>> coming up, the stories that shaped the weekend business. to ride a continue roller coaster. another drop in china's experts raises concerns and young says a direction for its spinoff plan. code. it will go to a new >> in a year of megamergers, this could be the biggest yet teste hear from the man with turning around one of the most troubled auto companies. plus, an exclusive interview on success inoff

the cloud, unicorns, and more. we added to our core value system the word quality. yvonne: it's all straight ahead on "bloomberg best." hello. welcome to "bloomberg best," a weekly look at the most important news, analysis comment interviews from bloomberg news on the world. at around the world. we started day with oil. most in nearly seven years today. investors are worried over suppliers will abandon limiting output.

let's go back to that decision on friday in vienna. so much as it was a decision by consensus, this is every member for himself. give us a sense of what saudi arabia is trying to do. >> a lot of people think that they are going after shale, they competition in the market with a shale producers in the u.s. the crazy thing about that is the shell can respond very quickly to sort of price movements but what might be the effect is it might have more effect on other areas around the world more expensive and oil everywhere around the world. this was an attempt to go to the market share of what shale is getting and it may have an effect on many other markets around the world. yvonne: the latest trade data from china does come from the slowdown is continuing.

exports fell for a fifth month in november while i slump in imports means a trade balance at $34 billion smaller than forecast but we have that surplus coming out of china. is enda. the studio and a picture for us. -- paint a picture of us. >> on the export side cometh hard to see a circuit breaker. what you get these factories out of the routers. they are suffering from weak demand from key trading partners like japan and the eurozone. the export side, hard to see where the circuit breakers will come. on the import side, there's a pricing impact. of ahere is some sense of pickup in demand as well helping imports. there is some pickup in demand.

taken together, the trade data a downturnflecting in global economy. >> cap who scrapped its long-term spinoff of alibaba shares. the shares are currently up. -- yahoo! shares are currently out. it will be transferred to a newly formed company. mirrorceo says this is a image of what we have done before. trade underes will a new ticker trade and yahoo! will go to a new one. >> it's such a beautiful euphemism. it's a mere image in the sense that he four, they were saying they could do something with the rest of the business and are now saying they cannot. i will ask you both the same

question. what can be done with the assets we used to call yahoo!? >> one, they can go through their turnaround plan. they haven't been very successful so far. potentially try to sell the business or find suitors that will be interested in buying this business. with a cable companies can be easy acquires of yahoo!. >> what has verizon done with aol? the advent -- add business. it is the ad platform for distributing and carrying them across the web and it's really the gem there. yahoo! has eternally been caught up in this hamlet-like of what are they and who do they want to be.

this has been the battle of yahoo! going on the way back to the 1990's. they've all struggled with this decision. great struggles and content. you have everyone on the outside telling them what they should do but it's a business that is profitable. record low interest rates unchanged this morning on the bank of england saying selling wage growth would keep inflation under control. fed brought through the likely decision to raise rates later this month. spoke to mark not long ago. they have these conflicting monetary policies globally so it's not like they can make a decision in a vacuum. claims they are very independent. he is generally

stuck between two people, two huge forces. and he has to sit in the middle .nd it looks very un-english i think there is an element to that. mario draghi give him a bit of flexibility? because the pound weakened a bit against the hero. -- the euro. they probably don't want to get too far away from each other. >> they might as well take the timeout and wait and see what they want to do next on the new year's day. the other dilemma they face is they are not very good at irony. they haven't gotten the joke that seven years of ultra-loose monetary policy is what created the cycle and energy. the global tailwinds with deflationary pressures are

coming from the complex. of all thensequence investment we now see blowing up. we have been anticipating to this story for three days. aey will combine creating $130 billion chemicals behemoth in the largest merger ever. dupont now, the dow and en.irma please explain the underlying rationale behind this merger. >> maybe it was a moment in time where this could happen but both of our countries strategically fit together so it just so happened are stocks are basically trading on top of each other. we could do a very tax efficient transaction to our shareholders by merging first and then doing

a three-way split up. it's very efficient from that standpoint but what ended up happening is we didn't just create the world leading agriculture company but we get to create a special company that will trade at a nice mold with high growth is nuts. and andrew at the doubt business gets the part of two point -- of that alwaysupont fit with his business. it's a pretty incredible opportunity for both of our companies. wasndustrial logic of this obvious to dow from the beginning. i couldn't pull off that coincidence. no one could. this is great for all shareholders.

♪

yvonne: welcome back. it's been a week full of compelling conversation on bloomberg. we spoke with the volkswagen ceo. he spoke about the road ahead for the company. you put all nonessential spending on hold. help me understand that a bit more. what is being put on hold? >> for the moment, we said we have to tighten the belt as they say and that affects all different areas. this obviously has something to do with the fact that we should

appear more modestly and savings is important. as far as investments for the coming years, it will be 12 billion year rose which will -- heroes -- euros. we will scrutinize all progress and say are the necessary now, could they be postponed. we are confident that in the coming years, we will be spending less money. >> can you get through this crisis without job cuts? that is an important topic. job security. it's also true in this time of crisis. want to keep the core workforce and all of the plants worldwide and that is an important task for us. we've always been committed to that target. >> 12 brands, 300 models. can we expect any trimming of

either models or brands? 12 excellent brands, i should add. up what we call it volkswagen group and we are very happy and glad and nothing will change in the coming years. when you talk about a variety of different models or the complexity within the volkswagen group, it is of course true to say that we are going to see some adjustments in our portfolio. we just have to see that we have many different engines and combinations that make our lives a bit harder. so we will be quite sure we had to look at a number of questions related to brands and in this region of the world. how they are positioned or is

set possibly needing to change. -- or is that possibly needing to change. when it comes to potentials, we will be better coordinated and i years, wen just a few will see a more successful volkswagen company then we see now. assetsrands including will those stay within the volkswagen family? >> these are all very successful and there is no reason to consider to get rid of those. me about the debate and conversation you had over the last day? why did you cut rates today? >> there is no necessity to change monetary policy at the moment. with negative rates, we have the willingness to intervene.

you have to look at the inflation forecast. it is roughly unchanged. the national environment changed. we expect 1.5% growth for 2016. >> in the news conference, you seemed a bit more upbeat than i have seen you before earlier this year. there a question that the economy is much more resilient and is the importance of the market diminishing? large part ofor a the economy remains difficult. pressure pretend situation remains very difficult. they are significantly overvalued. that means a difficult situation. hopeful for many sectors

that we possible to adjust this. >> there have been times where i had to get on the phone with really big managers who have really big clients and tell them what the downside was for them leaving their product off of spotify. all of the music is still available on youtube for free, still on the piracy servers. you are missing out on a big audience and the revenue stream. and you are ignoring the future. her train katrina is coming. you are standing in the house right now. >> have you talked to taylor swift? >> no. >> how does it get over its taylor slipped problem? spotify needsw if to get over the taylor swift problem. people have to see the future.

free already exists. it's a flawed argument when you say i don't want my music on any service that offers free one free already exists. so is taylor swift wrong? is she on the wrong side of history? >> i will say it's wrong but in general, it's a flawed argument. >> a lot of television is on-demand. an increasing demand whether it be people pulling it off of a video or watching digital on other devices. much more of it is on-demand. >> as we see this transition take place, we call it court cutting. cableoes that mean for companies? obviously is going to change one revenue stream and make another more important. couple things going on. just because it's on demand doesn't mean people will cut the cord. it's a point in viewing.

shaving but acord lot of that is overstated. i'm more bullish that cable television will be around for the longer-term. out, cable itself has two revenue streams, a digital stream and one from video. i don't think it's going away. ♪

yvonne: you are watching "bloomberg best." broke of companies headlines this week.

some dealing with setbacks and some just making deals. here is a sampling of the week's big stories. >> anglo-american shares sinking investmentr hold its day. anglo suspended its dividend and disease impairments of up to $4.7 billion. minus are among the biggest losers. the other news, the disposals. a lot news outside the dividend story. >> in this environment, you will always see a reorganization of these kinds of camp and news. thesew a certain -- of kinds. no doubt the dividend is cut and they will go for a different dividend policy going forward. same paint it sees as glencoe. anglo move on the dividend. where is the line in the sand?

where is the line in the sand for the dividend at rio and bhp? >> they're going to want to set themselves apart. they are a lower cost reducer and slightly better focused and the commodities. they are a safer place for investment. anglo is more diversified. it carries more risk. with that, more opportunities. more exposure in south africa. are we organizing that portfolio. it looks like a better company. glencore announcing new financial targets as part of its business update today. their cutting debt targets. it has been a brutal week in the markets. have they done enough? >> investors clearly liking these new goals for debt reduction.

in a statement earlier today, they said they intend to cut that to 19 billion. that will be the net debt burden at the end of 2016. debt stands at 30 billion, which is more than anyone else has the industry. the other thing we learned was how they will achieve that. one point 2 billion getting parroted back from the gear. we spoke a lot about assets. the previous target was to raise $2 billion in asset sales. today, they said they want to raise 4 billion. >> it kind of wonder how really he has held hostage the fortunes of what's happening ultimately with the demand of this side story. there's a lot out of his control. >> in a statement today, they made it clear they will cut

production and cost further if necessary. >> shares of chipotle falling again today. they're closing after dozens of boston college students eight there over the weekend. local officials are leading to the nor of virus. joining the for the latest is craig. get us up to speed with what is happening. 80 students. quicklyany coming out to say let's not rush to judgment. >> they have made a big point of saying either has been no new e. coli cases. the point they're making is we have this issue starting in isttle and oregon but that contained and this is a separate incident but the question is here is another bad headline. they had a virus incident in california over the summer.

there is still this feeding question of the business model and their food safety standards. >> is their national effort underway to find out what is happening? >> the cdc is looking. they rot investors conference this morning. there is a little frustration i heard from aaa and the way it's been handled. it strips and drags. cdc comes out and says all clear, they can't move on. that's putting a credible risk for them in the stock market. >> for me ask you about what that means for this company's bottom line. >> to didn't get much specificity. they said we will pay what it takes but they did say they will pressure margins. it will be something to watch very closely. this is a company that had questions about growth before the food safety stuffit. >> is been a tough year for ipos

with fewer companies looking to go public. but one is set to buck that trend. what made you guys decide that now is still the right time to go public? always tried to build a long-term company and we have been preparing for a longtime. we have in making sure the process wiseally to do this and we have a disruptive model in the business scarlet:. we want to go public when the company is ready rather than the market. >> some seem to want to hold you up as an example of a unicorn you did it right. you have been profitable for several years. heavy felt additional pressure from his comparisons? -- from these comparisons? >> i think we build a very unique company. from the market we attack, we held teams collaborate and be that'soductive and

different as well as a business model. we spent a lot of money on research and development. ourt know if you could use company has a dull weather for other ipos. the arrest this year of dozens of executives in a corruption investigation. it's far from filling its available sponsorship slot and has forecasts a lot this year of $100 million. joining us from singapore, jeffrey, the south east asia and ceo. let's talk about the latest headlines we solve. auto group joining as the first sponsor in two years. fifa said it wasn't an easy sell. or you surprised by this deal? >> at a fair getting to be a big

global player. investigation,is alibaba is not tainted by the past. right now coming through, it's less of alibaba using fifa as a platform. when we return, we bring you stephanie ruhle's exclusive conversation with salesforce chairman and ceo mark benioff. coming up. ♪

yvonne: welcome back. bloombergs stephanie ruhle recently sat down for next visit interview with salesforce chairman and ceo marc benioff. he leads one of the most successful cloud companies. his leadership style has brought him the attention and claim. the conversation began on the topic of salesforce and the cloud.

>> the cloud has been your signature for so long but without the infrastructure platform, do you really think you have the full offering? >> i think the exciting thing about technology and how it's and back in san francisco where i live and work, the only constant is change in the technology we started with when we started our company and the technology happening today has changed dramatically. it's about the cloud, social, mobility. the rise of the mobile phone. 7 billion smartphones. it's about incredible changes in .rtificial intelligence technology itself is always changing. the number one thing that will not change for your business is your important relationship with your customers and that's our job at salesforce whether it's ,n sales, service, marketing and everything we do we are only focused on one thing, which is

customer focus. at other: when i look big tech companies -- microsoft. microsoft seems to have lost its grew. companyre a mature tech , what would you do, what can they do? >> you have to realize the world has really changed. you can see that just walking around the streets of new york and speaking to our customers. the conversations are radically different. prized commodity its growth. every coi met with today once more growth. haveknow if they will not more growth, they will have something they don't want, which is an activist shareholder. when they don't have growth, they don't have market capital improvement. this is a serious issue for every one of the major ceos. it doesn't matter what industry. they all want that.

my advice to them is ray simple, which is let's talk about her vision between -- is very simple, what is your vision to connect with your customers and new ways, what is your customer growth strategy? , theyery other tech ceo have something different to sell . it could be financials, computers. the only thing we are selling is one thing, which is how do we help you grow, connect with your customers in new ways? it's a very simple mantra. seen oracle have good cloud numbers. is that a real threat to you? >> we're not about the cloud. we are about customer conductivity. stephanie: you are about the cloud. >> we have been crystal clear on technology.f

that part is true. we have done a great job using the clout to grow our business both -- but our sales business is not about the cloud, it's about being number one in sales, and service, marketing, building , customerommunities analytics, customer apps. that is our focus. the cloud is important. we are one of the largest of the enterprise cloud providers. it is the vehicle we do that but they i met with today did ask me any questions about the cloud. they went to know how they will build their business. that's all they really care about. i'm sure if i wanted to the i.t. department or to me to be cio, they might want to talk about the bits and bytes. that's not aware we are today in this world. we are in a world where growth is the precious commodity

everybody seeks and that's what you want to help companies acquire. stephanie: all of these buzzwords that make us feel like tech is a bubble, being a disruptor and the valley, they start to feel gimmicky. when he think about who the ultimate disruptors are, it is activist investors. you are in actual operation guide. you are a creator. he built a business. is it fair that founders like you have to deal with activist investors knocking on your door saying try this and they have no requirement. valley, wesilicon are the dreamer of dreams. stephanie: that's nonsense. that's giving silicon valley too much credit. >> this whole country is based on the concept of ideas, innovation. that's what we do and that's what makes the u.s. great and different from everyone else.

my job ise about creating value but i have to tell you where those dreams come from. you can be the dreamer of dreams but by the end of the day, the dreams come from the customers and the reason i go to new york city, london, tokyo, and me with the customers is to listen deeply to our customers and to ask them what do they want, what are their fears, plans, what are they focused on? some do have activist investors. producte incredible visions for the future. our job is to partner with them and say let's figure out how we're going to get you to have that one on one relationship with your customer. they are all going to that point where we can have that level of customer fidelity, customer intimacy they maybe don't have today. ♪

yvonne: you are watching "bloomberg best." let's return to stephanie's exclusive conversation with salesforce chairman and ceo marc benioff. salesforce has been an investment company since 2004. what is he think about growth in silicon valley today? >> your stock is trading at an all-time high in large part because of her massive growth. you have the internet of things. you have all the buzzwords. >> and the revenue. stephanie: and the market share and the customer satisfaction. this takes me to the tech bubble. beneath you, around you, there are so many as mrs. the talk

about who was on their board and all the money they raised. this mean we see a whole lot of dead unicorns in 2016? dead, see some that are some that are sick, some that are fine. it's an amazing time in san francisco. i've never seen a time quite like this. stephanie: in a good or bad way? >> in a good and bad way. the level of innovation, new creativityideas and starting as unprecedented. in a bad way, i have been saying this for a while now. the unicorn thing is not great. it's not necessarily something that isn't worth this much money. we don't actually know because they've manipulated the private markets to achieve these evaluation. i don't think a day goes by i don't get a call of a company at $1 billion or

more. this is unheard of. the reason why this is now is it has become a self-esteem issue for these entrepreneurs. when salesforce went public, we were between hundred million and 200 million in revenue. run foreen incredible salesforce but at that level of market cap, i'm like that is amazing. not investingm any more in companies with $1 billion or more valuation because i don't believe in that unicorn theory. those companies -- i tell you what i will tell them. if you think you have a $1 billion valuation, get in the public markets. stephanie: how would you compare 9? to 199 plexus companies were going to

the public markets and getting rationalized. needs toat really happen today. you will see some great companies emerge. the market rationalized fitbit. to have earnings calls, has to run his company in the same way i run my. that's my advice to these other cos they need to get out and let. the market rationalized these valuations. much easier would your job to if salesforce was private? >> i don't think easier. i think it would be harder. being a public company is good. in our case, it's good for us and it forces us to make sure we keep the cadence.

we have to keep our eye on the ball. where are we in those merger quadrants? we are in our revenue. we can just sit back and relax. we have public investors to answer to. that's what is so exciting about being a public company ceo. there is no reason why these companies who claim to be worth billions of dollars should stay private. stephanie: hubby told them they are making a mistake? think telling them now i we've all gotten involved in certain companies at different levels of market capitalization but today i think this has turned into a mania.

manias are dangerous. >> i agree. here we are in this unicorn brand. we never had that word. stephanie: i've always been talking about it. >> the rest of us were not talking about unicorns. now that's all everybody is about. i am a fan of the public markets. i know if he in a public investors like the one you mention. to comee they're going in and make some bets on private companies. the unicorn mania going on. ♪

yvonne: welcome back. as we wrap up, more stephanie's exclusive interview with marc benioff, chairman and ceo of salesforce. the topic turned to the responsibility of a ceo. stephanie: is it dangerous for companies -- four ceos leading their companies when activist? you have big shareholders and have conversations -- canu but they cannot you do your job when you have

hedge fund managers sitting behind desks pointing fingers and shouting accusations? your job. that's what you sign up for. that's not a mystery. your answer and to public shareholders. if you want to be successful today as a public company, let me give you some advice. you have to move from being focused on your shareholders to being focused on your stakeholders. that is what you create success. activist shareholders are a key stakeholder but let me tell you another -- customers, partners, schools.nity, your women are a key stakeholder in silicon valley. au better be ready to run multi-stakeholder dialogue. that's the key to bring a great today.g a great co

if you can manage a multi-stakeholder dialogue and have to deliver the growth, you have to do all that but you have to evolve to a new level. that's the key. if you get tunnel vision that it's all about activist stakeholders and these letters, that's fine but don't forget about everything else is key to being successful as a ceo today. that is the key. that is the fundamental key. stephanie: but that's like 17 different locks with 58 different keys. our other ceos in america sleeping? when you talk about all of these verticals that you need to be on top of, i don't know how there's time to do it. who arehear other ceos not just preaching this but you're actually doing it and delivering. >> this is what my messages, which is if you want to be successful today and you what

you have a successful tech or media company, what ever it is, you have to think about the world we live in holistically. not to think about everything. i think ceos today and business leaders are as important as political leaders. they have a role like political leaders which is they have to stand for something. this is important and when things happen in the world you don't agree with, you have a responsibility to come forward and say i don't agree with that because it doesn't support my employees or my customers. you also have a role to do things like -- you saw this with us last month -- a woman the same as men. stephanie: why weren't you before? why did you have to do this exercise to write things? -- right things? >> every company today in the database.an hr

they all know the names of their employees and their salaries. can you say as a ceo on a public stage, i stand for the quality. i stand for equality. you can walk into corporate headquarters like i did today and there is always a plaque close to the elevator that says this is our values here. integrity, honesty, hard work. i didn't see any plaxo that said plaquest -- flax -- that said equality. it is time to add to your core value system in the ward equality -- system the word equality. we have a database where we have everyone's name and we know how paid.veryone is hit a button and say we stand for equal pay.

stephanie: we talked about ceos g compensated very well. does the ceo deserve to be paid millions of dollars when the company is not doing well? hewlett and packard for instance. >> i think pay has to be late to performance. it's mostly critical with the ceo and the great way to do that is to make the vast majority be linked to stock. if the stock does not deliver, the ceo should be removed. stephanie: do you think marissa mayer gets judged too much because she's a woman? >> signage you to fan and friend of marissa mayer. -- i am a huge fan and friend of marissa mayer. i don't think you can be

critical or judgmental enough of somebody who is going to be a public company ceo. you have to be willing to be in the fire if that's what you're standing up for. that's also why they get paid a little more. these are hard jobs. this is a tough work. you're committing yourself to something at a very high level of performance. she has a great pay package. she has to be held accountable. where she is right now. i have a lot of confidence in her ability to create a great yahoo!, to be successful at whatever she does. stephanie: when you hire her? >> in a second. of course. she's amazing. that's all for "bloomberg best" this week. you can get more business news

from around the world at bloomberg.com. thank you for watching bloomberg television. ♪ . .

announcer: from our studios in new york city, this is "charlie rose." charlie: "the big short" is the new film from director and writer adam mckay. it is an adaptation of michael lewis's book of the same name. the story follows a group of outsiders in the world of finance who bet against the credit and housing markets in the years leading up to the financial crisis. here's the trailer for the film. ♪ [telephone rings] >> michael, how are you? >> i found something really interesting.