♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. sound the fanfare for another eye-popping merger. apple, amazon, and alphabet report results. samsung makes changes in the boardroom. >> this looks more like a bollywood movie. matt: another dramatic week for the beleaguered banks. >> certainly the big question still remains. >> a couple good courses in a row does not mean it is good yet. >> not quite happy days. matt: ceo's make predictions for 2017. >> we are heading into a premium spiral. >> if there is a move out of

europe it will head to the u.s.. matt: it is all straight ahead on "bloomberg best." ♪ matt: hello and welcome. i am matt miller. this is bloomberg best your , weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. the week began with a blockbuster media merger as at&t announced its intention to buy cable giant time warner. ♪ >> now to the big deal everyone is talking about. at&t agreed to buy time warner for $85.4 billion. is this even possible? >> it is possible. you just have to turn the clock back 18 months or so, when at&t bought directv. that was another large purchase for at&t and this deal is

bigger. the deals have something in common, a lot of people invest at&t&t or indexes with because of their dividend so they look for companies that are free cash flow positive that will turn money so they can keep paying ever-increasing dividends. at&t is still ultimately seen as a utility to many investors. directv and time warner are big, large moneymaking machines. >> people talk about vertical integration. there is this historical concept that vertical integration brings the cost down for consumers, but this is basically at&t adding another asset into their bundle. a lot of industries are effectively in decline, whether it is the time warner business or at&t's own business, facing challenges on the wireless front. >> this feels like a that the ramp strategy. at&t is really betting on

content, going for something very aggressive. this is a game changing transaction. ♪ >> apple shares are lower after trading. the company posting fourth-quarter sales that fell 9% from one year ago and wrought -- brought the company its first annual sales decline since 2001. the other number we are watching -- iphone unit sales. it sold 44.54 million units, down 5% from a year ago. that included just two weeks worth of sales for the iphone 7. what you see is the highlights? >> the highlight is apple rumor turn to growth for the q1 december holiday quarter. emily: they believe. >> they believe. they're usually pretty good with that. other than that, everything is in line with expectations in terms of estimates for iphone numbers in the q4 revenue numbers.

>> what investors have been asking for is to make tim cook grow again. that is what we finally saw in this outlook. the outlook in terms of revenue for the december quarter is excellent. the company will return to growth. that is really what will get the stock moving again. >> let's look a cross german banks. deutsche bank said to be considering not paying bonuses in cash in order to boost investor confidence. that is according to people familiar with the metal -- matter. they say investors have allegedly been talking about replacing cash with deutsche stock. just how efficient in terms of a cost-cutting measure would be giving shares are parts of the investment to investment bankers? >> it is a really intriguing scoop, because you could remove a bunch of costs this way. you could temporarily pay

bonuses like that gave you could also help capital ratio by getting rid of the non-core unit. credit suisse did a similar thing a couple of years ago, which was profitable for the employees, but then the rules changed. it became less attractive for the company to do. on top of that, there was a morale issue. we would have to see whether it was structured and if it can keep the motivation up. motivation is behind the revenue in deutsche bank to you to lose more motivation would hurt them. deutsche bank unexpectedly posting profits in the securities unit reporting a jump in revenue. barclays reported a 35% jump in earnings. let's start with the analyst rap out of deutsche bank. we do not really know about provisions or much more about

the doj. what are investors saying? >> the reason you have seen the stock jumped is because there are still so many questions outstanding. certainly, people are happy to see capital increase. in a relatively quiet quarter, in terms of revenue up, cost down. kind of on track with their plan, but certainly the big question still remained. jonathan: this is night and day. deutsche bank versus barclays. let's pick out the investment bank. yes, trading revenue up on the debt side, but it will be a tough year the rest of 2016. jess staley says he likes what he is seeing in grabbing a market share. what is the story? >> barclays can afford to be a little bullish, because it started its investment bank restructuring a little bit earlier. it has the same strength with deutsche bank in fixed income trading. but with all of the noise around deutsche bank, one of their head

of investment banks says they have lost market share because of distractions. maybe this market share is not only coming to the u.s. barclays but also from deutsche bank. this ceo shied away from saying that, but certainly hinted at it . there will so be a lot of volatility instability in the investment banks. and as they warn, a couple of good courses in a row does not mean they are out of the woods yet. >> banks headlining today's earnings. it has been another day of ubs and others coming in above estimates, buoyed by the debt provision. what is that take away? >> it is not all happy days yet. albeit for different reasons. the takeaway, take rbs. the bottom line is still affected by litigation and/or -- and structuring costs. but the core decisions are doing better. you see bond trading listing the

likes of bmp and barclays and even deutsche bank. the take away has been you look at the course of the numbers being good, and investors are looking well beyond that looking at efficiency, cost cutting, restructuring. that is still very much the agenda for many of these banks. >> the u.s. economy picks up in the third quarter. the economy growing 2.9%, the biggest rise in two years. >> this is a story i want you to break down. what softened with the consumer. what picked up and will continue? >> that is the problem with this report. it is not as good under the hood. we saw exports rise. as you mentioned, according to the congress department, -- commerce department, a big rise in soybean exports during the quarter. that will likely not be sustained. early in the year, we did see the dollar strengthened a little , which is helped, but now the dollar has stronger. also, the inventory swing .6% of the rising

gdp. he take out inventory and the net export and you end up with about a 1.4% growth rate which is about where we have been growing. you can see where we could slip back in the next reports the next couple of quarters, if consumers do not pick up spending. matt: we will review more earnings reports later in the program. plus, monte paschi's ceo says he is found a solution to the banks chronic capital problem. he tells us all about it in exclusive interview. of next, a plan to finally upgrade london's heathrow airport. will it actually fly? >> we believe there is an economic case for the sanction -- expansion of heathrow, but it cannot be done at any cost. matt: this is bloomberg. ♪

♪ matt: this is "bloomberg best." i am matt miller.

quite a few big deals got done, but others hid regulatory snags. let's continue the tour of the top business stories eight in the e.u. where there is been a hitch in the takeover of syngenta. mark: cam china missing deadlines to buy the swiss -- to make the purchase of the swiss herbicide maker. how much of a big deal is this, that chemchina did not submit on time? >> they had a deadline of next -- friday to do it and they had a decision deadline of next friday where the commission gets dealcide to clear the without any conditions or do they open a longer in-depth probe and i can take months. what we see right now with the share drop is the level of uncertainty about what happens next. waiting for her five months for approval is tough when you want

the deal done as fast as possible. when you open up a realm of possibilities it is worrying for a deal you thought was very nearly in the bag. >> exxon shares here in germany slopping after the german economy minister opened a review of its takeover by china's grand chip investment. the move comes as germany seeks tighter control of foreign investment in european companies and the e.u. is now weighing in on the deal. >> it is the latest sign in a series of moves i german government to get a grip on this chinese influx of direct investment which has reached a record this year globally and obviously europe's biggest economy is a great target. tom: this is something for everybody in equity trading. is trying to buy

scott trade. a roughly $4 billion transaction. it is a small deal, but nevertheless at the heart of so much of online trading and the digital revolution in financial and investment services. >> the bank is td ameritrade largest shareholder. what is in it for toronto dominion? >> there are two things at stake, there is scale and cost savings. the skill comes with 3 million customers they are adding, not $7 billion in cost management. on the cost side, you put the companies together. the estimate is they can save $500 million per year. >> we have about $1 trillion in client assets when the deal closes. more importantly, what td ameritrade has that the founder of scott trade recognized was we have a number of platforms that are actually cutting edge that he would like to have, but he did not have the scale to be able to invest in. combined we have a lot of

opportunities to add value to scott trade. >> tata group has unexpectedly removed its chairman and a sign -- in a rare sign of conflict at the top of india's biggest conglomerate. what is going on here? >> the truth is there has been no explanation. we do not know why he was removed. in recent years, he was pushing for more fiscal prudence, because the company inflated after they bought brands like rover, and a hotel. he sold assets to tackle that. the ceo was already unwinding some of its assets to get that. he was considering winding up u.k. losses after losses last year. also, stakes in indonesian coal mines. the sense out there is that the tata may notact --

be in step with the ministry. >> this is looking more like a bollywood movie. mistry accused the board of not giving him an opportunity and wrongfully sacking him. the group has nearly $18 billion in write-downs. they are indian hotels. tata steel, automobile vehicles -- he calls them legacy hotspots. >> let's talk about infrastructure and air force. the british government has given the go-ahead to expand -- expansion of london's heathrow airport. the government has come down on one side. delay. is after years of seven years ago it was a damian saying that there would not be a third runway. it is a relief to get a decision with theresa may. >> what sort of boosted this -- is this post-brexit?

>> it is more necessary post-brexit. we have been working on plans to make sure we can deliver and if it's of a heathrow expansion as quickly as possible, that includes getting more flights offer the existing two railways -- runways. make sure that britain can benefit as much as possible from leaving the european union. >> it is a huge missed opportunity. allowing a spanish owned monopoly to waste $18 billion building one more runway that will not be delivered in 10 years and already be full when it is open is not a solution. we need three additional runways, one each and at least you but competitive pressure on each airport to deliver an additional runway in a time and cost efficient manner. >> it cannot be done at any cost.

there is no way the cost of expanding heathrow should be passed on to our airline customers. they should wear the risk and deal with the cost associated with expansion. >> we are talking samsung, shareholders have elected lee jae-young as the head. he is seen as the crown prince. nine-memberoin a board. he's the son of the current chairman, hospitalized after a heart attack in 2014. j.y. is already vice-chairman. this is seen as the next step toward becoming the chairman taking over from his father. third-quarter net profit falling 70% -- 17% after having to pull the note 7 smartphone. it was down to $3.9 billion over estimates of $3.4 billion. those revised estimates came in after they had to recall the note 7.

and stop making it altogether. the mobile unit operating profit million, a$87.8 record low down from $2.1 billion a year earlier. mark: we await the gdp numbers. this is the biggest piece of economic data since brexit. whoa. bit of a surprise. to the upside. little sign so says the elena -- o n s, a very pronounced brexit affect. there you go. the economy continues to surprise, growing by 0.5%. >> it is higher than we were expecting, but on one hand i am not that surprised because we have been talking to our members and we have seen quite a lot of resilience in the economy. certainly in terms of the british consumer carrying on regardless. we see strong retail sales and

offering consumer services so i think that underpins some of the services and even on manufacturing our service have been suggesting stronger growth related to how the pound is than thexports official data suggests. i think it is too early to read in what is the impact of brexit as far -- it is far too early to make any sort of adjustments. m news story a big qualcomm has , finally reached an agreement with nxp. qualcomm hopes it will allow it to diversify beyond mobile chips. >> just a remind us of the rationale of this deal. >> this is a defensive deal by qualcomm, which wants to move away from handsets. the phone market is slowing and they need to diversify revenues quickly and in a big way. this is an apt deal from that perspective. you're getting into the auto market, which is a slower growth market relatively to what the

handsets have been, but more importantly it moves a third or so of the revenue away from handsets and puts it into an area that is growing and one that is sticky and profitable. ♪

♪ matt: you are watching "bloomberg best." i am matt miller. it is a challenging week for monte paschi, europe's oldest bank. facing a shortfall, ceo marco morelli wanted a plan to shore up the bank's balance sheet. he added details in any close of interview with bloomberg television. mark: shares of monte paschi surging after the announcement of its plans to cut thousands of jobs and sell bad debt in a bid to attack -- attract investors to turn around.

bring us the key takeaways from the business plan. >> there were not a lot of fresh details. mr. morelli, the ceo, confirmed they are looking at raising 5 billion euros in the cap rating -- in the transaction they want to do at the end of the year. you have confirmation of the disposal, trying to get the bad loans off their books and you have bits and bobs of cost-cutting. investors seem to like it. morelli on a conference call with analysts this morning repeated they have not received interest from potential "anchor investors," large investors and institutions. he did not give any names. we still do not know who these people are, how much they are willing to invest in a bank that needs to raise 5 billion euros, possibly by the end of the year. >> are investors actively approaching you?

are you having to pick up the phone and call them to get them interested? marco: investors so far have been proactive in approaching. either at the bank or investment bank working for us. as i said, at that stage we could not engage in a formal toast. >> do you have a number in your head for the amounts of the capital raising you want to come from cornerstone investors or are you open to all things? marco: we are open to things. this is a mixture of interest from core investors, from into institutional investors. we need to find out what is eventually the conversion rate of bond conversion rate going to launch in the next few weeks. seek --t to gauge as we >> what would you hope for?

you have 5 billion yuan to raise. you swapt of debt equals the amount you have left to raise. what is your best ambition on this? the three legs of us are tied together, are they not? marco: the bank is looking for long-term stability. we need to make sure that the bank eventually -- >> how much of that $5 billion market would you like to see converted from that? marco it is difficult to make : decisions, to be honest. we actually receive huge interest from bondholders to entertain talks vis-a-vis the potential conversion. at this stage, it is difficult to come up with the firm number. at the end of the day, we want to make sure we raise -- the ,ank raises the 5 billion euros

that is actually the base upon which we projected the plan. matt: straight ahead, more of the week's most interesting interviews. what will 2017 look like for banks that do business in great britain. morgan stanley's james gorman has the forecast from the year ahead summit. and ceo sees of storms are gathering over obamacare. >> the next administration has about nine months to make something happen. matt: this is bloomberg. ♪

♪ >> what is your read on the current health of european banks, especially those that are fragile and systemic and important? >> the european banking sector has gone through a lot of improvement in the last few years. it has significantly strengthened its capital position as is indicated by most banks. --far as the systemic internationally systemic banks are concerned, they are under much stronger and more systematic -- if i may use the analogies of words, supervision by the authorities. it is not done at the

pan-european level. i think it is certainly a reassurance to the markets that they are in better health. matt: imf's christine lagarde weighing in on european banks in a conversation with bloomberg. this week in new york bloomberg hosted the year ahead summit giving prominent leaders a forum to address urgent topics facing business affecting 2017. we start with the dow chemical ceo, who sat down with john micklethwait to discuss the status of the proposed $59 billion merger with dupont. ♪ >> what we are doing as two companies is herculaneum. -- herculean. we are managing each company separate but also managing for the combined future that, once approved, will move quickly through to the next phase to

split into three. if you do not think complexities, my friend, that is just welcome in life. 2 going to 1 going to 3, this is going to a creation point of view -- my good friends know what i am talking about. i am employing a lot of accountants and banking's -- bankers and lawyers. the regulator is looking at that and trying to understand the piece where they are concerned, which is agriculture. all of you understand one of the strongest lobbies out in the world is the farm lobby. their agricultural sector is very critical to them somewhat protected. remedies, we are into phase two, which means we are in remedy negotiation. you notice i have ducked your questions so far. but look, in the scheme of value

creation, just a remind you of the numbers, this is a $130 billion deal that would create another $30 billion of value for the shareholder at zero premium, tax-free. it is worth a few months of delay. really, what we are doing with our investors is walking them through the clarity of each of these steps. we will get noise out of these jurisdictions, that you and particular, but i would allison to the noise. -- i would not listen to the noise. early of the year next year, a that includes february i will give you the answer. ♪ >> let's go to the news of the day, 25% forecast uptick in premiums. that alert came out on bloomberg yesterday afternoon. what is the read on that forecast? what does it say about the state of obamacare exchanges? >> we are heading into a premium spiral that will occur as a

result of not having a balanced risk pool. the law was built around having zero risk pool from having -- not having enough young and healthy people covering sick people. that is the paradigm around health insurance, when we lost five years ago. when you try to create balance risk pools in the market -- what is happening is that because the bill was not passed and we have weak mandates and etc.. we have a risk for running 10% or worse than what you would call a zero balance risk pool. if you think about the amount of premiums and exchanges it is about $44 billion a year, that means there is probably about $4 billion worth of losses because the risk for an risk adjustment is built around a zero balance account, people who pay in help the people who lost more.

what is happening as everybody is losing so we are all settling at 10% low breaking even, and everybody is losing money in the exchanges. was in miamiobama talking about the affordable care act and he used the analogy that the affordable care act is like a starter home, it is better than having no home at all, but there's a lot of work to be done here. what you make of that analogy and for the next president, donald trump or hillary clinton, what is the first thing he or she should do it how much time to the have to do something to reverse this spiral you are talking about? >> the next administration has about nine months to make something happen before those numbers we saw today appear tame compared to what could happen. you have five states really have one insurer who will get all the rates -- risk and that will drive rates of higher. >> from our perspective, just narrowly from the financial sector, and our institution, there is nothing good about brexit. we love the rule of law in england.

we love -- our folks like working in london. you have the ecosystem and infrastructure, the pipes, the plotting, everything am all headquartered there. we will have to have our headquarters in europe. we will probably have to have liquidity inand -- legal entities. we will have to move employees and their families from london to other places and we are trying to minimize the absolute number of people we do that for. hopefully we can transition that . another thing i have said is that it causes you as a global firm to look out and say, ball of the lines of businesses you have, particularly trading businesses, d a need to have trading businesses in london, frankfurt, paris, or new york or hong kong or tokyo? that door will open of people looking at exactly why they drew graphically placed --

geographically are placed where they are placed. >> which places do you think will gain from that? you mentioned new york, but others? >> based on time zone, new york is the one that -- from infrastructure, time zone, and other perspectives, if there is to be a move out of europe, it will head towards the u.s. i am not saying it will be large scale. you will not see a large-scale deterioration of our operations, but on the margin, the assumption that everything would now new -- moved to another european country is not necessarily the case. ♪ matt: also this week, erik schatzker traveled to capitalize -- canada's most important investment of the year, capitalize for kids, a gathering for top financial leaders that benefit children's health initiatives. big-name investors share their thoughts, beginning with tom wagner. ♪ erik: how would you describe

your state of patients? are your limited partners giving you the breathing space you need, or do you feel like there is a fire under your behind and you have to invest? >> the only time we feel pressured to invest is when you see the broad credit markets trading at high yields. erik: like january or february. >> like january or february. people want to know what are you buying and what is the risk you are putting in the portfolio? the nature of the risk. at any other point in time, investors know we are able to find interesting investments. they are comfortable with us being patient. that is an important part of pursuing a strategy. the.re are point in time, like present, where you have to rely on a level of patience to wait for the next great opportunity. ♪ erik: is it getting harder to find companies that need the kind of work that you do? is there last low hanging fruit that it used to be? >> we are always searching for companies. >> that is your job. >> that is our job. but for all of the companies we

are looking for, even though we ise grown, our portfolio roughly the same size. we are looking for the same or similar numbers of new companies, new lead positions each year. that number is three to seven new lead investments. it is not a huge number. i would say on the one hand, you might say it bite be harder to find the. -- it might be harder to find them. on the other, for us, i do not think that is true. not only are we looking for those ideas, other shareholders are looking for those ideas for us. and they are calling us. they will call us with ideas they think are undervalued. our funnel sometimes gets bigger because as we have grown a following of people who appreciate what we are doing because we have been looking out for the best interest of the shareholders and improving companies, people will call us can ask to get involved in situations. ♪

♪ matt: you are watching "bloomberg best." i'm matt miller. let's get back to the week in earnings. some big beats and strenuous spin, starting with t-mobile's jon legere. >> shares of t-mobile u.s. are rising today. the company beat profit estimates and managed to get new customers without punishing the bottom line, raising 18%. wereriber additions 851,000 compared with 818,000. this quarter was fantastic for us. 2 million additional net customers. that is 14 quarters in a row over one million at an average of 1.9. we always talk about paid, we had one million -- 851 million postpaid phones. 684,000 prepaid phones for

$38.01 and we had an adjusted -- we had revenue growth and surface revenue growth at 13% and adjusted even doubt growth of 38%. ever since at&t bought directv, they have not gained a single postpaid customer. they have been the biggest contributor to our success. i can only say in the short-term come of this distraction with them try to take over the entertainment industry is going to be a boom for the short-term future of t-mobile's growth. news,have breaking revenue coming in at 5.9 billion euros. shares at philips have up raised 11% this year. quarterlooking at third sales, 5.9 billion. where are we in terms of the cost, taking them out of the

business and giving guidance on those lines? >> over the last few years we have transformed philips and separated lighting away from the health technology activities. since may, we are focused on health care solutions into the market, helping customers to get better patient outcomes at lower cost. by being a focused company we are able to further streamline our own internal information -- operations. with a growing top line, we have 5% revenue growth in the quarter, and margin expansion we were able to generate a lot of net income and cash flow. auto earnings. fiat, chrysler and gm earnings beat estimates. saying, things will top out and things will roll over, then the numbers come. what is the story? >> gm had a record quarter. it was driven by business in north america, where we expect

sales to plateau. ford has been saying that. gm has really boosted earnings by focusing on retail sales to individual customers and dialed down low profit sales to rental feeds. >> fiat chrysler, i thought that fiat was saving chrysler, but it jeep is saving fiat. >> there is really a role reversal. chrysler gets most of its earnings from north america, mostly from jeep. they had a quarter. saying for the year fiat chrysler will make $6.3 billion. he is increasing estimates for how the year will turn out based on the strength of mostly jeep. >> baker hughes reporting a loss 429 million dollars in the third quarter. despite this they see activity increasing. things bottling out with opec. are we getting too excited in the short-term? >> it is tough to say overall.

i think right now what we are seeing bottom in some parts of the world all service companies seem to be talking about it. in north america we see a bottom, how fast they come off the bottom is another question. look hughes is saying to for an activity increase for the rest of the year. eli conversation about lilly, shares down almost 1% after the company met estimates. are you disappointed with the result even if the market is on the margin? >> we are absolutely not disappointed. $.88 per share. we have kept our eps guidance for the year at 350 to 360. we are marginally increased revenue guides for the year. we stopped guiding for the quarter many years ago. we certainly do not manage our business to meet a consensus estimate.

clearly, we are pleased with our performance. it includes 7% growth. -- volume growth and most of that is attributable to our new product launches. back --nue to reduce our pipeline keeps growing. powered by prescription drug unit which is expected to do well. there was a big issue surrounding the company remains its purchase of monsanto. investors remain skeptical. the monsanto share price is pricing in a lot of bigger toll -- from regulatory risk. are you surprised by that and when are you going to start talking to regulators? where are we in the process. >> we are in plymouth area discussion prior to us signing the transaction we also had in-depth discussions with

monsanto affecting the overall regulatory and product overlap risk. we think this is a very manageable risk. particularly looking at the commentary of the business -- complementarity of the businesses. we are confident that we can resolve any issue that may come up in product overlaps. >> coca-cola shares climbing after reporting earnings that beat analyst estimates. its third-quarter was reportedly helped by sales of smaller, more profitable package sizes. i took a -- a look at your earnings release and it emphasizes organic growth and profit margins. are those the things that strike you the most? >> absolutely. while we -- the important thing is while we are undergoing change, the company is continuing to grow across the -- growing in sparkling and other categories and across the world. it was a good and solid quarter.

>> twitter very much a stock in focus as earnings be estimates. they say they plan to cut 9% of the workforce to meet any profitability goal. are they cleaning up to sell or making a company to actually run it themselves? >> i think the latter. i think they would entertain an offer above the ipo price, but i do not think they are doing anything at the direction of a proposed potential acquirer. i think they clearly intended to be profitable on the gap basis and i think they would like to state017 and a profitable and i think they are taking the steps they should have probably taken three or four quarters ago. >> of for that shares are higher in extended training after -- alphabet shares are higher after extended trading after posting third-quarter sales and --

what do you think of the biggest highlights when it comes to the core google business? >> there is the expectation that google was facing a tough cop and growth would not have been what they expected. their growth in the core google website, -- they were expecting 300-4 hundred basis points. they beat estimates on eps and they announced a share buyback of roughly 7 billion. overall it was a solid quarter and it is a stock you want to continue to own. dimon shares sank as much as 5% after missed estimates are increased spending and how they could not make a dime in holiday sales. we are back to what we always remember with amazon, the fact

that sometimes they do not deliver a profit. our investors going to start swallowing profit again? >> i think you will have some investors worried about profit again. the holiday season is a big time for amazon, and here you have them saying we may make no money at all in the fourth quarter. they give quite a big range between zero and $1.25 billion. analysts are looking for more than that. they certainly will not be happy if it ends up being closer to zero, which they are saying it might be. they also were very surprised by the slowdown in profits in the current quarter. this is not a good picture for amazon. ♪

♪ >> this is a scattergram, something i found useless in the world of statistics, but i found

value in bloomberg's terminal. we are used to seeing biggest movers of it year or the day up or down. this shows us left to right, on the left side, stocks down for the day. on the right side, stock up on the day. the size of the bubble recommends -- represent market cap in the color shows the five-day move. matt: there are about 30,000 functions on the bloomberg. we always enjoyed showing you our favorites. maybe they will become your favorites. here's another function you will find useful. quic quick go. it will take you to our takes are you can get insight into timely topics. here's a quick take from this week. turkeys president is using a coup to keepry power.

for turks, revolt is nothing new. the country experienced coups in 1980, and 1997 when the prime minister stepped down under pressure from the military. byogan has been encouraged the military, academics, and other officials. the latest highlights is a division tearing the country apart. here is the situation. turkey's political identity echoes its geography, straddling the middle east in europe. , a nation where east meets west. the founder of modern turkey led -- is the military officer who led the nation of the post -- foundation of the post-ottoman state in 1923. since then, the turkish armed forces have played a central role in maintaining the secular western-looking society. the ak party was first elected in 2002, with erdogan now

becoming prime minister the following year, he is molding turkey back into an islamic world power by giving voice to an underclass of islamic conservatives. many turks love him. the size of the economy nearly tripled in a decade, but over the last few years, he stifled political debate, fighting accusations of corruption. in 2014, he began purging the police and judiciary, detaining journalists, and trying to control the incident. he says those responsible for the latest coup attempt follow and is merrick click -- cleric in the u.s.. erdogan is not being shy about his ambitions, building a more -- building a 1001 hundred 50 room presidential palace, a complex 30 times larger than the white house. here is the argument. while erdogan has been denounced for being autocratic, he is

still admired. his party's role has been the longest tear of stability since world war ii. poor turks have seen living standards rise under his control. over the years, the turkish people have been divided on what they think about the man in charge. turkey has been a member of nato since 1952, but has not been able to join the e.u., which is critical on the country's track record of civil liberties and lack of economic reform. erdogan does not look like he plans to leave power anytime soon. ♪ matt: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com, along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i am matt miller. this is bloomberg. ♪

♪ >> we are starting just like this? >> i don't know. >> when you grew up you do not have a lot of money, was it something you thought about ? >> people seem to blame goldman's for more of the sins of wall street more than they blamed anything else. could this be life-threatening? >> it is life-threatening for sure. >> do you think maybe i should step down from ceo and smell the flowers little bit more? tie, would you fix your please? >> people would not recognize me if i fixed my tie. i will just leave it th