♪ david: coming up on "bloomberg best," the stories that shape the week in business around the world. bonds start the week with a sell-off. hopes rise for an opec output deal. hold the phone -- samsung is moving into cars. and janet yellen hints at an eminent rate hike. chair yellen: such an increase could well become appropriate relatively soon. david: the earnings reports just keep coming from u.s. retailers to japanese banks to european airlines. carolyn: we had a very resilient year. we have had a very good year. david: and the trump transition has the world's attention. big thinkers share their thoughts on what may be coming. bill: it is going to be much more corporate from the individual. joe: nationalism is for trade.

prince al-waleed: i think he will have a focused strategy, a focused plan, a focused policy. david: it is all straight ahead on "bloomberg best." ♪ hello and welcome. i am david gura. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. most global equity markets ended the week on a tear, which started last week, shortly after the election of donald trump. for global bond markets, the week began on a different note. david: the global bond route deepened after a record $1.2 trillion was wiped out of the market last week. 30-year yields topped 30% for -- topped 3% for the first time since january. jon: i wonder how long yields can keep spiking without the risk rally taking a big hit. matt: there will be plenty of buyers for a higher yield. there is still a thirst for the

yield in the market, and at some point, value in a treasury market will be there. i do not think we are that far away. i do not think inflation is going to get out of control. so, somewhere with a 10-year around 3%, i think there is better value there. i am sure investors around the world, where rates are very low, say in japan and germany, those yields will be quite attractive. alix: as an investor over the last five days, what did they want to hear from donald trump? richard: so far, the market pricing reflects the view that this is going to be a change in the policy, more fiscal stimulus, potentially tighter money. i think what they want to hear from president-elect trump is some way that he will renegotiate and reevaluate these trade deals. the focus right now is there will be fiscal stimulus, infrastructure, tighter monetary policy, deregulation as well on

the financial side as well, but i think the big wildcard is how the candidate and then president-elect trump approaches what he says will be renegotiations of trade deals. david: u.s. consumers are continuing to spend. sales at u.s. retailers rose more than forecast, as we just learned, so what we make of these numbers, mike? michael: they are really good. not only did the october numbers come in strong, september numbers revised significantly higher. total retail sales went up to 1% from .6%. the retail sales control group, which is what economists look at, is up, and in the month of october, the control group is up. we did take a pause in later summer, but consumers are now spending again. jon: how does it influence the headline figure? michael: economists take a look at what they call the core group, which strips out gasoline, food, and it also strips out building materials because they go in to gdp

through a separate measure, so at this point, it looks like a .8% rise for the month of october, and .3% for september that we are starting to see the consumer spend more, which strengthens the case for the fed if they want to raise rates. david: all of us continue to wait for decisions to come out of the trump transition headquarters about the team that will take the field come january 20. yesterday, we reported that the team had recommended steve mnuchin, the former goldman banker, for treasury secretary, but there has not been a formal announcement yet. the president-elect yesterday tweeted "very organized process taking place as i decide on cabinet and many other positions. i am the only one who knows to the finalists are!" let's start with that treasury appointment. what do we know about the mnuchin -- is it troubled or is it just held up? what is going on? steve: this is trump's pick as far as we know, and trump is right with that exclamation point, he is the only one who knows.

david: if that is right, why is it taking that long? steve: there is definitely a power struggle in the transition team. chaos may be overblown. i think people are making a little more drama than it is, but what we do know is it is delaying the process. there is more paperwork they have to do, there is a kind of a restart, a little hitch, and they are already behind. there is some concern in the transition team because there is a lot to do. david: treasuries fell, oil advanced and a fed rate hike could come very soon. yellen reiterated her previous statement that future rate increases will be gradual. the open question was -- what will she say, if anything, about stimulus under a donald trump presidency? what do we hear today?

carl: she did not mention much about that in her prepared testimony. probably the more interesting part of the whole episode was the q&a, and she basically was saying, well, we needed stimulus earlier on in the economic cycle when the unemployment rate was 10%, 8%. now that it is down to roughly 5%, it is much less critical, so she has warned that adding fiscal stimulus to an economy that is very close to full employment could actually generate an undesired pickup. vonnie: hang on a second, carl, they have been begging fiscal policymakers for years to add stimulus? carl: yes, that is the attorney. we needed it more five years, two years ago than we need it now. right now, it is just icing on the cake. that being said, she was also bemoaning low productivity growth, and that infrastructure spending could help to move the needle on low productivity.

guy: the dollar has been on a tear, surged more than 5%, reaching its highest level since 2003. you can see this outperformance we are seeing on the dollar index right now. it changes everything. if you had to tear up your models, the dollar is on a tear. mouhammed: yeah, this is really just a normalization of interest rates we have seen from the federal reserve. it has taken a long time. they get their first rate hike last year. the dollar obviously benefitted on the back of that, and now we are talking about the second rate hike. guy: it is the fed, it is not the presidency. mouhammed: obviously, the election has led inflation expectations to surge. the interest rate has supported the u.s. dollar. david: we have now had 10 straight days of the dollar rising in europe, josh. what is driving the dollar, and does it stop at some point?

josh: a couple of things, one is the perspective of divergence of monetary policy. it is likely the fed will raise rates in december. more importantly, the path of looking forward, people are anticipating maybe further hikes ahead, while the ecb is looking to put its foot firmly on the accelerator, not likely to take it off. then we have the election in the u.s., right? markets are focused on the prospect of pretty substantial fiscal stimulus coming in the u.s. so, you couple those two things, and they imply higher rates in the u.s., better economic outlook, and a stronger dollar. david: still ahead on "bloomberg best," a weak surge of opinion on the impact of the donald trump presidency. insights from investors ranging from a saudi arabian prince to bill gross to a bond king. more on the week's top business stories -- another hot app is about to go public. sarah: their point is definitely going to be to emphasize growth. david: this is bloomberg. ♪

david: this is "bloomberg best." i am david gura. let's continue our global tour of the week's top business stories. there was a lot of buzz around mergers on monday with samsung one of the major players. alix: several multibillion-dollar deals struck the market this weekend. in asia, samsung agreeing to buy harman for $8 billion. in europe, novartis is reportedly in talks to acquire u.s. drug maker amneal pharmaceuticals in a deal valued around $8 billion. and siemens has agreed to buy software company mentor for $4.5 billion. that is a 21% premium on friday's closing price. i want to start with samsung. this is about smart cars. >> overall, the smartphone industry seems like it is slowing down. this is an $8 billion all-cash gamble to get into the car

space. the cars will not go away. harman produces most of the stereo systems and has moved into other elements of the car, so basically, samsung will become an auto supplier. they will be selling parts to ford, gm, toyota, chrysler, etc. scarlet: more than $25 billion of acquisitions were announced in health care, tech, and financial services. i want to start with perella weinberg agreeing to buy tudor, pickering, holt. the two will force an investment bank with more than $12 billion in asset is bigger better in a less-tightly-regulated financial industry? jeff: perella was not that strong in the oil and gas space, and tudor pickering is very strong in that area. and we have not had a lot of energy deals. in fact, i cannot think of anything maybe other than the ge-baker hughes deal that happened two weeks ago. that is the only big deal this year. scarlet: we have had plenty of deals that fell apart. jeff: exactly. oil will settle in at $40, $50,

or $80, whatever, and it is a good time to buy somebody who will give you expertise, give you some names in that space, because there are a lot of deals to come out of that space if and when it picks up. guy: reynolds is taking a higher buyout price from rival cigarette manufacturer b.a.t. this is according to people familiar with the matter. they say the second largest cigarette seller in the u.s., b.a.t.'s $47 million offer is too low. -- $47 billion offer is too low. what is the market saying about how much more money we may have to pony up here? ruth: the market also seems like they are not going to bump too much more, up to 10%, but no more than that. prices trading below the original offer price, which i think goes to the fact that people are saying -- who else can reynolds go to? b.a.t. has a 42% stake in the company. guy: they are locked in really. ruth: yes.

they will not have as much antitrust as they want. it feels like b.a.t. has a bit of an advantage in this negotiation. cory: snapchat begins the process of going public. the parent company, snap, filed confidentially for an ipo under the jobs act. the company is seeking anywhere from $25 billion to $45 billion. -- $25 billion to $40 billion. again, they do less than $1 billion in revenue. it is fairly amazing that if we are talking about a $25 billion ipo, that would be 25 times revenues at best. facebook went out at 12x revenue and collapsed afterwards. this is very aggressive pricing. sarah: this is absolutely aggressive. what they will try to emphasize, though, is their growth potential. snapchat is very early on their path for revenue, and they already have about 1/3 of

facebook users in the u.s. they are definitely not making as much money off of every user as twitter or facebook do. twitter has fewer daily active users and is expected to have $2.55 billion in revenue this year. snapchat will probably have $350 million, which is definitely a fraction, so their point is definitely going to be to emphasize growth. rishaad: we have got this boardroom battle intensifying with tata global beverage's division becoming the first in the conglomerate to remove cyrus mistry as chairman. >> it was more than three weeks after he was toppled. what is the latest that we have? rosalind: tata global beverages is a partner for starbucks, and it is the first tata unit to push out mistry as chairman. according to an exchange filing, seven of its 10 directors at tata global beverages voted to

replace him, and harish bhat will take over for chairman. a statement said there was nothing on the agenda about replacing the chairman, and the ousting is a repeat of the illegalities tata did when he was removed as chairman of the group. there are 29 companies under tata sun. tata sun holds the majority of the units, so that makes evicting the chairman much more difficult. all of the uncertainty surrounding this has pushed tata's shares lower, as you can see. mark: crude reversing after a surge in demand from u.s. refiners, and at the same time, russia's oil minister expressing hope that opec would reach a deal. this feelingare that a deal will be reached. >> it suggested that opec

countries are pulling out all the stops diplomatically to lay the foundations for a deal on november 30. there is clearly a lot of work to do yet. mark: doha is the next point of call. the saudi minister will join fellow members of opec there in doha. with russia, what is the top of the agenda? iran, iraq? will: i think that is right. interesting that the iranian and iraqi ministers will not be there. it will be a chance for saudi arabia and russia to exchange views. saudi arabia has been pretty adamant all along that for this to work, he wants participation from russia. within opec, iran and iraq are clearly the stopping points. saudi arabia has put some red lines. we will see if iran and iraq and -- are willing to to compromise. haidi: japan central bank announcing on purchases. -- bond purchases. news reporter kevin buckland is with us. we knew this was going to happen, and it is a better time now than ever. >> the market had basically

thrown the market -- the gauntlet down to kuroda with the fastest pace of yield appreciation since august when they were coming off of record lows, and kuroda has responded to that with unleashing this tool, but they have not used yet -- they announced in september as part of a yield curve control, unlimited purchases, a fixed rate. what they do with a sort of verbal installation is to set a line in the sand for yields in the two-year to five-year zone. it also kind of goes some ways to answer a question, at least according to the current economic conditions, of what shape of the yield curve the boj is after. they had set the deposit rate at -0.1% and the 10-year is set at 0%, and there was question about the shape of the curve in between those points. now we have got a little bit of clarity on that potentially. anna: the bank of cyprus, the nation's largest lender, is applying for a standard listing on the stock exchange.

that is to tap a broader pool of investors and removing yourself from the athens stock exchange, coming instead to london, is this a vote of confidence in london as a financial center? john: unquestionably. we said we need to disassociate with athens. we have no business interests there. greece is going through its own challenges. it is important that cyprus, which is in its seventh executive growth quarter, needs to be positioned as an investment opportunity separate to the historic association to greece, and london is one of the greatest capital markets. it is where the providers need its resources, and this is going to help. anna: it will remain so. john: yes. i think the conversation about brexit get confused. we need to address london separate to what the united kingdom is going to do. we're positive on the city. vonnie: former valeant

executives were arrested, allegedly involved in a multimillion dollar fraud and kickback scheme. there is a press conference. what did he say? drew: we got more detail on the charges that are being filed here, against one former valeant executive and we have reported the prosecutors have looked at some senior valeant executives, howard schiller and mike pearson , the former ceo and cfo, but we obviously did not see charges for them today. there were no charges against the company. those two things are probably good news for valeant, though not out of the woods yet. >> volkswagen says it has reached an agreement to cut 30,000 jobs worldwide through natural attrition. 23,000 of those will be in germany.

the move is part of a plan to save 3.7 billion euro. 30,000 jobs -- will most of it be volunteers? chris: yeah, it will all be volunteers, essentially. this package is a typical volkswagen package. it is pretty big number -- 30,000 -- it sounds like, but it is over the course of several years, and they agree to that for no forced layoffs. they expect people to retire early, or retire in a natural course of their job career. or when people leave, as people do they just will not be , replaced. it is going to be a very soft program and easy thing to swallow for the employees. francine: $3.9 billion in savings. will they be able to achieve it? chris: they should be. they have a lot of room to cut at volkswagen. they have a huge organization. the group was over 600,000 people, so they have got a lot of capacity cuts. 3.7 billion euros should be achievable. they will make it. ♪

♪ david: welcome back to "bloomberg best." i'm david gura. throughout the week on bloomberg television, we explore how donald trump presidency could affect global markets and international politics. some of the most interesting perspectives came from prince al-waleed bin talal. a billionaire with expensive holdings in u.s. holdings as well as a member of saudi arabia's royal family. erik schatzker sat down with him. erik: as a global investor, because that is what you are, are you more or less confident than you would have been had hillary clinton become president? prince al-waleed: i do not like

to interfere with u.s. politics. i have a very good relationship with both administrations, whether republican or democrat, and what is important are the policies -- is the policy. erik schatzker: that is what i am getting at. are you more or less confident for the prospect of the u.s. economy, the global economy, for the returns you can generate with your investments? prince al-waleed: to be honest, when mr. obama took the reins eight years ago, the u.s. economy was almost in a bankrupt situation, the banking industry was in shambles. i think the united states will be in good shape. erik: as you know, your highness, there is a lot of concern that the trump administration will be less supportive of the middle east, because of concerns of terrorism and the cost of military support and immigration.

do you expect a meaningful shift in u.s. policy here? prince al-waleed: it is no secret that the relationship between saudi arabia and the united states has not been very nice in the last eight years or so. it has been very turbulent. i think with the trump administration, we will have a focused plan company focused policy. i think once trump begins thinking deeply about the oil of the world and saudi arabia and of course the united states, i think the relationship will be a lot more improved between both groups. erik: so, regardless of what exactly he tries to do, you see it getting better? prince al-waleed: it is just a shift between president-elect

trump and president trump. we have already seen the growth, advancement, and change between candidate trump and president-elect trump. i can assure you that the change between president-elect trump and president trump will be much different. david: you can see more of the interview on bloomberg.com. straight ahead, prominent ceo's and investors weigh in on the trump transition. jim: increasingly now, they are the party of the working man. david: this is bloomberg. ♪ . .

♪ david: this is "bloomberg best." i'm david gura. let's return to the number one topic of discussion -- the implications of a donald trump presidency for markets and the economy. it is too early to make confident predictions, but we spoke with business leaders and investors who are making preparations. erik: what does the ceo of a company of your size want the president to keep in mind as he considers the implications of free trade and protections? joe: be mindful about -- many people. if he asked me, but i would

think the president-elect would say is to lead this country, just act as if it were your own country. erik: you have said, joe, that the populist tide in europe -- whether it is represented through brexit, for example -- poses more of a risk to your business. what kind of an impact could have on siemens? joe: first of all, the way it goes is populism starts into internationalism. nationalism is poised for global trade. so, this whole world has been prospering because of global trade. globalization means many things for many people. now, if you turn this back, this poses quite a risk to actually going to the next step to industrialization. everyone talks about

opportunities for the rest of the world. so, to think a little bit about the internet coming to the industrial world, the internet has got no boundaries. internet would stop, and say hey, wait a minute, now i am going to france, i not allowed to enter. that is not the way it works. david: we have had such a run of regulation over the last eight years. what is going to be left of it in president trump's administration? gary: it is hard to forecast how far they want to go and how it will all play out. if dodd-frank is on a table, as it apparently is, some aspect of dodd-frank have been effective. i think most people would conceive, even chairman greenspan's comments, that higher capital at major financial institutions is a good idea and has made those institutions sounder and safer.

on the other hand, i think, you know, you do not want to treat all financial institutions that happened to be greater, that have balance sheets more than $50 billion, identically because they do not all represent the same systemic risk to the system. so, certainly certainly there is room to improve dodd-frank. one might wonder whether the consumer financial protection bureau has been a net plus or not. the jury is still out on some aspects of dodd-frank. i think there is a lot of room to improve it. i think if you repeal it, then the question is -- what do you replace it with, if anything? jon: the one thing you can repeal is dilute. i wonder which areas you would dilute? it is a careful balancing act. you want to address capital and the erosion of risk issue, but at the same time, you are eroding risk-taking capital. as far as you are concerned, gary, how negative has that been? gary: well, i think we have seen some drying up of liquidity in financial markets.

that is costly -- we should not kid ourselves. erik: how does donald trump's election affects the global oil market? bob: i do not know. i think that is around the opec data numbers, which normally, production does, in september, october. i do not know. we will wait and see. erik: let me ask you a question you can answer then. bp and a number of other oil companies supported the paris deal. do you change your mind if trump wants to kill it? bob: not at all. not at all. we have this climate initiative, we have six european oil companies, in fact pemex in mexico, we will try to continue to clean. we think gas is the clean fuel of the future. we will try to get rid of our methane emissions because that is a greenhouse gas. there will be 2 billion more

people on the planet in 2035. the world will need all forms of energy. david: the auto alliance came out with a request after the election for the new administration, asking to review all regulations at the federal level. is that something you will support? what would it mean for ford motor? mark: we will continue to support comprehensive tax reform, and to your point, we want to make sure fuel economy expectations are aligned with market reality, and we will engage in positive discussions with the administration and policy makers on what that means not only for providing jobs and economic growth here in the united states. scarlet: one of donald trump's big policy proposals is reform

corporate taxes. tax cuts are great for corporate profits, which helps gdp, but what do tax cuts do for labor, which has steadily seen its share give way to capital? bill: i think lowering corporate taxes, as i mentioned, 15%, plus or minus that level, you know, is certainly profit friendly, as much as 10%, as i mentioned. but in terms of wages, it will keep prices low and raise wages, which is a benefit for labor. i doubt it. we know, too, that if part of the plan is to lower taxes on individuals, perhaps 50% of the individual taxpayers don't pay taxes to begin with. and so, it will be much more corporate-friendly as opposed to individual and labor-friendly. and i think that is where voters that voted for trump, you know,

supposedly the populace in wisconsin, michigan, and other states, although they had no choice -- they wanted change as opposed to the status quo -- i do not think trump was the change that they really wanted. joe: people making really big bets on infrastructure, caterpillar surging on this idea that we will be building all these bridges and hospitals. what do you think about the story? jim: let's put this in perspective. the driver for commodities and construction equipment is not going to be the united states, even with an infrastructure boom. we are talking about $1 trillion over 10 years. that is $100 billion a year in infrastructure. china does that pretty much in a week. so, china is slowing down -- joe: in a maximalist scenario,

that is a small potato. jim: this is small potatoes relative to the global commodity markets, global demand, that place in beijing, not washington. scarlet: i understand it is still too early to tell, but in general, there is a sense that regulation will get rolled back. what kind of opportunity is there for someone like you who is looking for instances of corporate taxes, corruption, or wrongdoing? jim: again, i am not too sure. one of the more interesting developments politically that we have seen this year was in the congressional hearings, in the drug area and in wells fargo. in the past, you could generally rely on the republicans in both the senate and house to provide cover for business executives who were brought up. that is not what we saw in 2016. increasingly now, the the republican senate, they are the party of the working man now. corporate behavior being seen is

hurting the consumer, and it will be under a lot more scrutiny, even in this administration. ♪

♪ david: you are watching "bloomberg best." i'm david gura. it has been another week of corporate earnings reports. we begin with the results of the largest retailers. david: wal-mart out with earnings this morning, which top analysts' earnings-per-share estimates. the world's largest retailer boosted its annual forecast, helped by a gain in consumer traffic and online shopping. same-store comps slightly missed estimates. people are looking at the overall trend line on revenue. they have been largely flat or even a little bit down. is that trend turning around? shannon: currency has been a big drag outside the u.s. that has been dragging down the business outside the u.s.

in the u.s., though, we are starting to see revenue -- walmart is a humongous company. so, when we say 1%, 2%, it is on an annual basis almost half $1 trillion. 1% is nothing to sneeze at. we are starting to see it moving in the right direction. david: the online question, the core question for analysts and investors at this point -- they are showing growth, but are they keeping up with the amazons of this world? shannon: 21% growth sounds great, but to put it in comparison, obviously amazon has been churning out those numbers quarter after quarter. target, 20% growth online, so it is good, but they will have to keep that momentum up. david: target earnings and revenues are better-than-expected for the third quarter, but same-store sales did continue to slide. this is the retailer's shares have been on the upswing after since donald trump's election victory last week. joe: it is somewhat of a sigh of relief. directional trends definitely improve.

traffic was down 1%, which is not great, but last quarter was down 2%, so it definitely picked up there. profitability picked up significantly. all the different categories -- growth and e-commerce was good. but to your point, it was still a flat comp, slightly negative, to be honest. david: what happened on the online business? where are they compared to the behemoth of amazon? joe: sales growth is great, but it is still 3.5% of sales. so, you still have a very small base of business, but it was a decent contributor for them to comps, and they are seeing growth. betty: japan's biggest banks posted better-than-expected earnings last quarter, but they remain cautious. shares are surging at the tokyo open. what can we read from these big bank earnings coming out of japan? gareth: they beat analysts'

expectations by over 20% each. so on the face of it, there are pretty positive results in terms of net income. if you dig deeper into that, you can see the real core banking lending income line items were down across the board. also, fee commissions were down for all three major banks, which is disappointing if you're trying to focus on that area to make up difficulties. trade income was pretty strong, and they also booked some gains on the total as part of their efforts to step up governance. mizuho's profit was boosted by a sale of a subsidiary of the the u.k. >> merck coming at us 76 million euros. the adjusted at 1.7 euros.

the estimate here was for 1.563. so that is a be on the adjusted eps front. matt: i wonder how worried you are considering the u.s. election results about trade. are you concerned that that can affect you in 2017 and beyond? marcus: honestly, we are not particularly worried about the outcome of the election in the u.s. we do not see significant impacts on our business. the u.s. is a very important country for us. we have basically 25% of our sales and 20% of our people located in the united states, and we continue to believe that the u.s. will be a very important country and a very fair, good trading partner for us. anna: we are getting breaking numbers coming through for easyjet. full-year revenue 4.6 billion

pounds against an estimated 4.63 billion pounds. carolyn: there are no surprises with these numbers. we have had a very resilient year, a very good year. a lot of those shocks have affected that. then there was the devaluation of the pound, and then the dollar against the euro. when we look for to next year, there remains a degree of uncertainty for obvious reasons, but the issue really, i think, is that consumers are going to get brilliant value. but from an airline point of view, that means pricing will remain under pressure. and for all airlines across europe as well. yousef: is it perhaps a good time to set up a new headquarters somewhere on mainland europe? carolyn: no. it is definitely not a good time to set up a headquarters there. we will remain in the u.k. we will set up an eu operating company.

haidi: jd.com, better-than-expected third-quarter results, and this is after a plan to spin off the $7 billion services arm. rishaad: what effect does this spin-off has, and why does the market like it so much? michelle: it really drives up our margins going forward. probabilities are a major concern. investors have waited for years, so finally, the company's core income has been slightly positive this year, however, the company's position to go into this finance business has really widen the losses. this really will protect the company from a downside risk of incurring much outward expenses, and preserve the company aspects of the business.

yousef: abn amro has reported a 19% jump in the third quarter, helped by a net-interest income. it also plans to cut 1500 more jobs. let's get to that cost-cutting plan. are you responding to a tougher operating environment? kees: that is one of the reasons, of course, operating income is growing less than it did in the last couple of years. so indeed, cost control is very important. yousef: what kind of impact does donald trump's election have for the outward environment? we have seen bank stops doing a tear. is that justified? do you see anything positive for your business? kees: of course the bond markets react by increasing long-term interest rates. and a bit increased yield curve

is better for banks and a very flat yield curve. in that respect, that is a good development. yousef: zurich insurance group will cut costs by $1.5 billion from 2015 through 2019. chief executive officer mario greco, now, that news comes as the company holds an investor day today. let's go straight into one of the key lines going into the statement. $1.5 billion from 2015 through 2019. talk to me about what is driving that new plan. mario: yeah, the insurance industry has a cost issue, which is common wide in the industry. now, zurich does have this issue, so we decided to attack it in the most responsible way by reducing over the next three years $1.5 billion of our costs.

targeting 8.8 billion of costs by the end of 2018. now, it would work on the i.t. expenses, it would work on contract, it would work in procurements. we have plans to do it. we are fully confident that we will achieve it. rishaad: let's take a look at tencent's revenue, asia's biggest internet company. this is everybody's favorite here. what is driving sales? rosalind: in the third quarter, revenue grew 52% to $5.9 billion. how does tencent do that? essentially, it spends money to grow. it invests in business is like online finance, content, cloud building capabilities, and to do that, it has to spend more. so, spending included supplies in the quarter. the net income grew to $1.5

billion, which is slightly below expectations. cloud services are paying off. cloud services rose and more than tripled. revenue from the segment it calls "others," which includes cloud and payments, so it is moving into these areas on top of going into areas like music and movies as well. so, it is expanding its empire. ♪

♪ jon: if you are the fed right now, and i want to bring up the clock on the bloomberg, which everyone is familiar with i am sure, each dot represents what rates will be. a new consensus emerges. we are used to the far right coming down, down, down. are we going to see it start to drift upwards on the back of a trump presidency? david: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. here is another function you will find useful -- quic. it will give you timely topics. here is a quick take from this week. >> venezuela does not have enough food to feed its 30 million residents. it also cannot guarantee them electricity or medical supplies in its hospitals.

the country is staring down socialist evil, political unrest, and bordering on economic collapse. multiple states of emergencies have been declared. how does that happen with the largest oil reserves in the world? for years, subsidized oil bought venezuela's government, influenced abroad and at home. the collapse in oil revenue combined with a series of government missteps have many fingers pointing squarely at the unpopular president, nicolas maduro. polls suggest that it electoral officials allowed a vote, he would lose by a wide margin. the crisis started before the predecessor. chavez had a left-wing ideology. saying of george w. bush -- >> yesterday, the devil came here, and it smells of sulfur today. >> while in power, chavez

limited thousands of companies he said were not functioning in the country's interest, and he focused the entire on one thing -- producing oil. this meant that almost everything venezuela consumed besides oil needed to be imported, chavez borrowed a lot of money to fund it all. while oil prices were high, it worked. then in 2013, the first domino fell. chavez died. maduro took over for chavez, and in 2014, the second domino fell. the price of oil started to crumble. revenue from oil accounts for 95% of venezuela's export earnings. when the price of oil plummeted, venezuela found itself suddenly short on cash. the government slashed groceries and medical supplies. it also started printing money, causing inflation, which has surged into the triple digits without an end in sight. the economic freefall having exacerbated the social problems. the country's murder rate is surpassed only by honduras. citizens wait for hours to get

simple household goods, and venezuela's misery index is the highest around the world. it has gotten so bad that food shortages have prompted major riots. and president maduro is bearing the brunt of the blame. demonstrations have been held across the country, calling for maduro's ouster. maduro says it is nothing more than a coup attempt. his critics says he should resign immediately. however, some say the alternative is not much better. the opposition alliance is pushing for a new election, but it is made up of a dozen parties with no unified plan to fix the economy and no single leader to do it. with oil prices unlikely to head back to previous highs, neither maduro nor the opposition has a roadmap to fix the crisis. david: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com along with all the business news and analysis 24 hours a day. that is all for "bloomberg best"

this week. thanks for watching. i am david gura. this is bloomberg. ♪

♪ betty: talking trade -- asia-pacific leaders a donald trump must not be allowed to derail closer global integration. yvonne: china shakes at the accepted script, claiming betty: the mantle of the world free trade champion. and thousands rallied for and against the korean president as officials say park did collude over illegal access. yvonne: beijing ramps up the pressure on crown resorts with employees placed under formal arrest. this is yb