♪ coming up on "bloomberg best," the stories that shape the week in business around the world. bloomberg television is focusing on energy. we hear from the top leaders and opec ministers preaching in vienna who are reaching age other cut oil production. >> the market price as a 30% chance of a deal. we expected a deal. one of the key reasons, the economics of the deal were compelling. >> the trump transition continues to hold the world's attention appeared at the latest cabinet -- attention. the latest cabinet picks. >> our number one priority will be the economy and getting back

to 3-4% growth and focus on things for the american worker. host: and how the uncertain political landscape is impacting business, from some of the biggest names at the robin hood investment conference. >> we're moving into a faster paceng economy has the will determine interest rates. host: it is all straight ahead on "bloomberg best". ♪ host: hello, welcome. this is bloomberg best. your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. we start with markets react in to the all production cuts in vienna. -- with oil production cuts in vienna. >> we start with oil on the

rocks, the opec ministers trying to salvage with production cuts and they may not get a deal at the meeting in vienna. crude is falling below $46 a barrel. -- is thet important saudi oil minister who said, look, it may be that we do not even need a deal, the market could do the job for us. that is his way of signaling, you have to play a part in the agreement, we will not do other work on our own. and we may be willing to work. >> oil back on the rise, reversing losses after they say they are optimistic for a deal this week. opec andl deal with members. reach an agreement that is

accessible to all. >> where do we see oil trade? >> the impression of the market is mrs. opec -- this is opec. we can see a sharp correction and it would not be surprised if we see 20's again, it will be negative. >> things are so flipped between the saudis, iraqis and arabians and until they get on board with it will cut and how much, there will not be a deal. basically right now, this is a high state perfect game -- stakes poker game and they are holding their cards very closely. anna: the great divide. one day left until the ministers meet to finalize the production cut and things looking shaky. russia, kazakhstan not joining talks and i ran resisting calls to cut output and the minister not reaching an accord before leaving. >> a bluff may be the case.

it was counterintuitive in the first two meetings in september. , that the saudis put on the table the notion that they would consider a disproportionate cut, and they were not getting anything that at that time. tom: i think that has been read as a sign of weak next -- weakness. i would not overdo it, however, because nobody within opec wants a dramatically lower price and i think the risk of it going down and staying down as low. >> oil prices off by 3% and the s&p is flipping into negative territory for the session. here are the headlines, the i romney oil minister -- irani oil minister says they were not cut, and they are ready to reject the deal if i ran and iraq to not participate. it is weighing on oil and now

started to weigh on the equity futures for the u.s. as well. >> it will come down to the saudi position and they are making it clear to everybody that all people in the group have to make some sort of gesture by participating. iran has agreed to freeze production from a theoretical level, that is not consolatory gesture. that must be the -- that is the last thing at this point. >> they reach an agreement to cut oil output by 1.2 million barrels a day, taking it to 32.5 million barrels a day. and that feel jerian oil minister -- algerian oil minister proposed. cutting its 32.5 million barrels a day, while resuming its time over $50 a barrel, up over 8%. the details need to be sorted out. if the cut is enough staying a

balanced market for the first half of 2017. you said 30% chance of a deal yesterday, now we get it? did the saudis gave? -- cave? >> our view was we expected a deal and one of the key reasons, the economics of the deal were compelling. aside from the fact that the risks were there to begin with. the other point is they had a rebalance market in line of sight. what they had to do was cut production and pulled forward and already balanced market. why do they want to do that? the reason is inventory normalization, not price. why do they want that? they want backwardadtion. >> i love it. >> our expectations were down into the $43 range, and they would spend the first half of next year around $45 a barrel.

theyeeding up the process, take the 43 and 45 and turn it into $55 price environment. that is better for revenue, but more important the it speeds up the process of going into backwardation which allows them to pursue the market share strategy and takes away the ability for producers. >> goldman sachs as oil prices may break above dollars a barrel of opec and russia fully adhere to their promises. and banks have forecast 30% to be actually happening. >> were the winners? >> anyone of these will be benefiting from high dollar oil. but are not only cutting, they are benefiting from much higher prices. everybody outside opec, think about china, big winner. they are independent producers

and the united states, some of the biggest winners right here. >> when you look more closely at it, it is a 14 player game. they have to adhere to it. and there are some things that would give you concern if you are a skeptic. opec itself, they say they will cut 2.5 million barrels a day, but there is not a 600,000 four non-opec. like russia. they have not mentioned what benchmark they will adhere to. ands unclear if opec non-opec will be but the follow-through. >> the fed rate hike trade is on, when it is 78,000 jobs created. the unemployment rate falls to 4.6%, that is the lowest since august of 2007. it certainly is better with a 4.6% unemployment rate, but it is not all clear for the american labor economy is it?

>> no, i don't think so. 4.6% in the headline grabbing number. getting as close to the lowest numbers we saw in the early part of the century, so that would be the headline. but we are not of the clear. -.1 which number and coming down from 2.8% to 2.5%, it is not as hunky-dory as the stock market thinks it is. anna: still ahead, a weeks worth of opinions on the opec deal reached in vienna. we hear from top oil executives as bloomberg focuses on energy. and investors ranging from larry stern like to flynn. and more of the week's biggest headlines. the biggest spending day of the year. this is bloomberg. ♪

♪ anna: this is "bloomberg best." i'm anna edwards. let's continue our global tour of the week's best business stories. there was buzz around retail at the beginning of the week. and the rise of cyber monday. seasonholiday shopping has officially begun with black friday leading into cyber monday today. the question is, how much the american consumer will be stepping up this year and what it will mean for the economy? what do we know about what happened over the weekend? >> fewer people at stores, traffic was down on black friday, but it was up on thanksgiving, so maybe more people had at that post turkey hit the mall rush. we know that spending was huge online, so prices are down and

people are savvy, they can check prices online. they are not necessarily interested in going to the stores and potentially getting trampled. >> we are just beginning the holiday season, what are your numbers showing you so far? >> over the weekend, we came in where we planned, obviously higher than last year. we look forward to another record-setting peak season, which we think we will see. >> it has been a tepid kickoff, consumer spending less than average this year on black friday. we talked to the ceo of wayfarer. we were nervous based on things we were hearing, but frankly i think what happened was a shift online couple we have seen in kabul result so far this holiday. -- incredible results so far this holiday. i think the attention is shifting more to online, more than expected. >> and looking at the candidates

for the election in france. the former prime minister claimed 67% of votes, wanted to/ -- slash taxes. >> we have to be careful. downgrades -- of marine le pen of becoming the next president. of course, some of those who may have been tempted by a vote for marine le pen, they have been worried. some of her views on france into leaving the eu or the eurozone might actually look better now that she is a nominee. fillonogram of francois who is considered to have less extremist views on the social issues and the issues with the european union. >> tended to president-elect

donald trump's latest cabinet picks. tom price is slated to be the next secretary of health and human services. the good possibly oversee the it affordableal of the care act. >> this is a congressman that was also a supporter of donald trump. he did appear at the gettysburg address of sorts, with vice president elect pence as well as trump. i'm sorry come outside of philadelphia -- sorry, outside of philadelphia. and obamacare was a big reason why many midwestern's rates -- states went for donald trump. >> breaking news, the president-elect's cabinet is coming together. joining us now from washington for an update on the transition is our bloomberg political reporter. >> they are being put in place

as we get an idea of how the trumpet ministers and is going to be treating foreign trade deals and how they will be treating china, whether or not they will be labeling them a currency manipulator. it is not clear, but that is the kind of thing that they will be in charge of. >> what does that tell us about the treasury? >> i think one thing it tells us is that goldman has a lock on the treasury. he has been more of a can million on policies, more tightlipped. but we know that if job is going to be doing this expansive infrastructure program, we know it is going to be the new chin it will be in mnuchin who will be in charge. he will serve at the pleasure of the president. he will be issuing trump's marching orders. he has been inside for a long time and he has a good feel for the team. he is a loyalist and i think he will be somebody that is

definitely following the lead from the white house, maybe not bringing so much policy of his own, but following donald trump. >> can i get your thoughts on the latest appointment? s? >> i think of that wilbur ross has a record of favoring investment tax credits for infrastructure construction. i believe that these kinds of giveaways or special tax breaks offer less than a full solution to the challenges we face and building more roads and bridges and airports. there should be public funding, a public and private partnership , so we may have a disagreement on how to fund and invest in the structures of that we do agree is absolutely necessary. ♪ >> donald trump said to give his first major speech since being elected. he is an indiana along with his

indiana governor and vice president elect to announce that carrier is keeping jobs in the hoosier state. is this good economics for the government to intervene at such a microlevel? >> i've that found anybody that has said this is sound economics. the principles we usually accept is you have the same rules and tax incentives for every country -- company no matter what. that said, this is small potatoes as far as what states do. i looked into the data, this is not even the biggest deal in indiana this year. >> isn't there a moral hazard created here in that other companies that want tax concessions can print to move there jobs to mexico as well? >> yes, but you can resolve that by having consistency around it, saying you do this and it has consequences for your products coming back imported or --

coming back in. or if you give them to somewhere else and they try to come back in, that will not be favored. and the parent company, it or ut -- >> ut. >> they have a lot of business with the federal government, so we must do this appropriately. you want to cannibalize your air-conditioning business in the u.s., we will not look into funding you when you want to do business with the u.s. i think that is fair. >> companies are not going to leave the united states anymore without consequences. not going to happen. >> we have breaking news, starbucks making the announcement that howard schultz is stepping down as ceo. he will be named executive chairman and kevin johnson will not be the ceo to succeed him. starbucks shares in the

plummeting on the announcement. it fell and the very quickly paired those losses being down 5.5%. do we know what howard will be doing? where is his focus going to be? >> speculation right away will go to politics. he is active in democratic circles. when you hear him talk, he talks like a politician, somebody -- the conversation he did. people have thrown him around as maybe a bp in this cycle -- vp in the cycle. >> the new ceo, we see the market reacting slightly negatively to this news club probably on the uncertainty of the transition. what is the key thing to know about the new ceo? >> the key thing when you think about kevin johnson is the has been operational focus that is needed to sustain starbucks growth.

he is an operations guy and he has been involved for several years, he has been on the board for several years. he should be able to continue to guide a starbucks adventure is maintaining operational excellence. ♪

♪ you are watching "bloomberg best." we turn to mexico city where bloomberg sat down with -- from the forum, mexico the year ahead, 2017. >> the conventional wisdom as you know is that the donald trump presidency will be bad if not terrible for mexico, what do you say? i do not think so. offirst, will be the reality

what he says is different than the candidate. issues thatg about are positive for mexico, like that he will create 25 million jobs. that is too many. 4%. he will try to grow and it will be $1 trillion in 10 years. i think all of these issues are happens, atr, if it least a start. it will be good for mexico. he has talked about bringing down the taxes for middle-class, that will be good for mexico. erik: middle-class americans. carlos: he is focusing on

consumption. the consumption is good for mexico. createf he is going to these jobs and do these kinds of it it will need of many mexicans to do the jobs. the most qualified people to do many of the services are mexicans. fromans and hispanics, central america and other countries. erik: what about trade? he has taken an aggressive position on trade with mexico. he wants to renegotiate nafta. carlos: i do not think that renegotiating is an issue. both.k it can be best for

erik: how? u.s.s: first, i think the should protect some of their strategic -- and goods that have high-value. i do not understand how can be products with the anh wages, wages of $30 hour. that is what they pay against $15 a day. that is a big difference. i think that these issues will not be competitive and they tried to do that. the cost for the american people will be too high and the consumer will pay to much for everything and i do not think 300 meal and -- 300 million

people will be so happy paying so much and having a big inflation. the priority of the united states, is the interest of the people. and the interest of the people is to have good prices on the things they are buying. erik: your attitude toward of the trump presidency is perhaps more optimistic than some people might have thought. does his election -- carlos: i would be more worried as an american. erik: really? why do you say that? carlos: he is going to close the economy, that is bad. if he is going out of nafta and other international deals, he could lose international leadership. ♪ anna: there is much more to come. straight ahead, global leaders and investors weigh in on the hanging political

landscape. this is bloomberg. ♪

♪ anna: this is "bloomberg best." i'm anna edwards. time to revisit some of the week's most adjusting interviews. pre-brexit to president-elect donald trump, the decision week -- decision-makers away on -- weigh in on what is next for the economy. >> you are like everybody else allhe industry, and perhaps of industry is trying to figure out what a trump presidency means for business. >> it is a change. the republican senate and republican house in a president that wants to do things like every structure spending. we are moving into a faster growing economy and it is the pace that will determine interest rates.

and the question, how much freewheeling hope is it there in the senate with the tea party candidate that will let us increase the deficit before we actually see things we can tax. that is the regulator on donald trump's fuel on the economic buyer. we were going to do fine. i was bullish on the economy with either president, because we reached four point you said the wage increase. companies like walmart increasing wages for their employees and you are beginning to see companies pass the profit onto workers because of the rhetoric of the nation. we were going to get more wage increases and that would lead to spending and that is good and i are in just rates would come regardless -- higher interest rates would come regardless. now we will have a spending bill with a higher interest rate. there are guys to build roads and bridges.

it willoing to have to, take more time than the market banks, but the direction is clear. rates are going higher and will real estate keep up? will the rents rise with interest rates? that is more important than the rates rising. if they are rising because of wages going up, that is good for real estate value. and cost is going up, because everything is more expensive to build. erik: you were bullish with either hillary clinton or donald trump? >> i was positively sloped. but now i am worried about too much kerosene on the already good fire. erik: you are cautious, almost as much as any point in your career. why? calamity,t predicting but my portfolio, im sitting on

a lot of cash. almost 60% of cash. there are reasons for it. number one, going about my business of finding good stocks to buy it a handful are short. i am finding it a lot of longs. and that tells me something i think about the market. from the top down i see all the major industries at or near all-time highs, complacency at low levels, yet an uncertain world with a wide range of outcomes. i predict not calamity, but i am certain there will be more volatility in the world it is a stock picker, i welcome that. that is how i make money. erik: what are some of the factors that led to this feeling of uncertainty? >> i think there are a number of we haveinterest rates, been in a declining environment for two decades. erik: four of them really. ratesce july, interest

have moved up sharply, so that would be one area i would point to. a second would be brexit and what is going on in europe. is it orderly or disorderly and could other companies followed britain out of the eu? the general rise of populism around the world into threatening the world order that has governed since world war ii. and i would point to exhibit a, the surprise election of donald trump. ♪ >> over the past few days, there is a softening in the british tone and elements of movement and now the british seemed to say, can we grab some of this for exchange of things. they think it is possible to cherry pick the european union and the british seem now to want to move. >> i think it is important to remark here that the process for britain exiting the european union will not commence until

article 50 is triggered. the premise are said that would be before the end of march 2017. that was a formal letter to the commission. after that, negotiations will start in earnest. all the comments made and speculation and rumors are only that until such time there is clarity about further horizons, you cannot decide with certainty as to what the outcome will be. >> you must have some kind of principle, you would not want the european union to be cherry picked? >> certainly not. that is a fear by many leaders. one of the benefits of participating is you want access to the markets, you must cater for those freedoms and one of those is movement of people. there will be no concession given in that regard. >> you said that two years probably is not enough, if you

had to make a guess about what the eventual date of the british leaving would be, what would it be? >> nobody has left the european union before. this is the first time. you have 50 years of regulations and legislation, dealing with the relationship between europe and the united kingdom. we joined on the same day. so to end it in a two-year period is probably impossible. >> i asked how he could leave the central bank, just as a destabilizing jump era is about to begin. >> i would say two things. it is a very strong institution and it has strong human capital. environment of counts themy vote

same as my other colleagues. i am the face of the bank, so that gives me certainly more presence, but when it is time to vote, my vote counts the same as others. communications are established by consensus. meiously, that gives tranquility that the bank will be in good hands when i leave. >> is the bank prepared to raise rates? should inflation expectations continue to read about target? >> absolutely. >> because that is the mandate? >> yes. also because we have the conviction that the best way that the bank can continue to grow is by keeping financial stability and inflation expectations in line. erik: what do you think about the prospects for a pullback of price regulation in the united

states, under the trumpet administration? -- trump administration? >> from what i have heard, is from thei have heard secretary of treasury elect, if you allow me that expression. exactly. stressed inions, he many of his interviews, he is stressing on the complexity of the relation. manye fact that he has institutions that do not even understand. i am also prove simplicity -- pro-simplicity. suren, you have to make

that the potential levers you want are there and there is regulation. given that we could simplify the regulation and good compliance, i am all for it. compliance, i am all for it. ♪

♪ anna: you are watching "bloomberg best." i'm edward -- anna edwards. we are focusing on energy and hearing from leaders about the future of their industry. >> the market has been conditioned to expect something positive to come out of this meeting after two of -- months of strong guidance. when you look at it, you are right. half alook at the cut, million a day, 600,000 barrels a

day, we are talking about getting back to what it was for the first half of the year. it could amount to a freeze, but to really cut and make a difference, you need to see something north of one million barrels a day. >> even if we only go to a freeze, is that something that is viable? what do you make of the latest comments of the saudis digesting things have changed in the u.s. and the demand story is picking up. maybe they have expectations around growth based on donald trump being president. does that for just they are having a change of heart -- suggest they are having a change of heart? >> it remains to be seen. oil demand has been anemic. it is declining. the real story for growth has been india and emerging countries. it is early to jump to conclusions about growth and demand. i think what will be more interesting to see is from

algiers to today, they have added about a half a million barrels a day. that is similar to the number they are going to be cutting. if you look at that, one might be tempted to ask, what would you be cutting exactly the amount that was added between september-november? anna: all this week we are focusing on energy. the iea has said if all production is cut, they will flood the market with more oil. the ceo of continental resources is known for being a wild character. this time, he says it is different. i sat down with him at the headquarters and asked how the company plans to stay disciplined if we get a world of $60 a barrel oil? ofwe would have no intention going in and play ot more-- pulling a l

rigs. we are fairly active and we have been active through the downturn. to 19. from 66 rigs down >> so at 65, you're not adding 10 rigs? do you know what you are doing at 65? >> at 65 you would probably be there. alix: what about the uncompleted wells? >> we wanted to do a couple of things. we were doing that. and that is when supply and demand balance. that balanced in the second quarter of this year. at the end of the second quarter in 2016, as we predicted.

you could see it coming and we calculated it out. so it balanced. it is there, we know that more stable prices and better prices are going to be a result of that. overhang,n inventory but we have seen that come down drastically, about 15% in the world so far. so that is coming down somewhat faster than people thought. balanceaid when the occurred, we would follow up. been loadedch has in the last year alone? >> it is going all around the world. what we have found is a secular shift into cleaner burning natural gas from other sources, mostly from power generation. we seem to be displacing oil and

coal power generation worldwide. thought thathave you'd be going to latin america, it is easy to get to. a lot of it is going to asia. can you talk about economics of the two regions? >> i mean, america is blessed with well over 100 years of natural gas supply, so we are very cost competitive around the world with any other sources of natural gas or liquefied natural gas, so the asians have a huge appetite and demand for power generation and we are seeing our products going to china and japan specifically. alix: when did the economics of the shipping to europe workout? you have been there a few times as ceo, but shipments do not ramp up as much. why not? >> they do not because of the competition from the russian

natural gas, they have lowered their cost to europe because of the threat of u.s. gas. it is a worldwide market and we have to compete. >> i think the strategy will remain very much focused on being in tune with the market. with the announcement this modicum of opec cuts, we will wait how -- wait to see how it plays out. we are in a good position. we have a lot of economic resiliency and good returns frankly $50 and below, so as you move up in price curve and you get more confident outlook, we will be able to add activity. >> a big part of that is what it does to the curve. take a look, we have the orange line as the current curve into the green line is what it was a month ago. it you can see the whole lean at the front and of the curve.

we're looking at $53 oil for 2017 and 2018. what do you do with that information? how does that change how many rigs you are adding? >> i would say at this point we are already adding rig activity for preparation for the 2017 program. we will continue to watch and monitor the actual actions opec takes. and when you look at in terms of $50,ating in the basin at you have strong 40% rate of return. clearly at the product price moves up, $55-six dollars, the returns improve. additional cash flows will translate to incremental activity. we will wait to make sure that we see that development. ♪ >> this headline just crossing,

prices firmly above $50 after the opec cuts. what would it be to five dollar oil price made were still shares -- shale shares? >> we would think by the end of the year we would add 500,000 barrels a day. i think opec has acclimated itself to the back at the u.s. u.s. hashat the shale as part of the game. that is a different perspective from 2014. 300,000-500,000 if we are in the $55 range by the end of 2017. >> money was already but to work -- put to work but what about deepwater? what about the big international companies? do they change the game now? >> those will be much more cautious, companies have

prioritized those projects and surprise.hat would they thought this would be the end of shale and they saw the u.s. as a resilient. those big deep waters and compex projects -- complex projects, those will be slower to come back. joining you so much for bloomberg for this interview. congratulations on this deal, the first cut in eight years. the first point accord since the turn of the millennium. getting down to the markham of people do not think the deal would happen. how did you bring people together? >> thank you for having me. i agree with you, this is a historic landmark decision. we have come a long way and i commenced inyage -- stopped in algiers and

finally docked in vienna yesterday. it was a successful voyage. a lot of consultations at a high technical level, very productive and constructive dialogue that went into it. we were laterally responsible for this historic moment. ♪

♪ anna: -- >> the future of italy's government is maddalena investors. the key referendum is on sunday and it will bring an end to a three-week rally in european shares. at the bloomberg, there is eu go, which allows you to check on

news and data on italy before the referendum. there are headlines. renzi says i hope italians will vote. there is also research by analysts on italy and europe, charts on eu inflation diversions, on the eurozone pmi and bank performances as well. we are talking about political risk. the conditions of the different countries, interesting because of you look at unemployment you can sort it out. italy has the third highest unemployment at 37% after greece and spain. in terms of thinking, nonperforming loans, you expect to see them high. they are the third highest, 18% of nonperforming loans. only cyprus and greece are higher. things to keep in mind as we go toward the referendum. >> there are about 30,000 functions on the bloomberg and

we enjoy showing you are favorites on bloomberg television. another function you might find useful, this will take you to our quick takes where you can get fast insight into timely topics. hear the quick takes from this week. >> all of these businesses have something in common. owned,e now owned, part or about to be owned by chinese companies. chinese dealmakers have been buying up companies at a record rate. for the first time, china is running neck and neck with the u.s. as the biggest buyer of overseas companies. that is making some lawmakers very nervous. here is the situation. in 2016, chinese companies more than doubled the record $106 billion record deals they amassed, putting them close to the u.s. among the main concerns is

whether chinese firms and their close ties to the government can impose a national security threat. american regulators charged with monitoring these matters are paying attention to technology deals. this involvement led to the collapse of their involvement. europe became the more popular target then the u.s. for chinese deals in 2015-2016. the chinese have been snapping up german companies. the german economy minister is demanding the european union strength empowers to impose conditions on outside companies. there are the arguments. free-market proponents say it is up for the chinese regulations make it harder for foreign companies to buy chinese firms, but the chinese companies are much more free to shop around in other countries. they argue that china gains an unfair advantage on economic financing, the divided by --

that are provided by government-backed banks. the other argument is chinese firms have saved companies from bankruptcy. a study in germany drew similar conclusions. the chinese investments turn into -- that introduces the politics and values of the country. others respond that is a cold war mentality. now chinese companies face a new uncertainty. donald trump. >> they take our money, they take our jobs, and we owed $1.6 trillion. >> u.s. regulators will be headed by the donald trump secretary. anna: 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 businesses, 24 hours a day. that is all for "bloomberg

best." i'm anna edwards. thank you for watching bloomberg television. ♪

♪ what did your family think? say, what is wrong with this man? david: as far as your relationship with steve jobs -- >> we were both there at the very beginning. david: is that more of a burden than a pleasure, to be the wealthiest man in the world? >> will you fix your time please? david: people would not recognize