♪ anna: 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 in vienna who are reaching a deal to cut oil production after weeks of negotiation. >> the market price has a 30% chance of a deal. our view was we expected a deal. one of the key reasons, the economics, not politics, but economics of the deal were incredibly compelling. anna: the trump transition continues to hold the world's attention. we dig into the latest cabinet picks from bankers to billionaires. >> our number one priority will be the economy and getting back to 3%-4% growth and focus on

things for the american worker. anna: can't we hear of the uncertain political landscape is impacting from some of the business from some of the biggest names in the investment industry and the robin hood investment conference in new york. >> we are definitely moving to a faster growing economy and he pays will determine interest rates. anna: it is all straight ahead on "bloomberg best." ♪ anna: hello, welcome. i am anna edwards. 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 the week with markets reacting to the hotly anticipating opec meeting on oil production cuts in vienna. >> we start with oil on the

rocks, the opec ministers trying to salvage an agreement on production cuts that saudi official city may not get a deal at wednesday's meeting crude is in vienna. crude is falling below $46 a barrel. >> saudi oil minister who said, the most important intervention is the 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. which is clearly his way of signaling to people that you have to play a part in the agreement, saudi arabia we will not do all the work on our own. and we may be willing to work. anna: traversing losses after the minister said he is hopeful for an opec deal. here's what he told reporters as he arrived in vienna. >> [indiscernible] we will deal with opec and members. to reach an agreement that is accessible to all.

>> where do we see oil trade? >> i think wednesday, the theession of the market is end of opec. i'm not saying that is the reality of it but that is it deception. we could see a sharp correction. i would not be surprised if we saw not straight away, but i 22nd. think it will be negative. >> things are still split 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 stakes poker game and they are all holding their cards very closely. >> opec's great divide. one day left until the ministers meet to finalize the production cuts and things looking shaky. russia, kazakhstan not joining talks indiana tomorrow. iraq in iran resisting calls to cut output and the minister not reaching an accord before leaving. >> the bluff is being called and

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 for that at that time. i think that has been read as a sign of 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 is low. >> oil prices off by 3% and the dust the s&p is flipping into three point 5%, around the lows of the session. the s&p is flipping into negative territory for the session. here are the headlines that caught everyone's eye. the irani oil minister says they will not cut productions and saw saudis saying they will only accept it are ready to reject a deal if iran and iraq do 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 >> 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 about participating. iran has agreed to freeze production from a theoretical level, above what it has produced, that is not a consolatory gesture. that seems to be the last hangup at this point. >> opec does reach an to cut oil output by as much as 1.2 million barrels of oil a day, that would take it to 32.5 million barrels a day. that was the original agreement that the out -- algerian oil minister proposed. opec agreed to cut output by 1.2 million barrels of oil a day to 32.5 million barrels a day, and oil resuming is climb over $50 a barrel of my over 8%. the details need to be sorted out. if that cut is enough in order

to sustain a balanced market in the first half of you said 30% 2017. chance of a deal yesterday, now did the saudis cave? we get it. did the saudis cave? is that particular? to 30% chance of a deal with that the market was priced at 30% chance of the deal. our view was we expected a deal and one of the key reasons, the economics of the deal were incredibly compelling. aside from the fact that the risks were asymmetric to begin with. the other point is they had a rebalanced market in line of sight. what they had to do was cut production and pull forward an already balanced market. why do they want to do that? the main reason his inventory normalization, not price. why do they want inventory normalization? they want backwardation. backwardation, backwardation. >> 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.

by speeding up the process, they take the $43 and $45 and turn it into a $55 price environment. that is substantially better for the revenue, but more important, it speeds up the process going into backwardation which allows them to pursue the market share strategy because it takes away the ability for producers to hatch. >> goldman sachs says oil prices may break above $60 a barrel if opec and russia fully adhere to their promises. and banks have forecast 30% to the deal happening. >> who are the winners? >> anyone of these will be benefiting from high dollar oil. there's oil prices. iran a winner, and they are not only cutting, but they are benefiting from much higher prices. everybody outside opec, think about china, a big winner. there are independent

are some of the biggest winners producers of the shale producers in the united states are some of the biggest winners here. >> when you look more closely at it, it is a 14 player game. the prisoner's dilemma. they have to adhere to it. and there are some things that would give you concern if you are a skeptic. looking at, that should at it, there are still the countries that are carved out. opec itself saying they will cut 2.5 million barrels a day, but there is not a 600,000 for non-opec. most of that russia. russia has not indicated what benchmark they will adhere to. it is unclear if opec and non-opec will be able to follow through on the cuts. >> the fed rate hike trade is on, 178,000 jobs created but get this -- the unemployment rate falls to 4.6%, that is the lowest since august of 2007. tom: 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 do not think so. 4.6% is 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 out of the clear. when i saw the -.1 number and revision 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 week's worth of opinions on the opec deal reached in vienna. we hear from top oil executives as part of bloomberg bloomberg posey focus on energy this week. -- and investors ranging from starwood's to girls playing. up next, more of the week's the biggest spending day of the business headlines. year. this is bloomberg. ♪

♪ anna: this is "bloomberg best." i'm anna edwards. let's continue our global tour of the week's top business stories. there was a lot of was around retail at the beginning of the week. discount driven and the rise of shoppers and the rise of cyber monday. david: the holiday shopping season 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 were not the -- were at the stores. that is at least with preliminary traffic was down on reports a. black friday, but it was up on thanksgiving, so maybe more people had that post-turkey hit the mall rush. we also know that spending was

huge online come as a prices people are savvy. i can check my prices online and get the best deal and they are not necessarily interested in coming out to stores and potentially getting trampled or waiting in line david: we are in the cold. david: we are just beginning the holiday season, what are your numbers showing you so far? >> our volume 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, consumers spent less than average this year on black friday, but could cyber monday turn things around? we have the ceo of wayfarer. >> we were nervous based on things we were hearing, but frankly, i think what is happening is a big shift online. we have been seeing incredible results so far this holiday. i think the consumer is doing fine. i think the consumer is shifting more to online, more than expected. the french republican party candidate for the 20 17th

residential election and friends, before prime minister if you get the rival in the second runoff claiming 67% of , the votes, pledging to slash taxes and initiate labor reform. >> as we have seen, we have to be careful. victory downgrades because some of those who may have been tempted by a vote for marine le pen, they had been worried that some of her views on france in leaving the eu or the eurozone might actually look better now that she is a nominee. the program of francois fillon, who is considered conservative, right-wing programs may be instead of less extreme views on social issues with the european union.

vonnie: turning to president-elect donald trump's latest cabinet picks. misrepresentative tom price is slated to be the next secretary of health and human services. price could possibly oversee the repeal of the affordable care act next year, one of the top legislative priorities for congressional republicans. >> 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, outside of philadelphia. they talked about repealing obamacare. and obamacare was a big reason why many midwestern states went for donald trump. david: breaking news, the president-elect's cabinet is coming together. stigmatization and wilbur ross confirmed for the cabinet. 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

trump administration is going to be treating foreign trade deals and how they will be treating china, whether or not they will be lately mimic country currency manipulator. it is not clear that is the kind of think that they will be in charge of. david: what does that tell us about the treasury? >> i think one thing it tells us is that goldman has a lock on the treasury. that is correct. he has been a little more of a 2 million on policy of the more tightlipped. we know if trump is going to be doing this expansive infrastructure program, we know it is going to be mnuchin who will be in charge of issuing the debt, making sure they are properly funded. it is a little bit, he serves at the pleasure of the president. he will serve the budget of the president. he was the national finance chairman, so 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. vonnie: can i get your thoughts on the latest appointments? steve mnuchin for treasury and wilbur ross commerce. >> i think 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 ports and airports. a publicht to be funding, a public and private partnership, so we may have a disagreement on how to fund and invest in the structures of that on the infrastructures that we do agree is absolutely necessary. ♪ >> donald trump set to give his president-elect donald trump set to give his first major speech since being elected. the president-elect is an

indiana, along with his indiana governor and vice president elect mike pence, to announce that carrier is keeping jobs in the hoosier state. is this good economics for the government for the president-elect to intervene at such a microlevel? >> i have not found anyone who said to me, yes, this is sound economics. the principles we usually accept is you have the same rules and tax incentives for every company no matter what. that said, this is small potatoes as far as what states do. afternoon at 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 threaten to move 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 in. or we may amend nafta, so when

you try to export them out of mexico somewhere else and back in, that will be not allowed or favored. frankly, information technology, the parent company, i.t. or ut >> u.t. . >> they have a lot of business with the federal government, so we must do this appropriately. the suggestion that you want to cannibalize your air-conditioning business in the u.s., we will not look into it favorably when you want to do business with the u.s. i think that is fair as long as it is done legally and ethically. >> 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 now be the ceo to succeed him. starbucks shares in the after-hours plummeting on the announcement.

it fell 11.5% post-market and then quickly pared those losses, being down now 5.5%. do we know what howard will be doing? yes, he will remain as chairman of the board but where is his focus going to be? >> p speculation right away is going to go toward politics. he is active in democratic circles. when you hear him talk, he talks like a politician, somebody --the rates matters conversation -- race matters conversation he did. people have thrown him around as maybe a vp in the last cycle. i would not be shocked if he did something in politics. >> jennifer, kevin johnson, the new ceo. we saw the market reacting slightly negatively to the news. probably just the uncertainty of the transition, but what is the key thing to know about the new ceo? >> the key thing when you think about kevin johnson is he has the operational focus that is needed to sustain starbucks'

growth trajectory. 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 starbucks in their path they are on and in maintaining operational excellence. ♪

♪ anna: you are watching "bloomberg best." i am anna edwards. return erik schatzker sat down turn now to mexico city where bloomberg posey erik schatzker sat down with carlos slim from the bloomberg sponsor forum, mexico, the year ahead, 2017 to -- 2017. erik: 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. first, what will be the reality

of what he says is different like a candidate, like a per -- president. issuesalking about other that are very positive for mexico, like you will create 25 million jobs. that is very too many. 4%. he will try to grow be $1 trillion in 10 years. that is $100 billion a year. i think all of these issues are important for, if it happens, at least a start, it will be get for mexico. he has talked about bringing down the taxes for middle-class, 35%, that will be good for mexico. erik: middle-class americans. carlos: middle-class americans. he is focusing to increase the

consumption and investment in the u.s. and the consumption is , good for mexico. but also, if he is going to create these jobs and to do these kinds of employment, at least in the environment, they need many, many mexicans to do all of the jobs. the most qualified people to do many of the services are needed for these are mexican. mexicans and hispanics, from central america and other countries. erik: what about trade? as you know, he has taken a very aggressive position on trade with mexico. he says he wants to renegotiate nafta and get a better deal for the americans. carlos: i do not think that negotiating something with 20 years. i think it can be best for both. erik: how?

carlos: first, i think the u.s. should protect some of their jobs, especially the jobs that are strategic in the goods that have high aggregate value. i do not understand how can be produced low products with the high wages, wages of $30 an 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 too much for everything and i do not think

300 million people will be happy paying so much and having a big inflation. one of the things that is the priority of the united states, like other presidents, is the interests of the people. and the interest of the people is to have good jobs but also to have good prices on the things they are buying. erik: your attitude toward of the trump presidency is perhaps a little the more positive, perhaps come optimistic than some people might have thought. does his election -- carlos: i would be more worried as an american. erik: more worried as an really? american than a mexican? 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 of the united states. ♪ anna: there is much more to come on "bloomberg best." straight ahead, global leaders and investors weigh in on the changing political landscape.

this is bloomberg. ♪

♪ anna: this is "bloomberg best." i'm anna edwards. time now to reduce it some of -- revisit some of the week's most interesting interviews. from brexit to president-elect donald trump, the decision-makers weigh in on what is next for global economy. >> you are like everybody else in your industry and for that matter control of finance and perhaps all of industry trying to figure out what a trump presidency means for your business. >> it is a change. the republican senate and republican house and a president who wants to do things like infrastructure spending in will get it done. we are traveling in a bigger and faster economy and it is the peso will determine interest

rates. the question is, how much freewheeling hope there is in the senate with the tea party candidate that will increase the deficit before we actually see things we can tax. that is the regulator on donald trump's fuel on the economic fire. we were going to do fine. i was very bullish on the economy with either president after the selection because we reached 4.8% unemployment and you saw a huge wage increase. companies are beginning to increase wages of all of their employees passed minimum wage. he saw companies passer profit listening to the rhetoric of the onto workers listening to the rhetoric of the nation. we will get wage increases, and that leads to more spending and we will see higher interest rates regardless. now you will see this infrastructure spending bill with a 4.8 unemployment rate. we do not have skilled workers. there are not guys to build roads, tunnels and bridges. i read the article about the

mississippi river. we are going to have to, it will take more time than the market thinks but the direction rates is clear. are going higher and will real -- real estate keep up? will the rents rise with interest rates? that is more important than the rates rising. if rates are rising because wages are going up, that is good for real estate value. also, replacement cost is going up because everything is more expensive to build. that is good for existing erik: real estate. you were bullish with either hillary clinton or donald trump? barry: i was positively sloped. now i am more positively sloped, but i am worried. i'm worried about too much piercing on already a good fire that is pretty good. erik: you are cautious, almost as cautious as you have been at any point in your career. why? bailey: i am not uber bearish

not predicting calamity, but my portfolio, but i am 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 and a handful of shorts. i am finding it a lot of longs. very few shorts. the bottom-up tells me from the top down, there is complacency at low levels, get a very uncertain world with the wide range of outcomes. i predict not calamity, but i am certain there will be more volatility in the world. as a stock picker, i welcome that. that is how i make money. erik: what are some of the factors in your mind that lend to this feeling or forecast of uncertainty? barry: i think there are a number of things, interest rates. we have been in a declining environment for two decades. erik: four of them really. barry: since july, interest

rates 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 follow britain out of the e.u.? could they break up? the general rise of populism around the world and how it is 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 the british seem to be saying, can we grab some of this saying, can we grab some of this of the signal markets in the exchange of things. do you think it is possible to cherry pick the european union and the british seem now to want to move? -- today? -- to do? >> 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. prime minister may said she would do that before the end of march of that was a formal 2017. 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 has been made clear by many european leaders. one of the fundamental principles of participating in the european union is if you to the most developed market on the planet, the single market, you must cater to those freedoms: one of which is movement of people. there will be no concession given from europe 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? >> it is impossible to say. you see, 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 that in a two-year period is probably impossible. ♪ >> they asked how he could leave the central bank, just as a potentially destabilizing trump era in the united states is about to begin. >> i would say two things. first of all, bank of mexico is a very strong institution and it has strong human capital. we work in an environment of the board of governors. my vote counts the same as my other four colleagues.

i am the individual face of the bank so that gives me certainly more presence, but when it is time to vote, my vote counts the same as the others. all of our communications are established by consensus. obviously, that gives me tranquility that the bank will be in good hands when i leave. >> is the bank prepared to raise rates further should inflation expectations continue to read -- rise above the 3% target? >> absolutely. >> because that is the mandate? >> yes. also because we have the conviction that the best way that the bank of mexico can continue to grow is by keeping financial stability and inflation expectations in line. erik: what do you think about the prospects for a significant rollback of post-crisis

regulation in the united states, under the trump administration? augustin: from what i have heard, and from what i heard from the secretary of treasury elect, if you allow me that expression. exactly. what he mentions, he stressed in having much many of his interviews, he is stressing his expression a lot on the complexity of the relation. on the fact that he has many institutions that do not even understand the folger rule, no? i am also pro-simplicity. there is a certain amount -- i

mean, you have to make sure that the potential levers you want are there with the regulation. but if we can simplify the regulation and in that way and hands compliance, i am all for it. ♪

♪ anna: you are watching "bloomberg best." i'm anna edwards. all this week, bloomberg is focusing on energy and hearing from top executives about the future of their industry. >> the market has been conditioned largely to expect something positive to come out of this meeting after two months of very strong guidance and you know, sort of a back channel, news flow, and when you actually look at it, you are right. here, hadk at the cut

familiar that day, 600 thousand barrels a day, we are talking about effectively getting back to what it was the first half of the year comes really it is tantamount to a freeze. to really cut and make a difference in the market, you need to see something north of one million barrels a day. i doubt we will see that. >> 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 talking about the demand story and suggesting things change in the united states, that the demand story is picking up? if you look at maybe they have expectations around growth based on donald trump being president. does that suggest they are having a change of heart? >> the u.s. story is encouraging but it remains to be seen. oil demands has been rather anemic. in fact the real story for , it has been 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 coincidently is similar to the number that they will be cutting, and so if you look at that, one might be tempted to ask the amount that was added , why would you be cutting exactly between november and september? anna: all this week, we are focusing on energy. the iea has said if opec cuts production, u.s. shale will put more rigs to work and flood the market with more oil. the ceo-- harold hamm of continental resources is known for being a wildcatter expanding at any cost, but this time, he says it is different. i sat down with him at oakland city earlier this month and talked about how the company plans to stay disciplined if we get a world of a barrel oil? $60 >> we would have no intention of going in and pulling a lot more rigs. at $60 oil, so we are fairly

active and we have been active through the downturn. we went 56 rigs down to 19. alix: so at 65, you're not adding 10 rigs? do you know what you would do it 65? harold: there comes a point you would add one rig or two, but certainly, at 65, you would probably be at that number. that is the band 55 to 65. , alix: what about the uncompleted wells? what is the band for that, when you start adding that back? harold: we wanted to do a couple of things. we are doing that. and that is when supply and demand balanced. that balanced in the second quarter of this year. at the end of the second quarter in 2016, as we predicted. you can see it coming and

basically calculate it out. so it balanced. that balance is there. we know that more stable prices and better prices are going to be a result of that. now, there is an inventory overhang, 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. so, we said when the balance occurred, we would follow up. alix: i want to outline how much lng has been loaded in the last year alone. where is it all going? >> it is going all around the world. what we have found is a big secular shift into cleaner burning natural gas from other sources, mostly from power generation. we seem to be displacing oil and

fire power generation and coal fire power generation worldwide. alix: you would have thought that a lot of the lng would be going to latin america, it is easy to get to, but a lot of it is going to asia. can you talk about economics of the two regions? >> yeah. 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 product headed 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 seem to ramp up as much. why not? >> they do not because of the

competition from the russian natural gas, they have lowered their natural gas cost to europe significantly because of the threat of u.s. lng. 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. i think the announcement this morning of opec cuts is near-term positive. we will wait to see how it plays out. we're in a great position. in the antarctic basin, there is 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 for future pricing, we we able to add activity. alix: a big part of that is what it does to the curve. if you look at the bloomberg curve, i have charted the curve. the green line at what it was a month ago.

you're looking at $53 oil now 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 in preparation of a 2017 program. we will continue to watch and monitor the actual actions opec takes. and the impacts on the market. when you look at the top of terms we generate in the scoop in the anarchic basin, the $50, you have strong 40% rates of return, clearly as the product price moves up, $55, $60, 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,

the iranian oil minister says he thinks prices will be firmly above $50 after the opec cuts. what would a $55 oil price meeting for shale sellers? when do they bring back production? >> we would think by the end of the year we would add 500,000 barrels a day. i think one thing is opec has acclimated itself to the fact that the u.s. really is, shale is part of the game and they expect shale to come back as part of the mix which is a different perspective from i 2014. would use that number, 300,000 to 500,000 if they are in the $50-$55 range by the end of 2017. >> money was already put to work but my question is what about the brownfield project with deepwater? what about the big international companies and their projects? do they change the game now? >> those will be much more cautious. i mean, companies have prioritized those projects.

in a way, that was the surprise that in 2014, particularly ihn opec, that would be the end of shale and they saw the u.s. as a resilient. it has had a big impact on those deepwater, complex projects, and those will be slower to come back. >> thank you so much for joining bloomberg for this interview. congratulations on this deal, the first cut in eight years. the first joint accord with nonmembers since the turn of the millennium. getting down to the wire, people think this deal was not going to happen. how did you bring everyone together? >> thank you for having me. i think i agree with you, this is a historic landmark decision. we have come a long way and i think this voyage that commenced and stopped in algiers, and

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

♪ >> the future of italy's government rattling investors. concerns that prime minister renzi will miss the key referendum is on sunday and it will bring an end to a three-week rally in european shares. here on the bloomberg, there is e.u., which allows you to check on news and data on italy

before the referendum. the top left has headlines. you can see renzi headlines from this morning. if it is approved, italy will be stronger, he says. there is also research by analysts of bloomberg intelligence on italy in europe, charts on e.u. inflation diversions, on the eurozone pmi and bank performances as well. here, want to go to the bottom handle because we are talking about political risk. the conditions of the different countries, interesting because if you look at youth unemployment, you can sort it out. italy has the third highest youth unemployment at 37% after greece and spain. in terms of banking, nonperforming loans, you expect to see italy pretty high. they are the third highest, 18% of nonperforming loans. only cyprus and greece are that is a percentage of total loans. only cyprus and greece are higher. these are things to keep in mind as we head toward the referendum.

>> there are about 30,000 >> there are about 30,000 functions on the bloomberg and we always enjoy sharing you are favorites on bloomberg television. another function you might find useful, quic, where it will take you to our quick takes where you can get fast insight into timely topics. here is a quick take from this week. >> all of these businesses have something in common. they are now owned, part owned, or about to be owned by chinese companies. chinese dealmakers have been buying up american and european 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. so, here is the situation. in 2016, chinese companies more than doubled the record $106 billion record deals they amassed in 2015, putting them close to the u.s. for the most

overseas deals. among the main concerns is whether chinese firms and their close ties to the government can pose a national security threat. the american regulator charged with monitoring these matters has been paying particular attention to technology deals. this involvement led to the collapse of chinese investments in western digital. europe, which has no such regulator, became more popular target than the u.s. for chinese deals in 2015-2016. china has been snapping up german companies at a rate of one every two weeks and the 2016. german economy minister is demanding the european union strengthen powers to nix deals or impose conditions on outside companies. here are the arguments. free-market proponents say it is unfair 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 inc. gains an unfair advantage on economic you see financing, provided by

government-backed banks. on the other hand, one report found chinese takeovers have saved many american firms from bankruptcy and most resulted in expansions. a study in germany drew similar conclusions. airs warned that chinese overseas investments could turn into a trojan horse that introduces the college texts and values -- critics country's politics and values. respond that is a cold war mentality. meantime chinese companies face , a new uncertainty. donald trump. >> they take our money, they take our jobs. and we owe them $1.6 trillion. >> u.s. regulators will be headed by trump treasury 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 the latest business news and analysis 24 hours a day. that is all for "bloomberg best." i'm anna edwards.

thank you for watching bloomberg television. ♪

♪ >> uncertainty in italy. the euro slides and polls suggest the prime minister has lost his referendum on reform. -- newattentions tensions on taiwan. >> the president elect is warning corporate america, move your production overseas and that will be a big mistake. sony'spokemon on as quietly profitable