>> if i don't get donald trump, i will get hillary clinton. change. not going to >> a presidential race like done in history. with a business leader in the white house. >> it is going to be a very business from administration. >> the markets wait for the fed to move. not always patiently. >> get off of this fixation of lower interest rates providing a push for economic growth.

is plenty of reaction to the biggest deals. this is a game changer. where did money move? and why. we revisit reflections from investors and insiders. they are actually sharpening volatility. we cai of quality. we are in a low return world. those are the three most important words to remember. but i am not predicting calamity but i am sitting on a lot of cash right now. >> join us for a look back straight ahead on bloomberg's best. westin, andm david to a special edition of bloomberg west. we will review the most

important news announcement into the 16. without a doubt, one of the most globally significant event of the year was the u.s. presidential election. coverage's television of the campaign kicks off our year in review. >> let's turn to the white house. the result of super tuesday, hillary clinton took that to a big weight in the delegate count after winning seven state compared to four states for bernie sanders. and donald trump did a significant bit in the delegate cap over his opponent. states, how to the strategies change now. were no heading into a winner take all. >> the strategies change pretty radically this is why. we selected those of you do well. marco rubio really had a tough night. the establishment is really going to coalesce behind it. they are now left with this option of the we start to think

about getting behind donald have cityo we have to lawmakers think that this is not what the republican party represent. >> hillary clinton now can probably sit back and start to plan ahead to november. is that to her advantage? >> it is beneficial to her. now she has more printing. >> trump one in mississippi and michigan, does this stress the across of him to win very different areas, across distinctly different demographics? >> he has won in all areas of the u.s.. that is the thing about donald trump. he has built this wrong coalition of support. let's turn back to donald trump. cruz selling at the presidential race. what are your key takeaways from last night.

at thought that was pretty clear when trump one. trump go about healing these reps in the republican party? >> with great difficulty. i think a fair degree of assiduous as. the people around him recognize there is a lot of many to do. >> you have been pretty puzzled look about donald trump. don't we need to know what he is going to change? is he telling us what he has done? i understand question. i too have some doubts. what i also know that if i don't get donald trump, with change, not knowing change, i'm going to get hillary clinton. she has owned told you, i will shut them all, it's and i want to get off also feels. that is the most stupid statement on energy i have ever heard. >> hillary clinton became the

first woman to represent a candidate for a major u.s. political party. a historically for the u.s.. she has won a majority of states, a majority of the population. she is now the candidate of the canned -- democratic party that the she is going to have to rally around. on the donald trump side, we saw a very different donald trump last night. we saw donald trump on teleprompter, we saw scripted donald trump. what we did see was a man who was on the leash and making and a {to the republican establishment. in a campaign cycle that we look to the bishops and brutal. with deeply personal attacks between both of them against each other. you can do tow truck is good for the republican party? wish we would lay out summary to beat the clinton. we are try not to. >> i humbly and gratefully accept your nomination for the

presidency of the united states. >> as if he do about a tesco. what did he do about the federal debt? these are issues that you identify. you have to ask him specifically. you cannot affect the bureaucracy, to crack it. because a bureaucracy would tell you that you need them. you need to move slowly. you can't move slowly. >> whether are no sewers, these guys are the limit. in 2016 hasc party done a very good job of trying ofget to the actual concerns a broad-based american people. >> upon taking office, i will issue a temporary moratorium on all new agency regulation. >> on top of halting new financial regulations, trump would lower the top indial tax rates to 33%. e also cut corporate taxes from

35% to 18%. >> are we goingo get numbers like this? >> there will be scoring but i am skeptical of how accurate that scoring can be. howdon't know what the -- dynamic the economy can be. i think we are way underestimating america right now. we have been so many years in slow growth. it is beat up the growth you will get more business investment more tax revenue, it is going to make it easier to do the spending reforms that you actually need to get done. we willing on day one, work with both parties to pass the biggest investment in new, good paying jobs since world war ii. >> hillary clinton posit vision as -- is one of a more robust government that can get its hands dirty in the economy. it is a redistribution of aspect. yes tax the rich more, provide more benefits to the middle and lower class. but what she is really talking about is investing in america.

that in my mind is a progrowth agenda. night, three presidential debate schedule before the big day. one of these topics, donald trump wasn't shy to touch on was the onset. so little by doing keeping interest rates at this level. >> the fed by design was a nontransparent entity. it is designed to be that way. janet yellen is to invest up she can. it is that the process is not transparent. it is difficult for the want to discover where we are going. >> i do think clinton is trump would impact all of these deals and growth in general? ,> when you have a president let's take trump wins. when you don't know what he will say, that is the ultimate uncertainty. he is often able to control himself.

he is not going to change. >> saw the last polls shows hillary clinton retaining a moderately over donald trump. the dow gained 350 points, u.s. stocks getting over 2% with every major industry group. way, this is the first one since march 1. financial markets are making a crystal clear that they don't want to see a presidential. >> donald trump has won the state of pennsylvania extend his electron boldly. donald trump is poised to become the next president of the united states. >> week are actually at a be even moreo extraordinary. he was pennsylvania but you might also win wisconsin and michigan. .he redness on this map >> we will return to the trunk

transition later in the program. importantok back on a battle between government and business in 2016. apple's dispute with the fbi over data privacy. of next, the federal reserve was under a microscope for the entire year. still, it was often hard to tell the talks from the dumps. >> there are hawks and doves and perhaps a few chickens. wax this is bloomberg. ♪

♪ >> welcome back to bloomberg best. i'm david weston. call it the great writ debate of 2016. throughout the year, economist -- as the year progressed, the fy two he became increasingly divided on the issue.

let's take a look back at a fascinating 12 months for u.s. monetary policy. >> the rate remains unchanged. the fed like you to know that they are watching things. they see what you see and everybody can take a deep breath and stop freaking out. here are the key language to address everybody's concerns. the are closely monitoring economic commissions and financial development. assessing the invitations for the labor market and the delta risks. attake us inside the debate the fed of the how. how do you determine through 2016 do when of those rate increases. >> we don't have to do it to make that decision. be dated.will the result will be dependent on the economy. that is what is most

important. equally important is the fed scaling back. expect to readw the fed funds target by only one half of a percentage point. i don't need to tell you that it is a big change from where we were in december. >> it seems to make the stan fischer has been overruled to some extent by jerry yellen in terms of the board policy. >> all of your extraordinary policies, which are still in place to contribute to growth. other still effective? >> i think they are still affected. i think that we are providing a very accommodative policy. that you want to be edging closer and closer to something of a more normal setting. you don't get stuck in this zero rate environment to wait dependent.

>> they drafted a policy statement with a somewhat hawkish tone and that is the surprise. gone is the reference to risks posed by economics and -- development. the fed is to explain his decision to not change policy back in march. >> did you learn at the today about what the fed is going to do? >> to make, not -- much ado about nothing, they did downgrade that global condition. i suppose they didn't mention june. longhas given hard to>> to make run in the u.s. by three or four basis points. i think we will know more over the next month or tw that is as long as global equity markets and risk markets are stabilize. >> what does john wayne cap to see when he sits down at the table in june to say yes. i am arguing for i am on board for the rate hike. >> i think it would be to see a continuation of the progress we have seen over the last year.

seeing that underlie measures of move up toward 2%. i also want to see continued job gains and continued signs of the economy having good momentum. >> notes and in interest rates. no change in interest rate the fed and eight unanimous decision is holding at a quarter percentage point. what is more important is the outlook. the outlook for rate increases. the dots if you will. there is another big shift by the fed to load -- lower for longer. 3%the funds rate was cut to from 3.3%. thisis an admission that business cycle that we are in is different from what we have seen in the past and that interest rate overholt will not return to what we think of as normal? asked that is absolutely the case. the notice embellishment. when they started the dots that number one. was at 4.25. it is now at three.

we are mentally from the july decision. they are spectre to leave interest rates unchanged. >> no change in policy, no change in rates, only a few changes in the economic assessment. there is no mention of economic activity overseas or the dollar. certainly no timeframe for teacher action. if you are feeling hawkish. there is this. it's her into a statement noting that near-term risks to the economic outlook have diminished. >> it is a pretty good america central banker to this troubled world. what would be your counsel to her for september and into next year? >> i would say get off of the fixation of lower interest rates providing a push for economic growth. a messageellen has for you. she does not put a timetable on it but the economic data has improved and".

for it hase strengthened in recent months. >> when i look at where we are with the job market, i look at inflation, i look at the forecast for that, i think that it is time to move. >> i don't think that the committee is risking a lot by the cautious and gradual. i don't think we are behind the curve in terms of inflation or even risking a big financial instability event. rates,hange in interest no change. but a strong suggestion that there would be a quarter-point hike before the end of the year. you can see it of course in the dots. in 2016 withcials a benchmark rate of at least 50 points. for the first time since 2014. we are talking about almost two years. three policymakers dissented from the majority. take it as a pledge from

jeddah young that they are going to raise rates in december and nothing toward happened? towards happens? >> i think it is all confused. there are hawks and doves and perhaps a few tickets. >> seems that the more the central banks cut or hold the rates low, the more there is a bond guy. the price of the bonds go up. is the sustainable over the long term? >> no. capital areth really enjoying this environment. tople are saving every day help them build a nest a for retirement and invest a to build and an estate for the children's future. they are being harmed. division.eeing a real if the reports coming from, are you going to argue for a we hike in america? >> if the dead is consistent

with what we have been seeing then yes i would think it was still remained. it would still remain. >> the case would be compelling. surprisinge least and long time. >> no explicit signals. there were two dissents in the statement. away fore big take you? >> i think is a takeaway is that they didn't want to make any. >> to the presidential election, with the federal discussions at all? >> we learned -- if they affect underlying economic conditions. no surprise, they move up a quart of a percentage point to a and 75 basis50 an

points. is 1.4%.n projected that would make three rate hikes in 2017. not too. quest you buy into three rate increases? we want to raise interest rates three times a year. >> i think the fed took a small step beyond being just data dependent. she looked back this notion of high-pressure. could be fed that tighter than we thought otherwise. this is what moves the market. it wasn't the station just statement as the press conference. >> straight ahead on lumbered best, one of the year's most significant showdowns. apple versus the united states government on the dispute over privacy. >> i'm not sure this works in anyone's favor here. >> is a bloomberg.

-- this is bloomberg. ♪

>> story where this month, the ride sharing company will allow writers in pittsburgh to help these cars from the smartphones. >> uber has embarked on this crazy research project. they are trying to launch it right now. it is very exciting and in some of googles them ahead and tesla. even though google is still kind of scene in the reader in terms of technology. >> you are watching the bloomberg best 2016 america year in review. i'm david westin. david: apple remains the most profitable technology company. it was also the most controversial technology company. that is after it refused to comply.

from an iphone link to a terrorist attack. >> apple and the fbi have been testifying on capitol hill. >> we see it in isa's efforts to reach in this country. and using mobile messaging cap who are encrypted and tasks people to kill innocent people in the united states. it is a huge feature of the national security work in a major impediment to our counterterrorism work. >> the inability of all enforcement to access devices where a judge has determined that there is evidence in those devices that they relate to a crime whether it is murder or a sex crime is having a big impact on our ability to do our job. to project our constituents. i think it is having an overall negative impact on negative -- public safety. >> there is no middle ground. that doesn't put everybody at risk. it is not just about one song. it is about every phone. it is about the future. how do you respond to that?

>> i think in the present we have seen how we do in fact balance privacy and security every day. didn'tecently, apple our requests. they had some of the strongest security out there. >> there has to be some our requests. discussion about how to solve this problem if there is but you cannot conscript a private company such as apple to do that changes-- products. we have civil rights that prevent this sort of thing. >> the u.s. has that it may not need apple's health in a mocking the iphone of the terrorist in the san bernardino attack. just before the or are you today. the government said fuchs we may have to weigh in. we don't need you after all. if that is true, if that does work, that is substantially undermining apple's position this as that these phones are not as protective as we thought they were.

wax i think it probably did not need to do it and apple probably can do things and probably has done them in places like china. we might not have to really talk about publicly. with the department of justice is drying legal action against apple. this is after they successfully passed the san bernardino shooter. as of right now it looks like the fbi is dropping their request to have apple right additional code to circumvent the security features in the existing ios software. >> people on the apple site are going to count this as a win but is not much of a win. what you're finding out is that the product is so insecure that the people are lining up to say that we can actually provide you with access. i'm not sure that this works in anyone's favor. ofputs up a legal day reckoning and demonstrates that the iphone is not particularly secure in the first place. >> still ahead on bloomberg best, how some of the most respected investors coasted through market volatility in 2016. >> we have amped up precautions.

>> but a roundup of the biggest mergers. from deals that seem to take traffic to the market by surprise. >> this is out of left field. this is bloomberg. ♪

♪ >> is it time for yahoo! and ceo marissa mayer to face the music? activist shareholder star board value urging the company to make changes, specifically in its leadership. >> the entire board comes up for reelection this summer. this is the first shot on the way to a proxy fight. >> new leadership is a proxy for selling the core asset. >> overall on the board, management and the board are very aligned. >> would you view that as a personal failure? would you view that as a failure? >> i would say that what is good for yahoo! is good for me, and vice versa. >> at&t and verizon are both at the point where there's only so

much they can do, at least u.s.-wise, from an m&a standpoint. they can't buy another wireless network, regulators won't allow them to. they cannot buy a cable company, regulators will not allow them to. so these digital aets or content like yahoo! is probably somewhat appealing. >> verizon is buying yahoo!'s operating business for $4.83 billion in cash. guys, this is like the merger we knew was going to happen for like seven months. it finally happened. jonathan: identify the assets verizon has that can make a job of yahoo! that others could not. >> yahoo! gives us scale that takes us out of the millions and into the billions. so combining those two is already the right start for us. >> what role do you envision for yourself in this new entity? >> immediately i have got two priorities. one is seeing the transaction to the close, but also watching over the value of our asian assets and equity stakes that we have there. and then moving forward, we will

ultimately figure it out. ♪ david: welcome back to the "bloomberg best, 2016, america's year in review." i am david westin. 2015 was a record year for mergers and acquisitions. although mergers and acquisitions slowed in the first quarter of 2016, the pace picked up as the year went on. here's a look back at the biggest and most interesting deals. >> there are some big health and pharma deals that came out today. abbott laboratories buying st. jude medical at a deal valued at $25 billion. in the meantime, abbvie acquired stem centrex for $5.8 billion. >> we are starting to see of deals happen again. >> the year started with the equity market up and down. that slowed a lot of deals. january and february, the deals were ones that we were working on last year, and then we got slow. today is a busy day and health care is leading the way.

that is not a surprise. with obamacare and the push for consolidation, you're going to see more companies, whether pharmaceutical companies or health care companies, you will see a lot of consolidation going on. >> comcast tried to buy dreamworks animation at about a 50% premium over dreamworks' last close. >> this thing is a huge multiple for this company. one thing that makes it appealing is the theme park connection. >> kung fu panda and shrek are going to be at universal studios. >> exactly. they also make, you know, "how to train your dragon" and their sequels can go along with these things. there is a very clear tie-in between kids movies and the theme parks that was appealing to comcast. >> buyers proposing a blockbuster deal would create the world's biggest supplier of farm chemicals and genetically modified seeds.

bayer wants to buy monsanto's for $52 billion in cash, it represents a 20% premium to monsanto's last close. it would be the biggest takeover ever by a german company. >> if monsanto actually rejects your offer, are you ready, or do you have the capacity to increase the offer? >> we're totally convinced about the attractiveness of our offer. >> monsanto said today they are open to a deal with bayer, but the current offer of $122 a share is inadequate. a statement out today said, the current proposal significantly undervalues our company and does not adequately address or provide reinsurance for potential financing and regulatory execution risks related to this acquisition. >> do we intimate from that that they would sell at a price, and is bayer prepared to pay that price? >> i have rarely seen such a friendly rejection from the target company. >> the big deal, microsoft buying linkedin, valued at $26.2 billion. that is $196 a share, a 50% premium to linkedin's friday closing price. >> one would have thought they would go on after salesforce,

workday, but this is truly out of left field and i wouldn't have expected that. >> ic integration. see innovation. what will the process be like and how do you make sure it doesn't turn out like nokia or to some extent, even skype? >> when i think about acquisitions, i think is this something that's going to be expanding the market opportunities. this is riding the technology wave of the future? anything at the core of microsoft is something we can differentiate. this checks all those boxes. david: oracle will by netsuite in a deal valued at $9.3 billion. >> it is the least surprising acquisition in the history. >> as i understand, oracle really wanted to move into cloud. netsuite is like the original cloud company. >> founded by larry ellison.

>> netsuite is a truly cloud business, almost a side project for larry ellison run by zach nelson. it is going to be curious to see their other biddings. >> they are making a desperation move. he basically said i want that. >> walmart agreed to buy jet.com for $3 billion in cash, giving the world's largest retailer a stronger online presence. >> this is a bit of a desperate move by walmart. walmart, one year and a half ago, there market cap was double that of amazon. now they have flipped. they are at $230 billion roughly. amazon is $360 billion. >> bayer and monsanto, is third time the charm? sanford bernstein saying the number they have to hit to acquire monsanto is $135 a share. they are talking about a breakup fee and a potential price. jonathan: a step closer, how much closer? >> i believe right now bayer has , offered $1.5 billion in a termination fee. they are going to want more at monsanto because a lot of regulatory issues will,, and price always matters.

alix: bayer increased their offer. a second time. that would be $127.50 a share. and while it is well above their current share price, they seem to want even more. it is about a five dollar pickup from the original bid. >> from the original. >> the share price has dropped, so it's more attractive. what's to stop monsanto from saying we accept? >> monsanto has been clear from early on that they are not going to negotiate anything less than a number starting with the three. they want $130 minimum to try to get to the table and get a proper deal done. alix: bayer announces a deal to take over monsanto. the deal is buried at $66 billion, the biggest merger this year, and also the largest merger this year and also the largest foreign takeover by a german company. >> you feel confident you are able to do whatever is needed? >> we are blessed because this combination is one that is

highly complementary and has for the size of this transaction, a very, very low overlap. vonnie: to the big deal everyone is talking about. at&t buys time warner for $85.4 billion. >> at&t really is betting on content, we are going for something that is very aggressive that has a decent chance of regulator push back. but this is a game-changing transaction. itsegreeinto combine oil angas siness with baker hughes in a $32 billion deal. >> ge gets most of the senior positions, the chairmanship and the ceo position and baker hughes gets the vice chairmanship. but it should be noted that baker hughes shareholders get a great cash payout as well. a one-off special dividend $7.5 , billion. if you look to the shares this morning in premarket trading, at the moment, it looks like the baker hughes shareholders are much happier than ge

shareholders. >> what is going on? i would think that an election would make people slow down, be concerned, but it doesn't seem like that had any impact at all. >> the election would have mattered if equity prices would have been more volatile. one of this things about the last quarter or so is that it has been incredibly stable equity prices, at least for very large companies. a lot of these big deals typically involve some equity. but the fundamental factors -- you know, they are very strong. low growth, which is bad for most things, but good for m&a, because that's how you get growth, and very accommodating capital markets. ♪ david: coming up on "bloomberg best, america's year in review," on the whole, 2016 was not the best of times for hedge funds. but then again, it's a matter of perspective. >> is there too much money? >> $3 trillion isn't what $3 trillion was 10 years ago or 20 years ago.

david: this is bloomberg. ♪

♪ david: you are watching the "bloomberg best: 2016, america's year in review." i'm david westin. time now to revisit some of 2016's most compelling conversations with investors, financial leaders, and economists. market volatility was a theme throughout the year, especially in as a global selloff raised january, fears of a recession. it was the topic of much discussion at the world economic forum in davos. >> once again we are in the midst of a selloff. it kind of feels a little like 2009. i hope not. what does it feel like to you? >> i think it reflects the tug-of-war about the countries growing, countries that and thep growing , expectation is china won't grow as fast. >> you make it sound sensible. >> it is always sensible.

in retrospect. but i think at the end of the day, companies like ours just have to keep driving, the consumer in america continues to spend. the question is how it plays out. >> i would say that we are in an environment in which it's very important to have a well diversified -- that will include assets like gold in your portfolio. try to achieve balance in various ways. that is a whole bject abt how to do it. also i think gold at 5% of your , portfolio, 5% or 10% of your portfolio -- under the circumstances, would be a prudent thing to do. prudence is the important thing to do. the reason i'm referring to that is we have a situation where debt is money. in other words, we have a fiat , so we arestem too having problems as central banks operate. think of it as another form of cash.

when cash has 0% interest rates or less, think of it as one of those possibilities in terms of how do you create diversification? >> the first quarter for the hedge fund business has really been a very unfavorable period, in large part because when you hedge equity positions, for example, and markets turn and they go up, sometimes everything goes up and you are short. and it goes up. and then what compounded that were too few really interesting opportunities that many people were in so when they tried to recover their positions, stocks went up 100%. 200%, 300%, just for technical reasons. but stepping back fr it, t rates return inhe hedge fund business and the fee structure has discouraged some investors. so, it is highly probable that the asset class will shrink a bit.

>> what is a bit? >> we will find out. >> the hedge fund industry has grown to a gigantic industry, more than $3 trillion. it's gone from a modest sized to this gigantic industry. it is probably about the same size as the private equity industry, maybe slightly bigger. people are investing because they want higher rates of return. people think that in hedge funds, you can get better rates of return. some of these hedge funds have had problems. typically the macro funds this year, but i do think that people will realize you have very smart people, highly mobile, investing their own money aside investors and is likely they're going to , do it well over a longer time. >> is $3 trillion too much money? is there simply just too much money chasing the same set of opportunities? >> well remember, a lot of the money is being invested outside the united states, not just in the united states. $3 trillion is not what $3 trillion was 10 years ago or 20

years ago. you have about $75 trillion in assets under management around the world. so three train dollars is not big in that context. so $3 trillion is not much in that context. >> the market can no longer look to banks to make markets. so you actually have to have a much of a buyer and seller. at do instions do? they have turned to etf's. it's the easy way to add beta and -- or take risk off. paradoxically, etf's are 3% of the market. if you want to look at the size of those etf's, they are 3% of the market. we don't have any objective evidence of how much trading activity they provide in the market, but le say it is 10%, what we are hearing, and etf flows on a daily basis do move the market notably one direction or other, so you have the advent

of institutional investors who are trying to deal with market volatility using etf's and etf's are actually sharpening volatility somewhat. so what i think, that's a lot of detail. >> where do it leave you? >> what it translates to is you need to more and more portfolio , managers have to set their course and stay on their course. >> what's happening in the bond market versus the domestic u.s. economy? >> what you say is certainly right. what you see is a flight to quality. after the brexit shock, people are going for sovereign debt of the strongest countries. the feeling of risk aversion is very high and they say take me to the safest asset, those happen to be the sovereign debt of japan and germany, the united states.

and even what is interesting is that the.k. yields going down and the pound dropd 10%. you did do well in u.k. bonds if you were a non-sterling investor, but the demand for high-quality liquidity has been the story of the last two or three years. >> it's very challenging today, . we are in a low return world. those are the three most important words to remember, and how do you do your business in a low return world? you can settle for low return with characteristic safety, or you can pursue a high return. how do you get a high return in a low return world? the answer is that you have to take significant risks. >> are you comfortable taking that risk? >> well i'm a professional. , don't try this at home. i have been doing this for 38 years. we know how to do it, and what we've done in the last five years, we've operated under a mantra, move forward, but with caution. and when i say with caution for

oaktree, oaktree is a cautious investor, that means more caution than usual. so we have amped up our caution, amped up our selectivity and skepticism, all the things i said earlier were in short supply, we have increased. i think that the negative saving,mpletely stopped because you are not only -- not only saving not rewarded for saving, but penalized for saving. i don't think that's good. i also think that it has caused a huge bubble in the bond market because people have nowhere else to put their money unless they buy a beautiful piece of art like our ceiling, or some pictures or something of that nature. tom: where would you put your money now? we will get to the hedge funds later. if negative rates have distorted

the markets, if central banks have distorted the markets, how would you be exposed today into the end of the year? >> i think the only game in town are equities, and we have to play in that theater. >> you are cautious, almost as cautious as you have been at any point in your career. why? >> i am not uber-bearish. so i am not predicting calamity. but my portfolio, i'm sitting a lot of cash right now. almost 60% cash. and there are a few reasons for it. number one, just going about my day-to-day business of trying to find good stocks to buy and a handful of stocks to short. , i am finding very few longs and a lot of shorts. that bottoms up, tells me something, i think, about the markets. from the top down, i see all the major indices at or near all-time highs, complacency at very low levels. yet a very uncertain world with a wide range of outcomes.

so i predict not calamity, but i quite certain there is going am to be a lot more volatility in the world, and as a stock -- picker, icker welcome that. that's how i make money. ♪

♪ >> argentina's big win in court today. the country can now tap the international credit markets for the first time since 2001 and s holdout creditors from its default. >> lifting the injunction allows them to issue enough debt to pay off the vast majority of the noisiest judgments against them. they can tap the market and pay off the guys with the sharpest teeth and start reintegrating with the international capital markets. >> today could be the last day in office for president dilma rousseff.

brazil's senate is scheduled to hold a vote that may force her out and into impeachment trials that she looks unlikely to win. >> brazilian local debt is up 30% this year. that is the best return anywhere in the world. investors are betting, you know, we have had five months of uncertainty, five months of not knowing where brazil is going. let's get this behind us and let's move on. we can take it from there. >> the vice president is now acting president he is inheriting the worst economy brazil has seen in decades. ♪ david: welcome back to the "bloomberg best, 2016, america's year in review." i'm david westin. donald trump's victory in the u.s. presidential election was largely unexpected and the president-elect's transition has been under close scrutiny as the business community looks ahead to the new administration. >> it's going to be a very business-friendly administration. and i don't want to say it is going to be a christmas tree, but business is going to be

down there getting the kind of regulatory relief they want. in the short run, all of this is probably good for business. in the longer run, $5.8 trillion in tax cut is probably not so great for business because of inflation, interest rates, and so on. >> you are just like everyone else in your industry, and for that matter, all of finance. , and perhaps all of industry is trying to figure out what a trump presidency means to your business. >> it is a sea change. republican senate, republican house, and a president who wants to do things like infrastructure spending and will get it done. we are moving to a faster growing economy. it is the pace that we question. the pace will determine interest rates. david: breaking news now, the president-elect's cabinet is coming together. steve mnuchin confirmed. what does that appointment tell us about the treasury? usi think one thing it tells is that goldman really has a lock on the treasury. he is a loyalist and he will be someone who is definitely following the lead from the white house, maybe not so much policy of his own, but definitely following some. david: president-elect trump is

close to naming his secretary of state, and the front runner comes from the world of oil. yesterday he tweeted, "whether i chose him or not for state, rex tillerson is a world-class player and dealmaker. stay tuned." >> rex tillerson is at the very foundation. the council on foreign relations shake and quake. >> he is a very impressive guy but when we saw michael jordan go from basketball to baseball. >> i witnessed that personally. it was very ugly. >> you can be great in one area and not necessarily great in another, even somewhat related, area, so we will have to see. david: trump's cabinet is looking more like a board room than a cabinet. have you seen anything like this injection of senior business leadership into washington? what do you make of it? what will it likely lead to? >> i do know many of these people. they are obviously very successful business people. being successful in business does not mean you will be successful in government. david: former texas governor rick perry, one time

presidential candidate considered friendly to the oil industry will be nominated as , energy secretary. >> big oil is dominating this cabinet. whether it is deliberate strategy or just coincidence, it's anybody's guess. it is pretty amazing how many people from the energy sector are going to run this government. >> i think if you are going to be president, you should have the best people sitting around the table. i think it is a mistake for the american public to constantly be told if you work for an oil company, work for a bank, work for this, that that makes you bad. you want the best team. i honestly think it's a good thing, because a lot of these people are very qualified people or patriots who want to help the country. they are not going to try and help their former company. that is not what they are going to try to do. these are people with deep knowledge that hopefully will do a great job. david: that wraps up the special edition of "bloomberg best, the 2016 america's year in review." you can find more stories,

interviews, and analysis from 2016 at bloomberg.com, along with all the latest business news, 24 hours a day. thank you for watching. i'm david westin. and this is bloomberg. ♪

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