[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org >> coming up on bloomberg best, the stories that shaped the week in business around the world. another staffing change rocks the trump west wing. apple soares as it cease bright times ahead. the barrels of oil keeps rates low, and a stronger job report. the dow breaks through 22,000, so, where are stocks going from here? >> dow 30,000 is going to appen. the time to sound the warning is when everybody is making a lot of money.

>> it is a peak week for earnings season. >> we are comfortable that there is a profit earning stream that is going very well. >> we have the momentum, it is working. and i ask how goldman intends to fix its problem. >> there are several reasons in retrospect that we can look at and say gee, we may have slipped up. >> all of that ahead on bloomberg best. >> hello and welcome, i'm alix steel and this is bloomberg best. your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. the week began with the spotlight once again on the white house and a high level shake-up in the trump administration. >> anthony scaramucci has been removed from his job as white house communications director

just 10 days after he joined the team. president trump removed him from his post on the recommendation of his new chief of staff, john kelly. >> it is certainly high drama, that on general john kelly's first day on the job as chief of staff, he seems to have decided that a little bit of drama on the front and, will save him a lot of drama on the back end. a pretty swift and decisive decision prompting the exit of mr. anthony scaramucci after an incredibly short and tumultous time on the job. >> i think that anthony scaramucci, the supernova over the past week has been a huge distraction on capitol hill. i remember when the drama was going down, on the health care bill, senators were reading it -- reading his comments in the new yorker and shaking their heads. >> if john kelly comes in and actually has the authority to run the white house, that would

be a change that i think would be welcomed, frankly by both parties on capitol hill. >> apple recording third quarter results just a moment ago, and let's call it a beat here. it comes in at $1.67. the consensus was $1.57. the real focus that we need to look out was that fourth quarter revenue estimate number. came in as $49 billion to $52 billion. and this gives us a flavor of what they are expecting in times in terms of sales. >> i just got off the phone with apple ceo tim cook, and everybody wants to know, why the guidance of $49.52 billion is important to read it is above consensus. he would not talk about future products of course, but when it comes to the guidance, he said that we are happy with it. we like what we see for the

beginning of the back to school season, services setting an all-time quarterly record. he told me over the last 12 months the services business has become the size of a fortune 500 company. we are they would we have achieved that. we could not be happier. >> let's talk about china. i asked him, are the winds changing in china, are you starting to see a turnaround? he told me, the results are very encouraging in china, and we thought we would improve some, but we deproofed a bit more. he mentioned mac sales, ipad sales strong, the services -- ess extremely song strong. iphone sales are best are flat in mainland china, but ultimately, he said that they feel really good. >> president trump has signed a russia shanks than -- sanctions bill into law. he says that he has many concerns about him, writing,

the bill remains flawed because it encroaches on the executive branch's authority to negotiate. congress could not even negotiate a health care bill after seven years of talking. by limiting us, this bill makes it harder for the united is to make a good deal for the american people. >> really, his complaints are that it is encroaching on executive authority, and the second is that everyone from afghanistan, to that germany nd the eu, could be impacted by this downstream of the application of the sanctions. and that the u.s., as a result could be impacted in its ability to work with allies, and to work in a multilateral fashion with allies. the president is making this argument, bolstered by the fact that germany has spoken up and has real concerns about it. in the longer term, the president is doing two things. he is trying to give a pass to congress to rescinded, and revert to a version of the

sanctions legislation that gives them a little more wiggle room on waivers. he is also trying to send a signal to u.s. allies in russia that this was not his idea. and he is kind of stuck with it. >> the bank of england keeping ates on hold with a 0.25 rate. the vote was 6-2. the program remains unchanged, 435 billion pounds sterling. the corporate bond program remained unchanged at $10 billion sterling. they attempted to forecast, cut their growth forecast and their wage forecast aggressively as well. >> uncertainty about the eventual shape of the uk's economic relationship with the eu, weighs on the decisions of business in the households and pulse down both demand and supply. >> they cut the growth forecast, and also wage grost -- growth forecast, which was the more spriting. the market expecting some kind of cut to growth.

mark said they have seen no material evidence from households and businesses, that they weren't expecting anything but a smooth brexit. and then you would assume if they were expecting these cats to the forecast, that would predicate a more dovish start to monetary policy, but mark warns there could be more extent of tightening than what the market is currently pricing in. >> independent counsel robert mueller has convened a grand jury in washington in his investigation on the connections between the trump campaign and russia. investigation is intensifying. it is looking at president trump's businesses, the businesses of his son-in-law jared kushner as well as his campaign manager paul manafort. it is a sign that this investigation will continue, and there is going to be a cloud over the trump administration for several months to come. >> this is a big deal;

obviously, you are crowding out some really important policy decisions. the question will be, will there be any leaks from this? what will we hear about it going forward? i think the issue will be how does the president respond to all this. >> the job report as follows, job numbers, 209,000. 80,000 was the estimate. 4.2% on unemployment mbling the forecast ways 4.3%. in line with the previous month of 2.5% is the average hourly earnings. > a little bit of enthusiasm in wage growth. is it a wage growth that is enough to change yell en's dialogue into the september meeting? >> maybe not, .3, as opposed to .2,, but --obviously it is a positive, but much. jobs above $200,000, as you -- obviously that is a positive but not much. jobs before 200,000 as you

mentioned is more than expected at this point in time. it does show a rather strong economic report, but i do not think that it moves markets much. >> we would obviously like to see some wage inflation and the system, which would mean that we are putting more income in consumers pockets. when consumers have more income and we lower their tax rates on top of that, they will have more money to spend, driving more economic growth. that is what we really want to see. we need to create the jobs. we need to create the jobs by getting rid of the regulation bogging down the industry. we need to reform the tax code to incentivize companies to invest in america. we are totally committed to doing it, and we feel confident we can get that done between now and the end of the year. >> still ahead, exclusive interviews. the correia of stock justin zphrains house his bank is bracing for brexit.

and another correia discusseses the strength of italy's banking system. and coming up, more of the week's top business headlines. july was another slow month for u.s. auto sales. >> we don't see dow jones drops very often. >> this is bloomberg. ♪

>> this is bloomberg best. i am alix steel. there is a media merger that has been a long time in the making. >> discovery communchingses has agreed to by scripps network and the food knelt work. it is valued at $14.6 billion.

negotiates leverage with distributors. they tried to get this deal done about three years ago. they couldn't get together on price and other issues. i think what has happened between now and three years ago is the family said this cord cutting thing is it a risk it our business. the benefits of getting scale with another player, that really makes a lot more sense. it is a lot clearer to us now than three years ago. price helps too. they are getting a full and fair value here from discovery mixture of cash and stocks. this is a great transaction, i believe, for both companies. >> softbank's ceo is said to be continuing his pursuit of communications, after proposal to merge the cable provider with sprint was rebuffed. he is considering a plan to buy charter outright. he really wants this to work. >> he wants to do something with sprint, he failed to turn it around in the years and he has had it, and he has failed

o invest in the company. he is really refuse to go put money into the cap backs and building it out. really, it shows that he is dressing it up for sale, than anything else. his bit plan has been to merge it with t-mobile's usa, but that has not gone anywhere, so the next plan, would be to merge with chartered, but charter rebuffed them. so now the current idea is that he would go and buy chartered. then from there, use a merger with chartered to go on and merge with another deal. sprint alone doesn't zo much for anybody really. he needs to bundle it with some other kind of company. the current idea is charter. >> china's official factory gauge, dialing back a notch in july under a push by authorities to curb financial risks. >> 51.4 was the number, a

manufacturing number, as used a missing marginally, the estimate as we had in from economist. this is down from the june number which was 51.7. we also have the numbers, and they suggest that the momentum oving into the second half, is growth, pau gasol falling to some degree, but no major red flags at this stage at least. >> the u.s. has sanctioned venezuela's president, nicolas maduro. the office of foreign assets control within the treasury may the announcement here, and again, he is impersonally sanctioned by the united states. it freezes any of his assets that are subject to u.s. jurisdiction. prevents u.s. businesses from dealing with him. >> it is an individual sanction, versus what a lot of people had been speculating, the possibility of a broader economic sanction.

it is a big escalation, to sanction the president of another country. so far we tonight seen any broader sanctions, specifically against venezuela's all usinesses. >> i guess the specter here is whether or not the u.s. will do anything about oil imports, if oil imports were to be sanctioned, what effect would that have for foreign investors? >> would it be bad, yes. would it be a complication, yes? would it be a final hit to this administration? not necessarily. i think he can portray this as an attack against the country. that is why i think the u.s. government acted quite well with the sanctions. it is just showing that it is concerned about the situation, but attacking and giving maduro even more arguments i think would be not entirely rationale.

>> severing ties with qatar, and reinstating a list of 13 demands it says must he met. it comes after fresh economic data highlights the impact of the boycott on the gulf max. qatar has been forced to open new and more expensive trade deals, for importing things into the country. it seems that they are going backwards and forwards, but there was no resolution in sight. >> yes, francine, at first glance, the new causes confusion because you had the original 13 demands on that list. thoseboiled down to six broad principles. people thought the mediation effort was getting tracks. no, no. scratch that. we are back to the 13 demands originally envisions. you mentioned the economic pain. well, that is continuing to take a toll on qatar's economy. we had the net international reserves for the central bank, down 30% in june. again, one of the first real cues in terms of what has happened over the last few

weeks. >> automakers could be facing a tougher second half, u.s. auto sales came down a little bit weaker than expect the for detroit manufacturers. but japanese automakers like toith, mazda and nissan beat estimates. >> the overall demand is good, but these are the worst declines we are seen in about a year for some of these companies, so it was definitely a big surprise. we do not see double-digit drops very often, and for gm to ee it on their silverado and sierra is surprising. maybe it is just a blip, but it was a pretty ugly month for the detroit automakers, while e else is doing ok. >> bloomberg has learned that wall street regulators will rewrite the volcker rule. t originally set limits on -- what did you learn with

regard to the rewriting of the volcker rule? >> as i said, they are about to start rewriting what has been one of the major thorns on the side of wall street banks, ever since the enactment of the dodd frank act in 2010. and then the subsequent writing of this rule. it bans banks basically from investing with their own money, and investing in hedge funds and private equity. this marks the beginning of the financial deregulation movement that the trump administration has long been promising. >> let's turn to brexit, deutsche bank set to be considering a plan that would shift half of its uk's workforce to the european continent. most of the 4000 positions would move to frankfurt and berlin. this seems to be more dramatic than the other banks who are oving employees such as hsbc and j.p. morgan. why is that?

>> and seems like it will be half of deutsche bank's workforce, in what is still is, the trading heart of deutsche bank. this is a huge change, apparently, and i think the reason behind that is they have a new strategy in place focusing more on the german home market and the european continent. so it seems like they are using the brexit changes to trigger and implement further strategic adjustments, which is why it is a bigger change for many other banks. >> toyota and mazda are to acquire stakes in one another and to jointly build a $1.6 billion u.s. factor. beat st quarter estimates. is the mazda deal, does it make strategic sense? why are they doing that? >> yes, i think it makes strategic sense, we have been seeing over a number of years, a big industry trend where manufacturers are teaming up nd building alliances,

basically because of surninging costs to meet stringent things across the globe. it enables them to share more costs, and make a wider range of vehicles. >> and looks -- it looks like an interesting time to invest in factories. why now? >> it is an interesting time, the market had been going down and i think they are just using the opportunity to prepare for a stronger market recovery, when demand starts to pick up again. that way, they will have additional manufacturing capacity in place. ♪

alex : welcome back to bloomberg best, i'm alex deal.

some of europe's biggest banks reported earnings this week. we will have a round up of those results later in the show. we also sat down for exclusive conversations with several bank c.e.o.'s, including carlos from the c.e.o. of ociety generale. >> we have a strong presence in both countries, and i do not think the adaptation to a brexit scenario, which is still very unclear, is a significant change. hat we said is that we are thinking between 300 and 400 people, might have to move to paris, and we have said that we would choose paris for relocating these people. i don't think it is a big expanse, but let us wait for the real scenario; we have time

to decide when and how, so we will see when we have more clarity from the negotiation point of view. >> the bank is putting costs at about $300 per job, is that something that would be similar for your bank? >> we have not really disgusted, as i said, we are still working on the pricing. >> i wanted to talk to you about your bank, when you bought them, there was a lot of speculation about this putting you in a huge advantage compared to your other competitors. do you believe that that is the case? >> the point of the veneto bank, is to avoid systemic risk within the country. in -- the bank was the only one that could remove at all this risk in the country.

when you are told that you can move on and increasing that income or reducing cost of equity, and that is related to systemic risk. in the case of veneto banks, we were able to reduce the cost of equity, in italy, and that was in my view, an example of teamwork within a bank. this faction was in any view of a team working within a bank. the european situation, and the government in italy and those of particle because we need the approval of the parliament to finalize the transaction. that is the story. >> what are the implications for your bank, it was not a good bad deal, it was a good deal for you,? is that fair? >> it was a deal that allowed us to have capital neutral, dividend per share neutral and earnings per share good. the deal for sure is a good deal. it is a deal that can allow us

to change a part of the story growth. ructuring, so growing revenues, transforming the business models, and now we can add the story of reducing costs and restructuring. so i think in the end, it is a good deal for the shareholders and also for the customers of the bank. risk in italy could also be considered a systemic risk in year. >> up next, some of the most compelling conversations. we present two very different forecasts for equities. i talked to roy this week about big picture top, like deregulation and business sentiment and got into the tails of goldman's trading

trouble. this is bloomberg. ♪

>> this is bloomberg best, i'm alix steel. the dow keeps hitting new heights, breaking 22,000 for the first time on wednesday. but how long will bull run continue? professor jeremy siegel and bill or where billionaire investor howard marks. they expressed differing opinions this week. marks, preached caution in a conversation with erik schatzker. >> the time to sound the warning is when everybody is making a lot of money, it means that the market is going up and enthusiasm is incorporated in pricing and behavior. you cannot sound a warning after the thing has turned over nd died, so, i think that we

e a mark in which there -- a market in which there are a lot of uncertainty, returns are low, asset prices are high, and people are engaging in risky behavior. that is the kind of climate in which we should take a hard look at what we are doing and i think reduce risk. >> you have rung the alarm bell before, in thousand, as well as another time, which as you yourself has acknowledged, was a bit early. >> right. >> does that needs to reduce risk feel more urgent to you now than it does then? >> in 2000, my comment was not about the stock market, it was about the tech stocks. they really looked offbeat in those days. in 2005 it wasn't quite so urgent, but then of course the

market had another two years to run, at which time it became urgent. i wouldn't describe it as urgent today. the economy is still clipping along at a modest pace and is likely to do so. there has not been an economic boom association i don't think there has to be a bust any time soon. so i am not really commenting so much on the fundamentals. i am commenting on investor behavior and asset prices. >> dow, 30,000 will happen whether it happens before the end of this decade, i cannot doubt it. not impossible, but i think we are looking at the early 2020's r a do you -- a dow at 30,000.

>> what is your near-term forecast that you are working from jeremy? >> well, you know, at the beginning of the year i did say that 10% was possible. we are very close to that. most of it has been on the back not of the trump agenda, but of good earnings and a lower dollar. that has been very, very important for boosting earnings . i still think a corporate tax cut is coming this year. i think that that could raise after-tax earnings another 10%. i know there is a lot of pessimism after the fiasco with the health care. i actually think that makes the republicans more determined than ever to say let us get something on taxes. actually, corporate taxes is where i think there is more agreement. so i think that if we do get a corporate tax cut, and i think 2017 is still possible, that is another 10% in the market.

>> this week, i had the opportunity to sit down with goldman sachs chairman and ceo lloyd blankfein, goldman's lackluster performance lately has worried investors over the last couple of quarters. i asked him to address those oncerns. >> how can something not be wrong with it after the last two quarters? >> well, we did not make as much money, so that was wrong, that first of all, we are diversified business group, and everyone performed so well that we actually did well as a firm. our return on equity has doubled, six months had double-digit r.o.e., that being said, we did not perform very well. sik is a risk business, that we don't always perform well n. that being said, some people performing in the same environment are better than us,

and we are on the balls of our feet, and we are concerned about it. in my 35 years of doing this, there have been periods, a lot longer than this one, where we underperformed only to outperform. it has been very news worthy, not because we have been a chronic underperformer. we have been a chronic out-performer. we know what we have to do and we are doing it. it is an execution matter for us, and guess what, that is what we do. >> so, execution seems to me like it is cyclical. there are people saying that there are structural problem -- problems in the commodity business. a lot of people have dumped theirs, and you stood by yours. have you had to rethink that view now? >> well we cut back a lot, but the fact of the matter is that if we were simply bigger and had more assets, we would have made more money. that is why there was an execution issue, because we should have -- the expectation

is that we would do better, because historically we have, and we really have not. we know that there are several reasons, in retrospect, that we can look back and say we miss -- we may have slipped up. we tend to be overly weighted in our business to a client base, which is a terrific client base that well never abandon, but we were disproportionately involved in trading clients who trade a lot, such as hedge funds and others things. again, we are an investment bafpblgt the more corporate banks tend to have more business with corporate and others. that is something we should fix, and we should not have let it get that disproportionate. but we did, and we will fix it. e are in the commodities business, and commodities have been in recession. very few banks compared to us are in that business. if you look at other firms that trance act in commodities, that has been in a bit of a recession. that is a cyclical matter.

do i think that oil will always be this price, within three dollars of this price, for a long time? no, i don't think so. but still, we have to scale it to the environment that we are in. whether it is profiting with he kinds of things that we focus on, whether it is people serving we should be everybody. i cannot say that we are right all the time, because we obviously are not, but i will tell you that a good reputation for resilience, is ours, and it is our good skill set. >> i also discussed the current regulatory climate with lloyd blankfein, president trump has promised major policy changes, but will they fulfill the high expectations of the business community? he told me weigh thinks washington can deliver. >> the one thing that people

are talking about, the administration, are they going to get things? there are some things that are already getting done. you have to say there is a bit after change in sentiment and attitude. i think the way rules are implemented, the attitude of the new class of regulators that are coming in -- and again, we operate obviously in financial services, but we are a big corporate advisor in business and m&a. we get involved in every industry, and every industry is regulated. in this day, they are a lot more highly regulated than they have been. almost an instantaneous thing that in some cases doesn't need approval, sometimes it does, but doesn't need regulations, is the way existing laws are implemented annual the attitude towards it. i think we are already witnessing a change in sentiment.

talking about regulation, we heard the office of the controler of the currency is starting an official process of what companies like yours want to see rolled back. an you quantify what the volcker rule did, if your profits in place, what you want to roll back there? >> when they were going through financial regulation, you could relate the amount of capitals, profits, and leverage. and you can regulate activities. you can do this transaction, you can't do that kind of a transaction. was the volcker rule did imposed a state of mind test. you could take positions, but they wanted to dampen down speculation. but the line between speculation, which as a word seems very easily that we should all back off of, and market making, facilitating other people's trading, helping

your client do what he wants to do is also a risk taking activity. the line between the two is blurry. what the rule says in effect if you are taking positions, points of view, in anticipation or in connection with a specific client operation, that is good. if you are doing it away from that specific, it is not good. but if you are a market maker sitting at a desk, it is very hard to know where that distinction is. what really makes a market is a million people all at the same time buying and selling because someone thinks its going to go down and someone thinks it is going to go up, and clients join that kind of moving sidewalk that is called a mark. in practice it has been very coum better some, very hard to do. it makes people who sit on trading desks very, very nervous, and i think what is dampening has had a effect on liquidity in the

market playstation. by the way, the regulators didn't cause that. they were filling in the regulations of statutes. bru i think now that it has been in place for a while and they see how it operates, i think there is a con tense us that has to be reexamined. ♪

>> you're watching bloomberg best, i'm alex deal. it has been a busy week for corporate earning reports. let's review the biggest headlines. hsbc led off a parade of reports from european banks. >> hsbc second-quarter profits beat estimates and the bank said it will spend up. >> to $2 billion buying stocks >> we are very happy with the first half of 2017's performance. we have revenues heading in the

right direction across the major business regions. good credit control and good cost control. another $2 billion worth of buy-back we are announcing today, which over the next 12 months will make about $5.5 billion buy-back in total. >> it is shifting to a growth story, with two quarters of great numbers right now. the trading side suffered a bad quarter, as did much of wall street. but also, you had the pivoting to asia, where markets are getting higher and own growth is there. they are fewer below the line items, fewer misconduct charges. so, we are really a much better quarter than this time last year, but they are still not totally out of the woods yet. >> we have had these numbers rom the 60's, another french banking institution posting a net revenue increase of about 20% in the second quarter. one of the few investment banks that had growth in trading

revenue in the second quarter. how you managed to achieve that? >> effectively in the bond trading in the fixed income era, we had 13% rise in revenues in the second quarter in a market where most of the companies had decreased revenues. i think it is an illustration of a change in our business model. we have moved from a traditional house to a much more solution focused house, and we have been able to develop our relationship with our clients all over the world, from the asian client base, to the u.s.. it has been very successful, and this is another illustration of that success. >> the litigation issues have weighed on shares, the third-largest bank saw a 20% profit. 28% drop in more discouraging news from

commerce bank as it reports either weakest quarterly revenue since 2014 as it struggles to make money from new clients. >> definitely a very interesting set of results for commerce bank. nothing positive on revenues, but again the markets showing you that there are still interests in the banking sector. if you look at it, nothing really wrong with the results, a bit lackluster, but momentum is stalling, i think. >> with its expectation, is it just dividends? do shareholders want dividends in banks more than they ever have? >> no. i think growth is what it is about. banks will continue to relatively outperform, but certainly, this is all right -- but fatigue is settling in now for investors. >> and uncertain future, chief executive ill winters says that the overhaul of the bank is imperative. he sounded caution about the

company's growth prospects. shares falling for a third straight day even after it reported revenue gain. give me probabilities? 50, above 50, below 50? >> well, 100% it will be reviewed at the end of the year. two things are important for us. one is we are comfortable that there is a profit stream and earnings stream which is going well. we announced nearly doubled profits. the second one is making sure there is enough captain no banks who have been paying regular dividends. our situation is a little bit different. we did stop paying the dividend a while ago, and the decision to recommence it, and when we make it, we want to confidently ay it going forward. >> they raise it. business is broadly stable in

2017. the pharmaceutical's firm earnings beat in the second quarter, and the sell of older vaccines and m.s. drugs previously had been expected to roll over. my question really is how do you keep the momentum going, and will the newer drugs help you do that? >> there are some new things we are expecting. one key is our drug called dupixant. it is the first made available for that condition. we had a very strong start, which is 26 million euro sales in just two months. but looking forward we think this could be a very significant driver in our sector. >> waiting to see how bp is going to open this morning. second quarter numbers did beat estimates, but there's a kicker. analysts have been sharply reducing expectations for the company over the last couple of weeks. they have hopped over the bar,

but it is a lowered bar. the debt continues to build as its cash flow is unable to cover the cap. >> it is a very mixed bag. that is good news. they are generating a bit of cash. but the payments continue to be a drag for bp, and it is starting to differentiate from the rest of the oil majors. we had upbeet statements from shell. debt continue toss rise because of the payments. they have added $10 billion of net debt in the last 12 months. it leaves them vulnerable to another slump in oil prices. roy tinto reaping the benefits of an oil rally. they are nicking share buy back.

plus it will pay a $20 billion dividend. the company errored earnings more than doubled from a year ago. >> very strong return. $3 billion back to shareholders. that means in practical terms it was the highest, the largest dividend in the history of roy tinto. we did pretty well in an uncertain and volatile environment. now we have the momentum. the pat certain work. i can tell you the entire company is focused on to diversify our cash return for shareholders day in and day out. >> shares are swinging in late trading after reporting second quarter earnings. the electric car maker lost $1.33 a share, far less than the $1.88 analysts had expected. revenue was better than expect the at $2.8 billion. the big question now is how

much cash the company burned through right before unveiling its most affordable car yet. a xander that starts at $35,000 and has racked up more than 5,000 reservations. what are the highlights >> it was a bet across the board. she spent less than investors had feared of the model three reservations are through the roof. they have started installing the solar roof. it sounds like the fears of cannibalization are not as severe as some have said. they have seen an increase in reservations for the s and the x since the three was revealed. >> square's quarterly results topped pro ex-:s, thanks to a larger platform and increasing sales. what zo the results like? >> they beat extremely high expectations. they beat on the top line, the

bottom line. we saw gross payments volume increased as well. larger sellers continue to contribute to their platform. though added more as well. the larger sellers have more money to buy into their suite of soft wear services ranging delivery., and food >> we are reaching more small businesses, more independent contractors. as we said on the call, we realized recently that we were not really competing with financial institutions, banks and traditional lenders. our average loan size is $6,000. we are competing with people going to friends and family and asking for a loan. that is a massive market. ♪

>> i thought the ccrb screen up for the contract. we have a slight dip now from the first month to the second month. the problem is the rest of the curve is sharply up with sloping. if i go five years backwards and car the charts, five years the slow was down, down, down, down, down. >> srsk betting on a venezuela

default liming. the probability of missed payments over the next years has risen to 64%. the government's $3 billion of bonds due in 2022 falling to a 15-month low, trading at 42 u.s. cents on tuesday. >> this is the a.g. function. i am going to click over here to heat map. it is a cool function arcs new one we have been using, and it is yoosm. i am going to set the period to 20 years. it is interesting. what there is showing us is the degree the vehicles has moved. >> there are about 30,000 functions on the bloomberg. we enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you will fine useful. quic go. it will lead you to our quick picks where you can get fast insight into timely topics. here is a quick pick from this week.

♪

>> 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 latest business news and analysis 249 hours a day. that will be all for "bloomberg best" this week. thank you so much for watching. i am alix steel. this is bloomberg. is this a phone?

or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money.

jonathan: from new york city for our viewers worldwide, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, the u.s. payrolls report delivers. jobs increase more than expected and unemployment drops to a 16 year low. former fed chair alan greenspan says there's a bubble, but not in equities. it's in bonds. hertz leaves investors flying. -- flying blind. the auto company gives bond traders the silent treatment. we begin with a big issue. a solid jobs report the united -- in the united