♪ up, the stories that shaped the week in businesses around the world. and the in las vegas u.s. response to tragedy. >> it was an act of pure evil. >> conflict in catalonia. it has given the movement a lot of traction. >> political missteps like the ruling party. >> they are negotiating with each other and europe is waiting on the sidelines. >> damage at least puerto rico really. >> you hope for restructuring. >> they size of the gop tax

plan. >> i don't believe we will get it if there is the illumination of -- >> what it takes to lead the fed. >> knowledge and experience increases your self-confidence about what you are doing. >> bob iger and mark cuban reflect on innovation. >> it's a new world reality and we have to accept that. >> just like the net and streaming created our companies, this will as well. >> vladimir putin takes questions on donald trump and u.s. politics. is donald trump a hostage of the american political system? >> it is all straight ahead on "bloomberg best." ♪ hello and welcome, i'm david westin and this is bloomberg

best, your weekly review of the most important business news and on -- from around the world. the weekend began in horror about the nightmare in las vegas. >> the deadliest mass shooting in u.s. history. 50 people were killed and 400 transported to aerial hospitals when a gunman perched in a high-rise hotel and open fire on thousands attending an outdoor music festival. he has been identified as 64-year-old stephen paddock and >. >> police believe he was alone sugar and they have no sense of motive. >> it was an act of pure evil. to the families of the victims, we are praying for you and we are here for you. an important test for president trump and he and his

team responded with a carefully crafted and meticulously read statement that was put forward to a teleprompter and prompted the resident to not ad-lib on this offer a vision of unity and comfort and he did not -- comfort. he did not use the word terror and that's because law enforcement agencies are trying to confirm if there was a link of the suspected shooter to outside groups and number two, in the context of domestic acts of violence, the decision about whether to use the word comes loaded with political base. president trump continues his visit to put her ago to confront the devastation from hurricane maria that on. they are still without water, supplies, or electricity. >> i hate to tell you, puerto rico, but you have found our

budget out of wack. >> it's going to need money from congress and the weight of a package and private donations. they are glad to have the attention shown on this in this important humanitarian crisis they deal with logistical challenges of having a u.s. president touchdown in the mid-of all this. -- midst of all this. they think it is worth it. >> he is not there to rebuild relationships or get his hands dirty. we not see him shoveling storm but he is of roads, meeting with locals right now and this is the thing you expect from presidents after major disasters. >> president trump what to put her ago to offer relief, but when the aunt what people expected. he suggested they wiped out

puerto rican debt to get on their feet. >> you can say goodbye to that. i don't know if it is goldman sachs, butgoldman whoever it is, say goodbye to that. >> the president did not meet a bailout for puerto rican debt. he said the trump administration is going to be active in helping with the storm recovery but when it comes to debt, and that needs to go through the process congress started a year ago. >> if you look forward, there has to be debt reduction. you hope for orderly restructuring. it happened numerous times in the corporate sector and should happen here. the markets, dollar and treasury yields are lower as market digest the future of the federal reserve. trumps advisors delivered a list

of candidates. yellen,n, walsh, janet and glenn hobart and a richard davis. >> i think chair yellen is still better than even odds for the fed chair. she would reflect a continuity of the policy in place that president trump has said he likes her and admires her track record. i would see yellen, powell, maybe worse, but he might be -- might be toobut he dovish. >> potential governors who would be dovish on interest rates would pullback qe and get the curve to widen out a little bit, which would be good for markets. interviewingarts

these guys, he will go with one who is anti-regulation. the house passed their budget resolution for their fiscal year, taking a step to enacting tax reform. it allows the republican tax bill to be passed with a simple majority, protecting legislation from a democratic filibuster. how does the resolution become the easy part of this legislative process? >> you are absolutely right because now it is the heart part, trying to build consensus among republicans on a host of tax related issues, whether state and local reduction or any other issue in particular in terms of how they will pay for what most estimates are saying is a $6 trillion plan. yes, the budget advanced out of the house, a step they needed to take, and they took it. it sets the stage for them to

get into the weeds of actually crafting the tax policy and that's what we are going to see layout. setob corker yesterday the stage for right now, people are throwing around the sugar and tax cuts and nobody will eat spinach, which is how do you pay for them? that is a concern for the deficit hawks out here. they want to see an administration and republicans there down on these loopholes and tax deductions in the code and say, we will get rid of them, even if it means some have higher taxes. isthe estimates for payrolls $80,000, the previous was $156,000. the jobs report right now. >> 33,000 jobs during last month. household survey, ticking down

to 4.2% and the average hourly earnings climbing .5%, better than .3% estimated. 4.2%,y year rising .2% -- the lowest since february 2001. >> the job growth numbers are probably fine last month. 2% wage growth is the headline and janet yellen said in a healthy labor market, it is between 3% and 4%. we are just about there. chair yellen will look at this and say, my understanding is basically right. wheres is the situation analysis of the fed, a rate hike in december, as long as financial markets are firm, as long as wages rise toward 3%, they certainly are, i think the

fed is slam dunking in terms of raising rates in december. >> still ahead as we review the week on bloomberg best, conversation with larry fink, vice chair of the stanley fischer and disney ceo bob iger. vladimir putin holds court on donald trump. more of the headlines. equifax gets grilled on capitol hill. >> we learned equifax messed up. >> this is bloomberg. ♪

♪ this is bloomberg best, i am david westin. let's continue our tour with the top business stories in spain, where political crisis rages over the independence of catalonia. catalan separatist leaders

state they might claim independence later after 85% of voters backed independence. hundreds of activists were injured when they tried stopping police from shutting down the referendum. >> it really got nasty. some nasty pictures, a pr disaster for the administration is a total double whammy. wonvote happened, they yes and they wanted to continue to make this a domestic issue. it is making news over the world and giving the independent movement a lot of traction. a lot of tension during madrid and ours alone. > -- barcelona. if and when they will declare independence. they reiterated an offer about king felipe'sg condemnation of the referendum.

discuss it,pen to but it has to be within the framework of legality and the spanish constitution. orwe accept any mediation arbitration, we are setting a dangerous precedent for all of europe. >> sources within the catalan government saying a lot of numbers are getting cold feet. they are getting scared about what it can do to the economy. they want to reframe it, reworded, through how to go ahead. the site of the coalition doesn't want to do it unilaterally and they want to engage the central government in negotiation every >. >> the squeeze titans. the spanish constitutional court suspended a meeting held by caps on resident in the regional parliament on monday.

out.nfirmed plans to move they are based here but a lot of their business is in spain no they want to make sure they willt happens, still be backed up by the european central bank and part of the eurozone. that is the latest news. they will make it easier for companies to move away if they want to. >> the u.k. chancellor delivering a keynote speech at the conservative arctic conference today. instead of brexit, the address was focused on the leader of the labour party, germany court. >-- jeremy corbyn. >> he group them in with north korea, zimbabwe, and others.

the set themselves up as keeper of that brexit flame. he wanted to keep the flame alive in the u.k. and make sure he is viewed and the views of his supporters are reflected in government policy. one more reminder about whether theresa may will have to fire her secretary. >> boris johnson is falling in line on brexit. johnson said he is behind every syllable of theresa may's brexit plan. it seems as if he has fallen in line. why has he done that? we caught up with a number of mps who realize he is upsetting people he might rely on if he wants to launch a bid for leadership in the future. there could be something in it for him to back down in the short-term, but it doesn't

change the conversation of the psychodrama, who leads this party into the future. that is the french conversation in manchester. >> theresa may was interrupted by a protester. we repair for a run on the ground, some people say we spend too much time talking about jeremy corbyn's path. >> he was identified as a comedian. we know they are planning for the worst case scenario. there is no more no brexit is worse than a bad exit. >> every day there is a new message on exit and a no progress because for the u.k., they have been negotiating with each other and europe is waiting by the sidelines for them to come up with something behind which they are united. it rose to a five-year high,

signaling efforts to clean up the financial sector and the environment are not hurting growth. the fact the private gauges we have seen shows a different picture. why are we moving in opposite directions? give us color on this. what does it tell us about where the economy is going? >> for me, there is a bubble in the china's pmi. if it to trust the pmi a clear picture of the chinese economy at the moment. >> a clear picture of the chinese economy at the moment. >> u.s. auto sales were firmer last month, helped like houston, who replaced pickups and other vehicles damaged by hurricane harvey. they were on the rise as gm, ford, fiat, and chrysler beat analyst estimates. >> we have seen sales down or

flatter most of the year. when you see a month like this, you have to say placing cars that were damaged or destroyed has to be a big factor. maybe it happened sooner than analysts thought and maybe rigor because number -- maybe bigger because numbers like nissan are blowing everybody out of the water. it beat estimates by quite a bit. it has to be replacements from the storm pushing this. people didn't decide they needed to buy more cars they were buying in the first few months of the year. appeared before a house subcommittee answering questions about the massive data breach. they apologized for the security failure and it sold stock after the breach. >> it was deemed as suspicious activity. we had no idea if data was excellent traded at that time.

filtrated at that time. >> the company was not prepared to deal with the fallout of this reach. that is one of the things we learned and it is important because it will be a theme moving forward as we start to see more policy issues debated around what needs to be done to prevent these breaches. the question is, are there rules and equifax did not follow them or their need to be better rules put in place? energyergence of two talks beginning with vladimir putin and moscow, the first time a monarch from saudi arabia visited russia, coming ahead of king solomon's planned trip with president trump's next year. of this the outcomes

unity? problem in saudi arabia, one of the key allies in the region of it they look at this -- region. they look at this as a way to change their relationship to the middle east. they have succeeded in keeping prices stable, driving them up has been a success. russia willthough extend it as saudi arabia asked for until the end of next year. this is what putin indicated yesterday. there will be possible cooperation on syria, another major issue for the two countries. ♪

♪ welcome back to bloomberg

best, i'm david westin. president trump's outline for tax relief is under the microscope on capitol hill and wall street. in an exclusive interview with finkschatzker, larry discussed what he does and does not like about the proposal. >> there are a lot of merits beng proposed, but let's clear. what is being opposed is a large extension of our deficits. they will grow to $25 trillion in the next 10 years before whatever this tax reform is for tax cut is. whether this tax reform as orther one for $5 trillion $5 trillion, we all have our own schooling -- scoring, but my biggest worry on a country so dependent on foreign ownership

of debt, we have chinese and of u.s. owning 25-30% treasury debt. if you look at demographically, the domestic needs of china and japan, they will need a lot of that money. to think we could have foreign isership of 30% out 10 years doubly at that assumption. my worry is, are we going our deficits in front of a very big demographic wall? >> we are. >> it only works if we can successfully bring our economy up in this 2-2 .5% to 3%. >> that's what the president says he wants to do. that's what gary cohn says the tax proposal is designed to do. >> that happened with a tax

reform during the reagan administration. it has not happened since. it brings growth forward. >> are you saying the proposal needs to be under control? >> no. but it has to be mindful of what we need to do related to our deficit. >> what would you change? >> i'm not a tax expert. i don't believe we are going to get tax reform if there is the elevation -- elimination of the taxes. that will create a bigger deficit, so we will have to find it somewhere else. one of the ways is by raising corporate tax rates from 20% closer to 25% or 27%. that is still a net positive from what we pay today and by

and large, most investors and corporations would welcome that. >> you would be fine with that? >> we would be fine with that. we pay about 30% tax worldwide. wo, we need to make sure we are fair and just across the different sectors. i do believe what the president tax proposal as related to partnerships will help the small businesses quite a bit. haidi: coming up --david: coming up, a roundup of the news. straight ahead, more of the more interesting conversations. stan fischer is getting ready to step away from the federal reserve. who will be filling his shoes? >> the initial reaction is that

something like that happens, it closes the markets. that's terrible. david: this is bloomberg. ♪

♪ plan for as need to hard brexit. nobody knows if we will have one or not, but this is an associate that is the most -- assumption that is the most likely assumption right now. if you wait until the last moment for a financial landscape that will change drastically, there are too many risks associated with that. it would be our and the bank of england's recommendation to start planning early on because if every bank once you go through the same narrow door, it will be a problem. >> what would be the impact of a hard brexit because the u.k. is

the single largest export market for the eu? there will be applications for the economy. >> there will be implications for the economy maybe, but the biggest change i look at will be the change in the financial sector and the financial sector will be very different and also a lot less productive and efficient than it is right now. he will have changes to the business model of the financial sector. banks will move cities, part of their business models, new processes, supervision. it will be a big change to the way we do finance in europe right now. was this banks -- bundesbank's dombret. emily chang sat down with tech

investor mark cuban and bob iger. disney announced a big bet on sports streaming services. what this may mean going forward. covers 16,000 sporting events a year, 65,000 hours of programming. notedew months in 2016, i 75% of americans watch some form of espn in a month. it is still an unbelievably popular service, one that is still driving from a profitability perspective, but the world of tv has been disrupted and we feel we need to adjust accordingly. that's what we are doing by watching a streaming service and that's white we invested and -- why we invested and why we are making these extra sports on a consumer basis. emily: nfl ratings have been

mixed. giving ratings will go up? >> i think it's early for the nfl. as playoff races start to emerge and a new stars emerge or we are reminded of old stars' pre field, wethe are all facing more competition for consumers' time. whether it's the nfl or network tv or the cable channels, we are living in a new world reality and we have to accept that. it doesn't mean it is still among the most popular or successful from a business perspective, but it is the reality of our time. emily: you told bloomberg you are considering getting into bitcoin. what do you think about people like jamie dimon saying it is fraud? >> it is interesting because

there are a lot of assets whose values are based on supply and demand. you have note true ownership rights or -- no true ownership rights or voting rights. it values of function of supply and demand and does nothing else. i bought some based on a swedish exchange because it gave me liquidity. ico'sso involved with sales because block chain is a great platform for future applications. just like the net and streaming creative, i think block change will, as well. i am involved with mercury protocols, that will change messaging using block chain. emily: how big is your state in bitcoin? >> relatively small. david: speculation heated up

over possible successors to janet yellen. for anan opportune time interview with stanley fischer. in his position with tom keene, he did not comment on specific candidates, that shared insights on what the job demands. do we need a fed chair like chair yellen? i believe we have a number of candidates that have not even gone through these key chapters which are considered the canon today. >> they should read it and they should read the whole book because at the end of the theory, what happens when the interest rates gets too low? it is worth reading even today. tom: can we have a new set up with somebody like william miller? a nonmonetary fed chair who has a vice chair of your capabilities or chair yellen's

abilities? what do we need to have the expertise as chairman? terms asd in my governor and vice chair, having the basic economic theory and experience increases your self-confidence about what you are doing. is it essential? i doubt it. there are many people who could figure this out. but is it helpful? yes, very much so. tom: you enjoyed 1998 and the financial crisis and the struggles. , manye next chairman people talking about that, what is the difference of people like you in a ford standard deviation shock at the moment or set of

shots versus a normal day at the eccles building? >> the difference is, is it something you ought to do or should you let the markets take care of it? if you decided to leave it to the markets, you wait a week and see what it means. experience youhe have and your understandings of how the market works. you get that over the years. initial reaction of people is that if something bad happens, you close the markets. that's terrible. tom: in your final thoughts of london in your final speech, you talked about never say never events. what kind of chairman do we need to be steeled and ready for never say never events? >> you simply need someone who has the funds ability of a mind

to see he or she needs to take a different route at a particular moment in time or over the next year or two and someone who has also the capacity to lead a very committee tox agree with his or her thoughts. david: politicians gathered in moscow for a forum. vladimir putin took part in a panel discussion. he addressed the topic of his relationship with donald trump. our personal relations, there is none. we saw each other one time. we had some various telephone conversations on areas of mutual interest.

we also discussed the serious issue. on certain issues, we are cooperating the americans on many tracks. there has been problems, tensions. confrontations over our approaches. to findapable of coming preventing -- they have become hostage to the portugal situation. i mentioned that on many occasions. theain forces are using relations to address their problemspolitical while we are passionately awaiting for the process of this to come to an end. i do hope the fundamental mutual

interests which are not proliferation of weapons of mass distraction, commenting on -- destruction, commenting on cyber and crime, cooperation in regional conflicts. i have been working tirelessly on those conflicts coming up with solutions to these conflicts. the fight against terrorism, cybercrime. these are fundamental interests that will change the nature of our relations for the better. >> do you think donald trump is a hostage of the american legal system -- american political system? that seems to be what you just said. that his character will never be hostage to anyone. >> what would your advice be?

>> i would advise him to establish normal economic ties order to prevent -- markets and the joint interest of the american economy. they are interested in establishing well-established cooperation. they will continue promoting ties with them for the current political situation. ♪

♪ watching them at best, i'm david westin. let's return to our roundup of the top is just stories and the latest skirmish in the ongoing battle between tech companies

and european regulators. a $294on hit with million tax bill by the european union. it is the latest company to find itself in eu tax trouble. play four allowed to times -- 84 times less tax. -- four times less tax. >> one has been a regulatory review coming out of the eu for a long time in many years. there for the amazon and the google and the facebooks of the world. it is not just the tech company, it is the multicast -- multinational companies like mcdonald's. that feels more political to some of the players, but these are global layers doing business in every country around the world generating cash and for

them, it is efficient tax planning. for the regulators, they want to make sure proper payments are being made. the director of uber voted no unanimously to propose something. -- theso made changes ousted chief executive travis kalanick. this is a move toward limiting the influence of travis kalanick and benchmark, which had outsized shares before this move. with the softbank investment, there will be money put in from a couple of other firms. that will move into one h-share, one vote structure. the pushart of softbank wanted as it came into this. multi-a sheet son is stepping

into this conflict and they are trying to reach a resolution where they can invest the money and take equity stake and put together some of the tensions between these two sides. >> monarch airlines has been placed into modest ration and it flyatching a program to back to the u.k. the transport sector describes this as the biggest repatriation ever attempted in peacetime. what does it tell us about those who remain and the life out there? >> it is fair to say we might see further anchored season along the road especially along the smaller carriers. we see a drop in fuel prices, harassing sitting around $50 a ton. that allowed ryanair and easyjet to ramp up their pressure on

therch, even the likes of airline in poland. you are seeing the same kind of restructuring. rest easy about their cable package. they reached a deal that keeps espn, abc, and disney channel on million new york area subscribers. >> this shows it still has negotiating leverage in these negotiations with pay-tv providers. a lot of people were watching this deal closely as a litmus test for whether espn could still manage to get higher programming fees from the pay-tv operators, which is important for the business because they are losing subscribers and they paid billions of dollars to air live sports. this is a crucial moment for disney. they have more contract renewals

with pay-tv providers coming up and they got a lot of what they are looking for, higher rates for espn, they persuaded them to carry to college sports networks. showing signs of solid growth in the latest quarter. today,of london fell there hartline on prices conflicted with an inflationary squeeze from the week pound. the company restored its dividends and officials remain confident it can meet 3.5% to 4% operating margin. >> it is important for our shareholders. it has been three years since we paid dividends. >> why, i might ask? >> we see a clear path. we have been reducing in debt and bought back 500 million

pounds of bonds and the past year and repaid one million pounds in debt so we are focused on both of that. priceslix raising its once again, $11 a month. that is what they will popular for its most popular service plan. it is helping to pay for its ambitious budget for their tv's and movies. the market is reacting favorably. >> the lowest rate at eight dollars is going to stay the same, but the two higher plants will increase i one dollar and by two dollars. they need to raise prices because they are spending an enormous amount of money on programming, $6 billion this year, $7 billion next year. this can improve their profit margins, as well. >> 10 years ago, three classmates opened the first restaurant in washington d c.

casual chain with locations in eight cities and the same three friends still share ceo duties. one member tells the growth story on the latest edition of small to big. at sweet green, we make every single thing from scratch every day. what if we opened this restaurant? it was solving a problem we had in our own life. one in eat something healthy, affordable, convenient, and really stood for something we believed in. we started the company by going out to anyone we could ask and we raised about $300,000. 40 people conservative to that first -- contributed to that first restaurant. the first place was tiny. it forced us to simplify everything.

that really stuck with us. it wasn't that sales took off in a crazy way, but the people that knew about us loved us. soon after, we started exploring the idea of a second and third one. the first few state in the d.c. area but we knew we had to get things right before scaled it. we raised a lot of capital along the way as we build restaurants, but we never relied on institutional funding. four years ago, one of our customers friends approached us about investing more money. mission andin our that kind of funding a lot of us to invest in people and community and systems and infrastructure. it allowed us to build a brand. we invested in mobile technology and rebuild restaurants in a

responsible way. you could pick up the phone and and pick-- go online it up and get out of there. it was more than building an app. everything had to be redone. it had to be rethought because it went from one restaurant, one engine, to two. it took about two years to build that. we embraced it and figured out a way to do it the right way, not just achieve it the easy way. we are open across the country in eight cities. philadelphia, baltimore, new york, chicago, l.a., and the bay area. we will end the year with 85 restaurants. we are focused on not only building restaurants, but building technology that can make it easier for customers to

interact and eat healthier. we want to meet customers where they are. ♪

♪ >> this is the financial analysis function in the bloomberg. we see here for revenue, updates

the6.4% back in 2016, but bulk of their revenue, that is their traditional software. >> there are about 30,000 functions on the bloomberg and we enjoy showing you our favorites. maybe it will be your favorites. here is another function you will find useful. importantwe can get context and insight on important topics. here is this week's. of the worldoomers are hitting retirement age, but many of them continue to work. the generation famous for rewriting the rules are shaping the twilight of their lives. there are practical reasons to keep working. homeowners have failed to pay off their loans. some can't afford a 30 year vacation. others are not willing to give

up enriching careers. ofs the privatization welfare programs. employers offer 401(k)s in place of pensions with guaranteed benefits. but 401(k)s invested in the stock market lost a lot of value during economic downturns. here is the argument. americans are starting with little savings and that means americans work more than other wealthy nations. 18% of americans over 65 are still working, in contrast to 6% in germany, 10% in the u k, and 22% in japan. it is not just an american rubble. the birth rate is declining. that means fewer workers and people contribute to pension programs. governments feared pension programs could become insolvent without a robust workforce's of people are being encouraged to

stay on the job. most people now work as long as they want. a new reality is taking hold. when asked what age they expect to hang their hat, 10% of the be bloomberg said never. just one of the many quick takes you can find on the bloomberg. you can also find them on the bidz.com along with the latest -- bloomberg.com. that will be all. thanks for watching. i'm david westin and this is bloomberg. ♪

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