>> coming up on bloomberg best, the stories that shaped the way we do business around the world. a crackdown in the kingdom. saudi arabia's move is startling investors. >> there is a sense of trepidation in the scale that's been done. >> we have to do the rule of law. we are notrump: going to lead the united states be taken advantage of anymore. >> it takes form on capitol hill. >> we have more work to be done, but this is and historic step. >> and facing a tough road

ahead, bill ackman suffers a setback. >> they won the contest fair and square. positivel be a very and please with the first year. >> that company, there is always something that can be and should be improved. >> from free trade to the gender pay get. the best conversations. >> we are hoping to model what is possible. >> we are trying to find a way to protect. >> we need to embrace the new technology. >> it is all straight ahead on bloomberg best. ♪ >> hello, and welcome. i'm rosalind chin. this is bloomberg best, the most important analysis around the

world. as markets open on monday, investors were trying to make sense of the weekend shakeup in saudi arabia. the crackdown in saudi arabia. weekend, we have effectively carried out the arrest of billionaire ministers across saudi arabia. the purge in the name of a sweeping anticorruption drive brings it closer than ever to power. and certainly for investors in the region. is beingale of what done. the enormity of the implication in terms of the influence. acrossre top names industries that have been on the business of corruption. this is a country that has historically not dealt very well with radical change.

they are consolidating power and there has been a corruption problem in saudi arabia for generations. it is important to clean that up and if the crown prince is doing that and is successful at it, it will add credibility to the saudi business posture. but if it turns out to not be transparent, and turns out to simply be a power grab, i think it is going to hurt the saudi's in the long run. stopped one of the t-rex from asia and is pushing the fair trade message very hard, slamming what he calls an unfair trade relationship between the two countries. >> for the last many decades, japan has been winning. you know that. right now, our trade with japan is not fair and it's not open. >> donald trump reaffirming that he wants free, fair, and reciprocal trade.

he was to reduce that trade deficit they have with japan in 2016. most of the comments from both edelman were on north korea where they stand side by side in the face of the threat coming from pyongyang. he said the era of strategic patience is over and that donald trump they stand in solidarity with japan against north korea. >> the anticorruption crackdown is spreading beyond the princes and officials that have been arrested. asking banks to freeze the accounts of dozens of people who aren't even under arrest. >> you're getting beyond the people arrested. a very senior people. the first report that this is going beyond that into hundreds of people. in the accounts are frozen as part of the investigation. allocatinghink about mythic and capital and you see how quickly it is confiscated,

does that not deter you to any extent? the differences between freeze and confiscation. we will see how much of what frozen is confiscated. do i think everybody in the world is ready to write checks and run their investments to saudi arabia? do saudi arabia have to do a lot on the rule of law? yes. is there a lot to do in order to become an investment mecca? yes. is it possible? yes. is it necessary? yes. overp kerry victory activist investor il acumen. preliminary results show voters voted to reelect all existing 10 adp directors. in that keeps the three nominees including ackman off the board. >> the company has three quarters. the next three quarters to demonstrate. they one parent scare -- fair

and square. .n the enterprise phase and they committed to returning to growth. it is a very tepid type of quarter and they are expecting the growth kind of in the middle of next year. shareholders don't see those commitments met by the company and we will be right back there three quarters from now, nine months from now for the neck annual meeting. >> donald trump has arrived in beijing on the third leg of his tour. on everything from america's massive trade deficit to reining in north korea. >> on trade, the deficit is a major bugbear for president trump. months,in the first 10 the trade surplus the china has with the u.s. came in at about 220 billion u.s. dollars. that will be the focus. >> the united states and china will have a more prosperous

future if we can achieve a level economic playing field. >> the important thing is to act in the spirit of mutual benefits, understanding, and seek proper settlement. boeing may have struck a deal with 37 billion u.s. dollars. the $43 billion deal and the alaskan state situation infrastructure project. there pipelines. and the deal about 12 billion. these are memorandums of understanding. >> these deals today, they won't necessarily shrink the deficit. we are talking about market act this and broader trade arrangement, broader trade agreements. on the one hand, president trump gets faced with individual deals, but there are bigger issues that need to be resolved.

>> inching closer to tax reform, the house ways and means committee passed a republican tax plan. senate republicans have also unveiled their overhaul of the attack code. a number of key differences from the house bill. >> we know we have more work to be done, but this is a historic step. >> the only areas where i can see they correspond is doubling the standard induction which is the issue for me. is one of the issues where they have similarities. there are others were they have similarities, too. they initially contemplated taking it out. there are a number of differences. 38 .5%.tax rate to the housekeeping there is at 39.6%. the house bill does not eliminate the state and local the duction's entirely. it keeps an exertion for property taxes to appease some of its members from new york, new jersey, and california. one, it goes against

what president trump and a number of republican leaders have said in terms of wanting the corporate tax cut to happen immediately because they believe it will lead to more economic growth. >> taking a major step towards the financial services sector. foreign limits on banks and asset management companies have to be lifted. they should be allowed to own a 51% stake. >> it is very good for china. market, it is an interesting and attractive market. >> it goes hand-in-hand with what they've announced. in one complaint about china, it is something that the financial system is woefully underdeveloped. to own moreanks, does not sacrifice anything and they potentially gain from it.

the question is, what kind of interest will there be in foreign bank? they have been selling chinese banks instead of buying than the last couple of years. >> both president trump and chinese president xi have delivered remarks at the asian summit in vietnam. wrecks despite risks and uncertainty, global trade and picking up.s president trump: we will not let the united states be taken advantage of anymore. trump just heard from earlier saying he's no longer interested in a multilateral trade agreement. if anyone was to do trade with the u.s., it will be a bilateral basis and has to be reciprocal. when you speak to the leader of a communist country, he's now saying that globalization is irreversible. it's all the multilateralism. that is what he has maintained all this while. speeches today show how divergent views are on trade and policy all over the world. ofech comes from the back

tpp minus the u.s.. they are trying to ensure that they get to the finish line and are struggling with that. it is the brainchild of obama and rejected by trump. the leaders are now trying to pick up the pieces. as far as we know, some provisions will be there to ensure that it is brought forward. take a look at the two speeches made by ping and trump. they are taking opposite ends of the approach to trade. rosalind: still ahead, exclusive interview with argentina's president. and u.s. treasury secretary steven mnuchin. plus, new zealand's prime minister explains how she is taking steps to close the gender pay gap. and another trove of corporate earnings reports. and up next, the week's top business headlines. the head of the new york fed

says he is stepping down. >> he is somebody that is very familiar with the plumbing of the markets. ♪

rosalind: this is bloomberg best. international news organizations based on the so-called paradise papers. documents leak from the firm the detailed holdings by many prominent figures in global business and politics including a higher ranking member of the u.s. cabinet. u.s. commerce secretary wilbur ross under fire for business ties to vladimir putin's inner circle. failing to tell congress about o withiness relationship

the russian oligarch. >> nothing to do with negotiations. i never met the people. sibor has never been under sanction, so there's nothing whatsoever wrong with the navigator having a deal with them. the perils of appointing billionaires's cabinet members. they have very complicated financial situations and you run the risk that when they disclose the financial situations, there will be pieces of information that will be left out of those documents. that is what has happened here and probably with other cabinet members. >> more details are emerging in what could be the largest tech m&a deal ever. it is prepared for a tough proxy fight with indications the did for qualcomm will be rejected.

this deal is going to be tough by all measures. >> this is not a to company deal. is buying brocade and qualcomm is buying in xp. actually an index p qualcomm deal. lot,ere is not a staggeringly. therecomplicated because is substantial cost cuts that are coming out of the equation. several segments that may have to be jettisoned due to get the regulatory approvals. qualcomm isn't particularly happy with the fact that they only got a 29% premium, so they might angle for more. >> another change of leadership

at the fed today, announcing the president bill deadly would resign in mid-2018. >> to do a search, you have to be public. it's public now. a big loss and i think he's been influential in the way he's conducted the work of the new york fed. he's been a very good vice chair. >> what do we do about the fed overall? >> he is someone familiar with the plumbing of the market because the new york fed has the lead role operating the financial markets. we don't know what it will mean for monetary policy because we don't know who'll will be selected to replace him. do president has nothing to it this selection so it's not like he's going to bring in somebody sympathetic to the administration's views. it is hard to say at this point. walt disney held talks to buy

most of 21st century fox that would've given the entertainment giant control of another studio and tv assets. besides are reportedly not talking now and it may not lead to a deal. talk to us about the conditions which made such a deal more likely. is it a defensive deal? when he think about the media industry, the u.s. is facing a lot of structural challenges. disney's in a generally good position with your assets but cable networks including espn also facing pressure. would not surprise me to see the walt disney company to talk tout it there's a way for us get bigger, better, address some of the weaknesses. 20th century fox clearly possesses a lot of high quality assets.

>> the policy consensus is wavering. ecb governing council october 26 meeting, at least for heavyweights spoke against automatically extending asset purchases if inflation doesn't pick up. >> i would've liked to see an exit. and we see in the next year how things are developing. picks up, there will be no problem, no doubt that qe has to be wound down. the problem is how to do it. committed the ecb has to extend purchases if inflation is not on a path, just under 2%. forecasts say it won't be nearly there so we were saying, let's notour guidance so we are tied to the fact that we have buy more bonds.

that we can say we will remain very accommodative. this was the debate that took place from what we reported in october. tumbling after stamping out the scent from activist investor, the beijing-based owner. making the move after installing independent directors on the board. what happened? how is this transaction made? >> the vehicle through which he held about 12% of the company, and it's getting all these super shares so natural runs the company. shall made it very clear that are ahink proxy contest waste of time, highly disruptive.

so their solution is to permanently destroy them. anyone who tries to bring a measure against the wishes of the board and the wishes of chow will find themselves almost immediately out of luck. >> at&t gearing up for a battle with the u.s. justice department, blocking the $85 billion acquisition of time warner. the trump appointed leadership is telling the country to win approval of the deal. the provision said he would not do it. could we be headed for a court battle? and if so, who wins? >> there is a possibility we are headed to a court battle. it's clearly gone up over the last 24 hours. the full extent of the litigation, i think at&t has a really good chance of winning. matter, theicular case is really weak.

and it would have pretty broad-based implications in general. i think at&t knows that going into this process, they are far more likely to be willing to litigate this and win in court out right. then accept a condition like that. ♪

rosalind: welcome back to bloomberg best. i'm rosalind chin. trade was at the forefront of the week's news and while the primary focus has been on asia, the issue is critical to many regions. with donive interview mickelthwait, we discussed the countries ongoing negotiations with the u.s. and president donald trump. subjects. two

beef. i expect to sell beef quite soon and biodiesel is something that , it came from the private sectors. both sectors have shut down to find a way because at the end, the state needs it. it is a question of finding in the american private sector a will accept to biodiesel from argentina. because the need is there. and still with the help of secretary rose, i am still optimistic that we will find a solution. >> d.c. donald trump is a free trader? >> he's trying to find a way to protect local jobs.

i may not have the same view i don'thas because think the challenges or the threats are outside. of the united states, are inside. the technological revolution. we have to be open and we have to gaintelligent enough new capabilities to our citizens to be ready to be part of that area. iran, which is creating new jobs in different places. export, doesant to america look more protectionist than the european union and china? >> similar. they are all similar. traders.

easter taking out cards. we have to keep talking. and keep negotiating. it takes a lot of time. but it's clear, when you analyze the last 20 to 30 years, what are the 20 countries that achieve more growth and reduced more poverty at home? it is clear that we have to go in that direction. we take a look back on a busy week for earnings reports. in snap.akes it stake no one knows exactly what it will look like, but no one looks better what the white house wants.

>> we agree with the idea of getting the federal government out of the business of subsidizing the states. rosalind: this is bloomberg. ♪

>> we haven't considered a second referendum. what we want to do is negotiate the process through. we don't know when the next general election will be and we don't know what point we would hopefully be in the government. what i want is parliament to be able to hold the government to account. challenge the bill as it goes through. in this bill, i have to say, is everything i disagree with in the way parliament should be run. element should be there to help -- hold the government to account. that's wrong. we can see the type of deal

on the table, there's no need -- >> we are not contemplating a second referendum. that was jeremy corbyn downplaying the possibility of a second referendum in a conversation with bloomberg's and edwards. bloomberg television also spoke this week with new zealand's prime minister, the world youngest female head of government announced this week that her administration aims to achieve pay equity for women in the public service within four years. she explained her objective to paul allen. >> we're hoping to model what is possible. our viewers think it should be possible. we think we have an issue with government departments at the moment that we want to see -- send a message that we see it as a priority. continue to send the message to a young woman.

that is not a message that can continue. >> are there concrete steps you can take? >> when it comes to our core government, we already know the size of the gap. there's already some measurement there. i think is been plenty of examples with how individual companies can weed out the gender pay gap. we look at some of these and start lamenting it with those departments. >> a pair of prominent executives spoke exclusively this week. told robinson he how they are keeping up with technological changes and sparking new competition in the industry. >> fundamentally, i think it should be as offensive as possible. taking the challenge, which means understanding there is a need to change the model and

embrace the new technology. what is atitalize the heart of the banking relationship. that is what is important, to remain a trusted partner. >> they will be creating a lot of challenges for banks and also opportunities. banks of controlled customer relationships for a long time. they are entrenched in market and could open new markets. one of the markets may be germany, which is very fragmented. providing anem opportunity for the associate to go into a market like germany and it banned your presence there. to ensure wety is adapt on the networks in france. -- you stillntage have, at this stage in europe, pretty different fragmented markets.

and the convergence will take a lot of time. in the longer term, we will see what we can do. thanks to a capacity to have an extremely streamlined process for online banking. >> it is centered on payments right now. you see that as a battle shaping up over the next two or three years? >> it is already pretty fragmented. competitionurther which will not be that easy for their clients. the heart ofe at certain business models. so that is normal. terms of brexit, we are watching closely. and from our perspective, the prudent thing is that we have to assume what has been termed as the hard exit. meeting there is really no transition and there is no sharing arrangements put in place. because we have to be open for

business on that day. and making sure we facilitate the things we need to do. flexibilitytude and . it being a global institution, we already operate in 22 of the 26th eu countries. we are on the ground and we have conductivity. it is not that we've been operating in the u.k. and going into those territories on an ad hoc basis. we in on the ground and we have the conductivity. areas where we have chosen where we think fit us well into the ago, we made a significant investment into ireland. and we have our european bank already headquartered. that gives us full passport capabilities across europe and the continent. that is done. and we are in the final stages

of deciding where certain trading settling activities will take place. it will be in late stage conversations with frankfurt on that. >> there was a report overnight that some of the u.s. banks met with wilbur ross. time is wasting. you've got to sort this thing out. we will have to move a lot of people out of london. is that true for citigroup? have the same construct. we already have a majority of our people in today's eu outside of london. significant country presence. we will not be moving as many. are preparing to do that. but it likely won't to be the same types of numbers or percentages that other people

that don't have that presence already. as the republican tax reform bill makes its way through congress, it is uncertain what provisions will survive the heated negotiations. in an extensive interview with bloomberg, steven mnuchin says once ant trump immediate corporate tax cut to 20% but would not rule out phasing in the reduction. michael mckee asked about the politically sensitive proposal to kill the obamacare individual mandate. >> the president would like that as something he has encouraged them to look at. i was at a press conference yesterday at the senate. senator cruz give a compelling pitch for that. it will be one of the things that is obviously talked about and will be considered. >> when you do the math on who will vote or the package, does it concern you obamacare will complicate things in the senate? >> it is two different issues, but the appeal of putting that

in is that it gets rid of a very unfair tax, particularly on people that can't afford it and frees up a lot of money that will go to a middle income tax cut. whether it isat, included or not included, we are determined to make sure we get the tax cuts passed. >> we are talking about getting rid of it entirely. is it acceptable or will it not get enough republican support? >> fundamentally, we agree with the idea of getting the federal government out of the business of subsidizing the states. it makes a lot of sense. having said that, several states are a very big part of the economy. new york, new jersey, connecticut, california. we are sensitive to the impact on those tapes. it is something that will continue to look with the house and senate.

to make sure middle income people also get tax cuts and that is what the house bill allows. >> the president said if anything goes wrong, i will blame steve mnuchin and gary cohn. as the president called you? mr. mnuchin: i have spoken with the president many times. we are comfortable with being accountable. it is the president's most important domestic agenda item and we will get it passed. michael: when will you get it passed? is to getn: the goal into the president's desk in december to sign. ♪

rosalind: you are watching bloomberg best. winding down but

there are plenty of companies releasing quarterly reports this week. let's begin with results from disney. disney reporting fourth-quarter earnings showing the first drop in annual result the financial crisis. profit dropped 1.2% to $1.24 from thesuffering weather hurting themepark tickets. disney also reported $140 million drop in income from investments citing higher losses at its streaming unit and hulu. continues towork struggle with some of the industry. one could argue that disney with espn at $7.5 per subscriber is most exposed to the cord cutting issues. remember the other two pieces of their business, the film and entertainment business and the movie studio is doing very well. and the parks and resorts business, and operating income perspective relative.

overall, that business has been a very strong business for disney. >> results just out this hour and the company still isn't meeting lower projections for growth. the numbers that stand out are the user numbers, which came in weaker than estimated and the revenue numbers. -- the reason the revenue missed so badly is the company has been transitioning to it often based sales model. the prices have gone way down. they're not paying the high prices. there will be taking a drastic measure to fix it.

it can appeal to a broader audience. >> after steadily falling since the march ipo, snap has gotten a boost. they revealed in an sec filing that tencent bought a 10% stake in snap-on the markets. >> here is a large and global well-regarded investor taking a stake in the company. ofgives them a little bit exposure to the u.s. market where they don't have much exposure. tencent may be saying, let's dip our toe in the social media's ace in the u.s.. >> the session closing more than 11% down after talks with the merger when t-mobile collapsed. executive sought to

reassure investors of the failure of the american telecom tie up. >> we can buy more spread shares and achieve a price. we would like to buy the two-hour limit. >> one is the future for sprint. there was a body of thought. >> there were $38 billion in debt. earnings are improving the company's cash flow positive. they managed to reverse. where some might think he's in a more advantageous position. definitely going alone.

>> the bank boosting the dutch government. the cost of risk declined, and we talk about restructuring provisions in the first order. look at what is driving this. >> last year, we announced our tengion to take costs down and serve customers better by investing in digital propositions. we expect to continue that through next year. we will take some more restructuring provisions in order to make those changes. that is part of a continuous process of change that we've been doing for the last year or so. >> shares of commerzbank are trading higher after the german lender say it may post a profit of 100 million euros for the full year in the missed of

ongoing turnaround. they are refocusing on retail and corporate climate. >> what the new strategy is to growtht will lead in assets which is what you can see already. it will ultimately lead to higher revenues. we are still losing revenue, especially due to the negative interest rate scenario. the business.down the top line for the groups are affected by this. pretty much see that the growth of the last year has produced additional revenues. yearll be a very positive of our transformation journey. >> posting third-quarter losses, after that cyber attack conducted business over the summer.

was caused nearly $300 million. >> that quarter, a special quarter emerged last year. we announced massive changes that we want to break up the company and focus on transport. today, we announced selling the last stake in the danish supermarket. see you can really start seeing the numbers and it was a disruption in the third-quarter to have the cyber attack. >> they came out with third-quarter adjustment. it beat analyst estimates, and that is the line that a lot of analysts in germany look at the operating income. the german for articles --

pharmaceuticals company confirmed that they do see the --rating profit >> we made the calibration of our expectations in our q2 earnings in august. and we are facing a little bit of a different competitive situation. and different headwinds in china. that was the main reason why we were adjusting our expectations for performance materials. it will overcome these challenges. we have not changed the guidance for the group. since august, we have also seen significant further headwinds from currencies. given this challenge on top, we say that we still confirm the guidance and will be at the lower end.

>> the company is surging after it maintained profit forecast and modest sales growth for the year. where are we in the company? >> this is an interesting point in the story. they are trying to improve the turnaround. the stocks bounced as a little bit of encouragement. they were able to reiterate their earnings guidance on the bottom line. they took the revenue guidance and sold units. it is not necessarily terrible news from an investor perspective. what they're trying to do now is grow the base business. it is their gastrointestinal business. and they are trying to be an ordinary drug company. the investigations to get through some losses. basic business. >> a slump in demand for energy equipment. and the gas division.

they talk about structural issues and some individual in. focusing on the power and gas side. when can we expect an announcement from you, joe? and how good of a job the reorganization is it going to be? company is big and it is always something that can be improved. to renewable energy concepts. so that means for us, we need to reshape and realize resources in the business. we look at what needs to be done. we will execute that and make sure it is sized for business. the threat will be between --

[indiscernible] details and specifics about how you will solve the structural target. >> bitter orange for this quarter, up seven cents despite this back -- the fact that revenue fell. it's a different story. kohl's can't get on top of its margins. >> there are companies that are structurally challenged right now. by beauty retailers as well. ♪

>> if you take a look at the function flsa go for the viewers, they can see that a fact, that, in fact, m&a has dropped for china. more m&a in the u.s. dropping around 48%. loss just see the over $1 billion. he is still the 50th wealthiest

man in the world with a net worth of 17.8 ilion dollars. 17.8 billion. a lot of there are functions on the bloomberg and we love sharing them with you. this function will he be too quick takes where you can get context and fast insight into timely topics. here is a quick pick from this week. >> stocks and bonds have bounced back since the 2008 financial crisis. the public's trust, however, hasn't recovered. not with high-speed trading, creating theals sense that it is unfair. they see leveling the playing field is unfinished post crisis cleanup. a set of european union rules will force unprecedented transparency. the eu rules will apply if it's any institution.

traders are scrambling to comply with their revision of the markets instruments. into effect in january of 2018. it is set up and the way brokers share information, sniff out the best prices, and get paid. many of the rules requiring brokers to synchronize clock and store recordings of phone calls are designed to give regulators information if things go wrong. the practice of routing trading commissions go for investment research. address worries about automated trading, algorithms must be registered with new regulators and include circuit breakers that can shut them down. can estimate it is close to $2 billion. some of the guidelines go much further than the dodd frank regulations in the u.s..

banks and brokerages say regulators are overreaching. by forcing the disclosure of prices, trading may be inhibited and market liquidity may be reduced, cutting into bank profits. authorities say the new rules will help restore stressed -- restore trust, foster competition, and encourage more independent research. just one ofat was the many quick picks you can find on the bloomberg. you can also find them at bloomberg.com along with all the latest business news and analysis 24 hours a day. best for thiserg week. thanks for watching. i'm rosalind chin. this is bloomberg. ♪

♪ >> a child of the vietnam war was sent to denmark with his family. his work interweaves the world's collective history with his own. >> he has a very personal way