taylor: coming up on "bloomberg best," the stories that shaped the week in business around the world. mexico swings left and an historic presidential election. the japanese chancellor fence of a political challenge. >> this time, we do have a deal. haidi: china's central bank steps up to stabilize a slumping yuan. >> fed officials in general say that saw an economy operating in top gear. >> they will hike at least once more. why not more than that? because it is still sluggish. dell announces it return to public markets to they pull out

all the sports to reach a target. a steel mega deal is completed. >> consolidation becomes much more important so that we can become much more competitive. >> the loss to industry from trade wars as they already feel the pinch. >> all hell is going to break loose as far as the price. >> and, neel kashkari has a fireside chat with bloomberg's joe weisenthal. >> we could be one or two hikes away from neutral. there are word estimates of where neutral is. >> that is all ahead on "bloomberg best." ♪ haidi: hello and welcome, i'm haidi lun. this is "bloomberg best," business news analysis and interviews from blender -- bloomberg television from around the world.

let's start with a day by day look at the top headlines. voters in mexico went to the polls on sunday and when the ballots were counted, the result turned out to be historic. ♪ >> making history, he was elected mexico's first left-wing president in decades in another decisive win for populism. he was swept to power with a campaign over -- of anger over incessant crime corruption and , poverty. given the details of how the election went for lopez obredor. >> it went very swiftly and quickly and smoothly because the range by which he won was enormous. we are looking at a 30 percentage point lead as of now, over his nearest rival. a huge landslide. >> he has talked about number of things that are unique to mexico

including a war on corruption, , and that means reviewing government contracts and perhaps canceling work on a new airport. that is something everyone will watch for. investors are concerned this morning because he made it a priority in his acceptance speech to say that he was concerned for the poor. the poor would be forefront in his legislation. maybe that means he opens the fiscal caps. they will also look at central bank autonomy and oil deals. pemex and outside investors. >> german chancellor angela merkel's fate could hang in the balance as she tries to find a compromise on immigration policy. her interior minister offered to resign here it that he put that threat on hold as talks resumed. what is going to happen? >> everyone in berlin is on the proverbial pins and needles waiting to see what happens at the meeting. at this hour, the interior minister and head of the

bavarian christian social union is set to meet with chancellor merkel to discuss this standoff over immigration. it is really anyone's guess how this will play out. >> my german chancellor has halted the immediate threat of a government breakup, crafting a plan to tighten migration and keep her bavarian sister party in the fold. there will be holding centers at the german boarder set up for refugees already centered at the border, already. registered in other european countries her interior minister who had threatened to quit, will remain in his position. >> it was a long night i -- in berlin at this time we have a deal going into this meeting. she had three big challenges going into the meeting to keep her christian democrats together, and to please the interior minister. the german government has agreed as you pointed out, is create transit centers for migrants at the border. the goal is that they will be able to determine who can stay

in germany. those who do not will be quickly deported to the country they came from. to do this the german government has also announced a bilateral deal with austria. the migration row is finally over. >> the trump administration letting zte resume business activity as the u.s. weighs a seven-year ban. shares of microtechnology slumped on word that is chips have been temporarily banned in china. this seems to be the first step in putting zte back into the good graces of the trump administration. but what comes next? >> right now, zte will be able to service contract they signed on or before april 15, when the u.s. had slapped the ban on zte. as part of the demand last week,

the ousted the chairman of the board, and they are moving toward august 1 when presumably the trump administration will decide yea or nay, that zte can continue doing business with the u.s. companies. >> as the door open for zte? it is closing for micron in china. how unusual is this for a chinese court today? >> umc and micron were involved in a big intellectual-property battle, there was a lawsuit filed against them in china and the won a preliminary injunction blocking the sale of certain chips and mainland china for micron. this is a fairly big deal. about half of micron's sales come from china. micron will likely launch some sort of protest, and settle the dispute with umc.

it is a little bit of turbulence in the short-term all everyone scrambles to figure out with the scope of this injunction is. >> the federal reserve is due to publish minutes from its june 13 policy meeting where officials raised the benchmark rate by a quarter-point point for a second time this year. >> there isn't a central message from these minutes. fed officials say that the economy is operating in top year. top gear solid growth, strong consumer spending and increasing investment. still, many noted that if the fed stays on his current policy path, "the federal funds rate could be at or above estimates of its neutral rate sometime next year." what could knock them off their path? well, most participants noted that uncertainty and risks associated with trade policy had intensified, and they were concerned that these risk good -- could have negative effects on business sentiment and investment spending. >> the united states went ahead

with its tariffs on imports from china as promised at midnight washington time. china responded immediately with similar tariffs on u.s. goods. saying, "china will never start our trade war, but will take measures in response to others ." >> this is of course, the first round of president trump's trade policy. billion in tariffs on chinese goods. which are impacting a host of different industries, most notably in the commodities market, and protecting u.s. intellectual property. you look at chinese tariffs on u.s. goods, soybeans, sorghum and in thesector agricultural and farming states. that is directly impacting president trump's base. the very conservative heritage foundation we should note, arguing against what the president has done. but president trump is getting support from the association of manufacturers.

>> china is very much trying to keep "the moral high ground" that it sees itself having here, paints itself as the victim, of trump's war that he has initiating. that is the line that they will keep pushing as this continues to chug on, this trade war. >> unemployment rising, which -- wage growth slowing. the economy adding a better than estimated 213,000 jobs, but the and implement rate rising to 4%. >> this will not change the course. the fed will not change course by itself. a few more reports in this direction, if we see a wave of people coming to the labor force, i don't expect that, but of that seems to be the case, it could cause an adjustment in their thinking. >> i think people will conclude three things from the implement report. one is that the u.s. economy will continue to outpace others, two, that it is able to navigate

trade tensions -- not a full trade war, but trade tensions -- and three, that the fed will hike at least once more. why not more than that? simply because wage growth is still sluggish. >> the headline numbers on this economy look rocksolid. there is some nervousness from some of the officials in the republican party around the tariffs story. it could possibly negate the positive effects of physical stimulus your administration has introduced. are you concerned about that? >> the objective is to make trade deals better, and i think the president wrote "the art of the deal." i think we will start to see those deals. one of the things we have been watching for is negative impact in the data from anxiety over trade. if you look at the jobs report, one of the key places where you would see that is the metal industries, where steel and aluminum tariffs are in place. we saw employment increase in the downstream industries in this jobs report. so there isn't clear evidence

trade is beinger harmful to the industries which are most watched for harm. that is probably because i think that these people understand the president is driving the world to a better equilibrium. haidi: still ahead, as we review the week on "bloomberg best," an exclusive conversation with the with johnny douglas reveals his plan to shake up the carrier tony douglas who reveals his plan to shake up the carrier and reversed losses. and, more of the week's top business headlines. china manufacturing data comes in below expectations, and it is not all about the tariffs. >> clearly, there are already worries before we get into any concerns around trade. haidi: this is bloomberg. ♪

haidi: this is "bloomberg best."

i am haidi lun. let us continue our global tour of the week's top business stories with a message from president trump that made an impact on oil markets. ♪ >> oil prices slipping after a weekend tweet from president donald trump said that saudi arabia's king salman had agreed to increase oil production. both he and the prince backpedaling on those comments. president trump added to the pressure yesterday during an interview on fox. president trump: opec allowed less than we thought last week. they have to put out another 2 million barrels, in my opinion, because we don't want that happening. >> what does the president want? does the president want the saudis to break from opec? >> i think the president wants lower gasoline prices heading into the summer. how that comes about, i don't think is particularly his concern. does he wants to see the end of opec?

i think quite clearly, he has done for many many years. i think he needs to be really careful what he wishes for, because without the spare capacity that countries like saudi arabia and one or two others in opec hold, we would have no ability to deal with any of the disruptions, even the ones we have seen in the last couple of weeks. >> saudi arabia cutting oil prices for the month of august following donald trumps tweet demanding opec do more to stabilize prices. trump tweeting "they are doing little to help. if anything, there are driving prices higher your car -- driving prices higher. this must be a two-way street, reduce pricing now." has the president gotten what he wants to some extent with the actions were learning from saudi aramco this morning? >> it is a little marginal, but it is significant. in essence, they will only cut prices by $20 a barrel, an arcane part of the oil market. but it is a signal that saudi

arabia has taken the president's concerns seriously. we have had another interesting reaction from a second opec member, iran. iran is less keen as you can imagine to keep president trump happy. iran's opec governor has even trolled the president, saying in a tweet, "your tweets have driven up prices by at least $10 a barrel. please stop, otherwise it will go even higher." >> let us look at china data from the weekend. the pmi reading showing that trump's rhetoric on trade is perhaps seeping into economic data. the export gauge index, showing that new export orders are tumbling into a contraction. according to a survey, confidence among japan's largest manufacturers is also slipping during the second quarter due to trade tensions. we have to start with china erie key takeaways for you there? >> clearly there are already worries even before we get into any concerns around trade. the question for the second half

of this year really is how much of this plays out against any predictions of policy support, be that from the pboc or the authorities as they tried to address the slowdown. that is a tricky thing for investors at the moment. as we are seeing in the currency market, it is difficult to know what they will do next, what the steps might be. certainly, there is a lot on the plate left for them to be able to step in and stem these weaknesses they are seeing in their economy. >> the governor of the pboc says china will keep the yuan stable at an equilibrium level. blaming recent currency volatility on dollar strength and external uncertainties. the yuan slumped to break a level of 6.67. is that enough for the chinese to stabilize the currency? does not seem to be. >> no, i think there will still remain some short-term pressure of the yuan, until we get a couple of days of strength.

they concern around the currency will not go away. we saw the capital outflows story at the end of 2015 and into 2017, even after the yuan started appreciating, those concerns lingered for a little while longer. it is important to emphasize while this is much of a valid, short-term story, traders and day traders should be watching the yuan and should be concerned, long-term investors should not be concerned. this is not a long-term story. >> let us pivot to iran, the president seeking deeper ties with switzerland. and called on europe to deliver on its promise to shore up the 2015 nuclear deal. iran has said it will resume its nuclear activities unless france, germany and the united kingdom can guarantee continued investment and trade. what happens next in this story? >> we are really looking at the measures that the eu may be

taking, or how far they may be able to go in order to counter the u.s. sanctions that are unilaterally imposed, and will be introduced as early as next month. so we have coming up now on friday a meeting with foreign ministers from the parties that remain in the deal, that is the u.k., germany, france, russia, china and iran. they will meet in vienna and discuss a proposal, an economic package aimed at buffering iran against of those sanctions, countering the impact of those sanctions. >> resilient car sales. top u.s. automakers reporting high sales in the month of june, despite rising interest rates and escalating trade tensions which were expected to curb those vehicle sales. i guess the takeaway is that americans continue to purchase suvs and light trucks at the expense of those passenger cars. >> the numbers keep snowballing, right? we saw the shift in demand, people shifting away from cars

and towards suvs. fiat chrysler started killing off their less-competitive cars, but they still sold in large numbers, mostly to rental fleets. when you take is out, you see more numbers. ford started disinvesting in their car line, and we will keep seeing more of this. their call no on , sign of stability, no end to the fall in car demand at this point. >> the ecb fearing that market expectations for a rate hike in december might be too low. some members of the governing council reportedly saying that september or october of 2019 may actually be on the cards. the euro climbing on the news. this sounds like rating in dovish expectations on the margin. >> yes, what this is is an attempt by the hawks on the governing council to cement expectations for a rate hike in september. that has worked.

it bolstered expectations a bit, and as you said, it supported the euro. >> theresa may's top negotiator has rejected a plan. meanwhile, britain's top carmaker warned against a bad brexit deal, saying that investors in the united kingdom would be jeopardized if the latest in a series of big household names warning about brexit. >> yes, they are putting numbers on these threats. talking about the huge number of investment in the united kingdom that is a threat if we have a very bad brexit deal, or what they mean by that is a hard brexit. lots of trade barriers between britain and the eu. if you look at what mrs. may is proposing, and what mr. davis seems to have rejected, it is trying to inch towards a softer end of the brexit curve. this might actually strengthened

mrs. may's hand when she is negotiating with her cabinet. >> theresa may backed a plan to keep close ties with the eu after leaving the bloc. the united kingdom will have a closer relationship to the eu single market that many programs ro-brexitigners p campaigners hoped for when the first set out plans in january of last year. ♪

haidi: you are watching "bloomberg best," i am haidi lun. businesses around the world are feeling the impact of tariffs battles. from manufacturing to agriculture costs are increasing , and uncertainty is raising the threat of layoffs. we went across the atlantic ocean to see how trade was are unsettling new england's lobster industry. ♪

as talk of global trade wars heats up new england's most , valued export is already in hot water. >> this trade war is going to have some really negative effects on lobstermen in massachusetts. ♪ >> lobster is one of the nearly 700 american asked words that -- china is targeting for terraces of 25% -- american exports. it is a response to president trump's 25% tariffs on $34 billion of imports from china. massachusetts lobsterman billy mahoney says he is already been $.50 less per pound on the news. >> when the deal is past all , hell will break loose as far as the price. >> new england landed nearly $700 million worth of lobster last year, 94% of the nation's total.

exports from maine to china increased 30% year-over-year. >> we are hopeful the domestic market can pick up the slack but , i am not very hopeful. when you become dependent on the chinese. traps are also caught in the crossfire. >> some of this comes from canada. some comes from the u.s. since the first of the year the price of the product is nearly doubled. >> the ceo blames president trump's 25% tariff on imported steel from canada and the eu. >> it puts handcuffs on us because we are unable to buy raw materials at a competitive price. >> he says he might have to raise his prices 15% and

sourcing american-made steel is not a solution. >> many mills are booked through october. they are not sure they will able to get the products so they are booking in advance. >> some worry that this have the opposite effect. >> we have actually clawed back a lot of the exports that were coming into the u.s. from china. this will give them an opportunity to take them back from us. >> china will chase down the canadian lobsters and the u.s. will be hurt seriously over this. i think this could affect people going out of business. haidi: coming up on "bloomberg best," the week's top company news, including europe's biggest steel merger in more than a decade, with reaction from ceos on both sides of the deal. and straight ahead highlights from the week's most interesting interviews. at airline ceo says investors and passengers can expect changes. >> routes that were profitable

for us we are not shy, we're , taking them off to haidi: this is bloomberg. ♪

haidi: this is "bloomberg best." time to revisit some of the week's top interviews on bloomberg television, starting with tony douglas. in an exclusive conversation with manus cranny in abu dhabi, he laid out his goals for scaling back the carrier's global ambitions. ♪ >> we have financed a management restructuring. it is a punctuation point in a broader transformation program. we have a wide range of businesses, as well as the core airline. we have interests in our travel management business, we have interest in etihad engineering,

our maintenance and overhaul operation. we have etihad partners like jetta, virgin australia, the seychelles. in the past, take etihad, the core airline, the complete management structure that sat over the top of that, and pete did an incredible job of leading us through an incredibly fascinating time of growth. but we didn't have a group structure on top of that. quite simply, what we are doing at this point in time is rationalizing taking layers out, simplifying, making it far more fit for purpose, and taking over. >> you have some risk. what the marketplace is going to want to know is do you plan to take more risks? where is the equilibrium for you? >> quite simply, the heart of any airline is its network, and networks need to be reanalyzed. years ago, it would have been quarterly.

today i would question it almost needs to be minute by minute. so you will have seen that in , the recent past routes that were profitable for us, we are not shy in taking them off. regrettably san francisco, , edinburgh didn't work. we couldn't see a way in which they would be economically sustainable. we will take them off. but the flipside is where we see greater opportunity emerging, such as baku, and later on this year google to barcelona on. we will put barcelona on. it is to make sure that we are more agile in nimble in the way in which we adjust to where the market is. that is the heart of a modern, agile, flexible airline. >> sweden's central bank is moving closer to its first rate increase in seven years. the kroner spiked after the bank committed to a plan to raise rates toward the end of the year. bloomberg's nicholas magnuson

spoke with the governor about that strategy. >> the majority view is that, on the one hand, things are moving on quite nicely in this economy, in terms of the growth numbers and the global economy. but on the other hand, inflation pressures are quite modest. given that it is the case, we really like to see that inflation target at 2%, or close to 2%, and with that background it would be too early to change direction now. >> some analysts worry that by the end of this year, when you plan to raise rates, gdp growth will be slowing down and there will be concerns about the inflation outlook. how confident are you you can indeed raise rates by the end of 2018? >> that is our projection at this time, but when you were talking about growth slowing down, growth numbers have been

very good for almost five years or something like that. demand in the swedish economy is high. that is often what you see when you look at what's going on in the labor markets where we have increasing shortages of labor. in that environment, i don't think that would be much of an issue because growth numbers will be quite stable for several years to come. ♪ >> u.s. financial markets were closed wednesday for the july 4th holiday, an opportunity for many to take the day off and the joy of barbecue. recently, joe weisenthal visited minneapolis federal reserve president neel kashkari, the only fed official who regularly use social media to communicate on monetary policy and to boast about his skill at the grill. he invited joe to his home for

home cooked steak and the conversation about issues like financial rates. >> in a recession, economists tend to raise the natural rate of unemployment. they think people get dislocated, skills are mismatched, and it ratchets up. only begrudgingly do they lower it. one conclusion i've made is i don't think it is useful in a recession to ratchet up the natural rate of unemployment, because we are so reluctant to lower it. we end up being late and recovery. we would be better off just holding it fixed then ratcheting it up. maybe it's a lot lower than we think. we know workers have more education today than they did 20 years ago. we know that firm dynamics have changed. is it 4.3, 4.5, we don't really know. >> so there is an asymmetry in people in the estimate of what is full employment, and it is easier to bump it up and slow to bring it down. >> that's just an observation i made. in the very deep great recession, the unemployment rate hits and percent.

most economists estimate it ratcheted up quickly. then there was a narrative. i was echoing it, too, saying all the people who left the job market were permanently lost and would never come back. that has proven to be dead wrong. we would have been better off not making that assumption then only slowly learning that it was true. >> it is great as the unemployment rate has come down, maybe people will ratchet down their estimate of where the natural rate of unemployment is. is there something that the fed can do next time around so that it's not keeping that number too high, and therefore implicitly running monetary policy that is intentionally too tight? -- potential too tight? >> one simple thing is don't ratchet it up. if we figure out where it is, 4.5, 4, 3.5 -- if we say it really is 3.5, i say the next time there is a recession, let's just hold it there and let's operate monetary policy using that assumption rather than the

reflective ratcheting it back up. >> in light of this i know that canada every five years has some hearing big review -- big review. they look at their approach to making policy and whether it makes any sense, revisiting their assumptions. would you support something like that at the fed? >> i'm not opposed to it, but we worked very hard to establish credibility on our 2% inflation target. i'm very skeptical that even if we wanted to raise the inflation target, for example, say at 3%, i'm very skeptical that the american people would support it. i think likely they would be a big push back. we worked very hard to get a framework that works. i think we should live by that framework. that means actually living by the symmetry of that 2% target, not treat it like a ceiling. >> maybe four hikes this year. does that seem appropriate to you? when you say the mistake so far has been to run it too tight. >> i think legitimately we are moving closer to our inflation

target. core inflation is that one point percent. wage growth picking up. overall, i would be comfortable with us moving to a neutral rate. not stimulating the economy, but not also constrain the economy. once we get to neutral, let's wait and see how inflation evolves. look at how wage growth evolves. we could be one or two hikes away from neutral. there are wide ranges of estimates around where neutral is. some people think it could be as low as 2%, maybe 2.5%. somewhere in that zone. we are not very far away. i personally don't want us to commit to a steep path until we see how wage growth picks up. ♪

haidi: you are watching

"bloomberg best." let's resume the roundup of the week's top business stories with the focus on company news. it looks like tesla finally has production results to celebrate this week, but that excitement wore off pretty quickly. >> tesla succeeded in hitting is target of producing 5000 model 3's a week, but what should be a cause for celebration is creating concern, as shares close lower, off by 2.3%. >> the news was digested yesterday when we got an internal email from elon congratulating everyone at tesla for making it. the fact that they hit this 5000 number is not new today. what was due today was their delivery figures which were a big miss. investors are realizing that they made this marked late in the quarter and it will still be an uphill battle to make it sustainable week after week after week. >> tesla is set to be causing model 3 production after meeting its target of 5000 cars per week.

the news comes as some question whether the company can sustain those high output level. yesterday, it was like elon musk was declaring victory. we are a real car company, and now they seem to be backtracking a bit. >> it seems that elon musk has some company -- confidence in the company's manufacturing operations right now. it is a delicate time for the company, definitely meeting their 5000 unit weekly target, but the expectation is that the pause in production won't affect their production targets going forward. it is not unusual for carmakers to take a break during the july 4th holiday to check those facilities, do maintenance, give employees some time off. >> germany's tata has reached agreement to set up a european steel champion. the companies say they see

synergies of 400 million to 500 million euros, and that it is for the long term. are you satisfied, more or less, with the outcome of renegotiations over the deal terms? >> i'm satisfied. we've brought a two-year negotiation to a successful end, and it addressed the four major issues for us. we really address the structure problem of the steel industry in europe. we create substantial value for shareholders with the synergies you mentioned before. 400 million to 500 million a year. for the majority of our employees, we could secure a more promising future. but the fact we remain a shareholder is also good for our transformation. >> how does this joint venture fit into a world where there is too much steel being produced? >> i think that is why consolidation becomes very important so we can be much more , competitive. we will not be able to achieve

the kind of competitiveness we can achieve together and that is why the consolidation makes more sense. >> thyssenkrupp ceo has resigned, bowing to shareholder pressure, stepping down days after the company signed a deal for a european steel joint venture that was strongly opposed by some investors. earlier this year, elliott management wanted to oust him, who has been criticized for the company's declining revenue rising cost and falling stock , price. >> boeing has reached a preliminary agreement for a $4.75 billion joint venture. we knew about this back in december. remind us what this deal is. >> it has taken many evolutions to negotiate this partly because , it is viewed as this brazilian champion. the government did have a say in exactly how this deal turned out. what they have come up with is a joint venture with a commercial aer. ion part of embr

that company will continue to have a defense operation and executive aviation, small, private business planes. but the commercial part is what boeing wanted and what they are getting out of it. the transaction values that at $4.75 billion, which is a significant premium when you consider that it is all of embraer is valued at less than that right now. >> trouble for airbus. the company is set to miss delivery targets with their jets this year. why is airbus going to miss it? >> my colleagues were reporting over the weekend that they are having continued issues with their a320. the engines on the plane. there are two types of engines that go on the plane, and it is continuing to cause headaches. what we have been hearing is that it will essentially lead to 30 to 40 planes fewer of that type being delivered this year.

>> glencore has fallen the most in two years in london after company said it was subpoenaed by the u.s. department of justice to produce documents relating to corruption and money laundering. the world's biggest commodity trader says the documents related to the business in nigeria, the democratic republic of congo and venezuela between 2007 and the present. it is quite a big move we are seeing in the shares. is it potentially overdone, given the news? >> on the face of the announcement, potentially yes. i think what investors are reacting to is the potential for this to broaden out. in this announcement, we have an indication that the doj is also looking at payments made by the oil business in venezuela and in nigeria. one of its key differentiating factors is the appetite for risk for operating in difficult , jurisdictions, and the

question now is just exactly how those operations have been run in recent years. and very difficult regimes. >> glencore is to buy back as much as $1 billion of its own shares in a move that may soothe investor confidence after they were hit with a u.s. government probe earlier this week. the timing is interesting. >> it might do. glencore was having a very good year. we should remember the underlying business is strong, and the whole mining industry is growing up lots of cash. so, yes, they are well within their balance sheet metrics. it makes a lot of sense. but as we say, the timing is interesting. >> socgen is acquiring commerzbank exchange traded products. it is part of an expansion plan in europe's largest economy, the french bank taking over asset management businesses in london, paris, hong kong, and zurich. any surprise in this?

>> not really. this was a well-flagged deal. they are big in the etf space, and also the investment bank for them was another underperformer. germany is a big market. we know it's a very small dent to capital. from commerzbank's perspective, this is part of a restructuring, simplifying, stripping out costs. no real surprises. should be mildly beneficial to both banks. >> dell has announced plans to trade publicly again. as part of the deal they will be buying out dbmt tracking stocks, reflecting a big deal. i don't understand the deal. >> you were definitely not the only one. it is very complicated, very convoluted. surprisingly, it does simplify their structure. what they are doing as they are buying their tracking stock for vmware. they are not buying vmware,

which a lot of people expected them to do as part of this process. i don't really see how this full buyout of the tracking stock solves their problems. they were looking at these types of transactions because they have this hefty debt load from their buyout with silver lake. from the emc deal. this doesn't necessarily solve that. the benefit of doing these series of transactions was to take advantage of vmware's balance sheets, and they are not doing that necessarily. >> out with the initial results for the second quarter. a little bit short of the bar. tell us what you think could have been behind this slight earnings miss. >> asset management warned back in april when they had a call for first q earnings they said , they would spend more on marketing for the galaxy s-9. the shipment has not been as good as anticipated.

last year, they ship 40 million s-8 models before the s9, probably missing targets. they couldn't even ship 30 million this year. the miss is well anticipated. although we did see that is still a little bit below what we have been talking earnings. that is why, sentiment-wise, it is not that good. but the company may come out in three weeks time with more bullish guidance on second half outlook when they have their earnings call the full beagle breakdowns. -- full detailed breakdowns to >> indebted chinese conglomerate hna group has lost its number two executive. what else do we know? >> we know it was an accidental death. our porters in france did speak directly with the french police. they confirmed that the autopsy shows this was an accidental

death. he fell, had a very high fall, died as a result of that. we have yet to hear from the company in terms of if there is any change in their plans to go ahead with the plan asset sales they have had, and with the plan of restructuring. we have yet to hear from them exactly what's going on in that regard. >> this week, bloomberg television proudly presents an exclusive coverage of the boston pops fireworks spectacular. you can watch it all, the independence day festivities, and musical performances only at bloomberg.com. ♪

>> there is some concern for wynn if you can take a look at my bloomberg. you can see that macau, the yellow bars, is the largest source of revenue. haidi: there are about 30,000 functions on the bloomberg, and we always enjoyed showing you are favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, quic . it will take you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. ♪ >> when you think about people who shaped the world cup, but how about the american executive who admitted to taking bribes, partly as a result of his testimony? sweeping international investigations have led to the arrest and convictions of dozens of corrupt officials, including blazer himself. >> once they got blazer, sat him down and they realized that this is a monster. we have something big here. >> that is an author at

investigative journalist who wrote this book on the scandal. in may, 2015, he raided a five star hotel in zurich and arrested top executives from fee fifa. >> that moment has now become an indelible, watershed moment in the history of modern soccer. >> the world cup and soccer in general have become such big business that executives were offered huge bribes to ensure certain companies won immediate contracts or for certain countries oppose the world cup. -- to host the world cup. >> it went from an organization with annual revenue in the seven digit figures to what it is today, which is every four years the revenue is in the $5 billion-$6 billion range. >> blazer had done particularly well from his dirty dealings. he reportedly bought himself a $900,000 beachside condo in the bahamas, two south beach apartments, hundreds of first-class flights, and a sweet trumpuiet -- suite in

tower. but like al capone, his undoing this tax evasion. he struck a deal with the fbi and provided live information for year-and-a-half, while still on fifa's all-powerful executive committee. they were the two dozen or so men who decided, in secret, who gets a hold the world cup, a decision worth billions of dollars in media rights and infrastructure projects. >> very quickly, a culture of behind the doors dealing, bribery, and sketchy behavior developed in this committee. >> blaser mentioned the vote to give south africa the world cup was rigged. he also took part in the most contentious decisions of all. to 2010 vote that had a go russia and qatar, a tiny but rich gulf state with little soccer pedigree. swiss, u.s., and french prosecutors are still investigating allegations of bribery surrounding those votes. of the members from 2010, most

are now either banned from soccer or facing investigation. in the u.s., some $300 million from dozens of guilty parties have been collected so far. blazer pleaded guilty to 10 corruption charges, but died in 2017 before sentencing. as part of a cleanup operation to restore credibility, they -- fifa removed the power to award world cups, and handed it to the 200 or so national members. >> the thing about 200 versus in 24, theory, you can still buy them, it is just more people to bribe. there are still questions about transparency that haven't been answered. my feeling is that until they develop transparency, it is going to be hard for them to be credible. >> in june, fifa's members chose the u.s., canada, and mexico to host the 2026 tournament. haidi: 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 24 hours a day. that will be all for "bloomberg

best" this week. thanks for watching. i'm haidi lun. this is bloomberg. ♪

carol: welcome to bloomberg businessweek. courtney: i am jason kidd -- jason: i am jason kelly. whatrope, contemplation on the continent will be like without angela merkel. and we go digital. we look at something happening all around the world, cash