you are taylor: coming up on "bloomberg best," the stories the that shaped the week around the world. mexico swings left in a historic presidential election. >> this time, we do have a deal. in china's central bank steps up to stabilize a deteriorating yuan. >> fed officials in general say the economy is operating in top gear. >> the fed will hike at least once more. because wage growth is still sluggish. >> a return to public markets. they pull out all the sports to reach a target.

a mega deal is completed. >> it is important so that we can be much more competitive. >> the loss to industry from trade wars as they already feel the pinch. >> all hell is going to break loose. >> and, neel kashkari has a fireside chat with bloomberg's joe weisenthal. >> there are wide estimates of where neutral is. >> that is all ahead on "bloomberg best." ♪ haidi: hello and welcome. i'm haidi lun. this is bloomberg best. lets 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, amlo was elected mexico's first left-wing president in decades, in another decisive win for populism. he was swept to power with a campaign of anger over in cessant corruption and poverty. given the details of how the election went for lopez obredor. >> it went very swiftly and quickly, and smoothly, the range by which he won was enormous. we are looking at a 30 percentage point lead as of now, over his nearest rival. >> he has talked about number of things that are unique to mexico including a war on corruption,

reviewing government contracts and perhaps canceling work on a new airport. investors are concerned this morning because he made it a priority in his acceptance speech to say that he was concerned for the poor and the poor would be forefront in his legislating. may be in me that he opens the fiscal caps. they will also look at central bank autonomy and oil deals. >> 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, and put it on hold as talks resumed. what is going to happen? >> everyone in berlin is on proverbial pins and needles, waiting to see what happens at the meeting.

at this hour, seehofer 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 lay out. >> the german chancellor has halted the immediate threat of a government breakup, crafting a plan to tighten migration, and keep her sister party in the fold. there will be holding centers set up for refugees already registered in other eu countries. her interior minister who had threatened to quit, will remain in his position. >> it is 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. what 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 cannot will be quickly be deported to the country they came from to do this, the german government has also announced a bilateral deal with austria. mr. seehofer stays. >> the trump administration letting zte resume business activity in the u.s. shares of micron technology 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 contracts they signed on or before april 15, when the u.s. had slapped their ban on them. $400are due to pay

account.n an escrow was part of the ban 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 they can continue doing business with the u.s. companies. >> as the door open for them, it is closing for micron in china. >> umc and micron were involved in a big intellectual-property battle, there was a lawsuit filed against them in china and they won a preliminary injunction blocking the sale of certain chips in a minute china from micron. micron will likely launch some sort of protest, and settle the dispute with umc.

it is a bit of turbulance to figure out the scope of the injunction. >> the federal reserve is due to publish minutes, where officials raised the benchmark rate by a quarter-point point for a second time this year. >> the central message from this minutes, federal officials say that the economy is operating in 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 not them off their path? well, most participants noted that uncertainty and risks associated with trade policy had intensified, and they were concerned that these risks could eventually have negative effects on business sentiment and investment spending. >> the united states went ahead

with its tariffs on imports, and at midnight on washington time. china responded immediately with similar tariffs on u.s. goods. the chinese premier spoke, saying "china will never start our trade war, but will take measures in response to others." >> this is of course, the first route, 34 billion dollars in tariffs. u.s. tariffs on chinese goods which are impacting a host of different industries, most notably in the commodities market, and protecting u.s. intellectual property. if you look at tariffs on u.s. goods, soybeans, sorghum and in the agricultural and farming states, that is a great impact on trump's base. the very conservative heritage foundation we should note, argued against what the president has done. but he 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, painting itself as the victim, of trump's war that he has initiated. that is the line that they will keep pushing as this continues to go on, this trade war. >> unemployment rising, wage growth slowing. the economy adding a better than estimated 230,000 jobs, but the and implement rate rising to 4%. >> this will not change the fed to 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 if 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, 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 once more. why not more than that? because wage growth simply, 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. if you look at the fiscal stimulus, the positive effect of it, are you concerned about that? >> the objective is to make trade deals better, and i think the president, who 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 you would see that is the metal industries, where steel and aluminum tariffs are in place.

we saw employment increase. so there isn't clear evidence that there is clear evidence that the anxiety of a trade is being harmful to the industries which are most watched for harm and. 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, an exclusive conversation with the chief executive of an airline. tony douglas reveals his plan to shake up the carrier and reverse 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 about trade. haidi: this is bloomberg. ♪

haidi: this is "bloomberg best." i am haidi lun.

lets 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 president trump said that saudi arabia's king had agreed to increase oil production. both he and the prince backpedaling on those comments. it 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 he 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 asking opec do more to stabilize prices. the president tweeting "they are doing little to help with anything, there are 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, quite 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. they are 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 trumps 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 this second quarter due to trade tensions. what are the 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 it from the pboc or the authorities as they try 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 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. recent currency volatility on dollar strength and external uncertainties. blaming the recent currency volatility on dollar strength and external uncertainties. the yuan slumped to a level of 6.67. is that enough for the chinese to stabilize the currency? doesn't 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. the concern will not go away. we saw the capital outflows story at the end of two any 15 and 2017, even after the yuan started appreciating, those concerns lingered for a little while longer. 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. >> lets pivot now to iran, the president rouhani seeking deeper ties with switzerland. he 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, 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, or 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 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

toward suvs. fiat chrysler started killing off their less-competitive cars, but they still sold in large numbers, mostly to rental fleets. when you take those out, you see more numbers. ford started disinvesting in their car lines, and we will keep seeing more of this. no 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 climbed been on the news. this sounds like reining 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. and it has worked, it bolstered expectations a bit, and as you said, it supported the euro. >> the prime minister theresa may has rejected a deal on the customs union. meanwhile, britain's top carmaker warned against a bad brexit deal, saying that investors in the united kingdom would be jeopardized if the latest of a series of nick household names warning against brexit. >> yes, talking about the huge number of investment in the united kingdom that is a threat if we have a very bad exit deal, or what they mean by that, a hard brexit. lots of trade barriers between britain and the eu. if you look at what she is proposing, and what mr. davis seems to have rejected, it is trying to inch towards a softer end of the brexit curve.

this rhetoric might actually strengthen theresa may's hand. hand. >> 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 than campaigners had hoped for when the first set out plans in january of last year. ♪ in january of last year. ♪

>> you are watching bloomberg best, i'm haidi lun. businesses around the world are feeling the impact of tariffs, from may fracturing to agriculture, costs are increasing and uncertainty is raising the threat of layoffs. bloomberg's boston bureau chief tom maroney talked at the howntic ocean about

tariffs are affecting maine's lobster industry. talk of global trade wars heats up, new england's most valued see product is an hop water -- hot water. is treating war lobster really negatively in massachusetts. tom: lobster is one of nearly 700 american exports to china that is being targeted for new tariffs of 25%. effect july 6,ke the levees are beijing's response to president trump's tariffs on $34 billion of imports from china. massachusetts lobster man billy mahoney says he is already being paid $.50 less the pound on the news. some --is going to pest pass some negativity to the lobstermen. all hell is going to break loose as far as prices. tom: new england landed $700 million worth of lobster last

year, and exports to china increased nearly 30% year-over-year. >> hopefully the domestic market .an pick up the slack but i am not very hopeful. i think we cannot become dependent on the chinese market. lobster traps are also caught in the tariff crossfire. riverdalefacturer mills in massachusetts supplies 85% of the american markets wire mesh lobster traps. >> some of this comes from canada, some of it comes from the u.s., and since the first of the year, the price of the product has nearly doubled. tom: the ceo blames president canada >> and on the eu. we are -- tariff on steel from canada and the eu. >> tom: -- tom: sourcing american-made

steel is not a solution. >> many mills are shut down until october. they are not sure they were able -- when they are going to be up to get the product. tom: president trump to level the playing field for american markets in the global economy, but some worry that will have an opposite effect. >> this will give them an opportunity to take them back from us. to go chasegoing down the canadian lobsters and the u.s. is just going to be hurt. i think this could affect people going out of business. haidi: coming up on bloomberg best, the week's top company news, including the biggest merger in over a decade. and highlights from the week's most interesting interviews. the ceo of -- says passengers and customers can expect changes. >> routes that were profitable

for us are now not --. >> this is bloomberg. ♪ phones have made our lives effortless.

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>> this is "bloomberg best." time to revisit some of the week's top interviews on bloomberg television, starting with etihad airways and ceo tony douglas. in an exclusive conversation with manus cranny in abu dhabi, he laid out his goals for scaling back 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 engineering,tihad

which is our maintenance and overhaul operation, we have we have -- we have partners like jetta, virgin australia, the seychelles. in the past, you had 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. -- taking overhead out. >> you cut back some risk. what the marketplace is going to want to know is do you plan to take more -- where is the equilibrium for you? more room to come off the table? tony: quite simply, the heart of any airline is its network, and networks need to be reanalyzed. years ago, it would have been

quarterly. the day, i would question it almost needs to be minute by minute. you will have seen that in the recent past, routes that were profitable for us, we are not shy now in taking them off. so 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 we will put barcelona on. it is to make sure that we are more agile and nimble in the way in which we adjust to where the market is. that is the heart of a modern, agile, flexible airline. haidi: sweden's central bank is moving closer to its first rate increase in seven years. the krona 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.

stephen: the majority view is that, on the one hand, things are moving on quite nicely in this economy, and in terms of the growth numbers and the global economy. but on the other hand, inflation pressures are actually quite modest. that that is the case, we would 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. nicholas: some analysts worry that by the end of this year, when you plan to raise rates, gdp growth will be slowing down and perhaps raise concerns about the inflation outlook. how confident are you you can raise rates at the end of 2018? stefan: that is our projection at this time, but when you were -- it is important to keep in mind that when you were talking about growth slowing down, growth numbers have been very

good for almost five years or something like that. so aggregate demand in the swedish economy is high, and that is also what you see to look at what is going on and what happens in the labor markets, where we have increasing sorted is -- shortages of labor. in that environment, i do not think that would be much of an because growth numbers will be quite favorable for several years to come. haidi: u.s. financial markets were closed wednesday for the july 4 holiday, an opportunity for many to take the day off and enjoy a barbecue. recently, joe weisenthal visited minneapolis federal reserve president neel kashkari, the only fed official who regularly uses social media to communicate on monetary policy and to boast about his skill at the grill. he invited joe to his home for some home-cooked steak and a

conversation about issues like the natural rate of three inflation. >> in a recession, economists tend to raise the natural rate of unemployment. they think people get dislocated, deals are mismatched, and it ratchets up. and then only begrudgingly do they lower it. so one conclusion i have already 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 then lower it and we end up being late lowering it in the recovery. we would be better off just holding it fixed then ratcheting it up. and now 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, 4.4, we don't really know. joe: that's interesting. 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. neel: that is just an observation i have made. in a very deep, great recession, the unemployment rate hit 10%, most economists estimate it ratcheted up quickly.

and then there was a narrative -- and i was echoing it, too, saying all the people who left the job market 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. joe: as the unemployment rate has come down, maybe people will ratchet down there 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 too tight? neel: well, i think one simple thing is, do not ratchet it up. if we figure out where it is, maybe it is 4.5, maybe it is for, maybe it is 3.5. if it is really 3.5 or 3.7, i say the next time there is a recession, let's just hold it there and operate monetary policy using that assumption

rather than the reflexive ratcheting it back up. joe: i know that canada every five years has some kind of big review where they look at just their approach to making policy and whether it makes any sense and revisit all of their assumptions. would you support something like that at the fed? neel: i am not opposed to it, but we have worked really hard to establish credibility around our 2% inflation target. i'm very skeptical that even if we wanted to raise the inflation target, for example, to 3% as some have recommended, i'm very skeptical that the american people would support it. i think there would be a lot of pushback. we have worked very hard to get a framework that i think works. i think we should live by that framework, and actually live by the symmetry of that 2% target and not treat it like a feeling. joe: maybe four hikes this year. does that seem appropriate to you? when you say the mistake so far has been running it too tight. neel: well, my view is i think

legitimately we are moving closer to our inclusion -- inflation target, one point 8%, wage growth is picking up a little bit. so overall, i would be comfortable with us moving to a neutral rate. not stimulating the economy, but not also constraining the economy. and once we get to neutral, let's wait and see how inflation evolves. .ook at how wage growth evolves so that to me, 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%, federal funds rate, 82.5% federal funds rate. we are not far away. i do not want to commit to a steep path until we see how wage growth picks up in inflation. ♪

haidi: you are watching

"bloomberg best." i'm haidi lun. let's resume the roundup of the week's top business stories, 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 its target of producing 5000 model 3's per week, but what should be a cause for celebration is instead creating concern as shares close lower on the day, off by 2.3%. >> the news was digested yesterday when we got an internal email from elon, congratulating everyone at tesla for making it. so the fact that they had sort of hit this 5000 plus number was not new today. what was new today was their overall delivery figures, which were a big miss. i think investors are now realizing that they made this mark late in the quarter and it will still be an uphill battle to make it sustainably week after week after week. >> tesla is set to be causing model 3ing -- pausing

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. >> it does seem that elon musk has some confidence in the company's manufacturing operations right now. it is a delicate time for the company, they should definitely keep that 5000 unit weekly target, but the expectation is that the pause in production will not affect their production targets going forward. it is not unusual for carmakers to take a break during the july tooliday or thereabouts check their facilities, do some maintenance, give the employees some time off. and tatas -- group has reached agreement to set up a european steel champion. the companies say they see synergies of 400 million to have

-- 500 million euros, and that the joint venture is for the long term. to come intod effect in 2019. are you more satisfied -- are you satisfied, more or less, with the negotiations over the deal terms? >> i'm satisfied. we've brought a negotiation to a successful end, but it is more important that it could address the four major issues for us. it addressed the structure problem to the steel industry in europe, that we create substantial value for shareholders with the synergies you mentioned before. and for the majority of our employees, we could secure a more promising future. but the fact that we remain shareholders, it is also a good cultural fit for our transformation. >> how does this joint venture that into a world where there is too much steel being produced? >> i think that is why components become important, so we can be much more competitive. we will not be able to achieve

the kind of cooperation we can achieve together and that is why the consolidation makes more sense. >> -- ceo has resigned, bowing to shareholder pressure, heinrich easing are stepping down days after the company signed a deal for a 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 and a brazilian playmaker have reached a preliminary agreement for a $4.75 billion joint venture. we knew about this back in december. but remind us exactly what this deal is. >> it has taken many evolutions as they have negotiated this, and that is partially because em of viewed as this brazilian champion. the government did have a say in how this deal turned out. what they have come up with is a

joint venture with a commercial aviation part of embraer. 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 this part of the company at $4.75 billion, which is a significant premium when you consider that it is all 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 and into today that airbus is having continued a320 andith its the two types of engines that go on the plane, and it is continuing to cause headaches. and what we have been reporting and hearing is that it will essentially lead to 30-40 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 traders said the documents related to the company's business in nigeria. democraticluded the republic of congo and venezuela 12 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 the key differentiating factors is that 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. to buy back as much as $1 billion of its own shares that might shake investor confidence, after a u.s. government probe earlier this week. the timing is interesting. would it have happened anyway at some point? >> it might do. glencore is having a very good year, we should remember the underlying business is strong, and the whole mining industry is throwing 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 market making operations, 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. if you think about it, they have lexical, who is big in the etf space. so germany is a big market. we don't want -- we know it's a very small dent to capital. and from commerzbank's perspective, this is part of a restructuring, simplifying, 4.0 stripping out costs. no real surprises. it should be mildly beneficial to both banks. ♪ >> dell has announced plans to trade publicly again. this part of the deal, dell will dvmt trading stocks, reflecting a big deal. >> you were definitely not the only one who didn't understand the deal. this was very convoluted. surprisingly, it does simplify their structure. but like you said, what they are doing is they are buying the dvmt,ng stock, dd mt --

for vmware. they are not buying vmware, which a lot of people expected them to do as part of this process. i don't see how this full buyout of the tracking stocks really solves dell's problems. they were looking at this because they had the pesky debt load from their buyout with silver lake. 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. 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. >> as management warned back in april when they had a call for first quarter earnings, they did acknowledge that they would spend more on marketing for the galaxy s nine. shipments have not been as good

as anticipated. last year, they ship 40 million s8 models before the s9, probably missing targets. shipprobably couldn't even 30 million this year. so i think the miss was well anticipated, although we did see that it is still a little bit talk fort the recent earnings. that is why, sentiment wise, it is not that good. but the company may come out in three weeks time with a more bullish guidance on a second half outlook when they have their earnings. >> indebted chinese conglomerate hna group faces new turmoil following after it lost its number two executive. what else do we know? >> we know it was an accidental death. reporters did speak directly with the french police. they confirmed that the autopsy shows this was an accidental death.

you know, he fell, a very high fall and 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 they have had, and with the plan of restructuring. we have yet to hear from them exactly what is 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, if you can take a look at my bloomberg. this is the fa function and you can see that macau, the yellow

bar, is falling short of revenue. haidi: there are about 30,000 functions on the bloomberg, and we always enjoy showing you are favorites on bloomberg television. maybe they will become your favorites. here's another function you will .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 shape the world cup, pele or rinaldo spring to mind, but how about the american executive who admitted to taking bribes, partly as a result of his testimony in the wiretaps he wore? international investigations have led to the arrest and convictions of dozens of corrupt soccer officials, including blazer himself. >> once they got blazer, sat him down, 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, swiss keys rated a a five starraided hotel in zurich and arrested top executives from 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 media contracts, all pushing for a particular country 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 we see revenues 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 to and from trump, and a suite in

tower for himself, and apparently another one just for his pet. but like al capone, his undoing was tax evasion. he struck a deal with the fbi and provided live information for a year-and-a-half, while still on the all-powerful executive committee. they were the two dozen or so men who decided, in secret, who gets to hold the world cup, a decision worth billions of dollars in media rights and infrastructure projects hanging on it. >> very quickly, a culture of behind the doors dealing, bribery, and sketchy behavior developed in this committee. >> blazer alleged the vote to give south africa the world cup was rigged. he also took part in the most all, aious decision of decision in 2010 that had the world cup go to 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 it. moste x members from 2010,

are now either banned from soccer or facing investigation. in the u.s., $300 million from around two dozen guilty parties has been collected so far. six of them, former x co-members, including blazer. blazer pleaded guilty to 10 corruption charges, but died in 2017 before sentencing. as part of a cleanup operation to restore credibility, they removed the power to award world cups from the ex-co, and handed it to the 200 or so national members. >> in theory, you can still buy them, it is just more people to bribe. there are still questions about transparency that haven't been answered. and my personal feeling is that develops a transparency situation, it will be hard for them to be credible. >> in june, the members chose the u.s., canada, and mexico to host the 2026 tournament. haidi: well, 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. ♪

david: let me just ask you about the country you are from. khaldoon: the united arab emirates is a federation of seven emirates. abu dhabi is the largest. the oil and gas are not going to be here for the next thousand years, it is finite, and we have to prepare herself for the -- ourselves for the future. david: you have a group that bought a team in the premier league in england. khaldoon: over the past seven years, manchester city has been the most successful club. david: do you ever go down and say let me kick a couple balls with you? khaldoon: no, in order not to embarrass myself. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright.