officials saw an economy operating in top gear. the fed will hike once more. wage growth is still sluggish. the stops tout all reach a target.

it becomes very important so we can be more competitive. we have a fired side chat. ofthere are wide ranges estimates about what it is. welcome. it this is your weekly review of the most important business news from bloomberg television around the world. let's start with a look at the top headlines.

voters in mexico want to the poll on sunday. the results turned out to be historic. forn other decisive win populism. there was crime and poverty. >> went very smoothly and quickly. the range he won by was anonymous. point looking at a 30 lead over his nearest rival. >> he has talked about a number of things that are unique to

mexico. that is something everyone is going to watch for. he made it a priority in his acceptance speech to say he was concerned for the poor and they would be forefront in his legislating. maybe he opens the taps. they will look at central bank autonomy and oil deals. >> the german chancellor could hang in the balance today. she is trying to get a compromise with coalition partners. whileut that on hold talks resume. >> everyone is on pins and needles, waiting to see what happens.

they are set to meet with the chancellor to discuss the standoff over immigration. it's anyone's guess how this will play out. tighten migration and keep the sister party in the fold. there will be places for refugees already registered in other countries. he will remain his position. >> this time we do have a deal. she had three big challenges. she wanted to appease her interior minister. what the government has agreed to is to create transit centers for migrants. they will determine who can stay in germany and those who can't

will be quickly deported. to do that, the german government has a bilateral deal. >> the trump administration is letting things. 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. they are due to pay $400 billion in an escrow account.

that 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. >> is 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 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 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 a trade war, but will take measures in response to others." >> this is of course, the first route, $34 billion 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 the present of your the force of the national association of -- people

to keep the moral high ground that it sees itself having. it pays itself as the victim in trumps warictim of that he is initiating. that is the line that he keeps pushing the continues to check on this table. stopping -- unemployment rising. adding 13,000 jobs for the unemployment rate, rising to 4%. we will not chase the course by itself. if we do see a way for people coming back, if that does seem to be the case, causing a adjustment. >> one, the u.s. economy will continue to doubt others. two, will be looked to navigate trade tensions.

and i will at least once more. there is never sent from the rocksolid as well. they could possibly negate the positive effects. >> they want to make trade deals better, i think we'll start to see the deals. as a economists. one of think that the looking for his negative impact of data from the anxiety. places will be in the metal industries. we are to thought in the downstream industries. clear evidence and data that the anxiety of trade

as being harmful to the industries. i think that's probably because these people it are stan of the president is driving the world towards a better equilibrium. still ahead, exclusive conversation with a chief executive of the airways. his plan to shake up the carrier and reverses losses. upnty of company news -- next, more of the week's top business headlines. below expectations and is not all by the terrorists. >> concerns about trade. >> this is bloomberg best.

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. the white house and the saudis later 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 want 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 president donald trump's 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 got what he wants to some extent with the actions we are 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 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 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. blaming recent currency volatility on dollar strength and external uncertainties. earlier, 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 on the yuan until we get a couple of days of strength. the concern around the currency will not go away.

we saw the capital outflows story at the end of 2015 and 2016, 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 those sanctions, countering the impact of those sanctions. >> resilient car sales. top u.s. automakers reporting high vehicle 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 and 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. there is 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 climbing 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.

>> theresa may's top minister 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 in a series of big 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 definitely a case of her trying to inch towards a softer end of the brexit curve. this rhetoric might actually strengthen theresa may's plan when she is negotiating with her. >> 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 then many progressive campaigners have 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 the industry there. ♪

>> as talk of global trade wars heat up, new england's most valued export is already in hot water. >> this trade war is going to have some really negative effects on the lots of people in massachusetts. ♪ >> lobster is one of the nearly 700 american asked words that china is targeting for tariffs of 25% on american next boards. it is a response to president trump's 25% tariffs on $34 billion on imports from china. massachusetts lobster man billy mahoney, says, he is already been $.50 less per pound on the news. >> if they will pass the deal, 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 increase 30% year-over-year.

>> i hope the domestic market can pick up the slack, but i am not very hopeful. >> also cut in the tariffs crossfire are steel manufacturers. >> some of it 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. ceo jim nott 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 after october. they are not sure they will able to get the products, so they are booking in advance. >> some worry that this will 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. is 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 europe's biggest steel merger in more than a decade, with reaction from ceos on both sides of the deal. straight ahead, highlights from the week's most interesting interviews. an airline ceo says investors and passengers can expect changes. >> we are not shy, we're taking

the rules off. haidi: this is bloomberg. ♪ retail.

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haidi: you are watching bloomberg best, i'm haidi lun. businesses around the world are feeling the impact of tariff >> scaling back global ambitions. >> we stuck to it. it is a punctuation point in a transmission program. we have a wide range of businesses as well as a career line. interest inested -- engineering, our maintenance

overhaul operation. , virginpartners australia. the past takes a career line, we have the complaint -- that took over that. a incredible job of leading that through a fascinating time of growth. the shirtless salary top of making it far more fit for purpose, and taking overhead out. manus: you cut back some risk. what the marketplace is going to want to know is do you plan to take more routes out -- where is the equilibrium for you? more routes 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.

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 not profitable for us, we are not shy now in taking them off. so regrettably, san francisco, edinburgh didn't work for us. 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, stoppress -- 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 riksbank committed to a plan to raise rates toward the end of the year. bloomberg's nicholas magnuson spoke with the riksbank governor, stefan ingves, about

that strategy. stefan: the majority view is that, on the one hand, things are moving on quite nicely in the swedish economy, and in terms of the growth numbers in the global economy. but on the other hand, inflationary pressures are actually quite modest. and given that that is the case, we really would like to see that inflation stay at our inflation target, 2% or close to 2%, and with that background it would be just 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 indeed raise rates at the end of 2018? stefan: that is our projection at this time, but it is very important to keep in mind when you are talking about growth slowing down that the growth

numbers have been very good for almost, like, five years or something like that. so aggregate demand in the swedish economy is high, and that is also what you see if you look at what is going on and what happens in the labor markets, where we have increasing shortages of labor. in that environment then i do not think that would be much of an issue, because growth numbers will be quite favorable for several years to come. haidi: u.s. financial markets were closed wednesday for the july 4th holiday, an opportunity for many to take the day off and enjoy a barbecue. recently, bloomberg's joe weisenthal visited minneapolis federal reserve president neel kashkari, the only fed official who regularly uses social media both 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 inflation.

neel: in a recession, economists tend to raise the natural rate of unemployment. they think that people get dislocated, skills 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 than 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, is it 4.5, or is it 3.5? 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 then people are really slow to bring it down. neel: that is just an observation i have made. you know, in the very deep, great recession, the unemployment rate hit 10%, most economists' estimate of the natural rate of unemployment ratcheted up very quickly.

and then there was a narrative -- and i was echoing it, too, saying all these people who left the job market were permanantly lost. they would never come back. that has proven to be dead wrong. we would have been better off not having made that assumption than only slowly learning that it happened to be true. joe: 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 potentially 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 4, maybe it is 3.5. if we, in this cycle, say ok, it 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 revisits all of their assumptions. would you support something like that at the fed? neel: i am not opposed to it, but i will say 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, say 3% as some have recommended, i'm very skeptical that the american people would support it. i think there would likely be big pushback. we have worked very hard to get a framework that i think works. i think we should live by that framework, and that means actually live by the symmetry of that 2% target and not treat it like a ceiling. joe: the dots are a little bit higher, maybe four hikes this year. does that seem appropriate to you? when, as you say, the mistake the fed has been making so far has been running it too tight. neel: well, my view is i think legitimately we are moving closer to our inflation target. core inflation is now around

1.8%, 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 just wait and see how inflation evolves. look 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, maybe 2.5% federal funds rate, somewhere in that zone. 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 had production results to celebrate this week, but that excitement wore off pretty quickly. scarlet: tesla succeeded in hitting its target of producing 5000 model 3's a week, but what should be a cause for celebration is instead creating concern as shares closed lower on the day, off by 2.3%. dana: the news was sort of 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 just 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. yvonne: tesla is said to be pausing model 3 production, just days after meeting its target of

5000 cars per week. the news comes as some analysts question whether the company can sustain those high output levels. yesterday, it was like elon musk was declaring victory, we are a real car company now, and now they seem to be backtracking a bit. ville: it does signal that elon musk has some confidence in the company's manufacturing operations right now. it is a delicate time for the company, definitely hit that 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 or thereabouts to check their facilities, do some maintenance, give the employees some time off. francine: germany's thyssenkrupp and india's tata steel have reached a final agreement to set up what they call a "european steel champion." the companies say they see synergies of 400 million to 500 million euros, and that the joint venture is for the long term.

it is expected to come into effect in 2019. are you satisfied, more or less, with the outcome of renegotiations over the deal terms? heinrich: i'm satisfied. we've brought a two-year negotiation to a successful end, and what is most important is that we could address the four major issues for us. that we really address the structure problem to the steel industry in europe, that we create substantial value for shareholders with the synergies you mentioned before, 400 million to 500 million a year. 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. david: how does this joint venture that into a world where there is too much steel being produced? natarajan: 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 cooperation we can achieve together and that is why the consolidation in this situation makes a lot more sense. >> thyssenkrupp's ceo has resigned, bowing to shareholder

pressure, heinrich hiesinger 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 hiesinger, who has been criticized for the company's declining revenue, rising costs, and falling stock price. david: boeing and brazilian planemaker embraer 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 embraer is kind 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 $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 issues with its a320 and 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. it also included the democratic republic of congo and venezuela between 2012 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. >> glencore is 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 products and 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 zürich. 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 4.0 restructuring, simplifying, 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 be buying out 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 tracking stock, dd mt -- dvmt, 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. they probably couldn't even ship 30 million this year. so i think the miss was well anticipated, although we did see that it is still a little bit below what the recent talk for 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 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 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 raided a five star hotel in zürich 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 europe, and a suite in trump 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 contentious decision of all, a 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. of the x members from 2010, most 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 until fifa 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 being 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 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.