david: coming up on "bloomberg best," the stories that shaped the week in business around the world. turmoil in turkey. each day brings new twists as investors look on with alarm. yousef: the market reaction really tells a powerful story as to the insufficiency of the latest move. >> turkey is trying to rewrite the crisis management chapter in the playbook for emerging markets. david: the u.s. and china resume talking about trade talks. cryptocurrencies go on another

ride, and elon musk's plan to take tesla private puzzles the -- cryptocurrencies go on another white-knuckle ride, and elon musk's plan to take tesla private puzzles the market. max: the sec is taking this to the next level. it has become a more serious investigation. keith: tencent and walmart lead a parade of earnings reports. selina: we are seeing this first profit drop in a decade send shockwaves. ken: this is likely the earnings peak in retail earnings. scott: the challenge of getting excited about equities, all the investing in e-commerce. david: it is all straight ahead on "bloomberg best." hello welcome. i am david westin and this is "bloomberg best," your weekly review of the most important business news, analysis, and research from bloomberg television around the world. from the moment markets opened monday, the focus was on turkey. a country in the grip of political and economic crisis.

>> the turkish lira on a roller coaster ride this morning as the country's central bank announced a list of measures it does will will support financial stability and proper functioning of markets. president erdogan has defended the turkish economy, accusing the united states and others of waging war. yousef: the central bank, doing something but not with the market was hoping for. it was described as something is better than nothing. they are freeing up liquidity, $6 billion worth. the banks have parked less capital with the central bank. they said they will do whatever is necessary to preserve financial stability, but not the interest rate it has been that has been a issue for president erdogan, who said it was a tool for explication over the weekend , and the market reaction tells a powerful story as to the insufficiency of this latest move. >> you've got private sector foreign-currency liabilities representing a large percent of

the gdp.ey face sanctions from e re importantly, the president erdogan basically telling the central bank not to raise interest rates. that is fundamentally the issue here. foreigners aren't rewarded for taking currency risks. david: turkish president, ecip erdogan, is again sounding defiant in the face of pressure from the united states. erdogan said turkey will boycott iphones and american electronics and the country will stand firm. , yousef: this really took the rhetoric to a new level. he has always been known for speeches with fire and fury, but a few key points show that it is a much more nuanced, but very targeted messaging he is pursuing. you mention some of the key

points, also threatening they will be boycotting american product. another key point, saying the u.s. has been targeting many economies around the world. >> the threat was met from a simple message from white house adviser john bolton. the u.s. will not negotiate. >> this raises a lot of questions about where nato is headed and if turkey fits into the alliance at all. second of all, on the face of it, it is a remarkable dispute , because you essentially have -- the u.s. has said it wants this american asked her who has pastor, who has been detained for two years, back. the message from john bolton to the turkish ambassador was we have nothing to discuss until he is released. we really appear to be at a stalemate here. jonathan: turkey is still trading blows with the united states, announcing tariffs on $1 billion of american goods including cars and cosmetics.

kevin: president erdogan doubling down on his criticism of president trump's decision to implement tariffs from the u.s. let's look at what the latest tariffs on u.s. goods are. cars, cosmetics, 140% tax on out and 120% on cars. >> the real question in my mind is thinking about turkey g8 strategically. china is marching -- turkey geo strategically. it puts turkey in an important point from a western standpoint. you have seen it back off from nato. nato and is turkey's overtures toward russia, arms purchases come a step in that direction or is it going to remain western focused? >> turkish lira gaining ground. authorities making it more

difficult for banks to shore the currency. they have done a de facto rate hike, but gone around it by making it more expensive to borrow against the lira. if they did hike interest rates properly, it would be a major step forward for turkey and we would see a wider e.m. rebound. scarlet: u.s. stocks on a broad-based selloff domineering declines around the globe, commodities as well. materials and energy stocks are the worst performers because we are seeing weakness and metals. >> when you look a lot of the base metals, copper and even the precious metals space in gold, you have to wonder what it is telling you about the economic picture globally, particularly in emerging markets nations and in asia and whether this will be something that is more worrisome in the u.s., as well? is gettingey

some outside help. as much as $15 billion in the country. president erdogan reached the rewards of standing by its gulf ally in the diplomatic standoff with saudi arabia. $15 billion will not be a check, but a sentiment about investing and standing by your neighbor. alaa: it is a search for allies. you said they are reaping the rewards of the qatar boycott. one of the things that came from the qatari side, not the turks, the $15 billion is coming in projects, investments, and deposits. we're still trying to figure out that division of the components. minister merkel is reminding president erdogan he has a potential ally in his country's biggest economic partner. a meeting of finance ministers on a phone call yesterday. she has had her issues with erdogan and now, it looks like she is offering him an olive branch. >> a line from german officials, people close to angela merkel that there is no aid on offer. nothing like $15 billion from erdogan's friends in qatar. even anything much less, but there is a notion of an olive branch and germany also has huge economic ties with turkey.

>> president erdogan dispatched his treasury and finance minister who is also his son-in-law, to calm investors on a conference call this morning. >> he was defensive about the economy, talked about the strength of the banks, roll up capital controls. he said turkey will now address its vulnerabilities and put plans together to shore up inflation and to address the fiscal imbalances of the country is suffering from. julia: trade talks between the u.s. and china are back on. the reaction from wall street, cautious optimism. it is talks about reopening more substantive talks. >> exactly. this is a step in the right direction. china and the u.s. are talking again. these trade negotiations broke

down two months ago and were at a higher level, the ministerial level, when the announcement was made that china's vice minister of commerce would meet with a fairly senior treasury official for international affairs. it is a glimmer of hope at least that there can be some solution. it is not to say these officials are just bureaucrats who will be pushing paper. they definitely have some sway, they have the ear of the ministers above them, but again, it is not at the highest levels , and i think for many people, this is almost a signal of not setting hopes too high of having deliverables at this meeting, but really paving the way forward to get talks started again and see what the sides are willing to offer. president donald trump prodding china to offer more at the bargaining table as the countries prepare for their negotiations for the first time in almost two months. pres. trump: we won't do any deals until we get one that is fair to our country. >> you hear a lot from china about the thucydides trap.

the rising power will always come into conflict with the incumbent power and this leads to war. they are pessimistic about that. americans say no, the u.s. is not trying to keep china down. it is just trying to get china to follow the rules by allowing protection of intellectual property by american companies and by giving equal treatment to them in china. david: still ahead as we review the week on "bloomberg best," much more on the turbulence in turkey with insight from mark mobius and mohamed el-erian. plus, an exclusive conversation with an expert on cryptocurrencies who says market bubbles are actually good for the sector. >> it brings entrepreneurs, developers, it brings money. david: next, more of the week's top business headlines. hedge funds disclose their holdings for the second quarter end. the trend may not bode well for tesla. alix: fidelity cut their fund more than 20%.

this is bloomberg. ♪

david: this is "bloomberg best." i'm david westin. let's continue our global tour of the week's top stories in silicon valley, where elon musk insists he has financial backing to take tesla private. the devil, of course, is in the details. >> elon musk is elaborating on what sparked his move to take tesla private. the electric carmaker's ceo said the key to the gambit was the interest shown by saudi arabia's sovereign wealth fund. the fund recently bought a 5% stake. elon said he is continuing talks with the saudi fund and is talking to other large shareholders. do we have any idea who the large shareholders are and how far along these talks are? >> no. no, we have no idea about anything, in fact, and even with

the information that came out this morning from elon musk's blog post, there is a wide range of possibility that could've happened. i mean, we know there was some kind of concrete conversation between the saudis and elon musk. i believe on july 31, we don't know if they talked about price. the blog post said there was due diligence needed and some very vague things that needed to happen. we don't know if they came to any agreement. >> tesla's chief executive officer tweeting and blogging about how he will pull up the largest leveraged buyout of all-time. in the last 24 hours, he clarified the interest secured saying there is "no question a deal with the saudi sovereign fund could be close." then we learned tesla has formed a special committee to evaluate taking tesla private. explain to us the role of the committee.

>> it is sort of routine here. whenever there is a buyout of any kind, the board has to make sure they are representing the shareholders and not just management. they will make sure this is really a good offer and a good structure for shareholders. from there, we have to figure out how elon will fund this thing, what shareholders will turn their public shareholdings in for a private stake in this company, and see if there is enough of them so elon doesn't have to raise $70 billion to get this done. matt: to tesla now, and the ta le turns another page with the sec said to have sent a subpoena over elon musk's tweets about securing funding to go private. what does this subpoena say actually say about this investigation? >> what it says is the sec is now taking this to the next level. it has become a more serious investigation.

they will look deeper, particularly at the part of elon musk's tweet that says funding "funding secured." he seems to be getting ahead of himself and what he is putting out on twitter is causing the alarm with the sec. david: hedge funds closed the second quarter. let's talk about tesla in particular. people got rid of some tesla. >> big holders. fidelity cut their position by more than 20%. this is obviously before all the fracas around elon musk's plan to take tesla private, but this is notable because his plan depends on these big equity holders rolling over their stakes in to whatever the new tesla looks like. david: what is going on with facebook? brooke: a number of people bought facebook and people who sold their positions. you had george soros, shaw, all building holdings of facebook in

in the second quarter, and it seems those hedge funds that were buying came in after the cambric analytic a scandal, maybe saw the low point as an opportunity. if you bought on the earlier end, you may still be in the green. jonathan: the trade spat with the united states takes its toll. the euro zone, growing faster than initially reported in the second quarter. what is going on with chinese economy, and what is in their control and out of their control? >> people talk about china being buffeted by 20 sharks. deleveraging at home and trade war being imposed on them in washington, d.c. when we look at the week data out of china for july, it is the deleveraging which is the real driving force for the weakness. trade war is a risk, but the tariffs in place so far are too limited and have been in place for too short a period of time to really start biting into the numbers. >> the main reason why the euro zone economy grew faster than

previously anticipated was germany. the second quarter data was surprisingly positive. the main reason we look into the difference of the numbers is actually consumer spending and government spending, as well, that improved, which is good news. that shows the economy can grow on its own from the domestic strength, and despite all the fears about the trade wars. >> petrochina is said to be planning a temporary halt of purchases liquid natural gas from the u.s. to avoid potential tariffs in the trade war. sources tell the unit of state-owned will increase buying from other countries or swap u.s. cargoes. how will halting u.s. imports affect petrochina? that will thing

happen is china is going to try to mitigated as much as possible. the sources i have been talking to are saying it wouldn't be hard for china, which just imports about 5% of their lng from the united states, to swap cargoes with other suppliers or buyers in the east asia region to minimize cost. right now, it looks like the strategy may be able to hold off large impact on the company. emergencyna has taken measures to stabilize the peso. raising interest rates five percentage points and announcing an fx auction. these moves come in response to the turkish lira's downward spiral ripping through emerging markets. >> what you have seen in latin america is when you have these kinds of negative external shock, most countries would allow the currency to devalue weight and absorb most of the external shock. that is how policy is supposed to work. you have argentina, where the

currency has depreciated by almost 40% since they hiked interest rates from 23% to 40% back in may. since may, the currency has appreciated another 40% or almost 40%. clearly, that was not enough so they have to think about alternative measures. francine: shares in the parent company of the operator of the bridge that collapsed in genoa have lost a quarter of their value this month, as the telly italian government began the process of revoking a toll road concession. bloomberg says the board is planning an emergency meeting to assess the impact of the disaster but not until next week. of course, this is a human tragedy, a tragic loss of life, so we can't forget that, but if you look at the markets, atlantia was down some 25% on this license revoking concern. can the government unilaterally revoke it? will they have to pay damages to them? >> they can revoke it and, according to the terms, they do have to pay damages.

if there is no penalty reason that would allow them to revoke it. at this point, we don't know what the entire parameter of what the government is talking about is, but there is no rest question the company will strongly defend its interests. >> bayer shares plunged by the most in 15 years. investors weighing the costs of a legal battle after monsanto was hit with $259 million in damages. this on the news that roundup causes cancer. do investors expect this to hit the bottom line? >> investors are worried about uncertainty here. they are concerned about potential legal liabilities. they are concerned this could lead to a wave of other lawsuits, and that even if this verdict doesn't stand, bayer may need to pay settlement costs for other suits. donald trumpsident

says he has asked the exchange commission to and quarterly reporting in order to ease regulations and spur growth. we have to draw a distinction between ending quarterly guidance and ending quarterly earnings. >> there is a difference, and this would be a bigger seismic shift if we ended quarterly earnings reports and go to twice -a-year system. we have been hearing from a lot of investors. they do feel the pressure on earnings these days on the stock price every quarter is really holding back companies from putting more money into research and development, which could in the long run benefit companies more. on the flipside, this could reduce transparency for shareholders on what is going on inside the companies, what executives are doing, how they are getting paid, and what the value of their shares actually is. ♪

david: you are watching "bloomberg best." i'm david westin. cryptocurrencies whipsaw this week. the market lost 10% of value in a 24-hour stretch before advancing. erik schatzker spoke with ethereum co-founder joseph lubin, who wasn't fazed by all the swings. joseph: this is something we have seen so many times in the blockchain ecosystem since 2009, when bitcoin was invented. we have seen rises and falls. we have seen what many call bubbles, and i would agree. erik: that what happened last year was a bubble? joseph: we have seen six big bubbles, each more epic than the previous one. each of these bubbles are astonishing when they are happening, but when you look back, they seem like little

pimples on a chart, really , because the growth has been exponential. each of these bubbles has the advantage of bringing attention into our ecosystem. it brings entrepreneurs. it brings developers. it brings money. it brings the prospect of building fundamental infrastructure and creating more value, so what we have noticed is with each of these bubbles, we have a tremendous surge of activity, and that is what we are seeing now. so we had a big bubble. i think we are something back -- back to something like november, december prices, which we thought were incredibly high. since then, we have probably seen two orders of magnitude -- increase in developer activity, increase in scalability, technology. it is actually going quite well. erik: does it worry you at all that the developers, the entrepreneurs, the talent, and

the money that enter the crypto ecosystem on the way up exits on the way down? joseph: no, we are not saying that. we see trader types feel like their fortunes are rising and falling with the price of bitcoin and the price of ether. really all of these tokens are incredibly correlated. so it is really the trader types that are moving them around. erik: don't you feel it too? joseph: not -- erik: on paper, surely, when ether is at 1300, you are a much wealthier man than you are today. joseph: sure. we can look at the price and make growth plans and projections, and we are still on track, basically. david: coming up on "bloomberg best," some telling conversations around the week's central stories. investors, analysts, and policymakers talk turkey. the cause of the crisis, immediate effects, and the hard lessons. >> people's understandings of

the collaterals they are financing and the rates are starting to converge. david: this is bloomberg. ♪

david: welcome back to "bloomberg best." i am david westin. looking back on the week, turkey dominated the discussion on bloomberg, and the implications of that nation's crisis extends far beyond its borders. here are highlights from our conversations on the week's hottest topic. ? >> i don't want to sound like a doom monger, but it seems like this is a really unique set of circumstances. is there any other precedent we can look to, either in turkey or in other emerging markets, that can show us a way out of this crisis, or is everyone stabbing in the dark? william: i think emerging markets have been through these crises at various points.

nejra: exactly like this? william: the difference i think we are seeing here is that policymakers don't seem to be responding in a way that markets are wanting to see. historically, what we've seen when we have had large currency falls is the imf come to help. they raise interest rates, keep real interest rates high -- nejra: >> all of which turkey is not doing and says it will not do. iam: the question is what changes? some governments have managed to get through this without the imf. russia had a currency crisis in 2014. but even then, we had some move toward reforms higher interest , rates, a shift toward orthodox fiscal policy. turkey doesn't seem to be doing that. my concern would be there needs to be a deeper crisis to bang heads together. >> i didn't realize that trump would be so tough with regards to bond selling in getting his return. now we see a real bargaining taking place between the two leaders, and both of them are strong, and are probably not

willing to compromise. >> a question for you, mark, about turkish banks. the u.s. bonds trading $.50 on the dollar in turkey. do you have a comment, and if you were a depositor in a turkish bank, would you be taking the money out? depositor in a turkish bank. i got most of my money out, but i am keeping some in, because i think longer-term, it will be an interesting market. but if you've got turkish lira, you are losing -- in my case, i had a little turkish lira, so i'm in pretty good shape -- but i'm concerned about any currency controls. if i want to get that money out, this is something we would have to look at. ? >> we are back to mercantilism, and i think that's the real story. it is potentially damaging to the world economy, in particular to some of us in the developing world.

tom: if we are back to mercantilism, the president is in some ways dealing with that this morning. the contagion risk to yourself, to africa do you link it to , turkey, or can you link it to the fact that we are back to mercantilism? rob: well, we have been affected by the currency instability. the south african rand has gone down from about 13 to the dollar to about 14 something to the as a result, a direct result of dollar, the contagion from turkey. we are affected. but i think, more fundamentally, we have been subject to some of the punitive tariff of the united states on steel and aluminum products -- they were imposed on us as well and not some other developing countries. we have been subject to those,

we do not believe we are a cause of national security threats to the united states. we don't believe we should have been, but we have been. we are now under investigation for the extension of those tariffs to automotive products as well. the rest, i think we find ourselves in these global trade wars. >> the emerging markets, as a general matter, and like other fixed income markets, have had far too much access to capital. in the case of turkey, they took a lot of non-turkish lira denominated debt to further the borrowing desires. so what you see in those markets is not only are they tight but , put optionality in those markets is expensive. it indicates that the investor community views those as not only tight, but ready to move down. in fact, we are not people who bet on those currencies. if we use them at all, we use them to hedge other risks we have.

we have seen a number of currencies that have operated in sympathy with the turkish lira, for example, argentina, where our ability to hedge became suddenly far more difficult because market makers went away. i think you're going to see that around the world. >> so the psychology that is exposed, there's a sentiment that is exposed by this sort of reaction. how much further do we have with that? are we foretelling something here, in the broader market? >> i would say it is unclear to us whether we are in the last inning of the first game or the first inning of the next game. a lot of points we see bubbling up across the world would suggest that people's understanding of the collateral and the rates they are financing it are starting to converge. ? >> we talked a little bit about emerging markets. which ones are flashing on your dashboard as ones to be concerned about? do you think we have passed the

immediate contagion phase from turkey. esther: well, of course, turkey remains -- we have seen on this slump that the south african rand is vulnerable to contagion effects. this is due to a current account deficit. what we have seen in general is that those who need extra financing who have current account deficits are most likely to also slump if we see any higher volatility in turkey. >> how week does the euro get from here? turkey is something that had been weighing on the euro, what is your call? esther: i think some of this concern that the ecb could get more cautious is going to fade in the near term because right now we are not seeing any effect on the real economy in europe. they are also going to stress price stability.

we are on target and we are going to continue with the normalization path we have set out. ? jonathan: what would you do in terms of managing exposure to a country like turkey at the moment? >> so initial conditions matter a great deal. if you are overexposed to turkey, i would reduce exposure. i think turkey is trying to rewrite the crisis management chapter in the playbook. it is trying to go without interest rate hikes, it is trying to do it without the imf. that is hard. it's not impossible, but it's hard. jonathan: it looks like they are dealing with a symptom but not with the illness, and if they continue to explore this unorthodox crisis management, how bad does it get before it gets better? >> so the major concern whenever you look at these things is what is a technical dislocation becomes an economic and financial dislocation.

it plays out through the following channels -- corporate bankruptcies, because of currency mismatches; massive pressure on the banking system, so you get increased dollarization; higher inflation, and then recession. that is what turkey must avoid. they need a circuit breaker. you and i have talked about this. they need a solid circuit breaker to stop technical contagion from becoming economic and financial disruption. jonathan: the word i keep hearing is idiosyncratic. have we gone beyond idiosyncratic for emerging markets? >> oh, yes, we have. we see correlations going up across the board in emerging markets. we are in the midst of a contagion phase that is impacting both strong and vulnerable economies. that is going to provide opportunities. if i were back in the game, i would be saying this is great, look at this, the market isn't distinguishing enough to create strong and weak names.

we have gone beyond that. we are in the midst of a contagion right now. ♪

david: you are watching "bloomberg best." i'm david westin. let's resume our roundup of the week's top stories with a focus on earnings. tencent was one of many firms around the world reporting quarterly results. ? >> the crackdown on online gaming in china is hurting tencent. the chinese internet giant suffering its first profit drop in over a decade. this is the owner of the messaging platform. it has struggled to secure approval from chinese regulators to monetize some of its most popular online games. was this the reason why the results disappointed, and it is likely to weigh on results in the coming months and quarters?

>> we are certainly seeing this first profit drop in at least a decade, sending shockwaves across the investor community. there were muted expectations given these regulatory changes, , but what we are seeing is even worse than expected. many know tencent as a social media giant, but at its core, tencent is a gaming company. it has significant revenue from games, and the fact that they can't make money off their most profitable games is a huge problem for them. ? >> wal-mart rebounding, the largest retailer posting its best quarterly u.s. sales growth in a decade, fueled by major grocery visits and online success, sending shares soaring. >> this is a tale of two companies. walmart's u.s. business is performing amazingly. greg foreign and his team that run the u.s. business have really turned this company around in the last couple years. the challenge in getting excited about the equity is all the investing the company is doing in e-commerce.

they are going to close with flipkart in the next couple weeks. that company loses $1.5 billion. their own e-commerce business in the u.s. continues to lose money. they said the losses are going to be more than the anticipated. that is the challenge as an investor. we have this great supercenter business taking share really well, and then with all these losses on the other side. ? shery: macy's earnings topped expectations, and investors are concerned that the department stores spending and shares are sliding. they have beat estimates for what five consecutive quarters, , and are still not convincing investors. what's the problem? >> they raise guidance three times this year. all the news coming out was positive. i think it may have a lot to do that if you look beyond the second quarter into the second half of the year, this is likely the earnings peak in terms of

retail earnings. our indexes going to be up 19.8%. it is unlikely it will come close to that in the back half of the year and it is likely that is going to be the case for a lot of retailers. guidance is lower in the second half, and you have the specter of amazon, which is constantly present, given that the stock has been up. i think that is what investors are looking at. ? >> home depot's second quarter represented a bounce back from a slow start to the year, when bad weather cooled construction projects. what cause that, that then recovered in the last quarter? >> in the case of home depot, we really did see an unseasonably cold winter that dragged on and on. what they said last quarter was that what you were seeing was all the clients in the gardening department, and that without those declines you saw in the gardening department, sales would have been where folks expected. we saw the makeup those sales in the quarter as i had expected.

they had telegraphed in that first quarter earnings call that may comparable sales growth was of double digits, really strong. we had some inkling that was coming. ? >> cisco appears confident that an overhaul of its computer networking program will keep boosting corporate demand. the company gave a bullish forecast for the current quarter. they also posted higher-than-expected profit and reported sales growth rose for the third straight quarter. >> if you look at our performance, we have clearly driven a significant amount of innovation, our teams have done an amazing job and at the same time we've had a very strong global, macro economic environment to operate in. right now we obviously have some , dynamics with the rising we have some uncertainty in some dollar. of the emerging countries, we have got the trade dynamics. those are things we don't necessarily control, so we will have to deal with those as they evolve. right now, things feel pretty good. ?

francine: it's the end of the road for nvidia's crypto gold rush. the company says the sales of graphics chips to minors were rising faster than expected. it expected to sell $100 million for its second-quarter but only managed $18 million. they say revenue is likely to disappear entirely going forward. what does that mean for bitcoin? >> well, we have seen bitcoin drop 70% last year. bitcoin certainly doesn't feel as hot as it did. but, that said, we have seen cryptocurrencies drop as much as this in the past. we have seen them drop more than 90% and then comes storming back. we are near levels that look technically quite interesting, but i think the coming months will be telling. ? >> -- having an up-and-down day, they be the highest estimates

under news it is studying a potential $700 million usd expansion. good numbers here. what's behind it? >> we are happy with the numbers, thank you. it's a great result, australia is a strong result. a strong result in north america for us. a little softer in asia, but the geographic diversity of our footprint means we have been able to pull together a very good result. ? guy: shares in denmark's -- the biggest turbine maker, softening the outlook for turbine manufacturers. the company also came through a narrative guidance on revenues and margins. a lot of what you said this morning sounds cautious. what is it you think that people are seeing in the numbers you posted today, in the outlook you posted today, and the buyback you posted today, that you think is encouraging people to buy the stock? >> overall, we deliver. we have high activity in

competitive markets. stopping --e, starting from the top, intake is 45% year-over-year, leading to a record high on the backlog. i think that is a strong message. ? >> german industrial services provider bill singer has reported a quarterly net profit for the first time in over a year and beat the street expectations. talk me through your return to profit here and your outlook for building on that in the future. >> revenue is up 10%, therefore profits are up. profits are up. i think the top line shows that earnings momentum is established and we are on the way to delivering on our strategy. the good news is that the kind of businesses we are in, industrial process businesses in europe and the middle east in north america, they are stable,

and they continue to drive our orders. ? >> can of business is booming. i saw what you did there. the industry is on track to generate legal sales this year, $35 billion by 2030. investors are looking to get in on the green, and the latest in business comes from the grown-up your maker constellation brands. it is making a $3.8 billion bet , the world'swth largest publicly traded cannabis company. >> we are in the beverage alcohol business. obviously, this is the first opportunity for an aligned and complementary type thing since prohibition. in fact, this is sort of the end of a type of prohibition, at least on cannabis. we see it as a tremendous opportunity to add to our portfolio. >> so when we make a beverage that has no alcohol in it and no

calories, causes friday nights to be uplifting, positive, you don't get sleepy, you get happy. if i can make that, make it with them, make it consistent well branded delivered to you for the , type of purchase you want, that's the future. the reason i like constellation is they saw that before anybody else. ? >> a sudden shakeup at netflix. the ceo plans to step down after eight years on the job, during which the streaming service transformed itself into a content powerhouse. wells says he is leaving to focus on philanthropy, and will choose his successor to ease the transition. how sudden was this? how surprising is his resignation? >> this was a surprise. i don't think anybody was really looking for this announcement. there had been no speculation. the stock is pretty much unchanged, which indicates that the market is perceiving this as a fairly orderly transition.

david is going to stay, as you mentioned, to handle the transition. it appears to be a little bit of a surprise, but not a big deal. ? >> maersk has announced a string of units on the nasdaq opening in -- copenhagen. it is the latest step from the -- step for a complete exit from the energy industry. the company has said it wants to streamline the structure and focus on the core transport business. >> we have looked at all options for drilling. we believe this is the option that will create the most value for shareholders. the reality is that there are many great companies, but there are not a lot of companies with very strong balance sheets. all the other possible transactions involve some kind of merger, which would mean that we would probably end up having more exposure to the drilling sector rather than less. we actually think this is a good

solution, and it will allow our shareholders to remain invested in a company that will do well in the coming years. ♪

>> you can follow more on the stories and all the day's trading on our markets live blog. you can get a market run down in one click and there is commentary and analysis from expert editors. you can find out what is affecting your investments right now. david 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 favorite, as well.

here's another function you will find useful. it will lead 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. ♪ >> personal data doesn't get much more personal. that is your dna. consumer testing companies has promised that in exchange for a vial of spit, they will and cluesr heritage to your health. the industry has grown in popularity. sales are projected to triple the next five years. watch out. after the test is done the , company still have your genetic data, and there are few limits to what they can do with it. >> if you read their privacy and policies for any of these genetic testing companies, they actually outline for you very clearly all the reasons you might want to think hard before you participate. recently, 23 and me made a deal with glaxosmithkline that allows -- that provides them data to

develop drugs. >> these agreements also say the company may have to share data with law enforcement if there's a court order. they haven't yet complied with any request, but they may not need to. authorities say this is the face of the golden state killer. police in sacramento believe they cracked the long cold case of the golden state killer by matching dna from a crime scene to one of his relatives through an open source genealogy website. in 2008, congress passed the genetic information nondiscrimination act, which is meant to bar employers and health insurers from using people's genetic information against them. >> they could use your genetic information to decide whether to offer you a policy or not. >> but the products do what they advertise, right? well, yes and no. >> one thing they can definitely, 100% tell you is other people that you are closely related to. but after that, you get declining accuracy with every other application. >> for example, breast cancer.

>> what if you get a test result back that says you are negative for one kind of breast cancer, but maybe you are at risk for other kinds of breast cancer? there are thousands of markers for these conditions, and they are not well understood. >> some consumer dna companies also claim to give you further health insights. >> the science is not there in those realms, to effectively say how you should be exercising or eating or what skincare products you should be using based on your dna. >> even if you decide a dna test isn't for you, you may want to convince your relatives as well. their dna could inadvertently reveal a lot about you. so remember, before spitting into that too, it is not just personal, it is familial. david that was 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 businesses and analysis 24 hours a day.

that will be all from "bloomberg best" this week. thanks for watching. i'm david westin. this is bloomberg.

♪ taylor: welcome to "bloomberg businessweek." i am taylor riggs. jason: i am jason kelly period headquarters in new york. taylor: a lot going on in the magazine. tyson wants to be your one-stop shop for all things protein. jason: we look at tmz's shift from hollywood to washington as it tries to