>> coming up, stories that shaped the week in this around the world. they split decision in the midterm elections. the president's party keeps the senate. voters flip the house to democrats. >> the question, are they going to legislate or investigate? ramy: a split decision from amazon. the fomc has done is november rate decision. tesla decides in import share. decision to show up on the bottom line as companies report earnings. >> substantial justification for

the price when it comes to strategy, revenue growth. >> customers and volumes is the right thing to do. >> it is probably the most unwise business decision in decades. ramy: will a divided u.s. government have an impact on markets? investors size of political developments. -- up political developments. >> this will not have a big impact on washington or who we are. >> he got more of a mixed message. >> we have an atmosphere in washington it is not good and you can't change that overnight. ramy: that is all ahead on "bloomberg best." ♪ ramy: hello and welcome. " yours "bloomberg best, weekly review of business, news, analysis from bloomberg

television around the world. let's start with a look at the top headlines. opened itschina first international import fair in shanghai. >> chinese president xi jinping, sink tax cuts on imports in efforts to decrease trade imbalances. growth.d for inclusive >> in a world of deepening economic cooperation, practices like the law of the jungle and winner takes all only to present a dead-end, and inclusive growth for all is surely the right way forward. >> he talked about opening up the financial sector. then he talked about additional steps to open up other sectors including medical services and education. removing the caps on foreign

ownership. he talked about reform of the global trading rules. again, repeating the phrases we heard him say at davos two years ago and says he wants to see reform in the government eto. whether or not this will come to the point for those officials in washington and brussels see this an address this is yet undecided. it looks unlikely at this stage. this is more about moving, edging in a direction rather than a big bank. -- bang. >> the united states ramping up pressure on sanctions on 700 and 80. >> the maximum that 700 entities -- on 700 entities. >> countries need to know we will be strictly enforcing our sanctions. >> that is what is driving this. you can be fined upwards of $9 billion. for secondary sanctions they can

cut an entire company out of the market. they can put other measures in place to freeze assets in the u.s. they can have an impact but it has to be enforced. enforcement is like this year. >> what changed in the oil market today? maybe that weent have not yet got the details on much of the market. what was really missing was hard numbers. how many barrels, five when -- by when? have you priced oil six months out if you don't have answers to those questions? >> midterm results have come in pretty much with the market thought they would with the democrats taking a police 26 seats in the house and republicans gaining at least seven seats in the senate. >> this is the outcome markets were expecting. we always said midterms would be more of a political signal than a market signal. i think that has held up so far.

>> what does it all mean? out, immigration, obamacare reform. infrastructure, investigations and potential for some trade alliances with the white house. the populist streak that exists in the trump coalition also exists on the left. are they going to legislate or investigate or do both? >> nancy said last night about bipartisanship and getting together and uniting. andused the word "uniting" bipartisanship statement which is so important because that is what we should be doing. >> we have requested information from the treasury about everything from sanctions to deutsche bank. we know deutsche bank is identified as one of the biggest miner -- money laundering banks in the world. they are the only ones amenable

to providing loans to this president. we want to know some things about that. and administrative shakeup just hours at the midterm polls closed. jeff sessions announced his resignation. is this really a resignation? >> it appears jeff sessions was pushed out. we have all seen publicly what led up to this. president trump been hammering his own attorney general publicly in tweets and statements because he is of -- upset sessions recuse himself in the rush investigation. matt whitaker is the current chief of staff. he is viewed as a trusted trump ally. there are a lot of questions being raised by democrats as to what this new individual is going to do. >> we have the s&p now closing higher for the sixth time in

seven days. we are getting a little bit of an extended relief rally. closing basically at session highs. >> i have been surprised by the depths of the market move overall considering results for generally what was expected to happen. to have this much relief that the election is over is a little bit of a surprise. we identified back in the summer health care in financials as the key sectors to watch based upon the election. i am not stuck health care is outperforming financials -- and financials are underperforming. the stunner is how much the outperformance is on a date where we got a result we were expecting. thee are moments away from fomc rate decision. officials are expected to keep rates unchanged. with no news conference or updated forecast released today investors have only this statement to read for any signs

of a change to the outlook. >> the fed counselee's policy statements to send a clear signal -- counts on these policy statements to send a clear signal. the federal reserve is on track for a rate hike in december. business investment has moderated from a rapid pace. previously they said how strong it was but for some reason it pulled up sharply in the third quarter. household spending continued to grow strongly. the unemployment rate has declined, instead of just saying it was staying low. here is the most important part. they see the economy rising at a strong rate. inflation has slowed again in china. the economy drags and a trade war escalates. >> you have consumer price inflation holding at 2.5%. it is the highest since about 2014 if easter about the lunar new year holiday distortions. it is well below the government's target.

let's look at factory gate inflation, pvi. that the client for the fourth month in a row. it was in line with expectations but what we are starting to see is a trickle-down effect of the trade war starting to -- slow the chinese economy that is hitting the price of power at factories. >> the chinese government has noticed and is trying to prop up both the markets and the economy. there are lending targets. what they are saying should be done is large banks should put one third of corporate loans to smaller companies, private companies. that did not go over well in china today. chinese banks down 3%. don'towned directives always work out very well. heading for a 10-day decline, the longest streak on record. it will cut output after next week's meeting. american shale output and

iranian sanctions have markets worried. has opec lost control of the narrative? how does a gain control back? >> it does feel like to have lost control at the moment. they thought they had to deal with the u.s. and the u.s. of being credit we hard on iran, which was their common interest. what happened at the last minute is the issue date waivers which added about one million barrels back into the market. they will not make a decision, i don't think, but they have to come out with a strong way to show they are in control and can balance the market without too much friction between them. >> still ahead as we review the week on "bloomberg best," instant analysis of the election results from david rubenstein, gary cohn, and larry fi nk. up next, more business

headlines. positive momentum for pot. more states voted to legalize cannabis. >> expect to see a cluster affect. ramy: this is bloomberg. ♪

."my: this is "bloomberg best i am ramy inocencio. what could be an major twist and amazon'squest -- in quest for a second and maybe third u.s. headquarters? >> amazon's very public search for a second headquarters could be coming to an end. the world's largest online retailer is close to agreements that would set up only an hq2 but it possible hq3. will be arlington, virginia. city inr, long island

the borough of queens. what do you make of not one but two new headquarters? probably amazon was wary of re-creating the same problems it had with seattle. they had 45,000 workers, overwhelming transit, setting -- sending home prior crisis. you will probably bring in the problems to another city. you need to have areas of technical talent. they probably decided they could go smaller in each city, get the tax benefits and tap the resources of talent. the signallk about it will not budge on its budget. your finance ministers revisions to comply with the ruling. thatinance minister said remains open dialogue it is not

changing his tact. >> the european commission and italian government continue to butting heads over the spending -- butt heads over the spending bill for 2019. they have asked the italian government to cement a new version of the plan. i spoke to the head of the group that said italy needs to show it is credible. >> credibility is the word. we need credibility in the numbers, in the strategy. we need credibility for the future. >> the country's finance minister insists his government's budget will remain unchanged. he said this after meeting with the euro group's president. >> the government intesa confirmed the main pillars of the other plan. >> they can't make any serious changes. they will make serious changes. that is mainly a political reason. they have to keep their voters happy. making those changes basically

imperils the government, especially because there are two different coalitions and each one may different promises. which one steve cut? purple -- once do you -- which ones do you cut? >> he says the u.k. is the biggest threat he is watching but will not say which banksy is shorting. -- he saysd see ipg he is a list of about 50 companies he may bet against in the event of jeremy corbyn becoming prime minister. what does that mean for the u.k. banks? there is concern about nationalization, and that is what he is pointing to. it is interesting to point out that the banks that suffered most in the stress tests on friday were u.k. banks.

a no deal scenario being a factor that can play a significant role in the outlook for those institutions. >> china's exports topped estimates as companies rushed to make shipments before higher tariffs came into effect. >> the top line with the export number which came in at 15.6%. front loading playing a big role. the president set tariffs on $200 billion worth of goods. they expect 25% on january 1. there is also the weaker yuan. in terms of the import numbers, a beat as well. they have been policies announced by chinese officials around boosting infrastructure. that may have played a role. most economists think the picture will look different in 2019, especially with tariffs

increasing to 25% on january 1. >> tesla appointed robin denholm to replace elon musk. he will remain tesla's chief executive officer. what we know about the chairman? >> she has been a cfo of a big australian telco. tesla'sshe has been economic director for a few years. she is not an operations person. she is an accountant by trade. someone with deep experience on the operational side of the car industry. that has not come to fruition. there is possibly some disappointment on that level. >> take changes for the top of citigroup. the board named john dugan as its new chairman, keeping is separate from the current ceo.

talk to us about what that means in terms of oversight for citi. >> don't miss the forest for the trees. you can always have a more optimal situation. there is always someone who is more of an investor or was involved in regulation. citigroup make a decision to keep the ceo position separate from the chairman position. citigroup shareholders, including myself, still have a nexus set of eyes looking over their welfare and what is in their best interest. this is a good move to keep the position separate. electric is agreeing to sell its commercial lighting division. they are streamlining the industrial portfolio here. it does not commit much in terms of overall revenue for ge, but it's an important signpost. >> i think it is. technology has been a divestiture mode for some time. this lighting business was one

they said they were not going to sell. their consumer bible business has been on the block for quite a while and i have not find a buyer. they said they wanted to keep the commercial parts they are showing today because it has more of a digital aspect to it. this is about rethinking traffic lights and streetlights and the way we do traffic management. they sell lighting and software --musicalit municipalities and states. they are holding back on spending and research and development. this was not a business that made a lot of sense for them to keep. >> the u.s. marijuana market just got greener. michigan became the 10th state to legalize recreational pot, and missouri and utah are allowing medical marijuana. stocks are getting a further boost with the resignation of jeff sessions.

was it all expected? it seems to be quite a big reaction. >> it is a big deal. michigan is the 10th largest state in the west and the first midwest. expect to see a cluster affect. michigan starts selling, generating tax revenue. here comes illinois, here comes ohio. former goldman sachs boss lloyd blankfein personally helped forge ties with malaysia. years before, several billion dollars in missing and one was identified-- an executive. eight 2009 meeting -- why is this important? >> it shows that goldman's defense, they will be in negotiations with the justice

department. their defense will be tim leistner, who pleaded guilty, the life to us. we had no idea -- he lied to us. we had no idea the money would be stolen implanted by the prime minister and his cronies. it was athere ceo, very detail oriented guy, it is more embarrassing as a legal problem. it looks bad in the rearview mirror now that we know it happened. ♪

ramy: welcome back to "bloomberg best." i am ramy inocencio. be another role blue -- the inaugural bloomberg for him took place in singapore this week. they gathered to dress the world's most important issues

and its biggest challenges. all that and a time of economic and political transitions. on the second day, the u.s. midterms made for another great example of just such a shift. erik schatzker sat down for an exclusive conversation with carlyle group co-founder and cochairman david rubenstein. longtime washington insider -- he asked the longtime washington insider with the new balance of power may mean. >> hopefully we will bring together the democrats and republicans. i started a program to interview great historians once a month. we get democrats and republicans sitting with each other. it is a small way to make a difference but hopefully they will learn to work together better. >> there is the effort of yours, the problem solvers caucus. are they making a difference? >> a small difference but it takes a while. we have an atmosphere in washington that is not very good and you can't change that

overnight. >> is is the worst atmosphere you have seen? >> yes, for as long as i have been here. when it worked in the senate in the 1970's, they worked together and socialized and got legislation done. i don't think it will change overnight. >> is congressional deadlock that for business? >> i don't know if it is bad for business. the economy is doing very well. the economy is doing well. on the other hand everybody wants things to work together better than they are now. people surely want them to work better. the californias, democrat who stance the chair the house services committee said if the democrats win control of the house and that is she saidb she gets she will do to the banks with baited the us. i don't mean you listen david rubenstein. what do you think she means by that? >> i have not talked to her.

a lot of people say things in campaigns and then when you have to legislate it is different. let's wait to see how the election turns out and when congress has to legislate. >> do you expect democrats to be hostile to the financial services industry? >> i would not say so. sometimes democrats have done things that are helpful to the industry. the industry employs many people so i don't think it is automatic you will get legislation that will hurt the industry. >> coming up on "bloomberg best ," more political reaction from the new economy forum. gary cohn and larry fink weigh in on the midterm vote. >> it looks to me that the economic issue did play into the election. ramy: global trade states a hot topic. the u.k. trade secretary was at china's import expo and says the

outlook is bright despite brexit. >> we have countries lining up to talk to the u.k. ramy: this is bloomberg. ♪

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ramy: this is "bloomberg best." let's revisit global reaction to the u.s. midterms. control of the house salon back to the democratic party. a number -- swung back to the democratic party. erik schatzker begin his exclusive interview with goldman byhs ceo david solomon asking what he thought of the results. >> from a market perspective and then expectations perspective, even in historical context, it is not too unexpected. i am not a big believer this will have a big impact on policy

or action or washington or where we are for the next two years. erik: what if the democrats begin never-ending series of investigations with subpoena after subpoena and two things that trump administration and perhaps the trump family and even the republican party have been doing for the past couple of years that would probably sort of the business of government? it makes you wonder if it would be bad for the economy and the business climate. is balanceould say can be good in government. when there is balance both sides have to work harder to get things done. what i would say is i don't think it would be an effective strategy for the democrats to go down that road. but if they do go down that road, i think that would be a missed opportunity. i would hope the path of the

process forward from here is one where given balance and share responsibility for the next two wherethere is a focus on we can find compromise that will move us forward. what do youer boss, think he will say about this? >> which one? donaldn start with trump. >> i think donald will take full credit for the pickup of seats in the senate. looks like the senate could go 52, 53, 54, to mainstream democrats incumbents losing at a minimum. i think donald will point out the campaign -- he campaigned in those states hard. it is a complete ratification of his policies, and his policies

are working. >> would you advise him to say that? say -- my personal opinion is you have got an election they give you dual results. you have a senate going one direction. you have a house going to different direction. the makeup of the house right now is getting more and more interesting. much more diverse. many, many more women. women voters came out and voted and they voted for women, which is a very good thing. the suburban population came out and voted. i think you have got a little bit more of a mixed message in there, but it does look to me in some respects that the economic issue did play into the election and the fact the u.s. economy is strong did play into the election. >> larry, the markets open tomorrow morning. what will be the effect?

markets up or down? >> do you need a coin? i don't think the outcome is a big surprise. the markets had a pretty big setback. the market is reassessing itself. i think we will be part of the re-stabilizing process. i think the big narrative will be women. women voted for women. we have a much more diverse house. just woment is not voting, it is millennials voting. i believe that will shape the elections in the tw next two ye. >> whether the elections me for markets? >> i think the markets will react as back to fundamentals. it is not that surprising for the incumbent government to suffer setbacks in midterm elections. when you look at the history of

presidential terms, there are one or two major reforms per term. now we will see markets go back to fundamentals and where the economy is going. there may no longer be a leg of fiscal stimulus, but that is not necessarily needed given where the economy is performing, for the labor market is, where inflation is -- where the labor market is, for inflation is. markets will react were fundamentals that all that noise in the next few months. >> you talk to the president. we talked to him on election night. how serious is he about reaching out to democrats? >> i think he is amazingly serious. one thing we learned about this president is he is practical and dealmaker, and he puts aside the traditional republican

philosophy for the sake of practicality. i think it's an interesting time. the country is in dissension. it is a debate. that is not a good thing in one sense, the participation has never been higher. you look at this election, voter participation has never been higher. women and minorities have never been better. the dialogue is never been higher. when you look, the democrats are smart. andng on this president, for sure there will be investigations in rhetoric, but he is pretty good at that game. if they play the game going into 2020 and things stall out, it is not good for them. fighting full-scale for the house investigations and infrastructure? >> absolutely, because he turns on a dime. i don't think he will see this long tale of him continuing to

say i will fight. he will get things done. attention focuses even more sharply on brexit negotiations between the u.k. anti-e.u. and what may happen to trade in the wake of their divorce. stephen engle caught up with u.k. international trade secretary liam fox and got to ask direct questions on the subject. >> have you spoken with the chinese government officials about their opposition to the uk's plan to have its own wto tariff quote? >> if anything the chinese government officials regard brexit as an opportunity. they see the u.k. will be a will to set its own trade policy for the first time in 40 years. the further you get away from the epicenter of brussels, the

more people can see opportunities it brings. our tariffss -- on we want to replicate eu tariffs as much as possible. schedule, wehe have a methodology in line for that. as an article 28 discussion. >> that could delay the process considerably. >> not really. we will be able to trade on schedules. the europeans are throwing up their hands in horror at my own party, but we are trading on uncertified schedules as an eu member. we did not trade on schedule in 2004 and 2016. , they time he got to e25

were trading on schedules that were decades-old. >> how important is that to you? >> is important for the future of the united kingdom. not hereountries lining up to talk to the u.k. who see the benefits of having free access to the sixth biggest economy in the world. they look at financial services in particular and want to ensure the you carry is going to be able to deliver for their economies as well as our own. that is where the advantages will come. some of the countries here have a complaining we didn't get high-level visits from the chinese government yesterday. we have the chinese president, the deputy premier, the trade minister all visiting at different times during the day. i think that is indicative of the challenge from other countries. ♪

ramy: this is "bloomberg best." let's get back to our roundup of the top business stories with habits from another flood of earnings reports, starting with results from disney. ♪ strong.y came in the ceo is betting on it future build on streaming. that are notassets only doing well today that we believe can do incredibly well in the combined entity. particularly as a move in the direction of direct consumer businesses where intellectual property will become critical and brands will become critical. as well as the talent that is required to make the kind of product or see the product we will need is made all very

important. there is substantial justification for the price when it comes to strategy, when it comes to revenue growth and when it comes to bottom-line growth. there are opportunities for cost savings. we said when we make the deal because of the overlap in some businesses, but this is largely driven by the combined entity having the ability to operate more successfully going forward. when you think about the transformation going on in the media landscape, having these assets, this kind of scale, the brands and people is vital to the success of this company and the ability to grow long-term. >> big day for european bank earnings. italy reported a third-quarter profit that missed estimates. ended five consecutive quarters of contraction. the equities trading business was up 19% in revenue. >> they could not be more

different. what exactly happened at unicred it? >> the tail end of a turnaround. that has all happened now. now they are looking for sustained growth. unfortunately there seems to be a little bit of a slowdown in that expected expansion. you have turkey weighing on unicredit. it was right across the board. that is evidence they are much further down the road in terms of focusing on the core businesses and developing does the levels of profitability. it is being slowed by costs and competition. germany's number two lender blames low interest rates. commerzbank is bending on marketing to acquire new customers. >> the third quarter and the first nine months of this year

are clear proof of the strategy, growing with customers and volumes is the right thing to do. it is somewhat still difficult and competitive. what i expect owing forward is i expect the competitive environment will stay and we have to deal with low interest rates for a while. left itsense we basically unchanged. you will see something dull and boring. >> it says it is on track to meet its targets after a strong third-quarter. the bank's corporate and financing operations helped boost earnings for the second straight quarter. give us a bit more details on why you decided not to buy back shares at this time. >> we are committed as far as the payout is concerned to a 50% cash payout evidence --

dividend. we think it is a fair renumeration for our shareholders and we think we need to keep the remaining part of our earnings either to fuel the organic goals of our business clients, and we are in areas where there is growth in credit demand. financeel and acquisitions as we did in the last two years, or maybe to face potential regulatory headwinds that may occur from time to time. this is the reason why we think the breakdown between 50% dividend and 50% retail earnings is -- retained earnings is fair. founder is saying the benefit -- seeing the benefits.

he is facing tough questions about his relationship with saudi arabia, the biggest investor in his $100 billion vision fund. >> we heard him talk about vision two or vision three funds. the first fund, the saudi's have $45 billion. .hey are a huge banker investor in terms of how investors react, what we see from the u.s. about the scandal in saudi could be critical to if the saudi's can come in and invest these -- investees will be happy with that kind of backing. >> the japanese bank will not be cutting ties to saudi arabia. it is doubling down in the kingdom. softbank is developing a 1.2 ilion dollar solar plant that will generate 1.8 gigawatts of power a year. >> about a year ago all the

saudi elite members were detained in the hotel in riyadh. a few days after that we learned softbank plant to invest $25 billion in saudi arabia. in the wake of very negative news about saudi arabia to announce these partnerships. that appears to be what he is doing again now. increased the profitability forecast for the year. they rely on sales in north america, china, and online. the german company's stock climbed 23% this year. you are guiding higher on net profit but the revenue guide not so. how positive is the message you want to get across? >> if you look upon where we are coming out in the first nine months, we continue exceptionally strong growth in china and north america and

online. the key profit driver for us was china come online and north america continues to be strong. europe is sluggish with an economy impacted by brexit. rise it is probably the most unwise business decision for decades. for adidas it is a very strong quarter in 2018. they put a positive spin on next year's outlook after gains in its industrial software business made it for a lot for the struggling power and gas operation. they say they plan to buy back 3 billion euros of shares. >> it is actually a positive because that will show the market and us we have been able to achieve an agreement with the representatives in how we do

restructuring and this is what we are executing on. if we take away the 300 million tariffs charge, is about 5%, which is very hard to find in the industry like that. obviously it will be a constant struggle. also 2019 since there is quite a set of overcapacities. we have a very robust and well-established service business that should help us through the worst in the new business environment. $73.2 million. that is what rasco resources has delivered. 628 ounces. that is the key thing. they will be acquired. bubble the new benchmark be when we talk on this company gets

together with barrett? how you deliver value in this marriage? >> it is all about quality. quality assets, quality management, quality financials. if you want to be in mining, a good place to start is with a world-class, high-quality asset. you can survive the cyclicality of the industry and in particular the gold industry. >> shares moving higher. sales are growing. 6.7% up in terms of comparable sales. what about the future cvs? >> that is the big deal everyone is thinking about right now. family going through this lengthy antitrust process. they have to go through 28 states. they are almost done.

they said this thing will close by thanksgiving. we are a couple of weeks away from what is one of the more transformative deals and health care out there, merging this big corner pharmacy and pharmacy benefit manager with a massive health insurer. ♪

anna and myself. this is the question. what will markets make on the midterm elections? ramy: there are about 30,000 functions on the bloomberg.

we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites too. delete get a quick takes -- will take you to quick takes. ♪ they can litter sidewalks, minister history and's and in s' lives.der they invite aware republic to hop a ride as indignant local governments scramble to regulate them. it may be a surprise that e-sco oters are exactly what cities need. find ad an app, scooter, unlock it and go for a ride. when you are done, leave it behind. rides can cost as low as two

dollars. ft have uber and ly scooters. they are all over the place. if you are not using them, they get in your way. because people are just learning how to use them they tend to ride them in obnoxious ways. >> at launch cities like em, sannd banned th francisco created a permit system to cap the number of skaters allowed. bird and lyme offer scooters in more than 40 cities. they do have their defenders. and then serving areas cars are often not the best way to get around. shareave turned to bike systems and dedicated bike lanes because they take up less space than cars and save on carbon emissions. some urban planners see e scooters as the future of urban trust rotation. >> the hope is you would

eliminate a lot of shorter car trips and get cars off the road and create more protected lanes. that would in turn brought the demand for scooters. it's a virtuous cycle. >> despite them being valued at more than $1 billion, it is too early to tell of it will become viable businesses. it takesok at how long off to pay a vehicle and how long the vehicle stays on the road. we don't exactly how much this is but it does seem like you can pay these things off really quickly. they are relatively inexpensive but they also get completely trashed very quickly. you'll take care of your own bike or car, but no one ever washes a rental car. ♪ ramy: that was just one of the many quick takes you can find of the bloomberg. you can find them at bloomberg.com, along with latest business news and analysis 24 hours a day. that is all from "bloomberg best ."

thank you for watching. i am ramy inocencio. this is bloomberg. ♪

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♪ carol: welcome to "bloomberg businessweek." i am carol massar. jason: i am jason kelly. we're here in new york. carol: "bloomberg businessweek" has released its 30th annual ranking of the best schools in the united states. the winner, you will have to stick around for that. jason: the search for serious returns in the decade since the financial crisis is setting up