♪ kailey: coming up on "bloomberg best," the stories that shaped the week in business around the world. theresa may fights for her political rights. >> this is a decisive day which enables us to move on. >> we do have effectively a tory civil war in the open. >> it is hard to see how she will get her deals were probably meant the numbers just aren't there. kailey: a slew of companies released earnings and analyst deals. alibaba's singles' day sets a new sales record. crude's plunge has everyone talking about oil. >> the market looked firm in 2019. iswhat you are also seeing

kind of capitulation on the part of financial investors. >> if we need to cut production to keep the market balanced, we will do it. kailey: trade is hot in this week's interviews. >> the fundamentals seem to be fine, but sentiment is getting to a danger zone. >> we want to make sure if the world sneezes, new zealand doesn't catch a cold. kailey: it is all straight ahead on "bloomberg best." ♪ kailey: hello and welcome, i'm kailey leinz, this is "bloomberg best," your weekly review of the most important news and analysis from bloomberg television and around the world. let's start with the top headlines.

on monday, signals from saudi arabia gave investors hope that oil would snap its losing streak. francine oil is higher this : morning as saudi arabia said it would reduce crude sales in december. speculation has risen that opec and its allies will cut output next year. >> saudi arabia is back in the swing factor, ready to reduce probably by 500,000. that leaves at least to be redistributed amongst the rest. >> yes, it stops the rout and the bear market. clearly we are still in a bear market. but it is not exactly the bump they were hoping for. really what we were hoping for, they have one month until the meeting in vienna, one month to grab control and convince the market that they are serious. >> when president trump tweeted "hopefully, saudi arabia and opec will not be cutting oil production, prices should be much lower based on supply." it seems that the market is listening to trump. should it?

>> i think the market is overreacting to all kinds of things. i would not expect that the would have a material effect on the price. uptech clearly the laggard, 2.8. what did you take from the latest move? >> pretty astonishing today. you saw the financials, some of the materials companies, taking a hit. you wonder are their fundamental , factors why some of these companies are selling off? like technology and financials, or is there is indiscriminate selling that we saw back in early october? >> the overwhelming big story, the trade issue. soaring from pessimism to optimism. kevin yes, they are talking : again. steve mnuchin and the chinese vice mayor, reportedly began their ongoing discussions, via telephone yesterday.

i can tell you hear that in washington, d.c. the sources are , saying that the administration would like to continue their conversation with china, but there are willing to pull out provided that things don't go their way, particularly ahead of aires.sorry's -- buenos that said, china having an optimistic tone. >> we are setting up for an important meeting in buenos aires, but this is still a white house that is divided on where to go in china. it is still not clear that china is ready to give the big structural concessions that this white house has been pushing for. francine crude oil showing : little sign of recovering from decline. oil plunged 7% yesterday, its biggest one-day drop in three years. this comes as opec warned demand for crude is falling faster than expected. and remaining saudi arabia and other members are signaling output cuts. what will stop this rout, if anything? >> i think the speed and scale of it is being driven by money coming out of this market.

at open interest, a measure of how many contracts are outstanding and features, it has been falling off a cliff, and i think it has accelerated the speed and its scale. but it is hard to see it from the point of view of opec, particularly the saudi arabia and oil minister, what do you do in a scenario where it feels like they have lost control of the narrative? but at the same time, you have the white house furiously tweeting at them every time they are going to cut production. guy the cabinet approval of the : brexit deal is a prologue to a much harder slog through parliament. >> at least two of the of the heavyweight brexiteers have decided to back may. upouple others are weighing whether they will resign or not. but as you say, the real challenge is going to be in parliament. theresa may addressed mps today. there were a lot of people saying that this is a sellout,

that this is not what the people voted for. that is handing over sovereignty, not taking sovereignty back. it is hard to see how she will get it through. >> the choices before us were difficult particularly in , relation to the northern ireland backstop. but the collective decision of cabinet was that the government should agree to their withdrawal agreement and the political declaration. this is a decisive step which enables us to move on and finalize the deal in the days ahead. >> theresa may is fighting for her political life, despite getting her cabinet's backing yesterday. there is growing revolt in her party that threatens to derail her brexit plans. >> business has more certainty now and it will be able to plan. it is effectively the deal they wanted, they best they could have hoped for. but it is a deal that will leave everyone unhappy. the general public is unhappy.

clearly, the politicians are unhappy. the labor party has come out and said they are unlikely to support the deal. it will be a tough sell for theresa may. francine: the brexit secretary has resigned, in a blow to prime minister may. he tweeted he could not in good conscience support the terms proposed for the deal with the eu. he is one of the key ministers for theresa may. how does she face this resignation? >> quite awkward, to say that you cannot in good conscience support the treaty that you just negotiated yourself. i think it leaves her in a real difficulty. we always knew that she was really up against it in parliament. the same thing seems to be exchequers where they sit in the room is say, we will go along with it, then they come out and get beaten up and the start resigning. >> we do have a tory civil war now, and the european research group, the brexiteers, effectively have been putting in

letters. they need enough letters to trigger a leadership conference for that to be a reality. >> the next few days, it is really hard to see how she will get her brexit deal through parliament. the numbers just are not there. with every minister who resigns, that is one fewer conservative that is going to vote with her. she has been counting on all these people to get the deal through parliament. >> i will do my job of getting the best deal through britain. i will do my job of getting the deal which is in the national interest. when the vote comes before the house of commons, the mps will do their job. they will have to look at that deal and consider the vote of the british people to leave the eu and our duty to deliver on that vote. and of course, they will be held to account by their constituents for the decisions they take. >> the united states and china discussions, that is the agenda for the meeting between the u.s. president and china's president, at the g20

meeting in cyprus. commerce secretary wilbur ross says achieving a deal by january is "impossible." >> what level of expectation is wilbur ross setting here? >> very low. the framework of agreement, much down from making a deal, but overall, not that bad. if they get to that point, it will be the most progress they have had in about six months. the u.s. has kind of repeated its threats of tariffs, but the chinese have not given an inch on the bigger u.s. demands. kevin secretary ross doubling : down, he has emerged as someone who is now at the forefront of the u.s.-china talks, according to sources i talked to. the bottom line is that for the president of china to have a good scenario commerce secretary ross and peter navarro, that is where things stand heading into buenos aires. ♪ guy: theresa may is taking control of brexit talks, she is

them of the role. she is said to be speaking to local tory party leaders, she has done so on friday. >> it is a poke in the eye of the brexiteers. the person she has named as secretary is not a heavyweight, there are three or four high-profile brexiteers in the government that she could have chosen. but those figures are probably wobbling a bit and presumably, she didn't want to name them in case they decided to quit. she has gone very low profile and said, i'm going to negotiate. at the same time, she has rudd, a amber red -- very high-profile remainer, and of may.ally so the balance of power in cabinet has shifted a bit in the favor of the eu. kailey: still ahead as we review

the week on "bloomberg best," more discussion with expert insight on what can break crude fall. conversations with the president's of new zealand. and, more on the week started business headlines. politicians put pressure on goldman sachs for its role on 1mdb. >> not only do they want the fees they paid goldman back but , they want compensation for goldman running their image. >> this is bloomberg. ♪

♪ kailey: this is "bloomberg best," i am kailey leinz. let's continue our global tour of the weeks top business -- the week's top business stories in europe. and italian leaders and eu officials locked in a clash of wills over the italian budget.

vonnie: they are calling the bluff of the e.u. enforcers. now, they have to decide whether there will be fines for italy. how serious is the eu about levying fines on italy? it appears italy would be happy to accept in order to pay fines at this point. >> i don't think the eu is eager to levy fines on italy. they want to work things out, they want to have more discussions. they want to bring italy within the eu rules, or at least a lot closer to them. i think any fines would be the endpoint, not the point of reference going into all this. ♪ >> china's industrial production and business investment gain pace while interest rates were policymakers grappling with the slowest growth in a decade. are tightening their

belts with the uncertainty of the trade war. >> this was broadly positive. as you say, if there was a fly in the ointment, it was the retail sales number. that came in around 6%, and fixed asset investment also came in above the surveys from the economist. officials here think there was a tick up in private investment and infrastructure, and in the environmental sector. also saying that overall, investment in infrastructure remains at a pretty low level. in terms of the trade war impact, they said it was pretty minimal at this stage, saying that they have other tools at their disposal to support the forward, saying there is still downward pressure. kailey: japan's third-quarter gdp numbers came in worse than expected. the economy shrank by an annualized 1.2% over the previous three months. economists had expected 1% contraction. natural disasters weighed on domestic demand and slowing

growth in china pressured exports. shery: the gdp contracting, well below the boj considers as its growth potential. could this be a lift on inflation pressures or could the tight labor market offset that? >> the most positive thing we think has happened is the -- getting behind prime minister abe and saying, we will take in 500,000 new workers. is that the beginning? the first step in -- we will replace the declining population, increase the tax base? remember, japan now has 164 jobs for everyone hundred applicants. if we can start to improve that part of the equation, we get back on our inflationary track. that said, these numbers are disturbing in the short-term. francine: goldman sachs' reputation could be facing its biggest crises of the decade, as the malaysian probe into 1mdb gathers pace. the nation is stepping up

pressure against the investment banking giant, calling for more aggressive claims against the bank. to bring us up-to-date on the investigation, what does malaysia actually want? >> ibrahim who is widely expected to become the next prime minister says that they want more claims. not only did he want the fees they paid goldman sachs, they want compensation for the ruining of malaysia's image. he is saying that when goldman sachs the 1mdb bonds, they were sold at higher interest rates than they would have paid otherwise. he also wants compensation from other consequential losses, which he does not elaborate on. all these things are really raising the pressure on goldman. >> softbank has announced

details of the ipo of its mobile cash cow unit. it would make it japan's biggest public offering in history. highly anticipated, but time is of the essence for this deal as well. >> let's actually run through those numbers. softbank is sharing 1.6 million shares at ¥1500 apiece, about a 33% stake in their domestic telecoms business, including japan's third-largest wireless carrier, broadband network as well as fixed line services. that would net them about $21 billion. it is a little less than what we were expecting. it has been reported that the sale might be as big as ¥3 trillion. we were all preparing templates for the world's biggest ipo ever, but we will settle for japan's biggest for now. 90% of the shares will be sold domestically in japan, and our sources are telling us that in fact, most of it will be sold to retail investors, not the institutional investors.

shery: alibaba rang up almost 31 billion dollars in sales at the annual singles' day extravaganza, setting a record. all this coming after 10 years of this event. and they still pulled off another record. what were the key takeaways? >> absolutely, another record, 27% increase from the number we saw in 2017. they racked up sales of about 21.2 billion in 2017, and 30 billion last night. they say that about 500 million consumers took part in this online consumer event. they say that in terms of the big-ticket brands, the top sellers, probably not a big surprise, apple phones, xiaomi vacuums.d dyson

the top five products on sales areas the top three nations included japan, south korea and the u.s. as well, interestingly. emily amazon has officially : confirmed it is opening two new headquarters, one in long island, one in arlington, virginia. and nashville will become the so-called operations center of excellence with more than 5000 new jobs. >> we will have shareholders meetings in these headquarters, board of directors meetings, our all hands meeting employee , meetings in new york and canada d.c. area, just like we have them now in seattle. >> splitting it up a makes sense, simply because of the sheer size. it used to be that if you wanted to build a huge campus, you want to the suburbs. but today, young tech workers, tech workers in general don't want to be in the suburbs. they want to be in a dense, diversified, culturally attractive city. therefore, the employers have no choice but to try to establish themselves in these big cities.

is spoiling ale bunch of suppliers. supplier losses all following ofd fresh demands increasingly week -- apple shares plunged as well. what do you make of this momentum announcement, that one of their key areas of growth, their key clients is saying, look, we're cutting down our orders? that has got to be apple. >> one thing to keep in mind is that apple's strategy with the iphone now hinges on driving up price, not unit shipments. my thought when i saw the news was, boy, this really reflects that emphasis that they have. the iphone xs, both of them are more expensive than the x, and the xr is more expensive than the iphone 8, and it shows how apple is moving upmarket in terms of price in order to make

up for some of the volume shortfall. >> we turn to chipmakers. the sector has seen another bout of selling in asia, wiping $8.4 allion in market value, after weak forecast from nvidia added to the latest signal that demand for servers, personal computers and mobile is falling. could you sum up what we heard overnight? >> then big issue with nvidia is that too much inventory in the supply chain, a glut and they , really need to wait until that is digested, before they start shipping out more chips. they came out and basically admitted that the whole chip is on the hook and any bad news could throw the market in either direction. ♪

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kailey: you're watching "bloomberg best," i'm kailey leinz. it has been another week of mixed signals from the u.s. and china on the impact of trade talks. investors continue to assess the impact an extended trade war could have a markets and a global economy. in an exclusive interview bloomberg's rishaad salamat , talked to the jp morgan asia-pacific chairman and ceo, nicolas aguzin, on what he sees on the current trade landscape. >> actually, if you look at trade as a whole, trade is at record levels. it is not like trade has gone down. but, the danger about this is the impact that it has on expectations and sentiment. you are seeing a bit about. the fundamentals seem fine, but sentiment is getting to an -- a danger zone. rishaad: it takes time also for the actuality to hit people as well.

looking at the landscape and how it might change how do you , prepare for it and what are you looking for for the particular focus? >> it is a combination of things that we are looking at very closely, which is rates rising the u.s., which will have some impact on the emerging markets, from emerging markets. we have seen a little bit of that. combined with the geopolitical situation in iran, china and the u.s. i would not only center it on trade, i think it is a broader geopolitical issue between the u.s. and china and how it is moving around. there is some noise coming out of europe day in and day out whether it is brexit, italy , widening its spreads -- you see the combination of those three things and know you have to keep an eye on that. then you overlay that was the fact that it has been 10 years without having any significant recession in the u.s. or around the world, you start thinking, ok, i better prepare for all sorts of scenarios. rishaad: are you seeing signs of perhaps a looming global slowdown taking place?

>> we are not. if you think about 2019, it is hard to think where it will come from. it is hard to see any initial signs that there may be something brewing out there. but if i had to guess, an area that we have to watch carefully is the fact that insulation, if it keeps creeping a little bit, it may limit the tools or the policies that government can use to combat a slowdown in the economy. rishaad: so they would have enough bullets in the chamber, essentially? exactly limiting the tools , they have to fight it. kailey: coming up, earning reports from tencent, and big deals in software and oil. plus, more compelling conversations straight ahead. asia's rcep trade deal with china will not be finalized this year, but the prime minister of new zealand says it is worth taking the time to get it right.

>> from our perspective, it is always about balancing pace with quality. kailey: this is bloomberg. ♪

kailey: welcome back to "bloomberg best." i am kailey leinz. the collapse of oil prices was a central topic of discussion throughout the week on bloomberg television. let's revisit some of the conversation, starting with manus cranny's interview with bp ceo bob dudley. >> do you think we get $70? >> we are planning it at $65 long-term, but the market confirms, even though projections of global growth and demand are below the 1.5 threshold, i think global economic growth will change a little bit.

-- shoulds were firm be firm in 2019, venezuela production, and production out of the permian basin in the u.s. >> is shale the biggest threat in 2019? the trajectory of shale is really quite stupendous. is that the biggest threat to global demand? >> well, i think in the long term it will be supply and demand and opec said they would like to keep the price within a certain quarter. i think that's a fair way and good for producers and consumers. the permian has been quite something but it will respond quite quickly until things are moved around. it will be i think an increased production for several years. >> i think that what was

happening was that they were -- the suppliers were geared into a much tighter market and once the results came out on exports from iran, it is a process of readjustment and the price we saw of $86 is a geopolitical spike. obviously, prices came down in the 70's, and now they are lower. we are also seeing a capitulation on the part of financial investors. those who are long are all fleeing the market. that's what you are seeing when you look at $65 right now. >> with the growth of the united states as an oil power, where do you see oil prices ranging, especially when it comes to exports? at the moment, we have quite a bit of volatility in the price action. where do you see it? >> well, i think it's really going to depend on the growth numbers in the world.

certainly, a lot of u.s. production -- and this is now just a factor that is built in to the big u.s. change -- and the impacts are as global as the new study we put out today, trading places, which is having an impact on everything, including u.s. trade balance. the u.s. trade balance and merchandise trade would have been another $250 million more in deficit had it not been for this growth we are seeing in u.s. oil exports. this is a profound thing. i think the global market having to adjust to the fact we now have the big three, it is russia, saudi arabia, and the u.s. is on track to be the biggest oil producer in the world. that's a big change in the market. >> we have had cuts in the past, and to reach the market balance, and we need to cut production to keep the market balance.

we will do. but we will not overdo it. we are always going to keep that balance, and i reference will be the five-year average, where we worked very hard for a year-and-a-half with market members to achieve. to theink if it comes question, are we going to act? i think we will in the early meeting, and i'm expecting that they will go to a responsible producer and will reach consensus and take measures to keep the market in balance. >> so minister, december is still a way off, but your best guess as to how much needs to be cut in december? >> there are things outside our control, which are speculations in the market. the market fundamentals are still reasonable. my expectation is that

adjustment and the growth will reach consensus to adjust the market. >> opec lowering its demand next year for the fourth straight month. where does demand plan to sell off? >> i think it played a bigger role than people give it credit -- gave it credit for. the thing i have been focusing on is gasoline demand, particularly in the u.s. what we have seen for the past couple years is that gasoline demand had revival, as you would expect, because prices came down the economy was going strong. what we are seeing this year is that with prices back up $150 a gallon -- $1.50 a gallon, demand has flattened out, negative in quite a lot of the country apart from places like texas, and i think you are starting to see that worldwide. the iea report showed that gasoline demand worldwide is barely growing, which is kind of striking when you consider that the prices are not back to the levels we had.

>> when you have oil drop as much as it does, what does it do to producers here in the u.s.? and the big oil companies? how much does it dissent devise -- de-incentivize production? >> well it's going to defensive some, but what we created back in the was a futures market and 1980's many of these companies are hedged, they are protected and can keep going for another year or so with prices around 50. especially since costs have come down. i think we will see productions but i don't think we will see rapid reductions at all. kailey: this week, bloomberg television spoke with a pair of prime minister's, australia's scott morrison and new zealand's december ardor. we asked about the politically sensitive decision to block a foreign bid for an australian gas pipeline. >> i want to get your view on where the lay of the land is when it comes to the chinese

company, there have been a couple of high profile knock backs. we have had attempts in building out the five g network, is it getting to a point where if you are a chinese connected company , you will not have a good chance of getting approval in australia? >> not at all. you have highlighted some exceptions, but the normal state of affairs is that there are many approvals, dozens of times over. rpi, thatn to decision was aggregated to the concentration and liquidation of the owner, it wasn't about the nationality. australia will always make decisions about foreign investment in our national interest, but we will always be the most liberalized in foreign regime in this part of the world. you can invest in australia more than australia can invest in the rest of the region. i wouldn't describe the

arrangement as reciprocal but we have a very open, liberal arrangement. we have clear rules, and i think whether it is on the most recent decision you referred to are the others you made reference of, we went through a very disciplined crisis of deciding the decisions, and they were no surprises in those decisions, and i think it's an important mark of how we continue to engage with china. we have our rules, we explain our rules, and we welcome investment in accordance with our rules, and it's no less than what china would expect or what singapore would expect or indonesia or malaysia or any other part of the region. no question that australia's foreign investment arrangements are the most liberal. >> you talked about this earlier, it has been stalled. countries like china and singapore wanted to push it through by the end of the year

but that is not likely to be until the end of next year. what caused the stall? >> we are looking into 2019 and we have roughly seven chapters that are looking good. but i think there is bit more conversation to be had around it. it is about balancing pace with quality. and we do want to see these derived, soenefits bankll keep pushing to what has been negotiated, and see if we can push a little further. but it is a significant agreements, and i think we will demonstrate that it can be derived in this region from the multilateral agreements. >> is there concern that it is being driven by china? >> no, that's not a concern from our perspective. our concern is making sure that we don't sacrifice quality for pace, particularly given the lengthy gestation. we mostly derive the most of it that we can. >> prime minister, what are your

views on the u.s.-china trade? is it getting better or worse? what are the indications you are getting in your conversations with the rest of the global leaders? >> at least from a domestic perspective, i think it is having an effect in the sense that business confidence might be somewhat affected by seeing what's happening as a result of the trade conversations going on, that it might be having an impact on global growth. from our perspective, we want to make sure that if the world sneezes, new zealand doesn't catch a cold. but there's also something to be said for the architecture. we see no benefit for trade wars, so we will keep pushing hard around really abiding by the trade rules and agreements and norms that we signed up to. ♪

kailey: this is "bloomberg best." i'm kailey leinz. let's resume our roundup of the week's top business stories with a focus on company news. chinese internet giant tencent was among the companies releasing quarterly earnings reports. ♪ >> tencent beat third-quarter earnings expectations, largely thanks to a one-time gain from its investors, but the clampdown slowed revenue growth. time, buttially buys there is no suggestion that they have any kind of longer-term answer to a pretty big existential crisis coming from chinese regulators. >> that's right. we have seen early analyst reactions and i think most people are a bit disappointed that tencent could not offer

more visibility with what is happening with this stalled chinese game approval process. that is right now one of the biggest overhangs in the stock. i think it was a legitimate heat -- beat on the bottom line for the third quarter, but if this game approval process isn't clarified quickly, it may be short-lived. >> walmart planned to sail smoothly into the holiday season, but instead found choppy waters today. the world's largest retailer is falling despite posting strong third-quarter sales, a signal it can hold its own against amazon. >> expectations are really high for walmart. they are one of those retailers that has been doing quite well, along with home depot, macy's. but that means their stock has been trading around 22 times earnings compared to 17 times historically. it's an expensive stock. people are looking for things to poke holes in it, and gross

margins were down a little today, and overall it was a solid report but shares are down in six months today. >> revenue is improving across the business, prompting the world's largest container shipping company to raise the lower end of its forecast for profit. how is it that you are able to raise your profit forecast and revenue is improving in a world increasingly beset by trade restrictions? >> well, we have seen a quarter weights have gone up more than 5%, so that's a positive driver. but we are also seeing good margin progression in our businesses, particularly in logistics and port business, so right now, container market, the global trade is growing at a

reasonable pace and container freight rates are going up. >> the world's oldest pharmaceutical business has raised its sales outlook for the year and reported a profit that beat analyst estimates, even as it warned exchange rates continue to weigh on profits. how exposed to you are forex troubles in the fourth quarter? could this be what's rattling investors today? >> we have seen by a large from the second half of 2018 relief in the foreign exchange situation in a way that important currencies have improved compared to the euro, compared to what we have seen in the first half. we had pretty strong headwinds. on the other hand, we have some trouble with the depreciation of the american currencies, especially the brazilian real and argentinian peso, which hit

our bottom line pretty hard. still in the third quarter, we expect this affect to continue until the end. that is one of the reasons that led to the fact that despite the fact we had a very strong topline that led to a raise in sales, we kept the organic pre-guidance staple for the year. bayer has reported higher-than-expected earnings in the third quarter. how the german conglomerate is performing after its $63 billion takeover of monsanto. the full impact of the acquisition is difficult to gauge but there science division has had double sales compared to a year ago. >> we are very happy to finally start integration, a good second and third quarter of the company overall. we have confirmed guidance, and in terms of legal challenges we are very comfortable that in the end, the science will prevail.

we are quite optimistic going forward for the business, overall, and also for the litigation at hand. >> marijuana stocks are all the rage this week, with all the earnings coming out. >> we just got the numbers, significant increase in revenue, a pattern we are starting to see growing quickly, -- revenue and production numbers are growing quickly, this is the corridor -- quarter leading into legalization which ended september 30. it doesn't include the numbers post legalization but a lot of these companies were beginning to ship to the provinces and some of that is reflected. how your revenue, higher production, and what we are also seeing is lower average selling prices and lower margins of costs are growing. >> it's a very new industry that's evolving. re-think each quarter we start to get more and more information and it easier for investors to

model, but right now there are so many developments, understanding the total addressable market, and what products will be sold in those markets when they come online. it's really something we are learning. each quarter we will continue to see it started moving towards where it is a little less volatile. announced yesterday it is buying another company for $8 billion in its largest ever deal, valuing it at 20 times revenue. how transformative is this transaction? does this change your company fundamentally? >> this is the jewel in the crown of sap. it does change it fundamentally. if you can marry operational data with experience data, you have the holy grail of enterprise application software. this is a bold move, it's all about growth, it is all about the unique synergy of x data and

o data, experience and operational data, coming together on one platform to fundamentally change the world. >> after a month-long sometimes contentious campaign to force a sale, athena has given in. a private equity firm will acquire the company for $135 per share, totaling $5.7 billion. how did this come about? >> it has taken a while to play out. obviously a fairly robust sales process. for the shareholders, $1.35, they will be relieved because they got the deal done. i think it's a slightly lower price that could have been achieved earlier in the process, but they are going to participate and you will see them as a good fit. this is what we could call a quasi-strategic private company. they have some good synergies with interest in the business. produceralian energy

has won the right to develop major private oil fields in abu dhabi in a deal that could be worth $20 billion over 40 years. >> this is a big one. that is the first big deal we will put in production, and it is a huge deal, it is supposed produce at the top plateau. and 150,000 barrels per day. it is a huge deal. >> when will we get to those production levels? give me a time scale. >> timescale, i'd say we can talk about 2022, 2023, something like that. ♪

>> >> when i look at bayer versus novartis, glaxo, the dax, it's a disappointing picture. investors over the last five years are losing money with and it seems all down to the monsanto acquisition, because it has just come off gains in the past six months. kailey: 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. here's another function you will find useful.

, where it will lead you to our quick takes, where you can get important context and fast insight into timely topics. here is a quick take from this week. >> decades in the making, quantum computing is the technology that can make today's fastest supercomputer look like an abacus. teams around the world are racing to build machines with different approaches, while the technology is moving quickly to technology and it is still too soon to tell when it will get there. this is your bloomberg quick take on quantum computing. the computer you are using now processes information in bits that can represent two possible states -- one or zero. quantum computers use quantum bits, which can represent one or zero or both at the same time. this is called superposition. they can also exhibit what's called entanglement, a state in which a change to one changes the state of another. these two properties let quantum computers consider multiple possibilities at once, while a normal computer plugs away at one possible answer at a time. >> so if we actually figure out how to do these kinds of

calculations, we can suddenly solve absolutely complex and unfathomably long calculations with a quantum computer that would take a traditional computer, no matter how good or fast it is, thousands of years. >> there's a lot of hype around quantum computers, and researchers continue to make incremental advances. evangelists promised machines that can break the most impenetrable coded messages more accurately predict weather patterns, and instantly diagnose and treat disease based on a specific body. but there's a ways to go. >> it is difficult to make these physical computers, the hardware. a lot of this research is in material science, figuring out what's the best hardware to use. there's a few different options. when you talk about quantum computer, you do not just talk about the traditional chips that we see in normal computers. >> many use loops of semiconducting wire, or even combinations of both for stranger approaches, like twisting subatomic particles into a braid.

many can only exist under temperatures colder than deep space. a canadian company became the first to sell quantum computers in 2011, although their usefulness is limited to certain types of math problems. ibm, google, intel, and others have all built up working on quantum computers. microsoft is investing heavily, while china is throwing hundreds of millions into the technology. >> anyone who knows the promise of the technology cannot help but get excited about it, even if it is many years away, and even if it never works out the way theoretically it could. this is still something people think is worth spending a lot of money on. kailey: 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 am kailey leinz.

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>> welcome to bloomberg businessweek. i am carol massar. >> i am jason kelly. carol: we have a special takeover issue called the year ahead, at 360 degree view look facing the business leaders in the coming year.it is all ahead of the bloomberg yearly summit in new york city. we will be there. jason