tv Bloomberg Best Bloomberg May 22, 2016 5:00pm-6:01pm EDT
>> the stories that shaped the week in business around the world. warren buffett gives the toe inditex. george soros goes for gold. the farmer deal machine keeps humming. the fed minutes saying get ready for a rate hike. >> the keyword is june. >> the earnings report. >> clearly, walmart wins. >> then, the ceo said second quarter won't be great. >> oil prices rally, that is a slope really behind us? >> i am shocked this market is
an substantially higher. >> and how did a big-time investment for its feel about the world economy? >> it's not the same positive activity we saw last year. >> we are going to proceed with caution. >> we have to be worried about it. >> it's all straight ahead on "bloomberg best." hello and welcome, i'm shery ahn. this is your weekly review of the most important business news analysis and interviews from bloomberg television around the world. let's begin with a day by day look back of the week's top headlines. warren buffett's has never had much of a taste for tech but on monday we will learn his company has taken a billion-dollar bite of apple. warren buffett has shown the
technology companies, but that line of thinking may have gone out the window. berkshire hathaway has disclosed at stake in apple. he is also said to be backing yahoo!, including quicken loans founder. are we reading too much into this? is he changing his tune? >> that's a great question we all love the answer to what i think we need to put these things in perspective. when it comes to apple we are talking about $1 billion which for you or i would be a lot of money it is not that much. fargoave stakes and wells that are worth more than $20 billion. $1 million is relatively small and when it comes to yahoo!, we are talking about financing for the takeover.
this is something he has been doing for many years. to backtheir resources various companies bids for other companies. i looking at that more as a financing arrangement vonnie: and not necessarily a long-term bet on yahoo!. >> hedge fund managers and focus, giving the chance to grab some trading ideas and decipher some market trends. >> a big shift from some stuff that had been working for a while. the biggest draw down was in the health care space and the financials. those are the only two sectors that decreased their positions, whereas last quarter at the end of 2015, you had about seven out of 10 sectors had hedge fund managers pulled money out. this time it was pretty positive in that there was a fair amount of money more going into the stocks. on the flipside, we had utilities, as we expected to see, a lot of people adding to those stocks. consumers also did well. betty: a headline that came across this morning with george soros cutting his equity holding
by about one third i believe, and taking an enormous stake, over $260 million in gold. what do you make of that? >> that is a move i i fundamentally disagree with. so for my perspective we are seeing growth around the world but it is not being discounted properly by equity markets. fear trade is causing an acceleration and things like bonds in gold, and even consumer staples and regulated utilities. >> japan has beaten forecasts and avoided sliding back into technical recession. gdp numbers saw the economy growing 1.7% and that is a relief for the prime minister as he prepares to host the g7. >> it sends a message that japan has avoided its second recession in two years, but there is still a lot to be cautious about. i think you see business spending contracting again. if you look at consumption, week
in the quarter. a debate over a sales tax hike, that consumption certainly doesn't give any ammunition if you want to hike that tax. when you take it all together, sure, it is fine, japan looks to have escaped recession but there are plenty of soggy numbers and plenty of reason to think japan has a lot more work to do on the stimulus front. >> the keyword here is june. >> fed officials definitely tilting toward a rate move in june and they are worried the markets are not ready for that. the key line, and listen to this closely, most participants judge that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions strengthening, and making inflation progress toward the 2%
objective, it likely would be appropriate for the committee to increase the rate in june. >> is june now in play? >> i think there was an overreaction from the headlines. they made it sound like june was a possibility, but there was a really big if, if all the data cooperates, but the next sentence said there is a range of views on the committee as to whether the data will fall in line, and the next sentence went further to say there are significant doubts whether there will be enough information to even declare or sound the all clear. the headline was dramatic and as there was more interpretation of the minutes, people saw this was a job owning effort but not really pounding the table for june. >> egyptian and french officials are scouring the mediterranean seas for in egypt airplane that vanished earlier this morning with 66 people on board. what are we hearing from authorities? >> from the french and egyptian
authorities, nothing can be ruled out, meaning it could be technical, it could be terrorism, it could even be a bomb placed in paris at cdg airport before the plane took off, and the plane had three different routes between europe and north africa over the past 24 hours. mark: this plane follows a string of aviation-related incidents involving egypt. can the country withstand economically incidents like this, especially when it comes to tourism? >> exactly, tourism is a very important sector, which has not been doing so well since the revolution in 2011. this is bad news whether it is a bomb attack or mechanical failure or whatever else it
turns out to be. david: the u.s. dollar rising against the yen. for the third week, the longest stretch since august. the dollar is getting a boost against expectations the fed will be raising rates in june. have your views changed this week about where the dollar will go as we have seen these fed minutes? >> generally we have been looking for dollar strength. it took a pause on the back of the fed backing on the tightening sense, and now that they are putting tightening back on the table you see the dollar start to price that back in. david: so you expect it to strengthen? ray: i do. i do not think we will see the magnitude of the moves we have seen. it will be a more gradual move up. >> what do you think is the red flashing light to the fed it has gone too far? ray: i think the fed has added a third mandate. it has unemployment, inflation,
but i also think it is looking at global stability and the currency. that relates back to china and the chinese r&b. the strength or potential for devaluation in the chinese currency, and if the dollar gets too strong because of the peg, that creates increased problems for them so i think they are balancing all of that. >> how can the fed manage that over the coming months? ray: i think it is a very difficult balancing act they have in store. they tried to get this rhetoric going one way and they try to walk it back. it keeps the market guessing, keeps them on their toes. shery: still to come on "bloomberg best," highlights from the week plus earning reports and long-range forecasts on the price of oil. we also found how much u.s. debt is held by saudi arabia. that number, coming up next. ♪
shery: this is "bloomberg best." i am shery ahn. let's continue our global tour of the week's top business stories, starting with intriguing stories in trading activity in m&a. betty: pfizer agreed to buy and acquire $45.2 billion in their first deal since walking away from the $160 billion takeover of allergan. is this what is to come from pfizer? >> exactly. we will see a lot of that this year. they said they are going to decide by the end of the year whether to split the company up, and this fits the bill. they want assets that are fully developed, they do not want to buy too early on, and assets,
especially these smaller ones, there is not nearly as much competition as there is in say oncology, so this is a perfect fit for them. i would not be surprised at there are a number of deals like this throughout the year. mark: making an unsolicited takeover of monsanto. it would make them the largest supplier of farm chemicals. news of a potential takeover was first reported by bloomberg news a week ago. is this out of desperation, defensiveness? what is the rationale? >> we have seen shifting spaces in the agro can. we saw the chinese by them, then we saw du pont merge, so the remaining players or stuck there asking, what do we do? it looks a good have gone from the hunter to the hunted. betty: why do they need this so badly? >> they are seeing all the rivals merging and the business
is getting extremely difficult. they see this as a unique opportunity to combine the strength of bayer with the seed business. there's not a lot of overlap, they fit quite nicely, and this would make them one of two or three major players for the next hundred years in that space, which could generate a lot of profit. betty: charter communications closing $55 billion purchase of time warner cable a year after it first announced the deal, we are joined by charter communications chairman and ceo tom rutledge. you are going to i believe quadruple your subscriber base, based on this acquisition of time warner cable, however you are also acquiring one of the most hated brands in the cable industry world. how are you going to improve that? tom: we are going to change the brand to charter spectrum as our service.
betty: that may help. tom: changing the name is not the solution. you have got to run a good service operation, and we do at charter and we are getting better every day. we have invested an enormous amount of money and will continue to invest in improving the whole service experience through better call centers, create self-service functions online for customers, train our technicians, give them tools and test equipment that work, and do the job right the first time. all of that takes a little time for us to implement but we know how to do it, and we will do that and simultaneously change our brand approach. >> as a matter of policy, the u.s. treasury department is never disclose the holdings of saudi arabia but the question has come to the forefront after plunging oil prices and costly wars in the middle east. what did we get from treasury? >> we got a breakdown of all the
opec holdings of u.s. treasuries and they know that under that category, it is around $300 billion. today, of that 300 billion, $120 billion belongs to saudi arabia and that number went up slightly during the oil crisis. >> does it answer more questions or raise more questions? i was surprised. china has one point 2 trillion, japan has 1.1 trillion. >> this is good news for the gloom and doomers who are basically saying the saudis are selling everything. it is not inconsistent with the notion that when the oil was falling, the saudi's were divesting some of the global equity and putting the proceeds into bonds, that is one thing. the question that it raises is, the treasuries that are owned by saudi that are not identified by saudi, those held under the
names of the hedge funds off-shore located. i think this is a good start of the story but i would like to know how much saudi arabia has started to sell in u.s. and non-us stocks. >> sources are telling bloomberg that china's uber rival -- maybe considering the new york ipl as soon as next year. we have by tech reporter, who broke the story, this is a blockbuster. >> it comes right on the heels of them raising more than a billion dollars from apple, bringing the total amount of this fundraising from $3 trillion and valuation about $23 million. >> what does this mean? >> if you look at uber, who said they want to hold off the ipo as long as possible, it means they will race to the u.s. for the ipo, so they are avoiding targeting the same pool of investors at the same time, so this does put a lot of pressure on uber as a company in china and globally. >> clawing back some of the losses we saw in the share price wednesday.
the car company did apologize. saying they used wind tunnel to measure consumption because they are worried about real wind. how serious is this for suzuki? >> they really put a scare in everybody. it looked a little bit like suzuki was going to be the next mitsubishi motors and there are some parallels, but certainly suzuki's disclosure as much less troubling. you have the admission they have been doing testing wrong. they have used some testing in a wind tunnel in the lab but when they did go back and test these models properly, they say that the results within a reasonable amount of deviation, so you are not going to see the company restate their ratings.
at this point it looks like japan's transport ministry is signing off on that. they are not necessarily going so far to say that suzuki is off the hook. they will have to report some information by the end of the month, but it looks a heck of a lot serious man what we see at -- then what we see at mitsubishi motors. betty: tim cook is setting his sights on this massive market called india. during his multi-day trip, he he will be unveiling a developing center and introducing a program for ios developers in bangalore. why is he making this trip to india now? >> it is one of the world most fastest-growing smart phone market. apple wants to get a piece of the pie. so far, they have not really been in the top 10 of the market and they need to sort of compete better with competition like samsung, which is far higher
ranked. so far, it has been challenging for apple because their products are pretty much out of the range of most buyers, but they seem to be gaining some market share. the have grown about 56% in the first quarter of this year in india. >> deutsche bank holding its investor meeting in frankfurt, the chief executive says he is unreservedly committed to the securities trading business. did he win over the doubters? matt: it seems like he made a very positive impression on not only the large shareholders but definitely from the smaller shareholders as well. the most positive thing by far that they said to shareholders today was that they will not be needing a capital raise. that has been a concern for especially the big investors. this whole time, deutsche bank
bright spot. they posted earnings that beat analyst estimates benefiting from rising home prices. i want to show you a chart that shows home depot's sales gains often move in tandem with the remodeling market. do you get the sense that home depot represents a bigger trend, or do you think they are just effective at marketing? >> i think it is little bit of both. they are effective at marketing, but they're benefiting from the remodeling trend because they sell the home improvement products. 35% of their sales comes from thpro who is doing the installation and work on those remodeling projects. lisa: can you break down the earnings and talk about what you think is interesting? >> at that it was great to see that the cost was strong get 6.5%, consensus is at 4.4%, transactions and ticket were both up, indicating people are spending more and going more frequently, which i think is a positive for home improvement and home depot in particular.
i'm not sure if that might be related to some cost in q2 but it was very strong. they raised guidance for the year based on the results. >> another busy day in the u.s. for retail earnings. lowe's and staples already out with mixed earnings so far. >> we are getting a better picture of how u.s. retail is doing. there is a lot of negativity. department stores did not do well last week. those came out today and they beat them on top and bottom line, raised their forecast for the year. they kept their sales the same. very similar to what we saw on home depot. people want to spend on their homes, apparel, not so much. staples thought they were going to merge with office depot, until last week when they blocked it, their report was mixed a little bit on the top and bottom line, but this company is trying to figure out what they can do because the idea of the merger fell apart.
>> let's take a closer look at target's earnings. they are down more than 9% in trading, the most in seven years after they beat estimates. sort of a strange thing. why are the shares down? >> they beat estimates on earnings-per-share so they are doing a good job on controlling costs, but when it comes to same-store sales, that was only up 1.2%. that is not great, and analysts were already moderating their expectations on what those sales would be coming into this. some had lower their expectations, and they still missed analyst expectations. the ceo said second quarter will not be great either, sales flat or down. an ugly picture in the second quarter. >> walmart shares are up around 8% after reporting earnings that
the analyst estimates. -- that beat analyst estimates. what surprised you the most? >> the traffic at walmart in the u.s. was quite strong, up one -- up 1.5%. that was terrific. it more than drove the comp because the comp was one. ticket was a little bit lower, but to get the foot traffic into the stores, that is everything for walmart because it means people will buy stuff. >> we saw target report disappointing earnings. stocks fell more than 7% yesterday. is this just a signal that u.s. consumers are shifting from a target, a higher-priced store to a walmart, which is more of a budget focused operation? >> yes and no. i think the dollar stores will probably do very well and target put up good numbers, but clearly in those types of markets, walmart wins and walmart often does win when there is pressure.
>> shares have leapt after it says it was cash positive. that comes as the third largest platinum producer saved the business effectively. how much further do you think you can go on the cost front? >> it is amazing what you can do in tough times and we have done what we promised. our cost program is 67% complete, which means we are ahead of schedule. we are working very hard and we have removed high-cost production. we are still removing some of the high-cost production as well. and what we promised in the oversupplied market, so the cost-cutting is bearing fruit. >> the price is up. how much is that helping out? hasn't given you more time than you thought you did not have? -- has it giving you more time than you thought you did not have? >> not at all. we are focusing on the things that we can control so we are continuing to cut our costs. we want to make sure we position
this business in the best possible position such that if the price increases, we are only increasing our liquidity, our cash, our returns to shareholders. it is important that we increase the cost-cutting program as scheduled. >> tencent earnings hitting a record in the first quarter, pretty much driven by its mobile games and entertainment content. net income at 73%. you are seeing a share price drop, 2.7% down right now. what is going on? >> i think it is a concern on the cautions yesterday about the potential slowing down in china's economy, and also in terms of ad growth quarter on quarter, or was a weakening down 18% even though year was up 70%. some investors are saying this is a potential sign that the segment of the business is maturing and once you have
maturing, seasonality comes into play and inevitably it will be affected by the wider economy. >> shares lower after the company reported a drop in earnings for a second year in a row. it is it worse than they were expecting? >> things have been quite tough for burberry. the savings plan is going in the right direction because costs have ballooned. it is really not enough to tackle the fundamental problem which burberry had, it needs a refresh. >> how do you refresh a huge brand. it is the biggest luxury brand in the u.k. >> you need to bring in fresh, creative talent. there has been lots of talk of bolstering daily operational -- daily operations. you need a new creative force to
get local customers shopping again and not rely on the chinese travelers. >> we are going to turn to cisco. they posted quarterly earnings. how far along in the transition is cisco at this point, and how much are we seeing in the earnings reported? >> what to solve this week in our announcement are three great examples of our portfolio, which is cloud-based networking where we drove growth in those businesses but also saw significant deferred growth in software. so, to answer your question, we
are in the early days of this transition. but we have proven in those businesses we can make this transition, and we have a plan underway to take that methodology across the balance of our portfolio. shery: up next, a fresh insight of titans of global money management. how much sleep do we lose over chinese debt, brexit, and other headwinds? we look back at the best interviews on "bloomberg best." ♪
♪ shery: this is "bloomberg best." i'm shery ahn. this week on "bloomberg television," we spoke with some of the world's most important figures in asset management, private equity, and investment banking. they are all dealing with challenges in politics, volatility in the markets, and mixed forecast for global growth. we revealed the week's best interviews.
we begin with blackrock's larry fink, who is bullish on china, but has some concerns. >> i would give the chinese leadership some of the best marks in trying to transform their society. we're on the fourth year of the plan. to reorient china away from manufacturing, away from an export, dependency economy to a more resilient and service economy. that's a very hard thing to do. it takes many countries 50 years to do that and countries generally have possessions in the transitions. so to say china most recently in form of policy behaviors overstepped -- the market is saying that. the market is saying that china's dependency on debt and the leverage of the balance sheets and the continuation of investing in some of the
unproductive state owned companies is not a good long-term solution. i would say, indeed, it is not a good long-term solution. hopefully this is only a short-term remedy and they get back to the basics of trying to build a better domestic economy. >> are you worried about the debt pile in china? >> we have to be. but to grow 6-plus percent, you can grow out of your problems, but you can't grow 6% and have your balance sheets grow faster. in the future, i would much prefer the economy growing at 6%, but at the same time, some form of deleveraging. >> but we don't do is take a top-down approach to investment and say political risk are two great in this country. >> not even for brexit? >> i think for brexit, the asset management between banks and
insurance companies and asset management, and that's mainly because most of us have always ran our european operations out of luxembourg. so, an investor in germany, france, italy, luxembourg is their hub, as we in europe -- we in the u.k. would buy u.k. registered funds or perhaps dublin-registered funds. we are not going to be hugely affected. but if we do, there will be some unintended consequences we hadn't thought about and not be -- about and not be quite as much market volatility. >> volatility or could it be a freeds or lehman-like moment? >> no. i don't think so. it will be very uncomfortable for a few days. currency will be volatile. the share market will be volatile. people will try to work out what the effective.
i think part of that is because markets are really pricing in. we are staying in currency markets. so, there could be, as i say, extreme volatility if we vote to come out. >> i would say, simply put, we are in the proceed with caution step. so what we have done in response to this more tepid economy is, our fund sizes are sized to intercept. we have 1,000 people globally. we're staffed up to invest responsibly and really proceed with caution. so we have about a $7 billion-dollar u.s. fund and we have sized it to fit where we think there are opportunities. >> give me a little more detail, if you don't mind. what from a private equity investor, what does proceed with caution mean?
how does that translate into action? what are you not doing that you might do in, say, more confidence was marked -- in more confidence? >> i'll tell you what it translates to. there are many companies that are selling at a very large premium now that are staple, -- that are stable, high market share companies. and probably not much to do with them. they are pretty well run. people are sometimes paying 13 or 14 times -- for those companies, and those are the ones who say this is the kind of environment we want to stay away from, because we don't see how we could do that much better. >> have any u.s. technology companies really cracked the code in china? >> i think you know the answer to that. it's no. i mean, we are all trying our living hearts out to do as much as we can to both hold to our standards and principles as a company, but find a set of
things we can make us concessions to the chinese government, that gives us access to the billions of users that are there. and it is balancing the standards that we have in the consistency that we want is the run our business with the interest we have, and having access to those users. >> could india be a replacement market for china? >> no. it certainly can be a is up emanual market, because it's one of the few growing economies in the world but you cannot replace a 6.8% billion people growing and their g.d.p. growth is still more than 3 times ours in the u.s. so you cannot replace china. you concert may augment china by having a stronger focus in india, but you cannot replace it. >> retail sales holding up pretty well. core cpi also rose.
what point does it become harder to for the fed to not hike rates? >> i think it is supportive of most of what we see. empire yesterday was on the softer side, but generally supportive of the idea that people see rate hikes this year. and we are getting that story from the fed. people like williams. if you look at what fed president dudley said on monday, lastly, it is certainly supportive of the idea that we will get some hikes. >> the pipeline is good. i think it still doesn't have as many big deals as we had that the time last year but i think -- but the flows are quite strong. it is for the across all sectors. the health continues to be quite active. we have seen a lot of pick up in activity in consumer across the technology sector. i think we are blessed about the pipeline. it is a lack of the mega transactions that embody the pickup last year that we have not seen as much.
>> what do you make of it? why? >> i think it is a couple of factors. the limited organic growth opportunities for biggest companies and lots of capital at cheap rates so they can drive growth the m&a quite easily. that's the process they gives us reason -- that gives us reason to hope. i think the challenge is there's greater head winds in 2016 than we saw last year. i think there's not the chance we would see something else. and the government has been a lot more active blocking transportations for trust and tax reasons and in relation to the largest transactions, that's what's shown activity to a large degree. ♪
"bloomberg best." i'm shery ahn. early this week, the price of crude oil hit a seven-month, -- seven-month high, but is the rally real or just a flash in the pan? we discuss the prospects of oil on "bloomberg television." is the oil market ready to make a turn? vice chairman says "yes." by his estimates, we will see a market back in balance with declining production and rising demand pushing oil prices to $50 a barrel. >> i got a flurry of reports, you've got goldman, morgan stanley, and barclay all coming out saying, "oh my gosh! we're going to see the market turn faster than we thought." what happened in the last couple of weeks? >> we have been saying since february, we thought the second half of the year would be quite different because we could see production coming down in the united states. the production is now accelerated. that is what has got everyone's attention. we have seen a series of disruptions that tells you, as
the market tightens, disruptions would be more significant so it's based upon no major disruptions. if you have venezuela blowup with some fear, we could be looking at a different situation. >> many have dom out saying we -- many of the big banks that have come out are saying we are going to see prices lower in the third quarter because we're firing maintenance. that was bank of america. goldman sees lower prices in 2017 in the first half because they think more supply will come online. what do you think? >> i think there are two sources of supply that would come online. one would be somewhat of a recovery or stabilization in u.s. oil production. the other thing is the new stance of the big middle east producers led by saudi arabia. the arsenic a different message now. the arson a message about putting more supply into the market. -- they are sending a message about putting more supply in the market and iran wants to put more supply into the market. but we see next year, assuming about 1.3 million barrels a day
of demand growth. that is kind of where we see the balance -- kind of where we see the balance. >> you had the callout yesterday. my interpretation of your call will short-term bullish, long-term bearish. break it down. >> well, our average forecast over the next seven months didn't change, so we brought forth some of the bullish to bear term and then took some of the bearishness and put it in the fraurt. -- put it in the first quarter. the key conclusion is to think about the half life of these disruptions. canada, we think of a short life and when we think nigeria, we expect it to be longer. but it strikes some of that bearishness as well as iraq. so when you put it altogether it shows bearishness followed by some bearishness in the first quarter pushing us back into the 45 range. followed by bearishness in the first quarter with inventory bill pushing us back into that 45 range. >> and basically like a dollar
away from that now. do you feel like the market has run up too far, for that level. -- for that level? >> given the magnitude of the shot, you have a million dollars -- you got a million barrels per day out of canada and out of nigeria. so i'm shocked it's not higher. i argue because inventory still so high that they can turn to inventory to bid up canadian or nigerian oil. >> now, we see better prices in the market. i think demand has been increasing. in canada and libya and nigeria. and the shell oil. it seems that over 3 million barrels per day has been cut already. to maintain 92 barrels per day, you have to maintain strong investments. over the last two years, 30% of
this amount has been diverted or canceled. this tells you demand would be picking up. this is a forecast everybody has been talking about. so, probably we have seen more stabilized markets. meeting of the june 2 is coming up to have a dialogue is very important. >> would you agree the market is balancing? would you use the phrase rebalancing by the end of this year? >> some of the outages of reduction is -- of course. but i think the forecast everybody has been talking
♪ shery: take a look at the bloomberg by using xa, i took a look at this in this amber color. this accounts for last year about 61% of the company's overall sales. ♪ >> i'm just looking at the function that looks at how the analysts rate the stock athletes -- stocks. not a single sell. >> if you have a question, the
bloomberg probably has a function to help you answer it. keep watching "bloomberg television" about our favorites. >> symbol question, what's actually healthy for you to eat? we know this is good for you, but what about this? this? or this? if you're confused over what is and isn't healthy to eat, you're not alone. knowing what to eat is comp -- knowing what to eat is complicated, and the reason is as green as your leafy vegetables. a draft of the most recent government dietary regulations -- recommendations says a healthy diet is lower in red and processed meat, which has shown an increase in cancer and other
problems. the youth and unreliability of nutrition science adds to the confusion. the relative use and unreliability of nutrition science adds to the confusion. fat is an example. in the 1980's, scientists associated saturated fats and butter and cream with heart disease causing many to switch to margarine. when the science later concluded the transfats in those were more dangerous, people started avoiding fats altogether, resulting in a no fat dietary trend in the 1990's. that led many to increase the carbohydrate and sugar, which caused the type 2 diabetes epidemic in america. nutrition science relies on observational studies, which can connect cause-and-effect. all of these companies observational studies. it is impossible to know for sure if these connections are
real because so many factors can affect the outcome. here's the argument -- 2016 nutritional guideline won praise for what you should be eating like vegetables and whole grains. but they were criticized keeping the what not to eat section vague. critics say food lobbies are to blame. 204 pages, many say the guidelines on what to eat are simply too long, too complicated and too influenced by outside forces. some experts think the u.s. should keep it simple, eat in moderation, lots of fruits and vegetables, and go easy on the salt and sugar. ♪ shery: you can find our quick takes on bloomberg.com along with all of the latest news and analysis 24 hours a day. that wraps up "bloomberg best" this week. i'm shery ahn. thanks for watching "bloomberg television." ♪
♪ emily: i'm emily chang and this is the best of "bloomberg west." we will bring you all our top stories from the week. coming up, the google developer conference is all about ai and vr and we hear about the xiamoi about their new android tv set-top box. plus, facebook faces a fallout of accusations their trending topics section is biased. we would hear from one conservative voice who met with mark zuckerberg. and, he handpicked a man to lead -- he handpicked satya