Rival, bill ackman. Not the best return on a short position. Julie irelands Prime Minister wonders exactly what Great Britain is looking for in brexit talks . Where we are confused and puzzled, what does the United Kingdom want with the European Union . Julie central bankers take center stage at jackson hole, and we sit down oneonone with two fed president s. I think you have to be careful on the estimates as opposed to the broader trends. I think we should be removing the accommodation, but it should be Done Gradually. Julie plus, a roundup of the weeks most intriguing earnings report. We had a very high quality set of results. We have to be patient, we know what our businesses are worth. Julie it is all straight ahead on bloomberg best. Julie hello, and welcome. Im julie hyman. This is bloomberg best. Your weekly review of important analysis from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. The week began with the major deal involving a pair of European Energy companies. Another sign that m a activity in the Energy Sector is picking up today. France total agreeing to buy oil and gas unit. The price a little over 1. 9 billion in cost. The chief executive told bloomberg surveillance that total was the right suitor for the company. We looked at the various options, everything from ipo and also possibilities for selling the business to other parties, and came to the conclusion that the offer from total was the most attractive both from a value point of view, and also the commitment that total is making to develop the business in denmark and elsewhere. During a Conference Call with reporters, emphasize that he was actually acquiring very good operational expertise, and this is something you just dont get like that unless you buy it, and this is what he is doing. They were both interested in iran and africa. So, it looks like a very good deal in that respect for total. President trump announcing an openended commitment to afghanistan that would put more american troops into the nations longestlasting conflict. He pledged to keep u. S. Forces there as long as it takes to deny terrorists a haven and bring about a political settlement with the taliban. Pres. Trump our commitment is not unlimited, and our support is not a blank check. He will add about 4000 troops to the already 8600 troops on the ground in afghanistan. This is something he had advocated against on the campaign trail, but said he ultimately went against his instincts and decided on this after carefully studying the situation. I dont think this is going to have a big effect on Financial Markets. Again, this is a very small lift list of troops. It is not trillions of dollars as we were spending some years ago. I think it was a good speech and it is a good foreignpolicy decision. John we have gone back to the 1930s according to ray dalio. Politics will probably play a greater role in the Financial Markets then we have experienced in any time in our lifetime. But in a manner probably similar to 1937. He said he is tactically reducing risk on concerns of impaired government efficiency. The recommended that they put 10 of their assets in gold. I dont have as extreme of you as he has. There is no doubt coming into this year, there was a lot of expectation that we were going to see some sort of tax reform, maybe regulatory reform, and fiscal spend, and that would be an impulse to the u. S. And global economy. All that seems to have faded, but the market has shaken it all off. David President Trump was back in Campaign Mode last night with a fiery speech to thousands in phoenix, arizona in which he took down everything from the nafta to the media that the two republican senators from arizona. What may have got the markets attention was his threat to shut down the government over the wall. Pres. Trump believe me, if we have to close down our government, we are building a wall. David a lot of people thought it was going to be hard enough to keep the government open without the president weighing in. He is saying lets load it up with a border wall. That is exactly right. The president is throwing a wrench into the process. The republicans are preparing to come back to washington with a number of things on their plate, including passing a budget and raising the debt limit. Now, the president is drawing a line, saying in order to keep the government open, he has to have funding for a wall. There is no consensus in congress about how to pay for a wall, let alone how to pass a budget and raise the debt limit. This is going to be something difficult for the republicans to do and the president made it harder. I think as far as investors are concerned and markets are concerned, they fully understand the president s legislative agenda is stalled. That has been priced in. But there is also the rising existential risk for the u. S. Presidency, many investors that i have spoken to are worried the that maybe President Trump wont see out his term the way things are going. It is going to be a bumpy ride going through september on the fiscal side. And i think market volatility will inevitably increase. Vonnie after threatening a government shutdown, President Donald Trump blaming the debt ceiling mess on gop leaders in congress. This morning, the president tweeted, quote, i requested that mitch and paul tie the debt ceiling into the popular v. A. Bill for easy approval. They did not do it, so now we have a big deal with dems holding them up on debt ceiling of her will have been easy, now a mess. Ceiling approval. Could have been easy, now a mess. This is really complicated politics by now, but there are two storylines to watch. One is what is the president s desire on the debt ceiling . The second one is, what is going on with the infighting in the republican party, particularly the fight the president has been picking with Republican Leadership . That is not the only tweet this morning. There is also the one in which he said, the only problem i have with Mitch Mcconnell is that after hearing repeal and replace for seven years, he failed. Janet yellen about to speak in jackson hole and lets get the details from bloombergs michael mccain. Michael mckee. Everybody, take your fingers up a trading button. You will not be trading are selling on this one. This is the boring janet yellen. Her speech largely a recitation of the history of the financial crisis, and repertory failures, regulatory failures, and how things have improved since then. Two dozen that there is some rope for improvement, and that other tweaks could be made to doddfrank regulation. But in general, this is a speech about Federal Reserve and government success in regulating the Financial System since the crisis, and not at all about the economy. Mario draghi took this occasion not to deliver a policy message, not to signal what the ecb does or does not do next, or when. He took this more as an occasion to talk about what the big challenges are globally. He is especially concerned about openness, and is concerned about protectionism. And he is concerned about how to make multilateral cooperation sustainable, fair, equitable. But when it comes to the currency, what you can take away is that either mario draghi is not concerned about the euro because he did not explicitly single it out. By not singling it out, you could say he is not worried. On the other hand, you could say mario draghi doesnt want to maybe fire up the euro bulls by indicating he will slow them down. You know how currency markets are. Julie still ahead as we review the week on bloomberg best, irelands Prime Minister weighs in on brexit. Plus, two Nobel Laureates size up Mario Draghis pronouncements on qe and twos fed president s share their outlook from jackson hole. Coming up, more of the weeks top business headlines. Samsung unveils its latest galaxy note phone, hoping you can erase members of the memories of the previous model. It has a very large screen, large display. It is the biggest phone yet. Julie this is bloomberg. Julie this is bloomberg best. Im julie hyman. Lets continue our global tour of the weeks business stories with a clash of investment titans. Carl icahn and bill ackman on continue to battle on the future of herbalife. Herbalife. This may be the stock that has the highest ratio of mentions to market cap of any Public Traded Company in the past few years. And is back in the news today with an announcement to do a buyback of a good portion of its stock in a reverse dutch auction, and that the major shareholder, carl icahn, has agreed to limit his holdings to no more than 50 unless he wants to buy the whole company. Is this carl icahns victory . Certainly. In his fight with double bill ackman in the stocks. Bill ackman took a short position in 2012. David where was the stock trading then . About 50 lower than now. Below where it is trading now. So, you know, not the best return on a short position. What does all of this back and forth between carl icahn of and the company, and the fact that this private equity deal, what does this tell you about herbalife right now . Well, the fact that there is some interest is positive by a private equity firm. I think they will go back to the ultimate peak of sales, which was it. Which was a few years ago at 5 billion and i think they will in you to grow at the Historical Rate of 8 and grow to a significant level from there. A new player in the Energy Battle between paul singer and warren buffett. Sempra is outbidding Berkshire Hathaway by offering to this comes after singers Elliott Management triggered a public battle for the company by announcing its intentions to rival buffets 9 billion bid. I think that is probably more to do with paul singer than anything else. Vonnie why exactly . Well, as you recall, Elliott Management owns the bulk of their unsecured debt and didnt agree with the terms of the buffet bid. So they opposed it. And now, we have obviously got a raised bid that addresses some of the issues they had with the unsecured debt, and how much they were going to get paid. It looks like they will get about . 45 to . 50 on the dollar as opposed to . 18 from buffet. Mark the bar for the iphone is set high. Investors eagerly await the latest device. The spotlight is on the features of the phone as it coincides with the 10th anniversary of the iphone. Is the new iphone, the superduper version of the iphone, will it be a demonstration of this apple philosophy lets not be first, lets be best . Yeah, you got it. The sharper contrast screen that shows colors more vibrantly, more accurately, inductor inductive charging, bigger screen and the smaller form factor. These are all ideas that have been tried before. We have the essential phone launch last week. We have another samsung launch earlier this year. With this idea that they are going to put a really big screen in a really small phone. And that is exactly what apple is going to do with this soupedup version of the iphone. They are going to have this 3d sensor. We describe it as the crown jewel of this iphone 8 pro model. Instead of using your fingerprint to log into the phone, you will be able to scan your face. It will know it is you holding the phone and looking at the phone, and it will know to stay unlocked or lock the phone or when it is you actually using the device. Samsungs mover has launched a new galaxy 8, stepping up the fight with apple. The largest Samsung Phone yet, quite possibly its most important. It is the latest phone since the last one was scrapped after reports of catching on fire. They had a flashy event here in the park armory in midtown manhattan, and they revealed a lot of the details about the phone, which i am holding in my hand. Some of the main differences are it has a very largescreen and a very large display. It is the biggest phone yet. Another added plus is the stylus, which is skinnier and more pressure resistant than before. On top of that, they also have a dual camera lens in the back, so talking to people here, it seems there is a lot of excitement about these improvements, but we are still going to have to wait and see if they bounce back from the problems of last year. British Prime Minister theresa may once vowed to take back control of the countrys lords of europe. Now, her government is willing to accept a cooperative relationship with the European Court of justice. A new positions as a u. K. Is open to a biting bypassed ecj abiding bying to ecb rulings, and even referring decisions to it. Is it a red line that has been scrapped or diluted a little bit . Yeah, it is a redline that has become wiggly, perhaps. A bit more it was of huge importance to the brexiteers. Theresa may had said in october that brexit meant leaving the jurisdiction of the ecj and what they are saying now is it means leaving direct jurisdictions. They are abiding by past decisions of the ecj and as one of the ministers said this morning, they would keep an eye on it. Securities and Exchange Commissions commission have has signaled to Financial Firms it is working on a fix to allow u. S. Brokerages to sell their Market Analysis to european money managers. The practices under threat from two regulations that come into effect january the third. Under new rules in europe, brokerdealers, big wall street banks wouldnt be able to bundle their Free Research with other services they offer. If they did, they would come across new rules in the u. S. , additional rules they have to register with asset managers. They really dont want that, it could be costly, open them to legal risks. So what they have been doing for months is pushing the sec to compensate some way where the rules can be tweaked, or continue to operate as they still do, while complying with the european rules. What we have learned is that the sec now seems to be picking up the pace to come up with something. But the clock is really taking. Vonnie paris or frankfurt . That is the big question buzzing around at bank of america. Executives are divided over where the european trading hub should be after brexit. My reporting is showing inside bank of america, there are all of these deliberations going on to figure out where should we go after brexit . Where should are trading where should our trading headquarters be . What i in hearing from peoples what im hearing from these people is that we have three cities on the list at this point. There is paris, frankfurt and dublin in the mix. It is a possibility for bank of america to choose multiple locations. Some of our reporting was showing they may end up having equities in frankfurt and splitting off fixed income in paris. Or you can see parts of fixed income itself being split amongst those two cities as well. A lot of discord, a lot of debating ideas that have been floated. President donald trump has been promising to ease financial regulations in a piece out from bloomberg today. These proposals under consideration could raise profits 20 to six of the largest banks, adding 27 billion of gross profit. Among the banks that could benefit the most, jpmorgan, chase and morgan stanley. Where is this money coming from . Right. These are the rules that banks have complained as they were being implemented. They were being dragged into these things. They always said no. This is going to hurt us. And of course, the earnings have been muted over the years. But slowly, they have in have been creeping up and improving and these were relaxing some of the rules. They could help they could help buy more treasuries and buy more municipal bonds. All of these kind of things and they make more money because they dont have to hold more cash. The liquidity doesnt have to be as much. These are small tweaks, but when you add them all up, it is good money. Amazon will start cutting prices at Whole Foods Market on monday. The same day its 13. 7 billion deal is set to close. Whole foods will lower prices such as chickens, eggs, and some vegetables. Grocery stocks did slip on the news. Investors think amazon is going to come in and do something with whole foods and reshape the grocery space. Is it possible . We knew they were going to do something, but it is surprising how fast. They are doing this monday. We were calling around this morning to whole foods stores. Managers are saying, i dont know what you are talking about. [laughter] they did not even get the message yet. Perhaps a pr gambit here, but it takes time. Amazon is going to a sector they have never been in. Changing prices and doing that usually takes days, weeks, for a Traditional Grocery to do. Amazon is saying, no. We are amazon and we are going to do it monday. And the price of kale and eggs and chicken are all going to be changed. Theyre going to throw their dynamic pricing algorithms and the industry that has never experienced them before. Billionaire samsung heir, jay y. Lee has been sentenced to five years in prison after being found guilty of perjury, embezzlement, and bribery. His lawyer has said they will appeal. He has been found to be of embezzlement, perjury, and bribery. Four other executives in the court with him were also found guilty. The other two got suspended sentences. Essentially, the court found him guilty of currying favors, giving money, bribes in order to consolidate his power in samsung. You heard just a few minutes ago from the current president who said that it helps the samsung ruling would end government business collusion. Julie welcome back to bloomberg best. Im julie hyman. As Prime Minister theresa may tries to negotiate the brexit, it has been slow going. The economic path forward is none too clear. While visiting canada this week, irish Prime Minister spoke frankly with Bloomberg Television about his frustrations with the process. Do you get the sense that the e. U. Is pleased with the progress it has seen so far . No. I think that id be right to say on behalf of the european governments, that we are not satisfied with the progress that has been made so far. However, we will continue in the ongoing talks. Michelle barnier, david davis, we will allow those talks to continue. We hope the more progress can be made, and that the progress of the sufficient when we meet in october, to allow the tops to allow the talks to continue to the next phase, but to date, the progress has not been sufficient. In ireland, there has been some progress. We are satisfied we will keep the travel area, british and irish citizens will move freely between the two islands. Work, live, access to health, education, as we do now. I have also reassured with the ongoing commitment by the u. K. Government to fund peace Building Measures in Northern Ireland, but an area i feel very strongly about is there shouldnt be a trade border on the island of ireland. And we dont have sufficient progress on that. Say the u. K. Doesnt get that doesnt get the kind of trade deal it wants with the eu with the eu. How concerned are you they say we put in a hard order between the republic of ireland and Northern Ireland . I suppose where we are confused and puzzled is very much at the premise of your question. What trade agreements does the United Kingdom what with the European Union . At the moment, they have the best trade deal possible and imaginable, which is a Customs Union and access to single european markets and the European Economic area. What they seem to be suggesting all along, really for the last 14 months now, if that they want to have all of the advantages of being in the e. U. , but none of the responsibilities and cost, and that is not a realistic position. We are waiting to see what they would like to see. One thing that strikes me here, in canada is that a month from today, the canadian european trade agreement will come into force when britain leave the European Union, it is not only leaving the European Union, it is also leaving those trade agreements europe has made with countries like china, japan, south korea. So, it is not yet clear to us, what are these better deals the British Government wants from europe and other countries . I think some more clarity in that area would be helpful. Julie coming up on bloomberg best, more of the weeks most compelling conversations. A couple of nobel economists talk about the ecb and the future of qe. And we caught up with a pair of fed president s and jackson hole. We are little closer to the neutral rate than people might think. Julie this is bloomberg. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Julie youre watching bloomberg best, im julie hyman. Ecb president mario draghi was a busy man this week before delivering his highly insulated speech at jackson hole, he addressed the Economic Sciences before an audience that included 17 nobel prize winners. Two of those laureates spoke with Bloomberg Television about draghis remarks on Monetary Policy. Obviously they have a problem, in the sense that as quantitative easing was an experiment in our modern times, quantitative tightening will also be an experiment in our modern times, and that means that they have to decide what rate and how to reduce the large Balance Sheets that they currently have. And second is how that interplays with increasing rates. I think at the current time the markets tend to be sanguine in a sense, let us wait and see and watch them evolve, that process of reducing the Balance Sheet and increasing rates. My view is that the threat of inflation tends to be muted and that gives them more degrees of freedom to experiment and to see how to reduce the Balance Sheet size. But not do it precipitously or with the great threat associated with inflation hanging over our heads. After Mario Draghis centrist speech, it seemed like the trade was, you want a short bund and with the trade that played out in the u. S. In the past be the last few months as well. Is that still your base case, is that still the smartest way to go into fridays speech in the ecb paper world . Not really, in my opinion. I think that basically after the trump election, united states, there was a great belief in the changes in policy for capital investment. And deregulation changed and tax rules, infrastructure spending, which was actually growth impetus for the market. And also with the depth, inflation, maybe then, a steady increase in rates, and obviously, we have seen over the last period of time, rates have tended to fall off, and the view is that the u. S. Might be in a weaker position than is europe. So is that the market tends to be signaling strength in euro and yen and a weakness in the dollar. At the same time, thinking there could be an increase in rates, within the real rates, within the euro to a greater extent than in the u. S. So it is really more so, that it will be a headwind i think for equities but not necessarily a huge downdraft at this particular time. But a lot of conversation the , u. S. In particular, about passing the baton from Monetary Policy to fiscal policy, and we have seen that handoff fumble a fumbled a bit here in the last few months. How do you ensure it happens most efficaciously . I think it is very difficult. It is a little hard to understand why the reaction of politicians and even the public, to a crisis, tends to be fiscal contraction and concern about deficits. When in fact, the appropriate response would be fiscal expansion when our inflation rate is too low. I think what we really need to have a willingness on the part of policymakers and even central bankers to talk about the extent to which their ability to control inflation depends on cooperation from fiscal authorities. David what did you make of the comments that president draghi made this morning about Forward Guidance and the way that Central Banks communicate what they are looking at or what they intend to do . How much of the deficit do you feel as to the way the Central Banks communicate their thinking . Chris i think that it is true. They have, they tried to communicate their willingness to keep Interest Rates low for a long time, and one of the ways that unconventional Monetary Policy was, had some effect was by demonstrating that they really had a commitment to expansion. That helped to back up their assertions about long periods of low Interest Rates. And i think that communication did work and did have some good effects. Julie but the main event for central bankers this week was undoubtedly the jackson hole economic symposium. Bloombergs Michael Mckee was there, and he sat down for interviews with two top Federal Reserve officials. Starting with Kansas City Fed president esther george. Esther so when i think about inflation, mike, i think about our mandate which is priced the stability. Relative to an economy that is growing at 2 and is adding jobs, i think you are in a pretty good place, and we still have very accommodative monetary policies. That tells me we should begin to, as we have indicated, gradually removing that accommodation. As long as the outlook supports that we are moving in the right direction, and i think we are. Michael so that suggests you are in favor of yet another rate move this year as the dot plot would indicate . Esther that was my last forecast, and each time we put those together is a new opportunity to look at the data. So i will be looking at the data in the next few weeks as we get ready for the september meeting and see whether that still makes sense. Based on what i have seen today, i think there is still an opportunity to do that. Michael so by the end of the year . Not necessarily in september . Esther no, not necessarily i dont pick a meeting, and i dont consider that rate cap or path orojections those projections a commitment. Michael to what extent is inflation a lagging indicator, something that fed officials have argued for a long time . In other words, is the phillips curve broken, or lower than it has been in the past, what has happened to inflation . Esther i dont know if i have a good answer for you there, many people are studying that very issue. The things i look at when i look at inflation, goods the price of , goods, that has been falling. Maybe that is due to technology. There are a number of factors i think may be pressing down. When you look at services, which is 2 3 of the economy, you see that those rates have been stating at 2 and higher. They have been staying at 2 and higher. In the context of the economy we have today, i think you have to be careful getting too focused on point estimates as opposed to the broader trends that you see in the expectations that are out there. I have been a strong advocate that we raise the fed funds rates twice this year, and that gets us to 100 to 125. My only judgment is that we are making progress on reaching full employment, gdp should grow an extra 2 this year. We are obviously not meeting our inflation target, but the bigger thing i would say is, we are a little bit closer to the neutral rate than people might think. 10 years ago i might have said that the neutral rate, the rate at which were neither accommodative or restrictive, would be maybe 4 or 5 . Today, i think that number is closer to the midtwos, maybe 2 or 3 range. That means that 120 to 125, we are accommodative, but not quite as accommodative as people would think. I think there are Structural Forces in the economy creating a muting effect on inflation, so i think we should be removing accommodation, but i think it should be Done Gradually and patiently. I think we can afford to do it gradually and patiently which is all i have been advocating. I want to be patient and see how these forces are unfolding regarding inflation, and i think we can afford to be patient. And does not mean we might not raise it one more time this year, but i would like to see more data that we are making progress on our inflation mandate. I think we have the ability to do that. Michael if inflation stays about where it is, does that rule out december for you . Robert i would not prejudge it. I still believe that the cyclical forces, as we are removing slack from the labor force, more people employed, we are creating some wage pressure. We are creating, the likelihood to create some lag with price pressure, not the way we have seen historically. I do not think it will be as binary as inflation is moving, i think inflationary pressures are moving, i just think they are moving gradually and the fed can afford to remove accommodation, therefore, gradually and patiently. Michael if you leave the rates where they are, is that actually going to actually help bring inflation up . Robert i think the key judgment you make when youre talking about if we are accommodative, i think we clearly are. Lets say the neutral rate today for example is in the mid2s, and we are 100 to 125. We are still accommodative. I think that is where we are, all things being equal, and i think that the performance of the economy is consistent with that view. Julie this is bloomberg best, im julie hyman. Earnings season is winding down, but investors still have plenty of Quarterly Results to chew on this week including from the , commodity sector. Bhp billiton shared some important news. Bhp billiton reporting a miss on underlying profit, coming in at 6. 7 billion, and a dividend of 83 cents per share. The headline grabber though, was the companys plan to sell its u. S. Shale unit. Haidi what is your preferred strategy to make a clean exit . For now our prepared strategy is to make a small number of trade sales. We are keeping other options so that we can proceed with a reasonable amount of pace, but for now, we think a trade sale would work best. Haidi how quickly are you planning to complete an exit . Andrew i think it is too hard to say that. We have to be patient, we know what our businesses are worth. We will continue to add to their value through our technology and sort of modest investment. But on the other hand, you know, we dont want to lack urgency and that is why we have other options in the wings if trade sales are too complicated and too difficult to execute in a reasonable time. Yvonne rishaad it is the worlds fourth biggest iron ore exporter and it is out with its annual reports. Fortescue metals group doubling more than that. They are trying to slash costs. Good numbers. Walk us through the first. We had 170. 4 million tons of product shipped. That is an alltime record for fortescue, albeit it is one million tons over last year, because we have been focused on making sure that we create growth and value for our customers and for the company. Costs are down a further 7 , and in cost terms, that is following our focus on productivity and efficiency to make sure that we have got long term Sustainable Low costs across the business. We paid down a further 2. 7 billion worth of debt with the cash flows that we have been generating. As you mentioned, we have more than doubled net profit after tax to 2. 1 billion. And that has followed on with a dividend of . 25 , a final dividend of the year. Anna in the mining sector, they have given us their numbers. Coming in at 1. 08 billion, and aroundus comments, copper production, talking about the outlook ba positive. Flesh that out for us a little bit. We are very positive on the Copper Market generally, and i think the strength of the company, on the back of the first half, also talks to a good outlook in terms of performance. We had a very good high quality set of results in the first half of the year. Our production is up 7 , sales up 14 , costs down 2 . And all of this has enabled us to capture an increasing copper price which we had in the first half of the year. Manus are the prices sustainable, and do you see a deficit in 2018 and 2019 . I think in the copper space, the outlook in the emerging markets, especially in china is much more favorable. I think we are seeing sustained growth in copper demand, and this is linked to urbanization and also to the move that china is doing in the consumer economy is much more intensive in copper when it comes to electronics and appliances and the likes. I also think we are seeing a very significant change or Disruption Technology wise with electric vehicles in the space of clean energy and clean transport which is amazing. South32 reported earnings that jumped eightfold, the underlying profit rose to 1. 15 billion in the 12 month of june. How much of it was because of the recovery we have seen in Commodity Prices . Paul a very large part of it can be attributed to that, betty. Very good results from south32. Eightfold increase in profit, still missing a bit at 1. 15 billion, a little bit closer to billion, but that is not had. 1. 18 billion, but that is not bad. It was about the recovery in the coal price, important to south32 , and manganese as well, of course south32 the Worlds Largest producer of south manganese. Commodity prices today continue to hold strong, and i think that is the predominant issue we are seeing in china. Economic development has been stronger than expected and this has led to dramatic shift in the next 12 months. Salesforce reporting better than expected Second Quarter earnings. They raised their revenue forecast for the fiscal year, but shares are falling in extended trading, down about 2 right now. Competition is ramping up from Companies Like microsoft, oracle and cloud services. What is the main takeaway when you look at the numbers now . I think overall a very good quarter, you will see that overall all divisions did very well, even the Large Division sales, cloud growth, accelerated. I think there is some confusion about billing guidance for next quarter, but you look at it, i think they were looking at growth of 18 this quarter, that came to around 27 or 28 , and i think next quarter it is not as strong. But if you look at a company like salesforce right now theres a lot more seasonality , in business, like any Large Software company. A lot more deals close in the Fourth Quarter with larger clients, and i think you will see a shift in revenue, which is what you are seeing here. Rishaad the chinese delivery giant zto reported earnings that missed estimates as well as thirdquarter revenue forecast, even below the lowest analyst predictions. What do you do about getting yourself weaned off of one company, and i am talking about alibaba. I think 75 of your parcel volume is from that company. Now, how do you diversify from that . That is a good question. Actually we have been a very longterm and very Strategic Partners with alibaba. And actually, our exposure to alibaba platform has been declining over time. Last year it was about 75 , and now it has declined to about 71 or 72 this year. So but we think we share a common goal with alibaba, because our common goal is to improve the Service Quality that we provide to the many merchants and also consumers at the alibaba platform. So that we can attract more merchants doing business through the alibaba platform and also attract a lot more consumers to spend on the alibaba platform. So everyone will benefit from that process. The shares in wpp has plunged this morning. That is after the Worlds LargestRevenue Company cut its fouryear revenue forecast and market spending particularly in the consumer goods sector. There have been concerns around wpp. There is real confirmation that the pressures people feared, such as cutting back on spending for the biggest clients. That is starting to hurt wpp. Mark the ad market has been hit recently because of brexit, but you weather that. The u. K. Is one of your strongest performing regions in the last quarter. How are you weathering that . Well, i think that may have something to do with more the microlevel and very good business. We had a strong market share, a lot of good people, doing a very good job. I think that is one of the things. The other they may be this is just a hypothesis, but with uncertainty around, fixed capital investment, there is a lot of pressure. The brand innovation, the innovation of brand in this uncertain environment as we may or may not go through a transition period in brexit after march, that could be putting more pressure on and that people may be taking the other route of variable investment in marketing. Julie bringing Fresh Produce from rural farms to urban tables can be a challenge. But it has also created opportunity in the growing industry of urban farming. Gotham greens builds and operates greenhouses on rooftops in the heart of major cities, using technology to make it possible to grow food yearround. The cofounder and ceo tells us his story in our latest edition of small to big. Gotham greens is a commercial scale urban farming company. We operate hightech greenhouse facilities for fresh Vegetable Production in the city. I was working in the field of sustainability and Environmental Engineering and became fascinated with the technology that was available to be able to grow crops using a small fraction of the resources compared to conventional farming. And at the same time i started to recognize the growing trend in the marketplace for consumers wanting more local and regionally sourced foods. So that is really when the lightbulb moments went off. We cobbled together some funding and built a 15,000 square food rooftop greenhouse in the greenpoint neighborhood of brooklyn in we started pitching 2011. Market chains, restaurants, we started inviting chefs into greenhouse facilities and within three months we were completely sold out of produce. That is when we realized we were really onto something and could probably expand. Then a really compelling Partnership Opportunity came on with Whole Foods Markets, which have been at the time one of our largest customers. We crafted an idea to design and build a commercial scale greenhouse in the roofs of one of their new supermarkets in brooklyn, new york, that was almost double the size of the first one and provided our brand with a lot of visibility. Lo and behold, within a few short months of opening the second greenhouse facility, we were yet again sold out of the produce. So we started to look at chicago, which is also a city with a thriving food culture and a Consumer Base demanding highquality Fresh Produce and that facility is our largest to date, about 80,000 square feet, or two acres, the equivalent of about 50 acres of conventional field farming. This form of farming known as controlled environment agriculture is a combination of Horticultural Science as well as Environmental Engineering. It was a challenge to find people with a very unique skill set. We conceived of an idea to establish an inhouse Training Program we now call gotham greens university. So we are able to take young graduate out of university or High School Vocational programs, focus on science and biology and train them to design facilities and operate them. Our company has built four greenhouse facilities across two cities, and we have about 150 employees. We have experienced about a 20x growth rate since inception. In our first year of operations, we grew about 500,000 heads of lettuce and leafy greens. And last year, we grew over 20 million heads of lettuce and leafy greens. I believe the future will have us expanding to other cities across the united states, expanding into new product and new product development. Our motto is to be able to harvest and deliver within 24 hours, to be able to provide consumers with the freshest possible product and the best tasting product. I am looking at a chart of an intraday california solar production. This is the last three days, try to spot the moment where the sun was blotted out by the moon. Actually, i highlighted it, it is cheating. Julie there are about 30,000 functions on the bloomberg, and we enjoy showing you our favorites on Bloomberg Television. Maybe they will become your favorites. Here is another you will find useful, quic go, which leads you to our quick takes. You can get important context and fast insights into timely topics. Here is a quick take from this week. Julie that was just one of the many quick takes you can find on the bloomberg. You can also find them on bloomberg. Com, along with all of the latest Business News and analysis 24 hours a day. That will be all for bloomberg best this week. Thanks for watching, im julie hyman. This is bloomberg. Got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Haidi the headlines from jackson hole, weekend highlights for Central Banks are on diverging paths. Garuda is speaking to bloomberg, saying japan will need stimulus for some time yet. Haidi set to appeal his five year jail sentence, the implications are beyond samsung. Betty the strongest storm to hit the u. S. In 50 years, harvey drenc