Silicon valley in the spotlight. In a different revenue environment, we are swimming upstream. Market shares are hanging in there, given what the other banks have done. David it is all straight ahead on bloomberg best. David hello and welcome, im david gura. This is bloomberg best, your weekly update of important best review of the most important Business News, analysis, interviews from Bloomberg Television around the world. Lets begin with a look at the top headlines. On monday, the results of a snap election in japan delivered a boost to the ruling party. Prime minister shinzo abes gamble on an early election has paid off. It may have won him a chance to lead japan through 2021. He comes out of this with a stronger mandate. What does that mean for abenomics . It was a victory based on one crumbling opposition. Two, a referendum on abenomics. We have had six straight corridors of economic growth. We have had unemployment below 3 . The stock market this up in areas we have not seen since the 1990s. What we will likely see a is a continuation of abenomics, as well as mr. Abes plans to hike that consumption tax, but not until 2019. And also perhaps move, slow moves to revise the path of his constitution. What are the most significant ramifications from your point of view of the ruling coalitions win . It has to be something of a green light for the massive Economic Stimulus Program in japan over the last few years here, the socalled abenomics. It would be a green light for the bank of japan to carry on with their massive Asset Purchasing Program and a green light for abe to go ahead with a consumption tax increase. The point being he wants to raise taxes not to tackle the deficit, but to Fund Social Programs like education. We may also hear more calls for greater urgency in japan and urgency pushing through crucial structural reforms. Those will be the key challenges for mr. Abe going forward. Chinas communist party has approved a revised charter here enshrining president xi jinpings name under guiding principles. And elevating him to a status that alluded his predecessors. This is the clearest signal we have had up to this point that president xi is going to have a grip on the party, the government, and china well beyond 2022, possibly for decades beyond. This is an archaic form of wording that has been put into this charter here, but it is consequential. They are saying xi jinpings thought on socialism, chinese characteristics in the you year are going to be enshrined in the constitution, putting him on the same level in terms of respect by the party as Deng Xiaoping and mao zedong. It is very significant. Xi jinping has closed the 19th party congress, having amassed more power than any leader in a generation. In a break with a 25yearold succession system, members of politburo will be too old to rule after xi finishes his second term. That opens up the prospect that the president can stay in office beyond 2022. The politics of it are clear. He has consolidated power. It is not clear where he will go on the economy agenda. Will he be emboldened to shake up the state owned sector . Will he go hard on the economy . If you look at the personality promoted today, they were somewhere reformers promoted, but there were some whose background was not in the world of finance or economics either. I think its a little bit of either or. Ecb president mario draghi trying to head for the qe exit, but draghi emphasizing the central bank will proceed with caution. Mario draghi the decision today is for an openended program and it will not stop suddenly. It is not going to stop suddenly. Matt we got was exactly what the market expected 30 billion in bond purchases per month from january through september. That is a cut of half of where we are now. And also the ecb maintaining the two hold to hold Interest Rates where they are well past the end of qe if draghi chooses to end qe at that point. He is sort of stuck by the technicals. He could have had an earlier stop to it. He gave himself the flexibility to carry on for longer and possibly increase if needed. Jonathan Deutsche Bank and barclays struggling. Those thirdquarter results showing trade revenue found more than expected of the two institutions exceeding the decline seen by the u. S. Peers. It is a difficult revenue environment. We are swimming upstream in a market that has seen shrinking revenues, particularly Financial Market revenues. Market shares held in there, given what other banks have done. Clearly i think all of us expect a return to more normalized levels of volatility and revenues in the Investment Banking space. This is an interesting time. You are putting more risk on a fairly unknown period in history. The difference between our deutsche share prices price is the cost delivery. Barclays has given us new range. They have lowered their o. T. Target. At least with deutsche, they are doing a good job on costs. Trading for both of them is weak. The motion is adopted. Vonnie the house has adopted the Senate Budget resolution. This unlocks a fasttrack process to achieve republican s goal to cut taxes by the end of the year. President trump sent out a tweet saying, big news. Budget just passed we are learning republicans in the house will unveil their official tax proposal on november 1, next week. Five days later they will take take it for a markup through the committee process. With the passage of this budget , they are on pace for tax relief by the end of the year. That is good news for investors, but how they will pay for it does remain to be seen. David is it realistic to think we will get done by december 31 . We have a 1000 page bill coming. We have 9500 registered lobbyists in d. C. And we have a ticking clock in the background. My sense here is that we are going to get a bill on november 1. They are going to start a markup the following week. That markup in the house is going to continue into december. At the earliest they will clear the bill in december, at which point we can get actual passage at the end of the first quarter, beginning of Second Quarter next year. Mark catalan lawmakers voted for an independent republic. Today the parliament, the legitimate parliament, which is the result of the elections on the 27th of september, has taken a longawaited and long fought forward step. The great majority of politicians have fulfilled a mandate, which was validated by elections. Mark the Spanish Senate voted to revoke catalonian autonomy. Spanish government bonds dropped, pushing yields the widest in a week. It is a symbol at for the proindependence majority. We know that he came under a lot of pressure to do this and they are going to get power over the region starting with the entire Catalan Government being dismissed from office. The . Question mark is what the response we will get from catalonia. We have seen protesters outside were very happy about this. Madrid will tell you this has to stop. What are we going to get in backlash over article 155 . He cannot stay in office according to madrid. The Catalan Government is claiming to the republic they really dont have proper control over the administration. They have not established the Authority Takes precedence over the spanish state. The signals we have been having theythe government is that want to make it a gradual takeover of catalonia. Their byword throughout the process is that we should be a proportional response. They want to avoid the violent scenes they saw in october one when they try to shut down an illegal referendum. They need to restore their authority in catalonia and they need to do it quickly. David still ahead as we review the week on bloomberg best, David Solomon explains how Goldman Sachs is building up its business in europe. Plus, a conversation with ray dalio. A list interviews in the future Investment Initiative in riyadh. Up next, more of the top business headlines. Carlyle Group Announces a Succession Plan and have clearly put some thought into it. Having this inside outside balance is interesting. David this is bloomberg. David this is bloomberg best. Im david gura. Lets continue our global tour of the top business stories in europe, where eu and u. K. Officials are having trouble establishing Common Ground in brexit negotiations. U. K. Chancellor Philip Hammond wrapping up testimony in the house of commons after European Council president donald tusk revived the idea of the uks staying in the eu. While speaking to matters of the best members of while speaking to members of the european parliament, saying the outcome of talks was fully in the u. K. s hands. They think the cabinet is divided on what the u. K. Wants as a future trading relationship with the eu, and the eu knows until they decide they cant come to an agreement. Donaldk talks tusk talks about no brexit or no deal, does it mean everything will fall apart and the u. K. Will leave the eu messily . Or does he mean somehow things will get reversed and the u. K. Will stay after all . Both those things we need a lot of things to fall into place. They are certainly not willing ruling it out. So far since the date of the Eu Referendum and brexit was agreed, nobody knows how this is going to end. Excessive speed and the this test in the disposal and the disposal of nonperforming loans could derail the recovery in italys Financial System according to the countrys finance minister. This is absolutely vital for all economies, including the italian economy. My point is that we must be very careful in getting the speed right, the timing right. If we do it too fast, we could derail the whole system which is now gaining speed. It is interesting to hear him talking about the speed of dispersals. It occurs to me that that is not necessarily the major issue. The issue is that it is marked at a price way above it would trade in the market. In order for the banks to dispose of these loans, they either have to accept a price, well below they are being marked or they need to find a buyer willing to pay over the market price. The only buyer that would be able to do that is the state and unfortunately, that is in breach of the rules of the european union. Mark struggling commodity trader noble agreed to sell its oil business to this group. Use a medical analogy, is it off lifesupport . Where is it using medical analogies . Not a trained physician, i would say it is still on life support. We have had clarity on key things. The number one thing is the extension on the waiver. That was pretty critical. Yes, they have sold of the oil sold off the oil unit, but there are so many conditions attached. So many escrow accounts. So many ifs in this scenario. Its hard to tell how much is going to come out of it in terms of actual cash. In here . Do they gam there is an interest in certain bits. Not the whole thing, which is what he have this complex structure. It is not entirely clear what it is worth. It is not entirely clear what the trading business is worth. Therefore there are a lot of question marks around the. Aluation it helped cement its position as a World Class Oil trader. Ciscos m a spree continues. It snapped up rod soft in a deal at 1. 9 billion, expanding ciscos presence in software and the cloud, a huge priority for the company. Talk us to the terms of the deal and what stands out. It is a reasonably large premium. If you look at its price back in august, it was about 20 premium which is a fairly healthy one for the sector right now. It is not a huge deal by cisco standards, but for them it is the 200th takeover in the history, a phenomenal number. We usually see cisco do smaller private market deals. This is slightly unusual and as much as it is public. It was a reasonably competitive process. There were other people interested in the asset and that in some ways is reflected in a decent premium cisco ended up paying. Apples iphone x hit stores next week, but in the report of supply struggles is clouding the rollout according to japans nikkei. Initial shipments will only be around half of what was expected this year after it has been battling technical issues that involves the models new facial recognition feature. There has been news, we heard about the first problems with the display technology about a year ago, but we dug into the story about the 3d sensor. That is the biggest bottleneck right now. That cant get enough components. Coincidentally at the same time our story went out, they had the people making the modules that go into the phone. They admitted it would cause supply constraints. There is increasing concerns heading into the quarter that they would be slightly worse sales than expected on a launch quarter. Carlyle announced a secession plan. Glenn young kim and lee will become coceos january 1. Founders David Rubenstein, who hosts the David Rubenstein show, and his partner bill conway will become coexecutive chairman. What will this mean for carlyle . What is interesting is you have this pair of guys, one of whom has been at the firm his entire adult life. He joined in the mid1990s and has seen the growth of carlyle since its inception in the late 1980s. Lee is a bit of a rare bird. He did most of his work at a another firm. He joined carlyle a few years ago. Having this inside outside balance is interesting. Indias state run banks, the government pledged to inject 32 billion of capital into the lenders. The capital boost catching everybody by surprise, but really making a headline. The decision to increase the capital efficient target by tenfold has caught almost everybody by surprise. They have already said it is a positive move. Equity markets are also cheering this move. This will help banks clear up the bad loans. Indian banks are settled with one of the highest rates among all the economies. This will help them clear the Balance Sheet and add more loans in this economy, which will help in reviving both economy and the bank systems profitability in the next couple of years. The sec says firms can accept Research Payments from eu clients. The u. S. Regulator gave a 30 month reprieve to u. S. Firms on the Research Tools coming into effect in january. This is basically what wall street brokerages have been pushing for in washington. They got the sec, wall streets main regulator, to step in and tell them they are able to accept Research Payments as will be required under european rules for the european clients, and they will not have to register as investment advisors. If they had to take on that label, it would basically heap on a bunch of additional requirements and it could be costly. They basically did not want to do that. They are getting a reprieve today and ensure a lot of big and im sure a lot of big brokerages are happy. What happens to it half years what happens to him a half years from now, we dont know. Basically we will have to see. Vonnie President Trump is leaning toward appointing Jerome Powell to be the next chairman of the fed. This according to three people familiar with the matter. We will hear for definite before november 3 according to the president himself leaving for asia that day. What would he bring to the fed that janet yellen hasnt got . Or that john taylor might bring . It is interesting the way you put that. What would he bring that janet yellen hasnt brought . Probably nothing. He is not an economist, so he will be basically following the policies that were set in place, and then be influenced by the staff or by anybody who is appointed as vice chair or who would replace yellen if she decides to leave the board. Remember, she can stay on if she wants. Probably, you would see it as yellenlight. Powell keeps wall street on the same course. He is not likely to deviate. That makes people happy in and maybe that is what trump is thinking. David welcome back to bloomberg best. Im david gura. Goldman sachs president David Solomon sees Great Potential in his firm to expand their business in europe. He discussed those opportunities in detail with my colleague, alix steel. David there are places we can add market share and one of the things you know from when you talk to harvey about our Growth Initiatives is that a portion of our Growth Initiative is focused on places where we see market share opportunities in equities, or where we see client gaps in places where by adding market resources, we can influence market share. Yes, we have strong market share across europe and all of our businesses. We have good market share in sales and trading equity business and Investment Management business. But there are places we can actually invest and improve our market share and position. As an organization and Leadership Group across the organization, we are focused on making those investments and making sure we are creating growth opportunities. It is not just in equities. It is in banking, too. One of the things in banking we have looked at is that we have broad market share and abroad footprint, but there are places where we can grow that footprint. As market cap expends, there are more companies that mightve been under the radar screen that are some really a billiondollar tech companies. We are looking at our footprint there and our Investment Management business. We invest in that business and private wealth business and there are good areas for us to grow our market. Alix you brought up lending. You unveiled this good plan and it seems you are focused on that. Analysts are looking for how they judge it. If i am a Market Participant and i look at goldman and say, are you delivering on your promises, in terms of your lending business and growing it, what do i look at . David there are Different Things you can look at. If you step back and think about our lending business, it is a broad term and touches a lot of activities we engage in with our clients. On one hand, we have made a push over the last three years to broaden our Debt Capital Markets s capability and we improved our market share. In fact, if you look at our performance, are ninemonth debt capital underwriting activity is a record for the firm. That comes with the focus over a period of time. We have corporate clients making acquisitions. We are looking to purchase companies in the market. We are committing capital and lending into them to support that business. Alix that means revenue. David revenue is a metric. One of the things i know you are aware of is that we have started over the last year, we launched about a year ago a consumer platform. It is a new area of expansion for us. Markets by Goldman Sachs. This is a business where customers who have Credit Card Debt can manage that debt more effectively with a fixed rate, nofee loan. We are excited about the product. We have been rolling that product out. We are in the early stage. We are on track to have 200 in thaton of loans business this year, but that is a business that will be a nice conservation to the firm. There will be more as the business progresses. David coming up on bloomberg best, you want earnings reports . Weve got earnings reports. Look back at the beats and misses of a very busy week. Plus, conversations with a starstudded conference in saudi arabia. Plenty of insight just ahead. I look at 2017, 2018 very differently than how we received 2007, 2008, 2009. David this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. I think the boj will be importing some reflation from the rest of the world in the next year, and that will help them as they comfortably stay on hold with their yield control target as it is. How do you see boj policy adapting to what has been a growing economy . Six straight quarters of growth. Slight growth. Inflation is stubbornly low at. 7 . Well, i think that is the point. We can see there is a very difficult process in using growth as a tool to get out of the deflationary psychology japan has been in. If we are right, we are going to be sitting here a year from now with core inflation below 1 . The boj is looking for it to get to 2 not long after that, and that will be a story that says the boj will have to stay here, and hold its policy stance for a long time, even in the face of what we expect to be good growth. We dont know how far it will run before you jumpstart the economy in terms of reflationary dynamics, but it seems to take more than a year even with good growth. David that was jpmorgan chief global economist bruce kasman discussing japan in an exclusive interview stephen engle. The epicenter of financial conversation this week had to be at a conference hosted by the kingdom of saudi arabia. Some of them sat down with interviews with Bloomberg Television. There are some european challenges which require european responses, like migration, security, growth, and jobs. There are national responses, which are insufficient. We need to integrate them with a higher policy. Yousef so there is more work that needs to be done to slow down the trend we are seeing . For further autonomy. These are structural problems. These are structural problems and there was a window of opportunity to do with them because the european economy is growing at a healthy rate, and there is lots of job creation. But this is not enough. We must reform our institutions and make them more flexible. Yousef lets talk about the italian economy. Growth projections for the share are at 1. 5 . Is there any chance we could see upside to that growth . Could it be stronger . It could be stronger. There are upside risks and in the coming two years. Certainly, there are in our forecast. Yousef so, by how much more do you think it could grow if you gave a rough range . If all the reforms were fully implemented and if all the resources mobilized for Public Investment were fully spent, we could certainly go up 2 . A decade ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested that the rising amount of debt could trigger the next crisis, and of course, he was spot on. Are we at that point yet with the accumulation of debt . Especially in markets that are not as visible as they used be to financial regulators . That accumulation of debt is getting to a point where we could be confronting another crisis . I look at 2017, 2018 very, very differently than how we perceived 2007, 2008, 2009. The Financial Institutions were so much more levered and so much less transparent in the 20072008 period. I would argue Financial Institutions in the u. S. Have had enormous improvement in their Balance Sheets, and we should take some comfort in that. Yes, people are using leverage and there are investors and institutions that continue to buy longterm assets with shortterm liabilities. Yes, you should scratch your head over that, but that is an institutional issue. I dont think that is a market risk as much as an investor or institutional risk. Blackstone has intentions, plans if you will, of doubling its assets in the next five years. To roughly 800 billion. And blackstone has doubled down their assets over the past five years. So, they are planning to continue on the same pace of growth even though they have become so much larger. Where does carlyle find itself in five years . I think we think our firm is in very good shape. We continue to grow. Our quality of investments will continue to be very good, but i do not have a number. It is possible blackstone will become a trillion dollar firm. Is it also possible for an alternative asset messenger an alternative asset manager to be too big . Im not sure. People thought 20 million was too big. I dont think 1 trillion is too big. I dont know what blackstone or carlyle will be five years or 10 years from now, but i dont know if it will be too big. Remember, blackrock is now 6 trillion or Something Like that under management. Who wouldve thought that Something Like that might happen when they started their firm in 1988 or 1989. It is hard to say. But in principle . We are very ambitious and we think we can do a good job for our investors. Im sure blackstone will do a very the job for their investors, but we dont have any limits. David not every wall street superstar was in there this week. Ray dalio paid a visit to bloomberg surveillance and shared his insights on the market and economy. Ray from 2008 until 2017, we were in a certain type of environment. In that environment, it was one in which there was the pushing of Interest Rates down to the point of creating negative Interest Rates, and with a positive carry by doing quantitative easing to push money into the system. 2017 is the transition of an ending of all of that all around the world. We are entering a new era in which there is going to be, and there is the raising of Interest Rates, and the reducing of quantitative easing. That action that they took in that produce significantly bad real Interest Rates. 10 year real Interest Rates are about. 5 . Next to nothing. Next to nothing. And the brief even inflation breakeven rate for the 10 year is about 10. 8 . Those numbers are low because of repression in order to get the economy to do that. We are now and a transition. A whole different environment. That is the equivalent of the late stage of a cycle. That is when it is a tightening. Tightening has become progressively more concerning because as you move along, there they are more and more difficult to get perfect. How much does personality matter at the Federal Reserve . What does the next fed chair need to focus on when it comes to the health of the economy . Ray it can matter a lot. We have the pace at which from fed policy, the pace at which there is an unwinding of the Balance Sheet. I look at those numbers, and i dont think they will be able to continue at that pace because it is equivalent of Something Like 2. 5 of gdp. If you have that happening at the same time as increasing budget deficits, we could have an increase of another 1. 5 of gdp. That is a big number in the supply demand of bonds. Think about that. Ok, there will be that amount of effective selling of credit by the Federal Reserve. Tom are you predicting with the tax reform opposed as douglas keegan talks about, going to 5. 6 or 7 gdp . Ray we will almost certainly have a significant move in that direction. So, you can even see it in the market action. In other words, on days where it looks like they are making more progress, days they are making less progress there is going to be a larger deficit which means more selling of bonds. At the same time, there is more selling of bonds by the Federal Reserve in terms of the Balance Sheet change. I think they will be cautious in this, but when you are talking about this part of the cycle, it is very delicate. David you are watching bloomberg best. Im david gura. Another week, another round of corporate earnings reports. With some silicon valleys Biggest Companies releasing results. A blowout earnings quarter for big tech. Amazon, alphabet, intel, and microsoft all beat wall street estimates. It was all of the speculation on how amazon would fare. There was a lot of anxiety on how that would go. Most about how much amazon would spend on it. So, investors i spoke with were pleased that amazon actually made some money, even though they had integration cost one time. That was an indication that he was not going to be as costly out of the gate a some of them feared. Walmart is stepping up its competition against amazon. Is there any signs it is making a dent . That was another wildcard heading into earnings. The message to investors there is walmart might be doing a lot butinnovating a lot, amazons Growth Continues to roar along strong they are predicting a very strong holiday quarter. 47 paid click growth is extraordinary for a company this gigantic, and a company that feels like it has been gigantic for years in our life. Going up against facebook and amazon, nearly 50 growth is extraordinary. It is. It is just extraordinary. As a global phenomenon. Again, the search part of our daily usage of the internet remains extraordinarily robust, even though we are spending much more time on amazon and facebook. But the core search function is seeing a 40 to 50 increase in clicks. The flipside however is that the pricing on a per click basis is down double digits. When you put that altogether, it turns out topline growth for alphabet which is extraordinary. Microsoft push into Cloudbased Software seems to be paying off. What does this say about the rest of the earnings season . Pieter microsoft has its history in the pcbased computing along with intel and other companies. It has struggled to move beyond that in a number of cases. Some of the years have an kind of rough. But this was a Strong Quarter that they showed they have shifted over to the broadbased services they have, and it signals more broadly that investors are getting some positive signs as there were concerns about evaluations of about the valuations of some of these tech companies. They are now getting data points to reassure them there is growth to go in these earnings. Baidu shares under pressure under the extended session after sales forecasts fell shy of estimates. This coming at a crucial time for the company as they attempt to alter course after a difficult 2016. Baidu is really changing direction. Smartphone penetration in china is near peak, so it has to find a new place to earn money from. It tried that with food and delivery very unsuccessfully, and now it is putting all of its eggs into Artificial Intelligence being the future. That is what it is really tried to convince shareholders to stay the course, and dont sell the shares just yet. We can actually make this into something worth doing. John ubss capital berth has rebounded in the Third Quarter while investment units soared. Do we get a buyback from ubs and 2018 . It is too early to talk about our capital return policy, but i mentioned in the past, we reached capital levels needed to fulfill regulatory requirements for 2020. Working for 2020. Capital buildup is done. And so, we are looking to continue to implement our progressive policy on our cash dividend, and eventually complement it with capital returns to share buyback, but it is too early to talk about it. Clearly, we are coming from a disappointment last quarter. I think investors were reassured to see what drove capital lower last quarter was not repeated. We have seen a reversal above expectations. Clearly at this point, that is what investors have been looking for, for the model to now deliver the higher dividends they are not getting from the banks. David General Motors released its earnings over 30 minutes no ago, and it Beat Estimates. You beat revenue and earnings per share. That is a nice story. What is the real story here . There is some softness in the vehicle market. I would say the story from our perspective was that the Third Quarter was very, very much unplanned when you look at production downtime, we had and production being down 26 . Within that, we generated solid results at an enterpriselevel, 2. 5 billion profit. In north america, 2. 1 billion and a. 3 margins, which demonstrates the resilience of the business, even in a quarter where production was down 26 . Importantly, we took a big step toward getting our dealer inventory in line as we go through the Fourth Quarter, and we now expect our dealer inventory at the end of 2017 will be lower than 2016, which will set us up for a good start in 2018. David ford announced its thirdquarter earnings, beating estimates on revenue and earnings per share. How much is topline growth and how much is cost control . Well, the vast majority of it, david, is good Cost Management and good cost control. We have had over 700 million of good news in terms of cost and a yearoveryear basis, inclusive of 300 million in commodity costs. The team did a really, really good job in terms of delivering strong cost performance. The thing that was encouraging across many aspects of cost and across other important parts of our business. We were really excited about that. And we see that as a down payment on our efforts to improve the overall fitness of the company. Jon boeing, the big performing stock on the year. It delivered some solid results as well. Epss are beat. The forecast for this year is better. What is driving it . The big concern with boeing is that, as they put their legacy plane off the market and shifted to newer production, bigger jets they were putting out, people were worried we would see a hit to cash. Whenever you launch a new plane, that requires a significant amount of upfront. There are costs involved. That is not happening, and boeing has shown significantly better cash flow than what investors were expecting. That is what is really giving people optimism. And they also increased production for their newest jet, the 787 and i think and that is making people more comfortable with the fact this Strong Aerospace cycle will continue to be strong. A big Third Quarter miss for chipotle. Eps came in at . 69, well below estimates. Hurricanes and a hacker attack took a toll on profit. Dont forget, we had the July Norovirus in virginia. That was a big part of what happened we also had the noro that is a big part of what happened. They also got it down for the Fourth Quarter now based on their four year guidance. They say the Fourth Quarter is going to drop about 1 . Part of it they are blaming on the hurricanes in florida, but that is below the 2 we were expecting. So the norovirus is having an impact and that is what we thought. It would delay the recovery moving forward. One investor getting burned by chipotle is billionaire bill ackman. He has been in the stock since september 2016. A busy, we have seen a lot of turnover in management and directional changes. He has been a part of all that. He has been working with the board to implement those changes. And i think he believes that he is affecting some change of there. Some permanent structural changes that will improve the direction of the company. The party reported earnings that Beat Estimates. The company also reconfirmed its outlets since 2017. Profitability has risen for the first time in almost three years. What went right for you in the quarter, joe . Joe i feel good about the quarter. Contributed to the growth. Our innovative medicines divisions we have a couple of new drugs that are firing on all cylinders and generating good growth. Our generics business, despite competitive and pricing pressures in the u. S. , also grew on the Constant Currency basis. But i think the best part about the quarter is that our outcome business grew 7 and profit almost 20 . I feel really good about where we are as a company. We are positioned as a focused company. We have a strong pipeline for the future. David eli lilly reported its thirdquarter earnings. They Beat Estimates on both earnings per share and revenue. And also ticking up its forecast of earnings for the rest of the year. The performance of q3 was very strong driven by new products. And that is really the story, top line growth at 9 , driving 19 bottom line growth. We kept productivity in place and only Group Operating expenses 3 . So, this is a story about our pipeline launching. Now products launched in 2017 are more than 20 of our revenue base and growing rapidly. That is giving us tremendous Financial Performance in q3 and being able to reinvest in the next wave of innovation and deliver value to the shareholders. David big oil dealt with thirdquarter earnings. Exxon mobil topping estimates and edging higher, while chevron posted a miss and cut their guidance. Most of the majors had a dark time in september. Cutting cap x, jettisoning their nonperforming assets and turning back towards giving shareholders value by delivering profitability and not increasing production at a breakneck pace. One of those is exxon. They killed it on numbers but they are also increasing capex, which is against the trend of what is going on compared to exxon and everybody else. France total says the balance between crude, supply and demand is finally dissipating as opposed to the highest earnings from pumping oil and gas in two years. Meanwhile, italy officials says production will rise to a sevenyear high later this year. No one is excited by the actual numbers. But there is a much bigger story performing. They are reaping the rewards of fairly conservative else sheets, cutting back on spending, firing people, delaying projects, and that is now feeding through to the bottom line. It is too early to say for sure, but vaping may be the breath of fresh air smokers have been looking for. David 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 the latest Business News and analysis 24 hours a day. That will be all for bloomberg best this week. Thank you for watching. Im david gura. This is bloomberg. From our studios in new york city, this is charlie rose. Charlie we begin this evening with a focus on the opioid addiction problem. It claims over 100 lives daily. Today, President Trump declared the situation a Public Health emergency. In a speech alongside families affected, the president called it the worst drug crisis in american history. Pres. Trump my administration is officially declaring the opa
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