The war of the rich on the poor is astounding. Not everything in here is a bad idea. Ramy it is all straight ahead on bloomberg best. Ramy hello and welcome. I am ramy inocencio, and this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. The week began with a political crisis in a european nation that has been a rare model of political and economic stability. German chancellor Angela Merkels negotiations to form a Coalition Government suddenly collapsed on monday. Matt chancellor Angela Merkel attempts to form a new government. Those have collapsed with the Free DemocraticParty Walking out of Coalition Talks last night. The breakdown of discussions throws the future of her fourth term into doubt and raises the possibility of new elections in germany, something which would be completely uncharted territory in the postwar period. As acting chancellor, merkel says she will consult with the countrys president later today. Ms. Merkel it is a day of deep reflection of how to move forward in germany, we will do Everything Possible as transitional chancellor to ensure this country will be well led through these difficult week. Matt what exactly happened that brought these, at the final moment, to a collapse . Rainer it was clear at the end that the whole package of things that they have negotiated was not good enough for the ftp. Immigration was a sticking point. They could not get their solidarity to charge through. Looking at the whole package, they decided it was not good enough. Matt we are seeing the euro gain against the isnt this bad dollar. News for europe . Marc the markets are telling us this is a local issue that will be quickly resolved, and that means without much fanfare. This is important because right now, the key to europe and brexit talks and further progress of integration hinges on strong german leadership. Emily the u. S. Justice department is suing to block at ts 85. 4 billion takeover of time warner. This deals a major blow to the carriers bid to create a media and telecommunications empire. Randall the bottom line is we cannot and will not be party to any agreement that would even give the perception of compromising the First Amendment protections of the press. Any agreement that results in us forfeiting control of cnn, whether directly or indirectly, is a nonstarter. Jennifer it is unprecedented. It is very odd coming out of the Republican Administration generally considered friendly to vertical deals, friendly to big business and mergers. We have no example. This went to that court was 1979 and the department of justice lost. David the department of justice will have to demonstrate that consumers will be harmed. There are a lot of things in the complaint that would raise concerns for competitors of at t, the question is, will consumers be harmed . I think the doj has a daunting case a daunting battle in front , of them. Kevin the white house trying to signal this is not anything to do with politics, despite the president s complete assertion against cnn. That said, i can tell you that the department of justice has largely taken a cautious approach, and everyone is weighing in, including mark cuban. He has suggested that when it goes to trial, it will ultimately the bad news for facebook, google, and silicon valley. The argument being that the vertical merger is a signal for them to play with tech titans. Mark the u. K. Government says Economic Outlook is getting worse. The chancellor issued a warning as he delivered a speech in parliament today. Mr. Hammond we have already invested almost 700 Million Pounds in brexit preparations. And today, i am setting aside over the next two years another 3 billion pounds, and i stand ready to allocate further funds when and if needed. Speaker, no one should doubt our results. Anna he gives us 3 billion pounds to deal with exit uncertainties. Is this to deal with the situation of no deal . Is that what the 3 billion is for . Because chancellor hammond had said previously he did not want to set aside money for a no deal scenario. Ms. Truss weve already allocated 700 million to prepare for all eventualities, and that includes no deal. It also includes the preferred option of a transition period plus free trade deal. Thats what the 3 billion is for. Money we will need to spend to get ready for leaving the European Union. In fact, quite a lot of things we would need to do in a no deal scenario, we would still need to do in a deal scenario. Period. A transition it is right that we make the preparations, and i think people will expect the government to stay on top of that. Haidi janet yellen isnt the only fed official expressing more doubt when it comes to inflation moving higher. The minutes of the november meeting show a deeper than ever divide between policymakers. Kathleen the november minutes are interesting, it has a lot to do with the words the fed uses, many, that is more than half, a strong consensus. They are ready to hike. But again, the division over inflation puts the rate hike is march in question and the pace of hikes next year. We saw that discussion as well. A few, that is not even half, but probably a few significant doves said inflation has to be rising on a sustainable path toward inflation before they will look for a rate hike, and they say the fed will have to monitor inflation developments closely. This data dependent fed. Overall, a lot of consensus on the economy doing better, but there is deepening concern over inflation, which is not playing along. Jonathan the ecb has released minutes of its october Monetary Policy meeting and they are learning that officials expressed concern about a firm date for the end of quantitative easing. Have we learned a little more about the divide the currently dominates the council . Jana a few things here and there. At the last meeting in october, when they decided to extend quantitative easing but at a slower pace, they did discuss how they want to implement that, first of all. They also discussed how they can change policy guidance, or whether they should shift policy guidance, because at the moment, progress on inflation is very much linked to asset purchases. Now, of course, if the ecb decides to end that program at some point next year, that will have to change, and that is what they discussed. Jonathan days after talks collapsed around Coalition Talks with german chancellor Angela Merkel, they may be coming to her rescue. The social Democratic Party said it is open to discuss a government led by Angela Merkel. Support could offer a way to restore political stability. How close are we to breaking the political deadlock in germany . Tony well, jon, the speculation is growing, of course with this move today, that Angela Merkel and Opposition LeaderMartin Schulz will meet, it is pointing us toward a rerun of the government germany just had for four years. The social democrats are still very much hedging their words, but then of course there is the overarching issue of german stability, and there will be appeals to that in the days going forward. Abigail it is black friday. Everybody is focusing on retail sales. Spending is very strong, off to a good start. In fact, by 5 00 p. M. Yesterday, up 17 yearoveryear according to adobe analytics. Black friday actually began yesterday. What response have you seen from shoppers so far . Jeff a strong start to the fourth quarter, and yesterday during black friday, we saw that. It started well online and we opened our stores at 5 00. Last night, in a lot of our stores, it is tracking quite well. One of our hallmarks is the ability to transact online, on a mobile device and instore. Black friday is a national pilgrimage, and having great value but also being where shopping is happening in stores. 70 of america shops during the black friday window. Not all of your stores are like harold square. You have been closing some stores. You still have a fleet of about 600. The ceo said if macys was starting again, the magic number would be more like 245, it was said. Could we expect more closures . Jeff we announced we were close 100 stores. We have closed 70, so there are more 30 more to go. , there might be properties here and there we will be closing, but we serve nationally as a macys brand. The interplay between the Online Business and bricks business is really important. Our calling card a\is we are a national on the channel retailer, and that is important. Expect us to weigh that very carefully. Ramy still ahead as we review the week on bloomberg best, a bold call on bitcoin. Plus, thoughts on the gop tax reform bill from paul krugman, among others. Up next, more headlines. A chinese automaker aims to bring its brand to the u. S. Market. Feng at the current stage, our internalization process is just taken off. Ramy this is bloomberg. Ramy this is bloomberg best. Im ramy inocencio. Lets continue our global tour of this weeks top business stories. Next, in the United States heartland and another chapter in a controversial saga with the keystone pipeline. Julia transcanada has cleared one of the last hurdles for building the keystone xl pipeline. Shares of transcanada rising on the news and has given that nebraska has been given permission to build across the street. Nebraskas Public ServiceCommission Approved an alternative route for the pipeline, throwing some degree of uncertainty into the mix. Tina the commission did not get exactly what they wanted. What the commission did get is a proven alternative to what the company had proposed, that there were three alternatives that they were looking at. And this is one of the ones that i want to continue with the project. Is the alternative going to make a economic going forward. Rachel it is certainly a good first step or a good next step in our goal of getting more Energy Infrastructure to be able to ship our products more efficiently, less expensively, and more safely. Tom we do not need that energy, that will turn out to be an incredibly stupid decision, whereas we should be spending our time creating good paying jobs all across america. In every single rural and urban community to build the kind of sustainable infrastructure that will let our country be healthier and richer. So this kind of decision that will lead to the oldfashioned kind of pollution is incredibly shortsighted and just plain dumb. Emily uber covered up a massive hack attack covering up 57 million accounts. In hackers stole the personal 2016, data of 15 million customers and 7 million drivers. Uber, including travis kalanick, kept the breach concealed for a year rather than report it. Rather than report it, uber paid the hackers 100,000 to delete the information. Eric it is so crazy. More than a year ago, uber heard from the hackers the day it found a way to get information, names, telephone numbers, that sort of information on 50 million riders. And then information on 7 million drivers. Most importantly, drivers license numbers for 600,000 drivers. The concern here is that is information that uber was required to disclose and did not. So now, more than a year later with a new ceo, dara khosrowshahi, the company is deciding to come forward and say here is what happened. Betty toshiba planning to raise money for its assets to avoid being delisted from the tokyo stock exchange. They are raising more money. What kind of pressure is toshiba facing over this delisting . Peter well, toshiba has been in trouble for a while because of the Nuclear Assets in the u. S. This is the westinghouse business that it bought a few years back. They had a very troubled foray into this business. A multibilliondollar losses. Because of that, theyve had to raise capital. Right now, the shareholders equity is negative, and they need to move that back in a positive territory by the end of the fiscal year, which is this upcoming march. They are in a process selling the chips business. They have a tentative agreement to do that. But now they are saying that the Regulatory Approvals may take longer than that date. So they want to raise capital separately from that, so they go through the process of raising, as you say, about 5. 5 billion to be able to fill that. David looking to build itself, Marvell Technology doing so by buying a rival. The company will pay about 6 billion in cash and shares how much of this is triggered by what we have seen with the broadcom deal . Ed there was a lot of consolidation in the semi space. This deal is different in terms of putting too Semi Conductor companies together. You have on the one side marvell, who makes chips for , hard drives. And on the other side, cavium, which is networking processes, is much faster growth and it will take marvell into a different direction than what has specialized in a traditionally. Yvonne guangzhou asking Fiat Chrysler to deepen the tie to try to relax some regulations. Speaking exclusively to our china correspondent, the president said the company is poised to enter the u. S. Market. Feng at the current stage, the internationalization process has just taken off. We have laid down all of the groundwork and carried forward our car sales and Service Options in 14 different overseas countries this year. Entering the u. S. Market will be a huge breakthrough for guangzhou. Tim there are cars manufactured in china and sold in the u. S. Volvo does it, gm does it as well. If they succeed to do that in 2019, it would be the guangzhou brand. Branding will be crucial, of course. Possibly, they may have to theye the name, a name came up with about a decade ago. Downnet yellen will step upon the confirmation of the new fed chair. This is not unexpected. Michael it is not unexpected, but it was not out of the question because Janet Yellens term on the fed as a governor runs until 2024. So she could stay on. It has been done once before. But today, janet yellen is making it official. She has submitted the letter of resignation effective on her successors swearingin. What it does do is put pressure on the administration to try to hurry up and name some additional fed governors. A lot of work to be done. Lets talk about this, one of opes Biggest Airlines revenue for the full year, bang and line with what analysts estimated. 5. 01, and this is a very fluid changing landscape. Got the have dissipation of monarch and air berlin, theyve got a busted flush going through for them. Carolyn you can see in the statement weve made today, that the Forward Momentum is strong, the is looking extremely first half positive. And that is a direct result of the dislocations in the market. Out of softas come one, they have taken some capacity out as well. We have benefited from air berlin. ,n fact, parts of air berlin parts of consolidation. It is very good news for easyjet, and weve come in at the top end of guidance. And the forward outlook is good. Scarlet the hpe shares after the company said it that after february 1, we will see meg whitman step down and be replaced by antonio neri. Whitman tried to do is try to split the business, spent billions and billions in acquisitions and it is not working. She hasnt been able to turn that trend around. Despite using all the strength of the Balance Sheet and reorganizing these businesses. The onetime restructuring charges for this company was over a week right now. 10 million 100 million in this quarter alone here. I think when we look at what going on, its not so much that shes getting pushed out. Shes not delivering the results that she had hoped to four r hewlettpackard and hewlettpackard enterprise. Joe more rollbacks of obama era policy. The fcc chairman announcing plans to overturn Net Neutrality rules, calling the measure imposed, heavyhanded, utility style regulations. Practically, what would we see as ramifications from the fcc and rolling back these rules . Matthew as a practical matter, i dont think, in the shortterm term, you will see changes. In the longterm, what you have the possibility to see is changes in how Internet Service providers operate. Currently, there are three rules is it bars them from prioritizing traffic. This fcc is talking about wiping away all those rules. They said dont want to do that, but this would allow them to do that if they wanted to do it in the long term. Ramy welcome back to bloomberg best. I am ramy inocencio. Bitcoin began the week on a roll, hitting a new alltime high on monday. But then safety concerns dragged on cryptocurrencies after tether, the Company Behind another digital currency, suffered a hack. How can investors keep these swings in perspective . Mike novogratz is starting his own cryptocurrency hedge fund. He discussed the principles and practicalities of the market on bloombergs daybreak americas. Mike this whole revolution came out of a breakdown in trust. You know, it came out of the financial crisis where people said we no longer trust , Financial Institutions or governments. And in parts of the world, it is hard to trust central bank. So the decentralized revolution that bitcoin is the poster child of, its a response to the breakdown of trust. David is it an investment, or is it a trade . I ask because overnight there was a cryptocurrency i never heard of, called tether. And it there was some theft of that and it drove bitcoin down. It has come back since. But there seems to be an awful lot of volatility. Mike were in the second or third inning of this revolution. These are very young experiments. Each of t