Was 10 years ago or 20 years ago. Many of the problems they face are more like the problems of an airline. Most stupid statement of energy i have ever heard. Plus, a look at north koreas energy economy. It is all straight ahead on bloomberg best. Scarlet hello and welcome. This is bloomberg best, your weekly review of the most important business news, analysis and interviews. Our day by day look at the weeks top headlines begin with begins with a shakeup in saudi arabias cabinet that could have major implications for the global oil market. Saudi arabia appointing a new oil minister over the weekend. The chairman of the state oil company replacing who has held the post for two decades. I guess the question for the market is whether anything has changed in terms of policy coming out of saudi arabia. Has it . I think if anything it is probably more policy. He was the architect of the agreement in 2014 to abandon the support of High Oil Prices and go for market share. His public his successor is probably very similar to naimi but the rhetoric will be more various very in line with the prince mohammed. They have both been saying that what saudi arabia needs to do is protect market share is not going to freeze or reduce productions unless other big producers agree to do so. I think were going to continue to see very high saudi oil production, going forward. What does this tell us about the possibility of a real deal coming out of opec . I think what it tells us it is were not going to have a deal on opec, the second meeting in vienna. The deputy crown prince has been adamant that he does not care about High Oil Prices. He wants supply and demand to dictate the price. He wants production to remain high. Opec in three weeks in vienna, we are not going to have any agreement to restrain production. Switzerlands secondbiggest Bank Credit Suisse reporting to a loss. Shares up today. The loss wasnt as large is as estimated and the chief executive says he is confident hed be able to deliver planned job in cost cuts this year. Is there anything that analysts should worry about and what we found out today . The worry is it is going to be more of a slog. I think they were projecting confidence in their plan because they had to change the plan back in march. So, i think they wanted to project that this was, theyre back on track. Its just going to be more of the cutting story, but a slog is better than a surprise, which is what you got a couple months ago. Tom who will they end up merging with . Is there a list of banks you talk about in london . Who is going to put them out of their misery . He even said today they are not going to be merging with Deutsche Bank. You know, the problem is they are shrinking the investment bank. They are trying to build up and wealth management. Its tough, they are having enough trouble with their own getting their own ship in order. To have a merger on top of that would certainly complicate things. So, i think theyre more focused on showing some progress after a couple missteps with their turnaround. Today could be the last day in office for president dilma rousseff. Brazils senate is scheduled to hold a vote. As the impeachment has looked more likely, more investors have poured into brazilian investments. It is somewhat of a counterintuitive point. Brazilian local depth is local debt is up 30 this year. Investors are betting we have had five months of uncertainty. Lets get this behind us. Lets move on. How many more hours do we have to go on until it vote until the vote takes place . The process is moving slowly. Shocker. Surprisingly. Started at 10 00 a. M. There are 70 senators scheduled to speak. We are right now on senator 20. Still a long way to go into we get to the vote. Until we get to the vote will stop vote. Now we have the final votes. 55 are in favor of impeaching president rousseff. So, she will not be going back to her office today. There has been a majority of senators saying that they are backing impeachment. That vote has now been placed. They just need a simple majority of 41 senators. We have 55 senators that they voted for the rousseff impeachment. This paves the way for president for Vice President mr. Temer. She has merely been suspended. This goes to the full trial in the senate, but she she is now off the stage. And it is difficult to see now how she comes back onto the stage. She is now basically off the stage. Mark Vice President michel temer is inheriting the worst economy brazil has seen in decades and has Just Announced he will name Enrique Morales as the new finance minister. Can you give us further details of the appointment we have heard . He has announced almost the entire cabinet. Showing a big cut in the number of ministries. Brazil had 30 ministries. And now it is a little over 20. Mereilles being the main one. It is in line with what we have seen in the past week or so. Vonnie what we know about the what do we know about the finance minister . A harvard graduate and a kkr person. He was the longestserving Central Bank President we had. Very respected. He has already made some statements that he will try to stabilize the debt, and that is the most important thing, stabilizing the debt trajectory and make sure everyone knows brazil can pay its debts. And getting us growing again gradually. , jonathan a Rate Decision that many people expect to remain unchanged. That decision unchanged. The bank of England Holding at 0. 5 . Voting 90 to keep rates there. Mark interesting, interesting. The bank of england voting 9nil. Bank of America Merrill lynch said they couldve had a cut that didnt happen. The fourth consecutive period. Its cut its growth forecasted it lowered its 2016 gdp forecast to 2. 2 . 2. 2 . 2 from that has been a great surprise. The economy is clearly slurring ahead of the referendum. The bank of england has a tricky judgment call the economy is clearly slowing. What the economy would do if they would vote against staying in the e. U. The mpc cant duck it. He tried very well, triple on trip along that delicate knife edge, and people criticized him for using words rather than numbers. But the numbers are pretty obvious and he ended up basically admitting that brexit would probably trigger recession. A ride sharing app has received a strategic investment from apple. Alibaba is also an investor in didi which operations 400 cities in china. This is a huge deal. We have reported earlier that didi was looking to raise 2 billion. That is what our sources told us. Apple making didis single largest deal investment ever. That comes as a huge surprise for us. This came out of left field. Why does apple want didi . Their sales are slowing. There are worries about the chinese consumer. They have come under a lot of regulatory issues as well. Ibooks and imovies were shut down with tightening of search policies. This might be a way for tim cook to get a better idea of the landscape in china. It is very much a strategic investment. Apple and didi can work together. Also, this could be helping some of the automotive goals of apple. They have been hiring automotive experts and maybe working on a selfdriving car. This makes sense on a couple fronts. Number one it allows apple pay to spread throughout china. It does build goodwill with the chinese government. Think of all the cash apple has overseas that they cannot bring back to the u. S. , including china since they generated 58 billion in revenue last year. Scarlet we will go back to Global Politics later. A controversial candidate claims a president ial victory in the philippines. T Boone Pickens shares his opinion of Hillary Clintons energy platform. Up next, highlights from the weeks top company news from dollars to doughnuts. Scarlet this is bloomberg best. Im scarlet fu. Lets continue our top business story starting with the resignation that rocked the online financial sector. Lending club founder and ceo granola plunge has resigned after an internal review to determine the companys Business Practices were violated. Stock is extending its drop since the companys ipo to 65 . There are two things that happened. One of them as he failed to is he failed to disclose personal investment in the fund. He had a 2 interest in a fund that lending club also has invested in. It was his responsibility to show he was part of that as well. That was number one. Number two was that he helped create 22 million of loans which we found that was to jeffries and a lot of the criteria is of the loans were not met. Jeffries eventually sold back those loans to lending club and resold them again. One of europes wealthiest families is branching out from coffee to donuts. The Holding Company for the ryman family of austria has agreed to buy Krispy Kreme Doughnuts for 1. 4 billion. What does this Holding Company want in krispy kreme right out . They must think there is some opportunity to grow sales of coffee. Krispy kreme has had trouble over the last couple years increasing their beverage attachment rate. But they do have very high Brand Awareness for such a small chain. And jab must see some pretty good potential there to be able to grow that coffee size business. We are seeing a lot of Companies Like krispy kreme shifting toward beverages. Has krispy kreme been trying to do that, and how successful have they been . It is a higher margin. They have struggled. Part of it is the location. Whereas Dunkin Donuts and starbucks have a convenience model and they want to be in every corner. Krispy kreme is more of a destination model. That may be some of the issue with what they have in terms of increasing the beverage attachment rate. Shares of office depot and staples feeling a little bit like that picture there. Dead gloomy. Two stocks plunging in premarket trading. The companys called off their planned merger following a ruling by a federal judge. Did they not see this coming . I think they probably did. I think we can say that for two reasons. One was very low growth. The regulators have come out, the fcc, the judgment has gone against them. The other thing that was key is that the spread on this deal was so side, plus 50 going into yesterday. So the market was giving it fairly low chance of getting it done. Jonathan where do these two companies go . They do not go anywhere. There is not another deal for them to do. This industry is at maximum consolidation. We saw a similar situation in telco. But the regulators made it clear if they tried to do it, they would smash them. It is the same thing here. There are no big deals left. They have to continue as they are. Experience in some connection issues. His expansion plans in europe. E. U. Regulators rejecting or blocking the deal that would have seen ck hutch buy 02. They would merge that would with three. It would create the uks biggest mobile carrier which they say may hinder competition, reduced choices and lead to higher prices. Ck hutch not surprisingly expressed his disappointment. Looking at options, including a legal challenge. Looking at wind in italy as well. It does not bode well. A deal similar to what we see in this 02 deal. They want to combine threes italia assets with wind telecom. The difference is the Italian Government has said before that it will not oppose this merger. Nissan has agreed to buy a 34 stake in Mitsubishi Motors. 2. 2 billion of shares will be sold by the scandal hit company. s ceons ceo nissan says the deal is a winwin. Im confident that with good due diligence, we would have a much clearer assessment about the risk. But at the same time we are doing the due diligence, we are also going to deal into the issues, because obviously there are risks but there are also a lot of opportunities. Francine carlos ghosn led renaults rescue of nissan. There has been a lot of confidence shown in ghosn. He has a great track record in combining traditional japanese companies, which nissan really was. He was able to turn the company around in a matter of years and bring them to where they are today. So there is a lot of confidence he can work the same kind of deal with Mitsubishi Motors. Francine what does nissan see in Mitsubishi Motors that it likes . They have a tie up to supply nissan with mini vehicles that with many vehicles that sell in japan. At the same time, litigation Mitsubishi Motors has great sales and china and indonesia in thailand and indonesia. There is good electric field Goal TechnologyMitsubishi Motors has pioneered. Jonathan bayer expected to be expiring a potential bid for monsanto. At one point, monsanto went after syngenta. Then they missed out. Chem china came in. Now with that the prospect of now we have the prospect of this. How does this happen . What we have here is what monsanto, not once but twice, at least. Both times it looked like it was getting quite close. They were offering, they were talking price. Both times, eventually we do not want to do this deal. Quite enough for the last talks broke down. Syngenta sold itself to chem china. Monsanto, their currency was quite weak. So, they were left out of the mix. Quite annoyed about it. They have come out more recently and said we are going to be just fine. It sounds like bayer is taking a look at them and they thought this is the right time to do it. One big question is what monsanto thinks of all that. Are there any early indications of how open they might be to a deal . Certainly how they behave throughout the syngenta process they see themselves as an , acquirer and not a target. Unless there is a substantial premium offered, in a consideration that their shareholders like, it is unlikely they would rush to sell themselves. It was the biggest Insider Trading case in the u. K. Today, a former Deutsche Bank broker was sentenced to 4. 5 years for the crime. Can you just explain for us in very straightforward terms what it is that happened . I can. So, today was the culmination of eight and a half years of investigation. They arrested seven men. In a series of dawn raids. They are alleged to have made 10 million together in stocks including skye, scottish and newcastle. Today is the culmination of that. Mark what does this mean for the regulator . I think it is a significant result for the regulator. This was a wider investigation, and they now have five out of eight, five convictions out of eight individuals at that were that were charged. They are started prosecuting Insider Trading in 2009. It is a short time they have managed to grow quite a profile in that they have 30 convictions overall. Scarlet you are watching bloomberg best. It was another busy week for earnings with Companies Like disney, toyota and elegant toyota reporting. Here is a review of the big beats and major misses. Disney is disappointing after the bell yesterday. Those results fell short of expectations. The company is trading down and down in the premarket and we are looking for unlikely to open sharply lower today. You have been negative on disney, you were not surprised. We started the hashtag save the force. The reality is, think one of the reasons that disney has rallied in recent weeks has been the incredible string of box office success. I have never seen anything like it in the history of the movie business. Which is a worse place you want to make money because it is so unpredictable. I dont not know if it is en unpredictable as much as it is not repeatable. No one watching bloomberg should be investing purely on the belief that movie success is sustainable. The reality is 50 of disney comes from its cable network. The sell rating was premised from the very beginning on the belief that the tide on media is flowing out. There will not be winners as that tide goes out. More people decide to cut the cord or neverthe subscribe to the multichannel bundle. That hurts everybody, and disney has the largest cost exposure in the industry. Francine toyota missed fourthquarter estimates and has forecast its first profit loss in five years. Net earnings could fall by 35 . Toyota saying its annual income will probably decline due to yen strength. Is it the only company saying such a thing . It is the first big one that is making the yen argument. We expect will be hearing from others we will be hearing from others. Other exporters are going to be in the same situation. Toyota is suffering from a few other things. U. S. Demand has stalled and they did have a few disruptions, including the earthquake that affected their production as well. But it is mostly the yen. Francine do we expect to see other effects of the stronger yen . Yes. Toyota is not the only one in this situation. Mark allergan is getting its own injection. Shares are up on news that the botox maker said it plans to buy back as much as 10 billion in stock after the Company Completed sale of its generic business to tether pharmaceuticals. Shares of allegan have declined 30 since pfizer walked away from the proposed takeover. Why buybacks instead of another merger . Allergan has been one of the most prolific acquirers out there. They have done deal after deal after deal to get to be one of the pharmaceutical giants. I think they are probably taking a pause. They had levered up substantially. They are continuing to pay down debt. I think they are also going to say we need to focus on the company. This has been a ton of growth through m a that they have done. It is an opportunity for them to take some of the cash and i think theyve probably looked around the landscape inside the best thing to buy is our own stock. There is a limit to how big you can get through deals, unless you are taken out by somebody like pfizer. Mark could they be taken up by somebody else . The fact they were willing to do the pfizer deal at one point suggests that maybe they would be again. At the same time, they are now also so large the potential acquirer has to be truly massive. Pfizer was one of the only compa