There is so much opportunity. Every region for us was up this quarter. We will make sure our sheet is absolutely bulletproof. Matt some of the world sharpest minds share cutting edge insights on the market. Negative Interest Rate set up all kinds of incentives. A low return world. The three most important words to remember. Matt plus, carson block reveals his latest short selling target. We think there is a chance it is about to lose half its revenue. Matt it is also the head on bloomberg best. Matt hello, welcome. I am matt miller. This is bloomberg best. It is your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. Throughout the week, investor attention focused firmly on friday, awaiting janet yellen s speech at the jackson hole economic symposium. But on monday, comments from the vice chair caused a stir. Stanley fischer signaled that a rate hike is still on the table for 2016. Speaking in colorado, he said we are close to the targets. , looking ahead i expect gdp growth to pick up as we recover from the surprisingly weak dollarnd the past diminishes. What do you hear . I described this as less of an aggressive hawk and a slightly more ill tempered dove. Do you think the rate hike is on the table . Without question, they should be considering a rate hike. The Economic Conditions in the u. S. Without question war rant one. How can the Global Economy cope with this . This is something that the fed has not looked at it they are much more intuitive. Would a rate hike make a difference to the binge we have seen in credit markets . We look across markets whether it is credit or even equities that Central Banks are becoming key to the asset markets. We think a rate hike would have a negative impact. Monsanto, is the third time a charm . Bernstein saying that the number bayer has to hit is 135 a share. Talking to each other and a potential price syngenta getting approved by regulators yesterday, putting the heat on a potential monsanto deal. A step closer to sources according to bloomberg. How much closer . The guy who got this moving is hugh grant. He is the ceo at monsanto. Last year he took a run at syngenta. He showed that they needed to be more consolidation in the space. He cant push back on the strategic concept of bringing too big jonathan because he made it. Exactly. A yearandahalf ago he was arguing that this was what needed to be done. I believe right now that they have offered 1. 5 billion for termination fee. They will want more at monsanto because there are regulatory issues that will come up and price always matters. Glencore reported a 66 drop in the first half profits. The minor and commodity trader is owned by glastonbury. Net income falls to 300 million. Debt reduction is a banner head line with this set of numbers. Exactly and that is what people will be paying attention to today. The surprise is that people are talking about reinstating the dividend by next year at the big and other big story for today is how much progress they have been able to make in cutting debt. You saw the unexpected deal coming out and that speaks to how quickly and how much. Thats an effort to stabilize the Balance Sheet and turn around the company. There is a mixture of stories. Very good performance from the marketing business. Sort of as predicted, but still a good performance. A good recovery on the metals and mining side of things. The actual physical mining of what they do. But not so good on oil and gas. That has dragged them down. The cost of servicing the debt has gone up. And there is a hit on the hedging activities. So this has dragged the headline numbers back into a loss, but the underlying business is doing really well. So on balance, quite a nice report. Carson block entering new territory. The Research Firm is betting against the financial strength of st. Jude medical. This is as the Device Company is in the middle of a takeover. Why do you believe the stock is poised to fall . We think there is a very good chance that it is about to lose close to half its revenue. That could be for two years or longer. This would be due to device recalls. He found a security flaw. You found and achilles heel. We were made aware of it. We did not find it ourselves but we were approached by Cyber Security researchers who had been doing a study on the four largest manufacturers of cardiac devices and their security. So what they found with the saint jude devices and the ecosystem stunned them. This appears to be a company that, for years, has put profits before patients when it comes to Cyber Security. And we think it is important to make sure that users are notified of the risks and to hold them publicly accountable. Saint jude has made a statement saying it takes the security of its devices and data very seriously. Saint jude says it will remain vigilant to the sophistication of those seeking unlawful access to such data. The saint jude cto denied the vulnerability saying allegations are absolutely untrue. What do you make of this . How seriously should we take it . We talked to the Cyber Security company that did the research and their findings track with discoveries that we have written about over the last eight years. The sub story here is the sequence of events that led to this information going to carson block. It was the Cyber Security firm in miami that was doing research on these for some 15 months. And then brought this information to carson. And then formulated this short hypothesis. This is totally unprecedented. Tell us specifically how you would make money by passing on a solution to muddy waters . Do you make money regardless or is it only if they make money . Matt do you get paid a fee . We are paid on a fee basis and as consultants. Our compensation is connected to his investments. Markets and economists are on standby as we get set for Janet Yellens speech, the formal topic is around Monetary Policy toolkits, and many will be looking for clues as to whether the central bank could raise rates as soon as september. Janet has a message. She is not part of timetable on it, but she says the Economic Data has improved and the case for an increase in the federal funds has strengthened. Parts that how you will, but it is the most optimistic and directs that janet yellen has been about Interest Rates in quite some time. The labor market has improved and inflation while still low is still subject to the transitory effect of energy. Janet yellen goes on to caution that the outlook is uncertain. Policy is not on a preset course. The feds ability to predict where rates will go is quite limited. Because disturbances and headwinds continue to buffer the economy. So over the longer run, she adds that forecasts show that the rate will settle at 3 in the longer run. That is higher than most people on wall street would put it. The rest of the speech is a defense of the fed policy actions during the recession and recovery. How they have contributed to the economy including the big Balance Sheet. Janet yellen goes on to say that at this point, we need the tools Going Forward although she says the fed is not studying the idea of targeting higher inflation or nominal gdp. Matt we have much more from jackson hole later in the program. Interviews with several significant figures at the fed. Plus we hear from howard marks and we dig into some surprisingly sunny earnings reports from builders on both sides of the pond. Up next, get ready for tesla that can hit ludicrous speed ridiculously quickly. This is bloomberg. Matt this is bloomberg best. I am matt miller. Lets continue the global tour of the top business stories starting with a major acquisition by one of the Worlds Largest pharmaceutical companies. You have pfizer clenching the purchase of medivation, 14 billion. This deal gives pfizer a block buster Cancer Treatment that is already approved for sale. There were three or four other companies around medivation. It trades at 81. 50 a share. Off on your expectation of valuations and what others would bid. Pfizer really came in and blew them out the door with a 14 billion allcash bid. Looking to split into two at some point. Does this purchase make it more or less likely . One of the test things for interesting things about pfizer is that they are so big that even when they go out and do a 14 billion deal, there are analysts saying it doesnt move the needle for them and it wont affect the split. Another crisis on the horizon for volkswagen. It is here and now. The german carmaker is having to halt production with its most popular model. Talk to us about what is going down in germany. Right now they have shut down production of the golf. A number of plants are affected. It is unusual. Volkswagen is known for pleasing squeezing suppliers. It looks like they have gone too far with this one supplier and the damage could be as much as hundred Million Euros a week. Shares of europes largest automaker rising today after it negotiated through the night to reach a deal with a supplier. Work had been called that for atted for almost a week factors across germany. What did the deal look like that they came to . Details are sketchy. Only know for sure is that deliveries of those parts these are seat parts and transmission parts. Delivery will be restarted and will be resumed in the coming days. So production can restart. This kind of an action wont sit well with volkswagen and they will likely seek second suppliers for these types of parts so they are not left henan hung and dry in the future. Investors in tokyo dealing with a new whale. 1. 3 trillion Government Pension Investment Fund has become the main shareholder of honda, mitsubishi, and more than 100 other companies. What do we think here . The fund is huge, to say the least. They own 5. 8 of japans stock market. They are haule a top 10 shareholder in 99 of japans biggest companies. Take a look at this chart. Out of the 500 companies on the top, they are the top owner of 121 firms there. The number two owner of 141 firms. What does this mean for individual companies . The fund has billions of dollars and more thanes double their holdings and investments in japanese stocks. Lets move to turkeys central bank, just moving to add more stimulus to the economy. This is following the failed coup. It cut the overnight lending rate for a sixmonth, trimming it to 8. 5 , matching the estimates of economists surveyed by bloomberg. Take us through the market reaction. We did see the turkish lira rise because this was expected . It was up a blip higher, there was relief that the bank did not move with a higher than expected rate cut. Any sign of what will come next . Do investors think the central bank will cut again next month . Many Analysts Expect the central bank to keep cutting rates as long as the Global Environment permits. The turkish lira has rebounded quite strongly after the coup attempt. And there have been inflows back into turkish assets. The turkish bank will be taking advantage of that in cutting rates. Elon musk is vamping up teslas model s and x, telling investors to expect more powerful batteries that can cover up to 315 miles on a single charge. He is also appealing to sports car enthusiast, saying it will accelerate 60 Miles Per Hour from zero in 2. 5 seconds. How significant is this announcement . In terms of technological advancement, what elon musk talked about is marginal that , but there is some significant marketing news. He can say he has the first car that can go over 300 miles on a single charge and he can brag that the model s will be the fastest car in the world that you can buy at retail. South africas finance minister says he wont obey a police order to present himself for questioning. He was summoned with connection to allegations of authorization of a special investigative unit. That is when he headed the national tax agency. He has denied any wrongdoing. The rand lost ground after the announcement. What should we take of the squaring off of the finance minister versus the government . The finance minister has made it very clear he wants to carry on with his job, to focus on the mandate of steering the economy through difficult times. What we do know is that yesterday he was expected to make a decision and that is what he did. He made a announcement saying that growth would not reach levels that the government had anticipated earlier this year. What we know is that the two other officials implicated have presented themselves to the police as requested this morning. As to whether the finance minister will be called and again, we are watching this very closely to see how it develops today. Mark mobius, tell us spoke spoke to Bloomberg Television earlier on when he says that intervention eventually could happen. Theyre going to be much more circumspect and they probably will wait until the yen reaches 90 before taking action. Jonathan the last time the yen reached 90 was back in 2012. I dont think this is a decision the boj can take lightly. For that matter, i dont think it will happen in september. I think what will happen in september is the bank of japan will want to fight the idea that it is out of ammunition. So i would expect them to talk about easing or possibly deliver something, especially if the dollaryen is below 100. For helicopter money, the boj they would need to be in panic mode. We need the dollaryen to be well below 100. Jonathan mylan stock up this morning trading after the company said it would take immediate action to cut the cost of the epipen after facing pressure from politicians. That is including president ial candidate hillary clinton. The volume got turned up and the company act down. How embarrassing is this . It doesnt look good. They had a rough time. They are one of many drugmakers recently who have come under fire for raising drug prices so high that people cant afford them. So they have reacted fairly quickly compared to others and have offered assistance with trying to afford the high prices for the epipen. Investors are saying that they were a little bit afraid that mylan might take a hit as far as the profitability and that prices would have to come down so mylan wont be getting as much revenue but ultimately, no one that i talked to thought they would be irreparably harmed from this. Bloomberg news has learned losecooper is set to 1. 2 billion in the first half of the year after turning a profit in the u. S. During the first quarter. What is leading the losses . We are in uncharted territory. Even if you look back to the biggest excess of the bubble, amazon lost 1 billion. Uber looks like it will surpass that this year. The main big story is china. Uber has been spending largely on subsidies. Mainly overseas. The good news for uber is that they made a big deal with their largest competitor that will allow them to exit the market. They are telling us or people familiar with their finances are telling us that in the second half of the year we will not losses. Nonetheless, uber commands an extraordinarily high valuation. How does the market justify these continued high valuations when the company is bleeding cash . The market share. Uber has 85 of the u. S. Market and people think this is a big industry. Uber be losing amounts of money may but it is growing fast. Huge growth and huge expenses. Matt you are watching bloomberg best. Lets turn now into the latest installment of the small to big series. Not every company follows a Straight Line to success. There can be some serious setbacks like a Global Financial crisis. Factory 360 has had quite a ride since it opened doors in 2007. The ceo tells the tale. Factory 360 is an experimental marketing agency. Taste, touch, feel and be educated on the process, that is where we come in. Either working for a number of years in Corporate America in marketing. I had the entrepreneurial itch to go out on my own. In the fall of 2007 i got a lump sum bonus and thought, now or never. The first year was great. People taking meetings with us. We had some small projects. And then in september of 2008, it happened. Lehman brothers the whole , collapse. It was like building a boat in the eye of a hurricane. We were forced to really be creative with less and make it into more. By 2010 we could see that something was shifting and things were starting to loosen up a little bit. We could see the light at the end of the tunnel. We found a niche. We worked with paypal and ebay and lyft. Silicon valley lived online and operated online. They pressed that button and people came to them. There are no longer growing online and they are having to go offline to grow online. We have had to really compete with so many other industries for great talent. For us to keep running our business we are constantly recruiting. We have ads on so many different verticals all the time and we never stop the interview process. We want to meet who is out there and we want them to meet us. That is part of our secret. We went from two employees to 45 employees. We opened an office in San Francisco in 2014. We have gone from 200,000 to over 10 million. We would like to double our revenue in the next five years and we would like to open more offices in the United States and broaden the international footprint. The sky is the limit because this industry continues to grow and we see a lot of upside so we are excited about the future. Very bullish. Matt still to come, howard marks on the challenges of investing in a low return world. Plus, conversations from jackson hole with the latest on what fed leaders are thinking. Straight ahead, highlights from the weeks earnings reports including a pleasant surprise from best buy. This is bloomberg. Matt welcome back to bloomberg best. We are getting some surprises. A pair of Home Builders beating expectations. Results ran counter to conventional wisdom after the brexit vote. The u. K. Housebuilder pretax profits coming