David it is all straight ahead on bloomberg best. David hello and welcome, i am david gura. This is bloomberg best, your weekly review of the most important analysis of Business News and interviews from around the world. As the week began, a proposal to merge two giant Chemical Companies took over the headlines. Shery bayer is proposing a blockbuster deal that would create the largest supply of Farm Chemicals and genetically modified seed. Bayer wants to buy monsanto for 62 billion in cash. That represents a 20 premium. It would be the biggest takeover ever by a german company. Francine if monsanto actually rejects your offer, are you ready or do you have a capacity to increase the offer . Werner we are totally convinced about the effectiveness of our offer. If you look at the fact that it is a 37 premium over and above the effective share price as of may 9. That is a strong testament as to the Value Proposition of monsanto shareholders. It is also in line with the transactions and attempted transactions we have seen in the past. And we are fully convinced that it is a highly effective offer for monsantos board. Also the shareholders. Francine is it your final offer . Or just your first . Werner the best and first offer. We are waiting for the offer from the shareholders of monsanto. Rishaad 106 is the monsanto share price. That tells us investors are not convinced . Aaron no, they are not. There is a lot of concern that investors will come back and say that is not enough money. David the current offer of 122 a share is inadequate. There is a statement of today, it does not adequately address and provide reassurance for some of the potential financing and regulatory risks related to this acquisition. Francine do we intimate they are prepared to pay a price . Aaron that is a fair assumption. I have rarely seen such a friendly rejection from the target company. On the one hand, it says it undervalues risk, but it says it respects bayer and sees the rationale for the deal. So it has very obviously invited them to come up with a higher price. Bayer has to ask itself if we are going to stretch the balance sheet, do we want to raise more equity, sell assets . I think, if i had to guess, bayer does not table the best offer first, there is room to bump. Scarlet the dow up more than 200 points, u. S. Stocks close staying near the best level of the session, joining a rally we saw overseas in european markets. If you break the s p 500 into 24 interest groups, everyone of them climbed. The worst performer was energy. That still gained one half of 1 . Alix it feels like a riskon day. We had the home sales that were killer, but oliver pointed out before we got to air it started overnight. It is hard to find a specific catalyst. Oliver definitely helps when you open the day with european indexes across the board, on the other side of the pond, trading at standard deviations two times as high as they normally close. It definitely helped quite a bit. And you had some companyspecific news. A good day from apple again. Nice to see that back in the mix. Overall, great day for biggest day in three months. And new home sales killer. Really amazing new home sales. Amazing home sales for april. It will be paid back down the road. Helps with risk on momentum. Matt greeces creditors have reached an agreement that will allow the release of 10. 3 billion euros of aid. They have also committed to taking steps to relieve the burden of the nations 321 billion euro debt. After a meeting of European Finance ministers, the International Monetary fund softened its hardline stance. What will be the political impact of this . Ian there were three main headlines really last night. There was the deal on this payout of 10. 3 billion euros to greece. There was also an agreement to look at debt relief in the future. The details are still to come. We have to work that out. And also, the imf gave a commitment that it would continue to participate in the greek rescue. That is important for germany, particularly going into the federal elections next year. So, the political impact will be some respect for alexis tsipras, the Prime Minister of greece. In germany, some certainty for Angela Merkel going into those elections. But more than anything, some sense of calm now, sense of debt relief has been pushed until probably 2018. Guy im looking for details and struggling to find them. This feels all too reminiscent of where we have been before. Ian it does, really, doesnt it . It is particularly reminiscent of all we have seen in the greek saga the last five or six years or so. Is this in principle agreement to keep everybody happy, but in the end, nobody is happy and it all blows up again . So yes. There are options on debt relief after 2018, that is when the Bailout Program finishes. But there are no concrete measures. Guy brent crude back above 50 a barrel for the first time in more than six months. A drop in u. S. Stockpiles spurring the latest rise. Along with domestic options in isruptionsctions d in oilproducing nations canada, nigeria, etc. Talk about the exact reason it is above 50 a barrel and why it could go higher. Tracy the catalyst the stockpile data from the u. S. Yesterday showing a much higher than expected cut in stockpiles, Something Like four million barrels. As well as you point out, we have production outages in venezuela, nigeria in turmoil, we also have the lingering effects from wildfires in canada. All of those oneoffs seem to be combining to give oil a bit of a spur at the moment. You have to wonder how much further that rally can go ahead of the opec meeting next week. In fact, bloomberg is reporting today in the preopec meeting, if you will, there was no discussion from opec officials of a production cut. It seems like at least from the gulf side, we are seeing a continuation of the strategy of maintaining market share. David now we want to go to japan, where World Leaders tangled over how to push the Global Economy toward growth. There was some language in the communique saying we need to get growth going, but they did not go as far as Prime Minister abe wanted to go in terms of talking about a crisis. Is he satisfied with this result . Yvonne he says no, really. He continued to talk about their lehman crisis even after the fact that the g7 didnt buy it. He could not get that language into the policy communique. Instead, we heard leaders declare in this document that they have strengthened their resilience of the economies to avoid falling into a crisis. We did see the g7 try to seek some coordination, but trying to get that recipe on boosting growth, that remains tangled over geopolitical tensions. David they did not get the language of crisis in, but in the 11th hour, they added the u. K. s referendum about leaving the european union. What happened with that . We had seen an earlier draft that did not have that language. Yvonne that is right, and it seems like u. K. Prime minister David Cameron really got the last effort to get that added in. They added a line that says brexit did pose a serious risk to the Global Economy. It was a good weekend for the u. K. Prime minister. He was able to get support from the g7 when it came to chinas steel overcapacity issues. The g7 saying they are going to tackle this excess, which has been fueled by government subsidies and support. Not singling out china, but the references seemed to point to it. Jonathan as the data drops here in the united states, gdp annualized quarter on quarter, the previous 0. 5 revises to 0. 8. The survey was looking for something firmer. But an upward provision nonetheless. Carl this is Important News which lowers the hurdle for what is required for the next couple of quarters to hit the feds fullyear growth target of 2. 2 . Now we need to average 2. 7 for the remaining three quarters of the year. That makes it a little easier to hit that mark and on the margin, helps them stay on track for major activity, but probably i doubt at the june meeting. David what will janet yellen and the fed be looking at in june . Is it Consumer Spending . Carl three indicators. Jobs, jobs, and jobs. David still ahead on bloomberg best, news of interest to investors involved in turkey, puerto rico, and saudi arabia. Up next, some of their weeks most Important Company stories, including a report of a new suitor for yahoo david this is bloomberg best, i am david gura. Lets continue our global tour of the weeks top business stories. Deutsche bank has been ensuring investors it is in the midst of a turnaround. Tuesday, that journey took an unexpected turn. David moodys downgraded Deutsche Bank, and it has Ceo John Cryan speaking his mind this morning. Mr. Cryan came out fairly emphatically after this downgrade. Matt john cryan saying he thought it was ridiculous for moodys to downgrade their debt just two steps above junk because, in his words, they have enough capital to pay their debt four times over. Does mr. Cryan have a point . The bank has never had as much capital. It could easily repay their debt many times over. Is that a valid argument . Peter the Rating Action was about the increased headwinds the bank is facing in terms of the operating environment, and its operating results have been in decline for the past couple of quarters. And so that is what drove our rating change. Mark what is the biggest challenge, then, for Deutsche Bank in achieving this big turnaround . Peter well, the turnaround has many elements in it. It has been a very disciplined execution by the new management team. What they are trying to do is they are trying to change the balance of the earnings mix of the bank. They are trying to strengthen the balance sheet. They are trying to revitalize the Technology Platform of the bank. They are trying to do all of these things, and all of these things, if they were achieved, we think would actually be credit positive. But they are challenging to achieve them all. Shery yahoo having its award space since early january, falling 5 . Telecom giant at t is said to be interested in buying the companys internet business. Why did at t come back into the game . Because we had heard earlier it was dropping its bid. Alex yeah, we dont know if we were fed misinformation or if at t has sort of changed its mind about yahoo look, at t and verizon are both at the point where there is only so much they can do, at least u. S. Wise, from m a standpoints. They cannot buy another wireless network. Regulators will not allow them to. They cannot buy another cable company, regulators will not allow them to. So the digital aspects like yahoo , it is probably somewhat appealing. You can make a small bet and maybe you can develop something down the road that is appealing to your wireless customers. Francine lets go to vietnam, where boeing has won an order for 100 planes from vietjet, the countrys only private airline. The deal is worth 3 billion. Vietjet is an airbus customer. It had multibillion options. What incentives were offered for you to switch . Dinesh its not a switch. Its looking at the value of the new airplanes caused the max 200, which is a variant of 370 max. This was launched by ryanair, and clearly that airplane has 197 seats. And they saw the economic stuff that airplanes, and they realized this is the best economic any airplane can have in the world. With that particular importance, and they are kind of a low carrier in vietnam right now, they have ambition to go into other parts of asia. They wanted to do a major order, so that is why they order 100 airplanes. Shery toyota is investing in uber to explore a ridesharing partnership. Toyota Financial Services corporation and mirai Creation Investment are joining together to make a strategic investment in the company. It will include toyota leasing special fleet vehicles to uber. The Auto Industry is being assaulted by all kinds of technological change. Maybe the least of those is this concept of ridesharing, but it has really taken off. It has changed the way rental cars operate, the way taxis operate. It is a big part of the global fleet. It may change the way People Choose to drive or choose when to own a car or not to. Nobody wants to get left out. Toyota has a lot of money. It is easy for them to make an investment. Get their toe in the water and see what is there for them to learn. Guy the unicredit ceo Federico Ghizzoni has agreed to step down after only six years at the helm of italys biggest bank after losing the support of investors and share price capital as well. Do they have to raise money . Jonathan they certainly need more capital. One of the issues it faces is when you are trading at four times global growth, it is hugely diluted. There was a lot of things they can do, spin off assets, relieve some of the capital pressure. Bear in mind, unicredit is second to only santander as the lowest capital big bank across the eurozone. And it has 40 billion of unprovisioned performing land. It is a big issue. Emily Hp Enterprise shares are surging in extended trading. This is half of the old hewlettpackard still run by Ceo Meg Whitman and focuses on servers and storage for corporate customers. The Company Announced it is spinning off the corporate business and merging with Computer Sciences corp. Was this expected . Anand no, but it makes sense. To focus have one part of the Company Focus on hardware, predominantly networking, storage, and servers, and then finding a way to exit the Services Business to a company that focuses on exactly that portion of the business. So, it is a good strategy. It refocuses the company into a smaller piece of the pie. But again, the risk here is that now you have an extremely small pie you are focusing on, one that is on hardware, predominately selling to corporate i. T. Systems. So, will that be the longterm Revenue Growth area for hpe . That remains to be seen. But in the near term, this deal makes sense. Shery microsoft is making as many as 1850 job cuts while taking a 950 million impairment and restructuring charge. Give us a sense of where these cuts are coming from, and what this tells us about the new strategy. Cory one of the things it tells us is that the 9. 5 billion acquisition of nokia which was Steve Ballmers last big deal, was a disaster. 7 billion last year, another 1 billion down now. It shows that decision at the time, which was controversial, was a mistake. A very expensive one. It shows you the company is focused on the things they do differently and focused on the things they do well, and focusing very much on software on the cloud, where they continue to have their powerful franchises, both on the operating side and microsoft office. Thinking about the cloud, thinking about bringing micro users to their office 365 platform and the microsoft azure platform, which they think will be the future of this business. Shares in alibaba closed more than 6 lower in new york after the Company Revealed the sec is looking into its accounting practices. That information was disclosed in its annual report filing. Alibaba is being investigated for what . Rosalind the sec is looking into consolidation policies. It has asked alibaba about more information on its Delivery Network and also operating data for single day. Single day is basically a shopping extravaganza. Once a year. It was in november last year. It brought in Something Like 14 billion. Oppenheimer co. Says the single day issue could be related to issues with alibabas definition of gmv growth merchandising volume. It basically refers to total transaction. It is possible government moved sometime that turned out to be fake. It is possible 20 or 30 of transactions could be inflated as sellers buy their own products to boost up their own sales ranking, essentially. But sec does not think it is too much of an issue, it thinks alibaba is trying to become more transparent. Alibaba says it is cooperating with the sec. And sec says just because it requests information does not mean anything is wrong. David you are watching bloomberg best, i am david gura. Earnings season is winding down, but there were still a number of Major Companies reporting this week. A roundup begins with a u. S. Builder many see as a bellwether for the nations luxury housing market. Scarlet Toll Brothers ceo doug yearley has been frustrated by the decline in his stock price. Well today, the stock is having its best day since 2013 after earnings beat estimates. Lets see what the numbers on the luxury builder show. And the numbers dont lie. First, we will discuss the stock. Even with the bounceback, Toll Brothers is down 12 in 2016. In the past year, it trailed the Broader Market as well as its peers. Todays results lessened some investor concerns, saying the luxury market remains strong and Construction Labor costs are easing. It slowed again after bouncing back from the housing crisis. Revenue increased 31 . Analysts estimate tolls revenue may recover to regain in the full year. California is a key market for toll. It represents 29 of its revenue the last quarter. It provided instant skill in the state. The northeast corridor, historically the center of tolls business, but the land has fewer opportunities and now rings fourth overall. Toll has diversified beyond the singlefamily home. It now makes up two thirds of al