and he is an all-star, whose team is headed for the record books. and he is driving sales and under armour. it's all about the business of being steph curry. ♪ stephanie: welcome to what i'm going to say is going to be quite a big morning on "bloomberg go." i'm stephanie ruhle, david westin is off. as you know this guy had his and him -- did you know this guy had it in him? josh steiner. he has much better house. , formernardelli chrysler ceo and founder of accelerate. and david kirkpatrick. twitter,e're talking

google, alphabet, we have a lot to cover with an all-star cast. we are talking about stuff curry later. -- steph curry later. vonnie: the presidential campaign ended up with surprising results in the iowa caucuses. ted cruz won the iowa vote. hillary clinton edged out bernie sanders. 28%, marcomped from rubio did 23%. here's ted cruz in des moines. ted cruz: tonight is a victory for the grassroots. [applause] tonight is a victory for courageous conservatives across iowa, and all across this great nation. on the democratic side, the closest iowa caucus ever and hillary clinton beat bernie sanders barely. people -- it shows

the american people this is a campaign that can win. bernie sanders: if i think about what happened tonight, i think the people of iowa have sent a very profound message. establishment,l to the economic establishment, and by the way, to the media establishment. [applause] sanders was campaigning in new hampshire today, the primary there is a week from today. for 35%agon last increase in funding to fight islamic state according to a defense official. billionitary wants $3.4 for european-based security initiatives aimed at countering russia's aggressive moves towards ukraine. day,lobal news 24 hours a powered by more than 150 news bureaus around the world, i'm vonnie quinn. now the markets with matt. matt: futures are trading down across the board on s&p dow jones and nasdaq. down oil continues to fall

after yesterday, erasing all of last week's games. today we are down almost 4% at $30.48 a barrel. we expect data coming out today to show the u.s. crude stockpiles continue to grow, the glut continues to be much worse than the supply growth would make up for. take a look at my terminal, you can see the effects that crude has had on the s&p, or at least the correlation between the two. correlation in january, we haven't seen it in years. but here you see a little bit of a breakaway. and now we have s&p futures, which were up, crude coming down. it seems like today premarket could that the two back in lockstep. i want to talk quickly about google. obviously, the earnings for alphabet, the parent company beat -- let's talk first, let's

go ahead and go back to those premarket movers we just saw earnings crossed for pfizer and dow. dow revenue was better than expected, and earnings blew it versus $.69. dow was doing very well. possibly a result of loyal prices. sales forecasting eps and weaker than they were looking out in 2016. pfizer is falling in the premarket. let's go back to google. alphabet is beating expectations by a mile. you can see shares are up almost 5% in the premarket. this is typical. when google beat the shares rock. if they were to miss, you expect shares to fall. the move that we see after sometimes four to standard deviations away from what you typically see. expect alphabet shares to run today.

and also, the market cap to eclipse that apple. in the premarket, we are already seeing that happened. the blue lineook, being google or alphabet, the white line being apple. we expect to google shares to rise up to about here at the open. the red line there, eclipsing the market cap of apple coming well above the $.5 billion mark. apple has been moving down over the past few months. it has been a rough time for apple, a great time for -- to have to get used to saying alphabet? stephanie: can we put into perspective, a rough time for apple. matt: they lost $.25 million in market cap. stephanie: we have to talk about alphabet more. if you look at the run they've had, i'm looking at the holders right now. this blows my mind. it usually blackrock fidelity. andheir case, larry page sergey brin, number one and number two.

can you talk us through what's fueling this growth? is it ad sales? it is. it is a simple story, just topline advertising growth. we saw company with $75 billion of run rate revenue grow its topline advertising, excluding fx, over 20% this quarter. they do it every single quarter. what is showing us right now is here is a company that looks to managing thely migration from a desktop community to a mobile environment. what we are seeing is a surgeon advertisements sold on their mobile devices. they are selling a lot of advertising spots on their search queries, on mobile devices. the prices are lower, but this is one of the rare cases where they are making up for it in volume. stephanie: who are they taking this market share from? are taking it from traditional media and television, primarily. google came from out of nowhere and basically became the world's largest media company, if

selling ads is what media companies do, they do it better than anybody. david: you is in a facing -- google isn't facing a slower growth market in china. i think is a lot of wind in the sales for google. the: i want to go back to decision to provide transparency. -- bob: is this an argument for transparency? they can afford to take some of these moon shots in terms of artificial intelligence and driverless cars. the street is willing to give them the rope to make these moon shot investments. when they came public, right there in their perspectives was a statement they will spend 10% of their expenses i'm including capital spending on moon shots. they said that right up front, and it's exactly what they have been doing. canwe get transparency, we to the profitability of the core business and what they are

spending on these investments. stephanie: we go through insight last week from barry diller about what it's like to be a company interfacing with google. take a look. serfed on of us are the land of google. that's just reality. as i told google, it's ok, it's sensible to treat your serfs well. if you don't, history has said they rise up on horses and kill you. serfs.all are stephanie: is google that powerful? collects it seems there's a fundamental truth. i think wall street in this case is requesting reality and making google the most valuable company in the world. it's basically leading the way into a new economy. it's to a large degree defining that economy. many other companies don't have a clue. google has a clue not only that we are into a fundamentally digital economy, but that any company, including a self, has

to constantly keep doing things in order to thrive in this environment. >> enough to make sure your core is solid, enhance your core, extender business. in this environment, you innovate or evaporate. google is well ahead of its competition. questions is if you define your business on your own terms or be defined by someone else. are so many businesses defining their strategy in relationship to google. they don't control their own destiny. josh: i do listen to their shareholders. i think the greatest example of that is the new cfo came in about a year ago, and she said i recognize that shareholders want more transparency, they want to see where we are spending the money. they want to see some cost discipline. what we saw here this quarter with investors really liking was revenue grew faster than

expenses. they expanded the margins in the core business. a terms of the cfo, there's new sheriff in town and investors like what she has to say. stephanie: investors didn't just like that. 90% of the analysts who cover google have a bionic. on it. a buy >> people were nervous if she would fit in. she's made the company dramatically better. stephanie: he is saying you go girl. >> the stock moves a lot. if you have the terminal, you can enter this for this chart. matt: it shows the one-day moves for google and dark blue and apple in a light green after earnings reports. i've marked the google earnings reports here with this yellow flag, the moves are significant. deviations, the

last earnings report. eight in the last before that. options are pricing in a three standard deviation move here. why do these shares swing so much? paul: this is a company that's very widely held, but has a big hedge fund component to it as well. it's a stock that tech folks love to trade. it's great liquidity, everybody will make a market in it. there are some big swings in the numbers. we are seeing here is more stability in the reported results. i think we're going to see that now they have separated the core business from some of the speculative business. they're going to see better stability, improve profitability from the core business, and they will say on these moon shots, look at them once a year. you don't have to look at them on a quarterly basis. it's going to be a lumpy investment cycle. is the second time the founders of brought someone from the outside, they did it with eric schmidt. it's tremendous leadership and they recognize where they are strong and where they need help.

stephanie: we've seen that cruises him around over. uber.t criticism around what about saying someone let's get maturity in this place? that. has done i'm sure a lot of wall street executives would be happy to go to uber. paul sweeney, david kirkpatrick, thank you. when we come back, we talked twitter. down. are officially dying reports of a possible acquisition. we saw the stock pop yesterday until silver lake said it's not true. profits slumped, we have an interview with the ceo. ♪

stephanie: --vonnie: welcome back to "bloomberg go." dow chemical posted fourth-quarter estimates that be estimates. margins and lower all costs. in december, doubt agree with the merger with dupont in the biggest chemical deal ever. pfizer's fourth quarter earnings better than expected. he drug sales increased. pfizer has agreed to a $160 billion bill with allergan that will eventually break up into two companies. some investors are losing their patients with david einhorn after his worst underperformance ever. his main fund a capital plunged 20% last year. investors withdrew around six or billion dollars from the firm, about 5% of assets. it gained more than 1% last month. in today's global go, we

had to zürich here it shares of ubs dropping the most in over a year after the investment banking business fell in the fourth quarter. bloomberg's manus cranny just spoke with the ceo. >> i think when you look at the dynamics of the fourth quarter, you look into how it started, you could see a trend continuing. of course, there's a high level of risk aversion. people are happy with their asset allocation in general. but there paralyzed by this high volatility. and also, the geopolitical phenomenon. matt: manus joins us now. this is the ceo who has put all his eggs in one basket. this he regretting that now as far as investing so much in what management and scaling down invest -- wealth management and scaling down investment banking? manus: is going to bemanus: a test of his metal.

tough quarter, volatility liquid not seen. money flowed out the door, 3.5 billion francs. fromwalked out the door emerging markets and from europe, so it's a tough backorder, a tough january 2016. very high levels of risk aversion. his word in that clip we played was paralysis. but the margins on the business are the lowest since the financial crisis begins. he's not regretting it, he sang where not taking on any more risk and trying to juggle things. we are going through it and working through. but the market really is pacing a stock today. the other dynamic is dividends. and that's the only reason you would actually own the stock. it is a dividend play, matt. he is still defending it. >> are dividend is a reflection of a very strong year. and also, reflection of a very strong year in our operating profits. are verye reason why

dividend goes up 20% year on year, we had a strong operating environments in terms of profits. we're also adding $.25 of dividend is a special dividend, because of the deferred tax asset evaluation. we are comfortable that we can , and to to our aim continue to grow our ordinary dividend is a function of us executing on our strategy. manus: this is a stock that delivers. a 5% dividend. a 5% dividend yield, when you're sitting on your percent rates around the world. the question the analysts are asking is it better today? --ny stick to the dividend? can he stick to the dividend? is expecting 100 for next year. high level of expectation.

i think it could make it very difficult for him to stick to that. he said it was too early to make that call. josh: manus --matt: manus, great coverage. i wanted to do, stephanie with breaking news. not isie: camps try getting ready to buy syngenta for a record $43 billion. that is a big number. more details on that throughout the hour. already, we are seeing a pop. this is an area where m&a has been hot, clearly getting hotter. but the magnitude of this. josh: amazing. i think if you look at one of the four or five disruptors, it is this m&a. what we see as china putting cash into assets in the u.s.. whether it's the waldorf, whether it is a higher buying ge appliance, i think we're going to continue to see that 2016. >> we are also seeing the

secondary and tertiary effects of oil. we see the other chemical giants try to take it manage of a very different energy environment that existed a few years ago. stephanie: if you are the entity with a massive balance sheet in cash, this is the perfect time to be in that scenario. >> there's never been m&a like there was last year. every ceo was being barraged with incoming ideas, saying this is the moment. if you want to move now, if you don't want to move now there's a big risk. some assets you covered for a long time, like the dow dewpoint deal -- dow dupont deal will go away. , right in the middle of pico and johnson controls. they are having to share to win going forward, or they're just intermediate in themselves, selling off, doing some breakups, trying to get cash like ge did with n appliance. we're going to see a lot of ciaran it in -- a lot of churn in 2016. stephanie: more and more ceos

were sitting in cash and fear. when you are in a moment like this, you can't say we are to grow through buybacks. josh made a big point about input costs being lower. matt: if you want to look at my bloomberg, oil prices and syngenta shares, it's in switzerland, manus can get the inside scoop. oil here, i've used brent because a european company and this is a global benchmark coming down over the last year. syngenta shares have had a great year, going from 300 to 400 swiss francs apiece. they're going to get a big premium, a $36 billion company, a $43 billion price. it's going to be a fantastic premium for them. in moose has really been lower input costs. as oil goes down, we forget their other companies that benefit. we sometimes overlook at bp and

their $6.5 billion loss that we will talk about later in the program. but are companies like dow who , so massivet ups windfall in the drop of oil prices. other thing is coming out of the financial crisis, what did you see ceos doing? controlled costs. they took considerable costs out of their businesses. stephanie: across industries. of oppositions. >> if you think about the major disruptors this year, it's going to be innovation is a mentioned earlier, activists. ceos areot of the spending 30% or 40% of their time figuring out how to defense against these activists. it's the number one growing service among the big four. it's talked about mostly ui survey, most of the times they are talking about activism and how they protect themselves or about cyberattacks. stephanie: more and more ceos

have become their own internal activists. if they don't, carl icahn is coming knocking. >> using we touched on was the issue about china and the change in their currency. not just chinese consumers are looking to buy assets overseas. if you're looking at depreciation, you begin to look to buy assets overseas. there's no difference between the consumer and the ceo in that respect. >> if you are in your own internal activists, you are going to be challenged. if you are not looking at that cash allocation, if you are looking at how you get growth one way or another, people are going to come after you. stephanie: is the moment for the smaller midsized companies, especially those affected by oil prices, to get real? it doesn't seem to be a catalyst that will move oil prices to the positive and actually getting intellectually honest about what your company is worth today. this may be the moment for m&a, but to do it actively rather than what a big company has their foot on your floral bash

on your throat. we need major policy reform in washington. i have a couple of energy companies right now where we export gas. bob: lower prices are an advantage. we had over 2000 fracking rigs, we are now down to 200. the average work on a rig is $93,000. we squashed one of the great growth areas. we need to increase our exported gas, we need to increase our export of oil so we can compete at these prices. we got to go out and get global shares. and we should use it as a geopolitical tool with angela merkel to defend against russia. josh: that old line the solution to low prices are low prices. you're beginning to see it in the oil and straight. people are cutting back on production. i was talking to an investor at monarch, he was saying that there's a disconnect right now between underlying asset values of companies and their dcf value. why is that?

bob: they are still spending a lot of operating costs. until you see some of these companies go through a restructuring, take out some of that operating costs, whether it's people or the long-term contracts they have, you are not going to see a marriage between underlying asset value and dcf. m&a allows you to do that. bob: you're going to get from it is productivity of synergy. i saw that we put chrysler and fiat together. stephanie: you are going to see investors, sophisticated distressed investors love this restructuring cycle. and those who simply played in the credit market because they needed yield get seriously burned. josh: no question. the vast majority of energy that is unsecured. those people who played in that unsecured portion of the capital structure looking for yield and going to get badly hurt. stephanie: i want to bring in matt campbell, break this down. we have seen across the

tape in just the past few minutes is the news that syngenta has agreed to be bought china 44 $3a -- chem billion. deal by be the largest any chinese acquirer, the largest deal outside of china. so i really significant piece of news in this ongoing saga of where syngenta woodland. -- would land. stephanie: we will watch the stock reaction throughout the hour. you are watching "bloomberg go." ♪

stephanie: you are watching "bloomberg go." we are checking out shares of bp falling today after the company in thed a 91% decline

fourth quarter. other oil majors also falling today in the early u.s. session. we are getting axon earnings at 8:00 a.m. i get a feeling they're going to be heavy. you are watching "bloomberg go." ruhle with josh steiner, bob nardelli, and the one and only tom keene joins us for this morning's must-read. loved it yesterday. that was the must-see tv. we have a highlight from this in the moment. here's vonnie quinn. tell us the didn't iowa caucus would end up like this. surprising with results, ted cruz won the republican vote, and hillary clinton and shout bernie sanders. marco rubio did better than expected, he got 23%. hillary clinton one, but it was tougher than expected. .4%.eat bernie sanders by the european union says it's close to a deal with the u.k. on

revised membership that would clear the way for david cameron would an agreement that allow him to hold a referendum as early as june. part of the agreement, national parliament to block european legislation. has been tourism devastated by suspicions that a bomb took down a russian jetliner. going to nubbers compiled by bloomberg, the number of plunged 41% from a year ago. the plane crashed in october and led to rush and u.k. restricting flights. news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. i'm vonnie quinn. stephanie: this morning's must-read is a much watch. you sat down with stan fisher. what was his takeaway? all, i got better questions from the floor than the question i asked. i had to be polite and delicate on stage.

stephanie: when i think about tom keene, i think about light and delicate tom:. -- light and delicate. tom: part of the questions from the floor, the council of foreign relations on negative interest rates. here was the vice-chairman's response. >> countries that have used it continue to use it. they haven't given it up. we even have the danes undertaking their monetary policy and they raise the interest rate from money 75 basis points to minus six i-5 basis points. -- -65 basis points. thereby raising the interest rate. it's working more than i can say i expected in 2012. i wasn't on the committee at that stage. tom: i'm flabbergasted by the answer. vonnie, you could really feel that. vonnie: surprised everyone he admitted there were good benefits, because the original

question was what are the negative effects of negative interest rates. saw a staunch defense of negative interest rates over the weekend. a short note, but nevertheless pointed. business people live with this foolishness. it's not even in economic textbooks, but people like the vice-chairman are doing this. what you businesspeople do in a low rate environment?' it as to the level of uncertainty and challenge for the ceo today in that office. everyre having a pivot morning all throughout the day based on changes in currency in the market and the fed rates. businesspeople don't care about the next two or three rate hikes, do they? bob: they do, because the activists do. they are becoming more active. there activists and activist investors. the activists are concerned about the short-term and we see that all the time with carl and

bill in some of the others. then there are longer-term active investors who are really looking for a longer-term value and working with the ceo. they have to balance, if you will, the various pressures they are getting externally from activists and active investors. wbs: you saw ubs -- josh: saying earnings were hurt because the more their clients were keeping money in cash. that's a reflection of a which rate environment. and part of what's going on at m&a is the fact they have so much cash in their earning no income, they are better off putting it to work. tom: what's fascinating about this, it's the momentum effect of greater negative rates. it's really uncharted territory. we don't know if denmark goes lower, lower, lower, sweden, etc.. if japan or canada were to do that, we don't know where that cash emotion really click send. vonnie: we don't fully know the

mechanism it would be distributed through the economy. bob: what will stop that declined? tom: i don't know. i'm in the camp away from certitude that negative rates are great or bad. we just don't know. whichcertainty vice-chairman fisher brought up a number of times. josh: the hope is you see ceos deploy their cash in some way other than m&a. ultimately the cycle is that kind of capital investment to create the job and investment necessary to get the economy going. another $1st put million into their reserves. they are being encouraged to build their cash reserves just in case. vonnie: jp morgan saying 41% of s&p companies reported now, 49% have missed on the sales. cbs, -4% growth. if you take out energy, that will change. out with good

earnings madame their perspective for 2016. think is going to be a challenging year. vonnie: soto stanley fischer. -- so does stanley fischer. stephanie: we have to talk about earnings winners and losers. we are almost halfway through company earnings, so far we've 3.7%average profits fall and average sales falling 2.5%. i want to dig in to some of those winners. andr armour, a big winner the stock spiked 22.6% after the company reported we got consol energy soaring 17.6%. on the losing side, ebay dropped 12.5% after missing and american express dropped 12.1%. as the underlying story here you have to innervate or evaporate? curry, thes steph

number one basketball player in the world and an under armour athlete driving their shoe sales, specifically in china. here's what he had to stay. stephanie: you want to bring other guys, women on the roster and make a bigger under armour team. stephen: 100%. definitely it a partnership we announced last year, to be in this thing hopefully for life, being able to grow the brand, whether it's basketball, the basket will business across all the different sports. stephanie: your take? josh: under armour is doing a great job. but have steadily unpredictably increased. they are becoming more of a competition for nike. it's a very deliberate growth. their customer facing. they take every customer is a segment of one. that's what you have to do today, in today's environment. you have to have customer centricity, market focus, that's what under armour is doing. lookanie: the beauty is,

at retail. we talked smoked across the board last year. and now we are starting to see individual stories, good stories come back. bob: the only retail segment the did well last year's automotive parts. why? automotive is growing, yes prices are low, more driving, people have to do maintenance to their cars. the only regional segment that did well last year was auto parts. stephanie: you also have to factor in technical. if you look at some of these companies who did so well, if they are winners that you see investors sell at the end of the year, they don't want to admit their losses and energy. they look at their winning stocks and sam going to sell here, the markets going down, and i'm going to reload come april, may. bob: systematic entry. so they can, when it starts to drop, they go in and do the push and get you back: again. whole again. stephanie: that's my favorite. josh: we don't need to look

anywhere else but the bloomberg when we want earnings information. ,att: if you just type ba go 51% of countries have missed on sales, the most missing. on earnings, 80% of company's have beaten the street estimates. what does that say, bob, that we are able to beat on the eps line, we can beat on sales, that's got to be a concern. bob: that's going to catch up with you. you can just cost yourself the prosperity. they have to find the growth side of that equation. vonnie: have a beginning a tailwind from energy? -- have they been getting a tailwind from energy? and if it goes away, what happens then? bob: it's been strong wind in the sales for auto. strong start. two things. energy prices are low, people are driving more.

and they are buying the big cars. the suv's, the trucks. margins are over the top. that's why gm is doing so well, for his doing so well. energy, will hurt some sectors, is really helping others. housing is coming back. matt: you can see that if you click on the growth tab on the bloomberg energy, profit down 70%. it's been a rough quarter with prices. if you look at consumer discretionary, which bob is talking about, profit is up 28%. it's been an extremely strong quarter for consumer discretionary stocks because of the drop in oil prices. stephanie: we have to take a look at the losers. ebay, american express. american express is front and center getting this. when you think about the experience economy in the way people are spending more, american express was the first to offer experiences. the centurion card, when you can do more than just buy something. membership having its privileges. maybe not. if you don't offer those customers more and new, they are some really going to leave.

a very competitive market with a credit card, what are you getting airline points. stephanie: they lost the cosco deal. josh: they are having interest rates on some of these cards. two cautionary tales. you see discipline and the power of amex the cosco, i do see a restructuring you may. both of those people who exercise discipline and then do what actors want them to do, which is restructuring and reorganizing. neither of them getting the benefit in the market. stephanie: all right. we are breaking down the earnings scorecard, those numbers are out. we need to figure out what to buy and sell. we take a quick break, and coming up, mike's was an interview with the one and only stephen curry. we didn't just talk basketball. of course, we talked the upcoming presidential election, donald trump. stephen: donald trump? i will call them interesting. i just want to see how this thing unfolds. stephanie: i will call him interesting.

we also talked more about his surprise second place finish in last night i will caucuses. -- iowa caucuses. remember, it was tom brady, and big as late who called him a friend. we're back with more. ♪

stephanie: welcome back. i'm here in our new greenroom, lots of great guests coming up, including steph curry. he's talking business, and his brand. vonnie: welcome back. you are watching "bloomberg go." i'm vonnie quinn.

here the latest news headlines. we got earnings this morning from pfizer, and later today, yahoo! ceo's expected to announce another plan to cut costs and increase growth. they may end up selling up to 15% of the workforce when yahoo!'s earnings come out after the closing bell. bp got slammed by the lowest oil prices and more than a decade. the british energy company reported fourth-quarter earnings down 91%. oil's collapse has driven bps for the firstown time since the gulf of mexico disaster in 2010. in new york, hundreds of uber drivers staged a protest. cut fares oner basic service by 15%. breaking news now and matt miller. earnings coming out, fourth-quarter revenue was $16.1 billion. the estimate was $16.2 billion. we see a company that can't

manage to beat the street revenue, 10 minutes to be the street sales estimate. as far as earnings go, ups had a big beats. $1.57 was the published adjusted eps number. we were looking for $1.42. eps beats on earnings, mrs. just lightly on sales area. this is a thing we saw with the a function all along. we are getting guidance for the 2016 earnings, 570 to 590 is what ups is looking for. 590,he full year, 570 to the range is a good range compared with the street was looking for. i'm looking for a 2016 sales guidance, lc one just yet. i'm going to look into the statement, i will pull out some of the key phrases for you. ok? that cool? stephanie: it's pretty cool.

big surprise last night in the iowa caucuses. the narrative is the outsiders on. -- w hillary clinton winning by less than .5%, most delegates counted. for gop, donald trump is not a winner. oddsmakers in vegas was be losing their mind over this result. senator ted cruz taking home the victory with trump just edging out ruby over second-place. managing's politics editor mark halperin has made his way from iowa to hampshire. next tuesday's going to be the big day out there. it was a night of victory for the outsiders at least. top three republican finishers are all outsiders, they had to freshman senators who rail against washington and donald trump. on the democratic side, bernie sanders tying hillary clinton in a state where he started basically at zero and fought her to a time.

with sowe go forward many different storylines. 64 republicans poised in a position potentially to win the primary up here. and standards of the big lead, hillary clinton having to figure out how to navigate the next week, running a state which is well behind. josh: we haven't seen election where goldman sachs played such a big role. ted cruz was attacked because of the loans, hillary clinton was attacked at least obliquely. do you think the wall street theme helps those two candidates? do you think will play out to a greater extent going into are in super tuesday? -- new hampshire and super tuesday? mark: there's to satisfaction with an anger at wall street firms in particular. goldman sachs gets singled out. you have a fair amount of financial support going from goldman sachs first to jeb bush and now to marco rubio. hillary clinton has ties to goldman sachs as well. bigger theme that's going to come forward is the question of who can talk about the economy

in a way that doesn't fit one side against each other, that isn't mainstream versus wall street or as an anti-financial institutions that are a big part of the american economy, but as a unifying vision. i think you're going to see that between clinton and sanders. and on the republican side as well. if history repeated itself, ted cruz should not be so happy. because they have not gone on to win the nomination. hillary andk at sanders, i think it's a tie, why was playing college football, ties a loss. -- a tie is a loss. stephanie: my surprise wasn't in so much ted cruz, it was trump showing a tone of humility as he accepted his second-place finish. was that really to win over the islands -- iowans? mark: it was his first test of how to come back from loss. you could've given a speech that would put him in a worse place. he helped himself by showing some humility and showing that

he has more work to do. regarding ted cruz's win in iowa, every cycle is business. and went ongot iowa to be president. ted cruz has more money in the bank now than the four establishment candidates do. more money he's competing against except donald trump. and ted cruz is a strategy to win states down the road. there's no one else in this race besides donald trump who can point to more than a handful of states they could say i can win that state in this crowded field. helps them,owa win it doesn't mark him as someone who can't do want to be the nominee. stephanie: what does this mean for hillary clinton? we didn't know bernie sanders four months ago. mark: she has to finesse or lead. bernie sanders has at least a double-digit lead. i don't think many people feel like she can fight back here. the question is what happens after? bernie sanders needed to win iowa and new hampshire. i think he effectively and

symbolically did win by tying. and then needs to prove he can win somewhere besides iowa and new hampshire's electorates are more suited to his message in his profile, and can he hold his own against her in some states? there are some states with caucuses where he is expected to do well. yes the show you can win states that have a more diverse electorate than iowa and new hampshire do before anyone can say she is not the prohibitive front-runner. he's got a have a lot of money. , hillary $20 million clinton has to find a way to fight off bernie sanders, because she can have a long nomination fight. but the republican nomination fight right now looks like it's shaping up to be a long one as well. raised $20he million, but he hates it just the same. mark halperin, thanks for joining us. you have rest -- you have to rest up, you have a wild week ahead of you. staff -- steph

versus steph. guess he makes the most free-throw shots in half a minute? what is it was a special moment for me. it's been quite a morning, we have a lot more to cover. you are watching "go." ♪

stephanie: we are back. i sat down with stephen curry, the superstar of the golden state warriors. considered by some to be the greatest shooter in nba history. yesterday, i took him on to see who could take the most free throws in 30 seconds. stephanie: what's my advice? i was at dwyane wade's house, and i embarrassed him. stephen: i aim at the front of the rim with a little bit of our -- arc. you are a lefty? stephanie: all the cool kids

are. yes. in 30 seconds. are we timing this? stephen: that is too. stephanie: i can't leave this is happening. stephen: that is three. stephanie: are you watching this? how many can you get in 30 seconds? did you just see that? stephen: watchmen missed the first one. -- watch me miss the first one. stephanie: yes. you are up. 30 seconds. how many are you getting in? stephen: that was one. i'm going to see how many i can do without touching the rim. three.- stephanie: five seconds. stephen: that's game of. stephanie: thank you so much. stephen: is that the pressure on

me. that was perfection. stephanie: did you see that? i'm impressed with myself. nba,is guy, m.v.p. of the possibly going to break records. it was the chicago bulls -- book,it was a great fooled by randomness. fooled by randomness. there's another phrase called touched by god. josh: i'm willing to was america with you want. -- a miracle if you want. stephanie: we have the full interview in the next hour. thank you to bob nardelli, but i would let john stay, but after this insult, he's out of here. ♪

stephanie: breaking news from the oil industry. what impact is funding prices have on the big preview? we get earnings from axon in xon in a- from ex

moment. and how steph curry has become the face of under our -- under armour. google's parents now that is best become the world's most valuable company. alphabet ismpany about to become the world's most valuable company. ♪ stephanie: welcome to the second hour of "bloomberg go." david westin is off, but guess you sitting next to me -- guess who is sitting next to me? the one and only matt miller. i would like to say you left the terminal, but we never leave the terminal. fenton.n matt, you of numbers. matt: we have fiat chrysler numbers, beating the street estimate by a long shot.

you gains in january of 6.9%. they were looking for a drop of 0.1%. 70thwill be the consecutive month of growing sales at fiat chrysler. we just had bob nardelli here on set. he's responsible for laying the egg -- and you say this. laying the ground for fiat to do this kind of growth. it's really been the jeep brand that has boosted sales up 15% in january. dodge ram sales were up 19% in january. trucks are a huge part of this. but fiat chrysler putting up better numbers in the street was looking for. stephanie: we have to keep our foot on the pedal. exxon earnings are up. collects without a the drop in earnings, not surprising, 67% -- $.67.

i'm looking at a sales numbers well. looking for sales number i should say. there's not one that's immediately coming out on the headlines. i will bring you that as soon as we get it. the companies the ceo saying in a statement that of course the silver ball -- the sales result are reflective of the environment. the oil equivalent production of 4.8% in the fourth quarter, from the fourth quarter of 2014. the company also talks about cash flow from operations and asset sales of $501 billion that includes asset sale proceeds of $785 million. for many of these large oil companies, the dividend is the reason that many investors still hold it. you'll has been around 320%. the company counts the dividend spending in the statement. 's x manager is a

29% drop. we've seen so many oil companies batting down the hatches and pulling in on their spending in this lower oil prices environment. even though the company's bottom line is beating estimates, we are still seeing shares move lower in the premarket. as part of the broader trend we are seeing this morning. if you look at the futures, for example, we have this sort of battle going on between lower oil prices and earnings from companies like alphabet, which are helping matters. it looks like the oil side of the equation is way more on things this morning. if you look at crude prices, is not just these companies coming out with a, it's crude prices themselves falling once again on concern over what we are going to hear in the weekly inventories report. bpl with numbers this morning as steph pointed out earlier, a 91% drop in profit. if you don't account for all of those one-time items, the biggest quarterly loss in at least 30 years time.

theng back to exxon mobil, 9% drop we are seeing in bp has been mirrored index on mobile. here's a loss, the quarterly loss we see for bp. obviously, and start contrast what we have seen from the company. this is having pressure all along the little complex. let's go over to vonnie quinn. it's off to new hampshire, last night's first test of the residential campaign ended up with surprising results. ted cruz won the republican vote, democrat hillary clinton at shot bernie sanders. first for the republicans, ted cruz upset donald trump, with marco rubio and third. trump was low-key, but he made the lost seleka minor setback. on to trump: we will go get the republican nomination, and we will go on to easily beat hillary or bernie, or whoever the held a throw up there. they throwthe hell

up there. iowa, we love you. vonnie: hillary clinton failed to get a decisive victory in the closest caucus race ever, clinton beat bernie sanders by .4%. mike huckabee and martin o'malley has dropped out of the race. the race heads to new hampshire, their primary is a week from today. the european union is making more concessions over membership. women's --e some some limits on welfare payments. just one of the demands made by british prime minister david cameron. he wants a referendum on whether the u.k. should stay in the eu. global news 24 hours a day, journalists in 150 news bureaus. i'm vonnie quinn. stephanie: we turn back to energy earnings, these companies being so affected by will prices.

exxon mobil just posting its fifth straight quarterly profit decline. also with us now, fidelity select energy portfolio manager john dowd, joining us from boston. bad news for energy companies today, as an investor, how are you dealing with the bleak outlook and oil? if you look at the fundamentals, it could be the time to buy if you take out what will prices are doing. john: the old adage is buy low, sell high. it's been a proven recipe overtime. the question is -- does it go lower first? it's a perfect environment for stockpicking. if you can find a good management team with a good asset base and a low stock price and a good balance sheet, a company that will be able to see it through this downturn, i think things will be better eventually. >> is exxon one of those companies? it beat the street estimate? john: exxon has been one of the

biggest holdings in the fund. i put into the fundamental balance sheet and its strength in this type of environment. i haven't had an environment to look at the quarter. matt: shares are down 15%. what you think about the management team and what they are doing? i can tell you that the quarterly numbers, at least headline numbers are good. do you think you will add to your position? allowed to talk about what i'm going to be doing in the fund. i think this is the time we want to be adding to energy. i think we should be adding to energy exposure broadly. when i look at the results of exxon, they been all over the map. they been losing money in the u.s. bnp business for the first time in generations. i looked back at the 1986 were , it didn't lose money in 1986. in the first three quarters of last year, i haven't seen the most recent press release, but

in the first three quarters, they lost money. that's the first time i've been able to find a data point when they have been losing money. what that says it this commodity prices depressed. what this says is when the leader in the industry, when one of the strongest companies in , itindustry is losing money says the commodity price is unsustainably low. it is below costs. it has been very effective to buy the commodity when it is below cost. stephanie: is it the right time to look at the story about these companies? or should be focusing on oil prices? with demanding a problem, do we need to figure out how that gets corrected? focus on demand. the story has been supposedly at supply. an excess of supply. it was 61 degrees in new york city yesterday. it was 60 degrees the day before christmas. heating degree days, the measure we used to measure heating demand is 30% below normal. there is a demand problem. $400,my bills are $300, or i'm typically paying up to

$1000. the energy usage in my house is gone down. is that the case across the globe? john: in china, it's very cold. but on balance, we have a problem with the weather related heating demand and the manufacturing demand. we've been in a global industrial recession for about 18 months. i think it's too much of a stretch to say that the demand satisfied, you can ignore the weather. and the money look at the equities, you have to look at supply and demand. matt: what about the argument the demand is going to recover? it's not just about heating homes, we also use less energy with cars. are we just come as a society, using less and less of this resource? john: to certain extent, we are getting more efficient. but last year was great for demand. one of the statistics i find positive, with the industrial -- we had growth in 2015.

they're calling for 1.2 million dollars a barrel, that's with one of the smallest confirmations from the chinese industrial sector we've seen historically. colin: diesel conception has been declining, gasoline conception has been growing by leaps and bounds. i don't think soon as -- i don't think it is as one-sided. seen oil prices moved sharply down your today. metals prices are not. the cr be raw industrials index, which isn't created by futures, has been increasing over the past few months. i know that the demand story is all one-sided. the industrial stories ahead win today, but the global consumer seems to be doing fairly well in gasoline demand has been strong. stephanie: earlier today, our colleague in london spoke with bps ceo, all eyes are try to figure out what companies will survive and thrive through this depressed rate cycle.

>> at 60, we can balance the books effectively. that number is coming down now because supplier costs are coming down. there is deflation. we are dropping our own costs down. that number now looks like it's not 60, we have targets below that to be able to balance the books. o.b.p. -- bob dudley of bp. are you focused on u.s. production? a report the friday before martin luther king day. colin: as a professional forecaster, john makes excellent points. we have to keep in mind that we already know that there has been a major drop in will count and in drilling activity. the one statistic i can point to , massive, over 60%. the one number out of the report that jumped out at me is the federal reserve says that in

december, u.s. oil and gas extraction was down 10% year-over-year. if you look at the doe numbers, they don't show that drop yet. and you still have a falling oil price. this is an incredibly important leading signal to rate it tells you that the demand is probably not going to be 1.2 million barrels a day that the iaea or other reasonable forecasters have been expecting. you throw in all these ideas that unemployment may be dropping and other cyclical integrals are basing, you have to ask what is the probability of a recession, and it is high. stephanie: way to end on a high note. matt: it is tuesday morning. john down from fidelity measurement and colin fenton of blacklight research joining us talking about oil. shares of syngenta up on news ina mayn china -- chemch be acquiring them.

shares of michael kors up big in early trading. the cup in he sees 2016 sales of the top end of the range -- the company sees on a 16 sales of the top end of the range. stephanie: they got hit hard last year, saying they saturated the market. maybe not. ♪

vonnie: welcome back to "bloomberg go." ups reported fourth-quarter profit that beat estimates. the big reason? the successful holiday season. the previous two years, ups has been plagued by late deliveries and other problems. two of the biggest names in jet engines are in a patent fight. general electric says ideas used by another company or developed

in the 1970's. pratt & whitney is not commenting. the automaker has decided to , the cars to be shown for the first time tomorrow at an indian auto show. ziczsay it will keep the name for now. matt: the developing story, china national chemical is nearing an agreement to buy swiss pesticide and seed maker syngenta for close to $43 million. it would be the biggest acquisition by a chinese firm if it goes through. chairs of gin then chat -- of the syngenta trading up. they could be trading up a lot more, the offer is about 470 francs, now they are trading at 400 francs a share. leaderr cultural team

joins us now. this is an exciting deal, it will be chemchina making the biggest chinese takeover ever. >> it's been a long time coming. we first got wind of this last year. syngenta, wed to realize this consolidation had been brewing for a while now. did monsanto want in on this? simon: they did. and each time they have been robust -- rebuffed. they had this big pipeline of products, they put in place a really drastic cost-cutting plan. are reasonably confident. matt: just to be clear, the story that we have got from people familiar with the talk is that syngenta has agreed to go with chemchina. withif monsanto comes back

a sweetened bid, it's kind of a done deal at this point. simon: it's difficult to see monsanto going hostile in this situation. it seems like a kind of drifted into the arms of the chinese. this way, the chemchina deal is, as i understand it, syngenta will still be whole. matt: michael murray lately has been talking about -- stephanie: he's one of the most well-known characters in the big short, a guy who went against all of his investors, is no shoes and drums and said the end is coming. matt: he said he was going to invest in water. and he has decided that to invest in food as a way to invest come as a proxy for water. you need a time of water to make food and beverages.

400 bottles of water make one bottle of wine. chemchina is also going big on food. china in general needs to get ag products in. simon: they have a problem. you're on your, declining arable land. years, one of the priorities is to develop biotech vector for food. at the moment, they don't use genetically modified food. that has to change. they are going to increase and not even maintain efficiency for food, because that's kind of a disappearing prospect, but at least keep a lid on the amount of imports they need for food, i have got to help their farmers genetically modified seeds and pesticide, weedkiller, that's all important for them. stephanie: simon, thank you for joining us. ownbirds on -- bloomberg's simon casey breaking down the chemchina deal.

david droga taking on the super bowl in the latest world of advertising. and keep an eye on this, steph curry was talking to me about the world of connected fitness. oppenheimer initiating coverage of the stock with an outperform rating on the $25 price target. extraordinary. rough ride tovery raise additional dollars. ♪

stephanie: you are watching "bloomberg go." and we are talking super bowl. obviously, super bowl sunday is almost here. for the millions tuning in, it's not just about the game, it's about the commercials. linear tv seems to be out and streaming is in, how to advertisers justify spending $5 30lion on a 32nd spot? -- a

second spot? david droga is here. i feel like the whole super bowl ad phenomenon is kind of 1980's style. is it really that valuable? david: it's a crazy glorious time when the population does care about advertising and looks for it. it's not just in isolation, where was before. these to be just the commercials around television. obviously, that is the pinnacle, but now there's an entire ecosystem around ads are running. it's a ludicrous amount of money on a spreadsheet, and i think of ad is bad, it's the biggest waste of money you've ever done. many of us really watches linear tv anymore with the exception of financial news and sometimes sports. is one time when literally everybody in the whole country is watching linear tv. probably one of the only times in the year. david: quite possibly. that's why they bring it.

fy brands that don't spend that much during the rest of the year pull their resources and put it on. they figure they have one shot at the title. but it also does live online massively now. , there's that trends more newspaper articles about what is winning, what people like. there teases now. it's crazy. stephanie: their teasers for commercials. budweiser spends more money than anyone else, do they need to? people who watch the super bowl or drinking budweiser anyways. david: it's as much about muscle memory. if they don't go there, they don't want their competitor to go there. it's edging out the competition. but regardless of how much cash is thrown at this, there are always a few things that resonate. aree are a few things that invisible. , a watch a lot of their stuff on social media. do you have to have a campaign that spreads across media platforms?

is it ok to go with one big super bowl commercial and hope it goes viral? david: you want something with multilayers, but for the super bowl, it's a one-shot thing. if their idea is we're going to have glorious puppy is running, they run with it. they keep it pretty blunt and simple. which is why it's getting missed a lot. seamanie: last year, the -- the seam was emotion. we haven't seen many ads yet, but what stood out to you. ? david: lester year was much more wholesome and heartfelt. year was much more wholesome and heartfelt. we wanted to get dirty, this year it goes back to comedy. that's the default setting. this year, it's different than any other year, it's like the celebrity bowl. i think you'll see on most every commercial except maybe one or two have a celebrity in them. stephanie: scott mayo is the

center of one. david: i didn't say it was good. one person celebrity is another person superstar. but they all go in them now. it used to be brands would spend a fortune to get celebrity, it was all beneficial for the brand. you shouldties say be in a super bowl commercial, it's good for your brand as well. that's what you see from a plus to retro celebrities. they are in all of them. stephanie: that's a really nice way to quality list celebrity, a retro celebrity. , you live in my heart forever. david droga is with us for the hour. next, we talk real superstar steph curry. stephanie ♪

matt: will come back to bloomberg . -- welcome back to bloomberg . we are with david drug.

we will go to the first word news. vonnie: the spotlight is in new hampshire were the next presidential primary will be held a week from today. sanders lost to hillary clinton in the democratic caucuses by just 4/10 of 1%. republican ted cruz one in an upset against donald trump and marco rubio had a surprisingly strong finish in third, just one percentage point away from trump. the world health organization has declared an outbreak -- the outbreak of the zika virus a public health risk. it has been linked to birth defects. the who says the first priority is to control mosquito populations. has been tourism devastated by suspicion that a bomb took down a russian jetliner. according to numbers, the number of tourists visiting egypt in

december plunged 41% from a year ago. the october crash led to russia and the u.k. restricting flights. stephanie: yesterday, i had a one-on-one with the nba's reigning most valuable player. how tv dealsg him and endorsements have affected the heart of the game. this is the business of being steph. >> the spirit of it and what we do as the players, that never changes. and itut to play and win does not matter how many people are watching or where the tv money is going. that part of the game will never change. stephanie: how do you see the business changing in the next five years? >> it is going global and whether it is in asia or india or europe, we find more and more

people following the lead and being attached to it. we have done a great job of catering a lot of things we do in the states to make it more appealing to the worldwide audience. many people look at you as an undervalued assets. you are the fifth highest paid player on the team, does that frustrate you? a great opportunity to play the game and take care of my family. i think everything will turn around. stephanie: when you were a kid and started playing, or you the best on your team? >> not even through high school. i was always the shortest and skinniest kid and had to work for everything.

stephanie: how did that change? year, -- it was just a moment like all the work you put into it and it definitely just clicked. i think aboutt makes games or laker games in l.a., port said, you have all the movies i -- movie stars and new york has all the business stars. do you have the tech stars? >> yes. i knowtheir name and what they are about, but more and more, you see them getting highlighted coming to the games and becoming those marquee celebrities that come out to our games and support. stephanie: from a business perspective, does it make sense for an arena to be in oakland or closer to san francisco? thing isk the bigger

about having a state-of-the-art arena. it could be anywhere in the bay. is going to be special for the entire bay area. stephanie: come next year, is that the right time to renegotiate even though your deal is not up? >> we will see. it is all about timing and each year is different. we will see what happens down the road. predict, but i've always said i wanted to stay in the bed because i love playing day -- in thee bay because i love playing there.

you have to assist that assess the situation as you improve. --ron is stepping up because having that security is great for some players. stephanie: do you want to bring other guys or women onto the roster and make a bigger under armour team? >> 100%. the partnership we announced , it is hopefully for life but i'll especially the next 10 years, being able to across all the different sports. stephanie: how do you prep for a championship? >> i was taken the approach of letting him be, i was going through a series of changes myself. he is so locked in and focused. what thing i did tell him was

there is nothing special you be the same panthers team that got you to the super bowl but enjoy the moment. stephanie: when you were getting ready for your championship week, what did you eat, watch, listen to? >> i tried to keep everything the same. you don't want to cite yourself out. pscyhycheurself out -- yourself out. stephanie: does your wife make you something specific before each game? >> we have all sorts of pregame pastas that she will mix and match. i take a two hour nap on game day and i get that fresh smell of something that she's whipping up and it is really good. stephanie: you are not visualizing the game, you clear your mind? >> i go out to the court and take about five minutes and stare at it and visualize what i will be doing and the game plan

and seeing things happen before actually step on the court. this is not charles barkley basketball anymore where said i don't need to the icon or an idol. you have become one. >> it is basically just me being me. liferetty public with my and the things that are important to me. my family is included in that all stop stephanie: what is the best advice you have ever gotten? the trueher told me show -- true sign of a man's character is how they treat somebody who can never do anything for them. stephanie: what is your guilty pleasure? i have the biggest sweet tooth in the world. stephanie: if not basketball, what would it be for you? >> i would try to be on the pga tour. that is my second love, i would

love to pursue that had basketball not been in my life. stephanie: tom brady loves basketball. me, tom brady, steve and president obama. i played with him before, i'm bringing him back for a rematch. david: he played golf with president obama? i wonder which one was more excited. stephanie: i would expect steph curry would be better than the president of the united states, he probably has more time to play. david: you think he is better at golf? stephanie: when you like to think that staff has more time to play -- that steph curry has more time to play?

it was a guy that is the highest-paid player on his team. can he be the leader of his team if you are underpaid? >> i think the whole thing going on in his universe is he's getting better, take a daily. he is probably the best thing that has happened to the nba in 20 years. david: people say he is the next jordan. arguably the best shooter ever, but he has changed the game fundamentally. he ways a tiny bit more than me. he is donating games -- dominating games. one thing that is key, he has always been an underdog. he was not the best on a team growing up, he did not get a scholarship. matt: that is another key. >> it is not just

one-dimensional as in just -- he is an interesting and nice guy. to dominate, you don't have to be an aggressive bulldog. he has an interest outside of basketball, he has a family life, he's very likable. he's a killer on the court, but he does it with such joy. important is it for one brand to be connected, he has under armour and connected fitness, this is a new world. >> every brand wants some of his halo effect. , tell me one guy kid who doesn't like steph curry whether you are a cleveland fan or a miami fan, everybody wants to be him. everybody wants lebron on their team, everybody wants to be steph curry. i think it's because it is

a possibility. he's only 6'3". his swagger and the joy he puts into it and watching them play, it looks like he is in the backyard just enjoying it. stephanie: as a creative, was he an easy story to tell? 0 >> he's the story, we are just trying to help along the way. it's intimidating when you have someone so unique because you want to do the right thing by him and that he said, he is not defined by basketball. stephanie: out of this guy sign my child's head with a sharpie yesterday. i did beat him in free throws. word to the nba. don't knock out 5'4". matt: she can also shoot a teacher can -- t-shirt cannon. stephanie: let's also -- matt:

let's also talk about oil, took another leg, down 4.5%. today and yesterday combined, the worst two days for oil since november of 2014. stephanie: exxon and bp earnings today. a better picture when we return, talking canada. ♪

matt: welcome back, next hour we will hear from one of the largest credit focused alternative asset managers in the world, tso capital partners -- gs oh capital partners. ♪

. it is alive and well in the 2016 election. in this importance to the campaign, how to the current candidates refrain themselves to secure victory? david, i know you were working with hillary clinton, what is her approach to branding because many people argue she is over branded and over calculated. david: you always want the personality to come through. she is very familiar so people feel like they know her. it is getting her personality out. she is very consistent and strong and she is super smart. it is reassuring people she is the right candidate. the onlynuinely candidate that could be anyone the republicans could put up. the idea that these guys

are saying what they think and what they mean as opposed to hillary who is clearly choreographed and rehearsed. i think the experience makes you more guarded with how you say things and there is a gunfighter's avenue -- attitude. with hillary, everything was planned out by a huge team of advisers. living her guard down more and more and that is part of the plan so people can see more of who she is because people know what she stands for. with bernie, there is no question that there is something magnetic about him but that speaking the truth attitude is only going to get him so far. matt: he won have to vote in iowa. will: it's a start and i not speak ill of data -- i will not speak ill of him. i think what happened in iowa is quite revealing for trump. the height is not living up to the actual tangible.

he reminds me of a summer blockbuster song, like the mac arena. you can't get it out of your head, but at the end of the summer, you think that is a shitty song. matt: when you are talking about the mac arena, it's fair. usehanie: we didn't mean to profanity on television, especially at 8:47 a.m.. the brand of donald trump has one people over. it shows that people are tired of the formula of politics. there is no question. this is about personality more than policy and he is saying things whether or not he believes them, but with attitude that people feel like he says i don'tthinks and believe there is a lot of substance, but the personality is interesting because it rubs

up against the sterile nature of every political campaign of the last 40 years. stephanie: when he is at a debate, even when not speaking, you are looking at him and talking about him. matt: we are in a celebrity era. everything is about the celebrity of everything and that is what we bought into, he is like a force of nature where he goes and what we think he is. i think that is why people want to go to his rallies but don't want to vote for him. it tells you a lot. matt: definitely a shocking result. david: people are drawn to this sort of instant gratification of the height and the celebrity. stephanie: that means the kardashians could be the next president. matt: some people would vote for them. tot: we will talk about how reporting better than expected a parent of google. will the tech giant past apple in market value as soon as the

bell rings? stay with us. ♪

matt: welcome back to bloomberg . alphabet is poised to pass apple, becoming the most viable company in the world. shares are up after better-than-expected earnings. paul kedrosky joins us now from san diego. david is still with us. paul, i want to quickly touch on the growth that we are seeing out of alphabet, google alphabet. the street is very excited about it. is this the kind of growth that is sustainable? >> it is, which is remarkable given the size and scale. some three-year-old

startup, this is a company that is 15 years old. reason for that, the engine underlying this is closer to the ad market and i am it has to do with the fundamental shift from traditional advertising off-line to online but in particular, the shift toward mobile ads were something like 8% of advertising budgets are allocated to mobile but people spending in excess of 25% of their time in front of the little screens and that shift is something that google is really sitting on top of. is this simply a great story of an advertising platform bringing in millions of dollars and we spend too much time focusing on the possibility of wireless cars and the investment in artificial intelligence -- of driverless cars and the investment in artificial intelligence? >> this is about the same business as ever for google

which is advertising, the real story for google for the better part of a decade. advertising budgets are shifting rapidly to mobile and her a while, people thought that would pass google by. people using apps like yelp and not searches and so google would not get a chance to put as many ads in front of people and that is not the way things are panning out because of the success of android. tradingth any company at a discount, mobile advertising we saw from facebook is becoming huge. is it going to get on the same level as desktop advertising? david: vigor, easily. -- bigger, easily. there are more searches on handheld devices already. there is no question. when they were to where it becomes more intimate and contextual, they can charge a premium for it. stephanie: why is this the scene

for facebook and google and why twitter is the achilles heel? twitter has not quite worked out how to make it contextual as well and twitter disposablee of a platform than some of the other things. the most trending topic on twitter right now is the turmoil in twitter. they have not worked out how to serve yourself. stephanie: the number one trending thing on twitter is the turmoil within twitter. >> that has gotten to the point that i actually block on twitter and new all discussions of because it gives me a headache but it cleans up the newsfeed. it are of the people on pretty narcissistic about the service itself but nevertheless, it remains a remarkable service even if its growth is largely revenue because of improving ad rates, not improving active

users. matt: i saw in a note this morning from pacific crest that moreer's business is worth than they consider yahoo!'s core business and like three times what yahoo!'s core business is worth even though twitter has 360 million users every month and yahoo! has one billion users every month. does that make sense? there is a long list of things more valuable than yahoo!'s core business. twitter business has a network effect that is more valuable because more people use it and it has synergy. god who has no synergy. the size of it does not matter because there is no interaction among those various usurers -- users. turnanie: how does yahoo!

it around at this point? it cannot find a positive headline. david: if i knew the answer to that, someone could pay me a lot of money. that is the thing. i don't know what its core business is at this point. it feels like it is an island compared to some of the more exciting platforms. twitter has relevance in my life. i'm not sure yahoo! does. paul kedrosky and david, thank you so much. coming up next, the gso partners. ♪

stephanie: we are about 31 minutes from the opening bell in new york city. you are watching the third hour of bloomberg . i am joined by matt miller. matt: two very special guests as

well joining us. richmond. and darren stephanie: welcome, we a lot to cover but first we will give you some first word news. the president of campaign in iowa is over with surprising results. republican vote while hillary clinton edged up bernie sanders. ted cruz upset donald trump and marco rubio did better than expected. here is ted cruz last night. >> tonight, it is a victory for the grassroots. tonight is a victory for courageous conservatives across

iowa and all across this great nation. failed hillary clinton to achieve a decisive victory in the closest iowa caucus ever. two candidates, mike huckabee and martin o'malley have called it quits. heads toof the field new hampshire where the primary is a week from today. the fbi is working with a multiagency team looking into the alleged contamination of flints drinking water. officials have not said whether criminals or similar charges might follow. former allies of new jersey arernor chris christie asking a federal judge to throw out charges. attorneys say the charges are based on vague laws that have been --

the two were indicted last spring on wire fraud, civil rights and other counts. julie: we have futures indicating a pretty sharp open, down by almost 1%, double the losses we were seeing a little bit ago. it has a lot to do with what's going on with crude oil prices. we were earlier seeing it down and now it is another leg lower, down by 4.5%. there does not seem to be any specific catalyst, just as we saw last week, a lot of interpretation about the weekly inventories report. oil charted versus the s&p 500 for the month of january heading into february and we can see once again where we have been talking a lot about a relatively close correlation. there have been days where it seems like there was going to be a decoupling of the correlation and then it comes right back into line so that is what we are

seeing once again and of course we have big earnings reports on the oil for this morning. bp reporting that 91% drop in profits. those shares are trading lower and exxon mobil saw a big drop in its profit as well. it beat estimates, not helping the shares. it's all profits fall by about half, typical of what we've scene of many of these energy companies. google is the other big earnings story come out with its earnings yesterday. really getting it out of the park with at risk going up for google and then cutting costs, helping them beat estimates on its bottom line. stephanie: it is time now for the three stories that matter most of the markets. syngenta trading up after

reports that china is close to bind the company for about $32.8 billion. we learned of the deal could be announced as early as wednesday i want to bring in david -- jason: it is an exciting field, a hair-raising moment. this is an anti-consolidation in a way, it poses some real threat to the at can space. stephanie: what do you think of this deal? >> i think agricultural commodities are challenged and if you are taking a long-term view at the chinese, it is probably a smart trade. i think it is a good thing for the market. stephanie: china are being a buyer has to be unique. lizzie the chinese taking their money out of china and mother you are talking assets like the

waldorf or things like this, they want to put their money elsewhere. >> we are seeing that trend which is pretty prolific as the chinese by infrastructure and assets and commodity assets and it is opportunity for them to diversify into u.s. dollars. do you expect more out of china in the ag sector? they don't even have genetically modified seeds yet and they have to feed a couple of people. -- couple billion people. there aren't a lot of other properties to go after, you have some smaller players in germany and take of u.s., but there is not a ton of things, it is a very rolled up space and now it is sort of a wait and see how the commodities space plays out and what the pressures there look like. not a ton more of obvious target on the ground. matt: thank you so much.

two,oing to go to number oil, plunging for a second day in your the lows of the session. you can see it down, 10%. these two days of traits have been the worst since november of 2014. well over a year. has seen oil affect a business, especially in the business that you guys are in. do you think this is a time where you start looking around for deals? jason: we have been active in the energy sector are several years. the most here is -- recent balance was on speculation and not anything fundamental. we think is going to take some time for this to work itself out. when you have big cap earnings so dismal like we saw, these are companies with much higher cost to capital. doeswill struggle and it

not matter whether oil is at $30 or $40. a lot of these businesses are in trouble so we are being cautious but finding opportunity, it is just a question of when you weigh in and what is the highest. stephanie: i feel like it was this time last year franklin templeton was making the same at $70 rightbuying -- prices and then we blinked and bonds are trading at $20. the real opportunity is to go long and short and try to take the commodity out of the equation. stephanie: how can you? darren: there are plenty of opportunities for people like us who are really steeped in credit investing to put together a hand selected portfolio of very high quality names and good locations and names that we think are very vulnerable to low commodity prices. stephanie: this is a whole new world.

this is not the kind of thing you can just go longer short in. what you were talking about is deep distress fundamental research. there was not a great tell you in having are paying for that in the last five years. darren: we have been doing this for a long time and over the 20 years i've been doing this, we have watched the telecom sector implode, the auto sector implode, chemicals, housing and home builders and now we are watching the oil and many of these companies should not have been financed like the telecom sector in the early 2000 and it is a natural weeding out. one of the things that gives us hope is that the commodity itself is not as over some line as some other commodities we look at. by some estimates, it is 3% oversupplied, which means it is going to go through a natural period and there will be winners and it is not clear when the bottom happens but we are excited about the opportunity. stephanie: number three, not

very exciting. shares are trading down this morning after the banks wealth management, the crown jewel and investment banking businesses flunked in the fourth quarter. we sat down with the ceo. i think that when you look at the dynamics of the fourth quarter and you look into our -- you could see a train continuing. there is a high level of risk aversion. people are happy with the asset allocation in general but they are paralyzed by this high volatility and also all the geopolitical news they see. >> we get it, regulation makes things hard. we knew they -- we knew that already. another quarter where it is not working. what the you make of the financials? jason: it was brutal.

your point with regard to regulation. market participants are scared and what they are scared of is pulling money out of the market and that hurts the wealth management business and that will continue until we see stabilization. darren: investors also knew this was coming. matt: you can access this at home. puts theline shows -- calls so five times more training than calls, it's exciting. people new to some extent this was coming. what do you think about the comments that investors are more spooked now in the equities market than they have been since any time? to thousand eight darren: this is a very challenging time, you are

talking about and engine of growth in the economy with china and the emerging markets and we are seeing a real slowdown on both fronts which is giving investors pause. you are seeing the credit markets which is an awning -- anly warning sign and indicator of recessionary effect but it is no surprise to people individualt the investor is just tired and scared and searching for a home. stephanie: are you have more heavily weighted in cash today then before? jason: we are sitting on more cash. we are being patient, but we are definitely finding opportunity and opportunity in the short side. in 2008, idle riverbanks taking big positions. darren: one of the things that is different now versus 2008 is the credit default work it is a lot in her than it was back then -- thinner than it was back

then. you see certainly in the credit market, bonds going into a vacuum today that were in 2008 in 2009, more orderly transition between buyer and seller and you have the magnified effect of dealers not having inventories to sell, so you are searching for that natural buyer and a natural buyer -- there is a difference. stephanie: it is hard to find a natural buyer when the ice cubes falling. we head to the break, let's get a quick check on futures. they are in the red across the board and the climbing. 1% loss on s&p futures, dow jones down 163 points. coming up next, we take a look at what's moving up as well as down in the market. ♪

vonnie: welcome back. china national kemet corporation for $32o buy syngenta billion. a deal could be announced as early as tomorrow. ae third time's the charm for company reporting its fourth-quarter profits that beat estimates due to a successful holiday season. ubs had been troubled by holiday problems in the last two years.

the abu ceo is inspected to outline other plan to cut costs and increase growth. she might end up cutting up 15% of the yahoo! workforce. that is the latest bloomberg business flash. getting sales figures in now for the month of january and very interesting, they were down 2.8%. we were looking for a drop of 3.2%, so better than the estimates. as a look through the statement and pull up some of the highlights, average transaction price was actually up $1800 this january over last january so making more money per vehicle, but they are selling fewer vehicles. they sold a lot of suvs. 5% over lastop of january in f-150 truck sales. i will continue to do it through

this but we have seen some interesting numbers. julie: other companies out with their earnings numbers. in retail, we have michael cores having an unexpected beat, the company surging. , the results are exceeding estimates and this is an outlier from many of the other retailers we've heard from over the holiday season, accessories and footwear helping drive the beat and pbh helping their brands like calvin klein and tommy helping her coming out for this whole year ahead of estimates. the company has been tightening its inventory and trying to reposition is business and that seems to be bearing some fruit. on the negative side we have theer daniels, midland, biggest corn processor, down 5.5%. they are missing analyst estimates.

soybean margaret -- margins declining as well. a couple of analyst calls we have to talk about as well. we have been mentioning twitter which has been volatile on speculation on what might happen in terms of a take-out, being downgraded to sell this morning. netflix on the flipside being upgraded on the opportunity for international expansion. coming up next, how blackstone's credit arm is to put more than $15 billion -- in dry powder, how they will put it to work. ♪

stephanie: you are watching bloomberg and we are talking about my favorite topic, credit markets. credit investors are notorious for their pessimist -- pessimistic nature. energy companies are under more

pressure. how do investment behemoths like blackstone plan to put billions of dollars of dry powder to work? of last year, people were panic that behind the market was forecasting that -- what the rest of the global market would look like and we thought it was going to be a disaster, beginning at energy comprised ready percent of the market. i look at high-yield out there and they continue to be well over some arrived. give us a real picture of what's happening. qualityyou have a high double yield and those of the deals that are getting -- if you are an issuer of double these and you -- there is a large appetite for that in the high-yield market. -- anything week commodity related, you probably don't have access to the regular way high-yield market right now.

you have about 25% of the market trades below $.75 on the dollar in the have about 45 to the market trading -- it is really two markets and we are focused side. lower stephanie: how much of the market is pushing into lower credit high-yield? darren: energy gets the most airtime but you are seeing reach ale, you are seeing table, you are seeing other areas of tech meet at -- tech media and telecom. it is spilled out beyond just the energy, metals and mining complex. this is not the similar to what we saw in the early 2000's. stephanie: seeing that you are seeing that it is spreading, it is retail that you said would do so well on the heels of oil prices, but it is not. could we really be facing a recession? like at the data in the u.s., it is flashing a

recession and i think it consumer and the service economy that continues to power ahead and we have had subpar growth but growth nonetheless and for the companies we are looking at, they are very vulnerable because most of them are starting life very highly leveraged. jason: matt: we are seeing -- we recession warning lights flashing, but it's not stopping you from putting your dry powder to gives. jason: we tend to be patient investors, looking out several years so waiting in these situations where the baby has been thrown out with the bathwater in a lot of these industries, we think it presents a great opportunity. earnings are weak in high-yield companies. ishink what you are seeing the s&p is doing ok, but those are the 500 biggest and best companies in the world. when you talk about smaller businesses, they are suffering.

do you agree with larry who says we are growing, because of slow growth environments or do you need to agree with one? darren: there is probably middle ground and i think what we've learned from the market is that on the back of the 3rd avenue fun shut down, the market is more resilient than what they would have figured. etf market has been more robust and better able to handle liquidity pressure, but i think karl is right, many companies are over levered and we are not treating at the right spread level. i think the fed has pushed people beyond their investing in the zone, further out risk spectrum in the hunt for yield and the high-yield market has relative value versus absolute value and the market has been about absolute return it relative to risk -- return

relative to risk. stephanie: was 3rd avenue shutting down a reflection of what's happening in the market or of investors who should not play in a market in a product that did not offer them the right kind of liquidity? back to liquidity, there is not liquidity in the market there was in the market preacher thousand eight. it will continue to get worse and looking at 3rd avenue's portfolio, there were some names in there that you would think are relatively large and they could have traded. i think we own some of those names and he would've been interesting in buying down several points but that was not -- there is -- that presents opportunity for patient investors over a long time. matt: how much has the debt

spread outside of that? if you take out the energy picture, how bad does it look? is about 15% of the market, it was down 20% last year. it is down to 45% last year, that is not just energy. metals and mining is worse. darren mentioned several other sections. anything highly levered is down a lot and it's not just high-yield bonds. look at mlp, they have gotten crushed. stephanie: do you like retail? jason: the ramparts we like very much. stephanie: stick around, we have more to cover. ♪

matt: will come back, we are moments away from the opening bell. futures trading down about 1%.

the drop in oil is going to be weighing on some of the biggest layers in the s&p and the dow jones industrial average. we are talking about the record loss over at bp. they had a $6.5 billion loss. exxon made money but posted its sixth straight decline. exxon results were better than what the street was looking for. we bring in vince piazza. the call is in about an hour. what do you expect to hear from management? >> the fourth year results will. be largely overshadowed by the views for. 2016 we will get more insight during the 2016 analyst day that will occur in march but to think the highlight, number one is spending and also the production for the near-term 2017 and beyond. for 2016, the end of the year,

2015, spending roughly -- will likely come off significantly from that $31 billion. that should allow for the significant cash flow being thrown off, looking at $27 billion for this year that will likely come down some more closer to $23 million. ,hen you think about production they closed out the year hitting their target roughly 4.1 million , 2016, thatday growth will largely be somewhat anemic despite six projects coming online in 2015 and six more coming online in 2016. forhe cash flow generation 2016 covering that dividend or close to covering the dividend can also the production cadence for 2016 through 2017.

matt: thank you very much for that. thatt to break gm because maker is coming out with january sales up half a percent. the estimate was for a drop of 9/10 of 1% so gm actually showing a grow and we are looking for a drop. ford came out earlier beating estimates with a drop of 2.8%. the sun growth even though we were looking for a drop. chrysler with growth even though we were looking for no change. all the major carmakers have come out and beaten estimates in january. very interesting because not only did january have two fewer selling days than the same month last year, but we had this massive blizzard and i know you hate using weather as an excuse, but we did have two important days, saturday and sunday last you or two weeks ago where were unlikely to get out of your house and go to a car lot.

tom farley must've said quick, get here right now we had a couple of calls. code maker, at least it'll have an excuse but the carmakers do which is why it is interesting that they continue to beat. no matter how good the results are out of carmakers, investors are still selling their stock. it is only interesting if you work there. stephanie: how closely are you looking at the earnings of each company because it is like we are getting back to fundamentals. in the last few years, we were not in that. we always look at fundamentals of individual companies that we invest in will look at bottoms up an overly the macros. we are very focused on the companies in the capital structures. , theregard to the autos dollar sort of peaked.

how much one declines, one -- we will see. matt: i look at ford over the last five years, total return, a drop of 18% as sales go like this. waiting forbody is the rollover in sales and it just not -- it just has not happened. sar was very depressed coming out of recession see you have a pushedpent-up demand through the numbers and overtime, that will start to leak. darren: you have to look at the quality of auto sales as well. more sales are going into the auto rental companies and so that speaks to the quality. stephanie: i don't understand. darren: they go into fleet. they are sold into the fleet of hertz. matt: before the financial

crisis, carmakers were making as much as they could and getting rid of a lot of them at home margin to rental fleets. they curtail that after the crisis and got their behavior in order but you are saying they are losing it again. darren: the issue for the rental companies if -- is it does residual values come down. when you saw autos and rental companies, it makes carlink the push, why icahn lips so much and the massive investing we are seeing in companies like uber. this is the year we are not -- they have that fear of missing out? that it has now shifted to the fear of getting hosed. this is the year we will see more and more get unicorns. darren: this is not our area of expertise. stephanie: in your world, you do have a difference between private and public investors. darren: there is more value in

findublic markets to return and i think the unicorn affect was very much a function of people looking for growth and trying to buy growth through some of these disruptive channels which are yet to be proven business models. who knows which ones succeed and which ones fail. right now we can go back to the public market and find value once again with real companies that are actually powering ahead with real earnings. matt: levy quickly give the viewer an update about markets. we're looking at a drop in the dow jones industrial average of two -- 200 points. the biggest losers are goldman sachs, chevron, caterpillar. we are seeing markets moved significantly right now with the s&p falling 1.1%. google does not seem to be able to stop the slide in the s&p or nasdaq but it is up report 5%.

i want to talk about the company that is now called out for that. we have cory johnson standing by. alphabet.y google and does the name change annoy you as much as it annoys me? >> i'm trying to stay with the times and maintain the times -- and maintain my youth. it is a different company than it was a year ago as relates to numbers. what we saw was fantastic topline growth. alphabet is going to show us all the other stuff, all their grown in internet and wires and drone making in cars, the focus is on the advertising and the growth is fantastic. euros a basis of a 25%, get your head around that. this is one of the biggest companies in the world growing its top line by 25%. the thing driving that was lots

of clicks on lots of ads and all kinds of places. all caps, in mobile, on desktop and the result was that growth is just a fantastic number for what is still called google, part of alphabet. stephanie: when you look at the our of google, even if it is a name you're not involved with, do use it these are companies that came out of nowhere, have a larger market value than anything? how does that affect your overall investing? darren: we care in the sense that there are all kinds of destructive forces of way, whether retailers or how people cloud, a tremendous number of disruptive forces and you have to see companies continue to reinvent themselves and the companies that we invest in our two levered to make the transition.

andtart with the platform look at the cash it is generating and to what extent can we reinvest those cash proceeds into other business lines for growth? stephanie: amazing to consider tot they are too leveraged jason: -- the fact is those of visionary companies and a lot of those companies in high-yield market are sort of branded by what they were and i think hp is an example of this. a exampletting up is of this and many of transition is -- darren: you rumor with a directory companies were front and center and market darling. now, nobody wants to own them. we took one directory company. was formerly known as

a yellow page company and we turned it into a digital media plot warm by buying and acquiring one-off products with cash flow that was being harvested from this digital media directory and now it is a digital media company and the goal is to arbitrage the multiples between the old and aory trading high-growth digital media platform. jason: transitions are hard in the public market. stephanie: do you want to weigh in, cory? >> they are smart to try to do so, we saw that with aol, turning their talent business into something more relevant. the companies that try to embed that into the culture -- we've seen that with google that went from a search business to a very different business in mobile. spent $3.5 billion in r&d and that is not to capitalize stuff, that his income spending and part of the

transition that is worth paying attention to is ad rates for google are falling off a cliff. the average cost for how much they get paid for each ad fell dramatically this quarter, almost to the point where they gave up. they added more inventory and took in more revenue by changing their model on the fly and i think is where the things that silicon valley companies try to work into their dna. thatve r&d spending, willingness to turn on a dime and throughout the old business model so they can stay relevant as things change with such drama, going from desktop to mobile which could have eaten these companies up. look at them to compete with cloud services like amazon, another big change. stephanie: with the exception of make that transformation, as jason said, as a public company it is pretty hard to do. we will leave it there.

be sure to watch corrie's interview with -- since we are talking about alphabet, google, we are talking about this sort of legacy versus non-legacy question, apple, with ask as we look at the half of that market, it's apple becoming a legacy company? does it need to find that next new thing and you're looking at the market cap of each company, google has now surpassed apple's market cap. something else that i want to point out while we're looking at this is the sales of the two companies. here is apple sales still far surpassing that of google. where youe example look at the discounting as a marketing mechanism.

matt: that is a stunning graph. apple sales eclipsed google sales by three times, more than three times and yet, google is trading at a higher rate. stephanie: when you look at the companies and the leverage and this kind of cash, it just breaks your heart. darren: it is a pretty stunning distinction. julie was going through the googlecap of apple and and those together a quick to about half the size of the high-yield market. matt: i want to go to julianna take a look at the broader market because in equities we are seeing big losses. julie: a selloff across the board that has a lot to do with what's going on with oil prices and a correlation coming together between equities and oil prices, also if you take a look at what's going on in the take ay market, the --

look at what's happening in yield, this is notable. 1.88% is the lowest yield we have seen since last april and it is remarkable in what is supposed to be a rising interest rate environment. this is the year when the fed said it would raise rates for times, that is not what the treasury market is saying when you look at this. fair, stanley fischer sent yesterday we don't have a plan set in stone. it is not fair to say that they are calling for rate hikes this year. >> the dot plot implied that. matt: it is not their plan, just what they want to do. they are still data dependent. everything like an what's it was moving right now, energy the worst-performing, public very

closely my financials, oil prices let's take a look at what's going on because we were talking about oil right here. apparently we don't have oil prices. matt: you do, they are down 5%. he backed your excitement about treasuries following 21.88%. darren: also to the extent you have chinese selling treasuries, i imagine where the rays would be if you do not have that selling pressure coming from this currency unwind we are facing, globally. to be, this is a risk that environment when you see treasuries plunging below 2%. this gets back to the initial question which was with retail investors, what are they so afraid of? they're looking at the same data as we are and they are trying to make ends of it and i think everybody was of the view that we would be at a higher rate environment by approaching 3% in

the not-too-distant future, certainly the dot plot would have led you to believe that and with rates collapsing back as they are, especially with some unwind of the currency reserves, it does give people like us pause to say hey, we probably should be a bit more defensive and have more of a hand-picked portfolio at this point in time. i will say in the high-yield market, with trends approaching 800 basis points, this is usually a time of flashing excitement for people like us to want to buy because historically, you were well paid to take that risk an expected 20% returns within one to two years. jason: that is how you know when you are a high-yield geek. stephanie: excitement.

especially when coupled with the fact that all warning signs are throwing retail investors and pushing them into the relative safety of government debt. matt: the dow is down 231 points. when we come back, we will talk about martin shkreli. he wasn't the only one hiking drug prices in 2015. we take a deep dive into the numbers of pharma and looking at pfizer's earnings. ♪

matt: i am here in the green room. tomorrow, we have a great lineup.

vonnie: welcome back. -- beat estimates. in december, dow agreed to the merger with dupont. two of the biggest names in jet engines are boiled in a patent fight. claims turbinec technology is this an ideas developed in the 70's. ge wants to overturn latins --ed by unit of technology patents owned by united technology. einhorn's main fun and greenlight capital fund that fell 20% last year. the greenlighted gain more than --

einhorn -- bloombergur latest business flash. matt: drugmaker pfizer reported fourth-quarter earnings that beat in a less estimates although the company was boosted, the bottom liners boosted by a new cancer drug and thataccine, if it syrians serious currency headwinds in its 2016 forecast below expectations. how much is riding on their deal with allergen? drew armstrong joins us to go through the results. >> pfizer has been trying to return to growth after about five years. of sales going down. they have things gone off patent like lipitor. $160 million is going to take a long time to close, we have to wait until antitrust can get there and it is the thing people are waiting for. in some ways, the results of their posting matter but they

don't matter as much as what the company is after this massive megamerger they will do. matt: we see the one year down 6%, today they are down even more. what is the reason to that on this company? >> the reason people want. to bet on this is a couple of things. they will potentially break up into two smaller and nimbler country -- companies. when you look at pfizer and compare it to its peers, it has not performed nearly as well over the last three or four years. the future that company is eventually going to be able to command those types of evaluations you get out of a bristol-myers, companies that have done really well in big pharma where pfizer has not gotten that respect. matt: thank you very much for joining us. more from stephanie's interview the goldencurry,

state warriors, what he sees himself doing outside of basketball, coming up next. ♪

stephanie: darren and jason on the only superstars today on go. steph curry was m.v.p. last year, but what about life outside the game? >> i have a startup myself, starting with one of my teammates from college who is at stanford right now. we are getting our fat wheat -- feet wet in the tech industry. it is a beautiful journey to go through the ups and downs. we feel like we are up -- onto something. stephanie: you both love steph curry. this guy is a winner and we need your final thought.

darren: our takeaway is now is the time or a cautious charge back into high-yield. do so with your eyes wide open. this is an exciting time for people like us. stephanie: no matter what janet yellen does? jason: there is so much excess spread in a market that event fed just turn around and raise rates, that is the signal that the economy is better, i don't think that will be the case. it is kind of sputtering along. stephanie: waving the flag for high-yield. gso capital partners. tomorrow, tim grant and david erma. ♪

>> it is 10:00 in new york and 11:00 p.m. in hong kong. welcome to bloomberg markets. ♪

betty: from bloomberg world headquarters, good morning. i am betty liu. half an hour into the trading session and stocks are lower. dow is off almost 250 points following the losses in europe. oil is renewing its plunge. electionrtainty for 2017. ted cruz topped donald trump in iowa. and hillary clinton hang onto a narrow win over bernie sanders. now it is off to new hampshire. and google's alphabet prompting selloff as it is now the world's most profitable company. and yahoo! is reporting after the bell. marissa mayer is laying out her