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here's a look at how the u.s. stocks closed up the day. aplenty. s&p 500 and the dow jones up. is, "what'd you miss?" steepest loss

since its debut. we speak about the institutional interests. treasury yields push higher. 3% nearholding above its high for the year. what it means. and restaurant chains but the trend. olive garden. others struggle. now it is the wild west that is looking green. is riding high. losses reaching 26% midday. he said it is always like everyone wanted to express their one and greed through entity. it is the wild west right now for cannabis. let's get more on marijuana

madness. do institutions not want to touch it? >> we as an institution definitely want to touch it. this is one of the greatest things we will see in our lifetime. joe: how does it get to be $500 billion? we had one analyst on yesterday say north america by 2025 will be $40 billion. i am talking about the entire getd and more portly had we to 80% of the world using cannabis. it is not you smoking a joint in your garage anymore. it is thc as active ingredients. it is a huge opportunity. are you making broader bets? we are looking for best in class companies. another reason it is so unique health, technology, software.

we are trying to find a winner vertical. governments recognize how much economic benefit they can get from this. you can have one winner in california that is different from elsewhere. joe: this is the key question i have. what we have seen the last several weeks as people piling there are very few companies listed in the u.s. if you want exposure you are tilray orust buying whatever. is there any reason to think these new companies we keep talking about will actually be the ones that capture that $500 opportunity, or is it so wide-open it is too early to say? we think canopy has a lot of potential. they have a $5 billion war chest mover in newst countries. to your point there is a total scarcity and some of these valuations do not make sense. volatility is accentuated by the fact that

these are not treated that much in terms of free flow. tilway is 7th among companies in of admitted amount. 13% you can get your hands on. that is why we're seeing this wide range. how do you not lose your hat? sean: we think tilray is a game of hot potato. it is hard to justify these when you have a $62 price target, $110 below where we today, which is based on 17 times 2020 sales. these are unsustainable and unlikely to last. romaine: what is the market like -- will this tobacco,e with alcohol, soft drinks? medical andional alcohol. we think it is not a competitor tobacco. it is a direct competitor to

alcohol, opiates. 40% of the pharmaceutical market is sleep and pain. walkup --yor marijuana addresses sleep and pain. are we really going to let it,dian companies dominate where will u.s. companies dominate this market? that is the irony of these companies listed on the nasdaq. it is predicated on being a federally legal jurisdiction. those companies cannot do anything in the u.s. the u.s. is infinitely more attractive than canada if we go recreational legal. we are looking for best in class operators. --re looking for people ., goodechnology, i.p products, branding. brands,icking great great delivery mechanisms. romaine: how confident are you this pointget to where regulatory and legal

issues will be resolved? you have a republican justice department against it. the democratic justice department against it before that. what is the political climate we get to where we see that this will be legal? cannabis moves in medicinal first. 34 countries are now medicinally legal. bill is limited to potentially pass this month. small steps will get us there. there's the state tax that protects states to grow marijuana, sell marijuana etc. we think every step is the right step in the right direction. people see tax revenue and see how can we give that up. states are seeing what california and nevada are doing. sean there. up, a limited bread garden -- we're digging into the numbers.

this is bloomberg. ♪

almost time for dinner and parent company is open for business. making for the 16th consecutive quarter of growth. for more let's bring in sara. i didn't realize i was looking at a darden chart, they are doing pretty good. it is really surprising. we hear about all this doom and gloom among casual sit-down chains, they are getting eaten by fast casual. ust restaurantj 101. they had been executing the basics. at olive garden is simplified the menu, taken it down from 93

less.to 30% that simplifies the kitchen, the ff, allows them to deliver better customer service. changed their marketing. romaine: olive gardens is not business. : they have longhorn steakhouse. scratch kitchen as well. they could use the olive garden play but. joe: caroline has never been to garden -- olive garden. how would you describe it? sarah: all you can eat breadsticks and salad. very family-friendly. were telling guys me earlier 2014 was the year in which we learned far too much about -- sarag: this --

sarah: the whole board was dumped, the ceo was dumped. that is when we saw this turnaround. one of the things we have seen some restaurants struggle with, labor costs,. ingredient costs have they been little -- labor cost is definitely an issue. that was a key thing today. labor costs going up 5%. when the ceo was asked, he said this labor pool is getting so tight that finding good people to deliver good customer service will be an issue for them going forward. romaine: are they at the stage

store orders to one random guy. joe: big picture, there's nothing fancy about it. we are trying to find a secret it sounds like they are just executing. that is exactly right. it is so interesting because every other success story we is tech.e

domino's is the big example of their strength in the mobile app. joe: it is not even like food.ram-friendly romaine: it can be. just offense we're instagram dependsare jack -- just on who your instagram friends are. we going to have to have a team lunch there. thank you. always brilliant to have you in town. a quick check of the latest business flash headlines. talks to buy is in a software maker for about $5 billion. bloomberg learned a deal could be announced as soon as today. gobi'sd bolster a efforts in marketing -- adobe's efforts. his departure came weeks after downgraded tilray, the

highflying marijuana stock. soared. online advertising will account for more than half of all u.s. ad sales this year. study. according to a google and facebook are leading the march. flashs your business headlines. you pointed out the fact we are going heavily online with ad sales. romaine: it is amazing how much muchminated by pretty google and facebook. theyine: amazing how much dominate the sector and how much it is hurting old media. joe: it is incredible. it is one of those things where you wonder why the media is so critical these days a big tech. i am just saying. they are saying, taking a lot of the media's lunch. so you kind of wonder. well, i think we have some ads coming up. yearine: coming up, 10

treasury yield hits of magic number. this is bloomberg. ♪

mark: the new york times reports that supreme court nominee brett thenaugh's accuser has told senate just year a committee she would be prepared to testify next week. the times obtained any mail in blaseyn attorney for dr. said she would agree to testify as long as the terms were fair and her safety was ensured. ford has accused kavanaugh of sexually assaulting her when they were in high school. demonstrators entered room buildingsnal office

to protest the handling of these a assault allegations against kavanaugh. to theof people marched office of senate judiciary committee chairman chuck grassley for a set in. some expressed stories of sexual assault. staffers told the demonstrators that the senator was home in iowa. puerto ricans are observing the one year anniversary of which test --a, which devastated the territory. nearly 3000 people were killed though president trump has disputed that figure. maryland authorities say a 26-year-old woman, the suspect in today's killings of three people, have died of a self-inflicted gunshot wound. authorities say the woman was a temporary employee at the distribution center where the shooting took place. three other people were wounded. someone sees great potential for

in rebel-held b province. an accord between russia and an offensive.ayed >> some groups have said that prepared to fight. our message to them is, i hope not -- we hope you are not going to fight to the last civilian. egeland adds that it is " toally legal and recommended speak to armed men, even terrorist organizations, to end the conflict without bloodshed civilians." global news 24 hours a day on twitter,t tictoc on powered by journalists and analysts in more than 120 countries. caroline: we are listening to

the leaderriedland, of the canadian trade negotiations. she is talking about how canada achieve theard to deal. she will be back in canada tomorrow so clearly no deal is done as of yet. yields are marching toward record highs. two and three year treasuries are at the highest level in a decade. the -- a coordinated surge. >> more of a coordinated move in rates, and i think that warrants closer look. >> look at the difference of the 10 year between the u.s. and germany. there is a limit to how much you can stretch that without breaking something in the system.

the question is what happens when it does go wider. get dollar appreciation, more emerging-market pain. it absolutely can go wider. >> i think a lot of people are pushing some technical demand at the long end. i think we could see a little bit of a re-steepener. market is due to go up. is starting to leave a mark. >> a reversal of value stocks, stocks, banks, now interest rates. i think there might be some more room to run and i think this cover as theysome have been pretty adamant that they want to slowly increase rates over time. our reporters.in it has been hard to be a treasury bear over the past few it is going assume

to get a little bit easier, at least that's the prediction. >> it was a nice few days this week but, as you see today, i this uneaseis still about just how much higher yields can go. there is still an element of playing the range. thisone is waiting for 3.12% on this 10 year, the intraday high set in may. now, yields have barely changed on the day. >> we have had this nice jump in yields, selloff in treasuries. what explains the disconnect? >> a lot of people in the foreign exchange markets are on the dollar. -- call the top of the dollar. now, it has risen so much, a lot people have piled into

thinking, how much better could it get? treasury currency yield widening and treasury strengthening. how about that between german bonds and u.s. bonds? we have seen yields across the globe push higher. >> i think that is one of the questions to treasury bears. bill gross, that is his big trade, this expectation that bonds 10 year yields would converge. they haven't, obviously. that is kind of the big question, will the ecb followthrough on the fed tightening? as a result, will that spread narrow? in may, after italy sort of blew up a little bit, that spread out tremendously. it will be interesting to see if banks followtral through on this tightening.

only that is going to allow the bund and treasury yields to get a little closer than where they are now. >> is this about a change in sentiment or about shifting 2018 to 2019y from and that is why we are seeing a the dollar? >> we are already looking at people looking past the fed meeting last week thinking, who's going to go next? we are looking at people markets,risk back into selling off the dollar. one of my contacts at bnp will -- thinkss this will pressure the dollar to fall 10% in the next months. maybe it is time to call a turn. >> you just mentioned looking past the fed, but let's talk about the fed. everybody expects a hike. what else are people sort of looking for, people in the market, to give them clues on

how to trade? >> that is the danger of these events, that everyone is looking for one thing to happen. a couple of things people mentioned our trade. if the fed starts to sound a little bit dovish on trade at potential for a dovish surprise there as well. >> when you're looking at the treasury now, a lot of people we our short duration. are we going to start to see a long-duration? is really a dilemma that is starting to form for investors. yields thatot of are starting to be centered around 3%. that is a realistically long-term rate for the fed. once you get to that number, you looking at the long-term rate. longer orrt to look

jesus -- or do you continue to short, stay safe> 'it is really hard to -- stay safe? it is hard to lose money right now when you are in two-year treasuries right now. >> in brian's market, obviously and this iss raging a secondary impact on the fx market. thank you both. now, breaking. shell set to be in talks to sell billion stake in the gulf coast. $200pany worth more than billion, a company currently money back to investors by repurchases of their shares. not been a big winner for the investors. coming up, the department of cigna'shas cleared acquisition. they are still waiting for the green light.

more from the cvs health ceo, ahead. this is bloomberg. ♪

country, as you know, about the amount of money we're spending as a percentage of gdp. warren buffett expressed his concerns. >> is very system that can check tapeworm that is a way higher percent of gdp than any other country? can we do that and, at the same productliver a better for patients? a success if it is just a cost-cutting measure. >> he's talking about his amazon andh jpmorgan. do you share his sense that we need to do something in this around to get our arms cost growth? >> we agree with that. when you look at today's health 18% ofstem, approaching gdp, if we ask individuals to describe their experience in care, many would describe it as frustrating. we have a fragmented system, a system that we believe is

a pay for service world. we agree with warren buffett's comments about the need for innovation, disruption. the combination of cvs and aetna is going to work absolutely on that. where we may disagree with warren is that we can innovate , and weupt from within can do it from inside, not outside-in. we are looking forward to getting started. >> marijuana is in the news every single day. coca-cola having discussions about things that are anti-inflammatory. world in which your company delivers marijuana-based for medicinal purposes throughout the country? >> i don't see that on our horizon today. it is interesting. we get that question.

we also get the question about recognizing the actions we took against tobacco four years ago. would we ever sell the yeah, i wouldvice say, if there is ongoing research that classifies that as a medical device or a medical product, i do believe that would us consideration in terms of the role of attacking play in our business model. i would say that is not on our agenda today. caroline: the cvs health ceo. metal braces used to be the only misaligned teeth, but a new method uses clear a liner's. of alignwith the ceo technology about disruption in the industry. >> about 70% of the people of teeth,ld have crooked for lack of a better word.

is easyisible line, it salign, it is easy to move the patient's' teeth. caroline: here with more on prognosis. i, for one, can say i think they work because i use them. they are getting some competition. >> full disclosure, i definitely as well.align the orthodontics market is really interesting. it is very fragmented. within that, the invisible orthodontics market is definitely the biggest player in space they own about 80% of market, andigner that is also the fastest growing market. a club is able to offer a

price compared aroundinvisalign system, $2000 or so compared to about or $8,000 by invisalign. they are doing that because they are cutting up the doctor. out theare cutting doctor. >> does anyone use those metal things anymore? >> i definitely still see some. it is definitely the biggest player for kids. again, the clear liner market is and it isickly definitely very popular with because they are clear, so you can't really tell if you have these on. they are definitely still popular with kids. caroline: what is interesting, i

think, in terms of this whole company, is that even though they have this market hot on heels, this new startup seemingly eating their lunch, owner is taking a stake in the competitor. 19% stakeve about a in the company right now. they invested in it twice. they are definitely seeing value. boosted their patents, too. october of last year, they lost patents associated with system.salign that is why we are seeing a lot of companies coming into this space, because they are able to do so. don't forget to check out our prognosis page on bloomberg.com/prognosis, where we report about the future of

health care and the financial news behind it. jay powell is speaking on september 27 at an event on thetol hill, the day after fomc rate decision and powell's news coverage. this is bloomberg. ♪

caroline: time for shery ahn. up, serge ibaka's debut, making it one of china's --t valuable tech companies surged on its debut, making it of china's most valuable tech companies. >> it is growing super fast. we have new initiatives because

we believe we are going to build commerce platform. i think we will become a more mature business. caroline: he has seen his wealth billion after the ipo. unprofitable company yet it reaps rewards. revenue in the past year grew about 90%. losses also tripled. in 2017, they had $2.9 billion of losses. saying, you have to think of this as an amazon. you have to be patient. >> what about competition? there seems to be a bit of a between meituan and alibaba. yes, because alibaba is in the food delivery service as is trying to do everything. reviews,very, food hotel booking, ridesharing.

it is a busy market. >> all of these companies do everything. they are probably going to app, payment service. shery: it is a huge market. even just the food delivery $1.3t in china is worth trillion. there is a piece of the pie for everyone out there. said, because this is a chinese tech company, they won't be hurt that much by trade. caroline: we just had the breaking news that uber is buying deliveroo, another food delivery company that operates in hong kong. love deliveroo. kong, housesf hong are very expensive. my favorite story today, a four in hong kong that, like awas sort of florida mcmansion, kind of a

fixer-upper. the interior is not that great. it is selling for half $1 billion. $446 million. insane property prices. rent is so expensive. we were talking about new york being expensive. i was telling people, i love new because there is so much space. >> do you know much about this neighborhood? shery: i think it is in the which has a beautiful view, which is amazing. i'm not sure it is worth a half llion dollars. >> someone is paying rent on this. shery: not someone like us. good thing they have their tech giants and billionaires. caroline: thanks.

fascinating, in-depth knowledge the hong kong real estate and food sphere. out, "daybreak: asia" and "daybreak: australia." we will talk to the president of zimbabwe tomorrow. >> economic data. japan releasing numbers for inflation for august. g day quadruple witchin for the u.s. all on the same day. >> bloomberg technology is next. ♪