ending -- we can do little to quickly? people by the end of last year were much too negative about the state of the global economy. that's not to say there were no problems and equity markets. i have concerns about maggie cap technology. caroline: meanwhile, we see a selloff in certain sectors, namely the energy and materials. the s&p 500 is up 3/10 of 1%. let's look at breaking news into the close. is filing confidentially for an initial public offering. it's a social media platform sharing the likes of recipes whether it comes to your favorite design motif. this company will finally come to the public markets along with lyft and hoover eventually -- uber eventually.

that's from the wall street journal being reported. what star deeper into the action with the markets reporters. abigail, what were you watching? abigail: i'm taking a look at the 200 a moving average. on the nasdaq 100. to piggyback on what our guest is talking about, there is the week bottom he was talking about. last year, lots of volatility. the worst fourth quarter since 2008. that pattern appears to be done. the comment seems to be right. we see symmetry flatlining below the 200 a moving average. a can o -- a company that is a buy signal, but is waning. this year's rally for the risk assets may just lose steam in the weeks ahead. lisa: i want to take a look at treasuries. in particular, whether some traders are positioning for a reversal in the downward yield a trade we have seen over the past 12 months.

let's take a look at ief. this has about $13 billion worth of assets. the short interest spiked to a record high in recent weeks, which i find interesting given the fact you have seen a rally in this debt. something to keep an eye on as we debate whether or not you are seeing a real tug-of-war with the message being sent by bonds and stocks. >> i've been keeping an eye on the energy sector as you have been discussing the worst performing sector on the s&p 500. u.s. drillers are the worst performers. likes ofking about the diamondback energy and others. sendare the numbers that the stocks falling. u.s. productions skyrocketed to $12 million per barrel last week, while crude stockpile rose for the fifth straight week. it meant oil declines for the first time in over a week, but only small declines suggesting opec and its allies are keeping and preventing them from falling

out of the market there. production may's soon be broken, again and again. caroline: thank you very much. more updates coming from pinterest. the company could expected to seek evaluation of at least $12 billion so sites the wall street journal,. still with us is michael and gina martin adams. interestingreally research today, saying maybe a capitalist for the next high when it comes to the stock market is crossed and earnings, but perhaps weaker earnings are not bad. gina: over time, it is a markedly -- is a remarkably good year for stocks. this is a 2018 research note. the peak for stocks, probably not a great year. the earnings growth produced about 4% return. previous years produced about

11%. on average, we have produced that return. the good news is, if we provide and gather some sort of confidence that things look better into the second half of this year, stocks could have a catalyst to move higher. the reason stocks have recovered is because of fed policy. on fed has backpedaled policy and reduced expectations for tighter rates that has created a remarkable uptrend and valuations. we are not had a blog -- had a lot of earnings and put. romaine: michael, when we talk about the next like higher, a lot of optimists point -- these equalot of weight indexes suggesting there is broad participation in this rally. what do you make of that? will that be enough to move this market higher, or do we need an external catalyst? michael: i would differentiate

between the market and the index. we talk about the s&p 500 as if it is the market. that index became captured by a limited number of large-cap companies, most of which are the all remainangs, and significantly lower than their highs. i think that is quite important. if you go back to your like 2000, which was a market peak, one of the surprising things you see is while the s&p 500 did poorly between march of 2000 and 2000 one, and the nasdaq did horribly, the weight index goes up about 30% between early 2000 and mid-2001, which is really surprising. what can happen is if the economy hangs in there, as you start to force capital allocations kevin trapped in a limited number of mega cap companies into the rest of the market, then it is just an index

mathematics game. the s&p 500 ceases to reflect what is happening to the average equity. i think that is where we are right now. it's not as violent as 2000. we didn't have as crazy a market as march in terms of valuations. i'm not concerned about the nasdaq losing 80% over two years, but that over concentration in a limited number of names and the idea these companies could do no wrong, and donald trump is talking about 6g and people are almost looking at that for earnings going forward. caroline: zillow has had rocky times and brings back its first ceo. this is the cofounder of expedia, and they are hoping this will gauge investor concerns -- wayne investor wane investor concerns.

so he will be returning to the floor. also have breaking news on the politics front. north carolina panel is ordering ting to u.s. the house race. this is interesting, given the fact that there has been so much discussion around what to do with it and whether to count the votes. we are going to get another vote and we can go through all of that again. a north carolina panel is ordering a new vote in a tainted u.s. house rates. romaine: one more breaking story here. hewlett-packard enterprise is up with earnings. after hours, adjusted eps for the first quarter is coming in above estimates at $.42. miss, somewhat, for the first quarter, and they are also getting a fiscal adjusted eps outlook of 156 to 156% or which is above the -- 156 per share which is above the

estimate. lisa: i did want to take the conversation about u.s. equities and the idea we are past big earnings and whether the future for 2019. i want to bring up the dirty buybacks. we have seen a record pace of share buybacks following a near record last year. gina, how much is this driving performance at this point? how much is this company buying at the top and giving a raw deal -- getting around deal. gina: they definitely got a raw deal for 2019. this year is so far a little more makes. over time, this entire cycle, stock prices have not performed well for the company's fed by back the most shares. it's really consistent throughout the cycle. investors want dividend growth, r and d spending, they want to get a return on their investment. they don't just want financial engineering to drive prices. the share prices are not driven by financial engineering.

this year, it's a short time period to make an assumption. it's a little more mixed. how do i assume a return over six weeks is due to a share buyback? then't know that, but over cycle, share buybacks have added little to stock-price returns for investors. caroline: michael, your perspective on the wave from the wondrous world of stocks and looking past benchmarks. what are the assets taking your eye at the moment? are you looking at credit, gold for example? michael: i think gold is really interesting if you think about it as a substitute for cash or noncredit fixed income. what you see is that it is starting to become competitive with cash returns or sovereign real returns across currencies, as long as you do it in a reasonable feeling of time. even at the start of the beginning of 2017 -- if you

started at the beginning of 2017, you would be up 2% now. it is becoming an interesting place to park money. is not competitive with equity markets, but as a cash substitute, i think it is more interesting. romaine: is there any concern that all that seems to be rallying at the same time -- all seems to be rallying at the same time? think you have to look back to last year and understand everything was sold at the same time. the connection between high-yield is more -- and mark cap equities is very tight. as far as gold is concerned, it went up when equity markets went down. it's continue to go up. it made a lot of money when the dollar went down, and continues to make money when the dollar went down. an asset that can navigate its way through different periods of capital allocation, that is how

you transition from the long bear market into a bull market. lisa: thank you so much. i want to reiterate the news we got moments ago. interest is planning to confidentially file for an ipo, or has already filed for an initial public offering with at least a $12 billion value according to the wall street journal reporting moments ago. the unicorn parade continuing in public markets. "what'd you miss?" is up next. this is

caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. lisa: i and i'm lisa abramowicz. joe is off tonight. caroline: the first slip in three -- four days now. romaine: the question is, "what'd you miss?" caroline: sowing the seeds of trade. looking to buy an additional $30 billion of agricultural products from the u.s. because of a trade deal. nike is facing backlash after a player spring disney when his nike shoe fell apart at the beginning of the game. border showdown. the nicolas maduro is -- nicolas maduro is shutting the borders with two countries. to recapwe just want the news on zillow, the real estate listing company recently

moving into home flipping. it's ceo is going to step down and hand the reigns over to the executive chairman who cofounded the company in 2005. he made clear in a statement that they plan to stick by their recent pivot to home flipping and other areas of the real estate market. you see that reflected in zillow's shares, down 6%. caroline: let's shift gears and check out the trade standoff. the us and china negotiators are hammering out details on memorandums that would work as a final tracheal. -- trade deal. china is set to propose $30 billion more in u.s. agricultural imports as part of the negotiation. let's bring in our next guests. great to have you both joining us. overall, the talks, they are progressing, right? have negative and

positive sentiment, but generally, are we working toward some deal? >> i think we have had ups and downs, even today we are hearing , but they will be talking into the evening tonight and continuing those talks tomorrow. some talk of a visit to the oval office tomorrow by xi jinping's special envoy to see president trump. all the signs are pointing towards progress, towards a deal. the big question is, it's a bit like watching the friends of yours you know who have been going out for a long time and asking when are they going to get engaged, and then when is the wedding going to be. we're still waiting for the engagement. and the wedding will be when trump and xi jinping finalize things at some point later this year. we are in this holding pattern right now, but we see progress. romaine: once we get some more details about what the engagement and wedding will look like, what will the effect be on the agricultural market? the things that we

need to hone in on and understand better is whether we are talking about china increasing its agricultural imports to $30 billion in total or whether they are saying they will add another $30 billion. if you look at the numbers, in about $20a imported billion worth of u.s. agricultural commodities. a move to 30 more, the question is really you are looking at 30 more billion dollars over a 10 year window or it's the move from the 20 to the 30. the applications are both for soybeans and potentially corn. china is trying to move into and eaten mandate to move to 10% ethanol use across the country -- e10 mandate to move to 10% ethanol use across the country. lisa: let's talk about the couple that has been going on

for a long time. what wedding are we talking about, $100 billion one or a $20 billion or $30 billion one? does this deal proceed something bigger that deals with intellectual property? >> absolutely. first of all, we are hearing it is an additional $30 billion per year the chinese are proposing in terms of agricultural purchases. that's a huge number. as your other guest was saying just then. it's only one component of the deal. one of the things we've seen over the last deed of years that we've been watching -- last two years that we've been watching this xi jinping a donald trump meeting at mar-a-lago, at that point, there were a lot of purchases talked about. we are talking about purchases and structural reforms. the big part of this deal is what kind of deal are we going to see. we do know donald trump would

like to see it at mar-a-lago. [laughter] caroline: let's talk kids now. i love this analogy. if it is $30 billion added, you will be tracking this children -- these children. who loses? if china is going to the u.s. for all of this, who is suddenly not getting their soybeans and corn imported? >> one thing to keep in mind is that china's move into 10% ethanol use by 2020 could increase significant amounts of demand to the global landscape. it's not really a question of who's losing, but it begs the question as to whether a lot of the stockpiles we are currently sitting -- that are currently sitting in storage would be taken by china.

brazil and argentina are obviously paying a lot of attention to these talks because they have stepped in and brazil has overtaken the u.s. as an expert or of soybeans to china, so south america will be paying a lot of attention. lisa: we will be awaiting the invitations to the sweating and the announcement of the engagement. thank you beaumont -- thank you so much to both of you. coming up, and encore of embarrassment is haunting nike in the markets. that is next. this is bloomberg. ♪ this is bloomberg. ♪

romaine: it was a sneaker blowout heard around the world. twitter's the nike after one of their shoes worn by a basketball stars ripped apart last night. the stock lost 1%, but the question is, to the fiasco have more serious consequences. covers the sports business and joins us to talk about this. for a guy like diane williams will gopro was likely in a few months and will be showered with offers, what incentive does he has to go with 90? >> that's the big question. i don't think nike sales would dip on this. i would love to talk to the average weekend warrior who believesayer that because of the torn fabric in the shoes that they might also. once i am williamses -- when's eye on williamson's w --hen zion

joins theon williams nfl, -- talking of mistakes or potential ones, breaking news coming on ford. ford investigating and omissions complaint at the moment. we understand ford in the u.s. is investigating u.s. fuel economy and emissions compliance. we're down to percentage points after hours. let's get back to nike. lisa: i definitely want to follow up on that. is there going to be a consequence from a management perspective from nike, or will they talk this up as freak accident happen. evan: first, they need to figure out if this was a shoe that was

poorly constructed or has problems with it or if this is just the case of -- caroline: an enormous person. evan: an enormous person doing and inhumane thing ripping through the fabric. pounds, so he's 30 pounds heavier than lebron james. lisa: that's the point of the shoes, i'm sorry. romaine: most of the clients in the nba are that size or close to it. one thing i found interesting was, a few months ago, i noticed how much puma was making in the u.s. market, and that's not the same kind of brand that has a big cachet here in the u.s. as overseas. we saw them tweet at this incident and retract it. evan: uma launched -- puma revitalized its basketball area. it was a coup in the basketball world.

puma is back in this world and proved they are willing to spend money -- proved they are willing to spend money. puma sent out a jab at nike. there was an outpouring from the puma stable on that. this is an opportunity. if you are under armor, adidas, willing to wade in on the quick , in an event like this, is a perfect opportunity to remember consumers -- remind consumers that puma is doing basketball and these are the people they are endorsing. when zion decides to gopro, puma will have a monster offer trying to get his services locked up. caroline: do you expect nike to go for supporting other key teams and the like? for me, they could own this.

there used to doing slightly outrageous adverts and could potentially run with it, maybe painting more amounts -- pay more amounts to zion. evan: does nike have enough trust in the basketball world? caroline: they dominate, right? evan: i would argue that, yeah, they are 90% plus of the basketball market. they do over $4 billion in basketball sales every year between the swoosh brand and jordan brand, nike is the player in basketball. i would hard to -- it would hard to believe that there were professional basketball players say nike is not a good quality for me anymore. caroline: evan, thank you. we're falling after hours after ford says it is concerned it does not involve use of a device in its product, however, we are getting announcements that it is investigating its u.s. fuel economy and emissions compliance. this is not -- does not involved

a device like dw. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. the north carolina elections board has ordered a new vote in the disputed u.s. house district. day of the board's hearing, they want to investigate absentee voter fraud. they were allegedly orchestrated by elliptical operatives on mark harris's payroll. harris said a new election should be called in the state's ninth congressional district. a report from new york city comptroller's says deportation have soared since president trump took office. more than 2500 undocumented

immigrants have been deported from new york city in each of the last two years. that's 150% annual increase. nearly half of the people had no criminal convictions. a judge set bond at $100,000 for empire actor jussie smollett who is accused of lying about being attacked. prosecutors say he gave detailed instructions to two brothers who helped him in a staged attack against him in downtown chicago. including giving them specific slurs to yell and telling them to shout maga country and drape a rope around his neck. >> absolute justice would be an apology to this city that he , admitting what he did, and then be man enough to offer what he should offer up in terms of all of the resources put into this. mark: superintendent johnson

staged the attack because he was unhappy with his salary and wanted to promote his career. jeremy corbyn traveled to brussels for meetings with european union leaders to discuss how to avoid a chaotic exit from britain -- from the eu next month. corbyn visited the european commission where he met with michelle barnier before meeting members of the european parliament steering committee. he said the meeting was productive. the prime minister is insisting on her deal, which has already been defeated heavily in parliament, and running down the clock by trying to keep the threat of no deal on the table with all of the damage done. mark: corbyn stressed the labour party was "determined to try to get to know deal taken off of the table." that is, in his words, a serious

proposition. global news, 24 hours a day on air and on tictoc on twitter, 2700ed by more than journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. romaine: we have breaking news on mgm, announcing management changes at the top, including appointing a new cfo, corey sanders will be the new cfo. he was already at the company as coo. taking over his role will be bill hornbuckle who is the president and will keep the president title and assume the title of coo. inoline: more breaking news the united states. a chinese giant when it comes to search, they are beating in terms of fourth-quarter revenue. it beat the highest that cement on the bloomberg consensus. we saw revenue common overall at three points nine $6 billion --

$3.96 billion. fourth-quarter adjusted profit is a beat, but is still down compared to this time last year. they are bringing in $1.92 in terms of fourth quarter adjusted profit. that's well ahead of expectations. the shares are bouncing after hours with of these better than expected numbers. lisa: it seems like it has not been as severe as people expected. we are seeing a little bit of a cooling and emerging-market currencies. venezuela is front and center when people talk about em it is shutting down its point of entry to keep shipments of humanitarian aid out of the country. nicolas maduro call the aid a pretext for american intervention. meanwhile, a group is in talks with the treasury department over how to proceed with a shipment of gold it could get from venezuela next month. this is in light of the sanctions the u.s. has placed on the government.

our reporter who reports on latin america markets joins us now. then, thank you for being here. -- ben, thank you for being here. we get reports that the military go -- gung quite aido and supporting maduro. ben: this has been a bit of a gambit on the juan guaido government, forcing the government to make a decision where they want to be on the side of aid or nicolas maduro. state himhey aside of nicolas maduro to pump out the little energy from the u.s. and other major actors who have thrown their support behind juan guaido. there's been a bit of discouragement in the international community about how quickly they might be able to lead to peaceful, political

transition as a result. romaine: getting to peaceful transition, but alleviating the concerns we hear from companies invested one way or another. we learned about a swaps contract for gold that they have in the country right now. they have to make good on it at some point soon. they are stuck between a rock and a hard price. ben: that's right. this is a contract initiated in 2019, before the most recent election, which has been called into question. city has a long history, over a century in venezuela. they have been one of the banks to maintain a presence, although they have rolled it back since 2016 by closing accounts. talksaid, they have been with the u.s. treasury. they don't want to buy late u.s. sanctions, and at this or, they have obligations to their clients. there are concerns about whether or not they will push ba -- >> they basically -- they will

-- romaine: they basically have custody over the gold. ben: that's right. the question is whether they will give these gold bars back to the venezuelan government. practically speaking, is the venezuelan government owing to give them $1.1 billion when they are running out of cash by the minute? caroline: probably not. we don't even know where the gold is held. this is a bank in the spotlight today because of comments coming from marco rubio, but there are other banks that will likely be on the hook, finding themselves on the wrong side of what are now the issues in place. ben: banks have been in and out of the treasury office the past two weeks, trying to figure out how the deal with the sanctions, citi being one of the most prominent ones. lisa: i want to go back to the humanitarian aid being blocked. i what point does the military say my neighbors are starting, we are human beings, and there is a crisis here.

at what point do you get to that kind of shift and are we seeing evidence that that is happening? ben: we see evidence in the middle ranks, which is what marco rubio was referring to in members of the military who were not the highest senior officials, have a close relationship with maduro, but are in some level of seniority and have family members suffering as a result of this. family members that could benefit from the fade -- this aid. but gradually filters up and up until it gets to one or too senior officials making a turn -- one or too senior officials making a turn. romaine: thank you. i want to turn now to some breaking news. we have the online advertising company, shares arriving strongly after reported earnings, but it is saying it plans investment -- aggressive investment in 2019. it also provided insight on its

platform spending, which will be at least $3.2 billion in 2019. they also posted a profit, something it has done every quarter since 2016. coming up, dueling sides of lo's. -- c the debate on whether they are good or bad. that is next. this is bloomberg. ♪

romaine: loan obligations have become the hottest thing on wall street. uslife insurers are loading up on clo's. those might prove problematic in the next recession. our next guest has a brighter take on what is ahead for them, underscoring the lock in

long-term, non-market to market finance value. let's bring in the founder of eagle pointe credit, thomas. depending on who you talk to, these are the greatest thing since sliced bread or their -- they are a harbinger of gloom and doom. are we in between that? thomas: that's a good question. a goodmuch closer to be thing. in the studio, i'm sure a lot of people have talked about bad things happening to cdos. clo are backed by loans typically from american companies. dell computers, american airlines large companies we do business with everyday. clo's have performed exceptionally well historically. has 96% ofuity class them with positive returns and the medium irr of 50%.

lisa: there's a lot of positive noise around clo's. they've been tested during the financial crisis and survived. time, it's different, in the fact corporate credit has been more inflated and mortgage debt. there's this extra risk of draft of knees involvement -- japanese involvement. you have fishermen and farmers buying the new bulk of clo issuance. how crucial is that japanese demand for the performance of the market? thomas: the underlying performance and ongoing issuance volume, if you look historically, the default rate overvestment grade clo's 20 years, single-digit basis points to 10 basis points, there was a report you might have been referring to the talked about the risks of single-a and triple b securities. if you look a data over the last 20 years, the default rate is 10 basis points, far lower than

corporate securities, and extraordinarily lower than margin -- mortgage securities. japanese banks as well as u.s. banks and insurance companies have been major players in the senior part of clo's, particularly the aaa area. in the history of the market, we are unaware of aaa tranche or aa tranche. the subject of a number of articles in the media, the bank, had been a long-standing market player. other large japanese banks, u.s. banks, and u.s. insurers have been active. different investors come and go from the market. regulations change. the fdic put on new regulations five years ago. currency risk changes and hedging costs change for japanese investors. we have found while some investors may invest more from time to time and others back away, it has been a pretty

natural back and flow. caroline: talking aaa's, we can risk happy and appetite you get go down the capital structure, where is the best point to be investing? thomas: equities. caroline: what are the returns you are seeing at the moment? thomas: potentially, the risk of all clo's created right to the financial crisis, the mean irr with 50%. have non-market to market locked in financing. unlike many banks that used to nineiled out in 2008 and -- and 2009, clo's has financing longer than their assets so they might have loans five day to loans but 12 your financing. that allows for them to reinvest when no one is buying. lisa: we've had warnings from

the occ and federal reserve and regulators in europe. are they all wrong? thomas: it might not understand all of the nuances of a clo structure. things likemost mortgages and autos and things like that, those securitizations are static pools. the initial loan to start with is what you get. how those loans workout is ultimately what determines your good or bad fortune. a clo typically has a five-year reinvestment period. it's loans make amortization payments should the collateral manager sell a loan, or if they loan defaults and recovers, the proceeds can be reinvested into new loans, and potentially in the secondary market. in 2008 and 2009 when there were forced sellers of loans from hedge funds and mutual funds redeeming, clo's able to take their payouts.

they could be going on offense, buying when few other investors were buying loans. due diligenceour before hand. it's great to get your experience, thomas. let's get more breaking news. blue apron, it plummeted from its ipo price. it's all about food delivery and making a meal in a short amount of time. we see blue apron name a new clo -- coo. the transit one dollar 50 after hours. that is coming well -- $1.50 after-hours. $13, about $10 when it first idea, but we're down to $1.50. more on that breaking news from ford we had earlier, shares are sliding after-hours as they said they are filing that it has

become aware of a potential concern involving its u.s. omissions sophistication process. for the latest, let's go to bloomberg's auto reporter into drawer -- in detroit. keith, this is not the same issue as what struck volkswagen. how worried should we be? keith: ford took great pains to say this does not involve defeat devices, the things dw used and its diesel engine. withad, this is a problem specifications of how they test for emissions for the clean air act and fuel economy. they have been investigating this since employees brought it to their attention in september. just this week, they've reported it to the epa and california air resources board. the epa says there is not enough information to take action yet. more investigation needs to be

conducted. romaine: why do we keep hearing about incidents or alleged incidents were automakers are accused of gaming the omissions system in some way to make it look like they are getting better mileage or omissions than what the cars really get. what is going on here? keith: they dance along the to meet these regulations, but also to give their cars the power and attributes that consumers crave. what you have seen, in some cases, not in this for example that we know of yet, but in dw and other cases, is that they break the rules and cheat. in this case, it looks like some employees found a problem with how they were conducting testing, and have been investigating it since september. they hired a firm to do the investigation, but the epa feels much more needs to be done. lisa: is this a master class in

how an auto company should deal with this issue? we saw volkswagen come out with a partial response condemned by investors. we see ford shares down a touch. does that mean ford did this right? keith: it's hard to know just yet. it is so complicated how this all works, how they certified cars to establish the fuel economy, the gas mileage you see on the sticker on the window, and how they establish whether or not the cars are emitting the right amount of pollution to meet clear air standards. at the early stage, it's hard to know how ford has conducted itself. i think there will be independent investigations done probably by the feds as well as the california resources board. caroline: keith, we thank you. meanwhile, more breaking news. this time from hasbro in relation to advertising on youtube.

it too is pausing its advertising on youtube. companies are coming thick and fast. away seen many brands move from advertising on youtube and concerns the platform can be used to forge networks of people engaged in exploitation of children. this is rearing its ugly head when it comes to youtube. we will wait for the parent company to respond. lisa: in the meantime, let's get a check of the business flash headlines. domino's pizza shares fell after fourth-quarter results show the rapid growth is cooling off. than expectedss and domino's has used tools like delivery to any location to spark regrowth, but the impact of the measures may be wearing off. -- carlottaeld lagerfield's cat

could inherit some of his inheritance. earnedestimated to have more than $3 million from modeling jobs, and incurred a made andchef, a a bodyguard. there is your rich cat update. romaine: i love this. i did so much research into the world's richest pets. there are a lot of them. a dog named gunther the third inherited $80 million from his previous owner, and gunther went on to invest the money. $375 million. that was later passed down to gunther the fourth. romaine: you mr. calling -- missed your calling. -- lisa: you missed your calling. romaine: in 2000 he bought miami

beach's -- a miami beach mansion. what is this? lisa: this is bloomberg. [laughter] ♪

caroline: it's time for asia ahead. the earnings season of china is coming up, but goodwill could play a complicated role. shery ahn is here to explain the goodwill where they will be writing it down. shery: we're talking about companies that have paid more than their fail value for other companies. we have seen this. three of m&a and china, given the easing policies in 2015, not to mention it was a way to get an ipo to get listed if you couldn't do it because there was a halt during the 2016 time. there's a lot of this out there.

romaine: are these done being voluntarily or are they getting pressure from the government? shery: they have done them voluntarily as a way to get financing. they have been -- there have been so much out there that our bloomberg columnist is warning this is a ticking time bomb. if you look at the sectors in the chinese economy, we are techng about health care, as well, and all of those areas. in facts, the government is cracking down on value. >> there's a possibility there is -- this is the tip of the iceberg. ofry: we see $1.3 trillion -- 1.3 trillion yuan. caroline: you can check out far more from shery on "bloomberg daybreak: asia" at 6:00 p.m. eastern time. that's all for "what'd you miss?" romaine: "bloomberg technology"

is up next in the u.s.. lisa: have a great evening. take care of that pat that might be richer than you. this is bloomberg. ♪ -- pat that might be richer than you. bloomberg.com -- pet that might be richer than you. this is bloomberg. ♪ ♪

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my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. >> i'm selina wang and for emily chang. this is "bloomberg technology." in the next hour, a shakeup in the payment space. apple and goldman sachs are teaming up for a credit card. can the companies dominate the syntax based? plus, lyft is ramping up its ipo as well as pinterest. and, the global race for 5g. president trump wants telecoms to embrace the new