we saw over the last two days. caroline: many wondered why there was a slow risk on take but playing catch-up. some risk onstill movement. the s&p 500 up more than eight percentage point. have not seen that -- a percentage point. have not seen that movie while. scarlet: if you are looking for signs the economy is doing well, that would be one even though it is suggested that things are not doing well enough that it needs to take rate hikes off the table. joe: we are getting close to record high overall in the stock market. chipmakers getting high but we are not that far. what was it? 2940. another couple of days like this and we would be at all-time highs on the s&p 500. caroline: of course, the constants telling us earlier that it is not up to us to pick the levels.

there are overarching things to keep the goat story going. scarlet: keep the expansion. caroline: keep the expansion. keep the jobs. now let's dive deeper. on the close to my stellar set of returns today. abigail: i'm watching the stocks putting in the record this is impressive. let's look at the charts. to the point you are making, this is a leading sector. chips are in everything we use. this should be encouraging. there are points to take a look at. look at the big move up we had 2017 to 2017 into 2018 and then up and down. each time an uptrend has broken, we have seen the stock pullback pretty dramatically until this year. this year, greater than 30% increase and we are only breaking out to new highs. this as the rsi momentum indicator is entering into overwatch territory above 70. last year, we saw the rsi get as high as 83. perhaps we will see more games ahead for the chip index. the last big move up 27%

consolidated the volatility. this year, more than 30%. interesting to see how long this trend for the chips continues. romaine: i'm taking a look at packaged food companies, specifically conagra. you know them for the culinary delights like chef boyardee and orval redenbacher. having their best day since 1989. that is because showing some progress with the acquisition of pinnacle frozen foods. it bought that company for $11 billion last year. a lot of concern the company was not seeing any dividends paying off from that. frozen foods really key to a lot of packaged food companies as the item is seen as amazon proof. for some reason, they have a lot of appeal with millennials and the younger generations that no one can seem to figure out. frozen foods seems to be the direction here. the ceo saying there is a lot of work to do with pinnacle but he is aggressively working to address some of the executional issues such as with the birdseye

brand and some of the other non-frozen food items in that pinnacle lineup like duncan hines and wishbone. this earnings report coming a day after general mills also gave a pretty bullish forecast looking ahead and that is lifting the packaged food companies up. the packaged food index up 3% today. all 26 members rising. luke: i like to look at utilities right now. interest-rate sensitive. a big pulldown in bond yields recently. heading into this week before the fed caressing interest rates start to inch higher and this group starting to roll over. not the case anymore. a master risk advisor out there with no decline highlighting the sector in the s&p 500 that correlates the most actually right now with the momentum indicator is indeed the utilities, not tech, not anything of that nature. max out with a note recommending clients buy calls in excel you the furtherng

dovish pivot for the fed will give you everything you need. if you are betting winners keep on winning, more and more you are now betting on utilities. caroline: great perspective. we thank you. still with us is sandip and sarah ponczek. you were saying the fed made the right decision. where now do we put our money? is it all about tech leading the charge from here on out? in this environment, just to understand the action in the markets, the lower interest rates are higher multiples. using about multiple expansion beyond what is happening with the growth dynamic. what it means, we do not see a recession in the imminent future. not in 2019, not in 2020. stocks over bonds make sense. the u.s. has the best fundamentals. u.s. over non-us stocks seems like a good bet. emphasizing the cyclical sectors and tech financials,

industrials, consumer discretion. joe: what is your take on positioning? there is this idea that people have been still underinvested after the selloff at the end of last year. that.ey conveyed higher prices may force people to chase and induce more higher prices. could that be part of what we are seeing, that dynamic play out? sarah: potentially. interesting to see next week what the data looks like from this week because we are seeing markets turn higher and we could potentially see them turn higher through the end of the week. we have been asking ourselves if people are really sitting on the sidelines, what is going to take them to get back in? it has been painful, the trade higher for those who have not been a part of it. now that the fed is finally officially on the sidelines, does that mean the people are throwing in the towel and saying time for me to get back in? scarlet: you were talking about

how an economic recession is not in the cards. what about an earnings recession because estimates have been going down? sandip: we are almost on the cusp of it. first quarter projected to be negative year-over-year but the second quarter, we are a threat above zero at 0.1% growth. this is happening right now. the market's job is to discount events in the future. it could not be going up if it was concerned about the earnings recession unfolding just now. so the focus now is maybe 3, 6, 9 months out. with the start of a global easing cycle, the prospect of the resolution of the trade war, may be on the brexit front we get some positive development, the foundations and the catalysts for the revival of growth. i would not be surprised if growth bottoms out. the economic variety and earnings growth variety. in the first quarter. i think the market is focused on the second half of 2019 where we see this revival.

which also justifies the move up and mixed a multiples not so egregious because it is likely to go up. caroline: we have seen a massive rally in bonds over the last day. today, yields touched up a bit. you said to stick to equities over bonds at the moment. are bonds try to signal a different set of concerns right now? what do you make of the variation in performance? sandip: this is a debate that has been going on for a long time. one of the two markets must have it wrong. the action in the bond market says with this letter yield curve whether recession is going to happen anytime soon. there is an alternative explanation. there is weakness in foreign economies that has kept foreign bond yields lower. german bonds. caroline: negative. sandip: flirting at 10 basis points. just on the relative comparison of interest rate differentials, that is putting a downward pressure on yields here. and i think that is at least as

valid an explanation as this being the precursor of the recession in the u.s. joe: i don't understand why people see the two having to be in conflict. stocks and bonds have both been rallying for 40 years. stocks go one way and rates go another for decades now. this idea there is tension seems at odds -- seems odd. scarlet: that is our fault here. sarah ponczek, when you look at what is going on with credit, everyone thinks credit leads so whatever side of worry or euphoria will be found in credit, it is notable that j k is unchanged today and hyg is unchanged. has been on a spree the last couple days. sarah: as you can see, they are bumping up a level they have bumped up many times in the past. one firm put it the mother of all resistance levels to credit.

so we are getting to this point of where we get a continued wisconn valley, we should theoretically potentially be able to see hyg break out above the levels but we are right now clearly holding below it so we are going to have to see if finally these levels will give because they have been holding for over a year now. scarlet: we will keep an eye on them along with the markets overall. our thanks to sarah ponczek and sandip. thank you so much. sandip: great to be here. caroline: let's bring you breaking news because gamestop has a new ceo. google gets in on the action when it comes to gaming. the consul, could that be eroding? down by 1.4% now. they named george sherman to be the ceo. they had an interim ceo of shane kim, who has been there since may 2018 and director since july 2011. george sherman is the chief executive officer. scarlet: bouncing off the bottom

a little bit there but still bouncing around. that does it for the closing bell and for me. "what'd you miss?" will be looking at biogen's alzheimer's treatment setback. this is bluebird. -- this is bloomberg. ♪

♪ caroline: live from bloomberg world headquarters in new york, on caroline hyde. the is a snapshot of how markets closed up on the day. it was a tech outperformance. joe: the question is, "what'd you miss?" caroline: winning streak. nike has talked earnings 93% of

the time the last couple years. plunge. wiping more than $18 billion off of its market cap. plan b. eu leaders giving theresa may a short extension. first two biogen. the announcement it would halt research in all-time mistreatment has cut a quarter off of the companies market value. another blow to the drugmaker's popes. joining us to talk about what the company goes from here is michael yee in san francisco. perhaps you were not surprised by this but the market was clearly shaken. how much does this erode the valuation of the company? michael: this was a huge setback for biogen permit this is not only the company's biggest pipeline drive but i could be the biggest pipeline drugs in the industry. this is a huge setback. it is going to wipe out a lot of its future growth prospects going forward. we think the company needs to go

out and rebuild the pipeline over the next year or two and probably do a lot biotech acquisitions. romaine: do you think they will stick with this? we had a pretty long string of failure in the alzheimer's space with the experiment of drugs. i'm wondering if you have any sense why these companies keep chasing this so hard with so much money. michael: that's a great question. biogen still has actually two or three other all timers drugs in late stage development as well, which you can argue are very risky. really, it has to do with obviously the huge prospects of a potential 10 or $20 billion business. all timers -- alzheimer's is one of the biggest tragedies we haven't health care. a huge cost to the system. a lot say it is quite promising so that gets people to go forward and run the studies. quite risky. you look at the rest of the pipeline, there is other stuff in parkinson's and lou gehrig's disease and a host of other

programs. there is a question whether or not they should transform. joe: other specific companies in mind that you think could be? michael: there are. other companies we think are promising that would fit in well with biogen. a company like sage. they just got approval of a postpartum depression drug. a big breakthrough in that setting yesterday. that and its pipeline to be multibillion dollars for that company. -- anotherup muscular dystrophy program. a lot of companies they could acquire. caroline: nike earnings coming in. $.68 per share for the third quarter. that was a beat again. 93% of the time they tend to beat. revenues coming in slightly end line. the gross margin, 25% bigger than expected for the fiscal

third quarter. joe: on the revenue side, a here shot in north america. 3.1 versus 3.8 billion expected. revenue a beat. again, the floor is not falling out in china like it is for some. romaine: those china numbers are what a lot of people are looking at. as long as they are beating on that, that keeps people happy as well as the margins. joe: start gaining after hours. caroline: let's return to our conversation about biogen and its weak performance. michael still with us from san francisco. what about biogen being a target in and of itself? michael: that's a great question. muchthe stock down so with negative sentiment, everyone is bearish going forward. that is a valid question. the acquisition last month was a similar situation. stock was down huge. everyone quite pessimistic. there is value not only on

biogen underlying assets but some of its pipeline programs and the potential to cut costs. i think that is possible. be, but there is a lot of uncertainty. sure, there is under value for the potential. joe: for an, incidents like this drive home that investing in biotech is a roulette wheel. you bet on a company and one day they can drop a bomb and a huge chunk of the market cap goes away. what does it do overall when one of the biggest companies in the space has something like this? does it discourage people and make people back off the sector overall? michael: quick question. i think the good news or bad news is that everybody knows alzheimer's is a hugely risky proposition. while the stock was down a lot, there was huge upside if it would have been positive.

people kind of knew that. that is why they were there, the risk with the reward. even though there was a failure here, there is a huge amount of enthusiasm for the sector. there were four or five m&a deals in the last few months. $20 billion of small companies getting acquired. we are having setbacks in all timers, it a lot of positive things going on in the rest of the sector and the xpi probably moves higher this year. romaine: thank you, michael. quick just want to do a recap of nike earnings. they are out. they beat on the bottom line numbers. revenue coming to life or the third quarter but two of the main metrics people watch here of course are the gross margins which beat estimates and the sales particularly in china came in about revenue estimates. joe: and has gone from green to red. caroline: many thought it would not be easy you on your comparisons. romaine: we will dig a little

bit deeper into this. this is bloomberg. ♪

caroline: time for a look at what stories are trending across the bloomberg universe for you now. when you are reading about the richest man racking up acquisitions in the pharma space, his family office agrees company at 831gy million dollars. a40 3% premium to its last trading price. in the wake of the college admissions scandal, the admission of legacy students has become a key question. a story on the university of notre dame and baylor university. they lead the list. the most children of alumni.

that is compared to harvard rocking in 14% and yale with 11%. reportingtwitter is that children have become a legal issue for google and it has become hard to tell the difference between an ad and regular videos. you can follow all these stories on the terminal on bloomberg and tictoc on twitter. thanks. now another ex-president arrested in brazil. temer becoming the second former head of state to be caught up in the carwash probe get the news said cross waves across the country. today. 2.6 percent let's bring in julia. about this news that spooked investors? some context that the stock

market has been on a tear lately. >> you would not think of him being a former head of state and no longer in the government that it would have made such a big impact, but the thing is the concern is that this will impact the negotiations reform. he comes from a very traditional, very large party. he has been a politician all his life. so the concern is this will derail the discussions again from pension reform, which is what investors want to see. likeppened looking progress was being made and we do not know how much impact this will have. romaine: are there allegations out there now against any politicians currently in the government right now that would be linked to this arrest? julia: not linked to this arrest, no. there is plenty of lawmakers that have been involved in carwash one way or another. none of the ministers, none of the cabinet members, or bolsonaro have been tied up in carwash, no. caroline: talk to us about the

ramifications. we know that in some ways, the president now serving, his own son has been caught up in concerns about big payoffs, maybe money moving to the president's wife. how difficult is the corruption scandal? how far away can the current president stay away from it, bolsonaro at the moment? or is it going to affect previous administration's? julia: carwash has been going on for five years and has affected a lot politicians, a lot of businessmen. it has not affected the current ministration or bolsonaro, but you are right. there were some suspicious money movements with a check being deposited to his wife. there was some controversy with his son and some other things. impacted the yet government and the way they are conducting business. bolsonaro's popularity has fallen quite a bit since he was elected in january, and that is attributed in part to that and

has distracted from what the government is supposed to be doing, which is passing the economics agenda. caroline: that is all important for the continuation of the stock rally we have seen and in the brazilian rial. thank you. turning out to other politics, i'm going to talk u.k. brexit dragging on. i minister theresa may has been heading out to brussels. perhaps the new music is not all good but what particularly is good is the fact that we have a website building up more and more numbers in terms of people wanting brexit to be over. joe: to put this into context for me, there is a statistics parliamente official politic petition website. is it a big deal for parliament to follow this? caroline: this is a petition, and apparently, the petition website says it would crash. it has never seen so many people

trying to view and make a vote at the same time. usually if you could 100,000, it might potentially go to some sort of a debate in-house comments. we are debating brexit. romaine: do we need another debate? how many people are in britain? joe: didn't they already asked people that voted? caroline: the key question is who is doing the voting. an awful lot of the 1.3 million are in remain. lennoxgh grant and annie and a couple other people. any lead celebrities? romaine: are there lead celebrities? joe: the guy who owns a chains -- chain of pubs. caroline: i thought that was very telling. they asked the prime minister's own spokesperson about this, and she said she probably said this 12,000 times in this room. we are not going to move away from -- they are not going to revoke article 50.

i think people are just sick of brexit, whether leave or remain. romaine: yes. it will be interesting to see if we revisit this again. joe: this is the big fear. with some extension, you just don't know what is going to happen until the hard-core leavers are kind of terrified anything can happen in the extension. caroline: we will see with the extension looks like. romaine: back to the u.s., nike earnings are out. we told you already they beat on some of the main metrics, including gross margins and some of their overseas sales in china and asia. we are seeing shares fall a little bit after hours, down about 3%. not quite clear why but we are seeing inventory drop a little bit. they missed on overall revenue. companywide. caroline: a tiny bit, like 9.6 versus 9.65. what is interesting is the u.s. and many felt it was a very beautiful comparable and they did not beat it. romaine: i agree.

this is bloomberg. ♪

mark: i am crumpton with bloomberg first word news. president trump says it is time for the u.s. to recognize israel's sovereignty over the disputed golan heights, signaling a shift in u.s. policy and ahead of israeli prime minister benjamin netanyahu's planned visit to the white house next week. netanyahu described the policy shift as historic, and said he called president trump to thank him on behalf of the people of israel. >> if this were a time when iran is trying to use in syria as a platform to attack and destroy israel, the message president trump is giving the world is

that america stands by is rael. golanisrael captured the from syria in the 1967 mideast war, annexing the area in 1981. the government of new zealand today announced a ban on military style semiautomatic firearms and high-capacity magazines, just a week after such weapons were used in attacks on two mosques in the city of christchurch that left 50 people dead. an immediate sales ban went into effect to prevent stockpiling. prime minister jacinda ardern says new laws will be rushed through parliament that will impose a complete ban on the weapons. her party controls a majority in parliament, so passage of the legislation is expected. new zealand does not have a constitutional right to bear arms. who stood at the front and watched his fellow worshipers can continue on, then

i absolutely can. i fortify myself by knowing i have a job to do. mark: the announcement comes as nine funerals were held for victims of the massacre. iraqi officials say at least 71 people, mostly women and children, are dead after a ferry overloaded with people's elevating the kurdish new year sank in the tigris river near the city of mosul. the interior ministry says 59 people, including children, were rescued. the spokesman said the ferry sank because of a technical problem, and there were not many boats in the area to rescue people. more people are moving to canada. biggestrecorded its influx of immigrants in over a century, with statistics showing 320,000 people arrived in canada last year, the largest amount since 1913. the increase has helped fuel a

surge of employment despite sluggish indicators in other parts of the canadian economy. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 100 countries. i'm mark crumpton. this is bloomberg. joe: eight days away from its nasdaq debut, lyft executives in new york today as part of their roadshow pitch. but our next guest says the ipo filing omits necessary details. we want to welcome triton research ceo. you have a specialty of digging through filings and evaluating ipo's and you say that you cannot assess lyft's business from the s-1, which is kind of weird because they have all the normal financials. what in your view is missing? >> we have anything internally that we call the obfuscation

index, partly transparency. and this company scored an 11 out of 10 in office occasion. the financials are there, but other than that, what are the churn rates of passengers and drivers, what does it cost to acquire both, how much money do they really spend in discounts and so forth. we think there might be as much as 300 million dollars that is kind of squishy in the revenue number, discounted stuff they need toenue, so they build a model projecting the company in the future. the one number you can believe is the $1 billion in negative victim. -- negative ebitda. romaine: will investors demand that, or is there not enough pushback? >> they have a lot underwriters. goldman sachs, morgan stanley, allen and company. they decided to not furnish this information. that gives uber the opportunity

when they file to take it competitively to lyft and be more transparent. what you get right now is what you get, and you can decide if you want to focus on the top line and not worry about profitability. caroline: we had great reporting from eric newcomer, who has been camped out in the lobby of the hotel. [laughter] basically saying, they now say peak spending will be 2019, which begs the question, you might not be spending as much going forward, relieving the cost base, but what about the marketing spend if you are competing, keeping the 39% market share they claim to have? uber, not including any competitors, and a source that is -- not exactly the best number to hang your hat on. if you think ridesharing will be big in the long term, you have the big number two that you can own at $25 billion value, which might be great for you, but it would be great if you knew what the unit economics were, if they

were making money as they scale, because it could be they lose money on each unit. romaine: investigators -- investors and seem to give companies like this a pass. this is not the first time we have seen a number like this be a little squishy -- company like this be a little squishy. when you look at the levi's ipo, the appetite for it, maybe that gives a green light to lyft to say we can do what we want. rett: it is hard to score lower in our system than snap data, but lyft. scored much. a big, well-known, well-funded company that has terrible disclosure, that has decided we will get people to focus on the top line, not the other stuff, but also a big, gnarly, dominant competitor. snap had to take advertising dollars away from facebook, which they struggled to do. similarly, lyft has to compete with uber, difficult to do because uber is so much bigger. joe: you score ipo's on all

these factors. transparency, all this. t onlyredictability, i matters if it can tell you a stock will do badly or well. so when companies have scored well, what are some examples that stand out? our highestample, score ever, a total stand out. companies that have done really chineseugu, a e-commerce company recently that got our lowest score ever. on average, over the last year and change, companies with high scores or above average scores have about doubled, and companies, all tech ipo's in general are about 45%, so you are doing twice as well with high scores rather than average. caroline: some analysts are finding enough to give price targets. $75 price target from davidson. bloomberg intelligence talking

about the ability to expand the business model into freight, food. do you think that's a realistic way the business will go? yes, there might not be much transparency on overall numbers, but is the general consensus -- rett: they bragged on the roadshow that they are focused on passengers, not freight or food, which they set up front. i think the real expansion opportunity is non-u.s.. they say canada is immaterial, so they are u.s.-only. so whether they will be in other lines of business that will cost a lot of money to develop is one thing, but are they going to be a global transportation company like uber plans to be? joe: even in the transportation category, things like scooters. for both these companies,t he degree to which their future depends on new business, even as the current business doesn't seem to be all that special. rett: it is special, just not

profitable. minor detail. they say it is early innings, and that could be true, developing into a way that people get around and they are a temple of the economy. will scooters be important to that? i don't know. that's the whole point. that's why the transparency score is so important. it would be great if we had all the numbers, to make an assessment about how important each of these components will be. aws.hen up theirad aws sleeve, they should tell us now. [laughter] caroline: do come back and tell us if they do. thank you. from the mega ipo to a megamerger. the combination of brookfield and oaktree would create one of the world's largest money managers, $475 billion in assets. erik schatzker sat down to discuss the deal. erik: this firm is really, really -- >> this firm is really, really well done.

that's why we bought it. for various reasons, including regulatory, because we run private equity businesses with confidentiality agreements, and this is a liquid purchasing business of bonds, often these businesses cannot be mixed, and they need to be run by a separate team. by finding a separate team, and having them highly invested, highly in scented -- incentivized, highly focused on running their business, we are thrilled. we are thrilled this management team will be running the business, having say over the business, and we can't think of a better group to run it. so we will help them in any way that we possibly can, but there's nothing we can really do to a system on a day-to-day basis, in doing the business that they run today. erik: i did not know about those regulatory constraints. will they exist in perpetuity? does that mean it is impossible to fully integrate the firms? >> we have a regulated unit that by securities, totally walled

off from the other part of brookfield, doesn't share information. this will be like that, and probably forever. full integration is something that -- all institutional management businesses like ours with these businesses have to keep walled off units, for regulatory purposes. now, marketing of products can be different. delivering of services can be different. but the investment management arms have to be kept separate. ifk: howard, what happens you and bruce don't agree on something? the buck has to stop somewhere. thehe agreement, plus nature of our relationship, gives us the opportunity to run oaktree in line with past practice, autonomously. bruce and one of his colleagues will join our board, as you noted.

they will give us advice when they think we need it, but it is our baby to run. it. you know, that's as bruce indicated, they bought us because they thought it was a well-run company. you would have to be a master of the universe to say, well, we are spending $5 billion to buy your company, which has been functioning so well, you can leave now. what would they get for the $5 billion, you know? it is really oaktree and its people. the other thing of course is that the transaction would not have had a chance if that were the basis, if it were, we will buy your company and, you know -- erik: you would not have done that deal? >> no. that was one of the criteria. erik bruce ford marsh and the foreseeable future maintain operating control, where do the synergies come from? >> this was not about expense

synergies. this was about delivering greater numbers of products to institutional clients globally that want these type of i'll call and the them revenue synergies are the fact that we think we can help them expand the base of businesses and clients they have, and they will help us in various ways, and that's it. erik: so you can fund raise together? >> we can facilitate fundraising in the future, on separate counts. it could involve products from both strategies. caroline: howard marks and bruce flatt, speaking with erik schatzker. a quick look at what's happening with nike shares, falling in extended trading.the reason seems to be a miss in the u.s. part of the business, revenues of 7% higher, not as much as expected. we will dig into this much more. this is bloomberg.

romaine: nike is out with the latest earnings, and the shares are dropping a little after hours, apparently missing some analyst expectations on a few metrics. here to talk more about that, bloomberg's apparel analyst. looking at the numbers, $9.6 billion in sales worldwide, slightly short of analyst estimates. what is the real issue here? what is going on? >> it is too early to say, because we didn't hear the call yet, which will be at 5:00. but the numbers, it is a little bit of a miss, but still really impressive numbers. the u.s. up 7%, the region that 12 months ago was negative. 24% in china. the growth rates are still good. maybe not as much as people

expected. joe: why have things changed in the u.s.? >> we have to hear what happens in the call. judging what was reported a few weeks ago, it seems like the category is healthy. maybe some shifts are going on because we have to remember the shift into footlocker, so maybe -- we will have to hear that on the call. this is a company that rally 30 percent from the lows, at a record high as of today. maybe there's a bit of profit taking going on as well. >> may be. there's a lot of excitement in the market, and there has been in the last year for the pipeline, the products. caroline: they are getting every thing right. >> for the most part, yes. it helps that adidas isn't doing very well right now in europe. romaine: this is just a ubiquitous brand, right? their only real direct

competition is probably adidas, and the smaller puma. there will always be an ebb and flow of what is in style one month to another. what is the goal for the business right now? to continue churning out new products, or is there some new direction they are looking for? >> it is really the products. product is number one. but we talked earlier with someone about the women's segment. it is only about 20% of their business, and they are 52% of the population. caroline: me! [laughter] >> there's a lot for that side of the market. joe: turning the page, levi's going public today, a pretty nice debut. what is it fundamentally that people are feeling good about? caroline: not a debut, it is returning. joe: a return after 30 years of absence from the market. >> very strong brand. a lot of history. and nine ebitda,

and the price right now more reflects the average for the industry, 11 to 12, so the market was excited about the price, first of all. they also gave it an outlook for single-digit revenue, kind of flat margins. i think people say the target they put out there is achievable. caroline: always great to get your analysis. business the latest flash headlines. the hangover from whiskey distillers in the u.s. has become more painful. the slump in american whiskey exports speeded up at the end of last year. fell 11% during the second half of 2018. the beverly hills outpost of barney's new york is opening a store for wealthy marijuana lovers, opening a department called "the high-end," with an assortment of pricey stylish pot

products, among them an $1100 handblown glass bong, and a $1100 grinder. this week, cvs will start selling products with cbd, the non-intoxicating marijuana component. it's getting everywhere. romaine: is it jumping the shark now? it is not really edgy, if i can buy it at cvs. [laughter] joe: it is so weird. it is like wellness, but what does it do? i guess -- caroline: i am a slight convert. i have a cbd thing you rub in to take away pain. maybe it is placebo, but it works. romaine: you are feeling good right now? caroline: i haven't used it now, but in the evening. [laughter] romaine: i use tylenol. . joe: i am a skeptic. caroline: and it is only in 800 cvs locations. there are what, 10,000? slowly, slowly. romaine: this is bloomberg.

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caroline: let's talk asia. south korea's biggest conglomerate is in a proxy battle with an activist investor. shareholders will vote on a proposal tomorrow. let's bring in shery ahn. it's kind of fascinating what is going on in any proxy battle in asia, but talk about what might go through tomorrow. shery: activist investor paul singer's elliott management asks for $6 billion in payouts and special dividends, more than six times what the companies are willing to offer at this point. they also want a shakeup in the boards of hyundai motors, one of the affiliates, a car parts company, as well as hyundai motors. this battle going on. what is really interesting, the fact you have this activist investor going big in south

korea, after the battle they had with samsung in 2015. romaine: talking about pulsing your here, but he's not doing it -- paul singer here, but he's not doing it alone. shery: he has a prominent advisory firm behind him that once to see changes. he got a big win-win an institutional -- a big win when an institutional advisory company said this would benefit shareholders. but the negative news for elliott at least, south korea's national pension service came out, and they are backing their domestic companies, and they own 8.7% of hyundai motor, 10% of the other company. at this point, seems like a lost battle. joe: talk about this a little more, the big picture of trying to do activist investing in south korea with the giant chaebols, and the prospect for shaking them up. it's hard enough here, where they aren't -- shery: can can you imagine, in

asia, where the corporate structures are so complicated and diluted, and these big activist investors coming from abroad, trying to change these very insular corporate cultures. so we have seen a mixed picture. we have seen elliott try to shakeup samsung, back in 2015. we have seen them also act on hyundai before. last year, they actually did succeed in blocking that $8.8 billion merger of two hyundai units, which was really needed for the consolidation of power of the executive vice chairman. this has really shaken up the industry. you put all these companies in the spotlight. what you have seen in south korea, all you have these campaigns. up to 12 south korean businesses targeted last year from what, nothing back in 2013. the numbers tripling in asia, to

111 last year, 40% of that in japan. so you are seeing the changes slowly. caroline: we will see what happens for the biggest auto conglomerate in south korea, hyundai. don't miss "daybreak asia." the numbers for manufacturing pmi come out in the u.s., france, germany and the euro area. joe: and more economic data. saless for existing home in february out at 10:00 eastern. romaine: and don't miss first quarter earnings tomorrow. "bloomberg technology" is next in the u.s.. joe: have a great evening. this is bloomberg. ♪

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♪ ♪ emily: i am emily chang and this is "bloomberg technology." hundreds of millions of facebook passwords, visible to its employees. the social network admits to an egregious flaw dating all the way back to january. plus, amazon has been beta testing video apps on ios for months, the latest attempt to grab a bigger chunk of the $129