tilray is a very volatile stock. scarlet: they say they will use the proceeds for working capital, future acquisitions, and general purposes. caroline: and m&a. scarlet: yes. we wanted to note jay powell is speaking in washington now and any headlines, we will bring them to you as they come. that does it for the closing bell and for me. romaine bostick will be stepping in and looking into whether president trump is a self-made billionaire. this is bloomberg. ♪ caroline: live from the world headquarters in new york, i am caroline hyde. romaine: i am romaine bostick. joe: and i am joe weisenthal in washington. caroline: stocks closing not off of the highs. a new record high for the dow jones industrial average. joe: "what'd you miss?" caroline: taxing times. -- talks trump plans about his finances calling the report a hit piece. raised treasury stakes. investors bet on the world's biggest economy. sticking on the yield the scene, plenty on powell. a have him speaking at particular event today. he is happy with the econ

hi, adidi. >> that is right tilray shares down about 6% after hours. this after the company announced a $400 million private offering of convertible senior notes. the notes or debt that can be converted to stock due 2023 will be sold to qualified institutional investors under u.s. securities laws and accredited canadian investors. the company will give the initial buyers the option to purchase up to an additional $60 million of the notes tilray saying the notes will be convertible into cash, shares of the company's class 2 common stock or combination of cash and shares of tilray as class 2 common are common stock at tilrays election the company say going plans on using the money for working capital, future acquisitions, general correspondent expenses and to repay a plorj last month the ceo talked to jim kramer about raising capital especially since the company has less cash than rival canopy growth. >> you have less cash than canopy they have 5 billion isn't this the time to raise capital, there would be nothing wrong if you said yes we need more capit

. >>> another stock to watch today is tilray.hat is the giant canadian cannabis company shares dropped sharply at the close yesterday because tilray announced plans to offer 400 million in convertible notes in a private offering to institutional investors in canada that stock was up, down big. one of the traders favorites, watch tilray again today. >>> we are just getting started. we'll drill down on oil and the countdown to the iran sanctions which kick in in november. is $100 a barrel oil on the horizon? we'll talk about it. >>> battleground florida the sunshine state playing a big role in next month's midterm elections. we're live on the ground in orlando when "worldwide exchange" returns. does it make the short list? yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones. you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingr

joining us now, first on cnbc is tilray's ceo, brendan kennedy.im some trouble in the shot of mr. kennedy. >> we are not drawing the line in between technical difficulty. >> i was going to talk about workday. >> the entire country are already stoned and therefore incapable of broadcasting. >> the first page of the deck on canopy is grandma and stonedma always consider your company to be the best medical company. i know it is recreational today but you have done all work on anyone of all the uses of medical and 9/even in the united states why don't you talk about your breakthrough pioneer work. >> thank you for having me today. it is an exciting day in canada and canadians could not be more proud on achieving this mild stone. the eyes are on canada we currently see about 35 country in the world that have legalized medical canadas. i expected to go from 35 to 40 to 50 to 60 over the next two or three years. those countries are using cannabis based medicine as a replacement for prescriptions and painkillers and opioids. after today we expect addition

tilray, canopy, aurora. >> we hate puns. >> sinking double digits in the past two days. about we get to the traders we should note that tim is long on this space sits on the advisory boards for cannabis stocks. for alling of his disclosuring go to fast at cnbc.com. >> was this a sell the news tim. >> i think it was. the news about supply shortages and bottle next, even online or hacks or -- injury that's noise. the reality is this is the first time this is happening there is going to be kinks to be worked out when people were talking about this they weren't talking about how smoothly it would go ner talking about the addressable market, and companies in a first mover advantage in a world where you have to believe it's changing consumption trends nationally. that's what it is about. >> we had the dean of valuation on yesterday. >> from nyu i believe. >> although he is in san diego but he makes an interesting point. we don't know -- we can't really know the total addressable market we don't know what the uptake it on the ecreational side and th dahm that dedra talked about

opportunity to get exposure to cannabis through constellation brands you look at the other stocks, tilrayora. where do you think is the best best >> in the public markets, this kind of volatility is normal surprisingly low for a big announcement for a company like tilray with convertible notes to only trade down as much as that. we are used to price swings far greater, and those stocks specifically have seen those moves in the not too distant past when we look at this industry, there's so much opportunity across the value chain and across the investment landscape where certainly there is opportunity in public markets, but when you look at the high valuations, it is not surprising to see these levels of capital raises happening last week along, saw numerous companies raising tilray, gw pharma, gti last week, so it is smart for them to do that at high valuations but we look at the private markets where things are more sensible and could be acquisition targets for large multiple companies >> morgan, so many hopes seem to be riding on what happens federally in the u.s i wonder what you think

though tilray doesn't have the licenses to sell in three of the provinces.ther companies from aurora to aphria also had high sellout numbers, ranging from 30% to 60%. morgan, back to you. >> thank you >>> let's get to a primary player now, canopy growth, the first cannabis company to trade on the new york stock exchange we are joined by the chairman and ceo, bruce linton. thanks for joining us today. >> thank you good intro, aditi. >> in terms of what aditi just had to say, the fact that we have seen this selloff more broadly, canopy is down another 2.5% right now, what would you attribute that to? >> well, let's play what the intro said our products are selling out we're having to ship more continuously across the whole country because after 90 plus years of prohibition people are buying the product so we're fully engaged in pushing everything we have out to every jurisdiction in the country, while we're also growing rapidly internationally. so i think that tangible value thing is true and that probably the selloff is the stocks have gone up and people took

caroline: i'm interested in the fact that you have outperforming in canopy and tilray.an these companies sustain the edge they have? got into the market first. if we see more countries starting to legalize. -- would all of the greatest why would innovation remain in canada. vivian: they have such a head start in terms of the recent development they're doing with defensible ip around medical applications and r&d they are doing. they also have the scale. by virtue of the scale, they have been the first to be vetted and approved by government like germany. you can imagine as an entity goes to a new jurisdiction, saying we have been approved by canada and germany and have the capacity, that makes for a tough supporter. romaine: 140 companies go public in canada. a lot are listing in the u.s.. we have a lot of companies on the edge of it. do you sift through 100 plus companies and decide which one will be the winner out of all of these? discover do not cannabis either so we favored scale. the management teams bring in real competencies into the organization which we think ma

brendan kennedy of tilray spoke with scarlet fu on the day of pot's legal debut in canada.global growth opportunity, why you are seeing alcohol companies, beverage companies, pharmaceutical companies desire to enter this space, because they are hunting for global growth at a time when there is not a lot of global growth. it is $150 billion to $200 billion opportunity over the long-term, and i expect multiple hundred billion dollar market cap companies in this space in the coming years. scarlet: how should investors value a company like tilray, a tobacco company, health care company, consumer discretionary? brendan there are elements of : all three. they are reflected in the value. the cannabis industry is disrupting the pharmaceutical, alcohol, functional food and beverage industries, and to some extent the tobacco industry. we became the first cannabis company to ipl -- to ipo on the u.s. exchange. we were optimistic about the investor interest, but even we have been surprised by not only interest in the u.s., but from around the world in this global growth opportunity. sc

. >>> as we head to break, look at shares of cannabis companies tilray, canopy growth.tinuing wild swings as canada is set to legalize recreational marijuana tomorrow we look at the companies to watch later this hour. >>> and this afternoon, don't miss the exclusive interview with goldman, sachs new ceo david solomon on "closing bell" 3:00 p.m. eastern. a lot more "squawk alley" still to come. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. you're in the business of helping people. we're in the business of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. u

looks to be doing so with issuing bond convergence. >> 50% move for tilray, mike, in perspective. >> more capital if you had an elevated stock price and you went out to sell new common equity to institutional investors, they might say no thanks. convertible note, the issuer gets credit for how volatile the stock is there's more willingness for the buyers to take down if you have a volatile stock. >> and brings us back to the point when everybody said they are a takeover target and the stock ran up too high. >> priced themselves out of a strategic fire. >> talked about exuberance and risk-taking it and do you see any of that in the pot stocks? >> i do. i think what's interesting is part of the reason why this has been largely an unloved bull market for nine and a half years is that so many of the most exciting stocks have remained private, so the most exciting companies, airbnb, uber, or so many companies and private markets have froep dramatically and any time there's a which have for making speculative gains people file in last year it was beconand this year it's can in a bice stock

cronos, conpy, tilray, aura all getting hit. will the event in canada be a sell the news event in looks like it, tim what do you think. >> i think you have a lot of different dynamics the canadian lp, the sbig integrated companies up there are not cheap on any multiple. some are choomer than others i don't think we know the global total addressable market that's one of the things the bulls say you have no idea what the consumption trends are and where it goes. if you look at the market, the big lps sold off hard. med men was there. u.s. over canada is the trade. old school versus new. u.s. valuations are significantly cleaner this is a function of the capital markets. this is not necessarily where are better companies made. bottom line here, the industry is it starting to split and become more sophisticated. what i mean, pfizer if they come in this industry they are totally different than deej o or proctor and gamble the verticals are taking hap this market needs to take a breath and it wouldn't absurprise you sell the news. but

benchmark, a good firm put a buy on tilray. it could go higher. what stops this bull rally?eral reserve really is only thing that can stop it at least artificially before it runs its course. trade war, geopolitics can cause a dip here or there but those would be great buying opportunities. leslie wants to know about dividend stocks. how are dividend looking? dividends are good. corporate america is focusing on afterthought. they're buying back stocks. nonetheless look at consumer staples like general mills. doesn't have the prices power but owns amazing brands. the stock is extraordinarily cheap, pays 2-dollar dividend. that is 4.6% yield. my buddy david nelson to break these down. first of all on cannabis. where are you on cannabis? a lot of folks don't believe isn't. >> i can't go there. it is chaotic and very much a casino atmosphere. you mentioned tilray, there was a a time couple weeks ago where you could get 200% on the borrow. better than owning the stock. charles: it is. so you have constellation brands that made an investment -- >> i'm not denying -- charles: ceo of

pot stocks like cronos, tilray, canopy growth and aurora cannabis sold off in trading today. dedra bosas in st. en john's newland tonight. >> 5, 4, 3, 2, 1. >> as the clock struckidnight? st. john's history was made. >> recreational marijuana became legal in canada. all day starting on the east coast and moving west with the sun similar scenes of celebration played out as prime minister justinrudeau makes good on his 2015 campaign promise. the first sale went to ian power in new finland who said it's his dream to be the first person to buy the first legal cannabis in ktd. >> i never thought it would be . le and then when it started rolling about ten years ago, i've helped people to get medical marijuana. i'm happy for cannabis users across the not just me. but people wanting to have a safe recreational past time and for m research for cannabis in the future. >> other countries that are moving slower toward easing marijuana laws like the u.s.re watching the rollout csely. uce linton, ceo of canopy growth, canada's largest pot company says regulators from europe to south americ

clinical trials to make a true pharmaceutical use case for those products >> vivienne, you cover tilray and you have an outperform on all three, if i'm an investor and want to know which one will give me the best bang for my buck, lou do i go into will tern fundamentals of this relatively new market in. >> certainly, constellation strand the best in class beer company selling core are na and modello across the states. in terms of pure play stocks canopy growth is our top pick. >> vivienne, let's say cannabis use increases recreationally, what happens to beer, what happens to spirits what happens to snack foods? is there an ancillary effect >> what we have been arguing about two years now, we think alcohol and cannabis are substitutes. we think the beer is most exposed. while cannabis is growing if popularity with every age cohort and consumer demographic, it tends to show outside popularity with younger men and so that is your quote beer drinker. >> vivienne, great to see you. thank you for your time. >>> shares of microsoft among those helping to boost the dow today the stock up more t

shares of tilray down 20% this month. did the pot bulls just get too far ahead of themselves?lus the s&p 500 down more than a percent. if it falls again today that would be 13 down days in the last 15 sessions we've had much more on the markets, when "power lunch" returns. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, ♪ ♪ ♪ ♪ comfort. what we deliver by delivering. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and th

really hard this weekend because i was so excited it was 48 bucks and now it is at 59 >> you had tilrayn yesterday, he's going to join us. >> you can't really borrow that stock. the one that you can borrow is canopy so it will be short in cano canopy the other side is this is a new york stock exchange, they would not let him ring the bell. they'll let him list but not ring the bell bruce menti bruce mentioned that over the weekend which odd. so brendan kennedy -- look, i think they're doing the right thing. the people who buy the stocks went nuts. >> they did. you pointed this out you can't short the stock. it is possible the cost of borrow is something anybody have seen >> right >> that's why they're going to short canopy i think people are trying to knock it down. they woiuld be better buying ban stocks >> do you think official legalization makes them candid of their plans >> consolation is going to have, they'll have every kinds of choice and they'll have it ready. >> there are others where you try to press like pepsi. >> it is interesting and the other guys are being left behind wha

. >> how should investors value a company like tilray, a tobacco company, health care company, consumerry? >> there are elements of all three. they are reflected in the value. the cannabis industry is disrupting the pharmaceutical, alcohol, functional food and beverage industries, and to some extent the tobacco industry. we became the first cannabis company to ipo on the u.s. exchange. we were optimistic about the investor interest, but even we have been surprised by not only interest in the u.s., but from around the world in this global growth opportunity. >> we know food and beverage companies have been trying to get a piece of the cannabis action, constellation brands or coca-cola. what is the one risk they are underestimating in the space? risk.ing is the biggest i believe we will see countries 3, 4, 5 next couple of years. that is the big unknown. we know other countries are looking at this regulatory framework in canada and looking to implement a similar system. >> coming up on "bloomberg best," we shift from cannabis to cryptocurrencies. one person thinks bitcoin will rally again

and tilray dropping sharply now around the close yesterday.u know, because of the convertible note, that's why it was down $400 million in convertible notes. and a private offering to investors in canada was announced. >>> shares of cloudera surging and plans to america in an all stocks transaction both companies analyze data. >>> kevin warsh is former federal governor and a maim mentioned frequently on the short list for who was going to be the next fed chairman kevin who knows this stuff inside and out lucky to have you today. kevin, great to see you. >> it's great to be back here. >> i know we were talking for a few months when you were going to come back on. it's a good thing we're lucky, rather than smart, because we picked a good day. you look at yields across the board they're all up sharply yesterday, the two-year note up at its highest since 2011. the five-year, at its highest since 2008 so what's happening here >> what's happening, nature, gravity. ten-year should historically and theory red theoretically to the gdp history shows tha

cronos and tilray shares have raised. to coca-cola and speculation coke will invest in aurora. that makes sense. people are drinking less soda and coke is looking beyond soft drinks. telling cnn it is watching the growth of cannabis infused drinks. it won't hit u.s. stores soon. cannabis is still illegal. what can you do if you are traveling in canada? if you live in a u.s. state where pot is legal, like colorado, you cannot cross the u.s. border with it. don't try to fly with it in your carry-on. the exact rules are different across different canadian cities and provinces. business travelers, check local laws before you go. >>> global stocks higher today. volatility back on wall street. it has been a rough october for stocks. dow lost 300 points yesterday. now down 4% for the month. the nasdaq's october losses is 7%. selling yesterday accelerated after treasury secretary steve mnuchin backed out of the conference in saudi arabia. no other u.s. officials will attend. global investors have a long list of worries. raising i

. >> tilray is one of them. kennedy: rod rosenstein is off the hot seat for now. he's the attorney general for all innocents and purposes. he was scheduled to meet with two house committees tomorrow to discuss reports that he wanted to wear a fire to invoke the 25th amendment against the president. two senior fbi officials told the bureau they think he was quite serious. now a handful of house republicans are threatening to subpoena him. sebastian gorka is here. he's the author of the book "why we fight." he's not apologizing about the fact it's on sale now. let's talk about this. do you believe that rod rosenstein was trying to overthrow the president? >> i do. i met him. each's weaselly? >> i cannot confirm or deny that allegation. he's the quinlt sense brewe bre- bureaucratic survivor. that statement was a non-dee nile denial. ken are said, i was joke. >> the deputy attorney general joking about the 25th amendment and wearing a wire into the oval office? you don't joke about that whether the president is a democrat or republican. the decision not to go to that

. >>> speaking of hyperbolic stock moves, tilray, canopy, cronos pull back after the red hot run. that legalization in canada would be a sell the news event. >> it has. the buzz is wearing off. i couldn't help myself. >>> let's get to sue herera for a news update. >> good morning, morgan. good morning, everyone here is what's happening turkish investigators arrive at an istanbul car park where a vehicle belonging to the saudi consulate was found. the mercedes car abandoned by the consulate two turkish national drivers several days after journalist jamal khashoggi went missing. >>> pakistani police say at least 19 killed, 35 injured when two buses collide, and many injured in critical condition. both buses were speeding when they collided. >>> the israeli military shot and killed a palestinian that attempted to stab a soldier in west bank, the incident in hebron a frequent flashpoint of violence. >>> prince harry presented with a gift of australian swimwear. skimpy swimwear. during an interview with invictus games, he commented on me megyn saying she felt great. >>> european market

there are a few big players, got a lotnopy tilray of attention last month so you will be watching for valuations are running on future hopes and expectations and not on fundamentals. we saw canopy today planning to issue hundreds of millions of new shares to make a neck position and the stock is up 8%. it's completely illogical. do the bankers think there will be crashing and burning? >> it's tough to say but a lot of the big banks are not really going into this space and for good reason. they don't really know how to look at these companies. it's a new space and at the end of the day, a lot of these companies are tiny. very few of them are making any profit and very few have revenue. investmentmaller banking is chipping away in making inroads but you still have yet to see the larger banks and it because of the uncertainty. have also seen some new types of issuances including convertibles and different securities. convertibles have been used while in this sector and have been a popular way of doing it. there has been a lot of but deals where the invest -- of bought deals so it's reduc

talking about the two of them, it's interesting if you look at bitcoin chart and overlay it with tilraynpy, cronos, it's asimilar buyer that's out there. has nothing to do with each other yet guys are looking for outer limits to the risk spectrum. >> less than liquid markets with a lot of retail investors and parabolic move. >> the chicago mercantile exchange, bitcoin doesn't make a dent if you look at it, august -- i think august contracts were up 18% over july. so the growth in cmes continues to be there. valuation is a concern chicago mercantile exchange. >> do you think that would be a catalyst for bitcoin >> definitely. there's so much money that says i have to wait until it's further along in its evolution to be a tradeable security. >>> netflix reportedly looking to customize its original content with choose your own adventure. i'm melissa lee. you're watching "fast money," first in business worldwide. meanwhile here is what else is coming up on "fast." ♪ ge we bring good things to living we bring good things to life ♪ >> not in the last 18 years, which has seen ge lose half a tr

this is a great stay in the pot sector, unlike tilray which is a.his is a great play in the marijuana place. liz: we may have a "brexit" deal on monday by some key issues. we're waiting for a little bit of breakup between the tension between china and the u.s. or is there some other catalyst you see to push stocks back into record territory? >> liz, i don't see it at this point stocks going into record territory. i see the end of this term of the bull market. interest rates are getting higher. they will cause more inflation. projections going forward with these earnings are going to be not so positive because they're going to have higher wage costs, higher loan costs and that will cut into the bottom line of profits. i think we're kind of nearing the end. most people would have been thrilled a year ago to get 3% on a 10-year. they skieded to wait. i think greed and fear of missing out are the last leg of this rally will play out here. i think we'll start to see slowing. i don't think we'll see any big rally. liz: you dead momo and krono and now fomo

the stock up 20% since started trading on the nyse pch tilray ending up 5% but down 32% month to datestock is up 468% since the july ipo and aura shares rising 11% in the regular session but the stock is down 29% on pace for its second worst month ever. it's down 21% since it went buc public on the nyse last week also a wild ride for occur a leave which went public in canada on monday np shares were initially offered at 11.ha took a nose dive, rebounding since. the stock ended up just short of 10%. gnp securities put out a note on the company earlier saying with the multistate platform and production base, occura leave has emerge as the new industry leader among public u.s. cannabis companies melissa, back to you. >> thank you so much adidi roy in san francisco for more let's welcome the chairman of occura leave boris jordan welcome to the show. >> thank you. >> you are a vertically integrated cannabis operator in the united states that listed in canada do you everything from grow to distribute. >> that's right. we -- every state because of national federal regulations we have to both

. >>> look at tilray a canadian cannabis producer. one analyst raised valuation of the stock. not working. tilray on the downside today. >>> here is headline for you from fox news, quote, engaging the enemy, why trump is on a non-stop media campaign. the guy who wrote it is howard kurtz and he joins us now. howard, i will tell you why he is on a non-stop media campaign. he handles the media really well and he knows it. what is your explanation? >> part of my explanation the midterms is coming up, even by trumpian standard, fox news, "60 minutes," taking questions multiple times a day sometimes at great length is dominating the news agenda. i thought this was strategy cooked up by his advisors. white house insiders say it is all him. the president feels like he is the best communicator on the team and he wants to be out there. stuart: what do you think about the "60 minutes" interview? i thought he handled leslie stall really well, handled interview by a leading journalist. i thought the man handled it well, direct, rapid fire, honest, open. open. i'm not used to that for a pre

. >> you are not advising people to buy tilray? >> i have not done that. i was before the big spike. the people think that october 18th in canada you will be able to cruise over the border and knock back a couple, a six. the six is a form. it's for beer. >> whatdo we do? you go and get beer. >> i'm aware of what it comes in. >> todd is our producer here. he is right over there. i think he is listening and decided that you don't drink, don't eat and you don't go out. what kind of life does he lead you know the chuckles candy? >> no. >> i was going to fill it with cannabis and throw in a little thc for you. >> that sounds horrible. >> i would like you to do that with a couple of gummies. >> david is going to have kindler on today. >> i have chocolate thc for him. >> you are literally the candyman. >> the candyman, mr. trade war. >> and mary jane jim. >> when we put it all together it will blow your mind. >> i can't wait. >> you have to stop talking now so we can go to an ad. >> a tale of two companies, one being slapped with a sell rating. we keep our eye on

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industrials are up by more than 200 points energy and materials are leading the way for the sectors and t l tilrayt had been up 20% now up more than 9 1/2% and semis have a good day. invidia jumping and advanced micro and qualcomm moving higher as well. >>> california becomes the first state to require public companies to include women on their boards companies headquartered in the state must have at least one woman on the board by the end of next year. well, this new law, will it work or could there be unintended consequences joining us is the author of "winning" and the president and ceo of the conference board, both, of course, cnbc contributes. susie, the goals are noble many european company, norway, spain, countries rather have these as well and sort of these mission statements do you think though there is any risk to any kind of unintended consequence? >> well, if they do it too quickly or thoughtlessly, then, of course, there could be people who -- women put on boards who shouldn't be there but it's hard for me to see a downside in general because i think it's good for companies, i was --