anna: an interesting line from david einhorn.ned about where we have got to with markets and he makes of high that there was no catalyst that we know of that burst the.com bubble in march 2000 and we do not have a particular catalyst in mind. this leads to the conversation we had, how far the rally goes. march 2009 was the start of the market rally. he was making the point that in the last year or two years you can make significant returns. manus: if nothing untoward -- a headline is coming in. bitda delivering earnings a shade before -- below with the market had expected. the market had penciled in 1.9. anna: let's talk about santander. let's get to the cfo of this business, joining us on the line. great to have you on the program this morning. let's talk a little bit about the brazilian side of the business. that seems to be where you have a big uplift in profits versus this time last year. how strong can brazil get from here? guest: good morning. clearly in recent months, we economic much better conditions in brazil. the riel

david einhorn's greenlight capital has settled down on a pitch for eu general motors shares.hat is after gm's board voted unanimously to reject. the hedge fund says the carmaker misrepresented its proposal but gm says guaranteeing it an event -- guaranteeing a dividend could cover might be credit rating of the automaker. imf directore christine lagarde is speaking to bloomberg in brussels. >> you cannot just identify one particular country because the whole system works together. when currency goes up somewhere it goes down somewhere else. assessmentt is the in a very cohesive manner. vonnie: u.s. treasury is expected to have a currency report this month. the imf will release exchange rates in july. that is your bloomberg business flash update. let's head over to david westin at the new york international auto show. with the president and ceo of volkswagen group of america. david? david: we are here with henry coogan. welcome to bloomberg. >> thanks, david. david: let's start with suvs. the story of volkswagen. tell us where you are. >> we are more known as the small car comp

do you know david einhorn? a few times. >> couple positions overlap. >> yes, yes, yes. >> one is general motors. >> yes. >> pushing for the stock to create two classes, one for capital appreciation and the other for the dividend. what do you think of the idea? >> it's not a good idea. i'm with gm management on that. i think a simpler and better approach for gm to take, will be hard for them to do that, but a better approach is eventually eliminate the dividend. it's a cyclical industry, why not go no dividend and gm has a really good capital allocation frame work for returning capital buybacks. in any case, buy backs are a better way to get money to shareholders because you don't have uncle sam in the middle. >> depress the share price? people are there now partly attracted by the dividend because it was high when the stock was cheap. what happens if they leave? >> i can't see gm -- first of all, we shouldn't be making decisions because of stock price. that's not a good idea usually. i'm not saying this to driv

david einhorn split the stocks into two classes. >> i harness floating the theory that some people buyingthe earnings stream because it had very good profits. some people buy for the dividend because price is low. because it is it a depressed stock. there is a good dividend yield on it. one of give investors the choice to either by a dividend stock or by a regular stock and capture the earning stream and take advantage of share buybacks. once you have these two different measurements, to have greater value unlocked because people can buy what they want. gm does that the evidence that splitting the stock in this way, it's almost unprecedented, will pop the stock. it could hurt their credit rating because he would give an ta dividend. -- it would guarantee a dividend. >> a flashy new york unveiling earlier today, the company showed off a branding smartphone. it is been a rough few months for samsung. we had the exploding smartphone. now have the heir apparent caught up in the corruption scandal. can one phone really turn all this around? >> i think one phone is a very important first step t

this year's lineup includes bill ackman, david einhorn, jeffrey gunlock and much, much more.e there covering all the action. the best part is that the conference is to help fight against pediatric cancer. here with a sneak peek is one of the founders. also joined by mark row, who had the opportunity to pitch his top fick to the audience last year. we welcome you. mark, i'll start with you since it's not too often we get a short idea that works out. tell us about dex con. and whether you're still in this trade. >> still in trade. i think the it's a great opportunity, but really, the short thesis is predicated on competition and the market really appreciate iing the opportunity and those combinations have led to an aggressive lal vegas. >> a lot are positive they're going to the second half of the year because the reimbursement environment in the u.k. and france is going to be a lot better. >> that's right, but also the 6 70 g should be out and hiing the market. with this kind of valuation, a revenue miss will be the catalyst. >> evan, the sohn conference the place where ideas

we know right now in the last hour or so, general motors has filed a statement with regard to david einhorn, hedge fund manager and his green light's proposal to take gm and slit it into two different share classes, one paying a heftier dividend than the others. general motors has reserved the preliminary materials filed by green light capital. the company's evaluation remains unchanged. gm presented the dividend idea to the rating agencies fully and fairly and their public statements issued clearly indicate that they understand the idea of all of its facets would represent a credit negative event if implemented. they are referring to, among others, a moody's report saying if gm did adopt the green light proposal, anyone it would result in a credit watch negative event for the company. it is a story we are watching consistently. that's the latest we have for right now. as we know more, we will bring that to you. back over to you. >> thank you, dominic chu. when we go back, we go live to the new york auto show with conrad. we will talk trade and trump and the product pipeline when "squawk al

scarlet: david einhorn's response was that is a red herring. does he have an argument?uest: i would listen to management. if it is a red herring or not, management is the one who has to live with that if it should occur. what do we dos, with capital allocation going forward from that standpoint. you have to give management a degree of understanding given where they have come from. flexibility is paramount to them. scarlet: do you own gm? guest: i do not. scarlet: is there a reason why? would you be more willing to or more tempted to with a different structure? guest: i think this is what of the things, if you flip these chairs and they are paired up, from an income standpoint it doesn't address that. at a yielddebt trade of 5.5%. if it is purely an income component, maybe you can go that route. be moreit would interesting as opposed to splitting these dividends. one share class over the other? i think that would be problematic. >> one of your picks that i find interesting is bank of america. they have done very well post election but are very interest-rate-sensitive. th

. >> all right, so, melissa, david einhorn's green light capital is out with its letter and they just told investors they earned 1% during the last quarter and that trails the s&p 500's gain of 6%. that's according to the hedge fund's letter to its investors published today. the firm said it bought three new positions stocks wise. first of all, xerox off conduit, then perrigo and an unnamed financial institution that was not disclosed due to policy on european regulation. also want to point out, at they said at the end of the quarter, largest were air cap, buyer consol energy, gm and gold. the partnerships had an average exposure of 108% long and 80% short. back to you. >> thank you. just coming up on the halftime report. >> we have a big cap blitz. straight ahead. 3m, caterpillar, coke, dupont and mcdonald's reporting. plus, two big banks hear it from the shareholders. citigroup and wells fargo face the analyst and we are in those meeting. the halftime report is back in two minutes. but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actu

reality at the likelihood of tax policy changes to drive company earnings has slipped, so says david einhorn in a letter to clients. the nasdaq closed above 6000 for the first time ever yesterday. he warned previously of inflated equity prices caused by central bank is in. the firm said tax reforms pushed by donald trump could be a boon for economic growth and favorably affect [inaudible] global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . guy: thank you. -- up on that einhorn idea. details on what has been the great driving forces of the trump rally. the u.s. president said the tax reform and -- will be announced. it will include a 10% tax on the more than $2.6 trillion in earnings that u.s. companies have stockpiled offshore, mainly tech companies. sachs'sg asked goldman chief economist about tax reform. back's we expect something that deficitit -- not decimat neutral. boost --rs not modest boost to growth. guy: let's get another take on this, bringing in mark cudmore. let's talk

likelihood of policy changes to drive earnings continues to slip and that is the view seen by david einhornnlight capital. they say the prospects of tax reform continues to dim enthusiasm. that is your bloomberg business flash update. of assetkkr's head allocation henry mcvey thinks europe is an attractive place to invest. here he is speaking with erik schatzker on why he is so positive on europe. we do a lot of quantitative models, on the ground research. just the monetary policy. when you look at the ecb with zero interest rates, that has a huge stimulus affect on the economy. a very similar picture in the u.s. a couple years ago where monetary policy was moving forward but there was no cyclical ignition to drive growth, until housing picked up. that happened in the u.s.. in europe right now we are seeing house prices go up, but we are not seeing a lot of consumer lending activities. the transition investors should look for is from monetary policy to the cyclical parts of the economy, including housing. right now, monetary policy is still dominating but if the cyclical components -- but o

that is according to david einhorn's greenlight capital. the cautionary note came as the nasdaq closed yesterday above 6000 for the first time ever. einhorn has warned previously of inflated prices caused by central bank easing. the firm said earlier this year that tax reforms could be a boon for economic growth and favorably affect some positions. the latest letter has revised the more cynical outlook. marine le pen as sought to soften her position on europe. speaking on the country's most-watched television channel, le pen said the euro has been a weight on the french economy, but refused to be pinned down on whether she wanted to leave the single currency, a position she's previously championed in her campaign. u.k. prime minister theresa may will host jean-claude juncker and the e.u. chief negotiator michelle bonnier at downing street later. it will be her first face-to-face meeting with ba rnier since she took office. this afternoon, may will face labor leader jeremy corbyn for the final prime minister's questions before the june 8 vot

reporter: david einhorn ramping up pressure on general motors to split its common stock into two classesthe move comes as einhorn's hedge fund greenlight capital dominates through new candidates for the company's board and also accuses gm of misrepresenting his proposal. to investors and rating firms. bloomberg is reporting the automaker has drawn attention for upping its inventory here in the u.s. but now the company says it is only building a pitstop because it plans to idle truck and suv factories for 10 weeks in order to retool them for the new models. back to year. maria: a lot of pressure on gm stc tesla increasing in value. >> elon musk either is the most brilliant guy ever maria: lucky >> or desecrate a short squeeze i've ever seen in the history of the market. the idea that it's valued more than gm and ford is absolutely incredible. there has to be a short squeeze going on if not based on multiple. >> einhorn is pressuring gm. he doesn't seem to be getting very far thing. i don't know where that's going for him. another tech company getting attention from investors. maria: does

david einhorn.t do you think it is about the robin hood foundation that attracted their interest. >> you were a former citi group man. >> i am. i worked at citi for about six years doing alternative investments and buy side. i understand the analytics. i think that's one thing that robin hood foundation is unique at. robin hood is data driven but heart led. robin hood wants to know what is working. i think robin hood is also a unique platform in the fact that robin hood serves as almost an incubator where we can be an importer and exporter of what's working. if it's working elsewhere, bring it to new york. if it's working in new york, bring it elsewhere. there has to be a way to share best practices to know the issue of poverty doesn't have geographic boundaries. this is impacting communities, rural and urban, whether you're talking about hillbilly or wes moore, this is urban, rural and this is real. >> charitable deductions. how much do you worry about the charitable deduction going away in terms o

are with you david einhorn or mary ba a?e's trying everything she can to try to change the product line. look, this is a very challenging industry. first of all, the valuations are the lowest in the s&p and the lowest in the s&p because of heavily unionized shop. you're not allow to go to mexico. this is a part of the new trump trade that we don't talk about enough which is the sell general motors, sell ford, you can't make the rationalization moves that at least used to make labor more realistic. the sales aren't good. there's a good list in "usa today" of five reasons why the auto companies are hurting. it doesn't matter who you nominate. the dogs won't eat it. >> you want to buy or sell united? i'm thinking you might buy united. because i think they're going to be fine. >> thank you for mentioning that. i'm flying out to oregon to visit my daughter and she said, you can't fly united. the delta numbers are firmed. the stocks which have kind of languished are ready for the next leg. i think the idea that if there wasn't suc

. >>> and general motors has revealed more details about his discussions with david einhorn.irst reached out last august and it had several clugss with him since then. gm has come out against his proposal saying it would endanger its investment grade credit rating. >>> on today's economic agenda the paycheck jobs small business jobs index is out at 7:50 a.m. eastern time. we will bring you that data first right here on cnbc. >>> february trade deficit figures are out at 8:30 a.m. eastern time. and that's followed by february factory orders at ten sclook a.m. fed corner dan tarullo will be speaking this afternoon. he is stepping down from the fed tomorrow. >> on today's washington agenda, president trump plans to hold a town hall meeting with about 50 corporate leaders to talk about the ways to improve the business climate. among those expected to attend, ceos of citigroup, blackstone, jetblue, mastercard, new york stock exchange, and others. discussions will likely focus on infrastructure, modernizing government, workforce development, and creating a pro-business climate. and