david einhorn's green light..34% this is bloomberg. ♪ >> this is "bloomberg daybreak," and coming up in the next hour. alix: this is "bloomberg daybreak," and this is the bloomberg business flash. >> apple remains a core large-cap tech holding, in an increasingly risk off environment. apple has outperformed. it reiterated price target of $220, 4% higher than where they ended the year. spencer newman will be the new chief financial officer. he is on leave. the current cfo plans to shut down -- step down. a computer follow-up this week pay $75 for to first class business trips. that is your bloomberg business flash. alix: return to wall street beat. first up. mifid ii report card. one year since the regulatory haul. then david einhorn's really bad 2018. total your decline, 34%. the blackwater founder is launching a $500 million fund to invest in supplies that are needed in electric vehicles. david: joining us is jason kelly. remember mifid ii? alix: we have a whole program dedicated to this. david: what happened. j

haidi: david einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old greenlightital. it extended his annual decline to 34%. green light posted some of the of more's best returns than 20% in 2015. trading gets underway for a brand-new year. take a look at some of the superlatives, having such a rough year. generally the worst year since the global financial crisis. year thatertainly a investors are glad to see the back of. actually did manage to have a bit of again on monday, trimming is lost for the year somewhat, but still december was its biggest monthly slide of the record bull run. bear markets in japan and europe. just a bit of a recap, we also , with a firstng and a law since 2015. three months earlier it was at a four-year high. in treasuries the lowest month. that is the backdrop against which investors are starting 2019. if the new year but a lot of those concerns are not going away, higher interest rates, concern about slowing global growth, plus you have concerns about the u.s. shutdown, the political landscape in washington, you had a guess saying pol

david einhorn closing out 2018 with his biggest annual loss for greenlight capital. the firm's main hedge fund fell 9% in december, according to investor update. that extended the annual decline to 34%. industriesome of the best returns an early years but it has lost 20% since 2015. global news, 24 hours a day, on-air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. coming up, look at what is in store for oil prices after crude slumped to its first annual low since -- lost since 2015. we'll get the strategy for another volatile year ahead. stay with us. this is bloomberg. ♪ juliette: you are watching daybreak asia. we are having a quick look at markets here. have a look at what happened in the u.s. over the course of 2018. this chart showing that we did see december a positive one for u.s. stocks amid very low volumes, or least ending the years trade higher. but of course it was a terrible year in terms of volatility and for investor sentiment overall, the worst year for stocks since 2008. the w

one of the worst performers was david einhorn's greenlight capital, which saw the worst performance inar history. joining us is a bloomberg hedge fund correspondent. incredible volatility over the last month, and we just are referencing some of the difficulties that managers have faced. you would have thought the volatility would be good for would beds, that they able to trade around it and output rate has that been the case? >> technically output rate has t been the case? >> technically not, and excuse this time is the volatility was far from it, and you know, hedge funds always complain that there is lack of volatility in the market, and they were right. the vix index closed below 10 on 50 occasions. if you look back to the history they wentto 2016, below 10 only on nine occasions, so that was the level of all suppression. in februarynged last year, when all of the trades exploded. and that really killed a lot of hedge funds and their returns were smashed. again, that happened in october. they lost money, and december was cruel. if last year hedge funds' returns were turning out to b

funds are under pressure cnbc obtained figures indicating that third point lost a 11% last year david einhorn'sreen light capital had a 2018 also to forget the firm posted a 34% loss over the year leslie picker was the one to obtain those figures she looked at how the sector struggled over the past 12 months >> reporter: fewer funs, less leverage and responsible investi investing, these are three key themes in the hedge fund industry that will carry into 2019 first, fewer funds 2018 was a brutal fund for hedge funds, with some high profile meltdowns, more hedge fund also shut their doors in 2019 in recent years when one hedge fund lost assets, another one often gained them. but many expect the industry overall to struggle with redemptions in the new year after a difficult fourth quarter. seco second, in 2019 as rates rise and more volatility takes over, certainty may be more difficult to find. therefore funs are expected to be more cautious and de-lever in the new year. >>> and lastly, responsible investing. in an attempt to sure up burnished reputations, hedge funds have turned to responsible

david einhorn, biggest annual loss ever, and the most read story is chinese xi jinping seeking talksify taiwan with the mainland. there is are business flash. einhorn closedid out 2018 with the biggest ever 22-year-old green light capital. it extended its annual decline to 34%. we might posted some of the best returns in its years, but has in 2016. losing 20% posted monthly gains in may and october, underperforming its peers and the broader market. cfo, hehas hired a new has been activision's finance chief since may, 2017. he is on paid leave, and his nd.loyment will e ,ules for the largest lenders the new regulations demand big banks must separate retail operations from investment banking to avoid a situation where depositors could be forced to bail out a bank's riskier divisions. ring fencing could make it more expensive for banks'daily activities. manus: thank you very much. been on a wild ride in 2018. three months ago the whole market was talking about $100 oil. just a few weeks later, crude plunged into bear market territory. since early october. what is the state of play going

david einhorn saw a decline of 34% in 2018, that's his worst performance in the 22-year his been running it. we are still waiting for the final numbers of the year at pershing, but they have seen losses of 9.3%. so here's the question. how do we all make 2019 a year of many happier returns? to our traders, who you guys made some great calls in 2018. thank you, thank you. i want to say happy new year, guys. >> happy new year. liz: thank you. alan, december caused serious portfolio rot that even smart money didn't see coming, but what are you going to do differently this year? >> first thing, let's remember that december, we gave back gains. we were down for the year but modest back-off if you look at about 5% in the s&p for the year. those were gains given back. the sentiment has shifted a little bit. you are seeing people buying dips now. we have seen a key reversal in the market where last week, we made the new lows and had a higher weekly close so that's very much a positive. i think the hedge fund guys can sometimes get stubborn because they have so much money to work with, they think

plus short seller david einhorn piling it on, calling out tesla in a letter today, saying supply shortages will soon shift to a demand shortage. so tesla shares are currently sputtering out. we'll be right back. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. at humana, we believe great things are ahead of you when you start with healthy. and part of staying healthy means choosing the right medicare plan. humana can help. with original medicare, you're covered for hospital stays and doctor office visits when you're sick. but keep in mind you'll have to pay a deductible for each. a medicare supplement plan can cover your deductibles and co-insurance, but you may pay higher premiums than you do with other plans. and prescription drug coverage isn't included. but, with an all

one of the worst major performers was david einhorn's greenlight capital, which saw the worst performanceear history. we are still digesting the performance of the hedge fund sector and the standout movers to the upside and downside. we will continue to do that at bloomberg. next, some of the stock movers this morning including taylor wimpey after it has been raised to buy at bankamerica merrill lynch. this is bloomberg. ♪ matt: welcome back to the european open. 40 minutes into the trading day and although we are looking at green arrows across indexes in europe, where seeing some indexes flirt with losses. for example, the dax in frankfurt is up .01%. looking at your mid-cap movers, we go to annmarie hordern. >> i found a bright spot in the the industry and that is germans auto-parts maker, second-quarter numbers where metzler says given market conditions, they point to a solid set of numbers. taylor wimpey up more than 3%, the u.k. homebuilder upgraded to buy and bank of america, sounding more of became a note and salvadorers ferragamo, cut to underperform by credit suisse and there is

david einhorn closed up 2018 with his biggest loss ever. the hedge fund fell 9% in december.tended the annual declines to 34%. green light posted some of the best returns in its early years, but has stumbled sense in a losing 20% in 2015. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. emerging markets took a beating in 2018. this etf's tracks stocks trading in a bear market. currenciesumping em as the fed raised rates and a trade war broke out between the , however aina potential slowdown in fed policy tightening could bolster em assets. some emerging market funds are dialing up their bets for 2018. -- for 2019. many see value in latin america and see political developers helping returns. rishaad: our guest joins us now. brazil figure in on your radar at the moment? have seen a rally in the currency since the president has been elected and come into office. he has to show the honeymoon is over and some results overall. has not assigned some posts, so it

david einhorn close-out 2018 with his biggest annual loss ever for the 22-year-old green light capitale fund fell 9% in december. that extended the annual decline to 34%. green light posted some of the industry's best returns in its early years, but has stumbled. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm stephen engle, this is bloomberg. yvonne: coming up, we breakdown china's pmi manufacturing data and see what it reveals about the growth outlook for the world's second largest economy. that's coming up next. this is bloomberg. ♪ rishaad: let's have a look at the business flash headlines. dismissing concerns tesla started to fall 2.5% monday. the recent buildup in the model three's inventory as natural as they try to me a tax credit deadline. the buildup is a sign tesla will face a loading demand. it is recommended to buy tesla stocks. expected tolix announce its hired a new cfo. it is tipped to appoint spencer newman. activision'sen chief since may of 2017. he is on paid leave and is e

investor david einhorn's green light capital ending with the biggest annual loss ever. in december. green light posting some of the industry's best returns in its early years, but stumbled more than 20% in 2015. netflix announcing it will --her spencer newman hire spencer newman, from blizzard entertainment. that is the bloomberg business flash. anna, tom? tom: thank you so much. know, we are as good as our team, and they are not only brilliant, but sometimes the "surveillance" team will get lucky. they said tony crescenzi, you need to start our year. definitive on short-term paper. bring up a chart, if you would. i have never shown this chart before. i am only doing this because crescenzi showed up in the early year. one-year, two-year yield. you have the normality between the two-year and the one-year. tony crescenzi, let's start with the why of the short-term paper market. why is the one-year two-year yield inverted? tony: this is the crystal ball. we know the fed in december raise the policy rates to 2.5%. here the markets are saying they will go back to the low 2%

those losses came in december thanks to dow dupont and campbell's a notable underperformer is david einhorn's light capital. he lost more than 34% in the year thanks to longs in air cap, lighthouse and green brick i know, joe, you could beat that i feel good -- i feel confident in saying that >> what's the index fund in the past four years? >> four years? i don't know >> better than those last two. >> yeah. >> people say you're on tv i did do that for ten years. >> there you go. >> i did >> you're right. >> broker with merrill >> i thought you meant -- >> no, no, no. i don't -- i'm saying it's not like i haven't tried i did a lot better than that >> the trick is getting pensions to give you money to do it >> was in 1982, though >> leslie, thank you. >>> coming up, apple and the rest of the markets taking it on the chin yesterday after a warning hurd around teard aroun. does tim cook suddenly have a credibility problem with investors? our next guest thinks so and he'll explain why after the break. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing busi

in our sleep could have done better than these guys that are billionaires, half of them you see david einhorneads together and lose 33%? i'm almost sure that the two of us -- >> you're going to put your heads together and lose 33% of whatever you could raise >> i guarantee we could do that. >> we might be able to do down 50%. >> we might be able to do down 20% though down 15% >> hard to be a value player >> that's not the only one and you pointed out we were singing dalia praises. >> this goes back o the index buffett argument which is throw your money in the s&p and look away >> i don't mean to take any satisfaction about all these guys losing -- >> you don't >> no. i try not to isn't it when you see these guys they're around town here and they're masters of the universe and they're naked emperors, half of them. i guess past results are no prediction of future performance. >> right >> you're also seeing 2 and 20 is coming down you can't charge that for -- you hear the deal. >>> joining us now to talk about the market conditions is stephanie lang with homrich berg also charles campbell from m