david einhorn buying shares of twitter and he thinks the company has a good shot in the lawsuit versusn musk and 'lha tt story and a lot more "power lunch." this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. >>> welcome back to "power lunch," everybody. it's no secret that tech valuations have fallen for 2022. can that mean that some companies are ripe for a tickt takeover our next three, amazon, alphabet can go on a shopping spree m mark they bought a health care company last week. they bought a gaming company a few months back. do you continue to think that they are in the market and if so, what for >> it's a great question you're absolutely right. microsoft has been shopping. new management a newer management team increased significantly the amount that the c

. >> reporter: it is so einhorn is nope more for sparring with musk over tesla shares and now he's onhe merger and that it will close. there's a theory that there's a $17 per share upside if twitter prevails in court, and a $17 per share downside if the deal breaks, so kind of 50-50 is how he's marking it, and 99% of the time the deal like this will close and he believes the delaware court sin sentivized to follow the law f.musk were to get off the hook, it would invite many more buyers or more suits and, you know, it would call into question the credibility of the court as a whole, so specifically in the report or in the letter he, quote, by saying that in 2019, largely in relation to tesla, the accepted reality appeared to be that elon musk is above the law. he was half joking, half serious, but he believed the law would catch up to him at some point and said that it hasn't. now he says that the quip that musk is above the law has become a widely held belief, so it's that notion that the laws won't apply here explain partially why twitter is still trading well believe at 54.20 share

bruce einhorn with the latest on the war in ukraine. the fed's neel kashkari says they will need to keep an eye on inflation and to do what it needs to bring the prices down. we will talk through the market impact on bloomberg. ♪ >> think jay powell said things that to be blunt were analytically indefensible. he claimed twice in his press conference that the fed was now at the neutral interest rate, calling it 2.5%. >> we're going to do everything we can to avoid recession but we are committed to bringing recession down and will do what we need to do. we are a long way away from achieving an economy that is back at 2% inflation, and that is where we need to get to. manus: that is the fed president and the former treasury secretary larry summers. joining me now is skylar montgomery koning, senior global macro strategist at ts. rolling back the dovish powell, how misguided is powell suggesting that 2.5% is neutral? is it wishful thinking, or indefensible, good morning. skylar: i think 2.5% is quite low, we see it as higher than that. we t

dani: bruce einhorn will be covering the fbi raid on donald trump's home. jennifer zabasajja is in nairobi for the kenyan election. and annabelle droulers will take you through markets. the fbi has rated the florida residents of donald trump as part of an investigation into whether he took classified documents from the white house when he left office. a development that could possibly overshadow his run for presidency in 2024. bruce, bring us up to speed. bruce: dani, we know that the raid started i the morning and lasted until 6:00 p.m. the agents were looking for potentially classified material related to the investigation of documents that went from the white house to mar-a-lago, according to a person familiar. in january, the national archives retrieved 15 boxes of documents. the investigation is looking potentially into this. it is worth pointing out that the fbi does not just get to raid by itself. they have to have search warrant's, so this was signed off by a judge. former president trump has denounced this as an overreach by the department of justi

bruce einhorn joins me from singapore. -- bruce, what more do we know about actions from the united states to ukraine? >> there is a new package the u.s. is likely to announce today. it would be worth $3 billion. that would be the largest single package of military aid the u.s. has provided to ukraine since the start of the war. this comes a day after german chancellor olaf scholz announced a german package of military systems worth about 500 million euro. there have been questions people have raised about whether there is going to be a falloff in support for ukraine among the western allies as the war drags on. so far what we are seeing from these announcements is that the support is still there from western governments. manus: and of course we have the fallout from alexander dugin's daughter. let's talk about that also as well. >> the issue is russia has accused estonia of assisting the assassin to flee into estonia. russia has made these accusations without providing evidence. estonia has rejected this as baseless. it i

einhorn confirms that theory because he bought the stoke. he think it is going to be higher.it is going to happen one way or the other. it will be very interesting, liz. liz: retail investors need to beware this is a game as you said between a lot of big money people. charlie, thank you. we need to check the markets. dow increased losses. i told you this, we had about a 320, 330 point swing today from trough to peak. we were down 224. up 31. we had been up 14, down 34. nasdaq at its lows was down about 118. we are down 31 at the moment. so we'll call this middling, maybe as i said a jump ball but at the moment the bulls are winning. all right, by the way the dow crossed unchanged line 60 times. revlon, guys, it was up more than 100% just a moment or two ago. we showed that to you, hitting a session high up $9.90, after a u.s. bankruptcy court judge approved a $1.4 billion loan to proceed, helping the cosmetics maker continue operations during bankruptcy. it is moderating just a tiny bit. we have revlon up 88%, to $8.44. please note the low of the year which was just kind of r

bruce einhorn in hong kong. mark critz -- markets are moving. annabelle droulers is in quarantine in hong kong. there is a lot to deal with. that might be a breaking headline. annabelle escapes from quarantine. we look at the trade numbers. annabelle: we will pick off and thank you for that wonderful introduction. there was a good report for us and export growth was strong. the trade report has a record hit, coming in at $100 billion, a growth of 18% on the year. in terms of equities, china is now up, although the session is still looking weaker this afternoon. one of the downsides is that there are a lot of risks around the fed and the chance it might be hiking by more basis points. that is one of the main drivers today. dani: as we wait for the new thriller, what is the latest with hong kong using -- easing? manus: we just hope that police will not show up at your front door. annabelle: basically, the government said the government -- quarantine requirements will now be having a big change. coming into the press conference today, that was the

joining us now is bruce einhorn. what is the latest?ce: the washington post is reporting that among the documents that agents were searching for when they went to mar-a-lago a few days ago, they were documents related to nuclear weapons. this is according to a person familiar. we do not have any further information from the washington post report about what details that might include, whether these were nuclear weapons from the u.s. or from other countries. we also don't know whether the fbi retrieved those documents related to the nuclear weapons. we also know that attorney general merrick garland -- sorry, go on. francine: how quickly can we find out how this has played out? bruce: it is unclear. attorney general merrick garland asked the court to unseal the search warrant that they got from the court initially to go search trump's home. in order to do that, former has to agree. he has now issued a statement on truth social saying he will not object to this. he encourages the release of it. it is interesting because we will probably b

bruce einhorn on the latest between the u.s., china, and taiwan. coming up, the u.s.l dial back rate hikes eventually. we discuss that and more with our next guest. this is bloomberg. ♪ just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done. francine: welcome back to the open, 30 minutes into the trading day. the fed hedge, fomc will slow rate hikes but noted risks of tightening too far and becoming entrenched. china downgrade, a power crunch and covid lockdowns could weigh on demand. the combination spells risk off. european stocks struggle for direction. across equities, the mliv blog on the bloomberg terminal is extremely helpful. congratulations for keeping us entertained in august. the talk about whether the bulls or bears are right when it comes to the key catalyst next week, starting on august 25. if you look at the consolidation in global equities across the world, it has had a huge impact. they argue from early june.

dani: bloomberg's bruce einhorn joins us with more.t a historic moment, tell us how historic is it. what is the significance of finally getting this legislation passed? bruce: it significant because it represents the first real action by congress to address climate change after years and years of really ignoring the issue, by and large. for the 40% reduction in climate emissions based on 2005 levels, that would be by 2030. in addition to all the provisions for climate in the bill, there is also spending for health care, for instance there's subsidies for people who get their health insurance through the affordable care act also known as obamacare. that will last for several more years. there will also be for the first time provisions to allow medicare to negotiate some drug prices, not a whole lot, but a start, which is something that has been on the to do list for democrats really for decades. dani: at the same time, bruce, we have liz cheney, the republican representative, losing in the gop primary, perhaps this was expected, but of

joining us now is bloomberg's bruce einhorn.the latest details about the delegation and china's response? >> this is the first delegation since the visit by nancy pelosi. nancy pelosi, the speaker of the house, the first speaker to go to taiwan in a quarter of a century. it was a big deal. this is senator ed markey from nasa choose its who is known as a climate hog. he does not have a high position in the senate. he is chairman of the subcommittee from the foreign relations committee in charge of the pacific. with all due respect to ed markey, he is not nancy pelosi. how will china react given that this is the first visit since she arrived? when she went there were days and days of military exercises. francine: we are expecting more military exercises. >> the chinese defense ministry announced today in the last hour that there are more exercises taking place. unlike last time they have not specified the exclusion zones, areas where the chinese military would be conducting the exercises. we do not have a lot of detail. it is impo

joining me now is bruce einhorn. there is no real escalation online, as far as i can see, or is this the calm before the storm before this delegation's arrival in taiwan? who are they, and how high up the pecking order are they? bruce: i think that is an important point. there are very few people as high in the pecking order than nancy pelosi, who is the speaker. that was the first trip by a speaker in a quarter of a century. this trip is led by ed markey, who is senior senator from massachusetts, along with several congresspeople. but the visits by congressmen, senators to taiwan are not unusual. there was a visit late last year by senator bob menendez, chairman of the former really -- foreign relations committee. up until nancy pelosi's visit, china's reaction has been to express displeasure, but they have not lifted things in the way that they did following the visit by the speaker of the house. we will see what happens this time. senator markey and the others in the delegation our meeting today with the taiwanese

einhorn twitter and elliott pins. what do you think will be the more powerful partnership? pin is the real deal. >> yeah? >> i mean, i just -- they underinvested. they had a huge amount of cash. a gigantic amount of cash. they can turn on the cash to do international. which they are very slight on, and it works well. then you have the monthly average users go up as international. you -- then you got it. i, by the way, feel and have said that einhorn will be forced to buy twitter. >> musk will. >> i'm sorry. musk will. the performance. it's a contract in delaware. most of the lawyers i speak to do not believe this. but the ones who have practiced in delaware and have made it their career, say it's open and shut. if she's going to say, the chancellor going to say, look. a contract is a contract. pay it or wees l we'll seed the capital. the chance of just saying, listen, we'll just take it from you. now, someone was saying that they'll put them in jail. completely wrong. they'll just take the money. and if he doesn't have the money. she'll say, look, your stock price is at, an

thank you very much indeed for getting us up to speed, bruce einhorn.'s get the bloomberg business flash. >> nvidia's fourth quarterly revenue missed its projections by more than one billion dollars, surprising investors and reinforcing claims the demand for electronic components is drying up. second-quarter revenue was about $6.7 billion down from its earlier projection. shares fell to their worst decline in nearly two months. apple has dramatically slowed its dealmaking amid a shaky economy and heightened government scrutiny. regulatory filings show the company spends just 33 million dollars for acquisitions in 2021 and $169 million in the first nine months of this year, compared with $1.5 billion in 2020. ceo tim cook said apple had acquired 100 companies in the last six years. boeing is said to be resuming deliveries of its dreamliner jets this week. the delivery comes almost two years after the result of manufacturing flaws. the first jets are set to go to american airlines after u.s. regulators gave a green light to resume orders. that is the bloo

we are joined by bruce einhorn. what do we know specifically about this deposition?s a case in new york state involving the new york state attorney general who is investigating financial doings of the trump organization. former president trump was asked the question of his name, but beyond that, he did not answer any other questions. he invoked the fifth amendment right to avoid self-incrimination. the question had to do with the various trump organization properties, such as his golf club in southern california, and the state north of new york city. the deposition lasted from around 9:30 in the morning until after 3:00, with a break for lunch. a lot of questions and we don't know exactly how many. in 2016, donald trump had said that people who pledge the fifth must be guilty. he no longer believes that is the case. francine: how does this relate to other investigations? bruce: there are a lot of investigations of the former president underway, most importantly the investigation that led to the fbi raid on his estate in florida a few days ago. this seems to be stacki

senate has passed a landmark tax, climate and health care bill, for more on this, let's talk to bruce einhornat do we know about what is in the bill? bruce: what is in the bill includes lump spending on climate, $374 billion in spending for renewables. there is money for tax credits for electric vehicles. altogether, it is a $437 billion bill. it also includes provisions that will allow medicare to negotiate with pharmaceutical companies for the first time on drug prices, something democrats have been trying to get four years. there is money set aside for deficit reduction. there is a 15% minimum corporate tax for some of the largest companies. there are a lot of things not in the bill which is important for democrats who a year ago had been hoping for a whole lot more from this signature bill from president biden, the build back better bill, things that were not in it back then include spending on housing and child care, education. on the other hand, it was only a few weeks ago that most people thought know bill was going to happen at all. the fact that they are getting something is going to

. >> let's bring in bruce einhorn.t was a further step forward in he wanted to unseal the warrant and what they found. we have a response from trump. good morning. >> that's right, manus. the attorney general doesn't have the ability to unseal the warrant or the receipt. this is the agents gave to the people at mar-a-lago when they finished the search. he had to ask a court, a judge to unseal it. the judge won't do that without permission from former president trump and his team just within the last hour or two, we have had a statement from former president trump on truth media, truth social, his social media site saying he would not oppose this. the former president also said in his statement i'm going a step further by encouraging the immediate release of those documents. i'm encouraging in all caps there. so it seems like we are going to get them. it is worth noting that the former president had these documents since the search. and has the ability to release it himself unlike merrick garland, he doesn't need anybod

david einhorn's green light completely dissolved its stake in intel intel stock is down about 2% today, and one of the only stocks right now, the tech stocks on the nasdaq 100 that hasn't jumped higher since the june bottom. code two slashed nvidia by 92% recall nvidia as well as qualcomm issued weaker forecasts going forward. not everybody is saying goodbye. viking global picked um over a million shares in micron. >> the june bottom is remarkable, what we've seen since then andrew, this has been one of the largest and sharpest semi corrections we've seen in over a decade these 13fs, they're backwards looking, but aulsz the question where do the semis go now? >> i want to see the 13fs next quarter. they may be different than what we're looking at right now we'll see. >>> meantime we should tell everybody that deutsche bank pressing pause they say the stocks range bound with a few positive catalysts ahead. at least in the near term. more market action after the break. don't go anywhere. so, for me and the hundreds of drivers in my fleet, staying connected, cutting downtime, and deliveri

and the company's guy high stock market valuation of one hundred million dollars at the time einhornf $9 million attributed to closing of the daily and transition to bio plastics. stuart: that is a weird story. see you again. former treasury secretary larry summers warning that forgiving student loans will make inflation worse. how does that work? how does that create inflation. >> i have a hard time recovering from that deli story. hysterical that you found -- it is very simple. what happens is mostly high income people, people who went to med school and have lots of student debt and vote reliably democratic and to reward their base president biden wants to forgive that debt. they are paying to the government one thousand dollars a month to repay their student loans and student loans are forgiven they have an extra thousand dollars a month they can spend on something else. the problem with inflation from the first place as you've been talking about is when you have lots of demand driving prices up. this is going to take a segment of the population that is already well off and give t

haslinda: bruce einhorn in hong kong, thank you. let's check your latest business flash headlines.backed socar has debuted on the korean stock exchange this morning. shares have been swinging while the broader kospi index retreated. the ceo says he is still aiming to lift revenue to 1,000,000,000,001 a year by 2025. he told bloomberg exclusively that the ipo is just a stepping stone. >> we believe that going public and using the ipo process, we will create greater value, rather than waiting passively for the market turnaround. we believe that ipo is just a stepping stone to reach our end goal. haslinda: warren buffett's berkshire hathaway approval from u.s. regulators to purchase 50% of the petroleum company. it first made a bet on the houston-based oil company three years ago. occidental's stock had its biggest gain in five months. david: and currency markets are the big ones to watch today, obviously with the strength in the u.s. dollar and the korean won, and the euro, we are flirting with parity. a little bit off highs as europe wakes up. sterling, litter quickly, a similar sca

haidi: bruce einhorn what the latest.t, trying to -- china extends military exercises near taiwan keeping pressure up following nancy pelosi's visit. we get the latest on that. this is bloomberg. ♪ haidi: beijing is signaling it will keep up the pressure on taiwan to following nancy pelosi's visit last week by extending military drills that were due to conclude on sunday. let's ring in stephen engle from hong kong. what is the latest? >> it has been about a week since nancy pelosi first arrived on taiwan. she has long since gone but reverberations are still being felt. we had four days of military exercises previously announced by the pla inducted in the six danger zones around the island. they were supposed to be concluded as of sunday. however, the pla has announced it is continuing with further exercises and that is what we saw yesterday. the pla flying some 66 sorties of aircraft on sunday including 22 that crossed the median line. between wednesday and sunday we had 21 aircraft crossing the median line during the fou