betty: leon cooperman, we have much more ahead on "daybreak asia." bloomberg. ♪ haidi: we are counting down to asia's first major market open. japan, quite a look of strength at the tokyo open. nikkei 225 futures up 100 points. there is some weakness when it comes to the yen, the worst performer against the greenback. looking at loans we have not seen since the start of september. this is "daybreak asia." i am haidi lun, coming to you from sydney. betty: i am betty liu here in new york. let's take a closer look at what happened with this risk on for a second straight session. a lot of focus on apple and its shares. su keenan has more on the continuing rise in the market. su: a lot of the riskier assets were in demand. it was a strong close, off the low of the day. we go into the big movers. they were up by a significant amount. let's look at gap, big move, big story. 30%old navy unit is about of the company value. some were saying, you should call it old navy. investors rushed in. resources, an independent gas and oil company, doubled. bank of americ

vonnie: that was our exquisite interview with bea billionaire leon cooperman.e moments away from the release of u.s. weekly inventories. futures are up another percent today as refineries continue to come online. checking stocks as well. it has been a little bit of a solemn day so far. no change for the dow. the s&p 500 has no change either. some stocks are doing well. centene is leading the pack, up 7%, followed by chesapeake. this is bloomberg. ♪ mark: live from bloomberg world headquarters in new york and london, i am mark barton. vonnie: i am vonnie quinn. this is "bloomberg markets." we are moments away from the release of weekly u.s. oil inventories. gamers calling this week's of nearly four point 4 million barrels as the hurricane could impact storage. you can follow the release of the numbers on bloomberg at tliv . let's look at julie hyman who has the numbers. julie: we are seeing a larger than estimated building crude inventories but a big drop in gasoline inventories interestingly. crude oil inventories up almost 5.9 million barrels more than est

the same is true of well-known investors like omega advisers leon cooperman and tiger management's julian robertson, who says stocks are in a bubble. >> the market as a whole is at a historic basis, i think that's due to the fact that interest rates are so low that there's no real competition for the money, other than art and real estate. and so i think that's why the valuations are so high. >> the stock market has full valuation. that doesn't mean it's overvalued, but rather priced to appreciate earnings of 5 to 6%. >> those two investors spoke today at the delivering alpha conference presented by cnbc in new york. also in attendance was treasury secretary steven mnuchin. as tyler mathisen tells us, it was his comments that tax reform is a top priority that helped giveto >> reporter: hi, sue. delivering alpha is the foremost conclave of people in the institutional investing, hedge fund, and private equity worlds. we began today hearing from treasury secretary steven mnuchin, who is frankly optimistic about the probability of getting something done on tax reform before the end of the year

leon cooperman of omega advisers was more optimistic saying the stock market is fair, it's in line witharnings growth, and he said that we're returning to normalcy and that bonds are in a bubble but stocks are not. >> it was a little bit like somebody had a foot on the throat of the economy, that foot has been taken off the throat of the economy. people are more optimistic about business outlook i think i constructive you have to be careful we don't become too xexuberant in our valuation of the future. >> he gave some picks, first data, hess, wpx energy >> he did say he's thinking there could be a 5% to 8% pullback at any point. >> he did say earlier in the year he expected equity evaluations to be flat for about six months he talked about different risks to the geopolitical risk was a big topic of conversation we saw however as we heard about geopolitical risks and tax reform, marry callahan said ceo confidence is actually far more correlated to market swings. she said alpha is back it's possible to generate outperformance but investors need to pay managers to get it >> there's great v

that is will leon cooperman sees on the horizon.e ceoes and technology, ibm's shows her insight at cornell tech. we'll bring you that conversation in moments. we want to get the u.s. markets, which was in about to -- two

the only person who came even close to that sentiment was leon cooperman who basically said, you know, i think there's things in the equity market that are fair valued. he did say in the bond markets that looks to be a bit more of a bubble in the equity markets things look to be fair to him those reflect statements he made earlier where he said equity markets could go sideways but not down others talked about risk in the equity market. geopolitical was a key focus >> it was great to hear these titans not just talk about general market levels, but give us some specific key stock picks, buys or sells what were a couple stand-outs. >> very true some of the ones that move the market as seema mentioned, terex, it looks like there are some specific recommendations for the company. perhaps we could see him take more of an activist role in that stock. another one we saw move quite a bit on the discussion is when jim chenos said he was shorting a huge basket of producers >> lots more coverage today and highlights from delivering alpha yesterday to come. >>> still ahead a round up of global mar

jim's thesis it is actually in direct opposite to leon cooperman who i had a chance to speak to off set yesterday about a lot of names i had bought rrc i thought they did an excellent job doing in contrast to what jim was doing in contrast with continental resources. i thought they did a better job of proving their cash flow up over 100% last year. they have done a little bit of a better job and you have to look at where interest rates are going to go here, right? all of the shale production boom really came nfrm and if you think rates are going to spiral out of control, yes, jim is going to be right on this up i'm not necessarily sold on it. >> why are rates a better place to look than the price of crude oil? >> who knows the -- for instance, who knows where the price of i'll is going to go now, look at the price of oil today, okay. the price of oil today if you look at it technically, looks like it will break above 50 pucks, i have no clue but it looks like it's headed in that direction. >> no. >> because the debt level, right, is the risk, so if you're carrying that much significant

another big interview later today, leon cooperman will be joining us at 7:00 p.m. ♪ ♪ >> mark: i now for first word news. the trump administration has to end daca, the program for the for it at -- this action. the white house legislative director says principles for the tax overhaul will be announced in days, not weeks. priorities for daca are set to be within the next couple of weeks. president trump have a six-month deadline for -- to address the issue. to china int look november as the square and the poor -- korean peninsula due to pyongyang's nuclear and missile tests, according to a person familiar with the president plans. the chinese president xi jinping invited president trump to a state visit to china when the two leaders met for the first time. president trump has repeatedly called on china to stop north korea -- and seven july it could quote, easily end the crisis. in paris today, protesters took to the street to protest emmanuel macron's proposed changes to france's labor law. he says this will make it easier to hire and fire workers. demonstrators clai

. >> reporter: leon cooperman of omega says united airlines is a $100 stock and it will take 18 months to get there, that's a 63% upside to where the stock closed today >> united, i think it's fair to say, has been somewhat undermanaged until 18 months ago. in the past year or so, a couple of activists have been involved. the current management now is considered to be amongst the best in the sector the management has identified a lot of revenue and cost opportunities which should grow operating profits by 2020, the next two years, by almost 50%. >> reporter: nick mcguire presented his best idea, terex, a company he says has the opportunity to triple in three to four years, melissa >> all right, thank you so much, leslie picker. of course we'll be speaking to marcato's nick mcguire, he'll join us in a few moments on that best idea. other ideas from the conference today, there are so many to go through that leslie sort of ran through, what do you want to start with >> what julian robertson was saying, we talk about is tech in a bubble, is it overpriced we're still at 21 times earnings ju

that is will leon cooperman sees on the horizon. keeping up with disruptive ceoes and technology, ibm's shows her insight at cornell tech. we'll bring you that conversation in moments. we want to get the u.s. markets, which was in about to -- two hour's time. very small movement. the major averages close at record closes yesterday. today, not so much. the dow is on pace for another record close. the s&p 500 earlier today could just put in an all-time high. these are very small moves. however, any green on the screen will mean new record closing highs. with the tiny moves, he probably won't be surprised to know today is the second smallest trading range of the year about five points after yesterday's very matching red below a day back in may. not a lot of conviction on the part of investors as to what is next. all the different factors from geopolitical tension to apple, little breather today. let us look at the big movers for the s&p 500. at the fact we see plunging 11%. senators are demanding a probe of the hat. plus, sale of the s

leon cooperman is the latest.e weighed in on the valuation debate. >> i think the market is adequately valued, not overvalued. at% correction could happen any time, including tomorrow. i would say we are getting closer to one in my opinion. bob, great to see you. do you agree? >> i do. the path of least resistance is up. we do need earnings to make that happen. we need a reason to move higher. so far, so good. about unitou worried labor costs, profit margins? >> we have had good revenue growth, which has delivered good earnings growth. we have not had a lot of cost pressures. if they move up, that will challenge profit margins and challenge the market. we know how contained wage rates have been. there is a big concern about a reach for yield. 100 year austrian debt, would you think when you see those kinds of numbers? that weows our mind have a 100 year deal at 2% come absolutely amazing. in my view, interest rates and everything else don't hang together. something will have to give, and i think it will be interes

. >>> omega advisors leon cooperman is discussing his favorite stocks. >> what we have right now are picks that leon put out there for the investing public at delivering alpha. first is first data corporation. these picks were previously disclosed by cooperman's omega advisors in filings from the past season. he liked first data. likes it as a global company able leadership. no maturing debt also shire plc also they have a strong balance sheet position united airlines, another top pick under managed until 18 months ago. activists are involved currently managed among the best in the sector. we think this is a 100 stock of united he liked two oil plays one of the smaller, hess wpx energy the assumption, energy is overly discounted we think oil prices will be higher in a year price of oil closer to 60 bucks per barrel also a couple of pieces of commentary in the overall market he thinks we're in the process of returning to stock market normalization and it's not stocks that are in a bubble but bonds. he sees 7% to 8% return in the stock market overall if you factor in dividends, given h

chainos is back to present tomorrow delivering at alpha and other legendary investors include leon coopermans >> all right looking forward to hearing specifics. i would note, david, you'll agree, a theme of negativity and pessimism at last year's delivering alpha the markets for the most part performed well on that surprise election of trump and other positives. >> they have interesting to hear that jim and i, of course, have done that panel a number of years the best ideas i appreciate leslie going back and actually filling us in ow they actually did. delivered of eed some alpha. and jim i talked to, alibaba, incredible year since the year question that interview. >> and so -- a bet against that, which didn't -- >> there was chainos is one not his idea, but very negative. >>> much more in the way of ideas and themes from delivering alpha. complete coverage starting tomorrow. >>> back to our storm coverage atlanta sunder its first ever tropical storm alert diana olick what can you tell us >> about two hours from the brunt of the storm but now up to 922 canceled flights here in atlanta, and i

i'm reminded of -- mike took note of leon cooperman's comments where he said conditions that normallynificant market declines are either not present or not forecastable do you go along with that? >> i think we have in our minds that we have to have a bear market some time soon because that has been the experience over the last 20 years but if we go all the way back to 1900, we've really only had ten bear markets we have to have a significant recession, significant access of president in the economy and that's not what we see at this point in time. we would agree we're probably later cycle but not at the end of the cycle even if we get a recession, not the same kind of recession we got the last two times out. >> do you have a list of things that would spark a recession >> so, if we think about recession, we can either overcool into a recession and that's been kind of the mindset for the past few years we're growing so slowly, we'll stumble and fall into a recession. we don't think that will be the case it will probably be the other side, which is an overheating, right, which we've seen