we talk with the softbank c.o.o. comments on trade from larry summers, blunt reaction to jamie dimon's forecast for treasury yields, and the head of the chinese hedge fund says don't run from mainland equities. but up next, earnings, earnings, and more earnings, including results from some optimistic european banks. >> we can see growth also on the customer side and growth on the loan side. michael: this is bloomberg. ♪ ♪ michael: this is "bloomberg best." i am michael mckee. corporate earnings reports were again a major focus of investor attention this week. our roundup begins with a result from a global banking behemoth. >> hsbc is struggling to produce any significant revenue growth from its long-term bet on asian markets. costs increased 7%. even so, the finance director told bloomberg first and second quarter results were in line with their expectations. >> we saw good revenue growth the first two quarters of the year, and that is translating to a good reporting profit progress. we continue to invest in the grow

>> i think the best way to look at it is look at the track record of softbank.k record as an operator, i think we've done an outstanding job. of the japanese stock has probably been one of the best turnarounds in history of telecom. when you look at what we've done in sprint, bringing it where it is today, it has been remarkable. when you look at the track record and investors, the amount of money softbank has invested and generated is the best in the world. we decided, why don't we put more focus in replicating and putting our money to work in areas we haven't in the past, in then be able to invest in put more tension in investing, helping grow business? >> as an entrepreneur you've been linked to in the last 48 hours, elon musk, how real is he in terms of tesla? >> we never comment in terms of if we have commercial relations are not, that wouldn't be fair to anybody. one thing i can tell you is most entrepreneurs today want to do a big transaction or who are looking for financial help to expand their business, we will have conversations with them. >> so that k

emily: softbank has an enormous piggy bank and likes investing in tech.you take them off the table, who is left? >> there are others, of course. we haven't heard other funds connected to it at all, and bloomberg has spoken to 35 investment banks. none of them had an inkling of any kind of investment. it makes it highly unlikely there is someone lined up, frankly. >> what may happen next with tesla? >> the latest that happened is the board is going to meet with advisers next week to figure out what they should do next. whenever there is a leveraged buyout plan or an offer to buy a company, the board has to make sure the interests of shareholders are represented and in this case, they are in a precarious position because they have a very charismatic ceo who happens to really hate being the ceo of a public company. he doesn't like the scrutiny of the markets and that is why he wants to go private. they have to make sure whatever offer comes in, that being the board, is in the best interest of shareholders and $420 a share is not going to do it. there are a l

this is bloomberg. ♪ emily: softbank is eyeing a world of disruptors. of sprint spoke exclusively with bloomberg in kansas. he said artificial intelligence will be the next thing for softbank to invest in and also we talked about elon musk after it was reported that he had talked with tesla about investing in the company and potentially taking the company private. take a listen. >> every great company is always in evolution. it was a company that was evolving. it was a company that was traditionally at telecom -- at telco. it has always been a technology investor. but he would like to focus the company on technology, investing and transition to be more of an investing company than an operating company. this is why we are doing the deal with t-mobile in terms of sprint potentially becoming a 20% ownership that the group will hold. the thinking is, if we are so good at investing what put most of our attention in terms of investing capital into technology and disrupting the way that the world lives. that is where we are putting most of our attention today.

softbank certainly took this.er flipkart following a 2.5 billion dollar investment last year. profits helped by the sale of the chinese business run by arm, which is run by softbank and that was thought to a consortium over local finance investors as well as partners. the sales are the first signs of softbank making money off it investment after pumping billions of dollars into these technology copies around the world. its investments are now worth about $32.5 billion. softbank group shares are surging as much as 7% in tokyo. investors giving something of a thumbs up to the investment prowess. to such an extent that one of the big challenges for the firm going forward is who shall replace their current head. he has assured investors that he will set up a clear succession plan over the next gate. —— decade. all this week, we're looking at the entrepreneurs and businesses that have been transformed by instagram. today, we'll look at the way the social media app has transformed the billion—dollar global beauty indust

from a softbank perspective, every week is busy.ou have the world's largest technology fund committee you are always going to have a lot of activity going on. this week was just like any other week. has a chance to listen to massive earnings. it is a company like every company, it is a company that is evolving. it is a company that with softbankwas japan being one of the most interrupted telcos in the world. also it has always been a technology investors. he wants to focus the company on technology and transition into being more of an investing company. hear about the potential list of japanese telco, this is why we are doing the deal with t-mobile in terms of now, sprint potential becoming a twentysomething percent ownership that the group will hold. which is why we will look at what we do with other businesses that we have 100%. the thinking is if we do so good at investing, why don't we put the low -- of the attention in terms of potential investing and disrupting the way the world lives? that is what we are putting most of our a

this is on softbank.were for 447.5 billion with two estimates on that. 714e a considerable beat at . on the lossthe gain of a control over a number of europe, number of entities. ofking a gain on the sale arms china. that is one of the bolstering factors on these numbers for softbank. the bigger issue is that sprint and t-mobile getting together. those numbers from sprint last year, subscriber growth. ubs has started coverage on the ¥2500.ith a target of that explains the numbers. the dividend guidance is a little bit lower for the year. it is bolstered by the sale of arm china. ofa: let's do a bit shopping. in early july, they told us about a partnership between two businesses, entering into a long-term alliance. they have signed it. that is the news this morning. they entered into this long-term strategic alliance as previously described, the joint purchasing of products and goods not for resale. it will be a three have in your operational framework. it will be operational from october of this year. let

-- from softbank.ak with the ceo next. this is bloomberg. ♪ eats is rolling out a new policy with its fees. it will now be based on proximity to the restaurant. it was previously a flat charge. now fees will be cheaper for nearby restaurants. since its founding, insurance startup lemonade has grown dramatically by reaching out to a group of people who are not the usual customers for home renters insurance, and that is millennials. can they hold on? we are going to -- joined by dan schreiber, ceo. also, julie. dan, talk to us about the untapped market potential you see here. there is a lot of buzz around you, but the question is sustainability and how big this market can actually grow. dan: the market is absolutely vast. insurance runs into the trillions of dollars. it affects every household. insurance companies often last for 100, 200 years, which is pretty remarkable. we think this is an untapped and pretty much unlimited market opportunity. we are starting with younger consumers, but we do run up an

then you buy out whoever is left from money from softbank and maybe one or two other investors. emily: some other details. apparently, elon musk and son talked last year about the possibility of going private. obviously, they didn't come to an agreement then, so who knows what kind of agreement they may or may not have now. max, what our next steps on the tesla side? the chain of evidence is intriguing. tweeting, than the blog post, the email -- then the blog post, the email, the board. what does tesla need to prove here? max: it's a crazy story. when you look at the dell buyout, that thing played out over months. as ben said, there were committees, lawyers, bankers. all this seems to have happened, sort of like the best case scenario, in terms of them planning ahead, was a week. you after think there is so much to be figured out. all of this will be playing out in an environment where tesla is very polarizing. you still have these short-sellers, probably feeling quite a bit of pain now. there are still plenty of skeptics. you have this anonymous, right now, anyway -- this enorm

say softbank has moved on from tesla.have profitability problems and perhaps that is nothing that the ceo wants to get into right now. is also investment in the chinese ridesharing group as well as uber. right now for people familiar, they are not going to rekindle talks with elon musk and tesla. haidi: we are just seeing the fallout of the dollar strength with the dollar index. we are seeing indonesian repair drop to 0.6%. earlier we had the move when it comes to the rand. dollar-rand, i should say. see thecontinuing to fallout as we get this return to safe haven. let's get back to the tesla story. legalusk is in a bit of hot water because of that infamous tweet. >> that's right, that kicked off , couple of potential lawsuits perhaps on allegations of stock price manipulation. saying that they had the funding already secured. people say that is not the case. news just how outlining that suitors are still being lined up, some might say. but there are a lot of legal hurdles to overcome. the point i alluded to earlier was a

it makes sense for softbank to be doing this, but if i'm an investor in softbank, what is my holding? today is going to be different than in five years. how do i quantify my investment? marcelo: the best way to look at it is look at the track record of softbank. when you look at the track record, as an operator, we have done an outstanding job. of turning -- the turnaround the japanese business has been one of the best turnaround in history of telecom. when you look at what we've done in sprint, it has also been remarkable. when you look at the track records as an investor, the amount of money invested in the return it has generated is probably the best in the world. we decided, why don't we put and focus in replicating putting our money to work in areas we have done well in the past and invest in this entrepreneurs -- in these entrepreneurs. ed: in the last 48 hours, elon musk, how interest -- how much interest did you haven't has left? marcelo: we will never comment on have -- on whether we have had conversations or not. that would not be fair to anybody. most entrepreneurs today th

softbank vision fund is not shipping and. -- chipping in.ke with the ceo of softbank about taking tesla private. according to people close to the matter, those talks are said to have fizzled because of a conflict over control. plan where he a remained in control and softbank and its vision fund have taken many large stakes in a number of technology companies, but they also have taken control. softbank has previously invested nvidia, and gm, but this deal did not take place. there are no more talks. this news comes one day after the ceo elon musk announced he intends to take tesla products and has secured financing, although this has not revealed who the financing is coming from. there is concern about all the shares that would be taken off the market. if you go to our bloomberg chart in gtv, it is interesting to ears, thosember of b who have taken short positions, have had a tough go of it. the company is at the end of its rope in terms of questions about where funding is coming from. it is overspending. they seem to come up with yet another

we are told softbank is not interested.ast month -- last year about investment, but do not intend to revisit. haltpany in china may purchases to avoid potential tariffs. it would stop u.s. shipments. it's just chinese president xi jinping may be willing to -- to avoid backing down. china is currently the third largest buyer of u.s. lng. donald cap has taken to twitter to criticize a company. harley davidson moves production abroad. companies are coming in our direction, including harley competitors. a really bad move. moved overseas to beat the presidents trade tariffs. dayal news 24 hours a powered by journalists and analysts in more than 120 countries. this is bloomberg. yvonne: what we have been seeing here of course is the fallout from turkey. the lira off record lows. certainly the sentiment is hard to turn around. ramy: we will get to turkey. it is about sentiment right now. quite a bad start to equity markets following what was a risk off session on friday. have a look at the gap on the nikkei. similar losses we are

a $30 billion ipo would make softbank mobile the largest best thing ever.014 is the biggest so far. rakutan is a -- stock to watch. that far outweighs the $238 million seen. ceo's efforts to expand rakuten. faces rising domestic competition from amazon. global copper supply will win a five day reprieve after the world's biggest miner opted for government mediation in a bid to avoid a strike. buying a time to reach agreement. the main union was preparing to down -- the remediation problem can be extended for an additional five days of both sides request it. haidi: we are counting down to the market opens over in japan and south korea. it is rba decision day. this is how the futures session is shaping up. it does not look like we will get much of the shine we had on the wall street gains overnight. bit less when it comes to the kospi. sydney futures looking exactly flat. session those as we go into the open of trading here in sydney. the reserve bank of australia decision expected to see no change. a record rate of 1.5% lower. the lead, we will talk currencie

how does it fit into softbank's portfolio as well? softbank has a very diverse set of investments. vision fund now at $100 billion and soon to be much more. they have their fingers in everything. particularly in the world of e-commerce, they have been a little hesitant while they have a significant piece of most of the other big e-commerce plays around the world, notably alibaba. this is only the second e-commerce investment they have made in the u.s., the first one was in sports apparel, also a company that has been pretty quiet. this is pretty targeted play. i think it's reasonable to be skeptical of anybody who is going head-to-head against jeff bezos. for the time being, they seem fairly confident that it is scaled in terms of the kind of audience that they are targeting with. relatively upmarket stuff, whether it is organic peanut butter, or other kinds of gluten-free veggie chips or non-toxic dish soap. they are betting that it will be a more reliable draw for repeat customers than a bigger e-commerce platform that now, amazon is a good example of a company that in order to b

just what does softbank do, buys the g.m. version. -- what does softbank do, buys the g.m. version.why do you think they have built a stake of 5% and would be interested? this would suit their mandate to do a deal like this? peter: it would. the diversification is logic. huge investors in all search of energy -- all sorts of energy. is doingnow what tesla that anyone else is not seeing. they are going to be roadkill once the main car companies, which are now doing this, which jaguar has the x three, the bmw, they are going to flat in textile a. why would you buy a tesla if you could buy an electric bmw? really? anna: what dictates whether it should be a private company? the behavior of the ceo? peter: clearly. he comes to market and raises money on individuals and takes a profit. good luck, take it private. thes not just buying out company. he has to service it. i do not understand it at all. everything is about the new world and the new exciting and shiny things. are -- are we all losing our minds? anna: i am so glad we found time to talk to you about this this morning. manus: abso

japan's softbank group has reported 49% jump in profits after selling its stake in indian commerce giant sign of softbank making money off its investments after pumping millions of dollars into technology companies. its investments are worth $32.5 billion. saudi arabia has expeued $32.5 billion. saudi arabia has expelled the canadian ambassador and cut of all trade with the country over a diplomatic feud. a saudi foreign ministry statement said it considered a call for release of female activists a violation of saudi sovereignty. canada says it was seeking clarity on the issue. now, all this week, we are looking at the entrepreneurs and the businesses that have been transformed by instagram. today we look at the way the social media has transformed the billion—dollar global beauty industry which is expected to grow by more than $300 billion by 202a. traditional cosmetics brands aren't the only ones capitalising on this growing market. disrupters ones capitalising on this growing market. disru pters by ones capitalising on this growing market. disrupters by —— disrupters like kyliejenner

he never misses an opportunity, that is what makes softbank briefings so interesting. we heard a lot of similar stuff, is go to theme is what he calls the cluster of number one strategy, the idea of taking noncontrolling stakes in andanies like uber encouraging their founders to cooperate. he put us slightly finer point on that strategy, he acknowledged the fact that for love investors out there the portfolio does not make sense. does not jell together but he said there is a unifying theme and that is artificial intelligence. for a lot of investors, that sounds like five to 10 year horizon but if you start to get quarterly returns like the ones that delivered in the first quarter quite a few investors could live with that. rishaad: let's have another look at the ipo, going for the biggest one in 2016. it has confirmed plans to begin trading wednesday in hong kong. the portion was only one on one third. third are you this pales in comparison to some of the others we have seen. about eight toso 10 times oversubscribed and we can see that this summer the deals have not qu

yvonne: our bloomberg asia tech reporter on softbank.sive chat with the ceo of hong kong and shanghai [indiscernible] all the peninsula hotels across the board and [indiscernible] plans involved in the second half. how they stay competitive. this is bloomberg. ♪ ♪ asia.this is daybreak i am ramy inocencio in new york. yvonne: i am yvonne man. the hong kong and shanghai hotels revenue rising 10% in the first half while underlying profit increased 41%. the company is known as the owner and operator of the peninsula hotel, a luxury brand with roots here in asia. let's discuss this with the ceo who joins us exclusively here this morning. great to have you. these you mentioned uncertainties, the results were pleasing. how confident are you in the second half? >> things are looking good because the market is hong kong and even their ups and downs, but at the moment we are seeing a stable growth in our business. mainly chinese travelers coming back to hong kong and international markets are strong. what that has enabled us to do because of the

if you recall, their investment in uber also preceded softbank's.ank decides to invest in tesla, i'm sure a comparing the relative -- a compelling narrative will be fit in. not quite flying cars, but robot pizza makers. [laughter] million,750 accompanies him. they do delivery via robots and more far-reaching just ask on how to keep the fresh foods flowing without spoiling. son pig knowledged that so far his investments have puzzled investors. they range from dna sequencing's to vertical agriculture, to ride-hailing and insurance. he said there is an overarching theme and the theme is ai. he believes all of these companies at the core have machine learning or deep learning algorithms that will allow them to survive this next revolution in technology. that's really fits the profile. if you look at the bank portfolio, one motto is anything on four wheels that is not a car can be turned into an autonomous vehicle. these are all possibilities, but we have yet to see them become reality. haidi: thank you so much for that there in tokyo. he gives us a glim

breaking news from softbank.s ascent to lead a $3 billion round of funding .longside alibaba be heading said to the investor pile in this set of talks. this involves the vision fund plans to lend three to $5 billion to a food delivery giants which is owned by alibaba. this is according to people familiar with the matter. his son had built this $100 million fund to spread the wings of softbank. this is a much-needed capital e, which isr ele.m burning enormous amounts of cash. we are going to see some breaking news. a few lines here, let's get to intercontinental. revenues in line with estimates. $900 million for the first half revenue. that is in line with estimates. was to anhead of this extent they are going to run up against competition in china. others in china, big u.s. hilton,es, the likes of marriott, perhaps they are going to run into headwinds. that could be something that weighs on competitors. we are waiting to see what intercontinental says about its performance in china. we going to be speaking to the

the talks fell apart between softbank and tesla. you look at the potential to go private, your initial reaction, it looks like via twitter, was negative, because it was not clear exactly what was going on. you also expressed concern about missing out on the upside, even in a go private transaction. is that still a concern for you? galileo: no, this is why i am a huge fan of elon musk. he replied and said that private shareholders would have the option to hold, which is unusual. i was not expecting that. but when i heard that, it validates that elon musk wants to give back to the people who supported him since day one and will allow us to be in the company. scarlet: what do you think about the report, according to the financial times, that saudi arabia has taken a $2 billion stake in tesla, anywhere from 2%-5%, and that softbank has held talks with elon musk as well? maybe a possible investment there, what is your reaction? galileo: i think there is a fallacy that tesla cannot raise money, when i think the opposite is the case. they

softbank said no because they chose to put their money with the gm and it were.a is looking at tesla which strikes me as interesting because saudi arabia is invested in softbank fund. you can see where people are making bets and where they see the future. softbank would rather invest in lift. >> which tells you how much competition tesla is seeing. they were the main player. i think people are concerned about their ability to hit these targets. moread you see these mainstream automakers that know how to do this. some of these funds are saying the be that is the better place. elon musk didn't want saudi investment to begin with but now they may have to say let's talk about it. >> and funding secured. these talks are ongoing. he was not interested. he didn't want to issue new shares. they had to work with an investment bank to buy this stake they have. this ongoing question of does he have the money? there is a big controversy over why he is shopping for this. already had a first lawsuit filed friday. welcoming now one of the lawyers , welcome back to the program.

i feel like you were just here talking about the financing round from softbank.t got more dollars. what does this capital allow you to do? >> the capital was opportunistic financing for us. we were not out on the fund-raising trail. we received multiple inbounds. the fundraising allows us to excel a rate our growth. we are the fastest growing player in the u.s., fastest west of the mississippi, and we want to keep capitalizing on that. we announced new products last week, a subscription program as well as pickup. we are extending our drive program as well. we announced a partnership with about walmart in which we launched a pilot in one state. that pilate has now scaled to hasstores in over -- pilot now scaled to 300 stores in over 20 states. ofly: it's a lot responsibility. >> a lot of activity has been achieved even since march. we are ahead of all of the goals release.ed during the we are ahead on geographies. we are going to be in 1600 -- we announced we would and the year in 1600 cities. we are actually going to be in 2000, 400 ahead of our target. we are ad

so you need higher oil prices so softbank can have money? >> no.asically they made all these commitments to investors around the world as part of this strategy they never had the saudi aramco ipo which was supposed to be a cash infusion. now they can't send checks to everybody and they have a problem. >> it's an oil-based economy, it's going to be hard for them to divert. >> they need over 70 to balance their budget they will make sure it's at least $70 brent. >> jackie, you don't do 10-point ranges anymore she does 7-point she said 65 to 72. >> that's wti. >> yeah. >> for brent add $5. >> so 70 to 77 >> pretty much >> the sanctions will depend on the fact of whether the allies decide, look, we won't take the iranian oil anymore. you have people saying we'll ask for waivers. the government here saying maybe we have to grant some of these waivers. is the drop off going to be as significant as everybody thinks this time around will it be like last time? >> i think it will be bigger i talked to all the companies. i talked to the indian companies, cli

profit largely due to revenue earned through it's saudi backed $100 billion investment funds >> softbankre up by 4% and operating profits soared nearly 50% to $6.4 billion net profit increased to $2.8 billion soft bank ceo said while all fields of business were steadily growing, it was investments through the near $100 billion fund backed by saudi arabia that brought about the sharp increase the firm has been busy investing $30 billion in some during the past year including uber technologies co-working firm and chinese online medical service operator as of march this year it's investments in yield stood at 10% which is in comparison with other global leading funds repeatedly used the phrase beyond carrier in his speech after the announcement of his report stressing his aim was to shift softbank's main business into something more than telecommunications and would become the main engine in heading toward that goal they finished up 2% before the earnings were announced. >> thank you for that. berkshire hathaway posted a 67% surge easily beating forecasts they were boosted by results at sev

when you give money to softbank, you join a family. each other, and something he calls his number one cluster strategy, the idea of delivering more synergy by being inside a group. many people dismiss it as marketing, but something we found out over the past 12 years, he has continuously come back of the idea -- acta the idea of group synergy without real examples of success, but having $100 billion and the attention of the world's most influential entrepreneurs. i think we should take him at his word. rishaad: always a pleasure, pavel. as we head towards the japanese market and the lunch .reak, we have other earnings softbank on the way up. haidi: softbank rising. sapporo sliding for the most since may after they cut operating forecasts. isuzu gaining ground after study results -- steady results. it is marketing -- marking the end of its alliance with toyota. surging as much as 70% after the furniture retailer is in final talks to cede control to take ap. to tkp.- moving past the pain, overseas bets made by wireless, we have gaining g

this is the second i investment by softbank.t invested 4.4 billion in equity funding last august as wework adds more buildings and debt, there's plenty of optimism about the company they are on the verge of surpassing jpmorgan as the largest occupier of office space in new york. >> they put in $3 billion a yea and a half ago this is another investment >> they're growing fast. >> do you know people engaged in wework >> yeah. >> especially in new york. >> yeah. >> are they able to work i knows there the we they have party fridays. is there work? >> they have those joint areas where i'm sure there's a little friday happy hour -- >> joint areas with pot being legalized, that may be saying something. >>> to your big morning stories, dropbox shares dropping in the premarket. they're down big the company's ceo leaving the company. they beat earnings forecast. the market focusing on the guidance. >>> universal displays latest revenues topping revenues. they expect a pick up in orders in the second half of the year the stock is up 10.3%.

uber, take the softbank deal. money, $1 billion, sorry, $17 billion, when it took $1 billion from softbank. then existence shareholders sold something like $48 billion. so you have very big discrepancy. sort of putting an exact number on that is definitely more art than science at the moment. selina: at the top of your list was elon musk who we've been discussing extensively on this show. his personal stake in pace x is valid at $14.6 -- spacex is valued at $16.6 billion. is he likely to tap into that any time soon? >> absolutely not. he's part of the extreme example of this wealth all being on paper. he's kind of gone out there publicly and said, hey, spacex is not going to go public until we start flying regularly to mars. who knows when that will be. in terms of sort of to reinsure investors, he's not really going to be able to monetize any of that stake at all. so then he obviously looks at tesla. he's saying he won't reduce his stake at all. so he could be a $25 billion guy, but actually pretty cash poor. sel

talks with softbank, but talks went nowhere. to russia with love, new sanctions on russia, dragging the ruble to a record low as geopolitical risks rears its ugly head. inflation expectations rollover with the oil price, the latest read on deck. david: welcome to "bloomberg daybreak." the dog days of summer am a but governments keep us going. alix: we are in the dog days of summer. david: russian sanctions, saudi arabia fighting with canada, turkey. alix: i wonder if we are looking at such compressed liquidity. david: markets may be overreacting. everyone has gone to the beach. alix: we are here. stocks around record highs. even though we are not seeing a ton of news flow. it is a risk off currency market. the turkish lira hitting a record low, the dollar up 2%. the lira continues to slide. , the 30 yearts option later today, the 10 year solid despite the yield. crude flat, but yesterday was intense for crude. morning, weekly jobless claims, the ppi for july, wholesale inventories at 10:00. holds an ons evans the record media br

it is the second investment from softbank, which sank $4.4 billon into wework last year. be worth around $20 billion. but the privately—owned company is still losing money, despite revenue rising. japan's economy grew by more than expected in the three months from april tojune expected in the three months from april to june thanks to expected in the three months from april tojune thanks to a jump in household spending. growth came in at 0.5%. japan trying to resolve it straight different with the united states. katie soper is in singapore. this is a familiar tale. we are talking about china and japan at the whim of un trade sanctions and what it means for their economic health? that is right. these readings do they look quite good. we saw the economy bounce back after their first contraction in two years. half a percent up. this is 1.9% annual rate. that beat expectations. but yes, this comes as both sides, this big meeting occurring in washington between the trade ministers. they both want a deal but how are they going to get there? from the japanese perspective they wan

. ♪ >>> softbank out with earnings, boosted by a 49% jump in profit, thanks to walmart in a way, andn that massive investment fund josh lipton is in san francisco with more. >> jon, softbank is known as a telecom giant. but investment acumen is driving earnings the company said operating profit in the recent quarter surged nearly 50% to $6.4 billion that was boosted by gains in the $100 billion investigativision . the fund has invested $27 billion in 29 companies from arm to slack to nvidia he doubled down on singularity >> big strategy wise in summary i would say ai is everything and strategy to be prepared for that we established softbank vision fund in the past one year we have made investment into these companies. just a year ago there was nothing. >> as cnbc's alex sherman reported, there's now a team of some 200 people to target potential investments but the driving force behind the investments is that he meets in person with every founder of every investment, sometimes several times, including last minute trips to tokyo for founders who get the call. he wants to see you tomorr

he wanted to retain a great deal of control and that didn't sit well with softbank. now, the question is how many of a role would the saudis be willing to accept for elon musk? we're not privy to exactly what demands he is making. clearly this isn't a done deal and we have no reason to believe, based on the statement that will elon musk put out this morning, to expect that it's a done deal. clearly my sense is that a lot of those leadership questions have yet to be determined. and just the question is how much of an appetite do the saudis have for elon musk very much at the mel helm of the company? if you look at the charlotte at tesla, do they have a really strong number two who could snep and take his place? he does bring a lot of vision and a lot of the energy, the creative tension that has gotten tesla this far. do you have a tesla without elon musk at the helm? and the answer seems to be probably not, at least not the tesla that many tesla fans have come to know and love. >> the drama continues. tom, issue so much for joining us. tom giles with the latest on tel

it follows reports yesterday that they had talked to softbank last year.ks fell apart over control issues a piece in the "times" today, john couffey, well known securities law attorney. >> i think the s.e.c.'s going to run into a man who will be able to have a recall of conversations that he didn't write down that were secure i also want to put an end right now to things i heard all morning. the s.e.c. has officially told twitter that they are the equivalent of reuters when it comes to dissemination i don't want to hear again that you can't use them as dissemination. the s.e.c. actually favors twitter as dissemination >> the dissemination in thereg fd is different than saying something that may not be true >> you can't lie on twitter. >> you have secured funding, do you have equipment letters what do you got? highly confident letters did michael milkin write him a letter >> the s.e.c. is licriminal they could refer it to justice but we real lly got to get the story straight about how the prosecution works here i'm not saying he is going to get a free ride.

tesla motors had talks at some point with softbank. , the rent-a-car company missing estimates and just getting pummeled. this is a much bigger story of how the economy, u.s. consumers running away from rent-a-car's. a lot more car sharing going on at the whole industry getting hit hard. asll not out of the woods analysts are saying. match group soaring. this is a company that has a lot of dating websites including tender. tinder is the main weight many people meet. the company is just going to investors in terms of signing up new subscribers. let's go into the bloomberg. more on tesla. bears it burned. the stock was so heavily shorted that even when it rebounds a bit it is hurting some of those who are taking positions against it. has come outws that the board confirmed it new last week about the proposal to take electric carmaker private and it adds credence to the idea that it was more than a spur of the moment when -- spur of the moment women. -- whim. a lot more will be coming out on that. at this point we saw the stock is down in the regular session. it is ill a big question about

softbank is talking about selling a third of softbank mobile in its offering, or about $30 billion worth. alibaba made its debut in 2014 with a $25 billion ipo. that is the biggest public offering ever so far. and epf forould cryptocurrency help the price of bitcoin? management company is optimistic that its bid could be the first one approved by the sec. we will talk to the ceo about why, next. and if you like bloomberg news, check us out on the radio, listen on the bloomberg radio app, and on sirius xm. this is bloomberg. ♪ emily: bitcoin fell below $7,000 to its lowest level in three weeks. this, the back of last month's rally, which drove up the price by almost a third. that exuberance has been dampened by regulatory and other concerns. meantime, the competition to launch a regulated etf for continues, and one firm is optimistic its bid could be the first to be approved by the u.s. sec. in late july, and asset manager filed for an exchange traded fund that would stock not only bitcoin but 10 other cryptocurrencies. this is the first application of its kind. others have filed for bitc

but as i spoke to the ceo of a company called supercell which did well before it sold to softbank andn tencent, but he is still in charge of the company which is still very independent. do not mistake the fact that europeans don't speaking these grand terms for a lack of ambition. there is as much ambition but culturally, it is not the thing to express it in these grandiose statements. taylor: sticking with technology companies, china has two of the largest ones, tencent and alibaba, and they are investing a lot in smaller startups. at first glance, it seems like a good idea. jason: seems like it would be an amazing thing for a startup to get that kind of cash, but it is posing a problem in real risks. >> a reporter and couple of others in beijing and hong kong took a look at the various ipos filed by chinese companies, including the u.s., and found in dozens of cases, they were surprised to find that the companies had not just warned investors about conventional risks like near-term profitability, but in many cases, there are -- one or the two largest investors, alibaba and tencent,

a representative for softbank did not comment.acebook shares jump to the most that it is offering customer service the of the messenger chat application. that could boost user involvement. the social media giant has tried for years to make messenger a national communication destination. racism aboutspread the security of private data. that is the bloomberg business flash. francine: on the first round of puttingctions on iran, president rouhani under increasing political pressure. the sanctions are intended to stop the republic -- in a televised address, returning said they are open to talks with the u.s., but such dialogue would be pointless while his nation is being hit with sanctions. negotiations and sanctions at the same time is meaningless. if someone stands in front of his rival or enemy and pushes a knife against their arm and seeks talks, response is that he should put the knife in his pocket and come to the negotiating table and use logic. let's look at the impact on crude. we are getting late breaking , this is thehina f