one time onstory of a call where he paraded an investor at softbank -- berated an investor at softbank about a company in china that is making good and steady progress. masa thought it could grow a lot faster and was telling the investor you have to figure out a way to make it grow even faster than it is now. other people on the call were cringing and felt that investor got the brunt of his ire. particularly people who go to pitch masa, if you lecture company, you can walk out feeling like you are walking on air. sometimes he tells young startup founders, you are the next jack ma. they leave feeling so good, especially if it is a company where they have been rejected many times before. >> what sets the vision fund apart from other venture capitalists is that when the vision fund and masa decides to be all in, they invest the time, and a push -- they pushed the founder or entrepreneur to be more aggressive. >> they give them the kind of money where they can expand much quicker than they would have been able to do otherwise. a company that might have been looking for $50 million or $60 m

paul: softbank is part of our next guest's coverage.c in advisors senior market strategist who joins us from hong kong. i do want to start with this news we had today to do with softbank and wework. does this change your -- the appeal of either of these companies, something in particular? i do need to ask you to disclose whether or not you have a position here. >> no, we don't have a position. the answer is no. it does not change our view. we have a short sell recommendation we have had since february. we think that softbank missed finance. wework rescue package. they don't have the money themselves so it is not surprising to have goldman sachs coming to the rescue. the point is that softbank is fully invested in the vision fund as a previous guest says. 90 investments, mostly investments are losing money. investmentethod of was to look for revenue growth. at to get themselves out of this mess, it will take a lot longer. the other thing about the vision fund is they have $40 billion of the vision fund which opera for -- preferred shareh

they made softbank one of the technical borrowers on this line of credit. so effectively, lenders will be taking the softbank credit risk way better than the wework credit risk. that is why people have been able to get comfortable with it. that is why goldman was willing to underwrite it. and that is why wework now has a sufficient amount of capital to play with. lisa: which is really interesting, because softbank is taking the risk on its books in a very real way, and that is significant, raising questions about how much the vision fund is being conflated with the overall business of softbank, which is varied and financial, and perhaps a little bit less speculative than its startups. i'm wondering, what do we know? there was a feature in "businessweek" talking about the culture within softbank. can you give us a sense of what that is like, how that is informing some of the decisions? >> first off, fabulous story. if you haven't read the story, you have to go to the nearest news stand and pick up that "businessweek." it is the cover story, we have fabulous

i mean only, but compared to softbank.ivision fund's commitment -- the vision fund's commitment was relatively small. they got wework, and then they got much smaller companies that have gone wrong. but because they unfolded around the same time, people are paying a lot of attention to them. for example, wag and brandless. two consumer companies, they really only invested in a few hundred million dollars in. but because they're high-profile, people are paying a lot of attention to those. in a lot of funds, when companies fail, they often fail pretty early on in the life of the fund, to where there's an interesting inflection point, where they also have a number of aren'tng companies that at the point in their lives were we can point to them and say these are spectacular companies, for example paying a retailer in south korea has a lot of promise and another one, also in asia, is very problem -- promising. but the promise hasn't delivered yet. the disasters have. it's just a bad time. carol: it is a bedtime. i feel like you

carol: softbank, we did talk about it so much.hat i love is that you guys go into the layers of softbank division fund. obviously the leader of it all, but also other players. joel: the visionary at softbank, especially at division fund, this outside force in silicon valley, $100 billion vc fund that can do a lot of work because it has so much money. one of the ways it can do that is go into we work and bankroll we work, a business model that may not have been for the long haul. carol: funny you talk about the business model. joel: let's flood the zone with money. go big or go home. sometimes that works. we -- they have had some wins. other times it doesn't. the other thing it reveals is the culture within softbank and specifically the vision fund, where there's a lot of tension. carol: it's a big story. another is businessweek turns 90. joel: we're really old. that's great. jason: you look great for 90. joel: the magazine has been around 90 years. we honor that with nsa on how -- an essay on how it covered the decade. there's a 1

softbank offered $300 million. they didn't do what they are supposed to with that money or couldn't get those unit economics to work. so they've laid off i'm told 80% of their workforce from the beginning of the year. softbank is selling its stake back to the company. of course, it's not the only one, right there's worries bubbling about some other vision fund portfolios you see you are talking about looking for more profitable companies or with paths to profitability. you see losses accelerating. the chinese start-up that has money from softbank, the korean e-commerce site. there's going to be another softbank ipo this week at a much lower evaluation than softbank invested >> when you hear vision fund 2 is full steam ahead, does that make you worry do you roll your eyes and say, do we need another vision fund >> it does make me worry and roll my eyes those are two different things i think vision fund 2 if you are an investor, a good question you should be asking is why. just -- i don't see it >> you don't see the

as both as you can get to a subsidiary of softbank. for now it is a runoff but softbank will put that much of their own money in for somebody else, you need to keep an eye out on how close other companies get to them. lisa: that brings me to natalie because we have been seeing amazon saying it was going to come to new york, then forget about it, but not really. we are seeing amazon coming to the city and other tech companies. natalie: it is a big change from one it said they were no longer come. now they have announced a 335,000 square foot facility in hudson yards which shows they are committed to growing in new york. even after everything that has happened. on top of that we had facebook , and google continue to expand in the city. facebook signed a lease for 1.5 million square feet. in hudson yards doubling its presence in new york city. lisa: can you put this in perspective? is this a tiny fraction of overall space in new york city or is it taking on a silicon valley ii feel? natalie: it is taking off. financial services industry t

lisa: softbank is listed as the main borrower.hey are putting their own money and name on the block here. how much of a liability is this for softbank in a broad sense? case ofk in isolated this coming into their purview? are they going to bring other portfolios in? sonali: we work is a one-off given how far it has fallen from its peak. as both as you can get to a subsidiary of softbank. for now it is a runoff but if softbank will put that much of their own money in for somebody else, you need to keep an eye out on how close other companies get to them. lisa: that brings me to natalie because we have been seeing amazon saying it was going to come to new york, then forget about it, but not really. we are seeing amazon coming to the city and other tech companies. natalie: it is a big change from a few months ago when amazon said it was no longer coming to long island city. now they have announced a 335,000 square foot facility in hudson yards which shows they are committed to growing in new york. even after everything that has happe

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jason: quite a cover, talking about softbank. what a year. joel: this is one of the biggest stories of the year and it started with wework and it evenovered early on, pre-ipo chatter when there was going to be an ipo. as the coverage developed and went on, there was another story we started to think about, which was softbank. one of the biggest investors and wework. carol: i do love the cover, seasons greeting from softbank. we did talk about it so much. what i love about the story, you guys go into the layers of softbank division fund. obviously, the leader of at all. -- obviously, the leader of it all. but there are other players. joel: massa the guy who is the visionary at softbank, especially at division fund, this outside force now in silicon valley, this $100 billion vc fund that can do a lot of things because it had so much money. one of the ways you can do that is going into something like w ework and bankroll wework, a business not ready for the long haul. carol: funny you talk about the business model. they were very aggressive. joe

a $1.5 softbank has had billion equity injection.n that is done, softbank's stake in wework will rise to about 80%. $1.75edit financing of billion, that will kind of shore up the company for the need for -- for the near future. taylor: does this give you any indication that softbank is looking to share the burden? muchan: it is not so sharing the burden, it is putting its name behind the company that it will be the major owner. by signing honesty borrower and oning wework -- by signing as the borrower and having wework as the co-borrower, it takes some of the risks. softbank stepping up behind them saying, we are here, we are the fallback. taylor: it is notable to me that it was goldman sachs coming through with a potential line of credit. a couple of months ago, it was also looking at a deal with jp morgan. any thoughts of why goldman versus jp morgan? bankan: the jp diamond-led is known to be close to adam neumann. neumann is out now. gillianbloomberg's tan, thank you. , founder andework former ceo adam neumann is looking to sell s

they made softbank one of the technical borrowers on this line of credit.s will be taking the thebank credit risk, not wework credit risk. that is why goldman was willing to underwrite it. wework now has a sufficient amount of capital to play with. softbank is taking the risk on its books in a real way, raising questions about how much the vision fund is being conflated with the overall business of softbank, which is varied and financial, less speculative than its startups. there was a feature in business week talking about the culture within softbank. a sense of what that is like, how that is informing some of the decisions? >> first off, fabulous story. you have to read it. it is the cover story, we have fabulous reporters on it. it really paints a picture of chaos, confusion, and recklessness. story,look at the wework a few weeks ago, adam neumann was marketing it as a grant tech play that would control the world. a few months later we are talking about a real estate company hoping to sell off their real estate arbitrage and making sure there is a feasib

pavel: when most people hear softbank they are talking about softbank group.moved on from managing the domestic operations to wireless and broadband services. but this business is still extremely important to his strategy of investing. it's a major cash stores for the company, and profits. domestically are what really funds his investments with leverage. so, a a lot of analysts see it as -- softbank has kind of hit in terms of wireless offering. their strategy is seen as positive, looking to expanded to other areas. there was a time where yahoo! japan was a dominant internet company in this country, but since then, companies like amazon and rocker 1-- and ra kuten have taken some business. shery ahn: you and i have been talking extensively about some of the investments made by son's vision fund. short. they have fallen are we going to see more scrutiny on his future deals? pavel: you can bet on it. we'll continue to look at his portfolio. look, the vision fund portfolio has over 80 companies. some of them will be great investment and great returns. some of the

what was softbank's purpose? what kind of ss were you in? masayoshi: so that was the beginning of the time of the personal computer got started. so, but there's hardwa, not enough software. so i aggregate all kinds of software from the small software houses. and i wholesale to the pc stores, so it's like a bank. software's bank. it's not the money bank. the software wholesaling, storing in my warehouse, so it's like a concept. ssdavid: it was very succeful, softbank's stock is going up. and then you decide at some point to start investing. one of the investments bou made is consideredy many people to be the most successful investment in the history of mankind. you invested roughly $20 million in alibaba. at the time it went public, it was worth roughly $90 billion. so $20 million to $90 billion is a return of about 4,500%. now, jack ma is a very distinguished individual, and now one of the most successful entrepreneurs in the. what is it that made you feel this was worth putting in $20 million? employees... maybe 35, 40 employees. but his ey

david: it was very successful, softbank's stock is gog up. and then you decide at some point to start investing. one of the investments you made is considered by many people to be the most successful investment in the history of mankind. you invested roughly$20 mi. at the time rt went public, it was roughly $90 billion. so $ million to $90 billion a retur. now, jack d is a very distinguisdividual, and now one of the most successful entrepreneurs in the world. what i it that made you feelthis was wn $20 million? masayoshi: he had no business plan and zero revenue. employees... maybe 35, 40 employees. but his eyes was very strong-- strong eyes, shining eyes. could tell from the way he talk, the way he look at, he has the charisma, he has a leadership. so his business model was wrong. it's the wan he talk, the way hering young chinese people following him. david: before yahoo! was so famous, you made an early investment in it which was spectacularly successful. how did you hear of yahoo!? masayoshi: yahoo! u.s. was still private-- 15 employees.

now we have spoken with softbank. softbank gave us a comment on this and basically said this.draising is progressing as expected, as investors assess potential commitments to the second business -- second vision fund. they are telling us that, you know, discussions are constructive and ongoing. i will say this. i want to be real clear here. i'm not saying the saudis won't do it because we don't know what type of terms they may give them. you know, for a price, everybody puts their money in. remember warren buffett gave money to goldman sachs during the financial crisis. remember what he told you? i made $15 million a minute or something. liz: per minute. >> just remember, they may tweak the terms here on return that, you know, that makes it so appealing to the saudis and the abu dhabis that they almost have to put money in. but as we know right now, both are playing hard to get. they haven't committed. we have that confirmed. and i think you could say it's a good chance they are not going to put money in it. one,e hit to the fact they are softbank. that's a real problem if the

so far, softbank has had a $1.5 billion equity injection. also starting a 3 billion-dollar tender of her. -- tender offer. when that is done, softbank's stake in wework will rise to about 80%. the credit financing of $1.75 billion, that will shore up the company for the near future. taylor: does this give you any indication that softbank is looking to share the burden? gillian: it is not so much sharing the burden, it is putting its name behind the company that it will be the major owner of. by signing on as the borrower and having wework as the co-borrower, it takes some of the risks that credit providers, banks, lenders might have some hesitant in terms of lending on its own. softbank stepping up behind them saying, we are here, we are the fallback. taylor: it is notable to me that it was goldman sachs coming through with a potential line of credit. a few months ago when we were looking at bailout options, it was also looking at a deal with jp morgan. any thoughts of why goldman versus jp morgan? jillian: that is a very good observation. a

sonali: what does life look like after softbank?is not like there is not a rush of capital flowing into silicon valley these days. how does that change things? do you think venture will become prized a little -- will be compromised a little moving forward? ben: you start off with the large mutual funds. rowe. t. they came in with a last round before the ipo, get access, and then buy more on the ipo. that is when things started to evolve. there's more money in silicon valley. greatare not any more companies, so therefore the prices go up. that said, the great companies are becoming even greater and bigger. when i was in the top public markets, they were names like ge and exxon. now they are big tech, and you've got two passed $1 trillion. if they are not profitable, they are against the model that every banker think you need to take this direct listing model. ben: i love the idea of a direct listing. it is obviously easiest when you have a lot of cash and have a brand people can understand. interesting and creative models to help com

softbank invested in 2017.valuation of $20 billion and that is when you start to get into the high ranks of other venture private companies. >> with softbank's investment wework expanded its footprint , throughout the world. >> it's the beginning of this partnership between adam neumann and masayoshi son, the head of softbank. they have this meeting that is told again and again in the lore of wework, where adam made this pitch and he said, that is great but let's make it bigger. >> wework is one of over 80 companies that softbank's vision fund has backed with $100 billion. >> there is lots of money out there in this unique period of transformation. let's make everything happen faster with more money. let's enable companies that have smart ideas to get even more ambitious, bigger, and faster. >> after getting these investments from softbank and license to spend quickly, that is just what wework did. opening more offices around the world, making investments in a variety of different companies, and even opening an

ismoffett being the guy who really the visionary at softbank.hocially the vision fund is now in silicon valley a hundred million dollar vc fund that can do a lot of things. one of the ways it can do that weworknto something like , and bankroll wework. that is a business model that not -- might not have been rife for the long haul. >> they were very aggressive. >> that is the strategy. let's flood the zone with money, go big or go home basically is the strategy. sometimes that works, to be fair. they have had some wins. the other thing this story reveals is the culture within specifically the vision fund, where there is a lot of tension. >> it is a big story. another big story is businessweek turns 90. >> we are old. >> you look great. [laughter] >> the magazine has now been around for 90 years. we honor that with an essay about how we have covered business through the decade peers sometimes we mark moments in ways that history is not able to look back on so kindly. there is a 1970 nine cover about the death of equities. for a couple years afterw

the key word here is softbank.ively a wework but softbank is on the hook. >> that is interesting about the structure of this loan, it is 1.5 7 billion dollars in credits. we have learned that goldman has reached out to other banks to see if they are interested in participating. what is making the facility more tenable is that softbank is actually the borrower, and wework is the co-borrower. this bit of a hairy name, but softbank is a -- its u.s. is selling ice cream business to a vote -- a joint venture with eai partners. it is valued at $4 billion. the deal aims to create a's -- a stronger challenger to unilever. how does the steelwork? they are selling their u.s. brand in order to take on unilever? >> the western european businesses in the joint venture inrs ago sort of formalized 2016. if you looked at the global ice cream market, they were number two and number three. u.s. business and there will give them a shy to percent over to unilever. it gives them a chance to compete and bring out new products. compete.t

second, we could see softbank push more collaboration, even consolidation among vision fund portfolioes. he said the vision fund is an ecosystem where mutually beneficial relationships are fostered, greater drive to profitability. and he warned that there could be wework like problems surfacing in other portfolio companies. trouble could brew investments, particularly in china and india. >> get masa back on camera, talk about how he is going to do this >> i would love to talked last march, before a lot of this came anybody listening to that hour ongoing sit down we did would be able to identify he thinks about things differently than many other people in a long term way, has an approach that's unusual we'll see what the new year brings obviously people come back to the great investment all you need is one alibaba. >> he poured so much money into so many different companies. i hear from a lot of folks on the west coast about the softbank effect, how it changed the scale of investments and growth pattern of a lot of companies. if there's a real pull back, that would have huge impact. >>

softbank pulled out of wag.the r they valued jewel at $38 billion.ut of waat ther they valued jewel at $38 billion. softbank pulled out of wag.the r they valued jewel at $38 billion. softbank pulled out of wag >>> neil bloom men that will en parker is here you are here wearing your glasses. i said, are you wearing your glasses? you came out with contact lenses so this is like a big deal for you. >> it was great. our biggest sort of brand launch since we launched in 2010. our decision to launch contacts was thanks in part to this man and some of the research that we did through survey monkey. we were able to understand what our customers want and over 40% of our customers also wear contact lenses. >> i want to get back to the warby story. i want to talk about private market valuation and what's going on in your space because there's been such development of is this a consumer -- direct to consumer product that seems to be working we were talking about the peloton ad you think this is working for peloton? >> a lot of press helps raise awareness can hel

supersmart, came here to the , movedttended berkeley back to japan, started softbank. one of the things that stood out about his background for me was in 2000, he invested $20 million in alibaba and that stake is now worth $130 billion. he's a smart guy. taylor: what do we know about his management style and how it has fueled the environment for these outside bets? reporter: he says go big or go home. he just wants his portfolio companies and investment professionals to just keep thinking bigger, bigger, bigger. sometimes that is great like when a young entrepreneur comes to him and he tells them you're going to be the next jack ma, your company will be even bigger than you think, have you thought of this business idea or that one? sometimes, he gets impatient. we have this detail in a story about how during a conference call, he was talking to one of his investment professionals about a chinese company and was basically saying, why are your outlooks for this company so small? this company can be big. he was sort of berating this guy on the phone for not thinking big e

the keyword is softbank. it is effectively a wework loan. $1.75 billion letter reported, and we are that goldman has reached out to a there on wall street to see if they would be interested in participating. what is making the facility more is the is that softbank borrower and we work as the co-borrower. anybody who might think wework , they havename softbank as a guarantor. >> nestle is selling its ice to a jointess venture with private equity firm dai partners. it is valued at four brilliant dollars -- $4 billion. the deal aims to create a stronger challenger to unilever. they are selling their u.s. brands to a joint venture that owns some european brands in order to take on unilever. >> correct. they sold western european businesses and a joint venture eight years ago. they formalized that in 2016. if you looked at the global ice cream market, they were number two and number three. putting the u.s. business will share andhy 10% it gives them a chance to compete and bring out new products in that market to compete with unilever. >> shares

the visionary at softbank, especially the vision fund. a 100 billion dollar vc fund that can do a lot of things because it has so much money. ways it can do that is to going to some thing like we work which is a business model that may not have been right for the long haul. >> they were very aggressive. >> go big or go home. some wins, other times it doesn't. and what this revealed was the fundre within the vision where there is a lot of tension. >> it's a big story. another big story is businessweek turns 90. kim of that magazine has been around for 90 years and we honor that to look at how businessweek has covered business through the decades. because of the equities. for a couple years afterward they looked really good. it's just an amazing accomplishment. i think it was interesting talking to some of the people who put that together. all boy back to 1929 right before the crash on we first started, but collectively, the people who worked on this essay can trace their lineage back to the people they worked with. >> one of the things tha

the banks are being approach price softbank for a new loan. that is your business flash.f: thank you very much. we still have a jampacked show ahead. saudi aramco shares advance ahead of the energy giants inclusion in a major international equity index. the world's most valuable company has gained 17% since its debut. that is the chart for you. the folks at jefferies initiated coverage of saudi aramco. recommendation is actually underperform with a price target of 30 to share. that implies a 20% decrease from the last price. analysts maintaining a consensus when you're target for the stock in the past three months with to 39.2.tween 30 we will break it down for you and plenty more, straight ahead. this is bloomberg. ♪ tracy: it is 11:30 p.m. in new york. you are looking at live pictures of midtown manhattan. we did have a relatively muted reaction to the trade headlines that came out on friday. that s&p 500 index actually closed up by just .01%. that tells you something about the confusion around the headlines. take a look at u.s. equity futures this morning, up almost on

for a long time softbank was focused on telecom.dy cash that could be used to pay back these loans. three years ago he set up this enormous venture capital fund, $100 billion and began shifting the focus to taking big bets on startups like huber, we work and , wework,es and -- uber and other names. they sold off part of the equity and telecom business to public shareholders to focus on these startup ventures. that has been a change in the risk profile of the business. work fiasco, it has changed the look at -- outlook for the banks. softbank lost $6 billion, the first loss in 14 years. that has shaken up the bankers and they are growing concerned. kathleen: there is straight in the relationship now -- strain in the relationship now? the bankers want to understand how softbank is going to manage the relationship wework in particular. they were thinking of an initial public offering. it was blocked and it had all sorts of governance problems. they pulled the ipo and softbank into -- ended up interrupting more money into the company an

the keyword is softbank. it is effectively a wework loan.the interesting thing about the structure of the loan. it is a $1.75 billion letter of credit, and we are reported that goldman has reached out to other banks on wall street to see if they would be interested in participating. what is making it more tenable is that softbank is the borrower wework is the co-borrower. anybody who might think wework is a hairy name, they have softbank as a guarantor. >> nestle is selling its ice cream business to a joint venture with private equity firm dai partners. it is valued at $4 billion. the deal aims to create a stronger challenger to unilever. take us through first off how the deal works, because they are selling u.s. brands to eight joint venture that already owns some european brands in order to take on unilever. >> correct. westernsold the european businesses in a joint venture 10 years ago and formalized that in 2016. if you looked at the global ice cream market, they were number two and number three. putting the u.s. business will give them

anthony: it is not just softbank.st $3 billion was not raised by softbank, it was from toyota to hyundai to booking, to microsoft, oppenheimer. we are very,t -- very blessed it the global best names one can imagine. emily: why continue to raise money rather than going to the public market? hoo ling: because of our ambitions for a super app which , involve a broader set of services for our customers. there needs to be additional innovation and investment. and those are the investments that are partners, they identify the opportunity and they want us to do and are encouraging us to go bigger, bolder and better so we can serve southeast asia more consistently. emily: tell me about your relationship with masa? he said you have unlimited capital. are noti assume you asking for unlimited capital? anthony: no. we are extremely close and we are very blessed to have a personal, mentor, friend and partner in this journey, but i will not right now need that capital or want that today because we have enough capital to invest in w

what is going on inside softbank? point, people are pretty familiar with the problems that softbank has had with wework in particular. the office sharing startup tried to go public and had this botched ipo where public investors ended up balking at the high valuations, but this story takes you inside softbank to explain the culture behind that and some of the other problems, some of the other strategic challenges the company has. it kind of lays out how song has encouraged this strategy of go big or go home. talking to start of founders and the partners inside the vision fund and really encouraging them to accelerate growth, to be more ambitious in their strategic plans. one anecdote or example is a chinese company that allows you to hail trucks the same way you would hail a car with, say, uber, and he's talking with one of the partners working on the deal and says we need to go much bigger on this. he encouraged him to be more ambitious in the financial projections for the company and therefore the valuation of the c

a big change here on softbank's board. tadashi yanai, founder of uniglo is resigning he's been described as having the stature to stand up to masa san when necessary about half of softbank's board are softbank execs, like marcelo claure and rajiv misra you have the head of the saudi investment fund, the biggest contributor to the vision fund also on that board guys, back to you. >> okay. josh, thank you. well, in march, just before the uber ipo and of course before the summer when wework started to sink and did not manage to get to the public markets, i did sat down with softbank's ceo and asked him about the team overall and management in fact, josh mentioned two of the his key people, marcelo claure and rajiv misra for some time, there's been talk that at the top, things don't always go as smoothly as they might. here's what masa had to say. >> no, no, they are good guys. they are good friends and good partners of course, once in a while, there's a difference in opinion. but me and them, between them or other management,

fund up, softbank's vision politicaldescribe rivalries and harassment issues.ork clinches new financing in the fundraising push led by goldman sachs. and deutsche bank coaches barclays executives. the german lender said to be catering to hedge fund clients from rival barclays. joining us is bloomberg's sonali basak and michelle davis. i feel like i have read so many amazing articles about softbank. walk me through what we have here. sonali: this is a truly amazing story by our colleagues. not just the things we've known about massi as she son -- about masayoshi son. one employee alleged that one of the executives, the employee was mormon, and the executive told him to go back to utah and get more wives. the executive denied doing that, while others say they don't know whether massive son -- where whether hen't know is going to be in rates are not. michelle: they described him as someone that is really unpredictable. he says i believe in your fund that we believed in neumann, people will fire on all cylinders. this one way that they described his strategy, as ju

softbank has hit a roadblock in its attempt to kill to rescue we were.porting softbank was in top for $3 billion with japanese lenders. those discussions have stalled because the banks hit internal lending limits. they also expressed concerns about the risks in rescuing we work. no comment from softbank or banks. bank of america is watching the loan market for signs of stress. brian moynihan is telling us there is too much language in -- leverage in chinese companies, and it will impact the economy. it comes at a time direct lenders are doing many big deals traditionally handled by the big banks. >> you're working with these firms as partners, and on a given deal, they may do the financing we have done, but typically they do a different trench. and we are more focused on the short-term evolver's. that your bloomberg business flash. anna? anna: leigh-ann gerrans in london. was talk about globalization and whether the phenomenon is over. it's a total of a new book by jeremy green. in a year dominated by the trade war, brexit, and a climate theis, it has ri

put softbank on the map, particularly softbank.ank has a gazillion dollars. >> they did. based on alibaba investment. then they created this fund, this vehicle to essentially fund tech startups. they got a little trouble. it was called wework. they sunk a lot of money. thought the valuation was 45 billion. turns out with all the management problems, down to 10 billion. they had to bail it out, because it was probably going to zero if they didn't. they were doing that, essentially starting another vision fund, a second round. they went to their two largest investors, saudi arabian wealth fund, pif, and the sovereign wealth fund of abu dhabi. i will never say the name right. i think it is called -- mudabla. i'm pretty sure i screwed that up. in i any event they are balking at investment. they were biggest investors in the first vision fund. they're basically telling, basically telling softbank, we don't know if we want to go there with this because of what happened with wework. this is a big thing. neil: napoleon, remember your water

does this cause damage to softbank's reputation?work has been a black eye for softbank and masha you son. he -- masayoshi said he made a mistake and has learned and is trying to do better. , they have about 80% of the equity at the company and one of their lieutenants in charge of the business. what they need to show and what the banks want to see as they extend credit to wework and softbank, they want to see signs of progress at wework that they can turn around the business. can they fill up the offices they least, get clients in there, make some money and at some point had towards an ipo -- head towards an ipo? david: good stuff, peter. the markets, of sterling under pressure, thailand opening up, a rate decision out of bangkok, plenty more ahead. this is bloomberg. ♪ >> it is almost 11:00 e are in singapore. i'm juliette saly. the last hour of the morning session right here. this is a look at our top stories. china will buy me -- more u.s. goods. incoming shipments are being moved from hong kong to mainland ports. >> while way br

investments with the first $100 billion softbank vision fund. of course wework was one of those. maybe one of the more notable, more recent events what has happened is there's been a recent loss with vision fund, 2 a $9 billion loss somethinged with the first vision funding softbank's last earnings we're focused on the second vision fund. this is one of the first companies that the vision fund is looking at. it's a health care ageing care, home health care company fairly conservative company in the sense of what we think about what home health care is today this company handles a lot of the technological asects of home health care and back end technology with existing home health care companies. so not exactly a high flyer and that's the theme we have to see what we've heard from sexual intercourse the second vision fund, soft bank ceo and founder will take a more conservative approach, slow the pace of investments a little bit and take a look at companies that have a clear path to profitability. obviously, wework and uber and several other firs

it is keeping softbank in the game, part of a restructured doingt plan, $1.1 billion away.he $5 billion plan will come into place, and apparently this loan structured from goldman should be in place by the end of the year. guy: bonds continued to tell a story that the market is not completely convinced by what is happening here. this is what is happening in europe right now. stocks a little softer, but we had a big pot friday posey payrolls. pop friday post payrolls. you've got a slight bid in the bond market. we are going to get more german data out this week. nevertheless, a small bed with -30 on a german ten-year. the u.k. clearly focused this week with one of the guest risk events. boris johnson returning to his key election message that only he can deliver brexit. the conservative party is on course to win a majority in thursday's election. the markets a little jittery on this. kapteyn, ubs global head of akamai can strategy research, joins us now. the skew inpushing exactly the opposite direction. the market appears to want to conservative victory. market isn't dissip

this comes as softbank faces scrutiny over investments into wework and uber.now, guys wag has been under fire recently it's also had some celebrity firepower until recently as well olivia munn has been an investor and participant in the company the bigger focus here is the scrutiny on softbank and what it has chosen to invest in and why. >> they put $300 million into this dog-walking company also not a software company. >> that's literally couch cushion change for them. you know that, right we're all aware of this. >> we'll see what the after the bell brings. dave & buster's and gamestop continue to post let's get to the judge in a special edition of "the half." >>> carl, thanks i'm scott wapner at one market in san francisco as the "halftime report" continues its look at tech investing in the year ahead another great lineup today starting with two guys who used to be at the top of twitter. former ceo dick costello and adam bain. they now have an investment fund together focusing on private software companies they join us today in a cnbc exclusive. it's great

joined softbank in april 2017 and will be replaced by the senior managing partner at softbank.re the top global tech stories we are watching. taylor: thanks, paul. networking giant cisco has started supplying switch chips major data operators. it's already being used by the likes of microsoft and facebook. theo claims that ship -- chip is the fastest in the industry and is offering it to all customers, whether or not they use its machines. joining us to discuss it is ian king, who covers the chip sector. is this a new avenue for business for cisco? ian: it is a big move. they are basically adjusting to the way the world of networking and semiconductors have moved. once upon a time, if you wanted to build a computer network, the best, the fastest, it was difficult until you went and bought a box from cisco. then along came amazon aws, facebook, google. these companies developed their own skill set, and they sent we don't need -- said we don't need these expensive boxes. we can do it ourselves. cisco is saying their components are fantastic, you can use them, go ahead. shery: wha

the fintech platform is one of several ping an business is by softbank.sing $500 it is targeting around $260 million, and seeking a new york listing despite u.s.-china trade tensions. a sprint executive says the wireless company won't survive long without a takeover by t-mobile. the testimony was in a federal trial that will determine whether the merger can indeed proceed. federal regulators approved the deal but several states sued on antitrust concerns. that is your bloomberg business flash. -- leigh-ann gerrans with your business flash. saudi aramco jumped for a second day, pushing the oil giant's value beyond the $2 trillion mark that was part of the alienation global investors felt, part of what prompted the kingdom to enbd of focusing on a domestic listing with such an incredibly small flow. ofhabook is part of bjc, one the largest brokers in the world. great to have you with us, martin. i wonder what you think about this. i find it so fascinating that now the biggest company in the whole world has one of the smallest free floats in the whole world.

softbank's telecom arm upping their bid to buy out the public shareholders. and a half percent bump. softbank founder hopes to create a japanese tech champion to compete with rivals such as .oogle, amazon, and tencent it is time for smart shards with abigail do -- smart charts with abigail doolittle. you are looking at macro fundamentals. abigail: today, we are looking at a charted picture of the fundamentals beneath the charts. idm is michael sheldon of financial. -- of ourdm financial. here, you have the corporate profit outlook over the last decade clearly, it is going the right way. michael: i thought this was an interesting chart to bring along. it shows the corporate profits going back to 2010. corporate profits have tend to trend higher over the past decade or so. there are a couple things that tond out if you go to 2011 2012. there was a bit of a consolidation word look like earnings were plateauing. in a 2006 -- in 2015 to 2017, earnings plateaued. that leads us today where in 2019, profits have either tried water or have been down slightly . looking

challenges softbank faces in the new year. >> reporter: this past year was a wild ride for softbank andm masa son and his team in 2020 first, it could take longer to raise vision fund 2. after flops like uber and wework, they may struggle to get outside investors. softbank could also up its own investment in the fund or face a fund that is smaller than the targeted $108 billion. second, we could see softbank push more collaboration and even consolidation among vision fund portfolio companies. masa son has said relationships are fostered third, the vision fund headaches aren't over yet. masa son has warned there could be wework like problems surfacing in other portfolio companies. next year trouble could brew in investments, particularly in china and india. >> masa son, big story of the year does he make it next year. what do you think? >> it's either all going to work out -- >> what do you mean by make it does he survive as the head of his own company? >> no, no, no, does he raise a second fund -- >> how do you raise a second fund when your first fund -- >> the question is, is -- >> if

sridhar: again, this is all part of softbank's giant bailout package.oniled this $9.5 package after the ipo was abandoned to make sure they don't have to lose any money. they are throwing good money after bad. a $5 billion financing. ack stock soto buy b the company. it is accelerating a number of its payments. one part of the financing has been done. they still have to come back in january or early 2020 to obtain other financing. one step at a time. they are taking baby steps. this is not the grant tech play from earlier in the year, but a viable real estate company option that some investors would find interesting. shery: what happens to their business now because we have seen them starting to sell their assets? sridhar: they have obviously got out and sold non-core assets. we don't want to focus on everything that was the brainchild of the imagination. go big, go grand. let's forget about it. let's focus on the core business which is bring in some rent and make sure we are paying less to host people in those facilities. that real estate arbitrage is

exit package terms were sent to shareholders ahead of a offer by softbank. opinion has been looking at the top themes of technology for 2019, from unchecked data collection to apple shifting to a services-based business model. shira ovide broke it down into a different charts looking at the us nowar, and joining with her, john freeman. one of my favorite charts was the continued frustration between tech management and employees. what have you noticed about increasing tensions between the big tech management and employees? shira: this is not a new issue, but it's become louder in the last year, particularly at some of the large companies like facebook, google, microsoft, who have an outsized impact on the world. you see more agitation internally from employees who are both concerned about internal issues like pay equity or sexual harassment policies, and external issues in terms of how their products are used in the world, whether it is environmental destruction, concerns about working with government agencies, harmful effects of products like social media. t