caroline: softbank group international magic -- manager, shu nyatta.my colleague david westin up next with wall street week. i'm caroline hyde in new york. this is bloomberg. ♪ david: it was a dog that did not bark yet as natural gas prices threaten a collapse and a u.s. debt default reared their ugly heads and went back to sleep. this is bloomberg: wall street week, i am david westin. two treasury secretary's, larry summers on the economic outlook. >> that is accommodation that does not add up to anything other than taking a big risk on the infl

jonathan: can you imagine what softbank leadership is thinking?t you gave me $100 and i torched 50 dollars of it and then i said 'look at this $50 i made'!" jonathan: where is gensler -- tom: where is gensler?! david: this was a company that was publicly held. we work is still losing money soho knows what happens to about $50 -- so who knows what happens to that $50 down the line? jonathan: i am sitting in the cheap seats here. i have never seen anything like this where someone loses $17 billion from softbank. tom: there is always a silly season. the average account size of robinhood versus the other discount brokers, it is like -- it is ridiculous. jonathan: would you be celebrating? tom: it is foreign to what i know. jonathan: that was fun, wasn't it? can we give a shout out to twitter? what music was playing? if you go on twitter and find this video, it has a great song track. " where are your masks?" it was early 2019! isn't that sad now? the knee-jerk reaction is " where is your mask?" tom: " was that on the mx?" jonathan: wouldn't it be nice

softbank first invested and we work in 2017.about four point billion dollars at that point. later on, put in additional money and they posed up valuation of the company to $47 billion in 2019. that's when we were trying to go public and the whole thing imploded. investors got a look at the books. they saw how much the company was losing and how many conflict of interest there were internally. eventually, investment bankers decided they could not take the whole thing public. softbank turned around and did something unusual. they decided to bailout the company rather than letting it go under. they put in additional money, more than $5 billion at that point. some people would say they have put good money after bad, they've ended up with a very big stake in the company. now we work is going to go public at a valuation of $9 billion. haidi: how far have they come from those chaotic newman days? what does it mean now that we are in this work from home pandemic world? peter: yeah. it's a good question. certainly the business is on more

and the executive chair from softbank who has spearheaded this investment. it is a spectacular story, folks. and many a documentary has already been made about it and many documentary may be made about the future of this company. becky? >> andrew, just talking about, it seems like so long ago because we've all been through so much the last couple of years and there's so much build up around wework the first time around, this one snuck in there. >> it has snuck in there it snuck in there in terms of what the business is, in part because we all thought the pandemic would have wrecked a business like the had. but almost the opposite has happened large companies like microsoft and others have started to take subscriptions for their employees at wework so that in this new hybrid world instead of going to headquarters or a major office you might go to a day or morning to a wework. the company has slashed costs, pulling about $2 billion annually out of the company. and right now while i should say the company is still losing money it appears there's a path for prof

the idea is for softbank to benefit if there shares continue to go up.k is that shares could go down as well. >> this has happened in the past. i believe with over -- uber? >> yes. they made a practice of arming against their equity stakes. initially they did it with alibaba. they borrowed a billion dollars against that holding. they also borrowed against uber after that. there is create a financing for them to get at some cash without having to sell the shares. that would force them to pay taxes. that may also prevent them from benefiting from any upside. >> we will be watching softbank at the open. we will watch some other stocks on our radar. nissan's masayohshi -- masayoshi son meets his got apart. the nikkei newspaper -- his counterpart. this nikkei newspaper said this can be used as a treatment for covid 19. let's take a look at the latest business flash headlines. we saw profit dropped 31% in the third quarter. net income was also down 21% in the first nine months. mainly due to impairment provisions related to china. this activism investment has

softbank, the group is said to held talks competing for a stake.icials in the north saying it was a new submarine lunching a ballistic missile. on the corporate front, we have a process for cash cow pay. the company would list shares in november. samsung holding part two of its galaxy unpacked event later. haidi: let's get you some of the quick business flash headlines. google's online store debuted its new pixel six phone. customers were met what they sluggish website for about five hours. it's been upgraded with a better processor and camera trying to compete with apples dominated -- apples dominance. the company -- that game maker will expand its ethics and compliance team in august. hundreds of activision were protesting after the workplace was described as a frat boy culture. a bump of production and iron ore nearly 19 million tons in september, more than forecast. that result higher on the quarter. a dip in output from bhp. let's take a look at netflix years after hours -- this after what was a robust set of earnings on the back of the incred

softbank has put in $17 billion. a little unclear if they're going to make that back.won't know for a while. one take away is that even if they break even, people are going to think that it's a win. coming out flat on this will not be bad for softbank considering that we work has been close to death multiple times. >> adam walked away with billions of dollars. >> yes he is now worth $2.3 billion. that is not the $14 billion that initially it looked like he was going to wind up with. at one point, he described himself as the future trillion or. the $2.3 billion comes down from that, but it's pretty good considering that thousands of people lost their jobs in the last few years at wework. shery: it's time now for morning calls ahead of the asia trading day. bmo capital saying the fed decision to begin winding down asset purchases is a foregone conclusion. the expression will be most apparent in the belly of the curve. they are expecting the first rate hike in the end of 2022 or early 2023. paul: jp morgan warns the pent-up demand for bitcoin could ramp up costs along the

it shows how softbank takes a vantage of the ipo market. one more piece of breaking news.l is likely headed for another snap election after the budget is rejected yet again. portugal likely headed for a snap election. interesting as we are headed into the ecb tomorrow. on the yield side and the inflation side. we will get more reaction on today's bank of canada move that has accelerated the potential climbing of the future rate hikes. this is bloomberg. ♪ mark: the chairman of the u.s. joint chiefs says china is the greatest geopolitical threat to the united states. he's calling china's recent missile test significant and concerning. general milley spoke on the latest episode of the david rubenstein show. >> what you saw and i don't want to get too much into classifications of what we saw. what we saw was a very significant event, a test of a hypersonic weapon system. it is very concerning. i saw some of the newspapers they use the term sputnik moment. i don't know that it is a sputnik moment but it is close to it. mark: don't miss general mark milley on the david rubenste

what it means for major shareholder, softbank. this is bloomberg.ishaad: you are back with markets. one of the big gainers -- thermal coal. down 12.5% today. futures extending the decline. we have a authorities taking action to tackle the energy crisis. taking powerful measures against speculation but do not forget the other side of it, rampant demand because winter has arrived early in northern china. it has arrived early here in hong kong as well. david: 20 degrees celsius, i imagine the boots are out. boots on the ground. real estate and pertn the ground and on their way out. pretty much across the board. outperforming the benchmark. in fact, on the third ticker, we are closing in on reentering a bull market here in hong kong. we are about 2% away from that level. of about 18% from the bottom which was just a few weeks ago. rishaad: we are going to talk about a debacle which has now turned into a listing. wework went public two years after a failed effort. evaluation of 9.5 billion dollars which was a fraction of what it was valued at in 2019. pe

softbank has held discussions to invest in the chipmaker.oftbank offered hundreds of millions for its stake to value the four-year-old start up at more than a billion dollars. they have had similar talks with other potential investors, but don't currently need to raise funds. credit suisse agreed to pay more than 700 for the investigations into the role in the fundraising scandal in mozambique. it involves $2 billion of debt deals that were supposed to be funding maritime projects. u.s. prosecutors say the bank seized investors by hiding information about the use of proceeds from the debt offering. rishaad: checking in on markets. some of these tech companies having to really solidify these bonds taking place around this part of the world. taking a look at the likes of baidu. alibaba after what we saw. coming back 6.5% on the day. i want to look at cryptocurrencies. the first etf. futures etf on bitcoin. it has put a fire in crypto related stocks. we just heard from howard marks. what he has been saying is three or four years ago, he thought

shery: what does this mean for a softbank that poured a lot of money into that company?the question now that people are asking is can softbank recoup the $17 billion it has poured into wework? it is too soon to say but is possible. if wework is able to get a lot of the people that have gone to distributed offices, if it can continue to grow and is market cap increases dramatically, it is not inconceivable that softbank all make its money back which is saying something tense it looked close to death in the last several years. shery: adam neumann did not make as much as expected but he is weaving with a couple billion dollars. >> yes. he is walking away according to the bloomberg billionaires index with $2.3 billion. it is less than the $14 billion that it looked like he might make. at one point, he was describing himself as the world's future first trillionaire. considering the company really struggled in 2019 and then again during the pandemic, two point $3 billion is remarkable particularly for a figure like adam neumann who is considered to have led this very dramatic

it will help fund distributions to investors, including a sovereign wealth front from softbank group. fund deployed similar strategies in 2019. and government has blocked sida posh italy has tightened its grip over strategic companies under mario draghi's leadership. david: let's really take a step back because something is happening with these markets in terms of the risk aversion that is increasingly coming through. cyclical's are taking a beating today. you will find out in a couple of seconds why. industrials, materials, which should not have been the out performers, so there is the incentive to take these profits going into today where the benchmark is point. you're looking at on yields long and continuing throughout credit markets on china. let me give you an update of what is happening. we are looking at 16% down, so yet again, we were talking about this 15 minutes ago, just the latest in this event horizon -- i'm using a black hole analogy -- starting to engulf more and more of these weaker names. >> that risk in the credit space is persisting and we are seeing more and more o

sources say softbank offered hundreds of million dollars for a steak that was valued at more than $8 it is understood they've had discussions with other investors, but it doesn't need to raise funds. the world's second-largest iron or supplier has reported production numbers. the result, also higher on the quarter. the performance may help to counter a drop in performance. shery: we are minutes away from the open in australia. what are you watching? >> plenty of trading. keeping an up -- keeping an ion those stocks, boosting its forecasts and reducing cost estimates, while evolution reported more costs. over at flight center, that company did flag positive early signs in australia, but it didn't offer full-year guidance. over at super retail, higher transport costs, those remain a concern, but the group dde couch better margins. shery: while we are awaiting that open in australia, kiwi stocks, the only ones trading in the early asian session come up by about 2/10 of 1%. the aussie dollar, not doing much, but this after we saw a gain to that four-month high against the u.s. dollar. th

we kind of forget that softbank was involved.e we are march 2021 and have the wework debuting via a spac deal. sales commit at $593 million, profits still in the negative and they are not positive yet. the occupancy rate caught my eye, 60% is what we are looking at. we are dealing with a volatile pandemic work environment. two years ago the occupancy was 70%. for valuations, a completely different story. i $9 billion valuation -- eight $9 billion valuation back in 2015. you can see how much it has -- a $9 billion valuation back in 2015. you can see how much it has lost. the question is, how do they perform after they hit the spac and that momentum is not there as it was early this year. matt: thank you for joining us. the first of its kind, volvo has released the first fossil free steel vehicle. we will steep -- speak to the lead engineer. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was ea

the softbank founder is clashing with the ceo over the company's latin american funds.nts to spin off the $8 billion fund he oversees to build the business and boost compensation. however, in a statement, he denied discussions about what he called a strong relationship. swd, the insurance company hired by richard lee is said to be facing increased scrutiny by u.s. regulators, stalling its new york listing. they haven't been able to secure approval for its u.s. ipo with the sec asking about risks like chinese regulation. bloomberg is being told it's unlikely the ipo will be completed this year. shery: just minutes away from the australian open. let's turn to sophie. sophie: keeping an eye on bhp this morning. after posting a 4% drop in iron ore shipping. softer prices me indicate we could have a peek in the earnings cycle and when it comes to the deal front, bhp assuming the merger -- regulators say it started reviewing that deal in december. also keeping an eye on northern star. the production forecast has been maintained with output waited toward the second half of 202

it is a warm reception this time for wework, and for the ceo and softbank, who are now to credit fornsformation and a smooth onboarding into public markets, much different than the drama we saw a few years ago. at the end of the day, this is a company that is highly exposed to a comp look at it sector in real estate, at a time where people are exploring what the future of work should look like, and a lot of tough changes still to make ahead. alix: why now? we are at a confusing time in the market. we don't know about rates, about inflation, about the delta variant. sonali: any company going public, if you don't do it now and you wait into next year, you face a lot more headwinds in front of you. you could argue as well that it is more volatile then maybe a little earlier this year, but we have seen companies go public earlier this year with a lot more volatility baked into the markets. there is still a demand for companies that have growth on their side and have an upward trajectory and places to make money from, but this is a much smaller company, and therefore probably easier to in

the company also went broke but early investor softbank stepped in and bailed the company out.ork is back on wall street, ready to go public again. andrew ralph sorkin now, host of "squawk box. andrew, be american loves a comeback, but as wework fundamentally changed since the adam neumann era >> it's such a fascinating story because the company is what it was before under a different culture in many, many ways but a beneficiary of the pandemic, which is to say everybody thought no one would go back to the office but at the time we were talking about hybrid workplaces and the like, all of a sudden weworks are booming, big corpses across the country are saying we're going to get a subscription for our employees so if you don't want to go back to head kwauquarters every day, still have another place to go, a third place. so it's a very, very unique story in that it really is a comeback. >> it what about adam neumann himself, is he expected to get cash out of this >> he still owns about 11% of the company, and at the current valuation, he stands to make about a billion dollars, ma

softbank is giving them money at 40 billion what really changed other than liquidity? much and that's one example of probably a thousand do you worry that we've basically exported a bubble from the nasdaq into the private markets and what will be the fallout when that inevitably comes to an end? >> i mean, josh, thanks for the question and number one on valuations we started the program by me saying there is no doubt we are underestimating the distortion that low interest rates and this amount of liquidity in a post-covid world are having on multiples across the spectrum. everything is higher priced then it would have been if rates weren't at zero and we didn't have this amount of liquidity. both as a venture investor and a private market investor i'm just saying you have to have a balanced approach. you to leave open the possibility that we're going have a correction and manage the portfolio so that you can durably continue to invest through that cycle secondly, when it comes to an accredited investor's list and i agree with you gensler office cnbc this morning. the f

over in tokyo, retail and softbank, weighing on the nikkei as well as the topics. morning. switching on the board to focus on australian bonds, do from australia this weekend, we do have the aussie 10 year yield with a 3/10 curve. flattening early in the asia session, we are seeing treasury yield resume gains with march high pricing, two rate hikes, nearly two rate hikes, and yields back above 1.54 this morning. and don't be surprised if we see 1.8%, 2%. inflation shows no signal of abating just yet, given pulling up the chart on the terminal, commodities showing little signs of abating. you have the bloomberg gauge, stock prices rally in 5% lows, pandemic lows with oil, gas, and coal leading the advance. brent above $85 a barrel, could be set for a 10th weekly rise. i oil prices have been a boon for copper. haidi: speaking with energy, the top world exporter has pledged to reach net zero carbon emissions within 2060. it marks a sizable shift from saudi arabia, coming just days ahead of cop 26. the saudi energy minister told bloomberg that the kingdom won't have to

you have names like softbank waiting on the tokyo share market, but over in australia the asx bouncingding the game. we have materials under pressure in sydney along with health care names, check at kiwi stocks trading at a january high. the kiwi dollar losing ground, the only g10 laggard this morning. underperforming ahead of a policy decision. the rba standing pat while consensus is calling for a rate hike. oil under pressure as the opec-plus meeting ahead. shery: let's turn to the investigation by an international consortium of journalists that has dived into millions of documents showing how rich and politically connected individuals use offshore companies, taxes and hoard wealth. we are joined by a reporter who worked on that, the pandora papers. it's great to have you with us. we have seen some of those beneficiaries of secret accounts including jordan's king abdullah, tony blair, vladimir putin, anything standing out? reporter: this is a different leak from what we have seen before, because for example in the case of the panama papers, they investigated one offshore provider in

the company behind the technology already has powerful backers including bill gates and softbank, theon my going public, trading under the ticker symbol gw h. stuart: it has gone straight up 89%. this new survey revealing how many people are worried about cyber attacks? a very large number. ashley: you think it would be everybody. 90% of us have serious concerns about cyber attack on us computer system interview china and russia as major threats. large majority of adults over 60 say the russian and chinese governments are a huge threat but only half of those under the age of 30 agree. 79% of democrats, 70% of republicans also agree the russian government is a big threat. it does show the majority of americans are at least somewhat concerned about hacking that involves personal information, financial institutions, government agencies and certain utilities. cyber expert say the criminal syndicates that dominate the rensselaer business are mostly russian-speaking is also say the amount of active chinese cyber actors dwarfs the rest of the globe. it is a threat no doubt. stuart: it is a b

don't believe the valuation was created by adam newman, it was bankers and investors and folks at softbankling to do that all of a sudden you have the valuation and thenyou go out and higher new employees and say i'm going to pay you in stock. because it's based on this valuation. >> he always seemed kind of crazy with the things he was talking about. how he was going to run in israel for office and how he was going to turn this into a lifestyle and work they seem to live on a different planet it's what is he talking about when you listened to this? some people believed it but the market at some point said the emperor was wearing no clothes and that seems to be how it all fell apart around that he's not down at the new york stock exchange yesterday, the interesting thing, they don't want him there this was like travis calnick when youuber came out. >> i wonder how history books like at travis because we all use ubers now and depending on what happens with wework -- >> it's just so much there it's interesting. >> the drama. >> it is. >> the drama. >> it is >>> when we come back, as washingt