what is this going to mean for softbank?lects there are two pieces to this the vision fund and softbank itself. softbank controls vision fund it is not the only investor in it. softbank has bought out the vision fund stake, that has generated double the returns for it. but if you had put that money, the 30 billion on dollars they paid for arm back in 2016, if you had put that money into an index that tracks the semi -- philadelphia semiconductor index he would've had a better return. excluding dividends and things but the share price or price return looks to be just over 100% versus that if they get that valuation. going into that index you would have had about a 300% return. i think a lot of softbank investors out there right now are like let's just capitalize on this, let's just get some money out of this. they are only selling a minority stake at this stage. if it outperforms better down the line they have the opportunity to sell bigger stakes. if they don't, they can sit there for as long as they want. >> there is a lot

shery: the latest on softbank's arm ipo.h africa is set to discuss how to accelerate the shift away from the dollar. a preview with moody's analytics later in the hour. and next commit it bhp full-year profit tumbles 37% as metal demand from china weekends. details coming next. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. he snores like an angry rhino. you've never heard an angry rhino. constant contact. baby i hear one every night... every night. okay. i'll work on that. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add a base. 76% of 23andmeat health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. shery: we are early in the asian session.

we were looking at whether softbank was ready to really become the aggressive sort of goliath in thesector again. but the cfo said that they are not investing and that they were not doing their job, at the same time that they were very fearful, they had much fear in their hearts, as they proceed. just to give the tone of their investment. they have been burned so badly since the vision fund and the pandemic hit. and the tech crackdown in type -- china. they are still climbing up. the burned hand learns best. we will have to see how aggressive they are. >> one of the investments that was really bad was reworked, which has raised substantial doubt about ability to operate considering its earnings, what is behind this, and how does that feed into the future for softbank and the vision fund? does that have an impact for bankruptcy? >> that's basically epitomizing, becoming the poster child of the vision fund now. softbank put more than $140 billion into unprofitable startups that did not have the bandwidth to spend all that money. lifting valuations. and rework is one of those examples.

you can value softbank just like other companies over time.ook at the net profit and price earnings the point is there are profit figures you can use as an analyst. a.r.m. is an important part of the issue which we think it could have companies con consolidate with holdings. you have the big japan business which is doing really well we had great numbers from the old dead holdings the other day with significant improvement in the businesses all of those things together, along with a.r.m., became the majority stake and that means profits of softbank are more visible than people think. that will sustain the share price over time. >> richard, thank you for joining us richard kaye joining us from to tokyo. >>> let's look at u.s. futures wall street saw risk appetite return this morning, it looks like investors are traeading water in terms of the week ahead, the data print on thursday core u.s. inflation is expected to rise by 0.2% in july. the smallest back-to-back gain in two and a half years. on the annual basis, the forecast is shows cpi rising

softbank-owned a.r.m. narrowing profits in its ipo filing last night bringing into question what the fate looks like for this company backed by founder and ceo son. what it will look like what this big debut likely to be the biggest debut of the year has in store. our deirdre bosa takes a closer look at his moves in today's" tech check." hey, dee. >>> mayayoshi son wants to lead the revolution. a.r.m. could help the case. the biggest market is smart phones. that shows through in financials, shrinking revenue and narrowing profitability and even a successful ipo may not make up for other potentially bigger missed opportunities. perhaps the biggest ai black eye for mayayoshi son is the undisputed ai winner. softbank wanted to sell arm to nvidia but couldn't get it past regulators. it would have given softbank a $25 billion stake in the chip maker that would be worth nearly $100 billion today given nvidia's giant runup this year that would have been a fourfold return in just a few years and far better than a

softbank has timed this to capitalize on that a.i. atmosphere. >> live in london, arjun, thank you. >>> more to come on "worldwide exchange," and the one word investors need to know today. first, s&p joins moody's taking the axe to a number of regional banks. >>> plus, calling it a changing world order. russia and china kickoff a summit focused on the brics. we have a very busy hour of "worldwide exchange" coming up. stak stick with us. ata ac uds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create. >>> welcome back. let's check on the corporate stories with silvana henao. ha silvana, good morning. >> good morning. s&p downgrading key corp and comerica and three others in the u.s. on concerns of the impact on rising interest rates and deposit outflows on

we are watching softbank very closely, up 2.5%.he big news overnight was the semiconductor unit arm filing for an ipo, seeking to list its american depository shares on the nasdaq, under the symbol arm. putting the ipo on track to be the year's largest in the u.s., and could end up renting is one of the biggest tech listings ever. for more, let's bring in our tech editor. we talk about the valuation. what do we know at this point? mayumi: the valuation is still to be determined. softbank still has a vote show to go through where they will try to pitch arm as an ai play, how convincing they will be will probably help. the more convincing they are, the higher the valuation will likely be. a hint we got in the filing was a disclosure that softbank bought the 25% stake in arm that the vision fund holds for $16 billion. that would indicate a roughly $64 billion valuation that softbank is looking for. yvonne: arm is interesting. a lot of investors were not too sure about what this company does. people are starting to understand that they

softbank are busy looking — created in the uk. softbank are busy looking at _ created in the uk.y looking at an ipo as - created in the uk. softbank are busy looking at an ipo as you . busy looking at an ipo as you mention. good for your take on that, russ. to australia now — where thousands of households have faced a steep jump in energy prices in recent weeks. some have seen bills go up 25% as regulators set prices for the coming financial year. the government came to power promising cheaper energy by 2025. it argues a shift to renewable energy sources will be cheaper for consumers in the long run. butjuly�*s rises have been a blow to people already struggling with the cost of living — as phil mercer reports from sydney. home should be a cosy sanctuary in sydney for deanna 0lmos. but rising costs have made electricity almost unaffordable. so she does what she can to beat the winter chill, but worries about the future. power prices will increase by 20—25%. i cannot afford that. i don't know how we are going to survive this time, with a huge cost of living rise, the rising of ene

since acquiring arm in 2016, softbank has touted the role it will play in the ai revolution.fering to american investors will be a test of that claim. let's begin in china, because an incremental cut to a one—year lending rate on monday has raised concerns that the world's second biggest economy is weaker than expected. the one—year loan prime rate has now been reduced twice this year... and stands at 3.45%, ....down from 3.65% in may. the aim is to nudge businesses and individuals to borrow money. the central bank has traditionally used it as a tool to slow down or boost economic activity. it is known as the triple r and since december, the people's bank of china has produced that twice. combined with additional cuts to the loan prime rates they paint a picture of an economy where retail sales are weakening, inflation is absent and the key property sector remains in a slump. hong kong—based market strategist vincent chan of al theia capital told me the market thinks the chinese government is not doing enough. the company seems to be more concerned about growth but it is not

to tech now — and japan's softbank group.efront of lots of international tech investments — into things like cutting edge artificial intelligence and robotics. softbank is due to post its latest earnings today and is expected to report a return to profit on the back of things like the recent ai boom. lets talk this through with mark schaub — international partner at king & wood mallesens. marc, good to have you on the programme. talk us through softbank and many names that it's involved with. we may be familiar with, what are we expecting it to say today? morning. i think what we're expecting today is that it's had a very tough run in the last few months or last year and had some major losses. so i think perhaps, you know, with all those fingers in different pies, a lot of focus has been on the loss—making companies like the fdx investment which is a big ponzi scheme, the crypto exchange. we work which really didn't make sense, and irl which is a social media company where mostly users for bots, not people. as you mentioned b

since acquiring arm in 2016, softbank has touted the role it will play in the ai revolution.fering to american investors will be a test of that claim. let's begin in china, because an incremental cut to a one—year lending rate on monday has raised concerns that the world's second biggest economy is weaker than expected. the one—year loan prime rate has now been reduced twice this year... and stands at 3.45%, ....down from 3.65% in may. the aim is to nudge businesses and individuals to borrow money. hong kong—based market strategist vincent chan of al theia capital told me the market thinks the chinese government is not doing enough. the company seems to be more concerned about growth but it is not doing enough as the market expected to boost growth. market expected to boost urowth. _, ., , market expected to boost urowth. ., , ., ., . growth. the economy data which shows weak _ growth. the economy data which shows weak growth _ growth. the economy data which shows weak growth and - growth. the economy data which shows weak growth and record i shows weak growth and record high

softbank is starting to make investments again. mission funds has made its first profit in six quarters on the tech rebound although arm has tumbled to a quarterly loss ahead of the ipo. without the earnings results earlier this week. -- we got the earnings for results earlier this week. u.s. stocks trimming the losses as did buyers swooped in. let's bring a kathleen hays and emily. we had plenty of commentary early in the week from fed officials and we are getting more today. what are we seeing in terms of that hawkish or dovish shift? >> hike or hold, that is the big question. september is still weeks away. we have three big economic reports. cpi this week then another one after that. this is a long way away, but everybody is still looking marking up their territory. the president of the richmond fed is a centrist. he is never going out ahead with hawks. i don't see him lagging behind with does. his adamant that the economy is still very strong. the atlanta fed gdp index is a tracker it shows third-quarter gdp could come in above

shery: softbank's chip unit files for what could be the biggest ipo of the year. paul: around the in big taxpayer not rebound in u.s. stocks. shery: goldman sachs will further unwind its --. u.s. futures coming online in the asian session per muted at the moment. we saw mixed finish. tech leading the gains in the s&p 500, which rose for the fourth time. tesla game in the most since march. we are watching the dollar swinging between gains and losses, finishing unchanged. oil falling and continuing to feel the pressure in the asian session. we do have more signs of a rebound in supply. take a look at the treasury space. volumes were quite low, 75% of activity. that is leading to big moves in the yield space. two year yields rise in about 5%. if you are looking at the inflation protected treasuries, yields pushing over 2% for the first time since 2009. the 30 year also, a 2011 high. a major shift as we are seeing the ads of recession in the united states receiving. let's turn to our top story. softbank's semiconductor unit arm has filed for an ipo seeking to list its

softbank bought it and softbank did what softbank does which is mark it up.hey, this is worth 64 million as a privately traded company that we sold to ourselves and then now they want it to go public north of that, and the question is will the market agree with softbank because we can look at wework, that was another softbank deal where they marked it up themselves and the market did not agree. charles: they tried to pull a fast one. i loved arm when it was publicly-traded. we were lucky to have subscribers in it when the deal was announced. you follow these names not just as incubators and ipos, throughout the market. i was looking at a chart from harvard. it clear outperformance by founder-led companies versus not founder led. founders add something extra, add something a little extra to the buy theory? >> i mean i think that people love a founder-led company that's doing well and you don't have to be founder-led. instacart, the ceo founder stepped down a couple years ago and they brought in an awesome woman from facebook who really helped drive up their ad

softbank is banking on this and if it happens, it will be a big deal. launched in 2017 and has investments including apple inc. all,. if arm goes public which is a loss to the u.k. because they initially said they would list their but it would be a win for softbank. we don't know how much they will sell its stake when it comes to the ipo but we must be guessing it must be substantial. ed: isabel lee, thank you very much. up next, the investment management platform for businesses and is are integrating artificial intelligence into its services, unveiling one click ap to help input data in seconds that would normally take finance team hours. joining us is the row ceo. what you are doing is at the heart of the debate of where ai disrupts. does it aid jobs were displaced jobs? start by explaining what you're ai powered tool does. >> thank you, it's great to be here. rho is an all-in-one finance platform which means we combine products like banking, expense management, corporate cards. we are infusing ai into all of our products starting with ap. it leads to

seven years after softbank bought it. sculptor spurn, the hedge fund rejects a bid. we will get the latest. with my cohost in london guy johnson prude welcome to bloomberg markets. it's hard to take any price action seriously. we have a lot of stuff for the next week. alix: vault -- guy: get a glass of water. volumes are epically low. we are going to get into the period where it will last two weeks on the volume side. there are some massive effects. does it conclude with powell. will the power -- will powell be the nonevent of the week. you want to set up and think about where expectations are the moment. the real surprises could come elsewhere. the bar is really high. it'll be worth watching. do we start to cease some spillover effect from china in that data. it will be interesting for the equity market. powell needs to confirm next year. if he doesn't do that then it will be an event. how long he talked for and what he says there will be significant nuance. lagarde also speaks that day as well. alix: the nvidia story is quite key because last quarter sparked the ra

paul: the way we look at arm is relative to the value of softbank shares.cally we look at future performance. we look at the semiconductor comparable group and those multiples and our view, they have reflate it on the back of its ai push. this really comes down to how fundamentals perform and how they hold. we did see the q1 result, fiscal q1 result that due to cyclicality in the smartphone market, there was some year-over-year revenue miss in -- weakness in arm fundamental. it will come down to what the outlook appears to be for arm going forward from a fundamental perspective. we have seen comparable multiples suggest in our view, the 12 month target as we use most recently published on it ash the 12 month view factors the softbank shares could be as much as $80 billion. that depends on whether this ai demand trickles through fully to arm fundamentals. alix: the numbers are good, but it is still a -- story. thanks a lot. thank you very much. this is blue -- this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) con

since acquiring arm in 2016, softbank has touted the role it will play in the ai revolution.nvestors will be a test of that claim. more now on the brics summit that is getting under way in south africa. the brics group is made up of brazil, russia, india, china and south africa. they are meeting injohannesburg for their summit of major emerging economies and the heads of state and government have a lot to discuss when it comes to trade and economic ties. but one key participant won't be present. russian president vladimir putin will onlyjoin via a video link. top of the agenda will be a possible expansion of the bloc. 0ver a0 countries, including saudi arabia, uae, argentina and iran want tojoin the group. brics is seen by some as a logical alternative to established western institutions. however, making sure all the existing members, as well the new applicants, have enough common ground to work together may be harder to negotiate. joining me now is steven gruzd, head of african governance and diplomacy programme at the south african institute of international affairs. there

what does that mean for softbank? >> softbank help the debt restructuring.hey continue to have a positive view on the industry of these flexible offices, but for we work, it is clear the company needs more restructuring before the company can get back on its feet. we will have to see what happens and how they turn things around going forward. yvonne: softbank itself talked about how they are looking at in production investments -- approaching investments. softbank beginning to invest again? >> it is significant that bayer kind of back into investing. they said they spent almost $2 billion in investing in the june quarter. compared to its peak, when in the past they spent $20 billion in the quarter, it is still a very small amount, so in that sense it is still kind of timid. it is still significant because they have been very quiet on all investments in the past few quarters, so hopefully, the expectation it is they will step up investing going forward cautiously. we will see what happens there. david: our tech reporter there for us in tokyo. let's pivot to s

at least, softbank seems to think so.: talk us through how the chip sectors fared and what the outlook is for the future. matthew: despite these negative revenues, it has performed quite well. the index is up 30% year-to-date. it is doing pretty well. the outlook really depends on the strength of the global economy. this rebounded particularly in smartphones. ai also has a massive opportunity. and just the kind of spread of chips into pretty much every device we use every day. automotive, cloud, everything. that is what has been the big picture by softbank about why they bought arm in the first place. it will get into everything we use. chips are going to get smaller. there is still a huge growth opportunity in the mid to long term and i am sure that is going to be a big part of their ipo pitch, too. lizzy: an exciting story. thanks to bloomberg's alex webb and matt from bloomberg intelligence. a cofounder of an investment firm says the fed is saying hope for a soft landing is almost guaranteed to be wrong. why he thinks

the valuation will help softbank. that is why softbank is not exiting them right now.se numbers are talking about less even given the current leverage. people have only just realized how important the aa market is and how important it will be in the space. we have had the story for a long time. haidi: great to have you with us. it's get you to some of the other corporate stories. the annual forecast is being adjusted. they have authorized a one billion dollars for technology. demand has been unprecedented. shares have announced selling. leaders after rising interest rates. the ceo told us exclusively how they are set to benefit away from cash. >> i think the biggest opportunity is that japan is steadily becoming a cashless society. when it comes to digital banking, we are hearing questions. our job is to concern the reliability of services. it's a great challenge. >> speaking of opportunities, what do you think of the policies? do you think it's going to help your business? >> the majority of our assets have floating interest rates. probably the highest proportion amon

softbank with struggle with the investors and they ended up backing it entirely.rhaps this is one way to keep in on the existing investor base and get involved in more deals a.r.m. is the bright spot of the vision fund portfolio. >>> it has been a strong year for tech stocks fueled from the a.i. rally the nasdaq has slipped 3% in the last 30 days posting the first back-to-back losses this year nvidia shares just reported their biggest weekly decline in 11 months. of course, still up 180% this year tech giants are betting big on the a.i. revolution with nvidia looking for a strong demand for chips and alibaba says this has only just begun. chris ward is joining me chris, before we launch into the big stock picks, i believe you are also co-manager of the a.i. fund give us an overview of the a.i. fund. >> good morning. thanks for having me a.i. fund we set up in 2017 means we have been doing this quite a while. the a.i. fund has been playing in the global equity funds to invest in the companies depending on the artificial intelligence platforms it is a global fund wh

its owner, japan's softbank, has finally filed the paperwork for a new york market listing.s highly anticipated floatation should net its japanese owner tens of billions of dollars and will be the biggest initial public offering in almost two years. arm is based in cambridge and plans to make its american stock market debut in early september, selling its shares on the nasdaq exchange. our north america business correspondent, michelle fleury, has the details. arm didn't reveal the number of shares that were selling or pricing of the offering but is reportedly for evaluation of between 60— $70 billion. ahead of the ibo the cambridge company revealed revenue was down 1% from a year earlier. the company, currently owned by japan's softbank is a chip designer whose technology powers most smartphones around the world including iphones. in 2020 silicon valley chipmaker nvidia tried to buy arm but the deal fell through because of regulatory scrutiny. despite that setback in video is apparently in talks to take the motor stake in the company when it goes public. 0ther motor stake i

what are they in terms of softbank?hy would they not want to sell into this ai euphoria at the moment? do they want to keep hold a little longer in the near term? ian: they were going to come to market earlier this year and chip stocks were obviously not doing very well. i would not too much into the timing. i think softbank obviously needs a win, given some of the other investments it has made which haven't panned out. in terms of the timing, and you miss -- and you mentioned the ai euphoria quite accurately, that's where we are now. i think what arm has to stay there is who is reporting tomorrow, nvidia. half of the top line product is a processor based on technology. so, they have a play and that is something they will be trying to pitch to investors more strongly. ed: bloomberg's ian king mr. chip, we call him. it has been an interesting few days. let's bring in lynn o'donnell -- glenn o'donnell. you have been through the filing could what was the main takeaway for you of what we have learned about arm's ipo? glenn:

yvonne: softbank is the big one too.alk about being in the black, are we likely to see that with this company now? gareth: yeah, softbank, probably japan's most-watched company. they are coming out tomorrow. given the take back market, some of their big investments look like they will be better. consensus issuing softbank will also be back in the black this quarter. the other big thing was softbank was the arm ipo is coming up anytime soon. they are looking for a valuation between $60 million and $70 billion on that one. anything that gives us a sense of direction on that deal as well will be very much in the spotlight tomorrow. david: now to china. alibaba, there are so many things we can talk about here. whether they are focused on this restructuring, guidance obviously on the back of what this economy looks like. what are you watching closely there? gareth: that's right. alibaba's profit looks fairly solid. the consensus is for a low single-digit percentage growth from them. the regulation issues have been a big thing

jeff, thanks so much >>> still ahead, softbank's semiconductor unit is eyeing an ipo as early as nexteg. details are next o create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. - [soldier] take a look at this! and opportunity is someone wh- they've left us a gift.. - [soldier] i think we misjudged them. - i love horses. (birds chirping) - [soldier] we should open the gate. - let's see what charlotte thinks. - [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. we stop cyberattacks. we stop breaches. we stop a lot of bad things from happening. crowdstrike. protection that powers you. progress toward global net zero will take big thinking put into even bigger a

liana: we look like softbank would look for 10% of the company. that would seem they haven't owned it since 2016 and they need a win. they are not willing to just get rid of this. although they did try to sell it to nvidia. caroline: the regulation was a headache for everyone. let's get an update of what this says about the broader ipo market. an equity market. i don't think i can access equity because are that many secondary sales going on right now but ultimately what has desire been like to be buying company equity in the private market? >> we have seen historically that transactions on the secondary market coincide with what we see in the secondary market. things have been slower over the last year and a half. a number of other companies will test the market but it is worth saying that arm is not your classic measure backed company. it was a company that was public until 2016. it is a very different kind of beast. caroline: one that i am sure many are rubbing their hands with glee to get back into the financials of this business. i am interest

and there is alsoclavio which is important for softbank which is the owner but important for the ipoarket going forward and the window will open right after labor day we will see how these come up with an. amber: as you mention, important for softbank which has a blemish record when it comes to investing in the tech space. >> they've had a lot of missteps and a lot were around the startup ecosystem and harm is not in that. this is a big, mature company does been around a long time and they have tons of relationships and they are ubiquitous in the mobile space. they designed chips for almost everyone but the ceo is trying to diversify the company away from more -- mobile and those of the details we will look for in the filing today. matt: it's exciting to get an ipo and then get if you'd one will be very cool. let's get to another big focus on wall street today. we have learned that sculpture capital management receive multiple takeover bids that were higher than the offer that they accepted which comes as how frank robinson slammed the deal saying is substantially undervalued sculpto

. >>> and softbank is buying the 25% stake in a.r.m softbank owns 775% of a.r.m. an this could bring in the ipo and looking to raise $8 billion to $10 billion valuing it between $60 billion and $70 billion. >>> tesla is cutting prices on two versions by $1,900 each and offering a subsidy for the model 3 vehicle amid the price wars in china some prices have been slashed by 15% as tesla looks to face stiff competition from chinese ev makers. bloomberg reporting that tesla models were selling for 50% less than in the u.s. and europe. dom. >> that is over in china silvana, thank you. >>> more to go here on "worldwide exchange," including the one word that investors have to know today. >>> why a dive in shares in china isdealing a blow to the second largest economy we have a report from beijing coming up. >>> we remember blowing smoke from the wildfires in canada turned the skies in major cities in the u.s. orange and yellow. we have the look at the risks. >>> and monte carlo, aspen and caymans. what you need to save up for if you want to spend time in the world's top

softbank, when the stock went down 93, softbank called you up, what did they say?he long-term hair holder value that you're -- charles: are they committed enough to add more money? >> we don't need more money to ride out the cycle. we have taken out over a billion dollars of costs in this, in the past 18 months, and we've brought our burn rate down substantially. we think we have capital left to last many, many years, all the way through the interest rate cycle that keyses today -- exists today and eventually when rates come back down, probably one of the best position to profit if that. charles: i'm going to get back to the company in a moment, but i want to unpa pack the anatomy of disaster for the audience. was the issue the amount of shares that exploded, the number of shares overnight that were available? did that play a major role in the selling? >> yeah. so the company has been around for seven years. many of our earliest investors, they have shares at 5 cents a share. they have our series a was done somewhere around 30 cents a share, our series b around 80

ed: the ambition of softbank has been that this ipo would be mega. filing left out a lot of details, but if they raise $10 billion, it would be the biggest ipo since rivian's in 2021 which the three of us covered so closely. i will never forget being on "bloomberg markets" with you. i think what i hear from folks in silicon valley from founders and their bankers, is we are looking at how this one goes. will it start as a catalyst for other ipos or get everyone to hit the brakes a little bit? guy: what does arm mean for my feet? specifically, my birkenstocks? what else will be in the wake of the arm ipo? ed: there are a number of companies waiting in the wings. the car sharing app, pee r-to-peer car sharing app, instacart. arm is an interesting one, because one reason that you do an ipo isn't just to raise money, it's for the publicity and prestige. to be frank, people around the world don't have a clue what arm is or it does. they call it a chip company, but it's more specific. arm designs the blueprint for chip design and has the ip on the code whic

. >> it was acquired by softbank in 2016.ce then, now finally, we have heard about all the other things going on. finally they have decided to bring you back to market and they are doing it in the u.s., not the u.k.. much to the chagrin of british politicians. there talking about whether reporting suggest they want to 60 to $70 billion valuation, they might sell as much is 10% of the stock. when you look at the numbers, the valuation looks punchy. it would be trading at a multiple that is likely premium to the philadelphia stock exchange, semiconductor index. that is the benchmark index for chipmakers in the u.s.. but the company that is not growing now, much of the ship industry is not growing and that is also why it is not growing. the designs are likely to far outweigh this. it is the likes of nvidia -- but it is also declining growth. it may not be as big and ai play as the perspectives want you to believe. jonathan: only talk about nvidia, can you run us through why this is so important for softbank to get a win after th

softbank is also feeling optimistic about ai. company's semiconductor unit arm is targeting an ipo valued between $60 billion and $70 billion. according to sources, the company could go public as soon as september. earlier this year, bankers pinch devaluation trading from $30 billion to $70 billion but the ceo and one from softbank considered the lower end of the range too low. its debut was surpassed most in the chip industry. coming up, sticking with ai, impacting the workforce, how some u.s. states are to regulate the new tech. this is bloomberg. ♪ fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops work

softbank-owned chip designer arms set to go public, seeking a massive valuation.ertainly compared with the sales levels. we'll dig into the company's financials when "power lunch" returns. somebody would ask her something and she would just walk right past them. she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i started crying. i could hear everything. call 1-800-miracle and schedule your free hearing evaluation today. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> we

. >>> and softbank falling $3 billion marking the third straight quarter of losses softbank is trimming the stake in alibaba after it saw a nearly $4 billion unrealized valuation loss on that stock. >>> and italy issuing windfall tax which is equal to 19% of the bank profits per year according to citi. the italian government expects to collect $3.3 billion from the measure. shares in europe are falling on that news. we have more from joumanna >> good morning, frank we saw the weaker economic data from china which set the tone for european markets which opened in the red. the main piece was the announcement from the italian government which caught people by surprise. you see it ftse mib is lower down by 2.2% today the others were lower based on the links to china let's start with the italian sector this is one of the worst days we have seen. unicredit is down 5% these banks had a very solid run year to date unicredit was up 70% before the pullback today the reaction in the market tells you this was very surprising and really impact the outlook for the distribution and returns investors w

it is more than double what with softbank paid for the company.he question here is how is that valuation worked out in the environment? if you look at a.r.m. currently, the revenues fell in the quarter year over year. a slowing smartphone market. that is the bulk of the revenue for the smartphone chips. it hasn't pivoted into the new areas it has been speaking about for the last few years. there are questions about how quickly this company can grow. the valuation, i believe, is underpinned by one thing. how well it convinces investors this is an a.i. play. that is going to underscore the valuation. if they say they have the right business and the technology to play in the a.i. space, that is key. the importance of a.r.m. and what it does. it creates the blueprints on other chip designers base their chips. 70% of the population uses an a.r.m.-based product. 90% of products include a chip. the question is how well can it transition into new areas? data centers and does it have the chip architecture to support that? a.r.m. says the central processing

you can take a look at softbank shares. it's going to be a win for the company.this company some time ago. uk-based if you recall and ubiquitous when it comes for their designs for the chips in cell phones and so many other things around the world. they are banking on a.i., of course, during another leg of growth for and with along with so many of their customers, and we got the filing as i said, for the ipo and we learned some things, leslie, in terms of where revenues stand and earnings, not a lot of growth, in fact, at this point, so there will be some questions as to multiple -- there's a picture of rene haas, the ceo of the company, soon to be public, although still to be controlled by softbank. they will be selling roughly 10%. there's a look at the financials as we have them from the latest quarters that are being reported in the filing. they are, i'm told, talking about significant growth, double-digit growth into the future, which should give you some sense but figuring out a multiple on that earnings number or on the revenue number, of course, is going

. ♪ lizzy: it is time to look at the big deals making headlines, bloomberg has learned softbank's armilled out the underwriters for its ipo. 28 banks are in on the deal. why is this ipo of arm so relevant and closely watched globally? >> it is extremely important. there is such a big drought in terms of dealmaking activity. ipo's, m&a, fundraising, it is a soft market. having such a landmark ipo coming down the pipe is significant. everybody is watching. here in hong kong, in london, new york, it will be one of the biggest events, if not the biggest of the year, and in capital markets. you saw our story of banks that want to make sure this deal gets done properly. it will send a big message to every capital market globally, and hopefully, if this gets done successfully, as early as september, it could pave the way for other ipo's and big companies who are pondering options about different units in different businesses to come to the market. it has been a tough year, tough 18 months for ipo's globally. this one definitely will be a significant one. the stakes are really high. people ar

a number of companies including softbank, foxconn and k-pop entertainment company hybe.ainment stocks have soared this year on the popularity of k-pop groups. haidi: sticking with the theme, bloomberg intelligence expects entertainment stocks to drive the growth of south korea's etf market. our next guest is here. how are investors getting in on this bandwagon, from blackpink, to bts, even though they aren't actually performing together at the moment? guest: there's actually an entertainment etf that tracks all 30 of these companies in south korea. it is called k-popus. there has been a hype into this area whether it is bts or blackpink. a lot of people especially in south korea are really into the dramatic themes. south korea ranks fifth by assets under management in south asia. it is japan, china, taiwan, australia and south korea. in south korea we have a lot of interest in the sector and hybe has 320 one etfs that track the sector. haidi: what are some of the trends? rebecca: some of the trends are a battle between two companies, one of them being samsung. they are n

and before we go, shares in investment giant softbank group have jumped about 2% this morning.net loss of more than $3 billion for the first quarter. the bottom line was hit by a week yen and also a drop in the share prices of major holdings. that is it for this addition of asia business report. we will be back tomorrow morning. so do join us if you can. but for now, thank you forjoining us. bbc news — bringing you different stories from across the uk. meet the cheshire ghost riders, who are gearing up for a home world championships. it's a whirlwind of emotions, notjust adrenaline. you're focused during the flow state, and then you're across the line before you know it. i'm absolutely buzzing because i did the worlds 11 years ago now. i had an awful accident in which i broke my hip, i couldn't walk for seven years. i recently got back into it and qualified again, and it's amazing. there was no stopping getting me back on. if you look at kids under ten, they are the most fearless, they don't have to get up and go to work. here at this bmx track, the club have a total of eight r

softbank backed better.com. that company went public via spac. it was an unmitigated disaster, guys. it fellmore than 90%. halting trade four times in the first 30 minutes. in 2021 at $8 billion valuation and it was at $14 billion earlier this week based on the post-merger full share count in the latest filing, delusion, post-spac and pressure put this company at less than $1 billion. yet it still went out. many people i talked to can't figure out why. but looking broader again. there are reasons, perhaps, to look past better.com for instacart and the likes. one, better.com was a spac and investors have wised up to its structure. two, the mortgage rates are at its highest levels in two decades. not a good time for mortgage origination companies. gig economy may be in less precarious positions but we'll soon see if it's a bullish one. it's starting to feel like 2021 again, guys. we'll see if those valuations follow suit. >> watching uber in light of that, down 2% today. thank you, deirdre bosa. >>> as fed chair powell maintains his hawkish stance,

more specifically in japan we saw news about softbank and masayoshi son is exploring an potential iporound the semiconductor unit with a valuation of upwards of $60 billion. this is according to people familiar with the matter and we will hopefully get more details in early september around a roadshow. back to china, more details around there. and there stimulus plans today so regulators are pushing local governments, regional authorities to speed up their local bond issuance which will help with infrastructure spending. it has been a lot of positive drip feed and soundbites. we have seen measures to help with consumption and invigorate capital markets. we will have to be patient for a bit longer. historically, august has been a pretty rough month the greater china indexes. going to currencies here, the risk-on sentiment still playing out in the currency market. we have aussie dollar and kiwi dollar -- kiwi dollar falling a bit. it is extending declines since the reserve bank of australia held rates as a. the kiwi dollar is sinking. they had unemployment data at a two-year high. i wan

talks about joining technology companies like intel and nvidia to become an anchor investor in softbank'ster they reported narrower than expected q2 loss and increase in vehicle deliveries and raising four-year production guidance. those shares up almost 2%. >>> lyft popping on a solid earnings report and guidance and dipping after the company hinted of renewed price war with rival uber shares down almost 8%. >>> lucky player in florida winning the estimated $1.5 billion mega millions jackpot. the largest jackpot prize in u.s. history. >>> markets poised for a higher open following rough day for wall street yesterday. futures are in the green across the board. >>> my next guest is likely seeing a few speed bumps for stock high on her radar. victoria green, cnbc contributor and she joins me now vicki, always great to see you >> thanks, frank. >> so you see some speed bumps correct me if i'm wrong, those seem like speed bumps already but they say these come in threes what do you see in the near future >> i see us hitting macro head winds we have seen with manufacturing continuing to go down

a reminder, softbank bought it in 2016 for $32 billion, expected to price more than that, certainly.es have touched a 52-week low today. and we are just about off that low at this moment to $12.66. stock is selling off following its second quarter earnings report. the retailer reiterate a cautious outlook for its full-year profit guidance citing consumers who are prioritizing paying off their credit card and student loan debts over making retail purchases. gotta make a choice when times are tough. checking other department stores, they're really all getting swamped here. kohl's lower by 10%. nordstrom down merely 10%, and target is down about 2.6%. >>> flip it over to shares of novavax, they are jumping close to 14% right now as the covid-19 vaccine maker said its latest vaccine is effective against a new strain of the virus known as the eros variant in clinical trials. the new shot is expect to be rolled out to the mix in a few weeks pending approval from the fda. and speaking of covid, if one company enabled the world to communicate during the covid lockdowns, it was zoom video. th

and its softbank ownership who interests may not coincide with their own interests or the interest of shareholders. now, the prospectus pitches arm as the foundation of the semiconductor industry. demand in its major end-markets, however, like smartphones, has been weakening, so, a lot of this and a lot of its valuation will depend on softbank's ability to make the case that this is an a.i. company. and it plays in this sphere. now, it needs to make that case to be valued in that reported range between $60 billion and $70 billion. latest transaction. $64 billion. it was a private transaction. others on wall street valuing it much lower, like a bernstein, saying $40 billion. so, this could really land anywhere, and a lot of it is going to depend on how it factors into that a.i. hype cycle, and how the markets are feeling, like valuing tech companies. >> d, did you say that arm is going to trade under the ticker symbol a.r.m.? >> yep. >> who thought that up? >> it was -- >> hey, they dropped the h, okay, tyler. i don't know, call that creativity? >> thank you, d. bonawyn? where's the va

softbank's chip designer arm is preparing to go public in what would be the biggest u.s.irdre bosa is here with the timeline and what to watch for in today's techcheck. we're expected to get the filing this afternoon, is that right? >> that is what i'm hearing and it's a big deal. it's how that is received by investors, and how they're going to digest it will tell us a lot and not just about how the market feels about arm, but the ipo market at large. so it will be an f-1 because it's a foreign filing and it is headquartered in the uk and it was controversial that it decided to list here in the u.s. so that filing will reveal its financials and its risk profile. its key stakes and anchor investors. we've heard that companies from nvidia to intel, to even amazon could be among those strategic partners so investors will be curious and that could also provide somewhat of a halo effect and drum up more interest because the stakes are high for softbank. remember it bought the company for 2016 for $31 billion and the most recent transaction valued at $64 billion, and that would

shares in wework are currently trading around 13 cents the softbank backed company has been in turmoils to its hefty losses and lapses in corporate governance. over to india now — where the central bank is due to unveil its latest monetary policy decision later today. the inflation rate accelerated injune, with food prices soaring in the last two months. so much so that tomato prices have rocketed — they now cost around ten times more from three months ago. earlier, i spoke to economist radhika rao, who gave her take on how she expected the central bank to move later. i think the rbi will meet a slightly challenging juncture. they had maintained quite a cautious outlook on inflation when they last met injune. and when they meet now, some of that has already played out. food inflation has also picked up food inflation has also picked up in terms of perishables, but also protein sources, as well. so inflation, the next number comes out injuly, it will certainly show that inflation is higher than what they anticipated, as well as a bit above target. so i think they would prefer to keep th

softbank and lee auto. yvonne: the first and one of the few ev maker's in china.t behind these calls. some of these stocks have doubled if not tripled. since the reopening back in november. why more upside? >> we indeed raised the target price because we see autonomous driving might happen. the whole space is rolling into the iphone times. the autonomous driving will be the next game changer for ev and we see li autop might have a favorable position in the second half of the competition. we do see revenue increasing as the progress rolls forward and more cities here that has been one of the primary drivers for our revision from the autonomous driving angle. david: what do you think of valuations right now given that some of these stocks have doubled or tripled over the last few months? >> this is triple level of trade . in the second quarter, we see overall person starting to stabilize. the consumer has been waiting on the sideline will finally revert to consume. this is coupled with more new model launches in the second quarter. and also the general inventory in

uk chip—maker arm, which is owned by japan's softbank, filed the paperwork on monday for a us listingember, selling its shares on the nasdaq exchange. here's michelle fleury.