with the actual spac holders we're going to talk about bill ackman's spac, the lawsuits, i reported on this yesterday i want to clarify some of those things i want to talk about minimum cash requirements in spacs this is coming up a lot lately given the very high level of shareholder redemptions. ackman put out another letter basically saying, listen, he's going to try to move to a spark, which is a new vehicle he's creating, that he wants to get the s.e.c. to sign off on. if it's approved by the s.e.c. and he getz the spark warts as well, he says then, you know what i'm going to do with psph if we haven't entered a merger transaction, i'm going to give you your money back and then you're going to get an opportunity to participate in the spark. they don't take your money it's kind of an option to participate in a future deal it would be a new structure. ackman spac was so large it made it very difficult to find a potential target he talked about things like bloomberg, which i've reported is not going to happen and any number of others it does seem likely he's going to give the money

there's the spac 50.se are the ones that have gone, that have announced their deal and closed their deal, right? okay >> well, there's a very good piece by axios out today talking about by the numbers in july the majority of spac deals saw redemption rates north of 50% about a quarter had redemption rates of 80% >> listen, we got a new one today and it's a big one we'll have richard branson join us vi virgin orbit this is not putting tourists into space, this is putting satellites into space. we'll have dan hart, the ceo and sir richard join us as the founder of a $3.2 billion deal with nexgen 2. it's up but they're going to raise $483 million that includes a $100 pipe. by the way, that pipe number is well down from the likes of which we had seen during the height of spac mania which you'd get 300, 400, $500 million pipes. so strategic investors that are in the industry in boeing. and they are hoping to close it by the end of the year by the way, nexgen 1, we had them on. they did that last mile trucking

he said the unserious spacs, the unscrupulous spacs and then the serious spacs which he would attributetors. i would presume meister would be in that camp. >> a tougher market to bring something to market, but the good ones get through. lessee, thank you. leslie picker, following the money. thanks to sofi. ♪♪ thanks to sofi. tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. >>> miss a show? don't sweat it the half-time report has a podcast, market moving interviews, call of the day, unusual activity and, of course, "ask half-time." look for us on apple podcast follow the fast money podcast. that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold med

of spacs being announced every day. and we certainly don't see anywhere near the like of that some of those high-growth like ark stocks come back to earth a bit. that's been a healthy thing in your mine. it saved perhaps some of the greater pain that would have potentially existed down the road >> yeah, like, let's use an example. you asked that question. made me think about last week. i think we had a trillion dollars of capital loss in chinese adrs if you told me that that would have happened without having contagion on equity markets six months ago i would have said no way. so we had -- the second largest economy in the world where a lot of growth equity is invested, you know, and in many people's opinion become uninvestable. and equities are up. so the self-correcting -- the market has a lot of liquidity right now. and i think, you know, it's hard to fight that right now. >> yeah, no, interesting topic the chinese stocks we'll talk more about that later on because kevin o'leary with us today is actually buying some

even as we have another spac deal close with spire, the latest spac to start trading that does it for us on "squawk on the street. "techcheck" starts now >>> good tuesday morning welcome to "techcheck. i'm carl quintanilla with deirdre bosa new rules in china saying tech stocks in china lower again. it is -- is it time to join the hedge funds and exit that trade? plus, the latest on a major data breach at t-mo it may have impacted up to 100 million customers. and how america's tech giants could fall morgan stanley making the bear case >> we start with another sharp sell-off in chinese stocks as carl mentioned big tech companies in china shed more than $50 billion in market cap yesterday after new rules were announced and they're down again today here in the u.s. baba, tencent, baidu, they are all in the red by about 10% each the new measures banned businesses from faking sales stats, posting misleading customer reviews, and hiding negative comments. and platforms they can't use data or other algorithms to influence customer choices today we got a peek into the funds that actually boug

spac world.ll" will be right back over the years, mercedes-benz has patented thousands of safety innovations. crash-tested so many cars we've stopped counting. and built our most punishing test facility yet, in our effort to build the world's safest cars. we've created crumple zones and autonomous braking. active lane keeping assist and blind spot assist. we've introduced airbags, side curtain airbags, and now the first-ever rear-mounted front-impact airbags. all in the hope that you never need any of it. ♪ ♪ at usaa, we've been called too exclusive. because we were created for officers. but as we've evolved with the military, we've grown to serve all who've honorably served. no matter their rank, or when they were in. a marine just out of basic, or a petty officer from '73. and even his kids. and their kids. usaa is made for all who've honorably served and their families. are we still exclusive? absolutely. and that's exactly why you should join. and there you have it- are we still exclusive? ab

but there are still a lot of specs -- spacs happening.here is still a lot of activity in this space. joining us is our guest. a prolific investor. taking several companies public. what is it about this vehicle that you find so appealing? >> i think it permits a lot of flexibility. the opportunity to understand the needs of a company and structure transactions around it. it allows a company that has come to an inflection weight -- point to be able to share with investors. what the company might look like a couple of years out. there are a lot of real conversations and analysis. and commitment. to understand the company. romaine: the idea that this will continue. maybe not at the frenzied pace we have seen. but this is a legitimate way to come to market. we will continue to see this for years to calm alongside the big ipo's. >> i think we have grafted a third leg to the stool. from a public to a private company. direct listings and ipo's would be the other two favorites. this vehicle does not fit every company. just as an ipo or a direct do

the case took aim at whether it should be regulated as an investment company since like most spacs isital in u.s. treasurys hunting for a deal in this recent letter, ackman called the letter meritless and shareholder destructive but notes the nature of the suit and our legal system make it unlikely that it can be resolved in the short-term. as such he is focusing on an ackman creation known as sparks. unlike a traditional spac, a spark would give investors the choice to invest in the deal after announcement as opposed to the reverse as is the case with the traditional blank check model. ackman space is the sp arc are is approved and pruvrd on the nyse he will seek shareholder approval to return the $4 billion hell in trust but certainly the controversy is not over at any point for this spac we talked about many times on the show. >> yeah, there is a retail angle here be with too, right leslie. >> yeah. >> there has been talk throughout the week about retail investors feeling burned by in whole thing. what do we know? >> absolutely looking at shares trading the way alter in the spac, i

against bill, spac, taunting holdings, remember ptf, and then led mr. then move on to this new creation i have in mind called the spark, which he has to get s.e.c. approval for i mentioned this lawsuit in the particular because it could have brought ramifications for more spacs themselves. the case was being argued by robert jackson he's a former s.e.c. commissioner and john morley, a law professor at yale. basically it said that the spac isn't an operating company but actually an investment company, therefore, should be regulated by the investment company act of 1940 a look at this by the way, remember, came at 20 it is below the issue price and it may well be that he returns the money. remember, tried the universal deal initially through the spac, then outside anyhow -- but what's important here is for the broader spac what i'm hearing and have not been able to get ahold of mr. jackson and confirm this as yet, but a number of people this morning mentioned to me that they are hearing that this is going to become a broader claim against many other spacs

a spac is interesting. at some of our industrial businesses, some of our old economy businesses, the only way a spac gets to buy into those is by paying more than full price. when you pay more than full price pay, he will be hard to dig yourself out of that. so spac's to invest in distressed deals, special situation deals, generally -- i'm not saying never. generally, i just don't see what happens. but if you are going to invest about something, i think maybe that that is just not us. it is not us. alix: that was victor khosla speaking with erik schatzker. i think that jody might think differently, that stuck listing today after going public. the spac's doing quite well come all about betting on those flying taxis. guy: this is the ultimate special purpose vehicle, but i guess they want to make it ubiquitous. alix: that was really good. nice work. guy: that was half the accident. it is not by design. this is my big question. they want to scale this, they want to make these things basically become as cheap a

you could -- spac's, but you could sponsor anything. why joby?s that thing that moving urban transport, uber meets tesla in the air. that can transform commutes, stop gridlock and not have the climate impact. to do all of these things in a way that makes cities healthier and more fun, and more ability to get around. that redefinition of transport, of networks, is one of the things i have been doing over the last five years to seven years. i did once i saw it, this is a new network. networks are how we transform our work, our experiences, networks, i understand. emily: we have all imagine that jet sony and -- jetsons future. we are not there yet. is this realistic for one billion people. how does the scale? does it reinvent transportation, or just augment transportation? reid: reinvention is in part augmentation. you will have ground cars. you will be moving heavy things around. there will be various things on the passenger side, but the reinvention, what was previously configured by geography, the flight or drive to the airport, think about getti

a home insurance start-up celebrating its listing via spac acquisition spac celebrating its ipo. >> spacs. 69.75. i know you tweeted yesterday that ten-year 115 was beginning to freak people out. >> totally permian is continuing to pump, when they get at these levels, the oil companies are very happy. to pump as much as they can. let's not forget that this is a lot of them, they have really cut costs. i -- i know the guys at devon and they have a level of discipline that has become the model for the industry and they can make a ton of money at these levels. >> they can? >> they can. >> permian make as ton of money at these levellevels. >> and the money not spent to open up -- >> that's what's really interesting. that they're it just returning it to shareholders now, bp with a remark return to shareholders in dividends today. these are brand new. the way these are handling their future is traumatic and don't forget in some places they don't want to drill, because, wait a second the president doesn't want drilling. now, it's very different than the previous president these are companies tha

i think the opposite is true >> let's pivot to spacs now.s and others are trying to come out in defense of the spac which is really not gotten a great reputation what's your own opinion? >> a company that is public company ready will determine its own fate a lot of money raised early in the last 18 months in the spac market they were chasing deals and there were companies that were ultimately spac'd into companies that weren't ready to be public companies. i think a company does need to be able to go public the ordinary way or else it's not going to succeed i think there were too many examples of spac companies that really weren't ready to be public and that's why they haven't succeeded. i think we're seeing a rationalization of that and more scrutiny of companies that become part of a spac ipo. the quality going public via spac is much greater than it was even six, nine months ago. i think that will be a trend a spac will be a viable alternative to going public. i don't think the quality of company is going to be diminished versus a traditi

i can't speak to the broader spac market. i barely understand those words. not really my forte.'m more of a technologist i can tell you building with partners and customers is what the company does ip would say a spac vehicle is, you know, it's not really necessarily the strategy of the company. >> jeff, let's talking about the technology, because we've been talking about warby parker filing to go public. that's a direct to consumer company. just had intuit's ceo talking about the importance for small and medium businesses of leaning in to technology and having better systems at this time. that's a lot of what twilio does as so many businesses trying to accelerate, hopefully, out of this pandemic, what kinds of messaging technologies, what kinds of ways of connecting to a meme, connecting with consumers, are going to be most stra teateach i strategically important? >> the companies that build the most, tightest connections, with their customers are the companies that win the companies that win the hearts, minds and wallets of customers. because it takes it out of the realm of tr

when we look at spacs, and by the way, we get the bench, the bank has come to us. it is like, why bother? why are we getting distracted with all of this when we've got a pretty good opportunity in front of us here to do what we do? erik: do you think spacs are a legitimate vehicle for special situations? victor: i don't think so. erik: how come? victor: you know what, i will tell you what i think spacs are a good for -- are good for. if you have an investment, where some tech investment or something, where you can make a lot of money, or you can lose it all, a spac is interesting. if you look at some of our industrial businesses, some of our old economy businesses, the only way spac gets to buy into those is by paying more than a full price. when you pay more than full price, hey, it's going to be tough to dig yourself out of that. so spacs, to invest in distressed deals, special situation deals, generally, i'm not saying never, generally, i just off the -- don't see what happens. if you are going to invested on something, yeah, i think maybe there is room for it.

kind of chill on the spac market.uit around, literally, in the past hour as people try to make heads or tales of it one of the ironies i will say of this whole thing is that i would argue the bill ackman, pershing square version was more investor friendly than the others pay for performance perspective, there were warrants and they only got paid off if the company was successful in the case of the universal music group deal, they weren't even getting warrants. there's a lot of of course the s.e.c. tried to block the deal with universal group which could make the whole thing moot, too it's very complicated. >> look, the spac industry has chilled to a huge extent depending how you want to look at this. what's interesting, andrew, is what you brought up about how it affects compensation if it's an operating company versus an investment company, is that tax implications as well as how this all goes down >> i think it's more the way these things are governed and an arm's length deal of how this is organized and how the reg

it is difficult to make a conclusion on whether a spac is the right move versus ipo.t is true and demonstrated, this alternative route of forming a spac and finding the target is bringing new investment into the market as far as more traditional ipos go, we think we will end up similar to last year around 80 companies going down ipo it looks as though the first half of the year is anything to go by, average proceeds will be a little bit lower that largely reflects the private fund raising market is so large, but these companies with the software industry are able to stay private for longer which reduces the pressure to go public in the first place and reduce the amount they need to raise when they eventually do go public >> a question on the geographic distribution how is europe and the uk faring versus the u.s. at this point? we are accustomed the deals done in and out of the u.s. where does europe stand? >> europe is a smaller market. it is a very important one and rapidly growing and catching up as well. you know, the uk within that is the largest market in europe

i will speak to reid hoffman who cosponsored this spac later this hour.irst, look at the markets with kriti gupta. walk us through the day. kriti: it was all about that inflation print. the market was relieved not to see sky high inflation, the first data print come inflation metric that did not surprise. all the way back to the s&p 500 march. up 0.3%, a sector-wide gain today. you saw some money going to treasuries. people not so hot on tech. we have to talk about bitcoin. when risk sentiment is high, bitcoin tends to be higher. it has been under pressure lately. you have seen that. the question is can that rally continue? compare this to what you saw 2016 to 2017. the rally was similar. if history is any indication, bitcoin has room to run. i want to end with earning stories, going from macro into micro. ebay missing third-quarter forecast, but expanding buybacks by $3 billion. we did see shares up after hours by 4%. those earnings are weighing on investors. now done 1.2% after hours. i want to end with bumble beating sales estimates and beating revenue

from chinese adr's to ipo's, spac's. the meme stocks, where is the money going?is that it seems to be going into biotech. since the pandemic started, biotech in particular has been outperforming the s&p 500. this is a crucial element because that is not just the vaccine makers. even those cancer therapy makers, they are all in on the trade, something to watch as we start to navigate the rest of this pandemic, emily. emily: kriti, thanks so much for that update. now, maven clinic, one of the largest virtual platforms dedicated to women and family health, just announced $100 million in new funding led by dragoneer and lux capital. the telehealth platform offers access to an on-demand network of fertility specialists, adoption coaches pediatricians, , and childcare experts, for with companies like microsoft and snapped offering access as an employee benefit. joining us now, maven ceo katherine ryder and lux capital partner deena shakir. kate and deena, thank you so much for joining us. kate, as a mom, as a woman, i know how unique this path to parenthood is. and how

i mean, is there any value left in spacs, should we be angry?here it had no whetherrer to go so the spacs went absolutely crazy as you saw on that chart and a lot of the folks in there earlier got out when all of the individual investors came in some of the founders and so forth and some of the creators of those spacs so yes going forward this is a lesson in time of just seeing how hot things on wall street, sometimes don't turn out so hot and they stay hot for a little while, but if it's hot enough for you when you get in and maybe hotter when you look to get out that probably is a good time to get out and don't ride it until it cools off like it has. charles: yeah, i thought the idea was fantastic, but the more we learned about it the more they were constructive, how these insiders made big time money out of the gate. it doesn't feel right. i really believe something doesn't happen these spacs don't come back on their own we could see some serious investigations. i like the outfit, you can't wear that after labor day though >> i'm going to any

from chinese adr's to ipo's, spac's. it's going into biotech.andemic started, biotech has been outperforming the s&p 500. this is a crucial element because that is not just the vaccine makers. cancer therapy makers, they are all in on the trade, something to watch as we navigate the rest of this pandemic. emily: thank you so much for that update. now, maven clinic, one of the largest virtual platforms dedicated to women and family health, just announced $100 million in new funding led by lux capital. the telehealth platform offers access to an on-demand network of fertility specialists, pediatricians, and childcare experts, for companies like microsoft and snap offering employee benefits. joining us now, maven cl katherine ryder and deena shakir. kate, i want to start with you. as a woman i know how you -- how unique this path to parenthood is. what are the needs you are serving that are not being met by other options? kate: thank you so much for having us here and i think that is exactly it, emily. each path to parenthood is really unique and e

the time for easy money, putting money in spacs, is gone. you're going to lose dough if you're in low quality names. >> as long as big tech, say microsoft, you throw up that chart, what some are talking about today. throw up apple's chart if those stocks, as big as they are, and they're such a big part of the market, continue to go up or at least hang in there, look at that. up 1.5% again today. you're not getting a bigger correction unless you get a rollover in a microsoft or an apple or some of these other big names. am i right or is that just out there? >> no. i think that's true, but it doesn't mean you can't get one from those names >> of course but until you do the most important signs in a market may be the fact that those stocks continue to go up not the other things that are going down >> well that's the point because the spacs aren't in any indexes. by definition, they can't be in a bubble if they're selling for cash value meaning you get a spac trading at $9.50 that has $10 in cash in escrow, it's not a bubble. it's not going to g

more controversy surrounding bill ackman's spac with a new lawsuit claiming it is not really a spac.a step back here this company known as pershing square taunting holdings raised more cash for a blank check vehicle looking to make an acquisition. a few months ago it aimed to tie up with universal music group to buy 10% of the company that raised eyebrows at the s.e.c. and ackman dropped the deal the lawsuit filed yesterday alleges that taunting should be rendered as an investment company rather than an operating company and therefore should be regulated under the investment company act of 1940. the claim says that an investment company is one where the primary business is investigating in securities and investing in securities is basically the only thing that psth has ever done as such the lawsuit says that the defendant's decision to avoid registering the company as an investment company has allowed them to use their positions of control to extract compensation from psth in forms and amounts that violate federal law. the case filed in the u.s. district court for the southern distri

new way to play the electric vehicle boom battery and recycling company li-cycle going public via spac today at the new york stock exchange we'll speak with the ceo and the environment impacts of the revolution and speaking of evs. lordstown motors is gearing up for earnings along with ebay, bumble, sonos. we'll bring you all of those results as soon as they hit the tape >> let's focus first of all on the big stories we are watching today. mike santolio is tracking the market action. and joins us to talk about the airlines and southwest's new covid warning is elaine becker mike, let's start with you and the broader markets. >> i think we hit an intraday high each day this week on the s&p 500 and yet only up less than a quarter percent this week we're hovering and clinging to those highs. one thing the s&p is working against is a model pullback in the megacap tech stocks. it's mostly an old economy led rally. a swing back toward cyclical value and even some defensive, consumer staples and utility stocks almost everything but growth and tech take a look at russell 1000 value versus growt

you see a lot of ipos or spacs coming out and falling to earth. we couldn't be further away from a bubble and the reason for that is the innovation around which we have centered our research, the -- these five platforms, dna sequencing, robotics, energy storage, artificial intelligence and blockchain technology, are barely off the ground. the seeds for all of these platforms were planted in the 20 years that ended in the tech and telecom bust and ended in tears and there is a lot of muscle memory around that but that's not what's going on right now. the seeds planted back then are beginning to flourish now. and it is just beginning with five platforms involving 14 different technologies, all of which are about to experience s curves and feed one another's s curves i don't think the market is ready for this that's what i meant, we're -- we dedicated our research and investing to inknow vacation because we think we have never been at a more provocative time for innovation in history. >> right and i do want to get to how some of the forces are playin

a lot of fund managers bought a swath of spac. tiny positions here and there.ons with managers over others. >> a lot of big themes for whale watching thank you, leslie. >>> back to the broader market covid is getting in the way of the stock market the s&p has doubled from the pandemic lows of last march. the 100% rally is the fastest bull market doubling off the bottom since world war ii. let's bring in kari firestone. a cnbc contributor you will see her on the halftime report often times kari, has it surprised you since the market lows in march >> hi, dom actually no. those marlos were very low the market went to seven times ear earnings it was an unbelievable sell off. the market bottomed before many places had shutdown. the market has been grinding higher up 100% at a point where there's now renewed anxiety. you see this steady march has come with a lot of turmoil under the surface over the past month or so. you have one day where growth stocks are leading the next day, cyclicals are reopening. the next day really fast growing ark invest companies there is s

so we considered the spac was the most efficient way to do that. we want a strong partner, knowledgeable in our industry, and with sustainability, so we are delighted to be with sparta . and we are very keen to work with them. matt: what kind of ev charging stations are you going to be deploying? i know you have a history in renewables. you founded an energy management platform, you also worked for one of the biggest hydro energy companies in europe. how are your charging stations going to work? mathieu: what is important is to offer the best service, so we consider the most interesting segment is the charging stations. we began eight years ago, and at that time we did not have the technology. we only had slow charging. but we now have a great expansion, where we have more than 26,000 charging ports. and now we are focusing on rolling out fast and ultrafast charging stations. you can charge your battery in 10 or 15 minutes, that is a great advantage for the future of ev drivers. matt: how long until these are on all european highways? the numbers s

they went public from their spac.n't coming out at 30, 40 or $100 billion valuations. in wheel's up's case, it's a 2 to 3 billion-dollar valuation. sos there a lot more upside but smaller company so more risk. i think for investors, maria, there's a great opportunity in spacs because now they can invest in these hot private companies when they become public companies. like for us, we have rose cliff acquisition corp. we're on the look for a great partner that's a high growth private business that with the help of myself and my team we're going to make a great public business. so i think like ipos that trade up too high, they then the pendulum swings and they trade down. spacs got very hot and then the market cooled off on them but that will change, as these companies are public and put up great earnings as a i expect out of wheel's up, expect the stock prices to trade higher and investors to make money. maria: so mike, where then are you looking in terms of this next growth company that you'd like to help grow in the

i wonder how that plays out with spacs. palantir is going to show us the crypto industry making themselves at home in washington we have more on lobbying efforts that perhaps this week have seemed to bear fruit, right? >> that's right. the infrastructure debate showed the industry is now a force to be reckoned with in washington as the bill is out money and manpower spending and lobbying hit $2.4 million during first half of this year, according to the center for responsive politics that's almost the same amount the industry spent in all of 2020 the biggest player was ripple labs, $550,000 the most it ever spent in one year second was stellar development fund at $330,000 coin base, 160 now for the manpower, crypto enthusiasts are a passionate crowd and they flooded senator's offices with phone calls and emails even gene simmons, gene simmons of kiss, he got involved too tweeting his support of a compromise on irs reporting requirements the industry is enlisting some more traditional washington players, former senator max ba

it's that the prices were too high initially we've had a runaway ipo and spac marketplace in the firstwe're starting to question that the highest prices for most of these companies were right at the open here specifically you've got an online marketplace there is a ton of competitors out there. this is what you call a no moat company. there's nothing around it that's going to protect it. so the users are very unsticky they can go away very, very quickly. and that's what you're seeing here but the real problem remains the high prices. look at that price for that company there. >> gene, i'm curious after a stock like this, bob said if it was mispriced at the highs at what point does the price become more attractive at the lows or does it go back to some of the discussions we've had about value stocks which we were talking about this with tyler last week it's not so much they're overlooked it's that people looked at them and say i'm not going near that? >> i think this one is one that benefited from the hype and the second look is basically the stories that you're hearing is that there's

i recently looked at how many spacs are still looking for deems. 300. >> yes, it's a lot and that gets back to the competition between them these spac-offs as they call them, and is the sponsor really inclined to actually walk away from a deal even though it may be at a valuation that they don't necessarily think is a great one for their underlying holders because they can benefit way down, not from -- down to 4 on the stock price oftentimes, and so does that -- you know, is it the best way to go about finding a deal when your sponsor can benefit, even though you're buying it at ten, which is why we may be getting all these redemptions. >> guys, in faang news, apple is obviously the lead announcing it has resolved a class action lawsuit from u.s. developers over its app store policies. josh lipton has the latest over at the nasdaq. good morning, josh. >> so carl, one big fight for apple now looks to be over apple is announcing that pending official court approval here it has resolved a class action lawsuit from u.s. developers over its app store po

some of these valuations in these spacs and by the way a lot of these spacs they just put companies injunk but a lot of these ipo's some great companies but you are paying $20 for a $10 bill, but i can promise you and this is the good news for your you viewers. in the next 10 years your biggest winners will come from these initial public offerings and there's companies that are quadrupling their sales growth over a year or two, and it's going to be big winners but valuations have to come down. i suspect there's some bearish times to go and once that's over , i think there's going to be some big winners going forward. charles: you know the good news i think the general public knows that why a lot of these ipo's have been duds on arrival people agree they want to buy them cheaper. ryan you've been spot on about value but i want to ask both you guys about this battle happening between cathie wood and michael burry, of course everyone knows cathie wood now. who do you got in this one, who do you think is going to be right? >> i'm going michael burry, no pain no gain, of course that's p ayn

>> my crystal ball says that there are hundreds of spacs with a tremendous amount of capital lookinge very, very active in the marketplace and to the extent that those deals turn out to be successful, it's quite possible that spacs are here to stay. >> all right now let's talk about return to the office, charlie. i know we're kind of doing a strange spift there. by the way, i hear this all the time, a lot of companies never went virtual, i have friends in south carolina and florida and other places they never did go into an office, but for that said, for the people that are still virtual, dates are being pushed back. you're a ceo yourself, by the way, so you're dealing with this and advising clients on it what are we hearing about the return to the office >> i can tell you a little bit about eisneramper's return to the office and how that's impacting us, but first i will just take a moment to tell you about the survey we did of mid-market ceos and that is amongst their key concerns, and their concerns rest around sort of this is two aspects, one, in the new virtual remote hybrid worl

will talk about bitcoin's big rally, with tom farley, who is taking a start-up bullish public via spac we'll talk to him about all of it >>> plus jeff currie will break down the crude comeback and why he thinking oil is heading higher from here >>> miketoli is back, and meg tirrell is here mike, a nice full percent. >> as a matter of fact they've been hovering right at the close 1% level for most of the day clearly follow-through from last week 'rebound. if you look at the one-year chart on the s&p 500, it really shows you there had been diminishing magnitudes and durations of these dips. last fall by got the 10% decline. february/march, somewhere in the area of 5% here you have just this basically persistent up trend that has not given you too much of a chance -- not to discussing this will definitely -- we also have a great rally last monday or so, i saw, from a distance. the equal-weighted version of the russell 1000 has been a laggard. it doesn't mean the s&p has to come down. you see basically flatlining for months now this is a six-month chart. it basically is also underperformin

and in terms of this -- what the spac is -- what the spac is, by democrats and some republicans, what is unfolding in afghanistan and whether it makes it difficult to pus through the spending agenda that biden does have. ian: the country is incredibly divided up and we of january 6. that was a normatively -- was enormously problematic in showing political dysfunctionality in the u.s. and you can still get movement on bipartisanship for infrastructure on the back of that. this is a smaller deal than the average senator member of the house of representatives in kabul than what happened on january 6 for the republic but we are not through this yet. i want to be clear. if we end up in a hostage situation whewre americans -- where americans are caught in the crossfire, where this ends up making headlines for weeks or months the way you did iran in 1979, this will destroy biden's presidency. that's a lot bigger than whether or not we get through the infrastructure money. i don't think that's a base scenario, it is not 50% but it is not 1%. this speech that biden gave almost implied that the

lordstown recently went public via spac.n studios is moving production of its lord of the rings television series out of new zealand into the u.k., aligning with the strategy of investing in production across the u.k. lord of the rings is one of the most expensive tv series ever. the first season cost for hundred $55 million. -- $455 million. coming up, doordash ceo and the demand for food delivery, and talks to buy instacart. what happened? i will ask. this is bloomberg. ♪ emily: ebay giving a lackluster forecast for the quarter, suggesting growth could slow as people get vaccinated and return to pre-pandemic habits like traveling and dining out. the president and ceo told bloomberg that he is competent about the track of the business. take a listen. >> we are on track. if we look at q2, a strong quarter, revenue up 11%, coming in ahead of all expectations, which is great. the back half of the year is on plan. q2 was a great quarter. also, we sold one business, and in total, that is $20 billion of value. the business is doi

speaking of speculative names, look at the post-deal spac index. this is a special purpose acquisition company. after the merger, you coat stock as a group that look like this just this week, app harvest, tattoo chef, even sofi has struggled a bit. the smart wound company, really doing poorly companies not really ready for primetime. to no real net detriment so it does show you how we're trejting away. >> to your earlier point, doom is sometimes not what we get so you were talking about extra credit for calm down, if you also see an up trend there pretty flat on the dow you think we were look at that with maybe more positive eyes that is the numbers are showing up >> all, as we all talked about beforehand, tends to be a weak are month. when the market tends to be strong when seasonally there's an excuse to be weaker i would give it credit for that. however, it doesn't mean august is over. it doesn't mean you lose those seasonal tendencies. right now it looks like the markets are projecting ahead further comp that's equation i think we'ral as we get

i would say the spac market is overvalued. invest in spacs on general will be a losing proposition. >> what about cryptocurrencies, are you a believer? >> i am not a believer in cryptocurrencies. i would say cryptocurrencies are a bubble. i would describe cryptocurrency as a limited supply of nothing. so, to the extent there is more demand than the limited supply, the price would go up. but to the extent the demand falls, the price would go down. there is no intrinsic value to the cryptocurrencies, except that there is a limited amount. >> based on what you said, why wouldn't you put a short on cryptocurrencies? maybe you have. you think that is a good short? >> the reason why we shorted subprime in size, it was asymmetrical. limited duration that trades at a 1% spread of treasuries, so you cannot lose more than the spread and duration. it it defaults, you can make the par amount. in crypto, there is unlimited downside. even though i could be right in the long term, in the short term, as is with bitcoin, i could be wiped out o

reid hoffman involved in that spac business., opened at $11.20 a lot of talk about an ipo land. a lot of push back on prices we're in a quiet period in august always happens in august we didn't end well in the last couple of weeks. it fell apart. seven ipos were postponed. why? because the buyers didn't want to pay the price, they wanted lower price and guys offering it just walked way from the deals essentially. we saw price cuts, companies went public. but dole, weber cut their prices aftermarket is the day after it goes public. you usually get a first day pop in most poiz the question is what happens after that they have been terrible in the last few months losing 8%. the average cnbc buyer that buys an ipo on the first day of trading loses money. that's getting push back we have a whole bunch of companies out there. you see the renaissance ipo, main basket of ipos that's been underperforming the s&p 500, and it's flat this year with the s&p 500 up 18% that's a real warning sign big names coming in the second half of the year

electric truck maker xos begins trading on the nasdaq after a $2 billion spac deal. we will talk with the ceo of dakota semler. challenges returning operations to normal as the delta variant spreads. we will bring you the latest. let's get a quick check on the major averages. we are seeing some gains in the nasdaq after starting the day in the red. the nasdaq up more than 1% on expectations yields will remain low and we will get out of this growth scare in short order. the s&p up .8%. oil continuing its declines and yields going slightly up. still pretty tame going into next week's jackson hole con fab . let's bring in katie cry filled with more. >> i am keeping our eyes on yields. it is pretty interesting to watch but it is hard to reach too much into anything when we are on a summer friday, low trading volume. we are still in that range. what strikes me is how little conviction there feels like behind any move. we have been talking about that bank of america call. 1% range of where we could go. you also have jp morgan and goldman downgrading their year and forecast

raised quite a bit of money way spac deal.approved by shareholders but they don't tell the number here simply as a result of redemptions the agreement and merger satisfied i've heard they might be a size 85% or more, but we don't have a number here. and so they're looking for more money essentially to actually close the deal it was approved by holders that's the other thing you get enormous redemptions but still get approval of the deals which is, seems somewhat odd again i pointed out in merger, historical, merger, we see that as well, or deals i should say record vote. vote in favor then sell your shares that one, seeking additional sources of capital, and they're hoping to actually close it by the 24th of september. the other one, smaller deal. centr i centtriquist good to have an idea what these companies are involved in. i'm focuseds on redemption naught in perspective. only 34.5 million total shares for, in the spac so that's what we're talking about, dot math. over 90. way over 90% saying, nope. want to take our ten buc

and interesting period she didn't think it was a bubble from those markets, i see what's going on in spacnd robinhood and crypto and aspects of crypto like tether. it is a function of price. an invention, price has to matter what has happened to create a bubble not much worse than what we saw with the janices in the world in the late 90s. a lot of parallels i'm over, kathy. >> i know. you said you are cheering her on everything you just laid out you are money manager. you have a fund. put your money where your mouth is and actually short ark? >> i'd like to see something she does do well good for the citizens and society. i am short the tesla position. when you are at 15 times and not investing those ways from those years in 14, 15, 16, 17, 18, 19 you can grow your way out of the problem which is kind of what you look at what's happened. apple, amazon, microsoft and facebook were shorts some of these things were overvalued i wrote a piece in early 2000 going into the tech bubble in march saying they would lose money in 15 years and it would have nothing to do with the start of business. t

the main areas getting weaker k web, china tech, the ark funds, the spacs. those are areas of the market have seen these sorts of rotations throughout the year. the last few weeks and couple months really they're not responding to the upside like they have in the past. and then we -- we all know about the small caps and we've been giving those the benefit of the doubt they've been in a -- a 7, 8-month consolidation. typically those resolved in the direction of the underlying trind, which in this case would be beat to the upside. but if look at the internals of the small caps even as they've gone sideways, internals break down that's typically a sign of distribution in the weak areas of the market remain weak and get weaker it leaves fewer names to do the heavy lifting. we know the names we're talking about. you talk about them every day. >> they continue to do the heavy lifting, right i hear what you are saying as long as those names like apple hits another new high today. i'm presuming you're talking about apple among other names. as long as those stocks ha

. >> not great under 10 bucks, though, right, for a spac deal not great under 10 bucks i think that's >> no. but that's what a lot of these look like. so now it's not a pile of cash about to do a deal anymore, now it's an actual operating company. so i do think that there are natural sellers that come out after a transaction like this and you have to let the stock find a level where the buyers will take those people out and eventually it will happen. >> more scrutiny on spacs as they have noted, as leslie picker has noted and keith who did a spac deal and announced it last week. stephanie link, david in california stephanie, thank you for alettereding me to zoetis. time to sell or hold on? thanks for the question. >> sure. it's up 20% year to date so you've made good money, but i like this category companion animal is a $20 billion totally addressable market it's going to $34 billion by 2028 that's 9% so i like this all this company does is beat and raise and they just did it again. 25 new products are coming down the pike so i think you want to hold on to it. >> all right, thank you.

and i think as you know, spacs are largely a capital structure, and so i think there are going to beat can take advantage of this, and there's going to be a lot of sort of despac entities that might rerate it's going to be a winners versus losers, and as warren buffett says, it's going to be a moment when the tide goes up and we can see who is wearing a bathing suit >> that is one of my favorite buffett quotes as well where do you see the winners and losers what types of companies can be opportunistic here >> you know, i think there's a lot of things that have changed since the start of the pandemic. you know, one is that there are a lot of businesses that have fundamentally drastically reduced cost, and that benefit is going to be decades of re-engineering, over 18 months, they had a chance to take a look at their operations and cut costs. i think a lot of s&p 500 companies fall into that category even in places like leisure and theme parks, you know, like a six flags, these companies have done a great job of really rethinking how they serve and delight customers. so it's not as eas

by the way, this was a spac. why? higher transport, higher labor, hire commodity inflation get used to that troica of pain. >> but that gets back to our long running debate of transitory or not. >> i'm going to give you another side of the trade. let's say you own frito-lay. >> yes, you're pepsi. >> and you're starting to get irritated by utz do you think you don't have the ability to cut price, do whatever you want, make this even more of a -- i am saying that frito-lay has unbelievable scale and they're able to deal with this. they can deal with all three of those but an outfit like utz can't. with a name like utz, it's got to be good. >> so does that mean more of the same or do we feel 19 sort -- >> it's going to be mots. >> more of the same. >> yes get used to it campbell's had it. and i love these guys. i've had them on every quarter because i love the idea that there was a spac that was just -- >> it's a quality chip too it's a quality chip. you know what, i'm going to give you a nice -- a good spac story this m

did want to come back to spacs, guys.his theme i hit on yesterday, enormous amount of shares being redeemed on deals that are closing. shareholders vote in favor but more of the shareholders than not say i'm out of here. i want my 10 bucks two today, gwac with cipher mining 76% of the shares were redeemed. 76%. you had 87.9% of votes cast during the meeting representing about 57% of the outstanding shares as of the record dating voting in favor. deal's going to close, but it's going to close with a lot less cash than they had because 76% of the spac holder said i want my money back. tortoise acquisition 2, with volta industries, that's an ev charging company 96% of the votes cast at the meeting were in favor of approval, but 70% of the shares redeemed 70% said, no, we're out of here. and again, this is having the effect of reducing the minimum cash requirement some of them are below that, and then you need the company that's being required to waive it say we're going to be okay dealing with 70% less cash, at least from th

that's something i'm paying attention to, keeping an eye on valuation and seeing how spac's influencehose. haidi: always great to have you with us. we do want to make a clarification -- after pay reported a net loss for the full year of 156.3 million. there were hopes they would report a profit for the first time in fiscal 2021, but they haven't done that, coming through with a net loss of 150 $6.3 million for the full year fiscal 2021. lots more to come on daybreak australia. this is bloomberg. ♪ haidi: a quick check of the latest business flash headline -- goldman sachs is requiring employees to wear masks to enter its u.s. offices. the mask mandate starts on wednesday and people who are not fully vaccinated will have to work from home. all six u.s. banking giants have imposed measures to require employees to get shots or to wear masks inside buildings. mitsubishi is joining its rivals of increasing pay for junior bankers in the u.s. as competition for entry-level work heats up. japan's biggest bank says pay hikes are making it harder to recruit new staff. several wall street banks

why the spac? i'm curious on how the whole process happened.alue and you clearly like what is happening with draftkings, why not go direct? tilman: this all happened so quick. everybody forgets that this was not a huge industry. everybody has to remember where even draftkings was a year and a half ago, two years ago as a company. and where we were as a company a year and a half ago, two years ago. we never had talks. we did not know where the industry was going. not draftkings, not us. this is something new. alix: what about something new, the delta variant? if we had this conversation months ago, it would have been different, but how are you dealing with the delta variant at your businesses, in terms of vaccinations, return to office, mask mandates? how are you feeling about stuff? tilman: this is unbelievable. remember, we are only on d for delta, and there are a lot of letters in the alphabet. today, our offices operating. our industry is operating, the casinos. and employees are wearing masks. louisiana and nevada are making customers wear

. >>> shares of iron source are higher on record revenues, its first report since competing a spac mergerjune. its part of the plumbing gaming industry with 89 top games, including a popular one you're seeing there candy crush saga could more regulation of the app market lead to a more open environment and help give iron source a possible business boost? i guess you just heard that interview we had with senators blackburn and blumenthal about their proposed regulation of the app economy. i wonder as the ceo of a person who is neck deep in this app economy, do you feel as though apple and google need that kind of regulation? and will it help your app developers >> thanks for having me. i couldn't hear all the interviews and i haven't read it yet. we're a big platform serve all the constituents of the app economy. people could choose what firms they want to use, how and to what extent. without knowing all the details and specifics of the app. >> that all sounds great but i guess maybe there are some questions for people who weren't exactly familiar with iron source and the overall business