and i don't think if that was the ftc's strategy they would be negotiating with herbalife right now.make sense. the whole thing is have we taken the herbalife as an illegal pyramid scheme thesis off the table. we have known forever that it's not. now it appears that the government knows it's not. >> i don't know. all we know, tim, to be frank is that there's no, or at least reports of late have said that there is not enough from a criminal standpoint from the investigations that have been going on but i think it remains a question. >> that's not necessarily true because the way these things work is that the civil case has a much lower burden of proof. they like to get the civil case done first. win that. and then take it to the criminal case in a lot of instances. >> all i'm saying is that it remains to be seen as to whether the ftc is prepared to do anything such as shutting this company down at this point. >> i totally days agree with that. i don't think you negotiate a settlement and a fine if you're still thinking well maybe we should shut them down. but, you know, look it's all

prospect or long term, they can stil demolish the stockespecial if they now gn agasthe ock like with herbalife. was ting the company and buying bac on the other se oft, don't undestimate thount of damage the shorts can do. although remember, the bt protection against these rates short e stock. and at and that mea theha to pay thdividends to the rea owners. that's terrific derrent from those pernicious in the way they go about shorting. when you s a sto with big dind 50 tacked by shorts anvind igoing higher, a terrific place to be, pecially if ty're snaing up stock insideto insider buying plus y sht interest cqual raging buy as u avoid situns where the shts are determineto question the stoc any cost. li hbalife. let's go t lego to herb in flora. herb? >> cler: jim, grt to talk to u. m on i'm on aioerfoller fthpast few years. wish i g onboard a lot soone >> you're very kind. toh days, i like that, though. you suort us, ank you. whats going ? caller: i'm rently retired. i ved up well over my lifetime and i've ld at the longevity of my ofsag managengs well, i'm in good shape. >> goo >> caller: my

term, they can still demolish the stock, especially if they now campaign against the stock like with herbalife. he was taking on the company and on the other side of it, don't underestimate the amount of damage the shorts can do. although remember, the best protection against these rates is offered from stocks that pay good solid dividends, short sellers have to borrow stock to short the stock. and that means they have to pay the dividends to the real owners. that's a terrific deterrent from those pernicious in the way they go about shorting. when you see a stock with a big dividend 5:00 tacked by shorts and dividend is going higher, a terrific place to be, especially if they're snapping up stocks inside, too. insider buying plus heavy short interest can equal raging buy as long as you avoid situations where the shorts are determined to question the stock at any cost. like herbalife. let's go to herb in florida. herb? >> caller: jim, great to talk to you. i'm on action alert follower for the past few years. wish i got onboard a lot sooner. >> you're very kind. tough days, i like that, though.

herbalife. companies thatse have come up against hedge fund magnets, in this case, bill ackman. he has called this eight pyramid scheme, has a billion dollars short bet against them. the've been in talks with might end up resolving the investigation. herbalife cautions that this could still have a material effect on the company depending on the outcome of these talks. there's a lot of optimism surrounding that announcement. , those at jcpenney today shares rising after the company's profit and sales topping estimates, they are up by 15%. the ceo's attempt to turn around jcpenney are starting to bear some fruit. same-store sales up 4.1% for the quarter. we are also looking at craft kinds come another stock that has been gaining in the wake of earnings. heinz.kraft carol: coming up, silicon valley versus the government. the continuing battle over privacy. how this case will play out. this is bloomberg markets. ♪ tracy: we do have breaking news from credit squeeze. -- credit suisse. overhaul that is chief executive officer has been working on -- this is according to people with knowledge of the matter. we will continue to monitor that for you. a busy couple of weeks for apple and things do no

let's get straight to the bloomberg business flash with caroline hyde. shares of herbalifeended trading. they are in talks to regulate an investigation over whether it is a pyramid scheme. the probe began after allegations from billionaire bill ackman, who said he was shorting herbalife. grew -- spending by free -- spending by french businesses picked up in the last three months of the year. housing, consumer confidence, and the pound are all taking a hit from concerned the u.k. will leave the european union. say the home track on referendum will curb housing sales. a measure of british consumer confidence says it has fallen to the lowest level in three years. the pound had its worst week since 2009. tom: caroline hyde, thank you so much. now we digress. megan murphy is in washington, damage from last night possible republican debate. were you surprised by the level of shout fest last night? was surprised they let it extend to that, because the strategy going in for rubio and trump.s to hit there were points you could not hear what anyone was saying. i think in some respect

we are watching herbalife, coming up with earnings after the close yesterday beating estimates, it did its full-year earnings forecast. the stock is really up on comments about the federal trade commission. it is havingaid talks with the ftc and those talks could still result in some kind of material impact on the company, but there appears to be optimism that it would be a positive outcome. has a long term dollars short bet against the company. he believes the stock is worth zero. and that the stock is a pyramid scheme. bet billion-dollar short against the company. we are watching jcpenney after that company came out with profit and sales that top estimates. in sharp contrast to the other department store operators, like macy's. .ame-store sales up 4.1% jcpenney coming from a lower has been trying to turn it around and looks to be making some progress. in its second report as a combined public we traded entity in the quarterly earnings topping estimates, revenue falling 3%, but still ahead of estimates as the company is selling more of its core offerings like ketchup. those shares up

and herbalife having a positive day, seeing a deal with the ftc.? not good news. a lot to cover. the bell is rigging. we are taking a live shot of the nasdaq and the nicaea and we're taking it down with some special guests. we are asking question, does this signal a time to get out, or a time to get on board? joining us is the chief market strategist at amy capital. i want to bring in global head of credit of pimco. mark, let's start with you. when you look at the amount of all in angel's the start of january, totaling $51 billion, what does this tell us about the credit market? typing without, or time to move in? mark: we think it is time to move. or saveook at cash methods around the world, they are yielding zero, or even negative. 75% of japan and german government bond market yields negative yields. equities are facing the headwinds of low growth. we think bonds, specifically corporate bonds, can earn doctorate 8% -- 4% to 8%. be actuallyse will quite manageable. overall the inflows into credit will offset this risk. specifically, investors are

just today when herbalife, a company he's been short for a long time because he thinks it's a pyramid scheme, reported a with the ftc. this stock shot up 9 points or 20% on that news. you can bet that in this rapacious world if valeant gets hit on earnings, driving ackman's position down, you're going to hear chatter that back his short on herbalife. that's right. bad news for valeant may be more good news for herbalife. how twisted is that? we've been fixated on the stocks of companies that offer value because it's been such a good recipe for success so far in 2016. and we get results from not one but two fabulous plays on value on tuesday. dollar tree and ross stores. last summer dollar tree bought family dollar. frankly at first it was a little rocky. that merger, i wasn't so sure. but not anymore. i think now this is a totally winning combination and i expect a very good quarter. that will be another one where if you got a chance to be able to buy it, say, on the stock buy some. now, i've got to tell you, ross buys all that closeout merchandise from hurting department stores. and while don't like it as m

watch shares of herbalife company reporting better than fourth quarter results. the company says it's now in talks withrade commission over the probe of its business practices related to accusations made by a hedge fund manager. the outcome of those talks remains uncertain. >> tweeting about that yesterday. weren't you? >> buried in the 10-k. >> you were tweeting it was up a lot. >> it was up after that became known. >> it was up and sort of like the understood thing is ackman is losing his butt again. that was your -- that was the tone. >> i did. >> my tone is that the stock was up. >> the point is -- >> that's what i read. it was up 40% in 2014. giving it all back and then some. >> exactly. >> he's come upon tougher times. >> past performance, don't they put -- >> on every fund. calling recessions, calling market crashes, all of those things. nfl teams, past performance is no guarantee of future -- that's why they have to play the game, scott. sorry. that was not in your twitter -- >> pointing out -- >> that wasn't there? >> that's how i took it. sorry. >> do we cue the music, maestro. >> you watch "