tv Bloomberg Markets Balance of Power Bloomberg March 29, 2019 12:00pm-1:00pm EDT
european trading day. from london i'm guy johnson. vonnie: from new york i'm vonnie quinn. " on is "the european close european mark -- on bloomberg markets. guy: equities in focus but also the foreign-exchange markets a focus as well. that is probably vonnie's board we are looking at. the pound is under pressure. it has been a solid first-quarter for european stocks, up on average around 10%. there is the cable rate, trading softer. there's a large crowd gathered in westminster outside the houses of parliament. this is a pro brexit crowd. there are significant numbers of police in attendance. keep an eye on that. the stoxx 600 positive. it has been a positive start to the year in terms of the last quarter. european stocks outperforming by the united states and china. the scandinavian bank continues to be in focus.
talking about the fact it will have an internal investigation with authorities. the u.s. is pushing the scandinavian bank. vonnie: it is getting more urgent by the hour in london. we will be keeping an eye on that situation after a third vote from theresa may was defeated today. right now we're going into months end. the s&p 500 above 2800. helped along by the likes of , that would support star word and wellington. their efforts to have that deal go ahead. crude oil coming in above $60 a barrel and wells fargo down 1.8% , just pointing that out after we got word tim sloan is leaving. turn our attention to what has been happening with lyft. we have just seen the pricing of that take place and it is now
at $85 and change. let's get the details. joins us in london. that is a decent pop. is that a big enough pop? emma: that is a good question. it was priced at $72 a share. it finally started trading just about 20 minutes ago. it has been well above that $72. we heard from a couple analysts, dan ives saying it is a lightning stock. the proof will be in the next few weeks or months, especially when uber starts to trade. that is due to happen on the new york stock exchange in april. also hearing from another analyst, the head of lyft going public, saying fair value would be between $75 and $90 a share.
it has not reached $90 but people will be watching closely over the next few weeks. vonnie: the delay before trading began the lies how much -- belies how much interest there was. this is the barometer for coming tech ipos. emma: that is true and that is another thing dan ives has said in the note he put out. he says this will be good news for uber which we mentioned is due to list next month. a number of other tech companies due to list or said they plan to go public this year. technology,lack they will be taking a big positives away from what we are seeing given the level of investor interest. the big test will be for uber and one of the big positives for lyft will be a got out ahead of uber by going public now. uber much anger. according to -- much bigger.
a big difference. a big difference between the companies when it comes to their international reach. they are both big in the u.s. but it is uber that is the more international company. earlier this week you saw them by their arrival in the middle east. mandy-- guy: let's bring into the conversation. that is a pretty good start. it is not the top end of the rate analysts were expecting but it is certainly up there. what are the implications of such a strong start? show thek it goes to demand is there for a company like lyft and it bodes well for the entire ipo pipeline that is out there, be it uber or pinterest or slack. there is appetite for ride-hailing companies that have built their businesses around mobility. lift on one of the
plays a mobility. if you want to bet that everything will be done around smartphones, this is one way to play transportation. vonnie: could price discovery work well here? there are a lot of challenges and headwinds coming down the pike. >> i think so. for the most part the process felt like it was seamless and i think it was expected for an ipo like this, which was oversubscribed. you will not see a 20% pop. for the most part, it was seamless. guy: more stock going out the door than originally anticipated. is this a cashing out? emma: not quite. we know the founders are still holding a great proportion of lyft shares. they will still hold a great deal of the voting shares. still less than 50%.
a lot of the analysts have said that is a good win. it is going to be found -- they called it a cultural positive when it comes to lyft. ,t is about 11% of the company 32.5 million shares they sold during this public offering. it is for some but perhaps not totally. vonnie: the founders were extraordinary pleased. let me ask you about margins. narrow margins will get narrower. his they'll the outlook -- is that the outlook? what about losses? >> no one has address that part. from the conversations we have heard the focus seems to be on top line. from what we have seen with the are a, insurance costs big drag on these companies, so the payment costs, the background check costs. if the high valuations have to continue, you want to see some
sort of effort around raising the margins and if they want to be seen as a tech company, then you better increase your margins to around 70% to 75%. lyft now has the currency to spend. how will they spend it? >> initially they will focus more on expansion in the u.s. market. they have grown their market share from 20% to 40% in the last two years. focused, iare native feel they will focus on the u.s. and canada markets for now and grow their market share further to about 50% over the next two to three years. uber will try to dent this enthusiasm and success and the side relief by lyft investors. what can uber do? it was the first out there but now will be second to market. ofi think lyft has done uber
failure by engaging the appetite for the ride-hailing companies will try tond uber paint the narrative of the global company that has got a much more diversified business. they're very successful in food delivery. they are ahead on the economists side. they can paint a bigger narrative around transportation, ride-hailing, and establishing a platform for transportation which has a lot of room to grow. guy: as we watch the share price now, where $85.22 does the stock need to be in a year to fulfill the promise many people are buying into today. you are going to get a pop on day one but you do not want to be trading significantly below your ipo price. we are well above it now. what covers the more long-term expectations?
emma: a number of analysts have said that a fair value is $75 to $95. you wanted somewhere within that range. another analyst has said that some -- that anything in the 60's is somewhat bearish. we have seen high-profile tech companies go public and do extremely well in the first few days and then fall down further along. if you are a lyft, you want to be growing on what you are seeing today. you do not want to be falling below the ipo pricing of $72 a share. your try to keep it within the 70's and into the 80's. vonnie: how does lyft get the margins to 75%? >> so far, nothing we have heard indicate their focus is on margins. at the end of the day, at the scale they are operating, $2 billion in revenue and uber is
five times bigger, why aren't their margins closer to the long-term potential which is 70%. i do not think anybody has given an explanation yet. i think it will be a tall order. they have laid out their long-term margins and gross margins of 70%. it remains to be seen what levers you can pull together. guy: is technology the biggest threat to this company? >> we are going through a transport revolution. if you believe in mobility delivered by the smartphone, then this is a company you want to look at. nevertheless, the landscape is changing quickly. ai placing to be a part of that. how does lyft make sure is at the forefront of that? >> one of the things we try to compare tech companies with is the amount of data they have. with lyft and over, they have
large amounts of data around the rides, around the drivers. i mentioned about the high insurance costs. one of the things they can do is leverage the data they have to bring down those insurance cost, to better screen their drivers and to avoid accidents and that kind of stuff. advantage and that helps their scale and network effects. it will take a while to leverage the data and implement it on the operational side. vonnie: how much do we know about what drivers got out of this, what drivers were able to purchase and of retail got a reaction? >> they given out cash bonuses to drivers and they are allowing drivers to participate on the retail side as well. so far, they have given out cash as a part of the ipo and that
can be used to buy those stocks. guy: we will leave it there. thank you very much indeed. joininggs emma chandra me in london. vonnie: turning back to brexit, parliament hand theresa may another defeat. we welcome the president of the pearson commission for international economics. it was supposed to be exit date and instead we are in this morass. what happens next? a general election? would that help anything? >> what is being revealed is the britishtal split in society, and the process is being destroyed by the split in the british and tory party. no exit is where we are. i think a general election is not likely. i think the second vote is now possible because of the protests in the petition that was signed in the millions, where as a week
ago i was putting a low probability on that. a one thirdhave chance of the no deal brexit and a two thirds chance of a passage of something called doorway plus or a second referendum. vonnie: the problem with norway plus is britain would still have to abide by most of the rules and would not get much of a say in anything, although it would provide trade relief. the problem with the second referendum is nothing has been defined in the three years since people voted for brexit. what we just end up with the same result? plus,in terms of norway it is potentially better than that. you could argue if you take seriously the first referendum, which they should not, that if you do it is what the unicorn people wished for. it is getting rid of your european passports, getting root of all of the flags with gold stars and obligations toward a
closer european union but economic access. it is not lack of sovereignty. access tou give up the rules, but if you want sovereignty you have to let others have sovereignty. in terms of the second vote, i think things have changed the polling data suggest there is anywhere from a 4% 8% margin in favor of remain. that is a big swing from before. there has been a lot more information may. when it comes down to them deciding on a reasonable pair of options to choose from in the referendum question as opposed to last time, where nothing was specified. guy: how is this going to work? there a big demonstration in westminster. it'll be interesting to see how it develops. these are brexiteers. they are not happy. they were expecting to leave the
european union today. this is a deeply divided country. as we go through the next phase of the country, will the fabric hold together? adam: i don't know. i would like to think the rule of law will hold. there been various threats, veiled and not so veiled by the kinds of people who are congregating in westminster that with there will be violence, that there will be real anti-democratic actions by those who feel frustrated. i hope the british leadership, that the british government can come together to put that down. outside of that, it is a divided society on this issue. it is amazing that this issue creates such deep divisions and i think, as with issues in the horse fors a stopping a whole bunch of issues. rural or small city people outside of london and outside of scotland and wales opposing the
others and it is people who think they're white opposing people who look different. that lines up with brexit, but it lines up with a lot of other unfortunate stuff too. guy: it is hard to tease apart what is happening in the global on markets at the moment. clearly a lot of hikes that were on the table have been taken off the table and that applies to the bank of england. how much of the repricing of the bank that has happened over the last couple of weeks do you think is down to the global narrative and how much is down to what is happening in the u.k.? adam: that is a good question. with the lousy data we have had in the u.s. but more importantly the recognition in the u.s. and the euro area we are in a low trend growth, a low productivity growth world, that has taken a lot of the hikes off the table. there at theing bank of england monetary policy committee, i would be on hold for the combination of economic and political uncertainty.
there is a lot of idiosyncratic britain specific stuff. i think the bank of england was right to of said that depending on how brexit goes, the next move could be a hike or a cut. it is straightforward. if they get the good news brexit , meaning some kind of clear resolution, then it is not a no deal, then i think a hike remains possible for the u.k. vonnie: what is europe supposed to do? what would be the correct adult response to this? adam: you are right to think in terms of adult responses and give credit where credit is due. the european leadership coordinated by donald tusk and michel barnier have done a good job. they have kept their priorities. i think what europe should do is hold to exactly what they told theresa may a couple weeks ago. happy to have you come back in. we areo have you say going to have a longer extension and make up our minds, but only
if you are putting in place a second referendum, a general election, something that shows you are going to make a decision, and then you in the u.k. have to participate in the european parliament elections. i think that is a perfectly sensible line for the eu to take. i think they will stick with it. , president ofosen pearson institute for international economics. you're staying with us. a lot more to discuss. guy: let's get back to lyft's first day of training. here with the details is abigail doolittle. lyft well above the $72 ipo price. at this point, a $25 billion market cap. investors wanting in. a strong start. the first hour of trading for lyft. as for the other markets, let's
take a look at the broader markets. a bit of a risk rally with the s&p 500 higher by .3%. china put up its best day in a month. also have oil trading higher, bonds lower. we have a strongest asset on the day. that is true for the quarter. let's take a look at a quarterly chart for the s&p 500. we will see gains of 12.6%. heading to its best quarter since 2009. that follows the worst fourth quarter since 2011. lots of volatility. it will be interesting to see what the second quarter brings. huge gains. coty up nearly 75%. ja be's offer to buy up 150 million shares has lifted shares. chipotle mexican grill up 53%. we also have xerox trading sharply and the stoxx 600, that
index on pace for its best quarter since 2016. if we going to the bloomberg we can see the top movers and the laggards on the quarter. this is the mrr function on the stoxx 600. up top, ocado group. the deal with holes seeming to help those shares. we also have the light of sims trading higher. swedbank the second-worst performer for the stoxx 600 on that money laundering scandal. guy: not having a great day, all of the nordic banks. abigail, thank you very much. the fed remains absolutely in focus. mixed data out of the united states. the pce back on deck, the ones that focused on. bloomberg caught up with dallas fed president robert kaplan. he waited on the yield curve. >> an inverted curve of some duration,and/or some
i think, is significant and something i will watch. we do not have either yet. robert kaplan speaking to bloomberg earlier. we are speaking to adam posen. adam, you were about this inverted curve. are we going to get a recession? adam: it is possible, but no. i'm more worried about the data we have had. it is striking how much the wide range data indicators turned down over last six to eight weeks in the u.s. without an obvious cause. it has crossed such a wide range of things. i do not think that raises the recession outlook above 20% or 25%, which is not that much higher than any given year. i think the important thing is you mentioned pce. inflation is going down at the same time wages are going up. as chair powell and other fomc members make clear, that is a
desirable outcome. we are stuck in this issue of what is our star, what is trend growth, why is there no inflation? the inverted yield curve, i agree with president kaplan, with all that is going on in bond markets, it is not a real inversion of size and duration i would not put much weight on it. guy: the balance sheet may be playing a factor. aredata out of europe probably even worse at the moment than anywhere else we are watching. the ecb finds itself in a situation where it is already having to turn tail in terms of some of the policies it would've liked to have put in place. we are now starting to debate the issue of negative rates and the impact it is having on the transmission mechanism. has the ecb made a mistake not hearing negative rates like the s&p has done and is now a time to fix that? adam: i think it is legitimate debate. it is not clearly disastrously wrong or clearly right. you move up rates, you try this
tiering thing, i think it will have a small positive effect. many issues in the european banking sector with probability have to do with lack of concentration, lack of fundamental profitability, lack of cross-border merger, think of deutsche bank and commerzbank, think of the italian banks. those are the things i think are the issue. i can respect if people in the ecb want to think about messing with the negative rate, but i would not put up much hope that will solve your problems. vonnie: the vice chair of the fed -- the fed looked a negative rates and decided that is not something that would help in the u.s. case. what run rates are we at for u.s. growth? adam: the vice chair has it right. the u.s. is fundamentally different than europe and we are much less dependent on bank lending and despite the mishaps
and mistakes, the banking system is more cleaned up than the european has been, even though they have made progress. the run rate for the u.s. economy is probably around 2% real year-over-year, which is probably around or a little above potential growth. if we do start seeing unemployment rise or wages take off, and you start wondering if we are front out of room. i think as the vice chair and chair powell have argued, i think you can afford to take the risk. run the economy as hot as you can. vonnie: do you see anything fiscal helping the u.s. economy in the next 12 months? do you see the president getting down to brass tacks or companies coming to terms with whatever trade deal gets made and spending again? adam: let me take that in reverse order. they are independent facts. in terms of trade deals, there will be something announced between china and the u.s..
i think it will resolve little and people from both parties are going to attack the president as being soft on china. not saying that is justified, but that is what will happen. i do not think there will be any ongoing relief rally on the trade side. on the fiscal side it is different. i've been out of consensus calling for over a year. calling in the forecast sense, not asking for the idea there would be some fiscal expansion in 2020. there would be an infrastructure package. i think the green new deal, for all of the senate shenanigans, has substance people could get around. i think you could crowd in usefully. i think if you look at the history of u.s. fiscal policy for the last 45 years, almost never has congress allowed such a sharp reversal of fiscal policy as is currently programmed into the budget for 2020.
has congress never allowed such negative grows approval policies as it has allowed this past year. i would be surprised if congress does not do something on infrastructure to shop and -- to soften. vonnie: adam posen, president of the peterson institute for international economics. thank you. guy: we have around three minutes to go before the end of the quarter in europe. the end of the trading session is approaching. aropean stocks -- it has been solid quarter. we will give you details next. this is bloomberg. ♪
up by .70%. we are seeing a positive story when it comes to the corner. let me give you numbers. let me give you an idea of what is going on. what have we done? the ftse 100 to the good. the dax better than that. the standout performer in europe have been the cac 40 in paris. it has done well this time around. let's break the stoxx 600 down to give you an idea of what is going on. in terms of the out performers, retail, food and beverage, and personal household and goods are the three best sectors. retail is up over 20%. the worst performing sector is the telecom sector. the real story of this quarter has been the underperformance we have seen from the european banks. let's move this on and see we can show you what the individual names look like in terms of the performance. acardo group up 72%.
this is the retail technology company. we are hearing it has done a number of deals around the world. retail has done well. another company of germany trading strongly. on the downside, it has been the banks. swedbank has come down strongly. the big underperformer has been the large european travel company. 10% of its fleet, and it has around 150 aircraft, they are 737 max 8. the company came out and said what they have been saying all rally -- what they are seeing is a 200 million pound charge as a result of that. retail is done well, banks have not. the big performer this quarter has been the story coming out of the travel sector. solid session today, adding to the strong retail performance. once again, another banking story in focus. bank thinks it will have
a internal investigation. that is look at the european close. vonnie: in the u.s. we are trying to finishrter on a positive note. the s&p 500 firmly above 2800, as are the nasdaq and the dow. caterpillar up more than 2%. the dollar index stronger in general although today it is floating around, having a rocky day on brexit -- sterling having a rocky day on brexit. crude oil $60 a barrel. the turkish lira, another day of weakness for that currency. do not forget elections are sunday in turkey. let's look at global macro movers. a green day across the board for equities. in terms of currencies, the ruble is a weak one but the rand is coming back. a little bit of contagion from
turkey and central banks being more dovish. the canadian dollar is stronger and that is probably an oil story. let's see if we can have a look at some of the commodities on move day. for that we will have to get your own gmm. guy: let's stick with the market theme. our question of the day is which assets will outperform in the next quarter? joining us is bloomberg sarah ponczek from the united states and christina in london. let me start with you. european markets are finished. the quarter is over. we are now looking to figure out where will you will reallocate capital for the next quarter. how useful of the guide has this quarter we've just been through, which has been incredibly positive, you can wrap up your books and say i'm done for the year, what will guidance be going forward? >> it depends on themes that will last from the first quarter
through the rest of the year. while it is a positive story in europe you did highlight there is one problem child in europe which is european banks and that has to do with the macro picture in europe owing to the european central bank still staying accommodative and yields in germany turning negative over the past week. these are not great stories for banks as a whole on the broad picture. then you have these interesting credit stories going on, individual banks. this is one theme that may hold back your throughout the rest of the year, even though we may see more of a recovery in cyclical spots. this is a structural story that will go on for the rest of 2019. guy: we have had an great quarter. the numbers look fantastic. if you are sending out the top sheet dear investors, are you going to be to the right hand or the left-hand side of your benchmark. i get the sense a lot of
portfolio managers are behind their benchmarks this time around. this is an on loved rally -- this is an unlocked rally. kristine: i think it has to do with what the big catalysts will be. earlier we were taking stock of the big drivers, central banks. we got more definitive signals from the fed and we saw a big wave of dovishness in central banks going forward. i think people were not prepared for that and now it is taking stock of that and looking at the assets that will benefit the most. these are the highly yielding assets. we have seen a lot of love for credits. emerging markets in asia, good stories there. these are the assets people might want to take a look at into the second quarter now that we have more clarity in terms of the macro picture, particularly when it comes to central banks are still arguably one of the biggest drivers of market moves.
, so mucharah anticipation for the lyft ipo. it is up 15%. lots of players getting involved, several hours of anticipation. how much did that impact sentiment? market wise it can only have a certain amount of impact but we are finishing in the green? sarah: an interesting point. clearly lyft is having a strong start. it will not be included in any indices but it will be considered a tech company even though it is the first of its kind to come to market being more a transportation tech company for ridesharing. it will largely be seen as an indication for risk. investors are willing to get into a new company, to get into a company like lyft that does not have a track record. it does show there is still appetite to be in risk right now. even if you look at tech, tech was the best performing sector in global markets for the first
quarter. it was strong the first half of the second half, even when we saw shift to a more risk off deal after that fed meeting and more of that dovish shift. this could be a good indicator people are willing to keep going. vonnie: on the final day of the quarter we are getting some resolution to the mac trades and been playing out, including the homebuilders, the retailer down 4% giving back some of its gain. dow/dupont is lower. the one catching my eye is celgene. when we are thinking about health care there semi-macro policy indicators. health care has been up this quarter, -- has been enough this quarter when it was one of the best performers last year in the fourth quarter. you have to take into account the micro, but as we get closer to the 2020 election, i'm
already starting to hear investors bring it up more and i'm sure as we get further into the year and start hearing more about the run-up to the election , it is something we will hear a lot about. guy: let's highlight the gap between europe and the united states. i cannot remember the last time we had a big ipo that matches that kind of scale. it does not seem to be happening at the moment. below that, money has flowed into europe. i am wondering what people see in europe. you do not have the razzmatazz of a big ipo market. not much growth. valuations are cheap but they could get cheaper. what is the attraction of europe going forward for the rest of the year. kristine: one thing europe has is the argument for dividend yields. yup a lot of dividend focused stocks. the idea that it cannot be a safety play. arguably, there are risks on the horizon that can boost that appeal of europe moving forward.
we have the second quarter brexit risks, we have european parliament elections, and uncertainty on policy as well. there is that argument where high dividend stocks in europe should do well. there has been a long-standing argument and we have not seen that drive in exodus in the european markets. it is one of these go to stories that if nothing else, something european stocks can fall back on. vonnie: go ahead. guy: i'm curious to get sarah's take. everyone is obsessed with lyft in united states and they are talking about it over here. for a moment the growth story is something that feels like it happens to other people, not europeans. sarah: even in the u.s. you think about lyft coming to market and we see the market cap continuing to climb and you
think about uber, which is said to go public next month at a valuation that could be as high as $120 billion. there is plenty of growth but a lot of the growth is happening in the private market. this is becoming something of a concern. people are asking themselves, you want to get into these companies, you want a piece of of the is the majority growth trajectory in the past. how much room to these companies have to run? you have to take into account the other side of the equation. people are asking to these capital markets tell these companies you need to get out this year because we are almost coming to an end of this cycle. so many unicorn companies in the u.s. are going public. that shows that deep down in the underlying depths of these conversations, maybe there is concern that if you do not get out now, it will be a long wait until you're able to once again. thanks to all of you for
wonderful panel. that is bloomberg sarah fonseca in new york city -- sarah ponczek in new york city and kristine aquino in london. guy: let's talk about the turkish lira. folks are bracing for the results of turkey's elections sunday. this follows a week of turmoil that has rattled faith in the nation's ability to manage markets. by oure we are joined reporter. we get to the election monday morning. maybe oregon -- maybe erdogan wins and gets the result he is hoping for an things start to relax in terms of liquidity story in the offshore lira market. if i'm a manager and i've had money locked up, what is the first thing i will do monday morning? >> you would relax and you would stay in for a short-term.
on a one-month horizon or a two-month horizon, this problem will come back. it is not going to go away. what traders are looking for our off, that erdogan will lay he will not pursue the investigations against banks and so on. that is fine. it has to be credible and predictable and it has to be calming to the investors. that is not going to happen. what will be the result? -- theill be problems broader markets are affected. this currency remains vulnerable beyond the elections. elections are one event. as far as the squeeze we saw in the money market is concern, that is probably going to go
away because it was meant for the election. predictabilitys is in question. if you are our portfolio manager , you would probably have much less confidence in staying invested over the medium-term then two weeks ago. vonnie: does the central bank have any options in this scenario? obviously the president is heavy-handed with the central bank these days. >> the central bank faces two problems. one is the heavy handedness of the president. the other is how much impact the policy can have in this economy which is rapidly dollarizing. policy of growth in any costs has pushed people to hold dollars. that means the federal policy is more important than the central bank of turkey policy.
pretty much the central bank governors hands are tied, even if they raise rates. that is not going to -- it is a core issue of dollarizing. -- credibility of the market that is what the problem is. i do not think there is a lot of potential to step in and fix this problem. guy: we will leave it there. thank you very much indeed. vonnie: let's get back to brexit and how it could affect europe's financial industry. bloomberg is taking a look at some of the key areas of concern. take a look. let's look at three potential hiccups the financial system could face from a disorderly brexit. first, money managers based in the eu could be blocked from using exchanges in london. the plan was unveiled just this month and has lobbies pleading with the eu to reconsider and
for the u.k. not to retaliate. second, while contract between the u.k. and eu traders remain valid, lawyers and investors are still scrambling to work out how they will be serviced. things have also been undergoing the cumbersome process of re-papering, switching contracts to new eu entities. finally a large volume of business in the european payment sector is handled in the u.k.. those firms will lose the ability to do business in the block after brexit. authorities are telling debt eu authorities are trying companies to hurry up with their contingency plans. these cause financial whatevers to -- happens, brexit could set the tone for europe's financial landscape for years to come. hard to gauge exactly what
kind of outcome we will end up with an united kingdom. let's wrap the session up. this is where we have settled. a little bit of a dip lower for the markets but not a substantial one. a positive session for the ftse, dax, and the cac 40. plenty of coverage coming up. continuing on bloomberg with what is happening with the brexit story. do not forget to tune in to bloomberg, the cable show taking place at the top of the next hour. will be live on dab digital radio in the london area and keeping an eye on westminster this evening. this is bloomberg.
vonnie quinn. breaking news. politico is reporting linda mcmahon is going to step down as head of the fda, the small business administration. it could happen as early as today. according to politico she would return to the private sector. linda mcmahon has been talked about as a potential replacement if there ever were to be a replacement needed for commerce secretary wilbur ross. we'll leave that out there. what we know, according to politico is that federal business administration had linda mcmahon is said to be stepping down to return to the private sector. time for our stock of the hour, it is lyft. joining us is taylor riggs. taylor: i want to talk you through some of the fundamentals of the company. about the private financing, i want to take a look at their valuation. they've increased about tenfold from $2.5 billion in 2015, now
you're looking at almost $25 billion. just look that they are open up trading in the last few hours, the first trade from the ipo was up 20% and that is doing very well, but they are only behind alibaba which was up 36% and snap which was up 41%. like you said, very good. let me walk you through some of the numbers. we do know that given demand they had gotten a big boost, now , bigng at $72 as an ipo valuation thereof over $20 billion. a price per sales multiple on par with netflix but above other companies like spotify in grubhub. as you look at lift by the numbers, we know $8 billion in bookings in 2018, that is less the money consumers spent annually on private transportation. lyft has also passed the $1
billion right market. none of these numbers matter unless you take a look at how they're going to monetize that. that is topping $36. the good news is it slowly returns to growth in the latest quarter. that will be after they started declining in terms of year-over-year growth from the second quarter of 2017. a lot of numbers here and you have to know is you go down the income statement, they are not profitable yet. last year they lost $1 billion. the key in what could weigh on the valuation is getting the cash flow positive and trying to get into profitability. was that enough or should i keep going? [laughter] guy: i am definitely taking notes. it is interesting what you say that is behind alibaba and snap. you look at the different stories generated by snapped and alley,. -- and alibaba. alibaba has tripled, snap on the downside. taylor: lyft has a more
favorable image then uber does. we know lyft has increased their market share at 39%. uber's market share has declined. analysts looking to be on par with uber's market share by 2021. vonnie: ok. taylor, thank you. taylor: i will get through. theie: lyft our stock of hour. this is bloomberg. ♪ so with xfinity mobile
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>> today we are talking about cryptocurrencies and blockchain funds. the blue bar shows how hedge funds trade around blockchain companies. the red line is how a basket of cryptocurrencies have been trading or the past 12 months. you will see these hedge funds have more or less tracked the currencies themselves, these cryptocurrencies and they lost money nine out of last 12 months . disappointing for investors, especially if they're paying fees of two and 20 for performance that has tracked the currencies themselves. if you want to check it out, had to gtv . vonnie: three-pointer, definitely. is that jargon in basketball? michael, what you have for us? michael: it is. well done. if you're like me and you do not want to read all the boring prospectuses you can always just that on the lot of them by an
etf called the renaissance ipo etf. the problem is newly public companies tracked by this etf have not beaten the market over the past water years. this etf has -- the past four years. this etf has not drawn inflows. that changed in february. in march, the etf saw the biggest inflow since its first month, more than $12 million. vonnie: mike, you're out of time. as charming and amazing as you are you forfeited. hema is the winner. guy: i will agree with that. we are running out of time. you can check out the bloomberg brackets on your bloomberg. ♪
>> from new york city, real yield starts now. jonathan: coming up, global fixed income. junk debt in the u.s. delivering the best quarterly gains s marko price doom and gloom elsewhere looking for a rate cut. the big issue. despite the tension, global bond rally. >> right now i think everything looks great in bonds. equities going up. >> mag