the rest of the shares, so he has huge exposure to these stocks, and in some cases, they said for the viacom stock that he actually controlled 50% of the flows of that stock, so he had a huge outsized role in how that stock was traded and the pricing of that. haidi: let's take a look ahead of the day for australia and new zealand. inflation remains the major theme with traders. we saw price pressures accelerating to the fastest since 2009. australian mining company scheduled to release their quarterly report, and new zealand's housing acceleration fund says it will spend $515 million on housing structure that will enable up to 15,000 new houses to be built. this is bloomberg. ♪ xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit

gfx, viacom, he had an enormous amount of what was daily traded. how did the banks not know? they said the banks were misled in some of the language that was laid out, we will hear more from a press conference later from the southern district. but there is more detail here. working with another hedge fund, for example in some of the stock trading that happened in the background, the way archegos funded traded stocks through market into the close in order to inflate values of the stocks, really how the entire scene had come together. the question that remains, how will bill hwang and his team respond and what is left are the banks to say after they already incurred the losses? regulators are conducting investigations on their own. guy: absolutely. is it opportunity for the banks, or is this a risk? there were lots of red flags around bill hwang already, before we head to the skin to the skin the blowup. is there a danger that they end up looking even worse as a result of the details that are likely to come from the prosecution? sonali: that is the big question. there is one me

look at this incident, they think about those specific trays themselves, what happened when it came to viacom, gsx, but also how the banks handled those instances. the bank at the time held emergency talks before the unraveling of a lot of these traits. other investigations going on at the same time. it was reported previously that banks are facing antitrust questions around what happened here, questions about whether they should have held these emergency talks without a regulator present. a lot of regulation being discussed among the family office industry, concurrent probes among regulators. matt: we have learned about block trades recently, a lot of gray area. may be these banks floated the idea that there were big blocks of shares out there looking for buyers, and then everyone front ran that selling. sonali: what could have happened at the time, a lot of the buyers want answers to, were there any crossing of chinese walls, were clients alerted? there is no wrongdoing accused of yet, but this is an investigation that goes to the heart of not only arche goes but a key business on wall stre

sources say reliant and volley -- viacom are in talks to include that and comcast in a consortium to outbid competition. amazon is said to be in the fray and sony is also said to join the rights currently owned by disney. next, we discuss how asian markets react to the latest developments in ukraine with oriana financial global cio isaac poole. we are watching the asian stock markets. good time to take a look at all of this and see what might happen next. keep it right here. this is bloomberg. >> you are wak australia. vladimir putin has recognized separatist republics. in a televised event, he demanded that governments all stop military action. they say that they killed five ukrainians of that they called spies who crossed into russian territories. the latest policymaker flagged a hike in the march meeting. bowman said she favors forceful action two inflation and supports raising rates in march. she added it was too soon to see how big of a rate would be. u.k. prime minister boris johnson has confirmed the covid rules will come to an end in england. starting on thursday, people infe

when we put viacom and cbs together, we had the market size to put together a string service that became paramount+. you see the early results of that today, and again in the fourth quarter, things like the "yellowstone" spin "1883," which has been a huge success. things like movies coming to paramount+ from paramount, including those two number one movies in the first quarter, they will be on paramount+ in march of this year from our fast theater to streaming strategy. there's a lot to follow on here, and we are tremendously excited about our ability to be a very significant player in streaming by putting the powerful paramount content engine in-house. guy: thank you for so much of your time. bob bakish, the president and ceo of paramount. loving the new name. there's that hollywood halo effect. keeping you up-to-date with news from around the world, here is the first word. here's ritika gupta. ritika: retail sales in the u.s. rebounded by more than forecast last month. americans kept spending through the pandemic and rising inflation to help drive the recovery. the value of overall pur

earnings, viacom, roadblocks, airbnb. the of the senate banking committee voting on biden's fed nominees. i think that one may be called into question. tomorrow what are we watching? kailey: the nato defense ministers will be meeting in brussels. we will get economic data as well as the fed minutes as well as earnings season continues. nvidia reporting in europe. also in your we will be getting u.k. inflation. coming up tomorrow we will have interviews with the ceos of barrack and viacomcbs. do not miss that. coming up, u.s. deputy national security advisor will be joining balance of power with david westin on bloomberg television and radio. the table is coming up on dab digital radio. this is bloomberg. ♪ ♪ yep, it's go time on the most reliable network. you get unlimited for just $30 bucks. nice! but mine has 5g included. yep, even these guys get it. and the icing on the cake? saving up to $400 bucks? exactly! xfinity mobile. it's wireless that does it all and saves a lot. get the new samsung galaxy s22 series on xf

. >> when you look at what disney's peers are, you're looking at viacom, discovery, comcast. what's interesting about this is 80 a stocks have been underperforming here to date. disney also tends to be roped in with that major tech trade is a big tech company in some ways simply because it has both that reopening exposure with 30% parks revenue as well as the disney plus subscriber and the major investment that they made in their. -- in there. jon: thanks a lot. great perspective. jason, thank you well. we will be watching disney's numbers when they cross later today. sure to watch bloomberg's interview with the disney ceo coming up on bloomberg. the bank of canada governor is now weighing in on the bridge blockade currently playing out at the border between canada and the united states. we will tell you what he had to say next. this is bloomberg. ♪ jon: this is bloomberg markets. i'm jon erlichman along with matt miller. we were watching the bridge blockade at the canada u.s. border. the bank of canada governor weighing in on that, saying it could certainly have an impact

keep an eye on disney and viacom . down 3% for disney, do percent for viacom. lots of questions now about these streaming services and the potential for a slowdown in growth. the big stock everyone is going to be talking about is peloton. they were down 24% yesterday. they are higher in the premarket by 6%. peloton came up with a statement last night basically saying the initial reports that they were shutting down production was false, but they did say they are cutting costs related to production, and that they were considering layoffs. they also came out with preliminary numbers, some ab that is why you are seeing a modest bid, but you're talking about it when he 4% decline we saw yesterday. tom: the top of market for peloton is when i bought it and went a mile. jonathan: i don't believe you have ever gone on that bike, tom. tom: romaine bostick has. some important earnings into next week as well. as far as i'm concerned, this is the domestic and finance interview of the day. george saravelos has been brilliant, filling in all of the research at deutsche bank

discovery at bank of america, viacom at deutsche bank. both took -- both to buy from good streaming numbers. tom: thank you so much. greatly appreciate that this morning. right now as we recalibrate after a which she was -- after a tumultuous week, kristin bitterly joins us. you need to write language at the right time. to me, it is super intense. in your research note you talk about a super intense moment, the super intense week we had last week. how do we find calm in these markets? kristen: finding calm in the one thing we can look to which is actually earnings. everything that is going on, whether it is the substantial movement in rates, fear of inflation, the one thing that will come back that is the record high profitability. so it is not just about what happens in q4, but more importantly, it is the forward-looking guidance we will also get from those management teams that have previously held back. but if you are able to withstand some of the pricing pressure, you are able to withstand some of the supply chain disruptions, those a

the soros fund management sold off all of those stocks, notably viacom, cbs, discovery, tencent, and baidu. it looks like the entire position sold off. they picked up a large chunk of those stocks in the first quarter. soros also added amazon. finally, it looks like the love affair with tech may be over in that a lot of these terms -- firms seem to be selling tech holdings. haidi: it does look like investments -- does it look like investments tied to the pandemic are still favored? su: we saw stocks like doordash picked up or added by hedge funds. chase coleman, tiger global, doubled its position in doordash. another one doubled their position, also added to its position in pellet gun, zoom also -- in peolton, zoom also, and moderna was a big add for many funds. another big hedge fund added a new position worth more than $900 million. health care stocks were a big theme. medicaid insurers, another health care buy we saw in some filings. haidi: i am watching michael burry betting against kathy woods. we are seeing in these filings that psion asset management has bearish contracts agai

viacom, tencent, discovery appeared to have been sold the same amount sold in the second quarter. that includes a lot of the chinese adrs. they did boost their amazon position. it also looks like the love a fire hedge funds have -- love affair hedge funds have had with tech stocks may be over or taking a timeout. a lot of funds appear to sell faang stocks into the rally. they were hot on fintech and spacs notably. haidi: looks like investments tied to the pandemic are being favored by these big investors. su: a lot of action to pandemic related stocks. doordash picked up by two prominent hedge funds pig chase comte -- prominent hedge funds, they all either added to or engaged in new positions. a name that benefits from being stuck at home, moderna, which is part of the s&p 500 also saw a lot of action. the vaccine maker saw a new position worth 900 million. others ramped up their position as well. shery: su keenan with the latest filings. a peek into billionaire and hedge fund assets. this is bloomberg. ♪ >> i stand squarely behind my decision. after 20 years, i have learned the

i'm interested to see what viacom and comcast do. they are too small to win this. this is not a business to chase. better to be a content seller than a fifth rated streamer. we are looking for consolidation. do not know when that will be, but to us that has to happen. lisa: are we passed peak content? michael: i think we are year or two years away. apple is going to put more money to work, amazon will as well. there is clearly too much content out there. the economics are forcing lower and lower returns. there is just too much capital chasing this opportunity. lisa: this wears on the hardware story of things, that regardless of who wins the content wars, more people are going to be streaming. is that the pure plate going forward to hinge on the streaming phenomenon that is only getting stronger, even if there is a war on content that is created keeps in pricing down the road -- created keeps -- created peaks in pricing down the road. michael: -- craig: the question is whether -- you could make the argument that in this particular gold rush, the ones that are sellin

this is such a clear sign of the commitment we have seen from viacom/cbs when it comes to paramount. in terms of streaming content, they are trailing, but huge fans of south park. we will be so excited to hear about the new content and i am sure that they will come up with some controversial content as well. shery: i just hope kenny dies less. he keeps dying and he is my favorite character. i think we have seen the back of his head but not necessarily the front. we can only imagine the character. i love all of those characters. some of the controversial topics that they are able to tackle, i love them. apparently, this new deal runs through 2027 so it covers six more cycles of south park so we will be watching that closely. haidi: i wonder what covid variant we will be up to and if we will still be under lockdown. shery: the latest episode was about the vaccination, the elderly getting the vaccination first, which was really great. for those who have missed some of the latest episodes, go wash them. south park will be getting a few more seasons as well as movies. haidi: always topica

alix: for more on the viacomcbs results, bob bakish, viacom president and ceo, joins us. it is great to have you here. we want to get right onto the streaming numbers. two ways to look at it. one, everyone was at the movies. they don't sign up for streaming services. two, people continue with streaming services because the delta variant is keeping everyone at home. which one are going to see? bob: we are really happy with our quarter. streaming story is truman to sleep strong, both on the pay side, where we added the most subscribers, 6.5 million, bringing us to 42 million globally, as well as on the free side, where our ad revenue more than doubled. so streaming is definitely important. it is definitely an area of momentum at viacomcbs, but that is part of broader momentum in the company. we had a great quarter on the ad side, a great quarter on the affiliate side. a whole series of deals. so there's a lot going on. in streaming, we continue to be very excited about the opportunity in this space. as you know, we are investing in paramount+, a service that we essentially

that's why comcast and viacom, rumored to get together. [indiscernible] jonathan: michael, this seems to be a broad sector call. that is what gets my attention here. this is neutral netflix, neutral walt disney company, neutral roku. you see this across the board here. michael: the problem is, and i think about your previous guest in the cost of money, you're going to look out 5, 10 years to see valuation be supportive. to me, it is a long way to go, and everyone is so confident about their data points that i take the other side of this trade. we know streaming is the future, but the market has overpriced these assets. i am just going to wait for that entry point at this point in time. jonathan: let's talk about what would it take for you to say i'm wrong. always a good exercise. what would it take in the coming year? michael: one is our view is that the u.s. is a very competitive market, and it is hard to eat profits out in the u.s. business. you would need to see more consolidation. you would see apple and amazon step act, and you need -

disney, comcast, viacom all involved in streaming services. during the day, they held up paired netflix going into the earnings story. started to see their stock drop -- started to see their stock drop. we did start to see some of these names trade in sympathy. does that continue to tomorrow? we will have to wait and see. i do want to broaden it out into some of the other sectors of tech. today was a risk on day. when it came to tech, it did not discriminate. we did see the nasdaq 100 much higher. not as big as some of its cyclical names. 1.2% gain is nothing to scoff at. that came down to semiconductors, biotech stocks, even the chinese adrs. those had been under pressure because of the regulatory scrutiny today attracted investors. caroline: crypto still down to -- crypto still down. always great to get her analysis. netflix shares down, now managing to push back higher. we are still worrying about the subscriber forecast. 5.8 million. they are getting a guidance of 3.5 million coming from netflix. it was conservative, but is this more than

the obvious target are viacom, cbs, paramount plus service which is behind the pecking order of others. then of course comcast. beyond that, you don't just have m&a specifically, it's about other deals. >> we can see pictures. are there any interesting conversations you can see happening? >> yes, you have this antitrust news at the mike -- the moment. we haven't actually seen the microsoft ceo yet. they tell me that jeff bezos is on his way, but he has not arrived yet. and of course, google is in the freight. imagine -- google is in the fray. imagine them all being in the same room with the data and ios discussion going on. i also asked sheryl sandberg, did she have any comment on president trump's lawsuit? she said no, then she went in and had her breakfast. i think that more arrivals are expected if jeff bezos comes, there will be questions about blue origin. july 20 is not far away. should he not be preparing for his trip -- trip into space? the keynotes are really about the economy, covid, a lot of health specialists here. what i am hearing is that this is a great time to speed dat

of mgm, you look at what apple has done in the content space, now there is pressure on the likes of viacom, cbs, comcast, can they buy some property that will keep them relevant? one thing is clear, there is a consensus behind the scenes that there are deals to come in the tnt space. matt: cheryl and mary are pretty young. everybody else there looks pretty wise in their years i'm sure. we saw warren buffett pull up. is there a young tech crowd there at all, or is it just billionaires and ceos in their 50's, 60's, 70's, and 80's? ed: it is really interesting. the press is camped out because they want to hear from jeff bezos. sources tell me that jeff bezos is attending. you do have this next generation of the palantir ceo who is here, for example. you see other players from the worlds of social media, dropbox's ceo drew houston is here. twilio ceo is here. those may not be household names when it comes to sun valley but the landscape has changed. deals gone behind the scenes. when executive made the point when you think of sun valley, you think of m&a and the telecom sector. he is not in th

which of the players, viacom, cbs, comcast will have to do something to compete with amazon? talking about amazon's acquisition of mgm, the maker of the james bond films. that is the talk in the media space. beyond that the chatter is about we are all back together, we've not seen each other for a long time, let's do some business. taylor: you mentioned amazon. there was a big shakeup in the tech world yesterday with microsoft may be losing some of that contract to having to share it with amazon. where are the biggest of the big? ed: this is what some of the awkward moments about sun valley are. the relationships between ceos that are not in a good space. sources tell me jeff bezos is coming from sun valley. we have also not seen microsoft ceo -- he has been invited according to the list. now google enters the fray and we have not seen -- we are also interested to see what jeff bezos has to say if he arrives. the baton being handed over this week. sources tell me it was an opportunity for jeff bezos to present the new amazon. guy: in terms of what is expected to come out of t

what does that mean for viacom cbs? also looking at amazon because of jeff bezos. sources tell me he is definitely coming, but he's not arrived yet. of course, we had the jedi contract. we have yet to see google's ceo, who may now have a chance on that contract. i spoke to a couple of executives this morning. one pointed out to me that this is a great opportunity for him to be in the room for the first time in 18 months with customers , with investors, with existing business partners, people that haven't been face-to-face for a long time. i asked another exec it of which will we see deals happen? he said they have been holding this conference for 35 years. why would this year be any different? taylor: i'm going to take it from here. iq has always for bringing us that report from sun valley. i hate to break it to you, you are the cell signal. the minute you open your mouth at 10 a clock a.m., you get a sharp drop. we do not go to the moon. we go to the opposite. take a look at gamestop, off 9%. amsi is now off for 4 -- amsi is now -- amc is now off for four straight

viacom, cbs, comcast, nbc universal are under pressure. one of the most telling comments is that he is paying close attention to the amazon mgm deal because it shows scale does matter. the only way these guys can compete is if they scale up. he suggests amazon and apple have the cash. they have sharp elbows and they have switched up the industry. romaine: we will see if apple becomes a thing in the streaming wars as it has promised to be. is there talk at all about regulation at the idea that dreams of consolidation could run into a new administration and a new focus on size and scale? ed: i have asked and people say we will see. the bided administered -- the biden administration has put energy back and antitrust. i asked sheryl sandberg of facebook if we will see facebook being more aggressive. she said nice to see you and did not comment. what people are focused on our deals that add value. the pandemic theme has been that content is king. it is not just traditional broadcasters. it is not just traditional media companies trying to get h

a lot of shareholders did get burned, some of the shares never recovered, things like viacom, cbs, discovering. dani: it is amazing, archegos the collapse happened years ago. thank you so much. our bloomberg finance reporter. sticking with what happening in the u.s., joe biden's determination to forge a bipartisan infrastructure deal is paying off as a group of senators reached agreement on a $579 billion plan. let's get the details with derek wallbank. how likely this is deal they are discussing going to be the final deal and pass congress? pres. biden: i will stand by and talk to you all. derek: reflecting that. there are a lot of hurdles in the way here. the problem that we are talking about between saying, this is the framework of the deal is that progressives have learned a trick from the -- and are now saying, if you want to move this all the way, this bipartisan deal, you also need to be on board for a reconciliation passage -- package to try and put through some of their priorities. what you have now, is you have the left of the party and the center of the party trying to figure out ho

the market, burned other shareholders, and some of those shares still have not recovered things, like viacom, cbs and discovery are still down 60% from march. regulators want to know what conversations went on behind the scenes. there were conversations before they started unwinding their positions but it became a race in unwinding these stocks. that is what regulators are looking into. the sec is also looking out of her disclosure requirements for funds like archegos which used these instruments to buy into their shares in the market did not know. so the sec wants that to be clear, that the market is not left in the dark about these big chunks of shares. haslinda: joe biden's determination to forge a bipartisan infrastructure deal is paying off, as a group of democratic and republican senators reach agreement on a 500 of a billion dollar plan. economics and policy editor kathleen hays is here. by then says it will create millions of jobs, fulfill a major piece of economic agenda. what is in it? kathleen hays certainly a lot of money, maybe not as much as the democrats and the white house wa

shares of roku and via, rallied -- and viacom rallied on a wall street journal report that comcast ceo might make a bid for one of those companies. the speculation following a flurry of big media deals including amazon's acquisition of mgm and at&t's agreement to combine warner media with discovery. this is bloomberg. ♪ emily: trillions of dollars and assets. tighter rules. we spoke earlier on bloomberg television about everything from meme stocks to spacs. take a listen. >> i am animated by working families on this job and working families need the protection and franklin roosevelt knew this in the 1930's. we know this now. president biden do this. -- knows this. it's about ensuring they can make choices in the markets. that helps companies raise money by lowering the broad manipulation, ensuring there is consistent disclosure to those investors. companies benefit. >> what do you think we need more disclosure? >> i think there is trillions of dollars of assets under management calling for greater and consistent disclosure around climate risks and i've also asked staff to take up dis

when it hit viacom. a lot of these traders are coalescing. basically, proper traders, more institutional players start piling in. romaine: i'm curious, with some of the models you put together and the research you do here, do you find that the speed of the rotation, the speed of moving from one stock to the next has accelerated at all? lily: it is debatable to say a location, per se. right now, amc and gme. my hypothesis is that there is really a finite amount of what people call dumb money. you see this coalescing around retail investors, maybe a few institutional stocks which are -- really the squeeze ended with clover, approximately where the stretcher ran out on the auction. you have people who talk about this. you have a lot of retail options , whales, big tech. a lot of these retail investors. joe: we just have one moment. obviously, social media seems to be a big part of it. do you see on sites like reddit and elsewhere, people jostling, or instant -- or influential voices who have a high propensity to select the stock of the day that

viacom, cbs and disney plunged ruefully. that is when george soros's family bought. biontech, moderna, j&j. warren buffett berkshire hathaway closely followed. looks like he exited some core completely. a firm he had a 700 million position in last year. he took position in an insurance rocher that briefly picked up after hours as the 13f was revealed. normally, buffett's brand-new ad to get attention. some are theorizing the buffett magic may be gone. shery: let's get a quick check of the latest business flash headlines. air -- at&t confirmed the blockbuster deal to's been off media operations merged with discovery creating rivals to netflix and disney. the agreements will merge assets ranging from cnn and hbo to hd tv and the food network. discoveries ceo will lead the new entity valued at $130 billion including debt. the softbank vision fun is said to be considering listing a blank check company on the amsterdam stock later this year. sources say it is seeking hundred $4 million from the deal. it would target investments in the europe tech industry. the korean capi

we should also point out viacom shares getting a bit of a boost off the latest 13f filings that showed a few big funds taking a big steak. another story out there today, crypto. we had all of the rumblings over the weekend, a one-word tweet by elon musk upending the market, down about 10% on the major coins over the weekend. tesla down by about 1.6 percent. a lot of the concern is less about what this means for crypto coins themselves and really the idea that a lot of company's have started to put this thing on their balance sheet. the idea of whether they are as committed to it is some of -- as some others seem to make out. microstrategy seems to be the most committed of all. we will keep an eye on this. square and a few other names in this space down in the premarket. jonathan: before you go, can we talk about media assets in america? from a personal perspective, have we got too many streaming services now? romaine: yes, absolutely. jonathan: most people are in the business to take one away. romaine: i think a lot of us amassed a lot of streaming services. we pretty much got them all

you could look at viacom coming in for some of it. it is quite hard to see any one buyer trying to take the whole piece, just as we know there was already a lot of antitrust pressure in this industry, concerns about plurality, about too much concentration of ownership in the media. especially now with the new ftc, how they have already behaved and the language coming out of there, you would need to have a fairly aggressive view of your ability to get this through regulator if you were trying to do a whole company bid here. lisa: can you talk about the price discovery would pay in what form that would take? ed: we think the deal would be structured as a reverse mark trust, which what will happen is effectively at&t will spin off the warner business, and the warner business will make some kind of payment, borrow money, make some kind of payment to at&t. after that, the warner business mergers with discovery, discovery shareholders and up owning one third of the combined company, and at&t shareholders own two thirds of the company. essen

viacom, discovery down sharply as well. earnings have been coming in hot, they have been good, but after what has been a stellar year, it is hard in comparison -- hard to pale in comparison. matt: ritika gupta with the stock of the hour. coming up, shopify soaring in today's session. we will speak to the president, harley finkselstein, on the big earnings beat and showing the big e-commerce boom might not slow down when shops open back up. this is bloomberg. ♪ matt: this is "bloomberg markets," i am matt miller. we continue to count you down to the fomc decision coming at the top of the hour, and we are going to bring you special coverage of that, president biden's speech as well, later on in the programming. you have the fed coming up at 2:00, and later on, 8:30, our special coverage it a president biden addressing to the joint session of congress. definitely stay tuned to bloomberg all evening long. the stock now about online shopping. shop a fire reported its first quarter earnings today, smashing estimates across the

that is what happened when viacom come started to trade down. eric: that -- i mean along with the size make this a fascinating story. this is a guy that has such a low profile, he flies under the radar and manages to put together a -- you managed to put together such an industry piece that makes me wonder what is next? born again -- no pun intended. you can check out bloomberg businessweek by erik schatzker and his team. they broke this story weeks ago and have been doing fantastic reporting. vanguard launches its new active bond etf in three years. active, vanguard, yes. why investors are shifting from mutual bonds to exchange traded bonds. this is bloomberg. ♪ ♪ matt: vanguard, the $7.1 trillion investment giant is announcing an etf bond. the first active etf to launch since 118. here to talk about this is head of etf product management, rich powers. talk to me about why now and how etf works? rich: we have offered etf's for 20 years. we have had a long-standing offer in the index space, but as you probably are aware, we have a history of

viacom stock moves higher. why is it moving so much higher than everything else? then it was, that fall, that is very difficult to guard against. to the extent that you can now look at the top of the shareholder list and say how concentrated those positions, that is a partial way of looking at it. it is difficult to figure out where this was. then, they are levers against one another. that is difficult to gain hats on. shery: does it make it more risky that we seem to be priced for perfection in the equity market? we are showing the huge rally, not just in the level of games, also how broad it has been. these are more stocks above the 200 and moving average. >> i think that is also very much a consequence of the fact that central banks continue to keep it low. i think that is also why you have stocks priced somewhat, an economic backdrop that looks like it could be supportive. it was difficult to figure out who was going to come out of that. you are clearly pricing in the u.s., a much better economic situation going forward as we get out of the pandemic. vaccinati

some of them even thought it was day traders that was driving up others, like viacom. even the bankers don't know how to fix it. >> you have to wonder how thomas g. didn't realize that someone was trading with so much leverage on credit suisse's book. g. said in a quote, i recognize the cases have caused significant concern among all our stakeholders. serious lessons will be learned. he was brought in to deal with an issue by his predecessor. now he is facing not just this, but the other issue as well. he kept his job. >> it is interesting, people are giving him a great period here. we are seeing laura warner, being replaced in the interim by somebody who held a senior position in the same division just before her. a lot of the changes you're seeing, on the base of it, it is changes, but the reality is, some of it is also a lot of the same, right? the issue here of leverage and risk management, then there's also the issue here of leverage to liquid funds in the first place. then also they lost so much money tied to york capital. what is it about credit suisse's culture

you did this at viacom. the idea of a mind is a terrible thing to waste. the indian ad campaign that i remember from years ago. do you need celebrities? dolly parton has had the biggest impact so far. she was out there with her covid confidence. do you need celebrities so hans vestberg is happy with your program? lisa s: what i will say is trust is at the core of hesitancy. i think what we know and believe is that not only is the messaging important, but the messenger is also critically important. who are those trusted messengers that each of these hesitant groups really believe and trust and feel comfortable with? for us, the common thread again is that medical experts are at the forefront. they are the number one. people want to understand from their nurses, pharmacists, have they taken it and then there are amplifiers, those people that can -- tom: i don't mean to interrupt. i think your observation is so important. frankly graham set up a set of tens outside mount sinai at the beginning of this. what do you need from the evangelical leadership away fro

for archegos-linked names also on watch after credit suisse is said to have shopped around shares of viacom, as well. stocks that lost ground as part of a margin call fall out. credit suisse adr shares take a hit in an attempt to manage risk follow up with an update on losses expected from the bank this week. as you noted, the i.b. chief brian 10 is reportedly set to leave and we are waiting for an announcement that could come tuesday. bloomberg intelligence saying the bank buyback maybe the least of near-term capital fallout. more, weather report the bank is disclosing this month the size of losses related. and we are seeing chinese adr and caught up the drama led lower i tencent music, and that pain continues in after hours trade. bloomberg intelligence saying the archegos meltdown exposing overcrowding in the chinese tech sector. china's markets coming back online today so we are watching for any reaction there. hong kong markets remain closed along with thailand. we take a look at the board, modest gains for asian stocks today. the offshore yuan trading in that 655 zone, on a private re

viacom, two of the big names that saw massive blowup. once again, i mentioned tech not really trading is a bundle. the stocks index and the s&p 500 index information technology index kind of trading in line but you are seeing this semiconductors and chipmakers outperform. emily: the brains behind your phones, tablets, pcs, cars, smart almost anything, arm provides the chip that powers many of the world's devices. the first new architecture in a decade, the arm v9 chip. what will this mean for the tech sector and your devices? joining us, the arm ceo simon segars. talk to us about what this means in terms of security and performance and how this sets arm apart from rivals? simon: the unveiling of this is a big moment for us. it is exciting because it is the fruits of many years of labor. we do a major update to the architecture about once every 10 years. it is really important that there is consistency in the architecture. the underlying model that software developers rely on company definition that controls how software runs, how softwar

media companies such as viacom, cbs, rebound. shery: we know that another japanese firm, mitsubishi, took a hit. su: saying it's going to take a $300 million loss but let's start with nomura. the debacle triggered a 16% decline on monday. it wiped out $3.5 billion from its market value. the ceo is having a banner in the year before having to announce their exposure. the first american arm has earned the most income outside japan this year and that loss could possibly not only end the honeymoon but wipe out a large part of this second-half pretax profit. in terms of mitsubishi, they have signaled that their security unit has a potential loss of 300 million dollars. goldman sachs appears to have escaped any significant loss, saying it will be immaterial. deutsche bank also appealing to material loss and wells fargo. morgan stanley, their loss or exposure is not known at this point. back to you. >> su keenan in new york. let's get more on the recent market volatility and look at the opportunities it may present. great to have you wi

. >> in the aftermath of all of this drama, viacom shares are rising today. some analysts upgrade as well. what a wild ride, it went from being the top of the s&p 500 to the bottom. we sell the shares rally 100 77% yesterday, until last week, dropping 55% in five days. we see the effect that is happening -- that is having on his media peers. look what fox said, that is getting a significant beating. the warning, it had such an incredible rally during the pandemic that many analysts were worried that it had gone too far too fast. this sudden drop puts its fundamentals back in focus. on its valuations as well. now, more in line with the average when they had skyrocketed before. credit suisse, interestingly enough, coming off of upgrading stocks to neutral. we know how much credit suisse has been hit by this, but it is now telling you that the risk reward is more balanced now. mary of the valley also upgrading his recommendation on the stock. still, 11 cells. six buys. matt: when a stock falls far enough, you have to expect to see certain upgrades. this stock ha

stanley were also offering investment banking services, reportedly, do the capital rates we got from viacom which really started this all off in a big way. so they were offering investment banking services to help this company do a capital raise, etc., and then doing prime brokerage with this company that was heavily levered in a long position as well. just saw those two things come together. lisa: you can only imagine what the internal meetings must be like, although potentially not as contentious as nomura. morgan stanley and goldman sachs went ahead and unwound some of those block trades without the other banks signing off, which was something that has become a point of contention. jonathan: the reports have been amazing on this. credit suisse were trying to play happy family, we will all get together. tom: nonsensical. just like the three of us. [laughter] jonathan: who's goldman around this table, and who is credit suisse? we are not going to do this. james bevan, ccla chief investment officer. from new york city, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupt

dani: this very well could have been, viacom issuing a stock split and because of that, they saw the share price fall. it could be that. it could be one of the other shares. either way, some pretty major losses forced a margin call, forced this liquidation. what we are learning in the aftermath is sources tell us banks had a call saying let's not move on this right away, let's try to exit these positions in an orderly fashion because of what we have seen unfold. it looks like someone like goldman sachs did break rank. they have these big locks rates on friday during market hours. anyone who executes these kinds of lock trades, you don't want to do it during the market hours because it can have the effect of actually moving the underlying stock. for all the banks left that need to still get rid of these positions, there had a pretty sizable disadvantage. the market has already moved so that means losses they will face from this will be greater. it really is every bank for themselves at this point. mark: good morning. i guess the key question everyone is wondering is is there more sell

they are smallish companies like viacom, discovery. there are a bunch of chinese internet companies that none of us have heard about before. people are like what, who? these stocks just don't have the liquidity of mega cap. also, they are quite expensive, especially some of the chinese names. there's always these rumors about fake sales, especially gfx. that is why goldman and morgan stanley can get 10%, 15% discount. there is just no appetite in the market. they have to fire sale more and take more of the losses. annmarie: it's a really good point. we are so focused on archegos that we rarely even talk about, for a lot of people, sometimes first mentioned. there is morning of more pain ahead in the hedge fund industry. how big is this fallout likely to be? shuli: i think it will be fairly contained. he still traded in the chinese adr space. there are a handful of hedge funds. for instance, they would probably get a bit. one of the stocks gfx was down like 40% on friday and 20%, 30% on friday. i think it is fairly contained but the big

but stocks like viacom and discovery are much larger and harder to achieve. when that squeezes filed, that person may have been called out. it was not direct knowledge, but a pretty good explanation for what went on and one of the reasons why most traders are not too concerned about the effects from the margin call. haidi: stocks have gone up a long way before coming down. i want to take a look at the implications for banks, maybe even the lowest here banks. look at what happened yesterday, having the worst day on record. plunging by the most since 1974. the key to that is that we saw volumes of that selloff really surging. does this potentially make you reconsider within this rotation we have seen that maybe you take money away from banks and look elsewhere for more of a balance? >> i'm being very selective but we do look at gains for some of them, about 50% from their lows. i can understand why you might be taking profits because of that. the outlook at the banks remains leveraged to the global economy and they believe a big economic recovery is coming thro

at the heart of this, one of the stocks is viacom, cbs, down almost 7%. it had been down as much as 11%, its lowest level since january. discovery, also down after a dramatic fall in friday of 27%. the other part of this story is the adrs. receipts of chinese companies. but it's not about one single thing. look at the five day changes. this is the impact we are seeing. then if we look at the banks at the center of this story facilitating the liquidation, there are some interesting stories, starting with some of the american banks. goldman sachs, off by just .5%. according to sources, morgan stanley is still shopping a large block of cbs shares on sunday. goldman sachs is telling clients and shareholders that it is insulated in terms of losses from its exposures to the stocks at the heart of this story. credit suisse off almost 14%. america off 16 -- numera off 16%. falling by our record with big exposure. they did not name who, but they did say it was big exposure. emily: thank you so much for breaking that down. for more on what's next, we have romaine b

joe: the stock that caught everyone's eye was viacom. it's fallen 50% in last weekend just got destroyed on friday. what does it say about market liquidity, market depth that with no actual real catalyst, the blowup of one investor can send a stock down 50% and no recovery today. nothing change, just one person out of the game and whole companies by ua she gets cut in half. is that assigned there are other air pockets out there that can't be sustained without leverage? doug: an air pocket is one thing, this was a massive movement because of a number of institutions, as the press reported, wanted to liquidate positions in this name very quickly. nobody would knowingly and willingly, intelligently want to sell $10 billion of any name over the course of a day. the market reacted the way the market should. is there any information or is this a forced liquidation and that is what it was. i wouldn't read too much into it in that regard. in fact, the marketplace kind of worked because there were prices all the way through. you might not have li

but can viacom make up that kind of down rap anytime soon? that is why we may have seen less than half -- i'm emphasizing the "may" because there are no concrete figures for his net worth. there are no concrete figures for the amount of capital that he had pulled up. there are no concrete figures for the level of exposure he had. we are talking billions of dollars upfront, multiplied by -- multiple terms of leverage. so you get the very large numbers very quickly, and that is why an overhang remains over the market and why people continue to talk about the story. because of so much that may yet come to pass. matt: we don't have a ton of time -- amanda: we don't have a ton of time, but this story has not yet unfolded and we watch it with concern. if it is not long-term capital. isolated to this one case, i would say that you have done the best reporting on the story of how red flags get overlooked, how wall street hunger for profit overcomes their risk aversion. so i would ask, do you think there is a lot of margin out there, leverage out ther

in the u.s., viacom/cbs down 11%, extending the losses from last week. what this means for the -- what does this mean for the overall financial stability and how the fed will look at it? i want to get to stephen king about it. he joins us, hsbc senior economic advisor. you are a regular investor investing and safe stuff like a media company, viacom/cbs. how does this square with financial risk models that investors in the fed look at? stephen: a thing to note is nothing is safe. there is risk everywhere. one issue is whether the risk is priced appropriately any particular moment in time. as a general point, i would argue we see a dislocation between what has happened in the financial system and what is happened in the real economy. it predates the pandemic. thanks to a combination of low interest rates and quantitive easing of one kind or another, it is pretty clear financial assets have made tremendous gains over and above what has been achieved by economies themselves. the gap has grown between financial hope and economic reality. when these gaps get b

viacom one of the stocks linked, the banks. both credit suisse and nomura saying it could result in losses, possibly showing up on the quarter. as for the stocks involved in the one way wrong bet, take a look at g1 technologies, then viacom. just a huge list of laggards here, really plunging on this possibility or the unknown around these block trades, and again, the margin calls. however, at this point we have mixed moves for some of the more well-known stocks. discovery earlier had been higher, now it is lower, too. just the uncertainty around all of this is causing -- and here we have gsx absolutely plunging. this is leading into the trend we saw last week of those huge losses. viacom down 50% in just five days. really pretty extraordinary. it is not known how far these tentacles go or how long it will take to really clean it up. guy: you wonder whether today is the day it gets done or whether there is a ripple effect that disturbs that really strong back trade we have been seeing of late -- strong bank trade we have been se

viacom is not. discovery has a much easier path going forward than viacom. the markets treated both the same, but we think -- tom: we have lost audio with michael nathanson. this is an ongoing story. so much of this is off streaming. it is off what we saw at viacom with paramount plus. obviously viacom and cbs combined. all of you have seen huge marketing efforts on paramount plus. it is up in the air among industry pros whether that streaming service will get the critical mass you need, like you haven't netflix, like you have -- like you have at netflix. let's go back to michael nathanson as we reconnect. i was talking about how spongebob at viacom cbs did in william wang. streaming is being tested. what about streaming an update. is that what did in william wang? michael: what did it in was the valuation was insane. viacom claimed they raise capital, they needed more capital to invest in direct to consumer. one of the things you and i have talked about is the capital intensity of this pivot. very few companies besides netflix and disney and amazon have the

tom: anticipated this morning, a block trade of viacom maybe through morgan stanley. you've got to look for debris through these other prime brokers as they unwind this busted trade. jonathan: the operative phrase, we don't know. there is still a lot we don't know this morning. tom: we will monitor it through the day. we've got a terrific 8:00 hour. kevin cirilli wouldn't know way swap if it -- wouldn't know a swap if it hit him over the head. [laughter] kevin, you've got to be on time every time, like the airlines of years ago. today with us, on time, every time. how would you do legislation in a boom economy? forget about the republican/democratic idiocy. how does washington respond to a boom economy? kevin: i think the democrats are saying infrastructure. republicans are saying tax cuts, and let -- and let's keep the tax cuts going. the newly confirmed trade representative over the past couple days said essentially that president biden is not going to lift tariffs against china right now, but that they are holding the door open for talks with china. i think it is a