softbank's terms would be. the thing with the jpmorgan chase package, it would take so much longer to pull together. softbank could come up with the money very quickly. that is the advantage there. taylor: i want to look at a chart that i am showing to our bloomberg terminal audience. we know the story. the bonds are trading down to about 84 cents on the dollar. yet that is a far cry from 30 cents to 40 cents that you typically see when you're looking at recoveries. when you look at the jpmorgan bonds, 15% coupon, i know we don't know much about price, but is there a sense that there is a general market appetite for a big high-yield deal like that? sarah: yeah, i would say so. they have found potential investors. nothing is firm yet. but just the notion of a possible deal, then wework's existing bonds were higher this week. they had been trading lower. if you price something right, you can always find a market for it. taylor: what are your takes on the jpmorgan competing deal? andrea: i think overall as we have

only a small amount of softbank's rounds were warranted at that. it was almost a trick, that raises all of these conflict of interest questions, that they could leak to the market, but $20 to $30 is the range that people seriously talked about the ipo and we've got a massive haircut from that. >> now at $7.5 billion to billion. >>> td ameritrade earnings are out so let's get over to contessa brewer. >> we have a revenue beat coming in at $1.56 billion versus the estimate of $1.47 billion. earnings coming in at $1.05 adjust eed versus the 98 cents that was estimated i really want to talk about the zero dollar commissions that went into effect october 3rd we know that the street is expecting earnings to decline because of that some 36% in the first fiscal quarter of 20 and the company's ceo, tim hawky, says that they are planning for that, but two weeks post announcement, we've seen a 49% increase hour new accounts opened compared to what we were averaging in the september quarter. and they say these are clients of all sizes, smaller accounts to mult

looks like it will go softbank's way. we'll tell you what it means for softbank and jp morgan later, we'll hear from senator rick scott stayunor ted f more here on knbc >> i remember early on, you were not necessarily a believer in the wework model and then you became more of a believer. i want to understand where you are now? >> i'm a little conflicted on this first of all, i think it is a business >> what is your conflict by the way so we understand >> we are involved that was last friday our guest host on the show we know more about how barry is involved reports say he is one of the backers for the package. sources say wework expected to accept softbank's office joining us now axios business editor and chief investment advisor in japan with out pouring on softbank. dan, you broke the other piece of news which is in part how this soft bank offer will pay this separate $200 million payment to adam neumann. >> in legal terms, it is a bribe. he still controls the rights at wework i can't quite understand why maybe they lit

-- facility given to him by softbank. he kind of ran the company into the ground. employees are complaining, rightly so, that many will be laid off, and they will not be able to sell their stock at the same paper value. here you have the founder, who some say was reckless, and he is walking away a billionaire. times the financial reported they could lay off about 4000 staff. what are employees saying? michelle: they are frustrated and likely -- rightly so. there was a meeting with the new chairman, saying the focus would be on profit instead of growth. that is a big turnaround for wework. as they were pitching this ipo this year, it was a big growth story. they have obviously been burning a lot of cash. it will be a big change in culture for them to show profit. if 4000 employees are laid off, that will have huge implications on morale. shery: tell us about the rescue package they received from softbank. michelle: there were two packages that were dueling, one from softbank, the other from jpmorgan. as a last week, we hea

first, softbank taking control. what can softbank do that the other co-ceo's cannot do? ellen: this discussion going on between wework and softbank, it is, look, the outlook is not good. we like that you have two new co-ceos we are interested in , but doing more. and if they did take a larger stake in the company maybe that , could change the company, so i think the discussions on the table are about mid to long-term plans around profitability trying to get expenses under , control, all of the things that wework has been criticized for the last couple of months. taylor: michelle, if something -- if something comes down to the need for cash and if softbank were to come in and take control, do we know how much money they would invest, loan, put up, whatever the sort of term is here, to get wework to 2020? michelle: all of that is pretty much still in flux, and it comes down to between the jp morgan debt package and the situation with softbank, who can get everything together quick enough for wework, because at the end of the day, what it needs is cash. on the jp morgan sid

a softbank deal would mean you would get diluted. a debt deal on the other hand do -- get the company an injection of cash without needing to do additional dilution. that is risky. it will be a big burden on the company to pay back those loans over the next x number of years. taylor: walk me through that valuation. our colleague wrote about this in his latest opinion piece. softbank could still come ahead. every time they invest, they are lowering their average price. their ipo could benefit. the other stakeholders who got in late, they are not seeing their average price in which they are investing drop-off. what does that mean for them? are right, you are watching the valuation of wework drop rapidly. as we talked about in january in their last funding round with softbank, at least it rounded up $47 billion. these deals we are talking about, floating the valuation around $8 billion. a huge drop. as you mentioned, softbank, if they go forward, this would be probably instake the secondary offering at a valuation of around $8 billion.

one is led by softbank. we've heard that that is about $5 billion that would be a combination of money that the company would put, softbank would put into we work. it would come from softbank group itself rather than the vision fund. on the other side, you have jpmorgan putting together this debt package which could carry very high interest rates. we've heard it could be 50% interest rates in order to get investors interested in putting additional money into the company. these are two competing alternatives. it's a very fluid situation. the board still has to look at these options. there's a possibility could see some combination of the options. haidi: the jpmorgan root would be the riskiest offering in recent years. what are investors us -- saying about this? >> investors have said, one person called it off the charts ugly. this is a very high risk deal. they are talking with their financers at this point, trying to figure out exactly how much they would have to pay in interest to be able to get investors i

. ♪ taylor: softbank is said to plan a $5 billion rescue for wework, funds coming directly from softbank rather than its vision fund. what do we know so far about this? ellen: this is one of two plans may be in the works that are subject of a lot of discussion going on this week with the wework bored. they are scrambling to figure out how we can keep this company going, when they reported in the past wework was set to run out of money as soon as next month. we have new details on a potential proposal from softbank to invest around $5 billion in the company. that would give them a much larger stake, though not a majority stake. taylor: do we know if this is in lieu of the jp morgan deal, or instead of? ellen: it seems like these are both on the table. they are pretty different. one of the major decisions the board is going to have to deal with this weekend and next is which one is better for the company? which one is going to provide a better fast-forward? the jpm deal is around the same amount of money, $5 billion, but in a complicated debt package. taylor: with the softbank deal, do the

being able softbank to control how the operation runs. other things they are reporting there --king over from there's a chairman takeover, operational changes. caroline: great to have you here for all the breakdown. we thank you. it's a complex story. let's get a quick check on the business flash headlines. there has been a settlement in the opioid case in ohio. the largest drug producers agreed to pay $250 million to avoid a trial to -- four -- and avoiding the blame for the crisis. hasformer chief of pimco pled guilty to money laundering and collusion charges, accused to geting a middleman his kid into the university of southern california. that is your business flash. romaine: a fourth day of riots in chile. , rocking latin america. that's coming up next. this is bloomberg. ♪ mark: i'm mark crumpton with first word news. president trump has insist that he is pulling american troops out of syria and getting out of what he will's endless wars, his defense secretary says that the u.s. may leave some forces in syria to secure oil fields

softbank is going to take over wework, is that the deal? that is the talk in media, sally, because japan's softbank, they say in very advanced negotiations to take over wework in a deal that will value the embattled company between 7.5 — $8 billion. and an announcement could come as soon as today. after the move, softbank would have as much a 70% or more control of wework. ali, the anticipated takeover marks the latest chapter in a dramatic year for what was at one point anticipated to be one of wall street's hottest initial public offer is because last month wework abandoned its ipo when investors questioned its large law authors, the sustainability of its business model, and the way it was being run by co—founder adam newman who gave up by co—founder adam newman who gave up his ceo title analysis serves as board chairman. and there are also reports that softbank is planning on paying newman $200 million to step aside if it takes over wework. so wework may soon have its conclusion. sally. thank you so much, rico, in singapore for us.

taylor: is this good or bad for softbank's reputation? ellen: i think this is a case where these are entities that have already invested a lot, not just moneywise but also the reputations in the outcome of wework. there is not just an incentive to save their financial investment but also to save face. they have a lot invested in a lot running on this investment and having wework end up working out. i can imagine for softbank, it feels like there is a lot on the line. if they managed to turn it around, it could be good because if it doesn't, this will be a big scar on softbank's record. shery: which one of those two options would be better for wework? ellen: we don't know which one they are favoring. executives will meet this week to discuss more. our understanding is that a debt package could be slightly preferable to the softbank deal and it would dilute the current stakeholders a little less. it is all up in the air and we will be following it as it develops. haidi: thank you so much for that. ellen huet, thank you for the latest on wew

what will this mean for softbank? the valuation is tricky, but even if the company was valued 20 and 30, this is a considerable haircut and comes at a terrible time. they are about to report earnings and they will book losses on valuations from uber and slack, and some portfolio companies that went public. bes not sure if wework will on this quarter or the following for the next couple of quarters, the story is not great. in sprintn to losses and the deal that has not been closed. becauseng is terrible at the same time he is trying to convince new investors for his second vision fund. the timing and optics are not great. much, ournk you so tech reporter from tokyo. let's get a quick check of the business flash headlines. boeing says kevin mcallister is stepping down from the head of his -- it's jetline division. mcallister is the highest-ranking executive in the wake of the deadly max jet crashes and the worldwide grounding that began in march. the head of the global services district will replace him. haidi: bloomber

every time softbank invested in the company it marked up its own book by a certain amount of money. i'd say, an interesting development here is whether or not softbank in the long term the visionary company that changes the paradigm of real estate investing, this might be one of the best business-savvy moves that softbank made, force out the founder and the ceo taking over the entire time and do it at a discount valuation. >> and if not did sh. >> if not it cost a lot of money. >>> before we go, have to talk about free food. the san francisco 49ers are upgrading their stadium, season ticketholders can expect free, unlimited food starting next year, it includes everything from nachos and hot dogs only for season ticketholders. atlanta, the new stadium was making the whole point of we're going to have really inexpensive food, now the 49ers going to give you it for free. >> kudos to jed york at 49ers, born and raised bay area >> free nuggets for thousands of dollars. really >> people love free things and they love free food in particular i'd take free nuggets if it meant i had to watch

, softbank a big investor in uber why is softbank doing this with wework is this an existential moment for them are they at risk of this investment taking them under >> this is a real crisis for softba softbank the story the past few years is uber is a huge high point or low point, and wework and how they valued the company, but soft bank, a huge vision bank came flooding in giving companies that arguably shouldn't have been propped up more runway and a longer time to survive and vcs out here say this is distorting the economics of how the values should work the companies that are supposed to die out are not dying out because they have so much money coming back into it. i think softbank, this is a humbling moment for softbank and they're trying to save their investment any way they can. >> cameron, channeling my financial malcolm x here, feels like chickens coming home to roost perhaps for softbank is this helpful for the market at least it's contained to softbank, wework and the landlords involved it's not the broader market and it could have been this is a case where you have a major

softbank would likely take a larger stake in the company that already has. >> softbank has its own issues don't they? what does this mean for this giant as it navigates the world of startups and new ventures? >> i think this will end up pivotal -- being a investment for softbank. mentioned, they have already invested more than $10 billion and we work. with this extra investment, it could grow to one of their biggest investments. something they are really sticking the reputation on. as a goes forward, i am much of there might be critics saying this is throwing good money after bad trying to salvage an investment that may not be salvageable. they certainly seem to think that if they take more control of the company, they might be able to turn around, get into a place of profitability and turned we work into a liable business. going ahead, what are the key events and progress that we're looking for? >> the clock has stopped on the ipo. think many do not think we work is likely to have an ipo anytime soon. they have withdrawn their s-1. currently they are within a state of play where in the n

softbank coming in for control or the jp morgan deal you mentioned? ellen: there are trade-offs to both the deals. if you go with the softbank option, it provides a lot of cash the downside is that it will dilute existing shareholders, it will add a couple occasions to some of the tables, there may be investors who are not excited about that. the debt deal on the other hand, that settles the company with a lot of debt to be repaid in the years coming up. that may be seen as too much of a burden for the company to take on. it seems like they are pushing against the clock. this company needs money fast as we reported. they are likely to run out of money as soon as next month which is coming soon. haidi: how much reprieve with the company -- would he give the company to raise that cash? ellen: it depends on how quickly they are burning money. that's something the company has been trying to change dramatically over the last month or so is it becomes clear that they need to tighten the belt to keep going. this is a company that has said they are planning t

what does this say about how softbank is approaching this? this all toank once go away, all this noise around the company's future. by am plummeting their own strategy and leadership, they are trying to open a new chapter for wework. we reported that the former sprint coo who is very senior at softbank is likely to take a big role as chairman at wework, so he will have a role overseeing the company, and there may be 's.ks to search for new co right now they are run by two co-ceos who had been at the company during neumann's era. romaine: does this address some of the financial issues, the idea that they were taking on these properties and the money they were getting in return really wasn't covering that expense? liana: it's very unclear how softbank will recoup a profit here and what the future holds, but what we know is that softbank will now have an iron grip on the company. they will likely control the board, control any major moves the company does, so it is in their hands now, which is what they wanted from the beginning because they alr

what is this downside for softbank in this? >> i think it could, if it ends up going poorly, it could really be seen as good money chasing bad. they have already invested, as we have already talked about, more than $10 billion in this company. they are obviously attached to the outcome of what comes out of wework. although, this plan makes it, then it is almost like wework becomes a softbank company. that would have a great say in installing a new ceo to replace these co-ceos who came from wework. it could end up being something when they feel very responsible, and the narrative suggests that softbank then becomes responsible for whether wework ever makes it out. taylor: that was bloomberg technology's ellen huet. coming up, we hear from facebook's head of libra david marcus next. bloomberg technology is live streaming on twitter. check us out at @technology and follow our global breaking news network tictoc on twitter. this is bloomberg. ♪ here, it all starts with a simple... hello! -hi! how can i help? a data plan for every

analysts estimate that is 4 billion-dollar hit to softbank. on the plus side though, it did invest in alibaba. technically, probably the best investment in technology at least in the modern era. 20 million-dollar investment in jack ma's alibaba. current valuation, 90 billion, so you get a return of 4500%. a little margin of error there. bottom line, some companies are staying private way too long. by the time they go public, there is no value left, no interest. we're continuing to follow obviously tech and media. this kind of landscape, who stays private, who goes public, under what terms. >> who will learn from the wework situation. deirdre, a lot of ground covered. melissa: unprecedented cancellation. hong kong's chief executive forced to cut her policy speech short. we'll tell you why. what it could mean on the world stage. that is next. 12 democrats, debating for three hours. in a debate hosted by two news outlets but one big topic went untouched. fox news's howard kurtz breaks down how the debate fell short. that is next. ♪ get a no-fee

softbank's we work control. softbank has offered to take a majority stake in the custom-made which would value the start of less than $8 billion. private equities professional pay. a new report reveals a dive -- and why it's so hard to be a traitor. it's my interview with dwight anderson. details of the evolution of the portfolio managers world. basak. me now is sonali they were running out of cash and now they might have a very nice closure to this deal. they've been wanting softbank for at least the last week or so. that they wills have a lot of patience to be able to carry out this restructuring plan. alix: is it good for softbank? >> you are facing a plunging valuation. share indicating is this is better than bankruptcy. this plan will hopefully give them time to turn things around and they believe it's better .han paying that 15% yield alix: the criticism becomes istbank isn't set up -- this a whole different skill set they might not have. >> this is absolutely fair. adam neumann edging out so they are real

works for you. >> softbank has reached a deal involving wework under the deal, softbank will provide $5 billion in new financing and up to $3 billion softbank's stake will be up 80%. nike has announced a leadership shake up the move will become effective in january speaking exclusively to closing bell parker elaborated on the move. >> we spent a lot of time working on succession planning this is not something that happens in a matter of weeks it is really unrelated to other issues this is about me and the board really wanting to build on the momentum we've got add in the horse power and do it while i'm here and in a position to lean in and make this as successful as possible >> losses for fisher development continue to mount out of his lewd comments. an announcement to pull making the loss around $2 billion >> kathy jones tell us, good morning, by the way. what is the primary dilemma bond investors are facing right now it has been a great year in fixed income a lot of people have been on the sidelines. they don't know what to do they are afraid to get into the market they've missed t

with the softbank money coming in, mr. newman would have to step away from control of the company but would receive some money. any money is probably a good thing because without jp morgan and softbank this company is worth zero. patrick: i think it will be symbolic of recent ipos with companies coming with billions and billions and no path to earning. these companies should be skeptical. it is all about magic dreams. snap, and ifork, you do not have a pastor profitability you have to sell the dream. profitability, you have to sell the dream. if you have a malala ballistic position -- monopolistic -- iion or oligarchy, think the market got carried high.nd priced things too a healthy dose of skepticism is there now and wework is symbolic of that change. nejra: what is their path to profitability? prospects really ipo? chris: we are a long way from that stage. wework did not have the money on hand to pay severance for its employees, so the first thing when this new money comes in as they will have to do some debt clearing an

this plan -- then it's like wework becomes a softbank company. they could maybe install a new ceo to replace these co-ceos from wework. they could feel very responsible and the narratives suggest that softbank becomes responsible for whether wework makes it out. taylor: that was ellen huet. coming up, libra's pitch man. we will hear from the head of libra, next. check us out at @technology. follow our breaking news network at tictoc on twitter. this is bloomberg. ♪ taylor: welcome back to "best of bloomberg technology." i am taylor riggs. despite losing at least seven partners for its cryptocurrency project, facebook got the remaining 21 to sign on the dotted line monday. kurt wagner had this interview with david marcus. david: yesterday, we had our inaugural council meeting in geneva and it was an awesome moment. 21 companies came together and started working on not only establishing a governance model for the association, but also distributed different roles. a board was elected. i was lucky enough to be elected to the board with four other a

he is expected to sell $1 billion of stock to softbank. he can also assign two board seats and will get a $185 million consulting fee. we are joined by leanna baker. is this the beginning of what looks like the new wework? leanna: for weeks now, we were wondering how wework would keep the lights on and it looks like softbank is coming to the rescue. and adam neumann, the charismatic ceo and founder, is also stepping aside from the board. he will give up his board seat, he will have an observer role, able to appoint some board members, but the hands-on role is being given up, so the start of a new chapter for wework. taylor: can you talk to me about how realistic some of these numbers are when it comes to adam neumann? he is coming away with $1.2 billion, a $185 million consulting fee, a credit line extension. is that fair and normal? liana: it definitely raises some questions of governance, but remember that adam neumann owned a controlling stake in the company. so to get him out gracefully, softbank did have to pay up. he wasn't just goin

or arranged by softbank for $5 billion. buysder how much time that this company. remember that as of june 30, they had $2.5 billion worth of cash on the books. enough money to carry them through for a while. all of a sudden, the ipo didn't happen and it emerged this company was going to shut its doors and run out of money and weeks. i just wonder what is the real cash need of this business, particularly now that they are going to, we think, lay off a couple of people, pay them severance, and so on? how much time does $5 billion by this company? the other issue is they have signed leases, they committed themselves to making $47 billion in lease payments, for a company that bleeds cash. those two are pretty big concerns. both the rate of money they have been going through and the amount of money that they are committed to paying in future years. taylor: tom, softbank look financially savvy here for are they throwing bad money at more bad money? tom: they have little choice. they are so deeply in on wework right now, you canno

softbank planning the take control of wework. a far cry from earlier this year we will bring you the latest details plus fast food fail. micky d's is down. the san francisco 49ers will offer an all you can eat promotion with season tickets. the team president will join us live all this when power lunch returns. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd

it is softbank led by japanese billionaire masa-san taking control here, after the move softbank would control nearly 80% of wework, prior to the takeover, softbank already invested nearly $11 billion in the company. softbank economic marcello clarette will be involved in the company's management, former ceo adam newman's stake will fall to low double digits. last month wework terminated plans to go public the prospectus revealed a huge $900 million loss in the first six months of 2019 corporate governance practices also causing concern >> thank you, josh lipton in san francisco with the latest on wework talk about a down round for the last fund raised $47 billion valuation to what could be as much as $8.5 billion >> so high single digits wehaven't seen this mark down in an equity valuation in a very long time especially from valuation heights like this. we have seen this in other cycles we can go back and remember amazon lost 85% of its value from 2000 highs to 2002 lows and they lost 65% into the 2009 lows it's important to remember there are other things going on similar to this. so

one from softbank and the other from jpmorgan. softbank is seeking to take control of wework. with us to dig deeper of the headlines the elliot brown great to have you with us. how might it think through of these potential offers >> i think it comes down to who gets the deal done first fands the rest of the shareholders are okay with softbank taking on majority control wework really needs cash quickly and the ipo is supposed to provide an enormous chunk of that >> do we have details on what this package might be? >> we don't know thicngs like valuation. basically softbank already is a really big owner they own 33% of the company or so. >> are we to speculate it will be put into expansion. we talked about how they have been opening new offices in southeast asia why keep up the breakneck pace and not slow it down now >> they are trying to do that. real estate is sort of -- there's a delay between when you commit to things and when you spend money. six months ago they were still growing. at 3 months ago they were growing at breakneck pace and find all these leases where they have

talking softbank, we will talk to a company that has received money from softbank's division fund. the company is celebrating its seventh anniversary. joining me is its ceo. thank you for joining us. money --zing to take you were just all together. how do you change his view on what he wants from portfolio companies? do you have to look at the bottom line rather than revenue growth? an ongoinghave dialogue with him. we are not like some companies .hat might have had an investor we have a canadian pension fund, qia, and many others. >> what's type of influence do you are investors have? we talk about softbank and what masa does, primarily because he sets the tone for investment. you have been an incredible growth story, but at some point, is there pressure from investors to deliver on profitability? >> i am fortunate that we don't have pressure to go public. investors are really great partners for us. we are net profitable in the majority of our markets. we can decide to be profitable in any part of the company in a 12 month period. the pressure i get is from our customers. we have

softbank would emerge with 16% to 80% of the equity. that is the latest we are getting on the wework saga that adam neumann would be left with less than 10% of his voting stock. we will get you more on that story as more details emerge. let's get you the first word news now with revocable group to -- ritika gupta. ritika: boris johnson will seek to rush his crucial brexit law through the house of commons in three days after the house speaker on monday rejected his latest bid for a parliamentary vote on the deal he secured last week in brussels. opponents accused johnson of trying to ram a complex go through the parliament as he seeks to get the u.k. out of the e.u. by the end of this month. canadian prime ministers justin trudeau looks set to retain power in a close election, but polls suggest he will lose his parliamentary majority, forcing him to rely on a left-leaning party to survive a second term. trudeau's popularity has been hobbled by a series of scandals. if he loses the election, he will become only the fifth prime minister in

to japan softbank officially takes control of workspace start of we work for billions of dollars even after the rescue we work staff face layoffs if the company's head leaves with a massive payoff will have the details. of the program southeast asia's rapid development is behind an enormous appetite for sand for construction there but that is taking a huge toll on local ecosystems. and the future of cab rides this year german startup polo copter demonstrates its 1st prototype in singapore helping to revolutionize urban transport. for business on the w m how you navigate us thank you for joining us it's been confirmed the japanese tech conglomerate softbank will spend more than $10000000000.00 taking control of work space sharing startup we work it's now spent $19000000000.00 on a company that is valued at $8000000000.00 last week we work canceled an i.p.o. which was originally valued at a staggering $47000000000.00 it's understood c.e.o. adam human is stepping down as part of the deal but while he gets a golden parachute we work staff face to sack. i'm now joined by the w.c. financial

so they take a softbank rescue package? should they take a risky orshould they take a risky high-yield bond package that j.p. morgan is organizing? taylor: of those two options, what does it seem like wework is weighing doing more at this point? liana: we have reported they are leaning more toward the jp morgan debt package because it is less onerous for some of the investors in wework. if softbank were to invest more, i have heard some people describe it as crammed down financing, where the terms would elevate softbank but hurt the early investors in wework and some of their employees. that might be one of the reasons why wework is leaning toward this jp morgan $5 billion debt package. nothing is certain. wework said they are talking to at least investors. 60to help put together this package. but nothing is finalized yet. there is no package on the table. we work bankers are still trying to get it together. taylor: amidst all of this, we did hear that the communications chief officer did resign last week. is that a one-off

a softbank company. they could maybe install a new ceo to replace these co-ceos from we work. very responsible and the narrative's suggest that softbank becomes responsible for whether we work makes it out. feeling we will have you back a few more times this week. i want to switch to bank earnings. shares rallied after better than earnings -- better than expected earnings per share. here to tell me more about bank of america and this digital banking status is our analyst in new york. what do we know about digital initiatives from bank of america? >> something interesting about these banks is that they are under a lot of pressure to rake in more money at a time where interest rates are low end only getting lower right now. take america is highly exposed to that. it's hard to figure out how to bring in more money when the biggest driver is under pressure. their expenses are flat. you see a race to spend more money especially in digital initiatives which end up being $3 billion quarterly at a time when thei

where watching softbank. we have breaking news. a group planning to seek approval of its wework bailout package with the u.s. committee that reviews corporate deals for national security risks. let's bring in our national security reporter. we know softbank is taking over 80% of wework, but japan is one of the strongest allies of the u.s.. could this in fact get some issues with that review from sifius?-- softbank ambitions vis-a-vis wework have been known for quite a bit. back in january we heard they were trying to acquire a majority stake. at that time the division fund and limited partners balked. internally there has been opposition. you can imagine that a lot of the groundwork, especially when it comes to regulatory approval, probably dates back more than this particular deal. so i think the chances of getting approval are fairly good. good: they haven't had a track record when it comes to getting these things through, in terms of not being able to field two board seats, and huber also, -- didn'te sify us have regulatory appr

at softbank, it was the employees of wework. this is the markets behaving as they are supposed to and for a certain extent, this was a victory for the markets. tom: scott galloway, too short a visit. i cannot say enough about the immediate read. speaking of which, the chief executive officer of one of the zuckerberg, will attend the house and foreign services committee. i don't black t-shirt think anyone will worry about what he is wearing but what he will talk about. this is bloomberg. ♪ ♪ bloomberg "surveillance," nejra cehic in london, anna edwards on the green and westminster. we will be following those saying thevaradkar extension could go out to january. january of the next year or the year following? could january 31, and it be a shorter deadline than that. rose.ith us is gideon he has done it again with another essay, a telling set of essays of where we are. at the top of this is a little headline on the cover screen. foreign policy legacy? did you get that from donald trump? what was donald trump handed by president

the problems get handed to softbank. they get 80% of the company but on accounting terms, they say they don't control it even though the whole 80%, because they don't have control of voting rights or the board. what is left behind with the company -- is a company with a lot of debt, cash needs, more than $40 billion of lease obligations over the next four years and softbank will have to deal with that. >> softbank to be planning to take a write-down of at least $5 billion to reflected plunge in -- reflect a plunge in the value of some of the biggest holdings, including wework and uber. >> that is for starters. they could be as much as $7 billion. analysts have estimated losses for the quarter and that is the ballpark i guess the real wildcard here is wework. there are questions about how much the company is worth. they can book positive returns from oil to balance it out, but it is not going to be a good quarter for some. >> boeing shares were on the rise after mapping out a sharp boost output of the, saying it max, sayi

softbank can also book returns from oil to balance it out. it's not going to be a good quarter for them. inry: it doesn't too much his efforts to raise that second vision fund. already, we saw that is challenging for him. -- as challenging for him. >> it certainly doesn't help. imploded,e we work the announcement for second glaringund had omissions. the biggest investors in the first fund were nowhere to be seen. since then, it remains to be seen whether they will put any money at all. if they do, it might be nominal amounts. of course, you have the typical . curve in venture capital the problem for softbank is that they invested in late stage. they have not been shy about booking the valuation games. -- gains. going forward, the vision fund story might be quite negative. the timing is off a. asy could use good optics they try to convince a new set of investors to put up another $100 billion. it's not good timing at all. shery: thank you so much for that. coming up next, we will be discussing demand in china. this is bloomberg. ♪ jessica: f

the softbank deal valued at $8 billion, a far cry from the nearly $50 billion earlier in the year. vivian in new york. nike has at its long—time chief executive officer mark parker will be seven to next year and replaced by board member and former ebay ceo john donahoe. you will be test with shaking the sports apparels online. mark barker —— mark zuckerberg will be facing... last week a court of its initial support is backed out. regulators have said the crypto currency could pose a risk to global financial stability. they are also questions about the safety of a currency run by a social media company that has put people's privacy at risk. the bbc‘s some mira hussein spoke to the head of policy for the libra crypto currency. why do we need digital currency? if you think of what digital critter currency can enable, if you and i wa nt to currency can enable, if you and i want to have something, the cost of going through many intermediaries, that almost serves like a drag on the global economy. how confident are you that you will be up to get this through to regulators? financ

and the softbank deal, sally, represents a stunning reversal of fortu ne sally, represents a stunning reversal of fortune for the office—based sharing start—up and also marked a dramatic fall from grace or adam newman, co—founder. and softbank will need to turn around wework‘s opening losses and find a way to make wework writable yet again. there is talk of thousands of layoffs and shutting down some wework spaces. last month the group abandoned its public offering when investors questioned its large losses, the sustainability of the business model, and the way it was being run by adam newman. and with all this said and done, softbank said it will own 80% of wework and its chief operating officer will succeed newman, and hopes to get it back on course. sally. we will keep a close eye. thank you, rico, good to see you. facebook founder and chief executive, mark zuckerberg will testify before us lawmakers as the social media company faces growing scrutiny over their planned cryptocurrency, libra. last week, a quarter of the initial supporters pulled out. regulators say libra cou

. >> softbank unveils a rescue plan. >> the start of the problem. it means the problem will be handed to somebody else. >> russia and turkey cut a deal in syria. pres. trump: this was the result of us, the united states, and nobody else. >> market conditions the past few quarters have been challenging. >> low interest rate environment puts pressure on the bank and the interest margin. >> investors and policymakers share perspectives on the global economic slow down. >> whether this is bottoming out -- >> the headlines, the trade war, has basically put americans on their heels. >> we will have europe in recession next year. we are stall speed this year, we are recession next year in the euro zone. >> it is all straight ahead on "bloomberg best." ♪ ritika: hello and welcome. this is "bloomberg best," your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. after the u.k. parliament met and postponed a vote on boris johnson's br

has that considering a bailout that would give control to softbank. another option they are considering is a $5 billion that package with jpmorgan. here with the latest is michelle davis. great to have you with us. we have two options here for wework. do any of those options work better at this point? michelle: at this point, it is whatever option that can come together the quickest will work best for them. wework is facing a cash crunch. bankers, investors have determined that if they don't get cash in the next month or so, they will run out. if softbank and get it together first, that will be best for wework. it just comes down to who can get this first. shery: softbank is already wework's largest shareholder, so how would this work in terms of them getting more control of the company? michelle: what has been talked about so far is, softbank has invested more than $10 million in the company. the investment would result in adam neumann no longer having much of a say what happens in the company. he already languished a lot of control when he stepped d

i sip it is with softbank supervise with softbank because they give their money to someone who didn't respect their trust. the guards to investment banks, clearly investment banks could have higher standards, but the good news is did the due diligence and disclosed all this information. carol: do you feel like it was too late in the process? this is a company that was around for a while. imran: i think it couldn't have disclosed it couldn't have disclosed before the filing anyway. jason: when you think about it through your banker lens, your research analyst lens, exploration of private markets versus public markets when it comes to valuations, when it comes to when money gets put in, who makes the money in a lot of ways, you saw this in some ways at your job at snap. what do you make of where we are at this moment, and what is it going to take two maybe fix this between private valuations and public valuations, or is it working the way it is supposed to? imran: i think the private valuation, know, the you can argue that in many cases, not always, but i think i can see why investors l