The end of the day. The nasdaq earlier this week daysile, closing down two for the first time in 2018. Overall a bullish tone here. Up four basiseld, points. The havens bonds are selling off , completing a risk on picture. A team of strategist said bank of Americamerrill Lynch say the bonds selloff might be a little bit stretched. We are looking at the 10 year yield in relation to the 200 Day Moving Average, and it has gotten well above the 200 Day Moving Average by about 30 basis points. It tends to move back down to the mean then. So in other words, the 10 year yield might fall back down 2. 3 . In that case, bonds would be rallying and it would be a risk off tone. But today, risk on. Lets look at two of the major winners, intel and abby. Afterat its highest level beating estimates. They gained an optimistic outlook for the Current Quarter for the full year, and some relief for investors that the chip design flaw is not waiting into the forecast. , up 12. 9 k at abbvie after beating and raising as well, and also talking about a 9 tax rate for 2018. Starbucks, however, and colgate are lower on earnings disappointments. Dropped for the fifth quarter in a row, but analysts are bullish on the possibility of china. Investors not so much today. Colby down 5. 6 percent, missing both of the bottom line. Results were Colgate Colgate down five. 6 , missing both the bottom and top lines. The wallidday, and street journal did put out a report saying that steve wynn, the ceo, founder, and chairman hasindward wynn resorts exhibited a pattern of harassing women. Investors are clearly not liking that report. A very pivotaly part of that company, that drop wiping out 18 billion from the value of that stock. Thank you, abigail. Lets check on the first word news this afternoon with Mark Crumpton. Mark . Mark in davos, President Trump told the World Economic forum that america is open for business. He says he has taken aim at bureaucrats and their regulations. President trump the u. S. , like many other countries, unelected bureaucrats. Believe me, we have them all havethe place, and they imposed crushing and antibusiness and antiworker regulations on our citizens. No legislative debate, and no real accountability. In america, those days are over. Mark the president also said he is in favor of three trade, but it has to be fair. Earned onesident o party in a to ruling group today, president erdogan appeared to be in defiance of the United States, which has urged turkey to limit its campaign in syria and focus on ending the war there. A british judge says you a role next month on whether to throw fora u. K. Arrest warrant wikileaks founder julian assange. Leaveld free assange to the Ecuadorian Embassy after more than five years. He took refuge in the Ecuadorian Embassy in london to avoid extradition to sweden. That chart has been dropped, but he still faces a charge for jumping bail in 2012 if he leaves. Brazil is vaccinating more than 20 Million People against yellow a buddingontrol outbreak. The World Health Organization says the campaign is the largest ever, and involves using reduced doses in an effort to immunize more people. The Brazilian Health industry says 130 cases have been confirmed and 53 people have died in the current outbreak. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton, this is bloomberg. Julie . Julie thank you, mark. This week, we have brought you the best conversations from the World Economic forum in davos, switzerland. With jimtzker sat down coulter, coceo of private equity firm tpg. They discussed what worries coulter and what an investor investorons why expectations have changed. I would describe the mood here as euphoric. Are you picking that up . There are several layers of moods going on. On the political side, it is open versus closed nationalism versus globalism. On the tech side, there is always a buzzword. This year, it is ai and blockchain. And i always look for underlying themes. One that is intriguing me this year is techlast, which is the backlash against technology. Tech has been about enabling change, and now there are questions about what environment those changes might challenge society. Erik in what quarters are you finding that . Everywhere or in pockets . Jim in many places. Listening to people on the business side, the question of employment backlash, what happens to the 4 Million People whose title is driver . Ecommerce is great, but there are 3. 5 Million People whose jobs are check out. What will that mean economically, and what will that mean in terms of Political Risk . Erik do you find davos at all ful for gauging the markets, or is it a better contrarian indicator . Investor, you have to drive uncommon wisdom. I come here to find out what the common wisdom is. Erik truly an indicator. Jim last year, the dollar was supposed to be so strong, perhaps not so much. I think you have to start with what people believe. This year, there is an extraordinary recognition of the fact that last year, every oecd country grew, and this year, no one is forecasting a recession. Goldman sachs is saying it looks good until the middle of 2019. That is an incredible strong mood. As an investor, that could be a problem, because growth and investment returns do not always perfectly correlate. As interest rises, interest will show up, markets react. And as a longterm investor, i have to begin to plan an exit to the cycle and think about that solution. Erik lets talk about that. Is now the time to be thinking boy, i better exit the investments i can exit while i am able to exit them, before who knows when it is coming, but before there is a downturn . A drop in the pace of the Economic Growth . Jim we have been returning a substantial amount of money to our investors, but the question is where do we redeployed . There is always something to do, but it is different at this point in the cycle. Even if this fiber markets will be ok for a while, i have to worry about four years from now. Datanot want to buy rubber , so buying the market at a high point ahead of a recession is not a good strategy. Erik that is not really what tpg does. Time, thetime to industry has done it. We tend to be industry driven. Where are the items that are changing that will not be so affected by the economy . One thing i am learning here is on media this week. The amount of media across the amount of different channels, from video to blogs to tweets there is a massive change going on, and i am interested how it will play out as an investment opportunity. Erik you want to invest in media . Jim perhaps. Erik at a time when media is going if biggest undergoing its biggest disruption of her . Ever . Be sortedully it will out. We have figured out music, we have figured out netflix, a music leadership in spotify. What how will your business sort itself out . I do not cling to the answers, but it is an interesting time to ask the question. Erik do you think jeff bezos made a smart move by buying the Washington Post . Jim he will have made a smart move, depending on what happens from here. The use of data, aggregation and size, we are in interesting chapter. We want to be careful not to buy the economy late in the cycle, but there is a lot going on. Justin trudeau said never has changed in so fast, and never again will it be so slow. I think that is an interesting idea for investors. Erik you are hitting the fundraising trail again for another flagship fund. What do investors want for tbg did not wanthey the last time you were fundraising . Jim they want returns, which is what we aim to deliver. But what investors are realizing is there is a fundamental shift from the incumbent to the instructor in many, many industries. One of the great things about are set up on the west coast, so we live in the world of disruption. There is constant interest in how we are investing in industry change, and we are in a position for that change. Buying steady businesses and using leverage, not making many changes, today, investors want to know how you are changing your strategy and your companys for the future . Lets call it more specter specialization sector specialization in that variety generaler than a purpose fund like in the past . Jim it was usually organized in the past by a tool. If you look at how we are organizing tpg, we have done a lot more to build our sectors. What is happening in Small Tech Companies certainly shapes what is happening in large, small health care, large. We are building our investment inside not by geography or type of investment, those can be commoditized quickly, but by investment. Everybodyhat about else . Will they continue behaving the way they have always behaved, and you are out here on the west coast doing Something Different . Jim it is always fun to be on our own but not totally alone on the west coast. The industry has proven its ability to adapt and evolve over 25 years, and i think it will continue to a lot. Hopefully they will not listen to the show so they do not know exactly what we are doing. [laughter] scarlet tpg coceo and cofounder jim coulter, speaking with Erik Schatzker in davos. For more on that theme, lets bring on jason kelly, bloomberg executive editor. He has covered this for quite some time. Holderu hear about jim talking about this, when you hear about other people in that industry talking at davos, were there any themes that jumped out at you that the industry is struggling with right now . Jason i think what they are struggling with his finding deals in a market that seems to go up and up and up and up. Obviously, private equity is about buying, but also selling. They need to get in at a point when they feel there is some value that only they see a way to extract, or even just secular. R Company Specific growth that seems to be harder and harder to come by. You see a lot of private equity firms selling rather than buying right now, given the valuations worth. Scarlet with eric started the conversation and said the mood seems euphoric, would you agree with that . That is not good news. Jason not good news for private equity. When you think about the past 10 or 15 years and the last time there was a lot of euphoria around private equity within 2006 and 2007, and we know what happened in 2008 and 2009. It was a real struggle for them to salvage some deals they bought at very high valuations. Some of the biggest deals of all time were done in that period with some good results, if you look at Companies Like hilton. But if you look at other not so good results, to say the least. Tpg was involved in this with tx , and Something Like caesars, which they were also involved in. Scarlet jim mentioned something about looking at media or thinking about media. Some of the players are emerging as big winners, like netflix, and everyone is playing catchup jason . Jason catchup. Jason everybody talk about disruption, but if you look at what tbg has specifically done over the past tpg has come past years, a lot of their investors have come from the growth unit, which have invested in Growth Companies and disruptive companies. They are in uber, airbnb, they took an investment in spotify, which he mentioned in passing. Those have been good to them, because they have tracked in a more not quite venture in area of risk, but in that between Venture Capital and more traditional leveraged buyout. Lbos can be very lucrative, but at this point in the cycle, it is a lot tougher. Julie we will talk much more about dell in a few minutes with alex barinka, but im interested in the perspective that dell might be doing an ipo or structured take public of some kind, how that fits into what you are talking about . Jason it definitely indicates that piece, that part of the cycle where we are. Theyll is a company that went private in 2013 to much fanfare dell is a company that went private in 2013 to much fanfare. The computerf maker, that is about the time, five years on, when a private equity firm starts to say well, we need to get this money back to our investors. They start to think about our their pieces that we have lost to pay down the debt, and return some money here. Do we go public . If it were to go public, it would be a substantial ipo that would kick off and maybe help accelerate some of that. I am sure you will talk with alex about that in San Francisco. But certainly an interesting moment, and a classic moment for pe if they go the ipo route. Scarlet lets turn some of that paper gain into actual gain. Jason kelly, thank you so much. He is the editor of the new covering the pe industry. As we were just discussing, from lbo to ipo, dell is considering the future direction of the company, including taking it public once again. This is bloomberg. This is bloomberg markets, im julie hyman. Scarlet im scarlet fu. From leo to ipo, after four years, Dell Technologies is considering going public again. We are joined by alex barinka, who helped break the story as our deals and ipo reporter in San Francisco. We were just talking with jason kelly, our executive editor who covers private equity, who says that silver lake might be looking at this as a time to exit. What have we learned so far about what silver lake and michael dell are thinking . Alex what our sources told us late last night and we are still hearing more trickling in today is that dell is considering getting this company public. A handful of years, about five years after michael dell and silver lake took this Company Private. If you think back to that time, you will have seen michael dell talk a lot about how it would benefit the company to actually be private as it continued to develop and change and jockey in this changing Enterprise Technology landscape. It has been interesting question to ask what has changed. If you look at the structure of the Company Since 2013, when it did become private, they also went out and bought emc for 67 billion. They loaded up on a bunch of debt, both in the lbo and that transaction. So when you think about the companys development and what has changed, the Cash Development for serving some of that debt has come up in all of my conversations, and also some of the Interest Rate changes , up in terms of cash they will have to allocate to servicing the Interest Rate on some of these loans. Julie what is interesting is that, alex, operationally, the reason that michael dell was interested in bringing the Company Private had not changed. It would be more exogenous him to that are forcing do so, or exogenous to the core running of the business, right . Alex thats right. Pulledour columnists together some good numbers, saying operating cash flow for last year was about 4. 4 billion for this company. About 2 billion which to Interest Payments mitts went to Interest Payments. Whether it is servicing the debt that dell has loaded up on or to jasons point, silver lake potentially considering an exit, some of the folks on wall street think that the sponsor in this situation, as a private equity firm, you are always looking for that actual, real return. They have put about 2. 5 billion in equity commitments to dell to take private and into the emc transaction, so eventually, if equity markets continue to be as strong as they have been, it might be nice for them to take some of that off the table. Thelet talk about some of other options, because the lead in your story is that dell is considering strategic options. Going public is one option, but there are other ways of raising cash. Alex theyll still does hold a sizable stake in vmware, which is a Public Traded Company and has come up in our conversations. It is not clear exactly what that would look like, if some to get merger dell public, and they also have another Enterprise Company they might look to ipo as well. These are all things that seem to be on the table. What i wills to be watching for, the board is set to meet at the end of this month. That is when we think some of these decisions might be made, with the caveat from some of our sources that dell might not choose to go forward. But the fact that ipo is on the table for the first time is a big deal. Scarlet alex barinka, Bloomberg News and ipo reporter. , those vmware shares are searching 8. 5 in todays session on this talk. Investors promising another today, when resort. The Sexual Harassment allegations against the founder, and his denial. From new york, this is bloomberg. This is bloomberg markets. Im scarlet fu. Julie and im julie hyman. A time for a look at some of the biggest business stories in the news right now. 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