Brought to the up and rising stars on wall street and the legends out there. Kate kelly is here covering all the big movers out of the events today. Kate, we have a long list of movers to cover. Thats right. Maybe ill just start with carson block from muddy waters. He presented a short on bank of the ozarks. They were down 14 in the opening minute or two of the presentation. He thinks hes worried about the unfunded loans within the real estate portfolio among many other things. So that was a really interesting case. Creton polleymer. That is a chemical company. That is a pong position presented by david rosen. And that popped about 8 or 9 on his thesis. Way also heard a remarkable presentation from larry robins of Glenview Capital. He had a really rough 2015. Reportedly has had a rough start to the year, too. Hes known for his prowess at picking Health Care Stocks. If you like the fundamentals but not the stock price, hang in there. I have no actionable ideas today is what he said. Yeah. His presentation was interesting. He made the metaphor of a boat in rocky waters. If you want a stable boat go, this way. If you want to go through the waters, you go another way. It draws on the notion that a lot of investors had a very rough 2016 which is a running theme throughout this conference. Thats right. Its very self aware to talk about this. He had a very humbling letter to investors about how he failed at his job. You know hes at a reflective point. One other thing i quickly point out, john corey from long pond, he was talking about hyatt hotels. I saw they were a little bit down even though he is saying theyre undervalued. He thinks they have a great business and hotels in general right now are very undervalued. And the slide that caught my eye is he estimates about a 65 upside on the bullish case for hyatt shares which is huge. Right. Enormous move predicted there. Back to carson block and muddy waters. Short bank of the ozarks. A big ten anlt of his short thesis is that its a rollup company. Where have we heard that before . Valeant pharmaceuticals. Yes. The notion of rollups and how difficult it is to value that business. Right. 3 billion market cap. Interestingly, the person that following john corey who is talking hyatt, hinted at the beginning of the presentation that he liked that thesis, too. Suggesting that maybe hes in the stock as well the short as well. But, yeah, the rollup idea, not looking good according to block. Hes concerned about the Earnings Growth potential. He thinks theyve done creative accounting. If you look at them, theyre really out there. So again, not different business model, similar type of critique. What are the big presentations coming up . Cnbcs exclusive broadcaster of the conference this is content well only see here on this network. Thats right. David einhorn always entertaining. I know hes long natural gas in 17 and 18. He thinks prices will come up. Also he recently talked about yelp as something he is bullish on. We may hear about. That he may surprise something out of the blue. Jeff gunlock, always great to hear. From hell be on the air as well, i believe. He will talk, im sure, about the bond market. He avoided junk last year. Also recommended looking at puerto rico paper, that is kind of if you think about the income you would have taken on the coupon versus the decline and face value, youre even there. That is a tough story there right now. Kate kelly, well let you get to it. Well see you later. Reminder, david faber will be along with larry robins in the next half hour. Fantastic. Thank you. Letds go to phil lebeau. Lets bring in a live picture from washington, d. C. , the national highway trast Safety Administration is announcing what was first reported yesterday afternoon, a recall of between 35 and 40 million vehicles with faulty takata air bags. Havent millions already been recalled . This is an additional 35 to 40 million vehicles. The problem is that air bag inflators may fail. This means that roughly 23 of all u. S. Vehicles are now impacted by this recall. Either in a previous recall of 28 million or the new recall of 35 to 40 million vehicles. Lets put this in perspective. The recalls going on for some time now, these are because we had 11 deaths related to the air bag deflators that dont work. Still no root cause, however, of why those inflators do not work. The mod thalz are impacted date back to 2001. Were not going to run through all of them. There are too many to list. 14 automakers impacted. By the way, tyler, this latest recall is being announced because there are so many of these vehicles being recalled, theyre phasing in the recall through 2019. Theyre eventually going to get the vehicles repaired but theyre prioritizing which ones based on the region, where theyre located and the models. Those will be the first ones repaired and then eventually all of them will be repaired. Back to you. Phil, how do i know whether my car has one of these . Will i get a notice . Youll get a notice eventually. The easiest thing to do, go on the national highway traffic Safety Administrations website. Put in the vin. It will tell you if the car youre driving is impacted. The ecb will stop issuing the 500 euro note in 2018. Existing notes remain in circulation. So this is only stopping the printing of new notes. There is concerns about large notes making it easy for terrorists and money launderers in a world of negative Interest Rates, cash has real value. If you keep your money in a bank, they give you back less n fact, thats why the Swiss Central Bank announced earlier this year that large denomination 1,000 frank bill is here to stay. Despite International Pressure to get rid of it. Get back less if i leave money in a bank. With negative Interest Rates, right . So its natural to take some out. Thats why there is an increase in the number of safes sold around the world and think about it if, you have it 20s versus 500 notes, it takes up a lot more space. Interesting story. There were following also another developing story out of russia. Hundreds of millions of email addresses and pass words have been discovered by a russian teenager who lives in the middle of nowhere. This is a potentially scary email hacking story of Cybersecurity Firm is saying that potentially hundreds of millions of email accounts have been compromised and that data is floating around on the dark web. Here are the details coming from a firm called hold security. Hold security says this hacker in central had 1. 17 billion stolen email credentials. It turned out that 272 million of those credentials were, in fact, unique. Now most of them were on the russian email system mail but also gmail, microsoft, and yahoo accounts affected here. I talked to alex holden of hold security who told me a very strange and unusual story about where this data came from. He said he was in contact with a person who appears to be a very young man or a russian teenager in central russia who said he had access to this data, Security Firm wanted to see the data and the teenager said if you want this data, you have to like my russian facebook page. So they did. That they put a couple votes in on website called vk. Com which is the russian equivalent of facebook. And in exchange for those votes on his social media page, this hacker turned over that data to the Cybersecurity Firm. So a very strange one here in the firm says its troubling that this data was out there in the first place. Unbelievable. Thank you. Day by day, the sib areaward stories get more interesting. Donald trump is the likely gop nominee. On the democratic side, theoretically, its still up for grabs. Hillary clinton holds a strong lead whether you consider the super delegates over bernie sanders. So if donald trump locks it in and hillary gets the democratic nomination, what does this mean for your money and Investment Strategy . Lets bring in michael farr and david seeberg. Let me start with you, michael assuming hillary becomes senator clinton becomes president. What should do you with your portfolio and what happens . What should do you with the portfolio if donald trump becomes president . Right. Michelle, this is really an election where all the old rules are up. I mean, republicans typically vote pro business and they typically vote republican. And they stay away from the democrats. This may be different this time. Hillary is kind of a more known entity and probably being more welcomed to wall street. Trump is saying that hes going to be protectionist. Hes going to perhaps a trade war with china. Were not sure about the mexican wall and other policies. Hes going to cut taxes a whole bunch. So i think you have to listen with almost a new set of ears to these two candidates. But certainly, hillary is talking about doing some Different Things like raising the minimum wage. That would be good for a lot of the consumer stocks. We saw Health Care Stocks not do very well last fall when hillary came out and suggested that drugs were too expensive. Typically as candidates begin to move to the middle, that rhetoric will quiet. Pharmaceutical stocks have done okay. I think you really have to take a look at the numbers. I wouldnt overplay a negative pharmaceutical market for an example under hillary. Okay. David seeberg, you have any recommendations based on what could happen when the general election finally does happen . Yeah. I mean, i agree with him on the health care side, on the biotech side. We have seen a lot of displacement in the names obviously destroyed based on the fact that people are are fearful about drug pricing. I think under Hillary Clinton, correct . Yeah, correct. With the tweet she started and threw out there about drug pricing and how shes going to go out after the companies. I look at it and say once if she is elected and i think the setup could occur, before the biotech tape has been absolutely pricing in the worst Case Scenario under the circumstances. So i think if there is any pull back under that scenario, its a absolute buy. I it this rhetoric has probably caused enough of the selloff. You take a stand, you buy them there. I think that in general, infrastructure is going to pick up across the board. But again, i question, you look at a lot of the banks. I think the banks and brokers under any scenario, under any scenario are probably going to struggle. I probably would stay away from them. Yeah, due to a lot of regulation that we keep hearing about. Yeah. Thanks so much. Michael and david joining us on this day when were getting closer and closer to figuring out who is going to be on the ticket. All right. Some would argue we already are. Were starting on power lunch. Coming up, our interview with larry robins. Power lunch will be right back. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing e. T. Phone home. [ soft music ] when you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Welcome back. Im joined now by larry robins, the founder and ceo of Glenview Capital management. Nice to see you. Nice to see you. Thank you for supporting this conference. Were happy to do it. Its been a tough year by many standards including for you. In your presentation, you sort of talked about staying the course and kind of describe things. I wont get into it. Ill let you do. That why stay the course . At what point do you start to question your judgement when the markets seem to be saying something very different . Sure. At analogy that we use and famous for sports analogies, the analogy we use is investing is like going tubing. The boat, you have to determine whether the boat is going the right direction as our investment growing . Are they doing well fundamentally. There are all the waves of macrofactors, worries about Hedge Fund Ownership and redemption of worries and the high yield market and whether it will function or implode. All those things that created choppy waters and securities, as you know, we tend to be a longer Term Investor that not only the average hedge fund but average investor and Holding Period is four years. So there are periods and unfortunately we sat through one between august and the middle of february where being an invest or that is muddied up. To your point, if its intact, we have to hang on and get where we want to go. So you close to do just that. I wonder though, along in the difficulties that you have, you mentioned being a long Term Investors. There is such a focus on short term. Do you find yourself questioning your judgement . Sure. Any time you see a down day or months, it causes us and others to say is there something that market see thats we may be mising . Is the view out the front windshield somehow more cloudy . That could be because of industry factors, regulatory factors, economic factors, et cetera. And no portfolio we own about 100 securities, no portfolio is going to go 100 for 100. Youre always going to find times with the new information you realize that we need to abandon ship. That we need to sell that security, admit we were wrong and move on. Thats an ordinary course of the Portfolio Management function. What is extraordinary in this period is the dichotomy between how companies are doing which in general, our companies our portfolio grew 10 . The s p 500 earnings were down, too. And our stocks went backwards. While there were exceptions and we had mistakes in the portfolio last year, by and large, the companies are doing well. Theyre doing what theyre supposed to be doing, deploying cash flows and building long time value for shareholders. Its the external factors that created the noise. So while well question ourselves each and every time we see a stock price dislocate from fundamental value, more times than not that encourages us to either hold on or add to our positions as well as to constructively engage in the companies. In particular, of course, given the pro pond rance of Health Care Related stocks, you got hit hard. Even though you may not have owned the names that were actually the reason perhaps that investors soured on the group. Yeah. But the names do you own that ive seen you own for a very long time whether its the name like anthem or even thermo or tmo, lets start with anthem. Big deal coming there. The group has got hit over the last year in part because of some of the things you discussed. Do you still believe the deal will occur and why are you still a buyer here at this price . Sure. So lets go back to the original concept of why did health care equities get dislocated . At the end of the day, it is Good Business and good Public Policy. You need to do one of two things. You need to increase quality or access to health care or you need to decrease costs or as a health care provider, theres going to be headwinds kpetive in government and regulatory headwinds. The reason why the Health Care Sector came under pressure is because a small handful of companies tried to make money for their shareholders doing neither. By increasing dramatically the price of single drugs without increasing the access to any of them without increasing the quality of care to any one. Why do we think that the anthem deal will go through . For the same reason that the express scripts deal went through many years ago. Those people that are managing the cost and delivery in the case of the pbms and the case of cigna and anthem today of managed care costs and spectrum, they will use the increased scale to deliver lower prices and Higher Quality solutions to providers because to customers because they can use the scale. You think the humana and aetna deal, do you think both will be approved . We think both will be improved. Again, we dont want to presuppose we want to let the doj do their job. The majority of states have already signed off on both deals m people who looked at it said on pure case law both deals should close. But on Public Policy, they realize there is legitimate Public Policy concerns about any consolidation and health care given some of the concerns weve seen in pharma and pharma pricing. Having said that, the Public Policy situation we have today is that the insurers are losing 6 billion over the last two years in these new Affordable Care act exchanges that the majority of the coops, small mom and pops have gone bankrupt f theyre going to be vibrant and function and be able to offer americans low cost insurance through the exchanges, they need to have a cost structure they can do that. Therefore, our independent analysis would suggest that these consolidations would actually be aligned with Public Policy rather than opposed to them. And even though there should always be great scrutiny when you see six Major Players including the not for profit blues go down to four. We think that customers are actually better off because on their bee half the managed care players with get them better deals. Larry, as always, we could go on. But were out of time. You and i can talk. Thank you. Thank you very much. Larry robins from Glenview Capital management. Still ahead, another big guest, bill gross, has a big warning about the future of america and well get his thoughts on the election as well. Plus, its a product thats been used in households and on babies for generations. Now a jury says its linked to cancer. That story is next. A good car has to maneuver quickly. Thats also true of a good car company. People have always bought cars. But we saw an opportunity in sharing cars. So we moved fast and launched car2go in 29 cities, all around the world. Doing that required dozens of data centers, designed for speed and performance. We built our business on the i