vonnie: we have seen the s&p give up some gains. we are looking for the record potentially by the end of the year of 4713. the two year yield has been doing a bit of a round-trip. this on the back of weaker data, potentially data that could help the federal reserve. annualized pc came in -- pce came in weaker than analysts were looking for. crude oil up about one percentage point as angola says it is leaving opec. not entirely unexpected. we are drowning in oil.

the vix index above 14. nothing to get crazy about but it's higher than it's been for quite some time. i want to look closer at the s&p 500. a two-day chart. talking about the big chart in yesterday's day. you see a dip a little in the last hour. we will see how that plays out. speaking of this action earlier, peter tier expressed doubts about the effects options are having on trading. >> one thing that triggered me is probably overnight i read how yesterday everyone wants to play zero date expiration options for why we sold off. three of the last four days, from 2:00 to 4:00 we had weird spikes. when people highlight something as a culprit it tells me everyone is long and is looking for an excuse of why they were wrong yesterday. i think there is more staying

power to selling pressure right now. vonnie: let's discuss with abigail doolittle. dealers trying to square their positions. perhaps these large moves. is it really odte option calls? abigail: when you have a selloff that is so quick -- we had been up about .2%, not a huge amount but we had been in this big rally that has taken some indexes up into a bull market. out of nowhere you have this massive selloff. the index had been up about 2% an hour and half later it is down 1.5%. investors and traders want to know why. i quickly called a few traders. chris murphy at susquehanna said the rumor is it is odte. he was talking about the idea all that is priced in. everybody knows about them. it could be a pop instead of a decline. to really influence markets it has to be a new trade. he's not buying it either. he things markets have

understood and digested those zero date options. vonnie: it seems like a little bit of a new phenomena. we have not seen this for years on end. it's only in the last year we have seen this expanded version. have a give --abigail: that's one reason less. n last year people were blaming the vix. it had been at a handle prior to going higher. when we think about yesterday we had this massive rally and a lot of people not believing it, not believing the fed talk out there. in some ways people were expecting it to some degree. on the other hand, you also had this big talk about it. everyone -- there was an air pocket. i had just noticed the rsi on the s&p 500 had been the most overbought since 2020 during that rally. i was trying to put out a note

and i noticed the s&p 500 dropping. by the close it had been at a 66. the day before was an 82. that is the degree of the -- how excited folks were for the rally. then creating the air pocket for a selloff. vonnie: it was pretty substantial. we had seen something a little bit like it today with a big move in the last hour but we are still positive. abigail: the question is what is next. peter, i would agree with his opinion that we could see more selling. we have this massive rally. folks are worried about valuation. in terms of the technicals there is a little topping pattern similar to july. a fancy way of saying the buyers got tired and the sellers want to step in. today's by the dip -- buy the dip, it is not robust buying. i'm not saying this is necessarily the case. bear market rallies of the best rallies. if you go back to 2000 eight,

the s&p 500 put in a series of higher lows. at the time i was not doing this. i was doing it in another capacity. i was in finance. just those whipsaws. everyone got excited about them up and down. similar situation now. the nasdaq 100 put in a new high. i'm not saying there's a bear market ahead. when you have a rally with so much fervor to it there is a lack of steadiness, of stability. it is not surprising we could backfill to the downside. technically we are confirmed on the s&p 500 to go back below 4600. this powell pitted, his own rally would go away but the heart of it at the end of october is to be seen. vonnie: a lot to digest and makes for exciting trading sessions between now and the in of the year which you often don't get. abigail doolittle, thank you. tomorrow we will get pce inflation data that could submit the case for lower interest

rates in the coming quarters. it follows gdp revisions to 4.9% in the third quarter. that showed softer growth. weaker economist projections. let's discuss it with brelina uruci. we had softer data we were looking for in a lot of areas. the gdp annualized revisions came in and they would have been to the fed's liking. initial jobless claims. does this submit powell -- cement powell's pitted. -- pivot. brelina: the crucial information was the downward revision to the price index, the core pce price index. it showed core pce on a quarter on quarter annualized basis stood at 2% in q3. that is back in line with the fed's inflation target. we know the fed is paying attention to the momentum and

inflation. three-month and six-month annualized measures. what we learned today is that inflation measure that is the fed's target has come in line with its 2% target for the economy. tomorrow we will receive more information about inflation trends in the u.s. economy. it will be the print for november and we are getting into q4 data. expectations are that for a two tense increase. -- 2/10ths increase. that will give further ammunition to the dovish fed, that they are getting there on their inflation fights with the pce measure. we are not seeing the same progress on cpi. i think that will give them more

confidence to lean into this and prepare markets for cuts in 2024. vonnie: that is just it. if we see a disappointment tomorrow in a lower number than economists are anticipating does that give credence to the market pricing and practically 6.5 cuts next year? brelina: i think it remains to be seen if those cuts will materialize in the base case for the fed. it makes sense for the markets to priced these cuts from a weighted probability of different scenarios. i don't have a recession in my baseline. probabilities increase for 2024, i don't see evidence of the data to believe that now. we may even get more than those cuts. as a baseline the market is probably priced too much as a weighted probability of different scenarios. it may be fair. receiving more good news on inflation tomorrow i think may lead markets to lean even more

into rate cuts into q1 of next year and we may see the probability of a january cut pickup with pce. vonnie: if we compare the beginning of the year to now we are exactly where we are on the ten-year. on the two-year we are slightly richer but only a couple of basis points. so much has happened with the economic outlook this year. are treasuries correctly priced right now? brelina: this is a good question. we need to keep in mind two things here. we are getting some progress on inflation, more than the fed expected. i do remain concerned about core services actual to her -- but we are getting information from the fed in terms of its reaction function. we know they are going to respond to the deceleration in inflation because they are

focusing on real rates. they want to make sure real rates do not increase at sick -- increased significantly in 2024. they want to make sure real rates decline as inflation comes down. this is how we need to look at market pricing through this lens. if you look at it through this lens and the information the fed has given us for its reaction function, i do think rates coming down makes sense. it does not square very well with the resiliency of the economy but the fed told us that they will take the resilience, but assume it is coming from supply-side improvements as long as the deceleration of inflation is sustained in the next three to five months. vonnie: mohamed el-erian was saying on bloomberg television to get to 2% inflation and not higher you need massive service disinflation. you need to accelerate pretty quickly.

we cannot keep seeing this deceleration in goods inflation. you mentioned shelter. is this another portion of the economy and gdp we need to be looking at? brelina: i think the housing sector has been an interesting one. we did see a very sharp increase in mortgage rates back in 2022 and housing activity has collapsed when you look at sales and starts. prices have not fallen very much at all. affordability is pretty bad because of high prices and high mortgage rates. i think this tightness in the housing market has spilled over into the rental market. i think that is why people have been disappointed in their expectation that shelter inflation will decelerate a lot this year. we have not seen that being reflected in the data. it may end up being more delayed in 2024. you look at what's happening in core services ex shelter and we

need more softness in the labor market for that the pickup. -- pick up. it will be interesting what happens in the middle next year. there is probably not enough to get the fed to start cutting interest rates. whether we will see all the cuts that are priced in their baseline, it still an open question. vonnie: we did not see that much softness today with both initial jobless claims and continuing claims coming in lower than forecast. brelina uruci, thank you so much for your time. coming up, paul dergarabedian of the likelihood and impact of a merger between warner bros. discovery and paramount global. this is bloomberg. ♪

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vonnie: this is "bloomberg markets." looking at shares of paramount global and warner bros. discovery. shares down for both companies after people familiar confirmed the media companies had talks to merge. let's discuss with senior media analyst paul dergarabedian. what are the immediate consequences you could see of maybe more merger talks and potential for a merger here? paul: i think this is really one of the biggest challenges for the industry right now, these market forces that are driving all these companies to look at potentially merging together. there is so much fragmentation out there. there is mutual challenges and these competitive forces affecting all these companies. to be able to have paramount and warner bros. come together, they

can combine their streaming services. this also could lure comcast nbc universal to the table. i think the immediate implications that people will be talking about this more because it opens up the door to having more merger talks between these massive media companies and for the consumer this will have an impact as well down the road. vonnie: you have a division between analysts. on one hand you have berkeley saying these are two of the most challenged assets across legacy media. some of the parts idea would not help either of them. it would be pretty much a disaster. there will be no buyer for paramount of this doesn't happen. when you have people like martin saying this is a fantastic idea. what side of the coin do you land on? paul: it depends on what this does for these companies individually. if you look at a player like

netflix that has almost a quarter of a billion subscribers, disney plus just over 100 million, then you have macs that has close to 100 million -- max that has close to $100 million. if you combined power houses they are a bigger player in the game. as some analysts are saying that can present challenges. it's an opportunity as well. i think it speaks volumes as to how volatile the market is. i mean that almost in a good way. with all -- in terms of streaming they want to keep churn to a minimum. by combining on the consumer side it might help. it gets very confusing as a consumer. i am among them -- to figure out where my shows and movies and programs consolidate. baby helps pricing to the consumer but the jury is out on how this will ultimately play out. these companies are not only

during this reach other. they are giving it so their competitors can see was going on. they will be a lot of merger talk in 2024. vonnie: this would actually be a step towards reconstituting an over-the-top version of the old linear bundle which would be quite ironic if that is what were to happen. is that potentially the future, paul? paul: it could be. the air i grew up and we had three major networks and a pbs station and that was it. now today we are met with so many amazing choices but that presents a conundrum. how do you decide? i look at this more from the consumer side than from these companies. -- companies' point of view. what do the consumers want? some kind of old school bundling combined with new technology? look at that due to the future? we don't know yet. we are in a transitional period. there is the big screen movies

aside. they have very important and robust movie divisions. big screen, small screen, all screens. those are the things that comscore looks at. for all of us, analysts and press folks, everyone who analyzes this, it will be an amazing year in 2024. vonnie: together if it were to happen in is just a big if at the moment they would have one of the largest ip library combinations. it would be quite stunning. would that be good for the consumer or bad? with a face regulatory challenges? paul: there is that obviously. for the consumer it is great. i think most people gravitate towards whatever platform has the content they want. particular show runner or show or a movie library. i think that is very compelling. if it's all a one-stop shop to the consumer, that's great.

at the end of the day this is going to be, i hope, good for the consumer. some analysts think this can raise prices. it's about content, price sensitivity on the part of the consumer, as well as how this will all play out over the next year or two when all these changes are going on, not only in the consumption of entertainment by consumers but how all these companies fit into this global ecosystem of entertainment. vonnie: it would have knock on effects for disney and these other companies. speaking of which, who will win the christmas holiday box office? paul: right now there is a bunch of movies opening. aquaman, migration, ferrari, the color purple. there are seven wide release movies opening between now and monday. on monday there will be at least three films opening in wide release. i think we will not know who wins the box office derby until we get into 2024.

with all these movies they are all compressed into a short timeframe. we will not know until the dust settles in january who wins the box office. who ultimately wins is the movie fan and the moviegoer. there are so many great films out there. vonnie: always a pleasure. paul: you don't want to forget aquaman. vonnie: nobody can forget aquaman. paul, thank you for speaking with us. senior media analyst paul dergarabedian. this is bloomberg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it)

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vonnie: this is bloomberg markets. before we hit the extended holiday weekend we will get the latest reading on the fed's preferred measure of inflation, pce. if released friday morning. this data coming on the heels of the u.k. inflation numbers out earlier this week that showed price pressures easing more than

expected. chancellor of the exchequer jeremy hunt spoke with bloomberg's lisa abramowicz on the u.k. inflation outlook. have a listen. >> we have had a lot of discussion post-brexit of people, banks, operations potentially moving out of london but it has not materialized anything like the scale that people predicted. london has shown itself to be very resilient. if you look at what's happened in the last year, we have shown we are hungry to people that business that has come to london. we are very committed to financial services in the u.k. we passed the financial services market act. we are changing the rules for prospectuses and for all sorts of rules around ipo's to make a london stock exchange more competitive. it will unlock a lot of capital into growth businesses from pension funds.

we are really motoring in the u.k. we are hungry to attract business around the world. this deal was switzerland is just another step in that direction. lisa: how much are you looking to some of the revenues to be able to enact tax cuts? you were talking about tax cuts coming down the pipe. where are you planning to have those tax cuts? willoughby with the savings or other areas? mr. hunt: rishi sunak and i said we would like to cut the tax burden more if we are able to do so. we will not be in a position to do that until much closer to the spring budget. we have announced the date for that -- we have not announced today for that yet. we will not find out the latest from the office of budget response ability to know what we are in a position to do that for some time. we would like to bring down the tax burden in a way that is

responsible if we are able to do so. right now our priorities to bring down inflation. vonnie: that was u.k. treasury secretary jeremy hunt speaking with lisa abramowicz. let's look where we stand. we are putting back on a few points on the s&p 500. help .4%. 4717 after we had a little drop in the last couple of hours. waiting actually for 2:00 p.m. to see if anything happens like it did yesterday. we saw a precipitous drop in the last hour and 30 minutes of trading yesterday. we have the nasdaq up .6%. some companies making 52-week highs, including meta and salesforce. we also had the dollar index weaker today which is helping things. it is below 102 on dxy. coming up, jett mccandless of project 44 on the red sea conflict and the impact on the global economy and oil markets.

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jon: welcome to bloomberg markets. vonnie: let's start with a quick check of the market. the market does not want to give up on hitting a fresh record. s&p 500 up half a percent right now even after little bit of a selloff for a prolonged dip in the last hour and a half. we may indeed see the record before the end of the year, although we are waiting for the last hour and half of trading because we were blindsided yesterday when we saw the move to percent towards the close. vix index. you knew things were happening under the hood. it is about 14, a long way from 12 where has been laying around. it is now showing exactly what is going on.

there's a lot more going on than we think. the two-year yield has gone from 429 to 435. 434.95 now. crude oil, in spite of angola saying it's not a member of opec anymore is up about .2%. jon: we will talk more about that and we will talk about nike earnings that are coming up to the bell. it's been a busy week on the earnings front. yesterday we were previewing micron. the stock has been hired today by almost 7%. some of the demand for their business has justified some who were concerned about the outlook. we are looking at a nice move higher from micron. blackberry out of canada, another story. shares are down 13.5%. revenue falling short of expectations. the new ceo is prioritizing a lot more cost-cutting. we will watch that story play out. let's look at other earnings stories. heading into earnings season

wondering about whether or not we would see enough performance to meet wall street expectations from carnival. that turned out to be true. shares up about 6% now. regional amount of travel activity. carmax up about 4%. the company is navigating the fact that higher used car prices can impact consumer demand. maintaining higher prices did help their profit margins, as did some cost controls. vonnie: the outlook for global trade is in flux as shippers and retailers deal with twin crises. the panel can out as being -- by drought. 180 ships have diverted around africa or are awaiting instructions to avoid attacks in the red sea. listless into our guest giving takes on the situation. >> we have five of the world's largest shipping companies shifting operations from the red sea. >> a number of companies saying

we are no longer going to ship through it. >> a ship was attacked on friday. we decided to pause passage through the red sea. >> there are durable threats the shipping and the military vessels that accompany them. >> attacks on most on a daily basis. that is certainly not safe. >> every week the transit of the area is difficult. we will have a big impact on trade and trade rates. >> this is not going to be regionally contained. there's too much opportunity for rogue actors. vonnie: let's discuss all this now with project44 founder and ceo jett mccandless. jett, we had the creation of a multi-global task force in the area spearheaded by the united states. yet it is not enough for these shipping companies to put their people back on the sea. how long will this take? jett: that's an interesting

question to try to answer. i would say as long as the houthi are able to cause damage to merchant ships that are passing through. there will be disruption and the ships will continue to go around the cape of good hope. i think we will see -- jon: sorry about that. jett: traffic will still go around africa. jon: in terms of how businesses should navigate some of that near-term uncertainty, what is the best course of action going forward? jett: they should prepare to make the supply chains more resilient. they should be thinking about what type of investments they are making in their software, specifically with their supply chain logistics department. these disruptions are happening more and more frequently when you go back to covid or last time there was an instance where the suez canal itself was blocked. every time these happen the businesses that are better

prepared with a resilient supply chain and made investment in technology always do better than their peers that are not making those investments. they should expect prices to go up and inventories to be depleted or lesser. vonnie: what are you seeing at project44? you track more than one billion shipment annually. we saw some coming is like ikea and abercrombie and fitch detailing how they are trying to get their supply to their consumers in a different way. how much of what you see is affected right now? jett: it's very significant. 30% of containerized global trade goes through the suez canal. it's about $9 billion of goods a day that goes through. over $3 trillion a year. very large numbers on that scale. manufacturers, retailers, auto, oil. everyone will be impacted by this. seven days up to four weeks because of unaffected delays

start to shake out and we see the downstream impacts inland. we will continue to see that. companies should be prepared for higher rates and more delays as long as this continues. jon: what about for the consumer? what should they be prepared for? jett: i don't think it will help on the inflation side. higher rates will get passed on to the end consumer or it will impact corporations' earnings. that will not play until q1 of next year. someone will have to absorb the costs. the shipping lines themselves will be able to pass this on. the research urge we saw cma start that yesterday. the consumers themselves, fortunately it does not impact the holiday season but there is going to be some impacts that will mean likely higher prices and more delays. vonnie: we saw the dry index

actually the -- absolutely spike but it's come down quite substantially now. is it possible that calm has come work is coming to the markets because we have not seen an attack and hopefully we will not see more but we have not seen some in quite some days. jett: i think what you are seeing is a lot of vessels have rerouted. the only vessels that are going through the red sea right now are the vessels that are not destined for europe or north america. these are vessels that are going to china or india or somewhere near there. those vessels seem to have safe passage. there is operation prosperity garden taking place which is 10 navies helping escort the ships through safe passage. there's a lot of confusion around that program. there is not enough ships. will be a convoy, a screen of

battleships to try to protect ships? a lot of uncertainty will continue to happen here. you mentioned 180 ships that have been rerouted. we will continue to see more ships rerouted and extended transit times. jon: we appreciate those numbers for this developing story. thank you for joining us today. jett mccandless, founder and ceo of project44. this red sea situation h aving ripple effects on oil and angola leaving opec. we want to bring in julia fanzeres. you have those two stories and you also have the u.s. production story. so many moving parts in the market right now. julia: there really are. what is pushing markets a little bit higher is you have disruptions in the red sea. markets are lower today for two reasons.

we saw a record u.s. production yesterday and the eia report. two, we saw angola leave opec. there might be more production coming out of angola and coming into the markets. earlier this year we saw that angola was upset with the production cuts that opec had because saudi arabia wants to keep prices higher, around $100 a barrel. other countries are happier with $60 to $70 a barrel. that is why prices are going over. you have the heightened u.s. production but also the potential for more supply coming in from angola. vonnie: angola is tiny in comparison to other countries. it's truly important but where will it sell to now? julia: it's important to note that even though it's a small country people are trying to examine what that means for opec as an organization. javier bloss did a great job in his column to point to the fact

that we should be looking at the uae to see if they will do something similar. they have also been upset by the production cuts. while angola is a smaller country, looking at what this might mean for the future of opec is still incredibly important. vonnie: julia, thank you so much. coming up, all eyes on china is we await nike earnings after the bell. this is bloomberg. ♪

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jon: this is "bloomberg markets ." time for the stock of the hour. we are keeping tabs on nike. we are watching the stock after the bell tonight on the company reports quarterly results. the shares have enjoyed nice

momentum of late. analysts are standing were optimistic. the state of the economy going forward is always a wildcard. not to mention performance and a key market like china. those are trends we are watching. john edwards who covers retail will also be watching it. he joins us now. it feels like some of the same issues were at play the last time nike reported. one of the difference is the stock had a big move since the last quarterly number. john: that's right. it might take a big thing to keep the stock performance moving but everybody will be looking to china for sure. last quarter their sales actually cooled a bit in china. down for 20% growth. -- down for 420% for growth. the management was so bullish that people are expecting some big numbers there. bloomberg intelligence looking for possibly low double digits in growth in china. that will be a big focus this evening.

vonnie: u.s. apparel and leather production volume fell 11% in the quarter. what does that tell us? john: the u.s. has been tougher nike and others -- tough for nike and others. it might be a trouble spot. what people are focused on in particular is direct to consumer sales. they are focusing more on that as they try to reorient in that direction and pull back on some of their wholesale partnerships. vonnie: how much of this is a consumer story and how much is a nike story? we have been hearing this for months and months. we also know that in china the consumer is hurting a bit. john: a lot of it is the nike story in terms of their inventory management. that's another focus. they showed some strides last quarter in paring their inventories which had been a problem for them. we are watching to see if they continue that improvement in the

most recent quarter. i think on china they are feeling like even with the slowing economy they are well-positioned to continue taking market share there. jon: what about the broader north american landscape? the consumer landscape? everyone tries to figure out where the economy is going from here. john: it's a little tough. the most recent retail sales were surprisingly strong. while the consumer is being selective in what they are buying, things with particular appeal are still moving. nike is pretty well-positioned in sporting goods and sports apparel relative to its peers. it is growing sales, especially in its women's category. it's a fast growing area. that will be something to watch,

whether they are managing to grab some of the sales even as consumers get pickier. jon: on that note can you give us an update? they have a well-known former e-commerce leader who came to the helm of the company about how big a digital push they have made and how that has assisted the company. john: yeah. it's been an increasing focus there. they are trying to get more and more of their sales out of that digital channel. really a for sizing sales through their app, sales through their website. also trying to maximize sales on the brick-and-mortar side through their own stores. pulling back on some of those outside relationships. yes. digital is definitely an increasing focus for them. we will be watching to see significant growth they are relative to the brick-and-mortar side when they report.

vonnie: nike shares up nearly 4% year-to-date only but that includes a nearly 20% increase since the end of august. really fascinating stock story. thanks to john edwards. coming up, how banks are planning to secure a lucrative role in private credit. this is bloomberg. ♪

jon: this is bloomberg markets. time now for today's for what it's worth. how about $1.6 trillion? total assets has now surpassed that amount. that could double in the years ahead. things are racing to get into the action. that is the focus of today's big take. jp morgan and citigroup looking to adapt their leveraged lending businesses to capitalize on that

boom. obviously, a big number tied to a big trend. vonnie: exactly. let's discuss with ranesh ramanathan. talk about how this is working and how are the banks able to get in on this without making any rules, regulatory wise or agencywide? ranesh: i think we are seeing this at its nascent stage. banks are still trying to figure how they want to play in the market. as paul pointed out in her article, i will give her a shout out, this is a situation where banks are trying to find a way to replace the fees they lost in the leveraged lending business as priv -- private credit becomes the dominant player. finding a way to not deploy your own capital. banks have a significantly higher capital charge being

assessed to these riskier assets. it is what they are all trying to do. at this point it is very much a throw the spaghetti against the wall sequence. vonnie: are there any big risks? could anything go wrong that might be systemic? maybe not to the banks but to the plumbing. is it anything like the clo craze? ranesh: we need to recognize private credit is not new. private credit has been around for decades. it has taken different forms in different markets. we are just seeing greater prominence today in private credit because of the tightening credit markets and rising interest rates. companies need capital, right? this is not a new product. that is not a highly levered product. it's a situation where unknown risks are being taken. these are sophisticated players who have been in the market for decades and lending to companies like this over a long period and

have a solid track record. jon: as the bloomberg big take story also highlights you alluded to this. if you are not part of this trend do you lose out on other lines of business? everything from cash management to m&a advisory. how much does that end up being part of the story? ranesh: i think that is the tricky part that banks are trying to balance today. their relationship with the customer is much deeper than the private credit relationship with the customer. fx, hedging, other facilities they provide to a borrower. a private credit lender is looking at this situation as a credit relationship. i am lending to you. i'm taking a certain risk and certain security over that. i mx. beckoned get paid. that is the full scope of the relationship. thanks are realizing if they can no longer lend they become less

valuable to that customer. they want to prove their value to the customer by being a one-stop shop. the place where you can get all of your banking needs taken care of. that is what they are trying to balance in these relationships. jon: on that relationship subject as on that relationship subject as well, what is the relationship look like if banks are partnering with some of these specific funds that are being set up to capitalize on the private credit whom right now -- boom right now? the banks had not been providing some of that lending in the first place. ranesh: it is a very symbiotic

relationship that you could see between the banks and these credit lenders. it is a mix of who has the money and who has the relationships. the credit lenders have a lot of capitalize -- $1.5 trillion market today and only growing from here. the banks have the relationship. if you are a company in the midwest and you are looking to raise money, looking to borrow money for an expansion for an add-on acquisition, you know how to call your neighborhood bank. you know how to call jp morgan and citibank. you have no you had a call bain capital or carlisle. the banks acting as a bridge to build that relationship between the borrowers who don't have the access and the private credit lenders who do have the capital and are willing to lend in that space can be a beneficial relationship. vonnie: who is going to decide

on what interest rates are charged in the fees charged and who pays what to whom? ranesh: that will be part of the relationship between the bank and the private credit lender. figuring out how to manage the underwriting process, the terms of the deal. as we mentioned in the article, how you manage when you are faced with a default situation with the bank may have a different incentive than the lender. all those are things that may need to be worked out differently. jon: really great perspective. thank you very much. ranesh ramanathan breaking down the private credit story in the public equity market. we have obviously seen investors continuing to keep tabs on the s&p 500. not getting too far at this point away from those previous all-time highs. we are watching what happens as we roll into the close and as we mentioned earlier we have those nike earnings to be watching as well. i'm jon erlichman for vonnie

quinn, this is bloomberg. ♪

romaine: pointing the finger and valuing the dip. live from studio 2 here in our headquarters in new york, i am romaine bostick. scarlet: and i am scarlet fu. stocks took a breather while bonds kept rallying. today, stoxx resuming their rally while bonds take a breather. the s&p 500 at 47 24. russell two thousand gaming double what the s&p 500 is on