>> welcome to bloomberg markets. stocks are beginning to show signs of fatigue near all-time highs. the s&p 500 closed to the 5000 -- 500 level. we have wall street positioning for a contract -- for consumer price revisions. that is get a quick check on the markets where we are talking about the s&p 500. the dow is pretty much flat. let us see if we can slip into gains. the nasdaq 100 showing gains. you have it up about 3/10 of 1%.

remember the love from the ai related stocks are helping out the tech heavy stocks. we are talking about if it can widen. the 30 year yields ahead of an auction that is risky as investors think about the risks of duration. we are hanging in about 4.36 in the day. let us see where we are. new york crude at 75. this has been fluctuating. you are looking at a gain of 2.8%. we are looking at mid-day movers. disney having the busiest intraday gain since 2020 after reporting better than results. you have bob iger issuing an upbeat profit outlook and announced a 1.5 million stake in epic games. i was a former games reporter myself. so i am enjoying that deal. more than 12%. holdings up 55, nearly 55%.

nearly 56% and soaring on a bullish earnings forecast, showing the push beyond smartphones is fueling growth. we want to end on treasuries as we talk about the 30 year auction. $25 billion in more than 25 years. market watchers will look for the demand on the option as it is such an uncertain outlook. we are joined by liz mccormick who discusses. and when you look at the risk investors are facing further on the curve, investors have been wanting the treasury to manage this duration risk. on the other hand, 30 years out is a long time. liz: that is the thing. as an investor if things go bad and there is a flight to safety to treasuries that long-duration means that prices gain quicker. that is a good thing. the risk is that if things go

sideways with yields up a little bit today and things -- and people who bought yesterday are a little bit underwater, file little bit more pain. it is precarious, the 30 year. the other options have gone well, which is a positive. sonali: let us talk shorter, 10 rather than 30 years. if you pull up a chart to 10 days in the 10-year yield it has drifted higher. you are looking around for .15. if you buy at the auction you are underwater already. how much risk is there when you look at the 10 year when that has been something that investors have increasingly been pitching since the end of last year? liz: let us talk about broadly why we have yields going up, it is because we have this concerted push back starting back with chairman powell last week from the fed and other fed officials saying slow down we

will cut rates but maybe not so fast. the market is pushing back when the cuts come, and that has lifted yields after treasury. the 10 year, the rates are higher so you are underwater. that is not good and investors have been saying this is the year we should still buy bonds and it will be better, the worst of everything is over. we are not seeing it yet so people do not want to be underwater. you have to stay the course. the 30 year auction, if it does go well usually does tale, meaning the rate comes higher. if it is a large tale, that will not be received well. more yields increase and let us see how it goes. it should go fairly decently, but we will not know until a little bit after 1:00. sonali: when i look at the shorter end of the curve you are very close to a coin toss for even a may rate cut.

when you talk to sources and bond traders, how much are those expectations earning their current wagers? liz: they do not like it. they are trying to say if i look to the whole year i feel good. i think we will get some cuts so i can take the pain. we came into this year and they were very gung ho, 50% chance at one point that they thought the fed would cut in march. it is not helping and it does not make people feel good to be underwater. a lot of the big macro funds that are longer-term saying look what happened to last year, it was brutal and on the last few months were a huge rally. they are trying to stay the course and the worst of inflation is over and the fed has to start easing and i will be ok by the end, but the jury is out. sonali: i would love to know who is taking the other end of that trade.

thank you for that and we will look out for the auction. all this week we have heard from a slew of central bank officials as they give their view on the timing for rate cuts. i sat down with harvey schwartz and this is his take. harvey: we should not be rooting for five rate cuts, we are wanting an environment that does not want a lot of attention, the base case at two or three cuts. the fed is expected to be sensitive. my personal ball might be as good as yours. we will see what happens. sonali: martin is the chief investment officer at morgan star wealth. you think about the s&p reaction to this idea, a little bit higher for longer, do you think that this will impact asset pricing even more? >> you know, that is a good point. we were just talking about the bond market reaction to this idea of cuts in march where the

equity market was enthused in november and december and the strong rally we had, not only in everyone's favor but the broader market. this year has been quiet. part of that reflects concerns around when the timing of the fed cut is actually going to occur. obviously the jobs data and economic data that we have been seeing has given the fed a lot more latitude to let things sit and wait until inflation data really gives them the confirmation that they want to see, it is the right time. sonali: when you look at the s&p 500 trying to get into the territory of gains but still hanging out closer to 4990, what brings it to 5000 and sustains a? do you think that we are flying too close to the sun? marta: that is a great expression. when we look at what is driving the s&p and what drove it this

year and last year, a lot of it was a magnificent seven and a lot of folks have said the magnificent four. given where the returns have come from. if we continue the same theme and we are hitting market peaks, it will be from the stocks that drive it higher, given the weights that they have. the idea flying too close to the sun, valuation is the way that we look at the world but it is not always a timing indicator except at extreme levels. that is what makes us cautious on tack and consumer and air -- on tech and consumer names. they are priced for perfection. whether they hit that or not there is a risk. sonali: what do you advise? is it a matter of taking profits or do you go to the unloved sectors? marta: i would argue that among the ed baxter -- among the magnificent seven there is some dispersion. when we look at the names more can see indication -- communication services we think

they are better price. some of the cable names but also alphabet, meta, disney, and netflix. not necessarily spurning all of the magnificent seven but it is a good market to broaden out. there is some value to be had from an equal weight perspective if you are interested in some of the deeper value plays within the bank for example or utilities. those are areas that are not priced for perfection and have accounted for some of the risk. sonali: i am really curious to hear about the bank suggestion especially when you are looking at the pains like the new york community bank. how do you avoid the problems especially the way investors are reacting which is to selloff a lot with the bathwater. marta: yes. frankly, that is the opportunity, throwing the baby out with the bathwater. some of them are buying the banks not necessarily in the

same situation as the new york community bank. a lot of that relates to how much commercial real estate exposure that they have. the new york community bank dealt heavily in the new york multi family area. not every bank is in the same position. so when we look at the banks more broadly including regionals and diversified banks receive 15% upside and we think call -- quality screens are important related to deposits and commercial real estate exposure and rate sensitivity. we do think there is an opportunity in history bears it out. it has not been a great long-term investment and when we look at how surviving banks behave in the wake of a bank crisis we actually do see outperformance over the one year and three year. for investors with the stomach for it, this is an investment opportunity. sonali: fixed income, how do you play the market without much volatility? marta: we like fixed income and

we have not said that for a long time. we started last year even if we are looking at the 10 year. really at a fair value at the shorter end of the curve. so we think this is still a market's own fixed income but we are focused on treasuries and less so on the credit market where spreads are tight. if we are going to have some risk on fixed income, it will be in the emerging market space. sonali: the chief investment officer at morningstar. we will talk about new york community bank because it continues to slide as it gets downgraded and explores ways to offload mortgage risks. but can they? it is our stock of the hour up next. this is bloomberg. ♪

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sonali: we know that -- >> we know that there is a recession happening within the office market but it is a question of the broader spill over into the economy, which we think will be manageable. >> you can feel the stress in the commercial real estate area especially in the downtown office. that is the real thing and many banks have exposure. it would not stunned me if banks ended up wrongfooted. but the system knows that real estate is an asset with a certain amount of risk and i hope and expect that we have enough capital to whether that. >> we do not see it as a sector with real opportunity, so there will be challenges. i think this plays out over many years because in some respects we can see this problem. it will a problem that will have to be digested by the markets. sonali: this is "bloomberg

markets" and this is some of the voices weighing in on the commercial real estate sector and it is time for the stock of the hour. shares of new york community bank are slumping after the da davidson cut its ratings. it was also hit with a credit downgrade as moody's moved it to john. let us discuss these concerns with her men and -- and the correspondent who is all over the banks and knows what is going on inside of them. when you look at the new york community bank issue, let us talk about the rating downgrade. how much of a spiraling effects does that create? hermann: this was addressed yesterday morning and the bank management team suggested that there is no direct impact, as of now, if there are further downgrades it could affect businesses like the mortgage and escrow businesses which is a big business for them. more to come, but it seems like

there is not a tangible effect. sonali: we were talking a lot about the idea of being able to buy into the banks because a lot of's -- a lot is being thrown out with the bathwater and morgan stanley is down. is this all new york community bank issues creating a broader sense of negativity or are there other fears that will weigh on the system itself? >> we are not talking about the fundamentals exposure to commercial real estate. there is another big risk overhanging these banks which is investors want to flee at the first sign of trouble. they saw what happened last year and we saw a number of institutions getting hit. you are seeing something similar this time around where investors are looking at other banks with a similar profile and souring on them. that is something the regulators have to drop -- have tackled. they always focused on the $300

billion banks and the risks surrounding it. the question is what happens if there are 103 but -- $300 billion banks facing troubles. that is something that they have to solve for and that is something that you see repeatedly in the banking system where thousands of banks across the u.s. financial system. sonali: morningstar believes that some of them can rally at 15% and some of them are buying into new york community, western alliance, and to those banks deserve this kind of selloff right now? herman: new york community has very idiosyncratic issues. first the exposure to rent regulated apartment is largely a new york community issue. second, the new york community just crossed the 100 billion asset threshold which ushers in higher regulations. the banks that you mentioned are not really in that sort of

bucket. from that standpoint it seems like the issues are more focused on nycb at this point. sonali: one thing we pointed out is that they could offload assets, residential mortgages but it is commercial real estate that they are worried about. is there enough private capital to step in and save the day? sridhar: what they are trying to do is offload some of the risk and free up some capital about a $5 billion market portfolio or may be some sort of synthetic risk transfer so that the risk is transferred away from the bank. and there is some appetite for those things. they had started shopping that even before the problems emerge. they are also thinking about the rv loan portfolio. some of those can still happen. that is not really focused on commercial real estate. there is the ability to carry out some of those transactions but the big commercial real

estate issue would remain a problem for the sector because at the smaller banks and regional banks commercial real estate makes up about 29% of the assets on the balance sheet compared with 6.5% at the big banks. that is why new york community bank reminded us that cre and the big wall of maturing real estate loans will be a problem that we will be contending with for a while. sonali: many investors believe that the cre problem will last year's and it is the most obvious with new york unity bank. it begs the question who else might feel similar issues if not as drastic over the next couple of years. herman: it will affect the entire industry and the regional banks space. we know that there are maturities coming this year, next year and the year after. from that standpoint the risk is front and center and the banks are contending in the regulators are seeing what the banks can deal with. it is a known risk that the

banks have already adjusted for in building their reserves and working with borrowers to see what potential loss content is and how to restructure loans. from that standpoint it seems like we know what the threat is and what will materialize if rates remain elevated. sonali: sounds like a long year. we thank you for keeping an eye on the story. why greenlight capital things that markets are fundamentally broken. we will talk about that. steak with us, this is bloomberg. ♪

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sonali: this is bloomberg markets and i am sonali basak and it time for the wall street beat, my favorite of the day. it is greenlight capital. he says that markets are

fundamentally broken because fewer people are paying attention to individual stocks. he told masters of business that passive investors have no opinion on value. they will assume everyone else has done the work. spoke with masters of business host to joins me now. what does he mean, this idea of animal spirits are being fueled by the likes of blackrock and vanguard passive funds? >> it is nuanced. this is a guy who launches a fund in 1996, crushes it for 15 years, shorts lehman brothers before he goes belly up and then has trouble in the 2010's, not coincidentally a parallel period where we saw a huge influx of capital into blackrock, vanguard and state street. what his thesis was was something has fundamentally

changed, what is it? and they figured out that we have seen short funds disappear, value investors have seen outflows. money has gone into growth and passive and we cannot rely on other value investors to come in after we identify a cheap company and make it rise. we have to change the way we look at the world. over the past five years they have been outperforming. unusual to see this sort of second act. sonali: what is interesting he has having a bit of a renaissance. this is not just in the way he is thinking about value but in merger trades that have paid out. you can appreciate that he is throwing shade not only passive investing but he also starts to critique the quants. barry: it is all about price and not value, end of day options, and the idea that you only care about what happens over the next 15 minutes instead of the next

15 years. obviously there is a place for that sort of short-term trading. it is a key part for what is taking place in the market and specialist space. that said, at a certain point where too many people become passive or high-frequency traders, i think he has identified this has created an inefficiency and the for the first time in a decade or so we are identifying companies generating l5. sonali: how is he thinking about value differently than some of his rivals are or the way he used to? barry: in the old days you would find a stock, the market is 16 pe and here is a stock at 12. let us buy it and tell the world about it and other value investors will come along. now and he gets specific about this, so many value managers have disappeared and value funds are gone. we cannot rely on that so we

will find companies whose quality is so high and use growth rates and cash flows are sufficient that they can return capital to investors either through increased dividends or share buybacks. even if the rest of the marketplace does not figure it out they will have to grow just by the fact that they are returning so much capital. it is no longer about finding cheap stocks but finding high quality and deep value stocks that are growing. that was the pivot and it has been working out for them. sonali: russell 1000 flat on the year. thank you so much for your clot just for your time. you can catch masters of business and his interview with david einhorn wherever he takes that wherever you get your podcast. we will talk to partners capital ceo who joins me to discuss his new deal with general landtag. this is up next. this is bloomberg. ♪ you bring a lot back

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sonali: this is "bloomberg markets" and i'm sonali basak. s&p 500 losing some steam. trying to snap the two day win streak. we have the nasdaq trying to get a lift. for than 50% boost in stock just today alone. keeping an eye on yields. the thirty-year auction coming up later today. the ten-year buyers were underwater from where they bought it just yesterday. yields on the rise. we are also watching oil prices. crude fueling the energy

industry. the s&p 500 is the biggest gain or. shares of paypal are falling after issuing a disappointing 2024 outlook. it is one of the worst performers on the day. wells fargo said it would vindicate the permit bears -- the perma bears. saudi arabia is said to be hiring citigroup, goldman sachs, and hsbc for a secondary share sale for aramco and they would raid to wait -- they would raise $20 billion. aramco ipo raised $20 billion. bloomberg simon casey joins me to talk about the dynamic. $20 billion on top of the $30 billion in the ipo. how significant is the share sale. simon: is going to be one of the biggest share sales ever.

it is a huge sale. we do not know when the timing is. all of it is in flux. the bigger picture is saudi arabia, this is a secondary share offer. the proceeds would go back to the sovereign wealth fund. it is liquidity, it is freeing up cash. the sovereign wealth fund can make other investments outside saudi arabia. the bigger picture is look at the oil price, where the oil price is is not quite as high as where saudi arabia would like despite the opec production cuts. according to bloomberg economics the fiscal breakeven for saudi arabia will be $106 a barrel. we are not close to that. sonali: you mentioned the oil prices and the use of capital and the fact that it would go back to the wealth fund. what is the promise for new investors? simon: aramco is one-of-a-kind.

it is the world's biggest oil producing company. it has reserves that will last as long as humans need oil. it does not compete well with western competitors that trade as higher multiples. it is a little bit of a struggle to attract foreign investors. this will be closely watched. interesting to see how many foreign investors are attracted. whether this is a buildup of political goodwill or local investors step in. sonali: we will have to have you back as the show hits the road. interesting with oil prices and the dynamic today. meanwhile we will shift gears. general atlantic has agreed to buy a stake in partners capital,

a 50 billion dollar manager that focuses on outsourcing investments for institutions including family offices and endowments. general atlantic has been diversifying its base, entering more areas outside of tech like financial services. joining me is the partner ceo. when you think about this general atlantic investment into you are firm, the question is why? why partner with another asset manager? >> thank you for having me. this is a huge moment for partners capital and we are excited about this. talent is the lifeblood of a firm like ours and we are of the view that this partnership will lock in our senior talent and allow us to deliver long-term outcomes for our clients. we have been very intentional about choosing a partner. we have spent more than two years trying to find the right partner.

sonali: this comes at a time were a lot of investors you work with have been thinking about the role of private markets. at the same time there many concerns about many of those sectors. can we zoom in about private credit and where it falls in the appetite for new money deployed this year? arjun: we have been investing in private credit for more than 15 years. it is always cyclical and it depends on the supply and demand dynamic. right now we believe it is a great time for private credit because the supply of capital is much lower than the demand. there's a lot of capital flowing into the space but if we stay at the secure end of the market we think the risk versus returns are fantastic. sonali: what about private equity?

there are so many investors questioning the push pull. kkr and apollo, carlisle and aries foer gissing -- and aries focusing on the credit business. where is private equity? arjun: private equity has been through multiple cycles. we have invested in private equity for more than 20 years. we think we are invested through interest rate cycle. we think there is a real place for private equity over the long run. we think with the light managers generating returns is possible. the key thing is earnings growth will be critically important going forward. multiple arbitrage, buying and expected will go up. we think that game will be hard to play. sonali: such an interesting to

ask about all of these private marketplace. these managers tend to be more expensive than putting your money in index fund. markets have gone one way in the last 15 to 18 months. what is the incentive to pay up for these assets when the markets -- the more liquid markets have held up just fine? arjun: that is history. even through the markets that have done exceptionally well over the last 20 years, private equity has earned about 400 basis points of premium. sonali: relations on inking the general atlantic deal. coming up we will talk to the aries management ceo who joins me in an exclusive interview, his first of the year, as aries

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sonali: this is "bloomberg markets." it is time for the wall street beat. aries management is out with its latest results, shares rising as the company reported assets under management grew 19% year-over-year to $419 billion, topping estimates. the aries ceo joins me now as the stock price hits a new record after a tear last year. when people look at what you're doing at aries, it is pretty notable because you went from zero to 60.

it seems like you've become much bigger than some of your older rivals like carlyle group. what is it they are betting on? is this rising with the private -- is this rising with the private credit boom or is there something else? michael: a lot of the relative momentum is clearly credit, we were early to the private credit markets dating back 30 years. as the market has expanded in terms of real estate and infrastructure and also globalizing, it is been a big tail wind. whether you're talking about private markets or public markets, it is about performance. if you look at the earnings performance over a number of years it stands out for its consistency, but also for its growth on a relative basis. at the end of the day assets follow performance and stock price follows the performance. we will keep doing what we are doing. sonali: i feel the need to push

you on performance and how sustainable it is. there are a lot of worries about credit quality, when it starts to turn. how do you avoid pitfalls and how many pitfalls are there in the market in the world of private credit? michael: i think that story is little overblown. you and i have talked about this before. the structure of the market is fundamentally different than it was 30 years ago. if you go back to the beginnings of this business, the narrative was always there there was risk to the markets. the performance would bear that out. we announced earnings yesterday and the non-approval rate in that portfolio was .6% at fair value, which is well below the industry historical average of 3%. it is quite interesting. the stresses you are seeing in

certain quarters of the market like real estate -- the fundamental performance is still very strong and intact. what is different about the private credit today than decades ago is the amount of private equity supporting these assets and companies is significantly higher than it ever was. if you look at most private credit assets their loan value is between 40% and 50%. that means you have a highly sophisticated equity partner sitting below your private credit instrument that is aligned to performance. i do not expect to see private credit show cracks. i think the structure of the loans is fundamentally more sound than it has ever been. sonali: you think about the market expectation for rate cuts . i am curious about you weighing in on what would happen if we do not get five rate cuts and rates

stay higher for longer. what other kinds of cracks do you see in credit markets at that rate? michael: in real estate you're seeing those cracks emerge. if rates stay higher for longer, which is my base case, you will see modestly underperforming assets have challenges, and this goes back to my prior comment about the value of institutional sponsorship. you have an institutional sponsor of a high-value asset, they will use their capital per -- their capital to protect the value of the asset. if you have a weaker company you may have challenges. if you aggregate across all of the markets, we are at peak rate. we know we will be coming down from here. i think that will be constructive for performance and deal activity. sonali: you think about what is happening in new york community bank, is causing a ton of fears. you've pointed to the idea this

could be a multiyear problem. paint a picture of how that plays out through 2024 and 2025? sonali: it speaks a lot to prior comments we have made about the importance of private markets in stabilizing the public markets. you look at 2023. there was a lot going on and we got through challenging times in the bank markets through a combination of private capital, public capital, and policy. given what we saw play out in the first and second quarter of last year, i would believe these isolated instances would be resolved with a combination of private market partnership and bank capital. i am optimistic. there is enough liquidity to resolve these. it is a commentary on the fundamental difference in the

structure of a bank balance sheet and the structure of an unlevered private fund. when you go through this amount of rate hikes so rapidly it exposes those weaknesses. i think this will help advance the narrative of the importance of the private markets and partnering with banks and the liquid markets as we get through cycles. sonali: new york community bank reported yesterday it is exploring loan sales and other ways to offload risk. would you be in talks with them in a situation like this? are you in talks? michael: i cannot comment specifically, but as you know earlier last year we executed on a major portfolio purchase from pac west. we announced we had partnered with another regional bank on a meaningful risk transfer. i think that given our capabilities in private credit, in alternative credit, and given the amount of liquidity we have

we are a natural partner for any bank looking to reposition its asset mix. sonali: you had the ceo of carlyle group tell me he would not be willing to head into some of the commercial mortgages being offloaded by these banks. we know commercial mortgage risk is weighing on the sector most heavily. is there a place you could step in? michael: everyone likes to paint real estate with one brush. real estate means a lot of different things. if you look at our exposures, what we see given our over indexing to industrial multifamily student housing, there are very big parts of the commercial real estate business that are performing very well even in this rate environment. most of the stress we are talking about will be happening within the cbd office market.

that is a tough place to be. as an example, we just launched a joint venture with a prominent new york real estate partner to begin to look for opportunities to bring capital into that market for class a properties. a lot of this, whether you are talking about commercial real estate or buyouts is about what is the value of the enterprise or the asset? when are you comfortable bringing money in? we will find the natural bottom and the natural clearing point real estate as well? sonali: what is that clearing point? when did things get bad enough for you to buy? michael: we are buying. we are quite active globally in our real estate business. the bulk of what we are doing is using debt-like instruments or debt structured equity to come into these balance sheets above the equity and try to be a good

collaborative liquidity partner, but not necessarily have to underwrite equity risk. part of the benefit of our scale and flexibility is we do not have to have a perfect view on the value of the equity in order to be a partner. that is one of the benefits of flexible capital and opportunistic credit. sonali: it was amazing fundraising for you last year. the second-best you had on record. you are in the market for a record direct lending fund. how much appetite is there for private credit to continue at that pace? where are you putting all this money to work? michael: how much time do you have? we just had our earnings call earlier and someone asked a similar question. without getting too deep into it, the reality is the private credit markets, even though they are having a moment, are still

massively undercapitalized relative to the amount of institutional equity that need some form of private credit solution. just as an example, there has been a trillion dollars in on invested private equity dry powder in the market against $200 billion of private credit dry powder. for all of the attention private credit is getting, there is not enough private credit in the market to satisfy the private equity that is already been raised. putting aside some of these cyclical opportunities we are talking about. i think there's plenty of appetite. the return opportunity in private credit across the different parts of the market is as good as we have seen in a very long time, since the global financial crisis. i think people are seeing the seniority and the structural protection and will continue to allocate. sonali: is interesting. a year ago you and i were sitting here looking at a bank market that struggle to compete

with firms like yours. they were struggling to offload leveraged loans settled on their books. now they look like they are starting to fight back and edged their way into deals. how do you describe the bank versus non-bank dynamic? michael: we have been doing this for 30 years. you can go back. i've been saying the same thing through every cycle. there are moments where the banks are less aggressive in risk-taking or the liquid markets are less aggressive in risk-taking and the private credit markets have the opportunity to take share at the upper end of their size range. then there are times when the syndicated markets are risk on and then you give up a little bit of that share at the high end. transaction activity picks up and everybody wins. given the weight we have positioned our business and the core market for so long. i have always viewed this

opportunity to trade share with the banks at the upper end of the market as episodic. that is not the core business. not surprisingly aires has a large liquid credit business as well. we are a large clo manager. when those markets turn back on we have the opportunity to pivot into that market as well to fund the growth in our liquid business and also drive underwriting. it is not a new trend. it has been like that for the last 20 years will step i would not even -- it has been like that for the last 20 years. they are now in a position to take risk and they will do it. sonali: you see many of these banks, jp morgan included, looking at private credit, either through partnerships, hiring, raising funds of their own. how does that change your market? michael: i do not know if it does. i struggle with what is private credit? private credit is making loans.

jp morgan is one of the largest private lenders on the planet. i look at them as largest lender in the market. if you start trading loans, that it is no longer private. i think everyone is struggling to get a shared understanding of what this is and what the opportunity is. we have been coexisting as partners and collaborative partners with the banks for as long as we have been in business. whether they are taking exposure through syndications and on the sales and trading desk where they are doing it directly on their balance sheet, i do not perceive that to be a meaningful change in the way the markets are structured. sonali: you are certainly rising at aries and rising as a ceo yourself. you are notably on the deal to buy the baltimore orioles. michael bloomberg, who is the owner of bloomberg lp, is also part of that orioles ownership group, who is also -- along with

david rubenstein who is also a contributor to the network. michael: are you offering me a job at bloomberg? is that what that was? sonali: i wonder what you are doing fine the orioles -- buying the orioles. sports have been big for high net worth individuals. what does this say? michael: it says i'm a lifelong passionate baseball fan and have the opportunity to be involved with something like that, especially a franchise that is so long tenured and has such a deep history as the orioles do. i have known david for 30 years and i think he is one of the great leaders in the community and in our business. the opportunity to partner with him behind his leadership is a once-in-a-lifetime opportunity as well. you are right. sports, we have a big sports business at aries, as you know. in a world that is increasingly

divisive and political and tribal, what you begin to realize his sports is the way we come together and rally around shared ideas and values. i am passionate about baseball and what sport means for society and thrilled to be a part of the baltimore family and looking forward to the future. sonali: we thank you so very much for your time. another big year in your world. breaking news. the senate has begun a procedural vote on ukraine and israel aid. republican senators have pushed for amendments to the $95 billion package, which now does not include border and immigration measures. senators say the lack of the border deal will calls -- will cause funding shortfalls for the department of homeland security in fiscal year 2025. will keep an eye all of those

fiscal challenges. that does it for bloomberg markets. stick with us. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way. wealth plan can help get you there. ♪ j.p. morgan wealth management. wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio.

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>> from the world of politics to the world of business. this is "balance of power." live from