sonali: traders are finding little reason to keep pushing the stock market hired to start the week with cpi data and a fed decision next week, a quick check on the markets as a way to digest that data, the s&p 500 is down on the day and tech heavy indices including the nasdaq 100 or even more. .3%. the two year yield is drifting higher, hitting as low as 4.40. the above 4.50.

a four basis point move higher. bitcoin hitting records once again, above 17, we saw some choppy days last week but we are still riding high as we watch for more excitement about digital assets. we talk about the equity side, we are watching meta shears dive as one of the biggest losers in the s&p 500 and it is selling off by the most in october, that is after donald trump suggested a tiktok man would only benefit the social media giant. shares of apple gaining after lagging so far this year due to concern over iphone sales in china. we are watching shares of moderna, surging after starting mid-stage trials of its experimental cancer vaccine and it follows a study that showed patients on the keith roda vaccine -- patients on the vaccine were 49 less likely to

have their cancer return. remember president biden said lawmakers, his physical 2025 budget proposal, aiming to reduce the deficit by $3 trillion over a decade. kailey leinz is in d.c. with the details. >> they do aim to reduce the deficit by $3 trillion over the next decade but that is not say there is not a great deal of spending outlined in this proposal from the white house. 7.3 trillion dollars for fiscal year 2025, 1.7 trillion is domestic discretionary spending or discretionary spending overall when you add up defense and other programs, they're asking for $900 billion for defense-related programs and more than $600 billion for other discretionary programs. they want to offset that by raising more revenue, higher tax rates on companies and billionaires, the president is requesting that billionaires pay 25% in taxes and the corporate tax rate will go up to 28% and

they want to tax more, the profits coming in from multinational companies raise that to 21% and quadrupled the tax company's pay for buying back stock. this budget does propose cutting taxes for middle and low income americans by 760 $5 billion over 10 years and it would fully restore the full child tax credit and other objectives include affordable housing, childcare, universal pre-k and $8 billion to expand the american climate core program. hiring more workers to do that kind of work. the calls on congress to pass supplemental funding request for ukraine and its allies and renewing the requested made last fall for more funding for border security but i would remind you that this budget is mostly political and purely aspirational. it is unlikely with the president's request would actually passed congress without entirely democratic control which does not look like it will be likely, 2025 after the

election in november. the likelihood that this budget makes it into reality is quite low. sonali: how is congress expected to meet the current budget and parts of the budget get the most pushback? >> i would point out that congress still has not passed appropriation bills for the fiscal year, we are almost six months into it and we still have six appropriations bills that have a deadline of march 22nd, addressing the year we are in an outcome that is how hard it is to get any budgetary appropriations matters over the in this congress which is largely dysfunctional and we are having a conversation about next year's appropriations when we have not sorted out the ones before us. that i would keep in mind and when it comes to these proposals that the president is making, investing in things like childcare and universal pre-k, other measures including raising tax rates on corporations, all of those things unlikely to sit well with conservatives and

right now the house is controlled by republicans even if the democrats are able to flip the house and it is likely the senate is going to flip republican after november which is fixed to a divided congress. without control of both chambers of congress, it is hard to get your objectives over the finish line. sonali: thank you for all over it all of the time. let us discuss this with the president of the committee for responsible federal budget. when you first read this proposal what was your initial reaction? >> how will start where we ended which is it is crazy that we have not even finished degree on the budget for this year while we are thinking about next year's budget. my first response is always completely and utterly broken, we need to fix it. it is -- it is a political document, this is not going into effect in any way. the statements are trying to make, this is a budget that raises a lot of revenue. it is very focused on raising

revenues from the well-off and from corporations. it turns around and spends a great deal of that money. it is a tax and spend budget. it is also a budget that does save $3 trillion over the 10 years of deficit savings, it is greatly reduces the deficit, that falls far short of where we need to go. we would need $8 trillion in savings just to keep the debt as a share of gdp where it is right now which is already too high. sonali: how much does taxation start to close the gap? do you think that taxes are really the biggest part of the issue here? which is a bigger problem, taxes or the spending? >> to look at the federal budget, there are different views about what our budget should look like, you want a small government? either of them can be fiscally responsible if you are willing to pay for those policies. the truth of where we are right now with our debt as a share of gdp almost at record levels and are interested payments and

smarter than defense this year which is dangerous. we are going to have to look at every single part of the budget for savings and this budget fails to do that and he gets high marks on being willing to raise revenues but it continues to perpetuate the belief that we are only going to raise revenues on the very high end or corporations and the budget hole is so big it is unrealistic, there has to be larger tax cuts when politicians talk about the truth. the other side of the budget, the spending, that is where our growth is, health care programs, retirement programs, interest on the debt, this budget does do some important savings on medicare, the two big things that it leaves out is they want to extend a big portion of the normal prompt tax cuts and no idea how they will pay for that and they say they do not want to put the details there and they leave social security which desperately needs to be fixed because the program's trust fund will be installed in a decade and completely unattended to, they have principles but no policies.

a budget that does not address the biggest problems and only looks at revenue and increases instead of spending cuts, it will not be something that will get the job done and this does not and it will not be something that works on a bipartisan basis and it were not. that is not budget politics right now. it is a statement of where their priorities are not a realistic blueprint for how to have a physical turnaround which we do need as quickly as possible. sonali: i want to take a listen to president biden at the state of the union, i would like you to respond to what he had to say. president biden: i have been delivering results in fiscally responsible way, we have cut the federal deficit over $1 trillion. [applause] i signed the bipartisan deal. another trillion dollars the next decade. it is my goal to cut the federal deficit by making big corporations wildly -- who are wealthy finally making them pay their fair share. sonali: the committee for

response will federal budget has done a lot of work in fact checking on both sides of the aisle here to kind outlined what has and has not happened. what are the definitions of what president biden has laid out here? >> the budget deficit in past years did come down bite $1 trillion, but that was despite president biden's policies. the deficit improved because we took a lot of the covid stimulus money out of the economy and a stop spending that and it brought the deficit back down along with the economic growth. if you look at the policies of the administration have put into place, they made the deficit much worse. he should not get credit for reducing the deficit. he did indeed sign the physical response ability act which could reduce future deficits -- responsibility act which could reduce future deficits. the looks at domestic

discretionary spending, that is not where the problems are, but he did sign that into law. i will say he was not eager to initially, that was something republicans pushed onto the agenda and luckily it was a bipartisan bill. absolutely true, his budget does put forth $3 trillion in savings , they get credit for paying for all of their initiatives and putting in place policies that would generate additional savings, like i said they leave some critical policies out of the budget and budget has to be comprehensive to tell the full story. we do not know how the story ends until you see how they deal with social security which has to be fixed and what they would do to offset the cost of all of the owner prompt tax cuts they want to extend people making under $400,000. sonali: there is an expectation that the federal reserve cuts interest rates, when you think of the cost of the borrowing and how much it is surpassing so many levels of what we have spent in america every day, how do lower rates contribute to

helping out the problem? >> lower rates which obviously will be determined not based on what they do for the federal budget but how the rest of the economy is looking. certainly, it would help the budget situation although the budget already assumes that rates will be lower. rates have grown because we have been borrowing so much that actually contributed to inflation which then requires an increase in interest rates and because we borrowed so much, the federal budget has been incredibly sensitive to growing interest rates and that is why interest payments are already the single fastest growing part of the federal budget. i'm in a lot of the growth in spending, and only are the note would be larger than defense, they are larger than medicare, financing and borrowing of the past. it is warning signs everywhere. lower rates will definitely help the federal budget but it will not come anywhere close to raising the problem that we have because we have borrowed so much our interest payments are going

to be a significant part of the federal budget until easter to figure out how to stop the growth trajectory that we are currently on. sonali: this is an ongoing discussion, that is the president for possible budget off of the heels of the biden budget proposal. the crypto rally has continued and bitcoin hits another all-time high today. you see it across the stocks in the space. stick with us, this is bloomberg. ♪ ♪ (upbeat music) ♪ an ever-changing landscape comes with challenges. from our vantage point, we see opportunities. as a top-ten real estate manager, principal asset management harnesses the power of a 360° perspective, delivering local insights and global expertise across public

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markets, it is time for the stock of the hour, microstrategy's has bought another 12,000 bitcoin for 821 million dollars and it is the

second largest purchases is acquiring the cryptocurrency and assurance of other crypto stocks are also higher today along with bitcoin which of course we know has topped 72 thousand dollars for the first time, we will discuss this with bailey who joins us now on these stocks and if you think about microstrategy alone, how much more is there to gain for microstrategy with the current run-up of bitcoin and some other catalysts and head for the cryptocurrency? >> the big driver is the proxy of bitcoin, as you mentioned, under 4000 bitcoin over a hundred million dollars to buy more bitcoin and bringing importance to more than 14 billion dollars, it is a proxy, the fact they were able to buying going when it was on the doorstep of a record high shows how much the border bitcoin and cavco industries have to move higher. -- and other industries have to move higher. sonali: what is a difference of

buying into microstrategy or buying into an etf? >> that is the big debate on our desk, if you want to expose yourself to bitcoin why not by the etf and letting michael saylor whose company generates a small amount of revenue generate they point when you look at the fundamental value of microstrategy relative to what is holding is trading at a higher multiple and again, as long as bitcoin keeps moving up into the right like it has been, that will be a bullish signal for all of these stocks. sonali: coinbase, why not the etf? what is driving the press behind coinbase went so many people believed that the etf would eat into coinbase's business. >> you only see coinbase up 4%, you are in line with bitcoin as a whole, you get the alpha generated from bitcoin, your

betting on brian armstrong and the company's ability to expand their crypto offerings and make money off of retail traders trading the stock or trading those assets on the platform and that has been one of the device when you look at this. it is down 25% from its all-time high in 2021. you are seeing bitcoin making record highs, look at it and zoom out a bit, coinbase is still underperforming broadly speaking. sonali: surpassing as a direct listing price, if you think there could be an argument to be made here that in addition to betting on the larger cryptocurrencies with coinbase, your betting on defy? >> that is the big argument and when you look at coinbase and the number of companies fitting into the ecosystem, has been the long pitch of blockchain, how each of these players can continue to grow and expand their offerings. and profit off of that. that is one of the cases in coinbase, as everyone has been pounding the table with that bitcoin and other cryptocurrencies could be due for a correction and obviously turning the volume up and we see

a number of the stocks trading at a larger magnitude to the downside. sonali: live three is back, sort of -- web three is back, sort of. thank you for keeping an eye on the crypto stocks. we talked about a managers after last year's bets. look at what is happening, next.

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sonali: this is bloomberg markets and it is time for the wall street beat. what is buzzing on wall street and the world of banking and finance, we are looking at legendary hedge fund chief george weiss and discuss interesting stories about their fund,? thomas the back story?

-- tell us the back story? >> he is closing the hedge fund, the firm that months before was looking to be acquired. there has been a conversation with william management. sonali: let us take it a step back about george weiss, 81 now, he told investors he is returning cash. tell us more about him and why he matters. >> he is 81 as you mentioned and we are seeing something of a trend when it comes to consolidation. when it comes to billionare founders, they may be seeking liquidity and they may be looking to get out of the business and acquisition could be a good way of doing that. the fund has had some lackluster performance it has not been doing super well and this environment when the risk is about 5% investors are expecting better returns than five or 6% gain. sonali: one thing that is amazing is not just that he was looking for a bible he approached, he reported that he did talk to millennium and as an

englander, you have been all over the story in the talks with them as well, did that have anything to do with each other? >> this feeds into a broader trend when it comes to the consolidation space. you have seen the assets swell in the recent years, they have teams of people and they need more people and the need to deploy that money, you are saying this interest in acquiring other firms and you saw that with millennium and although the deal failed, you saw with millennium approaching as well. sonali: i am glad you brought up millennium, is citadel and millennium the only games in town to partner any more? >> mid to small size funds may be looking to acquired or may be looking to acquire other firms. depends on how much money and cash they have on hand and how they are thinking about the future of the firm and if they are capacity constraint and how

they can invest. sonali: as these funds start to shut her, what are these other firms doing and one thing i think is interesting is seeing senior executive firm weiss jumping to it for example? >> when a firm is closing down, everyone is looking at the talent that the firm has, trying to get the best people and says to are the winners and who are they strong as performers. were seeing one of the portfolio managers job to valley asked me -- jump here, it is not uncommon to see other hedge funds pick up either teams of people or individuals. sonali: the other reason i like to watch the circling talent is to understand their own ambitions, what is the ambition? >> they were one of the underperformers, that is because of their equities unit, the loss of the most amount of money, the macro did ok and the commodities are fine but the equities unit.

forcing a shuffling when it comes to the equities team, hiring some people, some people no longer at the unit and i imagine they are trying to reach the fund and that part of the fund and improving performance so that next year for the rest of this year, they beat their peers. sonali: is there anything else to be taken out of this conversation about what is happening with a shovel within the hedge funds. what are you looking out for? >> what this means for compensation, what this means for pay structure, how people are thinking about the future of their firms and in the newer dynamic, of firms getting bigger, what does that mean the midtier firms? sonali: she is all over it and an interesting time in the hedge fund world, either consolidation or closures are certainly circling of talent. let us get a check on the markets, i have been saying it is another down day, down more than 1/10 of 1% and the 10 heavy

industries facing more an decline, nasdaq 100 down .3% and semiconductor index is down 1.3% . we watched volatility in those semi-stocks as of late and the russell 2000, down one half of 1%, also volatile in this environment, i want to flip up the board and looking across assets because we are watching the two year yield even further, up to 452 on the day, we got as low as 4.40. bitcoin is still on the rise, up 4.5% on the day, also hitting fresh records about 72,000, we are watching gold getting a bid come up with 1% and the bowe bergdahl index largely unchanged, the dollar been an interesting play this year, a lot of budget talks in washington about more discussion on that head as well as markets ahead of the inflation data,

combat and state for the close -- come back and stay through the close. this is bloomberg. ♪

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