sonali: welcome to bloomberg markets. we are going to get you a check on the markets here, we have a market that is looking to get into some gains except you have the s&p 500 down 1/10 of 1%. we are also looking at the nasdaq 100, still in the green as well, and the philadelphia semiconductor index is up just ahead of those long-awaited nvidia earnings. the dow jones no longer holding onto the 40,000 mark.

we are 2/10 of 1% lower. pulling up the board, looking at the bond market across asset classes, you have a bit of a move two basis points higher, back to 485 on the day with the 10-year hanging flat just over that level. gold, taking a breather, here, 1.2% lower on the day, crude also lower on the day, a 77 handle, 1% lower on the day. we want to bring you also some breaking news from across the pond. rishi sunak will call for an election for july wording to the guardian. we have livvy burnham outside of 10 downing street with more. what is the latest? lizzie: here we are again, downing street, waiting for the prime minister at his lectern.

various announced -- various july 4 announcements for the election, that's what we are expecting. why? not the autumn, as westminster has widely expected. 2.3% was the inflation data this morning. in the eyes of the prime minister, that's back to normal, back to the 2% target, or close enough to call this general election. markets were reading it a different way, betting on a june rate cut from the bank. rishi sunak clearly debts -- clearly deciding now is the time to hedge his bets and go to the polls. sonali: i want to ask you what brought us here, but i also want to talk about the mood. where you are, what's the mood right now in england? lizzy: if you watched our coverage through brexit, boris johnson standing down, the

protesters always like to come out on big days like this. the mood in westminster is very exciting. more and more press have come to downing street as the speculation built throughout the day that the prime minister would be calling the election. you can hear the prime minister's -- the protesters calling for the tories out. rishi sunak wants to extend their 14 years in power, labor wants to take over. it would be the first win for the party since 2005. sonali: thank you for your time and reporting, lizzy, outside 10 downing street. we will discuss this with bobby and john from bloomberg opinion. bobby, sitting here today to look at this moment, tell us how we got here and what it really means. bobby: the tories have been in power for 14 years. a substantial number of

britain's have sort of lived, have seen their incomes go up in recent months. they have seen inflation rates come down in recent months. he's counting on people feeling that things are about to get better. labor will be expecting people to remember how bad it has been for a very, very long time. inflation, the rate at be down now, but prices are still way up from where they were five years ago and you get much less for your income, now, then you would five years ago. that's where the competition is going to be. do people feel optimistic about the future or do they remember how bad things have been? sonali: we will get to that in a moment, but weeks away could potentially mean volatility. what do you think of the investor reaction, john?

john: it had been worse than people than expected where the chance of the rate cut has down -- gone down, if you believe the markets. there has been very little move since then that i can identify, as these rumors have become more substantial. basically, i think, because the polls have been very consistent for a very long time. it would be a huge surprise if the conservatives are still in government after this election. it has been the base case for any sensible investor for the better part of a year that we will see labor in power. there are all kinds of other interesting questions, but basically, we assumed this would happen. sonali: what are the questions? john: first of all, does cara somma get the majority without

the need to join in with someone else? if labor has strengthened as much as they appear to have, like in scotland it's much more plausible they could take it on their own, but it's difficult to model. the scottish system is effectively difficult -- different from the rest of the country. if the s&p holds firm, it's harder to imagine keir starmer getting in with an outright majority. there was the experience of 2010, david cameron getting the most seats but needing to form a coalition with the lib dems to govern. that wasn't necessarily the most positive experience for people, but it is also perhaps the single most similar election to this one, in that it was very

obvious that people were ready to boot out labor at that point, it wasn't clear that there would be something similar with keir starmer now. bobby: this dynamic here over what people will remember, the good times or the bad times, how do you start to answer that russian? bobby: we will find out over the next few weeks but polling suggests that people are more confident in the ability of labor to manage the economy, which is quite a surprise, because historically the tories projected themselves as better managers of the economy, but polls suggest they think that keir starmer will do a better job at the economy then rishi sunak. 14 years is a long time. there is bound to be a degree of tiredness in any system, never mind a country that has gone through such upheaval over the last few years.

sonali: to that note, taking stock of the u.k. budget -- budget in the state it's in? john: there doesn't appear to have been much of it, but i'm not sure if that is the fault of rishi sunak, jeremy hunt, or anyone else. the situation is not easy. i suspect one of the reasons they might be deciding to go in july, rather than waiting until the fall, was that there had been a hope that the budget would have improved enough that you could have had some kind of giveaway in the autumn. that is looking less plausible. if the treasury had said look, there's no way that we can sugarcoat the economy later in the year, the calculus shifts towards going now. picking up on what bobby was saying, if you want an analogy,

the problem is that when it comes to economic problems, economic embarrassment, electors have a very long memory. now, the liz truss imbroglio was still two years ago and was as bad as it gets in terms of an awful unforced economic crisis. the most similar thing i can think of to that was black wednesday, 1992, 4.5 years before the next election, when the pound was forced to devalue. over the next four years, the conservatives did turn around the economy beautifully. tony blair inherited something very nice. people just never forgot. going with the conservatives because something like black wednesday or liz truss isn't going to happen and if it does, they won't forgive it. sonali: it's interesting, when

we talk about the burden of the physical state in the u.k., there is an amazing chart on the terminal right now with a top live on the terminal going about the decisions being made in the u.k.. the tax burden is still heading for a postwar high. the chart is significant here. to the point you made about voters, how are they feeling about that? bobby: not well, not good, especially since prices are still high. there was an attempt to try and paper over that a bit earlier, when jeremy hunt announced the production reduction in some taxes, but it didn't really take . most of those, taxes will be higher again next year. the impact was not really felt by most people in britain. it's really hard to pin your hopes on one piece of data and the events of two or three

months when people can still feel the pain that they have done for the last 5, 6, seven years. i'm not sure that the message that things are going to get better is going to work quite so well for the tories. it might have been one thing if the voters did not have faith in the opposition, but it has been a long time since labor managed the british economy and people seem to think they should get that chance. sonali: thank you both so much for your time and experience covering these markets. of course, the best in bloomberg finance, economics, finance, and government affairs. stick with us, we will bring you the press conference from rishi sunak himself. stick with us through the break. this is bloomberg. ♪

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sonali: we are now going to cut to the prime minister, rishi sunak, in the u.k. delivering his remarks. p.m. sunak: i can't help but reflect that my first introduction to you was four years ago, i stood behind one of the podiums upstairs behind me. i told you that we faced a generation defining moment and we would not be judged by a government action, but by the all acts of kindness that we showed one another. you met that challenge and then some. i have never been prouder to be british. when i introduced the furlough scheme, i did so not because i saw a country in need of desperate help, although we were, but because i saw a country whose future hung in the balance. i could be bold and trust in the tens of millions of you at home that you would rise to the

moment, or i could accept the inevitable millions of job losses and pick up the pieces. in truth, it was no choice at all. i have never and will never leave the people of this country to face the darkest of days alone. you know that because you have seen it. as i did then, i will forever do everything in my power to provide you with the strongest possible protection i can. that is my promise to you. because for so many of us, it is easy to forget the scale of what we have been through. hit by a pandemic that upended normal life. who would have ever thought that the government would tell us how many times a day we can leave our house. just as we were recovering from covid, war returned to europe, the prudent invasion of ukraine -- let me put an invasion of ukraine sending energy prices -- vladimir putin invasion of ukraine sending energy prices

skyrocketing. success is the measure, be it defense of the country, or arise in public services. because of our collect sacrificing your hard work, we have reached two major milestones in delivering that stability, showing that when we work together, anything is possible. our economy is now growing faster than any protected, outpacing germany, france, and the united states, and this morning it was confirmed that inflation is back to normal, meaning inflation will ease and mortgage rates will come down, proof that the plans and priorities i set out are working . i recognize that it has not always been easy. some of you will just now only start to feel the benefits and for some night still be hard when you look at your bank balance. but this hard-earned economic stability was only meant to be the beginning. now the question is how and who do you trust to turn the

foundation into a secure future for you, your family, and our country. now is the moment for britain to choose its future, to decide if we want to build on the progress we have made or risk going back to square one with no plan and no certainty. earlier today i spoke with his majesty today to request the dissolution of parliament. the king granted the request and we will have a general election on the fourth of july. it will take place at a time when the world is more dangerous than it has been since the end of the cold war. russia is waging a brutal war in ukraine. vladimir putin will not stop there if he succeeds. it's made it clear our risk to energy security. in the middle east, forces of islamic extremism threaten regional and global stability. tensions that were exploited by extremists who seek to undermine our values and divide society here at home.

china is looking to dominate the 21st century by stealing the lead in technology. migration is being weaponized by hostile states to threaten the integrity of our borders. with these uncertain times, we need a clear plan with bold action to chart a course to a secure future. in this election, you must choose who has the plan. who is prepared to take the bold action necessary to secure a better future for our country and our children. i cannot and will not play -- claim that we have got everything right. no government should. but i am proud of what we have achieved together, the bold actions we have taken, and i am confident about what we can do in the future. we have tackled inflation, controlled that, cut worker taxes, and increased the pension by 900 pounds, seizing the opportunities of brexit to make this the best country in the

world to grow a business, putting records amount -- record amounts of funding into the nhs, making sure that they are training the doctors and nurses that they need in the decades to come. our children are now the best readers in the western world. we prioritized energy security and your family finances over environmental dogma in the approach to net zero. we fully funded the increase in defense spending to 2.5% of gdp, deciding to invest more in local transport that you actually use rather than endlessly plowing more money into hs2. we reformed the welfare system to make it fair for those who pay for it and for those who need it. immigration is finally coming down and we are stopping the boats with our rwanda partnership. we will make sure that the next generation grows up smoke free. i have heard that my work since i became prime minister shows that we have a plan and are

prepared to take old action, necessary for our country to flourish. i stuck with that plan and have always been honest with you about what's needed, even when that is difficult, because i am guided by doing what is right for the country, not what is easy. i cannot say the same thing for the labour party. i don't know what they offer and in truth, i don't think that you know, either. that is because they have no plan, there is no bold action. as a result, the future with them can only be uncertain. on the fifth of july, keir starmer or i will be prime minister. he has shown time and again that he will take the easy way out and do anything to take power. if he was happy to abandon all the promises he made to become labor leader when he got the job, how can you know he won't do exactly the same thing if he were to become prime minister? if you don't have the conviction

to stick to anything that you say, if you don't have the courage to tell people what you want to do, and if you don't have a plan, how can you possibly be trusted to lead our country, especially at this most uncertain of times. over the next few weeks, i will fight for every vote, i will earn your trust, and i will prove to you that only a conservative government led by me will not put our hard earned economic stability at risk, restoring pride and confidence in our country, with a clear plan and bold action, delivering a secure future for you, your family, and our united kingdom. sonali: lizzy is outside of 10 downing street with more.

we just heard from the prime minister there, and when we think about what he said, he cast uncertainty around the labour party and spoke to his own ability to recover the u.k. economy, promising that mortgage rates will come down, acknowledging that people who are looking at their bank allan's is may still be having a hard time. on balance, what about his message do you think will carry him into the july elections? lizzy: well, drowned out by the old labour victory anthem, soaked by the rain, the prime minister has chosen july 4 for the election date. why has he chosen july, when no one in westminster was really expecting it? lots of reasons. economic, first. no coincidence, today was the day that inflation fell to 2.3%. in his eyes, that is back to normal, as he said.

ironically, not so eyes of the markets, paring their bets. as you heard him there, he sees this as a moment to say that we have delivered on the economy. as you mentioned, the cost-of-living crisis easing for the british people. there are also physical reasons as well. he and the chancellor had been hoping to deliver more tax cuts in the autumn but recent data suggests there might not be enough wiggle room for that. the imf confirming that as well. there are also political reasons for this. technically, july the fourth is in the second half of the year, as he had promised right up through prime minister's questions this afternoon. it will also be before the parliamentary recess. and of course the prime minister will have had an eye on the polling and the pole gap of the labour party over the conservatives, which doesn't seem to be closing.

so, he has chosen this is the moment. july election could also coincide with the first flights of asylum-seekers to rwanda, letting conservatives make their case for migration clampdown. a core focus in the campaign. finally, sonali, never underestimate the element of surprise. it's a card that he, not usually a risk taker, is playing today. sonali: thank you for your time their reporting outside of 10 downing street, a rainy day, a lot of protesters there for this large moment in the u.k.. we are also turning to david westin on wall street week, because there are massive investor implications when we think about what is ahead for the u.k., with a lot of turnover in leadership in the u.k. over the last couple of years. how do you think about investors think about his tenure? david: remember the liz truss

fiasco? he restored economic stability but didn't mention that it was members of his own party that he had restored security for. he has stabilized things. investors would all have to agree. but when you look at the parallels and the differences between the u.k. and the united states with simultaneous elections here, like president biden he wanted to remind us of how bad it was in pandemic, coming out of it, and how much better off we are today, emphasizing stability and security, something that joe biden will be emphasizing in contrast to trump. at the same time, it comes down in the end 2 -- do we think we will be better off with one person or the other? it was interesting to me that he really hit on -- what is the plan for keir starmer? i have heard that from some, we are not sure what his plan is, unlike -- thinking back for a minute -- tony blair when he

came to office, his plan was clear. sonali: less than a minute here, but he called this the most dangerous time since the end of the cold war. how will the rest of the world be looking at this moment? david: when it comes to ukraine and russia right now, the position of the u.k. is terribly important, but i don't know to what extent voters vote on national security rather than their own pocketbook. sonali: thank you for your time, david. a massive vote being called for in the u.k. with rishi sunak addressing voters in the u.k. on a rainy day, meeting with dozens of protesters outside of 10 downing street, promising the future of inflation cooling down, meeting targets, with the economic situation easing for voters in the u.k. as he takes on labor later this summer. stick with us through the break. more markets are add and all of

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sonali: this is "bloomberg markets," we are going to get you a check on the markets here, starting with the big indexes. the s&p 500 is about flat on the day. interestingly, nvidia reporting after the bell and that's a big art of the gains we have seen this year, yet you see the nasdaq 100 holding onto gains for the day, albeit less than before, up 1/10 of 1% higher. the two-year yield is now at 486 on the day. of course, now we are also looking at the 10 year and we want to look across assets where we have been talking about what

has been happening in the u.k., where we are looking at the pound. as well, flipping up the board here, it is standing around 127 on the dollar. we will keep an eye on currency moves for you as the day progresses. of course, we know that some of the drama is already behind us. the u.k. prime minister called for a snap election for july 4 and just addressed voters and investors, of course, with anna edwards in london with more. your perspective, very curious on what you think the implications are for investors. anna: you can see that we have a bit of strength and the pound that came through this morning and it was all about the inflation print. the markets in terms of u.k. assets not hugely moved for a couple of reasons. firstly, there had to be an election at some point this year, the question had been the date and now we know the date, july 4. the other being that compared to

other electoral geographies where people go to the polls and other times in history, you could argue that there is perhaps a little less at stake. there are the two options less likely or the candidates who could win the general election, looking more similar this time than previously. it wouldn't be a huge surprise if markets remained unmoved at this early stage of the campaign before things get started. sonali: how much risk is there? p.m. sunak: if you are think -- anna: if you are thinking of the likely outcome, the opposition party is definitely ahead in the polls. the conservative party that was first in power, in there since 2010, they have 25% of the votes in polling. if you are looking at that as any kind of indicator, it certainly tells you something about where this could go and many people have been talking for a long time about what a

labour party in power might mean. we haven't had a labor government in the u.k. since 2010, since david cameron took power for the conservatives. the last time they swept to power was 1997 and it was interesting watching the live footage of rishi sunak speaking at downing street, getting wetter and wetter, covered in rain. we were listening to him speak and hearing all of the ambient noise, the crowd noise and the music being played. the song being played is a reference to 1990 seven, widely considered to be the labour party anthem back in those days. a lot of people trying to make those links back to 1997. sonali: thank you for your time and analysis of what's going on over u.k., we are watching it closely. back to the markets, analysts saying smaller banks are continuing to seek risks and that is of course in the commercial real estate arc at because defaults are picking up

and we are still in a higher for longer environment in the u.s.. we will be joined now by nancy liz sheen, managing partner, with abigail doolittle. u.k. to u.s., the potential for cooling rates, the idea that it might be cut this year, how much of an easing with that create on the market you operate in? nancy: no question, investors will -- there will be a giant sigh of wahoo. not so much because of the rate cut, but if investors start to see a trend towards lower and more stable rates, that will make a big difference. abigail: you have touched base with over 2000 institutional clients as a boutique advisory capital real estate firm. what is the sentiment out there towards investing right now? i imagine it has everything to do with rates, likes and ali just talked about. nancy: to be honest, it's mixed.

we started out the year with a fear of being early and a fear of missing out. i would say that in the last few weeks we have seen people moving towards the fomo side of the balance. one thing we have seen recently, the increase of notable large transactions. secondly, uptick for the first time in almost two years in appraisal values, which is very important for the open end runs and the larger investors. three, in our own transaction volume we are mark -- looking at portfolios with more and better bids coming in. abigail: what is driving that? this uptick in fomo? yields going after the last fed meeting? nancy: they are no longer going up and there is 400 billion dollars in dry capital on the

sideline, an enormous number, bigger than the entire private capital real estate markets after the great financial real estate crisis. there is so much capital on the sidelines, people are looking for something to do. sonali: speaking of something to do, there are shakeout's happening with some people looking at some parts of the market saying let's go there, then looking at other parts and saying it is still too risky. if you think about where the people are still the most hesitant, where would that be? nancy: no question, office is the word no one wants to talk about. i could talk with an investor and office won't even be mentioned. our job is to be trend spotters. this year, the trend over the last couple of months has been the one thing every investor wanted to talk about is data centers.

last year, for context, it was industrial outdoor storage, which is logical. if you look at the performance of those sectors, they outperformed on a relative basis. abigail: the perfect segue. i don't know if you are aware, we are all on hold for nvidia earnings. i know you are aware, i see you shaking your head. what role is ai, if any, going to play in the commercial real estate space? data centers are a piece of that. nancy: absolutely, and they take a huge amount of capital. it's a major topic of conversation. one thing that no one is talking about, for example, is what impact will augmented reality have on office building owners and the landscape of what you see? think about times square and the value of the signage that has

been put their. 25 years ago, office building owners didn't have signage revenue. so many things can change. there's definitely a lot of conversation but not a lot of knowledge. sonali: i hear you on the 400 billion dry powder on the sidelines, but data centers have been a huge area. the biggest names. do you still think that in some areas like that, the hottest areas, there is still too much money chasing too few opportunities? nancy: the demand for data centers today is certainly increasing and that is significant. we are looking at not just hyper scales, but what we call co-location or edge centers, multitenant opportunities where the networks come together. think about 60 hudson street in new york city, buildings like that. there is so much more that has to be done, i don't think it is too much.

sonali: thank you so much for your time, nancy, and abigail, all over this real estate market. we want to bring you some breaking news, viking global investors, their chief investment officer, is leaving the hedge fund after almost two decades to start his own firm. for their own part, according to our reporting, viking is naming justin walsh as the next cio of the hedge fund. it's of course a big move in markets and investing at the top of one of the larger hedge funds. coming up next, switching gears to talk about the state of the consumer and retail ahead of tjx earnings. we will stick with that and their rivals to see how they are faring in this environment. that is up next. this is bloomberg. ♪

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>> we are expecting 2024 to look more like 2021 in terms of quality, because not only is the credit market competing amongst itself, but there is a lot of refinancing around the public leveraged finance market. fees will suffer. sonali: that was the moody's had a private credit earlier this month, bringing us to the wall street eat. money flowing into private credit, more investors are now asking where is the most risk?

we have a guest with some views on the market who joins us now. when you have this much money coming in, it raises the question -- is there too much money coming in? >> private credit will likely continue until the music stop's, but small >> are starting to show. look at the pickup in default rates that are likely to be higher on the private side. remember, a lot of companies with risky credit ratings have migrated from the public markets into the private markets. so, i think the >> are starting to show with emerging dispersion. it's quick and it won't break tomorrow, but i think if you were paying attention, it is hiding in plain sight. sonali: what is hiding in plain sight? where's the most risk that investors are not paying attention to? >> the more that

you talk to people underwriting these credits and monitoring them, the more that they say that the underwriting standards have gotten weaker. we can see everyone else with lax underwriting sentiments, but not myself. we are solid. but if you look at the leveraged loans, the spreads, massive competition coming in. banks are back, leveraged loan markets are back. with a supply demand imbalance in credit and many more people looking to put money to work because they are ok with relatively high yields, despite the fact that most of it is rates, you are finding that you are generally seen bubbles emerging in a number of places. they are not big, they are not features, but they are emerging and it's the inevitable consequence of so much money coming in and people needing to compete like auctions to get the business done. sonali: is that a short way of

saying that there is too much money chasing too few deals right now? >> yes. these spread funds look amazing. then it's look at the in yield, 75% of that is rates. the extra risk that i'm taking on top, perhaps less in the senior but particularly on the junior end of the capital structure, is it worth it? is the excess return commensurate with the additional risk? it's important to put a spotlight on this now, ahead of when we could see more general problems. especially if we are in an elevated rate environment, which appears to be more the case going forward. sonali: to that end, you said small >>. when do those become bigger c racks? >> you had the break of the

monetary transition mechanism with inflation coming down and we have bumps on the road. it's working. you have gas in the economy with a lot of fiscal stimulus, deficit spending. there's a lot of liquidity in the economy. if the consumer starts to spend less because they have a long time where they pay more interest expense and debt servicing expense, you could see the cracks exacerbate. number two, the elevated rate environment, no one has a crystal ball, but if you look at treasury with fiscal stimulus and deficit, you know, still high, it's likely to keep the rates elevated and what that does is the longer you have this time, the greater the pressure cooker on capital structures. then you will see these cracks getting bigger, basically. sonali: so if there are cracks forming, it raises the question of who you like. you used to work at apollo.

would you invest in a new private credit today? >> the folks with distressed expertise, they will be looking at this with a good lens. when the dust settles on this vintage, those kinds of people are more likely to do well. what i find most interesting is possibly not buying into a diversified portfolio now, but waiting a bit because of the maturity coming up. there's wave after wave of maturities coming up in the next five years. if you overlay that wave, where you are seeing defaults pickup, you are looking at individual companies in individual sectors and you will find a lot of better opportunities then we see today with less compressed spreads, more alpha, more return per unit of risk. i think that is the most exciting place to be, looking at the maturities going forward in

funds like this and other places. sonali: you mentioned the syndicated market but you have the flexibility to invest in anything today. if you were choosing between private credit and loan markets, where do you put your money? >> honestly, it is loan by loan. things that are heavily competed in a private equity auction, you think that even if i like the name, the spread is just too thin, right? i'm looking at how much alpha i'm getting on the individual lane. i still think that the people doing private reddit are doing a really interesting job of originating and i think there are plenty of pockets there, but i really think that we should, head of the serious issues, people should be thinking about that maturity coming up for that i think i've read it probably a better place to be, if you are selected. sonali: when does that come?

you said wait for maturity to come to fruition, refinancing at higher rates, these companies. >> if it stays elevated it will be more attractive to the investor than today. the wave starts relatively small over the next year or two, tens of billions rather than hundreds of billions, picking up strongly over the next few years. if you don't have to put your money to work today, that is a smarter place to be. remember, it's not enter capital, not like it's ok if some loans work out and others don't, the band is more or less defined. because you have a capped upside, it's better to be selective. sonali: the money that you don't lose rather than the money you make, sometimes. turning from the public markets to the state of retail and the

private markets, that's next, we will talk about that consumer can see how much juice they have for that economy. this is bloomberg. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

sonali: it's time now for the stock of the hour. tjx is higher after boosting profit or cast and a jump in year-over-year comparable sales with home goods division, the increase in customer sales was responsible for the growth and comparable sales. we will discuss this with laura, who has a buy rating on the stock. it's an exciting moment as we get to the end of the earnings season to see how these consumer focused stocks are holding up. were you surprised at all? >> i was surprised it wasn't even better, the stores looked

so good with great brands and values. we think that the consumer is under pressure because of an nation, or the numbers would have been even stronger. sonali: that's fascinating. where are you seeing the most stress among consumers in your universe? >> companies that sell home related items. home depot, lowe's, they had their worst in two years since the january 2010 order. sonali: that's pretty fascinating. if home goods was the bright spot, what's the difference in how the homeowner approaches the retail market? >> much more weakness if price points are $500, $1000. home goods does the cheap and cheerful refresh, doing it as well as they do it, that takes share. p.m. sunak: do they have -- sonali: do they have to have pricing easing? do they have to go cheaper now?

discounts, sales, to bring in the marginal buyer? >> it's debatable, but first of all we've seen the higher tumors doing better and if they can offer sharp values on better brands, it helps them to bolster the share rather than competing for the shirt. sonali: right, the high-end candle. you made the point to me in the commercial break about how we are not done yet, we still have big names ahead, including bj's, in the next day. what do you expect? >> bj's and ross both report tomorrow. bj's is the little sister of costco. the consumer is under pressure. they will do well if they can come flat. bj's, that is. ross, also a customer under pressure with low single-digit comps in what we look for.

9 you -- sonali: you have etsy as a buy, the rest on -- as a cell, the rest on hold. macro, what's the most vulnerable? >> i honestly thought that by now we would have buy ratings on home depot and lowe's. we are looking for the fed to cut rates so that we can find things like whirlpool, mohawk, etc.. we are looking forward to a change in sentiment and i think the fed is going to push that. sonali: we appreciate you so much, laura. before we let you go, he check on the markets trying to hold onto the gains still in the red. the s&p 500 is nearly flat, the gains in the 100 have been wiped out for the day. a flat day makes up for the very interesting couple of hours ahead. two-year yield's, marching higher. we will keep an eye on that for

the week they big fomc meeting in a couple of weeks with a lot that could happen before then. what could happen between now and the valve? nvidia after the close. we will talk about the u.k. election earlier in the hour that was announced. for now, this is bloomberg. ♪ dangerous ladders. gutter muck.

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>> from the world, this is