bonnie -- vonnie quinn: let's get a quick check on the markets as we had until lunchtime. the s&p 500 has not been completely volatile, but it hasn't been a higher, just a fraction of 1%. nvidia, empowering gains for tech companies and the market overall. the stock is up 8% thanks to nvidia and the halo effect it is having on ships, up half of 1% for the nasdaq as you can see.

softer on yields, reversing that slightly now. as you can see, some strength to the oil trade below $80 per barrel continuing geopolitical tensions and waiting on that opec-plus meeting. on the equity side, as i mentioned, nvidia is powering the market once again today to extend a post-earnings rally for a third consecutive session. on the heels of the elon musk start it has raised $6 billion. i'm watching three point -- report mac moran continuing to successfully navigate challenges facing the industry. today's move comes on the back of an enthusiasm wave for copper after china put in place some measures to boost the housing market and having a wonderful week so far. investors are weighing the feds's higher for longer message, investment rates hover

around 7%, double what they were three years ago. earlier today we learned that home prices rose. increasing seven point 4% from a year earlier. san diego hosting the biggest annual gains followed by new york and cleveland. paulina wrote today about the possible unattainable american dream of affordable homeownership and she joins us now. how dire have things gotten in the past three years? paulina: i think that for a lot of americans, they have seen borrowing costs double, home prices go up to 300 and 43%, sorry, $433,000, unattainable for most americans. there's a lot of hope that interest rates would drop into thousand 24 and now that the fed has changed their tune, the dream of homeownership is unattainable for longer and for some for good. vonnie: we will continue the

discussion and make sure that everyone reads that story. thank you so much. now we have our next guest, are we watching american society become a rental society in real time? >> i don't think so, though it is true that rates have doubled. we have to get some perspective. the post-global financial crisis, where there was little trust in the market, today we have the guardrails in place. people are still borrowing and buying homes. the challenge is one of inventory because we have what is called the lock in effect. sellers don't want to list their homes because they have locked in their rate, creating a gridlock with inventory. there is incredible demand, but we don't have the supply to match it. buying a home remains the american dream and a commitment to economic security. considering all of the

headwinds, the housing market has chugged along really well. it's been more resilient and steady. vonnie: redfin says that 60% of listings last year were affordable. that's a tiny number of listings. when does it begin to leave? paulina: we need -- bess: we need more inventory in the market so that prices can come down with a healthy intersection of supply and demand. we have a lot of demand and not enough supply, creating higher prices, people sitting it out and renting because there is nothing they can afford right now. vonnie: it's likely we won't see bulk inventory until the federal reserve starts to do something. but that first got, how much does it trickle down? bess: i mean, that's the question. there's no indication that the fed is going to cut the fed fund rate in september because the

inflation data points are not positive enough yet. they could even raise them. i don't think it weaken on that. rates have gone down a little bit in the last few weeks. this is a news cycle and we have to live with the 6% to 7%, even 8%. this is where the new mortgage rates are. paulina: what's interesting about this time is that when you look at the national association of realtors measure, the past few years have been one of the most unaffordable housing markets in decades. like you mentioned, it's a combination of borrowing costs, high home values, and inventory that created a perfect storm that put housing out of reach for many people. i think that the price, as home values continue to rise, there are fewer and fewer americans that can break into the market. vonnie: it's also a question of other expenses, right? expenses to do with insurance

and other types of -- expenses took one third of homeowner income last year. how does that improve? bess: that's a real challenge, insurance costs have gone way up. this is what has created a lot of people to sit it out and rent while they wait to see what's going to happen. i would never give up on the american dream of buying a home and i would love to tell -- home. i love to tell the story of a housekeeper we have for many years, lived in trinidad -- from trinidad, bought a house in queens, raised her children there, it has become her nest egg. it remains the american dream. in due time as people put their homes on the market and we build more housing as we know we need to do, we are over 2 million homes in demand right now. i think that that will improve things, but it takes time like anything else. vonnie: we got consumer confidence numbers from the conference board today and it was better than expected.

what data are you looking forward to in terms of where the market is headed? the savings rate? paulina: it's a mix of things. a lot of consumers don't look at the key economic indicators that experts and economists are using. they are looking at how much their grocery bills costs, whether it's from home insurance costs, other maintenance costs they are having to deal with, i think that a lot of consumers are feeling, still feeling a lot of price pain in the housing market. we see housing markets considering to keep inflation persistently high. vonnie: so, the median price tag across the united states is $433,000, but bess, where is demand strong right now? bess: demand is very strong in palm beach.

in connecticut. in various parts of connecticut. supply is low compared to demand. the market has been fluid in new york city. in those places we are seeing good business. vonnie: fantastic discussion, looking forward to it again. coming up, elon musk raises $6 billion in an effort to take on his former allies. 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. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. vonnie: this is "bloomberg markets," openai has created a

new board committee to evaluate the safety and security of the products. $6 million to accelerate the challenge to openai. ed ludlow has all the details. the new committee was necessary for capital markets purposes, i imagine? ed: it's a new committee, somewhat. along with core ceo adam d'angelo. there is the sony executive, nicole seligman. other staff include stamp -- sam altman. one big criticism of this is there are governance concerns around ai where they disbanded the historical safety net of the team that basically looked at safety and this is what was put in its place, but one observes

that it's not usually diverse, either from an agenda standpoint, or it hasn't really differentiated from there being a high concentration of openai executives or existing names charged with that oversight. vonnie: does it give sam altman more leeway if he is on the board with his presumed allies, does this give hit -- give his ambition free reign? ed: the history here is important. if we go back to the brief weekend where he was ousted, one of the points of tension was his desire to drive the commercialization of large language models and generative ai tools. one of the other cofounders sort of hesitant that that was the right thing to do. there was a point of difference on how much should be focused on the safety part of this and how much should be on making money.

this expands oversight in the sense that more people were a part of the discussion but the central tension is still there. those driving forward on the money side of things are those that are charged with ensuring safety and development. vonnie: let's move to elon musk and xai,, what vision for the ai future is he describing that allows the likes of sequoia and andrews and horowitz to pump money into the measure? ed: the expensive kind. developing large language model tools is expensive, so i point you in the direction of nvidia shares trading higher today. one reason is extrapolating from the funding around it. xai will largely use h 100 to train the models. it's interesting, grock is the only public facing integration

of their work. it is trained on data from that social site. clearly, they need money to compete on talent and on compute. what they do with that in terms of a consumer or enterprise facing tool, we don't have a very good sense of. vonnie: for his part, altman said he wanted to build a super intelligence. ed: elon musk is known for his productions and timelines, but often he misses those. he says artificial general intelligence is something he sees happening next year. he has been inconsistent. he signed the infamous letter calling for a pause on ai and was asked on that last week. do you want to be a spectator or participant? he believed that there should be

a pause in the development of ai, but believed that there should be involvement in making the technology rather than sitting on the sidelines. we need to see much more clearly the point of difference that it has relative to openai or the other startups. vonnie: ed ludlow, thank you so much. time for the stock of the hour, t-mobile agreed to spend $4.4 billion to acquire wireless operations and 30% of spectrum from spectrum. this obviously includes declan. what does t-mobile get out of this beyond the obvious more customers, markets and smaller? >> first, thanks for having me. to your question, and it's a good one, the telecom business is a hard business to be in right now. it's a saturated market. virtually everybody has wireless

service. m&a is one of the few places for growth for this industry. otherwise it is just at&t, verizon, going head-to-head for what little of the market is out there to grab. with a specific inroad to the smaller markets, more suburban communities they don't have access to as the well as the stores. you cannot discount these brick and mortar store operations it is getting as a part of the deal . lastly, the spectrum airwaves. t-mobile already enjoys an advantage. it leaves the other players, verizon and at&t, with a rural community market, it builds on the opportunity. vonnie: the part about verizon

that we have all talked about, at&t from time to time, u.s. cellular is not so much. not any huge ad campaigns i know of. who are these customers? >> do not be embarrassed if you have never heard of u.s. cellular before this, the only big three names right now are at&t, verizon, and t-mobile. u.s. cellular is the fourth largest, but does it hold a candle to the big guys? probably not. u.s. cellular is big for its customers and its customer base is large. to your question of how they benefit or lose from this, u.s. cellular is going to -- held a call this morning that they called a big win for customers. not just because they can enjoy improved service from consolidation of the t-mobile network alongside u.s. cellular, but also affordable pricing. they are touting those things as

a clear win for the consumer. vonnie: any regulatory challenges they should be worried about? lynn: good question. these kinds of telecom deals have drawn scrutiny in the past. t-mobile has been a part of those big deals that have drawn some concerns from the ftc before. for sure this is going to have to go through a fairly lengthy regulatory approval process, which is why they are probably not expecting the deal to close until next year. the markets like it. vonnie: investors in both companies, pretty happy about the deal. coming up, showcasing the competitive wage gap in the private credit industry. we have a look. this is bloomberg. ♪

thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

vonnie: this is "bloomberg markets," and it's time for the wall street beat. it is also today's big take. a closer look at the booming private credit market. a fight between bearings and senior defectors is a rude awakening for the market, selling itself on trust, as well as stability. paul cowrote the story and joins

me now. thank you for joining. explain what happened. details are murky about how these left bearings for another shop. paula: so what we knew before in the story was that 22 people did it at the same time on the evening of march 8. now we can tell you a bit more about why they left. what we learned is that all weight men offered the defectors carinthia. opening up a path but it wasn't just about the money. they are upset about how management fees and carry, for sharing profits on what managers get to keep, there were lower bearings. the condition of private credit was about giving support for operational matters and recruitment. they were happy about the revenue sharing going on.

the other issue they had was that it was owned by a u.s. insurance company called massmutual investing in credit funds. the lions share of the initial frustrated defectors, leading them -- leaving them to leave the business. vonnie: is this even legal? paula: bearings has sued carinthia and have called it a previous misuse of confidential information and carinthia has filed a motion to dismiss, to say that it's nonsense and there's no evidence for us having misused any confidential information. this will be in a court case that it's working its way through the courts. it will be up to a judge to decide. vonnie: what about the investors that would have been with bearings and are faced with staying therefore going with the person they might have been

dealing with. how are they reacting? paula: the investors are mad about the entire situation. when they discuss the pension funds and sovereign wealth funds that gave money to bearings, the investors are bearing for having it in the first place. the firm led many people to jump ship, but there were people that love to bearings. these people sometimes had decades long relationships. up until the point that they jump ship, it was a huge shock to investors, how public and messy the whole situation became. vonnie: and the suddenness of it , if anything it may have been illegal to give anyone a heads up on this. it remains to be seen how these 22 perform at carinthia. it could be a big disaster,

could it not? paula: the entire private industry is watching to see what happens. first, can they pull it off? will they have a successful set of loans or returns on the investors and what they end up being? [no audio] vonnie: paula there with our big take and of course, that fantastic private credit story, i would urge everyone to have a read of it on the bloomberg. we just lost paula there at the end. quick check on markets now as we head towards midday. we are four hours into trading. as you can see, the dow jones industrial average is lower by half of 1%. the s&p 500, despite the better consumer confidence data, it was mixed because in their we had neel kashkari floating the idea that the fed hasn't completely

shot down an interest rate increase as the next move. two-year yield's higher on the day after a soft auction and we will continue to monitor the art -- markets throughout the afternoon. ♪ craig here pays too much for verizon wireless. so he sublet half his real estate office...

[ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities.

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

live from washington, d.c. joe: closing arguments are now underway. welcome to the fastest show in politics, as the donald trump criminal trial in new york enters its final phase before the case goes to the jury. i'm joe mathieu in washington, thank you for joining us here. we will have the latest on the trial and what to expect this week in a conversation with a middle law attorney, who is back with us today, as democrats grow more concerned about the democratic -- democrats go come -- more concerned about the biden concerns for reelection. we will lift the veil with analysis from our panel. jeanne please with us, joined by lisa. they've got a lot to talk abou