sonali: "bloomberg markets "bloomberg markets this is -- this is "bloomberg markets," hitting the lows of the session today. the s&p 500 is down 2/10 of 1% on the day. the nasdaq 100 folly merely in synchrony, down 1/10 of 1% on the day. the two-year yield is roughly flat. big jobs day data tomorrow. 10-year yield is below the 430 level, firmly so, down at 428. mid-day movers, lift is

expecting gross bookings to grow 15% at any annual compacted rate. they put out a statement anticipating full-year cash flow conversion of 90% annually between 2025 and 2027. as the magnificent seven continue to outperform, microsoft, nvidia, and apple are now worth more combined than the entire chinese stock market. the nvidia arc it cap blew past $3 trillion this week as they continue to drive the tech sector. the companies are worth more than $9 trillion. to the labor market ahead of a big jobs day, jobless claims last week were rising to a one-month high of 2000 -- 220 9000, higher than anticipated and bolstering the argument that the labor market is cooling. employers announcing more than 63,000 job cuts in may,

increased from april but down from may of 2023. challenger, gray, christmas vice president andy challenger joins me to discuss their latest from work. if you think about the pace of job cuts you are seeing, put them into perspective in terms of where we have been for the last couple of years. andy: 63,000 is not as high as the beating of this year or last year but it is still elevated, higher than the average that we tend to see at this time of year. it's a sign that employers are continuing to conduct layoffs across a broad spectrum of sectors. there are unfortunate signs on the hiring as well. we saw the lowest monthly amounts spent on hiring that we have seen in quite some time. with its elevated, continued elevated pace of layoffs with a cooling hiring number, we are

concerned that the labor market my fee cooling slower than the fed had expected. ed: when you say -- sonali: when you say it is cooling slower and you talk about weakness, where do you think there is still the most slack right now? andy: it's in those lower paid service level jobs, in in person roles that are around entry-level, the hourly sour lorries. -- salaries. that is where companies continue to find a hard time filling those roles. you can talk to companies all the time that say that in my industry i'm still in a labor shortage, while we see a lot of white-collar jobs in technology, finance, high-end business services have really started to cut quickly. some negative signs there. sonali: now when you think about

the jobs being made available, what do you think is most different at this point in time? you were talking about the difference in seasonality here and this is not what you would typically see. where are things really starting to change the narrative? andy: usually get the beginning of the year we see the most hiring, where companies are adding to their payrolls. unfortunately, two years and around now after that major labor shortage that we saw from 21 to 22.5, we started to see things drop, companies laying off at a really elevated level, mostly for cost-cutting reasons. clearly in some ways they are admitting to the fact that they over hired during that time just after covid and they are getting down to the right size for the business environment as they see it going forward.

sonali: what do you think about the wage story and the increases we have seen in wages because of inflation rising? now you are stuck with a workforce that is being paid a lot more but at the same time where parts of the economy are starting to get weaker. what does this mean for how employers are able to keep people on staff, given that they are paying people more in aggregate? andy: it's such a overall part of the inflation picture, that extreme labor shortage faced by the country, where they were raising wages at a rapid pace. that has led to further inflation. you know, that cycled on for a while. as the labor market and the economy slowed down, the worry is that you pop and you run into the opposite vicious cycle. hopefully, we are still moving in a slow enough cooling that it

doesn't happen, but there are some real concerns in the data right now. sonali: what are the concerns? andy: continued elevated levels of layoffs that we are seeing in a broad sector, a broad number of sectors, as well as the low hiring numbers. we saw increases in the numbers of people filing for first-time unemployment. those signals, to us, are saying that a cooling is happening. it stalled out for a little while, we had an up tick at the end of last year in the labor market, but since then it has been on a really consistent decline. the hope is that it just doesn't go too far. sonali: it's interesting, you set a couple of different things. one, the job market not cool as quickly as the fed would like, but you are still seeing troubling data here in terms of the pace of layoffs. how can both be true? andy: i might've misspoke.

i think the fed is hoping that the economy cools slowly to not cause calamity. if it cools too quickly, it could move the country into recession. so, the intended hope of the fed is that through lowering interest rates they can cool the economy at just the right amount to avoid recession and also abate inflation. sonali: what does that mean? does that mean you think that things can really start to hit a cliff at some point here? anything about the data that tells you that we go from something like a softer cooling of the job market to a much more drastic one? andy: just these increased numbers of layoffs. the fact that we have seen for five months in a road this elevated number of layoff numbers coming from companies announcing potential job cuts, or actual job cuts they are going to make, it could lead to the cooling happening more

quickly than everybody hopes. the goal is that this happens smoothly. but there is always the chance that it goes too quickly and that there are some signals of that with the number of layoffs and the low number of hiring announcements we are tracking right now. sonali: andy, thank you for joining us. that's andy challenger with the most recent report on layoffs we've seen across the united states. coming up, robinhood making its first acquisition outside the united states. we discussed that deal in the crypto world, up next. stay with us, this is bloomberg. ♪

sonali: time for the stock of the hour. robinhood is set to purchase stamp, the european crypto exchange. it's their first expansion outside the united states and their latest push to stay in the crypto space. for more on the deal we are joined by paige smith, robinhood reacting well on the news, shares spiking, but elephant in the room, this deal comes one month after they disclosed a wells notice to the sec about crypto. how are they so comfortable despite the concern? paige: thank you for having me and i think that's a good question to be asking right now. i think it's fair to say that crypto activity across the market is under fire. robinhood is not an exception to that. that said, if you look at their

most recent earnings, there crypto revenue is bolstering the earnings quite significantly. so, i think it is certainly a bet for robinhood and outside of their home market of the united states. it sort of a push on that global expansion for the firm. it certainly is a bet on crypto given the elephant in the room. sonali: is it a bet on crypto is much as it is on robinhood? how much have they been able to diversify? paige: robinhood has been branching out into a number of different financial services across the consumer facing spectrum. there are retirement products that are now an option for users. the menlo park taste firm out of california also rolled out a credit card for some of its

users. so it certainly is a push for the firm to branch out and just kind of be a financial services company for all sorts of consumers. at all points in their life as well, right? sonali: you mentioned people going there more for crypto trading. how significant is it this time around for them to be a bigger part of that space? paige: as i mentioned, it was a huge part of their earnings last quarter and they are betting big on it. u.s. regulators have certainly cracked down on crypto. but i believe that there are other markets that are perhaps more friendly, though there have been some recent regulations coming out of the eu related to crypto. it certainly is a bet for the company, but they are doubling down on it and they are not alone. looking at the tech space and other firms, other firms like

block are also betting on crypto. it is certainly something that is not going away. sonali: it's interesting, i understand is the first foray of robinhood into the institutional business and it brings them abroad and in dressed a. do they have significant global presence yet? or does this really add to the fire for them? paige: it certainly adds to the fire and earlier in the spring they launched a trading at in the united kingdom. i think that the eyes are global. they are looking to expand outside the united states in this provides a sort of foothold in the united kingdom in the eu more broadly. excuse me, they already launched in the united kingdom, but a good amount of it has presence in a number of eu countries, like the netherlands.

sonali: it's interesting, this is coming next year pending regulatory approval, with -- as all deals do, but what does this say about what robinhood can become in the next couple of years? paige: these service companies who started in one place and have grabbed their foothold and want to say hey, we need to diversify offerings if we want to stick around, need to get into credit cards or lending in some capacity, need to offer, need to be the best retail brokerage there is around. you know, in the case of robinhood there is a number of different competitors. you have more traditional players, like charles schwab. you have these other at eight retail brokerages. -- app based retail brokerages, targeting younger

consumers that maybe don't, you know, if, if jp morgan is top of mind for our parents, perhaps, maybe robinhood is top of mind for maybe the next younger generation and it is a way for them to grow and mature financially. sonali: thank you so much for keeping an eye on this deal and everything else in this fancy financial technology. coming up, credit squeeze bondholders are suing switzerland over a write down when the bank was sold to ubs. we are going to discuss this with an elite prosecutor next, a lawyer in the suit brought up by 81 bondholders. we will talk all about it. this is bloomberg. ♪

sonali: this is "bloomberg markets," and it is time now for the wall street be. queen emmanuel, the world's largest litigation only law firm has filed a case on behalf of credit squeeze tier one bondholders in the southern district of new york. they allege that the bond values will be reduced to zero as a part of the sale of credit suisse ubs being unlawful. joining me down is dennis, that's the head of the litigation practice. a lot of questions about the

lawsuit. lots of these have been filed in different fashions, but when you decided to file the suit, why did you do so in new york? pleasure to be with you, that's a great question. as you know, at the beginning of deliberation the group of bondholders at my firm represent about 6 billion 81 holders -- at1 holders. the first was brought in switzerland, an obvious choice. but it has always been my client's belief that it would be best to provide a litigation hedge against a home-court advantage that the swiss government is likely to have in their own courts. because the injury that my clients suffered actually happened in new york, the at1 instruments are cleared through dtc in new york and were in the

custody see -- custody of an entity in new york. most of the brokerage accounts were resident in new york, so the end -- injury happened in new york, making new york a logical place to bring the suit. another important distinction between new york and switzerland that we will probably talk about a bit more this morning is that in the united states, as you may know, we have very broad discovery into the facts and circumstances that gave rise to the case. that's not true in switzerland. one of the reasons we brought the case in the united states, particularly in new york, was so that we could take advantage of the discovery process. sonali: there have been a number of cases brought, as you said, and some decided to sue the bank itself, for example, instead of the regulators or the governing bodies around.

how do you decide how? dennis: the ultimate decision to wipe out these at1's was made by the swiss banking regulators, not by switzerland. ubs may have been involved in the conversation, but ultimately it wasn't their decision. in our view, the natural choice for targeting the misconduct that gave rise to the injury was switzerland. sonali: a lot of arguments have been made about this, about what was and wasn't documented at the time and of course at the time it was a significant moment for the swiss banking industry, as well as for these banks, where people seem to believe that there was no other option here. when you think about the course of events that came over such a short amount of time, during the resolution process how do you think through now, in hindsight

what you would be able to get back for all of that. dennis: that's a fantastic question and in fact, the swiss regulators had more options available than one might think, notwithstanding the fact that this was all happening very quickly. first and foremost, there is a tailor-made remedy for banking regulators to deal with a situation like this, which would have been to put credit into what's called revel -- resolution. it was fine following the financial crisis and it would have been in actual choice in this decision for pursuit. not the only choice. pursuing commercial solutions as they were characterized by empowering someone to purchase credit squeeze was another remedy available to them. but the problem is that

switzerland refused to entertain any other potential bidders for the bank and was only willing to consider ubs, we think, to prevent credit suisse from falling into foreign hands. as a consequence, if you run the auction process with only one that are, they can dictate terms and what has happened is we have seen as a consequence is that the 81 holders -- at1 holders, including my clients, pay for it. sonali: we can think so much about what happened at the time, but what does this look like moving forward and reasonably, what do you expect to get back for your clients? dennis: clients of the second question. first, we expect that if switzerland is willing to negotiate settlement with our clients, which is what we would

prefer, we expect a money judgment for the total amount that they are claiming was wiped out at the conclusion. but between now and this, the first thing that will happen is they will have to serve the papers on switzerland. that will take about one month, we think. after that happens, switzerland will have 60 days to move to dismiss the complaint. they could also answer the complaint, but we expect them to move to dismiss and argue that they are entitled to sovereign immunity. we feel quite confident that because switzerland chose not to take the path that would have been natural for a regulator to take, but rather essentially adopt the role of investment bank -- sonali: dennis, we have to leave it there, we are coming up on a heartbreak will be following this lawsuit in the many others

being filed in regard to the at1 bondholders of credit suisse ahead of their purchase from ubs. that does it for "bloomberg markets." we watched markets click to read to the day will keep an ion it into the close. that does it for "bloomberg markets." this is bloomberg. ♪ 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

business, this is "balance of power." live from washington, d.c. joe: indeed, we are live from washington. bloomberg tv and radio. i'm joe mathieu. the future of the capital city is being reimagined. coming up the special conversation with the man in the middle of it, ted leonsis. he joins us on the intersection of business and politics and a look at the reimagining of the american city. charlie? charlie: in the jobs report, the s&p is down 11. the dow, little changed in higher, under .1%. nasdaq lower five point 3%. 10 year 4.28% with a two-year

yielding