0 sonali: let's get a check on these markets because we are watching the s&p 500 start the day in the green and now slip into the red. we are near session lows in the s&p 500 is down about 0.3% and the nasdaq 100 is still trying to hold onto gains but essentially flat on the day and ai is waiting on the love and the philadelphia semiconductor index has a strong bid of 0.6% and broad cam dachshund broadcom is out with its forecast and driving that index higher. you have other parts of the market that are pulling on it and crude oil is taking a breather after russia agreed to dial back output and inflation data led the way when it came to the story in terms of what is possible for the engine of this economy. let's look at the 10 year over

five days. there was inflation data yesterday but producer dated today as well as jobless claims show the bond market cooling and we are back where we started about five days ago, you are seeing a stunning move over that five days with the 10 year yield hitting almost 450 once again. it's back down to about 4.24. you're looking another four bases move today after the producer price index data but the jump you saw earlier had a lot to do with the jobs data you saw late last week. it was reversing after you saw signs of inflation cooling. murmurs that the fed's dot plot is becoming more and more obsolete were justified this morning with the ppi data coming in substantially lower than expected on both the headline and jobless claims were unexpectedly rising more than expected.

this is what we heard this morning. >> when you tend to see a deterioration in the employment picture, you tend to see that led by initial jobless claims. it's a leading indicator but one data point does not make a trend and we will look to see what happens. what was interesting and yesterday's economic projections is the fact that [no audio] the fed cap core pc at 2.8% for this year. and that context where inflation is still relatively sticky in the job market is quite strong and growth is at two point 5%, i don't see any need for the fed to rushing into cut rates. sonali: the de novo rochester business school joins us now to discuss the economic and federal reserve picture in light of the data we are getting. we were talking about the round

robin in the 10 year yields we are seeing on the back of the data last week and then this week. how do you feel about the progress being made on inflation today? >> the news that we received today in the cpi index in may is certainly in the right direction. i think the fed will be patient as far as cutting interest rates. [no audio] they will probably be more patient than the rest of us and the economy. sonali: do you think this makes sense given what we are seeing in the data? >> absolutely, as the news about both the economy and the price indices come in, we are seeing a picture where the markets would really like the fed to start

cutting the interest rates. there isn't that much pressure either from the labor market or from economic growth for the fed to do so. it has a little bit of room to wait for the inflation to stabilize. that fluctuation is a little bit of not conflicting but different data points coming through the economy and giving a little bit of a mixed and complicated picture. sonali: it certainly is complicated and you think about just how whipsawed bond investors have been over the last couple of months. a lot of people have piled into that duration trade just to be burned. how do you think the current data creates complications for the future here? i just want to acknowledge that so many investors have a different basis for why they think interest rate cuts might come. >> maybe a couple of months ago, we were thinking about seeing interest rates toward the end of the summer or the fall and now

that might be extended into the new year. we are going to continue to observe the labor market despite the jobless claims increase we received continues to be historically very strong. are we seeing a little bit of a softening from a year ago or six or eight months ago? yes but it's mild and one data point does not make a trend. we need to wait to see exactly what kind of information we are getting from the labor market and growth. the u.s. economy has been growing at a steady clip outpacing a lot of the industrialized countries across the world. that really does leave more room for the fed and i think that means the bond investors will have to be more patient. sonali: you think about how volatile this year could be for circumstances that have nothing to do with the fed's control like the u.s. election moving forward. the picture for next year for

those betting on longer-term bonds right now, the fiscal picture has still been quite dire in many ways because they were concerns about the u.s. debt load and it's made art for people to made that truck -- to make that trade into the longer end of the curve. will there be more confidence or uncertainty ahead? >> elections are always times of uncertainty. this is not just in the united states but across the globe. there will be more fluctuations around november election time and depending what the outcome of the election is about impending policies and policy changes. once the inauguration hits, we will see more uncertainty. that might factor into the calculus that the fed will intoe calculus that the fed will do although they try not to manage that. on the fiscal side, i 10 to be

hearing about the u.s. that's unsustainable and it's reached over 100% of gdp. those rules of thumb don't have much bases in theory. the u.s. economy is growing at a steady clip and both the household and the firm indebtedness is at a low level. the amount of money the u.s. government is spending in servicing that debt especially in real terms once we take the inflationary piece out is not that high. it's on the historically low rates. i tend to be more sanguine about that but it doesn't mean we should go on a spending spree and push fiscal prudence to the side but it's not the thing that's keeping me up at night and i hope that's comforting words for the bond investors as well. sonali: she is the dean of university of rochester simon business school, thank you so much for joining us today. switching over to global

politics, former president donald trump is pitching executives this morning at a business roundtable event in washington at that same time, president biden is at the g7 summit in italy with news around ukraine funding. we will bring in annmarie hordern in italy and kailey leinz in d.c. we know the roundtable had begun and we have a lot of folks, high-level executives sitting in on that roundtable. what is the message from former president trump to them? kailey: the roundtable has ended and donald trump motorcade has left in washington, d.c. and moved on to the senate building in which he will be meeting with senate leaders and other republican members of the senate after meeting with house republicans this morning. two of the ceos in this room like jamie dimon and citibank and others including tim cook of

apple were expected to be here it was likely to be a pro-business message. donald trump got to deliver that in person unlike joe biden who's at the g7 in italy so his chief of staff had to plead the embedment to case earlier. donald trump is been talk about a pro-business, lower texas kind of effort he would like to see done if he wins another term in the oval office. a number of lawmakers in the house i spoke with coming out of their meeting with trump outlined ideas he was floating including raising tariffs on adversaries and using potentially some of those offsets the lower income taxes on americans. marjorie taylor greene told me that trump suggested perhaps no income tax although others suggested she didn't think that was necessarily a serious outline of policy. the general theme seems to be lower taxes and try to boost the economy and perhaps less regulation. sonali: thank you so much.

in italy, president biden is speaking to a very different audience. what can we expect from the rest of the day as he addresses the matter of ukraine? annmarie: he will be standing alongside volodymyr zelenskyy and there are to standout themes happening at this g7. in a big win for the united states that's in pressuring the you -- the european union and other allies to get on the desk on board this idea of tapping into future value, the accrued interest payments of these securities that are frozen, the immobilized frozen assets, $280 billion that basically live within the european union. united states was able to get a plan in place. before the end of the year is up, $50 billion will be given to ukraine. this was a big win for the biden administration and they used a lot of political capital to get it done. the other big thing of course is

the fact that you have the g7 leaders and the president of the united states talking that they are the most unified in modern times that we've seen, many of these leaders barring giorgia meloni, the italian prime minister are struggling for their political survival at home. there is a u.s. election it's basically a coin toss in november and emmanuel macron had to give a speech this week to quell these questions about whether he would resign after the snap elections he called. prime minister richey sunak shows up in southern italy potentially out of a job in three weeks on the list goes on. while they are trying to show this united front around the g7 leaders table, clearly they are dealing with a lot of mounting troubles domestically at home. sonali: thank you for addressing what's going on across the pond. what is joe biden's message to global leaders at this point in time? you address the u.s. election

and there's been a lot of noise in the u.s. as well as the g7 is going on. annmarie: this is president biden's fourth g7 and went -- and when he went to his first one, his message was america's back. this g7 potentially could be his last. is the final g7 before the november election. president biden still trying to say that regardless of whether or not wear u.s. policy goes in the future, the united states stands for supporting ukraine. that is why they wanted to get this deal done on tapping russian assets done before the u.s. election. that's what many allies of the united states also wanted to see happen. regardless of who comes into the white house next year, ukraine would have access to that $50 billion. the second thing is we will see the president signing a bilateral security agreement with ukraine. this is with deeper cooperation

between the united states and ukraine. it's not a treaty and doesn't have to go through congress to a future u.s. president can pull the u.s. out of it but it is a sign that the united states for the future will be standing and supporting ukraine. sonali: both of you, thank you so much for your work out in the field. campaign season is starting to heat up. coming up, we'll talk about tesla jumping as shareholders may approve a $56 billion payback for elon musk. that's up next, this is bloomberg. ♪

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shareholders are preparing to finish voting on a $56 billion pay package for ceo elon musk. he posted onx saying shareholders voted in favor of two resolutions and his compensation package and moving tesla's headquarters to texas. max chalkin joins us now. if you think about this vote, why does it matter? there were massive investors that voted against it and he got a lot of support as well. >> the backdrop here is the court decision in delaware that essentially invalidated this enormous pay package, 56 ilion dollars and a delaware judge said this was the board controlled by elon musk and it was too much money. the vote is part of tesla's effort to essentially appeal that ruling. if they win as we expect them to do based on belong musk's tweets, it looks like they are cruising to victory, based on

the statement from tesla now, if he wins, doesn't mean anything in the short term. it means that tesla will have additional ammunition going into this appeal. this is a novel legal strategy but i'm not clear it will work. were talking about probably a lengthy dispute in court and probably more than one court especially with the potential move to texas that will be needed to resolve this. this will be going on for a long time. sonali: what did it take to get elon musk to bring investors beyond the finish line? >> as people know, elon musk is very popular and tesla for a big companies owned by a lot of retail shareholders. it has a meme stock vibe. traditionally, the institutional shareholders play a huge role in this. here you have retail shareholders playing a bigger role than normal and what we saw is a campaign, very aggressive marketing campaign i elon musk in some elon musk allies to

essentially get out the vote and get as many retail shareholders as possible devote. there was also a behind-the-scenes campaign to talk to institutional shareholders and bring them around. we've seen hints of where they fell. retail shareholders by and large were for this because they love elon musk. institutional shareholders had more disagreement. calpers, the norway sovereign wealth fund said they would vote against, baillie gifford, cathie wood, t. rowe price and other shareholders voted for so there was a divide. sonali: it's fun when you see a vote against a pay package for still being invested >> in the stock. >>many people are critical of this package because it seems crazy. he's getting paid $56 billion after year where he's mired in scandals and is other companies. there are reasons to argue against this. if you are tesla investor especially of this valuation which is very high relative to other car companies, you have

already said i believe in elon musk. that's one of the reasons why we are all expecting this to pass. sonali: what about the rest of the elon musk world? this is happening against a backdrop in which he's facing multiple lawsuits. >> many lawsuits across many different companies. the latest is the sexual harassment lawsuit brought by spacex employees. you also havoc class-action lawsuits and lawsuits involving severance to farmers employees of x this is. who elon musk delights to take reap -- legal risk and when challenged, he fights. he's always been involved in these scandals but what's different right now is you have this new political mix. elon musk is getting closer to president trump as we and others have reported and becoming essentially a more polarizing figure than he was in the past.

long-run, that could present some real challenges for tesla which depends on marketing to consumers. sonali: power with more dollars in the bank. thank you so much for breaking it down for us. be sure to catch the podcast of musk inc. which max hosts. coming up, the private credit world joining the bond issuance rush. more on this story in today's wall street beat. this is bloomberg. ♪ [introspective music] recipes. recipes that are more than their ingredients. ♪ [smoke alarm] recipes written by hand and lost to time... can now be analyzed and restored

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sonali: this is bloomberg markets. it's time now for my favorite beat, the wall street beat. we are looking at how a group of private credit funds have found a cheap place to raise money and that is in more public bond markets. we will be joined by bloomberg's john sage who is close to this market, business development

companies. why are they tapping unsecured bond markets to raise cash when they have a half a trillion in dry powder sitting around? >> it is kind of about where everybody is going back into may be fears competitiveness where they are doing this to cut the cost of capital for their liabilities because they are getting so much pressure from this market where you're seeing the spreads they are issuing their dead start to come down and they are getting a ton of pressure from their private equity partners saying if you don't bring down the cost of our loans, we will go to the broadly syndicated market and take you out. they said we need to find cheaper liabilities and that's what they been doing for the past year or so. sonali: you are seeing private credit diversify in a lot of ways. there's a story about areas looking at a real estate company and we saw a out do something similar. >> areas is listening to what blackstone was saying about the

real estate market is bottoming. they must've clearly heard that and they are making a big jump or potential big jump into the space by looking at areas that may be bottoming but also still have some resilience. infrastructure is a great example of that. sonali: we have seen a lot of apollo going to the insurance world and where there is a security benefit owned by eldridge industries, he starting a new firm. why is this a big deal in the turner credit? >> you can see him following what almost every private credit player has been doing which is taking insurance which is stable capital and supercharging it into an investment vehicle where gives him so much money to play with. he now potentially could have billions to go and play with. sonali: we reported the asset managers starting with 65

billion dollars in funds under management but of course it could be much more. thank you so much for your time. this is a very active private credit market. i want to show you where stocks are headed. we have had green on the screen before but now we are still in the red. the nasdaq 100 is firmly in the green. the 10 year is comfortably standing at 4.25 after the ppi jobless claim this morning. a busy day in the markets and that does it for bloomberg markets today. stick with us through balance of power in the closed. it's been a choppy day of trading. this is bloomberg. ♪

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>> from the world of politics to the world of business, this is balance of power. ♪ >> live from washington, d.c. joe: the split screen is in effect, welcome to the fastest show in politics as president biden and donald trump schedule

competing news conferences for this hour. we will have a live update coming from kailey leinz was following donald trump today in washington and from annmarie hordern who is traveling with the president in italy. all this on the day the supreme court ruled to uphold access to the abortion pill. we will have more on that with our political panel after a look at wall street. let's start on the markets with charlie pellett. charlie: lots of moving parts in washington and in u.s. markets today. we're looking at a down day for the most part on the stock market. the lone bright spot is the nasdaq 100, up 0.3% and u.s. stocks for the most part are lower across the board with the nasdaq unchanged on the day. the s&p is down seven and the dow tumbling zero point 5%. the s&p 500 retreating from