>> this is "bloomberg markets." let's get a check on the markets because we had the s&p hitting a record today after a record this week. he of the s&p 500 near session lows but still hanging on or trying to hang on. slowly slipping into red for a while. after hitting 5500 earlier in the day. nasdaq 100, even lower. you are seeing the losses accelerate in the tech heavy index. had we held on, it would've been the longest streak since november. now you're saying it lower on

the index. the bond market losing steam as well. 470 on the two-year come about one or two basis points higher on the day. the tenure also at four point 26, about five basis points higher on the day. you bond investors oh so close to erasing their losses for the year. had we held on, we would have flipped into the green but we are looking at a down day. let's get into the details of the equity market with abigail doolittle. >> i think everybody really has their eyes on this epic rally we have had. out of the pandemic lows over the last five years you have the major indexes in a massive way. triple digits for the chip index, up about 300%. over the last year, the s&p 500, nasdaq, all up about 25% or more. there is an interesting divergence.

you have a lot of people wondering if things have gone too far, too fast given the fact we still don't know some sort of a recession is ahead. it seems as if everyone has taken into account the idea a soft landing is in fact. commodities people might have a different story. commodity index last year down. up slightly this year. many folks saying that is a demand issue and it could portend some sort of a recession. all sorts of mixed economic data. the biggest point would be around the liquidity, the fed balance sheet has ballooned in a big way. if we were to track that balance sheet or track money supplied to the s&p 500, lock in step up. i think there's a lot of fear maybe too much money in the system. sonali: thank you for your time. we are watching parts of the industry, energy, artificial intelligence. with that capital flowing into

one sector, investors are trying -- turning their focus to what fuels that sector. at the end of the day, that is energy. the cost of energy report from the low end price range for renewable sources increased for the first time while overall ranges have tightened. it showed renewable cost getting more expensive with fossil fuel prices and discusses the future of power, gas, everything the people are watching in this economy. bilicic -- george bilicic joins us now. when you look at this study, everything you're looking at across every form of energy really out there. what are investors must focused on in terms of places that could see more volatility ahead? >> the investor base is looking at the cost profile of generation as an overarching matter because the country needs a ton of new power because of

the artificial intelligence dynamic and because of on shoring of manufacturing because of economic growth and electrification. folks are trying to understand whether this is an all of the above scenario or there will be a particularw inner across generation types. sonali: i think eyes are just starting to turn to this part of the story. if ai needs capital, every thing that fuels ai also needs capital. how big is the need? >> it -- one of the big debates is how big is the need. it is quite large. even if you cut the demand in have, we will need a lot of capital running into the utility system, into renewables. there is tremendous opportunity in the public and private markets to deploy capital and generate really good returns. sonali: how do you think about the power versus gas dynamic these days? what are becoming more attractive for investors to think about putting new money, new investment, m&a is a think

about the next 12 months? >> our view, and supported by the study we put out every year, all types of generation makes sense. we need everything. renewables will get deployed. will continue to get deployed. we will need more natural gas. we need natural gas infrastructure. at some point we will have new nuclear. i think all of these areas are very good areas. it is one of the positive things we come across in our business, the opportunities to invest in the power and energy industry. sonali: on one hand i see what you're saying about the need of a renewable. how do you address the criticisms? >> on renewables, it is crystal clear to us. they are cost-attractive. they have been deployed widely. they have helped with customer cost 24 by seven renewables, we need other generational types. it is not a one versus the other

thing. it is something where all generation types and fuel types will continue to be deployed. sonali: you're talking about all fuel types. something that is been happening under the surface, traditional energy looking more into the power space. what is happening? >> it is a great question. a lot of the large oil and gas companies had spent time looking at renewables in the power industry, and some have invested in the industry. a lot of those same companies have big trading businesses. we don't think they differentiate between the power commodity and the gas commodity. for power, one of the big cost inputs is gas because it fuels the power plants. it is not surprising sing this convergence. we have seen some people invest in physical assets. we think some of the large companies will synthetically own power assets and probably deploy capital into ownership. sonali: how much of this is

playing offense? if you think about it, there's a big push into doing more offshore, not just oil and gas but when it comes to power, utilities, and when it comes to anything that deals with national security. it is very complicated world out there. how much is the geopolitical situation forcing issue on shore? >> it relates to security for us, which is security of supply for all different types of energy. the things we need to produce the energy, that is the geopolitical dynamic. in this world that is so bifurcated between red and blue, it is an opportunity for people to work across the aisle in our judgment and really do something good for the country. we are particularly focused on permitting reform and the need for that in the u.s. because it is so darn hard to build things here. that should not be a red and blue issue. he should just be an issue for the country. sonali: how much is it looking

more control over the grid from a business perspective? >> on the grid, there's a lot of discussion about the grid and you hear people talk about the fragility of the grid. there is need for investment. if you are investing in transmission assets, that is like investing in new power assets because it increases the efficiency of the grid. the grid will need investment to deal with the additional load and things of that nature. the grid is regulated by federal regulators and state regulators depending on the jurisdiction. sonali: when you look at the study, you go piece by piece and give ranges in terms of outcomes on how different types of assets would be affected. where is there the most volatility? >> the range for new goals -- renewables has grown. the costs are pretty stable. i was say the areas or there is most volatility and uncertainty is as we try to cost out what new nuclear is going to cost for

the relevant utility or marketplace. and then some of the emerging technologies as they scale, where is the ultimate cost settlement point. for example, hydrogen. if the green hydrogen markets develop, which we think they will, what does that say about the cost of hydrogen? we would expect a lot of volatility in that regard. sonali: george, thank you for keeping an eye on the future of energy. george bilicic. coming up, we will dive into micro investing and find out how and americans are using it to save for the future. our guest is acorn ceo noah kerner. this is "bloomberg." ♪

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sonali: this is "bloomberg markets." time for the stock of the hour. nvidia continues to lead its fellow tech firms microsoft and apple, gaining as much as $100 billion in market value at the open before turning red later in the day. the boost came after an announcement dell is building ai factory with nvidia the power rock supercomputer. we're watching shares of honeywell because they will buy evans aerospace and defense company ces for $1.9 billion. it develops electronic systems for aerospace and military use. finally, microstrategy brought approximately $786 million in bitcoin with the proceeds raised from the sale of convertible notes. the purchase raised his overall

holdings to over 226,000 bitcoin, which are valued at about $14.9 billion and about 1% of all bitcoin in circulation. a recent study finds more than 25% of all americans have never had an emergency fund. acorn is trying to address that gap using the concept of micro investing post of joining us now is the company's ceo noah kerner . we are still looking at higher for longer interest rates and looking at a market that hit a new all-time high just earlier today, wavering though at the edges. you also on top of that have a meme stock resurgence in some fashion. when he think about your clients, how do you think about the way they're really trying to put money to work out of those three options? >> our customers are saving and investing for the long-term term, so very small amounts of money.

it is every day families during five dollars a day, $25 a week kind of thing and we are helping them focus on the future and compounding of the long-term so they can see the benefits over time for themselves and their family. sonali: just a meme stock thing where you at all given that may be part of this is coming from this worry that you can't say for the future, this get-rich-quick kind of feeling? >> it totally does. the way we have approached it, we have this program called bits of bitcoin that you can add tiny bits your already diversified portfolio and we think that helps people manage their money intelligently and cast away this noise in the market about trading in crypto and these kinds of get-rich-quick schemes. sonali: what is that about at the end of the day? does it acknowledge there is another generation that does believe in crypto as the future? >> certainly. we have to educate them about how to think about that and diversified constructs. our portfolios are automatically diversified a you can do 1% to

5% of bitcoin but not more. that is important for people if they're going to save long-term and not focus on these quick ways to get rich, which are not obviously fundament a ways to get rich. sonali: if you take a big step back, how big has acorn gotten? who are your clients these days for the most part? >> everyday consumers. middle class. 6 million subscribers around the world but primarily focused the u.s. markets. those customers who have not really saved and invested before and are getting into it and it is exciting to see them contributing regularly and building their portfolio with a long-term so they can change their future and the way their family has existed, unlike prior generations and their family. sonali: when you have a marginal dollar to store away, what is the option here? is it putting back into the stock market or is it putting it back into cash, bonds come into places where there is a field? >> the way acorn started was with spare change. that is the way our customers

get going. we encourage people to do tiny amounts of money even when they feel like they can't. the way spare change works, a link a debit card, credit card and we automatically round of despair charge and it is $30 a month you're not feeling in the background of life. that is a powerful way to invest small amount of money even if you have debt to pay down. sonali: what are people using that money for? are they using it to mostly stay invested in the market come up with those gains from nvidia and large-cap tech stocks or are they just saving to buy a plane ticket at the end of the year? >> a lot of our customers are saving for retirement. then our customers are saving for all kinds of future needs. it could be a short-term trip. most of the time, it is longer-term. our product encourages people to stick with it for the long term. we have the potential screen that shows how your money compounds automatically over 40 years and it is a powerful way to keep people engaged. sonali: how do you differ from

platforms out there? for example, robinhood, where there has been a lot more trading, they do show their trading volumes on a regular basis, they have gotten into other forms of training, for example? why is it you have chosen a different model here? >> we don't offer trading. it is about long-term saving and investing. that is the fundamental difference. you can add different asset classes into the portfolio, but it is not trading. sonali: there's a lot of talk about when acorn will consider going public. is this something on your radar? >> yeah, figuring out how to have a liquidity event is always on my radar. we don't have a date yet but it would be very exciting opportunity for the whole team and our shareholders to take the company public. that is something we will likely do in the future. sonali: how long will it take you to get there? do you think it will be in the next year or so? >> i think it is conceivable in the next couple of years.

it is an exciting opportunity for a whole team. sonali: as you try to march toward that moment, what do you want to be? what has acorn's become? >> we want to be the place for everyday consumers to save and invest for the long term. that is what everything comes back to whether it is for your kids or yourself, the near-term or midterm or long-term for retirement. that is what we will focus on maximizing. for people in the products come back to driving that outcome for our customers. sonali: you mentioned kids, whether you are an adult or child and you have been investing in younger people, parents and their children into investing in the future. how much traction are you getting? >> a lot. we have a product that makes it easy for parents to save and invest for the kids starting at birth. i love the statistics if you start saving five dollars a day by retirement they will have $4 million. we just acquired something that is a kids product that kids can start getting involved as six years old learning about money,

getting reward from their parents, getting paid for chores with an allowance card. we are focused on the kids market and the acorns family express will be something to prioritize forever, actually. sonali: how global can you get? you mentioned the u.k. expansion. how large do you think you can get? >> saving and investing for everyday people is a global need so we're going to focus on bringing this everywhere. sonali: you are mentioning ipo. what does it take to get there? have you met profitability or do you think you will be by the time you go public? >> we are at breakeven. we have a lot of cash in the bank, we are in a good place. next year will be a profitable year. sonali: jeff any reasons to raise money before that? >> no. sonali: looking forward to see where this company goes next. noah kerner ceo of acorns. as the company expands, looks toward public markets in the future, and is more people look for the possibility of investing.

coming up next, we go from main street to wall street. hedge funds are creating in-house programs to groom traders as the telework heats up. we are talking about it in bloomberg's big take. this is "bloomberg." ♪

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and star traders. it is a problem of demand and supply. hedge funds have grown so they have plenty of money but not enough people to manage that. at the same time, if you look at where all of these hedge funds got their people previously, they used to be the prop trading desks at major desks. obviously, after the 2008 crisis and regulations, that ecosystem has been decimated. so there is no new supply of talent coming from. they have hired everyone they could. so the only way they could add more people is obviously by paying even higher amounts of money to these start traders or find a way to train some of the junior people and tweak them for their needs to fill the gap. together, these two approaches

could work really well for multi-strategy hedge funds. they really have not enough people to manage the billions and billions of dollars. sonali: you had very fascinating moment in this story, a rare interview with the co-cio of citadel who says one of the most significant binding constraints and industry is the availability of talent. is that the only problem here? the cost of talent alone with pass-through fees, is that also coming under pressure? >> not really because if you look at the performance of some of these hedge funds, they are doing really well. even this year, the returns for the top multi-strategy fund rains from 5% to 10% or 9%, which is pretty good. it is well above the risk. investors are satisfied with that kind of return. so much so, all of these hedge funds have no capacity left to

take in more money. clearly, demand for the products is not an issue. it is for only the problem if you want to grow more, add more to their assets. there's no other way unless they add more people, they go to newer markets, they add different asset classes or strategies to the mix. sonali: we have to leave it there. thank you so much for joining us from london. don't miss his story "the big take of the day," one of the hottest stories of the day right now because it tells you where people are going next. i want to take a check on the markets. what started as a green day in the markets has suddenly turned a little south. the s&p 500 down about two tens of 1% and the nasdaq 100 down. you have the s&p flying above 5500 earlier in the day, hitting a landmark. the two year yield still about

two basis points higher. that does it for "bloomberg markets." stick with us through the close. that bid in the market waning. this is "bloomberg." ♪ her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> this is balance of power. live from washington dc. >> one week. i am kailey leinz. president biden is said to had take cap david. he is leading donald trump by two points nationally. we will have more with nanticoke and our political panel. plus, we have our eye on politics both israel and russia. first, as always, let's begin with a check of the markets. charlie: we are looking at a down day for the s&p 500 index.