>> welcome to bloomberg markets. i'm sonali basak. investors on a wild ride this week seeing cracks in the tech heavy rally that has driven stocks from a record high. the s&p 500 had been fluctuating through the day. you are watching it seep into the green. it is about .5% higher. the nasdaq 100 also in the green friendly by .2%. the philadelphia semiconductor index about .2% lower. to your yields now down another

two basis points are strong gdp data and a day ahead of pc data, the fed's preferred gauge of inflation. we will get a further look at the market with abigail doolittle. abigail: the nasdaq 100 down 1.7 percent after yesterday having its worst day since 2022. the big movement from a micro level. nvidia. arond the time of the up and down slightly. at session was down almost 7%. we are seeing a rebound out .5%. what makes this interesting is the stock is well below a key support level of 118. so long as it stays below when 18 it suggests investors are awaiting the quarterly report. but at the end of august. thre's quite a bit of waiting to see whether or not they can beat and boost any -- in a big way if that ai story is there. there is a little bit of a bull bear battle beneath the surface.

tesla up 3%. after following -- fallen yesterday on a somewhat mixed quarter, probably ok for the quarter about a about 3%. surface now up 14%, strong quarter, good outlook. green shoots for genai. microsoft to the downside. one reason stocks are flying higher. still a bit of a drag. broadcom encouragingly joining nvidia trading to the upside. from a macro level, something interesting all week is as we have had lots of volatility the yen has rallied. the haven yen has rallied. the four day chart. the dollar-yen down 2.2%. that tells you the haven yen, there is a flight to safety. in the carry trade, the chief yen is no longer able to use as a carry trade. it can be a big reason. especially today's action as to what nvidia dipped down whether it was less cheap money available. now that the yen is coming off

of its highs in the dollar-yen is coming off of its slows it creates an opportunity for investors to have a little more liquidity. i think one reason we are having this flight to safety, of course, too far too fast for big tech. alexion 2024, so many headlines. look at the vix. the vix relative to election 2024 has been a big tell all along this year. the curve october, november in next year elevated towards an 18 handle for much of this year including out of the assassination attempt of downtown, standout. then, around headlines on president biden and kamala harris, the vp, stepping in. lots of volatility. some of it is uncertainty around who will be in the white house next year. who will win in november? keep and i on the vix. great tell on election volatility. sonali: on the economic front u.s. gdp growth accelerated by

more than forecast second quarter. moderating still from last year. it a positive sign for the fed and the kamala harris campaign ahead of the november election. we will discuss it all with guggenheim securities co. chairman jim milstein. jim, you are very steeped in the markets of restructuring as well even with the gdp numbers you have to wonder what the pain looks like on under -- looks like under the surface. where are you seeing the economy weakening? jim: the economy for me by these numbers is very strong. growth is continuing to take a long, as it's unemployment. the fed's interest-rate policy is definitely having an impact in the corporate sector. think about corporate borrowing. usually done on a 5-7 year basis. you borrow for a 5-7 year term. you had very low interest rates ahead of the pandemic entering -- and during the year of the pandemic and cents the fed began

fighting inflation with higher interest rates the entire refinancing market for the corporate sector has changed. you had a 20% of the s&p 500 today cannot cover its vix charges. its cash flows are less than its debt service. as those corporations now seek to refinance their debts in a much higher interest rate environment we are seeing an uptick in restructuring activity. sonali: people talk about this a lot when it comes to small and midsized firms. this is true also for the s&p 500. do you think investors are ignoring the risk especially when you see a much money is floating into risky bonds? jim: i don't think investors are ignoring the risks. some investors are saddled with the risk and dealing with it. obviously, what is it? the magnificent seven represent 25% of the total market capitalization of the publicly

traded securities. i mean, it is a tale of two cities, right? you have a very robust technology sector. but, underneath that, in industrials and business services, you know, the broader economy, there is an impact of interest-rate policy that is real. sonali: let's switch gears. very quickly, the conversation will turn even more strongly to that november election. what is harris economics? what is the difference between kamala harris and joe biden and help it feed -- how it feeds into policy in the market? jim: the campaign is only a couple days old so we don't know what new initiatives the vice president may propose. but you have to assume it will be a continuation of the historic programs president biden achieved, you know, on infrastructure, on climate change. i mean, he says this and i think

it is fair. it has been one of the most remarkable presidencies in terms of shifting the direction\ of the economy in my lifetime. sonali: how much do you think that the steepener of the yield curve is a trump trade? jim: i don't know. obviously, the balls continue to show a slight lead for -- the polls continue to show a slight lead for former president trump over our democratic new candidates. but it's 100 days until the election. that's a lifetime in politics. i don't know if it is a trump trade or if it reflects a greater concern with the federal budget and federal debt. interest expense is now the second largest category of spending forj the federal government after social security. look federal budget. -- when you look at the

federal budget the things congress argue over, the discretionary part of the budget is a relatively small number. we spent a $6 trillion per year. interest, medicare, medicaid, and social security are the so-called mandatory programs. it is what is driving our deficits. there is no apparent appetite on either side of the aisle to deal with the mandatory part of the budget. the steepener may reflect the fact there is no appetite to deal with a federal budget that is really out of balance. sonali: investors believe that both under a democratic or republican administration you still have the debt problem. you don't have any reigning in of spending. what would be different under a future president trump if you were to win in november? jim: raining in spending. as a result of the pandemic in

2020, the congress of the united states, in their infinite wisdom, under former president trump in his last year of office basically created for trillion dollars of new spending to deal with a real health care crisis in the u.s.. that spending -- those programs had 2-3 year terms. now that is winding down. we were spending $7.4 trillion in 2020 and now the federal government spending about 6.2 trillion dollars. the pandemic spending has come off and now we are dealing with the structural deficit where we are collecting $4 trillion in revenue mostly through individuals, through income taxes and medicare and social security taxes constituting 85% of revenue. we collect about $4 trillion and spend $6 trillion with the pandemic spending now abating.

that is a structural deficit of $2 trillion. i think that is what is behind the steepening of the curve. sonali: what is fascinating too is even if you had president trump or former president trump win office again, what he be able to really extend the tax cuts once they expire? there is a lot of skepticism if that to happen. jim: the federal government needs revenue. you have read a number of republicans now say that revenue has to be on the table. unless you really want to take a hatchet to medicare and social security, you --. there is not a lot left in the discretionary budget to play with. your, you can eliminate the department of education, as you hear republican say from time to time. it is a drop in the bucket. it won't make a big difference. it may have political currency. but, in terms of changing the trajectory of the federal government deficit it is not a big item. sonali: a steeper yield curve

might look pretty but has dire implications. guggenheim securities jim milstein is sticking around. we will talk about jim's pitch for a federal government to finance construction. the mortgage market is a big topic of discussion, especially today. stick with us. this is bloomberg. this is bloomberg. (♪♪) (♪♪) (♪♪) (♪♪)

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sonali: welcome back to bloomberg markets. i want to take a quick check of two stocks today. mr. cooper is buying the flagship mortgage operations here of the new york community bank. mr. cooper shares no more than 9%. new york community bank still plunging more than 6%, houma 7% on the date. of course, worries about credit

quality at the firm. at the same time, selling off a subsidiary dealing with residential mortgage servicing. now, it all ties into our next discussion going back to the guggenheim securities co. jim milstein. he pitched a new federal program to provide mezzanine financing for new construction of homes. you laid out the plan to our colleagues in a podcast with joe weisenthal saying it was probably one of the most fascinating episodes ever. how do you plan to restart this housing economy at a time when many people believe we are in a pretty serious affordability crisis? jim: we are in a serious affordability crisis. depending upon which economist you talk to we have between a 3 million and 5 million shortfall of supply of housing units against the demands there. when these markets are out of balance, when any market is out of balance between supply and demand you get price appreciation.

since the pandemic we have seen house prices of 20%. typically, over the long-term, over the last 200 years of american history, house prices have appreciated on average 2% per annum. in the last three years we have seen house price appreciation of 20% and rent appreciation as well because there is such an imbalance between supply and demand. yes. it depends on markets. often because of the move -- austin, because of the move to various people to austin during the pandemic austin had a surge of multifamily housing office development and now rents are softening because markets are coming into better violence. that's not true in many parts of the country, in both rural and urban markets because of an enormous shortfall in housing availability. sonali: you are pitching a short of capital to stream, a public-private partnership of sorts. how do you encourage voters to get to the places that matter? we had an amazing story on the

bloomberg terminal yesterday about how to real estate market is broken for everybody except the ultrarich. affordable housing, houses for everybody who lives outside of a city in particular, how do you encourage people to build in those areas? jim: you have to break the imbalance between supply and demand. if you have excess supply, the fact housing costs in all segments, both affordable, middle, and high end, as a middle income people move into higher income houses, as their income increases it creates availability. it creates availability. my idea, and i am not unique in this, because a number of people think it is a needed federal program. it is a to provide concessionary mezzanine financing. typically construction is done 60% senior debt 40% equity. the idea is to have the

government step in and provide a mezzanine they are of 20% allowing equity to be sonali: slightly more levered. through fannie freddie? jim: if congress stepped into the breach they could create a new financing bank or authorize the treasury department financing bank to do it today. it could be done by sending today. it could be reauthorized by congress to have them do it across the board. sonali: a large mortgage bond hedge fund sent a letter to investors recently saying they believe the structures might change. under a future donald trump administration. how do you think >> that works? jim: well, these we began the financial crisis with fannie mae and freddie mac on september 8 2008. the government created a conservatorship over fannie and freddie, ultimately putting $192 billions of taxpayer money into them to stabilize their financing spirit the federal government has received more than $300 billion back on that

investment. taxpayers have been repaid handsomely. but, they remain in a federal conservatorship and have done so for the last 10 years. former president trump, during his first term, tried to end the conservatorships. there was a real effort made. but, he lost the election and ran out of time. so, he has made it clear that he , if you were to be reelected, would try to end the conservative sector began -- if he were to be reelected would try to end the conservatorships again. the biggest change would be being controlled by the treasury department. sonali: i mean in the economy under a trump administration? jim: it's hard to know. the republican platform has been published and is out there. the president, the former president in his speeches talks about 10% across-the-board tariffs on all imports in the

u.s.. we import about $4 trillion worth of goods and services a year. that would be a $400 billion increase in the price of goods and services coming into the u.s.. sonali: inflation. jim: well, a price increase per your tariffs are ultimately paid by the consumer. it's just a price increase. i am not an economist. but, economists say it would have an inflationary impact. the other big initiative he is talking about is the largest deportation program in american history of undocumented residents in the country. s he talks about 15,000,000-20,000,000 people deported. that would be hugely disruptive of labor markets and could be deflationary. if you have fewer workers to fill the factories, or, the

agricultural fields, or food processing plants, or restaurants. you will have real pressure on wages. that could build in some significant inflation as well. sonali: thank you for your time. that is guggenheim securities cochairman jim milstein. coming up, we continue the real estate conversation out-earning to luxury with sean hehir of trinity investments. stick it was -- a stick with us. this is bloomberg. all-day energy starts with clean hydration. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty.

>> and office has been decimated and continues to suffer. take that with a rate environment that is higher for longer than most people thought it would be. we have not yet meant to regular office buildings in the u.s..

do you think they have hit bottom? it's hard to say we have. it is hard to have conviction to go do that. sonali: this is bloomberg markets. i'm sonali basak. that was bgo's sonny kalsi. abigail doolittle is with sean hehir to discuss stress surrounding commercial real estate. abigail: sean, it's great to have you back. it has been about a year since we last spoke and you know sonny , larger than life. he was very honest yesterday about the good and bad. starting with the good. when we spoke last year your assets under management were about $5 billion in luxury hotels around the u.s. and hawaii. you have added a property in europe, $6 billion. in this environment you are increasing assets. the difficulty we are hearing about in office. are there ripple effects in

terms of a slow-moving crash through real estate that so many people are tracking? how do you see it? is it almost over? what inning are we in? sean: thank you for having me. i am honored to follow sonny kalsi a great friend and terrific guy. in hospitality we have had the benefit of being able to adjust prices dynamically both on the room rate side and food and beverage. in addition, we typically trade at wider cap rates than other real estate asset classes. if we are typically buying at a 7% cap rate and interest rates are now 8% there is a slight negative leveraged but with a value added investment we move towards positive leverage. other asset classes are tougher. you are buying at a full cap. you still need a 3% fixed rate loan to make the math work. we feel privileged to be with the type of assets we are in. abigail: it is tougher other

asset classes such as office and other areas of commercial real estate. could it take a lot of work through this? sean: it is tough and over the last four years i have learned the power of relationships. we have acquired assets through relationships with hotel brands, hilton, marriott, hyatt. we finance acquisitions through relationships with lenders. sonali: when you were here last time you are just refinanced. what is that environment like now? are you able to get financing easily? if other areas are not, wha is it about your company in hospitality? sean: we closed on about $2 billion of financing or refinancing over the last 11-12 months. it is about relationships into being disciplined about the types of assets we owe in the markets where we are. we are disciplined about florida, texas, arizona, all

destination type markets, all assets that are 400 rooms or larger, destination type properties disciplined by brands that are strong partners. abigail: american express recently reported a mixed quarter talking about spending being light in soft areas of discretionary. are you seeing that into the overall trevor picture? or is it pretty strong for your properties? jim: i am watching credit card debt, as we all are. luxury had a 9% demand growth in june. the economy end of the hotel segment was about 82% drop. we are in the right sector. i landed back in new york the weekend before july 4 and that friday was one of the busiest travel days in the history of the country. people are still traveling and our properties benefit from that. abigail: we look forward to speaking with you again, sean hehir principle of trinity

investments. sonali: thank you for your time sean hehir and bloomberg's abigail doolittle. coming up, carlisle's akhil bansal joins us for a large conversation about a big deal. the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically]

but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

sonali: let's check the markets hitting session highs in u.s. stocks. what a wild session. the s&p 500 now up almost 1%. the nasdaq 100 now at about .7%, .8% higher nearly. a two year yield here just around 440i believe. looking at a 10 year yield at 424.

softening after economic data we have seen. the bond market moves are starting to moderate on the day ahead of the pc data tomorrow. midea group is on the equity side. ford is having its worst drop since at least 2009 on a closing basis. on an intraday basis the worst day since 2020. it announced a second quarter profit fall in front of estimates and lowered a 2024 outlook for gas and hybrid vehicles attributing the results to quality problems with vehicles. that led to a surge in warranty costs. keeping an eye on new york community bank shares down after credit losses were worse than expected. there are concerns about outsized exposure to commercial real estate in new york. the companies as ceo works to transform it into a relationship focused regional bank. we will stick with the world of credit. high rate issuance for july is nearing 100 billion dollars. blue-chip companies like occidental and united health have been hoping to drive sales

to the fastest rate for any july since 2017 as borrowing cost have trended downward since april. think about elevated volatility this week. you have had bond markets and equity capital markets wide open. bloomberg's olivia reimann date reported on the reason behind the sales surge. what is the risk appetite? it seems insatiable. what have we sing this week? olivia: risk appetite has been insatiable in the corporate bond market and we are seeing that with companies coming and offering large bond deals. we had occidental petroleum seven $5 billion to refinance a bridge loan it took out last year for an acquisition. what was interested was the 8.5 billion dollars deal from unitedhealth for refinancing. you don't typically company -- see companies come to refinance that much in one slug. the fourth largest steel of the year. it was received very well by

investors. very strong demand. it shows even though we are in the summer period or corporate bond sale issuance typically tapers, we aren't seeing that at all this year's -- this year. if anything gets stronger. sonali: you are seeing high-yield bonds getting a bid. there was a fascinating column on the terminal over the weekend. the idea that the real trump trade is a high-yield bond. is that true? olivia: my sources are saying that it is true. people love junk bonds for many reasons. there are reasons high-yield would be advantageous in a red sweet, not only trump, but if they took the house and congress on the republican side as well. that is because, 1, 1 of donald trump's main platforms is to lower the corporate tax rates and that would bolster corporate issuers in the u.s. junk bond market helping them shore up financials and fundamentals and a lot of his tariffs and

protectionist policy attitudes would help high-yield borrower that pretty much have domestic exposure. sonali: bloomberg's olivia ramonda, thank you so much. carlisle continued a push into private asset-backed investing. we have been talking about it. it is hot market for private lenders. discover sold is more than $10 billion private student loan portfolio to investment vehicles and accounts managed by kkr and carlyle. we discuss it with the carlyle head of strategy solutions -- credit strategy solutions akhil bansal. it's a $10 billion deal. how many deals like that are out there in the market? can you imagine that other one liked is getting done even in the next six 712 months? -- 6-12 months? akhil: it is more of a shift of lending from traditional deposit taking banks into private markets. look at how many assets reside

on the bank balance sheets. trillions of dollars. even though it is a very large transaction i think it is just the tip of the iceberg of the amount of high-quality lending that resides under those balance sheets that will be looking on the private markets. it might not only be portfolios that exist on the balance sheets today. it is also a future lending that would have gone on the sheets. that is another reactive area. sonali: fascinating. even beyond the banks it was a large critical company as well. bring us behind the deal. why was it attractive to you? akhil: private student lending is a very attractive credit asset class. a lot of the loans are cosigned by parents. you have not only the students credit to look to, but, parent or guardian. and, the fact that the person you are lending to is getting an education makes the borrower more credit worthy. you have people with education that have higher earnings and/or more recession resistant. these are very attractive credit

attributes. it attracted us to this portfolio. and, private studio lending more broadly. sonali: talking about a multitrillion dollar opportunity off the heels of bank balance sheets. these are student loans. what other types of assets interest you? akhil: we are focused on high-quality lending. we have the medic view that carlisle that we are expressing them through. when we think about who will be a recession resistant cohort or population of borrowers to lend it to? we think the homeowner fits that bill. the homeowner has been very insulated in the inflationary environment. 40% of inflation is a shelter and housing cost. if you own your home and have a low coupon 30 year mortgage you have been very insulated from that. in fact, you benefited from the real wage growth you see over the inflationary environment. things like residential solar, aligning with a deal we did

older -- earlier, things around home improvement. even in areas looking at, secondly, mortgages were people don't want to refinance their first mortgage but are still looking to take money, out of all of the equity built up in their homes. sonali: how do you scour the market for decent credit quality? in larger banks, say, bank of america. if you are a residential homeowner there getting a loan or an auto loan borrower here, you are looking at credit scores of 770 or above, sometimes above 800. what do you think about the quality of borrowers as you buy the books like you did with discover? akhil: at carlyle we are always looking for an information advantage. it's not just about a fica score. it is, how can we use our platform and the breath of it to pull insights out of it to make us a better buyer?

discover it's a good example. we have a portfolio company called monogram that was very important in the transaction with a 30 year proprietary data set on a private student lending at other capabilities on the oversight and compliance around student lending. it gave us an edge in the asset class. that is how we tried to approach of the market. sonali: fascinating. i how do you feel when you look outside giants like discover? talking about a regional banking opportunity. this morning you saw new york community bank cell a large asset to a non-bank. what types of assets with the bank have to deliver? mostly mortgage is these days? is credit quality us from there as it is elsewhere? akhil: we are seeing regional banks focusing on higher quality loans. that's where they can get the best price as opposed to selling something more challenging where they will take a right out in a

loss and create a whole in their equity balance sheet. it's not only mortgages. there's consumer lending, small business lending, equipment and finance lending. that is all high-quality we are seen come out of those types of regional banking institutions. sonali: you mentioned risks -- recession resistant, things that can make it through the next cycle. yes, you saw great economic data this morning but you are seeing a slowdown in the economy more broadly. how do you feel about the risks out there now? akhil: we have to be cognizant. one of the big risks of our strategy is credit loss. we are seeing a tale of two worlds, particularly in the consumer area where you are seeing higher quality higher income, more assets owned their home, that borrowing or doing quite well in this environment. we are seeing stress down with the less creditworthy type of borrowers. sonali: thank you for your time carlyle head of credit strategy

solutions akhil bansal on the heels of a massive deal. royal caribbean is restarting its dividends for the first time since the pandemic. we discussed strong demand in the travel sector and risks out of there with the ceo of royal caribbean jason liberty. stick with us. this is bloomberg. this is bloomberg.

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sonali: this is bloomberg markets. i'm sonali basak. it's time for the stock of the hour. royal caribbean shows up around 20% this year, under pressure today, despite being the first cruise operator to reinstate dividends since the pandemic. the company raised its profit outlook for the third time this

year. it sees record demand. analysts are concerned that the growth in the amount of revenue made per cruise will slow. we have the perfect person to talk about it, ceo jason liberty. look at how your stock is reacting. when you put up a dividend and raise your forecast, what you say to investors today? jason: i don't think we can really understand the reaction to the share price. i always say, let's focus on what we can focus on, delivering the best vacation experiences in the world. clearly, we have been doing that and it is resulting in a flight to quality producing record earnings in the second quarter. we have significantly outpaced expectations. we raised to the back half of the year even further. raising our guidance for the year. our year over year earnings per share growth is 68%. as you mentioned, we reinstated the dividend.

we have talked about strong demand patterns that continue. we are at full load factor on our business. it's all driven by price. the other point i will make is one of the big drivers on the price side is we still trade at a significant discount to land-based vacation. the cruise industry is a small sliver of the $1.9 trillion travel industry. we wake up every day and try to figure out how we continue to take more share and close the gap to land-based vacation. sonali: do you think investor expectations are for consistent blow it out of the park rapid growth? you get out of the pandemic. you are looking at a market that is trying to sniff out any sign of a weakening consumer. how do you gauge that fear? akhil: we have now seen this for several quarters. sniff out is a good phrase to

use. we are trying to find some type of crack in the story around cruise. this year our yields were 25% higher than in claim 19. we are further ahead on the curve that are cruise peers in terms of recovery. a lot of it is comparables. there is a reality of a level of normalization that will happen here at our business. i think because they keep trying to sniff that out and they aren't seeing that in our business, it is a little bit of a conundrum for them to figure out why we are to sing this in cruise. i go and i point back to the reality. we use to trade at a 10%-50% discount to land-based vacation. the industry probably trades at a 20% discount. there is still a gap for us to close. sonali: let's talk about pricing. how much wiggle room do you have?

jim: when we entered in the year we expected our yields of about 6.5%. our current guide has that over 10.5% for the year. that's all driven by price. some of that has been close in demand. it is also the balance, as we are taking in new bookings each and every day. the willingness for our guests to pay more for those experiences, it's very unwelcoming to them. they are willing to pay it. they are also willing to book much further ahead. you see the extension of the booking window. our visibility is building more and more for 2025 and 2026. also they want to capture experiences that they will have on the ship. we see a lot of pre-cruise sale bookings. if you bilk -- book with us before you are on the ship you tend to spend at the ship. sonali: how does a 2025 and 26 look?

how much price pressure could there be on the upside? jason: we see the cash register ring every second of every day all around the world. we see a consumer that is continuing to be willing to pay more money for cruise is in the future and really captured the experience they want to have. we feel really good. our brand is so well-positioned across all these different segments. in the leaders of the segments, there is a flight to quality. we are focused on the concept of making sure we are set up to deliver a lifetime of vacations. this seems to resonate well with our guests. now that we have combined loading programs across brands, it's giving them a great reason to make sure that experience will happen on one of our cruise lines. sonali: i'm curious about the macro story.

look at inflation. there are signs it is starting to cool. look at expectations for interest rates coming down at the end of the year. at the end of the day is this helping you when it comes to the cost of goods. is it inspiring you to take on more debt if rates to come down? jason: to start on the balance sheets aside, we have gotten ourselves back to more or less a pre-covid balance sheet. we have more work to do to make sure it is secured. but, for us, lower interest rates can obviously free up some of the credit, not just for us, but for our guests. i think one of the things we look a lot into when we think about macro trends is we really try to isolate it down to our customers. our average customer has household income between 120 five dollars-150 dollars. they tend to be homeowners with strong balance sheets and they have good jobs for to go up that i'm to ultraluxury. you have household in the --

income, a lot of passive income. look at the customer we are addressing. they are actually very healthy. they are willingness to spend and plan into the future seems to be very robust. sonali: jason, we have to leave it there. royal caribbean ceo jason liberty. coming up, this company could be an outlier. technology ipos are getting harder and harder to appeal to investors. it does not stop the day or the year's largest listing. more on the ipo market next. this is bloomberg. this is bloomberg.

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sonali: this is bloomberg markets. i'm sonali basak. pour one out for the video. investment banks today. evercore stocks at a record if you can believe it. lazard jumping to the biggest degree since march 2020 with a more than 11% gain. now more than 10%, almost -- almost 11%. moelis rising. lazard hitting a new record under their new ceo. evercore announced record revenue yesterday amid what they hope is continued investment banking rebound. part of that is of course the

rebound in capital markets. remember, the sharpest technology selloff in nearly two years is threatening to make ipos and even temper -- tougher sell for investors. there are significant outliers. shares of the fintech platform one street surged in trading yesterday and today we have temperature controlled storage and logistics trying to lineage going public in the biggest ipo of the year. bloomberg's amy or reported on this. she enjoins us now. we had a major selloff yesterday. lineage is still outsized. how much demand is there for ipos in the market? amy: it's hard to say. lineage isn't really tired. the selloff was very tech driven. it's drawn out so much. if there is anything i would rather look at one stream. yesterday. one stream did perform. the demand for it was strong. then what we have heard was his

could price two dollars more than what it went for. it went for $20. that's above the range. it could be upsize as well. sonali: lineage opening at $82 per share. the ipo was priced at $78. it is at the secondary in a row you see a significant pop in the ipo market. lineage is not a technology company. do people want things that offer more diversity than technology in this market? amy: it is interestin the three biggest ipos of the year architect. gamber sports and viking as well. this stock gives a good diversification and is an interesting stuff. the only other listed peer is americorps. this is a very differing unique environment segment of the market that people are trying to diversify into. and also commit the size of it

is so huge as well. so, it might actually go into a lot of the reit index. that's probably why investors are thinking, maybe i will just put money to work in things like this. sonali: fascinating. you are seeing a 5% pop at the open of lineage. you think of the ipo market. part of the frustration is that the pipeline is just not that big for more deals, this is maybe one of the largest you will get this year. amy: that's probably true and also there are quite a number of companies that probably should have gone or are still eyeing the july or september time frame that might not even go. the timeline is fluid at the moment. sonali: with him in a still under pressure large-scale the ipo market gets even more attractive. that is bloomberg seining -- bloomberg's amy or. that's it for bloomberg markets. next ftc chair lina khan

joints balance of power. it certainly the woman of the hour. that is next on bloomberg. (♪♪) beaches rhythm and blues caribbean sale is now on. visit beaches.com or call 1-800-beaches. with so much entertainment out there wouldn't it be great... visit beaches.com ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some of the biggest names in streaming, all for just $15 a month. get the fastest connection to paris with xfinity.

>> from the politics to build of business, this is "balance of power." ♪

live from washington, d.c. >> joe biden gets back to work after announcing his plans to drop out of the presidential race. welcome to the fastest show in politics as the president sits down with benjamin netanyahu inside of that same oval office i'm joe mathieu alongside kailey leinz here in washington. this is a key moment for a president who made cease-fire in gaza a priority for his administration while it still lasts. kailey: it will only last for a few months as he confirmed to the oval office -- from the oval office last night as he views democracy is on the line and set his actions are in the name of trying to protect democracy and the legacy that he has and wants to leave, peace in the middle east, cease-fire in gaza came up, i wonder to what extent that will be expressed behind