manus: good afternoon, welcome back to bloomberg markets. it has been four weeks of decline in the s&p 500, a wholesale reappraisal of risk, hard landing, the response mechanism from the fed. dipping into the close this friday coming off of one of the biggest rally since 2022. bank of america says the data has yet to flippant hard landing. if you get rate cuts and reasonable growth, 17% upside in the stocks. this is deeper into correction territory rather than the s&p 500 which bounced from the near

drop of 8.5%. what is the fed speak going to be a jackson hole? you will get cpi next week. you have had a 30 point range from this time last week to 3.66 back to 3.93. this is around if you believe the yen carry trade has been undone. some of the moves in the s&p 500 are quite dramatic, at one juncture it was a really hefty slide on these markets. you can see expedia is up by over 10%. they say, better than expected second-quarter results, but they warned about a softening and travel demand going through this current quarter and that could lead to lower expectations for the rest of the year. this was breaking news in the past couple of hours, stock is down 1% recovering from lows.

we understand their set to lay off thousands of employees, their second round of layoffs this year. cisco announced 4000 job cuts in february. think of that in conjunction with intel on job cuts, and you understand the size and scale of the downsizing to come in tech. let me use the word resizing. they say it puts the whole thing in perspective, the jobs report last friday and the massive paranoia about the unwind of the carry trade from japan. that cascaded lower. a multiple of things which really cascaded into this market on monday. there have been incremental levels of her pre-vest the week has gone on -- incremental levels of reprieve as the week has gone on. you can see the negativity on monday about intra-fed meeting,

rate cuts along with 150 basis points,, that has soothed a little bit because the thinking out there is that it may not be as hard landing as we presumed on monday. you have had five days. what is your take as you close out the week? >> it is really nice to have a calmer friday and hopefully a calmer weekend, so that is reassuring. the scenario where you have negative like last friday and everyone frets all weekend, that exacerbated some of this because a lot of the issues that the market put together on monday have been there for a while. it is important to remember when you take a step back that we had very low volatility through much of this market move and it is not uncommon to have markets pullback by 5% to 10%. often they are spread over a few days instead of such a compressed period.

we were in the camp where we were building durable portfolios going into this. we also have been saying that we didn't think that we had enough volatility, so we wouldn't be surprised to see a 5% to 10 percent pullback. the underlying economy is pretty durable. as we have seen, we have gotten a lot more reassurance on those things that things are bubbling along at a nice pace across the spectrum. there are areas to watch. manus: i think that we have never was there so much of a sigh of relief breathed over a one-week jobless claims as i saw yesterday, in the bond and equity market. it shows you that we are almost living day to day. solomon at goldman sachs said that this whole move may be healthier. i was chatting this morning, earnings and the second quarter of 12%. earnings are reasonable. i had jp morgan with me on real

yield talking about back to back 50 basis point cut. if we get anywhere near a 100 basis point cut in 2024 and solid earnings, what does that do to the equity market exposure for you? carol: it is important to remember that whether or not you get the cut, the market is pricing in those cuts. when you look at where the tenure has gone, mortgage rates coming down, and an uptick in home equity loan applications, there is stuff in the economy moving whether or not the fed moves when he five or 50 basis points in september and beyond. -- 25 or 50 basis points in september and beyond. you have a pretty sturdy underneath the economy in general, and it has been pretty nice as we have seen earnings come in and you start parsing through individual companies, there is the attention to margins. you are seeing topline growth and also bottom line beats. the bottom-line beads are because companies are going into

this strong market weekend and our being very careful in what they are doing. manus: as we moved off the base case of a deep growth scare and a fed deeply behind the curve, and that debate is still there. we will have a volatile debate between now and jackson hole and hopefully get clarity around jackson hole. saying that the hard landing is not confirmed yet. or he was talking about holding the 200 day moving average. you are then in the territory which can see a much accelerated selloff, 14%, 19% from the highs. carol: markets flirt around the 200 day moving averages. they don't necessarily precisely hit. sometimes when you have the intensity that you had on friday , you see things and an intense daily move like that, things go down a little bit, but it is an

aggravation of the data and an aggravation of what's out there. we don't suspect -- we still think that there is enough underneath this economy to be supportive. consumers are fraying at the edges, but if we get rates coming down and the rates on the credit cards, and hopefully some prices coming down as well, especially as we enter the back-to-school season, we continue to think that the aggregate of everything, whether or not you briefly touch through violating a 200 day moving average, piece of it depends on where it settles, a piece of it depends on if it goes through and keeps going. we don't think you'll see that. manus: how important is fast-moving flow? a lot of institutional money already exited a lot of these big tech mag7 trades and they were materially underweight that exposure. we were catching up and retail in terms of july in the repricing. how important is it that they

have revisited that and in theory bought that dip? carol: you have the potential to either repurchase that dip or step back in. the reset that we had was actually pretty constructive and healthy for the continuation of markets. also, if we did get a bulk of the carry trade, a lot of the carry trade -- carry trade unwound, a lot of that carry trade was speculative and things participating more strongly in technology. as you started unwinding that, think that the fundamentals of the market as well are going to be an healthier position now than a couple of weeks ago with how bifurcated trades have become. manus: you said the nuance is important, whether it is on an intraday basis or holding. there will be vol between now and jackson hole. it has been a tumultuous week for the equity traders and etf flows.

emily graffeo joins me with the flow. just finishing that conversation, it is interesting in terms of those who are take opportunities. you have been looking at some of the flow and we have been seeing buying this week in terms of the inflows. emily: we have been seeing that buying. it is nothing crazy. only a billion dollars net inflows into equity etf's this week. you didn't see that rush to the exits. one etf that stood out was soxl. this goes 3x leveraged in index semiconductor stocks and it had 1.6 billion dollars of inflows. it was the second-best equity etf for flows all week. i think that's a sign that that speculation is alive in the market. those people still want to bid up the names that did well earlier in the year. where you saw the outflows, it is obvious the rotation trade

we were talking about a few weeks ago is over. we saw $2.5 billion leave the small-cap etf. em and japan stocks soft, outflows as well. a lot of trading in vix etf's. one goes two times the vix. on monday when we saw the vix spike it was up 84% and then dropped 40%. manus: the volatility is beginning to look expensive. there is a great debate on the bloomberg terminal about if the vix made it up to the 65 level or not. are these traits becoming more expensive? what is the flow tell us in terms of the appetite for protection? emily: we are seeing traders want more protection as the signs point to an economic slowdown. one example is northwestern mutual. i spoke to their cio earlier this weekend he pointed out that they bought longer duration bonds earlier in june. it has paid off pretty well.

they are of 3% after buying $2.7 billion of tlt, the blackrock long bond etf. they said that they have been waiting for a recession for a long time, as have a lot of people. th -- they are saying that it is coming soon in the next three to six months when you look at how rapidly the economic data is deteriorating. they are buying this protection. he called it an equity hedge in long bonds. manus: there is a nice risk-report. the risk-reward is interesting in the terms of collapse in rates. the same viciousness on the upside. you have steven mnuchin, it is an interesting week for markets. thank you for being with us. we are joined to discuss life

life 360 since going public. ♪

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manus: it is your friday edition of bloomberg markets. the top of the hour -- the stock of the hour, life360 released its first quarterly earnings report since going public in the u.s.. soaring after boosting its consolidated revenue forecast for this year. we have the ceo of life360 and cofounder. chris, a great set of results. the market likes it. you talk about where the next leg of growth is to go. you focus on international. that is the thing that caught my eye. where will you grow the most

aggressively over the back quarter of this year into 2025? good afternoon. chris: we are extremely excited about overall growth. we have been doing this for over 15 years. what we are seeing is location sharing is ubiquitous.one of the trends that propelled us in the u.s. are in europe. people understand location sharing is a tool, not something creepy. other areas with a strong driving culture, revenue is growing quickly as we launched the full feature set. we will see europe from a monetization standpoint grow quickly. the rest of the world, growing everywhere as we focus on taking u.s. trends and pushing them throughout the globe and creating a tailwind for more generic services like ones launched by apple or google. it helps us because we have a differentiated offering. manus: i was curious to know. you can track the kids, the pets, the range rover in the usa.

kids, pets, seniors. what is the demand -- what is the demand strongest around? chris: for monetization it is families with teens. our users across all life stages. teens use it with teens. little kids. aging parents. families with teens, we have driving safety features like automatic crash reduction with emergency dispatch at a fraction of the cost of the legacy alternatives. that is driving most of the growth. we get excited about some of the things that you mentioned. eldercare is not something that we monetize but seniors are on our products because they don't like being on devices that make them feel old. pets is new, but soon we will have a full lineup of gps tile devices where they will be part of the membership here at no extra cost.

we think people will convert more over different lifestages as we improve retention and our early days at the company. manus: if i said what is the most valuable piece of data to monetize, what is it? chris: it isn't just the data. it is that we have trust and intent. people come to us for safety. we realize the position we have in people's lives. because you are coming here for safety, we know how you drive, we know where you live, when your kid starts a new school, when you get a new job. if we do it appropriately, they are moments of value for customers. kids going to school, home security system, moving to a new location. these are areas that are untapped because of the user base we have. manus: you have been involved in a lot of companies. this has been a dramatic week for technology. high drama for markets. you are the founder and ceo of a company like yours and your stock takes a smack like it did on monday, what goes through your mind?

what is your worst scenario when you see that? chris: the honest truth is, with the market turmoil i didn't look at the share price a single time. i had to do it before earnings because we were talking to analysts, but we are in it for the long haul. during covid our downloads fell 70% overnight and we rebounded quickly. everyone bought at the bottom and was patient. the market was down and we were quickly able to pivot to generate cash. people stuck with us. i ignore the market gyrations and try to model that behavior for our employers and investors. we aren't taking easy wins. we are in it for the long game. this category can be ubiquitous, and if we execute we assume the share price will take care of itself. manus: are you actively looking for acquisitions? i think you said we will be focusing on execution. are you an active pursuit of a

buy? chris: we are not in active pursuit. we want to follow through on some of the swings we took before the market had us in a downturn. we will have a very valuable currency. our strategy is having a dominant position, and we want to be the hub for families. anything that accelerates that is a possibility, but nothing is active. i am thinking probably a year from now it will become more front and center, but we will cross that bridge when we get there. manu: coming up, another day, another big media company with another huge write down on their cable tv networks here on bloomberg. ♪ ♪♪

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manus: this is bloomberg markets with me manus cranny. paramount stock rebounding after $6 billion write down on cable tv networks. paramount joined warner bros. in taking this step, another sign of weakness in the traditional tv industry. hannah miller joins me around the desk. interesting to warner bros. relative to how the market has taken this from paramount. a $6 billion write down, a reconciliation moment that traditional format is under pressure. what is different about paramount? hannah: there is the backdrop of

their pending deal with sky dance media, a merger deal. it is supposed to close in 2025. they are working towards it. other bidders can submit offers but there is optimism about how sky dance can transform the business. they identified $2 billion worth of cost efficiencies. manus: a 15% cut in the u.s. workforce. do you think that that is the beginning of the trimming? we talked about it is about sky dance. what does sky dance do with paramount? how do they move paramount forward? this is about sky dance and redbridge coming together. hannah: sky dance partnered with redbird capital. they are drilling down saying that you need to tighten the belt, trim the fat. in june, the three co-ceos a paramount identified $500 million worth of cost cuts.

they said on the earnings call yesterday that the layoffs are part of that. this is kicking off a tough time for paramount. they will have to drill down, identify where they can trim fat , and make a leaner business. with these traditional tv networks, we are seeing, obviously, the streaming platforms being emphasized. the layoffs are targeting various departments, marketing, communications, support functions within the company. it will be interesting to see who is left at the end. manus: we saw good news on the streaming platforms yesterday from warner bros.. the ad revenue and streaming was up, overall acquisition on streaming was up, and it's a competitive environment. what is reflected in that story? hannah: paramount saw an increase from the paramount plus streaming service but they lost subscribers. they lost over 2 million people

because they had a deal. in south korea they lost all of those subscribers. manus: they raised prices, but nowhere near as aggressively as the others. hannah: it was only one dollar or two dollars price increase depending on the tier. manus: an 8% rise in paramount versus 25% at disney plus.thank you for context, day one and day two on the media landscape. markets matter the most. close of business on friday, the stock market off the biggest rally in the s&p 500 since november 2022, going for a fourth week of declines overall. the nasdaq, down ever so slightly this morning. the debate is, the size and scale of rate cuts, you have had a narrative over the past hour that you will get 50 basis point back to back cuts from the federal reserve according to jp morgan. oil is up .9%. we are on retaliation watch from

iran to israel. what will the size and scale of the retaliation? good afternoon, from new york. ♪ xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. ryan t. writes, "moving is stressful. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪

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announcer: from the world of politics to the world of business. this is "balance of power." ♪ live from washington, d.c. ♪

joe: vice president kamala harris continues the swing state roadshow, as the trump campaign tries to seize in a message. welcome to the fastest show in politics. i am joe mathieu in washington. we will sit with bloomberg's gregory korte, and a special conversation with congressman glenn ivey from maryland, on the campaign rhetoric, the senate race in his faith and how to rebuild the khalaf key bridge in baltimore. our panel is in place. so is charlie pellett to help us start with wall street, a look at the markets. how we doing? charlie: it's been a wild week on the political front and it describes what is happening in markets. what a week. bloomberg going for the gold, the s&p up 0.2%. we got the dow up 0.1%. nasdaq back in the green, a turnaround from the last