caroline: from bloomberg's world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. romaine bostick is off today. caroline: the dollar goes lower. that helps commodities get a bounce. quite the comeback for equities. the s&p 500 snapping that losing streak, posting the best day in five weeks. industrial, equity stocks driving those gains despite of

course ongoing hawkish rhetoric coming from the fed. in fact, investors kind of getting comfortable with it, may be more ok with projected type. crypto not joining in on the party. bitcoin falling to its lowest level since january. this has to do with china. we will be talking about the u-turn in the treasury curve. joe: the treasury curve, that is where the real action is. last week, we saw the real flattening, a little bit of uptake at the end. a little bit of a reversal. we are still way flatter than we have been for most of the year. caroline: this comes as we get a more hawkish fed. we'll get more of a read on that tomorrow, giving evidence in front of lawmakers, saying

inflation has increased notably. before that hearing tomorrow, economic activity, employment continues to strengthen. growth on track for its fastest rise in the caves. gains should pick up as the pandemic continues posing this risk that he still feels perhaps we should take all those dot plots. joe: let's bring in bloomberg cross-asset reporter katie grayfield. the curve backing up a little bit. of course, the week after a fed decision, everyone talks. does it feel like they are going to soften last week's message? katie: it is kind of a pick your own adventure. you have 16 fed officials. you're going to hear what you want to hear. caroline: 16 of 18. katie: i was going to say, they added some more. earlier today, we heard from kaplan and bullard, that may be

thinking about inflation is a risk. you also heard from john williams, saying he is viewing this as due to short run imbalances. maybe that gives a shot in the arm to cyclicals, maybe helps explain why we did see that u-turn. friday was such a violent move for almost every asset class. caroline: today, yields actually sunk originally on the back end and slowly worked their way higher. japan was pretty ferocious. katie: it has been interesting to see this sort of divergence between international and u.s. buyers. i have seen a few analyses this year that a lot of buying has been coming from japan, from foreign investors, simply because there is nowhere else to go. we did see that big in the first quarter. i would expect to see more of

that going forward, that move in asian hours sort of reversing. joe: let's talk crypto. microstrategy continuing to buy the depth. the old texas hedge continuing to double and triple down. it will work out for them eventually, right? katie: microstrategy is like the gift that keeps on giving at this point. they had that corporate bond issue. now, they are buying more bitcoin. the interesting part, they said in the press release, they bought for about an average of $37,000 per coin. as we know, bitcoin had a really bad day today. we did the math and they could have a write-down of $77 million already on that purchase. caroline: when will they have to take the write down? katie: that should come at the next earnings report, which

should not come until july. we know that they are going to have about a 284 million impairment at that earnings report already, so this should just pile onto it. joe: the meme stocks, anything else going on? katie: crypto. we all have been trying to track this ball of money that surrounds the assets and really feels like it has deserted crypto entirely. caroline: there was some small oil exploration today. katie: it is hard to keep up with but it is definitely not in crypto. we interviewed nelson on quicktake and she said they have seen six straight weeks of outflows. it is mostly retail behind it, not so much institutional. caroline: katie greifeld, always keeping track of where the money

is rolling around. we have to keep you abreast of it. we will focus on crypto any moment. the first venture capital fund focused on black crypto startups. we'll be talking about the mission to target companies and overlooking untapped markets. this is bloomberg. ♪

caroline: tomorrow, voters in new york city will take a stand on the mayoral primary. there were no fewer than 13 candidates on the democratic front.

now, the brand-new ranked choice voting method will be used to sort them out. charlie pellett explains how it works. charlie: democrats voting in new york's mayoral primary will choose their favorite candidate as usual. but in this ranked choice election, they will people to give as many as five names on the ballot in order of preference. voters will face complex decisions and a set of intricate rules. a candidate with more than 50% of the first votes wins outright. if no one hits that mark, the candidate with the fewest first-place votes is eliminated. every ballot cast for that candidate is tabulated and the second-place votes are as it amongst the field. the process repeats until just two contenders remain and the one with the most votes wins. ranked choice voting is new to new york but not to the u.s..

it was first used in a local election in ohio in 1915. san francisco, minneapolis, and santa fe are among the cities that currently employ this in municipal elections. and, in 2020, maine became the first state to adopt the system for a presidential general election. while ranked choice voting eliminates the need for runoffs, it will take time to tabulate the votes. election officials say the winner may not be known for weeks. but with registered democrats outnumbering republicans by a huge margin in new york, it is likely that whoever prevails in this primary will come the city's next mayor. joe: for more, we welcome bloomberg's new york bureau chief shelly banjo. there is going to be a vote tomorrow and will find out two

or three months from now who wins? >> tomorrow, the pulse close at 9:00 p.m., then shortly after that, we will know who is the leading candidate. because of ranked choice voting in new york, what we won't know for sure is who is actually the winner, will most likely go on to be the mayor. caroline: is it close? shelly: there is so much new stuff this election. ranked choice voting for the first time, early voting for the first time, they have moved the primary election to june when it is normally in september. people have been kind of pushing past each other in the polls. it is really hard to know what this election will serve up. joe: one of the big industries in new york city, that may be of interest to some of our viewers, wall street. what are policy things that could affect some of the

companies and banks? shelly: wall street really cares about some of the issues you and i care about, which is quality of life. they care about crime, about being able to take a subway, what will happen to midtown manhattan. a lot of wall street backers have also given money to candidates who are very pro-charter school. that is one area we have seen folks who are very pro-wall street give money to as well. it is kind of not just a -- caroline: philanthropic endeavor, shall i say, as someone very much involved in the school situation right now. i am interested in it. obviously, i have no ability to vote. are they willing to see taxes go up particularly in new york? are they looking for spending echo obviously it is heavily wall street but heavily democratic. shelly: new york is definitely

one of the highest if not the highest tax jurisdictions. i think what a lot of executives in general want to see is their tax dollars put to work. they are saying, it has always been a high tax area, high cost of living. we want to see what we are going to get for it. we have had a mayor os not been willing to engage with wall street. in fact, his campaign promise, i will not pander to wall street and pander to executives. now, executives want to see a mayor that will partner and give them something for the tax dollars they have been spending. joe: i remember this time around last year, it is the 1970's again, brutal cuts and all of that. of course, we have fancy economic recovery around the country, all the acid value gains, stock market, all that stuff. are there any issues facing the city budget, ameliorating

inequality, things like that? shelly: the answer depends on your timeframe. right now, we are good. we got a huge influx from the federal stimulus funds that bill de blasio proposed to put to work immediately. the issue is, because of that increased spending, in two years, you are left with a bunch of programs you committed money to, without actually the money to pay for that. short-term, ok. long term, it depends on what happens when the next mayor comes into office because a lot of that money has been spent or allocated. caroline: what are mayoral candidates saying about getting people back to offices or not. and, using the mta again. shelly: subways are a really big problem. we are still at about half.

which is still up a lot. blue wearing masks, it is cleaner than it has ever been. i have been taking the subway, it is definitely cleaner. however, people are worried about crime. there is a saying that it is not just the actual crime rate but the perceived crime rate that matters. the perceived crime rate is bad and also the actual crime rate is bad, shootings in particular. that is something the next mayor will have to tackle. caroline: thank you so much. p2 -- stay tuned tomorrow night for bloomberg's special coverage as people close in new york city. this is bloomberg. ♪

caroline: time vertical headline. bank of america predicts oil may hit $100 a barrel next year. new reports that global oils -- global oil consumption will outstrip supply in 2022. it also says investment in new production will be curbed by environmental concerns. four of hsbc's most senior bankers in the u.s. are leaving the firm. hsbc is reportedly planning to revamp its american global banking business to benefit asian clients and those who want to invest in asia. clients are largely avoiding co-ops. big spenders are seeing opportunities for discounts.

they are now favoring newly developed buildings that have no lifestyle restrictions or intrusive financial questioning. no financial questioning when you are trying to get into property in manhattan? i will believe it when i see it. mover discussing the rally but not so much in crypto. joe: the coins having a bad day falling to their lowest level in several weeks depending on what you are looking at. volatility still high. as big as you are getting the coins. the volatility has not really slowed down either. it is going to be a while before they are stable. venture capital fund audacity capital is set to be the first focused on crypto startups, and helmed by a black woman. it aims to invest up to $100,000 each in as many as three businesses. here to discuss is the founder and general partner, erikan

obotetukudo. tell us, what do you see as the opportunity for your fund? erikan: thank you for having me. fundamentally, we recognize that the next generation of the internet is being created today. there are so many entrepreneurs from all over the world that have the vantage point to create the internet to exist today. we want to back them. we recognize there is a whole continent in africa and so many parts of the world that have overlooked founders to become the next geniuses to become -- to create the better internet, better financial systems, and better lives for people all over the world. caroline: erikan, you are a woman who knows africa. you have invested there, connected investors with entrepreneurs. you have been a jazz position, i understand, at one point focused on helping find a cure for aids in brazil and south africa. what drew you to crypto?

erikan: fundamentally, i have been someone who has been overlooked by financial institutions my entire life. as an immigrant in the united states, my family has sent hundreds of thousands of dollars back to africa every year. i can't walk into a traditional bank and be serviced for my needs to move money across continents and oceans. i understanding of blockchain and crypto was that i can spend money without intermediaries including banks to my family members in nigeria without dealing with the incredible costs and challenges, and frankly the inability to track my money effectively. when i was living in nigeria and it was the beginning of a recession, i was not able to move my money in the local currency because it was deflating. i could not even move it to the u.s. dollar because the national government had said, there is a freeze on the dollar and the dollar had become gold. when i realized, as one of the

largest black nations in the world, the biggest producer of oil in africa, and one of the weakest exporters of intellectual capital, i knew we needed an alternative system. i dabbled in ethereum and realized blockchain has a way to move money around the world. joe: when you think about the types of apps or companies that allowed normal people to interact with crypto, because it is extremely hard to wrap one's head around. a lot of the de-fi apps have a long way to go in terms of the usability of the general public. what are the types of problems that you are looking to see solved in the companies? erikan: fundamentally, things are challenging. you are so right about that. it is the perfect time to now create the layer that is

accessible, that is available and readily understandable by the general mass public. we are looking to invest in countries that recognizes the infrastructure can be as public aid it as it is but at the end of the day, we need to get as close to the 8 billion people on this planet so people have the opportunity not only to build wealth but to do so in a way they understand. we are looking at decentralized apps, which are essentially layered on top of all this funny sounding infrastructure you hearing about today that essentially make you not only aware of what the technicality is, and allow you to on-ramp smoothly with seamless efforts to build wealth. we are excited about those seamless apps and solutions that make the infrastructure more accessible. caroline: of course, focused on those being billed by people of color in particular. we are lucky enough to interview basketball stars, celebrities,

people of color are gutted to crypto, got into -- people of color who got into crypto, got into nft's for example, that there are less blocks to getting in at an early stage. how many people of color are building at the moment? many companies are there opportunities to work in? erikan: fundamentally, since you wanted such a great job in breaking the story, we have had incredible inbounds. there is a community called crypto for black economic empowerment, which includes 150 crypto all-stars. right there alone, there is about 70 companies worth making a solid investment today, seeking some of the largest amounts of capital in the space. right now, we recognize there is easily 100 companies we look to invest in.

with visibility, representation matters so much, so many people being able to see, i can do that, i can raise 10 billion -- raise $10 million, build something that has a $15 billion market cap in four years. this will signal to so many black and brown people around the world that they can be the leaders on the new internet and we can be the first one to go into them and say, we believe in you and value your genius. caroline: we want to thank you so much for coming on come on your birthday. erikan: it's my 30th, y'all! caroline: amazing. great to have you with us. erikan obotetukudo, go have fun. founder and general partner of audacity capital. what energy come a joe. caroline: -- what energy, joe.

joe: it is hard not to get excited. "bloomberg technology" is next. this is bloomberg. ♪ (announcer) back pain hurts,

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>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco and this is bloomberg technology. coming up in the next hour, bitcoin, the crypto selloff shows no signs of reprieve. we