ukraine. he said russian president vladimir putin still has a quote, massive invasion force around ukraine, and there is no sign of de-escalation. >> moscow has made it clear that it is prepared to contest the fundamental principles that have underpinned our security for decades, and to do so by using force. i regret to say that this is the new normal in europe. mark: president biden will speak with german chancellor olaf scholz this afternoon. the call will come ahead of an emergency summit of european leaders on ukraine tomorrow. g7 foreign ministers will meet in munich on saturday. the top republican on the senate banking committee says the federal reserve can function for now without president biden's nominees. speaking at a virtual conference today, senator pat toomey said he is happy to proceed with four

of the five nominees. the pennsylvania republican vowed tuesday to keep blocking a committee vote on mr. biden's nominees until he gets more information from sarah raskin. a new government investigation has found a former trump administration official misused his position. the interior department inspector general says the department's former secretary, ryan zinke, try to advance a project in his montana hometown, and lied to agency ethics official about his involvement. the report also says he gave incorrect and incomplete information to an official who asked him about his involvement. the swedish telecom equipment maker ericsson may have made payments to the isis terror organization. the company ceo told he newspaper the money may have been used to gain access to certain transport routes in iraq. erickson says it continues to quote, invest significantly into

an investigation into its iraq based operations. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ matt: good afternoon where it is 1:00 in new york. i am matt miller, welcome to bloomberg markets. here are the top stories we are following from around the world. investors are awaiting the minutes from the fed's last policy meeting where jay powell says the central bank is on track to raise rates for the first time since 2018. we will have a read on how credit markets are positioning for a more hawkish fed.

and heineken sounds the alarm on surging inflation. the brewer warning and is facing the worst price pressure in a decade. we will hear from the ceo later on in the show. first i want a quick check of what is going on in the markets as we see equity indexes falling and the s&p 500 down 1/10 of 1% right now. we were up yesterday on a headline that russia was going to pull its troops back from the ukrainian border. today we fell on concern from the u.s. and others that russia won't actually do that. the nasdaq right now is down 1.4% as tech stocks lead the way down. investors are buying oil after the biggest drop in crude yesterday. we see a big game right now, 2.5% for west texas intermediate and investors are buying treasuries as well, pushing that yield down. let's see how credit -- as we

get minutes in just about an hour's time. joining us now is winnie cisar, global head of started g at creditsights -- of strategy at creditsights. thank you so much for joining us. let me ask you first, what you expect from the fed minutes today. what are you going to be watching for? winnie: thanks for having me today. the fed minutes, everyone is going to be focused on any sort of messaging around rate hikes, the pace of rate hikes, the tolerance for a 50 basis point hike versus 25 basis points, and also importantly, discussions around the balance sheet, how that will run in the background, as powell said. and how those things may interplay with each other, or if there will be an alternate rate

hike and wind down facing approach or if it is going to be a tandem cross up. matt: what kind of wine down are you looking at -- wind down are you looking at? will they sell assets? how difficult will this be for credit markets? we don't really have a roadmap for this kind of quantitative tightening. winnie: you are right, we don't have a roadmap. i think we are going to be falling -- in terms of just letting maturities rolloff rather than actively selling down assets. we saw that when the federal -- when the fed wound down credit facilities. it was more of a general wind down. the credit markets, definitely are facing some pressure as we see a significant reevaluation in fixed income across the board, including treasuries.

that has offered investors a wider range of places to go with their capital, to put cash to work, rather than credit markets being the only game in town which had been the case for a lot of 2020 and 2021. matt: what do you expect to happen to spreads? i've heard 150 on ig is the pain threshold and we are still far from it. winnie: i think 150 is an interesting target as a pain thd because you have to keep in mind the overall borrowing costs for that investment grade market and when you consider the pain threshold rather than just a pure spread level, you could have a 150 spread and a 150 u.s. treasury yield and -- are still quite low all things considered. if we get to 3% on the 10 year and a 150 spread, then we start to bump up against what average coupons are for the ig market.

our expectations for spread in the near term is that we continue to -- in this fed tightening cycle and the kick off of the cycle and inflationary pressures, but we also have -- going to ask -- going to retrace back to titer levels once we hit the second half of the year, where we can start seeing some inflation and see those base effects kick in a little bit and get some clarity around some of the things that are disrupting markets right now, which includes the continuation of covid and also the russia-ukraine situation. matt: how does that situation affect these markets and the spreads? just more volatility? winnie: at a high level, more volatility, just general tolerance for risk is definitely muted right now. also the russian-ukraine hostilities do have the bus ability to impact commodity prices, especially in the euro zone, especially energy

commodities which could take a pretty meaningful chunk off of growth in the euro zone over the coming years. that would definitely dampen sentiment as well. on the u.s. market, both investment-grade and high-yield are still pretty highly leveraged to commodity prices, particularly oil prices. having them up in the $90 per barrel area is a net positive for the market as long as consumers can continue to digest those higher energy prices and have room in their budgets to accommodate them. that is a tricky balance to figure out where things are going to shake out. matt: so do you expect tightening, inflation to lead to tightening spreads later in the year? winnie: yes. we have a constructive view on credit risk. we have seen a very interesting kind of risk off sentiment, combined with -- and now we are getting to the point where all

yields are certain to look attractive again, especially on a longer-term horizon. at 3% for ig, that is the level we've been telling investors you might want to take a closer look and start thinking about putting the marginal seller back to work in the u.s. investment-grade index, especially since the long end of the curve is earning you between 3% and 4%. it has been quite some time since we have seen those levels, especially as the recovery rate remains intact. matt: thank you so much for joining us. winnie cisar, global head of strategy over at creditsights out of charlotte. coming up, heineken warns it is facing the worst inflation in a decade and says consumers may cut back on beer purchases, threatening the industry recovery from the pandemic. we will hear from heineken's ceo next. this is bloomberg. ♪ is is bloomberg. ♪

matt: this is "bloomberg markets ." let's get something that caught my eye. despite the talks about soaring inflation, u.s. consumers are spending money. numbers released today shows the value of overall purchases rose 3.8% in january, and the advance was nearly double the median estimate of 2%. when you look across the board, the increases were consistently higher than forecast. if you look at retail sales x

auto, it was triple the forecast. retail sales ex auto and gas, almost four times the forecast. a big game today in retail sales. the last two reports were disappointments. the market was kind of bracing itself for a third disappointment in a row. we didn't see that though, we saw a big beat. one consumer company that is dealing with higher inflation and concerned about it is heineken. ceo dolf van den brink spoke with francine lacqua earlier today and discussed heineken's strategy around rising prices. dolf: we try to find the right balance. we are clear that is the absolute input cost increase, we want to pass off in pricing as we did in the second half of last year. this is not new for this year. it was already happening in quarter four of last year.

a lot of the pricing for 2022 is already locked in, in negotiations with major retailers advancing well. we are not the only ones. everyone is facing the same kind of input cost pressures. so far, so good, but we are deliberately being cautious on the outlook. francine: and that is fair enough. your share prices reflect that much. it is interesting to understand where you think you can increase prices. if you look at craft beer, close to a lot of people's hearts, does that get wiped out because of inflationary pressure? dolf: when you look to our own -- are premium brands are growing at double the rates of our total portfolio. the total portfolio is up almost 5%. premium beers were up nearly 10%. up double digits in 60 countries

across the planet. what we are seeing, brands with strong equity and brand power are quite resilient, given the pricing environment. so far we are not concerned for a major down trading happening. i guess it is more of a concern on the broader resiliency with consumers as disposable income will be affected by energy cost and general inflation. francine: how do you think that in the u.k., inflation could hit 7%. that will hurt how much disposable income people have. can you increase prices in other parts of the world and subsidize the u.k., or would you raise prices on premium brands in the markets where inflation is increasing the most? how do you think about that? dolf: what we are looking at is that the input cost. the input cost affects different countries in a different way. typically emerging markets where you have a currency exposure

adds a higher increase in the cost, input cost. therefore we are taking more pricing, historically but we expect that for this year in emerging markets like brazil and nigeria. price increases for example in the western european markets will be lower than them. matt: that was dolf van den brink, speaking with francine lacqua, the ceo of heineken, and she is the anchor of surveillance: early addition. still ahead, the biggest banks including morgan stanley and goldman sachs under the microscope with u.s. authorities said to be scrutinizing their block trade practices. that conversation is next. this is bloomberg. ♪

matt: -- lucrative market for block trades. we are now learning that morgan stanley's role in the unraveling of bill hwang's family office further -- furthermore we bring on our wall street analyst. of course gary gensler is hard at work at the head of the sec, doing a lot of work on market structure. what we know about the block trade probe question mark >> this is a -- probe? >> there were those massive block trades that are now coming into question, reviving these questions around the business itself and not just the banks but also the relationship with the hedge fund and the nash which is why this probe is garnering so much attention across wall street.

remember, morgan stanley had a key role, but also that morgan stanley commands more than a fifth of the block trading market overall. this is a business that has become very commonplace but as a gentle business. a lot of private trades that are made aftermarket and now it is committed occasions between the firms and the bankers that are being reviewed by authorities. also important to say nobody has been accused of any wrongdoing yet. matt: one employee has been put on leave. are they just looking at the structure of block trades on wall street, which they probably should have been looking at for the past four decades or are they looking at specific problematic trades? sonali: they are looking at a few things. there are firms embroiled in these investigations themselves, and the communications with hedge funds. that is an important thing to keep because in the last couple of years, what you have seen

happen is the hedge funds themselves set up equity capital market debt. this is a trading strategy. you have to look at morgan stanley, and -- who was part of the block trading business at morgan stanley who has been put on leave. communications between the bank and investors. i don't want to discount the role of the buy side as well. when you look at archegos, it is the regular did bank entities that can be looked at from the sec perspective, from the fed which has already been looking at the prime brokerage relationship between firms like morgan stanley and there hedge fund clients, but the hedge funds themselves are harder to regulate. matt: and we will point out nobody has been accused of any wrongdoing. i think about this from a structure point of view. i was talking to joe saluzzi and he pointed out something i did not realize, which is that some big banks on multiple dark pools. morgan stanley is one of them. operating at least three dark

pools. there has been a long-standing rule that you can't trade more than 5% of a stock volume without quoting it. a lot of banks have been trading for .9% on each of the dark pools that operate -- dark pools they operate -- 4.9% on each of the dark pools they operate. sonali: there is a very large scope of things here. talking about the block trading issue is not even talking about the shortselling issue that they are also looking at separately. at the end of the day, this is a lot of questions being asked of the sell side and the buy side. if you talk to sources as well, it is not as though there aren't market functions that are very important that have been created through block trading. the ability of keeping prices stable when large blocks come to market. the question here is what was done, if anything, that was not

above par and not meeting existing rules in this market? matt: i think you want to be below par. sonali: i don't play golf so i don't know. matt: it is interesting that we get this from archegos, and we get a lot from the mean stock. you mentioned shortselling. there is a lot of concern about flows from that, a lot of concern about settlements as well. we could see t minus 2 go to t minus one. sonali: that is a great point. we just reported this week how much of this was a daytrading structural issue, versus hedge fund shortselling structural issues. at the end of the day, if you are a firm like morgan stanley dealing in equity markets, you care about both because you're the biggest -- on wall street, you have the biggest equity trading deck on wall street and you are one of the biggest equity underwriters in the world.

both types of trades matter to you. regulators are trying to catch up. matt: thanks very much for joining us. sonali basak, with wall street. i don't play golf either. sonali is going to stay with me as i read the bloomberg business flash. a look at some of the biggest stories in the news. citigroup has exceeded goals for management diversity. black employees in the u.s. make up 8.1% of managers and roles from vice president to managing director. globally the share of women in these roles has increased to more than 40%. this is a story that sonali has been reporting on at bloomberg. workers at amazon at a facility in staten island, new york will vote next month on whether or not to join a union. the amazon labor union faces long odds. they lost an election and amazon

facility in alabama last year. we covered that closely. disney is dropping a mask mandate for fully vaccinated guests to its theme parks in the u.s.. face coverings will become optional for inoculate in visitors in both outdoor and indoor locations starting tomorrow. speaking of disney, the company announced it plans to develop a string of real estate projects around the country. beginning in california, the new residential develop business will be called story living by dizzy -- by disney. the project will include at least one section for residents 55 years and older, who still apparently love mickey mouse. homebuyers will have the option to choose from estate, single-family homes and condos. disney employees -- i guess that is how they describe employees, will operate the community

association. sonali, they already have a town in orlando called celebration. sonali: would you move there? matt: i would move there. i'm not 55 yet, but i'm getting there and i feel like i would relate well to a lot of people. sonali: i would move to epcot. matt: i will be in celebration. i can drive my golf cart over and visit you for beers on occasion. sonali is going to stay here, covering wall street for us. we are back after this break. this is bloomberg. ♪

mark: i am mark crumpton. high-level diplomacy continues today aimed at calling the

situation between russia and ukraine. president biden will speak with the german chancellor olaf scholz this afternoon. it comes ahead of an emergency summit of european leaders on ukraine tomorrow. the g7 foreign ministers will meet in munich on saturday. president biden has ordered the national archives to release donald trump's white house visitor logs for january 6 to congress, rejecting his predecessor's claims they are subject to executive privilege. the panel probing the attack on the u.s. capitol has requested logs for the white house visitors on that and other days, as well as other trump era records. last month the supreme court rejected mr. trump's bid to block the release of the records. in canada's capital police are winning demonstrators camped out on the streets that they must leave immediately or be subject to arrest. that's under a new emergency power invoked by prime minister justin trudeau and ontario's

provincial government. the warning was handed out in the process zone and it's a more aggressive approach by law enforcement after ottawa police chief resigned on tuesday. divide administration says new trade tools needed to confront china. the u.s. trade representative's office said china's state led model has harmed american companies and workers. it accused china of failing to keep promises to pursue market oriented policies that made it joined the world dragon is position -- world trade organization. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪

john: welcome to "bloomberg markets." matt: top stories from around the world. retail spending roars back to life in january, surging by the most in 10 months after disappointing in december. consumers spending money and full force despite inflation. while the fed tries to come back -- cutback inflation, we await the minutes coming later today. investors trying to assess the size of the interest rate hike in march. it was a rough week for a firm. the stock fell over 40% in the past five days. we will speak with the ceo and founder max levchin on what this means for the future of by now, pay later. all that coming up. john: as we await the fed minutes we don't have to necessarily wait to see the

market that is concerned about inflation and the path ahead for higher rates. weakness across north american stocks. the nasdaq drop, we are now off more than 10% for the year. did signals when it comes to the growthier names, despina cautious year. -- it has been a cautious year. we are waiting for the fed minutes. for what it's worth, we want to highlight the inflation story. we have seen it in canada today. the latest consumer price data accelerating to a new three decade high in january. that will add to pressure on the bank of canada to start raising interest rates as early as next month. plus, comments today from a deputy governor at the bank who says they are on alert to watch for the inflation risks, which could be persistent and they are ready to act. it will be interesting to watch. everybody is now expecting to

see hawkish moves by the central banks. we were in a conversation earlier today with a well-known economist david rosenberg who feels they will be an important balancing act between how far or how aggressive central banks are in the fear of tipping and economy into a recession. matt: inflation has not held back the u.s. consumer from the retail sales numbers this morning. we heard from shopify that they are concerned about inflation. they are concerned about spending. more likely this huge drop you're looking at in and that stock -- it is down 18.5%, the biggest drop since 2020. it is due to covid or the lack thereof. the company said the covid triggered acceleration of e-commerce in the first half of 2021 and the form of lockdown said government stimulus will be absent from 2022.

that has scared investment off, reducing the market cap by about a fifth. john: huge numbers. we are moving into this new retail reality. you are seeing that spending day that you just referenced in the u.s. roaring back to life. maybe people not to make as much shopping online. let's get more perspective on the retail sector now from farla efros, president of hrc retail advisory. thank you for being with us. talk to us about what you have been seeing on the ground. pandemic times. a lot of online activity, but those are retail sales numbers today that suggest a broad-based amount of buying out there and people getting out and doing it. farla: the issue is we have been stuck at home for 20 for months. the inflation is going up and consumers are very excited to start spending money, but on different things. it is hard to predict what's

going on. it has been such a dynamic up and down between 2019 and today. what you are seeing is people are spending money on things like outdoor dining and vacations. we just did a study. 39% of people want to go on vacations now. as canadians we always have a bit of a resistance. we want to ensure we are still saving and budgeting as well. matt: those are not typically american qualities. we do have the same spending behavior in terms of we bought goods, americans did during the lockdown. same is true of europe. i was in germany. you could not travel. people spend their money on stuff. now that you can get out -- you point out vacations. experiences or services are where we see the spending. is that the case? farla: that is 100% the case.

people want to travel. if you look at the high-end luxury, that is going significantly. people want to continue remodeling their homes. they want to get out and have experiences. prior to the pandemic we took those experiences for granted. that is where you are seeing the shift of the dollars. when the pandemic hit, a lot of the dollars are being spent within homes. now we want to spend them outside the home. we are seeing the growth shift into different categories than it was before. john: when it comes to retail strategy, your bread-and-butter, for those retailers that are catering to people who are impacted by inflation -- prices are going up which means less money potentially to go around, what kind of strategies are working right now? farla: it's about the online strategy continuing to work. it's about redefining the customer experience in store.

back prior to 2019, the notion of retail payment. today to about the consumer being the driving force. they are making the decision of when to go to the store and why they want to go to the store. it's about having the right stuff in the store for that consumer and the right experience. it is truly a shift in where it was before. matt: in terms of retail spending we saw month of disappointment. december was a shocker. we were heading into the holidays. now we have seen a big beat. does this change the narrative for you? farla: yes. some issues we saw were the fact we ran into a lot of supply chain issues. we cannot take that for granted. we also did not know -- if you think about canada. we were open and closed. there was a bit of a holdback. things are starting to open up and we are moving away from this notion of a pandemic into an

endemic. people are saying i feel like i can -- i am free and we can spend some dollars today. matt: thank you so much for joining us, farla efros. president of hrc retail advisory talking about inflation and consumer spending. coming up, we will speak to affrim -- affirm ceo max levchin . it is one of the biggest buy -- that i say spotify? buy now, pay later is what affirm is famous for. max levchin comes from the group that started paypal. a great interview with sonali basak. this is bloomberg. ♪

matt: this is "bloomberg surveillance." time for the stock of the hour. did you get maker roadblock is heading to it's worth day ever. we said that about a couple of companies. results showed a slowdown in growth for the same reason essentially is the drop in shopify. the covid boom, and then the covid bust. kriti: the videogame sector was booming and it doesn't have the same momentum it does anymore and people go out to live their lives. what's interesting is that on the surface the numbers are pretty strong. revenue of 83% year-over-year. average daily users up to about 50 million. a lot of good news on the surface.

bookings up 20%. if you compare that to what the street was estimating, you run into problems. compared with the street was estimating, bookings were lowered. the estimate was $786 million. that is where you are starting to see the stock market really punish roblox shares, something you are seeing across others this morning -- this afternoon. john: no doubt. thanks for that breakdown. q-tip for that stock today. -- a huge hit to that stock today. we have talked about shopify, and affirm, the recent tech darling that is now facing some struggles. the shares losing 40% of their value. we will speak with the ceo and founder max levchin about what's going on and what this performance means for the right now, pay later model. -- buy now, pay later model.

this is bloomberg. ♪

matt: this is -- john: this is "bloomberg surveillance." shares of affirm have plummeted over 40% in the past five days with a deeper drop today as shopifty disappoints wall street. ceo and founder max levchin along with sonali basak. sonali: i'm wondering if you can bring us inside the conversation you are having with investors and why such a muted reaction as you were trying to pivot your business. is there something you are communicating with them on how quickly you can pivot and when it will start the payoff for them? max: i am not trying to pivot our business at all. my long-term investors have been externally supportive and appreciative of what we have

done. the market is having a bit of an identity crisis, as you just covered. we are not. we deliver and continue to deliver and forecast exceptional great. look at the last quarter's numbers. 20x merchant coverage. better than 100% each. the thing the conversation you were alluding to is the question of you are growing but where's the revenue. we grew by 77%. that should give you a good sense that as we scale these giant partners we also improve the unit economics. over a long time business that grows at 100% plus or plus or minus rate and improves the economics generates enormous cash flow. scaling is what we are doing and we are not staying away from that whatsoever.

sonali: one question is if you're working with partners like shopify shows slowing growth, how much are you tied to their fortunes and tied to the fortunes of amazon to the extent that one is the partnership going to pay off and be rewarded in a bigger way? max: i think the market will decide what the market will decide. we are growing extraordinarily well within shopify. far faster than shopify just reported, which makes sense. we are gaining excellent traction with the merchants. we have worked with walmart.com and amazon, target, large partners and hundreds of thousands of smaller merchants. the coverage they and the expansion is not limited by the growth in commerce. it is how much share we are taken away from other payment methods, credit cards in

particular, and how we are helping consumers buy by creating transactions that were not exist at all. the affirm affect was not there before. i feel very good about our growth prospects with our major and small partners, but also within their overall volume. i think in terms of the payout to investors, if you look at the transaction costs and look at the trends of the volume we are producing, multiplied a couple of years, you will see a staggering amount of free cash flow. that is where we are heading to. i'm not going to promise on this date you will start seeing positive numbers, but that is a huge goal for any company. you want to be self-sufficient and generate cash flow. matt: the buy now, pay later

thing is relatively new. you were in the paypal mafia. i love how she describes that, the line which we use. you have been an innovator in the pay space for decades now. what does affirm have with buy now, pay later that is able to hold all competitors? why can't any bank come into the space and do it? isn't it more expensive and a time of rising rates? max: is far more expensive for consumers to use credit cards. my argument has been from inception it's always very expensive for consumers to use credit cards because no one can do the x financial math in their head. -- can do the x financial math in her head -- exponential math in their head. it makes the consumer feel in control. that is not something most banks

were startups are willing to do. it is building a product that is consumer-first. it is hard to do without exceptional technology and better risk controls and underwriting. that is the unique secret sauce that propelled us to this place of growth and beyond. rates rising, the ability to underwrite good risk versus bad risk is a key advantage. the financial situation becomes less rosy in the last 10 years but we benefit from it. consumers need us more. john: i want to circle back on that point. you started the conversation by talking about the general market reaction to companies that are growing. we were having daily conversations around higher interest rates. you say this environment is potentially beneficial to your business at a time when we have seen the markets selling off a

lot of these growth stocks because of fire interest rate. max: high double-digit percentage of affirm's volume is 0%. the consumer does not pay any interest. before and after the fed changes the rates, the credit card may have been offer you a night percent apr which seems low and reasonable. your credit card moves with it and the price of credit from your piece of plastic will go up. affirm's reaction will still be zero with no late fees. our differentiation vis-a-vis the traditional payment providers improves. consumers become less and less easy with it's going to happen in the personal cash flow as the rates go up and various news cycles tell you about scary things that happy with hyperinflation. affirm provides clarity and transparency to the end consumer. we have seen incredible demand at the beginning of the pandemic as consumers were trying to figure out how to make ends

meet. we expect as the economic climate worsens to see more demand. sonali: i'm curious about this. you have credit card companies throwing rewards at clients. tons of buy now, pay later companies are hopping up that allow companies to use their credit cards to buy now, pay later. that is like double leverage if you think about it. max, are you worried at all about the underwriting out there and with a can mean for your rivals in the banks? -- and the banks? max: i worry for my competitors and certainly for anyone who lends money in a form of a line of. , as you commit to align you hold the bag whatever happens with the consumer because the extended credit. we thrive in an environment where consumer gets a sense of clarity, knows they are in control. most importantly we are actually very good at underwriting and

have lots of exceptional data that shows we do well. if there is one thing i would like the market to understand about affirm, delicacies and default are in our decision-making. the vast majority look at their book and say what will happen, look at the macroeconomic environment. that is not how we run the company. we decide what acceptable to latency and defaults are acceptable to us so we can grow the pace we want. if the environment worsen we will tighten and address it and change settings literally every single day. all that makes me feel very comfortable about the performance of our book. not as much about the competition. matt: very interesting, max. your unique abilities are in your underwriting. what you are offering to the consumer is clarity at a time of increasing complexity. max levchin, founder and ceo of affirm. really appreciate your time.

sonali, thanks for another great guest. as we await the fed minutes coming out in about four minutes, we are watching for any news on how they plan to combat inflation. it's very difficult to do that with monetary policy if it is all from supply chain challenges. we are watching to see how they intent to reduce the balance sheet. john: jay powell did not relet a 50 basis point move coming up -- rule out a 50 basis point move. matt: john, thanks very much. this is bloomberg. ♪

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>> the most crucial moments in the trading day. this is "bloomberg markets: the

close." ♪ caroline: 2:00 p.m. in new york. this is bloomberg markets. romaine: we are awaiting the release of the fomc minutes from that january 15, 16 meeting. keep an eye on the markets that are lower on the day. s&p down more than a percent here. we have seen interesting moves in the bond market. the 10-year yields moving higher. the two-year moving in the opposite direction. taylor: the higher price is lower down to about 154. i'm looking at the 20-year. there are two basis points higher. it was relatively decent. we are getting at least the minutes released. we