jon: i am jon erlichman. welcome to "bloomberg markets." kriti: and i'm kriti gupta. we even had a rally in the bond market before you saw a complete reversal. the 10 year yield is back above 4%. only higher by one basis point. that was not the story earlier where you had yields actually

lower. the bond market and stock market were good. clearly, that has diverged further into the session. the dollar following suit and flat on the session. but that intraday volatility will be crucial and something that translate into the earnings story that jon will touch on. oil moves lower and you have that feedback loop. brent crude $90 a barrel. some of that reaction is coming from an expected spr release in the week. we will have all eyes on washington for that. jon: no doubt. we have been watching energy stocks in canada and to your point about the earnings story, as we looked at the s&p groups, generally speaking, everything is moving up. but a notable move higher in industrials because defense stocks have been climbing. the numbers from lockheed martin encouraging the crowd. f-35 sales were strong. on the other side, toymaker

hasbro's profit cut in half as consumers rethink what they are willing to pay. you have activism over salesforce. we will continue to watch and see how that plays out. staying with technology, all eyes are going to be on netflix after the bell tonight when it reports quarterly results fresh off that planned ad launch. that stock is down 60% this year and the stream is expecting potentially they could add one million subscribers. kriti: something we will be watching. one of the big stocks we have been watching today, goldman sachs after posting earnings. offset an investment banking slow down. oppenheim or earlier discussed whether this could be discussed. >> it is always lumpy.

we and most other analysts have been forecasting a decline in trading revenue next year. on the other hand, it may not happen. i think the world's central banks have stirred the pot to such a degree that investors are much more active than they were in all those years of financial suppression. it may well surprise us even though we and everybody else is saying it is not quite sustainable. jon: let's bring in sonali basak who interviewed the ceo earlier today. that suggesting maybe the trade train cannot be relied upon. let's talk about m&a activity. what is the outlook for goldman on that? sonali: i will bring you m&a and trading. david solomon said m&a is likely to slow. given the uncertainty in markets, the pace of m&a

activity, new deal activity has slowed and the expectation of 2023 is that it will slow. he is also still seeing executives do you want to still do deals. frankly, goldman has been a big beneficiary. the investment banking business, while down overall, the advisory part that tends toward m&a, was still $1 billion the past quarter. what is the run rate moving into 2023? i want to bring you another quote he gave me because this applies to trading, leverage loans, investment banking. what they had said is they are running a tighter risk lens. they are running more cautiously. he says, i think people are watching government that markets and thinking about the places where there is leverage. i think that is important to keep in mind. i took a look at goldman's value at risk. if you look at the trading desks, it is not up across every business line. where was up was interest rates

in particular compared to the other businesses. when we talk to the cfo about leverage loans they are keeping a handle on risk appetite. let's think about what david solomon had to say about the economy. he is worried about the tightening and keeping an eye on it. he says when you tighten economic conditions so quickly, and we really are tightening them very, very quickly, you are going to have disruption in economic activity. kriti: speaking of, i want to talk about him relative to his peers. we know brian moynihan, jamie dimon, they have been vocal about the strength of the consumer. put david solomon's view into the concept of broader macroeconomics. sonali: jp morgan, jamie dimon, said consumer cracks might start next year. david solomon voiced concerns about the consumer. we did not hear that from brian moynihan. for bank of america and j.p.

morgan, they were the most beloved of this cycle, but are they the most vulnerable into next year? jon: great reporting as always. thank you for the latest on the goldman sachs story. that is sonali basak. developing news tied to twitter. the team breaking this now. twitter froze the equity awards accounts for employees on monday as that deadline to seal the deal with elon musk approaches. ed ludlow breaking that news. walk us through the significance of this. ed: these are the accounts twitter employees check based on stock compensation. the check for status and a notice was placed on those accounts monday. essentially it told them they had been frozen. the ability to trade. there was a quiet period in place anyway, but the company is anticipating this deal. twitter shares pushing higher. it is a sign to the market

twitter is proceeding as expected to work to close this deal. the deadline installed by the delaware chancellery judge is 5:00 p.m. on the 28th. but there have been confusing signs from both parties, commentary about what the intentions of both sides are. these accounts are frozen and staff were notified monday. what was interesting is that was technically a day off for twitter employees when that happened. kriti: you say it is in anticipation of a potential deal but are there any other interpretations of what this could mean? or is this set? ed: it says, this allows schwab to perform final reconciliation of employee accounts prior to close of the acquisition. as is normal in many tech companies, a big part of compensation is equity compensation. we reported previously a big chunk of restricted stock was supposed to vest for a large number of employees november 1.

according to some sources, many twitter staff were considering holding off leaving the company until that vested. but it still has to get taken into account when the final math is done with regards to the take private deal. elon musk talked about how any equity or public market investors in twitter could potentially roll over their investment into a private entity. remember, a large number of stockholders are current employees. it is part of that final closing math. kriti: certainly, we are going to be watching. ed ludlow, thank you as always. keeping up with all the developments, the stock up almost 2%. something plaguing twitter is the labor market as well in addition to the manufacturing numbers. we learned this morning u.s. factory production rose for a third straight month, signaling manufacturing remains strong given the solid business investment in demand for consumer goods. joining us for prospective on

the state of the economy is jennifer lee, senior economist at bmo capital markets. give us your take on the strength of american manufacturing. jennifer: good afternoon. i cannot believe here we are in mid-october and we are still talking about whether they will be a hard landing or soft landing or any landing. i think the data this week has shown it is going to be a softish landing but still looking for recession. this just shows the economy has been holding up so far over the last three quarters. but as we go into the fourth quarter things are slowing and we are looking for negative growth the first half of next year. jon: jennifer, obviously the market uncertain about what that means for the path of rates. the market this morning was keying in on the latest bank of america survey of investors. and within it, they seem to see rising of a policy pivot the next -- rising odds of a policy

pivot the next quarter. that idea is still front and center with some investors. what do you make of that? jennifer: it is very interesting but it will depend on how inflation plays out. at the end of the day, it is back down to core inflation. we are looking at 6.6% rate, the highest in 40 years or since "i eye of the tiger" was on the top of the chart. we are looking for another 150 basis points the next few months into early next year. this is on top of the 300 have already raised. how that impacts the economy, again, mild recession in 2023. for rate cuts to becoming part of the merit of an early 2024. kriti: i am curious about the long-term inflation rate.

the federal reserve is expected to go back to 2% in the long-term. but is that fair to say it is realistic given the fact there are major moves from a fiscal perspective from the biden administration nearshore to bring back the manufacturing that has been exported? is that factored into the long-term inflation perspective? jennifer: great question. i think it is but how long it is going to take before we get back to 2% is another story. we are not looking for things to cool down to that pace until late 2023, early 2024. the whole idea right now is to continue to bring it down from 6.6% core cpi down on the steady pace. we are expecting it just to elevated the next few months. jon: jennifer, grey to get your perspective. thank you for stopping by. jennifer lee from bmo capital

markets joining us. we will talk about inflation, supply chains, the health of consumers overall. we will speak to joe kudla, founder and ceo of vuori, which opened a flagship store in manhattan. it is aiming to take on lululemon and other big names. that is next. this is bloomberg. ♪

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kriti: this is "bloomberg markets." i am kriti gupta alonso jon

erlichman. vuori is opening the first door in manhattan back by softbank which values the company at $4 billion. it is aiming to take on lululemon with a pretty ambitious global expansion plan. joining us as joe kudla, the founder and ceo of vuori. thank you for joining us. what struck me as you are looking to build 100 work and mortar stores by 2026 when people are pulling back. they are worried about demand destruction. wide ramp up now? joe: great question. we love our stores. vuori was started out of a retail store in our backyard in san diego. we learned to build community. we learned to develop authentic connection with our customers. and we recognized early, digitally, customers were testing our key items and when they walked into the store, they

got to experience the full assortment. they got to touch and feel our product. we work in an industry where touch and feel is important. how things fit are important and you cannot replicate that store experience digitally. i would also say as you grow a direct to consumer focused brand the costs of advertising have gone up year-over-year. you reach a point where speaking to customers, acquiring new customers is more effective and efficient. we are really thrilled for a lot of reasons about our strategy. jon: certainly, we have seen a lot of interesting growth retail stores over the years. as the old guy in the room, i remember when lululemon was entering the market of new york. you do focus particularly on men

but we are talking about the other players, like lululemon. what is the strategy? everybody wants a piece of the pie. joe: from day one hour business is built around versatility. in our business distribution is one thing but product is what wins over time. we are maniacal about making incredible quality product and it is product that is going to support you through a tough workout. we are working with the best performance materials available. but we are designing them in a way within an aesthetic you actually want to wear everywhere. it does not just identify u.s. of the going to the gym -- identify you as someone going to the gym. very fast-growing for us is outdoor rooted in outerwear. travel commute, the everyday

sportswear styles built with better fabrics that are breathable and move with your body. we are a product first company and we believe by providing great service and great distribution strategy to complement our innovation pipeline and commitment to quality is a winning strategy over time. kriti: we have about 30 seconds. at the beginning, you talked about how excited you are about brick-and-mortar. i have to ask about the e-commerce experience as a lot of people are using digital as their primary mechanism to shop. does that create a buildup in your inventories? joe: we saw some buildup related to challenging supply-chain environment. but ultimately, we have been faring better than most considering we have been acquiring market share, we have been growing extremely fast at scale. and we do not anticipate that trend materially slowing down. we are bullish on this holiday

although we are cautiously optimistic planning for 2023. there is a lot of inflationary discussion you have been having on the show. we anticipate it catching up with the customer but, to date, we have not seen it and inventory levels are healthy. kriti: very quickly, any plans to go public? joe: you now, it is definitely a viable outcome for our team and our shareholders. we want to look out for them but right now, we are very much heads down, building our business, implementing infrastructure to scale not only a growing domestic business but expansion globally. yes, we are keeping an eye on the market. it is a viable outcome for us but today, very much heads down having fun growing the business as a private company. jon: good to have you with us. joe kudla, founder and ceo of vuori.

we are going to take a quick break. the u.s. box office has bounced back in a big way. "black adam" will hit theaters this week. we l hear from the star of that movie, the rock. this is bloomberg. ♪

jon: this is "bloomberg markets ." i and jon erlichman with kriti gupta. time for what it is worth. $5.9 billion is the u.s. box office number this year. smashing where we stood this time last year which was $2.8 billion. this number is going to expand with "black adam" hitting theaters this week. $75 million for the film. it stars the rock and is not the only business venture for johnson.

bloomberg sat down and talked about his energy drink business. have a listen to what he had to say about the growth of the brand. >> we did pretty good our first year. right now, we are the fastest growing energy drink in the u.s. market. we are crossing over $100 million and the extrapolation -- and i'm not good with math, you're much better and your viewers are better -- so, you know where that is going. the main thing we can do is to continue to improve the formulation, continue to grow the brand, expand in canada and continue to deliver. kriti: we also have the chance to ask johnson about the wwe where he gained early fame. the company stock is up over 50% in 2022, outperforming the s&p 500. earlier this year, the departure of vince mcmahon fueled speculation about the potential sale of the company.

johnson spoke about the future of the company. >> i have known vince a very long time. he is a businessman and they are business people. i think the key with selling the wwe or whatever the acquisition looks like -- and i have had long conversations with the co-ceo and known him since i was in hawaii. i have a show on abc called "young rock." the producer is nick's sister. good connective tissue. i think the key, if there were a sale of the wwe, is to make sure whoever acquires the brand and that property, you have got to love the wrestling business. of course, you can love the asset and you can love everything that comes with it. but you have got to love the professional wrestling business. so, i think that is the key. it is so unique and so

different. you have got to have someone that can really love it. if not, you can kind of see the writing on the walls what will happen. i love the wrestling business. i grew up in it. my grandfather, my dad, he started here in canada where he was born. i am not quite sure if a board seat is in my future, but possibly other things are in my future. we will see. again, the best person to buy that company would be a group who love the wrestling business. kriti: that was dwayne johnson, otherwise known as the rock. let's get a quick check on the markets. something else is having a good day and that is the stock market. s&p 500 up 1.5% on the heels of a fast and furious game yesterday. the bond market was fairly mint until recently. the 10 year yield above 4%, pairing earlier gains when it

comes to the bid for the bond market. the bloomberg dollar index is flat. stick with us. "the close" will have everything you need to know. for jon erlichman, i am kriti gupta. this is bloomberg. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done. millions have made the switch from the big three

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>> keeping you up-to-date with news from around the world, here's the first word. i am taylor riggs. amason workers voted not to unionize. you had 406 of the 650 ballots against unionizing. this is the second defeat in a row, adding to their struggle to expand influence beyond new york city. president joe biden will pledge to codify abortion protection into federal law. this according to a democratic official who spoke anonymously. a month shy of midterm elections the pledge will be the president's first ever bill i