kriti: this is bloomberg markets. i am kriti gupta. right now, covering the national the faa outage. also, alix steel in the studio. alix: i'm holding down for -- holding down the fort here. the s&p is up by 0.6%. the question becomes, why? how much are we front running that cpi number? also, the nasdaq up for the fourth straight day.

we haven't seen that since the beginning of september. also taking a look at the bond market. lots of supply coming on right now. yields are biding their time ahead of that cpi number. let's get a snapshot of where we are right here in the u.s. tell me about where you are in la guardia. how is it going? kriti: it's going. we are looking at a much calmer situation than this morning. there was a lot of panic looking at the faa outage. they had grounded the entire flight base in the united states. nevertheless, in la guardia, looking at 47% of planes delayed, 11% canceled. a lot of people sitting and waiting around. let's see if there's a solution by the end of the day. alix: and how long it will take everyone to get up in the air. earlier, we caught up with jeffries. at this point, it just points to a larger problem in the industry. >> it underlines the problem

with the faa that we need to modernize our systems, elect an faa administrator. bill washington was nominated in july. it is still not official. i think it just furthers the need for modernization, whether it is the faa or the defense universe as well. alix: let's get more on the faa outage. guy: -- helane becker joining us. what was your take away from what we were seeing here? >> yeah, hi. this is the first time this has happened in a couple of years, since before the pandemic, but it has happened before. for all the decades that i have been covering the group, we have been talking about faa modernization and it's not getting done. part of it is that it's always part of the budget in washington, and it has to be funded.

and part of it is that it is still mired in technology. until those get resolved, these outages will occur from time to time. i think there are all these delays. we estimate something in the order of 5000 delays and about 1000 cancellations today. i think we ran those numbers around 11:00. it is mostly, from what i can tell, domestic. the international flights that were in the air were allowed to land. the international flights that are taking off, i believe, are scheduled to be taking off this afternoon and this evening as well. alix: -- kriti: this is creepy, over in la guardia. this is certainly a highlight of southwest issues at the end of last year. how much worse could it get, and what is it going to take to

really renovate the entire system? helane: yeah, hi. i thought it was very ironic that the department of transportation complained bitterly about what happened with south -- with southwest, then almost two weeks later had their own outage. it is going to take billions of dollars. the fact that i've been doing this for many decades, something like four, and i'm still talking about the same issues that i was talking about when we first started, it is frightening. i think that the technology is there. the money has to be allocated and it has to be properly spent, and not frittered away. alix: what airlines are best positioned to get up and go, get running, and which ones will

struggle the most with these issues? helane: the biggest impact is the airlines with domestic networks. you look at southwest and they're having the biggest impact today because they have the largest u.s. domestic network, then you look at the other big international airlines, like american and united, which also have a lot of domestic flights, especially regional airlines. as you think about getting back on track, the regional airlines will be most impacted in the short term because those flights get canceled as the airlines try to keep their longer hall flights on track. there will be missed connections , there have already been, and i think the airlines are working very hard to allow people to change their plans, if they have that flexibility, or alternatively reroute them through other hubs in an effort to get there to where they are

going -- get them to where they're going. we are talking about billions of dollars in investment in software that is necessary to get the air traffic control system and many of the airline systems themselves up to current technology, or even think about the technology that changes very rapidly every year. it's interesting to me that the airline industry were early adopters of technology. they went with mainframes in the late 1960's and 1970's. then, the bankruptcies that occurred after deregulation made it so that they didn't have as much money as they should have had to invest, to keep bringing systems up to current standards. now, the airlines have to think about, what does it take to make sure they can get the airlines

started on time every day, and the faa has to think about what it has to do, to not suffer outages like this one. alix: of course, this is coming at a really crucial time, where we don't actually have a formal director of the faa. phil washington, formally of the denver international airport, still waiting for confirmation from congress. let's go back to the airlines specifically. i'm curious how much of the issues that are magnified right now from the faa outage are really kind of expanding on the legacy of some of the personnel issues post-covid. helane: here's the thing about the faa. it gets about 10,000 or 12,000 applicants a year for the faa academy, to be an air traffic controller. and during the pandemic, for about 18 months, they didn't train anybody. all those air traffic

controllers that started after the strike, when president reagan fired those air traffic controllers in 1981, are now coming up on retirement. mandatory retirement for an faa controller is 56. you're talking about a group of people who cannot be older than 35 years old to start the academy, who are not highly paid, who are tasked with keeping the system on time, and running safely. the faa has two functions. safety and security is one, and air traffic control is the other. as far as the air traffic control network goes, nearest i can tell, the low pay -- just to back up one second, it takes about four years to five years to become a fully fledged experienced controller. you don't come out of the academy and go to work in new york, chicago, l.a., miami. you go to work in a smaller airport.

what they're finding is that air traffic controllers, when offered to busier airports, don't want that because the cost of living and some of these markets is very high and they can't afford it. so, they stay where they are. that is impacting the network. then, you add on the certification of unmanned vehicles and the space launches that we are having, and you get increased workload for the faa, and you get decreased on-time performance for that commercial airline industry. the faa also has to hire more people. the airline industry and employment in that industry is back to pre-pandemic levels. alix: not an easy problem to fix. thank you very much. helane becker, cohen senior research airlines analyst. back to this. stocks are still higher. i want to bring in elyse ausenbaugh over at jp morgan.

where do you looking at today with the cpi? what are we learning? elyse: i think there's a lot of enthusiasm around a few different things. one was the cpi report with the goldilocks scenario. number two, china reopening. number three, this potential that we are probably closer to the end of this fed hiking cycle, that a lot of people might have been prepared for otherwise. alix: where is the risk into tomorrow? is it all of a sudden inflation ends up higher than we expect? elyse: i think it's an apt question. maybe you see people sell the news, if that number comes in on a month over month asis. i.b. don't see as much of a rally if it inns up surprising us in a favorable way. to the extent -- to the extent that it comes in higher than expected, you will see some recent rally come out of the market and an adjustment of those fed funds, futures, expectations that are currently

suggesting it's a tossup when the fed meets in a couple of weeks. alix: do you feel the markets and the fed are still at odds? elyse: i do. i think it is still very much the base case for folks out there on wall street. you have seen fed officials come out and try to talk down some of this enthusiasm. that officials are insisting that they're going to take the terminal rate above 5% and hold it there for a long time. the market buys this piece about keeping market rates integrate -- elevated, but they're calling their bluff about how high they will take interest rates. i think it's really going to come down ultimately to tomorrow's data and what kind of messaging we get on february 1, when they come out with that decision. alix: who wins, the market or the fed? do you bet against the fed or not? elyse: they always say, don't fight the fed. a piece of wisdom one of my mentors gave me was that you must always take the fed seriously, but not always

literally. our base case assumption is that the fed stops at 5%, but that doesn't mean that the implications of this monetary policy tightening aren't going to have the collateral damage that we and a lot of other folks on wall street have been talking about heading into this year. elyse: where are you hiding out? elyse: we are not necessarily hiding out. core bonds are one of our main ideas, but we are in this mode where we want to be balancing these often save allocations in more opportunistic areas, especially in parts of the market we think are already reflecting that pain. that includes small-cap and mid-cap equities, and semiconductors have recently been an area where we have grown more constructive. alix: take a look at the russell to see what small caps are doing today. of about 0.8%. appreciated. thank you for your patience as well. elyse ausenbaugh, global investment strategist over at jp morgan. we are going to talk to the ceo of alumina coming up next.

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alix: this is bloomberg markets. i am alix steel. kriti gupta is in la guardia. shares of illumina tumbled this week. shares rebounding today in the session. i want to head over to the jp morgan health care in san francisco. kelly lyons is standing by with the company ceo. >> i am here with francis desouza of illumina. you came up short of what analysts were anticipating how much of this is just a temporary hick, given the macroeconomic

environment we are currently in, and how much of it is a signal of what demand is going to look like longer term? >> at illumina, we are in a launch year, so expectations are really high for the demand around that, especially because preorders have been so strong. everybody is looking to see, what is that translating to into revenue for this year? as we laid out with this you would look like, we certainly expect tailwind because of the strength of it. we are also looking at the macro environment. we are modeling and, as people get back to work in china, what that means in terms of chinese revenues. we are also going to be scaling up production over the course of the year. it is clear that demand will exceed supply over the first couple of quarters as we manufacture more instruments. by the end of the year, we will be at a position to service demand, but that will be a factor as we build in guidance for the year. kailey: you mentioned to hundred

dollar genome sequencing. it's amazing how much the cost is come down over the years. others have also said they can do it for $200, and that is going to be immediate. given that you haven't faced all that much competition to this point, how are you thinking about the competitive landscape now? >> first of all, it's a big reduction in price over the last two years. one of the things we are focused on is democratizing access to genomics. we have been bringing prices of sequencing down since we launched our first sequencer in 2007. we went from $150,000 to now $200. that is greater than a 99% reduction. but sequencing is only one part of what our product is paired we are the only company in the world that has bit -- that has built an analysis of the data that comes off the sequencer. when that comes off, what you have to do as a customer, dealing with infectious diseases or helping matching patients to cancer treatment's, you have to analyze the data.

we have built and all of that analysis, as well as storage optimization. we can give you up to five times storage compression just on the insta men itself. just a savings associated with the onboarding analysis over a five-year period can pay for the whole intimate on its unpaired where the only company in the world that normally gives you sequencing in the machine, but all the data analysis as well. on the front end, we have optimized the workflow associated with running the sequencer. for example, you don't need dry ice when shipping reagents. that means it is cheaper to run our instrument because we don't have the overhead associated with the supply chain. the total cost of ownership is what we're looking at. that is significantly better than anything else out there. kailey: it is a differentiated product for those reasons you just listed. do you anticipate there will be market share loss as others come into the picture? >> this has always been a

competitive market. genomics will make such a big difference in health care. rank like, since we entered the market in 2007, there has always been competition. we think that is good for the market and we take it seriously. we continue to expect to see more players come into the market as it continues to expand. kailey: on the subject of competition and competitive regulators, you purchase something fine in the u.s., but there is still contention in the eu. if they divest, what will that do to your business? >> well, it is a fantastic product, a blood test they put out on the market, which has been on the market for 18 months. it is a single blood test that can help tell if a person has any one of 50 types of cancer. 45 of those cancers, like pancreatic cancer and ovarian cancer, have no other screens on the market. it is a breakthrough product.

it has been exceptional. it has had the fastest while-month revenue round of any other tests created in history. we have thousands of doctors who have ordered the tests and tens of thousands that have already been done. what we want to do as part of reacquiring this is to make this test more available more broadly in the u.s. and around the world. we are working through the regulatory process in europe to get approval for that. we are still working through that process right now. kailey: if it does not go your way, every thought of what divestiture looks like? can you get the value back if you have to spin it off in today's market environment, which is less than friendly? >> today, we are running parallel tracks. we want to continue to make sure it makes progress in the market, and at the same time, we have a track looking at potential divestiture options. it has made so much progress since we bought it. when we bought the company, it still had not launched a product. since then, it has launched a

product, tens of thousands who have ordered it, and signed up a number of health care providers. over 60 partners now, including health care providers, life insurance, health insurance, and insured employers who are providing the test. they also signed a very large deal with an nhs in the u.k. for 50,000 people to be part of a trial. they have made a huge amount of progress in the time since we acquired them. all of that is value we think will be brought to the market. we have to really test it and see what the reaction is, but it has made so much progress since we bought it. we feel like that is goodness in terms of divestiture. kailey: on the subject of progress, how far away are we from a $100 genome? >> we are making good progress against it. stay tuned. we will keep marching the prices down. we are passionate about improving human health by unlocking the power of the genome. part of that is making genomics available to everyone. we are keen that genomics is not just a tool for the rich or

lucky. should be for everyone around the world and we will keep making progress. kailey: on that note, we will leave it there. thank you so much for joining me, alix: --francis desouza. alix: coming up, jet koreas out with oil. we will have that number next. ♪

>> our current forecast is 90 for q1. we think the reopening gains momentum. because this is a faster than expected reopening, you add five more dollars to that $95 to get you to $100. if we see those international aircraft get back into the sky, if we see people going out of

china and back into china, throw another five dollars, up to $110 by the third quarter. alix: that was jeff curry of goldman sachs. pretty good debt is over at lagardere. part of what jeff was talking about was china reopening, worth as much as five dollars on the oil is. we want to show how much that is not priced in quite yet. this is the double t i spread. -- wti spread. the lower this gets, the looser the market is supposedly going to be. the cheaper the prices are today versus six month out. we are pretty low at this point, picking up, but still getting out of negative territory. if china comes roaring back, if there is a lot more pent-up demand, how does this chart change? fundamentally, we're looking at storage that is pretty light. maybe that is not priced in the

same way as you are looking at oil in the 70's. kriti: it's really fascinating when you're talking about what actually is inflationary versus disinflationary. this is still a very hot topic. jeff curry said that will add five dollars to the oil price. some people are saying this chinese reopening, the fact that it is faster than expected, is actually going to move oil in the opposite direction. it doesn't even take into account what american demand looks like. alix: is that revenge spending going to continue or not? that brings us back to you in la guardia. travel stuff has been so bad over the last six months that people will be afraid to travel and they will go in their cars instead. there is that narrative out there. the visibility for a lot of these airliners is really, really thin. kriti: it's really thin. you are expecting to see this more and more in the earnings reports. we will see if airlines can actually recover post-covid.

alix: it was fun to anchor with you. doing a great job over at lagardere. the health care conference continues. we will be talking to steve krause in the next half-hour. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement,

i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.

mark: welcome to the pnm bloomberg and audiences. i am mark crumpton, with first word news. house republicans are quickly moving on a long promised investigation into president biden's son hunter. they're asking the treasury secretary to produce any suspicious activity reports on hunter biden or any other member of the biden family. bank sees those reports to flag suspiciously large transactions. republicans also want former twitter executives to testify about alleged were pressman of information about the bidens on the social network. much of california is getting a briefer spite from powerful storms that have been pummeling

the state. the system is now headed north of oregon and washington. the quiet won't last for long, though. another system is set to sweep through all of california starting saturday. the severe weather has killed at least 17 people. activists monitoring iran's protests are increasingly covering executions and arrests, rather than street demonstrations. it is a sign of how momentum in unrest has shifted to the state and its crackdown. mentions of protests and street gathering and december fell to the lowest level since this all began. mentions of execution, prison, arrests, court, and sentenced, almost doubled during the same period. buffalo bills damar hamlin is going home. the 24-year-old was released from hospital today, more than one week after he went into cardiac arrest and had to be resuscitated during a game. doctors are calling his progress

" a remarkable recovery." global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. kriti: i am kriti gupta. we have a special edition of the show here, because i am not in studio. i'm reporting right out from la guardia in new york city. we are talking about the outage this morning in the united states that has grounded over 4000 flights. what the ripple effects are. we will dive into that drought the entire show. jon: a morning of turmoil. we will talk more about the develop mensa in the airline industry paired we want to speed

and how things been playing out in the markets. the s&p 500 performance today is up right now about 0.9%. most sector groups have been trending higher. there is a willingness to take risk ahead of that inflation data that we are waiting on for tomorrow. we will talk about individual movers and a second. a smooth 10-year auction. it is around 3.5779. you have heard a growing chorus of bond players, including pimco and jeff gundlach, talking about appeal in the market now. fluctuations of the currency market. a little bit of weakness for the dollar. on the oil side, we are looking at a solid move higher by about 3% as investors continue to look at headlines on china's reopening and the potential appetite for crude coming out of china. let's get to some individual movers today. if you want evidence of the willingness to take on risk, you have seen investors moving into technology stocks. you've also seen the moving into hard-hit meme stocks. whether it is bed, bath &

beyond, or amc entertainment, which is up 16% today. there is uncertainty around the housing market, but some home are inventing to gay -- in bets -- but some home builders are moving higher. as for the airlines themselves, obviously of things i gone differently over the course of the day, perhaps he would have seen more weakness in this sector. but right now, we are seeing green for the notable carriers, such as united airlines, which is up about 4%. kriti: a real turnaround story, i have to say. in the premarket this morning, esau southwest and united in the red. to see that turnaround story suggests may be investors are looking through it. once ask a true expert about whether or not that is a fair assumption to make. but spring and the senior industrial analyst george ferguson. george, you are seeing the

equity market look through the issues of this morning should the rest of us do the same? george: i think so. this is an event outside of the airlines's control. i think they were cover most of these flights in the next couple of days. my guess is multi our delays. it will not cost them a lot of money, but it will cost something. i don't think it is a horrible event. we sort of hit all of them. so, consumers are not necessarily going to shy away from one airline over another just because of an event as large-scale as this. jon: dortch, the fact that we had such a challenging holiday period, obviously a different scenario, but the fact that there has now been this see of uncertainty that travelers have had to deal with, and the airlines as well. how do you think it challenges the way they message and operate over the balance of this year? george: i think first and foremost, this event was all

about safety. the faa shutdown airspace to make sure that flights were as safe as possible. the system essentially alerts pilots to problems in the airspace they are flying through or the airport they are going to. i think this story is a good story from that standpoint. the year is going to have its special share of challenges and problems, i am sure. more outages, more weather events. more of us are returning to the sky. i think we will have to get used to the fact that flying somewhere doesn't always go without a hitch. when it goes safely, it is great. i think it keeps customers coming back. again, i think it will be fine and long run. kriti: george, 30 seconds here. i have to ask, when you're talking about who is most exposed to these potential issues to technology that hasn't been updated or renovated, who is most exposed when it comes to the major domestic airlines and who is the least?

george: the big full-service carriers, like southwest. american, delta, southwest, united. they have the most flights and domestic business. jon: thank you, a helpful breakdown as always. george ferguson. we talked about the fact that stocks are up. stocks, broadly speaking, are up the on airlines. the u.s. inflation data set to release tomorrow. i want to bring in chris murphy, that head of strategy at susquehanna. just looking at the advanced today, it looks fairly broad. how would you describe positioning in the market ahead of that inflation data? chris: i would say i am cautiously optimistic. it does feel like a softer cpi print, if you look at the rally from the last two days. it is somewhat priced in. usually, when the s&p is up like it is right now, you would expect the vix to be down.

the vix is up. there is some caution heading into this number. if it is softer being priced in, maybe it will be a higher expectation to cross! the last couple of cpi's. on the flipside, i want to point out that i have to imagine if we do see a sharp rally on a softer cpi number, it's only a matter of time before someone out of the fed tries to temper this rally a little bit by saying something along the lines of, we have more work to do, or something like that. it seems like the risk-reward in the near term is tilted toward the downside a little bit. jon: if we were to see, to your point, and in line or softer than expected print, that's the kind of thing that might keep some momentum in equities tomorrow. chris: yeah, i would think. it seems like the sentiment is softer than in line. i think in line might not be met with a positive response. a softer rally, but i would be watching out for fed commentary

that follows. jon: in terms of the markets more broadly today, even though you've got a number of sectors in the green, the fact that tech is up, the nasdaq is outperforming, does that surprise you? chris: i don't think so. once the cpi is over, starting to look more toward what is going to happen with earnings. if we are looking at what we are seeing on the dream desk, we are seeing more call buying in, more bullish positioning. i would point out something like amazon. we have seen a couple of big calls. we have a really low cost upside position for the earnings event in february. if you do get decent earnings out of something like amazon, it is down so much that may be you get a decent rally and a good risk-reward. the positioning has been a little more bullish for specific trades. jon: i wonder if some of that

collectivity plays into where the mood was in december. we talked to you then. he talked about a lot of investors hedging for 2023. there was a general idea out there that retesting the lows, or making new lows, might not be that surprising in early 2023. does that factor into the equation as well? chris: 100%. i think that's a great point. if you're expecting that to happen in the first quarter, it once again amazon as an example, you don't have as much stock as you may be did a year ago. we are a little light in amazon, earnings are coming up, so maybe we buy this relatively inexpensive cost spread, just in case we don't have that reset. it seems to be looking toward a dismal earnings season. investors are underinvested. it probably makes sense to put into upside position so you don't miss it. jon: before let you go, the

inflation report, and you are already talking about earnings. there is going to be focus on banks reporting their quarterly results as we get into the end of this week can you talk to us about some of the position you are seeing in the banking sector ahead of earnings? chris: absolutely. a little bit more cautious than usual. a little bit more volatility than usual. the moves are little higher than we expected over the past couple of years part of that is due to cpi. the banks report first and you have this cpi number going. if you are deciding in between sectors and you decide to put on some downside, not only do i get the cpi this week, also get a bunch of bank earnings. maybe investors are looking at it that way and that's why we are seeing more than usual there. jon: helpful as always. great to have you with us. chris murphy, head of derivatives strategy at susquehanna. we are going to go to the conference and speak with steve kraus. this is bloomberg.

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jon: this is bloomberg markets. i am jon erlichman, with kriti gupta. we have been tracking the growth of technology companies, particularly in the health-care side, over the last couple of years. j.p. morgan health care conference taking place. kailey leinz is on site. she is now standing by with steve kraus. as come to has invested in notable names like shopify and bright health. over to you. annmarie: --kailey: thank you. you obviously focused on health care and bio companies in

particular paired you put out a piece back in 2020, "the 10 laws in health care." health care as a whole may be trillions and trillions of dollars in value, but is just a bunch of submarkets that are just a couple billion dollars that it is divided into. steve: health care is the largest market in our economy. but it is literally 400 large, large markets. we are really interested right now in health care service companies. we are in the early innings of the transformation of the care delivery and payment system of health care. partly because this industry has only been digitized for a little over 10 years, which is pretty amazing to think about, given that it is the largest industry in our country. think there is massive opportunity to deliver care virtually, and a better way for patients, with more quality and

cost. kailey: as you find opportunities, how do you value these companies, especially in a time when we have seen pretty rapid devaluation of a lot of technology players, in particular. as you talk about health care moving into a more technological world, how do you assign value to that? steve: i think valuations are recent during themselves, if you will. but what we do is invest in early-stage companies. valuation does matter, but we are also invested in growth. a lot of times, we are not necessarily thinking about where metrics are today, but how big this company could be in five or 10 years. you have to obviously factor in where the company is today. the markets are massive. he really need to think that they have a really differentiated product or service offering, excellent clinical outcomes. that is something we also value in health care, because they matter. outcomes set you free in health

care because they allow you to sell to more payers, consumers, providers. but then you also have to think about how big it could be. when you are operating in a $4 trillion addressable market, there is a lot of room to run. that's how we think about it at the early stage. jon: steve, we referenced your awareness and comfort level with the e-commerce industry as well, which obviously got a huge boost during the pandemic. in terms of where we are going forward, how much of the new investment capital, the new businesses, are really growing out of what we experienced during covid itself? what did that china light on for you? -- what did that shine a light on for you? steve: obviously, the pandemic was a watershed moment for our industry. obviously, we have to acknowledge there was a lot of suffering and loss. in health care, that matters to us. the truth of the matter is, what the pandemic did for virtual care and the deliver of that, rather than within the four

walls of the hospital or office, if wrinkly sent the industry forward in two years possibly two decades. treatment was delivered in person. what we know is that a lot of preventative care and acute care can be done virtually. that really provides a lot more leverage, provides better patient experience. it is shown to provide equivalent outcomes and it is at a lower cost. that is almost the triple aim in health care, to provide great expense, lower cost, and better quality. virtual is enabling the health care system to do that, really bringing to industry forward, equivalent to whether -- to where other modern industries are. we were so far behind, and now the pandemic -- we are not there yet, compared to shopify, but we have come a long way and we still have a long way to go. i am optimistic about the virtual care market. kailey: there was also a

recession, pandemic recovery, and now another recession again. how resistant are these portfolios? how are you devising people to navigate it, in terms of covering cost, making investments in growth? how should they be doing that in an environment like this one? steve: i think health care has proved to be recession-resistant. we will see what this market is like. it is always a different market every time. but 50% of health care reimbursement payments are from medicare and medicaid. those are government-sponsored programs. those are probably going to increase in a recession. 50% of company revenues are either going to be held stable or increase. clearly, medicaid increases in a time like this because, unfortunately, people lose their jobs. that basic social service level as needed. i'm her companies, i'm not telling them to pull all spending back. there is tremendous opportunity, as we talked about.

obviously, they are being prudent. health care, frankly, because of the health care we provide at times like these, it is recession-resistant compared to other industries we operate in. jon: you are talking about companies that might be in early innings for traditional health care companies, who are clearly going to be thinking about growth themselves over the next few years. are you already getting expressions of interest from the traditional players, whether it is in acquisitions or partnerships? steve: it's a great question. i've said this for a long time. if you're sitting in the boardroom of a big tech company, you will see some big consumer retail companies. i think it is an economic imperative that you are thinking about getting into health care. it is 20% of the gdp and growing fast. i don't know how i company like amazon or microsoft, or even best buy -- they have transformed their business to be a retail business to have a lot of remote technologies in health care that they are selling. amazon made a huge acquisition,

one medical, and it is making a big play in health care. we are seeing traditional tech companies, incumbents like walmart and best buy, obviously cvs is making a big play in health care. i think you're going to see more and more companies realize this opportunity, the massive size of it, and it will continue to grow. it is recession-resistant. frankly, because a lot of companies are now tech-forward in health care and growth oriented companies. kailey: finally, just on regulation, how does that affect health care startups in particular? steve: it's huge. i tell my teams and entrepreneurs to read through every piece of regulation. in a 1000 word document or bill that comes to pass, there will be many, many nuggets of one billion-dollar market opportunities. regulation is huge because medicare and medicaid are 50% of payers. they often drive a lot of the innovation.

a lot of the innovation we have seen actually came out of two formative laws that happened 10 years ago. one was a law called the "high-tech act" that mandated hospitals and providers adopt electronic medical records. the other was obamacare, which has really advanced value-based care models, which is huge. it changes the way they behave, not incentivizing visits to the hospital. i think that will transform us for the next 30 years to 50 years. kailey: steve kraus, thank you so much for joining us. jon: we are going to take a quick break. when we come back, finding the money. advisors to ftx with an update on where they might be able to find some cash to repay ftx creditors. we will dig in deeper, next. this is bloomberg. ♪

jon: this is bloomberg markets. i am jon erlichman, with kriti gupta. time now for today's "for what it's worth." our number today is $5 billion. the failed crypto operator ftx has to potentially sell assets to repay creditors, sharing that number with the judge overseeing the bankruptcy. it is still unclear at this point how many creditors will be repaid when you consider there are more than 9 million customer accounts associated with ftx. we're going have to to watch the development as well. another key issue in court is going to be, at some point, do you learn the names of the various ftx customers? that is also a sensitivity issue, which we are going to watch very closely. either way, on the market for them, can't ignore the fact that we have an equity rally on this wednesday, ahead of the inflation data tomorrow. we have seen the s&p rallying to the tune of 0.8 percent.

technology stocks getting attention from investors once again. right now, looking at the oil store. also positive, up 3%. this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service.

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>> here comes the retest. the 200 moving play on the s&p 500 3949. kickoff to the close. romaine bostick care. for some reason, we continue to see stocks did higher. >> we are waiting and holding our breath to see if we are headed for a buy situation tomorrow. romaine: still right around the highs of the day in the major indices here. i think