>> i am madison mills with first word news. bloomberg has learned the secretary of state may meet with his chinese counterpart at a security conference in munich later this week. he canceled the previous trip to beijing set for last week after the u.s. identified an alleged chinese spy balloon hovering over u.s. airspace. since then, more identified objects were detected over north america, with three of them shot down in recent days. and international monetary fund mission starts talks today with ukrainian officials. fund explores a multiyear

package worth as much as $16 billion, the funding will help cover the country's costs and could provide a catalyst for more international funding. on friday, russia launched the biggest barrage of missile attacks so far this year as president zelenskyy seeks more weapons to fend off the invasion. bloomberg has learned qatari investors are making an offer for manchester united in coming days. officials at the sovereign qatar investment authority are preparing for the bid. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am madison mills, this is bloomberg. jon: welcome to bloomberg

markets. kriti: let us talk about the price action, green on the screen. the s&p 500 is higher at one point 1% on the day, take a look as the nasdaq -- at the nasdaq. it is driven by tech, pushing indexes higher. this is the rally we have seen since the start of the year. it is nice to have tech on your side. let us take a look at the bond market, 10 year yield at 371, lower by one basis point. a wait and hold position for cpi data tomorrow. keep in mind, lack of volatility in the bond market, what relationship does it have two major tech movers? we will get to that. take a look at the dollar index, the bond market does not do much, the dollar does not either. the cpi report seems to be the game changer, for now down by 1/10 of 1% area crude is inching closer and closer, perhaps with

the same momentum the stock market is seeing. 80 handle up 9/10 of 1%. jon: you mention some of the tech movers, let us highlight individual ones. it has been a challenging time for that sector, we heard about a lot of restructurings we had upwards of 17% of its workforce impacted, the stock is up about 3.5%, same as microsoft. best performer within the dow, analysts are feeling better about the prospects for that company which is spending big on ai. all the ai excitement so far this year has been a momentum story for a number of stocks. it is up about 50% this year, moving lower in the fintech area fidelity national. a number of moving parts within the company, and includes a

massive write-down. kriti: it really does all come down to the cpi data tomorrow. are now, an exciting segment. formula one unveiling's are heading into overdrive and we are moments away from seeing aston martin's new f1 sports car. it is growing more popular across the globe and right here in north america. we are joined by the executive chairman and owner of aston martin's f1 team and matt miller. they have a new car, a new driver and a new factory. lawrence, walk us through the changes you have made from last year's car. lawrence: last year's car to this year's car is 95% brand-new, less than 5% carryover parts. for all intellectual purposes, it is a brand-new car.

looks different, we believe it will behave differently. a major step forward from last year's car. we took a big step for the second half of last year, the plan is to continue on that momentum to fight for the top. we will unveil the car tonight and the new state-of-the-art facility, she will ba.4 hundred 50,000 square-foot facility -- ba-- be a 450,000 square-foot facility. we are moving in and the next couple months. double door headcount of people, a great group of 400 people when i took over the company that were known for punching above their weight. we have doubled headcount today, which brings us to the limit of what formula one budget caps are. an exciting moment, we believe we are taking a big step forward with the car. big initiative showing intentions with the new factory and intentions hiring fernando. an exciting moment and it happens to be the 110th year

anniversary today. launching the formula one car, we also have many new lodges coming this year -- launches coming this year of new generation sports cars. matt: it is incredibly exciting, bringing in a legend like fernando. your new facility, i am on the website waiting to see the car. the images cannot be released for another 30 minutes, what do you expect from fernando? the name alonzo puts goosebumps on a lot of people's arms. is he going to have a shot at winning the whole thing? lawrence: i know fernando for about 12 or 15 years, i've never actually seen him as motivated as he is today. his excitement and enthusiasm has filtered through the whole

factory and brought a new level of motivation. as far as winning is concerned, this is the third year as aston martin formula one, winning in formula one is a journey. to realistically, consistently be fighting for wins, we need a few more years to do that. we have a five-year plan, i am still hoping that plan will come to fruition. i do truly believe we will take a big step up the grid this year , regularly be fighting for podiums and wins. it is not realistic after this year -- three years to just expect. jon: you talk about the new facility, can you talk to us about how that specifically plays into the momentum story? obviously, a massive facility that you think is really going to give you the edge.

lawrence: yes. part of the massive facility, we are building the newest state-of-the-art wind tunnel. the last wind tunnel to be builds in formula one was 2004. you can appreciate how technology has moved on from 2004 until today, so we believe there is a significant advantage to the two bits that make a formula one car go are the power unit and next most important or equally, sometimes more important is aerodynamics. they are developed through cfd and wind tunnel. having the latest and greatest state-of-the-art wind tunnel should help us considerably in our quest to move forward. matt: i wonder about the underlying business. f1 is incredibly exciting to watch your progression, your team grow. you are building a huge fan base. as you mention, the carmaker has

a 110 year history, we grew up with aston martins in james bond. it is a visceral experience. now you have the suv everybody wants to get a piece of. is the business, which has been shaky, able to stand on its own two feet and run? lawrence: i assume you are referring to the road car company, if you are the underlying fundamentals are extremely strong. i took it over three years ago as executive chairman, i believe in the business so much that most recently, my consortium bought another 10% of the company to take shareholding up to just below 30, which is the maximum you could own before taking the company private. as you rightfully say, the dbx has been a phenomenal success. that was the first box we had to

check on our journey to 10,000 cars. 10,000 cars, we are tremendously profitable and tremendously cash flow positive. the next big step is happening this year, i've been working on it for the last three years. the introduction of all the next generation sports cars. we will have eight new sports cars launched in the next 18 months. these are the two big steps that had to have been to get us to 10,000 cars, very positive cash flow and extremely profitable. i said three years ago that was michael to get there by 24 and 25, i am on target to do that. the order books have never been stronger, we are sold out in some categories for six to nine months, the residual values have never been higher. the business has never been healthier. jon: before we let you go, thinking long-term as all automakers are. the story of electrification,

can you remind her audience about your goals on that front -- our audience about your goals on that front? lawrence: as i mentioned several times, we will have the first full electric vehicle early in 2026. it will be very aston martin and very different than other electric vehicles, similar to the way the dbx suv category. we made a significant change to how suvs were dealt with, we are doing the same in electric vehicles and look forward to sharing it with you at the beginning of 26. kriti: our thanks to the executive chairman and owner of aston martin's f1 teen and matt miller. coming up, we dive into the market for private capital, we are joined by marc lipschultz with blue owl capital, just out with fourth-quarter results. this is bloomberg. ♪

kriti: this is bloomberg markets. the asset manager of blue owl capital reported fourth-quarter earnings, it is our stock of the hour. >> i want to take a look at blue owl, we will talk to an executive in just a second. this is a stock that has risen more than 20% on the year, outpaced the s&p by more than double. today, it is roughly flat after reporting earnings in line with targets for the year. when you look at what analysts are saying, they believe earnings and revenue will start to increase throughout the year.

i want to take a look at this stock not only on the day, but in relation to all of its rivals. if you look at blue owl, ares, these are two younger firms. it is just about in line with apollo, which is more credit heavy. if you look at it versus blackstone, they are outpacing the traditional private equity managers. for more insight on why private credit is outperforming, we are bringing in marc lipschultz, cofounder and copresident of blue owl capital. when we talk about what is going on in the industry, there is a lot of concerns that private credit has held up broadly, you can see cracks in the market. where do they start to show up? marc: thank you for having me, a privilege to be here with you in particular. we today have a business that

has been built on stability, protect ability and growth. the very question of where to cracks show up, might the cracks show up, how deep are the fishers is exactly what differentiates the blue owl business model. we are a fee-based earning business very predictable, stable growth. we do not have the performance dependency, which is why we delivered exactly what we talked about last spring. that makes is a unique animal, relative to others. we did exactly what we said, which is what we should do with a model that it's built for those kind of cracks and fissu res. sonali: what do you have to avoid to keep things sustainable, avoiding a lot of the issues in the markets? we are facing potential bankruptcies, what is going to hit the industry that you have to avoid? marc: by having products that we focus on and our real estate

business, gp solutions and direct lending, all the products have a common core. principal preservation and protection, stability during times of uncertainty with strong yields. direct lending the large business, we benefit from rising rates. we lend money to companies, so is rates have risen and point of fact returns to investors have gone up. during the course of 2022, we call investors and say we want to let you know something, results are better than you thought. that is a good place to be. kriti: why don't you factor in things like public markets really opening up this year and away they have not in 2022? doesn't it make sense for credit investors to hop into the public markets? marc: the bottom line is direct lending over a long arc of time, we see it this year, meaning the

outperforms. it is not a monolith, credit is not a monolith. what we focus on his credit, credit quality. that is lending to the biggest and best companies. if you look over 2022 and where private lenders have been, the largest take privates, realize half of those were funded by private credit. we were one of the leads in almost every one of those investments, these are high-quality companies. the result is you look over the 73 billion dollars in loans, the loss rate per year has been five basis points. including games we have, the gain of three basis points. that is dramatically better than what is available in the public market. safety, security and we pay a much higher yield than you can earn in the public market. i think that combination is why

we are growing and the asset classes growing. jon: those are helpful numbers, you talked about that on your conference call. take a step deeper into finding those companies that are really good investment bets or lending bets. what goes into the math for you for those trying to figure out what goes into the kind of practices you have established? marc: that is a wonderful question, it is the heart and soul of what we do. it is by having the best people and a large team invested in going out and originating opportunities, doing deep underwriting and tight credit agreements. it is the case that we charge more, credit agreements are tighter and diligence is deeper. we offer value to the user of the capital, including being available like times in 2022, during the pandemic.

we have become the stabilizing force in the market, public markets come and go. blue owl have become this stable, protectable part. it is about looking at thousands and thousands of loans to make the few that we do, making sure those are high-quality and being a true partner to borrowers. sonali: you mentioned you are more expensive. what does this look like today? there is a since the banks have been constrained, is that still true? where does that put you in the equation? marc: the bank models have changed over a long period of time, moving from a lending business to the syndication business. we do not see the banks as competitors, and the classic sense. they are not looking to make loans to the companies that we are. they are looking to intermediate transactions.

they have loans they made and still have to solve. it is a very different decision, can they sell the loan to someone at a price they decided some number of months ahead of time? will this company be a great company 3, 4, 5 years from now? a foundational he different question. it is a big market, trillions of dollars in credit. plenty of room for banks and private lenders. think about the fourth quarter. almost all activity was private lending driven. i'm sure the banks will come back, i hope they do. jon: before we let you go, you alluded to the fee structure. as a public company, maybe you can reiterate how the business is evolving and what you see things looking like going forward. marc: we have the benefit of having predictable, stable fees.

our business is all about fee revenues and it is based on driving 94% of fee revenues from permanent capital. we have a truly differentiated model in terms of productive ability and growth, so fees are stable. we focus on high value added products. we want to deliver outstanding results in real estate, triple net lease, protectable, stable, attractive real estate strategy. really financing the whole alternatives industry and direct lending, taking all of those together, we deliver a high value added experience for investors and an attractive fee and high-growth experience for shareholders. jon: really helpful context, our thanks to sonali basak for breaking it down.

when we come back, b-2 comes the latest gold miner to strike a deal. this is bloomberg. ♪

jon: this is bloomberg markets. time for today's for what it's worth, the number is $1.1 billion canadian, b-2 gold acquiring sabina gold, this is the latest deal. we have seen big moves in the past. they are fitting to buy new crest, it has been a busy time. kriti: i wonder how much of that consolidation really speaks to the supply entering the market at a time when you were looking at decreased demand while asian country gold prices, 1855.

let us go broad, s&p 500 is still rallying, green on the screen up 1.2% on the day. nasdaq outperforming, higher by 1.6%. more markets coverage ahead, this is bloomberg. ♪ about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh introducing j.p. morgan personal advisors. -hey david connect with an advisor to create your personalized plan. -let's find the right investments for your goals okay, great. j.p. morgan wealth management.

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romaine: and here we are, happy monday. we're going to kick you off to the closing bell, an afternoon. scarlet: afternoon. romaine: thank you. i'm romaine bostick and we are looking ahead to a tuesday report, rally and hard to the end of the day. scarlet: it is bad when it comes to the bonds. a different story for the long end of the curve, everything hinges o