- we could do so many exciting activities. - you're right. this should be a girls' trip. - where are you going? sign up for free at going.com. >> welcome. this is bloomberg markets. >> let's get a quick check on the markets with breaking news that is crossing the terminal. we were talking about philip jefferson signaling that the fed is likely deposit in june, saying that the pause will give them time to assess the data. if they pause or skip, that does not mean that rates right now

are necessarily at. the s&p 500 is down. it was that all of the gains that we had in may on the month. a little earlier, larry said he thinks that the fed will hike two more times. take a look at the 10 year yield . the bloomberg dollar index is a little bit stronger. oil down $.90. jon: helpful context there. the key is joining us. to matt's point, perhaps not suggesting that rate hike would be done if we did not see action in june, but almost pushing back on some of the expectations in the market right now.

it is interesting because there was thought that he might be delivering a message today because he is the vice chair -- not confirmed yet, but he will be the number two. so, if the fed wanted to send a message to people, this would be the time to do it. perhaps their last chance. we have seen the market -- we have seen pushback today. we have a very strong report. the market is leaning towards a fed rate rise. you can understand perhaps why jefferson has been sent out or has decided to make that point. let's point -- let's put up the quote from earlier. it should not be interpreted to

mean that we have reached the peak rate for this cycle. skipping a rate hike would allow the committee to see more data before making decisions about the extent of additional policy firming. we are going to get a lot before we get to the next meeting, including a jobs report. i suppose he could change his mind again, but we will not hear from him, if he does. matt: we do have that meeting coming up. meanwhile, j.p. morgan ceo jamie dimon says a political career has crossed his mind. he spoke to stephen during his first trip to shanghai since the pandemic. >> i love my country. i love what i do.

a great job for helping americans around the world. this is my job. tom: ross perot lee also entered the election at one point. he has been kind enough to join us. thank you for being with us. i will start with how the economy so i ties together with some of the washington uncertainty. you have been watching the deadlines. how have you been reacting to all of that? >> you have to be patient. i have great confidence in the nation's heaters coming together to get the debt ceiling done. the next big challenge will be the budget. it has a huge impact on the underlying economy.

matt: matt miller in new york. i thought, when i read about the jamie dimon story this morning, i thought of your dad first because when he ran, i was just of voting age. it touched me deeply to have this will be exciting thing happening in american politics, someone entering from neither of the two parties, someone from a business background with a lot of real-world experience. what do you think of the idea of a banker like jamie dimon possibly throwing his hat, possibly entering the presidential race? >> i have known him for a long time and he is a great man and a great patriot. if he entered politics, it would be good for our country. but i also like him running j.p. morgan.

he has a few good options. he can serve the country through j.p. morgan or running for president. he is doing great at j.p. morgan and he would make a great president. matt: we have been talking with a few people and they have been discussing real estate in texas. >> the one thing that i see from a macro perspective is that everyone thinks that commercial real estate is in the tank. it is really focusing on the market. when you look at the data center market, it is white-hot. they do not even get them developed. matt: i thought that was interesting. data centers are white-hot right

now. what do you think of those two areas in your industry? ? industrial developers. we develop big logistics parks around the world. those areas are still strong. the product depending on the city you are in will depend on the value of the office building. north texas is not bad because so many people are moving in. we need great base available and we are progrowth, heavy growth. we are going to need the office and the market will not be bad compared to others. tom: you have played -- jon: you have played a key role in bringing some of the financial firm to the dallas area and beyond the narrative that was talking about with commercial real estate, we are hearing about bank jitters right

now. many key players are in some of those facilities that you help to build and are still building. wesley brought a lot of great companies to fort worth. we just moved out of illinois to dallas fort worth and we are working with oldman. we are in the middle of this flow and it only increasing. we are seeing more and more clients inquiring because of the issues going on in the u.s. the key to commercial real estate will be banking. if the industry cannot get a loan, there will be a recession. it is harder and harder to have a construction loan. that will cause a slowdown and a recession. jon: what is happening on the

residential side? that has been another area where you have been a big builder over the years. how would you describe what is going on with that part of the real estate market? >> i am very pleased and it is surprisingly strong. it is this inflow that has kept the residential market very strong. 80,000 people a year moving from california to texas. that kind of flow is very popular and a lot of homes being sold in north texas are being purchased for cash without a mortgage. this market is surprisingly strong. you will see a lot more in the next 12 to 18 months. >> there was a time when equities in dallas was a

punishment like going to siberia, but as you point out, a lot of new yorkers i heading down to places like north texas. do you see people relocating from california, where a vacant office space is becoming a problem? why did they tell you they are doing it? west mayor seeing a lot of people. they are feeding the market right now. originally, they came for economic reasons but we are seeing people coming for cultural reasons. it is a very easy place to create -- place to live. many people i talked to i coming because they want to raise their children in the market. they like the schools and this friendly environment that we have.

>> is there any concern about restriction on their right? there is also the issue of gun control. there is very little of that in texas and as a result, we see serious gun violence there. is that not a problem? >> none of our clients ever bring it up. you get out on the front lines and talk to the customers, our cities are very safe in the suburbs are extremely safe. they love the safety and affordability. we have wonderful police departments in north texas. people move here because they like the safe neighborhood, the great schools and easy quality of life. tom: in the state of -- jon: the state of texas, it is a market that you know well.

we have seen a lot of weakness in oil prices recently because of other factors out there. what are you seeing in the industry? give us some of the negative and does -- given some of the sentiment we have seen. >> i am very pro-oil. we need to drill more oil in the u.s. to keep as energy independent as we can. we have had a pretty good boom, but we are running out of labor and rigs. it is putting a dampener on our growth. the price has come down a little bit, but you can make a lot of money with $70 oil. if you go out a few years from now, we will probably be in the 80's and 90's.

oil is a great part of the texas economy. jon: is there a message he would send to with that concept? >> it has to be all of the above. we have a great solar program, nuclear power program. you have to do it all and keep the grid reliable and safe. we should never tolerate blackouts that are starting to hit the country. if you have a blackout in your city or state it is because you have bad public policy. we are trying to put more reliable power into our grid so we do not have those blackouts again. we have to be very careful with the grid because they will not be enough power on the grid. data centers take a huge amount

of power. the biggest threat to data centers is power reliability. matt: it has been a big concern nationwide. i'm sure you are doing just fine, but do you see your colleagues having trouble refinancing or banks backing away from giving credit? >> 100%. we could get a loan but we are helping other developers finance their projects. we bring equity into the table so developers can get their projects off the ground. they would not come to us, if they could go to a bank. that is why we will have a real estate recession, if the banks do not start lending again. matt: thank you for coming to

our program. speaking to us from dallas, texas. he heard philip jefferson signaled that the fed is inclined to hike. we will get a look at the markets take, next. this is bloomberg. ♪

oh booking.com, ♪ i'm going to somewhere, anywhere. ♪ ♪ a beach house, a treehouse, ♪ ♪ honestly i don't care ♪ find the perfect vacation rental for you booking.com, booking. yeah.

( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. jon: this is bloomberg markets. time for our stock of the hour. they are looking at three stocks. all employees to benefit from the ai evolution. they will eventually we have

seen value of invidious. this month, but making the case that software names for every dollar worth of hardware that is generated will generate plenty of revenue themselves. >> she said something to the effect of, for every dollar that hardware gets, software will get eight dollars. very interesting and i'm sure people will be looking more deeply into those companies. in terms of the fixed income side, vrc yields slide after a signal of a pause in hikes in june. the portfolio manager, thank you for coming to the studio. a lot more talk about rate hikes. a pause now so they can assess

the data, but that does not necessarily -- we heard from blackrock that he expects two more hikes this year. >> thank you for having me on. i can call the general consensus , that we have not seen the end of this yet. if you think about what we know about the fed, the area where chairman powell has been the most competent is seeing that he has a 2% target. in light of today's report, it is hard to imagine how we get there without something changing. maybe that comes out in the data. but given what we know, i'm not expecting an all clear whistle yet. we think this could end up being -- even if we have rates that

are higher, with the market does not want to see is the fed doing something prematurely. jon: the logic was that it would hurt growth, but we were talking about the fact that growth has had a big run this year. question are saying -- matt: how are you thinking about growth right now with rates on the rise? >> they are going to survey the cost of capital. we are excited about a world where many cost something. we have had a massive distortion in the price capital because of quantitative easing. investment companies that have a strong proposition, a good

market position, those companies on the right side, who just get crashed. more broadly, the rally that we have had this year, people have been expressing constant surprise that it has happened. a lot of the -- it has been the year of investing. we think that trend will continue. matt: how has the debt ceiling debate changed your strategy? do you expect us to get an agreement and go forward? >> they have been pricing and that there will be volatile headlines. but this will be resolved. near-term, am sure it will talk

about which sectors are favored or not favored, but the longer-term impact, hopefully it does not come to this, but we live in a market where u.s. treasuries are risk-free. the more times we go through these episodes, the more it comes under scrutiny. jon: thank you for your time. up next, advanced auto shares under tremendous pressure today. this is bloomberg. ♪

[announcer] if you're thinking about earning your degree online, snhu can help you get there. - i felt supported throughout the whole process, even from the first call. [graduate] my advisors consistently reached out and guided me along the way. - it was like i was talking to a friend, like someone that i had known for years. - the instructors were very helpful with everything that i was going through. [announcer] we'll be with you from day one to graduation to your dream job. ♪ it all starts the moment you find your program. [announcer] go to snhu.edu to get started.

jon: this is bloomberg markets. time for today's what it is worth. auto parts cut its dividend

after earnings missed. the company's had to lower prices to stay competitive. they expect to continue resulting in a shortfall of expectations. one analyst saying whatever could go wrong did go wrong. a lot of people have been leaning into one that can navigate the economy. matt: a company in the sector is not necessarily representative of the sector, even advance auto parts because it is true that they missed on every metric and that is why the stock is seeing such a big selloff, but we continue to talk to investors. we were talking to blackrock about how the sector is poised to benefit and is undervalued. jon: you have other players out there like the autozone of the

world. speaking of markets, we are seeing some softness as revamp of trading in the month of may. we will be watching markets through the rest of the trading day. this is bloomberg. ♪ ahhh these days,

our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today.

♪ >> the s&p a strong -- kicking off to the close for the final trading day of the month of may. down about half a percent on the day. a key point of resistance getting a little bit of a failing grade. the nasdaq also down on the day. the monster gains that we have seen over the past couple of weeks.

the risk on