>> welcome to "bloomberg markets." you are looking at a green day in the stock market, the fourth day of gains in the s&p 500 and comes on the back of another day of yields down looking at the s&p at 45,000, above the level. when you look at the number here, we are below where we ended last month. still down on the month. looking at the nasdaq 100, even bigger again. a lot of this is on the back of softer economic data, another day ahead of a vix job day ending the week. when you look at the two year

yield, you are looking at a four point 86, that is 19 basis points below where we ended friday. massive volatility in the bond market, a real bid in bonds. crude up for another day, still looking at 8081 handle on crude oil. however, that is still a fourth day of rises in crude as well. we have been talking about the economic data, a number of indicators the u.s. economy is moderating. here is what jp morgan's kelsey berro thinks this data needs for the fed. >> when we look at that trajectory of the data, totality of the data, first inflation, then labor market, than the gdp data. we think they will be getting confirmation policy is sufficiently restrictive. sonali: bloomberg economics chief u.s. economist and along joins us from d.c.. with this data -- anna wong joins us from d.c. with this data of pc and jobs, how do you take stock of what we are already seeing?

anna: i think the tricky thing for the fed is the next couple months to decipher the signal from the noise. is going to be a lot of noisy data that suggest inflation is bursting and gdp is going on a game buster but i think the tricky thing is the fed should look through those signs. tomorrow, we are going to get a pce report that probably shows powell's preferred inflation metric, the super core, would be accelerating from the previous month, and that is due to this esoteric category that is related to finance and -- but outside of that, the picture is looking better in terms of inflation. i think the trick is, will the fed look through those noises? sonali: another piece of noise is the idea the jolts data shows softening, typically an indicator of wages moving forward. we get the real wage data later this week. what are you expecting? anna: we are expecting average

hourly earnings from the report to show a pretty soft monthly print and that will be paired with the income growth also showing a softening. when you look at this picture, where you have softening wages and income growth, but on the other hand spending is very robust. that makes you wonder whether this consumption boom is sustainable into q4 and our answer is it is not. consumers are going to retrench in the fourth quarter. sonali: how much is this data -- does this data matter when you look at the rate hikes ahead, looking at the market expectations, and this massive leg down in yields shows the market is expecting significant cooling here. are they right to expect that? anna: yeah, we definitely think they are right because the data has been moving toward what my team has been forecasting. we have been saying there would be a significant weakening in

growth in the fourth quarter. we are expecting the recession to unfold then. we have been saying the labor market is cooler than what these data have been suggesting in real time and certainly the downward revisions to the jolts data which you mentioned is supporting our thesis. sonali: anna wong, thank you for your time. wall street investors are watching policy moves in china and here is what seth carpenter of morgan stanley is watching. >> every corner of the world has its own quirky story. i think we, for us in the u.s., there is definitely the slow down, soft landing, but the data surprising to the upside in stark contrast on the other side of the world. i'm always in conversation with my team in asia. china, we had come into this year bullish on china. first quarter was strong and now things have slowed down a great deal so the question is when do we get enough of a policy response from beijing to pull

things back? >> our next guest is the managing partner and undersecretary of commerce under the obama administration. it has been a landmark week when you have the commerce secretary visiting china, but when you look at headlines, it is kind of a lot of what we have already expected, what has already been telegraphed. how sensitive is the relationship now between the u.s. and china, particularly on the heels of a flurry of moves from the chinese government to prop up their own economy? >> look, i think both sides are keenly aware of how important the relationship is and are very focused on maintaining it. as you rightly point out, the commerce secretary, undersecretary has not been to china for five or six years so they are resuming what had taken place in the past. and i think that is important and productive for both sides. sonali: when you think about not just the commerce secretary's

own trip to china, you also think about the trip to president xi will be making to moscow as well. how sensitive is the relationship between china and russia and the u.s. and china and the u.s. and russia at this point in time? it is quite the love triangle if you take a look. stefan: it is, though the commercial and economic relationship between the united states and china has promised. there is obviously geopolitical and diplomatic relationship between china and russia that is increasingly important. our economic relationship with china has never been important but china and the u.s. are the two important -- to biggest in the world and our ability to cooperate is essential. sonali: you also have close ties to corporate america and advise many ceos on how to work around this weather supply chains are also so heavily tied to china at this point. geopolitical tensions are on the mind of many ceos these days. how do you answer to their

concerns around how the u.s. is navigating relationships with china? stefan: i think the most important thing is we are reestablishing a dialogue and ability to communicate with china which has not existed particularly effectively the last couple years. when ceos of companies -- and companies are quite good at navigating different environments, even stressful environments, what people are not particularly good at is highly volatile environments where predictability is uncertain. i think now, starting these two dialogues, the secretary announced there were two separate tracks of dialogues that will recommence one is a commercial dialogue were business leaders from both sides are going to be a part of it and the other will be an export restriction dialogue that will be quite separate, that will help the chinese better understand what we're doing around export controls because those two things have become a bit muddled. they are thinking all these

restrictions we are putting in place are frankly too suppress -- to suppress the rise in develop it as opposed to protect our own national secured interest. sonali: there are many investors exposed to chinese equities through adrs, there are a lot of private equity view china as a massive growth area, despite the current slowdown. there is a lot of venture capital that has made a lot of money investing in chinese technology companies over the years and wants to re-harvest that money. into more future chinese companies. when you look at the biden administration's moves, how did they impact u.s. investors the most at this point? stefan: china is an extraordinarily important customer for the united states companies which is why we have tolerated their behavior for so long. i always said they have one point 4 billion reasons why we tolerated some of their theft of intellectual property amongst other things. we can both be competitors and they can be customers. i think that is the narrow world we are trying to navigate.

as it relates to private equity and venture capital investments in china as you know, the biden administration issued an executive order limiting investments in certain key technology sectors. i'm not sure i follow that bouncing ball particularly well given the surplus of capital in china but i think really this is just another example of the tensions both sides are trying to ease to be able to work more effectively. sonali: when you look at the data out of china, what concerns you the most? there has been this conversation we have been having about whether the market wants to see a bazooka of stimulus or whether they need to see the economic data turning around. how do you feel about it? stefan: i'm not sure there's any data that does not give me concern. you tick it off. there economy is slowing, it has been growing at double digit levels for decades, it will be roughly four point -- 4% or 4.5% which is double hours but slower. foreign investment in china is

shrinking, consumer confidence is going down as consumers are looking to save more and spend the last. there is a real estate crisis in the making. there is a whole host of things that china's leaders are concerned about, which frankly they have not had to face over the course of the last couple years, and what i would say is as ge has reasserted control over the economy, that is -- has exacerbated issues. sonali: do these issues make the relationship between the u.s. and china more or less tense? stefan: it makes it more important to navigate because this extreme competition we have with china also demands intense diplomacy. that is friendly what secretary were mondo is over there to reengage with. sonali: when you look at what is happening in china with economic data, how much worse do things get before they get better? stefan: that is the trillion dollar question.

you think, given the overdevelopment in real estate there will be real continued stress. youth unemployment is rising. there is a kind of deal that china has -- the chinese population made with the chinese communist party, which is we will let you control the government, obviously in a heavy-handed way compared to the way we think about it in the west, but the quid pro quo is you will continue to create prosperity in china and this is the first time in a long time where confidence is down and chinese -- the chinese population is worried about continued wealth creation in the country. sonali: stefan selig, breach park advisors managing partners -- bridgepark advisors, thank you very much. coming up we talk with -- this is bloomberg. ♪

sonali: this is bloomberg markets and i'm sonali basak read we are spiking to see a busy september in the junk bond and leverage bond markets with at least $15 billion in committed debt that come to market after labor day. tko capital co-founder joins me now, his colleague recently told bloomberg he expects more bankruptcies and defaults ahead. with that backdrop, this idea some things can get worse, realistically, how much optimism can investors meet these junk deals with? >> as the market reopens, it is good news and we see what happens after labor day. we will need some time.

what i refocus on is there is this a also liquidity and what is the cost of liquidity? what has happened the last 12 months if you look at the u.s. or arena in europe, it has widened by 300 basis points or more. that is the cost of liquidity to get the seat at the table so you saw 3.8 in europe, five something in the u.s.. then you had credit spreads, they have doubled more or less with the past 18 months. today, a borrower is starting with cost of that which is more or less high single and low teens cost of debt. we come from zero, not much more than zero. i think what we should be focusing on is the supply, there is a cost of liquidity, and how much supply can we absorb by this market, but more importantly, what do borrowers do with that. sonali: you also see this global

diversion, that the ecb could be moving at a different pace than federal reserve. what does that mean for an investor globally? mathieu: the ecb has been liking to a certain extent, the fed has been quicker to react the past few quarters but by the same token, the leverage market you are talking about starts from a different standpoint in the u.s. and europe erie if you tick the private credit markets for example, you have public data that is average of the private market leverage in the u.s. at 6.5 times. in europe, is more like i .5. managers like us are more 4.5 so it is how do you enter the cycle, how do you enter this cycle in terms of liability, in terms of debt, and today when the ecb is catching up and they have to come a look at the most recent data that came from germany and production of salaries, they have to catch up somehow. so they are suddenly operating in isolation today but from an investment standpoint, it is a

great market to be in to navigate both sides of the pump. as the market reopens and you have these massive beats from investors to compound, now when you can factor -- effectively land at that 10%, that is what people want, give me 10% for the next 10 years. people have been talking about the golden age of the credit private market, it will be an interesting time to get in. sonali: let's talk about that age because if you are a liquid market investor, you look at the private markets and last -- let's use volatility laundering, the frustration that maybe you don't see the pain under the surface. you are actually seeing some pain under the surface. you see private equity bankruptcies at a 13 year high, see defaults in some private credit deals as well. how much pain do you expect in a market that is just clamoring for fresh money? mathieu: if i want to answer simply your question i would say more. i think that is what is ahead of us. i've been saying for a while now that some buyout funds or denial

in terms of the underlying equity value, today you have highly levered assets that have to refinance one way or another as we said erie the cost of debt is twice if not more than what it used to be read to the extent you can raise these debt capacities, so there will be some needs to effectively -- you're talking about the pipeline next week but there's a lot of extent coming and remember what happened last cycle, 10 years ago. you saw to extent and then the extend and pretend and then effectively you might get into the moment for the market. so it is better to anticipate that. sonali: what about this idea here? you have seen record-breaking for credit deals above $5 million and the amazing thing is one of the underwriters, there copresident said they could go from $5 billion to $10 billion in a couple years. how much risk is this market willing to take on and is it going to take away the capacity from the banks that are so

excited about frankly a measly $15 billion in september? mathieu: i think it is great news because these markets are getting institutionalized and all of these asset managers can effectively step forward when the banks of the public market are not open is a great news for the capital market functioning correctly. on the last transaction, and we are involved in direct lending, we focused on the midmarket. i have always questioned whether you have to compromise as a manager to be more competitive in the public market and they are open and rule number one of credit investing is diversification. so if you are at 5% of your fund in any single credit, it means if you are underwriting $10 billion you need to hundred billion fund. i know with all of the success of this, all the things you're talking about, we are there yet. i don't think big is better. sonali: mathieu chabran, thank you for your time and realism

ahead of the busy season ahead read that is the tko capital co-founder. the fema administrator is speaking at the white house right now. she is discussing hurricane idalia, making landfall earlier today in florida. you can watch these comments on live go. on the terminal. this is bloomberg. ♪ >> it is still unsafe in many parts to go out. that is what will happen under the next several days, to get a good understanding estimate of what we think the costs will be and what the amount of impact of these communities has been. ♪ and you're trying to do that through multiple systems, that makes it very, very cumbersome. ♪ it's not just tech, it's not just people. it's how they work together to provide that experience to the customer. as a finance organization that is what you want to do. ♪ ♪ (upbeat music) ♪ ( ♪♪ )

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sonali: this is "bloomberg markets." i'm sonali basak. it is time for wall street beat, my favorite bead, turning down to a slowdown in the hedge fund industry. it is specifically for the funds run by tiger cubs, the names given to the proteges of julian robertson. we will bring in hema parmar are to talk about what is going on. the numbers are abysmal relative

to prior years. they are clamoring to get into funds before and now they are clamoring to get out area so how much have assets dropped by? is it mostly outflows, performance, a combination? >> what we tracked is from the d regulatory filings showing in foes from u.s. clients alone. it does take into account redemptions but it does show the demand investors have had for these funds over the past 12 months. what we've seen is a start decrease, drop as much as 99%, 81% in some of the funds generally performed badly last year. so these are some of the biggest names in the hedge fund space because the name to stock pickers, some of the best for warming starkly but have a -- have had a difficult year last year and surprised investors have been less keen on investing their capital in those funds in the last 12 months. sonali: a trend you have been all over. you have the one where more than

one third of assets are tied into private capital, you have barely seen an ipo market this year. how much are investors staying away from that private market bet versus what you see in the general technology investing, because rbc the market was down last year, up this year, but it is that pocket of privates people are worried about. mathieu: yes -- >> yes, especially as funds had to side pocket the privates. now you cannot get out before but now you can deafly knock it out. i think there's been a bit of a change in sentiment when looking at the crossover funds and some of the people we quote in our story have said, it is sort of lost its luster a fairly because the tech stocks have struggled the past year and because of a lot of these guys really push fervently into privates and now they are struggling to -- the few ipos, struggling with the m&a market, there is not as many ways to realize those gains. if you do realize them at a significant upside. you are seeing activity on the

secondary market broadly and you are seeing people trying to reconcile the spread to get a sense of what is the stuff really worth. sonali: and that is on the exit side and what about the funds that were close to new capital and why they bought new investors -- wrought new investors in and the overall fundraising environment? you mentioned this was inflows but it's worth noting that you saw inflows but kathy burton a day or two ago had written about this idea that in the span of a year, $3 billion was pulled from loan prine alone. can they raise enough money here to meet all of those outflows? hema: for years, lone pine was closed to new capital and they have seen redemptions the past couple years, a very difficult rough road for them as well. i think what you are seeing is now their opening up, they are more likely to accept capital after a difficult year, the question being whether investors will want to invest. there is this idea of a wind being closed to new money, tiger global and others were closed

over the period we looked at but even if a find his so-called close to new money, we have seen them in the past take in $1 million to either replace redemptions or to make exceptions for impressive influential investors. so even if a fund is closed to new money, that does not pro clued them from taking the money so if they are closed and inflows are down to the degree we are seeing, it may suggest the wait list of investors is shortened. sonali: that is bloomberg's hema parmar on the bloomberg terminal. coming up, 21 chairs ceo honey rush one joins us to discuss the living etf deadline for the sec for his bitcoin etf application. that's coming up next. this is bloomberg. ♪

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to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> welcome to bloomberg markets. sonali: i am sonali basak. another day of green on the screen. we are down for the month of august but up .4% on the s&p 500. even more on the nasdaq, .5%. take a look at crude oil, trading at $81. higher for yet another date. we were looking at 79 last week.

i want to look at the two year yield. we are looking at a three basis point move. yields cooling. if we take a look at where we were just last friday, it is a stunning surge downward with more economic data left on the week. jon: i am glad you highlighted what is happening in the fixed income market and what is happening with tech with the nasdaq performance. i want to start with some news that just broke on the possibility of apple integrating more 3d printing into its business specifically in the manufacturing process which would be a sizable change for the way it operates its business that got the attention of investors in 3d printer player systems. the stock is up close to 3%.

we got a fairly sober outlook from hp, the pc maker with a disappointing outlook. we have salesforce after the bell. we are watching cannabis and spirits plays today. some bloomberg reporting about possible changes in washington that could support the industry and would result in quite the spike. jack daniels down 4%. it seems like there is an issue with enough inventory with distributors that has impacted the sales picture. sonali: now over to crypto. and appeals panel handed grayscale a big win on tuesday in this case against the sec. earlier today i spoke with the grayscale ceo about that news. michael: we will have to see upon the final operational

procedures the come through the final mandate the court will issue. sonali: you don't know but you might? michael: we will not know until we reach the end of the period. sonali: you might have won this battle but then lose the war. michael: this is a topic we have talked about before. it is a world in which there are multiple spot products, a world grayscale has long been ready for. we believe there is a world for multiple spot bitcoin products. we want investors to have choice. we think investors will look to the size of the fund, the liquidity, track record. let's not forget gbtc is the largest bitcoin fund in the world. it is owned by millions of investors. it has 3%-plus of the outstanding bitcoin supply and has a 10 year track record of

operational success. a lot of the other products are making use of gbtc's reporting and gbtc is paving the way. sonali: there is another massive market question about the structure and the fees. if you look at blackrock, invesco and fidelity, they have a history of coming in low. if you look at the fees you have offered and has made a profitable entity, how much lower exactly can fees get for the grayscale product in the form of an etf? michael: we are committed to lowering fees when converted to an etf. we will have to come back on and talk to you about what the fees are when the conversion happens. sonali: you had gone from 24 yesterday to 15 below the asset

value back to 20. can you answer for the volatility? michael: there are a couple things in the dynamic. number 1, there was increased trading volume. a lot of incitement -- a lot of excitement. now, as we eventually approach an etf, you would expect that eventually there will be a bank is him -- there will be a mechanism that would allow discounts to be eliminated. that is an important function about why etfs served in the capacity they do and it is the core of what we have been fighting for. throughout this lawsuit. make sure the optimal investment structure is there and we eliminate any premiums or discounts. >> have you heard anything over the last 24 hours? michael: we have not heard anything from the sec, only

public reporting. we have seen they are reviewing the decision much in the way my team and legal team is reviewing the decision. it is our intention to have a proactive and constructive dialogue with the sec during this 45-day period. >> why here? if crypto bitcoin will become a hotter topic overseas, why launch here? michael: this is the center of the financial market. >> clearly the u.s. government does not like crypto. michael: grayscale, coming up on 10 years of operational history, we purposely decided to set up shop in the u.s. and make use of rules and regulations and it is our intention to continue to do so. enabling investors to access the asset class and within the regulatory constraints they are

often used to. jon: that was some of our -- sonali: that was some of our conversation earlier. another group filing for a spot bitcoin etf is 21shares. let's bring in 21shares cofounder and ceo hany rashwan. when you take a look at the deadline to get you an answer, they have punted for a while now. what are you expecting? hany: the news from the grayscale lawsuit is positive. we do not know precisely what it means but the main reason the sec has been using for the last decade to reject these bitcoin applications has been taken off the table. what will be interesting to see with respect to the grayscale case is when the sec should share more on if they will have to refile from the beginning or if a surprise is coming and our

expectation is it is likely that from a pragmatic basis that they have to refile. sonali: you have had cathie wood say the sec could approve multiple bitcoin etf's at the same time. how much interest are you thinking the industry could get at the onset and how will investors be differentiating among the products? hany: we have been running the world's largest crypto etps globally. most of our business is in europe and asia and what we found out is a number of issuers is the best thing for the customer. they get more products, varieties and types. i would imagine that we would continue to do that. jon: we heard michael say that in terms of any new communication or interaction with the sec," it sounded like it had been muted so far. have you or your team had any interactions over the last 24

hours? hany: not over the last 24 hours. we have a number of filings with the securities and exchange commission. we have discussed those. i think it is important to take a step back and realize how unprecedented this action is. you could probably count on two hands of the amount of times the sec has had a ruling like this from an administrative perspective. we do not know what is likely to happen but over the next week we should find out a lot more. jon: some of the issues we have heard from regulators like the sec on subjects like market manipulation or even just protections for retail investors, it'll be interesting things -- industry things that have to be approached. hany: same way we are approaching them globally. we are other top exchanges of australia, switzerland, etc. over a dozen listings for

40-something products. we do not have discounts or premiums. there is a very easy way within the confines of the etf universe and the rules we have created to build exposure to crypto in a safe, accessible, regulated manner which is ultimately what customers are asking for in america and around the world. sonali: the sec has posed concerns about market manipulation. what are you doing to address those concerns? hany: a lot of that is why you have seen the surveillance sharing agreements. sonali: does that fix everything? hany: the majority of american trading crypto volume since coinbase is very well represented. we guarantee the funds and the underlines come from the sources. from the regulators' standpoint, they get a view, they can investigate, monitor any potential transactions they

might have issues with. that should, in our opinion, address all of those concerns. jon: let me just ask you about market reaction. if we are looking today, obviously you saw some tiptoes shares yesterday on the move. it does seem at least based on today's action, you could characterize this as a muted market reaction. what has been your assessment? hany: cryptos have increased 5% to 10% across-the-board, especially in the summer and the bear we are in right now. it is hard to predict how big this is but it is no doubt this is a massive, massive, massive deal. we think up to 10% or more of all of crypto, specifically all of bitcoin, should be within an etf format within five years.

that is a very large market that is quite attractive. sonali: what has changed? for someone who has been through this process with the sec, one of the biggest things that could bring the industry closer given that you have faced denials and delays already? hany: the strangest thing is this is not that unique to the united states. we experienced this with regulators around the world. if i had a nickel for every time we had been rejected, we would not have to do this anymore. we are addressing their concerns. we are addressing their concerns and the market has really matured in myriad ways. the regulations have increased in places like europe, introducing them. market participants, the more fraudulent players have been washed away. what we have with respect to our etps globally is a five year track record shall be no discounts, premiums.

proper investor protections. and following the regulations within the confines of what we already have for the etf's case -- etf space. jon: we have a robust landscape that has been developing. great to get your perspective. hany rashwan, 21shares cofounder and ceo joining us. coming up, regional bank stocks being impacted after a number of warnings from the fed. we will have more details, next. this is bloomberg. ♪ the first time you made a sale online with godaddy

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jon: this is bloomberg markets. i am jon erlichman with sonali

basak. time for our stocks of the hour. we are tracking regional banks. regional lenders being demanded to shore up liquidity. the fed issuing warnings to the likes of mmt and fifth third according to people with knowledge of the matter. it the focus is on institutions with assets between $100 million and $250 billion. let's talk about the balance sheet concerns and how the regulatory landscape is changing as a result. sally: these warnings, mid heightened scrutiny about banks -- in the aftermath of silicon valley bank's collapse and the autopsy of what happened, the federal reserve found shortcomings in its own processes.

regulators are watching closely from this category 4 bank which includes banks like citizens, m&t, fifth third to make sure they have adequate liquidity planning to make sure they are up to snuff, to make sure they have access to things like the fed discount window, a funding mechanism to help manage liquidity. it is also that the fed and regulators do not get caught having missed trouble brewing again. sonali: there is a tighter supervision, there are more rules ahead for the system. there are demands for corrective actions. how much of a hangover is this from the banking crisis that can lead to even more of a hangover from the banking crisis? sally: while the immediate drama seems to have faded, there has been persistent concerns remaining. banks are facing what could be costly and serious measures.

these warnings are in the form of matters requiring attention or matters requiring immediate attention. there has to be a timeline of corrective action. if they do not address these things in a timely fashion they can morph into more public orders and they could face monetary penalties. sonali: if you think about the banks that are being asked to face these private warnings from the federal reserve, it is fifth third, banks that did not face as dire problems as silicon valley. what does this mean for the continued pressure? a slew of banks could face moving forward for a prolonged. of time. sally: these banks are in the same category as the three that failed earlier this year. this is a category getting more scrutiny from regulators. it was exempted through 20 -- 2018 legislation.

unrealized losses pertaining to the securities that banks piled into came under the spotlight. they are trying to ensure they have a handle on exactly what banks have on their balance sheets and what they do not to ensure that does not happen again. sonali: bloomberg's sally bakewell, stocks lower for the regional banks. coming up, as a hurricane slams florida, we will look to the potential cost to the insurance industry. that is next. this is bloomberg. ♪

jon: this is bloomberg markets. i am jon erlichman with sonali basak. hurricane idalia is spreading damaging winds and heavy rain after making landfall on

hurricane -- florida's west coast. sustained winds of 125 miles per hour. a bloomberg insurance analyst joining us now to talk more about the business costs associated. we want to make sure everyone is ok but it is hard not to think about some of the costs we have seen in past instances. when you compare it to hurricane ian, $112 billion worth of damages, your current team estimates are much smaller by comparison. matthew: much, much lower. this storm hit a sparsely populated area florida. the population density is about 90% below the average county in florida. there is just less stuff in the way to get damaged. sonali: what does this mean for the rest of the season? will you see losses that are in line with prior years? matthew: so far, yes.

we have not hit the peak of hurricane season. there are record sea surface temperatures so i am not optimistic. there is nothing we are watching in the gulf right now but it could shape up to be an above average season. jon: there have been a lot of headlines about berkshire hathaway's reassurance exposure to a place like florida. as for some of the key insurers tied to that market, whether progressive or allstate, can you walk us through how the insurance landscape breaks down in that state? matthew: allstate, progressive, i am not too worried about any of them. i think allstate might see the worst of the group. state farm is a mutual company, it is not public. the biggest home insurer is the state -- is citizens. berkshire hathaway as an

exposure to citizens. sonali: if you look at the other companies that have entered or exited the market, where is the exposure overweight? you have seen a lot of players exit florida in the last year or so. matthew: berkshire hathaway's exposure is really big in reassurance, insurance for insurance companies. i am not worried about berkshire hathaway's exposure. the losses would have to get significantly higher to hit the reinsurance level. jon: going back to the question about what to be watching as we go through hurricane season, we are in the early innings of. it typically takes us through november. how do you think others will be preparing within the industry in a positive development if we do not see a worst-case situation unfolding in this particular example? matthew: it would be very good for a mild hurricane season.

reinsurance prices have gone up dramatically. a lot of companies have stepped into that space. they are hoping we do not see a hurricane ian like we did last year. if that happens, it bodes well for the whole industry and maybe even insurance prices in florida that have been going through the roof. sonali: our thanks to matthew l bloomberg intelligence on a very scary storm. for jon erlichman, i am sonali basak. you are still looking at the s&p higher. .4% higher on the s&p. you are looking at a down august. . jon: we have seen some of the technology stocks finding some buying strength today. we will continue to track stories such as the apple scoop from mark on possible 3d manufacturing changes. salesforce after the bell with numbers. for sonali basak, i am jon erlichman. this is bloomberg.

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>> stock prices and bond prices heading for a fourth straight day of gains. i am romaine bostick. >> i am katie greifeld. we are looking at another day of gains on the s&p 500. the s&p 500 looking at .3%. nothing to write home about but positive nonetheless. big tech doing even better. you are seeing yields fall.