matt: welcome to "bloomberg markets". let's kick it off with a check on where markets are trading. we have a risk on session for stocks. the s&p 500 up .3%, 44.7 five. the level we are looking at right now. that is despite the fact we saw inflation in in the core take up month over month. it was down year-over-year. i will show you the deep dive in a moment. our stock, the u.s. 10 year

yield coming down coming down 3.3 basis points. the bloomberg dollar index coming down but low -- below 1250. just barely at 124985, hovering around 20 year lows are last year we were way up at 1353 but so far this year, 1250 is about the high. nymex good coming off $.11 per barrel but not very much from the high we have seen for that this year. 8871 -- 88.71 and brent crude trading at $92 per barrel. let's take the deep dive look at the year-over-year inflation numbers. you can see here the headline in red has bounced back up again. we saw it come to 3.7% from i think about 3.2%. that was a reading last month. the core, here in yellow, has come down a little bit, 4.3%

from 4.7% last month. it looks like the chorus coming down when you look at the year-over-year and you can see the different components here, services, goods, food, energy is important ticking up. month over month numbers, we saw the core start to accelerate. to a pretty uncomfortable level again from about 0.2% last month to 0.3% this month, putting the full year calculated with that at 3.5%. earlier today, robert tipp gave us his take on what these numbers mean to the fed, especially the drop in core year-over-year cpi. >> it will remain -- they will remain anxiety on whether to this inflation is transitory. they will not feel it about this until they see six months, nine months of a good trend towards low core inflation. i think this is good progress. matt: let's get the take from

bloomberg economics and along joins us, the group's chief economist. if you look at core, you get a different read them the headline if you look month over month that the -- it is a different read from year-over-year. all in all, which direction does this push the needle for the fed? anna: first i would pay most attention to the month on month. on that basis, i would say this report truly is one of the most divergence -- divergent reports. within the core categories, you see two different stories. on the good news for the fed, oer, rents, and used cars continue this inflation which is entirely expected by the fed. progress in those areas are probably better than what the fed is expecting. on the bad news side, within the core, we see airfares surging, and more importantly these picky category of car insurance going up.

the increasing insurance has been going up for several months now and it is part of the lagged effect of the pandemic increase in car prices. i think that is the category that could be one of those that would keep core inflation above 3% stubbornly lodged at 3%, even long after all of these lags are through. i it is pretty worrisome. -- it is pre-worrisome. the fed would be looking to the price shock but probably will not looking through the car insurance increase. matt: thanks very much, and along a bloomberg economics giving us or take. we had of course a bevy of economists and analysts weighing in as well. chris sacca really from independent alliance saying this is in the goldilocks investors were hoping for but markets can trade and arrange as inflation

is highest but not as a shift away from the fed is a must on narrative. let's get the perspective from the president and founder at macro policy perspectives. julia, what is your initial take on the numbers which i guess you could read in any different number of ways depending on which when you decide to look at most. >> as anna pointed out, it is a bit of a shock test. you can see optimistic signs, you can see worrisome signs. we tend to think this is a confirmation, that we have exited the high inflation regime. one of the things that gives us a lot of encouragement is we are seeing a real mix of price increases and decreases. prices are not all rising anymore. the distribution of inflation has improved dramatically. we are essentially in pre-pandemic zone with a healthy mix of price increases, price

declines, depending on the industry, depending on consumer price sensitivity, so i think we will see more progress ahead. at this run rate, we really are going to see these 3, 6, 12 month averages decline. i think certainly this gives the fed more reason to be patient and gather more data to confirm that is the case. matt: i just want to ask about the auto insurance, because anna highlighted that and i thought the number was a little jarring, a gain of 19.1% in august. it was the 12th month in a row of double-digit inflation for auto insurance. what does that mean? julia: we've been tracking what we call vehicle related services inflation including car insurance, car rental, car repair, and all of these are showing the second-round effects of very high car prices. that was the first shock we got and now we are getting a ripple

effect through car services. if we look at the level of car services, prices versus the level of vehicle prices, they are about caught up. so we do expect that pace of gains to slow in coming months. it has been a source of pressure, so it is absolutely something to keep an eye on, but meanwhile, we are seeing healthy signs of consumer price sensitivity in a lot of core goods categories, other core services categories. consumers are back to relying on their labor income and being a little more choosy and show me the deal to win their dollars. i think that is a good sign that we are going to see that healthy mix continue. there will be pressures in some areas, easing pressures in others, and overall we will trend down toward a more comfortable zone for the fed. i think one of the questions is, are we focused on the level or

rate of change? continued progress means you have got rates where you need them. you are applying downward pressure on inflation. that is kind of been the game plan all along, find the level of rates where the economy is cool enough and consumers are sensitive enough you are putting down more -- downward pressure over time i think they can check the box based on the report. matt: how is the consumer doing? because i look at a stream of data i get from those over at apollo. one of the trends i noticed his savings are being depleted, more purchases are made on credit cards, there are more the liquids he's on car payments. that is a concern, those trends. julia: absolutely. we are seeing the extremely good position consumers were in coming out of the pandemic with

strong balance sheets, liquid balance sheets, lots of access saving, that picture is ebbing significantly. depending on -- there's an argument around excess savings still there or gone but they are close to being gone. we are as you know seeing rising the link would seize on credit cards, auto loans, and this is a sign consumers are facing some distress. now let's look at some headwinds coming forward. the resumption in student loan payments for some households, the end of some of the childcare subsidies that were in place to the pandemic. each of these things takes a bite out of consumer purchasing power. what a fellow colleague over at cox automotive, jonathan smoke, indicated that these prices and interest rates, half the u.s. population can no longer afford either a new or used vehicle. i think we have got policy in place that is constraining

consumers and we will keep feeling that and seeing that come to the data. we think the fed is done raising interest rates. matt: always great to get your perspective, one of the smartest minds in economics, thank you for joining us. julia coronado, president and founder of macro policy perspectives. coming up, john zito will join us of apollo and will talk with sonali basak about his credit outlook and give us his take on current financial conditions. that is an interview you do not want to miss. this is bloomberg. ♪

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matt: this is "bloomberg markets." i'm matt miller. last october's bloomberg invest conference in new york, apollo's

deputy cio of credit, john zito, said there was an amazing environment for credit investors at the time. take a listen. john: we are pitching ourselves where yields are today. we have been building our credit business for the last 20 years and effectively a majority of the time we built it with rates at zero. matt: fast-forward and investors are eagerly awaiting the fed decision every month it seems like we are watching for where the central bank will go next with rates, reading the tea leaves in any way we can. markets wondering if we have hit yields at this point. here with us is sonali basak who has john zito with her. >> thank you for joining us. when you made the comments, we were just starting the rate hiking cycle so when we look to now and we may be closer to the end then beginning, what is left of the opportunity when you look to capitalize on higher yields? john: thanks for having me. i think we have those comments

the s&p had been down 8% and people were not loving credit at the time. flash forward to today, obviously the environment is still very exciting. for the last 14 years, we have had effectively debt market subsidize equity markets. so with rates at zero you had to be an equity investor, you had to -- if you did not taste -- take risk, you would not earn the return to serve your clients whether a pension or endowment. today it is different. you can achieve your cost of capital by investing in say field in investment grade credit in direct lending, anything in the credit markets given where yields are you can achieve your return. it is a lot easier and people have not really built their teams to invest in credit. they are still doing the same thing, investing in equities and internally we joke investing in equities is like writing with your right hand, investing in

credit is writing with your left hand. the last 14 years, people have not practiced writing with your left hand. sonali: when they are writing with their left-hand, i wonder what mistakes they make because we also hop into a cycle where ubs is predicting a 10% default rate into next year at the peak in private credit. john: there are two things, how do you originate an asset and how do you underwrite an asset? rest we have invested $8 billion in the last 10 years while rates were zero in 16 different platforms including the cs atlas transaction which is the largest asset-backed origination platform in the world. outside of the banking system. we have been underwriting on our own balance sheet for third-party investors. we have 450 investment per fester -- professionals at apollo and have been doing it for multiple decades on the credit side. we feel like we have been practicing writing with our less -- left-hand using that analogy but also invest tons of capital in our origination capabilities.

sonali: it sounds like you are brought -- about to bring in more capital or trying to. bloomberg reported apollo is looking to raise billions of dollars for the alice biz it that was carved out of credit suisse. what was the grand plan? john: we have been public about our demands for asset-backed generally. a place into what is going on -- we think there is a large market that is untapped in the private investment grade space, corporate and asset-backed. we have raised equity and debt capital for that platform and will grow it to somewhere between $40 billion and $70 billion the next several years. given the lack of capital in the markets today, given what has gone on with some of the banking system, clearly there is a huge hole that white space for us to fill. sonali: speaking of the banking system, apollo, alice was one of the first members to step up and provide the financing line in march 2 pac west in the doldrums of the cycle.

how much more opportunity is there in the banking system to step up? two days ago you heard citizens saying they are night -- trying not to unload at a fire sale. sonali: we are writing -- we will be growing somewhere between 70 and $100 billion per year. we have extreme demand for investment grade product, both for our balance sheet and clients balance sheet. anything coming out of the banks that is safe and investment grade yield, we have a team that could underwrite it or has looked at the asset before as you mentioned. we came up with $1.4 million in 24 hours to pac west. i suspect that anything that looks like that we are in the room on has gotten more competitive we have -- we want to be patient with the capital and really price the risk appropriately. we have seen some of the market has been on prices aggressively last couple months. sonali: you keep saying safe and investment grade but it is not like you are not willing to take on risk. we have seen you on interesting leverage loan deals and even

bankruptcy loans. you think about yellow, which you offloaded quickly, but you are involved. what kind of risk are you willing to take on in a market where people are starting to get worried about loss of capital? john: this, for us, is about liquidity versus illiquidity risk. we have long-duration liability so we have sticky capital. so it is logical for us to provide a less liquid security. generally speaking private credit. if you look a private credit on wikipedia, it is -- the entry is 10% of the entry for friend tries. friend tries you gone french fries, the wikipedia page, it is six different names, 10 ways to make it, and if you look at private credit, it just says direct lending. for us, private credit is investment grade private credit, it does not mean more risk. it just means maybe a little less liquid. we did a 2 billion-dollar dale -- deal for at&t, we did one billion-dollar deal, 100 to 200

billion-dollar companies in the investment grade space that wanted a more structured solution and wanted to diversify funding away from the traditional funding sources. sonali: these are deals. you mentioned deals that banks used to do. we have reported at bloomberg that barclays suck, -- barclays, softbank, and others are starting private arms. will you partner with the bank to get the job done as they try to enter the private credit markets? john: on all those transactions, there was a bank involved, i feel like if you talk to any senior members of the banks, our relationships with the banks, it is as strong as it has been. there is so much more to do together and i can like every month we are finding more ways to work together to take a stickier capital base, longer duration capital base, with origination capabilities that span multiple decades at the banks and match them with our capabilities. i really think it is the early

innings of us working better together. there has been lots of headlines about powell and blackstone dancing in the streets be a die think we are dancing with the banks but that is fine, that is how it goes. sonali: speaking of dancing with the banks, one bank wants to change the terms of how they dance with you. ubs. we reported they want to try to renegotiate some of the terms of their asset management agreement that was struck when credit suisse was a standalone bank. they have the opportunity to renegotiate those terms? john: so has been documented i think we close on the transaction in february, all the employees have transferred over, so several hundred employees, we have 280 relationships with originators in the asset-backed space, 100% consent from all originators that transferred over. the business is closed, it is transferred, and we run the business to make sure as we grow the business that we are facilitating the clients in a way that is as seamless as possible.

in the first six months a disclosing, we have done a great -- the team has done a great job of facilitating them. sonali: before i let you go, safety, safety, safety, we have heard that now if you times. what is the market missing? you have to wonder with a flush of money into private credit or even just how sanguine you are seeing yields behaving in investment grade and high yield, what are the mistakes that are going to be made? will -- where will people lose money? john: since 2008 we grew nominal debt from 100 when he $5 trillion to $250 trillion. then we decided to raise rates by 500 basis points in 12 months. it is slowly coming to the system. the problem is the average coupon on the high-yield bond is 6% with eight year duration so they are not feeling the rate hike. the average investment grade coupon is 4% and they are not feeling that rate hike. as that flows through the system, it is likely things are going to slow, you see student lending come back, turning the coupons back on, that will slow

the economy. it is likely those rate hikes will flow through the system the next several years, and as maturities come due and how you have the debt, it is likely you will need either some new capital to extend duration or more equity and hybrid capital to provide solution for both sponsors and companies. i think we're trying to be as patient as possible on the things that really levered up during the zero rate environment because it is highly likely they will need a more longer duration sustainable capital structure. sonali: john zito, deputy cio of apollo's credit business. matt: thanks very much to both of you. still ahead, jetblue's cfo is working to deliver as much growth as possible while the company's merger with spirit airlines is being challenged. we hear from her next. this is bloomberg. ♪

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matt: this is "bloomberg markets," i matt miller, jetblue's cfo has a complicated job at a 3.8 million dollars -- billion-dollar merger challenged by the department of justice. until that is settled, jetblue has to deliver as much organic growth as a can in a very volatile environment for u.s. carriers. she told me how she is dealing with the uncertainty in the new episode of bloomberg chief future officer. ? . > we have fantastic teams building plans for both scenarios. it is going to laos to turbocharge our organic turbo plan. if spiro does not happen, which i fell confident it will, we have opportunities we can continue to implement in order to bring jetblue, the jetblue experience, to more customers. i'm excited in general about growth. matt: jetblue's growth plan begins with modernizing and

expanding its fleet. replacing older aircraft with airbus a two 20's that add passenger capacity while increasing cost efficiency and adding airbus a three 20's to support long-haul routes. delivery delays caused by supply-chain problems are proving to be headwinds. >> we will need to get creative on how we source airplanes in order to continue the jetblue growth trajectory. >> we have a very big -- we have a big block of airplanes but there were engine issue so we have airplane on the ground with our engines because they are not enough engines to support them. now that is the biggest inhibitor to the organic plan. matt: you can watch more my interview on chief future officer featuring the jetblue cfo, ursula hurley, tonight at 9:30 p.m. new york time and find it of course on our website at bloomberg.com.

we are looking at markets right now that are up. the s&p 500 gaining .3% while dominic screwed loses $.42 to $80.42. this is bloomberg. ♪ (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

>> welcome to bloomberg markets. matt: let us get a check on what is going on in the markets at this hour, risk on all day, not huge gains we are looking at the s&p 500 up about a third of 1%. the levels you are seeing, even though we saw some inflation data cut out harder than anticipated. the yield is down 3.3

percent. investors feel comfortable enough to buy those bonds today as well. the dollar index coming down, the lumber dollar index under 12.50. $.50 a barrel down,. the global benchmark brand over $92 today. we had seen some increase and they are letting off a little bit of steam. jon: with individual movers some tech names have been finding their group today, apple is down, the market is digesting the latest suite of iphones. also some mixed reaction to comments from a chinese spokesperson on the country's position on iphones. bloomberg had that reporting recently on a possible extended ban from state owned agencies in using the devices.

still a little bit of completion there. murder and is avoid any confusion and they are focused on flu vaccines going forward and shifting away in part from that covid vaccine focus we have seen. investors like what they are hearing, they are tracking the story. we are sector wide seeing some negative reaction in the airline industry with american shares down more than 5%, travel story is less about that, it is a more about the bottom line performance, jet fuel costs, labor related costs, spirit of the coming out and talking about some promotional activity hurting their bottom line. the industry under some pressure in trading today. matt: what a day to release my episode of chief future officer were i interview the cfo of jetblue. the u.s. cpi report, the prices for transportation services rise, earlier from apollo's move

who is keeping an eye on services. >> it is the case of the fed may have to step on the brakes. they will keep brakes elevated to make sure that the service goes down because we have not seen that yet, that is at the core of this discussion, we need to see goods come down because the goods sector is at. pre-pandemic levels. we need restrictive monetary policy ahead of us. matt: let us get a perspective from kathy jones at charles schwab, great to have you with us. the market reaction to the inflation data today was quite telling. in terms of positioning, i believe that you are looking at the environment going forward where the story of elevated rates may change. can you walk us through your own positioning based on what the numbers are telling you?

>> our view is inflation will continue to come down, there has been in the surge in energy costs which is flowing through certain parts of the economy but you can also look at higher energy costs as a tax on consumers and businesses. we are looking at it that way because consumers do not have a lot of extra spending power relative to say a year ago or even six months ago. we are positioning for the fed staying on hold for a while here. inflation continues to fall. that raises real interest rates. that tells us that we want to be moving a little further out of the yield curve because of the get into next year the fed will be cutting because the economy will be slower because inflation will be coming down because they have been a very restrictive policy stance already for quite a while. we will be moving out a little bit. the yield curve may be in the

sweet spot in that two or five your area that would benefit -- year area to cut some rates down the road. matt: i keep wondering what would bring those cuts. we have a great new function on the bloomberg eca and go, -- eca go. inflation has been coming down, if you look at the headline number it is turning back higher and this has got to leave the consumer stretched. especially when you see student loan payments coming back, among other things. are you worried about a recession? >> i think a recession is likely next year assuming that that keeps the policy where it is or tightens further. keep in mind, with a student loan payments, real incomes now are not nearly as quickly as

they were. looks like hiring is slowing down, getting that kind of sluggish labor market. also by sitting where they are, the fed is tightening if inflation comes down. will rates go higher, that raises the rate for investment of consumption and their quantitative tightening. where word by doing nothing, higher up for longer could end up triggering a recession in the second half of next year. timing this stuff is difficult. we think policy is restrictive enough to restrict given this environment and we do worry that a recession could be on the horizon. jon: you talked about a strategy and duration in a fixed income market right now. given your comments about the recessionary risks, let us talk about the corporate profit picture and how ultimately that influences the kinds of corporate debt you are leaning

into right now? >> we have been getting increasingly cautious about lower credit quality. high yield, in the low end, leveraged loans, all of those are starting to see as these companies have the weakest balance sheets. they are saying their costs rise pretty rapidly. particularly in the leveraged loan market. these companies are starting to pay a percent or 10% interest rates and that is a huge jump from where they were a year ago. we are seeing bankruptcies rise, corporate profits come down. we are seeing some defaults in that part of the market. i think the lower credit quality and high-yield will probably start to see that deterioration as well. those spread start to widen and right now, in the high-yield market you are not really paid to take a huge amount of risk. you get the coupon which is positive. which is good. but you are also not getting

that extra compensation should we run into the default cycle that start to pick up. jon: why is the spread so tight and not wider? >> it is a supply, the demand has favored the market up until now. issuance has been relatively low because a lot of companies did turn out their debt longer term which is a smarter thing to do. also to hit those maturities meant next year. it has been a big pickup in the private credit markets on the lower credit quality bonds. we see financing was out of the public markets into the private markets and that gives us less transparency, less ability to actually evaluate where things are and that probably has flattered the high-yield market to some extent. just because it is not marked to market does not mean it is doing well. that is the the question, can

they absorb this and lend to these companies. we call it land and pretend. how long can they do that before something has got to give? matt: great to have you with us, charles schwab, she fixed income strategist kathy jones talking to us about these markets. we are going to go to a different market and that is cars. mercedes-benz, usa ceo will point us to discuss the auto outlook as the industry braces for a potential union workers strike. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach.

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time for our stock of the hour,

ford shares have been getting stock shares raised from a buy sell to a buy. despite the auto workers strike tomorrow, the union president is planning to bring an update on where things stand at 5:00 new york time. there will be watching closely. matt: we will be watching that very closely. of course, this strike is only going to directly affect ford, general motors, and still lantus but there could be indirect effects. we spoke with the north american ceo of hyundai and asked him if he is worried about the industry impact. >> we raised the bets to anybody because any disruption would have the impact in the supply chain. over the last two years, we have

learned to be less reliant on one supplier. also we are integrated vertically with other companies. i think we are in a good place for everybody. and we will continue to produce cars and sell cars. let us discuss this with the ceo demetrius to lock us -- with a ceo. talking about the exciting new models, on the production part because you do build cars here, i think the gls, the gle, some of the class a dance built in the tuscaloosa plant, -- class a cars bill in the tuscaloosa plant, what cars do need to be prepared for if the uaw strikes? >> we do produce in alabama, we have our electric vehicles and

the suv and we produce also in their. re. we hope the strike does not take place. our two factories are not under uaw. any disruption and any issue we have will give some shocking ways out to the whole industry. our focus is the launching the markets and again, we are looking to a solution which will not affect the industry all in all. jon: at one point you have to make decisions? are you planning for the worse scenario right now? does the supply chain allow you to wait to see how things play out over the next day before you have some kind of action plan in place? >> i want her to my colleagues with factories in the u.s., i will stay on the marketing side which is where i am taking care

of. matt: let us talk about the cells of mercedes-benz vehicles in the u.s., for a long time it was a constant fight between mercedes and bmw, it was the biggest volume producer, luxury vehicles in the world in the u.s.? it seems like you are more after margins then you are after volume. how does it look? >> i think we are after value, the value we create for our customers and the value we create to our product. also, one of the transitions to the electric vehicle future, our focus is in providing vehicles which have the technology which have features that the customers like and the value out of it which is serving our customers in the u.s. market. jon: we had a guest who suggested it would not be out of the water possibility to see a recession in the united states

heading into next year. the luxury market has generally speaking held up so far with some economic uncertainty. what is your outlook for the luxury market? >> it is true that the luxury segment has been growing, there was also a pent-up demand out of the last couple of years of supply challenges so the market has been in growth. we have been delivering and designing and put on the market new products. the combustion engine and also the electric vehicle side. new products, very attractive and a lot of new technology coming to the market and obviously, helping us to keep growing as you said in the market which is a good thing from the economic perspective, more tough. jon: i drove the eq s recently and i loved everything from the pedal feel to the luxurious interior to the newmbux.

even the fake sounds i thought won me over. obviously it is $125,000 vehicle, the version i drove, with that kind of money you expect to be pleased with all of those things. do you still have pricing power in this market? or are people starting to be concerned about paying so much for a vehicle? >> i think on one hand as i said before we have the value in the vehicle and it is not only the suv which again is produced in the u.s., we also have another five products in the u.s. market starting with the qb and all the way up to the aqs suv. and with the aqs suv, the most luxurious version of our aqs suv. our products offering quality and technology and this is what

the customers are looking for. obviously, in the last year, what has been more challenging is the high interest rates and this is affecting the market but also the customers cannot afford a lower version of let us say more attractive economical versions of our products. jon: before we let you go, the charging infrastructure has gotten so much attention. mercedes embracing tesla's north american charging standard. walk us through what that process will be like for you? >> we try to build quality for our customers, we are offering the best electric vehicle parked in the market but also we are offering convenience. as you stated we offer as of 2024 vehicles will be able to charge on the next chargers in

the u.s. but also announcing earlier this year that we will be building the first mercedes-benz branded charging stations. along with another six automotive brands we will develop our own charging network for high-performing chargers in the next years. vehicles will be able to charge in every charging station in the u.s.. it is big. it is a big convenience for our customers. matt: we appreciate the time today, thank you for joining us, that is the mercedes-benz usa ceo, joining us, citigroup revamping its management structure to boost the company's 's price which has been having a challenge. we will talk about the leadership plan for jane fraser going forward. this is bloomberg. ♪

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jon: this is bloomberg markets, citigroup is preparing for a wave of job cuts as a wall street giants restructure. the ceo addressed the plant at the global financial services conference earlier today. >> today's announcement is indeed about putting that next step, the big next step in place and initiating it which is to not only put the organization in the best strategy place, it is about running a bank differently. and about driving clearer accountability for doing so. matt: jenny surane covers citi for us, this is a bank that has massively underperformed all of the other big wall street banks and i'm guessing this is her

attempt at fixing that. how do investors embrace what they have heard thus far? >> they are up a little bit today, this is a sign that frazier is taking it seriously when investors say that you have laid all of these plans and identify all of these areas that can help improve returns but we do not see the results. this is her saying i hear you i see you, i am working on it. she is outlining some pretty steep job cuts that will happen. they took full accountability for actually not just getting rid of consumer units but actually taking out those costs and making sure that they stay out. this is her best effort for kind of trying to put the proof behind the putting but i think there is a long way to go for them to turn the story around. jon: between your reporting and the comments from jane fraser this idea of more accountability and better performance seems to be shining through here. in your own story today you highlight the fact that the overall headcount of the company had grown quite substantially? >> i think that is another

reason why investors today might still be cautious on citigroup. a lot of the folks who got promoted to be on jane's executive management team are still running the same businesses they had been running for the most part. a few major changes, folks like peter, he is running the banking unit. you have for the most part this team is pretty similar to the one she had in place before, just removing one layer of management. i think that is why you are still seeing some tepidness here. the stock did not take off riproaring today. i think you are waiting for folks to see can she really pull this off? is this for real this time? will we see material changes? matt: m&a has been lagging, is citi well-positioned to take a bigger piece of the pie? >> i think with a big investment bank it is punching under its

weight for how global they are. that is still a turnaround story. they have been investing and they said they want to capture more of the market share. it has been bits and starts. i cannot say they have made any big of changes here that that will actually turn around. it is something they know is a problem and want to fix. jon: thank you for joining us, she covers citi for us as for five years, their stock has underperformed 30% during that time. take a look at what is going on in markets today. citi is up a little bit and we see a slight risk on sentiment in equities. the esp is up, despite the inflation numbers we saw today, month over month, core inflation was up 0.3%. that compares to 0.2%. the same month last year. going the wrong direction, nonetheless investors are buying stocks and bonds, and also worried about the fed

raising rates. we will see how they are positioned heading into that by decision date of this month, this is bloomberg. ♪ (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. romaine: if you are looking for 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

economic clarity, keep on looking, live, i am romaine bostick. funny: welcome to the close. -- vonnie: welcome to the close! we had some conviction, it is picking up with the nasdaq 100, this is the line the fact we are seeing some regional banks lower