jon: welcome to "bloomberg markets." matt: let's get a quick check. looking at 1% gain on the s&p 500. if we close the session and the green every single day this week we have been up as the market thinks the fed is done and continues to see signs like the jobs number this morning. the fed does not need to raise rates again. the 10-year yield coming and 11 basis points.

454.76. it was just 12, 13 days ago we were up over five. the bloomberg u.s. dollar index at 1256. down almost 1%. a tailwind for equities. a weaker dollar, weaker oil. nymex crude at $80.35 a barrel. jon: we have got a market reaction to apple's results and it's a negative one as investors are trying to assess the outlook for the cupertino company. apple down but perhaps the fact you have that macro story and some reasonably strong results will received within related industries -- expedia shares having the best day since 2020. post results. the former square, block having a nice move higher up 12%. the view on the street is this might be a turning a corner for

the business. you talked about the jobs picture. i want to remind our global audience we got the employment report in this country which showed signs of cooling. the economy added 17,500 jobs in october, less than anticipated. 25,000 was the call from the economists. now 5.7%. we did see some wage growth. it was less than expected. you have this recipe playing into the idea of moving away from a rate hiking cycle. matt: a cooler picture in the u.s. as yields continue to swing. fed swaps are signaling 100 basis points in rate cuts for all of 2024. it was what rick rieder told bloomberg this morning about the reaction to the job data. >> i don't recall a more technically driven market then we are seeing today. that is part of why some market

single names are so shallow. the depth is atrocious because and it's incredibly technical market in almost all forms. jon: let's keep the conversation. joining us now is rubeela farooqi. what was your reaction to the jobs numbers today? rubeela: great to be with you. we're definitely seeing a slight slowdown, a softening of market conditions. the headline number i would not overemphasize. it was impacted by the strikes that took off quite a bit. we are seeing a slow deceleration. a pickup in the on employment rate. a decline in the labor force which was disappointing. there are some indication that we are moving in the direction that the fed wants the market to move. i would not overemphasize one month's number. we need to see where we go from

here and that is where the uncertainty lies. the base case remains we will see the labor market loosened because of the effects of restrictive monetary policy. matt: because of the long and variable lags. we saw the payroll net revisions, a drop of 101,000 jobs. the number was 150,000. the whisper number was 208 the last time i checked. a decent miss but still adding jobs. what do you think we need to see before the fed cuts rates? rubeela: i think we are far from that sort of outcome. i still think -- that has been our view all along. we are going to avoid recession. job growth will remain positive. for the fed to cut rates, you know, two things can happen. procession or the policy stance

does not need to be that restrictive. procession is not part of the baseline. recession will eventually happen. we do think the fed is very far from that backdrop. you are talking about the markets pricing and 100 basis points. the fed is looking for 50. in our view and their view it is because the policy stance will not need to be as restrictive as the inflation continues to come down. it can be one of two things. recession or the policy stance does not need to be that restrictive. jon: when you look at the data in front of you and some of your expectations, what kind of economic scenario do you see playing out? rubeela: we are looking for a substantial slowdown from here on out. i would like to remind everyone the economy has continued to outperform so far this year. the growth rate in the third quarter was spectacular.

it was very unexpected. we think the lag effects of policy will catch up. household demand for the core services, concerts and events, sporting events, those will ease. we are looking at the effect on manufacturing. we don't think that is going to be broadened into the economy. it is going to have an adapting effect. borrowing costs are affecting households and businesses. the effects of these 525 basis points of tightening, that will eventually show up. we have not really timed it will so far. we do think those effects are going to start more broadly going forward. matt: we are following the back-and-forth, a little bit of us that between stanley druckenmiller and janet yellen. he says she and the treasury department, one of the biggest blunders in u.s. history.

she came back saying we are pushing out maturities. he's talking about the fact she did not borrow at a low rate. now he is saying she's overlooking $8 trillion in the fed balance sheet. we should be worried about the amount of debt we are paying for. next year we will have $9 billion -- $900 billion in debt service and costs. more than we are training for t -- paying for the military. why did we issue 50, 60, 100 year debt? austria did it at 50 basis points. when you have done it? rubeela: that's a great question an interesting question. i'm not really sure what the -- they never really have shown much openness and willingness to issue tha kind of debtt. matt: why not borrow super long for super cheap? whenever going to -- when are we

going to get back to zero interest rates again? wouldn't you have thought this is a once-in-a-lifetime possibility? let's cash in on this. rubeela: absolutely. i agree with you. did anybody think yields would rise as much as they did? we have been through this cycle. up until a few month ago long yields were still very low considering the fed had raised five basis points. -- 525 basis points. i do agree with you in hindsight. 2020 in hindsight, yes, the treasury might have done that. there is also the demand-side. how much demand is there for 50, 60-your paper. i think -- 60-year paper. i'm sure the debt managers took that into consideration when they decided not to do that. matt: rubeela farooqi,

high-frequency economics chief u.s. economist. restaurant brands ceo josh kobza joins us as disappointing sales from burger king way on those shares -- weigh on those shares. this is bloomberg. ♪

>> jon: this is bloomberg markets. time for our stock of the hour. we have been tracking restaurant brands. some analysts raising questions about the performance of burger king and the latest quarterly results. the management team has been

prioritizing improvements. this is the company that operates chains like popeyes and canadian favorite tim hortons. allotted she one -- a lot to chew on. matt: apparently the firehouse subs are delicious as well. i have not had a chance to sample one. rest assured i will do my research as any good journalist would. josh kobza joins us, the ceo of restaurant brands. they own those chains. josh, let me ask you about what we saw. the stock is down in u.s. trading because burger king reported comparable sales for the third quarter that missed estimates. the other brands beat. at least tim hortons and popeyes beat. what does it look like for you right now, the u.s. consumer in your restaurant? josh: thank you for having me on the show. i was happy with the quarter. if you look at the business overall globally we have posted 7% same-store sales. that's a great outcome.

it was consistent across all of our different brands. with tim hortons in canada we had good same-store sales. with burger king u.s. we were up about 3.6%. popeyes was up about 5% in the u.s., too. i think the analysts were a little on the high side but they were great results. with burger king we have seen a lot of progress. if you look at it, we are a year into it. we have put in over $400 million into the system and are seeing great returns on those investments. same-store sales of gotten better each quarter. while traffic had been weaker in prior quarters, we have been making progress on that front. what we shared today was our traffic for the third quarter was actually flat, the best result we have had in quite some time. it was ahead of the industry. we are outperforming our competitors for the first time in a long time. that's a lot of progress. we have more to go but i think

it is a good start. jon: one thing i believe i heard on the conference call today was a long term, 100% digital goal when it comes to a business like burger king. i think people are starting to get an early taste of kiosks and restaurants. there are thousands of locations in the united states. can you walk us through how you might be rolling out a strategy like that? josh: you are right, jon. we are thinking about how to make our business 100% digital around the world. we have great examples in our international business. david who runs the business says it is a win win win. it is better for the guests. they have a better experience. it is better for our team members because it reduces the stress they feel in some interactions. it allows them to focus on great products and expanses. it is a win for franchisees because it improves efficiency and tends to help with margins as well. all the things we are seeing in

our international business where we have many restaurants that are 100% digital are things we want to bring to the u.s. that can be things like mobile ordering ahead of time. increasingly means kiosks. while the u.s. and canada have been slower on the uptake of kiosks, we think the time is coming and we are seeing great results. we are in the process of rolling out kiosks to all of our burger king restaurants. in the restaurants we are in so far the reception has been great. we see almost all of our restaurant transactions happening inside the dining room almost entirely going to the kiosk. after people get the hang of it they always back in like it better. there's a lot of encouraging things. our digital sales this quarter at burger king and popeyes in the u.s. were up 40% year on year. we are seeing a lot of progress. matt: i can't walk by a delicious burger and i have problems with fried chicken as well. i need to lose a solid 20 pounds. it's been an issue for a few years. i thinking -- i am thing about

ozempic or one of these glp-1's. is that a concern as more of your customers around the world will be getting on these and eating fewer burgers and fewer fried chicken breasts? josh: we really have not seen it in the data yet. if you look at our results this quarter, as i mentioned, for our biggest brands in the u.s. we actually saw great trends in sales. they are doing well. traffic is flat year on year. we have stable traffic. we're just not seeing it in the data yet at this point. jon: josh, i want to ask a marketing question. finding a way to stand out is something you guys try to prioritize. there was this viral story earlier this year with in thailand the all cheese cheeseburger, stacked high cheese, how did that play out? was it successful? josh: inner international

markets around the world you see a lot of different innovation and a bit more localization that we probably see in the u.s. and canada. i don't think you will see to me things that look like that in the future. tom curtis and the team have been focused on our core equities for burger king. things like the whopper, flame grilling and have it your way. that is more of what you will see in the next few quarters from us. jon: a healthy amount of burger. maybe not as much cheese. thanks for breaking it down for us. josh kobza, the restaurant brands ceo joining us on courtly results. coming up, sam bankman-fried facing 110 years in prison. we will talk about what the crypto world looks like without him at the forefront. this is bloomberg. ♪

♪ (captivating music) ♪ (♪♪) the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation. (♪♪)

>> the cryptocurrency industry might be new.

the players like sam bankman-fried might be new. this kind of fraud and corruption is as old as time. we have no patience for it. jon: that was u.s. attorney damien williams after sam bankman-fried was convicted of a massive fraud which led to the collapse of ftx. some observers see the conviction as setting the stage for a more regulated future as digital assets are more widely adopted. crypto exchange executive bobby zagotta joins us with his reaction. the jury did not take long on this one. does that surprise you? bobby: it doesn't, although i must confess i felt a sense of relief when i heard the verdict. it seemed quite obvious to me what the situation was. it seems like the prosecutors did an excellent job. you always worry just a little bit when you have someone who has proven their ability to deceive so many people and

influence of any people that they will somehow find a way out. i was relieved that did not happen. matt: do you think the average man or woman on the street conflates the fraud committed here by sam bankman-fried with the crypto industry? bobby: unfortunately yes. i really like the way that the u.s. attorney mr. williams characterized it in the clip. this is a fraud. capital f. you have a bad actor who engaged in a number of criminal behaviors. he did so willingly, knowingly and took extra steps to keep it from being found out. it is unfortunate but it happens. there's a lot of examples as you know when the traditional banking markets and other financial service markets in every industry. it does not mean it is ok or that crypto gets a pass. i wish people could distinguish it a little bit different than some of the other risk factors associated with crypto. matt: i don't know if you have

any insight into anymore -- anymore insight into the case and we do. a lot of people wonder what the sentence will look like. there is a big range of recent convictions. elizabeth holmes got 11 years. bernie made off got 150. what do you think sam -- where do you think bankman-fried falls into the pantheon of conmen? bobby: i'm just as curious as you are in terms of how the sentencing phase will play out. i don't have a strong opinion. i leave it to the judges and legal experts. i do know that in this case a lot of innocent people got hurt. a lot of retail investors and institutions. the numbers are quite staggering in terms of lost money. we will see how the estate plays out. obviously, more than a slap on the wrist is what is in order

here. in terms of maximum versus minimum, it is hard to say. jon: this is such a big story, bobby. matt was asking about sentencing. that is a next year story. that is the reality. they will be a lot more conversation around sbf. how does the industry make its case for this being something very different when people are going back to the story? bobby: i would not have preferred that the industry takes this path in terms of evolution. it needs to be further regulated. bid stamp -- bitstamp, we have always leaned into regulation. we were the first to get a license in 2016. we have the most extensive licensing footprint globally. we don't do that because we love working with regulators. we believe it is a necessary condition for institutions and retail investors to have the

confidence necessary to really participate. that is what we want. this trial and this unfortunate debacle i think accelerated the consciousness of the investing public into why regulation is important. i think there will be quite a shifting of players in terms of companies like ours that are onshore, regulated in meaningful jurisdictions versus companies that are offshore or it is difficult to pin down what jurisdiction they are operating out of. jon: briefly, what can you tell us about the dialogue with your own customer base and what they are curious about right now? anything they are concerned about? bobby: i hate to say this but bitstamp has benefited for sherry -- has been a beneficiary. there has been a flight to quality.

bitstamp is the only cryptocurrency company that can say we have seven years of global clean audit opinions from a big four accounting firm. we are the only crypto exchange that can say we have got segregated custody via a qualified licensed custodian versus the exchange. there's a lot of governance practices we have made a cornerstone of our business that are still developing in parts of the industry. the conversation with our customers is reassuring and clarifying exactly the complete nature of our approach and therefore our partnership with customers. just as an example, corporate onboarding continues to increase, albeit in a tough market with lots of banking friction and other things.

in the first half of 2023 are corporate onboarding was up 26% versus the second half of 2022. matt: we have to leave it there. bobby zagotta, ceo of b itstamp u.s. this is bloomberg. ♪ the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com

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romaine: u.s. stocks on pays for the best week in 16 months. live from studio 2 in new york, i romaine bostick. katie: i'm katie greifeld kicking up the closing bell in the u.s. another rally on our hands. you look at the s&p 500. up about 1.2% right now. big tech even more so. nasdaq up by 1.3%. the october jobs report came in cooler than expected.