matt: welcome to bloomberg markets. s&p holding at 4500. u.s. 10 year yield moving down nine basis points. amazing to think we were over 5% weeks ago. the dollar index down. the real shocking move is 72 on

oil. west texas intermediate off 5%. big moves in retail stocks. big retailers reported this week. macy's one of the fortunate. investors positive after they reported better inventory control. walmart moving down 8%. target was up 18% yesterday. abigail: macy's, investors like the report. surprise profit. they were looking for flat. this has everything to do with inventories continuing to

improve, not as bloated as they have been. one strong category for all the brands was beauty. people are spending on the face. target and macy's rewarded for similar stories. inventories down, profitability better. t.j. maxx, forecast not looking so great. walmart raised slightly but more the color commentary they gave in terms of a week consumer. target had similar comments yesterday. they were so cautious on the near-term. rising interest rates and repayment of student loans. the difference is where we came from. dear today, we have a real difference. on bottom, target and macy's. the beaten-down stocks, that

catch up trade wanting in on quarters that were decent. t.j. maxx and walmart have been doing well. matt: thanks. we have a lot of retailers still to come out with earnings. lisa cook says some sectors are showing signs of strain. "as we tried to identify the full effects of monetary policy tightening, i'm considering whether small businesses, housing sector and low and moderate income households could be warning a broader stress." let's discuss with anna. this is the age-old game of

figuring out where the u.s. economy is going by gauging the health of the consumer. anne: i'm glad lisa is paying attention to the balance sheet of the lower income households. the stocks of walmart and t.j. maxx which cater to lower income households are not doing well and that is suggestive -- half of the lower income half of the country is increasingly feeling strain of higher inflation and softer income growth. it confirms our call. they downturn is either here or we are marching into one. matt: repayment of student loans is brought up again and again. has anybody run a study to show how much this will slow down the

economy? anna: wall street banks, are self including, have looked to the impact on fourth-quarter gdp. not needing to pay, suddenly needing to pay will dampen gdp growth. the numbers are small. reestimate it will only knock .2 percentage point from gdp growth in the fourth quarter. the bigger issue, which no one has written about his, how will the student loan borrowers and behavior going forward affect credit tightening? a lot of student loan borrowers who took advantage of the forbearance policy saw a bump up in their credit scores. they used that advantage to buy cars. perhaps the increased in auto delinquencies we are seeing now is marginally, indirectly

related to the credit behavior of the student loan borrowers now have to pay student loans and higher interest payments on autos. matt: thanks. coming up, citi on hedge deploy more capital in the middle east. this is bloomberg. ♪

matt: middle east has become a

prominent region for hedge funds setting up offices, looking to raise. millennium, exodus point, brevan howard, ray dalio have opened up locations in the uae, recent years. let's discuss. great to have you here. we talk about offices in the uae. it's a large region. there are many centers of wealth. where are you seeing these funds deployed? mithra: great to be here. most prominently where hedge are active in the middle east has been in dubai, abu dhabi and

qatar, doha, less active in riyadh particularly in fundraising. two aspects. one is fundraising, one is boots on the ground. nd. a prominent center has been dubai. the dubai international financial center has made a strong effort to attract firms, particularly hedge funds, private equity and venture capital. dubai is seeing growth. at the end of 2023, they will have 35 hedge funds licensed with many more applications. that is a tremendous increase in the last two years. hema: is there more money fundamentally in the middle east or access with hedge funds? mithra: middle east as a source of capital is not new.

the sovereign wealth funds have $3.7 trillion assets under management. that is second only to asian sovereign wealth funds. these have been active investors in local markets and alternatives. what's different? a confluence of three factors. one, the amount of assets continues to grow. it's doubled over the last 10 years. the number and types of investors are also newer. you have newer entrants. the second is an influx of talent in the region. the third is hedge funds setting up boots on the ground. this is all combining to make it more relevant as a region for hedge fund growth. hema: the new types of money out

of the middle east. people think of sovereign wealth. are there new potential sources? mithra: family offices and ultra high net worth individuals. the wealth has always been there. it hasn't been as relevant recently. couple factors. as the a um has grown, there is a need to diversify. capacity is in there -- isn't there. you have to look internationally. that's one change. the second is the influx of talent. last five years, hastened by covid, you saw a mass influx from london, singapore, hong kong to the middle east, particularly uae. this has been great for hedge funds hiring, but also beneficial for family offices and smaller institutions who may

have previously invested through a intermediary but now they have the talent to hire. they can invest directly. the aum of the sovereign funds continues to grow. we see newer capital coming in. matt: things were changed by covid. we have another one going on in the israeli-hamas war. is that changing the dynamic? mithra: the humanitarian side is what people are concerned about. they are monitoring closely. time will tell what people do with regards to business there. the humanitarian crisis is front and center. hema: hedge fund launches. we see sizable launches expected coming up. bobby jane is launching.

how do the investors think about emerging managers? if you are a fund looking to raise and you want to be big, do you have to look there? mithra: the middle east is relevant for hedge funds but not everybody. investors have been long-standing in infrastructure, real estate, private equity and venture. the role is a diversifier. uncoordinated strategies, focus return stream, that will be more successful than directional strategies. investors talk about capacity. they need a lot. that's critical. a fund that leaves a lot of investment and has capacity to offer will be more successful there. testing class, higher pedigree managers will do well.

it helps if you have an office on the ground, you have greater access to investors. you can build deeper relationships. attractively, managers who have offices on the ground offer investors an opportunity to reinvest capital back into the local economy. you get the international exposure. the money is getting reinvested in your economy. it's not for everybody. if you have capacity, pedigree, you should be looking there. hema: what kinds of ticket sizes? mithra: the sovereign wealth funds, hundreds of millions of dollars. family offices, smaller but meaningful. it is sticky money. when managers think about their types of investors they want, the size and duration of capital is important. it varies. matt: great having you. thank you for being here.

interesting topic. kia's american ceo stephen carter on the '24 ev ambitions. this is bloomberg. ♪

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

matt: kia broke ground on a new electric vehicle plant in south korea. it will produce 200,000 cars a year. stephen center. i wonder about the growth.

it's been so popular. the telluride was a huge piece. f of your logo allowed a consumeront to visualize the company differently and connect. what do you think? stephen: we've got enormous comments. that was a signal of change. telluride proceeded it. ev6 have redefined the brand. matt: i drove the telluride after a friend of mine said he was on a year-long waitlist to get one. in norma sleep popular. it seems to be challenging a range rover, a completely

different price class. what do you think it is? the design? the engineering? the drivability? what does the american consumer connect with? steven: all of the above. the design is the first thing you see. that attracts you. the performance of the car. the fuel economy, engine performance and the quality. won jd power quality awards the last three years in a row. the market is waking up to that. matt: i will move on to the broader business. i want to finish the telluride. the only engine choice was a 3.5 liter v6. are you going to go electric? will there be a hybrid? what's next?

steven: we call internally the ev9, which we are about to launch, you might consider it the electric telluride. the next version of the telluride specifically might surprise you in terms of the powertrain offerings. matt: you are not going to tell me? [laughter] hannah elliott, who tests vehicles for bloomberg news was impressed with the ev9. i'm guessing it's a three row ev. i've been driving the sorrento, a plug-in hybrid vehicle. i thought the powertrain was bigger. i remember thinking this can't be a two liter 4. i opened up the engine bay. it's even smaller. 1.6 liter, in-line 4.

it feels more substantial, like bigger displacement. do you think the battery allows you to get the feeling? steven: absolutely. it's a turbocharged engine. the electric boost from the integrated hybrid motor really does the job. when you consider the range extension of the plug-in hybrid version, it's a phenomenal offering. it's the best of both worlds. matt: it seems like everybody was quick to go full ev. you have those products. ev6 is astonishingly fast. i made my passenger feel sick. steven: good job. matt: looks like now the shift is back toward hybrid. then you can use the electric, date today but when you need it, you can go further without having to recharge.

steven: it's the best of both worlds. i don't think there is a shift back. i think there is a recognition, at this moment in time, the market is made up of several choices for consumers. regular gasoline. full electric. and a vehicle in between is the plug-in hybrid. you don't have to worry about charging. you can get phenomenal fuel economy with that vehicle by continually plugging in and cycling the battery between commutes and trips. it's all of the above right now. depending on your use case, there is a model for you. steven: i've got viewers writing in, asking about the ev market. a lot of questions about whether the business case is viable without so much government subsidies. not everyone gets those. your new south korean plant.

is it hard to compete with american union shops that get a $7,500 tax credit? steven: that's a long story. the inflection reduction act created disruption. we announced before that we are building the hyundai motor group factory outside savannah, georgia. that's a $10 million investment for batteries and automobiles. we are on this course anyway. we are in the middle of a $200 million investment in our west georgia factory. we can compete. those factories in korea serve many markets around the world. for the u.s., we can compete. we are going to be building new cars here.

we will design here. the public will be excited about what we bring to market. matt: i was talking the other day about cars. i think kia needs to build a halo vehicle. something just out of reach for most but will attract everybody in to the showroom. suv with 300 miles arrange. it will start at $55,000.

it speaks to what the brand can deliver. it was just named as a finalist for north america car/truck of the year. we are excited. there are big cars and small cars. the l.a. autoshow today, one is a sedan and one is an entry sized electric suv. there's a strong future, we want to be a top player in the market. we are going to continue to develop products in those segments as we have done in internal combustion. matt: ev9 will be the halo vehicle. great to have you. check out the latest updates on the luxury auto market. we talk about kia on my podcast,

cohosted with hannah elliott. it is called hot pursuit! download it. use the bloomberg business app to get those in your dashboard. coming up, dana chats about the consumer after retail earnings. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

looking to save big on holiday shopping? xfinity mobile has you covered. don't miss your chance to get a free line of our most popular unlimited plan, now through the end of the year. and during our black friday sale, you can also get up to $800 off the latest 5g phones. xfinity mobile is on america's most reliable 5g network. so no wonder millions have switched to one of the fastest growing mobile services. now's your chance to get a free line of unlimited for 1 year when you buy one unlimited line. plus, save even more with up to $800 off an eligible 5g phone. click, call or visit a store today!

>> bloomberg markets. amber. matt: i'm matt miller. let's get a check on the markets. not much going on in stocks. s&p 500 holding at 4500. investors are buying the bond pushing the senior down another nine basis points. we are looking at 4.43 on the 10 year treasury.

you see the u.s. dollar index the kleins trading at 1249 and 1250. the biggest move in my mind is oil. cratering with nymex crew down i .6% down 72 dollars and $.38 a barrel. amber: it is remarkable the s&p 500 is flat. and there's a number of big pain points when it comes to earning. palo alto and cisco under pressure because of the outlook. earnings were not so bad, but there's concerns tech companies are pulling back and companies are pulling back on their spending plan for things like cybersecurity and networking area these two are under pressure. bath and body works reporting sales declining. unlike macy's, or target, investors take a glass half-full

approach. sticking with retail, and other large-profile pain point -- large high profile pain point. that leads us to the stock of the hour read walmart it raised its forecast but it is below expectations. with signs of weakness when it comes to consumer demand. the cfo said there was a selloff in sales in the final weeks of october. it created skittishness about what the holiday season could have store for the retailers. matt: you get a mixed picture from the retailers. some of them are better at exit thing on their business plan than others. that may be part of it. there's long been a concern about the u.s. consumer as savings rates come down to zero. those savings have been depleted. credit card bills climbed to

record highs and as auto payment or miss and student loan payments resume let's bring in dana chelsea. ceo senior research officer of the chelsea advisor group. she is a go to for analyzing the retail market. thank you for coming in the studio. dana: thank you for having me. matt: what you think about the consumer? some of the bears will tell you that the consumer is bust right now. it looks horrible and they are about to default on everything and others say they are back to what a typical american consumer does with spending more than he or she makes and then use plastic. what do you think? dana: you see a slowdown in sales and paste -- pace of spending. they are looking at price it

will be a more promotional holidays than it was last year. the word you mentioned earlier is execution. that's what's making the difference right now in terms of retailers. clean inventories and managing distribution and fulfillment in watching price carefully. overall, do not forget that christmas is on a monday and we have the whole weekend for preston aiders to take advantage. even going into 2024 it's a more cautious time period for the consumer to get dollars out of their wallet. matt: target is executing well and wall street rewarded them yesterday. a look at stocks over a five-year period. they were trailing walmart but now there doing better than walmart. walmart is being punished today because the consumer knows they are just -- there is discounting

ahead and bargains are coming into their holding back and waiting price cuts. dana: yes. there's some of that. there's a little bit of an uptick. a reset is underway. we've seen some names when there is -- ralph lauren and you talk about value with tjx yesterday. what was similar between walmart and tjx is the word traffic. that is what they delivered. amber: i wonder if this is something to be super nervous about. walmart was at an all-time high yesterday. executives have been cautious and they cannot declare the all clear for the consumer. in the conference call they say things picked up in the beginning of november. it is choppy. i wonder if walmart really told

us anything new. dana: everyday what we hear from every retailer and each day is the next. each day being different -- no terms in -- nothing in terms of the stabilization of the grant. i don't think black friday will be what it was years past. i don't know about you but i'm getting early black friday deals rabbi emails area the deals are available at almost any time. do they tell you anything new? they told you the consumer maintains being very discerning about what they will buy and when they buy. and they have the opportunity to wait until the last minute. amber: execution is the key focus area. who is doing it the best? amber: tjx.

there doing a great job to bring in goods. -- they are a traffic destination. matt: you look at ozempic or the -- prescriptions. will people get less food? when i spoke to the ceo of pepsi he basically said poppycock. he does not buy it very but if you like if i get on it i will not buy as many fritos or drink as much coke. amber: it's a small percentage but it is something recognized. there will be other they will buy. guess what you need? if you lose weight you need more clothing. that is one of the off what it could look like. amber: thank you for that

perspective. that is dana tell see with chelsea group. we take a break and when we come back president joe biden is about to deliver remark at the apec ceo summit in san francisco. we take you live there as speaks. next. this is bloomberg. ♪

>> as you know i concluded several hours of meeting with president xi and it is one of the most instructive productive meetings we've had. a started meeting with him over 10 years ago.

our meetings have always been straightforward. today it builds on the groundwork that we have the last several months of the high diplomacy between our teens and we made important progress i believe. matt: this is bloomberg markets matt miller alongside with amber kim and r. that is president biden speaking in san francisco following his meeting with chinese president. he will speak get the apec summit soon. annmarie hordern joins us now. before we get to what he's going to say, what did they achieve last night? hours of meetings apparently what was founded out? anne-marie: well when you have a meeting like the one we saw last night, between president biden and xi jinping that was the

major news. and they've been working with their counterparts to make sure they have deliverables. the take away is that the relationship has been data 40 year low between beijing and washington. the fact these two met at our speaking is supposed to help set the rules of the road and engagement area president biden has been clear that what he wants is going back to a normal cadence of communication. if there is a conflict, he wants to be able to pick up the phone and speak to his counterpart. on the chinese side, it was a win for xi jinping to have all these executives in one place. and strike a dovish tone with them. and as china deals with a fragile vonnie put out a red carpet and welcome businesses act into china.

that remains to be seen but he talked about the fact that he wants to make sure he does not want china to bna hot war or cold war that should be in a hot war or cold war read -- to be in a hot war or a cold war -- he said that china remains on investable. amber: and you have a high-profile example today that everything is not ok with alibaba deciding to put all his plan to spin off the cloud business citing u.s. export controls to china. it's an awkward dance. they had to make headway in those relations while at the same time holding firm on something that is a big born in china's side -- thorn in china's side. anne-marie: they have said there

willing to engage with china economically but not if it impedes on u.s. national security interests. clearly xi would love to move the needle when it comes to tariffs or export controls but that is something the united states will not do. they don't see the environment right now as one where they can loosen and ratchet back penalties and sanctions. we have to remember we are a year out from a presidential election. president biden is getting criticized a lot by republicans that he's not to enough on china. when it comes to the major national security concerns china has, this administration was not going to budge on that. matt: thank you for joining us anne-marie currently in san francisco at the asia-pacific operation summit.

let's forget miles the director of the china center of the hudson institute. it is interesting, you've written a piece showing that your view is that the chinese use these summit in order to strengthen their image at home. it has to be a good book that the president of the united states welcomes xi and wants to get all of these deliverables from him. how has it gone down so far? miles: i believe that xi jinping is having a crisis of government. he sacked three of his ministers. and he is challenging the economy. and he looks pretty weak. he has a credibility problem.

coming to the side-by-side of the leader of the free world he looks respected and that is what they tried to deliver. but you look at the memorable moment of the summit is when biden and xi jinping walk on the lawn and talk to a reporter and a translator. obviously there are not communicating with each other. that is the summary of the summit. they talked no one listen. and they have a long list of items they announce they were going to do one was to stop the military hotline and one was -- the military hotline -- i do not think that will pick up the phone call with the way they have in the past. and mccarthy has been very vague so there's no concrete pollution.

-- solution. her biden it is not -- the fact that he did not come here to talk at all, he is playing hard to get for over here. matt: look into an all thing is huge for american voters. it's got to be 50% of what fox news shows about fentanyl. is biden going to be able to get china to stop allowing the precursors out and slowdown the flow of internal that we get of fentanyl -- of fentanyl that we get across the border? miles: that's a good question. china is very efficient. it is correct. if china has the will, it was the problem. and i think there's a lot of

comparing of financing networks. we've got to deal with this from -- with china on multiple run particularly on the fence and all issue. -- fentanyl issue. and i am aware of the national security agenda and it is on that list of concerns. amber: let's talk about taiwan because that is in issue that seems like it could we fracture. xi reiterating the desire for what he calls a peaceful reunification with taiwan. saying this is the biggest issue that could derail bilateral discussion. eddie see that playing out in the u.s. communication about that? miles: taiwan in some ways is a red herring issue in some high

levels. they always want to use the time with taiwan. you can see this yesterday but there is no joint statement. each side has their own version of the readout of the meeting. taiwan is the number one issue on both sides. on the treasury side they said we will use -- under certain conditions which is very -- an important play. china wants president biden to say emphatically the united states does not support taiwan independent book review united states that's not even an issue because there is no independent ruling there. everybody is about status quo area therefore president biden did not say specifically i think he sort of dodged the question. amber: how do you see this

evolving from here? how you see the next step now that we have made this reconnecting? miles: i think one of the reasons a few -- when we talk about it is the dinner with all the silicon valley -- with wall street and -- that is probably one of the reasons he decided to come to san francisco. the chinese economy is in trouble. investment and import and export our way down for china. they have a cautious outlook. china isn't in on investable place. they come here to wine and dine with the american investors. that's important. when you look at the other people attending the meeting, there's big names over there, but it not hundreds or even

close to 100 people. basically there's big people over there and some other prominent names not bothered to go including facebook zuckerberg did not show up which was a surprise. and there's a few very big important companies that have the investment in china already. there's apple for example. matt: and if they need monday -- money, we want pandas. we appreciate your time today. coming up cisco having its worst state in 18 months after its quarterly outlook comes in short of estimates. this is bloomberg. ♪ with the women's tennis association to remove boundaries... ( ♪♪ ) because this game is for everyone.

you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989!

anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. amber: shares of cisco the

largest maker of computer networking equipment tumble the most by a year-and-a-half after concerns that companies arrange again text depending #spending. an end joins us now. we speak to the ceo they say clients have too much inventory. we shied away from suggestions that this is about a macro economic slowdown. ian: nothing is changing are getting worse. there talking about this being a knockdown effect a long felt supply chain disruption. shifting to customers now. everything will be ok. as we see from share price reaction investors are not buying that.

matt: is it the dawn of a i to boost the need for all your bet cisco makes? ian: does what they said three months ago. this time around they said the same thing -- this time investors did not see that there concerned about what's going on with the economy. their explanation did not resonate with them. matt: thank you brief but valuable. ian king talking with us the master of chipmakers and tech things out west. were looking at a totally different industry with the cratering of the oil price. nymex crude dropping 5.3%

because we have swelling inventory and also technical factors are late. -- are at play. the other big move is the 10 year yield. this is bloomberg. ♪ hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills to compete with the future. kevin's now part of this next generation of young people who feel they can thrive. ♪ ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.

- after military service, you bring a lot backay. to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world.

scarlet: one from the studio and bloomberg headquarters i am scarlet fu. katie: i'm katie greifeld. we kick you off to the clothes. there's not too much action when we think of the start we had to the week with the s&p 500 off by .2%. the same when you look at the big ten down. the 10 year