sonali: welcome to bloomberg markets. i'm sonali basak. the s&p 500 is off of session highs of only .3%. the nasdaq is up about .2%. the two year yield. the slide of the last few days has been significant. you are looking at a two year below 466. the move the last three days has been dramatic from the height of the low about a 37 basis point move.

crude head of a key opec meeting ahead of us back above 77. the two day rise north of 6%. the latest economic data. hopes for a federal reserve pivot intensified after gdp growth climbed more than expected third-quarter. sent swaps iced in a .25 rate cut by may. isabel lee is watching the slide in yields not seem a commensurate tick higher in the market. isabelle: across rasa -- the cross asset rally is superlative with global stocks on track for the best month this year and bonds on track for the best month since 2008. powering this is the belief the fed is done with its most aggressive hiking cycle in decades. gdp data calls for a soft landing. raphael bostic of the fed

earlier said he is confident inflation will slide down. bill ackman said he thinks the fed will cut sooner than the market expects. granted, there are critics that still believe there is too much optimism. for now, really it's just all the optimism. sonali: there have been and a lot of hopefuls potentially hitting the ideal market into next year. will the market to be receptive to companies looking to go public, particularly, if they are lossmaking? isabelle: whether the market is receptive remains to be seen. remember a rise in interest rates makes equities a morse -- a more attractive source of capital for many companies. for some a rise in interest rates is good and for some it is bad. talking about ipo revival after years of sleepiness it's already something. a trader yesterday was saying hopes of a soft landing is still there. we have kim kardashian's company, reddit, a microsoft backed cloud firm.

look at various ipo indexes. it is slightly higher. still not up to its heyday, but the talk is there at least from dormancy the past two years. sonali: thank you for your time. now we bring in galaxy digital ceo mike nova gratz. we will talk about the markets. you have seen a slight downward in yields. do you believe in the pivot the market believes in next year? mike: i do believe the economy is slowing. i think the economy will slow a lot in the first quarter. the fed will be cutting rates. who knows exactly when but end of the first quarter beginning of the second quarter. when you have a shift from the tightening to the cutting mindset you don't know if they will cut 50, 25, a hundred if things look bad --. if inflation settles at 2% real rates are too high. so the uncertainty around the

bullishness of the fed -- the dovishness of the fed and the bullishness for market will create spirits the same way bearishness did. the yield curve still negatively sloped, 230, i think -20 goes to plus 60, plus 80, plus 100. so some of the trading trends are just started weed the dollar had been the dominant currency for a long time to read all of a sudden that will sell off. it feels like it could be the beginning of a big trend shifts. sonali: animal spirits is a funny thing to hear you talk about again. there was a sense the fed, once it got off quantitative easing and started hiking rates again, animal spirits were yesterday. you think they will come back really? mike: listen when you are putting liquidity into the system, leverage gets easier to get. people get excited. so, i was not talking about

animal spirits in the currency or fixed income market. equities will be more challenging. i think there are two stories. if the economy slows, what that does to earnings versus lowering rates and allowing money to flow. so, i am less convicted on the equity call. but, more convicted on rates and currency. sonali: let's talk about rates and currency. i will make you put on your macro hat before getting to bitcoin. what are you trading in terms of currencies and along the yield curve? mike: i went from a long dollar bias to a short dollar bias. being long the euro, the aussie dollar, still long some brazilian currency. i knew i was a short in chinese currency. i think their problems are more structural than they have addressed so far. but broadly, a net short dollar position.

and, interest rates along two years, five years, and it two years. the idea that the fed will cut rates then start a cutting cycle. as the economy slows and inflation trickles down to 2%. sonali: even in an animal spirits environment what would you not by? do you think things can get too frothy again? mike: already you have like five rate cuts priced in to the fixed income market. so, markets move quick. you said this is one of the biggest weeks -- or, biggest months in fixed income rallying. nothing will go in a straight line. things will go up, retrace, go up, retrace. i don't see anything flashing triple read right now. we have to be nervous. the twins are just starting. one mistake a lot of investors make is a trend starts and you get your first move like, that was a great prophet. i have to get out. then it keeps going and going.

gold looks great. if gold closes above the 2000 mark for a few days or weeks you could see gold much higher in the future. silver feels like it is being squeezed. it could go much higher. and bitcoin. gold, silver, bitcoin. they should all do well if the fed has finished hiking rates and is starting to cut. sonali: what about the magnificent seven? you started her talk about lack of conviction in the equity call relative to the macro movers. given how much the magnificent seven has driven up the market, you have conviction there? mike: i do not think nvidia and microsoft, to think of those as the two stocks that best encompass ai, are finished. those things, grateful markets, great bubbles and manias. we will have a mania in ai. that will usually end with

something more spectacular than what we have seen. my traders bias is those stocks can go higher and probably drag the magnificent 7-up. things are very expensive. for me, it's easier to not have big positions there and be a small trader and if it watch her. but -- a big watcher. because i see so much opportunity elsewhere. sonali: you are a big bitcoin trader. you think there is more opportunity in ai? do you ever wake up some days and say maybe galaxy should be an ai company? mike: if i wasn't smart enough to understand how ai worked maybe. sometimes you pick your bet a few years in advance and then you are stuck. there is some convergence of ai and crypto at one point. we followed pretty closely. the ai thing is difficult. the economies of scale you needed to be a player in it are

so large that you will have a couple giant winners. i don't think there will be a lot of second places. you can see the amount of capital needed to raising for new companies. i do not think it was easy for a lot of pivot into ai. using ai, figuring out how ai impacts your industry, that's really important. but to build an ai company is probably beyond my skill set. sonali: we will talk about your skill set next. we will talk more about bitcoin. it just dipped below $38,000. we will see if it gets past that through the end of the year. mike, hang tight. this is bloomberg. (adventurous music) ♪

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richard: we did make some steaks along the way. we acknowledged those. it was important for us as a financial institution to do so and we continue to build on that journey. sonali: that was some of berg's interview with the new binance ceo following the company settlement with the department of justice. i am back with the galaxy digital ceo mike novogratz one of the biggest investors in the crypto space free to think about the settlement at finance, the more than $4 billion settlement. the more than admissions of guilt and scathing allegations including aiding of money-laundering and working with sanctioned nations in certain cases. how do you think about what exchanges you are working with those kinds of financial and regulatory risks tied to them? mike: we have a thorough process looking at who we deal with and we are also reasonable.

if you went through the list of trade five banks that have been sanctioned or fined by different regulators in the last 20 four months, not 20 years, 24 months. that is a shocking list. you are not looking for zero mistakes. otherwise there would be no one to deal with. we are looking for people that take their job responsibly. i think the binance settlement was great for their company and industry. i wish richard well. i think they already risked in a lot of ways. people who were worried about dealing with finance have less to worry about now. sonali: do trade with them, keep the same amount of exposure with them, or diversify more? mike: we have always been diversified and we trade with most people. all else equal, you should feel more comfortable dealing with finance now that they have settled. there wasn't a story they would be shut down or they were

stealing people's money. it came down to, they had some pretty serious violations of ky see protocol. they have work to correct that and they paid their find and they are moving on. i think it's net positive for their company and our industry. sonali: you still have legal questions around the industry with joe quan about to face trial and the ftx trial ending. free has other trials. you had the binance settlement. how do you have a faith these bad behaviors have not been --have been washed out of the industry? like: -- mike: the 2022 crash committee amount of bad actors that got swept out of the industry was pretty significant. so, i would say that my intuition is most of the bad actors are off the stage. markets are pretty efficient and regulators are pretty efficient. they have gone after three arrows, celsius.

plenty of others. there will be a few more, i am sure, because they are always are. but the industry got delivered and i think chased out many bad actors. it feels like a cleaner slate. sonali: bitcoin for its part has rallied to just above 30 eight thousand and has been flirting with that price now. where do you think it ends the year or next year, rather, at this pace? mike: there are a bunch of good things happening for bitcoin. we will get an etf. right now there is a lot of anticipation. some of that is built into the prize. when you actually get the etf announcement there are probably two months before it starts trading. once it starts trading, we will see is blackrock and ourselves with invesco, art, and the other institutions, fidelity, have their sales forces out convincing people to adopt bitcoin. the price will be significant a

higher. especially at a time when the fed is probably cutting rates. could we go to old highs by this time next year? of course. will we go higher? we will see. remember prices are set on the margin and there are not that many sellers of bitcoin. next year, the daily supply or inflation rate gets cut in half. you are really setting up for a wonderful story. we are also going to any election year. that uncertainty should help bitcoin. and, the factor that the u.s. and europe and japan still cannot come close to fiscally being responsible is why people got invested in bitcoin in the first place. sonali: i am glad you brought up politics very when you think about who you support, does crypto play a role in all? who are you supporting and for what reasons? mike: i am in the anything but

crazy or really old party. so, i really believe we need to move away from moon baby boomer generation having run our country into the ground. i pledge that i would not vote for anybody over 70 five years old. or even, 72 years old. listen. from chris christie to nikki haley to neil phillips, all of them might take over the two most likely candidates we will get. so, to get us to move on generation yearly and away from crazy. sonali: jamie dimon this morning said even if you are a very liberal democrat i urge you to help nikki haley too. how much are you getting those kinds of calls from your friends? mike: i got a text from a dear friend of mine this morning asking me if i would sit down and meet with her. would you help?

i met neil phillips in the awful --office last week. i had never met him before. i did not really know his story. it is an amazing story. he has an amazingly rational guy preeti does not have the name recognition nikki haley doesn't this point but is the only non-biden candidate on the democrat side. i will spend more time with him. it's not really democrat or a publican at this point for the country. it is that we need to move beyond where we are. the thought of a trump presidency is so divisive. for republicans, biden feels that way. i might disagree with them, but he feels that way. to me what is best for the country is to move on and get something different. the odds of that happening are still pretty small. but, i think the payoff, if it happens, is pretty good for the country. sonali: speaking of odds, would you support or urge a mark cuban presidency given all the

speculation around his next move after the mavericks? mike: i love mark cuban. he is a kind man. he is a smart man. i spent some time with him. i podcasted him. if he throws his hat in the ring i will certainly have dinner with him. sonali: when you think about next year, but will be thening t the end of the day? when you and your peers are putting money towards canada's, what exactly are you looking for? mike: i do not think my fears money or my money will make much of a difference. the world has shifted so much with elections, social media. donald trump other than his legal defense gets publicity just because he is donald trump. i think we will see something feels to me as if it has to break. i'm not sure what it is yet. people wake up one day and say no. the most likely outcome is we go to the polls and it is trump

versus biden. and you go to bed praying that you will not know who wins until you wake up. sonali: when we go back to bitcoin, the market is watching closely. you have been looking at the etf space. when you talk to investors, these early conversations, how much interest do you expect in an etf upon arrival? how soon do you expect the fec to approve that process? mike: listen, the timing is a little bit of an art not a science. it doesn't feel like it should happen soon. what does soon mean? after he gets that she gets approved there is probably six-eight weeks before the mechanisms are up so you can get money in. then i think of to $10 million per year should flow into the etf space if not more, a lot for

a market as small as bitcoin. again prices are set on the margin, so that's all new money. we will see a pretty successful shift of psychology when the government and institutions --the government says you are allowed to buy bitcoin. institutions say this is great. then that allows institutions to look at what else is out there. i think it will be a seminal event. sonali: we look forward to what happens next. that is the galaxy digital ceo mike novogratz. i had, the kkr co-ceo on their $2.7 billion acquisition of global atlantic. this is bloomberg.

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sonali: it's time for the wall street beat. the kkr co-ceo scott nettle says

private equity is still a growth business despite becoming a smaller part of their assets under management. he spoke exclusively on bloomberg surveillance. >> private equity isn't both business. we expect to grow that part of kkr for a long time both with wrapped to the flagship strategies and different growth strategies. the core private equity business is now a $30 billion franchise for us. this is not about or. it is about and. we see the ability to grow pe and all other parts of kkr. sonali: we are joined by bloomberg's allison mcnealy that wrote the story. you follow kkr closely. this happened after apollo also bought their own insurance company. is this a game of copycat or the direction of travel for the industry? allison: maybe both. it is definitely the direction of travel for the industry. we have seen a deal's love over the past year now since interest rates went higher and people got a little nervous about the

economy. so, they private equity firms, or alternative asset managers as they would prefer you call them, have diversified beyond their traditional by out space buying insurance companies try to get more into private credit looking for more ways to create value for shareholders outside of buying and selling companies. sonali: apollo bought their insurance company first but kkr started their capital markets business first. that insurance company is now being used to finance deals. how much is that a competitive threat given how much direct lending we have seen that has competed with leveraged finance so far? allison: it is certainly a threat in that we are undergoing potentially a broader change of the industry in how companies borrow money to finance deals. given that banks have had to pool back so much from leveraged loans and lending to companies. that really creates an opportunity for firms like kkr, that already have an established

capital markets franchise to do lending. now that they have additional firepower from the global atlantic acquisition they have even more money they can potentially put to work. sonali: why is it significant for kkr to do this? allison: it helps them boost earnings. they expect to see key earnings metrics increased by 10 percent-20% next year creating value for shareholders showing how they are broadening their business and the future growth opportunities beyond private equity. sonali: the adelson family and a dumont family agreed to by the majority ownership of the dallas mavericks. the deal is subject to approval by the nba board. a very strict nba approval project. the adelson family is now in charge of the path forward for the mavericks. mark cuban will be loosely still involved. sports is a hot topic in the deals world these days.

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>> welcome to "bloomberg markets." sonali: we are looking at green on the screen on the back of strong economic data. the s&p 500 up about .3%. and they yield slide continues on today with a 10 year yield down another four basis points. the dollar come up a little bit on the day and prude also a second day of gains into the critical opec meeting. you are watching it above the $77 handle here.

over two days, up nearly 7%. john: as for individual movers, let's start with a couple that are higher, general motors, a 10% lift, as the company commits a huge amount of cash to investors at a time when there are big questions especially with the ev push. we also have crowd structures rally in a similar amount today -- crowdstrike shares rally and a similar amount today. those names are higher. names that have been challenged today would include hormel. for the food company, at a time when there is more cautiousness from consumers. that seemed to be reflected. the shares are off about 5.5%. where -- we are continuing to say today witness in the las vegas sands. adelson selling around

$2 billion worth of stock for the dallas with mark cuban selling his beloved mavericks. sonali: we will discuss that deal with bloomberg's chris palmeri on the phone. i did message mark cuban and asked him if he will talk more about it and he said, can't, anything will have to come from the adelsons. that tells you how much control they have over this, but what are they want control of the mavericks overall? >> well, we are told that this began with discussion that the adelson management had with cuban a couple of years ago now about building a new arena for the mavericks. that would also include a casino. he's been trying for years to get texas to legalize casino gambling. it didn't work in the legislature this year. they will still have to wait

because they need another two years to even try again. it's a longshot shot. but they have not given up. this potentially would be an anchor tenant in the mega resort they would build. jon: ultimately when it comes to the value of teams, certainly you've covered the value of media assets over the years, assuming the mba is on board with the transaction -- nba is on board with that transaction like this one, what does it say about the value of sport franchises in 2023? >> considering cuban bought this for 200 million dollars and change and the valuation now is about $3.5 billion, these things are just really good investments. particularly if you're a billionaire and you can invest in anything. the adelson's have a fortune of some $30 billion. a lot of money. this seems almost like a bank account investment for them long-term. sonali: long-term, are investors

more excited about the grand plan when it comes to their role in dallas or do they have any questions about how they pay a from some of their persistent holdings? >> they have already sold their flagship resort in las vegas. they had talks with the owner about building in queens, hard rock has that deal. but they are still pursuing a casino license in new york and long island. at the coliseum site. the company aims to really -- for really big projects. they don't want to be like caesar's and have a casino in every town. these projects take years to develop. you can see why wall street may be a little disappointed that it will take so long. jon: great to have you with us on this developing story chris palmeri,, joining us from the entertainment and sports team,

covering that mavericks deal. from sports seals, we are watching reports of deals and other sectors. in the health care sector, the wall street journal reporting cigna and humana are in talks to combine in what could be a $140 billion company. let's bring in john t., in theory, this would be quite a powerhouse within an already consolidated industry. >> yeah. it is certainly a big deal and it's an industry where big deals have been bought before. if you go back to the last part of the 2010's, cigna tried to merge with anthem, humana previously tried to merge with aetna. there was a sense at that point that horizontal combinations in the health insurance industry

had topped out -- that there was not room for anymore mega deals. and i think this one will have scrutiny of it goes forward. sonali: in prior administrations, he perhaps did not see the same kind of fervor, the doj has gone after big deals. what would these two companies have on their side to get the job done? >> the one thing that might sort of appease some of the antitrust concerns here is that they are largely in different -- indifferent segments of the health industry, humana is almost entirely focused on medicare advantage plans, those are plans sold to primarily senior citizens in the u.s., it is a lucrative, fast-growing business for most insurers. humana is a pure play medicare advantage company. they are building other health

care services. they are a provider as well. cigna on the other hand is -- there are also in medicare advantage but it is not their primary business, they are focused on traditional employer, commercial insurance, and pharmacy benefits management. they purchased express scripts several years ago. they could make the case that they are in complementary and not necessarily overlapping businesses. but there are places certainly where they do overlap. and i am sure there would be [indiscernible] if something like this were to go forward. sonali: he reported cigna -- sonali: you reported cigna is taking a page from mark cuban's playbook, making drugs cheaper. coming up next, certainly an interesting deal. shares of dollar tree or higher after a week or -- are higher

after a weaker than expected performance in the third quarter. more on that next. this is bloomberg. ♪

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trying to give a better life to people that don't have the means to do it. si mi papá estuviera vivo, sé que él tuviera orgulloso también de vivir de esta viviendo una vida como la que estamos viviendo ahora. es electricidad aquí es salud. jon: this is bloomberg markets. time for our stock of the hour segment. we are keeping tabs on the consumer through earnings stories. we are watching shares of dollar tree, they are higher today although the company is seeing some slow down activity within its family tree expansion. there are some profit challenges. the ceo saying they may need to shrink the family dollar footprint overall. the market, making sense of all of that. when you look at the trends, while you would think of dollar

tree has a place were lower income consumers would go to do their shopping, the reality is when you look at some of the trends right now, higher income shoppers are doing some activity at dollar tree. lower income shoppers are feeling quite pinched right now and that is also being reflected in the state of affairs of their business. sonali: we will discuss this now more with rodney williams at solo funds. if you had to expend was going on with the dynamic around dollar tree, was going on? >> electrodynamic is that cash-strapped americans' income measure is not a true reflection of their current situation. the current reality as more americans than ever before have limited savings and limited cash and options like dollar tree, the particular per price item, are at a much more affordable price for them to stomach on a week by week basis. this is something that is an

interesting dynamic that i don't think we have ever seen. we also saw this in our recent report that we did this year with the global block economic forum. -- black economic forum. we some more americans with six figures than ever before having less savings and needing additional means and additional options especially for shopping. jon: rodney, with respect to your own research, when it comes to the decisions, the tough decisions on spending that americans have to make right now, what did you find, where does the money ultimately go? >> the money goes to the true necessities that they need to kind of make the we go by -- the week go by. put yourself in a cash-strapped situation. this is a consumer that after their weekly or biweekly pay, they are paying for utilities and rent, they then have to put food on the table, they then need necessities for child care and things like pampers and

medical supplies but also food. historically, this consumer could go to a grocery store and have an average ticket of $300- $400 to buy groceries for a family. because they are cash strapped, that average purchase availability is now much less. that means they are looking for options to buy the same goods at less cost or less ticket costs. dollar tree offers that option. what is a challenge or concern though is that the dollar tree model is actually based on less goods. technically it is a higher price per ticket. take diapers, if you go to amazon or walmart, the price per diaper is cheaper than at dollar tree, but what makes it affordable is there are less diapers in the back. the ticket size can be much cheaper. but this is a challenge. that means consumers are paying

more for less, and that is a challenge for me. jon: rodney, real quickly, obviously people have to look to things like credit cards, if there are bigger questions around where the money is coming from, borrowing costs are higher right now, what does that mean for things like the fees people ultimately are paying up? >> that is the biggest challenge. 80% of these cash-strapped americans resort to subprime credit cards, which are a very expensive option as it relates to leveraging it for everyday needs for emergency needs. but that's the reality. the reality is these options are in demand today, higher than they have ever been, despite the fact that the credit market is not necessarily running to other options. sonali: we have to leave it there. sorry. we've got to head to some breaking news.

thank you so much for your time. breaking news from cleveland's fed, loretta mester, she says the policy is in a good place to assess incoming data, it is a signal she sees the central bank holding at its next meeting, and bloomberg's michael joins us now for more. -- michael mckee joins us now for more. >> she basically said the same things a couple of weeks ago but the context is everything here, because we've seen a number of fed officials as they get close to the blackout period staking out their positions and she just reminds everyone that perhaps the most hawkish of all of the open market committee members now think that perhaps they can wait in december and see what happens with the economy. she has said before that there has been discernible progress on inflation and a broad tightening of financial conditions. the fed has to be nimble. but they are as you said in

a good place to evaluate what happens with the incoming data. jon: what do you think when it comes to the fed officials right now is going to their heads with any fresh -- with the fresh comments when they can see what is going on and the market reaction to the commentary from governor waller for example earlier this week, when mester's keeping that possibility for rates rising in the future still on the table? >> you have to put it i guess, as sonali said, reading between the lines, they are basically telling the markets they think they are done. they have open the possibility of raising rates further if inflation starts to go back up, but right now the forecast for the pce inflation report tomorrow and the cpi next week -- the week after next week rather is it is going to continue to fall, so right now they are signaling they are done and the markets are taking that as a sign that read cuts are coming, the fed may have to push

back on that sometime after the next meeting. sonali: let's be more specific on the comments, she said they are in a good place, well calibrated to ensure that inflation is on a timely track back to 2%. how will the market take a note like that? >> they will take it up initially because she has been the biggest hawk. now she is saying wait and see what happens with the data that comes in. we don't have to raise rates now. tom market earlier today from richmond said the fed could wait and see what happens if inflation comes down great but leave on the table the idea of a rate increase of it doesn't. jon: just a quick reminder to our audience, you talked a little bit about mester's policy leanings and a vocal supporter of boosting interest rates over the past couple of years, she is due to step down as the president of the cleveland fed heading into next year? >> she will be stepping down in june of next year, she reaches the mandatory retirement age the cleveland fed has a search on

for a new president. they said that you are welcome to apply if you would like. just a little note. i'm serious -- they actually did say that, anybody is welcome to apply if you send them a note. we don't know what kind of person they will get to replace her with. if they will be as hawkish as she is. but it'll be an interesting process to follow. we also have the st. louis fed open still. jon: mike mckee, our economics correspondent, perhaps future cleveland fed president as well, we shall see. [laughter] we will take a quick break. we have been tracking hedge funds this year, and with one fund in particular, some huge gains, putting on emerging markets. we will get more details on that story, next. this is bloomberg. ♪

sonali: startup hedge fund shiprock capital is turning heads after winning big bay betting on some of the world's riskiest countries. they have been up 26% on the year end by comparison most hedge funds have barely been up to percent on the year. so big a performance. -- 2% on the year. so big up performance. that 26% looks eye-popping but you have to wonder how they have earned that given there have been so much -- has been so much distress in emerging markets. >> we've got to understand, what's the context coming into

this year? a lot of these countries are coming out of the covid pandemic into a very high interest rate environment. also with inflation hiking up due to the russian invasion of ukraine, it is a lot of countries that have fallen into the distressed territory. this fund, the way that they are making so much outperformance is because they focus on these distressed countries and on some of the near-term catalysts. some countries like pakistan got a big debt relief from the international monetary fund and that has boosted confidence from investors and also sri lanka is making some headways in restructuring, too. it is these small incremental steps they are focusing on inside of the fundamental values. sonali: how much do some of those benefits start to continue on in emerging-markets? normally when you hear distress, people get a bit afraid to dive in. >> mr. actually actually it's been a really good year for distressed countries.

some of the top 10 performers in emerging-market debt have been distressed countries. yes, there are still risks as to how well will the restructuring go, or if there's actually an end in sight. but we have seen el salvador for example having 104% of return this year and some say that it might keep going. jon: i guess you have to have to a certain degree the stomach for risk, if as a hedge fund you will be looking at these opportunities, if in distressed situations, the risk of default is always perhaps in the door next door. >> correct. for example, this year argentina had its election and in a letter that shiprock sent to clients, they admitted they have made some losses in argentina bets in october.

it's true that when you have this kind of strategy in distressed countries you have to look closely on some of the election bets and how the restructuring is going. it is a very risky strategy but apparently it has rewarded them really well this year. jon: in terms of some of the themes you are hearing about heading into next year as well, how much is the performance of the u.s. dollar gaining traction within the emerging-market circles? we've been watching what's been happening with gold recently, even here in canada, the currency strengthening against the greenback. how is a weaker u.s. dollar going to play into the story of emerging-market performance more broadly speaking? >> that's interesting because we have been hearing a lot lately of how a weaker dollar can help lift emerging-market assets. that is in both bonds and

equities. we've talked to some investors who say that for a. of time next year, they expect emerging-market assets to outperform developed markets because of that dollar dynamic, the dollar coming off from the peak and also sentiments lifting for emerging markets because the fed is likely to pause or start cutting rates. also some investors even mentioned the higher-quality emerging-market credits are having a better credit quality than some of the developed world credits. jon: really interesting context as we get ready for the new year of emerging-market performance, after highlighting some of the big performers so far in 2023. as for the performance of the markets, we've been talking about the mester headlines, the tone recently has been a market that is increasingly betting on the idea of rate cuts. the s&p 500, still holding some intraday gains, remaining on pace for its best month performance this year going back

to arguably the summer of last year in terms of monthly gains. for sonali basak, i'm jon erlichman. this is bloomberg. ♪ the chase ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you. oh, genius! for more breakthroughs like that- i need a breakthrough card. like ours! with 2.5% cash back on purchases of $5,000 or more. plus unlimited 2% cash back on all other purchases. and with greater spending potential, sam can keep making smart ideas- a brilliant reality! the ink business premier card from chase for business. make(car engine revs)ours. (engine accelerating)

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romaine: bond investors have something to say even if the fed doesn't want to hear it. i'm romaine bostick katie: i'm katie greifeld. we are kicking off to the closing bell in the u.s.. it's another quiet day on the equity market though we are looking at some gains on -- i believe it's wednesday. the s&p 500, up by .2%. a similar story for big tech. the nasdaq 100 also up by about .2%. pretty small moves. you take a look at the bond market, and you can