sonali: bill good start of the quick check of markets. it's a down day on the s&p 500. we are near session highs and still down within 1/10 of 1%. if this holds for the week we will break a winning streak of four weeks for the s&p 500. nasdaq 100 now down more than 7/10 of 1%. we are looking at oil markets today. we are watching crude down below $77. down nearly 2% on the heels of the opec-plus meeting that we will talk about later in this hour. we will talk about natural gas

futures. guess what? the weather is still warm. the latest run of economic data. when you look at pce in particular you see that cooling inflation trend but a number that remains above the fed's 2% target. all three gauges, headline, core, super court are at 3% or higher year-over-year. mike mckee joints in you now to talk about it. you are seeing a movie in yields higher once again, snapping the bid in the bond market a little bit. back above 470 on the two-year. what is economic data tell us the fed is not? michael: i don't think the markets are reflecting the data. it is ratifying with the market has been saying the last couple of days since chris waller came out and suggested maybe we will be talking about the idea of rate cuts. the jobless claims numbers, while up a little bit are not suggesting any kind of fall off

a cliff in employment. we have the report a week from tomorrow and we will see what happens. we are seeing a large number of people who are getting benefits taking longer to get jobs, which is what should happen as the economy slows down. incomes slowed down. wages grew .1% after 11 months of growing .5% or so. spending slowed down a little bit. still hanging in there. all this tells you that the story the fed has been telling is actually happening at this point. sonali: if the data is consistent with a soft landing narrative what of the upcoming data can fill that narrative of course? michael: we will see what happens with the ism numbers but we may get a bounce tomorrow. they should reflect the return of workers from the uaw strikes. we may see a little bit of a pop in terms of the ism manufacturing index and new

orders. whether we see an increase in the employment will be interesting. those people will go back to work but they had been at work. does this mean they will be hiring more people or not/ the beige book says maybe companies are starting to let people go. next week we get adp. we get jobless claims again. we look forward to the big payroll report on friday. sonali: mike mckee, thanks very much. we will watch that closely with you. on the price pressure front let's look at oil. today's opec-plus agreed to make one million barrels a day of additional oil supply cuts. joining you now is ellen wald, senior fellow at the atlantic council. of today's meeting, if anything surprised you what would that be? ellen: that these cuts were not announced in the official communique. they are being described as being voluntary cuts in each country that is making these cuts is announcing how much they are going to cut on their own.

i think the market is really viewing this with a bit of trepidation, there is no mechanism for enforcement. this is different countries saying they are going to decrease production by a certain amount during the first quarter of next year. other than saudi arabia, which has already implanted is one million barrel a day cut, these new cuts are supposed to add another million barrels a day of cuts on top of saudi arabia's cuts. there is no sense or confidence that this is all going to add up and actually remove oil from the market. sonali: speak more to that. you are seeing oil near the session lows of the day. it broke back below $77 and flirting with $77 now. what will cause more downward price pressure if we look to the future and how opec-plus is commune getting with each other? ellen: it's a bit confusing. opec+ has been talking about

demand for next year in positive ways but they are trying to organize this extra cut. it sends a confusing message to the market. are they positive about to be -- about next year or not? you have u.s. production which has grown. u.s. production alone grew 200,000 barrels per day in the month of september. that is larger than any single cut by any single opec country except for saudi arabia and maybe russia. with a producer like the u.s. out there it is questionable how much impact opec+ can have on the market. sonali: you think about the disputes coming into the meeting in the first place, the delay of the meeting. is the fear in your mind that opec+ cooperation can break? ellen: i don't think there is a concern about that. we got news that brazil is going

to join the opec+ group. brazil is an up-and-coming producer. they are over the 2 million barrel a day mark and adding production capacity all the time. the curious thing is that brazil is in a growth phase for its oil industry. if it's going to joining opec+ group the presumption would be it would have to make cuts. generally, all opec+ members are asked to make a certain percentage of cuts. the news is that brazil is not going to be making any cuts. at least for the time being. apparently, they see value in joining the opec+ group. there was a meeting between the brazilian president who went to riyadh and met with mohammad bin salman. there is a sense this is more of an economic opportunity and an opportunity to build economic ties, particularly in the energy sphere. that says to me that the opec+

group is alive and kicking even if it cannot impact prices as much as it hopes right now. sonali: an interesting dynamic between crown prince and the brazilian president. what would start causing brazil to start cutting? ellen: there could be a couple of reasons why they might want to cut. once you go through a growth phase, you may want to cut or scaled back on production and invest in infrastructure to prevent may be any kind of field collapse. that could be a reason why they might want to cut. they could be doing it just to join the group. it will be -- i don't think that opec+ will start pressuring brazil to cut immediately. i don't see that as an issue but i think they are looking to expand their group. you have so much production going on in the non-opec world that it makes it difficult for opec to impact prices. i think the announcement is kind

of -- the reaction to the announcement of these voluntary cuts is muted. once these cuts start happening in january, if they start happening, we should see the market -- which should see an impact on the market. we should see prices rise assuming we are not seeing a drop in demand. sonali: how much of a wildcard is russia? ellen: russia is a huge wildcard. it's interesting. they announced that for now they are holding 300,000 barrels a day of crude oil exports off the market. they are producing the oil but they are keeping it at home. now they have offered to cut another 200,000 barrels a day but not crude. they will cut petroleum product exports. this is all kind of shady and hazy and when you combine that with the fact there is this g-7 price cap that is not well enforced -- it's totally possible to buy russian oil on the black market for more than the price cap is set at and have

nothing happen to you. the fact that russian oil has been pushed into this black market area, even perhaps it frees russia to do more and act more independently in terms of oil policy. sonali: atlantic council's ellen wald, we thank you for your time. coming up next, an interview with don mullen whose company is one of the largest private owners of single-family homes and rentals in the united states. that's coming up next. this is bloomberg. ♪ ♪

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sonali: bringing you breaking news on openai. they are sticking with a plan to let employees sell shares the company through what is known as a tender offer in its giving participants an extra month to decide on whether to take part. openai has still been in talks to sell those shares in a deal that would value it at $86 billion. that was in question quite a bit as there were concerns about management changes via letting go and rehiring of sam altman at the top of the ship. turning from open add to the real estate market, we will speak now with don mullen who spent decades running credit businesses at bear stearns and goldman sachs before leaving in 2012 to found the firm that expanded rapidly to become a more than $50 billion asset manager. now one of the country's largest private owners of single-family homes and rentals. he joins us on the future of the real estate market in an

interview. don, on this program we heard people call this multiple times a housing crisis. it is not the same type of housing crisis as we saw in 2008, the time you are very familiar with from you, goldman. don: we have gone from eight a time where we had liberal lending standards and excess supply of housing stock. today we have been suffering under the challenges of less housing stock relative to the number of people seeking to live in the single-family home. that is the product of longevity. baby boomers are once again staying in their homes longer, choosing not to move out, producing the available housing stock. two, a lack of construction in the last decade. then of course the demographic wave of millennials becoming household formation years. estimates are between four and 7 million homes that were short as a country. if you look about the western world generally, australia, united states and the u.k. are

all suffering the same challenges. we would be best to think more broadly about public policy here about how to solve this challenge. sonali: you have an inventory problem and a rates problem here. if you had to tell an average american how soon it is before you can find a home at a normal price, how soon would that be? don: normal is an interesting definition as we go into the latter part of next year. our expectations for rates, which is implicit, is it will get down to normalized mortgage rates, meaning the volatility embedded in securitization and mortgage rates should be reduced by the second quarter of 2024. we should see an effective rate cut to mortgages even if the fed does not act. i would say that home prices will not come down. they will stay flat or going up. regionally it will make it big difference because there's been a terminus amount of income transfer from one community to another. we all think about money going from new york to miami it's also

more importantly as a case study from l.a. to phoenix. we see home prices are less affordable for people who live there pre-covid. but today the incomes of the new residents are much higher than the ones that lived there before. sonali: talk about the dynamics with the broader rate environment. how quickly do mortgage rates come down if the fed starts cutting? don: we will be in a position we will see -- we have two vectors that are driving mortgage rates. the absolute level of the fed and mortgage spreads. the fed is in a position where it is liquidating its balance sheet and that's causing that mortgage-backed securities to be a wider spread levels. we need to have both factors. you by cutting rates would see a reduction in the absolute index and a decline in mortgage or rate vol, but not necessarily the rates tighten.

i expect we will see bloomberg mortgage rates in the second half of next year beginning in the second quarter. sonali: you talked about home prices. there's a dynamic in the market that is baffling to a lot of investors and baffling to the fed. medium new home prices were plummeting but existing had risen to a new record high. how do you make sense of what's going on there? don: the reason assisting home prices have not budged effectively and crept up in many cases is the fact that almost 75% of americans have a mortgage below 4%. that is a unique attribute to the developed countries i mentioned. most don't have fannie or freddie to help create a 30-year fixed-rate mortgage. those countries are much more at risk of default. we are in a position that inventory is removed from the market for people who would normally sell in the few buyers who qualify are pushing a price -- up prices because we destroyed supply.

the fed seeks to destroy demand. we destroyed the supply this time. sonali: talk about your plans. you have been an inquisitive company in the last two years. in the last couple of months he struck a $1.5 billion rental home deal with d.r. horton. or the acquisition ambitions you have when it comes to buying new homes? don: you should think of us as the residential ecosystem. we are in corporate credit and structured credit. we believe we have the largest residential ecosystem. what i mean is we originate mortgages, lend money to homebuilders, lend money to fix and flip people, we invest in real estate, both land as well as single-family homes. our biggest business is single-family homes. our expectation remains that homebuilders will look to hedge their risk like d.r. horton did by continuing to have an ongoing active relationship with us. we have the largest amount of available capital to help them stabilize their inventory. we like to think of homebuilders as great partners where we can

find value both for them and us to continue to help the expansion of the housing market. we still need those houses. 70% of people who are renting an asset in america would prefer to rent a single family home. because of that we have unchecked demand but home builders have huge volatility in inventory risk. they look to us to help facilitate moving assets into the rental market. sonali: what does this mean and turn of tens of thousands of houses that you could buy over time in the next year? how fast can you be buying? don: we see in any given month between 10000 and 30,000 houses that would fit our model. we are very judicious about pricing on behalf of our investors. it is quite logical to assume we could buy anywhere between 5000 and 10,000 houses next year. sonali: the other part of this is not about the house as you are buying but you were talking about private capital. the regional banking system, the struggles it has been under,

what has that meant in terms of an opportunity for you to step in? is there a sense that the cost of capital can still get meaningfully higher simply due to the lack of capital, let alone the changes in rates? don: the regional banking crisis that affected the economy in the first quarter, we do believe that is the end of shrinking of the footprint of regional banks overall in the housing business. this'll be an ongoing event years in the making. we will see the risk they have the land development, home construction, homebuilders decline very significantly over the course of the next several years. that capital which we believe as much as $300 billion worth of debt will be shifting out of banks and into the private sector similar to what happened to private credit and corporate credit. we expect to see not just ourselves with many other managers develop platforms to facilitate the lending to homebuilders and development companies to make up for with the banks were previously doing.

i think that is a good reduction in systemic risk for the economy. banks are more leveraged than we are in that space. when banks have problems they obviously affect the depositors. we have long-term liabilities against long-term assets. it is a more stable outcome for the economy. sonali: you did this thing recently and hired the former coo of morgan stanley to be one of your top executives. he was rumored to be a candidate over at morgan stanley for its ceo spot. there is the idea you could be making requisitions to diversify. what are you looking to potentially buy and how big of an acquisition can you do? don: there is acquisitions and then there's mergers of equals. size can vary quite a bit. our view is our clients are looking for the opportunity to have strategic partnerships. that requires us to have a multitude of products that they can invest in so they can reduce their fees and we can offer

flexibility and capitalize on opportunities in different markets. i just came back from australia for the purpose of looking at their housing market and determine whether or not we want to make an acquisition there in the real estate sector for single-family and multifamily homes in australia. i go back to john before we finish and say he's a great addition to our firm. we are very lucky to be able to hire someone of such caliber. having been the cfo and on the list for morgan stanley, i think it speaks to the success of the firm over time that a person of such amazing caliber joins us. sonali: don mullen on the hunt. thank you for your time. november has been a month for the record books for bond traders. we will give you details on that move up next. this is bloomberg. ♪

a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here

would be an emblem of what small communities can achieve. 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.

sonali: this is "bloomberg markets." we will talk about the bond market. can a euro little has gone right, november is a blockbuster month. one for the record books. treasury is having the best month since the 1980's. that is not the only asset class. we will discuss it with liz mccormick. it is so funny because yields are a little up today. it seems like the path forward is so stop start. how much confidence to bond traders have to dig your feet and now? -- their feet in now? liz: i think this volatility is not going away. a lot of people say the path is lower but it's definitely not going to be a straight line. i don't think they get back today means things are going way higher. like you said, come much how the tenure --ten-year is down in the

month of november. that is a crazy lot. we have seen it before. not for a long time. the u.s. ag mix of bonds has done crazy good in november. since the 1980's. we get these inflection points and things can happen fast. it seems like nothing, nothing, flipping and flopping and then boom. i think the fed meeting coming in december, yeah, we have an update on the dot plot. what are they going to do. they had one more hike which was probably going to go away but they had two cuts for next year. they will do more. the bond market has a lot to look at. payroll is next week. chairman towel is speaking tomorrow. let's see if he throws anything --a monkey wrench in anything. sonali: can you speak to the asset classes within the bond market outside of just treasuries that have been the most oppressive in terms of

performance? liz: yeah. in the bond market even corporates have done well. they saw a lot of inflows this year. a lot of people like mortgages. i heard your segment. people feel the mortgage market will do well. let's get outside of bonds. stocks. just look at the s&p for the year, up about 18%. it has kinda been like the year that did everything we did not expect. stocks are higher, bonds. now it is in the green. all bond classes are up for the year. we have not seen that in a while. they are all doing pretty well. sonali: liz, thank you for your time and your story. bond traders needed a little relief after a couple of very tough years. liz mccormick, we think you for your time. coming up next, s&p's global chief economist paul gruenwald will share his outlook on the economy. how slow is too slow for when you're thinking about how the

economy is slowing into a soft landing? that's coming up next. this is bloomberg. ♪ ♪ you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence.

jon: welcome to bloomberg markets. sonali: let's check on the markets because we're looking at a red day in the s&p 500. if you keep holding up these losses you are on track for a loss for the week. that would be snapping four weeks of gains. we are looking at nearly a 1% decline in the nasdaq 100. i want to look at oil prices. you are seeing them break more below $77 on the heels of that opec+ meeting. ten-year yield you are seeing

bond buying starting to snap a little as well. yields back on the rise about eight basis points higher. 433 on the ten-year. jon: as for the stock movers we are tracking let's talk tech. it's been a big story this month.we are continuing to see some big names added to their gains. salesforce a great example. a top performer for the dow today and your overall. the quarterly results overnight pleasing investors. the stock up about 85% this year. some analyst commentary helping. snap, inc. and snowflake today. the tech theme is a positive one. we are watching deal related headlines. let's talk about this abbvie transaction, more than $10 billion to get a better pipeline of cancer related treatments. obviously that news fueling the stock today.

bloomberg had done reporting on the future of discoveries -- discover's student loan business and we are seeing shares up about 4.5% is the company continues to look at what the future holds for that. that is some deal related news we are tracking along with the broader economic story. sonali: back to the broader economic story. we are hearing from u.s. treasury secretary janet who has a positive view -- janet yellen who has a positive view. speaking to reporters in north carolina, she says signs are very good that we will achieve a soft landing with unemployment stabilizing more or less where it is or in the general vicinity. we will discuss the economic outlook more broadly with paul gruenwald, s&p global chief economist who joins us now. how sustainable is the strong u.s. economy? paul: we think the economy has to slow a bit below potential. on employment is a bit too low from a price stability point of view. that tells you the economy is a

little hot and has to slow down. the golden path is two-ish. we have to drop below that. it is great to have growth of two or five of the previous quarter but we think it has to slow down a bit and land. we cannot do this perpetually. jon: when it comes to the consumer specifically and we did see see data -- we did see data about consumer spending cooling, how do you anticipate looking into next year? paul: interest rates are going to start to bite. we expect a little slower consumer spending. we think the u.s. will have to grow below 2% for year or so. that means consumption has to slow. investment has already slowed a bit. as the rate hike feeds through and we get a little bit more downward pressure on the economy within consumer spending

will slow. still positive but not the pace we have seen for the first three quarters of this year. sonali: how fragile is the landing? if you think about what can turn a soft landing into hard one? paul: the labor market. we have been surprised by the strength of the labor market and strength of services spending. every quarter we pass this through and the forecast. if that holds up, that's the signal we will have a soft landing. if the labor market starts to go south and we see payrolls start to come off, we are going for a harder landing. that has happened more often than not. the stars seem to be aligning reasonably well so far to have a softish landing. sonali: do you think the worst of the hinge has not been seen and there could be -- paul: we finished our credit conditions quarterly exercise and spent time talking about the pass-through. in europe, christine lagarde said the pass-through from rates of the economy is faster in europe and they have slow down already. in the u.s. we have fixed term

mortgages and fixed lending in the property sector. a big maturity welcoming up because firms pre-borrowed. that has to adjust to the higher rates. jerome powell and company know this but the u.s. will take a little bit longer for the rates to feedthrough than other parts of the world. jon: janet yellen was talking about to what steps at this point the fed has to continue to focus on inflation. can you give us your own citations and what the inflation picture ultimately is going to look like? paul: it has to go back to 2% in the medium-term. they want to achieve that target. in terms of the policy rate, we are at or near the peak. we have another meeting coming up in december. that is kind of a tossup now depending on the data. after that we think the fed is done. they will be holding through the middle of next year. when they see where evidence of inflation slowing it will start to cut rates. we are paying attention to real

rates. the difference between the nominal rate is inflation. as inflation falls the real rate may rise more and that could break the economy and that is part of the soft landing story. we think the fed and other central banks are either done or close to being done. jon: i'm curious. the market is making his own calculations here on what happens with interest rate policy going forward. through this exercise we have watched reactions in the bond market and even central bank officials have talked about the impacts borrowing costs ultimately can play. what interest rate levels are ultimately needed. what is the connective tissue of what's happening the market with expectations and what actually ultimately happens with the economy and the extent that impacts interest rate policy? paul: you pointed to an important issue, the policy rate does not directly affect economic activity. it goes through financial conditions.

those are lending rates, spreads, asset prices, exchange rate, etc. the fed is watching that closely. there's a little bit of nervousness around the markets, kind of pushing rates lower because that is easing financial conditions at a time when the fed and other central banks want to keep them tight. they are trying to do the open-mouth operations and talk tough and make sure people know that the target is to get inflation over 2% in the medium-term. you can tell the story where the market -- the central banks may have to do more on the policy rate. that is kind of the risk the markets it too far ahead of the fed. sonali: how do you respect that narrative to fall into next year? with the excitation of rate cuts what does that mean for potentially an exuberant stock market and bond market here. paul: that is part of the financial conditions. the fed has the short-term policy rate they are trying to steer to $29 trillion economy.

when the markets are aligned with the fed then we are all happy because we see this soft-ish landing over the next couple of quarters. next year will be interesting. the probably rates will probably not move for a while. we have these legs we talked about before. the rise in rates might be the easy part of the story. we are de-synchronizing with the u.s. and europe. we have lots of moving pieces to this slowdown story. it is not a one-dimensional slowdown story. jon: before we wrap things up, speaking of that you have to add the fiscal equation. we watch that in canada as well. we are coming off a period where governments were doing some extensive spending because we had a period of unknown for many economies. now we are in a picture where there is so much focus on the central banks themselves. a lot of fiscal questions that have to get answered and are often brought up in political

circles as well. what are you watching closely on that front heading into next year? paul: the fiscal stance is still expansionary. deficit at 7% of gdp and that is pushing demand into the economy in the federal have to react to that. we will have to see how that plays out. next year is an election year in the u.s. and elsewhere. we have this tug-of-war going on between fiscal and monetary policy that might be with us for a bit longer. that's another thing i would add of the list of watches we try to figure out the contours of the slowdown. sonali: s&p global chief economist paul gruenwald, thank you for your time. we watched shares of tesla as the company prepares to deliver its first cyber truck. that's coming up next. this is bloomberg. ♪

jon: this is "bloomberg markets ." time for our stock of the hour. we are watching tesla shares back in the spotlight with today's launch of the cyber truck. another milestone for the company. our next guest was a big part of tesla's model s launch. george blankenship helped oversee tesla's strategy and worked with steve jobs on building a apple's retail stores. the former tesla vice president of worldwide sales and ownership experience. great to see you. how big is this for tesla? george: it's a really big event and will be looked at from numerous different angles. people will say it was announced

four years ago. how many are they going to deliver? at the same time it will be missed a little bit because what happens to the people who get their cyber truck today? i was there when we started delivering model s. with cyber truck their lives are going to change for the next six months because everywhere they go, whether it is a supermarket or the shopping center or a soccer game, people want to take pictures with it. they will want to talk about it. there's an impact on the company today which is big. there's also an impact of the lives of the people who get their cyber trucks today. that's a lot of what we focused on when i was at tesla. how do the customers react to our vehicles. jon: maybe those folks get their 15 minutes of fame. there's been a lot of focus on the reservations. elon musk talked on the earnings call about more than a million. some reported closer to 2 million. what is the reservation?

what does the market have to understand about the demand that exists for people who have not even seen this vehicle yet? george: that is the key. nobody has really test driven the vehicle or seen the inside of it. yet there are ranges about the 2 million reservations for this vehicle, which is unheard of in the auto industry or for most industries. what happens is even if a third of them -- let's say a third of them wash out and don't get them, the f-series pickup did 640,000 units last year. even if a third of the 2 million washout that is still two years of the number one selling pickup in america, the f-series. you can talk about what will happen with them but even if they deliver two thirds it is a major, major milestone. sonali: talk about the consumer experience. how costly is this expected to be and difficult for consumers to get one? george: it is a list and it is in order. it is ordered around the world. this is not just a u.s. thing.

it will be done sequentially. when did you get your reservation and then they will contact you to configure your truck and it will be delivered to you. it is a matter of timing. there will be inefficiency part done to it where they will start close to the factory and go out from there and then they will go to left-hand drive countries and eventually right-hand drive countries after they get that all in place. sonali: do you think the sticker shock will hurt some folks or the there is so much demand that you could have some questions about production on the vehicles? george: i don't know how difficult it is to build this truck. i know how difficult it was to build model s and model x. tesla is more advanced today in its manufacturing, more advanced, they put into the austin factory to do this. i'm assuming the ramp-up will be quicker than model s. model s was reasonable.

we did 12 and one quarter and then 150 and then 2250 than 5000. dicken ramp-up or to quickly. i think people are dying to get it. i don't think there will be a cost issue. jon: george, i mentioned your experience working at apple. one thing that has come up in the last few weeks, and the early days of the iphone people did not know if businesses would adopt it for their employees. what we saw ultimately was iphones made their way into the workplace. fleet sales are a big part of the auto industry. a big part of selling trucks. in your time at tesla you had experience working with some of those fleet related buyers. what do you think the transition -- if you are a company that buys trucks for a range of things you're doing as a business, maybe one of your employees likes the cyber truck what do you think that would be willing to commit to buying five

or 10 or 15 cyber trucks for their smaller medium-sized business? george: absolutely. there is no question. it will be the most durable thing on the road. think about the reveal when it was launched and some of the things they did and how it's being put together. it will be the most durable thing on four wheels out there other than a tank. if you are a construction company or another company that wants something like that, this is going to be your truck. are they going to have to get over the design a little bit and make decisions on how that looks as a company if i order five or 10 of these? they will because of the payback and how efficient it can be to be in ev that is as durable and doing what they need to do. the challenge will be getting them, because there are 2 million reservations for it. they might want to order five or 10 or thousand but it'll be a challenge to get a. sonali: george, great to talk to you. former tesla vice president

george blankenship. another stock we are watching his disney. disney has already rejected pe ltz's request receipts. while james gorman and sir jeremy derroch represent an improvement from the status quote -- behind the significant value and destruction and mistakes that the board has overseen. trian intends to take our case to change directly to the shareholders." bob iger versus nelson peltz as they add them morgan stanley ceo to the board of disney. jon: can his alignment with ike pearl motor who was outed by disney. bob iger sharing more on that.

you wonder how iger was thinking about that because he took steps to reduce costs within the disney structure. now we are maybe getting to a conversation where we will have more to talk about. iger dismissing the idea of tv network related sales of assets. we are getting to the bigger questions that we will watch closely. we are watching the story of artificial intelligence player openai offering tender shares for employees next month. ed ludlow has been chaffing -- tracking the details on that one. 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. a few years ago, i came to saona, they told me there's no electricity on the island. we always thought that whatever we did here would be an emblem of what small communities can achieve. 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. sonali: this is "bloomberg markets." we will get back down to a story that broke earlier. openai sticking with a plan to let employees sell shares in the

company. in giving so they participate in have a month to decide to take part. we will bring in bloomberg technology's cohost ed ludlow who cowrote the story. they are giving employees more time to participate. in the time they give extra time to employees is that $86 billion valuation a question at all? ed: i don't know that it is. literally what happened between the time that sam altman was fired that friday two weeks ago to the time he was reinstated is a number of smaller investors that had committed to an allocation of the shares available got cold feet and dropped out and sources basically said this was a number of smaller firms or those with small allocation. they did get cold feet because it was uncertain what was going to happen in the end. it highlighted the element of risk. the value of openai.

in this case the tender value at $86 billion is really closely tied to sam altman. that is the definition of key man risk. the major players has been led by thrive capital and are still participating. it still values the company at $86 billion. the other thing that happened is that almost every single openai employee has life-changing money with this. they can sell shares in may cash but they can put that in jeopardy because they want sam altman to come back. jon: when we were covering the reporting as the altman departure was unfolding we would talk about how investors were feeling behind the scenes. whether the valuation that had existed would stay in place. what the story highlights is i would assume employees might have been having the same fears about whatever steak they had in the company and what it would be worth with altman's departure. do we know more generally about

the conversations that have been taking place inside the company with those employees in the last few days? ed: the staff at openai had complete solidarity with sam altman. clearly every single employee, all 770 wrote this letter so that the board -- to the board that said bring sam back or we are leaving even though they had money on the line and the content of this tender. they were unified with the investors behind the scenes. they just wanted sam to lead the company. i think moving the story forward now, those investors that were unsure about to participate or not, what they wanted to see with corporate governance change. the microsoft ceo told emily chang surprises are bad. we know the other piece of news overnight, sam altman back as ceo. they have a three-person board.

larry summers is a pain contributive for bloomberg wall street week. it's on an interim basis. there are questions for investors. the main point is the tender is going ahead. sonali: thanks to bloomberg's ed ludlow. we want to take a quick check of the markets because we are watching the nasdaq 100 extending their declines. down more than 1% on the day now. are you fluctuating between 1% or so. we were talking about it. if these declines keep going for the s&p and nasdaq 100 we are snacking a historic winning streak for the s&p 500. snapping what was otherwise four weeks of gains in a row. jon: that is the point. you look at the nasdaq 100 laggards to take, google parent alphabet and meta. these names have been flying high recently. we talked about how the s&p 500 was on pace for the best monthly november since the 1980's and the nasdaq 100 had a

better run. this is bloomberg. ♪

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>> the november rally peters out on the final trading day in the month. i'm scarlet fu. katie: kicking off the closing bell in the u.s.. a little bit of a wall when it comes that november rally. s&p 500 off of i about .2%. nasdaq 100 off by about .9%. this comes after a stellar month. you would not know it by looking at the screen today. you look at the bond market. the story of november has been the bond market rally.

some of that is b