♪ >> welcome to bloomberg markets, i'm bonnie quinn -- vony quinn. all eyes on nvidia as earnings are expected this afternoon. we did see the selling pick up a little pace this morning. the s&p down more than .5% and the nasdaq down 1.1%. there's a story on that in a

moment. pretty big decline. but the s&p is up 8% on the year. two-year yield changed by five basis points and get a five-year auction at 1:00. and gold is $30 off its record and still up there but down .7%. it is late august but there are still things happening. so let's get to some of those midday movers. abigail has more. abigail: we have quite a few decliners for tech space and you mentioned nasdaq down more than 1% and the s&p going solidly in negative territory. a big piece of it has to do with the chips. nvidia, lots of jitters ahead of earnings but microcomputers plunging 25% after having fallen significantly yesterday and this plunge today of course comes on the delay of their 10-k filing, filing hindenburg short report into all this the chip company had been up in a big way this year on the a.i. frenzy, not so

much but not taking nvidia with it, down 2.1%. earnings tonight after the bell. the comps they're going up against are difficult on a year over year financial basis and could factor into how the stocks react. sliding along with the chip space we have the mega cap tech names, too, including microsoft and amazon. the risk is shifting. let's look at what is working because there are stocks working, ideosynthetic. and the quarter is really nice and a guide saying a.i. and automotive could help them, box the internet software company up 8% and beat billingsworth strong and the guide was good and investors liking that quarter overall. polls, an -- kohl's, an interesting one. it had been up .6% and put up a good quarter, inventories is declining and a 30% bearish

short interest on this one and is a sort of overall pressure but folks are hoping for the turn around and we'll keep an eye on this one. the tape could be weighing on kohl's. one stack on the top is berkshire hathaway, so much so that it has now reached a $1 trillion market cap for the first time ever and i see berkshire hathaway as a proxy for the s&p. something worth noting about berkshire, currently their cash holding is 45% of the portfolio. they are not market timers but the last 6-8 months they have been selling apple, their biggest stake. they've been selling it. you have to wonder why they have so much cash. yes, interest rates are high but there are storm clouds -- not market timing but coming through in the portfolio. either way, this stock doing very well, a $1 trillion market cap. vonnie: they haven't found

anything for years. that's abigail. thank you. looking at the overall market, john hancock's emily rowland talked about the markets. emily: it's been helped a ton on a weaker dollar on the idea the feds will cut aggressively and helped cyclical assets outperform. this quarter those risk on asset classes have been the winner but at the same time you have other market participants pricing in the bad news scenario with areas like gold and long dated treasuries outperforming and we're in this very strange period now where the music is still kind of playing but everyone is not quite sure when the record might stop. vonnie: for more we're joined by amanda for. &c assets management group. thanks for joining. given we picked up selling mid

morning is this market in trouble if nvidia doesn't impress early on. amanda: thanks for having me. i don't want to put all the eggs in nvidia's basket but given the size of the exposure in the index and the expectations going into tonight it certainly will have a material impact one way or another on how results play out. we're not feeling particularly concerned about the results going in tonight, the s.m.c. noise and news over the last day or so seems completely disconnected from nvidia but a lot of investors are holding their breath to see how results turn out this evening. vonnie: september isn't the best month for equities anyway and if you had gone away in may wouldn't it be prudent to stay away a little longer? amanda: you're right, september is not one of our favorite months from a investment

perspective. we've been fully invested and riding this wave the last few years even in the face of potentially a harder landing scenario that failed to materialize and now a soft landing scenario and a couple corrections since may here. so we're not feeling particularly defensive or bearish going into the end of the year but i think investors really have to understand that the dynamics in the second half are going to be very different than the first. it's going to be a choppier environment and it's already been choppier since we hit the midyear point and of course we have fed rate cuts and q-3 earning season and a big election coming. there's a lot of things for investors to wrestle with until the end of the year. vonnie: can i ask where is the ballast for your portfolio? amanda: for us we've been making tweaks at the margin though staying fully invested and it really is a theme of focusing on

quality. we're really focused on quality exposures both in equities and also in fixed income. we've also had to create a little bit of ballast, some minimum volatility exposure that was very beneficial in the swoon we saw earlier in august. so there are some opportunities at the margin to create insurance and ballast and equities. some of these names and exposures haven't participated to the same degree that let's say the magnificent seven have. so there is a slight valuation opportunity but nothing in equities is really table-pounding cheap here. on the fixed income side, we've been leaning away from the low investment grade exposures in this environment. it's still late innings and we think we'll engineer a soft landing here but think investors aren't being paid to take on the risk of fixed asset classes. vonnie: you feel like the market is well priced at this moment,

why wouldn't you keep a little powder dry in case there are some parts of sell-off in parts of the market? amanda: we always have a little bit of cash onhand but it's the world's worst investment and it just creates a little bit of optionality. we do have optionality sitting in portfolios but it's not a big balance relative to history. i think we're just kind of waiting to see how some of these key data points come in over the next couple months, and certainly what happens with the next earning season to take our next big move, particularly in the face of a big election that's coming. it's very hard to get on one side or the other of a binary outcome. that's not how we manage money and try to stay pretty well diversified. so going into some of these events in the second half here, they're likely to create volatility. we think the best way to play it is stay invested but stay fairly well diversified.

vonnie: you're huing to value, what is the value these days? amanda: it's a hard question to answer but from our perspective we see opportunities in the more traditional value oriented or cyclical side of the equation. it's hard to back up the truck in aggressive growth. it's hard to back up the truck in technology and communication services here. we're happy to have those exposures but i think if we put capital to work, it's really looking in the more value oriented, cyclical side of the equation. and dare i say maybe even some of the smaller and mid cap parts of the marketplace and feels early but if we get tailwinds in fed rate cuts in 2025, there's some really interesting opportunities in those areas of equities. are we more dependent on that than other areas and should we be concerned about a consumer concerned about the labor market though the fed isn't that all

concerned about the labor market? amanda: absolutely, we're always concerned about the health of the consumer in good times and bad. the consumer has been the bellwether, the tailwind for the economy for years and years and certainly in this post pandemic environment that we've been in. i think a key data point for us is certainly what the back to school season looks like. what are consumers doing in terms of their spending habits. we've seen a few missteps inline innings and we're expecting consumers to trade down and seeing that trade down. they're still very focused on services but i think we'll get some more interesting data points in terms of the gauge on the health of the consumer, just in the next few weeks and months but think the consumer will hang in there ok. it's been a tough slog and they're getting tired butting the consumer is still hanging in. vonnie: they still have some

confidence and whether they act or not remains to be seen. thank you, amanda. super microshares is tumbling after the company says it won't file its fiscal year report on time after the hindenburg research report as well. we'll bring you details next. this is bloomberg. ♪

vonnie: this is block markets, i'm vonnie quinn. the billionaire founders of sigma are stepping down after feuding for years and handing control to two new co-c.e.o.'s and get the details with hannah palmer who wrote the details.

they've been feuding for years, did something extra happen they finally had to be told, guys, enough? hannah: i think things had built for so long and got so bad the firm actually in a regulatory filing disclosed this was a material risk that the two billionaire founders were disagreeing on so many things it could pose a risk to investors and shows how bad it got that a secretive hedge fund would take such an unusual move and clearly needed to resolve the matter in have -- some way and they seen disagreed on succession but they agreed to step down and hand the reigns over to the two c.e.o.'s. vonnie: i see how you can disagree on succession planning but was it strategy agreements or more day-to-day operational and personal disagreements? hanna: they disagreed how the firm should be run, some roles of senior executives, structure of the firm, succession.

keep in mind this is a kwan fund and they set up models and have teams of people that work under them so the actual investment choices aren't necessarily left up to the people running the firm, per se. but a lot of the firm is managed at the top in some ways and you don't want your two founding leaders of the firm feuding and it actually did impact some employees' ability to have initiatives go underway for talent and attention it can be a problem as well. vonnie: in terms of strategy they'll still have a say in strategy so if you're the management committee, how do you prevent that from spilling back over into day-to-day business? hanna: day to day management will be handed over to the two new c.e.o.'s but the founders have a sizable equity stake and are co-chair men of the firm and the two biggest investors in the fund. they will have say and influence

and will be able to oversee and guide the firm but won't have day-to-day management of the firm's responsibilities because it is impacting the ability of staffers to implement what they need to implement and hopefully should streamline that better. vonnie: what is wall street saying, there are so many lessons for hedge funds that try to diversify the top of the ticket, maybe not just have one person. did anyone try to advise them to get over it? hanna: succession planning in hedge funds is a struggle, you look at the titans of the top, they figure who should take the reigns if they want to step down and how to keep the firm as successful as it was even with the person at the top no longer there. you see that across the board. and this situation, too, you see clearly there was some struggle, the two new c.e.o.'s aren't like the two were running it but it

is not an uncommon struggle in the space. vonnie: the two new c.e.o.'s, one was the chief business officer and the other is the legal mind and somebody who will get in new clients, right, the business officer, is that the reasoning behind the two c.e.o.'s? hanna: blue-blood with a new voice and tenured staff there and not the traditional what we might think of somebody who what is done. h.d.'s in quantitative studies which is typically the type of people who start kwan firms like these. but they like each other and shouldn't be feuding. vonnie: what about those people that joined recently? hanna: they've seen departures

in recent months and the past year or so. the firm's performance has generally been ok. what's interesting is with the public feuding and the news around the news that's been going through a difficult time, their redemptions have stayed essentially the same. and their assets and performance have stayed the same and you haven't seen a material impact on assets or performance. vonnie: out of curiosity what percentage of assets belong to these two? hanna: not clear the exact numbers but sizable stakes. they founded the firm and basically control the firm and equity, they have almost -- i think overdeck has more than david seigel but sizable and close to split. any big decision the firm makes, they both need to agree on it. so you can imagine if a firm is

looking to make decisions and they don't agree, how that can impede progress. vonnie: i can't wait to read the book when this comes out eventually. hanna, thanks for reporting. coming up, touchdown for private equity firms looking for a stake in nfl franchises and break down the fallout from the historic owners' votes. this is bloomberg. ♪

i. vonnie: much of the sports world buzzing. the owners are now allowing others to help. more on this. >> people are confused a little bit in that the private equity

model applied to the nfl applied to the nba is very different. it is more -- i would call it investment fund policy rather than private equity policy. classic private equity firms go in and buy companies and try to grow them and grow the revenues and earnings and globalize them. that's not the case with sports investments and will be done with specialized funds like arctos in existence today stand take limited partnership states and limited to 10%. and i think 30% in aggregate in the nba deal and would be passive stakes and really made to open up the market for folks that want to invest in sports properties and they've created and asette class. it's a little bit of a misnomer to say it's private equity buy-in. it's a passive partnership position so that more people can have access and capital in the booming sports business. vonnie: joining us for more is

rhonda williams, u.s. news u.s. news and sports and was in minneapolis covering the report. who was there that might have anticipated being there in terms of potential owners. randall: clark hunt, jerry jones, josh hare us and a lot of nfl owners were there and it was a pressing issue and the league wanted to get it done before the season starts next week. vonnie: does it mean there will be a lot of new stadiums over the next five years is essentially what it is, money for stadiums? randall: it will be a part of it. clark hunt said there will be some owners who need the money to build them and not just building them but renovating them as well and owners with succession issues who want to shave off some of these things where their children might deal with estate taxes and other issues where maybe a loss is happening among siblings. vonnie: private equity, there have been several funds sort of already green lit if you like to be bidders but will they want their pick of the teams and how will that work?

will they all be vying for the same one or two teams? randall: the interesting thing, the way it was described to me is this was the pretamperring period in the nba and what this is when nba teams and the players are allowed to negotiate with each other. that's what's going to be happening between the nfl teams and these firms over the next couple months is the firms are going to reach out to the teams and the teams will try to find the right fit with the firms. i think they all have a different expertise in the way they want to go about this. we'll find out the next couple months. vonnie: that's the thing, too, is it just about money and who gives the best bit or do these private equity funds have a say in day-to-day operations or who gets picked, for example and if not surely it is about money. randall: this is a capital thing. these private equity firms will have no decisionmaking. i saw yesterday on twitter there were some fans going rabid how this will ruin the nfl but the reality is these firms are coming in with the purpose to buy and help these teams pay for things and find solutions where they may not have them without

some of this money. vonnie: correct me if i'm wrong, in the nba it could be 30% but here we're talking 10% maximum. randall: correct. vonnie: what happens next given we're in a pretty mature busbies. the valuations are sky high and is there more to grow? randall: that's what many nfl owners think and roger goodell thinks and the values will continue to rise and help push them. the private equity part will be interesting and team executives are hoping it happens quickly and waiting to get the money to put it to use. vonnie: give me the first teams. randall: the bills have a stake up for sell and the los angeles chargers have a stake up for sell and the philadelphia eagles jeffrey leury are pursuing a

stake sell. vonnie: can't wait to for him the story as it progresses. thank you so much and the team that contributes to all these stories. let's take a quick look where we are now as we come up towards lunchtime marketswise. we've been selling off just a little bit in the early going and had chip stocks in particular dragging on the s&p and nasdaq 100 in particular. you see continuing that trend down 1.4%. the s&p down 3/4 of a percent a five year action in bonds and see how that's perceived it in the markets and gold close to records, $30 off the record for gold. correlation in this market for risk on and risk off assets interestingly enough. i'm seeing natural gas has changed its direction, up 2% now natural gas and oil, we saw a sell-off in oil earlier as geopolitical tensions and libya continues to dominate the

narrative there but trading at 78.86 for a barrel now. coming up we'll talk about super microcomputer delaying a key filing. the stock falling a lot today. stay tuned. this is bloomberg. ♪ [introspective music] recipes. recipes written by hand and lost to time. are now being analyzed and restored using the power of dell ai. ♪

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♪ vonnie: welcome to bloomberg markets. people wait nvidia earnings after the bell. a quick check of the markets. the s&p not down as much as the nasdaq 100 but down 7% and lower volume at the end of august and jitters. the nasdaq 100 dragged down by

the chip shares. five year yield at 366 and auction taking place in 30 minutes. not many around but suppose those interested in auctions will be at their computers and we've broken the 2500 mark for gold, it's down 1% but don't let that fool you. it's not a calm market. let's get to the midday movers on the equity side with abigail doolittle. abigail: lots happening on the surface, dragging down on the nasdaq 100 but dragging on the s&p. nvidia, the worst point drag for those indexes, jitters ahead of earnings and lots of volatility on the year but the bottom line is still up more than 150%. priced to perfection and really a case of expectations, options suggesting there will be a 9% to 10% move up or down. one thing i would point out here is even though they will put up tremendous growth on an objective standpoint looked at on a sequential basis it's not

going to look nearly as good and will be interesting whether or not that weighs down. broadchronic om down and amazon and a sendoff around technology. if we look at the next earnings movers and move to the retail space, kohl's in the green and solidly so, up 2% and put up a nice quarter and raised the view, inventories are better and 30% short bears and chewy up higher 16% and 13% bear short interest there and they did beat in a way on earnings the actual number not so big, 24 cents versus -- i'll bring that back and did beat on an absolute basis in a big way. the number itself not huge but seems as though the results in some of the categories that were sprung enough to scare the shorts out and attract buyers as well. foot locker put up the first

positive out of a decline. out of the spring bottom this stock up 65% and priced to perfection and didn't quite deliver it. if we turn to abercrombie and fitch, having the worst day since 2022, down 17.8% even with the decline with expectations priced high to perfection, too far too fast and with this decline up 55% year to date and put up a great quarter but investors wanted more given that move. speaking of moves, let's look at the shares of super microcomputer because they're in a league of their own, the worst since 2018. over the last two days, down 29% and on monday 8%. over the last three days, down close to 40%, the better portion of 40% and today they're delaying the filing of their 10-k and investors scrambling to

get in the stock is now scrambling to get out as they figure out what's actually going on there. vonnie: this is so fascinating. thanks for that. abigail doolittle. i want to dig into both those last names but super microcomputer. a really fascinating story trading above $1,200 a few weeks ago and delaying the financial report the end of june. i want to point out the sole communication from scmi told me the company does not concentrate on rumors after hindenburg put out that report because of glaring accounting red flags among other things. here with more is brody ford from bloomberg. it seems like yesterday investors were perhaps by the end of the day giving scmi the benefit of the doubt but maybe we knew these things of nate anderson's report. today it's a different story.

very strange timing that today suddenly they're delaying this report. is it a coincidence? brody: it's interesting because they had well documented unsettling reports in the past and some investors saw the hindenburg report and said we knew this and it's priced in and today they're delaying their 10-k. that's not a step companies take lightly and a company of that scale delaying their reporting, i think we've seen two companies do that this year in the s&p. why are they doing it? they said they're doing it because they're looking into their reporting processes. and crucially they seem to leave open the door some financial responsibility. they're saying they do not plap to change their financials and you see that language in other reports like this. vonnie: for sure. there's also the question surrounding doing businesses with sanctioned entities. what more do we know about that?

brody: we don't know a ton outside of the hindenburg report. the report alleges more issues around recognizing revenue a little earlier than you're supposed to, the phrase you hear sometimes is channel stuffing where you send things out to partners that aren't able to sell it yet. the delay today, they didn't acknowledge any of those allegations but they said we're looking into our internal processes which can let the investor mind wander as we're seeing with the numbers today. vonnie: absolutely. is it possible in the next few days they'll say ok we changed a bit of the lack and we ran it by legal and we're good to go? brody: it's possible but again, if it was a very minor thing, companies hate delaying their annual forecast, they hate delaying their annual filings. i was covering a company earlier this year that delayed their 10-k and what happened is they fired their c.f.o. and active investors got involved. often when you see some smoke like this you'll end up finding

some fire. vonnie: they also announced a stock bid coming up, right, and they're getting into the nasdaq and it's a bad time for it to be happening. brody: there might be the phrase suffering from success and quinn it upled in value over the last two juicer. quintupleed in value over the last two years. on a long scale success story and why investors are ready to poke little holes if they see any errors here. vonnie: it's a server company, pretty simple, not that i'd run it but sounds like a pretty simple, easy to run, and if they have market share, maybe from several of the big guns, shouldn't it be an easy company to keep rolling? brody: you have competition with dell and h. e. and building isn't a big deal

but as long as you have a good labor build to build them and your competitive motor might not be good and who is telling servers to elon musk's companies and meta, they require a crazy number of gpu servers. vonnie: could jensen haung say anything or stay away? brody: it's thought dell and super microare service partners and with nvidia, they've spoken and said michael dell is the greatest. maybe that was a bit of a, you know, forward thinking on his part, maybe he saw some of these issues, it's hard to say. i would be surprised if we saw more from him tonight. vonnie: another win for hindenburg. so far yesterday investors were not -- brody: i'm sure they're doing

cartwheels right now. vonnie: that's brody ford. turning to abercrombie and fitch who boosted its forecast and beat on earnings per share pretty substantially but the stock down as investors raise the bar for the retailer's outlook. for more let's bring in mary ross gilbert. i looked at the results and thought wow and looked at the stock reaction and thought what do investors want? mary: sometimes that can happen and days later you could see the stock reverse or maybe months later. in this case, as you pointed out, they've had a nice run-up this year, still up over 50%. but if you look back over the last couple years, you're talking many multiples up and reflects the strength of the brand but if you look at consensus expectations going forward, they're looking at more tepid increase in sales because how can you keep posting double-digit increases on double-digit increases and we've seen comp sales up 18% which was

pretty strong and led by abercrombie up 21%, hollister up 15%. but this company is very in touch with their core millenial customer on the abercrombie side, gen z on the hollister side, so they're constantly expanding categories and assortments with very attractive and compelling product. every week they have drops, whether it's the western aesthetic, the new nfl lineup that just came out now and also they'll have across their wearing occasions and we hear a lot about the wedding shop, best-dressed guest and also even for the office. they even have some silhouettes for that and even cute channellish type looking short n.i.t. dresses. they really are catering to their consumer with a strong active wear business growing as well. and fran i think talked about how they test and learn and

expand and what you're seeing from them and think they can continue to do this. so we think they're showing strength. vonnie: have they put to bed the problematic issues of the past? we've seen a fallout from retailers, everything from brandy melville to reformation and many of the retailers couldn't stop walking into glass of their own making these were problems. has abercrombie overcome all of that? mary: for the most part they have and it's a completely different retailer than the retailer we've known of years past, so this transformation is very real and they're really catering to a different consumer and it's that millenial. and the other key point to note is their consumer base for both brands, they're from household incomes that make $100,000 to $150,000 so they're in a much stronger position than some of the retailers catering to a lower income and was sort of confirmed yesterday when nordstrom came out with their

numbers and their full line scores showed a modest increase, almost a 1% increase in comp sales but very strong sale through regular price assortments there and they're constantly bringing in new brands within nordstrom and of course they have the fast-growing rack which is in the offprice segment and spans the income demographics there including the high end. so i think we're seeing strength in the high end and seeing weakness in that sort of lower to middle and middle income consumer. and that's where we're seeing, you know, the tough results, for example, out of kohl's today though they beat on the bottom line and raised their e.p.a. guidance for the full year, their sales came in short, actually worse than expected. they were down 5% on a comp basis and analysts were expecting down 2.5%. they need to redo their apair he'll sortles because their core

apparel and shoes underperformed but strong performance with sephora and bringing in new customers. and they are showing things that are working but more work to do. vonnie: the retail quarter has been fascinating and always is. you never know who will outperform or underperform and we still have gap and likes of best buy to come. thank so you much. coming up, we'll concentrate more on nvidia earnings which could shape up to trigger a market event. we'll discuss exactly what the street is watching for. this is bloomberg. ♪

>> definitely see some sharp deceleration in terms of the

data center cap expend. we're looking at 35% to 45% growth here in 2024 from the big five spenders out there and know who they are in terms of the big four and oracle and the names we kind of look at. vonnie: that was cfra angelino speaking about the cap spending. nvidia expecting to report earnings with anticipating strong results. the results and guidance might institute a market event. joining us with more is the key bank managing director john vin with an overweight weighting on the shares. the analysts are still bullish, this name. we need information on the blackwell chip delay and what will jensen say to assure the markets, will words be enough? john: they'll be questioned quite a bit on the earnings call.

i don't expect that nvidia will explicitly talk about the timing of blackwell and think there's a roughly modest delay about three months. where i think they'll get pushed if they don't respond to specific questions of blackwell, they'll report july and guide to the august quarter and blackwell isn't supposed to ship until the october quarter and won't have an impact on the short term results but if nvidia says they expect strong growth in q-4 it should alleviate the impact of this blackwell delay. vonnie: another concern has been about margins and saw not a great reaction to earnings last time around because even though it beat and was doing really, really well, margins weren't as much as wall street would have liked to have seen. what can nvidia do to compress margins more?

john: we think margins will be biased the upside in the near term. what happens with nvidia is when they launch a new gpu market, let's say blackwell, the margins are not optimized because they're going through the maturity yield curve and comprised on many options. but here they'll be shipping copper gpu's which are late cycles and the margin should actually be very well optimized here and think margins will come through in flying colors. vonnie: the fort multiple has compressed and we were at 60 at one point and now at 38. what is fair value? are we involved in price discovery here? john: we have nvidia doing 516nps which means the stock is trading at 25 multiple and nvidia is traded 35 to 40 times

broader group trades in kind of the low to mid 20's. i think using kind of a 35 to 40 multiple is the right multiple for one of the best position stocks to be leveraged to general ative a.i. which gets us to our $180 price bracket. vonnie: that's stunning, 66 buys, eight holds and no sells among the analyst community and more are targeting a stock price above $150. obviously you're among them. what would cause analysts to have to recalibrate? john: a number of potential risks. right now they've got dominant share and it's 90% plus. and they're looking for hyper scalic design and google has its own with gpu and merchant and

a.m.d. is amping the 100 gpu and doing quite well but the share is very small. obviously those two opportunities were to gain greater share that potentially could create risks and headwinds to nvidia longer term and also china, nvidia is still shipping a compliant gpu that is compliant that is determined by the u.s. government. and there are concerns out there that there could be further restrictions imposed by the u.s. government and if that is imposed that could obviously impact some of that revenue and earnings going forward as well. vonnie: for sure. election risks out there. john, thanks so much. nvidia has beaten five quarters in a row and see how long it can continue the trend. john vinh at key bank capital markets. stay tuned for bloomberg's extensive reporting on nvidia results including a exclusive live interview with jensen haung

set to air 6:30 p.m. new york time, a bloomberg technology special and you won't want to miss it. coming up here on september 1, texas will open its new business ports. that's a move the state will hope draw companies from delaware. will it work, though? we'll discuss next. this is bloomberg. ♪ at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team.

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vonnie: this is "bloomberg markets." i'm vonnie quinn. can texas upseeds turned down, a massive effort has been underway to build a similar system in texas due to open december 1. we're joined by julie fine. seems like it's all because elon musk wants his pay package reinstated but it's been an

impetus for a while in the administration. tell us more. julie: this has been in the works for a while. obviously elon musk coming here brings more attention to it. but texas considers itself to be a very business friendly state and having these courts is like a market court saying we can incorporate here and we'll have our own business court system and you can develop it certain ways and the governor is appointing the judges to these business courts and certainly gives businesses an option to incorporate here and take care of major business disputes in this state. vonnie: you gave away one of the challenges, administrative purposes, judges and clerks are getting appointed as texas has five business districts. if you were accompany your chief legal officer, why would you give the advice to go to texas when delaware is there with the experience, the speed?i

s feel it could be more businesswise and you see federal equity firms using the federal courts because the appeals are in the fifth district and known as one of the most conservative in the country. so i think in that respect you may see some come here. however, there are some major differs that will have to be ironed out. for instance, in delaware when you look at the court officers, they're coming from major legal corporations. some of the decisions will be decided by juries here in texas. texas will have to work hard to get the word out about these courts and they will have to show some success early on. now currently right now they don't have some staff. they're working out of state courtrooms. there are no specific buildings now and they're certainly a long way to go. when it comes to texas which is very business friendly, this is another way for the state to point out that. vonnie: greg abbott will do his

level best. thank to you bloomberg's julie fine. a great story and we'll continue to watch it. let's take a quick look at the markets as we head towards the 1:00 hour and the nasdaq 100 is down 1%, a lower volume day, of course. do stay tuned. that does it for bloomberg markets. this is bloomberg. ♪ [suspenseful music] [whoosh] ♪ trains that use the power of dell ai and intel. clearing the way, [rumble] [whoosh] so you arrive exactly where you belong.

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announcer: from the world of politics to the world of business, this is "balance of power." live from washington, d.c. kailey: welcome. i'm kailey leinz covering the financial campaign. as kamala harris and tim walz kick off their bus tour of the swing states. we'll talk to our political panel and we have an important conversation coming up this hour with the co-chair of the r.n.c., laura trump. we'll talk to her about the widening fundraising gap between the trump campaign and kamala harris''s. and we'll talk about how her entrance into the race has changed the strategy for trump and the republican party more broadly. it's a lot to cover but we check