scarlet: welcome to "bloomberg markets." fresh jobs data with a reshuffle in the bond market. let's get a check on where things stand right now. the s&p 500, stocks have recovered from yesterday's selloff, the worst since august with that global meltdown. when i say recover, they are not doing much of anything at the moment, meaning not falling, so kind of recovering. small caps are gaining and they are among the better performers of the four major indexes but there are major moves in the bond market building on the rally yesterday. higher priced yields coming down seven points to 3.7 8% with the 10-year yield coming down four to 3.78%.

this after the jolt report showed a further slowdown in the labor market, reinforcing the idea that the fed needs to cut rates in september, but by how much and how quickly is really the crux of the debate. these moves and treasuries led the two tens yield curve to steepen to the point where it is imported -- diss inverted recently. today we got to the point where it diss inverted just briefly. the second time since mid-2022 where the spread between the maturities briefly went positive. now for more on the move with the treasuries we are joined by liz mccormick. liz, we look at the inverted yield curve as a precursor to recession. that has been the case, this inverted yield curve, since the middle of 2020 two, but recession never came. is this still a useful signal? liz: that is of a her argument. i was looking back, because you

know, through the last couple of decades even some high-ranking fed officials have questioned if the yield curve inversion thing is broken as a recession indicator and after that question, some people thought way back and said the fed had too much of a hand in the market, they owned too many bonds, but it's a different world now. i don't know that we could say that inversion linked to recession is broken. we may well get a recession, but this was a long inversion, like you said to. it's always up for debate. many people are saying now that the curve, like you said, though it is flickering, i'm waiting for it to close positively, maybe today, but a little bit before the recession starts you can see the distant version happening. because like the market is pricing now, like you have talked about, people are expecting the fed to cut rates, started to cut, slowly getting to what most people say is a

normal curve. you should be compensated for putting her money with the government for 10 or 20 years. a little bit more than for a year or three months. i think that that is where we are headed. scarlet: the trend was the difference between the two year and 10 year. what about other maturities and points on the yield curve? and they show similar movements? liz: we have seen flickering in different sectors. kim harvey at duke now, on the three month to 10 year. the really broad curve. we can see that it usually goes slowly through. everyone in the bond market tends to look at twos and tens. for now that's flirting around but we have had other segments flickering positive. it would be nice when we can definitively say there's a prop -- there is a positive curve across the spectrum, but we are far from that.

scarlet: as we mentioned, the yield curve recently disin verted and is right now still negative. what happens when the fed begins to cut rates later this month as expected? how will that change the shape of the yield curve overall? liz: some folks will have it pan out to be right but once the cutting starts, it's been an upside down yield curve for so long, many people get to the positive slope. especially if the economy unravels faster than you think or there is some exonerated -- exile jun his force where they cut fast. normal times, several hundred basis points positive, meaning two-year yield's 100 or so basis points below 10 year. we have talked about the steepe

ner trade and some were hanging saying that when this kicks in, it's a big winner. the fed has made clear that they will start cutting, but the friday jobs data should give clarity. more on what we think it is going to be. once they start going, they made it clear that they don't want the labor market to crack more. be fast, we'll see, but we should see a continued steepening of the curve. won't get into it too much but there's a fiscal picture weighing in to the long-range of the market. scarlet: absolutely, and of course it could all change in november. that's the fixed income side of the equation. let's move back to equities for a glimpse at the midday movers. abigail: one of the big movers is nvidia, up more than 1%. it had been down earlier after

plunging a 10% fall on the day yesterday as investors continued to re-examine the quarter they reported that was good but not the massive beat that they put up in the past. we have had a bit of a rebound, up .9% and it will be interesting to see where the stock closes. of course we have dollar-yen falling that could pressure risk assets. it's not happening at this moment, but it could come back to bite. technically the stock is likely to fall much more. u.s. steel is up after yesterday's drop on the news that kamala harris, if elected president, supporting the idea that it should not be bought by nippon steel, it should stay a u.s. steel manufacturer, the company said that if that happens they would have to cut thousands of jobs it. it seems that investors are ok with either scenario. one of the biggest movers on the day, dollar tree, down, worst

day since 2000 one. they missed numbers in a big way, missing 35%. it was supposed to be a number above one dollar sales, cutting the profit and sales view. look at the plunge, it's nine days, down nine days in a row, the worst day since 2001, but over the entire time if it was on the percentage it would be a fall of more than 35%, the company saying they are seeing the higher end consumers cutting back, pulling back. there is an interesting story in retail about the mixed consumer. dollar general of course kicked off a similar story where they talked about the low income consumers not really having the appetite. down 40% on the year. on the upside, it's interesting, walmart is up, apparently taking some of the prize, the cake, from the other retailers. in blue we have nordstrom with

private news on that company today. target just hanging in there with a small gain. these mixed signals continue to abound. abigail: retail has been fascinating because it really shows the divide between winners and losers trying to sift through the rubble. abigail doolittle, thank you. nordstrom, let's talk about them. the family behind the company is planning to take it private. for more on this, let's bring in mary ross gilbert. this is not the first time the family has tried to take it private. from where you sit, what is the difference in this latest attempt? mary: you are absolutely right, the first time they tried to take it private goes back to that 2017, 2018 timeframe, when they offered more than two times the price. that time there was a premium

involved. this time, no premium. you would almost say that it's like a take under. that's what makes the transaction different. now when you look at the letter they submitted, they are saying really it's a 35% premium to where the shares were trading in march, when the first proposal emerged that the family was looking to take the company private. that's the big take there. you might say that maybe this could bring in other bidder? it's an interesting story, but when you've got the family with consolidated shares, the family owning a third of the stock and now we have another investor that got involved a couple of years ago. that is the mexican retailer puertode puerto el liverpool.

you basically have 43% locked up. they just need another 23% to make the transaction happen. in terms of financing, that is all disclosed, too. liverpool is looking to pony up 1.2 billion in cash as well as their shares. nordstrom will pony up about half of a billion. looks like they will only need to raise half of a billion in cash in incremental debt. the existing debt will be assumed. the size of the transaction is really more like 6.6 billion to 6.7 billion, that's the size of the transaction. abigail: great context -- scarlet: great context of their. part of the reason it didn't go through is because the family

didn't approve it and there might be other bidders emerging. who would be a natural bidder for a company at a time when department short -- department store chains have lost relevance and are looking to recapture market share? harley: it's a really good -- harley: it's a really good question -- mary: it's a really good question. they have two businesses. they have the full-line department store, but there are only 93, macy's has 500. they will be looking to shutter about 50 of those. they will be looking to close those stores, may be about 10% of the store base. bringing it down to somewhere around the 83, the low 80's, but

they have a fast-growing off-price segment where there is a lot of opportunity. now that they reset the business and cleaned the inventories, the systems are in the middle of getting improved so that they will be able to ship from the store and have e-commerce. the only one with e-commerce is t.j. maxx. >> great point. >> all of the concepts have an online component, making it an interesting part of the story. we have been seeing the full-line stores improve with the way they move merchandise around and bring in new brands. they are differentiated and that it's the difference in this second quarter. 6 appreciate -- mary: appreciate you joining us with your

expertise. scarlet: legal sports books this nfl season, mgm is hoping to capture a piece of the market. the ceo will be joining us next. this is bloomberg. ♪

scarlet: time for the stock of the hour and it is the two companies behind a bet mgm, both moving in opposite directions on the people of the new nfl season. it's a record $35 billion in bets entered into legal sports

books this season. they are looking to score a piece of the action. adam greenblatt joins us now from jersey city. great to speak with you. college football has begun and the nfl season will kick off tomorrow. what can you tell us about the kinds and sizes of wagers already placed before both seasons really get underway? adam: well, we have seen continued encouraging growth in the participation of nfl wagering. we have seen strong double-digit growth year-over-year on nfl futures. this season we are offering over 1000 different kinds of wagering opportunities on nfl futures. for every single program, we will have 450 different kinds of event markets. so, a lot to choose from, more than ever before, in fact. scarlet: those numbers are kind

of stunning. more than 400 ways to bet on each game on the day of. can you be specific about the products you are offering this year and how they are exclusive to bet mgm? adam: absolutely, absolutely. over the last few months we have been working hard to integrate a business called angstrom. for the first time this season we are going to be bringing the power of the angstrom to our players. things that are unlocked by the integration are parlay enhancements, easy to build same game parlay plus prepackaged parlay. we've got some really interesting i think consumer offerings. so for example, who is going to score the first touchdown for the 1:00 p.m. p.m. slate of games? that's quite something to kick off the afternoon. abigail: got it -- scarlet: got it, so that people have their choice. draftkings, when they reported

earnings they said they were experimenting with plans of imposing surcharges for customers in high tax states like new york and illinois. will you be deal -- doing the same or is it more important to gain market share by keeping the payout higher? adam: at the latter. -- the latter. at the moment there's no intent to pass on taxes to players. there are examples in foreign jurisdictions where that initiative, passing on the tax the players, has been rolled back. what we really advise for is customer centricity. scarlet: got it. you talked about how 2000 24 is a year of investments. give us some color on what that means and looks like. where are you planning to spend the most to acquire customers? are you looking to commit to those on draftkings or vandal to come over? or are you looking to grow the

pie through bet mgm? how are you moving forward with that? adam: investment in topline momentum is critical for 2024. we stated that that is our intent. we have got tremendous partnerships with the social media platforms x, envoy, and the associated press, they are all exclusive to bet mgm. we also have our magic potion in nevada, unlocking the power of nevada for bet mgm. we have an omni-channel strategy that is core to market proposition and we recently rolled out our best in class leading sports in nevada and linked it with our single wallet framework, meaning that players from any of the bet mgm states can visit nevada, continue their experience with bet mgm, and

take the experience home. we are excited about the egg -- ability to grow our revenue base by using nevada as a place to acquire the new player topline. additionally, this year we have got the first season for north carolina. we have got a drip -- district wide sports betting in d.c. so, the market has expanded, as well as it being a market share game. we are also looking forward to alberta, which has signaled regulation coming in november, as close as they can manage, to introduce another sports betting gaming state. scarlet: so sports fans, i think about watching a game or going to a game, for that matter. they are bombarded with betting content. it's everywhere they turn and there are some serious questions on whether the marketing campaigns have become

oversaturated. my question to you is how do you build up awareness of bet mgm without annoying or turning off potential customers? adam: that's an important question. we have -- we are opting for continuity this year for bet mgm, we have a brand-new campaign headlined by the one and only jamie foxx, we will see him in new situations with new messages. but they are always consistent with bet mgm as a premium on the channel experience born in vegas, synonymous with hospitality and entertainment. we seek to separate ourselves based on that position. scarlet: in other words, doubling down on the vegas roots. appreciate it, adam. thank you so much, adam greenblatt, ceo of bet mgm. while bob is pumping the -- wawa

is abandoning some of its electric ambitions. -- volvo, abandoning some of its electric ambitions, coming up. this is bloomberg. ♪

scarlet: this is "bloomberg markets," breaking news, we are monitoring georgia. there was a shooting at a georgia high school causing an unknown number of injuries. we know that a suspect was arrested in a chaotic scene.

officers were swarming the campus. students were told to go over to the football stadium to seek shelter. one suspect was apparently in custody, according to the sheriff's office, as reported by the associated press. president biden has been briefed on the matter. we know that the high school continues to be on lockdown at the moment. my understanding is that this happened shortly before 10:30 a.m. new york time, when officers from multiple law enforcement agencies, as well as fire and ems personnel were dispatched to the high school in reference to a purported active shooting. casualties reported at a georgia high school, but we don't have the details on the number or their condition. none of that is available at this time. this is in barrow county, 50 miles northeast of atlanta. the president has been briefed on the situation and we will continue to follow this developing story for you.

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>> from the world of politics of the world of business, this is "balance of power." live from washington, d.c. joe: the harris campaign brings its message on the economy back

to new hampshire. welcome to the fastest show in politics as the vice president aims to unveil new proposals aimed at small business. i'm joe mathieu alongside kailey leinz, this happening as donald trump pushes tax cuts in pennsylvania. it's back to the economy, stupid. kailey: although it has perhaps always been about that, but we have been getting a trickling of economic policy from both candidates for some time now. kamala harris discussed housing policy in north carolina and now she's focused on expanding the small business tax credit tenfold. that is what we expect her to outline. joe: who is the audience as she goes back to new hampshire? she didn't get a chance to campaign there, interesting that she is back in the granite state today. kailey: that will be interesting. we will also speak with someone serving as a surrogate for the harris campaign,