tomorrow with a half-point cut undeterred by retail sales data. where we are markets wise, we were seeing gains for major indices. right now the major -- the s&p 500 is hitting the session low for the day. bear in mind, we are looking for a 39's record. if we get a record close today it would have to be above 5, 6, 6, 7.

it might happen. we are seeing movement in treasuries after retail sales data did not surprise. a five basis point move for the two year yield. obviously more sensitive to what the fed will do tomorrow and gold futures off their highs, very close to a record for gold as well. let's get to the midday movers. on the equity side let's bring in bloomberg markets correspondent abigail doolittle. abigail: looking at the retail sales you were mentioning, initially stocks really liking it. the s&p 500 higher. the nasdaq had been hired. the nasdaq 100 recently reversed lower. relative to retail sales despite worries about the economy and the bifurcated consumer on a month over month basis the survey had been for a small decline and actually came in up .1%. ex auto and gas lighter than expected. the retail sales control group

used for gdp plus up .3%. net/net better than what had been expected in terms of a healthy consumer. as for stocks it is something of a retail stock we will look out. not exactly. but walgreens is retail. just not the way people usually think about it. the reason it is up 2.5 percent does not have as much to do with retail than the fact that they settled a class-action lawsuit by customers that said the pharmacy chain overcharged by generic drugs starting in 2018. 20 years later the customers are winning and customers like that the overhang is coming off the stock. two big stocks that are higher. nvidia has slipped lower. until a really nice gain off of the highs. nonetheless up 5.1%. of course yesterday they received the ability to go to produce $3 billion worth of chips for the u.s. military and today they have wondered pop amazon's aws as a customer and

they will coinvest in a trip around a i've called a fabric chip. investors are seeming to like that both for intel and amazon. vonnie: we have a long day still to go amazon. thank you for that. much appreciated. boeing isn't moving much at the moment. investors are looking to see the outcome of today's scheduled talks between the union representing 33 thousand boeing employees and the embattled company. for more on the developing story we are joined by bloomberg reporter dooley johnson -- julie johnson. what do we anticipate out of today's mediation round? julie: this is the two sides heading back to the table. i would not expect any bombshells anytime soon. it is just restarting the process trying to reach some sort of agreement.

around -- that will satisfy boeing striking workers. it's a big one. vonnie: rbc capital market says boeing will burn about $500 million each day that workers are on the picket lines. how much can it put aside for a strike? does it need an agreement with workers? julie: it will be interesting. i have seen estimates also as low as $100 million. so it is unknown, the financial hit to boeing. but, they absolutely have to come to some sort of agreement. and on the other, you have union members that have leverage for the first time may be in their lifetimes to go in and really get a good deal. i think they will squeeze hard. vonnie: how good are the union leaders at this particular union? we saw a raft in confidence in unions over the last couple

years, much more confidence in leadership and so on. this particular union, i believe it is the 751 chapter. julie: we will find out. the talks are led by john holden, the district president for iam 751, and he was definitely seen as a rising star for labor heading into all this. he struck a tentative agreement with boeing that would have put the pay rates in the realm of what a uaw guard from the automakers last year. the union came out with a strong statement urging people to accept that deal. frankly, miss read the room. it was voted down by a resounding percentage. 96 percent of union members voted to strike. that's unprecedented.

it is interesting. here you've got, i think, a pragmatic union leader and a very activist base. vonnie: do you have any idea from the workers how long they would be willing -- willing to strike for if boeing's hands are tied and the start goes on and on and on? julie: the history of the union is for two months strikes have been the average in the last recent memory. there's history here. every strike is a different animal, people will tell you. you don't want to read too much into the past as a prelude to the future. but, people seem very determined right now today again. i just would not expect some sort of miracle compromise out of these talks this week. it could be a while. vonnie: that is bloomberg's

julie johnsson. boeing stock up one third of a percent read the u.s. justice department is ramping up screwed into banks that collective -- ramping up sc rutiny for deceiving those very firms. credit suisse, nomura holdings, ubs, goldman sachs, morgan stanley, deutsche bank all faced archegos exposure. we are joined by bloomberg's sridhar natarajan that broke the story. the claims were made that the banks were innocent in this whole thing and that hwang pulled the cover over the bank size. now that's not what the justice department is saying. >> we had the manhattan attorney

a couple years back talking to bloomberg mentioned nothing against archegos was supposed to observe other institutions. but there is some irony that if you were in downtown a few months ago when bill hwang was convicted, just three or four months after that you have the same agency, the justice department going after the banks now. of course, another part of the justice department. an antitrust group out of the san francisco office. but it's a criminal probe. what they are trying to find out is if the banks conspired to collude and specifically looking at the talks as they had the final week of archegos with the portfolio was pretty much set on fire. vonnie: it was literally hours the testimony at the trial. why didn't they just pull up the logs?

there's no doubt the banks did have these conversations. some banks, credit suisse, ubs, nomura, signed a managed liquidation agreement when they sold off some overlapping positions in a coordinated fashion. now perhaps the justice department is trying to make a case, especially if it is the antitrust office, that that could amount to collusion. in trying to avoid your extensive losses or are you artificially try to keep the cost of the talks higher? maybe the natural price of the talks absent bill hwang's massive bets was much lower than it was supposed to be. this is not something we have seen often in the industry. take another step back. we have not seen an implosion of a family office like that. the bill hwang case stands by itself. to go after the banks after this theory feels a little novel. the doj antitrust office certainly feels like they have

probably seen enough that amounts to a real case here. but will they actually be able to bring a successful case? that could still be far away. vonnie: we are talking about the sherman act, not something that has really been used in a situation like this before. would it be a jury that would decide? how would this go? for bill hwang surgically it was a jury. how would the banks be penalized if there was a win? sridhar: it is absolutely too early to tell. when we first heard of a probe like this we did not realize it was a criminal probe. it was in the immediate months after the collapse of archegos, june 2021. all regulated some prosecutors are trying to figure out if there was wrongdoing. after we saw the case against hwang the presumption was the case would have probably got away but that does not seem to be the case. it was merely dormant. now, the doj is ratcheting up the antitrust probe. how will this ultimately go, we

don't know. whether there will be a case come out whether there will be a set of mind. what we do know is this general antitrust posture under the biden administration has been fairly muscular. they are loath to make any settlements. they are out there trying to score points and make it clear that if they feel there is some level of wrongdoing that comes under their jurisdiction, they will go after it hard. vonnie: it is a pile of metals, the whole case. that is sridhar natarajan who broke the story. coming up, intel revealing a number of plants that could mark the beginning of a comeback. we will tell you more next. this is bloomberg.

vonnie: time for the start of the hour. intel shares surging for the second straight day after a batch of announcements spurred optimism that a turnaround plan is gaining traction. among those, among -- invest in a custom ai semiconductor, u.s. government funding to make chips for the military, and a spin off chip foundry business. from bloomberg intelligence in washington, d.c., it's been a drip, drip, of announcements. is it planned on behalf of intel? is it a big pr campaign? >> there were a lot of announcements that we can break down starting with the most important one, the aws on the intel process. we heard them logging in microsoft earlier in the year. this validates their

capabilities that are the northstar of the foundry business vonnie: turnaround story. explain what a fabric semiconductor is. kunjan when you think about an ai server it could be an interconnected technology, basically chips used for interconnection and networking. we don't have more on exactly the kind of chip it is. vonnie: the cost saving measures we are seeing, scrapping factories in poland and germany. is it that consistent with elsewhere in the business? kunjan: it's dealing with two difficult things. they have a very ambitious, aggressive foundry transformation goal that needs significant spending a year after year. they need to support it by exerting cash from their product that has seen a pause and slowdown of growth.

from an investor's perspective, these delays or postponements are good because they will reduce the cash burden. they already announced last quarter that they will reduce their growth and net capex from what they had planned before. these subsidy awards and customers and investors help them continue, even though at a slower pace, continue to build on the foundry mission. vonnie: when this is all done, who will be intel's peers at that point? kunjan: the most advanced leading edge. it from a founder's perspective, tsmc and samsung. two other foundry manufacturers trying to reach that goal. from the product side the peer landscape wouldn't change significantly. vonnie: what happened? will intel still be the powerhouse when it has done all of this that we once knew and loved it as? will it be the leading provider of certain chips?

kunjan:wins like this, if we see them happening much more frequently will definitely boost the confidence. again, from a fundamental perspective i think that slowing growth and profitability is expected to say at least -- to stay at least for a year or so so we don't expect any immediate turnaround there. but any help weather to liquidity, rewards, investments, and slowing down capex on the foundry side and at the same time locking in more customers should help the foundry roadmap. vonnie: what should we expect to hear next to? there should be another announcement soon. kunjan: i hope so. a positive one, i hope. vonnie: kunjan sobhani that's kunjan sobhani -- that's kunjan sobhani with bloomberg intelligence out of washington, d.c.. coming up, bill gates on how.

that's next on bloomberg.

vonnie: the 2024 report from the bill and melinda gates foundation found the worst child health crisis is malnutrition and its economic impacts.

caroline hyde recently spoke with bill gates about the details. caroline, what stood out to you as the deepest impacts of what they are trying to do? caroline: the economic costs. $3 trillion. we talk about companies, nvidia being worth three toyland dollars -- $3 trillion. the global impact of malnutrition in this day and age being 3 trillion dollars. why? because it impacts not just the ability for children to grow, but mental capacity. it forces countries in particular african nations into poverty traps when they can't escape it. talking to the man we have with technological innovation. it does not take much to make malnutrition a thing of the past. it means bouillon cubes that are more fortified, prenatal vitamins. let's hear more about how ai and innovation can help.

bill: malnutrition is in some ways a very basic thing. we do need to raise money to get resources for this so that poor countries get out of the poverty traps and are self-sufficient. the innovation will accelerate tools like ai that are helping us understand the gut, the immune system, and how to design vaccines in a very deep way. the key thing the foundation is doing is making sure it is not just helping rich countries, but, helping the poorest. can they get medical advice in their native language on their cell phone? can they have the diseases that are so ignore like malaria? can we use ai to develop ways to not only reduce that but, eventually, eradicate it?

that is where the foundation is. looking at the innovation and making sure it is benefiting those most in need. caroline: the foundation talking with global leaders, often, i am sure. global leaders of wealthy, developed nations that are preoccupied right now with their own political instabilities, their own worries about the cost of living. will you get that help you need from developed nations, do you think? bill: very good question. the dream is even in the face of huge budgetary challenges, that all countries have, that they would be willing to have 1%-2% that goes to help the poorest. to help the country move forward. these are things where you are saving a life for less than a thousand dollars per life saved. very catalytic. very well measured.

i would not be putting my money in unless i knew it was extremely well spent. we are trying to keep this on the agenda, to continue the miracle that took place where we made it so much progress getting rid of childhood death. vonnie: you talk of that merit --caroline: you talk of that miracle. as a somebody who almost sees us taking the steps ahead and then it feels as if something gets in the way, call it a war, call it a global academic and we take what feels like two steps back, do you ever lose confidence? could you ever feel this is a fight that cannot be won? bill: when we set the current goals, the united nations, the sustainable development goals, we did not anticipate a pandemic. we did not anticipate the financial difficulties that african countries would find themselves in, paying more on interest than they can for health and education.

and, we did not anticipate the wars that have broken out. both ukraine and several others including in the middle east. the goals we sat for 2030, you look back and it feels naïve. every life saved really counts. here, we are talking about millions of lives, talking about making countries stable, having health systems so if a potential pandemic is getting started they can stop it before it spreads globally. so 90 -- not only that but the benefits are pretty strong. yes, it's harder today than it was a few years ago to get through the noise level. to get the cause heard. because it is about helping other humans, i think that we will succeed. caroline: bill gates of the bill and melinda gates foundation talking about malnutrition.

you can see all of that interview on bloomberg.com. thanks to bloomberg's caroline hyde. i'm vonnie quinn. that does it for bloomberg markets. the s&p 500 is now in negative territory along with that out. the nasdaq is still positive. the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. - if i told you something extends your life span, improves your sleep, makes you more empathetic,

and reduces stress and cognitive decline, you would think it was a miracle drug. but i'm talking about reading. reading every day does all those things and more, which is why i started my book club, read with jenna. so start a reading streak, even if it's just a few minutes every day, on the way to work, your lunch break, before you go to bed. every little bit helps. the more you know.

from the world of politics to

the world of business, this is balance of power. live from washington, d.c.. matt: 14 days until a possible government shutdown and still no deal. the faster show in politics as lawmakers prepared to vote on a stop gap in the house that is an expected to pass. i'm joe mathieu alongside kailey leinz in washington. welcome to the tuesday edition of balance of power. this comes with a new request for additional funding for the secret service. it's unclear if that will be part of this debate as well. kailey: will it be wrapped into a continuing resolution that will kick the can on the wider funding battle down the road for some time, or will it be addressed separately knowing that speaker of the house mike johnson has expressed some skepticism on whether or not it is actually more funding the agency needs or if it is a personnel and organizational problem in terms of protecting the former.

joe: