>> welcome to "bloomberg markets ," i am scarlet fu. the u.s. housing market slowed down a touch in the month of august. let's get a quick check on financial markets. meandering in equities after the s&p 500 yesterday closed at a record high for the 41st time this year, currently at 5729.

we are seeing tech stocks gain and that has lifted the nasdaq 100 by .2%. goldstein momentum after the fed 's half point -- gold seeing momentum after the fed's half-point cut last week. let's dig into some individual companies starting with midday movers. abigail doolittle has that covered for us. abigail: stocks on top may not be moving much but underneath we have a lot of movement. hp enterprise up. could be an overall recovery in enterprise servers and hpe stands to benefit from that trend, especially since there is no ai premium in the stock.

the deal with jupiter. there is a report that the ceo of nvidia is done selling shares, maybe removing an overhang in stock. intel at micron higher as well. intel folks wonder whether or not the company could be bought out or the company could accept up to $5 billion from apollo to help with their turnaround. turning to the online gambling space, some nice gains. these are the declines of the automakers. rivian down the most. gm receiving the biggest downgrade. this is an overall downgrade. gm cut to an underweight. adam jonas sitting there are a lot of headwinds facing

carmakers including rising inventories, concerns around the consumer and credit. how do we bring ai into the picture? gm down close to 7%. i believe we will take a look at these online gamblers. the parent to fan dual up 7.3%. they announced a $5 billion buyback. the overall u.s. betting market by 2030 should be $63 billion. draftkings going along with the ride. scarlet: thank you for giving us a preview of what to talk about when it comes to flutter and -- fanduel. mortgage rates posting an a strict week of declines. a pretty sharp increase in the prior month.

apparently buyers remain patient even as mortgage rates steadily decline. earlier on bloomberg, -- the chief economist at realtor.com spoke about this. >> buyers have been willing to stretch affordability as compared to waiting for home prices to fall. big picture inventory shortage is a big explanation for that. we are several million home short of the number of households that have been added and we have that kind of scarcity in the market and it is hard to see prices relax or decline. scarlet: let's get another perspective on housing and bring in the chief economist ed zillow , skylar olsen -- the chief economist zillow, skylar olsen.

in anticipation the federal reserve would cut rates. that happened last week. now that the central bank is on a rates cutting campaign, how does that improve home buyers' confidence? skylar: one thing we are watching is buyers catching up to the idea that mortgage rates are lower and the break we have gotten in mortgage rates might be a lot of what we are expecting. mortgage rates are not expected to go to much lower because they moved early with that anticipation. what we have been watching is buyer activity. it still readily has been returning with the lower rates. it has been met more readily from new -- prices have been real soft although not falling. more recently we have seen more encouraging evidence about buyers responding to lower rates

rates continue to fall through september. now being around 6.1% if you are looking at the freddie mac. that is $200 less per month on the typical u.s. home. thinking ballpark $360,000 price point. that mortgage payment is now $17 50. that is $200 less from the top of may and almost $100 from the top of august. if we go to more expensive markets on the coast, that is an even bigger break. scarlet: you were talking about the fixed rate mortgage. while mortgage rates are elevated, there was some switching by people to a 15-year mortgage or even adjustable-rate in hopes it would come down. what this demand for the other mortgages look like? skylar: that is a really

interesting question. we have not done a breakdown of those products, although you did show the graph earlier. we noticed another upswing in cash outs. what we have noticed with people strategizing around their mortgage product, it depends quite a lot on who the buyer is. a 15-year loan gets year mortgage rates down. that is a better investment potential on your home because the cost of leverage is lower but that dramatically increases your mortgage payment. it is not really an option for a lot of households. the different strategies people can apply certainly do change as prices change. i anticipate for example the incentive to get an adjustable-rate mortgage, which is like getting a cash out refi ahead of time.

these incentives would drop. the upswing in cash out refies, the mortgage rate break is a big deal for enough buyers that did move forward when mortgage rates were high, this is there opportunity. you would be surprised how many people did not refi when the opportunity was there before. we did see the activity moving forward. there was so much pent-up demand because of the upswing. i think the september numbers will be interesting to watch. scarlet: you answered my next question. we are not seeing this reflected in the data yet. there has been a lot of pent-up demand, as you said, and buyers have been patiently waiting for mortgage rates to come down. how have sellers been preparing for this moment now that we are in a rate cutting cycle? skylar: zillow economics watches

seller activity closely because we are written inventory starved market. in july, we saw 26% fewer homes in july than we would have normally seen than in a housing market pre-pandemic. august was better because of the rate break. it probably unlocked a few pent-up sellers, major life events had them wanting to sell, but the rate break moved it into more of an opportunity or less costly to give up the low rate they had locked onto. in august, we are only down 21%. there really is a dramatic improvement for a market that is so very starved. as much as we have not quite seen the really strong response of the buyer, i will say that zillow data did show inventory did not increase as quickly over

august. things are still soft. what i would say, how you could interpret that, we have this affordability break from lower rates. housing markets are not hotter. the buyer is not quite rushing in. this is the sweet spot for the sideline buyers, those actively shopping in the latter part of the home shopping season. we could see this extend out more than we might have expected. scarlet: clearly the dynamics of the housing market may no longer apply. the spring selling season went away with the pandemic. skylar olsen is chief economist over at zillow. we have a lot more coming up on "bloomberg markets." sports gambling is leading the parent company to project a $63

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after i graduated, i started a new job. my degree has has opened new doors that i truly didn't know existed. all it takes is one simple step, and it can change your life. start your future today at snhu.edu scarlet: this is "bloomberg markets." i am scarlet fu. u.s. sports betting is paying off for fanduel parent company flutter. they announced plans to buy back shares and outlined a growth plan. competitor draftkings also climbing higher. for more on flutter's outlook, let's bring in chris. what is the catalyst for flutter 's new outlook and this plan? second quarter results came out six weeks ago and it is not due

to report third-quarter results until mid-november. chris: they are hosting a presentation that just started and will last about four -- hours. this is significant because we are about a month into football season. i spoke with the ceo, peter jackson, he was giddy. it was very happy they have this giant projection going out to 2030 in terms of the size of the market, a 50% increase in what the estimate the u.s. market will be from prior estimates. they gave out the 2020 seven forecast for sales and profits for the company and those are looking pretty strong. that is why you see the stock market reaction. scarlet: looking at businesses and what is interesting is flutter is based in dublin and the u.s. makes up about 1/3 of its overall revenue.

the u.k. and ireland making up about 26%. can you tell us more about flutter's business that makes it distinct from draftkings? chris: it began as patty power in ireland. it has grown dramatically. online betting in europe, they acquired fanduel as the u.s. market was opening up to sports betting. they have nailed it. they have been the number one sports betting provider. draftkings gets a lot of attention but fanduel has been the leader for a while. the first to introduce those parlay bets fanduel that . have been growing internationally. they have grand plans to be the leader in online betting worldwide. scarlet: what did peter jackson

say about further acquisitions? you have been tracking a lot of dealmaking he has been doing and he has been growing the company. chris: he has always been one to make acquisitions. fanduel was a company they bought. a look for companies they can have a leading market share. in brazil he said he partnered with what he thinks is the best online operator -- or they partnered with him. italy, as well. one of the leading players. he is not afraid to spend money and establish that leading position and then bring all the technology they have had based on years of working in europe. scarlet: very quickly, i mentioned draftkings also rising , and sympathy on this news. did draftkings say anything in terms of long-term projections

in growth or the potential of the u.s. market? chris: their ceo was upbeat, too, but flutter sees the market growing dramatically and draftkings is riding that. scarlet: bloomberg's chris palmeri reporting for us from los angeles. sports is front and center for all these different entertainment companies including netflix. we want to stay with netflix because its co-ceo was responsible for so much original programming. recently sat down with david rubenstein to discuss the company. they discussed disney's late entry into streaming. >> always worried about that. we could not believe it took so long to catch up. one of the motivators to make our own content is i was pretty sure if i was right, all the

people would never sell to us. scarlet: to watch more of david rubenstein's interview, tune into the david rubenstein show: peer to peer conversations tonight at 9:00 on bloomberg television. america might be past the peak of college. some institutions are opening a playbook opening to win among this downtrend. we will have more on that, particularly when it comes to northeastern. this is bloomberg. ♪

scarlet: this is "bloomberg markets." i am scarlet fu. america higher education is in crisis. 20-25 colleges will close annually over the next few years. that is roughly double the average over the last decade.

some schools like northeastern and boston are following a playbook to grow amid this collapse. we are joined by the co-author of the story. clearly when it comes to higher education, the strong are getting stronger and the weak are getting weaker. ivy league schools are in a category of their own but smaller schools are struggling to stay afloat. talk about how northeastern is capitalizing on this. >> northeastern is paving a third way within the higher education landscape. since 2019 they have been merging with smaller colleges struggling as a way to keep them alive. in 2019 they acquired a college in london. in 2022, they did one in oakland. they are seizing a moment when schools need a savior or they would close. northeastern is in a unique

position when all these other schools are dying. scarlet: how has this change the school as a whole? once upon a time it had a reputation as a commuter school. in the last decade, its prestige has grown and rankings in the u.s. news & world report have gone higher and higher and his acceptance rate has gone down. >> northeastern used to be known as a school that only local students applied to. in 2006, they got 20,000 applications. last year, they got almost 100,000 so they have grown brand recognition. they have 14 campuses around the world. they are literally getting in the face of everyone who wants to go to college. that is the strategy they have taken at a time when schools are competing for students, they are literally going to where the students are to keep increasing numbers. scarlet: the president of northeastern actually said to you if you do not have the brand

and the differentiation, you will be obsolete so they are jumping on the schools that would be obsolete and taking advantage. have they been successful? having all these campuses around the world in a short amount of time would mean there is confusion from students at some schools taken over along with northeastern students who thought they were going to boston. >> there has been some clash when they merged with some schools. some students protested. it is confusing to go to one school and then all of a sudden go to a different one. there has been hesitancy from struggling schools that do not warm up to the idea of a merger and acquisition. those are not terms thrown around in the world of higher education. other schools are looking at their model. northeastern told us they have heard from nearly 50 schools interested in merging or learning from them and how they are taking on this model.

scarlet: they are fielding offers from schools. take a look at us, come buy for us or weekend buy you. i go back to that question of how is that changing the school? northeastern is known for offering students internships and that is a great value proposition in a day when tuition costs $90,000 a year and students and their families want to make sure they get a job after graduation. >> northeastern is pushing the model of what students think of traditional higher education. they are not tailoring to students who want to spend four years on a small campus. they want students who want to think about the career before the even graduate. that is appealing when college costs $90,000. people want to see a tangible result when they graduate. scarlet: the other thing we need to point out is we have this demographic class coming up. there will be a lot -- a

demographic cliff coming up. there will be a lot fewer students applying to college. if you look at a chart, it goes off a cliff. northeastern has a strategy where it tries to appeal to international students. talk about how that fits in. >> northeastern last application cycle saw 20% of applicants were international students. this is convenient for schools because international students usually pay full tuition and that is how a lot of schools make money. the smaller schools closing are struggling to keep enrollment numbers up and keep people who pay full tuition. scarlet: want to the students at northeastern say? they have gone to a lot of change. we spoke >> it to disneyland. it feels like you are walking shoulder to shoulder, lines to go into the library. she was grateful to be there and

called it the "it girls" of schools. students are feeling the crunch in boston. scarlet: thank you for today's big take on northeastern university. we will take a look at what is going on in china. the central bank is out with a new strategy. what does this mean for chinese markets in the long term? this is bloomberg. ♪

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to buying gold, which will provide you with important, never seen before facts you should know about making gold purchases u.s. money reserve is one of the most dependable gold distributors in america. scarlet: welcome to "bloomberg markets." i am scarlet fu. the stock market is still sitting your record highs with the s&p 500 giving up a little bit of ground. right now just lower by .1%. tech stocks helping lift the nasdaq 100. gold holding near a record high. currently at $2654 an ounce.

let's go back now to equities. even though the big number is pretty much unchanged, abigail doolittle has been looking beneath the surface for individual movers. abigail: alphabet and microsoft. the stocks might not be moving much but there has been a fight between the two relative to the cloud. alphabet ramped up that battle, filing a formal complaint against microsoft with the e.u. antitrust body essentially saying microsoft's azure restricts customers from accessing rival platforms including alphabet's, google's cloud platform, amazon web services. they say their conduct -- in addition the cloud sector, they are trying to dominate the cloud sector, according to alphabet,

exposes european union citizens. the stock is not moving much but the story is interesting. i am sure we will pay attention to it for a while. katie holmes, a big mover. shares down 5%. it may be the worst day since january. it is either january or april. the homebuilding company missed the earnings estimates. the margin was weak. citi said this confirmed their sense that margins could be heard for homebuilders. some of this could have to do with incentivizing buyers. this data is very consistent with the weaker august number four homebuilders. it is interesting to see kb -- kb homes. scarlet: i just checked, you are

right, the biggest one-day move since january. abigail doolittle, thank you so much. we want to look at the macroeconomy. we are taking a look at how china is doubling down on it stimulus. the people's bank of china has cut the interest rate on one year loans to 2% from 2.3%. this follows a wide-ranging stimulus package. here is a reaction from guests across bloomberg. >> chinese markets have gone through a long period of underperformance. people just don't want to be there. what the moves are saying is we have probably reached the end of the underperformance. >> the things we would need to see that fundamentally alter the trajectory are the ingredients including reforms that ultimately push the savings rate

down and drives structurally higher demand from the household sector. >> they need to take more decisive measures with larger scale funding to help stabilize the property market. >> is signals a change of the policies. it went from a highly reluctant stance showing a high degree of tolerance for slower growth over the last two years toward one that is much more proactive. >> it will probably take some time to see how effective it is. the stimulus policy they have announced. scarlet: we are joined from washington. let's take a step back. in this package announced over two days are a blitz of measures to stimulate the economy. >> there are two ways two look

at this. the authorities have announced a series of measures, mostly interest rate cuts making it cheaper to get a mortgage. they are offering q banks. making it easier for investors to get cheap liquidity. injecting cash directly to impoverished households. and then there are the objects of how this came about -- and then there are the optics of how this came about. the governor making the announcement. authorities getting urgent about attacking the slowdown in the economy. it is a big announcement by china. it is obviously important support for the economy. plenty of analysts have been quick to say it is support but not enough to turn around the broader slowdown. scarlet: that is exactly it.

we heard that from our guests earlier, too. what does success look like?the chinese market rallied but if you look at fxi, in u.s. trading it is currently down. investors do not see that impressed. they keep talking about more decisive measures. what part of the economy do they want to see targeted? >> for some time the central bank has been lowering interest rates were it can and trying to stoke lending word can. -- lending where it can. the government needs to borrow and spend more money. it needs to inject money into the economy if it needs to turn things around. that is at the regional and central level. the budget is behind projected spending. a lot of economists are saying that is where the trick will be

to turning around china's economy. some predict the next leg will be fiscal spending. the stimulus events this week and what might be expected to be announced is nothing on the scale of the financial crisis. in 2015, when the world became used to the idea when china can turn things around, this time it is much more piecemeal and much more disciplin nonetheless, thes some urgency in terms of what they are doing. timing-wise, i wonder how much of it is tied to the federal reserve beginning its rate cut cycle and the national holiday on october 1. >> they want people to be in good form about spending. it is a critical holiday period. the said going 50 -- trying to get moving.

they do not know what complications. most importantly it is the economy has been crying out for support for some time now. it has been stuck in deflation. all the indicators have been disappointing at best. the housing sector still remains going through a correction. it is not really a surprise that authorities would come to the table. they are trying to signal a degree of urgency. scarlet: thank you so much. covering the asia economy. china is at the center of many communications at a summit. here is what the european commissioner for climate action told francine lacqua up. >> we do face a china problem in terms of a low level playing field. it cannot be our companies go bust because the marketplace is

flooded with state subsidized products. that will kill european industry and we will not allow that. >> will it be similar policies against china to what we have seen the last five years? >> i am one of the people who firmly believes competition in essence is a good thing but it should be fair competition. fair competition adds to the european marketplace. >> what is your take on financing? how do you make sure china pays its way if you are antagonistic toward it? >> this is something for all of us. it is a fair question for the european union to play a leading role and pay more than its fair share. the world pays billions. europe, something between a 1/4 and 1/3.

others need to step in. if you are ready to go to the moon on a mission, you are able to pay more in terms of climate action. scarlet: that was the european commissioner for climate action speaking with our francine lacqua. coming up on "bloomberg markets ." earnings season never ends. we will look at what investors want to hear, of course it is linked to ai. this is bloomberg. ♪

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scarlet: this is "bloomberg markets." i am scarlet fu.

it is time for our stock of the hour. we are looking at micron technology. for more on what to expect, let's bring in melissa otto. she is head of research at visible alpha. life so many other companies it has become an ai play. can you explain how micron's processors are used in ai? melissa: thanks, scarlet. this should be interesting for micron. it is all about high-bandwidth memory. this is a memory that supports ai-driven servers or sensors. this is essentially what is advancing a lot of the ai infrastructure at the moment. this is an area where micron is seeing quite a bit of demand and

strength in their business. scarlet: i look at the analyst'' estimates for what it is expected to report. the fiscal fourth-quarter, it is expected to post a 91% jump in revenue. you look ahead to fiscal 2025 and the growth starts to slow down. are we at the high watermark for micron? melissa: last quarter the company delivered in-line earnings but sought a ramp up in capx. coming into this quarter, what we have seen in terms of revenue expectations and the high-bandwidth memory, where we are seeing the most dramatic growth, we have not seen revenues taking up that much since last quarter. the dram gross profit

expectations move from $1.7 billion to $2 billion based on consensus. what will be really critical this quarter is the outlook and what the company guides to end how they provide color around next fiscal year. based on consensus we are expecting the dram segment to deliver over 50% revenue growth. for the gross profit to go from $4.4 billion to $12 billion, so nearly tripling year-over-year. scarlet: people want to look at the dram part of the business. i look at how the market has received earnings from two big ai chip related companies. it has been fairly mixed. to some extent that reflects how

sentimental were these ai plays and this ai narrative has stalled. how high or low do you think expectations are? how high or low is the bar following what we heard from nvidia? melissa: it will be really interesting. the goal will be for them to meet or exceed expectations and provided outlook that exceeds where the current market is in terms of consensus. what i have been seeing in the space is companies that do not do that have really not seen much movement in their stocks or may even see some downward pressure in the stock price. scarlet: how specific do you expect micron to get when they given outlook? that has been one of the knocks against these companies.

they will be generally optimistic rather than pinpoint optimistic. melissa: it is hard to call that. i will be listening on the call to hear specifically about what they said about next quarter and what they expect for the next full fiscal year. is demand continuing to out stripe supply? that is what they said last quarter. or are we seeing that moderate? that is one of the critical dimensions to what is driving the gross profit extension year-over-year. scarlet: it sounds like we will be listening for commentary on the gross profit of the dram business, which includes the high-bandwidth memory. thank you, melissa otto, head of research at visible alpha. the award recipients will be

joining us next. this is bloomberg. ♪

scarlet: this is "bloomberg markets." i am scarlet fu. the asian-american business development organization held its annual 50 outstanding event. amy chou is at addition wealth. she joins us in studio. congratulations. amy: thank you. scarlet: i want to get a little bit about your history because that helps build out our understanding of what you are being honored for. you started a jp morgan. amy: i was on a sales desk on a fixed income trading product. scarlet: how did that lead you to the realization that finance was more of a stopover rather than your ultimate destination? amy: i love that question.

financial services is interesting. i am in fintech today. what i spent my time thinking about was the macroeconomic environment. not necessarily building a product for everyday people. after jp morgan i moved into consumer technology. i was building products to things that were inaccessible more accessible to the masses. i was at uber where we help to make rides as easy as booking a ride an app and then waiting for your card to arrive. -- your car to arrive. scarlet: how do you bridge the knowledge gap? amy: a lot of it comes down to putting in the work. understanding users and spending a lot of time understanding the pain points that users face. when i made my first transition over to jet.com. i spent a lot of time

understanding what are the key data points that we want to look at to build the product. i spent a lot of hours grappling with the numbers and using experience from jp morgan to understand how data can tell you what users may want to see in a digital product. we use a lot of that today at addition wealth. we are a financial wellness company. one of the key areas people are struggling with and how can we bring financial expertise to those individuals to help them solve their problems. scarlet: you can bring in a macroeconomic part of the equation which is what you focused on a jp morgan. amy: exactly. scarlet: what is the biggest part about building a fintech company and a product company? amy: it is very different. when you are building a consumer facing product you have more latitude to make mistakes. you can rollback features or rollback code.

in financial services when people are making decisions based on our platform we need to be careful and make sure what we are shipping is almost 100% of the way there. we cannot afford to make mistakes because it has impacts on people's personal finances. ed addition we make sure our processes are robust -- at addition we make sure our processes are robust. scarlet: how is ai involved if at all? how much do you want to inject into what you offer? amy: i love this question because ai has so much room to positively impact technology in all of our lives. the way we think about ai at addition wealth's how can we invest in leverage ai to make our processes, things that were manual or time intensive, faster. we do not use ai to deliver automated advice. there is something special about the human touch but we use ai to

power systems including how we build and ship products all the way through to how advisors can deliver guidance. scarlet: it makes things more efficient but it is not replacing the human touch. you are a woman of color. as coo you are calling the shots. what is the most unexpected part of the evolution into someone calling the shots yet in many ways is a double minority? amy: i love this question. something i have seen throughout my career is you always have to put in the work and be your own best advocate. i have been fortunate to work with strong mentors, managers and leaders who have appreciated having a diverse set of voices. at addition wealth we are proud to have a leadership team that is majority women.

that is rare in financial services and technology. it is something we are really proud of. throughout my career, calling the shots was not natural. naturally, i would do my work and hopefully get recognized and putting my head down. at some point through a lot of pushing and advocacy from managers and leaders i worked with, you need to share your ideas. it is a set of ideas from a diverse group. scarlet: amy, really appreciate you joining us and enjoyed hearing about your journey. amy chou is at addition wealth. she is one of the honorees at the asian-american business corporation's annual 50 outstanding asian americans in business. i am scarlet fu. that does it for "bloomberg markets." you have the s&p down and the russell 2000 all in negative territory. the nasdaq hanging onto a gain

of .1%. gold declining a little bit, backing off of its record high. this is bloomberg. ♪ ♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month.

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. >> welcome to "balance of power" on bloomberg tv and radio. i am kailey leinz in washington. congress will be leaving after voting on a continuing resolution to keep the government funded into september. we will have more live from capitol hill with governor brad schneider who will weigh in on escalating tensions in the middle east. we will have an eye on the harris campaign as she is said to give an economic speech in pittsburgh, pennsylvania. we will speak with aisha moodie-mills. a lot. is ahead is our. we begin with a check on the markets with charlie pellett. charlie: right now looking at