sonali: welcome to bloomberg markets. investors are trying to come to grips with two big data points today hotter than expected inflation and a slowdown in the labor market. let's check the markets. s&p 500 roughly flat sign for the nasdaq 100. a little green on the screen but not much. the two year at 396. an interesting website this morning. the 10 year at 407 almost 408 roughly flat. still movement in the two-year year. hit about 4% days ago.

mid-day movers on the equity side. abigail doolittle joins us. after their prime day event, two days. they say it is the biggest october sailing event they have had. more shoppers since last year. it has been a rocky week for amazon. earlier this week downgraded by bernstein on concerns they may be relying too much on the cloud. it does seem that their e-commerce business is doing well. shares of tesla. today they unveiled a robotaxi. shares higher. they had been lower earlier today. right now up slightly. they're fully self driving vehicle -- lots of pressure to see their fully self driving vehicle. analysts say it will be a growth driver but will it be what folks are expecting given this company

has such a valuation premium over ford and gm? shares of domino's have been all over the map on the day. they reported a quarter that was fine. but the guidance come at this point, earlier today down terribly and now up slightly. the quarter was fine. it was the cut including store growth some of it having to do with inflation as consumers cut back on eating out. sonali: thank you. back to today's economic data. earlier we caught up with pgim's greg peters who told us what's more important to him, inflation or labor. greg: the labor market. inflation is still last year's story. yes, there was an upside surprise there. but, at the end of the day, it is about labor, labor, and labor. sonali: for his take on the jobs numbers today and the inflation print we are joined by mike con

the director at bernstein advisors. you saw the web stop, up and then after the inflation print right back down. what is more important? mike: i agree that jobs are more important to the fed but jobs aren't bad. claims data was weaker today certainly. but over all the jobs picture is healthy. i am not sure if either are that much of a concern at the moment. sonali: at what point does it become a concern? is there a scenario when the fed would have to deal with sticky inflation and weakening labor at the same time? mark: i don't -- mike: i don't buy into the fact that labor is weakening much, frankly. we have a healthy job market. i think the fed is confusing cause and effect with having tight monetary policy and restrictive monetary policy with

really a coincident. -- coincidence. i don't think the fed funds rate up where it is today is causing employment to accelerate. i think it is a normalization of post-covid distortion and in reality the labor market is strong and earnings growth is accelerating. when you have strong earnings and a relatively strong economy labor should not be much of a concern. i take a different view than most. labor is stronger than people realize. sonali: you have the bid in the bond market today and across current where you see swaps pricing in less than one cut in the next meeting. for the fed. what do you make of that? mike: i think the swaps market probably has it right. through the rest of 20 24 and into 2025 the market is overpricing the amount of cuts we could see. i could see a case where the fed

has to skip november because of elevated inflation and reasonable economic growth and a strong labor market. that doesn't surprise me. i tend to agree with that. the bigger thing we will discuss in another 3-6 months is not only will the fed pause more frequently but is there need to tighten policy again? nobody is talking about that, but it's a risk. sonali: what do you mean by tightening policy? we have been talking more about the fact the fed balance sheet is still above $7 trillion, but the last time you saw them tight and you got something close to a taper. it that fair? a tantrum? mike: it is. the balance sheet is so large and running off with such efficiency. at the end of the day there is still so much liquidity out there. it is the fiscal and monetary liquidity out there that i think is what will drive not only the markets, but the economy. and, the backdrop, you have, as janet yellen said, or may ben

bernanke, you probably remember better than i do, it's like watching paint dry. i think that is the way the balance sheet runoff will be for some time because of the excess liquidity under the markets and economy. the runoff won't have a huge effect. sonali: you said they might skip for november. what does that mean for december? is there a chance they don't cut more this year at all? mike: there is a chance. but the bias of the committee and the bias of chair powell is to cut interest rates. i expect they will try to get another cut in this year and, listen, they may cut twice. if they do i think it's a mistake. it is not necessarily that they won't do it. the fed will do what they want. but as you see where the puck is going may be versus where it has been an the fed is looking at where it has been versus where it is going i think you can make an argument that if they cut in november and december it would be a mistake. i could see them not cutting out all the rest of the year. and i could see them putting a

dollar 25 -- a dollar $.25 at each meeting. the end result will likely be what we saw two weeks ago that by listening policy into a reasonable economic environment to recent -- actually get longer-term yields up, inflation and growth expectations accelerate. there is a steepening of the yield curve. that might surprise people that rates could get back towards 4. 25, 4.5. sonali: how do you position in the bond market? would you buy at these levels? mike: right before the fed meeting we reduced the duration at rba anticipating the fed cut and what it meant for longer-term yields and inflation expectations that future economic growth to the upside. we reduced duration right before the fed meeting. we think clients should be underweight interest rate risk relative to the broad market. it does not mean don't own any

treasuries or interest-rate risk it just means to be underweight a little bit relative to the broad market. we also think that investors need to be careful with traditional fixed-rate investment great grade and high-yield debt. the high-yield market currently trades at roughly 290 basis points. the investment-grade market trades in the low 80's. when you get to the levels of corporate that you aren't getting compensated for interest-rate risk. we prefer to get cyclicality within fixed income from other areas of the fixed income market. namely, clos at the moment. sonali: how much risk are you really willing to take on? it seems like many investors are sanguine about what the economy looks like. whatever the tail risks? mike: two are obvious. that what i mentioned earlier is wrong and we are seeing -- aren't seeing normalizations, but the beginnings of a

meaningful slowdown in labor and the economy and you have a hard landing. and until risk number two is the opposite. that the fed, by cutting interest rates with so much liquidity and a strong earnings, etc., is going to ignite a growth boom. there is a risk to that from a fixed income market perspective because it would mean significantly higher rates, higher volatility. higher volatility would feed through to treasuries and other areas of the fixed income market. there are two discrete risks. our bias is there is a greater risk to the upside growth and inflation narrative. i think that is the one that is probably being most underappreciated by markets at the moment. sonali: favorite trade? mike: we really like triple b clo's. reasonable spread, fantastic yields, sensitive to strong earnings growth and a fed that will be less restrictive than

what the market expects. we will go down in quality a little. you have our credit risk from the triple b clo market. sonali: great to have you in studio mike contopoulos from richard bernstein advisors the director of fixed income. the damages between hurricane mountain. we discussed the latest updates from the massive storm that hit florida last night and into the morning. this is bloomberg.

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guilty in a money laundering case. we expect more headlines coming out of the fed, the occ and td bank. we are waiting to hear from them. initially we know they are expected to plead guilty in a case that has been in overhang for this bank all year. you are seeing td shares down more than 3% this year. now, switching gears, hurricane milton making landfall in florida overnight leaving a path of flooding and power outages from the golf coast of the atlantic ocean. florida governor ron desantis saying it could have been worse. >> the storm was significant. thankfully it wasn't the worst case scenario. the storm weekend before landfall and the storm surge, as initially reported hasn't been as a significant overall as what was observed for hurricane helene. sonali: let's bring in bloomberg reporter josh saul.

it could have been worse, perhaps, but the fact we have had back-to-back hurricanes, it's still pretty bad. what are we seeing? josh: the storm surge not being as high as we thought it would be was great. it basically went from two of meet one of me, a lot less water moving through hurting homes and people. but still there's a lot of damage. and at the fact that helene came through the recently made the soil was waterlogged. the trees are weaker and more likely to fall over and knock down power lines. there is a lot more debris around. everything from boards to construction dumpsters. it means when hurricane force wind hit that picked that stuff up, with it around and smash it into power lines causing more outages. sonali: how many people are without power? josh: right now 3 million

customers, businesses and homes, with no electricity. that's very difficult. the number will fluctuate. some utilities have spoken to this morning say it will go up. the storm is still hitting eastern parts of the state and as people return to their homes, they report to the utility, my power is out. it causes the numbers to go up. utilities and power companies have begun damage assessments and flipping power back on. he go down through the day and weeks to come. sonali: chuck watson followed this for a long time and said to losses between tornadoes and other damages could be between 65 billion dollars and $75 billion. given the hurricane is less bad than what is expected could it be less than that? josh: there are a lot of assessments to do. from orange groves to homes and a lot of damage to this is

coming on the heels of helene. we will see. sonali: josh saul up for bloomberg bloomberg news. money under covers weekly segment is back. we take a look with andrea auerbach of cambridge associates. this is bloomberg. . we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

sonali: it is time for bloomberg money under cover our weekly segment covering unique challenges and opportunities facing alternative investments. we heard from citadel securities and jp morgan's jamie dimon about the roadblocks for the ipo market. >> the negative side effects of being a public company as a result of regulations like the

ones you are mentioning happening now are giving people longer and longer pauses. it probably also means, next time when you try to ask me -- not try, when you ask me, whether we are going ipo are not the answer will continue to be no. jamie: under the u.s. we made it harder to go public. we eliminated research into smaller companies. the costs are higher. litigation expenses are higher. filing with the sec is higher. i think we need to make it easier and cheaper to go public. sonali: jamie dimon also said it's partly private companies hope for higher valuations than the market will give them. it raises a question about how private equity can become appealing again without a robust market for exits. bloomberg surveillance anchor lisa abramowicz joins us with a guest on the issue. lisa: i am here with andrea auerbach the global head of

private investments at cambridge associates serving around 580 endowments and foundation clients and hundreds of family offices and institutional investors around the world. wonderful to see you in person. it's been too long. i want to start there. how difficult has it made private equity as an asset class for some of these institutions given you aren't seeing exits we once had? abigail: --andrea: we are definitely in a distribution drought and i think of the dam of pent up exits that endowment foundations have been waiting for we counted the tally at about 800 billion exits that should have happened but have not. that hasn't fit into stress for institutions -- that has fit into stress for institutions relied on that for their activities, philanthropic or otherwise. sonali: how much do you attribute this to a regulatory framework that makes it more difficult ipo? a lot of companies in the private sphere have inflated

expectations for public markets. andrea: private markets are very deep in debt. the information at cambridge associates, there are 17,000 buyouts, venture capital backed companies we track alone. we are covering a big swath of the market. there are an average of how many ipos in the country? maybe 200? most of the exits in the private market will likely go by m&a. a lot of the transaction activity has slowed basically to a trickle, still. and we are waiting. i mentioned in the pent up exits where time is ticking. lisa: it raises a question talking about endowments, other foundations, institutions. do they find private equity less attractive because there are less reliable distributions as has been proven over the past few years. andrea: a couple things. you have to maintain a perspective. what we have said at cambridge

as it relates to the private market is you need to focus on the compass, not the clock. over the last two years private markets have been very quiet. fundraising is down for distribution is down. when your performance in the private markets. that's not a good metric for measuring private market performance. also kind of anemic. long-standing experienced private market investors look out. like on a five year or 10 year basis the private markets have outperformed public 300 to 400 basis points and distributions will resume. they have to. it's not a roach motel for capital. eventually the managers that have the money invested have to realize it and get the capital back to investors. lisa: given the patient's that you kind of have to have through a cycle like this does it make sense to open up to retail investors that could potentially pool their money on a more regular schedule? andrea: that's a good question for the general partners raising

the funds. fundraising at the institutional level may have gotten quieter as of the institutions wait for capital to come back before reinvesting into the asset class. as you and we have noticed there has been an expansion of private fund offerings and other forms of accessing a broader swath of retail investors. that is definitely bringing capital to the space. lisa: i wonder if it is also making it risky for other institutions. you don't want to have to sell when you don't want to. you don't want to have to make an exit at an inauspicious time. and on a broader level when you look at different asset classes in private markets, private equity, private credit, infrastructure, asset-based lending, has private equity become less attractive more broadly as a slice of the alternative allocation because of these issues? andrea: these are temp oral in nature. the average hold period for a

private investment is several years. if you are judging things on a one or two year period you aren't patient enough. the capital has a longer time to do its work and develop that kind of value coming back out. really, it's about patience and understanding who we are investing with and if they are capable of delivering the kinds of returns we are paying them for. lisa: do you find given where interest rates are not the fact you could get 5% without taking risks, the fact that returns are to be had, is it a race to nowhere and a zero world forever? has that changed the appetite for more alternative products? has it served a role with institutional portfolios? andrea: with the end of zerp and the rise of interest rates

private capital has blossomed. but when you start moving into a five-year period or 10 year period private equity and venture tend to start to crest and deliver the kinds of returns you expect by private credit, no mistake, has been thriving in this environment. lisa: i wonder it -- if it will be the same this time around. i hate to say this time is different because you always end up getting burned when you say that. because there has been so much money flooded into the areas and such a race to get deals done, has there been cannibalization of the quality of these deals? andrea: when i think about the amount of capital in the space, keep in mind, the snowpack of dry powder is at an all-time high now. the vast majority of the capital is sitting in funds of $5 billion or more. one thing we always remind investors at cambridge associates, our clients is that this is not a monolithic space.

while a lot of capital may go to the very top of the market a lot of managers are doing their thing in the lower middle market, the growth equity market, secondaries, which has also been blossoming lately this year and last year. it is a broad, diverse space. you have to pick your spots. you have to. lisa: how much have you found that the appetite for risk has been increasing, decreasing, or staying about the same? andrea: when you look back, and we chatted about this last year when we had this conversation, in 2021 and 2022 there was a big risk on element. now with a 50 basis point rate cut does it feel like there might be loosening of risk, willingness to take more on? we are seeing that from a leverage standpoint. spreads are tightening. there is a little more availability. covenants are loosening. it may release some pent-up exit energy that we are watching now. maybe.

lisa: thank you so much. that was andrea --andrea auerbach of cambridge associates. sonali: more markets ahead. this is bloomberg. it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad.

so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

sonali: welcome to bloomberg markets. let's get a quick check on the markets. s&p 500 trying to turn green, not doing a good job. nasdaq 100 also pretty unchanged here but barely in the green. the 2-year yield, buying in the bond market at the short end of the curve, but only six basis points change here in the 2-year yield. around 3.96. i've been told the smart people go out three basis points. the 10-year at 4.07.

abigail: shares of delta airlines, seeing a recovery earlier today. shares were down sharply on a disappointing fourth-quarter view. now the stock on the day down about .2%. the fourth guide was light. in part because of the expectation of less travel around the election and then there was that third quarter of technology glitch that caused them $380 million per share. they still want payback but crowdstrike has hired today, they have struck a security deal with puralock. crowdstrike is one of the better software ideas out there. one stock up for a second day, soaring, djt, trump media entertainment up 15.4%.

right now the stock is higher as donald trump is saying that americans who are living abroad who are taxed twice, he wants to eliminate that. but the plan may be attractive to those living abroad, but what is incredible, the stock since september is up more than 100%. this ahead of the election. i also looked at the bedding between kamala harris and the former president, and donald trump has now pulled ahead ever so slightly. it will be a nailbiter down to the end. sonali: thank you for keeping an eye on it. we are going from the public to the private. we are joined by cais capital ceo matt brown. it is interesting, you have a conference next week. i'll be interviewing the ceo of apollo mark roman. one big trend at apollo and others is the wealth channel, a

big growth area they are looking at. how hard is that to tap? these are assets that have traditionally not been easy to buy. matt: thanks for having me. you hit on something that is a major trend that is happening, which is the alternative asset management community is really focused on serving the wealth management community now. what they are doing is really investing in teams, looking at different product structures which we can talk about, marketing. in many ways what they are doing is copping the playbook of the mutual fund industry and looking at how to serve the advisor better and deliver the right products to enhance portfolio performance. sonali: something the franklin templeton ceo has talked about, the grandfather of the mutual fund industry, also looking at private assets. one interesting structure is the push to put private credit into an etf. is there more where that

came from? matt: you are just beginning to see it. the alternative and asset management community are coming together as one. you look at that traditional 60/40 portfolio that is turning into 20, alternative investments, but the question is how that happens, how you get all three into one portfolio. there are ways to do it. creating a product structure that actually blends traditional alternatives. technology also plays a big role in that as you allocate two alternatives. make no mistake it is happening and happening fast. model portfolios are now comprehensive and include alts alongside traditional's, definitely the way forward. sonali: that etf has not been approved by regulators yet, so we have not seen it, but this has been a couple of years where we have seen hiccups in the structure, thinking about interval funds, it is

semi-liquid, and now you are introducing more liquidity to the market. is there a significant mismatch between the assets and liabilities? matt: the beginning of all of this has to start with advisor education, making sure advisors and their clients understand exactly what their liquidity parameters are for the investments they are making. atcais, we have invested a tremendous amount in the front end of our technology platform to make sure advisors fully understand the funds being offered and how they fit into a broader portfolio. we do keep an eye on it, something that we want to look at. is the fun structure and look terms matching the underlying investments? sonali: one thing i'm also curious about is who this is really made for. it used to be that you had to have a lot of money to be able to invest in alternative assets, the ticket sizes would be north of $250,000 per investment, and it seems to be lowering meaningfully. how much can you put into a fund

these days into one sweep? matt: the phone the structure now allow as little as 50,000, 20 $5,000, in some cases even less. it is less about the amount and more about with a net worth and risk tolerance of the client is. i would argue that traditional as a community, not deemed as risky, alternative, presents much more risk. alternatives have a great way to deliver non-correlated returns and level out portfolio performance. that is why you are seeing such a huge push not just apollo but every alt. sonali: large wealth management forces these days. when you think about how wonky these assets are getting, it is not just private credit, private equity, people are trying to figure out how to invest in alternatives such as sports.

what are some of these asset classes that are new to these investors that may not immediately meet the eye? matt: as a platform for alternative investments, we have a nice seat to see all the new ideas. we cannot ignore this trend of sports media and entertainment assets that were largely reserved for the super high net worth individual now being democratized and made available to average investors. it is an amazing asset class. take sports. you look at the value of some of these sports teams, nfl, nba, etc. and the media rights value that they have. i just read 48 out of the 50 top watched television shows were live sports. live entertainment, live sports are dominating. media contracts are able to add huge franchise value to these sports teams. sonali: it's interesting because

it is not just sports, artwork as well, interesting assets that have already been private. this week alone we have heard from jamie dimon, citadel securities, wall street executives saying they have had this frustration that the public markets have not been more open to companies. how does that problem play out among investors that usual platform? matt: because we focus on private markets, you are seeing more great companies stay private. that is one of the reasons why the private markets are growing so fast. some that you mentioned earlier, we have collected over 600 financial advisors and over 60 of the leading private market managers, coming together to talk about questions like that. what is the future of private markets? what if the ipo market is not that robust? they are asking themselves as ceos of companies do we need to go public? are there other ways to get

liquidity for shareholders? it will be a fascinating summit, very happy that you are joining. sonali: if you are not going public, perhaps private equity has more ideal opportunity, but it is not an asset class that has been doing well lately. what is the interest of your clients to be in that world? matt: private equity and the word "lately," often don't go together. anyone investing in private equity right now is doing it for the five and 10-year horizon. markets go up and down but historic returns speak for themselves. market volatility of traditional asset classes right now are getting a lot of people some anxiety. we have an election coming up. we have global instability. private markets, from the view of the volumes coming across our platforms into private credit, into private equity, i think financial advisors are voting with their dollars on where they think the right place for their clients capital is. sonali: thank you so much, matt

brown, ceo and founder of cais. live look on the ground in florida as hurricane milton leave behind a path of destruction. that is next. this is bloomberg. ♪ so, what are you thinking?

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sonali: this is bloomberg markets. we are following the latest updates in the wake of hurricane milton which has left a path of destruction across florida. abc news correspondent jaclyn lee is on the ground in st. petersburg in front of tropicana field which is one of the most visible structures damaged. >> you can see the devastation behind me. what is interesting is the roof which was made of fiberglass,

made to withstand wind gusts of 150 miles per hour. our meteorologist confirmed that st. petersburg received wind gusts of about 101 miles per hour. we heard earlier from florida governor ron desantis. he said on wednesdays when they decide to move out the first responders initially ahead of hurricane milton's landfall, this was going to be a base camp. 10,001st responders and operation would be based here at tropicana field. once they saw the forecast, they move them out on wednesday and thank goodness they did because you can see the devastation here. sonali: how do residents feel? >> we just spoke with a woman who lives across the street. she lived on the eighth floor so she decided not to evacuate. but she said last night she was terrified. she said it sounded like a freight train with the wind and rain lashing her windows. she and her friend rushed into the stairwell on the 14th floor

and stayed there all night long because they thought they were going to die. she says she don't look leading in her apartment but has never had to deal with something at this level before and all of her time in florida. overall terrified but very glad she made it to the other side. sonali: we appreciate you joining us. that is abc news correspondent jaclyn lee. as of 11:00, more than 200,000 flights around the u.s. were canceled, most of then orlando, tampa, palm beach, miami, and southwest florida international. for more on this and delta earnings, we are joined by a sheila kahyaoglu who covers this space over at jeffrey's. let's talk about these cancellations and delays. between the hurricanes, the weather we have seen across the country, and also the outage that we saw a couple months ago, how much disruption is that right now to airlines, what is the economic impact?

sheila: the most exposed airlines are the low-cost lines. frontier. 50% of their capacity goes to the florida market. as well as spirit airlines i would keep my eyes on. american, delta, united, have about 5% asm into the market, so much more diversified. for now, it is clearly a very catastrophic event. from an airline perspective, it is taken capacity out of a market that we have seen yields depressed. sonali: i fully appreciate it is very early and hard to calculate the economic impact but want to go behind your thinking of that analysis? sheila: hard to tell. for the network carriers it is actually not meaningful. we have seen capacity come out of the market. first half capacity grew 7% over the year. exit rates for the year are at 1%, 2%.

lower-than-expected. we thought we would exit the year up three. that is how we are thinking about it. hurricanes and events, to put it in perspective, the paris olympics on delta had a bigger impact. they are saying people will not travel the week of the election, so they are calling that out more than hurricane. sonali: let's talk more about delta. the stock is down .3%, still up more than 25% this year. what did you make of the results? sheila: they were ok. i read it more positively for united to be honest, where they are seeing their strength in the coastal market, sing that come back, that is where united is position more so. pricing is improving a little bit but you are seeing a discrepancy. main cabin down five, premium up four. a nine-point discrepancy come historically five points.

we are seeing that continued to yield better results. cargo remains strong. a lot of it bodes well. crowdstrike impacted delta's results a little bit but it bodes well in terms of united, best positioning for them. sonali: fascinating, talking about the discrepancy between the more expensive seats and the regular seats. how does that compare elsewhere? sheila: everyone is diving into the premium market. main cabin seats are down 5% year-over-year in terms of prices. nothing is down 5%. while you are seeing that is so much low cost capacity, low cost carriers coming into the market, so that is driving down yields. everyone is going premium, whether it is delta or united, but we also saw southwest. we upgraded them to a hold rating because we think some of their extra legroom strategy, even though it is only three inches, will yield a price premium.

it will not yield what they are telling us but they will get some premium for it. sonali: if everyone is diving income at what point does that put pressure on the luxury markets? sheila: that is what we are wondering. if main cabin improves, it is not so much of an improvement to delta, if premium continues to expand. how many sky clubs can you have? i don't want to misquote how many they have but they are upping the premium experience. it is not only about extra legroom. i agree, it's about the sky clubs, the overall experience. the unitedapp is a leading indicator for how good it is. it is really easy to re-book, chat tools are great. it's about the overall experience. sonali: that rebooking, an important service here. i fly economy largely, so i don't even know how much these flights go for. sheila: cpi prices came out today.

some people say it is not a leading indicator, but we average about $300 for the, average ticket in the u.s. economy fares. you have to know the route structure. when you fly united and delta, you pay a premium of. sonali: what is a fair price for a lecture receipt? sheila: i don't think about the pricing, i think about what kind of aircraft i am flying. am i flying a 757 that may need some maintenance are in life like a brand-new a321? i think about the cabin experience rather than the price. if you are flying older 757, 767s coast-to-coast our into the atlantic market, that drives a bigger difference for me than actually what kind of cabin you are flying. sonali: thank you so much. that is jefferies managing director of u.s. equity

research, sheila kahyaoglu. sorry about that. we both have difficult names. coming up, talking more markets. before we let you go to break, some breaking news. some news in the m&a world. the legendary group, the studio run by thomas tellier, pursuing an acquisition. we will bring you details on that next. this is bloomberg. ♪

sonali: this is bloomberg markets. i'm sonali basak. earlier today i was able to speak with the chairman and ceo of ruby dee macro associates, the famed economist to earn the nickname dr. doom for his prediction tied to the global financial crisis. we asked about the u.s. election and who might be better for the economy. >> economic policies will be

very different. if you take at face value what donald trump says, he says he will impose tariffs of 10% up to 20% on all imports in the united states. he wants to impose tariffs up to 60% on china. he wants to weaken the value of the dollar because he thinks it is overvalued. he wants looser monetary policy. the center for responsible budget today said that these fiscal policies including making permanent the tax cuts will cost us another seven point $5 trillion over the next decade. both of them larger deficits but certainly much larger. on top of it come if you want to restrict migration. we know migration has kept a caps on wage growth, supply of labor maintaining growth above average, so the combination of his policies, currency, monetary, fiscal, immigration implies somehow higher inflation

and lower economic growth. in that sense, there will be stagflation. >> when i listen to his defense or others defending his policies, they say, look, -- pretty long list -- they say, first of all, don't take what he says at face value which is a little bit difficult. they do say that if you drive up those tariffs, you will have more on short of manufacturing. also if you get tax cuts, a laffer curve argument, we will take that money that we didn't give to uncle sam and spend it in the economy. they are saying they are going to push growth. why don't you buy that? >> first of all, if you are going to impose tariffs, that increases inflation. if you are not going to import the goods from china because they are 60% tariffs, low value add, labor-intensive goods will go to vietnam, bangladesh, turkey, mexico.

the idea that we are going to reshore low value manufacturing in the u.s. doesn't make sense. it is just a transfer from china to somewhere else. he is making the argument that making the tax cuts permanent will help economic growth. he wants to massively deregulated economy and he wants to move away from a green transition to phasing out those irs subsidies, going to massive subsidies in fossil fuel production. he says 3 million barrels per day over the next year's. the reality is, the regulation doesn't have a large impact on economic growth. maybe five or 10 basis point but not more than that. tariffs have a negative impact. sonali: that was nouriel roubini. before we let you go, check on the markets. we have had a pretty flat day in the s&p 500 but extending losses, down nearly .2%. same for the nasdaq 100.

the two-year, three point 99. big reversal there. that does it for bloomberg markets. i'm sonali basak. this is bloomberg. ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> a very good afternoon. we are not quite in new york. we are on the west coast. tim: it is. fair to say good morning. . it is 10:00 where we are. carol: we are at bloomberg screen time in hollywood. we have a lot to feature from this event. it is all about content creators, how we are thinking about content creation and how we get it. we have some great interviews coming up what we have a lot of news going on as well. tim: you didn't even talk about snoop dogg yet. he was here last night. we have a great few hours. we will be with you on the radio for the next four hours and on tv for the next two hours. in a few minutes we are going to hear from the chairman and ceo of comcast at a time when the media industry is going under profound disruptio.