>> welcome to bloomberg markets, i am katie greifeld. geopolitical uncertainties, top of the list for investors to start the week. it is monday of a consequential 10 day stretch. the s&p 500 managing to find a rally, up about 4/10 of a percent. clinging to gains, it had been your pre-market leader, not

anymore but still up about 3/10 of a percent. a lot of the heavy reporting this week. a lot of focus on that ai spend. crude moving lower. israel taking an attack at iran. crude moving lower is that risk premium gets priced out, trading just below $68 per barrel. dollar-yen higher by about 6/10 of a percent. let's take a look under the hood of the equity market. mid-day movers on the equity side and first up, fresh off donald trump's event at msg, the trading of djt his seeing major volume. the stock is soaring as a result of 18%, now at its highest level since june. onsemi has been up and

down, the company reporting third-quarter results that beat x -- beat expectations. topping estimates, shareholders seemed to like that one. shareholders are not sure of boeing, launching its much awaited capital plans. a $19 billion share sale, the largest ever from a public company. this as boeing seeks desperately to address liquidity needs and stave off a potential credit rating downgrade, to junk. for more, let's welcome in julie johnson, she covers aerospace for bloomberg news and julie, there is a lot to dig into. let's start with the fact that boeing is really trying to avoid that downgrade. will this go far enough? julie: absolutely. this should sure up the company through its crisis, unless there is some other black swan that swoops in.

this is boeing saying here is what we need over the next couple of years. we've got some big debt payments coming up, about $12 billion worth and they know they are going to lose money, they are going to bleed cash next year. this is boeing saying we are putting our nest egg together. it'll be interesting to see how it is received by the market, whether it is oversubscribed or not, and there might be signs of wall street calling the bottom on this stock. katie: i'm glad that you bring up demand because this is the largest share sale since 2020. it's been quite some time since the market has had to tape down this sort of size but let's look more at the strike because i have to imagine, pretty quickly after the share sale when it comes to the priority list, it is resolving to strike and where are we on that? julie: it is grinding on, we are

in the seventh week, and if you could believe it, this union has an average of being out for about two months and they go on strike and the history dates back to the 1940's. they are not afraid of management. if you are in the boeing camp, i think there has to be some measure of good news and the last vote last week, on boeing's latest contract offer was voted down by 64% of the members, but that meant that 35% were on board with settling, and that is a big change from september. it feels like gradually, the sides are getting to the place

where something will be worked out, but that is a huge source of heartburn right now for boeing. katie: still a lot of daylight, maybe it is getting better but plenty of wood to chop. i would want to talk about what else kelly would do at this point. bloomberg has reported that boeing is conducting a strategic overview of its different businesses. a lot of questions over what will become of the space unit. what is the latest? julie: it is early on all of this. we have known that starliner, which was the troubled craft that came back to earth without its astronauts from the iss last month, we've known that was something the company was looking at and debating whether they want to put more money into that program, given the history of cost overruns.

with regards to the rest of the space assets, i think it is early. kelly said on the company earnings call last week, that he and his team are systematically going over its entire portfolio, which is huge, and looking for businesses that are underperforming or might do better with other buyers to carve off, and expect to have this wrapped up i the end of the year. so i think for the space business, there are some parts of it that would make sense for boeing to hang on to, so it feels just a little bit early. the company is not out there marketing these assets. katie: we will continue to keep an eye on that one. i appreciate you taking the time, bloomberg's julie johnson, covering aerospace for bloomberg news. let's stick with transports because the small down in the

lecture vehicle demand was hurting some automakers on both sides of the atlantic. ford earnings due out this morning -- this afternoon. earlier today we also learned that volkswagen plans to close at least three factories and eliminate thousands of jobs and/wages are tens of thousands of german workers. for more on all of this, we are joined by bloomberg's detroit bureau chief, david welch and i sat next to matt miller for two hours every day, so starting with volkswagen, i've heard time and time again, this is huge. put it into context for us. david: this is massive and my condolences for sitting next to matt miller. volkswagen is underinvested in the main brand. it is struggling in europe and that has always been a big moneymaker for them because of the sheer volume and they have struggled a lot in china, as all foreign markets to the chinese

market are -- all foreign automakers to the chinese market are. they had prophets coming in from porsche, audi and luxury brands. all of that is coming under -- as china looks worse and they have to make a lot more clear with their profits with just a european business and that puts them in a cost-cutting position and racing to cut costs to improve profits in europe and that is where you're getting these ideas were they have to close plants and cut wages. the union said they are going to fight it. and as if they didn't have enough headaches, the union doesn't sound like they want to play ball, and there could be a lot of fighting and it could be pretty ugly. i can't member the last time -- i can't remember the last time

volkswagen closed plants in germany. it is hard to overstate how important that is. katie: painful for the german economy as well, the german workforce. does it help at all that it is not just a vw issue. we have seen profit warnings from mercedes and bmw as well. david: you have. the european market right now is pretty tough and it has been for a long time. it is not the kind of market like in the u.s. where you have big trucks and suvs that command huge margins. a lot of it is smaller vehicles that just aren't as profitable and there is a lot of competition because chinese companies have been pouring in and the koreans were, before them, and they do pretty well at taking market share. and always -- it has always been tough to get good pricing and it has been a bargain play sort of

market and volkswagen because of the sheer volume was still able to make money because they get great scale, but now that is getting squeezed because there is greater competition in the market is slumping a bit. you it -- the u.s. market has been resilient, so the companies are able to hold but volkswagen doesn't do much business over here and chinese business is shrinking and that puts a larger spotlight on the european business they have. katie: let's talk about the u.s.. i have to ask about ford because you take a look at for chairs and it has been a rough ride, especially since they last reported earnings in late july. what are you going to be keeping an eye out for? david: they lost about 800 million dollars because of quality and warranty issues. they also told us they expect to lose $5 billion on electric vehicle programs. can they bring costs out of that to lower the damage from their ev program and generally get

there costs lower? katie: david, always great to speak with you and appreciate the preview for ford earnings coming later today. that is bloomberg's detroit bureau chief, david welch. coming up, the stock of the hour. we are taking a closer look at the -- at a big mover in the fintech space. this is bloomberg. ♪

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katie: welcome back to bloomberg markets. i'm katie greifeld. today we are taking a look at fiserv. the shares higher in the session.

the payments company is at the money 2020 conference in los angeles on the heels of some major announcements. the event calls itself the world's biggest gathering of the global money ecosystem and we are joined by the ceo, frank bisignano. it is great to have you with us. fiserv recently reported earnings. you have seen a number of price target upgrades in the past couple days or so. talk us through what is your biggest growth driver at the moment and how you see that playing out over the next couple of quarters. frank: i think it is a multifaceted approach. obviously, we are indexed to financial services and businesses. helping financial services grow. a product like clover, which i actually launched here in 2015,

we worked on it since 2013 and now it is a 28% revenue grower. it has the most you pv out there. serving small businesses matter but serving financial institutions and helping them drive growth, a large technology partner, is a large part of that ecosystem. katie: let's talk about the competitive landscape because i'm curious who you consider your competitors. are you an alternative to visa or mastercard or should i be thinking about you in a different way? frank: we are an e-commerce enabler. we process all types of payments and we view ourselves as an enabler for both issuers and businesses. the ability to do 40% of credit card payments across the u.s. gives us the opportunity to be

ubiquitous to all providers. we view ourselves always as a partner. we are a distribution partner of choice to many. anywhere in the ecosystem, we want to partner with people. obviously we like competition, we believe in competition and it has made us perform better. we have lots of competitors out there and many of our competitors are partners also. katie: i'm curious if you are worried about regulation, think about the regulatory scrutiny around different card networks. the doj has an antitrust lawsuit against visa. does that keep you up at night? frank: i generally sleep good regardless. we have a point of view that regulation is forever. having spent my career in financial institutions and

surveying all of the financial institutions inside this country, and outside the country, i think regulation is normal. it is required. we can always debate where the line gets drawn but generally we get the right answer. what is going on right now at the doj, what has gone on before, and our job is to help enable payments for everyone on any rail we can. katie: let's talk about some recent announcements in the payment space that you've made. you tested a real-time payment service offering with walmart. that still allow customers to transfer funds from the bank accounts to online purchases. how quickly do you see these account to account offerings being taken up in the u.s.? frank: i think they are going to be taken up. our view, our job is to provide

the best possible routes for any form of commerce. we sit as a great partner of walmart. if they want to enable pay buy, we have the capability to do it. there will be consumer adoption. some consumers might want to pay by bank. others may want to pay with zelle, others may want to pay with the card in their pocket. our job is to enable it no matter what, and i think we are continually seeing consumers wanting choice, and we want to give both the consumer and the merchant all the choice they want. katie: frank, i am curious given that you had this unique approach, what do you see when it comes to consumer spending ahead of the holidays and the election? frank: we produced the fiserv

small business index and we started that with the idea that we wanted it to be the heartbeat and the pulse of what was going on in small businesses. we see spending consistent through september, october. holiday season has elongated, so it is not what it used to be even five years ago. there will be a question of when holiday season is, but the consumer has been out strong. it continues to grow spending and i continue to be bullish on the economy. katie: that's a good place to leave it. really appreciate your time. that is fiserv president and ceo, frank bisignano. coming up, we take a look at growing concerns around u.s. fiscal spending and how the bond market might react as we approach the election. earlier today, jamie dimon mentioned this spending and

other issues at the american bankers association. >> inflation in my view may not go away so quickly. it might go into next year or 2026 where it starts ticking up like it did in the 70's. huge fiscal spending. the re-militarization of the world, the green economy, the restructure of trade. we see a lot of inflationary things in front of us. ♪

katie: welcome back to bloomberg markets. a wall street veteran who coined the term bond vigilantes in the 1980's, he says the approaching u.s. election could see them return. this comes as the u.s. treasury readies its funding announcement. >> if we get a sweep with either

the democrats or the republicans, the bond market will conclude that nothing will stop either party from spending a lot, maybe cutting taxes a lot for some folks and not others and all in all, continuing to widen the deficit and the debt. meanwhile, interest payments continue to accrue. katie: let's keep the conversation going with ira jersey of bloomberg intelligence. are the bond vigilantes coming back? should i be scared? ira: they have already, in a way, come back we hear more about the debt being an issue. the ratio is over 100%. if the bond vigilantes didn't like 30%, they certainly don't like 100%. the way to think about the level of debt and have the bond -- and how the bond market will move is

that the larger the debt stock is, the deeper the selloff will be and the shallower the rallies. at the end of the day, it is still going to be the economic rallies that will move the market the most. katie: let's talk about those selloffs because we have been seeing quite a selloff when it comes to the long end of the treasury market. 10 year yields are up 60 to 70 basis points since the fed cut rates in september. what do you make of this selloff? what is the driver and how far could it go? ira: certainly the economic data is by far the biggest driver of this. the fed cut interest rates and people thought that will help the economy in the long term but all of a sudden you get a good payrolls report. all of those things combined really suggest that the economy continues to be in relatively good shape, and therefore there isn't a reason to think the federal reserve is going to be able to cut interest rates down

to 3% or below, which is what we were pricing before the federal reserve cut interest rates. the economy is still the single biggest thing that matters and unless we get a significant slowdown and a turn and economic data over the next couple of months, i suspect you will wind up finding a ceiling on 10 year yields. we end up staying in it for quite some time until it is clear that we either have a re-exhilaration of economic activity or a massive slowdown into a recession. katie: we are currently camped out at about 4.28%, pretty much in that range. really appreciate your time. ira jersey with bloomberg intelligence. a quick check over volumes. a hefty week of event risk, not too much happening today. you can see that reflected in the trading volumes.

we will continue to monitor that throughout the u.s. but that does it for bloomberg markets. i'm katie greifeld and 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.

announcer: from the world of politics of the world of business, this is "balance of power." ♪ live from washington dc joe: the campaigns are back in the swing faithfully another wild weekend on the trail. welcome to the fact the show and politics of the campus try for a closing argument is valid eight days left. i am joe mathieu look like it is to the washington. welcome to the monday edition of balance of power here on bloomberg tv and radio. clearly, lovers are still recovering from madison square garden last evening. kailey: it was quite an event where some policy news was made, donald trump putting on the tax credit for those caregiving for members of their family. he could cut through to them dollars in federal spending if he runs for government efficiency commission, since elon musk. but that was overshadowed by the sexist, racis