sonali: welcome to "bloomberg markets." i'm sonali basak. s&p 500 higher on the day after a choppy start to the morning but nasdaq 100 above the 20,000 level. two-year yield still at 4.29, almost at that 4.30 level. 10-year yield one basis points higher.

it's shocking, this is a level that has been flirting with 4. 50 the better part of last week. changing expectations around the rate cut bets in december by the federal reserve. mid-day movers on the equity side, we will bring in abigail doolittle for that. abigail: continued wild moves for the shares of super micro computer after having traded up more than 1000% into the s&p 500 listing earlier this year, or inclusion, i should say, then down 80%. today we have the stock up 17%. today is the deadline for them to either file the delayed 10k, the annual report they delayed in august, and then hindenburg came out with a short report, or to make plans with the nasdaq to ask for the listing to continue. either way, it doesn't seem like great news, unless the 10k is somehow filed. maybe there are insiders or other folks you know what is

going to happen. there is an 18%. shortage this year so if they should file the 10k, or if the listing continues, there could be good news for the company and the stocks and review the bears letting up after the decline. shares of cvs, nice gain come up 6% on the day. the company beleaguered can they pulled the full-your guidance. the news and investors like is that they added glenn hughes, larry robbins to the board, activists pushing for changes. they have won a concession there. we look at their shows of microstrategy, a big piece of the trump trade, bitcoin above $90,000 per bitcoin. we see microstrategy on the day, up 10%, and this company has added a stunning amount of bitcoin just recently, 52,000

bitcoins, almost 52,000 bitcoins worth $4.6 billion. they own $30 billion worth of bitcoin. the stock is the second-best, of the year of major stocks that bloombergup 400% sonali, in the bitcoin portfolio. a principal trader in bitcoin as opposed to the software company, investors like the strategy. sonali: abigail, thank you for keeping an eye on everything under the hood for us. we are going to turn to the global private markets. we are joined by the cofounder of tko capital, a global alternative asset management firm with more than 47 billion worth of assets under management. thank you for joining us. you are visiting new york on a special milestone for your company. i want to turn over to everybody in the world of finances talking about, where interest rates go from here. a lot of uncertainty.

it matters a lot to business and that of your rifles. -- rivals. do you think interest rates can get lower from your, or is the upside potential? >> it is only going one way, which is up, sonali. we are in the process of discovering what is the new cost of liquidity under the trump era. this is something that should not come as a surprise, just looking at the program and very inflationary. we will see what happens with tariffs. on the other hand, it is good for our business. we've seen the new cost of liquidity and potentially some dislocations. sonali: do you think investors are missed counting here? are they undercounting how far interest rates can go in a trump era? you did see the move higher on the 10-year. mathieu: eventually. we are consistent in the scenario, sometimes to discuss

that. i know it's not 5% and symbolic around that, cannot go higher. it comes down to supply-demand on the type of risk you are taking. i think the world has changed somehow, and the risk-free rate is going up now. sonali: you look at the private credit rolled in those so much out there that is floating-rate. if you have companies saddled with a higher cost of borrowing, don't you have to worry about credit quality? mathieu: there is certainly part of that, that will be very much the case for the companies who may be have been -- the past five or six years the money was free, and other money potentially in part of the world in the markets we have the slowdown, costs are rising, that is what we are seeing now. on the other hand, this is an

opportunity for people involving the private markets like us, but also for a situation where you have to re i's part of the company. that is true for corporate, drew ferguson estate true for -- true for real estate, true for any part of the market that was a little bit short memory in terms of how you approach liabilities. sonali: you have a significant presence both in europe and in new york, in the united states. after trump won the u.s. presidency, what was the thinking? a lot of investors in the usa bet on america, this is a pro american trade, especially with sheriff policies -- tariff policies, it could impact europe in a negative way. do you agree with that line of thinking? mathieu: i'm certainly hearing at, but as a foreigner myself, as long as you can get into the united states, we will see how that plays out. on a more serious note, we see this economy, europe, asia, the

middle east -- back from the middle east, driving force in the overall part of the business we are in -- we see that investors are taking less of a global approach than a specific market-focused allocation. yes, there is a trump trade. but i also think we should keep on a relative basis what type of risk-taking for the return, we do is relatively simple. that is but as it is what as alligators and owners are asking us to, and the global platform makes us more relevant proposal. sonali: between the differences you are seeing in interest-rate policy moving forward and a new political regime, how is it changing your decision-making around how you are investing? mathieu: first, the underwriting base case. are you underwriting for five to 10 to 20%? factoring in the new cost of the

risk-free rate, the cost of liquidity -- we know that capital is not as available as it was maybe 10 years ago. all that is waiting in some part of the market. for us, great entry point where you have this flexible allocation. i will not comment on the public o'grady's market -- public equities market. just is not side the server, several things don't add up. sonali: speaking of things adding up, there was an amazing story that crossed the bloomberg terminal before you sat down, the brookfield tower, the decline in appraised value has dropped by 69%. big companies like blackstone say that real-estate prices have bottom for the what is going on? mathieu: -- two things.

when is leverage, a asset demand and supply and demand. you cannot a flood public equities. there is a backlog of supply to effectively the market. that is somehow normalizing certain parts of the market. the new money coming in, that is where the repricing is taking place. now we like it a lot. not only commercial real estate, but the whole real-estate plays one be like because of these dynamics. sonali: are you catching a falling knife? are you worried that if rates stay high, you will see working in the market, more than people are talking about now? mathieu: you want patient, long-term, flexible capital, being able to effectively price using the language you are taking. right now and the risk-taking

market it is high around the data center for obvious reasons that you are commenting everyday on the program. but the more traditional -- over the weekend i was touring a hotel in manhattan because we like the lodging part -- we love the play both in the u.s. and europe. you cannot approach that. sonali: we are turning the conversation saying you were here soliciting the 2010 anniversary for your pump -- celebrating their 20th anniversary for your company. on the next five years, how are you thinking but expanding? a lot of people are -- are you thinking of mergers and acquisitions? mathieu: it's been an entrepreneurial journey, but also journey with a lot of partners along the way. ever since we started 20 ago, 4 million euros, you need friends

-- you have limited resources in the industry. to me, not the next five, the next 20 years, 20 years forward with my partner, and we are at a time where our industry is effectively consolidating where the retail play that many are discussing quite often is at the center of the growth for people like us, but we still have a very significant runway for organic growth. we expended in asia and the middle east, and despite being born in paris, which is ok, we'll be a great local guide for many global investors. m&a is a big topic. almost everything, you know that. small, medium, large -- if it is not ipo, there are large rumors that come in from time to time here. there will be consolidation, some succession, some ex-generation. i think it is a great moment to

build what will be the winners in the 2.0 asset management industry. sonali: like jane fraser said to me, game on when it comes to m&a, everything up for sale. we thank you for joining us in new york. coming up, new federal rules under trump could relax regulation on self driving cars, according to sources familiar with those plans. what that means for tesla and industry, next. this is bloomberg. ♪

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tesla trading higher after a bloomberg report saying trump officials will be looking to ease regulations on self driving cars. this comes over month after tesla's ceo, elon musk, held an event unveiling automated cars and buses into moment. muska has been a growing political figure in trump's orbit. for more on this we are joined by our bureau chief in detroit, david welch. what does this mean at the end of the day? how do you stack up the effect for tesla versus other firms? you saw an immediate impact on companies like uber, for example. david: cooper and left -- cooper and -- uber and lyft were down distance to leave because investors think tesla with its own robotaxi fleet would be direct competitors for those companies with driverless cars and they are running fleets that have drivers .

there is so much of this still to be determined. the only thing we know is coming up with a federal framework for autonomous vehicles is one of the priorities of the transportation department under trump. if you are in the autonomy business, a good thing because there is a deadlock on any framework within congress and the senate and ntse, controlled by the transportation department. under biden and trump's first administration, nothing really happened. you have to apply for an exemption and it takes a long time and general motors never got it in the max you can put out his 2500 of those vehicles per year. if the transportation department is going to make this a priority, maybe they see my the application process, maybe allow these vehicles on the road.

you would probably still need an act of congress, the transportation department under trump wants to do it and he has got control of the house and senate, may be easier rules for ev's come to pass. that is a lot of ifs before you have a green light for tesla robotaxis. as one of the analysts pointed out this morning just because there is government permission doesn't mean elon's technology works. the market is reacting to one of these things that greece the wheels for tesla, but a lot of hurdles to come before you see the robotaxi business generating margins for the company. sonali: thank you for your reporting through the day. up next, like changing the airline industry as well. spirit airlines filing for bankruptcy. we will look at what is ahead for the airline. taking a look at g20 now

underway in brazil. bloomberg news is there reporting on the ground. this is bloomberg. ♪

sonali: this is "bloomberg markets." i'm sonali basak. today spirit airlines filed for bankruptcy with a plan to hand over control to bondholders after failing to agree on a merger with rivals. we are joined by jonathan randles, who is covering this bankruptcy for us. if you look at the bloomberg bcy go page, you can see that spirit airlines is the largest bankruptcy by assets in the last year. what do we know about the details of the process? jonathan: yeah, they announced a pretty large restructuring of

their balance sheet. that is their plan. they are in a deal with their bondholders, agreed to raise $300 million in equity, another $300 million or so in bankruptcy financing, and to take over the company through an equity swap they are swapping out 38 million dollars in debt for equity in the organized business, which on top of the equity raises what the company says will be enough to get them out of bankruptcy in the first quarter of 2025. sonali: is this the best option for the company? at the end of the day you think about the path to get here and the failed mergers, including the most recent failure to merge with frontier. how did we get to this point? jonathan: they did mention in court papers just filed earlier today that those talks with frontier have ended. they didn't explain going to detail why. we might get more information as

the bankruptcy progresses. the good news for spirit is many of their key creditors are supporting the plan. they already a pretty wide support for it. the path out of bankruptcy, if all goes according to plan, should be pretty easy and quick. sonali: jonathan, we're looking forward to the details in the bankruptcy process. very widely telegraphed and a lot of bondholders an agreement. jonathan randles of bloomberg news. we are monitoring events in brazil today. the g20 is underway in rio de janeiro with president biden set to make the case for his priorities in the remaining months. the world is watching a number of geopolitical tensions flaring and also in the united states, watching what the moves are by president-elect trump. for more on this can we go to david gura live in rio. first speech what world leaders are saying about the change in the white house in the united states.

david: many of the leaders gathered here have been through this before in 2016 and 2017. the element of uncertainty has been removed from the equation. they are not having to wonder how donald trump would govern when he gets to the white house. they have lived through that and know that in broad strokes. they want to get more detail on how serious he is about the bluster from the campaign trail about trade and tariffs, and they are looking with interest at his cabinet appointments. plenty of people are interested in who he will pick as treasury secretary. but they are here to hear from the current president, president biden, who is making the case for all he and his administration have accomplished the last many years. there is limited appetite for that at this summit. he has a handful of bilateral meetings and is making the case to those leaders and trying to put in place continuity between his administration and the next one. there is broad recognition that he has, other leaders have, folks watching this have, that things are about to change. there is familiarity with how things were before, but

uncertainty of what it will look like in practice. sonali: the ceremonial photo is expected with the g20 leaders. that is expected within the next half an hour, hour or so. what is the tone under the surface? there are many leaders who are new -- you and i were talking earlier about what the relationship was like, for example, between the u.k. and china. how are you seeing the relationships changing under the surface? david: it's a fascinating question, because it is through those relationships that we get the most insight into how things are going on the global stage. you mentioned the relationship between the u.k. and china. we saw a meeting between keir starmer, who flew here from london, with president xi jinping from china. it is the first time the u.k. prime minister has spoken to the chinese permissions 2013. you saw keir starmer try to navigate new territory, being on the global stage in a moment

when orders were in the room and he began talking about taiwan and human rights, clearly unpalatable to the chinese staff. he is having to navigate that another new face, claudia sheinbaum, the new president of mexico, is another. she is being treated with a level of fascination in part because she is new and not as well-known. she is having a string of bilateral meetings, 8 of them in total. she is only in town for one and then she is in this unique position. she is so front and center when it comes to, the bluster the rhetoric i mentioned from donald trump. he has made no secret of his animosity toward the economic relationship between the united states and mexico, and then there is the immigration picture as well. mexico is poised to pay a key part in whatever happens, not by her choice. sonali: david, we have to leave it there. we thank you for covering the g20 in brazil. we look forward to the rest of your coverage. that does it for "bloomberg markets" on the day.

we are on an up day. s&p 500 still higher, .4%, still below the 6000 level. keep an eye on it as the day goes on. this is "bloomberg markets," and this is bloomberg. ♪ drop everything and get some magic of your own during the xfinity black friday sale. xfinity internet customers, our best deals of the year are back! switch to xfinity mobile and get your choice of a free 5g phone, plus your next unlimited line free for a year. get amazing savings and connect to wifi speeds up to a gig on the go with xfinity mobile. fly don't walk to get our best deals of the year. connect to the world of wicked this holiday, only in theaters november 22nd.

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

live from washington, d.c. joe: donald trump's choice for treasury maybe none of the above. welcome to the fastest show in politics as the president elect fills in more blanks for his next administration but keeps us guessing on who will run the treasury department i am joe mathieu alongside kailey wines -- kailey leinz in washington. there is much drama here surrounding what is typically a more state affair. kailey: and it is drama playing out in public. it is not just them advocating for themselves but others getting involved as well. from kyle bass to elon musk. that potentially is what is going to drive donald trump, at least he could, pick someone he did not understand previously to be on the shortlist. kevin warsh, the former federal reserve governor, is not one of

h