>> welcome to "bloomberg surveillance," i'm scarlet fu. big time names weighing on the equity price market action mid day. a quick check on where things stand right now, the s&p 500 is little changed at the moment. modest moves, up .5%. the s&p 500 has not closed up or down more than .4%. you have that magnificent -- magnificent seven being a drag here. down, nvidia, alphabet down, after the doj proposed that they sell their web browser.

across the curve there has been a bit of a turnaround and you can see yields inching higher. bitcoin is still on fire, approaching $98,000, got past that point, up almost 3%. individual movers on the equity side, let's check in with abigail doolittle. abigail: shares of mcdonald's are trading lower at this time. this after they propose a value menu for 2025 after buying one item, another item will be one dollar. the company and franchisees saying that they are hearing from the customer that they want to make sure that this restaurant continues to be seen as a value oriented restaurant after this period of steep inflation but investors are not impressed by the plan so far. coinbase, this is interesting, as we have bitcoin approaching

$100,000 as you were mentioning, most of the crypto names are sharply higher. it's incredible to watch microstrategy up six hundred percent, the public company that owns the most amount of bitcoin. coinbase, not so much, down 7%, the ceo selling $19.1 million in shares. some saying that the ceo, armstrong, could be the person that the trump administration coming in, if they create a crypto department of some sort, could be the president-elect's crypto czar. this company could be without a chief officer, another reason for potential selling. turning to a big winner, shares of snowflake soaring on the day, their best day since 2000 20, beating adjusted earnings estimates by 32%. the product revenue guide for the current quarter is

stronger-than-expected. investors love it, sending the stock higher. scarlet: good stuff, thank you for those individual movers. right now i want to welcome aaron brown for an exclusive conversation, the portfolio manager over at pimco, she just published her outcome. thank you for joining us. very simply, you see bonds and stocks returning to what you see as an inverse relationship. why is this? erin: we are at a really interesting point. usually at this time of year there is a wave of articles coming out saying that the 60/40 portfolio is dead and investors should pivot to a different type of investment style or portfolio, but i would argue right now we are at a really interesting time for stocks and bonds. i think they can both do really well in the year ahead. first, our base case is we are

heading into a soft landing, we are in a soft landing, we will persist in a soft landing in the year ahead. secondarily we are at the point now where the fed is taking steps to lower the interest rate and we think that will continue through the first quarter of next year, certainly supporting equity valuations, but also bonds. we are at really high starting levels of valuations in terms of yield for bonds. as it cuts, you will get the benefit of capital appreciation. lastly, bonds now with a negative relationship with respect to stocks, are doing well on days where the equity market sells off and vice versa, bonds can really complement the portfolio and allow you to take more risk in the portfolio, because bonds are a good diversifier as a hedge. scarlet: when you look at bonds, does that mean the selloff we saw since september is over? we won't get to 4.5% or even 5%

on the 10 year? erin: it's hard to say, day-to-day or even month-to-month, gyrations in the fixed income market, right now we are seeing that market really selling off in anticipation of some fear in terms of what could happen to the fiscal deficit next year and what policies might occur under a new trump administration. i would say that at 5% i would be looking to get interest in buying more aggressively fixed income, but even that starting levels today, close to 4.5% on the 10 year bond, historically we know the starting place of yields today is 96 percent correlation. the expected return over the next five years, if you are buying high-quality fixed income assets, over the next five years you should expect to earn 4.5% from the instrument or security. that is a really attractive

starting level for yields for a fixed income today. very low volatility asset with a high return. contrast that to equities, which are potentially higher return, but fixed income today is actually offering a lot of value, so we feel comfortable buying at these levels. scarlet: you mentioned volatility. the vix and move indexes really stayed elevated in the lead up to the u.s. election and since then it has really settled down. do you see any scope for reignition in volatility? erin: certainly, if we were to see economic or inflation volatility increasing, that would, i think, incite more volatility overall in the equity market and in the bond market as well. in an environment where we have seen both economic volatility and specifically inflation

volatility mitigating, it has led to a more muted to environment overall. which isn't to say that we won't see bouts of policy uncertainty. that's what i would be keyed on and focused on in terms of the drivers for the next year. scarlet: what are your assumptions with the federal reserve? it began the rate cutting cycle with a jumbo cut in september. how many more cuts will depend upon data and whatever the trump administration does when it comes to trade policy and tariffs, almost guaranteeing that the central bank will be reacting behind the curve, not getting ahead of anything. how are you thinking through that? erin: the reserve has done a good job in discussing the fact that they are in data dependency, but the trend is for further interest rate cuts. what the market is pricing in, getting down to 4% next year, most of that will be frontloaded

in the first quarter of next year. it is probably likely pretty accurate and pretty close to, you know, where the fed sees the right path going. that is really because even with, even if we do see inflation pick up a little bit in the first quarter of next year, the rules still suggest that the fed should be cutting 75 more basis points, if not more, in order to get back to a more neutral level. we still have, you know, very elevated rate policies, despite the fact that we have seen both growth and inflation fall back down to more normal levels. i think that there is still a decent scope for the fed to cut at least three or four more time is early next year before taking a step back, pausing, and seeing how policy impacts the data. scarlet: summing up, multi-asset portfolios, if you want to be

exposed to equities and fixed income, you favor slight overweight to the u.s. for stocks. fixed income, where do you want to be? erin: firstly, we really like curb steepeners. particularly on the five-year part of the curb, -- curve. as the fiscal deficit continues to weigh on investor concerns, the curve will steepen. particularly as interest rates come down on the front-end. but the elevated risk of fiscal uncertainty stays high on the backend part of the curve. we still have a preference for owning x u.s. over u.s., like australia and, to some extent, canada, who seem to have more scope to cut. to some extent, europe as well over the u.s., overall maintaining an overweight duration across portfolios. scarlet: good stuff. erin, really appreciate you

joining us today over from pimco. on bloomberg markets, coming up, a shrinking list of treasury secretary and consequences for apollo if mark rowen is picked for that role. we have the latest from washington, next. this is bloomberg. ♪

new projects means new project managers. you need t. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire scarlet: this is "bloomberg markets." president donald trump met with marc rowan yesterday, who had flown in from hong kong. a former try economic advisor

joined us yesterday to talk about why the process is taking as long as it has. >> this is one of the most important pixies going to make, getting it right is important. there's plenty of time. president elected knows getting the right person is more important right now than getting it done today or tomorrow. scarlet: wendy benjaminson is covering the trump transition. getting it right is important, it is ok to take more time, according to gary. what is the latest on what the short looks like? wendy: well, as far as we know right now, and remember, it's trump world, so what seems to be certain never is, but right now we are looking at the apollo ceo, marc rowan, kevin warsh, and scott percent, all three of whom have interviewed at mar-a-lago. the reason we believe it may be

taking longer is, as gary cohn said, it's a very important picked it will dry the economic agenda. but trump also wants someone who will -- to wall street will be comfortable with, who will buoy the markets. he really feels he's never been accepted by the new york financial elite and he really wants their approval. on the other hand, he needs to satisfy his base voters, who want him to embrace cryptocurrency, who want him to embrace high tariffs. finding someone who will do both of those is kind of a neat trick , to find someone who fills all of those aims. so, in the end, if none of these very high profile guys can assure trump that not only they will be loyal, they will like going on tv, they will embrace cryptocurrency in high tariffs, he may go to foxbusiness or something else and get one of the gabbard rfk matt gaetz kind

of appointees. we just don't know at this point. scarlet: he could always go the unconventional route, as he his proven he is capable of it. wendi, thank you for bringing us that context. wendi mentioned marc rowan, if he becomes treasury secretary it could present a number of opportunities and complications for apollo. warrant -- laura bonita has reports on the industry and is here with more. if offered the role, marc rowan is likely to take it. what would that mean for apollo? he's only been at the top for three years. >> that's right, for the first time there would be a non-founder leading. there is a deep bench of management, with john zito on credit and the connected equity of matt and david. it's a pool of expertise they can draw on who have been there

for many years themselves, building up big growth engines. scarlet: sounds like they have a deep bench. has marc rowan really put his stamp on the firm? >> 100%. he went head-to-head with hedge funds, and now they are a huge at -- lending machine that is the envy of wall street and are pushing into investment grade assets spanning multi-trillions. they are pushing deeply into that with a huge presence elsewhere, bringing the assurance firms in. scarlet: wendi talked about how the future treasury secretary would need to have a view on crypto. if mark --marc rowan becomes treasury secretary, what would that mean for private markets? >> that's an interesting one, he would have a lot of sway over private markets and how they function. he has often spoke about

retirement plans and how we should asset more yield to private equity to get more for your buck. private -- private equity could open up, that's one to follow if nominated. scarlet: fantastic, laura bonita has, thank you for joining us. staying on that private markets theme, next is our weekly money undercover segment and we have david rosenberg from oaktree capital management. this is bloomberg. ♪

scarlet: this is "bloomberg markets." this is our weekly segment where we cover the unique challenges and opportunities facing alternative investments. i want to turn things over now to lisa abramowicz. lisa: thank you. we have been talking about the golden era for credit, spreads

on high-yield bonds being the tightest they have been since 2007 with everyone piling money into private credit funds. joining us now to talk about whether things can get even better, david rosenberg, who cochairs the high yield investment strategy at oaktree. david, thank you so much for being here. david: thank you for having me. lisa: is this as good as things get? david: the beauty of credit is you are getting contractual return. for me it's about the yield i'm going to earn and will i earn it right now? if you can get around 8%, that's pretty attractive, so we are in a good place for it. lisa: as a student of howard marks, i have always read memos about the pendulum of fear and greed, risk versus reward. where are we on the pendulum right now? david: i think we are getting to the point where people for a long time were starting to get really excited about how much better things could get in the

economy with rates going lower. pre-election, there was a prediction of a november rate cut, four cuts before the summer of next year and the growth it was going to spur. i always remind people that the world that justifies six rate cuts in less than 12 months is not a happy place. i think the market is coming around to the fact that maybe they were too excited about the stimulus coming and now you look at the markets predicting maybe three rate cuts between now in the end of 2025, that makes more sense. people are starting to get a bit more balanced in their expectations. lisa: as long as benchmark treasuries don't go higher, yields can maybe hang out with what people call goldilocks. but what happens if benchmark yields start to rise and people start worrying not about how much the fed is going to cut rates but if we start to see a greater degree of inflationary revival? david: it's something that you

have to think about. a trump presidency, for example, in every campaign speech, tariffs came up. that's the definition of inflation. cutting taxes creates deficits, inflationary. there are factors out there that in my opinion are more likely to slow down the path of rates going down versus going up, but it is something you have to keep an eye on for sure. lisa: the other issue for the past two years has been the golden era of private credit. record amounts of money being raised, credit overtaking private equity and other investments at a number of big, private firms. i'm wondering if the pendulum has swung too far and if you see greater value in public markets at this point over private ones. david: it is something i think has started to swing. the market went from 500 billion to 1.7 trillion in a couple of years. i have never seen a market grow that fast. one of the many things howard marks has taught me, when the

market grows that fast, deploying capital becomes the chore. we started to see this in the market where a lot of the things that we would struggle to get done in a liquid market, private lenders would show up and say let me take it, i have all of this money to deploy. the risky deals are finding their way to the private markets. i think that when he think about private markets, it is important to bifurcate them. there are pockets of private debt that our amazing opportunities. rescue financing will be an amazing opportunity done most likely in the private markets, but as a whole it is clearly riskier than it was. lisa: you say that private rescue financing is going to be attractive, but my thinking there is that there will be a wave of distress coming in. how far out is that given the fact that you just laid out a picture of a really benign universe. the 8% coupon sounds great. lisa: the reality is i don't

expect to see a pickup in the near term. one of the things you see, and this is one of the things that private debt did for the markets, refinanced, now there's a runway and most companies don't default the day after they get new money and there will be a lag in a lot of this going through. if you think about it, and i have been accused of being a cynic before. i hit -- i prefer a professional pessimist. but if you look at 2000 18 and what private equity firms were doing, simplistically the model was -- i need to buy this company, doesn't matter what i pay, i just have free money to finance it. multiples went higher and higher on what firms were willing to pay and when they did it, it was with floating-rate debt. now the costs of that debt has essentially doubled and that has to eventually come home to roost. lisa: you talked about public markets having the same advantage because the same

amount wasn't coming in and there was a lot of financing. there has been quite a lot of discussion of m&a picking back up if the shackles are released. do you think that will unleash a wave of debt sales next year that could offer opportunity and risk? david: i really do think that's coming. when i talk with bankers and companies, the theme i kept hearing was -- no one wanted to do m&a big for anyone new who was winning the presidency because you need to know the regulatory environment. the general consensus is that it will be less stringent in the expectation is that you will see a pickup in m&a. there will be a lag is the market slows down through the holidays, but in january of next year there will be a lot of pent-up demand coming into the markets. lisa: given the fact that you think public markets have an upper hand, do you see the total number of returns coming in above those of private markets? david: that's a good question.

i think over the next year, it will be very similar. the thing that people love is there is no mark to market. i tell people, that doesn't mean the value hasn't changed, but i think that the beauty of fixed income -- i had this count -- conversation with howard marks many times, you have to figure out growth rates, terminal value multiples -- it's easy. people say what you think i'm going to earn? i say about 8%. i believe that right now we are in an environment the defaults and is benign on the private and public side where the economy and balance sheets are generally in good shape and the problems are those of the recently refinanced. lisa: david rosenberg, thank you for being with us. scarlet: lisa, thank you so much. coming up, the end of 2020 four is going to be one of the wors 0

times in u.s. farming. this is bloomberg. ♪ drop everything and get some magic of your own during the xfinity black friday sale.

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scarlet: welcome to "bloomberg markets," i'm scarlet fu. quick check on the markets, the s&p 500 advancing, adding to gains, up almost .5%. the magnificent seven remain under pressure, the outlook for nvidia was disappointing and google continues to be dragged lower over concern of what happens with that doj proposal that they sell off their web browser. the 10-year yield went up slightly, 4.4 1%. bitcoin, of course, we have been watching that rally.

it continues today. it got past 98,000 dollars. we know that the incoming white house is considering appointing some sort of bitcoin or crypto czar, giving those currencies a bit of extra momentum following the recent election of trump. we continue to keep an eye on these developments, along with headlines out of washington. matt gaetz has withdrawn from consideration as attorney general. he made the comments on his withdrawal in a post on x, owned by elon musk. i want to go to kailey leinz, cohost of "balance of power," for more context. matt gaetz is now the former congressman from florida. he resigned from that post in preparation for his confirmation hearing, isn't that right? kailey: yes, he resigned in the almost immediate aftermath of him being named at the designate attorney general and he resigned specifically from this current

congress. we have remaining questions as to whether or not he will tick -- take the seat he was reelected to in january, especially considering the fact that he has withdrawn his ability to be considered for the attorney general post. keep in mind that this comes one day after the house ethics committee found themselves at a stalemate, if you will, on what to do with the report that was looking into him around allegations of sex trafficking and drug use, many of which have resurfaced lately, including from the attorneys of some of the alleged victims in this. essentially what he has said here is that after the news on the hill yesterday in which he was with jd vance going to a number of republican senators, he said it was -- it was clear that his confirmation was becoming a distraction from the critical work of the upcoming administration, which is why he has withdrawn his name from consideration. what happens to him from here? does he try to take his seat in

the 100 19th congress? who will donald trump appoint as attorney general instead? jake layton is on the short list , but was named two other roles. donald trump's own personal attendant -- attorney who has been defending him and his ongoing legal cases, todd blanche, had been nominated to deputy ag. we will see if he is selected for attorney general or where the president-elect will be going from here. scarlet: one of the big questions around his nomination is what happens to that sexual misconduct probe that the house ethics committee was undertaking and was set to release a report on? is that going to happen still, or did, because he resigned, was it put to bed immediately? kailey: that's what mike johnson said should happen, because he's

now a former congressman, the report on a former member should not be released. the ethics committee met on that yesterday. the committee is evenly split on partisan lines and they couldn't find consensus on the way forward yesterday. the line we heard from the republicans in congress is that because the ethics report is not finished, it should not be voted on to be released. according to a ranking member, the highest ranking member on the committee, susan wild, who spoke to reporters yesterday, said the committee would be meeting on this matter again when they return from thanksgiving recess. at that time we might have more information on whether it will move forward in its entirety and potentially released. now that he is no longer a candidate for attorney general, there might be a question as to whether the actual contents of the report still matter. scarlet: really good points. one thing about matt gaetz,

because he was so controversial, the idea was that it would happen in a recess appointment. now that it's been withdrawn, that's not an issue for him, but there are other controversial picks. what do we know about how far the senate is willing to let president-elect go with recess appointments? kailey: the majority leadership coming and has said they want to do their duty on giving due process, meaning that by and large the people nominated will likely get through the senate. there are a few exceptions, some of the more controversial nominees, like rfk junior to lead health and human services. based on his backlash around vaccines and abortions. then there is tulsi gabbard, number -- nominated for intelligence. the intelligence committee may have difficulty with that nomination. the one in focus today, spending

time with senators on capitol hill, defense secretary nominee, pete hag seth, facing allegations of sexual assault, putting questions up around his candidacy with her -- candidacy for the role and his qualifications for leading the u.s. military. there are a number of nominations they could face a big hurdle for confirmation. matt gaetz was taking a lot of attention and scrutiny away from those people, but now that he's out the spotlight will turn back to those folks, scarlet. scarlet: it's very important to keep that in mind. kailey leinz, you have got your work come out for you -- cut out for you. matt gaetz, withdrawing from consideration to be attorney general. seen as a defeat for conservatives, who had really wanted to overhaul and perhaps we make the justice department under a new administration. this is bloomberg.

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scarlet: this is "bloomberg markets," time for the stock of the hour. bj's came out with earnings this morning. shares are near record highs as they boosted their outlook and announced their first membership fee increase in seven years. we are also waiting for ross store results after trading today. for more on that space, let's bring in laura. always great to see you. bj's, beating the raised quarter. i wonder if it is convincing, given the one time items and noise, like stacked inventory because of the port strike, and

a legal settlement in there as well. it was messy -- laura: it was messy because the guidance was weak, but clean as well. if you stick out -- strip out all the gas, what people are trading up on is the membership fee increase for the first time in seven years. it should be especially beneficial in it all flows to the bottom line. scarlet: absolutely, as with costco as well. this increase came a bit sooner than some analysts anticipated. what does it suggest about the pricing power of warehouse clubs? laura: we are calling the timing exactly. they usually follow costco and we did it within three to six months. we have seen so much inflation and the consumers have really come to rely on them. traffic trends are good. 80% of their customers are on

auto renew. i think you will see less churn the normal. scarlet: what does this tell us about what costco might report in december? i know it's not exactly like to like, but they have a similar business model. laura: some say it's a better business model. since they rolled out the fee increase, they have seen no churn. they continue to file on -- fire on all services -- file on all quarters. scarlet: how much can we read into what tjx and marshals told us about what ross stores might indicate? laura: t.j. maxx had a little bit of a slower quarter, but it was driven by the weather. ross still does 30% of their sales in california alone. scarlet: not counting on winter wear. laura: right, their customers

get cold at 60 degrees. not waiting to buy a hoodie. ross will probably perform well. the other encouraging thing from tjx is that since it got cold in the northeast, sales have picked up. scarlet: so, as long as the sales get booked, it doesn't matter whether it is the fourth or third quarter. my other question is about expansion at tjx. management laid out a plan of another 1200 stores. is that aggressive? will it cannibalize sales from existing stores? laura: thinking about the history of this category of retail, at their peak department stores were 25% of all sales for apparel and accessories. if you believe like i do that off-price is taking share away from department stores, they could have a chance to double in size as a group again. so, we don't think it is aggressive, although we are watching that international

expansion as it might mean they are looking to a global market as opposed to a u.s. market. scarlet: all right, laura, thank you so much. we are waiting for ross results this evening. we want to get back to the breaking news we told you about earlier, matt gaetz withdrawing from consideration for attorney general. more on that story, coming up. this is bloomberg. ♪

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scarlet: we want to reiterate the breaking news, matt gaetz withdrawing from consideration to be u.s. attorney general, seen as a defeat from conservatives who wanted him to remake the department of justice. the president-elect made comments on this, saying that matt gaetz didn't want to be a distraction for the incoming

administration and that president-elect trump appreciates his efforts in seeking approval. this is a commented that he made on his social media network, true social. let's bring in wendy benjaminson, who has more from washington. wendi, matt gaetz does not have a job right now because he resigned from congress in order to push forward this nomination as attorney general. as kelly told us earlier, that was for the current session. the next session in january is a different story? that's right. and he can't even officially resigned from this congress until january 3, so he announced an intention to resign and they are not doing much right now. they are all for thanksgiving, out for christmas break. there wasn't a whole lot of work to do anyway. but he was reelected by the people of his district in florida and he may in fact plan to show up for that job in january, on the sixth, when the

new congress starts. you know, his tweet, his posting on x announcing that he is withdrawing, suggesting that his meetings with senators didn't go well. he posted it as they had a lot of talks and he appreciates the feedback and is now withdrawing. what happens into the sexual misconduct investigation? i know it's been put to bed now that he has said he is withdrawing -- excuse me, resigning from congress. does it not happen anymore? whether or not he returns in january? well, it's up to house republicans. if he expects to serve in the next congress, the house ethics committee may decide to release the report in full. seems like most people now know what it says. they may decide to. or they may decide as they have before to just move on, since

he's not going to be attorney general of the united states. recapping what trump said, he posted on truth social saying that he appreciates the efforts of matt gaetz in seeking approval to be attorney general, saying he was doing well but at the same time didn't want to be a distraction for the administration that he has much respect for and that matt has a wonderful future and so forth. wendi, who else is on the shortlist to be the new attorney general? does he revive the candidates he was considering before matt gaetz? he might. or in a sort of unusual move, he announced one of his own lawyers from his criminal cases in new york and elsewhere, he would be the deputy attorney general. that may have been a failsafe to now elevate todd blanche. otherwise, there are any number of people qualified and not, who he has considered to be attorney

general. don't really know who they are at this point and how much that list has changed. he does have todd blanche waiting in the ring -- waiting in the wings. the doj is hugely important to the trump agenda because he has a lot of things he wants to do when it comes to immigration policing and hot button social issues and is looking for the doj to help carry that out. wendi, really appreciate you being with us there from washington. all right, let's transition to real estate markets. a key issue for the incoming administration. for more on that, i want to bring in picasso spencer and abigail doolittle. can you kick off with a brief discussion on what it does and how you plan to move it forward? >> we take luxury vacation homes like the one behind me and we fractionalize them. you can purchase 1/8 of this home for $1 million and we do

property management. we have closets on the outside to keep your things in. we have sold billions in picasso's and that's how it works, we have raised 200 million in venture capital and individual investors can purchase shares. >> i understand that today was her first ever earnings report release? can you talk to us about those results? >> we are a because i public offering now. our semiannual results this morning for the first half of 2024 were stellar, despite a challenging real estate market backdrop. $88 million in real estate sales, up year-over-year. gross profit, up year-over-year. we reduced our eva. loss.

and the picasso fractionalization model provides the ability to own a home that you might aspire to but don't want to or cannot afford all of. abigail: you are no stranger to the public markets and you just said picasso is a quasipublic company. what are your plans to take it public? >> that will be on the roadmap. we created the company with that intention. when we went public, i think we took a public almost 10 or 15 years ago, there was no reggae model, that was created by the jobs act. we love it. we think it democratize his access to investing. back in zillow days, we would have done around after the last venture capital round before the ipo. it broadens the investor base and is a part of this continuation of the 20 year trend of financial innovation

around democratization, from the lowering of stock trading costs to the proliferation of etf's and crypto. it's all about leveling the playing field and providing access for individual investors to participate things that particularly only big capital firms get access to. that is how we think about this offering. in all likelihood, ipo will be in our future, but we will have to wait and see. abigail: if you were going to tap the ipo market right now, it's at a standstill, down from the average of the last 10 years. why is this? when do you see it opening up? you think the trump administration will hurt or help? >> i think it will help -- ♪ ♪ ♪ something has changed within me ♪

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email notifications and helping us determine which homes we turn in. there's plenty under the hood for many of these, but it might not be front and center. abigail: you think the trump administration might be good for the capital markets and ipo's, but what about real estate rates going higher? he could press the commercial average real estate buyer. >> that's a great point. mortgage rates are not coming down in concert with rates the way you might expect because

treasury yields are increasing because of, wait for it, the expectation of increased inflation. this is of course ironic, because the trump campaign ran on the fact that biden harris had high inflation. this is the market telling us that the trump administration is going to create a lot of inflation through tax cuts and increased spending. that is why mortgage rates have not come down in real estate the way that we would expect. there is another thing going on there, construction costs. if there are reduced regulatory hurdles, it will create more homes that we badly need. there are puts and takes to all of these things. the immigration policies of potentially deporting undocumented workers could drive up labor prices on construction. the homebuilding industry is in a wait and see mode, excited but concerned about reduced labor. scarlet: really appreciate you joining us today, spencer, cofounder of pacaso, with

abigail do little for that conversation. matt gaetz, ruth drawing from consideration to be attorney general. -- withdrawing from that consideration to be general -- attorney general. this is bloomberg. ♪

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

live from washington, d.c. >> matt gaetz is out. welcome to the fast as show in politics as the former, -- congressman withdraws his name to be in consideration for the next attorney general of the united states. i'm joe mathieu. welcome to the thursday edition of "balance of power." then news is moving quickly. matt gaetz saying he has become a distraction, referring to the ethics committee investigation into him, a report that we have still not seen. kailey: and that's one of the questions in the aftermath of this news, what will happen to that report? he is now a former congressman, but that's our second congress, he resigned from the 100 18th congress. when the 119th that he was reelected to takes its seats in january, will he try to claim it? third, who will be the nominee instead? will there be