>> welcome to "bloomberg markets." i'm scarlet fu. the latest inflation report cements cutting rates. stocks getting a lift here. the s&p 500 up .9%. this looks like a rally here. certainly the big tech names are at the leading edge of that with big tech, the biggest of the big tech, of up by 2.4% on the day. the two-year yield, which is most expensive to central bank policy, here by one basis point, but it's been stuck around these levels. a quick mechanics here of the looney.

it is jumping versus the dollar. this is red because the dollar is losing ground versus the canadian currency much this is after the bank of canada cut interest rates by 50 basis points. that was pretty much priced in. what was not necessarily priced in was the bank of canada anticipating more gradual cuts going forward. so that explains the move there. let's also highlight a couple of movers at midday. we'll start with big tech. apple and broad cam. both are higher, broad cam by 5.5%. this is after the information reported apple is working on a a.i. chip with the company. the new chip expected to be ready for mass production by 2026. on the flip side, we look at shares of macy's. they are down after the company trimmed its profit outlook. the department store chain concluding its investigation into a misstatement of expenses by one employee, which it says that employee evening alley hit some costs and the damage is $79 million to gross margin in this

current quarter. and i also want to flag shares of microstrategy. a mixed picture here for these names. microstrategy up. both are expected to be added to the nasdaq 100, according to bloomberg intelligence. the announcement possibly coming after the close of trading on friday, and of course, that gets everyone excited, because if they are added to the nasdaq 100 and therefore they'd be added to the q's, that would generate force buying by index funds, especially tracking those. turning now back to the inflation story and the federal reserve, earlier today j.p. morgan's david kelly gave us his take on those numbers. >> when the federal reserve looks at it, they have to look with one eye on what's really going on in the economy right now, and one eye on what might be coming in terms of policy going forward. i do expect they'll be a little bit more cautious than the one

in september. i think they'll take some rate cuts off the table here. so right now i'd say the story is still benign. it's cooling very slowly, but still cooling. scarlet: joining us is stuart paul. i look at the numbers, and you can look at it in different ways, right? whether it's growing overall or how it compares to expectations. when you compare it to economists' expectations, it's pretty much bang in line. people expected prices would grow, and that's exactly what they d. >> we saw headline and core price measures rising 3.3% month on month. that was enough to boost the annual headline measure to 2.7% on an annual basis, keeping the core for the third consecutive month at 3.3%. if we look at the monthly rate and annualize it, it's still running way above the fed's 2% average inflation target. not the sort of thing that is going to give the fed a ton of

comfort. under the surface, you see some of the contribution to headline and core inflation came from unfavorable seasonal adjustment factors in autos and within housing, which is a major lagging indicator, but a major contributor nonetheless. we saw favorable disinflation in rents and owners' equivalents of rents that could be enough to keep the rate cut on the table next week. scarlet: the right things are going down in price? >> that's right. the right things are going down in price. some of the wrong things that went up are things like food prices, gasoline prices, hotel basis. they all contributed to mole headline inflation. the fed can mostly read through these takes and take morer a cue from housing, for example. >> because the fed doesn't look at food and gasoline, because it tends to be volatile. that's their day-to-day life. if the story that these numbers tell is that inflation is still

very much present, why does this cement expectations the fed will go ahead with rate cuts later this month? >> because everything came in line with expectations, and we see that little bit of a positive twist on the housing side, the thing that's going to be most front of mind for the fed as they meet is the up tick that we saw in unemployment. if they're keeping in mind the pace of hiring, and they're making their mental adjustment for some of the mismeasurement that's been going on in the bureau of labor statistics, which we've heard jay powell mention, the pace of hiring after making those mental adjustments is probably about 40,000 to 50,000 per month, it's more rapidly cooling than inflation, with a labor market cooling as it, is the fed can still cut in december, but will probably slow it'll pace of cuts so that it can exert a little bit more pressure on inflation, once we get into next year.

scarlet: to address the employment part of the mandate, even as inflation seems to be stalling a little bit here compared to where they want it to be. stuart, thank you for providing us the nuance we need to understand the inflation numbers. stuart hall with bloomberg economics. let's turn from the fed to the treasury department, where secretary janet ideal e yen the is touting the importance of open communication with rival china at all levels of government to avoid any kind of misunderstanding. she spoke to bloomberg's david guerrera in washington. take a listen. >> it's important to have ongoing communications at all levels from the president, and she talking to senior u.s. officials to a staff that need to communicate. just having open channels of communication is valuable, and i believe it will be seen as continuing to offer value.

these are channels by which we can make clear what we're unhappy about. where our concerns are and why we have them. we have significant concerns about russia's economic policies that we discuss in these channels. it's also the case that we have shared global interests, whether it's in climate change, combating pandemics, dealing potential financial disruptions that could affect global financial markets. we're also using these channels toe build trust for cooperation, so that we can work together, where our interests coincide. there's no question that we have serious concerns, both from the national security point of view and a broader economic view,

where china's behavior. but nevertheless, it's the two largest economies in the world. it's critical to have open channels of communication. it helps avoid misunderstandings. we've used these channels when we've taken action, like export controls other recent investment restrictions to explain what we're trying to accomplish to avoid misunderstandings that can worsen the relationship needlessly. >> you have a particular insight into what makes your counterparts tick. i imagine through those conversations that you've had, we've seen the president-elect talk about large universal punitive tariffs. do you have any unsight into how they might respond if they are threatened with something like that? >> well, i really don't want to make a forecast. many countries, when they're

faced with union hat cal actions of that sort, look for ways to retaliate, and my guess would be that they would do that. we have areas of concern where i've expressed repeatedly concerns with overcapacity that is developed in chinese advance manufacturing, industries in clean energy, semiconductors and the like. we think it reflects active, large subsidies that are flooding the world with exports and threaten to drive our firms out of business in areas that we think are critical to our own future. we've put in place tariffs now. they're strategic. they affect $18 pillion worth of trades, certainly not all of our trade with china. and we did it to make sure that

china's actions don't undermine our own plans to support these sectors, but broad-based tariffs, almost all economists agree that what they will do is hurt us by raising prices, possibly substantially, and making it more expensive for firms that need inputs from china to be able to acquire them and harm our competitiveness of firms that we lie on those imports. we've seen a strategic approach, focusing narrowly and a broad-based approach. i have serious concerns with, as most economists do. scarlet: that was the treasury secretary. for more on this interview with yellen, let's bring in david, who is live in washington. david, you also asked janet yellen about the u.s. approach

to russia. she sees a scope for more sanctions against the country. >> yeah, bloomberg reported overnight the treasury department and the white house looking with european counterparts on sanctions russia more when it comes to oil exports. i asked if she could confirm gi. it's part of the that other agencies are trying to pioneer, where we're on the precipice of a change in administrations, and that is fortify policies they put in place to trump-proof them, if uptook protect them from what might be changed. the secretary has really cared about this and worked quite hard on some policies to support this. we'll see. i think the answer was stay

tuned and see what happens here. but she definitely identified the fact that russia's economy has been as resilient as it has been because it's still able to sell energy. scarlet: the timeline is shorter and shorter, because she leaves office on january 20, along with the rest of the biden administration. what's remarkable about janet yellen is that her biography includes a stint at the fed, whether it was as vice chair or chair for so many years. and i know jay powell will be staying on as fed chair because his appointment lasts through the start of the new trump administration. there's been a lot of talk about this idea of a shadow fed chair from the new treasury secretary, scott bessent. you broached this with janet yellen to get her take. what did she say? >> i want to bring your experience having worked at the fed and white house and treasury department as well. i asked her, when you hear so essent talk being about this

shadow sharp share. you wanted a new regiven at the o. ity would that be annoying, a distracted? she indicated something else going bad. it's something she's thinking about as the first and only woman who headed that industry, thinking about its itself. i asked her as a followup, are you worried about fed independence, it'll based on comments we've heard from the president-elect and other advisors say the president should have a voice in how the fed sets policy. she's very confident in the fed as an apolitical institution as when politics isn't considered, and said she feels like it will

continue on that path going forward. scarlet: let's hope so then. gaffed, thank you so much. you can hear more from david on the big take podcast, which is available on apple and spotify. mother highlights from this conversation with janet yen throughout the day. coming up, we'll look at cigna underway to force drug middle men to sell their policies. men to sell their policies. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management

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>> it's silly we don't pay for what is already known for a primary contributor to poor health, which is excess body weight. but people have different

motives and incentives. as you know, we re-enroll commercial insurance every year. i don't think insurance companies have your best interest at heart. maybe that's tough to say, but they really think about it in one-year increments. the benefits surely will play out over a longer period of time. maybe your employer has a stronger interest in your long-term health. that's probably why many have stepped forward. scarlet: that was eli lilly c.e.o. david rick speaking candidly with david rubenstein yesterday about the incentives behind health insurance providers and perhaps their willingness to pay for those weight loss drugs. a bipartisan coalition of u.s. law makers, including senators warren and hallee, have drafted legislation that would force drug middle men to sell pharmacies they own. i had to do a double take. elizabeth warren and josh hallee in the same room together? >> yeah, it is an interesting

group of lawmakers that put forward this proposal this morning. it would force some of the largest healthcare companies in the u.s. to divest pharmacies that they own. scarlet: which specific companies are we talking about here? >> the three big ones are the cvs health, cigna group, and united health group. these are parent companies. three largest pharmacy benefit managers, the prescription drug price middle men that also operate, in some cases retail pharmacy stores like cvs drug stores or also mail order or specialty pharmacies. scarlet: an argument this bipartisan coalition of senators and congress people are saying is that it's forcing prices up on consumers. >> yeah, so this is in line with kind of long-standing criticism and complaints we've heard of the pharmacy benefit management industry that they have

conflicts of interest when the pharmacy benefit manager, bpbm, is setting the part. at the same time, another company owned by the same parent company is doing that dispensing. the criticism is that they can set prices to their affiliated businesses. scarlet: was this a surprise to the industry that this bill has come out, or sorry, that they're drafting this bill? >> yeah, the draft legislation was reduced, released this morning. it's expected to be introduced today. i think the criticism is not a surprise, but fares are down pretty sharply this morning. listen, we're in the last couple of weeks of congressional session. this is not going to advance anywhere in the current session. but i think the fact that you do have strange bedfellows like warren and hawley behind some effort is giving some investors pause about what it means, what

the implications are for the business. scarlet: you mentioned that this probably won't get done in this current congressional session, so it will be pushed to the new year, or perhaps we're getting a preview, but do we have any insight into what the incoming trump administration thinks of the role that these big health caps have, vertically integrated healthcare companies. >> it's a good question. i think it's still a little bit of an unknown and will depend on some of the appointees who are confirmed, and the first trump administration, the health and human services secretary at the same time, alex azar, who came from the pharma industry, was a vehement critic of the pharmacy benefit managers. they tried to advance some policies around restricting the use of rebates and other policies. that didn't really go anywhere once the biden administration took office. i think given the appointees,

r.f.k. jr., and some of the other folks who have been suggested for top health agencies, i think we're still waiting to see what the policies will be. scarlet: maybe that's pushing down the shares, because so much is still up in the air. great to speak with you, thank you so much for the reporting on this. bloomberg news healthcare reporter. we'll continue to follow the developments in this story. coming up, we're going to look at etf's. for this week's report, we're looking at a total assets reaching $10 trillion. this is bloomberg. ♪

scarlet: this is "bloomberg markets." it's time for our weekly etf report, where we check on the latest trends tied to exchange rate of funds. and this year's brush into etf, stocks going down with investors plying over $1 trillion into u.s. funds. assets held by etf's in the u.s. topping over $10 trillion this year. joining us now for more is our asset reporter, ace bell lee, who seems to publish a etf story on a deem basis. november was the turning point for etf flows, right? >> it was, because we saw a lot of million dollars flow into funds, because that's really when the trump trade and when trump was elected president. people were all in, because we know that trump is good for markets. even before that, we've seen

such a banner year. $1 trillion in inflows, and record launches this year, around 655, or maybe if i don't count today, it's over 660. you really see a lot of investors really go all in on etf's. even conversions, we've seen a record. we have a 55 count. it's really just a year of etf's. i feel like every year we say that, but this year so far is the best year for etf's. scarlet: break it down in terms of what kind of etf's drive it. you mentioned small caps and crypto, but they got a tail wind around november. up until that point, or throughout the year, what's been the theme? >> 80% of the launches this year were etf's. that's where we saw most of the flows. passive is one thing and everything else is active. single stock leverage is also active. we saw a lot of activity there from the likes of microstrategy, tesla, and we had a new etf launch today, which is berkshire hathaway. that makes me think, who would want a stock like that, because it's not really volatile, but retail traders do.

i'm excited to see the volumes at the end of the day, but really active is what drove it, and crypto, i would be remiss if i don't say that. scarlet: of course, and it seems like everybody has a version of etf. who is driving the issuance of new its sets in i'm assuming the big three really played a big role. >> the big three played a big role, but in the past two years we saw their dominance decrease a little bit. it's impressive, balls the small players are gaining traction. they're standing up to their own, and all these initial derivative-based, really flex funds are mostly from small issuers, because the big ones play it safe. they don't really launch the day-trading activities, but it's really interesting, especially the crypto fund. i have to repeat it, because in just one year, they saw $120 billion, over 50 crypto-related etf's. if you compare that to commodity-based, they only have 160 billion, and they've been around two decades. scarlet: isabelle, thank you so much.

remember, you can catch us each monday on etf i.q. coming up, we'll go to the goldman sachs financial conference. ♪ ♪ ♪

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scarlet: welcome to "bloomberg markets." let's check on where markets stand right now at midday. you have the s&p 500 higher by .9%. benign inflation report pretty much sealed the deal that the fed will cut interest rates in december. that combined with the uptake in inflation we got earlier this month really cementing those expectations. the two-year yield very sensitive to fed policy. it is moving down just slightly, 4.13%. the mag seven leading the way. the nasdaq 100 also at a record

high. that seems to be a daily event these days. and the dollar weaker against the canadian dollar. the looney is firmer because the bank of canada has anticipated or is anticipating more gradual rate cuts going forward. this is after it cut interest rates by 50 basis points today. let's get downtown to the goldman sachs u.s. financial services conference here in new york. we've got over 100 companies from the financial services sector gathering. sonali is standing by with one of them. sonali? sonali: scarlet, thank you so very much. i'm standing by with the co-c.e.o. of blue owl, focuses heavily on private markets. of course, you're a publicly traded firm, and i've seen significant appreciation this year in the markets, when you think about the past forward, is it really going to be tried and true, vanilla, private credit that's driving the growth from blue owl, or is it going to be something else given that you've made so many acquisitions in

spaces outside of traditional direct lending? >> so for blue owl, always a treat to be here with you, for blue owl, three words i would focus on. there is scaling, there is innovation, and there's diversification. those three together i think are the words i keep in mind when i think about the future of blue owl. we're one of the market leaders. we had outstanding results for our investors, our l.p.'s, which ultimately is the customer base. and as a result, that's going to continue to be a great business, but that's about incumbents and leading with scale, and we're fortunately one of those people. that's a great business for us. but when you look forward and backward, that was a great place. 10 years ago we identified that opportunity. 10 years ago we identified private wealth has a channel. that's become a huge opportunity. people almost looked at us cross-eyed when we started it 10 years ago. thankfully we've established great positions there. that's about continuing to

scale. diversification, as you said, we've added products organically and inorganically, by acquisition, and then innovation to me is really the tag word that matters most, which is it's about going before the markets are going next. private credit, it's not that the story has been told, but we know what the story is. what's new and next and important for our shareholders and our investors is the alternative credit business, asset backed credit. it's data centers and digital infrastructure. that's where we're going next. that's where the innovation is really going to come from and the next leg of very attractive growth. sonali: now that you are integrating these acquisitions, what are the numbers to support that growth? i know you and i have talked about asset-backed finance. by definition, the growth would be faster. so what do these growth rates look like in these businesses outside of direct lending? >> i'll use this template or example. think about the real estate business we acquired.

market leader in triple net lease, here's a business where already we have acquisition, our latest fund doubled in scale from the prior one. that's already largely committed, will be back in march of next year, with the next vintage. oak street has tripled as a part of blue owl just in the last few years, and very importantly, through a tumultuous time in real estate, has delivered outstanding results and is perfectly positioned for, again, let's talk forward looking, on-shoring. digital infrastructure, again, in sort of the form we've done today with people like oracle, where we've been able to build data centers out of complexes and own that building, the physical buildings, like we have done as market leader in oak street. that's a perfect template for where we're going with things like the access. we've got it fully integrated. we have a great integrated operation between now our asset backed credit and our direct lending credit. what that means is we can originate, share ideas, share

opportunities, and do in asset-backed credit what we did over the last 10 years in direct lending, which is, we believe, becoming one of the market leaders in that case and probably $7 trillion for market. sonali: when you think about the private credit world right now, there's a new player in town with blackrock's acquisition of hps. what is it it mean to you to have hps has been around, but blackrock also is a new competitor. >> yeah, i'm big on actions speak louder than words, and i have a ton of respect for blackrock. what do i take from it? blackrock has likewise, a knowledge enthusiastic about the fact that private markets are a critical part of the future. that's where the growth is going to be, and again, i always get back to the why. the why is because the private market solutions for the end investor, they work. it doesn't mean every solution by every manager in every moment, but it means the right solution is done by the right

managers that deliver great risk return for the investor. blackrock is by its actions, the biggest in the world, saying listen, the public market, great, it will always be part of an importantsome. sonali: is there a point at which the space is too crowded? >> well, one can imagine such a moment, and i think we're actually seeing it in parts of the overall ecosystem. i think it's safe to say there will be fewer private equity firms five years from now than today. overproliferation. but that's been 40 years, 50 years in the making. when i look at markets like direct lending, they're still very young by the evolution of the opportunity, market share, innovation, and certainly places like asset backed finance, hyper scale data centers, the market leader without a question in helping investors access this very, very interesting stricken

structure way to play. those are new. kind of the opposite of crowded. i get very excited about that. i actually don't think crowding is the concern of the time. sonali: what about the competition? we always talk about banks versus nonbanks. you have the finance markets way open now. what does it mean in terms of m&a comeback that they're expected and the role that and you your rivals have in it? >> the active role of the liquid bank market is a bit of a double-edged sword, which is to say in 2021, they were wide open, and that was one of our business times. in 2022 and 2023, they were entirely closed. that was a wonderful time for probably a different reason, right? there was no alternative choice for someone who wanted to act. probably a bit like the three bears, somewhere in between is pretty good, right? we want there to be a vibrant

market that cat logs activity. the terrific year in 2024, but when i look at 2025, and frankly, i have even more optimism. the missing piece was volume of activity. people just weren't doing enough. too many uncertainties. uncertainty around interest rates, uncertainty around politics. therefore, or related to, syndicated market. we need those marks so people feel the confidence to go do the m&a, do the transaction. so i feel like the setup in 2025, we welcome a vibrant, liquid illiquid market. when markets are fully closed, our spreads are higher. but our businesses deliver a meaningful premium and a great risk return in any markets, and that's working. sonali: you mentioned interest rates as part of the consideration here as well. and there's a lot of question about what they might look like in 2025, particularly in light of the tariff policies put

forward by the president-elect. do those policies concern you at all? do you think that inflation could be stickier than a lot of people are accounting for right now? >> i recall we talked about this probably over the last year and a half. we have had a view that remains our view today. that higher for longer is the path forward. and i say that partly just anchored in this historical reality. rates we're talking about today are not atypical. zero is a typical. no, i'm not predicting specific rate path, and i imagine it will moderate over time, but we already experienced something this time last year. people were talking about seven rate cuts, and we said we don't see it. we don't understand it. we don't see it, because the inflationary pressures were still there. and frankly, in a strong economy, i think we have the good prospects for a strong economy in 2025, and as you said, adding trade considerations and other geopolitical dynamics. there was a lot of reason to think rates stay relatively speaking higher. candidly, no surprise, floating

rate business, we're ok with that result. sonali: really quickly, only have about 30 seconds left, but if today call how many rate cuts, i never ask you this, but if you were rates are higher for longer, how many times do you think the fed can cut? >> i have to acknowledge the beautiful at this of my business, and perhaps it's my own ignorance, but i don't know. i'm confident i don't know. if i knew, there would be a much easier way to execute this business. we have a thousand people, so we can deliver the results. if i knew the path of rates, i'd have a better way. i can tell you this, in a secure floating rate business, which we are, i'm there, because i don't have to make that determination. sonali: thank you so much for joining us here at the goldman sachs financial services conference. this is the co-c.e.o. of blue owl. scarlet, back to you. scarlet: thank you so much, sonali will bring you more interviews as the day continues. we want to turn it over. of

private equity confirm, has passed ad way at the age of 82. bonderman was a billionaire known for his unconventional investment approach, taking on some complex and troubled companies and making successful bets on startups as well. for more on this, let's bring in bloomberg news private equity reporter allison mcneily to give us more context about everything. what is the deal that bonderman is most known for when you look back at his career? >> one deal you can look at is actually the first deal that they ever did, which was the recan'tization of continental airlines out of bankruptcy. that really sort of set the template i think for the investing style that he and his firm became known for, sort of contrarian, complex, sticky bits, but ones where you can really were a good return on your money. scarlet: he also looked at some startups and bet on them early, before they really gained much traction. >> exactly, yeah. so uber, airbnb would be two bets he was known for, for

getting in there early. he joined uber's board in 2013, so well before the company that we know it as today. scarlet: he's part of this generation of finance tycoons who really built up their own firms. i'm thinking joining the ranks of steve schwartzman, henry, david rubenstein, people at the very home of these big p/e firms that are now publicly traded too. >> exactly, yeah. bonderman was very much part of that generation. he founded tpg in the early 1990's. he built it into a firm that has now to this day more than $200 billion in assets under management. it does private equity, real estate, growth investing, credit. and it went public in 2022, and it's really part of the sort of tier of the biggest publicly traded alternative managers. scarlet: when we talk about the approach, that's kind of rooted in his own conventional background. he took a meandering path to finance.

>> he's got an interesting history. he started out as lay lawyer. he went to harvard law school, and then he got in preservation-related causes in the 189 80's, and that caught the eye of the robert bass and his family office, and he was hired to be an investor in the family office in the early 1980's. he made great bets doing that, and eventually he went out on his own in the early 1990's. scarlet: well, thank you so much, allison mcneely, for sharing some of david bonderman's requirements. he passed away at the age of 82. this is bloomberg. this is bloomberg. ♪ i can't believe you corporate types are still at it.

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scarlet: this is "bloomberg markets." it's time for our stock of the hour. we're looking at ex--on-mobile. it is -- exxonmobil. it is boosting spending. the company says it is planning to spend between $27 billion and $29 billion of cash in 2025, with annual outlays rising to about $30.5 billion in the following five years. meanwhile, opec continues to project weakening oil demand. here now to break it all down for success bloomberg's kevin crowley. that sounds like it's going to exacerbate the oil glut opec is expecting. >> that's extra the market is really concerned about. exxon is really doubling down on oil production at a time when opec is pulling back. it's estimated eight million barrels a day of supply that's currently curtailed by its allies. and indeed last week, chevron announced the first cut to its

capital spending budget since 2021. exxon, like it has done a few times in the past 50 years, is really going in the other direction. scarlet: going the other direction, and this is something that investors are asking the company about at its investor day. with oil prices where they are right now, kind of under pressure, what does this plan to increase production mean for oil prices? how is the company thinking about this? >> the company is defending its plans by saying, look, we only produce about 3% of the world's oil supply, but critically it's saying that the new projects that are coming online are among the lowest cost anywhere in the world. so for example, in guyana, where they're spending a lot of its cap ex, it can produce oil very profit abilitily at just $35 a barrel, which is currently lower. exxon says they have a responsibility to develop these projects, and if there is an oversupply in the market, the

implication is that it's the higher cost producers, which would have to step back. scarlet: got it, thank you for explaining that nuance there. kevin with bloomberg news, really appreciation it he covers big energy and, in this case, exxonmobil. we want to shift to an update on a story we've been following all week, the main owner of u.s. chocolate maker hershey's rejecting a takeover offer from montedelez. let's bring in our m&a reporter. tell us more about hershey trust, because this says the ultimate owner of hershey that is making this determination that they don't want to be taken over. >> that's a great point. they're calling the shots here, and just as we saw in 2016 when they reject the other offer from mondelez, they're in the driver's seat. if they don't to want sell and think a bid is too low, they have no reason to do a deal. there's nothing to really exert leverage on them that would bring them to the negotiating table. if we ever see the hershey trust come out and say that they're open to something, i think we

could see a bidding war one day. that's why we keep focus on what is the future of hershey, because eventually maybe something could happen. scarlet: in the meantime, they have the c.e.o. leading the company. they're dealing with their own challenges. hershey has to contend with rising cocoa prices, among other rising expenses. >> they also see some of their competitors are being very aggressive with m&a. earlier this year in one of the largest transactions, we saw mars buy a spinoff of dells on's. -- a spinoff of kellogg's. mondelez has to make some decisions in the future, but they're saying acquisitions are the name of the game, which usually indicates smaller transactions. scarlet: they authorized a buyback program as well. thank you so much. covering m&a here at bloomberg news. we want to shift gears and go from equities to crypto, because for the first time ever, we're actually combining the two.

public trading is underway for shares of coincheck, the japanese crypto marketplace this. comes more than two years after i.p.o. plans were first announced. the debut comes via a deal with thunder bridge capital partners. this is a transaction valued at roughly $1.3 billion. for more on this, we are joined by the coincheck executive. it's good to see you. congratulations on the listing, which follows the merger. it was quite the journey. it took about two years. how relieved are you? >> well, maybe three years. scarlet: three years, ok. >> it was very long time. many things happened in crypto market. and also blah, blah, blah, it was a really long journey, but we made it. scarlet: how relieved do you feel? >> i feel more pressure now. now we have publicly traded company, so we need to create value. it's done. but the more to come. scarlet: more to come, so i wonder if the delay ended up

working out for you, given the outcome of the u.s. election and the surge in bitcoin above $100,000. what do you think about that? >> well, maybe we are lucky, but in buddhism, by the way, there's no concept of luck. in buddhism, we say it's remake efforts, and there will be results. scarlet: it's the result of efforts being made. ok, i guess that's the philosophical way of looking at this. can you explain the thought process or the strategy behind listingn the u.s.? by many accounts, it's kind of behind the curve when it comes to block chain and crypto, except maybe litigation, compared with other countries. what does listing in the u.s., what benefits ask that bring you compared with listing somewhere else? >> we want to be a global company. not only cryptocurrency exchange, but the block chain, many things. in order to do that, we wanted

to have currency. nasdaq trading stock is a currency. by having that, we can be very active in acquiring current, as well as businesses across the world, including japan. that really put us thinking that we should go to that luck. scarlet: access to talent, access to capital as well. >> capital, using another currency, we can acquire companies too. scarlet: well, when people hear about this, one thing they think of immediately, for better or worse, is for the security breach that you suffered in 2018, which led to the loss of half a billion dollars of digital tokens. how much did that weigh on your attempt to list? was that a determining factor in delaying the i.p.o.? >> actually, my company acquired coincheck. so we wanted to be there, but i

doubt we have that started yet. the coincheck was a big company, but unfortunately they got hacked, and that created the kind of opportunity for us to come in to save them, and then we bring in all kinds of internal and everything. and then grow them. and they grew up. but at the beginning, even at the beginning when i acquired a company, coincheck, i was determined to make that company public. it really needed outside checking, so publicly traded company form should be better for the coincheck. scarlet: what assurances can you give investors that those security issues are behind coincheck, that it's not going happen again, some kind of big hack like that? >> well, we worked with the best, strongest, cybersecurity company, not in japan, but from the globe. also, japan, because of that

hack, japanese have created a really robust, established regulatory framework, including security. interesting that hacking made them end that way. we've been running the company in that kind of strict regulation for six years. so we are really strong. scarlet: it helped you strengthen your control, if nothing else. personnel is policy. that's a popular saying. we know that president-elect donald trump has named david sacks as his a.i. crypto czar, and paul at cubs as his s.e.c. chair. i'm wondering if you've interacted with or worked with either of these two gentlemen before that might inform how something like coincheck or the crypto world might proceed. >> i don't know them. so i don't know. but i do see that the u.s. is coming back to this new technology.

the u.s. is so active support over the new technologies and innovation, but somehow recently, not so active, but now it seems they're coming back. which is really good for us. scarlet: what would you urge either of these two gentlemen to do ads the first priority once they can begin moving forward on their agenda? >> i don't really know, but i hope they get, how do you say, the communicate, they get to know people in this industry, and then knowing what's going on, could provide the best kind of device and guidance to them too. so i hope they communicate really good with us. scarlet: good stuff. oki, appreciate you coming in today. congratulations on the listing. we've been speaking with the coincheck c.e.o. and executive chairman. i'm scarlet fu, and that does it

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life from washington, d.c. -- live from washington, d.c.. joe: donald trump's pick for treasury secretary gets his turn. welcome to the fastest show in politics. scott bessent makes the rounds eating with senators who will decide his fate on the same day bloomberg news sits down with the outgoing treasury secretary janet yellen. interesting to hear janet yellen weighing in on the issues we associate with scott sent. tariffs in the shadow fed. kailey: the shadow fed know how had has gone down in the court of public opinion. the current one does not seem to disag or to agree with the person who will succeed her presuming they can get confirmed. scott bessent is trying to lock in the confirmation with his visit to capitol hill and he is not the only one.

we heard from the senate majority leader chuck schumer saying he plans to meet with howard lutnick today and that is not to mention the more controversial pix.