>> welcome to "bloomberg markets ." i am scarlet fu. follow from the fed. let's get a check on where things stand right now. the s&p 500 recovering from yesterday's slide, the worst selloff since 2001. micron's disappointing forecast. the fed's hawkish cut yesterday sent yields higher. we are seeing the two year yield

coming down but the 10 year yield moving higher. what is this doing to the yield curve? it is steepening. now at its deepest since 2022. we are taking a look at dollar-yen. the yen stumbling after the bank of japan kept rates unchanged and the governor signaling he is comfortable waiting before resuming rate hikes. the bank of england came out with its decision, to stand pat. the majority opting to keep the rate at 4.75%. there were three officials who sought an immediate reduction. others reiterated their plan to deliver cuts in 2025. here is andrew bailey speaking about the decision. >> the path is downward. there is more uncertainty. we have to way that carefully. i think the appropriate thing to do at this meeting is to keep the restraints on hold. we will come back for our next

meeting and start it all over again and review the evidence. first of all it underlines the strength of our process. people can take a different view at this point. scarlet: let's discuss all of this with our mike mckee. not just the boe but the boj and the fed. i want to start with data. usually i do not pay a lot of attention to the third revision of a number but this one caught my attention. mike: most people don't but it is a good number. we saw strength in consumer spending, strength in business spending. it sets the table well for the fourth quarter. interesting note, growth for the entire term of joe biden averaged three point 3%, fairly strong.

jobless came in lower, 22,000 lower than the previous week. tomorrow, we get the last big data of the year, the pce numbers. jay powell said he thought they would come in relatively tame. scarlet: for the fed to resume rate cuts in 2025, they need to see fresh progress. mike: it has not been vanquished but it has been installed. he expects progress to continue. we have seen the owners are equivalent start to go down. it should bring inflation lower. it is a bet. right now it looks like they will hold in january and wait and see if they get more data that shows inflation moving forward. scarlet: it is curious that he

wanted to avoid talking too much about the incoming administration and their policies because it is a big unknown but he said some members of the fed had that in mind when giving projections. it is kind of a grab bag. mike: everyone is up in the air -- and it is not just the fed. we heard the bank of japan, the bank of england say no one knows what donald trump will do and what impact that will have not only on the u.s. economy but economies around the world. a lot of this will be reflected in their currencies. . the policymakers are sort of saying, we will all wait and see what happens and see what we are going to get out of this before we lock ourselves into any pathway. scarlet: that is why a lot of people were surprised that the fed moved ahead with a rate cut because the data did not require it to cut rates yesterday if they would project you are rate cuts in 2025 anyway.

mike: the criticism is if you are not going to cut, why did you cut? the fed basically feels we are still restrictive -- that is there were -- if you look at longer-term rates not directly infected by the fed, mortgages -- not directly impacted by the fed -- they have not come down. there is still restriction that holds the economy back. they want to get that down a little bit. wait and see what happens and how far they can go. they might be close to neutral. scarlet: it is a hurry up and way situation at the fed. michael, thank you so much. let's explore this further and get the take from chris grisanti . it is always a pleasure to speak with you. in terms of market action, i want to get your take because stocks are making a dramatic u-turn from yesterday's broad declines.

what is your read on the economy and therefore markets and how they are set up for 2025? chris: hello. scarlet: chris, can you hear me? chris: now i can hear you. scarlet: let me rephrase that. we are seeing stocks make a recovery but treasuries continue to decline at the long end. how does that input change your outlook for 2025 and how you want to be set up in 2025? chris: it is good to see you again. i am as worried about the market as i have been in a long time. i think the short end continues to come down with yesterday's cut but were consensus has it wrong is i think the long end will be considerably higher, pushing toward 5% or past that. we will get a nice, steep yield

curve, the sign of a healthier economy. and a lower 10-year than we have had over 40 years. valuations are quite high. the risk/reward in the equity market is not so great with that scenario. scarlet: where do you want to be? where do you want to be in 2025? chris: i am a stock guy, i want to be in the market and i want to find areas that have been left behind. health care is the whipping boy of 2024. it always gets beaten up in an election year as both sides of the aisle attack prices and hospital costs. with the appointment or nomination of robert kennedy, there are real concerns about future cash flows. i think they are greatly overdone. i think kennedy will bring an independent look, not a

cancellation or prohibition against vaccines. i think the cash flow for many of the cheap pharmaceutical companies will still be there. you can buy a company like pfizer. . it is not exciting but the safe dividend is almost higher than the price/earnings ratio. that is a company that can see you through a more difficult market. scarlet: i hear what you are saying but what about health care giants like cvs , cigna, united health that are coming under strident rhetoric from incoming president donald trump? chris: the devil is in the details, scarlet. unitedhealth does have a pbm. a lot of their earnings come from other sources. cvs is a much more difficult -- i think discretion is the better part of valor and you wait to see what happens when the new administration comes in.

the pharma companies, it looks like the pbm's might be taking it on the chin but the pharma companies might be the recipient of eliminating the middleman. scarlet: how about the tech sector? you mentioned valuations getting lofty. there is a name among the mag 7 that does offer a modicum of value. chris: i have been a fan of google for more than a year in terms of relative to the other mag 7's. it lagged until six weeks ago and now it is in the catch up mode. it remains the only mag 7 stock selling at less than a market multiple. i am suspicious of the market but not too suspicious of the economy. the economy seems very healthy. you have a strong economy and that means the advertising business should be just fine.

my favorite thing about google is you are getting rid of the antitrust threat and large ways. the second thing is these things you get for free, quantum computer breakthrough we had. the autonomous driving. none of those are in any of the numbers. over a 3-5 year time horizon, you are getting something like amazon's aws. i am excited about that. scarlet: you like alphabet, health care -- names like pfizer -- that is a bottom-up perspective. what about the overall factor of value? does it finally catch up the growth? chris: yes, if you wait long enough. scarlet: [laughter] chris: but, the pendulum has swung so far now that i cannot tell you when it will change but when it does change it will be

awfully lovely value. when you run the numbers -- i am old enough to remember the late 90 runoff and the crash after that and internet stocks -- value underperformed by almost 100 basis points and then completely made it up and more in the next five years. over a 10-year period, value beat growth, including the internet bubble. beware, those people who think value is dead forever. scarlet: when it happens it will happen in a big way. chris grisanti is chief market strategist. pleasure to speak to you. coming up on "bloomberg markets ," the u.s. government in danger of a shutdown. president-elect trump and elon musk throw congress into chaos. we will have more on this rapidly developing story. this is bloomberg. ♪

>> this is trump term 2. chaos. one hand not knowing what the other hand is doing. unfortunately we are starting early with it. we negotiated a good deal -- not a perfect deal but a good deal. we had it signed, sealed and almost a delivered. the republican side, they did not know what the other side was doing and it fell apart. if this government shuts down, it will be trump's opening gambit. scarlet: that was a democratic congressman speaking last night about the potential for a u.s. government shutdown which is seeming more and more likely. this morning president-elect

trump reportedly told abc news the u.s. federal government will shut down if the debt ceiling is not eliminated or extended. kind of a crazy 24 hours. talk to us about what president-elect trump has said about the debt limit. initially i thought he wanted it raised while still on biden's watched. gregory: the debt limit is something that goes back at least a century. congress has imposed a limit on itself and how much money it can borrow. republicans have used this from time to time as a mechanism to enforce some financial discipline over their own affairs. it has usually been republicans who like the debt limit for that reason. we have the incoming president elect, a republican, who says he

wants to get rid of it entirely because it is an inconvenient thing for a president to have on his watch. the question about whether or not the federal government will be able to pay its bills, be able to borrow, redeem bonds. what trump wants is for biden to do the hard work, the hard political work of raising the debt limit so he can wash his hands of it even though he is saying the quiet part out loud. scarlet: that is why his supporters like him. he will say the quiet part out loud. speaker mike johnson has been putting together this carefully crafted stopgap funding bill that allows the government to continue running into 2025. all over not you had elon musk and donald trump weighing in saying don't pass this thing. walk us through what is next. gregory: usually when something like this falls apart -- it is

not unprecedented -- congress spends a lot of time negotiating a compromise. trump has done this before. in 2018 he demanded a border wall and all kinds of concessions, shut down the government for 35 days over the holidays. it was all for not. eventually the government reopened without those concessions. the easiest path forward is to go back to a clean cr. strip out policy provisions an additional spending and have a one sentence law that says all the spending authorization set to expire on december 20, we will move that date to march 17 of next year. that is probably the mechanism they are working from now. they needed some deal sweeteners to get democratic votes that will not exist in a clean cr so republicans will have to do it on their own.

scarlet: greg corti, thank you for joining us from our washington bureau. the biden white house is working out its final foreign policy moves. in the middle east, the fall of assad's government leads to new opportunities. >> we are looking at all the authorities we have, all of the sanctions, not only our own -- the united nations has sanctions. i think what we need to see is actual concrete steps, building an inclusive nonsectarian government, eventually getting to an election. as we see the steps taken, we will be able to respond. others will be able to respond. that is what we would like to do but we need to see concrete action. >> the e.u.'s chief diplomat

said she is sending someone to damascus. is that something you can do? >> we have been in direct contact with hts. we are also looking at getting people on the ground in syria. it is important to have direct communication. we understand as best we can where they want to go. we will be looking at pursuing that. >> another question about the region. . there has been speculation that a cease-fire deal could come together when president biden spoke about the deal between israel and has the line he was asked if there could be a cease-fire deal by the end of his tenure and he said he was hoping and praying. >> the reality is we should, logically, be able to get this. i say that with all the caution that comes with that statement.

we have been very close before and we have had the lucy with the football moments. ready to kick the football and lucy pulls it away. what has changed is this -- hamas knows the cavalry is not coming to the rescue. for months it hoped it would get a wider war. coming in and creating more problems for israel on more fronts and helping hamas. they know that is not happening because of the very important work that was done with us and others, dealing with the unprecedented iranian attacks on israel and dealing with hezbollah. that has concentrated minds on the need to complete this deal. it is always incredibly fraught and it is hard to get decisions made and hard to communicate. for all of those reasons, even as close as it is, it can still move in the other direction. we have all been fanning out, working with all of the

different partners who can make a difference and they have some leverage and communications with hamas, whether it is qatar, egypt, turkey. the fundamental question right now is, is hamas finally prepared to say yes? if it does, we get the hostages back and we get a cease-fire. scarlet: that was outgoing u.s. secretary of state antony blinken. we have breaking news crossing the bloomberg terminal. luigi has been charged with federal murder charges with the murder of brian thompson. that increases a potential punishment for mangione. there were murder and stocking charges filed against mangione. he is on his way to manhattan to face charges. we will bring you further news.

mangione has been charged, increasing potential punishment. coming up on "bloomberg markets ," the u.s. dollar at its strongest since 2022. we have more on that, next. this is bloomberg. ♪

scarlet: the u.s. dollar rallying to its strongest in over two years after the fed signal a slowdown in the pace of rate cuts. joining us is carter johnson. the dollar is up 7.5% this year and the latest central-bank action reinforced this dollar strength narrative and people see this continuing into 2025 and beyond. carter: that is exactly right. the last few days have confirmed the dollar strength. we had the fed meat and it came

out a lot more hawkish than folks expected. we knew they would cut. that was not much of a question. the only signaled a couple rate cuts in 2025 and we heard pal talk about inflation in a way the fed had not talked about it in some time. he said yesterday was a closer call in terms of a cut. the markets took that in stride and pushed the dollar higher. we had more central banks -- the bank of japan -- that came out more dovish. the past couple days affirming the near term dollar strength. scarlet: think about how other countries respond to this dollar strength not just recently but all year long. countries have tried to come up with an alternative and have not done much. there is no immediate threat to the u.s. dollar's status as the world's reserve currency.

carter: i don't think so. there are things that have caught the attention of president-elect trump. when we think about how is most global trade invoiced, mostly done through dollars. we speak to folks, that might not be the case forever or for the next 20 or 10 years. in the immediate future, traders, investors, you do not see any near-term threat to the dollar's status. scarlet: what are analysts and strategists thing about the prospect of tariffs and the dollar's trajectory? carter: that is the big question heading into 2025. the consensus seems to be it should support the dollar. once you get into the middle of 2025, you get potentially all this blowback that could potentially drag the u.s. economy and the u.s. dollar. scarlet: really appreciate you

joining us. dollar strength not helping matters in brazil. we will go there live as that country faces its own fiscal crisis. this is "bloomberg markets." ♪ ♪ ♪

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scarlet: welcome to "bloomberg markets." i'm scarlet fu. at mid day we have an equity market that is in recovery mode after yesterday's big selloff. the s&p 500 up although it is. its advance and is only higher now about a quarter of 1%. chipmakers extending their losses. macron had a disappointing forecast dragging the entire group lower. in fixed income, the yield curve, to stans is steepening. the fed's hawkish cut sent all yields higher but today the

2-year yield is lower while the 10 year moves up to the highest since may. dollar strength abounds. again struggling after the boj kept rates unchanged. the bank of england also chose to keep rates unchanged. they want to see what president does does president trump does in his first months in office. let's go to abigail doolittle for market movers. abigail: micron shares are plunging, down 17%. this on the outlook on the massive missed by the current quarter. second quarter and the fiscal year, talking about sales of 7.9 billion dollars. they also lowered the eps range but the sales number, 1.1 billion dollars less than anticipated. hard to think about a comforting that -- company having that big of a guy down. not only with ai related components but pcs and smart

phones, they sell the memory for those devices and machines, not doing so well. turning to the shares of fedex, could be a big mover tomorrow. right now up half a percent. not a huge move. analysts are positive about the recorder to be reported, they think result will be good. we'll also provide some tells around the holiday. lots of investors and analysts wanting to know about their strategic review of the freight segment. we may have the information after the bell. rounding out, darden shares, record high. the best rally going back to november 2020. great quarter, outlook good. apparently their businesses have stabilized, people coming back to restaurants. one article saying that folks are obsessed with the olive garden and texas roadhouse.

scarlet: thank you so much. we are going to be breaking those earnings from fedex later on in the day. in the meantime, i want to turn outside the u.s. the latest guidance from the fed is rippling around the globe especially in emerging market currencies which are weaker. renaissance macro's neil dutta discussed how this creates a new level of risk for em. >> the dollar is surgeon today because of what just happened. you have to start thinking about what that might mean for the emerging market space. these countries have a lot of dollar-denominated debt and that will imply tighter financial conditions in those economies. scarlet: one of the biggest that could be impacted is brazil, whose currency is already weakening as it faces a fiscal crisis. the central bank ramping up intervention in the central markets to stem losses. today it sold $8 billion in back to back spot options, the most in years.

for more, we are joined live in sao paulo. who is pulling out of brazilian assets? certainly the currency but also stocks and bonds. are these foreign investors, local investors? >> at this point, we are seeing this pullout certainly from the u.s. as well as local investors here. there is a lot of volatility right now. the scenario is pretty murky. that comes against a backdrop that is negative for em with the fed rating back in their cuts for next year. the assets for brazil today are a little better as you mentioned. we had a billion-dollar dollars spot auction this morning which made the real appreciate after a very negative day yesterday. swap rate saw some relief but we are not out of the woods. certainly a very challenging backdrop as we head into next year. scarlet: the big picture here is

that investors don't have a lot of faith in brazils fiscal plans. but that has been the case for a while, it is not like you just developed. what happened this week that really accelerated this breakdown in confidence? >> as you said, we've been seeing for months. since november 29 when the government unveiled their plan, we have seen a selloff in assets. things have just been getting worse. we have not seen any indication from the government that anything will be done to provide more spending cuts. we had the president had some brain surgery over the last week , a moment of volatility, which could cause some uncertainty in markets. this week we also had an interview on sunday where he criticized the central bank, said there were no reasons for rates to be this high, and that again pressured assets. that this point, what we hear from sources, we want to see more rhetoric from the government that they will be

cutting more, that the budget deficit will be reined in through spending cuts, not by raising revenue. that is the key here. scarlet: the bond market and investors around brazilian assets looking for any cuts. giovanna bellotti azevedo, thank you. to elaborate more on this growing crisis, i want to bring in cio of macro, partner at jaba rtay capital. selling $8 billion of dollars just today alone. realistically, how long can the central bank intervened in the currency market to stem the selloff? >> thanks for having me. from a market perspective, it was healthy to see the central bank and the treasury providing

liquidity to the markets. but this will not solve the problem. we need to see in the government sending the right leg such -- message, acting in the right way. right now there is a lack of response from the government and there is no evidence of political will to change the situation. scarlet: that comes up a lot. that brings a lot of people to talk about this thing called fiscal dominance, a scenario where fiscal expansion, which is what lula is behind, undermines whatever the central bank is trying to do. talk about how this is developing in brazil and whether this is sexier than what we are seeing -- actually what we are seeing. >> brazil is running a loose fiscal policy right now so the central bank has to act in the other direction. it has to balance.

the central bank is responding accordingly and running a tight monetary policy. they started to hike interest rates last september and have increased the basis so far because the devaluation of the currency is fueling inflation. we continue to see a de -anchoring of inflation expectations. i think it's correct with the central bank is doing. when we think a month ago, markets were pricing the rates to be near 14%. right now, the market is pricing in almost 17%. to bring some perspective here, last time we had this rate level was in 2005-2006, when we had a completely different economic reality for brazil. scarlet: that is really good

context to have rates go to 70% in a different economic environment. what are their emergency measures can the central bank take beyond raising rates to protect the currency? >> they have to continue to provide liquidity to the markets and the treasury as well. they have been buying bonds and i think bringing the right communication to regain credibility from the monetary authority. scarlet: can you compare and contrast what we are seeing today in brazil with a good old-fashioned emerging-market debt crisis? is this similar? >> it is different. brazil, our external accounts are really healthy right now. we actually have very low international debt.

almost 100% of the debt is local debt. we have reserves, so this comparison, by no means, makes sense right now. scarlet: thank you so much for providing that perspective. joining us for the latest on the brazil crisis, with the currency at a record low. coming up, nike report earnings after the close, but can they beat estimates after multiple quarters of disappointments? we have our stock of the hour next. this is bloomberg. ♪

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and it is nike. the retailer will release its latest earnings after the bell. investors will be eager to hear from the new chief executive elliot hill who took over in september. joining us for more on this is alex straton, with an equal weight on nike. your take on the result here is perhaps the numbers matter less then one elliott hill says about the outlook. do you think he will offer any sort of specific guidance? alex: from a guidance perspective we are not expecting like to restate full-year guidance explicitly. i really take that view due to his pretty short tenure since he was announced at the company. the fact that i'm not anticipating some fulsome strategy uptick tonight. they are still dealing with inventory digestion, there has

been a track record in the last 12 months of some guidance volatility. from a formal guidance perspective i don't expect an update there, but i do think that they do need to walk back on their prior assumption that there could be some improvement in the back half. the street is hopeful for that but it doesn't seem like that will necessarily be the case. that is too optimistic at this point. scarlet: feels like the news to be a rethink completely. i know there were some missteps with the previous ceo but when you boil it down, it feels like the nike brand has lost some of its luster. the competition in the marketplace is so much more intense than what it was last dominant. alex: i think that is true, an important part about our market landscape and how it has changed in sportswear. how i would categorize it, it's definitely become more competitive. we she stares -- we see shares start to fragment and what was

once a very concentrated landscape. you have these legacy brands struggling a bit, and those coming out of the niche premium space, general fashion players, so it begs the question, are the historical aperture levels, valuation levels that many of these mass legacy sports brands still reach? that is a key debate in the space right now as many of these former titans in the space are undergoing some degree of a turnaround in the upcoming year. scarlet: it feels like elliott hill's main objective is to manage through this challenging period. how does he repair relationships with store partners, make sure nike gets desirable store shelf space that is right now full of all of the other competitors? alex: the context here is that nike was an initial propagator

of this direct to consumer transformation strategy in the space. the concept that if you move direct to consumer, you'll have higher growth and margins, which is fantastic on paper, but what they didn't realize at the time, you suffer this out of sight, out of mind dynamic in the wholesale market which is where the vast majority of people still shop. the good majority is, hill has a lot of institutional memory at nike with working with partners. that is clear. that is a strength of his. i think he has a lot of credibility in terms of rebuilding relationship. we have already heard he is doing it. scarlet: how bad could the numbers be for the fiscal second quarter, the quarter thatended? alex: heading into the print tonight, we think you could see some slight eps outperformance, a little bit better, but there is a massive caviar to what i'm saying. that is mostly sg&a driven and

we are fearful of the downside. it is still a very challenging result. it is clear, the market is bracing for it. all the data points have been pretty challenged. high-frequency demand data, commentary about their chinese partners, retail partners like footlocker, jd. it sounds like the market is brace for a worse outcome than i am in terms of an eps perspective. sounds like they are closer to $.50. circling back to how you kicked this off, it matters less. we know the near term result will be challenged, will remain that way for the next six months, perhaps longer. what is important tonight is how hill positions what he has learned, initial plans, a timeline. i think that would be helpful for the market. scarlet: really appreciate you joining us and giving us your perspective, alex straton. nike results coming out after

the close where it is reporting a third straight quarter of declines in sales. coming up, we will look at real estate and how it might respond to a less dovish fed in 2025. founder and ceo of shvo joins us next. this is bloomberg. ♪ to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress.

scarlet: this is "bloomberg markets." i'm scarlet fu. just survive until 25. that has been a rallying cry for commercial state investors and operators as they pin their hopes on inflation getting tamed, him demand returning next year. but new got it from the federal reserve suggests 2025 may not be the year that industry had hoped. you see the fallout in the s&p 500 real estate groups coming under pressure because of those higher rates. joining us now is abigail doolittle and michael shvo, founder and ceo of shvo capital.

good to speak with you. the first question, given what we heard from the federal reserve, does that idea, just survive until 25 get pushed out because there are fewer rate cuts next year? michael: what did that mean, just survive until 25? after the election or interest rates? we are seeing interest rates stay where they are as far as the 10 year treasury. actually went out yesterday. the sentiment for doing business today is at peak. since the election, we have seen rent go up and leasing activity skyrocketing in multiple markets. new york, san francisco, miami. while we are not seeing rates go down on borrowing, we are seeing the income side of the ledger go up. abigail: is that the trump effect he were talking about, since the election, this big boost in activity? how long do you think it is

going to extend? michael: the trump effect is definitely there. we are seeing a willingness to do business. in san francisco, we own the transamerica pyramid. san francisco is back open for business. he wants to bring companies there, they are encouraging companies. we have leases at record rents today. i will give you a piece of information that we can announce here. q4 of 2024 is the first time since covid that there is positive absorption in the commercial real estate market in san francisco. six months ago, we saw a rock-bottom. it means there is more occupancy today in this quarter than there are people vacating, which is a big turnaround considering how people rode off san francisco. people are coming back to work, we are seeing tech companies, ai companies. you feel the bubbling on the street. you talk about the effect.

there is an ai effect and there is the trump effect. abigail: you have a good sense on when to buy. you bought the transamerica pyramid during the dark days of the pandemic. what do you have your eyes on now? michael: it is still a bit early because the assets are not there. it is not that we don't want to buy, but what we do, owning and operating super prime real estate, those assets have not hit the market. owners are keeping those because they are outperforming. looper just wrote an article today about park avenue, rents in new york city are going out of the roof. the top buildings in the high 200,000 rent and next door there is a building renting at a 90% discount because it is a dilapidated building. all the buildings that we invested at the top of the market, we have not seen those opportunities. i am hopeful that we will see them now but that big idea that

there will be a lot of blood on the streets maybe was there, but not where i want to buy real estate. scarlet: what are sellers waiting for, a signal? michael: pricing. the market cap rates were depressed. scarlet: how much more of a gain do they want to see in person before they do anything? michael: i think probably another 150 cap rate compression that needs to be seen to see trophy assets hit the market. abigail: the fed right now it is expected to cut two times in 2025. if that doesn't happen, how much pain will the commercial ballistic market be if we see the 10-year hanging around 4.50? michael: i don't know that the cuts will be that meaningful. we are sitting here saying it will all change the commercial real estate market. 50 is better but it is not what it was pre-covid, not what it was in 2020-2021.

we will see some movement. if it doesn't happen, it will be worse. but the bigger issue is you will only surprised if you have super prime real estate in demand and the increase in the rent and occupancy is what is going to save you today. not the fact that you save another quarter-point on your borrowing cost. scarlet: speaking of occupancy, we spoke about miami. is there still a ton of demand? michael: there is a ton of demand but what we are seeing, we are not seeing this movement. everybody said everybody is moving to miami. same with people saying everybody is going to work from home. today, at&t announced everyone has to come back to work five days a week. miami is going. scarlet: appreciate your time today, michael shvo. abigail doolittle, our markets reporter. i'm scarlet fu. that does it for "bloomberg

markets." we are keeping our eyes on equities, in the green on the s&p, dow, nasdaq. the russell 2000 under pressure, down by half a percent. from new york, this is bloomberg. ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

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

live from washington, d.c. kailey: the clock is ticking louder and it is not clear how we are going to avert a government shutdown. welcome to "balance of power." i'm kailey leinz. log in washington where they are trying to formulate a plan b after elon musk, donald trump, and other -- a number of conservatives killed plan a put forward by speaker mike johnson. we will get the latest from capitol hill and have more from our political panel this hour, rick davis and kristen hawn. and i'm joined by congress member susan del benny who tears a democratic campaign committee. and we will bring you an important conversation with bloomberg's julie fine and former dallas fed president robert kaplan in the aftermath of yesterday's hawkish rate cut.

as