welcome to "bloomberg markets." jobs data was strong todayth mo, resetting expectations for rate cuts this year, putting more of a pause on it. let's get a quick check on the markets with equity markets selling off and on the news. good for the economy that so many jobs were created but fishing out those rate cut expectations down one point 6%, the nasdaq 100 down one point 8%

and the 10-year yield at a full on 47 510. just below 20 now, still off, bearing down on that 20 mark. data track pointing out earlier that as long as the vix remains low, the inclination is to say -- stay relative in stocks. earlier we spoke with seema shah through the lens of the markets. >> there's a push up and yields with the market coming back further on that expectation, one or less. something that the market can ill afford at this point. the thing is, when you look at the long-term trajectory, for stronger growth, that's stronger earnings growth, to keep the equity. this is a challenging environment. it should reverse and it should still be biased higher looking

to the rest of 2025. vonnie: for more on equity markets, we are joined by the managing director at rock creek. were you surprised by today's job print and the expectation print and how the market reacted? >> the jobs print was surprising and it exceeded expectations but we are not surprised at the market reaction. we are not surprised at how the last two weeks have played out. it's healthy for the market to have a reaction and it brings investors back to data dependence. something we forgot in the second half of last year plus the fact that the markets are not in a position to necessarily reach the 20% highs that we have enjoyed over the last two years. it's a bit of a wake-up call for the participants in the market. vonnie: we are still at a place for equity markets go down. it had never been the case usually.

do we decouple at some point have equity prices reflect the fact that the u.s. economy is growing nicely? >> i think we could potentially see decoupling and this year there could be a big differentiation between short-term moves and longer-term positions as institutional investors look long-term. short-term market moves and noise is important, giving you more data and feedback. the question for investors is how much do you change your portfolio shorter term versus long term dates that you are looking out at. vonnie: how confident would you be in predicting how many rate cuts we are going to get this year? we earlier had a discussion that there could be a -- a consideration of a rate hike this year. >> it's so data-dependent. we have been in the camp of one to two rate cuts this year. every single data print is going to do the same thing.

next year, inflation will be extremely important. on the flipside, the market will have to decouple from the pricing in of market rate cuts driving sentiment. previously with the last person you interviewed, earnings will be extremely important in terms of the determinants of where the equity market goes this year, especially if the market cannot rely on really being able to price in rate cuts, which we were able to do last year. vonnie: the problem with data dependence in this economy is you are at the mercy of the next marginal print. everyone always makes the point of that one data print is one print. how can they do that if they do surprise >> they are looking for

the data to reinforce on where the numbers go in the fed has a difficult job. there's been a difficult confusion between the market anticipating problems for the new administration. it's new policies coming out that haven't been implemented yet, right? we don't really know what they will be. there is a lot of uncertainty that the fed will have to grapple with as they try to look ahead to see what they project and signal to the market, which is probably more important than what they actually do. vonnie: for the year of uncertainty, which you wait until after january 20, if they came day one? >> rebalancing and diversification have been lost a bit about -- along the way because of the type of market we have seen, so we are really sticking to the principles of

thinking about how to be smart in terms of rebalancing equity positions and where we want to be balanced and being diversified with the equal weighted in and seeing top-heavy. this is a year where we have to stick to diversified equity portfolios. we have the luxury of investing in private equity and other alternatives to be able to increase diversification in the portfolio. last thing i would announce is it should be a better environment for stock pickers. we have been saying that a lot. given the heightened uncertainty, stock pickers will be able to determine the difference between shorter term noise and longer-term impact. vonnie: with a situation like this we have an incoming president who will presumably be here for four years. we also don't quite know what's going on with the other central banks reacting to the u.s., how

can you make a long-term decision? >> there's a wait and see approach. we haven't actually seen the policies implemented yet. once we get more clarity on what policies will be approved and implemented, then you can do a good assessment across those portfolios, sectors, geographies, and asset classes to determine relative risk reward over a longer amount of time, three to five years out, trying to position your portfolio to get out as much of a return as you can in the next 3, 4, five years. vonnie: you talk about opportunities in the private hedge fund and equities and so on, but if you were a macro hedge fund that didn't bet on the victory, you didn't do so well this year and if you did, you got all the spoils. >> alternatives in general

should be better situated in this type of market. one of the big determinants around this is hedge fund strategy private equity. when we look at the markets, we think there should be increased environment, favorable environment for ipos, m&a and pit -- m&a activity picking up. its economic fundamentals and tailwinds from policy. if you take those factors and look out at where the opportunity is, private equity should start to turn over two years. event and arbitrage strategies within hedge funds, there are pockets within the market that seems like it's on steady footing. vonnie: thank you so much, coming to us from rock creek. >> shares of delta airlines jumped by 10%, the biggest gain since two thousand 20.

quarterly results gaining better-than-expected, largely driven by strong international and corporate travel. delta doesn't expect this momentum to slow down in 2025 and we saw the strong results and outlook pushed other airline stocks higher. now moving to the next stock, we are looking at walgreens, the company posted stronger-than-expected results. the stock is now up by 25%. this is the biggest gain on records. those results were mainly driven by higher prices for some drugs and some prescriptions. keep in mind, expectations for this result were low and some analysts say that retail business is still under pressure. finally, constellation energy, this stock is now the best performing stock in the s&p 500, up by 24%.

it comes as the company officially confirms that this is one of the biggest, the biggest ideals in the u.s. power market. they've already said that this would allow it to boost up graining earnings in 2026. vonnie: a lot moving today. natalia, thank you so much. another company were looking for, tiktok, supreme court hearing arguments as to whether they need to shut down in the united states and bytedance plans to shutdown the app january 19 if the supreme court doesn't delay or strike down a law that would force it to sell tiktok. for more we are joined by mike shepard. mike, what is the latest out of the supreme court's interesting

arguments being made this morning? >> they are wrapping up. the u.s. solicitor general's presenting the government's case that the law signed by joe biden in april requiring bytedance to divest of the app or see tiktok band in the u.s. has been arguing this case now, facing questions and skepticism from the justices, but not nearly to the degree of grilling that the lawyers for tiktok and content creators got earlier in the arguments, which began at 10 a.m. today this is a case finding we have been watching closely in anticipating the biden signing of the law with bytedance and tiktok making it clear from the start that they would appeal this to the highest court in the land and this is their last chance today. vonnie: it's fascinating, there were two pillars of the argument. one of them was on free speech and whether an algorithm can be

considered free speech. the other was national security. >> the other issue at hand is the ownership question. the government made it clear in this case that it's not about content publishing on tiktok. it's about the bytedance connections to china and it's being headquartered in beijing. the government because it ties to the chinese government and that china could use tiktok to harvest data on americans and use the act ii's -- the app to somehow so propaganda or sway public opinion in the u.s. the ownership question came up at the start and it was one of the very first that justice clarence thomas put to the lawyer representing tiktok, saying in essence are you conflating the ownership question and requirement being imposed by the government with the free speech issue you are trying to raise? are you trying to mix apples and oranges?

other suggestions were that there could be other fish in the sea, users finding other platforms to take their speech. today we have seen shares of snap, snap chat, rising 9%, the most we have seen that stock jump since the end of october. so, there is a lot at stake here. vonnie: is there indication of how scotus is leaning right now? >> indications based on the questioning are that it will probably fall in the favor of the government, but it is not necessarily dispositive. the justices are famed for asking tough questions and it doesn't necessarily mean or translate into a loss for tiktok. we also don't know how quickly they will act. it's entirely possible that they put a temporary pause in the enforcement of the law to give themselves time to write a more ample and thoughtful opinion to come out later in the year, but it really isn't breaking in their favor right now and the

deadline is january 19. vonnie: thanks to you, executive editor mike sheppard. you can find all the details on the hearing at the supreme court where we have a running log of what was said this morning in court on the terminal. coming up, the big streaming announcement today, venue is a sports platform that was canceled before it could leave the drawing board. we will discuss it next and what it means for media giants and th sreaming industry. this is bloomberg. ♪

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vonnie: this is "bloomberg markets." i'm vonnie quinn. fubo has given off all of its

gains as the market sells off and we learned that disney, fox, and warner bros. discovery announced they were scrapping a venue for a joint sports streaming service that fubo sued against immediately. the litigation was settled. for more on the whole story, already disney owns one third of u.s. ports. perhaps i can understand that with fubo, disney doesn't need this new literal venue. who else does it disadvantage? >> both fox and warner bros. discovery, the original partners, along with disney, in the venue of a joint venture. remember, fox is really leaning heavily into the linear tv ecosystem. they don't have a mainstream streaming service. this really would have helped

them to monetize better. definitely for warner bros., this is a negative and for fox a little bit. vonnie: if disney is paying to license sports content from fox, are we going to see things like bidding wars coming back into the system? >> likely. disney is now going to focus their efforts on launching what they call flagship espn, meaning they are taking lead in the marquis espn content over the top or all. anyone outside the bundle can subscribe to espn and it's a huge move with huge ramifications across the space. you are right, disney controls about one third of all sports properties in the u.s. and eventually they will want to beef up that offering by licensing more content. we have already seen the bidding wars with the tech giants,

youtube, netflix, all paying for sports, and it could intensify even further. vonnie: we will keep our eyes peeled. thank you so much. coming up, the latest u.s. jobs data showing resilience. but the food service industry has famously been struggling with fewer workers. we dig into the numbers, next. this is bloomberg. ♪

vonnie: this is "bloomberg markets." the payroll report increased by more than expected, particularly one sector is standing out, 43,000 jobs added in leisure and hospitality and in the accommodative food services. for more on that sector, we are talking with eugene, cofounder and partner at catch hospitality, a portfolio of restaurants including locations in new york, los angeles, and

soon scottsdale. we will talk about the new open, but first, the labor market dynamic out there. seems like in december a lot of more people were hired in leisure and hospitality. >> it's a great headline but i think the bigger conversation is on efficiency and all the restaurants that will have to work with a better efficiency model, doing more with less in all aspects. whether that is the food, the service, the labor, everything. you have got to focus a lot on technology. ai changes a lot of the dynamics. technology is a supplement, it doesn't replace the team, and if you don't have a great team, you won't have great guests and he won't make the money you need to make. vonnie: if you don't meet those minimum wage requirements or get bad staff, you have to put the money into the ingredients. where do you make those margins?

>> i focus a lot on efficiency. the goal is still for people to make the most amount that they possibly can, just done with less people. looking at costs in the labor market and the hours of operation the goal is to get the people that you have paid. that is never an issue with us. people are paid well. you have to be able to do it with less of them to make the margins work. margins are not easier in 2025 and is through focusing on the efficiency of all aspects of the business with technology taking care of reservations, the special events department, you can mitigate some of it there, giving you the ability to pay people in other areas. vonnie: now it's x minus the same number of staff? . >> down 25% -- we are down 25% , revenue more efficient, the biggest gift whether we like it or not of covid.

as we reset the world, every single business is going to have to operate with lower amounts of people. vonnie: incredible. i was looking at your menus and preparation, different cities, you are now open in dallas and miami beach. there isn't that much difference in dollar amounts for the dishes that are the same in most places. >> most people come for a catch experience will get that experience. we will tweak the markets a bit, but ultimately the experience of promise and the promise is a brand. vonnie: you might have thought that it might be cheaper to eat in dallas or even south beach, for example, with raw materials bigger by the ocean. >> our prices are a bit cheaper in dallas because there are certain things we can do in dallas that we don't in other markets. in south beach you might have hourly minimum wage with other costs that are more expensive

and you can't make as much money. in one you lose, and the other it comes with a consistent price. vonnie: portions of a doing well, but not necessarily filling seats in the 5:30 or 10:30 segment. seeing any of that change? >> there is an uptick where we are seeing new concepts that we are coming up with to get people excited. you have to make sure the you have spaces that aren't so big. and then you can fill them easier. it's always a constant evolution. vonnie: arizona, november, opening in scottsdale later this year. that is straight on the heels of having opened in dallas in the last few months. thank you to eugene, cofounder and partner at catch hospitality. looking at where we stand now, friday lunchtime, it has been a whirlwind of two weeks so far.

we are off the session those. the nasdaq 100 with big tech stocks, down 1.5%. that does it for "bloomberg markets." stay with us throughout the -- stay with us throughout the afternoon right here on bloomberg. ♪ like clean water. and what promising new treatment advances can make a new tomorrow possible. better questions. better outcomes. lock in let's go. better questions. rated e for everyone. [rock and roll music playing] xfinity. made for gaming. rewards members, get early access to an ea sports fc25 kit. visit xfinity.com/rewards.

announcer: from the world of politics of the world of business, this is "balance of power." ♪

live from washington d.c. ♪ joe: the high court signals it is likely to uphold the tick ban. welcome to the fastest show in politics as the supreme court today hears arguments on the future of tiktoks, ahead of a deadline to divest or ban. i'm joe mathieu alongside kailey leinz in washington. welcome to the friday edition of "balance of power. this just coming on the terminal. donald trump's new take on this, his evolving position, is why we are here today. kailey: and the ban is set to go effect one day before tromping back in office and incidentally 10 days before he is back in office, trump also was sentenced today and will become a convicted felon. that sentence of course not really anything, no probation,