lloyd blankfein spoke with bloomberg's erik schatzker on the challenge of raising interest rates. ♪ >me things that are inevitable that have been of some concern is how we manage interest rates, going back to what i will call normal, but normal history. if everybody owns paper that has been issued at 0.5%, 1%, 2%, and interest rates go to 5%, not an unreasonable place over history, what happens to the market on everyone's portfolio? as a result of low interest rates, people are then taking extra credit risk. maybe sovereign risk. extra credit risk in order to get higher yield. that will break people's hearts because things are stable, but the market gets disrupted, it tends to be the weaker credits that separate from the weaker. there's a number of things that can go wrong when the money starts to get allocated by assigning a cost to money that is more inconsistent with history, and that is a long way from where we are now in the market. >> are we about to have an inflation problem? >> there's a lot of remedies in the world, painful as they are, for inflation. it is very hard to get r

erik schatzker, thank you for joining us hertz putting an order in for tesla.s is bloomberg. ♪ this halloween, xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to hollywood or orlando to attend halloween horror nights. or xfinity rewards members, get the inside scoop on halloween kills. just say "watch with" into your voice remote for an exclusive live stream with jamie lee curtis. a q&a with me! join for free on the xfinity app. our thanks your rewards. moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. mark: china warning that new covid-19 infections will increase in the coming days after the latest outbreak expanded to 11 pr

alix: that was erik schatzker in speaking with don fitzpatrick. also at the conference, bruce flatt of brookfield said it is a good time to be liquidating assets following a slow period last year. i sat down with john gray of blackstone to ask what he would be liquidating, when he was selling, and what he was buying. >> in this environment where rates are likely to go up on the back of higher inflation, what you don't want to own is long-duration fixed income. there you are more vulnerable, there is no place to hide. what you want to own our businesses and assets that can grow. even if multiples come down, value can increase because of the growth in cash flows. we have really tried to be thematic investors. look at these huge changes going on around the global economy, and how can we benefit from that? things like the movement of everything that we do online. shopping, paying for things, entertainment, health care, education, all of that. we have invested in businesses like bumble, ancestry, but we have also invested in businesses in digital infra

. ♪ erik: i'm erik schatzker, live in toronto. about the best ideas, and i am bringing you more with anne dias, founder and ceo of aragon global management. they stayed open for 10 years, converted to a family office, and recently reopened to outside capital. it is great to see you. you are on the hunt for companies that can double earnings in the space of three to four years. tell me about some of those companies. anne: we are looking for companies that can double their earnings power in three to four years. today, with cloud and ai and digitization, that is reshuffling the decks in every industry. there are going to be winners. there are going to be losers. we are trying to find the winners who will double their earnings power in this time. one of the companies we think fits the bill is bill.com, a company founded by -- after some time at intuit. this reorganizes your entire back office, everything from payments to any kind of back-office processes so you the entrepreneur can save time and spend time innovating. the company is g

erik: i'm erik schatzker and welcome to bloomberg's front row.'m talking to the hedge fund hotshots. founded diameter capital. scott goodwin and jonathan lewinsohn. they invest in credits. making invest on whether borrowers will or won't repay their debt. diameter is a new breed of hedge fund built for modern markets where speed is the difference between winning and losing. >> if you look aba

haidi: lloyd blankfein speaking with erik schatzker.ur next guest says inflation hedging is one of her top investment strategies. let's bring in jun-bei liu, he portfolio manager at tribeca investment partners and this is really kind of the primary concern for markets everywhere at the moment. what is your hedging strategy? jun-bei: look, the hedging strategy here is, first of all, we look at the inflation two ways. we think inflation is going to be transitory, short-term, and we don't think it's going to be structural for the time being. now, so what we are looking at is investing centers and companies that have leadership, that has the pricing power to be able to pass on the increased costs. especially particularly at this point that we have, you know, supply chain disruptions and the like. we need businesses who are able to pass that on to consumers. you know, and then in the current environment, we do think that there is enough demand for businesses to do so. absolutely focused on business. at this point. haidi: how much are you loo

joining us is mark okada and erik schatzker. rk, it is great to see you at 7:30 one lexington in new york city, traveling, thank you for coming. mark: thank you. it has been over a year and have since i have been in the city. erik: you are based in dallas and have been active in fixed income for 30 years. you are behind the first clo in 1996. how frothy is the credit market right now? mark: everything is frothy. the wall of liquidity is affecting everything. as we look across all fixed income, all credit asset classes, there is no shortage of money. this week we got the quote, there is an infinite amount of liquidity a quarterback. that means that the money is there. there are parts of the market that are more rational. one of the areas that we were talking about is credit. we like that. the loan market. the secureitization of the market. that market is much more rational. erik: relative to the bond market? mark: absolutely. erik: to be clear, terms of evaluation in frothiness the bond market is in your eyes more overpriced than

erik: i'm erik schatzker and welcome to bloomberg front row. i'm talking to lloyd blankfein, the former ceo and chairman of goldman sachs. for years he held one of the most powerful jobs in corporate america. he steered goldman through the financial crisis and the uncomfortable scrutiny that followed. for years it was

erik schatzker will be joining us with that. that selloff continues, 2.3% down on the nasdaq.rgy still in the green. 10 year yields going nowhere despite the selloff in the equity market. that is a mandate for you. this is bloomberg. ♪ alix: i'm alix steel. welcome to "bloomberg markets." we will speak to kenneth griffin on inflation and a return to offices and whether he believes in cryptocurrency. it is a messy monday shaping up in the equity markets. major averages, nasdaq 100 down the worst performer, down by 2.45%. the s&p down by over one put 5%. the nasdaq 100 getting hit hard. a part of that is maternal, that stuck down another 4.5 percentage points. you had a pfizer booster for adults cleared and dharna some but still getting beaten up from the merck covid bill -- pill that was very positive friday. facebook as well down. also the 10 year, a lot of nothing. no buying seeing in the 10 year, gold or the dollar. crude the outperformer come up by a three -- up by a full three percentage point. that is something the s&p 500 energy sector. on the flipside, you have to wonde

its stock, the first to $1200 price target for morgan stanley, and on top of that, our very own erik schatzker000 car order for hertz, a big investment in their own tv fleet -- their own ev fleet. that helped tesla hit the one trillion market cap. beating even facebook, emily. emily: all right, thank you so much. diving into a little more for hertz, barely out of bankruptcy, now placing the order for 100,000 teslas, to ambitiously electrify their car fleet. joining us now is our bloomberg news reporter. so a huge order for tesla. what makes it so significant? reporter: it is going to be enormous, because not only are they ordering cars, they have got this whole ad campaign with tom brady. tesla has never pay for traditional advertising, and now you have like this nfl star basically encouraging people to let's go electric. it is the whole ev revolution and tom brady that hertz is paying for. emily: renting a tesla from hertz, would you be able to use the supercharger station? reporter: you will. right now, if you do not own a tesla but want to drive one, you can try to get a ride or borrow a fr

. >> today, citadel ceo sits down with erik schatzker for a live ranging interview, live on televisioncountdown is on in europe. this is "bloomberg markets: european close" with guy johnson and alix steel. guy: monday the fourth. 30 minutes to the european close. what you need to know out of europe -- markets are down. let's talk politics. the u.k. chancellor says his government will not pursue reckless borrowing, but with the economy hit hard by shortages, is growth already starting? we will be live. the energy crisis dominating the energy financer -- energy ministers meeting. and also a warning that the airline industry will lose up to $200 million, wiping out nearly a decade's worth of profits. let's talk equities. gathering

the former chairman and ceo of goldman sachs spoke exclusively to erik schatzker on bloomberg front rowot of bright people think it has a bright future. i'm telling you, i have a whole foot and four toes into the old world and it's not something that i gravitate to and i can think of a lot of reasons why it will not work. but i remember when they were auctioning off -- auctioning off spectrum to cell phones. all you do is pull up -- driving your car, pull up to a phone booth. who would carry that clunky thing? the point is that there are a lot of things in this world that have worked out awfully well. erik: for somebody who used to run a bank, you sound pretty constructive to it. lloyd: i am open. i ran a bank. i ran risks. you have to separate fact from opinion. nobody knows the future. i mean, there's all sorts of things. there's a lot of things that move in different directions that i could not and would not have anticipated and no one else would have either so to just come out and say market that is already in excess of $2 trillion, that faces all these regulatory headwinds, the a l

you can catch more of that conversation with erik schatzker, including his thoughts on inflation ands we close out the show, let's take a look at rich go under your terminal -- in your terminal. mark zuckerberg's net wealth dropped from the fourth most rich to the fifth, losing about $6 billion. his net worth is still over $121 billion. you can see jeff bezos losing $4.8 billion as well. tech rebounding today. will their net worth rebound as well? that is that for bloomberg daybreak: europe. tom mackenzie will join me next. we will have all of your markets coverage. that is next. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. dani: good morning, welcome to bloomberg markets: european open. i'm dani burger alo