sonali: absolutely. and all that matters as we watch some of the names is that many central bankers have tightened policy around the world. inflation remains sticky. >> i want to be clear, we are not yet seeing inflation going down to target fast enough. central banks need to stay the course until we are comfortable that price stability is returning. sonali: for more insight, we are bringing in peter orszag of lazard. during the obama administration, he served as the director of the office of management and budget. what a great person to talk to. both about the markets, the impact of higher interest rates. when you are talking to clients across corporate america in the globe, how are the rates impacting them? peter: this is clearly the central story. going forward, it is going to be how quickly does the disinflationary process play out , because that drives liquidity in the market, it drives rates, a sense of optimism. so this is the fundamental driver of a lot of those discussions. sonali: how much trou

sonali: you mentioned moving on.u told me as you launch this new firm, architect, which is to bring capital into crypto, a space that has been dented as far as confidence, how do you bring investors back into this space? brett: there is truly a wide open space for people with financial experience, with technological experience to build mature, safe tools to access these markets that resemble tools that belong to traditional investors. that is something i think we have a good shot at being able to build for them. sonali: you mentioned wanting to hire your former colleagues at ftx. have you begun to do so? how many are you going to add? does the ftx name have a reputation that complicates things as you go out into the world? brett: i already have five of my former employees hired or in the process of hiring. i am in touch with a number of other ones. this is an exciting moment for us because there are many talented seasoned professionals who worked at ftx u.s. who are going to be looking to find their next calling. i w

sonali: u.s.tors in the justice department's fraud unit, this is a criminal investigation according to the report, started fairly recently. silver gate started in 2018. silver gate was the bank of choice for a lot of large crypto companies. when you take a look here at this investigation, it comes on the heels of criticism from lawmakers as well to describe more of the relationship between silver gate, ftx, and alameda and what silver gate really knew about what was going on and whether they had appropriate disclosures. silver gate is a california-based bank that is still using a depression era backstop for the way it operates. it has a short-term funding that allows it to operate in the way it does. it is one of the more clear links to the traditional financial system when you are looking at how the crypto industry is financed. caroline: what is interesting, whether or not people can move on, some people are trying to move on by the fact that prices are rallying again. they are not anywhere near

sonali: how do you prepare for that?s you have made, you have started to pitch more diversification. it is not great in terms of historical returns. you are expecting 3%. what is the case to buy bonds? cliff: it gets back to the cowardice over timing. 60-40, do not know anyone who owns a 60-40 portfolio but we are legally required to speak about 60-40 if we talk about diversification. 3% is over inflation. that is lower than history, which has been more like 4.5%. it was 1.9% at the end of 2021. i am a little scared to call it a bubble but i thought that was pretty extreme. i do not think you want to have -- certainly not no or short these markets -- there is a risk you cannot time it. i apologize for this, my recommendations will sound like what i do for a living. i find it almost impossible, because we are allowed to do different things, i think this value trade, as guy asked me about and got me to go out on a limb on, still has quite a ways to go. we prefer adding to a portfolio that is more of an alternative. long, c

sonali: great question. trading is a volatile business.ould also say volatility in some instances can very much be their friend. they had record numbers in so many areas and have gained a lot of market share. that is what goldman is winning on in the down market. amber: thanks so much for providing that on the ground perspective. coming up, we will hear from the president and ceo of the alliance for automotive innovation on the challenge behind the federal ev tax credits. this is bloomberg. ♪ ♪ the first time you connected your website and your store was also the first time you realized... we can do anything. cheesecake cookies? [together] the chookie! manage all your sales from one place with a partner that always puts you first. godaddy. tools and support for every small business first. amber: this is "bloomberg markets." our number today is $7500, the ev tax credit. consumers are confused over whether or not they qualified. john was alone -- spoke about the challenges earlier today. >> the tax credits are already available to customers.

sonali: iq for joining us.o look at the most recent proposal, this idea about enhancing the role of custodian as it pertains to crypto assets in particular. these are not final rules but in the same proposal from the sec getting finalized tomorrow what kind of impact will that have on coinbase? thank you -- paul: thank you for having me. the short answer is none. coinbase is a qualified custodian today, was yesterday, and will remain so tomorrow. the reason is that in many ways, they operate exactly in accordance with the rules and we think that's good for the industry in good for consumers and investors. jon: what do you make of these sec chair comments that investment in visors can't necessarily rely on platforms such as coinbase as qualified custodians? paul: we have seen sec officials recognize that they can and do operate as a all if i'd custodian in a safe and reliable manner. as for others, we think that standards are a good thing. investors and consumers have a right to understand that their assets are

sonali: it's hard to know exactly when.nna fitzpatrick was the ceo you are alluding to. market value is 1.7 4 million. the one thing not disclosed about the wager was what does it really do on the downside? how low does silver date really go? is he still in the position now? to a lot of news about silver gate, including bloomberg's own reporting about inquiries from the department of justice came after the quarter. so the question is what do these options -- these are put options, what to they look like in terms of what soros has been buying? one point seven 4 million is chum change for him. again, what the payoff will be is what we are interested in. looking at big tech as well. it's worth noting that the tiger -- ed: you're on a roll. let's go for it. sonali: the reason it matters is because it is a position in question. you look at what is happening over at tiger global management and what you are seeing is a lot of selling, rather than buying. that is an important dynamic to keep a hold of after some of these funds were

sonali: sonali: it's the beginning of the year and a lot of ceos are thinking about strategy for theirs and you a month of a order where you are returning 26% on's -- on tangible common equity. what is it about the business model that is different for raymond james than some traditional banks? >> it's great to be here on set. it's really about a long-term vision. we have been consistently following a strategy. the fact we kept flexible on the balance sheet, the 26% return, we have doubled the amount of capital to be well-capitalized and you put that excess capital we have the returns because we focus on long-term growth, making the platform great for advisors and listening to the one serving their clients in making a big technology investment over the last eight years. it's given us a platform on the desktop it is leading the industry. sonali: speaking of investment, a lot of ceos are preparing for choppy times with a lot of layoffs. what are you doing in terms of hiring especially for the advisor network across the country? >> are advisor backlog is still very robust. the number of ad

sonali: i don't think it was, but it's a big deal. staking -- we knew staking is one of the things in the sec would look at when they looked at the broader crypto ecosystem. but when you think about other forms of tokenization, in fts, the fact that staking has made its way up on the list of the things the sec is looking at it a surprise. the $30 million is not a small sum. but, it's not a sum that would really break the bank for many of these companies. it is about future activity. you had this thread yesterday from the ceo of coinbase on twitter really talking about how staking is such an important innovation for crypto allowing scalability, increased security, reduced carbon footprint for the industry. you saw that as a lot of rationale for the theory of moving to the proof of state model to begin with. this is a big deal for a cerium and offering staking as a service. coinbase shares were down more than 14% on the day because how much -- of how much they have been moving disease services for clients. in the most recent quarter the

sonali: bridgewater, 120 $5 billion in assets.you come off of last year, they're clever and fund had risen about 9.5%. into the year, they were in the double digit percentages and increases. at the end of the year, they had mooted -- muted that and you sit it out which becomes the highest grossing hedge fund of all time. there is a lot of question about which strategy moving into the second half works well as a hedge fund is classically defined. what does it do in this kind of market? do you need to be trading stocks and bonds at these rates and is macro the only game in town? it sets up for an interesting year as you look at this new generation of leadership leading the hedge fund firm. citadels biggest fund was up last year so there is a lot of competition in the hedge fund world. a new generation at bridgewater is seeing them through it. kriti: this is not your only major interview today. you are also coming up the heels of interviewing brett harrison, the former executive at ftx and formerly of citadel securities. what did we

sonali: you mentioned you are more expensive. what does this look like today?here is a since the banks have been constrained, is that still true? where does that put you in the equation? marc: the bank models have changed over a long period of time, moving from a lending business to the syndication business. we do not see the banks as competitors, and the classic sense. they are not looking to make loans to the companies that we are. they are looking to intermediate transactions. they have loans they made and still have to solve. it is a very different decision, can they sell the loan to someone at a price they decided some number of months ahead of time? will this company be a great company 3, 4, 5 years from now? a foundational he different question. it is a big market, trillions of dollars in credit. plenty of room for banks and private lenders. think about the fourth quarter. almost all activity was private lending driven. i'm sure the banks will come back, i hope they do. jon: before we let you go, you alluded to the fee structure. as a public company, may

sonali: it's interesting.rk who was running the asset and wealth business, the story about putting leaders up to a place where they can succeed. stephanie was a former banker who had gone over to run this consumer business and there was a time she was seen as a rising star and potential successor to the helm of goldman sachs. what does it mean for her future here to turn around the story that given her a two-year timeline to make that business break even at the bare minimum. it's a huge question mark. i would say the trading executive who moved over to asset and wealth and this is the story for goldman sachs for them to lean into. jonathan: sonali bass sick from the investor forum. tune in for her interview the goldman sachs president and coo. tom: absolutely original. i don't know what to say about it. it's so important as she alluded to, so many parts of their business are nothing short of spectacular. their place within wall street, their heritage within wall street. they go off and do this experiment. you

sonali: it's interesting from the energy perspective.hey think of geopolitics and how their investment committee thinks about navigating these markets. this was a role that got a lot of work done when the war and ukraine shifted the conversation about global energy. she had a key role there. she was recently adolfo speaking about this as well. her role is much broader here then esg. guy: it always has been. i am a huge fan. we talked to her all the time, she is so smart when she talks about everything. what does this tell us about culture at bridgewater? sonali: because she has been there for so long, i think that's an important part of this. is there a drafting shift in her being there in this role? no, because she has been there a long time. i want to point out that this is not a story about diversity and inclusion she has been there since 2008. she is the first woman to lead a spot like this at the world's largest hedge fund. culturally, there is a ship. this is a notoriously male-dominated industry. its beings measures for the asset

sonali: i'm sonali basak and this is the "next big risk."is an investor's job to calculate the possibility of the unknown. in a market navigating risks tied to the nearly $32 trillion u.s. debt load, a second year of a war in ukraine, and concerns about a global economic slowdown, the

sonali: i'm sonali basak and this is the next big risk. an investor's job to counter the possibility of the unknown. in a market navigating risks tied

sonali: these staking issue also applies to the theory of issue because it is proof of stake.s looking for ways that the crypto ecosystem falls under investor protection laws. when we are looking at a separate issue as it pertains to paxos, we are looking at this issue where they could be facing a possible lawsuit on the sec for violating investor protection laws. we have not seen sec complaints to that effect but we have seen paxos issue a statement saying they disagree with the sec staff that these would fall under federal securities law, and said unequivocally there are no other allegations. you see two different regulators extending their authority over the crypto ecosystem in two different ways. the only thing the paxos ecosystem has in common with the staking issue is the sec putting more under their wing in crypto as it pertains to existing protection laws. ed: let's continue the conversation and bring in clara medalie, director of research at kaiko. when we think about the paxos issue, you believe there will be a pretty profound impact on stablecoins broadly. what will

sonali: i'm sonali basak and this is the "next big risk."n investor's job to calculate the possibility of the unknown. in a market navigating risks tied to the nearly $32 trillion u.s. deb

sonali: we have been waiting the last six months to see who will be the new head of carlisle.that after lee stepped down, it was a big question on wall street. what does harvey schwartz then bring to the table? since leaving goldman sachs in 2018, it's about time. he has been rumored for a lot of positions before, including ceo of wells fargo. him taking over at a private asset farm -- firm, it's pretty crazy to hear. the pitches interesting. harvey schwartz rose that the ranks there, particularly at goldman sachs. he was a sales executive for a long time as well. in that time, he had built a lot of relationships with clients, investors around the world, sovereign wealth funds, which is something that could come in handy when the fun rising has been difficult -- fundraising has been difficult. the other thing to keep and i out for, for harvey schwartz and assistance, is the talent story. what is this going to do to bring people together, to improve morale after such a big shakeup at the top, after some senior executives have left? kriti: there has been a bit of musical chairs,

(upbeat music) sonali: i'm sonali basak and this is the next big risk.is the investors job to mark the unknown. an environment to mark the

sonali: i am sure nelly basket and this is the next tash im -- i am sonali. a second year of a

kriti: sonali, your take. apollo -- sonali: apollo has the biggest percentage of assets dedicated to yield strategies, almost three fourths of the firm. i talked about credit suisse, they launched a new company with about 200 people with the securitized product group as part of the new company, atlas sp. you take a look at the shares today, off about 7.4%, really the reason they missed estimates and it came to earnings had a lot to do with principal investing. this is classic private equity, the challenge of selling companies and monetizing investments and a time when markets are rough. they spoke to that and said principal investing is below the multiyear target, but it could come back at the end of the year. private credit is not an easy game, either. there is another person i talked to, aries reported earnings. they have been a quick growing, private credit company. in a conversation with the ceo, he told me the markets are fine and you will see them have willingness to write larger tax -- checks. aries and

sonali: i'm sonali basak and this is the “next big risk.”investor's job to calculate the possibility of the unknown. in a market navigating risks tied to the u.s. debt load, a second year of a war in ukraine, and concerns about a global economic slowdown, the biggest

sonali: the answer to that is no.guring out how difficult it is to take on risk in this environment. the positioning, you had soros fund management buying investment grade etf's. they are leaning into direct lending, safer credit, elf uds's third-largest position heading into last year. we heard paul or speak privately to a group of investors a week or two ago down in miami worried about the environment ahead. he did not load up on more high-yield debt. he bought hyg, two of the biggest position ads in the last quarter. you see a lot of selling of equities moving into high yields. does that maintain itself as the better trade? alix: you mentioned the tiger cubs, how did they do? sonali: tiger global lost 40% last year. they sold more than they bought. one notable tiger cub was maverick which added more than 100 positions during the quarter. they added more than they sold which is a sentiment shift after we saw so much equity selling at the end of last year. this year, the big fundamental question here, is it better to

joining us is sonali bassett.ali: we knew bonuses would be down as much as 50% of the idea it's postponed when we are weeks away from when they're supposed to be delivered is a tough blow for bankers at the time there trying to restructure. find new investors for that business. potentially spin it off and hire new ones. it's a complicated situation. businesses they are leaning back out of. and this is moving alongside some of these deals. a lot of moving hard -- moving parts. when decisions like these are being made. >> in terms of the timing everything seems to be coming together quickly. a story developing. apollo talks to take a stake in csfb. can i conflate those stories. >> apollo stalks, the reason this is interesting is apollo has been working closely with credit suisse for the special products group where there already will have to be maintained relationship with credit suisse, things are credit suisse will be doing. to maintain a relationship with these entities being spun off. i have to say you have to r

sonali: the founders of carlisle have 25% of the firm.t the end of the day. the message off the bat was that there is a unanimous decision of naming harvey schwartz the ceo of the firm moving forward. what will be interesting to watch is how he brings the firm together, how he consolidates and brings morale further up after such abrupt of people -- abrupt upheaval that happened last year. carlisle is changing quickly. if you look at carlisle, they employ more people at their portfolio companies than almost any firm out there, almost one million or so people among employee base at the company. they have had this expanding credit operation and there have been challenges over time as they look to diversify, grow, build in these different areas. the idea is bringing in an outsider somehow will improve that morale. bringing these people together again as they are in an extraordinarily difficult environment. tomorrow, they will report fourth-quarter results as well as full results. concern is, what kind of environment are we heading into after

this will be a good laser of it to lay sonali as of the virus and for your hospital there was an i am for more mazda mazda mazda, the own one more moment, finalize push on button alone. she go oh my thank you, i'm fine. how do you this is your mom? no, you're pulling the n g o which helped them leave. afghanistan is covering most of their expense groups as the days go by, the family start english lessons on how you to prepare for life in canada revenue for better. well man, ours and the keyless, eldest daughter, amana are more proficient and ingratitude, akilah her husband and the boys. practice b a, b c, b, e, d e k. i missed it again, i do, i just want to know was some invoices your permission for my up you can get in touch, see how to get more me set him up to english. moving him because that has the condo . i'm not quite sure how to make one of my best on him. the one i'm by the color mater call us on hossa miss up. come on. you can push off. going to save us every day with my sister and my mother. she manners also wants to refine her language skills. she is desperate to resume he

sonali is going to sit down with goldman sachs president and ceo.ion and radio looking to see what john has to say. burke radio, much to say there. inflation out of the euro zone. massive repricing of the ecb. now 4% this is bloomberg. ♪ . >> from the world of politics to the world of business, this is balance of power with david westin. david: from bloomberg world headquarters in new york to our television and radio audiences, welcome to "bloomberg balance of power". and that challenged president biden proposal to forgive student loan debt. elizabeth, what have we learned from the oral argument so far?

sonali: not seeing moves of that magnitude -- kaylee: by and large the s&p attempting to snap a four-day losing streak higher by a quarter of 1%. beneath the surface there are some big moves including nvidia. talking about a 14% game on the day -- gain on the day. the stock was worth more than 200 billion dollars more than it was at the start of this year. february is not even over yet. mark alana bullish forecast. aided by ai. in the bond market, literally nothing going on. the 10-year is unchanged. this is noteworthy because it's a snapping of a losing streak after six consecutive days of losses. we are seeing a bit of a comeback for wti to 75.54. guy: let's talk about the u.k. economy. the u.k. economy has been something of a laggard. in the post-pandemic era it struggled to come back to where it was pre-pandemic while others have hurdled that level with ease. you can see that in the chart in front of you it's been a difficult run. britain has underperformed. the labour party wants to change that. the conservative party wants to change that as well. we heard that from many past prime

sonali: they say their business is not like, for example, the business that recently settled with thehout admitting wrongdoing, but when you look at coinbase and top with their chief legal officer, they say they are different. what is material is the cfo told bloomberg that they are not planning on disclosing another regulatory matter to this effect, and that chief legal officer in a podcast with "the scoop" said that they did not receive a wells notice tied to the staking service. those are things clear for coinbase right now. they still have a regulatory overhang. we spoke with an analyst who is more concerned about the moat when it came to coinbase, but when you look at the institutional business, their ability tied diversified, that is a story they are leaning on. ed: that earnings call kicking off in about five minutes, we will keep track of the headlines. caroline: coming up, the price of a blue check. meta is following in twitter's steps as it charges for verification. we will discuss with a former twitter employee. are you going to do it? this is bloomberg. ♪ these days, our h

meanwhile sonali basak we thank you so much. let's get on to other crypto news.have been new charges brought against bankman-fried. the u.s. says involved in two seeking illegal assets. a potential to be the biggest infusion of illegal money into u.s. politics in decades. what else do we have coming up? ed: a big exclusive interview and how soon we can expect him to take off. this is bluebird. ♪ ♪ go. go lights. go big city lights. go spotlights. go stadium lights. emerson software helps clean energy become reliable electricity. go “good night." go boldly. emerson. ♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family or passing down the family business or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? >> in fact, from our point of view when it comes to tesla a thomas, -- autonomous platform is much more important than their electr

romaine bostick alongside sonali basak.dy to start the close trade >> the s&p still down on the day. romaine: keeping an eye on some of the technical days. a few weeks ago we were talking about the big break on the moving average grade those averages being tested to the downside.

shery: the goldman sachs president and coo speaking to sonali basak.wings in alibaba shares, now pushing to october levels. we have more on the $85 billion round ahead. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. shery: mexico's president has announced that tesla will build a new plant in the northern state of monterey. he says elon musk has given environmental assurances, including the use of recycled water. he says musk was responsive, understanding of mexico's concerns and accepting of its proposals. a key supplier of apple products says rising geopolitical tensions could push them out of china faster than many observers anticipate. the deputy chairman of airpods's manufacturer says they are investing in a new vietnam plant and considering an expansion in india. he says u.s. tech companies have been urging supp

plus, some comforting news if you're sick of city life, escape to the country presenter sonali shah tells and water. in general, people are very devastated, but there is a sense of hope in the community. people trying their best to help others get family members out of the debris, and just sharing things that they can. it's national apprenticeship week this week. it's in its 16th year. so what's it like to do an apprenticeship right here at bbc london? i'm amaya, i am on the fast track production apprentice scheme here at bbc radio london. i'm chelsea, i'm on the advanced journalism apprenticeship here at bbc london. we have our first meeting at 915 to find out what different stories are happening with different teams and then we get to work on them. usually we will plan a show from the week before, but we will leave about three or four gaps in the show where we can add on—the—day stories. somebody else on my course was a teacher beforehand and this has been like a big career change, so lots of people come from different pathways and have different levels of experience, but we'll get to h