sonali: and i'm sonali basak. matt miller is up-to-date. the s&p is down 0.3%. the nasdaq is about 0.2% down on the day. the two-year and 10-both up on the day. jon: you mentioned we have an overall s&p that is a little weaker after five straight winning months. sector by sector we are generally seeing underperformance. it has been a busy earnings day and a lot of investors are excited about the caterpillar story. it continues to flex profit muscle but you have uber shares off 7%, even though they showed operating profit. the revenue story was a concern. the ceo speaking with bloomberg earlier. you have beer sales not satisfying investors. those are off close to 4%. and there were high expectations for a cruise line operator for norwegian. that stock has had a huge run and the profit outlook falling short of expectations. sonali they sure are. our next guest says equity investors should take cues from the lending market. he expects tightening credit and trouble on the horizon. richard byrne is the president of benefit street partners to talk about this. if you l

sonali: thanks.cane idalia is gathering force in it lance -- in advance of making landfall on florida. it could cause widespread power outages. the details next. this is bloomberg. ♪ it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. sonali: this is bloomberg markets. now it is time for today's for what it's worth. $15 million, that is the damage that hurricane idalia could bring as it barrels towards the gulf coast. as it swirls above warmer temperatures, it could become a category three hurricane the time it makes landfall. officials are warning it could pr

sonali: this is "bloomberg markets." i'm sonali basak.at, my favorite bead, turning down to a slowdown in the hedge fund industry. it is specifically for the funds run by tiger cubs, the names given to the proteges of julian robertson. we will bring in hema parmar are to talk about what is going on. the numbers are abysmal relative to prior years. they are clamoring to get into funds before and now they are clamoring to get out area so how much have assets dropped by? is it mostly outflows, performance, a combination? >> what we tracked is from the d regulatory filings showing in foes from u.s. clients alone. it does take into account redemptions but it does show the demand investors have had for these funds over the past 12 months. what we've seen is a start decrease, drop as much as 99%, 81% in some of the funds generally performed badly last year. so these are some of the biggest names in the hedge fund space because the name to stock pickers, some of the best for warming starkly but have a -- have had a difficult year last year and su

sonali: what about los angeles?there was a default on a loan, do you stick with downtown l.a.? brian: it is still the most second populous city in the country, there are a lot of investment opportunities. we have an enormous logistics business in southern california, it is a major entry point into the united states and there is not enough being built. we think there are great investment opportunities. housing continues to be in very high demand. we are not building enough homes. multifamily and other sectors like that. with office, there is a certain component of the market where it is more challenging because of the age of some of the assets and i think that will get worked through in time. the stte of those buildings will be repurposed into other things or continue to exist. sonali: let us talk about the defaults, there are a lot of questions about how much more the market is bound to see in terms of default rates. you are one of the biggest players in town. you and blackstone have faced defaults on certain proper

this is bloomberg. ♪ sonali: this is "bloomberg markets" and i am sonali basak.estors and bankers are avoiding saying esg in meetings with clients. they are still integrating what esg stands for in their work. it comes at a financial cost to ignoring esg esg on wall street making headlines from the ups frank to hawaii and electric being sued for its alleged role. here to discuss this is eric roston. what are you seeing in terms of how this kind of frustration or even hate with esg turning into conversations with investors and bankers with clients after so much popularity a year ago? eric: there is a great bubbling up. we have a number of systemic problems and the stress created between investors and companies, between employers and employees is creating the display of these systemic problems. you see it with the ups strike, which was resolved but it will cost the company more than anticipated. there are losses involved. fedex is seeing it, too. it is very easy to talk about the specifics -- sorry, the generalities of inequality and climate change, but when it hit

sonali: from new york and worldwide, bloomberg real yield starts right now. ♪ sonali: coming up, jayowell leaves the door open for future rate heights and speak to the neutral rate. with yields writing higher, the five-year freely yield at the highest level since 2008. we will begin with the big issue in how investors are trading on the idea of hire for longer. >> is the fed's job to bring inflation down to our 2% goal. 2% is and will remain our inflation target. the process till has a long way to go even with the more favorable recent readings. gdp growth is common above expectations and consumer spending has been robust. we expect the rebalancing to continue.to months of good dater only the beginning of what will take to build confidence that inflation is moving down sustainably toward our goal. getting it down to 2% is expected to require a period of below trend economic growth monetary restraint should show through fully over time. sustained progress is needed in restrictive monetary policy on a 12 month basis. we are attentive to signs the economy may not be cooling as expected

sonali: very interesting timing. if you look at the type of tone he might take, you mentioned he will be a voting member eerie what is it mean in terms of the hawkish or dovish stance he might take relative to esther george? michael: it is too early to tell. the kansas city fed is an unusual bank that likes to go with bank examiners so they do not have a long record in terms of their monetary policy views. we will have to do digging into him and see if he has said anything about it. otherwise, we will have to see once he starts? -- starts talking and joins the fed. sonali: thank you. let's get a check in the markets because we are near session lows. the nasdaq one hundred taking a bigger dive than s&p even as you look at it, 1% drop, more than that of the s&p and 2% drop over the nasdaq 100. dow jones industrial average also down almost 1%, .7% on the day. the vix is moving a bit higher at a 15 handle, 16 handle earlier in the day. turning to yield, treasury refunding announcement was a big deal and had lesser moves

sonali: we are going to get a check on the markets. we are back in the green for the s&p 500 and the nasdaq 100. that all coincides with a rise in crude oil. this is about range bound. we have been fluctuating between $75 and $80 for a couple of days now. 5.07 on friday and back now to 5.05. jon: we are tracking three. bloomberg had been leading the reporting there on major settlements tied to earplugs. those shares are up about 5%, hawaiian electric up more than 40% as they have tried to set the record straight on the state of their power lines. also watching health care, boston scientific and many notable standouts throughout the trading day. this after some encouraging study results. not so encouraging for nova cure with new trial data. that stock has lost a third of its value today. and we are watching this out of china. we did see is representative through the golden dragon index. trying to appease market concerns over the state of the economy. sonali: we look at attention the markets have had, this is what he had to say. >> china

sonali: especially giving the wage growth. what do you think it means for potential future rate hikes? anna: not much because the fed really cares about the employment cost index which was released last week. that showed a sharp moderation in wages, especially private sector wages. it is coming down from high force to not be .9 percent. i think the fed -- is coming down from high fours to announce 3.9%. sonali: we're going to talk markets with peter kraus, chairman and ceo of aperture investors. thank you for joining us because i bring this up every time, you were so early to target inflation. you have a lot of warnings out there. larry summers saying you can see a lot of lectionary spike. do you think the fed job is anywhere near over a given the uncertainties we have seen in wage growth, oil markets or anywhere else that can see further price increases? peter: you're nice to say those kind words, thank you for that. i think part of the problem of talking about this period of time is yet to talk about the time horizons that w

sonali has more. sonali: we knew this would apply to banks with more than $100 billion of debt and be phased over three years. analysts have said that would buffer the blow when it comes to the increased cost to banks. prior to the role jeffries had said this could have a real impact to net interest income and earnings-per-share for a number of banks. that hit could be between 1% and 3% of earnings. this three-year phasing period is important. there is also a statement that says the new requirements does not result in additional requirements for what they call total loss absorbing capacity for these midsized banks. however, it will potentially lead to a significant d eluge in issuance. some of the midsized banks leading the way. dani: i was going to say not too much of a reaction in share prices. is that because everything was expected? were there any surprises in what we learned? sonali: it is a fine toothed calm in terms of details. that phasing period is important as well as the idea they do not ha

sonali: what about the idea of exits?rates of impact the cost of financing, but the others that it is hard to sell into public markets. sales of started to come back slowly. what does it look like out there? michael: it is the reverse of the new deal market. sales are still possible. volume is half of what it was. sellers and sources are less ipo but more taking public companies private, buying corporate carveouts. that is an active an increasing percentage of our deal flow. matt: interested to hear about your portfolio companies, because you say you focus on the market leaders. what are examples of portfolio companies that are doing best for you? michael: 60% of our investment or industrial companies. industrials are often misunderstood. they have grown for 20 years faster than u.s. gdp and are still growing and many of them are noncyclical. if you're in the used truck parts business, that is a good place. if you are making orthopedic shoulders, that is a good place to become unrelated to gdp cycles. if you have consumer

sonali: how do you address security concerns as well?zing there were worries about stolen credentials when it came to world id earlier on, black-market sales, are these things you are working and finding a way to prevent in the future? alex: yes they are not surprising. essentially, first of all, let's explain what we are talking about. and what was reported on. what was reported on is users in countries where world coin is not available, china, by accounts from users where world coin is available, say nairobi, what it means is you do not sell your biometric data or anything like that. i think that was one of the major misunderstandings to clarify but rather you sell your login credentials, let's say your username and password. as the best analogy to normal use cases. and that is not in midterm a concern because as a user can just recover your account, you can go back to an orb and recover your account and what it means is the other party that acquired the account acquired something that will turn out to be worthless because the logging

sonali basak joins us now. wasn't anything materially new in these downgrades, but it seems like investors still don't like to hear about it. sonali: to the point you are making, we have seen significant downgrades by moody's, and the munis news was somewhat worse because you have seen firms placed on negative watch, whereas you have s&p saying there is a lot of stability on the most recent action. you have the kbw bank index down another 2.2% on the day, and if you see the banks that are moving the most, regions can financials, and zions. not all the banks have faced potential downgrades. s&p said zions in particular remains negative after the review. the uncertainty would weigh on the heels of these banks. remember also there is another thing as well if you are concerned about the direction of interest rates and the impact it is having on the banking sector in terms of the available securities, in terms of the health of maturity securities, and the price paid for deposits. two-year yield surging above 5% does

sonali: how big can you get?'m curious about your business because it is clear that you are in connect with the banks. how big have you gotten and who are you taking the share from? the institutional businesses have been a big focus for us over the recent years and if you take a step back, you look at citadel securities as traditionally being a retail market maker, over the last for years, we have transitioned to having a strong institutional present as well and that shows up in the fixed income space and in the last quarter, for the treasury business, we saw the most amount of volume out of all the dealers on the street. a senator king milestone for us and you look at another institutional business like are equities -- equity options -- auctions business, that is where we continue to grow. the success we have comes down to the fact that we are committed to being a market maker. i am not sure that our competitors feel the same way. i am not sure they have the same level of intensity and focus on marker -- market-

sonali: i will put this into the broader story as well.ackluster performance, these funds are doing much worse. alix: there's nothing to arb. sonali: and they keep getting held up by other regulatory bodies in the u.s. or abroad. thinking about what's happening with cma for example. we did see black night saying this deal will be closing much sooner right after labor day and so when you we think about with david einhorn i'm told his investors looking at where this market was pricing to steal he was pricing and more a 75% certainty. so you are watching for two years in a row david einhorn really coming in hot. this was a man who was also in twitter before the big buyout last year. so a little bit of patience, a little bit of sticking to your guns. it certainly paid off for david einhorn at least when it comes to an industry where folks are still waiting. dani: i want to go to the feel-good story of the day. standard chartered offering 28 -- 28 weeks of paid leave, a matching it for mom and dad. are others following suit? is this common in t

sonali: i'm going to push you one more time on the fees.son being this is a matter of competitiveness when it comes to the market and it will determine how much retail investors will pay for a product that's been more expensive than others in the past. you've had years to think about this. michael: we. when gbtc converts to an etf we will lower the fee. it is not an etf today. when it converts to an etf and becomes in that product structure and perhaps is in an environment with other competing products there will be other factors for us to consider as well. dani: join us again tell us about those fees. grayscale ceo and bloomberg's sonali basak, thank you for joining us. this is bloomberg. ♪ dani: just over 30 minutes until the end of cash equity trading in europe. some of the bite has come in. we were up about five basis points. those are now about 2.2 basis points. what really set things off out of the gate we get some regional data of inflation out of germany. hotter for another month. we got the overall german picture recently which was

sonali, great stuff. sonali basak. let's talk about what is happening with the markets right now.re having a big impact. the pmi data from both sides of the atlantic certainly having an impact. stoxx 600 up a little bit. but look at the bid back into the bond market. u.k. 10-year down by 17 basis points today. pmi data out of the u.k., france, germany, the eurozone zone not looking too clever. christine lagarde speaks on friday. i have been saying it all week, that is the story. wait for lagarde. this could be the surprise. the other story is ideas -- adidas, down by 4.73%. the ripple effect coming off of footlocker is huge and rippling across the atlantic. adidas is suffering. footlocker obviously down significant and more. there is much to speak with our guests in the next hour. ralph schlosstein joining us to discuss what the long-term story for these markets looks like. this is bloomberg. ♪ every business deserves a great deal. that's why comcast business is launching the mobile made free event. with our business internet, new and existing customers can get one year of unlimit

sonali: because of these tension there's been movements of the middle east as well. been in abu dhabi and dubai in the past few months. we wrote about carlisle cutting china exposure on the heels of geopolitical tension. they have continued to do work in the country but it's a form of fundraising. it's not just large entities. it's also wealthy individuals. there's been a massive accumulation of wealth in china that have become mass backers of private equity firms. some of this movement has gone outside of china into india, singapore and other nations. guy: i think hedge funds moving to china will have geopolitical indications. stoxx 600 up 2.69%. the huge story is fuel and gas prices. the risk we will face as we approach the winter. gareth mccartney to join us next. this is bloomberg. ♪ with personalized insights from 23andme. i did have hearing aids from another company... i was just frustrated... i almost gave up. with miracle ear it's all about service. they're personable... they're friendly. i'm very happy with them. we provide you with a free lifetime of afterc

sonali: a little of both.em pressured by rising rates and definitely did add to schwab's problems. alix: got hit so hard when that was happening. sonali: and you saw a relief after things started to stabilize a little bit. that is an important element. ratings firms and investors have a close eye on this stock because of course they could face more pressure from rising interest rates. not saying that's not a problem, it is. but when you layer on the other it eoc credit things about schwab, like td ameritrade, that becomes more strategy as it is about the macro environment and the rising interest rates they are feeling the pain of. guy: let's talk about this open meaning that the fcc is having. it is about fees. how nervous is the hedge fund community about what is happening? sonali: they are not only nervous, they are ready to take legal action if things don't go their way. we have had hundreds of pages of proposals. i was talking to who would be there tomorrow and watch the vote happen in real time -- remembe

matt: thanks so much for joining us, sonali basak, our reporter. joining next to discuss the continuing boom, this is bloomberg. ♪ if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. which for those on medicare, or soon to be, is a good reason to take charge of your health care. so consider this. an aarp medicare supplement insurance plan from unitedhealthcare. why? because medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could really add up. even thousands of dollars a year. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare today and ask for your free decision guide. learn more about plan options and rates to fit your needs. now if you like this... greater freedom... you'll love that medicare supplement plans have no networks and no referrals needed... see any doctor. any specialist. anywhere in the u.s. as long as they accept medicare patient

sonali: finally.hat will happen in the second part of the year, there are deals in the pipeline that are already there where it will be an interesting story of how they are financed, or there are going to be new deals that we may see, back -- we may see come back. we also saw a record deal when you look at finasteride, and the idea that more than $5 billion of the package was put together by private lenders. very importantly, one of those lenders was blue hour. i had a conversation with the resident of blue ow -- the president of blue owl. he was telling me in the next couple of years you could see deal package of $10 million put together by the private lenders. he told me that over a 12-month span, he has gotten at least 60 views of more than a billion dollar deals. if you think $5 billion is rare, imagine a $10 billion deal a couple used on the road. guy: blue owl, cool name. they finally get to market and then the secondary market doesn't look very clever. does that tell me about how ultimately fed

sonali: the biggest investment bank.the biggest in the world when it comes to trading now looking to potentially separate divisions. out of three major divisions they might make a bank with five different divisions including banking, services as well as the markets business where that fixed income trading desk is paid this elevates the business leaders themselves as well as gives jane fraser more insight potentially into those different businesses as they lose a pivotal leader of more than three decades at the bank. some of these businesses have done well. trading even in a downturn has held up. services exceeding expectations but the banking division. this is advisory, underwriting. not only have they been through a significant slump industrywide. you see citigroup at number seven on the m and day lead to tables which is much worse than where you normally see them standing at. they've also fallen in share in investment banking for investment-grade deals and high yield deals. there is a bit of work to be done in terms of

joining us is bloomberg's sonali basak.e for private equity to have a pipeline to offload investments. where are you at? sonali: if we look at the deals announced in the last seven days we are looking at multibillion dollar deals, significant announcements come and of those announcements we have private equity names. think about subway. as they come to the market for financing that could be more than $5 billion package. not only the m&a fees but also the financing fees associated. blackberry, we reported they are in early talks as well. blackberry give or take $2 million. you are seeing private equity -- what is private equity matter so much? if you think about 2021, where there was a massive boom of deals, you see the chart, the exits in the m&a and ipo markets were almost $800 billion worth in 2021. that has fallen by 60%. if we look at the data by bloomberg intelligence, it is not that it is going to come back so quickly, because the market has not stabilized quite enough. this is why the post labor day rush matters so m

sonali: i've been thinking about how to push the story forward. when you think about the commercial real estate portfolios and the issues the banks are facing, one early answer has been pushing this activity to the private markets. you seen private market participants come in and buy assets from these regional banks , cooling some of the pressure with these loans are worried about. the other thing that's happening on the site is that a lot of ratings are coming out not about the banks but the nonbanks. you are seeing a lot of them being rated bbb. so you're not seeing the same types of four different types of worries in the nonbanks. you are seeing everyone being treated relatively equally here. you look at the risks they are taking on loan markets so than the market pushback, you have to wonder how much lending contracts from here. jon: i know you've got some continued questions you will be asking and thank you for breaking it down for us. we also have some electric carmaker news. lucid shares are higher and rivian is rising awaiting numbers from

sonali, thank you very much indeed for sharing the details with us.we are in the markets. we are mid august but the pace is picking up. a little bit more exciting out there. you don't see that necessarily in the stoxx 600. 455, the moving average number. 453. keep an eye on that. the 200 is holding up a keep an eye on it. a boost first thing this morning. punchy cpi numbers. the last five out of six on cpi out of the u.k. have surprised to the upside. today was no exception. the call looks strong. services looks strong. we are gradually moving in the right direction but gradually is the op divert. marks and spencer is about to go back into the ftse 100. it is being pushed higher and higher and higher. up another 4% today. i think the review is in two weeks time. we will talk about the u.k. story next. this is bloomberg. ♪ hi, i'm lauren, i lost 67 pounds in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy, and you're no

sonali: you are watching them look to galaxy.is still a bankruptcy process in which ftx and john ray had looked over and looked at galaxy s8 management that would oversee a certain amount of assets. what happens from here? certain amount of these assets will essentially be liquidated and sold so they can shore up money to pay the creditors at ftx. there is a fee that galaxy would take. things could change until the court approval but there is an aspect of this where they don't want to get rid of the bit coin right away because the value in the price could change. certain number of these tokens can be sold to the market, there will be a number that will be held, managed and hedged in order to maintain the most value for the firm. c caroline: there have been some frustrations to say the least about fear they were losing money because the assets were not being sold off in a meticulous manner. sonali: the ideas they would give it somebody who could manage these assets in the most profitable way. if you are not getting your money back

. >> sonali: bankers have been griping a lot on wall street.ink about what they are actually talking about its return to work. how often do they have to be in the building and how flexible do you have to be to keep them around. >> i made a commitment in the depths of covid of two things. one was we were learning so much from how to work remotely that we were never going back precisely to how we did work pretty covid. on the other hand, if you are not in the office most of the time and if you are not creating those personal connections and not learning through an apprenticeship model you are not doing it the right way. would we've been continuing to evolve to is a model which starts with being in the office because that's where you learn, that's the best way to support the clients. that's the best way to train and develop individuals and there's no latitude for people not being back in the office. having said that you can allow technology to continue to eat invade -- to invade your personal space, be expected to get on a zoom call at a moments n

current -- fantastic coverage, sonali basak on what is happening with the wall street beat.ou have a picture developing of a government that is taking a portion out of the finance center -- sector. is this a long-term story, does he get through parliament, -- does it get through parliament? unicredit down hard on the back of that. the 10 year yields reacting to a bunch of factors but yields are lower and china is probably a big factor. there is a ripple effect coming out of the states. stocks 600 -- stoxx 600 down 3/10 of 1%. the ema head of equity sales at barclays joining us. this is bloomberg. ♪ 76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. you don't have to worry about things like changing tax rates or filing returns. avalarahhh (jennifer) the reason why golo customers have such long term success ahhh is because we focus on real foods in the right balance avalarahhh so you get the result

chenal he bassett with the take -- sonali with the take away.at is next. this is bloomberg. ♪ >> it delays our path to profitability of the business which was strengthened before. obviously there's more than just fixing the problem. we will look and say this is how we will do it. guy: speaking to bloomberg earlier on today after the company released its latest rather disappointing results. reporting problem with its wind business. fixing problems could lead to a loss of around $5 billion. rachel, how much of this is ziemann's specific. how much is industry specific and how much can extrapolate to investors later on this week. rachel: some of the problems are specific to them so those are problems with parts of the turbines can be manufactured. they've been quite quiet on the extent and cost so today this is showing how big that loss will be. some of those are leading to the offshore wind industry in their business there, to take up parts of the contract. that really does spill over to the rest of the industry because that comes from higher suppl

sonali: you have the structural headwinds.t rates being one of them for private equity firms. and if you talk to folks about this dynamic, because you're seeing these private equity businesses and the biggest alternative to asset managers become a smaller part of the pry as real estate or infrastructure, even, being more and more invested in because they're more naysent. the point you're making is private equity will still be a large part of the pie. however, there are structural headwinds in the near term including financing costs that make those other businesses near term weigh more a -- way more attractive and there are a lot of reasons for these firms to push into these businesses. now, time will tell how much money they'll keep making off those businesses. double-digit returns, how sustainable is that? do they start to compress? for no other reason that people are starting to plow into it. alix: depending on the swings too far this way because all the money is going over there. ok. so what are you watching next? like, who

guy: thank you, what a fantastic week of coverage from sonali basak. thank you very much indeed.talk about where we are in the market. europe is coming to the end of the week which has been painful for europe equities. up by .3% but on the week the stock is down by 2.5%. this is where we are right now up for 60 and we were at 470 with the key technical levels which is worth watching. german factory data we see a bit back into the german tin year yield driven largely by what is happening in the u.s. and the reaction with the payroll number. and ap is having a reaction to the market. what is coming out of this is there is slow growth but not a recession. that is telling. that seems to be where most people are at the moment. one of the world's biggest shipments -- shippers is saying that which is important. we see -- we see a stop drop today. and we look forward to our upcoming chat with the ubs chief strategist. this is bloomberg. ♪ start your dna-powered health journey today with personalized insights from 23andme. when you automate sales tax with avalara, you don't have to worry

sonali: you had the wall street journal report of three big names. group's bidding $12 per share higher than what you see. stock is now trading at 1185. it is much higher but a little closer to that -- to the other heavyweights. current management's lot not likely to keep their job. the other interesting element -- matt: current management will keep their job? under the higher bid, they will lose their job but they are supposed to be the ages of the shareholder. sonali: that's true in the point that sculptor makes as they reject this offer, they didn't name these folks by name of the point they make is financing. matt: you think the three could come up with the money? >> they have tended to in the past. the other arm of this, you do have the head of sculptor capping his pay. his pay will be capped at $30 million. even in the event of the new deal. this is a man has had compensation awards of more than 300 million dollars in total across that time. sinking stock prices part of that and affects the total value of this package. all eyesl on jimmyavin an

sonali: hi, i'm sonali basak. this is "the next big risk."ting is a business of managing risk for the long-term. in a year where recession fears abound, a war in ukraine rages

sonali: this type of management uncertainty has moved people despite the performance.ut the broader industry or a second. we focus on sculptor because it is publicly traded and more transparent than what you would see with other funds. they have also change their strategy a little bit but let's talk about it adele for a second and switch gears. they are up on the year and you have biz because they have a multi-strategy and they benefited from commodities. you look at the scope of total hedge fund performance, you have very muted performance among the largest multi-strategy fund. that is something that investors will keep a close i -- eye on this year. because it is essentially flat on the year after the last couple years of benefits here for these funds of the world. guy: you think you have a handle on one trend and then it gets whipped underneath you. some would argue that being flat is a good thing. thank you for these fascinating stories. and the idea the story of the euro today. it is 18 19 billion dollars worth of euros destroyed today. time and time again we are

sonali: welcome to the best of bloomberg invest 2023. i am sonali basak.for opportunity is a daunting challenge, given fears about a recession and historic

sonali: hi, i'm sonali basak. this is "the next big risk."ting is a business of managing risk for the long-term. in a year where recession fears abound, a war in ukraine rages for a second year, and geopolitical tensions across the globe are boiling under the surface, three wall street

sonali: hi, i'm sonali basak. this is "the next big risk."ng is a business of managing risk for the

sonali: hi, i'm sonali basak. this is "the next big risk."ting is a business of managing risk for the long-term. in a year where recession fears

sonali: some things are important.you look at the way gptc, the grayscale bitcoin trust, is trading, when i sat here with you yesterday, it was at a 15% discount to net asset value. that has gotten a little wider today to 21% as i sit here with you today. because there is still uncertainty around the path forward to an etf for gptc, more around the timeline especially. one of the key concerns here, and you heard it from michael sonnenshein himself, they don't know if they have to refile to convert to an etf in the wake of this process. there is a timeline here. we do not know whether the sec will fight the decision and michael himself said this is day one of a 45 day process in which the sec can request potentially a hearing. the ruling yesterday was three to zero so this is not quite likely per se, deathly going against what the court has said unanimously yesterday. however, it could certainly happen and would hold things up further. caroline: these things are never quick. sonali basak is always quick on the informati

sonali: that was not paco ybarra, that was the copresident of apollo global management.ings us to our next story which is apollo. movement out of the banks has gone to the nonbanks. apollo shares hitting a record high today off the heels of those earnings. guy: what is the take away from apollo? they are leaning on certain key divisions. this is a business that wants to transform the way that investors, wall street, perceives it. to what extent are today's number a demonstration of that new perception, the new idea of what apollo is? sonali: we have been talking about all week this shift away from private equity into private credit, the new meeting of an alternatives firm. the thing for apollo, it's not just private credit, they merged back with an insurance and annuities company. this is a spread business. they are firing on all cylinders. they are giving investors something to bite onto. altogether you have second-quarter net adjusted income surpassing a billion dollars at apollo, a lot of that helped by that athene business. it is showing you this permanent capital bu

going to understand what happened, it was a surprised let's bring in sonali basak. a good place to start, what did the appeals court say about the original sec decision to block an application for bitcoin etf? sonali: i think the part important here is this idea the denial of grayscale's proposal and this is according to their ruling that the denial was arbitrary and capricious because commission failed to explain the difference of treatment of similar products which was a key part of the grayscale argument here. and you look at the decision by the court, and remember there are three judges that ruled in grayscale's favor, there is a process that you have to understand. it is this idea there are 45 days in which both sides review this ruling and the sec could always push back. the other thing that is a big open question for grayscale is the idea of whether they have to refile for an etf. when you look at grayscale's filing relative to many other filings including blackrock's filing is this surveillance sharing agreement, which has largely said to be benefiting some

getting the details on the revelatory progress and understanding the reaction with bloomberg's sonaliak. explain to me, this was supposed to be a big move for the industry and you look at shares lower, hard to understand. sonali: all things start and end on where the quote -- crypto is going and bitcoin has been under pressure. the point we are making is what does it mean for coinbase to become a features clearing merchant. the idea of this was they tried for a couple years and the derivatives market and the futures market around bitcoin has become large. for coinbase to become a futures cleaning merchant, it adds another player in the market which has become smaller over the years in the broader derivatives market. for coinbase to be doing this makes this option more available to retail trailers -- traders and institutions. this is not something that will be rolled out tomorrow. it will be offered in becoming weeks. ed: approval to sell crypto features in the u.s.. in that era of tech showdowns and cage flights, there is one relationship that we pay attention to which is coinbase and

sonali basak joints me now.le host of reporting, what has the responsibility like? what is the support for a john madden -- a waldron led that she -- sonali: his loyalty and intense drug has been a hallmark of his personality. this tension to break with david kind of goes against that. you have not seen john break with david, but you have to remember something interesting. when investment bankers came and took over the top of goldman sachs, the traders dubai in large love john. he has won the hearts of the inside of the firm largely, as well as the client base. we even included this in our story as well. it is his style, his down to earth-ness. you think of people saying john waldron is blue-collar, from the midwest, down to earth. that is what they are relating to, relative to his more abrasive style. lisa: he is trained to keep that popularity as he moves toward a pretty tumultuous time. if you like this is a topic of discussion because it is a slow summer. is that all what's going on? sonali: it's kind of a s

sonali, thank you very much indeed. perfect. sonali basak with the wall street beat. let's talk about what is coming up. let's talk about the fact that we've got the european close on the radar screen now. what we are seeing today is actually a little bit of selling. so remember, we've been camped around the 460 level. we're kind of trading a little off that now. 454, we're down by 1.1%, let's call it that. so a little bit of action certainly in the equity market, volumes are super light. so just remember that as well. we're also getting action at the front end of the curve. unsurprisingly, after we saw such strong wage data. today, the market's beginning to look again at the possibility of the bank of england being forced to go. another 50. was the bank of england a little too early maybe to call the idea that we could be seeing a pause in rates and then want to talk about this. we were just talking to this talking about this with the ukrainian energy minister. they are storing a lot of gas in ukraine right now for europe, but that gas continues to spike. the reason

sonali basak is here. why are venture capital companies worried about these new rules?i: you have to think about other funds like tiger global moving into the equity structure, venture capital structure. what they are initially concerned about is straightforward. very much new rules for $17 trillion industry that hadn't faced this much disclosure or scrutiny before. the industry has ballooned meaningfully. i will say that even though they are concerned about these new rules, one of which involves sidecar vehicles, which is preferential treatment that often applies to large investors , the sec is trying to level the playing field in terms of fee structures. importantly, there have been large when he w -- large wins. when you look at the open meeting they are discussing these rules, but the commission is made out of five members in which three of them are democratic and expected to vote in favor of the rules. where the industry has won is the idea of a grandfathering provision, investing agreements will -- previous agreements will investors will live on. this will be for

sonali: we talk about the paypal mafia all the time.t surprising to see paypal be the first to come out and make a stablecoin announcement. they are also working with paxos which is a longer stablecoin issuer and is regulated heavily in the united states. they are trying to get something off the ground in a way that's already regulated and well known by the regulators and it makes sense especially because if you think about the way stablecoins are used as an on-ramp/offramp and on the people the house financial services committee trying to proceed with a new bill for stablecoin legislation. a lot of movement on that front but unclear what the endgame is. paypal has 430 million users that are right for the taking when you think about the movement to digital payments. ed: the basics of stablecoin is a crypto token that's pegged to a real asset like the u.s. dollar. is that the case with the paypal stablecoin? sonali: it's fully backed by u.s. dollar deposits, treasuries and cash equivalents. it will be interesting to see how that works ov

sonali: some great on the screen.out the central banks policies in jackson hole. we will look at etf's as investors search r

. >> i am sonali basak. we are kicking you off to the close. big day at jackson hole.point 3%. nasdaq 100 up over .1%. the two year yield is at 5.05. interesting moves, three basis point hike off the heels of that speech at jackson hole i fed chair powell. the 10 year yield, st