ahhhhhh ahhhhhh ahhhhhh ♪ sonali: this is "bloomberg markets." i am sonali basak. time for the stock of the hour. we are watching shares of macy's after it rejected a takeover bid from art-house and brigade. it represents about a 19% premium to the closing price on friday. the macy's ceo says the proposal is not actionable and fails to provide compelling value for shareholders. we will discuss this with one of the activist investors. when you looked at macy's response over the weekend, how do you plan to respond again? >> good question. i think that is largely going to be dictated by the company's moves over the coming days and weeks. our sincere hope is they send us an nda so we can share more information on financing with them that we requested on multiple occasions and also get access to additional information that would enable us to increase our offer as we indicated when we initially made the offer over seven weeks ago. sonali: at this point, what would it take to get a deal done? would you bring in additional investors? how much would you raise the offer to m

sonali: i'm sonali basak and this is bloomberg real yields. it was hectic for europe and the united states this week. a strong lineup of sales saw volume top 704 billion euros in europe. notable names included credit agricole and hyundai. it was not just corporate issuance at was busy. you had sovereign sales from mexico and indonesia. mexico's was the largest deal on record for the country. u.s. high yields off to a slow 2024. annual projections are different. bloomberg intelligence forecasts full-year volume to approach $250 billion. when talking about credit blackrock's amended item talks about the reversal so far in 2024. amanda: this is a course correction from what was perhaps over exuberance in the last part of 2023. corporate credit spreads tightened significantly to levels that were likely unsustainable. this is probably a healthy correction for 2024. the narrative of credit is all about the cost of capital and refinancing activity. we can have a pretty supportive set up for credit risk especially for yield based buyers. sonali: jp mo

sonali: i am sonali basak. this is "bloomberg real yield."ion block where we are seeing issuances at a blistering pace. debts were led by the big banks, all with offerings this week. it wasn't just the big names. regional banks are joining the rush. pnc, u.s. bancorp, citizens with over 7 billion in combined sales. with all of this action and still only two weeks left to go, this month is already the second busiest january on record. bankers have been busy. there's been nearly $150 billion in sales. double line's jeff sherman lays out his playbook. >> you want to be in the middle in terms of credit quality. being good enough in this market with credit is the place to be. spreads are relatively tight on these levels. i don't think it is time to be a hero and be dumbing down the respect. use this as a way to trim those exposures and try to write up a little bit in the quality. sonali: we are bringing in oaktree's david rosenberg to talk about this landscape. if you think about the time when oaktree was just a tiny asset manager once upon a time

i'm sonali basak.s looking to understand the impact of generative ai investments. is sent orders to alphabet, amazon, microsoft, and more. they have 45 days to respond to the inquiry. joining us is jackie duval us. when you look at the companies being asked to respond, you have big and small. technology giants and new upstarts, how are the impacted by this? jackie: you have the tech giants that have a big stake in this ai race. microsoft's relationship with openai, amazon and alphabet who backed a smaller startup. the ftc is asking for two things, they want to understand how these companies are intertwined. they might not have had a merger or acquisition deal, but the stakes are large in the billions of dollars and the ftc was to understand how decisions are made and what is the extent of your influence. they are asking for documents that outline this relationship and what that means for when these companies are making decisions on products that have a big income -- big impact on consumers. you have th

i'm sonali basak. let's get a quick check on the markets, because you have the s&p on a winning streak. it has been a winning week for the s&p 500, up .1%. we are flirting with the 4900 level. semiconductor index not having the same kind of day. it is way down by intel shares. you have the yield cure feeling arise across the curve here. two-basis-point change, and the 10-year yield standing at 4.13, not preaching the 4.15 level. tons of issuance announced last week. new york crude, we have hit the $76 market it is down 1.4% on the day, but still standing above $76, and at the highest level in two months. i am looking at mid-day movers on the equity side. intel dropping on a weak forecast, down more than 11.4% on the day. we had american express boosting its forecast with shares up 7% on the day. jetblue warning about the spirit deal. a lot of question about the termination and when it would happen and whether the two sides agree. you have spirit airlines down 12.2% on the day as prospects look dimmer a

sonali: you mentioned ecm. now dcm.e are in a month where we are close to hitting all-time records in investment grade issuance. do we had that mark, and does it continue into the end of the year? tyler: i hope so. $170 billion january year to date is off to annex ordinary start. with rates where they are, where spreads are, and with pricing working how it is, primary new issues coming through, that will pull forward a calendar that we think will make sure the first quarter is very busy on dcm. it has been pretty much an investment grade story as you know. as these conditions prevail, you will see more on less than investment side and less meant -- leverage finance market with additional financing in front of the wall of debt coming in 2025 and 2026. sonali: leverage financing is an important question. private financing has been hoping for the banks to stay in business to get into these deals. how are you interacting with that rivalry that has crept into the market? tyler: it is a great question. we think there is room

sonali: this is bloomberg markets. i am sonali basak.e learned in the past few minutes that google is investing $1 billion to build a new data center in the u.k. jeremy hunt spoke with francine lacqua in davos about the news. chancellor hunt: it is a big sign of confidence. what i'm detecting in davos is -- one of the great technology centers in the world. the third-largest tech economy after the u.s. and china. -- size of anywhere else in europe. companies like google are reflecting that in their investments. this is $1 billion to improve their data processing. people who use google facilities like gmail will get a faster service. sonali: for more on the investment we are joined by ed ludlow. what does google gain from expanding its presence in the u.k. at this point in time gekko ed: continuity for google cloud. it is a 33 acre site in north london. data center infrastructure. $1 billion is about right in terms of the type of investment needed to build out infrastructure like that. the line from the u.k. government and google is it wil

sonali: bloomberg real yield starts right now. quirks of the fed has a tough job threading the needle. >> cpi telling different stories. >> you fincen starts. >> economic data may compel the fed to >> do the opposite. >>it is important for the fed to addressed policy. >> >> they will deliver cuts soon. >> the market might be too optimistic looking for the first rate cut in march. >> a big risk for markets is inflation is effectively stuck. >> i suspect we will see inflation at the cpr level stuck at 3%. >> we aren't out of the woods. >> we need more data. >> the key is the course of inflation. >> the market believes the fed will ease and i do not think a lot will change that view. sonali: five straight days of two gear yield declines, the lowest level since may. the simmer -- consumer price data came out and the yield has fallen so dramatically even today. a web signing of 17 basis points on monday alone and a 30 basis points on the week. a dramatic repricing at the short end of the curve. let me pull up the board to talk about ex

sonali: thank you very much for your time. wall street week, my favorite topic to talk about, we talk about women in the boardroom for what is bacon finance, next -- what is big in finance, next. this is bloomberg. ♪ sonali: this is bloomberg markets, it is time for the wall street beat, look at what is buzzing in the world of banking and finance. we look at the gains women are making in america's boardroom and we are joined by bloomberg's jeff green. the numbers have gotten better over time, how are we away from any sort of parity? >> we are looking into the 20 30's, 2032 may be at the current rate. it was a little sooner during the #metoo movement, it has a slow down and we are still a records every year. it has been a dozen years since we have not set a record women in the boardroom. it is a slow trajectory. steady and slow, not quickening at the moment. sonali: we are in an era where dei is under pressure. beyond that, there is also a lot of concerns about hiring retention, what is different about the approach to women on

sonali: and i am sonali basak. a second day of declines.he s&p 500 is down and the nasdaq 100 also down 1%. those names on the nasdaq, the bottom performers are impacted by ratings actions by the worried about valuations -- i have a feeling that will --. basis points on the day on the back of strong economic data and the reduction of rate cut expectations. it is also setting the dollar higher, highest level since december last year. jon: aside from the interest rate story, overnight we saw some worries about the economic outlook for china. that has waited a number of stocks including caterpillar today, those shares off 3.5%. for developing story were also watching is bayer, the company is focusing on streamlining operations and ultimately, that will impact jobs at its business. deal stories have also been dominant this week. yesterday we were talking about the federal judge that said "no" to spirit and jet, together remember we saw the weakness in spirit stock yesterday. it continues to struggle today, down another 24%. and we have seen ana

i'm sonali basak.heck on the markets, because you have the s&p on a winning streak. it has been a winning week for the s&p 500, up .1%. we are flirting with the 4900 level. semiconductor index not having the same kind of day. it is way down by intel shares. you have the yield cure feeling arise across the curve here. two-basis-point change, and the 10-year yield standing at 4.13, not preaching the 4.15

sonali: it is not just the banking system.the hedge fund industry, regulators are concerned about fragility's there. not too long ago, morgan stanley lost almost $1 billion. you think there needs to be more safeguards on the non-bank system? james: there is too many participants in the non-bank system to say yes or no. you have to go subset by subset. we are talking payment by payment, private credit. go through each of the pieces, but there are always risks when you are dealing with leverage and the financial system. if you do not have leverage, you do not have lending. i always go back to there is a balanced solution to most of these debates. you can find them with thoughtful discussion with regulators. sonali: the cost of leverage is higher today than a couple of years ago. where do you think interest rates go? what will the market look like? james: they go down. sonali: how far down? james: i do not know. unlikely the fed would cut rates this year, but inflation has moved down materially quickly. it is now more likely. fir

sonali: when it happens.i: really quickly, how do you see this in of maturities coming to the market, is it this year, next year, does it signal more pain for the regional banking system? bill: hard to say. i remember doing a deal with morgan stanley a millennium ago at 38. also the. dollar i don't think we know enough. it will be asset by asset, market by market. shorter term, i have seen estimates from $1 billion to billion dollars maturing in the next year or two we. sonali: thank you for your time, bill walton rockpoint group founder, we thank you for your time. jon, still looking at a tough day. when you look at the banking system if you have almost, every bank, most banks in the kbw index down on the day with a push higher in yields. jon: and you can see some weakness in oil, commodity related stocks have been struggling. energy and materials are the two weakest components. we are looking at a cautious start to the week in new york. /natalie bass i am jon erlichman. -- first sonali basak, i am jon erlic

sonali: how soon can they come? you see a market today with a lot of excitement already built around other assets. sandy: that is a normal progression path. there are many coins that have hit large racket -- rapid caps within the space. why stop with just bitcoin? there are other opportunities in different opportunities. ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it is more of an app development platform and fosters its own ecosystem. that is a slightly different proposition than bitcoin. in all portfolio theory it is better to have multiple than a single. so it would not be reasonable to expect bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put their money into this space. sonali: earlier in your career you had a career in the commodities markets. a lot of people will liken this to digital gold, like an etf that would be backed by gold but now backed by bitcoin. do you agree with that cat

sonali: i'm sonali basak. on the s&p 500. more gains in the nasdaq 100. the dollar spot index does not know what to do. a lot of economic data today with payrolls and ism data and we were all looking at the dollar down on the day. now it's pretty much unchanged. the two year yield also unchanged. around 439 on the day. crude is back on the rise of little on the day. 1.5% higher on the day. about a 78 handle, nearly a 79 hand on brent crude, higher than the start of the week. amber: stunning. job days. see ofcom out there. nvidia is popping out there, getting a big endorsement from bank of america. in a note to clients today, saying the company can generate $100 billion in free cash flow trading at a 20%-30% discount to other magnificent seven peers, despite double and triple free cash flow and revenue growth profile. different for volunteer. jeffries downgrading to underperform saying ai height is overblown. possible mna news. maybe the first big deal of the year. reports of by the wall street journal that synopsys is looking to buy ansys in an all stock

sonali: that's one way to hedge the bond market.here is a quote that says they expect 2024 to be the year of central banks orchestrating the soft landing but they recognize the downside risk may outnumber the upside ones. do you see a view that reflects the downside risks? abigail: you have to look at both possibilities. the downside risks are certainly there. the federal reserve may not cut as much is expected but this was a great year for allocation decisions and that means size sectors and style. from a size perspective, you would want to go toward large caps. people might say that's technology but i have a harder thing seeing that. you would go more toward value rather than growth. that would be the case for an upside surprise as well. you want to go more toward small-cap and away from that magnificent seven. if these downside risks materialize, the biggest allocation investors can make especially after last years monster rally, the best year for the nasdaq 100 going back to 1999 is to reduce allocation to equities, basically li

sonali: what about hedging?re investors flying blind into the bullishness are looking for places to hide should things go wrong? denise: for the last few months, we have seen demand for hedging, but in terms of accommodations, we have seen optimism for bonds. we see a lot of that sentiment in outlooks. a lot of people are predicting that the inflation shocks we have seen may be behind us and we do not worry about inflation so much. therefore, that sticky stock and bond correlation that was positive for quite some time will reverse and maybe we will see capital appreciation. we are seeing good calls from private credit, but a lot of those things are repeating from where we were last year. so far, we have seen big optimism and not really big demand for hedges and investors looking to riskier corners of the market. guy: our investors -- are investors surprise that the vix is so low? i look at the risks out there and then at the vix. the two do not seem connected. denitsa: that has been a big topic last year, even t

sonali: he tried to say i have not joined the board yet.s there anything that can be done more imminently to appease the activists? ed: he has embarked on this cost-cutting exercise, targeting $7.5 billion of savings. the criticism of the bob chapek era which preceded iger returning is that they were losing billions of dollars. they had gone all in too hard on streaming. iger is doing this cost-cutting plan. the board governance and members of the board seems to be the central battlegrounds. disney has nominated james gorman along with your me derek and value act backs them on that. blackwell has three completely different board nominees that they have put forward in disney's committee is reviewing those. it goes back to the same idea. peltz still doesn't see any of the ideas he wants addressed addressed and wants to see himself on the board. jon: we will watch the next chapter on that one cannot ed ludlow joining us on the disney story. coming up, details on the fed's internal discussions of interest rate cuts. more on that, coming next. t

sonali: let's get a quick check on the markets. the s&p 500 in record territory. 4825 up on the day. 10 year yields. higher this week. we see the pace increases cool to end the week. u.s. dollar index cooling-off, lower on the day. crude pulling off this friday. john: let's look at individual stock movers. on the deal front, a sizable ir obot selloff continues. bloomberg meeting reporting on the uncertainty around amazon's acquisition of that business particularly due to hurdles in europe, but also the uncertainty in the united states, so investors selling now and asking questions later, i suppose. three days of selling for spirit airlines after the judge said no to the jetblue deal but spirit reaffirming its commitment to getting something done. we have seen a big move higher today, up 20%. we are talking technology, but we have and tracking travelers insurance as we move through earnings season. here is a company that has put out numbers that were well received up about 5%. we will be talking about the real estate outlook in the

sonali: we have to leave it there, but keep an eye on it.is randall williams of bloomberg news. i want to take a look here at the market i want to look at the bitcoin market. it is now barreling past $47,000. five point 8% nearly -- and i'm -- the fees they are planning to charge clients. we have not yet seen the approval by the s.e.c. but it is expected by january 10, two days from now. amber: it is amazing it is already erased to the bottom and the funds are not even out. it poses a lot of questions about the funds already out there charging more. there was mention of grayscale has higher fees. canada was the first mover, but those have a fee of north of 1%. sonali: we are also seeing normal stocks barrel higher. the s&p 500 near a session high on the day. it's up now almost 1%, more than .8% higher on the day. the tech heavy indices are rising even higher. it is also on the back of a cooling in yields by a little bit. we are just under 4% on the 10 year yield. that is comfortably higher than the mark at the end of last week. keep an eye o

jon: before we go, sonali talk about consolidation.there were other players looking at these returns and they are interested in doing deals, what should we be watching for? >> if there is more consolidation you will see it among the smaller funds, most likely to get picked up and it could be strategy specific if there is an expertise, it could be funds that are underperforming and if they are looking to grab talent in a cheap weight. it could be for the outperformer that they are known for doing a good job, generally speaking or looking at the smaller sized funds being bought out by potentially the bigger sized guys. >> and he seems to be watching, thank you for joining us -- a theme we seem to be watching. when for joining us. -- thank you for joining us. maybe the markets more probably want to see with the inflation numbers tomorrow look like. they're looking at a positive s&p 500 to the tune of .4 percent. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhh

sonali: yes.in the sense that you will see the fdic charges, but the crisis people felt in march, they don't feel better now. we feel pain still and you see that in places like commercial real estate. do you see it in places like auto and credit cards that could get messy in coming quarters as we see that the link wednesday's are rising. tom: they all come out with different power points. what are the first things you look for? what is the first thing sonali basak goes to? sonali: we go to the returns. to comes down to the returns on equity. it is the best clean way to gauge the banks. tom: except for citigroup, big double digit. sonali: for jp morgan. everybody else is wavering against the double digit number and it comes down to the costs. those returns cannot be gauged if you cannot keep costs under control. bank of america made that great move to increase their minimum-wage to $25 per person in the next year or so. they have a cost base, a big employee base they have to content to while managi

sonali: talk through some key dates. if you are looking at the macro calendar and where there is the most surprise, our people positioning? chris: we have fomc minutes tomorrow. we have the jobs report later this week. just before i came down here, we were seeing a fair amount of near-term call buying in the tlt. the tlt is the 20 plus year u.s. treasury. higher bond prices would be lower yield. positioning for that trend to continue. we are seeing a little bit of that. i would say we are not seeing an overwhelming amount of equity hedging ahead of those near-term events. we are on record weighting over the last couple of months not rushing to put any pressure on. as the calendar turns for the third quarter, maybe it does make sense especially if you're sitting on some gains. jon: it is interesting not all stocks obviously were created equal in 2023. coming into this year, you have the tech bowls remaining bullish. i do wonder how closely you are going to be watching that particular sector of equities vis-a-vis the broad

sonali: the macro. reason the fixed income trading figures at many banks came in below expectations is the muting of volatility. those big wall street engines are starting to sputter a little bit because you see volatility wayne. -- wain. it depends on how the year goes if their contingent on a harder landing. you are hearing the caution come in from every executive's mouth on whether things can get worse than expected, because today we are in decent territory. clearly decent is not enough. guy: interesting. are these trading bumps we have seen the last few quarters the normal story or the abnormal story? maybe in the next 12 months we will find out. politics will play a big factor in this. just to a itself front and center last night. trump winning big in iowa, clearing the first hurdle in his path to securing the republican nomination. we will talk about those results next and what it means. this is bloomberg. ♪ ♪ you can't buy great conversations or moments that matter, but you can invest in them. at

sonali: i think the bloomberg's alex webb. lome zelenskyy delivered a passionate address to the world economic forum delegate in davos , telling them this year must be decisive in the war waged on his nation by russia. it is interesting. guy, you saw him meet with a lot of the big bank ceos and taking a look at what he had to say to delegates as congress rattles on for more financing. guy: you can see the introduction as he starts to meet some of these guys. jamie dimon. i'm jamie dimon from jp morgan chess. god bless you. interesting he's talking to them at davos. he's clearly widening the lens a little bit here in terms of the approach he is taking. he knows he needs to re-up attention on what is happening on europe's border and the financing of this war and how important that is going to be. whether that message translates back to d.c. and what's happening there remains an open question. sonali: he certainly had the attention of world business leaders. we will take you back to the world economic forum. can record turn is st

a pleasure to be here, sonali.e at a point where in 2022, 2023 were very good years for m&a with interest rates going up, uncertainty around the economy. for an acquirer like us, it was a good environment, we did well. we went out to the market to get additional funding, to execute on our pipeline. adoption to raise money through equity but we had this offer that involved a hybrid type of arrangement where they give us money, there is a payment in kind rather than cash interest, allowing us to preserve maximum liquidity to execute our pipeline and diminish the dilution. given we had a clear way to allocate the capital, we decided to go with that because it could increase the value of the company and increase more shareholder value that way, delay the equity financing. sonali: tell us about the process here. there are lots of questions about crossover investors, hedge funds in the venture capital space. how hard was it to raise money at this point in time, why did you go to viking and code- -- coatue? sam: viking wa

ahhhhhh ahhhhhh ahhhhhh sonali: this is a bloomberg markets. risk series, we asked prominent leaders about how they and king about the long term challenges not yet on the financial world's radar. retirement is on top of mine for one who is assessing longevity risks. take a listen. >> the burden of retirement for americans was really dealt with by the government after the creation of social security and by corporates through the defined benefit pension plans. the burden of that has switched to the individual. and if you look at that number today, only 3% of americans have access to a defined pension benefit plan. 60% have access to rear entire mid savings, not all americans, but the ones that do, it is in a defined contribution land, with risk shifting from government and corporates to the individual, and at the moment that burden transfers to individuals, we think we will continue to see a migration of some of the most attractive income producing assets from public to private markets. john: what does this mean for the ability of the average ame

sonali: it is sustainable until they are regulated.e stricter regulations, you wonder if they can keep up these returns. on the other hand, they are not banks, not taking deposits from everyday americans, so they don't require the same galatian as a systemically important bank. there's an argument to be made that as banks are more constrained in many markets, becoming liquidity providers, these market makers have provided a tremendous service to the market. one thing to watch this year is the presence of citadel securities in particular to treasury markets, how much bigger they could become. alix: let's flip gears for a second. close to your heart. csa, we are not seeing a lot of people do it. you got an mba, not a cfa. sonali: this has been a lingering question forever. what does it take to be a wall street titan? the pass rate has fallen to 35%, lower than the historic averages we have seen. what is going on? i will admit, i did my mba, i got it in quantitative finance. i almost failed my last class. i needed two tutors to get throug

sonali: how can they diversify around the etf business?re is another thing i feel like my need to touch on here. he pointed to a very slow moving, under this surface change in financial markets. apollo is trying to work on this as well, nasdaq has been focused on this -- you are talking about a fundamental change in the way financial assets trade. you are looking at the impact of what traditional assets are less. we are taking a normal wave of private equity fund or another type of fund in the scope of etf's. it will be interesting to see what that means. the idea that everything can be moved on the blockchain technology -- what does that mean for traditional markets, it's an interesting question going forward, but a lot of great minds are trying to focus on that, j.p. morgan included. guy: we will talk about j.p. morgan in just a moment. we are back after the break and need to talk about what is happening with the big story today, opening up their books. it is fascinating, the divergence we are starting to see. citigroup cutting jobs, ban

sonali: that was absolutely my question as well.ou need to hold an etf versus the futures or other products that are out there today? why not buy a bunch of bitcoin on coinbase? another investor put it to become a when it comes to bitcoin, there is a high degree of how you physically own it. you can hold it in storage, yourself, control your own private keys, but a lot of people were not able, big institutional investors in particular, were not able to access bitcoin easily because of those custody issues. does the etf now make it easier, because you are trusting a blackrock, for example, to trust them, coinbase or another custodian, to handle assets to sell? it's a lot of trust you're putting in a system, once again, you don't own that bitcoin yourself, but you own, you know, a financial claim to those bitcoins. that is the rationale. to your point, there are products that exist out there, and does the current run-up justify what we are seeing in the potential for demand? we don't really know yet what the demand will be. alix: does

sonali basak is here without.ere has been a ton of wall street speak over the last 24 hours in davos as well. what did you make of what you heard? sonali: four cuts is still a long way from the expectations we are seeing. just 15 minutes ago we were talking with our team about the bets people have been making on wall street and how many people have been pitching away from the two-year part of the curve and into the long and of the curve. if you think about that, since the middle of december rates have really gone up -- yields have gone up, sorry, very dramatically, actually the middle of december, when everyone was starting to find yields at the longer end of the curve. and so you have to wonder, guys, how much investors are feeling a little burned right now. because they started to move into the 10-year. you look even today, for example, the two-year and 10-year have been going in different directions. when we are talking about rates we have to get nuance, because there is big money at play. guy: how did these gu

joining us now is the woman who did the interview, sonali basak.g to hear his comments on the cyclicality of the ipo market. sonali: you have a sense that they are ready to spend about $200 billion in dry powder on deals, but as it comes to taking companies public, we see some prominent ipo's on the horizon in the last couple of weeks and months, the question is, is it robust enough for a firm like blackstone to start to sell among themselves? the public market is hungry for new investments, however they are slow to come. katie: credit markets have been on the back foot for a while. we will see of 2024 is when the dam breaks, so to speak. we will see more of that interview throughout the day. let's take a look at some of the stocks hitting 52 week highs and lows. we have ibm hitting a 52-week high after delivering a positive revenue and cash flow outlook this year. you also have microsoft higher after announcing it will cut 1900 jobs across its videogame division. that is about 8% of its workforce. finally, you can see you have s.a.p., a german sof

sonali: it does. that just that they did well, double-digit returns, you also have to remember they did well the year before. you also saw a lot of other funds had difficult years leading up to last year and the rebound you saw in 2023 which means a lot of funds did not meet their hurdle rates. when it comes to paying people where the money hits the road, the next couple of months will be interesting to see the migration on wall street. what will happen is funds that had a good lasher year but nothing years prior will not be able to pay people the same way the big multis have. they are charging their investors to pay their talents. we will see how it plays out this year. also new allocations and now that you have dry powder and citadel returning billions of dollars to their investors, it puts new money in the system to put to work. katie: let's go back to the recruiting and pay conversation. who are these hedge funds competing with her talent. we know big bonuses have been a little bit depressed. are

sonali: it was only a 4.3% rise.y, it bodes well for everyone else of there is optimism. the 36 million dollar package which includes 1.5 million in base salary and 34.5 million of performance-based incentives, this compares with 34.5 million total compensation the year before. last year, what was cited in the filing was jamie dimon's ability to navigate the regional banking turn oil and geopolitical uncertainties in a year where they notched another year of record performance as well as a 26% rise in the stock price. you look at that jump in you wonder what everyone else will get. guy: that's the big question. is this also a message from the board for him not to go. sonali: year or so ago, they were awarded special bonuses at the top, special awards. a number of their peers also granted these awards to the top executives. that was definitely that moment where you so the board say not only do we recognize what you've done but we want to have you stay. i took it as a concession of just how much pay is rising outside t

ed: joining us now is sonali basak out of new york. think there is a lot of eyeballs on this on a lot of anticipation on the battle between coinbase and s.e.c.. give me the basics. sonali: the basics was that you had the sec in the middle of last year sue coinbase, saying they had operated as an unregistered exchange and broker. they also targeted more than a dozen assets listed on the exchange, saying they were listed as unregistered securities. the fight back from coinbase says they should be dismissing it and they filed a motion to dismiss and we are going through the process now but this could be a long process. coinbase is really fighting a lot of definitions particularly the idea of all of these assets being unlisted securities and the meaning of an investment contract versus investment on its own. a lot of this lawsuit goes around the idea of the sec overstwe will see how this goest there is a chance this could take weeks or months. it could go well into the next year or so depending how the judges rule. this cope -- could go in

yesterday in new york time on joining us now is sonali basak. regarding this, many are pointing fingers, ultimately, it seemed to be a lot of two factor authentication. don't use your phone as your second form of authentication if that is what was happening. what did you make of the market reaction? antoni: sonali: it was a real-time test of what would happen if the sec does approve a bitcoin etf trading price spike to almost $48,000. when the news what's reversed, we have seen very sluggish movement even though many market participants, including many issuers, believe they will still get approval today. you saw the price crashed back down by more than $2000 for bitcoin. you saw it closer to $45,000 at its low. 45,500 give or take at the moment. does it get near the $48,000 high? in the coming days if we get an approval and more trade in, what does that mean for price action after that? a lot of investors believe maybe it is prized to perfection. we have seen the best in terms of movement, in terms of what an sec approval for a spot bitcoin etf

. ♪ sonali: welcome to the "bloomberg markets magazine interview." i am sonali basak. market magie

sonali: i'm sonali basak, and this is the "next big risk."e job of a financial executive to calculate the unknowns. geopolitical tensions are rising across the globe, as conflict engulfs countries in the middle

sonali: in a few minutes we are

sonali: i'm sonali basak, and this is the "next big risk."e job of a financial executive to calculate the unknowns. geopolitical tensions are rising across the globe, as conflict engulfs countries in the middle east and europe, and concern builds around taiwan and china. investors are also uncertain about the state of the economy and a divisive presidential election in the u.s. just months

sonali basak will break that down in new york city.t a bleak look from some of the ceos. citigroup coming out with the kitchen sink, saying they will be cutting dramatically. what did you hear from morgan stanley and goldman sachs, now that they are jettisoning consumer facing businesses, now that the interest-bearing parts of the business are the boom for the other banks. jonathan: we will catch up with one of my favorites right now. he does not like the cold. it is the governor of the south african reserve bank. good afternoon. how are you. >> i am good, thanks. how are you? jonathan: are you enjoying this weather? >> after coming from 38 degrees celsius this is something. jonathan: we saw you in jackson hole in late august and we still do not get the nice weather. i want to pick up on the conversation we started in jackson hole. we talked about the federal reserve frontloading interest rate hikes and every time you and i catch up it is worth reminding everybody who follows the story the original front loaders were not the federal re

sonali: from new york city for viewers worldwide, i am sonali basak, and "bloomberg real yield " starts inflation data is adding to the case

welcome to bloomberg markets i'm sonali basak let's get a quick check on the market.the nasdaq 100 also climbing higher .6% in the two year yield on a steady climb lower, six basis points lower on the day you are looking closer to 440. is

rishaad: james gorman with bloomberg's sonali basak.have the hang seng .6% lower, japanese equities under a bit of pressure as they catch up after their extended holiday. we have the chinese premier on a visit to the chipmaker yangtze memory technologies. he has at the moment been talking about the need for innovation. also of course, we are looking for any impact perhaps from the earthquake in japan. seatac says -- citi says the company is under pressure, noting that it is focusing on quality growth rather than high growth in the short term. putting sports apparel makers under a bit of pressure is the citi analyst there writing about pressure because of the surge in competition and expenses as well. that is a look at overall markets and different asset classes and how they are faring. this is bloomberg. ♪ rishaad: shanghai we have a sinking feeling again for equities in china, we're seeing these come about even as we've been better than expected read on p.m.i. services data, also while looking at the bond market there, we've got 10-yea

his last interview with our very own sonali basak.pto asset manager grayscale investments is in talks with firms including j.p. morgan and goldman sachs for them to potentially play a role in its proposed to bitcoin etf. the banks are considered to be authorized participants, firms that have the power to create and redeem shares of the fund. as grayscale looks to convert its bitcoin trust into an etf. to the biggest hedge funds. they ended the year with double-digit gains in what was a bumpy one for investors trying to navigate 2023. ken griffin's main citadel wellington fund posted 15% return, izzy englander's millennium gaining close to 10%. let's see if those gains actually sustain into 2024. that's a big concern as we have the tailwind of the federal reserve and other central banks cutting rates, and creating momentum for what is commonly known as the smart money. we go from the wall street story to the eco one. inflation numbers from north rhine-westphalia just minutes away. we will bring the data as it crosses the terminal and i

. ♪ >> live from world headquarters in new york, i am sonali basak. >> and impd groenefeld in for kaileye to bloomberg crypto reporter katie: coming up, investors are

. ♪ >> live from bloomberg's headquarters in new york, i'm sonali basak.ypto. a look at the people, transactions and technologies shaping -- >> highest level since 22022. eye-popping run fueled by the spot bitcoin etf. kailey:

that was, of course, morgan stanley's executive chairman and former ceo james gorman, speaking with sonali. plenty more to come here on "daybreak: asia." this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh haidi: we are learning more about the events that led to tuesday's collision between two planes are tokyo's another airport. air traffic control transcripts appear to show that the japanese coast guard plane didn't have permission to take off before entering a rotary where the larger jet had been cleared to land. joining us from tokyo is our guest. the details of this latest development, what do we know so far? erica: hi, haidi. we now have a transcript of communications before the crash and it suggests that the coast guard airplane did not have permission to take off and was asked to hold this for entering the runway. a japan airlines passenger jet, on the other hand, was cleared to land. crews seem to have acknowledged the instruction to taxi and to hold important. officials from