we just did an important research item, and we decided sonali basak was better looking than david wilsoneping david wilson short today before we go to's and ali -- go to sonali, holding court down it goldman sachs. factoring in global wall street come apart of it is the seachange we've got an inflation right now. dave: alicia levine came out with one view just now. the chief strategist at bci research, based in london, figures we've got an inflation bubble going on. he's concerned that as these price increases recede, it is going to take down some industry groups in the stock market with it, specifically industrial companies and raw material producers. he had a more elaborate version of this where he put together an index that was half of each of those groups, but either way he compared it with the 10 year breakeven rate here in the u.s., the whole idea that that is a market based inflation he's looking at developed markets for industrials and materials that have moved along with this breakeven rate, and if that goes down, so do the stocks. tom: too short today. david wilson on the idea

thank you so much sonali basak. thank you -- sonali basak. thank you so much for joining us.his relationship evolve, and how did you decide to be part of this spac ipo? jason: the relationship with mark started about 12 years ago. he's been a lead investor in several of my companies and 2009. the relationship for the spac started really around our relationship with tiger global, who ended up leaving our process with $150 million check. that was a great opportunity for us to pursue. we then went to pick our own spac sponsor and ended up ticking victory park. they are a great operator. they've been in equity shareholder for the last several years. so for us, the decision was easy. the them of capital was secured. the price was set. so this was a really great avenue for us to pursue. sonali: i am really interested in tiger global's involvement because you are seeing them a lot of fintech deals. you're seeing a lot of firms like them in fintech deals. how are the hedge fund stars of the future re-creating the financial system as we know it? what are they doing that traditional ba

sonali basak, always happy to have you bringing these star guests. thank you for bringing them. this is "bloomberg markets. i'm matt miller. ♪ matt: this is "bloomberg markets." i'm matt miller. six months until level debts. seismic change to the global financial system. the shift will force $300 trillion of securities to a new benchmark. how will markets fair in a post libor world? >> libor is part of the central plumbing of the financial system . it is not terribly sexy but it is terribly important. it has been called the world's most important, because it determines the interest rate of $300 trillion worth of securities, including organ just, loans and derivatives. the system has broken and needs complete overhaul. beyond these disclosures that the libor system is structurally flawed. an explosive growth of derivatives in the 1990's and 2000 meant increasingly banks office were determined whether libor went up or down. so you had banks lying about borrowing costs. >> during the 2008 financial crisis, people started looking at banks libor and how they engage their credit and w

. -- wells fargo credit cards as well as sonali basak.e got incredibly good experience in this going back to helping j.p. morgan chase rebrand, the business at bank 1. what does wells fargo offered to the client that customers can't get elsewhere? krista: thank you for having me today. i'm excited to share the news out of wells fargo. we are announcing a new credit card portfolio and renewed focus on credit cards under our leadership and ceo charles scharf. the first card is the wells fargo active cash card. we are launching in july and will offer unlimited 2% cash rewards on purchases with no annual fee. we believe this is going to be the best cash back card out there. sonali: it is a really crowded market though. this is something j.p. morgan has been for years, citigroup, you worked at places before wells fargo. how are you supposed to compete in this space especially at a time when customers are not getting into consumer debt? krista: i mean, we are -- we have looked at a lot of customer research and watch where our consumers were spe

he spoke to bloomberg's sonali basak earlier at the bloomberg deals summit.i think you are in a global crafts game where everyone is talking to each other, they are having a blast. you get to go home, the market shuts down, and you get to go to a bar, and the meme stocks are half the conversation. so it is just, a lot of it is fun now. at every craps table, 80% of the people know they are going to lose their money can they accept it. people are going to lose their mortgage or lose their college fund. i think a lot of the meme stocks are people having fun, and don't analyze them. it is almost what roblox did. not only do you have the creation of gaming online where you can talk to each other, but you have multiple creators, reddit and the boards, people are trying to create the next game. i understand as a couple new games starting this morning in the meme stock world. i thing they are having fun. sonali: which is so funny because your son also started a fintech company that focuses around investing in poker as well. so that is the savings side of things. you

joe: let's bring in wall street -- bloomberg wall street correspondent sonali basak. it is all good now. the crisis is over. sonali: it is a historic moment coming out of such a big pandemic. now that they are all clear, what this means is you have morgan stanley who a week or so ago says they have an embarrassment of riches. they are ready to give capital back to shareholders. you have jp morgan saying they will continue to pay a healthy steady dividend as they continue to invest in their business. we are waiting for what those numbers will look like. they will announce sometime around the 28th when they are allowed to do so. jp morgan, they are expected to return the most in dividends. caroline: is it all about dividends? what about buybacks? sonali: they do have buybacks as well. it is a great question because it is more in terms of pure funds. it is the bulk of the capital return plan. the net in the story is there are a lot of homemakers saying your ratios are low. we want to see you return this money in the form of loans. joe: under the current regulatory regime,

sonali basak is here to walk us through. what are we hoping to see from the bank? >> we were expecting one by one, bank by bank. if you compare them to previous years, you compare them to wall street expectations. that banner number, the biggest was from j.p. morgan at more than $12 billion. for the lower end of the bar, it's goldman sachs, a smaller bank than the rest. now will they be or go below that is what we will be watching. romaine: we are getting region financial saying it does plan to consider a dividend read -- a dividend increase in morgan stanley saying a 100% boost. expected? sonali: repurchase authorization , the expectation was $4 billion, that goes to show you how much more money they had on hand. dividend at $.70, they double their dividend. that's what they've done at morgan stanley and these numbers are still coming in. that sets the bar quite high. $12 billion and that's what people expected j.p. morgan to bring in alone. joe: obviously investors don't like it when banks can't do dividends and buybacks. obviously there was a time that was limit

caroline: sonali basak, we wish we had more time.coming to us with that interesting news. that's it for "what'd you miss?? " romaine: bloomberg technology is up next. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> from the heart of where innovation, and power collided in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪

. -- let's bring should ali bostick -- sonali basak. >> it has been trading below ipo price, so it isollar higher. carl icahn, the company has said he is in support of this deal. there are other software companies. it is a hot market, a hot space for deals. the rational is what we see -- the rationale is what we see with a lot of private equity, that may it will do better in private hands. questions about what the next deal would look like when it comes to cloudera. and snowflake, a red-hot ipo as well. alix: is this in line with other deals we are seeing in private equity? what do you think? sonali: great question because private equity is making this big technology play. software is crowded and people go into that space when they know they can do well. what i am hearing this year is that money alone, leverage alone, will do it. letting all these private equity firms out to prove that they can be better owners than the public markets themselves. we will see in three to five years how that will work. alix: since there is so much money in this space, what are valuations looking like? y

let's get more from our wall street correspondent sonali basak. did the executive departures fit or do not fit with the strategy for investment banking? sonali: it is a great question, because we know hsbc is really changing its footprint, trying to focus on its most profitable areas and where can be competitive, in asia in particular. how can they better serve those clients in asia? that is what a lot of this will be about. they're not trying to cut down the investment bank so much they will not be adding talent, but when departures happen, it certainly does create a lot of noise. haidi: meanwhile, the business of trading is heating up on wall street as well. latest moves playing a part of this. so why are we seeing this? sonali: it is so interesting between hsbc and ubs, you are seeing so much migration. really every bank, but for ubs, what is happening is they have hired two executives from morgan stanley to lead the bank hub in the u.s. hedge funds and other clients have trading handled through banks like ubs, or jeffries, or wells fargo. now i

sonali basak is at their headquarters with the latest. what have you got? sonali: it's truly an emotional moment. there's been a lot of people here for the past several months. it's been at 37% occupancy until now. it won't get to 100% immediately, but with that said, goldman is requiring all of its employees back across the united states. there are some exceptions to that rule, but in general, this will be five days a week. they are trying to make their employees feel very welcome. they are going to have music throughout the week outside. they have coffee corners around the building to create that watercooler vibe, and david solomon himself is on the road seeing clients. it certainly does look a lot like before covid out here outside goldman sachs. people hugging, people giving high fives, certainly happy to see each other, and for the first time, about 2000 interns being brought into goldman sachs' offices as well. guy: thank you very much. happy to see yet stop raining as well. doesn't exactly say go back to the office in the rain. thank you very much, in

citigroup's tyler dickson and bloomberg's sonali basak. thank you for bringing us that interview.berg. ♪ alix: this is "european close" on bloomberg markets. markets are quiet but there's a lot happening. president biden meeting with senator capito at the white house this afternoon. the fed beige book is coming out . a slew of fed speakers come all the way from charlie evans to robert kaplan. tomorrow you have adp and initial jobless claims. a precursor to friday's jobs numbers. don't miss that. in london you get the g7 health minister's meeting in person at oxford university. the finance minister meeting will be on friday. plus netflix -- always fun to talk about netflix. that wraps it up for me in new york and also for europe. coming up, libby cantrill joins balance of power with david westin on bloomberg television and radio. if you are in the u.k. listening to radio, you can tune into the cable at the top of the hour, 5:00 in london. dab digital radio on the bloomberg terminal. have a great wednesday. this is bloomberg. ♪ in business, it's never just another day. it's the big

shery: sonali basak with the details.news to you i think when i say that some of the australian cities have always been one of the most livable cities in the world. you just have to look behind me. we are so used to seeing, when it comes to the livability index, seeing a number of european countries. vienna has always been way up there. hamburg, frankfurt. so many of these european cities we are seeing in the latest ranking, they had their positions shattered as a result of the handling of covid-19 and how the pandemic has really wreaked havoc across their health care system. there is a really distinct trend here, shery. the countries and cities that have had border closures and very low cases of covid have ranked very highly. six out of 10 cities are from australia or new zealand. shery: none of the u.s. cities are up there. we have seen honolulu and houston climbing the most but still not there. what i agree with, osaka and tokyo ranking second and fourth. i lived in tokyo and it is beautiful. i loved my time there. his

bloomberg's sonali basak is here with the latest. some ways, no surprise, but the trend is such that we really want to highlight here. sonali: you have morgan stanley doubling its dividend. james gorman said they were ready to return capital to shareholders. they have done two major deals. jp morgan have announced they would buy a fintech platform. so far, investors are biting. you see morgan stanley stock almost 3%, about 2.7%. citigroup the one major exception, because they held their dividend study while the rest of them raised their dividend. wells fargo is the other interesting one to note because even though they doubled their dividend to $0.20 per share, that's less than half of what it was before the pandemic hit and they had to grapple with a lot of these legal and litigation issues. the question plaguing investors, is this as good as it gets? are the banks playing catch-up? today it looks like generally, investors can hold onto the story, but we will see in two weeks whether they will keep putting onto that story once those

sonali basak covers wall street for us. -- do these views on real estate gel with the rest of the industry right now? sonali: when we look at blackrock's investment in real estate, there are still some areas they are concerned about, like retail. but the point he makes that is so important is how reads have lagged the broader market rebound we have seen that he expects to really come back. examples he had given were in logistics and rentals. the place that everyone is so curious about is mortgages. do you buy a home right now, let alone invest in properties that are for other purposes. alix: i love when david rubenstein said you should stay away from the buggy whip businesses. what does that mean? are we talking legacy retailers, old-school media businesses? sonali: it's a funny way he put it because the other way blackstone folks put this is digital transformation. like, the language that is being used across wall street now of that digital transformation. but prior to that, taxes was a really important part of this. becaus

alix: sonali basak joins us now. ot give specifics we saw from james gorman and jamie dimon. sonali: we knew that trading revenue is going to start subsiding at some point, but when i have conversations on wall street right now, people are saying this is going to be one of the most interesting quarters they have seen in a long time area how much has it declined across what business is at what firms? it would probably be lower than what analysts are expecting. another important part of what brian moynihan said this morning was that loan demand is picking up. that is a really important thing now because interest rates are still so low, jamie dimon and jp morgan said net interest income would also come in lower than expected this year, which i thing is one of the more undercover things people are looking at. but if your core business is in lending, there's going to be larger investor problems. guy: one of the things we have seen over the last few quarters is all of the banks doing well. there trading income has been incr

sonali basak is with us with more. how much do they pay out? when do they pay it out? lly all of the banks past. that is the expectation. we would watch for the selective results. does the fed not like anything about their operational risks? we know this is a very big year for archegos. other mistakes such as what we saw at revlon, there are still issues the defendant may look out for above and beyond -- that the fed may look out for above and beyond the capital itself. we are expected to biggest dividend yield at citigroup. however, the stock is trading more cheaply relative to their peers. they are even lower than wells fargo when you look in terms of rice to book ratio. but the big investment banks i think will be among the most interesting for investors. jp morgan, goldman sachs, morgan stanley, standout year, but they are expecting some troubles ahead when it comes to the markets still. at least a lighter trading revenue than they've had in the last year. so we will see what they end up ultimately deciding to do with that capital return, whether they will go big or

tom: we've got sonali basak on top of this story, the whole idea of waltzing back to work.hat is your reporting, r omaine? tom: goldman -- romaine: goldman brought everybody back at once, and other banks are saying this should be the template. we will see how it works out. i don't have any real insight other than that, other than to say that we are coming out of this crisis. lisa: i think there's a bigger question for the banks. we talk about trading revenues coming out and managing expectations. jp morgan shares basically flat. there is a question, can they increase lending. if the economy does pick up and people start going back to work and doing things, if the lending picks up, that will look a lot better for them. tom: i think it is very important, and it speaks to the tech move yesterday. right now on a percentage basis, i've got dow flat. nasdaq does better than the s&p 500 fractionally on a percentage basis. we have economic data coming up at 8:30. the president of the united states in brussels. michael holland later. this is bloomberg. good morning. ♪ ritika: with t

sonali basak at the goldman sachs office yesterday. james goldman. i love this man. if you can go to dinner, you can go to the office, i paraphrase. he made that quote for you. matt: those kind of quotes are not my favorite. i used to have a fraternity brother who said similar things. i think lisa is right about the markets right now. the bet is full on that the fed will hold tight. there was a great column that said the fed has to hold strong to prove its credibility. it is not just for markets. if they waiver now, they have no more credibility. tom: we are doing this with a huge amount of data and the fed meeting tomorrow. our special coverage, we will do that tomorrow. futures are green. nasdaq leads the way. whether nasdaq composite or the nasdaq 100 with big tech waiting as well. the hill not given me much. 140, whatever we were, to 148 over the last 48 hours. the real yield speaks volumes. that has not moved up towards any kind of reflationary tone. dollar a little bit stronger. yen regions bank -- weakens. the euro cannot get out of its way. international rela

bloomberg wall street reporter sonali basak is here. n you walk me through what this means for robinhood? the expectation is that this will have a meaningful impact on the ipo. sonali: this is not the only regulator taking a look at robinhood. we have reported that the sec is looking into robinhood and their cryptocurrency. the finra issue in particular is extraordinary because it is a record fine, and it pertains to what happened in march 2020. remember, back then we had seen a number of outages. on record days, clients were missing out on trades on those days. rivals had taken notice. this does not directly address what happened with the gamestop saga. this draws the question on whether this is it, or whether there are more regulatory challenges ahead as robinhood seeks an ipo. alix: so what does this do to the ipo? does it push it back or what? sonali: we don't know when this ipo is going to happen. when they file, we could have greater certainty in the weeks following that they will move to become a publicly listed company. remember,

he spoke with sonali basak at the qatar economic forum earlier today. >> i look at bitcoin in particulartal gold, so if you are going to be long gold, bitcoin is a better version because it has the same macro tailwinds, but is also very early in the adoption curve. people were scared of bitcoin a few years ago. now hedge funds are ok with it. real money managers are ok with it. insurance companies are ok with it. so you are playing an adoption game and a macro game. i'm still a big buyer of bitcoin. the rest of the crypto is a giant venture bet. ethereum and etherium-like tokens, and fts, it is -- tokens, nft's, it is all part of a new future. we are building this new architecture for the financial world that is going to be more egal a terrien, more transparent, more efficient, and more fair. you can see gen z and millennials moving towards crypto, but you can see the whole world now looking at it. sonali: i'm glad you already brought in the definition of cryptocurrency here beyond bitcoin because everyone knows generally what bitcoin is. i think people are less familiar with the other t

tom: sonali basak emails and says is this is solomon mandate? is there a tie mandate?not a time mandate. i will be one of the few when i go back to the office. tom: john hot cs, thank you -- jan hatzius, thank you for joining us. lisa, you have a very important guest. lisa: we will talk about the bounds of risk with financial stability and low yield, howard marks of oaktree capital joining us. he has had some he did things to say about where financial conditions are and the potential for an investor, the potential for mistakes. tom: after this interview jan hatzius will be on the phone with jeff currie saying what does $74 print actually mean? all the sudden oil actually a story. strategas framing out $80 a barrel on brent crude. i know no one looking above $80. the fed meeting at 1:30 this afternoon. stay with us. good morning. ♪ ritika: with the first word news, i'm ritika gupta. in geneva, joe biden and vladimir putin have begun what could turn out to be four hours of meetings. officials from the u.s. and russia are keeping expert tatian's -- are keeping expectation

. >> sonali basak with us. be sure to tune into bloomberg radio.et in-depth analysis from the daybreak team. they are broadcasting from our studio in hong kong. we have lots more ahead. this is bloomberg. ♪ shery: to have a gauge of where inflationary pressures are headed. this of course after we had chinese ppi accelerating at the fastest pace since 2008. in in the meantime, we see australian stocks trading -- waiting to trade muted as they open. ppi seeing a rise of 4.9% in the month of may year on year which is a faster acceleration than expected. month on month also beating expectations on a acceleration of 0.7%. not really that surprising given that we are coming from a very low base during the pandemic last year and also driven by higher commodity prices. and also, the previous month of april, the number has been revised upwards to 3.8 percent gain in ppi year on year, 0.9% month on month. shery: -- haidi: even that forecast was matching the high since the global financial crisis and we are seeing cpi numbers beat expectations as well. optimi