jon: let's bring in sonali basak who interviewed the ceo earlier today. that suggesting maybe the trade train cannot be relied upon. let's talk about m&a activity. what is the outlook for goldman on that? sonali: i will bring you m&a and trading. david solomon said m&a is likely to slow. given the uncertainty in markets, the pace of m&a activity, new deal activity has slowed and the expectation of 2023 is that it will slow. he is also still seeing executives do you want to still do deals. frankly, goldman has been a big beneficiary. the investment banking business, while down overall, the advisory part that tends toward m&a, was still $1 billion the past quarter. what is the run rate moving into 2023? i want to bring you another quote he gave me because this applies to trading, leverage loans, investment banking. what they had said is they are running a tighter risk lens. they are running more cautiously. he says, i think people are watching government that markets and thinking about the places where there is leverage. i think that is important to keep in

as well as our own sonali basak. we appreciate it.can it become the beyond meat of carbs? we talk about the new startup betterbrand and their new low-carb bagel, next. this is bloomberg. ♪ emily: a bagel with 90% fewer carbs, that's what a new celebrity-backed venture is promising. it's called betterbrand, and the startup has raised more than $5 million. we went to investigate it. i assume involved a taste test. they say every bagel contains the same sugar content of a stalk of celery, and the protein content of four eggs. does it actually taste good? >> you missed the taste-test we had in the office a couple of weeks ago. but the consensus among bloomberg staffers it was that it doesn't quite taste like a bagel. most folks thought it was pretty far off from a grocery store bagel. emily: so what is the broader consensus here, not that our bloomberg team is not enough, but is this company having success? >> this company actually has just rolled out across various supermarkets. they had a big rollout in the frozen section of whole foods

we have shimao domestic -- sonali basak joining us. does bank of america need that help?> you see the interest come in strong even though provisions for low boxes are higher, -- the credit market is healthy enough to make money, and land aggressively --lend aggressively and you see bank of america benefiting. shares are 6% higher on the day and go forward because in their investment bank, you are seeing help their. you see tomorrow that -- the very high expectations for goldman even after bank of america beat on its income despite telling you that credit products and mortgages are seeing weakness in the market. could that be enough to offset pressures you are seeing in broader trading markets? goldman, as they look to reorganize your business, that balance isn't as big as you have from j.p. morgan or bank of america. both of them are rising today. >> as the industry reports results, the industry is watching the development type to credit suisse -- credit squeeze is set to begin the sale of the u.s. asset management. walk us through some of the we know. >> asset manager as

shown ali, there are -- sonali basak, there are comparisons being made to the credit suisse story. my is that a fair comparison? why not? sonali: even though it is blown out as much as it has, it is not trading at levels of the great financial crisis. deutsche bank is in a closer era, 2016, which is the more relevant person. when you are looking at credit suisse, they are within their target rates, but the macro is more difficult for credit suisse than it was for deutsche bank in 2018 when all tides were rising. there is an interesting tweet today. the point is that european banks on the cbs is a good clamshell for the problems going around, but he hated that this rumor about credit suisse was catching on online. even though it widened, it does not show an equal probability default. when you look at the five-year flock, that was less than a four-year chance over five years. many market participants are talking about how cbs is a trading issue, but i do not want to discount credit suisse's issues. in that memo, you had the ceo saying that this task is rising like the phoenix. it is n

joining how to discuss is sonali basak. let's start with you here on set. g about the investment banking versus trading revenue, that was a stark difference even more than we saw from wall street banks. sonali: not too surprising that it's worse than wall street because what you're seeing in europe is starker conditions when it comes to underwriting. what's more concerning is the drop-off. it is that losses implied on leverage loans as well. and you're seeing the roughly 150 million applied for deutsche bank. how does that position to gain share into next year. deutsche bank a little bit of share on u.s. underwriting. do they have dry powder to position into next year is the question. on fixed income it matters. this is the year it matters most because you're looking at credit suisse, looking at a pullback and a fair bit of banking systems when it comes to risk appetite. and you're seeing barclays just blow through the roof here and you're looking at the percentage jump in fixed income trading and you're seeing a jump at deutsche bank that's bigger than the

but sam bankman-fried is being eyed by texas right now, she is -- and sonali basak is here to explain of sbf's recent doings they are looking at. sonali: it is a great question because it is tied to a deal, this is all revealed in their vein of purchase of assets. texas regulators saying they should not move forward with that $1.4 billion purchase of those assets. that is partially because of this dispute over whether these are securities are not. when you look at yielding assets that are being under ftx's purview. it is not just ftx trading, it is also sam bankman-fried they are looking at. you have that question, who is overseeing the yield products that are under the purview of all of these large exchanges that are increasingly getting bigger in this game. caroline: so the white knight hypothesis of sam bankman-fried being put under the spotlight for a larger extent. sonali: it is interesting to look at what they say in the response of this. the application for license that has been pending and they believe they are operating fully within the bounds of what they can do in the inter

sonali basak joins us now from new york to explain.ain -- >> there are questions about the merge date for ethereum. are people trading ethereum more on the fundamentals than the macro story? the answer is if you look at since the merge, it is flat to down. but in the last one-month period it is up nearly 15%, it is up pretty significantly over a seven-date period. so you are seeing positive impacts on ethereum when it comes to pricing. one of those reasons is that people believe there is more deflationary impact when it comes to ethereum. that means supply is more pressured which would have impact on the pricing. bloomberg intelligence has more information about ethereum, they are positive on the trends in terms of usage over the longer term. remember the reason i bring this up, emily, is when i talk to my sources not just in crypto but the banking industry, they are watching ethereum closely on what it could mean in terms of the next cryptocurrency that could really form a backlog to the financial system. the more you see ethereum suc

sonali basak, morgan stanley out right now. ing equities come in, almost a little bit below expectations. more than what you saw. keeping their lead in that business. you don't see this much from morgan stanley, they did miss slightly on the top line on total revenue from the bank. trading business does not help. the question here is how they will be marking these losses. right through the statement to try to give you a better sense of what you can expect from those provisioning issues you are seeing when it comes to the investment banking business. revenue down 55% from a year ago. >> morgan stanley shares lower by 8/10 of 1% in the immediate knee-jerk reaction. this highlights the gap between j.p. morgan, citigroup, bank of america, morgan stanley, goldman sachs driving bigger portions of revenue from the investment banking, deal action, what is going on with markets. what does this say about the larger story from that perspective versus idiosyncratic execution stories? sonali: the ceo of morgan stanley likes to think of this

who has the latest is sonali basak. 12 years as a long time. why now? think about how quickly the most recent plans can together. two were capped as the co-ceos earlier this year and now we have ray dalio stepping back in a much bigger way, handing over voting rights to the board. incredible scoop here by erik schatzker because another fun fact, he only joined about seven years ago. a tremendous rise for a 40-year-old retired israeli military major. nontraditional background, i think it points to a lot of change ahead, a lot of change in the last 10 years over at bridgewater but also be change in the next generation of leadership for the world's largest hedge fund. the changes are happening on a high note at least for the peer off a strategy and at a time where they had debt investing in different processes over at edgewater, which we have gone the chance to talk to the co-cios and co-ceos at length with. guy: in terms of going out on the high, the challenge has always been what people like ray dalio to actually let go. our people saying that this is bei

let's bring our crypto contributor, sonali basak, for more on this. from any executive saying we bring on regulation, we want to be deemed more legitimate, but are investors seeing it that way? sonali: you have to break down what kind of investors. 60% of those surveyed by bloomberg said yes. interestingly, if you look at the type of retail investors, they were saying yes at a greater rate. if you look at the crypto industry at large, you see a lot of divergence in the types of investors more likely to buy crypto over the next 12 months on the back that. you are seeing more traders saying yes. you do have divergence in the type of investor. but there a huge difference in the volumes you are buying at that level. 60% do say yes. the regulatory party means a lot. some of these investigations are pretty nascent and the things the sec are looking at, whether it is in fts or three errors capital, which is further down the road in terms of the pickups we saw earlier this year that war more blatant and detriment to the market. a little regulation might prote

sonali basak, have a good weekend.back to twitter headquarters where ed ludlow is standing by. this is bloomberg. ♪ ♪ emily: back to ed ludlow who has been out twitter had orders all day. no elon sightings, right? ed: now. -- no. all i know is that senior engineers within twitter product teams have been summoned to meetings. in those meetings, there are tesla engineers. some -- appointments with elon musk listed as participants, asked to bring printouts of the last 30 days of the source code they have worked on for twitter. my understanding is the whole point of this exercise is to help musk understand how twitter works. emily: elon has been tweeting. making what looked to be jokes. in typical elong fashion, tweeting things that are difficult to separate from fiction. ed: what we know is individuals came outside twitter had odors behind me, they posed as twitter employees and claimed they had been laid off. sources inside twitter have shared with me this was a hoax. these were not twitter employees. we put multiple req

business with the investment bank chief says for more on that, bloomberg's scoop, let us bring in sonali basak, and emily griffey out at our global economics and policy editor kathleen hays. this is a huge scoop and we are expecting eight turnaround plan next week. what are we hearing? >> several stores have been on credit suisse because so many details of this plan are starting to leak out. we have investment banking and police expected to step down, he will step down at the big investor restructuring plan release that is at the end of october. you have news from bloomberg reporting that investment funds, sovereign wealth funds tied to abu dhabi and saudi arabia may be investors, should they plan a separation of the investment banking unit. that and a potential plan to sell the u.s. asset management arm could start to help credit suisse raise money to stave off a large capital raise. this will raise money for restructuring. if they can pull this off and a sale of the securitized private group which has been drawing interest from different firms including apollo. that could start to help them

bank of america is warning we have not seen -- i'm sonali basak with guy johnson. am excited to go global with you on this yield story. >> there are so many elements to it, sonali. how does the fed finesse going from 75 to 50? that is a big question. you have what is going on in the yen. it feels like a ticking bomb waiting to go off. have an italian element. we could have a new italian government led by maloney a while later. yields continue to go higher and that is a problem. sonali: if you look at it, if you want to pile on more areas of trouble in the market, into next week what do central bankers do to stave off the trouble in the market? that big pivot is a big conversation. guy: maybe we need to define what a pivot is. is going from 75 to 50 a pivot? or is a pivot doing nothing? i don't know. those are all things we would need to define, so let's talk about it. we were kicking this around earlier on. clearly as she mentioned, we are seeing yields back off just a little bit. our question of the day is a fairly straightforward one -- have we reached peak yields

joining us is sonali basak. walk us through what we know when the surprise you at all? we are really talking about here is an expansion of that relationship. it's also interesting on the apple side of things. what they're saying is they want consumers ultimately to spend, send and save when it comes to apple. you can take the apple wallet and automatically use your daily cash which is a percentage of cash back from apple transactions to put into automatically that goldman high-yield savings account. for goldman, they've been announcing partnerships here and there and have been tempered in the way the announced partnerships. the reason it significant is there's been fears in terms of how apple would engage with financial community moving forward. you've seen other firms to get step back in its own relationship with citigroup but apple was diving and further when it comes to its relationship with goldman sachs at a time when there've been a lot of questions around the consumer business in the face of a tougher economic environment. alix: is this how you rescue marcus? son

emily: bloomberg's sonali basak, as always, appreciate it.up, overstock, we will talk about that and more with it ceo john johnson. this is bloomberg. ♪ emily: more earnings today. including overstock. missing estimates of rising inflation, i want to date into the numbers and e-commerce trends with jonathan johnson, the ceo. they do so much for joining us, earnings beat but we saw revenue dropped more than 30%. what is driving this, inflation? is it this pending downturn? john: it's a lot of things. pandemic numbers we grew really well. it's a very promotional environment. many of our competitors have too much inventory and are working to liquidate that. that makes the environment more difficult. and of course, there is inflation and interest rates. when interest rates rise, housing sales go down, that hurts our business as a home furniture retailer. lots going into it. the good news is with all that headwind, overstock is profitable for its 10th consecutive quarter. we've got a buried asset-like business model that works. emily: how is overs

scott drexler of rx are joined --rxr and sonali basak. scott, you first. i want to ask you about the deal. walk us through the opportunity, the terms of the deal and the terms of the convertible. scott: every owner, real estate operator, has been struggling to find ways you can actually reduce your energy usage, reduce your carbon footprint. for years, we have been talking to view about their product that enables you to do that in a very effective way. this situation is, view went public a few years back and there to -- their shares have been trading down. we saw an opportunity to take an extra neri company with an extraordinary profit. and bring cap -- extra neri product and help them accelerate their business. we are injecting a convertible that converts up 25%. i am joining the board. i am a big believer in everything view has created. it has been around since 2008 and has 1400 patents, 40 million square feet of class already out. it is a proven company with a proven product at the intersection of find to address one of the greatest challenges the real

sonali basak is at -- is our wall street correspondent and was out there early this morning. having some long conversations tomorrow. give me a read on blackrock. sonali: this is the moment of truth. how could a $10 trillion asset manager fair in the face of the storm? back below $8 trillion, the lowest level since 2020. when you look at earnings-per-share, they beat analyst estimates but you are seeing long-term flows under pressure. it is important to see where the flow turns negative. negative and retail and you also see them in institutional clients. index funds. this is the end of the third quarter. how much has this continued since then? to the pressure that lisa has been talking about, institutional clients selling more liquid products. larry fink in the statement really talking to the idea that there is flow infix income that is strong and into alternatives. looking at the alternatives business there is still pressure their when it comes to currencies and commodities so the question remains -- how much more pain do they feel from there? lisa: this is a bellwether compa

sonali basak around with us. away, what are we looking for. >> we should not get distracted from the numbers themselves. we will want to see goldman still be on the things they are good at which is fixed income trading. morgan stanley with a 33% jump. we want them to hold strong in equities because the time to gain share when the industry has been going up. the rise and deposit rates of goldman have been a higher and your seeing numbers as we speak. to your point they have been spending more as those build the business. will they see that is something worthwhile or something they need to change course on. jonathan: third-quarter investment banking revenue. 1.6 3 billion. the estimate 5.6 9 billion. breaking that down between equities and figures. equities at 2.68 billion per the estimate 2.6 five. sales and trading revenue yesterday. >> that is strong beat. as a consolidate the trading businesses. of it stronger. that's with the rubber hits the road. they are putting out details on what that looks like. that will