sonali: i am sonali basak -- sonali basak in this is "bloomberg real yield. for the auction block. pnc leading the way with $3.5 billion in offering. while the banks were expected to stay on the sidelines but instead flooded the market with real -- new deals, jp morgan, wells fargo, and goldman sachs all had big yields. october seeing a big drop with only $6.7 billion in sales so far. higher yields and the potential for horizon the loss was on top of mind we caught up with -- earlier this week. >> we are already seeing in particular on the consumer side a rise in rates and we are seeing things also going up. take lending is slowing down on weaker data. this will predict the economy will begin to slow down by reacting with more people falling behind on payments on the consumer side, were going bankrupt. that is what we are seeing in the data. sonali: joining us now is mike of rb advisors and smith of bernstein. when you take a look at spreads, you think nothing is wrong. but then you think perhaps things are starting to crack. at what point do spreads wide and

matt: sonali basak joyce is unse -- joins us on set. it is fascinating what he is saying.e is saying. he's saying the demographic changes are happening so slowly we become numb to it. how important is that for the labor picture? sonali: he sounds a lot like his colleague who talks about the long-term labor challenges and also the labor strikes we see across the country. he says the social contract is broken. the think about the auto workers, you have a question of wages and negotiations, they are worried about what their ceos are making. a lot of this ceos getting their compensation in stock and employees do not have access to that kind of equity based programs. he gave us an example today about how a truck driver they had worked with was able to get a package virtual when million -- grew to $1 million by the end of it. it happens when you are growing companies and allowing those employees to also grow along with it. matt: what do they say about dlmaking? everyone is waiting for it to come back. how is his view of that? sonali: where he is sitting is interesting. kkr priva

sonali basak is coming.rg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com alix: time for wall street beat. we look at what is buzzing in the world of banking and finance. they start their own hedge fund and the war on the industry they start a hedge fund to make bets on inflation. sonali basak goings us now. sonali: you talk about this. this is jury jacobs who was former capital trader starting to trade with read billion dollars. no small amount including a billion dollars in more capital. it is interesting to see more capital which was closed to investors and it is starting to have a new find. the spinoff is happening more and more especially when it comes to the park trade asset classes. there's not a lot of traders that exist in that world. guy: is that what we are going

sonali: chaim sonali basak and this is "bloomberg real yield." the final spread, the week ahead. monday, philadelphia fed president patrick harker is kicking out the fed speak and we will talk about that and a second. tuesday, bank of america and goldman sachs reporting earnings followed by u.s. retail sales. wednesday morning, to round out the big bank before tech earnings begin. and we have all of that fed speak ahead of us starting with patrick parker, philadelphia fed president, and jerome powell ending the week on thursday really big moment of the week speaking at the economic club of new york with david westin. we will also hear from many others throughout the week. from new york to london including the new york fed president speaking at queens college in london and christopher waller also speaking in london. that would be the same day wednesday as the fed releases its beige book wednesday and that is on top of the banker names and economic news we will get for a very busy week for rates coming off of an already very volatile week for inter

let's break it down with sonali basak. what were your takeaways? nali: his change in language when you think about the consumer. he is warned it might dry up and he is sticking strong to the idea that the consumer is still strong. though he sees risks on the horizon, the story on the consumer coming from jamie dimon is meaningful. another thing he talked about a lot is where he started, silicon valley bank, first republic, that competitive advantage jp morgan has. in the market it is notable how much jp morgan has been on the top line of a a lot of these big ipo's and hired poet -- talent and it is clear that jp morgan wants to make a bigger play in technology in the u.s. and abroad. guy: what does that mean in terms of how he needs to run the bank? has talked for many years about the fact that he is investing in technology. if you want to be a bigger player in technology, do you need to make those kinds of investments? do you need to be a partner rather than a banker to these technology companies? is at the way you think he thinks about it? sonali:

joining us is but not -- joining us as sonali basak. -- joining us is sonali basak. sonali: we are just getting an idea of what the jury will look like here. you are looking at a nurse, a physician assistant, a social worker who is currently unemployed and has previously served on a jury before and you are looking also at folks who are retired corrections officers and other high school graduates and a mix of people and a number of jurors that have been questioned here over the last 24 hours about whether they had preconceived notions about cryptocurrencies. in other parts of sam bankman-fried's world like affective all truism. that is another thing the jury as to a sure there won't -- there would not be negative vibes coming from the jury with serious criminal counts being faced by sam bankman-fried. the jury has been selected and we know generally who these people are, what they do for a living. how they have been questioned. opening arguments power -- are starting imminently. we will hear from the prosecution for the first time to lay out their argument and we don'

sonali basak, were you surprised? sonali: a lot of these banks have sold off meaningfully this year and if you look at the big six, you only had jp morgan up. when they are raising their guidance for net interest income, the fact that they are doing at the fourth time this year, of course they will get some love. wells fargo and jp morgan also coming in very meaningfully in terms of credit losses, in terms of write-downs. the big three banks took in more than $1 billion less of credit write-downs than expected so things were meaningfully better in terms of loans going bad. so you are seeing a lift but take a look at the kbw bank index today. it's remarkable, that i divergence -- remarkable, the divergence between the biggest banks and the rest of the industry. that divergence between big and regional is certainly continuing on the heels of these results and that choppiness is to be expected through the season. guy: this is going to sound like a weird question, but it makes sense. are the big banks a good guide for what

sonali basak filed this. report.s a critical moment in the criminal trial of sam bankman-fried. the ftx co-founder being accused of defrauding investors. his former girlfriend, caroline, who also ran alameda the hedge fund firm in question that allegedly siphon hundreds of millions of dollars from ftx and its customers. she had taken the stand today. she had pled guilty to criminal charges and is cooperating with prosecutors. bankman-fried had directed her to commit crimes, she said, as she is outlining the extent to which ftx and alameda had cooperated with each other and used customer funds including the creation of the ftt token, which investors bought into. this is the only -- the only second week of a six week trial. other testimonies could include sam bankman-fried's own brother. more to come on this trial, from new york sonali basak. rishaad: right we will have a look at what is happening in india, a look at the some of the key stories investors are watching today. we have workers at coal india proposing calli

we asked sonali basak is bankamerica the bank of america? who are they serving?he broader u.s. economy? tom: earlier, the basic idea was there is a mother banking industry focused on this rollup of banking that we have fought for decades and decades. is this turmoil the catalyst? lisa: when he said was interesting, that if there is not rank consolidation signed off by regulators, who have a history of slowing it down, that will make it harder for smaller banks to compete. tom: swiss franc stronger today. something to note given the tensions. jonathan: decent gains yesterday on the s&p. in the bond market, yields look like this -- treasuries higher by five basis points on a 10 year. on a 30 year, up to 4.91. retail sales, that number dropping. megan of barclays raising an interesting question. the message from the said speak over the last week was they do not have the bond market to do the heavy lifting for them. megan is pushing back against that. if yields are climbing on the long end because data is better than expected, maybe they need to do more. maybe you ge

gorman, morgan stanley chairman and ceo, in the incoming ceo of the bank, ted pick, sticking with sonali basakmore corporate stories. we are one-third into earnings is and in the asia-pacific and you can see where we have the data for estimates, it has been largely disappointing with 40% missing. let's see what the 70% look like at this time. as far as revenues go, this is where things have cascaded number. fun aggregates, if you add all the sales of companies that have come out with earnings before the aggregate number is 14% below estimates. as it pertains to earnings, where most companies missed earnings, on an aggregate level, we are actually flat and have come in in line with expectations. so we are still getting to the think of it, so obviously the sample size is not quite as represented yet of what the third quarter looked like for these companies. yvonne: and we have plenty more coming up. we talked about the ones coming from china that we are putting a focus on. china to free. tsingtao breweries. overseas travel permit how strong is the spending among consumers? and the big four, icbc

sonali basak will be with us.ndscape comes with challenges. from our vantage point, we see opportunities. as a top-ten real estate manager, we harness the power of a 360° perspective, delivering local insights and global expertise across public and private equity and debt. our experienced team and vast network uncover compelling opportunities giving our clients an exclusive advantage. principal asset management. actively invested. >> we are seeing increasing evidence of m&a. while we expect this to continue , the fourth quarter has seasonal continuation we think most of the activity will materialize in 2024. the minute you see the fed indicate they have stopped raising rates, the mende and underwriting calendar will explode. alix: that was james morgan -- gorman speaking on the morgan stanley sales call. that wealth management came into question. sonali basak sick -- the 8% loss is unusual. sonali: it is unusual for morgan stanley to miss, given where cash is yielding, when do they start getting back into markets?

this is the sweet spot good sonali basak will get us to the details. walk me through it. me to acquisition financing. the banks were stuck with a lot of the hung debt. pimco was one of the ones to step in -- very few people stepped in -- and bought some. they bought some when he came to apollo acquisition. they bought the debt $.85 on the dollar and they were able to offload it at $.90 or more. it has dipped more recently, and so has been very volatile, but some of the trades have worked out spectacularly for fund managers who were willing to step into the fray late last year and early this year when the markets were struggling when he came to offloading this debt. guy: sonali, who's buying? sonali: who's buying? other fund managers. it is interesting as you saw the chart were volumes and prices have come back slightly, but they have not rebounded fully. you are buying get at a discount. deafblind debt at a discount -- you are buying debt at a discount. if you have less risk at appetite, you still may be buying because there's money to be clipped from the discount. alix: a

sonali basak has been digging through it what is the juicy stuff? america had more position than others and that is a big deal. a lot of people are looking for since in the market and for bank of america to invest that much, the reason sale side research matters is because it fuels the equities business. it feels trading, and underwriting businesses. you watch bank of america in aggregate come out on top and we have mike will -- mike wilson on morgan stanley who won the strategist award here for the institution. -- i thought he has been wrong this year, hasn't he? alix: it is funny but he made that call earlier in the year. sonali: he doubled down on the bearishness that has not all played out. i think his contrarian view has been highly rewarded. he has been right about half the time when you look at his track record over the last five or six years. guy: is half the time good? alix: clearly it must be he's number one. guy: you get a hold of the narrative and it changes so fast in the market it must be so difficult for the analyst to have a call and

matt: ted pick and james gorman both speaking with r-star wall street reporter sonali basak.alk right now with mike mayo about the transition and the performance of morgan stanley. he's managing director for u.s. large-cap banks at wells fargo. thank you for coming on set in joining us. what you think about this? for so long gorman has talked about how he wants -- how he wants his succession to be after some messy successions in the past. he seems to think he has achieved it. mike: the good news is, this has been very well telegraphed. the new ceo ted pick is very well known. he has performed exceptionally. after the global financial crisis, morgan stanley was days away from failing. especially due to their fixed income business which ted pick restructured and has grown. equities came back very strong. morgan stanley, when you look at their institutional securities business, banking and markets, they are a dominant top five if not dominant top three and many times number one. that half of the company is great and that story is very good. matt: i'm looking at the stock going b

i am sonali basak for bloomberg news in new york.coming up on the program, jim jordan lost ground in his effort to become house speaker. we will bring you the details, next, and all the latest in u.s. politics. stick with us. this is bloomberg. ♪ ♪ kriti: let's get to some top stories from around the world. the founder of country garden has met with the head of china national agricultural development group. the developers said it is looking to deepen cooperations with the state owned firm. on wednesday, country garden signaled it is sent to default on a dollar bond after warning it would not be able to meet all of its offshore payments on time. over in the u.s., several republicans are preparing to enter the race for u.s. house speaker, as trump loyalist jim jordan's bid unravels. jordan, who was endorsed by former president donald trump, has remained in the race despite losing support with 22 republicans voting against him, two more than on tuesday. he insisted still that he is not dropping out of the race. meanwhile, several republ

berg's sonali basak has more. >> companies found for bigger see at the fastest rates in years.l companies have borrowed more than 500 billion dollars. fed rate hikes began in 20 trade two. -- began in 2022. despite high borrowing, debt continues to grow. by mid 2023, we will see but the costs rise. companies were paying 8.7%. in part because this is by design. interest rates were kept for higher longer. this higher rate environment has createdaounin of distrust -- distressed debt. it has jumped to around 400%. >> the companies upstream supplying, it will impact those businesses. the appetite for risk has declined a bit. it's -- >> to its high point in the 80's, interest rates have always fluctuated with the times. following the great financial crisis, have hardly been the norm. when companies have not been put off by heart rates and keep borrowing, it may be assigned that the fed needs to do more. which increases the odds and someone will get caught off sides and left take the hit. kriti: it is a story that goes global. it goes to the european rates and property sector as well.

for more on the deal, we are joined by sofi's ceo and sonali basak. anthony, welcome. why golf? it about this golf format, this virtual format, that you want to be involved with? why do you want to go down this way? anthony: our goal is to become a top 10 financial institution. in order to do that, we have to become a trusted, household brand name. partnering with well-known brands is key to that. we saw success in partnering with the nfl. we are looking for other sports. our members are where sports are happening. what was interesting about this relationship is it leverages three things we want to do. first, we at sofi apply technology to add more value. mike is adding technology to the traditional game of golf to make it more accessible, broaden its appeal, and drive more interaction with younger audiences. second, it is great, well-known brands. the pga is a known investor. tiger woods and worry also in -- and orry also investors. we are filling an important void . that is after monday night football ends in january. we will kickoff in january for 15 weeks on primetime valid

i am sonali basak in new york for bloomberg.ti: walmart seeing a pullback from people taking an appetite the pressman -- appetite suppressant. the banks are picking up on the changes. we should have to short fast fod credit for some of these companies. the also called out general mills -- international, very food focused companies. these are some of the names coup. you can really this move of appr from the has actually created a curve created a ripple effect. all that coming up on the program. germany stares down a recesion. we bring you the details, next. loving this pay bump in our allowance. wonder where mom and dad got the extra money? maybe they won the lottery? maybe they inherited a fortune? maybe buried treasure? maybe it fell off a truck? maybe they switched to xfinity mobile on the most reliable 5g network. for a limited time, buy one line of unlimited, get one free for a year. now i can buy that electric scooter! i'm starting a private-equity fund that specializes in midcap. you do you. switch to xfinity mobile today.

sonali: from new york, i am sonali basak in four matt miller. kailey: i am kailey leinz. li: coming up, bitcoin hits 35,000 as a court formalizes a victory for grayscale, opening the door for the first u.s.

i'm sonali basak in new york for bloomberg television.nty more coming up on "daybreak: asia." this is bloomberg. ♪ nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. shery: this is "daybreak: asia." we are counting down the major market opens. we saw a rebound in the treasury route and pressure on u.s. stocks being lifted a little bit. the s&p finished around session highs. oil, with the worst day and more than a year -- in more than a year. haidi: it's very interesting, the market dynamics. where watchful when it comes to the fx side of things, the yen, policymakers in japan. in south korea, we are keeping an eye on the biggest of the year ipo. annabelle: doosan robotics about the start trading. lets kick off with the moves we see for japan at the staf the day's trading. this is also the open

sonali basak joints me with you morgan stanley ceo. >> i am standing by now with morgan stanley ceo james the helm. how did it feel to be passing on the baton? >> it feels great for several reasons. one, it's time. organizations grow because you have change. you are not going to grow by doing the same thing again and again. we set this up several years ago on the board. we had an intentional process and ended up with the phenomenal aspect. we have added taking leadership roles. you are trying to drive strategy and get together a team and deal with the inevitable knock you get on the market. at the end of the day you are also trying to handed off to the next generation. it feels great. it feels right. you have been rumored to be a contender for years how does it feel? >> this was my first job out of college and to be sitting here next to james gorman, unbelievable. we look at the five-year chart, tenure chart, 15 your chart, the wealth and asset businesses have durable earnings. the global investment bank has miles to go. we are thrilled about the business strategy we have in place and it

tom: this is sonali basak's real house, folks. let's clear the air here.all nonprofitable upstart named apollo. 2500 employees. we talked to james in london. you telling me he doesn't want to hire one of these beasts from morgan stanley to jumpstart wealth management? >> the special awards at a place like apollo or some of these other private asset managers, they are like $200 million. tom: let's go there. that is the reality we're talking about. they've got 3000 bodies and he is going how do we get to 30,000 bodies? >> he has me roundup. one of the biggest question marks on wall street is what assembly like a scott cap nick have under his belt right now, because he started hps, one of the biggest private credit managers in the world. how is he going to create some liquidity for himself in this massive private credit shop that is only taking more share? remember, this was a jp morgan employee once upon a time, a goldman employee once upon a time. how do these new firms keep creating employees? >> there used to be a hierarchy on wall street. you would go to

and our own reporter, sonali basak.he house has just finished its second vote this week for a new speaker. jim jordan is not it. details next. this is bloomberg. ♪ ♪ ♪ j.p. morgan wealth management knows it's easy to get lost in investment research. get help with j.p morgan personal advisors. hey, david! ready to get started? work with advisors who create a plan with you, and help you find the right investments. so great getting to know you, let's take a look at your new investment plan. ok, great! this should have you moving in the right direction. thanks jen. get ongoing advice; and manage your investments in the chase mobile app. matt: let's get to the latest on the house searched for a new speaker. we bring in kailey leinz gary gensler earlier. let's stick to the boat. jim jordan is once again not speaker of the house. kailey: the second round is not the charm. he lost more votes. he slipped two members for him but for more turned against 10. 22 members of the republican, conference to not vote for him. we are expec

sonali basak tells us what this means. >> that is piling up.re filing for bankruptcy at the fastest rate since 2020. the record surge of interest rates is that the writ of the issue. global companies have borrowed more than $500 billion of investment that when the fed rate hike began. the vast majority was heaped on to u.s. value sheets, and despite the high barring cause, debt continues to grow. >> it has been building over the course of the last year. interest rates have increased. >> blue-chip name sell there borrowing costs rise by more than double to an average of 5.6%, while junk rated companies were paying 8.7%. >> the problem is this is by design. the federal reserve once to slow down inflation. interest rates are cap higher for longer than a lot of economists on wall street expected. >> this higher rate environment as created a mountain of distressed debt. since 2021, this sort of dead owned by riskier businesses has jumped around 400%. >> for consumer facing companies, that will impact their businesses, and those can be difficult part

sonali basak on the trial taking place, the ftx trial.are also watching what's happening in the markets right now. stoxx 600 down by 4/10 of 1%. i think we are now kind of waiting for the payrolls friday it will be interesting to see what happened. getting the reaction of the data out of the u.s.. that move has now faded. we saw a tends going through earlier on, we are back to fairly flat there as well. lots to discuss. feeling greedy or fearful? max kettner joining us to discuss peer this is bloomberg. ♪ with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money. to this day i only paid what i had to pay for the device... when i go back everything is covered. there's so much you're missing by not having hearing aids. (♪♪) we'll find you a hearing aid that fits your lifestyle and budget. unlock your risk-free trial during our limited-time sounds of autumn event. call 1-800-miracle to book your appointment today. loving this pay bump in our allowance. sounds of autumn event. wonder where mom

sonali basak joins us now. the market is reacting to this. put this into perspective. eeing jp morgan shares down 2.8% on the heels of this news. that was reported in a regulatory filing. jp morgan says this is for financial diversification reasons. dimon himself has a lot of stock in jp morgan. guy: he has a lot of stock. i saw the story the first thing this morning and i'm thinking, james gorman, you have got to be next. diversification, yeah, great. sonali: diversifying away from jp morgan. it's interesting because "financial times" has a line in their story about not reading it this way -- guy: [laughter] sonali: jamie dimon likes to stick around -- the stock is worth $2 billion according to the bloomberg billionaires index. he doubled down on the stock at different points. it used to be a talking point that he never sold a jp morgan chair. if you have never sold a jp morgan share, your wealth is concentrated. it makes sense, 12% of his total stock holdings, but he still holds hundreds of millions worth of jp morgan stock. alix: just needs to buy stuff, vacay, time

sonali basak is keeping the context of who else will be giving evidence in what shocking revelations could hear from them. sonali: i love being on set next to you but that courthouse is also fascinating. you have the witnesses starting to come up, including a developer at ftx who has been speaking about his long friendship with sam bankman-fried since m.i.t. as well as what he was told while he was working at the company. more interesting, you have gary wang, the former technology officer, cofounder of ftx, expected to testify as early as today. he was one of the people who had pled guilty and is a cooperating witness for the trial, one of three important key figures from the innerworof ftx. the prosecution has drawn out that there were only a few people that knew the extent to which this was -- allegedly this fraud was carried out. caroline: one of the key people is caroline ellison who was heading up alameda research which ultimately was attested to be sharing and comingling funds from an early date. sonali: the caroline ellison part of this is becoming more pronounced as this tria

bloomberg's sonali basak will be hitting down with both james gorman and ted prick in new york at 3:30 p.m.. as we had to the break, let me give you a quick snapshot of risk. it is all about the dollar today. assets struggling to find any strength versus the yen which crosses into 150. we are in the intervention zone. aussie dollar and kiwi dollar are taking a beating, down by at least a quarter of a percent. this is bloomberg. ♪ dani: welcome back to "bloomberg: daybreak europe." president biden and israel prime minister benjamin netanyahu have discussed efforts to your the release of hostages and boost data deliveries into gaza. biden asked israel to delay a ground invasion, but he sought no assurances on netanyahu. as biden well, i have indicated to him that if it's possible to get these folks out safely that is what he should do. that is their decision but i did not demand it. i pointed out to him if it is real, it should be done. dani: joining us for more is bloomberg's senior editor bill faries. we had that from biden but also impassioned lines from netanyahu about israel fightin

sonali basak conducted that interview for us and joins us now live on set in new york.to hear that he is so off mystic about the economy. the problem for them is their counterparties are not closing deals. sonali: it is really hard to do a deal right now. for him to say yes they are coming back but no sense of when exactly. he said things have to stabilize in treasury markets. we are looking at these volatile interest rates and it's not helping deals. privately as well, even those massive private credit funds across the industry, they are telling me we are also seeing a real dearth of supply out there for new deals. they are also hoping it comes back. it is interesting because this all means the assets under management at blackstone are below expectations for the current quarter. so are inflows. they are coming in but below what analysts expected. performance is contingent on those deals, those exits and the ability to profitably exit existing investments. by the way, they are sitting on $200 billion more than that of record dry powder as well. getting that to work is o

annmarie hordern is here with me and sonali basak has been parsing through the numbers. details from these earnings that we can draw a conclusion on. sonali: one thing jp morgan says in terms of caution for the industry, he says these results benefit from our over earning. don't expect this to be normal. he raised his net interest income at least three times. can you imagine that many times saying they were going to make more money? lisa: there is a bigger take away here. john was asking this earlier, how much is this pr saying don't look at us we don't expect to earn this money. or is this something that is a tea leaf of what they expected come. same to regulators, we are not really making bank is a court of the moment? sonali: they are taking to washington soon. the big banks will be facing lawmakers for their annual grilling. i love listening to this one. they are making stunning profits in this environment. they can also say this is the u.s. consumer. consumers still want to borrow and spend money. spending is starting to normalize. the strength of the consumer is ke

this is something we pointed out according to sonali basak yesterday.izens financial missing on net interest income. ally financial missing on net interest margin also having fewer auto originations than thought. how much is this story dividing even further between the biggest banks and regionals that are still in a world of hurt? gerard: it is a good point because some of them have been picked out amongst the big regional banks. citizens the only one missed today. you look at others come there in line to slightly better, but you're right about certain banks have missed and it has to do with about the deposits, banks with the non-interest-bearing deposits are going to do very well in this higher rate environment because those deposits do not pay any interest. but they did not move either. people need operational accounts. as well as companies. that money is gold. i -- that money is gold in environment like today. jonathan: when i read the comments from brian moynihan in the interview, i was surprised because he talked about the consumer slow down. retai

lisa: sonali basak will sit down with ted pick. with ford, ford offering to restore cost-of-living allowances, pay increases over the five-year term of the contract read they're expected to reach or exceed the unions 30 percent target according to reporting for bloomberg. tom: i am glad you brought this up. if you look up at chrysler, it is like, what do we do? what is the celt what for the other two companies? katie: looking at the negotiator, uaw told ford workers to go back to work to put pressure on the other two. we will see when that materializes and it may be some bills. lisa: you pointed out ups, some of the deals the companies are cutting two, how much does it shrink margins. the ecb rate decision just under two hours away. central banks keep rates on hold for the first time in over a year. they're going to science their run of hikes working to bring down inflation. economists serving unanimous predicting a hold. the team at the bloomberg economics adding ecb to communicate main policy rates on hold for the first half of n

. -- bloomberg sonali basak is joining us. erenberg the chairman and ceo of rithm capital . sonali: thank you for joining us if you have not heard of rithm it is because it is a new name. when we fast-forward to today, you look at about $1 billion worth of acquisitions in six months including a human it -- a unit at goldman sachs, what is your ambition and what you are trying to accomplish here? michael: the company was started in 2013 as a spin out. our whole team came from fortress. we built the vehicle that started in 2013 and we raised capital to $7.2 billion in equity today. the goal is to become a world-class global equity manager. it is an important piece when we look at where we go on a forward asis. sonali: sculptor -- basis. sonali: sculptor has made an impact. there have been lawsuits, there's billionaires, bidding wars. why did you want this badly? michael: it is an attractive asset. and it has an excellent group of investment professionals. when you think about the asset management business, lp's investors give mon

sonali basak tells us what this means for the economy and which industries are most at risk. filing for bankruptcy at the fastest race -- rate since 2020. the record searches at the root of the issue. global companies have borrowed more than $500 billion of investment grade debt. the rate hike began in 2022. the vast majority of this was heaped onto u.s. balance sheets. despite the high borrowing costs , debt continues to grow. >> interest rates have increased. sonali: blue-chip names saw their borrowing costs rise by more than doubled to an average of 5.6%. junk rated companies were paying 8.7%. >> the problem is that this is a little bit by design. they want to slow down inflation. interest rates were cap higher for longer than a lot of people on wall street expected. sonali: this higher rate environment has created amount to him -- a mountain of distressed debt. this sort of debt has jumped around 400%. >> for consumer facing companies and those upstream supplying them, that will impact businesses and those can be difficult, particularly if they have a lot of space. the app

lisa: morgan stanley's incoming ceo in conversation with sonali basak and with the former ceo sittingnjoy it. in markets, a bid to the tape. a quiet morning as we reassess the geopolitics. yield moves, earnings, a lot going on in ahead of key economic data in the u.s. the regional banks, especially as we talk about the big banks and the successors to that -- so far year to date, the bk x -- kbw index is down 25%, close to the lows we saw during the crisis back in march. joining us now is chris merrimack. i know you have been bullish on the banking sector. i want get your take on what you make of the selloff that has persisted. >> i think there has been some continued struggles about the fears of credit quality getting worse in 2024. there has been passive outflows against the banks. i have heard folks shorting the kr x and k r e that go along with the nasdaq 100. to some extent, the banks are not sexy and not doing anything from a perspective that causes investors to dive in. most of the fund flows has been to other growth areas and other areas that are avoiding anything economically