sonali: i'm sonali basak and this is bloomberg real yield. it's time for the final spread for the week ahead. coming up we have thursday the december u.s. cpi report. investors watch to see if data validates rate cut expectations for yet another indication of how the u.s. labor market, initial jobless claims and friday, ppi data. stick with us. a lot of big bank earnings next week. this time, same place, real yield. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. amber: i'm amber kanwar. welcome to bloomberg markets. 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.

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 am jon erlichman with sonali basak. li: jp morgan says they are hiring at the bank sees opportunities in everything from dealmaking to u.s. wealth management the international retail banking. president and coo daniel pinto sat down at bloomberg house in davos with francine lacqua at the world economic forum. take a listen. >> i think that we are focused in whatever is our core investment areas, some of the was that i mentioned. at the moment we are employing at the end of this year, around 320,000 people. the number of people the employee has been growing. i think where we see opportunities, we can have our clients, for sure we will focus on that. >> so, hiring this year? >> yes. >> good bonuses is what we are expecting, right? is this your going to be good for your bank? >> i hope so. you never know. by the components are therefore a strong year. -- we know what the components are for a strong year. we see increasing well investment banking. that is our view for the last couple of years. markets will do well. we see mor

i am sonali basak. let's get a quick check on the markets.he s&p higher but fluctuating between gains and losses. on the week, you are looking at real moves in yields. the s&p is barreling past the highs last week. record highs we were talking about. the two-year yield fluctuating on the day. about one basis point lower on the day. we have oil again taking moves higher. we are also talking through some moves midday, midday movers. the trading giant suspended the cfo and cut the earnings outlook. we are looking at gilead today. it is a key failure in acute trial for a cancer drug -- a key trial for a cancer drug. not a lot of moves on the airlines reporting after the bell. j.p. morgan and morgan stanley recommending investor start buying five-year u.s. notes after they saw the worst rout since may of last week. abigail doolittle is here to explain. esg there was a big -- abigail: there was a big selloff or bonds. we had the first record high for the s&p 500 in two years. it took a backseat to stocks. here are the losses for bonds last week. th

i am jon erlichman with sonali basak.ve been watching wall street stocks and for our stock of the hour segment, we are keeping an eye on the big names. goldman sachs came out with its earnings and the equities-trading unit was a huge standout with performance triple what analysts were expecting. we have seen shares up on the day close to 0.5%. morgan stanley by comparison stock is moving in the other direction, concerned about what is happening on the business going forward on the wealth management business. there were some charges that investors had to consider. christopher kotowski is a long time bank watcher with oppenheimer and joins us with reactions. great to have you with us. what do you think of a reaction to goldman being up and morgan stanley being down? chris: honestly when i got the press releases -- you get the press releases within the company of minutes of each other in the morning and you go through them, i thought morgan stanley was a little bit light and goldman was a little bit better than expected. but

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

>> from new york city, i am sonali basak. "bloomberg real yield" starts right now. ♪ coming up, markets dialed back. fed cut expectation, making marge a tossup. big-time investors are starting to make calls on a steeper yield curve. and long-term yields are still on the rise. we begin with the big issue, rate, optimism is fading. >> the market may be a little bit ahead of itself. >> the market is being a little exuberant. >> the market pricing in excessive interest rate cuts in the u.s. >> the market is calling for a 170 basis point cut by the fed. really? no way. >> six rate cuts is a pipe dream. >> our team has four cuts, four cuts in 24, 25. >> they are going to start lowering at some point. >> i have no doubt we will get to rate cuts at some point. >> they will have to start cutting because they have the room to cut. >> they will be prudent, thoughtful. >> if they get it wrong, they will get it wrong by staying longer and higher. sonali: i want to bring into a function on the terminal that i've been using a lot lately and

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 basak.r big banks, four different stories. what are you looking for? sonali: can you imagine that capital one bustier was up 42% and bank of america up only 2%? tom: white? -- why? sonali: people are borrowing on their credit cards. tom: morning and has to, today. to he have to address concerns over -- not concerns or fears but a study of bank of america's liquidity and solvency position? brooke: -- sonali: he does not because bank of america has taken care of that problem over the last decade. you could argue that investors want bank of america to take on more risk. they have piled their balance sheet into bonds when yields were next to nothing. they have them in tied up, the balance sheet history to rolloff and you are seeing maturity losses start to shrink as well as rates rise -- rates come down, rather. they want them to put that money to work. their average fungal score is higher than these riskier borrowers. does that mean they want them to let harder? i think this is a balance questi

ed: valsoft ceo, sam youssef, sonali basak, thanks.ing news crossing the terminal moments ago. within google deep mind, some of their key scientists are in talks to leave and start a new ai startup. bloomberg also reporting those scientists are looking at fundraising. let's bring in mark berger, who is out in london. you let some of the reporting on this. what do we know? mark: not a great deal but we know the names involved are two long-term scientists in deep mind come along considered the most leading ai research lab in the world, based in paris where there is a lot of activity around french ai. we saw the mistral competitor that came out, now worth $2 billion. we have heard initial funding round, talks with investors at 200 million euros, which is a huge amount even for generative ai. but these are researchers, two of them at least, that have had multiple experience. one of them was involved with the alpha go papers, where deep mind bill that act already -- algorithm, the first to master the game go. seminal work in the field. ed:

i'm sonali basak with m ¦.as we talk about jobs today i wanted to highlight the number 86%, the number of k-12 public schools in the united states. when it comes to hiring teachers for the 202320 24 school year. 45% respondents believed their schools were understaffed. earlier today bloomberg's wall street week david westin sat down with education secretary mcgill cardona to talk about concerns on campus over antisemitism and the biden administration student debt relief agenda. take a listen. secretary cardona: it's the primary responsibility to make sure students are safe and can be themselves on campus. i have spoken to students over the last couple months that felt harassed. this is a starting baseline to make sure students feel safe on campus. we also have to make sure we are providing better access to higher education. when i became secretary of education the president open, look, we have to fix it. we need higher education to be accessible and affordable to be accessible and affordable tomorrow. we are ve

joining us now is the woman who did the interview, sonali basak. 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 soft

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

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

we will look at the sec's vote on etf's joining us is sonali basak. ended their initial filing. what is happening? simone: we have more details -- sonali: we have more details from the issuers themselves on the way of these funds working. what is interesting is you have grayscale, looking to convert their bitcoin trust into the etf format, they are at 1.5%, lower than they currently have a much higher than the cathie wood fu nd, waiting until a certain amount of time or a certain amount of assets. our own bloomberg intelligence analysts have become kind of famous for their coverage here of this whole saga. the deadline has come, the 10th of january. there is something else i will say about this that has been getting a lot of discussion, because as you, not surprisingly, i have spent all weekend talking bitcoin. a runoff in bitcoin prices up until this point. it is the fact of the matter of etf's themselves, holding underlying bitcoin custodian, as they come to market here, but then there is also an event that happens this year, the bitcoin having, wher

ed: cinelli basket -- sonali basak with the breaking news.ing up, silicon valley is feeling pressure to cut costs as google and amazon lay off of workers to start the year. details next. this is "bloomberg technology." ♪ 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 ed: ok. first up, an advisor to the european union court of justice says google should not win their appeal against the $2.6 billion antitrust fine. eu competition regulators slapped google with the fine in 2017 for favoring its own shopping service over those of its rivals. staying with eu regulation, concerns over amazon's $1.4 billion deal to buy the remote maker are coming to light after the tech giant missed a wednesday deadline to file remedies to antitrust enforcers. the competition commission has set a paris deadline to decide whether to ap

thank you so much, sonali basak. today, nothing is happening in the markets, nothing.to find things to populate the board. stoxx 600 done by .2%. brent is absolutely unchanged. a few single stocks floating around that are worth talking about, but this is emblematic of the fact that the market doesn't know what to do with 2024 thus far. goldilocks feels like last year. plenty more coming up even zeynep ozturk-unlu from deutsche bank will be joining us. this is bloomberg. ♪ avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, ahhhhhh i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surge

sonali basak is here without. re 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 guy

. ♪ sonali: i'm sonali basak. this is bloomberg real yield. it's time for the auction block.here is a healthy appetite for issuance, record week for europe with sales topping 120 billion euros with more than 50% coming from public sector offerings like the u.k. and spain seeing record demand. in the u.s. demand is just as strong. borrowers like mercedes, micron, and t-mobile are seeing robust order books with more than 70 borrowers tapping the high-grade market so far this year. in the u.s. high-yield after a slow start to the year with companies raising around $5 billion this week. hilton grand vacations giving the market r and r with $900 million of the sale. pg ims michael collins lays out his current playbook. michael: clips a coupon in fixed income, and you are still earning attractive yields. interest rates across all sectors of fixed income will be lower in a couple years from now than they are today. i think you clipped the coupon for now. it's rates back up by them. his credit spreads widen, by them. you have a fed backstop you have sonali: not had in a long time. so

first and alabaster, am -- for sonali basak, i am jon erlichman.s is bloomberg. ♪ sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. >> from studio two at boebert headquarters in new york, i am romaine bostick alongside scarlet fu, kicking you off to the closing bell on this wednesday afternoon and we start with a look back at the last fed meeting, ending on december 13. no decision on rates but a big decision on the dot plot. kailey leinz is in washington right now with a readout of the fomc minutes. kailey: chairman powell said at the press conference last month that rate cuts were discussed but the min

i am sonali basak. for every 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: 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

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

. ♪ >> 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:

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

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

we are joined by analysts -- allison williams and sonali basak as well. all the earnings presentations. is there a take away from all of them? a lot of them did seem idiosyncratic? sonali: there is a take away, and it is credit quality. you have different things to expect from each of these banks about how much they will lend in these environments. take citigroup. the ratio will be between 3.5 and 4%. j.p. morgan is guiding below 3.5%, so that gives you a basis of what they are expecting to lose. as they expect to maintain their competitiveness into this market. listen, guys, it is only less than a billion dollars here. their costs are rising at a greater margin. again, they are making money on loans, making money in this market and willing to take some losses off of it. guy: allison, what is your take away, the similarities and differences here? christa: the key thing we are seeing is expectations coming in solidly across the line. net interest on a core basis, operating expenses being on with the targets. as sonali mentioned, bank of america and city wi

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

james gorman joins bloomberg's sonali basak as he leaves his post as ceo.'m katie greifeld with guy johnson. alix steel is off today. welcome to bloomberg markets. i'm thrilled to be here. guy: great to have you here. we have a lot to talk about. a lot of data breaking right now. we're looking forward to the fed minutes later run. ism manufacturing, pay attention to this. the headline number comes in ahead of expectations and above last time. prices paid is soft, which is interesting. employment looks strong. jobs dip a little below expectations. katie, everyone is trying to figure out what will happen next. does this data really change the narrative? katie: luckily, i don't have to answer that question. there are a lot of numbers to sort through. sitting to my left we have bloomberg's mike mckee joining us to break down some of the numbers. what is the take away here? mike: your good luck with the u.s. economy. we have some good numbers that continue the narrative with the fed may be able to start cutting rates in the first half of the year. let's start wi

sonali basak will sit down with the chairman of morgan stanley.r? stoxx 600 is down by 0.2%, volume looks all right. volume has been all right in the real story is in the bond and currency market, down by 0.9% and the dollar seeing a little bit of a rise and brent crude is back to unchanged. we will talk about fx next. this is bloomberg. ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo. guy: tuesday, the second of january delivers a test of what we will get this year, bond market volatility, all over the place. oil market rising and falling. volatility the theme of the day. we will talk abou

from new york, i am sonali basak in new york. welcome to "bloomberg markets."he big banks, big disappointment dragging down a lot of the financial sector today. guy: yes, goldman sachs having a relatively good day. looking at the kbw, it is up. morgan stanley is certainly not up. it looks like there has been a few misses and the market looks disappointed. sonali: there is reason to be. morgan stanley just told investors net interest income will probably be that for the quarter and have to look at the regionals, super regionals. pnc expected to be down on the year, and the question is, rates were as high as they have been for a long time. in interest income could come easy to everyone by j.p. morgan. how did the rest start to fair? guy: going to get a new environment? interesting what having a day off does to the psyche. the dollar well bid across and i am thinking maybe this is a market looking to reprice the fed. while there will be speaking at 11:00 a.m. eastern. fascinated to hear what he says. are we going to get pushback from the idea that we will get six

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

was, of course, morgan stanley's executive chairman and former ceo james gorman, speaking with sonali basakty 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 the co