>> welcome to "bloomberg markets ," i'm sonali basak. traders, reassessing outlooks as fed officials say they are in no rush to cut interest rates. let's look at where the markets stand right now. s&p 500 back in the green, broad-based movement upward. most major sectors are in the green, up 4/10 of 1%. the nasdaq 100 seeing a bit of a lift, shaking off jitters in semi conductors, the nasdaq 100 is nonetheless up 3/10 of 1%.

the two-year yield buying selloff is what we see today with a 497 on the two-year yield, up five basis points on the day. 10-year yield hanging out at 460 three. up five basis points. we will talk more about the bond selloff later in the show. on the equity side, las vegas sands exceeding forecasts, results at the macao locations missing consensus estimates. flagging renovations weighing on revenue and profitability. the stock at its lowest levels since early december. looking at chipmakers like we have been talking about, tfm c, first profit increase in a year, beating estimates about projections with shares under pressure after lowering the overall chip market outlook. dragging the philadelphia semiconductor lower on the day. micron, poised to get more than $6 million in grants from the chips act to help pay for

domestic factory projects, part of an effort to bring semi production back to american soil with micron down on the day. another stock we are watching is blackstone. shares of the world's biggest alternative asset manager, lower after missing estimates for inflows and assets. blackstone collected more fees from big retail funds and credit strategies during the quarter and earlier today ice oak with john gray about the results. >> what we tend to focus on is how we deliver over time and in this order we felt really good about the way that we started the year. we delivered for our clients, which is the most important thing, strong performance. also, in terms of our financial results, we felt really good. what i would say is exciting as a couple of positive trends. the capital markets have reopened. we are seeing a lot more transaction activity. equity markets are stronger. that markets. you see that in our reporting --

your reporting. we are seeing re-acceleration in private welfare, investors coming back to products, pleased with performance and improved market sentiment. the private credit area has incredible momentum. we crossed over $400 billion in terms of private credit, overall, real estate and corporate. $200 billion credited to insurance clients today, another area where people are embracing the blackstone model. it's hard to measure things moment to moment in the stock market, but we are pleased with where we sit. sonali: glad that you brought a private credit, your private credit business brought in more money than any other business. how does that momentum keep going into the year, can you keep it up? >> we feel really good about it. last seven months it's delivered

70% appreciation, a lot of happy clients in that area. you also have a secular shift going on in noninvestment grade and investment grade private credit with insurance companies looking to expand what they have done historically. they have done mortgages, historically, but now working with folks like us on things like single-family mortgages or residential, i would also say infrastructure lending. that could be digital, green energy, a range of activities, asset-backed finance. there is a broadening of how we serve these insurance clients and pension funds. as well as individual investors. i think that if you look back over time, think about 60:40 for investors, 60 equity, 40 fixed income, a large portion of that has moved to the private alternatives over the last 30

years. in the fixed income bucket, most of that has stayed liquid. we are in the early days of expansion in terms of alternatives in fixed income in a range of areas, giving us a lot of enthusiasm. sonali: on the private equity side, you still see realizations not meeting the mark. do you think that the markets will pick up drastically this year? or is it going to be a long time coming before we see deal assets at a more significant scale? jon: after two years of slow m&a, it's picking up as it did before and what you do is focus on deployment. there's a big pickup from the last couple of quarters in deployment and we think that will continue, there are attractive opportunities out there across a range of sectors. as you think about realizations

and getting companies ready to sell, doing ipo's, those sort of things take a bit of time. what you want to do is it in a deliberate fashion. we are not forced sellers of assets. i think that you will steadily see a pickup, but it will take time and be more towards the end of the year into 2000 25. investors are focused on maximizing returns and we think that is the right way to do it. be deliberate in terms of realizations with a recovery in capital markets being an important early sign as we move towards the realization cycle looking forward. 9 can you have -- sonali: can you have significant m and i give it that the expectation -- m&a given that the expectation cycle has changed with rate cuts this year? jon: interestingly, we have seen changes here, though there has been a tick up in long rates.

costs of capital has come down materially from the october highs. high yields at 100 basis points, commercial mortgage-backed security spreads, 125 basis points. not only has the costs of debt capital come down, but the availability has gone up materially. i think it is an important first step in what you are seeing a pickup in transaction activity. you are right, as the fed cuts rates, it will be easier for people to do transactions and you will see more of a pickup. even with rates at the elevated level, there will be more transaction activity given the reduction in costs capital. sonali: do you think that one rate cut is achievable or is that looking more unlikely? jon: i think it is achievable. we had inflation north of nine, now it's 3.5%. the pace of disinflation has

slowed, but the path is still downward. when we look at our large portfolio of 12,000 real estate assets, 200 30 companies, we are seeing input costs with manufacturing businesses pretty flat. we see hotel room rates that have in some cases turned modestly negative with apartment ret -- rent pretty flat. looking at wages a year ago in our companies, they have been growing 5%, now 4%. the fed will get some data that is positive, giving them some room. i think that they will be patient and deliberate with an expectation of fewer cuts and a delay, making sense. ultimately for investors what matters is rates will at some point come down and that's a positive. as investors, typically, with $200 billion in capital, we want to find ways to deploy things before the all clear sign, something that we have started

to do particularly in real estate at scale. sonali: the new york fed president john williams joins other fed officials and saying that he's in no rush to cut interest rates until the data warrants it. let's bring in jennifer lee. the firm just lowered their forecast for the number of cuts, seeing only two this year, starting in july. one thing that the market caught on to was not just the idea of waiting for the data to show progress, but the idea that even though it is not a base case, they would hike rates and meet higher rates if the data were telling them otherwise. how do you as an economist really guide investors to prepare for that eventuality? jennifer: first of all, hi there and thank you for having me on the show. this is a complicated time we are in right now. normally it's pretty basic to say yes, rate cuts are coming, but if that is still the case,

now i would never ever say never. if there is a trend in the data, if we start seeing stronger data with stronger inflation, who knows. there is a possibility that we could see rates going even higher. that's highly unlikely, but never say never. it's hard to divide it in any way. it's almost like trying to prepare for anything. at the same time, again, in the base case inflation is coming down. 9%, 3.9 percent now, we see it coming down and it's us going to be a little bit slower to get to that magic 2% level. sonali: what would drive the fed to finally be cutting, with economic data as strong as it is? jennifer: we have already had stronger months, so we would need more than that. we would need to see slower

economic activity. so far we haven't seen that. earlier this week it killed the retail sales, which was astoundingly strong. it's going to take a while, obviously. that's why the market is reacting the way that it's reacting with this course of fed speakers coming out, like williams and rush, coming out saying that they are not in a mad rush, not in a mad rush to cut anytime soon but still looking for another rate cut this year. again, it is going to be slower and fewer. that's what we have penciled into our ace case scenario. sonali: to quote austin goolsby, housing is the biggest stumbling block on the road to inflation. how sticky our housing costs now? is there anywhere else you are concerned? jennifer: a few of the fed officials have mentioned housing , the sticky side, with rents and prices, ongoing higher

prices in the existing home sales report. that is one area of stickiness. i am going to go back to talking about service inflation as sticky. as a u.s. consumer, you should never underestimate. going back to the retail sales report, it shows that consumers are still out there buying, if not goods, services, which is why we are seeing sticky service inflation. until there is a cooling of the job market, i think it is going to remain sticky for some time. it may not stay at these levels, we will see it coming down, but it will take a while to come down faster. hence the stickiness. it all comes down to the job market. sonali: you had the atlanta fed president speaking in florida, some of these headlines crossing the terminal now, still on a path to percent, it will just be slow and bumpy but importantly, he says, they won't be in a position to reduce rates until the end of the year and if you

have to wait until the end of the year it leaves you with perhaps one rate cut. what else starts to weaken in the economy until that point? jennifer: this is where the issue of rates staying too high for too long, that is what is eventually going to start bringing the economic momentum down at a faster pace. obviously, we are looking at a softish landing right now, but if rates are too high for too long, you will see slower iconic growth, prompting the fed to start cutting rates. but everything is data dependent. so much can happen between now and then. everyone was expecting a cooler march cpi report and everyone was wrong. we have to look at every piece of data, especially the ones that are service related in consumer spending and salaries, as long as we continue to see strong income growth, which is good news for consumers but bad news for the fed.

those are the kinds of indicators we are keeping. sonali: it's a fine line and we thank you for watching it, jennifer. coming up, in bloomberg story generating a lot of was today, weight loss drugs causing a ton of attention and women who are struggling with fertility issues instead now getting pregnant. we will talk about that, next. this is bloomberg. ♪

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-- get pregnant and now take glp-1 drugs like ozempic are getting pregnant and doctors are looking into whether he can fight infertility causes. we had a report on this and our reporter joins us not -- now. it was our number one red storm -- story on the terminal. -- number one read story on the terminal. madison: i was talking to an obesity doctor and he brought up the fact that several of his patients were surprisingly getting pregnant, women who had long struggled with infertility and given up on the having a baby, found themselves pregnant, surprising me. i tucked that into my back pocket at the time. over the last few months, i heard that more and more and it has taken off on social media. there are facebook groups with like 500 plus members of people

saying they got pregnant on ozempic. it's interesting, doctors are prescribing it or now not necessarily as fertility treatment, but to help women who have struggled with infertility because weight loss is known to help with some of that and it might be treating some of the underlying causes of infertility. it's really interesting. sonali: one of your key statements is might be. the idea that they are moving forward without the data. by our doctors comfortable doing that, prescribing this without knowing? madison: that is a big question and doctors are kind of split. some say that these drugs have been around for 20 years and diabetes and we have some data in diabetes, we feel comfortable enough extrapolating that data and prescribing it to women, obviously before they get pregnant. no one is saying that women who are pregnant should be taking these drugs, but there are other doctors who are -- there is such a history of safety issues with some other drugs in pregnancy and this is something that

should be vigorously studied and we need to do that right now, but it has been hard to -- one, supply shortages have been so bad, it's been hard for researchers to get these studies off the ground, they can't get the drugs themselves for their studies. sonali: how is this changing the narrative around ozempic and how it is used generally question mark madison: it just as -- used generally? madison: it adds to uses it could have. so many other disease areas, heart seized kidney disease, the central for these drugs only keeps going. as the excitement rose, we need to remember that it needs to be followed with studies and with safety reviews that need to happen in tandem before they can be prescribed this widely. it kind of adds another question mar and intriguek sonali: is there any concern among doctors

and patients with this story? madison: the drugs really haven't been tested widely and women trying to get pregnant. but they have been looked at in animal studies and in the animal studies, there were some concerns, like that some of the animals, their offspring had birth defects and there were more issues with miscarriage and things like that. again, the companies are setting up registries to track women who have gotten pregnant on the drugs and that is something the fda is working with them on. hopefully we will get more data soon, but right now it really is a question mark. sonali: madison miller, thank you for your time. still ahead, one well performing asset on the markets, a look at how often oldest beating stocks. the precious metal hits record after record and is on the rise again today. stay with us, this is bloomberg. ♪ i'm thinking... (speaking to self) about our honeymoon. what about africa?

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sonali: this is "bloomberg markets," gold is having a big year. the precious metal has largely shrugged off the timing of the fed pipit and risen to record after record on growing geopolitical risks as well as demand from central banks and china. jon erlichman joins me from toronto to discuss gold stocks and their recent history. outperformance has been staggering, but how often is that the case? jon: going back four decades, the stock market on average tends to perform better than gold, but it is an interesting point that the rally we have seen in bullion this year has been so significant that when you stretch out the short term for the s&p 500 versus the price of gold going back to 2021, you

are talking about outperformance for this shiny metal versus the stock market. looking back at the last four years of data in the s&p 500, you do find about one third of the time we have seen outperformance for gold. when we talk about outperformance, that can include years where you have positive gold prices, but it can also include the years where it just performs better than the s&p itself. that is still a relatively small percentage of overall performance leading towards better gold performance. we looked at the canadian market as well, everyone here closely watches it up here in canada, and it's a little more often that you see outperformance, but still only 40%. a lot of people are wondering if this momentum will continue when you have this story, which started -- to your earlier point

-- with an interest rate environment where we are pivoting towards lower rates, that's pushed out with gold continuing to climb the demand side what is interesting right now is there are a lot of places where you can point to central bank demand and china demand and heck, we even hear about people going to cosco and getting gold bars. there has been a momentum story in place, no doubt. sonali: how do you think about the investment story here? the data was gold performing better than stocks in a down market. is this just a safe haven when you think about risk overall? or is there a better way to think about this when you think about putting your dollars to work? jennifer: -- jon: it's a great question and you are seeing several hedge considerations broadening out the case for gold in the short-term. let's go through a couple of them.

we have constant geopolitical uncertainty and i suppose if people in the markets are looking for ways to hedge the risk, they may look to gold. certainly, in this environment, even though we are constantly talking about an eventual move towards rate cuts, inflation is lingering and that becomes another possible hedge. broadly speaking, we just had a federal budget here in canada, big deficit. the government spending around the world, it ends up being the hedges that people are considering. sonali: when deficits go up, you purchase gold in bitcoin. jon erlichman, we thank you so very much. coming up, we turn to bitcoin itself as a mac os -- macro economic issue in terms of the having. nick carter, with us next. this is bloomberg. ♪

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sonali: this is "bloomberg markets," i'm sonali basak. let's get a check on the markets, the s&p 500 is up on the day and you are looking a .4% rise in the index. the nasdaq 100, up .2%. a bond selloff quickening just a bit with the two-year yield five basis points higher, off the highs of the week. remember, we were flirting with a 5% level. let's see where the week leaves us. 10-year yield, 464 on the day. bitcoin, the cryptocurrency moving higher on the week after some new lows over the weekend. 5% lower in the last six days,

nearly. if you look at what we are leading up to hear, they have an event that every four years lowers the computing power that generates bitcoin and here is what recent guests on bloomberg had to say about it. >> every how we come up to one of these halvin he back to the fundamentals ofg events supply and demand. >> you are always weighing the growth narrative verse -- versus the long-term economics of the industry. >> bitcoin still has a lot of fast money in and out of it, though. there's more long-term holders or than ever. >> margins have been very large, last month was the largest for miners. >> it's strong and i think we have to set up for a very positive moving bitcoin over the next several months. sonali: let's bring in castle

island founding partner nic carter. you are seeing the market losing steam. how do you see the halving playing out and impacting prices? >> i guess i will be the contrarian voice on here, the halving has been a critical event, as it was last time, since its inception. theoretically speaking, and informational event everyone knows is coming cannot be an informational shock. what really matters is the demand side, not the supply side. it represents reduction of an annual basis 33 basis points, which is marginal at this point. i would say that the factors that really matter are aggregate liquidity conditions, etf flows, those things putting pressure on the price, catalysts like that, whereas the halving is something

that everyone understands and it shouldn't really be a factor in terms of price formation here. sonali: demand is a good thing to talk about here for a moment, you saw exuberance in the bitcoin etf, but what happens if that starts to taper off now that the initial rush is gone? nic: yeah, that is what we have seen and the flows have been pretty flat in the last couple of weeks. looking at the filings, we are not yet seeing major allocators allocating to the etf's. you haven't yet seen it incorporated into model portfolios. that is something i would look forward to in the next three months to six months. it appears based on those filings that it's retail investors piling in and that certainly lead to the rally from the 30,000 range to the 60, 70 thousand range. impressive. these have been the hottest etf launches of any asset class in history. but, you know, we have seen a

softening. the outflow from gbc and tin used to be a factor there. etf in hong kong is probably not as much of a factor with the fast follow against the mastic etf's because mainland chinese citizens will not the able to likely buy that. the etf now is less positive for bitcoin. sonali: how do you think about the volatility around large geopolitical events? i think it was a big shocker over the weekend when you saw the iranian strike against israel, you saw bitcoin drop to the lowest levels we've seen this month, below 60,000 for a while, there. what does that mean to you? nic: yeah, i think the market overreacted a bit there, but warfare is generally not good for risk assets. hopefully it doesn't go further. the only asset that does well in times of war is oil and bitcoin is still the tip of the spear for liquidity conditions and we

have seen a significant tightening with the move in the 10 year, recently. not direly surprising that bitcoin sold off there, but i think it was overdone and more indicative of a buildup of leverage in the market and we have now seen that flush. so, it is kind of a healthier position now. sonali: where does bitcoin and the year now? nic: sub flow is the major driver and fundamentally, liquidity conditions, we will see what happens on the long end of the curve and what happens if we get more of these cpi print that are super elevated. for the most part, i would say basically it depends on the fed and whether we are in a higher for longer situation and whether we continue to see commodities rallying like we are seeing now. those seem to be the factors primarily driving it. the other thing to keep an eye on would be new protocols being

launched on bitcoin, like r unes, which could make bitcoin the setter -- center of the meta in the space. that would be one thing to watch, sort of fundamental crypto thing. but largely i would say the factors that matters here are the exogenous factors. sonali: could talk about coins forever but i want to pivot to another big story today, looking at the long sought after crypto license in dubai. speaking earlier on that permit, there was a lack of clarity about where the ultimate headquarters would be. let's take a quick listen in. >> we are looking closely at bringing about a vibrant ecosystem in dubai. you know, crypto is a 24/7 market. we are traditional markets are

closed, you can still do investment strategies like you see on the markets and in the weekends. we are very excited for that market. sonali: when you think about how much crypto trading has moved offshore outside the united states, how do you think about that changing the dynamics as bytedance builds dynamics abroad? nic: dubai is highly liquid, literally and figuratively right now with the floods. baidu is a juggernaut, you can't count it out, it's 50% of global trading. people figured that bytedance would go away after the settlement, but that hasn't happened. they have a presence in dozens and dozens of countries worldwide and as the u.s. continue to be hostile to crypto , that hasn't changed. the most vibrant attractive crypto firms are looking at her and jurisdictions and we are seeing a number of them opening

their arm. this is just a part of the regulatory arms race, where we are seeing more progressive regulators accepting and realizing that ripped out is here to stay and embracing these large firms and reaping the benefit. that is why the biggest conference of the year is in dubai and singapore, not the u.s. it's a very sad state of affairs for u.s.-based firms and individuals, but it is an unfortunate consequence. sonali: one place in congress that you might see a difference is stablecoins. do you still have doubts that there will be a constructive move there? nic: i don't think the new draft will be passed but i do think that stablecoin is the number one priority for the congress after the election. it's essential that the u.s. regulates stablecoins and brings them under the regulation. stablecoins are good for the u.s. dollar. we heard the fed governors say

this recently. we have heard members on both sides of the aisle understand and publicly speak out, saying stablecoins are good for the dollar. they are the new euro-dollar and is just a matter of time within the regulatory apparatus that it becomes essential as they promote dollar usage and globalization at a time when that is more important than ever when we see deglobalization of the dollar. sonali: nic, thank you so much for your time with your contrarian views. that was castle island partner nic carter. netflix, reporting earnings with netflix setting a high bar for added subscribers. it is our stock of the hour and it is up next. this is bloomberg. ♪

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sonali: this is "bloomberg markets," and it is time now for the stock of the hour. netflix reporting first-quarter results after the market closes today with analysts expected to generate another strong quarter of growth in subscribers upwards of 5 million. the stock has been on a tear recently adding roughly $110 billion in market value alone.

let's discuss it with mark douglas. how do you feel about the pace of subscriber growth? do you think it is sustainable? mark: no, i think it is coming primarily from the path -- crackdown on password sharing. i think that netflix can definitely increase subscribers, but it is not going to be at this rate. they will have to start to look at other ways to drive revenue. sonali: what are they that will be the biggest payouts for the company and will they command the same kinds of premiums netflix has been commanding? mark: the obvious other places advertising. in terms of business, they are at critical mass. every dollar seems to flow directly to the bottom line. if you look at new subscribers, that's doing that. the ad business, they barely scratched the surface of what's

potentially possible they are and kind of a year from now, this time next year is when everyone is going to want to talk about it. sonali: let's talk more about subscribers for a moment. there have been a lot of changes in the way they interact with their own consumers, particularly when it comes to price. how do you feel about the net impact of price increases? mark: it isn't smart for them to increase price right now. the thing about the password sharing, it was like this huge backlog that they knew that they had. they pulled it out to use to grow the business at the right time. so, pushing price increases right now, it should be going slightly in the other direction. price increases internationally? maybe a bit of an opportunity, but it is kind of a drug. even a one dollar increase in price multiple light by 300 million people produces over one billion annually in pure profit.

but you have got to resist it. you have got to let it grow organically. sonali: given your kind of general negativity about subscriber growth and the idea of the price increase here, how do you feel about the price of netflix stock? do you think that the run-up is justified? how would you advise clients to be positioning at this point? sonali: i bought -- mark: i bought netflix two years ago and tripled my estimate, talked about it, always been a big fan of netflix, but it's been a race for them. you know, they have the password sharing at an appropriate time, passing the growth to another part of their business. international and advertising are, you know, the two areas. the advertising is easier to do, it just takes a lot of effort. the international is produce the right shows and they are incredibly good at that.

i think they can rope both of those, but for an investor they can drop the baton and hold on, they will pick it back up and keep running. sonali: what about newer initiatives like live sports? when does that start to pay off? sonali: wwe he was brilliant. there's no way -- the average person, there's no way they were going to go and watch wwe, now it will be like the moment you start up your tv, it's just right there. i think like finding kind of smart sports opportunities like that instead of just being massive sums of money for kind of nfl, things like that, is a smart move. they have kind of done that with f1, with documentaries. they are good at it and do it in a precise way that explodes viewership. sonali: is the idea moving forward about spending money on content or do you want to see the deal? sonali: m&a in the

media industry is guaranteed at this point. if you can't name the brand and i tell you immediately wide to go watch it, the brand doesn't exist. why do i go to cvs first? espn, i know it's sports. there's going to be a lot of consolidation. whether netflix participates in that is a big gas. not something they've done in the past that i would be shocked if they started to do it now. sonali: thank you for your time in a balanced view and a stock that has seen a significant run-up. coming up next, a blackstone coo who says they are hiring. more from a conversation with john gray, next. this is bloomberg. ♪

sonali: earlier today we heard from jon gray, blackstone president and coo on earnings and rates and this is what he had to say about hiring at blackstone. jon: we will hire more people than we did a year ago. given what's happening in our credit businesses, our secondaries business, i think we are going to grow. probably not as fast as he did act in 2021, but we think we are in a secular growth industry, we are the leader in that industry, we continue to get good inflows from the first quarter. this will require more people in the key is to continue to deliver performance. if we do that, we will grow and need to hire more folks here at 345 park avenue and around the globe.

sonali: for more, we know that they are not hiring everywhere across wall street, so his comments struck me as a bit contrary -- contrarian. >> when he talked about credit, that was for a reason. when you look at the performance return funds on infrastructure and private credit, the best performing areas this quarter, the past 12 months. that's a place they have done really well. there read it unit as the maximum inflow in the past. another area where blackstone has been doing really well, everyone in that industry, in the investing business, have been focused on the institutional client for so long. blackstone was the leader in pivoting to the retail channel. by retail channel we mean the affluent customer channel. they had eight billion in that

channel. sonali: what is still waiting to catch up? you hear about private equity but the reality of dealmakers is you don't get paid until deals are done. you sell assets. we had another story on the terminal about leveraged loan markets needing to meet their next test with a higher for longer environment. you need leveraged loans to get deals done in a lot of ways. his private equity going to come back fast here? >> that's a good question and maybe one area that folks are not focusing is the private equity exits. jon gray touched on that in his interview with you, talking about the fact that they can afford to be deliberate and patient. debt and equity markets are back but they are about maximizing returns and he is talking about a pickup that could go to the end of 2024, 2025, making a lot

of investment bankers very fidgety. they would like to see a ramp-up in dealmaking activity now and the private equity industry is a big anchor for that activity to happen quickly. sonali: another thing that struck me coming out of this week, goldman saying that it would take five years to get $300 billion in equity assets. blackstone surpassing that today. what does it say about the movement on wall street? >> it has been one-way traffic and when you think about firms like blackstone and others, yes the stock is down and so far it has been trading like apollo and others. but when you zoom out, go back five years, the stock has tripled. include the dividends, investment returns of 300%. this has been the place to be over the last five years. sonali: i don't want to pretend that the -- that all is well and everyone is hiring like crazy. you have another story out today

about howard cutting more than 100 staff in a restructuring push. what's going on there? >> this is a firm, a place, a situation that we have been tracking closely and carefully. they have had some challenges. they had some cuts because the inflection fund wasn't talk to the greatest start this year. remember, the last five years, assets shot up sixfold to $35 billion. when you have a moment to take a pause, then you think about cuts. it could be a lot of back office with risktakers can cut. brevan howard has been the roller coaster. they managed $40 billion in assets, dipping to $6 billion, now back up. it has seen rapid growth. not yet glory days, but you can perhaps understand why they need to measure what their growth rate has been and if they can keep up with it. sonali: and of course, everyone still struggling with costs.

thank you so much. before we let you go, let's check on the markets. green on the screen, a selloff in the bond market, we are looking at the two-year yield passed 498 on the day, up more than five basis points, the selloff quickening in the last hour and looking at the 10-year yield. up more than five basis points on the day, edging closer to six. the s&p, letting go of some of its gains, up now only about .08 percent and you are looking at the nasdaq 100 slipping into red tort -- red territory now. i'm sonali basak. that does it for "bloomberg markets." it's a busy day ahead. stick around. this is bloomberg. ♪

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>> this is "balance of power."