>> welcome to "bloomberg markets ." s&p 500 falling below 5000 as the fed resets his first interest rate cut. get a check on the markets because he have the s&p below 5000. also pressure on the nasdaq 100, down almost 1.9%. two-year yield, a little bit earlier in the day but now a little bit earlier in the day. yields moving a bit higher. same for the ten-year yields. we will look across assets quickly because you have seen oil on the rise in the middle of

tensions brewing in the middle east. crude well below the highs of the week at about $83 on the day. up about a quarter of a percent. gold spot below the highs we saw at $2400 an ounce last week. still on the rise for multiple days. bitcoin on the right as we await to see what goes for the cryptocurrency. paramount shares are making big moves as apollo and sony are said to be considering it joint offer for the media company. bloomberg intelligence says this move to submit an all-cash offer will likely assuage financing concerns. procter & gamble reportedly quarterly sales fell short of analyst estimates, overshadowing and improved profit outlook. the company is on track to boost its prices for the sixth consecutive year. png down half of 1%. netflix, blockbuster earnings report with subscriber doubling

expectations. it will stop reporting subscriber data and offering weak second-quarter guidance. netflix down nearly 9%. let's talk about what's happening in congress. while the house advanced a long stalled 95 billion dollars aid package for ukraine, israel, anti-one, includes a provision to ban or divest tiktok within nine months. tyler kendall joints now with the details. this is a procedural vote and this will go through the weekend. what can we expect us to mark tyler: this was a procedural book but it's important. it sets up congress to pave the way for a finalized vote over the weekend on this critical security assistance they have been trying to pass for months. i'm $95 billion package to include a for ukraine, israel and taiwan. as we have been following it bloomberg, a provision would force tiktok to divest from its chinese-based parent company or

face a potential ban. we are expecting lawmakers to work over the weekend on this. if we learned anything from this vote today, we expect this to pass overwhelmingly and on a bipartisan basis. more democrats voted for this bill today. the house has razor thin margins for the republican majority. mike johnson really needed democrats to get on board with this aid plan and support it but come to his defense if he potentially faces and ouster. he's getting some really strong pushback from some conservative members of the party, notably marjorie taylor greene who is threatening to put forward a motion to vacate and oust speaker johnson. we have seen democrats come to his defense, saying he put forward the eight and they would support him if it comes to that. we are expecting this finalized vote likely tomorrow. the senate will have to repackage this. i spent a long time on the hill this week talking to senators

about this moment and what would happen. i cut up with senator thom tillis, republican of north carolina. you know him from the banking committee. the senate will be ready when they get this. they don't care how the house passes it as long as they pass it so they could get it to president biden's desk. sonali: a lot happening over the weekend. thank you for your very deep reporting. she always knows what's going on on the ground. we will bring in ann berry, fred needle -- fred needle partner. how does the future of tiktok play out? the company has been lobbying against this move. ann: before tiktok disappears from devices. it shows something is going to happen. loving continue -- lobbying will continue. pressure is being applied by china with trying to push apple to withdraw whatsapp as an offering on iphones.

it will take a long time to play out. i think tiktok it's sold minus the algorithm that has the security mines. it is not going to happen overnight. sonali: we have talked a little about the impact ultimately for the other social media giants in the united states, particularly meta. how do you think over time executives will address the opportunity here to step in with the uncertainty around the other large rivals here? ann: instagram reels really is the play that stands to gain the most from tiktok either being banned or sold. if you look at the outlook for meta's earnings, reels is a larger part of the revenue stream. morgan stanley anticipating $28 billion, up 120% for reels' contribution to the revenue

stream. if tiktok goes away as the fastest-growing short form video platform, ree;s stands to gain -- reels stands to gain. they will have to relocate budgets. sonali: what is your favorite pick going into the earnings cycle? ann: i look at what's happening to netflix in the last one he for hours. what does that tell us about the appetite of the market or the messages they are looking for right now? netflix had unbelievable outperformance versus some of the core metrics but the share price is being punished because the outlook for the rest of the year implies a slowdown in growth and there will be a -- and that will be a key metric. the market will get confidence from clarity, transparency. continuing to see reinforcement at the back end of the year growth guidance, something that netflix is weak on. amazon is well-positioned.

certainly levers to pull from the cloud. everyday essentials doing pretty well for a pressured consumer. they continue to move on the video site into sports. andrew jesse has all guns blazing with many different ways to grow. sonali: when you look at some of the tech giants is the risk more to the downside at this point given the valuations we have seen in the last six months? ann: the rest of the downside is in the flatter part of your question -- latter part of your question. for big tech it has been strong if you look at the last couple of quarters, especially on the cost-cutting side. what i fear is priced into the valuations we see at the moment are expectations around generative ai delivery measurable monetized contributions to the bottom line. i don't think a lot of the big tech can point to hard numbers justifying the ai euphoria we

have seen in the last 45 months. that is my concern, not the earnings trajectory but the expectations being set far too high relative to where trading and deliverables can be right now. sonali: because you like the ai sector and you said so much about amazon, is there anything you like where valuations have run? ann: alphabet has its work cut out for it. it needs to show progress on generative ai, really pushing in and delivering. understanding how they can follow the footsteps of microsoft that has been pretty savvy and expressive it all they will price their ai offering to their consumers. another piece buried in this a little bit and where i would be looking for this in the earnings calls, not necessarily the headlines our players are trying to move and partner with the likes of disney and others to try to figure out a way to move more aggressively into using ai

for the advertising technology. something touched on by netflix. that is what we will hear get louder and louder with the likes of amazon talking about the platform inside its content business. sonali: we are looking at the lowest levels for the nasdaq 100 since january. hitting session lows as we speak. ann berry, thank you for your time. threadneedle partner from seattle. we will talk about american express. revenue jumped as consumer spending stay strong, but the company still sees cracks in small businesses. this is bloomberg. ♪ ♪

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sonali: it is time for the stock of the hour. american express topped estimates in the first quarter. revenue jumped 11% and expects full-year revenue declined 11% as well compared to 2023. the ceo told bloomberg, "the softness in the business is small businesses due to the organic decline." we will discuss what's going on with katherine doherty. one thing the market is shrugging off his provisioning for bad loans. the idea that $1.3 billion to cover loans. last year the market freaked out when they put those revisions up. why does it not matter now? katherine: it seems like the market is digesting in a different way. analysts were expecting $1.1 billion.

the $1.3 billion is slightly higher. if you look at with the company's action making, what they are generating and comments like the softness, they are not seeing that as it relates to the demand for premium cards. i think all of that is seen as a bright forward-looking commentary that is really helping the market digest this in a positive way. katherine: -- sonali: if we are seeing the card growth from the wealthier consumer where exactly are they seeing the biggest areas of growth? rodney: they talked about spending on airline travel being up. what was interesting is that was boosted from bookings in the front end of the claims. -- the planes. it is coming from the higher end significant spenders looking for perks. they are looking for travel and other luxury items they can spend on. it seems as if the strength is still there and will continue.

when you think about the weaknesses as you had alluded to in the beginning, the ceo is saying the weaknesses are at the lower end spenders. it seems as if these premium products are catering to the higher end spenders. sonali: leverage is alive and well as long as you're flying first class. katherine doherty. earlier this week we learned u.s. retail sales remain strong. we will discuss the consumer with rodney williams, cofounder of solo funds focused on timidity banking and lending solutions. he says the fact is more americans than ever before are living paycheck to paycheck with limited savings. rodney williams joins us now. what you think is happening here? if the data shows so much strength but we know anecdotally 70 people feel stretched -- so many people feel stretched, how do you actually was going on? rodney: it's related to the employment rate. it's and a good place but

you have to talk about surging gas prices, skyhigh mortgages, rent at an all-time high. it rose 6.5% in the last 12 months when you look at the previous december. inflation is real. to the average american things like food, fast food is significantly more expensive than it has been in the past. this is causing constraints you would not imagine where people are living really slim despite having solvent employment. sonali: one dynamic i've been wondering about is if you look at the data coming out of the largest banks you see at your attire in fica scores. the idea they are catering to the consumers with fortress balance sheet. if you look outside of those with a credit score outside of 750, and that's lower than bank of america's average on

business lines, how much do you see them having to put ordinary goods, groceries, gas on the credit card bills at a time when aprs are skyhigh? rodney: not only are apr's skyhigh, balances are at an all-time high. you are right. the average consumer is putting more everyday expenses on their credit. that includes planned expenses and unplanned expenses. those things still happen everyday. that means a medical emergency. that means a flat tire. what we see is there is more consumers today that are overleveraged than ever before. you think about a product like what we offer, a community-based loan for a few hundred dollars, we see more users that make over $100,000 a year and have a healthy fica that we have ever seen in our history.

i think the number one challenge is expenses are higher. the number two challenge is getting a flexible loan to manage the rising costs is also extreme the difficult. sonali: how do you think about the crunch consumers are being put under as they take on more debt? will it create a vicious cycle of sorts? rodney: yeah. i have a big problem with the concept. think about the fight go and credit -- fica and credit. thank a credit card over time is what is taught. installment loans are what we have communicated as a benefit. it actually creates the current problem. you see stable or increasing scores but consumers being overleveraged. they have too much credit. there balances are too high. this creates a scenario they are living in a really sensitive place. in 2023, we ran the cash report.

consumers are cash poor but credit rich. that is the same problem, almost an evolved problem we are seeing today where more expenses, more expensive than ever before are being managed by credit facilities and credit products that are paying overtime and incurring attorney fees which continued to create this cycle. we think it is a big problem. sonali: what is not reflected in the data you see from the federal reserve and the banks? the reality of the buy now pay later revolution is not reflected in fica scores or in credit card balances. our consumers more levered than meets the eye? rodney: they are definitely more levered. these products only exist because consumers need them. they are demanding them. it is not like the traditional players trying to introduce these products. it is not like traditional banks

were trying to think of innovative solutions that were meeting the needs of these consumers. the fintechs have been doing it. my company has. what is the problem in the message is i truly believe regulators and politicians need to figure out how to work alongside technology and innovation to start to bring better product or support the products. they actually need more support for the buy now pay later, earn wage access and community-based finance solutions of today. when you think about their penetration compared to the traditional penetration, let's just say 80% of our users are overleveraged using a subprime credit card or some credit card facility. traditional players are still by far the number one players to everyday americans. sonali: rodney williams, thank

you for shining a light on the bigger picture here. let's check markets. we are watching markets on the decline here. s&p 500, six days of losses is the longest losing streak since october of 2022. the losses today to tell you the whole picture. the nasdaq now obsession lows but down on the day. vix has been on the rise, trading at more than 18 handle brings you at a vix above the levels you are seeing futures may trade in. ten-year yield hanging around 4.61%. stick with us. morehead. -- more ahead. this is bloomberg. ♪

♪ ♪ relax into a caribbean state of mind. visit sandals.com or call 1-800 sandals. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai. sonali: time for the wall street beat. paramount shares are popping is

apollo and sony are considering a joint offer. paramount is currently in an exquisite negotiating period with skydance, and it's mostly up to the redstone family that owns less than 10% of paramount but controls 77% of the voting stock. let's discuss this with chris palmeri of bloomberg news. let's talk about the offer to begin with here. how much does that give the apollo team? chris: it definitely gives them a lot more credibility, not that apollo lacks in that but it's interesting to watch apollo. we broke the news they were interested back in january. then things got cold for a while. we heard they were not moving forward. things escalated with david ellison and paramount. then apollo made an offer just for the film studio, which was something the redstones did not want to do, break up the company. i have been told they did not feel there was enough -- it was a solid offer when apollo made

an offer for the whole company for $26 billion, including debt. they have been this -- in this exclusive period with david ellison. adding the sony element creates a more credible alternative and investors are not happy with the terms they are hearing from the ellison offer. sonali: how much does it really give apollo credibility in terms of financing versus operational expertise? if the redstone family has 77% of the voting power here, how much do they need to sway the vote here? how can they even when frankly? -- win frankly? chris: we had a story that looks at this process. securities law has been moving more in this direction. even if you're a nonvoting shareholder, which paramount has a lot of, they say those folks should get a voice in a big transaction like is being talked about. there is nothing in paramount's

bylaws or the law exclusively say they redstones can't just continue to exercise their power as the controlling shareholders. they are not required to give everyone about. if you watch the way the stock has traded, the voting shares have gone up since all these merger talks have happened because the redstones would get bought out. the b shares have gone down for the most part until the big bump today because investors are concerned a deal with the ellisons is going to dilute them. sonali: chris palmeri, we have to leave it there. i wish we could keep going. i'm curious to know it david ellison is up to right now. a quick check on the markets. we have seen a selloff underway today. we are only done about .6% on the s&p 500. more on that on the nasdaq 100. the longest losing streak since october of 2022. yields have been on the rise all week.

stick with us. that does it for "bloomberg markets" today. this is bloomberg. ♪

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>> from the world of politics to the world of business, this is "balance of power." ♪ live frosh