♪ 0 sonali: welcome to bloomberg markets. u.s. economic growth slowed and inflation process sending jitters across markets and once again pushing back the timing of the first rate cut expected out of the fed. let's get a check on the markets because there is a steep drop lower. the s&p 500 lower by more than 1%. the nasdaq is down about one .4% on the day in the dow jones industrial average down about 1.5% on the day in the vix marginally on the rise. let's look at yields and where they are headed.

traders are recalibrating their expectations and the two year yield is a touch under the 5% level once again. you are seeing massive volatility in the bond market in a week with a lot of auctions. the 10 year yield is it -- is a sex base at -- basis point -- is a six basis point move higher. gold is on the rise and has been a favorite asset for traders all year long, one half of 1% higher. some midday movers on the equity side we will start with caterpillar reporting quarterly sales lower than a year earlier and the trend is expected in the second quarter. they said sales would be largely in line for 2023 but that now seems to be shifting. the company beat expectations in almost every quarter since 2020 and we will talk more because in addition to that 7% drop in caterpillar, meta is dropping dramatically more than 12%.

the company announced it will spend billions more than analysts expected on its ai efforts. mark zuckerberg is asking investors for patients. they are not patient today and he says the futuristic technological advance will pay off. abigail doolittle has more. abigail: it's interesting to see that plunge, the worst day since october of 2022. some of it not only has to do with the fact that the guide was light and a bigger spend for ai but take a look at the shares of meta in this chart up white. at one point up more than 40% this year alone but over the last year into this quarter, up about 130% surprise to perfection. investors did not get that so you can see the plunge. below in yellow and green, microsoft and google. microsoft up about 5% and google up about 11%.

tesla is coming off of its bottom after a little bit of hope around the cheap ev. my point is meta's price to perfection, coming back to earth but what's ahead for microsoft and google because that result or meta, really weighing on both of these shares. microsoft is having its worst day since i believe october, 2022. more than a year depending so the key for microsoft will be where earnings and revenue come in. analysts are modeling mid teens growth which is pretty solid. the bigger deal could be azure will it come in at 28%? the ai copilot, what will that revenue spend look like. some analysts say it will be talked down in one analyst says for microsoft, it's about surviving and advancing. that may be the case for alphabet. google has an unusual circumstance relative to some of these other big tech companies. solid revenue growth over the last few quarters but into this

first quarter of 2024, down 5.3% and that's not expected to end. the june quarter is expected to be down about 3% so they will talk about that. will search hit the 11% but maybe pricing could have volumes offset and it's all about the cloud and ai. they could see some sequential revenue. a little bit of hope there because of the ai workload. sonali: we will now talk about a different part of the market, big move on wall street happening now. cantor fitzgerald has major backing for its upcoming futures exchange. investors from bank of america, barclays and citadel securities, citibank goldman sachs invested more than 170 million dollars for a stake in alphabet which will increase as they keep using the platform. we will bring in the cantor fitzgerald chairman on this.

you talked a little bit about this before, the idea of taking on cma and the futures business. that you take on the giant with the help of every major wall street bank? >> egc bgc group owns this exchange. we are the wholesaler of the world so we think when fidelity or pimco when they wake up, they want to buy something, they call a big bank. who to the banks call? what did they do so bgc group is the broker in between so we are the exchange for everything in the world that doesn't trade on exchange. everybody asked me if you are the exchange for everything that doesn't trade on exchange, why don't you become exchange? bgc set up fmx to build a futures exchange to compete with the incredible monopoly of the chicago mercantile exchange which is awesome. it's worth $80 billion and did

99% of futures in america last year. it seems like a monopoly to me. all these banks came in as our partner, 10 of the greatest trading firms, jp morgan, goldman sachs, citigroup, morgan stanley, wells fargo, barclays, i'm sure i will leave someone else come up bank of america, citadel the number one futures trader in the world, the number one treasury traders, these are all together, all coming behind this exchange to make this exchange so fun and so amazing. sonali: if cme has 99% of the volume here, how come these banks haven't supported you in this before? what is the outcome you're looking for? >> when you are alone like the cme, they serve -- they have a great product and they charge a great price like holy moly.

sort of like every christmas, they just raise their price. it's crescent -- it's christmas present, let three surprise. the banks want a competitor and they want innovation. we have the fastest system, the tightest spreads and we did this in u.s. treasuries so we started with the u.s. treasury. the cme when we announced we were going to be in the u.s. treasury market like an exchange, they had 85% market share. i call them the heavyweight champ. it was 15% by other players. we now have 28% and they are in the mid 60's so someone things we can't get a glove on the champ, they are wrong. the treasury business was one and now we will do treasury futures. you might say why shouldn't you win and that is well and the answer is i think we will. and we will do for futures which are like interest rate swaps and

that will be amazingly close behind. sonali: you talked about this business but are there other markets you would look to break into you are not currently in? >> we will start with the interest rate world. when you've got the world's greatest trading firms as your partner, they're going to say what's next. i would think other futures exchanges will be a classic move sonali: and bonds? >> it's a futures exchange, you can do anything. it's fun and we have the technology in place. the thing about bgc group is it already has the connection to those people. we don't have to build it today. we will open in september and we will start with the futures exchange, you just want everybody to connect. we get the first few to connect in the second year we will get everyone trading in the third year it's going to be full-blown

, full on competition for the $80 billion heavyweight champion. sonali: you had mentioned the christmas present of higher fees through exchanges. do you plan to lower trading costs? >> with the word for certain be helpful? yes, absolutely. the concept of being much more efficient, much faster and much cheaper will create more volume, will be innovation and we will do all sorts of things. if you want to trade a contract against another futures contract, it's built into the trading system so you can't miss. it's atomically built-in rather than two different systems trying to figure it out. you can just be innovative, clever, smart and faster and the banks are all behind us. the greatest traders in the world are behind us and the greatest technology that's already installed. if i don't see much, having fun, this is so much fun for us.

sonali: today is valued at $667 billion. you brought on the new backers and you've mentioned the three year timeline to expand the business of what is the company valued at in 3-5 years? >> when george clooney takes some tequilas and he bought a tequila company, how much was the to kill a company worth? he bought it for like $7 million and then he sold it for $700 million. these banks are buying george clooney. these men and women are so handsome. sonali: do you have a target how big you want to get? >> i think we want to gain market share. our u.s. treasury business which competes with the cme grows 1-2 point market share every single quarter. we were 26% of the end of the year would just put out this morning 28% this quarter so 2%

per quarter. i think we will keep growing and we will get to half and i think our futures exchange will just keep growing and eventually we will get to half and i think that eventually will become a normal sleep valuable for us, competition and it will drive down costs and drive up volumes. it will be great for america. sonali: it's interesting to hear you talk about growth because when you look across wall street, it's hard to find a lot of growth particular when it comes to headcount and expansion. what does this mean for all of your companies? will you be eight -- will you be able to bring more people on board? >> sure, when you are innovative, you can create things we are hiring tech people , bgc is growing. the stock -- bgc group was up 90% last year and it's on a tear again. imagine you have this exchange were all these banks want in at

a $667 million valuation. that was yesterday so what is it worth today with these partners? multiples higher. i'm sure private equity firms would love to invest at three or four times that much. we aren't sellers, we will build a great business. bgc is growing up a storm and so is cantor. i think there is lots of growth ahead. sonali: you are in the treasury business and we have the two year about to touch 5% once again. a lot of expectations are changing in this market. treasury auctions are coming in at a record clip almost across the curve. what kind of volatility does that create and where does the treasury market really go from here? >> there are two things that are incredible to think about. the fed's balance sheet is $7.5 trillion. that's got to come down. that means they will not by the

treasuries, they need someone else to buy them. that coupled with our beautiful government running deficits up to $1.8 trillion per year, you've got a huge supply coming. that's got to keep rates higher sonali: how high? >> i view it as steady. when i was here in january with you guys, i said rates would be steady and where have they been since then? steady. people were talking about six or seven cuts and i was like ha ha. who is cutting six or seven times? i think the fed will stay steady i think inflation is stubborn. you are seeing the 2-year note. the market is saying two years at 5%. what's the core market really saying? they are saying we are not going anywhere. when short-term rates are at 5.25% so if you said average

will be 5%, you are saying we are going to stick around and we are. the fed has the ability to cut a little. if they let go of their balance sheet, that's tightening. i'm not buying anymore but we will buy and that will take money out of the system. when the fed stops buying and cuts its balance sheet, that's a tightening so the fed can cut a little bit of interest rates -- sonali: when is the first cut? >> i think right before the election. not that the fed is involved in elections but... i'm thinking september and it's not really to move the economy. it's to show off a little bit. it's to help a little bit the guy who's employing you today maybe we'll give you your job again if he gets elected. i think september, one cut, that's it, just showing off. sonali: i'm curious on your

views on the election. you photo -- you hosted a fundraiser for donald trump earlier this month in palm beach. what would a potential trump presidency mean for the markets? >> last time if you remember, there was a lot of consternation when he was elected. my view was it will be good for business, it will be good for the banks and it was. the banks traded incredibly well. the republican party is a less regulatory party. you saw the federal trade commission came out and said non-competes are something they want to do away with. that's not really business friendly. an administration this more business friendly probably is good for stocks. you can say lately that joe biden is not good for stocks, the market is doing perfectly well.

it's not going to be as much as people think but i think a trump is less regulatory which businesses like, less like the federal trade commission saying non-competes and they get sued right away. it seems overbroad, less regulation is good for markets and good for business and i think businesses like that better. sonali: what do you think this means in terms of attitudes from the business community around donald trump? are there any changes you have seen particularly given that you have your ears to the ground? >> i think there is more coming. they were afraid in the beginning. when it was during the primaries they were nervous but you feel more and people coming over and people who would surprisingly never have said that before come up to me and said i'm thinking about it because they don't like immigration. immigration is -- who talks about it? these days everybody talks about it.

you have it in new york and san francisco everywhere. immigration matters and things like today with the federal trade commission, it's big regulatory push. i think business is moving more towards the republican side, surprisingly more toward the republican side than they were before. i think it will be a tough election. i think it will be a dead heat close. sonali: how does that translate to volatility to the markets through the year and next you're given the challenges you see around the world and given the challenges you are seeing in the u.s. economy? >> big volatility. that will be the end of september going into the election. the uncertainty -- investors tend to put their hands in their pockets when they don't know what's going on. when you have a good confidence of where you are going, you go with investing. volumes will decline a bit and

volatility will rise because people won't know which way they are coming or going. just a crazy time because people won't know what the heck is going on and the election, what's amazing about elections in america, once it's settled, market scope right back to normal. once it's settled come i think you will have a much better market than october. sonali: another volatile asset is bitcoin. you been vocal in your constructive you about it going particularly as its use around the world. you did say it would rebound this your view didn't say the etf would bring it there. would you be at a buyer of bitcoin at these levels? >> bitcoin just have to which means the work you do to get a bitcoin, the price is twice as high. that is theoretically a benefit for the next four years for bitcoin. over time, bitcoin will rally even from here over the next

four years. four years from today, i think the market will be higher and i think these things -- it has a place in the world area it's not going away so i think that's the way to think about it. sonali: you spoke about your optimism around tether. the s&p analysts have said the latest u.s. stablecoin bill, if it passes, u.s. companies wouldn't be able to hold or transact in tether because it's run by a non-us entity. how do you prepare for something like that? >> stablecoin in general, there is tether and there is circle. americans should have nothing to do with these things. i have dollars in my pocket and my bank account and the credit card in dollars and i can venmo you or paypal or zelle. for americans, we have no business being near stablecoin. argentina, turkey, venezuela, if

our money, if our bank account, we woke up with the turkish lira which is down 65% last year, we would be doomed. you want to hold the digital dollar. that's where tether really flourishes. it's in the emerging markets so the concept of trading stablecoins america, i just don't get it. i don't think it has anything to do with america. what we care about as americans is that the dollar is all-powerful for the world. sonali: do you worry there could be the use of bitcoin or tether being used to evade u.s. sanctions given the use of it around the world, particularly out of russia? >> the key to digital is that it's always digital. when we went into iraq, they had $4 billion on pallets but

digital money you can trace. firms like circle and tether work -- have to deeply and closely with law enforcement. all they can do is move around in the blockchain but they always keep track. think of the ai and think of the tools the government will have. they will get better and better. government moves reasonably slow but it always gets there. sooner or later it will get there so they will have great ai tools and they will use their ai tools and of any criminal wants to use circle or tether is going to get caught. it's going to get seized because it's digital. you can't really hide it. it's on the blockchain and you can follow it from year-to-year. it's good for news to say they are using it like this and this but they will all get caught. tether and circle are working closely with law enforcement and these crooks, it so much worse than a regular dollar, at least

a dollar in their pocket they can hide but how can they hide a digital dollar? that's a joke. sonali: we thank you so very much for breaking your big news with us and congratulations on getting this off the ground and for all of your candor. that's howardlennick. stick with us, much more news ahead, this is bloomberg. ♪

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sonali: the latest gdp data sending yield to the highest levels of the year as traders now expect the fed to cut rates. it's possibly in december at the earliest. we discussed the changing expectations and why was this gdp data enough to move the needle in terms of bed swaps? >> it's interesting because the data we saw come out this morning not only showed a gdp but also a core underlying

inflation gauge and that's what the bond market focused on. we saw this move higher in yields, the route in treasuries continuing in the wake of that data. if you are a bond trader on wall street now, it is extremely difficult to ignore the evidence we've seen for economic indicators that shows inflation is rather sticky in the u.s. and that makes it more challenging for federal reserve officials to end up cutting interest rates. we still have swaps traders and we saw them go and push their expectation for the first fully priced in fed rate reduction to december. before the data hit, it was november still. sonali: how do you feel about the upcoming economic dates. we still have pce before the big fed meeting next week? how do traders look at this volatility? >> it depends what the data shows. fed officials have said they

have little choice but to be data-dependent and they are there watching the indicators closely in the market is doing the same. with pce tomorrow, that will set the stage for next week's federal reserve meeting as well as employment data coming out next friday which will give us a good gauge of how the labor market has been behaving and whether the fed can truly go ahead and rain inflation in enough that they can reduce interest rates. the timing gets more challenging. the further into the year we get, we have elections and other complications that up the ante and the focus on when rate cuts will come. sonali: we thank you so much for keeping an eye on all the moves in the bond market. we will talk more about the economy and markets next with jim binanco with a stiff mood downward in the stock market and sharply higher in yields. we will make sense of all of it for you. this is bloomberg.

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sonali: this is bloomberg markets. let's check on these markets because we are still heading lower. the s&p 500 is not as low as it was before, off the lows of the day but we are still about 5000 and weird down now 0.8%. the nasdaq 100 is still maintaining its losses of more than 1% as does the dow jones industrial average with the vix slightly on the rise. the two year yield is just under 5%. we are looking at a six basis point higher after the gdp dater -- data and the 10 year is six basis point higher.

crude oil is taking a leg lower and gold is on the rise once again. the mid-day movers and the equity side, let's look at southwest airlines slowing growth and ending service at for airports and offering voluntary solutions to significant -- two mitigate problems. they said they would operate with fewer employees and flying capacity growth will declines of 4% in 2024. southwest is down almost 7.5%. macron was awarded six point $1 billion in grants and as much as 7.5 million dollars in loans to build factories in the united states. the chipmaker place to invest about 125 billion dollars to build for factories, intel, tsmc and intel are getting grants from the chips act and you have my cramped up -- you have micron up about 0.2%.

hurts reported a loss that was three times worse than analysts expected. accelerated sales of ev's to reduce its fleet of tesla models have weighed on profits for the past year. hurts is down about 18% on the day or more. strong consumer demand and muted price pressures had fueled optimism for a soft landing and are beginning to sputter. first quarter gdp growth was slower than expected. >> i think the fact that we believe inflation will prove more sticky than it has, it sticky for us by the fed's measure which is core pce. it may settle at 2.5% and the fed, i don't see why the fed would be rushing to be cutting rates in an environment where inflation is still sticky. sonali: jim bianco joins us now.

how do you take a look at the data this morning knowing we have more data to swallow ahead? >> the headline number looked a little bit weak but when you look underneath it, a lot of was trade and inventories that drag to the economy down. the traditional measures of spending have been there and then it was the inflation numbers. they were above consensus, 3.7% annualized rate for the consumption deflator and that's a problem because it suggests the economy is not slowing enough if it's slowing at all and it's bringing down inflation. and that inflation will continue to stay a problem. that's what i think was the primary catalyst to hit six month highs today. sonali: you look at the two-year and is nearly touching 5%. it's trying to break into that level. how do you think this change in the calculus around people willing to train this to trade is bond market?

>> wen yu focus on the two-year, we seem to be pushing out the rate cut all the way to december. that's the process of bringing in a rate hike. if you don't bring in a rate hike, there is a very limited amount the two year yield can go up. if the fed is not going to raise rates anymore, it can still go up some but not a whole lot. if the economy is not slowing, that could become somewhat of a stimulus for the economy that you might need higher interest rates. i think you will probably see rates -- the fed right higher but not much more from here. probably in the seventh inning of this rise in rates. a lot can happen in the final innings of a game but you're getting toward the end of this move right now. it can be painful especially for risk markets like equities. the stock market has really been

struggling in of it goes through five, i think it will continue to struggle. sonali: how much would it struggle from here in which assets struggle the most in that scenario? >> let's go back to last year. from july to october, the 10 year yield went from 380 to 5%. the s&p 500 corrected at 10%. it's gone from 380 to 470 in this move. it's almost like it's a complete overlay of last year. if you just follow that, you could have another 10% correction. we are halfway there. what typically has been the interest rate sensitive sectors like small-cap stocks and value stocks that matter more for interest rates seem to be struggling more. today, you've got the magnificent seven stocks struggling at the back of earnings. it will be a big headwind for the stock market, these higher

rates. sonali: speaking of stocks in the middle of earnings season, you saw a big shift in sentiment heading into this week with so much optimism but there were days when every magnificent seven stock was in the green. that's this week and you look at today, there is a very different story. how do you handicap how to feel about big tech in this environment? >> it's funny you brought that up. by tuesday's close, two days ago, the stock market was on its way and it seems to be doing well and did we remember last week which was the worst week in a year? there was a 6% correction and we are not near the all-time highs in the stock market right now. then reality hit is yesterday in reality is hitting us a little today. this is a correction and if there is some headwinds the market has to face, we will have to basically, i think we will have to reassess our views about

big tech and reassess -- that's not to say the market will go down but we had a straight line 28% rally for six months in the stock market. that's extraordinary. that has already happened and now we are in a correction stage. we will probably hold most of those gains but of people think no one is supposed to straight line 28% all the time, you already added area there is probably not going to be another one like this for a while. sonali: what to think about the potential for rate cuts or rate hikes? if you think about the risk that you presented earlier, the risk of rates going higher, what are you watching to gauge how big that risk could be? >> you've got one rate cut priced in for the year down from six couple of months ago. i would probably say the probability of a rate hike is not much above zero. it's not about 50%.

they are leaning that way. all year, we've seen beats in payrolls and cpi, retail sales and a lot of the headline numbers. if we continue to see beats, that probability of a rate hike will continue to increase. let's throw the calendar in there. it's an election year. these numbers could massively beat in the fed is not going to raise rates. if that is warranted until the end of the year. the problem they face is if it's warranted sooner, they will probably stall because of the election and that could actually over stimulate the economy. we better start seeing some slowing in the economy real soon . otherwise, this rate cut will become a rate hike and it will become a rate hike months away because of the election and that could be problematic. sonali: what to think about the potential for things to slow a little faster than people expect? thinking back to gdp data and

the mixed bag you are getting with the idea of slowing gdp but persistent inflation. you wonder whether rate hikes or staying stable at this level, at what point does that ripple effect start to weaken things faster, perhaps much faster than many expect now? >> if you look at the gdp number, what you saw is it was a week government number. it only added 0.2% to the overall 1.6 number when the government has been adding more than that. the government is not found in austerity program that will rein it in. you will either see revisions to that number or big bounce back in subsequent quarters of that number in the same thing with traded exports. they tracked gdp by 1% and have been adding to gdp and that will come. you take a look at those numbers that drags down gdp in the consumer spending numbers are staying relatively strong. i'm having a hard time seeing

where the slow down the economy is going to come from. it will slow a little bit but probably not enough to rein in inflation. 1.6 percent headline today did not come for the bond market for reining in inflation. if we continue to see stronger numbers, we will continue to see higher rates probably pushing through 5%. it will get everyone worked up that inflation is a real problem. sonali: we thank you for giving us so much time. present and macro strategist atbianco research. royal caribbean ceo joins us to discuss travel consumer demand and the latest earnings results. that conversation is up next. this is bloomberg. ♪

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♪ sonali: this is bloomberg markets. it's time now for the stock of the hour. royal caribbean shares moving higher after the cruise operator boosted is full-year profit forecast and demand for cruises continues to search. let's discuss was with the royal caribbean ceo. a lot of folks look at the cruise industry as a tremendous rebound since covid. the idea that a lot of people have come back and you boosted your forecast and people are coming back so how convinced are you that this boom can keep running at and at what pace? >> it's great to be here and thank you for having me today. we feel really bullish about the demand we are seeing from our

customers and the sustainability of that demand. one way is the cruise industry is about $65 billion per year in revenue and that's a fraction of the $1.9 trillion travel economy. we think because there is such a small sliver, there is a lot of opportunity. when you consider how we trade versus others, there is a steep discount or value play on other cruises. when you get into the demographics and secular trends, you've seen experiences outpays spend on stuff. that rate has increased twofold coming out of covid. people are looking for experiences, multigenerational travel which supports the demographics that are going on. we happen to be in the experience space. the last point i want to make is

that one of the things you really see is that our guests are looking to walk away with a great experience and great stories. we really have focused our business and making sure we are competitive to land-based vacations. we are closing that gap to land-based vacations from a pricing standpoint and beginning to pick up on gaining share from land-based which is a high priority for us. sonali: as you have new customers, how much do you have to outlay to support those customers? i hadn't thought about this before but royal caribbean must be buying an insane amount of lobsters and bananas. how are you spending these days and how is inflation impacting you? >> on average, we have 170-180 thousand guests with us each and every day. we are of his lead buying a lot of commodities to support that. we buy probably close to 100 million bananas per year for

5000 eggs per week. there is a lot of volume that goes into support this business. one thing we saw as we crossed the year is those commodities not only flattened but they began to come down a little bit. we saw a lot of inflation occur in 22 and 23 but fortunately, we did the hard work during the pandemic to rewrite our cost structure which absorbed the vast majority of that that came into the business. sonali: people have a question on the demographic you are playing with. are you getting recurring bookings from diehard crews goers or are you getting new people coming on board? >> on our loyalty base, we've seen about a 30% rise in repeat rates here in the past year. our guests are very keen on sailing with us over and over again but the rise in new to the

cruise has been very impressive. today about a third of our guests are new and one third are first for the brand and one third are loyalists. we've seen a huge change in that shift over the past couple of years. the other interesting fact is the average age of our guests is getting younger. one out of every two guess is now a millennial or younger on our ships. the consideration for cruise has reached a competitive level when land based on the millennials are really seeking those experiences. when you combine them with the best ships in the world, going to the best destinations in the world and having private destinations off the coast of florida, that's generating a new wave of demand we did not see pre-covid. sonali: more cash on hand, all of these new cruises, how do you see expanding move it forward? is m&a a potential to expand?

>> certainly it's always a potential. we are very focused in excelling in our core and growing our core. we've been deliberate about having the best brands in the right segments with the best ships and going to the best destinations. we are investing quite heavily in our core and growing the core and private destinations. also a huge upgrade to our commercial apparatus technology was to make sure we are employing things like ai to help curate the experience to take friction out of the guest experience each and every day. when you put that together, there is always m&a opportunities and how we can enrich the expense and how do we keep the customer in the ecosystem. that's true loyalty and having the best brands in these segments so that our guests can trade based of loft if and experiences they are looking to do currently. sonali: what do you see the

competitive environment looking like with newer firms popping up? viking holdings is focused on the luxury market and is expected to go public. do you see people entering the space and how do navigate around that? >> viking been around a long time and viking doesn't exceptional job. i think it's good for us to have another public comparable that's out there. when we look at the competitive set, what's important is we keep and i on what the other large cruise lines are doing and it's tough to get into this business because the capital requirements are really high. we are much more focused on delivering a lifetime of vacations. i didn't use the wordcruise because it's a lifetime of vacation so we can close that gap. if you think about a 1% share

shift in land-based travel c toruises is worth 11 ships and we are trying to close that gap and that's the competitive edge that we are focused on. sonali: thank you so much for joining us on a very busy earnings day. coming up next, we will go to the investment banking world, building out transition finances deutsche bank investment bankers are stepping up in a big way. we will look at banks today on today's wall street beat. this is bloomberg. ♪

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sonali: now for some news across wall street, viking global led by halverson raised $3.5 billion for its flagship hedge fund after opening it to new cash for the first time in a decade. that booze the firm's assets to nearly $49 billion. viking has a reputation as a solid performer even when peers

are struggling very volatile funds. it started raising in january of 2023 to replace client -- client withdrawals and capitalize and market volatility. it will stop accepting new money on july 1 and will be closed for the foreseeable future according to an investor letter. time for the wall street beat. the big banks that are making headlines or out of europe. deutsche bank says they see strong momentum in investment banking and barclays says they need more money to go toward climate transition projects and that will fuel some work for their investment bankers. what is the play that deutsche bank is making here? >> deutsche bank is relying on its investment bankers, it's traders to grow their revenue. what they are seeing is a lot of the rapid rate -- rate increases weighing on their core lending products. the recent results are showing

strength in investment banking. it's reflective of what we saw from a lot of the u.s. banks in a return to capital markets for m&a picking up. it is not only reflective of the strong momentum in the first quarter which is what they are talking about now but it's an indicator of the rest of the year, a lot of the executives including the deutsche bank executives with the cfo speaking on tv talk to -- talk about expected momentum continuing into the next quarter and maybe for the remainder of the year. sonali: deutsche bank is historically big in the fixed income market. fixed income trading not only came in better than expected, it came in better than the biggest u.s. investment banks in some cases. >> some of the biggest u.s. investment banks, yes. that's what they called out is one of their strengths which it has been historically we saw in the first quarter and they are calling out their strength from their income of advising on deal so another sign of pickup in

deal activity at a bank. sonali: how do we compare with what's happening with deutsche bank to what's happening at barclays. barclays is in for sizing what -- is emphasizing what they see as middle-market, transition companies transitioning from fossil fuel to clean energy. what they are -- what they say they are seeing a need for the development of projects and this fine line between being too advanced for vc investors into nascent for these industrial investors. it's a fine line but they don't see this as an issue. they see this as an opportunity. they've been hiring bankers to focus on this and advise their clients and hopefully, they think that will add to their fee to come in future quarters. sonali: investment bankers should now get a move on it's been said. thank you for keeping an eye on the european giants.

that does it for bloomberg markets for the day. volatile markets ahead so stick around with us to the closing i will join you then as well. this is bloomberg. ♪ the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business.

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