>> our policy rate is likely at its peak. it will be appropriate to begin dialing back at some point. >> i think this is a signal that

they will tolerate higher inflation for longer. >> i guess they have to tolerate higher inflation in the near term but i don't think they are giving up on that goal. >> this is a fed that once that soft landing. >> i still think we are going to cut rates. it depends on the data. >> this is bloomberg surveillance with jonathan ferro, lisa abramowicz and annmarie hordern. >> good morning. this is bloomberg surveillance. the third hour. wrapping up a week of central bank decisions. the snb with a surprising cut, dropping 25 basis points. at the bank of england, that decision crossing. we were looking for two dissenters who previously had their hand up and asked for hikes. no more. >> what we saw is both dropping their votes for higher rates.

we were talking about how great it is for the bank of england that they get dissent. no more. eight voted. nobody voted to increase the rate. this is a bank of england that's facing off with cutting rates. >> all about how this sets up the next meeting. when you get a projections, that might be the time they reduce interest rates. in the same way, it feels like the june meeting might be the next time. that might be the meeting they reduce rates. either way, they are taking the time. >> everything seems to be coalescing. when you take a look at some of their projections, they expect inflation to fall below 2%. wage growth has moderated across a number of measures. so you have a bank of england justifying why they would be in an easing posture in the near future. >> the pound weaker. it was going into this -0.4% on

cable. we are picking up where we left up yes -- left off yesterday on the s&p. higher off the back of all-time highs on the s&p 500. we had some weight to the close and to the rally in the bond market. >> the fed essentially, and this is what we have been hearing all morning, is prioritizing the extension of a soft landing and an economic cycle at the expense potentially of being more aggressive and bring down inflation sooner. our people than worried about inflation picking up? that's why we are looking at gold. >> we wanted to know how the data would change the

conversation on the fomc. it did not there looking through hotter than expected inflation prints and thinking the trend is intact and maybe we are in a position to reduce interest rates. this fed wants to cut interest rates.i don't think you can draw any other conclusion after listening to chair powell yesterday. >> this is not set them back. it does not seem like they lost confidence that they were not going to cut. some of the longer-term questions remain. where they go to, the terminal rate, how far can they cut? a lot of people are talking about simply normalizing, not easing. we will spend the next couple months parsing through that. stay tuned. >> they will be great. here is the lineup. gargi, stephanie, brian.

stocks hitting fresh all-time highs following dovish news. small caps delivering their best day in about a month. blackrock's gargi chowdhury saying this. gargi, i'm pleased to say, joins us. it's important to go back. this market was priced for six or seven rate cuts. you said that was nonsense. we would not see cuts until the second half of 2024. what were you looking at that has played out in the fashion you expected? >> back when we were here in december and talked about the five or six cuts that were

nonsense -- i don't think that was used -- but we saw the market had priced into many rate cuts. review was inflation will remain sticky -- the view was inflation will remain sticky. it's still about 5%. we have seen inflation coming down but not quite where we would have liked it to be. yesterday, it was interesting to hear chair powell sound so confident about the deceleration, to your point, he did say he is not gaining greater confidence, but he seems to be sure this is just a bump along the road, and for the most part he's focusing on the deceleration we got in the second half of 2023, not so much on the acceleration in the first two months of the year. >> he's not lost confidence. what is in the inflation number now that he can take confidence

from? >> a couple of things i was looking at yesterday is for us to get to core pce at 2.6%. we kind of know what this month's data will be given the inputs on cpi and ppi. the rest of the year, he would have to be sure that you are going to get pce at .16 or .17. i guess that is one thing they are relying on, that even if inflation on cpi remains strong, that it's pce, which has a long wait, saves them a little bit. i also think you focused on non-housing services, they expect that to decelerate. so there core measure is still at .47. imagining they expect that to come down. one positive thing i did see in

this month's cpi print was unlike january, every single services sector did not re-accelerate. we did see that in the january print, which was scary to me. this time around, they came back to trend. that's a positive sign. finally, good said that aberration for used cars. that is something we could see moderate. >> i understand why the front end of the yield curve would rally. i have less of a clear sense of why you are seeing such a rally in the 10 year with yields now at four -- at 4.2%. you have seen this come in around 10 basis points. does this make sense to you if the fed is saying they are ok with inflation running hotter for longer? >> definitely agree that the front end makes sense.

on the 10 year, it's just range bound. we have seen that 4.31 level a few times. between now and the next important print, it will be the nonfarm payroll we get. i think we trade in a range bound fashion. over the longer or medium period of time, can we see yield curve steepen? . absolutely. that belly of the curve, that is where you want to move. i don't think you quite need to get to the 10 year point. we could certainly see 4.3% or higher. for now, i think it's range bound. >> this is why i think the gold rally is interesting. where do you get that ballast if longer-term treasuries don't have the same features at a time where the fed is willing to ease even though inflation is not back to target? is there a sense that

longer-term bonds don't hold the same ballast they use to simile because this is an economy that will tolerate higher inflation -- to simply because this is an economy that will tolerate higher inflation? >> there's a sense that when you have this much supply coming to the markets and the yield curve that's still not pricing in enough premium that you have better ballast in the belly of the curve. so i don't think it's about fixed income losing ballast. we certainly have ballast. we are better off stepping out of cash or diversifying away from equities. you don't need to step out. get it in the five year, the seven-year come in credit -- seven-year, and credit -- in credit. that's what investors should be thinking about. it's been interesting to see how equities and gold are making all-time highs and i place a

little bit of that in the inflation fear but dips have not done as well. the way to play this might be an allocation into an asset class that appreciates with cpi. >> interesting. you think the opportunity might be in tips more than what's already rallying. >> stocks will continue to do well, high-quality stocks. we might see a little bit of a small cap rally. what's going to work for the medium-term is quality. tips make a lot of sense. >> so that is fixed income. let's finish on equities. what is it about small caps you like at the moment? the big performers yesterday, continues this morning. >> we don't think small caps will be that even if it did well yesterday. for the longer. of time, large-cap and quality,

that will continue to do well. small-cap is more of a rebound trade. i doubt how long it will last. >> that continues this morning. love it. gargi chaudhuri of blackrock. to recap the bank of england decision, rates unchanged. we were looking for the vote. with two hawkish dissenters still hawkish. that's a change. a step towards may be reduction in interest rates. governor bailey making the point we are not at the point yet to cut rates. >> but making progress for that. that is eerily seeing the same kind of dissent. is this setting up phrygian to be a blockbuster month? >> the sterling weaker.

having a decent year so far against the dollar. on the session weaker by .3%. an update on stories elsewhere. here is your bloomberg green. >> jake sullivan is in ukraine, promising the house will approve $60 billion in stalled aid to the country. key woke up this morning to its first large-scale attack on russia and more than a month. ukraine says it shot down 31 missiles. new zealand's economy unexpectedly contracted in the final quarter of 2023, pushing the country into recession, gdp falling for the second straight quarter. economists had been expecting growth of 0.1%. high interest rates have dampened consumer spending and investment with the reserve bank keeping rates on hold since may and last month signaling it does not intend to lower rates until 2025 citing record immigration

and stubborn core inflation. the l.a. dr. the shelly dodgers firing the interpreter for show a otani -- the l.a. dodgers firing the interpreter for shohei ohtani. questions were raised after 4.5 million dollars in wire transfers were sent from the player's bank account to a bookmaker. he signed a contract with the team last year. that's your bloomberg green. >> thank you. next, bidens antitrust crackdown. >> we are looking at when you are in charge you want to push your priorities. we've had a seismic shift at a glacial pace. >> that next. from new york, this is bloomberg. ♪

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>> welcome. record highs yesterday. more on the cards this morning. so now performers on the russell yesterday, small caps that some -- some outperformer's on the russell yesterday, small caps pushing higher. earlier, had an snb decision. the bank of england unchanged but the vote was different. there were two hawkish members pushing for hikes. not anymore. >> not anymore on the bank of

england. here's a question. what has shifted materially for always central banks that allows them to have confidence that they don't need to go further. has inflation come down? are we seeing more signs of weakness? or is there something else shifting where the emphasis needs to be on growth and away from combating inflation? >> the reaction function shifted. the way they respond to the incoming information. ultimately, the destination has not changed. >> which highlights a couple key questions. one, how much our central banks standing away from trying to put the breaks on the spending we see around the world? it's in the u.k. and generally the euro region. >> under surveillance, biden's antitrust crackdown heating up.

>> we have large antitrust activity in this country, major technological change, major income inequality. when you are in charge you want to push your priorities, so what we have set as we have had a seismic shift at a glacial pace. >> the justice department preparing to sue apple as early as today for alleged antitrust violations. the doj will accuse the tech giant of blocking rivals from accessing hardware and software features, adding to the biden administration crackdown. alex webb joins us to discuss. what are we expecting to hear as soon as today? >> the key thing will be what exactly the doj is focusing on. we know broadly what has been looked at on a high level, stuff like access to payments.

when you use contactless payment. if you ask your iphone to play music, it will default to apple music. opening that to companies like spotify, forcing companies to give their revenue to apple all those things are possible,. we don't know what will be the focus. that will be looked at with interest. >> this is the doj, the u.s. justice department. typically we would be talking about the europeans going after apple. is this becoming global, somewhat universal? >> it certainly looks that way. a lot of the action happening has been led by europe. we have noticed it a little in california in the form of the ccpa and other things coming up. there have been state efforts around the u.s. so far, they have not been massively successful.

we are seeing a push for more regulatory change in the u.s. people start to look at tiktok for instance and say should it not be a broader regulation of social media companies as a whole? so the u.s. is gathering pace. the charges being led from europe but there are learnings being applied to the u.s. >> is this theater or does this have legs in terms of shifting apple's business materially? >> the actual direct impact on apple's business is going to be around the fringes. what you have seen in the past, and this was the case with microsoft, is if you become subject to persistent, recurrent or recurring targeting from or criticism from antitrust authorities, it changes the culture internally. there becomes less risk-taking, more second-guessing, are we going to get in trouble if we do this? should i send this email because of my come up in discovery later?

this affects the way business proceeds and it's apposite -- and its appetite for innovation. that might be a bigger risk than any immediate impact on apple's bottom line. >> one of the questions is around is the government trying to support u.s. tech companies or pushback against them? we are looking at intel building a plant and the idea of investing in some of the technological leaders and then we talk about antitrust and potentially banning deals. which is it? >> i think it is good and it shows there is an effective balance of power in government that there is not sort of one hymn the legislature or judiciary is singing. they are judging on the merits of each individual case. intel has maybe lost a step when it comes to chips. the bleeding edge chips today

are made in taiwan and south korea, fabricated in those countries. a lot of that is due to missteps at intel itself. so do we give them support to bring forward? you can see the case for that. i think each case is an needs to be taken on its own merits. >> tim cook today is in washington, d.c. with legal representation. that's what's been driving the stock to some extent. the failure to find significant growth in markets outside the u.s. and the difficulties outside china and in the u.s. to get that big upgrade cycle we have been looking for. where are week? are we on track to put ai tools on a new iphone this year? >> the reporting from our colleague suggests there will be ai tools on iphones perhaps this

calendar year. will they be developed by apple? that looks less likely or decreasing likely to be the case. it seems as though it could be google's offering, gemini, powering some of the ai stuff when you interact with siri, for instance. apple is making a defensive move to catch up. it seems the stock has suffered from a perceived lack of ai innovation. as ever with apple, and it risks becoming a cliche, you should never count them out entirely. they are often late to the table with a particular innovation but when they do come to the table have something quite compelling. we are early in this ai race. they have a lot of existing stickiness with their customers, which is one of the reasons the doj is coming after them. they have time to catch up on a on. >> alex webb out of london on apple and the doj case against them potentially being unveiled

today and the difficulties in china. tim cook is not in washington. he's in shanghai trying to do something about a market that is lagging somewhat. >> did you see the pictures of him entering the store and people cheering? >> thunderous applause. >> to me this is interesting. how do you try to make a pitch in a country that's actively trying to move away from your product because of where you come from? that's a very interesting moment and it makes me wonder, do they see a business proposition other people don't continuing in china? or is this trying to kowtow to the powers that be? >> it's a massive market for them. just an absolutely massive market. we get earnings from apple in early may. we turn our attention to the economic data. jobless claims. the estimate is 213,000. the previous number is 209,000. as we often say, if you drew a

chart back 50 years, jobless claims around 200,000 is exceptionally low. it's very low. >> that's why jay powell had to look to the >> rate yesterday in the jolts -- the quits rate in the jolts to to yesterday to find weakness in the labor market. >> how do you find data that we are sufficiently restrictive? quits apparently. stephanie roth join us. michael mckee will bring the data. from new york city, this is bloomberg. ♪ ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim:

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>> equities on the s&p up .5%, on the nasdaq up 1%. this is an aggressive rally over the last 24 hours, a green light to buy stocks and bonds. check out the two-year. the 10 year down four. the two year yield. jobless claims about to break. the estimate is 213,000. mike mckee has the number. >> not a surprise the way things have been going. we fall again. 210,000 is the number for last week. continuing claims are down compared with the initial report last week. i don't have the revisions yet.

but one million 807,000 compared to one million 811,000. the fed business index comes in at 3.2, down from 5.2 but better than the -2.5 that was expected. prices paid in the philly fed, 3.7 versus 16.6. so i assume the people at the fed will be happy about that. any idea maybe prices are going down. last week was 212,000, up from 209,000. continuing claims were one million 803,000. we rose a little. no change in the labor market. it is still good. the latest indication we have on prices is not bad. >> so not much news here. let's go back to yesterday. you are in the room. powell is talking about evidence

of being sufficiently restrictive. when powell did that, what were you thinking? >> it is how you look at it. you can look at it. it's hard to argue flat when it's as round as it is. they're still a lot of tightness in the labor market, which he sort of admitted that the jolts -- admitted when he said that the jolts numbers are not as down as far as pre-pandemic but have come down. so they are still looking at that is ok, which gives them permission to essentially sit with rates higher for longer. >> were you surprised that jay powell did not have a clear answer to this question of the tension between higher projections for gdp, higher projections for inflation, but the same number of rate cuts this year? >> no. it's difficult. it would be difficult for anybody to square that circle. you kind of knew he would have a hard time doing that.

you sort of look under the hood of what happened at the fed. it was that everybody basically moved up. but the bottom people moved up into the medium. so at this point, that does not change. the general feeling among the committee is there's a good chance they might go to 2%. i thought one of the most interesting things is when powell told us what the pc core would be. 30 basis points, .3%, which would be a good result for them, down from the .4% we have been seeing. fed staff are giving them some hope, i guess, that the inflation problem was like that. >> how common is that? >> unusual. he does not have the data itself. he has the approximation of the data.

he is not really leaking the data but they have done the math. you can do that with cpi data inputting into pce and they are saying this is what we likely to get. you know what will happen next friday, nothing because the markets are closed, but that's when they release the pc. so he's out on a limb. >> we will do that from home. payrolls. >> we would say it's payrolls. i think everybody felt that. >> great work. if you are just joining, jobless claims 210,000. if you are just joining us, we need to talk about what happened yesterday in the projections. is this medium? a talk about where we are now, where there projections are currently relative to where they were in december.

gdp 2.1%, previous projection 1.4, unemployment 4%, december projection 4.1%, core pce 2.6%, revised from 2.4%, and medium, surface level, 4.6, in line with the previous one, so implying still three cuts. stephanie roth joins us. we need to begin their. we need to start with those projections. what jumped off the page for you yesterday? >> the gdp number. seeing that jump by 70 basis points in combination with inflation bumping. that tells you that we are seeing a supply-side to namic in terms of gdp that will not bring much inflation. the upward revision was kind of aid mark -- of a mark to mark.

>> you don't think it's a contradiction? >> it tells you something about the reaction function that's shifted to some extent in the sense that we could see higher inflation and it will be ok with it -- and they will be ok with it and they are not worried about strong growth anymore. last year, that was something they were concerned about. now they see strong growth is not necessarily inflationary. >> so what is inflationary and how much control do they have over it? >> it could still be the labor market if the supply does not come through. that's where you could run into challenges. if you continue to see strong payrolls growth and labor supply does not come through, that becomes a challenge. the trends in terms of immigration is looking stronger. if you look at the recent cbo projections, there could be more labor supply. >> i'm struggling to understand whether the fed has had any influence over inflation at all. if what we're saying is if it

comes from other factors related to interest rates, it does not matter if you move them up or down, then what are we talking about with the fed? what is the role if the inflation we are looking at is not related to their policy? >> some of it was transitory. we have had this conversation before. in terms of risk management, they had to raise rates aggressively, because in case that was not true, that would have been 1970's style inflation. so it's hard to disentangle what was transitory and what was driven by policy. it was probably a combination of both but the transitory factor seems perhaps more important. >> when the chairman is asked and fed officials are asked are we significantly restrictive and point to the labor market is evidence they are, are they right? >> that's a tough one. powell talked about his models. >> we can all agree there was a massive supply-side dynamic taking place leading to changes

in the labor market. how can we draw a dotted line back to the fed based on that? >> that's a tough one. it's probably a combination of the labor market coming back in the balance, partially because companies who have had excess demand for labor satisfy that. a lot of it was luck and a little bit of hikes doing their job. >> talking about the awkwardness of the fed fighting fiscal stimulus and that that was going to be where we were this year and it seems as though everyone is talking about spending that is still coming back into the market or into the market from the federal government and a fed that is ok with that and does not see that as inflationary and does not see the need to offset that with materially higher rates for longer. does that ring true to you, that they are on the same page with trying to stimulate, not suppress? >> to some extent.

last year was a good indication. the chips spending was quite strong. so those two are in conflict to an extent but as long as inflation is coming back down, that's ok. >> how much are you upgrading your growth expectations generally for the u.s. if this is the reaction function in reality we are in? >> we are at 2.4% for this year. we have been expecting three cuts. we have not had to change it. from where we were six months ago before powell pivoted, we were looking at 1.5% gdp growth. we made a similar adjustment in anticipation of the fed being able to be dovish for longer partially because our expectation is inflation could come down to 2%. >> when the chairman says we are committed to getting inflation back to target, is he less committed now than a couple

years ago, back in august 2022? >> i think he is still as committed, just convinced that inflation is on the right path. if you talk about the seasonal problems, i agree. if you look back to core pce inflation in november, it was nine basis points. >> is that why you can call this a bump in the road? >> this is what they predicted all along. the only question is are they going to be right about the fact that it was transitory and things start to fall back down again? there are some categories that are surprising. used cars surprised. we have no idea what will happen with energy. but their view is we will get a natural disinflation. to continue. >> the t word aggravates people. >> i do not use that. >> transitory. >> the core belief of this

federal reserve. it's a word they are scared of using. >> they got pilloried for using it when we were coming out of the pandemic. they were not totally wrong. it was a question of timing. what is the definition of transitory? but a lot of things that went up in price because the supply was not there have now come down because supply chains have normalized. >> what is not transitory? what are the aspects you are watching the gives you pause with respect to the pace down? >> some of the service sector inflation is running hot. i believe may transitory is not right the -- not the right word. that's real inflation that is happening. people are traveling and there are some areas within a service sector where you are continuing to see fairly firm inflation

prints. but as the labor market has cooled, that should continue to slow. that's something i'm keeping the closest ion. people have stopped talking about super core but that is important. >> meanwhile, i keep going back to concepts around inflation and how it is not really driven by chair powell. he says it's driven in part by taylor swift. i'm putting words in his mouth but he talked about how there are some independent of the fed trends like the eras tour. >> waiting for a message from rick to say what is she talking about. >> how much is the discretionary spending of consumers still a concern that they can shell out $10,000 free ticket? >> that is the story we have had over the past couple years. people have had a lot of discretionary income. that has largely worked its way through.

they are probably not going to spend to that same extent. now you are starting to see these things normalize, we are looking at an environment where gdp growth should trend something like 2%. jon: are they going on the icon of the seas? lisa: to listen to the eras tou r. jon: cannot believe sebastian page went on the icon of the seas. lisa: he was proud of it. jon: three blocks long. lisa: how many adults are doing it for themselves versus their kids? if you get a vacation where you don't have to cater to anyone. jon: tom has gone on a cruise. that is where he is. time of his life. absolutely loving it. lisa: does he like the waterslide? jon: i'm not sure he went on the waterslide. there are some things no one needs to see.

stephanie, thank you. stephanie roth of wolf research. an update on stories elsewhere. here's your brief. >> the bank of england keeping rates unchanged but two members have dropped support for future hikes. they joined the majority to keep rates at 16 year highs. after the decision, governor bailey cautioned the bank was still not at a point to cut rates. recent data has pointed to easing inflation and weakness in the labor market. the economy faced a technical recession and the second half of last year. the biden administration is announcing another wave of student debt relief. about $6 billion in debt will be counseled across 78,000 americans in public service. teachers, nurses, firefighters and others who have paid for 10 years will have the remainder of their student debt bounces canceled. in total, the white house has

forgiven about $144 billion of debt for almost 4 million people. maria cantwell says she may hold a public hearing on tiktok after yesterday's briefing with u.s. intelligence officials. democratic senater richard blumenthal calling tiktok a "clear and present danger." the senate has been reluctant to rush a bill to ban or force the sale of the app after a measure passed the house last week. bytedance continues to deny any wrongdoing. jon: next, read's blockbuster ipo. >> companies will be more disciplined about when they tap the markets. they will want to be able to articulate a path to profitability when companies come to the public markets. they will be public market ready. jon: that conversation next.

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jon: economic data out 17 minutes ago. jobless claims came in at 210,000. we call that the right kind of downside surprise. equities near session highs, up .5%, adding some weight to the rally of yesterday. we are up nicely. bonds rallying, yields lower by two or three basis points. under surveillance this morning, reddit's blockbuster ipo. >> companies will be more disciplined about when they tap the public markets. they will want to articulate a

path to profitability when companies come to the public markets. they will be public market ready. they will be able to articulate a clear message to investors, to their shareholders, that will enable them to thrive. jon: social media platform reddit making its market debut, raising $740 million, shares pricing at $34. saying this is a small but still large digital platform and like others with logged in users more valuable to marketers with every passing year. it should continue to take share of the u.s. and global advertising markets. can we talk about that? just how much ad revenue is that business currently taking on and how much upside potential is there? brian: it is something like $100 million. it is a decent sized business, still pretty small compared to

the other walled gardens, but they have only been a business in a normal sense for about four or five years. they tried to make money from advertising and it did not go far, but the current iteration of the business is new, still growing. they are doing a lot of work around safety. they are building a lot of brand relationships. so pretty early days. jon: for big ad budgets now and people overseeing them, what does a platform like this bring to the table? what audience does it bring them? brian: the first thing i like to point out his diversification -- out is diversification in the sense that large advertisers don't like to feel they are locked in or spending too much with the biggest platforms, google, etc. that's the first thing to think about. they are playing up contextual advertising. contextual meaning old-school

advertising, like magazines, where you reach people based on interests, as opposed to a lot of data, meaning cookies or other forms where the consumer does not even realize they are being targeted for their personal data. i think a lot of advertisers like that element. so there's a lot of positives in that sense. lisa: the advertisers like it. want to don't like it, the reddit users. they resend the ipo for commercializing sort of the bastion of blunt conversation. how much will that matter to the business proposition? brian: i doubt it will matter much. as long as the users are not turned off any meaningful way. i say this as a former college radio person where we did not believe in advertising at all. i am mindful of those preferences a lot of people have. i think as long as it's not

intrusive. the whole idea of that is important. if it is too overwhelming, you turn users of, but if they are doing something unique, and there really is nothing else like reddit, so i think most people will probably continue using it. abigail: is there anything -- lisa: is there anything else you see out there that looks like a candidate for ipo work more attractive for the alternative ways advertisers are looking for their content to reach eyeballs? brian: there's a platform from singapore called tiktok. have you heard of it? lisa: never heard of it. jon: what do you think is going to come from this hearing? brian: i have no idea. it seems inevitable that they will either be forced to sell in some form. and it does not look like selling to a u.s. business alone does not make any sense whatsoever -- business alone

makes any sense whatsoever. i cannot pretend to know what the senate will actually do. it does feel, though, that there will be some change to the status quo. it does not feel tenable. jon: the former president has made the point -- some believe it. that if you ban tiktok, there's only one winner, meta and mark zuckerberg. is that how you see it? brian: not only one winner. i think snape would be well-positioned potentially. reddit would benefit on the margins. if you look at where large advertiser budgets will go, they will look for new homes. reddit is not a direct substitute for tiktok. we don't know exactly how much u.s. ad revenue there is. there was a 50 articles saying $16 billion. that has to include e-commerce and other activities.

i think it is safe to say you could distributed more or less along the lines of where the money is going today. everyone is the beneficiary, not just meta. i think snape, pinterest and on the margins reddit as well. lisa: the idea that reddit priced its ipo at the high end of what people were talking about, is this a good time for tiktok to ipo? is the ipo market telling companies now is your moment? brian: if you have an ai play, absolutely. i'm not in the business of talking to investors on a day-to-day basis so i don't know what they are thinking this minute, but it's safe to say there's a lot of ambiguous opportunity in terms of how they are using these environments. it could be a lot of money or maybe not.

i don't know how you get to a robust valuation unless you assume it's going to be a lot. because it's not a terribly profitable business, as we have seen. obviously you can grow a lot, but that suggests to me a willingness to look for the optimistic in the numbers. it's a sign of a healthy ipo market. that's -- jon: appreciate the thoughts. brian on reddit. this is what's happening tomorrow. bob michele of jp morgan, peter oppenheimer of goldman sachs, kneeled out of, mohammed bail -- mohammed el-eria. lisa: as we parse through what we heard about a change in the reaction function. that's the take away. there's been a shift at the fed where growth does not necessarily mean inflation and does not come in conflict of their goal. jon: that's something that's

been developing for months based on the communication from chairman powell. stocks yesterday, all-time highs of the close. the opening bell about 35 minutes away. looking for more record highs. from new york, good morning. this was bloomberg surveillance. ♪

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manus: hey i am manus cranny, and for jonathan ferro. we are still penciled in for three rate cuts. flying higher ahead of the balance. there are other stocks ahead of nvidia. countdown to the open begins now. >> everything you need to get started. this is bloomberg the open with jonathan ferro.