sonali: welcome to "bloomberg markets." i'm sonali basak. a drop in consumer sentiments and hawkish comments from fed officials keeping them in check. we have an s&p 500 still in the green. a green week for the s&p 500. pretty much flat on the day. nasdaq 100 also seeing a little bit more love read about .10%. two-year yields, a little bit of a selloff.

still below 490. up by about four or five basis points on the day. risk appetite hitting bitcoin, moving lower. under the $61,000 level. down about 2.8%. let's talk about some midday movers. yelp shares are struggling after unadjusted guidance for the full year. macro headwinds for restaurants and growing competition from delivery platforms can pressure revenue. that is according to analysts at jefferies. yelp shares down .4%. -- boosted same-store sales forecast for the full year. analyst were positive on the upgrade, highlighting improved margins and profitability as its strategy gathers pace. sweet green soaring higher than 35%. ziegler has began trading. more than 30% on the day. we will talk about them later this hour. the dallas fed president says it is too early to think about

cutting rates. i need to see some of those uncertainties resolved about the path we are headed and we need to remain flexible to policy and continued to look at data coming in and watch how financial conditions are evolving. let's bring in michael mckee to talk about these comments. when you look at logan, bowman, there is some concern about how quickly the fed can cut when you are getting voices of dissent within it. >> we are getting a range of views that all consolidated to a very narrow view. that the fed is going to not cut rates for a while. within that, you can find different people on the spectrum. mickey bowman is out probably the farthest in terms of putting it off. she says we will not be cutting rates, or she does not want to. she said i at this point have not written in any cuts. i've had an even expectation of

staying where we are for longer. that continues to be my base case. don't count on her for a vote. you can look to the others who think maybe we get to it by the end of the year. raphael bostic saying maybe one cut later this year. lori logan is looking for data as they all are. next week, we get a lot of it that could influence peoples thinking on the fed. probably more influencing people in the markets. ppi on tuesday. and jay powell speaking on tuesday. the big news of the week is the cpi report on wednesday, he will not have seen that. he will probably not say a lot different. we also get retail sales. we will see if you help at all the u.s. economy. a lot of banks think we might see an improvement in retail sales. but the forecast is not for good news. the cpi forecast on the right-hand side, we are not

expecting a big change, but we expect it to go back down again. that is going to be what the fed is looking for. at least some progress with all of these fed speakers are looking for. progress toward 2%. >> michael always brings us through what you need for the week. i feel like you targeted the hotspots. second of all, i'm helping the economy, shopping a lot these days. third of all, i don't feel like the average consumer does today. there seems to be confidence dropping off, but the inflation expectations seem to be driving yields higher. can you put perspective on it? it seems inflation is driving the decline in the michigan numbers. we have seen the drop not only in headlines, but current expectations. according to joann who runs the survey for the university of michigan, it is comments about inflation. i asked if the wars were making a difference. she said people don't mention

what is going on in the middle east that much, they don't mention russia and ukraine much anymore. somewhat surprisingly, they are not mentioning the presidential race as a reason they are discouraged. they are more worried about inflation and the fact the news media is reporting a lot about the possibility of unemployment rising. >> thank you for keeping an eye on the data. i hope you get some sleep before that week. while fed officials signal interest rates are at the peak, make of america says appetite for longer data u.s. bonds have shut up. let's discuss it with katherine doherty. bank of america knows about buying treasuries. >> that is true. this is their clients they are asking the sentiment that they are trying to get across the street. what they are finding is the bar for further rate hikes is set very high. i don't think there is much of an expectation for rate hikes.

that means everyone is expecting if there is no further rate hikes, it is triggering the dip in buying. what is also interesting is even though the survey is showing that their clients are feeling this way, this is the sentiment, the positioning does not reflect these results. i thought that was a kind of interesting comparison. the gap is the widest ever. sonali: you cover bank of america closely. this is why the banks benefiting from the great underwriting boom. i wonder if it is signaling the search for yield, bonds coming out of the sky, what do you think? >> if rates stay higher, think of it from a consumer standpoint.

if you have a cd rolling off, you might buy another one. they will give you a certain amount of yields if you want something you know reflects in the next 13 months, you will get overturned and not have much risk. you might roll over a new one. i don't know if a year ago the street would have expected we were here with the rates where they are. >> the banks still coming out with promotional offers. that is katherine doherty. thank you for making sense of it all. coming up, the hot ibo of the date zeekr goes public. the large -- this is bloomberg.

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sonali: this is "bloomberg markets" and i'm sonali basak. it is time for the stock of the hour. novavax signed a $1.2 billion licensing agreement that includes commercializing a combined covid-19 and flu shot. madison muller is here with the details. what does it bring by means of distribution for the covid shot? >> this is important for novavax. it has really struggled to get the covid shot to a lot of people. we know that pfizer and moderna have taken the majority of market share and have really captured the public attention when it comes to covert shots and the mrna covid vaccines. novavax was sort of a latecomer. they came later to the game with a protein based covid vaccine. it is a little bit different

than the mrna covid shots from pfizer and moderna. they came late, people were not as familiar with their product, struggled to take off in the same way. we know now that covid shots across the board are struggling with demand. it is something we see with pfizer and the dharna. but this is partnering with -- hopefully it will help to commercialize and get novavax's shot to a greater share of people. >> what does the future look like? it is sizable, 1.2 billion dollars. has some sticker shock. can we see more deals like this? >> it is a good question. it is interesting, what we are seeing is they are going to partner to make a covid flu combination vaccine. this is not something we are seeing with pfizer and moderna. they are trying to use the mrna

technology to make covid and flu combination vaccines as well. we are seeing more momentum in this field. it will be interesting to see if we will see more partnerships like this going forward for pfizer and biontech like during the pandemic. it is interesting to see covid play such a big role in these deals and partnerships because like we have seen, it has been an area that has seen waiting and decreasing demand for some time. it is an interesting question whether we see more partnerships like this going forward. >> madison muller, thank you for covering this story. zeek are began trading this hour. this comes just as the biden administration is poised to unveil a sweeping decision on china tariffs as soon as next week. abigail doolittle and david welch are here with the details.

the demand for the ipo has been pretty exuberant. there has been a lot of questions about how much the ipo market can hold up, how much demand are they getting? >> it seems the ipo market is healthy, especially in the light of a week ago. over subscribes, the books closed. so they raised 441 million dollars. right now, the company has a market value of $6.6 billion. if we put this into the purse act -- perspective of tesla, it is $540 billion. rivian, $9.9 billion. closer to rivian in terms of market value. this is the biggest ipo for a china-based company since 2021 and the didi debacle. a lot of positive interest. maybe it will open up the u.s. ipo market more for some other chinese companies.

although there are biden headlines that make interesting attention. the optics are not great. >> talk through some of the considerations when we are thinking about the tariffs and what the administration is planning. even though you have -- a point abigail made earlier, zeekr doesn't have great exposure to the u.s., but how does it tackle the issues we are seeing? >> the chinese ev makers have exposure, very few vehicles of any kind are exported to the united states. but the companies are what the government is worried about. chinese makers, they are making great inroads to south america and mexico right now. they can build ev's in mexico and explore them here, or export them in china. they have a huge cost advantage because the supply chain for ev batteries and all of those things is much more mature in

china. a great cost advantage, even though tesla in a lot of cases, and they sell these cheaper vehicles that not only impact general motors, but think about mercedes, bmw, toyota, honda, hyundai plants, a lot of jobs at stake. the government will want to wall it off as much as they can to buy time for those companies. particularly ford and gm, to catch up in the ev costs burden that they have so they can be competitive. >> what is the cost differential? you look at the ipo today, tremendous investor demand. whether from the united states or other investors for the ipo listed in the u.s., and you have to wonder whether investors are picking up on that differential. >> most ev's in the u.s. sell to consumers for at least $45,000,

usually well north of that. chinese are selling them $10,000, $20,000. general motors has a partner that has when that sells for $10,000. it is a tiny vehicle. some the -- some of the vehicles priced cheaply for u.s. consumers, and may or may not pass u.s. safety rules. they still have a multi-talent -- thousand dollar cost advantage when it comes to ev drive components. in this hemisphere, that is all being developed as part of the inflation reduction act to meet requirements to get the tax benefits for consumers. it is going to take a few years to build that out. in the meantime, the government doesn't want chinese ev's so you are undercutting everything they are trying to do. sonali: how do we think about this moving forward? you were talking about ipos broadening in terms of scope. are we seeing enough breadth in

the market to be able to chomp on new stock? >> i think we do have the sign that in terms of this being oversubscribed and the strength for viking that there is -- there has been so much reticence around ipo market and capital markets. we had big ones last year that did ok, but not wonderfully. i think investors are going to look for these signs. some of the other china ev makers are trading with the biden headlines. they are down. whereas we have zeekr soaring at this point, 27%. that is an interesting bifurcation for me. also interesting, a spin out from geely. the company has 32 billion dollars. it is a big deal that signals that could be not just an opening of the ipo markets for u.s. companies and investors, but also possibly chinese based companies. >> even with the issues with the biden administration, viking even with a tough week of

trading is above its ipo price. what is interesting here, a chinese based company listing in the united states. what does it say about investor demand for ev's at a time where we have been talking so much about the difficulties in that industry? >> it is a little bit overblown honestly. it is not growing at 50% or 80% like a couple of years ago, but still 5%, 10%, 15% in the u.s.. all of the chinese automakers, there are plenty of growth for them to get in the chinese market in southeast asia, south america and mexico. in europe for that matter. u.s. ev makers are not really capitalizing on it just yet. even some of their competitors are not really up to speed. if you are looking for a growth story, chinese ev makers have a leg up in terms of developing

vehicles and batteries that the other established competitors are not ready to take advantage of it. wherever they want to go outside of the u.s., not creating any growth anyway, good but not great. there are plenty of vehicles to be sold and consumers to be found. i can see why investors would grab onto this as the next big ev growth story. sonali: abigail doolittle and david welch, thank you for making a sense of this story. the next hour, zeekr's cfo will be talking to us. this is the largest chinese ipo in the u.s. in years. looking forward to that conversation. stick with us for the wall street beat next. this is bloomberg.

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sonali: this is "bloomberg markets." i'm sonali basak.

jim simons, the founder of renaissance technologies, has died at the age of 86. that is according to a statement published by the simons foundation. it is considered a pioneer of quantitative investing and his technique was so successful, he became known as the quant king. let's discuss it with kathy burton, who has covered much of his legacy. tell us more about what people are saying, what he's most remembered for. >> he is a pretty interesting character. not only was he an amazing hedge fund manager, and no one could ever figure out how he made so much money. also, he was a great mathematician and a great philanthropist as well. sonali: speak about his philanthropy. people speaking about renaissance, and we can talk more about it, it was well known he was hiring people that were not your typical wall street bent. what about his philanthropy?

>> he had a large foundation and helped fund other foundations for his family, for his children. he gave a lot of money to education to mathematics in particular. a mathematics program to teach mathematics in grade schools. also autism was something he give a lot of money to. >> and he talked for her while as well. >> he was head of the stony brook mathematics department and really brought it up to be a major mathematics department in the world. sonali: set up rentech for those who don't know what it was in the money management fund. >> a quantitative fund that uses computer models to trade. it was really the first quantitative hedge fund. it was also incredibly successful. it had one losing year in its

second year of operation. after that, it annualized at about 40% a year. that continued as more competitors came into the market and it was cheaper to use computers, so people had more computer power. yet he was able to always be all his peers. sonali: i believe he was one of the earlier ones to close off the fund to investors. >> absolutely, he realized you could not -- not make the returns if you had a lot of money. it was too much of a burden. so he cap did at about $10 billion. itb would fluctuate, but $10 billion was about the level. >> he did not have a traditional way into finance. he was a code breaker for the government. >> that his job, a job that allowed him that allowed him to work for the government. then he got fired from that job writing a letter against the vietnam war. and he started out at stony

brook. then he was interested in trading. sonali: thank you for your time. kathy burns speaking on jim simons, the investor behind renaissance technologies. he died at 86 years old in new york city according to his charitable foundation. taking a quick check on the markets before we head into carley gardner a very busy week. -- head into a very busy week. a market holding onto gainsaid a bond market losing steam. that is it for "bloomberg markets." a lot of markets ahead and more coverage of the late jim simons, who was a legend in markets. this is bloomberg. ♪

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