Grown diamonds and what is next for debeers as it faces a potential spinoff. I matt miller on this monday here in new york city, welcome to Bloomberg Markets to kick off the week. Irans president has been killed in a helicopter crash. The foreign minister also died in the accident. Iran has entered five days of mourning and an election will take place in the next 50 days. Bobby joins us with more details. I guess the most important question is how did this happen, who was involved . Bobby we do not know anything to suggest this was not an accident. This was a three helicopter convoy flying from the northwest of the country. Its a mountainous part of the country. There was bad weather, fog and rain. Remember iran has been under economic sanctions now for decades but they have not had the access to parts of technologies. Theyve not been able to buy so this is a very old craft in quite treacherous weather. There is no indication to select or suggest foul play was involved. This is a part of the world with a lot of people in different groups of people wouldve liked to have seen president Ebrahim Raisi dead. Of course this does not mean the death it doesnt mean some liberal new leader will come in and they will get along great with israel, tensions in the middle east will die down. It could get worse but most likely you were saying earlier we will retain the status quo. Although he is called the president he was not really the man in charge. That would be the Supreme Leader. He pulls all the strings and controls everything. He is the guy who pretty much handpicked raisi to be president and there was a good chance he would be his successor when the Supreme Leader passed on. The Supreme Leader is still there. He will try and stage manager was behindthescenes to make sure the next president is also someone who conforms with his hardline worldview. He is the guy who calls the policy shots. Who decides israel is the country that will be regarded as irans enemy. He is the one who has so i dont expect any change in policy. Certainly not in foreign policies. In 50 days there will be a new election in iran and iranian elections are not really free and fair but they do throw up some interesting the open some windows into iranian political life and we are looking carefully to see if there any fissures or gaps between the Supreme Leader and the rest of the regime. My bet is none. Thank you for joining us. Bobby talking to us about the death of Ebrahim Raisi in a helicopter accident. Joining us to discuss, Rbc Capital Markets head of derivatives strategy. Thank you for joining us on set. Lets talk about the records. We continue to reach new records not only in the u. S. Stock market. Last week was great for largecap. But overseas as well in stocks and in commodities we see new record prices for copper and gold. What you make of this seeming everything rally . Weve been watching this very closely in the Derivatives Market and the one thing we are not seeing is the same sentiment being echoed in options. In the past when we reach this cycle you also saw that in exuberance and this time we just simply do not see it. Thats interesting because it is a reflection for past cycles. Why do you think its not being reflected. I think one really simple point is just a lot of people are more along weve talked about last summer people had to dip their towel in the water with these call options. Theyve jumped in the pool so to speak so when you have positioning thats a little bit more long theres not as much of this need to participate and we are all holding our breath with nvidia coming up but we dont see that chase that weve seen in past quarters really even move the market further up the last few times. We are seeing more brats obviously last year was all about the magnificent seven and stocks like nvidia, the other giant Cap Tech Companies led everything. Runs up and profitability. Are you seeing more of a spread out of sort of long bets or positivity in the options market. We also do not see that in the sense we do not see that demanded Something Like but thats not to say the downside is rising its just that we dont see the upside being managed the way it has in the past. The other thing i would say thats interesting is if tech goes the market still goes so we have this Healthy Breath of the market where we get poorer than expectations proof from nvidia you Better Believe that concentration will come rushing back. The frenzy that we saw last week and a couple of years ago dominated by options trade as well. What you see this time around . It was sort of like a storm in a teakettle in the sense you saw the same indications but they all kind of dissolved more rapidly. And then you did not see the level of exuberance get nearly as high so its interesting to me we had probably 400 or 500 implied volatility levels. Thats a 50 to 60 magnitude move. We didnt see gmc get to those levels for an options perspective although we saw that demand. The velocity down was much quicker than during the actual original frenzy. Really subdued exuberance in the options space it doesnt its not naturally seen in the equity indexes or the metals on commodities. Could nvidia earnings change all of that . Isnt there potential for wednesday after the bell to move the markets . Our strategist did a poll of by side clients saying what are your expectations. It is still overwhelmingly positive. The fact we do not see that echoed in the Derivatives Market is perhaps an opportunity. One thing that happens is you see spot up and volatility up but when you see that come up fast it takes volatility along for the ride so Something Like nasdaq calls are little bit underpriced if we believe there could be this Inflection Point to the upside. Is anyone guarding against the potential on the downside . Is anybody out there hedging. It seems a guy would be the cheapest time to put on protection. Protection is laughably inexpensive. I was listening to you guys speak about the geopolitical news out of a ran in saudi arabia we have seen these geopolitical risks bubbling. Absolutely not. Geo bullock risk hasnt been affected all when you look at Russia Ukraine what is now two years old. The war in israel and palestine or in gaza when you look at whats going on in iran, nothing is happening in terms of market responses. Amy when i push chief risk officers on this, what they say is the last two times we put on this protection all thats happened is that protection is gone away. Whats to say this time will be different. That always makes me thanks he but they are not wrong in the postcovid war these geopolitical risks have not taken the market with them so its harder to deploy those hedges. What about the political side of the equation . Election coming up in november. Republicans may be touting their own book saying the reason weve seen this runup is everyones optimistic crumple win this election. Its really interesting this is something i worked closely on with our chief equity strategist on. When you see past election cycles is you get this runup in the market in particular to Something Like financials or cyclicals. I think the unknown here is whether we will have an election its clear cut the end. We could get a situation like 2000 where its not clear cut thats something that could take thats not being priced in either of the structure or the s p markets now. Thank you for joining us. Quick programming note we will have an exclusive interview with the cleveland fed president today at 2 00 p. M. New york time. You definitely need to tune into that. Lets look at whats moving markets right now in terms of stocks. We go to bailey. Want to start with norwegian cruise boosting their expectations for the full year driven by bookings and overwhelming demand the Company Received shares rallying a higher as we see more than 5 leading the rallies and the likes of Royal Caribbean and carnival as well as the newly Public Company viking. It seems like people are going back to taking cruises. Wanting to keep in mind that the companies have broadly benefited in the market so far this year and thats one of the issues holding back the company. Always interesting to look at. I saw a story i thought was interesting today. Hymns, which makes a reptile erectile problem pills and stuff to grow your hair will also give you a wegovy like shot to lose weight. Bailey a discount to the actual won by 85 so this is another potential drive on the forehand. Keeping an eye on that 40 level. The stock trading at a three year high which continues to build out their portfolio. We seen a number of companies try to lean into the weightloss trend and we saw that with the likes of weight watchers. They are breadandbutter being erectile dysfunction pills, discreet packaging that have that has been how they cater to a younger audience but giving that shot at an 85 discount will not only help outpatients but expand their ability to grow market share. Matt a stock, lee auto. Bailey missing expectations in the quarter talking about how their deliveries were well below what wall street was looking for. Trading at a more than one year low continuing to see matters in the ev space, the car space struggling not only here in the u. S. But especially over in china. Its interesting looking car that really fell short of what analysts were looking for in continuing to see issues with profits and their margins and the ability to grow delivery so maybe one lesserknown name to keep our eyes on this week. And especially keeping an eye on those ev makers. Matt to me it looks a good dodge durango. I dont know if that was that but it looks like an extended previous a look sick they slapped on a back row. Matt bailey, thank you so much for joining us. Bailey lipschultz talking about a couple of the stocks moving in the markets just about 40 minutes into the session. Headlines in the leverage loan market we are they were dominated by private credit but they flipped as syndicated loans make a comeback. We will speak to kramer 11 the tollison frankel partner next. This is bloomberg. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Matt lesters leverage loan headlines were dominated by private credit taking a lot of market share from syndicated loans which has been up until then the only game in town. This year the trend has reversed. Syndicate loans making a comeback in the leverage loan market. Here to discuss is someone who works on both kinds of deals. Richard farley in his role as partner advises banks and private clients on syndicated financing transactions and direct lending so its great to get someone with your knowledge and experience here. What do you think. Is it fair to say the syndicated loans are making a comeback because private credit was everything in 2020. Both sides of the fence of never really gone away and the rise of private credit has been sort of driven over the past decade by the regulatory changes and the regulated banks being subject to more scrutiny and there are differences in execution. If you are in the private credit space youve got a fixed rate at the time you sign your commitment letter. You dont have to get a rating. You also do not get the benefit of any market improvement between the time you sign your commitment and when the deal comes to market. And in times like these where the banks are more active there has historically been a more favorable Interest Rate attainable in the syndicated market. Thats all changing and i think the sort of clearcut lines between the market in the syndicated market might blur over time as each finds a way to work with the other. You may get a better rate with the syndicated loan, but you may not be able to get that kind of loan . Banks have a look at so many risk concerns so thats why private credit has been easier if more expensive. A segment of the market you get to an elevated leverage level of six or seven or higher times. Theres clearly a situation of the banks can play but what weve seen now is competition between the two products and the private Equity Community in particular has arbitrage them against each other from areas where they can get better execution depending upon the deal and the market. Matt if we get higher Capital Requirements out of basel three. Does that make any of it harder for the banks or syndicated loans, does it make it easier for private credit . I think you will see a consolidation of those institutions that can afford to reserve the capitol at higher rates to play in the more risky segments of the market. I think you will see fewer competitors. It doesnt mean it will be less competitive or have an impact on rates but again you would think if you were not large enough to absorb that you would not be as competitive compared to say a jp morgan or citigroup. You advise clients on multibillion dollar deals so you get the inside track on a lot of their views. Do you think the fed will be able to cut rates this year. Does it make sense to you with inflation still at 3. 5 percent be able to take it down . I think everyone was optimistic there would be three or four cuts at the beginning of the year. Thats now looking completely off the table and we are looking at one or zero. And my feeling is sort of in line with that. I would not be surprised if there was no cut this year. In Company Cases in individual cases when you look at the big picture federal deficit does it make sense you would be able to hold rates this high and certainly make servicing pretty expensive. At some point our status as the reserve currency of the world will run out in terms of the ability to use that privilege. That will be the breaking point when the servicing of the federal Government Debt gets so high that it crowds out other competitors. We are not seeing that. I think what we are seeing is the opposite. We are seeing too much capital in some respects to the asset class which will result in consolidation and instead of seeing literally scores of onestop shops that serves all industries i think you will see a consolidation of those. Blackstone and apollo, those folks will be successful. And then you will have niche plays that have sophisticated robust industry expertise in different areas and shopping at break while capital in terms of the energy space, Hercules Capital enterprise and Software Space and places that play in complex Capital Structures in the middle market. Thats always going to be in place for where the private credit will have an advantage. Shops like a. S. Birch grove. I think you will see that segmentation and consolidation and that will be the response. After the popularity of last year do you still see capital flowing into these private credit funds. You mention some of the big players a lot of them of turn from private equity to private credit. Do you still see the popularity of that . When you are now at a baseline rate in the five handle, the asset class is very competitive. If you have the combination of low growth and lowering Interest Rates i think you will see a migration out of that sort of risk into other asset classes. But until then i think the party is on. Matt thank you so much for joining us. Richard farley there talking to us about the leverage loan market and rates. We will take a look at the Companies Making the most social buzz today. Social climbers is next, this is bloomberg. So, what are you thinking . Im thinking. speaking to self about our honeymoon. What about africa . Safari . Hot air balloon ride . Swim with elephants . Wait, can we afford a safari . Great question. Like everything, it takes a little planning. Or, put the money towards a downpayment. On a ranch. In montana. With horses lets take a look at those scenarios. J. P. Morgan Wealth Management has advisors in chase branches and tools, like wealth plan to keep you on track. When youre planning for it all. The answer is j. P. Morgan Wealth Management. Matt time for social climbers, a look at the stocks making waves on social media. First up red lobster floundering , the Seafood Restaurant chain filing for chapter 11 bankruptcy thanks in part to a disastrous allyoucaneat shrimp promotion. The Company Changed its 20 ultimate endless shrimp deal from a limited time offer to a permanent promotion and thats a move the cost the company 11 million as diners scarfed down expensive plates of shrimp at a rapid pace. A big win for airbus, the u. K. Plane maker the european plane maker secured an order for over 100 narrow body jets, saudi arabias flagship carrier. The deal is the largest in saudi arabias history. If the kingdoms latest effort to turn the country in to an aviation and tourism hub. Grayscale announcing the ceo has stepped down after 10 years. Hell be succeeded by Peter Mintzberg in august. At his peak the Grayscale Trust had over 40 billion in assets under management recently however the fund has been going through challenging times as investors pull out billions of dollars after it was converted into an etf fund in january. You can follow all the latest company buzz on tre and tren go after the record highs that we hit on fridays trade the s p at 5320 so still at an alltime high the same is true for the nasdaq 100. The u. S. Two year yield right now for 83. 4. 84. That yield curve is inverted. Coming up, the diamond industry is less than dazzling these days. We speak to the founder and ceo of angara. This is bloomberg. Lifes daily battles are not meant to be fought alone. Were not powerless. So long as we dont lose sight of whats important. Dont be afraid to seize that moment to talk to your friends. Cloud, you okay . Because checking in on a friend can create a safe space. The first step on our new journey. You coming . Reach out to a friend about their mental health. Seize the awkward. Its totally worth it. Matt under pressure, already wrestling with falling prices, geo dickel tension, Lab Grown Diamonds, now anglo americans parting ways with the iconic debeers business. Here to talk about the implications is the founder and ceo of the online jeweler on gara. Thank you for coming in. What a fascinating industry. Ive been following debeers for years now, but i feel like the whole picture is hard to see. Who controls the global diamond market . Debeers use too. They had 85 of the market share , monopoly, now they have about 30 market share. Al rosa out of russia has a large part, with other Mining Companies out there. Matt when you talk about market share, youre only talking about diamonds mined from the earth and cut, but Lab Grown Diamonds have been an incredible phenomenon. How much market share do they have on the overall picture . Ankur interestingly, in the u. S. This quarter half of half of Engagement Rings have labradoodle centers. Lab grown centers. They legitimized it and its become an explosion. Partly due to price. They are 90 cheaper than the natural equivalent. Matt and if i brought you two two caret rings, one was lab grown and the other was mined, would you be able to tell the difference . Ankur no jeweler can, they are chemically, physically, optically identical. Only laboratories can. One has small traces of nitrogen, the other does not. To the naked eye, theres no way to tell the difference. Matt whats the sales pitch for a real diamond, then . I would i pay 10 times for something that cant be told apart from the lab grown . Ankur its tough. Thats why market share is changing the way that it is. In the next five years, 80 will be lab grown. If you are harry winston, tiffany, that end of the market will still go with natural, because the brand is super important. Matt well, as far as they know, right . Could be lab grown parading as a mind diamond. Ankur its a difficult proposition, going forward. There are structural issues. When i think of debeers today, i think of kodak, where the industry has changed dramatically and is coming back. Matt what is this move from anglo american, what does it mean to you . Does it really change the structure of how these things are mined and shipped and sold . Ankur historically, what debeers has done is they have customers called site holders and they have to buy from them. 10 times a year they will say this is your parcel, they cut and polish it, it goes wholesale into the market. That structure may very well remain. The problem im seeing is debeers itself went from an operating profit of 550 million in 2022 to 315 million in 2023 and this year will be even lower. Revenue for debeers was 6 billion on the core Mining Operation this year. Went down to 3. 6 and 23. A 40 drop. In a high fixed costs of business, that becomes the difficult in this year will be even tougher. Historically they been a proponent for marketing behind natural diamonds but they are no longer able to do that. Monopoly power is gone and the core economics of the business are very difficult now. Matt what else in the supply chain has changed the story . Lab grown diamonds have been the big whammy, right . You mentioned russia as a big supplier and that cant be helpful, considering sanctions. Ankur sanctions in the u. S. , you can no longer import russian diamonds. We stopped we got 1. 5 years ago as a company. What has happened is a lot of them are going to china, the middle east, india. The supply chain has changed a little bit. Debeers in the u. S. , others to the eastern market. Matt you still imagine i a get you still get, i imagine, russian diamonds from india and china. Theres no way to tell if you purchase from dubai. Ankur there are disclosures at the source. In bombay they will disclose that its a russian diamond. So, that has structurally changed. The other structural change is a huge migration towards colored gemstones. 30 of brides that they would prefer a colored gemstone. Matt meeting what . A colored diamond . Rubies, sapphires . Ankur both. Tans and night, these alternatives, they are growing quickly. At the same time that asset vices have all invite 35 to 40 , colored stones are booming, going up 10 to 14 over the last four years. Earls have gone up 35 to 40 and on. Colored gemstones used to be 35 of Engagement Rings. As a result, diamonds, natural diamonds, use to be 90 of all Engagement Rings in the u. S. , now its only one third. Lab grown is 50 . Color is 50 . You are left with 15 . So you are left with less than 35 . Structural changes, consumer preferences, and pricing, all playing themselves out right now. Matt diamonds are forever, this romantic idea of that is what you have to have to seal the deal is no longer the case. Ankur thats right. Colorless and flawless was what everyone strove towards. Two caret, three caret was the optimal size people dreamt of. Thats no longer the case. Diamonds used to be financial flex. You could show it off. With lab grown 90 cheaper, its much tougher. 25 thousand dollars natural, 2500 lab. That part of the equation is gone. There used to be an inflation edge, a security blanket, but thats gone now. The use case for natural diamonds is going away. Matt to say nothing at all about the morality of the natural diamond, right, dont have to deal with that conundrum. Very interesting stuff, thank you so much for joining us, ankur, talking to us about the diamond industry. Lets get a check now on the markets. For that we go over to abigail doolittle. Abigail a gay and a gain for the s p 500, on the open you can see this nice boost heading to the possibility of a record close. Bigger gains are in areas like the nasdaq 100 up sick sense of 1 , boosted by chips. Take a look at this, up 1. 7 . Nvidia, one of the key events of the last hour, earnings came out wednesday evening, helping that ship index go higher. Silver is up for a fifth day in a row and thats the longest winning streak since the middle of april when it was up 13 days in a row. Everyone after this gold rally once silver, up 1. 7 . Speaking of gold, it has hit a record high. Lets look at the bloomberg terminal chart. Over the last this is year to date, for the early part of scuffling along, the consolidation was used to build up a big move higher and one question could be that this isnt dissimilar from the pattern in stocks right now, will it turn into a double top . If so, its not a strong pattern , telling you that the buyers have more conviction than they had and who knows, we could keep seeing gold go up, up, and away. Seems like the perfect inflation hedge if the fed were to get a bit dovish. Turning to stocks and the outsize movers that we have matching what we have for gold and silver, nvidia, there we have it, one firm out today talking about raising their price target and expecting the data center to be strong for those revenues on wednesday. Norwegian news lines, best day since february of this year, they preannounced to the upside that it was the second time this month after reporting, it could have been on top of their quarter, the stock really responding well. 7. 8 bearish interest on the year, some of the metrics not as positive relative to the others, boosting to 1. 42, bringing viking this is really impressive, it just went public a few weeks ago, up 4. 6 . Since the ipo, up 25 . The ceo says that liking distinguishes itself as the thinking mans cruise line, not the drinking man. Matt or woman, or woman. I like lindblad. If you are looking at a cruise, never been on of the big ones, they do some really interesting smaller boat trips i highly recommend. Abigail doolittle there, talking to us about the markets, moving stocks and precious metals. Coming up, we are joined by the senior chairman osullivan cromwell to discuss growing concerns that banks have over the basel three endgame. How costly will it be . This is bloombergs. This is bloomberg. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Abigail you are looking at a live shot of the principal room. Coming, exclusive interview with the cleveland fed president at 2 p. M. Eastern. This is bloomberg. Matt time now for our daily wall street conversation. Today we are taking a look at the current state of real estate and the potential need or more bank reserves. We are joined by roche, and, raj and david. David thank you for talking with us. We always talk about you as the dean of bank regulation. For those have us who only sometimes follow this, remind us what the reserves are related to basel three, how much is required by . Raj so, to put it mildly, this is an extraordinary complex issue. Its the global account to establish Capital Requirements. At this point, the u. S. Is the one country that has not yet adopted as the basel what is referred to as the basel three endgame. So, what do the u. S. Proposed rules require . Cutting to the bottom line, the Federal Reserve estimates that the capital levels of the banks subject to this rule would increase by about 16 . Trade associations estimate 20 . Both of those are averages. So, inevitably there will be banks with more than that 16 or 20 . So, it is a really big deal, that type of capital increase. Matt i wonder about the people involved in this decision, rodgin. Last year i heard that jamie dimon was warning other bank ceos not to talk to michael about michael barr, but others on the board. Barons of the wall street journal, mark gruenberg, staying on as an important decider of which capital rules go into action. Who are the most important people we should be watching . Rodgin the effort is being led by the Federal Reserve. They are going to want to get the other two government agencies, the Prudential Bank regulators, involved. The fbi see and the occ fbi see and occ fdic and occ. Jamie dimon bus efforts have been echoed by inserted efforts from the regulatory agencies in the halls of congress, the media, and with the administration. David and all of those comments are having an effect. We heard from the vice chair now that we should expect a substantive revisions to the proposals. What do you expect to come out . Rodgin so, i agree that there will be substantial revisions and that those will be in the Component Parts and therefore in the overall outcome. The agencies have a real dilemma, here. Number one, they cant simply adopt a final rule. That is susceptible to legal challenge because significant changes typically were ira new proposal, not just adoption. Or they can repropose, but that would require substantial time, probably delays of a final rule until 2025. If i were a betting person, i would take the latter reproposal, i think the changes will be so significant. But it is probably not much more than a coin flip it matt its so interesting, we have 4000, 5000 banks in the u. S. And most of the assets are consolidated. I think that 4 5 of all of the assets are consolidated, the big wall street banks. If we get higher Capital Requirements, does that force a broadening out of those assets . As jamie dimon has said, his nonbank editors will be dancing in the streets, but what about the smaller Bank Competitors . Rodgin i dont think that the smaller Bank Competitors will really have the capacity to significantly increase their lending. But i fully agree with jamie dimons you take a chance whenever you disagree with him, he is so often right there will be a migration to the nonbank lenders who have no Capital Requirements at all as a regulatory matter. David since we have you, one last question, on the regulatory landscape, whats out there when it comes to banks . Rodgin let me mention two. One, theres a longterm debt proposal that would be particularly difficult for the socalled category three and category or banks, those with the 700 billion in assets. That would be a real earnings leader. The second is the overall supervisory situation. There has been very little recognition of what the Federal Reserve said the week before last in its semiannual review of the state of the banking industry. Particularly, the pertinent comment is that two thirds of the banks with 100 billion or more in assets, half of the asset pool of the banking system, they have unsatisfactory ratings in at least one of the three component pieces. I think that that has got to be an alltime high, septa maybe in 2008, 2009. Matt fascinating stuff, thank you for joining us, rodgin cohen. David, whats coming up . David paul krugman, we will talk to him about the state of fiscal play in the United States and why he thinks there should be a second shock coming out of china. Paul krugman. Matt david westin, think you very much for joining us. This is bloomberg. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan Wealth Management. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Matt jp this morning lifting the forecast for the Net Interest Income it expects to generate this year as the bank holds its annual yesterday. Sonali basak joins us with details. A lot coming out of this. Theres a top live chat ive been following this morning. Sonali they put in line every executive next up we hear from the Investment Banking executives, where we know there have been a lot of changes in management. Before we got to that, we know that they are increasing net income, expecting to bring in 91 billion in Net Interest Income. They had expected 90 billion previously. They lifted their expense guidance slightly as well. They guided a lot towards the idea of increasing buybacks as well. They cautioned investors of course that right now this is a good use of capital but for jp morgan it could always change. Of orascom a we know that investors like the capital return story when it comes to jp morgan given that they have a more on their Balance Sheet than many of the banks out there with the ability to use that firepower for capital return as well. Matt normally when we talk about basel three, my eyes glaze over, but it is interesting because diamond has been leading the charge to tamp down Capital Requirements and we just heard from roche, and about the basel three endgame, we heard about it a lot lately from michael barr, to. What are they saying on the call . Sonali the most important part came from marianne lake, where she said that if you look to the future, the rules are so stringent, the nuance of the other rules being brought forward by congress, the free Checking Account idea might only be left to the affluent americans of the future. It might be a lot harder in the future orting to jp morgan, for executives to get access to financial services. Matt by the way, Checking Accounts . Are you writing checks . What year is it . Sonali you still need the account, though with Savings Rates where they are, maybe you should be in a savings account instead. But to your point, yes, the accounts are still very important and are where the most transactional types of services happen. In the past they spoke a lot about how hedging could be more difficult for farmers and other types of people who matter to the real economy. So, they are fighting that i and other banks are fighting it even more also. There is a rule out there in the current set where you can have a lot more stringent rules around pastdue accounts as well and how they treated as delinquent or not delinquent. The average american could face some severe constraints with the rule is there now. Matt and as americans, we want free checking we want to be able to draft without a penalty we want jp morgan to buy us lunch as well, right . [laughter] sonali yes, yes, yes, i cant really argue with that, matt. Matt sonali basak, thank you. Some of the stocks hitting highs this morning after we hit records on the indexes on friday, jp morgan itself hit a 52week high earlier in the session as they held their annual investment day. Google hitting a high since they turned lower, alphabet shares up, the tech giant planning to spend over 1 billion to build out their main data facility in finland because of the easy access to green energy there. Coming up later today, exclusive interviews with dell, nvidia, live in las vegas at 2 p. M. Eastern town eastern time. That does it for Bloomberg Markets. Im matt miller in fort katie greifeld. It was her birthday. This is bloomberg. When people come, they say theyve tried lots of diets, nothings worked or theyve lost the same 10, 20, 50 pounds over and over again. They need a real solution. Ive always fought with 510 pounds all the time. Eating all these Different Things and nothings ever working. Ive done the diets, all the diets. Before golo, i was barely eating but the weight wasnt going anywhere. The secret to losing weight and keeping it off is managing insulin and glucose. Golo takes a systematic approach to eating that focuses on optimizing insulin levels. We tackle the cause of weight gain, not just the symptom. When you have good metabolic health, weight loss is easy. I always thought it would be so difficult to lose weight, but with golo, it wasnt. The weight just fell off. I have people come up to me all the time and ask me, does it really work . And all i have to say is, here i am. It works. My advice for everyone is to go with golo. It will release your fat and it will release you. This is Bloomberg Technology , with Caroline Hyde and ed ludlow. Caroline im Caroline Hyde in new york at the bird world headquarters. Ed im ed ludlow, live from Dell Technology world in las vegas, this is Bloomberg Technology. Caroline we will have full coverage from ed as