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♪ scarlet: welcome to “bloomberg markets.” i’m scarlet fu. but show you what’s happening across the financial markets. we see the dow industrials at session highs. technology is giving up some of its earlier losses. s&p 500 is no little changed, although you still see the nasdaq 100 losing .6%. questions remain over the sustainability of the pace of ai spending. the next big catalyst for the ai trade is nvidia’s results next wednesday. looking at some declines in bitcoin, off by two percent. the cryptocurrency has struggled to regain momentum after the

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selloff in early october. oil prices are moving higher, nymex screwed up 1.7% on the day. let’s go back to equities and check in with norah mulinda. >> i have my eyes on nvidia. reversing its course after notching its biggest jump since april yesterday. we are seeing weakness because softbank is selling its $5.8 billion stake in the company with hopes to go all in on openai. you are seeing some weakness in nvidia shares as concerned about a potential ai bubble in the market continue to percolate. coreweave also in focus. shares lower by about 13, 14% in trading. this after reporting third-quarter results. they did flag some expectation for a data center delay, could impact its fourth-quarter results. traders selling off right now in the trade right now.

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let’s wrap things up in the consumer space. maple bear, the parent company of instacart. people are enjoying convenience as it pertains to grocery deliveries. we see shares up about 6% off of a rosy outlook that the company provided. they see an upbeat outlook on grocery delivery orders. we are seeing shares in the green right now as we speak. scarlet: thank you so much, norah mulinda. let’s turn to private markets and coverage of those markets. morgan stanley has launched a dedicated research product that covers private companies with a research portal going live today. it features private reports, a series that focuses on d.c. activity. this comes as competitors have launched similar products. for more, we are joined by morgan stanley’s global director

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of research, katy huberty. it turns out you been publishing reports on private companies since 2017. what has been the feedback from clients, how did that change how you are expanding your coverage today? katy: morgan stanley’s strategy is straightforward. we help our integrated firms raise, manage, allocate capital. we do that across the entire lifecycle of corporates. as you said, we have been publishing on private companies since 2017, but since then, the number of unicorns, private companies worth over a billion dollars, has increased by five x. it is critical for our teams to cover both the private companies and the public companies particularly alongside the big themes that we see driving alpha in the market. scarlet: you have star analysts well known for cover and tesla, now covering companies that

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embed robots and machines. are you going to be hiring more people or just moving people from the public markets coverage to private? katy: our approach is a little bit different from our competitors. we believe the existing sector analysts, the domain experts, are the right thought leaders to cover both private and public companies. we are investing to expand capacity within those teams, both human capital and efficiency tools, so they can go broader and deeper into private markets. another vector, as you pointed out, we really dominate in thematic research. we have four key themes that we highlight for investors where we believe the majority of alpha will happen in the market. longevity, tech diffusion, investing in multipolar, and future of energy. when we see a mega theme, particularly where there is a

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lot of private company formation, we have pivoted some of our best analysts to go deep on those themes. adam jonas is a good example. stephen byrd is the leading voice on powering ai. the third vector of investment is our conferences, events. we are scaling the number of private companies at our conferences. think financials, health care, technology. but we do is we bring together the innovators, investors, the analysts that uncover unique insights. we are differentiated and we are investing both in the sector depth, the medical research, and the conferences and events. scarlet: there are already publicly traded companies that invest in these private assets like private credit, business development companies, which have actually underperformed the s&p this year. i think about how black rock, tcb capital marked the private

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debt it led to a homebuilder. there were only three analysts with ratings on the company. will you be covering these company as part of your expanded coverage? katy: we don’t at this point. the four big themes that i outlined, that tends to be the majority of where we focus. increasingly, the front line of innovation is private markets. this is where we see the most alpha generation. the analyst – whether it is energy or defense, multipolar world, robotics around ai, energy storage in power – that tends to be where we are spending a lot of our time and resources, where we see significant value appreciation. scarlet: i appreciate the broad themes because there is a lot of people don’t understand,

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appreciate about how broad and how long of a tale of these industries and themes have. we know when it comes to private markets, there are no public financials, limited public financials. how granular will the analysis get? you don’t have the numbers that you can apply the way that you do to public companies. you cannot arrive at a valuation in the same way. katy: when we publish on single companies, at this point, we don’t have formal forecasts, ratings, price targets. but we do believe some of these privates will eventually tap public market equity. as an investor, wouldn’t you want and analyst who has covered that private for years, really understands the model, the roadmap, management team, and as these companies get closer to being public entities, we will then transition to having ratings and forecasts. scarlet: can you give me a sense

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of the parameters you are using for specific private companies that you would provide coverage on? how do you determine which start, which unicorns to cover or not cover? katy: we really lean on our sector analysts. they had manage through multiple market cycles. they bring significant domain knowledge to the table, so we really lean on those analysts. if you look at ember private company coverage, this year we published 65 reports. that ranges from going deep, mapping a private company in an industry or theme, single company deep dives. last week, we published in defense and robotics. it really comes down to whatever sector analysts are seeing on the ground and where they see potential growth, disruption, long-term value. scarlet: weaving into the

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experts to make the call. good stuff. morgan stanley global director of research, katy huberty, thank you. we’re going back to the public markets. coreweave cutting its forecast after a data center plan sends shares sliding. we will take a look at this glitch in this particular growth story. this is bloomberg. this is bloomberg. ♪ ♪♪ ♪♪ ♪♪

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scarlet: this is “bloomberg markets.” i’m scarlet fu. time for the stock of the hour. we are watching shares of coreweave tumbling after the company lowered its annual forecast due to a delay in fulfilling a customer contract. the ceo’s book on bloomberg tech talk about the report and the forecast. >> occasionally, you hit a bump

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in the road. but we are talking about here is a contract that gets pushed back by one quarter, let’s say. the impact of that on our revenue is a delay of revenue, not a loss of revenue. i think that is the definition of working with an ecosystem of good partners. scarlet: let’s bring in caroline hyde who just spoke with michael intrator. he wouldn’t disclose which customer it was, but when i think about coreweave, especially when it first ipo’d, it was time to nvidia and microsoft. caroline: they have been trying to say that they have expanded the customer base. he wouldn’t name which customer has been impacted, but the customers have had some thoughts ability. they are sticking with the contract. they are frustrated but they are

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pushing back the date that they can use the data center. the revenue missed in the fourth quarter just gets pushed forward by one quarter, the thinking from michael. the issue now is he is trying to tell the market that we have diversity when it comes to people building our data centers. we also have a myriad of partners that were used to get these things up and running. they used to build these big computer warehouses, get all the gpu’s from nvidia. now they have to scale that out to servicing ai and there is not enough supply out there. this is a supply issue rather than a demand issue, which everyone has been worrying about. scarlet: sounds like it is still a good news story, struggling to keep up with all of this demand for ai. caroline: that is some of the frustration coming from leadership. we are trying to do as much as we can and ultimately they are worried about competition. the demand is so huge.

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there is anxiety out there. whether you are thinking about a potential bubble or supply chain headaches, whether it is rare earth metals coming from china that you need for the future of chips, the ability to source gpu is, getting the power you need to my getting the signoff from the government. michael intrator said government can be helpful in terms of streamlining things faster. but these are quote unquote good problems to have, but investors have driven up the share price so much, any fly in the ointment is a good excuse to sell. scarlet: i wonder whether we learned anything new in terms of its m&a ambitions. coreweave trying to acquire core scientific not so long ago and it was rebuffed. it is still morphing forward with m&a as a possibility. caroline: core scientific remains a partner of theirs. ultimately it came down to a price point issue.

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on the day that they said coreweave was not going through, they continued to scale out. they are trying to convince the market is not just the fact that they have the right people to put in the right servers in the right time frame, it’s about the software they build. they are the most efficient neo cloud out there. i am sure they will tell the market that they will be building the data centers more themselves going forward, getting the right engineering talent, labor. scarlet: all part of the narrative that the company is trying to tell. you can check out the rest of the interview on bloomberg.com. coming up on this veterans day, we will speak with army veteran and ceo jill castilla on how her service shaped her leadership, and what is next for her bank navigating the shut down credit concerns. this is bloomberg. ♪

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scarlet: this is “bloomberg markets.” i’m scarlet fu. we are in day 42 of the u.s. government shutdown. small business owners are bracing for a steep rise in health care costs next year, some even saying that premiums are set to nearly quadruple. let’s bring in caitlin riley. you spoke with a bunch of small business owners. what are they telling you in terms of their frustrations with the increased premiums? >> they are worried for a couple of reasons. a lot of their employees on these exchanges, they are maroon about their ability to compete with smaller firms if this affordable source of health care goes away. they also worried about their own personal health care costs. the small business owners i spoke to were saying that they were thinking about cutting other employees hours, picking up more hours themselves, or in

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some cases shutting up shop entirely so they can seek work and another employer that provides health insurance. scarlet: part of this goes back to what the shutdown was about, these tax credits that expired, republican did not want to extend, democrats wanted to extend, and that resulted in the shutdown. what happens if they permanently lose these tax credits and cannot get the health insurance plans on the exchanges? caitlin: we are going to see a lot of people lose health insurance entirely when they cannot afford the premium cost. we know that senate republicans had promised democrats a boat on this in december but that leaves these subsidies on very shaky ground. a group of democrats cut a deal with republicans to reopen the government without including a solution for this. it is a leading people in a very uncertain position. scarlet: i can see how that is.

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can you give me an example of some of the folks who you spoke with, what they said? particularly folks with pre-existing conditions who didn’t have an option to purchase health insurance before the affordable care act came along. caitlin: i spoke to one small business owner based in nebraska, she owns a restaurant and catering company. she said before the enhanced subsidies went into place in 2021, she went without health care for years, and is looking at that prospect again. she is balancing a lot of different costs and demands, including rising input costs for her business, as she has been hit with tariffs. this is just another hit to a sector that has small margins. they are really worried about what happens next year when these enhanced subsidies go away. scarlet: you bring up a good

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point, dealing with the tariffs, tight expenses, and this is all weighing on them at the moment. thank you. no better time to bring in jill castilla, president and ceo of citizens bank of edmond, a u.s. army veteran. she is here to talk about how her service informs her leadership in community banking. 20% of tos have served in the armed forces. we will get to your service and your company in just a bit. i wanted to get your take on some of those costs that caitlin was reminding us of, the increased health insurance premiums, tariffs, the higher cost of doing business in 2025. what that means for small businesses and how that is impacting your customers at citizens bank. jill: thank you for the question. we surveyed our small businesses in oklahoma a month ago to see

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with the level of inflation has been, the impact on tariffs, anticipated price increases going forward. what we found is that they had already experienced a 19% increase in small business costs in 2025. it will be interesting to see how they are able to manage. they were also expecting to pass along more increases as they could in their prices locally in oklahoma. if the increased cost of health insurance goes up, it could result in those benefits not being potentially offered, or small business owners looking for collaborative opportunities. our chambers of commerce used to collaborate to provide more self-funded solution for health insurance. maybe we will see a resurgence of cooperations. scarlet: how does that impact their need for loans? what kind of change in demand are you seeing as a result from commercial customers? jill: we are seeing some greater

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demand from our small business compassed – customers to fill in the gaps but the economy is still relatively strong in oklahoma. we have had a 49-month run of historically low unemployment, still a level of high engagement when it comes to retail shopping , but we have seen a softening in tax revenue from disabilities, a shift to more online services. it is a complicated space for businesses especially as they come out of covid recovery, don’t have those safety nets as they had previously. we started an incubator at our bank to help those small businesses, some of them resetting to make sure they have great resources available to them to make great business decisions. we are seeing those kinds of effort throughout the city and state. scarlet: i want to switch gears and get your thoughts on regulation and policy,

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specifically the fdic increasing the cap for deposit insurance. you are not a proponent of them increasing that to $10 million. can i ask why? jill: it is very targeted, increasing the insurance on some accounts. our bank, we have less than 10% of our depositors uninsured, so very limited in how it affects small bank customers. it is also in the details of how the cost would be implemented, how the funding of the deposit insurance fund would be filled. there is an exemption for funding immediately. scarlet: before i let you go, it is veterans day. i want to get a sense from you, the job market is definitely in a weird place. that could be changing with ai. what have you observed about the intangible benefits of serving in the military?

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when you are hiring, recruiting young people, especially given your own experience? jill: hiring veterans coming to get resilient individuals who have been challenged under pressure time and again. critical thinking skills that they are able to bring to the workplace environment. problem-solving that has creativity from all kinds of different mos’s. we are so grateful to have not only veterans hired but also current reservists, national guardsmen, and military spouses who still have an unreal rate of unemployment. scarlet: you were a member of the oklahoma national guard, you’re has been served, and two of your sons are currently on active duty. jill castilla, the chairman and ceo of citizens bank of edmond. balance of power is next as we look at the dow in the green by

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.9 percent. the s&p 500 also gaining .1%. this is bloomberg. this is bloomberg. ♪♪ ♪♪ ♪♪

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>> live from washington, d.c., this is “balance of power” with joe mathieu and kailey leinz. scarlet: new signed the job market is slowing. welcome to the tuesday edition as adp fills a data void with

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lower payrolls from october. we will be talking about this through the hour. i’m joe mathieu alongside tyler kendall in washington. the reason of course why we have a vacuum of data is the government is still close, although that may be changing in the next 24 hours. tyler: if you look very inching closer to the government reopening. it is our understanding the house will hold a vote on the package at 4:00 eastern tomorrow. speaker mike johnson still have some work cut out for him. he can only afford to lose two republican votes, and that is if they all make it to town, shut delays related to our traveling system. joe: they will have about 24 hours to get back to town for what looks like a boat to reopen the government tomorrow evening. then the president would sign the bill. how long it would take to start getting economic data is a question. tyler: as well as how long it will take for the recipients that

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