and citadel securities? >> for us, your difficult day is when you miss a significant opportunity or you are on the wrong side of a significant event. we have had plenty of opportunities to do both over the first four months of this year. the good news for us is there have been enough dislocations that we have been able to generate revenues that are far in excess of our losses. but these are trying times for all managers. it is difficult to deploy capital when the pie is shrinking every day. >> i want to point out something you probably cannot, which is that, all that being said, you are doing just fine. there were some numbers that came out today that some in the audience may have seen. citadel's wellington hedge fund is up 7.5% over april. it is up almost 13% year to date. all five of your strategies are making money. i can understand given what we have seen in commodities that commodities might be strong. citadel has tremendous strength in quant. but the equity market is getting butchered. how are you able

francine lacqua is sitting down with citadel ceo ken griffin who said yesterday was a fairly orderly decline in the market. >> a litany of supply chain challenges. >> you think if you are walmart, you can pass on these costs going up to your consumer without a fight back when inflation is already up? >> if you are law mark -- walmart, you just saw targets numbers yesterday. i'm going to be in a position to put cost increases through. both of these firms have to. they are not in a position to absorb the entire supply chain stocks. >> and the consumer can take that. >> the consumer, for a family that's in the lower quartile income -- this is why productivity growth is so important. because inflation really impacts people who are living paycheck-to-paycheck most aggressively. >> are we looking at stagflation? when did we hit bottom? >> we are not stagflation yet. we are going to see positive growth over the next couple of quarters. unemployment is 3.6%. there are 11 million open jobs. these are numbers that look nothing like gloom and doom. >> what are we living through? >> we are livin

. >> that was the citadel ceo earlier today. he said recession was inevitable, but not in the next few months. our next guest is with vanguard. that is what investors are trying to figure out. interesting hearing him talk about the value of being public. but many stocks are challenged right now. >> thank you for having me. we are seeing market volatility that is clearly unfortunate and unpleasant. we entered the year with lofty valuations in the technology space. unsustainable zero interest rates. our view is that at some point, we would see this sort of correction. certainly, that is upon us. kriti: i have to ask about the volatility and the economic cycle. historically, a recession is supposed to come every three to five months. do we return to the old regime of a recession every three to five years? >> i think it's possible, although still less likely. decades ago, we had greater incidence of recessions. more manufacturing-based economy, high inventory swings. now, recession is clearly likely and possible and we will have the

from crypto to twitter, we will hear from ken griffin at the citadel. and what is old is new again. new media is struggling after looking almost invincible through the pandemic. what roles streaming and media companies will plan the future. we will talk about that, next on bloomberg. ♪ xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. ♪ emily: welcome back to "bloomberg technology" the milken institute global conference is underway and erik schatzker caught up with citadels ceo can griffith -- ken griffin to talk on everything from inflation to the war in ukraine. part of that conversation right now. take a listen. >> it's pretty simple. all of my colleagues who

citadel securities had no rolein robinhood's decision to limit trading in gamestop. - so citadel is a realconglomerate. they have a hedge fund.they have a broker. and they have a marketmaker. - mr. griffin, why is this not consideredmanipulating a stock whenever you can shortsell to 140%? don't youthink there should be a limit on something like that? ken griffin:i'm not sure it's worth us delvinginto legislative corrections for a very unique situation, in terms of the extremesize of the short interest. - why is it that a stockcan be shorted over 100%? i don't even knowhow you're allowed to do that. congressman: mr. plotkin, you made the commentin your testimony a minute ago that you were not tryingto manipulate stock. yet if you're shortselling a stock 140%, explain to me why that'snot manipulating the stock. - any time we short a stock, our systems actually force usto find a borrower. so we alwaysshort stocks within the context of all the rules. - the fundamental reasonwhy this happened isn't because we wanteda revolution against hedge funds.it was because there wasan opportunity out

the grandiose building that is america's citadel of the written word. and arsenal in the battle against ignorance a monument to the ideals of free expression and free thought the library of congress was first established for the exclusive use of the men who made america's laws. brought it as since become the nation's reading room opened to every man. surrounding the main reading room with a stacks of general reference books. to which the reader can come directly for the volumes he wants. but in a library containing nearly six million books and pamphlets only a small proportion can be kept at arm's length. the rest are stored in great stack rooms where modern air conditioning is eliminated the traditional must and dust the housing of a great and diverse collection of the materials of scholarship presents many technical problems. the library of congress must have files for its million and a half maps. portfolios must be provided for more than half a million prints. and cases are needed for the changing display of selected groups of pictures. the oriental

citadel founder ken griffin says he is out of step with many investors because he doesn't see a recession happening in the next couple of quarters. he told us that the key market themes are well now -- well known and differentiation is the key. >> markets are awash in opportunity. every day, there is something to do. it comes down to in a business predicated on research, it is about idea generation. what differentiated view do we have whether it's about commodity, credit, equity that is different than consensus? that's where we deploy the capital. >> is there something that you see as securely attractive? >> no, i don't. the contemporaries we speak to and compare notes with, information flows seamlessly across the market. the big debates around -- commodities are the other big debate. in particular, where is the u.s. going to go with energy policy? how fast can europe pivot away from the impacts of the war with ukraine? what is going green mean and in particular, now that we have seen shortcomings of policies that were out of sync with reality and the devastating impact on consumers, regu

from crypto to twitter, we will hear from ken griffin at the citadel. and what is old is new again. new media is struggling after looking almost invincible through the pandemic. what roles streaming and media companies will plan the future. we will talk about that, next on bloomberg. ♪ what's it like having xfinity internet? it's beyond gig-speed fast. so gaming with your niece, has never felt more intense. hey what does this button do? no, don't! we're talking supersonic wi-fi. three times the bandwidth and the power to connect hundreds of devices at once. that's powerful. couldn't said it better myself. you just did. unbeatable internet from xfinity. made to do anything so you can do anything. whoa. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating

citadel, blackrock, playing a big role in this. you can't help but think, when you look at the sandwich of, the bread you have, monday where we got the trust act announced as possible stablecoin regulation coming and of course terra luna, or ust, the stablecoin for terra luna, dropping dramatically losing its peg in the middle. and the other bread, janet yellen talking about regulation. they set it up, this happens in the middle, all of sudden janet yellen is calling for regulation. from all appearances it looks 100% deliberate. i will say regardless whether it is distribute or not the fact too many times in crypto we focus on the outcomes. we focus on 18% returns, how exciting that is. people forget the process is more important. the process and fundamentals laid out in exploitable opportunity for this to happen that was built into you know, to the tokennomics of terra luna. charles: who patch this is up? federal government wants to exploit this, who knows, my been part of the implosion? who patches this up, particularly this does

we must never betray the lives laid down to make our nation a beacon to the world, a citadel of liberty and justice for everyone. this is the mission of our time. our memorial to them must not be just a day when we pause and pray. it must be a daily commitment to act, come together, to be worthy of the price that was paid. may god bring comfort to all of those who mourn. may god bless our gold star and survivors. and please, god, protect our troops. god bless america and all of you. thank you. [applause] >> ladies and gentlemen, please stand for the playing of taps and the benediction. ♪ ["taps" playing] ♪ >> please join me in this closing prayer. lord, thank you for this nation we call home. thank you once again for those who come as the song says, more than felt their countries love. for the family of those fallen still grieving today. these are the patriots who continue to pay the price for the peace and security we enjoy. may god bless us with your spirit as we strive to honor their full measure of devotion. god bless america, her leaders, and all her children, amen. >> please r

check out this tweet from citadel. all i can say is ouch. as crypto comes under fire and i ask you on twitter if you think blackrock and citadel have something to do with this. here are some of your responses because they denied it. deb says i'm sure it's a coincidence, another saying certainly, there is enough verifiable information to have an open discussion about it, hat or no hat and finally this from daze it. trust your cut. it's always right. speaking of your gut it's a tough gut check for most investors i've been suggesting that you have a certain amount of cash, you can start to really slowly put that to work if you are indeed a long term investor i want you to think about this a lot of stocks that you might sell right now at a big loss, you'll be tempted to buyback six months from now a year from now at a much higher price. the amazons and apples of the world so at the very least you may have to just grin and bear it. here is the good news. you've got the best of the business to take you over the next hour. liz claman. it's on you.

but she was off till day tonight, but the citadel is spa coordinates, boards with the to assess exclusion world in those when that super e as a which in it does surely those just throwing up restoring blemishes. so dumb solution the she so that vessel bears. daniel crane, i need the utan uminski, but you turn you to the shadow carrillo. i've gone beyond my boy's cohort style. ah. such events hasn't been seen in ukraine for a long time, but it's impossible to forget the courage of the people who died for freedom and the $200.00 plus death camps in ukraine, where fascists massacre people of all nationalities. all the people of the soviet union liberated ukraine together. they hoisted the banner on the rice, thank together and grieve for their fallen comrades together. victory in 1945 over the world's greatest evil united people. and it wasn't questioned anywhere. he is a me cases from shells that compatriots and don't bass were killed with a now given to children as souvenirs. a boy were pushing the ball was like show live about i before you just group or show of mutual nasir corey with in

nicole there the pre moist yet to it though, but she was off till day to not, but the citadel is spa coordinators, boards with the to assess exclusion. would not have been that super are any as of which new dishes. surely those throwing up restoring it blemishes, full dumb solution, the shall not dazzle. bus daniel crane. i need the youth. nuanced keep, but you turn you up to the shadow carino. i've gone beyond my lawyer, gord style. ah, such events haven't been seen in ukraine for a long time, but it's impossible to forget the courage of the people who died for freedom and the 200 plus death camps in ukraine where fascist master, good people of all nationalities. all the people of the soviet union liberated ukraine together. they hoisted the banner on the rice thank together and grieve for their fallen comrades together. victory and 945 of the world's greatest evil united people. and it wasn't questioned anywhere fe to years. c a me cases from shells that compatriots and don't bass were killed was a now given to children as souvenirs. a boy were pushing for horror was like show rive

scranton, pennsylvania, and from scranton through ohio and the midwest, we used to be the manufacturing citadel of the world. today, we are joined by the leaders of some of the biggest manufacturers in the country -- ge, siemens energy, honeywell raytheon, lockheed martin, to announce a new initiative that is going to bury that label for good -- rust belt. we are at this plant because it is some other manufacturers that are going to make this happen and we are here to show why, along with the innovation bill in front of congress, all of this is going to address what is on everyone's mind -- fighting inflation, getting the prices down. today, we looked at 3d printing and met with makers who make complex parts for aircraft, and consumer products like hip implants. it grows across the board. for the folks at home, you might ask why it matters to you at home. i know you are worried about the price of gas, food and other necessities. why does it matter if we make more things in america? at matters a great deal because the pandemic and economic crisis that we inherited and the putin war in ukraine ha

you can put black rock and blackstone and citadel and apollo into the bucket. those are the four biggest names in investing and they are getting it. they are working on infrastructure and trying to help create institutional frameworks to help their clients. i don't think this asset class is going away. >> your analysts have been asking about the recession probability and how you fare for that. >> i think we will go into a recession. in some ways that will be good for crypto because we will get interest rates, and down again. i am sure we will have crypto adoption from investors. asset classes always get ahead of where the actual building of the company is. they had a decent market cap. you have to keep the story up until you can build product and then generate the revenue. half the process is happening in crypto. reptile needs stability in the non-crypto markets. you will see stability and crypto and fast adoption. >> that was mike. >> talk to us about exacerbating. do you think this alludes to the fact that a bitcoin that stable coin means you will have more p

let's do that though, but she was off till day tonight, but the citadel is spa coordinate sports with the 2 sets of squish. and would you not even that super ini as a witch and it does? sure he does is throwing up uninstalling blemishes for dumb solution. the shall not . dazzled. was daniel crane. i need the utan dimansky budget treatments as a shallow carino. i've gone beyond my boy's cohort style with such events hasn't been seen in ukraine for a long time. but it's impossible to forget the courage of the people who died for freedom and the $200.00 plus death camps in ukraine, where fascists massacre people of all nationalities. all the people of the soviet union liberated ukraine together. they hoisted the banner on the rice, thank together and grieve for their fallen comrades together. victory in 1945 over the world's greatest evil united people. and it wasn't questioned anywhere for a to years. a me cases from shells that compatriots and don't bass were killed with a now given to children as souvenirs to his a boy were pushing the ball was like show live about either for were so

let's do that though, but she was off till day tonight, but the citadel is spa coordinates, boards with the 2 sets of squish and william you know, when that super e, as a which in it does surely those throwing up restoring it blemishes, full dumb solution, the shall not dazzle buzz daniel crane. i knew that you'd new man keep but you turn him to the shadow carino. i've come up beyond my boy's court stylish ah. such events hasn't been seen in ukraine for a long time. but it's impossible to forget the courage of the people who died for freedom and the $200.00 plus death camps in ukraine, where fascist master, good people of all nationalities, with all the people of the soviet union, liberated ukraine. together they hoisted the banner on the rice, thank together and grief for their fallen comrades together. victory and 945 of the world's greatest evil united people. and it wasn't questioned anywhere. fe. t is a me. cases from shells that compatriots and don't bass were killed with a now given to children. the souvenirs a boy are pushing the border with like show river by before you just go

taylor: that was the citadel ceo ken griffin talking about the deals he is seeing in the u.s. right now. he also warned how the chaotic rockets are making it harder to look at new deals and ideas. for more on how this is affecting startups, i am joined by the founding partner at able. great to have you here. talk to us about the volatility we are seeing in the market and the impact you are seeing if at all on the fundraising as well. >> thank you for having me. we are seeing some of the later stage vc market state -- market shift shifting down a bit. many investors especially crossover funds with private public exposure, a pullback. we are hearing about flags as markets starts an oracle -- normalized. we are also seeing share in unicorns and extended share in bridge rounds. the stages that precede seems somewhat insulated. it's a matter of time before we see that instability feed into the early stage. many of those precede and seed rounds are out sizing their current wave for a little more cushion so they have runway given the macro uncertainty we are seeing in the later stage

to, from scranton all the way through ohio and all the way across the midwest, be the manufacturing citadel of the world. today, we're joined by leaders of some of the biggest manufacturers in the country. ge, siemens energy, honeywell, raytheon, lockheed martin, to announce a new initiative that is going to bury that label for good, the rust belt. you know, we're at this plant because it's smaller manufacturers that are going to make this happen. and we're here to show why, along with the innovation bill in front of congress, all of this is going to help address what is on everyone's mind, fighting inflation, getting prices down. we just toured the productivity bay looking at cutting-edge 3d printing. and we met with a group of suppliers that use 3d printing to make parts for big, complex machines like aircraft, power generators, consumer products like hip implants. it goes across the board. and now, for the folks at home, you might ask why does it matter to you at home? well, i know you're worried about the price of gas, food, and other necessities. and why, why it matters if we make more

yesterday, the founder of citadel, ken griffin, says the fed needs inflation to drop to 4% this year in order to avoid a recession. he also said it's an open question on whether they will be successful in terms of a soft landing without triggering a recession. bonds continue to take a hit. we've got the 10 year treasury yield up again this morning after rising above 3% for the first time since 2018 yesterday, as you can see it is now at 2.988%. joining me now is ceo ken mahone. also joining the conversation all morning long is mitch he rochelle and payne capital management president and podcast host, ryan payne. great to see everybody this morning. thank you so much for being here. ken mahone, kicking things off with you. we're here, the federal reserve's may meeting has arrived and jay powell told us what to expect, 50 basis point hike they'll announce tomorrow. how do you think stocks react? >> well, thank god they've been telegraphing this room forever and ever it seems. the reason why stocks are having trouble with traction is the credibility of the federal reserve. all last year

you also have several firms like blackrock and citadel claiming they have nothing to do with terra. meanwhile, let's go to the bloomberg once again. bitcoin got crammed. you're looking at the galaxy index, bitcoin ball, he owns the galaxy, it is down 64% from its peak. a lot of confidence rattled here. though we do see bitcoin coming back in asian trading along with a lot of the other digital coins. >> su keenan there. cryptocurrency, lessee was going on with -- lets he was going on with terrausd. with that said, the position we have, cryptocurrencies, underpinned some of these key decentralized finance protocols, snapping as its plunge, but coming back here as we see a bit of stability, coming back. we have a slight away from these popular digital tokens. in tokyo 5.8%. just to the downside. we have a lot more coming up. this is bloomberg. rishaad: 11:29 a.m. at the imperial palace in tokyo. the lunch break in just under a minute. stocks falling. negative. the broader market off. some recovery for the yen overnight. it went below 1.30 level. we are seeing exporters decline in the s

jonathan: the question that ken griffin of citadel was asking in california at the milton conference -- the mocon conference -- the milken conference. tom: there's two things going on here. the x-axis, i spent a lot of time talking about the x-axis duration, which clearly we are extending out, but what about the level of the crew that say we need to frame a higher yield? not many people are there with them. jonathan: we will catch up with one of the best. looking for to speaking with mark cabana of bank of america in the next hour. futures unchanged on the s&p. yields unchanged on the 10 year. on radio, on tv, this is "bloomberg surveillance." ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. there's a report that the u.s. supreme court is poised to overturn the landmark roe v. wade decision protecting the constitutional right to abortion. that pronto demonstrators to head into the court monday night -- that pronto demonstrators to head to the court monday night. the opinion was said to have been written by justice samuel alito. th

get on your individual picks, i want to hear what we have been listening to from ken griffin's from citadel. >> we are seeing a rotation from growth stocks toward stocks that are much more value stocks and are here in the present. this reflects the fact that real rates for the first time in a long time are likely to go positive for 2023. tom: patrick, do you align with that view? is there more room to run for the value space? patrick: there is. there is a group where the market is going to be massively directional but the stocks that don't have earnings are trading at high multiples. that have business models that will eventually generate earnings in 10 years. we are in an environment that will continue to punish those stocks because the market rewards cash flows today. there is inflation, if you produce cash flow today, you can make the case for it. it should be the equity layout of 36 times earnings. they don't even have -- profitability. the market rewarded companies that had profitability. the moment -- raised its prices, it loses 100% of -- chair and the same thing with delivery pharao

you can put lack rock and blackstone, and citadel, and apollo into the bucket. some of the biggest names in investing and they are getting in. they are working on infrastructure to great institutional frameworks to bring their clients and. i do not think this asset class is going away because they had a fit percent selloff. >> your clients have been asking you about the recession possibilities and how you prepare for that, how do you prepare? >> i think we will go into a recession, in some way so be good for crypto, it will get interest rates calm and down again, i'm sure we'll have crypto adoption from investors. we have already seen it from companies. asset classes -- prices always get ahead of the actual building of where a company is. tesla night selling cars and they had a decent arctic cat -- market cap. you have to keep the story up until you build product that generates the revenue. that is the process that is happening in crypto. what crypto needs is stability in the non-crypto markets. at that point you will see stability in crypto and fast adoption. >

lisa: a great conversation with ken griffin of citadel there alongside francine lacqua. good morning to you. futures are positive a little more than 1% on the s&p. yields traveling north heading up higher by three basis points. the euro is just a little negative, backing away from 1.06. tom: it will be interesting to see. what you thing about ken griffin's comments? i know you were studying that carefully. jonathan f.: he has something interesting to say about retail traders and wall street bets going after a certain hedge funds. and how that was not nice because it was after teachers pensions. tom: which lit up twitter. jonathan f.: i did not fully resonate with me. tom: it was so political. thank you to francine lacqua for bringing up that third rail. jonathan f.: just to get them to go deeper on that. i thought she'd had done a brilliant job. tom: i one stay out of that because we would like to work monday. this is really important, the gentlelady from the massachusetts institute of technology is with us, katie kaminski, research strategist at alpha simplex. she and i