katie: 30 minutes into the trading day. here the top stories we are following. doc you sign in snap join amazon and meta and announcing big-time cost cuts. we will discuss. the hottest beer in america does not have alcohol. bill joins us to talk about the nonalcoholic craze and out he's battling off the likes of heineken. the former comptroller of the currency warns bigger capital requirements for banks could create a vacuum for smaller borrowers.

welcome to bloomberg markets. you take a look at these markets right now and the s&p 500 is perfectly unchanged. a little bit more action in big tech to the downside. the nasdaq 100 off by 3/10 of 1% more so if you look at the semi stocks. the semiconductor index off by more than 1%. this led on the upside currently leading on the downside at least for today. we are back below 14 volatility draining out of this market. we want to get some breaking news from the sec prayed let's go to sonali basak with the details. sonali: the sec is set to ask hedge funds at proprietary trading firms trading in treasury markets regularly to register as dealers. this is a designation by the sec that would require these hedge

funds and trading firms to have much greater comprised cost and oversight. these are all part of the sec chairs packed to try and reform the treasury market. some of the reforms have been welcomed i the industry. this is something we expect heavily to be fought by hedge funds on the larger industry given the concerns it would add a lot of challenges to trading in this market more regularly. the hedge funds and market makers protest they are playing an increasingly important part of this market given the role they added adding liquidity at a time when issuance is pretty extreme relative to what we've seen in the normal markets. the basis trade has been in the markets -- spotlight because of prior hiccups in the market particularly in repo markets. this is another effort by the sec to provide more oversight of

the industry by requiring firms to be dealers themselves. katie: this is bound to face pushback, what is the argument against these designations? sonali: the hedge funds and these market makers are not banks so traditional dealers have had to face much regulation in the past but these firms are outside of traditional regulatory oversight, they tend to be smaller firms that deal with investors money. the more these hedge funds face the requirements to add more disclosure there's a whole host of rules they are fighting, it would make it harder for them to trade and they save a critical function in these markets and it should not be harder to trade in the most liquid market in the world in their view. katie: really appreciate your instant analysis of that breaking news, we have more breaking news to bring you. former president trump is denied immunity in the dce election case that is by an appeals

court. we know the former president has a litany of court cases against him right now and he's not just the former president he is the current candidate. we will follow that story and bring you more details. we want to turn to the earnings story as well because eli lilly posting in annual sales outlook the topped expectations as their weight loss drug drives the drugmaker. sam, let's talk about those expectations because they were pretty high. it seems that eli lilly surpassed them. sam: certainly. just the drug that was launched in december we estimate about the fifth of december. in about three weeks it's an incredible number. the year end, that small number for the three weeks plus a $400 million beat on the sales of the

drug which is officially for diabetes but there is obviously some off label use for obesity as well. that did come from an accounting thing. the company was able to put out a 2024 guidance which is meaningfully above consensus. katie: when it comes to eli lilly and novo nordisk it feels like they have a happy problem in the demand is outstripping supply. we know that novo nordisk is planning to up its manufacturing capabilities. how big of a constraint is that for them? sam: they continue to say supply or demand outstrips supply and i can see that changing in the next year or two, this is the first some of seems much drug as you can make of what the public

will take. slightly convoluted through the holding company that they are related with. that drove the share price of eli lilly. katie: that is sam of bloomberg intelligence, thank you so much. we want to go back to that donald trump news we broke. we will go to kailey leinz from washington. the headline here trumped denied immunity in dce election case by appeals court. what do we know so far? kailey: this is the case the president has been making for some time that he is immune from prosecution in the case special counsel jack smith brought charging him with efforts to overturn the results of the 2020 election that he should be immune from the prosecution as a former president and that the actions he took of the united -- as president should be protected. the appeals court ruled against

that saying he is not in fact immune. this decision will be on hold until february 12, six days from now so the president -- former president can appeal it to the supreme court. this does not mean this is over entirely yet. the trial in this case jack smith brought was slated to start on march 4 just last week and the judge in the case vacated the trial data because we were awaiting this immunity decision. we will have to wait and see if the former president does appeal this case. he'll have six days to do so. then depending on how that process plays out if this does get heard by the supreme court they would have to decide whether to rule on this matter. at that point once this is resolved is when this trial could move forward prayed we are talking about a process that could take some time to play out and further delay the start of the trial the former president waldman we have to face here in washington. katie: he has six days to appeal this decision.

we are not just talking about the front runner for the republican nomination. how does the legal timeline match up with the campaign timeline? kailey: with the initial trial data that was slated on march 4 will not be happening, that's the day before super tuesday which is an important primary day in the republican primary race so this gets pushed out later in the election cycle. we could be talking about him not just as the presumptive republican nominee but the actual nominee where he will have to balance being on the campaign trail with days in court and keeping in mind he has to balance financing. it was revealed in the financing that in the year 2023, trumps campaign and super pac supporting him spent $50 million on his legal fees. we know he's been raising money off of each and every indictment he's faced, people making contributions to support his legal defense but this is taking

a lot of outflow which won't be spent on campaigns like advertisements. it's not just a manner of managing the time frame but the financing around it as this case in washington is just one of four felony cases he's facing keeping aside the other civil issues he's facing as well. katie: that is kailey leinz on the breaking news that donald trump can be prosecuted for trying to overturn the 2020 u.s. election a federal appeals court ruling today. let's turn back to these markets now. we are joined by the three -- mark connors who's been waiting patiently beside me. i'm not can ask you about donald trump but i will ask about big tech layoffs. it seems to be one of the big storylines in 2024. how are you viewing that. are you viewing that is an industry trend right size it's. is there something worrying there. mark: let me step back.

no problem on waiting. a lot of breaking news. we are used to talking about how to frame a question. the ozempic trade, and then compare that to atlantic brewing. it's got alcohol and drugs. tech knows how to get to your brain. if you look at the movers that's been going on recently it's about how to get client acquisition. they went fast. they are normalizing the workforce, reducing it and optimizing it. what it means is it's good to be another three years before we see another round of layoffs. katie: so we are not done yet in tact. to your point that they are using data to get into your brain. in elon musk's case he is using chips. thinking about the tech bid right now, tech reclaiming its place at the top of this market leader board, is that an alpha

play. are they playing offense in tech or defense? mark: they are running away from banks and all that, it is a little bit like that. it is a bit of the whole market slowing down and this is borrowing from a former bond trader in the laundry pile. let's look at the data we shared earlier. old-time finance, forget earnings because you can make up stuff on charge offs, etc.. cash flow share for the magnificent seven is multiple higher than other industries. they are generating cash to the point they do not know what they are doing with it. it is an alpha play because you can win from reinvestment or the dividend surprised like we got with meta the other day. katie: i find that fascinating.

i want to talk about the old economy. the stories are great, they have so much cash as you mentioned. you think about big oil for example. there was a great story on the terminal. we look at chevron for example hitting record production in 2023 it bought back 5% of its stock. at some rosy forecasts. then you look at the p/e ratio. it is half that of the s&p 500. why are investors more excited about a story like that. mark: they are running three times faster than tech just to stand still. exxon used to be the largest market cap in the s&p. it's now 400 billion and we know their companies close to 10 times that. three companies in the energy index account for close to 15% of the entire 1.3 trillion, one .3 trillion of market cap in the sector versus close to 40 for the s&p. they are using tact, they are

basically eating their own and expanding. chevron's consolidation play as far as growth relative to the broader market. that's why the pe is not there because they growth beyond their own. katie: oil obviously looking undervalued at least relative to the market. a lot of people would argue big tech looks really expensive. mark: this goes to the part about defensive, but may be musical chair game and the ones left standing, it makes sense they are generating cash, the multiples are there. we don't like banks as you know, but there is a chance you get a rotation there. but given what we've heard on sunday from powell where he called out his comrade across

the street in the treasury office. we may get a reversal. if that happens you will see value and tech fall. it won't be as violent as march of 21 but it will be fast and hard we think. they are at risk. katie: stick with us because we want to talk about meta and that dividend but let's take a quick look at what's moving within the market. tell me about palantir. emily: palantir is an ai software company that provides services to u.s. companies and governments that are allied with the u.s. including the u.s. and they are beating estimates across the board in their most recent outlook. the stock seeing its biggest intraday jump since november. the full-year profit outlook beat expectations. the company expects adjusted income from operations to be

$834 million. that's versus estimates of 760 million. they reported the first annual profit in 2023 which came in at $210 million which beat expectations. you look at the commentary from the ceo says they will be rebuilding the company to focus on ai. i think they were focusing on ai before but now our pivoting even more to that software. they also said there commercial business is exploding in a way they don't know how to handle. if you are long palantir that's what you want to hear. katie: space -- the stock up 29%. tell me about what's going on in china. emily: we are seeing u.s. list did china stocks. rallying because of officials in beijing made announcements to boost that stock market, the china stock market is down to a five year low.

we had some news prayed one of them being a sovereign fund will boost the holdings of etf's in china. the regulator saying they will push more long only funds to be buying china stocks, all of this news bolstering that market and those adrs as well as the crane shares etf, the china internet etf it's also rallying. katie: we will see how sustainable it is. emily, thank you so much. coming up, the faa administrator is testifying to the house transportation committee after the 737 max 9s blowout. this is bloomberg. >> taking over the agency since your confirmation where your priorities are going, obviously moving forward. we look forward to hearing an update on what the faa is doing regarding the flight 1282. ♪

>> the faa's decisive response to this accident which included grounding the max 9s fleet, the separate investigation into whether boeing delivered a noncompliant aircraft to its customer. katie: you're looking live at the house transportation committee where the faa administrator is testifying about the 737 max 9s blowout. that's a story we will be following closely. let's get back to mark connors. i promise we would talk about meta and i do want to talk about it. it feels like the earnings were an afterthought. the big headlines, the big buyback they announced and their

first ever quarterly dividend. which is more exciting? mark: it tells you about the corporate structure and is an indication of the state of affairs. i think you're a better allocator of cash than i am. that offsets the dollar as matt levine was talking about at this stage. >> a big payout there for mark zuckerberg. why now? when it comes to these tech companies a few of them have dividends or significantly a lot of them do not. what do you make of this decision by meta? is this a positive sign? mark: this is a positive sign. when you look at their financials, coming from 60 pe down to 20 you of cash flow per share that still rising, earnings that are still rising.

they've done two or three iterations into meta and bounce it back and now they are going to ai. they obviously have the cash. he saying i would rather have a stable base of investors, he is speaking to the demographic and if you have a stable base of investors, it's almost better than going private. i think that's what he's looking for is currying favor. katie: i have a two-part question. do you think and hope other big tech companies will follow that here. thinking about amazon famously does not offer dividends, how do you think they are viewing this? mark: amazon is a bit of a different am an old -- of an animal. they have an allocator on their cash. as far as an investor standpoint, i would rather have the company that has the opportunity to invest the cash then give it back.

if you look at where the return profile will be for meta the next five years versus the last five years it will be lower. unto itself. it may outpace companies like we talked about online, industrials, etc. but it will be lower because of the fact they are paying out that cash. katie: i was joking in the commercial break it seems like a bit of a pair trade going on. there are the met -- the meadows of the world as well as the big banks that you are not as excited about. jane frazier has been pretty aggressive in that restructuring plan. mark: she has her plate full and she's been clear about the management and how everything is going to go out from a cost-reduction standpoint. let's look at a little bit of history. sunday night jay powell said we have a problem in finance. the central bank accounts for 40% of money supply.

the central bank is the commercial banker of the united states by definition of the money supply. he was on 60 minutes for the first time that happened was ben bernanke in 2009 when he said everything is ok, stay calm. that was the exact same week citibank broke a dollar on share price and the fed pivoted and citibank today 10 for one reverse split. citibank almost broke a dollar but it did not because it was entrenched as a payer for so many people. they do not have that background. today, citibank stock is lower than it was in 1993. i say that and it does not sink in. if you invested in the stock and hold it, if it's lower than it was 30 years ago. citibank has almost the same amount of people. the banking system has changed dramatically. it's become slower, it is less

levered. i think fintech, folks like visa. i have a t.r.y. trade. we have meta, citi and visa. we are more of a digital assets firm. we are there because we see the banks like jp morgan building a blockchain. we think that the faster you move to a visa model the better. i don't know if the large banks can make that transition. it's more like a liquidating trust. paying you a dividend, the stock will stay flat and it will wind up. katie: when it comes to the banks, i hear what you are saying. is that reason enough to sell bank holdings and bet against banks or would you simply not touch them right now? mark: from a wealth creation and preservation you need to be making three to 5% to stay flat.

banks except for jp morgan in one or two others have not done that. that is why we are in fintech. we think you have to be in companies that are solving that problem. katie: before we let you go, talk to us more about that. jp morgan it seems it is not necessarily a blanket view on banks, there are some bright spots. mark: i was out of a bank called credit suisse and the reason i can speak to banking is when i was there was a tremendous clearinghouse of information. the banks good maximizing and transferring the data back to client retention and profits. only if you are doing that. katie: great to have you on set with us. that is mark connors. time for social climbers taking a quick look at the stocks

making waves on social media. we start with the online educational services company chegg falling after disappointing services. spotify beats forecasts for subscribers growth. the music streaming giant has been working to cut costs in an effort to be more efficient and profitable. spotify announced their layoffs in december. so maybe starting to see those cost cuts bear fruit. docusign announcing it will play a 400 employees. to private equity firms lost interest in acquiring the signature services firm. you can follow the latest on your bloomberg terminal. coming up, drinking without the buzz. why more and more people are reaching for perus without the -- four brews without the booze.

this is bloomberg. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

katie: the nonalcoholic beer market expected to grow by 2030. i'm thrilled to say bill is joining us from the athletic brewing company. cofounder and ceo. they are the market leader in the nonalcoholic space according to an iq. i do like alcohol but even i know how popular athletic has gotten. last year you saw over $90 million in sales. talk about that journey just to set the scene here.

bill: i was one of the world's largest hedge funds which is a great career. nonalcoholic beer is an undeniable opportunity. this is an opportunity to change the way the world drinks braided humans -- this busy modern lifestyle they're such an opportunity to welcome more and more people into the adult beverage space and give them the culinary and social experiences. we really stepped into that making the best tasting beer out there and then really bringing aspirational marketing behind it as well. it's really been a brick by brick story where i quit my job on wall street. we started homebrewing for a year. i was bringing around unlabeled bottles to retailers throughout the tri-state area. before i knew it i had this

business were nobody at all wanted to talk to me and then ironically now we can keep anything in stock. we built the two biggest nonalcoholic breweries in the world. katie: i want to talk about demographics because i spend a lot of time on social media and specifically on tiktok. but nonalcoholic trend has caught on especially in the last year or so. how much of the growth is being driven by millennials and gen z? bill: according to nielsen 45% of gen z drinkers have never had a drink of alcohol. there is an enormous moderation tailwind behind this trend. but in that 80% of athletic brewing consumers still have alcohol it's just alcohol occasions are so specific, there's a whole five or six

other days of the weaker there we can let people in and welcome them back to bars and restaurants and expand the occasion base. it's quite generational and opportunity for the adult beverage world. katie: it's not like people are completely nonalcoholic it's something they are adding. when you think about the competitive landscape this sort of reminds me of ev makers verges traditional car makers to market with ev's. you are by far the most popular nonalcoholic beer but you're seeing the likes of heineken and bud come up with their own nonalcoholic versions of their beers. do you view them as competition? bill: entirely positive. i hope share the adult nonalcoholic beverage association and that's welcoming and fostering growth in the category. 10 years ago you could not get a single name brand in nonalcohol form.

you can pre-much get any brand you want in nonalcoholic former aide unfortunately they are still -- athletic brewing brings a whole slew of options. we have five or six distributed styles. we've created over 150 beers as well over the life of our company. we are here to be the specialist, to offer consumers of all kinds of variety for every different occasion and it's a really exciting time in the adult beverage world. katie: when it comes to how you plan to compete is that the cornerstone? but you will offer more variety not just loggers? bill: it's more than we are a specialist. as you can see behind me we've built two enormous breweries, our quality gets better, and really it's where other

companies have 150 priorities and nonalcoholic is one of them, we are focused on incredible great tasting nonalcoholic beer plus marketing to go along with it. we want people walking through the door of the grocery store looking for athletic brewing, not necessarily walking up and thinking about what they want that day. katie: do one thing and do it well. you've raised nearly $175 million across five rounds. in 2022, they invested 50 million in your business. are you considering an ipo at some point? bill: small business is tough every step of the way. manufacturing at the high quality level is expensive. we have a really good foundation under us. we are thankful to all of our

investors. it was a very crazy idea in the beginning. having dr pepper, their incredible mentors. so we are so excited we really have options in front of us. i don't rule out an ipo. we have real long-term ambition. katie: you don't want to rule out an ipo. what about a sale? bill: if you think about it right now, and nonalcoholic beer is still only 1.25% of all beer despite the category growing almost 10 at. there are entire channels and geographies but nonalcoholic beer has not penetrated. i think it's going up at least 10% or 20% of the market in the next decade. i would love to see expectations catch up with our reality.

we are in this for the long haul. katie: you have five flagship brews, what's next? bill: we want our community to let us know. we have our most popular peelers -- peers out on retail. the best most popular ones make it out to the world and right now that's our run wild ipa, our golden ale, are hazy ipa and our lager. katie: hope to check in with you soon. let's get a check on these markets right now. we will do that with abigail doolittle. abigail: mixed markets. the nasdaq some of the other indexes. up slightly for the nasdaq down 4/10 of 1%. let's check in on that over the last trading day. you can see overnight during the

early parts of the european session mainly higher. around the open taking a big tick lower. unclear fit that sec rule around big hedge funds becoming primary dealers or the former president trump headlines, in any case we have the nasdaq 100 down for a second day in the row. we have the shares of stockusign --docusign down. to the upside we have spotify up 8.1% putting up a big corridor. there headcount reduction helping out in terms of the numbers and they had a great subscriber number for the last quarter in the month of december. eli lilly well off of its highs, they put up a big corridor helped out by their new weight loss drug, they put up a strong

2024 outlook. if we round it out and there we go down to the downside. we have a big gain for china tech stocks up 5.2%, take out the russell 2000 a bit of a reprieve after the recent selling. we have transports there as well up 1.9% so little bit of brett's with these more interesting indexes. katie: we will see how sustainable that is but let's pivot because ubs will resume share buybacks this year vowing to bring $1 billion back to shareholders as we see them move beyond the integration of credits we sprayed the ceo sat down with francine lacqua discussing what he sees ahead in 2024. sergio: pretending to know what you don't know. the truth of the matter is the uncertainties we see from many

areas not on the macro, more traditional economic indicator which seems to be much more volatile than we had in the past. the geopolitical situation, also the emotions and the psychological effects on consumers and investors is a factor that's very complex to manage. i still remain convinced that the market as -- was too complacent early on to see about the fed so rapidly. in the last mile of inflation it seems to be more challenging. i do think it is prudent for central banks to stay focused on fighting inflation because it creates unwanted consequences if we give inflation -- keep it way to -- way too high compared to inflation targets.

there is a concrete hold that rates will come down. we look positively for the first quarter of the year, but we do have to expect continued volatility in markets. katie: that was the ubs ceo and francine lacqua operated coming up -- francine lacqua. coming the former comptroller of the currency discussing changes to the banking system. this is bloomberg. ♪

katie: it is time for our daily

wall street week segment. new bank regulations are set to be offering protections during downturns. joining us is the former comptroller of the currency and currently managing partner as well as wall street week host david westin. those proposed new requirements the subject of some heated debates. david: for the banking industry they are not too happy necessarily. first principles on these proposed capital requirements what is the problem that's being addressed or is it a matter of complying with commitments? >> thank you very much for allowing me to join you this morning. as katie said this is a very topical item today. both regulators and the banking industry and it's an attempt to bring deposit to the endgame is what you've heard the regulators .2 and in july they put out a

rule that removes a lot of the balances to risk rated assets. and the impact of that by a lot of regulators in the private banking sectors is that would increase the capital level for those banks over $100 million from 16% to 22%. the other prevention to this is historically that applied to banks over $700 million and now would apply to banks over $100 billion. so substantial increase that this will apply to. katie: let's look at potential unintended consequences particularly when it comes to smaller borrowers. if we see some banks pull back on lending for smaller borrowers as some have suggested might happen, what does that mean necessarily? who steps in to fill that void so to speak? joseph: the process is those

comment period ended on january 16. regulators will go back and evaluate those comments they receive from the industry and the industry groups and individuals. it's all they would incorporate those. the rule actually today is -- it will probably have some modifications to it. i think it will be directional and correct to what they put out. you bring up the point is going by risk-weighted asset there's probably a risk of some serious risk reductions in credit that small businesses and consumers can access and i think the consequences really is twofold. the banks will see those over 100 million dollars substantially increase their operating expenses. in the second thing that i think

you will see is similar to what we saw in the housing sector is we saw most residential lending leave the banking sector. i think we are substantially at risk of seeing small business lending perhaps higher risk consumer lending and business lending that would go back to the private sector. that's why you've seen the substantial increase of companies accessing private capital. it's one of the reasons we are excited is we want to be able to bring that to the market and be able to support that, people cannot find their debt levels in the banking industry. david: it may benefit private credit, is there a downside risk to that. having formally been a regulator are we pushing more and more the financial system outside of regulation. is there a risk for the system as a result of that?

joseph: we've always felt having an under the umbrella of the regulatory agencies, their mission is to create a safe and sound banking industry and that should be the goal. when you push out you have oversight and control of that. i think we reflect back to the covid period historically the banking industry whether it's a recession or economic challenges the banking industry generally begins to compress down because of the need for capital. through covid we saw a period where the banking industry was all sorts of strength for consumer and businesses that had the ability to continue to land and have the ability to restructure and that actually was a big positive of our nation's ability to recover from the covid and allow our economy to continue to move forward. katie: if that is the case we

learned in covid that at current levels of reserves that the banking sector was sound. what is the right level of reserves so to speak? how should that be measured? joseph: i think by looking at risk rated assets what they mean by that is basically looking at how risky is the lending and that lending should require more capital against it. it really gets down to when is enough enough both in capital and liquidity. i think most people feel the industry groups were at that level today and this actually pushes the industry further that could have as we discussed earlier some significant negative consequences so i think the regulators heard that loud and strong. now they will take the 90 day to

six month period and everyone is hopeful they will come back. david: we have to talk about regional banks. to some extent possible problems awful real estate issues. is that a one-off case or is that indicating a larger weakness? it's really fallen off because of the news from new york community bank. joseph: if you look at the balance sheet of the regional community banks, they are lending out activities with a larger percentage of commercial real estate. by the nature of the balance sheet and their dedication to commercial real estate, they will feel the impact as we see a reevaluation. commercial real estate is a valuation of cash flow and

applying the value to it. kinda for -- there are four main components of that. they are usually compare what interest rates are, no one would want to get a 3% coupon on a multi family when you could get a 5% treasury unless you thought there was a lot of upside. the vacancy factors that the commercial real estate is experiencing were -- where historically that was made of the 5% with high single digits. we all know what's happened to real estate borrowing, people were borrowing at 3% so they could borrow against 7% or 8%. the operating expenses for commercial real estate has risen , getting people to come out and repair are up. all of those are negatively impacting commercial real estate as those loans come up and they need to be reevaluated for what the market is with banks applying a margin to that.

katie: joseph, have to leave it there. great to get your insight. the former comptroller of the currency and currently andalusian managing partner. an important conversation again. david: we will continue the banking discussion on friday. the former fbi see will talk to us about how -- we will also talk with julian of 6th street as well as pete stoll rose of kkr. katie: we will check in with you tomorrow. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app.

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katie: let's take a look at some of the highs and lows this morning. we start with spotify beating forecasts on subscriber growth. shares rallying right there. kkr pizza earnings estimates fueled by record fee related earnings. we are toggling back and forth. eli lilly forecasting 2024 sales ahead of expectations thanks to its weight loss drugs. expectations of zepbound were superhigh. eli lilly has surpassed those paid charter communications on the bad news front hitting a 52-week low after it was cutting wells fargo after reporting disappointing earnings results currently shares moving meaningfully lower. coming up looking ahead nancy joins us dust joins bloomberg

technology with caroline hyde and ed ludlow. this is bloomberg. ♪ how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

>> this is announcer: -- "bloomberg technology ," with caroline hyde and ed ludlow. caroline: i'm caroline hyde in new york. ed: and i'm ed ludlow in san francisco. this is "bloomberg technology." caroline: full earnings coverage ahead of spotify in palantir, they surge on strong results. ed: strategists from citibank worn positioning in tecoog