katie: 30 minutes into this trading day. here are the top stories -- habits and have-nots. snap plunges, ford sores. the father of fast casual dining, we speak to the chairman about investing in the restaurant business. in conversation with carlisle, ceo harvey schwartz joins finale bass act one year on -- joins it sonali basak one year on from taking the top spot. ♪ katie: welcome to bloomberg

markets. you take a look at these markets right now it is quiet. s&p 500 currently up .4%, slightly better if you take a look at big tech. i wanted to highlight the vic said the bottom continuing to fall just slightly. then we have new york community bank, one of the biggest stories in markets, following another 7%. the struggles are continuing. cap i moody's yesterday, just one week after announcing it was slashing stockpiling reserves and putting more concern on commercial real estate. that is the fact that when you look at new york community bank, deposits have increased since the end of last year. how much of a comfort should that be? >> it is a nude -- near-term

comfort that they boosted the liquidity and deposits grew despite market turmoil. that is less of a near-term concern that deposits are flowing out of the bank but what is more concerning after a management, earlier this morning's they are still focused on capital but also talking about shedding commercial real estate loan, which will pressure potential topline revenues. katie: you have weighed what we heard on the management call and put that against the fact that they have seen deposits increased but at what point does the tide turn? when do we see deposits leave? >> that is an open question. they have some larger cd funding that is set to expire over the next three months. that is something we will be watching, but at seemed

encouraged by the fact that deposits have been sticking and that has proven to be a great asset. katie: you look at the broader sector. kr the is the etf that tracks these regional banks. currently off by 2.5 percent. how worried are you about contagion yeah --? herman: that is something the market is trying to assess out. the issues with new york community are part idiosyncratic and part systemic. they are a lender in the regulated apartment space that they dominate. less repercussions for the rest of the industry. that being said, commercial real estate worries are front and center for the entire group. there will be some lucky performance in 2024 and beyond. katie: really appreciate your

time and insight. let's keep this conversation going with sarah hunt, strategist at alpine sax. let's talk about the systemic part. how concerned are you that this is the beginning of something broader when it comes to what we are seeing with the regional banks and cre? sarah: we have panic over this issue that was going on with silicon valley bank. that was more about the assets they were holding on their balance sheets. now we are dealing with the fact that you have an asset class that is overvalued relative to where the current market is, both for rents and occupancies. how big does that become? people have argued about the size of the office commercial -- commercial real estate market. education will not be the problem but the problem will be acute in specific places.

that is going to be difficult for lenders. the biggest issue this time is profitability as opposed to banks going under. depends on how big the stop -- cats have to be. katie: sounds like that is a story we will be following for months. but you talk about a you pain, isolated issues. when you think about the broader market, do you see any risk of spillover beyond regional bank stocks? sarah: there is always risk of spillover. in september and october of last year when the market was looking shaky, the ai story saved the equity space. if you have investors that are looking for something to hang their hat on, this could be something people could point to. there is other things not going as poorly. it depends on when and how badly this rakes and -- breaks and

whether you get a larger effect. right now, it is still small, but it could be a butterfly depending on the timing and what else is going hundred katie: more on the psychology of this market -- in addition to new york community bank, we have earnings season rolling on and it has been a next bag so far. -- mixed bag so far. do you think this is a market looking for that negative news story? sarah: it feels like a market that wants to go higher. mid december last year, chair powell said we are done with this and we think the risks are not to the employment side and we want to become full. that gave the equity and bond markets time to say we think the fed is done. there was enthusiasm now we have had pushback. kashkari set two or three as opposed to the market pricing in sex. if the market wanted to be negative, it would get fearful.

it does not feel that we yet but these things can turn on a dime. katie: of course, the memories of march 2023 are fresh in many people's minds. do you feel the temptation to go into some safety plays? reach for haven assets? sarah: we still like to. it is hard to get away from tech. the idea was that the magnificent seven would not be driving this year, then look what happened. what we are trying to do is make sure we have representation in parts of the market that we like. if rates are coming down, utilities are not as bad as they could be. there is other opportunities in other parts of the market but at the same time, what is driving

the market right now is still on the momentum side. that does favor some of these sectors. katie: favoring somebody sectors that we are already in favor of that sounds like tech. we had stiller results for just a couple of names, not so much if you look at other areas within the seven. is that enough to sustain this momentum? sarah: if it was not, you would have seen some of them stocks that did not have fantastic earnings have or negative reaction the. for some it was good enough. for some it was much better. the world will be watching nvidia closely but it started to look like you are starting to see revenues hang on ai. that was the biggest question. if the answer had been that none of those areas are generating revenue, that would have been more of a problem but the way the stocks reacted, unit of the news was mediocre, was not a

disaster. that shows you that there is room to stay where it is if not expand. katie: health care and energy next but let's look at what is moving underneath the surface of the markets. abigail: one stock that is moving in an interesting way is tesla. shares had been higher earlier. this after tesla seems to be getting philosophical. elon musk, known for his work ethic, has asked his managers to say yes or no on employees. are they critical arena? -- or not? their headcount has doubled since 2020, 8 times since 2016 as revenues have stalled in the last quarter versus many quarters up more than 40%.

profits down last year 29%. that is one reason. katie: i do not know how you would answer that question other than yes i am essential and productive that is interesting. we will see whether it does mean layoffs. what else? abigail: snap having its worst day since july of 2022. beneath the surface, it has to do with the fact that earnings are falling for a third year in a row. they have made workforce adjustments. last year, investors were looking for the plus revenues a small miss. pricing down 2%. if you look at active users, they did row 10%, but that was north america and europe. other areas of the world not as impressive. investors want more. katie: that is a biblical move

lower when it comes to snap shares. it will be an interesting conversation as we start to see other social media companies report that. ad spend, seems like a lot of existential questions that need to be answered. tell me about viad corp. abigail: another disaster. this quarter worse than feared. the stock down 85%, bad porter. -- quarter. because it is in such a world of pain, worst day since october of last year, management not willing to give a detailed outlook. north face brand a problem. ceo says they are evaluating strategic growth options for the various segments. it will be interesting to see if they try to sell some of those brands or make some sort of restructuring. katie: great earnings season so

far for some, punishing when it comes to others. coming up, disney, fox, warner bros. teaming up to create a sports streaming powerhouse. this is bloomberg. ♪

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night. disney, fox, warner bros. teaming up to launch a new sports streaming service. let's get some insight now. set the scene. i was surprised.

what are you making of this? geetha: definitely a surprising moment. we knew espn had something works but we did not expect to see big media band together like this. i think it is a good move for these companies and will be positive for them. this is big media standing up to the attack companies, -- tech companies, which have gotten aggressive in terms of sports rights. they are taking control of their own futures. they have always controlled content and production but now distribution as well. katie: i want to talk about what this means for cable. you look at charter, down by 2% this morning. it feels like one of the rallying cries for why cable still makes sense is you have live sports but what does the future look like now? geetha: big question.

we will get more answers once we know what the price of this new service is going to be. they have to be careful to price it at a point where they do not cannibalize existing revenues from the linear tv bundle. if you look at fox, warner bros., disney, they are heavily exposed. foxconn's almost 80% of its revenues from the pdb bundle. they have to price it attractively so it appeals to hard-core sports fans but at the same time not jeopardize their own future with the linear tv bundle. pricing will be key, $40 to $50 range is the warmer but we will have to see. katie: we just got these headlines in a couple of minutes ago that netflix is relating two projects with the boston red

sox. they will follow an mlb team over the course of a full season. it feels like this folds into this conversation about how media is handling sports. geetha: absolutely. this is exactly what the big media companies are fearing. you see netflix. they went after that wwe content, paying $5 billion over 10 years. you see more and more sports content, documentaries. it makes sense that the media companies band together. it is a good, defensive, strategic move as the big deck layers try to get into their space. katie: really appreciate the instant analysis as always. let's welcome back sarah hunt, partner and chief market strategist at alpine sacs and blood. let's talk health care.

you mentioned there are opportunities in health care. i think health care, right now, i think weight loss drugs. is that what you are looking at? or is there room to grow beyond that? sarah: there is a variety of answers. there are discussions about how some medications in the longer-term can change the face of health care. part of it is navigating that system currently -- and how it might fit into the system in the future but you are still going to hear about health care issues that are not going away. you have an aging demographic and other health issues not addressed by these. there is opportunity in this space but one where you have to be careful how you are navigating it and whether any of those big movements can make a change in something else you do not realize has an ancillary area affect.

katie: it is not waistline -- weight loss drugs are disrupting retail but also health care. a lot of health care stocks had a terrible year last year. but when it comes to health care, sometimes people say they see potential m&a opportunities there. it is an industry that is right for consolidation. is that part of your call? sarah: it has to be. if you look at the last five years, you had such disruption in health care, both in delivery and utilization. you had a lot of people put off a lot of angst because they did not want to go to a hospital. we are still not through that. that is still an issue, which is why it has been difficult to gauge health care ahead of time. some insurers may have issues because you had a lack of utilization because of -- for a couple of years. within that there should always

be opportunities and i think there will be m&a. katie: on the topic of overlooked opportunities, let's talk energy. you take a look at chevron. record production in 2023, brought back 5% of its stock. looking forward, it has rosie projections. chevron valuations below that of the broader s&p 500. how are you thinking about energy in this market? sarah: this has also changed. energy does not matter until it matters. people either ignore it or it gets a smaller part of the s&p when other things are more important and there you have another three or four years behind us of uneven demand and supply the higher than anticipated that is partially

because a lot of the sanctions did not work. you still have an excess of supply which means people are ignoring the space and there is this assumption that we will go from hydrocarbons directly to other types of energy without building and the fact that the physics take longer to play out. the idea that the market will come to an end, where as we think there is a longer tail. you have to trade positions and look at things that you like. you are more likely to see dividends than you used to be. there is room in there but then you have the wildcard like this lng issue that can disrupt the space. katie: the point on supply is so important. even with all the geopolitical issues we have been talking about, you have not seen anything overwhelmed that supply story. you make the point that the lack of longer-term investment will constrain supplied we are not there yet. what timeline are you looking at?

sarah: i would have thought that we would have been there sooner but the fact that you had so much u.s. onshore production, historically speaking, most production was offshore with longer lead time projects. in the u.s., you have so much backlog of drilling that the minute there was any issue with supply, everybody was looking at higher oil prices and going, i am got it. for years, there was this wildcat out this fear about oil production where you could get capital anytime you have -- had -- that was a surprise to a lot of people. katie: the u.s. becoming a powerhouse when it comes to energy production. we talked about tack, health care, energy. where are you avoiding right now yeah sarah: -- right now? sarah: some areas you have to be careful with, one is valuations.

even though we like cap, you have to be wary. we like semiconductors but some of that has run a lot. there are places we want to be careful. even in places like energy, be mindful of the fact that you are making sure you are getting paid to wait. you have good dividend, buyback, company support. retail has been difficult to piece out. everyone is changing strategies. amazon is still taking share. there are places where you need to be careful. katie: feels like a trend shift seachange in retail right now. really enjoyed this conversation. this is sarah hunt of alpine. later today on health care, i will be speaking with the ceo of novo nordisk at 12:30 p.m. new york time. still ahead on this program, the companies making the most social buzz today. this is bloomberg.

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a look at the stocksthat is a s. you can follow all the latest buzz on the bloomberg terminal. coming up, the carlisle group overhauling dealmakers to free

up cash flow as it plans a buyback. we speak to the company's ceo next. this is bloomberg. ♪ y coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way. wealth plan can help get you there. ♪ j.p. morgan wealth management.

>> welcome to our bloomberg television and radio audiences. i'm sitting with an exclusive interview at carlisle headquarters with the ceo of carlisle harvey schwartz in his first interview since joining as ceo. you announced strategic updates. up the most since 2022. what is the biggest change investors need to know about the future of carlisle today? harvey: the movement in the stock is much more about seeing the momentum in the franchise. coming into the fourth quarter, the team came together and

whether it was regular -- record fre, fundraising, momentum into 2024 and the call behind strategic initiatives and financial targets for 2024 which have a very significant upward trajectory. sonali: we can also say you passed your first year on the job. the grace period is over. you are now looking into year two and a lot of people think it is a make or break year. harvey: 2023 as a new ceo coming in it really was about investing time with my teams and spending time with our investing clients around the world. 300 lps here and with respect to my teams it was really about me getting to know them and them getting to know me. 2024 is really about focus on

our priorities, excellence of execution and more teamwork. if we do those three things we will exceed our targets for this year. sonali: part of the updates you've made means you will change the way you pay, dealmakers you announced a $1.4 billion buyback plan. how does this change incentive for people who work at carlisle? -- at carlyle. harvey: what are the first things a senior investor said was want to be in more alignment with our investors. this is really about alignment across our stakeholders so it's her senior investors, our investing clients and our shareholders. as i said earlier it's really win, win, win. our investors get even more pay-for-performance and their

shareholders get an increased steady stream. sonali: carlyle's founders including david rubenstein has been famously involved in the succession planet carlisle. and they were mean large shareholders of the firm. how involved are they in the data proportions? harvey: i was very clear with the founders that i want to be -- i want the business. carlyle is an iconic brand. they have an amazing culture here. adding to know this company has been an extra ordinary privilege but having really their history, their clients, investing experience, as much as -- we will take as much as much as we can get. sonali: record related earnings. they went from 36% rise carlisle stock last year, rivals, blackstone, 70% or more. how do you keep up with that

stock it to match your rivals? harvey: i think of it as an output. focus on priorities, deliver performance, if we do all of those things the stock price will follow. sonali: how do you think about these areas that have been hot button issues. on one hand private credit is a big space for carlisle to bring in new money and show that in the fourth quarter. on the other hand there are questions about the industry at large but a lot of money is flowing in and whether there's opportunities to put that towards. how do you address those concerns? harvey: there's two questions that of come up around credit. one of them relates to systemic risk and i think a lot of those discussions are misunderstood. when you think about what we do as capital providers and how we provide that capital, it really doesn't have the characteristics.

we don't use significant leverage, it's not interconnectivity. i think the systemic risk discussion, in terms of deploying credit it is our responsibility first and foremost to our investing clients to deploy that credit in the best way possible and that's what having 20 plus years experience in this position. sonali: is there a risk of a bubble? harvey: whenever you see a lot of capital moving in the space you have to worry at the margin how that distorts the opportunities set, that's where the investment teams have to do their best work. they have to deploy that capital and they have to perform. sonali: you are seeing fears about regional banking, up once again in the market. using the conditions and the downgrades that it's facing. we think about the role of private capital and where

carlisle fits into the story, how much can private capital jump into the problems of the regional banking system. >> i think as capital providers whether it's our private equity platform, credit with solutions business i think this capital can be incredibly valuable and has proven to be valuable in terms of economic problems. i think when they think about banking crisis or a banking disruption, the best way to address that is with the most efficient cost of capital and of carlisle -- and if carlyle can be -- sonali: let's a commercial real estate for example there are a lot of fears the commercial real estate sector could be facing a significant crisis in the new york area. do you share those concerns? harvey: one of the fortunate things i inherited is one of the best real estate teams in the world. their performance over 20 years is truly extraordinary.

when i talk to them about commercial real estate, they start backing away from office many years ago. we see a real opportunity. i think there will be challenges but this plays out over many years because in some respects we can see this but it's a problem that will have to be digested over the years. sonali: part of this is being caused on the heel of higher interest rate. you've a market that expect higher rate cuts before the january fomc meeting next year. do you believe those five rate cuts will come to fruition? harvey: we have a pretty unique perspective on this because across our portfolio companies we see the data and the performance i would say that if you step back and think about historic fed behavior, the fed typically there is fine tuning

and cutting dramatically or raising dramatically. when we look at the data from our portfolio companies and look at strong gdp, unemployment numbers that are quite attractive and you see inflation has really stopped materially at this stage. i don't think we should be rooting for the flatter rate cuts. that would suggest an environment that requires a lot of attention from the fed and we should be hoping for fine tuning because the economy is in better shape than people are looking for and i think the fed has done a fantastic job navigating this. in our model we would expect the base case to be two or three cuts, the fed we expect to be very data sensitive, we are watching this closely. we will see what happens. sonali: what's the risk that we tip over from a soft landing or no landing into a recession. what would cause the tides to turn. harvey: remember, the fed has

communicated to us that they are watching this data carefully. hoping for multiple rate cuts i think is a little bit of a recency bias. it's people saying i enjoyed the qe we are experiencing, i think is a market participant they should monitor their own cost of capital and if we can get there through this process i think we get an extraordinary outcome and i think it would be great for these opportunities and great for investing clients. sonali: we are sitting here in washington dc today. before we get there you have a large presence internationally as well particularly when it comes to china at a time when there's a lot of questions about the world's second-largest economy, the strength of the economy and its relationship with washington dc in the united states. how do you view those challenges and how you navigate them as an investor? >> we represent investors all over the world.

we had different requirements. some of those they say the risk profile does not look like it fits our characters. many of the clients around the world really like the investment more than china and you bring up china and got a lot of attention because we sold our position to mcdonald's, i'm sure you saw it this was a tremendous return and one thing i will say is it really enhanced the power of our equity franchise. people ask higher rates, what does that mean for business? we look at that transaction as a near seven times return for investors just exited in this environment. it's really about picking the right partner trying to make sense in executing the business. sonali: what about the opportunities here at home. there have been large u.s.

investors, a lot of the big names sounding alarms about what's happening here. about the economy but the sustainability oval we are spending as a country. how do you view that from where you are sitting and coated spiral into a bigger problem? harvey: who are legitimate concerns. i will tell you when i traveled around the world last year i was told by investment clients that felt a bit over allocated to the united states and they said they will keep allocating more to the united states. sonali: what about that concern embedded with the dysfunction you are seeing in congress alone? how do you see this gridlock impacting investors throughout the year? harvey: i was just talking to one of our chief economists we had a discussion about this last week. the s&p 500 has gone through 23 election cycles.

in 23 election cycles roughly 80% of the time, democrat, republican, the s&p 500 has gone up. i would like to see us go through an election cycle and see everyone in washington really start to come together because we have complex problems. sonali: with the constant threat of government shutdowns for example do you think the road ahead could be bumpy particularly as we head to the election? harvey: if it's been like the ones we've had i think it will be good for markets. i don't think it is great when our politicians play ping-pong with things like the deficit. i think we should just focus on the business of the government. sonali: the election itself, obviously a unique alexion with two leading contenders having served in office recently. how do you see this playing out. both leading candidates in the democrat and republican party have low approval ratings. how do you think about this in the c-suite and the risks it

poses into 2025. harvey: we've been through complicated elections, surprise elections, i think we will get through the business and priorities of the day. sonali: we started this talking about the future of carlyle. by the time you are done leading carlyle, what ways will you have transformed the firm? sonali: i'm not -- harvey: i'm not thinking about being done, we are just getting started. we really came together. again, this is really as i said a focus on our clients, we focus on performance. it will be an incredibly important capital matter to people benefiting from that. >> it begs the question private credit, wealth channels, what is the future of traditional private equity? especially under higher interest rate regime. >> i don't generally make long

data predictions. i think private equity and capital will only grow over the next several years. the number of companies will want to stay private, the wealth accumulation in the world, the actual wealth that will move into the sector, the great appeals actually coming in and thinking about can i really have the impact i want to have it carlyle is about the trajectory of the industry. i think it's early days for private capital managers and we are on steady growth. sonali: it's interesting you are talking about the share buybacks, also the changes made at the firm. analysts were asking are you giving back too much money. how will you keep investing back into the firm? harvey: in terms of how we think about capital allocation, today was about defining flexibility. we think the enterprise value

isn't represented. we think that's the best department of capital, we will not sacrifice growth opportunities. it really just is efficiently allocating that capital. if we think the best opportunities in growth we will do it. if we think the flexibility provides an opportunity, but the balance sheet is strong. sonali: thank you so much for your time. for bloomberg television and radio. katie: our thanks to harvey schwartz, the carlisle ceo and bloomberg's sonali basik. new york community bank set to be in talks to offload its mortgage risk and planning to sell its recreational vehicle and marine loans. we are continuing to follow this

story after we learned yesterday that of course moody's cutting its credit rating to junk. this follows last week's event when the company announced it was slashing its dividend and stockpiling reserves to deal with the real estate risks. we know commercial real estate has been a big issue for the regional banks following what we learned in march of 2023. let's go to matthew who broke the story. what do we know so far? matthew: new york community bank whose shares have been stressed since cutting its dividend and having to set aside a surprising amount of reserves to cover its loans is taking some measures to de-risk its balance sheet through balance sheet management. it's looking at synthetic risk transfer for about five to $6 billion of mortgages. it's also seeking to offload a portfolio of rv loans and

maritime loans. it's important to note these were underway before the stress but the fact is moving forward is a sign they are taking the proper steps on the balance sheet. katie: good news is coming hot and heavy. this after we heard from the newly appointed executive chairman who said he was going to do what is necessary to build capital which could include selling assets and loans. matthew: if you look at the playbook for what a silicon valley bank did, what pack west was doing, you want to see what assets are sellable now and you don't -- won't take too much of haircut on. this is the play we've seen for banks that are stressed. katie: matthew, thank you so much. it's time for our daily wall street week segment. we will pivot from banks and take a look at the challenges and opportunities in the fast casual food industry from weight

loss drugs to ai. joining us is the panera founder , the chairman and lead investor and the author of know what matters as well as david westin. fast casual is very hot. david: food as well as dress as i understand it. tell us how do you define for yourself and everyone else the segment of the market that you are trying to own? ron: it is essentially trying to appeal to consumers who want real food, they want to be served in environments that engage them and people that actually care. what fast casual really is is aspirational in the sense that it's not processed commercial fast food but real food, better food and something you really want. katie: when it comes to fast casual can you differentiate between fast casual and traditional fast food because

obviously a kava or panera is different than mcdonald's. are those two sorts of restaurants in competition? ron: i think generally we are all in competition. and you you wake up each morning it's 11:00 a.m. and you say what am i in the mood for. and my the mood for mediterranean, hamburger, pizza. and then you say who is the best operator, what is the best experience i can get within my physical distance, two blocks in manhattan, two miles in des moines. then you go for that. the reality is this definition is a financial analyst term. it is not a term from a consumer. we are all competing for the same dollar. fast casual is a paradigm, an attitude, and approach. it's trying to deliver in ways

that fast food which has become processed and commercial is unable to do. david: it's a fairly crowded space right now. how do you build a moat around it? is it by transformation? what's the next transformation for you? ron: mediterranean. let me take your question and go backwards. it starts with these niches and categories. people choose the establishment, who has authority in each of these categories. let me ask, who has authority and serve -- third wave mexican? it's chipotle. who had authority in soup, salad, sandwich. who had authority, mcdonald's, not burger king. the reality is what we want to do today and as we look to the

future is defined what are the niche categories that five years from now we will have tailwinds. who is going to have the dominant brand in that category. think about mediterranean. five and 10 years ago the best mediterranean with kava, it did not take a great deal of analysis to understand that mediterranean was going to be one of the most powerful niches in the industry. it's about bold flavors, creative and new flavors. and yet safe and someone can enjoy. so you define the category and then you want to have the dominant player in the category, what we are doing in my investment vehicle is essentially investing in categories first, and then because we have the capabilities we are able to help these businesses become the dominant

player in that category. katie: i want to talk about what you are seeing in categories because you want to be specialized and you don't necessarily want to go against the incumbent in a category. where else is there white space right now? ron: we want to own the category. everyone of these categories has a winner takes all winter. think of mcdonald's versus burger king, panera versus corner bakery. we want to be the dominant player in the category. we've invested in mediterranean, it's a significant investment. look at a secondary we are invested in, 3% of the market vegetarian, 4% trying to eat more plant forward. tell me there isn't a powerful opportunity. nobody owns it. we have a brand called life alive which i believe has the

potential to dominate the category. third area is upscale middle eastern infused bakery cafes. some of you may know it from boston, washington, dc, it's coming to new york. it's a powerful category which is a niche of the broader bakery cafe segment which brings the flavors of israel, lebanon, turkey and the authority of third wave coffee establishment and then we couple that with real chefs. put that together you have a powerful concept, we will have 40 units, build that out and that will be a dominant brand in that category. another one we are involved in is immersive entertainment which is essentially the combination of food and experience. we have some difficult level 99. this is challenges combined with

a farm to table restaurant and brewery. 45 challenges paid some mental, some physical. it's really for 18-year-olds to 50-year-olds, it is powerful stuff. again a powerful category that could be the most powerful we've invested in. among the most powerful categories to build the dominant category. david: talk at the macro environment that is shifted. with how much of to pay the employees. where are you feeling those pressures. ron: we have -- but let me broaden and let me speak to what was just said.

we have doing -- been doing this for 40 years, we seen everything, and go. the reality is the ability of a management team to succeed in all different conditions. what i can tell you is i'm not the pond into will tell you where the economy is going to go. i will tell you whatever we face we will figure it out better than the next guy. we will deal with that, if we have investment costs, capital costs. katie: we only have about a minute left with you. i'm talking about weight loss drugs, the talk of the town when it comes to every industry including the likes of retail, etc.. how are you thinking about how it will affect the fast casual industry? ron: we are talking maybe a couple percent of sales. like everything else it will be

integrated into how we operate. i can tell you we are not having a lot of meetings, all of the new drugs i can tell you that generally we work it through and will make it sure -- will make sure we have food people want. the reality is the food industry is the second oldest profession in the world. it's about serving people, taking care of people. it is here and it will be here and smart management will be able to deal with what comes down the pike. katie: i won't ask you what the oldest profession is. chairman and lead investor at kava. david: tomorrow we will go from food to books and talk with the kkr cohead of global private equity. pete's tavern roast with jonathan carl. as well we will talk about on

friday, julian salisbury. katie: thank you so much. much more ahead on bloomberg technology. this is bloomberg. ♪ get help with j.p morgan personal advisors. hey, david! ready to get started? work with advisors who create a plan with you, and help you find the right investments. so great getting to know you, let's take a look at your new investment plan. ok, great! this should have you moving in the right direction. thanks jen. get ongoing advice; and manage your investments in the chase mobile app. 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.

caroline: i'm caroline hyde in new york. ed: this is bloomberg technology. caroline: snap plunges after earnings disappointed and the company cites a challenging operating environment for the full-year parade we have all the coverage ahead. ed: tesla staff bracing for layoffs as managers are asked binary qu