katie: 30 minutes into the u.s. trading day on this thursday, february 8. here are the top stories we are following. s&p 5000, all eyes on a big round number as stocks hover near yet another all-time high. we will break down what got us above that mark. disney and arm sending shares higher. they really embrace the strong showings. we will take stock of what is ahead. we also have a consumer check, personal spending with the ceo of edge well. ♪

katie: welcome to bloomberg markets. look at these markets, we are waiting to get above that 5k mark for the first time on the s&p 500. it's not happening right now we are pretty much unchanged on the big benchmark but you take a look at tech pretty much the same story. the nasdaq pretty much flat on the day. a hair or so higher. volatility rising a little bit, but we are below 13 so that's important context. you see disney, shares are soaring right now currently out almost 10%. we will continue that conversation on disney because the media giant reported. the ceo joined earlier to talk about the company's new joint sports venture. >> the purpose of the venture is purely distribution, it's not about content. we will compete with sports desk for sports rights. it will be a great benefit to

the league. but that reduced friction benefits all of the leagues as well. i think the leagues will be pretty optimistic about this. katie: here now with more on the outlook is bloomberg technology cohost ed ludlow. the sports venture is exciting but earnings enough when they reported last night was exciting. is the magic back for disney? ed: you nailed it. this is the bob iger story. a lot of people were impressed with his performance on the call but the reality is when you look at the particularly the profit guide for this year, it's not the result of fantastic content or wonderful rides or magic, it is cost discipline and cutting. that's allowed them to boost their eps outlook this year by a notable margin and it is evidence that the plan the -- that bob iger outlined has

worked, although the kind of bonus feature, the extra bit at the end of the credits is the deal they did with epic games because the videogames industry is joined norma's relative to the streaming industry. what they are getting is also a distribution play like with the sports deal but a huge catalog of content in the domain of video games. katie: let's talk about how this sets up bob iger for potential activist investor fights. talking about trion, etc.. ed: there are loads of tongue twisters. whatever you want to say but it gives him ammunition to go back and say this is something investors normally like, a real big outperformance on the bottom line. you look at the top line, he missed estimates just. so he's eking out these numbers on the bottom line while the risks flat growth for the top line. katie: we also have to talk

about arm, one of huge -- two huge stories. what's going on? ed: this is a vindication story for rene haas. it licenses the underlying code that allows a semiconductor to interact with software it's intended to run. they've moved this business away from smartphone. it was all about smartphone historically. it's one third of the business and what they are saying is our technology is ending up in not just more places thinking about server design, automotive for example but the value of the technology is going up. there can be great levels of royalties and we are not quite at the ai story with them yet. that's a question we have deposed. they are getting towards the read through effective a big buildout in infrastructure related to ai. katie: you take a look at arm

shares right now currently up 53% just incredible. that's ed ludlow. he has a great interview coming up. the arm ceo will join in the next hour. let's look at the markets and how they are digesting all of these earnings. joining me is the chief global market strategist. as you point out in your notes we are just about halfway through earnings season and it feels like when we look at the fundamentals most companies have beaten on earnings. then you take a look at how far we've come on the s&p 500 just below 5000. is what we're hearing from the actual companies enough to push us above that mark? >> it is tantalizing and i do think it is enough, it's more than enough because it's what investors have been waiting for is confirmation this is being matched by the consumer spending

and that is positive and that's what we are seeing. even if numbers of fallen short of that in projections are very positive going forward. there's a bit of caution. for the most part it's ahead of expectations. what can it take us there is the wall of money we are still building in money market funds. as interest rates come down we are over the 6 trillion mark right now, that is a lot of dry powder. katie: you think about cash and the bid for cash is one of the things we've really had to rely on over the past two years. it's been very steady there. $6 trillion in money market funds. you're saying that belongs to risk market asset, it's not going back into a bank account necessarily it's going into the soft market? aoifinn: i think so. bank accounts never passed through those interest rate rises to the customer in the

same way. if interest rates are coming down that will probably look relatively less attractive. i think they will start looking at long substitutes such as the income generated stock or perhaps defensive stock. it doesn't necessarily go to the risky form of assets. the stocks that have actually locked relative to bonds, they are the ones that are really underperforming the market weighted index right now and that's probably where they will start looking. katie: let's talk more about that money comes back into stocks but what's good to be the driver of stocks going forward if risk of risk assets going forward. what we're seeing from these companies, the corporate fundamentals or is this a macro trade? aoifinn: it's a macro trade around the tech stocks for sure. when it comes to anything ai related can be explosive in terms of the upside. we can also see expectations are priced to perfection. something like snap is citing

the concerns around privacy and clearly for prescriptions users were up, cost of acquisition were down. at the same time it wasn't enough to satisfy the earnings. there will be a lot more discrimination in there. i think overall it's likely to drive markets is what your correspondent cited as not being that magical. actually in an environment with the inflation has been where it is that cost discipline seems pretty magical to me. i think other companies can generate that that will be rewarded. katie: i want to talk a little bit about how earnings reports are being received. we have some great data, you look at eps feeds, the average one-day performance following that is a rise 1%. you take a look at how traders are trading companies that weren't able to meet expectations that missed and the average punishment is a 4%

decline the following day. that is the biggest one day reaction. how do you square those two things. those, basting disproportionately moving but also disproportionally punished if they miss. >> i'm more focused on the 4% number and that's where we get the pricing for perfection phenomenon. because the appetite which has been surprising. we are forecasting recession, a steep change in investor sentiment, because cash was king again. very little of that actually transpired. so because of that, getting a little bit uneasy even with tantalizing -- a little uneasy with what we keep thinking about. and the concentration and the lack of breath. when i see that downside volatility down 4% it doesn't surprise me. there is still a lot of nervousness out there about the recession that's yet to bite. >> you're sticking with us.

that is ethan. let's look at some of the other earnings related movers moving big time today. we will do that with bloomberg's emily standing right beside me. >> i'm looking at apollo rising about 2% after the open. they had an earnings be for the third quarter came in that $1.91 versus estimates of 172. and where that came from his higher interest rates because that boosted the credit and insurance business. i'm not sure if you heard katie that we are in the golden age of private credit. it's a running joke. there's some truth to that end apollo seems to be benefiting from that over 80% of their assets under management are in their credit businesses. katie: we talk about who loses out from higher rates but certainly places like apollo are cheering that on. another earnings story, this one involves artificial intelligence. emily: monolithic power systems,

they are a 30 billion dollar company and produce semiconductors that are used in electronic power systems and this one caught my eye because they were up 82% in 2023 like every other ai stock. but the momentum seems to be continuing for monolithic, their fourth-quarter results be coming in at $2.08 per share. they had a higher forecast for the first quarter. katie: that's the ai story when it comes to monolithic. i feel like there's some sort of super bowl angle. emily: there is. citi raise their price target on wynn resorts and mentioned they would probably get a boost from the super bowl which is in las vegas and they will see more foot traffic and hopefully sold out hotels. just looking at their earnings

they beat expectations, the stock is up about 7%. 6% right now coming from the recovery in macau but also strength continued in las vegas. it is the exact same adjusted eps for apollo. katie: very poetic note to end on. thank you so much. coming up, arm hits a 52-week high. we will take a look at what this says about the broader sector next. this is bloomberg. ♪

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senior semiconductor analyst for bloomberg intelligence. he joins us now. i get that it was good, they gave a strong forecast but wasn't good enough to justify a 55% surge in the shares. >> it sure helps with the sentiment on earnings season. or at best slightly meeting expectations. there were a number of positive things to highlight from this report for quantity and quality earnings perspective. i think the key point is they have a multiple plethora of tailwinds helping them with the next fiscal year and we expect this beat to continue. katie: a lot of hay has been made about the fact they've been diversifying beyond semiconductors and pushing into other markets and other areas such as server chips. where are they in that timeline? if you take a look at smartphones it's about one third

of their sales. kunjan: that is really good. when you look at the typical smartphones it's been very hard for them in fact most of them are going and increasing their smartphones. that's a very positive sign. all of the new latest wins whether it's nvidia, whether it's microsoft, amazon and a few others which of not been announced yet. a lot of those will be showing up in next year's fiscal number. so that will help with the diversification. what we saw given their licensing numbers was also all of these new sort of ai design posts. which are outside the smartphone. i think we feel pretty good about that. katie: a lot of look forward there. if i was looking to get upset and worried about something in this report where would i find it if at all?

>> when we unpack the earnings and offer up the positive which were a lot. i don't want to take anything away. they found a few things not about getting worried but keeping in mind. one thing is when we look at the quarter beat, most of the growth was driven from china revenues. that something to keep in mind. second when we look from the licensing, this is not something they expect to continue with this fund rate. licensing will always be lumpy. when you see a lot more licensing for sign-ups currently. you expect some sort of decline sometime next year. those of the two things people need to pace themselves. >> really appreciate you waking up for us on the west coast. let's bring back into this conversation the chief market strategist, you have the arms of

the world surging. and then you have snap for example tumbling 30 5% just about yesterday on the heels and we talked about this a few minutes ago that it feels like the haves and have-nots within the technology sector broadly defined which includes of course snap in addition to arm. how are you thinking about it as a whole? >> this year has been described as a transitional year. we've seen that coming out of financial institutions and for tech. there are cycles, product and consumer cycles that are so much shorter than before. we can see this in terms of how money flows into different asset classes and how much ai for example has taken off in the past year and really how consumers are recycling through different products. so because of the short cycles it's very possible for something to all of a sudden fall out of favor quite quickly and that's what we are seeing.

this is the best of times in the worst of times all at once. they need to keep who the winners and losers are when it comes to subscriber growth. katie: the attention spans on the product cycles shortening up. let's look a little bit more at what's happening on the advertising front because you think of what drove snap down by that much and it was paying money when it came to advertising revenue. we are halfway through earnings season to go, we have social media names coming up. pinterest reports after the bell. you think this will be an issue for other companies that rely on advertising revenue? aoifinn: yes, i think advertising spend will be a lot more selective. it will be looking for results even though we are seeing relatively decent margins with companies very much on nondiscretionary because of how inflation was heading and concern around the cost of labor and because as you mentioned

this emphasis on cost culling and how much investors are focused on that. advertising seemed to be discretionary spend but because of consumer taste moving around there's always attempts at efficacy. even the streaming news we had yesterday streaming services have struggled. it is harder to generate some of that revenue. overall it's going to be a mixed picture and a bit of a zero-sum game on the advertising front. i don't expect overall spend to be increasing but we saw gains at the expense of something like a snap. katie: we are seeing cost discipline across industries now. let's talk about returning capital to shareholders. you've seen companies boosting their dividend including disney. when it comes to meta- introducing its first ever dividend how much do you pay attention to that. aoifinn: it's a milestone in a way of having a high tech tech stock.

is this the end of growth as we know it. is that changing its profile to more generating defensive stock. i don't think that's the case but it is notable. we are seeing that around buybacks. we see some buybacks be canceled from shipping stocks in europe. it's an indication of the geopolitical forces as well as supply imbalance has made things challenging there. we've seen buybacks go ahead in the case of unilever in europe. really mixed picture depending on company fortunes. we look at that as an indication of the forecast and how it plays through. >> talk to us about the unilever's of the world. we spent a lot of time focusing on the u.s. consumer and the international consumer. when you weigh the results we've gotten so far and where the fed is in their tightening and potential cutting cycle, how does the consumer stand up now. aoifinn: obviously the unilever results are that the consumer is

very resilient. they are spending money on name brands which again is a notable thing because they would been trading down perhaps to generics are lower-cost substitutes. the fact that they are seeing robust growth there is a solid sign they're following through into demand. we are discussion around lodging companies and the durability of that travel spending but we are seeing. i'm confident the consumer as long as the employment picture stays strong and particularly with interest rates heading down at least into the second half of this year whenever that happens, mortgage rates start to come down if there's a little bit more wiggle room in that respect i think we will see an enduring consumer. katie: before i let you go, put together what we've been talking about when it comes to tech and some of these consumer needs and what we are seeing with advertising spend, where are you seeing the most opportunity? how do you want to design a

portfolio around these cross guards question mark -- cross guards? aoifinn: that core portfolios are what investors should be focusing on. we don't want to be over concentrated in tact. by the same token we don't want to call the top of the tech market. having that broad-based exposure as well as high-growth sectors makes a difference. before you are citing the explosion of private credit. we've been big believers in having a well diverse portfolio which includes private credit as well as private equity. i say absolutely the portfolio construction is the same as before plus in the sense that we are starting to see much more maturity and interesting opportunities in that alternative end of the spectrum. >> it is the golden age of private credit. really enjoyed this conversation. now still ahead looking at the

social buzz today. social climbers up next. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh j.p. morgan wealth management knows it's easy to get lost in investment research. 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.

katie: time for social climbers. a look at the stocks making waves on social media. first up unilever reporting earnings ahead of analyst estimates. the european food giant as inflation encourages shoppers to buy more. we have under armour raising its outlook for earnings. the athletic wear maker spent the past several quarters adding rid of its excess inventory. the ceo in the midst of a three year plan to prioritize womenswear and footwear. paypal expecting earnings to be flat as it continues to cut cost and streamlines its operations. at 9% of its workforce falling quite mightily. the latest company buzz on trem

go on your terminal. we have the ceo of edge well joining us next. ♪

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>> novo nordisk plans to beef up its supply of its blockbuster diabetes and weight loss drugs. i spoke to the ceo on the challenges he's facing trying to keep up with rampant demand. >> most likely will see a number of years were demand could be larger than what we supply. so that's a very attractive growth opportunity and what we do now is we try to take care of patients with treatment and have a number of starters to make sure they start treatment for positive earning for high doses and get to the maintenance dose.

we are scaling capacity significantly but most likely demand will still be big. katie: how does european demand look like for -- compared to american demand. >> we saw the u.s. a very strong uptick, we saw the same uptick in those are markets where the reimbursement so it's out of pocket. typically in europe you have not seen a high out-of-pocket pay for medicines but with obesity you've tried all kinds of different interventions that you're paying for and most likely not succeeding so now there opportunities for getting strong weight loss and the price point is one that many are willing to pay for our products. so that's a very favorable situation. we are still trying to make contracts with health care systems because when you look at the socioeconomic aspects of

obesity, those who need treatment the most to cannot afford paying out-of-pocket we want to make sure we have comfortable here -- health care systems and they are also some of the patients with the biggest cost burdens. so it's quite meaningful for that population. katie: that was part of my conversation with the ceo of novo nordisk. another company we are keeping our eyes on. edge well shares the companies after beating profit and sales estimates in the first quarter. joining us now is rob little. so you reported yesterday seen the wall street price targets raised in reaction to that. i want to talk about the international consumer because if you look at the earnings, edge well saw its international business outgrow the demented u.s. business by proximally double the rate. a lot of that came from germany and japan.

is that international strength or u.s. weakness? >> good morning. it's good to be with you. it's more about international strength in u.s. weakness. let's start in the u.s., drastically in the u.s. our categories are healthy at the low single-digit rates. we expect to grow in line with the categories this year, u.s. to mystically. we see growth domestically here in the u.s. so it's not like there's an issue here in the u.s.. but outside the u.s. particularly some of the asian markets and latin america we are still seeing the recovery out of covid traveling -- as travel turns back on. we have a global shaving business, sun care business. people are more mobile going back to the office more regularly. some of that is still playing out internationally for us. the other thing that's happening internationally is we still have more pricing power so while we have categories growing, we also

are still taking some pricing internationally that's coming in now and was frankly delayed versus when we took it in the u.s. which was 12 to 18 months ago. so all that sets up well for a healthy consumer globally, pricing power and also more category growth outside the u.s. on average than we were seeing domestically. we see everything growing. katie: that there's more overseas than what's left in the u.s.. when it comes to that conversation and coming out of covid it sounds like what you are saying is the rest of the world is maybe two to three years behind where the u.s. was. >> in some cases and primarily it's driven around mobility and tourism driving demand for us primarily in son care. if you think about what's happened with behaviors and practices, versus pre-pandemic people are outside more weather

at the beach or the park playing golf, you name it. they are spending more time outside. the other thing that's happening is people are more in tune to their skincare and health and wellness. and the number one major of skin is sun exposure. so sunscreens being used. as we really get travel and international travel fully reopened which last year was the tick up. we benefit from that because most of our son care business outside the u.s. is around tourism destinations with banana boat. we are seeing that it's -- shaving is also around mobility as people get back to their real normal practices around how they will be social, the amount of time they are spending in the office. we just groomed themselves more frequently and we see incident rates go up around how often they shave. katie: if you're in the office

more you shave more as a guy? >> generally that seems to be the practice. even if you're knocking to go all the way to clean-shaven, bb you will shape your beard or your facial hair in a different way. recently there's lots of tools out there tell pugh do that great some of the category growth shaving so alternate forms versus the traditional. latent razors are still growing but we are seeing some of those nontraditional forms around tremors and other ways to shape the beard being a growth area for us as well. >> a lot of people found himself during the pandemic especially when it came to the facial hair. let's talk about shave because the standout international but you look at the u.s. and organic sales were down about 2% in north america. in august you had said you would talk about those changing habits saying maybe people were shaving lasts maybe they were taking longer to replace their blades and that might be driving the

dynamic there. is that still the case or are you seeing trade it down or other behaviors to follow? >> we are not seeing any trade down within shaving and we have a unique portfolio in that we play in every priced tear and every segment. so the systems business for both men's and women's shave is the most expensive part of the pricing ladder which is traditional. and keep the handle. disposables is below that in the price tear and then below that there's private labor and we play all of those price tears. we are not seeing any meaningful trade down by consumers. increasingly we are not seeing people lengthen the time of how long they will use the cartridge or disposable razor. so that's always a fear when the consumer gets tight that they will lengthen the time that they use something and go replace it later. we are not seeing that.

one of the things that drives consumption demand in our category is employment. we have employment healthy and very full that leads to good consumer spending and everyday use categories that are fairly priced. we are not seeing the trade down but it's something as we look forward we are looking towards that. we are well-positioned if it comes. katie: i'm also curious to get some color around feminine care. sales down about 11.2% in the quarter. i know you've had some struggles in that segment. what's the path forward for you? rod: we like our brands and our business. we have new strategy in place for the business three years ago. we are on that strategy and had a nice last year. this is more about one quarter cycling in prior year that had some one-time things happening in it. our trends have not changed in

terms of consumption sellout in the quarter just finished what was different is we had double-digit growth, behind a situation where some of our competitors were out of stock and unable to supply and fulfill orders primarily within tamp on space on a category that's disrupted since the beginning of the supply chain. in our quarter one a year ago we had abnormally high sales as we were filling in some orders for some competitors that were out of stock. this year as we cycle that if you put those together we are up about one or 2% on the quarter with what looks more like a two-year stat basis. that's that and as we go forward for the next three quarters we are confident that we will grow and have results in our femme care business. we have really good innovation coming particularly on the liners business. >> we will keep an eye out for that.

i also want to talk about the potential for layoffs. you've seen an announcement from brands as well as kimberly-clark as you look forward are layoffs something you are considering? rod: they are not currently in our plan. we try very hard to stay efficient and look at productivity every year just in how we look at how we run our business. so that we don't get into a position where we need a program to go drive a bunch of layoffs. we had one of those historically in our past, the energizer business was not fit to win. so we had a program back in 2019 to address that. we think we've got a staff in the right place on manufacturing plants and also in our office headquarters locations. we look to be productive every year and avoid the programs. we are not immune to that certainly if there's a shock that hits us. we also think we are well-positioned for the labor force we have in place. >> really enjoyed this

conversation. that is rob little eventual personal care. get a quick check, we are marked -- the s&p 500 now this is below that magical 5000 level currently down about 1/10 of 1% so not too far away. the nasdaq 100 holding steady. big tech flat on the day. we are the heart of earnings season which brings us to the philadelphia semiconductor index. we know arm is having a riproaring day and seems like the rest of the sector is enjoying the fruits of their labor as well. coming up about 1.5%. we look at the bond market, it is pretty quiet. built up three basis points on the 10 year yield. a record large auction yesterday of 10-year note which went over pretty well and the party continues today. a thirty-year auction of treasury bonds prayed we see how that bowls over. it appears the treasury is having no problem so stay tuned

on that one. kkr's $1.6 billion deal to buy simon & schuster. we hear from oath companies about how the acquisition came together and the future of book publishing. that's next and this is bloomberg. ♪

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katie: it's time for our daily wall street week segment. we are looking at kkr's deal to buy simon & schuster for $1.6 billion. also looking at how this could help streamline the book publishing industry. david westin spoke with the kkr partner and cohead of private equity as well as the simon & schuster president publisher. >> it is more stable than you might think so book publishing, it survived the internet, they survived mobile in a way that a lot of old-line media businesses have not and industries have not. if you look at the content library, companies published everything from the great gatsby did catch 22, you cannot replace their content library. you've got this base of stability.

what gets us excited is it was this unloved gem of a business it did not get an investment, a lot of attention so we looked at it and said can we do more with audiobooks, what type of operational improvements could there be. forecasting demand for a new book is really hard. how many cops -- copies will be sold is difficult to predict. we think there's a way to bring more science to that and shrink our supply chain and be more responsive so we are not producing access books that and getting thrown out. employee engagement the 6000 employees fewer than 5% had ownership. around employee engagement and ownership. what's possible if we become the destination of choice for editors who are effectively talent agents for authors. what this could all unleash in being the only standalone book publishing company out there, this could be a big deal.

>> what does kkr potentially bring to the table? >> the idea of giving all the employees a piece of the action the idea broad-based ownership has really energize the company and i think it's got all of us working together. i think it was a jolt of excitement going through the company when this was announced. i really credit pete with being an advocate for this idea. because it is attractive, we've already been able to hire some marquee editors and as pete said those will attract part of the business. >> they want to work harder because they have a piece of the action now. if you get those marquee editors does that bring in authors? >> it is a hit driven business on the front but now about half

of our sales are coming from backlist, books that have been out for more than a year and so you want the best editors to attract the books that will last and the books that are lasting or easier and easier to sell because of digital marketing. so it's a much better business than it's ever been because we can instantly sell books through e-books or audio, the other part of the business that's exciting is audiobooks because spotify has gotten into the business, audible and apple are already there. with spotify getting into the market it's -- our books are reaching an entirely different audience. when you think about it only about half the people in the country will buy a book in a year. the people who are listening to spotify may be music listeners, people who aren't into the habit of reading. when we publish the britney spears memoir we set records on

spotify and we've sold over one million audiobooks of britney spears. so that's a very exciting development for the business. david: i was wondering ways, part of that it sounds like new forms of media. what are the margins on that. you can make as much money off of that as a book i assume. >> we are not to talk about the margins but the distribution is frictionless. so there are no returns on audiobooks no returns with e-books so it's a benefit to getting books out there to the public and it's also instant. you will always be able to find it if you're searching for digitally. it's not as true when you go to the local bookstore. david: we've talked about ai, how does that help you with publishing? >> it could be a tool to make authors and editors more productive. what's not can happen is we are not can it go start writing books with ai. it could be a productivity tool,

there is so much that is unknown so we don't know exactly how it might help us be more productive in the future but it's something we are thinking about studying. katie: that was pete stoffer rose, kkr partner as well as the simon & schuster president and publisher. joined by david westin. we were chatting about this in the break. you don't necessarily think of book publishing is a big growth area. david: you don't think about book publishing. typically what you hear his book publishing is not a good business and that's why i was curious to say why did you want to be in this business at all. he think there's money to be found and also simon & schuster is iconic. it's been since 1975 it was not owned by a conglomerate. part of this was for the first time since 1995 will be focused on book publishing and there's money to be made. katie: calling and unloved gem. i would imagine that's very attractive to the likes of kkr.

interesting to hear from jonathan karp what simon & schuster is getting out of this deal being able to hire more and plan on how they are going forward. david: employee ownership is important. particular manufacturing companies, giving people a piece of the action and giving them incentive. also a lot of transparency and it's been very successful at giving more productivity and having more success. they are taking it publishing which is not really been done before and we have to bear in mind simon & schuster has been through a tough period, paramount tried to sell them before. finally they have a home. katie: do we know how long kkr plans to hold them? david: they don't have a specific timeline but he said 6, 7, 8 years at least. so they tend to hold things longer but one of the things

i've learned about private equity is that has changed. you leveraged up and flipped, increasingly the hold time is longer and longer and you have to work harder at fixing the business to make it worth something. katie: that's an interesting perspective, not necessarily the reputation of private equity so will be interesting to see how this plays out. kkr does have some experience in this world especially when it comes to audiobooks. david: they owned an e-book company that they sold two or three years ago. i will say it, i do a lot of my reading now on the kindle app on my phone all the time. katie: i am hopeless. i like the physical books. who else do we have coming up? david: tomorrow we will go back to wall street votes about what happens to wall street bending on who wins the election. we will talk with scott of t-square capital who has a whole

theory the trump rally already has started for the election. tomorrow night on wall street week we talked to the former chair about what's happened this week in europe -- a new york community bank and what those regulations might mean, that's tomorrow at 6:00 eastern time. katie: we want to shift gears because the supreme court is currently hearing arguments over former president trump's eligibility to appear on the ballot in colorado's presidential primary. joining us is the bloomberg balance of power cohost kailey leinz who was at the supreme court. this started in colorado but at stake here is whether or not former president trump can appear on the ballot in other states correct? kailey: that's right. justice samuel alito during this argument today said the consequences of this decision could be quite severe going on to say theoretically they could apply to all 50 states. what the justices are considering is this question of section three of the 14th

amendment which is anyone who is engaged in insurrection or rebellion cannot hold elected office. there are questions before these justices, whether or not january 6, 2021 to demean and insurrection was happening, whether the former president engaged in it and what his lawyers are arguing is this idea he was not an officer of the united states and therefore section three of the 14th amendment does not apply to him. if the court were to allow the ruling to stand it could not just mean he's off the ballot in that state could lead to questions and all the states across the united states. if they do not which is expected this conservative supermajority court is expected to overturn colorado's ruling remembering three of these justice were appointed by the former president himself is going to be a question of how narrow that ruling is. if they will want to decide things like whether or not he engaged in insurrection, with the 14th amendment means or if they will try to keep this narrow to something around the

idea of due process. justice clarence thomas whose wife was involved in the 2020 election overturning efforts has been facing calls to recuse himself from the case but he is participating in these arguments today. katie: are we expecting to see trump make an appearance today? kailey: he is not expected to be here. the former president is also facing another deadline monday to ask the supreme court to also hear a potential appeal in the decision in the appellate court hearing in washington this week that ruled he is not immune from prosecution in the jack smith 2020 election interference case. katie: really appreciate your reporting. kailey leinz and joe mathieu will have more on this later on balance of power at 1:00 p.m. new york time. coming up, the arm ceo joins bloomberg technology with caroline hyde and ed ludlow up next. this is bloomberg. ♪

this is 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. caroline: a bullish outlook on sales, we will sit down with the ceo to discuss. ed: the mouse house spikes as cost-cutting benefits and international theme park strength boost the company's