sonali: 30 minutes into the top -- into the u.s. trading day and hear the stories we are watching, all eyes on the consumer, the university of michigan consumer sentiment data. inflation stays hot, but these are prices coming in hotter than expect -- than expected. alexei navalny, the russian anticorruption activist dies in prison. we will speak to ben cardin, chairman of the foreign relations committee who joins us for the munich security conference.

i am sonali basak and welcome to newburgh markets. that is get a check because you have the s&p 500 struggling to hold onto gains. you have it in the red on the day and week but the nasdaq 100 experiencing more losses on the week down about 1% on the day and down that -- more than 1% of the week. the russell 2000 feeling losses on the day down more than 1.3%. that is something that you saw significant gains in recent days. we are not wiping out all of the gains for the week. the two year yield is where we are seeing a lot of the movement. we do see the two year yield up eight basis points on the day back to levels that we saw on tuesday after the surprising inflation data holding at about 4.65. data crossing the terminal on that sentiment data. michael mckee has the details.

michael: good news on the headline because it rises a little bit, not as much as anticipated. 79.6 from 79. but, the number that catches everybody's i is the -- eye is the one year inflation expectations which rises. this was taken before the cpi and ppi was taken, and it rises 3%. a minor move but it fits with the overall general inflation atmosphere. on a five to 10 year basis, no change, 2.9%. looking at the headline numbers, 79.6. current conditions 81 .5 slightly down from last month. expectations rise 78.4 from 77.1 which will be the one that is more important than current conditions. it does look like we have not

seen much of a change in the way that people look at the michigan numbers from party sentiment. democrats love and republicans do not like it. sonali: when you take all of the expectations embedded in the report in the ppi and cpi, what do you take from all of this together? michael: because is one month's data you will say you need more information to know if this is a change in trend or just as members of the fed said just kind of a bump in the road. the ppi data affected significantly by portfolio management which was up 5.5% feeding into the fed's favorite indicator the pce index. the market working against itself. people in the markets pushing stocks up because they think the fed will cut rates, but because

they are pushing stocks up and the price goes up the fed will not move. sonali: thank you. he will be speaking live with joann sue, the university of michigan survey considers that consumers director you can -- and you can find that on your terminal. we are joined by michelle meyer and chief u.s. economist. it is interesting, we have been hearing all week about higher inflation but also the weakness from the retail data and divergence we have seen around company reporting. how do you bring it together? michelle: january is noisy and it always is in part because you are coming off of the end of the year when you have holiday sales which are a big influx of activity. and then other seasonality issues. if you look at the data holistically and not just for january. on the other hand you have this

extraordinary increase. you have the trending higher consumer sentiment numbers and housing data. on the other site you have this stickiness for inflation and the softening that we saw over the retail sales. if you look back and look at it in terms of trend, it is one where it is one where it is very clear and the economy expands. sonali: where do you look for evidence in the day that that this is not going to be a sticky situation when it comes to inflation? michelle: inflation is important not just when you think about monetary policy but where we are in terms of the cycle more broadly. for inflation i like to break it down to different categories. the inflation that we have seen has not been uniform. that continues to be the case. when you look at things like goods you are seeing price reductions for a number of categories. a very mixed picture in it comes

to food. subcategories saw an unusual spike and generally there have been reductions. the critical parts that we will need to see are a sign that disinflation on the good side is moving into the services side. there have been a certain amount of stealthflation seeing services like motor vehicle insurance seeing inflation. that narrative needs to change. the question is can it change by itself or does it have to change with the weakening and the economy? sonali: are you wearing about barbell effects, that some people are being left behind in this recovery? michelle: just like inflation is not uniform, economy is not uniform. we look at this macro trend in terms of gdp on aggregate or spending on aggregate which is made up of a number of different stories. so, that is still clearly the case and has been this whole

cycle, probably more in the covid cycle than private -- than prior months. to answer your question to me it is around looking at labor market growth. we have seen continued growth and job inflation indicative with rising manufacturing jobs and health care and education are the big bright spots. you are seeing job creation across the board and that is critical to having a more even recovery. sonali: what do you think the impact will be? if you see some of the lower income earners having a hard time keeping up, when does it ripple through the economy and earnings and others? michelle: this has been a question for a while. when you take a step back and look at the wage growth across different income cohorts, the lower income population had some of the fastest wage increases compared to prior cycles.

again, going back to the labor market i continue to harp on this because i think it is the most important factor when thinking about the path forward for the consumer is job creation happening across the board. you are not seeing evidence of people working part-time time for economic reasons. that is not showing up. there is still churn and you are not seeing an increase in unemployment insurance. that suggests that there are purchasing power overall and that should be felt fairly broadly, obviously there are independent individual stories where we cannot speak to. as long as you have that job creation and wage growth you have to feel good about the ability to spend. sonali: what do you make of the inflation data and if you had the sentiment data saying that prices will climb and they only have 3% and a little higher than before, do you expect consumers to slow down? michelle: so, i think expectations have been well

anchored. and the michigan survey that was just released before this was consistent with that. one year inflation expectations move a lot based off of prices at the pump. the long run five to 10 year inflation expectations have remained consistently anchored even at the base of what was historically very high inflation a year-and-a-half ago which speaks to the fact that consumers have realized that some of these inflationary pops were due to the environment that we were in. and the overall economy inflated. we had wage inflation and price inflation and asset inflation. in the long run the view is much more modded -- modest and manageable inflation as long as we are his answer about their expectation i think it is an encouraging sign as the federal reserve things about the policy for the future. sonali: yields wrought -- writing higher on the back of data.

what does it mean for consumers and investors to be experiencing such a drastic recalibration of the yield curve? michelle: to me the movement has been more choppy than something that will really impact the average consumer. for us looking at the screens in the markets this is fluctuations. for the consumer, the reality is that we are likely passed peak rates in terms of what monetary policy is suggesting around the next move. and the market has been smart in pricing that in. it is still pricing in some cuts and you have seen some helpful movement in the yield curve over the second half of last year into early this year. i would not read too much into daily fluctuations. we will get new data out and the markets can move off of that as well. i do not think this is a trend.

sonali: michelle meyer, we thank you for your time. michelle: thank you. sonali: coming up the name -- the latest market analysis with catherine rooney vera. this is bloomberg. ♪

sonali: let us take a look at what is moving markets right now. what is happening over there, because we see coinbase shooting higher than -- by more than 10%. >> coinbase has seen a huge gain posting process -- profits for the first time in two years. a 51 increase in -- 51% increase

in revenue. a big part of this is the asset gains. we have seen in the last few months of the year the revenue has topped estimates by a large margin. and the company cited excitement and expectations about better macro conditions. next year and among crypto. everybody has been watching coinbase because most bitcoin etfs are getting that retail attention which is a main part of the revenue that coinbase gets, it gets a lot more retail revenue than investors. at the same time it is also looking tony -- custodian of eight of the 10 point etf's. it is lifted by some of those fees and if those grow it could be a benefit. sonali: let us talk about nike and we are seeing it dropped 3.8%. what is going on? >> nike announced 2% cut of

their workforce as they are pushing those cost cutting measures. in december the company had $2 million of cost cuts which are reducing its workforce and simplifying its product lineup. a big part of it is competition and growing caution, which it we have seen a lot of. a lot of companies are talking about cost and consumer pressures. this is yet another sign of that. sonali: speaking of, doordash is having the worst day since may 2022, even after they beat estimates. what is going on? >> this is incredible because doordash had a strong earnings report and record numbers of monthly users and those come more often to doordash the stock has rallied nearly 30% year to date. the expectations were very high.

they are luring a record number of monthly users but the gross order outlook does not look that good compared to what estimates are at the moment. so of course, the business is expanding, they are offering flowers and alcohol and into traditional markets. definitely there has been a lot of growth. what we are hearing from analyst that a lot of it was priced in. expectations were high and they were pricing for perfection so anything less is a disappointment. sonali: we thank you for keeping an eye on those markets. for a class or look -- for a closer look kathryn rooney vera joining us right now. a lot of investors talking about the divergence, how do you parse through the noise? kathryn: well, your previous just set it, i think the markets were price for the perfect landing and any thing that deviates from that even

marginally will cause disappointment. there is limited room for error coming into this year and that is something that we at stony have been talking -- stonex have been talking about. there are tail risks that can come from one of two opposing to -- trajectories. one of them are -- one of them is the robust growth where the u.s. consumer has jobs. inflation is sticky and still high. people are playing -- paying for it because they have jobs. i think it is difficult to envision a scenario where we have the u.s. economy growing one full potential -- percentage point above potential and as of last year they have grown to percent. if were that to continue inflation is unlikely to on -- to move to trend which requires below 2%. the markets will probably adjust if the economic variables, out and economic data shows that we

are economically entering a soft landing which is an economic slowdown with deceleration. we have inflation sticky not at 2% and economic growth remarkably robust. sonali: how do you feel about certain sectors, i am looking at the russell 2000 and we have been waiting for that index to get it swagger back and this week use her -- you sought hard-hit and you are seeing a gain on the week. do you feel good about small and mid-caps? kathryn: they should do well if the fed reduces rates, and if we see a benign economic environment. anything apart from that i think small caps will have a tough ride. if the fed is unable to cut the 100 or 200 basis points priced in, then i think it will be a tough road. i think if economic growth remains strong and 2024 is a repeat of 2023 which is immaculate disinflation that i

think large caps do well. if not and we get the fed that has to hold rates all year or, god forbid, hike rates and i think all bets are off and it comes down to inflation and i agree with mastercard. the fact is that the labor market is all important. and until we see some cracks, inflation will move higher and people will buy those goods and services. sonali: are there parts of the market looking a little bit double territory? kathryn: yes. the s&p 500 in general look stretched in terms of valuations, if you look at history or international equities. if we were to enter an economic acceleration, there are opportunities internationally and i would be looking outside the u.s. and latin america or japan. right now i think that the u.s. is looking pretty frothy especially when we consider the potential that there is some

economic surprises. sonali: when you look at the whole week you have seen a ride higher in yields. how has that changed your thinking around discounting, knowing that perhaps rates will be a little bit higher for longer? kathryn: a great question, because one of my great calls were the steepener. that has been pushed out so the trade that we did get right was the put spread, the short put spread's of march future contracts which worked out remarkably well. we saw a more than 150% return in the markets were discounting the first fed cut. that is very unlikely to occur and more in june. that has paid off well. when there is a consensus of equally weighted s&p and the steepener, all of those things can be pushed further out if we get sticky inflation and we

continue to see a fed reluctant to cut. sonali: how do you feel about mispriced opportunities. is there anything sold off that you would pick up at this time? kathryn: the two year treasury is attractive to current yields. if we do get fed cuts which i do think we are in the offing, all of those 6 -- all of those money markets, that could move into short duration treasuries. there are opportunities and i still like hedging our bets and put options. you can buy less than 4.5% that covers you for the next 12 months. there are opportunities right now and i would say those opportunities come with hedging your risk exposure and buying those sectors in a countercyclical portfolio policy that if things do not pan out as this market is anticipating that it might pay off nicely for a portfolio. sonali: talk about the hedges,

for the people who might get concerned about upcoming economic data or selloffs due to valuation concerns, there is a whole host of things were things can go wrong. where do you look for cover? kathryn: if you are an equities investor in certain sectors like staples and utilities, and energy. these are more defensive sectors. i like the put options, i like gold and cash. i think short duration is the way to go in an environment where perhaps we get either a hard landing or a relaxed -- a real acceleration. and i had a 10% probability where it continues to grow towards pace. andrea acceleration if the fed has to not cut or hike. i think the possibility of that is growing. i would look at inflation hedges and i would also protect with more defensive sectors. sonali: gold and cash safety

trades. thank you so much for your time. that is financial chief market strategist. still ahead we will look at the companies making the most buzz on social media. social climbers are next. stick with us. this is bloomberg. ♪

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sonali: time for social climbers, a look at the stocks making waves on social media. supermicro writing a wave -- riding a wave of euphoria. they have been on a tear of over 250%.

the bank of america has -- says it has more room to run. they will grow at an average rate of 50% over the next three years. the ceo joins bloomberg technology next hour. we are looking at eli lilly also seeing a relentless rally and has analysts wondering if it will be the first u.s. company -- comp -- company to reach a market value of $1 trillion. finally applied materials giving a bullish revenue forecast suggesting that the company has bouncing back more quickly than expected. china was a particular bright spot with sales accounting for nearly half of its revenue. you can follow all of the latest buzz on tru and go -- tren ,go.. coming up u.s. leaders are crying -- decrying the death of alexis navalny. chairman of the foreign relations committee ben cardin is joining us next. ♪

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sonali: in honor of black history month, bloomberg is taking a dive into combating racial biases in the banking industry. joining us now is kevin cohee, oneunited bank chairman and ceo. oneunited is the largest black-owned bank in the united states. kevin: thank you for having me. sonali: it has been a rough year for many banks. what has it been like to navigate this environment for your clients, particularly as the cost of financing has gone up? kevin: well, there is so much opportunity out here. yes, we are going to talk about the risks we are incurring, but

for us we see even bigger opportunities, things like artificial intelligence offer unique chances at building substantial businesses that never existed before. so, i understand the concerns related to things in the economy, things like commercial real estate, things like loan demand. those type of things, frankly, come and go. i saw this very interesting thing on your program where you guys talked about the richest people in the world getting richer as a result of artificial intelligence. i think it is important that we focus on the opportunities that are ahead and not get bogged down by the risks we face. sonali: how do you focus on artificial intelligence in this era? what is the capital come from and how are you deploying it? kevin: the theory is that you have fortified your balance sheet to be up to allow you to take advantage of opportunities. so it is not like you just woke up today and started positioning

your assets. so, these types of risks have been about for years, and if you are running the company well you have created the opportunity for the company to grow through all kinds of economic environments. that is certainly what we have done. think about risks all the time, but we put our balance sheet into a position where we can take advantage of risk-on opportunities, but most importantly to continue to build our business. how, in this era of data aggregation, in this era of artificial intelligence can you not take advantage of this? this is such a big shift. this is like going from steam to electricity. going from agricultural-based economy to an industrial economy. in the face of that, in the face of the opportunities that create a wholesale change in the way products and services are being delivered should you be caught

up in what is the latest thing that the fed did about interest rates or didn't do about interest rates? the fed is going to do what the fed does. it is wonderful that we have such an organization. the good thing about our government is it spends tremendous amounts of time and energy mitigating risks. sonali: when we are thinking about ai in financial services there have been questions about what it can or can't be used for. where are you finding the ability to make it most useful for your clients? kevin: it makes people more financially literate. the biggest problem we face in our country is this issue of financial wellness. if you want to know what people are thinking about where my going to get the money for this, how my going to pay for that, all of these financial concerns, one of the things that leads to these financial concerns is, our population is not as financially

literate as it should be. if you just think about it, we don't teach financial literacy. k-12, we don't teach financial literacy. we teach all kinds of things we rarely use, like the example i always use is, when is the last time you solved a chemistry problem? maybe it is me, but i have not solved a biology -- it has been a while since i solved a biology problem. however you solve -- however, you solve financial problems all the time. that is one of the things that oneunited bank. we are pushing for a national referendum to make it critical -- not critical, but necessary to teach financial literacy, k-12. we think there is nothing we can do to improve our society more. sonali: even at the state and local level here in new york city there is inklings of a greater conversation around that idea. how much support do you think that could get? a national referendum is certainly a larger scale. kevin: i absolutely believe we

are going to get it, because of the value we create. people realize, we forgot to teach financial literacy. we just forgot. it skipped our minds. and as a result of that, think about the wealth creation opportunity just simply from young people, children starting to save. meeting their new best friend, compound interest? the wealth created by starting systematic savings, much less having an understanding of things like, what is a stock? how do you think about a stock? how do you think about a bond and how do you think about other financial opportunities? as more of our society becomes more financially literate, we will all be better off naturally, and there will be even greater opportunities. sonali: there has been a lot of conversation about how the number of lack-owned banks in america have declined. what kind of banking system be doing to support the system of

black-owned banks in this country? kevin: i have to give them credit. they are doing a lot. the banking regulators are working overtime to try to create opportunities for black-owned financial institutions. we went from an era of lip to an era of activism, understanding the importance of having different kinds of providers from financial services. and i believe not only understand it, but are taking action to create stronger black-owned banks throughout the united states. sonali: we thank you very much for your time. that is kevin cohee of oneunited bank, on all of the promises of the future. now we are going to turn to events on the global stage. this morning russian activist and putin critic lexie navalny died in prison. the news comes as world leaders gather for the munich security conference. joining us now is democratic

senator from maryland and a chair of the senate foreign relations committee ben cardin, as well as bloomberg's annmarie hordern. annmarie: thank you so much for joining. we have heard from administration officials, saying that they are waiting on this confirmation. but what we do know from russian news alerts is that navalny has died. the president years ago had said there would be repercussions if navalny was to die in prison. is there anything this administration or you as the chair of the senate foreign relations committee can do in terms of penalties against putin? sen. cardin: this is a tragic event. mr. putin is responsible for mr. navalny's apparent death. it is tragic. the vice president spoke here at the munich security conference, vice president harris, and repeated there will be consequences.

mr. putin's actions are against all humanity. mr. navalny was the primary spokesperson to the opposition to mr. putin. and mr. putin decided he had to be taken out, and that is outrageous. annmarie: is there any action you intend to take from where you are standing, senator? in terms of any future investigation? sen. cardin: there is many options. there is many options we can take a look at. as you know, we already are engaged in action because of mr. putin's invasion of ukraine. we have already taken sanctions activities against russia. but we are going to speak out about this. we are going to look for other ways we can hold mr. pruden accountable for these actions, and we will work with the biden administration and international community to make it clear that this is outrageous. it violates all basic rights and mr. navalny will not be

silenced. is because bill lavon, and we are going to fight for the russian people that mr. putin now has a grip on. annmarie: your committee has back to the united states going after russian assets, freezing them, taking that money, and making sure they can give the windfall from that money to ukraine. where are we in that? your committee has back to the administration doing it, but so far nothing has happened. sen. cardin: right, well, the assets are frozen. whether we will seize them, we passed legislation that would allow the government, the u.s. government, to seize those assets and use them to compensate ukraine for the damages. the united states holds a small fraction of rush's international assets. most are held in europe so we need to work with our european partners if it is going to mean something in helping ukraine, from the point of view of the

financial compensation. so, at the end of this war mr. putin needs to be held accountable for his war crimes, and russia needs to be held accountable for compensating ukraine for the damage it has caused. and we believe the assets we have control over can help deal with that. annmarie: you're in munich now. what are your european counterparts telling you about whether they would sign up for this? sen. cardin: we are having conversations here at the security conference. that is one of the areas i have been talking to the europeans about. i think we all agree that russian needs to be held accountable. legislation is very clear. if russia joins an international effort to compensate ukraine for the damage that is done that is one thing, if they don't to the -- if they don't we need to look for every avenue we can to help the ukrainian people, including seizing russian assets. sonali: do you think the death of navalny is going to put fresh

pressure on the house of representatives to pass the foreign aid bill you and some of your colleagues said yes to? sen. cardin: the house of representatives must pass this bill. the aide to ukraine is desperate. we passed it by an overwhelming bipartisan margin in the u.s. senate. we know the votes are in the house to pass ukraine a. now it is up to the speaker to bring that to the floor. this death of mr. navalny is another reason why we cannot let mr. putin win the war in ukraine. we cannot let him export this type of progression to other countries beyond ukraine. so, yes, it is another reason why it is urgent for the house of representatives to pass the aide. sonali: on that note as well, does the death of ed likes navalny -- of alexei navalny change the conversation you are having with your foreign counterparts about passing aide? sen. cardin: well, we have a tough budget.

we recognize that. the united states is engaged globally on so many different issues. i am here with the members of the appropriations committee that have that responsibility. i think you are going to find that we will continue and expand our assistance to other countries to fight tear any, to support democracy. so, yes, i do hope you will be even more aggressive in the financial ability to act on behalf of democratic states. annmarie: there has been a lot of sanctions and penalties levied at president putin and the russian economy, given what we have seen in terms of putin not backing down in ukraine -- we have the latest instance this morning of what the vice president called brutality, with the death of alexei navalny. is it high time that the administration sanctions russian oil and gas? you and i both know that is how putin is able to fund this war. sen. cardin: we do have sanctions on the energy sector. there are sanctions.

the question is, how do we enforce those sanctions? we need to look at secondary sanctions, beyond just a russian entity, but other countries that are avoiding the sanction regime, to be able to take action against their companies that are violating the restriction we have on russian energies. so, yes, we can enforce the sanctions more aggressively, and congress may need to provide additional aid for that to be done. annmarie: we do see europe doing that. they're going after secondary sanctions, they are going after some companies in china. with the usb willing to go after chinese companies you think are moving around -- with the u.s. be willing to go after chinese companies you think are moving around u.s. sanctions? sen. cardin: the foreign -- we are in negotiations right now as to what we can do to enforce

sanctions against russia, including looking at chinese companies that are violating those sanction resumes. -- regimes. sonali: what about the current events here? will the senate open an investigation into alexei navalny's death abroad? sen. cardin: we are going to be looking at, with the administration, as to the circumstances around his death. his spouse is here in munich. i had a chance to talk with her briefly. she asked for accountability. there is going to be accountability. we will work with the biden administration to sort out what our options are. annmarie: i was struck by what the vice president had to say about isolationism, and announcing isolationism, something we have heard a lot from donald trump, who has talked about nato and the delinquencies of some nato countries. today ursula von der leyen is

talking about subsidizing the european union, some of these corporations in the defense contracting space so they can hit their 2% target, so there is more defense spending in europe. would you be in support of that? should europe be doing more within the eu market to subsidize their defense base? sen. cardin: i'm not sure i completely understand your question. i may have lost a little bit of that. we are very engaged globally. i'm asked the question frequently about the united states engaging with our global partners. we are going to stay engaged. we are fighting to preserve democratic institutions and we are going to do everything we can to make sure that is a reality. look, there will be some challenges along the way. we have some challenges from some of our allies. bottom line is, the united states is going to be the global leader to protect democratic institutions. sonali: senator ben cardin, we

thank you for your time. you're going to go back to the markets. we are going to talk about the etf industry. stick with us. that will come up next. this is bloomberg. ♪ ♪ that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

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sonali: it is time now for wall street week daily. david westin sat down with richard haas. take a listen. >> i think joe biden has done good on foreign policy. whatever you think about it, i don't think voters are going to have that foremost in their minds. it might be questions of his age, or mr. trump's legal issues. what is interesting is, even though most voters will not vote on the basis of foreign,

wherever is elected, this election will have enormous consequences for the world and america's relationship with the world. david: george w. bush did not run on foreign, and yet he ended up eating a foreign policy president. give us a sense of some of the differences on some of the key issues. you have the war in ukraine, the middle east, climate, china. to some of the differences between these people? richard: china is one of the areas the differences might not be that great. they are both tough on china economically. not so clear geopolitical. on trade neither one of them as much of an enthusiast for trade. both wanted to get out of afghanistan, but it probably ends most of the similarities. ukraine, obviously, fundamental differences. joe biden has made that the centerpiece of his foreign-policy. more broadly, the center of his foreign-policy is allies. he sees allies as giving us a

comparative advantage, a way of leveraging american power. donald trump sees allies as an albatross. he doesn't care about them. that is the single biggest difference. climate change is also fundamental. last time mr. trump was in he took the united states out of the paris process. joe biden did the ira, once america to pull its weight in the climate area. the middle east is more complicated. not clear that either would have a whole lot of influence over this israeli government. mr. biden may try to have more influence. not clear that it is leading to much. when mr. trump was president he wasn't much interested in the palestinian issue. joe biden is. big difference there. iran, neither one is quite sure what to do. iran is getting closer to nuclear weapons capability. donald trump, some would argue, helped pave the way for that, by

pulling the united states out of the nuclear agreement. joe biden wanted to get the united states back in. it didn't work. whoever is elected, he is going to have to deal with an iran that is on the threshold of a nuclear agreement. plus, you make a good point more broadly. you don't know what is going to happen. 9/11 wasn't in the works. what happened in gaza on october 7 wasn't something we planned for. for all we know the next president will have to deal with the crisis in pakistan, which has dozens of nuclear weapons. or maybe it will be north korea or something in the americas. at some point we end up voting for these people less because of their policy papers and more because of their judgment and who they are likely to bring into government with them david: we tend to think of what is at stake for the united states. i wonder what is at stake for europe in this election. you mentioned ukraine. nato might just this week, this has been in the news if and what

form -- former president trump had to say. but also on the trade front. president trump was not particularly friendly to europe. what is at stake for europe and the pressures we put on europe if donald trump pursues the things he says he may? richard: big differences. one of the reasons europe is now almost obsessed with our politics. donald trump represents, potentially, a fundamental departure. nato has been the mainstay of our relationship with the world for three quarters of the century. it is not clear the donald trump values that. it is not clear that he would continue to support it. he doesn't have to pull the united states out of nato formally in order to undermine the value of the commitment. if joe biden is elected you know it is going to pretty much continue. but i think a fundamental question mark over america's commitment not just ukraine, but europe, indeed one of the things

going on is, how do they prepare for this possibility? either if trump were elected, or even if he is not, if congress begins to get in the way, they are in the case of ukraine. really interesting conversations are taking place in europe about how they become less dependent on the united states, more self-reliant, or a combination of the two. david: i worry about divisions. this week we have seen the fight in congress about aid to ukraine. i have always understood that historically, physically partisan politics ended at the waters edge. we did not export that to our foreign policy. that seems to be gone. what does that say about the role of joe biden or donald trump as the president, in the sense that congress will not be supporting them? richard: i wish i could disagree with you, but i can't. i don't mind having healthy pop -- healthy disagreements over policy issues, but this is not that. people don't want to go along

not because of the merits of the policy, they don't want to go along because they opposed the domestic political repercussions. that is a clear violation that politics stop at the water's edge. this is something qualitatively different. it is bad now in the case of ukraine, taiwan, israel, that it presages something bad for the future. it says, foreign-policy is not special. we are not taking it seriously, despite the stakes, despite its impact on the world, despite its impact on us. that is something very different. i don't think you would have seen that during the cold war. but we have seen now is a different mentality that foreign-policy is no longer that important. obviously on the right. much less on the democratic left, but we are also seeing it there. there is a real resurgence of isolationism. sonali: that was wall street week host david westin with richard haass.

the 2020 four exchange conference continued in miami this week, and for recap we are joined by emily griffey out. -- grafeo. state street is in the news for a few reasons today. emily: the conference is pretty much the etf's -- etf industry's largest conference. there are etf market makers, traders. of course the fund issuers gather in miami. i noticed one big theme was model portfolios. down at the conference katie greifeld and i sat down with pete hill. they have a smaller slice of the model portfolio pyrite now. lee about $5 billion. you compare that to blackrock, which has about one hundred billion dollars in their model portfolio business. a lot of the conversations were around, how do businesses scale this part of the industry more

and more financial advisors are asking for model portfolios, a ready-made strategy of index etf's packaged together that state street or blackrock can offer clients. talked with state street about their plans to hire employees and scale their business to about 25 dollars in assets. -- $25 billion in assets. sonali: these days you have seen a lot of different companies capitalize on them. what are the options that people are talking about? emily: everyone was talking about income, which feels like that has been a theme for a while. but jp morgan's fund is one that comes to mind. saw a lot of advertisements for that at the conference. but everybody was talking about launching a new fund that had some sort of options overlay strategy, where the investor can get equity upside, but also protection from an options overlay type of strategy. sonali: how are things to emily grafeo two in next week at 12:00

p.m. eastern. coming up, jason robins joins bloomberg technology with caroline hyde and ed ludlow. that is up next. this is bloomberg. ♪

>> from the heart of where innovation, money, and power collide, this is "bloomberg technology ," with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's world headquarters in new york. ed: and i'm ed ludlow in san francisco. this is "bloomberg technology ." caroline: doordash delivering the goods, but the stock pulls back, while draftkings is betting bi