katie: we are 30 minutes since the u.s. trading day on this thursday, march 1. commercial real estate concerns reignite as new york community bancorp in the cross as after lenders say it discovered material weaknesses on loan risk with shares plunging right now. the tesla ceo sues open i ai alleging they violated putting profit ahead of benefiting humanity. the ceo of the real yield joins us to discuss the state of secondhand apparel market. ♪

katie: welcome to bloomberg markets. take a look at markets now and you have the big benchmarks fighting to stay green even as we worry about regional banks. the s&p 500 is higher by 0.2% and big tech is slightly better. the nasdaq 100 is up about 0.4%. kre is an etf that tracks regional banks and it's off by about 2.2% or so. the new york community bank shares are at the lowest since 1996. they are plunging once again for the commercial real estate lender said it found material weaknesses and how it tracks loan risks. hermann chan joins me now. could this test put this into context. we were waiting for another shoe to drop so how bad is this one? >> the disclosure yesterday

evening about the material weakness raises questions on how the bank is monitoring their loan portfolio especially with heightened exposure to areas of concern like office commercial real estate and rent regulated apartment lending. it adds to the uncertainty and raises questions on future potential provisions for loan losses. do they need to add more capital to the balance sheet, are there more expenses because of the need to shore up their compliance? lots of questions surrounding them. katie: where does it go from here? you look at the shares now and it just a wipeout. what is the path forward? >> it's a challenge. the good thing with new york community is they have a fairly low level of deposits. that offers them time to really

shore up the balance sheet and placate regulators and address the material weakness and deliver 10k within the fifth -- the next 15 days. katie: i'm sure you are very busy on this friday and we appreciate you spending some of your time with us as we tracked the fallout of new york community bank. let's take a broader look at the market with scott kroner. it is march 1 and already we've seen 5 wall st firms already lift their forecast for the s&p 500 to the year end targets. do you think the equity rally so far, have you been surprised? >> i would say no. we went into this year with an above consensus earnings outlook for the s&p 500 so we been on early -- and earning resilience theme for months now and it's been playing out. we would argue the fundamental

foundations the u.s. equity market are in good shape and they support the index price action. what has happened is the latest rally we had has begun to push the valuation envelope a little bit. it's not a big concern for us but it puts more pressure on fundamentals to eventually grow into these valuation. katie: you sound like a bit of a contrarian. people tell me they are worried about valuations at this juncture but you say that if you look at the fundamentals they are close to justifying it? >> it's a matter of timing. we are not concerned with valuations. they are often for the big seven, they are probably in the top 20 year average but the rest of the 490 we within the s&p also topped the 20 year average. valuations have come up but generally speaking, when you look at peg ratios, pe to

growth, they have come down. the underlying growth dynamic is actually supporting some of the valuation move. we have run pretty for pretty fast. our view toward a very strong earnings year for the s&p 500 has a back after loading element to it. that's the shorter-term issue where we've run pretty hard but we need some time to get more evidence of the fundamentals. katie: let's talk about tech specifically. when we look at the s&p 500 and the price-performance, we tend to be talking about tech given how huge that sector is. when i speak to people about tech, i hear comparisons to the late 90's in the early 2000 and the word bubble gets thrown around a lot. what you think about the idea that maybe we are in a bubble? >> i'm not a buyer of that argument. i don't think the current circumstance for tech in general

is near where we were back in 98-2000 timeframe. this is markedly different from a fundamental perspective. the quality of the companies, the earnings and free cash flow generation are driving this out the real deal. that distinction is important to us. it does put a lot of focus on the more you run this mega cap growth cohort around the generative ai tailwind which we think is for real, the more pressure you put eventually on the fundamentals that come from the investments being made on this to play through. that will take some time. maybe a year or two or longer so we will have to allow there is a strong differentiation going on within the market now which gets to this price target discussion that the market is clearly distinguishing between long-term growth records.

where you have that, the market will pay for it now but still, you will get to this point where the fundamentals will need to substantiate a lot of these moves. katie: when we talk about the benchmark, we talk about tech and when we talk about tech, we're talking about ai. you think about all of the investments being made by the people who aren't necessarily the enablers like nvidia. you think about the massive spend to develop ai processes. at this juncture, it feels like this is a margin compression story more than anything. i'm curious how you feel about that. >> that's a good point. we would probably take a little bit of the other side of this. the way we've been describing it is that there are two dynamics at work. you have a set of companies that have clear identifiable revenue and earnings opportunity that comes from investment in ai. that's where big tech comes in.

when we say we are constructive on u.s. equity fundamentals in a longer-term, the rest of the market has companies that unless visible means are incorporating or will incorporate generative ai into their business practices in a way that ultimately transforms into productivity and we expect to see it over time in margins and profitability. i would emphasize over time on that. two different approaches how you think about incorporating a generative ai concept more broadly into how we think about stocks in the broader market. katie: we're just getting started here and we will take a little break and talk about something other than tech so hang tight. let's look at what's moving underneath the markets. let's talk about sweet frame

because people are buying $20 salads. >> we look at the earnings report and it looks great and we look at the outlook for investors in the price reaction is more than 20% area there is an interesting breakdown where we see consumer pressure. there are a few for survey showing the weight loss drugs are increasing and encouraging more healthier food so different groups are really having a strong rally here well maybe junk foods chains are having a harder time. this boost the outlook for companies like this because of lot of studies are showing those weight loss drugs increase consumption of veggies and fruits. maybe going forward, healthy food will be the way to go for those chains. katie: this is an example of positive disruption when it comes to weight loss drugs?

>> exactly, people are craving veggies. katie: sweet green is seeing a pop. >> we've seen this a couple of times. stocks are priced for perfection and earnings report comes out which is not necessarily bad but the reaction is 20% drop or more. this comes after a 300% run up in the stock price. we saw nvidia getting a share in this so there was a lot of ai optimism in that stock. the revenue jumped 80%. a solid revenue report but still, not pricing for -- for perfection and we have a discipline again. katie: when the bar is that high, it's easy to disappoint. let's talk about apple, getting the boot from goldman. >> it's no longer the top investment for goldman it's still a buy but it's not making the list and there's been a lot of views around and everyone has

talked about generative ai. they are no longer their decade-long project for electric vehicles but they are focusing on ai. there's been a lot of competition in this is obviously the newest thing. people are questioning what can change for apple and whether the iphone 16 can bring this extra new thing with generative ai that others are not offering at the moment. katie: still a buy but not an ultra buy. thank you so much. coming up, dell is the latest stock to be swept into ai fueling markets. more on the tech giant next. this is bloomberg. ♪

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katie: let's talk about openai and elon musk. he has sued openai and its ceo sam altman alleging they violated the artificial intelligence startups founding mission by putting profit ahead of benefiting humanity. let's welcome in ed ludlow, the cohost of bloomberg technology. talk me through this because elon musk has a history with openai. ed: yeah, the simple fact here is that elon musk is basically alleging that this is some sort of illusory promise to the original backers of the project and says that when we founded this thing, we agreed this was going to be a nonprofit. it was for the benefit of humanity. it's going to be an interesting process to see if there is

actually any legal grounds at all for elon musk to make that argument and then what his end goal is. the history that elon musk has using litigation as a means to send a message frankly or two basically get a competitive edge. for a while, he had an interest inxai which hopes to offer exactly the same thing is open i -- is openai currently does. katie: the fact that you have a competing product. what have your conversation sounds like around that point? ed: when interesting development this morning is a post on x saying the discovery process in this litigation will be interesting and elon musk replied on x said yes. what we might learn here as a

side consequence of the lawsuit away from its original intent is what happened the weekend sam altman was fired and what was the board's concern with him? openai has been pretty clear about the trajectory it's on. it wants to commercialize its technology and it has tried in the weeks and months that followed sim altman's departure to explain how the nonprofit board overseas a for-profit entity. there are complications running a 5013 c umbrella over the top of it. it's impossible for us to say what is elon musk trying to do? it will come down to whether there is any legal basis in what he is accusing openai of. katie: i won't ask you to read the mind of elon musk but talk to us about openai.

he feels the fact that it's a nonprofit and it has this mission for benefiting humanity, this will continue to be a sticking point for this company. ed: yeah, the interesting question some investors raised after a were reported their latest valuation is why do they need to raise money? why do we need to learn about the cap table. microsoft enjoys half of their structure but the reality is, as they have to make money and raise money because their computing costs are so high. they have put out ai is a generally available product. that takes a lot of infrastructure to support and it costs a lot of money. this will be an interesting existential debate around how they can move forward long-term without having a model that requires them to be for profit. katie: i look forward to having

more existential debates, thank you so much. let's welcome back scott kroner. i want to -- i won't ask you to weigh in on the existential debate let's talk outside tech. if you think back your last hobart, we had a broadening out of the rally and then the calendar flipped and it feels like the bullish fantasies of going by the wayside. when it comes to the market outside of tech, do you think we could get that momentum back? >> i think it's a good conversation point. the market is broadening under this service. companies above their 200 day moving averages have risen significantly over the past three or four months. it gets masked when you have three or four of the big seven driving the full year index gains but under the surface, there are many companies that are on strong momentum plays

right now. i think this will continue. the market seems to be discerning between longer-term growth trajectories and if you can look at that, you are in pretty good shape. katie: what would be the catalyst? is this an earnings story where the fed finally moving into cutting mode? what would be the catalyst for this for investors on a broad level to look outside of tech? >> we are overweight industrials and have been for over a year now. we are very constructive on the u.s. industrial economy. you benefit from things like global sits up -- supply chain a diversification out of the pandemic and reassuring but you benefit from increased automation and what you are seeing these companies do is incorporate their own forms of ai implementation in a way that maximizes their approach to customers in business activity.

we think the industrial economy is in good shape. in addition, you are seeing more of these companies are targeting where a lot of the ai investment spend is going. you build a new data center and you need equipment to support that as part of the build out. they are benefiting from some of these same tailwinds. we think we will see from us it fiscal stimulus effect, the government spending program, investment in ai but incorporating ai in a way that minimizes the historic cyclicality of those businesses. when you men out eyes -- when you minimize that, it can be a higher valuation so that's one example that stands out. the retailing part of the market is the other example. we've moved overweight on u.s. retailers going into this year, same deal, they will incorporate ai and related technologies in a way that influences their time

to market with the right inventory in the right place with think all of this is beginning the set up a broadening an array of companies that may not be direct beneficiaries of ai investment but ultimately become the users of that technology that enhances their longer-term business trajectories. katie: just to meditate a little longer on that point, we are not just talking about tech, some of these physical economy names can see the benefit as well. >> to be clear, we are talking about the banks and watching what's happening on some of that front. it would be nice to get a fed pivot to see a lot of the short-term rate plays come down. a lot of investment is predicated on rates that banks charge relative to lending so becomes an influence on this but more broadly, i keep coming back to the set up that more and more

of these companies we think will find ways to an operate technology whether it be software or ai or generative ai components in a way that enhances their productivity and what we are looking for is a play through from a profitability perspective. we think this is a big deal when it comes to the industrial economy. katie: let's talk a little bit about retail. we just got through the real part of retailer earnings. how are you feeling about that position over -- after what we learned the last couple of weeks? >> we went overweight back in december going into this year. if you go back and look, the real stock price compression in the retail sector happened back in the first half of 22 as the fed was first moving down a hawkish path.

from the middle part of 22 through the end of 23, the retail sector was trading sideways, taking all of these stomach punches in terms of consecutive fed rate hikes in stride. our view is that a lot of the concern about inflation and interest rates were quickly being priced into the sector and under the surface, you had this spending resilience where we have to acknowledge that the influence of fed rate hikes has been positive on those with savings because the money you're earning now on deposits in money market funds. that tends to be the important driver a lot of the retail sales activity. we think a lot has already been priced in relative to the fed inflation and interest rates. we think the consumer, even as savings rates come down is probably in a pretty healthy place for those companies that

require their spending to support fundamentals. katie: we've got to leave their of a great conversation and happy friday. still ahead, we will look at the companies making the most social buzz today in our social climber segment up next. this is bloomberg. ♪ the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai.

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it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. katie: time for social climbers and a look at those stocks making waves in social media and eli lilly is getting a new injection of confidence with bank of america raising its outlook citing more upside for his diabetes and obesity drugs. overfunded pensions as what you don't hear a lot with kodak releasing news that they are weighing up pension reversion that would tap into the $1.2 billion surplus in its pension fund.

you also have ev makerfisker as it put its financial survival in doubt. coming up, the ceo of the real yield. this is bloomberg. ♪

katie: real positive growth for the real real, the luxury retailer soaring after beating revenue estimates in the first quarter. it also delivered its first positive adjusted ebit. and adjusted cash flow since its ipo. the stock is up 42% over the past two days and joining us is the real real ceo. let's go over that one more time. it's the first positive adjusted ebita since your 2019 ipo. what finally pushed you over the line? >> it was a fundamental change

to our business. we had to concentrate on higher value merchandise. we limited some merchandise under $100 and as we moved up market, that was a more profitable point. we also stopped buying direct merchandise. that was a necessity that came out during covid. we walked away from that and those are two of the biggest things. in addition, we improve the operational performance in the warehouse and we have a lot of steps that go into authentication and photography and descriptions. we improve that a great deal for profitability. katie: that all contributed to what we saw yesterday. i want to talk about this in the context of the macro economic environment and i want to talk about demand.

there is concern out there about a slow and luxury spend and aspirational luxuries and slowing discretionary spend. do you see that as a headwind in 2024? >> honestly, we are not seeing it right now. we are a supply business and not a demand business. the only time we saw any lips recently in demand were in september and early october during october 7. other than those things, we've seen consistent demand and we cater to that customer who wants to trade contemporary level products. we and that -- we haven't seen that demand slow down at all. katie: if we look at your supply side in inventory balance, it was about $22 billion. when you think about the right

level, where is that threshold when it comes to inventory? >> we are really trying to minimize that. we don't go out and consciously by products with [indiscernible] the vast majority of our merchandise is actually consigned so we are trying to minimize that. what you see is out of policy returns. we paid the consignor for their purchase and we get a return unexpectedly. we are trying to moderate between the consignor and the customer and make sure everyone's happy. katie: for the select brands you buy directly from, what is the criteria to get on that list? >> it has to be easy for us to take the risk and sell it. we won't make as much. you don't get paid as much but we are taking the risk.

we take a lot of pride in the amount of intelligence we use in terms of pricing or merchandise. if we price it right, we can make more money with consignment. katie: is that what you see right now, making more money on fewer orders? if i look at the details of your fourth-quarter earnings, you saw average order value that grew even as the orders and active buyers felt a little bit. >> that's exactly right. us moving away from the merchandise that's less than $100 helped but we took the bottom out of the market and we saw a lot of people moving into the higher price points. our average order value is about two units of both of those rose quite a bit. we've been reaping the benefits of that. it makes her operation more efficient as the average order value goes up. katie: i want to talk more about the supply-side, the decision

between buying directly from some of these brands versus the consignment model which is what you are pursuing now. what are the risks around the consignment model? >> it's a much more profitable model for us. we want to make sure we develop a relationship with the customer. we want to be as indispensable as your travel agent or financial advisor. we can do a very good job as long as we formed that type of relationship with the consignor. if we can get to that part of your life, there is a constant supply of goods. we see our best clients were in their client monthly finding things they no longer wear and are seasonally appropriate and we go through that process over and over. it's good for the economy and good for the environment. at the same time, you are

freeing up the cash to buy the next goods or if you missed it in the primary market, we can find it in the secondary market. katie: i'm curious to hear your thoughts on the competitive landscape. the resale market is heating up now and you have ebay authenticating luxury goods now. how do you plan to grow and maintain your share? >> competition is interesting in our market. with respect to those competitors out there, [indiscernible] we need more people to be aware of consignment. an awareness of our brand is 40% right now. as we educate more people on businesses around us, the better off we are. a lot of our marketing dollars to only go to educating people about us that educating people about consignment in general. katie: now that you've reached

some of these milestones of positive adjusted ebita, what is next for this year? >> we've done it for a quarter. no stone is unturned. we need to prove we can do it for a whole year. with the business model changes we've made, there is is no reason we shouldn't do that. katie: really enjoyed this conversation and congrats on your quarter. that's a check on the luxury resale market. shares are up over 30% today. let's get a check on the broader markets. abigail: we are looking at a bit of a risk on with the s&p 500 on modest gain of 0.4%. the russell 2000 is outperforming, up 2.7% off of

the october low. a real outperformance from bitcoin up nearly 21%. new york crude, we're looking at a nice rally there above $80 per barrel for the first time since november. this week up about 5%. if we look at what is happening relative to the russell 2000 not just from the october low which is back here but if we go back to the all-time high which was back in 2021, this has yet to make another record high to follow the s&p 500 and the nasdaq, it's interesting to note that the russell 2000 small caps are down about 15% from their all-time high while the nasdaq 100 and s&p 500 and the s&p 500 slightly higher over that time. we have record highs for these three indexes. will we see a catch up for the russell 2000 or this dish or is

this more of a situation like market turmoil in 2006 when small caps were leaning to the downside. i would argue we don't know but one pressure for stocks although it's not that way right now where we've seen investors fleeing on higher yields, take a look over the last month, the two year yield is up 35 basis points and the 10 year yield is up 32 basis points. that's one reason to keep an eye on the russell 2000 and see whether it's a leading tell to the downside or that catch up trade where it could be significant we just don't know when that will be. new york community bancorp over the last month down about 34%. that's happening today as they disclose they have material weaknesses that although it won't affect revenue from 2023 and they made ac suite change,

it's about commercial real estate with pressure on that space with lower occupancy rates and rising rates about 50 billion dollars. residential is the major portion of their pie. there are other loans altogether so stay tuned for that story. katie: a great roundup and our thanks to you. coming up, will we hear from mary daly and how the fed assesses the neutral rate and how it factors into decision-making next. this is bloomberg. ♪

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katie: it's time for wall street week and the host of wall street week david westin spoke with federal reserve bank of san francisco president mary daly yesterday about whether the fed takes into account interest paid on common expenses like auto loans and credit card bills. >> the way monetary policy works is you raise the interest rate and that raises borrowing costs and that slows people's spending and the economy settles down to a more sustainable pace and inflation comes down. that's how the models work and that's how it empirically works overtime. what's different this time is consumers have stayed in the game. they continue to spend, they continue to want to participate in the economy and that has spurred ongoing growth that has kept inflation a little bit higher for longer than we would've thought. overall, i think the news is good and we absolutely see the challenges that families face when they have to pay higher borrowing costs. but we also know they really

want us to bring inflation down. there is no place i go in nine states but you can hear the same thing. the number one problem is inflation. david: some people think the fed was maybe a little slow at getting started on rate hikes. how do you avoid that problem on the way down? you said you don't want to go down to 2% and run the risk of recession but how do you know you are on time with the cutting? >> i am deeply focused on the very question. i think we were a little slow to adjust rates when inflation was gaining strength. at this point, we have policy and a good place, we can adjust the policy rate down if the economy calls forth but the were still adding jobs at 2x the rate you need to keep the rate stable when consumer spending continues to be solid and often more robust than anybody would expect in gdp growth is coming in

strong, there is no imminent risk to the economy faltering. we want to make sure we calibrate so we are balancing two objectives. if we let go of the reins on the economy to quickly, inflation gets stuck. that it takes that scarring effect for people and they have it for the rest of the decade were five years. all those things we don't want to happen. plus, it's a very painful tax on those who can least afford to bear it. the other option is we hold on too long and the economy tips over. it hasn't done yet but we want to avoid that so that is a delicate balancing agnes why you keep hearing me and others say we are data dependent, not data point dependent, looking at the full complement and we are agile. we are sitting in the ready position. we are ready to make moves and adjust as the data demands us to do and the economy and policy

are in a good place to do that. david: some economists say an overarching notion of how much to hold the reins or let them go is where the neutral rate is. >> exactly. david: it's weather goes down or up. some say geopolitics, we need to spend more on defense, deglobalization, various factors are raising the neutral rate. how do you assess the neutral rate and how does it affect your decisions? >> it's an estimated variable and no one knows what it is. i think we have to be mindful we came in with a neutral rate which was roughly .5 so we wouldn't need 2% inflation. i have in my own head that is between .5 and one. that gives you a lot of room to say yes, those factors you mention could be pushing it up. we frankly don't know.

what we do know is whether it's .54 one, policy is still tight. we still are having an impact on the economy and that's what we would expect. we tighten policy and the economy slows and borrowing costs rise and things we already discussed. .5 and one is a reasonable span. if you do that, we have the answer we need which is policy is tight and then we can learn experientially whether it's .5 41 because we won't know in real time. david: to what extent is the real interest rate figuring into that? is that how you monitoring it? >> it's a simple back of the envelope calculation. that's not exactly how we do we work but these are very imprecisely measured variables. you cannot rely on them and say the model says this so that's how we will calibrate policy. you have to look around to the

economy and be data-dependent. if the policy rates five point 5% and the nominal neutral is three, then it's a lot of tightening in the system. we still have a tight policy stance. that's what i mean by 2.5 and three is not that different in terms of nominal neutral when you have a policy rate that's above five. katie: that was federal reserve bank of san francisco president mary daly and david westin. we will hear more from that conversation later tonight at 6 p.m. eastern wall street time on wall street week. this is bloomberg. ♪

katie: the search is underway at vanguard for a new ceo after tim buckley announced he will retire by the end of the year. for more on this news, we are joined by eric bell bloomberg intelligence. he is the authority on vanguard. you literally wrote the book. talk us through the legacy that tim buckley leaves. he's been in this post since 2018 or so. >> tim buckley's legacy is a big one. the next ceo will have big shoes to fill. basically over so vanguard's assets grow by 4 trillion he doubled those assets. fortunately, it's bigger than most asset managers have total. it also really leaned into etf's and that was smart because etf's are the vehicle of choice for most investors especially advisors.

he learned hard into etf's. a lot of investors internally switched over. he pushed the advisory service. vanguard investors are getting older so they started an advisory service to help manage their money in a bigger way. some money is coming in from outside and he finally dealt with a bunch of headaches. they pulled out of china. it's a high-growth area but it has a lot of issues any old out of the climate agreement with those managers. the next ceo i think will have a lot of things going for them. katie: tim buckley really leaned into etf's and out vanguard on the heels of blackrock which is the largest etf issuer in that gap is really narrowed under his reign. would you expect the next ceo would keep that as a core focus

of the business? >> yeah, when you walk into vanguard now as the ceo, everything is going well, don't rock the boat, keep it going. they have to work on customer service. if you go to yelp reviews, the biggest rip is long wait times when they call in because vanguard does not have that much in revenue so they don't charge a lot. you got little money to work with. this is their achilles heel. the next ceo should make this their legacy, customer service and technology which is where they can improve greatly. the asset management stuff almost takes care of itself because of vanguard's brand and reputation and momentum. katie: talk to us more about who the new ceo could be. you expect an internal higher? >> greg davis would be somebody i would think of and they

pointed out that he could be president. he's a good guy and he's the face of vanguard along with tim buckley and i know he would do a great job. every ceo to this point has been one of vogel's current assistance. they love to keep it in-house but because of the customer service issue and howdy market to millennials and gen y, they might want get -- might want to get someone from outside. katie: maybe they will keep it in the family. it will be fascinating to watch and i know you will be all over it. you can catch me and eric every monday on etf iq at 12 p.m. eastern. you can bet on the fact we will talk about this on monday. before we go, let's take a quick look at some of the stocks hitting highs and lows on this friday. we will start with autodesk, hitting 52 week highs after a reported fourth-quarter result that beat expectations. shares are up about 2.2% right

now. next up is advanced micro devices. it's hitting fresh highs and they are seeing their market cap close to above 300 billion times for the first time. citigroup wrote it is wildly bullish on semiconductors thanks to ai and amd is currently up 2.7% in the market cap is not quite nvidia levels but it's rising significantly in this ai craze. on the others, let's look at some 52-week lows. xl energy is sinking the most since 2020 after a law firm said the utility company might be linked to the texas wildfires ravaging the state. that is showing up in shares in a big way over the past two days it's down about 14%. coming up, the autodesk ceo joins bloomberg technology with caroline hyde and ed ludlow up next at 10:00 a.m. new york time.

that does it for bloomberg markets. have a great weekend. this is bloomberg. ♪ you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai.

>> from the heart of where money, innovation, and power collide, from silicon valley and beyond, this is "bloomberg technology" with caroline hyde and ed ludlow. caroline: i'm caroline hyde. ed: i am ed ludlow in san francisco. caroline: elon musk sous openai & altman allegedly violating the company's founding mission