>> here are the top stories that we are following. the last trading day of the quarter. the best start to the year since 2019. stocks hit new records this quarter. mental him is a powerful force. rebuilding the baltimore bridge. the total cost will be at least $2 billion. america's largest building materials company joins us to discuss, and awaiting bankman-fried's sentencing.

the final chapter the case concludes today. we will preview what his prison time might look like. i am katie greifeld in new york. welcome to bloomberg markets. the final trading day of the week. it is pretty quiet, but it is green. the s&p 500 up. it is the same thing if you take a look at the s&p 500 and your tech stocks. this is interesting because it was the same story yesterday right have small caps outperforming. we do have some economic data to sink our teeth into.

that's get to mike mckee. mike: if you want to trade higher, you can pin your numbers on the university of michigan and the association of realtors. coming in higher-than-expected and higher than last month. the current conditions index is up. expectations index rises from 74--- 74 .6. in both cases, they go down. good news for the fed. down from be percent and 2.8% down from 2.9%. in terms of pending home sales, a little bit of a pickup for the month of february. we have been getting an little

report that things are better. last month we were down. some improvement there and in the way that people are feeling about the economy, katie. katie: why it moves, but the direction of travel seems to be higher. you mentioned inflation expectations. i understand that you are working tomorrow. mike: yes. send me your chocolate eggs. but yes, we have the pce inflation numbers tomorrow, which are key to the fed. they will be out at 8:30 tomorrow morning. i will bring that to you on bloomberg radio and jay powell is speaking. we will see what he has to say about those numbers and what the smaller had to say. katie: good luck with that.

let's turn to the equity markets. joining us is shayna. she is the ceo and founder. let's talk about this equity market because s&p is up 10% year-to-date. one of the best first quarters in several years. you make the case that this is really earnings lead. >> fundamentals have been driving stock performance and that is what you want to see. we had a long time where that had not been the case at all, but we have had really strong earnings the markets, starting to pick winners and losers based on earnings. that is a good thing, if you are a fundamental investor. katie: it is interesting because coming into the year, the bear case or not so bullish case was you would see earnings struggle

a little bit. how much cannot really continue with that momentum? what do you think has not had earnings hold up but this -- what about the environment has fueled them forward? >> the reason people thought earnings would not be good is because rates were high and we have seen slowdown in the economy. it has been reflective of how the companies have been performing. katie: that is creating winners and losers yet we will get into specific names and a little bit. what is the broad brush stroke paint of who is the winner in this environment? >> clearly, technology. technology has been a big winner. a lot of technology stocks have done very well. you have seen some positive movement in industrial names as

well. there has not been a sector that i consider a big time loser except for utilities. having a good dividend yield is not as important, but you have seen some broadening here. health care is an area that is interesting. it lagged a little bit but has started to do better recently. but technology has been the biggest winner and i do not see why that would change anytime soon. katie: when you have bonds yielding what they are, it does not look quite as attractive, but let's talk about the fed because we have pce tomorrow. i guess there is a risk that the fed is more hawkish than has been thought. do you think the risk of a more hawkish fed is already priced in?

>> i do, but i actually have the opposite concern. i think the fed is being a little dovish. if they were truly hawkish, there would be no cuts this year. not to stir the pot too much, but i would argue that if the economic growth numbers continue to come in as they are, even with rate as they are, i would argue that the fed might need to continue to raise rates. i know that is controversial, but i would argue that they need to be thinking like that. katie: stir away. it is a question that i have asked, but at the same time you have inflation coming down. why are we talking about rate cuts? i know you think that there is a risk that they could hike, but

why do you think the fed is talking about rate cuts? what explains the real desire to cut rates this year? >> i think the fed in the markets have gotten a little drunk on the punch they have been getting for years now. we are so into this zero interest rate environment that it seems absolutely insane that we would not start to cut. if we look back historically, these rates are not high. i think the fed -- we are in an election year. they like to say the fed is not political, but they can be. generally speaking, the fed wants to cut interest rates and do things that will have a soft landing. raising rates will increase the rates of a recession.

katie: i think we will be having that conversation pretty often the next couple of months. one quick question before we go to break. to me, this year so far is about what is going on in bitcoin. now we are back at all-time highs for that claim. is it increasing adoption with these etf's? >> two things that make it with the price up. the amount of tradable bitcoin is small. only about 25% of total bitcoin trades regularly. you have to consider that.

the other happens next month. if you look at it, the most successful etf lunch ever. they are equally -- would have been the best lunch ever. it makes it easier to earn bitcoin. katie: it has been interesting to watch. what is going on with super micro computer? >> last trading day of the quarter. i had to give the caveat that it was recently added to the s&p 500. you see this stock up.

it is up more than 20 fold. a $50 billion market cap. they actually still see more room to run the initiating coverage on the stock. a price target on that. you cannot forget nvidia. it is up about 80% year-to-date. katie: that is nothing. not too bad. super micro computer. it started the year as a small cap. that is the best performer. what is the worst performer? >> tesla. this is a stock that has been under pressure. we will get another update on that number.

they do think that some of the issues we have seen with deliveries could be temporary. they are beginning to downgrade that stock, so that will be key in general. back in july -- it will be key. katie: we will see if that is a one off. >> we do have jp morgan reporting that walgreens reporting this morning. just marginally higher. down 20% year-to-date. the s&p is up about 10%. if strong quarter for the s&p. some of the report, anytime there is a strategic review that comes along, you do see traders eager to see that happen.

they are reiterating what we heard from this company. they tightened their outlook. the company did site a tough retail environment. a tough break down when it came to the village primary care unit. when it comes to cost-cutting efforts, that is what investors are eager to hear more about. we will have to see as more executives come in. katie: coming up, home depot building out its businesses as they try to move professional contractors. we will have information on the new deal, next. ♪

something amazing is happening here. retailers are moving inventory quickly and securely. that's because cdw designed and built a solution with cisco security. end to end protection, defends against attacks and makes better decisions in real time. so warehouse and customer data stay protected every step of the way. make amazing happen. cisco and cdw.

katie: home depot announcing that it will be buying building materials for more than $18 billion. they are beefing up their professional services business as they make a push to win over roofers and other building professionals. john edwards joins us now with more. i do not know srs. that is a private company. what do they see there? west ac the opportunity to maximize their presence. their main competitor gets about 50% of its revenue from professionals and lows gets about a quarter of their revenue. this is a big way to do it.

also with contractors. it is part of that lucrative market. katie: there are diy innovators at home. let's talk about the price tag. it is quite a chunk of change. they are only off about .6%. it seems like the market might be ok with this. >> they are getting more exposure to the markets. when you think about going down and getting stuff in the cards, what they are really focused on

our the professional. that is why the market seems to like but it is seeing. >> the market and home depot are aligned. thank you to john edwards. you are back with shayna. the management ceo and founder. we were talking high-level. you do invest in individual stocks. before we get into names, and wondering what your process looks like. how does it look when you are looking to invest in a single name? it is a really broad makes here. >> the reflection of the background. i worked mostly for the last 15

years -- i research individual strategies. the way i get my stock ideas is, i hear them tell their stock stories. i will talk to them and see why analysts tend to like them. that is how i narrow my list down. i do my own work after the fact to make sense of the story above and beyond, that most of my ideas come from people i truly respect. katie: i appreciate the clarity. it is interesting, this story led approach. people look at valuations etc.,

but it sounds like you really start with the narrative and from there. >> i started my career at fidelity invest in's. they are story people. will likes to talk about how most of his ideas come from paying attention to what kids are doing. there are stories about peter walking into stories and asking salespeople what is selling. i grew up in an environment where the folks i respected most -- that is how they approached it. they do not start screening that way. what they are hearing, they will sit in on meetings with management talk about competitors, starting with the story. >> let's talk about one of the biggest stories out there, nvidia. they have seen such a fantastic

run. up about 80% loan. it has been one single quarter. what is the continued momentum hearing? i have to imagine that they are trying hard to take some of that share. >> they do not have a lot of the competitors. there are not a lot of people doing what they are doing and being as innovative as they are. you tend not to move unless there is a reason. since they already have the dominant position, unless nvidia does something to screw that up, it will be hard for somebody else to come in. that is a tailwind to the stock. i would argue that is a risk as well because they have to execute perfectly in order to ensure. they have done that.

those are the reason i really like the stock. i have liked stock for a long time. i got excited back in 2001 and 2002 because of the gaming chip and the graphics. i remember watching my brother play video games. today it really is about having a dominant share and dominating really well. >> it is a good reminder. that is the nvidia story and it makes a lot of sense. one of the spiritual opposite of what we are seeing in ai. what is the story there? i feel like some of the energy

name have been left behind. >> there is not as much emphasis. saying hybrid is where it is at. we are not seeing that there is less demand. they had a huge advantage. it is better than most of their competitors. they have very good margins. they have such good margins and are able to take advantage of what is going on in the marketplace. a reversal of people moving back to the fossil fuel world, understanding that we are not ready to shift away.

katie: still ahead, social climbers. this is bloomberg. ♪ starting a business is never easy, but starting it eight months pregnant... that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs the chase ink card made it easy. when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours. investment opportunities with the chase ink business unlimited card. are everywhere you turn. do you charge forward? freeze in your tracks? or, let curiosity light the way. at t. rowe price,

we ask smart questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow. better questions. better outcomes. ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more in prospectus at invesco.com.

katie: a look at the stocks making waves on social media. carnival warning that their earnings could take a billion-dollar hit because of the baltimore bridge collapsed. they will temporarily move baltimore operations to virginia. estee lauder getting a glow up after an upgrade. raising the recommendation on the personal-care giant saying that earnings have bottomed. we do have coinbase making the social mounds after a federal judge ruled that the sec can move ahead with the lawsuit

against the trading platform. legally operating under security laws. you can follow all the latest company buys on your bloomberg terminal. coming up, rebuilding the baltimore port. we will be speaking to the cih. -- crh. ♪

not all caitlin clarks are the same. caitlin clark. city planner. just like not all internet providers are the same. don't settle. you want fast. get fast. you want reliable. get reliable. you want powerful. get powerful. get real deal speed, reliability and power with xfinity. she shoots from here? that's kinda my thing.

katie: rebuilding the collapsed francis scott key bridge in baltimore is thought to cost over $2 billion. here to talk more about what it will take to repair the port is albert manifold who is the crh ceo the largest building materials company and the largest road builder in the u.s.. right to have you. we are talking about a 1.6 mile

long bridge working out to 2.6 kilometers. when you think about that, does $2 billion sound reasonable? albert: first of all this is a terrible event and my thoughts go to the families of those who lost their lives. this was a tragic accident and one really has to reflect on what happened. these are enormous cargo vessels. the vessel we were talking about was 1000 feet long and fully loaded as it was it makes it twice the weight of the largest aircraft carrier in the world. nothing would withstand being hit by that. in saying that people are trying to make an assessment of what happened and that will take time. so we are too close to the situation at this moment to make a proper evaluation. but i know that we have had situations like that in the past and we have had very large and quick reconstructions. if you take the time and effort

and work to getting a larger construction place we can build back these bridges in a sustainable and safer way. katie: i think it is an important point, just the size and scale we are talking about. when you take a look at some of the side views of the bridge compared to the actual vessel that we are talking about it is really striking. i appreciate your perspective on that point. i want to talk about the cost of raw materials. you goes -- you think about what goes into rebuilding a bridge, what kind of inputs are we talking about and what are the prices that we are looking at such as concrete for example? albert: there has been a significant increase in energy cost which has flowed into construction materials. in saying that, materials are only a small part of the overall cost of building back major infrastructure. that is the cost of labor involved in the manufacturing of

materials and the preparation of the site itself. all told it is expensive but we have had the construction of the past 50 or 100 years. katie: let us talk about infrastructure and what it pertains to the u.s.. i know that you see substantial opportunity for crh when it comes to infrastructure. our you planning to seize on that. you recently switched your listing to the u.s., was that part of the plan? katie: we have been present in the united states for over 30 years and we are the largest material building business. the next four players, we are larger than them combined. we are a very large business in the u.s. and very well positioned to benefit from a generational pact that we are seeing in place. we have the ira and chips in science act. all of these are supporting significant construction as we

rebuild the critical infrastructure that helps drive growth ahead. katie: taher point you have been involved in the u.s. for decades. does being a u.s. listed primary u.s. listing company help you seize upon that in any way? albert: we moved our listing in september of last year but at that time 70% of profitability has come from the united states and that will grow in the years ahead. it just seemed a normal part to move our listing to north america and we have seen a very strong finish to 2023, it was our 10th consecutive year and that has continued to 2024. we have very good tailwinds. we are the largest tilting materials player. it bowed -- bodes well for our business. katie: the united states as a meaningful contributor to your

bottom line but being in the u.s., has it helped familiarity with u.s. investors. i look at crh shares and know that you recently an all-time high and does being listed really help u.s. investors know who you are? albert: it does, to some extent we are the largest company that you have ever heard of. our total market cap is $60 million and we moved to the united states because this is where the focus of our business is. as we get our message out there because we are the largest player in building materials, very significant and inefficient area -- beneficiary but the on showing of critical manufacturing back to the united states is very significant for our business. we have outperformed all of our peers over the last number of years and that has resonated with investors not only with can turn -- with returns but the next five years will generate

$35 billion of free cash flow. $25 billion will be invested in our business in a significant growth cycle for construction in the years ahead. katie: could the other portion be used for acquisitions for example. albert: $25 billion will be acquisitions and the other 10 billion will be to ensure cash flow. we are a very profitable business and we look to rewarding shareholders not only in terms of growing the bottom line and equity also returning cash. last year we returned $3 billion and this year through share buybacks we will also return a further $3 billion. it is an important part of the value proposition. katie: when it comes to returning cash what is the decision process between share buybacks versus increasing the dividend look like? albert: the issue for us is

dividend is something that you can rely upon. we have a record of 50 years of unbroken growth. this buyback is something we do with surplus cash. we generate a lot of cash and we only spend on m&a and in turn -- and external expenditure. and if it is not there we returned to the shareholders. that is why we use that platform to do that. katie: because you have this unique perspective i am also curious about what it looks like building roads and the like in the u.s. versus europe. what is the difference between those sorts of markets? albert: europe is the most regulated construction market in the world and we have a large presence in europe, not only are we number one in the united states but also in europe, crucially and that central european power from finland's down to the black sea. we are number one there. what you are seeing is the

specifications and regulations put in place are different united states that we can take those techniques that we use in europe and bring them to the united states and it helps build back in a more sustainable way. for example, by no accident we are the largest recycler of any material because of the innovation that we found in europe and brought to the united states and this is better for the u.s. economy and cheaper for the u.s. taxpayer because using more recycled materials lowers the cost of recycling projects. katie: great to speak to you and our thanks to you. this is the ceo of crh. let us get a check of the markets. we are going to do that with simone foxman. simone: we are looking at the s&p taking a breather after a historic run this quarter and the action elsewhere in this market. the yen weakening despite comments from the prime minister in japan saying "preventing a

recurrence of deflation is a -- is the purpose of my administration." the market is not sold on that and crude is slipping to 82.4 -- 82.30 ahead of an opec-plus meeting. as we sought, positive u.s. data and economic at -- and gas jumping. amc entertainment entering into an equity distribution agreement talking about potentially selling up to 250 million class a shares, that is the negative for that stock down about 14% in trading. walgreens had been down in the premarket but now we see after earnings results a move a little bit higher as investors digest the results. we will have an interview with the ceo later. finally, luxury home goods retailer rh rallying as they

have an aggressive revenue growth in eight to 10%. the big story today is also going to be in the crypto space. we are watching bitcoin above $71,000. we have not hit those same levels that we have seen in terms of bitcoin earlier this month. there is some positivity over 3% gains in today's trading. that said, some negativity. when you look at the outflows from etf, grayscale and bitcoin trust and now grayscale bitcoin etf is seeing investors pull $14 billion over the course of the quarter and they were able to redeem their investments in what had been a trust after the sec approved the bitcoin etf. and we saw really offsetting flows into ishares's bitcoin trust.

we expect negative sentiment not only because of sam bankman-fried but also sources in the u.s. and u.k. probing $20 billion in reactions may that's mainly linked to tether. katie: let us bent -- let us stand the crypto space because sam bankman-fried is appearing in coit -- in court for sentencing in new york. the ftx founder faces decades in jail for stealing billions of dollars of from customers. david joins us live from outside the courthouse now. and tell us about the range of possibility that we are talking about when it comes to possible prison length. david: it is an extremely wide range with what the defense wants in the prosecution is asking for 40 to 50 years. federal guidelines could be as high as 110 years in prison and they are underway and moving swiftly. sam bankman-fried wearing a tan jumpsuit from the jail in brooklyn where he has been.

he was there before his trial and states. what was the core of the argument, there are no losses and the bankruptcy recovery effort and the victims are not standing to lose as much money. judge lewis kaplan who presided over the trial and is going to sentence him rejecting out of hand, telling the court i reject entirely the contention that there was no actual loss. he drew a very vivid analogy to going to vegas, taking stolen money and betting it and being successful, that does not clear up the crime of stealing money. we have had the portion where the judge has gone through what the guidelines are what they might be and what they might decide on as a sentence and now we are hearing from the parties. sam bankman-fried's new lawyer giving a very compelling case to why he thinks sam bankman-fried does not deserve to go to jail for incredibly long period of

time. we are hearing familiar arguments about who sam bankman-fried is and was, that he was a math nerd and socially awkward and he has somebody who was fumbling his way through this and never sought to be the crypto king that he was said to be by those in finance. katie: it seems like also a leg of the defense is trying to portray bankman-fried as elizabeth holmes rather than a bernie made off. david: the parallel is that there are two young people who committed these frauds but they have a lot of life ahead of them. you look at the defense, there point of comparison is bernie made off -- bernie who got 150 years in prison. they are saying look at elizabeth holmes and michael, these were shorter sentences and people who stand to do good and have done good in the case of michael with his philanthropic work.

this is the parallel and we will see what the judge finds more compelling. katie: i will be back for a special edition of bloomberg crypto at 12:00 p.m. eastern and of course you can catch david on the big take, bid take podcast. coming up joshua bolten comes up to talk about how the election risk will impact wall street. this is bloomberg. ♪ personalized financial advice from ameriprise can do more than help you reach your goals. -you can make this work. -we can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space?

boring does. great job astro-persons. over. boring is the jumping off point for all the un-boring things we do. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. taking chances is for skateboarding... and gas station sushi. not banking. that's why pnc bank strives to be boring with your money. the pragmatic, calculated kind of boring. moving to boca? boooring. that was a dolphin, right? it's simple really, for nearly 160 years, pnc bank has had one goal: to be brilliantly boring with your money so you can be happily fulfilled with your life... which is pretty un-boring if you think about it. thank you, boring.

simone: you are looking at a live shot of the principal room. coming up, the walgreens alliance ceo tim wentworth. that is at 11:30 a.m. eastern. this is bloomberg. katie: it is time for wall street week and today we are looking at how ceo's feel about the economy. joshua bolten conducted a survey of ceo's on that very question.

he spoke with david westin to discuss the results. joshua: our ceo's are in a comfortable place. every quarter we asked them about expectations for sales over the coming six months and their plans for capex and hiring. and we combine the results into a headline index that is basically a pretty good barometer of ceo sentiment. and the ceo's in the business roundtable, there sentiment for the coming six months is pretty good. for the first time since the third quarter of 2022, that headline index is above its historic average. so, it is not exuberant. it is not going gangbusters as far as the ceos are concerned. but they see things as in pretty

good shape for the coming six months. based on economic fundamentals. and it seems to me, david, the one thing that might throw them off of that optimistic outlook is something dramatic that happens in the politics or geopolitics. david: let us talk about that specifically. you had experience in the white house and you know about you speak. -- of what you speak. can the president really affect the economy substantially? joshua: from the standpoint of the businesses, enormously, particularly during periods when the tax code is open for renegotiation, when there are potential trade deals on the table that might or might not happen depending on who is in charge. the regulatory environment is

dramatically influenced by who is in the white house. so, all of those things can really affect the business outlook from the standpoint of our country's biggest corporations. david: let us take the three mentioned starting with taxes and the difference as we perceive it between the two front runners. joe biden said that he wanted to increase taxes on corporations and presumably president trump would want to renew the tax cuts. how does business perceive the alternative between two individuals? joshua: business very much welcomed the tax cuts that passed in 2017. they had a lot to do with the prosperity that we enjoyed the for the pandemic and that we enjoy now, that is a reasonable tax environment. you know, prior to 2017, the united states was among the

highest tax jurisdictions among developed countries. the 2017 act did not bring us to the head of the packed but put us -- ahead of the pack but put us in the middle. in 2025, a lot of those provisions that brought us back into a competitive range will expire. and, there will be a big debate about what to do when a whole range of tax provisions on both the corporate and individual side and the occupants of the white house is going to have a lot to say about whether taxes go up or remain roughly where they are. the composition of the congress for that purpose is also going to be very important. and, as close as it looks like polling suggests that our

presidential elections will be, the control of both houses in congress is very much in doubt. david: as you know so well, taxes in washington amount to revenue. if you cut taxes you lower revenue as well. how concerned are business ceo's about the debt and deficit situation. there is a lot of concern on the economist point. joshua: as a former budget director i am concerned as well. the ceo's of the business roundtable are very concerned about the fiscal situation of the united states. but, from their perspective, the united states does not really have a problem that we are under taxed. certainly on the corporate side. we have a problem of overspending. if you look at historic data about taxation and tax revenue as a percentage of gdp and

government spending as a percentage of gdp, you see that the tax revenue over time is relatively historically average and how much of our gdp taxes are taken. what has gone way out of whack is the spending. and so, our members would like to see the congress and president, together on a sensible way to control what has been out of control spending. and not try to solve the deficit problem on the backs of our businesses, because our economy will not flourish if the tax environment is not competitive. and we are at risk of becoming once again an uncompetitive tax jurisdiction. katie: that was joshua bolten, business roundtable ceo and

david westin. tomorrow we will hear from larry fink, the blackrock chairman and ceo. this is bloomberg. ♪ okay y'all we got ten orders coming in... big orders! starting a business is never easy, but starting it eight months pregnant... that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs the chase ink card made it easy. when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours.

katie: let us take a look at stocks hitting some highs. disney hitting another 52 week high after ubs raised its price target citing the strength in these parks business. it is up about 1%. you also have iag hitting highs after jp morgan put it stocked on its positive catalyst watch list. it shares -- its shares are up on a pretty quiet day overall for the equity markets. coming up on bloomberg technology, jim webb -- tim wentworth, the walgreens

alliance. that does it for bloomberg markets. i am katie greifeld. this is bloomberg. ♪ were you worried the wedding would be too much? nahhhh... (inner monologue) another destination wedding?? we just got back from her sister's in napa. who gets married in napa? my daughter. who gets married someplace more expensive? my other daughter. cancun! jamaica!! why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. can we get out of here? i thought you'd never ask. join 18 million americans and take control of your financial future

with a real time dashboard and real life conversations. empower. what's next.

>> from the heart over innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with caroline hyde and ed ludlow. ♪ ed: i am ed ludlow in san francisco. caroline hyde is off. this is bloomberg technology. full coverage of the sentenc