katie: we are 30 minutes into the u.s. trading day on this friday. your other top stories we are following. taking a breather -- goldman adds to the july fed rate cut as the stock market rally is at risk of overheating. smaller waistlines, booming production. eli lilly will invest $5 billion to boost production of its weight loss drug. he will have the skinny. and we will speak to the ceo of curious elixirs about the rising trend of nonalcoholic drinks as americans fire up the grill for

memorial day. katie: and katie greifeld in new york. welcome to "bloomberg markets." look at markets on this friday, green on the screen after a disappointing day on thursday. s&p 500 higher by .4%. it felt by .7% yesterday. we are marginally lower for the week. a look at the nasdaq 100, higher by half a percent. but russell 2000 current the higher by .6% or so. let's drill down into eli lilly, boosting its weight loss drug supply. the farmer giant was meant 5.3 billion -- will spend $5.3 billion to make the main ingredient on its with loss drugs. the popularity of this shot has

led to shortages. gaming cardi joins us now with more details. you think about the question to boost production and be able to address the demand. how far will the investment go? >> ideally, despite the ubiquity of these medicines it sometimes escapes and it sometimes escapes notice that they are technically in a shortage, lily's and a competing drug from novo nordisk. the idea is to boost the production of the active ingredient. it is not just the immediate problem lily is having, the autoinjector pans that disrepute these medicines to patients. this is a long-term bet from lily's perspective. at some point when the popularity of the medicines make them available to millions of people around this country and the world to whom they are potentially beneficial, there might be shortages in the active ingredient and lily is preparing for that eventuality. it's an ongoing matter that

companies are trying to deal with. katie: an ongoing matter, and the question everyone is asking is when we do get more supply and that is actualized, will prices come down? damian: that remains to be seen. lily is fighting with insurance companies to get coverage of these medicines. the list price is unlikely to budge, but the actual net price that people pay is the subject of ongoing negotiations with many players in the american health care system who determine what people actually pay for them, in the competition from novo nordisk and a handful of other companies should probably in time push those net prices down. we have seen curious things happen in american drug pricing. not a guarantee. katie: not a guarantee. it remains to be seen whether this produces lower prices, but if vague investment from eli lilly nonetheless --- a big investment from eli lilly nonetheless. joining us is clear harbor asset

management co. founder -- co founder and ceo. you take a look at the week that was, tech is the only sector in the green out of 11. what does that say about when we might see this rally broaden out? we have been waiting and waiting. >> it's interesting, katie, to your point about tech, it is the only sector in the last five days that is in the green, and the overall s&p 500 as an example is down 30, the five bases point over that same time. when you look at tech as representing one third of the overall market, we have a little bit of a window into that. the broadening question is an important one. the russell 2000 is not up 2% on a year-to-date basis even though the s&p is up almost 12%. there is sensitivity around the state of the consumer as it pertains to the domestic nature of smaller cap names, the broadening of that market is

probably going to require more confident for the consumers in good shape. keep in mind the small-cap part of the market is more sensitive to variable rates. when you look at the balance sheets of those companies, i think 40% of those balance sheets have significant variable-rate functionality with high interest rates. their margins are under a bit more pressure here. we will see rates drop a bit as well. katie: i want to talk about that a little bit more because as we referenced in the last hour, deutsche bank out with an interview saying that the stock market can thrive even if the fed doesn't cut rates. does that logic apply to the small-cap space, which is really under pressure right now? aaron: i think it depends on the sectors and the opportunity set, for sure. you know, if you look at the consumer right now, unemployment is extraordinarily low, and i

think the big variable will be if we start to see unemployment in united states move above that 4% level, katie, we could see a bit more pressure on the services, on the consumer, on the consumption side of things, and that could ultimately weigh on the nontechnology part of the markets on the margin. on the flipside, when you think about what is going on in the market, some of the trends have change that we are seeing, looking at the eurozone pmi's this morning, they were very strong, better-than-expected, back into expansionary territory, in the durable goods data this morning was strong as well. it is fueling optimism that may be the extended evaluations we have seen particularly in the united states equity markets and the mid-cap, large-cap part of the market could hold and they don't augur a moment where we should be timing for correction. extended markets tend not to be a great timing mechanism for those who are trying to figure out where tops are in the market.

katie: what about a rate hike? how much would that upset the apple cart? aaron: that could certainly upset markets, katie. we would see about six rate cuts, even though the fed's summary of economic projections were around the three-cut level for 2024. now the market expect the next rate cut to be in september, and it is hard to argue there is going to be one around the election. maybe we only see one, possibly two this year. i do think a rate rise would rattle markets. there is this structural question around the last mile of inflation. we have gone from cpi at 9.1% through june 2022 to below 4% today. the pce is about 2.8. as you alluded to earlier, we will get a read on that next week. if we don't have a lot of progress on that last mile of

inflation towards the fed's target rate, that is going to be a challenge to keep the fed more on hold. i still think the balance of risk is for the next move to be a rate cut, not a rate hike. we do have important variables as it pertains to the last mile. deglobalization is something we weren't talking about five years ago but we are talking about today. the transition to renewable energy is something we are talking about today. that can incrementally be inflationary. deficit spending doesn't seem to be subsiding, and defense spending doesn't seem to be subsiding. those are not disinflationary pressures. those are incrementally inflationary pressures. katie: and so when it comes back to the idea of a rate hike, it is not something that is the base case, but it sound like you can't rule it out either. i want to switch gears and talk about m&a opportunities, something you highlight in your note as something that could be a catalyst of opportunities around here.

when you think about where there could be m&a in this market, what are some of the sectors that stand out? aaron: well, these are thoughts that came out of many earnings calls that we have been on here at their harbor, where about -- at clear harbor, where balance sheets are quite good at many of these companies and there is been some softening in the secondary market on the private investment side as well. if you look at m&a activity last year, it was off about 10% in the united states. we think there may be an opportunity even if rates remain high for some companies to need to sell assets, to spin off assets./ we have seen some of that data. we think there could be-- they could be ripe for the acceleration on the m&a front. we have seen exxon mobil buying pioneer natural resources. that deal closed earlier this month. just saw the dupont story earlier in the week that they would be splitting off into three different business -- independent businesses. i think it is m&a, it is also

the spinoff. we saw ge spin off. we have bhp bulletin and glencore looking at anglo american. there is a lot of activity right now, and we will see it on the technology side as well. that certainly can create opportunity for investors both on the private equity side and the public equity side. katie: just like 30 seconds, i do find it interesting that we are talking about m&a, talking about the opposite of m&a, and that is spinoffs. you look at certain indexes of spun-off companies and they are at all-time highs. what are you thinking around that space? is that an opportunity in your view? aaron: we don't look at it on the financial engineering site. we look at each company for what it is. we look at management, we look at the moat they have created or haven't created, we look at the

leadership position, financials, balance sheet. we go back to the basics on every company we look at at clear harbour. recent spinoffs, particularly on the ge side, there is compelling opportunities there -- for example, on the dupont spinoff, there is a business they will be making public. we will want to take a look at that. may not invest in it, but certainly want to take a look at that, because we think at a macrolevel that segment of the market is of interest to -- of interest to us at clear harbour. katie: aaron, great stuff, really enjoy speaking with you. have a great weekend when you get there. aaron kennon of clear harbour asset management. let's look at what is underneath the markets with the need to take over. just did need to take over. bad day for the work day. >> the worst since march 2022. the company is suffering after it announced lower expectations

for subscription revenue. even though this quarter, numbers came in line, this is not enough to bring optimism to investors. subsequent -- subscription sales are projected to be significantly lower, a key metric for the company. the ceo is trying to bring optimism, saying they are expanding internationally, but you can see that on the street the sentiment is very pessimistic. bank of america cut their target. katie: down double digits for workday. things don't look too much better when you look at intuit. denitsa: interesting enough, intuit had a pretty strong earnings report. it saw a big increase in higher customers, but were investors see concern is the lower income consumers that access tax software for free. the numbers are following.--

falling. the competition for that part of the spaces getting more complicated. people using tax for free this year, one million lower. katie: shares down 7.5%. newsflash, led bushes bullish on apple, who would've guessed? denitsa: highs to target on the street. something that investors -- it is based on ai. they say iphone demand is turning the corner into the ai-driven-16 super cycle. that is a big issue for apple. everyone is criticizing them that they have been behind, there's concern about revenue growth, concern about demand in china. now we are seeing a strong month for apple, 10% up in may after a rough start to the year. potentially the deal with a i could bring optimism. katie: remains to be seen. our thanks to denitsa.

the g7 finance meeting underway in italy. finance ministers and central bank owners are gathering to discuss the issues facing the global economy. along with them is oliver quirk, who joins us with a special guest for an exclusive interview. >> that's right, katie, thank you so much. i'm joined by the president of the bundesbank an ecb governing council member. thanks for joining us to discuss the main things we are discussing at the central bankers meeting. i would like to begin with the data we got out of the euro zone. we had a very strong wage front for the first quarter. how is that affecting your thinking about where rates should go, particularly since we are respecting inflation to take up next week? is it appropriate to cut rates under the circumstances? >> first of all, it was not a surprise that it came out pretty strong. wage data is often a lagging indicator, so what we saw in the

latest data is related to the high inflation rates of the past. one of the payments included in the current wage data -- my expectation is there is a flattening of the wage data occurring over the next month. i believe there is some relief coming from the wage data. oliver: it sounds like it is not concerning you that much. we are expecting inflation to come up in germany and spain and france, does that not concern you? joachim: as a central banker, you are always concerned. what i see the trend is the more pointed issue. when i see is that over the last couple of months, inflation rates came down. i expect the next month's that inflation is coming down further. core is coming down.

what i see is that the probability is increasing that in 13 days we will see the first rate cut in the eurozone. oliver: it up on that do think we can rule out rate cuts -- beyond that do you think we can rule out rate cuts? joachim: there is not a kind of autopilot that when there is the first rate cut, that there is a consequence, more rates cut coming for believe this is not helpful, this discussion. we really followed the meeting to meeting understanding, and that should still be the case. if there's a rate cut in june, we have to wait, and i believe we have to wait till maybe september, i think july. as i said, it is too early to specter.

duchess meghan late. --too early to speculate. oliver: can you think of any circumstances? joachim: foreign guidance was awful in an environment where there are blue skies, -- was helpful in an environment where there are blue skies, sun is shining. but now it is an uncertain world, a lot of geopolitical risks. the data incoming is the most important indicator that we have to follow. oliver: some of the clouds in that sky has to do with the trade action we have seen out of the united states raising trade barriers with china. we are expecting the eu to do some thing similar. i'm interested in how you see that playing into the inflation story. can you see prices going up as a result of more protectionist policies? joachim: we shouldn't forget that most of the things we discussed here has to do with the unprovoked war of the russians against ukraine. and this is still the main factor. we shouldn't forget what is

going on here. rate issues are becoming more important. fragmentation seems to be something we have to deal with. but we also should take into account that fragmentation is harming economic growth, and we should find a smart way how to deal with this. oliver: another bit of fermentation, divergence between the fed and the ecb, and i don't want you to comment on the fed and how it bears on the ecb, but there are people on both sides of this -- is the divergence between the fed and ecb inflationary or disinflationary? joachim: first of all, we have to take into account that the situation in the united states is different from the eurozone. the situation in economic terms in the united states is stronger than in the euro zone. inflation in the united states seems to be a little bit more sticky than in the eurozone. what i would like to say is we

have to do monetary policy for the euro zone. this is our mandate, and inflation is coming down. nevertheless, there are spillovers. take for example the economic models we are using. there are -- there are feedback loops. what happens in the united states has some impact on the data we are using. we are not completely independent from what is going on in the united states. oliver: is it hard to tell? joachim: i guess we have a good understanding what is going on there. what i see, taking the eurozone data -- and this is my first line of defense, and i have to look at what is going on there. this is of highest importance to the governing council. what i see is the confidence that i have that weekend maybe, high probability lower rates in

our next meeting. joachim: i want to talk -- oliver: i want to talk about the election two weeks away and what we have seen in germany and the rise of more antidemocratic portions within germany, you have been very vocal on this pit what do you see as your role and your responsibility there? what effect do you think that has joining these protests? joachim: over the last seven years we have achieved a lot in terms of democracy, freedom, and it is important to get out and address all of these issues, th at i see the danger, that there may be some groups that are jeopardizing what we achieved over the last decades. i believe it is -- this is influencing the economy here in europe. there is a lot of diversity, freedom of speech, and this is important to me. oliver: potentially some of the

reason that you see people moving in that direction is because of the fear of economic uncertainty, whether it is the energy crisis in germany, rising costs, even ai, losing faith in the mainstream approaches. how do you reinvigorate credibility in the men's room approach to solving economic fears -- mainstream approach to solving economic fears? joachim: i'm not sure these are the root causes. this is what we will deliver and the governing council. it is important that the representatives of organizations like the bundesbank, they are clear here. what europe stands for, europe -- a lot of, let me say, growth wealth for europeans would end up and catastrophe to give up on that. oliver: there was a big speech

emmanuel macron gave and he mentioned the ecb may be targeting growth, carbon transition. what is your reaction when you hear emmanuel macron saying that? joachim: president macron is an inspiring leader, so i appreciate everything you're saying. regarding the mandate, i have a little bit different understanding. it is complicated when we are trying to think about a dual mandate, showing much more. -- doing much more. we should speak to our mandate and that she price stability -- and achieve price stability. oliver: joachim nagel, president of the bundesbank, talking about the fundamental issues being discussed here and beyond. katie: our thanks to the deutsche's bundesbank president speaking with oliver crook.

this is bloomberg. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

katie: it's time for social climbers, a look of the stocks making waves on social media. lucid will cut about 400 jobs next to slowing demand for its ev's, on the tail of layoffs at tesla. next up, a bloomberg's group, burger king taking off the gloves as it unveils its five dollars value meal -- ahead -- that will launch ahead of mcdonald's. the tit-for-tat underscores the pressure to reach budget-conscious diners feeling the pressure of higher prices. let's take a look at the markets, because we have seen a bit of an interesting reversal when it comes to the bond market

for we got the university of michigan numbers. i want to focus on inflation expectations. 3.3%. a little bit of relief -- five-10-year inflation out put at 3%. the expectation had been 3.1%. just about unchanged on the day. 4.93%. we are below 5%. s&p 500 building on its gains. up half a percent. we are lower but just slightly. interesting to see if we can get there. little bit of softness as rates come down slightly from their highs.

coming up, no more poor decisions? jw wiseman is the curious elixirs founder and is with us next. this is bloomberg. ♪

katie: the booze-free movement is gaining steam as young consumers rethink their relationship to alcohol. nearly 40% of all americans are trying to drink less, including 60% of gen z. for more on the business of this over-curious movement -- the sober-curious movement, i'm joined by jw wiseman, founder of curious elixirs, and alcohol free cocktail brand. great to have you in person. you founded this business in 2015. what was the state of the nonalcoholic industry back then?

j.w.: practically nonexistent. when i started in 2015, i wanted to drink less. one of my friends and gotten sober. we -- when we went to bars and restaurants in new york you could barely find ginger beer. i got tired of club soda. katie: what is the catalyst? you think of how the industry has grown from virtually nonexistent nine years ago to now, it feels like it is the hot new think, especially with gen z. it is the demographics, the pandemic? what was the catalyst here? j.w.: everyone is waking up to ask themselves the question, what do i want in my relationship to alcohol? people are asking those questions, and companies like ours are making solutions for them tounwin-- to unwind with their friends and help business owners make more money. that is what is going on. the pandemic accelerated things for us, because some people drink a lot more during the

pandemic and some people drank a lot less. we saw sales skyrocket from 2020, and every year has been bigger. katie: you think about the effects of the pandemic across industries, it's been really interesting and in some cases unintuitive. your product is not just alcohol free, you put adaptagens in there as well. do you get some sort of bus or effect? j.w.: no, we are not trying to give you a buzz, we are trying to help you destress. in curious number one rebalance your cortisol, your pin molecule, levels and increases your serotonin and dopamine precursors. you have more raw materials for feeling a little joy. does that make sense? katie: it does make sense. you feel something. the only way to really know the effect is to try it. i want to talk about demographics, because we read some of the research, really

skewed to gen z. what do you see when it comes to the actual demographic trends? j.w.: three massive cohorts. one is people over 40 want to drink less but want to unwind with friends, and there is people in the millennial group and people in the gen z group. people either sober or cutting back. they are defining where on the sobriety spectrum they want to be. they are coming for thousand different reasons, whether they are pregnant, training for a marathon, want to have better sleep, better sex. it is happening across every single generational cohort. that is what is amazing about it. i think gen z and millennials get a lot of the attention, but the truth is it is happening across every single segment. it's wild. katie: i used to talk about it with my parents, and their narrative was it is just fancy juice, it's just a soda.

but the conversation has changed in terms of perception across generations about what nonalcoholic drinks are. i'll big do you think this market could get -- how big do you think this market could get? j.w.: this is the first act of the opera. there will be a pendulum swing back. some people think it is going to be a $20 billion, $30 billion, $40 billion industry. it is $11 billion now, but it is going to continue to grow. depending on the individual company or sector as a whole, it is growing every single year since we started in 2015. katie: with that growth you have big brand names coming in. your traditional alcoholic beverage makers with their own versions of the nonalcoholic product. how do you compete there? j.w.: it is wonderful they are coming in. it is something to educate everyone that there are better options out there and better options possible. i would caution every consumer,

read your labels. just because it is nonalcoholic doesn't mean it is good for you. listen to your body when you're drinking, or taking anything. it is up to the individual to see how this can make an impact on their social life, physical life, and now they can enjoy life with less alcohol. katie: who do you feel you are competing with? there is other nonalcoholic brands, is it the big cow garlic beverage makers coming into the space -- take alcoholic beverage makers coming into this space, or is it something like marijuana? more people are smoking marijuana daily as opposed to drinking daily. j.w.: i think with what curious does we are making something special and unique, and they are inspired big craft cocktails but not try to emulate something else. they're trying to be something new. that is what we are focused on, making something different than everything else out there and helps people feel a little

more included and it is helping us mentors make more money with the same guests coming into her selfishness. katie: i'm glad -- coming into their establishments. katie: i'm glad you brought up restaurants. i tried to get this into bars and restaurants? j.w.: it is both. that is the two major prongs of our strategy, a robust direct to consumer business and on premise where people deeply care about taking care of guests. blue note jazz club is one of our account and they sell $12,000 extra a month just of curious to people already coming into their guys club. --jazz club. if you do not have curious on the menu, you are leaving money on the table. katie: like you said, it is a two-pronged approach, you want to be direct to consumer and in bars and restaurants. which is more meaningful right now? j.w.: for lasting cultural change it is more important to get interest runs in bars and hotels. we are in a few -- in

restaurants and bars and hotels. we are in a few thousand right now. that is what we will focus on the next 10 years. we are about to celebrate can years being in business. the next 10 years is working with groups of professionals particularly on premise and restaurants, bars, hotels, resorts, so they can educate their existing clientele and make them more money. they feel included and they get to celebrate and kick back something to listen. katie: i want to talk about what is next for the business. i asked you whether it was safe to call you a serial entrepreneur because you founded a marketing agency in the past, you build bars and restaurants, and you founded curious elixirs in 2015. would you be open to a sale? what are your plans for the future? j.w.: right now we are focused on growing sustainably and investing every dollar we have back into the business to help create this lasting generational

change. our mission is to transform how we drink socially through the best nonalcoholic drinks in the world. since we are continuing to grow, we are not focused on selling a business. we are focused on making sure these changes don't repeat the mistakes of prohibition. it is not that alcohol is a problem, is that too much alcohol is a problem, and we need better solutions when people are already trying to drink less. we launched our most recent flavor and we did that in 100 cities all in one night. that is the sort of thing where 100 different hosts throw their own parties, that is what makes lasting cultural change. those are the things you will continue to see from us. katie: that is rose, right? j.w.: rosy rose with fizzy line. katie: great drink for the summer. let's get a check on equity

markets. we will do that with simone foxman. simone: we are seeing gains in the s&p 500 today, but it has been a rocky week. we are eating away at some of the losses from earlier in the week. part of that is what is the fed going to do and when. at least for the moment, the message higher, five basis points higher than the beginning of the week. u.s. dollar on case for its best stretch since april 12. wti hitting its lowest level since for peru 23 this week -- since february 2023 this week. we do expect oil supply cuts to remain in place for the second half of the year.

looking at the commodity sector, some of the biggest pullback, big pullback since hitting its highest level in about a year here. oxford economics say a lot of bold piled into the commodity space, especially the metal space, after the china reopening trade in 2022, and now they have gotten over their skis. gold down about 3%. potentially the biggest loss for copper since february, after it hit an all-time high friday. i know you're paying a lot of attention, katie, to what is happening in the crypto markets. we'll be talking more about that today. the sec signed off on a proposal that cboe, nasdaq, and the new york stock exchange to allow products tied to ether to be listed. we have seen ether jumper 20% this week.

bitcoin is roughly flat. i think the story is what the impact of allowing exchange-traded products has been. we are liking at the price of bitcoin up 60% this year. katie: fascinating to see what demand for the products looks like if those etf's get the green light to list. our thanks to simone foxman. picking up the post-covid pieces. a restauranteur highlights the new normal for eateries. this is bloomberg. ♪

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katie: it's time for "wall street week," and we are talking about the lifeblood of new york city, its restaurants. melba wilson open her restaurant , melba's, nearly 20 years ago. david westin sat down with her to talk about the challenges she has faced and what is next on the menu. melba: i am born, red, and buttered in harlem. 114th street, frederick douglass, was one of the most notorious drug blocks in the community. there's a school down the block, midway down the block, and it broke my heart to know that schoolkids on their way to school, to learn, had to witness that type of activity. i always said i -- i complained about it, but what am i going to do about it? on a flight one day, i heard a flight attendant say like they always say, "in case of an emergency, put on your masks first." i said how am i putting on my

mask? how am i changing my community? when i went home that day, and my parents are from the south -- literally, my father is from a very small town, three stoplights, hemingway, south carolina. they grew up saving money under the mattress. they didn't trust the banks. at one point, black people could not bank anywhere. it's like, their money wasn't good. there was a habit that was formed -- my grandmother did, my great grandmother did, it would take money and put it under the mattress. what did i do? whether i got paid, -- whenever i got paid for my put a little under my mattress, and let me see how much i saved up. i started counting and counting and counting. then i got scared -- it's a lot of money. i saved up $312,000.

david: in cash? melba: in cash. what am i going to do with this? i decided to change my neighborhood, to be the change that i wanted to see. well, on the southwest corner of 114th street, there was a space on the corner and it said "for rent," written in black sharpie with a phone number. i called the number. the gentleman said, "have you ever opened a restaurant before?" i'm like, no, i worked in milan. he said -- i worked in a lie. he said, "can you meet me tomorrow." i checked further uptown and i went and met with him, and the rest is history. david: how did you suffer through the pandemic at melba's? melba: the pandemic was a really, really rough time for us.

new york city is the city that never sleeps. i heard that the city was going to shut down. did i believe it? absolutely not. you can walk down the street at 3:00 in the morning and find a vibrant community filled with music and sites. -- sights. to believe that new york city was going to shut down? never. but it did. david: now that we have unfortunately come out the other side, it appears, of the pandemic, how is melba's different? do you still do dine-out, for a simple? melba: now we have outdoor dining -- we had never had outdoor dining before, so that is different. but we have reached into innovative technology. qr code? come on now. i'm a little bit of a 40, definitely over 20. qr codes, who would've thunk?

you couldn't touch the menus. we didn't know what to do, what not to do we have become more tech savvy. that's really helpful to also when you look back of the house in front of the house, that has always been a big deal in a restaurant. tale of two cities. now there is one house. covid really taught us that we have to work together as a team. as president of the new york city hospitality alliance, former president -- i just stepped down from a four-year term, serving five years -- some of the biggest restaurants in the city, and then the small mom-and-pop restaurants like melba's. we reached into each other. we reached out to each other. we tuned in with each other. most importantly, we were there to support one another. david: you talk about help you got from other restauranteurs.

how does the trade-off happen? when are you cooperating, when are you competing? melba: oh, there is a lot of competition. ultimately there is also camaraderie. it is so interesting, i'll never forget when i would go meet and there would be tribeca grill one corner, but then there's nobu at the other corner. i would think to myself, aren't they competing with each other? because that is what i was raised to believe. no, what they are doing is you might go to tribeca grill today, but then you will go to nobu tomorrow. when i first opened melba's on 114th and frederick douglass, there was no other restaurants in that block. there was a chinese restaurant, take down the street, frederick douglass -- take him down the street, frederick douglass, and there were no other restaurants.

however, 8th avenue, frederick douglas boulevard, has become restaurant row. the beauty is that someone may go across the street and see the others restaurant and say, "oh, what is that melba's across the street?" we feed off each other. people did'think it was about being competitive, but now it is understanding we are our brothers' and sisters' keepers. katie: that was restauranteur melba wilson and david westin. this is bloomberg. ♪

so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

katie: there is a growing chorus on wall street warning of an upcoming retirement crisis. blackrock ceo larry fink says the fix is working

longer, but is it? sonali basak is here with on the retirement problem. is that the fix, just keep working? sonali: two a woman who works at the new school, labor economist there, spoke about the future of retirement. no, it's not the answer, and the reason being, most people cannot work longer than the existing retirement age. many people in america do not really have access to those traditional retirement plans as we think of it. as we think about the future, its gets even more complicated, because that burden is shifting more into the hands of the individual rather than to the employer. let's take a quick listen to hear what she had to say about this. sonali: if you think, mr. fink, that people working longer, one year or two years longer, will

mean people won't go into their old age without being downwardly mobile into poverty from being a middle-class worker, or you think that working longer will maintain people's living standards, you will be wrong. sonali: this was the idea that most americans cannot work longer. blue collar jobs, people who work to really service people of all the rage. we have a lot of baby boomers -- service people of older age we have a lot of baby boomers retiring. these are physical jobs. katie: it's such a great point an important point when you think about larry fink's comments that, to your point, we cannot stay in manual labor jobs longer than they already are. who is-- whose responsibility is this? this is the individual, is this the employer, is this the government when it comes to this looming retirement problem? sonali: in part it is the

individual and in part the government. one thing that is interesting about teresa is she says the 401k system has failed us. it's not people who cannot put money into a 401(k) should not, they should, especially because it comes with a tax advantage. but she also has this plan currently in congress that she and kevin hassett rode the background for to start creating this government superfund. think about australia's superfund. it would look like that where it would be a government plan being created. so far this has bipartisan support in the earlier days, but it is a plan that blackrock and larry fink have supported in the past. katie: it is an interesting issue and you can read the full interview in "bloomberg markets" magazine. out thanks to sonali basak. s&p 500 at session highs, currently up .6%. we are just about flat on this

week. coming up, we have "bloomberg technology," but that does it for "bloomberg markets." i'm katie greifeld. have a great weekend. this is bloomberg. ♪

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announcer: from the heart of where money and power collide in silicon valley, this is "bloomberg technology" with caroline hyde and ed ludlow. ♪ emily: i am ed ludlow in san francisco. coming up, spacex weighing an offer that would value the company at $200 billion.

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