katie: we are 30 minutes into the trading day on this friday, june 7, they added 272,000 jobs last month rising above and beyond all estimates. president biden expected to speak this our. the rent the runway founder and ceo joins to discuss what is in store for the company. revival in michigan. the ford ceo talks about efforts to revitalize detroit's business environment.

i am katie greifeld in new york. welcome to "bloomberg markets." take a look at markets on this friday. after the blowout jobs report, we are paring back losses. the s&p 500 lower .1%. same thing if you look at the nasdaq 100. we could end green on this friday. the bond market is a much different story. the selloff pushing yields on the 10-year treasury higher by almost 14 basis points. we are headed back to 4.5%. we will see if we get there. let's go back to the jobs report this morning. job growth searching and wages accelerating as well. however, the unemployment rate also arose for the first time in two years. mike mckee is here to break it down. you have had about 90 minutes to think about it. what is the takeaway?

mike: president biden is speaking. not hard to guess what he will be touting. 272,000 jobs created last month, well above the estimate of 180,000, above pretty everybody's estimate for the month. quite a surprise. we saw a revision to 165 in april from 175. a total of 15,000 over the last two months. that is negligible. the first time unemployment is over 4% in two years. that is largely because of a quirk in the household numbers. they show a big decline in jobs created while the labor force rose put average hourly earnings are up 4.1% year-over-year, bigger than expected rise on the month. some of that may be a calendar quirk. some of it maybe california raising its minimum wage during the month. average hours worked did not change. no sign things are going south.

the average hourly earnings number still well above where the fed wants it to be. where they think it would be sustainable. they would still have some inflation worries and that is why people are pricing out extra rate cuts. there are a number of reasons why this is an interesting report a lot of people will be looking at. the seasonal adjustment factor for jobs was fairly large as it usually is in may. 681 difference between adjusted numbers. the prime age dissipation rate the highest since 2002. teenagers left the labor market while they were getting ready to get summer jobs. the household numbers versus establishment numbers will have people talking. overall a strong report read until next wednesday when we get cpi, the onus is going to be on

the fed to start thinking when or if it wants to cut. katie: the fun continues next week. we are very lucky. have a great weekend. let's broaden the conversation because joining us is the director at citi research. i want to talk about the resilience we are seeing. futures dropped after we got those numbers at 8:30. now we are coming back look at the weekly performance. nasdaq 100 big tech up for the week. it almost feels like what is going on in the economy does not matter for stockmarket. >> actually agree with you. it almost does not matter for fundamentals. if we go back to the 1970's, gdp and earnings growth highly correlated. today, that has dropped substantially. when we think about the market,

there are two components. the cyclical side, today's report and the economic data feeds into that. and then there is the structural side. that is the themes like ai that we talk about pretty much every day when you think about u.s. markets. katie: when it comes to fundamentals and what is going on in the economy not mattering much, it has to help that the big seven tech stocks will almost make money except for tesla in any environment. >> that is the structural here. we have been thinking about this the past few weeks. how much is the market worth without the structural? let's call it 4600. if you think the structural themes are a bubble and will go away, that is 15% downside. that is not the worst-case scenario. the bullish side, if a lot of the trends driver earnings, ongoing earnings resilience, earnings acceleration, you can

see the market being worth something like 6200 which gives us a lot more upside. katie: that is a lot more upside. when you wrap it altogether, i want to ask you the same question i asked andrew 30 minutes ago, you think the speculative ferver. gamestop is positive because of volatility. what we are seeing in terms of the speculative fringes of the market reigniting. does that give you any pause? >> yes, it does. we track sentiment and publish it every week. i feel it we are telling the same story we work two or three month ago when we first reached 5000 and ran up to 52-53 before pulling back. sentiment is really high right now. we call it euphoric. other people have differ words for it. that is why when you get good economic news, even though it should drive part of the market, we have trading action like we

do today. when sentiment is high, you need a lot more good news to break it higher short-term. katie: what does an investor do with this? overall, it sounds like green light. 6200 on the s&p sounds good. are there areas of the market you would avoid? >> to us, it is the company's not making improvements. we get a little worried when we drop down to small cap, not to say there are not good stories, but the issue is those are companies that do not have as clean balance sheets. they have not been able to invest in businesses. throw around a lot of free money, that is great for large caps that can invest in growth and structural trends. but for companies that needed the liquidity to fund ongoing operations, you need a lot of cyclical tailwinds and rates to come down. if you look at an action on a day like today, you probably have the russell lagging like earlier in the day.

katie: there are some areas of the market that do need rate cuts. when it comes to the small caps, maybe you do need it. meditating longer on small caps, there are some single stock stories. you can probably find them. is the juice worth the squeeze? would you be better off with bigger names? >> we like barbelling them a little bit. it is more mid-cap on our focus list. i cannot get into single stocks. you will have to have me back another time. when we think about these other trends like digital leisure and fintech, these fall outside of mega cap, those are interesting to compare with something like ai. do not sleep on infrastructure. katie: don't sleep on infrastructure. i never will. i want to bring the conversation back to what we are seeing in the rates market. it seems the fed expectations have not made much of a dent in the market. you think about volatility at the long and. does that start to matter at

some point? >> yeah, and cross-asset valuations. why go into risk assets when i can get 5% on the front end, yes, but how you get over the valuation hurdle is fundamental growth. fundamental growth stories, green light, the value side of the market, the cyclical deep side of the market, you do need rate cuts. katie: it feels there are a lot of great traps. how you avoid them is a different conversation. you think about the ultimate 6200 call you have, what could the path to get there look like? andrew is expecting a draw down in the next couple of months. bullish overall. over the summer, things can get hairy. what is your road to 6200?

>> 6200 is the very bullish case for us. we are talking low teens growth in earnings for five consecutive years. coupled with that, you will need the 10% that falls 4% and for the fed to cut at the front and. katie: what gets it sub 10%? >> if we have productivity gains and that drives inflation down to more normal levels, you could see fed cuts. i think more fair value for that structural trends is 5500 if we do not have massive cuts. we could buy some pullbacks in that scenario. the market does not really scare us because the fundamental trends are intact. that is what drives equities long-term. katie: great to see you. have a great weekend.

our thanks to drew pettit of citi research. let's look at what is moving underneath the markets. moving again is gamestop. >> gamestop is trading again. what a roller coaster ride today. now it is down around 20%. earlier in premarket trading, it reached around $64. it kind of makes sense. when we look at the options pictures, the put options, extreme buying and selling. the big surprise is gamestop shares were swinging after the company released earnings. a big part is the plan to sew up to 75 million additional shares. a lot of hype about the stocks is everyone is expecting [indiscernible] there are around 20,000 people already commenting.

it is not up for another one or two hours. everyone is expecting the call today. we are yet to see if we will see another double-digit gain today. katie: i am so excited. i will be watching the livestream, not on live television. let's talk about on the heels of the first investor day. >> a lot less volatility but a positive reaction for the stock. and has been underperforming the s&p this year. this is much needed relief. the company boosting ratings in the quarterly and yearly outlook expecting to grow 50%. bank of america upgraded the stock to buy saying they provide good targets above what the street is expecting. it increases confidence.

everyone is placing a lot of hopes on the ride-share services, so that is kind of the big boost we have seen today. the stock is up around 3% today and has significantly underperformed this year. the company may need a lot more to see big gains this year. katie: definitely. a little relief today but still a long way to go. certainly having a better day than doc you sign -- docusign. >> the company is down 16%. the company was doing so well. we had news about layoffs. the latest earnings report is a good earnings report on its own. expectations about the future are not providing much relief for investors. the forecast for the second quarter fell short of average analyst estimates. some analysts say the quarter was fine but expectations are high and it is not enough to support the stock.

it is down 16% this year. they need a big shift in the narrative to pop up the stock. katie: thank you for that round up. coming up, more insight into the strong payrolls report. we will be speaking to constance hunter next. this is bloomberg. ♪ to start a business, you need an idea. it's a pillow with a speaker in it!

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>> it is true there has been immigration based growth also. it has been true throughout our nation's history that immigrants have helped do jobs and feed the economy.

the majority of the job growth has gone to foreign-born workers. katie: that was acting labor secretary julie su in the last our. let's get more on the hot jobs number. joining us is constance hunter. 272,000 jobs, blowing out every estimate in a bloomberg survey. were you surprised? i was surprised. >> we were expecting a number closer to last month. i will say this. when we look at our models, they are still being impacted by the distortions of covid. julia coronado who spearheads our labor market core pass goes deeply into seasonals. it is becoming harder to forecast. not that it was easy to forecast prior to covid. it is one of the most revised

numbers because we sacrifice accuracy for timeliness. it comes out right when the month ended. that is why there are so many revisions. that is why it is surprising. looking under the hood, it is not inconsistent with what we are seeing which is a slightly softer labor market in 2024. and a labor market that is not inflationary. when we look at wage growth and inflation plus productivity, wage growth is still below inflation plus productivity. that is good for corporate profits. reports suggest we are still in a situation that comports productivity gains. the longer people are employed, the greater that is for productivity. katie: let's stay under the hood. look at all the different components. you have the headline number, the unemployment rate, labor force participation, and wages.

what is the most important part of this specific report? where is the biggest signal in your eyes? >> i will preface this by saying the jobs data is at best a concurrent indicator. it is likely a lagging indicator. we are looking at things like hours worked which did tick down slightly. is that signaling employers are hoarding labor? probably not if they are continuing to add at this pace. and when we compare that with the diffusion index that looks positive, and positive in the manufacturing sector. the most recent ism number did show a rise in manufacturing employment. those things add up. they show there is breadth to the hiring. that is a good sign for the economy proved there was concern as we were ending 2023 that it was narrowing. that seems to have broadened out

and that is a good sign for the economy. katie::. go on. >> when i look under the hood, it looks solid. we have to look at what is happening in the household survey. that diversions continues. let's look at the jolt survey. if we look at all the surveys together, we see employment is slowly increasing at a lower pace each month. you should never take one number by itself. that is why we do three-month and six-month moving averages. we see a gently softening labor market. what does that remind you of? a soft landing. katie: good perspective. think about what we heard from jolts and adp, maybe it takes some edge off what we heard from nfp. we have some news coming out from citigroup economists

changing the first rate cut to september. he had been on for july. no longer. i'm sure there are plenty of people asking, how does the fed cut at all this year when you look at the labor market? >> citi was forecasting a recession. that is why they were forecasting a july rate cut. the jobs report is not recessionary. it is soft landing. we were at september already. the reason we think the fed will be able to cut in september and december is we think inflation is going to proceed with moderation. it is going to keep increasing at a slower pace. we see the beginning of the year as someone off adjustments. we are going to see some feedthrough from real-time rent indices into the housing component. we do not expect server core services will keep increasing at the same pace. we think good disinflation is

going to continue. when you wrap all of that together, it points to a moderation in inflation and ultimately, as long as the labor market is not overshooting which this report does not suggest an overheating labor market, we are in a good place for the fed to have confidence cutting rates as long as inflation continues to moderate as we expect. katie: i only have about 30 seconds left with you. the piece on inflation requires inflation moderation. what odds do you assign to the fed not moving at all this year? >> i would say it is about 15% to 20% creed we did some analysis about the possible middle landing scenario and played with different aspects of inflation. to put that to work, you would need an acceleration of super core. we do not see that significantly accelerating. you would need shelter not to

reflect what is happening in real-time rent. that seems highly unlikely. it would seem a december rate cut might be the no landing scenario. we will get more information next week. the inflation data has confounded us, i say broadly economists and the fed. we will have to take it data point by data point. katie: definitely stay tuned on that front. really appreciate you making time for us. our thanks to constance hunter of macro policy. we will look at companies making the most social buzz today in our social climbers segment next. this is bloomberg. ♪ a future where you grew a dream into a reality. it's waiting for you. mere minutes away.

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this morning. first, netflix getting hit with a defamation lawsuit from a woman who claims to be the inspiration behind the main character in the hit series "baby reindeer." she is suing the streaming giant for at least $170 million, alleging the creators exposed her identity and ruin her life. netflix says it stands by its content. next, the resorts are on a slippery slope after missing estimates and lowering guidance. the stock getting the icy glare from wall street with a number of banks cutting price targets. there is a latte to love about this story. starbucks has a deal with grubhub. the delivery service will roll out in select markets this month with national availability in august. starbucks has been roasted on social media recently for longer in-store wait times. you can follow all the latest company buzz on your bloomberg

terminal. coming up, rent the runway just missing estimates in the first quarter. we will be speaking with the ceo, next. this is bloomberg. ♪

katie: rent the runway out with first-quarter results this week as it focuses on brick-and-mortar stores. here to unravel the details, we have and ceo jennifer hyman. great to speak with you again. i want to talk about cash flow. your goal is free cash flow breakeven. you reported the burn was just 1.4 million dollars. that is a record low for you. could the number be positive for the second quarter? jennifer: we are really excited about our results and coming in

ahead of where we thought, where we gave guidance we would be on revenue, free cash flow. we are seeing the business has returned to growth. all of the input metrics are moving in the right direction. we are really excited about bringing business to profitability and showing the strength of the core business model and unit economics. katie: it was interesting. i was reading through last night's earnings call. you said you are reopening the retail stores and will make retail the priority the next few years. it feels like more and more of our lives and shopping experiences are moving online. tell us about the return to brick-and-mortar, the flagship, physical store. jennifer: so much of our retail experience prior to covid was not just about sales that were occurring in the store. we had great sales per square foot. but what was more interesting about our stores was the

community brand building activities they did in the market. we know the biggest problem in apparel, especially commerce, is fit. that is why there is such a high rate of returns. suddenly, you have a physical store in a market and people who might have been fearful of converting online now know that if there is a problem, they can go to the store and try something on in advance before the special event to make sure that it fits. we saw our stores were activators for the entire market to grow prior to the pandemic. we also built out technology similar to amazon go in our stores where you could grab anything off of the shelf and it had that feeling as if you were shoplifting. women would come into the store to get dressed for work every single day. they would come in in groups

after work to get dressed for the night out. that built the virality for the markets we were in. we will be super aggressive about going into retail throughout the united states. we are opening our flagship store in new york again this month. it is a soft launch for the summer with a huge launch in september. we believe the online plus real-life experiences drive not only tremendous growth but brand love. katie: really appreciate the color, the thing about these stores, that maybe it will help conversions into online subscribers. fit very important. it's talk about the super aggressive push across the country. 50 stores, 100 stores, what numbers do you have in mind? jennifer: we have not shared our numbers yet practices all within the context of being a free cash

flow breakeven business this year. we are not viewing this as our retail push as documenting at all from the financial plans of the business. we see that our charge and what we talked about yesterday is we are refocusing all our resources in the company on marketing or consumer product growth. a huge part of marketing for us is getting out of the bottom of the final advertising on social media platforms and into mid-funnel and top of funnel. that means we are rebuilding our brand. we will be showing up in life, real life, building partnerships, building back ambassador networks, making sure the virality that has always existed for rent the runway is accelerated and amplified. i think you do that by building advocacy. people do not advocate or refer brands they do not love.

you cannot fall in love with a brand based on an ad off meta. katie: i think that is a good point. when you talk about marketing, to your point that you are focusing more on referrals and some of the top funnel items, how important is word-of-mouth to your brand? jennifer: word-of-mouth has always been our biggest channel. over the last 15 years, over three quarters of our customers have come to us via word-of-mouth. our product is very much one way or if you are proud of that experience, if we deliver great operations and customer service, and you go to a party or work, you will share with your friends and colleagues that you have rented. we benefit from the fact that when we deliver excellent customer experiences, it sets off great customer virality. marketing should accelerate that customer virality that is already there and drive even more customer base to come in through word-of-mouth.

katie: when you look at your use cases, i understand 50% falls into the casual categories. the rest is divided between work and special events. is that the right mix? is there some optimal mix that you are shooting for? jennifer: there is no optimal mix. i love the fact that the mix is back of people using us for work, special events, vacations, and everyday life. throughout our lives, the percentage of special events or work fluctuates. we want to prove to the customer we are there for her and are a resource no matter what is going on in her life. for an example, i had my first kid four months ago. throughout my entire pregnancy and postpartum explains, i have been changing size. it has been a resource for me but i have not had to buy clothing i know i will not wear again. no matter what is going on in her life, we want her to feel that we have the selection for

her. we made significant improvements in our inventory depth and selection throughout 2023. inventory churn is down 21%. our net promoter scores are the highest in years. our overall loyalty rates are the highest in years which gives us further indication this is the exact time to put our foot on the gas pedal in terms of growth. katie: congratulations on the birth of your child. that is amazing. you mentioned inventory in that context. i only have about a minute left with you. you are at about 50% of inventory owned. is there a specific number you would like to get to when it comes to the inventory side? jennifer: we are about 50% of the inventory via revenue share, meaning we do not pay for it upfront or we pay very little upfront and we revenue share with our brand partners.

they do this with us because they view us not just as a sales partner but more importantly as a critical customer acquisition channel for them. what this does for our business model is we do not pay for inventory unless it works. it eliminates fashion risk on 50% of our inventory, which is the achilles' heel of most fashion businesses and something we do not have to deal with the same way. that percentage of revenue share has gone up tremendously the last few years. 2019, less than 10% of our inventory was on revenue share. now it is 50%. we are working on a revenue share with hundreds of the top brands all over the world. it is a very exciting component of our business model that makes us capital life but also removes risk from the model which i think is one of the most underappreciated aspects of the

rent the runway story. katie: appreciate the time. have a great weekend. are things to jennifer hyman, rent the runway co-founder -- our thanks to jennifer hyman, rent the runway cofounder and ceo. >> today's price action is mainly across the bond market. we saw a big spike across the board trade the 10-year yield spiked 13 basis points. the two-year yield was up about 15 basis points. stocks were lower but then they erased earlier losses. bitcoin was down by about $1000 after the jobs report. on a weekly basis, stocks are up 1.5%. it is down 2% and on pace for a third weekly loss. the next big pressure comes from opec-plus. they decided to gradually bring back the barrels to the market which is bearish for prices.

all conversations right now are about interest-rate cuts from the federal reserve. let's look at what the market is pricing in. we see until the end of 2024, the market is pricing in about 1.5 rate cuts. we will keep an eye on what it means for stocks. positioning remains stretched. some analysts are saying encase stocks move lower, there is some pressure that can come potentially from commodity trading advisors that can sell stocks at a huge amount if prices move lower significantly. in terms of specific stock movers, nvidia is rising ahead of the stock split. gamestop is the most notable mover, down 20%. that is after the company announced it plans to sell about

35 million shares. katie: thank you so much for that update, about one our into u.s. trading. we want to take you live to normandy, france, where president biden is delivering remarks on democracy. >> ♪ >> ♪

>> ♪ >> ♪

>> ♪ >> ♪ ♪ >> please welcome the 46th president of the united states

of america, joe biden. [applause] president biden: please, sit down. at last, the hour had come, dawn , the sixth of june, 1944. the wind was pounding, as it is today, and always has against these cliffs. 225 american rangers arrived by ship, jumped into the waves, and stormed the beach. all they could see was the outline of the shore and the enormity of these cliffs. i know i will get in trouble with the secret service if i go to the edge and look over. those clips are what we are standing on top of. all they could hear was the crack of the bullets hitting ships, sand, rocks, hitting

everything. all that they knew was time was of the essence. they had only 30 minutes to eliminate the nazis high on the cliffs. these were american rangers. they were ready. they ran towards the cliff and mines planted on the beach by field marshal rommel that exploded around them, but still they kept coming. gunfire rained above them but still they kept coming. nazi grenades thrown from above exploded against the cliffs, but still, they kept coming. within minutes, they reached the base of the cliff. they launched ladders, ropes, and grappling hooks. they began to climb. the nazis cut their ladders.

the rangers used the ropes. when the nazis cut the ropes, the rangers used their hands. 10 inch by inch, foot by foot, yard by yard, the rangers literally clawed their way up this mighty precipice until at last they reached the top. they breached the atlantic wall and they turned come in that one effort, the tide of the war and began to save the world. ladies and gentlemen, yesterday, i paid my respects at the american cemetery a few miles from here where many of those rangers died taking this cliff are buried. i spoke about what they had done to defend freedom. today, as a lookout on this battlefield and all of the bunkers and bomb craters still surrounding it, one ought comes to mind. my god, my god, how did they do

it? how were these americans willing to risk everything and give everything? they were americans like sergeant leonard lomal of new jersey, one of the first rangers to jump off the ship and run toward the cliff. he almost was shot right above the hip. he was not sure, but he was. he kept going. at one point, he was scaling the cliff and another ranger yelled, "i am not sure i can make it!" yield back with every ounce of strength he had in him, "you have got to hold on!" he did and they did. americans like sergeant from massachusetts. they hit his boat as they approach the shore. everything exploded pretty sergeant was knocked into the freezing water.

as he told it, he began to utter a prayer. "dear god, do not let me drown. i want to get in and do what i am supposed to do." americans like colonel james rudder from texas, who asked for this mission. he raised his hand and said my rangers can do the job. he knew their capacity. he knew the strength of their character. a few days after they scaled the cliff, he wrote a condolence letter to the mother of one of the rangers who gave his life here. that letter said, " country must be great to call for the sacrifice of such men." americans like john mordell of new jersey. john is here. we love you, man. thank you for all you have done.

[applause] katie: that was president joe biden speaking in normandy. you can continue to follow those remarks on your terminal on live go. ♪ katie: it is time for our "wall street week" conversation. we are focusing on detroit's revitalization. david sat down with jim farley to talk about why the iconic automaker is spending $1 billion to transform an abandoned train station in motor city. >> the train station is very much a symbol, a mark along our journey to create a great company. we avoided bankruptcy which was amazing in the early 2000's. but to build a vibrant company in the ev world, the digital

vehicle world, the train station felt like the right project for ford to be part of so we could be part of the revitalization of detroit which had been used by national media as an example of the decay of the country. this felt like the kind of project that would be emblematic of our recovery is a company. david: as we look at this glorious building as it is now renovated, we are reminded of a time in detroit history where it was a very proud city, much to be proud of. describe how this represents that pride in detroit. >> if you go back to the origins, the architect was the same as grand central station. detroit was the most prosperous city in the country. it had very progressive leadership. there was a lot of wealth here because of the auto industry. a lot of people came from all

over the country like your family, my family, for a better future. now, we are in a different era where detroit is going -- growing after decades. almost since the 1960's, it has been shrinking. now, it is growing again. this will be an innovation hub with many non-ford people in the building. i think it is a good example of what can be done after a lot of hard work. david: you go back and look at the time this old and was built. it was thriving. ford motor was at an apex as well. your grandfather worked at the plant. take us through what ford motor was in the 1920's and 1930's. >> it was like working at apple. you could not find a better job than ford. the $5 wage had transformed the middle-class. my grandfather is a good example. he was not an educated man but

he had a great job at ford. his kids went to college eventually. just like your family, there are millions of people around our country, around the world, affected by ford. at that time, ford was the pinnacle. we had 80% market share globally of the car business. we were working on our second vehicle called the model a. we went from buying our parts from other people to a completely integrated plant where we brought in iron ore from the great lakes and made our own steel and glass. we had our own lumber farms where we created, used all of the wood for the cars and the packing of the cars. it was the first integrated assembly plant in our industry. everyone copied us. everyone copied ford because of what we did in the 1920's and 1930's. it was the pinnacle of efficiency.

maybe not the easiest place to work. david: what happened and when did it happen? when did it lose that luster? >> world war ii was a big challenge for the company. when henry ford ii led the company back to a revitalized state, we hired all of these logistics experts from the army after world war ii. they created this kind of bureaucratic but incredibly efficient machine. the company was back in the 1960's. and then, the energy crisis came. the company did not have efficient vehicles. it was not competitive among quality and lost its way in the 1970's. as well as the city of detroit, after the riots. we were lost. during the 1980's, we had a huge revitalization in the company. largely through our european leadership. we got serious about quality, quality was job one.

the company really found its way again. and then, it happened all over again. where i worked at toyota, a young person with my family from detroit, that was the best car company when i graduated from business school. efficient and really focused on the customer. i think along the way, we found out what we were really good at. now, we have restructured the company and we are really profitable looking at maybe a record year this year. but it has been a journey. it is a very american story of starts and stops, of great leadership at moments, but at other moments, a loss of focus on the customer. david: is it possible ford became too proud of what it accomplished and was not paying attention to the toyotas of the world? >> of course. today, we have the same competition again from the

chinese who are incredibly efficient. this is the truism of an industrial company. katie: that was jim farley, the ford ceo, and "wall street week" host david westin. meanwhile, fidelity flexing its muscles in efforts to get payments from etf firms in exchange for listing on its platforms. joining us on this etf friday is emily graffeo. give us the breakdown. >> we have been watching this since march when fidelity initially put nine etf firms on notice saying the end investor would have to pay a $100, up to a $100 surcharge, if they did not agree to a revenue sharing plan. fidelity has negotiated with those firms. but they are targeting a broader swath of etf issuers.

we have learned they have told these issuers if they did not agree to a revenue sharing plan, they would bury the etf funds in the fidelity search bar. when an investor will log onto the platform, they will not be able to easily search for these funds. these are ongoing. we are wondering which other firms will be put on notice or if fidelity will be able to come to an agreement with a number of etf firms. katie: we are also wondering what schwab will do. what do indications suggest? >> that is the big question. will schwab uses us the opportunity to say come use our platform -- use this at the opportunities who say come use our platform or will they use this as an opportunity to say this is the industry standard, this model has been around in the mutual fund world, we are just now applying that to etf firms? we know revenue sharing is not as commonplace in the etf world.

katie: emily graffeo, thank you so much. coming up, the ceo of lyft joins "bloomberg technology." that is it for us. i am katie greifeld. this is bloomberg. ♪

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her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

>> this is bloomberg technology with caroline hyde and ed ludlow. caroline: i am caroline hyde at bloomberg world headquarters in new york. ed: and i am ed ludlow in san francisco. caroline: we sit down with the ceo of lyft as the company holds its first ever investor day. ed: and we take