>> 30 minutes in the u.s. trading day, here are the top stories we are following. wall street's big week, traders have little time to catch their breath after the blockbuster job spring. it brings a double whammy of cbi and the fed's rate decision. we will preview the action. apple ai reveal, the annual worldwide developers conference kicks off today and investors are hoping new ai features will be enough to spark an iphone upgrade cycle. a turbulent summer travel ahead. airlines are leaning on discounts to help fill a surplus of seats on airplanes.

we will discuss the summer travel season with james for errer. ♪ >> i'm katie greifeld in new york. welcome to bloomberg markets. take a look at markets on this monday. there is read on the screen. the s&p 500 is up by 2/10 of a percent or so. same thing for nasdaq. down 2/10 of 1% when it comes to big tech names. looking at small caps, the underperformer so far is down about 7/10 of a percent. about 30 minutes into trading. in some ways, we are in a holding pattern because we are counting down to wednesday's fed decision and the cpi print. ed's are pushing out their rate cut expectations following a stronger than expected may jobs report. mike mckee is here to break it

down. i feel like i am still digesting the friday job spring. but we are back in the action this week, again. mike: we are back in the action although markets are probably going to be on hold until wednesday morning. i will give you today offer good behavior. a lot of economists have looked to small business for clues to direction on the u.s. economy. that will get some attention. of course, wednesday is the big day. you mentioned cpi and the fed. cpi will be the big one for the week. it will set the tone for trading for most of the summer. we are expecting to see on a monthly basis a little bit of a decline. but, no change in the year-over-year numbers. the opposite is true for the core. what does that tell us? does it tell us that the fed has enough additional confidence to start cutting rates. that will go to the dot plot. we will look at the dot plot

first thing to see if they have gone to two rate cuts or even one rate cut. two might be more likely. it only takes one fed official to change their mind to get to two. it would take six to get to one. everybody wants to know what the neutral rate is going to be and where are they going to end up when they start cutting, they went up a 10th of a percent to 2.6% but nobody think that's the issue. we have a lot to digest this week. especially on wednesday. market analysts are saying this is going to be the data that moves the market into position for the next couple of months. katie: it's very exciting to get that blockbuster print, the top-tier data release on the same day that we hear from jerome powell himself. i asked about a potential rate hike on friday. i got shouted down by our guests. but is there a possibility the fed does not cut at all this year? mike: there certainly is that possibility if we get a reasonably strong cpi, if it

goes up at all, that will take more off the table. it would be interesting to be a fly on the wall in the room during the fed meeting. they get the cpi report a few hours before they release a decision. will it lead to any changes in their forecast? that will be an interesting question. katie: we will be keeping you close this week. appreciate the preview, thanks to bloomberg's mike mckee. spring this conversation to the markets. joining us is katerina, morgan stanley's senior portfolio manager. great to have you here to kick off this week. that stock about your expectations for wednesday, but also the year ahead. maybe not rate hikes in the future but do you think this is a fed that will be able to cut rates this year? >> katie, thank you for having me on the show. this year is quite full of surprises. especially as we look at

wednesday. this is data-dependent and data has been mixed. inflation is coming down but not quite as quickly as they want for it to be. manufacturing is improving. we are heading a strong labor market but consumer spending is coming down and we see consumers being more and more dependent on the strong labor market as there are rising concerns about the credit card debt. meanwhile, this economy has been overall growing. how do you make this decision? it will be -- would be perfectly natural that the fed would want to postpone the decision of the rate cuts that the markets put so much emphasis on. quite frankly, we are not expecting big surprises, either from the fed decision or from the cbi data. we think they are going to remain cold -- remain on hold and see what happens. katie: let's talk about market

expectations. traders have pushed back there rate cut expectations. lori said if we don't get a fed rate cut this year, the s&p 500 could fall by as much as 8%, which is dramatic to me, at least in my eyes. we've talked about it on this program and many people have said it does not really matter. what's your expectation? let's say the fed doesn't cut rates this year. what does that mean for u.s. equities? >> in our view, the fed most likely will cut rates. we may not get as many rate cuts as we thought at the beginning of the year but they have been vocal that that is the direction with which they are going. and if they decide to not cut rates, it will have an effect on the return of the s&p 500. but, with that, we are looking at the economic data and we are looking at the earnings and the state of the overall economy,

which should be something that will play a larger role than when the fed does or does not cut rates in the summer, for example, if they wait. this is where the diversification perspective, the emphasis of equality and position wealth for the portfolio return, so we are not just positioned to capture these wonderful returns, especially like we are seeing in wonderful sectors like technology. -- to be diversified and be ready for this unexpected decisions in case market were to perform in a way that we have not seen so far this year. katie: i'm glad you brought up diversification because there is a fantastic story talking about this bear market in diversification and one of the stats from the article is that diversified portfolios have trailed the u.s. large-cap stock index in 13 of the last 15

years. reading that, the question that comes to my mind is why bother with anything but equities? >> that's right. katie, it is so tempting to chase returns. this is one of the biggest challenges for investors. but yet, when you look at the concept of diversified portfolio, what it delivers is more of a consistency of returns. the point to be made for not just standing in equities is that we can't lose track of historically -- of the fact that we are in a historically high interest rate environment. that is why we are over weighing investment. it's nice to be earning interest on cash but also, with investment-grade municipal. high-yield, preferreds. this is the time to truly build that side of the portfolio. it will play a role going forward for many years to come.

but with that, on the equity side, it's also important to be diversified. look at the quality cash flows, to look at competitive positioning and pay attention to dividend and yields. we like certain aspects of the market outside of the technology. for example, we are overweight consumer staples versus congressional area. supplies not going anywhere and -- demand is not going anywhere and supply so limited. katie: it's also a good point that when you think about the last 15 years, rates have been at zero. the dynamic is changing. fixed income actually involves income. let's sit on that thought for a couple of minutes. we will take a look at what's happening underneath these markets. bailey lipschultz is sitting to my left. it is an activist monday. >> activist monday indeed. southwest airlines ticker, luv, up close to 7%.

trading close to $49 per share. that would be a 77% return. southwest's rigid commitment to a decades-old process has inhibited their ability to compete in the modern airline industry. calling out the stock reaction we have seen from southwest relative to delta or united airlines. katie: it's interesting to see traders welcoming this news. if i was the ceo of southwest, my feelings would be hurt. let's talk about crowd strike. it's a little bit of a graduation ceremony. >> graduation ceremony, up 8%. all-time high. this coming with the inclusion of the s&p 500. crowd strike, go dating -- go daddy and kkr will be added this month, falling through after crowd strikes stronger earnings a few days ago, a week ago.

shifting the narrative. graduation of the s&p 500, we know so much of investing is passive investing. investors flocking ahead of funds that will need to buy crowdstrike. katie: it might be technical but it is powerful, nonetheless let's talk about nvidia. they have been talking about it for so long and the stock split is finally here. >> down 1.6%. the stock has tripled over the last 12 months. i want to point out some of the chatter, nothing confirmed. when you talk about graduation and index inclusion, a lot of speculation that this could open the door for nvidia to be added to the dow jones industrial average. that is based on dollar price of shares. a little speculation. nothing confirming that. one thing to keep an eye on when you look at one of the largest companies in the world. katie: that would put some pep

back in the dow. that would be fascinating. we will keep an eye on that. bailey lipschultz, great to see you. numbing up, it's apple's turn to show off its ai prowess after a string of announcements from major chipmakers. more on the annual development conference, next. this is bloomberg. ♪

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

♪ katie: it's a moment of truth

for apple. the iphone makers set to lay out its vision for ai at its annual worldwide developers conference, kicking off later today. let's go to the ground with jackie dobb los who is there. this narrative has weighed on apples stock when it comes to ai. what are we expecting to hear today that could shift the narrative? >> we are expecting a big keynote address that starts at 10:00 a.m. pacific time and 1:00 your time, where tim coke will lay out the vision for apple and how it plans to infuse all of its products with artificial intelligence. what we are looking for here is detail on what exactly the types of features are that we can see across our ipad. iphones and macs. that will come with an operating system upgrade. in addition to that, thanks to

mark gurman's reporting, we know that it's new ai system will be called apple intelligence. this will be across its devices. we also know this is coming with a partnership with openai, where that chatgpt large language model will be used to power a chatbot for apple's products as well. the bigger picture here is just exactly how apple can use the voice control, the real generative artificial intelligence to power more hardware across its devices. think it's airpods, perhaps even robotics. the detail of how this new interaction or devices in large language models will occur is what we are looking for here today. >> it's interesting. when it comes to the idea that apple has fallen behind a little bit, think about siri. siri has been around, it feels like forever. in some instances they were a leader here and it feels like they are trying to reignite that

magic that they had. >> that's exactly it. siri is a great example of what artificial intelligence really is. when you think about this new era of generative artificial intelligence, the language models necessary to power that, that's where they fell behind. apple has their own language models but not necessarily up to the level that we have seen with openai and that level of sophistication. of course, they have had to partner with openai. they are having talks with google's gemini as well as mark gurman has reported. when you think about how they will be able to get ahead, they have a big advantage when it comes to their reach of their devices. billions of iphones and ipads in peoples hands already. no matter what they come out with today, they will already have a major leap forward. katie: appreciate that preview, jackie. our thanks to jackie d

avalos. katerina, we were talking before the break, you like things other than tech. we will get to those but let's talk about tech in a little bit. you think of how big it is in -- and the performance it is putting up, it feels almost impossible to ignore here. katerina: absolutely. katie, there is so much enthusiasm over generative ai and it is absolutely, without question, going to make a difference to the way we conduct business and improve across the sectors. technology is important. in our view, the valuations we are seeing should be perfectly fine as long as they are supported by the earnings and the positioning of the companies continue improving. the other side of the question is what is an appropriate exposure to any sector within the portfolio context? what we are seeing right now is a lot of investors have the portfolios that are overexposed in technology, because of the

level of growth that we have seen in the tech sectors over the last couple of years. we, by no means are telling anybody to divest from technology. we love technology. but we encourage reasonable profit taking and diversifying into other sectors of the market. katie: some profit taking and diversifying but what kind of allocation does it make sense to have in technology? can an investor afford to be underweight when thinking about contribution to the index? katerina: underweight, absolutely not. but appropriate waiting, that's where the question is. when we look at any sector, we have to take emotion out of the decision-making process and say what would be the maximum exposure to any sector that we are looking to have? this is an individual decision for any investor. there has to be a great degree of discipline to where we can see the portfolios are deviating

from the allocation that was originally sent by us. this is the time to rebalance. katie: this is the time to rebalance. i appreciate the color there for a let's talk about the world outside of tech. it's hard to do but there is plenty of opportunity outside of overseeing the magnificent seven. when you cannot the other areas of the stock market, where are you seeing those opportunities? katerina: we talked about energy a little bit and the energy is somewhat an easy decision because the sector performed quite well over the course of this year. there are other sectors that have not yet delivered results. if you look at the industrials and the performance so far, it really has not been open rate but we like the competitive positioning. we like the validations. and we think that this is an attractive entry point into the sector, when we are able to buy stocks, not at their real-time highs. katie: it feels like energy has

been under loved. you think about the biggest names in the energy complex doing quite well, boosting dividends, etc. and buying the shares. what does it take to get investors more broadly interested in energy? katerina: the chances are that we are going to decrease our use of energy are slim to none. we are dependent on energy as consumers. energy is well-positioned, especially considering the political position of the world and how the production and supply is somewhat limited. but, what we know about this year is that with a little bit of uncertainty, investors should expect a lot of volatility. this is where positions in the sectors like industrials and energy, and emphasis on the dividend income on the equity side of the portfolio will play a big role. we cannot forget that we are

going into an election year. it's not as if there isn't enough uncertainty in the market as is, but the election year deserves another area for investors to worry about as each candidate brings their own view of the world and the economic prose moving forward. katie: something i wonder is how much does it actually matter from the investment perspective -- investor perspective who is in the oval office? you think about trump and biden and both administrations stocks went up and to the right. if you are an investor, how should you be thinking about that potential uncertainty that you just mentioned? katerina: katie, it is absolutely important for each of the candidates to have the plan. as they articulate their plan, this is what investors are focused on, what is their path to the equity unit and economic growth. what it means for the portfolio is this specific year, ease the

volatility and uncertainty. it's not knowing who is going to win the election, which we don't have a personal bowl and we have no idea what it's going to be, that's what as the volatility. and that's what makes investors nervous. and as that nervousness takes place, we tend to make investment decisions which are not always the best. distancing, rebalancing, efficient tax management and positioning portfolios for both the positive outcome but also for potential pullbacks in the market. using international exposure as diversifiers can be quite effective. katie: to that point, you think about the global level and you have seen a lot of election volatility in the last couple of weeks. i think that is a good place to leave it. really appreciate your time on this monday. that is katerina of morgan stanley. we will take a look at the companies making the most social buzz today in our social climbers segment, up next. this is bloomberg.

♪

katie: it's time for social climbers, a look at the stocks making waves on social media this morning. first up, norway's sovereign wealth fund says it would vote against elon musk's $56 billion pay package. the general meeting is this week and it is the second time must's has been put before shareholders. norway's fund opposed the original package. gamestop extending losses for a second session after stocks stumbled nearly 40% after the highly anticipated return of keith to you too. they announced plans -- to youtube. they announced plans for a stock sale. will smith's bad boys ride or die was the weekend's top docs office performer with a $56

million opening. you can follow all of the latest company buzz on tre and go on your bloomberg terminal. we will speak to james ferrera. -- ferrara next. this is bloomberg. ♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

♪ katie: airlines are leaning on discounts to fill a surplus of seats and are chopping schedules to boost profitability. this may lead to another messy summer for travelers. joining us is abigail doolittle. >> it's interesting. after a couple of years of the revenge travel, it seems as though some of the trends, at least for domestic flying in the u.s. are cooling. flyers may not know it. relative to what you are talking about, discounting is occurring. american airlines ceo said they were discounting because of a supply demand imbalance here in

the u.s. they are leaning on discounting a lot and that is a reason why they sharply cut the view. because on peak flights, saturday, sunday, monday, when folks might be traveling for a weekend or extended weekend, those planes are packed and the discounts might be less felt. in the middle of the week, that's where much more of the discounting is going to be. the maintenance-related costs are going up. we will take a look at that in a moment. putting all of this aside, let's go to may 24. it's the busiest travel day ever. this was the memorial day weekend, may 24. that's the busiest travel day, going back as far as this chart goes to read but i think even beyond that. there's maintenance costs. this is extraordinary for southwest airlines in particular. that staff soaring today on the news that l.a. has taken in a 1.9 billion dollar estate. they think the stock will be a

$49 million stock. restructuring one piece of this could be the maintenance costs. in the first quarter, a 50 .4% raise -- 50.4% raise in maintenance costs. funny 4.2% for american. delta, 16% and even united, 10%. katie: let's keep this conversation going. we are joined by james ferrara, the intel a travel president and cofounder. for we get to revenge travel and the trends we are seeing about that, tell us what it does and what a host agency is. >> sure. thank you. there are lots of ways that consumers can buy their travel. we are used to maybe walking into a brick and mortar office or perhaps going into a website,

perhaps that is more familiar. but a host agency, a concept my company created early three years ago, we created the space. a host agency uses a network of independent travel advisors. so, real, human people. and that becomes really important as we move into the world of ai, right? but real, human people to know you, to understand you and to book your travel through inteletravel's technology platform, using our negotiating, our consolidating and negotiating, using education. it's an individual that you know and trust and, more important he, who knows you and is in your community or is your friend on social media. but they are backed by a multibillion dollar enterprise. katie: i appreciate that context. let's talk about what your agents are seeing and hearing right now. we heard from abigail that some

of the revenge travel that we have been feeling over the cup -- past couple of years, maybe that impulse is starting to fade. airfares are high and complaints are high. what are your agents seeing when it comes to air travel demand right now? james: demand overall has evolved. i would not say it's not there anymore but it is no longer revenge travel. it's the new normal. that people are traveling and travel is more important to them and we know, statistically, they are spending more. so, we have tremendous growth in the industry this year, we are coming through several years of outrageous growth. i mean boom years. we projected conservatively this year and we are actually quite far out ahead of projections. the cruise industry is growing at at least a 30% year-over-year rate. the land-based vacations, the growth story there is in europe.

as your reports said, domestically, we are seeing something different. there is still growth but it's not that crazy growth that we have had the last couple of years. we are seeing single-digit growth and sun and fun vacations and domestic vacations. but the air demand is still there. if you look at the tsa's numbers, we are breaking records all the time with the number of people traveling. but, the big story is still in europe, just like last year. we are seeing 20% growth year-over-year this year, to european destinations. katie: we will get to europe or let's talk about the u.s. a little longer. it's been the story of the economy. the consumers, they are not exactly thrilled. they are not happy. you look at consumer sentiment but they are still spending money. that seems to be the story of the air travel industry as well. how much pressure is there to find discounts right now?

james: there should always be pressure to find discounts because it's expensive to travel. and you need a professional travel advisor, in my opinion, to sort through the gigabytes of information out there. but, you can still find deals. the domestic travel, the bogeyman, i don't think is going to be in pricing because the airlines are sort of cooperating. and airlines have to do better, by the way. as you said from experience, we feel as travel retailers that we -- we strive to take care of our customers. and we really lose sleep over making sure our customers are well cared for and then we turn them over to the airlines and the experience is not what it should be. i agree with that, completely.

but, the bogeyman this year is going to be whether -- the weather. i don't think we will have the kind of armageddon weakens that we did in previous years, because the system is -- was really fragile. that has been strengthened now. everyone is in their seats while the jobs are filled. we are doing better with air traffic controllers. the equipment and so on is in the right place. what throws everything off is the one thing that we can't control, which is the weather. katie: i was going to say the weather is fun because you can't do anything about it. it will be fascinating to see how the airlines managed to manage through that, should we get any extreme weather events. let's talk about europe and the growth you are seeing there. of course, you have expanded in the u.k.. when it comes to that dynamic, what do you think explains this? is that just catch up or what's

happening fundamentally in europe right now? james: i hate to keep talking about the pandemic because it is well in the rearview mirror but there is a psychological emphatic to having something precious taken away from you. once you get it back, it's even more precious to you. we have seen that change the psyche of americans. travel is the priority now. europe of course is a bucket list, a lot a bucket list destinations for people. the other thing that's happening is we are seeing sports and concerts really move people around the world now. we all talk about the swift effect. taylor swift. but interestingly, taylor swift's concerts that were just in paris, she led off her tour in paris, they are now produced -- they have now produced more travelers from france then the coming olympics this summer.

so, even the olympics are important. formula one has become important. in the states, we now have people traveling for the wnba. people are traveling to attend these events. we have fifa, the world cup. that's driving a lot of business for us. katie: it's very human at the end of the day. people want to see exciting things and will travel to go see that. james, really enjoyed this conversation. appreciate your time. our thanks to james ferrara of inteletravel. let's get back for a check of these markets. we will do that with abigail doolittle. abigail: the s&p 500 down fractionally, earlier. it was down 3/10 of 1%. it will be interesting to see how the day fiddles out. the two year yield, one of the only yields that is lower, telling us these 2-year note's are rallying. they were selling off a little bit but it should be noted after

yesterday's -- last night's backup and yields, the two year yield is still above its 50 day moving average, suggesting that the sellers are going to try to take it higher, probably toward 5%. oil up 1.2%. the euro on all of these european elections, macron's big defeat, we have the euro, a new handle. a 10 seven handle from a 108 handle. that means the dollar is higher. risk reversals on the dollar, basically selling and buying options for a specific risk to reward, at the highest going back to 2023. basically in a year. some bullish dollar bets for investors. as for nvidia, that is one of the big stocks on the day. we will be taking a look at the movement. one of the reasons there is a lot of movement, last friday, it was $1200. it is closer to a $120 stock on that 10-1 split.

nvidia tends to out form -- outperform the s&p 500. after one month, it has tended to underperform with the exception of september of 2001. that was an unusual time period for many reasons. it's been all over the map, it is down slightly. it had been down more than 2%. might be interesting to see whether it looks back higher and go daddy, crowdstrike and kkr, the news that these stocks are being rebalanced into the s&p 500 on june 24. they are higher because it means index managers needs to -- need to buy the stocks. katie: a lot of technical forces at work in the markets today. coming up, new york governor kathy hochul has decided to halt congestion pricing. we will be joined by sam schwartz to discuss the potential fallout. this is bloomberg. ♪

>> mrs. bloomberg markets.

i am abigail doolittle. mcgough, an exclusive interview with steve wozniak. that is at 3:00 p.m.. this is bloomberg. ♪ katie: it's time for our daily wall street week conversation. we are looking at kathy hochul's halt of congestion pricing. joining us is sam schwartz and david westin. it's a hot topic. >> everyone is talking about this. sam, you have lived this longer than anybody else. give us the history. this isn't the first attempt at this. it seems like it has been going on for some time. how much money is involved? sam: a lot of money is involved. you are right.

it's been going on since the 1970's when john lindsay was mayor and i started working for the city. it continued in 1980 under ed koch. the first one was an act of congress that stopped it. the second was a lawsuit that mayor bloomberg attempted and there was government in action. now, we came within three weeks of it happening. we all thought it was happening and that the governor was solidly behind it. the amount of money is tremendous. it is $15 billion directly to the fta. that will spark at least another $5 billion in terms of federal funds. that is a $20 billion infusion to the transit system. it also would have resulted in more than $15 billion in bonds that were going to be issued. it's a real blow financially to the region. tens of thousands of jobs, local jobs, have been halted.

this would have included the sand hogs who build the subways, the 2nd avenue subway. the electricians who modernize the subway stations. the carpenters, the laborers. tens of thousands of jobs that would have been unleashed are on hold right now. katie: it's really good history, good context. to your point, we got very close this time. i'm curious for what you make of the reason governor hochul did this. she said it is essentially tax and inflation is very high and it's hard to put a tax on commuters and workers right now. i would also imagine it is hard to be putting through any sort of tax right now. sam: it's hard, politically. but as recently as a month ago, she was solidly behind it. i stood with her at a news conference in december. she couldn't be more solidly behind her and the statistics are different.

one statistic that is different, congestion in may of 2024 was the worst in history. more than 50 years ago, i was in charge of research at the old traffic department. the speeds in midtown manhattan in may of 2024 were 4.5 miles per hour. traffic volumes are higher than they were in 2019. so, i've always heard for 50 years, this is not the right time to do congestion pricing. london has had it for 21 years now. and they are doing great. milan, stockholm, singapore, so many other places. this is a rare moment in which you have almost a silver bullet. one that deals with congestion, which stifles business. and deals with transit at the same time. aboveground and underground conditions would have improved. david: just focus on this. if they had the $15 billion or

$20 billion including the federal funds, how would we have seen it? would it have improved mass transit or is it simply maintenance that has been long deferred? sam: that's a great question, because so many people are worried that the mpa is this black hole. but, one of the things that the advocates and the former governor and this governor supported was bonding the money. in other words, the money cannot be touched. for anything else. it can't go to wages. it has to go to capital construction. that means the 2nd avenue subway was eligible and at the top of the list, making subway stations more accessible. modernizing the signal system. all those are capital improvements. that's the only way the money could be spent. it could not be spent on salaries read it could not be spent on whatever -- salaries. it could not spent on whatever the blackhole hole people imagine it is. katie: we got very close this

time, this is something that has been tried to be put through in some form over the last 50 years. do you think it's going to take another 50 years to see some form of congestion pricing actually take effect? sam: did i warn my daughter and granddaughters they may have to pick up the mantle after 50 years of this? i certainly hope not. one of the saddest things is tuesday, last tuesday, the day before the governor's announcement, i spoke in front of the american public transit association and city after city wanted to hear how we got pricing past. how new york was about to do that so that san francisco, vancouver, even los angeles, chicago, boston were all looking at pricing as a strategy of dealing with traffic. this was not invented by a traffic engineer. this was conceived by an economist, william, who went on

to win the nobel prize in economics in 1996. he's no longer with us. he's probably turning over in his grave after he heard the governor's announcement. he pressed me, saying trade space -- treat space in a city like a commodity. what do you do when demand is too great? you charge a higher price for it. you set the price, a right price, which we don't quite know the right price. we would have learned a lot by setting the 15 dollars for the peak hours, 375 for the off-peak. we would have learned a lot if we treated space as a commodity. it's the one thing we can't add two. -- to. david: she's looking for other ways to come up with the $15 billion. is that viable? sam: no. i don't think there is any appetite, a year ago -- i'm a business person.

i wrote a company called pedestrian traffic management. businesses, we took it last year. we took a tax hike last year. not ready to take another tax hike this year. the governors got to come up with something else. this would have only affected less than 5% of her downstate constituents. it's not a big number, in terms of the number of people taking the subways and the railroads. and, this was a more targeted charge than a general tax would be. david: is it possible this was not canceling it but just putting it off until the election? sam: yeah. except that the following year is a mayoral election so that you can -- so you can be sure the mayor won't want it during his tenure. the year after that is a gubernatorial election. i've been around elected officials for more than 50 years. anytime you get close to an election, it's don't do anything

to rock the boat. katie: we are seeing that right now. sam, great to speak with you. we appreciate your time and insight. david, who else do we have coming up? david: tomorrow, we will stay on the subject of costs and talk with eric gordon. he's done some research on how people are experiencing inflation as we look toward this election. katie: thanks to david westin. this is bloomberg. ♪ clogged gutte big problems fast. until now. call 833-leaffilter today for your free gutter inspection. i've had terrible flooding problems on my porch. now i understand why. right now leaffilter is offering a free inspection, on your schedule. leaffilter is a permanent gutter solution,

so you never have to worry about costly damage from clogged gutters again. call us today and schedule your free inspection. to schedule your free inspection, call 833.leaf.filter today or visit leaffilter.com. are everywhere you turn. we're letting curiosity light the way. asking smart questions about opportunities like advances in healthcare. and how these innovations will create a healthier world tomorrow. better questions. better outcomes.

♪ katie: let's take a quick look at some stocks hittighs and lows this morning. crowdstrike, go daddy and kkr

are hitting 52 week highs after it was confirmed they would join the s&p 500 index in the latest quarterly weighting change. we are continuing to keep track of consumer names. denny's, dine brands and designer brands hit 52 week lows. designer brands down 6.52 percent. looking at the broader markets, at the s&p 500, we are unchanged on the day. we were larry -- lower earlier in the session. but i will call that flat on the s&p 500. nasdaq up about 1/10 of a percent. as we've been talking about all program, the week really starts on wednesday, when we get cpi figures and the fed's rate decision. it is still the macro that is driving this market. we are in a little bit of a lull when it comes to the

season. that's all from me. i am katie greifeld and this is bloomberg. ♪ thanks to avalara, we can calculate s tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh hi, i'm janice, and i lost 172 pounds on golo. ahhhhhh

when i was a teenager i had some severe trauma in my life and i turned to food for comfort. a friend told me that i was the only one holding me back from being as beautiful on the outside as i am the inside. once i saw golo was working, i felt this rush, i just had to keep going. a lot of people think no pain no gain, but with golo it is so easy. when i look in the mirror, i don't even recognize myself. golo really works. want to save on some of the biggest names in streaming on

the network made for streaming? x marks the spot. now you can add the new xfinity streamsaver™ that includes netflix, peacock, and apple tv+. that's xfinity streamsaver™ for just $15 a month. all your favorites. all in one place. only from xfinity. for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff.

>> from the heart of where innovation, money and power collide in silicon valley and beyond, this is bloomberg technology with caroline hyde and ed ludlow. caroline: i'm caroline hyde in new york. this is bloomberg technology. we go live to california as apples developers conference kicks off. we sit down with the dreamworks founder jeffrey katzenberg as his venture