>> we are 30 minutes and less trading day this monday. here are the top stories we are following. goldman used its year-end s&p 500 forecast for a third time to 5600. evercore, penciling in 6004 a benchmark. an about-face from the previous parish stance. easing up on europe, the political turmoil in france pushed a need to downgrade european stocks to neutral from overweight. instead they upgraded u.s. stocks to overweight. navigating the airlines with brian kelly, founder of the points sky. we will talk through the report for the best airlines for 2024

with delta nabbing the top spot for the six year in a row. i'm katie greifeld, in new york. welcome to "bloomberg markets." markets are quiet this morning with interesting economic data coming in later in the week, but on this monday you can see the s&p 500 is down by a hair, talking 1/10 of 1% lower for a benchmark close to record highs. same thing, but looking at the nasdaq 100 is slightly higher. you are getting a little bit more action when it comes to the chip names. the philadelphia semiconductor is currently higher by 2/10 of 1% but even with muted action you have wall street goals getting more bullish on the s&p 500. evercore, goldman, some of the

latest to boost calls. joining me now is abigail doolittle. let's start with goldman. a third straight forecast boost. abigail: it's pretty interesting, friday they boosted their year-end target. it had been at 5200. this is their third rise in recent history from goldman sachs, as you said. clearly expressing a bullish view, keeping up with the index appreciation. 5600 is the current level, not a huge amount of potential appreciation, but they are saying the reason for the call was earnings was less than bad, less bad than expected, and that the price to earnings valuation metrics supports the idea that we could see stocks go higher from here. what is interesting is that if you take a look at it from an earnings basis, 22 times from the s&p 500, that's not necessarily cheap.

that's actually above the average. this call is assuming that everything is going to go well. abigail: everything -- katie: everything is going well, that is what's baked into the call. let's listen to evercore. i thought it was interesting as well. 6000 would certainly be big, but this is a real about-face from what we saw previously. abigail: absolutely. joy emmanuelle has made a big change and to your point, roughly 10% on the upside potential. previously it was 4750, a much lower. lots of factors going into this. the economy, big tech, ai, the valuation. on the other hand he makes the point that valuation, while he did raise his s&p 500 profit targets, he made the point that it was below bubble territory. i don't know if that is the most reassuring. if we evaluate the fundamentals it is clearly the economy and

the fed seems to be steering towards a soft landing. on the other hand if you take a look at the commodities space, there is weakness for oil and grains. some analysts say that this continues to point to a demand situation and the idea that there could be a recession coming up at some point. i would argue that valuation is healthy if not rich. technicals, katie, on a monthly basis looking at the s&p 500, more than 100 percent above the 200 day 200 month average, a fancy way of saying that the bulls are over their skis. going back to the gmc, only 60% above that. the tech double, only 200% above. we could go significant higher, but it might be on borrowed time. the last thing i would add is a lot of the conversations in the other beats that i cover, real estate, folks are saying that the political uncertainty in europe and in the u.s. and the election coming up, there could

be a lot of surprises there and they are seeing some activity on the sidelines because of those concerns. we are not hearing about the risk. these calls are assuming everything goes just right. katie: abigail doolittle, really appreciate that lineup. -- round up. let's talk about the markets with marian bartel, chief investment strategist with the onset. great to see you in person. >> great to see you in person as well. katie: let's talk about the bullishness on the street. the s&p 500 is just above 5400 and we are talking about 5600 all the way to 6000. what are you thinking when you think about the broad index level for a reasonable level for the end of the year? marianne: we have been bullish. we came into the year originally looking for 54 to 5600 but quickly in the early part of this year i raised my ranged for the s&p to 5600 -- 5800.

we saw the technicals improving earnings. i'm so comfortable with that. if i do long-term technical projections, the market goes into a range of 6007 thousand. but how i start feeling now, because i was so out of consensus, i feel that now i am in consensus land and i don't like being part of consensus. but that doesn't mean i'm bearish on the markets, you know? earnings revisions have been going up and that is the most positive correlated indicator we have. markets really truly move on earnings, but it does make me a little nervous that we are starting to get consensus and i'm also nervous because the vix index that measures volatility has been around 12, that's pretty low. we called it the bouncing ball. we believe in the bucking, but i wouldn't be surprised if you get

a little bit of one. the sign that you are in a strong market means it doesn't go down as much as you think. katie: you are reluctantly in the consensus. there has been a shock around a potential summer pullback in the offing. you think about how strong the outlook is right now. what are you thinking for the next couple of months. -- months? mary ann: we have been in the summer rally. we say you want to buy in may and sell before labor day. we have a chance for a rally, but we do have a chance for bucking in the fall. that's where we see that. the risks, i'm actually really surprised. moody's put on watch six regional banks for potential downgrades because of commercial real estate. it got a blip on the radar screen and no one is talking about it. if something were to emerge like that, you might be able to get a pullback in the markets.

but we are not seeing anything that could take the markets sustainably down. abigail: -- katie: with known unknowns, commercial real estate is where a shoe could drop. but ai, so much news and optimism baked in corner of the market of ours, that has really been propelling the benchmarks that we talk about all the time. is there a potential for something to go wrong there? when you think about how strong the good news story is right now? mary ann: i don't see something wrong and i equate that to 1995, right question mark the introduction of computers, the introduction of the internet, and when you look at the dow what really happened is you went vertical. between 1995 and the peak of 2000, we always talk about 99 2000 but the rally began and 95. you had major bucking in 97 and 98 because of that crisis that took markets down almost 20%. the year closed up over 20% with

long-term capital in 1998 and markets went down internally 21% and on the plus side the fed ease up. at any point in time we could have an event that takes markets down, but if you are truly in a strong bull market, you recover quickly and i think we are in that. i think we are in that 95 and we will go vertical out to 2030. i've actually equated this to 1925, to the peak in 29 with the nasdaq. the pattern to me looks very similar. i am very bullish ai, bullish technology. we titled our report this morning june is busting out all over. that's an old song for you young people, but apple finally broke out after three years of consolidation. broadcom, on its earnings announcement of their stock, split 10-1, broke out.

we are getting breakouts not just in technology and a company like regeneron and biotech broke out. microsoft is broken out, oracle is broken out, you lie lily has broken out. you don't get breakouts in a bear market. katie: it's interesting, you thing about markets is a forward-looking animal and maybe we are three out from the rate cut but why aren't the smaller sections of the market benefiting from that? mary ann: that is there in there is a large component that doesn't have earnings and that's a problem, but when you look at the breakup it has regional banks and energy and i think the regional banks, because of commercial real estate and the concerns you are going to continue to have like consolidation due to regulation, and then energy, you know, energy is probably the best valued sector in the market.

they have great talent sheets. many of them gray about -- gave out great dividends for cash flow, but the earnings underperformed relative to the market. so, they get the wind and then the sale kind of goes down. i don't think the makeup of small-cap has leadership in it. secular bull and bear markets can last 15 to 20 years. i think that small-cap remains in a secular bear and won't go into a market till we peak in the broader markets. katie: sit tight for a couple of minutes, let's take a look at what's going on under the markets. we are doing that with bailey lipschultz. quite overall with a little of action underneath? bailey: we want to start off with autodesk coming out after star board announced a stake of $500 million, pushing for the company to delay the general meeting saying that they botched the handling of an accounting probe that did not actually have

a massive impact on the underlying business, but did cause some concern from the investment community. the stock from that february 9 high, down 50% before this potential lawsuit urging the company to delay its annual general meeting so that they can kind of position some members to be potentially added to the board, given, as they view it, the botched handling of that accounting. katie: courtroom drama boosting the stock. you were just talking about this with marianne, broadcom really breaking out. bailey: really breaking out and you mentioned ahead of that stock split. stock split for both companies that have high sticker prices and you can see now a sharp move higher. 1813 on the handle. the stock has more than doubled in the last 12 months and has been absolutely rallying head of this excitement around the ai boom and potential around what growth can look like for the

company, really sitting comfortably in that group of winners alongside nvidia. katie: quickly, gamestop just for fun. what's going on there? bailey: hopefully there will be an annual general meeting at 12:30 but i say hopefully because they had to postpone that meeting because of the issue around the site that hosted the meeting. obviously all eyes on their ability to raise billions on the back of the latest roaring kitty rally. they have $4 billion in change and hopefully we will be able to hear from ryan cowan and it will be interesting to see if you lays out anything in terms of a strategic update, something we haven't gotten in the three years since he took activist hold and became the chief executive, really became the brainchild behind gamestop. katie: it would definitely be good to get some fundamental news around that name. tbd, of course. bailey lipschultz, thank you so much.

protests in france over -- over the weekend to oppose the marine le pen far right party. more, next. this is bloomberg. ♪

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alan: well, they certainly do for the moment. as you say, markets calmed down a lot today compared to last weekend i think people are taking a bit of a breath to sort of say to themselves -- wait a minute, who is really going to take control? france is a really complicated two-step system, it's still hard to tell who is going to end up assuming control of the legislative body when this is all said and done. katie: what is the path forward for emmanuel macron? how does he forge ahead from here? alan: well, it's difficult , no question about it. it is why a lot of people, including other heads of state and the g7 over the weekend have asked why on earth he dissolved parliament. the path forward is that he has to try to forge a sort of centrist group with using usual year of the far right that has worked in france as a bulwark

against that for decades. whether or not the fear of the far right still exists in france, that's likely to be true because when you look at the most recent election results that just happened, one third of the french people voted for the far right, so it seems that there is no hesitancy to do that anymore if you look at the polls right now, another quarter of the french public is ready to vote for the far left. that centrist group that micron is trying to rally to create that governing party, it seems like it is going to be very hard for him to attach it to that. katie: allen, appreciate that reporting. i'm sure it's very busy over there. thanks to alan katz. mary ann is still with us and it's interesting, you saw citibank downgrading european stock can you saw advice from mazuma saying that investors should stay out of it at the moment, even with the

stabilization you are seeing in the french markets right now. how do you feel about european markets when you think about the potential political risk spillover effect? mary ann: markets never like uncertainty, explaining why the markets in france have corrected. but i don't think you should admit -- invest based on what you don't know yet. we don't know what's going to happen and i would rather see what is going to happen and what the policies are before and make a decision about selling my european equities because when you look at valuation around the world, europe has had great value it is not very expensive, telling me that you should have limited downside. if it is going to negatively impact the earnings on future programs they could put in place , i might then become a bit more cautious, but here i would be -- i would still only equities, but when i look around at the g7, the one market we have liked all year is actually japan. we think japan is in a new

secular bull market. how we measure that is you break it up above the 1980 high and are in a whole new realm. we think they are better -- benefiting from chinese weakness in that they could become major manufacturers and that the yen will stay very weak. the risk is it continues to depreciate. for u.s. investors, if you were to invest in japan, we would be hatching the currency and there is an etf or that. katie: i was going to ask -- you think about that volatility in the yen, is it give you pause? sounds like you are finding ways to work around it. mary ann: looking at the technicals, i can get it to 250, 100 points higher and in reverse. you don't want to see that happen over a short amount of time, but gradually appreciates, -- but if it gradually depreciates, the only group it hurts is the people in the

country who want to buy foreign goods and it gets more expensive and it becomes an attractive market to invest in if you hedge the currency. it may also be a place where you want to go on vacation. [laughter] katie: of course, i'm sure the currency valuations keeping those currency traders busy. it's fascinating to see what's going on in europe in france right now -- we have our own version coming up in a couple of months, in november. anything to extrapolate out based on what we have seen in the european markets and going to the u.s. markets when we count down into our own presidential election? mary ann: my answer is no. normally you have something. when we have a candidate running against the current president, you often don't know the backdrop, but in this case trump is a known entity. we have been in this situation before, so there are some known

gnomes. we don't know who is going to get elected, but what we have been telling clients is that the election doesn't matter for this year, meaning that earnings are on track. policies that have stimulated the economy through the biden legislation, that's over $3 trillion, that has the potential to come into our economy. the fed has already started to ease. no one is talking about this. you talk about for a blip and everybody stops, but on the balance sheet they have slowed the amount of sales, it warm up using. and then we have the potential, i have been saying, i think the fed if the data is to, which if i think it will, will be able to cut interest rates 25 basis points in september and that is all bullish for risk assets. i think that this year we are fine, but the question is who gets elected and what does it mean for next year? katie: mary ann, great to see you again, great to speak with you. mary ann: same here. katie: thanks again.

coming up, the companies making the most social was today in our social climbers segment. this is bloomberg. ♪

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katie: time now for social climbers, looking at the stocks making waves this morning. the u.s. surgeon general is calling for a formal warning label added to social media site similar to those placed on cigarette. such a warning would "regularly remind parents that social media has not been proven safe for mental health." any such move would need rational approval. he does healing with -- adidas is dealing with allegations of bribery after a whistleblower accused staff of receiving

kickbacks from external providers. it mentioned a senior manager receiving means in cash from suppliers as well as physical items like real estate. finally, pull out the popcorn, "inside out 2" wheels in viewers with the biggest blocks office opening weekend of the year. bringing into hundred $95 million globally, the biggest opening weekend ever for an animated film. welcome news, of course, for cinema chains like amc, who have been waiting for the next big hit since last year's barbe nheimer success. markets at the moment are quiet. the s&p 500, you can go again -- go ahead and call that unchanged, 10% lower. the nasdaq 100 is a similar story. what is interesting is that volume has actually elevated relative to the 20 day average but hasn't translated into big

price moves. the best airline in the u.s., according to the points guy. we speak to brian kelly, next. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

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abigail: -- katie: well, good news for travelers at the start of the summer. airlines are using discounts to fill a surplus of seats. abigail doolittle has a look at the travel industry. abigail: certainly is good news for anyone looking to get on a plane. particularly the flights midweek , that is where the discounting is. if you take a look at what's happening on long holiday weekend airplanes, they are pretty packed. planes in the u.s. are basically just below 3 million per day

travel throughput. as for the stocks related to the travel industry, not surprising that given the discounting and the number of people on planes we are seeing real strength in the passenger airline index overall, a very healthy 9%. royal caribbean people are cruising up. viking, this year's ipo, the thinking man's cruise line for river tours, up nearly 30%. hotels, not so shabby, up 6.2%. in the u.s. if we take a look at what is happening from the u.s. to western europe we are going to see the scheduled flights between these areas at 140,000, the anticipated number for this summer, it is -- essentially -- not essentially -- it is the high since 2000 2010 -- since 2010. flights picking up the summer. katie: let's keep the conversation going with brian

kelly, the founder of the points guide who joins me in studio. mary ann: thanks for having me. katie: your report on the best u.s. airlines, discounts, are you seeing that among the airlines right now? ryan last summer if you wanted to go to europe, it was $5,000, $8,000 business last. this summer there is a phenomenon going on, air france has 50,000 mile business class seats from a lot of the gateways throughout the summer, even throughout the olympics. because of the increase in supply, we are seeing affairs. i'm going to a visa in august -- ibiza in august, 4000 dollars first class, half of what it was in august. before you purchase a ticket, use google flights. switching a day draw things dramatically and always double check makes there are frequent flyer miles available. katie: let's talk about why that

is happening. is that just the airlines reaching the end of their icing powers, consumers getting fed up with prices and choosing not to travel? are they adding more capacity? what's behind that? brian: since pandemic, business travel has not picked up as much as leisure travel. leisure travelers are actually spending. a decade ago delta was giving away 80% to elite status and selling 20%. that's now inverted. throughout pandemic when pricing was lower, premium consumers got used to paying little by little, like they were slowly oiling the water and now people are used to the premium experience and there are more leisure passengers willing to pay then when they were just trying to fleece that business traveler trying to pay 12. would you think that overall it's good for consumers. katie: interesting to hear those adaptations that have to come with pricing strategies. let's talk about your recent report, your best u.s. airlines

for 2024, delta has another clean sweep for the sixth year in a row. what was interesting to me was that the lowest performing area was affordability, which i would think would be a big factor. brian: everyone has their favorite airline, especially if you are in new york, but we wanted to look at the data set. four categories, the biggest remained availability. at the end of the day if you need a flight, you need to get where you're going in delta is the most on-time airline in america. we looked at airlines losing wheelchairs, a terrible problem getting worse, we dinged the airlines that don't have great policies. fine enough, allegiant cayman number one overall on liability. delta didn't win in any of the categories but were superstrong across the board. we looked at loyalty, customer friendly policies like family seating. we wanted to take a holistic approach with the loyalty factor

factored in. katie: another thing that stood out to me was you take a look at the low-cost carriers like spirit, who lost standing in this one. brian: they did. we also looked at route network, right? the guy here is global, they want lounges. spirit will never have's -- in our survey, spirit will never be number one. they don't have great loyalty programs. i don't want to say that they are not airlines, they serve underserved routes and populations, but when you look at the points guide, the global airlines serving passengers, we wanted to come up with our best recommendations. when people have the ability to choose at the same price, we want to give than the data to say -- well, you might want to choose one more reliable. katie: well, never say never, spirit could always come from

behind. let's talk about the airlines that made big gains. stood out to me, alaska for example, the biggest gain. it feels like most of the recent coverage on alaska has been dedicated to its january issue with that boeing plane but it seems like that hasn't dented the brand? brian: those numbers were based on 2023 data. so those would be reflected. united, the biggest jump or drop this year was united from two to three, they had the operational meltdown and the groundings. plus biggest issue, united has been hit the most on airline deliveries. every airline in the world, like boeing and airbus, they are way behind on deliveries, impacting rapid expansion and reliability. katie: airlines, still coping with those growing pains. there you have it. let's talk about flying versus

driving, people paying for the more freedom of experience that got used to. when it comes to people getting in their car, that seems very popular. brian: booming, yeah, gas prices have leveled out. it's much cheaper. it depends, actually. but americans are hitting the roads, hitting the airports. i do want to say driving, the traffic is crazy these days. even though the tsa can handle that, the roads can't. i nearly missed a flight to jfk. anyone at home watching the travel procrastinators trying to get there one hour prior, always check in advance. even if you show up late, if you have checked in online, they might let use that through, but new york, l.a. traffic, i would add an extra hours airport. katie: extra hour? brian: yeah are just take your helicopter. katie: their ego. there are alternative methods. when you think about the psychology of the industry right now, abigail mentioned revenge

travel that seemed to be fueling the numbers we have seen for the past couple of years, but where are we in the narrative? is it safe to say we are firmly out of the pandemic mindset and what came out of it? or would you still phrase what we are seeing is revenge travel? brian: i think we're close revenge, post-covid. the last couple of summers i was on shows like this talking about the meltdowns, the staffing shortages, the baggage delays at heathrow. images of 10,000 bags. airlines have gotten their operations under order. some things are somewhat smooth sailing. i do think that we are reaching a new normal wear airfare, there is more capacity, the world is opening up. asia is still not where was. we are kind of growing their. business travel is a bit lower but the leisure travelers back in when you look at the demographics of the younger generations who value experiences over things when it comes to travel, the overall

outlook for the travel industry is very bright. katie: before you go, let's take a look at more of business travel not being quite back in is that just the new reality, will we ever see those 2019 numbers when it comes to business travel? brian: you know, never say never. clearly, companies are getting smarter about spend. especially with the uneasy economic outlook and inflation, companies are still getting hit for costs in there is still cost-cutting a lot of companies where they are asking -- do we need to have that cost-cutting in vegas? yes, it's nice to have and should continue to grow, but tv has ever surpasses. katie: brian, have a great week. really appreciate your time. that's brian kelley, founder of the points guide. checking on the markets one hour into the trading day, abigail doolittle. abigail: flipping from a decline

on friday, going back down, you can see a firmer decline for the russell 2000's all caps stocks that continue to be under pressure, underperforming. in terms of what's happening for the s&p 500, real battle between the tech names, apple is up 1.7% and is really trying to support last week's surprising to me break out. we will be taking a look at those charts later this weekend in the weeks ahead in terms of what is actually going on there. nvidia, a rare down day, down three orders of 1%. this is the top point boost and the worst from a points standpoint in terms of the s&p 500. it helps to explain why we are having this'll tug-of-war. the dollar has been in a bit of a stealth rally. going into the terminal in taking a look at the dollar, back in april we see the april high out of last year, a pretty

solid rally. it's interesting, stocks are higher with it and this is an ideal situation with a strong dollar signaling a strong economy. we are more use to, i would argue, the situation where the dollar is strong pressuring risk assets, but it's not happening right now. you can see the dollar going back up to the highs of the year and one explanation could be that if we see it continue to go higher every year, will that pressure risk assets? stay tuned. as for what's behind the dollar strength, circular here, the two-year yield is closer to 475 and right across the curve we are seeing gains that support the dollar going higher. katie: abigail doolittle, thank you so much. coming up, we take a look at the demand for ai and what it means for data centers. in the apply digital chairman ceo joins us next in today's wall street week. this is bloomberg. ♪

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abigail: you are looking at a

live shot of the principal room. coming up, the marathon asset ceo, bruce richards, that's on "the close." this is bloomberg. katie: time now for the daily wall street week conversation. the rise of ai is posing challenges to data centers. apply digital operates data centers and is looking at how to adapt their infrastructure. the company cofounder, chairman, and ceo joins us alongside david westin. data centers, it's one of those high talking points. david: it really is. normally when we talk about data centers it's the commercial real estate side of it, but you actually developed, installed, and operated these things. give us a sense of what the big

deal is with data centers now that didn't exist before the rush ai, right? it's been a run for some time? wes: the difference to consider now is what goes in compared to the past. before we were building them population centers with communication to get that youtube, the flex, the tiktok, all of our things that have been driven mostly by video applications. moving from applications that need ultra low communications outside the data center to applications that need massive amounts of compute. doing large math on algorithms, this is what ai does in the data center. compute equals power. inside the data centers, you need a lot of compute close together. so, you need really high power density.

historically, they were, let's call it seven kilowatts for a rack of computing. at nvidia, each server by itself took 10. and then you had to stack them altogether. you had a massive amount of power consumption that needed to be close together with latency inside versus outside having to be ultralow. you had to build a completely different style of data center with a large amount of power in the same location and that's what we are doing, finding large amounts of power typically in different locations, no longer new york, virginia, dallas, los angeles. we are building in different locations where we use a lot of renewable energy that has hundreds of megawatts if not a gigawatt of power. so that you can run these workloads. they are just very different style workloads than what we are used to. katie: when it comes to the adaption process converting those existing data centers into being able to handle the ai workload that people are trying

to do, i mean how long of a process is that? how long is that timeline? wes: i'm a big believer in that you are better doing greenfield, building a new kind of data center versus trying to retrofit. cooling is different, the power density is significantly different. there's been a big issue -- well, the number one issue right now five hours. we have a very unique way of founding power, as we typically use a lot of renewable energy that is more the middle of the country. so, number one is power. number two, supply chain. these are electrical components. transformers, chillers, switch gears. number one is power, number two is supply chain. katie: so you are building -- david: so, you are building your

own power, wind farms, solar, nuclear for that matter, or are you tapping into the grid question mark sounds like there's an awful lot of lag time built-in. wes: so, right now we are not building the power. that's something for the future for us. the -- there is a unique set up in north america can take advantage of called stranded power. power generated not used. i know a lot of people think that you can generate an electron anywhere in the u.s. and use it anywhere else in the u.s., but that's not the case, you need the transmission infrastructure to be able to do that. north dakota, for example, the is a massive amount of power that feeds into a substation and often times they have to curtail the wind farms because there isn't enough load to use the power generated. so, we go to the location, we have several of these locations where we use power currently not being used.

to the other part of your question, for new power, you can build power channel on renewables, 24 to 30 -- 36 month timeframe, but the bigger issue is transmission. to transmit that power into somewhere in the middle of the country to end-users, that is more a 10 to 13 your process and we are sort of shortcutting that by taking these workloads directly to the point of generation. katie: talking about competitive landscape here with ai, it's really made its way into every part of the market. seems like every asset class is trying to figure out the ai narrative their industry. when you think about your own industry and data centers right now, how fierce is the competition? wes: it's an interesting time, for sure. one year ago on the data center side, everyone was trying to figure out what was happening in the market.

why all the demand with the high density? having figured it out, it's like trying to make the solution. again, getting the amount of power needed, operating this style of data center is extremely difficult. so, on the data center side think about the picks and shovels, digital infrastructure that was supposed to run everything that everyone is used to running on the phone or the tv at home, now having rebuilt. this isn't a replacement, by the way, it's an add on for compute workloads. we are developing products in the infrastructure that runs all the ai. everyone wants to do it. we talk about everyone knowing chatgpt but if it was everything in video, in visual, everything in generative ai runs on the massive superstructure that needs to be built. when they talk about ai factories, what we have done is we have designed our data center

in partnership with them, we work with their team to build the style of data center we are, this is the issue of the data center industry. it's different from what we had in the past but we are running all of the ai workloads and they are split between training and ai. i would say that industry is scrambling to build the amount of infrastructure needed to housing compute these applications. katie: what's going to perked -- david: what is going to prevent obsolescence? wes: that's a great question. our facility, we take that future growth. we think the power density goes higher, cooling. but i think that the blast -- the last 23 years were really driven by high-speed communications.

as we go through the next 20, they will be driven by compute. we are looking to future proof that. by the way, the older style data centers are not obsolete. we still need all of that capacity for what we continue to use and it is an absolute pleat add-on to what has been done in the past. try not to be obsolete is making sure that you are future proofing your facilities as much as possible as we try to run at a high efficiency, lowering our carbon footprint. we build with mostly renewable resources, but those are things you try to do. they say that not being obsolete in the world is one of the keys. katie: future proofing, that's one place to leave it. really enjoyed that conversation. wes is the compliance cofounder, chairman, and ceo. who else is coming up? david: will be talking about carried

interest with a professor out of oxford and he'll tell you how much money is being made out of that special tax credit. katie: i'm sure that there are big numbers involved, looking forward to that conversation. thank you, of course, to david westin. this is bloomberg. ♪

katie: all right, let's take a look at these equity markets. we are about 90 minutes into the market day and boy, it is boring. the s&p 500, nothing going on. unchanged right now. maybe we will get more action when we get that retail sales data. an important insight into the consumer, there's more to talk about if you take a look at the nasdaq 100. that is your leader today down 1/10 of 1%, big tech working out on a relative basis. interesting, the semiconductor index is not doing too much,

down .2%. that is of course the hot area in the market, but not so much today. coming up, we have "bloomberg technology" with caroline hyde and ed ludlow, but that does it for "bloomberg markets." this is bloomberg. ♪ 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.

her uncle's unhappy. you' i'm sensing anions 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.

>> from the heart of where innovation and power collide, this is "bloomberg technology" with caroline hyde and ed ludlow caroline: i am caroline hyde in new york. ed ludlow is off. this is "bloomberg technology." bull market coverage ahead as the magnificent seven see a momentum rally like never before. plus we push ahead to game stop's c.e.o. is up to deliver

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