katie: 30 minutes into the u.s. trading day. top stories, stocks poised for new highs driven by tech gains and optimism about rate cuts after the swiss national bank trimmed it rates the second time for the year. tate and lyle buying a company for nearly 2 billion dollars. we will set the table with the ceo, nick hampton. a global tv alliance. lp and alliance are installing and stations in the u.s.. we will discuss with the

chargepoint ceo. welcome to bloomberg markets. there is green on the screen behind me. the s&p 500 at another all-time high, currently up .3%, outperforming big tech with the nasdaq 100 currently up by .2%. i can't say the same for small caps, also down. the two year treasury yield also higher, three basis points, still below 5%. to the earnings picture, a mixed bag. a company, olive garden, sales fell for the second quarter.

our restaurant analyst for bloomberg intelligence is it joining us. it seems like this was fear overall. mike: it restaurant sales have been weak. it was a relief they were still able to beat on the bottom line even delayed the top line is being pressured by low income consumer spending. katie: is there anything we can extrapolate out to the consumer, and retail we talk about the trade down we are seeing it. are we seeing a similar dynamic play out in the restaurant industry? michael: restaurant sales have been weakening for a year now. typically as usual they are a canary in the coal mine. the sales tend to fall off before other sectors in a slowdown. this year has been especially tough.

consumers are dealing with for years of inflation and price hikes at restaurants. they are dealing with higher prices by racking up credit card debt and credit card delinquencies and auto loans are increasing. they are under pressure and don't see the same value at a restaurant visit and they're probably trading down at the grocery store and making more meals at home. katie: i appreciate your view. breaking news from the supreme court, they uphold the 2017 u.s. tax on foreign business income. we expect several supreme court decisions and there is one of the first ones we are getting today that the supreme court is upholding the 2017 u.s. tax on foreign business income. more details as we get them. turning to the broader markets,

we have katie: -- we have dana d'auria from envestnet. we talk about how the breath is in there. is that something to be concerned about or the state of the market right now? dana: it is something to be concerned about. my discipline in terms of investments and approach to investments has really always been around fundamentals, value, valuations matter. over time, things like quality matter. it is not to say that the top of the market, nvidia, ai, big tech is not coming for the earnings to support because they are.

the earnings are there to support the growth ec but to see the lack of breadth and the -- growth but to see the lack of breadth is caring for the investor. aaron actively managed portfolio that has low tracking on a relative basis. for them it looks like the market is doing great but in fact a lot of the economy is -- economy is not participating. katie: talk about the divergence in the large and equal weight and small caps that can't get off the ground. what is the catalyst? how do they come back together. what will it take? dana: the first thing you think of his interest rates. while cap summer interest-rate sensitive and need to go back to capital markets for credit and the dependency on what the rate

is and what the corporate finance team is looking at in terms of rolling over debts and how the cost will be. one of the clear drivers is do we get rate cuts. it is interesting because you see the market tepidly assuming maybe we get more and maybe two this year and one later but not the catalyst for small caps you hope it would be. to the extent we get solid evidence that the fed is willing and ready to start making cuts, i think that is what will help small caps. katie: it is interesting because we are three months away from the first rate cut and not seeing the catalyst come into place for small caps. you think about the potential timeline for when we might actually see the rally broaden out. apparently three months ahead of the first rate cut isn't the

time to do it. so when is? dana: what you have to think about with this is is the market in general, looking at small caps as sort of lagging and the equal weight which overweight's relative to market cap rate will have a lot more small-cap bias, will present and we are looking at that is saying they are lagging and it is probably more the inverse. we are seeing outperformance a month -- amongst growth and when the rest of the economy and you look at how will that growth story that is telling, how did that trickle down to the other companies and i don't think this is a clearer story lines. there will be winners and losers but without the storyline, the question becomes, what is the catalyst and what type of market are we actually going into thinking about things from a

broad perspective. retail sales are down. consumers are worried. fight of -- the bite of inflation. prices are significantly higher than they were a few years ago and that is going away. unemployment, there is no way that unemployment has stayed very muted and a strong picture for the fed but without the thought that the fed and arguments to be made that the fed is a little behind on rate cuts, without the thought that the fed is going to one start cutting rates, it becomes a question of why would i expect an increase in other stocks when i don't see the story there and don't have the pieces for that. katie: let's talk about ai. we opened up with a conversation about tech and what we are seeing when it comes to the big chip makers very how far can you

follow the ai storyline? i hear more and more about utilities, data centers and copper. how far does it go? dana: it is interesting because a boom this year and we will have the storyline and narrative around everything is ai because we need copper for ai and energy for ai. so therefore the energy companies should get a boost. any aspect of the supply chain you can somehow attached to the ai story could potentially get the boost. i would say this is the time for really a fundamental look at these different thesis and say what companies do stand to benefit and what companies are being lifted up saying that all roads that lead to ai can be

higher. as an investor you have to be careful. there are ways to play it. think internationally and the semiconductors. the story is there but they aren't pressing in something like nvidia. there is definitely the opportunity and ways to play this but you also have to be where -- be aware that you not getting caught up in a storyline that maybe it is related or maybe copper is up because of the supply chains. katie: the opportunities are there but you have to be selective. we will have to get the conversation going at some point later. dana d'auria, thank you very much. let's looking at how that -- let's look at how things are moving. talk about nvidia. emily: this is the stock all investors are going to the ai frenzy. it is up 3%.

i am not sure if there is any fundamental news on the day but the big news this week is that it is now the world's most valuable pump and he come over $3 trillion, more than $2 trillion has been added this year. that is bigger than the total market cap of amazon, the total forget cap of meta. back to its ipo, it has now posted -- i am not good with these large numbers. it is a six digit gain including reinvested dividends. it is just a remarkable ride. manus: a -- katie: an incredible race going on. accenture, the same story.

emily: when you look at earnings, it wasn't all good on the top line, adjusted vps and revenue a slight miss but investors didn't mind. when you dig in, they posted a beat on their new bookings for the third quarter, generative ai new bookings totaled 900 million dollars versus $600 million in the second quarter. bookings overall were up 23% since last year and beat estimates. the stock is up 10%. you look at what analysts are saying, while the income statement wasn't terrific, the robust looking numbers should help the stock trade well. it is an ai morning. katie: tell me about dell. emily: this is a partnership with an elon musk of start up.

musk said that dell and also super micro computer is also going crazy, will be providing super racks for the supercomputer his ai start up. and michael dell said they are going to power the supercomputer. there were pictures of all of the processors. this is the broader story of the hardware companies, server companies increasing their output as more, i guess customers want to build and they need a higher capacity to handle the computer processing that needs to power ai. manus: i can't -- katie: i can't wait to get more on that. thank you so much. coming up, a sweet deal and the food biz.

tate and lyle will lie a u.s. competitor, cv kelco. nick caved in, will join us. -- nick hampton, will join us. dangerous ladders. gutter muck. yuck. no wonder you hate cleaning your gutters.

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katie: u.k.-based sweetener maker tate and lyle will lie especially ingredient maker cp k elco. we have nick hampton, the ceo. you have them remove sugar in place with alternatives that have the look and taste and

feel. how does this deal do? nick: this is the perfect fit for us and for cp kelco because they increase texture and small field in food and beverage companies. as you think about the move toward healthier and taste your food, it is critical not just to replace sugar in terms of sweetness but all of the picture that makes the consumer experience as good as it can be. about replacing the fat in her and sugar in yoga and you need that creamy taste, they can help us with that. when we think about the future of our business, the best and what we do in terms of helping customers reformulate for health and clean label and nutrition, it is really important. bringing the two companies together adds to the capability to do that and makes us more customer relevant and will

enable us to grow together. katie: you barclays out saying this deal looks like a good fit when it comes to scope and size, result valuation. you look at cp kelco and there has been market decline and how do you ensure investors on that side? nick: it is a fantastic business. they suffered in the near term from some of the market softness we have seen, both driven by consumer softness and the inflationary pressures. all of those things have led to some temporary volume and margin decline. we've got a very clear pathway to drive growth going forward. we are close in partnership with them for a joint plan on how we are going to do that. that starts when the transaction closes. they are seeing some improvement in performance this year,

stabilization of volumes and revenue and margins. that recover has already started. -- that recovery has already started. katie: let's talk about the structure of the deal because cp kelco's partner is going to have a stake. can they buy more shares are is there restrictions? nick: to things that are really important. their continued participation in the business is a clear belief in the potential of the partnership together to drive growth, a real validation of why the two companies together can grow and succeed. that is reflected and continued participation and they want to participate in the long-term success of both businesses.

their customary lockup periods and sell down conditions as you would expect like this and a lot for two years but they are committed to the longer term and we are very excited about partnering with them and their faith in us in taking control of the significant part of their business. katie: you have also said this deal is going to generate cost energy of $50 million by the end of the second financial year after it actually completes which i believe is expected in the fourth quarter. can you tell us more about where the opportunities for cost cutting actually are, where the synergies are going to come from? nick: we were worked very closely with a management team at cp kelco to lay out the path. the benefits of a scale when it comes to things like procurement and the benefits to source together. the secondary is in the scale

efficiencies we can create in the back office. we have a shared service center and can really benefit from putting the two businesses together. there is a big commercial overlap between the two businesses. we have structures that will allow us to become stronger together and more efficient as we grow. it is a real benefit from the two companies coming together in a complementary way. katie: you say overlap and i think layoffs. when you think about headcount, are you expecting reductions there? nick: always when you put businesses together you're looking for efficiencies everywhere. we have been through a number of these experiences over the last few years. the key is that we get the best people in the best jobs and we take care of everybody through that process. we are going to become more efficient as we come together. katie: i want to talk about the m&a environment. you and i were talking that you haven't seen a lot of m&a

stateside and over where you are as well. when you think about why now for the deal, what was the decision there? nick: it is a combination of factors. the first is as a business we completed our transformation to focus on specialty food ingredients and the future of food. therefore the time for us is right. as we look to the industry structure and talk to each other, we believe that being more relevant to customers by bringing our combined portfolio together will allow us to grow faster together. it is a choice on both sides that this is the right time and the great thing is it has come together in a way where we have done a bilateral agreement that both companies are very happy with at a time that suits both of us. katie: i really appreciate your time in what i know is a busy day. our thanks to nick hampton, the

ceo of tate and lyle. still i had, -- still ahead, we will have our social climbers segment. this is bloomberg. ♪ ♪♪

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katie: time now for social climbers, the stocks making waves on social media. mcdonald's is going to the mat, escalating a bitter price were in the fast food business. the burger giant kicking out a marketing blitz with a new five dollar deal meal which will include a mix double, chicken sandwich, small fries, four piece nugget and small soft drink. amazon shoppers can expect less plastic in their packages. the e-commerce giant replacing classic air pillows with recycled paper. the company said they will

eventually replace the hard to recycle white and blue plastic mailers with paper sleeves. the black market for weight loss drugs is thriving and eli lilly is sounding the alarm and warning about the dangers of fake and compounded versions of the diabetes and weight loss medications. eli lilly announcing new lawsuits against wellness centers and medical spas that advertise their drugs and say they never sells medications on social media. you can follow the latest company buzz on the terminal. the s&p 500 is still green but just so, up .1%. we were at higher by about .3% earlier but giving up some of the gains. looking at big tech, flipped into negative territory. the nasdaq 100 currently off by .1%. all as a yields continue to climb higher. the two year treasury yield higher by three basis points.

coming up, ev charging wherever you go. chargepoint and lg are forming a partnership. the ceo joins me next. this is bloomberg. ♪ sweat isn't sweet. it's salty. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty.

katie: chargepoint and lg announcing a new partnership this week. the companies are making -- aiming to make ev chargers more accessible to consumers. here with more is abigail doolittle. >> the stock is responding positively. there is this announcement that lg electronics is partnered with chargepoint to expand is ev charging network in the u.s.. the initial result of the partnership will introduce commercial charging solutions that combine chargepoint's charger management software with lg's advanced hardware

deliveries, expected to happen later this year. you can see we have chargepoint teaming up with airbnb to add residential charging to listings and collaborating with porsche north american service integration, so this ev charging company, lots going on for it. let's take a look at this stock along with his competitors on the year. you can see some serious decline might chargepoint down 35%. blank down about 19% and then bloom energy down about 7%. i would argue one point on chargepoint, the reason we have this decline is there is a significant shortage. not everyone is buying in on the idea that there is going to be success here in terms of these announcements. in blue, we're looking at the stock price. the shortage is currently 28%, so that is pressing on shares,

but if they continue to do announcements we could see this flip. i would remind everybody of tesla back in the day. katie: thanks for that context. we were number the days of those shorts, but let's focus on this part or ship. we are going to do this with rich more of chargepoint. it manages more than 306,000 charging points. it is great to have you with me. i'm curious how people charge their ev is now. is the bigger opportunity in the commercial or residential space? rich: a lot of the charging start of the home and it is a major part of charging solutions. if you look at partnerships we have done so far and the deployments we have done, it

really supports charging in all those areas. our business is around enabling customers to stand up charging commercially where they want to access customers and enabling homeowners to stand up charging in their own place so they can charge at the lowest possible. >> when i think about ev charging, it feels like a chicken and eggs situation because you've analysts are going they were up ring success hinges on ev adoption to spur the greater need for chargers and i would imagine your standpoint is it is range anxiety depressing ev demand and that is going to unlock it. walk me through your calculation and how your thinking about the depressed ev demand. >> q1 demand on our network -- we provide hardware and software for customers that want to electrify. we do not own the stations.

we do not sell or monetize energy. when we look at our network, the q1 demand was up 20% year-over-year, which implies there are more vehicles being sold that are putting pressure on the existing network, so that is -- when you look at that, what it says is that the market is starting to stabilize from a demand standpoint and you should see the next group of chargers follow as demand continues to increase. the traditional oems are seeing growth on the ev side. tesla was down a little year-over-year, but they sell a lot of vehicles through north america. it is not like ev stopped selling. demand has started to increase and we expect to see come up with demand available in north america, we start to see more ports being needed through the back of the year. this will start to stabilize as

ev adoption increases. >> i'm glad you brought up tesla because i haven't think about the competitive landscape. tesla has its supercharger network and other competitors as well. what does it look like to compete? how do you do that at this stage? rich: there is a market where you will see high-power chargers deployed and you will see a market continue to mature through hospitality, arenas, everywhere you go and spend a long time. see marcus developing equally in both of those as far as continue to deployments, but one is going to go -- grow faster than the other. the best place to charges where you spend the most time on purpose, so when you have to use charging because you are going someplace where you need to supplement normal charging that you have access to, we see the business case is being built out

separate from each other. there is a case for d.c. charging and all the places those go. then we see a strong market through all the use cases in north america. that is everything from commercial to where we see charging growing. employees start to rely on that more than ever as a place to charge and then hospitality inconvenience are continuing to grow and seeing good utilization and then d.c. utilization starting to increase as more cars are deployed and there is more pressure. katie: you want to charge where you spend the most time because it takes a long time to charge the ev. you think about range anxiety. i do not want to be stranded waiting for my vehicle charge. when you think about shortening the time it takes to charge, how

long a process is that to get on par with just refilling your gas container? rich: i have two ev's and a gas car. you could use to your car being full and you have to take it for granted once you have been a driver for many years. when i'm home, i do not think about how long it takes for my car to charge. i come home and plug it in and it is full every day, so that is the easy part. the place where consumers have to think about what their ev experience is as when they are doing longer trips, which is not the norm in the u.s., that people are doing 200 or 300 miles at a time. when they need charging, what is the place where they are going to do that? if you look at traditional fueling on the gas or diesel side, they are probably in and out in 10 or 12 minutes. taking that to 20 minutes, what

is the experience that retailers provide for customers? the 20 to 30 minute range is on average what you are going to see, so when we look across all the usage that we see in united states, you are seeing an average time from 20 to 40 minutes. 40 minutes would generally say that someone came in very low on charge, down in the high single digits and low double digits. they are spending substantial time at the pump. we are seeing at the charging station a behavior of 20 to 30 minutes. we think that is acceptable if they have the right experience and things where they can grab something to drink or use the restroom. there is going to be more experience deployed around d.c. charging. katie: i want to talk about the share price. shares are down nearly 82% over the past year.

what do you think investors broadly are missing about the space? rich: we enable businesses to stand up electrification for their business, whether that is a fleet or home. look at the partnership where we did that. lg aligns with us on how they serve clients on home and retail and health care. these are places we knew there was going to be more advancements in technology when it came to hardware and other energy management, so when we look at this this is about a better together with lg and solving problems on helping businesses stand up, so we do not have to make a bet on energy costs as that gets deployed. as long as we provide world-class hardware and software and solutions, whether with a third party or with our

own, as long as we can continue these businesses seeing the value of providing this for their customers, chargepoint is in a good place long-term. there is pressure around utilization and politics in the u.s., but after being in ev driver for years it solves a lot of problems that consumers need to solve as far as convenience and long-term cost. vehicle prices will continue to become more competitive but technology will continue to be better over many years. charging will be a big part of life for a long time. katie: our thanks to rich mohr of chargepoint. let's get a check of these markets. abigail: we are looking at the nasdaq 100 down slightly. if the decline holds, it will be the first down day in eight

days. let's take a look at the s&p 500. last time i looked, it was slightly higher, up just a little. it will be interesting to see which direction wins out in terms of this rally for the s&p 500. the index is higher. so is the two year yield, probably one pressure on stocks, especially big tech, and then oil up about .8%. if we look at the s&p 500 and its range, it is impressive. take a look at this breakout. we do not know if it is a real break out yet. take a look at the rsi back in december, much higher than where it is, a way of saying the current buyer is not as confident. if we break it down relative to stocks, we have the s&p 500 up slightly, accenture higher on

strong bookings. broadcom giving some of those gains back. look at apple, down 1.4%. this stock may be starting to break down out of its big rally. katie: keep your eyes on apple. coming up, a columbia business school professor of finance and economics joins us to talk about why education should be a top priority on the political agenda. this is bloomberg. ♪ i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars.

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abigail: this is bloomberg markets. abigail:coming up, research affiliates chairman rob arnott at 3:00 p.m.. this is bloomberg. katie: it is time for our daily wall street week conversation. today, we are focusing on the evolution of economic models in

higher education. glen hubbard, professor of finance and economics, sat down with david westin earlier. >> the historical debate over mercantilism is one we are living through again today. the traditional response from economists is you need to focus on markets, yet we often make that sound abstract. why should you care about markets? they are delivering the best outcomes for all of us in the economy. markets do not always work perfectly. the title was markets for the people. when would you step in? for national defense reasons, for example, to support basic research and innovation, but we need that kind of focus. we do not need to go back to friedman or industrial policy of the biden administration. >> and there are massive slowdowns like the great financial crisis where you would say the government does need to

step in. you cannot let the markets bail us out of that. >> let's go back to intuition that economists like keynes had. it was the notion of the state being an actor of last resort in a true crisis, really awful events, but now the state keeps stepping in. when does the state not step in? that is not what keynes had in mind and it is not a question about budget as much as the competitive senses of the private economy if the state is always going to bail us out. >> is it a question of democracy as well? once the people see they can get bailed out, there's impetus to have elected representatives bail them out and people want to get reelected. >> exactly, except we cannot do it. if you look ahead at the next 20 years of fiscal policy, we are going to need to spend more on aging americans.

we will have to raise spending on defense. no one seems excited about raising taxes. this math does not work. >> how do we create a society of equal opportunity without guaranteeing results? >> i think we need to have a right to opportunity as we have property rights in markets, but a right to an opportunity is not the right to a result, so a right to an opportunity could be more support for education and training and places that have been left behind, for government supporting more in the way of basic research. all of that is different than a system that says results only matter. >> what about large differences were people start in the process? we all differ where we start out come up there are huge differences here were some people are well behind in terms of wealth and background.

how do we make sure they have equal opportunity that compensates for what they have been deprived of for generations , for example the black and white divide? >> there are a lot of reasons we have black-white wealth divisions, some of which come from policy errors. i do not think we can fix that overnight, but we can make sure everybody has access to the same opportunities and have a system that encourages work and wealth building for anyone who wants to do so. >> you often come back to education, not just getting a bachelors degree. it can be trade schools. you talk about land-grant schools in your book, but when we have money to spend we do not seem to spend it on education. we find other things, war, infrastructure which is a useful thing. i do not ever hear that coming

up to the top of the list >> politically. we have done it twice. the land-grant college movement was a decision that the country needed a different set of skills, going from an agrarian to a manufacturing economy. the g.i. bill was the same kind of intervention. with technological advance and you developments in artificial intelligence, we need that kind of moonshot approached education and it has to come to the top of the list. in the 2024 campaign, i am not hearing it. >> our education in this country is under a microscope. there is criticism of it from all sorts of directions. would it make sense to write a check for higher education without reform of higher education? not all of us think it is headed in the right direction on its own. >> but i do not think elite

private universities are the problem or solution to what we are talking about. rather, it is community colleges , vocational training. that is where we need to be spending money. reading big checks to harvard and columbia, i am not sure it is good for that problem. it may be good for basic research, but are elite universities need to get their house in order fast. katie: that was glen hubbard and david westin. that was an interesting note to end on. he is at columbia university, but writing a big check to harvard or columbia, maybe that is not the solution here so when we are talking about higher education issues. >> he has never been talking about that. he think there are other approaches that make sense, like trade schools. what you heard was a criticism of biden on mx. and trump --

bidenomics and trump's approach. he is trying to find a different course. he has a paper coming out on foreign affairs trying to come up with a third way for economics. katie: you walk through the trump and biden campaign's. like you discussed, it seems like education is not exactly on the priority list of either campaign. david: we have spent so much money on so many things, including the iraq war. imagine if we devoted a portion of that education. it would address issues where people are starting out in this suppose it competitive race. we want equal opportunity, but that does not help if you are starting 50 yards back from where your competitor is. tomorrow concerns france and western africa.

we talked about the election coming up in france but also russia moving into western africa. katie: looking forward to those conversations. our thanks to david westin. this is bloomberg. ♪ clogged gutters can cause 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.

>> let's take a quick look at some stocks hitting highs and lows. we have the williams companies hitting a 52-week high. you have eli lilly hitting highs after the drug giant broadened efforts to crack down on fake and offbrand versions of its drug. on the others of the coin, you have warner bros. discovery hitting a 52 week low after seaport global cut its price target. you can see that stock down about one point 67% or so my

currently trading at seven dollars a share. let's look at these markets now. you have higher volume, up 37% compared to its 20 day average, not exactly translating into big price moves if you look at broad indices now. the s&p 500 is higher, but not by much, by about a 10th of a percent. the nasdaq 100, i am going to call that unchanged. even though we are seeing nvidia build on its momentum and that rally that brought it to the world's most valuable company, you are not seeing follow-through when it comes to the nasdaq 100 and you look at the two year treasury yield higher by about three to four basis points on that two year yield. coming up, ed ludlow.

that does it for bloomberg markets. this is bloomberg. ♪

>> this is bloomberg technology with caroline hyde and ed ludlow. ed: i'm ed ludlow in san francisco. this is bloomberg technology. car dealerships across the u.s. hold services -- halt services after a cyber attack. plus, the openai