abigail: we are 30 minutes into the u.s. trading day on this wednesday, june 26. here are the top stories we're following. rivera's lifeline. volkswagen commits $5 billion with the e.v. maker. is that enough to take on tesla? t.b.d. dr. pepper's rise in popularity the 140-year-old dr. pepper is the second most popular overtaking pepsi in four decades. the c.e.o. joins in a second. and a new era for "businessweek." brad stone joins to discuss the

magazine's new monthly format and its debut cover story. how arnold built it into a luxury empire. ♪ >> i'm katie greifeld in new york. welcome to "bloomberg markets." markets at this moment, and it's tepid out there. katie nasdaq 100, higher. and meanwhile, it's the small caps, the little stocks that are the biggest loser today the russell 2000 off by .4. but let's talk about a big winner, at least for one day. because shares of rivian getting turbocharged after announcing a $5 billion pact with volkswagen. it gives vw access to rivian

technology while rivian gets a mush needed infusion of cash. while wall street celebrate the deal, the head of equity analyst says to pump the brakes. >> this is huge sigh of relief rather than a celebration. but it's $5 billion enough for them to meekfully -- meaningfully rival what tesla is doing? katie: joining us on boum is ed ludlow. how substantial is this for rivian going forward? >> a lot of staff of rivian is that it derisks the balance

sheet issue. a lot of people have focused quite singularly on rivian's rate of cash burn as recently as the first quarter of this year and they're still losing about $40,000 for each vehicle they build. and it's interesting because they have a lot of commitments in terms of spending capitals. so they're going to launch the product from illinois but they have pivoted the launch of that vehicle away from georgia. at the same time, they remain contractually committed to investing $5 billion in the -- by the then of the decade. it is a huge vote of confidence, if not from a band in association perspective by vw. katie: and let's talk about the volkswagen side of things. they've made some commitments in the coming decade to the e.v. space. ed: so like volkswagen's just not very good at software, frankly.

they've had major issues with carry ad which is the unit they set up to work on the software and it's not gone very well. and they've spent have a lot of money on it. and now they're going to spend more money on rivian who is very good on software in. the first instance, it's a $1 billion equity investment in the form of an insecured convertible note through december 1 of this year. and a promise to buy $1 billion of equity each year in 2025 and 2026. if rivian's share prices goes up then it will have a less diluted effect. and therefore, how much of this company is vw going to end up owning? and rivian's not got a great track record in j.v.s to be honest with you.

katie: let's turn to the broader markets. we're joined by nancy dowd. and nancy, i want to start with the stat from yesterday's market that really surprised me. you take a look at yesterday's rally. it was supported by only 113 of the s&p 500 members rising. that is the second weakest breath for a rally so far this century. how are you thinking about a stat like that and the fact that this rally is so, so narrow? nancy: this is the type of year when we look at what's been happening in the first six months and we think is the glass half-full or is it half empty? and we tend to lean towards the half-full with some optimism towards the inflation report coming up on friday and potential upcoming monetary easing, via rate cuts and of course, big tech performance as

you just noted. it is a little concerning and unnerving that the broader s&p has lagged behind. but, you know, that presents an opportunity and maybe that will change the second half of the year. katie: what would be the catalyst? we've been waiting but nothing sustainable. what is going to be the spark? nancy: just optimism. investor settlements changes when -- sentiments changes when they see the mark. but that's a word of caution because markets don't continue to go up indefinitely. there's always going to be some kind of a bled bar correction along the way. and investors tend to forget about that. but i would say be very selective and really, really

focus on quality and personal goals and objectives as well as risk tolerance. that's always the big thing. risk tolerance is very important because we get all timed up over what's happening with a handful of stocks and we forget that things could turn very, very quickly. katie: and i appreciate that point that it really depends on your personal goals. what are you trying to do? are you trying to build weather or day trade it? all comes down to your personal goals. but for that thought on quality, that it's time to focus on quality. what does quality mean in this market? nancy: well, earnings, obviously. that's always the word for quality. but where is the market going in general? we have to look for opportunities, perhaps, in sectors that have taken a big beating, things like small cap stocks, longer duration bonds.

katie: for so many people, quality means tech. and feels like tech is really the sector that's delivered in a big way when it comes to the earnings front. nancy: and that it's true. it's dominated the market. and it is very exciting, what's going on here. i mean, i happen to be in my palo aalto office in california and in the midst of all this excitement, the best advice that i've given to the clients is you need to take some money off the table. and it's become way too large a percentage of their net worth. and when that happens, it's time

to take some money and run as i've called it. and i think that's a prudent way to do it because you're still participating, but now you've got something in your hands. and as with taxes, you know, we all expect taxes to go up, knock down. if you're waiting, you're just going to wait to pay higher tax later, probably. i can't predict that but that is certainly a consideration as well. katie: on the topic of taxes, we are just months away from the 2024 presidential election. we have the first debate this week between biden and trump. and it's interesting. you say that it takes out of your portfolio and even with that in mind, how are you preparing for the potential of volatility around that fact? nancy: that's probably the biggest question i get from every single client meeting. everybody's talking politics because it's the buzz right now. but it's exactly correct. take politics out of the

portfolio because in the end, it doesn't mean that much. the sectors that have continued to do well under every administration, former president baltimore, former president trump, financials, health care, they continue to do well. and the energy sector tends to be tied to geopolitical risks and we certainly have a very, very big amount of geopolitical risk at this time. and that will probably affect the energy sector. but the sentiment will be, you know, maybe the day after the election, a day a two of a lot of, you know, feelings around it. and it's going to be business as usual after that. katie: nancy, i appreciate your

time today. our thanks to nancy daoud of ameriprise financial. jess, we were just talking about tech. tell me about this chipmaker amd. >> they report after the closing bell today but amd, if you're thinking about the philadelphia semiconductor index, stocks moving higher. this is big because the earning season doesn't get started until the middle of next month but we don't hear from nvidia until the middle of august. but this matters because it's a memory chipmaker. it applies to nvidia. so what does this mean and especially if that gives us insight to the a.i. story after the bell? katie: that disposed my own bias. nvidia and everyone else. we're talking about micron, of course. earning season, it never really ends or starts.

tell me about whirlpool. they're having a good day. jess: this stock up about 14%. so it's on pace since march of 2020. so that was obviously during the height of the pandemic and a lot of people were working on decking and trying to revamp their homes when everyone was stuck there. but the reason it's higher, this is a firm in germany. and this is reuters that reported this. they're considering weighing a bid for whirlpool. if you are looking at that stock, like i mentioned, still higher here this morning by quite a bit. but still remaining under pressure because it's in a down trend of around below $100. so down 18% year-to-date. but nonetheless, another stock to keep a close eye on. katie: and let's talk about general mills. good reminder that it always comes down the outlook. jess: that's right. this can give you a lens into and this is something that tom

barkin has talked about. a lot of these companies not just general mills but other consumer package have had a deal even with lower volumes the past couple of years. they were able to pass on those costs. clearly, it's pinching the consumer and you can see this when their outlook for organic sales is flat to 1% for the fiscal year. so they're looking at how general mills and then other consumer package companies may have to start having better deals. selling two for one to potentially pass that on. if they don't, that's really something that has weighed on their margins and stock prices. katie: you can see that working all the way through shares. we're going to smic the food and beverage industry next because dr. pepper prevails the soft drink overtaking pepsi as

america's second favorite soda brand. we speak to the c.e.o. of dr. pepper, next. this is bloomberg. ♪

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katie: are you a peper? dr. pepper is coming out on top of the cola wars as it beats out pepsi according to beverage digest. and i'm thrilled to say that joining us now is tim cofer. he is keurig dr. pepper's c.e.o. he is joining me right now. when you look at this growth that you've seen, it's been very, very steady over the past 20 years. that includes at least one recession, a pandemic as well. tell me how dr. pepper

engineered this, this steady growth that we've seen over two decades. tim: yeah. good morning, katie, thanks. i tell you, i'm so proud of what our team has done here at dr. pepper. as you say, growing consistently over these last many years. and it's really -- it starts with the brand. dr. pepper's an incredible american icon, right? it is truly the oldest major soft drink in the u.s., developed right here in texas. and over the generations has continued to be relevant year after year. it's a unique one of a kind taste that's like nothing else, backed up by those 23 flavors. and our marketing team does an amazing job of really tapping into current culture to play off that uniqueness, to bring people together over a dr. pepper. and you see that in our marketing campaigns with college football, things like fans volatility, our current

campaign. it's a pepper thing. you see it in our innovation. i got a few in my office behind me. last year, dr. pepper strawberries and cream, number one carbonated soft drink innovation in the industry. $300 million in sales. and following up this year with my favorite, it's creamy coconut which plays into that whole dirty soda trend that you see out there. so, just some amazing marketing sales activation and innovation that led to this exciting milestone. katie: that's where i want to go. we're familiar with dr. pepper's work when it comes to marketing in college football, but you're also having a viral moment when it comes to tiktok. people are putting pickle juice with dr. pepper and there's also the dirty dr. pepper out there. and i'm curious about how one sort of engineers a viral moment. is that something that you sort of built to happen or was that just a stroke of luck? tim: yeah, you know, look, one

of our key strategies is around consumer obsessed brand building. you know, to be great in cpg, you must be consumer-centric and we are here at keurig dr. pepper. and so i think we really have our pulse on the consumer, understanding kind of the trends, what's hot and what's moving and then immediately happening into that cultural moment with our brands. and a brand like dr. pepper is a perfect platform for it our consumers love this brand. they're so engaged in this brand. and so moments like that, dr. pepper with pickles, dirty soda, etc., we tap it into, we innovate against it, we market against it and. amplifies that obsession. katie: the dirty dr. pepper sounds good. i want to talk a little bit about the rankings here. you just edged past pepsi when it comes to brand popularity. coke though has a really healthy lead. i mean, 19 point something

percent. when you think about the future, is coke in your sight? is that the goal? tim: yeah, we can today then third largest beverage company in the u.s. and dr. pepper, again, this milestone of becoming the number two in soda is a huge moment for us. i feel great about this advantage platform that we built at keurig dr. pepper. and it is around, you know, our brands. we have 125-own license and partner brands. but one of our keys is really an advantage route to market. we're one of only three national dsd or direct store delivery distribution systems in the u.s. we cover 80% of the u.s. population and then we cover the rest through partners. that gives us power right to that critical moment of truth at the point of buying. and i think that will continue the trajectory we've seen. dr. pepper's grown share for

seven consecutive years as a company, total keurig dr. pepper, $15 billion in sales. we've thrown off since the merger, a 6% kegger on the top line, 11% eps growth. and we expect that to continue. katie: i want to talk about some of the up-and-comers, still, far, far in sort of the rearview mirror here. but up-and-coming nonetheless. you think about some of these healthy sodas, oli pop, and poppy wave. is that something that you're looking into? that healthier soda that seem to be catching on as well? tim: yeah, i mean, soda overall, carbonated soft drink is a great category here. last year, it grew at 9%. this year, it's up mid single digits. it continues to be very relevant. carbonated of the drinks continue to ba great value. we have a great portfolio that i

think offer consumers all of their needs and choices. that includes zero sugar. that's one of my favorite dr. pepper zero sugar. and of course, we continue to look at the evolving marketplace. we've got a great reputation as a preferred partner. you'll see us innovate into these spaces including into hemet and wellness sub segments and you'll also see us partner and acquiring in those spaces. so we're always on the lookout for a great growth pockets here at kdp. katie: and i want to couch this conversation in the broader economy right now as i said, dr. pepper has been around through many, many cycles in its 12340-year history but right now, you have inflation still a problem for many americans. and dr. pepper is one of those companies that has been pricing or passing along those cost increase. and i'm curious where you are right now when it comes to pricing power and how you're thinking about your pricing

strategy. tim: sure. well our brand's definitely are strong and that brings a level of pricing power in the marketplace. what you saw coming out of covid and with all the supply chain disruption, you did see some significant pricing really through last year, 2023 where pricing was the primary component of our overall sales growth. you're seeing that beginning to rebalance in the first quarter that we reported, you have a mixed number closer to the zero line. and as we go into the back half of the year, i think you're going to see a recalibration around price vol mix where it's going to play a bigger component in our sales aldrich. -- algorithm. we're committed to the top line growth on the year and high single digit eps growth. >> we should also talk about coffee that's about a third of your sales. you think about some of the concerns out there. one of the kindergartens weakening demand basically for

home brewing. and when it comes to that particular segment, are you seeing stabilization there? tim: yeah. you know, here at keurig, we're the pioneer and the preeminent single serve coffee system at home. consumers are highly engaged with coffee right now. aside from water, coffee is the single most consumed beverage in the u.s. and just last year, it hit a 50-year high. and a what we're seeing right now can play to our strengths. we're seeing a challenge consumer particularly around the low and mid income ranks. and the value proposition of a keurig cup of coffee particularly in the broader frame of away from home coffee shop behavior is significant. and that's one we're playing into. we're doing that through obviously price and promotion strategy, price-back architecture to get a good price value for the consumer and right outlay. value marketing, to be clear to consumer that you can have, you

know, for the price of one monday cup of coffee away from home you get a monday through friday with keurig at home. and we put innovating in this space. cold coffee, it's obviously a huge trend with a new brew and chill brewer. great pods that make cold coffee. premium coffee expressions. and then we announced an intention to launch a revolutionary new system that includes plastic-free, aluminum-free pods that will even make a high pressure espresso. so we're innovating into this case and that's why we remain bullish in our coffee business. katie: i want to talk about your career a little bit. because you're new to the top job over at keurig dr. pepper. you only took over in april. you joined the company in november as coo but you have a long career when it comes to consumer package goods. i'm curious, you know, from those other companies that

industry experience that you have, what lessons are you bringing to keurig dr. pepper? tim: yeah. thanks, katie. yeah. look, i only joined this company last year. but i do bring over 30 years of experience in cpg. and, you know, a couple of observations. one is this beverage industry is a great place to play. within cpg, i think beverages are the most dynamic part of cpg. consistent pockets of growth within beverages, kdp is an advantage platform. that's why i joined this great company. we've got incredible brands. we've got incredible route to market strength. and we have a winning culture. i like to call it a challenger culture. you know, we're hungry. we like to play offense, not defense. we like to disrupt. and i think a great example of that is what you've seen with brand dr. pepper. katie: all right, tim. hope to keep this conversation going soon. really appreciate your time today. that, of course, is tim cofer,

he is the c.e.o. of keurig dr. pepper. we do want to bring you some breaking news in the currency space. the yen, sliding to its weakest level against the euro on record. we're going to continue to watch that one. this is bloomberg. ♪ to me, harlem is home. but home is also your body. i asked myself, why doesn't pilates exist in harlem? so i started my own studio. getting a brick and mortar in new york is not easy. chase ink has supported us from studio one to studio three. when you start small, you need some big help. and chase ink was that for me. earn up to 5% cash back on business essentials with the chase ink business cash card from chase for business. make more of what's yours.

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so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper. today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper.

>> let's turn the spotlight to a company fueling the clean energy transition ,cf industries, a fortune 500 company and the largest producer of ammonia. abigail doolittle has more. abigail: it is quite fascinating in terms of using clean energy to fix atmospheric at -- nitrate with hydrogen from natural gas produced. i.b. give this is ammonium. it is great stuff for clean

energy. here is a breakdown per the bloomberg terminal. one of the biggest chunks is ammonium nitrate. ammonia, and so here is a bit of a breakdown relative to the overall revenue. if we look at the revenue let us look at this chart. the estimate for the second quarter is $1.6 billion. down just a little on a year-over-year basis. look at the sequential quote -- growth, a nice trajectory. if we were to compare the clean energy space overall let us look at what is going on. these industries outperforming the clean energy index by to some degree but both underperforming the s&p 500. this gap is creating a nice opportunity. >> i really appreciate that. let us keep the conversation going with tony, the president

and ceo joining me in person. great to see you. so, like abigail i am not a scientist so i am hoping that you can explain in layman's terms how exactly this works. tony: i am not a scientist either so hopefully we can get some of this together. when you are making ammonia you are using natural gas and air and then the byproduct is co2. we signed a record-breaking deal with exxon mobil where we will capture the co2 and sequester 2 million tons of it beginning next year. we are going to try and replicate that exact same initiative across a number of -- a number of our other plants and we are in the process of eliminating n2o which is a potent greenhouse gas. and a variety of other smaller initiatives. we have a goal of 2050 to get zero and 2030 to reduce by 25%.

i am really happy to say that we are well on our way to achieving that. >> how do things such as the inflation reduction act and subsidies, how meaningful are they? tony: absolutely critical. we operate in a hard to abate sector. we are an energy intensive trade exposed meaning we generate quite a bit of greenhouse gas emissions. and having some support from government initiatives to help us go about making the necessary investments to d carbonized are absolutely critical. we would not be able to compete with on a somewhat level playing field with a state-supported company out there without legislation like the ira. >> that makes a lot of sense. and you mentioned a partnership with exxon. what other partnerships are you eyeing?

tony: we have an existing one with bp. we are buying low slip methane from them meaning that we are reducing methane emissions. methane is also a potent greenhouse gas and we signed deals with mitsui and jura which is reducing the colburn so they are reducing greenhouse gas emissions moving up 50% over time. >> we are talking natural gas to ammonia and that conversion is foundational. the u.s. is among the lowest cost natural gas markets in the world and i am curious how you see that evolving as we continue down this path. tony: we could not be happier where our production facilities are located. not only do we have some of the best reserves of natural gas and

cheapest cost of production but supportive legislative environment around being able to capture and sequester. it puts us in an unusual position to be able to produce in large quantities d carbonized -- decarbonized ammonia. there is no carbon embedded in the ammonia molecule and makes it a clean fuel. it can be used to transport and store hydrogen or a fuel of its own right and it will be an enabling technology. >> i also want to talk about fertilizer and the prices we are seeing. we had -- that has fallen from the cycle that we saw but you compare that to pre-pandemic levels and we are well above where we were in 2019 and before. i am curious on how you are seeing farmers respond to wake. -- two a. tony: there has been some

consternation and of course grain prices responded as well. those things move in concert with one another. and fertilizer is a global commodity. it is the same whether you make it here, russia, or the middle east but it is also the last ton of production that sets the global pricing. we are not establishing pricing, the market moves as it goes. and in general even today there is an ample opportunity for farmers to make a good return. >> before i let you go i am curious with that global perspective in mind, what is the supply and demand balance look like right now? tony: there is ample supply. it takes about four years to build a new facility. you can look around the world and get a good perspective of how much new capacity is coming on.

there are other places running short of gas, trinidad and challenges in europe. netting off what is likely to close the normal demand growth rate will be higher than the amount of new capacity added. we expect that balance to tighten over the next couple of years and that is a really constructive dynamic for our business. >> i am still not a scientist but i learned a lot. great to see you in person. that is tony will, the ceo of cf industries. an hour into the u.s. trading day, we will get a check on the markets. abigail: we are looking at the possibility of a fourth-down day. two declines in the s&p 500 and down .1%. will it be a value or growth day? we had a big rotation after a miniature rotation into value. the yields are yawning around it and the two year yield isn't not

doing anything. take a look at the big story. the yen-dollar up six -- .6%. basically at levels that we have not seen in a long time. let us look at a long-term perspective. years ago all you would hear about was how strong the dollar was relative to the yen, i am talking about the 1980's. we are at a level last seen in that area. then we had a period of strength going back to let's call it right around the gfci. the yen was seen as a haven currency so money was flocking in. also into the dollar because of the risk off period. here we are again set resistance. look at this monthly momentum indicator going to the downside may be suggesting that resistance will hold and we will see the yen strength and. there is some thought in the boj that there could be tightening. as for some of the movers, fedex

up nearly 15%. of course they beat estimates on a slow down in the decline of their parcel business and the possibility of a divestiture of their freight business and they are consolidating other businesses. investors are liking it. rivian soaring up on the $5 billion deal with bw to create ev vehicles and software. the odd stock out and flipping on the day is the third largest weighing. nvidia up almost 7% and is now down. technically it looks like we can continue to see nvidia takes a breather may be some folks taking a second thought around the ai craze. >> that volatility we are seeing is very striking. we appreciate that update. into break let us take a listen into michael eric getty speaking

at the bloomberg invest conference in new york city. michael: we have been quite inquisitive so you can look at our growth, 20% of our growth over time has come from some kind of m&a. i have a very strong view that these markets will continue to consolidate. the reason that they will consolidate is from the manager's perspective there is huge benefit to scale. the larger we get the more people we can have and the more deals we can do. the more deals we do the more information we get in the better information we get the better investment performance. there is a virtuous circle and cycle that that scale creates in private markets and people are seeing that. investors are putting more of their dollars with fewer managers because they see that opportunity. >> that was michael of aries speaking at the bloomberg invest. you can watch that conversation on your terminal at live go. this is bloomberg.

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visit sandals.com or call 1-800 sandals. abigail: this is bloomberg markets and you are looking at a live shot of the principal room. coming up josh weinstein joins bloomberg tv at 2:00 p.m. new york time. this is bloomberg. >> it is time for our daily wall street week conversation. roger altman was among the executives that met with president biden. he spoke with david westin about the sentiments involved insiders around the government's role in the economy. roger: i served twice in the treasury at length and part of my responsibilities involved interacting a lot with business.

and the business community always want certain change. that is the nature of that interaction. there will never be a period where business as we give you a score and we like everything you are doing. they will never do that. so it is the nature of it for them to have some things that they would like to change. now, i think you put your finger pretty well on it. the macro from the business community point of view is very good. as you say at this moment, all of the major stock indices are up around all time highs. they have been a major rally and the yield on the 10 year treasury is 40 basis points lower than it was which is a big change. and we are still seeing consistent growth, as i mentioned.

the macro from the business community's point of view is good. yes there are a lot of people that think the biden administration is doing too much from a regulation point of view. they do not like the stance of the ftc and justice department on any trust. and some of course in the engine -- in the energy industry do not like the regulation that the biden administration has promulgated. however, sitting ceo's of major companies do not as a rule indoors residential -- presidential candidates, they are not -- that is not new. they do not historically do it. most boards of directors would not make it -- not make the ceo to make an endorsement. they will not take a position publicly one way or the other.

but, when they look at the trump agenda, i think a number of them do not like it. let me be specific. the new york times published quite a helpful and concise summary of their understanding of the trump agenda about a week or 10 days ago on the front page. and the first few items were deportation and tariffs. so let us talk about those and we will start with tariffs. so president trump is proposing a 10% tariff on all imported goods with a 60% tariff specifically on goods imported from china. the impact of that according to

the peterson institute for international economics which is nonpartisan, would be $1700 per average american family. think about that a minute. $1700 a year. now if you want to ask and i have not done this that i am pretty sure i know the answer. if you ask the ceo's of companies like walmart, costco, home depot or procter & gamble whether they think that is a good idea their answer will be in private absolutely not. then, on deportation, president trump is proposing to deport a little over 11 million individuals currently living in this country on an undocumented basis. the problem is that most of the adults and i am sure it is about 80 or 90% of the adults in that cohort are working. now we have a 4% unemployment

rate and many corporations say publicly that they cannot find enough workers. i heard from the ceo's of marriott to that effect. so the idea of taking let's say 8 million workers out of the country when we have a labor shortage already is an economically distractive one. and if you were to ask in private what they think of that, most of them, but i cannot say all of them, would say that is a terrible idea. in terms of the trump agenda, i do not think there is a lot of support, although of course it is a big community, the business community and there are very conservative elements. i am sure that quite a few like the overall ideology. but in terms of the economic platform, i do not see much

support. >> that was roger altman speaking to david westin. coming up we will explore how a french billionaire built his luxury empire. and why he has not done shopping yet. this is bloomberg. ♪ how am i going doctor when ? 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.

>> the french billionaire and founder burnout -- bernard arnaud built an empire of opulence with brands ranging from louis vuitton to dawn perry own d --om perigone. he sat down with bernard in paris and he is in new york to speak with us. let us talk about how wealthy he

is because you have a great chart that shows that his wealth is on par with elon musk and jeff bezos but it feels like we hear relatively a lot less about arnaud -- arnault. >> he has been the wealthiest person in the world for most of the year according to the billionaires index, it was only until the french elections and the decline of the stock market that his wealth fell a little bit. i think it is $208 billion. he will be fine. i think you are right. his story is poorly understood compared to the tech titans. >> tell us about lvmh and how he built the empire. i was surprised that it was 75 brands. brad: look, a lot of them might be recognizable. they might not know the name but they know dior, louis vuitton, beaudry, tiffany & co. they bought during the pandemic.

it is a massive conglomerate in all elements of luxury and high end travel and watches, fashion. he has really taken, unlike the tech titans who invented the future he has taken elements of european tradition in the past and brought them all over the world. >> he must have a gorgeous wardrobe, one has to imagine. tell me about what is next because not done shopping yet. brad: just today they announced an acquisition of a high end swiss intricate clockmaker. we reported in the story that he has acquired a small personal stake in the owner of cartier. it is significant because this is how he has operated over the past few decades. he is not the founder. he is an incredible operator who has an amazing vision for luxury. but he has acquired all of the

brands and brought them forward in two loma ridge and it has started with these small stakes that he has purchased in companies. in cases like gucci and arm as -- hermes he has failed. with regards to johan report -- johan rupert he wants to remain independent. this is a 75-year-old guy. everyone talks succession he has not done empire building. >> we talked about him acquiring and acquiring. does he ever selloff stakes? brad: he has. it has been few and far between. the retreats you can count on one hand. the amount of times he has acquired and added is the through line. >> i only have a minute left but this quote stuck out. "i have five members of the family working in the group. let's see if one has the capacity to take over." brad: it sounds like a french version of "succession."

his kids are accomplished and they run different parts of the business and he thought a lot about succession and not just how to preserve the company through generations but how to enforce civility amongst his kids. by all reports they get along well. let certain things of they are all equal older's -- owners of one of the holding companies and they have to agree for 40 years about all major strategic decisions. >> a fascinating story to follow and read on print and online. thank you to brad stone. you sure to pick up the latest copy of the magazine out on newsstands right now. what is do a check of the markets. of course on the wednesday the s&p 500 is pretty much treading water. unchanged and may be down a little bit. a little bit of a different story when it comes to the nasdaq 100. big tech stocks finding their footing. cannot say the same for the small caps.

coming up, much more from the bloomberg investors condron -- conference in full swing. that does it for bloomberg markets. this is bloomberg. ♪ ok coming in.. big orders! starting a business is never easy, but starting it eight months pregnant.. that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs. the chase ink card made it easy. when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card from chase for business. make more of what's yours.

>> from the heart of where innovation, power and money collide in silica i -- collide in silicon valley and beyond this is bloomberg technology with caroline hyde and ed ludlow. ed: i am ed ludlow in san francisco and caroline hyde is at bloomberg invest. coming full ev coverage. rivian and vw form a partnership. plus the supreme court clears