>> we have 30 minutes into the u.s. trading day on this thursday, june 27. there are the top stories we are following. sky high expectations send shares plunging after the memory chip outlook -- the packaging business, we will be speaking to howard coker about the $3.9 billion acquisition. it is the latest in a flurry of dealmaking. and online comics company web tune raises money.

we will discuss with david lee and just a bit. i'm katie greifeld in new york. we have hovering near all-time highs. at the stock level, things are much more exciting. take a look at the nasdaq 100 we have that bond market rally continue. about five basis points right now. it could change tomorrow when we have those pce numbers, but for

right now, one stock we are watching is walgreens. it cut its profit forecast for the full year. joining us now with more is fiona rutherford. >> this is the second time they have lowered their guidance. it shows how tough the landscape is right now. less people going into retail pharmacies. walgreens is having we think their footprint. it is brutal. at least taking a look, at least wall street does not have a lot

of faith in the turnaround plan. >> i think that they feel that the plan is solid. an analyst from bloomberg intelligence said earlier today that the excitement around the new ceo has probably dissipated now. >> you can definitely see that in the share price right now. i know you have a very busy morning, so we appreciate you taking a moment for us. it joining us is rebecca patterson. forming the bridgewater chief.

-- 20 -- joining is the bridgewater chief. it feels like every day, we are talking about quiet moves in the market. how much legs left does this rally have? >> what happens to the high-end consumer? there has been a big bifurcation when we know that consumption is key. the lower end is increasing on relying on credit cards. the higher-end consumer has a greater share of wealth. they have more ability to spend and more confidence.

as long as they keep ticking along, it will hold up stocks. if the high-end consumer steps back, i think you have a greater risk that the slowdown will happen more quickly and the fed will ease. we will learn the support for earnings. katie: the lower and consumer is tapped out. talk to me a little bit more about the fed. potentially the first rate cut. even with those expectations pushed out. it is the discount rates.

i think the risk -- >> i think the risk is asymmetric. if the inflation tix higher again, than they have to raise rates and that is the last thing that they everyone to face. still, unemployment rate is ticking up a little bit. it is something to watch. still a large labor market.

they need to be cautious about that. as long as the high-end consumer measures up. katie: i am curious about your thoughts to cut inflation that they should cut rates. think about the effect from cash. you can earn just about 5%. it has certainly made people feel a bit wealthier with what is going on with their money market funds. how much does that narrative hold water with you? >> i have so much respect for rick rieder. it is going to translate immediately into a wealth of fact. pushing up prices, it helps us

kill the inflation bud. katie: this is not often something that we talk about, but it has been weakening. what will stop it? >> it is really the dollar. the dollar is the global currency. if we get u.s. growth moderating , the u.s. is doing lots of business with japan but inflation can come down. if we get that beautiful scenario, the fed can start easing. help and to get off the lows. they intervened at the end of april.

the government is incredibly unpopular and they have to be careful of raising interest rates because of debt payments. the economy is still fragile. the only thing the government can do to show businesses and households that they are trying is to intervene. it sends a message but at the end of the day, it will give you a better level to sell yen. katie: it seems it would be easy to raise interest rates, but it is not an easy thing to do, if you are japan. >> we saw what happened in the u.k. when liz truss tried to increase spending. the are seeing that in france now. the first round this weekend. the filing parties in cutting

taxes and increasing spending. tonight with the debate, i'm sure we will get into debt and deficits. debt to gdp is going to get over to 120% in the next decade. if we raise interest rates, debt service payments take up more and more of the fiscal pie. there are less things for defense, research and development -- people want those things. it limits you. katie: we appreciate you stopping by. we do want to bring you some breaking news from the supreme

court rejecting purdue's opioid pack. it leaves the family exposed to more lawsuits. the bankrupt drugmaker purdue pharma. we will keep an eye on any headlines. let's take a look at what is moving beyond the markets. >> looking at levi strauss shares. nassau -- that stock is falling. first estimates of about 1.5 billion. they reaffirmed their year forecast. they still seeing that revenue up 1% to 3%. overwhelming, nonetheless.

although levi's growth looks ok, wall street was expecting more, given the current popularity of denim. i did not know it ever went out of style. levi's was up when the sale shrunk. most on record. katie: it was popular before. but tell me about blackberry, another blast from the past. >> most people knew it from before everyone had phones. it has now transferred into a software company out of canada. the stock is up by more than 14%. the revenue was at $144 million. it was versus estimates of 135 million. blackberry had a solid start to

the new financial year. we also saw an upgrade to perform -- outperform from neutral. overall, a turnaround story on this blast from the past. >> it is incredible how high the expectations are for so many of these chip stocks. we see the stock moving down so much. as much as 6% after the sales forecast fell short. adjusted revenue. the estimate was about seven point 6 billion. the guidance came in above average aniline -- analyst estimate. the bar is still high. we are seeing a weakness. just off the back.

the earnings and the outlook both beat expectations. clearly elevated. they have a more optimistic tone. the upturned thesis remains intact. katie: we appreciate that roundup. we want to get to more breaking news from the supreme court. it is curvy -- curbing the use of in-house judges in fraud cases. this is for some defendants. joining us with more is kailey leinz. this certainly seems like a blow to the sec. >> now that power is going to be pulled back. the supreme court has decided that those defendants have a right to a jury trial rather

than being tried by in-house judges. this will very much change the way in which the sec conducts force in and cases. we reached the end of the term here and not only does it affect the power to deal a blow in that case, but we are awaiting a verdict on the chevron doctrine. it gives agency to the likes of the epa. if they pull that back, it would restrict the ability of the agencies to do so. we are awaiting that decision, but it is not the only one. the supreme court has rejected

what was in control of purdue pharma. they said they would give up control of the company to pay a fine. finding that it improperly -- we still have about 10. yet to be released final opinion. a lot of news from the high court in washington today. katie: a lot of news and a lot more to come. coming up, a packaged deal. a deal to become pressure. we will be speaking to howard coker, next. this is bloomberg. ♪

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katie: the industrial and consumer package announced it will i the kingmaker for nearly $4 billion. joining us on the news, howard coker. he is the president and ceo. let's talk about the logic of this deal. howard: sunoco is not a household name, but we exist in almost every household in america. $7 billion of turnover. we are -- we have very big plans. one is the paper plant business.

we did in acquisition about three years ago with our position. we are the largest producer. the acquisition in food and aerosol space. it has gone extremely well. -- most importantly, the market reaction has been fantastic in terms of customers. with that background, the opportunity came to us. it was a perfect fit. every way we look at things from a culture and technology perspective. layer onto that the financial opportunities.

the largest producer of steel and containers. katie: taking that position is the biggest maker of paper cans. i do want to talk about the mixed reaction from wall street. seems to be a lot more than what they paid. why that premium? howard: the premium is that they did a fantastic job. the capital invested into the business. the valuation of three years ago versus today is an extremely

fair valuation. look at the synergy opportunity. we are in the sometimes multiple range. the bulk in the first year and second year of ownership. what is not captured is the commercial opportunities. hard to put a value on that. with the reception we received, there is a strategic and extremely interested, leaning into this business that has a reputation of partnerships and taking care of customers. those are not quantified. it is the real upside to this as we go forward.

katie: some of those pulling into the valuation. what are your plans to avoid a downgrade there? howard: we have a clear path to deleveraging over the course of the next two years. starting with the fact that we have pretty high-value assets that are very clear that we intend to sell some businesses. they just are not a good fit for us strategically. katie: you are coming forward with this acquisition. there is a flurry of dealmaking.

and of course, international paper itself drying of takeover interest. what is going on in the packaging industry right now? howard: i focus on what is important to our team and investors. we look at this market and we will have the largest position. it will carry tremendous opportunities in terms of how we are able to take advantage of this large market. yes. a lot going on in this space, but we are focused on sunoco and our team members and seeing this through as an acquisition. katie: we appreciate your time today.

time for social climbers, a look at the social stocks making waves. first up, reporting a 6% slump. blaming bad weather that kept shoppers at home. changes are underfoot at the house of mouse. visitors at disney world will be able to reserve a space for shorter lines up to seven days in advance. many waking up at the crack of dawn. some disney fans not loving the changes, calling the new system confusing and exclusionary. it is three times the size of the lounge. the delta one lounge features spot treatments and soundproofed

work pods. access to the club's exclusive. we do want to bring you more breaking news. allowing emergency abortions in idaho for now. we had a preview of this the other day. it was posted on the website. now we have confirmation that the supreme court formalizes the ruling when it comes to emergency abortions in idaho. let's take a look at these markets right now. we have been talking about how quiet it is. currently higher by about .1%. a little more action when it comes to the nasdaq 100. higher by .3%. that rally continuing with yields lower.

we are below 430. coming up, the largest web comic platform. it will be speaking to david lee, next. this is bloomberg. ♪ feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management.

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katie: it is one of the year's highest profile ipos. webtoon debuting on the nasdaq today. shares are indicated open it $23.25, about the ipo price of $21 per share. let's talk about this with david lee, the coo and cfo. we will get into the fundamentals of the business but let's talk about this ipo raising $315 million. what will you use the money for? david: already we see global consumers love the stories we

generate from the 24 million creatures globally. we will speed up and deepen the tools we give any creator to be a global hit. many of the stories you have come to see on amazon prime or netflix is powered by our platform. you will see is continue to delight more and more consumers in the united states and the rest of the world and invest behind are created using technology as well as data to inform what stories they bring to us. katie: i'm curious to talk to recent ipos. we have not seen a lot of them. there's been a dearth of ipos. i'm wondering why now for this u.s. listing? david: power global flywheel took 20 years to create. if you look at the last quarter results, we are growing on a constant currency basis 14%. we are driving profitability. the business is poised to really grow in leaps and bounds and creatively and globally.

many folks here in the u.s. love our content but they don't know we are the ones behind it. for us it is not just about capital formation. it's about playing at the global stage and being backed by the best investors so we can operate globally. katie: you can see some the content on the screen now. it might not be familiar to our audience when we talk about webtoons. it feels like m&a and -- anime and manga have become popular and high engagement in the u.s. what specifically are we talking about when we talk about webtoon s? david: 75% of consumers in north america are below the age of 25. they are the venerated gen z. imagine a digital universe with every genre and a few genres are 24 million creators that crated ourselves. from this weekly flow of fresh stories we use data and ai to

know which ones can resonate. instead of having to use our judgment on what the world wants to see, we use the world to create content are creators are excited to have consumers explore. it is a great genre. we have countless other genres that update every week. in some ways i think of a web comic not as a digital form of a comic but as a digital storyboard. something powered 100 rich film adaptations. the current number one hit on netflix will bleed today all powered -- number one globally today is all powered. katie: i'm glad you brought a creators. when it comes to the content and the content creators on your platform, how do you keep them there? david: we have a very unique business model. we can see before anyone.

we have 170 million users strong base across every major language that we offer. we can give a creator the ability to see they are ahead while they are a full-time professional. a kindergarten teacher, a graphic designer who does not realize on our platform they have stories the world wants to see. when they have that story we share with them as a fundamental part of the business model all of the future revenue they can have as a publisher of their own story. we have given $2.8 billion over the last six years to creators. they know we are aligned and the number one way for them to go from being an amateur to having a global voice. katie: it is not just network effects. they actually get some compensation in some form as well. i'm curious what the pitch to institutional investors is. if you look at your filings with the sec, you have blackrock purchasing up to $50 million worth of shares. when it comes to investors

outside of blackrock how do you ask planus to them? -- explain this to them? david: for 30 years i worked in public tech companies. i struggled with the idea talking to investors how to justify being a hit driven business. how to explain a human judgment by one of us on a management team knows what this been hundreds of millions of dollars on a future hit. instead when i talked institutions they love that data and ai and empowering a global base of creators -- anyone with a wi-fi connection on our platform can be the next hit. that source of evergreen content, many of us believe it is what the world needs. what the media entertainment is looking for is a novel approach the storytelling and one that he think investors are interested in exploring and supporting with us. katie: i want to talk a little about the path of profitability. you have a net loss of $145 million last year on revenue. $1.3 billion.

when will you be profitable? david: if you look at our class quarter -- last quarter, we posted positive data. positive gap profit. we grew 14% on a constant currency basis. we have the most interesting and creative large global markets to continue to grow into. our growth is accelerating here in north america. places like japan and europe. for us to continue to drive positive cash flow, which we intend to every quarter going forward, it's about executing in the largest market which is i think why large institutional investors are beginning to recognize the future growth is accretive with us. it starts with our ipo today for katie: congratulations on that listing. we hope to speak to you again soon. that is david lee of webtoon. let's check on the markets. we will do that with abigail doolittle. abigail: we are looking at a small gain for the s&p 500 at this point before in the

premarket a small loss. investors making up their minds. over the last several days, three down days and two up days. this will be an even split. the vix, the complacency really is strongly here at a 12 handle. what is interesting, in october and november the futures go sharply higher ahead of the election. some investors gauging for the on ce -- the uncertainty. another measure ahead of the election using tonight's presidential debate as a proxy. take a look at bonds. they are higher. overall treasure etf -- index over the last two months higher, suggesting a little bit of a haven. there are other factors that could be applied. if we go into the movers, lots going on beneath that benign surface. coinbase of 3.4%. that's helped a by bitcoin trading higher. amazon up 1%.

the company yesterday moving above a $2 trillion market cap. micron, not so much. down 5.7%. they put up a great quarter but their fiscal fourth-quarter guidance, the midpoint hits but some analysts are above the high end of their range. given the fact the stock was up 67% year-to-date into the quarter, some investors viewing that as a disappointing -- as disappointing. it had to do with their traditional business as opposed to ai and the ai height and volatility. katie, we have not seen a move like this for walgreens ever. this is the worst move down 24% going back to since 1980 when the cavity first started as a publicly traded company. they missed earnings by 7.4%. they are making organizational changes. they are keeping -- they thought they would spin out the u.k. unit after merging with them back in 2014. right now they are talking about

spending money on that. investors not liking this message overall. boots-walgreens aligns plunging, down 24%, the worst day ever over the last 34 years. katie: an absolute wipeout in the shares. really tough crowd out there. have a guilty little, thank you so much. france and the u.k. are gearing up for pivotal elections. joe sitt will join us next to discuss the potential opportunities and the risks for investors. this is bloomberg. ♪ the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo

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abigail: you are looking at a live shot of the principal room. coming up, special coverage of the cnn presidential debate tonight beginning at 8:00 p.m. eastern. this is bloomberg. ♪ katie: it is time for our wall street week conversation.

claudia shane bound achieved the decisive victory in the mexican presidential election. join us to assess her policy agenda is joe sitt, thor equity founders and chairman and wall street week's david westin. it feels like markets are digesting those election results. david: joe, he predicted she would win and she one. -- won. how are investors reacting? you said the dollar and mexican peso cross as a barometer of this. the peso is not doing well. joe: i think the market today is in a state of panic because of the unknown. who is the unknown is little worse than even bad news. you have a couple of reasons for trepidation. you have 30 days where she can do -- he can do whatever he wants because of control of the congress. she is looking to change the way

judges are selected. they did -- i feel like it was a phony poll where they asked should we change the way it's being elected. the answer was 70% agrees. what they did not say was 80% of the 70% don't understand the question they got asked. last and certainly not least, right now it's a six-year term for somebody to become president. nobody is noticing they changed the law to allow a check at the end of three years so there's a popular vote to say should we have another election now. that is like a hammer that amlo can hold over her head. those are the three things giving the world trepidation right now. katie: those are the risks. you can see that translated into the currency market. as an investor in mexico what do ucs the opportunities when you think about her policy priorities? joe: i'm excited.

i think about business and economics and about security. in all three i am pumped. one is in terms of industrial development, one of the biggest demand needs. the headline i saw on the bloomberg was the power grid will be challenged. that's a challenge we have had throughout the amlo administration, not enough power. she's committed to bring the private sector to serving the power needs and she has one wild commitment. she wants to see 100 industrial parks developed within her first year of the presidency. very pro-business. the second thing is a fellow named garcia. he was her head of security when she was the mayor of mexico city. we saw a lot of issues and the rest of the country. certain parts of the rest of the country. mexico city has been pretty smooth, pretty safe, pretty well run. now she's just nominate him to take the federal role. i think that's a big, big

positive for the market place. and successful, respected from finance, etc. point of view. he will be coming into office and taking that role. i think three very, very big positives. probably the big unknown. he was saying it as i was walking in and it did not to give him my answer. what happens with the relationships with the united states? david: pick up on that. mexico has positioned between united states and china. is that an advantage or is that a risk for her? joe: i think she made one of her priorities keeping a good relationship with the united states. she realizes how important nafta is. yes, while she is the more left-leaning so everybody thinks it's only positive if biden stays in, it's positive both ways. she's got the relationship

there. what everybody's forgetting is marcello cabrard, he was actually the fellow that put the country's greatest award over the head of joshua kushner for making the deal, the new revised nafta deal with the united states of america. she's covering all bets, whether it is a biden presidency or trump residency. she is prepared for the positive and make good. i think this is a bump along the way. it is not the only market we are seeing bumps. take a look at europe. katie: take a look at europe. i'm glad you made the point, whether it is trump or biden that you feel pretty positive on both outcomes here. talk about commercial real estate when it comes to the mexican market. you think about commercial real estate in the u.s. and people are still waiting for another shoe to drop. what does the landscape look like in mexico? joe: a lot of things run in

cycles. the united states certain categories have run hotter over the last decade. europe and mexico have been pretty beaten down. i think the market that will benefit on the way up from global macro conflict with china to be blunt and more positive relationships with the united states. who in the world has become the single biggest beneficiary of a conflict between the west and specifically united states and china? mexico. one of the things you brought up was a great point. who was the most active new business signing leases in mexico? the chinese that are relocating to mexico to get around the issue. with that massive demand for industrial sites and production shifting from china to mexico, that creates positive momentum

for the economy and for the day laborer, but global -- the country's big picture labor markets. that positivity, the more income feeds into the system. i think all the domestic side has been benefiting. that will flow through to the business to business real estate market. look at the other side business to consumer where we are extremely active and probably the most active luxury hotel developer in latin america, specifically mexico. we are seeing the business become tremendously strong from the u.s. and canada and further south. people are loving mexico for their vacation. people like that type of market where you can get away from it all, so to speak. a weak peso will probably make it better for americans to go there. katie: we hope to have you back soon so we can talk about france and what's going on over in

europe. that is joe sitt, thor equities founder and chairman. david, who do we have coming up? david: we will have mary lovely of the peterson institute. she will give us a preview of what to expect out of china and the economy. mary lovely tomorrow on wall street week. katie: our thanks to bloomberg's david westin. this is bloomberg. ♪ ♪ all-day energy starts with clean hydration. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty. if your business needs a new application

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katie: will president biden and former president trump come face-to-face tonight in the first presidential debate. the 90 minute long debate hosted by cnn will mark the first time either candidate has taken to the debate stage since 2020. david gura is in atlanta with a face-off is set to take place. i want to talk about the format.

i find it interesting. no live audience and there is a mute button this time around. how could that change what we are expecting tonight? david: it will last 90 minutes. there is a mute button. each candidate will get two minutes answer a question and a rebuttal, rebuttal to the rebuttal. the moderators have some prerogatives to ask a follow-up question. it has a chance to make it really interesting and away. you look at donald trump, who we know feeds so much off of -- this is a different thing. the way he has prepped is how he has prepared for the last bates is not due mock versions of debates but to do campaign rallies and feet off the crowd. it will be a different environment for them. cnn has really studied how the past two debates with these candidates unfolded. one with chris wallace involved in bickering. he had a difficult time keeping the candidates on the questions he asked. they lost a lot of tape. they will try to do better at

making sure they get some substance out of these candidates. katie: it will be fascinating to see if they are successful. let's talk about the substance. what are we expecting the message, the take to be from tonight? david: both candidates, gets encumbered to talk about their future and the vision they have of the future. donald trump likes to talk what happened four years ago and before that. i anticipate he will be pushed on his vision for the future. how clearly he can articulate that and joe biden can articulate that. there is a dynamic you are hitting on witches how much does substance matter versus style? there are questions about what the candidates will look like individually and on stage together. how they will interact with the moderator. how they address questions about their capacity to return to the white house for another four years. it has to do with age and all sorts of things. we will see how head on address both those things tonight when they debate. katie: how much you debates actually matter? when you think about the polling

now trump leading biden. how much do debates actually move the needle? david: great question. i talked to senator rob portman, former senator of ohio who played the role of republicans and democratic debate preps. he said this debate is catering to about 100,000 people in six or seven states. the sliver of those who have not made up their mind and could be swayed by what happens on the debate stage is small. his counsel to me was watch this debate with them in mind and see how the candidates appeal to them, the slim part of the electorate. katie: good luck tonight. that is david gura. you can tune into bloomberg television and radio. we will have all the buildup and post game analysis and simulcast coverage of the cnn presidential debate tonight. bloomberg's coverage begins at 8:00 p.m. eastern. let's take a look at some of the stocks hitting highs and lows. we start with amazon. hitting a 52-week high after

hitting $2 trillion in market valuation for the first time thanks to the ai fueled rally. it's adding about 1% on the day. let's talk about arista hitting highs after citi raised its price target on the cloud computing company. up about 4.2% today. that is the good news. let's get to really bad news and that's was going on with walgreens. getting a 52 week low and then some after it slashed guidance thanks to awarding -- worsening retail environment. they would close significantly more stores and expect headwinds to persist into the next year. down about 25% right now. a real record wipeout. we will see if that changes as the new ceo's plans start to take hold. it's a pretty quiet day in the market. it probably helps amazon is hitting that 52 week high. coming up, the cfo of block joints bloomberg technology with

caroline hyde and ed ludlow coming up next. that does it for bloomberg markets. i'm katie greifeld and this is bloomberg. ♪ ♪ ♪ well i was raised by careful hands ♪ ♪ yeah, they made me who i am ♪ ♪ so i'm off to see... ♪ we invent them. we design them. we build them. and one day, we have to let them soar. ♪ i'm always coming home ♪

her uncle's unhappy. i'm sensing an we hunderlying issue.oar. 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 her innovation, money and power collide in silicon valley and beyond, this is "bloomberg technology," with caroline hyde and ed ludlow. ♪ caroline: time caroline hyde in new york. ed: i'm ed ludlow and san francisco. "bloomberg technology this is"bloomberg technology." caroline: micron falls as the forecast --full coverage is ahead. ed: