scarlett: welcome to "bloomberg markets." if you look at the big cap socks, the s&p 500 was higher for a second day, but the gains have started to fade and the nasdaq 100 is in decline mode before two of them, with magnificent seven names reporting, tesla and alphabet this afternoon. small caps holding up well, clinging onto a gain of .8% showing momentum behind the rotation trade.

treasuries are higher across the curve. the two-year yield is coming down by two points or so, pushing points lower before the $69 billion auction of two-year notes in 30 minutes. let's highlight individual movers for you. ups fall in the most ever after a lower-than-expected profit last quarter. the package delivery company suffering from wage inflation and weakening demand following a pandemic driven boom in e-commerce delivery. while profit fell, their volume grew for the first time in nine quarters. spotify, rallying as much as 16% , reporter -- reporting ordered quarterly growth topping analyst estimates after moose to cut costs, reduce the workforce, and pull back on pot -- pull back on podcast production. the sec approved the first ether etf's investing directly in ether -- first etfs investing directly in ether, highlighting

a relaxing of the regulatory climate for the digital assets sector. let's explore that more as these new products begin trading today. it provides data to six out of 11 ether etf applicants. good to speak with you, thank you for joining us again. from where i si like there was a lot less regulatory drama surrounding the approval of these. do you see it as well? >> thank you very much for having me. i would agree that there is less drama, certainly less covered by the media in the lead up to the launch. that's in large part because we had the, you know, the bar that the sec had set with bitcoin launch that had become very clear, and it was clear that ether had crossed the bar, as we demonstrated in our letter to

the sec, which they quoted extensively in their approval order. scarlet: let's talk about demand in the near term and down the road. who do you see driving up demand in the first few days of trading ? we mentioned the spot bitcoin, i would have thought that the crypto curious were fulfilled after the launch of those products. >> that's a very good point. so, i think initially you tend to see self-directed accounts, individual investors investing into them. from the flow that we have seen in that first half day of trading, an excess of half of a million dollars across the instruments, that's pretty strong, every single one, everyone having beaten the average volume on the first day already. now, in terms of the curious, i would say that yes, you would have thought that their appetite

would be sated by the launch of bitcoin, but you have got to remember that ether is fundamentally a different asset. to bitcoin, it is an industrial asset. it is the native currency of the world's largest smart contract enabled degenerating decentralized blockchain platform that we have seen major corporations already hosting applications on and holding it to pay the guest fees to pay it to operate on the network. scarlet: so there are people or institutions that have direct exposure. what is the benefit to owning it in a rapper rather than in the underlying asset, which includes staking? >> that's a good question, the staking issue has been on the mind of everyone.

let's just -- let's just step back and think about what difference the staking actually makes. right now, the cfe can reward rates, benchmark rates for tracking rewards, it is tracking around 3%. now, this is an asset the trades with volatility in excess of 100, so the 3% reward is a bit of a rounding error, really. we don't think it will impact the flow very much initially, but that is not to say it isn't an important feature for holding it. so, we anticipate that it in time will allow these products and future products to stake it. scarlet: ok, something to look ahead to. the political climate, i know the crypto industry is very

excited about a second possible trump term because of the former president's support for crypto. is this justified? are you optimistic? what would you specifically be looking for in a more crypto friendly president? >> the way i see it from across the pond is it isn't so much each candidate, but the most important sea change we have seen is that crypto is on the agenda of political candidates, political candidates need to have a view on it, and increasingly the view, whether it be from the democratic side or the republican side, is that it is a progressive force for innovation and potential economic growth generation. i think that that is the most important change we will see, regardless of who wins. i think that that will become the mood music around it going

forward from the political classes. scarlet: appreciate your view there from across the pond. thank you so much for joining us . we mentioned politics, of course, so let's keep an eye on the developments in washington. ronald rowe has been named the acting director of the secret service after kimberly stepped down, taking responsibility for the security failures at the rally were trump was shot. mike, of course kimberly cheadle was in the hot seat yesterday, testifying before the house oversight committee. kind of surprising that she took this long to step down given the calls for her to step down yesterday from both sides of the aisle. >> based on what we saw yesterday, she wanted to present her view and her version of events before making a decision about whether she would stay at the agency. as was raised during the hearing, her departure was

written in the stars. after the 1981 attempted assassination of reagan, the director of the secret service resigned. that's the kind of reminder to her of the steaks and a reminder to all of us that the stakes in the shooting of donald trump and three rally-goer's sands has the biggest security since the attempt on his life more than 40 years ago. scarlet: what is the next step for her replacement? my understanding is that these were presidential appointments. matt: that's -- mike: that's right. rowe is inheriting an agency in turmoil following the attempt on trump's life and all of the scrutiny that will come. there are multiple investigations underway now,

from congress and in both chambers by the agency itself, with a broader inquiry that joe biden has called for as well. there will need to be immediate measures to make sure that candidates, including former president trump and vice president harris have adequate protection as they are out on the campaign trail. but then there will be a deeper look at the agency mission and the degree to which it is coordinating with local law enforcement agencies on big events. scarlet: a deeper look into the mission with pragmatic questions over funding. is this going to jeopardize federal funding for the secret service? mike: if anything, inquiries may expose the perhaps the agency hadn't received the support from the federal budget that it needed to be able to fulfill its mission. that will be one of the things we see play out. it is a bipartisan issue. we saw the republicans and democrats really laying into

cheadle yesterday. it was a bipartisan way of calling for her to resign and demanding answers about the failures. this is not just about donald trump, it's about any national level public figure receiving protection from the agency who may be subject to some sort of lapse if the agency isn't doing its job or receiving adequate funding. scarlet: what struck me and her testimony is that she was not able to answer a lot of specific questions. she came off as evasive. is that simply because she didn't know the answers or was it a matter of national security that she couldn't disclose that in a public hearing? mike: it might have been a little bit of both in that struck a lot of us watching the hearing, we wanted more information on key details, including how the shooter was able to climb on the roof from where he fired the shots that injure the president, killed a rally-goer, and injured two

others at the event. other questions as well about if people were aware of his presence on the roof, why did law enforcement not act, including secret service, not act more quickly to shut down the rally, protect the president , or intervene in some fashion more quickly? scarlet: definitely reinforces this idea that the secret service is reactive rather than proactive. mike sheppard, giving us more contacts there on kimberly cheadle resigning following the assassination attempt on donald trump last weekend. coming up, coca-cola raises prices and it's for your outlook. we have details on how inflation is affecting its business. this is bloomberg. ♪

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scarlet: this is "bloomberg markets," i'm scarlet fu. coca-cola, second-quarter earnings beat analyst estimates this morning, boosting a full year outlook as they continue to raise prices worldwide with drinks costing 11% more in north america this year. the stock is up by .8 percent. looking at it in a year to date basis, it's 11% gain. lauren lieberman joints me with more. good to speak with you. thanks for joining us. higher prices help to boost resident -- revenue. which products, the sports drinks,'s fruit juices, bottled water, of course soda, do they have the most pricing power? lauren: generally the most pricing power on soft drinks, as you might expect, but of the big

benefit the company showed on a company level, a good chunk of that was because of pricing and hyper-inflationary markets. even when you look down at the north america level,, it's a portfolio mix. like their life grew faster. influencing the balance. answering, it's soft drinks. scarlet: at what point do consumers get fatigued by that? we have seen a lot of prices go up and at some point people just rebel and don't buy soft drinks. non-essential. lauren: it's something that the company is aware of. it's harder to bring someone back into soft drinks so we would rather invest now to make sure they don't lose them. scarlet: coke is doing this at both ends with refillable packages that are more affordable to the consumer and at the high end, there are a lot

of people that want to buy kirby little bottles of glass coke to serve at a dinner party. they play both sides of that. the usc study fatigued low income consumers. lauren: how much has it tapped out, yes. can compared with pepsico, it had weaker than expected -- weaker than inspected -- expected revenue growth. scarlet: what is coca-cola doing better than pepsi when it comes to beverage businesses? lauren: coca-cola has made coke cool again, that's the candid way of saying it. all of the investments being made in the brand, coke zero, leading the market, bottles and small cans, things like that investing in the brand. aligning with music, other

brands, pepsi hasn't done the same thing in terms of success, comparing the two. that's interesting, you say that coca-cola is a big sponsor of the liv-ex. how does that show up in the financials. on the costs side it does as well. are we going to see a big bump up in costs for this quarter? direct marketing expenses were up in the mid teens, similar to the run rate on sales growth. it's amazing, they had good operating measures with that market. year in, you're out, coke is spending an elevated level. in terms of when it shows up that's the absolute level. it's always a something. always something to get behind in the summer. coca-cola, truly a global

company. it only gets 37% of revenue from north america. how much is the headwind as it relies on so much sales from overseas? a lot. it hurts a lot. earnings guidance, 5% to 6% reported eps growth. it's 13% to 15% currency neutral . fx takes a big bite out of profitability for coca-cola. going forward what to do investors want to hear? lauren: people want staples for safety for defensive especially now with more interest coming into the group. predictability starts with topline growth, continued strong and steady balance between volume and price mix revenue. that's the key, it's the global growth story. scarlet: and the dividend payout? lauren: you are right, has a given. scarlet: in terms of the

universe of companies that you cover, things like kimberly-clark, procter & gamble, where does coca-cola stand out in your universe in terms of management and execution? lauren: high on the list. i find their system fascinating. it took me a bit to get my head around the idea of marketing at the local level. that separation of the two functions, more than two functions, but the two functions, if you will, allows for the execution and granularity that is unparalleled. when you think about their ability to react out -- you have different market conditions can react to consumer by postcode, it's that granular. coke is the only one that can do it. scarlet: an interesting model for other companies if they have the scale to be able to achieve that. lauren lieberman, thank you for joining us.

she has an overweight rating on the stock. coming up, with turns down $23 billion from google and we have more on the momentum that we are seeing from the initial public offerings. this is bloomberg. ♪ y folks, chris counahan here with leaffilter, america's largest gutter and gutter protection company. leaffilter has over 150 locations and has been installed on over a million homes. we've been protecting homes now for over 20 years. our patented technology offers total protection for your home and comes with a lifetime transferable warranty.

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scarlet: this is "bloomberg markets," in the u.s. ipo market is heating up with up to $5.5 billion in first on equity issue this week, the busiest week for ipo's since last fall. this comes as wiz, cybersecurity sort of, turned all over us turned down a $23 million takeover bid from google . that's surprising because $23 billion from alphabet is a clean exit for that company. >> almost double their last valuation. but it seems like when you look

through the statement from the ceo to the employees, the focus is on growing the business. we have seen them growing -- going out and wanting to get billions on revenue and with eyes set for the ipo. scarlet: let's talk about that ideal market. not long ago it felt like companies were holding back on listing. stubhub said they would be waiting until the fall. before that, golden goose, mainly in italy, holding off because of uncertain market conditions and we could tie that to europe , but what iswiz -- but what is wiz seeing that others don't? >> growing organically and in organically, what you read through those tea leaves and the reporting that we have out there at bluebird and at some of our competitors, their eyes are on something further out. not 2024 window.

looking at 27 if you assume they want to get past $1 billion. the big thing that is when i talked to bankers and advisors, expectations are for 2025 to video that everyone thought 2024 would be. getting out in the fall will give them more time for the markets to heal overall with highly anticipated rate cuts playing out. scarlet: yeah, you can see how things have dropped off before the pandemic. there was the outlier in then everything else that paled in comparison. what are we anticipating in terms of big ipo's for the rest of the year and i wonder if the political calendar could ship that up with people anticipating volatility tied to the market or a series of rate cuts? >> the election makes it a little tighter. in july we will have a busier week with the largest ipo of the

u.s. with expectations in september being more optimistic on the deals getting done and a big question around how closely you want to play it to the election and does the market get tighter in the middle of october and then you have a narrow december window when you have a later than normal thanksgiving and you try to balance those december holidays? it seems like some companies are altogether focusing on 2025, which is not what we were expecting coming into the year. but they do see some pleasant surprises, although they haven't said what so far and at the end of the day it feels like we are three months away from the reopening of the ipo market for two years. scarlet: i feel like you have this conversation with him regularly. pe firms want to create a profitable regulation for themselves. >> yes, venture capitalists want to be able to monetize those assets and we will keep our eye on that.

that one will be a barometer of tech sentiment. scarlet: i'm scarlet fu and that does it for us this afternoon. 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. the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. >> well, that was fast. welcome to "balance of power," on bloomberg tv and radio, i'm kailey leinz so low in washington on this tuesday, where we are 48 hours out from president biden dropping out of his reelection race in the vice president kamala harris has secured enough pledges to make her the presumptive nominee as she campaigns in milwaukee, wisconsin today. in a few minutes we are expecting her to receive a joint endorsement from the democratic leaders of congress, hakeem jeffries and chuck schumer, expected to give the endorsement in just minutes. we will bring that to you when we get it. we have a lot to cover but first as always, let's bring you more on the markets from chip -- from charlie pellett.