♪ katie: welcome to bloom markets. the stock higher on the day. we're looking at some key central bank decisions across the week and big tech earnings floating through. the s&p 500 rising. big tech also on the rise before those earnings hit the tape

almost .7. and the russell 2000, that rotation trade losing some of its steam. let's take a look at the equity side. tesla shares higher. replacing ford. high profile analyst adam jones maintains the rating high. $310 target on tesla. he said tax cuts helped the company restrict downsides of its e.v. business. mcdonald's shares rising nan what analysts have feared for it weren't it comes amid a decrease

in foot traffic due to the company's higher prices as well as customers increasingly tight budgets. and shares in crypto and company are running into a wall a bit on the day. they were rallying, remember, because of former president trump this weekend announcing expansion into a pro crypto agenda at a major crypto conference in nashville. speaking of that conference, trump had some strong words for current sec chair gary gensler. >> on day one, i will fire gary gensler. i will appoint a new sec chairman who believes that america should build the future, not block the future. upon taking office, i will immediately appoint a bitcoin and crypto advisory council. sonali: as we saw former president trump campaigning more there in nashville, we also know

from the "financial times" and others that kamala harris is also starting to change her tone to the crypto community as well, right? >> yeah, sonali. this underscores that being procrypto might be something that is attractive for both cans dates. making the u.s. the crypto capital of the planet which does represent a bit of an evolution for donald trump. during his first team in office herb suggested that bitcoin was a scam that the value of these tokens were made out of thin air. so this is an about-face. he issue his own n.f.t.'s in the bloomberg terminal. donald trump himself received

donations and even in nashville, he was charging over $800,000 a head to fundraise to take part in his crypto round table. part of this is about the money and trying to make sure it's when niced against his opponent, kamala harris who has been reporting that she's opening up more to crypto. i spoke with riley nicole of north carolina and he said he's been working behind the scenes to encourage her campaign to adopt more friend fully crypto policies. he talked about that reset on stage in nashville. and there's a number of other democrats who are pushing for the policy platform to be more crypto friendly as they don't want to leave candidates vulnerable given the growing influence this industry does seem to be having. sonali: just to go back to one final point here on this idea of a crypto reserve of the united states here. it was only hinted at really in

broad strokes in that trump speech but also, again, brought up through senator lomas introducing a bill. what does this look like? kailey: her bill would create a stockpile that the u.s. would have to hold a bitcoin saying it would be a million bitcoin over five years. and during those two decades, it could be used to reduce the national debt. we saw her putting forward crypto legislation before. and that's really going to a key here because yes, donald trump or kamala harris if they were president, who had the pour to make a decision but actually legitimating, divvying up the authority between the sec and the cftc is going to be an act

of congress. it is worth pointing out that senator of the ag committee has been working on legislation that would give them more power. she was supposed to push forward with that this week before the senate leaves the august recess but pulled it back. it supports the idea that especially considering the house is already home until mid september that any legitimating when it comes to crypto is going to have to wait until after the election. sonali: thank you, kailey, for staying all over it. let's discuss this more with coin share's u.s. head of digital asset steven mclurg. and i want to start with you on that point of a strategic reserve. what would this do and what does it mean for bitcoin at the end of the day? steve: we should have a strategic reserve because globally, many countries have several currencies that they

hold in their strategic reserve and most of it u.s. dollars. and bitcoin has emerged as a global currency for the internet, essentially. so, it's a currency without borders. it's a digital currency. and even though it's not the currency of one single country, it is important as you begin to remit payment all over the world using a common currency that is not controlled by one country. sonali: steve, you think about the current state of affairs in america, there's a lot of concern about the deficit. why would you then spend money on bitcoin? steve: it has to do more with inflation. inflation's been very high for the last five years. the united states, it's been high for decades, actually. but the last five years, it's really crept up. and one of the reasons why inflation is so high is there's not any kind of cap then u.s. dollar. we could just continue to print more and more of it without any concern as to what's backing it up. we broke the gold standard in

the 70's and there is no standard. there is a potential of inflation running out of control. sonali: well, here's another question. should that money being used for the reserve be really limited to the bitcoin that's been seized by the united states or should there be a bigger effort in your mind? steve: yeah, i really do think there should be a program where you're buying not just bitcoin but also continue to buy gold, continue to buy currencies of other country but bitcoin should be a big part of that. also purchasing more. but more importantly, we do need to start paying down our deficit and controlling spending before we can get to a strategic bitcoin reserve we have to address easy to two issues. sonali: let's take a look forward here as well there are aspects of the digital landscape

that were embraced by the former president trump during his speech but there from certain aspects that had a lot more criticism. for example, the idea of a central bank digital currency. this is a massive debate. where do you stand on it? should there or should there not be one? steve: yeah, i'm not actually a really big fan of a central digital currency for a country. i am a bigger fan of currency that's not controlled or inflated by any one country. other countries in the past have let inflation run out of control. and not that the u.s. is -- looks exactly like one of those countries but we have let inflation run out of control over the last five years. and there needs to be some kind of cap whether it's a backing or whether it's just a use of a neutral currency like bitcoin. sonali: so moving forward here, you saw, for example, the

marathon digital announcement about buying new bitcoin. how do you think companies are going to react to what we saw over the weekend, even if it takes a long time for the united states to shift its strategy around bitcoin. you're seeing companies move ahead. do you think they're jumping the gun? steve: no, i don't think they're jump the gun at all. we predicted about three years ago that several countries would begin to hold bitcoin on their balance heat and launch an etf with that theme. very shortly afterwards, we saw tesla, we saw microstrategy and some other companies begin to hold that. the value of holding bitcoin on a company's balance sheet, it makes a lot of sense because it is the currency of the internet, so to speak. but certain companies like marathon or coin base or some other companies that either have transactions or holdings in bitcoin, it makes a lot of since for them to hold a piece that and add a station to that

currency and it makes sense from a practical standpoint. so i don't think they're jump the gun at all but what i do think will happen is that you'll start seeing other auto companies outside of ted ginn to hold bitcoin and accept bitcoin for their cars and other large purchases. sonali: thank you for your time, steven mclurg. it is the biggest week of the year for earnings with $27 trillion worth of companies worldwide. we are going to talk about what to expect next. this is bloomberg. this is bloomberg. ♪ recipes written by hand and lost to time. are now being analyzed and restored using the power of dell ai. ♪

♪ >> from the brt of global finance, economics and politics, and wherever --

sonali: time now for the stock of the hour. we're watching four of the magnificent 7 reporting earnings the company is worth some $10 trillion are under pressure as the market broadens out from the world's largest tech. we're going to discuss this with dan flax, and you think about just how much money these mag-7 names have brought in the last couple of years where the valuation stands today and how sensitive they are you saw how alphabet reacted just last week. how do you feel about where we stand right now and what has the most potential for upside? dan: we're at a very interesting period the technology space. you're seeing continued buildout of the cloud and the artificial intelligence structure. i'm excited about what i think will see how far microsoft.

i think their earnings will be healthy and amazon as well. the amazon web services cloud business. you'll see good growth and that coupled with what we saw last week from google cloud demonstrates that really this buildout of the digital infrastructure remains healthy. we will get an update from meta on digital advertising which remains healthy. the longer trends around cloud, a.i., mobile remains intact and healthy. sonali: how do you think investors are we calibrating expectations about cap spending hoar? when it comes to a.i., and how much patience investors have to see that money create a return quickly. do you think investors are becoming less patient? dan: i think investors want to see growth. if you look at google last week, they've indicated they're spending aggressively on their

technical infrastructure. i think that's the right strategy for them as well as microsoft, amazon as well. given that their cloud businesses in the case of amazon, it's over $100 billion of revenue. so they need to invest and where there is excess capacity, google, for example, they're investing in their search business. they have other revenue drivers, amazon has the same as does microsoft to absorb it. some of what we're seal is -- we'll see is the community wants to see the new revenue streams you're seeing early signs of that but that is going to take time. so the key is to invest on one hand and to play offense and of course, navigate the near-term cyclical headwinds, be thoughtful on costs. sonali: with a do youthink about other parts on the capital stack here or the technology stack? what are your expectations from

them given how much you see the stock fall off this year already? dan: intel c.e.o. is undergoing a multi-year transition as they invested aggressively in the business. part of their business which are exposed to the enterprise for example, have seen some softness along with other companies exposed to the enterprise. but as you see progress on inventories, you should see better demand in p.c.'s. perhaps helped by a.i. over the next several months. intel and others, like advanced microdevices as well. so the schmucker company, qualcomm is another one. we'll see their results midweek. the businesses are cyclical but those companies and i'll mention qualcomm, think about factories and farms.

i think it will emerge stronger from this period. sonali: how do you play the chip at this point in time foo you've seen a major run-up in valuations you think about the nvidia boom. nvidia up 130% this year. and you see part of that broadening. the market broadening story not really just meaning big tech to small cap, right? you see it mean people are trying to find new ways into the a.i. story. how do you get into that narrative? dan: we look at it from a variety of perspectives. you mention nvidia we continue to like that name and it's not just the chips. it's really the software the millions of developers on their platform and a vibrant ecosystem as well as continued execution on their road map. but a lot of companies we talked about the cloud companies. they're big customers of nvidia. but they're continuing to

innovate and invest in their own road map as well. we like companies that make the systems and in this case that, are really foundational to developing the newest and next generation of chips. and so we look at it from an equipment standpoint. we look at it from an r&d and a design standpoint. we talked again about the cloud companies that can harness this and drive incremental revenue streams over the next one to two years. and the incremental revenue streams and the opportunities in the second half of the decade will be significant as we look out. sonali: you look at the geopolitical rhetoric and the tone you're getting not just from the republican side of the presidential elections here. former president trump really coming out with a tough on china, tough tariff policy being proposessed but the biden administration equally coming

out with tough policies around china. what does this mean for any u.s. investor invested the schmucker -- semiconductor and chips industry if. dan: both have been aggressive in terms of the u.s. policy towards china. i would expect that to be conning for the foreseeable future the companies themselves, they really need to innovate, invest aggressively, manage costs as well and deliver value their customers. and so, it will matter most in my view their innovation. and of course, globally, off variety of different administrations in europe, china remains very important. and so, i expect this conned bifurcation of the supply chains but the companies particularly the global ones have to be able and a half it, innovate and respond when things come up.

but if they can't innovate, then, and they can't grow, no matter who is the white house, that will be a difficult for them. for those who can grow, they'll be able to flourish even what it remains to a very difficult geopolitical environment. sonali: dan, we thank you for joining us today. the start of a very, very busy week for tech investors. that is dan flax, senior analyst for neuberger berman. we're watching shares of end star group. details on that next. this is bloomberg. ♪ ♪

sonali: an investor group led by sixth street is agreeing to buy proper ensure enstar group and it is set to be in the second largest privatity backed insurance deal of the year. they are on pace for their biggest drop in more than four

years. joining us now for on on this is matthew monks. you look at what's going on here, steve mnuchin, this does not look like a man that is about to regin a potential trump administration in the future. matthew: i couldn't agree more. he's been sniffing around tiktok. he's finding ways to put money to work. sonali: what is group if you have sixth street, jc flowers, a stock that is dropping. what are the uncertainties around this deal? matthew: first of all, they're paying $338 per share in cash which is less than where the stock was trading on friday. so it's something of a take-under. so investors are responding to that. sonali: they want more. matthew: there's a little bit of a hint there where the c.e.o. says this provides a liquidity

event and the stockholders in the stone point owns big slug of it still. so it's an opportunity for the private equity firms to get out. and stone point is staying in. they're going to provide some financing. sonali: it's like an exit of an asset as well as a takeover containment. matthew: that's right. and flowers knows this company. so it looks like some really smart fans finance year -- err types. sonali: absolutely, it's super interesting deal here with flowers, like old school financial names that we're looking at here. bloomberg's matthew monks, thank you for your time. before we let you go also taking the check the markets. we are on an update here as we've been talking about as well. on a day before earnings season at the calm before the storm. we're looking at s&p 500 higher

by about .5. and big tech names higher than that. we're looking at rest of the markets here pretty much unchanged. we're looking at the russell 2000 not much movement there. but on the lower side. so the rotation change hitting a wall. i'm sonali basak. that does it for "bloomberg markets." and this is bloomberg. ♪ 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. ryan t. writes, "moving is stressful. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet. this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app.

bring on the good stuff.

>> this is "balance of power."

live from washington, d.c. joe: joe biden calls for term limits on the supreme court. welcome to the fastest show in politics. i'm joe mathieu alongside kailey leinz in washington. nice to see you back here today in the capital. we are going to hear from the president later on today from texas as kamala harris spends time counting money after a historic round of fundraising. kailey: it has been just over one week since kamala harris officially launched her own provincial campaign, and already that campaign has raised over $200 million. perhaps even more astounding than that figure is that 66% of those donors were giving money for the first time this cycle. speaks to the amount of energy her candidacy has inspired. joe: