>> i am jon erlichman and welcome to bloomberg markets. kriti: this is interesting because the assumption here was perhaps the conversation will be a game changer but instead asking more about how much more hawkish some of the federal reserve speakers will get and it looks like in anticipation of the hub commission is what is driving the market's down. the s&p is lower even though we have positive movers to the

upside stop the bond market, it is seeing a little bit, down two basis points. are we waiting for a larger catalyst? that is the question we will explore and the dollar not doing a whole lot and falling the queue of the bond market when it comes to interest rate differentials. it is brent crude that has the story. do we see that march to 100? jon: on the mover list, we have a couple of and couple down and let's go through these individual stories. cbs --cvs sales getting to the finish line in the big move to americare being well received and the shares are up 4.5% and foxes up with their numbers and the profit pictures, the shareholder goodies encouraging investors and head of their big podcast.

joe pauley -- joe paul lake with less than desirable --chipotle less -- with left -- less than desirable shares. there was a lot of bets on big ai and the update this week, some concerns over alphabet's chatbots accuracy has been weighing on that stock and a reminder on how pai -- the ai conversation has been. kriti: investors digesting all those comments we have heard over the past 24 hours and looking on clues on rates and where they will go. the bank of canada or -- director says -- spoke. >> you probably don't need to raise rates further if inflation

is more stubborn and if it doesn't come down, we are prepared to raise rates further. it makes sense to take a pause to manage the risks of under tightening versus over tightening. jon: we are getting minutes from the most recent bank of canada interest rate decision, and we are talking about the u.s. federal reserve as -- and the minutes as we review what -- we have not yet before has this kind of transparency but it is the kind of transparency of the bank of canada was seeking to add to the table especially at a time when you have these moving parts on the inflation front. what we have learned is that there was a debate playing out and the bank of canada officials debating whether they will ultimately hold or hike.

the bank of canada liked the fed -- bank of canada, like the fed, raised rates but they had -- the former fed official talking with us on this program yesterday and arguing the fed should consider incorporating that into the fed playbook. looking at detail here, government tiff macklem and other policy makers discussing whether to maintain a data-dependent hiking bias or communicate their intent to hold arming costs after deciding to raise by another 25 basis points. i want to walk you through here. this is a first-time we have this kind of release, members were in body agreement that going forward, it would be appropriate to pause any additional setting to allow economic developments to unfold and that was similar to the

language we were hearing from tiff macklem. i want to bring in derek two it --decluit. is the first time we had this kind of disclosure but it gives us more insight into the thinking at this later stage at the hiking cycle. >> that is right and the hike or holding suggest that there is some debate about whether the bank of canada has gone far enough and the other side of it as they discussed whether or not sure we maintain a hiking bias and not indicate to the market that we are thinking about pausing and what they did was hike and said we will stop here and in quebec city, they reiterated that that is where they are and they need to spend time assessing how this will play out in the broader economy.

what kind of damage rate hikes have already done. kriti: it is important to note that the bank of canada hike rates before the federal reserve did and i think we follow the bank of england when they were starting their dining regime. -- tightening regime. what kind of president does this set for the months we see ahead? derek: tiff macklem has indicated, although he has been early to rate hikes and they are -- pausing before that -- the fed. canada's economy is different. the fed will carve its own path and canada has a more interest sensitive economy -- a lot of mortgage debt. canada is something of a bellwether for those kinds of economies that have had housing bubbles or richly valued housing

markets and how they respond to that big increase in borrowing costs. kriti: derek decloet, we thank you as always and we are seeing the bank of canada released the minutes. joining us now for a broader view is -- and we got dictate from canada and let's bring it to the stake -- to the states. we will bring in amy wu silverman. we keep talking about all the volatility brought on by fed speakers and i am looking at a fixed with 18 handles. what is going on? amy: i know and i think it belies what is going on beneath the surface. the options market has been rambunctious, especially since the past week, there has been historic levels of calm -- call buying, short-term particularly

in big cap tech but there is a debate about whether we will see these rate cuts. this is where you are seeing skew elevated. -- elevate. that is inflicting directly -- inflecting dramatically. jon: tom: --every jon: --jon: if we were to bring this together, there is more hedging on downside risk for tech after this big run-up we saw at the beginning of the year? amy: yes and here's how i would characterize this. comes down to positioning and one thing i said in the volatility outlook for 2023 is investors came to this year under invested and focused on up crash and you seasonally you see folks buy back the losers of the previously. -- in the previous year. and some of the chase to

participate in the upside is coming into the short-term call buying the longer-term. the sanguine view of that is that there is simply more market participating -- participation. that is the debate, that we seen only from the fed but from the options market. kriti: how do you play that story? and feels like we are in the holding pattern from the fed and what you are seeing in the bond market, the 10-year yield is trading a little in the range but in the equity market, what is the trade? amy: one trade we like -- this is really stunning. i was looking at tessa options prior to coming on and it's skew is near a five-year high. the demand for -- it has reached that exuberance we saw during the pandemic. if you look at a lot of names

that are lower quality, like negative three castro -- low -- cash flow, those are the winners and the options on the calling or more exuberant. the question is does that make sense and if it doesn't, folks who participated in the rally, they can replace those with call spreads. it is a little bit of jargon but what i am saying is that you can sell those exuberant call wings if you think, we are not in a environment where that makes much sense as when rates -- were at zero. jon: had a conversation earlier but long-time strategist talked about stories being a fema 2023 and we had seen of the last couple years a lot of story driven stop -- stock trading but ar is a great example. we talked about how there was a

dramatic reaction to updates on what is going on with google's continue push into ai and chatbots. how does that, kate the -- complicate the positioning, not just earnings but the big story with ai? amy: part of the story is quite real and that is how it starts with something like take so there is a meaningful paradigm shift. i use chatgpt and it will change the way things are. the question is how much further in the future. someone joked with me that it kind of feels like ai and chatgpt, anything touching ai feels a little crypto 2.0. the thing when you say it is related to that, we see the momentum trading going on. doesn't make sense in a fundamental sense -- does it

make sense in a fundamental sense? i think we are ahead of ourselves which is why i think the sentiment long-term is saying something different than short-term and that is where is selling you, we have a lot of uncertainty in terms of where inflation can go and that is why those option prices on the downside pickup longer-term but you do not see near-term. kriti: amy wu silverman, we thank you as always for your time and insight and over hosting strong revenue numbers and the stocks soaring on the news, heading the highest level since april. we will dive into the details next. this is bloomberg.

three nights, esg... the broker will take your bonds. -diversification, futures, options. fiduciary. leverage. [whispering] -frothy markets. psst. virtual real estate is a lock. ♪ cold hard cash ♪ j.p. morgan wealth management knows the world is full of financial noise. i'm looking at your asset mix and plan. you are right on track. great, thanks. our easy-to-use app and local advisors are here to help you figure out what's right for your investments. j.p. morgan wealth management.

kriti: this is more markets. uber reporting strong revenue that beat expectations and the ceo credited consumer resilience for the strong numbers. take a listen. >> but we are seeing is while there has been a downturn with companies being more conservative in terms of their spend, the consumer is saying strong and consumers spending is strong and we are benefiting from a shift of consumer spend from retail buying stuff from your home, to spend on services. kriti: here with us for more analysis is mandeep singh. huber has a lot of different segments, their mobility business and delivery business. with airfreight business, it is the fastest-growing and up by 32% and does that create a incentive to dive more into freight? mandeep: rate is the most

standalone right now and you can see the synergy between mobility and delivery and over launch a subscription workday grew fair -- their subscriber base. you don't want to use five different apps were delivering groceries, food -- for delivering groceries and food and the print is now they don't have to spend on acquiring more drivers or spending on supply and it is all organic and the competitors and left is re-tenting in circuit -- certain markets. hinton uber -- uber -- uber is spending more in the markets. jon: may be can dig deeper into the lyft --

mandeep: given what we are seeing and you can apply the same logic on the food delivery side if uber is gaining share from doordash or instacart. i go back to my comment on supply because in a marketplace, if you have to spend on acquiring supply, which all these companies were doing. they have to give out incentives to add more drivers. you have -- don't have to do that anymore at least with uber and that is driving the volume and recurring nature force description revenue and that is the volume proposition. the moment uber is thinking about adding more costs or to maintain the etas, that is when it gets problematic and it looks like they have solved that. jon: we are seeing that reflection in the stock.

mandeep singh of the bloomberg intelligence team with the latest on uber. disney reporting after the bell tonight and it is the first earning since bob iger returned to the ceo job and we will get a breakdown on what to expect. this is bloomberg. ♪ ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh what will you do? will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you.

jon: this is bloomberg markets. later, we will follow the numbers from dizzy -- disney, the first set of financial results since the return of ceo bob iger and the first earnings since the start of the proxy fight. let's get a preview now and joining us from los angeles, lumbers chris, neri -- bloomberg's chris -- and ed ludlow.

we saw the ceo switch, it came after a cap -- challenging quarter when he saw big costs on the streaming business. ed: there is a one point. -- there's a $1.5 billion loss on the direct consumer on the streaming business. this time around, you are paying attention to the financials and topline growth is going to single digits and the narrative around the pace at which the losses in the direct consumer business narrows. subscriber growth at disney+ has slowed down. what we want to know is longer-term. bloomberg intelligence made the point that disney set fiscal 24 targets for profitability on the streaming business as well as subscriber growth targets and what they are looking for in the context of what is happening is a long-term visit -- vision.

kriti: is not just the streaming story and there is a medium -- and the media business and there are things when it comes to parks and 36% of the revenue coming from that part of the business. what we watch for their? chris: the parks have been on fire and part of that is bob chapek raise prices and introduced a cut in line system where you pay 20 box to get in -- $20 to get into the line and that has boosted process -- profits and we will look to see if that continues but investors want to see what bob iger's big picture plan is and he has suggested there will be a reorganization company -- coming. he suggested there will be cost cuts but there is a re-think of how they will organize and we will look to see what

indications he gives. jon: certainly, bob iger is known for getting a few tidbits with quarterly earnings and it will be interesting to see if he says anything about the bloomberg scoop about the idea of offsetting streaming costs by finding some outside licensors for content. ed: there is a number of checklist items or unknowns the market wants to hear. one is the situation with hulu and comcast' stakes. his reputation is now signs about fiscal prudence while they look for a successor and you can get away from -- cannot get away from pelts. they have to convince investors because there is no point of pelts being added to the board. disney's .2 investor is that the

pants -- the post don't have any competency but bob iger does. we don't have a sense of his plan. the main message is revising the profit deadlines or profit deadlines. maybe reduce expectation but give us detail about how we get to that point and what cuts need to be made in order to achieve it. kriti: in a last-minute or so, what can we expect to hear on the same front that ed was talking about. what kind of delegates could we see nelson peltz go after? chris: he has gone after them with a stop price performance. it was terrible last year and in the past, the company disappointed on losses are tickly in the direct to consumer business so those are the things and compensation. disney continues to pay its

leaders and former leaders considerably well. the interesting story has been watching bob iger undo some of the things bob chapek did. i mentioned that people feel like they are being nickel and dime at the parks. he has hinted at this larger regurgitation of the management structure so he is setting himself from his -- apartment his predecessor -- setting himself apart from his predecessor. kriti: earnings coming after the bell and looking at disney shares that are flat on the session and it will be interesting to see how volatile he's -- volatile moves after the market. we thank you as always. it is covering the gamut on the disney side and the nelson

peltz saga. the s&p 500 down 1% on the day and the nasdaq 1.5% and the bond market, three -- 3.64 on the -- stay with us. this is bloomberg.

romaine: inflation is back. stocks drifting lower and inflation expectations drifting higher. the main bostick alongside scarlet fu. -- romaine bostick alongside scarlet fu. scarlet: this is the fed speakers are remarkably consistent about their message. inflation is an issue and the path of rates is h