john: welcome to first word news. president vladimir putin told his belarusian counterpart that russia will move tactical weapons to belarus next month. former president trump is indicted on seven counts in the investigation related to his handling of classified documents marking the first time in former president has been charged with a federal crime. it includes conspiracy to obstruct justice and making false statements but he maintained his innocence. >> its alexion interference at

the highest level.there's never. been anything like what happened i'm an innocent man, i'm an innocent person. john the indictment: document is expected to be unsealed today and trump is expected to appear at a federal courthouse next tuesday. the u.s. expend a ban on imports from the a chinese region lacing two more companies on its entity list and 22 conveys are on that list in the u.s. department of homeland security is lauded that took effect aims to protect uighurs and other minorities from forced labor. global news powered by more than 2700 journalists and analysts in over 120 countries, this is bloomberg. ♪ ♪ ♪ jon: welcome to bloomberg markets. matt: let's take a quick look at what's going on in the markets.

at one point, we had hit a 52 week high on the s&p 500. we are not far away from that now. if we get to 4305.2 by the close, that's a one-year year high on the s&p 500. we're looking at a 10 year yield at 373 which is basically in the range we been trading since the middle of may. the bloomberg dollar index is barely changed. nymex crude is off another $.50 per barrel. if you look at that chart over the last year, it just gets lower and lower and you can understand why the saudi's are giving us surprised supply cuts. jon: 2022 was the year for energy stocks less so for tech in 2023, the exact opposite. we continue to see excitement in tesla shares, 11 days of gains for the electric vehicle maker. gm is going for the ride today after that new partnership between the companies. they will test their charging

network following in the for decision a couple of weeks ago. we will have more on that with an industry analyst coming up and staying with technology, we been watching the ai boom this year. investors are pretty darn excited about how adobe fits into that picture. wall street analysts have said wells fargo with a bullish commentary today ahead of the company's earnings next week on how that company is incorporating some of the ai technology into itssuite matt: ai in the stock market is the focus for this year. this week, we heard voices at bloomberg invest come a conference we are holding here and that super return in berlin discussing its potential. >> it is clear that we are at the beginning of a megacycle in spending in ai. the real beneficiary is the applications for certain companies and infrastructure. its cloud i'm high chip

companies. >> on the efficiency side, we believe that by implementing ai, we will be able to increase the margins on which we run our companies by 10 percentage points in general. for every threat we see you can deal with, we see about 10 times the number of opportunities. >> there's plenty of innovation is says there is a norms opportunity to have another industrial revolution that might be more of a digital revolution or science revolution and that could unleash productivity but we need something to get more growth in the economy. jon: tying it back to the market, we were talking about how adobe shares are moving higher after that bullish call from wells fargo tied to the ai opportunity. ai is likely to play a role in media as well. caroline hyde is joining us as well as paul sweeney to talk more about the ai boom. the three words that stand out

in those clips is megacycle, efficiency, opportunity in a year were there were supposed to be so much uncertainty and everybody plowing into these names. caroline: it's a silver lining we all needed in a doom environment. bloomberg intelligence put a $1.3 trillion opportunity from generative ai by 23rd -- by 2030. key players of one out like nvidia which was the big one. what's interesting is how expensive this is for some companies to run. adobe is getting that lift overweight. the generative ai tools are really managing to move customers as they are a safe way of using it and they say we will give you legal protection to get rid of the watermark to ensure anyone files for copyright concerns, we got your back. adobe is not really worked out how to charge for these tools. a lot of it is pretty expensive.

that's why you are seeing a lot of these text to image generators you see on your screen starting to have two make you pay. you cannot just experiment with this for free and adobe will be a test as to how much you generate and each customer will be different. they do enjoy that everyone wants these generative ai products. matt: there is an industry group in the s&p called communication services. it doesn't make sense but for you, it was a focus for much of your career on wall street. today we see in that group, netflix rising on a surprise in terms of additions? paul: they are cracking down on this password sharing which is a big deal and it could be 100 million accounts that are sharing and you convert some of those that are sharing and you will get some of this some of the sweeney offspring sharing my account, that could be a big source of new subscribers.

over the past few days, they added 70,000 subscribers on average per day which is huge. that is all incremental revenue for them and that's big for this company because their subscriber growth which had been driving the growth of the company was played out in many parts of the world. jon: all of these technology companies whether it's netflix with a password crackdown or a lot of cost-cutting measures from many companies you cover in bloomberg technology, i would imagine this internally can influence culture and the mood. stockmarkets mood has been euphoric but how are these companies navigating this new landscape of doing wall street pleasing things more often? caroline: such a good point and i think morale has taken a hit particularly when you have the ongoing cuts when it comes to personnel, you've got meta-which is reporting a damage to morale.

now companies have got to be focused on how you can perhaps introduce new generative ai product without making everyone in hr worry about their jobs. 7800 jobs are likely to be affected by curtailing personnel because they will have generative ai fueling their productivity. they've got to get out there and chief officers need to talk about the ability to superpower you and stop doing the mundane work. netflix has had to take a hit to people. most companies have, hundreds of thousands of jobs are going to technology but it hasn't really been born out in the labor numbers. matt: in terms of cost-cutting, the companies you cover can just let go 10,000 people, right come

in terms of the social media companies and the software companies but in terms of netflix where they create content, cost-cutting is much more difficult. paul: and it focuses on programming. these come is are spending $20 billion per year in programming. just 315 years ago in cvs or an hbo can spend $1 billion. the cost of programming in the amount of money has gone through the roof. for a lot of players that will be unsustainable. caroline: this brings us back to ai. netflix is privy to the writers strike going on at the moment. some content producers are saying it's kind of nice at the moment that cannot buy new content but the writers are worried about artificial intelligence and how much it will affect their future work and how they are paid for it. matt: it goes back to a debate

we had that some people think 90% of the content on the internet will be generated by ai in a few years. i will take the other side of that that but i recognize that is a hot take. jon: if it is, i don't know, something in the thriller category will be created out of my brain. it makes my brain explode. thank you so much for your perspective. it was a helpful conversation. caroline: just don't get on my netflix. m wow. jon: that would be very scary. a lot more to watch and technology as well today including with tesla. we talked about the company standing to gain billions as rivals adopt its fast charging network and that's the stock of the hour and we will have more next. this is bloomberg.

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matt: we have breaking news on the indictment of former president donald trump. the indictment has been unsealed in a miami federal court and now we see the charges include protection of national security documents which we knew but also charges of conspiracy as well as obstruction and false statement charges. let's get over to kailey leinz who is covering this. we expect a press conference in about one hour and 15 minutes on this from the department of justice. what do we know right now as we see these headlines crossing the bloomberg terminal about the

unsealed indictment? kayley: as you said, we now know firmly what some of these charges against former president trump are. these are federal crimes he has been charged with, the first time in history a former president charge federally and that includes retention of national secured he document, conspiracy obstruction and false statement charges. we had learned there were seven total charges and trump's attorneys who are not on his legal team in regard to this case said he would be facing some obstruction based charges as well as espionage act related charges. when we talk about these federal crimes, these are crimes that could mean prison time for the former president depending on the charges and whether he is convicted means he could become ineligible to hold public office. some legal experts have indicated they think that may not apply to the presidency. this includes 37 counts total of seven different criminal charges

in this indictment. the present is now going to be gearing up a few days from now on tuesday emma june 13 to appear at the federal court in miami. he has said that he had been ordered to do so and he insisted he is innocent and called this election interference and he has now been charged in those charges are now unsealed in a miami federal court. jon: thank you and we will watch federal authorities and how they handle this with the latest on the trump story. the other story we've been watching on the stock market side is tied to tesla though shares continue their climb. the tesla stock prices binance longest winning streak going back to 2021 and analysts are assessing a much cash it could generate. piper sandler took a stab at this estimating that over the next decade on an annual basis, tesla could get upwards of $5

billion in revenue from non-tesla car drivers who are charging up at those tesla superchargers. matt: it's one of the most fascinating stories in the automotive space. we are essentially watching the formation of an international standard or at least a u.s. standard in terms of charging which is something that should in theory really help to boost ev sales at a time when they are already on fire. we expect 20% of all new car sales to be electric vehicles globally this year. let's bring in the senior analyst who has a buy rating on tesla with a $230 price target and though shares are hovering around 250 so it looks like you will have to hike that up. they expect to gain some real revenue from this.

what are your expectations about the business positives of these agreements with ford and gm? >> thanks for having me on. tesla has about 70% share in the u.s.. there are about 300,000 vehicles sold year to date and they would spend about $400 million per year on charging. if half of that charging is outside the house, they get half of that and that's going to be shared between tesla and others. somewhere in the neighborhood of $100 million. if that quadruples or goes five times in the next 10 years, essentially they have the charging network so this just adds to the roi.

it's not a big needle mover. it's kind of a drop in the bucket but moreroi on the charging network. the bigger goal for tesla is the subsidies getting across all models which will expand sales much stronger for tesla and expand the competition. jon: the big question after ford and gm have teamed up with tesla's will we see other electric vehicle makers come next? are you fully anticipating at least some of the automakers to join? >> yeah, it makes a lot of sense. if you look at the big two or porsche or bmw and those guys,

you could logically expect them also to join this. the north american charging standard that tesla is pushing seems to be getting a lot of traction now. it definitely will expand and we could see more people joining. jon: thanks very much. we will continue to watch the tesla story. mentioning donald, we have just learned that the donald trump indictment is unsealed. the former president is facing seven charges including willful retention of national defense information, concealing documents, conspiracy to of dropped -- up to obstruct justice. we are waiting the former

president to surrender to federal authorities and we will continue to watch that story and we will be back in a couple of minutes area this is bloomberg. ♪ it can happen to the people who teach us and rescue us, the people on our team and in our family. it can happen to the people who serve us and the people who served. the people we work late with and stay out late with. it can even happen to the person in the mirror. opioid use disorder is a disease that can happen to any of us. it's possible recovery can happen to any of us, too. if you wake up thinking about the market and want to make the right moves fast...

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matt: we have breaking news on the indictment of former president donald trump. the indictment has been unsealed in a court in miami. we now know there are 37 counts across the indictment including conspiracy, a charge of obstruction, false statement charges and of course the willful retention of national security documents. with that, let's get back to kailey leinz and washington, d.c.. she has been briefly reading through the indictment. a lot of this you could have

foreseen so what do we know? kayley: a lot of this was alluded to by the president's attorneys over the last 24 hours. we have the breakdown on account by account basis. counts 1-30 one, willful retention of national defense information. this indictment breaks down each document between top secret, secret designation. there are 31 counts there and count 32 is conspiracy to obstruct justice. the 33rd count is withholding documents and 34, correctly concealing a document and count 35, concealing a document in a federal investigation and 36, scheming to conceal and 37 and 38, false statements and representation. nearly 40 counts here, seven charges in total including the retention of these documents. this indictment goes into detail into investigation.

they stored the documents in mar-a-lago in boxes. it included military vulnerabilities that could put national security at risk. they say he showed classified documents to others on two occasions in 2021 and says after the investigation was open, trump endeavored to obstruct the fbi and the grand jury investigation and conceal his continued retention of classified documents. these are federal crimes the former president has been charged with and we will wait for his appearance in miami of the federal courthouse on tuesday. matt: we see the headline coming out of the white house that president biden says he hasn't spoken to merrick garland about donald trump and he is not going to. what do we know about the way the white house has dealt with the doj and the special prosecutor? kayley: according to president biden, they have given no

direction to the doj and the president earlier today said he had no comment on president trump's indictment. this is a white house that wants to avoid the appearance of this being political. donald trump said this was a correct biden administration and this was election interference at the highest level, a continuation of the greatest witchhunt of all time. the former president is trying to pass this office something that's politically charged and it's likely something the white house is trying to stay far away from this. matt: thank you so much and kayley will be covering this day in and day out. we will have all the relevant headlines for you as well on bloomberg television. for jon erlichman, i am matt miller, this is bloomberg. ♪

>> we are kicking you off to the closing bell. a mixed day of trading with a lot of anticipation before next week. no data to react off of today. you are still looking at a rally on the s&p 500. big tech also rallying.