welcome to bloomberg markets. matt: a quick check on the markets, we are looking at continued gains on the s&p 500, up almost one full percent, 43.72 is the level, this will bring us back up to a level on the s&p that we saw before the fed started its interest rate increases back in march of 22.

the u.s. 10 year yield about five basis points, they .7861, the bloomberg dollar index coming down a little bit. crude gaining back $2.45 a barrel, still under $70 at 69.56. jon: giving a lift to energy stocks as a result, tech is still in focus. the ai boom alive and well, we are seeing it reflected in oracle's latest quarterly results. some upbeat commentary with numbers helping shares to the tune of 1.5%. the tesla charge continues, 13 days of gains. a lot of that started with the charging deals, shares up about 40% over the 13 day stretch. we are watching financials because deposit concerns and how it impacted regional banks invited a lot of questions around net interest margins and

we had two views on what companies had to say. zion shares down one point 5%, some sighs of relief. shares up close to 5%. matt: we are watching former president donald trump, he is set to depart for the wilkie d ferguson junior courthouse in miami. he will become the first u.s. president, former or otherwise, to enter a plea to a federal indictment. we are watching the motorcade, looks like they are rolling out and it should take him about 20 to 25 minutes to get to the courthouse from here. we will bring you any details as we get them and we will continue to give you full coverage of this historic plea and indictment as details come

across the wire. joining us to talk about the other story we are watching closely, that is inflation -- we saw cpi numbers come out this morning, a lighter than expected , a little better than expected if you want inflation to come down. eggs dropped the most in 72 years, pointing out food inflation may no longer be a huge problem. joining us is veronica clark, an economist at citigroup. i do not know why the egg story is so interesting to me. veronica: those are the prices people have been experiencing, we have seen headline inflation come down. so the out-of-pocket costs people are experiencing are coming down. if you look at some of the details, underlying core inflation still seems very strong, too strong for the fed. jon: against the backdrop as we await the fed decision tomorrow,

what is the language the fed has to share with the market, assuming the pause happens? for a make the assumption, do you think the fed is getting ready to pause? veronica: we are may be the only people left thinking the fed will be hiking tomorrow. it is a complicated meeting, one of the most complicated we have had in a while. tomorrow they will up to economic projections, lowering the unemployment rate forecast, raising inflation. i think everyone is expecting a data-dependent fed, which means rates need to be higher. they will tell us where they think rates will be at the end of the year. it is a weird communication issue to say we think rates need to be higher at some point, we are not raising them right now. markets are not expecting they will hike tomorrow. if it is not tomorrow, maybe it is july. the risk is we will still see a hike tomorrow.

jon: you cover the canadian economy, you made headlines early on for predicting the bank of canada, which had gone into pause mode, would have to step off the sidelines and raise rates because inflation has been inflationary. i guess that would be the challenge with the fed moving ahead with a pause, dealing with the kinds of issues the bank of canada just had to deal with the last couple weeks. veronica: we might learn something from what the bank of canada experienced, they paused after raising rates in january, waiting to see the activity slow, that inflation would slow. it did not. not only did activity not really slow, we did get a pickup in housing activity in canada. housing in the u.s. has bottomed the last couple of months. but that is a new upside risk for inflation if the fed might be pausing also. matt: why do you think this economy seems to be doing so well, despite over a year of

consistent and pretty hefty rate increases? despite inflation that is still at double the level the fed wants to see? veronica: 339,000 jobs still added, employment levels are still a bit lower than desired. i think a big part of it may be consumers had a lot of excess savings, that has probably been spent out even more than we would have expected a year ago. maybe we are coming up to the end of that. but everything has been very resilient. matt: picking on the federal reserve is somewhat of a national pastime. do we start to applaud the fed and say they have engineered a soft landing? veronica: i would be cautious on the soft landing narrative. i think maybe what we are getting into now is a period where growth slows, headline

inflation slows. we are running stably, underlying 5% inflation. i do not think the fed would be comfortable in that scenario and that might require a deeper contraction of an actual recession. matt: great to have you, veronica clark of city. let us get back to the trump motorcade, former president trump on his way to miami courthouse, facing historic criminal charges, federal criminal charges. we will continue to monitor his progress and bring you any details when we come back. this is bloomberg. ♪

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jon: this is bloomberg markets. time for the stock of the hour, intel shares moving higher. the chipmaker is in talks to become an ipo investor and soft bank owned. it has been overshadowed by the likes of nvidia, but opening up its factories to rivals is a key part of the new plan. this could be a signal of even deeper ties between intel and the u.k.. matt: it is interesting, we have all been so focused on nvidia this year and the performance. it is almost a trillion dollars stock and intel is still worth less than a fifth of that. this is a great way for intel to kind of get back into the line of sight of investors, as well

as take part in the growth. nvidia wanted to take part in the growth, so much that they wanted to buy it. but that was stopped by regulators. jon: to have an ipo right now, when everyone is talking about ai excitement in benefiting from that, there's been talk of them raising as much as $10 billion, then opening up factories. i think it is more than 50 years thats focused on its the company is going through its own big transition when we are watching what happens with the arm ipo and ai in general. matt: back to the trump story, the former president will appear in a miami court today after being indicted on 37 counts for allegedly mishandling classified documents after leaving the white house. kailey leinz is outside the courthouse enjoins us live.

as we walked the motorcade drive down, what do we expect to see? kailey: as you say, is motorcade is on the way. he could arrive at the courthouse within the hour, i am standing next to a loading dock area that potentially the motorcade could come through. when i talk to a security official, they said they do not know what entrance he will use, they will be reactive just as the press. once inside, he will be arrested and processed, as would anyone else charged the federal crime. we understand it is unlikely he will have a mugshot taken and he could potentially have to surrender his passport as well. he will then appear before a judge and is expected to plead not guilty to all 37 counts of federal charges. once he wrapped up here today, he will get back on his plane and back to new jersey, where he will hold an event at his golf club, speaking to supporters and

having a fundraising event. his campaign believes he could raise $2 million from donors tonight. jon: i was going to ask about that. obviously to continue on the campaign trail with a strong message tonight, have you heard from anyone specifically about what the former president may be thinking as he is in court and prosecutors are charging him with jeopardizing national security? kailey: of course we have heard from the president many times already, he says he is innocent of these crimes. he says it is a witchhunt and election interference at the highest level, weaponization of the justice department against him, which is a narrative we are hearing republicans compete -- repeat. the miami police said they were bracing for as many as 50,000 demonstrators today. i would not say numbers are in

the thousands, but several hundred people are here in support of the former president, wearing things like shirts that say he is innocent, he won the 2020 election. one flag saying i know it, you know it and joe biden knows it. that is the narrative the president is pushing and will likely continue when he speaks in new jersey later today. we have seen the president indicted and arraigned before in manhattan earlier this year. the effect it had was galvanizing his space and helping him raise millions of dollars, so we will see if it is the same this time around. if this is something that serves him well as he seeks the presidency again in 2024. jon: we will continue to monitor the motorcade to the courthouse. kailey leinz in miami. coming up, an update on the recovery of the travel sector in the state of airplane financing with the ceo of abi aviation.

this is bloomberg. ♪

>> i believe back to pre-pandemic levels by the end of the year. >> it is sustainable and is going to continue. we have seen a structurally higher level of leisure demand. >> we do need some stability. we are the recipients of all of the signals and inputs from the macro. inflation rates, interest rates. >> supply chain engines would be one of them, issues holding us back. >> the supply chain is difficult. to get what you need, to get the airplanes ready. jon: that was a host of global

airline executives speaking at last week's meeting in istanbul, that gets us to today's for what it's worth. the number, $8 billion. we saw the ceo of united offering pilots a contract with a value that could exceed that amount over four years. if it does, it would be the richest deal we have seen from one of the main u.s. carriers, speaking to the leverage pilots have had in recent negotiations with airlines. matt: this says to me that this industry has drastically underestimated the capacity it is going to need as we see economies open up post-pandemic. they do not have enough planes and that is what i want to focus on right now. as the travel sector recovers and booms back to live, the amount of metal in the air is not nearly enough to satisfy the

demand. joining us is ali ben lmadani, the ceo and founder of abl aviation. thanks for coming on set with us today. how many more planes does this industry need? we are seeing massive orders. ryanair ordered 300 planes, united ordered 200. india has ordered another hundred and they are well short of what they need. ali: there is a big shortage, we spoke about it last time. you will see next week, a lot of orders. turkish airlines is making a huge order. next week is the paris air show. as a consumer, you see the cost of the tickets. there is big demand, the manufacturers cannot deliver fast enough.

supply chain issues, there a big supply chain issues. that creates a shortage and therefore we have more and more demand for the aircraft flying and there is not enough. so a lot came back into service. we need as many capacity as we can to fly worldwide. matt: nothing is parked in the desert, everything is brought back into service? ali: the cost of taking out of the desert, flying it again, it is hard to make it makes sense. today, all of the airlines need aircrafts. they need as much capacity as they can have to fly. there is a big demand. jon: in the face of the inflation report we were covering earlier today, does

that even come up in the conversations around demand for airlines? or is it so strong that is part of the inflation story that we have to consider? ali: the cost is high, the cost of financing is high. it is not impacting the leases for the airlines, but the cost of tickets is higher. the cost of fuel is higher. everybody traveling this summer will see the expensive tickets. there is huge demand for aircraft. it is amazing how quickly we were able to come back from covid, the biggest crisis in aviation. we came back to almost 2019 capacity, which is amazing. that shows the aviation industry -- especially coming back from a crisis like covid. jon: where are you seeing the strongest demand?

ali: this summer, there will be a lot of demand for summer vacations. a lot of people are going to go to europe, a lot of people going to morocco in the caribbean. lots of people were not able to travel during covid and they are all traveling back with their families. it is more about leisure than business, we can see a lot of capacity being deployed. matt: i feel like the winter is a better time to visit. ali: i would be happy to have you over. matt: talk to me about abl aviation, you say you have unique investment strategies that fall outside the status quo . so what exactly do you do you have planes, you invest how? ali: release to companies.

we do midlife and end-of-life, so we cover the whole spectrum. we like to be called a one stop shop. we are there to serve the airlines, whatever they need on the financing basis, the leasing basis. we want to make sure they get aircraft when they need it and making sure they get to the most efficient cost of financing we can get. we customize the airlines and please investors to get the we need. matt: always great to talk to you, your finger on the pulse of the airline industry so we get the most intelligence from you. thanks to ali ben lmadani, ceo and founder of abl aviation. we are looking at video of the trump motorcade arriving outside the courthouse, but is get back to kailey leinz on the ground. do we know what entrance he is going to use? kailey: he is arriving, we will

see alternately what happens with the motorcade. there is a huge crowd of people outside the actual entrance walkway into the courthouse in support of the president, there are into trump protesters. activity has picked up leading up to this moment, including from a security standpoint. there are several law enforcement official standing next to us. once he gets in is where we will see his formal arrest and processing, like anyone else charged with a federal crime. he is planning to plead not guilty to all 37 of the counts. it will be at that point he may come outside after wrapping up proceedings and addressed supporters, or if he will wait until he is back in new jersey this evening. jon: we mentioned the likelihood he will forgo a mugshot. kailey: there has been reports they are not going to take a mugshot this time around, because one already exists.

this is a former president who has already been indicted on criminal charges, this is the first incident a president has faced federal criminal charges. our understanding is there may be a fingerprint taken, but no mugshot. it is to be determined as to whether he will have to surrender his passport. matt: kailey leinz will be all over trump's visit to the miami courthouse, then his departure as he heads back to his golf course in new jersey, where he will reportedly hold a press conference and fundraiser later tonight. we will bring you all of the details as they emerge, so stay tuned to bloomberg television and radio for full coverage as well as our website. this is bloomberg. ♪

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katie: kicking you off to the close, two hours to go. romaine bostick is off today. looks like we are looking at a pretty good-looking rally after welcome news on the inflation front for the month of may, s&p 500 currently up about 7/10 of a percent. alix: the weaker dollar is helping commodities, cyclicals like material, energies and industrials outperforming within the s&p.

kti: