matt: welcome to bloomberg more, about two thirds of 1%, up 30 points on the broader index. 10 year yield is up a little bit, it had come back down. still over 4% on 10 year treasuries. the bloomberg u.s. dollar index, i was away last week and it has

come roaring back end is holding, 12.26 and routed dropping down, but still well over $80 a barrel. the markets seem to be holding the same strength that they were when i left over a week ago. in terms of individual movers, a lot to the downside. tyson foods closing down some chicken factories, which is a concerning statement. but that is what they are called, up five and half percent because demand and prices are down for chickens. and 99-year-old trucking business files for bankruptcy, shares down 17% area icahn enterprises continues the drops we saw last week after they cut the dividend, i guess it was unsustainable. tesla down about 3% as the cfo steps down, cathie wood said she thought he was great and wishes him the best in the future, but thinks his successor is going to

be doing just fine as he has been there for the last five years, since 2018. talking about tesla, i want to get over to the west coast. ed ludlow joins us, he covers the company closely. you heard what kathy told us, what you think about why is zach leaving and what do about the transition? ed: it was a surprise piece of news. a lot of investors we spoke to expressed surprise but point out 13 years as a long time any company, let alone working for elon musk. he became cfo in early 2019. when he was named the new cfo, there was a sharp reaction to the downside because he was in an unknown quantity, but he had been at tesla for a significant number of years before that in more junior finance roles in he has proved to be a capable cfo. it is important to note he gave

notice august 4 but will remain with the company until the end of the year to aid with the transition, which has value in and of itself. we know less about the chief accounting officer, but has a similar background. a longtime finance executive with tesla. she is confident zach will have trained him and prepared him for the opportunity. matt: absolutely. in terms of what they have going on at tesla, there is a lot. they want to open up a new plant in mexico, i guess they are going to start making actual production models of the truck and sell it to people who have had it on reserve for years and they are growing production at an incredible rate. a lot of people expect them to make 2 million cars this year. ed: he speak to any long-standing investor of tesla and they will tell you that zach holds the core competencies a

cfo needs. he was instrumental in the capital raises taking part the last three years. he also has a strong grasp on tesla's broad range of products, from software through to not just cars, but the energy size of the business. i always point this out with you guys, if you go back and look at the earnings transcripts of many of the last quarters, you get the deepest understanding of how they managed the commodities fluctuations, how they use the lever of price cuts but protected the bottom line. that communication did not come from elon musk. matt: you may have heard me ask cathie wood about this, new energy finance put out a story last week saying gm is making big batteries and these cars are going to go to rich people and

we will not have enough lithium for the mass market. is that really a concern and more specifically, does tesla have a grip on their supply chain better than anybody else does? ed: the take away as they did have a good grip on their own supply to peers. zach being the one that explained in prior calls, for many of the raw materials and fixed-price commodities, they have fixed term contracts six months out we had that gave them great visibility for what was to come because they had agreements in place for future data delivery. when there were swings in the market they were not just protected, but had advanced sight of it. you go back to how they protect themselves on the bottom line. the story of early 2023 was using price cuts as a lever to drive volume demand for tesla vehicles, basically cut prices

and open up new pockets of demand at a lower price point because people could afford them. that impacts profitability, but they managed to maintain industry-leading margins. zach has been at the heart of that. matt: great to have you join us, hope we will have you on again with us tomorrow or the next day, because rivian is coming out with earnings and you cover that company like no other area in other news, ubs is revamping leadership of its banking division with nearly 40 new appointments announced in a memo today. sonali basak joins us on set. what do we know about the new clash? sonali: there is a separate memo that has gone out with america's leadership, dozens of employees affected in addition to the hundreds we know that might be laid off in the process. some ubs bankers are leaving,

some very famous ones. mike santini has been executive chair when andrea was under sergio to do initial rounds of amplifying the investment bank. he will be leaving, ross stephenson will be staying on the executive team. there are two other senior leaders, he was a high flyer at ubs for a while. there are new high flyers including one from barclays in recent months, so a lot of the new team reports to him. a few pieces i find interesting because credit suisse staff is being brought up to the top. it is not in spades, about a half dozen or so, including in the americas co. heads of financial sponsors now led by a ubs veteran, so a mix of both banks as well as barclays at the top. significant moves. matt: this was expected.

one of the things i did not expect on wall street in terms of moves, jeff curry. who is still a child, only 56 years old. this is probably the biggest name in commodities on the street area -- street. sonali: the research staff is the face of the business in many ways because you do not have traders talking on television or writing notes to clients. research departing the bank. i would also say it is a heritage where you see people after decades start to level out and the new stuff coming up. will the star power be retained in the next generation after a sensitive time for goldman sachs, seeing senior leaders depart? very common for people to leave. matt: thanks so much for joining us, sonali basak, our reporter.

joining next to discuss the continuing boom, this is bloomberg. ♪ if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. which for those on medicare, or soon to be, is a good reason to take charge of your health care. so consider this. an aarp medicare supplement insurance plan from unitedhealthcare. why? because medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could really add up. even thousands of dollars a year.

medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare today and ask for your free decision guide. learn more about plan options and rates to fit your needs. now if you like this... greater freedom... you'll love that medicare supplement plans have no networks and no referrals needed... see any doctor. any specialist. anywhere in the u.s. as long as they accept medicare patients. these types of plans also give you more flexibility when traveling in the u.s. your plan goes with you... anywhere you go in the country. even better, these are the only plans of their kind endorsed by aarp. call unitedhealthcare today for your free decision guide.

so if you have this and want less out-of-pocket costs... and more peace of mind... consider adding this. an aarp medicare supplement plan. take charge of your health care today. just use this...or this to call unitedhealthcare about an aarp medicare supplement plan.

matt: this is bloomberg markets, time for our stock of the hour, elanco which offers pet care, the market cap is roughly three times petco, or than $7 billion. the ceo joining us now, jeff, thanks for your time.

talk to me about the mix. we talk about farm animal and pet health care, what is the difference in revenue? >> after our acquisition we are about 45% farm animal, with international to u.s.. a diverse business, what make this so attractive is of multiple species, over 20 species in 90 countries and a nice mix between them. that brings a lot of diversity and durability. matt: as long as i have been in this job i have seen proof that people will pay anything to take care of their pets. what has changed? did covid drastically increase the number of people who have pets in the household? >> it was a catalyst for a lot of trends we have seen for some time. it has given it a strong tailwind. more pets, pet numbers went up

around the world. but the biggest trend is the humanization and urbanization of pets, and the globalization. seven to eight out of 10 homes have a pet in the united states. in china, that is one to two. in brazil, three to four. receiving the globalization and the standard of care, expectancy of care is increasing. editors increasing opportunities. we launched the first in the market for diabetes and just launched a new monoclonal antibody for parvovirus. so there are more options for care as well. matt: a buddy of mine told me his vet scolded him for brushing his cats teeth. i thought, i never knew you could russia cats teeth. how much has this industry increased in terms of the things we do with our pets that previously would've only done with our children? >> similar, to the human side,

the pet, we have added a couple of years onto a pets life over the last decade. as pets get older, this idea of we want active, mobile, healthy, longer living pets, with that comes a lot of opportunities. we announced we are going into the durham market, the second largest pet market. the number one reason people take their pet to the vet is that -- we are due viewing this into the market. today we announced a new product that will have four active ingredients that will be able to cover heartworm, tech and fleas. another opportunity where innovation comes. people are loyal to brands, increased standards of care and all of that provides opportunity. innovations rewarded, with that portfolios are rewarded and

price is resilient. we average two to 3% price in this industry because of that. matt: the big gain in the stock today after earnings. thanks for joining us, jeff simmons talking to us about the growth in pet and farm animal care as well. coming up, we will talk about the palantir stock, and has grown 180% this year, again we have seen buy that stock. earnings after the bell. we will see if they can put the numbers behind it. morgan stanley calls the ai stock bubble near its peak. if you agree, we will see how that affects this player. this is bloomberg. ♪

76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme.

was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com matt: governments around the

world continue to seek best practices around artificial intelligence regulation while trying not to also stunt growth for the emerging technology. over the weekend, francine lacqua spoke to the israeli prime minister, benjamin netanyahu, in an interview. she asked about his priorities with ai. >> there is noise on the short-term markets and clarity in the long term markets. now amazon just invests $7 billion in cloud services. why? they know something i'm going to do. and the thing of to do, i would like to bring it to investors attention, a few years ago, 10 years ago i decided israel would be one of the top cyber powers in the world. one of the five. we have become one of the--higher than that. what i'm organizing is government policy and a government board with money to

make israel one of the three top ai powers in the world. francine: what do you say to investors who were you have change in terms of priorities? >> i have not. my kior it is our peace, prosperity and security. they're all dependent on prosperity to have the ability to fund the defense needs that we have and expand the pace. but prosperity is based on israel's supreme technological prowess. people rated it a seven on the ai list. because of the absence of government policy. i'm changing that and i'm going to announce in about six weeks the government policy, the organization, the project leader for a host of civilian and military ai that will thrust israel right up there. if you are an investor and you are not seeing that the added

value that is going to accrue to national economies is based on their ability to generate ai, this is not hype. this is israel. matt: there is his view. let's stick with ai. a note from morgan stanley says the stock bubble is near its peak. it says to end a rally, median 150 4% as nvidia has soared more than 200% this year. palantir reports earnings after the bell. the cohead of u.s. software at citigroup global markets joins us. thanks so much for your time. do you agree that this is a bubble? doesn't make sense to use that phrase? >> yeah. broadly speaking there is definitely a disconnect. you talked about nvidia, other stocks that we think are bigger beneficiaries from ai, like microsoft, some of the hyper scalars like amazon.

we think those moves are more justified. a name like palantir, you have not seen the fundamental turnaround yet. this is a company so growing revenue only 15%. it is not at the same scale as microsoft. i think there is a lot of optimism around the positioning and what growth could look like. but so far it seems more like a bubble versus reality, given how much the stock has moved and the lack of an inflection in the fundamentals of the business. matt: why do you think investors have driven the stock up so far? if you put it next to nvidia, the two track each other well. is it just the access to big data? >> yeah. this is how to town of retail interest. look at the ownership, there a lot of retail money. beyond even palantir, using

stocks like c3 ai, there is more -- retail investors want exposure to ai. there been a lot of press releases and you have seen the company be very active on media tours, talking about their ai p, the ai platform. it is a lot of enthusiasm, but again, as fundamental investors, the institutional investors i think are looking for when that starts to play into the numbers and that is something we have not seen yet. it is something we don't expect to see tonight. we think there will be a lot of talk about ai but we are looking for more substance to get behind the name. matt: what do you want to see when they, with earnings? what are you going to be scanning the press release for? >> it is an interesting set up that she set up. we think it is going to look like a strong quarter but not for the reasons you would want

to see. we think they are going to be the revenue guidance by a healthy amount. but a lot of that revenue upside is coming from the fact that a lot of their customers went bankrupt in the quarter. so when a customer goes bankrupt, you can pull forward the remaining contract value, which could be three or five years, all in that quarter. we think they are going to deliver healthy read on revenue. but simple because of the fact that some of their customers -- we would like to see the growth in the overall business if you strip that out is starting to accelerate. if last quarter it grew 14%, maybe we want to see 20 and it raises to the full-year target. we think this is going to be a one-off dynamic and ultimately we are skeptical given that they have moved the stock and head the results. matt: two backup and look more

broadly at the ai bubble, what you think it is going to take to poppet? -- pop it? tyler: timing is always tricky with these. if you go back to the.com bubble or arguably bubbles in lower quality assets during low interest rates, ultimately, as you heard in some previous segments, we are very positive on the ai theme. we think this is equivalent to the early days of cloud computing or other big technology cycles. clearly you are trying to see some of the numbers upside show up and companies like nvidia. it is a little difficult to call it a broad-based bubble. on the stock specific basis, if you don't really see the numbers turnaround for company like county fair, we think that will be a catalyst that drives further downside in the stock.

probably speaking, we are optimistic on this. i would not call it a bubble broadly but certainly in selected areas. matt: in terms of the stock, you're still accelerating on the company, you raise your price target and told us why you expect the earnings news to be good. what do you need to see from palantir to change your rating to at least hold? tyler: i would like to see the topline growth of this company really move higher. as i mentioned before, it is only growing about 15% year-over-year, which is similar to the growth rate of older software companies like oracle or adobe, salesforce. the high-growth, high flying software companies we think are winners in this space, these are growing 30, 40%. and both companies trade at about the same multiple.

we think there is a disconnect between the fundamentals of the business and the valuation of the business. if the fundamentals improve, we would love to get more constructive. matt: thank you for joining us, tyler from citigroup. i am matt miller. this is bloomberg. ♪

it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

>> the bond market has spoken. live from new york, i'm romaine bostick. katie: kicking off to the closing bell, we are looking at a rally. last week was rough. on this monday, the s&p 500 is up. its worst week since march last week. it's now outperform a big tech over