sonali: we are 30 minutes into the u.s. trading day. here are the top stories we are following for you this hour. big energy strikes again. diamondback comes with a deal to buy endeavor. equity investors are hunting for the next leg of this rally. big spenders will get a view from the c-suite on whether the u.s. consumer can stand strong under the weight of inflation. the ceo behind the company behind upside down heinz ketchup bottle is going to join us next.

sonali: i'm sonali basak, and welcome to "bloomberg markets." we are going to start with a check on the markets half an hour into the trading day. the s&p 500 standing essentially flat on the day, looking to break further into the green after cracking the 5000 level on four straight days of gains. nasdaq 100 essentially unchanged on the day. both indices going between gains and losses on the morning. the two-year yield staying flat on the day. we are hitting highs of the year just before key inflation data this week. we're watching the oil industry because it hit another megadeal. diamondback energy agreed to buy texas oil and gas producer endeavor energy resources. it will create the largest oil company in the permian basin. joining us is at the months, was covered this industry for a very long time.

when you look at this deal and put it into perspective with the flurry of deals in energy we've seen the last four months, what is different if anything about this one? >> this is a very interesting transaction. surprise surprise, another megadeal in the oil patch. diamondback as agreed to pay $26 billion for endeavor energy. diamondback is going to own 60% of the combined company. endeavor shareholders will own 40%. this is more of the same, the bigger getting bigger. the permian basin is the most productive oil field in the u.s. it has been rather fragmented until now for the 20 years or so of the fracking boom. what you have is diamondback, which has bid on the sidelines, going in and buying an apron getting financial benefits of that. sonali: i'm most interested in the a going dollars of cash they're willing to spend. how many energy commies are laying around without much cash to put towards the -- energy companies are laying around with that much cash to put towards

these types of deals? matthew: they are rebounding from the doldrums of covid-19 and been making money hand over fist and a lot of them are sitting on a big cash piles. it is not that unusual. sonali: thank you to matthew monks of bloomberg news. more from the energy sector i'm sure very soon. we are joined by a partner and founder -- we have seen energy deals hit the market in a big way. we see the energy sector itself for the s&p 500 lag meaningfully come which is given a lot of weight to the tech trying to keep up a lot of the steam for this market. if you look past the s&p 5000, what is supposed to drive the next set of results? >> it is hard to say. earnings are getting better. they are putting much outperformed relative to expectations across the board. we need to see the broadening of performance. my own view on this, the s&p is feeling extremely expensive right now. sonali: what feels the most expensive in that? ann: a lot of

these "ai"-driven stocks where the proof of concept and how it was going to monetize hasn't come true for wishing at. the money from ai is clear, but a lot of them, come cheer being one of them, getting a little -- palantir being one of them, getting a little expensive. i think we are seeing bubble territory. sonali: the valuation for these ai-driven companies, do you start to sell or avoid the names in the sector completely? how much do they draw down? ann: personally i would sell some of those names. workday is when i absolutely love. the company has done an incredible job of finding applications for productivity. i'm taking profits and looking for more value-oriented places to put my capital. sonali: how do you think of this broader dynamic? if you are an investor and looking at the use of capital for a company, do you prefer them investing in things like

technology than ai? do you prefer them to start giving money back to shareholders? do you prefer them to pull a diamondback instead $26 billion on a deal? ann: let's go back to this concept of tech. i do think there are some m&a targets in the technology space and the consumer space, some of which went out -- there is value to be found there could -- if company's are using cash to make acquisitions that are strategically interesting and they can execute, i am for it. if they are using it to invest in strategic initiatives that are poorly articulated and the return on investment is not well defined, i'm not in favor of that. middle share buybacks, as an investor you like to see some liquidity, but i -- investors are not finding uses a capital. sonali: do you think it is

masking bigger issues we are seeing in broader corporate america that is driving us to s&p 5000 and beyond? ann: i think you have seen a lot of these companies do incredibly well in accumulating cash, as you open earlier during covid. we see that with energy. they are trying to figure out what is the best use of allocating it. i do think sometimes return of capital is being used to mark lack of strategic change. one example of that is meta. executing well, strategy's not really changed. things like a dividend for the first time or first in a long time adds a little bit of sizzle that takes a little bit of distraction from some of the core issues. sonali: interesting you say meta. second gainer on the nasdaq 100. nvidia another one. where does nvidia fall into the ai bubble territory conversation? ann: i would said it was illustrative, and then i look at arm, even more expensive than nvidia. i think one article came out of

the "financial times," analysts are giving to say maybe nvidia's getting a little bit too expensive. i happen to be in that camp even on price-to-earnings to growth ratio. it's looking a little bit topping to me. sonali: are you looking for a buying point? ann: in some cases yes. in some cases yes. nvidia is well past that point. in other cases that inflection point is less about where the share price is that and more about is there a catalyst for change of the company? i'm seeing that with a couple of names. sonali: there is a lot of discussion about the broadening and depth of the s&p 500. where do you start to pick up some value? when does that start to pay off? ann: i really like companies that are starting to refocus -- i've been a ceo of a large company, and it is interesting, small things can drive execution

that could use big bumps in performance in the near term. mark zuckerberg self medicated with deep headcount cuts, with deep cost-reduction. i'm looking right now at salesforce, and i see benioff doing something similar. he has cut down on his headcount, he has been pushing through price, he sells medicating in this -- he is self-medicating in a similar way. seems to me a dividend is coming at some point, too. sonali: stick with us, we will get back to you in a second. we will look at what is moving markets. what are you looking at in the market today? >> you were just talking when nvidia and we were looking at continuous rally. 46% this year. we are having conversation about everything people are looking at . the ceo was saying that the advances in ai will keep the cost in check. what we have seen is he is saying that growth in ai data

centers will double in the next five years. that will compensate for the price. of course there has been discussion about the $7 trillion ask from sam altman in terms of middle east investors and the money he is raising for the semiconductor initiative. everyone is looking at cost. the most important metric is profitability, and we have a report from morgan stanley showing this year everyone cares about profits. sonali: i want to look at names in the news outside nvidia. we are talking about ai, but we are also talking about sports. draftkings actually down a little on the day after that big news of its partnership with barstool. what is going on there? denitsa: we already -- that news has been going on for a while on the stock is up 23% this year. significant game.

some of the pullback today at makes sense after that gain. they announced the deal right after the end of the super bowl, multiyear, "monster partnership." that was a partnership they used to have in the past and something they are renewing now. if you look at the gambling number, there was some predictions about 68 americans gambling for this super bowl. the price tag, 23 billion, which could potentially be the most bet-upon sporting event in u.s. history. sonali: not the only place we are seeing record numbers here. talk to us about paramount and what they are seeing out of all of this attention. denitsa: some productions show paramount can generate $700 million in ads. in terms of viewership, the ceo says this may be the most-watched and highest ad revenue in terms of super bowl history. last year we saw $150 million. this year we are showing predictions that this could be

$200 million. whether this generates, actually happens, the issue is the stock is down 13% this year and it lost $1.7 billion last year in terms of revenue. you can imagine this is much very needed ad revenue for the company. we have yet to see whether that can help the stock price. sonali: denitsa tsekova, we thank you for your time. coming up next, we will talk about tesla, because a sluggish start to the you is causing investors to wonder if the ev maker even belongs in the magnificent seven. as we had to break, i sat down with the former u.s. attorney for the southern district of new york. here is what he had to say on the mistakes investors have been making in search of instant well. >> i suppose truthfulness and honesty -- and combine that with i'm not even talking about greed, but general interest in wanting to get to the promised land with a pot of gold at the end of the rainbow, that is a dangers, nation. that is where people sometimes surrender their common sense and

good judgment.

sonali: after rallying in 2023, tesla stock is sputtering this year and it is down over 20% since january. the debate is going on wall street if tesla still qualifies as one of the magnificent seven. for more we are joined by bloomberg's detroit bureau chief. does it belong at this point? david: i think you have to give it more than the first 5, 6 weeks of the year to throw it out of the magnificent seven p i do think something fundamentally has changed with how investors view this stock. you no longer have the 50% growth rate. tesla may be lucky to have 20% growth rate in ev sales.

one analyst says it has become a model y company because the other three models are doing much for them. i don't know if the cyber truck is going to give them that kind of growth. that leaves investors waiting for the $25,000 tesla, and we are not sure when that is going to come and how profitable that will be. a lot of question marks on the vehicle side of growth. when it comes to ai, self-driving vehicles or semi autonomous vehicles have been really difficult to do and do well and do at scale and meant -- and make money off of. it is not the business everyone thought would be blooming by 2022 and here we are in 2024 and there is lots of problems with that stuff. to say tesla is in ai company is also a tough sell. elon is going to have to come up with a technology story and they want to be a winner in the next bloom of ev's, whenever that happens, to change people's minds. sonali: you think of the

overhang, rivian falling on the back of the barclays downgrade, how long of an overhang is tesla facing before it can rejoin the path of the other tech giants? david: it could be quite a while, because if you look at ev growth, there is a growth even in the u.s. and definitely markets in the world, particularly china. it is just tough because you hit a point where early adopters, luxury buyers have their ev's,k and to hit the mass market you need to lower prices significantly, and when you do that and sell cheaper vehicles or drop prices of existing electric cars, you lower your margins. there is a catch-22 there. they are starting to look like any other car company. if you look at the gross margins, which they brag about less than 20%, now they are not far from general motors' gross margins. they're looking like any other car company and that does not

have them in the magnificent seven of tech stocks. sonali: what could turn the story around? david: they need a real ai story, that is have to do. much of their revenue comes from cars. they need something that -- either from the dojo computing platform that elon musk has talked about or a breakthrough in self-driving, and that is tough to see because everybody but waymo's has had a difficult time with that. or cyber truck can one of these vehicles needs to gain traction in the market, and that is going to take time. you don't have a new vehicle in the market that can generate big sales in less than some extraordinary hit that they don't have in the offing right now. sonali: david welch, we thank you for your time. let's welcome back ann berry, threadneedle partner and founder. how do you view the tesla conundrum? have you found yourself redefining what the magnificent seven needs to look like? ann: elon needs to refocus full

support if you look at what tesla has you can pitche in a short -- accomplished in a short time it is extraordinary. no one is going to gm saying you need ai strategy. if you on is going to use that, the hook -- if you want is going to use that is the -- if elon is going to use that as the hook, he has got a focus on doing that. sonali: we have spent time talking about the magnificent seven and the gains it has created. what about outside that? what are the most compelling opportunities, and how granular do you have to get? do you have to find the beach and- -- beaten-down and chose to get back on top? ann: a lot of the beaten-down angels deserve to be beaten-down and it reflects how high they flew close to the sun. i think there are some names that are fundamentally high- quality businesses where we are finally seeing management teams come in doing the tough stuff,

and one of those is paypal. i've been watching paypal, it's been so frustrating, like watching a child unable to fulfill its potential because at the end of the day, you have 400 30 million users on the platforms, $6 billion of transaction value, 70% of americans use it can and it is trading at 18.5 times ebitda. i know you cover this space -- 8.5 times ebitda is very hard to find for above gdp growth. the new ceo has been there for performance and a new cfo has shaken up the team. if there is a big, bold vision, i want to hear one, but at least you have a go to market strategy. sonali: you think this is a pivotal point -- this is a stock that has fallen dramatically over the past three years and has been targeted by activists already. what is the compelling case that that doesn't happen again this year? ann: alex crisis done a really good job with the latest

earnings. he has fee-based expectations. if you look at the evs forecast, they've been cut across the street. he has also reorganized the way in which the company holds accountability within itself. product focus has been reoriented into what is the end-customer focus, the team has been restructured that way, he has made great new hires. that's the difference, the structure, the people, and having the right focus areas. sonali: you think about paypal and a firm as well on the performance we have seen the last couple days. 10% drop-off on friday after earnings. it is up on the day today. up about 3% or so. how worried are you about u.s. consumers and how levered they are the moment in their ability to engage in financial services? ann: there is two things i would say related to a firm. the consumer has been extremely resilient. delinquencies we have seen in credit cards and autos has gone

up and savings are below where they were pre-pandemic. we are coming to the end of that tailwind. i think firms of the world are going to feel that pain. the other thing i would say about a firm from the fact that a firm managed to become the massive corporations they are rather than just being a one trick pony product in the toolkit of the likes of paypal just goes to show how asleep at the wheel paypal has been but could actually go and take on these other new products with gusto. sonali: you're talking about consumer forces in the economy. what else are you looking at the macro that could affect some of the things you are invested in? we think about cpi this week. ann: i think a lot of it is going to be productivity focus. we have seen that in terms of the headcount reductions. we are going to see a lot more focus and the investment of big corporations behind productivity and tools. that includes, to go back to the names we've talked about, the likes of salesforce, workday, where there is a real attempt to

try and use data, business analytics, ai is an overused term, but let's call it sophisticated competition, so businesses can think about allocating resources more efficiently. i can see spend increasing there and consolidation of that spend. sonali: so much talk about an operational efficiency making its way into earnings calls at a greater rate, near historic highs really. when you look at these earnings calls from the ceo's trying to thread the needle in this environment, does that mean cost-cutting? does that mean headcount reduction? what else does it mean? ann: i think it means, yes, cost-cutting and headcount reduction, but it also means continued investment in things like migration to the cloud. in some cases the best companies go get the margins of and cost down but continue to invest in areas that are going to be good with growth. i will tell you a really good example of a canoe that is on this well.

-- a company that has done this well. sonali: as an investor you are ok if they spend money can they just cannot spend it inefficiently. ann: i want to know what the are white targets are. i want to hear cfo -- the roi targets are. i want to hear cfo's -- without that specificity it does not feel like they have done their homework. sonali: that is ann berry, threadneedle founder. we will talk about the committees making most bows on social media. this is bloomberg. ♪

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sonali: it's time for "social climbers," a look at the stocks making waves on social media. fanduel para & co. flutter is among winners in yesterday's super bowl. the online betting platform is enjoying social-media attention after the kansas city chiefs defeated the san francisco 49ers in overtime rivian, downgraded by barclays to equal weight, citing ev demand pressures. and monday.com shares are retreating after a rally that saw the stock nearly sort 90% since october. follow all the company buzz on tren on bloomberg terminal. coming up, the ceo of aptar joins us next. this is bloomberg. ♪

sonali: it's a busy week ahead for economic data with both cei and small business sentiment am tomorrow and retail sales on thursday. you're going to hear from a ceo who is dialed into the consumer. joining us is stephan tanda, aptar president and ceo. it is behind the upside down heinz ketchup bottle and the daisy squeeze pouch another other products you used over super bowl weekend. the data we see tomorrow come even if you see inflation coming down from we are seeing

americans grapple with higher prices than they have seen years ago. where is this still an issue, and where are you seeing relief the most? stephan: sonali, thanks for having me on. actually, we think inflation is more muted, but the consumer is in good shape because wage settlements were quite high, significantly higher than pre-pandemic time. yes, the consumer looks a little bit harder, but in particular evaluation is something consumers react to. a major dish soap provider had a super bowl commercial on who is revolutionizing the category. there is innovation and new technology that comes to the market. consumers was bought and consumers are in good shape. and the foreign ministry,

whether it is drug -- the farm industry, whether it is drugs or nasal spray, the consumer is much less concerned about inflation then getting the drug in an efficient way. sonali: are you seeing areas where the consumer is not willing to spend? stephan: there are areas with normal products like personal care, home care, and in the farmer market there is a lot of growth energy. the other area that is quite booming is travel retail. we serve a high-end dragon's maker and the travel season is gearing up. airlines are putting flights on. in the markets we serve we see good momentum. sonali: you were talking about the health care mistry come this idea of injectables medications. the obesity drug is fueling returns in the market as well as consumers spending on products.

by novo nordisk and others. -- created by novo nordisk and others. how is that impacting you? stephan: we are partnering with the leading brands. plunger, ways to get -- protect the drug and get the drug injected into the body. sonali: how much does it matter to have more subsidy for an industry like that via insurance, and how would that be impacting you? stephan: clearly there is tremendous growth especially in the u.s., the model is at a high price point. overtime discounts being made. i think you have the ceo for novo nordisk on last week and explained that very well. what this applies to up-and-down the supply chain is investing

massively into supply. we alone have invested $180 million and of course our customers invest many multiples of that as these drugs promise a benefit. right now it is much more demand than the supply chain can supply. sonali: i'm glad you brought out the supply chain because with so much geopolitical tension there was a lot of concern this could create every acceleration of inflation. how concerned are you? stephan: we see inflation muted, especially energy, transportation, and yes, wage rates are still very high. but the consumer also -- customers expect us to work very hard on productivity and re-work on a regional basis and we have initiatives to increase productivity of our aging supply chain.

we have invested more in mexico, supply capability, in china, asia, and in europe we have a number of productivity initiatives to make sure a thief need to of the day the consumer does nasa reach to make sure at the end of the date consumer does not -- make sure at the end of the date the consumer does not have to reach too far into the pocket. sonali: operational efficiency keeps on coming up time after time and earnings calls with ceos how much pressure to you feel do be clamping down on certain investments while you are redirecting money towards others? stephan: really you need to do everything. you need to invest in growth. we've invested massively in the new production capacity in asia, europe, the u.s. you need to invest in innovation and you need to invest in productivity. it is not a one trick pony.

you have to play the whole gamut and then you are successful. end of the year 2023, very successful with three points of margin expansion. good topline momentum into 2024. at the same time we have a full programmer of productivity to execute on in 2024 and beyond. sonali: when you think about why people are using their money on companies today, morgan stanley points out that there is a link between the companies focused on productivity and operational efficiency and ai. where does ai volunteer story? --where does ai into your story? stephan: ai's just another tool. we use and heavily in automation c inspection symptoms and quality control, python programming. for us as users of ai, it is another tool to make us more efficient. sonali: do you see it as having

the ability to cut more costs? and if so, where? stephan: absolutely. in the plan to get lower scrap rates -- in the plant you get lower scrap rates and higher quality rates. in the back of his you get automation of processes -- back office you get automation of processes. and you get -- and this automation leads to fewer jobs. sonali: how many jobs will be affected at the end of the day when you think about the impact of ai in issues like yours? stephan: it is hard to say but it is an ongoing productivity program. it is not one big effort, it is an ongoing effort. you have to be able to offset the increasing cost. everybody wants to get a higher salary at the end of the year. that and more has to be offset by productivity. sonali: stephan tanda, thank you

for helping us look around the corner. let's go back to the markets. we will get a check on those with abigail doolittle. abigail: if we check on what is happening on the markets, we will see if small fluctuations for the major averages. s&p 500 at a record closing high, but not all-time high. let's see whether that happens. amtek 100 -- nasdaq 100 up slightly moments ago. gains for the small-cap russell 2000 and the kbw bank index. last time i looked, new york community bancorp was up 10% or thereabouts. there seems to be a relief rally there. as for one interesting move, we also have vix for the s&p 500 and the volatility index for the small-cap index, also 2000, both of these are higher. typically when got stocks going higher you have the volatility index in the other direction. when they want to point out is the spread between these two annexes, suggesting that maybe

there will be more volatility at for the s&p 500, which has been in this complacent zone for such a long time. let's check in on the s&p 500. this is the s&p 500. you can see a nice up trend. this is the diamond pattern we look at. 90% of the time it breaks to the downside. you can see the momentum and daycare going down. one has happened, it has morphed into a cousin into that pattern. it could also break out into the upside on the other hand we may see a move down and the rsi is putting in a lower high, which tells you that today's record closing high, another all-time high, it is on worse momentum than a month ago. one divergence, speaking of individual stocks, this is amazing to me, nvidia, $1.82

trillion, overtaking amazon, $1.81 trillion rounded up. the ai crowd has nvidia sewing over amazon. sonali: the ai crowd has spoken and they've been speaking a lot this year. abigail doolittle, thank you. coming up, examining ai and its role in medicine. we will be joined by lloyd minor, dean of the stanford school of medicine, in "wall street week daily." this is bloomberg. ♪

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artificial intelligence with biology, and to take us through it we have a true expert, the dean of stanford medical school, dr. lloyd minor. thanks for being with us. synthetic biology, i'm just learning about this, the combination of tech with what you are doing in research. explain what this is an its potential. dr. minor that's right< david, and it is delightful to be back with you today. the potential is to have a totally new approach, more efficient and effective approach , to designing therapies and preventing disease. synthetic biology itself is not that new. it began decades ago with recombinant dna and being able to make human protein in microorganisms. that led to the biotech revolution. now when you energize and supercharge synthetic biology with ai, we are able to accelerate the process of discovering development of new and more effective therapeutic. david: this is large language model, as they talk about it how big a difference has that made

and what you have been doing already? you have been doing this for some time. dr. minor: it's a big rinse in that it allows us to sort through multiple -- big difference in that it allows us to sort through multiple, hundreds come thousands of possibilities in a much more effective and efficient way. rather than having to rent independent experience for every different scenario, we are able to make accurate predictions and hone in on approaches most likely to be effective. david: do we know whether it works? do we have any treatments that come out of this already? we could've had it as soon as we did but for ai? dr. minor: we are seeing the benefit with the design of clinical trials and the interpretation of data from clinical trials, and with approaches like one that can predict the structure of any protein from its sequence. we have sped up the process of developing some new therapeutics will yes, we are seeing the benefit. i think we are in the very early days. david: what about the data? one of the things we have heard

in other contexts is you need and access to a vast amount of data. do you have access to the data you need to achieve what you want to? dr. minor: i some areas like eta for proteins, yes. data for nucleic acids, particularly rna, a more variable molecule, we need more and are constantly getting more data. when it comes to the data on humans' responses can we have to be careful about the data and make sure we are protecting the privacy of patients. that always has to be our first job. david: how are you going about that? we know the president has an executive order about ai more broadly, not just for health care. are they heading in the right direction with the executive order? dr. minor: i think the exec at of order is headed in the right direction in that it prioritizes the protection of privacy, also prioritizes transparency about the algorithms to make sure that algorithms do not perseverate by us. all of us are deeply concerned

about privacy. one approach is that rather than letting our data out of our health care system, which we do not do, we bring the models in so that the model comes in but the data stays with the model in the system, not going out of the system. david: as an academic, the leader of a major institution, do you have a seat at the table, or is it being driven by the really big ai players? dr. minor: we have a seat at the table. there are dominant ai players, but they been very willing, indeed eager, to see the models used but used without having to own or even acquire the data that they are being used to interpret. david: what about the competition we always talked about between the united states and china? you may not think about that in terms of research, but in general, does china have an advantage in that they have access to so much data, they don't worry about getting access to it? dr. minor: data is important, but what is even more important is human capital. the expertise, the know-how to

be able to continue to evolve these models, to apply them in a responsible way. that is where we in the united states have an advantage and should continue to focus on developing, nurturing that talent through our institutions of higher education and for industry. david: let's talk about what could be -- this is speculating a bit, but if this all works the way you hope it works, what is it do for cancer -- what does it do for cancer? dr. minor: we have seen more advances in the diagnosis of treatment of cancer than in the previous two or three decades. we are just in the early stages, just at the beginning. the ability to engineer our immune system and use our own immune cells to attack and combat cancer, we are seeing that today. that is going to accelerate -- we are hoping the -- we are opening up a whole new frontier of cancer vaccines to engineer our immune cells based on the antigenic profile of a tumor cell. that is a whole new ballgame for us. and i think one that will be

very effective. libya year, three years, five years from now? -- will it be a year, three years, five years from now? we tend to overestimate what we can accomplish in a short period of time and underestimate what we can accomplish in along period of time. i'm optimistic with the future. david: how optimistic are you, how much more optimistic than before ai? do you think this is much more likely than not? at some point we really will have at least part of an answer to cancer. dr. minor: yes, i think we will have -- your keywords were "at least part of an answer." this is going to come incrementally. it is not going to be as if one day we wake up and we have a new therapy that prevents or combats, cures all cancers for the eye don't think that is going to happen. but we are already seeing efficacy in ways that a decade ago we would not have dreamed was possible. we are at the early stages, and incrementally we are going to make progress that transforms

our treatment of cancer. david: what is holding us back, if anything? is it money, people, regulatory system? if you had to change anything to speeded up, what would you do? david: unitas -- dr. minor: the united states traditionally has been the deepest and most reliable investor in biomedical research. we have to make sure that continues, because it's in our research institutions that the ideas germinate, it is where we train the people who generate those ideas either in academia or industry. you have to make sure as a country to remain competitive and sustain that support an increase in moving forward. david: this is all been very positive, very encouraging. but what about risks? we read from some people that there could be a superbug that this possibility in the wrong hands could generate pathogens that could really do damage to other countries or even the world. is there a risk of that? how do we protect against it? dr. minor: yes, there certainly

is, and in our initiative at stanford, there was a strong component focused on bio security. we know how, for example, to monitor the ingredients to go into making a nuclear weapon. unfortunately, that turns out to be -- fortunately, that turns out to be difficult. however, it is not nearly as difficult to engineer an organism or virus. we need accurate monitoring and surveillance systems and we need to talk about the risks to maker everyone has an understanding of what those risks are and what to look for. david: where do those protections come from? is it from the federal government? does it mean multilateral agreements? this is global potential. or will he come from academia? dr. minor: i think there needs to be thought leadership from all the sources you mention. certainly the federal government, certainly academia we need to build a common base of understanding of what is possible, the probability of that happening, and then what we can do to either deter it from happening or detect it early if

it is going to happen. david: dr. minor, great to have you back with us. dr. lloyd minor, dean of the stanford school of medicine. tomorrow we will talk to michael froman, president of the council on foreign relations, about what is going on in the world. friday on "wall street week" we will talk to bob steel about what will happen with infrastructure spending depending on the residential election. 6:00 p.m. eastern on friday. this is bloomberg. ♪

sonali: former president trump at a rally over the weekend saying he would leave european allies to fend for themselves against russia if they were done liquid on their nato membership obligations. -- were delinquent on their nato membership obligations. republican presidential candidate nikki haley addressed conference till statement on

bloomberg tv good >> this is a man who was wanted to destroy america and defeat america for years. i dealt with russia every single day. it is a mistake for trump to side with putin over our allies. we needed a lot of friends after 9/11. we better remember that. it takes a friend to get a friend. >> ambassador haley, i'm sure you have seen the comments from the likes of lindsey graham and marco rubio. do you feel like you are out of step with members of your own party? >> it is not -- the goal is number to follow the polls. the goal is to make sure you communicate what's right. we need to make sure we have an alliance that is strong. our whole goal is to prevent war. that is the main thing. you look at russia right now, the reason people should care about ukraine is because, one, it is a pro-american, freedom-loving country, but two, listen to what putin said. putin said once he takes ukraine, poland and the baltics are next. those are nato countries and

that emilio puts america had morbid -- that immediately puts america at war. this is about bringing more friends in a not pushing them away donald trump doesn't get that. that is what will creep us into war. we can't have that. our goal is not to blame the american people for feeling the way they do. it is to make sure we get our message out on why they should care and how this is in the best interest of america. for those politicians were refusing to say that, that is a disservice to the people they serve. sonali: republican presidential candidate nikki haley speaking earlier with bloomberg television. let's take a look at stocks eating highs and lows. applied materials hitting a 52-week high head of earnings this week. the price target is getting raised to $222. astrazeneca falling to a 52-week low after barclays trims estimates following the u.k. from a giant's on oppressive quarter. -- unimpressive next we will be speaking to the

chicagoblend ceo. stick with us here at bloomberg. this is bloomberg. ♪

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