matt: we are 30 minutes into the trading day. welcome to bloomberg open interest. sonali: coming up, and election reset -- an election reset. vice president kamala harris gears up while president trump contingency plans. matt: we will follow the money with mark douglas and talk strategy with former government official robert hormats. katie: markets rallying

nonetheless, looking beyond biden's exit and gearing up for a flood of earnings and economic data this week. take a look at where we stand this monday morning. there is green across the screen right now. the s&p 500 currently higher by 0.7%. big tech taking charge. you can see the nasdaq 100 up 1.4%. the bond market relatively quiet after all the volatility we have seen. the 10-year treasury yield down. sonali: donations have surged into the democratic party after president biden announced he is dropping out of the 2024 race and endorsing kamala harris. charles myers spoke to us earlier in the last hour. >> both sides are very well-funded. they will find a way to retool pretty quickly, but i think the bigger issue is you now have a democratic nominee and soon-to-be candidate, confirmed candidate, who is uniting the party, very well-funded, with a lot of enthusiasm, and very

important lee, will drive more turnout by women, young voters, and black voters. if i were in the trump campaign, i would be sweating today. i think she will give him a run for his money. sonali: our guest joins us from washington to discuss. another thing charles told us as investors are asking him more and more about what the harris trade is. what is the harris trade? how does that differ from the biden trade? >> i guess we will have to wait for specific details, but like you mentioned, into the weekend economists and investors and analysts have become increasingly interested in the trump policy agenda which was higher tariffs, lower taxes, and perhaps pressure to lower interest rates, and of course fiscal trajectory impacted will be that trajectory will -- trajectory will be impacted by all of that. now the question is will vice

president harris be a continuity of the biden economic agenda, or where will she shake it up? on the one hand of course, she can tout the biden administration in terms of industrial policy and investment in the new green manufacturing and other areas. we know the term campaign is critical of the biden administration on inflation and some of those same subsidies. i think we are looking at a wildcard when it comes to economic policy. vice president harris gets into her campaign. katie: a lot remains to be seen how much the harris policy portfolio is differ from what we saw under the biden administration. what is clear at this moment is this was a needed shot in the arm when it comes to fundraising. over $50 million raised just yesterday. talk to us about how much that factors into perhaps the harris campaign if she truly is the

nominee. enda: there is no doubt that looks like yesterday was obviously a very strong day for fundraising for the new harris campaign. have to see how it impacts or how it plays out or whether it impacts new donors coming on board, those from wall street or the broader investment world coming on board, telling vice president -- touting vice president harris. that will be an interesting signal to keep an eye out for. it depends on what policy signals we see from the vice president in the weeks ahead heading to the convention. domestic u.s. policy and let us not forget what the stance will be on the world of trade and competition with china. plenty of scrutiny there as well. matt: thank you for talking to us about the economic impacts of the biden policies. let's continue with matt bennett.

matt worked on both bill clinton's presidential campaigns and served as a liaison to governors. what do you expect harris to lead with in terms of her campaign? where can she point two achievements saying as the senator or attorney general, showing americans she really can bring the fight to trump and win this presidency? matt b.: with harris remember when she ran in 2020, a lot of her campaign was for the people, which is what a prosecutor says when she stands up in court. i am kamala harris, for the people. she is a prosecutor at her core. she is running against a fellow. so the matchup of the prosecutor against felon is what has a lot of people, including me, excited for this race. it will be short. she is running on the biden record, for better or worse. in my view, a lot of it is for

better. she is going up against a convicted felon and a liar and adjudicated rapist and sexual assaulter. she is in pretty good shape to take that bike to him. sonali: you think about the names thrown around as potential vice president picks for kamala harris, but when you think about the idea of her choosing somebody from a swing state versus somebody with more national recognition? matt b.: i started in politics way back on mike dukakis's campaign and he picked benson because benson represented texas. back then, texas was a sort of swing state that dukakis felt like he needed to win. it does not win often to pick someone because they will deliver their state. vice presidential nominees generally do not have a huge outcome -- impact on the outcome of the election in their state or elsewhere. what she needs is somebody who balances the ticket and gives an additional jolt of energy.

because i think what we are getting now, suddenly the race has shifted and trump is the old guy in the race. he is 19 years older than kamala harris. if she picks somebody who is her age, that will continue. katie: of course we have seen in the last 24 hours, not even that, we have seen a ton of endorsements coming from democrats, but we have not seen barack obama endorse harris. so far he has been quiet on that. is there anything to extrapolate from that, those who have not endorsed harris as the party nominee? matt b.: i really don't think so. i think there is two reasons for that. certainly for president obama and speaker pelosi, both are involved in helping convince president biden step aside. they are very mindful that yesterday was his moment. that was his decision. it was historic and monumental, and it came very painfully

because he was simply too old, not because he had not performed well in office. that was personal and painful for him. i think obama wanted to wait a beat before moving on to endorsing someone. also he wants to be the honest broker in the party and to ensure if there was any contest for the nomination he would not put his finger on the scale. i am sure he will endorse her soon. matt: the concern from republicans and some democrats as he is too old to perform in office as president. after we saw his debate performance, which really looked like serious cognitive decline, can he stay in the oval office, or does he have to step down as acting president and hands, the the rains now -- hands kamala the hands now -- the reins now? matt b.: he is perfectly capable of serving as president in the

coming months but he may not be capable of serving as president for the next four and a half years. that is a different calculus. i have not seen anything to suggest he cannot do the job until january. i think he can and it will be surprising if he was not president as we go into the inoculation. sonali: i am really curious. you saw trump come out during the rnc and chose j.d. vance as his vice presidential pick. a national think tank champion ching modern central thoughts. what do you think will win the country in terms of the vice president's values that she brings on board? matt b.: look, democrats start always in a hole. we have to win super majorities of moderate, self identified moderate voters. republicans have a much larger base. there are more conservatives than liberals in america, which

means when presidential candidates for democrats do not win 63% or more of self identified moderates, we tend to lose. so i think it is very important that only in her choice for vice presidential nominee but also the way she runs for president the next three and a half months the vice president understands the people she needs to attend to that appeal to our self identified moderates -- needs to appeal to are self identified moderates. katie: you think about her issues with the border, president biden basically saying she was in charge of the border issue in march 2021. a lot of people would say that has not gone that well. when you think about the harris campaign here, how should she message that? matt b.: well, technically of course he did not put her in charge of the border. he put her in charge of central american policy which had an impact on the border, but that is a distinction to be fair that is lost on a lot of voters.

i think what she has to do is continue the president's recent actions on the border, which are tough and smart and necessary. border crossings are massively, massively down. there is not a crisis at this moment. matt: putting in the policies ahead of the election for the boat is not what americans want. during his presidency, it was a real problem that he and harris seemed to do nothing about. matt b.: i would argue it was a real problem that had been many years in the making. don't forget president trump also experienced enormous urges at the border. our asylum policy is broken and congress has done nothing to fix it. the president and vice president both endorsed a tough bill that very conservative republicans in the senate put together. trump instructed republicans in congress to take it, and they did -- tank it, and they did. that is the only thing that will fix this long-term.

the president so far has gone to the extent of his powers under executive orders to do what he can about the border. there is not much more he can do unless congress acts. katie: really appreciate your perspective on this very busy day. our thanks to matt bennett. meanwhile, back to these markets and what is moving underneath the surface. we will do that with abigail doolittle. abigail: in contrast to the last week, we had the big tech trade working out. this could be some reflection of this reset 2024 presidential election because of course last week one reason big tech was falling was the idea that if donald trump was elected, their administration could potentially be negative protect. we don't know those policies at all, but piper center saying they might put up another big bank beat. tesla, microsoft, apple, lots of green on the screen. we have shares of reddit trading higher as they have struck a deal to team up with the nfl and

nba to boost revenue. up about 3% right now. up more than 90% since its march ipo. finally, it is not all great. we have the indexes off of their highs. the s&p 500 up half of a percent. it had been up 1%. they missed estimates as fewer people upgraded their wireless equipment, and priced to perfection, the stock into today still up about 40%. into today, up 40% on the october lows. surprised to perfection, they did not deliver that. matt: thank you so much. abigail doolittle talking to us about the stocks on the move. coming up, ann berry. why she thinks markets are in for a roller coaster ride this election season, the volatility to continue. this is bloomberg. ♪

matt: let's get now to high interest and look at what is happening around the world. china, investors by surprise with an interest rate cut overnight. they cut the rate to 1.7%. that is the central bank's first reduction in almost a year as the country attempts to prop up growth. an investment partnership with abu dhabi royal has been delayed as bridgewater grapples with the legal terms of an exit from the firm. one question is whether the billionaire founder may use the company's intellectual property after he signed a noncompete agreement with bridgewater. and the director of the u.s. secret service is about to face a barrage of questions from lawmakers who seem to want her out of the job. she is set to appear at a congressional hearing that will examine how the shooter behind the attempted assassination of

donald trump eluded security and wounded the republican nominee. katie: let's get a check on these markets right now. you can see the s&p 500 up about 0.7%. again, big tech leading the way here, reestablishing itself as a market leader. the nasdaq 100 about 1.3% up. 10 year yields currently down about two basis points. let's tie it all together now with ann berry joining us on set. great to see you. ann: thanks, katie. great to see you. katie: we were down 2% last week. we are up pretty significantly right now. the vix out of nowhere suddenly has a 16 handle. is this basically what the next four months will look like? ann: i think it is barely scratching the surface of what the next performance will look like. tech had a hammering when it looks like j.d. vance was being posited as anti-big tech. now that we are not sure which

way the election will go, some of that has popped back with vice president kamala harris being put at the top of the ticket. sonali: what would you buy on a harris ticket? ann: a harris ticket feels more to me like business as usual, but here is what i find fascinating. i do think there is truly a trump trade other than deregulation. it is very unclear because neither sets of candidates so far have come out with descriptive policy decisions in my opinion, at least not in detail. matt: he added j.d. vance to the ticket, and he seems anti-wall street. at least that is his current color. he is somewhat of a chameleon. an anti-big tech. -- and anti-big tech. ann: this is going to sound cynical. anti big money for wall street and big tech until he realized they want to get some of the money behind them as it gets closer to the election so i am

not convinced that what is said in the run-up to the vote is going to happen. we have seen people threaten to go after wall street and big tech before and it has not materialized. katie: a lot of what is being sent not turn into policy. let's turn into a known unknown, talking better earnings season. it has gotten a little bit lost in the conversation, but big tech kicks off this week. you think about this interesting juncture we are at in the markets. now we will get a look at the fundamentals how do you -- fundamentals. how do you think it will go? ann: all of the ai euphoria you have seen, at some point the market was going to say the vision is great, now show me the numbers, show me the money. how is it impacting profit? there has not been a lot of really concrete wins announced or examples. if they do not come out of earnings seasons, the companies might start to flush bad news in this new cycle. sonali: i think about pure

trades. what do you like in this environment to buy and sell? ann: there is a long-term one which is the trade desk. if you look at what happened with netflix lastly, he met with great growth in terms of new subscribers but revenue underperformed. so we have more users being under monetized. that is the trade desk -- that is where the trade desk can win over long-term. more pressure to monetize their user base. matt: elon musk is giving $45 million a month to a trump pac. j.d. vance was working for peter thiel. so do you like tesla and palantir? ann: i put palantir in the bucket of defense. let's start there and i will come back to tesla. last time we saw that the trump trade was very favorable for banks, energy, defense stocks.

palantir i think would stand to gain in that environment. tesla is a different one. tesla has much more fundamental issues. gm and ford going off china taking a share. president trump is not the greatest advocate for green energy or a move to ev so i am neutral on tesla. katie: he had some pretty harsh comments for ev's. the problems that tesla is dealing with feel like car company problems. interesting to see how elon musk manages through that. i want to go back to what you were saying about ai. so far, it feels like ai has been a margin compression story. i am wondering, if we do see some of those other names start to falter on showing up in the numbers what the ai spend has been producing, does that filter back through nvidia perhaps? ann: it could, but i think nvidia will stand to benefit and that will still be the dominant player for the more sophisticated chips out there. i don't think we see nvidia get hit immediately.

i think software companies will be more easily able to show that investment in ai is translating into active against. so the margin compression may turn relatively quickly. it is places like social media platforms i worry about. sonali: it is difficult to separate the political from the earnings cycle right now, but there is an aspect of this. you think about alphabet and its suppose a $20 million deal, both in a republican administration and a democratic administration a deal like that could be contested. ann: it could be contested. j.d. vance i think at a bloomberg event in d.c. came out in support. he said, i am in favor of preventing some of these big deals. that being said as a side note, you cannot separate the politics and tech. it is the trump show at the end of the day. what trump decides will fly. the deal i find interesting because it is a pivot from ai to cybersecurity.

in alphabet's narrative, it is a very expensive deal. 24 times revenue depending on what you read to me. it is critical. sonali: a lot to keep an eye on. thank you for joining us on set. we are taking a look at the companies making the most buzz today. we will talk about the social climbers, next. this is bloomberg. ♪ (♪♪) (♪♪) sandals rhythm and blues caribbean sale is now on. visit sandals.com or call 1-800-sandals. sales tax automatically. avalarahhhhhh what if tax rates change?

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katie: it is time now for social climbers, companies making waves on social media this morning. delta apologizing for canceling thousands of flights during the busiest travel weekend of the summer so far. many of its systems failed following the catastrophic crowdstrike outage on friday. the ceo blamed the impact on a number of significant functions that rely on microsoft's windows operating

system. crowdstrike continuing to be weighed down by friday's fallout. at least two firms downgraded the stock after the outage, which affected 8.5 million devices that rely on microsoft's windows system. finally, we have defamed don't make a krispy kreme. sold its majority stake in insomnia cookies to private equity firms. the deal has an enterprise value of $350 million which krispy kreme said doubled since it bought insomnia -- since it acquired insomnia cookies. matt: all right, thanks very much. katie greifeld with your social buzz. what do we call that? social climbers. got it. coming up, mark douglas joins us. he will tell us what he is expecting for campaign spending this election season that could be as much as $16 billion from

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matt: total political ad spending in this country is projected to reach a record $16 billion this year. our next guest says trump and harris are not getting enough bang for their buck. mark joins us now to talk about that. and also the streamers and google, but i wanted to start with this, it is an area that you know everything about. it is a massive amount of spending for political ads, but i do not see them very much. mark: right, exactly. i don't either.

put it in this perspective, that is the equivalent of 10%, or even a bit more, of meta's revenue. these ads are generally on tv, but do you see them? like everywhere? roughly $60 billion may be closer to $70 billion is spent on tv -- maybe closer to $70 billion is spent on tbs. i do not see them. i do not see the effectiveness of them. i don't think any of the political campaigns are getting their money's worth at all. and all to move the needle 1%. sonali: just how much was used by the biden campaign alone, 93% of the money raised in june spent and he is no longer running. where does the new money go? if you can do it all over again and decide where the money goes, it is targeted? matt: how do you see it?

mark: we have a big amount at stack will -- stagwell, which dominates two of the big political agencies. no one talks to each other under the same umbrella. one, how are they going to raise the money? trump has been crushing it. now democrats have to kind of get that machine restarted. and they have very little time. i think a lot of money will be spent, like we said. like it will move the needle maybe 1%. to move it the 8% that is needed right now seems like a very big task and would cost more money than i think people are ready to donate. katie: let's talk about that a bit more. so there is a lot of money being spent. it is not being spent very efficiently. it seems like the eyeballs are not where they are being broadcast. what do you do? do you put ads on tiktok? how do you capture the younger

voters that the parties care about? mark: that is the move. basically, the campaign literally just almost burning dollars broadcasting them out, and they have to get much more targeted at the voters they are trying to reach. and the way to do that is using social media, doing paid marketing on social. remember, a few years ago meta got in a lot of trouble for all the political ads on meta so we do not know whether appetite is to allow that. on television, my company, we do performance tv. i do not think the political camp, these parties are ready for it. this election cycle, it will happen in the way it has been done in the past. just ads. spend as much money as you can and hopefully we learn for the next one. i don't see it happening in the next three months. matt: in terms of streamers, we

got netflix results at the end of the week. really impressive subscriber number but i think i and all of us do not see ads there because we pay for a higher tier. on hulu, they sneak ads in but because of that, i watch less of it. how will we see advertising in a streaming world? mark: amazon has been crushing it, and there is a lot to learn their from netflix -- there for netflix. amazon is acting like a tech company when it comes to advertising on television. that is why they moved their entire customer base to ad supported in basically one day and netflix is acting like a media company. the irony is netflix literally launched in silicon valley. its roots are a tech company, and they need to go back to that for advertising. and when they do, i think you will see another big round of growth for them. i think they reported $700 million in spend, which is tiny in the grand scheme of things

against i think it is roughly $30 billion in total revenue on subscriptions. i think they can make the ad supported tier be 50%, even double the current size of the company. so as investors, i am in it for the long haul. i am a big netflix man. being critical now but be a tech company again. sonali: you are also talking about more and more companies, amex, insurance companies looking to boost marketing again. mark: yeah. sonali: who is the beneficiary of all of that at the end of the day? streamers or what? mark: the big trend has been retail media. that is why you have jpmorgan chase advertising a new advertising product. t-mobile has a big advertising product. retail media is better targeting. using data relevant to purchases

and stuff like that. at the end of the day, amazon is doing a great job. nbc is doing a great job with the olympics this year. i think they have really gotten their groove where they are using broadcast as an very targeted for the olympics and crushing it. probably will be the most successful olympics in history. again, netflix has all of the chips to play this game well, but they have to go back to being a tech company when they play that game. matt: we have google coming out tomorrow. you have not mentioned alphabet. what do you expect from them, and where do you think we will see the biggest moves? mark: i don't expect google to have anything spectacular happening. i think it is going to be kind of -- i was going to say a throwaway quarter, but no one is going to remember this past quarter for google. they have a lot to figure out on ai. i think they are in a lot of stress on that. when i work with the people of

the company, their tone is they are not as arrogant. maybe that is the simplest way to put it. they have been humbled. that is a really good way to put it. and so i think as they use that humbling to execute better, that will hopefully see a revived google in a few quarters, but right now, it is kind of more of the same. matt: great to have you on the program. thank you for joining us. let's get a check now on the markets with abigail doolittle. abigail: we have a pretty solid gain after last week's decline for the s&p 500, up 0.8 percent. this is the overnight picture of the s&p 500. upon the open yesterday evening after the somewhat shocking and yet expected news of president joe biden dropping out of the presidential race, not up so much not up so much. -- not up so much, a little bit bumpy, and then up at the highs at the open. i think this has to do with some yen strength, which means the

trade coming off in terms of the dip down. now there is a bit of an inversion there. as for the strength it sunk about what stocks are driving it? big tech. take a look at apple, microsoft, both up 1% or more. nvidia up 3.9%. paper center saying they expect them to put up another big quarter. they will be reporting for many weeks yet but that expectation helping. that stock among all of these stocks down in a big way on the "trump trade" now as we have the possibility of, the harris -- of kamala harris, but it seems as though that side of the trade is unwinding as people try to vet what a harris-trump election could mean and look like. finally, if we take a look at u.s. high-yield, spreads are tightening -- high-yield spreads are tightening, and that would support what we saw with

the big companies higher as well. it is a risk on day. katie: thank you so much. coming up, we will take a look at how a change in the white house could affect u.s.-china relations. robert hormats joins us next in today's "wall street week." this is bloomberg. ♪

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abigail: this is bloomberg open interest. coming up, and interview with debbie at 4:00 p.m. new york time -- an interview with debby soo at 4:00 p.m. new york time. katie: it is time now for our daily "wall street week" conversation, and today we are taking a look at what president biden's decision to withdraw

from the presidential race means towards u.s. policy with china. here's what bloomberg guests to say so far. >> what is clear and undisputed is there will likely be a lot more trade wars. we will likely see tariffs being used as a geopolitical new weapon. >> the fact is there is going to be a much tougher relationship regardless of the administration with china. >> president biden has been more effective i think in terms of china in ways that.it matters president trump -- ways that it matters. president trump is promising a fla tariff. it is important for u.s.-china relations. katie: i am pleased to say bob hormats joins us along with david westin. a lot of questions in this election cycle but one of them is foreign policy. david: bob, is great to have you

here. you know china well and spent a lot of time with them. there are a lot of development all of a sudden. give us your sense. what do you think of the u.s. election and how it may affect their economy? robert: i think all of these commentaries are right. they will probably look at the future as being sort of fraught with trade wars and particularly trade and investment that relate to high-technology. that is their goal in china, to surpass us in the high-end technology, quantum, ai, a whole range of things, both for economic reasons and national security reasons. they are trying to figure out what the administration would do in that respect. kamala they do not know much about. they are scrambling trying to figure it out as are many americans. with trump, they are probably of the view that trump has not

necessarily said very much about taiwan yet. he said they should pay for their own defense, which he said about nato countries as well. beyond that, not very deep. the thing about this election that plays into the china narrative is it is totally confusing. one of their major goals internationally is to demonstrate that their system is more stable and more predictable than ours. that democracy particularly as it is now being practiced in the u.s. is very fragmented. it is angry. it is not stable. it leads to things like attempted assassination's which you -- assassinations, which you do not see in china, partisan confusion and rancor, and the chinese are going around developing countries saying our system, which the americans have been so negative about, is actually more stable, more

predictable. you can count on us. can you count on the americans, on the next administration to be your friend, your outline? can you count on them to build alliances as opposed to undermining them? david: president trump with tariffs on china, including 60% he talked about. as far as you know, do they take that seriously? do they think people really impose 60% on tariffs? robert: that is the area he has talked about china. he has not talked about that from a strategic point of view, which he has on ukraine, but from an economic point of view. i think the answer is they don't really know whether he is simply negotiating with them. he says he will raise tariffs for everyone 10%. he is going to raise tariffs on china 60%. at one point, he said 100%. i think they probably think that is a negotiation rather than -- we should not forget we depend

on china for a lot of pharmaceuticals. a large portions of the components of american pharmaceuticals come from china. the american farm community depends very heavily on the china market. a lot of companies depend on the china market. if the united states does these crazy things like 60% tariffs or these huge increases, it creates unpredictable which causes the chinese to be concerned. the chinese can sit there stoically and retaliate. there are a lot of big clients of trump and big constituencies of trump who will be extremely unhappy and highly disrupted if we got into a trade war with china. plus all the countries in the neighborhood that are supposed to be our allies. katie: i am also interested to hear your thoughts on the semiconductor industry because it feels like that is where a lot of the u.s.-china tensions have been playing out. you think about president biden, one of his signature pieces of

legislation has been trying to bring to production back to america. you think about what the conversations in beijing might sound like when it comes to a change in leadership. how much of the conversation is focused on semiconductors? robert: a lot. the chinese are heavily dependent on semiconductors. they are still, like we are, heavily dependent on taiwan, taiwan semi. this is something they have to bear in mind when they think about taiwan. but they are never going to, at least not in the near term, surpass taiwan. in areas like nvidia and other american chip companies, they will not be ahead of us anytime soon. i think the best thing we can do is to -- and

vance criticized taiwan. even the highest end. what we need to do if we are going to be serious about competitive wars with china or competitive aspirations vis-a-vis china and theirs vis-a-vis us, we need to build a semi conduct -- a semiconductor industry worthy of the name. we designed them but do not make them very much -- we design them but do not make them very much. i think biden is great in terms of putting more money and but it is nothing compared to the size, multibillion some dollars. taiwan has been in the game. they have been in the game for decades. we will have to put a lot more money in and train people

in that area. we are not really looked at by taiwan as a serious competitor. china wants to be a serious competitor, both for reduced dependence on the u.s. and they have more leverage on the u.s. and also to be able to be in a position where they do not have to depend so much on taiwan if they want to take action against taiwan. but they are not there yet and will not be for a while. katie: it will be fascinating to see how that involves. what i want to go back to you were saying that china likes to present an image of stability -- project an image of stability. the commentary i have read is there is not too much of a departure from what we have seen already, but what was your take? robert: that is exactly the right conclusion, that they will not change things very much. there are two things that i think are worth bearing in mind. one of them was not discussed as much and one was. they used to have a theory of high-growth.

they were really preoccupied with high-growth. they are not as preoccupied anymore. whether they quote 5% or 4.5%, they would like 5% but they will not put huge amounts of money into highways or bridges, which they did before. the big money, the infrastructure money so to speak, is going into high-technology. that is where the capital is going. the one thing they have to do better is recognized the most evident companies in china for the most part are private sector companies. they are 60% of chinese gdp, and they are a huge amount of competitive strength with a lot of innovation. so they will have to do more to free them up and give them more opportunities and not lean on them so much. similarly with the big companies. they have this notion of control. they do not like these companies that they don't have full control over or substantial control over.

the other thing that was not discussed but is very important is that china and asia are now playing a much greater role in european strategic and economic issues. china with trade in europe. they have played a greater role, a supportive role, not military, but a supportive role for russia and ukraine. no asian country has done that since the 1200's. this is the first time. in world war ii, japan's activities were primarily in asia. now you see china not only playing a greater role in asia the first, second, third island chain building up the navigation of taiwan with their billions, but they are also playing a role in europe, which asia has not done in the past. in turn, nato is now getting a

little bit more actively involved in asia. this is a wholly different area, and trade is a key area. china wants to trade more with europe because it is not treating as much as it would like -- trading as much as it would like with the u.s. david: the mongol empire. robert: asia has been out of the european strategic game for 800 years. this is the first time they are back in that game. i don't know the exact way they are measuring it but they are. katie: we have to leave it there. great speaking to you. that is bob hormats as well as david westin. this is bloomberg. ♪

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matt: let's get to the trading diary. this is what you need to be watching today and this week.

kamala harris is set to speak in 30 minutes from the white house. that will be live on bloomberg television and on the bloomberg terminal. tomorrow we get big tech earnings from tesla, which makes the big truck you are looking at their, and alphabet -- there, and alphabet and google. wednesday, benjamin netanyahu addresses the u.s. congress. thursday, u.s. gdp followed by pce on friday. interesting to get back to markets and earnings after all of this political drama. katie: big tech earnings and pce, these are the types of weeks that normally we live for. but of course, politics has been taking all the air out of the conversation. sonali: let's see if we can finally get back to the numbers. i am a little doubtful. i think political rhetoric will still steal the show. remember, we are flying near all-time highs after last week. matt: gina martin adams says the

rotation will happen in earnings. the s&p 493 will grow for the first time in seven quarters. watching closely for that. katie: we will talk about it tomorrow with our fantastic lineup headlined by and walsh -- anne from guggenheim -- anne walsh from guggenheim. this is bloomberg. ♪ and get the permanent gutter solution that ends clogs for good. they took the time to answer all of our questions. they really put us at ease. end clogged gutters for good. call 833.leaf.filter, or visit leaffilter.com today. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now.

>> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with caroline hyde and ed ludlow. ♪ caroline: from bloomberg's london headquarters in san francisco, this is "bloomberg technology." coming up in the next hour, markets entering uncharted territory as president biden drops out and passes the baton to kamala harris. who in tech will pp