>> we are 30 minutes into the u.s. trading day on this tuesday, april 2. tesla's bad year gets even worse with the eeev maker suffering its first year-over-year sales drop since 2020. vehicles deliveries fell well short of investments. tough times at the gym. this year did not deliver the to post new year's pop gyms usually enjoy. you have weight loss drugs posing stiff competition. the crunch fitness ceo joins in just a bit. the final chapter of bob iger versus nelson peltz, l street journal reporting disney is leading in the product -- proxy battle.

we will bring you the latest on the showdown in the house of mouse. i'm katie greifeld in new york, welcome to bloomberg markets. there is a lot of red on the screen behind me. you can see the s&p 500 off by 1%. it does not help tesla absolutely dropping like a stone this morning which we will get to. even worse if you look at the nasdaq 100. your big tech benchmark off by 1.4%. all the while you have a selloff in the bond market as well. you can see the 10 year treasury up eight basis points. we are just about at 440, the highest level of 2024. we have some breaking employment data in the form of jolt. mike mckee is here to break it down.

michael: if you want support for the idea the fed will be on hold longer. this is february data. the number of job openings actually rose in february according to the bls in part because the number in january was revised down so what we end up with is 8 million, 756,000 job openings in february compared with 8,748,000 in january. the initial report was 8863. it's a revision that makes the number higher. the quit rate is unchanged. 2.2% which is been the same for about four months now. other members out right now, 1.4% after a negative 3.8% decline in the month of january. durable goods as part of that 1.3% that had been reported as

1.4% but still fairly strong. none defense, the stuff that goes into gdp unchanged from the initial release at 7/10 of a percent. we saw that yesterday in the ism manufacturing numbers and we still have a lot of jobs to be filled. katie: we have a lot of jobs data to get to this week. we have adp and then of course the all-important nfp. what sets us up for the rest of the week? >> it suggests the possibility of strong hiring because at this point there is still a lot of jobs open. we don't know how many are actual jobs and how many had been filled but we do know the average was about 5.1 million in the 10 years before the pandemic so we are about 3 million over that which leaves you a big hole to drive a lot of jobs through. katie: we will be talking to you a lot this week.

our thanks to mike mckee. let's bring this conversation to the markets. we will do that with fl putnam investment chief market strategist joining us now. let's talk about what we are seeing in terms of rate cut pricing and in the equity market because it is an interesting dynamic you came into the year with markets pricing six rate cuts. now of course you have all those rate cuts being paired back. i think we're at somewhere between two and three price 10. we are sitting on year-to-date at 10%. when does that start to matter. when does that start to flip. >> i think you've put your finger on it. that's exactly what we are watching. earlier in the year the market is expecting six cuts and the fed was saying in the december dot plot that's far too dovish, we are more likely to have three cuts. for the last three year to

year's the market has been more right and the fed is caught up to the market. this time the market has caught up to the fed and in the last three months you seen the market price it down from six to three and now even below three. the key reason for that is the strong jobs data you were talking about. every measure of the labor market has shown incredible strength over the last several months whether we are looking at nonfarm payrolls, labor force participation, at average hourly earnings. that means inflation will be higher for longer. rates will be higher for longer. and this rally as you started off by saying of 10% this year so far which is a good year in a normal year is too far too fast. we think there will be volatility between now and the end of the year as the market digests the fact that rates are likely to be higher for longer. what is can it cause the market

to start to care about that, it could be anything. and markets are vulnerable as they currently are it could take any very small thing whether it's a hot cpi, pce or other information. but something will trigger it and the markets are at risk of a pullback in the near to medium term. katie: jp morgan they weighed in in a note writing equities are ignoring the most recent pay that of a pivot which might be a mistake in their view earnings will need to accelerate in order to really plug the gap between rate cut expectations and what the s&p 500 is doing. do you view that is likely earnings will accelerate from here further enough to justify what we are seeing. >> i think it's unlikely. you're absolutely correct and the folks at jp morgan as well that an acceleration in rates earnings estimates would justify the potential for market

multiple expansion. or allow the current multiple to maintain. if you look at 2024 earnings in 2025 earnings estimates. they haven't moved since last summer. so it is really hard to see what is going to cause those estimates to increase for the prior year and a half before that we saw continued increase in earnings estimates as an operating leverage from that inflation driven topline acceleration continued and was unexpectedly strong. we do not see that going forward. earnings estimates have not budged. for 2025 not budged. if earnings estimates do not increase i think it is difficult to maintain the current multiple much less the multiple expanse here. >> let's talk about what the rest of the year looks like. it's only april 2 but it is never too early. you right you are looking for mid to high single digit equity returns in 2024 and we are

already there if you look at the s&p 500. how do you expect the course of this year to go. are we just get a flatline or what does volatility look like? >> what's most likely is we see rotation among different sectors in the large-cap universe. i don't know that it broadens out to the small-cap universe. small-cap estimates of declined so i wouldn't go so far as to say the russell 2000 is likely to be where the money goes but i think after the very narrow market we saw in 2023 and so far in 2024, of large-cap market can rotate. you see some areas like health care and energy where the stocks have been pretty poor and the multiples are not that demanding so what you see is the overall averages might maintain where they are between now and the end of the year with some up-and-down volatility. what you do see some broadening out in the large-cap space some of the sectors left behind so

far. certainly the numbers we saw from tesla would support the fact that the magnificent seven is not a monolithic share gainer. >> absolutely. you've seen some dispersion even in those seven stocks. before i let you go, talk to me about cash. how does this perform in this environment. does it remain hot. >> all of us have spent the last 15 years up until the last year and a half thinking cash is trash and clearly that's no longer true. particularly if the fed is guinness day higher for longer in the short term overnight rate , then cash is a very viable investment alternative and we think it looks better than fixed income in certain respects because of the yield you are getting today. >> a lot of people would agree with you. judging on money market funds, stay with us we will take a quick look at what's moving underneath the markets. we will do that sitting to my

left and bitcoin is hurting. >> we are seeing bitcoin down since mid-march when it top that 73,000 level. and often when we see bitcoin fall we've seen a lot of crypto linked stocks falling so i'm looking at coinbase down 4% and a number of other minors, marathon digital, all down about 4% range. the idea is perhaps if the fed pushes back on the day. that won't be back for speculative assets like bitcoin. if you look at bitcoins year-to-date gains its up over 58%. there's a lot of momentum in the etf space despite some of the flows cooling down from the initial month of that launch so coinbase down about 4% here. >> important context you add there. that's on the back of 50% in 2020 insurers having a pretty

tough morning. >> humana one of the largest u.s. insurers down a most 11% this morning. this comes after u.s. regulators did not boost payments for private medicare plans like the industry had come to expect. so the biden administration announced u.s. payments to medicare advantage plans were prime -- climbed. but what typically happens is the administration announces a proposed plan in january and they boost about number, the spring announcement. it seems like the street is not taking that well. we are seeing competitors also falling this morning on the back of that lesser than expected food -- boost. katie: if you think that is bad, biggest drop since 1987. emily: since black monday. that was a really long time ago.

the earnings, for the fourth quarter actually beat expectations when it comes to revenue, but the street seems to be focused on the full year sales guidance which was lower than consensus. pvh is the owner of calvin klein, tommy hilfiger among a bunch of other retail brands. noting that difficult macro economic backdrop in europe could be weighing on the company but overall it is unclear exactly why the stock is down that much. 22%. we saw jp morgan cutting their price target but they still have an overweight on the stock among a lot of other overweight on the street. >> it will be interesting to see if this turns into a buying opportunity. the actual earnings were not that bad. just the outlook that gets you. thank you for joining us. tesla shares sinking after seeing its biggest sales miss since the early days of the

pandemic. more on the eeev maker's troubles next. this is bloomberg. ♪

katie: tesla shares currently down about 5% after huge deliveries miss. one of the worst performing names on the s&p 500 today and the worst performer on the year. ed ludlow joins me on set right now, talk to me about the deliveries miss. what were the dynamics that led to that. >> tesla was saying these were supply-side factors. we remember what happened in the red sea. tesla was one of many that had to divert parts shipments and

assuming the delivery of vehicles that were built in berlin or in china. tesla was also impacted by the fire the berlin plant, but i don't think anyone is buying that. this is the biggest miss the tesla has had relative to bloomberg consensus on record. we know the factors that were at play. higher rates impacting the consumer. competition in markets like china. overall decelerating ev demand. as one analyst said, elon hurting the tesla brand in the quarter. >> there's a lot of factors. let's focus on the demand part. if this is a demand issue in addition to the other headwinds you outlined but how do you fix a demand issue. >> it's interesting to see the strategy, tesla heavily discounted and incentivized in north america in particular

beyond the available federal tax credit incentives at the end of the quarter. as they always do to get a real bump in deliveries in the final few days. one of those people the least of the model wide. they did exactly what they said they were going to do. in china there's an interesting comparison were tesla raised prices again. they told us they would do that at the start of the second quarter. they've doubled down on incentives and effective price cuts. tesla was the leader in this marketing using price as a lever. they cut prices and raised prices in the net end price is important but it wouldn't be surprising for them next quarter to also lower the price will raise the price particular wall rates remain higher. >> may be expect more price adjustments of courses as tesla plots a path forward. they actually beat on their delivery targets talking about

much smaller numbers here than tesla. but still beating the stock is down right now. >> i know the company pretty well. for me this is a story about management team learning corporate guidance. in the last quarter's earnings they said deliveries will be down 10 to 15% and our production will be impacted because we are introducing new parts reestablishing our supply chain and they gave that guidance and quite comfortably beat it on deliveries. there is still constrained. they planned to downtime this year and like tesla there is a big demand. they go into production 2026, the market for $80,000 pickups and suvs it's not clear who is still buying those. they talk about doing a lot of test drives and demos did outperform, how long that lasts we will see. katie: a lot of big questions.

ed ludlow thank you so much. let's get back with chief market strategist at fl putnam investment management. before the break we were talking about tech and its potential rotation but you see coming. at this point would you be among those stepping away from tech lightening up even astech continues to leave the market. ellen: i do think it makes sense to trade tech in particular -- trim tech in those areas that have done well. you look at nvidia but also even outside a lot of the chipmakers a lot of the semiconductor capital equipment companies are up 20, 25, 30% or even more this year and now they are fairly valued. when we started the year they were somewhat cheap. i think you can tie that back into the rivian and tesla story. a lot of reason why those tesla

numbers were lighter had to do with rates and the impact higher rates have on capital equipment and capital equipment purchases. rates affect demand for hardware and i think you will see the same thing in tech not as much for cars or houses but you see the same impact and given how far the stocks of run it makes sense to cut back on some of them. there are areas that are a bit more attractive, some of the software names, some of the service names look interesting. in general tech has run pretty fast. we would be taking some money off the table. maybe some industrials that haven't done so well. >> let's talk about with the catalyst is for those under loved areas of the market would be. health care in particular we talk about health care all the time especially in the context of glp-1. what were the catalyst for the sector be to rise back up and take the leadership.

>> i don't know about taking leadership. i think it will chug along and do ok. it will be like the tortoise in the tortoise and the hare fable. it can chug along. it is fairly inexpensive so you can look at some pharma companies. lily has done well and novo nordisk is done well. they pay nice dividends and you can buy those and just hold them and it will stabilize. when i say they will take the leadership mantle i don't think they will be up 25% from here but i think they can outperform some areas. the insurance area is one to be wary of. it is not just the medicare reimbursement rates, but just generally inflation for health care reimbursement becomes more and more expensive for health care and that is going to reduce demand for health care. i would be a little bit more cautious on the insurance hospital front. some of these look interesting. >> biotech is always interesting

and of course once those drug trial results roll through if you're looking for volatility one of the places to look. staying away from insurers but health care broadly definitely see your point there. where would you avoid? you mention you are trimming tech and positive health care. where when you look do you see i don't want to be there. ellen: i'm still cautious on regional banks and smaller banks because of the exposure to commercial real estate even though everyone knows the commercial real estate is likely to be problematic. it's still not reflected in the regional bank valuations. they are not that cheap and this takes years to unfold because the leases are so long-lived that it takes a long time for the buildings to have lower rental rates and for pricing to come down and the banks intern

draft to seize that. i think it has a long tail so i would stay away from regional banks. there are also some areas that have growth and i'm more cautious on. you look at something like verizon and at&t where you have areas that are just not growing as people are cutting the cord and if you have negative growth or very slow growth it's hard to make a lot of money there. i would stay away from some of the very slow areas that are facing secular headwinds. katie: really appreciate your time this morning. our thanks to the chief market strategist at fl putman investment management. we will take a look at the companies at our social climber sum it up next. this is bloomberg. ♪

>> time for social climbers. the stocks making waves on social media. google will be deleting millions of browsing data as part of a settlement for a lawsuit that accused the company of improperly tracking the browsing habits of people who thought they were doing so privately. citigroup implementing a fresh round of job cuts playing off just laying off employees as it undergoes a planned restructuring. this reorganization is designed to streamline the bank's operations by eliminating 20,000 roles as announced by ceo jane fraser. finally we have petco in the doghouse with bank of america getting a double downgrade to underperform. also a price target/.

bank of america saying the company has lost much of its competitive bite. coming up we will be speaking with jim rowley, the ceo of crunch fitness. this is bloomberg. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. not all caitlin clarks are the same. caitlin clark. city planner. the answer is

just like not all internet providers are the same. don't settle. you want fast. get fast. you want reliable. get reliable. you want powerful. get powerful. get real deal speed, reliability and power with xfinity. she shoots from here? that's kinda my thing.

katie: if you skipped the gym, you're not alone. foot traffic to major gems actually was flat this year. that's according to placer.ai, which tracks location data through mobile phones at the top 10 chains. i'm pleased joining us now is jim rowley, the ceo of crunch fitness. let's talk about that data, the foot traffic flat from january 2023. when you look at your business and the foot traffic going into crunch did you see a similar

softening? jim: no, we were up 21.1%. we have led the industry in terms of foot traffic, which i'm very proud of. katie: what do you think led to that dispersion some -- dispersion? planet fitness not seen the boost you would typically expect coming out of the new years holiday. what did crunch fitness see? jim: our members are more active than planet fitness. our members are more fitness focused, goal oriented, so forth. i also think crunch offers different amenities under one roof. as the boutiques closed during covid and people stopped specializing in joe's going through a soulcycle class or stretch class and so forth, crunch offers those things under one roof. most of our facilities. it's attraction for young, strong, social, our target market of 18 to 34.

they work out more than four times a week, which is twice -- it leads the industry by two workouts per week. katie: young, strong and social is a good description. let's talk about the price sensitivity when it comes to that cohort, the 18 to 34-year-old. i was looking on the website. i can get a month-to-month subscription for about $100 a month. how does the decision-making process look around your pricing? for a lot of people that's a lot of money. jim: a 10 -- $100 price point is for the big urban centers. the others are $9.99 to start. we offer prices based on geography. it is the cost of commercial real estate, the cost of doing business. in new york it is just more costly place to do business. the prices are increased. we have memberships as low as

$65 and some of the deep urban centers. the $100 is for the all city crunch. you can move from location to location. if you live on the west side and you work downtown, you can have gems in both areas. katie: it deftly makes sense it varies by location. new york, it feels like everything involved with living is more expensive. let's talk about where crunch falls in the industry. you have two models. you have a low-cost membership, high-volume. planet fitness for example. $10 to $20 a month. then you have equinox which is much more expensive, more of a lifestyle. it feels like crunch is operating in the middle. is that where you want to stay? jim: i would not say we are in the middle. we are on the high-value low price on one end, are $10 base membership. about $100, $125 less then

equinox and lifetime in places like new york. we are sitting just below those premium gyms where they are more about lifestyle. we are more concentrated on fitness. we like that price point. katie: i'm curious about the cost of doing business. you mentioned commercial real estate. in your note you sent over you have leased more commercial real estate than any other fitness company in 2023. when it comes to your physical footprint how are you feeling about that? the commercial real estate sector it's a headache and a worry for a lot of investors. jim: yeah. it's interesting because i keep telling everybody who will listen bring us every 20,000 to 40,000 square-foot box that's in a good sector of town. we don't have to be on maine and maine but that's preferred. -- main and main but that's

preferred. we are trying to find as many sites as possible. we are finding it relatively difficult. our appetite to grow is significant. our franchise owners are doing a tremendous job. we want more real estate. katie: it's interesting to hear that fresh perspective. how many gyms does that translate into? what is the target in terms of how many gyms you would like to expand into? jim: this year or in total? katie: let's do both. jim: we would like to open 75 this year and north of 100 year, which is two per week. we believe we have wide space north of another 2000 opportunities in the u.s., not including international sites. katie: you will have to tell us how that's going. let's talk about one of the hottest topics of this year and last year. that is weight loss drugs.

the ozempic effect has been felt by almost every industry, whether you are in snack food, clothing. how is it being felt in the fitness industry? jim: i don't know that we have the full gravity of it yet. i think it is starting to get some traction around it. we are open to everybody wherever they are in their fitness journey. if this gets more people considering exercise as part of the multifaceted approach -- i don't think it is just an injection. it is not just a diet. you have to exercise. the drug does have a muscle wasting affect. we are happy to hear that doctors are encouraging people to get into the gym before they start glp-1s and continuing to work out to maintain muscle on the drug. we are open to everybody wherever they are in their fitness journey. katie: rather than being

necessarily a negative people say i can just take these medications and then i have to go to the gym. it could turn into a positive for you as maybe they lose all their muscles on the process. jim: right. a healthier population is more inclined to exercise. this is there start. it's a catalyst for those people in that category. we are here to meet you where you are. we have personal trainers i can help you. we are learning about the science of this and there are micronutrient --a lessening of micronutrients. we sell protein powders and things that can help pick up the micronutrients that can be lost. katie: really enjoyed the conversation. hope to continue it soon. our thanks to jim rowley, ceo of crunch fitness. interesting conversation on the state of the fitness industry now that we are past the new year's rush. let's get a check on the markets

right now. we will do that with abigail doolittle. abigail: we are seeing some brutal selling pressure here for stocks overall. s&p 500 down 1%. its worst day since february 13. not a huge difference. nasdaq 100 down 1.4%. is a broad-based selloff. chips down 2%. look at the small-cap index down 1.7%. there are not a lot of places to hide. this is as there are fears the fed will not be cutting as early as expected. we look at the two-year yield suggesting investors are waking up to this idea over the last stretch of time, up about 20 basis points but overall out of 470. not so far away from the psychologically important 5% mark. could we get data that would bring the yields higher yet to pressure stocks on liquidity not as abundant as folks would hope if the fed were to cut? as for stock.

look at tesla down 5.7% on the production and delivery miss. i believe it is the worst on record. double-digit from a percentage standpoint. humana down 14%, the worst day since january as medicaid plans will not be reimbursed to the greatest degree as expected in 2025. as some of the plant to submit utilized the plan more and they are getting hit more from both sides. pvh corp. down 23%, the worst day since 1987. they own calvin klein. gave a disappointing outlook for the year. weakness in europe. apple, which is meant in a correction for quite some time down about 710 to 1%. -- .7%. because apple is one of the biggest components, look at the technicals to see what could be the case. apple is hitting an important support. concerned about the fact the last peak is in december. if we put this in the context of

last year, this area of congestion or a range. if apple traded back into the range we don't know which way it will break. it is the battle between the sellers and the buyers. if the range does not hold it's a massive topping counter suggesting a very large drop for apple on top of its greater than 10% drop from the december peak. that might be a possibly bearish message for the s&p 500 and the nasdaq. one reason we are seeing the selling we are seeing now for those major indices. katie: we will keep a close eye on that range when it comes to apple. abigail doolittle, thank you so much. blackrock's tokenized fun has brought in over $240 million since its debut. we will look at its significance with carlos domingo, securitized ceo next. this is bloomberg. ♪

thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh 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. to me, harlem is home. but home is also your body. —last one everyone. i asked myself, why doesn't pilates exist in harlem? so i started my own studio. getting a brick—and—mortar in new york is not easy. chase ink has supported us from studio 1 to studio 3. when you start small you need some big help. and chase ink was that for me.

earn up to 5% cash back on business essentials with the chase ink business cash card. make more of what's yours. (upbeat music) there's more to business than the business you're in. if you use data, that's the privacy business. manufacturing on demand? you're talking cloud business. got a few million hyper-connected customers? digital experience business. that was fast. that's where deloitte comes in. with the right combination of talent and technology to help advance and connect

all that it takes to excel in business ... to the business i'm in. deloitte. ♪ ♪ relax into a caribbean state of mind. visit sandals.com or call 1-800 sandals. abigail: this is bloomberg markets. you were looking at a live shot

of the principal room. new york city comptroller brad lander joins us at 4:30 p.m. new york time. this is bloomberg. ♪ katie: time for the daily wall street week segment. we are taking a look at blackrock day being his first tokenized fund in partnership with securitize, the first transfer agent operating of the blockchain. we have carlos domingo, securitize cofounder and ceo. and we have david westin joining us now. tokenization. david: i have talked to larry fink and he thinks the entire financial world will be tokenized. the first down payment on that. carlos, let me start with the most basic question. for whom is this a better mousetrap? why do we need it?

carlos: if you think about how capital markets work you have a number of financial assets. stocks, bonds, funds. the basic functioning as you have to move them. they have to sell them, trade them, redeem them, etc. all those changes are recorded in a ledger. you have to move the security but you have to with the cash as well for settling the transaction. those are things that move in a separate ledger. blockchain is basically like a very good public trip to graphically secured ledger to represent securities alongside with cash in with them in a very efficient way. that unlocks a lot of utility for securities and possibility in settlement. that is what tokenization is essentially. katie: who do you see this as being for? you have raised $280 million since it debuted.

do you see it is more from the crypto audience people who are invested in crypto or more for traditional finance coming into crypto? carlos: this particular product is geared towards the crypto institutions that want to have a cash management product native on the chain tokenized for either treasury management or building deliberative products. it's for the crypto institutions to have better management of cash managed by the largest asset manager in the world and completely on chain. we have done projects with other firms. the goal is to try to democratize asked -- accessed by using tokenization as a mean of digitization to provide ownership and easier distribution, trading, etc. david: you get a token that is associated with some underlying assets, like an etf.

those assets will over time be gaining in value. when you make money off the underlying asset how do you redeem that addition? do you get cash or more tokens? how does it work? carlos: the tokenized fund is essentially a money market fund. it has short-term treasuries and. agreements. you get a token when you purchase the fund valued at one dollar. as you accrue interest we will send it to your wallet, your address on the blockchain that contains your assets. we will send you more tokens to increase the number of tokens you have there. eventually you can redeem them back into cash if you want to exit the fund and get cash. katie: i want to talk about the blockchain. this is on the ethereum blockchain. why that blockchain versus the bitcoin blockchain which is maybe more well-known?

carlos: the bitcoin blockchain is really not useful for the purpose of the products we do. one of the key functionalities of use is the fact you can issue new tokens and you something called a smart contract, a set of rules on the blockchain to control how things move around. that is not something we can develop in bitcoin. that was the main innovation the ethereal blockchain brought to the market -- theory him -- ethereum blockchain brought to the market. it is not a blockchain you can build products on top of it. katie: i appreciate that context. i want to zoom out on this conversation. this is a public blockchain we are talking about. jp morgan went around of a private blockchain. for example. what was the decision process in terms of picking public versus private? carlos: banks are subject to

different regulations than asset managers or a registered transfer agent. we are subject to sec regulations. currently in the u.s. the sec is recommending banks not to use public blockchains as an underlying financial infrastructure. we don't have these restrictions. public blockchain is where the innovation will happen because of the compatibility of doing things on top of it, etc. if you want to understand the differences, it is similar to when the internet started and you have american online and msn that were close. then you have the public internet and that is where the innovation happened. anybody could build things on top of what someone else's building. i think the public blockchain is where the future is an innovation will happen and banks have restrictions and they are trying to be like j.p. morgan

with onyx but they are subject to what regulators allow them to do. david: i'm curious how regulation will affect your new fund with blackrock. there are reports the sec is looking into that question of whether it might actually be a security. if the sec concluded it was a security there would be morr -- -- more restrictions. carlos: that is how the blockchain works. you have this token that was you to run transactions and that is what provides security for the blockchain. whether it is a security, that is for them to discuss. people will figure out legal ways of purchasing and selling it because in capital markets there are $43 trillion treated daily. katie: really appreciate your time this morning. that is carlos domingo,

securitize cofounder and ceo. who else is coming up on the show? david: in addition to ray dalio who we have on friday -- larry fink last week. we have larry summers. the jobs numbers are coming out on friday. he will talk about what's going on. we are watching the financial markets and we are seeing the yields go up. katie: we have some jolts data suggesting the labor market is still very strong. it will be a fascinating conversation to look forward to. this is bloomberg. ♪

katie: disney's showdown with activist investors set to conclude when they hold their shareholder meeting tomorrow.

investors had looked beyond the ongoing boardroom battle. shares have rallied over 30% this year alone. let's bring in keith, bloomberg intelligence meeting analysts. when it comes to what the heart of this dispute is, it's about succession but it's also about streaming. what is the big issue here? >> you are absolutely right. succession has been a constant point for disney and that is something brought up by the activist investors, especially nelson peltz. that is something they will have to resolve. bob iger's term expires at the end of 2026 and he's looking at a pool of internal candidates. they are looking at some external candidates as well. trion has a host of grievances against disney. streaming has been a big issue.

this is a business they have been losing money on but they will turn it around this year. i think it's going to be huge catalyst for them coming forward when it comes to earnings. the other thing that trion pointed out is on the studio side. disney has had a kind of string of some misfires on the studio side. trion might have a point but in disney's favor they are working to reinvigorate the most important content franchises. katie: to your point on streaming profitability, we have heard bob iger promising profit is coming in 2024. we will see how that unravels. when you look at voting right now, the wall street journal has reported that disney so far is in the lead. things could change. investors still voting and they can change their votes. what is your best guess as to what will happen tomorrow? geotha: you are right that disney has a slight edge. i think they will end up coming

out of this victorious. it looks like a closed battle and you have nelson peltz, blackwell. if you look at the disney investor base, they have 1.8 billion shares outstanding. 35% to 40% are actually mom-and-pop individual investors like you and me. the rest is owned by institutional investors. disney has really launched a very aggressive campaign and that will pay off.. this is supposed to be one of the costliest proxy battles in the history of corporate america. disney spent around $40 million in this whole campaign. i think it is going to work in their favor tomorrow. katie: great to check in with you. i'm sure we will speak very soon. our thanks. disney shares up over 30% this year. down more than 40% from their peak.

coming up, bloomberg technology is next with ed ludlow and caroline hyde. that does it for "bloomberg markets." i'm katie greifeld and this is bloomberg. ♪

announcer: this is "bloomberg technology" with caroline hyde and ed ludlow. ♪ caroline: time caroline hyde in new york. ed: i'm side-by-side this week. this is bloomberg technology. caroline: tesla drops after deliveries fell way short of expectations. rivian beat estimates. ed: plus, the outlook for technology