>> we are 30 minutes into the u.s. trading day on this monday, april 15. here are the top stories we are following. stocks rebounding after a bruising two-week selloff, but geopolitical tensions climb and jp morgan warns that the good news is already wasting when it comes to earnings. more on that ahead. rent the runway. shares continuing to skyrocket after blowing past expectations last week. jennifer joins to discuss the quarter and the path the positive free cash flow. and mapping the fallout of what a regional world would mean for global trade routes after iran attacks israel over the weekend. we will discuss with brandon

daniels in our wall street week daily segment. ♪ katie: welcome to bloomberg markets. take a look at markets on this monday morning and there is green on the screen behind me. the s&p 500 currently higher by about 8/10 of 1% after two straight weeks of losses. it is the same thing if you take a look at big tech, the nasdaq 100 also up about 8/10 of 1% even though you have tesla and apple on the back foot this morning. take a look at the bond market and that selloff is continuing to build momentum. 10 year yields almost 11 basis points. we are talking about a 4.6 to handle when it comes to that 10-year treasury yield and that is because of course we got more eco-data this morning and like we've seen, it was very hot. we are going to talk about that

a little bit later but let's talk about one stock we are watching this morning, goldman sachs. the bank reporting that revenue beats across the board, shares are flying right now. for more, we are joined by sonali basak. give us the rundown because the stock reaction is really telling. >> david solomon now addressing analyst on how sustainable those gains are in the trading, in investment banking. remember, we are just starting to see come back and let's call in durable david because durability is the word he is using to show that businesses that have typically been volatile over the last couple of decades or so can now be more sustained. what is interesting is seeing being asked by analysts on whether this was an average quarter or a peak order. how would you define it? he said it was strong but he has

seen goldman have bigger quarters. goldman really punching above its way, leaning in on those financing businesses to bring in more trading business and a very volatile market. when it comes to investment banking we are just in the early innings here of that 2024 rebound. still, advisory fees of more than $1 billion. all these fees have also led to more expenses. he is getting questions about those expenses. compensation expenses really rising at the second-highest pace year, just behind jp morgan. goldman executives now telling analysts they are very focused on efficiency. of course we do know their efficiency ratio in particular did beat wall street estimates. so even with that jump in expenses and goldman executives talking through those inflationary forces, you are still seeing them in those regards. jonathan: shares currently at about 4.6%, that so far is the best day since last december that holds. goldman really getting across the board. how does that set us up for the

thanks that still have yet to report the likes of bank of america and morgan stanley tomorrow? sonali: bank of america, member those big, commercial banks to face a big downturn in friday's trade because you saw worries about that future of net interest income. her bank of america the trajectory will matter a lot and for morgan stanley, something interesting is that you saw goldman bring in the equities trading revenue above jp morgan. remember, historically morgan stanley has been the leader of that path but in recent quarters, you seem goldman jump above. it sets the bar really high and for morgan stanley we are going to want some updates on what is going on in the asset and wealth manager. that wealth manager reportedly facing some pressure, under investigations from u.s. regulators. so update on that will be critical watching tomorrow. katie: i'm sure we are going to be speaking to you in just about 24 hours. i thanks of course to sonali basak. let's take a deeper dive into these assets.

you're going to do that with ryan dietrich. he joins me now on set. great to see you. ryan: thank you for having some good weather in your city. katie: it took a while to get here. ryan: my son's name is gus, so there you go. katie: it is a great name. maybe the last fund department, let's talk about earnings. it is the very start a earnings season, it seems to be going ok if your name is goldman, but how are you expecting the rest of the s&p 500 and the stock market a large to fare? ryan: to follow the recent trend, coming in in the better-than-expected. up about 3.5% on the s&p. we wouldn't be surprised at all if it came in at five, maybe more. 85% of companies are beaten. all in all, you look at this retail sales number, consumer still strong. are we over eating, are we not? we don't think there's any reason to think this earnings season will not feel surprising

to the upside once again. katie: it's interesting, for weeks i've been asking to the fundamentals justify what we are seeing when it comes to the price action, when it comes to the broader index. people have told me yes, and then you have jp morgan out with a note this morning saying that a lot of good news when it comes to the upcoming's earnings season, it has already been priced in. if there is cap disappointing here just because again, good news is already in the stock market? ryan: there's always a risk when you are five months in a row. friday there have actually been a lot of companies that had some negative news ahead of time. they've got guidance out negative ahead of time. need that bar is lowered but one interesting thing to us, the first half of april historically isn't that great. april 15, this is the low and that you rally into the end of may. that is just seasonality, you don't blindly invest in that. but of course we got the terrible news of the weekend, maybe late april rally fueled by

earnings makes a lot of sense. katie: seasonality's, if this actually holds, we had a terrible first two weeks to april and now of course we are up 8/10 of 1%, so we will see again if it actually plays out. to focus a little more on earnings, when it comes to the broader price action, we have seen this rally broadening out. we do expect earnings to broaden out in a similar way, or is this really big tech power in america? ryan: we are hearing it is all the tech. but you look going out, it is going to start broadening out. the financials, industrials, there are some areas. i know small caps have struggled but you look at small-cap revenue and earnings, that is where a lot of the growth is going to come from. one more point on the breath of this market, two weeks ago we had 89% of the companies of the s&p 500 above the 200 day moving average. that is a lot of for the patient. to us, there is a lot of participation which is a healthy sign for a bull market.

katie: we are definitely going to get into small caps. if you weeks ago you made a bold prediction which we will get into but i do want to talk about geopolitics first. the news over the weekend, iran attacking israel and honestly coming into the futures open last night in the open this morning, i wasn't sure what to expect. you take a look at the stock market right now, it seems to be really shaking off that risk of a broader conflict. how do you think about pricing in geopolitical risk into the u.s. stock market? ryan: it's very hard. we took a look going back to world war ii and found 39 major instances. jfk murdered, 9/11, the big ones. the s&p was higher three-month later on average. so we are not minimizing what is happening but the bottom line is if you are in a recession, if it even causes a recession, right now i think this looks a lot like january 2020. the u.s. to the drone strike on the iranian general. a couple days later, iran struck back in iraq and hit some

bunkers were u.s. troops were supposed to be, but they went there. it seems a little bit like that, and hopefully calmer heads come in. katie: that is a good point, this is a quickly moving situations of definite something to monitor. when it comes to praising geopolitical risk, we are talking about the stock market here and it seems to sort of the tenuous when it comes to pricing that in. what about other markets? if you are looking for a haven, does it make sense to think about those worries as it relates to maybe other asset classes? ryan: it does. we had a slight overweight to commodities for well over a year now. we've got a little bit of gold actually in some of our tactical models. we are bullish, we don't see a recession but there are some reasons to think a well-diversified portfolio makes sense. i'm calling this the rocky balboa market. when you have a big down day,

0.75%, that is not a lot. we've seen historic jumps that next day this year. like the most ever. rocky, you knock them down, he always gets up. with all the news, did you really think it would bounce back today? we are seeing rocky once again with the stock market. katie: someone made a michael keaton reference to me last week and i had no idea what they are talking about, but i do get rocky references. stay with us, with quickly take a look at was moving underneath these markets right now. let's start with tesla. katie: tesla, one of the worst performers of the magnificent seven announcing a 10% headcount cut globally in line with a number of executives leaving the company. ari ludlow has been all over this, a brutal two day stretch, a brutal year today. underwhelming sales as well as consumers pushing back on wanting to buy ev's or pay up to

buy them as well as the fact that elon musk has to wear a number of hats overseeing companies like x, spacex and others that are really kind of detracting away from the upside. in that news of the headcount, normally you see shares riffing off of that. it does seem like the underlying concerns are continuing to bubble for tesla. katie: shares down almost 4%. the fact that you have seen this rally broadening out, maybe that is not as painful to the s&p 500 as it would have been about a year ago at this time. but apple, when it comes to apple, china has been the bear case for a while. >> and we are seeing the worst shipment numbers for the iphone since the pandemic. this along with tesla, two of the maybe not so magnificent seven companies, underwhelming so far year today. another negative headline we have, seeing a number of updates related to the barricades, related to competition in china and maybe consumers pulling back.

maybe this really does hinge on that market over in china and the ability for iphone and apple to kind of combat some of these rivals. we are seeing their data jumping . what is going on? >> is down about 15%. this is not anything really new. this is totally normal. this basically is step one of two for insider shares to at least potentially be able to be traded. they headline risk, people panic, that is ashley not the case with this update. now the sec will be able to go through this, send back any notes, talk to trump media about what is next. when they deem that effective, some of the dilution from the moran's are treated could come

into play in the board can expect the process, but all things considered, this is actually something that is quite normal, though we do typically see some pretty sharp declines, so people maybe not continuing to understand some of the minute details. katie: all in all, not a great day for donald trump, also arriving in court in manhattan today for the start of his first criminal trial. more on that later, but bailey lipschultz, thank you so much. coming up, the u.s. consumer keeps on spending. retail sales below forecast. we will break it all down, next. this is "bloomberg."

♪ katie: u.s. retail sales feeding

march forecasts as consumers keep feeling a surprisingly strong economy. during us with more is mike mckee. i feel like surprising is the right word to describe what we've seen over the past really over the past few months. what did we learn today when it comes to this economy through the lens of retail sales? >> basically that you did a good job propping up the economy. americans just don't seem to want to quit and it seems to be a combination of rising incomes and supply-side benefits. as prices level out, people are able to get merchandise that they want. we'd seen goods prices sort of level out and that is what we've got today in the retail sales report. a much stronger than expected number of seven tens of one for the headline. for the control, 1.1%. but even more important than that, big revisions to the prior two months.

february was revised up to 9/10 on the headline. the control number revised up to a 3/10 gain from flat. at this point, what it looks like is that we are seeing essentially the same amount of spending we saw in that big fourth quarter. just a second ago you had up the chart showing the changes in the individual sectors for retail, and what it basically shows us is that yes, gasoline is a big tribute gas prices were up, but as you can see, the numbers on the far right, the percentage change for the various parts of the retail sales report, they are spread out among a lot of different categories. there are fewer categories as the rig in january that were below zero. so it looks like a fairly strong spreadout report, and it looks like good news for the economy overall. katie: i did actually buy two pairs of pants yesterday so i am sure we will see that reflected in the april figures.

you had a conversation with the new york fred -- fed president john williams earlier this morning and he is still expecting rate cuts plural this year. quickly tell us what you guys talked about. >> we talked about whether or not they need to cut rates. the economy is strong, unemployment is low and inflation is still falling. and he said yes because real rates are high enough that they could start to slow the economy and the lagged effects of rates would impact the economy down the road. so his base case is still that we get some rate cuts, but as he pointed out, they don't need to do it right away. they can wait for more evidence going forward. katie: really appreciate the breakdown. of course we're seeing a lot of this reaction come through the bond market with yields of sharply. let's keep the conversation going now with ryan dietrich, chief market strategist. with actually talk about the fed a little bit.

it has been shocking to see us go from six rate cuts priced into the conversation, does the fed really need to cut at all? >> about 6, 7 weeks ago we heard 6, 7 cuts. we thought the economy would be a little bit stronger. we're still -- i'm not sure optimistic at the right word, but still expecting to see two or three cuts this year. i get it, the cpi was a little hot, but i big theme has been productivity. when you have higher productivity, that allows for higher wages and it put to cap on inflation so you don't get this spiral of inflation. we are optimistic that we stick with the cut were two, but why are we having less cuts. we still think it is more of a dovish that then we had obviously the past couple years and they cut or two down the road still makes sense. katie: so you take a look at the

10-year treasury yield right now, camped out around or .65%. quite a move. when you think about some of the areas of the market that you're are feeling good about, small caps for instance, how much do these smaller companies, these midsized companies really need rates to come down? >> we've liked small and mid-cap since late last year. mid-caps have done better. it is an important factor but we would say look at the valuations. i've done this for almost 25 years. sometimes people say they are cheap for a reason. if the economy comes back, look at the ism manufacturing that we just saw. when you start as see jobs in manufacturing, two or three quarters later, small to mid-caps historically lead because it means the economy is getting better. small to mid, the market is pricing in certain areas. those are the chief areas. we still think that is an opportunity for people. we are not wildly making this huge bet, we just think that is

a place people can find some alpha. we think small is going to play a pretty good catch up before it is all said and done. katie: is that a broad brush strokes opportunity, small and mid-cap that large? >> i would say more of a broad look but small-cap industrials, small-cap technology has done well. there are some of those more aggressive areas. we have been under weighing utilities and staples for a really long time. small-cap is not all that different. >> let's talk a little bit about volatility. it really hasn't moved in a long time, that feels like it is starting to change. we got above 17 last week, just below 17 at this moment. how do you think about volatility in this market because it has been dormant for a while. >> we haven't had a 2% daily loss three historically very

long time. there's lots of ways we can talk about it, but the peak to trough correction so far has been only 2.5%. that would tie the police volatility ever. the honest to say we are probably going to have more volatility before the year is done is very high. we wouldn't be surprised at all if we had a 5%-a percent correction sometime before the election. last year, 10.2% correction into the end of october, still over 20% for the s&p. i'm not saying rough times would be perfectly normal after 30% rally in 12 months, but to have a well-deserved scary pullback, don't forget, election years, you tend to get a pretty strong summer. it is right before the election when you get those jitters that we had. katie: it is a good reminder, this is an election year. taking a look at trump and manhattan correlated today the

quickly while i still have you, we are talking about equity, market volatility has kind of been left for dead. bond market volatility has definitely been seen why the updraft. diva expect that translate into the equity market? >> bonds and commodities, you could argue. but the bottom line is yes. it a lot of volatility in some of the other markets can kind of knock into some of the other areas and caused some volatility. but the bottom line, this is a bullish trend and a bull market. we are going to have more volatile moves as we start to move into the second half of this year. we still think this is a full. katie: great conversation as always, the appreciate your time, hope to see you soon. ryan dietrich, carson group chief market strategist. the social climber segment is up next. this is bloomberg. to me, harlem is home.

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♪ katie: it's time now for social climbers. a look at the stocks making waves in social media. first up, adidas getting a step ahead with a double upgrade over morgan stanley. the german shoe diet was raised two notches from overweight to underweight, seeing a lot of topline momentum thanks to its lifestyle shoes and its signature basketball sneaker from nba player anthony edwards roku says that five and 76,000 accounts compromised in the cyberattack. it is the second security breach for the streaming service this year. the company said the actress did not gain access to any sensitive information like full credit card payments or other details. finally, alcoa making the rounds after the u.s. and u.k. impose new restrictions on pretty russian aluminum, copper and nickel. coming up, rent the runway after

a stellar fourth quarter. jennifer hyman joins us next. this is bloomberg. ♪ ♪♪ the road to opportunity. is often the road overlooked. at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward the further we all go. should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chase app. when you've got a decision to make... the answer is j.p. morgan wealth management. her uncle's unhappy.

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♪ katie: we are about an hour into the u.s. trading day salutes get a check of these markets with abigail doolittle. abigail: we do have an update but we are well off the highs, the s&p 500 futures, you can see overnight up slightly, about 3/10 of 1% or about the same amount as now. closer to a tense of 1%, the best day in more than a week, but now down, cooler heads prevailing. much of this could have to do with those warmer than expected number is that while they signal strength in the economy, they may signal that the fed is going to be less likely to cut rates

this year or two cut as many times as possible. let's take a look at yields because it seems that these rising yields, that two-year yields so close to 5% up about eight basis points, the 10 year yield of 13 basis points, not so far behind the two year yield at this point. as yields rise, a consent stocks lower. we don't have that yet but it does seem as though this is featuring into the calculus of investors, and it certainly has been over the last couple weeks, yields have just back of amended that to year yield of almost 1% this year. this is a chart that we've been checking for a while but it is an important charger take a look at. the s&p 500 rising out of the lows last year in december. those with the record highs that everybody was talking about. the momentum continues to go down, so we have this move higher on less bullish investors, and now we have this uptrend, barely clearly snapping, suggesting that we could see more weakness ahead especially if this momentum goes

down. it seems as yields rise, certainly a piece of that dynamic. as for what is happening beneath the surface, tesla and apple, big tech taking a bit of a dive down on the morning. tesla in particular down 2.9%. all sorts of staff changes happening including a 10% cut to the global workforce. it difficult decision for elon musk but also one having to do with the fact that they need to turn things around and apparently some roles are duplicate will, i don't even know if that is a word, but duplicated. apple down 1%, apple shipments in the first quarter down 10% on a year-over-year basis but we do have nvidia up higher, close to being the second number, we almost have in the s&p 500 apple and nvidia switching places for number two and three. goldman, a real star of 4% on that strong trading performance in the first quarter helping out profits. katie: thank you so much, and

let's keep the good news going into talk about rent the runway. trying to leave elegance with intelligent and investors are really liking the results. the clothing rental company reporting better-than-expected quarter earnings and a big fat on ai tools to fuel growth. jennifer hyman is the ceo and cofounder. he joins us now. wall street clearly shocked by this result, i think that is fair to say. let's talk about what went right. what was the biggest change between this report in your previous quarter report? >> i think that we were able to provide guidance for 2024 that showed that we would break even or show that we were a business that was growing. so i think that there has been some skepticism of the overall retail or fashion market. and a lot of other companies have talked about a weakening macro. for us, we actually have seen

really nice growth indicators coming into the year, our net promoter score is up 20 points, loyalty rate is up. we feel confident about our growth this year. we seem that our resale business which is strategic for us was of 35% year-over-year in 2023 and that continues to be a nice letter. i think the combination as well as growing in this market was something that investors were skeptical before. >> that definitely caught attention. when you think about a surprise and what we are seeing in the shares, how much of what you are seeing is a change in terms of rent the runway's personal decision-makings bearing fruit vs people return to the office

and needing nice clothes again. >> i hope it is a combination of both because we certainly benefit from women who utilize us for work, for travel, for special events. so women going back to the office is a fantastic boon to our business, but we made some dramatic changes in our business last year. we focus for the entire year on customer experience. we made our customer experience way more premium, as evidenced by the 20 points increase in net promoter score which is really fantastic. we also made some significant changes in our inventory and really focused on inventory -- so that more customers got the inventory that they fell in love with on the site, we had more inventory availability, and we saw that rates went down significantly as a result of our focus on inventory depth and kind of continuing to upgrade our selection.

so we think it is a combination of the things that we have been doing and focused on as well as a general market where people are back to life. katie: when it comes to that, you had a 35% decrease from those users who were primarily setting inventory is a reason for not returning. when it comes to your inventory depth, as you continue to hopefully grow subscribers, how confident are you that the inventory levels will be aligned to actually meet that demand? >> we feel very confident in that. we enter this year knowing that first and foremost, our business is about getting people to fashion that they love, so that is kind of the foundation of all of our plans. we feel great about the depth this year and in fact, because we actually monetize inventory on a platform for multiple years, we are going into a year were we had very high depths in the inventory last fall, so couple that with more deaths this fall, -- depths this fall, i think the impact is going to

be even greater as a result because more of the units on our site now kind of suit arrived to this high depth strategy. katie: inventory is a tricky conversation for a lot of retailers, because a lot of them ended up with a glut of inventory. when you think about the broader retail industry, but when you think about your own business, would you rather have too much inventory at this point? >> i would rather have too much inventory. actually, inventory is the competitive advantage of our business. so think about a traditional retailer. there inventory cost is around 45%-50% of their revenue. ours is approximately 30% of our revenue. that is because we monetize inventory over many seasons, and we have proven that what our customer cares about is wearing something that is new to her as opposed to something that is necessarily new in season. one of the other major thing that i think the stock is responding to is the fact that

this is now a capital light model. over 50% of our inventory in 2020 four is expected to come in on revenue share, meaning that we do not pay for it upfront, or we pay very little without designer partners and then the revenue share based on the tory. this is -- inventory. this is an extremely unique model that only rent the runway has. don't know any other retailer around the world that works with hundreds of rents, and that is because brands are increasingly dependent on rent the runway as one of their primary sources of customer acquisition. we are introducing new customers to brands, we are giving them this amazing experience, falling in love with and wearing the product, so think about us as a retail store, but we brought the retail store into your home, into your workplace, and you are falling in love with these new brands. katie: it makes a lot of sense that it would be kind of a gateway to exposure to brands

that maybe you otherwise wouldn't shout for. i do want to talk about the economic environment that you are operating in. higher for longer interest rates, the fed funding breaks healthily above 5% right now. talk to me about the health of your balance sheet. i understand you have debt coming due in the next three years or so. >> so we did a restructuring of our debt in december of 2023 that eliminated both our cash and our picket interest for six quarters. we have a healthy relationship with our lender, it is one singular lender, and we are focused on driving as much free cash flow as we can as quickly as possible because that's the way to create a sustainable business. that alongside growth. so this is not just focused on profitability for profitability's sake, but we believe we are in an industry that is only growing, that will grow for many decades to come and we want to prove that

fashion subscription and fashion rental is here to stay. and the way to do that is to grow. katie: do keep in touch on that journey, especially on that path to positive free cash flow. really enjoyed this conversation. our thanks to jennifer hyman, rent the runway ceo. coming up, how the iranian tax over the weekend could hit supply chains. we will be joined by brandon daniels next. daniels next. how am i going to find a doctor when i'm hallucinating?

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abigail: this is bloomberg markets, you are looking at a live shot of the principal room. coming up, greg hewitt joins today. this is bloomberg. katie: time now for our daily wall street week conversation.

we are focusing on the terminal in the middle east. on saturday, iran ceased a container ship, the latest in a series of attacks between the two countries, and here with more insight into how this impacts global supply chains is brandon daniels along with wall street weeks david westin. david, an important position after what we saw this week. dated: a lot of drama. what did you see, what is the reaction so far in the market what we saw over the weekend? >> so there are two things. the first thing is that the market is responding to the bearish oil expectations, so there has been a sentiment that there is going to be a depression in oil demand this year. and so that has eased supply shock that was anticipated, and

that has also eased the sort of geopolitical tension impact. so that is one of the major market impacts. but this also is going to start to impact the markets in multiple jurisdictions and in multiple industries. you still have major segments of the market that are shipping through the suez canal and through areas in that sort of middle east region. you have jetta and a lot of major ports in that region, and the major countries that they are still shipping through are in asia, and in particular, india. so you are going to see shipping impacts and costs and inflation impacts on many of the goods that are shipping through india, in particular rare earth materials, critical minerals that are used in global technology products, and then

you are also going to see actually a supply chain impact on oil and gas industries because a lot of methanol actually shipped through those ports. you're going to see a global impact but it is going to be really felt in asia right now because those are the places that are still dependent on this major thoroughfare, this major shipping route. katie: you touched on what i've been wondering about which is where we should be looking for the ripple effects, what industries we should be keeping an eye on. it sounds like oil, definitely but also rare minerals and things along those lines. >> absolutely. oil and gas during any middle east conflict obviously sees the oil price spike. so depending on the israeli response and depending on the extent of this conflict, which a lot of our customers that are in the federal government are saying that they are anticipating maybe targeted strikes, maybe something

measured just depending on the diplomatic negotiations over the next 48 hours, but a gulf war- like engagement here, kinetic warfare. it could lead to oil prices doubling and considering that we are sort of moving toward $100 per barrel right now, that could impact our global inflation rates significantly, which leads the fed into a very difficult position in terms of rate cuts. we might actually not see rate cuts for months and months and months if this conflict starts to escalate and maybe not all in 2024 if this escalates significantly. but you are also going to see some of the technology and electronics areas start to get impacted. even some of the areas like semiconductors which isn't an area of high demand right now

because of the boom in ai. and usually any situation like this where you have a major porch at down, you see anywhere between 5-10% reduction in output of raw materials because this is a major shipping lane between asia and the united states were asia and europe, where a lot of the semiconductor manufacturing or finishing of those goods occurs. the other area that you are going to see another impact is the same area that we saw when the rebels were attacking ships if the automotive space, especially in europe and especially ev's. you are going to see potentially one or two month delays as people continue to route around this major canal, like the suez canal or around these major ports. so those are going to have downstream impacts. one of the interesting areas where i think we will also see

an impact, if there is kinetic or continued -- for continued kinetic warfare between these two countries in the middle east generally is in cybersecurity. israel's cyber industry, israel's technology industry is one of the most robust in the world, and if everyone so focused on the conflict and managing cyber infrastructure, you actually might see an impact in the global cyber industry growth. >> briefly here, that israeli-link ship that was seized, as that have a specific effect, for example i think about insurance rates. >> yeah, there is a lot of infrastructure that has already moved to rallying around that specific region. and what they were doing has already been priced into insurance.

but if there is a larger scale conflict, i think insurance rates, insurance premiums, and even the idea of supply chain risk underwriting starts to get a big boost. it starts to become a focus, just like he saw cyber insurance start despite over the last five years. i know for us, our cyber insurance has increased and most fortune 500 companies, their cyber insurance has increased significantly. i think what has happened in baltimore, what has happened in panama, what has happened in the houthi situation and now what is happening in this geopolitical tension, i think insurance providers are starting to wake up, boards are starting to wake up and supply chain management becomes the frontier for risk management globally. katie: this geopolitical tensions, maybe they are

permanent risk factors and forward. brandon, really appreciate your time. david, who else we have coming up this week? >> tomorrow we are going to shift gears. jonathan klein who used to run cnn, now runs hang media. and then on friday we are going to be joined by steve ratner to talk about electric vehicles which are very much in the news, particularly today given what is going on with tesla. >> tesla not having a great day. a lot to look forward to. this is bloomberg. this is bloomberg. o coming in.. big orders!s

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with the chase ink business unlimited card from chase for business. make more of what's yours. ♪ katie: donald today becomes the first former u.s. president to face a criminal charge. the republican presidential hopeful is accused of falsifying business documents to cover up hush-money payments to adult film star stormy daniels.

kailey leinz is outside the manhattan criminal court for us. it's not necessarily the hush money, it is the covering up that is the problem here. >> that's what these allegations are. essentially they misclassified payments, reimbursement payments to his former attorney and ask her who made the payments to stormy daniels and that that was a campaign finance violation which is what raises these charges to a class family. eusually falsifying documents is a misdemeanor. he of course denies all discharges and has pleaded but he is right now in the courtroom on the 15th floor behind me at this trial proceeding gets underway. they dealt with a series of motions including the motion for recusal which the judge denied. questions about what evidence could work at not be blocked related to his alleged affairs and then moving over, a process of jury selection as they try to pick 12 jurors and six alternates who can be unbiased and fair in assessing this case and former president donald

trump who of course is the perceptive republican presidential nominee, which just speaks to the idea that not only is he facing potential prison time, but also potential consequence for how delectable he will be in november. there have been polson space state in which more than half of voters say if trump were to be convicted of a crime, they would not vote for him. katie: a few points. first of all, good luck picking injury. everyone in manhattan has heard of donald trump, but the last point that you made, we are also talking about donald trump for candidate. what could this mean for him in a bit more detail? >> not only could it mean that some voters would decide not to actually choose them on the ballot, but this has consequence in terms of the actual campaign financing in italy for him to contain himself. he is legally required to be in the courtroom for everyday of this trial which takes place every week day except wednesdays. that would keep them off the campaign trail from doing things he could be doing in terms of tickle campaign events.

that said, he does have a history of using court appearances as the factor campaign stops, speaking to the present pleading his case not just to journalists, but to american voters overall. and he did some walking into the courtroom today talking about how he views this case as political persecution and thinks that this is kind of a weaponization of the justice system against him. ultimately it is going to be about six to eight weeks before we understand whether or not this is just an indictment, whether that will not result in a conviction or whether he could potentially be a convicted felon before the republican convention in july. katie: appreciate your reporting as always. of course she will be covering the trial all day for bloomberg news. but before we go, let's take a quick look at goldman sachs to get the bank stock is up over 14%. actually, 3% right now. that is after a surprise first quarter across the board and that is really muscling the entire sector higher right now. you also have schwab shares up to the tune of about 2.5%, 3%

right now. sector overall currently up about half of 1%. you second-best performing sector on the day. coming up, bloomberg technology. that does it for bloomberg markets. this is bloomberg. ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall.

>> from the heart of where innovation, money, and power collide, from silicon valley to beyond, this is "bloomberg technology," with caroline hyde and ed ludlow. caroline: i'm caroline hyde in new york. ed: and i'm ed ludlow in san francisco. caroline: coming up, iran launched missiles and drones into israel over the weekend and the u.s. and europe