Here. S p 500 just flipping into the green. Really trying to shake off that third day of declines today. The nasdaq 100 still down more than. 1. You have the twoyear yields up about one basis points now, just under 470, very volatile. And then you also have crude oil still above 85 here, still up. 8 at the highest level since october. And we have some breaking data and Michael Mckee has the details. Life would be a lot easier if we didnt have contradictory situation coming in. So not as big of move down in prices paid for services as we saw a move up in the prices paid for manufacturing. The only people that cared about is im employment in the service ism employment. We are seeing some contraction in employment in the services of business. All in all, this is a good report but slightly weaker than it has been and that sort of breaks this chain of strong reports that we have seen all week. Sonali just as i was on the board there, you had twoyear yields above 73 for a moment there, getting back below 70s. How do you think about whats ahead . I suspect everybody is going to be focused on j. Powell this afternoon. Theres not enough data that would cause him to change his view. Maybe people are looking for more guidance on what theyll be looking at or how he describes the economy since the numbers that we have had have come in for the most part, strong or stronger than expected. Sonali yields now at 469, hanging that to a 470 level. A lot of fed speak ahead. Lets dive into those markets now. Because we are joined by chief market strategist. You look at this conflicting data and it is really throwing a wrench in a lot of the expectations that were seeing for rate cuts. But how do you read into the volatility for new money to put to work . The risks are underpriced as pertains to the uncertainties in this market. We could see a rising risk of a fed induced recession with too high nominal rates meaning that real rates really start to bite the u. S. Consumers. So those two fat tail risks are underpriced in the market. Sonali where do you think theyre most underpriced right now . The front end of the u. S. Treasury curve and if im right and the fed does cut this year two times, then were going to see that big swath of cash thats sitting in in money markets thats returning 5. 3 . Its maintaining some exposure to the equity markets which you can protect yourself with at the money for 12 months out. Sonali how do you think about the mag 7 where it stands today and frankly, even some of the a. I. Stocks . Kathryn i was looking at the numbers with our team and after the major breakout weve seen january 10 which is the highest the market top in the past two years for the first time in a year, historically, that implies around a 15 return for the next 12 months. And when you look at the breadth, 86 of the s p 500 companies are above their 200 day moving average. So thats a good sign. That shows that the breadth is widening. You hope you dont need it but when you have it, youre very happy that you do. And you can buy the protection pretty cheaply, around 4. 5 on the s p 500 for 12 months out at the money and you can protect those triple qs. The Technology Sector as well. So you maintain your exposure to this ongoing rally which is likely to continue without some flop in unemployment and consumer but youre protected. Sonali basically youre saying keep buying but hedge . Kathryn yeah. Complacency is pretty high. Everyones discounting this perfect landing underpriced risks. Sonali would you take profits further given that the breadth is expanding . Kathryn i think it makes sense to rotate out of the high flyers. And thats why i like the barbell approach. Maintaining exposure to the cyclicals but then buying those underloved sectors such as utilities and staples that have underperformed in the past year but in the event of some we were talking about oil prices potentially surging. Oil could jump 40. That would incite inflation. So it does make sense. Sonali with so many people concerned about that acceleration of inflation, do you start to almost bet on it at this point . How do you think about what role inflation plays in the market today . Kathryn 1. 8 of that last number of. 8 comes from housing. If we do see housing drop in terms of prices, which new tenant rents is indicating will happen with a fourmonth lag because new tenant rents have been dropping, that could take some of the pressure off of inflation. I do have a 2. 6 in core p. C. By the end of this year but thats going to be hard to get to that 2 trend. So the feds going to have to make some tough choices, higher target or break something to get to that 2 target. Sonali when you think about what could get hurt under higher inflation environment, where do you start to worry . Kathryn the Interest Rate sensitive sectors i think weve run the risk of recession. So then you see leverage loans for example, which have outperformed massively in the fixed income space get hit. High yields get hit. You see the bringing forward of the credit cycle which we have not seen play out as yet that one would expect after 525 basis pointses of rate hikes. Thats where we will see vulnerability where the fed would have to maintain nominal rates. Sonali jess, were seeing a pretty significant move. The lowest since november. Thats right. And its seeing its biggest percentage drop since late january. So when you are looking at intel, one of the biggest s p 500 and the biggest decliner, so this does come after it did disclose operating losses in its semiconductor business. And this is something that theyre having to push off those expectations. The stocks down 18 yeartodate which obviously underperforming the broader s p 500 and also if you look at intel and stock have been around 90 . Pulling back but in other corners, have to bring up tsmc. So if you look at the u. S. Listed shares for this dipping, pairing back from some of its earlier declines, given the earthquake in taiwan, even Bloomberg Intelligence or jefferies, theyre pushing back on how much concern because you do have more factories opening up. Sonali how is this impacting other players . Apple is shaking off some of the bad feelings that investors have in the market for that stock. Just the massive buybacks that apple tends to have. Also just the dividends and then also when it comes to tax laws harvesting and given the stock was up closer to 50 last year. Looking at those key thresholds, it might be getting close to a support level. Cal me foods. Calmaine foods. The biggest supplier of eggs in the United States. So looking at this stock and its gains today. Up close to 7 . This would be its best percentage gain of this year but this is al coming back of a steep decline. That was at that time, the biggest decline. Youre looking at whats happening temporarily after chickens at its texas point did test positive for that highly contentious and contagious bird flu there. But when it comes to an earnings perspective, so you are seeing that stock more supportive. This is something that wouldnt be an issue for this company. Sonali we thank you so much for keying an eye on all thats moving. Next, that boardroom battle at disney coming to a close. Vanguard coming in hot. Well bring you the latest next. This is bloomberg. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. 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Vanguard and blackrock, disneys largest investors are siding with the board. And while the battle might be nearing to a close, this could have a major impact of markets. A proxy battle in the Magic Kingdom does not go unnoticed. Disneys weight is over 2 . And nelsons proxy stock could move the dough. And joining us with the fallout is bloombergs ed ludlow. Is it in the bag right now for disney and what comes next . Its hard to say its in the bag. Good morning. Wow, thats a new one. Vanguard and blockbuster are in the bag. The institutionals has sided with bob iger but there is an unknown, a wild card which is the largest body or single entity is a group of frankly Retail Investors that make up 30 of the Shareholder Base and Retail Investors historically side with the activists thats bringing the proxy battle. At least 60 of the vote was counted and you factor in as well, the shareholder can change their vote at any time. As reported with george lucas backing iger, the force is strong with him right now. Sonali ha, ha. Coming back at me with a george lucas joke. How do you think about the challenge forward for bob iger even after this battle . The nelson peltz wants a Succession Plan and hes upset about the streaming business performance, which continues to lose money but bob iger promise left hand deliver a profit in 2024. Whats harder to tell is that in the 133page manifesto that nelson put forward what is fixes any different from what bob iger is going to do whether or not peltz is on the board. That is the question. The strategy from disney has been to raise prices for consumers on streaming while cutting the budget on comment spend. And peltz takes issues with dids issue with the linear tv business and the issue with fox buying to achieve scale. So, bob iger might not necessarily do anything differently and as you pointed out at the beginning, investors do pay attention. Succession probably being the biggest question that lingers if iger manages to ward off the activist threat. Sonali ed ludlow of bloomberg television, thank you for keeping an eye on the story. Were back with Kathryn Rooney vera. I love using disney to talk about the Dow Jones Industrial average. Were talking about breadth in the market here. How do you think about the indices . Kathryn the estimated Earnings Growth is 1. 3 . If it turns out to be the case would be the third consecutive quarter of Earnings Growth which is setting us off for a positive year this year. Historically outside of recession, sonali, who consecutive growth is rare. And i suspect that even if the fed isnt able to cut Economic Growth, the combination of Economic Growth and disinflation if 2024 is a repeat of 2023 means the s p could move higher. But this is a market that is so built on this fundamental concept of soft landing that were it not to occur the repercussions would be dramatic. Sonali lets talk about anything outside of the s p as well. Theres been that russell 2000 raid that has been brewing under the surface. That has constantly gotten beaten down at any sign of inflation. Kathryn yes. Sonali how do you think about how vulnerable those small and mid cap stocks are right now . Kathryn the truth is is that under the expectation of dramatic rate cuts, small caps would do remarkably well. And i had to steepen our calls. But those two calls do well with the fed that cuts rates. Were it not to, the growth is above potential and that is reinflationary then they dont do so well. Where inflation remains sticky, small caps underperform and we get an important retracement in duration as well. Sonali youre not the only one closing out trades out there. When you think about what were facing a week from now, what are the big earnings upsets or surprises that you might expect . Kathryn i think that if we get some surprising economic data, weve seen very mixed data as you pointed out earlier this morning. If we get some surprising data on the labor front, then i think the cyclicals could be hard hit, especially the high flyers. So we get nonfarm this friday. Its going to be a good number. But the labor market is what the fed is focused on. A billing upside or a dramatic downsize. That will bring a market. Sonali we say volatility but how much and to which markets . Kathryn yeah, i think tech, which is the leader would face the most downside under an environment where the fed cannot cut. And we interest a potentially stagflationary scenario which is the biggest risk. So i would say the equity markets, theyre almost breaking three deviations from the mean and in terms of their overvalued nature would be the hardest hit. Gold is doing very, very well. Thats one of my top picks as well as cash instruments. Sonali now its interesting when we talk about tech, is tech a monolith . Do you think there are some parts of tech that would be insulated . Weve seen prior parts of the cycle where almost some of those big tech names have been like a shield . Kathryn thats right. Thats a very good point. Where can we find the tech trade that hasnt already been priced in . And there are opportunities within financials, within health care, sub sectors of these areas which have companies where you can stock pick and go in and say these guys from actually deploying a. I. Because at the end of the day, what were seeing is corporations like to talk big game but they havent executed technology or a. I. So i think a. I. Has to deliver to maintain the maintain Earnings Growth and validate that multiple expansion, which drove the market last year. Sonali when were talking about tech spending, when youre an infer and youre looking at these companies, what do you prefer at this point . Do you want them to be spending their cash on dividends . Do you want them to be buying other companies, going out there and acquiring as m a markets come back . Kathryn theres a lot of profitless tech companies. I think that this is a different market. I dont consider at it bubble similar the tech rupture in 1999 principally because a lot of these companies are profitable. And i think there are legs to this rally. So i think the trick is to find those as you mentioned, i think you alluded to this, find those sub segments that have not yet priced in this improvement in productivity that i still think is in the offing from the actual deployment of artificial intelligence. Sonali the nasdaq 100 flee into green teraon the day territory on today. What is that interest level that will not impact the exuberance were seeing in the market even if you expect less rate cuts . Kathryn if we get 5075 basis points, thats going to be what the market is expecting. If we get zero, if Economic Growth does post 2 , and we get zero cuts, i think the s p can be up another 15 according to that major breakout theory. But then again, we have those fat tail risks. Were the fed unable to cut and have a hike, thats another story. So i think were my base scenario is 60 chance of a softer landing. 40 of stagflation coming into 2024. Sonali Kathryn Rooney vera, were going to have you back soon. Thank you so much. Still ahead, were going to take a look at the Companies Making the most buzz on social media today. Our social climbers is up next. Our social climbers is up next. This is bloomberg. Awkward que. Is there going to be anything left. Left over . Yeah. Oh, absolutely. inner monologue my kids dont know what they want. You know who knows what she wants . Me i want a massage, in amalfi, from someone named giancarlo. And i didnt live in that shoebox for years. Not just with empower, we get all of our financial questions answered. So you dont have to worry. I guess ill get the caviar. Just kidding. Join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. Empower. Whats next. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future. A future where you grew a dream into a reality. Its waiting for you. Mere minutes away. The future is nothing but power and its all yours. The all new godaddy airo. Get your Business Online in minutes with the power of ai. Sonali its time now for socioclimbers. A look at the stocks making waves. First stop is spotify planning to raise the price for the second time in a year. The streaming giant will increase prices by about a dollar to 2 a month in five markets including the u. K. By the end of april. It will raise prices in the United States later this year and next up is wework. The troubled Coworking Company is predicting 8 billion in rental savings. And meanwhile, wework cofound irhas submitted a bid to buy back the company. You can follow all the plays company because on your bloomberg terminal. Its been a little over a week since the Francis Scott key bridge collapse in baltimore. We will look at the trading president and scenario. He joins us next. This is bloomberg. Ok yall we got 10 orders coming in. Big orders starting a business is never easy, but starting it 8 months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our business needs. The chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. aidyl hi, im aidyl, and i lost 90 pounds on golo. Unlimited card. I struggled with weight loss and weight gain my entire life. 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Sonali courts across the east coast are racing to absorb the cargo diverted from the Baltimore Harbor after last weeks collapse of the Francis Scott key bridge. Debris from the bridge is starting to get cleared but the aftermath is likely to be long and severe. We are joined by Abigail Doolittle with more. Abigail Something Interesting is despite the tragedy last week and what you were talking about, the uncertainty and debris, we dont have performance from some of the bulk carriers that would reflect that. Take a look at the shares of genco, up 3. 2 . International seaways up 5 . We have some strength. For the other carriers, small declines. Investors dont think the collapse will affect the financials of these companies very much at all. Relative to the ports this is some Interesting Data here. These are the ports that ships go to after they go to the port of baltimore. Norfolk, virginia, the biggest percentage. 26 . Charleston, new york, new jersey, halifax in nova scotia. 1. 2 . We dont know how much traffic is necessarily being diverted. Some of these ports could be affected and either a positive way in terms of ships going directly they are or may be negative if they have to go to the port of baltimore first and then go to these ports. Interesting to keep track and an eye on the data. The type of ships that go into the port of baltimore. We are looking at in purple at bulk carriers. 82. This does include the bridge collapsed on march 26. Down but not the lowest over the last year to date. Dry cargo, passengers, 46. Nonemergent and tankers. Its interesting to see the traffic for the week did not go down in a massive, massive way. Sonali we thank you so much for your analysis. For more on the shipping industry we are joined by John Wobensmith, Genco Shipping and trading president and ceo. Genco ships dry bulk commodities like grain. Lets talk about the shipping process as it has been changed over the last week. John we have been fortunate we did not have any ships in the immediate area. We have from time to time because baltimore is a large cold port on the east coast of the United States. What we have done is continued shipping globally. We move iron ore, coal, grains, and a host of other commodities such as salt, sugar, steel products, wood products. There runs the gamut and turns of dry Bulk Shipping commodities. Sonali what is the impact across your industry . We showed a stock strain about you and your competitors, how Different Companies have been impacted. What do you think the ultimate impact will be . John relatively small. You have to put into perspective theres about 25 million tons of coal split between thermal and mineralogical coal which goes to the steel industry. Most of that goes to asia, indian particular. When you compare the 25 million tons to the 450 million tons that china imported last year, the over 200 million tons india imported last year, it is not that large. Our expectation, and it is tough to tell right now but hopefully in the next few weeks there will be deeper channels that are established in baltimore. I believe it is more of a local economic issue than it is necessarily for global shipping, at this point and as we know. Sonali how do you see the road to recovery here . John i think its difficult to tell right now. This morning i watched the ntsb video of the guys on board that were doing the assessment. You obviously can still see massive amounts of debris on the ship and in the background. It is a little difficult to tell how long that will take to clear. From what i understand they established two channels but they are fairly really from work to again barge. They dont for tug and barge. Maybe 11 to 14 feet of draft. Are ships are anywhere from 30 to 40 feet of draft. I think it is a little while before an actual commercial channel can be opened up. Sonali there is the channel itself and the fallout from what happened in the first place. How do you think about the responsibility to the industry after what happened . John its a very difficult situation. We obviously dont know what caused the ship to have issues. I would certainly focus on possible fuel issues and contamination. Possibly an electrical issue that occurred on board. It is just too early to tell. Theres obviously a long investigation that has to go on. Sonali we were talking about the industry applications and about applications to baltimore as well. What about to the Commodity Markets . We are talking about critical commodities like iron ore, coal, grain. What is most impacted with a lot of these diversions . John its interesting. Shipping is in the new so much because we started out with the panama canal and the issues curtailing the number of ships going through the panama canal, which has a lot of grain on the dry bulk side that would normally go through there. Because of lower water levels that can only push through 27 ships today day versus normally 40 or 41. Then we had the issue that has taken place in the Southern Red Sea area. The unfortunate attacks on maritime assets. You take the panama canal, the red sea, that is adding 20 days just to u. S. Grain shipments to go around south africa and out to asia. Now we have this unfortunate disaster that has occurred in baltimore, from a dry bulk standpoint about 25 million tons. Some of that can be diverted and taken from hampton roads. Railed down and put on ships. Once the channel is open again there will be catch up as well, mostly for coal shipments. Its also a large car carrier port. Most of that is being diverted to other ports in the u. S. , including new york, newark, and a container port as well. Most of that can be diverted to other ports at this point. Sonali when you think about the supply chain disruptions and diversions is that short for saying among the most heavily impacted commodities would be grain . That implies food prices facing a bigger hit moving forward. John grain has been heavily impacted by the panama canal putting down the number of ships second go through and also the red sea. It was all most a double whammy that took place in a very brief period of time. Most ships now, and we certainly have been since the end of december diverting our ships around the red sea area and going around south africa to head out to asia. Sonali if you think about all these incidents are they isolated and oneoff, or are they interconnected . How do you plan for all of this . John it is difficult. Any time in shipping you have to be able to adjust quickly. Certainly i think having gone through the operational issues during covid in 2020 we are more prepared than we ever have been in dealing with the shortterm issues. I think the panama canal the panama canal was more of a drought issue and lack of rainfall. There is hope is we get to may and june the rainfall will take up in panama and the water levels will come back up and more ships will be allowed to go through. The red sea is i think a longerterm issue. I think its a difficult decision for a shipowner to put their crew in peril by going through the suez canal and then all the way down through the Southern Red Sea at this it is not safe. Which is why we are going around the south africa. Sonali put on your macroeconomic hat here. If you had to predict the direction of travel here between fuel and commodities do you think do things get a lot worse in terms of prices . John whats interesting is we have been shipping a lot. Not just a lot of iron ore and cold but from an unseasonable standpoint usually the First Quarter is the softest time of the year. What we have seen our higher freight rates. If you look at the guidance we put up for First Quarter a couple of weeks ago, we showed higher freight rates in the First Quarter that we booked in the fourth quarter. Highly unusual. Usually because of Rainy Weather in brazil there is not enough iron ore shipped. This year with el nino it has been very dry. The price of iron hovered around 150 for a long time. Inventory levels from china needed to be restocked. We had a perfect storm and freight rates outperformed in the First Quarter. Sonali we thank you for a look inside the industry. That is John Wobensmith of Genco Shipping and trading. Lets get a check on the markets with abigail. Abigail take a look at the s p 500 at or near session highs. The index had been down about. 1 , heading at that point to a thirddown day in a row. Breaking that streak and a piece of it is the fact the ism data came in weaker than expected. Some folks hoping that means the fed will be back Cutting Three times this year as some officials had recently suggested. Take a look at the tenyear yield. Yields are higher. Up five basis points. Yields not really matching the expectation of stocks in some way. The move pretty small. Oil at a multimonth high. Gold down ever so slightly. Yesterday we were talking about apple hitting a key support. Apple doing Something Different than the rest of the markets. Lets look at these movers. Taiwans Semi Conductor up 1. 6 earlier. Down on the tragic earthquake in taiwan, the worst in 25 years. They shuttered some facilities but now there is a headline out that they are expected to resume production overnight. Initially we had pressure on chips because of headlines. Analyst thought the closure of tsmcs facility in taiwan could in fact move the supply chain. Now it seems less likely that is going to happen. Amd popping in sympathy. Take a look at intel, down 6. 6 , the worst day since january due to the fact that the losses at one of its factories widening. That factory not expected to be profitability 2030. Investors not liking that in supporting the turnaround plan. I was talking about apple and the idea that it is deeply in this correction, down 10 from last years high, hitting on support. Looks like the selling could continue. Lots of fundamental issues around the iphone. The s p 500 and white. Apple the secondbiggest component. It seems unlikely this spread at this point is a 3 to 4 spread will continue. Somethings got to give. It is not clear if the s p 500 will follow apple or maybe we will see apple climb back up into its range to meet the s p 500. Sonali thank you so much for that analysis. Teslas sales wipeout is driving concerns about lagging ev demand. We will talk about that with david sandolow on the Columbia University. This is bloomberg. So, what are you thinking . Im 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 downpayment. On a ranch. In montana. With horses lets 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 youre planning for it all. The answer is j. P. Morgan Wealth Management. Abigail this is bloomberg markets. He was looking at a live shot jason pride joins limerick tv at 3 45 new york time. This is bloomberg. Sonali time for the daily wall street week segment. Teslas disastrous sales report is raising concerns about dwindling demand for electric vehicles in the u. S. We will bring in david sandolow, Columbia University inaugural fellow at the center on global policy, and david westin. David one of my favorite subjects is ev. Weve had growing indication that a ramping back of demand for evs in the United States. We have a new data point with tesla. Is that a tesla problem that we saw yesterday or broader issue . David s. thanks for having me. Two things are true once. Demand for electric vehicles in the United States continues to grow, but at the same time that demand growth is slowing. Lets not forget in 2023 there were 50 yearoveryear growth in electric vehicle sales. That led to a spate of stories about how growth was slowing down. It shows how High Expectations work. In the last quarter we have seen not just tesla but other slowdowns in electric vehicle sales. I think there are a number of factors we can talk about. I point to Interest Rates continuing to dampen the market overall for new car sales. With electric vehicles prices are just too high. The average price for the electric vehicle is around 50,000. Consumers are looking for lower prices. Then there is concerns about charging infrastructure as well. Sonali when you think about the adoption curve, how quickly can demand slow . It is the rate of change that many are worried about. David s. demand is up significantly in the past quarter. There is a range of projections. It depends upon a number of factors. It depends upon Interest Rates. It depends on how quickly new models come out and price points that consumers are more interested in. A number of the manufacturers, including hyundai, kia, others have had pretty good quarters as they put out some cheaper products. In china, we are seeing dramatic growth in the market with very low price models. I think it depends upon how manufacturers respond. In the United States, it depends on charging infrastructure. David we had brian deese on recently and he said one of the big gating functions for electric vehicles is the lack of charging stations. There is money in the Inflation Reduction Act to try to buttress that. How big is the problem with the infrastructure to support charging . David s. kitchen interesting chicken and egg problem. When you ask electric Vehicle Owners or potential buyers why they may be reluctant to buy ev they often pointed charging infrastructure. Once they buy the vehicle they use the public infrastructure. People usually charge their cars either at home or at the office. It is a cross between a cell phone and a regular conventional vehicle the way people use it. That is creating some distance model challenges for electric vehicle charging companies. The Biden Administration has been ambitious in putting out significant funding for electric vehicle charging infrastructure that is starting to roll out. This is the type of thing there is a snowball effect. Once we reach Critical Mass for electric vehicle charging infrastructure it will make a big difference in the market. David you mentioned price point. As we know, some of the big three from detroit made a conscious decision to go in with higher prices. General motors with cadillac. Is it time for them to rethink that strategy . David s. its a typical way of introducing premium markets is to come in at the high end and then move down cheaper. That is what the big three and other carmakers are doing. One of teslas problem is tesla has not put out a new model in a number of years. They are relying upon models are out almost five years ago. They have invested enormous amounts of corporate attention and resources into the cyber truck, a very niche product. They ar theyre cheap sedan which is coming still projected to be a few years away. Its a big issue for tesla and the rest of the market. Sonali i want to draw on your government expertise. You have been at the department of energy for a while. When you think about the administrations plans when it comes to electric vehicles how important is that for them to step in in this way . How much can those charging stations still demand . Stoke demand . David s. government plays an Important Role here. There are three major markets for electric vehicles now around the world. In europe, the United States, and china. We have seen governments playing roles in all three of those geographies. Government has incentives but also it plays a Critical Role in the infrastructure of element. David china has made a priority of electric vehicles. They are really subsidized a lot of their operation. We have very lowpriced vehicles from uid. Byd . What we have antidumping will we have antidumping . David s. we are seeing chinese vehicles move around the world and its a significant trade issue in europe. The german industry is very concerned about this. I think this absolutely is going to be a real issue going forward. They will be strong pressure to protect the u. S. Market against the entry of chinese vehicles. Sonali lets expand on that. How important is it for tesla and the other Motor Companies to be catching up for the sake of american competitiveness . David s. one thing we have seen in the past couple of years is the manufacturing in the United States due to policy interventions and bold moves by the Biden Administration. I think american competitiveness is key here. I grew up in the great state of michigan. Great manufacturing center. It has been for a century a home of the automotive industry. It needs to stay ahead of the curve and is staying ahead of the curve for the vehicles of the future. Sonali david, thank you for your time. Columbia University Inaugural fellow on the center of Global Energy policy. David a treat for me and maybe is a long discussion with ray dalio, legendary investor. He was on wall street week in 1982 and was adamant about what would happen in the wake of the mexican sovereign debt failure. He said it almost drove his company in the bankruptcy. He will talk about what he learned that might apply now. Sonali very much looking forward to that conversation. Stick with us. This is bloomberg. Sonali lets take a look at stocks hitting 52 week highs. Caterpillar hitting a high after news departing boeing Ceo Dave Calhoun will also leave the board of caterpillar. It comes less than two weeks after calhoun pledged to step down at boeing which is grappling with the most severe prices in years. Santander hitting highs after it was raised to a buy. We will talk to ross gerber. He joins Bloomberg Technology next. The Big Conversation around tesla and elon musk and much, much more. That does it for bloomberg markets. This is bloomberg. Hi202 pounds on golo. E lost so the first time i ever seen a golo advertisement, i said, yeah, whatever. Theres no way this works like this. And threw it to the side. A couple weeks later, i seen it again after getting not so pleasant news from my physician. 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Announcer from where the heart of innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and ed ludlow. Caroline i am Caroline Hyde in new york. Ed this is Bloomberg Technology. Caroline the latest updates on the earthquake in taiwan as the island faces its worst seismic event in 25 years. Full coverage ahead. A look at the broader implications of this human tragedy for the global economy. Ed