Transcripts For BLOOMBERG Bloomberg 20240703

Wall street enthusiasm for stocks fade out and go to advance that really the s p 500 to his longest run since march. Let us get a check on the markets because you had s p wavering and flipping into territory now from the read of point 1 lower than the nasdaq 100 even more than that,. 1 as well, the Dow Jones Industrial average is still in the green and the fix is still cool at a 13 handle and lettuce of the board look at the asset, with the picture looks like and the two year weird about the 10year yield under the four 50 level, some key auctions on the longer end of the curve and your crude is breaking into 80 but still around 79 and still up by point 8 higher. Reddit shares are higher in the First Quarter and well above the average analyst estimates and reddit pointed to improvements in ad targeting technology. This is too far below the midpoint previously issued because of a new u. S. Ban on chip exports to china tech giant huawei and revenue will remain within the previously guarded range but the be below the midpoint. We will have an interview with the uber ceo and shares are down. 8 . We ascended over to our balance of power colleagues, when lawmakers Raphael Warnock on a busy agenda and washington. An exclusive interview with Raphael Warnock and his first time on bloomberg tv and radio and he sits on a Key Committee that is in focus this week the senates Transmission Committee which is leading the fight on the faa reauthorization bill. Thank you for being here on bloomberg and of course you and your colleagues are up against a deadline, friday is when this reauthorization has to happen and there needs to be an amendment agreement to have it happen quickly, where exactly do things stand . What amendments deserve to get a vote . It is wonderful to be here with you. Listen, our Aviation Industry is so very important to the American Economy and of course we want to make sure that consumers and buyers are safe and that our Airlines Operate in an efficient manner so this comes up every five years and im on the Commerce Committee and we have been working on this bill for more than a year and i have been especially focused on the issue of bolstering our workforce pipeline. We have a shortage of pilots, aviation mechanics, other people working in the industry and we are clearly pulling from all of our human talents so i have provisions in the bill that address that along with other things and i remain hopeful that we will get all of this over the finish line before the deadline comes friday. In your mind there is not a chance that a shortterm authorization need to happen considering this does not need to make it for your chamber about the house as well . We are in the midst of the sausage making that happens in congress, i think that there is a commitment, a large consensus that we need to try to get this over the finish line and i remain hopeful that we will. Senator, there is some disagreement even between you and some of your other democratic colleagues to certain provisions including more flights out of dcaa, the airport just down the road from where you and i are, it is opposed by senators in neighboring states. They are all opposed to this and i know you are for it, what do you say to those who say that this could lead to further delays or safety risks . We respect them and i have affection for my colleagues in maryland and virginia but they are wrong on this issue. To put it bluntly, they are just wrong. This will not compromise safety in any way and we have addressed the issue with the faa and basically we want to make sure that flyers throughout our country have access to the Nations Capital and this is the seat of government and basically this is a modest proposal that will add about 1 to dcas daily operations and i think that my colleagues respectfully have certain interests they are trying to protect in their and their safety issues do not hold water, we hope we can have some more flights and it is just a handful of flights coming in and out of the airport that serves the Nations Capital and people west of the mississippi. They should have access as well as folks on this site to go back and forth every single day. In addition to serving on the Transportation Committee also serve and a few other Key Committees including the Senate Banking committee and i would like to lean on that expertise you have for a moment if you will, we got a report out yesterday that independent thirdparty probe into a toxic Workplace Culture at the fdic and there are some republicans who are now calling for the resignation of the fdic chair, do you think he should resign . Let me say that i am still reviewing the report, what i am seeing, what i am seeing is concerning even disturbing, but we will hear from the chairman in just a few days and he will appear before my committee and we will get a chance to hear from him directly and we will see where we go from there. Fair enough. Let me be clear, an abusive and toxic Workplace Environment where people feel that they are being abused in some way, that is hostile, to the work environment, it is intolerable and one way or the other, it will have to be addressed and you will we will make sure that it happens. We look forward to the testimony before the Banking Committee in just a few days and there is a lot that is still happening including israel where there have been moves into rafah and the gaza city in which more than one million palestinians are taking refuge and we have gotten confirmation from the Defense Department and the secretary that the u. S. Has withheld a shipment of bombs to israel over concerns about how they may be used in rafah. Is this appropriate for the administration to be doing . I am concerned about what is going on in gaza and i am already on the record and i said many weeks ago that i am concerned about any incursion into rafah. I pray for a day where israeli mothers and fathers and palestinians can do for all of us want and i have two young children, to put your children tonight in peace and we got to a world that embraces all of them. We want to make sure that we keep an eye on the situation that we need to have a cease fire. In this situation. Israel has the right to defend itself and i am deeply offended and hurt by what happened on october 7 where we saw this attack where we saw rape and Sexual Assault used as a weapon of war, but i am also very concerned about over 30,000 palestinian lives that have been lost in this conflict and the majority of them being women and children. And so, i am hopeful that at the end of the day, we will recognize that the answer to death and destruction is no more death and destruction. Your Chamber Together with the house did ultimately advance supplemental funding not just for israel but other allies as well and of course your doing the work to finish the job of further efforts that need more immediate intention including the reauthorization that we began the conversation with and finally there are things that may not be attached to the legislation because in all of the legislation can get a vote, will there be any other major vehicles in which legislation can get done for the remainder of the congress . That remains to be seen and we remain engaged and there are a lot of issues to address and i am glad that as part of the faa, part of what will happen is we will reauthorize the National Safety board Like Alaska Airlines and the Train Derailment and in the bridge in baltimore and the bridge i know well and i pastored in baltimore and we are rooting for our friends the congress understands on both sides of the aisle that that is important to the national economy. They will remain focused on these issues. We hold the worlds busiest and most efficient airport, archewell and jackson, i hope that by the end of the week we will be able to say to our constituents that we got this done. The democrat from georgia, thank you so much for joining me in this exclusive conversation on Bloomberg Television and radio. We would like to keep the focus we want to bring in emily chang who was standing by. Thank you for joining us today, again, obviously, you can see that growth is continuing on both sides of the move and this is disappointing after the progress is made and lived shares are up, what is the message to investors . The message is that we continue to deliver on consistently strong topline growth and an outsized profitability growth. Use our trips for us increased 21 on the year on year basis where we had a run rate of 10 billion trips on an annual basis which is pretty incredible and gross bookings grew 21 as well on the cause and currency basis and our group came in at 1. 4 billion of 80 2 and also translated into Free Cash Flow. 4. 2 billion over the past 12 months. We did swing into a loss but significant factors behind the loss was actually the value of equity stakes and some of them have been marked down and markets go up and they go down and we cannot control that and what we cannot control is are we building a big business on a global basis . Are the more customers coming to us and our audience grew 15 , frequency grew 6 , as long as we continue to deliver on our service and on the promise of mobility everywhere and delivery of food and groceries, we will be more than fine. Cap operating profit dropped by in part due to what you described as regulatory reserve changes and settlement. What are the headwinds you are seeing and monitoring . I think some of the settlements are four issues that have occurred in the past and what we are trying to do now is operate in a way that takes into account all of our stakeholders and all of our riders and regulators and clean up some of these past liabilities and move forward and do the right thing for everybody. I spoke with you and instacart ceo yesterday and obviously your new partnership is a bigger deal now that is not just exclusive to instacart, can you talk about the other partnerships and services you could potentially plug in uber eats like im thinking netflix or youtube or tiktok . We are focused on making this work on instacart and this all started from our building with our uber superapp, you can order food off of the eat stab auto burg and that business has been growing significantly and consumers love it and if they want to go to eat out they can, if they want to eat and they could do that on the app as well and that has led us to discussions with bg that we talked about and the focus right now is really making sure that our Instacart Partnership works. It has a strategic Customer Base in the suburbs where we were already growing and we want to grow faster. That is going to be the focus but the technology that we build allows us to essentially embed an absolutely first rate uber eats experience and two other apps as well and you could imagine and bedding in an embedding Sports Betting apps, that is absolutely something that we could deliver technically as a result of our engineers and right now the focus is let us make instacart work and i am sure that there will be some growing pains and therell be some tuning to do in terms of the tech and experience and we will go from there. This robotaxi news out of china and obviously, your story with Autonomous Vehicles has been a little up and down and will we ever see Tesla Robotaxis on order on uber . We would welcome it. Our view as it relates to autonomous is this is a technology that holds great promise in terms of expanding our market and lowering prices and making transportation available, safely to more and more people, it is taking much longer than anyone imagined. We do not operate in china, to the extent that tesla operates robotaxi fleets in china that is not something that we would engage in. What we do have told the industry is we are here to partner and you can essentially plug in your vehicles as long as they are safe and regulators are aligned as well into our network and the demand that we bring come all of the services we have built in terms of matching and routing and pricing we can bring that all to you day one and that results in higher yield like they should higher utilization and if there is a tesla owner who wants to put his or her car into the uber network, they will make more money than if it was not in the network, we love to work with all players and we have a lot of respect for tesla and there are a lot of teslas in our fleet already so we absolutely welcome safe tesla Autonomous Cars in our fleet too. Im hearing more and more people who are taking waymo, can you tell us about how that works financially speaking . Do they get paid a fee for referring rights to uber . Do you operate a fleet . What is in it for you as an aggregator . We do not disclose the financials so to speak, we operate with them in phoenix and actually we operate both on the mobility side and on the delivery side. They are in phoenix and they are taking uber writers and they are actually delivering food to eaters as well as we expand the use cases there. I think what you can imagine the model being in this is not specific to waymo, we have a take rate with human drivers, about 79 of our gross bookings go to drivers and couriers and merchants and we keep about 21 of it and that kind of a model will be true for autonomous as well. We will have a fair take rate and we will drive a ton of business to these autonomous players and again what we are already seeing with some of our partners is higher utilization and more business for the drivers so to speak whether that driver is a human or ultimately a robot. Uber is such a bellwether for the economy, inflation has stalled, what is your read on the broader economy and especially in an Election Year . So far so good, we read all of the news that you do and we talk to many, many partners out there and we are not taking prices, we want to take as little price as we can come our transactions grew 21 and our growth bookings grew 21 and we want to grow based on expanding our audience and increasing frequency. When we look at our Customer Base you look at the volume, 21 growth this quarter, next quarter, mid of guidance is between 20 and 21 growth as well and we see very consistent growth and we do not see consumers trading down or eaters trading down at this point, we see a lot of strength in terms of our uber business so to speak. We see a lot of strength during workday and commute, people are going back to the office and maybe a little bit more slowly than we would like but people are definitely going to the office and at this point, we do not see signs of consumer weakness and there are some partners that we talk to who are focused more on lower value or Cheaper Products and they may be feeling it. But at this point, uber volumes remain healthy and the nature of the volume remains healthy as well. Has to ask about uber teen, obviously, this could be Game Changing for working parents, how big of a business can this be and why should i trust my kid with you . We think it can be a very Large Business and it is turning out to be a very Large Business. The reason is uber has industryleading safety characteristics that really no one else has and with teen, you have to invite your teenager when we offer uber teen as a service to only the best rated drivers. There is a pin to make sure that your teenager is getting into the right uber and you can track the uber as a parent, i track my kids as well, make sure that they are picked up ok, make sure that they are dropped off ok, you can reach out to the driver directly as well, all of the safety features put together i think help put parents mind at ease and it has been one of our most beloved lodges out there and right now we are just looking to expand it into more markets because the demand is absolutely there. Alright, i have not tried it yet but i think maybe you convinced me . Thank you. Thank you so much for joining us as always, we appreciate you. Sonali thank you for the interview, there was emily chang and uber ceo and the uber ceo. This is bloomberg. I cant believe you corporate types are still at it. Just stop calling each other rock stars. And using workday to put finance and h. R. On one platform. Tim, you are a rock star. Using responsible ai doesnt make you a rock star. It kinda does. You are not rock stars. clears throat okay. Most of you are not rock stars. Oooh. Data driven insights, and large language models. Oh, thats so rock roll. It is, right. He gets it. Yeah. Sonali this is Bloomberg Markets and it is time for the wall street beat. Authorities in hong kong have charged up against a Prominent Hedge Fund firm for crossing a legal line in pursuit of market moving information and profit and across the financial world now the allegations are raising questions about how the firm operates and how banks and clients might react and how for the probe might reach. These are two banks looking to limit dealings once again, according to bloomberg sources, it will defend itself vigorously. We take a step back because it has been a week or so and let us talk through what exactly they are facing in terms of allegations . They are facing allegations in hong kong about a specific block trade and about having access to nonpublic information and that it is raising questions , going across wall street, the prime brokers are all the major banks and they are a big player in block trades and stock trading. We have reported for that all of the banks are taking a look and deciding what to do and we have now seen some moves being taken and jp morgan, a kind of putting things on pause, in terms of new business and new block trades with the firm. Some other banks are also considering options or perhaps staying with business as usual while this Legal Process plays out. We described him as a blog tradeking, how big is this business and how do we think about his place in this world . He is a major player and particularly in asia, the Hedge Fund World is not as developed as in new york but they are a major player with a lot of money and have had a tremendous return, to percent annual returns since they launched. I have made a play in block trading, it is under the microscope right now and we are seeing Morgan Stanley having a settlement there and it is a tricky world see what the interest is in these large boxes of stock without tipping your hand if you are the bank where the client. Sonali is this kind of part of a broader global look into blockchain . This does pop up from time to time and it is unclear how gordon aided this is but it is an area with some gray around it in terms of the best practices and the rules and this not wanting to let inside information slipped while also trying to gauge the market. That leads a lot of area for potential missteps. Sonali we thank you so much for bringing us this story, it is a story that keeps building, that is Michael Moore who is releasing finance coverage here. We dive into private credit and the world of risk within it with an of moodys, ana of moodys, that is up next. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. This is, the rally in the s p okay, thats uncalled for. 500 hitting some resistance today around the 5200 level here and we take a look at the markets, the s p 500 losing some steam and now in the red, for today, earlier we were still in the green, same for the nasdaq 100, Dow Jones Industrial average still in the green come up. 2 you also have the bigs relatively low and it has been staying this way this weekend look at the markets again, on a macro perspective, the two year above 4 but looking for below for 50 and8 crude is at 780 77 two year above 458, krudys at oil is that78. 77. Sonali the hinge app is also facing headwinds, down 4. 4 in tesla is moving under on a report after they are taking statements suggesting that the cars can drive themselves and investigators are exploring whether tesla committed wire fraud or security fraud by deceiving investors on whether teslas autopilot and full selfdriving systems are not fully autonomous. Tesla shares are down less than 2 and warner bros. Discovery Just Announced plans for a fresh cost cuts and it will hike prices for its max streaming product and we will bring you more information as we get it and of course we see a discovery share rising. 1 . We moved to private markets because we are joined by moodys global head of private credit ana, the exuberance you are seeing in this market, they shift from public to private, it has not come without risk and what are investors missing the most . Thank you for having me, the market has been as we know, for the last couple of years and continues to grow, what you are seeing as the most growth is aptly focused as the largest players benefiting from fundraising and what we are seeing as well is fierce competition and we are expecting to enforce this to look like 2020 one, exuberance in terms of the situation of credit and only because of the private market competing amongst themselves, but also there is a lot of refinancing as there is a publicly finance market publicly financed market. Even if you see rate cuts earlier you do have a 10 year that is close to 450, higher rates we have seen then we have seen in the last decade. At what point do they eat into the quality of what we are seeing in borrowers . We have already seen it and we have decided to differentiate, some of the funds, the Business Development companies, 80 of the total assets of the private credit universe, considered more elite if you will and the transparent part of the market and we see we still have stable outlooks and we do for the entities on the phone because we saw the differentiation of this jumping significant between cash significantly between the first and Second Quarter of this year,. They want to have private credit funds and we have 0. 1 of credit. There be that differentiation and we tend to the underwriters that did not have the proper terms in their agreement. Sonali do you worry that the terms are too fast and loose . Definitely, we mention 2021, the exuberance of weak credit terms, everybody is giving up and only pricing and what we are seeing is the pricing even in the private credit markets when we see refinancing happens has been on basis points and of that credit refinance is in a Public Market, there is a saving of 200 basis points, that is good for the credit that can refinance in the Public Market but if you can not, you have some terms or some more terms that will be in the market, there were no accept and you still basically see them pay up 25 or 75 basis points more. Sonali moodys has targeted worsening conditions, that is a big place where loans are really offloaded with a healthy clo market, there is worry about how much issuance can continue. Where do you see things going . We usually publish the report as a matter of fact and today we are missing that 25 of the credits within the middlemarket clos. We do expect that situation to continue, as the higher rates will go into the credit quality of some of the horrors and to us what is interesting is an opening but we have a very big year and still on certain about Monetary Policy and also as we know, a lot of evictions coming up globally and i think there is an opening now in this quarter and the potential to in the next quarter but things get quiet and there is a lot of love through finance and getting deals done and m as is very weak still. What do you think about the default rates we could see here . What are you expecting for the rest of this year and into next year . We basically had a peak default rate from the 2020 cycle into now of 5. 8 percent. The private lenders, the only ones who can be seen as being in the season, they have been relatively well averaging around 1 , they are also doing well except for the outliers which i have mentioned which have made a change but we expect that considering there is an opening of the market from the perspective come available for refinancing at a cheaper cost and there is still a constructive market environment basically we are projecting self lending if you will and a recession and we do expect that 5. 8 . Sonali moodys had downgraded some of the more prominent vbcs in the market, like black, kkr, oaktree, is there something about the structure in particular that lends itself to a little bit more stress than perhaps some of the private vehicles . That is more feasible, we do not know what is in the private vehicles. But his risk overall. Transparency what is out of there. 1. 33, the statement has been performing really well, the leverage, although the vbcs are running with low leverage compared to historic standards. Is it structurally weaker . Not as much, still very low, much of the rate is still doing very well. Sonali one thing i worry about is you have so many of these funds raising big dollars, some recordbreaking funds here, getting ready to Deploy Private markets but you have set up this morning with this vintage, the money being put towards this year and it could be challenged. The funds that are putting money towards this year, would you be encouraging investors at this point to urge caution to the market terms a little bit more and to Getting Better valuations . We think the right time to deploy capital in private credit was 2022 and the first half of 2023 and 2024 will be challenging from credit perspectives and the ability to price, look at the diligence when we discuss our area we are asking how people are reacting in this environment and we want to hear it standing by and really appreciating that to the extent that you have to come being paid for it, and transactions that you have to play and you taking a smaller piece of the pie, that is the discipline we are looking for. Sonali thank you for keeping an eye on this market, heavy dose of reality here and that is the head of private credit and coming up next we talk about shopify, posing a net loss, surprising wall street and it does become our stock of the hour, that is next. Super excited to open up my diploma from Southern New Hampshire university. Im nervous, im excited. [man] okay, lets see it. Lets see it. Oh my gosh. Jesus suarez, i did it and its here. group cheers [narrator] next term starts soon. Visit snhu. Edu. Visit snhu. Edu. Sandals jamaica sale is now on with rates from 199 per person per night. Visit sandals. Com or call 1800sandals we have always managed a business in a longterm way we are seeing at shopify is this new shape of shopify is unlocking our potential and we are helping all types of merchants take more and more of our products and let us break down how the quarter went, we generated 2 billion of revenue and that was up 23 and 1 billion of gross profit and very important, we have Free Cash Flow 232 million for the quarter and Free Cash Flow margin doubles from q1 of last year and you are seeing one of the best versions of shopify with a ton of opportunities whether it is enterprise, physical retail, international, we are very excited about what we did in q1 and we are excited for the future of this company. Sonali the shopify president speaking this morning bringing us to the stock of. The. Hour you can even Ecommerce Company stock of the hour. The Ecommerce Company Sales Outlook suggests that the growth story could be cooling. Bloombergs john joins me from toronto, what is the biggest take away . I think the expectations were pretty high and as the president outlined their this is a Growth Company and it continues to be a Growth Company, like a lot of technology stocks, the shares have run pretty far and fast, up more than 120 percent and when you have an outlook that falls short of expectations, even if it is a growth story, wall street pays attention and they are talking about Revenue Growth in the high teens for the Second Quarter, a lot of companies would kill for that but if you are talking about a company that in the same period last year had more than 20 growth in really sincerely had the same stretch of 2022 and has more than 20 of Revenue Growth, there is a cool down and people are asking questions. People pointed to spending patterns and europe and people talk about competition from the likes of temu, on top of that, the fact that they are pretty optimistic about the margin picture and the fact the operating margins in the shortterm are taking a hit, which seems to be tied to a continued spending on marketing. That is what wall street is trying to balance out. To the points from the president , they think if they spend that money on marketing, that will pay out. Wall street is working through that right now. Sonali earlier it had its worst drop on record and you are still facing the worst drop since 2022 on an intraday basis. What do investors really want to see at this point . Is it going to take them time to appease investors . I think these earnings in particular are coming at a point in the earning cycle where we are now starting to ask more questions about the health of the u. S. Consumer. There is a certain amount of sensitivity and all the sudden if you are protecting lower growth in revenue the Second Quarter, people start asking questions and the other thing we heard from the president about the cash flow picture is one of the most fascinating developments in ecommerce does not matter if you are in canada around the world, with shopify, or around the world, with shopify, they built out this Logistics Business to complement the ecommerce platform and it makes sense. Give merchants an opportunity to use your logistical tools and it did not work out the way that they wanted and they got out of the business and had a big deal with some other divestitures. It made a muddy picture in the short and investors are trying to see what things look like down the road from that. There does seem to be a pretty strong view from the analysts that this is going to ultimately be better as a result of exiting the business and i think it is one of the many parts of the latest quarter of results. Sonali thank you so much for keeping an eye on the shopifys shares and tomorrow we will speak with one of shopifys partners, the ceo of a ffirm. These companies have their fates closely aligned and talk about the fate of the consumer. Ukraine funding, one man says it is a massive mistake to stop now, we speak to Howard Buffett, Howard Buffett Foundation Chairman and ceo, 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. Sonali this is Bloomberg Markets and i am sonali and defd then on the front line it is ready to go off. Every single day ukraine is losing a bit of ground, not very much, but it has been consistent and there is a simple reason for that because they have run very low on ammunition because europe had not been supplying everything they had been offered to supply in the United States spent five or six months arguing whether to provide additional assistance. Sonali if you had the conversation with a president or congress at this point, what with that conversation look like and how receptive has congress been to having a conversation with you and the foundation . I talked to a few people when they contact us and we try to stay out of the politics of it, the first part of it is that we are in this war whether we want to be in it or not, that is not about sending a package every five months or six months, it is about the fact that putin has said that they were in ukraine is a proxy war against the west and the United States and against nato. He has threatened that he is going to proceed on past ukraine when he thinks he will defeat ukraine, we cannot let ukraine be defeated, we have to help them win this war against russia and russia has engaged all of the enemies that we have in the world, they are actively involved with iran and north korea, they are providing missiles and drones and ammunition to rush to fight ukraine. This is essentially a world war that has not been defined as a world war because you have 50 countries engaged in it and if we do not fight it on the terms that are in front of us today, we will be fighting it on different terms in terms of when pressure is on the borders of whether it is finland or romania or poland and they decide to invade a nato country. We do not have an option except to honor our agreement to nato. Sonali you alluded to the mostly and congress that has been going on when it comes to ukraine the muscling in congress that has been going on when it comes ukraine. They have been stepping up to foundations to provide private money to the war in ukraine . There is three buckets, one is obviously the u. S. Government, other western allies that can provide military aid, then there is the philanthropies such as ourselves that can provide humanitarian support whether it is providing meals, agricultural areas, investigating war crimes, crimes against humanity, and any other buckets investment, it is a tough sell when a country is at war for investments but you just saw the announcement the other day, the largest Telecommunication Investment in ukraine which is happening right now and you have other areas like logistics and Food Services and there are other areas where companies can invest and there is still a large amount of ukraine into our buying things and using services and there are a lot of ukraine into a very willing to work. Ukrainians who are very willing to work. There are still many opportunities. Sonali how many people are already thinking about the reconstruction and the opportunity here to invest in ukraine as it heals . Where are the industries that are showing the most promising and what are the Companies Looking to be a part of it . There are some obvious industries who are part of the reconstruction but when people Start Talking about reconstruction i remind them ukraine has to win the war first. In reconstruction you will see health services, you will see a huge area for investment in the Energy Sector and you will see obviously some investment in the defense sector, then again, the Services Industry will come back. You have different u. S. Companies operating in some places in ukraine and you have where they are not operating in others, based on the threat level or the risk level and that is obvious. It is not easy to talk up investment during a war. It is to look for those industries or companies that can take advantage of the situation and invest or at least continue to operate and that is what ukraine needs, this country is trying to survive in terms of economically and that is one of the big challenges, as they are attacked by russia every single day. They need the continued support of businesses that are operating there or they cannot operate there. Sonali before i let you go i want to ask you because we are days away from the annual meeting in omaha, a lot of investors thinking about Berkshire Hathaway and its future and of course you said you are on board with Berkshire Hathaway, i wanted your thoughts on the entity who built your familys wealth and the direction that it may be taken to in the future . Im careful about commenting on berkshire as a director because i think that is management responsibility. Berkshire has long track records of success and there is no reason to think it will not continue with success. Greg will be a great ceo but beyond that, i think i find it better to talk to the management and at they think. Sonali thank you for joining us on your thoughts in your effort, the Howard Buffett Foundation Giving more than 800 Million Dollars in aid to ukraine. Before we let you go, quick check on the markets because we do have a turn in these markets on the day, we have a winning streak for a while we are looking at the s p 500, down. 1 and the same goes for the nasdaq 100, a little bit of a bit in the bond market but still hanging around. 483. Up, relative calm in these markets, even on a down day, that does it for Bloomberg Markets, stick with us, more markets and more news from washington ahead. This is bloomberg. grunting at Morgan Stanley, old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. When i was your age, we never had anything like this. Old school grit. Newhat . Wifi . As. Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi with xfinity. From the world of politics to the world of business, this is balance of power