Uranium etfs. Im Katie Greifeld in the york and welcome to bloomberg markets. You look at the board. A lot of green on the screen right now. S p 500 higher by. 4 . We are on track for a second straight week of gains. It feels like a while since we have seen that. You look at big tech. Currently higher by about. 6 . Your leader right now is the semiconductor industry. The Philadelphia Semiconductor index up about 120 on this friday 1. 8 on this friday. We have breaking Consumer Sentiment data crossing the terminal right now. Mike mckee joints with all the details. Michael i apologize. Its a nice friday and you are all in a good mood. The American People are not. We have a big drop in the university of michigans sentiment for the month of may. 67. 4, down from 77. 2. Current conditions fall to 68. 8 from 70. The outlook falls to 66. 5 from 76. The headline number is the lowest since last november. People are not very happy across the country. Coming up we will try to get more on that from joann hsu from the university of michigan on bloomberg live. We have the inflation numbers. The numbers are not going to be cheerful for anybody either, particularly at the fed if youre looking to cut rates. Expectations for one year ahead inflation jumped to 3. 5 . Five and 10year inflation to 3. 1 from 3. 0 . Top to bottom disappointing report. Katie like you said you have the inflation figures. You look at the twoyear yields. Currently moving higher in the wake of the report. Put this forward and lets talk about next week. We get cpi next week. That is really intimately linked to how people feel about this economy. What are we expecting to see . Michael the forecast is cpi will drop a little bit. Not a lot but resuming its trend downward. That is what the fed is helping. You look at the michigan numbers and its interesting. But we have done here is offset the what we have done here is offset the year for the university of michigan numbers and cpi. What they were looking at the year ago is not necessarily what is happening today. Consumers dont seem to have a very good ability in recent years to predict inflation. That is the one good note about this for the fed. People think inflation is going to go up but maybe it isnt. Katie maybe it isnt. Mike mckee, thank you so much. We will be speaking live with joann hsu from the service of consumers director now for incident analysis. You can found that on live go on your terminal. Turning to the markets, lets welcome in kim forrest. Lets talk about earnings season. 87 of s p 500 market cap has reported to this point. It is pretty punishing. You look at the companies that have managed to beat expectations. It feels like they are not getting rewarded as much as they might have been a couple of quarters ago. If you missed expectations, good luck. Kim absolutely. Whenever i try to describe my job, and its so crazy. We look forward to earnings season. We have to admit we dont really care about what happened in the last quarter. We only care about happened in the last quarter as to what informs the future. This specially looking at arm gosh shopify and some of those, they had some pretty good earnings and then they were killed. We always have to remember that todays data, and that could be the data we just got informs what we think the future is going to hold. Investors who put their money to work, their ideas attached to money so we think about what we do and we pull the trigger, we put that to work and make the future happen. Katie lets talk about what the future could look like. We got some data that speaks to Consumer Sentiment, how people expect inflation to develop going forward. It is not look good when you marry that with what we have heard from companies, the guidance that was given. What future is Corporate America painting right now . Kim they are painting a low vol picture which is what the kind of have to do. There are rules and laws. The fcc makes them give reasonable expectations. Nobody likes to be punched in the gut with really bad miss es. Companies have every incentive to give a slower guidance than what their sales teams might be thinking. We will put it that way. With a sour consumer i think everybody is sour now. If you go to the Grocery Store it is one of the most shocking experiences ive had in a long time. Checking out with normal groceries and i paid what for that . We are all having that shock. It may not be going across everything that we buy. Housing prices. If youre a homeowner, you look at what your neighbor just sold his house for. You like it and hated at the same time. Hate it at the same time. Groceries and gas are way more than people expect. That is the problem. Katie its an important point. Shopping at the Grocery Store recently, its a humbling experience. With that said, is it safe to say we have reached the limits of Pricing Power . That the consumer will not accept any more . Kim i think so. We are seeing that weird places like snack foods. People are just not buying them quite as much. We saw that in pepsis earnings. The volumes are down. We can expect that in a lot of areas that are discretionary spending. Companies beware. Companies dont really want to raise the prices like this either. They know it will kill their results. It is a tough time for everybody. Katie its a tough time. You touched on this. It is strange we are finding the pockets of strength. They are known for very expensive salads. You have fresh pet last week also managing to post up some big numbers even though they are known for extensive pet food. How do you wrap this all into a portfolio . How do you pick and choose your spots in this strange environment now . Kim first of all i have to say most people, even professionals like myself are really lousy about accurately predicting the shortterm future. Lets extend our timeline. There are things we know. People want to buy houses. Millennials and the next generation want to grow up and have families. These things are going to happen. It is three to five years in the future or beyond. Ai is going to be a thing but not play out immediately like everybody expects. You have to have patience in a longer timeline. That would serve all investors will. Katie when we talk about ai it feels like the two things we talk about are the Housing Market and ai. Its been striking watching how much money is going to be spent on ai you look at some of these tech companies. Im wondering what signal you take from that. Pc apple and amazon, whoever you want to name, really talking about big capex they will spend on ai, how do you view that . Kim as someone who was a Software Developer at ai companies in the 1990s i know it is very expensive, very time consuming and art to create ai technology. What investors dont understand is what they should be looking for is not the build out of ai, which is interesting, but the longerterm who will use and develop ai that people find worthy to buy. For meta and maybe for amazon ai is probably going to be used market things better. We can probably be manipulated by a machine a little bit more effectively for the companies that use it. I am being kind of sarcastic here but they are probably going to benefit. A company like microsoft can help its clients become more productive. Those kind of uses are things im looking for. They are under the radar. Ai, not just generative ai but all forms of ai are going to help companies become more productive. Katie you make an interesting point. It is worth extending your timeline thinking about what type of businesses will be the users of ai. If you think about the stage of the investment cycle when it comes to ai, it feels like people are going up to the picks and shovels, the companies that are powering ai such as nvidia. It sounds like you are saying look beyond that. Kim absolutely. This is going to i dont know if anything really pops up. Microsoft is probably the only place i think they have a whole lot of data that they can provide Better Services for the client to mine. Thats a nobrainer. There will be other quirkier things. Oh, i should have thought of that. To be on the lookout about where people have data or there is a lot of wasted human activity that it machine could do better. Those are the kind of places im looking for investment opportunities. I think everybody should. Katie be on the lookout and be creative. Have a great weekend. That is kim forrest of bokeh capital. Lets look at whats moving under the markets with bailey lipschultz. We will talk about ai. Billy starting with sound hound ai, one of the og names. Back in january of 2023. Up more than 20 . Revenue results showing the growth and talking about the backlog and how voice ai is becoming the musthave. They target touted their partnerships. Beginning to scratch the surface. It still is a really volatile stock. It did go public via spac. It popped above eight dollars, closer to nine dollars earlier this year when nvidia unveiled or disclosed their position in the company. A volatile stock. Katie saying all the words people like to hear. A big day her sound hound. Sweet green. Holy moly. Bailey you know i love to take a holistic view. Its actually up 20 from its ipo, not near the level it opened back in 2021. Up 41 . The thing that stood out to me, the ceo talking about their automated stores. Faster throughput, better order accuracy, portioning consistency. Basically saying they plan to open seven new locations and retrofit three or four urban Stores Starting with one here in new york city. You may be having a robot make your salad this weekend. Katie i would love to do a taste test, robot versus human. That would be a lot of fun. Sweet green absolutely sobering right now. It is not all good news. Yelp. Bailey talking down guidance. Below what wall street was looking for. The stock relatively flat today. Not really a big move. The company is dealing with macroeconomic uncertainty, also competition concerns is something analysts called out. If youre using things like chatgpt or various ai companies to tell you which restaurants to go to. Maybe you are not leaning on yelp as much. Not much of a drawdown for the stock today. Katie yelp down about. 2 . Bailey lipschultz, have a great weekend. Novavax source after signing a billiondollar licensing deal. Emily field of Barclays Says the timing of the transaction raises questions. She joins us next. This is bloomberg. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. The all new godaddy airo. Put your Business Online in minutes with the power of ai. Katie shares of novavax are absolutely surging today after it signed a deal with french drugmaker sanofi. A 1. 2 billiondollar licensing agreement. It includes commercializing a combined covid and flu shot. Joining us now is emily field, barclays had a pharmaceutical research. An overweight waiting on sanofi. Does rating on sanofi an overweight rating on sanofi. We were talking about how modernity needs to diversify away from covid19. Uptake really falling off. Then they have this deal today. Tell me about what you make of the timing. Emily thank you for having me. Thats been the investors number one question. Why ny now . Just yesterday we saw that astrazeneca is going to basically stop marketing their own covid19 vaccine. The timing was the biggest question. The message from sanofi is it is about future combination with their flu vaccine. They are the Market Leader in highdose flu vaccine. Its a 3 billion euro business for the manually. Katie tacos through the logic. Do you think this deal makes sense . Emily great question. Sanofis strategy we had to that we spoke to the head of the vaccines build this build as big a moat as possible around that leadership and flu vaccine. As we see with mrna, they are trying to encroach outside of covid. We might see an update on rsp later this month rsv later this month. They are all going after flu. Sanofi has a program as well. Sanofi is trying to have as many options available to partner with their incumbent business to maintain the leadership. Katie what do you think they see in novavax necessarily . Its a relatively small company, u. S. Based. What do you make of this particular partner . Emily i think why the logic for this deal made sense for sanofi is that there are their flu vaccines use more traditional modality. I think as it is an unanswered question, how big are mrna vaccines going to be outside of the pandemic environment, all signs point to a big decline for covid as we see it today. I think sanofi wanted a traditional mechanism Covid Vaccine to partner with their traditional flu vaccine to have that as a defense against potential mrna competition. Katie im curious your thoughts on the price tag. 1. 2 billion is not nothing but it is not enormous. Usually an m a you see the acquires shares fall. It seems like traders and not too fussed about this. Emily in the context of sanofi, 500 million cash upfront, the extra 700 million tied to milestones, its a relatively small upfront transaction. We took a lot more notice from the financial perspective and there is a b at the beginning of the transaction figure. For sanofi investors, there are questions on timing but is it all that material . Really. Not really. It is a bigger deal to novavax investors. Katie sanofi is kind of a afterthought. Novavax was up to hundred percent premarket. They are off by about 100 . It feels a little funky. Emily that was one of the first things we looked at, the Short Interest in novavax. Over 30 of shares were sold short. The Short Covering is probably driving a lot of price action today. From a sanofi perspective not that much of a needle mover. Theres a lot more at sanofi then consumers are cognizant of. Katie talk about the Competitive Landscape of the european market. 1. 2 billion, not nothing but not huge. Where did they rest currently right now . Emily i think for sanofi what investors are focused on is the immunology business. The biggest selling drug is a blockbuster. We are awaiting approval this summer for a potential approval in copd, another respiratory disease. Its approved her asthma. That will be there growth driver through the end of the decade. What will be the primary thing investors are looking for in the years ahead his hat with their pipeline going to mature . They had a big r d event last summer. A lot of programs moving into phase three. We will get those in the coming quarters and years. Katie emily, appreciate you hopping on and appreciate your insight on this breaking news. That is emily field of barclays. We want to bring you breaking news. Sinker shares zeekr shares ipo price had been 21. A bit of a pop. Is a chinese ev Company Going public today. Zeekr shares indicated at 23 to 25. The ipo price had been 21. Definitely a premium. We will bring you more details as we have them. We will look at the Companies Making the most social bus today and our social climbers segment up 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. Katie time for social climbers. The stocks making waves on social media this morning. Apple reboot. Its pulling an ad for the new ipad pro which drew heat on social media the ad shows a giant machine slowly crushing a pallet of created tools like instruments, paints, books before he reveals the new ipad. Critics slammed the ad, saying it promotes the destruction of the human experience. Apple has apologized, saying it missed the mark and the ad will no longer appear on tv. I did not think it was that bad but apple did not quite ask me. Openai set to reveal its rival to google on monday. Sources have told bloomberg the company has been working on a Search Engine feature for chatgpt which can search the web and cite sources and results. Googles Parent Company alphabet dipping slightly on the news. We have shares of Planet Fitness flexing after the gym chain announced it will raise prices for the first time in 26 years. The company had a lackluster report on thursday, lowering revenue and profit projections. Its plans to increase to 15 a month investors stopped investors from breaking a sweat. You can follow it under bloomberg terminal. A quick check of the markets. We have a green day on her hands. The s p 500 up slightly,. 2 . You take a look at the stocks index, still up by more than 1 . Some gains have come in about an hour or so into trading. Coming up, greg ebel, enbridge ceo and president. This is bloomberg. Katie enbridge earnings is a b. Abigail stock responding well. Beat, pretty solid. Distributable cash flow, also beat. They are on track for pershare guidance. Pipeline revenue, tremendous growth. Massive growth here after many quarters in the 3 million range. Its basically a double. Yeartodate, stock up 5 in line with players enough in line with players in this space. Katie greg ebel, president and ceo. Revenue. That chart was dramatic. What drove that . Greg utilization of pipelines. Revenue is unique. It has changes in the price of commodities. The focus is utilization across the system, gas pipelines, power, etc. Speaks to how Important Energy is, all forms of it. We will see a big move forward on the use of power, liquids, gas and renewables. You are starting to see it come through the macro. Katie feels like there is more volatility ahead. Datacenter demand. What are you seeing . What are your views on Natural Gas Storage . Greg from the gulf coast to the northeast or the west coast, canada, etc. , we are seeing peak days on all those pipes. West coast pipes, 99100 last days in the last year curved. Theres going to be a need for more pipes and capabilities. The price of producing gas in the field, maybe two dollars, but in new york city, people will pay double digit prices. The infrastructure needed to get to new york city or boston. It says there is a bigger demand for pipelines. Volatility, storage has driven that. Its like a thermos bottle full of gas and when you need it, you call upon it. Whether volatility between regions, weve seen an increase in storage prices and the length of time they want to buy it. It speaks to the critical need for Energy Infrastructure and gas in particular. There isnt a Bright Future without a gas backbone. Katie the permian. Your expectations, what you see there . Greg we have a great position on the liquid side. The major pipelines boil down to corpus christi. The largest exporter of crude out of the u. S. Or east to the gulf coast refineries around houston. That continues to grow. We announced building more storage and expanding pipelines in the permian. We announced a new venture, more access to the permian with new pipelines. We have a new opening Season Marketing effort to build another pipe in the permian. The u. S. Has gone from nowhere on the front next, 10 years ago, to be the largest exporter of natural gas. Katie changing of the guard. Not sure how many expected that. The trans mountain pipeline. Tmx. May 1. The feeling is it could steal volumes currently shipped on your pipelines. Re modeling . Greg that was expected service before 2020. That was a concern. Thats an old thought that we may lose volumes. We continue to see record volumes on the mainline which competes against tmx. We have a better toll put in place for customers last year. We are competitive. Since that pipe was supposed to come, four years later, the canadian basin continues to grow. Our customers are looking for more exports. We expect to ship 3 Million Barrels a day on our mainline system, which is a dramatic increase from five years ago. Any impacts we havent seen yet. Weve modeled those. Thats part of the reason for a strong first quarter. Demand from customers since tmx has come on. Theres not enough space on our pipeline for all our customers. Katie data centers, a topic on the earnings call. Enbridge is wellpositioned you said but that demand takes time to ramp up. Where do you see that relationship . Greg a lot of thoughts on what it will do to power demand. Not exactly sure. Any increase will be calling on gas. Our Natural Gas Pipelines are located 50 miles or less from 47 of all the gasfired generation in north america. If power demand is required, theyre are going to need gas. They also need storage. If you think about google, i. T. Folks, they love at t, for example, having renewable elements. Solar and wind, we see opportunities for longterm contracts, 15, 20 years for those players. We will see. No doubt it will be a bigger need for power. That swing, Reliable Energy has to come from gas. Katie we will stay in touch on that. Appreciate your time this friday morning. Zeek are ipo, more numbers, indicated 24 to 26, the range continuing to move higher. We are waiting for shares to trade. The biggest u. S. Ipo by a chinese based company in three years. A lot of lines to keep track of. Abigail the week, risk on. S p up for the third week in a row. Bloomberg dollar index up. Oil and risk asset higher. 10 year yield, a little bid. It is small enough, overall investors are bullish. Dow, we dont usually talk about. 8 day chart. Its been up eight days in a row. Interesting to see this strength for the bluechip index. S p, earnings season is over. Stocks had been near record highs, then down, now this winning streak. Overall, this is what the s p has done. Relative to past seasons, really doing a whole lot of nothing. Katie thank you. Coming up, Jenny Johnston of Franklin Templeton. Why companies are choosing to stay private for longer. Abigail coming up, george arison. This is bloomberg. Katie david westin spoke with Jenny Johnson of Franklin Templeton in los angeles. They talked about growth and opportunities. Jenny weve been global, 160 countries. We used to be traditional management. We are a top 10 alternatives. Secondary private equity, real estate, private credit, venture. David strong background in mutual funds. Jenny i still hold a significant portion. Its probably 900 billion. David alternatives. Theres talk about private credit. Real estate. Jenny private credit, 78 million. People worry about the growth but what they miss is Capital Requirements have changed. Banks are not lending like they used to. That has shifted to the private credit market. Today if you can withstand the illiquidity highyield, you can get 7 . 12 is a big difference. You are not going to get your money back for five years. David you have capital. What is your maternity match like . Jenny when you raise a fund, you tell your holders, this is the length. You try to match it. It is setting expectations. In some ways, they can be harder for a bank. 40 of their deposits out flowed in one hour. In many ways, private credit is a better match. They set expectations at the time of investment. David why is private credit growing the way it is . You could tie assets up but those days are gone. Jenny the growth in private equity. Thats another thing. Companies are waiting longer to go public. I dont think its necessarily a good thing. Oftentimes, there needs to be debt instruments as companies go private, so there is lending in the private equity acquisition. Then, the Capital Requirements for banks have been such it is hard for banks to lend in the same way they use to. They are reserving their capital for lending to their best customers. The rest are filled in by the private credit market. You see it post Silicon Valley bank. Real estate has dried up. Private credit is filling into do the real estate lending. David it takes longer now to go public. It is harder for people to get the money out. How is that playing out . Jenny companies are choosing to stay private for longer because of the nature of being public. Pressure on quarterly earnings. Shortterm mentality around quarterly earnings. In the past, you went public because you needed to monetize original investors. Now theres a privately accurate private equity firm that can take them out. Companies can stay private longer. Now you have great technological innovation. The work Franklin Templeton is doing in ai isnt going to pay off for a couple years. If you are public, it can be hard to make investments. We still have founders that own a big chunk of stock. You are going to investing these things that arent going to pay off for a couple years. That can be hard. Thats a challenge. Theres a variety of reasons, the luxury of staying private, ceos are choosing to stay private longer. The average now is 915 years. Two times the growth appreciation that used to happen post ipo is now happening in the private markets. David innovation. Tokenization. You were early. How are you using it . Jenny im a huge fan of blockchain. First sec approved money market fund, the 40 fund. The sec have us run the Shareholder Servicing system, we use to run our own, then the one we built on blockchain. These are the records we parallel processed for eight months. We were astonished by how much less costly it was to run it on blockchain. Its very efficient. We think it will open up new investment opportunities. Eventually etfs and mutual funds will all be on blockchain. Katie president and ceo of Franklin TempletonJenny Johnson and david westin. Tonight, mark rowan from apollo. Thats at 6 p. M. New york time. This is bloomberg. The all new godaddy airo helps you get your Business Online in minutes with the power of ai. With a perfect name, a great logo, and a beautiful website. Just start with a domain, a few clicks, and youre in business. Make now the future at godaddy. Com airo katie uranium etfs climb this year, 5 billion in assets compared to 150 million three years ago. Whats going on with uranium . Eric we call it green investing for realists. Net zero, electricity. People dont want to stop moving around. No one wants to give up anything. Nuclear will have to be part of the solution. There is stigma attached. People are afraid of it. We feel the tide is turning a little. A new plant had been decommissioned in michigan. Theyve been doing things in europe, china. There are good catalysts in sentiment and dollars. Uranium etfs are the benefactor. When they came out, i was shocked. They launched out of a 10 year bear market. They had room to run. There assets went up 30 fold. We predict 10 billion by the end of next year, which would make them the biggest Clean Energy Etfs in the world. Katie perhaps chasing tailwinds. I dont often think about uranium etfs. Whats the Competitive Landscape . Who is the big dog . Eric all these etfs are hot sauce. Small allocations on a more vanilla core. Ura has more beta in it. Urnm is more of a pure play. Urnj, is the junior minors, the jump he asked. The jumpiest. The more volatility, the more potential upside but also downside. Standard deviation is an underrated field. How much can you handle . Katie [laughter] all this growth and the good performance numbers. We have to put up in and it. In it. Tune into me and eric every monday on etf iq. Its a great show if i say so myself. S p hanging onto gains. Just dropped into unchanged territory. Still higher on the week. Friday momentum starting to fade. Nasdaq 100, same story. Another up week expected for the benchmark. Semiconductor index holding. 1 higher one hour ago. The grinder ceo joins bloomberg technology. That does it for bloomberg markets. Have a great friday. This is bloomberg. Announcer this is bloomberg technology. Caroline ed ludlow is off. Sweeping tariffs on china targeting evs, batteries and more