>> i am john hyland with the first word news. visibility to iran's nuclear program did not last after -- international atomic energy data showed the number of examinations fell 10% in 2022 after iran ended monitoring rage and specified under the agreement with all times. in a document, the head of the iea says -- were seriously affected by iran's edition. granted two weeks bail over a corruption case by the high court. the latest twist in a high-stakes political drama fueled unrest across the country. consular seeking bail on a number of other charges. supreme court ordered the release on thursday describing his arrest as a legal, a decision slammed by the government. new york city may begin charging

motorists charging into major parts of manhattan into april 2024. the plan, the first of its kind in the u.s., is expected to get tunnel approval in the next few month. it would charge drivers driving south of 60th street as much as $23. mta says new tools are expected to generate $1 billion in revenue a year. local news 24 hours a day on air and bloomberg originals. powered by more than 2,700 journalists and analysts in over 120 countries. i am john hyland and this is bloomberg. ♪ >> welcome to bloomberg markets. >> let's get a check on what is going on in the markets. not a lot of gainers today. look at the s&p 500 down about .4%. if you break that group down

into the 11 industries on the first level, you will see only utilities are gaining, as well as some energy companies. solar is notably the biggest gainer, adding most points to the s&p 500 and up about 23%. the 10 year yield is gaining to 3.44, up six basis points as investors sell that debt. investors are selling nymex crude, down $.59 to $70.28 a barrel. bloomberg dollar index gaining right now at 1230. jon: you mentioned solar. big pop there. a couple of factors with first solar, some deal activity but clean energy tax credit boost has been generally helping solar stocks today. speaking of cleaner energy, tracking tesla shares, a choppy day of action for tesla as

investors are keeping tabs on what was happening with twitter and elon musk making it official with linda yaccarino set to take over the ceo job. we will watch what is happening with tesla shares. we are watching what is happening within the financials sector. schwab, getting some attention, talking about some asset boosts it saw last month. that is supporting the stock, up close to percent right now. some regional bank fitters are still here, evidence through pac west currently down close to 2%. matt: pac west has been beaten down a lot more than that over the past couple of months. traders keeping a close eye on the debt ceiling standoff in bc -- d.c. in our exclusive interview with treasury secretary yellen this morning, she said there is only one ideal solution. [video clip] >> if congress does not raise the debt ceiling, we face economic and financial catastrophe one way or the other. that is why our focus is on

making sure the congress does raise the debt ceiling. i feel that is something we are going to succeed in doing and we are working hard to make sure that gets done. >> for more insight on market reaction to the debt ceiling drama, let's bring in karen murphy, cio of castro investment management, the investment arm of kestrel holdings. great to have you with us. we are seeing, it feels like some of the debt ceiling jitters in the market today -- generally, are you surprised we have not seen more of a market reaction so far? >> it is interesting. if you think back, we hit the debt ceiling in january. that is when yellen first raised the white flag. the market really ignored it. stocks continue to rally through that time period. this is not unusual. we have seen this with other debt ceiling showdowns, other market events we know are coming

and the market does not really start to price it in until it has to. we are at a point now where the x state is coming rapidly and showing up more in headlines. the market is going to have to focus more on it. i think that is a large reason why we are in a very tight trading range here. with valuations above average, with gains we have seen so far this year, it does not elect the full risk of this potential showdown have been priced into the markets. matt: will we see this play out like previous debt ceiling debates have, where we get a big dip ahead of the 11th hour agreement and then we recover? doesn't it really matter in the longer-term if -- does it really matter in the longer-term if congress works it out, even with a slight, technical default next couple of months? kara: you are right in where you are headed. this idea over the medium or long-term, what we have seen every time this has happened, even when there is a market

blip, it recovers within a couple of months. we are starting to see some dislocation right around next eight. we are seeing treasury build, yields rise from that time period. you're starting to see markets be more cautious. for anyone with a six-month or torn -- six month or more time horizon, this is going to be a blip. matt: -- giving investors an opportunity to buy in, right? kara: that is the way to think about this. as we get closer to that x date, we might find opportunities on the market, whether yields suddenly start spiking in certain treasuries or the markets selloff. we would view that as an opportunity. jon: the health of the consumer, arguably holding up so far, has been one of the factors perhaps keeping some investors in equities. we have seen the market respond to that latest university of michigan data today. inflation still on the brain for

so many. how do you think the health of the consumer, will play out as a role through the year? kara: i think the health of the consumer has been extraordinarily important so far this year. if you look at different parts of the economy, areas like small businesses, manufacturing, we have a lot of indications that those areas of the market or the economy are slowing significantly. capex spending is coming down. small businesses are having a hard time getting credit. ism manufacturing is down. the consumer has held in through all of that. a lot of that is because of a very, very strong labor market. also, wage increases have been solid as an lesion has come down. -- inflation has come down. university of michigan confidence numbers show confidence is declining. what matters for the economy is how much consumers are spending. that is where the spending numbers continue to look quite robust. it will be important as the labor market continues to loosen a bit, which is what we would expect.

are consumers going to continue spending or start to ratchet back? matt: eu mitch numbers are interesting on the inflation level, right? one year out, consumers expecting 4.5% in that survey. five to 10 years outcome expecting 3.2% in that survey. do you worry the fed is going to have to come back in and raise rates again at some point? kara: i think consumer expectations for inflation is one small part of the inflation picture for the fed. we had earlier this week, cpi and ppi numbers, which were pretty good. the fed cannot declare victory yet, that inflation is where they want it to be. it is trending in the right direction. we are seeing it confirmed in multiple different indexes. i think that is going to end up going more port than the fed then inflation expectations. those will generally follow those broader indicators. jon: let's talk about what this means for investors. i think given the fact the s&p,

i know it is only a handful of stocks, but it has been higher this year. people talk about valuations. you are looking around the world, looking at markets like europe, what do you see when it comes to the investing landscape right now? kara: a couple of months ago in the wake of the start of the banking crisis, this is a couple of months into the big rally in the s&p 500 grade you had a number of banks failing, credit adding tighter. on the back of that, week could have pulled in our rains and took down a little risk within the equity market and started to go overweight extend come. that is the broader backdrop in terms of where we see ourselves. we think we are in an area where economic growth is going to be decelerating. we are looking for opportunities to find undervalued stories. one of those as you suggested is outside of the u.s. you look at non-us developed markets, very attractive

valuations, more conservative earnings expectations, higher dividend yields. we have had the ms iea outperforming the s&p 500 for six months running, the longest stretch in quite a time. it tells us there are some kind of fundamental things starting to shift in the u.s. versus non-us dynamic. we are looking for opportunities there. matt: is a difficult for investors to face for the first time in so long, a dilemma between a risk-free return of 5% or 6% compared to going for that elusive 10% in the markets that may turn into a loss? kara: absolutely, but this is not a bad thing. investors have to choose between a 5%-ish pre-rate versus what you can get in the stock market. those are not terrible alternatives. one thing i would caution on the cash side is that, that 5% is probably higher than what we will see longer-term. while we can get attractive returns on cash for now, that is

probably not going to be all the time. most of our investors are long-term investors, so you're going to get more attractive, long-term returns on the stock side. it is not a terrible thing. matt: it is pretty good. a pretty good place to be, right, jon? jon: there you go. our thanks, kara. kara murphy joining us of kestra investment management, where she is cio. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh

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related etf's saying a resurgence -- seeing a resurgence after last year's freefall. katie greifeld has a report on why it aims not to matter that much to investors. >> flows are supposed to follow performance. but, the crypto space is unique. that is overseen in this episode. if you look at the best-performing, non-leveraged etf's of this year, they are all reptile related in some way. leading the way is the valkyrie bitcoin miners etf, w gmi. we are going to make it soared 119% year to date. it has taken and only $5.7 million. just million. these spot etf's have taken in $12 million overall. over $118 billion have poured into etf's overall. not a lot of love, even though you are seeing this performance. the answer i have gotten so far is, people are so badly burned last year they do not want to touch it. jon: it is helpful context.

you are right. we have seen this huge move in the asset class, but investors perhaps a bit jittery. helpful context from katie greifeld on what is happening in the crypto sector. in the technology sector, lyft expanding pre-bookings. we get perspective from the companies ceo on the decision to end pooled rides. this is next on bloomberg. ♪ good night! hey corporate types.

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matt: this is bloomberg markets. let's get to our stock of the hour.

it is the ridesharing app lyft adding a new tool for riders, pre-booking a car from the airport to wherever they are going. lyft is officially discontinuing shared rides, and option uber is doubling down on. we want to bring in ceo david risher, new ceo as well as bloomberg technology cohost caroline hyde. thank you for joining us. let me start by asking about the feature change. a little shakeup or the lyft app. do you expect this to help you gain market share from uber and can you quantify what kind of gains you are expecting? david: good question. we just launched a new set of features yesterday that are all about making travelers lives easier. it is summer travel season. everyone is out and about. some call it revenge travel. now, it is super revenge. i do not know. when you go to the airport, here is what happens. first of all, what time do i leave, how bad is traffic going

to get? my wife and me have this argument over and over. i am a late lever, she is an early lever. matt: ditto. caroline: i am always late. david: we are letting you outsource the stress to lyft. it will give you a prompt saying, now is the time to order and we will take you right to the airport. more than that, we will take you to terminal two because we know your united flight leaves from terminal two. when you land on the other side, your plane touches down. what is happening in your mind? you are thinking, you've got luggage, i want to order a car, i do not know how long it is going to take me to get there. all you want to do is get to your hotel. you open your app, push a button that says either you have luggage or i do not, and we figured out for you. by the time you get to the curb, your car is waiting for you. >> uber has had something like this. how was this the first of its kind? david: what the other guys did,

they put airport maps in. what i think is interesting, that is a solution, but not the solution to the problem. sure, you want to be able to know how to walk through the airport. what we did is, we've got an airport map to. but, the car is waiting on the others. that is a big difference. >> cargo, but then you analyze what other cities -- what is your regional priority right now? david: eventually, we want to be nationwide. you have just listed areas where we focus for our travel app. super excited, jfk, that will be by memorial day. the idea is to get to some of the biggest travel departures and destinations by the end of the month. matt: you are leaning out in terms of services if you look at the drop of ride pools, right. you are focused, concentrated on these cities, these regions. can you gain market share in

those markets and then sustain your business that way, rather than try to be everywhere all the time for everyone? david: everything, everywhere all at once? it is an almost interesting case study. both companies looked at the same issue. most people -- like a deal. we all like a deal. we've got an approach, they've got an approach. their approach is called shared rides, something we innovated on. we came out with that first before the pandemic. turns out, riders do not like it because not just there is a stranger in the car, but when they are headed to a destination, the feeling of taking a left and going back to pick someone else up and taking a right to drop that other person off is almost emotionally anxiety producing. why am i going the wrong direction? i am saving a couple of bucks, but it does not feel good. drivers do not like it either.

we wait and save. wait and save, different. you save your five dollars, but an hour deal, you know how much you are going to save upfront front and you've got five to 10 minutes to grab a coffee, whatever. once you get in the ride, you go where you want. i think ours is more customer friendly and the better option. >> let's talk about your key focus, your investor base. they feel like it has been a wrong turn recently to be clumsy about it. he went from a $22 billion market cap to a $3 billion. how do you change that direction of travel? many say at that price point, lyft is up for sale. david: we are not on the block. >> you are open to offers for sale. david: if a big public company calls up. the focus is creating a great business with what customers want and what drivers want and building a hugely profitable -- optimal business. >> has any public company called

to buy you? david: the short answer is, it is not our focus. here is the thing, you've got to do really well at the basics. for a little while in the fog of war and coming out of covid and so forth, the company maybe was not quite as focused on its riders and drivers. now, we are. our pricing is now competitive in a new way. the driver pick up is competitive. the driver take rate, which is basically how much divers pick up is competitive. once you get there, that is when your market share starts to move. we have gone from high 20's to low 30's 30's up to 50% and places like portland and phoenix. just by doing the basics. what do you do next? you tell people about it. are either of you tiktok users? >> i am. david: [laughter] on tiktok, go and check out delaney says hello is the influencer. check out her should have taken

a lyft ad. it has 5 million views and is about the fact if you get into an uber, it smelled like blue cheese because maybe they just dropped off a salad before you. lyft, we do not do that. we are trying to get that out -- get out there to remind people that we are a great option. i want people to have both uber and lyft on their phone. >> you said before that your current levels of growth and profit are an acceptable. what is on acceptable for you -- unacceptable for you? david: this should be a strong, to player market where both uber and lyft do fine. i think it is a mistake or just maybe a failure of our own collective imagination to think the rideshare market is just so big. honestly, with so many people coming back to work, there should be so many opportunities

for bosses to say, i will buy you a lyft to get you into work on monday, wednesdays and fridays. >> that would be nice. matt: wouldn't that be nice? >> i am there. it is one of the perks, i want a bike everyday. matt: in new york city, the bike share is amazing. david: the bikes are free if you are a lyft pink member. matt: david, thank you so much. appreciate the chat here. caroline, been great having you on set with us. the ceo of lyft. let's get back to jon. we are looking at markets that are soft. i think you made a great point at the top of the show. i think this could be driven by the university of michigan results. jon: well, if you've got a growth concern and and inflation concern and an overall stagflation concern, that is enough to consider along with the debt ceiling story as we take a look at that .7% decline

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>> there is no satisfactory solution for the united states. a solution that will be good for the economy and financial markets other than congress acting to raise the debt ceiling. matt: the only good outcome of -- a new call to raise the debt limit from the nation's manager. romaine: kicking you off to the close on this friday, u.s. treasury secretary janet yellen speaking from the g7 in japan about the debt ceiling impasse at home in washington. her comments and the lack