sonali: welcome to "bloomberg markets." let's get a check on these markets. the s&p 500 has some green on the screen again today. nasdaq 100, up .3%. remember, it's a big day in the bond market, relatively low volatility. there is still some in the bond market as well. two-year yield, flat, but we have more economic data coming this week and earlier today even said you could expect fed rates

to stay on hold for longer. the 10 year, down five points, well under the four hundred 50 level. remember, you have a 10 year auction tomorrow as well testing treasury issuance at the longer end of the curve. near crude on the decline, down to 78 on the day. 4/10 of 1% higher, still not much movement there. gold spot a breather, 3/10 of 1% lower. midday movers on the equity side , big story is apple has new ipads at their let loose event, opportunity to could clean up the confusing lineup made of five different models. apple has spent 14 years trying to make the ipad into a computer replacement. peloton, soaring after cnbc reported that a number of private equity firms are considering a buyout of the fitness company valued at $1.3

billion as of yesterday's clothes. shares are surging on the day. shares hit an all-time low one week ago after the ceo announced plans to step down as they embarked on a major restructuring. we will discuss that story a little bit more now with mark, who is going to tell us about peloton and apple as well. peloton, it's interesting, you see a rise in the socket, down 30% on the year. should this stock just not be in public markets anymore? >> peloton is a laughingstock, it shouldn't be in public markets personally, and it's not a good buy for a private equity firm either. barry mccarthy takes over the company two years ago and he essentially runs it into the ground. fires thousands of people. i think we are near almost 10,000 layoffs in total. goes all in on software and

content, remakes his executive team, tries to relaunch the app to get interest, that failed. the marketing chief comes in in less than a year. certainly, nothing good happening there. two years later, restructuring again. the ceo stepping down. no successor in place, no one who can capably take over for him. they have two board members coming in their getting paid $150,000 a month each, like something blackberry did 15 years ago. the best thing that peloton can do at this point is closedown its hardware, go all in on content, try to sell it to amazon or netflix to make it a part of their subscriptions. otherwise, i don't see it existing much longer. they have 8 million -- $800 million in cash left, bert -- burning millions for quarter. this company won't last much longer until it gets sold. sonali: future out the private

equity playbook perfectly. sell the hardware, bring in the money. if you see a private equity firm or a couple come in, is there value to be recouped here? >> i don't think so. the hardware business is a major money loser. it's always been a major money loser. previous management set the company so her back by believing that the covid pandemic would be the new normal forever, failing to see that normalcy would again prevail. they believed everyone was going to buy these bikes. they simply built too many, but too many plans in place to build more, setting the company back, stripping it apart and running it into the ground like mccarthy did, even that could save the company and he's out two years later. i don't see a financial win for anyone unless the business is shutdown enclosed in they write it off and take a huge loss there to sell the content is

this to netflix or amazon, but i don't see the private equity play working out. i don't see saying on the public markets lasting much longer either. sonali: talking about apple here, letting loose, how do you think the new ipad lineup will shake among investors? >> the new ipad pro is oppressive, having gone all in on ai, ai device with the m4 chip, 50% faster than the pro from 2022, but the big change their is a faster engine for artificial intelligence tasks. the new screen is quite impressive. this will be the first oled's tablet to ship in high capacity and volume. the new ipad pro, though quite more expensive than the prior, will be a winner. the ipad air, $800 for 13 inches, meaning that the 13 inch

ipad screen size is the cheapest it has been since 2015 when the original pro was announced. a considerable achievement as well. the 13 inch ipad air will be popular as well. the nuance there is that the hardware is so advanced, the software has never been able to keep up with ipad half -- hardware. will it catch up this year? i think we will start inching in that direction, which will be a pleasant development for ipad lovers. sonali: does it create a problem for newer ipads to compete with the mac books? >> no, i think it's a good thing. neither category is a winner, both have lagging sales according to some metrics and you want to see how you can make them the best possible devices and we will see which one wins out. we would rather have one of them then neither. sonali: thank you so much, mark.

breaking news over the past hour, as expected, tiktok filing a lawsuit against the u.s. government for forcing it to divest from bytedance. the law forcing -- saying the law would force them to shut down by january or be sold. joining us now is my shepherd, who knows all of the ins and outs of not just tiktok, but the broiling in congress over this. how is the lawsuit going to be met? mike: well, we can expect the justice department to mount a vigorous defense of the law. the biden administration got behind in the closing days as it was added to a much larger foreign aid package. president joe biden before that happened at indicated that he would sign the law without offering too many other specifics. remember, a number of their key officials, including the head of

the,, director of national intelligence, and other members of the cabinet i've spoken to have expressed concern that tiktok poses a national security risk. two reasons, chinese ownership could allow the chinese government to gain access to the data of u.s. users. they also say that the chinese government could use the platform as a vehicle for propaganda. especially heading into an election year, they see that as a risk. sonali: when you think about what eric schmidt told bloomberg tv, weighing a purchase of tiktok from chinese owners, he said he would rather see the app regulated and not and. how welcome to that idea is the u.s. government? mike: the u.s. government right now based on the law and where the administration is standing says that is not possible. they need to see new ownership and a complete severing of ties with china for the app to

continue in its current form. however, today in this lawsuit we see, and in many ways this is the moment we have been waiting for. since joe biden signed the bill into law last month, tiktok and its owners, bytedance, have been preparing this legal challenge. they are doing so on first amendment grounds, laying the groundwork for serious constitutional challenges to the law, saying that it will infringe the rights of 170 million tiktok users and that it is without precedent, that congress hasn't made a law like this without much of an argument underpinning it. sonali: mike, we thank you so much for bringing us the latest on tiktok's is the united states. up next, a rough day for disney as streaming growth and profit outlooks missed estimates. that is our stock of the hour and we will bring you all the

details, next. this is bloomberg. ♪

>> we took prices up a little bit in the beginning of this year and didn't really see much of an impact. as to what the future brings, we are very judicious with the way that we price, providing access to as many guests as we possibly can, but we believe the great experiences that we provide, people are willing to pay for them. sonali: the disney cfo hugh johnson on streaming price hikes and the impact it is having on

the business, giving us the stock of the hour. shares under pressure after this wanting disney plus subscriber growth and a profit outlook for the year that came up short. let's discuss this with chris in los angeles, who does -- covers the company closely for us. wall street is hanging on that bad news. how does this really play into investor excitement for the future of disney? >> wall street, so negative, it's hard to read. when we first saw these numbers, we thought they were pretty strong. they were raising their guidance for the full year of earnings-per-share as well. also, dramatic improvement in profitability in the streaming business from like $500 million loss to just 18 million or so. so, it's a big improvement in streaming, but the company in the current quarter said that they were not going to have as many disney plus substring --

subscription service sign-ups. the theme park business, such a strong growth engine, flat terms of profits. and then probably even more ominously on the call, the cfo said that they were seeing signs of weakness in the parks business overall in terms of ramping down from that big post-covid bump that they all saw. so, those were the big concerns. sonali: is nelson peltz looking at this saying i told you so, or is he saying -- things need to turn around faster, i still hold stock. chris: there's definitely evidence that the improvements in costs and all that from bob iger are working, but when you see the stock market reaction, i'm sure that nelson is going to say somebody should have been in there to, to warn everybody that this slowdown was coming. again, i'm sure he's concerned

and it came up on the call, ceo succession. i think the -- sonali: the outlook is the most concerning here, how do executives counter that? >> they will keep trying to execute. they did say that fourth quarter for them would be better in terms of parts. in streaming they have been saying it for years now, the streaming business overall is going to be profitable in the fourth quarter, which will be huge. most of those competitors are not there yet outside netflix. so, that will be a significant turning point. at the same time, you are seeing a real weakness in the traditional tv business. the last quarter in particular, some of these new deals like with charter, they are giving disney plus to cable subscribers, canceling cable channels they used to get. it's a mixed bag for disney. sonali: tough love, here.

what does it mean for bob iger at the end of the day? chris: you could look at the report in see signs of a turnaround, maybe he will make it work and exit on a high note in a couple of years, but still to be determined. sonali: chris, thank you so much for covering. this is the worst day for disney stock since november of 2022. a tough turnaround. chris, thank you. coming up next, a newly formed group looking to influence the ever-changing city of miami. we go to wall street south with andre dua up next. this is bloomberg. ♪

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sonali: this is "bloomberg

markets," i'm sonali basak. a global ranking of the wealthiest cities puts new york at the top of the risk -- the list, resident health in excess of $3 trillion. new york has 350,000 millionaires, the most of any city, up 48% from a decade ago. meaning that one in every 24 residents has a seven-figure net worth. when you look at wall street south, miami ranks 33rd, up from 78% over the past 10 years. speaking of miami, we will be talking about wall street south today because we are looking today at the newly formed partnership of miami that aims to influence the dramatically changing city. joining us as some of the founding members, andre dua, managing partner for mckinsey and miami. partnership for miami sounds like partnership for new york

city, a very influential organization here in new york. what is this partnership aiming to do and is it exactly alike from what you are seeing in new york? andre: it's great to talk to you. let me tell you a little bit about the partnership. we drew inspiration from the models in other cities including new york, d.c., and others, but really we were inspired to bring a group of business leaders to act in the civic interest to create a miami that works for everyone. one animating thought is how do we take the remarkable momentum that we have seen and turn it into something durable, long-lasting, and continues to propel miami into one of the best cities in the world. sonali: you have some interesting leaders in this group, including ken griffin of citadel, dan son dime, orlando bravo. how did you bring people into the group and again, what do they want to accomplish?

andre: finance has been moving down to miami as an industry, but there is a real diversity in the economy and our goal was to bring together let's call it the new miami, people like ken, orlando, dan, putting them together with the existing business leaders who have been responsible for the growth of miami and its prosperity in the last 20 years. the real thought is -- how do we bring the power of that group together to add to the civic infrastructure of miami to make sure that we really sees the opportunity of a diversifying more vibrant economy opportunity within attractive business climate and take it to the next level. that is really what we were thinking. it's important to note that what we are striving to do is build a miami that works for everyone. not just the newcomer people who have moved here, but the people have been here for a long time. what does that mean? it means affordable housing and

a transit infrastructure system that can deal with our growth and an educational system that provides for terrific opportunities for our children and creates a pipeline of university graduates to power our future economy. sonali: you have front run me on the issues that miami is having. i should also say that you were one of the people that moved, you moved out of new york in 2019 and there has been that interesting migration. i have got to say, some of the people i know that have moved have spent an ample amount of time backup in new york city. how sustainable is the move when you think about people coming newly to miami? who are those people? andre: i think they come from across a range of different sectors. they come in the finance, vc, and tech community. they come to expand our already strong sectors in health care, real estate, tourism, hospitality, and you know that

miami has emerged as a global center of sports and culture. it's a story of not just one sector, but many sectors. what we are all realizing is that as much as our trajectory over the last five to 10 years has been unprecedented in america, our success is not guaranteed and are future story is not yet written. how do we come together and work together with elected officials, other civic leaders, and create something we can be proud of to provide the maximum opportunity for the most people in our great city. sonali: how much does acosta join? andre: we've all contributed and made a commitment for the next three years and the goal is to be able to fund an executive director, a small staff, and a series of activities putting us at the center of the conversation. sonali: so what, exactly, is the conversation? if the idea is to have a small staff and have influence over the future of education or transit in miami, how do you

make those moves, realistically? is it a lot of pressure on the local government or is the idea to bring in more people and more donors to the city? andre: that is an excellent question. we've started by asking what it takes to be a great city. we have laid out what we see as the 10 attributes of a great global city. then we said look, let's take an honest accounting of where we are against the attributes. where are we doing well? we have the lowest unemployment rate of any city in america, top school districts. we have lay that out. we have laid out the end -- areas we are challenged, like affordable housing, transit, and some aspects of education. now we are saying look, as a community let's understand the starting point and pick a few issues that we can work on together and i think you are right, it will take a collaboration between business leaders and elected officials,

with whom we have entrusted taxpayer dollars, to figure out the best and most strategic investments to position us well between now and the next couple of decades. sonali: quickly, who are you trying to attract to miami? the younger financial folks or the billionaires who have already amassed their wealth? andre: great question. i think we are seeking a dynamic diversified economy in which all residents, including those who have been here for a long time, and newcomers, can enjoy a high quality of life. a city that is safe, a city with great education, a city where you can move around and where you can afford to live with your family. i don't think that there is a particular plan to say that this is about attracting people. it's about creating a city for the long-term that can be successful and ascends into the ranks of the great global cities. sonali: andre, we've got to leave it there. that does it for "bloomberg

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