, ed ludlow will be back with details as we go over that in the next couple weeks. one more check on the markets, the selloff here is getting stronger and stronger, 3.3% decline even on the 10 year yield, muted, but you are still seeing the risk off mood. inflation is this theme of the day, 10 year yields up only four basis points so the context of the volatility we have seen 1720 point basis hikes moves on the day. a lot is dislocated, the correlation just not working. we will keep you up-to-date on all this, i'm critic up to, this is bloomberg. ♪ mark: with news around the world, i'm mark crumpton. several european countries fast-track -- support fast tracking ukraine to become part of the block, leaders from italy, germany, romania and france visited kyiv today. the leaders of france, germany, italy and lavinia received a tour. as

ed ludlow on the ground where leaders and investors have gathered. he will bring us an exclusive interview later this hour. my exclusive conversation on the heels of apple announcing its offering a competing version of by now, pay later. all of that in a moment. first a look at the markets. apple and microsoft driving shares higher. katie greifeld with us now. katie: like you said, it was a risk on day thanks to tech. we saw a lot of energy in the last hour. the s&p and nasdaq finishing 1% higher give or take. as a result, volatility breathed a sigh of relief. the vix at 24. something to watch in the days to come. bitcoin, even though you saw a resurgence in some big tech names, not as much love for bitcoin. the coinage did trade above $31,000 a coin. i'm thinking about twitter. elon musk threatening to end the deal. that caused shares to drop 1.5% yesterday, today they gave back all of those losses. twitter shares just about flat on the week, 10th of a percent lower. trading around $40 per share, couple of cents above that. if you look at the spread

kriti: you have been listening to cathie wood speaking to ed ludlow in arkansas. talking about innovation but something she did talk about is among the many concepts in the etf space. give her a shout out. let's get a recap about what she talked about. she ended with comments on passive investing. this is something you know about and have written about in your latest book. talk about the significance of passive investing when we talk about low liquidity, high volatility. eric: cathie on twitter said passive investing will be the worst investment of capital. people are saving for retirement and kids' college funds. are you going to put that into ark? we have seen flows go to dirt cheap passive and the other go to stuff that is a good complement, crypto, ark, thematic etfs. she is standing on the shoulders of jack vogel because people in passive love the low cost but they are bored. they want to do something that has made a big upside and he gives them much more patience for ark's volatility. i think it helps cathie because you already own the fundamentally sound sp

., bloomberg's ed ludlow. walk us through the president's message he got pretty heated. >> he did, it was interesting, he started at the port of los angeles, the work they have done the coordination between the different tentacles of the system, the truckers, the operators, the shipping companies. he also talked about the broader problem around the supply chain, the impact of the war of ukraine, he had the ire for the oil companies, he also talked about ford shipping companies -- foreign shipping companies. retailers in this company -- country, walmart, target, amazon pay to get good from a to become he says those rates are high. the bloomberg terminal ic since september shipping rates have come down 27%, he did this rapid spray of look at what is happening. the under lying message things have improved. emily: let's talk about the role of technology, tech companies have been acutely impacted by the supply chain delay. where does this mean for tech? >> we are a tech show, we talk about the cutting edge of drone

ed ludlow is here with the details. what do we know? ed: it's interesting. if you choose to do it, you get partnered with the cowriter. you and one other person. huber says that algorithms calculate your cowriter based on your route and who gets dropped off first depends on the route. there might be times when you are riding on your own and someone gets in. you might be writing with two and someone gets out. they are interest to sing this in limited markets. we have this tweet from somebody that noticed the news in new york city, channeling their inner pandemic experience with a bit of banter. excited for summer of chaotic encounters in the back of a nissan ultima. we can all relate. i remember huber pool and other shared ride service pre-pandemic. you could have three or four people in the car, all in the back. somebody has a briefcase, an umbrella, a dog. this is different. it will be interesting to see the psychology of how users react to this. look at the share performance. uber and lyft. in 2020, things started to recover in the share price off of the e

our bloomberg's ed ludlow has more. i thought we would eke out a gain this week, but the losses friday not able to get it done. ed: for a short week in america, that was brutal. a lot of red on the screen. i hate ending fridays on a negative tone. nasdaq down. the rationale goes back to basics. we have strong hiring data for the month of may. it reaffirms this hawkish stance of the fed. they will fight inflation with whatever it takes. rate hikes are coming perhaps harder and faster than we thought. that weighs on multiple tech stocks. you see that throughout the markets. u.s. 10 year creeping back toward 3%. two corporate stories of the day, twitter, tesla. what do they have in common? elon musk. what did i get woken up by this morning? elon musk. a regulatory filing say they passed this 30 day regulatory window where each party was supposed to notify regulators about the deal. tesla down 9%. according to sources, elon musk sent a memo to employees saying 10% of salaried staff would face job cuts. that is jobs outside

emily: ed ludlow, thank you. sheryl sandberg leaving meta after 14 years as chief operating officer. i had a chance to speak to her exclusively along with my colleague kurt wagner about the announcement. she will officially leave the company in the fall. she will stay on meta's board. here is her answer as to why and why not. sheryl: this was a decision i made that i did not come to lightly. it is about how i will spend my time, not how much i believe in the company. i believe in the company as much as i ever did. i really have complete confidence in the team mark and i have built. i think they will do a great job building the future. for a company that is a huge part of my life and huge part of my heart. emily: for more i'm joined by kurt wagner, who covers meta for us, and devika patrick, author of the book "the facebook effect." kurt, since you and i spoke to sheryl exclusively on the phone, we have been preparing for this, but we never thought it would happen. give us more context about why you believe sheryl

emily: ed ludlow, thank you. you will keep us posted. well, today marks the first day on the job for the new ceo of match. he is leaving zynga, where he has been president since 2016. he is taking over. it's a pivotal time for dating apps, especially as we emerge from the pandemic and much of the world faces inflation. i'm joined by an analyst at evercore who published a deep dive on not only match, but also bumble. so what you think of this leadership and also coming from the gaming space to online dating is that a good thing? >> we will have to see. he has done a good job at singha. that is slightly different but also similar. shweta: two things that are good is one, there are similarities between what he did at singha and match. portfolio assets in a global business, both in favor of what matches strategy is. the other thing that's good is she is not really leaving chris she will be part of the board and working as an advisor to bernard. and also, the ceo change is not a turnaround story. it is not like peloton where you have to rewor

ed ludlow is here with the latest. ed: it's not uncommon to see volatility creep back in, portfolio managers adjust the composition. the tech sector is the underperformer. the nasdaq is down 8/10 of 1% after a game last week. yields are such a big part of the story. up seven basis points. when we saw the gain and equity markets last week, yields were coming down. that is quite interesting. i'm going to bring you a silver lining. valuations have come down, they peaked. names like meda, for example, value buyers have started to come back and. that is important, we are asking ourselves where the bottom for this market is. we have the movers back in the studio. you look at u.s.-listed shares of chinese technologies, jd.com one of the beneficiaries after an investor sold a stake in the company. amazon is considering two prime days this year. that stock is one of the biggest rags, down to 20%. then the big story of the day, stx is talking internally about its options if it can by robinhood. that stock was halted due to volat

ed ludlow there. we will bring president biden's remarks at 1:45 p.m. time from the port of los angeles. i know you're working double duties on this friday but thank you for joining me. that doesn't for me and tom on television. coming up, chair of the white house economic council of advisors will be joining balance of power with david westin on bloomberg television and radio. this is bloomberg. ♪ >> this is balance of power with david westin. ♪

ed ludlow, fantastic as ever. on wednesday ed will have an exclusive sit down with cathie wood. i am sure she has something to say on the subject. coming up, we are going to go to the other end. apple picking off its annual developments in just over an hour. high expectations for their next generation of operating systems. we will get the new watch, we will get the ipad, we will get the macbook as well. i want to know about the vr headset. we will get the latest, next. this is bloomberg. ♪ alix: u.s. equities paring gains as yields pick up steam to the upside. abigail doolittle is tracking some of those moves. abigail: this is the two day chart. this is last friday when we had the better-than-expected payrolls report. that has the effect of good news is bad news. elon musk not so positive on the state of the economy. today is a different story. at one point the nasdaq 100 has been up close to 2%. it will be very interesting to see how the day closes out. very low volume. elon musk, a.d. filing. he says he is asking the company for more information round fake accounts for twitt

emily: i want to break down some of this with ed ludlow. let's talk about tesla. what is the significance of what we learned? ed: the main takeaway is that demand is really strong. they have a really long waitlist for their vehicles. he talked about how they have to build more factories quicker. they are reducing 10% of salaried staff, which is only one third of the workforce. so it's about 3%, 3.5% of the reduction globally. they kind of ballooned and they are trimming back and focusing on the priority, the people that actually build the stuff around the world. emily: employees at twitter probably did not get an answer one way or another whether or not he will go through with the deal. ed: like his recent experiences -- his recent statements, he did not really say. he went through the motions and went through a caveat. but there are problems with lots, they need a shareholder vote, and the quick reference of debt. he suggests that is not solid. emily: i wonder how much it counts that he thinks a recession is likely at some point. ed: he said previously about the

ed ludlow here with more. a day for the markets. ed: fantastic reporting. the role that the selloff in meta shares had. it did have an impact on the market. look at the s&p 500. the nasdaq 100. both down by 7/10 of one percent. the clients accelerated as we saw meta shares selloff more rapidly in the last 30 minutes of trading. the biggest points laggard on the nasdaq 100, weighing down that index. yields continue to rise which is impacting tech stocks. u.s. 10 year treasury up to 2.9%. that's a move. all i us on meta. at one point, down 4%. it did parents declines as more details came out about her replacement, the fact that she is going to remain on the board despite tapping down as coo. one coronet of the market where heavy selling took place was crypto related stocks. bitcoin actually fell back down towards $30,000 per token. you see some of the names involved in crypto, blockchain related technologies. really heavy declines. there was broader impact in the selloff on the social media landscape. you saw that instant reaction in meta shares. twitter also

joining us for more on this, our own ed ludlow. ed: in the last few hours, tesla shuttered a facility in san mateo where there were data scientists working on autopilot. basically the team was taken this video footage from tesla owners around the world who have a camera-based system and annotated it, adding in data the train the algorithm, use cases for self-driving, but improve the autopilot functionality. according to sources, they started with managers in the morning and by the afternoon they laid off largely the entire facility, which i'm told by one source is 250 people. emily: does this change tesla's priority for autopilot? ed: it could be seen as a negative headline but there are around of layoffs globally. elon musk told us last week that it is part of 10% of salary workers. a real focus on ai, a real focus on software. it has been an area of priority in terms of hiring for tesla, especially in 2021. elon musk talk about the importance of data labeling and our software engineering fans will know what i'm talking about, but

our own ed ludlow here to break it down. ed: deal activity across all sources of startups is down, but we also heard from venture capitalists and ceo's that there is caution overall between the first quarter into the second quarter up to june 23. the insider data shows that the deal count was down 23%. you can see the aggregate line , the orange line, has dropped. it is down and that coincided with the volatility we thousand -- volatility we saw in public equity markets. the chart does not show is that it is just the bc's are writing fewer checks, but they are also writing smaller checks. that is where the breakdown becomes a bit more different. smaller checks overall down by 20% in terms of the size of the dollar value that is funding startups. if you look, for example, at late stage startups where there was less of a drop in the number of deals, the drop in the size of the deal was much more noticeable. 41% drop from q1 through q2. to start off, going through a series of these rounds and above. it is interesting. we don't

emily: ed ludlow, thank you. i want to get to another story that could have wide-ranging applications, the divided supreme court struck down a new york law that could limit who could carry a handgun in public. that limited who could carry a handgun in public, issuing a landmark ruling that means there could be more guns on the streets. companies are also trying to get workers back into the office. i'm joined by bloomberg's greg stohr who covers this ruling. greg: this affects six states that have may issue permit laws, which means they don't have to give everybody who applies a license to have a handgun and public. all those states require a showing of some special need. the group includes california, new york, massachusetts, new jersey, some big states and cities. those laws are probably doomed at this point. those states will have to start letting typical people who say i want a handgun for self-defense purposes to get a permit. emily: we have been covering the tragic news across the country where we have seen

emily: ed ludlow, thank you. coming up, we talk to an activist who sounded the alarm about the power of google ai technology. do computers have feelings? can we really trust google to develop this technology responsibly? this is bloomberg. >> done correctly, in many ways it will be helpful to you. in india over one third of requests on phones come through voice. that's people there something people take for granted. you will expect to speak and understand any language in the world. that will make it better. you'll find more of you and emily: earlier this week a google engineer on the ai development team was suspended after claiming the chatbots has feelings, placed on paid leave last week after he posted on medium he had encountered a cindy and ai igniting a fiery debate about the possibilities and limits of the cutting edge technology. dr. margaret mitchell, chief ethics scientist and researcher and former google ai employee who worked on that ai development team joins us now to discuss. margaret, thank you for

tom: ed ludlow nailed that. i'm going to give credit to the economist, two issues ago, i can remember, a tour de force explainer on inventories. we make jokes but this is serious stuff. once it is cleared out, free cash flow pops. they go from just in time to the new reality, just in case inventory. jonathan: this is an element of the season dutch of the thesis. the idea there is too much into dutch too much inventory, the shift from goods to services, to the disinflationary force to: things. maybe we can talk about that through this morning but the thesis is that inflation has to come down for cyclical reasons kathy has been talking about. rates don't have to go much higher and what wins in the market, the stocks that she holds. that is the hope. lisa: [laughter] exactly. that's why people talk but this is a self-serving prophecy. it's interesting, in terms of how we are judging price moves, how idiosyncratic some maybe and how they stem from unprecedented. -- period of time, how much we don't have a handle on

she spoke exclusively with our very own ed ludlow. cathie: if you look at our performance, o flagshipur performance -- our flagship performance from the low of covid until the peak of february 2021, that was an increase. we had a lot of problems through the coronavirus. we were rewarded accordingly. since then, when we hit our t rough, down 75%. why? inflation and interest rates. there -- it is and trusting to be here, walmart territory, because we are learning a lot from the retailers now. [indiscernible] the fear of rising interest rates and inflation control has gripped the market. but not the equity market. if you look at the fixed income market, it does not agree with it. the 10 year treasury bond yield is 3%. that instrument should be one of the most responsive to inflation fears. so 3%, gdp growth for percent over the next -- 4% over the next 10 years. nothing corroborated by the fixed income markets. i don't think we are in a period where we can't extricate ourselves from this. the scrambling to bring more and more inventory t

ed ludlow for bloomberg news in san francisco. yousef: let's get to some of the other business flash stories with laura wright. laura: pfizer has asked u.s. regulators to improve its covid vaccine for emergency use in children under five. last month pfizer and its partner biontech announced in may that the three shot regimen was highly effective in children. that trial is likely to pave the way for infants and toddlers to be immunized. lawyers for goldman sachs have asked a judge to suppress the names of two senior executives in one of wall street's biggest gender discrimination lawsuits. women suing the bank have asked for the disclosure of filings naming high ranked alleged sexual harassers. goldman are not dependence and say such a disclosure would sensationalize the case. elon musk has given an ultimatum to tesla employees, saying everybody has to return to the office. the ceo sent in emailed to executive staff with the subject line "remote work is no longer acceptable. anyone who wishes to be at the company must work for 40 h

ed ludlow is here with more. stocks rallied yesterday after the fed boosted the rates and plunged today. what gives? >> this real sense of deja vu. a fed meeting where they take action, stocks rise, less than 24 hours later, lots of red on the screen. the nasdaq 100 very tech heavy. the s&p 500 closing edits lowest level since 2020. the u.s. 10 year yield was almost 3.5%. it has come down to 3.2%. that's a drop of almost 30 basis points since the time i woke up. i have been awake for a long time. it is a serious move in yield that is had an impact on the equity market. come with me into this chart. yesterday we saw $24 trillion shed from market cap indices all around the world. a large percentage of that comes from the u.s. alone. meta cap stocks have seen huge declines. these were really the on per -- underperformers of the market on thursday. tesla down 8.5%. news that they have raised prices, questions about global demand and recession. another stock i am watching, twitter. the leader talked about the future o

bloomberg's ed ludlow joining us. that wraps things up for me and anna. coming up, etsy steven sund will be joining "balance of power" with david westin. i'm also headed to radio, so join me on the cable, or check it out as a podcast. this is bloomberg. ♪ >> from the world of politics -- >> fair debate to at the ar-15-style weapons and whether they should be sold to 18-year-old and whether the limits should be raised to 21. >> to the will the business. >> one of the things the president is saying is we will stay out of the fed and the other things we will do is reduce costs. >> this is "balance of power" with david westin.

bloomberg's ed ludlow back to unwind it all. ed: we were modestly lower across multiple indices, especially tech indices. look at the nasdaq 100, off by 0.2%. chip stocks, some of the worst performers. checksum both the s&p 500 and the nasdaq 100. you also see the index, it should meet up with the mega caps in the u.s. nifty shares of chinese tech companies, modestly lower. they have been higher during the session. the market china make up its mind about the fed's ability to fight inflation without causing recession. don't take my word for it, have a listen to fed chair jay powell. jerome: it is our goal, it is going to be challenging, it has been made more challenging by the events of the last few months, thinking of the war and commodities prices and problems with supply chains, and the question whether we are able to accomplish that is going to depend to some extent on factors that we don't control. ed: the market sees the idea that this is the biggest admission so far that there's a real risk of hard landing. the labor marke

haidi: cathie wood speaking exclusively with ed ludlow. next, qantas is scrambling for more staff as the flying kangaroo gets caught up in the resurgence in travel demand. this is bloomberg. ♪ shery: as the world grappled with the fast-moving spread of covid in early 2020, singapore airlines executives realized bold action was needed for the carrier to survive. the ceo told us exclusively about the difficult decisions that had to be made. >> it has indeed been unprecedented for the airline industry and singapore airlines especially, given that we have no domestic market. just to give some statistics, in january of 2020 we were carrying about 3.4 million people. by the time we reached april we were only carrying 11,000 people. huge drop. our capacity was about 3% of pre-covid. it was a very, very tough time, because as an airline, we do burn quite a bit of cash. we still need to maintain our plans, pay staff, and all that. cash burning was about $300 million to $400 million a month. haslinda: what has been the biggest challenge of the las

ed ludlow, having fun, i think at the moment. alix: we are taking a look at janet yellen. she is still testifying in front of the finance committee. she says one third of inflation is new and used cars that are affected by chips. she also talked about the chip shortage, highlighting the fed's role in fighting inflation, so continuing to pass that back over to the fed. we will continue to update those headlines as they cross. this is bloomberg. ♪ guy: let's talk about where we are worth european markets. we are heading toward the end of the day this tuesday. for the headline level, not really a significant move. where we are seeing a move is in reaction to what we got from target today. retail is the worst performing sector in europe. i'm not sure the pound is treading on boris johnson and his problems, but we are seeing traction today. brent crude is up by around .9%. boris johnson is certainly having a few issues right now. he had a cabinet meeting earlier on today. he basically sent the message out that we are going to draw a line under party gate. those people don't b

yvonne: ed ludlow with the bloomberg's scoop on tesla. we will see how that affects markets here in asia as well. pinterest ceo ben silbermann is stepping down and handing the role to someone else. during his decade long run in the job, he saw pinterest grow past 400 30 million users with an annual revenue of more than $2.5 billion. he will move to a newly created role as executive chairman, and keep his board seat. an inflammation analyst says broadcom will remain a key supplier for apple's iphone, it pushed the chipmaker to its biggest gain on the nasdaq. he said that apple's development of its own modern ship has failed. stay with us on bloomberg tv for live coverage from the forum in mexico. we will be moderating a panel. this is bloomberg.

ed ludlow is with the president in california. dow futures, negative 300. spx, -15. 18 beats down to 16 and the 10-year yield, three point 05% and maybe a little more quiet than what we see in equities. a good time to speak with michael dart up, i -- darta, i want to look at the nominal basis, forget about fed talk and real inflation, how do we withstand a nominal inflation rate of 8.6%? michael d.: well, i think this is exactly what you end up getting when you run the nominal economy hot with double digit growth rates on average tending to hit the bottom of the business cycle in 2020. any look at historical experience will tell you that. unfortunately for households if we look at the main data, the proxy for nominal -- nominal income out of the jobs report which is wage growth and hours growth and employment growth sums together is at about 10%. all of that is being eaten up by inflation with the report. lisa: there is where i wanted to go with real average hourly on an hourly and weekly basis. on a weekly basis it is the most negative it has been going ba

i want to bring us some commentary from ed ludlow who is live at the port. what are we expecting to hear from the president on a huge cpi date? >> inflation is not coming down quick enough and the administration will act to bring it down. it was interesting because oil and what the u.s. can do the energy industry. the question is what is the president doing with the supply chain on the ground? i am being told that the labor secretary and transportation secretary are both very active having daily calls with the port of los angeles. backlogs here at the port, a lack of container space at a time when you get robust wealth, huge consumer demand helping to drive up prices. in the background, you have the longshoreman's union and the warehouse workers union in talks. if the talks are not successful, there will be further disruption at terminal island and that impacts the supply into container prices and we see inflation start to come up. the driver in the cpi is food, rent, gas. here at the port things are improving and we don't want to go back to a situation wher

i'm ed ludlow. resident biden will urge congress to pass gun-control legislation in a primetime address from the white house tonight after a gunman killed four people at a medical facility in oklahoma and a week after a teenager killed 19 children and two teachers at an elementary school in texas. on capitol hill, a bipartisan group of lawmakers is negotiating a possible agreement following that string of high-profile shootings.

ed ludlow is here as well. you were covering the meeting in real time. we had the contents leaked to us in real time. what happened? >> your right to phrase it in the it is what he did not say. it was billed that he was going to outline his interest in buying the company. emily: he wasn't explicitly asked. >> basically how this works is twitter staff were invited to ask questions through an entire -- internal/channel. those questions were aggregated then asked to elon musk. he offered interesting insight into how he would change the platform. he talked about the advertising model which is interesting because many people thought that it wasn't good in his mind. one that jumped out at me was the idea that he would charge users for verification to verify that you are human. emily: what do you make of let's start with the business plan. >> some of these ideas are great . the verification program if you can call it that has been broken since it was created. it would be fantastic if someone comes in with an idea to fix that. i think the larger question is all

ed ludlow has all the latest. ed: you can see that spending fell for the first time in the year, reinforcing recession fears out in the market. big drops across the major indices. i keep going back to u.s. 10-year gilts, down another seven or eight basis points. when yields are rising we saw a pain in tech stocks. when yields are coming down, look at the red on the screen. it's june 30, we made it halfway through the year. look at where we are, six months into 2022. frankly, it has not been great out there. you look at the declines on the s&p 500, the worst first half of the year since 1970. the nasdaq 100 worse, philadelphia semiconductor index, worst first half of the year on record. i can go on and on. what is interesting is how bullish analysts are, lots of by ratings. -- buy ratings. when we speak to investors and hear from endless, there is bullishness. are they just behind the curve? finally, an interesting barometer of what is going on in the world is one of the chipmakers, macron, reporting earnings after

ed ludlow has been taking a deep dive on that. ed: how quickly things change. we want to move into cloud and cloud is less than a quarter of revenue and they performed. they are giving a bullish outlook about growth. 25% in the third quarter, at a time most are worried about recession, cisco -- [laughter] they are really important to get a read on the economy because this is where businesses spend their money. emily: you heard what chuck robbins said. he's optimistic but it is, located. what is oracle saying about the economy? ed: there are macroeconomic headwinds, but what is interesting is just like cisco did, they are maintaining the idea that demand is there. even smaller businesses are willing to spend on moving because over the course of the pandemic, they learned investing in moving the cloud is cost-efficient. it might be an upfront cost or a brave decision but you are not labored with a lot of hardware or service. seems like a smart choice. emily: you still need technology to keep remote workforce is connected. larry ellison -- we don't talk about him

ed ludlow how's this. >> sheryl sandberg, took facebook now known as meta to a behemoth bringing in millions of sales last year. she will stay on the board but the writing has been on the wall for some time. there is a risk -- in a conversation, she gave her reasons -- >> in 14 years, i want to make more room to do more with the nonprofit with my foundation. i have not been able to do as much i wanted to. it is a really important moment for women. >> when she joined facebook it was just at a fraction of its base. mark zuckerberg, college dropout with very little experience. he grew to a multiplatform company that has more than a billion users in its platform. the replacement is also capable. focuses on the company's growth initiatives. it was interesting to see it was shocking, the investors identified some key risks in the announcement. facebook also saw in transition for being at face model when it relies on users being targeted. they want to sell more hardware and have users spending on services through augmented reality. dani: shares falling there. coming up, jp morgan ceo jamie dimon is

i'm joined by ed ludlow who reported the story for us. first of all, we got a big internal memo. it was internal and not to us. ed: the latest one. emily: now we have another one. ed: this is classic end of the quarter stuff. tesla's quarter ends at the end of this month and the idea is that he is pushing staff. a rallying cry, he pointed out, that this was to remember that shanghai shut down and there were extraordinary measures to keep that ongoing. they rebounded in may. he said this was the final push. there was a second email a day later when he said that if you realize what you guys are doing, it means something. emily: he is sending a lot of emails and tweets. how does this tie into i have a super bad feeling about the economy and remote work is essentially over. ed: it's a stark contrast to the last set of emails where he said according to sources that he would lay off 10% of salaried workers because he had a super bad feeling about the economy. he clarified that those were building staff, they are not the target of layoffs. october or november of last year, tesla was tal

ed ludlow is here with all the moves. ed: you look at the s&p 500, we are down for a third straight day, potentially flat as a floppy disk. the nasdaq 100 is up. if there was real pain, it was in semiconductor is. the semiconductor index, which we will come onto in a minute -- it is interesting if you look at the u.s. 10 year treasury. the yield coming down by eight basis points. that did not do much to support stocks. there was a lot of fed speak. jay powell on the bloomberg panel in europe saying that the economy is strong and it can withstand crisis. the concern is that if the fed rates rise to quickly come into being an increment, take a breath into recession. it is nice on a daily this where things are not moving with fiction in any direction to ask where we are. look at the nasdaq 100 year to date. kind of hit the bottom for this index on june 16. and we had a rebound, but you see some big names on wall street like j.p. morgan still reviving earning estimates. we are entering into that key earnings period and we sho

ed ludlow back to unwind it all. ed: multiple indices, look at the nasdaq 100, off by 0.2%. chip stocks, some of the worst performers. you see the index made up of megacap's and some chinese tech companies, modestly lower. they had been hired during the session. -- higher during the session. have a listen to jay powell. >> it is our goal, it is going to be challenging, it has been made more challenging by the events of the last few months, thinking of the war and commodities prices and problems with supply chains, and the question whether we are able to accomplish that is going to depend to some extent on factors that we don't control. ed: the marketer sees the idea this is the biggest admission so far that there is a real risk of hard landing. the labor market still incredibly tight. the economy still incredibly robust. some of the tech movers, interesting. amazon up a quarter of a percent. a leaked memo where amazon is talking about the turnover in its workforce being high relative to other industries, being a concern. what happens to that labor market as we moved to the f

ed ludlow is here with more. ed: an effort to calm prices. this historic day -- 75 basis points by taking the federal funds rate to 1.5%, for the interest rate could rise to 3.4% by the end of this year, 3.8% by the end of next year. saying the fed is strongly committed to returning inflation to its 2% objective, which is a long way from where we are. it warranted a bigger hike today, according to powell. there is no sign of a slowdown. the markets green on the screen. there is not one main takeaway. the s&p 500 up 1.5%. the nasdaq is up 2.5%. a pullback in yields. a drop in the dollar. the bloomberg dollar index down 0.9%, the biggest shift since may. no one takeaway. the markets looking at powell's words, thinking of the past. >> i do not expect moves of this size to be kind. from the perspective of today, a 50 basis point or 75 basis point increase seems most likely at our next meeting. ed: this is the nasdaq 100. after jay powell uttered those words around the size of potential increases going forward, you see what the nasdaq 100 does. th

kathy's fireside chat with ed ludlow. alix: looking forward to that. also talking about the ecb decision, don't miss that. ticker changing from fb to meta-. also capitol hill will be prime time, quite a big deal in the u.s.. senator rick scott of florida joins balance of power with david westin on television and radio. francine, thank you for joining me. i'm also headed off to radio. join me there. this is bloomberg. ♪ >> from the world of politics -- >> it's going to be very important in the next few weeks to see how well the ukrainian forces are in absorbing all of what the u.s. and other nato and non-nato western countries are providing to ukraine. >> to the world of business. >> i think the president has been clear fighting inflation is his top domestic priority. >> this is balance of power with david westin.

ed ludlow joins us. i think it is remarkable to see the public service in the atlantic and pacific of the uss iowa of decades and decades ago, and no, forget about it, it is a new america and a new pacific. what does the president want out of the summit of america is to show across the pacific? ed: his focus has been on western leadership. you look at the commentary he made in his remarks about the west, potentially could be a leader in all things freedom, all things capitalism, all things progress. the western world is not pulling its weight, you talk about the iowa, what we expect from biden at the port of los angeles is hiding talks, specifically dialed into inflation. he has been talking all week long about how ways we can tackle inflation, solve logjams in the past 18 months or so. for him, outside of his role as international leader, his just pressure point at home is inflation and how it is hurting americans. tom: is the inflation report in 40 minutes overwhelmed, manufactured summit of america's?

ludlow joins us from san francisco. what do we expect them to say? is he going to tell staff? ed: there has apparently been a slack channel at twitter for staff to submit questions and management would look at them and collate them and there are some key themes. the first is obvious, is this deal going to happen? it's a question that we all have, the market. beyond that there is a lot of interest in his politics. debate about some of the things that he has said not sitting well with certain employees. there's also interest in his work from home policy. we discussed on this show his internal memo at tesla where he said you had to be back in the office at least 40 hours a week. twitter has the opposite policy, indefinite work from home policy. a lot of staff want to know about that and unsurprisingly they want to know about things that will impact them personally like compensation and any policies that would affect their livelihoods. kriti: i want to go back to the story about whether or not this deal is believable becaus

we have inventory issues here piling up as cathie wood told ed ludlow the other day. we could see goods prices here come down where they are not going to see that. tom: on a good -- goods dynamics, and that key core level many are talking about. i want to do a data check to get us started. the nasdaq with a little bit left. i don't want to put much to it because miller is with us and we have to bitcoin. 29,000 on bitcoin under the 30,000 level. oil does not give it up. i think that is an important statistic this morning. dollar with some legitimate dollar strength or is it. euro weakness moments ago. we can report this. 1.5 096 and i really want to point out with a note yesterday looking for a while. for a while this morning, lisa abramowicz. lisa: interesting to see even after i somewhat hawkish statement from the ecb, even still, you are not seeing euro strength persist as the fed is expected to have to respond to what we get out. what the pros are looking for is a core cpi stripping our energy, food. the amount people are getting paid and how much cannot persist be

alix: ed ludlow is going to have a fireside chat with cathie wood, so stay tuned for that. that wraps it up for me and guy. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ announcer: from the world of politics -- >> i think congress is by and large totally useless these days. that's not only hurting joe biden's effectiveness in terms of his popularity, it's hurting america and the world. announcer: to the world of business -- >> nobody is going to be very happy until inflation actually comes down. there's no great way to message 8% inflation. announcer: this is balance of power with david westin. da

haidi: cathie wood speaking exclusively with ed ludlow. let's take a look at australia and new zealand. bonds, we saw kiwi bonds, yields at the highest since 2015. the next level to watch is around 3.95%. above that would be an eight year high. the last time we saw anything above 4% was back in 2014. as we had the rbnz flagging they would start selling debt. also watching australia extending the drop we saw on wednesday, close to topping its april high. potentially beyond that, looking at 80 are highs as well. with heard from barclays, they are expecting the australian bonds selloff to ease and peak in the third quarter with this frontloading, or at least a race to neutral underway with a supersized hike from the rba. our next guest is allocating back to fixed income. ceo and founder of sgmc capital. great to have you with us. we are seeing more of this willingness to go back to fixed income. where do you find opportunities at the moment? >> we are looking at fixed income. starting to get absolute returns and yields term becoming quite att