suspect. frank james is still a large. the mayor spoke with bloomberg television today. >> based on the briefing of my law enforcement officials and based on the evidence we were able to accumulate, he has been updated to a suspect. we are asking you to assist in the apprehension. please do not approach him. if you see him or know about his whereabouts, please notify law enforcement. mark: police say keys found at the scene of the attack belonged to a u-haul van rented by james. lee say the suspect set off two smoke grenades on a manhattan bound train and then fired a nine millimeters handgun at least 33 times. ukraine's president is proposing to swap a tycoon with close

kremlin times he was detained by his country's security service for prisoners of war. he is seen as one of president vladimir putin's top allies in ukraine. he was placed under house arrest last year. local authorities say he went missing around the start of the russian invasion. in a video address, president zelenskyy offered to exchange him for ukrainians and russian captivity. -- in russian captivity. sid miller is blasting what he calls governor greg abbott's catastrophic crackdown on cross-border trucking. vehicle inspections at the border crossings is strangling commerce and doing nothing to curb undocumented migrations. mexican truckers begin blockading a keyboard or bridge monday to protest the decision to deploy state troopers to conduct inspections. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton. this is bloomberg. ♪ john: bochum to "bloomberg markets." >> tech stocks driver event as bond traders dial back aggressive rate hikes from the fed. the bank of canada delivers its own jumbo rate hike, 50 basis points. the biggest and 22 years. vehicle prices continue to rise. today we will talk to toyota's bob carter about supply chains, ship shortages -- chip shortages and electric. >> let's check the major averages. we are seeing on the equities

green screen across north america. yields cooling off a little bit. toronto, up 150 plus point. worth noting the s&p steadily gaining ground over the course of the day. nasdaq has been the best performer. that is in part because we have seen that stronger performance from the technology stocks, whether it is in names like michael or -- apple or microsoft. the question is whether these gains can hold. investors today may be suggesting inflation has peaked and they want to step back in. we have seen this intraday trading before. coming off a three-day slide for the s&p 500. for the month still a lot of defensive names outperforming. matt: thank you very much for that. let's pick it up with the developing story. police continue their search for the suspect who opened fire in a subway in brooklyn yesterday. let's bring in patricia hurtado.

she's been covering the story from the beginning. we now know frank james is a suspect, the suspect in the situation. do we have any idea of his motive? patricia: there is animas he was voicing against eric adams, complaining about his treatment of -- possibly complaining about homeless people. is crackdown on law enforcement. it is unclear exactly. he had a lot of grievances he was posting on the internet. they are still gathering that and analyzing it. he did -- they did increase the protection of the mayor after they discover this. jon: a lot to continue watching for, patricia. in terms of what we know if we are talking about subway attacks, what could the road

ahead look like? patricia: we have had prior incidents in the subway. there was a foiled plot in december of 2017. it was pretty horrific. a guy detonated a pipe bomb on his body. miraculously the suicide bombing was not successful. he earned himself but he was apprehended. he was prosecuted federally. that was in the tunnel between times square and the port authority. you can imagine in the middle of the morning rush-hour with that kind of carnage would have incurred if it was successful. it was a foiled plot to bomb grand central and -- grand central station and the port authority on another occasion in 2009. they apprehended three attempted bombers who actually were islamic extremists.

jon: helpful context and we will watch for headlines. patricia hurtado joining us. as we watch for developments on that front one thing matt mentioned was central-bank action. we are watching the fed and the bank of canada for what it's worth today. everyone around the world is trying to figure how central banks will deal with sky high inflation. today in canada we saw the central bank raise rates by the most aggressive we have seen at a single decision point in more than two decades. a lot of people expecting them to continue on this aggressive path. the canadian dollar rallying on the news on the belief possibly they can do these moves and keep the economy afloat. that is the key recipe a lot of folks are watching right now. matt: you have to wonder why they are all working individually rather than trying to make these moves in concert.

as you point out, many of the biggest central banks are trying to fight inflation. the ecb, the bank of england, the bank of canada going big now. the fed needs to go big. i'm positive they must talk to each other sometimes behind-the-scenes. i'm not sure if they are planning a concerted effort and it would make sense since the inflation is global. jon: there was a true go was once the prime minister. living next to the u.s. was like sleeping with an elephant. it is hard for canada to ignore what the fed is doing this year. the other factor with this inflation story, look at oil prices. that has helped the canadian economy. they are unique aspects you can pinpoint in canada. let's talk about all that with an economist who covers the canadian economy, veronica clark with citi. the general idea, the ability

for the race to raise -- tank to raise rates and fight inflation but not tip the economy, would you say about what we learned today and your reaction to it? veronica: yeah. it was expected going into the meeting. this is a much more aggressive bank of canada. they were focused more on the upside risk to inflation. i think eventually they could end up being a bit more cautious than the fed raising rates later this year and the next year. -- into your. -- into next year. right now inflation is not a level for you can be too cautious. matt: are they talking to members of the fed or the boe or the ecb? veronica: yeah. i'm sure they are. especially the fed. a lot of pricing for the bank of canada moves with the

fed expectations. the fed will be the most important central-bank for them to follow. especially with regard to the currency on the interest rate differential. we are on track to have a 50 basis point hike in a few weeks. jon: matt and i were talking about the housing picture. it is getting a lot of attention in the u.s. to gets a lot of attention in canada where many canadians are deeply indebted over the last decade or so. they have taken on a lot of debt. we will be watching closely what happens to home prices as rates rise. whether people can handle paying more on their mortgages now. how confident are you on canada's economy to navigate that given the housing exposure in the country? veronica: it is certainly something that may be important for the bank of canada. for u.s. and canada, that is the

sector that would feel the impact of higher rates first. that is partly the intention of higher rates, to slow demand that is too strong and putting pressure on prices. you want things to slow and home prices to slow. especially in canada. those are directly input into cpi. later in the year i think maybe a steep slowing and housing would get the bank of canada more concerned. for now household have a lot of savings and rates for number of years have been low. matt: anybody trying to get into the housing market in canada, first-time buyers have extreme difficult time right now. how much of a concern are asset bubbles to the bank of canada? the fed has taken different approaches to that sort of thing. pretty much staying away unless they are inflating them themselves. what does the bank of canada

think about that? veronica: the asset classes are the most sensitive -- that are the most sensitive are housing. household wealth is in a much worse position at that point. it is hard to tell what is too weak. part of the intention of fire rates happens to be slowing housing. matt: veronica thank you for joining us. veronica clark from citi talking about the bank of canada. jp morgan kicks off earnings for major banks in the u.s. with kind of mixed results. we will talk about the report and what to expect for the rest of wall street, seemingly all coming tomorrow. this is bloomberg. ♪

matt: this is "bloomberg markets ." time for the stock of the hour. it has to be jp morgan today. kicking of bank earnings. the shares are lower by more than 3% after the results were

clouded by a loss of $524 million tied to volatility caused by russia's invasion of ukraine. sonali basak is here with more. it seems like almost every bank is reporting tomorrow. but was the opening salvo like for jp morgan? sonali: bank of america on monday. four tomorrow. it will be a long day. goldman sachs and morgan stanley reporting at the same time. that will be a lot to absorb. we want to see competitive training here -- trading here. it did not fall near as anyone expected. it only fell about 1% which is good for goldman. matt: we were looking for a drop in the beak the street's estimates by like $1 billion. sonali: that's a good sign, especially currencies and emerging arc is for really solid gains. citigroup is another place that could bode well for trading if

they are able to keep those numbers. the other thing jp morgan said that was positive about prime balances that are high. the buy side is also ready to be taking risks. to be clear, volatility is a double-edged sword. they took losses tied to the russian securities as well as that big nickel client, $220 million loss. jon: when i was listening on "surveillance," you highlighted the loan growth component. it is hard not to think is a good to the other bank earnings everyone will look closely at that as a gauge of what comes ahead for the rest of the year. sonali: the first bank tomorrow is wells fargo. jp morgan has been expanding the headcount. it's been investing in the payments infrastructure. they are getting bigger in the wallet and credit cards. as rate rides some assets begin to look very difficult for the consumer. we will see that not just with

tomorrow with wells fargo, citigroup as well and monday with bank of america on whether their net interest income can hold as steady as jp morgan is saying there is can. matt: were you watching "bloomberg surveillance" early edition or the og surveillance? jon: i start early with you. it's a great way to start your day, mr. miller. always there right along with you. you never know what matt is going to say about the auto industry. he will have more to say next because we will get perspective on that industry. toyota topping gm for the topsail spot in the united states. we will get perspective from bob carter, executive vice president of sales for toyota north america. his take on some of the challenges the industry is facing right now. this is bloomberg. ♪

matt: this is "bloomberg markets ." let's focus on what's ahead for the auto sector. carmakers continue to grasp -- grapple with chip shortages, supply-chain snags, rising prices. joining us now is one of the most experienced senior leaders in the industry. bob carter, toyota's top sales executive in the u.s. i want to get as much insight as we can from you here. the industry at large was dealing with these problems before the invasion of ukraine. it seems like they have made the supply chain more difficult to deal with. they boosted inflation in a lot of cases for the raw materials you need to buy. it has not helped the chip shortage. when you say they made your job a lot more difficult, the war in ukraine? bob: yeah. thank you for the time this afternoon, matt.

the supply chain is very challenged at this point. we estimate the consumer demand within the u.s. is about as much as 1.2 million more than the industry is going to be able to produce this year. combine that with the inflation and raw materials, we are having a two-inch sword. chronically undersupplied versus the command -- demand consumers are looking for. we are having escalation of raw material prices. a unique time to be in the car business. matt: are consumers willing to pay the price? i have seen a lot of your competitors and toyota as well able to raise prices at levels that are to me eye-popping at first but then i think i guess i would pay that. bob: yeah. in the short term the demand is

so high versus the supply. the industry will be very healthy. you are seeing that both in pricing for these raw materials as well as the decline in typical retail incentives. on the longer-term, and i look at that as 2023 and beyond, there may be some concerns about the pricing of the raw materials, the pricing of vehicles and with escalation of interest rates you were talking about earlier. that may have a downward suppression on the auto business. again, i don't see that until mid 23. the current demand versus supply is so imbalanced at this time. jon: i want to try to put more math around this. i heard you say that cars are being sold before they are built because things are so tight right now. once we have worked through some of the key supply chain issues, how much time?

another six months after that when the inventory picture gets basically to the right shape for you as a business? bob: yeah. first of all the crystal ball on supply chains are not very clear at this point. we have solid facility through q2 and q3. we are making estimates on q4. even with those estimates we believe 2022 demand will be somewhere around one million units a lower than demand. at that rate it will take us well into 2023, perhaps even q3 of 2023 before inventories begin to normalize. this type car situation we are seeing, both new and used, will probably be with us for another 12 to 15 months. matt: oliver from bmw said even

into 2023, maybe 2024, the chip shortage will not normalize. toyota has worked with bmw on the supra, the z4 at least. do you see that, the chip problem lasting through next year? bob: quite possibly. the further you get out, the more cloudy it is. it is clearly going to be a couple of years before more chip capacity comes online. i want to point out while the biggest issue with the supply chain has been microchips, it is not the only issue. we have less coast port slowdowns. others popped up due to covid and some of the labor shortages we have experienced. it is beyond microchips. again, microchips continues to

be the center of the industry. matt: bob, thank you for joining us. great to get some time with you. bob carter executive vice president of sales for toyota north america,. we did not get to electrics but toyota making a big push into electrics. it has to be the problems are exacerbated by the fact they need more chips. every component has to have some kind of silicon wafer in it. it is a tough time right now. prices are going higher and higher. jon: they are. corollas and camrys are in demand. lots to think about there as well. this is bloomberg. ♪

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mark: the suspect in the shooting yesterday in brooklyn has been apprehended. this is according to a report out of nbc news. frank james has been apprehended

in manhattan, according to nbc. reporting that now. we are awaiting the press conference in new york from nypd officials. the talk more about this. frank james, the men first and a person of interest in the shooting in brooklyn yesterday has been upgraded to a suspect in the shooting and has now been apprehended. i am romaine bostick alongside caroline hyde and sonali basak for "bloomberg markets: the close." the story riveted not only new york at the nation yesterday, a shooting of 10 people aboard a new york city subway train. at least a dozen more people injured in the chaos that ensued. a manhunt that brought in basically authorities from all across the new york region as well and federal authorities. guys, a situation that rattled a lot of new yorkers. we heard from eric adams, the