started to decelerate. it grew at a less strong pace. >> they need to fight in -- tighten financial conditions, they are not on that yet. >> it is undoubted that we are seeing a slowdown in economic activity in the rakes. >> at some point, the fed will make a judgment call between forcing an inflation or stagflation very >> this is bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning. this is bloomberg surveillance, alongside tom keene and lisa abramowicz, i am jonathan ferro. futures are flat on the s&p and up a tent on the nasdaq. but there's only one stock to talk about. netflix is getting hammered. tom: it is really fundamental. some would say from the 50's and 60's, the new idiot box. streaming is strader this morning. jonathan: stocks are down this

morning. they are explained to investors that they have gone against growth. any potential growth. largely, somewhat, how did this get out of their control? tom: we are going to do a lot of sophisticated financial review of that over the next day and coming days, but there is a point where growth switches to cath flow -- cash flow. can i make the switch that comcast did years ago? jonathan: when you thing about valuations you think about the real yield in the body -- body -- bond market. lisa: people a been watching this because it changes the dynamic. to put this in perspective, real yield was positive. it was normalcy. now it is an abnormal see, but we are getting back to that place. how does that move the dial and some of the various calls --

bearish calls which mark is a reflection not only of fund metals but valuation. jonathan: did you see bank of america get long treasuries over the 10 years. lisa: we have not abandoned the low-inflation trend that we saw pre-pandemic, but how long does it take it, and how long does it take the fed to disrupt the near term to to get there? jonathan: to 25 on the 10 year after coming close to 3%. tom: everyone has a different in pinion -- opinion, and it will keep us employed for the rest of the year. you can bring that over to netflix, quite frankly, but it is about growth in the american economy. if we get growth statistics that the imf was talking about yesterday, that is not all that bad. the market did a little better off of that economic outlook release. jonathan: we have a ton to work

through. your price action looks like this on the s. unchanged. -1/10 of 1%. netflix is down hard -- 26%. in the bond market, yields her back. 2.872 five. you'll start down pipe six basis points. the euro-dollar is 1.0085 four. up .6%. we are talking about a july rate, really? lisa: an official was talking about the potential for lift off in july. let's see if they can get that off the ground. here's what i am watching today. at 10:00, we get existing home sales. why i am interested in this is because of what we saw yesterday. home starts. we are expecting a deceleration in sales after that 5% threshold in terms of average mortgage rates. the highest is going back 2011, but yesterday, housing starts came in at the fastest pace, going back to 2006. is this evidence of the hawkish

talk not being enough to really drive down some of the momentum and some of the key markets? that is something that spooked the financials yesterday mine. this morning, we get the fed speak train before the quiet. . we have mary daly and charles evans out of the fed reserve in chicago. how much do they talk about what we heard yesterday? charles is taking a different turn. less hawkish. how do they move to the 2:00 p.m. page book. i know you are all turned to those. tom: do i watch the french debate or the beige book? jonathan: after that, we get tesla, and tesla has not seen the same kind of per swarm and's best performance as netflix. how much is the discussion about twitter and not about twice the

-- tesla at all. jonathan: right now the conversation is about netflix. what happens if they are looking for 2000 subscribed -- 200,000 of grabbers and depots -200 k. they were looking for 2.5 million scribes, and you tell the market you will lose another 2 million? what happens is obvious -- the stock is down. almost 27% now in the premarket. joining us is alex. we have asked this question a lot of times in the last hours -- what happened? alex: and of lockdowns and inflations. they've enjoyed really good growth over the past years because we have been watching from a computer screen or a tv screen to watch content. they're not as me people who need it, and they are unsubscribing. you combine that with the impact to inflation where people are maybe soaring to look at what is discretionary income and spending, sorry, and what they can get rid of. netflix seems to be on that list. tom: a lot of people look smart here.

some have died it since day one, and bushes been the same way. here's nathanson writing it up in bloomberg news last night. it it is just shocking. every thing they've tried to convince me of over the last five years has been given up and one quarter. it is such an about face. i want to know, what are the little guys doing off of this shock. the egos at warner bros., hulu, whatever that messes, we saw the cnn plus news last night. i want to know what paramount, tc we see paramount does, off of the shock. alex: they've been pivoting to growth stocks. disney has told investors, we are not going to be as profitable over the next few years because we are investing a disney plus. they will benefit from that. then they get on the bandwagon. they pivot to becoming a value stock, and becomes a value stock because you mentioned comcast

earlier. it is on cable companies. they signed customers up, sometimes for two-year contracts. therefore, they have spent the contracts on customer acquisition, and thousands of dollars over the course of that contract. with streaming, it is months and months of subscriptions, so acquisition remains expensive bread you have to invest in content to retain customers, and those customers can turn out every month. >> is this the netflix story or a broader economic story of inflation of consumers cutting back. >> is a netflix and streaming story, but it is part of the panel of inflation. we are seeing this across various industries where they have to deal with changes in consumer spending. that is the question for netflix -- have they reached the maximum number of subscribers they want to get in that market. they say that there are 100

million households out there, cherie netflix passwords. they clearly were saying that is what investors indicate there is upside. but the fact that they think they need to introduce an advertising-based model, which presumably will come in around the five dollar mark, as opposed to the $12 mark as it currently stands, that means where they had telegraphed growth, it will not come from that. they want to go lower the market. one thing that is really significant here is if you think about the stocks, mango, you might would call them, another facebook is better, all of these companies are getting into each other's turf. they are getting into advertising enough looks his case. that is facebook serve. the more they do that, the bloodier the battle will become. jonathan: great to catch up. fantastic coverage is always. the danger with a story like this story is that if -- it can become whatever you want it to be. take your pick, confirm your priors. there's something for everyone for the story overnight. lisa: there is an idea of

saturation of streaming, and people cutting discretionary spending, and you also have picked euro valuation story as well. you are correct it you can pick anything, but it is all parish. jonathan: we'll have to wait for the other streaming empties, haven't we? i keep referring back to the investment letter, and i encourage everyone to read it. every single excuse under the sun is in there, but they break it down into four points. the second point, we didn't touch. in addition to the 200,000 households, netflix is being shared with over 100 million additional households. tom: a digital friel -- freelance. jonathan: that is where the effort is now. tom: this is the digital fantasy. what guys mike michael nathanson or -- they have doubted this model since day one. i find it fascinating, john, that zapf love is out with hulu, cnn, whatever that merger, hbo max.

ever's, and they have 56% debt. it is less netflix, and more what amount does this morning. what hulu and cnn do this morning, etc.. they go to a modern age of entertainment. jonathan: the pies not getting better. what will they do on content? tom: what will they do on capitalization as well? i am a bloomberg looking for brief cash flow ratios. some that have been used -- they are not even priced for netflix. they are profitability, given some adjustments, as a fiction. it is always that way. jonathan: let's go to mark, a senior investor. how much of a game changer is it to the invest mitts in big tech? -- investments in big tech? margaret: we are nearing a pause

as far as ingressive -- aggressive rate increases. that is where the market went off the rail yesterday. the economy looks good, but on the other hand, it is not ingressive because the market had not moved up because it did not work for them. tom: i look at where we are now, and we have to readjust it can you buy bills, notes, bonds, as bank of america suggested this morning? can you actually go in with confidence and acquire fixed income? >> i think treasury is more of a trading opportunity. but when you look at high-yield, that actually looks pretty attractive for the income only oriented investment. the average yield is 5.5 to 7%. prices are now at a discount with $.95 on the dollar. there is room to capital appreciation. most of fort lee, defaults will be under 1% this year and next year according to the rating agencies. that means you get to keep all

of that extra yield. that looks like a good bargain to me. jonathan: based on what we priced on the front end, are these fully price? margaret: i think it looks pretty appropriate. we can if -- expect the fed to try to shorten. they will be talking more aggressively than what they actually do. the fed -- it is not like they are a precision machine and they know what is going to happen. with each change in the dialer changing rates, they will be cautious and we will see a slow increase, and it will not have much of a negative effect on the market. jonathan: thank you as always. from all spring global investments, looking at what is happening on the bond market. two brief stories. the real yield and 10 year treasury, and netflix getting absently hammered, and as you'd expect, lisa, this morning, the southside coming with their tail between their legs and cutting the price target. they can america cutting netflix to underperform, a price target

of 300. jp morgan cutting the stock to neutral, 300. again and again come you see a stream of it. lisa: netflix shares are down more than 70% since november. just to give you a sense of how big this decline has really been. jonathan: that seems to be the favored round number. wells fargo is equally weighing the price target -- 300. teachers are about positive on the s&p. nasdaq is -.1% grid it is tesla's turn after the closing bell, little bit later from new york city. good morning to you all, alongside tom keene and lisa abramowicz, i am jonathan ferro. as seen on tv, this is bloomberg surveillance.

>> inflation has become a clear and present danger for many countries. even prior to the war, it surged on the back of soaring commodity prices and society balances, and war related disruptions amplified those pressures. jonathan: that was the imf chief economist. from york city, good morning. equities are shaking up, and the s&p is essentially unchanged. the nasdaq is slightly down. down by .1%. that is the equity market. we will get to that in a moment. the treasury market is big -- we are down by seven basis points to 2.8686. it may be the stock of the day, maybe the month it netflix, getting hammered by more than

40%. in the premarket, look at this. we are down 27.21%. 253.76. the first quarter is projecting much more pain into q2. tom: it is not something we usually do, but the tick by tick at 4:00 as they continue to go south, does it not? jonathan: it gets worse, not better. that is the trajectory for the year for the company. tom: for people who have been netflix skeptics over the air like michael nathanson and the rest of the southside, it has just been a genius. jonathan: equity just --. tom: scary, scary. there is so much news flow on new -- ukraine, and the linkage back to washington. i mentioned the contribution that america is making in the military effort to ukraine is externally. jeff fitzpatrick is in washington, and in helsinki,

distant from eve, and we start with maria. i look at finland, and the reality is that helsinki has a reality. it is forgery miles from the northern finnish border to a modest submarine base of russia. how threatened is russia by that 800 miles from their soft shop to the finnish border? maria: i think it is the number one threat for the finish. if you asked them, they will tell you it is a problem now. we have seen that for a country that is not a member of nato, that is not under the umbrella, the clear umbrella, we find ourselves at a country with one member of parliament telling me is an aggressor, and it does not have a problem using aggressive force on neighbors, and it could potentially be a threat. for the finish, it is a big threat, and they are moving. that is the reason we are here. they are moving forward with an

application to nato. this is a watershed moment. this is undoing decades of foreign policy in the nordic. they are saying they want to enter the allies. in many ways, we are talking about the real-life implications. we will look at this. it is real time in history that is happening. tom: what does brussels do to assist finland? maria: i think it is more than a brussels question, because remember, they are a member of the european union, and they have the euro, they are fully aligned with many of the progressive values in the european union, as they stand for. the issue is nato. the prime minister of the country says they want to settle this question with weeks. by june, there is a very important nato summit that is scheduled to take place, and in madrid. they want this formal application to go ahead. next to sweden, to the two countries that have applied the same time. this is more of a question of nato, and if they will accept them. the idea is that they will. again, you see that.

there will be a lot more military deployment now in countries that border russia. the question is, how is russia going to retaliate when it comes to this, and they say, for them it is not good news, they are ready to take actions. what kind, it is unclear. lisa: there is a question about the red lines, jack. when it comes to some of the battles that are currently underway. russia's making aggressive push into eastern ukraine. we've a sense of the consequences if it falls? if the region false russia? jack: the consequences -- those events would not necessarily change our stance or the european stance, necessarily. when you see a country like finland joining nato or the utah can closely with the united states about sanctions, they are already pretty much held pedal -- pedal to the metal against

russia. the outline questions would be, can you get china or india to pull away? is there anything else they can do to further enforce sanctions, but the level of concern would not change in the united states or presumably in western europe, or europe, based on the change that russia has made focus on the east. maria: to pick up on something you said, we heard from a chinese official overnight, reaffirming their partnership with moscow. what is the potential consequence that the united states is prepared to go after with respect to china, not just russia? should it continue to be a close ally of that nation? jack: the president has said there would be consequences if we provided material support to russia. that came from the vice minister in china. it seemed to be words of reassurance to china -- russia,

even expanding their diplomatic relationship. but it was not quite military aid, or something along those lines. it raises the question, to what extent is trade between china and an economic relationship pushing the envelope, and to what extent does that gets what the president warned him about -- them about? that is a statement that does not give a real concrete pushback from the night states, that it is the kind of thing that the resident has warned china about. jonathan: i different story, but forgive me for moment. where are we in this saga from the administration? are -- what are they doing? jack: the department of justice has said that they could appeal the federal ruling that blocked the travel mask requirement if the cdc decides that they want to keep that mask requirement. the cdc had been considering whether it was necessary, and

apparently, they did not quite realize that the doj be waiting on them. there is an interagency waiting. to decide exactly how they want to go about this. they seem to basically he caught off guard. tom: that is where we are, 24/7. you know. jonathan: there is confusion at the airports around this, tom. people don't know what to do. maria: are there massing europe? are there mask still in planes in europe? maria: it depends where you go. not on the ground. jonathan: brief, but that is what we needed there. thank you. lisa: are there massing europe? jonathan: i believe there are masks in europe. the confusion is huge, still. tom: i had a cabdriver throw me out about cap in paris because i did not have a mass. i did not have one on but i had

one in my pocket. jonathan: did you try that in your? tom: no trouble in new york. they really don't. now that i think about it. jonathan: there you go. from new york city, this is bloomberg.

jonathan: coming off the back of a decent day of gains on the s&p 500, we are basically flat, up by .07%. the s&p 500 is down .1%. we heard from netflix. we will hear from netflix. but look at this move by netflix. we are down and, we are down hard. this is what you have to send a letter to investors. basically, you tell them that you are no longer a growth stock. if you are looking for 2.5 million subscribers and you deliver 200,000, and the market is losing -- looking for 2.5 million some scrubbers this quarter, you tell them we are going to get -2 million, this is down 27%, and coming into yesterday's print, this stock was down by more than 40%. cue the south side.

cutting the target. that is the equity market and bond market. we are looking at eight valuation story. equities driven by slightly positive real yield, briefly. the 10-year is down by seven basis points to 28686. the team is suggesting that now is the time to get in on the 10 year treasuries with a target of 225, and they believe the inflation panic, if you call it that, their words, not mine, that is what would allow long and yields to come lower through the back end of the year. that is for the next several months. tom: we'll have to see what it is. ems given a move on weaker yen. let's jump to stephen roach at that yale university and jackson institute of global affairs. accidental conflict is a new effort to --. i want to celebrate right now how you, more than anyone i know, was out front on the fed

that looks at interest rates, a fed that looks at employment, and you said this is a fed that has to look at the acid buildup -- asset buildup in the economic experiment. what we are trying to do now is shrink the asset buildup. do we have any history, model, or theory that explains to us what quantitative tightening in whatever form it is, will be? stephen: the fed is an uncharted territory in terms of providing stimulus at the zero bound, or and interminably long. of time. it is a promise to get away from that, but so far we have seen 25 basis points of that promise. the tapering you allude to is coming up again. an external early high level. every time they try to do that in the past, markets have had a tantrum, or some other adverse

reaction, and it sets the fed up for having a very difficult time in weeding the u.s. economy and the financial markets off of the frothy asset markets that they have created. that is a big challenge. tom: the world economic outlook points out the history of taper tantrum and the testing of yield dynamics in that. i want to go to what you weaned at morgan stanley -- let's not forget the back end of the gdp equation, which is trade growth. imf says that trade growth is slowing, for any number of reasons, including tourism. 21, 22, 23 -- it is diminishing. are we near global recession? >> we are not there now, but the dynamic of a recession in the face of central-bank normalization, this inflation

shocked that everyone is convinced -- jonathan just cited some bank report that is absolutely convinced that it will vanish into thin air by the end of the air. maybe it will, but the odds are, it probably won't. you add to that, the strategic shocks that are playing out on our screens in real time. the world economy is facing some real serious challenges, and it comes in with a strong post covid rebound cushion. as we see in china, that cushion could disappear very quickly. lisa: have you been subscribe -- surprised by the dollar strength? stephen: yes. putting it mildly, this is one of those great lessons. i should have gathered this when i first mentioned the idea that the dollar would fall. you should never make a currency forecast. i was invited -- advised of that

i alan greenspan a decade ago, so i am prepared to eat as much pro as you want to feed me. lisa: that wasn't the intent of the question be at my question is, how do you come up with a forecast? how does the fed operate in not only really circumstances, but conflicts that you read about in this book that is coming up. the idea that how does the fed arranges self and is forecast around forecast that have unexpected impact on inflation? stephen: it is a classic risk management exercise. for forecasters, the way to balance risks and assign some probabilities to it, and try to be objective in weaning through it, and remember what your mandate is. your mandate is price stability and full employment. the fed does not have to worry about the labor market at this point, but it may in some point in the future. it is behind the curve on

inflation in a way that it has never been before. i look at the real federal funds rate, which are just the benchmark policy rate for inflation, or deeper --. we are deeper in negative territory than any point in history. including in the early 70's, and the early 80's, which of course bookend the great inflation. the fed has miles to go on normalization, let alone putting some restraint into its policy, if it needs to do that, to cool off inflation even more. lisa: a lot of people are saying , bank of america included, if the fed is aggressive in getting more aggressive, it will end up in the same scenario before we started the pandemic. basically, the dynamic of the demographic getting older, and not necessarily as much productivity, it will lead inflation to where it was. why do you push back on that -- how high do you think rates will

go if you do agree with this call with bank of america? stephen: it is bank of america. one of my favorite banks. i think the inflation dynamic right now is one that far surpassed the fed expectations, most market expectations, and certainly mind, even though i was very negative on inflation a couple of years ago. the idea that the forward-looking fed can count on a return to pre-covid sub 2% inflation in the face of supply chain disruptions, geostrategic uncertainty, a dynamic that is now afflicted wage pressure, but it is possible. if you want to counter that,

best case? tom: you invented it out of thin air. you're the first guy i know who everyone used a pdf file to do economics, and you and dick bove nurse set up in morgan stanley, set up a raging debate, and there is no one else who has made the dollar call. you have called for a weak dollar. it has not happen. when is it happening? stephen: it may never happen. my old currency strategists colleague had this great image of a dollar smile. i am sure he is smiling at me right now and trying to weasel my way out of --. tom: i don't mean to interrupt, but this is important. we have a resilient dollar, and most of us have gotten this wrong. at some point, the dollar breaks. what will be the event that we need to watch for where we see

the dollar break? stephen: personally, i think the dynamic is still there, in terms of the current account, the domestic savings rate. they are all pointing to dollar weakness. they have not played out in a. of geostrategic uncertainty, and if we ever get through this war, once we are on the others of geostrategic uncertainty, the dollar fundamentals will reassert themselves. it will not be the end of the world. not the demise of the dollar, the status is the reserve currency. but the dollar has three major corrections since the early 1970's, and they are big ones. the average close to 30% on a trade-weighted basis. each time, they have been triggered by either inflation, geostrategic uncertainty, or some other type of financial event that afflicts the world,

but the u.s. is a little bit worse than the rest of the world. there was a possibility, and i would not rule it out. we are setting ourselves up for dollar weakness, whether that is set up actually getting triggered -- that remains to be seen. jonathan: great to hear from you, as always. the u.s. dollar has tripped up a lot of smart people. tom: what's fascinating, is when we get a new louver accord, it is another excuse to visit paris for the team. you can go to the louvre. while the louvre -- we will have the louvre accord number two. this is important for wall street. we have these once-in-a-lifetime events getting a way that allowed for the dollar resiliency as mark mccormick talked about yesterday. give david bloom, d.c.. jonathan: not my position to advocate for bank of america, but i will quote them. forecast of inflation or peeking and falling steadily into 2023.

not exactly vanishing into thin air. we believe this will reduce the panic level around inflation and cause panic levels to decline. that is the story, lisa. lisa: on one side of the market, to use your words, you have people who are saying the fed is not being aggressive a love -- enough. and then others are saying it will get above 2%, and terms of the fed funds rates. jonathan: that's what makes this job interesting sometimes, right? lisa: every day. jonathan: down to 2.86 86. in the equity market we are down .1%. and netflix is getting hammered. it is down hard in the premarket. we are lower by about 25, 20 six, and 27%. this is bloomberg. >> keeping you up-to-date with news around the world with first word. we have learned about eight small but growing number of insiders who are quietly

questioning vladimir putin's decision to go to war. they believe it was a catastrophic mistake that will leave the country setback for years. there is no chance the russian president will change course, and no prospect for any chance for him at home. in shanghai, businesses from carmakers to supermarkets are quietly resuming operations in the midst of a massive lockdown. any factories are restarting by using a closed system. they're working on site to undergo regular testing. two thirds of shanghai's 25 million residents are still look lockdown. elon musk has given a fresh field for twitter shutters. he tweeted a message with a blank space and the phrase is that right? it could be asked out for cheryl. twitter has yet to make a formal response to elon musk's takeover proposal, but it has adopted a poison pill provision to defend against it. the logic -- largest hedge fund

is voting to replace warren buffett as she chairperson of berkshire hathaway. has about 2.3 billion dollars in brookshire shares. there backing another large shareholder who is called for an independent share. buffett is also the ceo who opposes that proposal. global news, between for hours a day, powered by more than 2700 journalist and analyst and more than 120 countries. i am a reporter at bloomberg.

>> if you are a high-risk person, yes, there is always going to be a covid-19 risk, and you have to think about wearing

masks and high-risk situations bid i do not think airplanes themselves are a high-risk situation, because of the number of changes that occur. but remember, masking works. jonathan: the johns hopkins health security. futures are up about .1%. the nasdaq 100 is down .1%. market yields are lower by about seven or eight basis points. 2.86. netflix is down 20%. tom: 27%, but who's counting question --? jonathan: vladimir putin is sitting a supervisory board of the government. tom: we don't know of the young sailors on the boat that went down in the black sea. we have had a media tour, while you were gone. mr. pruden -- putin with a cosmic drone. he is in a large room with some people who are socially distance

from him. not too far away. john, there are a bunch of kids here asking questions. i am absently fascinated by this media campaign, amid war. jonathan: you've asked the right question. we don't know what is going on. do they know what is going on? within russia, do they know? tom: i would respectfully suggest that the power of media is x percent no, etc.. on radio, we are zooming now. we are moving onto masks and such, but mr. pruden, we will continue to monitor those headlines. with john's hopkins university, someone who is been of a huge value to us is joining us this morning. what is the science of cdc or mr. biden saying wait a minute, we went to appeal this process to put masks back on our faces? forget about the politics of it. what is the science of putting

masks on her face? ritika: the science is very clear. masks prevent the transmission of covid. they are going up in cases. we know that covid deaths are not going up. the question is, do we still need masks? is it a necessary caution? it is all about science, but also weighing the whisks and the benefit -- risks in the benefits . jonathan: there was this statement -- they've gone on to call it a manageable respiratory virus. what are we going to call it as we get away from what this was a couple of years ago? jonathan: probably not a seasonal virus because we don't need to establish a seasonal pattern. it is not a seasonal virus. it is definitely a respiratory virus. it will cause some deaths. we still have an average of 450 deaths per day.

that is not an on sizable amount. it is a potentially fatal respiratory virus. we have effective treatments for. lisa: have we gotten back to a place were we can talk about the common flu and covid in tandem when it comes to the mortality rate? bhakti: i think we are getting there, to be honest. this is not the same playing field it was a year ago. we have a high proportion of individuals who are vaccinated, and a high proportion of individuals who have alpha, beta, omicron, delta. it gives us protection to severe illness. i think we are getting close. the deaths still seem high. under five is still vulnerable. once we cross those hurdles, we will be in a more comfortable position. lisa: when we start testing? bhakti: when we can ensure there is effective protection for all members of society. the reason we test is to have

early awareness of getting sick, and protecting those around us from getting covid-19. there are a lot of unknown still. we don't know folks who are immutable compromise or unvaccinated, how they fare with the current variant. we don't know the impact of covid, which could be substantial on a societal level if individuals cannot return back to the workforce. tom: what i've heard is a lot of people compare covid to the flu. if your number is 500,000, 460 -- 500, 400 deaths per day. let's say it is a hundred thousand deaths from covid in the next year versus 50,000 from the flu. do you suggest that we can say all clear, because 165 is going to come down and be flulike? bhakti: it is not about absolute deaths. it is about impact on society. when covid surges have happened, they crippled the health system,

meaning people cannot get routine surgeries, cancer treatments, they cannot go to the hospital if they have a heart attack. infection cripple society, and we cannot manage with it. it is not endemic. right now, we are coping with it, so it could be compared to the flu or cold because there are testing centers, vaccinations, there are rapid diagnoses available. it is manageable within our health system framework. jonathan: wonderful to get your thoughts, as always. from johns hopkins university. we'd love to stay on top of this, netflix down 27%. putting it all together, we have whitten's best witness coming up from growth to purgatory in an instant. candidate company have someone step in? we would argue, not yet. tom: this is craig moffett and michael nathanson. we reviewed the anr screen of the bloomberg terminal, which

shows the hope that is still out there. there is a growth enus to the adjusted price targets of netflix. how do you construct that this morning? jonathan: what seems tricky to me is that every single quarter i am looking at says $300 price targets. deutsche's bank cutting their targeted 3625. the price target goes to 300 bridwell's target -- 300. wells fargo's price target is 300. 300 is the new round number on the south side. tom: alsace 300 redye don't know. i guess it is about advertising revenue, blah blah blah. are they going to raise rates of the monthly netflix? jonathan: can they do that? if people are counting, because of inflation, what they have to do is caching. lisa: your kids are glued to netflix. is that what they're doing when i am not home? what they are going to say it is

a cash flow story and not a growth story. to your point, when you switch to that, given the fact that you are looking at trying to capture some of those subscribers. jonathan: sharing is a massive problem. i am back to this massive note. i will give you her number, in addition to 200 million households. deathless is being shared with 100 million additional households. they acknowledge that this is not a new story. they say this in the water. it becomes a new problem, if you cannot find growth. at least, if you cannot find growth. lisa: this is underscoring some of the comments of a 180 on their strategy. they said they could raise prices without losing subscribers. they said they were not going to turn to advertising. they have flipped all of those things on their heads. jonathan: final word. tom: you have been using mice of scripture for years. everyone in the house has to get their own subscription. that's not going to fly. jonathan: let's see what they

do. not in the household, but perhaps if you share with one of the kids in another state. tom: there's a lot of that going on. i don't even know who's on my subscription. jonathan: futures are up. from new york, this is bloomberg.

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>> a lot of investors are bracing themselves ahead of this big fed move. >> to what extent does consumption start to d accelerate, or from a post? >> what the fed needs to do is tighten conditions, and they have not done that? >> it is undoubted that we are seeing a slowdown in economic activity and the fed pressing hard on the brakes. >> at some point, they will have to judge between accepting a recession, or embracing stagflation. >> this is bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. jonathan: live from new york city, for our audience worldwide. good morning. this is bloomberg surveillance on tv and radio alongside tom keene and lisa abramowicz. i am jonathan ferro. teachers are positive on the s&p. netflix stock is down by 27%. tom: it's not just down, it is the way it is down. they have not found