>> growth joseph -- doesn't drive inflation. >> i think that is what we are seeing, is been officials trying to find what that restrictive point is. >> it is a very pessimistic environment doesn't provide support for the market. >> companies are in a really good place. >> there is still momentum in u.s. economy. >> this is "bloomberg surveillance." jonathan: live from new york city, for our audience group -- audience worldwide, good morning, good morning. this is "bloomberg surveillance." here is your bounce back from an ugly session yesterday. the nasdaq up 1%. tom: it is really moving, and it is a some of the parts thing. it is massively correlated to the volatility you see in the yield, to what we see in the foreign exchange market. brent crude, 105, but how do you

get the crystal ball out? we are learning on these earnings calls whether something like a can of soda pop or it is something serious like google and all they do, do we have any forward guidance? jonathan: if they offer forward guidance they certainly have a lot of uncertainty around it right now. we do too. if i can guarantee 50 basis points next week, after that another 50 basis points. the ecb, i cannot guarantee you anything. tom: i think we have moved on from the gaming of the fed out one meeting, two meetings, to the complete mystery of the then walked into the early autumn. with big earnings tomorrow maybe we right the ship with amazon and that other company, but for the most part there is no forward guidance except poland and bulgaria are shocked this morning. jonathan: that other company being apple tomorrow. tom: thank you. i forgot. jonathan: lisa, that is the news

out of europe. poland and bulgaria taking this on the chin today. gas supplies from russia cut off. lisa: basically it seems like a new phase in the conflict. the question in my mind is, how much will this eventually goose gas prices, and what impact will the european slowdown have on the global economy? we saw that in earnings results yesterday. we talk about google. that was one of the soft spots, european advertising. jonathan: texas instruments as well. throw in china. if you are the ecb, you are at the center of that. what do you do this summer? lisa: honestly, what she does, how is that going to affect the euro? if she raises rates, is that going to weaken the euro further? jonathan: we have had this recent euro weakness, sterling weakness, yen weakness. tom: in full disclosure it helps

to have a bloomberg terminal, because he triangulate -- and i triangulate about standard deviation moves. sterling is there, it has blown through two standard deviations. yen is perfectly placed at a 130 to be a weakening two standard deviations. the euro is almost there right now. we are sort of getting to that they are of it a week out. jonathan: dxy right now at 1.02. the s&p up .8%. and nasdaq up by .3%. yesterday, which was brutal on the nasdaq, pushing four percentage points lower on the session. on the month, down 12%. lisa, on the year down 20%. lisa: just amazing. especially given the fact those losses continued after the bell. we see them heading into the open, particularly alphabet, as everyone says.

today we are watching european unions coordination -- gas coordination group. they're going to talk about some coordinated effort. i'm curious to see how much noise there is made about the number of buyers who have already submitted payments to russia in rubles as gas prices off the highs as we saw at the peak of the conflict, however heading upwards. get march pending home sales. i'm curious to see how much they slow down. as the fed curtailing some of the momentum with mortgage prices at the highest level going back to 2010? yesterday we saw prices climb at the fastest pace going back more than two decades. that might start coming down if the sales start slowing. at the market facebook reporting earnings. there are 170 seven s&p companies reporting earnings this week. this is the busiest week for q1 earnings, and it has been mixed. that is what i am watching. the nasdaq is down 20%, but as

andrew slimmon said, he sees another 9% decline potentially in the s&p, led by those tech stocks as people reassess the global macro backdrop. jonathan: it was a phrase that came up repeatedly yesterday. there is a lot of uncertainty in the macro environment. mary barra of gm saying, we did this even in the face of a challenging macro environment. that is the theme of the moment. tom: for mary barra we could have a two hour conversation. and we have to touch on mr. musk and his folly during we have -- this is hugely important, particularly given tech. denise chisholm is out of the economics combine, means you have to privilege of bodie on finance. that is a good and beautiful thing to have under your belt she holds court at fidelity investments. his director of quantitative market strategy. i love your note, and i want to

go to will dan off and contra fund. if i go to the bloomberg and look at a fun with a 91 r squared, i see that will dan off any company have 43% in tech semi conductors. we over-owned technology right now? denise: i think that is relative to an index, so obviously technology is a huge weight in the s&p 500, and even bigger in the growth index. i do think technology is a bit in the crosshairs, and not for the reason investors expect, which is there is going to be a problem with growth. but i think the bigger issue is for the first time in a decade technology is expensive on relative pe. this is really the first time since 2005, 2006 since we have been in that top quartile range. it is the opposite of what happened in the pandemic during the pandemic was when technology

are performed it was by about 30%. the technology sector actually got cheaper because earnings growth on a relative basis wasn't so strong versus the market. we are in the exact opposite position today, as opposed to being autumn quartile coming out of the pandemic. now we are top quartile and the sector, despite the underperformance, actually got more expensive on a relative basis in the last quarter. lisa: this is important. you are saying what is driving the weakness is the fed hiking story, not necessarily macro weakness, is that correct? denise: it is the relative valuation. it is the starting point. it is correlated to macro factors. there are certainly times when you see macro factors get linked up to valuation, if you look at them together what you will see is relative regulation is almost more of an impact than macro factors.

investors have to make less of a macro called and look at the odds of outperformance from valuation. lisa: based on that look, how much more does big tech have to fall? simply based on what is big into the market with fed rate hikes? denise: in some ways it depends on earnings at the end of the day, and this could be a long process. it doesn't have to go down by a lot, it may not outperform for a sustained period of time. on the other of the ledger is what is happening in value stocks is strange. value stocks are always cheaper than the market, if you measure them in terms of how many standard deviations they cheaper versus the market, what you will see is we are pinned to the 90th percentile. this is rare for coming out of an economic recovery. what you see is the counter opposite you saw coming out of the great financial crisis when value did not lead. and it is similar to the 2000s's when value diddly. that relative valuation disconnect may be more of a driver than what we are thinking, which might mean value

versus growth is a much more long-winded, long-lived trade. maybe a couple of years, versus what white be a knee-jerk reaction to rotate into value quickly and back into growth. jonathan: denise, thank you. denise chisholm at fidelity investments on a tough month of april. we have talked about the performance in the nasdaq 100. the s&p is down 7.8% this month. lisa, you have to go back to march 2020 for a month that back. lisa: everyone has been talking about how earnings will save the market. there have been a lot of strong earnings, however there have enough notes of week is to undermine that since there is confidence in the momentum, and i think that is what is most important to pay attention to. jonathan: i'm surprised we are performed in europe. stoxx 600 is only down 4%. i would expect it to be down more than that based on what has been taking place.

speaking of banks. the banks have been terrible. let's be clear about that. the earnings have done little to stabilize things. year-to-date jp morgan is down 20% this year, tom. tom: i think i have said this, but i'm going to formally say it now. when in doubt, cut costs. that is what i would look for into the summer. jonathan: you are expecting job cuts? tom: i'm not smart enough to know if it is job cuts. i will leave that to michael mayo and other people. ken lay on, that gives us such help on bank earnings. the uncertainty there is absolutely untenable for any financial organization, and you right-sized expenses with a vengeance. jonathan: a ton of uncertainty around europe. euro-dollar briefly with a 1.05 handle. right now, euro-dollar 1.06. the kremlin responding to the story that bulgaria and poland have had the russian gas cut off by russia. the kremlin saying the gascon

office to poland and bulgaria are not black male. they refer to themselves as a reliable energy supplier. tom: the backdrop is the brent crude. could you imagine this discussion if we break out $120? in terms of the time continuum, i would digress over to the agony of netflix or week or two ago, and what we have heard from warner bros. discovery. everything is getting split up in terms of synergies, and i wonder if you are going to see that at the banks. and, frankly, and other sectors as well. jonathan: synergies. you hate that word. what does it really mean to kate? tom: cut costs. jonathan: in a big way. on tv and radio, this is bloomberg. ♪ lisa: keeping you up-to-date

with the first word, i'm lisa matteo. it is a major escalation in the standoff between russia and europe over energy supplies. moscow will cut off the floor of natural gas to poland and bulgaria. it is making going on a threat to halt gas flows to countries that refuse the new demand to pay for the fuel in rubles. european gas prices rose more than 20%. xi jinping is calling for an all-out effort to boost infrastructure construction. it is beijing's latest attempt to rich -- to rescue economic growth, but the strategy may prove less effective because of lockdowns to get the coronavirus under control. the world's richest person cannot afford many days like tuesday. elon musk's stake in tesla pond -- plunged by $32 million. investors gave their verdict by sending shares of tesla down 12%. musk has pledged some of his

tesla stake to secure the deal. norway is tops when it comes to normalizing life alongside the coronavirus, while hong kong and mainland china are among the worst. norway is followed by ireland and the uae for places where the pandemic is being handled the best. u.s. fell six spots to number 23. the u.k. is down two spots to number 12. both due to the number of fatalities. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm lisa matteo. this is bloomberg. ♪

>> i'm concerned about the repeated reports of violations of international and humanitarian rights law and possible war crimes. and they require independent investigation for effective accountability. jonathan: that was antonio guterres, united nations secretary general. with futures positive .7% on the s&p and the nasdaq up .6%, the moves fading a little bit. i will keep an eye on that after the ugly close yesterday on the nasdaq 100. looking at the euro, 1.0 five briefly. this conversation about russia cutting off gas supplies to poland and bulgaria, and the kremlin saying no rubles, no gas. we are reporting the -- that four european gas buyers have

made payments to russia. end buyers have opened up ruble accounts. tom, the next payments are due in may. want to be interesting to see what is happening here. need to work out what is going to happen. tom: there is four ways to look at ruble. there is the basket, de la rue ruble, and you are ruble. it is remarkable the strength of ruble versus what has been a weak euro. do your reading of those headlines, what is a buyer? jonathan: is it a country, a company? tom: i don't know. jonathan: i'm -- i don't have the detail on this and a lot of it does not make sense to me. tom: i think so. for clarity, what do we do? talk to annmarie hordern, our washington correspondent. then all of your work in london, what does brussels do? what does brussels respond to this specific news of poland and bulgaria? annmarie: they are having a meeting today. we heard from ursula von der

leyen -- i guess it is a first step. she is calling it black male, on what they are doing. what we see is putin using energy as politics. putin never lets a good crisis go to waste, and that is precisely what he is doing. he is getting ahead of it. you look at the europeans talking about sanctions, coal they were able to do, now there is murmurs about oil, but they remain silent on natural gas. this was always going to be the most difficult. putin is getting ahead of them and making good on his threat that he has been making for weeks, which is if you are not going to pay for these supplies in rubles we will start closing off the valves. jonathan: talk about this suppose in mechanism everybody had agreed on to keep everybody happy. what was that? annmarie: there was a mechanism potentially being discussed about oil at first. this was that if russia was going to be selling oil to european countries and they wanted to start to put sanctions

on it, maybe on the margins, maybe those funds would go into an escrow account. there is a mechanism potentially. we are hearing about four buyers and 10 companies who have set up accounts, which would be they would pay for it in a foreign country, then gazprom would be the one to change the transaction of those, then gazprom will get the rubles. this potentially is what these companies, or countries -- we are not sure who these four buyers are -- are doing. but basically this caves into putin's demand, because at the end of the day he is getting the rubles. lisa: how can europe really comply in any way, even in the way they are going to earlier through this complicated mechanism, even that he is forcing their hand? does this expedite any ban on russian oil and gas in the near

term? annmarie: already it is expediting it, because putin is making sure it is expedited, right? he is cutting off the taps for poland and bulgaria. the question looming over europe, especially germany, is who is next and what are we going to do? right now time is on europe's side in the sense we are getting to the summer months, they don't need as much natural gas, it has been a warm april, february, they have a lot of supplies right now. but putin is essentially getting ahead of what he knows is coming. these are critical months for europe to build up their storage, so they have enough gas when it is cold in october, november, december. this is going to be difficult, which means you are going to see tons of lng from the united states going to europe and other friendly countries. lisa: a lot of people are saying the u.s. is the swing producer, particularly of natural gas and you are seeing shipments climbed to record highs. much has the biden

administration supported that, spoken about how important that is to support national security globally? annmarie: they have spoken about this quite a lot, about how the united states is now this huge player in the lng market. you are seeing companies inc. these long-term contracts to europe. the issue is the united states alone cannot fill this hole. europe is enslaved to russian natural gas. also it is incredibly cheap. you have to send a tanker, let your -- liquefied natural gas, and go over to a terminal and europe, that is much more expensive than shipping it through a pipeline into europe. the administration has been working on this for months. basically, cutter, huge player, they have long-term contracts with a lot of asian supply buyers, like japan. and you have countries like japan sang, we are ok for a few months, we can forego some cargoes and send them over to europe.

you are already seeing that happening, but this is going to happen at a quicker pace. jonathan: policy in washington, we understand from reports that chuck schumer that with nancy pelosi on doing something about gas prices. it is in the works? annmarie: there is a few things the administration has already done, which is the ethanol play, the spr play, potentially there has been talk on a tax holiday for gas prices. the issue is, are they going to be able to get everyone on board? politically this is going to be difficult, because this is going to haunt them in november. jonathan: thank you. annmarie on the latest. this headline from germany. not impacted so far by the russian gas supplies hold. seemingly every country one by one saying if they are affected or unaffected. tells him earlier this hour, germany the latest, reiterating that payments will be made in euros or dollars. that is the line from germany this morning. lisa:, put it well.

when countries have to say they are not affected, you know things have gotten concerning. that is where we are at. the fact they are sticking to their guns about only paying in dollars and euros -- how much did they expose those buyers of gas that have paid in rubles? how much pressure is that the stop? jonathan: tom, euro/ruble, the ruble is the strongest against the euro going back to 2020. tk, i know a lot of people are saying that is not really a market, there is a lot of restrictions around it, but there is a move there to talk about. tom: the move is with the euro down through 1.06. these are all movable parts, and i'm going to say -- with a bloomberg terminal we can sell it -- market litmus paper right really matters. in all of these debates, including what we have not mentioned, which is the tangible challenges for china as well. jonathan: germany saying it is

following e.u. guidance on russia gas payments. whatever that means. we look for more headlines. tom: euros, i guess. jonathan: you would think, so why haven't they been cut off if poland and bulgaria have? tom: who knows? stay tuned. jonathan: the nasdaq up .3%. tom: cutting off the tanks. ♪

♪ jonathan: monster moves in the equity market over the last 24 hours. this move is fading, we are negative yesterday by a big amount. today, we are unchanged. we were up by one percentage point. amazon and apple tomorrow. microsoft doing nothing to help out this equity market this morning. the s&p was up 1%, now just one third of 1%. down 20% on the year. tom, just over the last couple minutes, a story starting to build, breaking news from the new york times. tom: this goes back to rk goes

-- archegos. a huge deal for new york city. mr. hwang is in some form of arrest. what is so important is this guy's past. he has left a trail of debris over a decade, met with julian robinson, the hedge fund 15 years ago, and i'm reading this quickly. $44 million settlement to the sec in 2012, band run trading in hong kong in 2014. this is a guy who is used to these allegations. jonathan: slowly getting the details of the charges. lisa: he was arrested overnight along with his former top

lieutenant, charged with racketeering, securities fraud, and wire fraud. this was in march of 2021 where he reportedly lost $20 billion in 10 days. that inflicted huge losses on new moraga, credit suisse. now we are seeing it is an illegal spot right now. jonathan: the story coming from the new york times and elsewhere. lisa mentioned credit suisse. the banks are not getting enough attention. big tech is reporting, but look out for the banks. in the premarket, doing ok. on the year so far, we are looking at losses of 20% for some of these names. here is the story in europe. euro-dollar briefly with a 105 handle. look at the difference about what is happening with treasury yields on the front end, and

what is happening with germany. there is a conversation about a european slow down, absolute confusion about what the ecb will do with that. tom: in their choice set is totally different from the fed. it's about being totally data dependent. key data dependency is your currency. could you imagine this debate if dxy, 1.04. jordan rogers yesterday said if you pop 1.05, how quickly do you get to 1.00? jonathan: weaker euro, sterling. dxy pushing 1.03. used to be a goal, no longer an objective. lisa: especially as you are

dealing with the inflation. and gas issues. jonathan: some breaking news as well, we can get some single names with kriti gupta. kriti: as you look at russia halting some of those flows into poland and bulgaria and potentially the rest of europe, you are seeing big moves in natural gas futures. eqt, the largest producer in the u.s., rising. can they make the gap up from ukraine, the conflict going on in eastern europe? the other big story are the tech earnings. and nasdaq 100 futures are not down, they are up. microsoft soaring, up 4%. they have a massive cloud business. alphabet, on the other hand,

down 4.6% in the premarket. this has to do with the european market and youtube viewers being lost to tiktok. i don't know anything about tiktok. lisa is on top of it, unlike the rest of us. meta, one name that you want to watch after the bell. how much will ad revenue begin issue? twitter down this morning, which means tesla is up. the inverse correlation between those two stocks is something you want to watch. texas instruments down after the supply chain concerns in china. tom: i don't want to be inflammatory on this, we are closer than two days ago, but the idea of five, even sevenish,

it is out there for mr. musk. we are continuing to watch the archegos, federal actions against mr. hwang. right now, importantly, tom tzitzouris joins us from strategic us. i love your basic idea of still hovering, guessing how long and dense this inflation will be. how far out into 2022 do we? tom: i think we hover around this 8.5, nine percent level until the may print in june. that is because essentially the events in eastern europe have pushed peak inflation out by another quarter. that was more likely to have happened in january, now may or

june. beyond june, we should see inflation trickled over to a five, 5.5%, which is roughly where wages are printing right now. if the fed would do nothing, that is where we believe we would begin to stall out by the second half of the year. lisa: let's say that that doesn't even have to go as far as some think. can yields go higher simply because the weakness in the yen, euro, the fact that foreign buyers will have a harder time buying u.s. debt on a currency adjusted basis? tom: we believe yields can go higher. the 10-year, we are looking at three to three" or. the problem is, to get to three and 3.25, you need to have a lot of short-sellers come in, and that is unstable. when you see 10's start to peek

out, you have rabbit reversals lower. we had one overnight in japanese trading hours last week, and then they reverse rapidly lower. we think 10s can push higher from this level but we are getting close to that ceiling that is close to 3, 3 .25. lisa: will you be big buyers of duration? tom: right now we have a duration underway in the funds that we manage. we've been talking to our clients about closing their own generation gaps. i wouldn't become a long-duration buyer unless we get above the .25. we peaked at around 3.27 in 2019. we could get above that on oversold conditions, let's say 3.30 and above, i would be a buyer of duration. i don't see the fed peeking this cycle above 3.50. tom: dovetail this into jason

traynor's blend of stock selection, equity enthusiasm, and the macro call. how do you two speak together? tom: we have a growth beginning to stall, operating margin happening because of the inflation picture. because we have 10 year yields possibly another 50 basis points higher, you are looking at equity contractions on multiples. you are looking at a weaker equity market. the bond guys saying this, but i would argue we have another 5% downside on the s&p when you put those factors together. that is also consistent with another 5% downward trend in the treasury. we would be looking at equity weakness for the rest of the year on these factors alone, higher inflation, lower earnings margin, lower price multiple.

jonathan: i get uncomfortable when equity guys start talking about bonds. good to catch up. tom: we are always bearish on equities. jonathan: i know. we have one of them with tom. monday through friday. lisa: it is exciting. it is edifying when people come on and say this is normal. jonathan: i'm a bomb guy, but let me tell you about equities, i know what you are going to say. you all remember bill hwang. here is the latest from the new york times. mr. hwang and his former top lieutenant were arrested at their homes, are expected to appear in a manhattan court today. the arrests were announced by manhattan federal prosecutors. prosecutors said the men were charged with racketeering,

conspiracy, conspiracy fraud, wire fraud and a scheme to manipulate the prices of publicly traded stocks in order to boost returns. they said the plan relied heavily on leverage, help pump up the firm's portfolio from one point 5 billion to $35 billion in a single year. tom: it is not correct to speculate on this, but what we can say, with the alleged leverage that party a did not know what party b was doing, did not know what parties he was doing. did he affect that they did not know what the other parties were doing? jonathan: the new york times leading that reporting this morning. futures fade on the nasdaq, briefly unchanged. they were up much more than that early on. the s&p up 0.4%. from new york, this is

bloomberg. ♪ >> keeping you up-to-date with news from around the world. i'm lisa matteo. natural gas prices in europe jumped 20% after russia made good on a threat to hot gas flows to poland and bulgaria. it will keep the supplies turned up until they agree to pay for the fuel in rubles. the european union called the move blackmail. in china, size that authorities are starting to bring two coronavirus on bricks under control. shang how -- shanghai hinted that lockdown measures may be eased as cases have stabilized. spacex has launched for astronauts to the international space station. the first crude equally made up of men and women. it includes a first black woman. they will arrive at the space

station 16 hours after lunch. spotify paid subscriber forecast fell short of estimates following a strong start to the year. neil young and other artists pulled their music from spotify. they claimed joe rogan's showroom was spreading misinformation about the pandemic. 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'm lisa matteo. this is bloomberg.

>> within tech on a year-to-year basis the last three or four months, it is actually value

factors that are outperforming. i look at the bloomberg factors on a day-to-day basis and there is that value dominance even in a sector like tech. jonathan: we put that in because we love liz and saunders and also the promo. futures up half a percent on the s&p. the nasdaq up a third of 1%. facebook after the close, tomorrow, amazon and apple. right now, bowing with an almost 2 million-dollar miss on revenue. that stock is down in the premarket. tom: i looked at it yesterday and the chart is like no man's land, there is no trend. jonathan: not pretty this morning. take your excuses for the reason. tom: maybe just sitting on the runway. jonathan: have some complaints that you want to share? tom: joining us right now is the best and brightest of bloomberg intelligence.

anti-rag rhonda joins us -- anu rag rana joins us. do you separate facebook from the rest of these giants? anurag: these others have massive moats around their businesses. nobody can really compete with them. meta is all about the flavor of the month. it is just a different business model. tom: i did my chart from the moment of the pandemic and how they have performed. why is apple substantially outperforming microsoft, google, amazon over two years? anurag: because of the pandemic there was a lot of game download, services got through, but people have started to realize the importance of the installed base. the ecosystem they have is so rich and valuable, even if you

cannot sell iphones in one year, it will come back the year after. they have an installed base of about 8 million iphones, 1.8 million connected devices. that ecosystem drives a lot of other services. long-term, advertising, media, all of those things help margins. lisa: have you been surprised by the pain, the ramifications of the shutdown that have been reflected in the earnings in tech? anurag: not surprised because we have seen it happen once. it was not logical that you would not expect it. when apple reports, i expect similar commentary about not available parts for some of their products, which means product sales are push for another quarter. the question you have to ask is can somebody give up their iphone or apple product for something else? i don't think so. that is the most important part

of the apple story. lisa: i want to talk about the cloud side of things. google posted a bigger loss than people expected. this sort of shocked me when people talk about the cloud being supreme, microsoft coming out with better-than-expected earnings on that front. what do you make of that? is the azure dominance getting so big it is hard to break in? anurag: google will be a strong number three, and that will always be the case. i was a bit surprised on microsoft's numbers on the cloud. only a modest deceleration in the next quarter, which is unbelievable. close to 50% growth again going into the next quarter. this bodes well really well for aws. tom: we have to go back to the basic question i always ask because it is something that i don't understand, don't think the public understands. the size of the universe of these companies, your timeline

out to where that universe becomes full, we are out two or three years. you are out a decade? tom: the way i think about it is, the moat for these businesses are getting stronger day by day. the old fallacy was they are hitting a trillion in market cap, they cannot go any bigger. i don't think that will happen anymore. tom: we spoke to fidelity. a contra fund is a lot like the index, ex-semiconductors. 40% of his portfolio is computer, technology. what percent is that going to be in six years, 60%? anurag: if he is allowed to, that is probably going to be the case. tom: at this moment right now, is apple under owned because

lawyers are saying you cannot buy anymore apple? anurag: it could be the case. one of the things that we examined is, apple is buying back so much stock every year. over the last five years they reduced their share count by 23%. tom: is that a good thing? anurag: it is a good thing if you are buying at a reasonable price. they are going to spend $90 million buying back stock every year. tom: this is critical, folks. are they redux thing ibm 15 years ago? is this an equivalent? anurag: this is different. there was so much competition from ibm, company to take their share. there is no other company that can take your iphone only and replace it with something else.

how much would it take you to your iphone away? jonathan: great to catch up. anurag from bloomberg intelligence. the share count of apple is down 20% over the past five years. how many people talked about the $70 billion buyback from alphabet yesterday? tom: they haven't. what is important is the implied january 1 dividend. these are big numbers, 8% sometimes. jonathan: facebook later, amazon and apple tomorrow. breaking news in the last 40 minutes. archegos capital management founder bill hwang and his chief officer facing violations. remember archegos? the authorities said mr. hwang used archegos as an instrument of market manipulation and fraud. the alleged fraud claims to have

artificially inflated the portfolio from $1.5 billion to $35 billion in one year. those are the allegations. tom: we will have to see. greg farrell talks about hubris and the fall of merrill lynch. will he leave by the next book with the same title? jonathan: he is a part of the legal enforcement team here at bloomberg. he will join us. we will talk about how some of these allegations may be difficult to prove. lisa: there are so many wide tentacles that this reached. the $20 billion in losses torpedo the earnings of credit suisse, number. it was a huge story last year. you wonder who else will be affected in some of these allegations? jonathan: greg farrell coming up in the next hour. good morning.

the balance fades on the s&p. on the nasdaq 100, up just 0.1%. this is bloomberg. ♪

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>> what is happening now is such a supply chain stock, you are this inflation come through. >> this is a commodity negative shock. >> it is really more a story for 2023. >> the slowdown in growth will be very impactful, especially a country like china. >> if we have a slowdown in china, definitely bad news for us. >> this is bloomberg surveillance with tom keene, jonathan ferro, lisa abramowicz. tom: an interesting day has become a very busy day,