green on the screen when it comes to the stock market and that is not the only story. some strong earnings coming out of meda. can apple and amazon. the theme after the bell? we will stick with the currency story because the bloomberg dollar index is the strongest in 20 years. the dollar strength really waiting on the yen weakness. is the weakness going to continue? that's borrows what we are concerned about. -- that spiral is what we are concerned about. bloomberg intelligence is without. some monster numbers. a complete turn around story from last quarter. a lot of it is driven by instagram. talk about the role that instagram plays.

andy: instagram is clearly the driver of half of meta's revenue . the monetization is still in the early stages. they should have renamed the company insta instead of meta. kriti: you read my mind on the name change. a lot of warnings coming out from these players. when we heard from meta last quarter. a lot of these tiktok videos end up on instagram. is that going to play to their benefit? mandeep: look at the kind of videos people consume on into graham -- consume on instagram. they are shared on instagram and then they show up on feeds. on tiktok or youtube, users are

creating those videos. there is a difference and that is where facebook is struggling to get users to create those videos natively on the platform. we have not seen that yet. kriti: there was a time when facebook was going to be the beginning of economic growth. -- the beacon of economic growth. has facebook lost that reputation? mandeep: right now, this year you will probably see at best high single digit growth in the market. if advertisers have to pare back their spending, they will cut back on the facebook or the pinterest channels because of google because it is still the channel when it comes to spending. kriti: thank you so much.

stocks hit session highs. amazon, apple reporting after the bell, bloomberg intelligence joins us. is there a trade-off in the work here between the success of amazon web services and the success of amazon e-commerce? >> in the near term, absolutely. we will see growth for online sales and that is not a surprise. we have been seeing it across the board as latest q2 last year. the estimate of sales online were 7% but it will contain its strength at over 45% and that trend could persist for the rest of the year. longer-term, we see online sales accelerating in the double-digit range and ews to maintain. kriti: i feel like amazon is a tech company but they have been building their shipping and logistics company more, supporting e-commerce around the world. to what extent are they turning

into a logistics business? poonam: they are a logistics business. amazon has one of the best logistics systems. soon they will be branching that out hopefully to other businesses that can leverage the system to really drive forward e-commerce gains. logistics is important. rising costs across fuel, labor is one of the biggest pain points in retail and e-commerce and having that logistics arm is a benefit to them. kriti: do those partnerships with other e-commerce companies ultimately eat into their own business? poonam: if they are using them as a performance center, it should not matter. amazon is another platform they can use to fulfill their online business orders. kriti: poonam goyal, always welcome knowledge on bloomberg intelligence. we thank you so much. amazon reporting after the bell. apple as well.

joining us now is da davidson senior research analyst tom forte. thank you so much for joining us. we will start with the apple question. one of tim cook's legacies has in securing the supply chain -- has been securing the supply chain. stocks are sensitive to what is going on in china. can the supply chains stay strong? can apple whether the storm? tom: what they were looking for in that regard was $6 billion. a $6 billion sales laws on supply chain related challenges -- sales loss challenges -- on supply chain related challenges. it is hard to envision that number is becoming lower both in the march quarter and the june quarter. this will be a sustained challenge for apple. kriti: outside of the big banks on wall street, apple is the

biggest cash folder out of all of the s&p 500 companies. what does it do with that cash? tom: historically they have been buying back shares. i expect them to continue to do that. to a lesser extent, they have initiated a dividend. their dividend yields are modest, close to 1%. historically apple has not been big on m&a. they are not doing a lot of $1 billion transactions. do i think it will be same old, same old, buybacks versus dividends versus the use of cash for apple. kriti: there is a stat out there that the average i feel user replaces their iphone approximately every four years but in an environment where there is a lot of talk about recession, about inflation, demand disruption, is iphone demand under attack? tom: that is a great question. what may make this cycle you need -- cycle unique is the

upgrade to the 5g network. there may be some challenges on discretionary income but consumers may still spend a just important amount on their iphones. they may scale back on apparel, travel, things of that nature. once a higher-speed network, apple would be more than ok. kriti: let's talk about their services business. it was not so long in 2020 when the market would tank on the idea of apple store closures, the idea that it would be a proxy for foot traffic and mobility data. is that the case? tom: it is less of a case when you think about their sales, 50% online, 50% of the retail stores. they have done an amazing job at the retail stores including introducing new, successful products. the apple has been successful. the story in my mind is still on the iphone, the 5g upgrade cycle

, and while the retail stores have done well, perhaps they are not the bellwether for foot traffic that they once were. kriti: apple, one of the largest inverstigators on the s&p five -- one of the largest best gainers on the s&p 500. i am curious about the ripple effect. how worried should we be about china when it comes to supply chain's? tom: it is a big concern which is why i mentioned the 6 billion figure over the second quarter and that will be the first thing they will report tonight. apple has done an amazing job managing their china-related risk. they have not slowed down as far as shipments of new products. it is still a big risk to the company. kriti: at the end of the day, apple is a luxury company. americans probably have iphones, but that is not the case for the rest of the world. should apple be concerned about the glowing business of samsung? tom: yes and no.

i think people have a talk about this notion of apple as a subscription. you think about that for music, for tv plus, but i think over time you will see apple as this subscription, meaning you are paying apple $50 a month, getting apple tv, apple music, and an i feel -- an iphone. historically, they have not done great in some of the emergency -- emerging-markets. perhaps it will be apple as an subscription. kriti: i am happy you brought up apple tv plus. we heard from netflix subscribers. is apple going to go down the same path? tom: you think about how koda won the best picture for an ott service and it was apple's movie and not netflix's movie. i think it is having some impact on netflix's growth.

it will end up having more of an impact. for apple tv, this is still an early-stage effort for them, a growing business. do i think it per team to the challenges you are seeing? they are not applicable to apple right now. kriti: tom forte, truly welcome knowledge on the tech space. as we have seen apple, facebook, amazon, the three companies we just spoke about, the biggest index contributors and the biggest gainers in the s&p 500. let's go to first word news with mark crumpton. mark: president biden blames the first construction of the u.s. economy in 2020 on technical factors. mr. biden says employment, consumer spending, and remain strong. the commerce department reports gross domestic fell at a 1.4% annualized rate in the first quarter. republicans have seized the report, charting it shows that president biden is handling the country -- handing the country,

rather than leading the country into an economic recession. treasury secretary janet yellen mounted a full defense of the biden administration's 2021 spending package in the face of criticism that it helped to fuel the highest inflation in 40 years. sec. yellen: the recovery packages sought to protect against risk. they were not just tailored to address the median outcome. let me be clear, the risk in 2020 and 2021 was a downturn that could match the great depression. mark: secretary yellen help champion that american rescue plan that came on the heels of two major rescue packages totaling almost $3 trillion under president trump. the drought that choked off rivers and reservoirs in the rocky mountains and the california coast is threatening to string power grids this summer. all of this raising the specter

of blackouts and forcing the region to rely on more fossil fuels. the region faces a third straight year of drought. one of california's key water districts declaring an emergency this week, depleting outdoor water usage for at least 6 million people. if the food in drug meditation finalizes two proposed bans. the rules would prohibit tobacco manufacturers and retailers formed may getting -- from making cigars containing menthol flavors. it claims these products can make smoking harder to quit among young people and are disproportionately used by black americans and other minority groups. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg.

>> this is the currency market vigilantes coming for japan. >> it is the driving force. >> because of the different drills, it is weakening.

-- the differentials, it is weakening. >> i think that will be a cause for concern. >> the dollar-yen could push higher. >> the longer-term continues to point to 150. that is where this is going. >> it is impossible to control the yen. the risk premium has to go up everywhere when you are seeing these types of moves. kriti: this is "bloomberg markets." i am kriti gupta. weakness at the heart of today's trading story. the dollar strengthening to a two decade high against the yen. it is huge when it comes to the purchasing power for the japanese economy. japan is a major oil importer. what happens if not only does those oil contracts get larger, but the purchasing power gets weaker. how does this really work? how do you maintain an economy that is just now, after decades, getting that inflation target?

let's ring in bloomberg's michael mckee and erik nelson. erik, let me start with you. we are still a far cry way from the currency intervention. it is a currency intervention even logical right now? erik: you have to think about what is the bank of japan saying. what are they telling us? so far, they have been comfortable. i have been surprised. they will not get concerned until 135, probably 140. first they will ramp up the rhetoric. they will talk about intervention or discomfort. at some point, they will sound more serious about actual intervention. we do not start that conversation until above 140, closer to 145 or 150. kriti: michael, i am very

curious about what they can do here. this is a market that is treating $4 trillion per day. how can it help the weakness we are seeing right now? michael: it is very hard. you could get a one or two day reaction but it is hard to keep that in the markets unless something else is happening. there is a reason why they have moved away from currency intervention. the japanese have not done that in a decade. the u.s. has not bought yen since 1998. the currency is moving in the direction you want it to go. if it starts to strengthen or if economic prospects change in japan, it would make more sense because the profit is inclined to go with you. studies have shown the lasting effect of currency intervention is not very long and you spend a lot of money chasing your tail. you have to convince the markets that something is going to be

different. they are just pointing out the bank of japan is not doing that right now. they doubled down on yield curve control. if you will strengthen the yen, you will have interest rates go up and that is not going to happen if the bank of japan is pledging unlimited yield curve control. kriti: erik, square that with the idea of haven fund flows. if you start to see decelerating growth, does that mean people will buy morgan -- more yen? erik: the yen has not performed very well in these recent periods of concerns about global growth. what is different this time around is the fed is getting more hawkish and that is a big driver of the risk off we have seen. if you have yields going up at the same time as risk aversion, typically we see risk aversion help the yen. we are seeing yields go the other way. this unique period of, even

though we are seeing some risk off and global growth concerns. u.s. gdp, through the noise, the u.s. consumer is in good shape. the only macro factor outside of the bank of japan that is going to turn the yen around his china. if you see a much more significant weakening in chinese demand, more recession returns, a downward spiral in chinese equities, and global growth and global equities, then you can see in verse. until we get that, dollar-yen will continue to move higher. kriti: the idea of interest rate differentials because japan is not the only country dealing with this. in fact, we are looking at a 105 handle on the euro getting closer to parity. the ecb is in the similar boat as the boj. michael: the ecb is in a tougher

situation. the question of what they will do about energy and whether they will keep paying russia, they are very close to recession right now. if they do go into recession, we do not want to raise interest rates. germany just hit the height inflation rate it has had, a common measurement of inflation was put in place in the 1990's. what do we do? that is a tough one. they may stick their toe in and raise rates little bit. since they are negative, they did not have to go positive yet. they will see what happens. u.s. will keep raising rates. the fed will do what it has to do for the united states. to go back to john conolly, he once said famously it is our dollar, but your problem. that is the way the rest of the world looks at it right now. kriti: erik, your take on the euro? erik: if we get there, it will be more of a grind.

i look back to 5, 7 years ago, positioning was much more stretched. not the case this time the round and we will start to see more calls for parity over the next couple of weeks and months. kriti: bloomberg's michael mckee , erik nelson, thank you both for your time. still ahead, caterpillar warning, weaker demand from china as lockdowns continue. the stock lowers even as we remain at session highs the s&p 500. that conversation next. this is bloomberg.

kriti: this is "bloomberg markets." now to something that caught my eye. one of the biggest on the s&p 500 as it hovers near session highs is caterpillar shares after it missed their earnings on weaker demand. this is a major issue as we talk

about the chinese property sector and what kind of ripple effects it has to a construction equipment maker like caterpillar. the cfo is anticipating global demand to overcome those chinese headwinds saying, "the good news is demand is so strong elsewhere that any impact that china enables us will allow us to supply other customers around the world." despite the weakness of china, some very strong words coming from the caterpillar cfo. this is something we heard from

going into amazon earnings. just because you have one weaker region, the other businesses can offset that. the question is does slower growth in those regions end up creating a little bit of a barrier? that seems to be the case for caterpillar today. as we talk about the data, the s&p 500 near session highs. this is a really important story, especially as we talk about tech earnings. apple, amazon, this is supposed to be the week that makes her break the s&p 500 after three weeks of consecutive declines on the nasdaq. is this the week that tickets rescued -- that tech gets rescued? we have to talk about the currency story. dollar stronger. yields have continuously been higher. the hawkish federal reserve story still driving the conversation even when it comes to the commodity picture. all the action in the fx space. coming up, more insight on today's gdp report as the u.s. economy posts a surprise contraction. our guest, dana peterson, is coming. this is bloomberg.

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>> i'm mark.

three billion dollars for military, economic, and humanitarian aid for ukraine including $5 billion in so-called drawdown authority that allows the president to provide weapons from existing u.s. military stockpiles. >> we need the bill to support the ukrainian fight for freedom. our nato allies and united nations partners will pay their fair share of the cost as well. we have to do this. mark: the proposal would give the u.s. new authority to seize and sell the assets of wealthy russians, allowing the government to use the proceeds date ukraine. germany has started preparations for a potential halt in russian gas deliveries as concerns intensified amid a dispute over payment terms. today the german chancellor olaf scholz said preparations to limit germany's exposure to russian energy imports were underway even before president

vladimir putin ordered the invasion of ukraine. meanwhile, european commission president ursula von der leyen is warning companies not to bend it to russian demand to pay for gas in rubles. gazprom turned off the tabs to poland and bulgaria in dramatic escalation that made good on a threat is rubles were not used for payment. lawyers for accused new york city subway shooter frank james say the fbi may have violated his constitutional rights when agents took a dna sample without first informing james. the fbi had a warrant. james'lawyers say they were not notified ahead of the time about the sampling so they were not present when it occurred. authorities had already taken one sample the day he was arrested. this one took place 13 days after he had been booked. the national archives plans to deliver another batch of white house records to the congressional committee investigating the january 6 20

21 insurrection at the u.s. capitol and former president trump's role in the events. president biden declined this months to uphold mr. trump's claims of executive privilege on this latest batch of documents, the contents of which have not been made public. global news 20 four hours a day on air and on bloomberg quicktake powered by more than 20 seven hundred journalists and analysts in over one hundred 20 countries. but mark confident --crumpton and this is bloomberg. >> i'm jon erlichman and welcome to bloomberg markets. >> i'm kriti gupta the market closes close to session highs. it's a big bounce back on wednesday and it even bigger

bounce back today. a lot of this has to do with earnings. tech is moving the market higher. the dollar/yen story is significant. continued strength in the dollar and weakness in the yen. how much further can we go? >> it is an important point. the bulls versus bears battle during earnings season. there have been enough winning stories today whether it is meant, qualcomm putting chip concerns today, mask regards speaking to the health of the consumer. we have seen caterpillar under pressure. one of the weaker performers in the dow due to china concerns. even on that the stock is off its lowest levels of the session. >> outside of earnings in the u.s. gdp number caught investor attention. the economy is shrinking for the first time since 2020. listen to the reaction from wall

street and the white house. >> when we look at the gdp numbers, the question is, what do we determine about the future of the economy? you had nearly a four percentage point reduction from net exports. going forward i think over the next two quarters, this tells you that the economy is growing strong. >> when we think about growth we are back on their -- on our way to a normal gdp number as time goes on. to me there is nothing here that is surprising. >> we wanted it to be slightly positive. we were surprised to see it so negative but a lot of that was due to a drag in exports and inventory and that makes us less concerned about u.s. growth itself. while it's not a great number we think it is more of a blip on the radar. >> you can never make too much of one data point, one quarter. i was not surprised. i talked to many ceos last quarter who were bulking up on inventory. so, we all expected this quarter would be a bit slower. again, even if that were not the

case i do not think one quarter makes a trend. >> for some context on the gdp report let's get perspective from dana peterson, chief economist at the conference board. it's always nice to have you with us. a collection of voices is waiting in there. how did you interpret the numbers today? >> well, we thought the headlines were disappointing but when you dig beneath the surface you find that is everyone just said, it was really about exports and inventory building. even with inventory building we added one hundred 53 billion dollars --one hundred $53 billion worth of inventory. that's really outsized. trade was up 18 points -- percentage point. domestic demand continues strong. we saw that in consumption and investment numbers. in exports there is still some weakness and -- in demand

external to the u.s.. >> it is the export/import picture that catches my eye here. we are looking at a dollar so strong that it is the strongest in 20 years. at the same time, when the u.s. is really poised to perhaps add to a lot of the gaps in exports or commodities coming off of the war in ukraine, oil, food, defense, how does the dollar story square with the export story? >> i think the dollar story, the fact that it is so strong is a negative for other economies that may want to purchase u.s. goods. some economies, especially emerging markets are still trying to fully recover from the pandemic. europe is pretty much almost there but then, you have these massive supply chain disruptions. that is feeding through the exports for the u.s. as well. >> i want to talk as well about the u.s. consumer as we prepare for the decision on rates by the

u.s. federal reserve. at one point does the inflationary reality coupled with the impacts of higher rates eventually have on the u.s. consumer start to weigh against the spending strength of americans? >> we would imagine that certainly by the summertime, the middle of this year, we start to see certainly in the second half, consumer spending come off of -- as interest rates will be higher already. we see some flow in housings as mortgage rates have picked up and consumers are concerned about not only rising interest rates but higher inflation. so we think that will affect consumption later this year. within our forecast we have consumption averaging, you know, around 2% for this year. this would bring overall gdp down close to the three percent, maybe 2.5% this year. >> i love that you brought the consumer behavior portion.

in the financial round we talk about real wages. but the average american is checking their bank account and seeing a higher number. to what extent does the wealth affect offset demand reduction? >> as you said bank accounts are doing well. some people still have savings from the fiscal stimulus. balance sheets are in great shape. debt to income ratios are low. debt service is low. many people are working. so, -- and, their wages are rising so, they have income coming in as well as financial assets. with all of that, that will hold up consumer spending. we saw consumer spending quite robust in the first quarter. a big chunk was spending on durables as well as services and we want to see that rotation. second, third, fourth quarter the stored up income in savings

accounts as well as many people, most people, working will be important to help offset some of the inflationary pressures we are seeing. >> dana peterson chief economist at the conference board, it's always a pleasure. we look forward to having you back. let's stick to the subject of the economy and spending. u.s. treasury secretary janet yellen mounted a defense today of the biden administration's 2021 spending package in the face of criticism that it helped fuel the highest inflation in 40 years. >> the recovery package is to protect, not just tailored to address the medium outcome. the tail risk in 2020 and 2021 was a downturn that could have matched the great depression.

>> this is bloomberg markets. i'm kriti gupta with jon erlichman. the latest data shows people eager to travel once again. airport checkpoints are nearly up to pre-pandemic levels. there are clearly still headwinds for the industry including jet fuel costs and labor shortages. what is really shocking to me is some of the stagnation. you have gone back to 2019 levels but it's not increasing. there is not more demand, just back to normal. airlines, hotels, how do they make up for lost time? >> that's a big question. to your point, as the cold canadian who just made his way down to orlando for the first time in a couple years, the

cross-border activity is picking up. we saw that in mastercard numbers today, visa with a theme of travel recovery. that has been alive and well as a market theme this week. >> that brings about the question about wealth. we were just talking to dana peterson about that. so many people in the market are pricing in demand destruction people are -- destruction. people are still spending. when are we looking for demand destruction to occur? it looks like it goes from a couple months to a couple years. >> the pricing we have seen on both sides of the border on the inflationary front, hotels, airline tickets, these are costs that are higher for consumers. so far this does feel like the one area that a lot of people have said, look, i have waited long enough to travel, i am willing to pay a higher price. >> that is boding well for a lot of folks in the travel industry. let's get more insight on that topic and recovery with michael

brad at the ceo of travel and leisure. estimates for the company in the first quarter includes more than 20 travel related bad -- france at more than two hundred 45 vacation club locations. thank you for coming onto the show. how much or any demand destruction are you expecting and on what timeframe? >> when we look at what has happened over the last two years, and john said it very well, consumers have been anxious to get back on the road. with the pressures that happened with omicron, february, march, and even april have been an extremely strong recovery, you mentioned it's back to 2019 levels. i think especially in north america with the summer season coming i would not expect a softening of leisure demand throughout the summer. i think it will be extremely strong for months. that's four months. we will see with the macro environment looks like post

summer but at this stage the consumer is saying, i will get on vacation and enjoy my free time despite the pressures out there. >> clearly there is attraction for people to get back out. there is also a question about attracting people back to your industry. it's been a complicated couple years for employees. one of the things that you talked about on your earnings call was the idea of investing in people. if the labor market is tight and you want to ensure your hard-working team for the long-term, investing in the team in the right way is key to business. can you elaborate on that? >> well, one of the fundamental changes we made during covid was we started to reinvent our business and we chose to go after a more efficient margin driven business. when that is the case, it requires less in a very tight labor market. so, we are seeing about 50 percent increase in what we call volume per gas.

-- per guest. out of every guest we are seeing more revenue. accordingly, the people we are attracting are earning more than they ever have. we are seeing more of clients being more efficient and selling more. so it works out well for the employee, the consumer, and, in a tart -- tight labor market it has allowed us to retain talent. in the hospitality industry there is no greater asset than people. >> mike, a big theme we are hearing from a lot of tech companies and other companies as well is it simply the change in demographics. facebook, meta, alphabet, are all talking about this idea of how you really retain millennial attention. in the travel space a lot of millennials are perhaps looking to more exotic locations, airbnb's, hanging out with locals. how do you address that demographic? >> let's start with looking at

our demographics. 30 percent of new purchasers are millennials. 40% are gen xers. that is a younger and younger demographic. but you are right. the rate of change in the hospitality sector is very rapid and our investments have been digital efforts and continually evolving product offerings to consumers. because in the end they do want to experience it. that is one of the reasons that just 12 months ago, 14 months now, we went out and purchased travel and leisure so we could tie editorial content to activated vacations. so when you read the magazine and see an exotic location you want to be at, instead of opening 12 internet tabs you can click directly to our product and purchase that exact vacation that the expert writer has told us all about. with ease, with one stop shop, and with great value.

>> coming back to the higher cost, obviously, mike, there is strong pent-up demand. at what point, whether it is your business or the industry, does it get more challenging to pass on higher cost? let's make the assumption that the inflation story we have been watching does not get resolved anytime soon. >> well, i think it is a tale of two stories. you look at the hotel industry. every night they reflect supply and demand and rewrite their prices and pass on the costs directly to consumers. i think as inflation stays high and persists, this may become a serious issue after the summer. in our industry, 80% of our owners have already fully purchased their vacation. so, every time a hotel rate increases the value of our products grows. because it has already been paid for. this is one of the reason our performance in the first quarter and our expectation for the second quarter is so strong.

because our consumers and our type of product, vacation ownership, is as valuable as it has ever been in an inflationary time. so i think that we have a nice installation against inflation. but i think we -- it is fair to say that none of us want to long and persistent high inflation. >> i think you are in the consensus when it comes to that call. michael brown, ceo of this travel and leisure company. we appreciate you joining our show as always. cash at session highs up 2.4% largely driven by tech. you have a lot of dollar strength and muted volatility in the commodity space. risk on seems to be the name of the game. we will talk more about that next. this is bloomberg.

i

rating. jon: this gives us to -- gets us

to earnings. ford is in focus today. the top line number is beating estimates. the wholesale shipments for the company are down about 9% from last year. they have navigated the chip shortages. the company cfo john lawler spoke with us earlier about the issues plus a big push into the electric vehicle world. have a listen. john: our early reservation and orders are highly skewed towards california and the east coast absolutely. one other thing to point out. we do have high-end pickup trucks in the price ranges you have talked about. we also have the starting series around 40 thousand dollars. we have made the vehicle affordable for our commercial customers and those that would want to enter into it at an entry-level series.

>> what is the torque issue? this is a little bit engineering away from the financial side. people are saying this thing cannot pull like other electric vehicles. you are in the meetings with your engineering degrees. help us with that. >> this truck is fully capable. it is built ford tough. it has all of the capabilities you need in a pickup truck, the horsepower, the payload, and it does have the towing. we feel very confident that this truck will meet customer needs. and it will represent ford tough as we have for many years with rf -- our avenue series. -- f series. kriti: supply chain issues were weighing on some of your automobiles in the first quarter. going forward, you maintain your guidance even though you have seen production fall short of

where you were expecting. how can that be? john: well if you look at the first quarter we had incredible demand for our product. all of our new products, in fact. the bronco, the broncos sport, the new maverick and our electric vehicles. now the incredible f-150 lighting. we see incredibly strong demand for our products. in the first quarter we were disrupted by the chip crisis. we do see the availability of chips improving through the second half. we are seeing great traction on our ford plus brand. so improving chips, great traction on ford plus and increasing demand and a very high demand. we see volume up this year versus last year 10%, 15% and that affirms our guidance of 11.5 or 12.5 adjusted ebit for

the year. we have taken pricing this year. we are in an inflationary environment. the pricing we have taken is stuck and we will continue to manage that. you will probably see inflationary pressures continue and commodity prices continue to increase. you will see additional price increases. we are also focused on cost. in an inflationary environment you have to manage both ends. we are laser focused on increasing productivity and driving efficiency through every line item. kriti: lots of company news to digest. we will have it all on bloomberg tv and bloomberg radio. stocks at session highs and the dollar at the highest in 20 years. with jon erlichman, i am kriti gupta.

mark: here is the first word. i'm mark crumpton. cities across china are rolling

out swift measures from mass testing to lockdowns for a mere handful of coronavirus cases trying to keep flareups at bay and avoid the hardships endured by shanghai. china's lockdown is inhibiting global supply chain progress. >> the headwinds that have came up are obviously the pandemic and the pandemic effect in china. shanghai has been locked down for almost 50 days now. the longer that goes on the harder it cuts into the supply chain. mark: china's swift action to contain the virus reflects the growing stakes local governments face in wrestling with the highly infectious omicron steering. --strain. today biden and congress provide 33 dollars of economic and humanitarian aid to ukraine, giving the