interest rates. germany has signaled it would not oppose an embargo on russian oil. last night, russian missiles killed journalists in their home just as -- was visiting the ukrainian capital. odesa was also hit. the battle for donbas remains the russian focus. and advances have been slow in the face of ukrainian resistance. there' is virtuals meeting between president biden and -- to discuss the efforts to stem the flow of migrants to the southern u.s. border. this is ahead of the administration's plane to let title 42 expire. the order allowed migrants to be quickly expelled without hearing asylum claims. a senior administration official

says mr. biden is also hoping mexico will join in and opposing penalties on russia for a division of ukraine. u.s. government researchers are planning studies to determine how often and why coronavirus levels rebounded in some covid patients who have completed a five day course of pfizer's drug that has become a key element of the administration's pandemic approach. little is known about the rebound cases, including how frequently they occur and whether the highly transmissible omicron variant plays a role. a london judge sentenced boris becker to two and a half years in jail after finding him guilty of deliberately ignoring the terms of his bankruptcy agreement. the 310 when the is accused of deliberately and dishonestly putting funds out of reach of creditors. he declared bankruptcy in 2017. he was more than $50 million in

debt, blaming it on his divorce and "expensive lifestyle" commitments. 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 mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. >> is selling -- the selling is broad and it is coming off of earnings. this after two and a half percent gain yesterday in the s&p 500. take a look at our canadian neighbors. less of a selloff.

john: and the nasdaq 100 is nearing a 12% slide for the month overall, it could end up being the worst months since 2008. you have seen apple, amazon, alphabet kumutha on microsoft, tessa with market cap declines of more than $1 trillion. kriti: earlier, jeffries say ing >> nobody wants to buy anything in tech. it is not just amazon. klobuchar on microsoft, google, bulb hr on anything -- we have a buyers a buyers strike across wall street on software. kriti: apple shares sliding after saying that constraints would cost about $8 billion in revenue during the core incurred or -- current quarter. joining us is our apple reporter

out in los angeles. mark, thank you for joining us. i'm hearing one of the legacies of the ceo, tim cook, was really securing the supply chain. what happened? mark: he was defensive about his supply chain. he was asked on the earnings call yesterday, after the results, if apple needs to make tweaks to the supply chain in order to avoid issues. this is the third time in the last three years were apple has had a fundamental supply chain issue related to china, that has caused problems and delays. in 2019, they were blaming the situation in china for a slowdown in sales. obviously, the coronavirus, which nobody could have predicted, the supply chain issues from that. we have the chip shortage. now you have the shanghai closure is that is really impacting the final assembly.

what apple has been doing is that they have been moving final assembly to other parts of the world. some is now in india. there was a time they did final assembly in brazil. so they are trying things, but they do not have enough output outside of mainland china to produce at the iphone, ipad and watch in the volumes and that they need for global shipments. so what you will see them do over time, is they will create additional manufacturing facilities in more parts of the world to hedge bets for issues like this, and making a final assembly plants outside of china that could bring up the numbers of devices if necessary. john: that is helpful context. you have long covered this ecosystem around building these products. since they have a lot of know-how, and if they are having challenges, are there ripple effects? are they setting the table for other companies having challenging quarters ahead? what has been the broader industry reaction to this news?

mar apple isk usually an indicator on how the rest of the industry: first dibs on many manufacturing power and allocations, right? so the company that will get a lot of the attention from its supply chain, from partners, that tells you that amazon, facebook and other tech manufacturing companies in the world will also have issues, may be worse of than apple. john: we appreciate the breakdown. we will continue to watch of the apple story. and one of the other big technology companies we alluded to, amazon, acknowledging the hiring of warehouse building binge during the pandemic is catching up with them. the chief financial officer spoke about it and how the consumer is holding up amid the inflation reality. >> there is no indicators that we are seeing of weakness in consumer demand, but we are wary

of it, as probably all companies are, because household budgets are tightening. john: more reaction to what has been going on with amazon. our senior analyst covers at the company. as the numbers broke, you were doing helpful breakdowns of where we are in the evolution of this business, and all of this spending seems to be leaving investors wondering, not just about the bottom line, but also about if they are so big how much more can they grow? what has been your take away? >> it's been interesting. rightfully so, because online business is the bulk of their business, but not of the bulk of their business. you look at the online piece, they cited a $6 billion hit increase in costs in the second quarter. that is $2 billion in

warehousing and $2 billion in inflation. we think the inflation piece could continue for the remainder of the year because we do not see the costs going down anytime soon. on warehousing and labor, wages are going up, so there will still be pressure there. you think about where houses, although they are not building anymore where houses, at least until they reach capacity on the current ones, over time they should be able to achieve more leverage. now that will not happen overnight. it will take time, but cost pressures are something we are seeing across the board and we will see even in the upcoming earnings of other retailers like wayfair. kriti: amazon is not just e-commerce, it is a cloud and logistics company, as you pointed out yesterday. it's still there begin for consumer health -- beacon for consumer health, isn't it?

>> it is. and even though consumer spending is an indicator, we see him as on continuing to gain share. they guided to growing cells 3% to 7% next quarter, if you add back 400 basis points that could still mean double in the second quarter. so consumer spending is there. it's not a topline story that we are worried about, it's really the margins. kriti: thank you for joining us. now to tesla. elon musk has unloaded $4.5 billion worth of stock after saying he will be purchasing twitter. that mixes total disposal $8.5 billion since the deal. joining us is dana.

if you look at this from a company perspective, elon musk has purchased twitter, how will you find $21 billion -- fund $21 billion? i think everybody was expecting him to sell shares from tesla because of that, we saw a heavy trading on tuesday, wednesday and thursday, and now we know that he did sell so you are seeing tesla shares rebound because people feel like the worst is over. john: you alluded to this in your story, the fact that everybody is aware that elon musk has a job running tesla, he has a couple other jobs as well, now he is going after twitter. how sensitive are investors at the end of the day of how much time is going into the day-to-day of the business of tesla? >> it is twofold. so, on the bright side, i do not think elon would be pursuing

twitter now if tesla was in a bad place. they just had another record quarter, they have a strong bench of talent.. he feels tesla is going well. the give to electric vehicles is clear. every other auto company is scrambling to chase them. why not now diversify your interests? your main company is doing great. on the downside, there is not a clear number two at tesla, as there is at space x. and i think shareholders would want more insight into ok, who is the coo? you only have three named executives at tesla and people want a clear sense of who the number two is. john: thank you for your reporting, dana, with the latest on the tesla twitter connection. we are watching exxon mobil, chevron pledging to ramp up stock buybacks as oil and natural gas prices surge.

we will have the latest. this is bloomberg. ♪

kriti: this is "bloomberg markets." oil with a faith monthly gain. this comes after a volatile period from the fallout in the war in ukraine. you can see the streak of positive flows with oil. you can see the effects of the trade war, when you go back, but now it is an an inflation hedge, something of a sure thing. you can see that, even as we talk about the potential of lower growth in the world. jon: the idea of momentum. these charts tell the story.

we just talked about the tech wreck. right now, people are cautious about moving away from the energy trade, to your point, it has been a very valuable trade to investors over the last five months. kriti: there is an echo effect when it comes to the stock market and dollar. the flow on the commodities front, whether it is food or natural gas, let take a look's a look at the energy picture with regina may, kpmg international principal global head investor. we heard from major oil players this morning, massive profits in the last quarter, but at the end of the day there is caution in ramping up production, investing in that capex. at the same time, there is a narrative of transitory being a retired word, the idea that higher oil prices are here to stay. can they bring together those

ideas? regina: it is difficult to square the two ideas, but that is the double edged sword. the commodity price environment is one in which we typically would see a lot more investment going into buying and securing new supplies of crude oil and natural gas, but inflationary pressure on the supply side, with access to labor, the goods being more expensive, and the long-term movement away from hydrocarbon and fossil fuel investments and pressure they are getting from investors. so being an energy company ceo in today's world is a tough needle to thread in this environment. jon: fernando, as we take a look at the big profits for exxon mobil and chevron, investors have different perspectives and questions. we have seen that in canada with a major player, suncor, being the target of an activist investor in elliott.

what are the big questions of these giant players will have to answer outside of benefiting from the higher price of oil? fernando: i echo regina on inflation, so actually being able to deploy capital and for how long you are going to target growth on top of growth. i think that capital discipline had come into the equation prior to the pandemic, and now it is more important than ever. she talked about the energy transition being an important factor in these decisions. italy important is to mitigate emissions from the current production. and to do so in a way where you also recover your returns. how do you put more capital to work without hurting returns as you did in 2008 to 2014, where the inflation in equipment

really lead to a contraction in oil companies' returns and the triple digit oil prices? kriti: fernando, i want to know if you continue to see higher oil prices, an issue of production here, but you are talking about a lower growth output, especially from china, shouldn't that cancel out in some direction the idea of extreme demand on the one side but perhaps much less demand on the other side? fernando: it could, but the issue is when you look at inventory levels, especially on the refined product, we are low. diesel is a 15 year lows. that is important to the overall growth outlook for the world economy. spreads are over $70 at times this week. that's unimaginable in previous years, that is a 30 year high, so we need to rebuild inventories. there is a disconnect because we have close to $300 million --

300 million barrels a day and we will need to readdress that situation because we need to rebuild tha so wet do not lead to more consumer price inflation over the next several months from the diesel hike, for example. jon: to wrap it up, when all is said and done, given everything we have heard, where do oil prices go as we go through the rest of the year? regina: a lot of the specific challenges are supply. so the price not being higher than it is today is the fact that the iea is estimating that china's demand could come down by 40% with what we are seeing with covid, s that iso -- so giving us temporary relief. but with ukraine, that will probably last longer than others. and of the potential for russian barrels to come out of the market, a third of their

barrels, i think we have more upward pressure on long-term commodity prices than downward pressure, so i think the higher prices are here to stay likely through the rest of this year. jon: helpful context. thank you very much, regina and fernando. a great conversation on energy. coming up, we will hear from the intel ceo as the chip crunch continues to bog down parts of the global economy. and speaking of the crunch, earlier we spoke to the ceo of mercedes-benz to see how long he believes the shortage will last. >> the semiconductor shortages situation will continue in this year, 2022. in our discussions with our supply partners, it should start to ease in the second half of this year, but it certainly will be with us through the whole year and then 2023 should be at

a better level. ♪

jon: this is "bloomberg markets." for what it is worth, $18 billion, that is how much revenue intel is projecting for its second-quarter, but that is a number that falls short of expectations on wall street for a company that has been pledging to grab that market share. concerns as the company navigates big supply chain issues and a situation in china. the ceo spoke with us earlier. have a listen. patrick: we are getting positive news from china as ports open up, which has been challenging for all of the business going through their, a fair amount of our business as well.

overall, the big story is around building out semiconductor capacity. we thought that around 2023 we would see the equilibrium, now because of some of the equipment shortages, equipment that goes into the fans we are building, those leadtimes are pushing out. as a result, we expect the overall semiconductor shortage to not be resolved until 2024, a s capacities come online. that said, we feel like we are better positioned than most with the combination of our internal capacity, as well as our leverage of foundries. that is part of the structural advantage that intel has. and our execution machine is performing well and we are working closely with the equipment vendors to make sure that all new major factories we are building our smart capital, we fill them with capacity as demand signals emerge, and we feel like we will do better than the rest of the industry in are supply requirements. >> i know that you are bullish

on the pt market. what makes you think it will remain strong as we come out of the pandemic, given that we are facing inflation and ongoing war, rising gas prices and pressure on consumers, more so than we have seen in a long time? patrick: there is a variety of things. the range of the pc market outlooks was wide and now it is narrow. all of the analysts, stocks have reaffirmed this, it is a structurally larger market now. kriti: that was patrick gelsinger. a lot to talk about when we talk about supply chain issues. stocks are near session lows. for jon erlichman in toronto, i am kriti gupta in new york. this is bloomberg. ♪

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™

(announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo.

mark: keeping you up-to-date -- here's the first word. in a sworn affidavit,

former president trump says he's not aware of any records that should be handed over to new york state. authorities are probing potentially fraudulent asset valuations at his real estate company. the affidavit filed today as part of mr. trump's appeasement to a manhattan judge in contempt of court and fined him $10,000 they for willfully disobeying a court order to comply with the subpoena issued in december by new york attorney general letitia james. when eric adams ran for new york city mayor, he made a campaign promise to cut police overtime spending by half. instead, the nypd's budget for extra hours is on pace to store 73% above what was allotted according to the city's independent budget office. it says the nypd's projected to spend more than $750 million on overtime for fiscal 2022, which ends