mark: welcome, this is first word news. the u.s. senate postpone final passage of a $40 billion ukraine a package after republican senator rand paul refused to allow the vote. he is demanding lawmakers at a provision to appoint an official with oversight powers for the aid. the senate is now expected to vote on the matter next week. frank james, the man accused of opening fire on a rush-hour new york city sub right our last month pleaded not guilty to terrorism and gun charges.

the 62-year-old is accused of firing a glock handgun more than 30 times inside a packed rockland subway car on april 12. there were no fatalities but 10 people were shot and 13 received other injuries in the ensuing panic. the biden administration is ramping up pressure on china over what it calls horrific abuses of predominantly uighurs and other ethnic minorities. is the biggest tension between the two countries. the state department says it will leverage its resources to combat forced labor in china's shing gyre region. global news 24 hours a day, powered by more than 2700 journalists and analysts. i'm mark crumpton, this is bloomberg.

ritika: you are seeing a fast and furious rebound up to two 13% and the vix is down below that norm. a reversal from the four days we so with yields lower. jonathan: when you look at the various components of the s&p 500, you seem buying across the board jon: with names like zoom rallying 10% and some of the recovery plays up more than 12% and industrials with boeing moving higher. we are seeing strong performance

so let's bring in abigail doolittle who has been tracking the markets on this ride a. we still have a ways to go to make up for the damage done earlier this week to make it a positive week but we were sitting here yesterday and at that point, the s&p 500 was on the doorstop of a bear market. abigail: it's interesting to see how the tip buyers of come in and in spite of this, even as you had stocks going down over the verse of the week, the most important thing that's moving the vix, it has stayed relatively constrained. while the s&p 500 has been very careful, the vix state below 40 and was lower than the recent highs, suggesting there wasn't as much fear but the s&p 500 had its worst month in april so it took time to convince investors to get in more. the other incentive was you have

deals down on the week. investors were reacting to what we had earlier this week and they really did some serious buying on this friday. kriti: a monstrous rally and the nasdaq was up 4% what will it take for this rally to be sustainable? abigail: i think this is probably a bear market rally. things look bearish but it looks like we could go back up into a trend similar to what happened in march. we had the means stocks rallying like gamestop's and the height beta tech names taking off. investors looking for a near-term trade but in the longer term, there are not a lot of times that's the case. the s&p 500 was possibly at the

bottom and that can sometimes hold things still. kriti: abigail doolittle, thank you so much. let's go micro a little bit from the big macro rally because shares of twitter art plummeting after elon musk said his takeover of the company is on hold but he says he still committed to the acquisition step tesla is seeming to get some of the backhanded advantage of that twitter move. that potentially affects the s&p 500 and the macro moves are in focus. talk to us about the believability that this deal is going to go through. >> elon musk realizes he needs

more external funding so clearly, this is an attempt to draw more external investors to partner with him on the deal. given the current market conditions, he has probably overpaid. you look at snapchat trading in five-time sale so why is he paying seven times for an asset that is growing slower than those two companies. he can renegotiate the deal but i don't think he can walk away because of the disruption. jon: describing these developments as a circus show, what are you hearing from your contacts on how people feel behind the scenes on what has created some confusion in the market? >> one area of confusion is the idea about bots. elon musk tweeted that the deal was temporarily on hold after

they had a regulatory filing. they said that bots account for less than 5% of the user based on twitter and that language in the filing is not new, it's boilerplate that twitter uses time and yen stop meta, the parent company of facebook have -- has use that kind of language before. how does elon musk not know about this? surely he is in contact with management but there is -- but if there is one thing he has been consistent of doubt, -- consistent about, he doesn't like bots on the plat form and the volume relative to other users may or may not be new information but why bring that up now? it's hard to understand the timing. kriti: let's talk about the deal premium. they were down as much as $36 earlier in the session but even

before today's news, you saw this lack of convincing tone when it came to the way these shares traded. >> you are right, we are at $41 per share on twitter and the spread between the $54.20 and current share prices are widening and we use that as an indicator that wall street perception of whether this deal would happen or not, that's the spread you see on your screen. we are following these events in the market is assigning a 40% probability whether we have the trade or not. we need to remember what's been happening in the broader context of technology stocks. we have seen a massive selloff that twitter was not part of. one hypothesis is elon musk could be playing come back with the lower offer. jon: before we let you go, we

saw some key departures at twitter this week and in the market, the reaction in tesla six justin maybe those investors would prefer to see elon musk focusing on that. can you see this scenario and reports of whether he would step into run twitter on a short-term basis? >> i think he will be involved from the get go. are we going -- is he going to be the ceo? probably not. the more partners he gets on the deal, the chances are you have private equity players and other companies will help them out as far as running the day-to-day operations. jon: thanks very much. coming up, we will be talking about another market mover, crypto.

crypto maybe in chaos but cineplex is surging after reporting its earnings and we's oak to the ceo earlier this hour. >> it's great to get back and have that experience and we just came back from the movie conference and everyone is kept up about where things are going and we are back.

kriti: this is bloomberg markets. stocks are not the only thing rallying today with bit going up 5% but down 15% since last weekend.

s there was a lot of volatilitya this week in all parts o market. sanali: bitcoin is only up 3% over 24 hours bringing a seven day declined to almost 16. it's one of the most volatile weeks bitcoin has hadn't if you look at what happened, it's what bloomberg calls an uneasy calm. we are looking at the drop off and it's still continuing with other stable coins that have deep pegged to the dollar -- de-pegged. jon: we want to bring in early crypto adapter and investor dan moorehead, the former lawn trader. he is the ceo of pantera capital. this has been a wild week.

you had a few of those of your time in the crypto markets so where does this rank? >> it's right on the weighted average. there have been six-day cycles and crypto since we started 10 years ago and we are literally right on the average. having seen these cycles is we are pretty much done. the market will get going back up again. sanali: you guys were investor in anchor protocol. how are you being impacted by the move we have seen this week? >> we've been invested in several projects over the years, since 2020. we are investors so we buy things when we think they are cheap and we sell things and they have value.

kriti: you wrote a letter this month and you said this is the last time in history that bitcoin could be bought that cheaply. are you buying the dip? >> we think it's a great time to be long. most markets kind of cycle around and this is literally where it was when i started where is crypto may never see this price again. jon: let's dig deeper into the market dynamics. you made a reference to historical patterns with joe trading. last time you were with us in march, you were talking about the co-relation when you see stock market selling when the s&p 500 is under pressure and it's inevitable you will see crypto pressure. a very quick dip, he 30% slide for the s&p 500 and if you stretch it out and the bottom

earlier, the price of bitcoin came down about 50% step we were talking yesterday about how the s&p 500 was on the doorstep of an official bear move. the correction in crypto, we started to see last year and based on that measure, we had come down about 50%. how do you think crypto is trading when it compares to the stock market? >> i think that correlation has to break down soon. in the six downdrafts in the s&p 500 over the past 10 years, the relation has been try -- has been very tight. it's a much bigger impact on the s&p 500 so i think pretty soon, they will decouple. the driver is higher rates which is driving everything down but crypto doesn't feel an impact from rate so i think it will trade in other things like gold

or oil or commodities that aren't related to the market. abigail: sanali: sanali: you been pretty critical about the federal reserve policies and you called the bond market a ponzi scheme and you said the fed has manipulated the bond market. what you think the distortions will be for stock and bond investors? >> the fed ended up buying $6 trillion of bonds and mortgage-backed bonds and that is essentially funding people to buy a house. with mortgages at 2.5% and the case schiller index is going up 19.8%, the fed is telling you not to buy a house. it's a record amount of americans that took out mortgages last year. the wild thing is the fed did more than 100% of that lending

itself. it was a mortgage bank for the united states the last couple of years. investors did what is probably rational is borrow from the fed and going buy a house. it will take higher rates to break that. kriti: in a previous life, you are a goldman bond trader. it's a big consensus that the bond bull market we have come to know is coming to an end. what reverses that? >> there is no working person that has traded that arrives in this environment. kriti: you are speaking to a millennial. >> the next few years, rates will be rising and you can't see the fed stopping tightening to either the housing market rolls over or unemployment comes off would it hit an unhealthy low. unemployment hit an all-time

record low. we really are at an extreme moment. it should get resolved before the fed starts tightening. jon: just to circle back, maybe you start to see more of the trading aspects similar to gold, similar to the reality of dealing with the inflation and the higher rate environment for those trying to figure out why we saw such a crypto decline at a time when there was this high inflation in the first place, could you make a case that the weakness worked against the crypto argument of benefiting from this environment of uncertainty and inflation and higher interest rates? >> when the fed was printing trillions of dollars, it was easy to say that means crypto has to go up because the fixed want the thing. with the fed not printing

anymore money and quantitative tightening, there is an instinct this must be the reverse for crypto so it should go down. when investors look at their options on investment based stocks, bonds and real estate and commodities, they will come to the conclusion that the rates we'll head toward 5% in the u.s. and most of the other interest rates are not going to be good and they will want to put money into things like commodities, oil, bit point, blockchain assets. jon: good to get your perspective and thanks for joining us. coming up, we will get the possibility of finland and sweden joining nato. we will talk to a research fellow at the center for european policy -- policy studies. this is bloomberg. ♪

>> we provide a new impetus. i'm sure we will have a -- an agreement and we need this to have to get it. we have to get off of oil dependency from russia. jon: that was the eu foreign policy chief speaking to reporters today as some nations are considering delaying a push to ban russian oil. let's bring in the research fellow at the center for european policy studies. thanks very much for being with us. the other big development now is the fact that we have this deep dialogue and whether or not finland and sweden ultimately join nato. it's a very busy time and in the case of sweden, after such a long period of neutrality, we

will watch is very closely. >> this has historic implications which goes beyond ukraine and russia. it's more than 200 years of neutrality from sweden which does not share a border with russia. finland has a long border with russia. it's not unexpected that these countries came up with these decisions to join nato. we can observe there is a strong political will from nato from the recent statement from the secretary-general. nato member states and the united states are going to welcome the two countries in their upcoming applicant tatian step another thing is to really look practically at what it means for nato itself. we are speaking about two

countries which are militarily capable and finland already meets the rig choir meant in terms of defense expenditures. it spends 2% of gdp and it's a very well-trained country. sweden has an alternative who how is developing its reputation internationally. the troops are not that high in number but the countries have highly developed military equipment. expenditures are also coming to the nato commitment. in that respect, nato gains to more members, they will be highly capable members. jon: it is a lot to be watching closely. we appreciate your time.

thank you very much and we are looking at those stocks continuing to advance heading into the final stretch of a very rocky trading session stop we will continue to monitor the move on stocks higher as the -- after the big selloff earlier this week. this is bloomberg. ♪

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mark: giving you up-to-date with news around the world, here is the first word. i'm mark crumpton. finland came out in favor of applying to join nato and sweden could do the same within days in a historic realignment on the continent 2.5 months after russian president putin invaded ukraine which sent as seven -- a shiver of fear through neighbors. >> i have contact with my turkish colleagues, i have been visiting in the spring and i have an opportunity