>> stocks making a comeback. bloomberg markets star right now. kriti: a lot going on in the markets, hard to in one specific

driver. there is green on the screen. a 20% bear market we have hit on friday. some of that comes from the dollar weakness and that is the move that is catching my eye here. when you see a weaker dollar to the tune of .6%, guilt space up 60 basis points, what happens when you do have this move going into the stock market? a weaker dollar incentivizing a bit more of a bid into the stock market. let us dive into the tentacles of it all. let us go to abigail little. abigail? we are going to come back to her in one second. fleming is a point regarding the currency market. this is coming after a lot of strength. tentacles is coming into play here whether or not the move is

driven by fundamentals -- fundamentals is coming into play here, whether or not the move is driven by fundamentals. this is important when it comes to supply chain as well. president biden over in south korea, other parts of asia trying to secure a supply chain. here is intel ceo talking about just that. >> we see that we are way too dependent on too few places in the world. what aspect of your life is not becoming more digital? everything is becoming digital. my consumer, my health care, my transportation. everything digital runs on semiconductors. where the oil reserves are defined geopolitics. where are they fabricators are all more important for the next several decades.

filled them where we want them and do it in a way that we have more resilience in the supply chain. kriti: let us bring in the global head of cross assets at j.p. morgan. i want to dive into what the intel ceo said, the returns on the oil space. shifting to the tip space. eddie comes from the background of supply chains that are big under stress. that is being constrained by the markets right now -- it comes ? >> we see aspects of the supply chain being put back and do countries or regionalized back into that part of the world. you can have a shorter supply chain. semiconductors is a great example of that. we expect transit to dominate the 20 30's.

it all has their own plan to bring semiconductor manufacturing back on shore. alongside some of the medical products as well that we saw during the covid pandemic, these are a collection of items or the supply chains are going to shrink. that is a minority of the things that are traded globally. a significant amount of today's globalization of the standard process. kriti: this brings me back to the dollar and deglobalization and cashless, you can use anything with it. how much of a ripple effect can we expect to see from a one weight track upwards for the dollar? >> i do not think it accelerates further, the global economy can take it. i think it is a reflection of

their opposed -- the robust growth we have seen in the united states. there is a risk off element around the shut down in china. exhilarating move to the upside would cause financial stress, i think that the market can take it as long as it does not accelerate. kriti: as we see the stronger dollar, stocks returning to the dynamics of the stock and fx picture. i have to ask, we are seeing green on the screen. is the selling over? >> we have seen a market stretched in a number of ways. we are seeing a bit of a reversal today. the market is being very weak. we have also seen growth optimism, a high number in germany. bond yields are rising.

we have a ton of data, setting the narrative around growth. public consumption in the u.s.. what the market has been fearing is that the growth outlook may be weakening and earnings trent ford, there may also -- trend forward and they also start to weaken. kriti: what would signal that? this selling is in the rear view mirror? >> inclusive top and easing in inflation, clarity about where the peak in the federal funds rate is going to be. a view for the growth slowdown that everyone knows is coming. it is not going to be bad enough to drag earnings growth into negative territory. it will take a number of months

before we get a clear signal. need a reactions to prove that case. that is the real thing that the market is going to be looking for. we will be seeing it within that context. i think you need to see the emphasis of the robust conditions right now in the u.s. and see that growth is not falling off of a cliff. kriti: easing of inflation and growth slowdown. we bring the conversation full-circle, but gelsinger says that cannot happen until 2024. that will be sayer -- solved years away. and over spite for the stock market until we hit a recession -- that means nobody spite for the stock market until we had a recession. >> it is tough to fix.

there are others where you can make a credible case that inflation should be lessened. we have people who come into the labor force which may lead to a slowdown in wage growth. we see some issues on the rental side as well. the key risk to the market is that inflation does not subside quickly enough to allow the federal reserve to make the pivot everyone expects. there is a huge difference if the pivot happens in september or october versus deep into next year because of the inflation outlook. i agree that this is an unusual period or action on the supply side is the most called for, policies to bring people into the labor force would be helpful in the agricultural system and the semiconductors. the central banks have a job to do, inflation has been too high for too long. bring demand back into line with the supply.

we get the supply side policies or not. kriti: week thank you so much -- we thank you so much. let us go to the first word. news. -- first word news. mark: fewer people are taking the new york transportation system than expected. 19% fewer than the predicted. the lack of writers means less revenue. officials have said boosting ridership is the central issue for the transit agency facing a budget differences after one of runs out. pfizer and biontech says their vaccine is highly effective and prompted a stronger immune response in children under the age of five. they hope our lake trout reserves -- they hope early

trout results help children immunized. they have submitted their proposal for emergency authorization for young children. president biden said the military would intervene on behalf of taiwan from an attack china. >> when you defend taiwan if it came to that? >> yes. that is a commitment that we made. mark: it appeared to break with a policy of strategic ambiguity. the white house said he met that the u.s. would provide military equipment to taiwan, not send troops. global news 24 hours a day, on-air and at quicktake, powered by more than 2700 journalists and analysts in over 120 countries.

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with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup. and then... that's it? we feeling good? looks like we're feeling good. bring on today with comcast business. powering possibilities™. kriti: this is bloomberg

markets. broadcom is in talks to purchase

a cloud computing company. it would rank among the biggest ever acquisitions of a technology company. let us bring in a senior technology analyst. not only what a rank as one of the biggest acquisitions in the tech space, this company has a history of acquisitions. in 2019, how does vmware differ from the other acquisitions? >> it fits in with the semantics of acquisitions because they are trying to dive deeper into the software space. it actually brings them much closer to the cloud. vmware software is a much more enterprise and cloud ready type of software. the other kind of infrastructure that they acquired was a client/server software with a

slower transition to the cloud. kriti: when i think of broadcom i think about the apple supply chain. it does more than just chips. it creates products that go into everything. i have to ask, does this kind of diversity help their bottom line given that they had -- have hands in so many different sectors? >> they wanted to diversify the revenue stream. the chip sector is cyclical in nature. if you think about what the software industry is trying to do, going through a recurring software model. this could cause over a long-term provide some sort of cushion. when they chip sector eventually goes to a cyclical downturn. this provides a cushion over the long-term. kriti: i am so glad that you

talk about the long-term. pay over some technology companies globally, increasing 46%. we have seen this after technology companies have so much cash on their balance sheet. broadcom looking to buy qualcomm a few years ago. how indicative of this is a broader trend of this becoming an idiosyncratic broadcom story? >> that being said, i think vmware, broadcom was looking at the recent slides in the software valuations. this is a good entry point. if we look at vmware two quarters ago, it would have been a 20% premium to a $60 billion valuation. we are talking about a 20% premium on a $50 billion acquisition. i would not be surprised if other companies are looking at

their balance sheets and looking at some of the software companies or hardware companies as an opportunity buy. kriti: let's talk about acquisitions, in the world economic forum, i am curious about the china of it all, the geopolitics of it all. president biden is trying to secure lines. how is that play into the broadcom customer and the wider sector story? >> separating the conversation from m&a. the broadcom story and a part of supply chain story is a one that the supply remains tight. if we look at results from last week, we have seen revenues outlook missed because of the chip shortages. one of my concerns for next week's earnings is the impact to

the hardware sales to dell and hp q. that is because of a shortage on the ship side. we have concerns on the supply and logistics side of the ledger as well that could impact. based on my conversations with companies, and seems this will linger until your end. the chipmakers might broadcom and others are taking advantage of the situation by driving price increases because they have a very tight supply. kriti: always a pleasure, thank you again. we look forward to having you back. this is bloomberg. ♪

kriti: this is bloomberg markets, early data on the pfizer covid shot through the three dose regiment was 80.3 percent effective in children ages six months through four years old. i want to talk about the cases, the case count ramping up in new york city. we talk about the importance when it comes to children and adults as well. children are coming home from school with the virus. take a look at what cases are doing, omicron cases up, you start to see a little bit of an increase in cases. this is important as we go into the summer season. what does this mean for families who are staying home from school? to discuss the virus is a senior scholar at the johns hopkins

center for security at the bloomberg school of public health. we thank you for joining us. what is the likelihood this 83% turns into 100%? >> it is important to take what benefits we can get and that includes the vaccine and making sure that it is possible that there is a testing program where your children are doing all of the things that you can to reduce the likelihood of exposure. the vaccine is wonderful. kriti: i imagine we are going into the summer season, what does this look like, we are seeing a pickup in cases? you also have extremely high positivity rate. what do people do when there is a lot of density and a positivity rate that seemed to be rising? >> you have to do what you can. even if cases were low, it is

possible to be unlucky and pumped into the person who has covid. i would recommend doing things that are in your control. you can make sure they are wearing a mask in public places. get vaccinated. get boosted. a lot of adults who have gotten vaccinated have not done that. they should do that right away. it takes a couple of weeks to build up immunity. there are things in our control and be in outdoor environments wherever possible. there are things you cannot control. do what you can. kriti: they would have to get vaccinated. no one can really know what is coming next. i have to ask, do we need to start getting the fourth shot? do we start looking at these vaccines as the way the weight that flu vaccines -- way that we view flu vaccines?

>> we see cases rise in the fall and taper off, i do not think we are there yet for covid. there are too many vulnerable people and nuchal variants are -- new variants are popping up. the virus is spreading into vulnerable people because it can. for that reason, we are probably not going to ca when they -- see a once a year thing. we may need a tailored vaccine for the latest variant. i would urge people to not make up their minds about what the future holds. the signs will guide us to what we should do as we all know, the sirens of the virus is changing on a regular basis. kriti: so many people who have recovered from covid but has the long covid symptoms, what is the

science telling us about how to treat long covid? >> it is an area of active investigation, defining what is is challenging. a lot of what goes into long covid is specific for covid and other symptoms are more general for respiratory viruses. when i had pneumonia, it took six months before i had the breathing capacity as i had before. there are things that are specific to covid and there are active investigation that the nih is funding right now. kriti: i have to ask about re-infections. what does the science say about that? >> people are getting reinfected for sure. your immune system, if you are vaccinated and exposed is much better educated and able to deal with it. it is not an entirely new virus that you are getting infected with. continue to do what you can.

that is to get vaccinated and boosted. kriti: she is a senior scholar at the john hopkins hospital. we'd look at the s&p 500, up 1.7%. the dollar continues to weaken, white -- down .6%. nasdaq does not stay into the close, we will see. i am kriti gupta. ♪ ♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor

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mark: keeping you up today with news from around the world, here's the first word. i'm mark crumpton. the international monetary chief does not anticipate a global recession, at the same time, she says the imf needs to come to the aid of developing countries. >> we are looking