mark: i am mark crumpton with first word news. police in texas did not try to break down the classroom door were 19 children were killed because they believed the gun was barricade -- gunman was barricaded alone and no one was at risk. the texas department of public safety said that was the wrong decision. >> for the benefit of hindsight,

now, it was not the right decision. it was the wrong decision. there is no excuse for that. again, i was not there. i'm just telling you, for what we know, we believe it should have been entering as soon as you camp it where there is an active shooter, rules change. mark: the shooter got in through a school door that had been propped open by a teacher. law enforcement officials have faced mounting questions and outcry from parents and the community on the police's response to the massacre. senate democrats say they were more optimistic about a compromise with republicans on gun control legislation in response to the texas massacre. lawmakers say they plan to continue negotiations by telephone during their 10 day recess. sunday, president biden will travel to texas to honor the victims of the shooting. texas governor greg abbott is reportedly dropping plans to address the national rifle

association's annual meeting in person today. he will deliver a taped message to the nra instead. the dallas morning news is also reporting that texas is lieutenant governor, dan patrick, the state second most powerful elected official, is canceling his speech to the nra. the maker of the gun used in the shooting is not attending the nra meeting. a spokesman for the georgia-based company said that he is skipping the gathering due to the horrifying tragedy involving texas where one of our products was criminally misused. to continue, we can't -- we believe this is not the appropriate time to promote our products in texas at the nra meeting. senators released a revised version of a bill designed to rein in big tech. the bill also aims to ban major tech companies from giving preference to their own products above those of competitors, a change that will likely impact companies including meta,

amazon, apple and others. tech groups have already said the updates don't do enough to meet the requests. global news, 24 hours a day, on air and on quick take, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this bill burck. -- this is bloomberg. >> welcome to bloomberg markets. let's dive right into the price action. this is interesting. after several weeks of losses, on the the p5 hundred, it is poised to turn the story around, making a record of weekly losses breathe the s&p 500 is up to the tune of 1.8%. rebalancing is a major theme in print as we look at the last training day of may, head of the long weekend, here in the states, we have the nasdaq really outperforming. the stocks leading to the record

highs are climbing back from those major selloff levels. the russell 2000, as well. outperforming the momentum. that is the trait of the day. jon: let's take a deeper look at those technology stocks. for example, on the dow jones, you have names like apple and microsoft that are top high performers. both are set for a wedding week. tesla has a 6% advance. is a top-five performer in the s&p 500 prude also, set for a wedding week. we will continue to watch the retail story. earlier today, there were signs based on the outlook from the analyst creating macro economic environments that are going to be increasingly challenging for some of the key retailers out there. kriti: that is what is powering the market. if you don't have a strong consumer, do you have a strong economy? that appears to be the question. forecasting whether or not it

will be strong, that is was important. this morning, the economic data is showing that consumers are still spending in the face of high inflation. this is real spending paid it is up higher for a fourth straight month. there is green on the screen. it tells you that people are still spending. sure, at a slower pace, but the economy is strong. the consumer is strong. what are markets worried about? that is what is the narrative. jon: joining us with more perspective on all of that is sarah. she is the director and senior economist with wells fargo corporate and investment bank. thank you for being with us. obviously, given the state of the jobs market, there are a lot of people that are getting a steady paycheck. it allows them to pay for stuff in their lives, but on the inflationary front, this is been one of the big questions. at what point does the spending start to get somewhat stretched? what is your general assessment of what we are seeing right now? >> we are seeing consumer spending remain resilient.

as you mentioned, we have seen real spending increase every month is here. that is in the face of this elevated inflation environment. from that perspective, we do have underlying strength in the consumer, but we are seeing many of the tailwinds that have supported consumer spending. they are beginning to deteriorate to the fact that households have had to lean more heavily on the balance sheets and save less over the past few months to fund spending. it is an important dynamic, when you think about the overall pace of spending, going forward. jon: kriti: i'm glad you mentioned the depth part of it. on a consumer level, household debt is actually at a extreme low. that is stimulus for a lot of people. mortgages, auto loans. i have to ask, now that the phases in the rearview mirror, how do consumers continue to absorb the cost? sarah: the starting point for balance sheet is to look ahead. it does give some room for

consumers to lean on those balance sheets. if you look at household relative income, it is the lowest since 2002. the debt services even lower. about the lowest we've seen since 1980. that gives room to continue to rely on the balance sheet, but if we are not going to see a deterioration in this balance sheet fundamentals, it will come down to what we see in terms of the labor market. the ongoing strength in jobs. it may not sustain if workers can continue to get wage gains that keep up with inflation. that will be really important for driving income, and spending growth as we get further into the year. jon: going back to the numbers on inflation which are three times the preferred target, on a day when you can look at one of the key indicators that is showing perhaps a little bit of cooling and prices, as your tone change in terms of what you are expecting from the fed in terms of their aggressive pass going forward -- pass going for?

sarah: yes, we saw inflation cool, but it was largely as expected, and ultimately, we stepped back. it is still way too hot as far as the fed is concerned. a core increase to 4.2%, annualized. double the defense target, even when we strip out some of those facts that are starting to drive those numbers down. at the end of the day, what we have seen is consumers willing to lean on those balance sheets. the fact that one of the strongest areas of income growth was in labor compensation, i think that shows that there is still a good amount of momentum for consumer spending. that is going to keep the inflation pressures heightened on and on a hawkish path. kriti: we have talked a lot about what is happening in the united states. let's talk about what is happening outside of the nazis. the idea that the lockdown, the european inflation story -- does it drag down, or is it going to drag down the american economy

to the point of a recession? or is out of fear that is overdone. sarah: overall, when you step back and look at the economy, it is very domestically oriented. yes, we have exposure to the global environment, but much less so than any other major advanced economy. i think there is some good degree of insulation. that can help in the overall economic picture. in the near-term threat, regarding a slowdown in china, it will be closely related to the lockdown. that is what we're seeing. it could be a factor that limits how quickly inflation slows when it comes to finally giving some relief to inflation, which has been one of the many different aspects of the inflation environment. it is the fact that we have inflation. i think, when it comes to the european story, a lot of that reflects the higher commodity prices, and the greater exposure that europe has in the energy prices. we are not immune from that the

u.s.. our exposure is low, we think about the spending basket. jon: maybe we will build on the question. if you were to see a recession, what kind of recession might we be looking at. we have a conversation on bloomberg with the former fed, alan blind bird. he said that it would be in, his opinion, a mild one. sarah: if you look back at the fundamentals, and the u.s. businesses, the fundamentals are strong. we talked about balance sheets and corporate balance sheets. they remain strong. that's going to help underpin spending and growth. even if we see activity slowdown, and contraction for a quarter, there is a limited scope of how far that decline will go, given the household businesses do not have to deliver. there is also some scope for a limited contraction in the labor

market, given how tight the labor market already is in the fact that we have significantly slower population growth in the united states. i think that is putting some sustained pressure on the labor market, and it is going to limit how that reduction goes in terms of job losses, where you do have so few people that it will keep the labor market tight and employers still in very much the need to hire. jon: cerro with the market. looking for to have you back on the show. we will talk to the ceo of one of the leading energy companies. why he thinks the ukraine could become the main energy supplier for all of europe. that conversation is next. this is bloomberg.

another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

kriti: this is bloomberg markets. the war in ukraine is still ongoing. energy prices are still rising. the prime minister has an exclusive interview, stressing the importance of further investment. take a listen. >> to tackle inflation in the medium-term, to deal with it in the medium-term, you have to deal with supply-side issues. we need energy companies to put more into hydrocarbons. but we also need the whole country to be invested in all of the carbon energy. we cannot afford to be totally dependent on hydrocarbons. at the same time, we have to accelerate our drive for low carbon energy. >> in another part of your, the ceo of the leading energy company says that his nation can

become the primary supplier. all of europe is removing russia from the equation altogether. joining us from london is maxed. the ceo of detect. we thank you as always. let's start with the story of reducing reliance and making ukraine perhaps the supplier as we said for all of your. how can we do that. what time from are you looking at when you look at the pipeline infrastructure? >> thank you. unfortunately, today, european countries in europe are the hostage of putin. 45% of the metro acceleration with russell -- russian oil generation, so it is dramatically stable. european union. you can see russia as a reliable energy requirement. it is time to change it. i think that it plays crucial in

future energy security. what we can offer is renewable energy. today, we bring initiative by 2030. it will be accepted in the economic forum, so what we offer is a gigawatt over and will capacity, i 2020. what it means is we can reduce the consumption by more than 10 pcm. the ukraine will start to become a major renewable energy supplier in the next year -- european. along with supply. if we manage to bring a coalition of energy companies, country donors, we can accumulate 38 euros. it will realize the progress. we can play the most role in

energy security. european countries, in the country. kriti: i'm am curious about the pipeline in ukraine. how can you handle that, and how can russia be a reliable supplier, but can ukraine really be a reliable supplier when the pipeline is in question? >> we surprised the world, and a strong ukrainian army. there's is not much that we have connected in the increased rate to the europeans, so basically, the ukraine is part of european energy. being connected, we can say even now, because of the significant drop of increased consumption, and can cassidy of nuclear and thermal power, the ukraine is

offering right now expertise, so we can help european countries to reduce dependence on russian energy. >> obviously, in this environment, there have had to be many fast decisions made. in the industry, typically, there is a process that involves regulators, and that is certainly true in europe, sophie walk us through the timeframe, how long it would take, to get some of these approvals to do what you're talking about, from those regulators in europe? >> it is definitely a bottleneck. i gave you example. we connected insomuch as the conversation, meaning we cannot have that. but since that time, for more than two months, we are asking for ukraine to allow us to support an increased weightier. we have more than two tax price

differences, and unfortunately this decision is not made yet. the bureaucracy has an immediate decision and a long-term plan. . but eventually, there was a capability to make such a renewal capacity and start to measure the supply of energy to europe. jon: kriti is talking about infrastructure in europe. i want to talk about your need to raise funds to rebuild infrastructure over the long term, as well. how much will that cost in your estimation? >> that means not only to build, but also flexibility.

this is renewed hydrogen, and according to our estimate's, with 40 billion euros, but we are talking about private care. a risk from global energy companies. what we need is the international financial institution, or the government of the european or international representatives. so i believe that private capital is ready to come to ukraine, but we need this element of political insurance. >> the plan is contingent on the war and ukraine ending. stability in the region. in terms of timeframe, you are looking at 2030, but in terms of timeframe, what are you modeling out with the worn ukraine actually ending.

>> of course, it is a prerequisite for any significant investment in the ukraine, but we start preparation now. we form a coalition, and we have a serious discussion about commitment, or the participants of the committee. we will develop it, and i believe that by the time, we will be prepared. we will have a situation, so capital start coming to the ukraine. i am confident that we will be in this war, and the time will come when it will align with investors, and the energy company will want to participate in building a new ukraine red >> we appreciate you taking the time to speak with us. the ceo of detect's training is. coming up, can the growth shares getting hit hard on the session today recover?

up next, discussion with the cannabis industry. this is bloomberg.

>> this is bloomberg markets. time for what it is worth. our number today focuses on the cannabis company canopy growth. that company's revenue clocks in at just over 100 million dollars canadian. that was well below expectations. among analysts, that was where profit shares remain for this young industry. we have heard from david klein. he said that he does see a path towards profitability. have a listen. >> we have a path to profitability as it relates to

driving toward premiumizaiton. we took actions to reduce cost so we can get to the profitability number, starting with gross margins all the way through to the bottom line. when i positioned our company strategy, it was really to be the north american cannabis player that is brand led in premium focus. the canadian performance with premium, the number one premium cannabis company in canada, by the way, that focuses on the u.s., and with the brand in our portfolio. what i should point out is that none of our u.s. ecosystem, even though we paid for those businesses, consolidate into the financial results, and each of those businesses are profitable, and they are high-growth businesses.

the story needs to be told around the totality of our opportunity across north america. jon: highlighting that they have big plans, but there have been complications on both sides of the border. kriti: arguably that the market is not having them. session highs at 1.7% higher on the day. i'm kriti gupta. this is bloomberg. how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha!

or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

mark: keeping you up-to-date with news from around the world, this is the first word. i am mark crumpton. police in texas initially did not try to break down the classroom door were 19 children were killed because they believed the gunman was barricaded alone and that no one was at risk. the director of the texas department of public safety weighed in. >> for the benefit of hindsight, what what we are saying now, of