>> more than halfway through the trading day, we are thriving all these moves. bloomberg markets starts right now. >> let's get a quick check on the markets. green on the screen. not as much momentum as we saw after the opening bell. you saw a 1% gain. only higher by about .4% now. how much of this is it simply

the china momentum reopening? how much of it has to do with? reopening -- with reopening? and the supply chain issue that needs to ease. apple shares are up .5%. how much of the bid right now is defensive? we will talk about it throughout the hour. the 10 year yield, back above 3%. inflation, once again entering the conversation. quarantine tightening, what will the impact actually be? keep an eye on the pound. we see leadership vote in the conservative party. this will be important for where the balance goes next. and a series of missteps and scandals became too much for members of parliament. the leadership vote could potentially move the markets. joining us now is our u.k. bloomberg economist. this is a move that may or may

not actually completely change the dynamic for the pound. the political obligations. how much information do we -- did we actually get today? >> the markets basically don't care, unless this leads to a general election. the vote takes place between 6:00 and 8:00 p.m. remember, it took 15% of conservative mp's to trigger the vote, but it's going to take a majority to oust boris johnson. that is 180 mp's. he had a try -- he had a private meeting earlier today. on his way out, many think he is going to win. this is the culmination of months of speculation about boris johnson's future. with the queen's platinum jubilee ceremony over the weekend, boris johnson was booed

as he walked over the steps of the cathedral. the 54 mp's that triggered the vote have decided he is so in popular with the population, he is no longer the electoral office he wasn't 2019. >> it also seemed like boris johnson, a very strong advocate of brexit as well, when it comes to the market perspective, we will digest this for our audience, that almost comes down to what alternative people were proposing, about what potential, that could be the market mover. talk to us about as an american terms of looking for more access to europe as a single market, versus perhaps adjusting the northern ireland particle. how do those areas square? >> in this meeting, the private meeting with mp's, one of boris johnson's arguments was don't get rid of me, are we going back to groundhog day? you are just going to have the same arguments you had about brexit over and over again. but if he loses this boat,

it's going to trigger a leadership election. some of the candidates include the former foreign secretary, the current foreign secretary. the chancellor has a sled down the list and says in -- the chancellor has slid down in popularity. this vote could weaken him, boris johnson. >> we did hear from downing street, saying they will allow the government to draw a line and move on to make the case to the mps. we did also hear some moments ago prime minister johnson saying now is not the time for "unforced political drama." you've also been a major

reporter when it comes to covering the boe. we will talk about the currency story here. how much does it matter further currencies, when you have the boe and the inflation dynamic in the background? >> that is what the markets care about. what the bank of england does. they thought we were going to see a pause in monetary tightening in the second half. night you've seen the chancellor announce even more fiscal support. yet more rate by the end of 2022. that's what the markets care about. >> lizzie burden -- lizzy burden, we appreciate it as always. let's go to cupertino, california. apple's conference event kicks off today with a live audience in person,. joining us on with more detail on what to expect is our bloomberg technology senior editor tom gile,. thank you for joining us.

talk to us about the product development. how much does this impact apple? ? what can we expect to hear today? >> there's a lot of anticipation around these events. the worldwide developers conference is the time that apple unveils big updates to its operating systems. to its software that runs on these devices. that so many people use. these are very important. because you are not upgrading your phone every year necessarily. some people do. but what is happening is apple is upgrading operating systems that they run on. and so, what that means is, it's going to give you more functionality. today what we are looking for is upgrades to all the major operating systems for the products, the ipad, the phone, tvs. etc. what you will see coming out of it is changes to, for example, on the iphone, the ios is going to have -- you will hear a lot

about what you can do while it is on the watch screen. what are some more capabilities? more things you are going to be able to do before you actually unlock the phone? ipad, you are going to see changes in multitasking for example. mark gurman, are apple reporter, has reported this is going to be one of the most significant upgrades to the ipad operating system in history. in terms of the health app, there are going to be new metrics, new detections for heart irregularities, for example. so a whole bunch of upgrades. you will hear a lot from apple executives today. there's a lot of excitement about it. it's been a while since we had an in person event like this. >> the operating system is going to be a focus. let's talk about another product that does not immediately come to mind when you hear apple. it is there mixed reality headset. there's reporting this is going to potentially overshadow the event today.

can you speak about the significance of that when it comes to apple's product line? >> absolutely. people have been waiting for years for the next big thing from apple. wasn't going to be hardware tv, the apple card? now the anticipation is really focused around a mixed reality headset, vr. we think apple is going to combine those things, it's not going to be solely vr or ar, we understand and have reported that the board got a chance to play with these headsets recently. apple's board. but we don't think we are going to see an actual device today. it would be interesting if they did. it would be a surprise. they may be dancing around it. they may hint at it. they may tantalize you with -- they may tantalize the audience with hints about what you could do with this or what the software might look like or what you could do with it. >> quickly let's talk about how

much more they can really go. it feels like every time apple comes out with a new product, we say, it can get better than this. do they have that secret vault of products they say they do? >> certainly the vr headset. as we've talked about a lot, meda, the company that owns -- meta, the company that owns facebook, is doubling down on the metaverse. they have a vr headset that is out there. if apple does release this device, you are going to see a lot of competition between these two big players. and right now, with the tech industry under so much pressure, particularly meta, a little less so apple, but it, too, has come under pressure, they want to see the next big thing. a lot of people think it's going to be some culmination of vr and ar for these companies. >> of course we will keep an eye on that. apple announcing the ios 16 with new sharing intelligence and communication features. mark gurman, looks like it's

officially being announced. thank you, tom giles, for joining us and give -- giving us the update. joining us to discuss more is rss investments chief market strategist. thank you for joining to read talk about the investment story. -- thank you for joining. let's talk about the investment story. are the products enough to attract investors to apple stock and the tech heavy s&p 500? >> a lot of the pain has already been realized. you want from this tremendous environment, from not only go-go growth but also make a cap type, it benefited from extremely low rates, massive money supply growth. also substantial fundamental improvement, given the spending changes. now it's really all gone the other way in terms of the fed is finally starting to gather the punch bowl, so to speak.

they have actually get to tighten money supply meaningfully. at least they stopped expanding dramatically. obviously rates have gone higher. now you've really started to see some pressure in areas of the market that very people thought you would see, six or nine months ago. a lot of pain is priced into these securities. prices and sales have come down dramatically on a relative basis, you shouldn't have dramatic underperformance of tech versus the broader market that you have seen so far this year, particularly go-go growth. it all gets back to whether we bottom out in this bear market or not. the reality is if we look forward, since the fed has yet to meaningfully constrain their balance sheet or reducing, we've already had money supply growth go negative, it's very hard to be overly optimistic in the short to medium-term. for large cap type in

additionally global growth. >> one of the cases for that is, the prices to sales ratio have come down, valuations are back to what they were for the sector, back to 2019 levels. given the massive growth we have seen for some of these companies in the last two years, why is that not enough to attract investors to dive both feet and? >> on a relative basis, it could be, particularly given the fact that defensive securities have done so well, defensive stocks this year. perversely if we do get meaningfully weaker economic environments, which means rates have been capped, that may drive a bid. these are securities. there's very little dividend. there is very little yield in terms of fixed income. in order to go higher, you need liquidity to drive them higher. when you have money supply

actually contracting in april, if you go back 60 years, it's very rare, prior to the fed given shrinking their balance sheet meaningfully, it's very difficult to understand where that waterfall liquidity will come from, where you had an abundance in 1920 and 1921. ultimately, buyers drive securities higher. even if there is better fundamentals, unlike a credit security or a highly generative security, you need people to drive those prices up, you need more market liquidity. . and the trajectory from that is most certainly not higher in the short term. more than likely lower. it's probably going to be a chopping suffered tech for quite some time. >> it kind of seems like you are making the argument that if more of the market dynamics are not working for tech as opposed to the fundamentals of the actual tech story, am i wrong? >> no, so, look, big picture, most of the pain is priced in. you've seen valuations return to

what most would consider a great buying opportunity. margin pressure is still in question in certain areas, like semi's, there's going to be durable demand, and some of the squishy or consumer facing technology, it is less clear since the business models are changing so much. on a fundamental buy is, you could be much more optimistic and going forward it's really going to be more about the broader market environment, whether we get sustained inflation and more multiple contraction, whether the fed can actually pull off this balance sheet reduction or not. the reality is, for the broader market, which is very tech heavy, you only seen through multiple terms of compression. we typically see five to eight in untied frightening cycle. -- in a fed tightening cycle. >> thank you as always for your time. time now for bloomberg's

first word news. >> prime minister boris johnson is fighting for his job in the u.k. members of the conservative party have forced a confidence vote, after scores of johnson's mp's submitted letters calling for him to step aside. the result will be announced later today. the prime minister told tories that now "is not the time for unforced political drama." scorching heat across texas is expected to repeatedly drive electricity demand's all-time highs this week. it will likely serve as the biggest test to the state's grid since last year's deadly winter storm that left millions in the dark. electric reliability of texas says power demand is expected to peak at about 5:00 p.m. local time on tuesday. topping the august 2019 record.

in iran, the death toll of last month's building collapse has risen to at least 41. the incident which happened in the southwestern part of the country has brought attention to shoddy construction practices, government corruption, and negligence in iran, following weeks of protests in the region over skyrocketing prices after the government cut subsidies to several food staples. australia's prime minister says the government has reached out to china to raise concerns over what he has described as "a dangerous maneuver." aircraft were taking part in routine surveillance activity last month, when it was intercepted by a chinese fighter jet over the south china sea. it is the latest encounter between the two countries' military following a separate and -- following a separate incident in february. gina: --

global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪

>> we are waiting for more headlines, more developments from the worldwide developers conference from apple. apple shares are up about .2%. let's recap some of the headlines, when it comes to the product developments. apple ios 16 featuring multiple offscreen options. they are looking out -- looking at marking messages as unread and even looking at things as an edit button, perhaps weeding twitter to the punch. -- beating twitter to the punch. we will keep you updated

on the headlines. bloomberg has not been granted access into the event. as soon i -- as soon as -- we get more information, we will bring you the updates to the audience. musk says he might cancel the deal with the twitter giants if they don't share information. he plans to enforce their agreements bjerga joining us at a break it down is bloomberg's kurt wagner. thank you so much as always for joining us. this is fascinating to watch the saga continue. have to ask, what's the likelihood twitter can actually enforce this deal and the $1 billion breakup fee is not actually used? >> well, in terms of legality, they can force him, they can bring this to court. and basically attempt to force

him to do the deal. that would be time-consuming, it would probably be very expensive and very messy. my guess would be that at certain point, there would be some kind of settlement, rather than dragging this whole thing out, and for somebody who doesn't want to buy a company to buy a company. i think in that case, the $1 billion would have to just be the baseline. for any type of financial payment. because twitter is going to lose so much more than that in stock value and market cap. if this deal falls apart. >> we of course are going to keep an eye on that. i believe twitter shares are down in the session. still ahead -- we will stick with the tech story. the apple conference, kicking off today. we will speak to the cfra senior analyst about what to look forward to more. this is bloomberg. ♪

>> apple is set to reveal new versions of its operating systems for iphone, mac, watches, and tablets even during the worldwide developer conference. let's bring the cfra senior industry analysts, thank you for joining us. -- analyst. thank you for joining us. i had an ipod touch and a flip phone. every year, apple was creating some sort of new product that was changing the face of mobile gaming and things like that. how do you take that momentum to these marginal improvements? >> it was a matter of time before some of the incremental additions started getting more

minimal in nature. apple continues to be the only smart phone or product provider, the only mobile ecosystem out there that continues to go for consumers out there, to give them a reason to upgrade. that's where they continue to be so successful over the last decade. >> we are also getting a headline here, apple saying apple pay is getting up a later function. in response to that, you are seeing a firm decline, extending their decline. talk to us about the apple pay component of the story. >> it was something that we were speculating ahead of the event. two things we felt we could have seen, not necessarily at this event but at some point in the calendar year was a paid little functionality on their platform, as well as the potential for a hardware service capability. i think it was just a natural

evolution within their platform. it continues to migrate to where consumers are going to. i think it is a natural progression. >> have about 30 seconds here. i have to ask about the apple streaming of it all. there other business -- their other business. where does apple streaming go next? >> i think the sky is the limit for them. whether we are talking about on the tv side of things, the music side of things, there so much potential. clearly we do expectancy -- expect to see an operating system in the coming months. i think there's an inevitable amount of opportunities for them to capitalize and generate potential revenue from those capabilities. >> loss to digest, of course. -- lots to digest, of course. as we get more headlines,

apple shares up about .3%, the real move is in the firm, those shares are down after the apple headline pyramid coming up, beijing is back. covid cases remain under control. we will discuss all of it in a major conversation. don't miss it, stick with us. that's next. this is bloomberg. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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>> i'm mark crumpton with bloomberg's first word news. mexico's leader won't attend the summer of the americas taking place in los angeles this week. president albro door -- president obrador said he regretted not being able to meet mr. biden and los angeles and said he will travel to see him in the u.s. next month. turkey and russia reach a

tentative deal to clear mines over the coast of odessa and start ukrainian agricultural shipments. bloomberg has learned that kyiv is skeptical of the pact. worried that removing defenses could leave the port open to russian attacks. the russian invasion has cut off shipments of grain from ukraine. it left moments with food shortages. moscow denied responsibility for the destruction. bolsonaro is struggling to reverse a steep rise in fuel costs that is stoking inflation and eroding his popularity. just four months ahead of the nations general elections. several ideas on the table, from lowering texas to changing the present policy of his state owned petroleum company. experts say most of the ideas are unfeasible in the short term, or unable to produce the desired results. global news, 24 hours a day, on

air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. >> let's dive into the markets and get a quick check on the price actions. green on the screen. the s&p 500, tech really seems to be moving the market. the 10 year yield, back above 3%. this is crucial. inflation, a part of the picture. is not just about growth. we have to talk about the currency markets. dollar strength, crucial, pushing the japanese yen to a 20 year low. its weakest level since -- ince 2002.

>> we continue to see the weakness in twitter shares, after the latest comments from elon musk. tesla is one of his big businesses. perhaps, investors buying that stock because of the twitter uncertainty. the other factor is what's happening in china, given the presence tesla has there. we are continuing to get headlines on the apple developer's. shares are higher. the market, weighing in on the massive 20 41 stocks before amazon. those shares are up by more than 2.5%. >> absolutely. we will talk about the macro picture again. economic growth concerns, weighing on the global economy, no matter where you turn. recently we heard from the former u.s. secretary, who said it is having an impact. >> we are seeing a little bit of indications that some firms are no longer reporting the kind of

huge labor shortages that they were before. we are seeing some indications of inventory buildups. but i think overall, the picture is still very -- still a very stretched economy. >> let's dig into the market moves of today. green on the screen. abigail doolittle joins us on set. is this sustainable? what is the market waiting for, to really see this bear market is over? >> a little bit of a roller coaster ride right here on the day, which underscores the point that you are making, is this sustainable? we are actually up almost 10% from the may 20th trough low. we had been up 1% today. now we are up about .4%. it seems to do with the uncertainty and the move in yields. earlier today, there was a lot

of enthusiasm for the idea that china lockdowns are coming to an end. that also cut main some inflation -- that also could mean some inflation. it could drive oil prices higher. other natural resources higher. we see yields going higher. once the 10 year yield hits let's call it 303 or so, that really seems to send. stocks are led lower. . it is interesting to see that this is -- send stocks a leg lower. it is interesting to see this continue. it is expected to be lower for may than april. >> when i look at what the strategists are saying right now, you look at the s&p 500, the fact that we essentially saw some arguably froth and some stocks come out of the market and basically just get us back to where we were a couple of years ago, it almost would suggest that this back-and-forth we see in the market is investors deciding whether they want to continue selling, after

bringing stocks down from the all-time highs. >> probably so, john. i think it goes back to the move in yields. we've had this massive back and yields this year similar to 2021, but then it was all about reflation, this year is all about inflation. it then went all the way back down to 110, providing fuel for a rally. it looks as though the 10 year yield may back down from these current levels. who knows to where? maybe 175, 150. if that were to happen, it could provide some fuel for the rally. can to be sustained? if the inflationary pressures fall back, even for a relatively short period of time, it could give the stock what it's looking for. from evaluation perspective, it makes the stocks looking been a little bit more attractive. never a dull day for sure. >> that's true. thanks a lot, abigail doolittle, joining us with market perspective. and from the u.s. to china,

where its capital city is loosening up the covid restrictions, as cases remain under control. joining us now is the chief economist for bloomberg economics. this is obviously one of the big pieces of the market pie recently of uncertainty. can you help us quantify what the headlines mean, in terms of what starts to happen with the chinese economy? >> so, april is really a disastrous month for the chinese economy. it was contracted, retail sales contracted, the property sector continued to sag. may doesn't look like it was much better. why is that? basically because shanghai and beijing, the nation's's political and financial capitals, were locked down. now after eight grueling weeks of quarantines and lockdowns, shanghai is reopened -- shanghai has reopened and beijing is moving in the same direction.

the media outlook for china's economy is now significantly stronger. more people moving around. more people going to factories. more people going to shops. we are definitely going to see greater coming back. the question continuing to loom over china and the world is, what happens next? if china sticks with covid zero, this might be a temporary reprieve. at some point in the future, will we see more cases in shanghai or beijing? more cases and another big chinese city? we might be back to square one, seeing a repeat of lockdowns, a repeat of quarantines. etc. >> the repeat is exactly where i wanted to go. specifically because it was driving the market this morning. the u.s. stock market actually open to because of the idea of a reopening china perhaps helping ease the supply chain issues, exports being able to come out. if this is a long-term story, the covid zero policy, how does

the rest of the world get their hands on the exports coming out of asia that they sony? >> -- so need? >> i think there are a bunch of pieces to this story. the first is how long does china try to stick with covid zero? they've had a vivid demonstration of the costs. so surely xi jinping and others now must be thinking on a forward basis about how they get the economy back to normal. . how they move towards living with the virus. that will probably not come until after the party congress in the fall. the other big question is -- what does this all mean for global inflation? you mentioned optimism, kriti, exports coming back, easing supply chain stress. but there's also a risk in the other direction. a china that is growing more strongly, buying more oil, buying more agricultural commodities. that is going to add to inflationary pressure at exactly

the wrong movement of the fed and other central banks. >> to build on that part, tom, whether it's here in canada or to your point in the u.s., everybody's watching aggressive central-bank action and wondering whether you got a so-called soft landing or ultimately it leads to a recessionary environment. how does china ultimately factor into what happens, given we are already seeing these higher rates in north america? >> so, i think all we can say at this point is that china is a massive and uncertain variable, shaping the outlook. right? we didn't know what was going to happen with russia's invasion of ukraine. we don't know if russia ultimately will turn off the gas to europe, and put europe into recession. china is reopening today. that is a little bit of optimism for china and the global economy, the global markets. but we don't know whether the covid zero strategy, combined with the contagiousness of the

omicron variant, is going to put china back into a lockdown in the second half of the year. those two new tractors, russia, ukraine, and china covid continued to weigh on the outlook and shape the inflation outlook and the central bank outlook in multiple ways in the months ahead. >> i want to go back to a point you made in that you could actually see china move and the other direction where they are buying more. where they are having more demands for oil. if it does go in that direction, does that mean china will not be dragging down the global economy? but instead perhaps accelerating it? >> that's right, kriti. but what china gives in terms of contributions will also be taking away in terms of adding to the inflation. right now if we think about the big concerns of the markets, the big concerns of the central banks in the u.s., and canada, it's really inflation, which is driving the narrative.

the china reopening is going to mean more exports for everybody, is going to mean more for the global economy, but there's a bigger focus for powell and other central bankers, the fear that china reopening may drive oil and commodity prices higher still, adding to the challenge of bringing inflation under control. >> tom orlik, thank you as always for your time. let's head back to one of the big stories this morning. the apple worldwide developer conference currently underway. apple is getting a a later function, helping drive up from stocks even lower. moments ago, we described the changes. >> it will split the cost of an apple pay purchase into four equal payments spread over six weeks with zero interest and no fees of any kind. apple pay leader is available everywhere. apple pay is accepted. in apps and online.

>> apple is unveiling a host of new software updates for its main devices at its annual worldwide developer conference. joining us now from there, live at the event, is our principal analyst and founder. thank you for joining us. i want to dive right in with one of the new products they are announcing. car play.

saying they must have interface for a lot of the cars coming from apple. already saying if you are working with audi, mercedes, and the like, you could already have this in your car. this is new. but this into perspective for our audience. how big of a deal is this in terms of apple really broadening its scope? >> this is apple getting inside of every car, bringing that experience that we expect, when you think about ui and design. seeing everything from your music, tell your images and photos come all the stuff you need inside a car. they are putting the ability to bring that experience from homes or car, then back into your personal and work lives. it's part of an ongoing effort that we have been seeing with the expansion of car play. >> when we think about apple and obviously everybody is always curious about the new hardware, but the services business has rapidly grown. it sounds like what you are saying is apple making the case of connecting more of everything

within the home and out of the car is one way that they continue to, i would imagine, get developers excited as well? >> you are right. there are so many developers excited about this. it's the ability to extend from product or services, to experiences and outcomes. you saw what they did with car. the announcements in terms of what's happening inside the home, the ios 16 announcement makes a lot of things different. there are five principles we are seeing over and over again, the first one is this privacy by design, making sure that is incorporated across all devices and experiences. making the individual is protected. the other one is around collaboration. they are doing a great job allowing you to share within groups you care about from families this might extend out into the enterprise and work. and of course we are seeing a lot of talk about this and ability in terms of how they use their power and performance in terms of how they operate. and of course we are seeing a lot of work they are doing transforming those experiences that we love. taking them from work to home

and back into other environments. that's been a lot of what they've been up to hear. of course and ethical use of ai. you see that everywhere. going from precise of technologies to mindful, the use of ai and on a latex -- ai and analytics designed to protect the user. really different from any other silicon valley company. >> as we get more developments, apple shares, aapl is your ticker, up .7%. you do see good news getting price 10. who are also seeing bad news for apple competitors getting price in as well. we were talking about after p ay earlier. actually down 3.5% off the news. can you talk about apple in the context of the wealth platform and this payment system? >> yeah. this is a big deal. when you think about markets like north america were almost

90% of the users on a smartphone are on apple devices, that means everything from the wallet to the identity to payments is happening on an apple device. we are making that easier for people to take advantage of building a services. shopify being one of the first partners. pay later is incredible. the ability to buy something and break it up into four payments and there is no additional interest on top of this? i'm curious as to how they are making this happen. it is a huge win for suppliers and developers. they are doing payment and order tracking on the backend. you will get the tracking capability inside. apple pay on the wallet. then of course the ideas with the states of arizona and maryland putting the drivers licenses and also tsa allowing to use those ids to be able to travel around -- these are game changers in the marketplace. >> something else people are curious about is the ar/vr future with apple.

we may or may not get some details on that today. does the company have to start roadmapping a little bit more to give us a taste of what they expect this to represent and look like? >> yes. they've been strangely silent about the metaverse economy. we are curious to see all the assets that apple has been building around ar/vr capabilities. and the rumored hardware that might be out there around glass. we understand from developers that there are sessions that are going to be focused on ar-br. -- ar/vr. we are just not sure how much they will reveal in the keynote. >> their watch is not going to the actually needed, have they cannibalized a little bit of their own business when it comes to the apple watch? >> yes and no.

one of the interesting things they announced today was that their heart app capabilities are now approved by the fda, which is huge. even if you don't have the apple watch, being able to extend the performance across devices and other themes we see popping up around continuity and apple, the ability to bring anything from an ios device to watch, the ipad, then back to the mac, they have been working a lot on that roadmap. we are starting to see some of the fruits of that. hopefully they might announce something around chips today. >> we will continue to watch and bring our viewers an update on that. ray wang, of consolation research, thanks so much for your time. we will take a break. when we come back, elon musk's twitter take over, in jeopardy, threatening to end the deal with the social network over a lack of information tied to spam robots. details on that, next.

this is bloomberg. ♪

>> for what it's worth, $44 billion is of course what elon musk planned to take over twitter with, except that right now looking at the mac market valuation of twitter, it is around $30 billion, the news we have been tracking today, the update with elon musk calling out the company, saying without more information on so-called spam bots on the platform, that there is a breach in his opinion when it comes to the terms of the deal. twitter did response to that -- respond to that and said they are working to get elon musk the information he wants, but that we have a deal. the market hates uncertainty. >> it's not just about twitter

shares, it is about tesla shares as well, this idea that if twitter actually -- if the deal with twitter goes through, does it take elon musk's attention away from tesla? ? this is crucial, john, in terms of even not just the future of the company, but the one billion-dollar termination fee that is at stake here. >> yeah, for both sides, if this is headed towards some kind of legal show, does elon musk want that? does he have time for it? and for twitter itself, do they, too, want that uncertainty and turmoil in a time that there's already been a lot of changes and senior managers and executives that have left the company? but it doesn't feel like everything is pointing towards the idea of whether or not these two sides are going to work on a new deal. we will have to wait and see how it all plays out for sure. >> and do the courts get involved, the sec? what are the legal applications here? twitter shares are down .7%.

tesla shares are of 2.4%. we will talk about all of this in the hours ahead. stick with us. for now, this is lumber -- this is bloomberg. ♪

>> johnson is ready for his job -- fighting for his job. this a good bout has already begun with results due to be announced later today. before the vote, boris johnson said "now is not the time for unforced political drama."