mark: i'm crumpton with bloomberg news -- i'm mark crumpton with bloomberg news. the eu executive arm is expected to recommend next week that ukraine be granted candidate status, a key step on the long pass to e.u. membership. a recommendation which needs to be approved by eu commissioners would come with conditions linked to the rule of law and anticorruption legislation. the head of the international atomic energy agency says iran has a very small window of opportunity to restore its

landmark 2015 nuclear agreement with world powers. iran has cornered at -- has ordered international monitors to remove surveillance cameras to account for stockpiles of nuclear fuel. iaea director general rough ale narayana grossi called that order deplorable and said iran is risking a fatal blow to hopes of reviving the nuclear record. sri lanka's president is trying to avoid further disruption to electricity supplies amid ongoing antigovernment protests across the island nation. a plummeting currency and lack of supplies has mired sri lanka in the worst economic crisis in its modern history. the nation lacks foreign currency needed to support food and fuel. daily power outages have run as long as 13 hours.

former president trump and two of his children are asking a new york court to stop a deposition set to start july 15 in the state probe of the family real estate business. a trial judge and an intermediate appeals court have both already rejected the trumps' claim that new york attorney general letitia james is politically motivated. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ jon: welcome to "bloomberg markets." taylor: a second day of losses.

tech is the underperformer today relative to the s&p 500, but as you can see, another sort of red on the screen kind of day. crew markets going to be another focus on this program, still holding at about $121 a barrel. the 30 year yield, we had an auction just about 30 minutes ago, so we are coming off of a weaker tenure auction, so certainly yields continue to be in focus for us here. jon: and we want to get to a developing story. state street just putting out a statement saying that they have no plans to acquire credit suisse or do any kind of is this combination. we are seeing some reaction in those stocks intraday after a swiss blog sparked some big questions about whether that might happen. state street saying they typically don't make comments on rumors, but in this case they made an exception. china is in focus as well. production levels for tesla

encouraging investors today, but obviously with the uncertainty around future lockdowns, energy not having a big move today. stocks at chevron under some pressure in that oil complex. taylor: i know you're talking a lot about energy, and so interesting. we have a big ecb decision today , and with that move, inflation continuing to be a dominant issue with investors and economists. energy prices a big component of that equation. bloomberg caught up with the ceo of westside energy to ask her about price pressures and infrastructure. >> we expect oil prices will come off these highs, but obviously the near term are continuing to be tight and supply is continuing to be tight. one of the things that is going to challenge the industry is that we have been under investing for the past few years, so we do need could -- we do need to continue with investment. that will take more time. taylor: the most recent example

of some of these near-term factors is the fire that we have been watching and following over the large export lng terminal is which is set to wipe out deliveries to a european market that is already on high alert over tight russian supplies. joining us with the latest, bloomberg's simon casey. what you're seeing is maybe they near-term impacts of production and pricing. simon: we have been told by freeport lng that the plant could be out of action for about three weeks. the investigation is still continuing. the details of what happened are fairly flat on the ground. it has caused ripples around the world, and in the u.s. we saw a massive selloff in prices yesterday. the u.s. market had been very tight until that point. with this plant out at the moment, it was was possible for something like 20% of u.s. gas exports.

the gaskets turned into lng and that gets turned on tankers. with that gas not able to flow through and be shipped out, it is backing up into the system essentially, so there's more gas available to mystically. but as you mentioned, europe is very short of gas. we have -- we've had an energy crisis for the best part of a year. overnight, prices and the u.k. went up something like 39% on the futures market, which is an astonishing reaction. you can see how even this one incident on the gulf of mexico coast can reverberate around the world. jon: as you mention, this is one of just several lng terminals that have played quite a roll in the u.s. export status in this area. simon: that's right, there are seven operational plants in the united states. it is are possible for about 1/5 of export capacity. there are other projects in

development, multi-billion-dollar project. progress is slow, and despite the demand for lng, the skyhigh prices we have seen in recent months in the wake of the war in ukraine in particular, demand from europe right now is to replace russian gas, which the european union is trying to illuminate the dependence on. it is going to take years for some of these new plants to come through, and the existing plants in the u.s. are at max capacity at the moment, so with this one down, it couldn't come at a worse time. jon: helpful reporting, as always. simon casey from the bloomberg team as we continue to watch that energy story. we want to get more on the subject of energy. saskatchewan's premier scott moe has been meeting with members of congress, one of the largest oil

producers in north america, and joins us now. thank you for being with us. we have seen several canadian officials in recent months. the outgoing alberta premier also went to washington to mike the case for canada's role in improving energy security for the u.s. can you tell us more about these meetings and what will come from them? scott: absolutely. thank you so much. alberta is the largest producer of canadian energy. saskatchewan is the second largest producing province. we are in washington, d.c. meeting with embers of the senate and the congress in both sides of the house to advocate on behalf of us putting together a supply chain that ultimately is going to provide us with with american energy security for canadians, as well as for those in the united states, to ensure that we are not going to be faced with the vulnerabilities we are seeing in other areas of the world due to the russian invasion and other capital

infrastructure interruptions that we are starting to see. so we do have solutions here within north america when it comes to oil, but also when it comes to other energy products as well. uranium for clean nuclear power, as well is ultimately down the road, a conversation about rare earth elements and how we can ensure our stability and security in that space as well. jon: to your point about the commodity reality of canada right now, in an uncertain world, even in home province today, a fertilizer giant came out and said they are very much planning to boost capacity in the coming years and ramp up production. were you surprised by that announcement? scott: no, we have seen our industry making an effort to squeeze production out to provide some certainty in

this supply chain world, first for north america, but also to provide food security around the world. i think herein lies the example that we can look to, particularly in north america, where we have a very integrated food supply chain. food is produced in saskatchewan , further processed in other areas of north america and made available around the world. we should have those very same discussions ensuring that we have that sustainable energy supply chain, that north american energy security and the same way that we have done so when it comes to north american food security. taylor: coming back to oil, you have already talked about some of your key statistics. six to 5% of your exports are already coming to the u.s., and you have up to production in march on a year-over-year basis. are you at max production capacity? is it more of a transportation issue here as well?

scott: there's some restrictions with respect to transportation. the cancellation of k excel is an impediment in providing true energy security to all americans , but here's an example where we have an opportunity to provide more oil in saskatchewan for not only americans, but also canadians. we have one production field just north of the border that is using a carbon wash. we have a canadian company operating from a carbon perspective at a net zero carbon content, but they are buying carbon from a u.s. company and shipping that north through a pipeline, putting that into an oilfield, purchasing some of the most sustainable energy possible. this company is negative from a carbon perspective. putting that product back into line, back into the eastern seaboard, as well as to some canadians in eastern canada.

they are looking to buy more carbon, and more carbon will be comparatively sustainable oil provided to north americans. this is an area where we can increase production. we have some ingress capacity, and it is comparably the most sustainable product you can find. if the rest of the world produced oil like saskatchewan does, glow production would drop 25% overnight. this is the kind of energy security and sustainability we should be really striving to achieve. jon: before he let you go, what more can be done for the players in this industry in all aspects of commodities. we have spoken to a huge player in lintels and more based in your province who highlighted that there is an opportunity, but you've got freight costs that have gone through the roof, and obviously with the inflation realities right now, labor costs in canada are going up. so what more can come of these

conversations when it comes to assisting these businesses? scott: remove some of the impediments and regulations that are driving the cost of fuel. largely our inflationary pressures in north america are being driven by the cost of fuel , and we can reduce that to the degree that we can by removing some of the impediments that are in place that are pushing that cost of fuel around. the k excel pipeline is paramount among them. but really sitting down and formalizing these conversations about how we are going to power north america and provide energy security, and how we are going to do that as we transition over the next decade or two into the future as well. we have done this in the way of food security, and we thank them for that investment. they have been a leader in providing food security in north america from a saskatchewan perspective. we need to have those very same

conversations when it comes to energy security so that we can keep that energy cost as low as possible for saskatchewan, canadian, and north american industries. taylor: really appreciate it. thank you so much for joining us and for your insights. coming up, we are speaking with vanguard's joe davis about today's ecb decision and the aggressive central bank policy around the world. that is next. this is bloomberg. ♪

>> we expect to raise the key ecb interest rates again in september. the calibration of this rate increase will depend on the

updated medium-term inflation outlook. if the medium-term inflation outlook persists or deteriorates , a larger increment will be appropriate at our september meeting. taylor: that was ecb president christine lagarde speaking earlier. maybe signaling a better hike -- a bigger hike could be possible as soon as the fall. joining us is joe davis, vanguard chief economist. is this to be still a little bit behind the curve? joe: thanks for having me. yes, and i think many central banks were behind the curve last year. it was a central thesis to our outlook. we are clearly continuing to see a fixation on getting price pressures hopefully contained. i thought was interesting from the ecb if they start talking about medium run inflation outlooks knowledge and the fact

that we will not see material improvement in the near-term. jon: to build on not come from your vantage point, mohamed el-erian saying today is just too early, at least in the u.s. much to suggest we have reached a peak in inflation. what is your view? joe: i think it will be tough to tell. we are in a precarious situation. even if we had evidence it is peaking, it is still going to be high from any consumer's perspective. food and energy combined are a pretty powerful one-two punch. so central banks are in a pretty curious situation. they should be raising rates from those pressures on demand, and yet they were off balance going into the year, so it is a pretty tough neil gorsuch read -- tough needle to thread. taylor: blackrock was positive

on peripheral european spreads. i'm curious how you think about this impact on spread compression in europe. joe: one of the legacies, along thought of covid, the irony would be that we would exit the negative interest rate environment. as we do that we are seeing financial conditions, and unless anyone is seeing clear evidence of recession, i think we should continue to see modest improvement. we should not see material dislocations in the credit markets. that would be unnerving to many investors. don't see that. i see more normalization. we have seen that in the treasury market and the buns market, and i think we are starting to see it elsewhere. jon: it looks like your expeditions for u.s. growth this year are below what we saw from the ocd this week in terms of their estimates. just in terms of how it is influencing your investment plans and investment advice, what would you say to your audience? and we did just lose joe there,

but obviously this is a big question we have to watch for, especially in the fixed income world as well. just to reiterate that vanguard call, we are going to see 2% growth for the u.s. economy. this week we saw the oecd say 2.5% growth is their estimate, which of course was revised down. taylor: you really think about earlier this week with the world bank, talking about stagflation reentering the narrative. you heard joe davis talk about bringing some of the price pressures back under control. i think it is so interesting when within about these high inflation environments, the slowing growth environment, and that sort of dirty word of stagflation further reentering some of the narratives from these economists as well. jon: and joe davis addressing those ecb comments today, really putting forward a rate plan. we will ultimately see what happened. if you look at the mood of the markets today, some of the challenges we have seen in north american equities today are

based on that new messaging from the ecb. so we will certainly be watching that story very closely. another big story this week, apple was some big announcements at the developers conference. they also came out with a big plan for your car with their car play system. we will hear from a former apple executive who played a big role in the ipod and iphone on what he things about apples car filled future. this is bloomberg. ♪

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jon: this is "bloomberg markets." time now for what it's worth. our number today is $2 billion, how much annual revenue apple's car play system could add to its services business. apple this week made car play a key part of its developer

gathering. earlier this hour, i asked the former apple executive tony fidel about apple's car ambitions. have a listen. >> i think apple is showing people through car play what a vision of the dash could look like and what integration when you bring all of these smarts into a car, all of the conductivity come out of the apps, what a car can transform into when you stop continuing to try to make an iphone be the interface to the old car systems. software is very hard, and when these car companies see that, they go oh my god, apple really understands software, and it really shakes them to the core. jon: for years we wondered if there would be an apple car. maybe not. but certainly apple in your car is a big part of the future, it seems. taylor: i will take apple in the car, at least for the time being. what did one of the analysts

tell me? one of the worst kept rumors i think on the street was that production of the apple card, so maybe we will get that sooner rather than later. i think to your point, the bigger issue continues to be the services business and building that moat around this ecosystem that this company has been so successful at doing, just hooking you in, and this might be another way to do it. jon: one of the things i have heard from a lot of analysts in reaction to this news is the fact that yes, they have some initial automobile partners, but if there are any holdouts out there, the reality is, do those players have the right patents, for example, to protect themselves if they don't want to be a partner? it does feel like, as apple makes its way in here to that point from citi on the possible revenue opportunity, that is something the traditional automakers who are very busy right now with electric vehicles are going to have to think about as well. taylor: we are looking at apple, wondered $45 a share -- $145 a

share. on a risk off day, text certainly the bigger underperformer. you are off about 0.9% or so on the tech sector index. a 30 year yield that is mostly unchanged. you see the 10 year yield mostly unch on the day. for jon erlichman, i'm taylor riggs. this is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

mark: keeping you up-to-date with news from around the world, here's the first word. i'm mark crumpton. we are awaiting remarks from president biden, who is set to speak at this hour in los angeles. the white house says the president is viewing the summit is a chance to tackle regional challenges, including migration, climate change, and economic disparities. the president's attention has been diverted by unrelenting crises, including inflation, the war in ukraine, and a baby formula shortage. president biden, when he begins to speak, we