>> the s&p near session highs. "bloomberg markets" starts right now. ♪ an over 2% rally. green on the screen for the third straight day. you are seeing a rally. we want to keep on what's happening. take a look at what the dollar is doing. you are seeing a weaker dollar. it's been a hallmark of the

movement. you can see yields are higher. they were higher earlier on in the session. we do see brent crude at a $107 handle. holy up 1%. across the board using the risk on behavior. conviction buying seems to be the trade of the day. let's look at individual movers. earnings season is upon us. the weaker dollar i was talking about, it made an appearance in some of the earnings stories. ibm concerned about outlook because of the impact the dollar might have on the bottom line. similar story with johnson & johnson. they were beating across the board. then it comes to the dollar. a lot of exposure working against them when it comes to being a multinational company. the oil story helping halliburton. record profit for that company.

intraday. a more fundamental story. twitter more progress on the court case. a judge saying the trial date will start in october. twitter wanting september. elon musk want to get to start in february. looks like the market is saying twitter might have the upper hand. shares just shy up 4%. let's go to d.c. the 10,000 small business summit is underway. they face challenges when it comes to cybersecurity. annmarie hordern joins us with a special guest on the topic. annmarie: i am joined by jen easterly, director of cybersecurity for america. you got this job, unanimously voted in the senate. you worked for the obama white house and bush white house. you know a lot about protecting data in america.

recently you and the fbi put out alerts making sure the private sector was prepared for hacks from china, iran, korea. what happens after that? what if these private companies are hacked? jen: it is great to be here. it is such an important platform with small businesses. we were set up with the newest federal agency about three and half years ago to be the cyber defense space. it's a recognition you have these threats from nationstates like russia, china, north korea, iran. also this proliferation and democratization of criminals that have access to malware because they can get it on these markets on the dark web. now you have proliferation of ransomware where you get malware on your computer. it locks it up in the criminals

want you to pay for ransom to get your data back. at the end of the day these types of threats are affecting all of us, large and small. the critical infrastructure americans rely on every day. we do respond when somata gets hacked. at the end of the day resilience is so important ensuring you are prepared for, updating your software, enabling multifactor authentication. one of my obsessions. and you are really putting a plan in place and exercising it. cybersecurity sounds so technical and difficult. we need to do a good job of simplifying it so small business owners can actually implement a cyber safety plan and have confidence they can protect their data and their systems and network. annmarie: that is the prevention side.

what happens if they are hacked? these are small businesses. they don't have the cash pile the weight like colonial pipeline. is that would you suggest, paying the ransom? is there a's 91 for cybersecurity in america? jen: the government recommends ransoms do not get paid. it just incentivizes more criminal behavior and it adds to the amount of money they have to buy infrastructure to create attacks. again, it may not sound sexy but it's about preparation and resilience. that is why we believe education is so important. education is the key. it provides so much information out there at our website. we provide no-cost services to small businesses who generally cannot afford cybersecurity teams so they can build resilience and raise the bar.

if they do get hacked, they can call us. or, call the fbi. we work closely together. with cisco we have a growing field force in every state where people who suffer a cyber incident or compromise can get help. great question about 911. we are incubating some cool ideas. one is in austin. we are trying to put together a partnership hosted by the mayor where we bring together cybersecurity to help when businesses get hacked. a 311, not 911. if we can incubate this and scale that across the industry, we can help everybody raise the bar on their cybersecurity. annmarie: microsoft put out a report about russia, targeting a dozen organizations in america and 42 countries around the world.

how devastating where the attacks from russia? jen: they were very significant. it's an ongoing cyberattack in ukraine, some of which bled over to europe. i'm encouraged by the ability of the ukrainian cyber forces to be able to hold off these attacks and prevent them from having significant damaging impacts on their critical infrastructure. while we have been concerned with this potential attacks against critical infrastructure here at home. that is why we put of campaign so businesses large and small and individuals understand the threat and have information they need to mitigate risks to themselves, their families, their business. that is what we mean by shields up. we need to raise the bar and protect ourselves. kriti: i want to ask about preparing for the midterm election. how are you making sure you were fortifying america's electoral

system from these outside or potentially domestic cybersecurity threats? jen: it is the risk manager for election infrastructure security. we all know the federal government has not run elections. it is run by state and local officials. our job is to work with secretaries of state, local election officials to have the tools, resources, information they need to protect their infrastructure from cyber threats, from physical threats, threats to election officials, from insider threats, scams, threats of misinformation and disinformation. we work hand-in-hand with those officials. i was just in louisiana for the national association of secretaries of state conference. we have a great relationship across the country. we are a nonpolitical, nonpartisa entity. i worked in the obama administration and bush

administration. i'm an independent and retired army officer. we work with all parties to make sure they have what they need to be able to protect their infrastructure. and what is most sacred to us as citizens, our ability to have confidence will be go vote at the ballot box that our vote counted. annmarie: a very busy agenda for you. thank you for joining us, jen easterly, director here in america. dealing with cybersecurity and outside threats like russia, iran, north korea and china. kriti: annmarie hordern, thank you. time for the first word news with mark crumpton. mark: health officials are calling on european countries to beef up covid monitoring and bring back curbs to tackle the resurgence of the virus. the world health organization is warning of a challenging autumn and winter and asking governments to promote mask wearing.

the number of cases in europe has tripled in the past six weeks, with almost 3 million infections reported last week alone. gasprom is going to restart exports to europe on thursday at reduced capacity. bloomberg learned shipman will resume when maintenance ends but remain below normal after the russian gas giant declared forced is your on some european clients. a final decision needs to be made by the kremlin. president biden is signing an executive order today aimed at punishing countries that kidnap or wrongfully detained u.s. citizens. the order directs the secretary of state to identify foreign government officials involved in those detentions so they can be targeted by consequences. the administration is under pressure to do more after russia arrested brittney griner in february and accused her of trying to import hash oil

through vaped cartridges. the federal reserve says michael burns has been sworn in as vice chair of supervision. it is the first time the board has a full complement of seven governors since 2013, as well as being the top cop on banking, he will vote on monetary policy at meetings of the federal open market committee, which is expected to raise rates again by 75 basis points when it next gathers on july 26 and 27. 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 am mark crumpton. this is bloomberg. ♪

>> what i don't think people expected was the magnitude of losses that would show up professional institutions' balance sheets. that caused the daisychain of effects. it turned into a credit crisis with complete liquidation. huge damage to confidence in the space, the infrastructure of the space. kriti: this is "bloomberg

markets." that was mike noah gratz -- novogratz. let's bring in william quigley, cofounder of tether. thank you for taking the time to join us. the idea of a full fledged crypto credit crisis. d perceive something like this? william: well, there has been. most of that has been precipitated by the event of leverage in the system. it was mostly opaque. that is because this was -- it has been confused as being decentralized finance debt. every d5 platform -- defi. this was centralized finance companies that were masking how much debt they had. once they got in trouble they had to liquidate. they put a lot of pressure on many crypto, not just bitcoin

but others as well that are less traded and actively traded. we have not had something like this before, this much debt. a lot of different people are to blame for it. there are lessons as well. defi works. it is transparent. people can see where organizations are putting money in. kriti: let's talk about the technology. we had terra break its pegs. his tether next? -- is tether next? william: terra broke. his tether -- is tether next? william: no. fundamentally tether is quite different from algorithmic stablecoins. you have stablecoins that are backed by fiat, one-to-one. that is tether.

then you have stablecoins that are backed by another crypto asset. an asset the issuer does not control. that is like maker dow. you might back that with etherium. the third and toxic ones are stablecoins that are backed by a token issued by the creator of the stablecoin. that would have been terra luna and those don't work. we thought about that creating tether but we knew it was too complex. i don't for see problems with tether, because it is backed by either dollars or dollar equivalent assets. kriti: the collateral for tether, i'm looking at the reserve breakdown tether posts on their website every day. 85% are coming from cash and cash equivalents. 50% of that is coming from t-bills. i'm worried about the connection between the potential collapse in tether and the broader

financial markets given its relationship with the treasury market. william: i would just say stablecoins are very important to the crypto ecosystem. that is because any time a token is traded and the number one pair against any token traded his tether, there must be one side of the trading pair that is stable. otherwise you cannot arbitrage. tether is a stable token you can do that with. it is the reason it is the most traded crypto on earth. something like $30 trillion annually. tether has been through many, many years of very difficult crypto markets. it has stood the test of time. if you look at simply how much is traded, you would probably

say the crypto people seem to think it is a pretty reliable stablecoin. the algorithmic tokens, those had a lot more problems. you could not necessarily understand -- public markets cannot understand if there collateral would be supporting the token itself. in the case of terra luna it did not. kriti: the question of stablecoins broadly -- the ecb, pboc looking to launch digital euros and yuans. what is the appeal of stablecoins if they do that? william: good question. i thought this for many years. all the world's largest economies would ultimately tokenized fiat. tokenization is the -- it has no downsides at all compared to traditional digitized cash. what is the need for private

stablecoins? it is simple. we need innovation. any time central government or any big government runs something it is unlikely innovations pace will keep up the pace the market wants to develop. that is why we need private stablecoins, so we can continue to develop new versions of them and continue to improve upon them. that is what is happening now. central governments are looking at what tether did and saying we should do the same. i think that is the right path. kriti: william quigley, cofounder of tether, thank you for your time. always too short of a conversation. we will have to have you back again. 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.

kriti: this is "bloomberg markets." we are a few hours away from

netflix earnings. they surprise investors in april when they had a big subscriber loss and warning the worse was to come. joining us now is immediate analysis. everyone will ask about subscriber counts. i want to ask about the ad business. what we can hear from the earning calls about this new ad-based is this? >> great question. there will be a lot of questions for the management team on exactly that. we saw netflix have this complete about-face on its advertising. they have been vehemently opposing it for decades and now they have capitulated and said we are ready to do ads and they announced a partnership with microsoft. there are no details. we are looking for clarity on when they will introduce this new ad tier and with the price point will be in if they will do

it across the world or just part out in a more mature market like the u.s. and then take it further. we are awaiting a lot of details. if they can really execute well on this, this is a really good way for them to reintegrate that subscriber story and get more clarity on the subscriber narrative going forward. kriti: let's bring it back to the subscriber narrative. when it comes to the breakdown around the world in the last earnings call there were conversations about losing subscribers in russia, eastern europe. in terms of geographic hotspots, what can we expect? geetha: what we have seen is market maturation across a lot of the developed economies. you look at the u.s., european markets, and you pointed at russia. there is so much password sharing and some of those countries. they probably reached our get

maturation in that region. the only growth pocket now for them is asia. in asia, yes, there are a lot of broadband households. 200 to 300 million. the opportunity is huge. you have a very price sensitive customer. they are going to have to change things up a little bit to make the netflix product appeal to a much wider customer base. kriti: thank you was always. we will have full coverage after the bell of netflix's results. you will get all the inside. let's get a quick check on the market. s&p 500 keeps marching higher and higher. session highs again for the s&p 500 for nasdaq and the russell 2000. this on the surface looks like conviction buying. we are seeing higher volume. if you look at the tsx, the s&p 500 is outperforming the tsx. you are seeing a broad valley

when it comes to all sector bases. the volatility, you are not seeing it in the bond market. 3.21% on the 10-year yield. i am kriti gupta. thank you for joining us. ♪

mark: now keeping you up-to-date with news around the world, i'm mark crumpton. multiple fires are burning across europe today. the city's fire service has declared it a major incident in a sign of how record-breaking he does causing chaos across the u.k. and london. temperatures at heathrow airport surpassed 40 degrees celsius, 104 degrees fahrenheit for the first time ever. the heat has sparked deadly wildfires in spain, portugal and france. the head of the u.n. weather agency says he hopes the heatwave sweeping europe and record-setting high temperatures in the u.k. serve as a wake-up