taylor: stocks are searching for answers this month, bloomberg markets starts right now. kriti: we are actually in the great. to see the stock market reverse it is interesting. where is the money going? treasuries see a bit lower of four basis points on the 10-year yield. risk off seems to be the mood.

crypto -- crude is dropping 4%. how much of this is geopolitical tension weighing on the market? investors are on edge, there is a a planned trip to taiwan by nancy pelosi. it is ramping up tensions between the united states and china. a strategist weighed in earlier about the trip. >> i think it will be an intensification of what has been evidenced for the last several months. this move from nancy pelosi comes up u.s. intelligence has been warning that they believe that china is closer to making a move on taiwan, perhaps in the next 18 months than it has been for some time. that will cause investors believe the war in ukraine may prompt china to take a rest.

signals coming from washington and the supreme court about the strength of the united states and u.s. democracy are being watched very closely to see if washington can respond to numerous threats. kriti: we have put it ahead of nancy pelosi's trip to taiwan, emily in washington joins us. geopolitics once again, it feels like a bit of deja vu from the trade war pre-pandemic. what is the point of nancy pelosi's trip to taiwan? >> she was asked about this at her press conference, she said it was important to show support for taiwan. we know that when president biden talk with xi jinping last week he restated the current status quo for taiwan, the u.s.'s position had not changed. a lot of questions a d.c. and across the world about if china

could potentially try something with taiwan like we have seen a rush to ukraine. that was a concern this year. this trip was supposed to be in april but that was canceled after she got covid. every word that pelosi speaks will be analyzed, the future? is china said they are going to be retaliating if she does take this trip to taiwan. what does that actually look like and what could that actually mean for the speaker? kriti: dive into that for us. this is not the first time that a member of congress has made a trip to taiwan and we have seen a wide range of reactions from china. >> the number three highest ranking official, the first time a speaker of the house has been

to taiwan in 25 years. it does send a strong statement, you saw the u.s. military come out when the trip was reported, saying that we have some security concerns about this. this. all of them have backed [indiscernible] --

>> part of that is a concern that potentially if china tried to take a move on taiwan the u.s. may get cut off from some of the semiconductor manufacturers for the impact a number of industries. the defense industry, this is seen as a matter of national security. that is one of the reasons you saw a senators and congressmen move so quickly to actually get this bill through congress and to president biden's desk. kriti: we thank you, as always. the u.s. is tightening restrictions on china's access to a chipmaking gear according to two major chipmaking suppliers. all things expert when it comes

to chips, ian, thank you for joining us. there is a ban on supplying equipment for chipmaking that are 14 nanometers and below. if you eliminate that production capacity, where is the world going to get its chips? >> it is a complicated situation . the u.s. is a major controller of semiconductor technology, particularly through the equipment makers. china is trying to get into the chip industry. and makes a limited amount of basic stuff. the world is going to get its chips just fine. china is not going to be able to produce as many of its own chips as it wants to do. china is of the largest market for semiconductors. kriti: it is something that the united states is trying to print onto domestic soil.

a $52 billion chips will passed by congress by 10% of the entire industry. how effective is it going to be? >> that is difficult to say. $52 billion a sound like a lot of money. for the chip industry, that is not very much. they are spending $40 billion a year on new plants and equipment. will it help? . yes well and make things more hospitable? yes. is it the kind of money that changes things overnight? absolutely not. kriti: the labor, talent, programming that comes with th at. talk about the additional costs when bringing labor to the united states. >> it is not a big factor because they are not that many

people working in chip plants, it is automated. the people who can do the development of technology and you need people with high degrees and applied chemistry. electronic engineering, this country has not been producing enough of that talent pool on his own for many years. what has a chip industry wants is more investment in education to produce that kind of talent pool so that we do not have to rely on importing as many overseas engineerd as we -- engineers as we have been doing. kriti: we have micro devices reporting tomorrow, what can we expect? >> it will be tough. if we follow amd's logic it will be fantastic. kriti: that is something we keep an ion. thank you as always. it is time for the first word

news. mark: ukraine has made its first grain shipment since russia's invasion. a cargo ship loaded with corn left for lebanon this morning. it is one of the biggest wheat, corn, and vegetable oil suppliers. black seaports were blockaded by russia and shaken the world trade and has threatened a world food shortage. nancy pelosi is to visit taiwan on tuesday. she plans to make the trip defined chinese authorities, warning of consequences if she does. it would be a landmark move and risk military confrontation given china views taiwan as his territory. she would be the first speaker to visit taiwan in 25 years. jack lew is weighing in on the state of the economy and whether a recession is avoidable.

have a leaves growth will slow in what he says was not a normal moment. >> i think we have never seen an economy come out of a shutdown like this when the world is in the unusual and unique spot that it is in. i am optimistic that this can be managed without having a full-blown recession. it is not out of the question. mark: he spoke with bloomberg television today. global news 24 hours a day, on-air and at quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪

kriti: pinterest is due to report is earnings. the shares are higher today. it has fallen more than 45%. this year. the platform has been feeling the pressure on digital ad pricing. and no user growth -- and low

user growth. ed ludlow is also getting married, i bet he is using pinterest quite a bit. >> pinterest is interesting. we have seen deceleration in topline growth and a worsening. the big difference with pinterest is that they make less money per user than their peers. there is a gap in that. the topline growth, 8.5%. we want to know what the outlook is in the second half of the year. kriti: they are undergoing new management as well. >> a new ceo, a former google executive. he will give it to video and they want to see how that change in execution can help get this company back on track. i think that there is a lot of excitement on the street from that.

elliott and management has taken a stake and they are holding talks with the management of pinterest. it will be interesting if that comes up as a question and what the end goal is. kriti: that is something we are watching. that has been in more insight and bring in alex, the founder of crossman plus, a digital ad creation platform that is partnered with google, meta, and talk. he buys some of the largest investments in the tech space. it walk us through the of the pinterest versus other social media peers. -- through the differences of pinterest versus other social media peers. >> it is hard to change user behavior and people typically are using pinterest for aspirational things. they are pinning mood boards. there is not a lot of

communication that happens on the platform. with the economic platforms we are seeing, the first budget they have is grand budget. they are not returning insurgent level of investment. use the advertiser -- you see the advertisers go to platforms with high intent to buy and meta has performed well after apple tracking changes. using exploratory budgets on tiktok. kriti: it is also entering the gaming space which is a social media companies have tried to do. will tiktok get this right? >> they have a pretty good chance. their platform is pretty engaging, everybody became a gamer over covid. i have faith they can figure it out. as a budgets are shifting to get the big map on tiktok. tiktok is trying to find a way,

recession proof moving forward. people play games when they are happy, sad, it is an escapism mechanism. that is what they are thinking about. how do we help the gaming market? by building their own game and getting into game it, they can capture a lot of first party data and user behavior will be impactful and drive gaming advertising. kriti: capturing the first party data, isn't that something that meta and a snap chat to do as well -- and snapchat was able to do as well? >> they let go of the initiative and they are leaning into cloud gaming. tiktok is trying to find its way right now. it has grown so quickly, it is trying to figure out what is the right ad products for their advertisers. hardly do we build this at product or double down and leaned more into gaming?

kriti: what do you do with the actual stocks of the social media companies? >> i have been bullish on facebook. i think we can turn it around and make the right moves. tiktok is up and coming and they have a lot of upside on their platform. snapchat has been a more difficult. they did not find results. they are less inclined to test again. platforms like snapchat and twitter and a few others that are historically more brand focused, that is where budget is going to get cut first. you will see a lot of budgets shift back into google, facebook, as well as tiktok or export rate budgets. the gaming people will go into areas that just emerged. kriti: aren't you worried about the demographic trends? isn't a bet on tiktok almost an

anti-bet on meta? >> tiktok has owned the gen z market. meta is trying to rebound with reels. instagram is driving a ton of user engagement. meta can rebound from this. tiktok is still exploratory. we will see how they are leaning into gaming and providing results for advertisers. every gaming advertiser bribing for mobile app and soul is tested on that app. kriti: what about regulatory issues? tiktok was a major subject of scrutiny. it is going to come under fire again in congress. any concern about that? >> that is the biggest concern. tiktok, there is more talks of china and other popular technology apps that have been

banned from china. the u.s. is thinking of doing something similar. we find a duality world where her is two internet's, china on the internet site and was in europe and the u.s. -- eastern side and western europe and the u.s. on the other. kriti: a look at the biggest business stories. sure is a point or higher after a double dose of good news for a few days, it has averted a strike by machinists that would have crippled its fighter jet factories. regulators have okayed plans for preparing tiny flaws in the 7-87. texaco will pay for a stake in fitness energy drink makers. it is getting convertible preferred stock in celsius. the company will also nominate a

director to serve on the celsius board. according to wall street journal, and could be worth $3 billion or more as estee lauder is a makeup company and the other company sells men's clothing and fragrances. apple is set to cap the high-grade on the market with dividends. this is bloomberg. ♪

kriti: the amount of debt that apple has issued since 2020, $44.5 billion. this is a huge deal. it is pretty normal for apple to have a big bond issuance once a year. they are also known for being able to time the market. that it back in august, july, of 2021 and they are doing it -- doing it again right now. they have this track record. every time the issue at this debt, you see the share price of apple increase one .2% --

1-2%. this is how much cash they have on their balance sheet. 17 $9 billion. -- 179 billion dollars. in light of the move, you are seeing the shares drop. the borrowing costs were enormous, big tech has been able to borrow money from the public at almost close to the treasury rate. that is how safe they are being. almost as safe as the u.s. treasury. this will be crucial. let us get a quick market check, the market was up most of the day, and that it drop. all of the money seems to be going into the treasury market. the risk off mess, take a look at this, it is showing up in crude. a 4% drop for that commodity.

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mark: president biden continues to test positive for covid and is continuing to feel well, according to a letter from his physician. dr. kevin o'connor said the president will continue to isolate while working from the white house. senate democrats hoping to pass a tax and energy spending bill by the end of the week without the need for republican votes. republican pat toomey told bloomberg's david westin today he would not support the inflation reduction act, even if he thought it would reduce inflation. >> no. not doing it this way. i am