>> kriti: welcome to first word news. gas supplies were halted in europe from the russian pipeline. the ukrainian president expressed gratitude to president biden for what he called another on presse tate -- unprecedented aid package. nancy pelosi says members of congress will not be intimidated by the reaction -- by china's

reaction to taiwan .global news, and he's acting like a scared bully. he will want to be reelected. kriti: she stopped in taiwan and was conducting military exercises. i want responded by holding its own exercises. kailey: there are contenders in a heated election battle that will help decide control of the senate for the next two years. wisconsin is one of the five states that will maintain control in the 50-50 senate. tennis star serena williams plans to retire after playing in

this month u.s. open. she's 123 grand slam titles and has won almost 100 million dollars in prize money. she wants to have another child into other things. global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. jon: welcome to bloomberg markets. caroline: a recent conversation we have two day, we are off by 5/10 of 1% with the chipmaker coming out with worse than expected results.

money is being pulled out of the front end of the bond market. two-year yields are off by about seven basis points. bitcoin is falling. jon: if we look at the individual movers today, it's got to be a stock specific story. the bio group is looking to hit the finish line. whether it's what we heard from micron which does -- which is down about 5% warner ouija and cruise lines is impacted the travel sector there. it's down 11.5% and we will listen to what companies have to say after the bellum we will would be watching names like

coinbase which is under pressure. caroline: investors are awaiting earnings and the key macro data. the market needs to keep an eye on the bigger picture. >> we are focused on the roll over in inflation. the bigger question is what's next. we were talking earlier and i think markets are entirely too comfortable with this notion where it's going to be straight line smooth and easy. i think there's lots of room for rates to move higher and lower in credit spreads to be much more volatile and wider unbalance. jon: let's get some more perspective on that.

the morgan stanley head of microstrategy is joining us stuff do you see the volatility as our normal going forward? >> i think markets could remain volatile if central banks that are reacting to all of this data continue to change their tune or at least sing from different hymnals. i think that's probably likely to inject volatility into the market. caroline: we are looking at a picture of the ever important negative yield curve causing the inversion. are you baking in some sort of recession? what is the bond market signaling now? >> i think what you see in the market prices is the idea that the fed is going to raise rates

to do some damage to the demand side of the k -- of the equation. with thought they made some progress in july but the payroll number we got freddie calls into question how much demand destruction the feds tightening of monetary policy and other central banks have achieved so far. jon: let's go short term and heading into tomorrow, the inflation report, giving everything you said, what are the demand in the market you'll be watching for? >> it's a foregone conclusion that cpi inflation will come down. i will be focused on the core inflation number. the consensus is for 50 basis points but that's not the type of inflation number that is going to do the fed any favors or will make them feel good

about themselves. it's still a strong cpr -- cpi number. we will see what's going on when you strip out the outliers. caroline: this is a global inflation flight. you got the european story of course and to a lesser degree the asian story. from your perspective, how does the dollar fare and how does mullen -- monetary policy in the u.s. differ from the rest of the world? >> typically, when we have global growth on the downtrend which is what appears to day, is typically an environment which benefits the u.s. dollar.

couple that with monetary policy in the u.s. which probably needs to be more restrictive than what you currently see priced into the market stop it's a good set up for the u.s. dollar going forward particularly in parts of the world where the growth outlook is deteriorating by the week. we like the dollar versus the euro. caroline: the index is coming off of its highs stop thank you so much for being with us. coming up, a company that navigates the volatility is out with his latest earnings result. how the franchises are dealing with supply and more. this is bloomberg. ♪ >>

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caroline: this is bloomberg markets. the owner of i happen apples be -- in applebee's with earnings

numbers. earnings were down a little bit compared to a year ago but cautious optimism seems to be in the equation most john peyton is coming to us. as you navigate a backdrop that is challenging, how do you see your diners responding to the inflation worries in the economy? >> thanks for having us. what we have proven during the last quarter is that our brands have been very resilient because they are known as value-oriented brands. what we've seen in terms of traffic going the quarter was surprisingly strong given what's happening with gas prices and the cost of going back to school. april and may was strong. we are reiterating our guidance for the rest of the year.

we are encouraged what we are seeing with the declining gas prices. jon: you talked on your conference call about the size of the check. once people are coming into the restaurant, it sounded like you are not seeing too much a change in what they order. >> the average check has been the same for the first six months of the year for both rands. we did -- for both brands. he did raise prices so there are pricing pieces which shows us there has been a little bit of remixing where a beverage might become water or an app -- or one appetizer became too. one of the things we are seeing broadly in the economy is that consumers will continue to spend on experiences and community.

people had emerge from covid and are seeing people while they are reluctant to spend on goods, we are in the community business. caroline: as the community comes into dine on your brands, how are you serving them? maybe the tightness in your labor market was easing a little bit. what about hiring or having to cut staff? >> it's easing a little bit. we are at about 90% of staffing compared to 2019. that's been steady for the last several quarters. you are right, we have in the last couple of months seen an increase in applicants particularly for jobs like cooks. we are just beginning to see an improvement there. our franchisees are leaning into the more flexible hours and slightly increased wages and

training and career development. we are leaning into training and technology that makes our franchise more efficient. jon: we should clarify as you often do that the asset light model means you work closely with the franchisees but in many cases on the operating side, they are very much playing a large role in the business. another key area for you is the idea of these virtual brands. some people call them ghost kitchens. can you tell us how much of the future of the business is tied to opening virtual locations? >> i am very bullish on virtual brands. virtual brands are brands like cosmic wins at applebee's were

thrilled cheese that only exist on the delivery app. they are prepared at and i hopper applebee's but they appear to the public is that separate brand. a ghost kitchen is where we are serving applebee's or i hop out of the kitchen that does not serve guest directly but is for delivery. for virtual brands, i hopped has thrilled cheese and a thousand restaurants. that's called incremental revenue for our franchisees. its low capital, you can target it toward a certain segment or dial it down up it's not succeeding and try something new so it's equate -- it's a great way to add revenue in a flexible way. caroline: talk as -- talk to us about your investing and how confident you are in this market. are you bracing for a recession

or feeling that you can drive the business onward and continue to expand? >> i can't predict if there is a recession coming. what we focus on are the metrics we now impact our guests and their traffic at our restaurants which is the cost of gas, the cost of going back to school. based upon our strong second quarter and the traffic patterns we are seeing, we are cautiously optimistic for the back half of the year. we really believe strongly in while we are playing strong defense right now, we continue to invest in the future. our investments in technology continue, our investments in menu innovation continue, ihop is gearing toward big investments. we have now hit 2.4 million more

customers which is new to us. jon: thanks for breaking it down for us. thanks for joining us and we are watching the road ahead for good our eczema speak with the cofounder on their big quarterly results and more specifically, the resolution of a notable grocery dispute next. this is bloomberg. ♪

jon: this is bloomberg markets. it is time for what it's worth, 25%, in may, good rx said a key grocery store operator representing 25% of its transactions was no longer accepting its discount cards in the company says that issue is

resolved. the stock popped on that news. let's talk to the cofounder and coo of good rx. looking at the reaction to this, one analyst suggested maybe it's a permanent resolution, how would you characterize this? >> we are very pleased to have this issue addressed. we have existed for over a decade had had an edible relationships with retailers. we are shooting commercials right now. it's been a wonderful track record. we were disappointed this happened and it was a tough quarter but we are back on track and it will take some time for financials to reflect the re-acceptance of good rx but we are able to certify relationships with them. caroline: you have held back on

the financial forecast for the full year but can you give us a sense of whether that 40% margin profile, is that going to be back on the agenda? >> it is definitely back on our agenda. i'm proud of financial performance. it is our job to get back to that. we are laser focused and literally doing a review to make sure we have a stable pharmacy network and need to grow the company with great products and new businesses. jon: it's one of those times were many of those customers are looking for cost savings wherever they can find it. what about communicating with your customer base? what will you do on that front? >> i am a product guy and i am

so interested in this. we have a representation of ill bottles on the app. you can see the doctors memes and know when it's time to refill your prescription and have your prescription number which is orton. we can talk to a consumer from the diagnosis up to ongoing management of the condition stop there are lots of great products on the horizon. caroline: how do consumers feel about your data collection? with this pressure your revenue going forward in any way? >> i started this company because i'm fanatical about fixing our health care system and we need to know a little about the consumer to help them. the more we know, the more we can reach out and help you find

a primary care doctor we are focused on trying to do best by the consumer and the more you tell is about the issues you are facing, the more we can help. i think we are investing to try to help these points that consumers have and that's where our focus will be. jon: caroline was talking about the long-term focus but when you are doing something that could be seen as shareholder friendly on the stock buybacks and watching your spending, how do you navigate that? >> we want to be a diligent, focused company that continues to perform as we have in the past. we have to be focused and billed incredible, innovative products and i'm proud what we done with their pharmacy information

portion. we are keep trying to engage with constituents and keep improving. caroline: thank you for spending time with us. the co-ceo and cofounder of good rx. the focus of an extraordinary move after hours yesterday, more than 20% higher but a scumbag down again. -- but it has come down again. jon: we started this half-hour talking about inflation numbers that everyone is anticipating tomorrow and if there is a continued message of high prices and aggressive fed going forward and how they will feel about the technology -- technology story. caroline: today, we are up across the curve on the front and. it's changing focus on the yield curve with a steep inversion.

jon: the energy price right now is hovering around flat line in a choppy session in the root market. this is bloomberg. ♪

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>> keeping you up to date around the world. ritika: energy security took another hit of the russian to hungary. slovakia and the czech republic were halted because sanctions prevented payment of a transit fee. russia blamed sanctions. the subbing breaking several days -- u.k. is breaking several days, gas shortages, leading to blackouts for industry and even households. under the government's latest worst case scenario plan, britain could face a capacity

shortfall. even