>> the u.s. to run of justice has concluded its look of former president trump's home. a revelation came in a court filing with the lawsuit to have a third party review the material. there is a hearing set for thursday. u.s. navy warships have sailed the taiwan strait for the first time since house speaker nancy pelosi's visit to the island. the strained relations from the visit lead -- led china to --

the european union planning urgent action to damping -- and dampen soaring energy prices. >> the skyrocketing electricity prices are now exposing for different reasons the limitations of our current electricity market design. mark: she added the eu is looking at a structural reform of the market. singapore is taking steps to attract foreign workers to ease the tight labor market. new rules will allow foreigners earning at least $21,000 a month to get a five-year visa. exceptional candidates in sports, science and academia who don't meet the salary criteria are also eligible for

singapore's long-term visa. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. >> an update on the markets pin the s&p 500 down .1%. the futures were down this morning over 1%. now look at the crisis period much going on. you look at the two year yield, it is only moving marginally. 10 year yield is where you see

more action, looking at 3.1% on the 10 year yield. as yields go higher, you see that dollar following. it was higher earlier in the session. jon: looking within the s&p 500 to your point, close to a flat day. the price of oil moving higher has fueled some energy stocks. you have warren buffett's recent favorite, occidental petroleum up 4% today within the tech landscape, with the nasdaq 100,, up more than 16%, to the downside, some of the regulars like tesla losing. on company specific, bristol-myers squibb up more than 5%, tied it to trial results for a preventative

treatment on strokes. makes results weighing on the stocks. kriti: one of oppenheimer's is one of one of the most bullish strategist and he is sticking to the call. >> stocks can go up as interest rates rise and there is concern over inflation. i got into this business in 1983, so i have been through a ton of cycles. in the beginning it is tough and the naysayers always say the fed is going to fail. kriti: the case for bull on stocks. >> we are seeing this last night going into the morning. the s&p 500 trading above its 50 day moving average, and that will be a key technical level.

we are seeing tax still salt -- tech still sell off. now it is said that as long as the s&p 500 stays above it is ok for him. if it goes below, he will reassess. that is an interesting term. jon: i am glad you mentioned the technology sector. what have you been hearing about folks on wall street on the bolt versus bear -- bull versus bear over that hard-hit sector. jess: mike wilson morgan stanley doesn't think it just about the federal reserve also corporate earnings. based on morgan stanley's projection, they are still seeing earning projections

coming down even though second-quarter earnings season was better than expected. bank of america echoing that same sentiment. if you look at mark: at jp morgan, sticking with the bu ll case, for 800 level on the s&p 500. in 18% rise from the close on friday for the s&p 500. he did mention that up to seasonality factors in the midterm elections, that will call some volatility. jp morgan they can we will see potentially a rebound in the second half. jon: thanks very much. let's go deeper. capital managing director

joining us. what can you tell us about positioning? shaheen: --amy: we continue to expect volatility will rise from here. there are a lot of other reasons we think the end of the year will drive it. historically that doesn't tend to be good for stocks. if you look the vix, september and october is where you usually see it rise, at least for the last 10 years. katie: is at work -- worth -- is it worth hedging? amy: volatility has misbehaved. if you look today, even though we had a downdraft in the market, it is about the path taken to get there.

i think that is why going back to question, you haven't really seen that many more hedges placed. that is not to say positioning will not be put aside as we get into the year. if you think about it, the set up is concerning because of the lack of placement and hedging needs people will not be prepared to lean more towards the downside force of -- december. jon: as we start to see some stocks pop off the lows, you hear people say they were short squeezes and people betting against a lot of names. as we start to get ready for fall trading, do you have a sense for where that trading is right now? sean: --amy: i will talk about what my colleague talked about.

she said it was more than the air pocket rather than build up. a lot of that has to do with the volume we saw in august. as you get into september and october with people returning from vacations will be less so. with that happening, i think we start to see more displacement of hedges. i think people have learned that if you are going to do any positioning with hedges, there has to be a catalyst, and we are going to get that with the september fomc and the midterm elections. kriti: we have a massive risk event coming up, the u.s. payrolls. a lot of people thinking maybe we will see signs of a loosening labor market. is this a pivot point where we are starting to see bad news in the economy as good news for stocks? amy: it is funny.

if we rewind to this point last week, i think people felt the same way about jackson hole and hoping for that is bad news good news. at least last friday it was just bad news. we get that positioning point again. it is tough to say how these moves are with the air pockets. when you look at the derivatives rocket, people aren't placing any hedges against the payrolls number and i think part of it is because even with the moves you are seeing, investors were not necessarily all that long and didn't benefit from the june rally and it doesn't pay to hedge right now. jon: i am going to go as step beyond the question on the payrolls report. you mentioned midterms. give us a sense when you are in this part of the cycle what can happen in the markets. amy: if you look historically to

the past 20 years or so, one thing we have learned about the derivatives market as they are really bad at pricing political and geopolitical events and they were terrible at pricing ukraine and horrible about presidential elections and will not be great at raising term elections very partly because we are not political experts and that is one reason you see that rise in volatility. i think that when you look at what will happen, i think you are not seeing the placement of hedges ahead of these as you have in the past. it is almost like people realize it is very difficult to carry the hedges. if anything is going to be displaced, it will be very last minute. kriti: amy wu silverman

, we thank you for your time and insight. european officials planning emergency action for energy prices. a look at what can be done and how it will affect the european economy. this is bloomberg. ♪

kriti: the eu is planning emergency intervention to try to halt soaring energy prices which have jumped tenfold in the past year. the european president seeing skyrocketing electricity prices says the limitations of the current market design. joining us is the climate -- you're at our price caps the only option? >> we don't know that the european commission is taking unprecedented steps but it is going to have some sort of short-term intervention and it

will have a profound effect on the electricity market. the eu needs to decouple the power and gas prices because the cost of electricity is getting unbearable for consumers and businesses. jon: you talked about the increasing number of member states talking about price caps. can you elaborate more on that? >> the president holding the talks and the second half of the year is going to call an emergency meeting of the energy ministers on september 9. the ministers will take proposals from the european commission on what to do with energy prices. they want to put cap on gas prices but not all gas prices but for power generation. how it will be done and whether

this is the tool european commission decides to put forward remains to be seen. we are waiting on a proposal from the european commission that may come out as soon as this week. kriti: we have heard about the challenges that come with price caps but what a lot of people don't know about the european energy, as gas prices stay high come sometimes it means bringing some prices higher, like spain and portugal and the decoupling of those two grids, is that a possibility? ewa: in decoupling there will have to be a new formula. they are saying that those two private things have to be decoupled and the link has to be broken whether this is feasible and how it can be done whether there will be cuts or other mechanisms remains to be seen. jon: a really hopeful breakdown.

covering the story of what happens on the energy front in europe. let's turn to the bloomberg news chief correspondent liz mccormick, who has been covering the action in the bond market. obviously so much discussion about what is happening with u.s. treasuries, but let's talk about the market view on ecb strategy and what you have been seeing and hearing from people recently. liz: after all the speakers at jackson hole, a group known to be more hawkish, reiterating chairman powell that they have a real inflation problem and they have to be consistent with their hawkish policy and keep bringing rates up. you have the market in europe pricing in 50-50 odds of possibly 50 or 75 basis points after the next ecb meeting in

september r.i.m. if i read the data -- in september. if i read i data right, they are going to have a real problem. the markets are pricing hawkish. kriti: it almost feel like they are ripping a page out of the fed's playbook despite the discretionary call are way stronger than here in the united states but i am interested in the u.s. price action because you are seeing markets anticipate the more hawkish talk , 70 five basis points potentially here in the united states. what does that mean for two-year yields? is that the trade at play? liz: the curve keeps flattening. i did hear some people saying, two-year at 4% is attractive to buy. i think the people feel like with what powell had to say, he

is not letting up he had a short but not sweet statement the meeting that we can't let up and we don't want to be the arthur burns of this era and a stop to soon and let inflation get out of hand. the market will price that the 75 in and even though the fed is still trying to say they are not crushing the economy and that is there not coal -- not the goal, a lot of people are saying we will probably have to have a recession the early part of next year. that is why the curve is a flattening. it is like someone said the message was pain. powell said consumers will have to take pain and businesses will have to take pain. credit spreads could widen more, maybe higher yields. that has to roll things over after a while.

meanwhile, all of us are fighting high do you buy this or maybe not that. jon: thanks very much, liz mccormick, breaking down the realities of the bond market. we are watching the s&p 500 after the challenging start to the day. slowly moving the positive territory. flat on the day. we will talk more about the markets, coming up. this is bloomberg. ♪

jon: time now for what it's worth. today, it is not just the fed, european central bank, inc. of canada fighting inflation, it is a task for all global central banks, including the bank of korea which recently did a 25 basis point increase last week.

the bank of korea governor spoke to bloomberg in jackson hole about the goals of the policy. >> we are not exactly targeting exchange itself for the interest rate cap that in itself is not our prime policy objective. the higher interest in the united states will have on depreciation and that depreciation will increase our inflation rate. i think a large difference is one of the ideas but we have to allow the exchange rate to move and focus on our own inflation rate. >> you earlier said the bank of korea would reach 3% by the end of the year and said that was reasonable. how does that look now, equally reasonable? >> i think chairman powell's

remarks were in-line we don't have to revise at this point. >> will you continue to opt for the more gradual hikes or would you consider doing another 50 basis point hike? >> at this point, given the uncertainties, i think it has to be databased. if the inflation rate continues to be near 5%, like chairman powell, then the bank of korea should also prioritize. kriti: that was the bank of korea bank are in are speaking to kathleen hays, wyoming. the s&p 500 choppy, back-and-forth. about flat. the underperformance happening

in the nasdaq, down .4%. in the yields, two-year yields at the highest back to 2007. this is bloomberg. ♪

mark: here is the first word. the european union can offer ukrainian forces new sniper for officer training as part of the new mission. they plan to propose this in a meeting with minister was in prague investors tonight. bloomberg has learned iran has identified a specific training needs and that ukrainian soldiers have already been offered various training efforts. the ukrainian president is accusing russia of trying to create a global sense of fatigue about its invasion. that includes