mark: malcolm. france is preparing for a complete cutoff of russian gas exploits after saying that it will reduce delivery with some contracts. >> that is exactly what we are doing. planning various cuts in russia. so we will be prepared and we are working on this emergency plan. >> the government will extend aid for companies that are struggling with surging energy costs. a controlled shutdown of

ukrainian powerplant would be the safest option. artillery shells continue to land. meanwhile, monitors are said to assess the damage and account for the material at the reactor. a primetime speech will be delivered, slamming republicans for what he sees as a threat to u.s. rights and freedoms. according to a white house official, he will speak about the continued battle for the soul of the nation. he is trying to boost the chances of democrat in the midterms. a delegate this week, according to a statement from the minister of foreign affairs. the visit comes after blackburn led a delegation and a three day

trip. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton and this is bloomberg. >> welcome to bloomberg markets. >> a 1.3% decline on the s&p 500. take a look at the 10 year yield. only moved the volatility that we are seeing in the equity market. the equity market has largely responded to the dollar.

only up about .1%. a big move but perhaps what they are taking their cue from is the growth picture. shy. >> not leaving a lot of stocks in positive territory. you mentioned energy. we do have a few different company's specific flavor is. there were lowered expectations on wall street. we will talk about that, coming up. meme stock frenzy over bed, bath & beyond is cooling over another story today. the performance, to a certain extent, keeping wall street generally up the. pretty negative tone. you have something really

struggling on the nasdaq today. they are dealing with a lot of headaches and china, especially tied to covid. >> in addition to that coble -- global picture, we spoke with security about current market liquidity. take a listen. >> what i find most difficult to talk about is, last summer, they kept talking about market liquidity and i can guarantee that market liquidity is a lot worse. >> joining us to discuss, michael is back. $95 billion per month is what we are going by. how much of an impact does that actually make? let's we do not know it will

reflect the status of the economy, but between zero and 100 basis. we have just one previous episode. they will wait, watch and see what happens and they will react. >> i heard you say this a couple times today. quested looks like we lost him. wes it looks like the idea of experimentation -- you have a roadmap, i suppose, but if things get bumpy, maybe take a different path? quested depends on what happens. it could be a systemic problem or people could have to look elsewhere. they only have about 43.6

billion. that means that there will be more bills on the market, which means that money markets can buy them directly instead of going to the fed's repo facility. it may decline somewhat, but in theory, it will have a liquidity issue for the market. >> does that incentivize using that quantitative tightening in the future, if qe is becoming part of the federal reserve's playbook? >> we had to take a close look at it. i do not think they like having to manage that sort of thing. it is part of the toolkit, but there might be some changes. how this is going to happen and how this is going to work -- it

may change. >> like a science experiment. >> for more on this story, let's get a market perspective. the volatility that we are currently seeing. listen to what mike was just saying. there is a certain skepticism in the market about how much from the fed, but in terms of fighting with the fed, where are you on terms with that? >> we do not know why people want to fight the fed. they get them through a variety of means at a historic scale and they want tighter financial conditions. they are about to embark on

quantitative tightening. we are almost certain -- not 100%. but that alone should cause a risk off move. in the comments last week, markets have reacted in this ridiculous bear market rally. >> we learned a lot about the landings, but i'm curious about the size of this operation. it was not done completely. so i'm curious about how far the federal reserve is willing to go before it kind of stops and says, we need to take a breath again. lex 2018, it was not the economy

that cause a pivot. it was the fact that we did not have real economic inflation. not only economically, but politically. the signal at the time was less about equity selling off. it was really the all clear signal. it eventually ramped back up. this time around i'm of the pressure is so much stronger. economic inflation may have peaked, but it will take some time. the fed they will be draining their balance sheet. there are so many other democratized alternatives.

they do not need to fight the fed. they can actually embrace what the fed is doing. >> against a backdrop, before we go, we saw the s&p 500 rally before it started pulling back. the nasdaq 100 rally was well over. does that surprise you? >> not in the least bit. you had a technically driven bear market rally. they had to chase their benchmarks, but the fed was very forceful. it is clear that the only scenario they can pivot hard -- as they move forward to tighten, that means higher yields and wider spread. in an environment like this, focused on real estate that or

certain solutions that can create a low mortgage return, they are very difficult to time. >> i guess we are all looking back. we thank you as always. elon musk is using new complaints to try to scrap his takeover bid, intensifying his view once again. the details, next. this is bloomberg. ♪

>> this is bloomberg markets. elon musk is escalating his legal fight over twitter by asking the judge to permit him to amend his counterclaims against the social media company. here to bring us the details, thank you for joining us. this is an interesting development. new allegations to twitter. what is the ramification for the court case? >> he is trying to bring the

whistleblower into the fight. he sent a letter to twitter and he asked a judge to revise his counterclaims. he is saying, i am learning new information. the whistleblower had not come forward by the time i sent my initial lawsuit and i think the company is violating a consent decree that it signed a decade ago. so what he is saying is that there is new information pertinent to the case. i want to bring this forward and make it part of my argument. that is what he is trying to do today. >> merging these stories together in some ways. you do wonder, as this is unfolding, if we are going to see more focus on the departure from twitter. i think he talked about it being

tied to ineffective leadership. it was somebody that jack dorsey recruited to the company. where do you think the legal team is going to go to get more information on what was going on behind the scenes? >> when you have a former leader who is this high, saying that it goes without saying, that is a great weapon for his lawyers. this is someone who had standing in the industry. he reported to the ceo saying that they were lying about security. twitter is disputing all of this. they said his claims are riddled with inconsistencies. you kind of had a he said she said situation, but as it

pertains to a lawsuit, they can now point to a senior person at twitter and say, this is someone who can corroborate a lot of things that we have been saying all along. >> always great to get your perspective. we will continue to track the twitter story. we have been tracking shares of best buy today. it has been hired. of course, we knew that this company was dealing with some of the pressures from consumers. bloomberg's branding case has been covering this earnings report and the broader retail reality. the one-two punch for best buy, it would seem is that people are paying more for groceries and gas, so maybe they are less inclined to buy a television. but they would also like to travel over buying televisions

as well. >> their sales are down. that is exactly what is happening. the ceo called out that people have to pay more for food and it leaves less money left over for phones computers -- phones, computers, appliances, you name it. >> to me, what was interesting is that they were able to get rid of some of the eminent tory, but they said it was due to an increased promotion. how much damage did that really do to their bottom line? >> promotions were a closed margin. that was included in their bottom line. it is a little ironic. it is a contrast with the gigantic surge. walmart said very specifically

earlier this month -- earlier this month that competitors bring out here promotions but inventories. >> helpful context. at the end of the day, a quarter that falls in the summer time is important, but the most important time of the year is the holiday season. what are you hearing and seeing as we head into the holiday season? >> the big takeaways, one of them is that demand for discretionary items is pulling back a lot faster than expected. 18 to be in year spending spree. demand is not where it was.

it is actually a gain for those who do want to go shopping. one of the messages from best buy today is that, if you are looking for markdowns and deals, it will be a much better opportunity for you then it has been. they knew that the shelves would be bear. >> much appreciated. we will be leaning on you plenty for a lot of these retail stories. we will take a quick break. when we come back, working on measures to help households and businesses with their energy bills. this is bloomberg. ♪

>> this is bloomberg markets. time for what it is worth. today we have a number of goldman sachs, warning that u.k. inflation could top 22% next year, if natural gas prices remain elevated. the latest forecast for the severity of the crisis that has been unfolding in the u.k. caroline hyde spoke about the situation and how they could be using the commodities as a weapon. >> he has worked out that he can use energy, especially gas, as a way of getting back at us, the british people, germany and the rest of europe, through the use of gas supply. that is something that he is

wanting to weaponize. we had to remain resilient. the ukrainian people are facing a tough time, and illegal invasion of their country, so we have to make sure that back home come in the u.k., people have the help that they need to. everybody there is an increase in is come through in energy price. by december and into next year, those bills will go further.

christ we are looking at the average going up about 3.5 thousand. looking at that amount that has increased, this is still a consumer that is incredibly painful. quest there is a lot to come. but also, the moment i walked in, we know that that are meant putin will continue to use this. we have to get the message back to mr. putin that this will not work, so we have to look at every option, at what we need to do, come december and january come into next year. nothing is off the table, but i want to be ready. september, they can hit the ground running.

>> still recovering near session lows. ♪

mark: here is the first word. united nations and pakistan issued a appeal for emergency funding to help those affected by record-breaking floods that have killed more than 1000 people since mid june. >> i want to emphasize to this scale and magnitude, whereby the country received an equivalent to three times the national average. >> pakistan's prime minister says the flood is badly destroying crops and they considered importing wheat.