mark: i am mark crumpton with first word news. in ukraine, president volodymyr zelenskyy says the current focus of the war in zone ask, describing a heavily eastern region as a primary target for both ukraine and invading forces. he described the situation as "especially tense," and he urged the international community to step up pressure on russia with sanctions. germany expects sabotages the region -- reason for damage to the nord stream pipeline to europe. evidence points to violent acts. the damage was called unprecedented. it is the clearest signal yet

the world will have to survive this year without any significant russian gas holes. many gathered for the funeral of former prime minister shinzo hombre. it came to months after he was assassinated on the campaign trial -- trail. japanese political leaders member ab as ae statesman who led the country. $12 million is spent on the ceremony, met with the growing anger as japanese households grapple with soaring inflation. vice president kamala harris, who is in tokyo for the funeral, is going to work with south korea to resolve a trade dispute about the trade reduction act. she told prime ministers today she understood concerns about tax incentives. provisions including tax credits by as much as $3500 for

purchases of electric vehicles made in north america, threatened to disadvantage major and south of -- south korean brands like hyundai and kia. global news 24 hours a day, on air, at bloomberg @quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. jon: i am jon erlichman. welcome to "bloomberg markets." matt: and i and matt miller. it is great to be back. let's get a check of what is going on in the markets this afternoon. you can see here that we have the s&p down now .5%. we were looking at the dead cap bounce -- cat bounce, and that has since turned around on all of the major indexes.

we continue to be in the red here. the u.s. 10 year yield, 3. 9717. we see well over 30 on the two-year as well. yields, he continues to soar ever higher. that is a global issue, of course, we see deals in the u.k. at the highest pace of all time, at least in terms of bloomberg data. i know it has top 5% for the first time since 2002. we are watching yields globally very closely. european natural gas futures obviously up very big today. there was not any natural gas flowing through the nord stream 1, it never flowed through nord stream 2 nonetheless, we germans are sitting -- we are hearing germans are saying it was likely sabotage. swedish seismologists measured a couple of big blasts on monday,

and they think maybe there were explosions around the pipelines, which caused the leak in depressurization, jon. jon: we continue to monitor that story, matt. it is going to see you, by the way. in terms of the under the hood performance today, the s&p 500, at this stage of the day, we are seeing 10 of 11 sectors that have dipped into the red. we have seen them come off their bench levels. take carnival, for example, cruise, airline operators with share prices moving higher on reopening optimism tesla, which was an early winter today on some optimism around delivery also holding onto a more modern -- modest advance on the day. we are seeing advances for some commodity plays. oil is bouncing back today. we saw a little but of a lift for gold prices. ventures keep their eye closely on the u.s. dollar. no surprise, names like marathon and freeport also coming off

their best levels in session. matt: we will watch these markets moving ever come a volatile market. what a day to bring your electric motorcycle company to the new york stock exchange. that is exactly what we have seen harley davidson do right now. livewire is the ev unit now, trading under the symbol lvwr, which makes perfect sense. we are joined now by the floor of the stock exchange by nielsen. thanks for your time. i'm curious as to what made you want to spin off this business in the first place. i think it has more than a $2 billion valuation on its own. why did you want to separate it from the traditional motor companies' assets? nielsen: well, we want livewire to be the leader in the electric motorcycle space, and having a dedicated team running it, a company that has the agility

to break traditional boundaries, it is what we are trying to accomplish with livewire. the project we have already launched, and we will start delivering next year, and really having that electrification and service, blueprint, core assessment in harley is the idea behind it. while we can use the ability that harley has from a manufacturing supply chain perspective and not having to redo that, we can really innovate while harley concentrates on its full assessment. jon: jochen, a long-term as outlined in some of that. there is the short term, as we are highlighting for our television audience. it has been a very challenging market. just in going through the process, can you tell us a little bit more about it? ultimately, were you pleased with what you were able to raise? jochen: yes. we raised $334 million, which is

above our minimum requirement, so we are well-equipped to get livewire through the next stage of its development. a lot of that money will go into the infrastructure, into the development of new product, and thankfully, harley as the majority shareholder, really allowing us to use its infrastructure from a manufacturing supply chain come etc. that is a great formula to have. a lot of the startups the merger, with the spac's, help to field those abilities we do not have to invest into manufacturing. we can put it all into product development. matt: does that mean you will be profitable on the electric bike soon? i was checking on the website. they do look pretty tasty. even on the traditional 45 degrees v twin guy, can you make money? is there margin yet? or when can you expect to see that? jochen: well, we plan to be

profitable in 2026. right now, the focus is on expanding the ev motorcycle market, and that is why we are launching our new model, the 2023. we are starting to work on our first platform. it is a completely new structure, the architecture that we have built, the first electric motorcycle that is built in house from the autumn welcome in terms of the battery, the motor, the charging, and the overall connectivity system. it is quite revolutionary. its targeted assessment that is mostly trying to transform the traditional, you know, urban environment and the day-to-day riding experience into an urban adventure, and it is appealing to an experienced rid as well as a newe one. jon: can you give us a little more color on who exactly the

customer is going to be here? jochen: we are not targeting a specific age group. it is the innovator that wants to try something new. the great thing about this bike, it is for the experienced rider that wants fast acceleration and agility over a bike, but also the same time, it is in the for a new rider. it has digital braking. you don't have to switch gears. senior riders coming into the sport -- female riders coming into the sport, male riders, it is also 130 pounds lighter than our livewire 1 and traditional harley like, so it is a different kind of assessment. matt: they make it cool sounded i am a "potato, potato, potato guy," but as people come and hear these bikes, i think they

will like them. jochen zeitz is the ceo and president of harley davidson. thank you. coming, florida braces for hurricane ian as it reaches cuba. it was a category 3 storm at that point. we will discuss the damage and impact with port of corpus christi ceo sean strawbridge. this is bloomberg. ♪

matt: this is "bloomberg markets ." i am matt miller. president biden is speaking in the rose garden right now. he mentioned hurricane ian, which is made landfall in cuba.

it is pushing toward florida's coastline but with the threat of becoming one of the costliest u.s. forms. i heard an estimate today that if it hits tampa directly and stays as a category 3 or even category 2, it could cause $100 billion worth of damage. however, jon, it does look like it is going to hit florida, and it is going to focus on the western coast of that state and state used of the energy complex that we see in texas, the sort of long hand of the panhandle they are. it is not going to, at least it looks like now, affect the energy sector. jon: watching tampa, sarasota, fort myers. obviously the power companies as well, matt. we are getting the early tally in atlantic canada with fiona, one of the power companies busy on that front is one eyeying what is happening in florida, that they just tweeted out power to parts of

downtown tampa. matt: we are continuing to watch that hurricane, but it does not have a lot to do with the energy discussion we want to have right now with sean strawberry, the ceo of port of corpus christi. they move a lot of energy, in terms of oil and gas through there. sean, it is interesting. i just moved back from birth entered when i was over there, i would see the u.s. energy secretary dan brouillette a lot. he was always trying to sell them lng terminals, and they were not interested in that. how do you see the energy it exports coming out of texas right now, heading over there? sean: well, matt, first of all, thanks for having me. absolutely, the world has changed, and you can thank mr. putin for a lot of that. you know, the united states is now the largest exporter of elegy in the world. we are the largest energy

producer in the planet, and the port of corpus christi is the greatest energy exporter in the united states. prior to mr. putin's invasion of ukraine come about 40% of elegy moving from texas is moving to europe. now it is over 70% or you can see a major shift in just a few short months. jon: sean, just coming back to the story of preparation for ian , what has been top of mind for you? sean: well, jon, look, hurricanes or certainly something we have to live with. if you live in the gulf, you live in florida, the port of corpus christi, we experienced one of the most costliest hurricanes, that was hurricane harvey, in 2017, and the port was shut down for six days. that was a record in our 100-year history. people need to understand, you know, south florida does not

have refineries themselves, but they are 100% dependent on texas and louisiana for the transportation, so we had to get back up and get operational. two years ago, florida had hurricane irma that hit. we are washing closely with florida -- watching closely with florida. we are ready and able to assist in any way we can. first thing, readiness, and the preparation for hurricane readiness is something that is just a part of life for us on the coast. matt: again, it does not matter where it hits, it is always a problem driving your ship through that path, right? as we have said, the coast of florida, and it is going to avoid corpus christi, but you still have to send that energy through the hurricane's path. how much of a delay does that cause? how much of a problem does that cause? sean: it does not cause as much of a problem or delay as you

would think, matt. when the coast guard orders ports to be shut for these types of incidents, vessels have to sale. it is actually safer for these large vessels to be at sea rather than import, where they can potentially do damage to the docks and the piers that they are up against. it will have some disruption in trade ports, not as much as he would then, hours, maybe a day or so, but it is much safer for these vessels that sea than that it is a safe -- at sea than it is at harbor. jon: the story we are watching overseas come at the same time, we are trying to figure out where the economy goes, just in terms of how we are navigating through the energy story going forward. what do you think is the story the next few months? sean: well, jon, it is

certainly an interesting inflection point for us and the world. global energy demand continues to grow. crude supplies are tight and will likely become tighter. you know, here in the united states, the strategic petroleum reserve is that is lowest level since the early 1980's there's more crude in the commercial storage than in the strategic petroleum reserve. that is the first time it has happened. we have seen price declines in the crude market. i think that is more of a factor of the strengthening dollar than it is about to supply could as supplies continue to tighten and as at some point the united states will certainly replenish reserves, you will see higher crude prices in the medium-term. matt: how has the energy industry's relationship with the white house evolved over the past couple of years? it seemed very adversarial at the beginning of president biden's term, then he was asking everyone to please pump more, almost as part of your national duty, but not making any

promises about a future regulatory picture. where do you stand right now? sean: matt, i think you hit the nail right on the head. the uncertainty that has been created by regulators at the federal level has really caused some consternation in the markets. that is what markets want to want that certainty. when you look at different agencies saying different things, in fact, some agencies saying different things, you know, that is really the challenge. this administration, secretary granholm certainly has been saying we need to meet today's energy needs while we are continuing to transition to cleaner fuel, put than we have other agencies like the epa that are really making some decisions that are going to tap the brakes on future energy production in the near term. jon: all right, sean, thank you. we appreciate the perspective, yeah. port of corpus christi ceo sean strawbridge joining us. we have a similar theme on the future of ev's, ford announced a

major expansion plan today. we will speak to the ceo of fordpro next to get the details. this is bloomberg. ♪

jon: for "bloomberg markets," i am jon erlichman with matt miller pit i know matt is excited, because we have a lot of auto news. ford has made an announcement, helping to add to the jobs, 500 jobs, building a redesigned version of its largest f series pickup. list bring in ted cannis, ford pro ceo. obviously matt is a big truck fan. let's give us a sense of how this ties into the demand picture right now. ted: well, i will tell you, so

this super duty is the number one commercial vehicle in america. you were just talking hurricanes, when it comes to construction, emergency response vehicles, utilities, we have over 50% of the business. i saw a lot of bucket trucks heading down yesterday, as they get ready come and we have always been working to support america's workers, with a profile, power those situations where you don't have power anymore. so we are real excited about this all new super duty. jon: well, it is interesting, following on your -- go ahead. what is the story with ev's? matt: are you going to electrify the super duty? ted: not yet. too much towing, too much hauling for those. the technology is not quite ready. here in kentucky, we are investing 5.8 billion 5000 new jobs for our next generation of new vehicles, and we are in both sides of that business.

we will see huge growth in huge opportunity to lead in the market. matt: you get a huge advantage, i guess, if you are the first to upgrade the heavy duty trucks, right? i don't think the 2500's have been upgraded, for either chevy or dodge. what are the key features of the new ford super duty you are going to share tonight? give us a sneak preview. ted:ah, that is where you are going to have to wait a bit. we are going to come up with new stuff we are talking, biggest change in years for a total upgrade of the vehicle come into this modern digital world that we have, and demand is through the roof. it was already great in 2019, but if you look at in the america, ports, bridges, road construction, if you look at the grid work that is going on, the 5g and the utilities, we are seeing massive demand. we hear a lot of other business might be having some experian's

with demand, but that is not the case. many locations, small, medium, and large, we are seeing big demand for the business. jon: we are almost out of time, but with ford pro, this is a business line within the company that obviously is focused, in part, on very profitable opportunities. can you give us a sense of what the profit for the business of ford will look like going forward? ted: well, we see the ford pro business going to at least $45 billion of revenue in 2025, not just the vehicles, but this ecosystem of services and software to help small and medium businesses and the largest ones, software, financing, service, and commercial charging, as we offer an integrated package, making it easier for customers, a one-stop shop, and we are hearing great things, and it is going very fast matt: ted, thank you so much for joining us, ted cannis of ford pro, ahead of the unveil

of the new ford super duty pickup truck it i will be following that. jon: i know you will, matt. for matt miller, i am jon erlichman. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service.

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ian is poised to become one of the cost for storms in u.s. history, leaving floods and power failures in cuba and threatening to slam florida with 125 mph winds. >> overnight and do this morning, some of the modeling is now projecting landfall south of tampa bay. we have talked about the tone of uncertainty where the landfall was projected. we added north florida a couple of days ago but that has consistently been moved east. mark: ian