>> welcome. more russians are choosing to flee the country after vladimir putin's moratorium to fight in the war in ukraine. according to russian news services, the defense officials have drafted more than 200,000 people since last month. the same number of russians have led to neighboring countries over the same period. they have crossed into other countries including georgia. opec-plus is considering a reduction in its production limits in as much as 2 billion

barrels a day. the supply could be smaller. the group made the cut of the size when it meets tomorrow. it is jumping far below the official quota, they will have to curb production even as limits are cut. most floridians should have their power restored by friday. florida power and light, the's largest utility in the state have several hundred customers in the dark. at the peak of the storm more than two .5 one million homes and businesses were without power. president biden is scheduled to visit the damage from what he describes as one of the worst storms to ever hit united states. steve bannon has been given a trial date of november 2023 on charges he contributed to a u.s. mexico border wall out of more

than $15 million. the charges were related to rebuild the wall, a group that used private funds to construct 5 miles of border fencing. bannon pledged all money will go to production cost but is accused of transferring money to accounts he controlled. 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. >> welcome to bloomberg markets. grady: another rally on our hands, the s&p 500, look at this, equity of 2.5%. they sure are performance, a gain of over 3%.

a start in a turnaround story in the asset classes. guilt only moving down three basis points. a big number. look at this, the special lows, adding to the boost. not far behind it, the commodities space up across the board. bloomberg commodity index is up 26%. jon: it is for the individual stock movers, a little bit of an everything rally. we look at transportation, the airlines and the cruise operators, and then the ev theme, for with encouraging electric vehicle sales. general motors are adding a former tesla executive to their board of electors.

the reaffirm their production plans. investors are in a pretty upbeat mood. kriti: one more move, twitter shares by 13%. this is after months of legal battles, elon musk is agreeing to buy the company for the original offer price. the very latest and what has changed in the last couple of days? >> elon musk is throwing in the towel according to sources. he sent a letter to twitter aligning a proposal to proceed with the original offer which is $54.20 a share. must agreed that musk -- musk try to terminate the deal on the idea that there were too many parts of the platform. the market was assigning that

the judge would hold musk to the original terms of the deal. we have come full circle. jon: musk and his team would have had to have been crystal clear on twitter violating the terms of the deal to be deemed successful? >> musk and twitter had a signed contract. in order to walk away from the deal, he would have to prove a material adverse effect and in so doing he try to say that twitter withheld key information , largely about the level of users on the platform that were parts or spam or fake accounts. what he would have to prove in that delaware court is that the withholding of information by twitter was so significant that it essentially blew a hole in the deal. it fundamentally alter the value of the deal and the company's ability to operate.

there market thought that there were long laws to do that and twitter would be holding him to the contract was much more likely. kriti: one of the key pieces of this deal was that on one hand elon musk had a vision of free speech that twitter had to deal with. he had ideas on monetization and a subscription model. do you see any changes? >> in the discovery process leading up to the trial, exchanges in text between elon musk and the founder of twitter is that musk believed changes needed to happen but only possible if twitter would be a private company. dorsey has had concerns about the influence of the ad model, how it has hindered its true potential. he was worried about the number of pots on the platform. one idea he put forward is the

ability to pay to have verification or have yourself authenticated on the platform. in the near term, the biggest question is does elon musk sell more tesla shares to recover the gap he had initially? a raising gain of more than 6%. kriti: we will have to keep an eye on all of the share prices. great reporting. ray dalio giving up control of bridgewater associates, the hedge fund he founded with $150 billion in assets. erik schatzker has been digging into the details. of the story that you have been sharing today kyle is not only how important the process was to ray dalio -- shows not only how important the process was to ray dalio, maybe you can walk us through this process? >> back in 2010 when he decided

it was time to put a succession plan in motion are bridgewater, he thought optimistically, naively, maybe it would take a couple of years. it turned out to take 12 years and bridgewater cycled through seven soul are ceos in the process. settling on the current two co-ceos near par deya and mark bertolini. you know some of the names along the wayside, david mccormick, john rubinstein, eileen murray, who came from morgan stanley and spent quite a while as a co-ceo in bridgewater. greg jensen who is a co-cio. it was hard and it was much harder than ray expected. this is the final and irreversible step in his succession plan. he is handing over voting were told -- voting control to the

firm's founder and as he calls himself cio mentor. jon: the timing is interesting. kriti: bridgewater's track record, they are putting up some better numbers. talk about the timing of this analysis. >> this was baked in the cake in the early part of the year when it water its board to everybody and talk about changes in governance. what is a surprise as ray is giving up control and at a time that makes clients feel better. to your point, bridgewater's pure alpha strategy which is its flagship, find if you will, actually represented in more than a single fund. the strategy is up 35% year to date. that really helps to reverse some of bridgewater's awful

performance in the pandemic when pure alpha lost 13% in 2020. meantime, arrival such as alan howard or chris roco's were having record years. it was a bitter pill to swallow for a bridgewater. this is a from that prides itself on recruiting and cultivating the best people. you know all about radical transparency and truthfulness and the idea of meritocracy, all of those things about bridgewater are supposed to make it the best in the business. in 2020 it was anything but. jon: people can read more on your great story on the terminal. erik is joining us with the latest on ray dalio, thank you very much. macron saying it will spend $100 billion over the next 10 decades to build a huge computer chip complex in upstate new york. it is another major chipmaker

who invest in the u.s.. this is a technology analyst for bloomberg intelligence. absolutely massive numbers. what was your reaction to this is to mark -- what is your reaction to this? >> it is a big number eight is over 20 years. if you look at near term, micron , and are looking further out into the future. that is where their sites are in terms of meeting future capacity or demand by building capacity. kriti: i like you use the term near-term. 20 years, who knows what geopolitics looks like? what about u.s. china tensions? >> they do not have as much exposure to china as some of the other companies out there.

most of their assembly facilities and manufacturing facilities are away from china. they are slightly better positioned than others. the supply chain is integrated, it will by default impact them over time. i do think on some level, if the geopolitical tension sort of subsides, you have to wonder does this rush to build away from the more cost-effective southeast asia also go away? jon: let us talk about in the analysis for micron you talk about the u.s. china ban as well as one of the considerations for anyone who has seen the headlines on this deal today and what it means for the business? >> that is an interesting question because just today the dow jones put out some information. u.s. sanctions against china might actually spread, they may

spread to advanced memory chips. if that would happen, that would impact companies like micron in every space. auto in their case china is minimal -- although, in their case, china exposure is minimal. kriti: talk to us about the timing of a potential super cycle. where are we when it comes to the chip space? the next 20 years? >> it will take at least two quarters for the industry and inventory channel to flush out. i will say that the cycle, a 2023 will be a bad year. we may see some improvement in the second half as inventories get used up and they start buying memory chips again. that said, it all depends on the economy.

when it stabilizes. kriti: chips are becoming a beacon of economic strength. we thank you as always for your time and insight. coming up, the australian central bank becomes the outlier, is this a sign of things to come? this is bloomberg. ♪

kriti: this is bloomberg markets. let us revisit some news we got, twitter shares were halted, shy of 13% up after some news that elon musk is going to propose to retake twitter for the original deal on his mind, his legal team does not think that the judge will rule in his favor head of the courtroom trial that is later this month. why not offer the deal now? those shares are halted at the moment. when the shares are moving again, we will bring you the update. let us bring in annetta, the

chief financial economist, we got some news overnight from the rba. they hiked rates by 25 basis points. are real outlier from the rest of the world. could they be the harbinger for what we see stateside? >> that is the hope you are seeing. i think the narrative around the activity is premature. we have gotten some data points that are encouraging and that i would say constitute baby steps toward a potential pivot. i would say it is too early. the first thing we have to define is what would it look like? if we are talking about slowing the hike at some point, that is fine. that is always part of the base case. a pair of it the fed diving towards a less restrictive policy stance than they

indicated two weeks ago. i do not think we have seen enough evidence to justify that. jon: let us talk about the evidence, the data point on manufacturing, the market was watching yesterday. one of the considerations for investors on how far the fed may go with interest rates, we have a jobs report later this week. what economic data are you watching to determine the path for on rates? -- ford on rates? >> the way i think about the data, we have already seen a big decline. ask yourself who is driving the decline. in a typical business cycle you see margin compression and companies becoming unprofitable, burning cash, putting pressure on corporate balance sheets and that inflates labor demand. we have not seen any of that,

corporate balance sheets are very strong. the only thing that is driving labor demand down was the anticipation that the fed was going to deliver a lot of tightening in a recession. when the fight does not deliver that tightening, the risk is about the momentum bounc is back -- balance is back. i do not think they can pivot yet. they have to bring the tightening that they promised and they have quite a bit to go. kriti: i wonder how much of the work has been done by tightening financial conditions? the stock market has been in decline. and has not abated since this week. how much of the market has done the work for the fed? >> i think they matter less

than they did in the past. the wealth has been quite weak. credit spreads are certainly a restricted -- are certainly restricted. maybe if they are not as dependent on credit to continue to hire. i think this economy is not as sensitive to those types of financial conditions. they dollar still matters a lot. it reduces our competitiveness and that will impact the gep through the net exports channel. the dollar is delivering a lot of tightening. i think the trade weight of dollar is $.16 up from last year and that is equivalent to 16 basis points worth of hikes.

i think that will really start to hurt more next year than this year. we are taking that into account. the fed is tightening financial conditions and they dollar strength is predicated on the idea that the fed would deliver additional tightening and markets would price that out and the more pressure would be put on the fed to deliver that. jon: we continue to watch the currency story. we appreciate your time. we will take a quick break, when we come back, the sale of the canadian unit rate what is behind the move and how much it is worth, next. this is bloomberg. ♪

jon: this is bloomberg markets.

it is time for today's for what it is worth. how about $10 billion, that is how much bloomberg estimates the canadian bank unit could ultimately be worth. hsbc has confirmed it is exploring a possible so that navigates a turnaround in shareholder pressure. i was talking to an analyst at the half-hour mark who said among the big canadian banks, all of them may have some interest in getting a little bigger with a deal like this if that is on the table. there are few opportunities to bulk up in canada. many canadian banks go to the united states to go hunting for acquisitions. kriti: that is something we are going to keep an eye on, the canadian banking sector is something to watch in the global sphere. how does that happen in the higher interest rates and the drop in m&a. this is a fascinating story. we have a rally on our hands,

even the bond markets are green on the screen. yields are down by three basis points and a weaker dollar and higher commodities. stick with us, we have you covered. this is bloomberg. ♪ - [announcer] southern new hampshire university has the degree for you, with over 200 programs to choose from, low online tuition and multiple term starts per year, so the best time to get started is right now. visit snhu.edu. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

mark: here is the first word. the united states is pledging new support for ukraine. the ukrainian president and president biden spoke by phone today, president biden said the u.s. will continue to support ukraine for as long as it takes. he pledged $625 million in assistance which includes additional weapons and equipment. europe stands ready to use every lever to keep the financial system stable as russia's invasion of ukraine undermines the energy supply. european