>> equities are under pressure. bloomberg markets starts right now. ♪ kriti: the s&p 500 is down marginally, down 0.5%. three or four years ago, this would have been a big move. in the context of the latest volatility, not a big one. a cautious move ahead of payrolls on friday. the real action is in the bond market. 10-year yield at 381.

we have about 810 basis point move. the market's try to figure out what we're actually going to see in payroll tomorrow and whether or not a good number is good news. nevertheless, take a look at what is happening here. up 0.7%, perhaps adding to the weakening in the stock market, but not adding to the weakness in the commodity market. up about 0.8%. in a volatility context,

massive move. still above the $90 per barrel mark. it will be all about the individual earnings over the next couple of months. from a macro perspective, check out what tracie mcmillion has to say. >> if we see cuts next year, it could provide capital gains. as we see things recover from the expected recession, a boost in equity by the end of next year as well, we would broaden that diversification for now, have some commodities exposure, and appropriate hedge fund exposure, too. but broadening diversification is hoping that very narrow 60/40 performance this year. kriti: that commodity exposure, that fixed exposure she was talking about is for hedge, broadly. the only one broadly in the green this year, according to bloomberg news, a fund manager said this is the best year ever. there is a winning formula here if you're trying to trade these markets. >> there are a select few for the winning formula. some of these people are not managing outside money anymore.

we have been all over this all year. up 274%. according to the financial times, up 114% this year. you have owed a up 193%. we have some famous hedge fund managers this year so far. i have to say that this is the exception, not the rule. i want to show you also what we reported this week with double digits returns this year. you have seen some gains across strategy. tactical trading is up 1%. equities are up 17%. how does this compare? if we are looking, that is all of the funds across the universe that bloomberg tracks. it is a wide universe here. give equity hedge funds down 11% on the year. most every form of hedge fund is down on the year, except macro

funds. they are only up about 2.6%. i am showing you all this just to show you that really just a few managers up to hunter percent or more are really defining what your seeming -- seeing happening. many are bleeding here. currency funds are down 13% or 13% on the year. even some of the things you would think are considered macro still out there pretty significantly. kriti: what was so telling to me was the commodity exposure. on the trade front, it looks like you just buy some food contracts and that will be your ultimate hedge. no one said to make that your base case. >> i think that is pretty fascinating. commodity hedge funds are actually beating the market by a landslide of 10% on the year. when you look at the broader index, what i think is

interesting, is what you wouldn't think of traditionally being exposed commodities are winning from commodities. a qr is doing very well. commodity strategies are also doing very well. there is even the classic trend following helping some people out this year. commodities are helping people that would not have ordinarily been thought of as typical commodity traders. kriti: and this is how you get it. you have to have big money to make big money in that sector. we thank you, as always, for breaking all of that down. we are hearing from lisa cook, who is speaking at the pearson institute for international economics in washington. take a listen to some of the things that she is saying. she is saying restored price stability is required for ongoing rate hikes to really continue. she is also saying that the fed is likely to continue to keep fed policy restricted for quite some time. this is something we have heard from chairman powell a time and

time again, the idea of what kind of feeds the inflation, the expectations that are doing more of the heavy lifting. she also talked more about focusing on the lag between policy actions and their effectiveness, as u.s. inflation remains stubbornly high. you can see the fed is certainly sticking to the same drumbeat we have heard time and time again. that is certainly something investors are going be following as they position into the end of the year. it's get the view of kathy e ntwistle. walk us through how you are positioned here, after hearing the same thing on repeat for years. >> it has been a tough year. as you said with earlier guests, they have seriously underperformed our kids or just been negative overall. we have been looking at other things, but we are also telling clients that we have been down this road before. we have had markets go up, we

have had them go down, we have been through many cycles. what you have to remember is there's always that time when you go, i wish i had done that at some point, when you're thinking about your portfolio in the market. now is the time to start thinking about what you should be doing and look for the opportunities, because they will be coming. kriti: one of those opportunities is perhaps standing on the sideline for a little bit. cash is not trash. he should actually hold onto them. kathy, i believe you are one of them. walk us through with that actually means. are you talking about the dollar, money market funds? what does that actually look like? >> short asset money is paying a pretty return right now. we are putting our clients's cash into short-term liquid money, floyd on the sideline. this is long-term, but we are keeping it short-term until the

opportunities for long-term present themselves. we do like money just sitting in cash and having the opportunity to deploy it with the market becoming more attractive. look at the companies, whether they are u.s. companies, international, you see the items in your pantry, the things you are using every day, most prices start to look more favorable when the markets are undervaluing them. that is the time to start buying again. kriti: i want to ask about that pivot as well. we are talking about the fact that a lot of people are focusing on the micro instead of the macro. i'm curious about how much of this is still dependent on how much the fed does. are we still waiting for that moment the federal reserve is looking at rate cuts instead of rate hikes? >> definitely looking at that at some point. where try to figure out what to do with money and cash investments. basically, what we are telling clients, what i am telling my

clients, is that there are other asset classes also have to consider. earlier, you were speaking about the 60/40 equity. that is over. that hasn't been the right allocation for clients for some time now. we wanted to bring other asset classes into the mix and make sure plans are diversified. so, yes, commodities have done quite well. we still let commodities here. we like real estate, we like consumer discretionary and health care. a lot of the defensive type companies, you can have some money and equities. we are not taking any client allocations away from equities at this point. what we are doing is rotating. on days like monday and tuesday, where we had to percent and 3% positive days, we are peeling out the investments we no longer want to have in our client portfolios. the companies where we don't have conviction they are going to do well moving forward. on days like yesterday, we are

going to say down days, let's start buying the companies that we do like. a little bit of that is helpful. a lot of inflation is really based on supply chain. and also the mindset that consumers have since covid. consumers have re-prioritized where their values are, how they want to live their lives, and what they want to buy. there's too much supply -- demand, i'm sorry. there is too much demand for some of the supply out there. that might have to change at some point. kriti: a lot to walk through and a lot to digest. michael feroli -- kathy entwistle, thank you so much. mark: the united states is taking steps to make sure an ebola outbreak in africa does not come here. airports will redirect travelers from uganda to five airports to screen for the virus. the country was grappling with and outbreak of the strain, for which there is no approved vaccine. u.s. health officials believed

the current level of risk is low for it spreading in the u.s., but are urging airlines to be on the lookout for possible cases. a prime -- mr. liz truss is trying to regain the trust of her party. [indiscernible] in brazil, the former president is leading the first polls on the october 30 went off. but that will likely be met by some skepticism after largely underestimating support for the president on the first round. data showed 48% of votes.

people who question the legitimacy of the 2020 election will now make up a majority of republican nominees on midterm ballots. 299 nominees in all have even denied or question president biden's victory. it is occurring -- that is according to a washington post analysis of elections across the country. they are running in every region of the country at nearly every state. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪

- in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com

kriti: this is bloomberg markets p dime critique up jobless claims rose more than forecast last week, but still at a historically low level. let's dive into the state of the job market with ed ludlow and michael mckee. we have this in addition to a bunch of economics. and, i want to start with you. the day we get troublous claims,

we are also getting information on palatine and amazon, with two distantly different hiring strategies. ed: i think it is also a soft indication of demand, especially around the holiday season. amazon said they will add 150,000 seasonal workers for the upcoming period, which matches what it did in 2021. it is interesting because that vote of confidence in demand is at odds with the sellers on amazon.com, bracing with the context of inflation and consumers suffering, for a pullback on online spending. palatine is a different circuit they're going through another major restructuring. $500 -- 500 jobs cut. they were not set up to operate in the barman of the pandemic. but they are very sick synced, to be breaking even on cash flow by the end of next fiscal year. kriti: taking pretty drastic moves to meet that. but let's talk about the economy

broadly. we are still dealing with a very tight labor market in which i am not sure if there will be an uptick in jobless claims and a decline in payrolls. is that a good thing? michael: i decline in payrolls will probably be seen as a good thing in markets. it would be seen as a good thing by the fed as well, as long as it doesn't go down too far. it tells you the demand is slowing, sylvia come -- the economy is slowing and people -- and companies are hiring fewer people. that is what they want to see. but they do want to see slower demand. the forecast of number consensus is to hunt at 60,000. the average for each month and the five years prior to the pandemic was 191,000. if we drop to 260,000, it still would have been considered a strong report. kriti: i remember in the pandemic when those numbers went to the millions, which was wild. let me take the and kind of run with it here. one of the big pieces of that equation was one of these tech companies using a lot of cash they have with balance sheets to

win the talent wars. it kind of seems like they are decelerating and putting that in reverse now. ed: it's all about how they are doing it. and amazon's case, they boomed it the pandemic. the demand was they are specifically from people being at home. they had to undo that. large attrition, headcount was reduced. they are hurt by a slowdown in the ad market. they are not actively laying off people, they are just kind of freezing and letting go. when somebody leaves, they don't fill. that is changing drastically from general electric, which according to sources is drastically reducing headcount. why? demand is gone. kriti: that is the test basin. then, he had the other part of the economy thinking manufacturing and resources.

correct me if i'm wrong, but some were saying it doesn't matter because the united states is not mainly manufacturing. but powering the economy, this was at the start for a wall. michael: the adp report showed a loss of jobs in manufacturing. daya some numbers have shown up to this point some strength. the services number came in at a contractionary pace. to this point, there was so pension -- they're so much pent-up demand and orders that had not been filled yet, but now we are seeing that slowdown. we are seeing housing slowdown. that will have an effect on appliances and other manufacturing goods. this is all kind of what we expect to see.

the issue is going to be, does it go too far too fast and we start to contract, then companies get in trouble and wall street hits a drum? kriti: that's where want to go. even though the initial jobless times were a tick higher, they were a tick higher in the markets as well. we were flat on the session, which is technically good news. michael: they are so sensitive to anything that might push the fed one way or the other. i have to tell you, if you are on wall street and he liked today's jobless claims numbers, next week, you're going to love them. half of florida is out of work, filing for jobless claims. we are going to have a big uptick in claims next month. it is also going to be meaningless to the fed. ed: as we report on the

bloomberg terminal, the fed likes jobless claims around downturns. kriti: ed ludlow and michael mckee, taking us from amounts to the corporate angle. we thank you, as always. what does opec slashing its output mean against the u.s. fight against inflation? ♪

kriti: this is bloomberg markets. i'm kriti gupta. time for a bloomberg business flash, to look at some of the biggest business stories and that is right now. in france, a court of appeals has slashed apples record antitrust fund from $1.1 billion to 355 million dollars. the funds regulators may appeal this decision. authorities say apple has

entered into anticompetitive agreements with two retailers. porsche has become the most liable automaker in europe. during trading, they gained a share market value of almost $82 billion. vw saw some 10 million -- sells some 10 million vehicles, while porsche solves -- sells 300,000. shells refining a chemical businesses are showing sign of a slowdown. that is worrying that the major industry is buckling under pressure of soaring natural gas prices. that is your business flash update. i want to get something that caught my eye. this is a really crucial chart. we're going to see some other key things happening in the macro world. we will start here by looking at the impact of opec on the fed. a lot of people talk about opec as the central bank of oil.

what is interesting about the production cut, 2 million barrels per day, is that in real terms, when you adjust for the quotas that have not been met, it is actually 880,000 barrels per day of a production cut. still pretty sizable. what is that due to inflation? we have not seen or prices come down. that perhaps creates a little bit less momentum on rising inflation, but it works and the other direction, too. if you're keeping oil prices elevated to about $100 per barrel or $90 per barrel, which has been the goal of opec and a lot of middle eastern countries trying to make their budgets and make up for fiscal deficits, what the dust inflation right here in the states is actually keep it elevated. check out those u.s. breakevens. the yellow line is bti crude featured. you can see this stays a little bit elevated. inflation expectations on a five-year basis kind of tick higher. not a crucial piece to the equation.

you can see the two lines kind of track each other, making it a very, very challenging job for the federal reserve. i think that is really what we had to keep an ion when it comes to what is going on in other parts of the world, as opposed to how it feeds right back here into oil prices and some of the moves you are seeing when it comes to people's paycheck and how much they are getting into it. the s&p 500 is still in the red, down about 0.4%. the nasdaq is flat on the session the dow jones down 0.6%. the 10 year yield, that is where you are seeing volatility. we started off with the show, hi about eight points. it has now dropped three or four more basis points. you can see upon market actively pricing and cautions on perhaps a big move ahead of payroll tomorrow. this is all going to be crucial when it comes to the currency pictures, the dollar moves, as well as how it feeds back into the stock market. we are going to talk to chris

murphy about all of these market moves. and of course, the volatility. how long is it going to stay around? all that, coming up. 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. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. mark: a major policy shift in

russia. the, and has told state media to start admitting some of the failings of the invasion of ukraine. officials are worried that their propaganda is fueling public doubt. the head of the russian defense committee said we have two stop lying. moscow is losing ground as ukrainian troops invade to retake their land. european union leaders will meet in prague on friday for day 2 of

the summit. energy continues to dominate the agenda. ursula has proposed to cap the rise in prices and is -- that is threatening to pursue region into recession, but what form that mechanism could take remains unclear. the united states is questioning 17 iranian leaders over the shutdown of internet access and violence against peaceful protesters. since the death of a 22-year-old woman in iran's morality police, protests have broken out in dozens of cities. the government has responded with a fierce crackdown. north korea rationing of tensions in the region where they fired two suspected long-range missiles towards borders where the uss ronald reagan had been deployed. earlier this week, kim jong-un's regime launched a rocket over

japan. north korea criticized the u.s. for redeploying the reagan carrier to waters east of the peninsula. global news 24 hours a day on-air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. jon: welcome. kriti: the s&p 500 is down on the day. volatility, this is what you get her the wait-and-see moment ahead of payroll tomorrow, but stocks are not alone. check out the bond market. rising ace lf there, yields higher by four basis points. this is a higher yield, stronger

dollar, of about .6% on the bloomberg index. it is not hindering morality in crude features. jon: as we wait that jobs report tomorrow, some individual movers we are talking today. eli lilly has been hired for much of the session on encouraging outlook it shares a type to its obesity drug. in the world of earnings, there have been lower bars and this in the jack mccormick, they were able to beat lower expectations to the tune of about .5%. we continue to watch the rocky road ahead for peloton. it is up 3% now but that is on news that they are cutting even more jobs. we will watch to see the future of that. meanwhile, social media stocks have been under pressure this year. a light of worries about where digital advertising dollars will be in 2023.

but today, goldman sachs bullish on pinterest. kriti: everyone trading for that equity story, but we are also waiting for the equity story, a sustainable rally when it comes to the stock market, some to capitulation is the track, but there is already a bit of green on the screen. that is a take of daniel morris. >> we appreciate the one hand that sentiment is bad. no one likes equities, risk, but at the same time, you get a bit of good news and i think you can see some of the price action we have already had. going into the third quarter earnings season, if we have some positive surprises, the market is looking for good news and i think we will get it. jon: let's sound that started the bulls and bears and bring in bloomberg equities reporter jesse matin. on the one hand, we have those

hoping for a pivot but we have seen fed officials out in hawkish full force over the last couple of days. >> we have. you are still looking in futures markets pricing in at least one rate that financed -- year and more in 2020 four. a lot of the comments today echoing statements and sentiment from mary daly yesterday as far as the fed signaling that even once we get to a particular restricted level, they could remain there for some time until they flee inflation come substantially down. kriti: interesting that this is coming off of pricing in a rate cut. when i think what mary daly said was is that really logical? i am curious about how much that sustainable bull market rally hinges on that rate cut? jess: she was talking about how your's confusion. some investors are confusing a

pause with a pivot. even if the fed does pause, was a get a particular level, she was basically saying along with these other speakers that they could stay there for sometime and tell inflation does come down. you anything and a lot of wall street banks, the big question this year's will receive a come down as well as price targets. you see more banks joining goldman sachs, cutting her s&p 500 targets. we are also hearing from marco, one of the most vocal bulls on wall street, changing his eccentric. he still keeps his 4800 price target on the s&p 500 but he put his target at risk right now. that is interesting. we had not heard that. jon: since we have not seen, even with this year struggle for the s&p 500, we have not seen on

average what has happened during the past bear markets, certainly recessionary bear markets, that idea of how much of a recession is baked into the outlook is another constant conversation on wall street. we talked about some of the strategies. we are also looking at fresh comments from citi. jess: citi is anticipating that global stocks could rebound by the end of next year, but what is interesting is that typically, we are entering into the most bullish time for the stop -- stockmarket, but there is a caveat. sam critchley data and was looking back to world war ii and said when you're looking at bear markets, and they coincide with recessions, usually when there is a bullish time period, the s&p 500 would catch the bottom by the end of september. typically, if not, you still have losses in the first

quarter, but he still thinks that even if we see a delay and a rebound for the end of this year, he still thinks that as so many stocks have been hammering this year, he thinks at some point we will see a bit of a rebound. kriti: just matin -- menton, always a wealth of information. let's bring on chris murphy. chris, thank you for joining us. i start with the story of capitulation, simply because there seems to be this narrative of how a pivot in the stock market rests on the shoulders of a potential pivot from the federal reserve. how much of that rests on brent or lack thereof? chris: we have seen such high correlation within all of the s&p components. they are all moving together, basically off of u.s. treasury yields, the dollar and the fed.

that will change as we approach earnings season, but we could look at brett to give us some guidance. over the last week or so, we had a five day span where we had three days where the s&p had overnight 7% of its components higher. we look back to 2000 and that has never happened. typically what we see at 97 plus percent, we expect the market to cool off over the next week or so. this when you seat one. when you seek three, that is unprecedented. i am not sure what to make of that outside of we are training with such high correlation right now, that is not good. it typically happens during bear markets and bear market bounces. the good news is correlation traditionally starts to come in during earnings season and stocks are tumor on their own individual merits. if that is the case, we will likely see volatility come in a little bit, which could have call market. jon: i am going winter earnings.

over the next 24 hours, everybody is looking at the jobs report, but are there other things you will be watching during earnings reason? it just like with how jittery this market has been, it will be hard to ignore what various companies are saying? chris: we are always focusing on the options. we will look at what the options markets are implying to come up with some ideas on our clients, but i would point out that the fourth quarter -- sorry, stocks reporting in the fourth order, so between october and december, those earnings are typically a fair amount more volatile than the rest of the year, particularly in discretionary stocks, in a technology stocks. discretionary stocks it typically move 5% on earnings over the first nine months of the year it but they will move 5%. you see a moving technology as well. we have a lot going on and are

entering the last three months of the year where we typically see larger moves on earnings releases. kriti: it sounds now like the strategy when you look at the s&p 500 broadly will do directionally, it will rest on the sum of all parts, the idea that if they have more earnings, that contributes with the move, as opposed to a bigger macro trade, is that what we are dealing with here, basically adding up what each individual earnings story tells us? jon: i would say for people who are picking stocks, you hope that stress could become the case. everyone is basing everything off of u.s. treasury yields right now. if we consider -- it will be a tougher earnings season, but stocks that outperform will probably get rewarded for it more. if we can shift our focus away from just staring at the u.s. treasury yields and the dollar and listening to the fat and start looking at how stocks are doing on an individual basis,

that will dampen volatility because he was dancing sex moving in different directions instead of moving altogether. it will make things more facebook occurs market in the near term. -- more of a stock pickers market in the new term. jon: what can you tell us about the kinds of cash products we are -- where ultimately investors are seeking safety right now capital -- now? chris: we are looking at equity in the normal safety factors. they are moving the most and getting hit the hardest compared to usual and a daily basis because they are initially getting rewarded for their dividends. meals go higher, you are not -- when yields go higher, you are not saying that as much. traditional safety spots not very safe right now. you want to look at something that is more washed out. in terms of etf land, there is a

letter short-term bond, cash focused etf's we are seeing a lot of information in those products as we see outflow from equity products. kriti: chris murphy, we thank you as always. coming up, twitter shares now hitting the session low and elon musk wants to make a twitter and everything out. what is at me for the business? we will find out. this is bloomberg. ♪

this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn.

and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. kriti: this is a bloomberg markets. marcus remained in certain over elon musk's takeover of twitter.

for condition is back on the table over the deal's financing, as well as what twitter under musk could look like. for more, men deep, just as we were coming back, we see twitter shares down about 1.5%. the deal will actually get financing. this comes after reports that apollo is backing out of the $13 billion they promised. is this still going to get done? mandeep: he has the commitment letter from the bank from the debt component. the markets have changed from the summer. the yield spreads have gone up. you could argue financing around $13 billion for such a large bio is to have in this environment, but at the same time, he has a commitment letter. let's see what the banks do, but

it was not a change of heart. he realized that if he goes to trial it will not be good pr. that to me seems to be the main reason why he is going ahead with the deal. jon: matt, you have done some exceptional analysis of this very issue of financing. the hypothetical situation where the plant financing source to fall apart and then legally what happens? matt: that is right. elon musk's legal case is weak. the week before he wrote that letter, he was saying i will agree to the purchase, but it is even weaker now. that means the only legal way he can get the deal is if this debt financing were to fall apart. at this point, it is very much a

theoretical risk because there has been no indication that the banks are walking away from their commitment to fund that. at this point, it is just a theoretical risk. there is no reason to think that is going to arise, but if you are twitter, you have reason to be cautious this has been a roller coaster. kriti: matt, one of the issues twitter has that -- was that is elon musk basques away, twitter to enter -- to any other buyer becomes intelligible. if the funding disappears, can twitter something that case? matt: first of all, if this financing disappears, under the agreement, elon musk still has the duty to try to find more it is not that easy to do, but at the same time, the larger point you raise is exactly right. the interesting thing is that elon musk has damaged this

company throughout the process as he has tried to get out of his agreement. he has put the company in a tough position going forward. for example, with the whistleblower claim he has made a big deal about, there is a possibility that the federal trade commission comes after the company now for hundreds of millions of dollars in penalties. it is very likely that that is going to be elon musk's problem going forward. jon: that is a helpful perspective, not. manddep, kudos to you for trying to make sense of those pearly comments on musk on what twitter might look like after the deal, this idea everything cap. -- app. mandeep: the closest comparisons are at linkedin and youtube. i say that because twitter come at the end of the day, is a network that brings in creators

and followers they should find way to monetize both of them. creators every social plea deal platform, they want more creators. twitter already has them. if they need more tools, which is what twitter blue is all about, that could be 90% gross market revenue. treatment has failed to monetize engagement through ads, but there is potential. that is why linkedin and youtube offer the best model in terms of using both subscriptions and ads. they have than it successfully over the last three years. kriti: talking about the stock prices. we are trading at $50 six five cents. mandeep: elon musk is overpaying when you compare it to valuations of snap and printers. it is 2-3 ti butm ate the same

time,s. there are only four or five platforms with that many users. twitter has that. it is about figuring out a business model and monetizing it. jon: thank you very much. on that note, or bill burck headlines right now that musk and twitter, the resolution of this deal is said to stick on that issue of debt contingency. we are going to continue to watch this as we have watched the story of how this gets finance front and center. just to reiterate that headline, the bloomberg terminal has just said that the resolution of all this sticks on that debt contingency issue. kriti: twitter once again

hitting new session at lowe's, about $50 on the share price we will not let mandeep leave this set. what do you make of that? mandeep: we know the stock fell as low as $37 and he walked away from the deal. the stock price will reflect uncertainty. it's a debt financing is not coming, for preferably dollars is not an easy gap to fill. it is a problem. given twitter management and elon musk on existing behind the scenes before the trial gets underway, all of this coming into play, twitter management was to ensure that this deal goes under all -- goes through under author -- under all circumstances. jon: going to bring in ed ludlow

, who has done extensive reporting on this story as well. and looking at the bloomberg right out. we're watching what happens with the two sides who are expected to file a motion with the work when they have settled all their questions, but what more can you tell us? ed: the that financing portion of musk's package is still a sticking point, at least part of the sticking point between the two sides. in the original april 25 agreement, that was not contingent. there was no clause in the agreement -- contingent on debt financing proceeds being received. then you remember two evenings ago went musk's representatives voted letter to twitter. the proceeds of the debt being received was part of his offer, his updates. clearly, it is a sticking point. you look at reaction in twitter

shares, but the greater context is that they are ready to move forward once that is resolved. one source said if we can get past this point, we could move quickly and indeed have closed within a week or so. we are paying very close attention to what happens next. kriti: my custody financing, he does not have that financing. what does it have to do to his personal wealth and there was an inverse correlation for a wild between tesla shares and twitter shares, the idea being that to finance this deal, he might have to sell more of his tesla stock is that dynamic going to come back into play? ed: it is fascinating, $12.5 billion of debt and more on his credit line. the conditions of the market to leverage that have changed. we are a long way from where we were in april. he went back to $7.1 billion of

additional equity financing for partners. in that time, tesla stock is lower than where it was in april. that impacts the amount that if he did have to sell more tesla stocks, there is a consideration on the volume of shares you may have to sell in order to meet the dollar value of that community. that is out of the. -- part of the question we see it tesla stock bring out, the idea that he might have to liquidate more of his holdings of tesla in order to finance the package. jon: thank you so much, ed ludlow and thanks to mandeep singh. to go deeper, this morgan stanley team is looking to money managers to possibly find a home for this debt. things have changed a lot since april. the bloomberg team did reach out to morgan stanley but has yet to hear back. kriti: stocks not reacting well. we continue to see session lowe's. they are down about 2.3% on a

two day basis. a lot of pain in the stock market, tesla shares up .7%. the will keep you apprised of all the developments. stick with us. this is bloomberg. ♪

>> the most crucial moment in the trading day, this is a bloomberg markets: the was with caroline hyde, romaine bostick, and taylor riggs. caroline: waking up to the desk kicking you off to the close, normal day. taylor: we are now hearing that elon musk and twitter, that resolution contingent on gti