kriti: stocks pairing their gains from earlier. we will dive into all of it. i'm kriti gupta, bloomberg markets struts renault. -- "bloomberg markets" starts right now. we are seeing some pain in the stock market. s&p 500 down 1% but this makes sense given the rally we saw the last two days. i argued it is more technicals than earnings. the real volatility is in the bond market. for .1 on the 10 year yield, up 11 basis points. now paring some of that move. enough to boost the dollar. interest rate differentials creating a stronger greenback come up .7% on the bloomberg

dollar index. what is interesting to me is this not having any backlash on the commodity space, at least on the crude space. 91.94 on brent crude. this comes in anticipation on whether we hear an export ban from president by the. that will be the real price change or. brent crude is up to .1%. industry -- up to 1% -- 2.1 percent. >> we will not see weakness in the dollar until the other economies start to do either as well or better than the u.s. perhaps does not have that much to do with rates. if you are doing well, you're likely to have inflation. let's go back to growth. when we analyze effects and who is going to do well from that perspective. the u.s. is still the -- is still doing well.

is likely to go into recession if it does, it will be a late recession. i think in that context, the u.s. dollar can continue to do okay. kriti: joining us to talk more is max cockrum of alphatrai -- mexico, -- max gokhman of alphatrai. i want to ask about this bond volatility. we are seeing a big move in the bond market, not one mirrored by the stock market. what is your take? max: i think we have seen bond bearers more tenacious than equity bulls. i think the equity bearers have been abiding in weight. john, this was in your column,

capitulation. i don't think we have seen capitulation in the equity markets yet and i think that is where there is more of a wait and see approach in the bond market, especially the treasury market, once you go over four it is more of a push to get it to 4.5. kriti: what does capitulation actually look like? how can you tell if we are there? max: we want to wait until the building is a smoldering. you don't want to walk into a burning building, you want to walk in when everyone else has been away. you can still see the smoke, but the fire is gone. one thing and looking at is the vix. even though we have two bears on a technical level, we have not seen the vix cross 50. that is a level i'm watching. kriti: john, what do you think? what does it take to say we have seen capitulation?

john: the phrase everybody uses these days is something needs to break. i agree with that. it looks as though the guilds crisis is coming under control in the last couple of days. that have gone differently, could have ushered in a period of capitulation across the bond market. if treasuries had freaked the way guilds had, that would have been enough to prompt a selloff in vstoxx. that would have been the moment when hope was lost when people accepted that was a serious issue and you could begin to talk about establishing a new low. kriti: there is some conversation about is that a u.k. only story. is there a possibility we could see that in the u.s. treasury market which is larger and has bigger pushback affects?

a fascinating conversation in the new york times. reporter had interviewed people about concerns that could happen. could it happen? john: yes. in terms of the ultimate concept that you could raise rates and discover that creates a financial accident that leads to the kind of cascade of selling we briefly saw in britain, yes, that could happen. will it? that is remotely critical question -- that is very much the critical question. after many months when arguments about the fed pitted about the macroeconomy, -- arguments about the fed were about the macroeconomy. and macroeconomy does not cause a pitted -- a pivot. but the macroeconomy does shift

slowly over time. what would cause a true pivot would be something like capital management in 1998, a major financial accident. that is why there is far more interest combined with what happened in britain and the notion we could have an accident. kriti: speaking of a long-term, this is a question i have been asking economists. this idea of a long-term 2% inflation target, i have a hard time understanding why we are going back to 2% when physically we are looking at -- fiscally we're looking at more manufacturing in america. we know that is more efficient. if that is the long-term plan from the biden administration, wouldn't that reflect is a longer-term inflation rate because things are in america will by definition be more expensive? max: i complete the agree with you. there are more people who

believe in ghosts than central bank dependability. we are saying secular themes that precipitated low-inflation regime such as globalization. as that happens, it is natural you're going to see inflation go higher. the is quick to realize the long-term target is closer to 3.5 than two. john: the demography is tied to this. i think this is the year most boomers retire. that obviously switches them in three from savers to buying investments to people living off of their savings and selling them. there are a number of reasons to think a low-inflation enter low-inflation period is over -- a low-inflation period is over. another possibility is the fed

raises the target to 3.5%, something like that. inflation does make life easier in some ways if you are in debt, it makes life much easier. that is one of the more likely bodge jobs, life hacks to the system that might get us through this without an all-out crisis. kriti: rapidfire around. what do you by, what do you sell? max: i would be buying boring things that have margins that can withstand cost pressures and core services. utilities would be a good example. i would be selling a lot of consumer tech. netflix may be surprised to the upside what i don't know if that will last into 2023. kriti: you heard it first here. max gokhman's trade from

alphatrai. john, we thank you as well. time for first word news with mark crumpton. mark: u.k. prime minister liz truss fired the home security for what she said was a national security breach. they move adds more pressure on the embattled premier. the secretary shared secret documents on a mobile phone. she acknowledged the technical infringement of the rules but later in a loaded message to liz truss treated and part "the business of government relies on people accepting responsibility for their mistakes." just a moment ago, grant chaps was appointed as new home secretary. lisa about -- speaking to lisa abramowicz, a security advisor says the administration is not announcing a ban on fuel exports

. >> i never take anything off the table but it is not what we are announcing today or anytime in the near future. i would put that aside and focus on where we are which is trying to bring down the price. mark: the official adds the focus of the white house is to try to bring down the price of gas. for chicago mental health pilot program dispatches clinicians to some 911 callers. that is a strong promise. the service has connected nearly 400 people to care without a single use of force incident or arrest in its first year while promising the program still has its hits as crisis management response teams operated just six hours a day five days a week and only in four of chicago's 22 police districts. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton, this is bloomberg. ♪

kriti: this is "bloomberg markets."

proctor and gamble sales beat estimates while warning full-year earnings will come in at the low end of their forecast. a earnings story when there is a lot of room and gloom. walk us to these numbers because i was surprised to hear people are still spending. daniela: it is an interesting picture. procter & gamble has been raising prices to fight inflation. now we have unit sales declining. that had not happened for years but they have not had price increases for years. the way people are thinking about it is yes there has been a decline what it is sort of muted. kriti: does that mean the exodus is coming? is that a delayed impact we are going to see, especially when forecasts were saying we are

going to hit recession in 2023? daniela: that is the question. today the cfo said they expect organic sales growth which takes off things like the dollar, for example, that it will be driven by higher prices. to give you some context, this quarter prices rose by 9%. that is not nothing and so that is what they expect for the balance of their fiscal year. volumes are seen declining as they do that. kriti: that is interesting going into holidays. you can assume perhaps this would be a leaner christmas. i am curious if that will translate to the entire consumer sphere. is that a trigger for more serious products for -- is that a switch off for household products? daniela: they are saying interesting behavior in terms of what consumers with more money versus consumers with less

money. consumers with more money are buying bigger sizes so they can play -- they can pay less per use. people who are more constrained are being more mindful about dosing instead of pouring a bunch of laundry detergent. they are being more mindful of that. they are going for lower price points. png and companies are perhaps different from other companies in the consumer space. png is betting hopefully people will still be betting on that idea of performance. we will see if that pans out. kriti: are we worried about some massive pullback when it comes to a buybacks or anything like that? daniela: that has not come up for investors. they are thinking about something totally different when it comes to a company like dr. and gamble. the more imminent issue is the outlook for earnings and they

did say it would come on the lower end because of inflation and because of the dollar. that is more top of my for investors and a like p&g. kriti: the bloomberg color index, a trader that is not really going away. png trades are up 1.6%. daniela, we thank you. united airlines posting strong results as a travel demand comes back. scott kirby spoke about the supply constraints. >> supply is going to be constrained for years to come by artificial factors. it is less of a constraint for united because we are the top of the funnel, top of the. for people wanting to be piloted. but are not enough pilots in the industry. boeing and airbus away behind and the supply chains are way behind. kriti: let's turn to mary, an expert on all the airlines.

thank you for joining us. we heard scott kirby talk about how much pain there is from the supply side. from the demand side, united came out with a profit forecast that beat estimates by almost double. square the two things for us. mary: they did with the third quarter estimates and their protection for the fourth quarter was they would have a profit worth more than double the current estimate. here is where the two come together. this shortage on aircraft and pilots is helping airlines keep as is high. demand is a superstrong. the plans are packed. all of that is a tight supply and demand balance. that helps them keep fares higher. kriti: speaking of keeping fares higher, is that something that is ever going to come down given this revamp in business travel? something scott kirby mentioned is people are combining this travel with leisure. they will fly to san francisco

and spend the weekend there. does that eat into their bottom line? mary: it really doesn't. kirby is saying this is a structural change because you are seeing leisure travelers make the trips combined with business and so they are traveling more often. he says they're taking trips they have never taken before. he sees that as a permanent change and something that is going to continue. he notes that business travel still in the recovery phase, unlike other industries who fully recovered. there are some regions who have not fully reopened to travel. he says it is growing, it is going to grow more. kriti: what about when it comes to its competitors? united competing with delta which did put more emphasis on business travel. mary: right. delta's forecasts were also strong and they are seeing a return to business travel, really feed their revenues.

what delta talked about was used to fly in tuesday, wednesday, thursday and the plane would not be too crowded. now every day their planes are over 80% full. he says when it comes to holidays, as that of have a one or two peak days, they expect holiday peak demand will last over several days or maybe over a week as people travel on different days now. kriti: what about jet fuel? this is an industry that is not exactly hedged. if we see persistent oil prices and then filter into jet fuel, how prepared is the industry to deal with those rising costs? mary: so far the alliance have had a lot of success passing those costs onto consumers. as you recall this year when jet fuel peaked, like reached historic highs, they were able to pass that onto consumers. what they will have to hope is that they will be able to

continue to do that. kriti: mary, we thank you for your time and expertise. speaking of delta, the ceo will discuss the carrier's recent earnings and 2:30 p.m. new york time right here on bloomberg television. for now, the bloomberg business flash, a look at some of the business -- the biggest business stories. netflix is growing, it added 2.41 million customers in the third quarter, exceeding internal forecast and expectations on wall street. netflix grew in all regions of the world and said it expects to sign up another 4.5 million globally this period. it is across the -- a coffee crossover, it has entered into an agreement to sell the seattle's best coffee company to nestle. it will help strengthen the global coffee alliance which

established in 2018. the global smartphone market had its worst third quarter since 2014 as economic headwinds pushed consumers to delay discretion repurchases like personal electronics. shipments of smartphones fell in percent -- felt 9%, a decline for all of 2022 according to a market research form -- research form -- research firm. diesel demand is surging in the u.s. while supplies remain at the lowest seasonal level ever. . this is bloomberg. . ♪

kriti: this is "bloomberg markets." we are awaiting comments from president biden and the roosevelt room about the spr release. it is something that has been

priced into the markets. there is some expectation he will announce a ban on export oil. that is something we will keep an eye on and bring you live 20 his the podium. let's bring you to something that caught my eye. diesel, this powers a lot of farm and construction equipment. what i want to look at as prices. this is something that has become a canary in the coal mine where you see prices go so high, the highest-quality way back at least to the century. 450% above the 20 year average. that makes it harder to get access to diesel at a time when construction is ramping up, when farming is ramping up, given the food crisis you are seeing. what happens when diesel supplies come low or tickets too expensive for the american population to afford? that is something we will keep an eye on. let's get a check on the markets

because it is still painful when you look at the stock market. you are seeing some red on the screen. we were down 1%, that has intensified, down 1.2%. we are seeing pain in the bond market, yields coming higher and higher. some of this will be on the back of the moves you are seeing from the last two days. that will be a significant piece of the equation. the dollar becomes stronger and stronger as yields come higher. what you are not seeing as a feedback loop into the commodity space but perhaps a feedback loop into the stock space. that will become part of the equation on the earnings fear. p&g talking about shargh dollar. transcendent transit talking about a stronger dollar. pepsico, even. how much pain do start to see anna corporate america? it is a big we are going to talk about quite a bit in the coming days and months. canada's inflation rate comes in

harder than expected. , heating up pressures. this is bloomberg -- harder than expected, heating up pressure. this is bloomberg. ♪

quirks -- >> gas prices have come down every day the past week. they are down more than $.27 per gallon wisconsin the past week, 27 cents in oregon, $.16 in oregon, $.17 in indiana. in just the last 10 days. that is progress. but they are not falling fast enough. families are hurting. you have heard me say it before, but i get it. i come from a family where if the price of gasoline went up,

we felt it. gas prices squeeze family budgets. at the -- when the price of gas goes up, other expenses are covered. that is why i have been doing everything in my power to reduce gas prices since putin's invasion of ukraine caused the prices to spike and to rally international oil markets. i have focused on how we can protect american families from the spike and give folks a little breathing room. today i am announcing three critical steps that my administration will take to reduce gas prices. first, the department of energy will release another 15 million barrels from the strategic petroleum reserve, extending our previously announced release through the month of december. independent analysis has confirmed that drawdowns from the reserves so far have played a big role in bringing down oil prices, bringing them down.

so, we will continue to responsibly use that national asset. right now, the strategic petroleum reserve is more than 50% full with more than 400 million barrels of oil. that's more than enough for any emergency drawdown. with my announcement today, we will continue to stabilize markets and decrease prices at a time when the actions of other countries have caused such volatility. i have told my team behind me here to be prepared to look for further releases in the months ahead if needed. we are calling it a "ready and relates" plan. this allows us to move quickly to reduce oil price spikes and respond to international events. secondly, we need to responsibly increase american oil production without delaying or deferring our transition to clean energy. let's debunk some myths.

by -- my a ministration has not stopped or slowed u.s. oil production. we are producing 12 million barrels of oil per day and by the end of the year we will be producing one million barrels more per day more than the day i took office. we are on track for record oil production in 2023. today, the u.s. is the largest producer of oil and petroleum in the world. we export more than we import. i have heard from oil companies that they are worried that investing in addition oil production today, in case demand goes down in the future and they will not be able to sell oil prices at a competitive price later, we have a solution for that. i am planning to refill the strategic petroleum oil reserve in the years ahead at a profit

for taxpayers. >> the u.s. government will increase. oil companies can invest to ramp up production. with confidence, they will sell their oil to us at that price in the future, $70. refining and refilling the reserve at $70 per barrel is a good price for companies and a good price for the taxpayers. it is critical to our national security. since march, the average price of oil has been more than $90 per barrel. that is the highest since 2014. by selling from the strategic petroleum reserve, at the higher price of $90, earlier this year, then refilling it in the future at a lower price, $70, i will actually make money for taxpayers, lower the price of gas, and help. production, all while totally

consistent with my commitment to transition to clean energy. my message to oil companies is this: you are sitting on record profits. and, we are giving you more certainty. so, you can act now to increase oil production now. third, i am calling oil companies to pass the savings onto consumers. consider this: in the second quarter of this year, profits at six of the largest producers of publicly traded oil companies were more than $70 billion, 70 billion dollars in just one quarter, 90 days. so far, american oil companies are using that windfall, the windfall of profit, to buy back their own stock, passing that money onto their shareholders, not consumers. in fact, in the first half of the year, those same companies spent $20 billion buying back

their own stock. most important, buying back the most significant buyback in the last almost a decade. that's great if you own a lot of stock in oil -- in an oil company are you an executive at an oil company. it puts a lot of money in your pocket. that's how you get paid. but, it's not the case for the vast majority of americans. here is another thing. when the cost of oil comes down, we should see the price at the gas station at the pump come down as well. that is how it is supposed to work. that is not what is happening. in the past two weeks, the price of oil has fallen four dollars per barrel. that is thanks in large part to steps we have taken this year. the price of oil has fallen nearly $40 a barrel since mid june. that is a 30% drop in the price of a barrel of oil. guess what? gas prices have not fallen much.

it's not right. gas prices at the pump should be lower. in fact, if retailers and refiners were earning the average profit they have made over the last 17 years, americans would be paying at least $.60 less per gallon for every gallon they buy. 60 since last for every gallon they buy. that makes a big difference to a family. my message to the american energy companies is this, you should not be using profits to buy back stock for dividends. not now. not while a war is raging. you should be using record-breaking profits to increase production and refining. invest in america. for the american people, bring down the price you charge at the pump to reflect what you pay for the product. you will still make a significant profit. your shareholders will still do very well. the american people will catch

the break they deserve and get a fair price at the pump as well. one more thing i want to mention today. our country needs to pass permanent reform. to accelerate the development of clean energy. right now, the process of getting clean energy products -- projects approved is too cumbersome and time-consuming. i am asking congress to pass a permitting bill to speed up the approval of all kinds of energy production from wind to solar to clean hydrogen. because, we need to get this moving now, quickly, now. if we do this, it would take historic clean energy investments i signed into law and put them into action. in fact, one independent analysis has already estimated that the $369 billion we are making in federal investment

that will generate, just sets, $1.7 trillion in total public and private investments in years ahead. you can increase oil and gas production now while still moving full speed ahead to accelerate our transition to clean energy. that way, we can lower energy costs for american families and enhance our national security at a very difficult moment. let me close with this. i know it has been a rough four or five years for the country. for a lot of families, things are still tough. the choices made by other countries are affecting the price of gas at home. this is why i have been acting so aggressively. without the steps we have taken over the past several months to ramp up production and lower prices and get relief to consumers, gas prices would be higher than they are today. and, we will keep doing

everything that we can to keep it going, to ensure our energy independence and security is available and to lower gas prices at home and give folks a little breathing room. we have to remember who we are, the united states of america, for god sakes, there is not a single thing we cannot do when we put our minds to it. we can strengthen our energy security now. we can build clean energy economies for the future at the same time. that is totally within our capacity. totally within our capacity. gas prices are coming down. we will do everything we can to make sure they continue to come down. and that companies act responsibly so it is reflected that the pump. thank you all and may god bless you and protect our troops. >> mr. president what is your response -- president biden: i don't hear, can you speak louder? >> what is your response to republicans who say you are only doing this as pr release to help

democrats in the midterms? president biden? where have they been the last four months? >> is this blended to motivated, before the midterms? president biden: i have been doing this for how long now? is not politically motivated. it is motivated to make sure i continue to push what i have been pushing, making sure there is enough oil being pumped by the companies so that we have the ability to be able to produce enough gas that we needed home, oil we needed home. at at the same time, keep moving in the direction of providing for alternative energy. that is what i have been doing. the problem is these guys are asleep. i do not know where they have been. the price of the pump should reflect what the price of a barrel of oil costs. it's not going down consistently. >> mr. president -- there is martial law and a part of ukraine, what does that say to

you about what his thinking is in the war in ukraine now? -- president biden: i think vladimir putin finds himself in an incredibly difficult position. what this reflects, to me, is it seems his only tool available to him is to brutalize individual citizens in ukraine, ukrainian citizens, to try tournament ate them into capitulating. they are not going to do that. thank you. >> sir, do you want to ban the export of petroleum products? >> we have been listening to president biden addressing the media with that update that obviously we were expecting because of bloomberg's reporting, the ramping up of the emergency reserves and that specific call from president

biden to refill the strategic petroleum reserves when oil prices are at or below $72. joe matthew has been kind enough to join us as part of this news. joe, beyond that, they have a specific call out to the energy industry to use the opportunity for any cash windfall to boost production as opposed to say, appeasing shareholders. what was your reaction to the announcement? joe: it is a new wrinkle on this. the president, the white house, has been asking oil companies to increase production since the start of the role -- more in ukraine, since oil prices starting reaching historic highs earlier in the year. here is a sweetener. we need to refill the spr that is 50% empty at this point. i don't know how $70 a barrel sounds to oil producers that are selling oil for $80 a barrel or more at the moment. the president has said, we are

telling you we are about to buy a lot more oil. we will see how that drives. it is interesting to see oil stocks for the most part higher, the xlt is up even as the president asks them to stop buybacks of dividends. i do not think that will go well with oil executives and i am sure we will hear from them. >> fascinating point. at the end of the day he is saying, we will be a buyer of last resort, to some extent. the question the reporter screamed at the president as he was leaving was crucial. a potential export ban. joe: it is interesting. bloomberg has done reporting on all of the angles about this story. the idea that there could be controls without a ban on exports would be had after the midterms. it is unclear what impact that could have on prices. in some areas it could impact prices, particularly areas like the northeast that import a lot

of oil. that's not set in stone. that is something they are arguing about in the white house now. what should those controls look like? what is the forecast for prices should that happen? >> joe, thank you. you can catch the sound on with joe fara -- 5:00 eastern weekdays on bloomberg radio. stay tuned for more discussion there. in canada we are battling inflation as folks are in the u.s. and around the globe today. we learned cpi came in hotter than expected. we caught up with the mo capital markets who laid out how the data affects the bank of canada's interest-rate rate decision next week. >> bank of canada has been clear. the breadth of the strength in inflation is notable. the cpi numbers, both the median and the trend, were stickier in the month.

they should have declined. we saw big gains last year. the hurdle was low. they did not follow. they held steady. the brats of inflation is too great now. >> let's get more perspective on the story with veronica clark, a global market economist with citigroup. the expectations of a more aggressive rate hike seemed to materialize after the inflation print today. veronica: it is a tossup this next week's meeting is a 50 basis point hike. that is still my base case. or, it fit is another 75 basis points. this morning inflation headline was stronger. the four inflation met -- the core inflation measures, the trim and median where stable in september but revised the lower. some inflations data we got earlier this week i think is enough for them to justify slowing to 50, but it's a

tossup. the minneapolis fed president you mean that those prints are a bit softer, like a point three, 0.4, but the rest risk is

definitely that they could be stronger again. veronica, i also want to talk about what's been happening in the currency world this year. it's no secret how strong the us dollar has been and now canadians are dealing, for example, other countries as well, with the inflationary effects of that. certainly at the grocery store. the idea that the us is exporting inflation and simply through a stronger currency. what's your perspective on that? yeah, that is definitely a risk for the rest of the world, canada included. and we heard from governor macklem say that, you know, a weaker canadian dollar does mean more. that has to be done in terms of rate hikes. i do think the you know, the bank of canada is probably seeing some more signs of, you know, softer activity in the housing market. some more signs of underlying inflation pressures that are easing. so it may be want to pause rates a bit sooner than the fed, but if there's anything that will make them keep going, i do think it's the weak. weak dollar front of the clark citigroup global markets. economist, we thank you as

always. your time, your perspective. quick programing note that coming up at 3:30 p.m., new york time on bloomberg, my colleague kathleen hays speaking exclusively with saint louis fed president jim bullard this weekend. he left open the possibility that the federal reserve would raise interest rates by 75 basis points. not at the next meeting, but at the next two meetings. that interview is a must watch. be sure to tune in for that coming up on this show. tesla is set to report earnings after the bell. we're going to dive into what to expect that converse station. coming up next, when our resident expert ed ludlow joins us shortly. this is bloomberg. my first options trade. well, let's just say i did my homework. i love the courses, enjoyed the videos, studied all the strategies. but i still wanted someone to walk me through it. so i called up to ameritrade. that's when i met eva. she's an option specialist to talk me through the process and help me learn all the tools as i made my very first option

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amid demand questions, certainly, and also twitter deal questions. let's get more perspective. bloomberg said ludlow covers technology. peter is joining us from new street research where he serves as head of technology infrastructure. >> they were not able to been delivered because of logistics styles. elon musk took to twitter to reinforce the message that going forward there needs to be an end of the last week of the quarter sprint for them. he has maintained demand has held up well. in the past when we think about

margins, macro headwinds his company is facing, they used the lever of raising prices to protect margins. if this -- it is often that car: -- zach kirkland, the ceo that gives us insight around what they are doing to protect margins. they keep investors looking to the horizon for new products like cyber truck and how quickly they will rollout products like semitrucks. kriti: pr, hop into this conversation. -- pierre, hop into this conversation. i am curious. pierre: you need financing.

interest rates matter. you need a positive economic environment to make the decisions. whatever happens in the next couple years i expected to behead the way we have historically seen automakers being hit. what does that mean? in the auto market, deliveries dropping by 10%, 15%. in a recession that's not uncommon. if you reflect that on tesla, think about it slowing by 10% to 15%. at the same time, tesla has different economics and distributions from other audio -- auto manufacturers. they can adjust distribution very rapidly. they don't have to deal with very complex distribution inventories. so, the company is set to grow

units 50% a year going through a year when may be demand would be held back by 10% will keep going to probably slow down and create some disappointments. but, nothing very challenging to the whole story. it has a very significant growth outlook even through recession. john: ed, let me bring you back to the conversation. we started this segment alluding to the fact that one elon musk has plenty on his plate these days. i would imagine that however that numbers look, everybody will try to piece the story of twitter into the broader narrative. ed: elon musk said he will participate in the call. he said previously he would not put a spade in every call. his musk too every -- attracted by being at the helm of spacex tesla, and twitter?

does he sell tesla stock to fund the purchase of twitter? what does that mean? i defer to pierre on that risk element. kriti: pierre, your take on the twitter/tesla relationship? pierre: elon musk is a busy man managing tesla, spacex, involved in narrow link. --neuro link. tesla is a distraction. you have to present against the fact that this is becoming more and more of oil oiled machinery -- well oiled machinery. elon musk's implication in day-to-day operations, he is more involved.

he is very critical. he is a key man in attracting talent, pushing talent. but he is not anymore the problem solver that saved the company several times in the past. he can get involved on twitter. i do not think that will produce significant risk to tesla. the key concern for tesla stockholders is how will elon musk finance the deal? well he have to sell more shares for that? that's a concern. kriti: that is something we will keep an eye on. thank you. a quick check on the markets. you are still seeing a little pain in the equity market, down 1.2%. the 10 year yield 411 on the yield of about 10 basis points pushing the dollar a little

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>> the most crucial moments in the trading day, bloomberg markets: to close with caroline hyde, romain bostic, and taylor ratings. -- taylor riggs. caroline: two more hours of trading and a more cautious day. raquaam: --romaine: we are coming off two straight days of about -- broad-based rally swept on its head to a broad-based selloff. 43 of the 50 s&p stocks in the red. taylor: yields are higher.