kriti: a tug-of-war between beaten up text stocks and strong cyclical earnings. bloomberg markets starts now. let's start into price action. looking at the equity market, down .1%. lots of volatility from green to red. what you need for a sustainable equity rally, you do not have it today. there is a tug-of-war between tech names and some of the more

cyclical names, caterpillar, honeywell. we will dive into that. the 10 year yield is moving, 394 at 4:00 or 5:00 a.m. this morning. the 10 year yield at 4.07. a lot of move intraday for the treasury market. down five basis points from yesterday's session. it's not just the bond market. across the atlantic the ecb is hiking 75 basis points. it's not enough to give a boost to the euro-dollar. that is down below parity. weakness there and strength in the dollar to that end. strength of the dollar is not weighing on brent crude. oil is rallying hard, 1.2%, trading around $96 to the barrel. when it comes to the economy, are we growing given the technical recession is in the rearview mirror? joining us to talk about it is the bloomberg economic and policy correspondent michael mckee.

talk to us about the gdp data we got. michael: it is a good news/bad news story. the good news is for the first time this year we saw gross in the u.s. economy with the third quarter expanding 2.6% in the u.s. a -- at an annual rate after two quarters of contraction. under the hood, not as good. consumer spending is positive, but much slower than earlier in the year. business spending is nothing to write home about, though it too is too positive. inventories were much lower and that subtracts from gdp. trade, net exports, the exports of u.s. trade in the third quarter was very high. imports fell. that contributed to gdp, 2.77% more than the gdp gain itself. durable goods orders are also out today. for the month of september, the last month of the quarter, we are seeing a slowdown, particularly for capital goods

orders, things that goes into gdp as business spending, down .7%. it suggests all this will slow. the good news is if the fed is slowing the economy it should push unemployment up there is no sign of that yet. jobless claims numbers barely changed last week. the fed meets next week with basically 75 basis points baked in. the question becomes, what happens in december? this may depend on whether the economy is slowing as under the hood numbers in this gdp report suggest. kriti: the durable goods numbers almost echo what you are seeing in earnings. tech names are getting beaten down. manufacturing seems to be thriving. at the same time, the housing slump is reflected in gdp numbers. how do you square the two? michael: the economy is still growing. we are seeing people buying things and that is keeping factories going. there has been a backlog of

stuff because they could not get parts. now it may start to slow. the other thing is companies can beat earnings because earnings estimates have been lower. whereas, economists estimates had been for stronger performance and we are not meeting that now. kriti: you always wonder who is right and wrong. michael mckee, thank you. from the u.s. to europe. there is a lot going on there. the ecb hiking rates by 75 basis points, dublin to the highest level in more than one decade. all they prepared for potential spread widening in the face of a recession wall street has all but guaranteed. take a listen to what christian schulz had to say. >> they created an instrument to deal with spread widening that is not caused by a policy ever

that governments themselves need to fix. that is a warning to this italian government not to play by the rules. it is also a guarantee that if they do, then, the ecb will be on their side. will it be enough if trouble really starts hitting the proverbial? we are a bit skeptical. it is big on tape -- paper, this tool. but the mechanism of activating it, everybody agreeing on it is different. it is a different situation but it starts with italy. they have to play by the rules. kriti: joining us is megan graham, the global chief economist -- megan greene, the global chief economist at the kroll institute, who was recently in italy as well. it italy at the crux of whether the ecb policy will work or not? megan: it could be. i am more sanguine on italy that i had been. there is not a lot of extra money in italy going into this

winter. it is possible italy is already in contraction. the only one buying italian bonds is the ecb. the ecb will not finance a flat tax or reduction in retirement rates. this department will have to fall into line. it has also been watching market dislocations in the u.k. off the back of the many budgets, probably, during some lessons. i have been less worried about italy in part because of the appointments charger maloney made in -- georgia meloni made in her cabinet, keeping the finance minister that watched and limitation under mario draghi. he has some experience. we can experience -- expect a business as usual brief from the mario draghi government. i believe the italian government will fall into line. if i am wrong about that the ecb tools will really be tested. the pep program, the reinvestments has been directed

towards italy to keep italian spreads down. in the run-up to the announcement of this government cabinet. the tpi may end up needing to be used if i am wrong and italy decides to try to paint outside the lines. kriti: you went exactly where i wanted you to go, the tug-of-war between fiscal and monetary authorities. the u.k. has been the poster child. we have seen elements in the u.s. as well. to what extent is this an actual threat to the effectiveness of what some center banks are trying to accomplish? megan: it is a huge threat, particularly in europe. european governments will have to spend more. through this winter, and more broadly, next winter, when it will be more difficult for europe to refill its storage without russian energy. if european governments have to spend more, then, that will be inflationary. that undermines what the ecb is trying to achieve in hiking rates and withdrawing accommodation to lean against policy. i think what we saw in the u.k.

is a sign of things to come for the rest of the developed world where governments will try to spend more. the markets will be the disciplining factor. central banks have to step in and paper over liquidity issues, paper over market is locations. if central banks keep doing that, as the bank of england did with the ldi blowup, if they keep firing up qb, investors will eventually say that is inflationary and that undermines the central bank attempt to lean against inflation. it is a huge risk going into next year. kriti: at least stateside it seems like the federal reserve hiking of rates has shown up quickly in mortgage rates, in turn taking out momentum in the housing market to the point that the housing market is subtracting the most from u.s. gdp going back to 2007. what a housing crisis in the u.s. be that bad? megan: yes, a housing crash would be bad.

but, defined crash. i don't think we are looking at a repeat of the subprime market in 2008. it is worth pointing out that a softening of the housing market is the point of hiking rates to some degree. it is a feature, not a bug. how you will reduce demand to bring it down to the level of supply so you get equilibrium and not sustained, high inflation. i don't think we have the same exposure to the housing market as before, the same subprime mortgages. we are not looking at a repeat of the global financial crisis by any stretch of the imagination in the u.s.. in the u.k., a mortgage crisis is a bigger risk because the links of mortgages is much shorter in the u.k. with the bank of england hiking rates pretty aggressively. but in the u.s., i am less worried about this. kriti: a fascinating system in the u.k.. they tick -- take mortgages out for five or 10 years instead of

a 30 year fixed mortgage. megan greene, thank you. next on the show, first word news with john island. john: the biden administration scaling back cap on russian oil prices following skepticism i investors and risk in markets. instead of strangling kremlin oil revenues by imposing a price limit, the eu and u.s. art like leely to -- elon musk, the world's richest mental twitter employees he does not plan to cut 75% of staff when he takes over the company. bloomberg learned elon musk denied in an address to workers at the company's office in san francisco, but the billionaire is expected to cut staff, causing anxiety. the $44 billion deal is set to close this friday. homes in the hamptons of new york sold at the fastest rate on record. properties from posh long island beach towns were listed 70 days

before finding buyers, down from 96 days from year earlier. the median purchase price was $1.6 million, tying the record high. global news 24 hours a day on air and bloomberg quick take powered by more than 2700 jenna ellis and analysts in more than -- journalists and analysts in more than 120 countries.

kriti: this is bloomberg markets. i'm kriti gupta. shares of view rose today after shares of softbank raised $200 million -- $200 billion of convertible notes. scott drexler of rx are joined --rxr and sonali basak. scott, you first. i want to ask you about the deal. walk us through the opportunity, the terms of the deal and the terms of the convertible. scott: every owner, real estate operator, has been struggling to find ways you can actually reduce your energy usage, reduce your carbon footprint. for years, we have been talking to view about their product that enables you to do that in a very

effective way. this situation is, view went public a few years back and there to -- their shares have been trading down. we saw an opportunity to take an extra neri company with an extraordinary profit. and bring cap -- extra neri product and help them accelerate their business. we are injecting a convertible that converts up 25%. i am joining the board. i am a big believer in everything view has created. it has been around since 2008 and has 1400 patents, 40 million square feet of class already out. it is a proven company with a proven product at the intersection of find to address one of the greatest challenges the real estate industry has, dealing with our carbon footprint. sonali: when you look across the

market, how does a convertible note help you weather this storm and what will you do with new funds? scott: -- rao: the capital is the fuel that helps us grow, build business, and get to profitability. this helps us quds out. it is capital that is a fuel to build tech to serve customers. kriti: talk about public versus private. this is something sent ali reports on all the time. this trade-off. you went public a while back. do you think you are still a private company? dr. rouse: i have been --rao: we have been private for 12.5 years and public the last year and a half. going public helped us access markets and build awareness with a broader base. and partly, this is a company we already knew would be built in public markets long-term. this is a product that will be

global and changes the infrastructure of the industry. it is made to be public, we just need it ready and the markets that were opened allow us to do that. now we will grow in public markets. kriti: you lead this deal alongside a group of investors. our investors in the market thinking about using a convertible note structure given the market challenges? what do you expect at the end? scott: what is interesting and unique about view is that they have a proven product, 40 million square feet already used. also, while this is a product we have all looked at, there used to be a cost premium for people who wanted to use this dynamic class. you save energy, but have to save more. -- pay more. in the recent inflation reduction act there was an investment tax credit. now the cost of using view glass is on parity with traditional

class. anyone building a new building today, there is no reason to not use view glass, save energy, have a better experience. the business proposition is simple. they have a one million square-foot factory with a significant amount of money in that factory. now the demand that comes through when the factory is up and running will create significant free clash flow -- cash flow. we are not reinventing the wheel. we are allowing the team to make that happen. now the demand will be in place to get optimized utilization and generate the free cash flow we think will make an extraordinarily profitable investment. kriti: scott, i want to ask you about the real estate environment broadly. we just had the wonderful megan greene of the kroll institute here to talk about the housing process may be in the works. that could feed the commercial real estate sector of not just new york but around the world.

talk about the profitability given the macro environment. scott: there is no doubt in many places that we are going through an economic cycle with interest rates impacting the real estate market. what is also attractive about view is they play across multiple spectrums of real estate. they have clients like google and amazon. they are in multifamily. housing, particularly on the multifamily side sees tailwinds of growth. health care is another area with tailwinds. hospitals, infrastructure, airports. many airports around the country are building two terminals at jfk international airport, and working with view on that project. when you think about real estate today, some some sense of it will be hurt beyond just the cycle. they will have tailwinds coming

out of the cycle. housing, health care, infrastructure, that is the sweet spot of the view clientele and it will do really well coming out of the cycle. kriti: thank you for your time. breaking from across the atlantic, on today's rate hike the ecb was not unanimous in the 75 basis point decision. only three officials wanted a 50 basis point hike. we are going to break a little more news in the next block. the ecb did not mean to imply slower hiking with the remark on progress they made earlier. we will dive into the details of the reporting next. michael mckee joins us in a few minutes. this is bloomberg.

kriti: this is bloomberg markets. breaking news from across the atlantic. the ecb rate hike today, 75 basis points, was not unanimous. three officials wanted only 50 basis points. to break down the significance is bloomberg economics international policy correspondent michael mckee. talk to us about the significant that comes one day after we saw a similar dynamic in the bank of canada. they were slowing down from 75 basis points to 50. now you are seeing dissent in the ecb. what does it mean? michael: they are looking at the economic prospects for their region and they decided that there is a chance of a significant slowdown. some members of the ecb's governing council decided they only wanted 50 basis points, taking a more cautious approach. however, the ecb operates by consensus. they came out with a substantial consensus to do the 75 basis points.

that left the question, what do they do at the next meeting? there was a substantial discussion of that. it included the phrase they made substantial progress in normalizing policy. many people felt that was a slow down and they did not want to signal one way or another. they put in that idea they would raise rates at the next several meetings. there are no numbers, but the markets have taken it as a dovish, not progress, but outlook -- promise, but outlook. kriti: the bank of canada, from the bank of her point of view, jay powell has over and over receive -- referred to that era of the 1970's, the 80's, paul volcker, they should not have paused when they did, they need to go full out and to go full out and be aggressive on inflation. is not that the message that the

bank of canada and ecb is listening to as well? michael: the situation of europe is different than the u.s., where we had contributions to inflation, significant contributions from the stimulus package, with more money chasing fewer goods. the problem is that the europeans have particularly the war in ukraine and energy prices and the ecb can do a lot about that. because energy prices are so high, they anticipate they are going to have or are already in a recession. their view on what they need to do to try to get inflation down is a little different than the fed's. the fed wants to kill off demand. ecb knows it has a hard time doing that with recession in the forecast. canada is somewhere in between. they are in for a significant slowdown if not recession, so

the bank of canada is careful as well. laxalt out --kriti: i want to ask about the balance. the fed is in full tightening mode, quantitative tightening. the ecb is hesitant to dive into that yet. we had bloomberg reporting that that may come soon or may not. should the ecb be more look -- aggressive about the liquidity crunch? michael: we have been told that the ecb governing council will try to decide on a plan at the december meeting but will not announce it then. they will come to an agreement and slowly roll it out so markets get used to the idea. they do not want to shock the market. they don't want the problem of the bank of england hat with banks or financial firms unable to keep their trades going. that is kind of the rollout plan for the ecb. remember, with app and the pep program they are still using their balance sheet and they may not need to do that with italy and other countries. kriti: there is no immediate

market reaction off the headlines, perhaps because the european bond market is closed. bloomberg's mike mckee, we thank you as always. this is bloomberg. when people come, they say they've tried

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>> welcome to bloomberg markets. >> let's dive into the price action. we are opening the stock market with some green on the screen. it did not last long. it whipsawed. it is a battle between tech names as well as strong slick -- cyclical earnings. look at the 10 year yield. that is where you are seeing a bid for the bond market. on the 10 year yield, it is coming down five basis points, but the volatility is larger.

the dollar is not far behind it. it is actually stronger on the session, but the euro-dollar is not able to get a boost from the 75 basis points rate hike you softened atlantic. that is lower. you are seeing a pair trade below parity once again. crude is still trading with the high 90's. 1.6% on the day. >> we are seeing headlines. weakness for the s&p 500, but the dow by comparison is seeing stronger performance because of a number of components in the stock index. they are skyhigh today, and a caterpillar at the top of the list. biggest pop since 2020. 9% higher. decent demand for all of its equipment these days. encouraging outlook from another dow component in merck, with the nasdaq 100. the bottom line performance from cable giant comcast is pleasing investors. it is holding a gain of 3%, not to suggest that all of these earnings stories are the only things people are feeling

exciting about. there is credit with a record drop today. another loss and lots of restructuring continuing on the horizon. obviously, a big story to track with the troubled financial player, and with technology, we have been tracking the performance of meta-. with a dramatic weakness in shares, the parent company right down near $30 a share. more than 20 basis points. we will watch the technology players. in canada we have shopify, which is up 18%. this is a stock that has taken a huge hit this year. on the revenue side, they were able to please wall street and bay street estimates with their souls. >> some thing we will keep an eye on. a major story. mcdonald's is announcing that they beat estimates. they can't get enough of those french fries. diners are proving they are going to pay more for the food,

despite facing increasing inflation rate pressures print let's bring in leslie patton. thank you for joining us. i want to specifically ask about the headwinds. we are hearing this across the board, but mcdonald's -- they are a major company with exposure your. that is how it is being affected because the dollar is so strong. >> europe is a huge market for incoming countries like u.k., france, germany. it does affect them more so than their peers. that is going on right now. we are seeing a currency effect, and at the same time, it is going to continue for a while. it will impact the fourth quarter. it will infect the full year as well. >> one of the biggest takeaways is that this is an encouraging sign if you can compete with

mcdonald's. where is this one strength versus another week this? >> a great question. i think they mentioned on a call that they are gaining shares, especially with low income consumers. that does not bode well for their immediate competitors like a burger king or wendy's. they may be taking a share from some of the weaker pizza players. we are competing with mcdonald's, and we are seeing signs of cutting back. it may not be the best position. with commodity pressures and labor costs, they are struggling in the previous quarters. our those inflationary risks till and issue? >> they are. on the call, paper, packaging, utilities, energy costs, especially in their market of europe.

they are going away anytime soon. they're going to continue to impact margins. >> really helpful breakdown of the mcdonald's story. we appreciate it. leslie patton making it down for us. let's stay on the earnings theme because southwest says it is looking forward to a profitable fourth quarter. the carrier posted strong third-quarter results despite some of the results and staffing issues. it is expected to bleed into next year. for some analysis, we are joined by george ferguson, md senior aerospace analyst. let's stay on this theme. with the mcdonald's side, labor costs talked about the challenges that any company is dealing with right now. in the case of a southwest, they are always trying to as much of a lid on costs as possible it can pass on to the customer. what stood out to you in the

quarterly results. >> thank you for having me on. at an airline, you are always looking at the largest cost being fuel, or one of the largest costs. it can compete with each other, and it is the highest cost in your income statement. fuel prices were up, compared to last year. southwest has a very large hedge, which has helped them reduce the price of fuel that they pay, and they passed some of that onto the customers. they can fill airplanes, fly more of their routes, and that is why i think it is a big part of southwest success in three q. that continues as we get into q4 has the airlines expand back to their 2019 doubles of capacity, they receive efficiencies and economies because of that. it allows them to drive down

costs. they are a higher labor costs as well. as they drive those costs down, they can pass that on to a customer and get lower ticket prices and fill airplanes more. it all works for them. >> what about things like the labor unions and labor negotiations going on. john alluded to it, but you are still seeing a contract negotiated with pilots and flight attendants. is any of that going to show up in ticket prices? >> southwest is accruing for that right now. what we've seen is a couple of agreements hinted at in the marketplace. some are done. alaska looks like a has a deal with its pilots. he saw labor costs rising 15%. there is some inefficiency in alaska's number. it was not all just pay increases. we generally think with america united, the pilots will have a high 18 level increase in pay. that is a headwind that all of

them will ripple through in the industry. we have to bear that next year. the way you bear that is you go to larger airplanes, you fly, you get more flight suit user airplanes, and more often during the day. maybe an extra flight on every airplane. you try to fill them as much as possible. those are the efficiencies you go for to try and drive down the higher cost, but it will all be buried as we go into 2023. >> before we start to go, one take during earnings seasons for the airline players was most of the messaging was that there is a decent amount of demand out there. you have to wonder, depending on where the economy is next year, who walks away. how closely will this watch the specifics brand loyalty, going into next year. >> with the real challenge, as

you get to a downturn, the airlines are willing to cut pack incapacity, and affairs of and have some sort of competitive moat around their business, they can do a little better. i think some of the full-service carriers may be better positioned with their fortress hubs as business continues to come back. you get a bit of a tailwind from that, and you could see some businesses pay through the downturn. even though, they are having a rough patch with earnings, or whatever. these companies may still want to get their salespeople out to see clients. it may be more of a tailwind of business. it full-service that does a little better in the environment. but southwest is a strong brand loyalty, and i think that will continue to fly them through the downturn because of that. >> always something to keep an eye on. george ferguson, bloomberg intelligence, we think you as always. coming up, another big day for tech earnings. with warnings out.

we'll talk about what investors are expecting as the threat of recession looms heavy. this is bloomberg.

>> amazon and apple are due to report their quarterly results. both tech companies are posting numbers from their popular products and services. this is the prime day event, and the new iphone 14. it has a preview on those earnings and what to expect with bloomberg's ed ludlow. and also a senior rfa senior industry analyst. we got grim earnings from some of the other major tech names. alphabet, microsoft, and meta as

well. but apple has a fundamentally different distance model. will they be this exception? >> apple is no magician. they are not immune to macro factors. i don't necessarily hope any investor is hoping apple saves the day, but that being said, tear point, apple is definitely a different beast and some of these other companies, and i think at the very least, it will accompany a number that will beat their numbers. they don't explicitly guide, but they are going to give some allocative insight out there. but this is a consumer arena where we think it is definitely softening. apple, given what they felt here, they will hold up better than others, and when you look at the other side of things, they have by far the best brand, but they are actually falling.

they are holding onto those larger -- margins better than others. >> by comparison, there is a margin story. it is a different one. not a for document the cloud business, but historically, razor thin margins for the business. what is the general buzz heading into the report tonight. >> i think it is slightly more optimistic about the numbers coming relative to the numbers from the other mega tech names. they coming up with a couple or -- of quarters of significant double-digit topline growth. you have to remember, in july, they held a prime day. there was a lot of hope that prime day drove things on the e-commerce site. amazon is not greater than the sum of its part. there should be a great emphasis on prize additions with advertising.

but at the end of the day, it is likely that amazon lives or dies by its old cast holiday quarter. with retails, there is a strong gsp print. there forecast has a different amazon. it is focused on cost and boosting profit, but remember, it was a baby, so that is where a lot of the emphasis is. >> let's bring it -- break it down from an fx point of view. i'm looking at rfa terminal, and our financial analyst analysis function on bloomberg. 22% of their revenue has not been in line with the effects exposure. with the likes of cushioning the blow. >> i did note would cushion the blow.

it is still very north american centric, it is a key factor in the earnings season. they have to get ahead of the issue of the stronger dollar by raising prices from the app store and in app purchases. recently, for the wider portfolio services. you have to remember that a big factor of this is prime subscription brit it is a global offering, and they second morning in october, prime day, is a global event in 12 different markets. it will be interesting to see the impact of a stronger dollar, but amazon is a profit machine, and there is faith that they can keep it as a profit machine, and we want to see discipline, financially, to make that happen area >> let me bring you back in, and we know that fx is going to come up. it has come up, so it's bring it back to the apple story specifically. ed was alluding to it, but how closely will you be watching beaks currency factors. >> listen. you can't avoid these factors. we are looking for a 600 basis

point headwind or apple in the quarter. there is a guide even further. headwinds going into december like others. out there as alluded to, so apple is clearly an international company, and is going to be exposed. it makes a point, and it got ahead of this. by increasing prices, and increasing prices internationally. you are also talking about them increasing prices of holding prices, but also, i think you will see a higher average just on a mixed side of things. kind of a mini, and coming out with a pro, which is a plus for all intents and purposes is not the best seller out there, but i think what they've done kind of separate some of the pro devices from the standard devices. it will allow the company to shine, and we know that they launch these products a week earlier than expected on the iphone side of things. that will also kind of biting

nice upside for september going forward. >> 30 seconds. i want to ask you about the product line you're talking about. there is a price increase, but apple is not the dominant player in the mobile phone industry around the world. not as it is in perhaps the night states in europe. to what extent are those increases going to hurt presence in say some of these emerging markets. >> listen. i don't know if they necessarily care about market share at this point in time. at the end of the day, it has a continuous set. their intent is for the best possible product for consumers, that is what they continue to do. we think part of the strategy is to increase the selling price on average long-term. that is two to 3%. that is clearly what were going to do over the next couple of years. >> we haven't seen a negative quarterly earnings surprise from the company since 2016, so we will see how it plays out. thank you very much.

cfra senior industry analyst there on the apple story, and ed, who has never had a day off bloomberg's ed ludlow covering the amazon story and all things tech after the belt tonight. the american middle class is facing the biggest hit to its wealth in a generation. going into the midterm elections, we will have more on that developing story, next. this is bloomberg.

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>> this is bloomberg markets. with kriti gupta, it is time for what it's worth. we are looking at the number of 300 $66,100. that is the average wealth of adults in what the diversity of california berkeley calls the middle 40% true that is the population that also between the 50th and 90th percentile. the average has fallen 7% since hitting a march peak that is the biggest hit seen since the

recent global financial crisis. the decline in wealth of u.s. middle class is the focus of today's bloomberg big take. mimi collins was involved in the story and she joins us now. it is an incredible story. not just this abrupt change in the wealth picture, but we are also seeing it ahead of midterm elections. ask that's right. that is what are reporting wants to zoom in on. a lot of people have talked about the middle class feeling the squeeze. what the data we saw says that the average middle-class family has seen a gain of wealth on average over these past five years. it is spanning two presidencies, in part because of low interest rates and a housing boom. as you know very well, we are also seeing a turn in terms of how people feel about the economy, based on that high nation we are seeing now. stocks took a hit this year, and

organs rates are rising to almost 7% on average. that has really changed where we are right now, even if people have more of a cushion than they have had in the past. ask we got some gdp data. to your house and point, saying that the housing investment has subtracted most from gdp going back to 2007, what effect you think it will have on the american consumer psyche when you start to see mortgage rates take a bigger chunk out of the housing market? >> that is a great question. we are talking about psyche when we talk about the midterm elections. it is a pivotal group for candidates. they tend to vote more often, they are big group in this country. as you said, housing is taking a hit, so what they are looking at is potentially, if they want to move, is more expensive. brent has soared, so that limits the ability to sell a home and move somewhere else without a big cost hit, and that is something that is definitely weighing on voters minds when they go to elections and go to

the ballot box. >> just the nature of how -- housing and related wealth, which is explored in the story, the fact that you are talking about something that at the end of the day has had an increase in value. it has less liquidity than in the stock market. >> that is right. that is a key point. we talked to people across the country, in california, in lansing and michigan. in north airliner. one of the things that we saw was an added home-equity gain. added value in the home. it is hard to take money out of your home sometime. it is not as easy to do as potentially taking money out of a savings account, of course. that is a dichotomy between if you are actually wealthier, not getting a higher salary, but overall feeling wealthier because of your home value and other assets going on it you can't actually access that management -- money as prices go up in the grocery store or in the gas pump, and it will in

fact impact voters when they go to the ballot box about how they go to the economy, even if they have had wealth gains. >> really quickly, about 30 seconds. i will put you on the spot. even though you are seeing low consumer sentiment, there are still spending at the end of the day. when will it catch up? >> i'm not sure. that is one of the unknowns in the economy because we don't know how much that pandemic savings is really still out there. how much of it is still out there. i think that is something we have to look out work, and you could hear more of the voices of the middle class in her big podcast out today. >> peggy collins. doing ats for us. we take you for your time. she mentioned and let's do it again. a brand-new podcast debuts today. it appears every week, and they will hit the hard-hitting issues. at the same time, markets are still showing it whip sawing sentiment. the s&p 500 is down .2%.

the nasdaq is taking it on the chin. the 10 year yield is still hovering around three dollars may parsons. to the dollar is strengthening. stick with us. market coverage ahead for jon erlichman. this is bloomberg did --. millions have made the switch from the big three

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quick serious first word. i am john heilemann. china says the president is willing to find ways to get along. that came before and possible meeting with a group of the 20 summit, from next month. they hope to maintain ties, despite disputes over taiwan and the invasion of ukraine. meanwhile, the secretary of state's accusing china of undermining the status quo that has kept both nations from going to war over taiwan. lincoln spoke to bloomberg in washington. he said that beijing is trying to seize -- speed up the seizure of a light -- the island.