>> retail sales coming in strong creating a domino effect moving the markets lower. i am kriti gupta up. "bloomberg markets" starts now. let's dive into the price action. a domino effect you are seeing, here is the fundamental idea, retail sales are strong, consumer sales are strong, does not mean the fed pivots are set down? maybe does the case not hold up? we dive into it with mike mckee but it is the narrative you see into the stock market the s&p 500 down .5% and not far behind is the nasdaq.

the real underperformer is down 1% as well. what is the curve ash it is the carbon version that gets me. we are at an inversion of 65 basis points, enormous when talking about recession calls specifically. what does that curve tell us? is it and you accurate -- is it an accurate indicator? brent crude $92 per barrel even as you have those headlines coming out of naches ukraine but poland as well. for now, the big focus is the u.s. retail numbers. retail sales posting the biggest increase in two months in october indicating demand for goods is broadly holding up. however, earnings continue to roll out, a little mixed picture for retailers. take a listen to what dana tells he says about the winners and losers of the industry. >> when we are thinking about changes going on, who has the assortment and who has value? i think one of the surprises tomorrow could be macy's and i think they have been more innovative than they have been in the past and i think we are going to see improvement there.

i think overall we are seeing on the specialty apparel side, there is newness. you look at a rossiya who has been taking share and the issues at the gap remain headwinds. i think they are shared donors, not shared gainers in the near term. i think when we do have all of the changes happening, you take a look at urban outfitters with anthropology and free people where i think a little higher income and people are buying, i think there is a benefit there. the retailers are having issues because they don't have the discretionary spend. and don't forget inventory levels, we have too much inventory, no one is getting rid of it as fast as they would like and that is going to mean a bargain for the consumer. kriti: retail numbers out this morning, stronger than expected and extending beyond expectations. five decades high inflation. for more let's bring in michael mckee and reporter brendan case. mike, i want to start with you

because on the one hand you have mixed results from retailers and brendan will dive into that in a moment but, these retail sales numbers, the consumer is still spending but perhaps in a more leveraged way, break it down for us. michael: the thing you have to keep in mind is retail sales are lag in part because the survey only collect about half the data in the prior month and we get a revision to the next month so we will have to see how it actually comes out but it was unexpectedly strong for the month of october, at least the first half of the month up 1.3%. much of that, cars, and much of a gasoline but still there was strength in other areas including the home furnishings area and food. how much of that is in inflation? we are not sure. looking at the retail sales numbers, the core numbers, the control number which goes into gdp, also up .7%. import prices, leave out oil because that is volatile, we are down .2%.

stuff we were buying from overseas cheaper. manufacturing slowed in the month of october according to the fed, just up .1% and a lot of that was cars. so maybe some of what the fed has been doing is slowing the economy, he just has not gone to the consumer yet. kriti: when we talk about not knowing how much is this inflation and real spending but for the likes of walmart or target, we have the numbers. from walmart i believe their inventory built up 70% they said was coming from the inflationary story. target on the other hand not really able to keep up in the same way as walmart. walk us through why we are getting mixed results from two major competitors. brendan: a big part of it is just a major shift in consumer behavior, at least as far as target stores go. the ceo said comparable sales at their stores rose 4% september and 0.9% october, so it was a really quick slowdown. they are thinking that metric might even fall this quarter,

which would be the first decline in five years. i think what you are seeing is a lot more spending on essentials and less on discretionary, which is the kind of product that target is known for, whereas walmart, with a bigger grocery business, is going gangbusters. they said there u.s. grocery business was posting comparable sales growth in the mid last quarter. kriti: midteens last quarter but mike, hopped back in here because it feels like the consumer is not necessarily spending in the same way they were perhaps a year ago and i want to zero in on this idea of spending more while spending more on their credit card. the idea perhaps spending is more leveraged. is that necessarily a bad thing? michael: we are seeing more leverage, more credit card use according to the new york fed which did a study on this for the third quarter and credit card use was up.

however, it is not significantly higher than it was pre-pandemic so basically people getting back to the old habits. the question is, are they paying them down? the number of's loans -- the number of loans going into default is low so maybe people are still using some of their savings to pay off credit cards. maybe they just want the miles on their credit cards. unless we see a significantly higher level of credit card use, it probably is not that much of a problem. we just do expect to see consumers a slowdown. it is hard to measure because we are going into the holiday season and everyone has to spend a little more but we will look for that as the fed continues to tighten. kriti: we're talking about a potential slowdown in the consumer and at the same time layoffs are definitely on everyone's mind. we see it big and bold in the tech sector but are we going to see that spill over into the retail sector? did any retailers say anything about that? brendan: that's a great question. target talked about that and said they would cut jobs. they said is they think they can

get two to $3 billion of cost savings out of their operations over the next three years, but they pointedly said that would not include mass layoffs. this is an issue while my has not directly addressed. it has slowed hiring a little bit for seasonal reasons compared with last year but it's stores are doing well enough with consumers searching for more value that that has not been a big concern from walmart so far. whether that holds next year, time will tell. kriti: walmart also came out with buybacks which i think is interesting given we are comparing a lot of these stock moves, especially this pain you see in target to each other but walmart had that built in case with buybacks and it is a company that outperforms in recessionary times. is it that confident about this consumer spending? brendan: it sounded pretty

confident yesterday and the point it was trying to get across is it things its business model can survive the ups and downs of the economy. to your point back in 2008-two thousand nine, there comparable sales were posting something like 5% growth. as you get tough economic times, you get more people shopping at walmart. at the same time they are trying to build other businesses outside of their retail operations, digital advertising, financial services, that will never move the needle from ace tales standpoint but are more profitable than selling groceries. they think they're well-equipped for whatever the economy might throw at them but they are also not immune. they are seeing a lot of gains now if consumers reach a point of much greater stress, you could even see some of them cutting back on walmart as well. kriti: mike, i will give you the last word, 30 seconds. brendan talked about the shared shift into groceries specifically and you talked about spending into things like cars and holiday items. does that mean pressures on

inflation coming from the commodity comp lek's in the rearview mirror? michael: i don't want to say in the rearview mirror but they are starting to fade and we saw that in the ppi report yesterday. we've seen supply chains normalize, we are producing more oriole -- more oil, and prices are starting to go down for the soft commodities, the agricultural commodities. the outlook is relatively good at this point but then again you never know what will happen in the news over the next few months. kriti: certainly something we will keep an eye on. michael mckee and brendan case, we think you as always. time for bloomberg's first word news with mark crumpton. mark: thank you. the leaders of nato and poland saying there is no indication a missile that struck polish territory was an intentional russian attack. nato says it is likely the explosion was caused by a wreck to ukrainian air defense missile fired against russian cruise missiles. >> this is not ukraine's fault.

russia bears ultimate responsibility as it continues its illegal war against ukraine. mark: that explosion killed two people in a village a few miles from the border with ukraine. donald trump says in order to make america great and glorious again he is going to make his third run for the white house. the former president made it official tuesday night at an event at his mar-a-lago resort in florida. meanwhile, stephen schwarzman, the billionaire chairman of blackstone, tells axios it is time for republicans to turn to a new generation of leaders and he will not be supporting the former president this time. after years of delays and billions in costs overruns, the space launch system rocket funders were the spacecraft lifted off from spending the -- kennedy space center on a .8 million pounds of thrust after hitting 100 miles per hour within seconds. the orion capsule was perched

atop and less than two hours into the flight busted out of earth's orbit toward the moon. 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. ♪

kriti: this is "bloomberg markets." i'm kriti gupta up. we have the headlines crossing the wire, coming from the joint chiefs chair millie speaking on the situation on ukraine. he says there is integrated air defense system needed for the region and is also saying russia will continue to fight in ukraine into the winter. he says as well the u.s. is trying to contact russia after the poland explosion. most elements are still coming as the press conference continues but i would like to continue to get more information from one of our washington reporters, daniel flatley, joins me now. you cover a little everything but i want to start with the mood in washington right now when it comes to what is going on in ukraine and by extension poland. daniel: i think there is obviously still a lot of concern over what happened.

the white house put out a statement not too long ago saying it will basically wait for results of an investigation, though it stands by the polish president's finding that the missile was part of a air defense reaction by the ukrainians to a russian missile barrage on their country, so i would say there is a little sense of not relief exactly but certainly a sense that what looks like yesterday to be a very risky and tense situation is somewhat diffused for the moment. then you have chairman of the joint chiefs of staff mark milley and a few minutes ago senator ben cardin on bloomberg talking about the need for more sophisticated air defense for ukraine so i think in washington, there will definitely be in the lame-duck session of congress a pivotal looking toward what the u.s. can do to further arm ukraine and

help them in this situation. kriti: that would be my next question. i believe you have quite a bit of experience reporting on congress as well. of course before covering the national security beat. i'm curious what the steps are here to get that additional help to ukraine. what does it require from congress? what does it require from the white house? daniel: there certainly needs to be a push from the white house yesterday i believe they put out what they will be asking for. i do not have the figures in front of me but i think it was to the tune of some 37 billion dollars to $47 billion -- to $40 billion, consistent with what they have asked for, lower than what was asked for this year. there is bipartisan consensus on capitol hill that the u.s. needs to help arm ukraine. i think there is some push from the republican side of the aisle that there needs to be some accountability for weapons sent and how the money is spent but they have not come into power as of yet and -- in the house,

republicans i mean, and senate will remain in democratic hands so you are looking at a divided congress i think it some ways that helps the situation in terms of getting the ukrainians the aid they need because there does seem to be postman terms this consensus seems to largely have held together so we will see how that moves forward. they will have to move quickly if they want to do it before the end of the year. looking at next year, things get more complicated because that is when things start to stack up in the agenda. kriti: one last question speaking of the midterm story, we are getting headlines mitch mcconnell has been reelected as the senate gop leader despite a party revolt i think in 11th hour challenge. nevertheless, he is once again taking the role. what is the significance of that? walk us through perhaps quickly the ramifications of that 11th hour challenge. daniel: certainly i think it is good news for ukraine. senator mcconnell has been a

champion of sending ukrainians everything they need and funding that the utmost level. i think it also sort of solidifies this take away from the midterms that there is a moderated -- moderating influence. sort of insurgent wing of the republican party is a bit chastened after the midterms. i think this is another indication of that but more to come on that front for sure. kriti: certainly something we will keep our eye on as these development unfold. daniel, we thank you as always. let's get more perspective from a true expert on the region, angela, senior fellow of putin's, how russia is against the west end with the rest. thank you for taking the time on such an important occasion. walk us through the steps it will take to actually escalate this war. what does the white house need to see now that we have had a

potential kind of intrusion into poland? angela: i don't think we want to escalate the war, we want to de-escalate. so i think they have to contribute their inquiries to see what actually happened. it is peers that it was a mistake, a ukrainian missile from an air defense system which was trying to defend ukraine against russian missiles. the idea there needs to be a better integrated air defense system there, it is dangerous. this could happen again. if people do not know what the cause is, it could indeed escalate. yesterday we were talking about nato having to discuss this, was this a an attack on a nato member? i think that has to be more communication with the russians. apparently they have not responded to our attempts to talk to them about this. kriti: angela, you are a true expert on the region. talk about the dynamics of poland between russia and ukraine. and by the way, i believe i read

this in your book, a big fan of the book and your research is this idea that poland has a long and complex history with russia. why is this an extra sensitive issue because of the history? angela: because the polls have over the centuries been invaded, occupied russians, they fought the russians and prized independence and sovereignty, which they got after the soviet union collapsed and when the warsaw pact collapsed. they prized that greatly. there were a stanched members of nato and the european union and they want to maintain that. they also have a troubled history with ukraine that they have overcome that now and they are determined to support ukraine because they know that if ukraine were to fall to russia, if russia were to win the war, they could well be next since putin has intimated that he believes russia has a right to a sphere of influence in what to be the warsaw pact states including poland so they are

fighting for their own sovereignty still. kriti: that's exactly what i was getting at, this idea where there are tensions between the poles and ukrainians but russia seems to supersede them. in your expert analysis of the situation, do you see poland invoking article four and by extension article five? angela: i think it will not do that now. the polish government was quite cautious yesterday and i think they have accepted the fact this probably was a mistake and it was inadvertently a ukrainian missile. so they would have invoked article four, to say had a meeting of all nato countries, had they believed it really was a russian missile but somehow they believe to have come to a conclusion that this did not happen so they de-escalate it. kriti: what about the relationship with poland with european allies? we know ukraine curried favor with the likes of france and the u.k., boris johnson making a big show of it.

where does poland stand in the relationship with the eu and u.k.? angela: the polish relationship with the eu is complicated because pollens to mastic government has enacted laws and measures the european union considers to be too repressive, so whereas poland is a staunch member of nato, its relationship with the european union is more complicated, and particularly with germany, where the polls have been demanding reparation's from the germans for historical issues. in this war, with ukraine, it is a staunch supporter clearly of ukraine and i think it also has told the other european union countries, the ones in western europe, that they weren't suspicious enough or russia in the past and in a sense the polls are saying we told you so. kriti: certainly something to keep an eye on as we see the next steps taken, not just in poland but specifically in the

worn ukraine. we did have the joint chiefs of staff say fighting will continue throughout the winter. our thanks to angela stent of the boxing -- brookings institute, a true expert on the region. still had, consumer credit trends are looking healthy but is that a good thing when you have inflationary pressures and retail spending? or are we getting back to old habits? we dive into its next. this is bloomberg. ♪

kriti: this is "bloomberg markets." i'm kriti gupta. something that caught my eye, it is all about the consumer. we had retail sales very strong this morning and also had retailers coming out with earnings that were pretty different. walmart, home depot, lowe's, they also beat, lowe's particular raising their forecasts and target saying we cannot keep up not just with the

competition but simply the inventory everyone else is getting river -- rid of, target has not had that success. the take away from these numbers is at the end of the day, americans are still spending but at what cost? inflation is rising, rents are getting more expensive, food more expensive, maybe this chart can explain it. in the white line you have consumer credit, all the debt you are seeing on people's credit cards, they are no longer hopping out of their debit accounts, bank accounts, and paying down mortgages or car loans. they are charging into their credit cards. at the same time retail sales are going up. this is not the big deal to be concerned about because this is how it works pre-stimulus so you are getting back to normal, as mike mckee would call it getting back to old habits. this is something to keep our eye on, supported by the levered section. i want to get a market check because you are starting to see the market roll over a little bit. in the positive direction. dow jones up flat come up .1% rounding up, the s&p 500 under pressure down .5%.

the nasdaq taking it on the chain, down 1%. the 10 year yield, 371, only a five basis point move. stick with us, more market coverage ahead. my cohost joins me in moments from toronto. this is bloomberg. ♪

>> welcome to bloomberg markets. >> i am kriti gupta. maybe we got a little too comfortable. it is not sticking. the s&p 500 down .6%. the nasdaq forward on that where you are seeing underperformance down about 1% on the tech heavy index. what is interesting is what is going on in the bond market. the inversion is getting worse and worse. you are seeing an inversion of 65 basis points.

it has only hit about 50 so not a great sign if you use that as your signal for a recession. brent crude also pulling back a little bit, trading with a 90 to handle, down 1.5%. jon: the weakest in energy and technology stocks. as for some individual movers, corporate actions can influence stocks in different ways. discover financial has been an outperformer today on buyback plans. carnival shares are off 13% on a private sale of convertible debt now as we talk about the earnings landscape and the technology story as we get ready for more players to report such as zoom. you have one analyst at citi who is raising some concerns. as for some numbers that we have actually got today, not just the today story but the outlook story, really weighing on advance auto parts, the stock off almost 70%. kriti: mixed results among the

market. sales numbers indicate the consumer still spending. is the fed passion and is -- fed's -- >> there are significant lags to that policy, as long as 12 to 18 months, so we will not see the full effect of this tightening probably until the midpoint of next year so this past quarter was really the first time that we saw inklings of the fed's tightening have an impact on earnings. target most problem lately -- prominently coming out with a dreadful report so we will continue to see that. jon: let's get more on today's market moves. jess kind enough to join us. given the lag in interest-rate policy, it does feel that the markets spent some time today

trying to figure out what the health of the consumer actually is, whether we look at the surface level comments on retail sales or we have to look beyond that. jess: exactly. when you are looking at retail sales numbers, they are coming in at the highest increase in basically eight months last month but when you are looking below that, a lot of the spending was more geared towards route 3's and restaurants -- groceries and restaurants. looking at the weakness when it came to department store sales, we will begin to get earnings results from department stores starting from tomorrow including macy's and nordstrom next week. when it comes to the question are two of the federal reserve and the course as far as what will happen with interest rate policy, whether or not it will step back from jumbo rate increases and instead do 50 basis points at its december meeting next month, really when you are looking at these retail sales numbers plumbing instrument than expected, it could still signal that they could pay her back those increases -- pare back those

increases. the terminal rate could be 5% or higher. kriti: put the federal reserve to the site for one second, which i know nobody does, but stick with me. the consumer is at the end of the day still spending. as long as they are spending, the stock market should be rallying. today's pullback i want to say is a little bit of a softer one then we have seen in past sessions. do we think the bull case is still intact? jess: i think there is in the short-term pd look at the ratio, this is equal rate. -- the short term. look at the ratio, this is equal rate. it has been turning higher. investors and traders think when it comes to the federal reserve, falling back on rate increases, once yields somehow stabilize, that could be a boon for discretionary stocks, so they are looking to buy those for the next six to nine months.

that does create table case when you are talking about discretionary. there are so many industries within discretionary, not just retail but homebuilders, auto, casino stocks that have done well in the last few weeks. i thought that was something really interesting when i have been talking to traders. we are hearing weaker than expected results from target but also looking at walmart, a bigger grocery store component in the staples category so still not exactly all these retailers created equal right now. kriti: the second half of next year, remember when they said that about 2022? while. jess menton, thank you as always for your analysis. joining us now, michelle meyer at mastercard economics institute. thank you for joining us. one thing that really stuck out to me, we talked about this on the bloomberg tv for our u.s. audience is simply the idea that retail sales spending is rising and was rising in tandem with consumer credit. how much of this idea of

spending while being more and more leveraged is a problem? michelle: the way i think about the consumer right now when it comes to purchasing power is three main sources. there's income creation. we know the labor market is still strong. we are seeing healthy job creation. if you look at the atlanta fed measures, in excess of 6% over a year-over-year basis. there is a source of purchasing power coming from the income side. that is one. two would be pandemic savings which are still being utilized, still being drawn down, still a source of support for spending. and the third one would be credit, debit, debt. consumers building up revolving credit. to me, it is the story of all of this. the consumer is spending because they are still being supported in terms of their purchasing power even if it is starting to switch in terms of how they are able to kind of lean on each of those resources. jon: and michelle, we were just

talking about where we are as fed policy starts to further influence the economy and i guess the jobs market. we talk a lot about where the interest rate moves are going to come from but what about where you are anticipating the job market to be as we move into 2023? michelle: we have seen the last few reports, some moderation in the pace of job creation, but still out there with net job growth. i think you are starting to hear some more rumblings of a bit more caution when it comes to job creation. some sectors seeing outright job loss. but to me, i think it's going to be a story of a slowdown in jobs growth rather than a story of acute change to the labor market. it's more this adjustment as we see the economy continue on its path towards rebalancing, and that is what is evident in the data of late. there's still a lot of job openings out there. kriti: well, speaking of a lot

of the job openings, some of the pain we are seeing in the tech space is coming in tandem of this holiday season for it on the one hand, you have this big anticipation of a lot of spending. on the other hand, you have a real loss of income for a major sector in america. how do you square those two? do you see the layoff spread into the retail sector? michelle: it will be a function of what we see for overall consumer spending in the broader economy. depending on how the consumer continues to spend, how much the fed has to continue increased interest rates in order to achieve their goal of price stability, i do think, and this is really important, that the economy next year is going to feel very different depending on how you participate in the economy, so we are already seeing that play out. look at the housing market. the housing market has weakened substantially. the sectors are going to feel that spillover.

if you are in a experienced economy, lodging, restaurants, it's going to feel like a strong economy and it is feeling like that right now so to me, it is more a story of how consumer spending tends to adjust in this changing economy. jon: michelle, in terms of where and how they are spending those consumers -- highlighting the challenges we have seen in the tech sector and that is reflected in the stock market. on the e-commerce site, what do we know about the trends right now? michelle: e-commerce has been strong and is similar to what we have seen in our data which is that e-commerce is still a really healthy trend here. if you look at data, spending on e-commerce over the last three years is almost up 100% so it has been a huge support coming out of the pandemic and it still is out there in terms of a big, strong trend for consumers now.

that doesn't mean you will not see recovery in store. particularly when it comes to this idea of experience based spending or promotion so it will be really interesting to see what happens where people might be much more inclined to go out and experience. kriti: something we will keep an eye on. michelle meyer, thank you as always. coming up, we will get more insight on the state of retail. this time from david silverman at fitch ratings. he will give us his take. this is bloomberg. ♪

kriti: this is "bloomberg markets." i am kriti gupta alongside jon erlichman.

let's talk about the health of the consumer. retail sales rising by the most in eight months in october but also diminished hope for a fed step down on rate policy. joining us now is dvid silverman, senior director of corporate's at fitch ratings. we will not ask you to opine on the federal reserve, don't worry. we will ask you about the retail sector specifically. you're getting two different messages from target and walmart. walmart outperforms and recessionary periods so the numbers that we saw on walmart, home depot, lowe's, t.j. maxx as t safe to say that the retail sector, the consumer is still in good hands? >> thanks for having me today. what we are seeing as evidenced by the retail figures is that the consumer is still relatively healthy although that health could be moderating a little bit. the consumer is continuing to spend but what we have seen as a continuation of what we have

seen all year is that how the consumer is spending is shifting a bit. we saw significant growth over the last two years, particularly in some discretionary categories like home furnishings and others as consumers were saving money from not spending on travel and entertainment. to some extent, we are seeing a bit of the reverse of that. that pandemic feels mostly over. the consumer is going back out to travel to concerts, to sporting events, and we are seeing some moderation to some of these discretionary categories. target be more exposed to some of those categories then walmart which explains a fair bit of the differential in performance we have gotten from them in the last 24 hours. jon: we are certainly seeing that play out in the equity market with target shares today. one common theme we are seeing these days amongst all investors is something you focus a lot on, things like free cash flow. on the conference call today,

the target ceo talked about the company venerating robust free cash flow but when you are analyzing these businesses right now, what are you keying in on? david: sure. we are looking at the overall impact of those operations on cash flow and what we are looking at is the innate health of that company kind of entering a period of challenge. in one of the things that keeps target -- it has significant liquidity and financial flexibility. in order to manage through a difficult period, whether it is a difficult period because of the consumer or one of its own making through some execution challenges this year. so while earnings and even topline could be volatile, continue to be volatile over the next six months, one year, the

company is in pretty strong shape when it comes to their ability to manage through this environment or even if the environment gets worse from here. kriti: david, a phrase i am hearing a lot is the concept of share shift, that people are spending their money towards things like cheaper groceries as opposed to teens shopping at urban outfitters for example. to what extent is that really going to last into 2023? will we see some sort of mean reversion in some of those spending trends? david: there are a couple different share shifts we are looking at. as we think about what the impact of inflation is to consumers, we are looking at things like share shifts within the grocery store. consumers shifting spend towards poultry away from needs, from private bands and away -- brands and away from national brands. that could continue over the next year or so as the consumer feels ongoing inflation and is

making some choices around that. in terms of share shift between goods and services, we continue -- we think we will continue to see what we have been seeing which is shifts towards services and away from goods. the one thing we have to remember with these discretionary categories is retail sales in 2021 were up 20% versus 2019 levels and even looking at target today, to the extent that their results were disappointing, there topline is 30% plus higher than it was prior to the pandemic so to some extent, the share shifts we are seeing, to your question, is almost a mean reversion of the very unique kind of fundamentals and environment we have been in over the last couple of years. jon: helpful context. david, thanks a lot. david silverman, senior director of corporate's at fitch ratings on the retail story right now. coming up, a significant move

for seaport transportation in canada. we will speak to canada's minister of transport, next. this is bloomberg. ♪

jon: this is "bloomberg markets ." time now for today's for what it's worth. that is the amount of a new investment canada is making in british columbia as port-au-prince. the new part of an ongoing effort by the federal government to ease supply chain bottlenecks. joining us with more on the announcement is canada's transport minister, omar. thanks very much for being with us. in many ways, it feels like this announcement is tied to two significant bc ports because many people familiar with the supply militant have been a lot of bottlenecks in the port of -- with the supply know there have

been a lot of bottlenecks in the port. omar: supply chain disruptions over the last couple of years have had an impact on cost of living, on prices of goods, but also on availability of goods, and our government has been acting to ease the pressure that we are seeing on supply chains to address these issues. we established a task force that last month released a report for love meaningful recommendations and one of those recommendations is ensuring that we help ease the congestion our ports are facing. two of the most important ports that we have in canada are on our west coast. the port of vancouver and the port of -- as you said. today, i announced the federal government is investing close to $75 million as part of $160 million investment to expand the

port to allow for more handling of goods and products for imports and exports. jon: we will watch for this expansion and see how it plays out. something else i wanted to get your perspective on. the head of one of the larger companies in this country was critical on communication and visibility within supply chains. the concern over having sometimes some of their rail operations stall for many hours without getting an update on why or how that all came about so as part of your continued investment, are you also going to make a bigger push for better committee case and within the supply chain? omar: again, this was one of the recommendations that the task force has had and i think it's one of the most important short-term objectives we need to work on which is investment in ensuring that information is shared in real time across different modes of transportation. a couple weeks ago, i announced the creation of $136 million

from the government to help private companies and stakeholders in the sector to digitize much of the information that they have and enable it to be shared across modes of transportation, so this will help rail companies communicate with ports, trunking -- trucking companies. it is the way of the future. jon: i am glad you mentioned truckers as well because in the nation's capital right now, there continues to be a dialogue around the challenges in having enough labor to move products throughout the country. what is the next step on that front? omar: labor shortage is yet another reality of current supply chains. we are facing chronic shortages across the entire sector. myself, minister of employment, minister of labour, have been

talking about putting together a broader strategy. the good news is that this recent fall economics statement included within it investments in apprenticeship and in training for our workers. there is more to be done. i have been in constant communication with trucking associations, with other organizations in the transportation sector to figure out what else can we do to increase the supply of workers? immigration is another answer to this issue. recruiting from our indigenous communities is another answer to this. we are working on many fronts to address this issue. jon: before we go, just going back to the investment today, as we continue to build out and expand, how much additional capacity and what is the timeline on that. omar: my understanding is that shovels will hit the ground in

very short order. all the permits and pre-work that is needed has already been done so i am excited about how quickly this work is going to begin and i look forward to being there when it's reopened. i am hoping it gets done in short order and we see the impact and feel the impact as soon as possible on the supply chain. jon: minister, thank you minister omar alghabra, for transport for canada. he talked a lot about retail this half-hour. year ago, there were so many concerns on this front end that will be something we will continue to watch but less of an issue amongst retailers as we head into the holiday season. kriti: the timeline question was really crucial because we are talking about supply chain issues that do affect not just situations around the globe but near shoring which makes canada and the united states even closer trading partners.

for now, the markets are still in the red. you are looking at s&p 500, and yields lower as well. you are of course seeing the bloomberg dollar index rollover. stick with us. more markets coverage ahead. for jon erlichman, i am kriti gupta. this is bloomberg. ♪ as a business owner,

your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

>> now keeping you up-to-date with news from around the world. here is the first word. i am mark crumpton. u.s. officials say they have not seen evidence that contradicts the preliminary assessment that a ukrainian air defense missile was behind the strike on a village near the country's border. still, a white house emphasized that russia was ultimately to blame. the european central bank warns that record inflation spells trouble for everyone from households to governments. the ecb said it's assessment is that risks to financial stability have inc