>> read on the screens, stocks continue the decline in a rare december loss. i am alex, this is "bloomberg markets." >> here we go. checking in on the markets. s&p down 2.5%. below 3800 for the s&p, have to wonder what kind of stops have been triggered, what kind of options trading this sets off. the question is why, the nasdaq 100 provides some clarity being hit by 3.5%, all of this is a micron story.

the question is if it is a micro or macro signal, or is it is not taking a lot of risk into the holiday trading week. you do not want to be long lots of positions. if you want to go to safety we are seeing moves into the treasury market, we do not see that safe haven bid. and ask a question if the growth in the third quarter was better than we thought, consumer spending is better than thought, the fed will have to do more. we will debate that the next hour. let's get to the micron story, they will cut headcount by 10% in the coming year. projecting a wider expected -- then expected loss. tom joins me in san francisco. what is the macro signal from micron? guest: this is about a demand problem. this is about a fact that we are in a very economically unsteady time right now. demand for smartphones and laptop computers, that we saw

surging during the pandemic is falling off. the concern is that this goes beyond something cyclical. this is about a fundamental change in the market for the chips micron makes. >> why isn't it just cyclical? as far as a change from the pandemic hangover, we bought a ton of stuff like phones, tv's, computers, this is a cyclical engine -- industry. why is net that story? guest: during the pandemic there is a huge demand, like you said you needed memory chip to go into those. that really benefited micron. right now we have a confluence of things. the war in ukraine, inflation, economic downturn. is not just about that. this is about, fundamentally, if you will get back to a place where we are buying as many smart phones or laptops as we did during the pandemic. the consensus is, we are not at

a place where we will go back to those levels. we are not a place -- we are in a place where that is plateauing. micron will need to look at other areas like ai automotive. can they fully replace demand for laptops and smartphones? the answer is probably not for a long time. >> to that point, we take micron specifically what does that transition look like for them? how does that delay profitability? guest: for sure. next year will be a rough one. what micron said yesterday as they expect the over supply to peak around this current quarter. some analysts say the oversupply will last through 2023. some analysts say sometime in the love 2 -- middle of 2023.

generally speaking will not work through the glut of supply until sometime in 2023. alix: that will be a pivotal moment. whenever macro read we have from macron -- micron will also be telling. does the economy trough before micron or does it lead any trough in the economy? >> it depends on where the economy goes in 2023. when do you see inflation peeking, interest rates topping out, seeing and user demand coming back into the market? it will not be until we see that that micron starts to contend with these issues and get back on firmer footing. alix: my last question, have we re-rated enough in the semi space to account for this? i have been told no. how much more do we have to rewrite? -- re-rate?

guest: analysts are somewhat pessimistic. i do not think we have seen the worst of it. the sense is heading into 2023 things will get rougher than -- before it gets better. alix: that seems to be the consensus, happy holidays for you as well. sam bankman-fried has arrived at the new york court for the ftx fraud arraignment. yesterday he was extradited from the bahamas to new york. he has now arrived in a new york courthouse for the ftx fraud arraignment. we will get more details on that and just a moment. we will get to the broader eco-market. let's go to the macro, kathy is a nationwide chief economist. we will take you through the numbers we received this morning. do you look at something like micron as a macro factor? if we do not by angst like

computers, phones, tv's does that tell using about the broader economy? guest: happy to be with you. it certainly can. that does seem to be, their stock performance and announcement does seem to be interleaved with this very unusual macro backdrop we have post-covid recession. some demand was extremely elevated. supply was extremely constrained. that was a resulting inflation that we had. niceta the unwind. not -- now you see the unwind. not just with microchips, it is with cars. it is not uniform. alix: that is what is complicated, then you get the data today and that is what makes it confusing. you have the third quarter gdp revised up. that does not happen, it is usually a snoozer, consumption

is strong, was your take away from the numbers? guest: you are right, gdp third revision is the third tier at least at best. initial jobless claims take on more importance because the labor market, but weekly jobs claims is nothing in torment -- employment figure that we look at. we have a market that is very eager, hoping that the federal reserve will pause, eventually even cut rates at the sometime in the second half of next year. we see data points that suggest maybe not. chairman powell might be correct suggesting that we see rates above 5% holding their throughout 23. the only data report that goes against that is the leading economic indicator. is down 1%. down many months in a row. that suggest that while things are good now they will not stay that way as we go into 2023.

alix: sounds like the timing is important. the consensus i read is that the first half will be bad and he gets a little better in the second half. it increasingly feels like one of the biggest risks that the recession and the trough is pushed out. that will prolong the whole situation for the fed. what do you think? guest: that is essentially the base case right now. because there is so much momentum currently in the labor market, with the consumer, it takes time for the increase in interest rates to bite, we do not see the recession beginning until the middle part of next year. that means not great growth for the first half of the year, but not recessionary. that does push things back. for the equity market will typically start to price in the downturn for happens and trough in the recession. it could be the second half of the year is good for the equity market, just not the economy. alix: what is he probably that

the savings of that -- of the savings that we accrued and the strength of the customer pushed back the session? -- recession? guest: it is a risk, the consumer a stronger and more resilient than we thought. we met about the savings a given the decline of the savings rate, unless the labor market surprises us, it looks like we are getting to the end of using excess savings. it does depend on the labor market. even if you have excess savings, and you are fearful, with a two adult household, what is fearful of losing their job will not spend the excess savings. alix: that brings us to the point of what kind of recession we are looking at. everyone says it is not that bad. do you have -- can you have a recession or the jobless rate have to rise quickly and it cannot be that bad? guest: it is tricky.

we are all trying to thread the needle. we see a moderate recession. it will not be painless. we see the unemployment rate going above 5.5%. is not a severe recession because corporate and household balance sheets are in good shape. looking at the job openings number without seeing the unpleasant rate we see it is very difficult to find tune. it is possible. again you have to be humble. maybe the federal reserve does pull this off. we hope so, we generally hope that happens. i think it is a tough challenge. alix: what is your base case versus your worst-case scenario? if the base case is a 5% terminal rate for a while, what is the high-end of your forecast? guest: we do see the unemployment rate getting above 5.5%.

a two percentage point increase. that is consistent with a more moderate peak to trough gdp decline of 1.5%. typically post world war ii, exclude covid and the great financial crisis recessions the decline is an average of two percentage points to put that in perspective. on the upside we talk about the soft landing may be possible. on the downside may inflation is more persistent. the fed has to raise rates higher in stay there for longer, or there is a shock that is hard to forecast. at this point it really does come down to inflation and the labor market. the intersection of the two of those. alix: to that point tomorrow, dated up all over the place, what is the thing to pay attention to? guest: we do have a lot of data tomorrow. i will say this. inflation is the key at the end of the day. weapon with pce prices, headline, core, we have some

sense of that from the cpi data. if i could add one other thing to look at it would be spending. i think dispute -- consumer spending q4 will be quite strong. close to what we saw revised in q3. it is strength in retail sales and spending in october, november slowed in may be that slowing of momentum we saw in the economy. alix: for me it is how we spend our money next six months, thank you. kathy, nationwide, chief economist thank you for joining us. time for bloomberg's first word news with mark crumpton. mike: the kremlin -- criticize the outcome of cranial president zelenskyy's visit to washington. saying they would continue to target web injury. -- weaponry.

they saw no sign of a willingness to listen to russia's concerns. meantime troops have hit 1300 critically important targets in the almost 10 month conflict. new jersey governor phil murphy signed as elation apply -- requiring concealed carry gun holders to buy liability insurance. the move will bar them from bringing firearms too many public and private places. the law will face legal challenges as they are some of the nation's toughest. in afghanistan, over a dozen male university teachers have resigned in support for education for female students. this comes after the taliban put a ban on women's higher education. one kabul university professor called the ban unjust and immoral. the decision to bar women from university has sparked outrage

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alix: this is "bloomberg markets ." markets are moving so fast and furious i think it is worth another market check. the nasdaq 100 dropping 4%, the most intraday since october 7. the internals it is about the chips. nvidia, applied materials, advanced micro devices, all the worst performers in the s&p. carnival down 10% reverse in upside yesterday after the ok quarter although the outlook looked cloudy. tesla is down 10% as well. do not want to leave that one out. i want to report that working below some of these key levels is some of -- is quite important. jp morgan has a hedged equity fund. there is a huge call option with a strike price that we blew through. the idea is that a 1% move in

the s&p would prompt option dealers to buy or sell stocks to the tune of $2 billion. she says it could increase to $4 billion next week. the upside moves and the downside likely see today will have a lot more impact as we go. nevertheless we typically see higher equities as we head into the holiday trading week. they call it the santa claus rally. it does not seem like we will get that now. the differences you did not want to take on a lot of risk, but you do not want to sit on crack -- cash. you have news trickling through like micron for example. still ahead, the lifeand legacy of guggenheim's investment chief, on his trumpet -- tragic with -- death on wednesday. this is bloomberg. ♪

alix: this is "bloomberg markets ." guggenheim partners chief investment officer scott, regarded as one of the bond kings of the 21st century has died at age 63. she joins me to discuss his legacy. what happened? what do we know? guest: he died while working out at his home at rancho santa fe, yesterday afternoon. this was extraordinarily sudden. this was a shock to the 900 employees at the investment management division. they were informed today during a memo to staff. scott was a personality who was not only the public face of guggenheim, but one of the original take bond investors. something he always used to tell me, is to never hire an optimistic bond and manager --

fund manager. you saw the play out in his calls. sometimes he is wrong. during covid he thought the s&p would fall to 1200. he was off by a thousand points. the since i was got from scott, was that he would rather make both calls, -- bold calls, protected downsides and be wrong sometimes. figuring out where being a contrarian would be the biggest payoff. alix: what does this mean for guggenheim? guest: the people in charge of the two copresidents of the firm, as well as and who worked very closely next -- anne who were closely next to scott with fixed income where there is the bulk of the money. i've spent a lot of time with her, she was often side-by-side with scott. that is the future of guggenheim, and the nearest

possible term. it is a huge loss for somebody who really came out of early retirement to help build guggenheim in the late 1990's into a $280 billion investment giant. alix: we appreciate the perspective, thank you so much, condolence of family and my friends, and loved ones of scott. latest in the ftx saga, two of the cofounders of sam bateman freeze associates plead guilty and -- sam bankman-fried associates pled guilty and are cooperating. that is bad news for him. how many more individuals to we expect to flip on sam bankman-fried? guest: we do not know exactly. there are several people we are waiting to hear from. one is ryan, the top executive at the bohemian branch of ftx. he reportedly sent some text messages to bohemian authorities days before the ftx collapse

about how money was being used. seeing the two top people deciding to flip, indicating that the next tier of executive down could follow their lead. alix: within the filing there is lots of talk of knowingly and unknowingly with sam bankman-fried. he turned a blind eye of what is happening or he was a part of it. do we have a sense of however extend what the repercussions are? guest: neither are good, he was ceo of ftx and had a ownership stake in alameda research as well. the case prosecutors are trying to make, even if he did not know and says he was unaware, he should have known. this could be very difficult for him. particularly if you have other top executives saying he did know, authorized or deputized someone to do this. this is very bad. alix: we are looking a lot shot of the courthouses in downtown new york were sam bankman-fried

recently arrived after being extradited from the bahamas. do we know what it will look like for him? guest: he has a bunch of different fronts. criminal charges from the doj, the sec charged -- charges, the cftc charges, this could be a complicated and lengthy process. it did get sped up a little bit earlier this week when he decided to not contest the expedition charges and move that ahead. we could see, especially if more people flip on him that he decides to cooperate more. the prosecutors have been clear. it is better to cooperate now. if they have to come after you later it will not be such a good deal. alix: in terms of a defense, do we know everything about what a defense might be? is a defense just to public appearances he has made the last couple of weeks? guest: we are seen changing legal strategies from him. his lawyers switched over couple of weeks ago.

we saw the earlier days after the ftx claps he was speaking to everyone and on an apology to work. that clamped down earlier this month when there was a change in lawyers. they said you need to quiet what you are speaking to the media. just the same, the lawyers are the same that defended ghislaine maxwell, very. high-profile criminal cases. he has more robust legal representation than before. you can see he is not being advised by the pros and he is a lot more cautious. alix: we appreciate it, bloomberg's laura davidson reporting there. we will speaking to her, about what 2023 might bring to the global rates. are get. we have to talk about the selloff. we are seeing the nasdaq with one of the worst days since october 7, most down for percent.

a gloomy outlook for micron. we cannot forget about carmax with good economic data, should we be pricing something different from the bed? -- fed? this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings

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>> i'm sean oliver, welcome the bloomberg markets. >> let's get a quick check on the markets. it's a brutal day unfolding. the s&p is down. 90% of stocks on the s&p are negative territory. a large part of that is happening in the tech sector. the stocks of the semi index of the nasdaq 100, they are down by 106%. you could make an argument that it will not take a lot to whip the market. investors are not going to take on that risk into the holiday trading week. but if you want to go for safe haven ways, you you can go to the dollar treasury market.

they are just not seeing that. yields are up, and part of that is the positive data we've seen. good news and bad news -- i'm tired of this. hopefully next year we can say something different, but next year we brutal. >> when we look at some of the individual semiconductor stocks, we are showing stocks that are reminding us of larger week this is we are seeing in the sector today. obviously, down words, with names like nvidia, and amd, etc., investors are getting a sobering message from carmax, which is really struggling after the pandemic with used cars, with how stretch the consumers now feeling, and a very interesting story around conviction. you've got a company like carnival that had a well-received result yesterday, but very quickly, they were selling off by comparison. investors feel a little bit more confident with fedex on the

second day of buying, but it is hard to find those stocks at this hour. >> breaking news concerning sam bankman-fried. he is at the courthouse. at 250 million dollars bail bond for sam bankman-fried. he would also live in california with his parents. under a proposed bail. we will keep you updated on headlines as they cross. as we know, we are looking at $250 million bail, and he would live in california with his parents. >> let's move to one of the big topics of the day. that is china. they are playing to make cuts to the quarantine rules for overseas visitors as they continued to pick apart strict covid zero policies in an effort to revitalize the economy. earlier, i spoke to louise where about air infinity and the concerns she anticipates in the new year. >> we are forecasting 1.5 million cases a day in china. about 5000 deaths. china is such a large country, and we are expecting this to

occur in different provinces at different times. we are expecting the first peak around mid-january. then a second peak around march. in order to put in context, we are only seeing one to 1.5 million cases read that could reach up to 4 million of those speaks. >> let's get perspective from duncan. he is a cheap chinese economy. knowing where the chinese economy goes, is pivotal for making any call in the market. what is your anticipation of how the growth evolves? >> as your last guest mention, the current challenge are these huge covid waves. might best guess is that there is progress in getting through those in the next few months. so, by q2, china can really focus on the top policy objective, which is supporting growth. especially with demand consumption and private investment, and the property sector.

i think the outcome will be that china gets closer to a 5% growth coverage next year. more than it does this year with conservatively shorter. >> when we talk about the slowing global economy outside of the china story, are we set up for a situation where china them lays an outside role in terms of its influence on the global growth story in 2023? >> i think that is true. i wouldn't go with a distinction. it won't be the same stimulus on the global financial crisis, where china just drove commodities, but i think we will see a step up in terms of support. we will see. likely interest rate cuts to spur private sector credit demand in q2, and i think that will spur consumption. chinese households have built savings, compared with previous trends in excess of 4 trillion

dollars worth of excess savings over the last few years, and that will not be spent all at once, but it does give an idea of the potential power that the consumers have. i wonder if that is a good or bad thing for the economy because on one hand, we see this revenge spending in the west, but that will be a huge demand pull which is good for producers, but it is also big on inflation at the same time. it will raise prices and hurt central banks who are tamping down prices, in which way is it going to go. >> i don't think it will be as strong as in the west. the big distinction is labor market. you have youth unemployment in china did it is close to 20%. it is a huge social capital. china didn't have a massive transfer of money to consumers that it did in america. that really stirred the revenge spending coming out of the pandemic. i think in china's case, there will be some of that. it won't be nearly as strong. i would not see china as grading

inflationary principles. i see the opposite. if you look at where growth is coming from now in china, the stimulus, a lot of it is going to manufacturing investment capacity, so the result of that is going to be the next few years, very likely they will exercise disinflation with manufacture products to the rest of the world. i think that will be more influential with china in terms of global inflation. >> let me build on alex's question. there are a lot of people who are relatively upbeat on the commodity story or the energy story. even though that is a lot of doom and gloom in the air right now, because of the china factor, how much potential upside is there in actuality tied to the commodity complex based on the reopening a some what you're saying? >> i think it will be primarily a commodity. right now, china is leaning on

infrastructure investment, filming with infrastructure. that is one of the main two pillars of construction which demands a lot of commodity demands and building materials. the other big pillar which is currently week, the way i see things going at cheer, is they will expect to recover, but it will be a long and drawnout recovery. it won't be the same thing we saw 10 years ago. meanwhile, it will continue growing, but the government will try to rein in a bit of that because of tech. we will see not quite the same boom we saw 10 years ago. not quite in those terms. >> just to narrow it in a little bit. and this is mike commodity nerd talk here, but in terms of demand, if china opens, what kind of pull they have? that will have dire consequences for europe had a lot of lng's are going there, and they are replacing their stock, but if this is from china, this will

replace the inflationary story in your. what kind of risks do you see? >> i don't see it as a very high risk. dina is already getting a certain amount of gas through the pipelines in russia. it does get lng on the terminals of the coast. but if you look at the energy structure in china, it is certainly part of northern china that really relies on heating, gas, heating, and most of the rest of china's energy supply is still cold rid with renewables like solar and wind and hydro playing an increasing role, and gas was promoted in order for clean power during the heating season. so, i don't think china will be leading in terms of gas demand. not so much as the recovery compared to some other countries. >> good to get your perspective. thank you for joining us. nice to have you back.

cheap china economist at pantheon macroeconomics. staying with the global picture, central banks are continuing -- to deliver hawkish message. what to expect from the fed, coming into the new year. joining us for perspective is the head of global rate strategies at tde. we were talking about a complication of the china story in the face of this other challenge for the global economy right now. sticky inflation. what is your expectation heading into next year? >> in the u.s., i think inflation is going to be sticky on the way down. i think what we've seen is essentially good inflation coming down, but for inflation to come down, we really need the labor market to ease up, and that is very tight, and we have set 5% pretty north of where we should be to get that 2% target, sare view is that inflation is likely to come down because of these effects, with food and energy, and commodity prices. but that, the sticky component

of service inflation is going to prevent it from getting much lower than 4%, so next year, it's about three to 4% inflation through the year. that will make it very hard for the fed to even start hiking, so we think the fed will be hiking all the way up until may to reach 5.5%. and then, reluctantly, with policy, we will have a recession and the base case, but we think the fed will be late in terms of when they can start to ease because of that sticky inflation point. ask absolutely. hang on one second. we have breaking news. it's official. stan bankman-fried's bail font is approved by a judge in new york. $250 million. prosecutors were looking to see if he could live in california with his parents. we don't have news on that, but we will bring that to you as a crosses. it does look like he will be restricted to home confinement. back to you for a moment. take a look at the reaction of the bond market. are you taking any of the seriously? feeling way i read is that the

front end is moving a little bit because of the data. it is good data news that is bad for the market, and in my reading that writers are some the also going on? >> i would say the market in the last month has become really pessimistic about recession fears. the 10 year was over four and a quarter. that was just a month ago. here we are, 360, 350, 340. two weeks ago it i think it was an idea growth slowdown. this data, as well as other data we've had, is suggesting that the consumers very strong, so i think that tells you the fed may have to keep hiking. they will slow down the pace, and it is clear -- unclear whether they will go another 50 or 25, but today's data is telling us that the consumer has a lot more strength than the market was pricing in. those rates are moving higher. it is lightening the curve because the market has realized that the consumers will run out of steam at some point. when the savings they've had since covid, when that runs out,

which we think happens by the middle of next year, that is when consumer spending slows down, and login rates are where they are, but the front and has to fright -- price and the fed, the data is not telling the fed to stop hiking. >> to your point about the 10 year, which in november, which is north of 4%, we were showing a recent performance, have you set any expectations on where you see that in the back half of 2023? >> that will come down to the labor market, we are looking for the on employment rate to rise pretty sharply in the getting up next year. businesses are holding labor right now, but the second half of next year, we are going to start getting closer to the on employment rate. we see inflation getting back down to 3%, so with that as a backdrop, we think the curve is going to invert more. we have the 10 year at 285 by the end of next year. that is a recession very much in this wealth -- terrible for risk assets because they are holding back any support. but the market is going to

pricing longer than the fed rates to provides of -- support. it will have to cut a long way in 24. as much as i think the tenure should be 370 544, i think the rates are rallying a lot by the end of next year because then we are going to be in a recession in the u.s., and global rates will also struggle because europe might be in a recession at that point as well. >> in that case, what happens to the two-year? >> i think that is for the two-year to rally, i keep hearing from investors, what you put on that measure? you should want to go along the front end. for the two-year to rally, we really need the fed to say we are ok with the level of inflation. we only get that by the end of the year. we have a two-year falling. but really, in december, may be and 24, it really depends on sticky inflation. but for most of the year, it will be futile to be along the front end because you are

fighting the fed there. you can see it is safer on the long end because it is about your longer-term view on the economy as opposed to when the fed starts to signal they are going to ease. they are so top -- traumatize. i think they are going to want to be clear that inflation expectations have downshifted. we just have to upshift before they can do something that will signal to contribute. >> we really appreciate that. those are some fun calls. it's been too long. it was good to see you created joining us on tv securities. coming up, more breaking news on sandbank and freed and his 250 million dollars bail bond approved by a judge in new york. it looks like he will be restricted to home confinement. we will have more coming up, after this. this is bloomberg. nothing is more important than family. a family you're born into, a family you choose

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>> this is bloomberg markets. i'm with jon erlichman. the $250 million bail bond has hannah miller with more. what we know so far? >> this is justin. the judge has said that sam bankman-fried can post the bond. he lives in his parents home in california. >> this is a big deal for freed. the possibility of getting bail, that was a huge reason for him to waive his right to fight extradition into the united states. >>'s parents quest -- his parents stayed in the courtroom, and there was equity to satisfy part of the bail conditions. bankman-fried previously claimed he was down $200,000. the judge seems to have implied

that from the courts, sam bankman-fried presents no danger for future financial crimes, as he is awaiting more details on the actual trial itself. what more do we know about how this process might play out? >> he will be able to travel home, be there for some degree of comfort, and that is input up. he will be considered under house arrest. he will have to wear an electronic monitoring bracelet. he will get that bracelet before leaving the courthouse in manhattan. this is a very different -- from the life of luxury he had in the bahamas, so i think he is probably a bit relieved to be back on stateside given the condition he was in imprison. >> do we have a sense of how we may plead? >> yes. it will be interesting to see if

you will make the deal. his former coworkers did. the ceo, caroline olson, and former ftx ceo barry wang, they both pled guilty. they are working with authorities. that might up the pressure on sam bankman-fried to take a similar deal and acknowledge wrongdoing. >> all right. thank you very much for that breaking news report. hannah miller covers the crypto market as we monitor headlines tied to sam bankman-fried. coming up, the latest on the brutal winter storm that is sweeping across much of the united states. how it is affecting every thing from holiday travel to commodity prices. more, next. this is bloomberg. >> how can these resources fuel are shared tomorrow? as communities and economies continue to grow, so does our energy demand. but our resources are not limitless. to address this challenge, we used best in class exploration

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>> this is bloomberg market. i'm jon erlichman with alix steel. we want to get back to this once in a decade winter storm that is nattering a huge swath of the united states. snow and frigid temperatures are making a mess of highways, canceling flights because of holiday travel. we are feeling the weather here in canada. let's get some more perspective from bloomberg weather reporter brian sullivan. it is good to have you with us. the president has weighed in on this, and he is warning travelers. maybe we'll start there with how the airlines are navigating through this nasty weather.

>> it's going to be tough. more than 2500 flights have been canceled for the next two days across the united states into canada. you know, this is hitting one of the major hubs. chicago. we have another storm developing on the east coast, that will bring mainly rain, but high winds are in new york and that is the second leg of the triad. third leg of the triad is atlanta, so you can knock off one or two. then you have major problems. >> what is the biggest threat? is it snow or the cold? >> it is the cold did the lowest temperature report in the united states today was -45 degrees in montana. those places are not going to get to that, but chicago will be minus six tonight. new york be -16. we will see a lot of chill here. >> we were just talking earlier this half-hour about the inflation challenges heading into next year.

i've got to wonder what this means for food prices? >> this is a big hit to the food prices. you could see cold weather that will hurt livestock herds all across united states. it's already doing a number on winter wheat crops in oklahoma and colorado and all the way down the planes, so you have those two things, and with the energy side, we will be short-lived, but it will still be a sharp bite. >> john thinks it is whatever. who cares create i live in canada. but i feel like it is key because in texas, for example, it will get cold. they are not used to that kind of cold. we had an issue last year where the grid could not handle it, and i am wondering if texas is prepared this time? >> they say they are prepared but they are looking at a record electric demand over the next 24 hours. it's going to be touch and go. the one thing they do have going this time around so won't be as

long as integrity of 2021. >>'s great perspective and a lot to continue watching. hopefully everyone stay safe out there. bloomberg's weather reporter brian sullivan. you're right that i'm used to it, but you never get really used to it. obviously it is challenging for anyone shot -- traveling right now. >> if it is -45, how do you leave your house? how do your kids go to school which mark i genuinely -- i was stung to someone in montana. they said life is normal. how is that possible? >> two words -- canada goose. a lot of people gearing up for the holiday season. we should probably get a quick check on the markets, as investors have been feeling jittery. that is partly the weather, but also, the story for stocks, and influencing these markets, which are on pace for basically eating into the gains we've seen over the last couple of days with the s&p 500 right now down almost 3%.

two point 8%, specifically. we were talking about continued challenges in the chip sector as well. for alix steel, i am jon erlichman. this is bloomberg.

>> hearest first word. i am mark crumpton. a once in a decade winter storm is battling the central united states with frigid temperatures. blinding snow and dangerous cold have gripped the region. the holiday travel season begins. the storm has even triggered warnings from the white house. president biden said in a briefing, this is not a slow day. when you're a kid, this is serious stuff. qatar farmed out hundreds of millions of dollars to prepare for the 2022 world cup. data suggest that and spent big as well. they spent 39% more on stadiums and they