>> stocks, bonds or taking a hit today. we are going to break it all down. bloomberg markets starts right now. let's dive into the price action. the are seeing red. the s&p 500 taking in on the chin, down by .8%. it is the bond market as well, it is selling off. yields are higher by about one basis point. the intraday volatility is during that fed blackout period. you're going to come back to the bond market.

with that move in bonds you are seeing the dollar gained strength against the loonie, against other currencies, a little weakness. we are going to dive into the bank of canada decision later. and brent crude trading with an 85 handle. we are also watching the news coming out of ukraine. the u.s. finally agreeing to increase some of their tanks they are giving to ukraine. that, perhaps, feeding into risk sentiment. right now, though, we are getting some breaking news. elon musk, exploring raising up to $3 billion to pay off that twitter debt. that is according to the wall street journal. now, twitter of course is not a publicly traded company, so we cannot give you the price action. it is worth bearing looking at tesla stock that inverse correlation is going to be crucial when it comes to how this actually impacts the bottom line for tesla shares. musk specifically discussing selling up to $3 billion in twitter shares, specifically.

that reporting coming to the wall street journal. we are going to dive into that throughout the later hours. let's go to one of the biggest stories that is hitting risk sentiment across wall street. the u.s. announcing it will send ukraine 31 of its m1 abrams battle tanks, adding to a german commitment to supply its own top-of-the-line equipment. ukraine's president said that the u.s. tanks keep ukraine on the "path to victory." was what president biden had to say just a short time ago. pres. biden: i been saying this for a long time. the expectation on the part of russia is we are going to break up. but we are thoroughly united. kriti: for more let's bring in annmarie hordern from the white house. walk us through what we have heard from president biden, just significance of this new stance from the u.s.. annmarie: it is quite significant. there has been back and forth between european leaders. the ukrainians have been asking

for these tanks. we just had an official that advises the defense ministry of ukraine join us last week on television. he was here in the united states for this exact reason, to talk about these abrams and when they would be showing up. what you have is another show of unity, as the president really likes to show that alongside the united states germany, alongside their allies in europe, will be sending all of these tanks. from the german side it is 14 leopards, but alongside their allies, about 100 or so, then the u.s. sending 31 abrams. there are still a lot of questions when it comes to the abrams. when will they actually be delivered? leopards coming from germany likely can go within the next three months, but there is a big question mark of when the battle tanks both get to ukraine. this was a warm welcome, and now the talks already and they asked already that they want more. now they are looking for things like fighter jets.

kriti: of course, something we are going to keep our eye on throughout these developments. this is seen as an increase when it comes to geopolitical risk, something that is being priced in. let's pivot a little bit and talk about the other story coming out of washington. lael brainard and the potential new role in biden's economic council. what does it mean? annmarie: she is certainly on the shortlist and seems to be the top contender that could take on the role of ryan dees. he is set to exit at some point. nobody is leaving before the state of a -- the state of the union, but she would potentially be this person that would be one of the strongest economic forces around the president. a lot of questions, because obviously she is number two at the fed. they would have to fill that seat, but this is someone who knows the west wing. she was a deputy director of that job at the national economic council in prior administrations under the obama

administration. also she worked at treasury. this is someone who really understands not just economic but also the politics, and right now she is one of those names. but still, interviews are ongoing. people like jean spurring, these other individuals being considered. kriti: a lot going on in washington, a lot going on across the atlantic. annmarie hordern, we thank you, as always. let's go back to the equity market. it is driving the markets to some extent. patrick palfrey joins us now. patrick, the story this morning 's geopolitics, but it is mostly tech. talk to us about what the microsoft earnings really mean to you in terms of a more broader, sustainable rebound for the equity market. patrick: so, i think when i look at tech earnings what i see is broad-based margin pressure. tech-plus, which includes the internet portion, like some of

the names in internet retail and internet services, are forecasted to see earnings declined around 20% in the current quarter. much of that is coming on the margin. what we have heard from company so far continue to indicate that is the case. margin pressures are out there. it is most acutely felt in that area. that is what investors are following closely. labor issues and staffing going on in a lot of these companies. kriti: how much of this was priced into the back half of 2022? if you finally see those macro headwinds catch up to what has been priced into the stock market, shouldn't the stock market rally right now? patrick: to be honest we have been in a bit of a rally. we are up almost 11% since the middle of october. we have rallied almost 4% so far you today. we have seen volatility come in to reflect some of those concerns. have seen interest rates decline , which has allowed multiples to

expand. the one thing not working for investors is the earnings backdrop. it remains difficult for this fourth quarter, then for the next couple of quarters it remains a negative growing environment. that is a comfortable environment for investors. to have negative eps growth but still get pea expansion because the environment has come in. -- te expansion, because the environment has come in. kriti: will investors be attracted to the equity market at a time when the consensus is shifting to europe, to emerging markets? what incentive is there to hop into u.s. equities? patrick: a lot of the options you named are great options. i think emerging markets, developed markets, you have to go where the growth is. if you think about the opening story, we were the first to reopen. it was followed by europe, and it is now followed by asia. the extent that you can get real -- close to that reopening story you are going to be belly --

better off. that is why developed markets -- developing markets look good here. there is a big difference that is happening, and in a lot of ways investors are taking the opportunity to look at options outside the u.s., and i think they should. kriti: the core of that thesis really comes from a weakening dollar, and that expectations that are stalled out. i have to ask, where is the equity market taking its cue from here if we get a sustainable tech rebound? patrick: i think the way tech goes, the market goes with it. it is such a big part of the performance for stocks. right now the conversation is, what happens with inflation, and how does the fed respond in the next couple of months? i think everyone can understand we are in for another one to two hikes over the next two meetings. beyond that, do we see the freefall that is happening with

goods inflation give the fed the opportunity to pause longer-term and allow interest rates to settle around that environment? if that is the case there is an opportunity for risk assets to continue to work in the first half of the year. i think it becomes more problematic as we move into the back half of the year. kriti: patrick, i'm looking at your title. cohead of quantitative strategy. talk to me about how you pricing in china, with numbers that are still kind of up in the air when it comes to case count, when it comes to death count. how do you price something like a chinese reopening into an equity market that is coming off some carnage in 2022? patrick: i think it depends on what your options are. if you are a u.s.-focused investors there are areas within commodities that could ultimately catch a bid in response to the reopening. there could be upward pressure on inflation because of that. that is where i would look. if you look overseas there are opportunities through playing

europe, in particular they have a fair amount of exposure to a lot of those commodity-oriented companies, and they are closer from an export perspective. in reality the best way to play it is china directly, assuming you kriti: certainly something we are going to keep an eye on. what is the equity market more sensitive to, yields or oil prices? patrick: i think it is bond yields here. it has really been the direction of interest rates, which have really dictated market performance for the better part of the last year. he saw that at the beginning of last year, where interest rates rocketed up, and expensive companies really plummeted in response to that as investors reevaluated the cash flows of those names. to the extent we continue to see interest rates decline, it is going to be a risk-on appetite and support the continued upside

within technology companies, or tech-plus. it is ultimately where you want to keep your focus. interest rates and inflation are going to be the key drivers here. kriti: patrick of credit suisse, through everything at you and he hit it out of the park. coming up on the show, some bleak numbers from boeing. i analysts are growing concerned over persistent supply chain issues after the plane manufacturer reported -- get this -- it's sixth straight quarter of losses. this is bloomberg. ♪ every day, millions of things need to get to where they're going. and at chevron, we're working to help reduce the carbon intensity of the fuels that keep things moving. today, we're producing renewable diesel

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kriti: this is bloomberg markets. let's talk about the earnings stories that are driving the markets this morning. kimberly-clark is one of them. the company behind household products like scott and huggies, it has showed a worse than expected volume decline in the quarter. joining us now, bringing case. walk us through -- brendan case. walk us through the issues kimberly-clark has had. >> consumers are starting to run out of patience with increases.

kimberly-clark said its prices were up 10% in the fourth quarter, unit volumes were down. the biggest decline in almost two years. people are flying less huggies, and it was a similar story last week with procter & gamble. kriti: one of the pieces that stood out to me is that kimberly-clark is talking about their international exposure, and specifically the fx hit they are taking. this is something we hear from tech companies. the idea that a stronger dollar is eating into their profits. it applies to kimberly-clark as well. walk us through that piece of it. brendan: that has been a headwind, and is going to be another headwind going forward. as other international issues as well. one example is a slowing birth rate in china, which is going to affect diaper demand. but the issue i think people are responding to in the market is much more about domestic demand and whether the u.s. consumer is finally starting to lose a little steam and to start

reacting more to the price increases that they have been seeing for more than a year now. kriti: if you do see this worsening macroeconomic environment, a slowing consumer, what kind of changes are kimberly-clark making touch -- making to address it? are we looking at price hikes? brendan: we are looking at price hikes. kimberly-clark said it is going to raise prices again this quarter. that said, inflation has been showing signs of slowing down in recent months, so it may be at price increases stand out a little more than they would have last year. so far the company says it is -- it has actually been pleasantly surprised by how consumers have reacted. in other words, it hasn't been more negative if there is one thing to learn from their report today, it is that consumers are noticing and starting to react. kriti: what kind of precedent does this send for some of the other retail companies as well? is kimberly-clark on its own

here or are we looking at the same for procter & gamble, among others? brendan: i think you are seeing it across the board. you are seeing it from procter & gamble, and terms of price increases versus volume declines. you are even starting to see it from some food companies, like conagra, which had a similar mix of price increases and falling demand on a unit volume basis. we will get more information next month when the big retailers like walmart and target report. walmart had talked about some unit volume declines in the summer, it in their most recent quarter things picked up. we'll have to see what they say for the fourth quarter, that big holiday quarter. kriti: brendan case all over the retail story, and i have to say his former be used to be industrials, each brings us to our next segment. going coming out with earnings and moving the market. struggling to navigate higher cost and supply chain issues. experienced it's sixth-consecutive money-losing

quarter. joining us now is george ferguson. george, always a pleasure to have you on the show. we were talking a few hours ago on bloomberg radio about following as a company. we will get to the losses, but it feels like the past couple of years it has moved away from defense and more to commercial. walk us through that. george: i think that as commercial booms i think you see these aerospace companies, like especially boeing, the commercial will take off and you will have a much larger civil side of the business. that defense business really helps to temper things in a downturn, and it did at the beginning of this pandemic downturn. and now i would suspect, as we get post-pandemic, i would suspect there seems to be a really strong demand for airplanes in the world.

i would suspect the commercial, civil side would be the lion share of revenue and lion share of profit. there is still a ways to go to get there at this point. kriti: at the end of the day boeing is a major heavyweight for the dow, and a player in the s&p 500 as well. let's talk about the earnings. where are the losses stemming from, even though they had a pretty good fourth quarter when it comes to jet deliveries? george: the drag really was in commercial, right? defense did not perform well this quarter. there -- there is a couple of defense programs that have large losses that drag to those defense margins down to single digits, with a used to be double digits. civil, commercial is the real drag right now. the challenge we heard is that supply chains are going to continue to be a problem throughout 2023. i think boeing had a really nice delivery cadence in december.

i think probably the market may have thought that that would be put behind them, that we would be looking at, you know, pretty good deliveries in 2023, perhaps even rising deliveries as we got to the end of 2023. especially the build rate further 737 max, which is important for profitability. they indicated they built 31. they said the high-end of guidance would be a build rate of 41, but they do not have the stability in the supply chain yet to give us a definitive time when they will break through that higher rate, or even if they will get it done in 2023. i think there are some people anticipating they might announce that today. it didn't happen, and that gives us insight into supply chains. it is still a challenge. kriti: that build rate is interesting. we had a headline today about boeing pushing back on the 787 target rate, building about five per month. it looks like they cannot even

hit that. talk to us about the regional divergence when we are talking about how china plays a role in boeing's bottom line. it feels like they have lost a bit of that customer base in the last couple of years. we also got a headline this morning that they plan to pause their remarketing of the max built for china. factor china into the boeing story. george: that news, if i understand it correctly, is positive. that tells me if they are not going to remarket the planes they have built for the china market, the suspect china may open soon for deliveries. that would be huge, right? to give you context, prior to the pandemic and max grounding the chinese would take close to 200 planes a year. boeing would deliver the lion share, 160-ish. probably the largest customer if you think of china as a single customer. the government controls a lot of

the buying, so it almost is. last year, 2020 they delivered no airplanes into china. airbus delivered about 100, a little shy of 100. you can see right there, that is a super important customer to get online, to build higher production rates and boost profitability. kriti: george, 30 seconds here. you talked about china, you talked about the defense sector. let's talk about the exposure to the airline space. if you start to see the macroeconomic man to catch up to the airlines, what kind of slowdown could be seen? george: i think boeing and airbus are not exposed to the macroeconomics, because they have such large backlog. i suspect they will find airlines that are willing to take those planes even through a soft patch. kriti: good news in that case for boeing, even though the shares are down in the dumps today. down about .3%. george ferguson of bloomberg intelligence, we thank you.

the bank of canada, raising interest rates for an eight consecutive time. it might be a sign of what is to come for the fomc. stick with us. this is bloomberg. ♪

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>> with today's modest increase we expect to pause rate hikes while we assess the impact of the substantial monetary policy tightening already undertaken. to be clear, this is a conditional pause. it is conditional on economic developments involving broadly and rough -- evolving broadly in line with our outline. if we need to do more to get inflation to the 2% target, we will. kriti: this is bloomberg markets. you are just listening to the bank of canada governor speaking earlier today after the bank's rate decision, leads me to something that caught my eye. we are one week away from the

fomc decision. a fabulous lineup, but for now let's focus on the inflation situation in canada, which brings me to this chart. the white line is the bank of canada overnight rate, which you can see a very aggressive tightening cycle in line with what you are seeing around the world. it also take a look at the inflation story. the blue line is the annual inflation rate, starting to come down. the bank of canada hiking by 25 basis points. the markets are pricing this in to some extent, making this potentially the very last hike we could see out of the bank of canada. the actual comments along those lines yet, but that is the expectation across the street. stick with us, though. we are going to talk about what this means. we are getting some breaking news. elon musk, saying the wall street journal story on $3 billion worth of capital raising, those talks are not accurate. the wall street journal reported that they would have to raise about $3 billion, mostly coming

from shares of twitter. he refutes that, says it is not true. stick with us. we have far more on the bank of canada, far more on the markets. at all coming up. this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service.

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>> mark: welcome, this is first word news mark:. the united states will send ukraine 31 of its battle tanks and -- along with the german commission -- commitment to send more tanks. they say will help ukraine achieve its strategic objectives. >> the expectation on the part of russia is that we will break up and we will not stay united but we are fully, thoroughly, totally united area mark: the decision by the u.s. and germany follows a broader trend of allied nations giving ukraine increasingly powerful weapons to

counter russia. u.s. short-sellers hindenburg research is targeting asia's richest men with accusations of market manipulation and fraud. that follows a run of successful bets against companies ranging from electric vehicle makers to twitter. the firm published in almost 100 page report on the adani group, sending shares tumbling today. they call the accusations baseless. bloomberg has learned that the u.s. vice chair of the federal reserve is the top contender to be the next head of the white house national economic council. the president has not yet made a final decision. global news, 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm mark this is bloomberg. ♪ ♪ jon: welcome to bloomberg markets. kriti: we are seeing red on the screen but perhaps the selling pressure has abated a little bit with the s&p 500 only down 0.4%. it was at session lows at 1% earlier. 344 on the 10 year yield. we have gone to a 6-7% trading range. that brings me to the dollar. after you see the yields move, the dollar potentially moving in sync with the canadian exchange rate stronger by about 0.2% off

the heels of that bank of canada decision we will dive into in a moment and brent crude has an 86 handle. a little bit of a risk reversal when it comes to the commodity market. jon: lots of earnings stories this week and we will dive deeper into technology later. in canada, we had a soft outlook from cn rail. in the u.s., some muslim -- similar messaging from norfolk southern which is down. kimberly-clark, challenges with their tissue business but also some of the currency headwinds and the shares are down to 15%. at&t is getting a nice pop, up about 6% in the quarterly numbers topped estimates and there were some cash flow questions over all that we will watch the telco sector and capital one shares a rallying but we are hearing from some of these players within the financial services world about

the need to provision against potential losses and that's one of the realities of this new environment with higher rates and what that means for the economy and subsequently the capital one customers. kriti: we will keep an ion that and the focus at the moment is coming from the north, bank of canada raising its key overnight lending rate by a quarter of its lending rate, signaling a pause with an impact of eight straight increases. they were asked about the prospect of rate cuts -- anytime soon. >> it's too early to be talking about cuts. inflation is still above 6% area yes, recent developments have reinforced our confidence that in patients coming down but we have a long way to go to get back to our 2% target. jon: let's get more perspective on those comments from the bank of canada.

joining us now is tiffany wilding, the north american economist at pimco. even though everybody was expecting another rate hike, there was a difference of opinion on whether we would see what appears to be a pause by the central bank or continued hawkish focus because of the inflation challenges. i wonder if what is coming for canada which is tied to housing factors into this need to take a pause for now. >> i think that's absolutely right. i think there are several reasons why they should pause. i think the reason why the consensus was surprised by the fact that they so explicitly said they would go on hold is because the economic data in canada has been more resilient as it has in other parts of the globe. there are good reasons to pause in the first is that they done a lot in a short time. monetary policy works at a lag

so at a certain point, you want to look around and take a breath and see with your actions to date are doing to the economy. the second reason is the canadian economy is more interest rate sensitive because of the way the mortgage market is set up with floating rate mortgages. the third reason is not only for canada but for economies across the developed markets, the so-called phillips curve where the relationship between unemployment and inflation has steepened a lot. it appears so and that means you could have big drops in inflation for somewhat little increases in the unemployment rate so that would argue that they could pause and maybe new to -- need to do a little less. kriti: we know the bank of canada is pausing and we expect the federal reserve to perhaps hit that point soon. does this create expectations

for the fed next week? >> certainly it could have implications for market pricing. we saw the u.s. market kind of reacting in a knee-jerk way to the canada decision this morning but i think there are differences between the two economies. that keeps the fed hiking maybe a little bit longer so we think the fed hikes another 25 basis points next week and they probably get another 25 and in march and maybe they are done after that so maybe one or two more hikes. the canadian outlook for inflation, i think there is reason to have more optimism than that of the u.s. but we think u.s. inflation is also coming down because canada has higher immigration flows and is expected to continue. that's good for labor supply. obviously, the inflation, because you have housing prices that are included in the inflation data, that will also

have some good implications for inflation coming down. i think there are good reasons why the bank of canada is causing and probably the fed will pause soon but not yet. jon: really helpful context on the difference between the two economies in the other big question becomes if we are at a pause, when do you potentially move from a pause to a pivot and generally there is that lag between deciding that we have reached our peak rates and now will change course. you been thinking about the policy -- about that based on where the economy goes from here. could bank of canada talk about rate cuts by the end of the year? >> tiff was mentioning it was too early to talk about cuts but in our outlook, we think the bank of canada probably cuts interest rates by the end of next year. our forecast for gdp growth is

similar to the u.s.. we think canada enters into a mild recession this year, sort of under the weight of the financial conditions tightening we have seen and more negative trends across broader developed markets. given that, we don't think inflation will be a problem and there will be less need for restrictive monetary policy. that will become clear as the unemployment rate takes up and in that context, we think it will be relatively easy for the bank of canada to start cuts by the end of this year. kriti: is this something that has largely in priced into the market? i'm looking at the surface level look at the loonie where you are seeing weakness in the canadian dollar off this decision. much of this was expected? >> you are right, there are more cuts that are priced in in the canadian bond market than the u.s. bond market for example.

nevertheless, you have to keep in mind that markets are a function of weighted average probabilities of all investors and as the day to deteriorate, i think the market will probably price in a higher probability of some sort of hard landing area it's certainly possible as we move through the year, markets could price and more cuts before eventually they kind of come to their senses about the economic realities. kriti: we will keep an i on this but thank you for being with us. coming up, we are going back to the u.s. equity market and ibm is set to read or results after the market close as well as tesla and we will break down what to expect from them and more. this is bloomberg. ♪

kriti: this is bloomberg markets. ibm is set to report first-quarter results after the market closes and they will benefit from a we can dollar because it generates half of its revenue from overseas. we will talk a little bit about this. ibm is subject to the same issues or same exposure that microsoft, apple, amazon and alphabet are exposed to which is the international piece of the equation. walk us through the fx impact we should watch for after the close. >> technology companies were hurt by a strong dollar over the past 1.5 years and that will slowly go away as the year progresses. for us, we have been observing

ibm results in constant currency so that doesn't change the way we look at the business. almost all of the business units should see softening of demand what kind of guidance do they get for next year and that will drive the stock. jon: for so many years now, the idea of having a solid cloud business has been rewarded on wall street but given the outlook, you've talked about it, the challenges the business areas having about international companies that are tied to the same equations, what about the ibm cloud business versus its rivals? >> their business is different than microsoft and amazon. they enable companies for cloud migration so they been strong over the last few porters. it helps companies that have a

large on premise foot print to migrate some of their work loads into public resources. having said that, i don't see any reason why you shouldn't see softening in the bond market come is just a matter of overall tech spending going down. relative to the other companies, the growth expectations for ibm are not as high as some of the other cloud companies. i think they have a better chance of not disappointing on a large scale compared to the bigger companies. kriti: talk to us about the domino effect. it's the idea of when you see the old guard companies, tech companies, what kind of ripple effect you see from ibm? >> a few things we will be focusing on is the guidance. the company says we will grow single digits at 3-5% but the

big factor will be their free cash flow. even though they had done well on the revenue, everybody's eyes will be what kind of guidance do they get from that regard. jon: we will be watching for that guidance and thank you for bringing us up to date on it. staying with earnings to be watching for later, tesla is set to report fourth-quarter results after the markets closed and investors are focusing on the demand picture, the profitability story and the overall delivery expectations for 2023. let's get more on that from garrett nelson. nice to have you with us. out of all of those areas, what is top of mind for you as we await tesla results? >> thanks for having me. first and foremost, investors will be looking at the release.

tesla has a really good recent earnings track record. the company has beat consensus in 12 of the last 13 quarters so a solid job the last few years. investors i think we'll be looking for any sort of bidens the divide for this year on the demand outlook following recent price cut announcements they have made regarding certain vehicles and any comments regarding the two new models, the semitruck in the cyber truck which will be forthcoming in the next year and potentially a stock buyback announcement they have alluded to over the last few months that we think could be on the order of 5-10,000,000,000 dollars. kriti: what kind of impact do we expect to see when we talk about the price cuts taken in the last quarter from around the world? >> it's going to hurt their

margins without a doubt. tesla each of the last three porters, their production has exceeded their sales. they've had a pretty meaningful increase in inventory. we think that's why they announced that the price cuts based on the anecdotal data we have seen in the last week or two, we think is having a positive impact on their sales volume. that, combined with the $7,500 federal tax credit which went into effect in the united states on january 1 and can be applied to lower-priced versions of the model three and model why, that will help their sales volume in 2023. jon: this raises questions amongst investors and bottom-line performance. when it comes to actually delivering on the bottom line, can you walk us through the

trend we've been seeing with tesla over the last few years? >> they normally have be on the top line but their margins of also been strong. you talk about a company with the strongest margins in the auto industry which is notorious for very weak margins and that's really the allure of tesla and that's their strength and that's why they've been so successful in growing the company in recent years. they went through a period prior to 2019 where they were missing pretty consistently. they have really turned the corner operationally and they have beat 12 of the last 13 quarters. the other thing to look at, consensus estimates for 2023 have come down a lot over the last two or three months and we

think expectations are more realistic at these levels. i think that's why you have seen a rebound in the stock so far this year after a disastrous 2022 in which the shares fell like 65% on a broad-based selloff. ev names like rivian and lucid were down 82% last years of tesla and formed their competitors. it was still a difficult year for electric vehicle companies last year and you see tesla shares [indiscernible] kriti: we have to ask you about elon musk. the wall street journal says he's looking for $3 billion financing when it comes to twitter payments. he has refuted this on twitter itself how much. of the elon musk wealth becomes an issue for tesla's valuation? >> in our view, it still the

primary headwind and the primary investment concern. it's ongoing losses at twitter and you have to sell more tesla stock in order to fund losses at twitter the root problem here is there is a lack of transparency. twitter is not publicly traded anymore so there was a lack of transparency as to what is happening there. all things considered, we consider the pros and cons. this is a story stock with inca pros really outweigh the cons of these levels after the sell off in the last year. a couple of big positives is the company's balance sheet is investment grade and practically has no debt on the balance sheet. in late december, the tesla cfo exercise stock options and purchase over 13,000 shares of stock and we view those as big positives. we also think the valuation is

as inexpensive as it's been in a long time at these levels. jon: the stock was about $380 in april of last year. thanks very much and we will watch those numbers closely after the bell. time for a quick break and when we come back, a price tag on the fountain of youth has one software entrepreneur rebooting his body. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

jon: this is bloomberg markets. time for today's for what it's worth. today our number is 2 million as in $2 million. if you are in your 30's or 40's, that's roughly what it costs to make you 18 again. we can't turn back the clock but one software entrepreneur is

made headlines for spending at least $2 million per year on a team of more than early doctors and health experts to give himself what he says is the body of an 18-year-old he was profiled in a bloomberg businessweek piece and he's not alone in trying to keep himself away from the aging realities. athletes like tom brady and lebron james spend a lot of money on this but $2 million as a standout amount. kriti: that will break the bank so i don't know if i would spend the same amount if i had to. good for him. i would much rather spend $2 million on this market. what do you think? jon: good long-term returns there i suppose. the thing about this profile, he sold braintree to ebay and made a lot of money but felt like he was missing something and now he has great absent intake of vegan calories every day which i would

have to work on as well to get up to speed area kriti: do what you got to do. i promise there is more markets ahead, this is bloomberg. ♪

romaine: microsoft living the script on market sentiment today. it could have been worse. s&p 500 holding at 4000. romaine bostick with katie greifeld. we are well off the lows for the day. right now, the highs of the day. katie: highs of the session still lower but the laws have been 1.7%. you are seeing a little bit of a comeback into the bond market. treasurers had obviously been selling of earlier on the day but nn