>> welcome to the bloomberg audiences. this is first word news. a russian warplane fired on one of its own cities today. it wounded three people. the russian state run media reported that the explosion happened on a residential street in the city of bell grove. it is by russian forces to launch attacks against ukraine since the war began more than a year ago. the supreme court has until midnight to decide on access to a commonly used abortion drug while legal challenges go forward. the biden administration has argued that low court rulings on method prestone will of the -- disrupt availability. a judge overturned the approval

and other courts have ruled they can no longer prescribe it by mail. more than 5 million women have taken this drug since the fda approved a 23 years ago. the top u.s. financial regulators once screwed -- want to strengthen the tools against firms. janet yellen announced on friday a proposal that might make it easier for regulators to classify financial entities like insurers, hedge funds, private act witty, and cryptocurrencies as systemically important. the proposed guidance will encourage those who worry that financial regulation could grow too lax under the trump administration. global news, 20 for hours a day, powered by more than 2700 journals and analysts and more than one or 20 countries. i'm simone foxman. this is bloomberg.

>>, john ehrlichman, and i am alix steel in for kriti gupta. it feels like a snooze fest, but volume is up. if you dig underneath it, it is interesting. the best sector is consumer discretionary and the worst is materials. that highlights for me the pmi data we got earlier this morning. services are gangbusters ahead of procter & gamble. you will talk about that in a second. they are holding up well, and that is helping the discretionary sector. materials are a different story. manufacturing is over, but it is light over here. what does this mean? a little bit of selling in the front end. yield is up. >> helpful context. going under the hood, the story of topline versus bottom-line, we are exploring during earnings season. you mentioned png. the market is encouraged by the

story that is laid out. encouraged on a sales from. for companies that have to watch costs, we've got that word from lift on the reality today. the ceo with a message, and the wall street journal is reporting that the latest layoffs are upward of 36% of the staff, so we will watch the market closely. plenty of production in the quarter. some of the sales commentary is leaving investors less than inspired, but it is a hot space. the metals market. we are seeing that with teck resources, which is trying to find out if it will be able to go his own way or if glenn gordon is going to report in the last few minutes that dealmaker veteran michael klein, we are figuring out the path for critters suisse, working with glencore on this deal development, and we will watch to see what happens over the

coming days on the resources story. we have more in the hour. >> that should be fascinating. let's get back to the pmi. this is a global story. there are two sides of the situation. you have manufacturing costs below 50. that is the most contraction, we are pushing past the 15 mark, but on the other hand, services tell a very different story. smashing higher, all above 50, driving the total composite pmi past the estimates. that could reignite inflation, and point to a lower risk of recession. earlier, i spoke to chris williams, at s&p global, to discuss thoughts on this data. >> is like a debt cap bounce. it is going to fade because the fundamentals are already there. you will see it at the tail end of the year, so wait and see how that plays out, but digging down , that story is still intact.

you can enjoy this will the sun signs, mak the summer, but i think most are preparing for a tough winter ahead again this year. >> let's get a perspective from citibank. are we looking at a debt cap balance, or potential re-acceleration? >> i think there is a lot to do for important data, and to even reflect the declines we seen earlier. in sentiment data. what's going on, for example in construction, broadly. there is a low level of sentiment readings. this is a low level for manufacturing orders. but the actual production and employment contact is only begun to slow. i fear again, if we were to rebound a little bit in those

readings, there is a significant. of week is, and it doesn't have to wait until winter before we start to see it look a little more like the earlier weakness we saw in sentiment data. >> we are navigating the data. we are navigating earnings as well. one of the concerns some investors have had is what happens to the profit picture through the years, but you've have been looking historically as well at the trend of where earnings go and where the market goes. for those who are more defensively minded in their position, what does history tell us? >> this is the thing. profits drive share prices. profits are falling. they fall in for the last three quarters, if you count one and two. i don't think they're going to start rising in the next two quarters. that will continue down this path. i don't think it has to be severe. it won't be filled everywhere.

energy, aerospace, defense. these are fine. there is a pent up demand for travel, leisure and hospitality. we don't know how long that will last. but, cyclical areas, machinery, construction, all of these little narrow areas that are traditional, they have all-time highs. we expect the profits to fall in the next couple of quarters. a lot of the reckoning and the financial sectors will be filled in parts of the real economy as well over the course of the a. >> this might seem like a silly question, but if profits fall, does stock? it sounds obvious, but there's an argument to be made that we priced in the recession on the october low, and it will not be that hard to get a balance off of earning. what do you think of that? >> there are a couple of important things going on. we have a men's short interest in the market. we have bearish sentiment and positioning. everything you heard from others

earlier, you hear me. talking about this for a year. a lot of investors are on the sidelines, and that makes it hard to the market down. it really does. the other side of this is last year, we had a double digit decline in stock and bond prices. that did a lot. he gave us a down payment on the fair market. what we think is a premature at this point to discount economic recovery. before we fill anything close to the trough in the next couple of quarters. the path being run are different from our rate view, and it keeps us cautious. but the decline did a lot of the work that you need to discount the recession but not all of it. that's why the s&p is so incredible. really wonderful to get your perspective. have a good weekend. thank you so much. coming up, the biggest oil services are rick porting

interest results. we are getting those details next. this is bloomberg area --.

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>> this is bloomberg markets with alix steel and jon erlichman. a of our -- for our stock of the hour. slb is releasing its first quarter results this morning. the sheriff has been under some pressure today. some focus on cash flow. we know the stock is down, but there is still a big expectation for these oil services players that because we have not seen a lot of investment in recent years, there could be a pretty

interesting pipeline of business down the road. >> they would be front and center with the exposure. let's get more on this with the bloomberg oilfield reporter. a lot of analysts are positive on the stock. why is he getting hit so hard? >> a couple things. there is a blip with the business that acts like an explorer. it relies on production, and there was an outage due to a pipeline that affected production. a service company had a problem with production, and a business unit in canada had lower oil prices, so that might affect some emp's they serve that affect revenue, so that thing did them. we also think analysts ink the bar is really high, so if you have one like that, you have to impress to shoot the stock up. they beat by three cents, and it was considered more of a medium kind of beat.

and their second-quarter forecast was in line, so it left investors wanting more. >> you speak to a lot of the canadian energy investors. we have them on bloomberg, even though there is a short-term on that, they are often bullish longer-term, and to the point earlier, you talk about this in your story. the lack of investment over the last few years is something that potentially could make for an interesting business case for them in the next two years. >> absolutely. they were big on this call today. they were talking about a big boom for future years in international and offshore, and middle east. those are right within the wheelhouse, and the other thing lost is the service companies themselves. they are also choosing not to invest in new equipment. that is a problem in the past. when prices rise, they would go out and spend a lot of money to put in a whole bunch of equipment, and it would hurt the

service price, now these companies are able to charge more because it is hard to get your hands on drilling rigs. >> awesome. we appreciate that. good analysis. stick with commodities. it's super cool. i hope you did it, but in the last hour we learned that the veteran deal maker michael klein has been looking at tech with new's found support for a whole business. there was a. there. jojo is covering this space. he joins me now. is hard to read this prompter from far away. we've got glencore expecting a great year and profits. they are also talking about teck resources. the window is slowly closing. what are the odds of this happening? >> it is a tough call. tack is confident that they will get the split they want, and glencore is confident they will get enough investors on their side to basically get a deal done and buying up tech.

everyone wants to claim up the win, but when we dig into it, there are fair questions over whether or not tech will be able to win this split. we had a number of investors come out to say they do not support this split. last week, we had two big ones. it was not the best deal for investors, and i want to talk about this yesterday. the latest letter from glencore suggest that many people are wanting tech to hold off on the vote of the split. that is set for april 26. >> the other interesting thing. some have wondered with global headlines, whether the federal government in about a player stepping in here, and we will see what happens on that aunt, but in british columbia, we have a premier there who is taking the opportunity to step up to the podium when it comes to the sensitivities of pairing cold

businesses together. >> it's been interesting. you have seen this political aspect come in. like you said, in british columbia, you seldom come out and say we have to do something that supports canadian companies, and a few supporters around tech have made a case of almost a patriotic case, we see this all the time in the mining industry. not just in canada but in canada. we need minerals dug here in the united states, and copper doug in the united states. i think this is just another part of the playbook that is expected to play out. we find it interesting to see these comments coming on. >> running it out, this is where they are trying to go, but where is it at in terms of their performance and the actual profitability to grow. >> where is glencore without this? >> yes. >> they are trading a massive

number of mining assets, and its production showed, they are doing quite well. there was a pullback after the volatility due to russia. glencore saying the opposite. they are doing better than ever. they will beat the high of their estimate of 3.2 billion. they're pushing out a new estimate range and what they will get from that. it is good for glencore. if they don't get this deal, i don't think they would say it's the best of days, but the company is doing well. >> helpful context. we will continue to watch all of this excitement around the metal space. thank you so much for your reporting. it has been interesting looking at gold these days, and then there is a huge story in the tour auto area. more than 28 million dollars worth of gold missing after a heist at canada's largest airport. let's go to pearson airport to speak with john musselman who has been covering this dramatic

tale which a lot of people have compared to movie storylines. >> absolutely. the goodfellas movie, the heist of 1978, that was a real event at jfk. there were a lot of similarities to that and what happened here. what we know is a flight, now we are learning from air canada, it arrived monday evening. the container was removed, and more than $20 million worth of gold and other valuables, the police say, and sometime after it came off, over to a cargo facility, it disappeared. police have no idea where it is, and they are saying very little about the investigation. >> it is just -- you would say, let's get some answers, but at the same time, it is an unusual situation. >> exactly. i don't think they want -- look. they didn't go public with this until thursday. they knew about this on monday evening. there are hundreds of security

cameras at any airport, and anywhere in the world. plus cargo facilities. so they are looking at the security video. they want to see if there is a truck leaving the area that looks suspicious. they will be checking all of the staff and all of the airlines involved. you will need access cards to get anywhere to get in and out. they were asked if this is organized crime or an inside job. does this look professional? they didn't want to tip their hat and say this is an ongoing investigation. they are trying to find out what happened to this money, but experts we talked to said that this is likely long gone, and we are not even in the country. >> that's amazing. if you've ever tried to lift a gold bar, one of them is like really heavy. you can't stop this stuff in a pocketbook and run away. it takes a lot of work it do we have an idea of how they were able to move that bar.

>> you hit the nail on the head. you will not move this stuff and a knapsack. this will take a heavy duty truck of some sort to move that off the property. how they did that, without being detected, that is part of the investigation, but anyone your airport with security issues, they are saying this happened off of our security perimeter. on a road called airport road, there is a cargo facility. someone was able to get information on when the flight was arriving and when the light was moving, they got it out and off the property. that is what detectives are going to try and figure out as they go through security video, as they interview employees. all of this as they track money. >> helpful context. we appreciate that. tracking this story. one day, this could become a movie, but there is a movie now that has been made tied to the

blackberry story. obviously, a device that once dominated the smartphone industry. it's back in hollywood with a new feature film. we will hear from one of the stars, next. this is bloomberg.

>> this is bloomberg markets. it's time for what it's worth. 83 billion dollars. that is how much the business behind blackberry was worth back in 2008. back then, it was called research in motion. apple was worth twice as much is blackberry. today, it's a thousand times more valuable than the former rival. a new hollywood movie about the blackberry rise was coming out next week. we spoke to jay barrett scholl who plays one of the company's cofounders in the film. >> the world we live in today

rests in large part on what these nerds did in the 90's. and, they're not household names. i think there is a cult of personality around tech titans and innovators, and for the most part, these guys are still under the radar, and they are somewhat tragic in the end, narratively, because they went from half of the market share to zero, after the advent of the iphone. it has everything you want out of a good story, plus under and a committee which is a chronic canadian thing. >> there you go. is anyone over 40 going to see that movie? i asked that jokingly, but i remember when a ticker was research in motion, but anyone younger than me is going to not know what blackberry is or care. >> what is interesting is that

while the bones of the story are there, they did take a series of creative liberties to perhaps jazz it up. it's going to be interesting to see how the company reacts to it, but they are thinking of a hollywood movie experience in all of this. it is a reminder obviously of just what was a fascinating story. yes, if you're over 40, but business with the rise and fall. a company with a high start at one point. >> totally. i don't want to take away from the fact that it was a canadian success story for business. i totally appreciate that. and. i remember those days. there was a pay in there. >> j bearish l was saying, he only gave up his blackberry a couple of years ago. that was the big headline for me for an actor still using blackberry up until a couple of years ago. >> no doubt. a pleasure to hang out with you for a half-hour.

you are looking at the market being pretty much nowhere, but materials are weighing on that. discretionary staples doing well. happy weekend. this is number. this is number. 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

>> we have brought the first full week of earnings, and you look at the market, and the reaction is matt. >> just up ahead. it had been lower earlier today. it looks like we will end the week a little bit lower. i think you can call it unchanged. >> a lot of that speak to digest. we are beginning a blackout. before the fomc decision create we are kicking off to the close. two hours left in the trading day. i am scarlet fu with katie greifeld. romaine bostick is offer the day. the dollar is not mo