john: the european union's pitching member states on a new package of sanctions. the proposed sanctions would extend to several chinese companies, ukrainian air forces -- regions of 35 iranian made drones overnight, all of them were shot down. treasury secretary says there is no good alternative to congress lifting the debt gap and told abc the use of the 14th amendment would spark a constitutional crisis. the president is scheduled to meet with congressional leaders tomorrow to discuss the debt ceiling.

wild fires burning across alberta have prompted evacuations of almost 30,000 residents and the shutdown of oil and natural gas. a total of 109 fires were burning as of late sunday, 30 of which were classified as out-of-control. global news, 24 hours a day, on air and on bloomberg originals, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. jon: welcome to bloomberg markets. matt: let us get a check out what is going on in the markets, swinging back and forth between gains and losses throughout the session, spending most of the time in the red. s&p 500 is almost exactly

unchanged at 41.35, 10 year yield rising six basis points back to 3.50 as the dollar comes down just a bit, this is the bloomberg dollar index at 1218, we see a jump in oil. crude up $1.95. jon: helpful context, let us get to other stories on how businesses feel about the outlook. tyson foods shares up more than 15%, by comparison six flags has been busy. theme parks are humming, those shares are up more than 20%. we continue to watch what is happening with regional banks and pac west is off the highs of the session. the ceo trying to appease investors with words of encouragement and slashing the dividend. matt: a lot going on in terms of movers today, even if the s&p is

almost completely unchanged. one notable company to watch is apple, looking to sell about $5 billion in bonds according to people familiar with the story. earlier, someone from invesco reacted to the offering. >> we have seen quite a lot of demand through high-quality fixed income and i think the value proposition is quite good. we have positive real yields, spreads that put the average investment grade at about 5% to a yield, apple will come inside of that. tremendous demand. there is more demand for industrials than there are financials, a lot of financial issuance. industrials are made quite well supported. i would expect to be very well received. jon: joining us to break it all down is robert schiffman, who helps to cover apple for bloomberg intelligence. this comes up every time we see apple dip into the debt market.

for a company that is a monster when it comes to greeting cash flow, what is the strategy of tapping the debt world when you have money coming in? robert: sometimes, math can be fun. i am glad my parents sent me to a math camp, because this is really about average cost of capital. apple has the ability to borrow debt and lower the cost of capital. your weighted average cost of debt capital is basically zero. the question is, why are they only borrowing 5 billion today, why aren't they borrowing 15 billion? matt: it is interesting indirect perfect person to talk to on this bond math. why go to market at all at 5% when not only do you have a great cash flow, but i think they have $170 billion in their chest already. so even if you do not move your

weighted average cost of capital up that high, why not sit it out? big companies and governments tend to go to market all the time, even when it does not look like they need to. robert: listen, this is clearly not a case of borrow when you can, not when you have to. apple can borrow whatever they want in whatever size they want and i do not see that going away for the foreseeable future. the reality is, they want to get to a cash neutral position. you do that by spending more then you're taking in, apple just announced a $90 billion repurchase authorization that brings buyback capacity so little over $110 billion. i think over the foreseeable future, the next two to three years, you will see apple go from annual shareholder returns around $100 billion to around $125 billion. they have no other uses of capital other than to pour back into their business, because they cannot buy anybody.

we saw what happened when microsoft tried to buy activision and governments around the world said we do not want you to get any bigger. we will see greater shareholder returns. at the same time to be cash neutral, looks like apple probably wants to stick to around 110 to 120 billion cash on their balance she all times. same amount of cash as debt, apple's debt levels have not changed that much over the past decade. even though cash has come down by about 100 billion. matt: great to get you in the studio, huge story today. i heard tom keene view a shadow on surveillance this morning, i said we have to get him. shares of tyson foods recording their biggest drop in over three years after cutting their full-year sales forecast, the ceo saying a challenging market as consumers switch to cheaper foods. michael hurts her joins us for

more. what is cheaper than chicken? michael: chicken is usually one of the cheapest ones, people are moving from beef to chicken, steak to a burger, then down from a burger to maybe chicken breast and that will be happening across tyson's business. seeing a lot lower returns than what they got during the covid-19 outbreak, which is when they made record profits. jon: in your story, you talk about the squeeze that companies like tyson and others are feeling, with respect to input costs. michael: when russia invaded ukraine roughly a year ago, meat prices went to a record. we still have a drought across a good chunk of the center of the u.s., so tyson is paying more to feed their animals. costs are going up. at the same time, consumers are trying to cut back on spending

due to food inflation. matt: is there any dent being made in the meat revenue from beyond meat or perfect burger or any of these fake meat products? i know there was an incredibly small take up, is that growing at all? michael: i think it is a little bit stabilized, long-term that will be a huge growth factor. but the market share of alternative protein might remain pretty stable, 10% may be seen as an upside of plant protein longer-term. in the near term, some of those producers have seen sales that are not good comps to the covid-19, when everyone was loading up their refrigerators. matt: thanks for your time, michael hirtzer talking to us about tyson foods, the stock is down.

coming up, we will get insight on the market for electric trucks from jonathan randall, the president of mack trucks north america. this is bloomberg. ♪

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affordable ev's. matt: the interesting part of that is we have seen companies like tesla, for example, cut prices. only on the lower end models. they are cutting prices on the model three and model y, not so much the models s or x and they raised prices on high-end models. lucid is cutting prices on the most expensive vehicle it offers, it was going for $160,000 last year and they brought it down to $133,000. they are coming out with earnings today, we expect a loss of about $600 million. if that continues, they have to get help from the biggest shareholder, the saudi investment fund. it is interesting that lucid is worth more than rivian, a company that delivered more vehicles. rivian is worth $13 billion market cap today, lucid is over $14 billion. even with the drop.

that is interesting, tesla is worth 545 billion dollars, a heck of a lot more. let us get more insight on the eeev market in the form of ev's driving giant trucks, jonathan randall joins us. they now offer to electric models, which i think is so fascinating. we are not talking about the long haul big rigs, you are offering electric vehicles that get goods down the last mile. jonathan: correct. thanks for having me on, it is a pleasure to join you. anywhere from 26,000 pounds up to 80,000 pounds when you talk about the electric garbage truck , so we went first into the market with what we call the lre , an industry that mack has orbited for a long time it is successful. a few months ago, launched the medium duty electric to the

market and we will start production later this year on that for pickup and delivery applications. jon: in terms of battery size, how important was it to get the math right when it came to the size and ability of the trucks to deliver what you want them to deliver? jonathan: it is a balancing act for us. when you talk about trucks, year to talk about payload. as an example, we are looking for the appropriate amount of range, still being able to carry payload the customers need. on the garbage trucks, that equals 376 kilowatt battery pack but gives us about 70 to 100 miles, depending on application. about 1000 lifts. it carries about 10 tons of garbage. a little different when you talk about the medium duty electric, a little less weight sensitive but still important. we will have two ranges.

150 kilowatts will go about 140 miles of range, the 240 will go about 230 miles. able to carry the majority of the payload necessary in those applications. matt: you've seen a number of companies try and fail to make big ev semi's, one is that going to happen? when will we see the 18 wheelers doing cross-country trips powered by batteries? jonathan: it is different technology to meet different applications. we went where we thoughtful battery electric made a lot of sense first, which is why we went to refuse, home every night to the same facility so you can charge them for the necessary time before they go out on their routes the next morning. same thing for medium duty electric. the larger trucks, the class a trucks, long-haul trucks, there is opportunity for that not only with battery electric, which we are pursuing, but hydrogen fuel

cell. we believe that technology makes sense for the heavier weight and applications and the longer haul, so it will be a mixture of both depending on customer needs. jon: you alluded to it, but just to build on that question, the challenge of making sure that charging is there for you when you are making big trips, how much time and thought went into that? jonathan: it is an ongoing challenge we are facing as an industry. it is one of the things we are focused on at mack is establishing charging infrastructure. presenting this kind of technology to the market requires a very holistic approach, which means not only do you need to meet needs with a battery electric truck that can do the job you needed to do, you need the charging, the infrastructure, the charging ports and you need to have the

capability to service new technology. we are very focused on developing those relationships as an example, working on i-5 corridor high where where folks can go in and charge the trucks. it remains a challenge and when we are working to tackle as an industry. matt: the bev and potentially hydrogen powered trucks, that addresses a sustainability issue that volvo has been so interested in. they are doing a lot of other things, for example making trucks out of sustainable steel. on the safety side of things, the dream i think is autonomous trucking for the long-haul. are we any closer to that, is that a possibility? are you working with technology companies to make your trucks autonomous or self driven? jonathan: we are working with a lot of different technologies, anything that helps the

applications provide efficient, cost-effective delivery of goods. whether it is battery electric or autonomous, the different phases of autonomous. we are in phase three, potentially face for -- phase four and maybe phase five. it is all about providing efficient solutions to transport but also provided sustainability or sustainable solution for the environment. nothing is off the table. jon: i believe the volvo deal for mack is now more than two decades in the books. can you walk us through in terms of being able to build out the business and think about this, the power of that partnership? jonathan: mack is a 123-year-old company and we have been innovating since we were founded. we sit in allentown,

pennsylvania, were all of the trucks are built for the entire world. the partnership with the volvo group and working with the volvo group gives us access to that much more global technology and resources to drive the innovation that we need to succeed around the world. so something that is working in a mine in sweden, we might be able to grab the technology -- whether it is autonomous, fully electric, carbonized or carbon free and bring it to north america. we will borrow liberally from the rest of the world on technology they have tested and works, that works the other way as well. it opens up that much more opportunity for us to succeed with the resources available to us as being part of the volvo group. jon: thanks for your time today, we appreciate it. coming up, as investors focus on the help of u.s. banks at the top of the hour, we will get the

much-anticipated fed senior loan survey. details next. this is bloomberg. ♪

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jon: we are just a few minutes away from the release of the feds senior officer opinion survey, known better as the sloos. in the week of recent banking stress, it has taken on greater importance. katie greifeld is joining us to talk more, a lot of people are curious about how much banks are willing to lend. what do we get out of this typically? katie: it is an opinion survey, which tells you is pretty soft. executive methodology is up to 80 large to mystic banks at 24 he was branches of foreign banks are included in the survey, they

are asked whether standards for approving loans have changed. the answers range from tighten considerably to ease considerably, it is an opinion survey. there is no hard data that comes from this. trying to map the fallout, availability of credit in the economy, it is another clue. matt: we are looking and where we can. i never heard sloos -- i guess i heard of it, but i never heard anyone call it that. tonight, we are going to get at 4:00 from the fed financial stability report. i guess they do that every month, but now we are really paying attention. what are we going to do with all of the data? are we trying to form a better picture of how close we are to the recession? katie: i think we were having this conversation a few hours ago. one of the dynamics of the past two months -- we were talking about earlier how it feels like all of these he satiric releases our top-tier data as we try to

figure out -- exactly, the h8, the sloos and the like. this is all part of the mosaic of trying to map this out. specific to the sloos, which is coming in about four or five minutes. the fed actually had this in hand when they delivered the rate hike wednesday. you had powell asked many different ways what was going to say, he skirted all of the questions. we heard from the chicago fed president today, he is a new addition to the fed. he said he is getting quote vibes that a credit suisse's beginning, we should have the data in hand and a couple of minutes. jon: hopefully we can find out if there is a personalized sloos license plate in new york state. i'm sure you contract that information down. to your point, the inflation data we get this week will warrant all sorts of questions around where rates go from here.

the actions by the banks themselves in terms of lending is also playing a role in whether the fed needs to continue tightening area -- tightening. katie: everyone is turned to quantify the stress we are seeing within regional banks, midsize banks. what is that in terms of tightening? it is one of those things impossible to quantify, so it is one of the debates we will be having for months. when it comes to the psychology of the banks, how much they are lending, this is a story that will take months to play out. something to keep in mind as we count down to the data just four minutes away. matt: i do not know if you can zoom in on my phone, this is an unusual request. i have a new york state personalized license plate tracker on my phone, you can get sloos. you can get it. if you want that license plate, there you go. [laughter] jon: well done.

every day a learning lesson from matt miller, for matt and myself , let us give you a quick update on what is happening in the markets as we go to break. we will have the loan survey data. pretty mixed market, this is bloomberg. ♪

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jon: struggling for direction, u.s. stocks on this monday afternoon. a range bound market persists once again. 4137 on the s&p 500, kicking you off to the close on this monday afternoon. romaine bostick here. we talk about that sideways trade which has been overshadowed i think by some of the concerns about what the fed is going to do