thank you jan hatzius jan hatzius , goldman sachs. walmart stock down 6%. the ceo saying u.s. inflation levels particularly in food and fuel created margins in operating costs more than we expected. tom: i went to michelle meyer on that with all of her wonderful work at bank of america and now at mastercard. it is even a five percentile study and the summer is simple, the middle class gets crushed and that is what walmart is seeing. jonathan: you can pick your data point and pick your price. they will speak to walmart for a less outlook. lisa: as they deal with the increase in material prices and try to absorb more to keep prices low because they have a more price-sensitive clientele. how much are they a precursor to other stores that we will see with margin pressure? that will be a big question how much they will absorb and how high can they raise prices. jonathan: stock is down more than 6%. features positive, 1.6% on the s&p. from new york city, for our audience worldwide him heard on real -- heard on radio and seen on tv this is "bloomberg , surveillance." ♪ ritika: keepin

tom: we mentioned this to jan hatzius.his data is speaking, and it is beginning to show changes in housing. the 10 year yield now above 3%. that is like dow 10,000. jonathan: two mondays ago we dropped to 2.84%, and now we are back above 3%. citi published mom's ago, reflecting on how they won't hesitate to keep pushing beyond the point of neutral. he said this at the end, the market take away is clear. this is andrew hollenhorst and the team at citi. a very negative environment for risk assets. tom: right now joining us as well is seth carpenter, global chief economist morgan stanley. whether it was maynard keynes or the giant paul samuelson who said when the facts change, i change my mind, right now for the deciles of america, the facts are changing. how crushed will the metaclass be dusty middle class b? -- will the middle class be? seth: we had the end of the child tax credit, a surge in energy prices and a surge in food prices. so that means for people who are below the middle of the income distribution, their ability

you featured the jan hatzius piece where he says it is over and done. jonathan: and for the first time in last couple of years looking to downgrade the inflation forecast instead of upgrade. speaking of central bank decisions, i would say the ecb is in the spotlight. june 9. lisa: not in a good way. did they follow the bank of england with a dose of honesty, or do they come out with something more comforting? how they do that when it has gotten away from them, the narrative of inflation tied with slowing growth? jonathan: we are negative on the s&p once again by 1.5%. on the nasdaq, you cannot get a break. down 1.9%. yields are higher on the 10 year by six basis points. looking at 3.20%. the five-year the highest since 2008. lisa: we have gotten so numb to these record highs. every day, to get a new postcrisis five, whether post-pandemic prices or post-pandemic -- or post mortgage crisis, getting that every day is shocking to the system. today we have an incredible lineup. to give us a sense of are we there yet? when do we get capitulation? what are the

jan hatzius joining us in around 50 minutes. from new york, this is bloomberg. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. elon musk says he will go ahead with his $44 billion takeover of twitter only if the company can substantiate its claims about the proportion of bots on the service. twitter says fewer than 5% of its accounts are fake. musk says he believes the number is a lot higher. twitter says it is committed to completing the deal at the agreed-upon price. the euro area economy grew more than initially estimated at the start of the year. gdp rose 0.3% in the first quarter. european consumers emerged from the pandemic with pent-up demand and large amounts of savings. still, the war in ukraine has added to cost-of-living concerns by stoking up energy prices and adding to an already record euros on inflation. turkeys president erdogan has put the brakes on nato's nordic expansion. erdogan says he will not allow sweden and finland to join the alliance because of their status on kurdish militants. er

jonathan: jan hatzius of goldman sachs on the path forward. good morning.ity futures positive 1.5% on the nasdaq 100. two names to talk about, home depot and walmart. transactions at home depot just a little bit softer. the average ticket higher. that stock up by 3%. walmart down by 6%. this issue about moving away from general merchandise, focusing on groceries, lower profit margins versus higher profit margins, this is what companies like walmart right now are dealing with as this cost-of-living issue gets that much bigger. tom: we see it with retail sales across america and the huge body of america, the millions of labor at walmart. dana peterson is going to be with us after the retail sales numbers, but we are thrilled to bring you someone hardwired to the retail of america, and particularly the aspiration that all of us are guilty of. dana is the chief research officer at tell c advisory group and lives new york retail like no one i know. i was absolutely crushed at the price rise on the celine hoodie sweatshirt come amends. i thought it should be in m

that is the jan hatzius view, folks.n: we've got to wait a whole lot longer to see that. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. -- longer to see that. alongside tom keene and lisa abramowicz, i'm jonathan ferro. this is "bloomberg surveillance ." ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. sanctions in russia own oil will be on the agenda today when italy's prime minister mario draghi meets with president biden at the white house. he resolutely back sanctions despite his country's reliance on russian energy. in finland, the parliament's defense committee has concluded that the country should join nato. finland started on the path joining the alliance after its neighbor russia invaded ukraine. three out of four finns now support joining nato, up from just one out of five before the invasion of ukraine. ferdinand marcos' has brought -- ferdinand marcos' son has brought the family back to power. tightening restrictio