5 Things You Need to Know to Start Your Day

China re-tightens its grip on Covid Zero, Disney makes a shock announcement and Brazil is favored to win the World Cup. Hope that China is l [View in browser]( [Bloomberg]( China re-tightens its grip on Covid Zero, Disney makes a shock announcement and Brazil is favored to win the World Cup. Covid Zero Hope that China is loosening its Covid curbs dissipated after a city near Beijing that was rumored to be a [test case]( for all virus restrictions has [suspended]( schools, locked down universities and asked residents to stay at home for five days. The move came just over a week since China issued a suite of guidelines aimed at making its Covid approach [more targeted](. As a result, risk aversion returned to markets, with stocks falling and demand rising for the dollar. Disney shock [Walt Disney shares jumped]( 10% in pre-market trading after it brought back former leader Bob Iger to replace his successor Bob Chapek as chief executive officer. Iger, 71, was previously CEO for 15 years and has agreed to serve for two years while helping find a permanent replacement. He will be charged with reversing the steep decline in Disney shares, which have fallen about 41% this year. Meanwhile, Chapek — who steps down immediately — is likely to leave with exit payments and benefits that could be[worth more than $23 million](. World Cup Brazil is the [favorite to win the World Cup](, according to more than a third of the participants of the latest MLIV Pulse survey. Argentina is the second-most favored, garnering more than 20% of the responses. Brazil’s national team seeks redemption after a [humiliating]( 7-1 drubbing at home to Germany in the semi-finals of the 2014 tournament. That looks like a distinct possibility after the team dominated its region during qualifying games -- winning 14 of 17 matches and conceding just five goals. Stocks fall US equity futures fell, with S&P 500 contracts down 0.6% as of 5:42 a.m. in New York. Nasdaq 100 contracts slid 0.8%. The dollar powered higher, pressuring all Group-of-10 currencies. Treasuries were little changed, with 10-year yields hovering around 3.83%. Oil and gold fell, while Bitcoin slid more than 1%. Coming up… We’ll get the October reading for the Chicago Fed National Activity Index at 8:30 a.m., followed by a sale of $42 billion of two-year notes at 11:30 a.m. then an auction of $43 billion of five-year notes at 1 p.m. Federal Reserve of San Francisco President Mary Daly speaks at 1 p.m. What we’ve been reading Here’s what caught our eye over the weekend: - [No OneLove armbands]( for seven football teams at the World Cup - [Elon Musk welcomes Ye]( back to Twitter after clearing Trump’s return - [FTX owes more than $3 billion]( to its 50 biggest unsecured creditors - Goldman says[bear markets will last](in 2023 - Airlines push for [pilots flying solo]( to cut costs - [Shein’s source of cotton]( has been tied to a region accused of forced labor - Democrats face bleak odds for an [immigration deal]( before 2023 And finally, here’s what Joe’s interested in this morning Sometimes discussions about hiring within a given industry can seem semantic. Is there a "labor shortage"? Or is there a shortage of employers willing to pay proper wages and give employees decent conditions? And what are the implications of the different framings? On today's episode of the Odd Lots podcast [we're back on the trucking beat]( talking to longtime driver [Gord Magill](. For years, long before the pandemic, there's been talk about a driver shortage. But as Gord points out, there are numerous practices within the industry that devalue drivers and increase churn. Among them is the problem of driver detention: drivers can spend hours waiting at warehouses for their goods to be loaded/unloaded. And because their pay is by the mile, not by the hour, and because regulations specifically exempt employers from having to pay drivers overtime, this is unpaid work. Stepping back, if you take the view that there's a "driver shortage" then the answer would be to say, make it easier to get a Commercial Driver's License to get on the road. But if you turn it around, and identify the problem as one of driver retention due to poor treatment, then solutions would go toward fixing issues like detention so that existing drivers don't bounce from the industry as fast as they do. With a high level of labor market slack, as the US has had for years (pre-pandemic), business models that assume a high degree of employee churn seem sustainable (Amazon warehouses perhaps might be another relevant example here). But in more robust labor markets, these practices get exposed and the models start to buckle. For the last two years we've been talking about a supply-chain crisis, and yet drivers have spent numerous idle hours during all this time sitting at warehouses not getting paid -- a terrible use of human time and capital. (As Gord points out, it was particularly bad during the peak of Covid precautions, as numerous sites prevented drivers from coming in to use the bathroom, lunch rooms, or other facilities during the wait.) Anyway, it's a fascinating conversation. Check it out on [Spotify]( or [Apple]( and [check out Gord's Substack here](. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwartÂ]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](