europe are considering tough financial sanctions against russia if president vladimir putin invades ukraine. bloomberg has learned russia's largest banks could be targeted along with the country's ability to convert rubles into dollars and currencies. president biden is set to possibly spell out the sanctions during his video conference with president putin today, which the white house said and it just afternoon. russia has denied plans to attack ukraine. germany's new government signed a coalition agreement today after it was approved by each of the three parties. soon to be german chancellor, olaf scholz, and his ministers are set to be sworn in tomorrow. he will inherit a german economy in a weaker state than when his party won elections in late september. china is warning the united states it will pay a price for its diplomatic boycott of the winter olympics. the biden administration has decided not to send any officials to the games in beijing. china's foreign ministry says the olympics are not a stage for

political stances or manipulation. bloomberg news says it will continue to do all it can to help -- a year after she was detained in china. 12 months of detention is a long time for anyone to endure and the company remains worried about her well-being. chinese authorities say she was detained on suspicion of national conspiracy law violations and her rights are fully guaranteed. 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 crumpton. this is bloomberg.

matt: it is 1 p.m. in new york, 7 p.m. in berlin and 2:00 a.m. and hong kong. i'm matt miller. here are the top stories we are following for you from around the world. global equities rebound with the s&p 500 jumping to the highest level since the emergence of the omicron variant. traders hold onto optimism the new variant won't derail economic growth. bitcoin is back in the green. we will talk the bounce back with the head of institutional coverage at falcon next and the pandemic accelerates life online. we will discuss tech infrastructure and what it takes for companies to keep up with the demand with the ceo of drive net. first, let's take a quick check of what is going on in the markets. we have a rally on our hands, not quite the level we saw on the last trading day before thanksgiving. we closed on that day at 4700 on

the s&p. we are almost there, but friday brought us down substantially and we've had a lot of volatility since. the nasdaq leading the way in terms of the major indexed. more than 3% as the big tech stocks rise and you can see the 10 year yield coming up as well. we saw a huge drop a couple of trading sessions ago. a big bounce back yesterday and now we are back above the closing levels. nymex crude ounce and back. one stock that caught my eye in this rally is volkswagen. those shares jumped after a report said the porsche family is exploring part of their stake in the broader automakers to support a porsche brand ipo. remember, they actually own the

majority of volkswagen, 53.3%. they hold it in porsche holding. if volkswagen goes through with an ipo of the brand porsche, volkswagen owned bentley, lamborghini, audi, and the number of other brands, if they do, a paper here in germany says the porsche family may sell some of their volkswagen shares to fund the purchase of the shares in the ipo. a very interesting story. if you go into the bloomberg terminal, you can see how extreme the move is. the last time we saw a move of that size was in march of this year. this is a great chart that dan curtis put together showing the extremity of moves and how rarely you see a move like this in volkswagen shares. in the last few minutes, we had the three year treasury auction results coming out. >> we've got $54 billion worth

of that auction coming on to the markets to digest and we are getting yields of 1% versus the pre-yield sales of 1.0 3%. we do actually get a bit of a dip here 5.5 basis points. this is the highest yielding auction going back to february of 2020 dislocations in the market when

it comes to demand. we do actually see some dip buying coming into play. if i run you through the other numbers, in line with the average of the past six auctions, so pretty good demand here. foreign demand at 52.2%. this is after the hawkish pivot from the fed last week. this is the first auction after that and that's why investors are looking toward this. we had the cpi data at the end of the weekend we are getting a wild low number. i think for the fed to change its trajectory. we have the fed meeting next week and this is what bond investors are looking toward. we did see yields rising on that three years and we see some dip buying coming into play here. matt: thank you let's bring in bloomberg's senior markets editor, mark rate -- mike regan to talk about this. more than 3% on the nasdaq with tech leading the way. michael: when you look at the leadership of the market on a day like this, it can be hard to suss out what is the fundamentals driving the leadership and the positioning

reversal and leveraging we saw last week. a lot of hedge funds got crowded trades, got out from under them, d leveraged, and so we saw big swings in some of those tech stocks that make up some of their most important holdings. the other tailwind is people taking a breath and thinking about the omicron variant and what the risk is there. barclays out with a note pointing out what is pretty logical in that the global economy is in a much better position to deal with a scary new variant than it was through the delta variant door original outbreak of the virus. there are therapeutics and the government is getting more aggressive with vaccine mandates.

and just learning to live with these shocks from the outbreak of the virus. all the previous headlines over the longer term about the delta variant -- i think the omicron headlines around thanksgiving were a shock and we are now taking a more sober look. matt: followed by jay powell's pivot to a more hawkish stance, that seems to me to be a big headwind. even if the fed raises twice, we are only 50 to 70% basis points above the line. it's not going to be a huge damper to economic growth, is it? michael: it seems like the fed has moved to the hawkish side of the boat. if there is a worse headwind from this new variant, there is room for this to come back and be a little more dovish.

the fed is going to overdeliver on what is signaling. as far as the meeting next week, fed communication is a battleship. it's an aircraft carrier that does not turn on a dime. we are headed in this hawkish zone for a while but there's the possibility that if things get bad enough, the surprise would be it going more dovish about temp -- about tapering and rate hikes. matt: we are showing the vix right now and just in terms of one day, we are back down to 21 spot 83. but we did jump above 35. volatility was pretty high. nick polis told a couple of our reporters from data track that he thinks the rocket that she things the wild ride is going to persist.

december could still be a volatile month and even though he is stronger stocks long-term, what do you think about the volatility index? michael: i don't think he is alone in that sort of thinking. this general sense of bullishness you hear, it is 2022 for all the strategists. they are talking about next year, the first half of next year. goldman sachs has a risk allocation indicator that combines a bunch of different cross asset signals. it doesn't look like in the near term that these indicators have bottomed enough to signal blue skies ahead and that we've seen the bottom.

i think a lot of people are agreeing that it could be a choppy end to the year even if they are bullish about 2022 and the longer term. matt: fantastic reporting at bloomberg news. coming up, as the omicron variant spurs an increase in restrictions to prevent the spread of covid, we will discuss the importance of tech infrastructure as many continue remote work. we will talk to the ceo of drive net. they hope -- they help put networks in the cloud. this is bloomberg. ♪

matt: we have some breaking news right now on merck. mark is going to sell $8 billion in bonds for the purchase of excel run. at a time when we were expecting bond issuance to start to taper off and, really, when ig credit has had a rough time of late, merck is coming out with an $8 billion bond issue for xlr on -- since the onset of the pandemic, people have been shuttered inside to prevent the spread of covid. they spent a lot more time online. here to discuss the growth of that infrastructure that makes

it possible to work and shop from home as -- is ido susan, the ceo and cofounder of drivenets tell us about your technology. ido: we are helping customers like at&t and others. this has allowed them to achieve two main goals. the first is to reduce the cost to support the manned of the traffic each of us consume more and more and the second reason is to allow them to create revenue and more ability to support the technology during covid-19.

to benefit all the cloud capability. matt: how much of this is about data growth? i remember when i bought my first ipod and thinking 30 gigs was big and i just bought an iphone that i think has a terabyte on it. but it's not like i put more stuff on the iphone, it's just the stuff i'm using it is full of more data. is that kind of growth going to be exponential? ido: as long as the internet is growing and as a consumer we consume more, even if you want or don't want. the same movie you are watching on youtube two years ago, the technology has gone full hd. today, it would be hk. the resolution is better and in order to consume that, you need

more bandwidth. the same when moving from 4g technology 25 g. anything you consume that you are using needs more bandwidth than this is the reason the internet is growing between 30% to 50% year-over-year, especially in the u.s., but worldwide. matt: even very successful in the past developing technologies. now that you are doing this business, how crowded is the field? there must be a lot of other companies that want to get network into the crowd. what gives you the advantage over everyone else? ido: first, i was lucky and successful my previous company and acquired by cisco. i have many good friends, but

the market is moving and we know how much it is challenged to change dramatically the technology to go to market, the business model. we see some movement from the incumbent, but it is not so drastic because of the challenges i just mentioned. but we also see other startups try to disrupt the market like we are doing. we already deployed with many customers and we have proved to everyone that it is doable. you are able to be like the cloud guys did in the past and today, everyone is using the

cloud. you don't build your own data center. matt: it seems like it has to be the evolution. ido susan is the ceo and cofounder of drivenets. i want to go to headlines we are getting on the call between president biden and pickton. we are getting a readout from the white house saying he voiced deep concerns about ukraine with president putin. russia has amassed i think 175,000 troops on the border with ukraine. president biden told jen he would respond with strong economic measures if the situation escalates on the border of ukraine. the two presidents test their teams to follow up on the issue according to the white house. they also apparently talked about ransomware and iran.

but the focus has been on the global response as president putin builds forces on the border with ukraine. more on the others this break as we rally in these markets. 20 past 1:00 and we are up 3% on the nasdaq. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. it has been a wild couple of days for bitcoin. we saw it plunge as much as 22% on saturday. a lot of us woke up shocked to the numbers. bitcoin back below $50,000 after it almost hit $70,000 just a couple of weeks before. now we are seeing it climb back above 50. i'm sure we will put a live

quote on the screen, but let's talk about the cryptocurrency market. this is a keyword -- institutional -- how much of the volatility we have seen is retail driven and how much institutional adoption are we seeing in terms of crypto? >> in terms of what we have seen, we currently service over 700 institutional clients. last year, 80% of our flows were crypto-native. this year, over 62% of our volume comes from institutional capital. so very much seeing institutions coming into the space. the move on friday was very much driven by a risk-off environment , led by institutions looking at traditional markets and applying that same sentiment to crypto. matt: so they were worried when

they saw meme stocks and retail favorites as well as a slew of risk assets from oil to gold dropping and they liquidated their bitcoin positions as part of that trade? aya: exactly. i think there were three main things that were the focus for what we saw friday that led into friday evening and saturday morning. the first is omicron. right now, there are a lot of travel restrictions happening in europe. so there is a risk-off mentality , waiting until people understand how much that's going to impact business into the holidays. the second is disappointment around the jobs report. i believe we brought in 200 10,000 jobs, where the expected west 550,000. so a little disappointing there. then, this hawkish view from the fed leading into that. matt: i want to ask about this

because i've been involved in bitcoin as a reporter for over a decade now. it started, there was a lot of central-bank skepticism around the creation. we thought or they thought if the fed is going to print money like crazy, let's get an asset that has some scarcity to balance that out. now that the fed gets hawkish, does that hurt bitcoins value? aya: 100%. it does a little bit. it decreases volatility for anyone looking at it as a hedge to inflation. the institutions are no longer just trading bitcoin and a theory and. they are looking at a number of other tokens in cryptocurrency today. whereas an institution use to just ask for bitcoin and then a theory them, we are looking at institutions trade something

that is top 100 market cap. they are looking at cryptocurrency as a form of things they can trade and hedge against the volatility they see. matt: great to get your insight thank you very much. one of the founders of falcon next and the head of institutional coverage talking to us about the crypto world. coming up, intel shares soar on plans to take its mobile i visit -- mobile i business public. that's next in our stock of the hour. this is bloomberg. ♪

mark: i am mark crumpton. senate democrats are rushing to confirm dozens of president biden's nominees before the

years and. if they don't, dozens of defense and foreign policy positions will need to go back to the white house for renomination. chuck schumer is preparing for -- and others, he's negotiating deals to help republicans get what they want in exchange for quick consideration of nominees. president biden and first lady jill visited the world war ii memorial in washington to mark the 80th anniversary of the attack on pearl harbor by japan. also, to honor the late senator bob dole, a veteran of the war who died on sunday. they walked to a wreath at the site which contained a mild sun fire come the state flower of kansas in order of the senator. the outbreak of the omicron variant has led to restrictions being imposed around the globe. france shut down nightclubs for four weeks. new york city called for a private-sector vaccine mandate.

south africa's rate of positive tests has jumped, but the cases has not over once hospitals so far -- not overwhelmed hospitals so far. a new vaccine is showing 71% effectiveness against multiple variants. the shop was developed by glaxosmithkline. according to trial results published today, no vaccinated participates developed severe disease or side effects were reported. the shop will be tested again against the overcrowded variant. -- omicron variant. 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 am mark crumpton. this is bloomberg. ♪

amanda: welcome to "bloomberg markets." matt: we welcome our bloomberg audiences each day. here are the stories we are following from around the world. tech to the rescue. they lead the biggest dock rally since march. speaking of the biggest, volkswagen shares are rallying the most since march as well. we will speak with a key auto analyst about a report on a potential bake sale and possibly an ipo. omicron affect the return to office plans. we speak to the conference board about their latest survey that details workers attitudes about the future. amanda: it certainly seems attitudes about stocks are positive. definitely momentum in the other direction. whatever concerned about eight more hawkish fed and what we don't know about the variant seems to be taking a backseat. big percentage swings. the nasdaq is leading the gains

up. every subgroup is higher. leadership from everything from tach to energy to financials -- tech to energy to financials. oil. this is not as bad as we thought. demand may pick up as people had hoped, for that could be wrong. for what it is worth, this stock market rebound is definitely paying off her etf traders who sunk a record $1.5 billion into a fund that uses options that deliver the three times nasdaq 100 performance. this is the proshares ultra pro qqq etf. intended for short-term trading. in terms of the move in the volume, pouring into the trade. it is working for now but this is a high risk trade. to be handled with caution i would say. matt: i have to say that i love

these charts. we have been using these today. dan curtis put one together for me around volkswagen to show the extremity of the moves over the last year. this qqq's chart is amazing. because back about 10 years. the growth is incredible. amanda: we should note we question how much of this is retail and how much is professional. this is the thing that can go the other way pretty sharply. handle with care. the chart tells a big story. matt: let's get to the volkswagen story now. though shares up over 8% after reports the porsche families are expanding -- exploring a sale as part of their huge stake in the automaker. that sale might help them find the purchase -- fund the purchase of the porsche brand subsidiary during an ipo. let's bring in arndt ellinghorst

, senior research analyst who has been covering this company and racing these cars for a long time. what do you think of at the possibility we will get an ipo? if you read founders or owners are selling stake, the stock goes down. they reported this today the stock went up. is that because we are getting closer to the real thing? arndt: we have talked about this many times. the press reports have come in regular terms here. i think there is a lot of -- it makes a lot of sense for the porsche family to reconsider the holdings they have. they own 53% of the vote. the volkswagen group, you have the porsche business. they feel passionate about that business. there is a structure for them to regain control of their core assets and revisit it.

i don't think it will be stock sales. i think it will be a spin to vw shareholders. that would make a lot more sense and unlock more value as well. matt: i'm looking at volkswagen's market cap. they own so many brands, audi, bentley, lamborghini, ducati, etc. the whole company is worth $130.8 billion. how much would portia be worth as a standalone company? -- porsche be worth as a standalone company? arndt: at least $100 billion. you can look at the valuation of ferrari. that's a much more exclusive carmaker. ferrari is trading at nine times revenue. porsche will turn itself into a fully electric company. you can dream about ev

valuations. it's an exciting product. $100 billion might not even be a high valuation for porsche. they should put that into the context of the entire vw group. you can see the discount and volkswagen. -- in volkswagen. amanda: is there an argument that the economy makes more sense, not less that they could cost share across some of the platforms? are they so different that separating makes sense? arndt: porsche has always shared technology with volkswagen, going back to the origins of the company, the boxer engine. when the introduced an suv, it was based on a volkswagen architecture. for smaller suvs as well. the companies will work together. they will work together at arms

length as they have done in the past when porsche was a listed entity. i don't think you will kill all the synergies or what drives the 15% to 20% operating margin porsche generates. matt: how important is racing? you talked about the fact that ferrari is more exclusive. they certainly don't win as many races outside of formula one. porsche has won 19 or 20 times. but porsche is not in f-1. , the only one who cares about this sort of thing because i like to watch the races? arndt: i do think racing is important. the picture behind me is lamonde, the dna of the porsche brand. they have never really tried formula one, except in the early 1990's. it was a failure then. i don't think f1 is a necessity. it is truly a scenario for

porsche. there have been press articles that the brand might come back. i think it's very interesting scenario. amanda: great to have you with us. arndt ellinghorst, bernstein's managing director and senior research analyst. coming up, omicron throws another wrench into company plans to retur to office. we will talk about what workers are thinking right now. stay with us. ♪

amanda: this is "bloomberg markets." perhaps unsurprisingly the push

to bring people back to the office as a new foe, omicron. how is it affecting businesses that had returned to work plans in place for months and the employees he will be returning? rebecca ray, vice president of workforce research with new data on this. great to heavy with us. what you seeing in terms of the current sentiment around going back to work? rebecca: thank you for having me. just when you thought it was safe to go back in the water, something else happens. i think this latest resurgence of a variant just gives us pause. i don't think you will be the massive disruptor i think was originally feared when we started to think about a new variant in the united states. it does appear in the early days to be more transmissible but milder. i think many companies are pushing back relatively slightly their return to the work challenges.

this is on top of an awful lot of -- vaccine mandates and coming back into the workplace and whether or not people will be needing to get a vaccine as a condition of employment. it is a very turbulent time for business leaders thinking about how to do this and what can you put in the ground before it gets offended. matt: the line used reminds me that my dad took me to see "jaws" in the theater when i was six years old. on a beach vacation. that did some nearly permanent damage. i never wanted to go back in the water, even though it is very safe to swim. i think we were on the atlantic coast. is this going to leave a permanent scar on the global workforce? is everything changed for good now or for decades maybe? rebecca: i have not been in the ocean since, but that's a different story.

there are some deep changes that will probably -- we will probably have for the rest of our natural working lives. we will find some sense of a pendulum swinging back and find some semblance of normalcy knowing full well the next normal is just around the corner. i think people will be very open to flexible work arrangements. companies will begin to think about how they might offer that to their prospective employees. i do think instead of perhaps what has been labeled as a great resignation, it's more about a great reckoning and reset. i say that for two reasons. all of us have been thinking about what does life need to look like going forward and had my balance work and life? i think what you are seeing is a lot of the great resignation headlines are reflective of some industries, some lower wage jobs. you are looking at folks getting

adjustments now in terms of the real value they offer. many folks come from industries where they were on the front lines and brat great risk. they are looking -- and were at rate risk. amanda: i am curious for your thoughts about how much of this does stay permanent. i'm a member of the "jaws" generation. six is way too young for that generation. one of the most powerful forces is the status quo. even though employees might say i went to work from home now, do this, do that. in the end, how quickly does big business revert to we are set up for you to be here? do we snap back to where we were or he has something really change? rebecca: i think we do have change. i don't think we will ever snap back to what it was but there will be more flex ability. they will be more openness to how work gets done. in that aspect i think that is permanent.

one thing we know from the last set of research surveys is people are leaving and not quite in the same way headlines would have you believe. when we asked why, it was for the same reasons they have always done. better pay and career advancement. coming up there in a somewhat distant spot, one in four said they wanted to do this for the flex ability to work from anywhere. i think it comes down to wanting to put your life together in a way that works for everything competing for your attention. family and everything else going on in the world. amanda: great to have you for this. really appreciate it. rebecca ray, conference board vice president at workforce research. stay with us. ♪

amanda: this is "bloomberg markets."

we are turning to stock of the hour. intel headed for its best day since march after it announced plans to spin off its automotive chip unit. >> this is a huge story for the broader market. intel driving those gains. intel only acquired a couple of years ago in 20 for $15 billion. -- 2015 for $15 billion. it has 80% of the market. this is the why. why spin it off and go public now? they specked this to happen in the next year. while intel has been lagging market share, they have been diversifying. it is part of that move. bus talk about revenue growth. mobileye revenue is up 62% year-over-year. it is not done yet.

despite the impact of the chip shortages and the impact on auto production, still gaining. take a look at what it's projecting for further debt the road. by 2030, the silicon market is going to be $115 billion. those projections are pretty strong. things are looking good for mobileye and by extension intel. matt: thank you very much, kriti gupta. let's get deeper into the markets. joining us to talk about the rally is katie gray felt. -- griefeld. the nasdaq is up 3%. what is driving this? katie: it is the classic buy the dip mentality. maybe that had finally started to crack. not the case. you have tech leading the charge

here. a big rally in the nasdaq 100. what is taking charge is the junkie is tech names -- junkiest tech names. today it's on track for the best day since april of 2020. after the fed stepped in through the kitchen sink at markets. it is up 6.6% right now. you are seeing all the fringes of markets really light up today. amanda: just to add another interesting piece to this, the notion insiders are selling at a very high rate feeds into that state of the market where it feels like musical chairs. everybody wants to make sure they have a chair. the smartest of the smart money generally gets a chair in this scenario. what do you make of that data? katy: those types of data releases do come out. people get worried about it for

a little bit. does not seem to really be making a difference in the tape today. it seems like a big, broad rally. i'm curious what happens on friday when we get that release expected to be the hottest annual inflation since the 1980's. if we think back to what was spooking marcus lee weeks ago, two weeks ago, it was a federal reserve. that's what i'm keeping an eye on. matt: the fed, even if it pivoted hawkish and does decide to raise rates to or three times next year, we are less than 1%, right? is that enough to slow economic growth? 20 markets really start to worry about economic growth getting hit by rate rises? katie: that's a great question. that is something i have been asking economists and investors. with a 1% fed funds rate, with that killed a man and kill the labor market momentum we have seen? probably not. it always comes back to the

direction of travel and the direction of travel rates higher. see that reflected in the credit market. if you look at the stress expressed in terms of spreads widening, in terms of this haven bid we have seen. it seems to spooked markets. it would not be a super huge change. amanda: it is one of the biggest -- as it should be, but we have seen in profitability. you can argue about valuation but the profitability and margin expansion of the companies has helped underpin these markets. what is the expectation for fourth quarter? katie: you are seeing 2022 earnings estimates coming down. amanda, that is what has been powering this bull market. how strong corporate america is right now. the fact that even with all this concern about inflation, margins really have not felt that hit. bottom lines are very strong. that is the question going into

2022. some of these estimates start to creep lower but they consensus among wall street analysts about how earnings are going to shape up tended to enter she what happened. -- undershoot what happened. matt: merck is issuing bonds to finance an acquisition. after we have seen the shorting of ig bonds over the last week and high-yield bonds getting sold off for the third week in a row, what does that space look like to you? katie: it's incredible how quickly the mood shifts. you see a lot of issuers hold back on their borrowing as markets -- he saw the vix spike up. now that we have this big broad rally market conditions are favorable. it is no surprise to see than

the opportunistic and take that window in which to sell their debt. there seems to be broad risk on rally right now. matt: thank you very much, katie. looking at this market and rally mode, amanda. does it turn around? do we sell off gains by the end of the session? amanda: iou a canadian dollar for the last, admitted that on the markets. i will sit tight on making one today. matt: i thought we could go double or nothing. for amanda lang, i matt miller. this is bloomberg. ♪

mark: i am mark crumpton. president biden how they secure video call with vladimir putin. the white house says mr. biden

voiced concerns of the united states and eu allies about russia's escalation of forces in ukraine and said it would be strong economic and other measures in the event of military escalation. the leaders were also said to have discussed the ransomware and joint work on regional issues such as iran. european commission president reiterated the eu is ready to wrap up efforts to counter any further aggression from russia against ukraine. bloomberg reports the block in the u.s. are wing sanctions against russia should president putin invade ukraine. >> the european union will respond appropriately to any further aggressions. including breaches of international law and any other malicious actions. taken against us or our neighbors in ukraine. mark: she