moscow's military buildup. he echoed president biden's warning that the probability of an invasion of ukraine is still very high. >> our information indicates clearly these forces, including ground troops, aircraft, ships, are preparing to launch an attack against ukraine in the coming days. >> russia says no invasion of ukraine is underway or planned, but in an official response to the biden administration's security assurances, russia said they may have to resort to unspecified technical measures. the u.k. is set to scrap the golden visa program, giving westerners a path to residents if they invest more than $2.5 million. u.k. had already tightened rules because of the fear of money laundering.

in canada, prime minister justin trudeau says emergency orders have cast a wide net across the industry. firms are taking a harder look at who they do business with. any suspicious transactions must be reported to the government. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ matt: good afternoon from new york. it is one :00 here, 6:00 in london 2:00 a.m. in hong kong. ,i'm matt miller. welcome to bloomberg markets. here are the top stories we are following from around the world. concerns over russia and ukraine are shaking markets again.

one sector falling is chips. this comes as nvidia falls. we will discuss with vijay rakesh of mizuho securities. and we will have live coverage from nissan's canton, mississippi plant after the company announced it will build two battery electric vehicles for the u.s. first, let's get a look at what is happening in markets. stocks are off of their session lows. the s&p down 1.5%. tech stocks are pulling us down. the nasdaq 100 off 1.7%. we are seeing money go into bonds. that brings the 10-year yield down below 2%. it has been lower throughout the session. we are off of our session lows in terms of stock indexes and yield. gold right now up 1.5%.

near $1900 an ounce, the highest level since june. the reasons surround ukraine. president biden warning the probability of an invasion by russia is very high. russia says it has no plans to invade ukraine. eu leaders meeting in brussels says they are ready to impose sanctions if needed. >> if there is an aggression, i will immediately call for the council to propose the package of sanctions. i am sure that even with what is required, the council will approve them. matt: meanwhile, antony blinken is proposing a meeting with sergey lavrov in europe next week. for more insight, let's bring in a research fellow at the center for european policy studies. thanks for joining us. we are hearing conflicting

reports. a couple of days ago, it was said that russia was pulling back troops from its base. president biden told us they actually increase to true count by 7000. what should we believe here? >> we should believe the story of russia bluffing. there is a big history of how russia strategizes. this is where we are now seeing this russia bluffing. there are no signs of pulling back. we witnessed 7000 more troops added. he is also trying to use the advantage with cyberattacks and everything, and we know there is a high probability of the kremlin being behind that. this place is well with the russian strategy, not taking dialogue, but instead how long can the u.s. and its allies stay in this mode.

the european union has 27 member states. it plays quite well in the strategy to destabilize, misinform, to strategize cyberattacks and see if there could be gaps or disagreements in the western and nato allies. matt: what does president putin want? what are his ultimate aims with all of this mess making that he is doing globally? >> he was quite vocal and clear. he wants to remain and extend the presence in the region. ukraine is a particularly sensitive target. one reason is geopolitical, and the other is ideological. geopolitics is clear, russia want security guarantees that ukraine will not become more western, will not become a nato member. but this goes beyond the

agreement between russia and ukraine. russia cannot afford setting the rules for the global government. this is what we are seeing now. it is a matter of principle that it should not be russia deciding what independent states want for their future. another thing is the ideological. russia is an autocracy, having a strong and prospering democracy right next to it. it is not in line with its plans for autocracy, like china, belarus. this is not in the plans of russia. matt: all of this costs a lot of money. vladimir putin has that money as energy prices rise. his warchest is repeatedly refilled. interestingly, by the europeans themselves.

can they afford to stop paying him, to stop funding these kinds of activities? >> this is a very good question. here, we should remain relative. this will be costly for everyone, the one to impose the sanctions, the west and the european union, but this will be much more costly for russia. it will be much more difficult to adjust for russia than the west. several factors here. the oil and natural gas, the two things that russia wants to base this on. oil experts, they say it is not only about oil independence on imports from russia, but also affects the global price. i think many people are drawing the parallels with iran but russian exports much more oil than iran. this has an impact on the global market price. the other thing is natural gas

which european states are dependent on. however, we can see that dependence has dropped. there is also growing lng exports from the united states. what is also important is, the eu is committed to the green transition. this is more of a medium to long-term goal, but to this day, it still decreases the dependence on russia. the other factor is we are still in the middle of winter. there is dependence on russian gas, but russia also depends on its own exports. russia needs them or actually at this stage than the eu or the u.s. does. matt: thank you for joining us, great intelligence, research fellow at the center for european policy studies. speaking of that green push -- i am going to nissan now, building

two battery electric vehicles in mississippi. a growing field of consumer evs. ed ludlow is live from the canton, mississippi plant. telus the headlines. >> this is a $5 million investment for two new models. a nissan and an infinity ev. the plan is not to hire any new workers but to retrain 2000 of them to handle ev's. this is a hybrid model. produce electric and combustion engine vehicles, but it was more of a tease than anything else. they have a 2030 plan to spend $18 billion to have 40% of sales in the u.s. the battery electric. this is just a small announcement in what we are led to believe is owing to be a chain of announcements over the

next few years. matt: what does this mean for the local economy, how many people are they employing? >> i spoke with the governor, tate reeves. he was saying the knock on effect is all about localizing supply chain. what they plan to do is not only build these new ev's but also a battery plant. they are hoping to attract jobs and the focus is on retraining the existing workforce. matt: in terms of ev sales, there needs to be a lot of infrastructure. you have been reporting on dvds for years now. is the infrastructure there to support the demand? >> i spoke to the coo a couple of minutes ago. he said you can never be 100% confident in your supply chain. that doesn't mean that if you don't have assad supply chain you cannot have business continuity, but that is why they feel good about mississippi being the next part of their ev evolution.

they think they can quickly turn this factory into one that produces two new battery electric models. matt: they will need some chips, but that is a problem they will be dealing with throughout the year. ed, thank you. investors have a chip on their shoulder, as nvidia shares drop. despite earnings beating estimates, shares are off. we will discuss the latest. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. nvidia failed to impress investors with its forecast, even though it topped estimates with strong growth in the current quarter. joining us now is vijay rakesh, senior semiconductor analyst at mizuho securities. what is the problem now specifically with nvidia? why are investors disappointed? vijay: thanks for having me on. nvidia, the bar was a little bit high. they pretty much came in line with where the street was, but a lot of it was because of supply constraints. they noted that revenues were affected by supply. they see an acceleration of data centers for the rest of the year. the big upside for april was

almost entirely data centers. i would also say, if you look at ai, only 10% penetrated in the server base. there is still a long road ahead in terms of ramping that business. matt: what is the breakdown -- i know what nvidia does for automotive, you are talking about the data center demand, now ai what is the breakdown over this company gets the revenue? >> about 30% plus is data center. gaming is a chunk. the rest is a lot of the desktop, etc. definitely, data center is where the focus is, that is where the margins are. rowing 70% plus year-over-year. gaining is also growing.

very strong growth in a lot of these segments. for a company of their size, they grew the top line 60% last year with gaming and data centers, so you have strong growth for them. matt: there was a time when ai seemed a little bit fantastical, but now investors are taking it seriously. the metaverse, tucson,'s -- to some, seen fantastical. are these going to be huge areas of growth in the future? vijay: they have talked about $100 billion from the omniverse, metaverse. everybody is talking about this, customer service, bots in the metaverse. it is a huge software license revenue for them.

ai itself is driving a lot of growth in terms of recommendations, processing. all of that is driving things for them. they are the leaders by far. the competition is nowhere close. matt: i was going to ask about the investment, as well. a lot of these chipmakers need to invest building new fabs, ramping up capacity. how much of a story is that for nvidia? vijay: they have one big boundary. they are getting a lot -- fou ndry. they are getting a lot of it from there. you will see supply improve. you are seeing the data center side especially accelerating into the rest of the year. i think the pullback is one where you can add more.

matt: are chips ascendant in your view? we all talk about how demand will grow exponentially, and you look at a company like nvidia, which was looking like a truly dollar company, but is -- trillion dollar company but is now 600 billion. terry: in general -- vijay: in general, growth is slowing. in the previous segment, you talked about data center, ai. not a lot of supply coming on. spending on the memory side, not a lot of supply. names like micron, other great names to own looking out, but supply is coming on. analog industrial. multiple fabs being built.

those are areas where you want to be more cautious as you look it over the next two years. matt: great to have you on. really appreciate your insight in this area. vijay rakesh mizuho securities talking about nvidia and the chip industry globally. it is a huge story today, as is inflation. nestle is feeling inflationary pressures. the ceo says profitability may decline as a result. this is the concern for corporations. how inflation impact margins? we will be hearing from mark schneider. this is bloomberg. ♪

matt: this is bloomberg markets.

i'm matt miller. let's get to something right now that caught my eye, and that is mortgage rates in the u.s. getting closer and closer to 4%. the average for a 30 year loan is 3.92%, the highest we have seen since before the pandemic, back in may 2019. this comes on the same day that we learn a new u.s. home construction fell in january for the first time in four months. that suggests the red hot housing. market may be sent to cool off the other way you can look at this, they are not building enough, not enough inventory, and as mortgage rates go up, people may scramble to get a house. that could drive the housing market for a little bit longer. it has been an incredibly hot market. speaking of hot markets and inflation, the world's largest food and beverage company,

nestle, has warned profitability may decline for a second year admits that inflation. it is hitting their margins. ceo mark schneider said inflationary pressures continue to rise and that it is easier to raise prices on premium products than it is on the broader projects -- products. >> inflationary pressures continue to rise. it is a safe bet that inflation will hit us harder in 22 than in 21. all of the internal work continues but we also have to resort to responsible pricing. pricing is easier at the premium and of the segment. think about nespresso. over all, we will have to do responsible pricing in order to offset inflation. that is well understood by retail partners and consumers. >> give me a sense of where you

are hoping to raise prices without hurting demand the most. i know you are looking at moderate increases, but going back to nespresso, it has always been protected. cannot go higher in terms of price hikes? >> we generally stay away from pinpointing specific products or brands or geographies here from the center. the general statement is, all the more premium side of things, it is easier to do. when you have a direct to consumer model, it is also easier to do that. whenever you have retail partners, you have to sit down for negotiations, wait until the next reset date. i think inflationary pressures are such that, across the board, you will have to take moderate and responsible increases. we are particularly responsible in our pricing activities in

emerging markets. we know the ability to pay is very much governed by disposable incomes and daily cash incomes. matt: that was mark schneider, the nestle ceo. we are getting breaking headlines from allianz, saying that operating profit beat estimates, 3.5 one billion euros. we were only looking for 3.20 9 billion euros. they will take it $3.7 billion charge for the u.s. hedge fund implosion. not quite sure if the word implosion was theirs or ours. they are also reducing their provisions for 2021 by $2.8 billion. those could offset each other. operating profits, better-than-expected, but there is a charge of $3.7 billion. that is a big charge or a drop

in u.s. hedge fund investments. let's look at what is happening in markets. the s&p 500 off of its session lows, down six at two points -- 62 points. the dow is down about 400 points. the nasdaq leading the way down. the 10-year yield also coming off as investors seek safety in government debt. 1.771% is what the u.s. 10 year is yielding. this is bloomberg. ♪

ritika: president biden is warning that the probability of ukraine invasion is very high.

biden spoke to reporters this morning for a trip to ohio. pres. biden: it is very high because they have not moaned any troops out -- moved any troops out, they have moved troops in. number one. number two, we only they are engaged in an operation. every indication we have is they are prepared to into ukraine and attack ukraine. ritika: the official response from russia is it has no plans to invade ukraine. japan is rolling back some of the strictest border measures in the road -- in the world. the prime minister is walking a narrow path on has to make a policy that brought out his two predecessors. it will ease quarantine rules as of march 1. he is trying to balance the public who wants to maintain

strict border controls and business groups who want the curbs relaxed. business in sydney, austria was shut down today after the city's first fatal shock in almost 50 years just days before austria plans to reopened borders to international tourists. officials say at 35 year-old man was attacked by a 15 foot great white shark. australian media reported it was the first deadly shark attack in sydney going back to 1963. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. john: welcome to "bloomberg markets." matt: here are the top stories.

u.s. stocks are falling and investors are seeking safety in the bond market as they worry about the economic impacts of that policy but really more so concerned about geopolitical risks. we will speak to anna han to discuss the moves. we will dig deeper into ukraine. the u.s. is ramping up warnings of a possible russian attack with president biden saying a false flag events may be underway and also saying that he thinks the likelihood of an attack is very high as you just heard. prime minister trudeau has emergency powers that he invoked rocking the canadian financial world. portfolio managers and securities firms are being forced to look harder at who they are doing business with. we will discuss all of that coming out. john: those escalating tensions, the geopolitical reality is

dragging on stocks across north america. the s&p 500 now off with 10% for the year. on the day we were down more than 1% and the nasdaq 100 taking a harder hit because we have seen growth names and technology stocks continue to struggle in this area of uncertainty. we have nvidia come out with quarterly results. you can argue it was a different momentum and maybe the response would be different but there has been a reluctance to buy and intact. there is an appetite for gold and safer sectors like staples and obviously this has been a global story. let's start with our "for what it is worth" segment because we wanted to dig deeper into those ukraine tensions and what it is meaning for some of the various assets out there. we wanted to give you a look at some of the russian connections to this story and what has been happening in those markets. a couple of the etf's that track that market, 4.5% declines. we have been tracking the story of the ruble in recent days.

the currency stories in certain markets connected to this also in focus and there is the oil story which is complicated because we saw crude prices previously rallying on the geopolitical tensions but there are so many different factors, but the oil story at the center of some of the tensions we have seen between u.s. allies and europe as well. matt: it is interesting to see oil down. that is the one thing that i find hard to compute. obviously as tensions rise over ukraine, you will see a dip in markets that has led markets over the last few sessions and you will see investors pile into safe havens like bonds and gold, the yen, the swissie. selling oil is a strange one. the only thing i can think, we got some reports this morning that nuclear talks are progressing and they go faster and do well and if you type on the bloomberg opec go, iran is

one of the few countries in opec that still has a decent amount of capacity. if those nuclear talks progressed, they could end up putting more zeros on the market and that could be the reason you see oil falling. john: it is an excellent point. the idea of more supply in such a tight market is one of the factors out there and we have to ask the question about whether or not these tensions continue, whether this is a one-day blip and oil makes its way back toward those levels we were watching. let's dive deeper into where we are with a lot of headlines. joining us from london is christopher, the managing director of emea. you have 25 years of experience covering the political economy of russia. you spent some time working in moscow as well. i know that coming into this week with so many different headlines hourly, you did have a view on the situation and to a

certain extent you can see that happening behind the scenes. can you share that with us? christopher: the brief summary would be that the concentrations of the russian military close to the border with ukraine is being interpreted by many people including president biden downwards who might contradict him. i would take a different view of the concentrations. i would argue based on their a clear statements, over their track record over many years, before president putin was in power, that significance is not to do with an intention to attack ukraine. there are two purposes. the first is to deter an attempt to cause a military solution in

the southeastern corner of ukraine. i will come back to the false flag question which you had president biden showing. the second and more important reason for the concentrations is to grab the attention of the united states and its allies for the purpose of negotiating a new security operative in europe on a treaty basis which has never existed since the end of the cold where -- cold war 30 years ago. not only to get attention, but one of the key russian demands in addition to the expansion of nato further, is toward -- is the withdrawal of permanently based forces in the newly admitted nato members. russia would be able to reciprocate by winding down those concentrations. matt: is that a possibility?

because we are broadcasting from the west, we show maps that only have russia troop locations but if you put nato troop locations on them, that would be unaccompanied close to russia, certainly uncomfortable for president putin. is it possible to pull them back? christopher: in a document called the nato-russia founding act signed in 1997 to coincide with the first decision by nato to enlarge toward russia, it says that nato was committed not to make permanent basis in the newly admitted members of nato. the fig leaf has been maintained , largely was consistence with the german governments. these with the baltic states are still on a rotational basis, not per minute. no one believes that he or since 2014, they have been permanent

and since the russian annexation of crimea. that is one of the statements. people would say that those are tiny deployments compared to russian armed forces close to ukraine's border and that would be a factual statement but a key securities occurred -- a key could -- security concern is the territory of ukraine, vast territory, now it is available to the u.s. military to make whatever military deployments it sees fit either now or at any time in the future. that is the crucial point from the russian point of view. john: just to wrap things up, you wanted to come back to what you characterize as the volkswagen. can you care -- can you clarify that? christopher: an attempt to solve this conflict by military means

might be undertaken not only by a decision of the ukraine government similar to the georgia government, very similar circumstances to try to resolve by military force a very similar problem of the breakaway territory in georgia. but they instead initiated a fake attack, perhaps stage with the connivance of russia which would give russia a pretext to intervene militarily and to resolve this conflict in a definitive way by military means, no doubt absorb those territories into russia or recognize them as members states. who could say whether that would happen? russia, the goal is to negotiate a new procedure in europe and persuade the united states to change its position. if there was a willingness to

negotiate, why would they give up on that strategic goal and bring -- turn the tables over? i do not think that is a rational forecast. all those markets you mentioned, oil, ruble, will begin to take some risk as we see this process unfold. matt: great having you. thank you so much. managing director of emea. more on today's market reaction. you heard us talking about the reaction in russia, ukraine. anna han joins us next. this is bloomberg.

john: this is "bloomberg markets." i just had that conversation around the geopolitical realities, an unsettled market. if you go belong -- beyond that, the interest rate road ahead, and a batch of earnings we have been navigating. let's get more perspective on what is happening. anna han is an equity strategist and joins us now. you have all of these headline stories. if you look at the month of february for the s&p 500, we have come to expect a 1% move either direction every other day. in a volatile environment, how do you navigate? anna: there are two approaches. one, and a volatile environment you can vote risk-averse and head for the hills or you can trim your highest risk stock and take a less extreme approach. we are taking more of the latter

where we are avoiding the high volatility groups whether it is in any sector but we are not necessarily ready to go full defensive mode just yet. matt: what do you need to see to either boost your confidence or knock it down? anna: let's start with the negatives. to knock it down it would be something on the geopolitical front on some extreme case or it would be some indicator economically that we are aggressively moving very late into the cycle. gdp growth and earnings growth is aggressively rolling over, declining. that is the situation where we look more towards low volatility groups. give it a few more weeks. we are taking a 3-6-month outlook. if we do not see the ukraine situation improve, we will take another look. for now, we may long on

cyclicality. john: as we have gone through this choppy earnings season, bigger is better for you when it comes to profit margins. what have you been looking for? what represents a standout stock or the description of a standout stock? anna: when we say bigger is better, we are talking companies that can flex their size muscles when it comes to the supply chain. for smaller companies, they can have a harder time offsetting supply chain issues, higher input costs, wage increases. the bigger companies, they have more wiggle room and more sway. when it comes to offsetting costs, these bigger companies, especially the bigger market cap companies, have been able to maintain margins. a lot of the smaller folks are having a harder time and that is giving us a key indicator that

perhaps margins are peaking and are going to slow down soon. matt: what are your earnings expectations going forward for the s&p 500? anna: we still think that year-over-year we will see growth for s&p 500 in 2022. we think it will be slower than last year, especially out of a different base. we are going to see quarters slowing down. we already saw q3 slowdown sequentially. q4 we are expecting up a bit. as we progress, it is natural as we take the monetary accommodation away and the fiscal stimulus away that earnings can slowdown. matt: thanks for joining us. anna han, equity strategist at wells fargo. it is time for our stock of the hour. doordash is off of daily peaks but q4 earnings have shares higher on a record number of deliveries and it is a down day. kriti gupta joins us.

kriti: a record number of deliveries is powering the stock. 369 million. this is up 35% from the period before. really important to keep in mind that doordash has 50% of u.s. delivery sales and that is something that has built upon not just groceries and restaurants, but convenience store items, on their path to becoming a logistics diet relative to the ipo performance. the last couple of months, falling victim to that tech blowout, but it is there earnings growth and revenue growth in the future powering the stock today. matt: thanks very much. from new york, i am matt miller with jon erlichman and this is bloomberg.

john: the police service sending to thank the names of people involved in protests that have paralyzed iowa. this is a first step in the crackdown on demonstrators. kevin has been following the financial side of this story and he joins us. nice day have you with us. think about the political risks of freezing accounts. this is a very tricky area that we have waited into. the governor feeling -- government feeling they had to take action. what have we been learning over the last couple of days? kevin: the main action that has happened recently is the crackdown has begun in earnest. as you mentioned, the world canadian police shared the names of the banks involved in the protest, people whose accounts that law enforcement wants frozen and we have seen reports

that this is about a list of two dozen names of people that the government wants to freeze their accounts to try to get them out of these protests. we know that earlier today the banks were talking with the law enforcement about exactly how to go about this, what kind of freeze on the account and which accounts to freeze but not long ago a finance minister at a press conference said that some account have already been frozen. she would not provide numbers or the value of the accounts frozen, but she says they have been frozen and there will be more information coming on that. on the nonfinancial front, we reported that ottawa police have begun erecting barriers around the downtown court to clear out some of the fiscal -- that has been built up for these protests. it is fair to say over the last 24 hours we have seen a big escalation on the government side of cracking down on the protest. matt: is it fair to say by

monday we see business as usual in downtown ottawa? kevin: that is hard to tell. protesters have been down there for more than 20 days. the government has tried various means to get them out of there. they have not budged yet. this is very early on after the invocation of these emergency orders and this gives the government and law enforcement a lot of new power to clear those out so we will have to see in the days ahead how much of a difference this makes, how doug in those processors are and how serious the government is about clearing them out. john: i know you are still working on the details and i do not want to make things complicated but when you are talking about the potential to impact what the banks are doing, what investment dealers are doing, loan companies, is this connected at the same time? do we have a sense that if there is one action taken that everybody in the food chain also is taking action simultaneously? kevin: it is difficult to tell.

when the rules were published yesterday, it showed a broader swath of the financial industry being involved than was expected. they suspended down to investment dealers, portfolio -- just extended down to investment dealers, portfolio managers, if they had some sort of financial relationship with the people. i talked to one investment advisor who says he does not expect it to get down to his level. he is not sure how that would work on his end. he expects this would start and end with the banks but it remains to be seen how long this takes to clear these out, if freezing bank accounts does not work, do they need to move to a next step. there are a lot of questions on this. matt: i would think the elks lodge is called the moose lodge in canada. thank you so much. kevin orland talking to us about the protests in ottawa as they hopefully ramp down and the effect that they have had.

speaking of ramping down, we are looking at markets right now that are off and it is the second day in a row. on tuesday we had gains on the back of a report that russia was pulling troops back to base. now we have the biden administration saying that the possibility of an attack is high and a false flag operation is likely as well. you have risk assets selling off. the only difference between now and yesterday is you do not have a gain in oil. we have crews coming down. john: we had a good conversation with christopher earlier and his view is the goal of russia is to make the u.s. and allies feel less secure. matt: i am matt miller. this is bloomberg.

>> the most crucial moments in the trading day, this is "bloomberg markets: the close,"

with caroline hyde, romaine bostick, and taylor riggs. caroline: 2:00 p.m.in new york, 7:00 in london. i am caroline hyde. romaine: i am romaine bostick. taylor: i am taylor riggs. caroline: investors are back on edge. the latest eco-data with romaine and taylor is on the haven trade. we have you covered. ev efforts are being revved up in the u.s. by nissan, with two new battery electric models come alive in mississippi. order up because restaurants are facing the heat made omicron with labor shortages and rising food costs. the perspective from the red lobster ceo as she leads the