with russia central bank stub similar downs were placed on the russian national wealth fund and the ministry of finance. president vladimir putin has banned all russian residents from transferring foreign currency abroad including for foreign debt as part of the package up retaliatory measures where u.s. and european sanctions are in place. canada's largest television providers are removing the broadcast russia today from their services after one of justin trudeau's minister said it was against the state and russian broadcasters presence on the nations airwaves. one of the canadian providers said it had edit a ukrainian channel for free. derek jeter has announced his departure for major league baseball's miami marlins. he has been serving as the team ceo since september of 2017. in a statement, he said the team's vision for the future of

the franchise is different than the one i signed up to lead. miami went to-18-37 at the helm. global news, 24 hours a day and i'm bloombergquint they come up powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ matt: good afternoon from new york. welcome to bloomberg markets.here are the top stories -- the s&p 500 has resumed losses and been swinging back and forth today. bonds are climbing as traders weigh the latest development on the situation in ukraine and we

will dig into the big move we are seeing in global markets. plus, we will get inside and how russia's invasion of you rain is affecting the credit market. we will talk with the deputy cio of credit at apollo. shell says it in ken's -- it intends to enter gas ventures, adding to the chaos in commodities as a result of the war in ukraine. let's take it check of what's going on in markets. the s&p 500 resuming losses. about an hour ago, we swung up to gains on the s&p 500. the 10 year yield is down to 186 .40 six. investors are piling into treasuries and buying up bloomberg dollar index. nymex crude is up 5%. we see brent crude over $100 per

barrel. looking at the other assets in reaction to the russian invasion of the war in ukraine, you can see the ruble rate, the official rate, 103 rubles to one dollar. that's what you will pay if you are in russia, more like 170 rubles to buy one u.s. dollar. russia shares are down 24%. gazprom is down 36%. the airlines index is down 3%. russian airlines from private to commercial to freighters are locked out of european and u.s. airspace. let's bring in the rbc capital markets management, thanks for

joining us. let me ask what you make of the action we are seeing in equities today. we had an up week last week, up over 2% friday and today we swung for gains, why? >> thanks for having me. it's a great question. this market acts like it is in wait and see mode in this market acts like it wants to find the floor but hasn't been able to get there yet. one of the reasons why is that sentiment has been awful. if you look at the aaii survey, we are below what we saw in the pandemic and that was the reading we got last week. it's typically what you see is that markets rally strongly on a 12 month forward basis after you get to where the bears outnumber the bulls by 10% or more. we are in excess of that now. it's hard to say that this whole crisis is priced in.

there is still a lot we don't know about this crisis but we know that something pretty bad is of foot in that general angst is in the market already. matt: i saw a note this morning that was put out yesterday that said we are going to see more volatility this week and in any year since 1945. is it that serious? >> i think it's a very difficult crisis in that many things that have been is the unthinkable are turning out to be put on the table. i think the linkages with the economy and with corporate america have been very opaque. i think wall street is in the process of connecting the dots. there are new realizations coming out every day about the economic and corporate impact and i think that will generate volatility. i hope it's not too much but i

think wall street understands that it's developing quickly and that is going to generate additional volatility. matt: what does the playbook look like? typically, you would expect people to buy the swiss and the yen but it hasn't seemed like it's happening. they are buying the dollar, they are buying gold and they are buying treasuries. >> our currency strategists has been talking about the dollar rally. i think that's one that seems kind of obvious but it has some read through's on u.s. equity markets. we typically see that when you have dollar strength on a year-over-year basis and a poses another problem for profitability in the usa's. -- in the u.s. i think that's an important one to watch. it's been interesting to watch some of the sector action. this market is one where people

would want to go defensive but some of the defensive sectors like consumer staples are in the crosshairs of the different challenges especially on the commodity prices and european exposure front. it's been interesting last week that some people were trying to buy consumer staples and that seemed like the last place you want to go and the market is starting to figure that out stop matt: thank you for joining us. there is a lot going on, obviously so we can do this for an hour and still have things to talk about. coming up, we will get insight on how the russian and brazen of ukraine can affect credit markets. we will talk with john zito from credit at apollo which has a rating of $100 billion per year and origination.

speaking of credit, something that caught my eye today is the cost of insuring russia's government debt which soared after global sanctions were placed on the country. there have been emergency measures to heal their financial sector and we will have a check on the state of credit next. this is russian credit default swaps and what bondholders pay or by as insurance against a default and you can see here that it gone up like a hockey stick. the cost is soaring to almost 1000 bases points from an average over the last four or five years of under 100. it's incredibly expensive now to ensure russian debt and that's what you would expect in a wartime like this. more talking credit next. this is bloomberg. ♪

matt: this is bloomberg markets. i want to focus on the credit markets. we just showed you how expensive it has become to ensure russian debt and you might expect that after the invasion of ukraine. jp morgan is hosting its global high yield leveraged finance conference in miami. ed hammond is there as well as john zito from credit at apollo, overseeing 350 billion dollars in assets under management step

thank you so much for joining us. wouldn't this conference -- this conference is focused on war which is unusual but it's reverberating around the world so what does it mean for your business? >> how are you doing? i want to thank jp morgan for having this conference every year. it's a time for everybody to get together and it's the first time we've gotten together since covid stop there is 1200 people here so it's nice to see everybody. the times are much different than usual, the environment, i haven't seen something like this in quite a while. it's shocking to see how the markets have responded to such a large geopolitical event. the cds on russia has gone up very ugly. you have bonds between 50 and 70

points across russian sovereign, ukraine sovereign, russian corporate's. when you typically have that event, interest rates go down precipitously and credit spreads go wider. you really haven't seen that of all. parts of the market are struggling. the primary and high-yield market, you haven't seen any new issues coming to market but the secondary market in equity and debt are stable. that's the talk of the conference is how limited it is despite such great moves across border. ed: it seems a callous question to ask but it's a conference about opportunity. with the kind of volatility we are seeing, what kind of opportunities are presenting themselves? >> the uncertainty is going up.

we are definitely preparing for putting her balance sheet to work. we have 90% of our balance sheet permanent so compared to most fund structures, follow was set up as a restart at services business and we have capital that is sticky and we have been lenders to a lot of these companies for several decades. the m&a environment will pick up. i don't think this. m&a. equity via till -- volatility is still high so you're getting decent value and those businesses will need financing. if opportunity comes out of the russian crisis, there may be some capex opportunity to get market share that they need financing or so we are ready. we are talking to her management team and talk with the cfos of companies over the next couple of days to talk about where they need capital and where is the potential opportunity to provide capital.

right now it's pretty quiet and pretty tough to get appropriate cost of funding will stop matt: i wonder where you see exposure. i agree the stability has been pretty impressive even with the volatility in equity markets. we haven't seen cratering or any kind of capitulation or loss of confidence. where do you see exposure to the russia-ukraine conflict in the credit market? >> most em participants have some sort of sovereign risk. there is some exposure. you couple that with what's happening in china. the higher risk parts of theem markets have struggled at least mark to market losses over the last couple of months. you saw the aviation sector

where they have elements of exposure to russia. you will start to see more stories as this progresses with secured collateral sitting in russia and what happens with that collateral and how do you get it back if you are a lender to those assets. the longer this goes, the more it will hit the overall markets. it's unlikely you have this sustained outcome and not have volatility in the markets particularly with what's going on with central banks raising rates and potentially raising rates into a tough economic environment. we really haven't seen this since the gf see. - gfc we had some volatility before this in the edit markets. they're down the most they have been in 40 years so there's already been volatility stop i think most people are surprised how resilient been in the first couple of days. ed: it was already bad.

volatility is causing problems in the market. where are people finding their credit? >> they are just holding off. a couple of deals got pulled to see a better market environment step my suspicion is you will start to see some financing aspect come to market whether it's a spin out or m&a transaction that has to be played and that's where you will test the waters on the depth of the market for new financing. for now, with the fed raising the cost of capital, that will impact capex spending and lots of's that will reverberate into the market that we won't see for a couple of quarters but there is a multiplier on what's going on. as the fed tightens, it will be

interesting to see what happens. matt: i wonder how much the fed can do that or what are your expectations? you talked about the fact we are seeing things we haven't seen since the great financial rises and credit suisse strategist was talking about the note he put out yesterday comparing this to a lehman brothers moment or march of 2020 moment. will we be able to see the fed continue? will we get confidence back? will we get that kind of m& activity again this year? a>> we are in a regime shift right now. the central banks have not been's position since the financial crisis. the structural all has gone up significantly. we are seeing more intraday volatility this year than in the last decade. we are in a regime shift in the fed has gotten themselves into a

corner to fight inflation. the markets are telling you that will be 6-8 rate hikes. they went from 50% rate hikes in march and then a 25 basis point move. i suspect they will have to go slower. if the inflation data persists, it will be hard for them absent the market moving significantly lower and thus far we haven't seen that. ed: will the fed's current plan be enough to get inflation under control given what's happening in russia? >> i think the combination of geopolitical plus demand destruction if you have permanent volatility, you see

nasdaq stocks between 50%-70% on average and that will put crypto down by half stop there is a we'll -- there is a real wealth effect going on in that will ultimately provide more deflationary pressures in the back half of the year, i suspect. i think the supply chain will he's over the next 12 months. the big question is commodities and you are seeing it others oil or gas, the entire metal structure, everything is down significantly and that will be hard in both corporate earnings and for the fed to look through that. the fed put is probably lower than it could be but it's there. it will take more than it used to. matt: really appreciate your time. they are talking to us from the

jp morgan high leverage concert -- conference. we will have an axis of interview from the jp morgan conference, jamie dimon coming up in the next hour. that's when you don't want to miss. this is bloomberg. ♪

matt: this is bloomberg markets. today we take a look at an army of pandemic here retail investors who are powering a boom in leveraged etf's. they just want to get their margin bets. joining us to discuss the possible dangers to this trade, we welcome our etf analyst.

we have seen other stages like this over the past decade and etf's, the growth has been tremendous. i've been up once of conferences and it's awesome to see this industry x load. this is another level? >> you got vanguard and then you got triple leverage with gold miners. they've got everything from g rated movies to rated r and that's the metaphor. these are like rated r movies and they should be used by people who know what they're getting into step if you trade these, they're fine stuff they give you two free trades when you use them. matt: losses as well as gains? >> right now, people want juice. the market has been on fire since march of last year stop

people want things faster and i think this is a long bear market and people will just go away. i think they will learn the hard way not to mess with these. it volatility resets a different prices and they don't get three times earnings, things like these work in the short term. matt: are they still doing it as much? i haven't looked at's of subscriber numbers but when it was booming, when we were talking about gaining on stocks every day and joe the plumber more about options than we do all of a sudden, is it still that hot? >> it's not quite as hot stuff we look at the total of etf volume. they peaked right around the amc time at about 8% and have now come back down to 12% so it's

back to normal in a way. assets are up because they let more people use them but that percentage is what we look to in terms of how much retail is using them. i think the recent market has probably scared a couple of them away because it's down a little bit but the assets are up. the assets in these are only 1% of all assets. they are not a big deal in the scheme of things. matt: we have in some ways had a shift where retail investors have just learned to educate themselves better and will be more involved in the markets from here on out stop we will talk more about this, thank you for being with us. coming up, we will speak to the associate fellow at chatham house. this is bloomberg. ♪

matt: this is first word news. mark: with the war in ukraine it's for day, officials in kyiv

say the first round of talks with russia has concluded and more talks could happen soon. a russian official is also saying an additional round of talks might occur in the coming days. russia has been bombarding the second largest city in ukraine but moscow's advance into the capital city reportedly appears to be slowing. the european union has agreed to send $500 million worth of military equipment to ukraine is the first on the block has supplied arms to a country at war. switzerland has joined the eu sanctions that are targeting russia including ones imposed against president putin and foreign minister sergey lavrov stuff the country which is traditionally neutral has hesitated whether to join the international moves to sanction

moscow for the invasion. the announcement came as russia said lavrov had canceled his trip to the geneva-based united nations human rights council. the price of oil soared from more sanctions. brent futures jumped more than 7% before pulling back slightly. russia is the world's third-largest oil producer. any disruption to the flows could exacerbate the tightness in the market. global news, 24 hours a day, on air and on bloomberg quick take, powered by more than 2700 journalists in over 120 countries. i am mark crumpton, this is bloomberg. ♪

john: welcome to bloomberg markets. matt: these are the top stories from around the world. president putin announced counter sanctions with countries around the world piling up penalties against russia after its invention -- invasion of ukraine. shell plans to exit its joint ventures with gazprom and other related russian entities adding to chaos and commodities as a result of the war in ukraine. bitcoin jumped, rebounding from a selloff over the weekend amid speculation that cryptocurrencies will be in favor in the wake of sanctions against russia and that might be a place where to put your wealth if you can't by dollars, pounds or euros. john: everybody is trying to make that determination of the safe it spots for your money now. as we look at the intraday trading of the major averages north america, we see red on the screen and there have been

moments when we were under more pressure. there doesn't seem to be much of an appetite for anything outside some of the energy names fueled by the continued rise in the price of oil. we will have to try to figure out the road from here and markets certainly have most of their attention on an uncertain situation surrounding ukraine and russia. you made that point about the situation around shell exiting its joint venture in russia. they were already feeling that pressure. president vladimir putin announced counter sanctions on countries around the world and piling up penalties against russia and the ukrainian delegation agreed to more talks after reading with mark -- after meeting with russian officials. we try to take all of that inputted in context. you try to make sense of what

that means for companies that have to navigate through that. already a complicated supply chain that we've been talking about for the last couple of years and putting that together so it's hard to know hence the continued uncertainty in global markets. matt: it is fascinating to say the least. the counter sanctions are meant to prevent russians from selling their rubles into fx markets or transferring their assets outside the u.s.. we've seen the incredible ruble volatility. you look at the published numbers and i really don't think they tell the full story. this chart shows the price, the bottom of the screen shows the volatility. the price officially measured is

103 rubles to the dollar but over the weekend, we were hearing people were paying 100 if he rubles for a dollar and today, we are hearing $161. it's really an absolute collapse. john: obviously, the road from here is one we are watching closely. let's bring in samantha bender, an associate fellow for the russia-eurasia program at chatham house. nice to have you with us. i know you have been preparing for more to watch in the days ahead stuff how do you view the current situation and what will you be watching for in the hours ahead? >> i will be watching to the russian response to this. the talks ended without any conclusive decision and the ukrainians have called for a cease-fire and have made a bid

to join the european union. russia says they will communicate their reaction to the discussion at some date. but we are getting is massive destruction and it's happening in eastern ukraine slightly north of the terror tories in the dunbas. there are massive human rights abuses with hospitals and schools being bombed and civilians being killed in the streets. what we are also getting his reports of russian soldiers being made prisoners of wars by the ukrainians. they don't seem to know where they are. some of them thought they were going on an exercise in this is typical soviet tactics. send your people to war and don't tell them they're going to war. this is a war crime that russia

is perpetrating not only on the ukrainians but its own people. matt: in finance, european gas and oil purchases, how can that be justified? how can germany, italy and other european countries feel it's all right to be paying putin for its product? >> this is where the european union is in a conundrum stuff they depend on russia for about 40% of gas and more of its oil. as gas prices go up, the increase in active fueling putin's war machine. you cannot switch and 24 hours. some countries have promised to come in with solutions qatar and the united states but this takes a long time step there are other

issues as well like food insecurity. we have all the rare-earth and rare metal industry to build computer chips and to build anything from machines to the car industry. matt: over the last six years i was in berlin and spoke about -- to the u.s. energy secretary. he said he was there to try to convince the government to buy more lng from the u.s. so they were not so reliant on russian energy. we talked about the since the annexation of crimea. it shouldn't be a surprise so why is this ok? >> in 2009, ukraine started like mailing europe by touching off

gas supplies going through ukraine. they increase their reliance on russian gas. one thing that's important to understand is whether we are talking about the united kingdom or the european union, we have political elite who have close connections to the russians to have positions on energy companies. you have the austrian foreign minister was on the board in bosnia. you have the former french candidates and former prime minister who is on the board of two russian energy companies. he resigned two days ago. the conflict regarding russia is incapacitating us. john: we will watch what happens on that front and watch what

happens on the sanctions. in your estimation, with all the moves we have seen, is there any evidence that vladimir putin would be ready to stop at any time? >> i haven't seen any evidence of that yet. this is the most worrying aspect of what is going on. as an independent analyst, i don't know how i can talk about this on air publicly. vladimir putin does not show any evidence of stepping down. he put his force on its highest level of alert. if he sees he is not winning on the apple field with conventional weapons, he has other resources like nuclear weapons which can be used.

the question people in europe are asking themselves is if he feels cornered enough and he feels he is losing, what would he be prepared to do? i think the only solution at this point is if the people who are around vladimir putin try to get him to stop the war or use other means to stop this catastrophe. matt: we've been hearing that if a julius caesar moment is self coming -- is forthcoming, it would be now. thank you for talking to us about the war in ukraine. it's amazing to see these incredibly high-ranking, the man once ran the biggest economy in

europe is now working directly or indirectly for vladimir putin. coming up, fresh sanctions on the fighting in ukraine sending energy markets in a while ride . more on the outlook for commodities ahead stuff this is bloomberg. ♪

matt: this is bloomberg markets. time for our stock of the hour. we are looking at russian businesses, feeling the effect of global sanctions. spare bank is high among them. kriti: you are starting to see a

lot of these russian companies tank. the russian stock exchange is closed today. the etf's in particular are seeing a lot of funds exiting. these are the vehicles essentially shorting the russian market and are now going all out. there is a 50% drop not just in the stock market but in the bond marks well.in 2008, he had the l financial crisis and the war with georgia at the time. that's how severe these sanctions are impacting russia. john: we have sliced and dries -- and dice the market so dramatically that the question of what kind of exposure i have

is an investor is something many people have been asking. just looking in the etf world. they have conversations about exposure and what that means and many people are trying to connect the dots in the market now. kriti: a lot of s&p 500 companies do have a lot of exposure. a couple of years ago, a lot of emerging market companies wanted that exposure. they wanted the beer marketed the leading chocolate maker is there. once again, a lot of these s&p 500 companies are not only exposed to russia but feeling the pain of the fallout. john: that's the latest on what's happening in the stock market with russian commodities.

that's tied to the war in ukraine. let's bring in a reporter that's been tracking all the twists and turns. you hear about these developments and you think about what feels like a logistical turmoil that we see within the mechanics of making the industry run. what have you been watching? >> there is a lot of logistical turmoil, a lot of companies are looking to shy away from anything that is russian soap russian commodities to logistics like tankers that are owned by russian companies. we've been hearing from their own sources that people are trying to keep away. you so the report today about the u.k. asking that russians should not be allowed to dock in their ports. the issue is also going on with oil. plenty of oil, people are

looking for septa tooth for russian oil. this is all impacting the way flows are happening across the energy spectrum. matt: jonathan ferro treat -- tweeted out a chart showing russian and oil and gas sales are much higher than they typically are. people are worried about sanctions. are there companies that aren't willing to do business with russian oil producers even though the sanctions are not there yet? are there shippers that are saying we can't get it to you or it will cost you five times as much? >> all of that and a lot more. right from the companies that need to buy oil, they have started to report over the next couple of weeks. even before the sanctions, the

use this as a precaution. you don't want to bring all your oil to the u.s., for example. you cannot all the way in because of the sanctions. that's one aspect of it and then you have these banks that may have already started to put a stop on financing these deals and then you have the oil asset companies like tanker operators. they don't want to deal with that as well. it's a turmoil. matt: it also shows the complications. i saw a report that the eu would pay 50 million to get ukrainian fuel. they will finance the russian were operation but buying the gas and give it to the ukrainians so they can run their defensive operations? >> that's right, it can be complicated.

people are trying to help the ukrainians and do the right thing but it might be what the russian war is about right now. matt: thank you for joining us. we will continue to bring you all of the market action and it has been all over the place today from losses to gains in now to losses yen. this is blue berg. -- this is bloomberg. ♪

john: this is bloomberg markets. there is speculation that cryptocurrencies will gain favor in the wake of sanctions against russia and bloomberg reported the biden administration asking crypto exchanges to help ensure that russian individuals and organizations are not using virtual currencies to avoid

sanctions. let's bring in katie greifeld. do we know if this is speculators bidding up the price on the possibility for are we seeing strong evidence of being able to navigate away from sanctions by using cryptocurrencies? >> it's hard to say. i will say that if you look at trading volumes and bit coin in rubles, that's at the highest level since may so people in russia are trading cryptocurrencies. it could be just a case of speculators think that trip that will be used to circumvent these sanctions. that's why you are seeing such a big reaction. matt: they are kind of two different stories. on the one hand, we are talking about the possibility that russians are trying to get wealth out of rubles or out of the country by buying bitcoin.

i would guess they would hold that until the war is over or until they can get out stop on the other hand, we are talking about funding activities with the sale of cryptocurrencies and that's what the biden administration wants to stop. it feels like that should be difficult to begin with. even if i sell you bitcoin on coinbase, i still need to get that into cash before i can buy stinger missiles. i can't use cryptocurrency to buy them but if i did, you could track my wallet. >> that is what the biden administration is trying to prevent. as we know, the u.s. government has had a difficult time deciding how to regulate cryptocurrency so we will see if this most recent effort gets there stop we have reports of the biden administration is asking crypto exchanges to make sure they are not using them all

stop it's not clear what they will do but clearly, it's on top of mind. john: a lot to watch their. also a kind of response we see from the crypto exchange players as well. they've been spending a lot of time in washington for their case. we are watching how they navigate through this. thank you for the latest on what's happening in the market and we will have continuing coverage of what's happening. this is bloomberg. ♪

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announcer: the most crucial moments in the trading day. this is "bloomberg markets: the close" with caroline hyde,

romaine bostick and taylor riggs. ♪ caroline: it is 2:00 in new york, 7:00 in london and we are live from world headquarters. i'm caroline hyde. romaine: i am romaine bostick. taylor: i am taylor riggs. caroline: russian sanctions causing stocks to drop. a human tragedy with global impact from the political to the economic. taylor is on treasury yields, i am on crypto, and we have you covered. the sweeping sanctions shake russia's financial system and ripple worldwide. the bank of russia acting quickly to shield the nation's economy, doubling key interest rates and adding capital control. we analyze the stress in global markets. would bring you reactions from wall street and washington. jp morgan ceo jamie dimon joining us next for an iv