>> we are counting down to asia's major market open. >> our top stories this hour, asian stocks set for a cautious start as fighting continues in ukraine. investors turning to traditional havens. markets in chaos over russia with key sales frozen, raw materials financing drying up.

sanctions expand on moscow with central bank agencies and tycoons in the firing line. haidi: the data continues to come in when it comes to australian home prices. the number for the month on month gain coming in at .3%, slightly softer than the prior gain of .8%. january gains were strong and started the reversal of the cooling we have seen in the property market across australia. we have to dig in deeper, but we have been seeing strong increases in small capital in regional areas and a flattening out in other areas. capital city house prices remaining strong. this comes on rba decision day. the central bank is expected to keep rates at a steady legible of .1%, a record low given we have heard the governor citing the reason being tepid wages.

now these added complications on the geopolitical front. taking a look at trading on the staggered open in sydney, we are looking on track for a third straight day of gains when it comes to equities. watching commodities, agricultural stocks given we see amplified inflation risk. this after u.s. stocks erased almost all losses with another volatile session amid new sanctions and developments in the russia-ukraine conflict. holding steady is the 10 year yield. we did see treasury yields following with the dollar trimming some gains. we saw a pretty hefty gains with the performance of the aussie dollar on the back of these commodities led gains. taking a look ahead to the start of trading in tokyo, nikkei futures mildly positive at this point. shery: take a look at the future space.

u.s. futures not doing much. a mixed picture during the wall street-new york session. tech stocks staging a late session come back, but the s&p 500 did not reverse those losses. right now futures not doing much. we had a similar picture when treasuries jumped and the 10 year yield fell to 180. we are seeing crude extending gains from the new york session. it had risen above that level for wti in new york, but it did pare back earlier gains given we had also heard the u.s. and allies were considering releasing 60 million barrels of crude from emergency stockpiles. bitcoin, take a look at the rally. the best since may since we continue to see speculation cryptocurrencies will gain favor in the wake of sanctions against russia. the biden crypto exchanges to

ensure russian individuals and organizations are not using cryptocurrency to avoid sanctions. heavy fighting in ukraine's capital and other key urban centers is overshadowing diplomatic efforts for a cease fire, la vladimir putin is hitting back on u.s. and european sanctions with a package of retaliatory measures. let's bring in jodi schneider, kathleen hays, and are cheap asia correspondent. we have seen president putin coming out with his own response. >> countermeasures is the word of the day from russia. they are doubling down against the wall of sanctions that countries in the eu and the u.s. and canada have been imposing.

they are banning residents from transferring foreign currency, trying to make it clear they are not going to give in to sanctions and try to hurt the countries imposing sanctions. >> the country enacting its own financial defenses in the wake of sections. >> this is what war is like, on the battlefield or financial markets. first penalties against the russian oligarchs, banks. the next thing, swift messaging

system is limited for russian businessmen. they use signaling they are ready put direct curbs on the. they need resources to help their companies getting hit. the key rate was 9.5%, now 20% as the ruble is tumbling. financial conditions have drastically changed. putin is banning russians from transferring rubles abroad. they want to keep as much money in the economy as they can't.

-- can. there are many different banks around the world. they are banning u.s. citizens, companies from doing financial transactions with the bank of russia. they said these will immobilize bank of russia assets in the u.s. they are also putting penalties on russia's direct investment fund and its ceo. janet yellen saying these steps will limit russian's ability to finance destabilizing activities and continue its advance into ukraine. it is clear these are big penalties, getting bigger all the time. it is a hurting the financial

system. >> there is focus on whether china will be throwing a lifeline to russia. how does the pboc play in? >> their are three channels. they hold around $77 billion u.s. of russia he observed. -- russia reserves. the second option is they have a swap line between the pboc at the russian central bank that could become a source of currency for russia. there is the alternative payment system, china's homegrown rival to swift. we don't know how that will play out because we don't know what the pboc will do or how china will play the conflict. we have communications that chinese state banks are adhering to global sanctions against

russia. much will depend on how china does respond to russia. on paper, there is a source of liquidity in beijing if russia don't need it -- does need it. >> jodi schneider, kathleen hays, and our chief asia economics correspondent there with the roundup. let's get you to the first word headlines. vonnie: the european union is preparing for the destruction of natural gas supplies in russia. eu ministers discussed various supply shock scenarios. the european commission is due to produce a strategy next week to cut reliance on russia supplies, which meet a third of eurozone energy needs. the eu has adopted sanctions on russia tycoons.

look. the handful of billionaires who have not been hit by sanctions in the u.s., including a metals tycoon, the owners of alpha group, and the controller of a major steel company. the eu is working on further measures to penalize more oligarchs. jamie dimon says there are ways around sanctions involving the slip messaging system after the u.s. and allies shot a group of russian lenders out of the network. he explains disconnecting the banks could bring unintended consequences, including third parties finding loopholes. j.p. morgan counseled washington against kicking russia off swift. >> sanctions so you can't do business with you. swift says you can't use communication to do business with you. there are a lot of workarounds. vonnie: the u.s. has raised its

travel advisory alert for hong kong by two levels. the cdc says there is a high level of virus and advises travelers to be fully vaccinated. china is being forced to move away from the covid zero strategy as cases overwhelm the health care system. nearly 35,000 new cases were confirmed on monday. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. shery: i had, prestige economics will give us its outlook for commodities. the market chaos unleashed by the war with ukraine looks to last. we will discuss how the rising energy cost could impact hong kong's biggest electricity supplier. richard lancaster joins us -- richard lancaster joins us later. ♪

>> tuesday, march 1, bloomberg brings live coverage of the state of the union address hosted by joe mathieu. >> inflation is the number one talking point. >> reaction, analysis, and what it means for wall street. >> those are the words democrats wanted to hear. >> the state of the union address followed by the republican response. coverage begins tuesday night at 8:30 eastern. >> the energy trade is going to be disrupted. >> this is an enormous amount of oil that has the potential to be disrupted. >> the deficit is -- >> it really didn't make a huge impact over the long haul.

>> i think you are going to see a sanction on russian energy just by the behavior of market actors. >> this is an amount world can afford to lose. >> some guests weighing in on the impact to oil with russia's war with ukraine. we are seeing wti paring back earlier gains. we have seen the new york session gaining ground, but paring back a little. according to bloomberg sources telling us they may be tapping on emergency stockpiles, goldman sachs believes we could see commodity supply shops continue. they have raised the one-month the brent outlook to $115 per barrel. gold futures around the 13 month high, aluminum also higher.

one company having to halt a shipment of raw materials from a plant in ukraine. nickel rallied above the $25,000 level but right now under a little pressure. haidi: let's get more insights into the extraordinary turmoil in the commodities markets. bloomberg's most accurate forecast across metals and energy prices. jason schenker joins us now. you are well praised for join us -- well-placed to join us. take us through the enormous amount of dislocation still potentially to be played out. how are you viewing this? >> the big situation is, what's the backdrop to all those things ? we already have high metals prices for oil. we have seen inventories fall

rapidly. demand is coming back as covid cases receipt. in the united states, we are ramping up for the summer driving season, the biggest seasonal source of oil demand in the world. all the demand signals for metals, for oil, they are all on the upside. this can constrict supply and have other impacts that further threatened to keep prices elevated or send them higher. haidi: does this really threaten the risk of a messy landing when it comes to authorities and central-bank policy makers trying to navigate out of a complicated post-pandemic situation? >> absolutely. there is three different ways to think about it. what's the situation on russia?

yesterday evening with the collapse of the ruble, there is a chance we could see something that looks like hyperinflation. even though the central banks raise rates a lot, that might not be enough to keep the ruble from getting pummeled further. in the euro zone, there are downside risks to the economy but upside risks. that means there is a stagflation risk in the euro zone. even if they don't tighten rates, we could see growth slow and energy prices rise. the united states is more isolated because of the geographic distance. we have growth elation coming on right now. a strong jobs number on friday, a strong economy last year, strongest growth for the year since 1984. even though we have the strongest cpi year-on-year since february 1982, behind inflation

is a function of strong growth. shery: we have seen a rally in some currencies like the u.s. dollar or japanese yen. where are we headed? >> i think the dollar is going to remain a flight to liquidity, not so much quality. if we see those stagflation risks in europe, that is one thing where the euro will likely go lower, the dollar go higher, especially in the next quarter. the ruble could remain under pressure as long as this goes on. there is a lot of economic force being brought to bear by nato countries, by other countries outside nato trying to pressure russia to come back to the negotiating table and start the war. shery: you were calling the russian ruble looking like the russian rubble. how big will the pain be for russia? >> when these things start, it

can get hit even harder going forward, especially in the short term. we think about being disconnected from the banking system. what does russia have? i guess you are going to be trading, barter with ingot of aluminum and oil and gas, provided you are allowed to sell those. right now sanctions on oil and gas have been held back. that could, if this continues to get worse if they take out more of what they were doing. you could see more pressure and russia getting cut off as well. haidi: if energy is on the table as being a sanctions target, where do you see oil prices going from here? >> in the short-term, oil prices going quite a bit higher. natural gas prices in europe

could go up significantly. that's important because we think about when up the big areas where europe has been pushing is in climate change, green energy, sustainability. a lot of that has been dependent on russian natural gas. when you burn russian natural gas, there is a 50% reduction in co2. without that there is. a problem. countries are dependent on natural gas not just to get through the winter but also for power. shery: ukraine nicknamed the breadbasket of europe. where do you see the biggest impact in the commodities space? >> this time of year there is not much harvesting going on so right now that is not necessarily as critical. if we see this conflict last for weeks or months, that could affect harvest later in the year, could affect flows of grain commodities.

there is not a lot of downside risk for commodities unless everyone comes back to the table and we can find some peaceful resolution. the longer it continues, the more those upside risks mount. haidi: always good catching up with you. get a roundup of the stories you need to know in today's edition of daybreak bloomberg raisi bloomberg subscribers go to daybreak go on your terminal. also available on mobile and the bloomberg anywhere app. you can customize your settings so you only get news on the industries and assets you care about. this is bloomberg. ♪

shery: jamie dimon says market volatility is inevitable.

he spoke to bloomberg about his outlook. >> it's really good to step back two years ago. we were here two years ago. we had 15% unemployment and no vaccine, so i applaud what the government did get things back. it's very easy to second-guess all that. probably too much fiscal stimulus and quantitative easing, but still a strong economy. i think the fed will try to meet that with strength by raising rates and reversing qe. i wish them the best. >> how many rate raises do you think we should see this year? >> it could be seven or nine, could be more, could be less. can you imagine the fed saying we are not going to be

data-dependent at all? they should be data-dependent. i don't think all inflation is temporary, but i think part of it will get better over time. i don't think they should promise us what they are going to do because they don't know what they are going to do. they need to retain flexibility. >> let's talk about j.p. morgan for a second. the challenges wall street has retaining the best and bright kids. i want to look more broadly about the disparity between people at the tops of the banks and the thousands of workers in large institutions like j.p. morgan. i wonder if you see pressure to increase the minimum wage for people working at the lower rung. >> people stay at a company

because they like their boss, they are paid fairly, they are given opportunity, and we absolutely want to do that. some people leave for good reason. maybe they get an opportunity they are not going to get from me. we want to be top pay, top performance. we have always taken care of our lower pay. we start at $20,000 -- add $20 an hour, which is $44,000 a year , and that is the first ru ng. you could be 18 years old. i didn't make that when i was 18. we all need to become competitive. that's a good thing. ceos complain about wages going up. i think that's a good thing for the people who have the wages going up. the capitalist system sometimes favors one thing over the other. >> will you be raising the minimum wage more? >> possibly.

we have always been very competitive. best pay for best performance, but you have to have the best performance too. shery: jamie dimon speaking with bloomber if you're a small business, there are lots of choices when it comes to your internet and technology needs. but when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose fiber solutions with speeds up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™.

vonnie: the situation in ukraine's capital is being described as difficult and tense by the mayor, with sirens going off every half-hour. the pentagon reports russian forces are inching forward to encircle the city. in the second-biggest city, residential areas are being shelled. the mayor is calling it a war to destroy the ukrainian people. the u.s. has banned citizens and companies from doing business

with the russian business -- russian bank and ministry of finance. the move immobilizes russian central bank assets held in the u.s. or by u.s. nationals. janet yellen says the measures target funds putin is using to invade ukraine. putin has restricted residents from sending hard currency abroad. the ban covers foreign-exchange transfers and is part of putin's retaliatory exchange measures. the russian central bank clarified the move, saying it only covers new loans and not servicing of existing debt. the u.s. and allies are discussing a coordinated release of 60 million barrels of oil from the stockpile. sources say deliberations are currently focused on a discharge of 30 million barrels from the u.s. and an equivalent amount from other countries though a decision has not yet been made.

global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: we are looking at trading in asia. a very swift turnaround when it comes to the u.s. session. most stocks coming off session lows as we gather volatility as a result of sanctions and counter sanctions in the wake of russia's invasion of ukraine. sydney stocks are tracking close to 1% higher. some names performing quite well for a third day of gains in australia. the 10 year yield is in focus as well as strengthen the aussie dollar. some commodity links currencies have staged a comeback. we are not expecting a move when it comes to the cash rate, but looking for more nuanced comments around the state of the

labor market, wage growth, as well as, about how the geopolitical situation will be affecting labor policy going forward. kiwi stocks 1.5% higher. nikkei futures in singapore, a positive start to trading in tokyo. we are watching a few stocks in tokyo. zip falling 10% in the first trade after placement, well off session lows. igo also rising .86. shery: take a look at u.s. futures, up .2%. we had seen a little bit of a mixed session in new york. tech stocks staged a late session come back, but the s&p 500 remains in the red. we continue to watch commodities , especially with gold futures

continuing to rise. we have seen it around a 13 month high. crude prices muted after rising in the 13 month session. the u.s. and allies are considering releasing emergency stockpiles, according to people speaking to bloomberg. we continue to watch the commodity space, given this is inflecting -- infecting the futures. we have seen brazil futures soaring to above 10%. now it is apparently slowing and may end up below that of the u.s. after it pulled monetary and fiscal incentives for the pandemic earlier than others, according to the finance minister who spoke to me about the outlook for inflation in brazil. >> brazil is out of sync with the global economy. the global economy was already in deceleration when covid came

and brazil is in the other direction. the most important thing happening in brazil is the transition from a state driven economy to a market driven economy. we have at the moment 828 billion riau. by the end of the year, we will have $200 million of investment commitments. these are signed contracts of private investments in natural gas, oil, concession on roads, seaports. brazil has two marshall plans. the plan to rebuild europe was about $100 billion. we have two marshall plans to rebuild the economy. brazil is out of sync with the global economy.

shery: with all the spending, well that exacerbate inflation as well? >> that is a different track. this is investment by the private sector for the next 10 years. brazil is probably the only country that paul doubt fiscal incentives during the pandemic. inflation in brazil could be even lower than the u.s. this year. i think brazil will again surprise on the upside. >> you are so optimistic about the growth outlook in brazil, giving new information about private investments as well. why does brazil need another credit program now? >> the credit program is just a renewal of the money that came back. we are not printing money or expanding credit. we took advantage of the bouncing back to remove the

stimulus so there is no fiscal pressure. brazil reduced its fiscal debts from 10% of gdp to zero in one year. we contracted the fiscal policy during the recovery, so there is no inflationary pressure. inflation in brazil went from three to 10, inflation in the u.s. from zero to 7.5. it is global inflation. haidi: brazil's economy minister speaking to shery earlier. we are tracking the fallout of the global supply chain crunch. steel ships in the u.s. have jumped to a seven-year high after russia invaded ukraine, another obstacle for logistics companies battered by bottlenecks and congestion. sanctions threatened to make the market tighter. shell is following bp exiting

russian gas ventures, including a massive facility and ending its partnership with kremlin controlled gazprom. it is also withdrawing from the nord stream to pipeline. the top container carrier will impose more stringent measures for russian cargo, including screening and prepayment. shipping companies are rerouting containers amid the fighting in ukraine and several sanctions placed on russia. shery: taking a look at the impact on soft commodities, with cheap and abundant wheat supplies from russia and ukraine out of access, the world's grain suppliers are being forced to hunt. bloomberg terminal users can read more about those stories in our newsletter.

haidi: coming up next, hong kong electricity supplier posting a four year net income that fell short of expectations. we will be talking through that with the ceo, next. this is bloomberg.

haidi: the world's top climate scientists are warning there is a close a window to prepare for a hotter world. in the report, they say there is a rising mismatch between rising temperatures and slow effort by government to adapt. it says climate related impacts are already widespread and in some cases irreversible. it is morning countries must do more to save people from floods, droughts, and hazards. -- investment for the low-energy search. the electrified transport sector seeing the fastest growth in. the nef estimates the investment must triple in the next few years to get on track for a net zero by 2050. let's bring in the head of aipac research. some good news, more work to do.

which countries are getting the most investment when it comes to the transition? >> china is tracking the most investment. out of that $755 billion, china accounted for roughly half, $368 billion, which is significant. the second country the u.s., about $114 billion, about 15% of the total investment. the rest of the countries are below $100 billion. germany comes out third. if you look at aipac, after china, we have japan, india, korea, and vietnam. india, korea, and vietnam are doing relatively well given the size of their economies, but japan is not investing enough given the size of its economy. shery: our current trends

sufficient to meet the paris agreement goals? >> unfortunately no. if you look at different pathways at a minimum over the next three years, we have to get annual investments over $2 trillion. for the latter part of the decade, we have to be at an annual investment level of $3 trillion. more policy measures are needed to get there. haidi: could europe replace its reliance on russian fossil fuel supplies, particularly if we see energy becoming a sanctions target? >> if you look at where the eu imports fossil fuels from, if you look at pre-pandemic outside the supply chain disruptions caused by the pandemic, eu got about 27% of crude oil from russia, 47% of natural gas from

russia, and 40% of its coal imports from russia. replacing these, one option would be to give up on climate goals the eu has and they could go back to burning more late-night. if the eu wants to keep its climate goals and reduce dependence, it has to accelerate its energy transition investment. to be fair to the eu 55 package, the goal of reducing 55% by 2030, already helps the eu produce some expenses, but you would have to accelerate that and open up discussion around the role of nuclear power, which is nice to see germany seems to be softening at steps against nuclear power and recent days. shery: hong kong electricity provider clp has reported four

year results with that income missing estimates as we see volatility in the commodity space. let's discuss the business, not to mention the impact of this volatility on consumers with clp ceo richard lancaster. tell us about how the volatility in the commodities space is impacting your business and what drove your results. >> 2021 was a challenging year for all sectors, but the volatility in fuel prices did have an impact on us, particularly in the china sector. we saw dramatic increases in coal prices and a shortage of supply as the chinese economy kicked back and recovered from covid, but the coal supply infrastructure wasn't able to meet demand. in australia we also saw an

impact with rising gas prices. we are reaching a point in the cycle in australia where we had a combination of high gas prices and low electricity prices, so that did affect earnings in australia. overall electricity demand has still been growing and the importance of investment in the electricity sector is more urgent than ever to achieve decarbonization. our outlook is a positive one. we see growth here in the core business, but everywhere we operate we see a need for continued investment to help with decarbonization. shery: well the target of exiting coal, i believe 2044 you , be impacted because of the volatility, not only last year but with geopolitical tensions around ukraine affecting prices

even more? >> i would say it is too important an objective for us to drop the ball, even with covid and all the volatility and difficulties with supply chains. this has been a real focus for us and we have capped all of our projects on track. we have had enormous changes to make and the difficulty of getting people and materials to us in hong kong has been incredibly challenging. these are too important for us to lose sight out. these are our top priority, and achieving a d carbonized business and having met a net zero target by 2050 is of absolute importance. if we can find ways of accelerating that transition, we will find those and put those in place.

haidi: what's the impact of inflationary pressures on that transition? not just energy prices, but things like clean energy equipment. >> we have seen inflationary pressure on prices. everything is not only more expensive, but more difficult to get hold of. there are delays bringing materials. this is definitely an issue we have had to manage and has contributed not just to our core job of powering economies, but the projects we are having to work on to help with decarbonization have also been heavily challenged. essentially we are seeing a very important and fundamental transition of the electricity sector as we d carbonized.

new capacity needs to be working reliably in order to close down the emission sources, coal and gas power plants. a huge amount of infrastructure needs to be running efficiently and while before we can take the steps to close down coal mining power stations. that will cause pressure on prices that will naturally see prices increasing. if this can be done in a coordinated way, we can do that without putting on undue pressure and seeing price shocks. if we can't at that right, inevitably we will see price shocks. haidi: we are seeing coal-fired power unprofitable in australia. is that a motivator to sell the energy australia unit? do you think there is overestimation by the government on the longevity of coal? >> coal needs to be phased out

as quickly as possible. you can't just phase coal out without having a replacement electricity supply working reliably. it does need to be done in a coordinated, plantwide. that will mean new infrastructure is needed. there is a case for new investment. that has to be put in place quickly and has to be profitable as well. we believe with energy australia there is a profitable area of investment with energy storage and the fast response capacity you need to support more renewable energy coming onto the system. renewable energy operates when the wind blows and the sun shines, but you need the flexible capacity to make it work when customers needed.

we see opportunities to develop the fast response capacity. for us there is good fundamentals for energy australia. it is a sound business, strong. we are looking to put a lot of investment into the market. at the moment we are a 100% owner, so if we can find good partners to work with, that can speed up the investment and take pressure off our financial resources. shery: talk a little about pressure inside hong kong as well, because you have mentioned covid-19 being one of the uncertainties we have faced. we are hearing mass testing will be conducted with a lockdown. how will that affect the demand picture, not to mention operations as well? >> maintaining operations is of fundamental importance. hong kong is a high-rise city,

very densely populated. the reliability of the electricity supply is crucial to daily lives and to keep the economy running. our main focus has been making sure we have -- we have responsibilities to support the network operations. right from day one with covid, that has been a priority, to make sure operations are secure, that staff are kept safe, and are able to perform their jobs. this may well be the first serious lockdown we have seen in hong kong, so it is something we may be able to learn from the experience of others around the world, but it will be a very challenging period for us. shery: we appreciate your time, richard lancaster, clp ceo

coming to us from hong kong. you can see past interviews on the interactive tv function. you can also dive into any of the functions we talk about and join into the conversation by sending instant messages during our show. this is bloomberg. ♪

haidi: a quick check of the latest business headlines. more details on bp's possible exit from russia. the u.k. oil giant may sell its 20% stake in rise down back to the state controlled crude explorer. we are also told they considered a deal with rosneft because it would struggle to find another buyer. shell is executing its russian gas ventures, including a massive lng facility. awg from the nord stream to pipeline following pressure from the u.k. government. shell says the ventures mounted to $3 billion. citigroup has joined a list of banks being investigated over employees' use of messaging apps such as whatsapp for work. they said it is cooperating with authorities. hsbc is also being scrutinized

by u.s. regulators over staff communication using unauthorized messaging services. shery: these are some of these stocks we are watching in tokyo. we will have the market opened there as south korea is closed on holidays. this is bloomberg.

shery: welcome to "daybreak: asia." i'm shery ahn. haidi: asia's major markets have just open for trade. our top stories this hour, asian stocks are set for cautious start as fighting continues in ukraine. investors turning to traditional havens. the central bank tycoons all in

the firing line. and reports they plan to carry out a mass testing drive. shery: and the latest trade numbers for the month of february, when it comes to exports, growth of 20.6% which is above consensus estimates. bloomberg economists saying it would spike around 18%. also growth from the previous month of january. it imports year on year with growth of 25%, 25 .1%, which is above consensus exports. a little bit of a slow court -- slowdown from the previous month. surplus coming in at 840 million dollars, reversing from expectations for a deficit. take a look at the markets over in japan, south korea remains closed on holiday. we are seeing gains being led higher by real estate and

communication stocks on the nikkei and extending the session higher by a third session. the japanese yen keeps continuing to hold steady at the 115 level, given the dollar and yen both strengthening against other gt and peers, and we're watching the jgb stage as well because we've seen a lot of volatility in japan, we are talking about a one year high over tensions over ukraine. haidi: volatility may be the theme of the day but we are seeing some strong risk on gains in the australian share market as well. tech for example leaving those gains, up by over 4%, financials also really strong. only utilities the slight underperformer in every other sector including energy as well as commodities and materials firmly in the green. we are approaching the rba

decision, no change expected from the reserve bank of australia. the pace of wage gains have been characterized as tepid but also expecting to see some of the commentary around the russian invasion of ukraine and the implications for global growth and inflation. good gains when it comes to commodities and currencies like the aussie dollar as well. the heavy fighting continues in the ukrainian capital of kyiv. let's get the latest from our reporter in hong kong. bruce, what do we know about what is happening right now in ukraine, and we're hearing about the potential for more rounds of these talks. bruce: the first talks ended with both sides returning to their capitals, president zelensky was skeptical that the talks would yield any results. president putin folk with french president macron yesterday and

said he was open to negotiations, but that the settlement would only be possible with consideration of russian security interests. so we don't know when the next round of talks will happen and really what to make of them, so far as they have been very inconclusive. shery: what are we seeing in terms of president putin's response so far? bruce: what we know is what is going on on the ground in ukraine. his response is focusing more on civilian narratives, according to ukrainians, there are -- there are air raid sirens going off all the time. in the second largest city, russia is attacking residential areas. russia says it doesn't do that. the prosecutor for the international criminal court has said he is opening an

investigation into possible war crimes and crimes against humanity, so the situation on the ground is getting worse. shery: and as we continue to see president putin responding with his own set of sanctions. bruce einhorn joining us from hong kong. our next guest says while the potential for the risk rises, he likes safe havens in asia. let's bring in a cio and head of discretionary portfolio management at nomura. great to have you with us. tell us a little bit about how we can hedge potentially some asian assets with all the uncertainty and volatility coming from the geopolitical side of things. >> so much uncertainty going on, we think asia offers some security as a haven for another reason. one would be the large amount of

the market lagging, and if you can find equities that are commodity focused and mystic focus and not as widely held, we think these are producing value in the current market. malaysia being pushed to the top of the market for us. you've got china, the national party meeting later in march. i do think we will get meaningful easing after that. so there's a number of tailwinds in asia compared to the rest of the world. shery: i find it interesting that you like some of these asean nations, because we continue to see pressure coming

from covid. where are you seeing the most opportunities right now? gareth: like you said, there's a lot of challenges around. there are still covid challenges, reopening challenges. i think the asean region, unlike north asia where covid lockdowns -- living in singapore there's a lot of areas, reopening's are starting to ease and you take into consideration commodity exports, less focused on european trade, i think that a sean region has a lot of space to add today. haidi: does it impact your level of constructive miss when it

comes to emerging markets? gareth: we've been talking about weakening china since october. we said even the first quarter would be tough. from an economic perspective, it still going to be challenging for china. participants are forward-looking, looking to win we see a turnaround in this dynamic and when we start seeing more support. now the real thesis for china is 2022 as a year of implementation. we think while regulations are changing, with think probably the worst of the regulations from a market perspective are behind us. losing easing is coming through. it's a very political year but we think there will be real focus this year on keeping that stability and that will be good for markets in china and good for the region. what's happening in europe, the

u.s. with domestic policy slated for this year, i think it lines up to an interesting space and evaluation differential between the two. haidi: i want to take you to our question of the day, the question of how investors should be viewing the russia supply shock. is it inflationary or stagflationary? beyond that, will it inform own more hawkish reaction from central banks, or the possibility of the potential bank is step? gareth: it's a tough question. it's still sort of early in the process. given that it's a financial sanction driven war, it's obviously not on the ground, but we do think it means that the biggest risk for financial markets is commodity chaos in that one of the largest exports

-- ships can't get service when they hit different ports. and getting stall with potential pipeline issues, these are some the issues resulting from commodity chaos. it will drive further markets direction when it comes to inflation. it's very bullish for the space. i think one of the biggest things is a lot of investors, economists saw inflation in one direction, so it start to moderate as soon as april or may. that will be pushed further back . moderation getting further back and central banks will get really nervous. this is why we feel the central banks are still focusing on inflation. we think it will be more focused on inflation. shery: gareth nicholson with his

views on where the markets are headed. in the meantime we have breaking news, we're hearing that toshiba's president will be stepping down, according to tv tokyo reports. this is coming at a time when we're heading for the latest showdown between the troubled company and its investors, toshiba calling a shareholder meeting in march on plans to separate into two entities. toshiba still rising for a third consecutive session. we had heart from the president himself earlier this week telling bloomberg news that he's selling the japanese conglomerate to a find and taking it private, would be a drawback he could not condone. so the president of toshiba stepping down. bonnie: singapore plans to enclose new sanctions against russia, making it the only country in southeast asia to do so. they will impose export

controls. the government will block russian banks and financial transactions connected to the country. the measures are said to be announced soon. the e.u. preparing for reduction of natural gas supplies from russia. various scenarios discussed monday. the european commission do to produce a strategy to cut reliance on russian supplies which meet about a third of europe's home energy needs. u.s. and allies discussing a cornet a release of about 60 million barrels of oil from stockpiles. this after the russian invasion of ukraine pushed oil product -- crude prices above $100 a barrel. focused on a discharge of 30 million barrels from the u.s. an equivalent amount from other countries. a decision has not yet been made. hong kong is said to be planning a citywide lockdown to ensure a

drive started after march 15 with officials planning for three times over nine days. final details are still being worked out. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: coming up on "daybreak: asia." moody's on the upcoming rba rate decision. saying the war in ukraine could have a disastrous effect on asia's economy. will take another look into sanctions on russia. central banks taking action to mitigate the impact of the new penalties. this is bloomberg. ♪

haidi: we're seeing steady trading when it comes to s&p futures at the moment. we are seeing a little bit of a break when it comes to the levels of volatility that have dominated the last few sessions. nasdaq futures up by modest .20% as well.

when it comes to futures in europe, european stocks posting a second month of declines, largely after russia invaded ukraine. germany down by over 1% as well, despite reversing most of the losses we saw in the previous session. when it comes to stocks, the longest streak of losses we've seen since september 2020. also one of the few russian stocks trading in japan and another in korea as well. we're expecting further downsides for that, as we get the increasing risk of -- seeking feedback and monitoring accessibility of russian stocks at the moment. shery: vladimir putin is building his own financial

defenses. kathleen hays is here with more details. what is russia doing now in order to protect itself? kathleen: well, it's trying to push back against all the sanctions the u.s. and the e.u. have put on, and they've had to take some big steps. let's step back and remember, it seems like a long time, but this is just been the past two days. first of all, the u.s. and e.u. did put sanctions on the oligarchs and russia, some of the politicians and exporters, the e.u. froze assets of mr. putin and mr. lavrov and then the u.s. and e.u. started considering cutting russia off the swift system where companies can quickly and securely and efficiently conduct their

business with banks, with investors, whatever they need to do. if you're cut off from that, experts say it inflicts -- it's a big deal to do this. eu leaders voted for the cut with russian banks, but not so much the oil companies. that has been a point of contention. finally, as the week and got underway, the e.u. and u.s. talked about penalizing the bank of russia. today as trading got underway early monday in russia, the ruble was plunging. they cut the key rate -- they raised it, doubled it to 20%. the ruble had reached a record low, also putting on new capital controls and not allowing their citizens to take or send robles out of the country. so they are fighting as hard as they can but they are fighting an uphill battle that is already

hitting their financial system and their economy hard. haidi: the u.s. fought back with sanctions on the central bank. how severe are they? kathleen: pretty severe. russia needs all the foreign exchange currencies it can get their hands on. the u.s. apparently holds about $100 billion of those reserves. the u.s. has already put blockades in the way of getting those foreign exchange reserves. according to abc news, the treasury realized they got wind of the fact that the russian central bank was starting to get ready early today to start moving some of those foreign exchange reserves around. sir early on come the treasury came out with its plan to ban all u.s. citizens and u.s. companies from doing any kind of financial transaction with the bank of russia. they say it will immobilize any assets bank of russia holes in the u.s. and janet yellen says

it limits russia's ability to to finance stabilizing activities. in other words, the invasion of ukraine, it is a big low potentially to the economy, already hitting the financial system. cooper economic saying the financial crisis will only get worse in russia and the recession will only get deeper. haidi: kathleen hays there. coming up next, more on how the war in ukraine is affecting commodity arc its. prices soaring for raw materials including palladium, natural gas, and crude oil. this is bloomberg. ♪

>> the energy trade is going to be disrupted. >> this is an enormous amount of oil that has the potential to be

disrupted for potentially weeks. >> we've done it before, it really didn't make a huge impact over the long haul. >> world needs to put sanctions on russian exports. >> i think we will see in effect sanction on russian energy just by the behavior of market actors. >> the world can afford to lose to some extent. shery: with commodity prices surging with russia's invasion -- invasion of ukraine, sending shockwaves across markets, not only oil but food staples such as wheat, corn, and soybeans. aluminum also rallying on news of halting key shipments of key ukrainian plants.

the south saying it will temporarily all production. there will be no immediate wider impact on production of aluminum. it is taking steps necessary to keep secure with business continuity plans. let's bring in andrew james. tell us about some of the biggest moves you are seeing in commodities, and why this is important and linked to the ukraine invasion. andrew: even though commodities haven't been directly targeted in the sanction so far, we've seen markets sees up. that's being driven by a few factors, banks are not providing finance, socgen and credit suisse have stopped providing credit, a couple of chinese state owned bank stopped getting

involved there. the other thing is transports. in the black sea, insurers are refusing, demanding very high premiums, a quarter of the world's -- millions of barrels of oil a day go out through there. that's resulting in people just holding off purchases of russian natural gas. there is a general reluctance to order russian oil, although there is some evidence or has been a bit of trade recently. the general mood is a huge amount of uncertainty, trade flows starting to see that as sanctions become stricter. haidi: where do we see crude prices heading, given that we could see some strategic deserves open, meaning

potentially energy will be more targeted and more sanctions. andrew: they are talking about a 60 million barrel release with the u.s. and some other nations. in context, russia produced more than 11 million barrels a day of oil in january. so sanctions are extended to cover oil and that the possibility, we might see sanctions on russian energy on the table. to put that in context, a million barrel release would not have a huge impact. the opec-plus meeting coming up on wednesday. bear in mind russia is the second most influential member of opec-plus. the general consensus is to stick to a modest increase in supplies. it is possible the saudi's and

the uae could impact the supply. goleman raised its target to $115 a barrel.

♪ haidi: this is daybreak asia. i am vonnie quinn with the first word headlines. the situations in ukraine's capital is being described as difficult and tense by its mayor. with sirens going off every half hour. depended on reports russian forces are inching forward in their attempts to encircle the city. in the country's second-biggest city, residential areas are being shelled. the mayor is calling it a war to destroy ukrainian people. the european union has developed sanctions on some of russia's wealthiest tycoons in response

to russia's invasion of ukraine. a handful of billionaires who have not been hit by sanctions from the u.s. including metal tycoons. the owners of alta groups plus alexi moore to chauffer who controls a major company. working on for their measures to penalize more oligarchs. jp morgan's ceo jamie dimon says there are ways around sanctions involving swift messaging systems. this after the u.s. and allies shut a group of russian lenders out of the network grid in an interview with bloomberg, he explains that disconnecting the bank would bring unintended consequences, including third parties finding loopholes. jp morgan counseled washington against casing -- kicking russia off swift. >> a sanction says i cannot do business with you. swift says i can't do communications with you. i can still do business with you and there are workarounds for swift. different tools for different reasons. vonnie: russia has barred airlines from the eu, canada and

others in response to sanctions. russia is a key route of travel. air france and lufthansa and others have begun going around russia or moving some flights from their schedules. 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'm vonnie quinn, this is bloomberg. haidi: all right, we are just getting a gauge of some of the numbers. these forward indicators for a number of asian economies. of course, this coming at a time of uncertainty for not just the regional and global economies as we look to potentially inflaming inflation in this part of the world when it comes to energy prices. the commodities complex being impacted by the escalation of tensions and of course russia's invasion in ukraine and the impact of these sanctions that are now being wielded. we are seeing japan coming

through with a number that is slightly higher than expectations when it comes to thailand. we see a pullback, of course we know when it comes to the services sector in particular, that it will be impacted by some covid controls. taiwan seeing a little bit of a bump up from the previous -- a little bit of a pullback i should say from the previous reading. in malaysia, we are seeing some upside there as well. across southeast asia actually it is a mixed picture as we see indonesia notably pulling back from a much stronger number that we saw in the previous month. but notably, we see all of these economies still staying within -- and quite comfortably within, expansion rate territory when it comes to these pmi ratings. shery: take a look at broader markets trading right now. south korea, the yuan holding against the u.s. dollar while the nikkei is continuing to rise for a third session. we of course have been following the japanese yen very closely as

it continues to gain ground with the u.s. dollar, given all of this uncertainty in geopolitical threats. but we are watching some of those crypto stocks as well, given that bitcoin is soaring the most since july on speculation that the cryptocurrencies will actually be used two of a sanctions against russia. we are now also hearing from the minister in japan, speaking in tokyo, saying that it will work with the u.s. and europe to what secure energy supplies. this is the asx 200 and kiwi stocks also continue to gain ground in the asian session. we had a mixed session here in new york, so it is really interesting that we are seeing this huge upside momentum when it comes to asian assets. haidi: the ecb says that the euro zone could be vulnerable to stagflation in the wake of russia's attack on ukraine. in an interview with bloomberg, the government councilmember

mario warned that the ecb may have to adjust policy as the impact of the war continues. to ripple through the global economy and global markets. mario: the spirit will remain. russia is not the biggest trade partner of the euro area. less than 5% total global trade for the euro area. but still, in some sectors, it is very important. and furthermore, of course, this situation is not desirable and we need to adapt all of our policies. haidi: let's get some more analysis now. katrina l, analytics senior economist, joins us. great deal of uncertainty for the global economy at the moment. what does this mean for policymakers, particularly like

today, going into the rba decision? do what we expect central bankers to exercise a bit more caution? katrina: i think that is exactly right. just like policymakers across the globe, i am sitting back at the moment and really watching, seeing how events are unfolding. and see what the potential impacts will be. you know, they are closely looking at energy prices. they are closely looking at the financial market and impact as well as other spillovers and unintended consequences. that will really guide the near policymaking picture, particularly in asia. haidi: so when it comes to the rba, we know that tepid wage growth had been the focus, right? interestingly, the property numbers came out today saying that sydney house prices are falling for the first time since 2020. is there a sense of perhaps they've got a bit more breathing space when it comes to the pullback in the housing market? katrina: different, conflicting

factors when it comes to policymaking in australia. on the one hand, as we said, there is that tepid wage that we are seeing. the culling of the property market really continuing and that is a situation that we expect to happen right through this year. on the other end, there is that further upside risk of headline inflation coming from these elevated energy costs, as a result of high oil prices spiking. so, there's a few factors at play that need to -- you know that basically need to be assessed by the rba to see what the impact will be and what a key takeaway will be, whether we do see a pickup in inflation expectations in australia. that does signal that the rba might have to act sooner when it comes to normalizing policy rates, so they do not get that runaway inflation. haidi: katrina, what about the direction of the pboc in china? especially with more eco-data this week, including the pmi

numbers. not to mention, the start of the national people's congress? katrina: yeah, the clear direction of the pboc is further easing. we know that china's economy is facing a number of headwinds. in the pboc is playing a critical role at the moment to really manage those headwinds. we have already seen that the easing from a number of different leaders in the pboc and we continue to expect those leaders to be easing over the next couple of months. haidi: what will be the monetary fallout from the tensions over ukraine? and of course, the rising inflationary pressures coming from it? katrina: i mean, that is really the key uncertainty at the moment. so what we are just looking at is if this conflict does continue to play out for a sustained. -- a sustained time and we see oil prices indoor a sustained rise, what that does mean is that asia's central banks which were tanking -- were taking for

the most part a measure to monetary policy normalization will likely have to come off the sidelines more aggressively to anchor those inflation expectations and really stop that runaway inflation that comes with a high risk of energy prices. because what is important, particularly in asia, is that high energy prices lead to higher food prices. food prices are a large component of cpi baskets. haidi: katrina, in fact, that is actually our question of the day in the live blog, which is how the market reacts. also economists pricing the russia shock. is it inflationary? is it stagflationary? is it some combination of something else? where do you sit on that and is that really just heighten the risk of, you know, not being able to achieved a soft landing out of the pandemic for a lot of policymakers? katrina: what i would say to that is at first glance, i would

say that the ukraine conflict is really an inflationary shop or asia, just given the procedure of energy prices and food prices. but it is really anyone's guess, because it really does come down to how long this conflict goes on and how long that upward pressure and potential supply disruption on energy prices do continue. because that will be the key driver of how much of an inflation shock this turns out to be. haidi: even before this, katrina, we have already seen a tight supplies in the commodities space, right? how has the geopolitics around ukraine exacerbated that? katrina: what is meant is that our expectation was we were going to see supply chain disruptions eased by the second half of this year. whereas this conflict has really turned another expander in the works and really pushed out our expectations, because now there is that added to disruption and

there is those high input prices that are continuing to pressure producers. i mean, if we are looking at the case of china manufacturers, they were already dealing with incredibly high input costs and others input costs are going to rise even further. and so, that is another challenge -- that is an ongoing challenge that producers, particularly in asia, or having to grapple with. haidi: katrina, analytics senior economy with her take on the markets and the broader global economy. take a look at what crypto assets are doing at the moment because we continue to see bitcoin releasing its best day since july. we are seeing more speculation that cryptocurrencies will gain favor in the wake of sanctions against russia. google denominated trade at the highest since may, so we are now seeing now the crypto index, bloomberg galaxy index, about that 2100 level, while bitcoin is also above $43,000. of course, this is having an

impact on those crypto stocks, especially those traded in japan. south korea right now closed on holiday, but group for example, is really one of those companies that is gaining ground. more than 15%. haidi: sherry, still ahead a hong kong newspaper said that the city will be locked down for mass virus testing later this month it would take a look at the potential impacts next. this is bloomberg. ♪

haslinda: local media in hong kong is reporting that the city will impose a lockdown at least seven and half million residents during a mass testing this month aimed at stemming the surgeon wave -- surgeon wave of infections. new cases in hong kong soared past 34,000 on monday, forcing the city to at least temporarily scrapped its system of isolating every covid patient. let's bring in our chief north asian correspondent stephen engle in hong kong. we have kinda been talking about this, certainly with lots of newsmakers. what are we hearing now? stephen: well, the distant possibility is more of a possibility. this morning with this report, of course it is not been substantiated yet, but more

evidence has been growing in recent days this outbreak, which is surpassing 34,000 per day new infections, which we got on monday plus another 87 deaths, they are talking about they have run out of mortgage space. they need to find more mortgage space, more isolation space, more quarantine locations etc. etc. with the hong kong university study saying that at the peak, we could see 625,000 people requiring seven-day isolation because of their health concerns. not just because of dynamic zero covid, which up until now has really required all infections, even ace somatic, even those who are fully vaccinated evened not necessarily feeling ill. they were taking up much needed hospital beds per because of this surge of cases, it looks as though temporary they are going to be winding back some of these restrictions and allowing people to stay home if they are a

symptom etiquette fully vaccinated. there is just no room. there is no room to put them. look, you are seeing these gurneys out in the street outside the hospital in hong kong. the elderly are particularly vulnerable. the elderly, the severely sick elderly, our most vulnerable right now because of the low vaccination rate. so what we are hearing from the daily is now speculation of a lockdown could possibly be coming as soon as march 17. or thereafter, for a nine day testing. they are saying seven and a half million people will get three tests, one every three days, over a nine day time, which will coincide with a lockdown. it is not going to be a complete lockdown. they are talking about possibly letting family members go get daily essentials, because keep in mind, many people live in 200 square feet with multiple generations in one house. they do not have room to store a provisions for a lengthy time.

so they do have to let people out into the street and out into supermarkets. it is a tricky detail, but it looks as though, putting to media reports, that a lockdown will coincide with this testing. haidi: our chief northeast and correspondent stephen engle joining us from hong kong. and here is a click check on the latest business fresh headlines. sources are telling us that the u.k. oil giant is 20% stake back to the state-controlled crude explorer. we've also been told that bp considered a deal with rosneft because it would struggle to find another buyer for the stake. singapore's guest banks are said to have restricted straight financing for russian raw materials. sources tell us that bbc and gop have stopped issuing letters of credit involving energy deals because of uncertainty for the course of sanctions. the decision follows a similar move by at least two of china's largest state owned banks and

some lenders in europe. haidi: jp morgan analyst said disconnecting russian banks from the swift messaging system may bring about unintended consequences. that includes third parties finding ways around the penalty. he was speaking exquisitely to bloomberg about the ukraine war and the sanctions. >> defer american foreign policy to the american government. very smart experts of economic policy. hopefully, they are doing the right thing to bring it to a conclusion quickly. and also, my heart goes out to ukrainians. this is a humanitarian crisis for them and we are announcing later today some governments trying to help there and hopefully more to come. >> let me speak too quickly about swift and what that means for the global banking industry. >> there is a little misinformation. the governments can decide how to use sanctions, how to use with. a sanctions as i cannot do business with you. a swift says i cannot use a

communication to do business with the appeared i can still do business with you. so there are different tools used for different reasons and the banks are talking to the government. so everyone understands the issue. not because they are for or against any particular thing. but war does not always follow the plan you want. people should be very thoughtful in how they go about these things. >> the question of workarounds for swift is an important one because that seems to be a concern. that if an alternative system is established and gets traction, that could present risk for the financial stability of the west. jamie: they could stop it by telling us. a sanction is targeted and clean and betting on how you apply it, you can apply it in multiple ways that you cannot get around. there is no workaround in that kind of sanction. i am an american patriot and we are going to do with the american government tells us to do. so, i think they are uncertain about the unintended consequences. what countries you hurt, what

people are going to do workarounds, how you will fix that. remember, the government itself wants to have an open conduit it looks like for energy payments. so there's a whole bunch of issues they've got to work through. haidi: jp morgan chairman jamie speaking exclusively with bloomberg ed hammond. this is we get lines coming out of japan including from the prime ministers office saying that japan has bolstered its sanctions against russia to include allow the freezing of assets held at the nation's central banks. now, this would also include allowing the freezing of president vladimir putin's assets. this coming from the japan prime minister's office. haidi, as we get more insight into perhaps how japanese policymakers are looking at these sanctions against russia, the prime minister also talking about these sanctions on russia's central bank being

effective and that they will watch the impact on the japanese economy as well. haidi: we have reporting about japan. also within the g7, of course, policy coordinated approach to freeze russian foreign exchange reserves. that was according to earlier reporting in the nikkei and of course, over the weekend, those efforts by western nations in these restrictive measures roughly affecting about half of russia's reserves held in g7's nations. that is according to the european union. so we are seeing japan, japan central bank, joining in some of these efforts to create a coordinated level of pressure with these sanctions. of course, we continue to see the sanctions developing as well as counter sanctions coming from russia as well. japan saying they will continue to cooperate with g7 in the response to russia's invasion. we do have that meeting of g7 finance ministers and central-bank governments convening today. in fact, on march 1. coming up next, we are taking a

look at the opening markets in china and hong kong. there are growing geopolitical risks as well as the ongoing property slump in play. this is bloomberg. ♪

>> just over half an hour before the markets open and the

mainland and hong kong. let's bring in catherine who leads our asian equities coverage to look ahead to the start of trading. following a very volatile session again, given the tensions over ukraine. shery: and we continue to see more calls that perhaps chinese stocks could act as a hedge. what are you seeing? catherine: so yesterday, we are talking to analysts and goldman had an interesting note, basically saying chinese markets are mostly immune to these things. but do not be so sure, you might want to buy things that are related to higher oil prices or also chinese the fence stocks. that continues to be a strong play right now and defense shares are up across the region. >> there are issues when it comes to risk assets in china. property issue is still in play here. catherine: absolutely. property is always going to be a concern. i think a lot of investors right now are waiting for this

weekend, when the annual npc meeting will happen. it is an economic meeting that goes on for a little more than a week and that will be the clearest sign on how the government is planning to take this beleaguered and battled sector. and where they are planning for more policy in addition to policy easing. >> catherine in hong kong credit taking a look to be head of trading in hong kong. shanghai, some stocks we will be watching windows markets open and just about half an hour's time. let's take a look at some of the ones. expected to report results today. haidi: investors are hoping for growth driven by ai and the cloud. as we mentioned, the property slump worsening in february, signaling the cash that developers are unlikely to be affected anytime soon. we are also keenly watching those carmakers in russia and ukraine war could spill over and form a greater supply chain issue for chinese auto industry players, if these sanctions

disrupt russia's energy and metals exports. shery: of course, we will have more discussion of all of that coming up, especially assessing the impact of vladimir putin's nuclear threat and the latest global sanctions. not to mention the impact on the market. bloomberg markets china open is next. this is bluebird. -- this is bloomberg. ♪

good morning from the asian-pacific. welcome to the china open. i am david ingles with yvonne man. yvonne: markets rise over the sanctions on russia that threaten to hamper global growth. chaos and commodities as international investors and

banks