dani: good morning from bloomberg's european headquarters. 6:00 here in the city of london. this is daybreak europe. here's what you need to know. unless salt on ukraine enters a more brutal phase as allies step up sanctions. china edges away from russia, calling the conflict a war. >> he badly miscalculated. he thought he could roll into ukraine and the world would roll over.

instead, he met with a wall of strength he never anticipated or imagined. he met the ukrainian people. dani: president biden labels vladimir putin a dictator in his first state of the union and says russia's leader will pay a heavy price for the invasion. brent crude stores pass $110 as the iea warns that the invasion threatens global energy security. gasoline spikes. opec-plus meets today. it's a market that's coming to terms with the war that has entered a more brutal phase. coming to terms with a second-order impact to the economy. throughout the market yesterday were historic moves as the specter of stagflation becomes more real. you are looking at 10 year german bond year roots -- yields here. dropping 30 basis points over the past two days. the biggest drop. the fifth biggest move in all of

history, nearly unwinding all of the moves higher in yields that happened off of the back of the ecb hawkish turn last month. the move similar across the u.s.. the issue is that you have bonds rallying, stocks falling, inflation print still coming in hot, and commodity prices continue to move higher. check out what oil did yesterday. rent crude up 10% yesterday. it's up another 5% today alone, trading at $110 per barrel. all of this pointing to a stagflationary environment where central banks lose control of inflation. those are the moves over the last two days. that commodities move still extremely present. i showed you brent but this is wti, up nearly 4.5%. wheat up above $10 for the first time since 2008.

ukraine, russia account for the global exports of wheat. you still have some weakness in european stocks but yesterday, that benchmark fell by more than 4%. some of the losses easing. u.s. futures have turned positive. a little bit of steadiness when it comes to your 10 year yield. those also plunged yesterday. we are seeing a little bit of buying this morning as markets start to price out the odds of a 50 basis point and start to pull back on interest rate hikes. let's get the latest on the war in ukraine. western military officials are warning that russia's invasion is entering a more deadly phase with russian forces likely to use more indiscriminate tactics to suppress resistance. let's get the latest from our team in moscow. walk us through exactly what the environment looks like and what a more deadly phase of the war looks like. >> in short, ukrainian officials are saying that russia is targeting and bombing

residential areas in cities. the mayor of kharkiv said that residential areas were being bombed yesterday. ukraine, kyiv, russian military has said that they've encircled the city and there's evidence that they started striking targets in the city itself with missiles. dani: it's usually during these times when we ask what the impact to financial markets is, the answer is, who cares? moscow dealing with the financial impact of sanctions put on them. they banned coupon payments to foreigners on about $29 billion worth of bonds. what is the thinking there? >> they are trying to shore up the economy and ruble after the impact of western and international sanctions. the bank of russia introduce that instruction last night.

what it means is a freeze on local security sales by foreigners and foreigners are left holding almost 3 trillion rubles of debt, on which they can get coupon payments but not receive them. the bank has said that the payments will be made but those that hold the bonds won't actually get them. dani: thank you so much for the update. president biden has flamed vladimir putin's invasion of ukraine, calling the russian leader a dictator and warned that the war will leave his country weaker. in his state of the union address, he pledged to fight inflation and turn the page on the pandemic. >> a russian dictator invading a foreign country. he thought he could roll into ukraine in the world would roll over. instead, he met with a wall of strength he never anticipated or

imagined. he met the ukrainian people. i'm taking robust action to make sure the pain of our sanctions is targeted at russian economy. we will join our allies in clothing -- closing off american airspace. inflation is robbing them of games they -- games they thought they would be able to feel. i get it. that's one of my top priorities getting prices under control. i have a better idea to fight inflation. lower your costs, not your wages. [applause] the united states has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. we stand ready to do more if necessary, united with our allies. under the new guidelines, most americans and most of the country can now go mask free. dani: bruce einhorn joins us now. less than 10 minutes, the address of russia and new crane. were there any new announcements made on that front?

bruce: we heard just now and the excerpts from the speech that the president announced that the u.s. will close airspace to russian airlines. that was something new. beyond that, there was a lot -- the president expressed the unity among the u.s. and its allies in opposing the russian invasion. the other two key themes of the speech, having to do with covid and inflation. when it comes to covid, the president talked about how people should be thinking about going back to the office, that it is safe to go back to work. he touted the arrival of pfizer's drug, the antiviral which he said will be available soon in drugstores so when people test positive, they can immediately get pills. that's an important part of returning to normal for the u.s.

after the omicron wave. he also talked about inflation, as we heard. outlines a few things he has in mind to reduce health care costs, the deficit. the deficit point is one that some -- catering specifically to senator joe manchin of west virginia who in the past has expressed concerns about the bill back better plan that didn't make it through congress last year. it's unclear whether any of these initiatives in congress will get anywhere because ultimately, it comes back to the same issue. it's a 50-50 senate and it's hard to get anything done. dani: thank you very, -- very much. the market looks towards a potential stagflationary environment. thanks for that. that's the u.s. response. let's turn to europe's response. you investors have agreed to include seven russian banks from the swiss financial messaging

for some -- system and are being prepared for further measures against belarus. joining us now is maria tadeo. we've heard the swift sanctions. are there more coming? maria: what we had yesterday was the details on the package that was announced over the weekend which targets the russian central bank but also the swift. we see the btp is now included. what i would point to is the picture looking forward and looking ahead. we know that there's a very real conversation happening in europe about war sanctions. perhaps even including the energy sector which is not featured in this package. a lot of it had to do with the images we've seen from ukraine. this is a picture that has become very severe and very brutal. a european official yesterday told me that after the bombing, this is a completely different more.

the nature of the war has changed. russia targets military points and targets and really goes a -- after residential buildings and offices, including ukrainian monuments that are so important to the history and legacy of the country. a lot of concern on that front. over the next 48 hours, we are going to see an escalation because this is a country that is resisting and the russians believe that this is going to be an in and out operation. on the ground, we are seeing a different reality. this is turning into a lot, a much more brutal war. dani: thank you so much. that's maria tadeo. to china now which says it is extremely concerned about harm to civilians in ukraine in the first high-level phone call between china and ukraine since russia's invasion. beijing called for more negotiations. the chinese foreign minister spoke to his ukrainian counterpart by phone. matthew broke his life for us in

hong kong. i mean, a phone call between china and ukraine. does that mean that his commitment of no limit relationship with putin is over? matthew: i wouldn't say that it's over. clearly, there are some limits though. china has been straddling a very difficult line here. they signed this partnership with russia less than a month ago, on the eve of the winter olympics. this is the first big test of it. china has refrained from condemning russia. they haven't put it behind them either. it has been a difficult tightrope that they've been trying to walk. there are signs now saying that

they abhor the conflict. their sign of movement there. china is probably under pressure with the strength of the international backlash. they are feeling a need to move towards the ukrainian fight and to be more some pathetic. dani: in the discussion of russia, which is being tested, a lot of it hinged around russia's reliance on china. does this change in rhetoric translate to russia no longer relying on china to shore up its economy and financial reserves as the rest of the west pulls away? matthew: i wouldn't expect that at all. i'm sure that china will still be receptive to helping russia economically. china itself is going to benefit from this. if western europe is no longer

buying gas and oil from russia, then china i'm sure will be only too happy. they also raised limits on imports of russian wheat. that's to the benefit of the chinese economy. i would not see that changing. dani: thank you so much for joining us this morning. that's matthew broker. let's get to the first word news with juliette saly in singapore. juliette: brent crude has extended its relentless rally ahead of today's opec-plus meeting. the international energy agency warns global energy securities are under threat following russia's invasion of ukraine. futures in london and new york rose almost 6%, pushing wti to its highest since 2013 despite the u.s. and allies agreeing to accord more -- correlated relief.

russia's flagship was offered the sale at a record discount but received no bidders. the u.n. is warning that as many as 4 million people could leave ukraine as the war intensifies, four times more than an earlier forecast. it was offered in a secured council meeting. about 680,000 people have already crossed against borders. nike has become the latest company to halt product sales in russia following the country's invasion of ukraine. they are also removing sputnik news applications and app stores. it is disabling traffic and live internet speeches in ukraine as a per cautionary measure. exxon mobil has joined key rivals in exiting russia as pressure grows on energy giants to respond. a hold of 30% stake in the

offshore oil operation in russia. it says it will begin the venture without giving a timeframe. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. dani: thanks. coming up, we discuss all the market action with janet mui. this is bloomberg. ♪

dani: welcome back to bloomberg daybreak: europe. a quick check on u.s. markets for you. we did have some bonds selling to start the morning but that has flipped yet again.

now back into selling. it's basically unchanged after a dramatic move in the bond market to start to price out interest-rate heights. you are seeing some reversal when it comes to u.s. stocks. yesterday's fall of 1.5%. brent crude continues to search, up another 4.5%. trading at its highest since 2014. let's get into these markets. janet, thank you for joining this market. -- this morning, rather. how has your view changed, given the increased intensity of the war? janet: good morning. thanks for having me. at the start of the year, we traded our equity exposure because we feel that the headwinds have been building up. we have been a bit positioned into the environment thankfully. the key concern is obviously energy prices.

today, we have seen oil prices top $110. that would put more upside pressure for developed economies in the near term. this is something we are closely watching. as far as sanctions, they are designed to carve out the energy. if that is still the case, we don't think that will fundamentally change a lot of the economic picture. the concern is the high-energy cost, potentially triggering a recession. i don't think we will go there yet. as long as we don't see a recession coming in western economies, we think that the fundamental case does not change. we are closely monitoring the situation. dani: if it's not stagflation that we are heading into, that's not your base case, does it make sense to price out the moves from the fed that the market has done over the past few days?

about a 5% probability priced in that the fed will move at all in march. is that a mistake? is the fed able to continue to hike rates in this environment? janet: we believe the 50 basis point hike is off of the table in march. i think the 25 basis point hike is very likely to go ahead and march. the u.s. is still facing an inflation problem. the fed has to address that. they've made it clear that they care about that. a lot of fed officials are in line with that view. they have to tighten policy from march onwards. we do think that previously, there were a lot of stragglers coming out and saying, we could see as much as nine rate hikes. we feel that's not going to happen. we don't think that it will stay there and do nothing. we expect a couple rate hikes, five or six in the base case scenario where we don't see further escalation or energy

supply being cut off. dani: i wonder if the american economy is isolated to some degree. we see energy prices continuing to rise when it comes to oil and commodities. could that translate into a more aggressive fed? janet: first of all, we think that the fed cares about the domestic inflation story. i think they also care about the international picture in terms of what's happening elsewhere. they have to think about high inflation into the slower economy. our base case doesn't go into recession but that doesn't and there won't be a slowdown. with real wage growth going into negative territory, there's a case for lower spending and more depressed spending and the economy. they have to take that into account. they will go ahead with raising rates because they know that they care about it. they want to do something. i don't think they will go to aggressive if oil prices for --

go further up. i don't think that would be the case. dani: the uncertainty. janet: yeah. basically, western developed markets would not be able to tighten as much. if we see further deterioration in the situation -- that scenario would be more likely to happen which i don't think they want. dani: fair enough. thank you so much. you will stick around with us. much more to discuss. coming up, oil continues to rise. we will have more on that, next. this is bloomberg. ♪

welcome back. dani: oil continues to soar today and it comes as the international energy agency warns global energy security is under threat after russia's invasion of the ukraine. the bloomberg commodity spot index has jumped the most since 2009 to hit a new record. commodity prices are rallying with grain, energy, and metals at risk from the war. still with us is janet mui. you are talking about how heading into this, you had pull back on some of your equity exposure, serving you well. in this environment when we are seeing sky commodity prices, how does your geographic mix look? janet: first of all, we are modestly overweight on our u.k. equities. that has been helpful because we think that's the region benefiting from high-energy prices, given some of the largest and any -- energy companies are listed in the u.k. financials should do well.

i think we have good exposure to that. dani: financials even though there's a risk of sanctions impacting russia's financial system? they sold off pretty significantly. still a strong financial future even in that scenario? janet: in terms of the u.k. market, we expect that the exposure to the russian market is actually not significant. it's mainly the european banks, australia, italian, french franc's -- banks that have the most. we have assessed the risks and we are comfortable with that in the u.k. market. to answer your question, i think the u.k. market looks attractive because of valuation versus its peers. it is likely to benefit from the

high commodity prices. the other reason is that the u.s. exposure, we are very selective. we primarily have exposure to quality companies. we do a lot of analysis. given the current economic environment, we felt that this was the right exposure. dani: what do you do with european equities right now? janet: in the near term, we think that european equities are going to underperform. europe is obviously having the biggest threats of exposure to the russia and ukraine situation , whether you are talking about direct energy reliance, economic impact, the inflation story, or the direct financial linkages. europe is likely to underperform. the thing is, given the market selloff, we don't think it's the right decision. dani: ok. janet: to selloff in the current

environment during times of crisis. we are holding onto the position at the moment. dani: thank you so much. wonderful to have you on the program this morning. that's janet mui. co

dani: good morning from bloomberg european headquarters. we're are just gone 6:00 a.m. in the city of london. this is daybreak era. moscow's assault on ukraine enters a more brutal phase has allies step up sanctions. china edges away from russia, calling the conflict a war. >> the badly miscalculated. he thought he could roll into

ukraine and the world would rollover. instead, he met with a wall of strength he never anticipated or imagined. he met the ukrainian people. dani: president biden labels vladimir putin a dictator and his first state of the union and said russia's leader will pay a high price for the invasion. global energy and security. gasoline and diesel spike. opec-plus meets today. the market has a lot of digesting to do as we monitor and look at the humanitarian impact of a more brutal war. the secondary impact of an economy under threat. it is the specter of stagflation being digested and priced into these markets.

a historic move in european sovereigns. look at the german 10-year yield, falling 20 basis points yesterday. that is the biggest move since the financial crisis. the fifth biggest move in history. nearly all the bets with the ecb's hawkish turn, it is also pricing out of tightness in the u.s. stagflation is the word our last guest said she does not think we are heading toward a stagflationary environment, but oil markets are worrying enough people to price that in. this has cut a lot of eyes. we will walk through these moves as well. trading above $110, up 10% over the past two days. new bonds rally in, oil higher, this is far from a bullish environment and one that is starting to look more stagflationary. let me show you wti and wheat. the commodities move is not easing up anytime soon. nymex crude at 108. wheat prices in chicago, more

than $10, the first time since 2008. still looking at weakness in european futures. we have been flipping back and forth between buying and selling on your tenure, but more or less it is flat. let's get back to that oil story with brent trading near $110 a barrel. international energy agency warned that global energy security is under threat after russia's invasion of ukraine. the dramatic price moves will be top of the agenda as opec-plus meets later today. goldman sachs believes oil can go as high as $150 a barrel -- $115 a barrel. >> the energy trade is going to be disrupted. >> this is an enormous amount of oil that has the potential to be disrupted. >> if you start using -- you

need to keep that. >> we have done it before, it did not make a huge impact over the long haul. >> [indiscernible] >> i think you were going to see in effect a sanction on russian energy just by the market actor. >> [indiscernible] >> we would like to be engaged with the administration. i think when they first came into office, they had a whole host of priorities with the pandemic, the economy, and engagement with their industry was not one of their priorities. dani: joining us now is the head of commodity strategy. fantastic to have you on today. oil markets, commodity markets responding to sanctions in russia despite the carveout in those sanctions for the energy,

the oil, the gas sector. talk to us about the difficulty with these sanctions and being surgical and leaving those unharmed. >> good morning. basically, the market is quite not fully comprehending the impact of the sanctions. they are airing on the side of caution. the main story yesterday was the fact that one of the largest independent oil companies was trying to sell the crude nearly $20 below brent and not finding a taker. in large amount of the russian export is currently not finding a buyer. the oil has to be found somewhere else and that is why we are seeing brent being forced high as we have seen over the past 20 four hours.

dani: it really is remarkable. cheaper oil out of russia, but no one is really willing to touch it. the extreme level of backwardation in this oil market, looking at the spread between one month and six months . this is goal for crisis levels of backwardation. talk us through the tightness of this market and how likely this tightness is going to last. >> it all depends on the situation in ukraine and russia, how long we are going to see that and what the outcome will eventually be, but what we have to keep in mind is up until this week it has been going up in anticipation of worries about the disruption. nothing disruption is real and we are seeing the consequences of that. we are entering a much more dangerous phase in the soil market. if we are seeing a scramble for

barrels, anything can happen. we may see would opec-plus do today. i think they're probably stuck not being able to do much. it could be a decision by saudi arabia, but it has not really been pointing in that direction. the disruption is real and it depends on the length of this crisis we are seeing. dani: the release fails to satisfy markets, fails to bring down prices. at some level, you have a finite amount of resources trying to fight an open-ended issue when it comes to russia-ukraine. is it realistic at all to call for messaging around demands management be the thing that helps bring oil prices down? >> we have seen some remarkable decisions being taken, some we

probably would not have thought possible a few weeks ago. that means anything is open. you could across europe ask everyone to work from home again, just like we did during the pandemic. that would kill some of the fuel consumption we are seeing right now. we are entering the phase where we probably need to see demand disruption. we see that happen with the gas price. yesterday, carbon cost -- contracts dropped 16%. a lot of people saw this as a one-way bet, but it is an indication that we are seeing power consumption in europe as a consequence and that will happen to oil as well if this continues. dani: you briefly mentioned opec a moment to and opec-plus meet

today. for the most part, saudi and uae have sided with russia, but it is also in their interest to have a stable oil market. is there any scenario where diplomatic pressure could cause them to up their quota from current levels? >> i'm not a diplomat, so i haven't got deep insight into the thinking, but we have seen before how saudi arabia can go and surprise the market by supporting it for a period of time. you can argue this could be the time because we have seen several producers starting to reach their quotas in recent months. dani: can i jump in real quick because we are running out of time, but i want to get your call on prices in oil? bank of america said they could get to $200 a barrel in the most extreme scenario of sanctions. >> $150 is not out of the question, but clearly hoping we

are never going to get to that. dani: so great to have you on. $150, what is going to be the thing that brings us there? >> basically prolonged period of sanctions, russia not being able to sell its oil. dani: thanks as always. wonderful to have you on the program. head of commodity strategy at sexo -- saxo bank. we are live from the region next. this is bloomberg. ♪

dani: welcome back. i'm dani burger in london. the u.s. estimates that up to 4 million people could leave ukraine as the russian invasion intensifies. the u.n. high commissioner for refugees estimates a 300% increase from the earlier forecast. nearly 700,000 people have already left ukraine. we are at the border crossing in southeast poland and joining us on the phone is our moscow reporter. what is the situation on the ground? >> currently, it is freezing here on the ground. and we see that there are still quite a few people crossing the border, but the amount of people has dropped significantly then yesterday as many of the people have moved on. the volunteers on the ground have told me that a lot of people have been able to now leave the border crossing and be

able to be moved to other places in poland and a lot of the people left here are people who don't have ukrainian nationality and are finding it harder to then move on from this location. dani: what is poland doing to support the refugees? >> so, currently they are trying to facilitate the waiting times to decrease. at the moment, the waiting time at this place has decreased significantly since yesterday. it was 60 hours people were waiting yesterday to get across the border, it is now closer to 25 hours. we are seeing that with the border crossings they are trying to open up new border crossings to facilitate more people coming over. they have been on the ground in this area since february 24 and they are still here today. dani: aggi, thank you. our reporter on the phone and

moscow. what is the latest on the ground in russia? >> russian forces claim to have surrounded kyiv. they were warning those in the city yesterday that they were intending to target what they called military targets inside kyiv itself and there were strikes on the city during the day yesterday. also, the authorities in the second largest city kharkiv have reported heavy shelling in areas around the city. ukrainian authorities have been appealing to the international red cross and others to create humanitarian corridors so residents can leave if they want to. dani: we have also had restrictions coming out of russia on bond payments to foreigners. walk us through what was announced. >> yes, what happened was the central bank of russia has banned coupon payments to foreign owners of ruble bonds.

they claim it is a temporary measure, but it could take as long as six months. what that means is that foreigners who already can sell these bonds may receive, may get the payment on the bonds, but they will not actually be able to receive them according to the central bank. the payments can be made into depositories, if they are due, but those will not be able to receive any money. dani: continued moves to try to shore up the economy and financial system in russia. thanks to our reporters and poland and moscow. i want to mention what prices are doing. we are looking at $111 on brent crude right now, that is again of 6%, over the past two days a gain of 10%. our guest in the past 20 minutes saying $150 could be were oil

had stew in the case of prolonged and strict sanctions. what does that mean for inflation? what does that mean for the economy, especially if there are concerns about a slowdown in growth? we continue to see markets under pressure as commodities trade near the highest in over a decade. coming up, it is the corporate follow for russia continuing. apple and nike announced plans to halt production sales in the country. this is bloomberg. ♪

>> we announced yesterday that airbnb in partnership with our host community have a goal to house up to 100,000 refugees fleeing ukraine.

since we made that announcement, we have had 30,000 people visit the page to learn how to be a host or donate. we are trying to get more word out. more hosts we have, the more refugees we can house. >> what is the feedback you are getting from governments, from border crossings about the situation that these refugees find themselves and in the crosshairs of a war? > we have reached out to 14 different governments in central and eastern europe, poland and hungary and romania and germany, and what they are telling us is mostly thank you, because the last reports i heard over 600,000 refugees have been fleeing ukraine, so these governments need to find a way to house them and we can provide an infrastructure. we have housed 54,000 refugees for free since we started airbnb and over 100,000 people in need for all different events for free. we are being viewed i hope as a solution to a problem that they have.

we can be a great partner and i think they are appreciative of the support and help. >> what has been the response from hosts? has there been an outpouring of support? >> it is just starting in the last 24 hours. we have had a large response so far. two years ago when the pandemic initially broke out, we work to the french government to provide housing for workers on the front lines, tens of thousands of host stepped up. we had tens of thousands step up to provide housing for afghan refugees and we are expecting a pretty big response. the main thing we need to do is just ensure that in the flood of all the noise going on that people who have homes that have availability in these countries know that they can taken refugees. >> i know airbnb has a significant number of listings in ukraine even the number of short-term rentals i see in kyiv , do you have employees in

ukraine and what is the status of your operation and hosts there? >> we don't have employees, we don't have a meaningful number of employees in central and eastern europe. as you imagine, we have thousands of listings in countries all over central and eastern europe, so our big focus right now, we are focused on two big priorities. we are trying to make sure that our hosts and our community is safe. we are doing a lot of outreach to our hosts and guests all over central and eastern europe. the second focus we have is to try to house as many refugees as possible. this entire refugee effort started three days ago. it was thursday and friday that it became apparent that there would be hundreds of thousands of people fleeing ukraine, so we have worked all weekend through yesterday to be able to mobilize this effort. dani: the airbnb ceo brian chesky speaking to bloomberg's emily chang. let's stay on the corporate impact for russia.

apple and nike have joined the global boycott, both announcing halting a product sales in the country. joining us now is bloomberg's benedict camel. bring us up-to-date with the countries boycotting russia. >> what we saw happening over the weekend, the trickle of companies leading, has turned into a real flood now, a torrent of companies coming out. you mentioned two of the biggest and iconic names, apple and nike, they are both basically retreating from russia. apple said it will stop shipping its products there, it will stop apple pay in the country, it will ban some russian news outlets from its apple sites. while it might not have a huge financial impact for the company, but it does do is it will probably hopefully turn a

younger generation against what is happening in russia, what is happening in the war, that people will start questioning the fallout and start ultimately rising up against what is happening there. here are two examples, but there are many more. we saw four to saying they will stop their work with the joint venture partner. we have seen companies in the energy field joined the exodus. really, it is across the board that this is happening and it is early days and this will likely continue as the war intensifies. dani: if that is who is boycotting russia, who are the notable holdouts? >> there are a couple out there who are tiptoeing around subject. total, the french energy giant, they said they are staying put for now. the french government is in a bit of a bind. we have seen salty words from the french finance minister who called for an all-out economic and financial war on russia.

at the same time, one fizz big companies is staying put. -- one of his big companies is staying put. we might end up seeing them aving in the end. it is unclear at this point. the unwinding of these operations is much harder than the announcement. we heard from bp and the potential massive write down they will have to take on this. glencore, the big commodities trader, said they are reviewing their operation. they stopped short of saying they are going out. some are tiptoeing around it, some are pulling out, the actual unwinding is unclear at this point. dani: benny, thank you so much. i want to bring us some breaking lines on wti crude. the rally continues to extend itself. we are now looking at wti that

has rallied past $110 a barrel and then slightly pulled back. when it comes to brent crude, we are above $111 a barrel. as we are watching oil continue to rally, the fear for stagflation is playing out through the bond market. take a look at what the two year yield is doing. the strong bid has come through over the past three days to a drop of about 30 basis points. yesterday, it was a really wide, broad buying of the bond market space. today, it is very pronounced in the front-end. yields were lower by about 6.5 basis points. this does seem to be moving in tandem with the pickup in oil prices. what this means for central banks, how bad prices are going to get, we are now because of

that looking at s&p futures start to turn into the red of for so slightly, but they were up 0.3% earlier this morning, so markets turning more ugly as oil marches higher. bloomberg markets europe up next going to walk you through all those moves. this is bloomberg. ♪

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anna: good morning. welcome to bloomberg markets europe. mark cudmore joins us in singapore to take us through all the market action this hour. cash trade is just less than an hour away. moscow's assault on ukraine intensifies as kyiv's allies step up sanctions. china edges away from russia, calling the conflict a war. >> they badly miscalculated.