we are watching a lot of asian stocks tied to base metals to move today. zinc, aluminum and copper, nickel, you name it, most of those to record highs. we are hearing from the new zealand finance minister saint economy is bracing slower than expected economic growth as well as a lot of inflation as they prepare for the annual budget. of course the omicron outbreak will be having an impact on the economy. futures looking mildly positive. we heard from the boj yesterday, it really ramping up the messaging when it comes to the importance of higher wages, seemingly trying to send a message that just because they

might get a bit more inflation, that will not stop the payback on monetary stimulus. shery: let's look at what is happening to futures, they are rebounding at the open after we saw stocks falling in the new york session. we had markets fluctuating throughout the session. investors have a lot to digest, including the comments i the fed chair, but also week u.s. services numbers. very volatile oil price. wti at the moment is rebounding. it had gone up to a 14-year high , topping $160 a barrel, but we have the possibility of the iran nuclear deal looming and that paired back against. futures not doing much. the 2-10 spread is flattening yet again. let's talk about ukraine. russian president vladimir putin is pushing on with the war, telling the french president he

will fulfill his goals and that things could get worse. let's get the latest from our political director, jodi schneider. what is happening on the ground? we keep hearing reports of more bombing. jodi: it does appear to be getting worse. there has been bombardment in several major cities in the ukraine, and that there have been missiles -- strikes in kyiv, the city that many analysts have said they fear could fall, perhaps in days. at the same time, you have estimates of one million refugees heading out of ukraine to neighboring countries, with the u.n. saying that you could have 4 million people leading there in the coming weeks and months. so it is a real problem on all those fronts. at the same time, interestingly, there were talks today between

the ukraine and russia at a location in a forest between the two countries, but of course, the expectations were low to start with, and there was no real victory. russian president vladimir putin and his officials said that ukraine would have to denuclearize, and that is not something -- and de-militarize, something that officials there were not willing to do. at the same time, you are seeing the u.s. take further steps to try to sanction russian officials and isolate putin on the world stage. haidi: we are seeing more targeted measures now from the biden administration. jodi: that's right, we are seeing targeted measures, we saw a number of wealthy russian tycoons who were sanctioned today, including the press secretary of vladimir putin. at the same time, the u.s. --

the biden administration has not been willing to support a ban on russian oil. nancy pelosi, the house speaker at the press conference today said , " ban russian oil." but the press secretary jen psaki said they could not do that because it would raise gas prices in the u.s. the white house is trying to walk the line of punishing russia and isolating russia, trying not to have it hurt the american public, certainly not on the inflationary front, as inflation has been a real problem for months now. we will see if they can continue to walk that line. but at this point there will not be a ban of russian oil, which only makes up about 3% of u.s. imports. shery: political news director jodi schneider with the latest. haidi: and chair powell said the fed will start hiking rates to fight inflation, even as the

ukrainian invasion reverberates on the u.s. economy and global markets. our global economics and policy editor kathleen hays is here with more on the second day of his testimony to congress. what things stood out to you today? kathleen: it is interesting, on day one and day two, the senate banking committee and the house financial services committee heard testimony from the fed chair, and it touched on the same things. jay powell's goal is to say, we know inflation is out of control and we have to get back under control. we will start hiking rates. today he stressed that yes, there is many uncertainties about how ukraine will affect all the things you just mentioned, we are aware of it and we will move carefully. he was asked about the impact of ukraine on inflation -- number one problem for the u.s. right now, it seems. he said it could affect growth. growth in the sense of it being a negative impact.

that it increases costs for consumers and businesses. also important that there was a lot of questions asked about the international and financial ramifications of what the u.s. has done so far with sanctions and more against russia. for example, many questions about crypto-currencies and if they can be used by russia and others to sanctions somehow. very interesting exchange between jack reed, democratic senator on the banking committee, from new jersey, he has been concerned about the rise of china's power and what it means for the u.s. and the rest of the world. he mentioned that china has seen sanctions, they might be getting ready to protect themselves. he talked about the s.w.i.f.t. system that the u.s. is using, the international online payment system. china might start increasing their development of that. he talked about the fact that the dollar's role as a reserve currency might be questioned by the trainees and they will try to promote that. what is interesting is jay powell was willing to say, yes,

those are issues, not near-term issues, they are longer-term issues. but jay powell was very careful to avoid making a clear statement. beyond that, both days, powell was challenged by republicans. saying, did you make a mistake by not starting the inflation hike sooner. jay powell so far has said, we were wrong, we got supply constraints wrong, but we are ready to move. there is richard shelby, senior republican senator on the banking committee from alabama, what he said to jay powell. -- you are prepared to do what it takes without any reservation to protect price stability? >> yes. >> that would be a departure from what you have done. su: he always faces this kind of questioning from congress, but one thing is for sure, jay powell knows that information

has to be fixed, he is ready to do it and he is watching ukraine, and on march 16, we will get a 25 basis but rate and probably more signals about what is going to come next. shery: global economics and policy editor kathleen hays. we are hearing from korean news that the u.s. will be exempting korea from russia export restrictions. south korea will be extending zero import tariffs on lng for three months, and that the u.s. will be exempting korea from russia export restrictions. let's get to vonnie quinn with the first word headlines. vonnie: french president emmanuel macron says putin has refused to halt his attack on the ukraine, and he is convinced the russian president was to control the whole country. he held a 19-minute phone call with putin in which putin repeated his goals of ukraine's brutalization and neutral status, saying they will be

achieved no matter what. moldova and georgia are asking the european union to begin membership talks. . they joined our bed earlier this week by ukraine -- they joined a bid earlier by ukraine this week. eu leaders will discuss enlargements at a summit in paris next week. the european union wants to remove russia's most favored nation status at the wto. it would increase costs via tariffs for any e.u. companies still doing business with russia. the bloc has already adopted sanctions against russia and the latest move could hit $100 billion of its exports to europe. china's central bank says domestic bitcoin transactions have plummeted 10% of the global market. the country used to be the world's crypto hub. beijing has been intensifying its crackdown on cryptocurrency mining and trading in the last decade.

this is part of the pboc's broader efforts to regulate its financial markets. china is likely to announce its lowest growth target in more than three decades. . the annual national people's congress starts friday, with a speech by the premier outlining the main economic goals for the year. the centerpiece is the release of the full year gdp goal, which most economists in a bloomberg survey is between 5% and 5.5% for this year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: still ahead, the refugee counts from the ukraine war has reportedly topped one billion people. we will discuss what action is needed -- has reportedly topped one million people. we will discuss what action is needed. and we will discuss the impact on inflation. this is bloomberg. ♪

>> inflation is too high. we are accountable for inflation, and we will use our tools to bring it down. there is no precedent for this. it is just taking so much longer for the supply side to heal than we thought. byproducts of the ukraine war, it is looking like supply chains, it is not going to help at all with supply chains. in the near term, it is down to the private sector and supply chains and things like that getting fixed. and it is down to us doing our jobs with our tools. ultimately we think the supply-side will improve and that will help with inflation. meantime, we will use our tools and get this done. haidi: fed chair jay powell saying the surge in energy prices will last.

markets are still underestimating the system price pressures. let's bring in johan jooste, global cio office managing director. thanks for being with us. how much appreciation of inflation is there, particularly across the disruption in the communities complex, and food prices? you hannah: there was no mention of the second round effects. oil price has gone higher. green is going higher. but then also the supply chain issues, and base metals and other commodities. but you have to factor in that once this gets into people's salaries, and it becomes part of expectations that people have for prices, then you have the commitment becomes embedded. that is the thing we think the market is not fully pricing in

at the moment. haidi: how do you anticipate as an investor, some of the opportunities that arise from that? yael: fixed income portfolios already have inflationary protection with bonds. we have and will continue to find time to do so. in the equity space, probably not too late if you don't have -- to make sure that you have materials exposures. mining stocks. you probably don't want to be underweight gold. silver, palladium, platinum. those stand to gain from a price point of view from supply chain problems. auto making. you probably want to avoid the sectors where earnings -- the pricing of stocks is going to hit earnings, specifically for some of the newer tech stocks.

so don't think it is too late to make those shifts. i would advise you to get on it. shery: yet, we have seen in the last few days the return to the old playbook, and value stocks sort of moving momentum and growth stocks suddenly regaining favor. are there any parts of the growth story that you like i think you need to look at, for a change, if it wasn't for the case of covid you need to look at earnings. i think you will find that some of the growth stocks also have an angle toward the covid reopening trade. there is an element of resilience in some of the business models. but you have to be pretty careful, because valuations are run well ahead. if we go into a phase now where it is just going to be an issue,

rates are going to be higher, i would suggest this move we have seen recently, is probably just a market taking a more conservative view of just how aggressive the fed might be an that ties into the value growth angle. but i feel confident that it will reset. shery: tech has become much cheaper in china as well, with the crackdown. anything that you will be watching this weekend as we get the npc going? johan: from the point of view of china, they definitely still have a major problem on their hands with the property sector, the de-leveraging event going on. de-leveraging is antigrowth. still want to see what possible measures they have there, and what else can they bring to bear on the economy. they are lowering their growth

targets. that is their way of saying that #1, there are a few headwinds, and higher commodity prices is only one of those. shery: johan jooste, global cio office md. coming up next, the former renault-nissan boss carlos ghosn, weighs in on ukraine. russia was their second-biggest market. more on that next. this is bloomberg. ♪

>> ukraine and russia are very important suppliers of, of corn, of wheat, sunflower oil, to the global market, and my hope, i

hope that this military invasion will be suspended very fast, and our farmers will be able to have the normal agricultural year. haidi: the national bank of ukraine deputy governor there talking about the impacts of war on agricultural suppliers. we are tracking the fallout of the global supply chain crunch. top stories today -- white house press secretary jen psaki says the biden administration is not interested in a russian oil band, just a democrats and republican automakers have united behind cutting back russian oil. she says the white house does not have a strategic interest in reducing the global supply of energy as that would raise, races at the pump for americans. this company has joined the exodus of companies suspending exports to local production in russia in response to its invasion of ukraine. the move affects vw two

factories in russia, and is halting production at two of its polish plants on march 10 to supply chain disruptions caused by the war. nhk is reporting that panasonic will purchase land in the u.s. to build a plant to supply tesla with its new lithium-ion battery . oklahoma and kansas are among candidates due to their proximity to tesla's new texas plant. shery: and take a look at this chart which shows the bloomberg commodity sport index up over 9% this week enough to make it the strongest week since 1974. bloomberg terminal users can read more about this story in our newsletter "applying means -- supply lines." as companies exit russia, the former were no-nissan ceo carlos ghosn says he has no regrets about creating the renault venture with a russian company. the country is renault's

second-biggest market. he spoke to bloomberg following the verdict on his former business partner in japan. >> they are important, but they are not so important. i don't think that you are going to cripple the supply chain of the car industry because of what is going on between russia and ukraine. they are going to be hurdles and challenges, but i don't think any car manufacturer has massive supply coming out of these two countries. it doesn't mean that there will be no problem, but management is here to solve them. >> you left a business that was within an alliance -- renault-nissan and mitsubishi which you are familiar with. do you think the difficulties in russia for many automakers, that that will change the shape of the alliance at all? >> well, i think this particular thing between russia and ukraine is not going to change the face of the alliance.

the alliance, in my opinion, took a huge hit in 2018. frankly, i think it is a zombie today. they are not working together, just maintaining the appearance of an alliance. there is no, division between the companies. there isn't this ardent desire to work together and to benefit from this cooperation. in my opinion, it is doomed. the only reason to have an alliance between different companies is the willingness to work together, to make hard decisions together, and we haven't seen any of this in the last three to four years. >> speaking of decisions the alliance may be forced to make, we are hearing that volkswagen may be stopping production in russia and halting exports to russia, according to its ceo, headlines just crossing the terminal. if you were still in charge, what would you be doing in russia? do you think renault should be making a similar move? >> again, i am not in charge, but i can tell you that if i was

facing a crisis like this, the first thing i would make is a diagnosis, an exact diagnosis of the supply chain. i would take not only the immediate decision, but i would be communicating these decisions, not only to reassure people, the stakeholders, the shareholders from our side, the employees from the other side, even the partners in russia, which in a certain way, they don't have anything to do with what is going on. it is a political issue. i am stunned by the fact that it is complete silence. there is nothing to be said by the company. haidi: the former renault-nissan ceo, carlos ghosn, speaking as closely to bloomberg. next, china's leaders are gathering in beijing for a key meeting to lay out policies and priorities for the country this year. we will discuss what to expect, ahead. this is bloomberg. ♪

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heidi is japanese jobless rate data coming through. it is actually 2.8%, the jobless rate for the month of january, accelerating from 2.7 percent in november. the job to applicant racial is at 1.2, higher than expectations of 1.15. and also higher than where that level sat december as well. we were expecting labor market conditions to worsen in january.

we saw virus curbs accounting for 90% of overall gdp that slowed hiring. the job to applicant ratio, though, was a surprise. lumbar economics looking ahead, expecting conditions to weaken further in february thanks to the extension of virus containment measures in a variety of cities. but we could see an improvement on that going forward. we have seen the easing of covid restrictions in japan being a not just this week. let's get you to vonnie quinn with the first word headlines. vonnie: french president macron says vladimir putin has refused to halt his attack on the ukraine, convinced the russian president once to control the entire country. he had a phone call with putin on thursday in which putin repeated his goal of ukraine's demilitarization, and denuclearization.

the u.s. and its allies seek to raise asher on president putin and those closest to him. putin's press secretary is among those on the sanctions list, as is one of russia's richest man, and a businessman who is also called " putin's chef." >> names include one of russia's wealthiest billionaires. i am banning travel to america of more than 50 russian oligarchs, their families, and close associates. vonnie:? vonnie:? vonnie: the people's bank of china says it expects the number of high-risk -- to decline. by 2025 the pboc's is 200 lenders in the category, down from over 600 at the peak. the pboc is bowing to persist with its campaign to curb financial risks. high-risk lenders accounted for

1% of overall assets in the banking industry last year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: china is likely to set its lowest annual gdp growth target since the 1990's. take a listen to what some of our guests have been saying. >> hopeful of any major news surprises. >> it has been a very political year. we think there will be real focus this year on profitability. >> unfortunately we are still hearing regulations surrounding the internet and e-commerce. >> the more important upside risk for china is yields stay for -- you will see further rate hikes. >> we believe we could see a bottoming out of growth helped by easing from the pboc. >> they will achieve at least 5%

growth, which seems the bottom line of the chinese government. >> the demand problem cannot be easily solved by just pumping the goodie. >> -- pumping liquidity. >> aiming for the providing of small economic activities. >> there is still a big challenge in terms of how much easing can they deliver. shery: let's bring in our chief north asia correspondent, stephen engle. what will be front and center? stephen: i have covered so many of these. the national people's congress and after that the chinese people's political consultant body, they are running in conjunction with each other in beijing, and there are always different challenges. leave me, china has so many challenges this year to the economy and externally with ukraine obviously, and difficulties with the u.s.. it is really others about this economic target, that is why there has always been debate

about whether they should scrap that economic target, but this centralized plan of the economy, it is like the spokes of the wheel. the provinces all come to beijing and they get their marching orders. the number is 5% to 5.5 percent growth, that is what economists expect the target to be given tomorrow by the premier in his annual work report -- i have my cat here. sorry, excuse me. [laughter] it's ok. i don't want to get distracted, because they get their marching orders to go and deliver that growth rate, right? so if they set the target to hyatt, the party bosses might have to overdeliver, and that could stoke inflation, it could stoke debt. but if you set the number to low, it could set the bar too low for improvement.

it is a delicate balancing act. and that is why we will be looking at that. does it matter? yes, it does matter because of the reasons i just gave, their marching orders that have to be given to the various provinces. haidi: there's a lot of factors that i think president xi even a few months ago wouldn't have wanted to be juggling -- that relationship with russia, the war in ukraine, do we expect that to play any part in the proceedings this year? stephen: tomorrow, li will give his economic work report, a long list of his priorities. later at the close of the national people's congress, we will get xi jinping speaking and he will likely talk about all these challenges -- you have the housing crunch, the regulatory crackdown on technology. and at the backdrop of all of

this is the alliance, the low limits partnership that xi jinping reached with vladimir putin and how that is extrapolated to their support of moscow at a time when moscow has invaded the ukraine. and china's reliance on energy coming from russia. i believe it is about $5 billion worth of energy that china buys from russia every month. so there is a lot of questions that have to be asked. with oil also stoking inflation in china. external situations are always going to be challenges for china. these continued tenuous relationships with the united states will probably be marked by xi jinping as the ongoing external challenges that china has to meet. haidi: i just went to know what the cat thinks, what it's gdp predictions will be.

chief north asia correspondent stephen engle there in hong kong. [laughter] high commodity prices are forcing beijing to shift attention to energy security as well, ahead of that npc opening. let's get over to our reporter. lots to contend with, jim. what will beijing be worried about, given all these supply-chain issues and just supply issues when it comes to commodities, energies, metals, everything really. >> it is a major headache. there are short-term and long-term aspects to the challenge facing beijing, as policymakers gather further annual meeting coming up in the weekend. on the one hand, the situation in ukraine poses challenges, as you mentioned in terms of surging energy prices. as steven mentioned, china gets a lot of its energy from russia. you would expect that supply would continue, that there might be some short-term glitches

given russia's stretch logistics, as they are fighting the battle on the ukraine front. but in the longer term, china is russia's only buyer for its oil and gas resources. so that might take a little bit of pressure off of the price front. but with the oil market prices where they are, that will hurt. the expectation is that we might see a further dampening of china's emissions reduction efforts. we already saw that at the start of the year, they dampened the target for steelmakers, which has been a large part of the reason why iron ore prices rallied strongly. with growth challenged, the emphasis might be of supporting that growth rather than on emissions production. with geopolitical tensions where they are, you would expect that. in the longer term, the upward

pressure on fossil fuel prices tends to give china license to emphasize its longer-term transition to cleaner, cheaper fuel. beijing is focused on getting a reduction of emissions down, they want to build that renewal capacity, they are building on a nuclear also. in the longer term this gives them more impetus for that switch. haidi: it is really becoming challenging for china, isn't it? shery: there were already issues because of the pandemic, the supply chain disruptions, we heard this week that perhaps chinese authorities are telling other state-run banks to try to procure all these commodities, whether it is metals or grains from wherever they can, and prices just continue to soar? james: right, we are hearing that china is trying to buy up everything it can get its hands on in terms of u.s. corn and soybeans, which shows you the

level of concern over global supplies. of course, russia is a big supplier of essential foodstuffs , and china wants to make sure it has got a secure supply of those. i think we will continue to see that. there are also challenges in brazilian supply of soybeans, i know china is concerned about those. on the green side of things, you have pressure there. also, we are seeing that key metal prices going through the roof. china is a major manufacturing nation, that will hurt. aluminum prices, for instance at record highs, the price of nickel and copper, key battery ingredients, an industry that china is already a world leader in, that is going to challenge the profitability of those industries that is another issue that they have to face. shery: james thornhill, our bloomberg metals and mining reporter. coming up, the u.s. has one

million people have fled the ukraine in the first week after the invasion. yael schacher from refugees international tells us what needs to be done, next. this is bloomberg. ♪

haidi: the u.n. estimated that over one million refugees have fled ukraine in the last seven days.

our reporter was at the border with poland, to speak to people fleeing the war. >> i saw a lot of damages. i don't see my kyiv as it was earlier. at the main train station, a border town with ukraine, poland is experiencing an influx of refugees from the war just over the other side of their border. we are seeing people who have come from here and lviv and other pas of the country arrived in poland and the e.u. it is happening in a lot of places around the european union borders with the ukraine. >> very frightened. with my son. my husband stayed in ukraine and tried to fight. i hope that he will via life and that he will come here. i leave in ukraine my

husband, and i come to poland with my daughter and with my friend. we are going to germany today, and i don't know how many times we stayed there. reporter: we have also heard about people who are not ukrainian citizens that were living in the country at the time the war began, discussing the fact that they found it harder to leave the country because they weren't ukrainian. >> it was very challenging because i was not ukrainian, even the guys were pushing us and trying to stop us from entering the trains and allowing the ukrainians to go first. although i am from africa, but i have a wife who is from ukraine. first when we arrived at the border of ukraine, they took my wife and my child away and they told me to wait. so i stood there for about three

or four hours, before they called us to come. it was really, really stressful. it took me two days to get to poland. leaving ukraine was very, very stressful and i didn't want to leave ukraine because all my life is there, my child, everything. we left everything in ukraine. i don't know from now. if the war still continues in ukraine, i don't know what will happen. and now they are telling us you can only spend 14 days here. and i don't know what to do. >> the unhcr has said that any discrimination against people from third countries would not be acceptable under the geneva convention. that they haven't had confirmation of such thing from authorities. here we are seeing people who get hot food and assume cards in order to stay in contact with their families back home and also to try and see what their next steps are, whether they will remain in poland or try to find a new life in other parts

of the european union whether that be just for now, or potentially permanently. >> i hope we will return soon, because i didn't want to leave. i want to be home. but unfortunately, such is the situation. we are hoping that it will end soon. >> at this moment, i don't see opportunities to return. shery: for today's "bloomberg equality," let's take a deeper look into the refugee crisis. our next guest says urgent action is needed to prevent an already dire humanitarian situation from getting worse. joining us is yael schacher, director of refugees international. good to have you with us. give us a sense of what the situation is like for these ukrainian refugees, and the challenge of resettling them. yael: what we have right now, as

the u.n. has said, is over one million people who have left ukraine could not just poland, as we saw, over a half-million people in poland, but also to the other countries around ukraine and romania, hungary, moldova, slovakia, all the countries surrounding. what i am concerned about is there has been some effort to provide, as your correspondent showed, the u.n. high commissioner for refugees has a program to register people and provide them with cash relief and support, those same cards you are talking about, but there are other countries like moldova that don't have the capacity as poland has two receive folks. and then there are concerns not just with people who have managed to leave ukraine, but the still in ukraine, millions of people who are internally

displaced, and as the fighting continues, it becomes increasingly hard to get humanitarian aid into the country. shery: we also heard from that african man earlier that had such difficulty leaving ukraine, and it is really not a uniform group of refugees, right? we are talking about foreigners in the country, women, the elderly, children as well. what is needed right now implement proper policies to help,? yael: right, so there is this issue we just saw of third-country nationals, people from africa and elsewhere who are not ukrainian and leaving ukraine, and they did have problems with extra scrutiny at the border trying to get into surrounding countries, and some of those are being cleared up because of advocacy and trying to say -- that has said that anybody leaving ukraine must get access. i have heard stories of lots of unaccompanied children, as you saw, i mean, a lot of parents,

sometimes if it is just the father, he puts his child on a bus and he arrived in poland and the father may have stayed to help. so unaccompanied children are arriving and they need extra protection. a lot of the elderly are left behind if they don't think they can leave ukraine. that is why i stressed the need for humanitarian aid in the country itself, and figuring out humanitarian corridors to get into ukraine as the fighting ramps up. europe has decided it is going to use a temporary -- sort of grant ukrainians in the european union temporary protection for a year and it can be renewed so they don't have to individually apply for asylum, they can get that attraction and stay. but now they need to be integrated into the country, register their kids for school and find apartments -- but we are talking one million people. and then for the people who are

not ukrainian, they may not qualify for that temporary protection. only 14 days, they may have to apply for other forms of protection on an individual basis, which could be difficult. so there are different populations with different needs and we are seeing. haidi: some of the discriminatory actions against refugees of color in this instant. a lot of aid agencies are calling hypocrisy of this, saying that the e.u.'s reaction to refugees from ukraine has been so different to the reaction and the treatment given to refugees from german and syria. -- from yemen and syria. have you seen this? yael: just a little while ago, denmark was revoking that temporary protection from syrians who are in denmark, right, so we do see that disparity. for example, just two hours ago,

the u.s. department of homeland security here -- i am based in washington -- said that ukrainians in the united states who are here will not be sent back to ukraine, it is not safe to send them back, they will be granted temporary protection here. many of our students and others on visas in the united states that might expire and basically the department of homeland security is saying we will not send them back. well, advocates like my organization have been asking the department of homeland security to give that kind of protection to people from cameroon, ethiopia, so they don't get sent back to their countries, which are in war. and that has yet to be granted by the department of homeland security. so we do see disparities based on, if you are a muslim refugee from syria you may not be treated the same way if you are an african in the united states you may not be treated, given that same temporary protection

as someone from the ukraine. haidi: great to have you with us, yael schacher deputy director for the americans in europe at refugees international joining us. thank you. don't miss an exclusive interview. the vice president for global business will discuss the future of female-led businesses and women in the metaverse.

shery: we are counting down to the start of trade in tokyo. some of the stories we are watching today in japan, prime minister kishida vowing to extend virus restrictions until march 21 as omicron continues to linger also further border controls. honda is raising $2.8 billion from green farms for the first time, joining ford in tapping sustainable finance to fund a push to electric cars. and the bank of japan is ramping up its messaging on higher wages . over in south korea, officials will announce whether they plan to revise social distancing measures. the trade ministry is going to say that korea will receive an exemption from the u.s. export controls on russia. and courier will extend

fuel tax cuts. haidi: coming up in daybreak, we speak with the former australian foreign minister about ukraine. this is bloomberg. ♪

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shery: welcome to "daybreak: asia." haidi: asia's major markets have just opened for trade. asian stocks may transform as traders await key u.s. jobs data and the war in ukraine. they will be discussing options for the u.s. and allies, along with julie bishop.

china's political elites gutter in beijing for key meetings to set policy and priorities for the year ahead. shery: we are seeing japanese and korean stocks coming online to the downside with the nikkei lower by energy and tech stocks. this as we continue to watch for the repercussions of the russian invasion on ukraine. we are watching asian automakers that could follow u.s. carmakers lower on constraints about supply chain pressures. this as the japanese yen continues to weaken towards that 115 level. we continue to see the yen's havens status being challenged. the 10 year yield is trending lower following treasury yields, which are a little mixed, but the 10-year yelled did fall. take a look at the kospi because it is down 0.5% at the moment

after reversing those gains we saw in the previous session. we had heard authorities assuring markets that they will fight to stabilize prices if needed, but this as we continue to see that risk off sentiment rise and the korean won continuing to weaken against the u.s. dollar, well past the 1200 level. we are watching for perhaps some of those reopening trades as well as we continue to hear that perhaps korea will be easing more of those covid restrictions. haidi: and also, we are seeing that return to some of the flocking to havens. equities in this part of the session looking pretty muted. australian stocks down by 0.5%. some of the biggest losers are tech and energy, leading those declines. we are seeing gains when it comes to the coal producers as well as gold seeing gains.

this as we see new zealand up by about 0.5%. we had the warning from the finance minister saying we could the slower than expected economic growth combined with faster than expected inflationary pressures. the kiwi dollar is holding steady at the moment at just over 68 u.s. cents. futures trading at the moment, this is what we are setting up for on jobs day, 0.3% higher. so much focus on where we go with the crude price. oil headed for the biggest weekly surge in two years as we have prices sitting at the highest since 2008 as well. we are seeing the new york crude trade swinging back to gains. gold, we are seeing a flat session, but some of the gold miners around the region seeing gains this morning. shery: let's start with the latest developments from ukraine. call with french president emmanuel macron ahead of more

sanctions from the u.s. a reporter has the details from washington. let's start with the call between president putin and macron because it seems that president putin is doubling down on the invasion of ukraine. reporter: we are heading into the second week of this invasion and i think a lot of folks were looking at the talks that were happening between the ukrainians and the russians today and some other signals and hoping against hope to see some signs of an offramp for putin or a cease-fire of some sorts, or just any kind of glimmer of hope. i think that putin shut the door to that at least for the time being in this call with macron, where he said basically everything is going according to plan, we are not changing anything, we are going to proceed. macron's read of that was basically was that things are going to get worse before they get better, and that is also the read in washington. haidi: in the meantime, we see

more responses from the biden administration in terms of turning the screws on that inner circle in russia. reporter: absolutely. that is the hope right now, that if you can really make the folks that are close to putin hurt, you could really make them feel the pain not only in russia but for their holdings they have a broad, perhaps even going -- they have abroad, perhaps even going after their yachts, planes, personal wealth, that they will lean on putin to reverse the actions he has taken so far. that is kind of an open question at this point. going back to that call, it seems if that is what is going to happen, it hasn't happened yet. i think there is still a lot that remains to be seen on that front. haidi: daniel flatley in washington.

russia is being cut off from global markets. russian equities shunned by index compilers. meanwhile, s&p joining moody's and fitch for downgrading the country's credit rating. it is sitting at triple c minus, just above default grade. shery: our next guest says with what is going on around ukraine, it is good to see the west shaking up divisive politics and criticism, but it is also bad when policies are implemented in haste. let's bring in our guest. it is good to have you back. what sort of unintended consequences could we see the fallout from these sanctions, and how would that affect market? guest: i am thinking back to 1998, and i think this is really looking more and more like that, where that was the last time

russia defaulted. what we need to remember is that banks' relationships are complicated webs. if one payment can't get made and another can't get made and another and another, the knock on effects are huge. it is like if you put your back out or have a torn muscle, and you realize your whole body gets thrown out of whack by that one thing. somebody i think is going to get left holding the bag because very few people dare to buy russian goods. russian oil is not finding buyers, even though there is 20% discount. it is not that we can't buy russian oil, but shippers and insurance companies do not want to get caught up in the sanctions somehow. i think an event like lctm is possible, and that is why we think we are in the middle of a cyclical bear market, exactly like 1998 was. shery: i understand your

back example too well. given the knock on effects, how do you protect yourself? is there a way you can switch your assets and allocations in order to hedge for this? guest: i don't think you can hedge, but what we are advocating is moving some of the blue-chip technology exposure that has done so well over the past 10 years into commodity companies, because even if inflation is going to come down it is not going to go back to pre-covid levels. there will be a scarcity of commodities in this uncertain word. biotech we like. we think it has great value, back to pre-covid levels. private equity is the kind of thing you have to hold for the long-term so you don't panic in times like these. i also say equities and economies that have a strong track record in defending property rights, that will become more important. shareholder value.

that will take you to places like switzerland, sweden, singapore, also the united states. haidi: mark, moving to china, the mpc beginning this weekend. are you expecting any big stimulus news coming out of it, or is it just kind of more of the old playbook, infrastructure, government financing vehicles? guest: just as you said. not expecting much stimulus and the special bond isn't un's -- the special bond issuance, we do see that. people who are looking for big money of terry and fiscally -- people who are looking for big monetary and fiscal easing will be disappointed by that. [no audio] haidi: mark, i am wondering in

terms of some of the pressures that are really doubling down on beijing at the moment, where do you see the priorities coming out of the mpc, and are any of these things investable? it feels like investors have been pretty disappointed in the level of stimulus that have come through so far. and the systemic issues domestically that remain problematic, like the property sector. guest: i think they are walking a fine line between trying to move toward prosperity, a more balanced society in terms of inequality, and at the same time allowing a certain amount of economic growth. it will be interesting to see what the gdp growth target is for this year, if there is one. we don't have a strong view on that but i expect 5.5% is unrealistic. between the common prosperity and the gdp growth, my sense is they are leaning more toward the common prosperity. inherently, it is great for people.

it means there will be nice parks and clean air and more free time. but it will also mean lower return on equities, so the chinese stock market over the next 10 years, it will not be like the nasdaq was over the last 10 years, or the chinese stock market was itself over the last 10 years. it will look more like the nikkei or the dax, and reflective of a more communitarian society. shery: always good having you with us. let's take a look at some of the stocks we are watching. panasonic is going to purchase land to build a plant to build a battery. this is according to an nhk report. nissan is raising bonds to transition to electric vehicles. we are watching the supply chain pressures. we saw in the wall street session that u.s. automakers were under pressure as well,

given the worsening situation around the ukraine war. we are also watching nissan. they are saying they are planning to appeal the tokyo court judgment and is facing that supply chain pressure on asia's automaker sector as well. we are watching the reporting by nikkei that japan will be discussing the won project. that is an oil and gas project. itochu are stakeholders according to nikkei, who is reporting the government will assess the involvement of those companies. let's get to vonnie quinn with the first word headlines. vonnie: fed chair jerome powell says the war in ukraine may accelerate china's move to develop alternatives to the dollar dominated international payment system. he was responding to a senator's question on how beijing might view u.s. led efforts to isolate russia's economy. in his senate testimony, powell reaffirmed the fed's plan to raise interest rates this month. >> i would be recommending and

supporting a one quarter of 1% increase at our march meeting if we do not see inflation behaving the way we expect it to behave, which is to peak and come down. if we see inflation behaving in ways not consistent with that, we are prepared to raise more than that. vonnie: china is likely to announce its lowest growth target in more than three decades. the annual national people's congress starts saturday, with a speech outlining the main economic goals for the year. the centerpiece is the release of the full gdp goal, with most economists seeing as between 5% and 5.5% this year. meanwhile, the people's bank of china says it expects the number of high-risk next to decline in the coming years. by 2025, the pboc sees 200 lenders in the category, down from nearly 650 at the peak and 319 at the end of 2021. the pboc is vowing to persist in

its campaign to curb financial risk, though it's as high risk lenders account -- though it's as high risk account for 1% of the industry last year. china's central banks as domestic bitcoin transactions have plummeted to 10% of the global market. it use to account for 90% of the global trade. beijing has been intensifying its crackdown on cryptocurrency mining and trading over the last decade as part of the pboc's broader efforts to regulate its financial are gets. -- regulate its financial markets. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery ? shery: we have breaking news. we are hearing from the ap that russian troops have begun shelling europe's largest plant. this is according to the ap, citing the spokesperson for the plant, saying on a video posted on telegram that there is a real

threat of nuclear danger. they are demanding they stop the heavy weapons fire. the plant accounting for about one quarter of ukraine's power generation. this report is coming from the ap, citing the spokesperson for the plant. there is fighting in the city, accounting for one quarter of the power generation. coming up on "daybreak: asia," our guest shares the economic policies that will be discussed at china's national people's congress. that is later this hour. ahead, julie bishop joins us to talk about the impact of the ukraine war and australia's role in it. this is bloomberg. ♪

shery: let's take a look at how futures are opening in europe. we see downside pressure after europe stocks hit the lowest since may on concerns of the impact of the war in ukraine. u.s. futures are accelerating losses, within the s&p futures down 0.3%.

that flight to safety being seen with treasuries extending gains, with the 10 year yield continuing to drop below 1.8%. haidi: at a staff meeting thursday come of the leaders of australia, india, japan, and the u.s. implored countries to assess the implications of putin's actions on stability in the end up pacific. our next guest was australia's first female prime minister. such a pleasure to have your with us. we are looking at the notes of the call between president putin and emmanuel macron. he is determined to achieve the objectives of the invasion, which includes the removal of the government in ukraine. as one of the handful of people who has actually had face time with putin, what do you make of this? is there a way to be able to engage with him? guest: now that we are in this

second week, i believe things will only escalate as president putin gets closer to his endgame, which is to occupy ukraine and remove the government and replace it with a more pro-russia administration. i have no doubt that president putin will not capitulate, he will not withdraw. he will continue through to the endgame, which is the occupation of ukraine. militarily overpowering a country is one thing, but occupying a hostile people is quite another. and the people of ukraine have demonstrated that they are defiant, they are prepared to fight, and they are prepared to resist russian aggression. haidi: does a failure in this instance also mean a further deterioration of credibility for u.s. diplomacy and its allies within our part of the world?

guest: i believe that the majority of nations in their part of the world have joined with the united states, european union, and nato in condemning russia's invasion. i believe that nations that would otherwise have been non-aligned have come onto the side of the united states and the west's condemnation of russia. we have seen countries impose sanctions. australia, of course, but also japan, south korea, even singapore, nations that otherwise might not have been involved in a conflict halfway around the world have expressed their horror at this return to a might is right ideology, where a more powerful nation like russia believes it has the right to invade and occupy a less powerful nation. and it is this breach of every norm expected of nations. it is this of front to the rules based order that i think will

actually boost support for the united states' view of the world, when you see over 140 nations condemning russia and supporting a resolution in support of ukraine at the u.n. general assembly. you appreciate that many nations are now weighing up which side of history they want to be on. haidi: china is a big missing piece in that puzzle that we have been talking about. clearly, a difficult balancing act for president xi. but what would they be watching out for, and how can countries like australia, which has had a very difficult relationship with beijing over the past few years, how can they be better engaged? guest: clearly, china is one of the keys to the success of sanctions. the sanctions only work if they are universally applied, and currently russia's energy sector is excluded from the sanctions,

and china of course has not supported the sanctions regime and is russia's largest two-way trading partner. so there will be a lot of pressure on china to consider how far it should go in tying itself to the fate of russia's invasion of ukraine. i would expect they will be watching very closely how an nato response, how the united states response, because of course china has always been very sensitive to issues of sovereignty, territorial integrity, and noninterference in the domestic affairs of another nation. everything russia is doing is antithetical to what china has maintained his basic principles. it puts china in a very difficult position and i think it will be increasingly on comfortable as more nations continue to impose sanctions and condemn russia's actions. shery: we keep hearing this analogy about russia and ukraine with china and taiwan.

do you think that applies? guest: i don't believe it is a case of comparing apples with apples. obviously, there are different considerations. also, the fact that ukraine is not a member of nato, whereas taiwan does have an agreement with the united states, a much closer alignment with the united states. i believe china will be watching very closely what happens because clearly if it has in its long game a view of taking over taiwan, it would be watching very closely to see how nato, u.s., u.k., europe, and countries in the region have reacted to this invasion of ukraine. shery: when will we see sanctions starting to deter president putin? because we continue to wait for perhaps something on the restrictions front.

germany seems to oppose a ban on imports of oil and gas from russia. guest: but the attitude seems to be changing. i noticed the government of italy have said they could live without russian energy imports. i think we may see an increasing number of countries looking at alternatives, diversifying their energy supplies. but it is also in other areas. i am the chancellor of the australian national university, national higher education institution in this country. we have announced we are suspending ties with russian universities and russian institutions, and other institutions around the world will follow. this will isolate russian academics, russian students, and it is deeply unfair to them, but as this increases, more and more people in russia will understand the consequences and the implications of their leader's

invasion of ukraine. shery: the going tough on china issue has been a political issue, a campaign issue now in australia at the moment. do you think the link which has been too aggressive over the past -- do you think the language has been too aggressive over the past few weeks, and how do you turn the page on this relationship? do you think a change of government could actually do that? guest: australia and china have always had a difficult relationship. we have a very different worldview, yet china is the largest two-way trading partner. it is the first time in their history that the largest two-way trading partner in closest defensive strategic partner are in economic conflict with each other, and this has placed australia in a difficult position. china has become increasingly assertive and even belligerent in the economic scene when it comes to australia, being put in

the economica beat faries because of -- economic beat freeze, of which the chinese authorities disapprove. we were even given a list of 14 areas where china disapproves of australia's actions. no self-respecting sovereign nation will change its behavior at the behest of another nation without cause. so, the relationship is tense, but i believe over time both the australian government and the chinese authorities will see that we do have matters in common. there are matters of mutual interest and benefit, and i think over time the relationship will improve. shery: former australian foreign minister julie bishop joining us from adelaide. we appreciate your time. still ahead, to other women with plenty of influence. we will be speaking to them.

these developments continue to occur going into the second week of fighting. this is bloomberg. ♪ as a small business owner, your bottom line is always top of mind. so start saving with comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. so boost your bottom line by switching today. get the new samsung galaxy s22 series on comcast business mobile and for a limited time save up to $750 on a new samsung device with eligible trade-in.

>> not that you hope for any new surprises. >> that becomes a very political year. we think there will be real focus on key stability. >> we are still hearing revelations that are surrounding the internet and e-commerce. >> the more important risk -- upside risk is you will see further rate cuts. >> we do believe we could see a bottoming out helped by easing

from the pboc. >> they could achieve 5%, which seems to be the bottom line of china's government. >> the problem cannot be easily solved by probability. >> any easing is more likely to be aiming for providing a flaw on economic activity. shery: bloomberg tv guests discussing their views on china's national people's congress, which starts this weekend. let's bring in betty wang. good to have you with us. there is really a lot we are watching from the npc this weekend, but what will be top of mind for you? guest: i think on top of my mind is the ground target. the market has tried to downplay china's target for the past few years, but for specific people this year, the growth target will reflect the policymakers bottom line in terms of how

stabilized they expect the economy to look like, especially considering that china will have a difficult transition later in the year. there is a 5.5 percent growth target. that will reflect that the government still cares about growth momentum. of course, that can lead to monetary and fiscal policies that will be covered in the report. so these will shed light on how government will secure that. more important is structural reforms, whether there is any relaxation on the energy sector and property sector policy. shery: what about relaxation of the covid zero policy? what is your assumption right now to get to that 5% level growth? guest: in terms of the zero covid policy, i don't think there will be any change in the near term, especially from

china's perspective. indeed, it has impacted china's consumption and sectors. i think we should not overestimate the impact of the zero covid policy because this kind of policy has become more targeted, compared with back in early 2020, which means strict areas under control can be very specific. that means activities outside this area will not be impacted. on the other hand, given that travel and tourism is discouraged, the two things are domestic consumption and traveling, and tourism. haidi: when it comes to the growth, we hear they are going back to these local governments to spur infrastructure investments.

does this sound a lot like the old playbook? and what does this mean for debt burners and deleveraging campaigns? guest: indeed. i think whenever china was thinking about using infrastructure, there is always discussions or speculations if china will go back to the old pattern of boosting growth. but i think given the current economic situation, there is no quick way to fix or secure a certain level of growth. so that is why i think especially for this here china would like to bring forward a plan to secure certain growth momentum. having said that, there is a difference from what china did in the past in terms of boosting infrastructure investments. this time, we believe that china's intention is to secure

or prevent the economy from further declining instead of providing an aggressive stimulus. hopefully, that will help china to avoid entering another round of aggressive extension in terms of rates. shery: as -- haidi: as you say, there is no quick or sustainable way to ensure getting that growth back up. we have been talking about this for decades. should they be abandoning the gdp growth target? guest: in the near term, especially this year, i think the policymakers still care about growth momentum. it is closely related to market volatility. does that change? i do think this year that growth and volatility are the top priorities. getting into a much longer time period when china gets summer spite and gets back to the --

gets some respite and gets back to the targets in the future. haidi: betty wang joining us. let's take a look at what we are seeing when it comes to the risk asset part of things. we continue to see signs of escalation in the russian invasion of ukraine's fighting, going into the second week now. we are hearing reports from the associated press of a nuclear plant in ukraine coming under attack. we are also hearing of these for their sanctions and actions being taken by the biden administration against key wealthy individuals in russia as well to try and really increase the pressure not just on vladimir putin, but also those within the kremlin's key circle. we are seeing a little bit of downside when it comes to trading in dollar-yen. that selloff in the yen has been quite surprising in recent days.

it seems to have fallen out of favor against some of the other safe haven asset classes, as a safe haven of choice. we are seeing a balance when it comes -- we are seeing a bounce when it comes to gold. gold miners in the equities trading session as well. we are seeing quite a bit of downside when it comes to the nikkei 225. tokyo down by over 2%. we are hearing about the extension of the covid restrictions. at the same time, lessening restrictions when it comes to the thought of reopening. the kospi is seeing quite a bit of downside as well. in australia, we are seeing tech and some of the big miners in energy leading the biggest losses right now. shery: you mentioned the shelling of the nuclear plant reported by the ap we are now hearing from the ukrainian foreign minister, saying that a fire has broken out at a nuclear plant. we heard from the plant's

spokesperson, cited by ap, saying there was shelling from russian troops. we continue to watch for more details as the markets are already reacting with all of those risk assets moving. let's get to vonnie quinn with the first word headlines. vonnie: french president emmanuel micron says vladimir putin has refused to halt his attack on ukraine. macron held a phone call with putin on thursday, in which putin repeated his goals of ukraine's demilitarization and neutral status, saying they would achieve it no matter what. the biden administration says it will impose visa restrictions on several dozen people. this is the u.s. and allies seek to raise pressure on president putin and those closest to him. putin's press secretary as among those on the sanctions list, as is one of russia's richest men and a businessman, who is some

times called putin's chest. >> we are including one of russia's wealthiest billionaires. i am banning travel to america by more than 50 russian oligarchs, their families, and their close associates. vonnie: georgia is asking the european union to begin membership. they joined a bit earlier this week by ukraine. both nations formally signed a request in brussels so the procedure can last more than a decade. eu leaders will discuss at a summit in paris next week. the european union wants to remove russia's most favored nation status at the wto. that would increase costs via tariffs for any eu companies still doing business with the country. the bloc has already adopted a range of sanctions against russia and of the latest move could hit more than $100 billion

of exports to europe. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery? shery: coming up next, the selloff in southeast asia has deepened from more than $20 billion. our interview with president ming ma is ahead. this is bloomberg. ♪

>> there have been physical, almost face-to-face confrontations between the security forces acting there and the local populations. as you can imagine, it is a delicate situation where anything could happen. shery: iaea director rafael mariano grossi. he spoke to bloomberg before the latest report that russia is now shelling a nuclear plant. gold has spiked on the report. we are seeing it approach that $2000 level. we had seen gains in the metals

space as well, with a nickel now seeing its biggest backwardation since 2007. crude continues to rally with wti now above $111 a barrel. we had seen it reach a 14 year high earlier, $116. but with that risk aversion, you can see it in the treasury's space as well, the five year yield dropping to around that 153 level. the 10 year yield continuing to drop below 1.8%. we hear reports of that shelling leading to that risk aversion move. haidi: we are swinging back to that safety. commodities on track for their best week in five decades. let's bring in su keenan for a

closer look. oil has surged by the most in two years, forecast at $185 now. su: that is from j.p. morgan. they are saying if supply disruptions out of russia persists, we could see brent crude futures hit 185 dollars by the end of the year. to 66% of russian oil has -- you are looking at everything surging, and that is making it the best week for commodities in terms of sharp gains in almost five decades. let's go to the oil chart. a lot of green on the screen because oil has been leading the wild ride. it is green once again. a couple hours ago, oil was in the red. it had shot up. let's look at the oil price, if

we can. oil pulled back a bit on signs that those high-stakes talks involving iran nuclear could ramp up, and that would increase the oil out on the market. oil shot up to $116, then to $109, then a hundred $12. brent crude has surged to $120. then pulled back on the iran talks. it is the volatility that is so unusual to continue day after day. years ago, i used to work on the nymex trading floor. also, you have got natural gas coming out of europe, which has really been on a tear. the fact that agricultural commodities are week, which is

normally overshadowed by corn and soybean, it has taken center stage. shery: metals also on that tear. su: there has been a scorching rally for metals, and it is the same story, supply constraints keeping the raw materials that normally come out of russia from getting onto markets. there are predictions it could be on energy smelters. haidi: su keenan there. we continue to watch the risk off reversal that was in the markets. they continue to follow these comments from the russian foreign minister, saying that troops firing on the power

station is happening. he is repeating what we have heard the last few hours, which is russian troops surrounding zaporizhzhia, the nuclear power station, that we are hearing is coming under attack. we are hearing from ukraine's foreign minister, saying firing is being seen at the nuclear plants, that a fire has broken out at that nuclear plant. the russian army is firing from all sides upon that nuclear power station. it accounts for about a quarter of the country's power generation, and we have been hearing reports locally that the shelling had begun early on friday, shery. shery: take a look at equities prices, especially when it comes to futures in europe, because we had already seen and hit the lowest since may. futures now accelerating losses at the open. we have seen a recent geopolitical tensions being felt across the travel and leisure

leisure, retail stocks being the biggest decliner's. mining stocks declining given the surge in commodities prices. take a look at u.s. futures as well. the s&p futures now down more than 1%. we have not seen this sort of drop in a while in the futures space, as we continue to see treasury yields also sinking. shares in a grab also continuing to fall. this, of course, as we continue to to see their latest earnings report. we will bring you more on this. they saw about 37% on thursday, adding to what has been a torrid week with reporting losses of more than $1 billion. president ming maa saying 2021 was their best year yet, as we continue to see all of these markets really feeling the downside pressure. haidi: so much pressure when it

comes to these corporate as well, at a time when the earnings outlook remains very uncertain given we are still dealing with coming out of lots of restrictions and the slowdown we are seeing in the pandemic as well. we are seeing these fast developments when it comes to the shelling of europe's largest nuclear plant, as well as the continuation of fighting into the second wake.lots to come. this is bloomberg. ♪

haidi: let's take a look across risk assets. we can see the markets turning when it comes to this flocking toward haven assets. take a look at that move when it comes to treasuries, as well as regional bonds. we are hearing the very latest when it comes to the shelling of europe's largest nuclear power plant. we heard earlier reports that we had russian shelling that started early on friday, but the foreign ministry of ukraine kuleba confirming russian forces are firing on that nuclear plant, as well as adding that a fire has broken out. earlier, the national agency confirmed the russian military is outside the gates of russia and ukraine's biggest plants. we are waiting for the latest reactions. take a look at oil.

regardless of what happens through the course of this day, it has had a wild week, the biggest weekly surge in just about two years. we are seeing prices over 20% this week after russia was slapped with these increasing financial sanctions. we are also seeing the uptick when it comes to gold. a lot of these risks when it comes to the fed's rates, pulling back into the background now with what we are seeing in terms of the second wake of fighting -- second week of fighting. we are seeing the reaction when it comes to the bond markets. shery: the bond space, the equities space. take a look at asian stocks. the nikkei losing more than 2% at the moment. we are now seeing the japanese yen strengthening a little bit, but it is interesting that the japanese yen is not moving that much. the haven status continuing to be challenged with investors

selling the currency, despite all this geopolitical risk. we do have the bloomberg dollar index continuing to rally, despite all this risk off sentiment. the kospi is also down more than 1%, really reversing the gains we saw in the previous session. the korean won is taking a beating. really past the 1200 level against the u.s. dollar. the asx 200 in australia down 1.5%. take a look at european futures because the futures space is also taking the brunt of all this risk off and flight to safety. the futures opening in europe at the moment accelerating those losses. remember, they had already fallen to that main low, given the intensifying tensions around the war in ukraine. russian forces already earlier today, we had heard they were firing missiles at kyiv and bombarding cities across ukraine. now we are seeing futures continuing to sink, haidi.

haidi: this as we continue to hear these stories of guerrilla warfare and the kind of leadership that is being shown in ukraine to rally the troops and the people who remain in ukraine as insurgency. of course, we are getting more reports of the russian invasion making more progress across major cities. now these reports of the shelling of this major nuclear plant in ukraine, it being on fire, shelling from russian troops. we are seeing this classic risk off play. look at s&p futures, up by over 1%. nasdaq futures looking negative as well. dow jones following the trend. asian bonds, treasury futures catching up after these reports of that nuclear power plant in ukraine being shelled and that fire. we are seeing it when it comes to gold and yen. we are interested to see what happens to the u.s. dollar

because that has been the favored choice for traders even over the japanese yen in terms of times when they have been flocking to these havens. we can see even as there have been periods of calm, these developments on the ground with the russian invasion are still moving markets in a very big way. shery: i am interested to see what is happening in the reign bond space because we continue to see the global bond rally, with the 10 year yield in japan falling towards that 0.15% level. when we talk about them pushing toward that level of tolerance in the upper level of the boj, given this selloff we have seen before. but this flight to safety being felt in the sovereign bond space. we are also seeing the 10 year yield in australia falling toward that 2% level, haidi. haidi: all of this as we continue to monitor these new headlines coming out of the russian shelling of the major

nuclear plant zaporizhzhia. the huge nuclear power plant there in the ukraine suffering fire after shelling. we will continue to watch that for you as well as getting all of the reaction across the markets. coming up, we are speaking about all of this with the former deputy secretary general. ♪

>> 9:00 a.m. in hong kong, beijing, and shanghai. i'm david ingles. yvonne man will be joining us in a couple of seconds. markets turning completely risk off assets. ukraine saying russia has started shelling a major nuclear path -- plant. pooling undeterred by sanctions and a refugee emergency.