dani: good morning. we are just gone 6:00 a.m. in london. this is "daybreak: europe." ukraine's is a nuclear plant in the east under attack by russia. president zelensky calls on moscow to halt the fighting. russia's stock market will remain closed in the country's longest ever shut down. plus, commodities are on course

for the most stunning weekly surge in 60 years. oil has its biggest advance since 2020. we made it through friday in a week that has felt like months, and the tail risks continue to come more sharply in focus. ukraine sang one of their nuclear plants coming under attack by russia. we will get our reports from those on the ground shortly. it does look like it is contained, but it is a reminder of perhaps how poorly we are able to handle these tail risks. echoes of a fukushima, saying the real lesson in japan's incident at the time was to show us how bad we are at calculating tail risk from such an event. the jolt in the market was clear and it is still filtering through. it continues a trend of ugliness we have seen throughout most of the week. some of the biggest effects of the stock market were in europe, as you would imagine, down more than 2.2% when it comes to the euro stoxx 50 futures.

i want to point out that small caps are the ones who are underperforming today. it is this recessionary risk that markets are still trying to play through as well. let's look at the boards because part of what is causing that recessionary risk has been this surge in commodity prices, heading for the best week since the 1970's. brent crude moving up 0.5 percent off some of the highs of the day from $111. euro extremely weak as well with the dollar. the haven bid and the perceived difference between what the fed and ecb is going to do. also getting a bid for bonds filtering through, coming after this news from the nuclear plant attack. still lower by 4.5 basis points. bitcoin not acting as a haven. some of that perceived flight in russia not necessarily playing through, so we are looking at bitcoin just above $41,000. as i was saying, europe's largest nuclear power plant in

eastern ukraine has come under attack from russian showing, raising the stakes as forces bombard cities across the country. bloomberg's aggie can trial is at the border. give us the latest on these attacks overnight. reporter: as you said, zaporizhzhia nuclear plant has come under fire. the fire that broke out at the plant has been burned out, has been extinguished. but what is important to note is this is evidence of the real serious threat that ukraine's 50 nuclear reactors hose in a war through the country. zelensky himself points to this, saying this was a wake-up call to europe, that they are realizing any such explosion at a plant like that could have serious consequences for the rest of europe and not just

ukraine. dani: we should also point out the iaea saying it will hold a briefing on this nuclear power plant at 10:30 cet. you are also at the polish-ukraine border, monitoring the humanitarian crisis taking place as well. what is the situation now? reporter: yes, dani. we are still seeing people come over this morning from the ukrainian side of the border over into poland. it is clear that as well as the 500,000 more people who have come over to poland from ukraine that there is also a need from the ukrainian side to secure humanitarian corridors within ukraine. this was a key concern for them in the talks they help with the russian delegation yesterday, and it is clear that places like kyiv need to get humanitarian aid in, in order to make sure the people still stuck in ukraine can remain safe and secure.

dani: thank you so much for your excellent reporting all week this week. that is bloomberg's aggi cantrill. now to the u.s., which says they will sanction eight wealthy families as the west works to raise pressure on the russian president and those closest to him. let's bring in bruce einhorn. more sanctions coming from the u.s., but i really want you to take us through the latest on oil sanctions and the likelihood the u.s. does that, because there seems to be inviting in d.c. -- there seems to be in fighting in d.c. reporter: we are hearing different things from different senators on capitol hill. we know that senator joe manchin, the democrat from west virginia, teamed up with lisa murkowski, republican from alaska, to propose banning purchases of russian oil, other russian energy.

joe manchin, the most conservative democrat and murkowski, a republican. we know that elizabeth warren and joe markey, the senators from massachusetts, have proposed some other things. there is certainly no consensus on capitol hill about this. we know important senators like mitt romney, the republican from utah, chris murphy, a democrat from connecticut, they have expressed skepticism about this and whether it would actually hurt americans and american consumers at a time when oil prices are already high. the biden administration is not on board with this proposal. but we will see what happens because it is possible that there will be more support going forward. so, it still remains to be seen what will happen with whether the u.s. will impose that sort of sanction. dani: i also feel like yesterday

everyone was really encapsulated by this question of russian sanctions or yacht seizures. what is the latest there? reporter: there are additional sanctions the u.s. announced, targeting wealthy russians, including their press secretary for vladimir putin, as well as a metals tycoon and the ceo of trans naf -- transneft. it is something that is similar to a strategy the eu used. the sanctions are going to applied not just to these wealthy russians, but also their family members. that is important because often times people have used their spouses, their children, as ways to avoid sanctions. this administration is

determined to stop that. dani: bloomberg's bruce einhorn. we have seen a massive reaction to the latest news flow out of ukraine, as we have this week. let's get to bloomberg's juliette saly in singapore, who has the breakdown for us. juliette: absolutely, dani. classic risk off as you would expect. these lines broke around 8:30 our time in singapore and you have seen bigger declines the likes of the u.s. 10 year yield falling 15 basis points. that has pared down, down by four basis points. it is expected to flow through to your session in europe. we have the dax index futures suggesting a loss of 2%. investors will not want to take on risk ahead of the weekend. let's have a look at how this is showing up in the key money market gauges. it dropped 10 basis points

during thursday's session. it is up to a spread of 29.4. the widest we have seen is may 2020, showing anxiety and stress in these markets. we have the fed meeting in 11 days that will force them to be even more patient. this is an interesting chart. i will try to give it some credit here, but it is really good to read the mliv blog as well because this is comparing trading volumes. we have not seen trading conditions this bad except in 2008, when we were at the height of the global financial crisis and the height of the pandemic in 2020. both of those times, we did see a bump, so are we in for more volatility followed by a sustained rally? dani: really fascinating. credit suisse points out that is the second order effects of potentially missed payments from russia filtering through the entire system. coming up, commodities are on a

tear and a supply shortage fears grip markets. we will talk implications with our guest. then, before i let us go to commercial, we will talk about msci and ftse russell. blackrock has stopped buying russian securities. we will look at the indications of those moves. -- we will look at the implications of those moves. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." commodities have been rising rapidly as russia's invasion of ukraine royals markets and sparks fears of supply shortages of energy, metals, and grains. it certainly has the potential to be a drag on growth and inflation.

as the thought is deepening, the prospect of recession rises. as we get these big rallies and the prices -- in the prices of commodities, they have been followed by a recession. not every recession is led by 50% rise in crude. every 50% rise in crude has led to recession. where did i get this chart from? i got it from the brilliant ben emmons, managing director of global microstrategy. as fate would have it, we have ben with us. so great to have you on. i thought this was fantastic because it is a pretty clear warning sign. how to heart have you taken this warning sign on the potential of a recession? guest: good morning, dani. we are surely taking it to heart because it is a really strong historical example of how the energy shock ultimately leads to

a slow demand and a standstill of an economy. a good predictor of recession , this energy shock is as predictive. both are coming together now. the curve is at 28 basis points. maybe by the time the fed meets, it will be close to inversion while we are having this shock in commodities. i think you can take comfort that, yes, the signals of a slowdown ahead of us are clear. dani: 26 basis points. that is at pandemic levels. what does that mean for the fed? clearly, powell has broadcast it will be a 25 basis point hike, but are they at the point where they are not even behind the curve, they just have lost control of the inflation story to where we get stagflation?

guest: that is the common question asked these days. in strict definition, we have stagflation because employment is tight. you would have to see it rising unemployment rates with rising inflation to beat the 1970's definition. what people are worried about is the economy in this major economy to suddenly stagnating with the shock in energy and food prices. that may be coming. then we have to deal with the stagflationary environment. that is indeed very difficult to combat. you can hide rates, but not as much because of a stagnating economy. at the same time, you deal with inflation. it is still into expectations that it stays stickier for longer. they have been right that inflation would hit 7% or higher since the pandemic broke out. we are already in this

environment of stagflation that will maybe be lasting into next year. dani: that is the story in the u.s. let's contrast that for europe and what the ramifications will be for the euro. if you have an ecb who is on standstill -- i was reading your last note, and the phrase parity between the dollar and the euro slipped into what you are writing. we are looking at the risk reversals in the euro. that has slid to parity. how likely of a reality is a-dollar parity? -- is a euro-dollar parity? guest: when you listen to one of the ecb governors, he phrased a message that i think is in the mind of all of the ecb members now. you have to get a clear side first on this crisis in ukraine before you can make decisions, because if you make decisions too quickly you can damage the

economy too quickly. the market knows that the ecb has to stay on the sideline for some time before it can lift off, while it is facing, just like the fed, rising inflation, rapidly rising inflation. numbers came out recently that were much more than expected, and the gas prices in europe show it. gas and electricity will be the impact on cpi in europe. the ecb sitting sidelines means nothing else that the euro currency will depreciate against the dollar, and we are seeing it in the dollar index today. i would expect the dollar to probably hit 100, which means the euro will be one below 110. dani: these are a lot of warning signs we have been going through. for those who are worried, where do you want to play this in terms of havens? what will win out if we are looking at euro parity,

potential recessionary risk? guest: not an easy question to answer, but i am of the view that if you look at latin america and parts of asia where you have monetary policy being very preemptive towards inflation last year, that is now bearing fruit. to some markets like brazil and chile, they have been up so far. there continues to be an opportunity to be in busted -- to be invested in bonds, which are as high as the stocks with far lower multiples. secondly, in asia, there's countries that are benefiting from the commodity boom, particularly in metals. i think about the philippines or indonesia and malaysia. those types of areas or regions could be an alternative to the european exposures you have currently. that is not to say europe is done. there is opportunity there. it is a reason -- region that

will get on greater traction because of the adjacent conflict. at the same time, we have to keep in mind what is happening in the u.s. the technology and mid small-cap area will be very much in demand, and that probably continues to diversify against geopolitical risks. not fully in treasuries because the federal reserve has to hike rates. dani: what a whiplash that will be, considering that we have seen this play into bonds. you have to stick around with us. that is ben emons, medley global advisors managing director of global microstrategy. coming up, fighting inflation. the central bank's rate hiking path. we will hear from the fed chair next. we've also talked about funding stress in this market. this is bloomberg. ♪

>> we are responsible, we are accountable for inflation, and we are going to use our tools to bring it down. there really is no precedent for this. it is taking so much longer for the supply side heal than we thought. a little unexpected 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 the supply chains and things like that getting untangled, getting fixed. 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. in the meantime, we will use our tools and we will get this done. dani: fed chair jerome powell reaffirming the central bank is on track to raise rates this

week and commence a series of hikes to curb decades high inflation. ben emons, medley global and advisors, is still with us. chair powell talking about the unprecedented nature, but i want to talk about something else that seems unprecedented in what we are going through. financial markets, they are used to taking big haircuts on assets, but we are in a situation where we have all these russian assets that are extremely illiquid and is sensually valued at nothing at this moment -- and is is sensually valued at nothing in this moment. to what extent are we in uncharted territory right now? >> if you look at the russian bonds, you compare them to what the venezuelan bonds are about. an embargo on a country can shatter the world economy now. that leads to real illiquidity. we can now point out there is

some funding stress coming from this. the dollar denominated emerging-market market, bond market, the stock market, as well as funding currencies. even in germany, the german bund market, investors are wary of them. russia will not be able to access international capital markets for a really long time, until this conflict is completely resolved. even after it is resolved, they may not be able to. people withdraw their capital from russian assets. dani: as one journalist put it, it is a really big problem when people like me need to learn a lot about financial systems. it is a sign that something very bad is about to happen. to that point, can you explain the mechanisms? this is something i know you have been looking at as well, some of these unintended consequences. specifically, i know you are looking at some of these big etf and mutual funds that have russian exposure.

how does that picture eventually filter through to tighter financial conditions? guest: it is an interesting comparison between the big benchmark, dollar-denominated em bonds. that is now correlated with u.s. financial positions. what i think is going on is a lot of u.s. dollar style etf's have to remove those bonds from their portfolio and therefore the liquidity evaporates in the dollar bond market. but some other emerging markets, too. because it is directly linked to what is going on in ukraine, it is a direct effect from that, there are financial implications from this broader equity market of reaction going on in ukraine. that deteriorates and detracts

from performance on global equities. as i mentioned, it resolves. dani: for us, if i am just someone who is invested in u.s. equities, what does the fallout of this environment of illiquidity look like in practice? is it the moves we have been seeing or even more exacerbated moves? guest: i think what happened for example overnight is a good one because, yes, there was an immediate scare about this nuclear facility in ukraine. but as we saw on the mliv blog, this may not be such a major disaster. but you see tension coming on the market because we are dealing with illiquidity. there is the chart of illiquidity on this talk markets -- on the stock market. you see exaggerated moves that have nothing to do with what happened at the nuclear facility

or the federal reserve. it is just people withdrawing from the market altogether. i think this is what is going to continue at this moment until we are getting to a climax that may indeed be central banks coming back in full force and provide a massive amount of dollar liquidity. or the conflict is resolved and it comes back to the energy markets. that is to be seen. dani: i have seen the calls that the banks need to open the daily swap lines. really great to have you on. get some sleep this weekend. that is ben emons. a quick check on markets as we head into the break. we are looking at some declines in the stock markets, especially in asia. it is a very classic risk off type of market. coming up, eliminated. msci and ftse russell have cut

russian securities from their benchmark indexes. blackrock at the same time has stopped buying russian securities. we will look at implications of the move, next. this is bloomberg. ♪

dani: good morning from bloomberg's european headquarters. we have just gone 6:30 am in the city of london. i'm dani burger. this is "daybreak: europe." a nuclear power plant is under attack by russia. president zelensky calls on russia to halt the fighting. the news the stock market in russia will remain closed. plus, commodities are on course

for their biggest weekly surge in 60 years. oil has for its biggest advance since 2020. it is friday, and on that note on commodities, it is recessionary risk that has come into the fore, if it starts to crimp demand, can central banks do anything at this moment? we were talking to our guest, ben emons, about this. what you're looking at in the yellow boxes were moments when commodities had big deviations from the mean and oil surged 50%. each time, it was followed by a recession. this is something jim bianco wrote about on twitter, that not every surge was followed by a rise in crude, but every 50% rising crude has led to recession. that is what we are on track to see right now with this stunning move. is it recession markets have to gear up for? the yield curve is at 26 basis points.

we had a big reaction to news that one of ukraine's nuclear plants is under attack. we will get an update on that shortly. but a swift reaction in markets is still lingering. european futures down 2%. not as sharply down in the u.s., but the recessionary risks looking at small-cap futures under performing, down by more than 0.5%.let's . is -- let's get a check on oil. it is paring some of the games after this attack that happened around 1:00 a.m. london time. as we have gone further away from it, as there is hopes that the risk is contained, we are seeing brent crude at $110 a barrel. we are still looking at a euro which continues to weaken. we are looking at the risk of dollar-euro parity with ben emons, who says it is a risk at this point. still bond buying, about five basis point move in your 10 year yield. bitcoin falling, not acting as a haven in these times.

let's return to our top story with ukraine's largest powerplant coming under attack from russian shelling. at one point, a fire broke out as well. aggi cantrill is in southeast:. it seems these fires have been extinguished, but what does this mean for the progression of this conflict? reporter: hi, dani. it does seem at this point like the fires have been extinguished at this nuclear plant, but what is crucial to note is this is also being pointed out to even by president volodymyr zelensky himself that this should be a wake-up call for europe, that this sort of shelling from the russian side could have disastrous effects for europe more widely. however, it is worth noting that this plant is a much more modern plant than for instance the one that was in chernobyl during the disaster in 1986. dani: what has been the response

from the west following this incident? reporter: we know that biden spoke to zelensky after this had happened, and we also know there is a clear concern from european leaders about the possibility of any fallout from the conflict in this regard. but i think it is important to note that currently this is also being used by ukraine as a way to show urgency for their own concerns during this conflict, that ukraine will be able to secure more support from the west because this is something, especially for europe, would pose a risk to the whole continent. dani: aggi, thank you so much. excellent reporting. that is bloomberg's aggi cantrill at the border. continuing some of the fallout, major index providers are

cutting russian assets from their widely tracked indexes. u.s. funds tracking russian assets include the ishares msci russia cap etf. blackrock has stopped passive funds following russia's invasion of ukraine. let's dig into the details here. joining us is our guest. thank you so much for joining. i know this gets very complicated with how it functions, if you have to take illiquid assets out of etf. but let's start at a basic level. if i am an investor who holds an emerging market etf that all of a sudden can no longer have russian assets in it, what does that mean for me? guest: the type of etf for the type of index, etf tracking will be important. the way it -- whether it is

large or manages the day-to-day management. can we get as close as possible to the index exposure? you have seen that valuation. there has been sanctions. we have followed the sanctions of not being able to trade certain types of securities. that is the first thing. we would be doing we seek to track the index as closely as possible, but if that is not possible, then maybe some small locations or larger implications are tracking different. dani: from every investors, the implication is how wide the tracking error will be. i wonder if her and etf provider, if we could walk through what thinking looks like at this level, if you have assets in etf's that are valued at zero and they are essentially

illiquid, what does the prices look like for trying to figure out what even to do in this circumstance? guest: in that context, it is an ongoing assessment of the information, of market stability during this crisis and post this crisis. we don't know exactly what will be the impact. in that context, we are going to follow what the mechanisms are, how they are valuing. can you get stocks and bonds instead of getting cash? or instead you get cash and you manage the overall basket.

it would be intermediary, the ones taking the markets on etf. it is another element of the mechanism, which is discounts. some etf's are trading at a discount. it is very important also for the index providers to make decisions that we can apply into our evaluation of the underlying situation. dani: were you that surprise, given that this is something that has big implications, is complicated to figure out, were you surprised how quickly some of these index providers made this decision? or had it been widely expected? guest: we have been through a different crisis in the past, but this one is a very different one.

they have acted quickly. there has been constant engagement between us and our colleagues, engaging with different index providers to try and find something. we can't have a price of something that doesn't trade. we are in constant conversation. that is the very important thing. the conversation has been going on. there is a common path towards making decisions, taking actions. etf's are getting mandates.

they will be following the sidelines. dani: you talked a bit about the difference between etf's you are holding, how much exposure there is to russia in that etf. i know you don't have any pure russia etf's, but there are some out on the markets and they have had substantial volume, even a lot of dip buying, a lot of inflows coming into them. how risky is that at the moment? if you are looking at a situation where etf's are tracking extremely illiquid, if not untreatable assets? guest: in eastern europe, where russia would be, that would be a big portion of the exposure. i don't think a lot of them are actually open for redemption. there has been exchanges, and

the etf needs that. you can trade on the secondary market in some cases. it has been surprising. i don't think there have been inroads purely dedicated to russian equities since the invasion because of the challenge of accessing the stoxx. it is interesting, and it is one of the special features of the etf, allowing investors to move risk, hedge some risk, and that is what you don't necessarily get with others. dani: unfortunately, we are running out of time. should investors on a basic level avoid these russia etf's? guest: they may ask to understand whether they can buy russian assets. there are sanctions in place and

as an investor you are not going to do so. we don't have to buy with sanctions and so on. next, you could see opportunity for these assets. but at the moment, there are a lot of unknowns for what could be going on. if there is one thing we don't know, it is very unfortunate. if you're willing to sit on it for the next five years -- dani: apologies, running out of time. we appreciate you getting into the weeds with us. that is antoine lesne. let's get to the first word news. juliette saly is back with us in singapore. juliette: ukraine says it has agreed with russia to evacuate civilians, as moscow continues to attack key cities across the

country. negotiated for new crane -- negotiators say third round of talks will soon be held. fed chair jerome powell says the war in ukraine may accelerate china's move to develop alternatives to the dollar dominated international payment system. in the second day of his testimony, powell reaffirmed the likelihood that the fed would raise rates later this month. less than six weeks ahead of the french presidential vote, emmanuel macron has announced he is running for reelection. the incumbent is the favorite to win, with all polls show heading hemp -- showing him leading in first and second rounds of the election. 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. this is bloomberg. dani? dani: thanks so much. juliette saly and singapore. coming up, food prices soar. we look at the implications next. this is bloomberg. ♪

>> a little bit unexpected byproducts of the ukraine war, it is looking like supply chains -- it is not going to help at all with supply chains. >> russia is a very important supplier of weight, of corn -- of wheat, of corn, of corn, sunflower oil to the global markets. >> oil prices are elevated, wheat prices, are elevated nickel prices are elevated. i think you see it on the prices. they are up on all these commodities. >> i hope that the military invasion will be suspended very fast, and all farmers will be able to have the normal

agricultural year. dani: key voices weighing in on the impact of a war which is roiling markets and exacerbating supply chain issues. especially hit are supplies of grain, which has a sense prices soaring. wheat has hit another fresh 14 year high. our guest yesterday said high food price inflation could lead to severe consequences. >> the food importing countries like middle east, north africa, are heavily relying on russia and ukraine for most if not all of their wheat and grain. they are the ones where you are going to start seeing extreme distress. this is the kind of stuff that leads to food riots. for more, our agricultural reporter. these are some really massive moves. set the scene for us in how important russia and ukraine are for the global supply of wheat and these other commodities? reporter: it is hard to overstate the importance of

ukraine and russia to the agricultural supply chain around the world. these two countries account for more than one quarter of wheat, nearly 1/5 of corn. most of the sunflower oil around the world. these are agricultural commodities that you and i and a lot of people have in their fridge, on their counters. it is really important to everyone's groceries. these are huge players in agriculture trade. dani: one of the guests yesterday talking about these are the sort of prices that lead to riots, that have these huge applications. when we are looking at where we see the worst of the crisis, where we could see these implications, are there regions in particular that are concerning right now? reporter: wheat is a commodity most affected by this. this week, we have seen wheat prices rising 40%, and we know they are historic moves. there are a lot of countries that are big wheat importers, especially in the middle east and north africa. these are countries pretty close to the ukrainian russia.

-- pretty close to ukraine and russia. there are other countries that can offset this. the u.s., eu, even india could be seen extra wheat demands. these price levels are going to hit wheat importers pretty hard. dani: i know this is very difficult to predict, considering how the war unfolds, but depending on how long it lasts, is there permanent scarring even if we were to get a cease fire today, that would damage -- or with the damage be largely done at this point? reporter: it is hard to say, but in ukraine for instance, i am sure some infrastructure is being damaged in the midst of all of this. in russia as well with the sanctions and financial measures we are seeing against this country. that could mean it is difficult to trade with them for a while, even if the war did end today. it could make importers difficult to get supplies there. it is safe to say the ripple

effects of this could last for a long time. dani: megan, think you for joining such an important story. that is megan durisin albery, our emea arbor cultural reporter. we will look ahead to the chinese people's congress as they grapple with the war in ukraine. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i'm dani burger in london. let's take a look at the events we will be following today and over the weekend. the big one we are watching as the u.s. jobs report at 1:30 p.m. u.k. time. the february employment report is inspected to show the u.s. added some 420,000 jobs in the month, amid additional wage gains. though i should mention, angie

brenner saying maybe this doesn't matter today considering the market is acutely tuned to what is happening in ukraine and russia. today, the final list of candidates in france's presidential election in april will be published by the constitutional council. 5:00 p.m. u.k. time, apple will host its annual meeting of shareholders. that will be a virtual format. ceo tim is excited to speak. saturday, china's national people's congress brings xi jinping poster t -- closer to a third term in power. saturday, the winter paralympics kicks off. athletes from russia and belarus will not be allowed to compete after officials reversed their original decision. let's get back to the npc happening this weekend. joining us is bloomberg's china executive editor. but will be the focus for that this weekend? reporter: the big thing on

schedule will be the premiere giving his estate of the nation address, and various economic indicators in 2022, the most important will be gdp. most economists expect we will get a target between 5.5% and 5% . the higher that target goes, obviously the expectation would be for there to be more stimulus. growth came in at a much slower for percent in the final quarter of 2021. there's a lot of questions about the property market, about the crackdown on big tech. whenever that target comes up being -- whatever that target comes up being will show where policy is going for the course of this year. dani: how likely is it that external factors, and i am thinking mainly of china's support for putin in the were in ukraine, how likely will that be playing into the npc this year? reporter: that will certainly be hanging over everything. even though the npc is largely a domestic focused event, i think

it will be very difficult to get out of the way of this really big, massive global story. the thing to watch will be on monday. china's foreign minister will be speaking to the minister. it is a wide-ranging briefing that he does. he will take questions from dozens of journalists. russia and ukraine will obviously be at the top of the list of the things he will be asked about. depending on what he says, we may get more detail on what china's stance is and what it might be willing to do in the future. dani: john, thank you very much for the update in looking ahead to the npc. that is bloomberg's china executive editor john liu. the zaporizhzhia plant has been occupied by russian forces. we knew that it had been attacked. at one point it was on fire, and the fires have reportedly been put out. ukraine saying the site has been occupied by russian forces. it was the news that it had been

attacked that had a jolting effect to markets. we are not seeing too many more losses. some of the worst of those losses, the biggest reaction in markets, started to pare back. we are looking at less than a 2% decline in the euro stoxx 50 futures. these big jolting reactions we are seeing in the markets, then a men's -- ben emos was pointing it out these volatile moves. more losses when it comes to russell 2000 futures in the small caps space. also, it is all about commodities this week, headed for the best week since the 1970's. brent crude 1%, a weaker euro, and a bid into bonds. bitcoin not playing out as a haven today. that is down 1.6%. it is recessionary fears that continue to grip this market as inflation threats abound from higher commodity prices. that's it for us for "bluebird

daybreak." next is "bloomberg markets: europe." this is bloomberg. ♪

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anna: good morning and welcome to "bloomberg markets: europe." mark cudmore joins us from singapore to join us on the action this hour. your are your top headlines. ukraine says a nuclear plant in the east came under attack and is now occupied by russian forces. there was an earlier fire at the plant and it is said to be contained. havens