>> the duration of this incursion is going to lay on the economics of europe and the u.s. >> we risk seeing a much more entrenched inflation. >> the news is moving at lightning speed and markets have done so along with it. >> investors are pretty calm, not panicking, not running for the exits. >> this says to me i am looking for opportunities to invest. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. one day before and inflation report, the news today away from

the politics and the war is a better tape. jonathan: up 1.9%. we got a bounce on russian crude in america. now russia reacts, kind of. they said they would ban the export of some raw materials and goods, and we are still waiting on a list from the russian government. tom: it brings us back to the war in ukraine. we have to remember the overlay is a horrific set of events in the nation. jonathan: a humanitarian crisis. this morning, a veiled threat from the spokesperson for the russian president. russia may rethink energy commence after sanctions. will they, and to what degree? that is a risk on the table now. as we start to think about

so-called peak sections, i don't thing we have got started when it comes to russia and others. tom: what is so important here is the allied response and the individual response. the secretary of the united kingdom defense talking about missiles. lisa: there has certainly been a more united alliance between the u.k. and the u.s. which perhaps has the issue of being further away. however, there has been unity in backing ukrainians trying to exit the nation, as well as sending troops to the ground in ukraine. tom: our guest is so important to get to hear. i'm going to look at twos-tens spread away from the gloom of recession. 26 basis points, a constructive move. jonathan: it is twos that get my

attention. the two-year yield high of the year going into cpi tomorrow. the median estimate, 7.8%. but there are some banks including morgan stanley looking for cpi tomorrow morning, 24 hours, 30 minutes away, with an 8% handle. tom: we have a weaker swiss franc. certainly good news for global wall street. gold really coming back nicely off the surge we saw. jonathan: it is a break to the downside at 1.1960%. on the session we are down about 3%. year-to-date, up almost 60% for both brent and wti. tom: on radio and television worldwide, we thank all of you for watching and listening. the impact here on sanctions, the geopolitics, and in the idea of what to do ahead. bernstein -- and i'm sorry, i

forever will call it sanford bernstein -- bernstein private bank has written some very important attaches on the state we are in. beata kirr joins us now, cohead of investment at bernstein. the way you write it, it is not a moment. it is a longer-term state of affairs. beata: that is right. i thing we have to realize there are so many different scenarios that could play out here today, and i think you have to have a lot of hubris to say for sure one scenario will play out, so i think gradual is an appropriate word for what is truly a tragic humanitarian crisis that is now unfolding. jonathan: does cache work with 8% inflation? beata: we don't think so. we are not recommending a strategic outlook for cash. we are looking for opportunities to invest. think about alternatives, income

alternatives, real estate. we really started the year worrying about inflation and assets that can be protective, and we are continuing to allocate towards those assets, but then we are also looking for companies that have rising power and can be nimble in a fast changing environment. so i think there's opportunity being created here, and cash is not the right place to be in the midst of this market volatility. jonathan: are you thinking more and more about how gas prices will hit discretionary spending, and where you would be leaning into given that story? beata: where we started the year was a consumer balance sheet that was particularly strong. when we look at the nominal paycheck and even the real paycheck today in the u.s., we are still in pretty good shape. how long can the consumer tolerate prices at the pump going up to these substantial levels is the key question of the moment. we feel the u.s. consumer is in much better position than the u.s. consumer at this point, but there's no doubt that there is more vulnerability in the

forecast. it is something we are watching closely. lisa: certainly a lot of people are, as the prices of commodities surge. i wonder how much you are looking at specific commodities as an investment prospect beyond what you have in the past, especially as you see a lot of predictions that this is only going to continue. beata: we see allocation to a diversified basket of assets, as well as companies that can exert pricing power. think about hotels. they can change the price every single day. in and inflation market like this, they are going to do that. rather than focusing in one sub asset class, we prefer a deborah's if i'd basket, and we would source that from equities, depending on the inflation sensitivity. lisa: how much have you increased that allocation? i've talked to investors who say

it is super difficult to change things in an environment that is moving this quickly. beata: we look at inflation assets like an insurance policy. we have to recognize that sensitivity that everybody has is going to be different to inflation, and we are going to scale the weight of those assets based on the sensitivity. second of all, it was always hard to get inflation calls right. it is even harder today. lisa: have you recently changed? the past couple of weeks, have you increased allocation to real assets? beata: in the past couple of weeks we have not because we look at it more as a strategic allocation over time. we started talking about increasing the inflation basket really last summer, and we have continuously been talking about it over the last 12 months. tom: let me go to your career at bernstein. i'm enough of a fossil where i know what happens when inflation pops.

did you ability, massive combinations and transactions? beata: i think there's a lot of implications that are possible here today. you're seeing the hard part is we really isolate the inflation impact from the geopolitical impact. what is really unusual about this environment is that the geopolitical impact is piling onto what was already a challenged supply chain and already a substantial cpi print, and that is quite unusual. that is going to make it unusual for the fed to figure out. jonathan: beata kirr of bernstein private wealth management. this is going to be a big bond sale today by at&t and discovery. tom: it is a huge deal, $30 million. can you frame this? maybe it is not verizon in

another time and place, but what is interesting here is this is about media and about the tumult of technology and media. i radar harkens back to verizon. you wonder of the media assets of at&t over to discovery, cnn, i think hulu is there, and all of the details, but the size and enormity of it shows the scale and risk of this potential transaction. jonathan: the team at bloomberg confirming this was the biggest issue total since abbvie in 2019. as you know, as we know, this is coming at an odd time because the primary market has not exact been on fire, has it? lisa: the investment-grade bond market, where this would lie, number of issuers have decided this is not a great time to raise money, considering all of the volatility and that

investment grade markets are the widest going back to 2020. interesting they are starting this now despite what we are seeing among other companies. if they don't have a choice, and a lot of the investors know that and demand a premium, i what point do you try to time this and at what point do you say, just hope for the best and see what happens? jonathan: in terms of how it will be issued, as many as 11 parts, the longest offering a 40 year security. this is the issue, isn't it? it is a tougher market and it is more expensive. lisa: and you do have some investors who say longer-term, we're going to go back to a low growth kind of inflation environment, so it will be interesting to watch who comes in and at what value today. jonathan: that story coming from bloomberg this morning, at&t and discovery coming out with a $30

billion bond issue a little later. here's one. it milestone of sorts today as the fed's qe program comes to an end with a final $4 billion purchase of the three year sector. we are finally winding this thing down ahead of cpi tomorrow morning. tom: they said, what are you guys doing about the celebration of the end of covid? we are seeing it was deaths back down, but boy are we moving in the right direction. jonathan: but we want to know is how 'bramo celebrates the end of qe. lisa: i think i might be a little addicted to it. jonathan: advancing 1.9%. from new york, this is bloomberg. ♪ ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. in ukraine, president volodymyr

zelensky said some civilians are escaping around kyiv after russia agreed to open human terry and corridors. ukraine says not all those pathways are open yet. russian forces are stepping up their bombardment of kyiv. democrats and republicans in congress have struck a deal on a bill that funds the u.s. government. the measure would pay for refugees and to aid ukraine. the u.k. is prohibiting aviation and space related exports. that ban also covers insurance and reassurance product. in south korea, the conservative candidate has a less than 1% lead over the progressive candidates. he is hawkish on north korea and

china and faces closer ties with the u.s. cryptocurrencies are rallying today. investors appear optimistic about more crypto oversight. president biden issued an exec at of order which -- an exec at of order -- an exec at of order. i'm ritika gupta. this is bloomberg. ♪

♪ >> i think the pushback that the western alliance is put together and are continuing to push our good as deterrents for any further activity by putin. jonathan: kay bailey hutchison, former u.s. ambassador to nato. crude, $119.61. just got this from the international atomic energy agency on twitter. you might have seen some reports

this when he about chernobyl, so let me go through these one by one. ukraine has informed the iaea of power lost at chernobyl's nuclear power plant. the development violates a key safety pillar on ensuring uninterrupted power supply. however, they go on to say in this case, the iaea sees no critical impact on safety. they go on to say that the heat load and volume of cooling water at the plant is sufficient for effective heat removal without the need for electrical supply. that update coming moments ago. tom: within the swirl this morning, there is the official statement. i'm not sure what to make of it, but it is certainly calming versus what was in the twittersphere. let us go to an important conversation forget she has been fabulous on the microeconomics of oil, and we are going to pause with amrita sen, chief oil analyst at energy aspects.

with a tour de force coming out of the financial crisis, the professor got so upset at a misunderstanding of general equilibrium theory that he wrote a book about it. tell us about the new oil economics given this jump condition in price. is there an oil equilibrium out there this morning? amrita: right now, and this is a fantastic question you have asked, there is no equilibrium in the market. that is why you have seen prices, not just the levels, but the volatility you have seen, we have moved up $10, down $10, up $10 in a day. these numbers very much tell you the market is struggling to find what the true price is. tom: these are incredibly complex things. which part of our disequilibrium

should we focus on? amrita: it is originating from the supply side because russia is unable to sell production. you are going to see some shut-ins. but the reason you see these jumps is absolutely on the demand side. you and i both know that demand is very inelastic. it takes a long time to react to such prices, especially governments around the world introducing subsidies, so now suddenly consumers are not even fully exposed to the true price of oil. that is precisely why you're going to get these big discrete jumps in prices until you get to that point where demand really starts to hurt and you get back to that equilibrium. the problem is it is searching for that price. it is in price discovery mode, and whenever it is in price discovery mode, which is very rare, you're going to get huge volatility.

lisa: let's sit on that point for a moment. the conoco phillips ceo said he does think prices are getting to a place where we will start to see demand destruction. you start to see airlines curtailing the schedules to preserve capital, considering that some of the less popular routes are consuming a lot of expensive fuel. how much will this make a difference on the margin? how big is that imbalance so that little moves can have a big impact? amrita: i think the important thing to bear in mind is that we started this year with nearly record low inventories. that is why we don't really have a cushion. now if we are talking about losing 2 million, 3 million barrels a day of russian production, how much demand will need to come off? we are seeing airlines at the margin curtailing some routes. that is going to help. you're going to lose some demand in russia, and parts of europe as well, but it is not big

enough, especially if you think about asia, not expose fully. they are in a post-pandemic recovery or people are very keen to travel by car and by air. that is the problem in this cycle where in anything but a recessionary environment, it is a recovery environment, and we have hit it with a supply shock. lisa: given that backdrop, how high -- amrita: the oil burden on gdp is going to be very different, but the reason i say it is above $150 and not $200 and even higher is, unlike in the past,

it is not just oil that is rising. it is natural gas, food, metals . it is a very inflationary environment overall which is why old is not need to do all of the work to curtail demand. there are other factors pushing consumers to spend less. jonathan: as always, thank you, andrea -- amrita sen of energy aspects. conversations could happen in the future between this administration and a number of countries, including those in the middle east and venezuela. there was a visit of officials to venezuela. the response to release to american prisoners. secretary blinken with a tweet, "we welcome the long overdue release and return of those two american prisoners detained in venezuela. we have more work to do." there's a theory that the hope

is by doing so, they allow things to start moving again between venezuela and america and maybe take more venezuelan crude. tom: i can't quote it exactly, but in every crisis there is an opportunity. maybe that is what we are seeing with the extreme leaf fractures relationship between washington and caracas. i would suggest that there is a marginal approach here by the u.s. to talk to many different parties, not just a blunt instrument of talking to one. jonathan: the foreign policy is really difficult. at the same time you are backing away from russian crude, you are asking from the middle east. then going down to venezuela to deal with someone who is widely regarded as a dictator there to ask them for more crude potentially, this gets really awkward really quickly. lisa: it gets incredibly awkward, and we do here that the administration is having many talks with some of the executives of oil companies

domestically. how this percolates into a policy both domestic and foreign, hard to see. jonathan: 24 hours from now, we will becoming you down to cpi in america and building up to a news conference with president lagarde. tomorrow gets important. futures up 1.9%. this is bloomberg. ♪

jonathan: 24 hours from now, this time tomorrow morning, uscp eyedrops come and then we hear from president lagarde. futures up on the s&p. yields backup through 1.90 briefly. on two into the print tomorrow on cpi, the high since 2019, just short of 1.65 on the two year yield. crude down a little more than 3%. moments ago heard from mastercard. retail sales for february 8.7% year-over-year. on the month on month just slightly above the growth in january. that is the read from mastercard. we will get another read on cpi

tomorrow and have a conversation about what that means for consumer demand more broadly. tom: we are data dependent and will be the effect of the war at the distance from what we have heard from ukraine and others. i think the confusion cannot be mentioned enough. jonathan: i would suggest how much has changed in a couple of weeks. literally just a couple of weeks. a lot has changed. tom: the outlooks that we had at the end of the year are basically useless like all of the outlooks bill gross wrote over the years. let's migrate to a conversation with bill gross, former pimco cio. he has put out a book which is hugely readable. i was not sure what to expect from the stamp collector. it has a lot of smart notes and some extremely frank talk about

his turmoil of the recent years. i love the idea at the beginning of the book there never was a bond king. i met you at the waldorf-astoria and you are almost in tears because you got the bond market wrong. i cannot remember if it was price of yield down or yields up price down, but you blew it. at that time you completely blew it. what you get right that made you the so-called bond king? bill: i think from an early stage, i wrote a book called the long-term secular deal of financial markets and it seemed to me that if you could eliminate human emotion, which is what you just talked about on a day-to-day basis, if you look

three to five years out and had an intelligent or fast as to the direction of inflation, then you would have a better chance. i think the secular outlook at pimco which was three to five years was key going or what. tom: you were at indian wells, a small tennis tournament which will be a great interest to those who follow tennis. part of it is getting the ball in play and getting the ball back and forth across the net. you started out in the mailroom at pimco. how did you get the ball moving on the pimco tennis court starting out in the mailroom? bill: we had a billion-dollar portfolio. it was not pimco at the time. i just graduated from ucla. i was clipping coupons. not exactly in the mailroom but clipping coupons. i said to myself wanted it beat debtor to get out of the vault

and get into the sunshine -- wouldn't it be better to get out of the vault and into the sunshine. at that time he do not have computers. i thought if i could take 5 million of that one billion-dollar portfolio and traded at perform and we could get some clients and grow a little investment company called pimco. lisa: a little investment company that grew quite large. you talk about your start with education, with $200 into your pants in las vegas. getting $10,000 to pay for your college education. parlay that gambling to the markets and how the game has changed. how much has the game changed over your tenure? bill: it has changed a lot. when i started there were not liquid mortgage pass-throughs.

there certainly was not interest in foreign bonds. there were not any inflation protected securities, etc. that in the evolution of financial futures introduced liquidity to the marketplace and allow for even a small firm at the time like emco to basically trade and make money -- a small firm of the time like pimco to basically trade and make money. we could buy treasury bonds through the financial market and turn a 10% yield into a 12% yield. the first mover advantage for pimco in terms of all of these categories was quite critical. lisa: reason why i ask is because we are in an era where a lot of people talk about the distortions in the bond market by the federal reserve where the fed is prepared to start moving back from some of their support from their bond purchases. today marks the last day of those pandemic air a purchases.

how much can the bond market give the same kind of messages as it did when you started out clipping coupons? bill: certainly not as much. there is more involved by almost all the central banks despite the pullback you mentioned occurring today. interest rates are still artificially low. it is hard for institutional investors to make much of a difference. central banks control the market. i think they are terribly wrong in terms of what they have done and stayed so low so long. now we have inflation, not necessarily because of those policies, but probably in large part because of it. it is a difficult market. you try to anticipate the central banks, which has been

relatively easy in the past few years because they've not done anything. now they are about to move and it is a question of what jay powell and others do in terms of the policy rate. tom: i've been to newport to see your munro trader on your desk where you calculated convexity. the first mover advantage of pimco was intellect. i want you to speak about what you and mohamed el-erian did when you got together and put intellect first for a buy side house. every single buy side shop had to react and patter themselves against what you and mohamed el-erian invented. tell us how you put intellect first at your pimco. bill: we build -- we did build a small company and a larger company.

it was not just myself and mohamed el-erian. pimco was a success before mohammed. par mccauley was very key. chris diana's was very important in terms of bringing financial futures to the company. there were lots of others that were innovators, that were risktakers. putting together a group of bond kings and later queens was quite important. tom: was the challenge you had later in your career, and i do not want to get into the soap opera of it, where the challenges you had, like it so many other shops, due to the decline in profitability of the five side? -- of the buy side? it used to be a cozy job, you show up for two hours and then you play golf. the buy side, every single story

is about lower and lower revenue and squeezed margins. is that what you ran into later in your career? bill: that is what i was advocating, within the bond market there was this extension of trading into etf's and vehicles that charge lower and lower fees. i sensed that as a trend because as interest rates themselves lowered, went down to 5%, 3%, 1% , you cannot charge 50 basis points on a 1% 10 year treasury. that is half of the yield that almost an egregious type of situation. fees became important in terms of my leaving pimco because the surviving contingent wanted

higher yield products, hedge fund types of products, and i wanted to stick to the old total return formula that had done so well. lisa: the total return formula is that a tenuous moment because of where yields are and where inflation is expected to be. some people consider jeff gundlach your successor when it comes to the bond king monitor. the question i have is do you agree with his pronounced occasion of a 10% inflationary this year the idea the fed is vastly behind the curve? bill: the later, yes. but 10% inflation rate is problematic. it depends on commodity prices, oil prices at the rates follow on. i do think inflation will be a 4% to 5% category for the next never years. does that validate tenure of --

does that validate a 10 year of 1.80? it does not. does it mean there will be a huge amount of sellers? probably not. treasuries are a safe haven, much like gold. stick at 1.8% until the coast clears. i think bonds are a risky investment. durations are very low, as low as they have ever been. when inflation is accepted in the marketplace at 4% to 5%, then bonds are a sale. once we get above 2.15 on the 10 year there is substantial risk. there is a long-term trend of about 35 year downward trend in terms of the 10 year and the 30 year that has not been broken and is one of the most amazing

trendlines that a is in financial markets. right now the 10 year and the 2.15 would break the downward trend. that is critical. lisa: so you think that trend will be broken. do you think we will escape the negative real yield for text or do you think that will persist? bill: it might in certain areas. there are fewer and fewer negative yielding bonds. i think we are data for trillion dollars as it goes to $15 trillion. i think ultimately we have to as a finance based global economy, negative interest rates are definitely a negative, a detriment to economic growth because they encourage or discourage savers, which is the thrust of investment.

if you do not have savings you do not have investment. if you stay in negative territory, investors will put some of that money into a mattress, that does not do very well in terms of productivity. tom: bill will stay with us with his new book out, i am still standing. more timely because of the invasion of ukraine, it is the launch of spacex. they are preparing that right now. this is spacex falcon 9. you have to believe it has somehow changed off of cape canaveral that it would have been 13 or 14 days ago. lisa: this is important because it is at a time when we have this dominance of the tracking of a lot of individuals through their phones, which is part of how ukraine got ahead of russia and tracked tanks. there was an anecdote they could tell where the tanks were

because google maps was saying there was a lot of traffic there. these satellites are integral in the way we understand the world. tom: this will be a number of minutes of the launch. 56 minutes in is when we would see the deployment. one hour and 55 minutes in we will see the deployment of the starlike satellite. for all of you on bloomberg radio and bloomberg television, someone who has been a great support to us over the years, bill gross, always and forever of pimco. out with the wonderful new book. there is a hilarious moment in the book, and i'm not surprised. i tried to fire you at least three times. kaiser went after you on wall street week and said who is this young turk, get rid of him. how did kaiser fire bill gross? bill: we always had a question as panelist and my question was

about the fiscal deficit and expanding. i thought i would be cute and bring a rubber band into the studio and fire it at the viewers when i talked about an expanding fiscal deficit. i did that and it was a good shot. i missed easier. -- i missed his ear. he smiled and went on but clearly was very miffed. at the end his producer fired me. tom: please that i have talked about this before. the parlor game of that guessing. you've been opinion onto on this. sometimes -- you have been eight a pinata on this. is there value to the modern fed watching? bill: i think there still is. debating whether it is a quarter

or 50 basis points may not be of too much value. if you can analyze the longer-term moves in terms of 12, 24, 36 months, that is the critical judgment and becomes very difficult politically and otherwise. i still thinks in central banks control the market you want to try to guess what jay powell and others are thinking in terms of interest rate hikes. i would say listen closely. lisa: especially at a time you think the trend will be broken, the downward trend of yields we had experience for decades. at what point do you think investors should look to breakeven on an inflation adjustment basis rather than get returns from financial instruments the way they have become accustomed to? bill: if you're talking about tips? lisa: in general.

i think there is a feeling where you were talking about investing in riskier assets to try to get bigger returns for pension funds and foundations and you have a lot of big investors saying you have to lower your expectations in order to not just lose your shirt and risky assets. what is your view? bill: going forward, i've shared this for a few years, not with the faangs, i think an investor can only expect 5% to 6% going forward. these are days in which interest rates will be rising, they will be pressuring corporate profit margins, they will be affecting the housing market. there is less liquidity in the marketplace. a 5% to 6% return instead of a 10 like peter lynch used to call it or even 20%, which most

millennials and new investors think they deserve is probably a pretty good number. lisa: which asset class would you choose as having the most,'s if you are restarting your career -- having the most promise if you are restarting your career now? bill: probably commodities. i would not choose real estate because i think that has been thwarted because of the potential for higher interest rates. stocks for me would still be an exciting young person's type of asset class despite the lower returns going forward. lots to choose, lots of difference to make in terms of analyzing. i would pick stocks. i picked stocks in the beginning

but they would not have me so i clipped coupons. tom: had a wireless there is and our viewers, thank you for the mention of the bloomberg in your book, you say you get up and look at the bloomberg screen for five hours. that is a great retirement. when you get up in the morning, and even with your caution over the years, you have never been associated with the bloom crew -- with the gloom crew. how should our listeners respond with the friday data and internet dump of gloom on the markets? bill: you should take it very carefully. human emotion is critical as an investor and attitudes towards markets. i have been a glass half-empty because that is what bond investors are. they protect capital.

the same time pimco and myself rode the bond bull market from 1981 all the way down to a few years ago that is a very bullish optimistic type of attitude in terms of bond crisis. i think it investor has to know who they are and then try to apply that conservatively to markets. tom: you are more qualified on this than five or 10 guys in the world. i have been preaching that ukraine is a crisis of tangible assets, commodities, things. things fall on your foot like an oil drum. you are the king of financial instruments. what is different about the financial system now given tangible asset prices versus intangible asset financial instrument crisis like what we saw in 1998? bill: certainly liquidity is

different in terms of russia's central bank reserves and ethic that begins to affect other countries as well and ultimately affects investors attitudes. momentum, which is a valid alpha generator, meeting those that follow momentum types of trends have done very well over the past 10 or 20 years as markets have moved up, momentum has now shifted the other way, and so investor has to be cautious of this every using trend of higher and higher rises buying the dips because momentum is going the other way. financially that is a key consideration relative to what you mentioned with things. lisa: you have had a history of bold bets throughout your career. what is your boldest bet right now? bill: very few.

i am doing arbitrage, corporate buyouts by microsoft and will, google announced one the other day. i am content to take 4% to 5%. my biggest bet is over the last year. i have done very well in gas pipelines, partnerships. there are not too many of them but they yield 8% to 9%. they have gone up as the faangs have gone down. the last six to 12 months have been good. tom: bill gross, good to see you. thank you and congratulations on the essays in your book. a wonderful new text, i am still standing. the good news today, a pause in the gloom we have seen over the

last number of days? lisa: at least in markets. there is still a huge humanitarian issue. there have been humanitarian core doors opened up so people can leave. kyiv is evacuating some individuals. there is a feeling in market they are subject to incredible volatility. wti is falling more than 5% so far on the session. the biggest year to date decline comes after the whipsaw action we have seen. unprecedented intraday volatility not just in oil but in wheat and nickel. tom: there's been good writing on how ranges change in crisis. i am using my hands close together. you have narrow ranges and all of a sudden there wider ranges. that is what we are absorbing across the commodities. i thought david malpass was

riveting on the immediacy of the food crisis. lisa: i would agree, and talking about the egyptian authorities about how much corn they have stored, how much we'd come it reminds you of biblical times, this idea of the reality of our world, how much we see the distortion of how much they've gotten away from the need to eat and other basic physical needs. i have to say the financial's asian we have seen at the commodity -- the financialization at the commodity market coming to the fore. tom: it is but it is about the underlying. it is amazing to see. we will call upon will kennedy and our wonderful commodities team. so many people helping out in the metals. speaking of that, corn with a positive print goes away from what we see in wheat. i think it was a bit of a pullback. it is certainly good news. this is the s&p 500 futures, up

1.7%. dow futures of 500 points. the vix 32.74. stay with us on radio and television through the morning. lisa: what we are seeing in the market, that rally extending near session highs for the nasdaq. up significantly after such a big selloff. s&p futures up nearly 2%. euro gaining. everything in reverse that we have seen over the past couple of weeks. 10 year yield rising. two year yield reaching those highs and crude seeing the biggest decline of the year. we will see whether or not that does hold. now we are looking a number of headlines trying to figure out what the u.s. policy is. coming up on balance of power we

will be hearing from the founder of equity group investment. we will continue to monitor any statements from the white house with respect to russia, with respect to china. from new york, this is "bloomberg surveillance." ♪

jonathan: after four days of losses on the s&p, we have a bounce. "the countdown to the open"

starts right now. >> everything you need to get set for the start of u.s. trading. this is "bloomberg: the open" with jonathan ferro. jonathan: live from new york city we begin with the big issue. putting the pressure on vladimir putin. president biden taking action against russian energy. pres. biden: i am announcing the united states is banning all imports of russian gas and energy. that means russian oil will no longer be acceptable at u.s. words the american people will deal another powerful blow to putin's war machine. jonathan: the corporate exodus continues. starbucks, pepsi, mcdonald's joining a blowing -- are growing list of companies leaving russia.