with several members asking for a stronger declaration in support of kyiv. speaking to reporters, french president macron says a cease-fire between russia and ukraine is not realistic in the coming hours. >> we constantly engage in communication with president putin. until the last minute before he decided to launch his war, after, to fight for real negotiations and get a cease-fire. nevertheless, i have to concede that the conditions that putin has put on the table are not acceptable my anybody. mark: president macron also called the bombing of a maternity hospital in ukraine " disgraceful." the u.s. is willing to relax economic pressure on venezuela depending on the outcome of upcoming talks between president nicolas maduro and the opposition. a senior administration official says washington want to see

progress toward restoring democratic governance before it allows venezuela to increase oil exports to the united states. venezuela has been under economic and oil sanctions since 2019. hong kong will not resume international travel until it contained its record-setting covid outbreak. chief executive carrie lam today said the city cannot lift a ban from flights from nine countries including the u.s., u.k., and australia, because it would add more pressure to an already overwhelmed care system. hong kong's plan to let -- to test the entire 7.4 million population has been put on hold indefinitely. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

matt: good afternoon from new york where it is 1:00, 6:00 in london, 2:00 a.m. in hong kong. i'm matt miller. welcome to bloomberg markets. here are the top stories we are following from around the world. stocks fall as yields push higher. the latest inflation print shows consumer price gains accelerating for the sixth straight month. we will break down the report and tell you what it means for global central banks. the ecb unexpectedly accelerate its wind down of monetary stimulus, signaling it is more concerned about record inflation than weaker economic growth. and goldman sachs says it plans to close its operations in russia, making it the first major wall street bank to leave in response to the nation's invasion of ukraine. let's get a quick check on the

markets. we don't see the kind of volatility we had for the past couple sessions. the s&p is off 1.3%. not the 3% moves that we saw yesterday or monday. u.s. 10 year hovering around 2. 1.9969. investors feel comfortable enough to sell that debt. the bloomberg u.s. dollar index, 1198. crude is down but only 2.3%. compared to what we have seen, relatively small move. texas intermediate trading, $106 and change. let's get to something that caught my eye, inflation. definitely surprised me and many other new yorkers to learn that prices rose 5.1% in february from a year earlier, here in new

york, compared with a 7.9% jump nationwide. we learned the city's rate last month was the lowest among major metropolitan areas in america. new york prices have been climbing at a significantly slower pace. it just doesn't feel like it when i fill up for more than five dollars a gallon, and i have a 36-gallon tank. let's bring in julie coronado from macropolicy perspectives. i saw a story this morning that said low wage earners do not think there increases in pay keeping up with inflation. although if you look at the facts, the data shows that they are. do we feel more inflation then we are actually getting? julie: we are feeling it now in the things that we can see at high frequency, gas prices, you mention filling your tank,

everyone feels that on a weekly basis. you see the food prices in the grocery store rising. these are very visible, high-frequency price increases that way on people's sentiment. it doesn't feel great when things are shifting beneath your feet. of course we know things like energy prices adjust faster than wages. you might ultimately be able to recoup some of your purchasing power through wage gains, but those usually reset once a year, when you change jobs. there has been some reports of higher frequency changes, but not the way that food and energy prices are. matt: will we see a slowdown in inflation or continued wage increases? hopefully not a continued inflation and slow down in wage increases. julie: this latest round of headline inflation, this energy

shock tied to the tensions that had been brewing since december. if you look at the run-up in oil prices since december, it is substantial. that is truly outside the system. that is not coming from strong fiscal policy or a strong labor market, easy monetary policy. that is a shock. i think we will see consumers pull back a little bit in the coming months, as they typically do when they are hit with a sizable shock like this. i don't think it is anything strong enough to derail the u.s. recovery, but it could make consumers a bit more price-sensitive than they have been. when consumers were flush with cash from the stimulus payments, realizing being wage gains, they were less price-sensitive. they took some of these increases that were being pushed through. we may see some pushback from consumers. the other element of this, now

consumers can spend on a broader range of goods and services. we will have a fully open summer, people moving around, traveling, being able to entertain themselves, go to restaurants. they will not just be sitting at home ordering online. that means as they see higher prices, they may shift their spending around a little bit. i think we will continue to see strong wage gains, probably will not keep up with inflation in the near term, and that will lead consumers to become more price-sensitive. that is the sort of self-destructive nature of this headline inflation. matt: the question on the growth side, do we get a recession this year or early next year? i keep going back to matt winkler's op-ed, showing that ceo's are overwhelmingly optimistic.

300 of the s&p 500 companies that reported said they expect to add more jobs than ever before. capex is shockingly huge. is that going to carry us through the year with growth? julie: i think so. we could not ask for a stronger base of an economy to carry us through a shock. i don't want to downplay, we still don't know how all of this will play out. we are in a geopolitical conflict that is likely to be very enduring. cutting russia out of the global economy -- these tensions are likely to persist, the disruptions that come with that are lucky to persist. it is not just a short-lived -- it is not likely to be a short-lived thing. that said, if you look at the u.s. economy domestically, very strong.

one of the byproducts of a strong labor market is that companies are investing in capex, investing in laborsaving, changes to their production method, reducing their labor needs, process and production. it is cross service and goods sectors. that is creating a good investment environment, helping companies maintain margin despite rising wages. really broad base of support. i don't think the recession risks are particularly high. i do think some of this energy inflation may ultimately do some of the job -- the fed's job for it in cooling the economy, but that doesn't mean that the fed will not keep marching forward in the near term. they will initiate a study sequence of rate hikes, implement quantitative tightening plans. that will also cool the economy. one of my favorite leading indicators is the bloomberg

financial conditions index. that is in negative territory now. we have seen financial conditions go from extremely a brilliant to tight. matt: it happened quickly. julia, thank you for joining us. founder of macro policy perspectives. we had a 30-year auction, we saw it stop at 3.275%. bit to cover was 2.46. indirect bidders, over 71%. direct, 16.4. keep your eyes on the fixed income market. not the same kind of volatility we have seen in commodities, but there has been a lot. coming up, the ecb surprises with a faster stimulus exit as it signals more concern about inflation. we will discuss that with jeremy

strech from cibc. this is bloomberg. ♪

>> we had a very intense

discussions about the current economic situation, the war of russia against ukraine has painted and overshadowed a lot of those discussions. gdp growth has been revised downward for the near term, owing to the war in ukraine. inflation has continued to surprise on the upside because of unexpectedly high energy costs. the governing council sees it as increasingly likely that inflation will stabilize at its 2% target over the medium-term. the war in ukraine is a substantial upside risk, especially to energy prices. we try to have as much optionality in order to deal with the situation. maximum optionality in the face of maximum uncertainty, but also delivering on our mandate, which is price stability. we are not talking about

accelerating, not talking about tightening, we are talking about normalizing. the russian invasion of ukraine is a watershed for europe. matt: welcome back to bloomberg markets. i'm matt miller. that was ecb president christine lagarde speaking earlier today as the bank unexpectedly pledged to accelerate its wind down of monetary stimulus. joining us to discuss is jeremy stretch at cibc. thanks for joining us. we were looking at a euro that was heading closer to parity and it has turned around in the last few sessions. what did you think of the meeting? jeremy: we have seen a great deal of volatility in the past few sessions not just because of the legacy of the eurozone being particularly influenced by the negative backdrop from the events in ukraine. they have decided to look through some of those growth

headwinds which have been encapsulated in the stock forecast. focused more significantly on the uptick of inflation in 2022 and 2023. even in 2024, the target is just above the 2% target. the ecb are embracing the idea of ending asset purchases earlier. that has had an impact on some of those spreads. i think that will cause some consternation for holders of euros. if we see spreads push wider, the euro will be under some pressure. matt: it seems like the ecb doesn't have much control over certain pieces of the inflation picture. we were looking at some of the components, energy is a massive one, and it doesn't really matter where rates are, what kind of support the bond market

has. that is all about the war. on the other hand, growth is something the ecb can support, and that will be a problem going forward. jeremy: it will be an issue because we are seeing an uptick in inflationary pressures, but those pressures are lower than we have seen in the context of the u.s. today, that we will see in the course of the u.k. in the next week or two. the inflation dynamics will prove to be a little bit of a drag on the consumer backdrop as we move forward, but overall, we see reasonable levels of growth, domestic demand are many relatively well supported, and we see a tightening labor market. the growth undermined by what is happening in ukraine is constructive.

we will see this in the fed next week. trying to walk a tightrope between trying to support growth but also dealing with inflation. matt: what do you think is the most interesting right now in fx? we have seen the dollar bid. it looks like the euro-swiss. typically more of a haven. what is most interesting to you among the pairs? jeremy: plenty elements of interest. our preferred commodity of choice is the australian dollar. we are seeing a market that is forcing the rba to be more aggressive in its policy actions, but we also see commodities being a beneficial backdrop in terms of the macro dynamics. the aussie is one that we will

play with interest. the euro will probably drift to lower. the dollar will probably remain in the ascendancy. matt: thanks very much for your insights, jeremy stretch. still ahead, goldman sachs is the first major

matt: this is bloomberg markets. i'm matt miller. goldman sachs plants to close its operations in russia which marks the first major wall street bank to leave in response to russia's invasion of ukraine. for more, let's welcome wall street reporter sonali basak.

it is interesting they have taken so long. the goods manufacturers, drinks and food, came out first. it has taken longer for services to get out. sonali: all the banks are talking to regulators daily to figure out how to untangle not just sanctions, but if they did a more wholesale removal, how to do so. we are talking about the global financial system. a lot of exposure to not just the banks but to counterparties and funds. goldman's exposure is fairly limited, 80 employees, some of them are russian nationals, some of them are not, moving to dubai. goldman is one of the few firms in the 1990's that really pushed into russia. jp morgan was the first to really pushing to bond deals in russia. we don't know their full exposure like we do with goldman, only about $700 million. citigroup, $10 billion of total

exposure. we know why citigroup cannot totally untangle. they are try to sell some of those assets. it is a little bit complicated for some of these firms to unravel their ties, but this is a first large move. matt: maybe we see others. in terms of exposure, there is a story on pimco, that they have $1 billion on exposure in terms of credit default swaps they have sold, also exposure that they are long bonds. sonali: a lot of people are looking at what would happen next week if russia does not pay back its dollar-denominated debt. what if they default on those bonds? pimco has massive exposure to the sovereign debt but also to the cbx. they would have to pay creditors. matt: if they pay that in

rubles, is that a default? sonali: who bears the losses at the end of the day? pimco is a $2.2 trillion asset manager. in total, this is a drop in the bucket, but a large amount. when you look at who holds russian sovereign debt and the many corporates, it's crazy how much spreads have blown out. you think about pimco and all of the emerging bond funds that have an even greater percentage of exposure. the reason pimco is so interesting, we are talking about the dan iversen income fund. emerging markets is one part of the fund that has everything from investment grade two treasuries to high-yield. the everyday person has more exposure. matt: that is an inside joke between me and sonali. in terms of a default, fitch downgraded.

i saw that the sovereign bonds are showing that concern, but corporate, not so much. sonali: you have gazprom and rosneft who said that they would pay back. stealing so much from damian sassower on this today. we looked up where those energies are domiciled. luxembourg, ireland, not russia. in theory, those assets could have been seized if they did not pay back creditors. one thing important going back to goldman, what they said about what they would do as their role as a market maker. even though they are exiting russia, they have to be in the market for their clients. they said they would reduce risk in russian securities. we are not stealing unanimity from all the wall street. matt: you and i were talking with damon yesterday, an incredible resource on this. you can get the bloomberg intelligence dashboard, and we

recommend you check that out, if you have this resource at your disposal. coming up, u.s. inflation hits a fresh 40-year high. we will break down the latest print with daniel alpert of westwood capital, and we will talk to him about the job situation. are your wage increases keeping up with inflation, or are they not? this is bloomberg. ♪

mark: welcome to the bnn bloomberg audience. i'm mark crumpton with bloomberg first word news. vladimir putin is showing no signs that he is planning to end

the war in ukraine. the estonian prime minister spoke with bloomberg television in paris today after high-level talks between moscow and kyiv failed to make progress. >> i don't think they have the political will to have a diplomatic way. they want to cause as much damage as possible. it seems to me that putin, in poker terms, has gone all in. he either wins or loses. it is up to everybody to make sure that putin does not win this war. mark: the prime minister said the european union is unlikely to follow the united states in banning russian oil imports because each european country has different energy dependence. you will have to wear a mask on planes, trains, and other forms of transit for at least another month. the biden administration will extend the federal mandate that was set to expire march 18, requiring face coverings has

eased fears of infections and helped fuel and airline travel come back since care is lost more than 95% of passengers in early 2020. the republican national committee is suing nancy pelosi and other members of congress for investigating january 6 2021 capital riots, accusing them of abusing their subpoena power. the lawsuit says the house select committee is using its subpoena authority to access private voter data. the committee says it needs the information to understand how lies were spread about the election in the weeks up to the right -- weeks leading up to the riot. there may be a risk of more atlantic hurricanes this year. the climate prediction center says there is a 45% chance la nina sticks around the equatorial pacific between august and october, although there are people odds of more normal conditions.

meteorologists say it would mean less windshear in the caribbean, leaving tropical storms free to gain strength undisturbed. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ jon: i'm jon erlichman. welcome to bloomberg markets. matt: i'm matt miller. here are the top stories we are covering for you from around the world. u.s. inflation hits another 40-year high following the war in ukraine, but many workers are saying that salaries are not keeping up with prices, leaving them struggling.

a top concern of retaining talent comes more difficult. how dhl is overcoming the challenge by using technology to ease supply chain woes. he was chinese stocks are plunging. we will take a look at e-commerce operator jd.com, as it faces its worst day on record. jon: speaking of the markets, let's get that major average check. after wednesday's big bounce for growth stocks off of the lows, tech stocks are struggling again. the nasdaq composite of more than 240 points. even in canada, where we see the commodity trade alive and well, some of the energy stock lift is not doing enough to offset the growth stocks struggle we are seeing. even oil has been volatile today. whether you want to look at the bond market, the lingering uncertainty around ukraine, as

the reason for investors who sit on the sidelines, or coming back to that inflation story, we want to dig deeper into the takeaways. our segment on the inflation picture and those latest numbers. prices accelerating near 8%, the highest level since 1982. we did see these numbers fall into line of expectations. we could have had a conversation in terms of market reaction if it went beyond that, but we have to factor in a lot of that commodity price surge we have seen since the russian invasion of ukraine. matt: the interesting thing is, before we factor that in, if you actually grasp cpi year-over-year versus the change in average hourly wages from february 2020, march, right before the pandemic started,

wage growth had accelerated at a faster pace than inflation. while the survey data that we got showed workers do not feel like their wages are keeping up with inflation, i would just point out that even for the best experts, it is really difficult to gauge what inflation is. if you are only playing close attention when you are at the gas pump, every week, as opposed to looking at your paycheck and a monthly or yearly basis, those don't change very often, it will feel like a lot more, but you might be keeping up. jon: let's dig deeper into those factors when it comes to the inflation story and the market reaction. daniel alpert of westwood capital is with us. the cocreator of the u.s. private-sector job quality index, economic metric that measures the higher wage versus lower wage.

always nice to be with you. your general characterization of the inflation picture as it stands today? daniel: the interplay between the employment situation and inflation story is the biggest issue facing both markets and policymakers. this is a very complex story because people are worried that we will enter into some sort of wage price spiral condition, which i don't see happening. quite frankly, the uniqueness of this post-pandemic period, plus the emergence of this war in ukraine, really presents us with some unique conditions we have never experienced before. a lot of the temptation to look at the current situation and say, is this wage pump we have seen over the last 12 months one and done, or is at the beginning

of something that will go on much longer? still an open question for most people, but we will start to see where that comes out over the coming months. matt: the concern is that inflation continues at this breakneck pace, but the wage increases we have seen with people coming back to work, especially as there was a scarcity. employers were willing to pay more, there was a real competition to get those workers. if those wage increases fall while inflation stays at these elevated levels, that's a real problem, especially for low income workers. daniel: you have to look at both ends of the equation. i don't think that we will see inflation sustained itself at the current pace. an interesting report because it marks 12 months of high levels

of inflation. it started in february of 2021. we have now been through this. this was directly related to the pandemic, the enormous amount of relief payments that flowed to households in 2020-2021, the huge supply chain problems we had across-the-board related to the pandemic, and now we have the oil situation related to the war. but that is not going to continue. eventually, we all knew that it would resolve itself. one of the interesting data points in today's print, the inflation in core commodities, commodities outside of food and energy, really fell significantly. it was running around 1.2% per month. it was only 0.4% for the last month. as that starts to normalize, we

will see inflation start to look more like it did earlier, putting aside the fact that we will continue to see several months more of disruption in food and energy. jon: putting that all together, and certainly the fed is keeping close tabs on that, given the dynamics we are watching play out in the bond market, which you are watching closely as well, if the fed does not act now, is there a long-term challenge, even if some of the inflationary pressures potentially ease over the course of the year? daniel: very good question. part of the answer to that is another question, which is, did accommodative monetary policy actually create this inflationary environment? in normal times, you would say, wow, the fed has been incredibly accommodative, so that must have something to do with this inflation. but the answer is not really.

the pandemic really was at fault here together with, not the monetary side of the government operation, but the fiscal side. we were printing enormous amounts of money, not flowing through conventional lending channels, as monetary policy would typically have it. we were simply stuffing money into household income channels, which is something that we needed to do. nobody knew how long the pandemic would last, whether vaccines would be effective. we did what we needed to do. we definitely cap the economy from falling into the abyss, and that was great, but it did have inflationary outcomes. now, you have people looking at those paychecks, looking at the price at the pump, feeling like they are behind the eight ball. the truth is they are really not. you have seen a lot of people on

both the upper and lower end of the income spectrum see their paychecks go up significantly. at the lower end, a lot of that was to get people back to work. in february, based on the dated that came out last week, we really did see people come off the bench and come back to work in those low-wage, low our jobs. that will result in having the averages come down somewhat. we saw no average wage growth last month, and that was because we added all of those low income, low-wage jobs back to the equation. at the higher end, you have seen people pick up some decent incomes. that will continue for a while. but it has an end point. the question to ask is why will employers continue to increase wages if people are coming back? matt: the competition is no longer there.

daniel alpert, great to talk with you today. managing partner at westwood capital. the u.s.-listed chinese stocks are plunging. we will talk about that. i'm looking at a headline crossing that the nfci will remove russian securities from corporate bond indexes, as well. e-commerce operator jd.com is having its worst day on record. we will discuss why, next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. with jon erlichman. our stock of the hour is jd.com,

feeling the effect of the slowing chinese economy. the golden china dragon adr fund is heading for its works day since 2008. abigail doolittle has the story. >> this is interesting because given everything that is going on with ukraine and russia, oil and stocks, this is slipping through the cracks. jd.com down in a huge way, the worst plunge ever. they put up a quarter that most analysts are saying is good, revenues rose by 23%, but the annual customers missed. maybe it's a sign of a global slowdown, continuation of last years of last year's slide for chinese tech stocks. that crackdown from beijing. you also have the factor that it is unclear what the u.s. china relationship is given the tensions around so many factors, especially around ukraine and russia. that could be another reason for investor to sell chinese tech

stocks. it seems to be bleeding into u.s. tech stocks. the new york faang index down sharply. the biggest losers are jd.com, alibaba, but you also have tesla jon: as much as people talk about the strategic opportunity in china, there are major inflationary concerns, just as they are in north america right now. macro headwinds. the competitive environment in china when it comes to grabbing those sales is alive and well. abigail: certainly the case, but i would argue the bigger pressure as opposed to competition is the chinese government itself. last year, this index, down 70% from its february high. all of that started with the jack ma, alibaba, crackdown on the other names. last year was a banner year for tech stocks, but these chinese

tech indexes sliding. the question is, is this a precursor of what is to come? the nasdaq 100 basically in bear market territory but not 70%. let's hope we don't see that decline here. jon: thanks very much for the breakdown. coming up, with supply chain challenges still ongoing amid the war in ukraine, we are talking with sally miller from dhl, about how the company is using automation to help ease some of it supply chain pain. this is bloomberg. ♪

>> we have over 130 driver schools across the country. last year, we graduated about 900 drivers. this year we are shooting for 2000. we have ramped up our capacity. a couple advantages from that. number one, we have drivers.

number two, they seem to be more loyal, stay with us longer. number three, their safety records are better because we train them from the beginning. jon: this is bloomberg markets. i'm jon erlichman. we had that conversation yesterday with brad jacobs. we want to keep the conversation going because there's a big question right now of how you overcome some of these supply chain headaches. sally miller is the chief information officer at dhl. thanks for being with us. i want to start with technology. as much as we have talked about the challenges globally, we have talked less about the tech behind all of what is happening now, and that is where you come in. what can you tell us, logistically, what is happening? sally: we are seeing an explosion in e-commerce. that has created smaller, more frequent shipments. we are having historic labor

shortages. and we have a tremendous investment by venture capital firms in supply chain technology. so, we have an accelerated digitalization strategy to lead the market, adopt these technologies, and help us be more efficient in these changing times. our customers expect us to be the thought leader, so we are adopting and piloting a lot of different technologies. matt: how do you deal, in that case, with the russian situation? a lot of your packages go through that part of the world. do you stop your operations there, pull out completely? sally: i am specifically focused on the u.s. and canada. i cannot talk about our operations -- matt: can i mail something from

moscow to buffalo with you right now? sally: i cannot answer that. matt: how about new york to leningrad? sally: that you cannot do. matt: so you are not sending things to russia from here, but you may deceive things. sally: possibly. jon: the other thing, when we think about the technology and how it is changing the landscape, a lot of people have seen the rise of robots, for example, at amazon. i know that you are working closely with boston dynamics. those visuals of robots working hard is something that people -- that we will continue to see? sally: yes. we are deploying robots that work alongside humans, also robots and autonomous vehicles that have to be separated from humans. our investment with boston

dynamics is with the unit that you are showing currently on the video, that unloads curtains from trailers. that is very labor-intensive. sometimes the cartons are heavy. the stretcher robot from boston dynamics helps with our labor challenges, making the rules for our associates more value added than the redundant manual work. matt: what are your labor challenges looking like right now? so many companies have had to raise wages in order to fill positions. it is difficult even then. what is dhl looking like in terms of labor in america? sally: it is a challenge. we cannot get the labor to meet our needs. we continue to ensure we have a great safety first culture. in terms of technology, we are

finding that people like to work in environments where there is more technology deployed. we are seeing lower turnover when they are working with cobots and robots, and it is helping us to keep people and attract people to work for us, but it is a very tight labor market. matt: thanks so much for joining us. sally miller of dhl talking to us about their role in the supply chain. it's really important. i guess it is not yet clear what their role is in terms of russia. a lot of that is very much a changing landscape. for jon erlichman, i'm matt miller. this is bloomberg. ♪

mark: european leaders met in versailles today for a two date

summit shadowed by russia's invaded of ukraine. ursula von der leyen spoke to reporters. >> we will rethink energy. we have two get rid of the dependency of russian fossil fuels. we need massive investment in renewables. this is also an investment in security and independence. mark: ukraine and russia failed to make progress in halting the war and reaching the vast differences between them during their first high-level talks since the russian invasion again. almost half of the citizens of kyiv have fled the capital. that is according to the key mayor, who says the population