haidi: good morning, we are coding down to the major market open. shery: the top stories this hour , u.s. stocks rally and oil tumbles as a functioning at data fears about -- as manufacturing fears fed hikes. haidi: russia says kyiv is not

serious about resolving the conflict. shery: u.s. recouped as buyers emerged following -- following a three-day islam that wiped $200 million of market value. a look at the golden dragon index. reminiscent of the global financial crisis, that was just one of the sectors in today's session. s&p 500, technology retailers led the gains. holding around the 2.1% level. oil continued the decline between -- below $100 a barrel. the asian session also under pressure. we are seeing some progress on the iran nuclear talks. ongoing lockdowns in china leading to concerns about

the demand out loop. the two producer oil producers prices. the gain of 10% we saw in the month of february that was the biggest gain since 2009 or so. we are seeing consumer price inflation at the fastest in 40 years. this is in hand for the federal reserve. another thing that they will have to keep in check is the fact that we have new york state manufacturing activity numbers coming in a much weaker than expected. what does that do to the growth? that is the key question. haidi: it is where chinese assets go from here, russia talking about the brutal two day meltdown. we are seeing the cost of

protecting against further declines in every single chinese asset. there is news potential late when it comes to the you and, the report that saudi arabia is considering active talks with beijing to price some of the oil to china in the you and and that reversed those earlier losses we saw in the chinese yuan. march 10 to 14th, that boost coming on hopes that the transactions could increase. shery: key advisor to ukraine's president says there are fundamental contradictions in negotiations with russia. the war is bringing out the fence intelligence, -- defense intelligence. another round of talks? >> i think speaking to officials

here in washington, the expectations are pretty low to continue talks. there have been hot and cold science from ukraine and russia and the other side goes cold on proceedings. there is a great skepticism that talks will add up to very much given that putin's military onslaught in ukraine in use. -- continues. >> we are expecting the ukrainian president to give a rare wartime address to congress. >> he will likely renew his call for a no-fly zone over ukraine which is something that the biden administration has been a clear that they are not going to pursue because that would hurt the u.s.. aircraft in direct competition with the russian counterpart. it will -- he will call for more a and support.

to portray this conflict between one between democracy and autocracy. it has gotten a good reception so far. >> we have breaking news at the moment. we are saying that pfizer and biontech are seeking authorization for their additional booster. the companies have submitted an authorization -- application for emergency use authorization of an additional booster dose for adults 65 years of age and older who have received an initial booster of any of the approved covid-19 vaccines. this is as we continue to see the covid-19 pandemic raged around the united states. the federal reserve decision, ahead of that, withdrawing the nomination to be the next fed vice chairman supervision after a powerful democrat took away

what could have been the decisive support. kathleen is here with more on this. she has will started -- decided to withdraw? >> it is no surprise. let us start with sarah, when president biden nominated her, he and her supporters thought she would be issue in. a former member of the board of governors, she was obama's choice to be the deputy secondary of treasury. the progressives love her because she supports the fed thing attention to climate change. look at stress tests and being able to withstand a financial crisis. she has been supportive of including climate change in that. many republicans have felt that she was overstepping the bounds of the fed's mandate. the ranking republican member of

the senate banking committee, they are the watchdog for whether or not her vote could get past in the -- passed in the senate. then joe manchin, weary of pulling back on energy production. he announced he could not support her and with that, it look like in the 50-50 divide, it was not going to go forward. four nominees waiting to get approved and here is what president biden said about that. he is happy to see that jerome powell's nomination to be the chair, the vice chair, and members of the board of governors, lisa cook would be the first black woman to be on the board of governors. he wants to simply confirm them. it is a bit of a failure for biden and his team but the matter moves ahead and allows

the fed to focus on the big fed decision. let me point out something about bumper economics has stressed. we are watching for a signal from the fed about how aggressive the rate hike moves are going to be. they say look at the view of inflation, here is how they see it. they are looking at inflation expectations at a record 6% for the new york fed survey. 4% three years out. in terms of what bloomberg economics wrote, if the median number of dots suggest that inflation is going to subside on a sound and inflation expectations are anchored, we will see something like an indication of four or five rate hikes. if fed members were getting worried that the inflation expectations are offered the new york fed survey chart, they are becoming unanchored, you may see

something like the seven dots for next year for rate hikes. that will be closer to the median. one more thing. a couple of members were in favor of a 50 point basis rate hike had it not been for the war on ukraine. they are arguing that the others may be on board with the 50 basis point hike. it is off of the table now. because of that, we could see a bit of dissent. -- because of that, we could see a couple of dissents. >> we are getting this announcement from s&p dow jones industrial average indices saying that they will be removing bonds from issuers tied to russia and belarus. it is filed on march 28. that is part of the rebalancing that will be in effect on march 31st. those balances will be priced

into the index from the designated pricing. we are hearing to that decision that we would see the removal of those bonds from issuers, and that we see visibility from march 28 and that the consultation when it comes to russia's market sanctions is ongoing. let us turn to more on the markets, the chinese selloff when it comes to adrs. some losses, dip buyers are starting to emerge. the brutal 29% of slung over the past three days. our equities coverage, i am almost frightened to ask, is there a sign that we have hit the bottom? >> at this point, investors are cautiously stepping back into the market.

there was a 5% rally on the nasdaq golden dragon china index. i am not quite sure that means it is over. now everybody can step back in at this point. if you dig a little deeper, that good roast today. -- rose today. if you look into alibaba, down for the day, tencent was done for the day. there was a bit of trepidation in the market at this point. some of these companies have a lot of issues to work through. a lot of the stuff that was discussed before or the reasons behind this selloff has not gone away yet. elephant managers are coming back into the market, -- a lot of bond managers are coming back into the market, picking the right companies. that is where we saw a bit of the rally.

not alibaba and not tencent. >> what are the catalysts for the broader market, then? >> at this point tomorrow, the catalyst will be the fact that the market is going to move in one direction or another. we are bound to see a bit of volatility once the decision comes through and we find out if we will know about future rate heights as well. -- hikes as well. i believe it is pandoro later this week as well. ultimately, all of these concerns that investors have had really have not gone away. raising covid cases, geopolitical tensions, fears about -- there will be an issue for now. >> that is a very sobering

assessment and a reminder for those longer-term issues. let us take a look at how all of this is going through. regardless of the longer-term outlook, we can see the short-term boost overnight. we had account numbers coming throughout the widest account deficit since 2009. we do still have the positive lift when it comes to trading and -- 80 kiwi stocks. in kiwi stocks. we can get a temporary recovery in china. nikkei futures looking positive there. s&p futures are a little bit

softer. get you over to the first word headlines. >> saudi arabia set to be in -- said to be in active talks with china. it has accelerated recently as saudi arabia becomes unhappy with u.s. commitments to protect the kingdom. it could be a political message to washington. the shanghai government in china once a company in the main commercial districts without staff to work from home. their room and out the immediate need for a full account of the financial hub. shanghai reported 195 new cases. mike says bitcoin is likely to trade in a range as rate hike. earlier forecasts say that the

trading band of 30,000-50 thousand dollars a coin. in an exclusive interview, he commented on whether cryptocurrencies could but the impact on-- blunt the impact of sanctions on russia. >> it is wrong, bitcoin is a lifeline to people in countries with really poor stewardship on their economy. we should be thrilled that russians can get some of their money in bitcoin so they are not completely broke. >> global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. shery: coming up, we look at the latest cease fire talks between russia and ukraine as kyiv enters an extended curfew. university of melbourne

professor will join us in this hour. where to put some of $5 billion in assets under management. this is bloomberg. ♪

>> we have been cautious. >> it is a new regime we are looking at. >> it is exacerbating all of the issues that are already there. >> commodity prices, you name it. >> geopolitical risk coming to the warfront. >> harder to make gains from risk assets. >> it is a trickier environment. >> one of the longest corrections for the nasdaq since the global financial crisis. >> i do not like being bearish. >> some of our earlier guests sharing their market views. joining us now is julie biel. great to have you with us. at least some segments are starting to get concerned, and

bracing for multiple rate hikes. are you paying less attention to things like the dot plot? >> i think the challenge of the dot plot is it looks like a flight, there is a certain amount of certainty on your trajectory. it is not a great point for us to be using it to build our models and forecasts. i do not think that there is a lot of value to try to forecast it because we do not know. i do not think jerome powell knows where they're going to go, i do not think there is a on the fit as it is. it makes more sense to take a wait and see approach on the data. that will make the data easier and more clear. investors, it is important to own high-quality businesses so that you do not need to

focus on your forecast to get the name right. >> talk to me about the high-quality businesses. will it whether the rate cycle and the uncertain price pressures as well? -- weather the rate cycle and uncertain price pressures as well? >> everybody since our new not want to own the high-volume names because interest is going up. people did not own these names because the interest rates were going low, they have good earnings durability. that is a good reason to own some of these names. ones that are high-quality with earnings. technology has a focus on the government sector, they know that business inside and out and it is high level recurring revenue that they can count on and plan against. these are the types of businesses that have been able

to weather economic shocks, endemic shocks, even his locations in political conflict -- dislocations in political conflict. or you more owning great businesses -- worry more about owning great businesses. >> we got the survey by the bank of america, investors are pricing in global equities, slumping into a bear market because the growth outlook has tumbled. you are saying move away from all of these different models but i do wonder if we have to. look at what the fed does, given that we have what was counted on the bed's -- fed's push. >> i think the fed is there. if we continue to have a soccer economy, if we continue to have

healthy unemployment, the bigger question is what level of inflation is tolerable? to me, the fed has a credibility gap which is problematic. in the dark days of alan greenspan, he will talk for two hours and you had no idea what they were going to be doing. we have an unprecedented level of disclosure of what jerome powell is thinking. i am awaiting him--i am waiting for him to put out a mood board about what he is thinking. he has waited and delayed on inflation, we are not sure he is going to end up. he has put himself in a corner and if he is behind the curve, people will be extremely concerned. there will by inflation sensitive assets, if he is ahead of the curve, we will have a position. it is a tricky position that they are in. >> the economy seems to be changing in form.

you mentioned in your notes, the u.s. has fundamentally changed. >> if you look at the multiple factors, the great resignation that seems to be continuing and the nature of work in terms of hybrid or on-site. you have a bifurcation of what worked looks like. those who can work from home and those who cannot. the majority of our goods are made in china, we continue to have these massive supply disruptions. that is causing a lot of u.s. businesses to wonder if i need to onshore my supply chain? >> always great having your insight. plenty more to come on daybreak, australia -- plenty more to come

on daybreak: australia. this is bloomberg. ♪

>> let us take a look at the bond market, repricing really taking place. the most widening we have seen in years. the 10 year yield, after quite a bit of volatility across the global bond space. we saw it was pretty mixed. we are expecting the quarter-point rate increase. taking a look at the day ahead, new zealand is using diffidence to ensure that high income earners are not avoiding the high tax rate. the country is opening the borders to vaccinated foreigners.

australians will be the first to enter without needing to self-isolate. australia taking more steps to lift the ban on cruise ships. this is bloomberg. as a small business owner, your bottom line is always top of mind. so start saving with comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. so boost your bottom line by switching today. get the new samsung galaxy s22 series on comcast business mobile and for a limited time save up to $750 on a new samsung device with eligible trade-in.

>> you are watching daybreak australia. president biden well meet nato and european allies. it will be the first trip to europe since ukraine invaded -- russia invaded ukraine in late february. the white house did not confirm whether biden has plans to colorful -- travel to other countries or meet with the ukrainian president. russia and ukraine resume please fire negotiations on wednesday. ukraine -- a ukrainian

negotiator says there is room for compromise. vladimir putin said ukraine was not serious about finding a peaceful resolution. he has imposed a 36 hour curfew from tuesday night amid increased russian strikes on the capital. -- do not have the votes to be confirmed. the chances have been operated after joe manchin announced he would not support her. in a letter to biden, raskin was criticized for her views on climate change. the iranian oil company is inviting companies to look at the infrastructure. they're looking to cap reserves that are the second-biggest in the world.

global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. >> speculation that we could see progress on the iran nuclear talks leading to the continued pullback in oil futures. we are following the latest in commodities and expecting to resume -- trading to resume in london. the latest, let us start with oil which is moving another leg lower in the asian session. >> we are saying oil with a significant pullback. both traders who look at the tentacles and the fundamentals say what we are seeing right now suggests we are going to drop much lower, returning below the 200 moving average. if we go into the charts, we can see that oil is trading below

where we closed. crude was also below 100. that seems to further support the direction of oil is lower. markets are pricing in a positive outcome of the ukraine russian talks. -- ukraine-russia talks. earlier in the day we saw the decline and the stall out as putin cast doubt on the power of these talks. it looks like the direction for the next couple of days would be continued lower. another headline, saudi arabia will switch to the yuan. that is symbolic and not a truther to the dollar. it is in active talks with beijing to sell some of its will in -- oil in the yuan. >> the wild ride in nickel.

after it stopped about a week ago to halt the historic chaos. >> historic is almost an understatement. nobody in the nickel market has seen anything like this. the big shorting, he struggled to take massive margin calls to his banks and brokers on march 8. he was shorting nickel and prices rose more than 250,000 in little more than what hours on march 8. -- little more than a few hours on march 8. criticized to halt and a race several hours of trading and suspend trading until wednesday morning, this broiled the tile metal industry -- and higher metal industry. 8:00 london chase, there was

a market called prude that gave the pitch on a lifeline and they are suspending further market -- margin calls so that there is not a repeat of the short squeeze we saw on march 8. new curves in place so it is anticipated to be an orderly start. the limit is 5% at the opening but almost every trader and analyst surveyed by bloomberg expect to see prices drop. they also expect extremely buckle your seatbelts ratings. >> bitcoin has been locked in the narrowest trading range in more than a year. cryptocurrency is no straighter to volatility. the trend is likely to continue. >> let us say that the dollar

may never be the same. the biggest thing that has happened in the last 10 years, maybe longer, is when europe and the u.s. said hey, russia, of those were resorts who you thought were yours, they are not yours -- they are not your reserves. the dollar or treasury is a risk-free asset is not so risk-free. maybe if you are chinese, you are like and may not be risk-free either. i think if we are entering in a world that is unknown, where people are going to struggle to figure out what is the reserve currency? the u.s. is not going away. the dollar is not going away but it will not be the sole place. you will see this hodgepodge of assets, gold, crypto, the world is not going to flip to bitcoin overnight. you will see more people saying i want to have some of my money

outside of the sovereign. >> a lot of people are talking about the problem with scribble currency is they can use it to circumvent the sanctions. some are saying that is the point -- >> there is zero chance that the russian government can use cryptocurrency to circumvent. we are regulated by 25 different agencies. they have just as many. almost all crypto moves through exchanges. they have processes just like other exchanges. bitcoin is a public clock chain. -- block chain. they did a city on piquant and they did a 10 week exhaustive study with the security agencies, the three letter

agencies, he came up with a thesis that if you are going to design a prop to cut terminals it would look like the bitcoin -- a trap to catch criminals, it would look like bitcoin. we are looking at it the wrong way. the russian ruble has depreciated over 90% in the past 10 years. the turkish lira did the same. bitcoin is a lifeline to people in countries with really poor stewardship on their economy. we should be thrilled the russians cannot get some of their money in piquant so that they are not completely broke. -- in bitcoin so that they are not completely broke. >> it is a replacement for fiat currency, is that we view the future of digital assets is? >> digital assets is a big word. bitcoin has a beautiful lane as being in his were of value.

everyone has the right to have their fruits of your labor could be stored somewhere. if you do not trust your currency, you put it in diamonds or gold. there is also a lot of other digital assets. stable coins or digital dollars, ethereum digital networks, nfts. the revolution that is happening is not just in one lane. for bitcoin, it is a place where you store value. >> that is the head of -- digital. they covered the people, transactions, and technology shaping the world of decentralized finance. let us take a look at it is doing at the moment, up .1%.

the third consecutive session of gains. this is as we continue to see bitcoin in the narrowest range in a year. trading 10% of the 50 day moving average for about 40 straight sessions. that is the longest since october 2020. a bit of pressure on the ether. closing higher by 4%. >> i whole lot more people will be moving to new zealand, this has been a long awaited announcement. when it comes to the closing of their border for so long, we have seen that we have gotten over the peak of omicron cases. they are loosening researches of further. we are hearing from the pm saying that the border will be open to wavered nations. it will open even earlier if you

are an australian. we are getting some of those details regarding the reopening of the international border for new zealand. they will begin reopening that border to foreigners on april 12 starting from australia. we have seen that reaction when it comes to the travel stocks, air new zealand, tourism holdings as well as new zealand airport related stocks as well seeing strong gains. tourism finally will be able to return to new zealand. this applies to vaccinated foreigners, australians will be allowed to be the first to enter without needing to self-isolate. some of the other countries who fell under the visa waiver agreements will be oval to enter a few weeks from that and then visitors are expected to be allowed from other countries as well. time for morning calls ahead of the asia trading day out of the chinese stocks are overdone according to global wealth management stocks are so

attractive on earnings and the market is overreacting to the listing worries. covid lockdowns will not delay, -- will delay, but not derail a consumption recovery this year. shery: some market volatility is hitting, even the conservative or polio. down more than 10% this year. more consisted inflation -- consisted inflation. annual returns for the portfolio will be south of 5%. up next, the latest on the conflict in ukraine and how china supports russia -- china's support for pressure may have its limits. russia may have its limits. this is bloomberg. ♪

>> they are making absurd claims about maps and chemical weapons in ukraine. this is just another line. we are concerned that moscow could stage a false flag operation, possibly including chemical weapons. >> the crisis is hitting the

economy a when its expansion was gaining momentum after covid-19. our fundamentals are solid. we will be able to respond to this crisis. >> high-level officials on the war in ukraine and we are hearing from reports that ukrainian officials plan to present the united states of military equipment that they need including armed drones and air defense systems. that is when the ukraine president addresses congress on wednesday. this comes at a time when biden is expected to announce a billion dollars in new military assistance to ukraine. the wall street journal saying that the $1 billion would come from 13.6 billion in aid to your crane was included in the budget bill that president biden signed this week. -- ukraine was included in the

budget bill that was signed this week. >> foreign-currency defaults, revolution, marcus reported. what are market waters saying? will russian default this week? >> they have about $177 million dollars. they say that they intend to pay, but they could happen in rubles versus u.s. dollars. >> that is the key question. if they do pay 80 rubles, if that actually counts as a default, how will markets take it -- if they do pay in rubles, if that actually counts as

a default, how will markets take it? >> russia's outstanding bonds have clauses that allow payment in rubles. the debt that is coming to, they do not have that clause. breaking the bond terms would end up being a default. >> ukraine and russia will return talks on wednesday after an advisor to the ukraine president says it is difficult but that there is room for compromise. president biden will go to europe next week in a show of support from nato. it is good to have you with us, how much progress are you seeing in these negotiations between ukraine and russia? >> it is not look like a lot of ground has been made in either direction to come to a since of agreement or negotiation.

-- sense of agreement or negotiation. the ukraine president is more likely to hold the line, they have been more willing to negotiate on key points of like reality or recognition of crimea. from what i can tell, it has not been really any movement towards a negotiation. >> the ukraine president is expected to make a rare wartime address to the u.s. congress. what can we expect and how significant is this? >> i imagine that it will be similar statements we have seen him making a social media. the brought appeals to western countries about the need for a stronger srt. particularly, material support for the difference of ukraine. it is significant that he has a

platform to be able to address the u.s. congress and it is important because of the way that the u.s. and political structure manages their foreign aid funds. they announced billions of dollars in aid is also incredibly significant for ukraine. >> republican allies in other nations potentially do more to try and -- what can allies in other nations potentially do? >> i think that coming from a geopolitical perspective, we have done almost as much as in our power short of what russia would see as an escalation. no western countries or not allied states want to commit to actual boots on the ground or material military support to ukraine that could cause russia to retaliate.

everybody is speculating whether this could be the version of world war iii. i think at this point, what ukraine will need is humanitarian support. some sort of means of guaranteeing the protection and rights of citizens trying to flee. today, over 3 million refugees have left the country. millions more are stranded, unable to leave because of the rates of attack and shelling on civilian infrastructure. any sort of humanitarian support at this point is the best way countries in our region could be helping ukraine. >> i think what you are saying is that there is no obvious offramp at this point? the two parties are too apart of what would be a meaningful

compromise? how does this end? what is the endgame? is this the first part of empire building for putin? >> i think for putin, he is mistaken related what was going to happen. he was told this would be a short war, that russia's interests would be met through a large shock and awe campaign. that is not what happened here. the offramp is convincing the russian people that this was not a wasted war effort and that is going to require some kind of concession. something he cannot take back to the people of russia. unfortunately, i do not know that -- i think that because of the extent of the receipt meant of ukraine, -- besegement

of ukraine that they will compromise. putin will have to declare victory where there is not one. the russian government is very skilled at propaganda. manipulation and disinformation. or, perhaps, internal dissent that there is some sort of palace coup. >> great to have you with us. lots more to come on daybreak. this is bloomberg.

>> here is a quick check of the headlines. amc is buying a stake in a gold miner. it would total $56 million. it tries to get the nevada placed mine on a commercial basis. $19 billion to build a semiconductor construction site in germany. it is the start of alluring

global chipmakers back to the region. it is a part of a bid to reverse losses by developing the latest technology. amazon has one unconditional approval -- won approval to buy a movie company for $8.5 million dollars. >> some of the software watching ahead of the open, telecommunications provider unity says it is in talks to sell the company to morrison. it has been given the green light to apply for an extension and abandoning shell gas in the u.k.. fonterra falling. >> com up, why is scared

market could present rate opportunities. -- great opportunities. that is it for daybreak australia. daybreak asia is next. this is bloomberg. ♪

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>> very good morning. we are counting down to the major market open. shery: welcome to daybreak asia. our top stories, asian stocks make it a boost as the railing in chinese shares eases and oil slides. ukraine and russia set to resume talks a later as kyiv calls negotiations difficult. president biden