will deploy chemical weapons in ukraine. president biden made the comments leaving the white house this morning to head to europe. mr. biden will go to two summits thursday with nato, the g7 and the european union in brussels he will try to rally allies and partners behind his administration's tough approach to russia. commerce secretary gina raimondo says the united states is prepared to step up sanctions on russia if it's in putin continues to impose warfare on ukraine. the secretary spoke at the bloomberg equality summit. sec. raimondo: we always knew that the power of sanctions and export controls takes time. yes, we are thinking of the next piece of escalation, what i think we need to stay strong and vigilant and focused on enforcement, because he is already feeling pain. mark: the secretary also says

china could face dire consequences if it helps russia. in texas, firefighters are making progress in battling wildfires that burned an area almost five times the size of manhattan. the blaze has covered a combined area of roughly 65,000 acres and has destroyed more than 150 structures. some sections have been burning since march 12, as bone dry brush and gusty winds created dangerous fire conditions. the proposed gateway rail tunnel between new york and new jersey is expected to compete for some of the $2.9 billion in grants that the biden administration is making available for infrastructure projects. transportation secretary pete buttigieg said that projects with regional or national significance are eligible. the gateway project is projected to cost $12.3 billion. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more

than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> it is 1:00 p.m. in new york and currently 4:00 p.m. in london and 2:00 a.m. in hong kong. i am caroline hyde. welcome to "bloomberg markets." stocks and bonds reversing rally causes after bonds bear the brunt. oil pushes back higher. biden hit steve up, taking a tough stance on the russian invasion -- biden heads to europe, taking a tough stance on the russian invasion. the latest on brussels from a economist. how is the geopolitical uncertainty affecting wall street?

bonuses up last year, but with deals on ice, what next? we will get the state of the city's financial standards. might not get the clock right, but i can get you where markets are currently trading. equities off .6%. we are seeing families --seeing finally some respite. nothing changed apart from the dramatic nature in terms of some of the selling pressure we have seen him bonds. slight search for safety. there is still concern about russia and ukraine. the dollar up .1%. new york crude pushing higher by 4%. another volatile day as we see u.s. supplies fall back ever so slightly. we want to bring you something that caught my eye. as the war in ukraine persists,

chair powell suggested the central bank might hike rates more aggressively. michael mckee spoke to mary daly on the impact of the war. mary: the invasion of ukraine and ensuing difficulties, first ukrainian people, but we should think about the effects on the economy, it is definitely a global headwind in the u.s. with the domestic economy, i see a risk to inflation, further upward pressure on prices, gasoline. we have seen it at the gas pumps. caroline: president biden is on his way to europe joining the summit thursday with nato. the g7, european union, all of that in brussels fuld he is expected to try to rally allies and partners around his administration's tough approach to russia. let's bring in annmarie hordern, who is following the president live from brussels. it is a tough balancing act once again.

we are worried about chemical weapons being used. we know that the united states in no way wants to be saying they will in any way had on conflict with russia. annmarie: it is a balancing act, and it will be one when the president touches down in brussels. he is en route over the atlantic on air force one. he wants to make sure he is rallying his partners, and up until this point they have moved in lockstep when it comes to the sanctions against the kremlin. but they are at this point where many countries are pushing for harsher sanctions, but how much harder could the likes of europe go when they are so dependent on russia for natural gas as well as oil? that is going to be a tricky balancing act for the president. at the same time, making sure they keep unity and the united front because they want to show resolve against president vladimir putin. caroline: resolve, certainly. where are some of the divisions in the moment, annmarie? annmarie: the divisions mostly

come down in large part to natural gas. you have countries even in the baltics that rely on russia for a lot of natural gas. and then you have the likes of germany who say we are just not there yet. it was astonishing to me that you had the german economy minister going over to qa tar over the weekend signing these lng deals. you can see that germany is working hard on the future and try to loosen it from russia, but they cannot do it overnight. it is not physical possible that -- it is not physically possible for germany to shut the lights off on russian gas instantaneously. united states is going to be working with european allies for the same reason as well, shoring up liquefied natural gas. some of that will come from america as well. energy has always been one of the key issues and is still a key issue, and that is because

it is the lifeblood of the russian economy in the lifeblood for putin's continuing to fund the war. caroline: and one that he wants to be funded in rubles. can you talk about the demands for payment for energy in russian currency? annmarie: his comments were that he wants to make these demands, that if you are going to buy natural gas from russia, you have to pay in rubles, especially if you are on a list of unfriendly countries. remember weeks ago russia came out with a list of hostile countries to russia. now we have the central bank in the next week or so to drop plans for how it could be enacted. we will continue to pay for natural gas in euros and dollars. this comes down to the contracts, caroline. unclear at the moment if this would be possible or if those traders in charge of the payments would actually start to

consider paying in dollars, pay in rubles. caroline: annmarie hordern, stay well in brussels. coming up, as the federal reserve tightens policy, home prices, mortgage rates, they've been pricing in those moves. this is starting to see a bit of a spike. we are going to dig into some of the analysis. this is bloomberg. ♪

caroline: this is "bloomberg markets." i'm caroline hyde. sales of new u.s. homes fell in february for the second straight month, suggesting that high prices may be keeping buyers on the sidelines. we want to get more insight on what is happening underneath the surface. you have a wealth of data that you can bring to us. is this a buyer strike?

>> so there is no evidence of a buyer strike. these are supply-constrained markets. there are more homes in construction that we added a very long time. garage doors and windows. it is difficult for them to purchase. caroline: the most extraordinary things, complete lack of supply, not to mention washing machines. is there a labor shortage here? michael: certainly labor, across all of the elements of the industry, it is -- when we look at the headline numbers, sales are down. it is a supply constrained. new home sales is contributing to a decrease in inventory in existing homes because those buyers who might buy new homes are buying in the existing home

market as well. caroline: what data might you look at to measure the demand side of this? if you have a supply-side shortage, how are you seeing the same line of people desperate to get the new family homes? michael: we measure the entire u.s. housing market every week. the percentage of homes that get listed and go into contract in the same week, it is at a record high. it is over 30% of the homes happening right now. they are going immediately into contract. that hasn't backed off at all yet. caroline: even as we start to see mortgage rates increase can impact could that have, will that have? we are hearing the federal reserve saying we will hike rates. michael: we can look to 2018 for the last time rates rose. 3.9 to 4.9%. inventory, available inventory,

10% in 2018. prices did not fall. that is the pattern that we would be looking at for this second half of the year, year-over-year inventory no big way. maybe 10% off the record lows. caroline: the u.s. is not a monolith. what is happening, if you can, state-by-state, region by region? are we seeing the cities start to heat up again? are people coming back from the suburbs and returning to work? what is the nature of the change? michael: big demographic shifts in the sun belt states, expensive places like california to some of the cheaper markets, it is actually underway. but what's interesting is the inventory shortage is everywhere. the demand is across the board and across all price points. even while those -- the migration shifts are underway,

these are not -- the hot housing market is not ever in the country. caroline: great to get your analysis. great data continue get at altos research. still ahead, the megamerger in the cannabis space. a ceo will be speaking with us. $2 billion acquisition of columbia care. joining us in a moment. this is bloomberg. ♪

caroline: this is "bloomberg markets." i'm caroline hyde. let's talk m&a right now. buying new york-based clinic care for to be the adults in one of the biggest cannabis

purchases of the year. ceo charles bachtell is with us. it is all about reach, charlie. what is it, 17 states you will now be in? charles: yeah, and thank you for having me, caroline, nice to see you. you are absolutely right, it is about crating the scale, depth, and access to growth in the future that will allow us to jump to the leadership position in cannabis. caroline: talk to us about how one gets that leadership. is it focusing on already-legalized states, doubling down on states underway in the regulatory change? how do you see that unfolding? charles: absolutely, and what happens with a combined footprint is it gives us access to all of those states, the most important states in cannabis, the ones that are relevant in driving the majority of the industry, but also those that are further behind in the

development of that catalyst from the transition from medical to handle use. transaction gives us access to those spaces tomorrow as well. incredible footprint where we get to apply our proven brand execution. we have the number one set of brands and the brand portfolio in the industry as well as our sharpened skills on the retail front, the much larger retail footprint. really good position. leadership on brands, leadership on retail largest combined revenue of any operator in the space. caroline: as i look at this space evolving in the store opened across from bloomberg now that offers cbd chocolate and thc, even, i'm interested in how important the brand is. how much are you trying to tempt new users?

you get them comfortable in this basin understand one brand over the other. charles: i don't know -- it is almost fundamental brand building, where it comes from quality, availability, and execution. you have to have brands that have the quality and build the trust with the consumer consistently and that are always available. that is what we really like. we have done this on a smaller scale with a strategic footprint we have now but we get to bring these brands that have built that communication, that conductivity with the consumer base to 17 states, all 10 of the largest states and with high market share. that is one of the differences. you combine this with 4 number one marketer positions in stock markets already. we have created that depth where

we are always in front of the consumer and the products are on the shelves and they are picking our products and we will continue to accelerate that. caroline: what is the fastest-growing part of the brands you have? is it the edibles? where is it that is growing faster than many would anticipate? charles: i think the most traditional category of fl wers maintains the largest market share but it is giving up her percentage to the other factors like vapes and edibles. those categories in particular are showing the highest growth rate. caroline: is there cost pressure in terms of the cost to get it onto the shelves? is that the supply chain you currently face? charles: sure, we are feeling some inflation pressure on the supply chain. where we are feeling the most, we saw softness in the second half of '21 and the beginning two months of the year so far is

in their share of the consumer's wallet, inflation impacting the consumer. we are seeing that in stores as well. caroline: how inelastic or elastic is demand? ift fes w to you, you put it on one side, but our people looking for more luxurious products? where do you see people gravitating from the price point? charles: it's a great question. our approach to this is making sure reviewed the consumer -- making sure we meet the consumer whether consumer wants to be met. we have a value brand that is more cost-conscious, a high-quality but affordable brand. we have premium and/or luxurious approach to cannabis as well. meeting the consumer where they want to be met and allowing us to protect margins by offering products at these various price points with margin protection

built in based on production approaches. caroline: how it is the administration allowing the consumer to meet where they want to be met? charles: each state is different. it is one of the complexities of the industry, but also one of the challenges that turns into opportunities. when you can navigate this state-by-state regulatory patchwork, it creates an opportunity to create success and depth in these markets today that put human ability -- the key is the leadership position today that allows you to be that choice of the future investor, the future consumer, when it inevitably opens up. caroline: who is your key competitor? is it the other producers that are looking to own this space? are you going to see more m&a in that area? charles: i think there is a small group of tier-one

multistate operators in the u.s. if it is competition at this point, it is in the u.s. it is not with international operators. there is a small group of us that have been able to navigate the regulatory complexity and improve operational execution, build scale, and our stretching and growing that delta between tier one and tier two. caroline: we thank you. cresco labs ceo charles bachtell , great to have time with you. time for the "bloomberg business flash." one of the favorite meme stocks, gamestop, has kept the rally going. shares of the videogame retailer were up-to-date. the gamestop chairman says he has raised the stakes for the company almost 4%. in china, tencent has declared that the records era for tech is over. they embrace the government's

new model of stricter oversight. tencent's revenue growth, just 8% in the last quarter. ubs will allow some of its united states employees to work remotely full-time. estimates are 10% in the united states going remote. more than 70% will be in hybrid roles. ubs has 20,000 employees in the united states. the world's largest food maker will quit making food and russia now nestlé will quit making brands and russia. and that is your business flash update. quick check on the markets. bit of a down day after a phenomenal rally. we are pulling back across the board, down 1.1% on the dow .

41 points lower. yesterday it rose more than a percentage point. maybe a little bit of reallocation. pushing down across the board. it has been an unprecedented wrapped across the bond market. this as we continue to see oil in a particularly volatile manner. the commodity space in the likes of oil pushing higher as we see the supply side indicators not looking so good. the government report showed crude dropped and storm damage causing supply risks. we will have more on the wall street space as well. talking about a bit of m&a. how does that affect your bonus in 2022? this is bloomberg. ♪

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mark: i'm mark crumpton with bloomberg's "first word news." russia is demanding unfriendly

countries to pay for gas in rubles. president putin has ordered the central bank to come up with a system to mechanized payments within a week. ukraine says russian hackers are attacking logistical lines including those delivering food and humanitarian support. officials say the tax which have been mostly unsuccessful are linked to russia's ground and air campaign. malware has been targeted at disrupting deliveries of medical supplies, food, and clothing. judge ketanji brown jackson is facing another day of questioning as the senate committee considers her nomination to the supreme court. the hearing concludes thursday

with testimony from outside legal experts. democrats have narrow control over the senate and that means her confirmation as the first black woman on the supreme court is all but assured with a vote promised before the senate break april 9. justice clarence thomas missed court for the third straight day today. he has been hospitalized since last week with an infection that is causing flu like symptoms. the court says justice thomas does not have covid. he is the longest serving member on the court. 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. ♪

>> welcome to bloomberg markets. caroline: with the war in ukraine about to enter its second month, nato pledges to help with nuclear threats. with a 20% jump for bonuses on wall street last year, will that be sustained? after a disappointing outlook, shares of adobe plummeted. >> let's get a quick check on the major averages. the s&p 500 not far from its lowest of the session.

at the end of the day, we are still talking about the plan to fight inflation and higher rates which is worked against those stocks. the s&p has seen a group over that. higher oil prices generally weigh against the sector as well because we continue to monitor the headlines over ukraine. there was great analysis done by bank of america it is watching the story in europe and the long-term changes to the investment breakdown of european markets based on everything playing out right now. whether that is a broader focus on defense or renewal will place. -- renewable place. the idea bank of having a plan b , that index coming into today

had rallied more than 20% since the invasion of ukraine by russia. caroline: europe led the charge when it came to the energy transition. now no wonder people are looking to pour money into that area of investment space. the report also looking at sentiment in the moment. it hit rock bottom when you look at the retail side of things. >> let's keep that conversation going. president biden is on his way to europe. he is said to join on thursday with members of nato and the eu on thursday. let's get more perspective.

our next guest has written about the russian economy extensively. let's talk about what could potentially be achieved as the leaders come together from your opinion. >> thank you for having me. the first thing i want to mention is the functions that are -- sanctions that are implemented so far are not likely to be effective. they are based on two wrong assumptions. the first is if you punish oligarchs, they will get mad and go to vladimir putin and tell him to stop the war. the power goes the other way around. it is vladimir putin's kgb friends who run russia. oligarchs are vladimir putin's puppets. the second false thought is that the people will miss mcdonald's and overthrow prudent which is incorrect because most of russians support russian war in

ukraine because they are brainwashed. they are very idealistic. they think if they are saving ukraine from nazis, they will trade off higher gas prices saving their brethren from nazis. caroline: i'm sure this is deeply emotional for you. i'm interested in your perspective of -- the likelihood that you need to see -- what do you think the next steps are likely, you have written a large about how the west has miscalculated putin. are we still miscalculate him? >> you have to ask the right questions. the right question is who is

white and where putin and what are his objectives? his objective is to restore russian power. ukraine is the first steppingstone in achieving the broader objective. once you realize that there is no going back to vladimir putin, that he is not going to stop at anything, that he's going to level them with bombs, he will do whatever he has to do to conquer crane. once you make that mental step, you have to think harder about how to stop him. you mentioned energy sanctions on russia. >> we're trying to talk about

the european dependence on energy coming from russia. whether or not european nations want to or can shift away. i wonder as we watch the continued escalation here, at what time does that conversation start to change? different weaponry being used, what are you watching closely? >> i think you have to be proactive not reactive to putin's game. the first step is to get together a civilized world and figure out how to solve this big issue. it would be great if next week president biden takes leadership and talks to his counterparts to countries who depend on russian energy but also countries who can supply energy and where

russia needs to be cut off. my understanding is that so far, gush regulations on lng, the revised. -- those need to be revised. caroline: thank you for joining us. coming up, adobe is hurting from increased competition. shares are down. that's the stock of the hour. this is bloomberg. ♪

caroline: time now for our stock of the hour. adobe is under pressure as the company forecast fails to impress wall street. >> the numbers more actually that bad. the estimate for the second quarter was $4.4 billion. they came in at $4.34 billion. those don't seem like huge disparities. the eps estimate $3.32, came didn't -- came in at $3.30.

it doesn't seem to be having a huge effect on the stock. it comes down to what adobe has been dealing with in the past. the stock down 40% from its peak in december. the creative suite comes down to competition and pricing. >> there is an exclusive club of stocks that have rallied for the last decade. we have seen this weakness for the year, those subscription clients are pretty sticky historically. the analysts seem to be watching the competitive landscape right now. >> they commented specifically on -- making a lot of that progress. that is earned them some price target cuts from a lot of wall street. deutsche bank going to $5.75. it is the idea that they have a signature product that creative

suite that we know is so popular from adobe, but where they go next? as we have these new competitors, they're also talking about revising prices for the creative suite. there is clearly room for the market share to disappear a little bit. >> thank you for the latest on the adobe stock selloff. coming up, we will discuss with the new york state comptroller. this is bloomberg. ♪

>> the average wall street bonus

increasing 20% last year to over $250,000. joining us with more is sonali basak. >> we're joined now by the new york state comptroller who just released the analysis of wall street bonuses. this might not last. that's the big story. what is your view going forward? >> it's great to be back with you. you are exactly on point. all of the volatility in the market, the weight 2022 is starting out and the big disrupter this invasion of

ukraine by russia, it's making everything unpredictable. we have a long way to go before the end of this year. given that this is a record number for the bonuses, i don't think there's any reason to assume we are going to break it next year. >> some of these bonuses were the highest levels of the bank. we have seen major pay bumps for the ceos, investment bankers. we talked to the -- about raising minimum wage, that wasn't the case for the banks we cover. what do you think about the disparity? >> there is no question about the disparity between those at the top and those at the bottom is growing. that creates other concerns in terms of equity issues. the difference between salaries on wall street versus the rest of the new york city economy and the workers, the wages are like

five times the average wage for the private sector. the context we have to keep in mind is that we like wall street being successful from a new york perspective because we get the tax revenue that comes from that. we get the benefit of those at the higher end spending their money. the new york city economy's lagging. folks do well, we want them to spend their money, we want them to get the small business is going and broadway going, travel. that's why it's important that we keep the jobs of the sector. we like to have the tax revenue that we get from wall street. >> the decrease that we see in

the headcount, is that because the biggest firms are cutting jobs or because people are moving elsewhere? >> we couldn't put a handle on that. the fact that it was only a loss of 600 jobs, that to me is basically a stable workforce. while there were some jobs that were outsourced to other states, maybe those were some of the folks at the highest end, the vast majority of jobs are still here in new york because this is where people want to be. new york city has a lower percentage than we have had going back 10 or 20 years in terms of securities jobs based in new york. when you have a loss of only 600 jobs on that, that shows good stability. >> i want to ask you about your stance when it comes to russia and investment. you have said that you directed staff to prohibit all new

investments. what does that part of the portfolio look like and how are you handling those assets? >> when the war broke out, we said we were going to freeze any new investments. we were making an assessment of what we considered to be a risk a portfolio we continued -- consider to be invested. we quantify it at about $110 million so it's not a significant exposure. we have updated the directive that i have given to the staff. we are now moving to divest all of our russian holdings with public equity and fixed income. the value of what we had when this all started has gone down as the russian currency has gone down as well. we are moving to fully divest our russian holdings. >> how are your conversations

with money managers going? have you been talking to them about their divestments on it comes to russian asset about the ability for them to buy or at any new assets and their exposure to the russian sovereign wealth fund or any oligarchs that have or may be sanctioned on their lp base? >> we are having those conversations. some of those pots of money are more opaque than others. any of the managers using our money, we have made clear not to use any of our money with investments in russian companies. the other step we have taken is to engage the companies we invest in that have activity in russia. we have said this is a risk, you need to evaluate it so some of the big names mcdonald's, coca-cola and so on they have been responding to our call to pull back their operations in russia. more of that is going to continue. that is an appropriate concern.

that puts our investment at risk if they are operating there. we don't want to do vest from mcdonald's and coca-cola, but we don't want them operating in russia. >> quickly, what about the sec proposal? we have this era where we are trying to change our energy sourcing and reduce reliance in the u.s. and europe from russian energy. what does that mean in terms of the way you look at your energy investments and the push to become greener in this country? >> we have a climate action plan we have been implementing. we are evaluating our portfolio sector by sector starting with energy. looking at the question of transition readiness. we have divested some of our energy holdings in coal, shale oil companies. we are continuing that process. the sec requiring more

disclosure is helpful to us as an investor to evaluate where we want to put our money. to evaluate what risks there could be to our portfolio if we continue to stay invested. having the data, having a standardized approach to disclosure is helpful to us as an investor. i was pleased with what the sec has put forward. >> thank you so much. >> thank you for that helpful interview. as that was happening, we were running headlines. tied it to what many were expecting to hear more about the national security advisor jake sullivan basically confirming that we will see more sanctions directed at russia heading into tomorrow as western leaders come together. there was an expectation we could see more news on this.

we have already seen sweeping sanctions, but the crackdown expected targeting oligarchs and political figures in russia. some also noting that the u.s. has told china not to circumvent russia with respect to the sanctioned activity. caroline: this is quite the global game. notable from our previous guest, saying unless you get sanctions against the energy side of things, not much is going to change. jon: lots to continue to watch for. this is bloomberg. ♪

mark: judge ketanji brown jackson says if the u.s. senate

confirms her, she would rule from what she calls a position of neutrality without any agendas. she is facing another day of questioning as the committee considers her nomination. >> as a lawyer and a citizen, i believe strongly in our constitution and the rights that make us free. what that means to me is an understanding that although we need accountability and there is crime, we also have a society that ensures that people who have been accused of criminal behavior are treated fairly. that is what our constitution requires. that is what makes our system so exceptional. mark: democrats narrow control of the senate means her confirmatione