2023. employee -- the blueprint has attacks on the wealthy, a proposed 20% on unrealized capital gains would be the largest tax hike in history. a federal judge has ordered a conservative law professor to turn over 100 documents to the congressional committee investigating the january 6, 2021 attack on the u.s. capitol. the judge will the professor and former president donald trump had "launched a campaign to overturn a democratic election." john eastman of chapman university law school in southern california had tried to block the house committee investigating the riot from obtaining his emails. hundreds of ethiopian troops converged on a town knew the border of the northern high-grade province, days -- province.

additional troops may help facilitate the humanitarian corridor to allowed aid to be dispersed to millions who need it. there aid may also place them at risk. the two sides have come to a cease-fire since hostilities erupted in november of 2020. in china, the discovery of the second black rocks from the china eastern crash gives investigators their best chance to find out why the boeing 737 fell out of the sky. a flight data recorder has been sent to beijing for analysis. some parts of the device are severely damaged. all 132 people who were on board are presumed dead. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

>> welcome to bloomberg markets. matt: here are the top stories we are following from around the world. the s&p edging from session lows as investors wait inflationary risk coupled with nervousness over the situation in ukraine. oil tumbles as china has fresh lockdowns over increasing cases. wti crude futures dropping to $105 a barrel. plus, hp falls after a plan to buy a company in a $3 trillion deal getting further into the work from home market. jon: let's get a quick check on the major averages. we have seen the s&p come up the weakest of the day and still

down after a couple of strong weeks that have provided the situation, assuming we don't see change over the next day or so for the best month for the s&p so far. outside of a couple stock specific stories like tesla or amazon, not a lot of buyers for financials and certainly not for energy stocks as matt alluded to the selloff in oil. we are running headlines about the five-year auction that happened this hour and obviously we continue to watch for portions of the curve invert in. it is one of the factors we have been talking about. in terms of the equity watch and what is happening in the bond market, too big treasury auctions today starting with the two-year, where it seemed like the tone was fairly bearish, probably not a surprise and a market where there hasn't been a

lot of upside for treasuries right now. as we go through the five-year auction at 1:00 eastern, a couple more encouraging signs. a ratio experts watch closely is better than what we have seen with other auctions. we will have two wait and see whether or not there will be institutional investors who want to step up in a big way in subsequent auctions in the treasury market. matt: we saw the fives, tens inversion happen last week. we will continue to watch those curves, those inversions. let's switch to geopolitics, not that it has nothing to do with the bond market. president biden has come back to washington after wrapping up three days of high profile meetings in europe and after a fiery speech over the weekend that everyone has been talking about. joining us is daniel hamilton,

senior fellow at the sais foreign poly institute at johns hopkins and the former u.s. department of state deputy assistant secretary for european affairs. thank you so much for joining us. daniel: a pleasure to be with you. matt: we have all seen the clip of president biden saying, for gods sake this man should not be in power. it did not seem surprising since because him a pariah and a butcher. you wouldn't want a pariah and a butcher in charge of a country of a nuclear power as big as russia, how much of a problem does actually saying it cause for diplomacy? daniel: in washington, d.c., it is a gaffe that is spoken at a time inconveniently. in the heat of the moment, he spoke through that and it is hard to see how we wouldn't all want vladimir putin all in

power. that, case some of the diplomacy. nine words of the president off-the-cuff will not change put in's mind about what he will do. overall, the trip was intended to show solidarity. four weeks of war, we might be in this for a long time and it is really important to hang together for a much longer period of time. that was his main message, not only to the troops in poland that he visited, but he visited the refugees coming into poland from ukraine. he made a promise about the u.s. taking in maybe 100,000 ukrainian refugees. most of them will want to stay in europe, but that was a significant statement. the nato summit boosted the alliance efforts in a number of frontline states. there are further pledges for assistance to ukraine. there were a couple of side deals which might not have

gotten much attention but are quite significant. one was the u.s.-european union energy packed in which the u.s. will step up to supply more energy to europe. there is also resolution of this long-standing digital problem that the u.s. and european union had about transfer of personal data and the so-called privacy shield which was invalidated by a court a couple years ago in europe and they have said now they struck an agreement which might unhook that. details to be seen, but that in terms of the economy was heavily a very significant step going forward. jon: obviously a long list. knowing that to matt's initial comment, now that we have to look, assess the unscripted moments, to walk that the concept of regime change is one thing, but in terms of the conversations behind the scenes

with european allies, what is going to have to happen in the days ahead between the u.s. and european nations? daniel: president macron went on television and said he wouldn't have chosen those words, of course he is running for election himself. the president is saying something that we probably need to take to heart. it is hard to see in the future we will be able to deal with vladimir putin. he was formally accused of war crimes in russia itself and we will be pursuing those planes. the ukrainians and russians hopefully will reach some sort of cease-fire acceptable to the ukrainians. we are not going to broker that, but we need to be ready if the ukrainians say they are ready to have some deal that we support them. we have to be prepared for

persistent confrontation with russia. when, lose, or draw for putin, this area of central europe will remain a tense area of confrontation with russia as far as the eye can see. matt: it is already a loss. what can putin do possibly to win? daniel: what you are seeing right now potentially is maybe an operational pause on the ground and the choice russians have are either double down, regroup and be very determined to move ahead with a much worse offensive, or to strike some sort of cease-fire that would allow them to manage with a can. i don't think we know yet. next couple weeks we will have a better indication. we are at one of these inflection points in the conflict itself that will tell us where to go. matt: it looks like his only

choice is to either back out and try and save what position he has left globally or to reduce ukraine to rubble. is that the case? daniel: yes, either back stone or doubles down. i don't see -- either he backs down or double down -- doubles down. i don't think the ukrainian people in president zelenskyy would agree to letting them take over. some type of agreement that would be acceptable to everybody. matt: thank you for joining us, daniel hamilton, senior advisor at the sais foreign poly institute . looking to tap further into the work from home market, hp.

this is bloomberg. ♪

matt: this is bloomberg markets.

time for the stock of the hour. hp is making a $3 billion bet that it can cash in on the work from home trend, paying a big premium to buy a former company with audiovisual linkup products. abigail doolittle is looking at what is at stake. abigail: a company basically doubling in a day going from a less than $1 billion to $1.7 billion market cap. many of us are familiar with the products. matt: i am not necessarily in love with products but familiar. abigail: i do like my headset. they have visual products. hp is making a decent bet that work from home is here to stay and looking to diversify beyond

pcs and printers. $3.3 billion for them is like a drop in the bucket. matt: slightly off-topic, printers never work. they are the one thing that no one figured out how to make work. i may be showing my age, but i grew up in an era where in a newsroom you had a phone handset and then you broke out of range whenever somebody scooped you or you couldn't nail down a source. now modern news, people are polite on phones i don't like that. abigail: that is an interesting point. i have seen people break their handsets and that is why i like them better. you have the headset and it makes things easier. matt: do you need fries with that? abigail: politeness is never a bad thing. jon: i think you build the case,

matt, for a more professional workplace based on what you were saying. let's get onto our for what it's worth segment. you were talking about the president and his trip overseas but he also unveiled a $5.8 trillion budget request earlier today, and within that the proposed 20% minimum tax on billionaires. there been a strong push to target the mega-wealthy. the deficit falling and there is the proposal. going after a standard taxable income is part of this but the unrealized income for stock, unrealized capital gains for households with over $100 million. that is spec some frustration among those in the entrepreneurial world who have a lot to say about that kind of issue. matt: i would think it sparks frustration in general for fans

of free-market capitalism or the sanctity of private property. obviously, many people are concerned about taxes, but you can understand if the government sets you up and you are in a position to make that money and you actually do pitch in for the things we all need, like plumbing, roads, health care some would argue is one of those things. the problem comes when you hit unrealized gains. how could that be justified, and i'm sure this is a debate they will be having. it seems to have been pushed further into the realm of possibility when we started just taking away stuff from people who were very wealthy and happened to be from russia. i guess this is a really front and center conversation these days. jon: this is why we took away your handset, so you could be more measured. matt: so i could slam it.

jon: we are going to take a break. half of shanghai going into lockdown in a race to contain a covid-19 outbreak. the latest details on that developing story. stay with us. this is bloomberg. ♪

>> there is an 80% chance that the violence we will see, we should be cautious because there is a 20% chance that something happens with the new variant that is very very hollande -- very very lent -- very very lent -- >> the perspective of future covid variants.

we were mentioning before the break, virus cases on the rise as europe grapples with the variant. shanghai closing down half of the city. dr. eric toner , at the bloomberg school of public health, thank you for your time. the markets have been taking quite a bit of notice the situation in china. can you walk us through what you are seeing about the current state of covid, what they are experiencing in china and how concerned you are about that? dr. toner: across the board, we are seeing a surge of the subvariant of omicron. that is what we are seeing in western europe and beginning in the u.s. and presumably that is what they are seeing in shanghai right now. shanghai has seen the largest surge they have ever had.

although compared to what other countries have seen, it is not that large on a per capita basis. they take a very strict view on these things and locking down half of the city of 26 million people and testing everyone in four days. and then the second half and test all of them. matt: ba.2 apparently spreads faster than the fast spreading omicron period don't know much we understand in terms of the seriousness of the disease that comes along with it. do you think we need to be going back to masking, social distancing, constant testing? what happens if we just let this one run? dr. toner: it doesn't seem to be any more severe in terms of the illness that it causes in people

who were previously infected or vaccinated. since most of the people have either been vaccinated or have been previously infected, it is not likely to cause the same sort of surge in hospitalizations and severe disease we have seen with previous surges. at this point, i don't there is a need to go back to strict public health interventions, but we will have to watch it. jon: what about with the situation in ukraine? i would imagine you are watching closely at such a challenging time for so many and then also on the covid front, something we have to be mindful of. dr. toner: before the war started, ukraine had a pretty significant covert outbreak. we don't know what hit has been like since because they have not been reporting covid data for the last month or so.

we are not seeing a huge increase in front lined countries around ukraine. but no doubt it is spreading in ukraine and the hospitals are under great stress from the war and many are damaged and shortstaffed. it is not a good situation, but it is not just covid, but also concerns about tb, hiv, routine childhood diseases, water and food board diseases aired anymore like this, there are all sides of public health and infectious disease -- diseases anymore like this. there are other concerns. matt: let's take a look at what

is going on in the markets right now. we have not had a lot of movement in terms of the s&p or the tsx. we come down to the centerline of the indexes. you can see more of a gain on the nasdaq, but that is also not pronounced. most interesting thing when i came in this morning around 3:00 a.m., was the 10 year yield at 2.5%, and bitcoin at over 47,000. some interesting moves in bonds and in crypto. jon: absolutely, and certainly we will watch the market swings. this is bloomberg. ♪

>> giving you up to date with news around the word -- world. russia's ch has killed almost

5000 people including 200 children. that is according to a mayor which says only a third of the prewar population remains there. the city has been under attack since march 1 and 90% of the hospitals occluded all maternity wards have been damaged or destroyed by russian shelling and air and missile strikes. north korea looks set to detonate a nuclear bomb. the u.s. sanctions disputes with russia and china make further united nations penalties against the country unlikely. according to the south korean media, workers have been seen digging a new passageway at the site were north korea conducted all six of its previous nuclear tests. the leader warned the u.s. today that he planned to develop more powerful striking capabilities. united states says the revival of a nuclear deal with iran may not