haidi: a very good morning. welcome to david: australia. i am haidi stroud-watts in sydney. shery: and in new york i am shery ahn. europe warns moscow may face further sanctions of the reports of potential were crimes by russian troops. the kremlin dismisses the

allegations. haidi: eu leaders push beijing to help end the war in ukraine and not interfere with. shery: around china -- plus, omicron reports a new omicron subtype. we saw the s&p 500 with a third week of gains. in late surge on the friday session as treasury yields surged. a bit of positive sentiment in chinese companies on news that we could see chinese authorities giving full access to u.s. regulators when it came to auditing reports for more than 200 companies listed in new york. we also had crude prices following the most weekly in about 10 years. we continue to see pressures when it comes to wti crude at the open, which is now below $100 a barrel, this on news from the biden administration that they will be releasing an unprecedented amount of u.s. oil reserves. we have new levels of inversion

in the treasury yield curve, the twos and 30's inverting for the first time since 2007. this as we continue to watch the jobs numbers. the gtv chart on the bloomberg showing that we missed on the payrolls numbers, which came in at 431,000. but when it came to the february report, that was already revised higher-than-expected, and we had the unemployment number also dropping to 3.6%. haidi: and we are watching to see what the bond markets here in asia, if they will be following the moves that we saw in treasury overnight. bond yields surging as the jobs report bolstered rate hike bets. we are looking for a bounce back from the two days of losses for the asx 200, up just a quarter of 1%. the 10-year yield is holding steady, just over 2.8%.

in new zealand, a flat start to trading this morning. there are some indications that the dollar-yen signals are suggesting less turbulent times ahead. we are looking at the three-month volatility, it has come off its recent highs. the rate differential may have peaked in the near term, according to some analysts. so perhaps we will see some slightly less wild swings for the yen. shery: yes, but the big story is the rate differential, how traders are reflecting that in the markets. this as we continue to see monetary policy being the focus, the federal reserve trying to get to more normal monetary conditions. but, the problem right now is what is normal? right? what is the neutral rate? the destination right now is pretty uncertain. it neither restricts or spurs economic growth. that increases the possibility

that the fed will make a mistake. bullard referred to where the rate sits as a phantom menace. many factors could influence it, from demographics, savings, expectations, inequality, everything. it is really hard to gauge real-time. haidi: and of course, we continue to watch of the war in ukraine and how that is playing out. you have also seen the reports, images of civilian executions. there have been accusations of war crimes being leveled at members of the russian military operations in ukraine. all of this is leading to some european countries pushing for the bloc to impose more sanctions in response to these multiple reports that we have seen in troops executing unarmed civilians in ukrainian towns. and remember, energy remains the different in the room. germany among others oppose trade, maritime trade with

russia. these sections would require support. shery: let's talk about the threat of the sanctions on russia, the bloc asking for beijing to help to end the war. let's go to washington. our chief north asia correspondent stephen engle, and bloomberg markets co anchor, yvonne man. tony, let's start with you. what is a chance that these horrific images will lead to more sanctions on russia? tony: that is something we will have to keep an eye on in the days ahead. certainly the end of this week. that has been a lot of european outrage including from countries such as germany, and a country like poland, for example, which is like a frontline state in terms of taking in ukrainian refugees from the war, said the eu should hold an emergency meeting and he really discussed

cutting off all trade with russia, which of course, it is a big ask of the e.u.. there was a somewhat cryptic comment today from germany that the e.u. should consider at least discussing a natural gas cutoff with russia. another thing that is not easy for e.u. countries to do. clearly, this has galvanized europe's top leaders. there will be a meeting with nato and two foreign ministers in brussels later this week where this is sure to be at the top of the agenda. haidi: tony, some of the images we have been seeing the past few days have been from areas where we have seen russian troops draw as part of the tactical shift. what do we know as the situation on the ground, and what lies in store the next few days? tony: a lot of military analysts

and also the ukrainian government itself, president zelenskyy has been saying that the military focus now appears to be shifting to the east and the south country, after the russian troops apparently pulled back from these areas, where we are now getting these horrible images around kyiv. secretary of state anthony blinken today said that this may or may not be in fact just a regrouping, as opposed to a withdrawal. that is something you have to see in the days ahead. ukraine was saying today that very intense fighting and indiscriminate shelling, the words they used, was continuing in mariupol,

the port city that has been completely devastated. it has been hard to get aid in. that appears to be a key strategic price for russia in the war -- prize for russia in the war. stephen: we did get a stern warning from european leaders, the european commission president as well as the people counsel president. the e.u. is trying to strike a delicate balance with china. on the one hand with this china-e.u. summit held on friday, the first time they have held one in a couple of years, a virtual one as you can see here, the europeans were quite strong on the ukraine issue, where the chinese readout from that meeting focused more on trade issues. but at the heart of this meeting was pushing china to at least,

at the very least, not interfere with international sanctions on moscow. but essentially turning li keqiang and xi jinping in two separate videoconferences that they expect beijing to help end russia's war on ukraine and at least not interfere with international sanctions. there have been reports ahead of that china-e.u. summit, reports that beijing was readying some semiconductor aid to moscow and there have been some rumors bandied about of military assistance. we don't know if we got any commitments from beijing in those two different meetings. but this is what ursula von der leyen had to say following the meetings. >> we expect china if not supporting the sanctions, at least to do everything not to interfere in any kind. also on that point, we were very

clear. stephen: mr. michel countered, saying china cannot turn a blind eye to russia's violation of international law. how did the chinese have their readout on this question were glibly -- let me read it to you. they said to the current situation in ukraine is, quote, "deeply regrettable," and that beijing stands on the side of peace. again, we don't know of any specific commitments that the chinese gave to the e.u. leaders. haidi: meantime, of course the domestic priority is still trying to get control of the virus. we are seeing surging numbers, and shanghai is all under lockdown? yvonne: right, this booming city now turned into a ghost town. they lock in the western part on friday.

and parts of the eastern part are still under some tight movement restrictions despite having that lockdown being lifted on friday as well. that is because those people that have tested positive have been put on this compulsory quarantine or even monitored in makeshift facilities around the city. you also have anyone with a covid case that has to stay put for another two weeks or so. so essentially, the entire population of 25 million people in shanghai are in some form of quarantine. what kind of total will that have in the economy? that will be a big question after a brief decline in cases that we saw. we are seeing this new surge. they are testing 14 million people in the western half of the city over the weekend. we saw 13,000 new covid infections in the entire china over the weekend, most of which, more than 8000 of them, came from shanghai and are asymptomatic. to add to the uncertainty right

now, there is a new subtype of the omicron variant that is surging, it is isolated from a mild covid patient just about 40 miles away from shanghai. the subtype, according to the "global times," doesn't match the initial virus that caused covid in china. we continue to wait for more details. we are still hearing from top experts in china saying that they will continue with management. they say go fast, go hard, go solid, and china can still achieve covid-zero. haidi: thank you to all of you. let's get you to vonnie quinn in new york with our first word headlines. vonnie: thank you and good morning. hungarian prime minister viktor orban scored a crushing election victory to clinch a fourth consecutive term despite criticism about democratic backsliding, he is a support for

ukraine and close ties between him and russian president vladimir putin. he and his party are on track to maintain their two-thirds parliamentary majority. pakistani prime minister imran khan has thrown the country into chaos, calling for a first election after one of his political allies abruptly canceled a no-confidence vote. the deputy minister who is a member of the prime minister's ruling party cited foreign interference. khan then at the president to dissolve parliament, which was approved shortly afterward, a member of sri lanka's ruling party says the cabinet members have submitted resignations, following protests over soaring costs and the foreign exchange crisis. unclear yet whether the prime minister will accept the resignations. sri lankans inflation has accelerated to 19%, with daily power cuts as long as 13 hours,

as diesel runs out. hong kong's election season has begun after a two-month delay due to covid. likely contenders for the country's next chief executive include the financial secretary and the former chief executive, among others reported to be planning the run. the current leader, carrie lam, hinted last week that she might not seek another term. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: after the worst quarter since 2008, credit markets are on pace for the biggest annual loss ever as the fed rushes to sustain inflation. we will get the view from credit suisse. and the rba is under pressure to begin tightening as the fuel prices go higher. we will look at this with katrina ell. this is bloomberg. ♪

>> is a white-hot labor market. >> the labor market is white-hard. >> the economy is red-hot. the labor market is red-hot. >>. >> this is an economy and labor market that is overheating. the fed has to accelerate. >> the fed has been behind the curve. >> probably around 100 basis points behind the curve. >> it makes sense to get some 50's in when you have an economy that is moderating. >> we are going to see slower economic growth and fed rate hikes. >> i think they will do that in the next couple of meetings. >> the fed is expected to hike much more aggressively than it did in the previous cycle. >> today's report only will reaffirm that view. haidi: our guests earlier

reacting to yet another robust u.s. jobs print. let's go look at the week ahead. the fed will release minutes from its march policy meeting on wednesday, providing some insight into the appetite for a half-point rate hike next month. in asia, it is on about the rba and the rbi, both extended to stand pat, though the rba governor is facing pressure to begin tightening soon. and shanghai is planning to finish its lockdown on tuesday. record cases in the weekend could put that in jeopardy. and ketanji brown jackson is set to become the first black woman on the u.s. supreme court, with confirmations set for later on monday. shery: and food security is very much in focus given the war in ukraine. we get the u.n.'s food price index on monday followed by the council meeting in rome on monday. the index hit an all-time high last month, which could create further chaos in crop trading and push prices even higher. the number should surge once

again, and you can see in this index how high we are talking. those are the major events in your week ahead. haidi: it is all about the price pressures for the rba, under pressure to begin tightening monetary policy in two months. a stronger economy along with pre-election budgetary spending is fueling concerns. joining us is katrina ell. great to have you with us in person. there is also the fact that there is a huge energy and commodities demand in australia. that as well as what the government refers to as the information psychology. is it pushing the rba to move sooner rather than later? our expectation remains that the rba will not move much closer on the cash rate. at reena: where there are ongoing supply-side pressures, there is that high commodity prices, through and other factors, supply chain

disruptions feeding through to ongoing high inflation and fuel costs. but we are also still waiting for the demand-side pressures to pick up. we still have the subdued wage growth. i think the rba is reluctant to move until they see the stronger wage growth come through. haidi: i want to throw up a chart that shows the past year both when it comes to consumers, and businesses. if you add onto that high of gas prices, higher energy prices and higher costs overall, is that psychological fear that the fed governor is talking about, could that event the wage growth? katrina: that is the key thing we are watching as well. inflation expectations are important to watch as well, because if consumers start to believe that inflation will pick up in the rba will not act on subduing that information, that could cause a fear spiral. that is a huge concern. the rba is in a difficult spot

to catch the right time to actually start normalizing rates. shery: it's not just the rba this week, right, we do have the rba rate decision as well, but they have another issue, growth perhaps not keeping up with it what are we expecting? katrina: we are expecting that the bank of india will keep rates steady this month. what's interesting to note is whether the rba changed their stance from being accommodative to neutral. in india they have this very strong cpi growth at the moment. they have elevated food prices, the ongoing issue of high energy costs, so they will have to do something to start to anchor those elevated inflation expectations if they will not want to move on the policy rate at this stage. shery: we do have a few inflation numbers coming out this week. i wonder how the shanghai

lockdown and the ongoing infections in china will spill over to the rest of asia when it comes to the inflationary outlook. katrina: that is a good question. what we are expecting for all those inflation prints coming out this week, you mentioned south korea, philippines, thailand. we expect some sort of acceleration in those inflation prints. in addition you have the shanghai lockdown's causing the ongoing supply chain strain. well that supply chain strain is not as much as what we saw in the third quarter of last year with the delta outbreak, there is still ongoing pressure that is keeping prices high. and then coupled with that, you have russia's invasion of ukraine which is adding to the energy costs as well. haidi: this analyst said that to him, the world is looking more like a black swan event.

does the confluence of these events make you concerned that even the best economists might be mispricing the risk? katrina: what the pandemic has taught us in the past two years is that it is so difficult to see what is around the corner, and that is why it is so important, focusing on the central bank and how monetary policy mobilization, in addition to the fiscal policy, there are so many risk factors. we are seeing elevated inflation and how central banks is so important is so important. in addition, you mentioned all these unexpected events that are happening. the key thing is for policymakers to stay vigilant and respond as best they can respond potentially downside events. shery: katrina ell, good to hear from you, moody's analytics senior economist there. this is bloomberg. ♪ 19 more to come. this is bloomberg. ♪

-- plenty more to come.

haidi: taking a look at the day ahead for australia now. we are watching the free-trade agreement reaction, cutting duties on more than 85% of goods imported from india. exports are expected to hit a record 425 billion australian dollars by, june 30 as the country gains from the surge in commodity and energy prices.

and the reserve bank of a strata is under increasing pressure to begin tightening monetary policy in as little as two months, the strong economy raising that inflation risk. shery: and looking at the futures space right now, we are seeing a downside for futures after the s&p 500 and the broader u.s. stock space gained ground for a third consecutive week. we have real estate and utilities leading the gains on the friday session, although pressure for financials and industrials is lower. the treasury yield reaching new versions of inversions. we are seeing the dow futures down zero .1%. the bloomberg dollar index gaining a bit of ground as u.s. euros slightly missed expectations. although the labor market still remains resilient. our next guest says that the

drawdowns we are expecting in the bond market are of historic proportions. credit suisse joins us next. this is bloomberg. ♪

shery: we are seeing really new levels of youth curve invasion. -- the yield curve in version. the 2's and 30's inverting. first time since 2019. 5's and 30's, first time since 2006. it is really having to do with what this means for the broader economy. policymakers, bond market strategists saying, don't think too deeply about this. perhaps it signals recession,

but it would not be too immediate. we heard from chair powell saying he is only looking out to 18 months yields. the reason that we continue to watch the yield curve and the bond space is because we have seen the latest jobs report. again, slightly missing expectations. but when it came to the overall number, the unemployment rate falling to 3.6% is really showing a tight labor market. let's discuss this with our bloomberg economics and policy editor kathleen hays. we have more signals from the fed this weekend. kathleen: we certainly did. that 3.6% has already been that low three times in the past 50 years. strong labor market. the president of the new york fed, he is part of the triumvirate, the top three policymakers at the fed, on the board of governors. he echoed others who have said that the balance sheet runoff,

may begin as soon the may meeting. why is this so important when we talk about the fed moving more aggressively? ? well, as john williams reminded us, using the balance sheet is the second channel to tighten financial conditions. when you buy bonds, you will make it easier. when you start selling them, that is tightening. why do they need to get more aggressive? because they have to address a level of inflation that has become, quote, "particularly acute." the san francisco president has been in the dick: camp. she is moving to the aggressive camp now -- she has been in the dovish camp. she is moving to the aggressive camp now. saying the data shows the job market is, quote, "very strong and tight to an unsustainable level." that means it will fuel inflation. let's get to this neutral rate. our colleague in washington, rich miller, wrote an excellent piece about the neutral rate,

why it is not written in stone and what it means. he said, the fed doesn't have to get into it immediately, they can take steps to get to neutral,, quote, whatever that means. whatever that means. why did he say that? because nobody really knows what that means. people are expecting 250 basis point rate hike by the end of the year. the fed's estimate for the neutral rate, which just means it is at a level where it is not so hard that it slows down the economy, nor is it too low that it keeps fueling inflation. the range of estimates right now on the fed is from 2% to 3%. the median is 2.4%. they aren't sure either. if you are trying to figure out what is the right rate to slow down inflation, is it tough for when inflation is up 7% year-over-year? one of our guests said it best when he said, "i doubt anyone can say with confidence where neutral is."

we are trying to figure it out, the markets are second-guessing it, but that is where it stands now. shery: especially when you have loose monetary policy for two years. kathleen hays, global economics and policy editor. let's discuss this with our next guest, jasmin argyrou, portfolio manager at credit suisse. great to have you with us. so at what level of yield curve inversions will you start to worry about? we continue to see these drawdowns in the bond space of historic proportions. jazmin: it is great to be here. i would say what is more important is looking beyond the yield curve. it is true that the bond market is very forward-looking, and we should heed its warnings. because we are at a mature stage in the economic expansion, the yield curve is inverted. so the next stage is going to be a slowdown.

it is almost axiomatic that the risk of a recession rises during a slowdown. but the yield curve isn't really telling us when that will happen. it is not really giving us a clear probability of risks. what we need to look at is what the bond market is pricing in in terms of two different measures. first is, what is the peak cash rate the bond market is showing us? at around 3%, i don't think it is particularly restrictive. second, what is the long-term inflation expectations factored into bond markets? we know that after five years, inflation expectations are high, but beyond about five-year measure of inflation expectations, they are still below 3% and in line with target. those two measures are not worrying. if inflation expectations in the long-term rise to far, it means that the federal reserve will need to move policy to a restrictive stance. that is when the risk of

recession rises. we need to look at those two measures alongside the inversion of the yield curve to really gauge the risks of a recession. haidi: but these levels, given the huge run-up in rates, talking about both treasuries and australian sovereign bonds as well, are there any more opportunities? jazmin: i think what we're seeing is an historic drawdown. we really need to go back to 1994 to see anything comparable. in 1994, there are some similarities to what we're going to see this cycle. the first one is the tightening cycle that both the fed and the rba in australia pursued was a very fast tightening cycle. both central banks raised cash rate by 275 basis points in the space of 12 months. we are going to see a fast tightening cycle this time

around. not quite that fast probably, but fast. when economic developments are uncertain and moving very quickly, but markets can overshoot. that is what opportunities can arise. but i think there are some upsides to yields in the u.s. because inflation developments are not quite contained yet. . on the other hand in australia, what the bond market is pricing in in terms of the big cash rate is overdone i think. i think the bond markets overshot, with a 3% cash rate in australia, it would be very restrictive because households are very indebted. haidi: so would you be revising your position when it comes to australian bonds, because you did reduce exposure couple of times in the last two years. jazmin: that is probably the next strategy we would look very

closely at. we would prefer for australian bonds applied to u.s. treasury durational risk. we are not pulling the trigger on that yet. on a relative basis, yes, we will have to. shery: what about equities. have you priced in the bearish bond moves that we have seen so far? jazmin: that is where we have a contrarian view. the investment committee at credit suisse on march 17 moved equities to overweight. so we see upside potential there and we have increased exposure to equities. that follows the fomc meeting in march, when they were remarkably transparent with the market about their plans for tightening , thereby removing some of the downside risks from this source.

haidi: jasmin argyrou, always great to have you with us. let's get you the first word news now with vonnie quinn. vonnie: china has modified a decade-long rule that restricted its offshore-listed firms from sharing financial data. this potentially clears a key hurdle for u.s. regulators seeking access to auditing reports of chinese companies. according to chinese regulators, it removed the requirement that on-site inspections should be mainly done by mainland agencies. china added more than 13,000 new covid cases and nearly all of shanghai's residents are under some form of lockdown. the financial hub has emerged as the epicenter of the country's worst outbreak since the pandemic. also a new subtype of the omicron variant has been isolated in a patient with mild covid symptoms. u.s. secretary of state anthony

blinken says the ruble's rebound is being fueled by many permission from russian authorities and will not be sustainable. he said the capital controls were artificially propping up the ruble. the currency closed at $.85 to the dollar on friday, almost matching the rate at when the invasion began on february 24. the reserve bank of australia is facing pressure to tighten policy as inflation concerns grow. the central bank is expected to stay on hold when it meets on tuesday, but several economists have brought their rate hike expectations forward, anticipating the first increase in june. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: next, australia and india are sealing a wide-ranging economic pact as the two look to secure their supply chains and counter the threat of china.

details next. this is bloomberg. ♪

shery: your watching "daybreak: australia." time now for the morning calls. april has historically been a good month for stocks and as first-quarter earnings kick off next week, citi is looking for fewer companies to meet their expectations for the first

quarter. they expect only 62% of russell 2000 companies to deliver earnings surprises, well below what has been observed since late 2020. strategists at rbc capital markets think it is time to ease up on energy. the head of the bank's equity strategy has downgraded the sector to market wait to overweight and recommends paring back exposure to value stocks. the service show more convention in the financial sector as enthusiasm has waned for energy stocks. haidi: oil futures took a big tumble last week. the world's largest independent oil traders says current prices don't reflect the risks out there. bloomberg's su keenan joins us more. risks from russia related supply disruptions could still see higher prices? su: absolutely. last week we saw a one-two punch. the u.s.'s unprecedented release

of one million barrels a day from the strategic reserves, and the rise in covid cases in china is affecting demand. that sent wti crude down more than $14 last week, the biggest weekly drop in more than a decade. and we are seeing pressure on futures continue as asian trading gets underway, now just below the $99 mark. similar drop in brent crude, at one point it was above $140. again, the head of asian trading at vitol says prices could be higher given the reducing oil supplies from russia. but what shouldn't be forgotten, vitol also thinks that china will continue to crush the spread of covid, and that, quote,, "china will throw the kitchen sink to make sure the economy recovers."

others see less chance of an agreement on the iranian nuclear deal. remember, weeks ago there was talk that an agreement was imminent and that would put more oil on the market. that looks a lot less likely now, the trader is saying. so that is a big question for this coming week. shery: and plans by european nations to wean themselves from dependence to russian natural gas have hit a big snag. su: the big snag is the price of raw materials. the europeans' timetable to stop using russian energy is very detailed and very aggressive, but one thing they didn't take into account was the surge in the very raw materials that they need to build pipelines and lng terminals. you can see jumping into the bloomberg, steel, copper, aluminum are all commodities set to hit records. the commodity index has grown 46% in that time and the

highest quarterly search in decades. this market hike it's slowing down plans that the eu pop had put in planes, one with short-term plans to build lng resources. germany for instance has pledged to build two lng terminals. friends wants to resume talks with spain about connecting a pipeline, and the once more homegrown wind, nuclear, and solar power. this is all hitting a complication in terms of the spike in price to buildout on this land. back to you. haidi: bloomberg's su keenan there with the latest. india industry have signed a wide-ranging economic pact, cutting duties under 85% of goods exported to the south asian nation. for more, let's bring in australian government reporter ben wainscott. tell us about the significance of this deal. ben:.

it is really significant. before the trade deal was signed, yesterday in government was saying 75% of australia's trade was covered by free-trade agreements. now that it's up to 88%. also, we are hearing that there is a bit of confusion about whether this is an interim deal or whether it is the final deal. i know there are some things both sides wanted out of it that they didn't get. for instance, australian farmers are not getting the reductions in tariffs that they were hoping for with this deal. but no doubt, the timing is very lucky for the government, it comes a few days before an election is expected to be called. they are may have been generation at the end, who can say, but i think the fact is that this is better than nothing. shery: tell us a bit about how this huge resources boom will change the estrogen economy, how is it going to help? ben: prices gained cold and are absolutely soaring.

in some ways -- prices in coal and gas are absolutely soaring. in this latest budget, they have had a chance to throw money on things like infrastructure in australia, helping to alleviate the cost of living, difficulties in australia such as the high surge in oil prices caused by the war in europe. so that has been good for them. the downside, austria was one of the biggest spenders during the pandemic, and now is the time the government wants to start alleviating that date. but this sugar hit from commodity prices is meaning that they don't feel the urge right now to start reigning reining in that spending. shery: bloomberg's australian economy reporter, ben weinstock. the biden administration has accused companies of ordering oil resources. and the senior energy security

advisor to the government says the president's right to collect some companies. he spoke with bloomberg's jonathan ferro and tom keene. >> the president actually recognized the companies, the oil companies that are responding to this price environment, this world supply shortage we are in and have announced extraordinary increases in capex and reinvestment in the united states in bringing on additional production. he has recognized them and said that is progress and he prayed to them for doing that. but there are other companies, and you know that, jon, that are saying, look, i have the ability to increase production, when prices were at $130 a week ago, and said, i will not do it. he, barrel, i will not increase -- he called out some who said, even at $200 a barrel, i will

not do it. some are saying, "my shareholders are saying, don't do that, give us increased dividends during this time." there is no well that isn't profitable at $120 or $130 a barrel. if you are making a decision above $85 a barrel, which we have now been for a few months, that you can't make more investment to bring our production, i think the president's 100% right to call them out, especially when other companies are saying, no, this is exactly the kind of environment that we're are going to increase production. . the president announced we will release one million barrels a day in order to increase the certainty of liquidity in the energy markets and to make sure, there is enough oil on the market to support the u.s. economy as well as the global economy. number two, he said we are going to replenish the reserves at a time when we finished dispersing and releasing the oil, and when

the prices come down. . so we will sell the oil now at high prices and buy it back later. that gives incentive to the oil companies to say, i know that even though the u.s. is going to release these reserves, i will have a buyer in the u.s. government later on. so it continues that incentive to increase production. i think this is what we needed. we needed to put something into the system where we could -- the oil companies have said, look at exxon, chevron, conoco, they said they will increase production. 900,000 to one million barrels a day this year. that means it is only going to come on in the middle of the third quarter, to the end of the year. so we have a gap between now and then. what the president said yesterday is, the u.s. government will fill that gap between now and then.

haidi: that was amos hochstein, u.s. department of state senior advisor for energy security. watch us live and see our past interview are no interactive tv function, tv . you can even dive into the securities and bloomberg functions we talk about, and join the conversation, you can send us instant messages during our shows. this is all for terminal subscribers only. check it out, it is at tv . this is bloomberg. ♪

haidi: here is a quick check of the latest business flash headlines -- the uk is reportedly preparing to nationalize gazprom's local retail arm as soon as this week. . sources say that london may take over the struggling utility. the gazprom unit supplies roughly 30 thousand u.k. customers. chinese fast fashion app shein is set to be weighing in funding round and evaluation of about $300. it is in talks with potential investors, including general atlantic. one data provider says the $100 billion evaluation would make it where the most viable companies in the world. we are watching toyota when trading kicks off in tokyo, as the company may have bested gm again as the number one car

sailor in the united states. toyota is seeing strong demand for its hybrid models, boosted by more inventory and fewer options. still, sales dropped 15%. at the start of the week in april, in the u.s. there will be some consternation after a really tough quarter. april has turned out to be the best month in the past 25 years, since 1980 seven. the s&p 500 averaging a return of 2.5% in the month of april. earnings season will be very important for this. haidi: and there is this idea that there is no other option, or this looks like to be the least-bad option in a world where you are facing so many risks across so many different asset classes, an unprecedented confluence of events that whatever hardships are affecting global stock investors, it is probably much worse in other

markets. that is where we are seeing this goodie markets in record time. so the next hour, one australian market analyst will join about his market strategy. we will also be looking at the yen later after the drama last week. the former japan vice minister joins us.

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> haidi: good morning, i am haidi stroud-watts in sydney, we are counting down. shery: to china's market open. shery: and i am shery and in new york. graphic images triggered a push for fresh sanctions on russia. china finds a new subtype of the omicron variant will shanghai prepares to start a fresh round of