brown jackson as a historic milestone for women and people of color. speaking at the white house alongside judge jackson and vice president kamala harris president biden said this without so much sunshine on so many young women, so many young black women, so many minorities. the u.k. and germany are putting aside differences over imposing tougher sanctions on moscow in a show of unity for ukraine. the nations say they will send the war-torn nation more weapons and work to ramp up pressure on russian president vladimir putin. after talks on downing street with british prime minister boris johnson german chancellor olaf scholz spoke to reporters. >> we are trying to send those rapids -- weapons that are helpful. we will continue to do that. > th -- successes by the ukrainian military show we sent

effective weapons. >> chancellor schulz added that unity is key in the eu, the g7, and nato and it is something mr. putin did not expect. a top russian official is a slamming the sanctions imposed on the country speaking on his telegram channel. russian security council deputy said the penalties may qualify under certain circumstances as an act of aggression and give russia rights to self-defense. he called the measures part of a western "hybrid war" against russia. french voters had to the polls sunday in an election far from certain to return president emmanual macron to power. mccrone has tried to put himself in the center of european and u.s. efforts to end of the crisis in ukraine since late last year and only began campaigning in earnest about a week ago. recent polls show his lead over far right candidate marine le

pen is narrow. the only goldman sachs banker to go to trial has been found guilty of all charges for his role in the epic looting of the malaysian funds. he faces up to 30 years in prison. in 2020 a goldman unit admitted it conspired to violate u.s. antibribery laws and pay more than $2.9 billion, the largest penalty of its kind in u.s. history, and more than $5 billion globally for its role in the scheme. 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 am mark crumpton and this is bloomberg. >> welcome to bloomberg markets.

>> i'm romaine bostick in for matt miller. romaine: global food prices are surging as of the war in ukraine chokes crop supply. paying for some gains for others. we will take a look at kroger and why they're stocks are at a record high. and we hear from canada's finance minister on why she says trudeau's plan is fiscally responsible. jon: let's get a quick check of the major averages. the s&p 500 was a modest gain. trying to make up for certainly some big selling russia we saw tuesday and wednesday. when it comes to sectors like tech that were really under pressure those days you are still seeing cautiousness. we watch the fight against

inflation and what that means for previously loved growth stocks. to a certain extent some of the buying is coming through energy stocks with oil a little higher after the recent selloff. that get us -- gets us to our four what it is worth segment. whether it is oil or other commodities we have talked about inflation reality. we have a chart on what is happening with food prices, a surge like we have never seen before. when we look at the you in food -- the united nations food price index, obviously, we are monitoring the situation in ukraine, that has not helped when you think about the influence of wheat prices, sunflower seeds. but even before we had the situation in ukraine we were talking about labor shortages, obviously, supply chain headaches. you see fertilizer prices as well. this is becoming a serious global issue. romaine: yes.

we have talked a lot on the u.s. side. every time we get cpi data we look year-over-year numbers. buying basically basic staples at the supermarket. as you go down the income ladder to some of the lower income areas of this country ended lower income areas of the world it becomes a lot more critical to the global economic picture. let's continue the conversation and get some insights out of the green capital economic advisor formerly with the bank of england. let's talk about the economic ramifications. some of the inflationary pressure we have seen with these stocks are commodities -- or commodities, a lot of these are grain commodities. we are starting to hear a lot of anecdotal evidence from emerging-market nations and others that this is having real economic impact. john: it has. unfortunately, we will have a lot more.

the regularity referred to, the lower the income of the household or the power -- border --poorer the nation, the biggest percent of the budget they spend on food. that has been established as economic law, called ingalls law, formulated in the mid 19th century. this means the less well-off you are the more you are going to suffer. this is something that was touched on by the fed this week when vice chair nominated lael brainard spoke on the issue of inflation impacts on various families. so, unfortunately, there is more to comment at this is what this report says. there could be another 20% increase in food prices over the next year. we have next year's planting season for grain and wheat in

the ukraine. that will be impaired by the conflict. so, this discuss of another 20% increase, we have not seen the effects of in races in the last couple of aunts in the u.s. passed on. -- of increases in the last couple months in the u.s. passed on. this will be measured in human suffering in many parts of the world. jon: when we think about metals and the ability to store some supply, food, perishables, and the next landing season, it is -- planting season, it is hard to know when pricing pressure eases. what does that say about the global economic story? watching stories around which economies suffer and what kind of recovery we are looking at, how does this play into that? john: you already have 750 million people around the world

in serious food insecurity according to the united nations. that number is unfortunately going to go up very significantly. this goes back to ingalls work. from a national perspective developed nations like the u.s., u.k., germany, and so on spent 10% to 15% of their consumer budgets on food. you get to some of the emerging market economies. you are talking about 40% to 50% expenditures on food. that presents a serious inflation problem. the imf put out a note a week or so ago talking about potential impacts on african countries. not just because of food prices but higher inflation rates. the potential capital drain that the higher inflation rate will have on their accounts raises the cost of capital as well. so it is doubly unfortunate. romaine: your citation of the

england -- ingalls law brings a political instability. a lot of historians have pontificated about the idea that every major revolution we have had at least in recent history has been tied a great deal to food prices and energy prices. i am curious if you worry at all that disruptions from this could lead to greater structural changes politically which would feed into the economic picture as well. john: i do worry about that. you are correct. tiananmen square was predicated by a severe food price inflation in china. libya, that area, also, a big of food price increase before the political changes there. that is a well-known political fact. of course in the u.s. we actually have the midterm elections coming up in november and inflation i think will be the number one issue on the

minds of the electorate. it is a severe problem. right now food prices have contributed as much to overall inflation at those are prices. they have gone up in the u.s. 7.8% over the last year but that will certainly pick up. look at years cpi report, 8.5% year-over-year inflation rates with a bigger portion coming from food and also energy, a major commodity that has been disrupted by these very tragic events in the ukraine. jon: john, we appreciate your time today. john rydingean --john ryding brean capital chief economic advisor. this is bloomberg.

jon: this is bloomberg markets. i'm jon erlichman with romaine bostick. canada's finance minister is defending the trudeau administration new budget that

was released yesterday. she spoke with bloomberg's amanda lange who asked her to responded to critics who say this is a egg spending -- big spending big government plan. >> that is a gross mischaracterization. this budget is fiscally responsible. it is a budget that actually says and delivers on my absolute conviction that covid and the covid recession requires extraordinarily -- extraordinary spending. we spent a lot of money. we had to and it works. canada has recovered 112% of jobs lost covid and our gdp is more than 1% greater than it was before covid. that is success and i am glad we did what we had to do. but i absolutely recognize that we needed to shift gears and we needed to say nearly to canadians, to the government, to

governments across the country, that the time for extraordinary covid spending was over. that is what this budget does. this budget sets canada on a highly responsible fiscal track. i know you and your viewers look at canada in an international context. i certainly do that. the debt to gdp we have now and the track we are on and the deficit we are showing for 2022 and 2023 and the deficit chat -- track we are showing are the most prudent of all the g7 countries. amanda: but to be clear, we have seen the end of some emergency covid measures. but we have new spending picked up. while the program spending level is below last year it is below what we would consider normal, pre-pandemic.

will we stay above the 2019 level? chrystia: what we show in the budget is a steadily declining deficit track, steadily declining debt to gdp. we also show some real and important investment in things that will grow canada's economic capacity. jon: canada's finance minister chrystia freeland speaking with amanda lange. this also on a day when we are looking at the jobs market in this country where the unemployment rate for canada is at its lowest level since the mid-70's. on one hand the finance minister is talking about fiscal prudence. but, we had a conversation with well-known economist david rosenberg today that said kannada -- canada has seen a recovery in its market.

should at least some of the money been saved for a worst-case scenario? we are expecting interest rates to continue to climb. romaine: this is a debate in other advanced economies as well. hard choices about how you capitalize on what is for the most part a good thing. but there could be potential ramifications to discontinue here. we have been talking about food prices all day long. the united nations price report today shows global food prices rising. some companies are benefiting including grocery store, kroger to be specific. those shares are at a record high on the day. that's of our stock -- that's our stock of the error coming up next. -- the hour coming up next. this is bloomberg.

romaine: this is bloomberg markets. i'm romaine bostick alongside

jon erlichman. breaking news. roger ames, the only goldman sachs banker to go on trial over the 1mdb scandal was found guilty in his role looting the malaysian fund. joining us is sonali basak. a lot of people were captivated by this. sonali: goldman sachs had already settled a record buying year. when we talk about this trial and a lot of detail was bought -- brought to the service about exactly the crimes committed. roger ames, the first banker to face prison time, 30 years could be a long time for him. he has millions of dollars here at play for himself when the crimes were committed. really, the page has turned for goldman largely because of compliance changes. it is a story we have not seen before coming to closure here.

jon: certainly the trial did provide all sorts of details on how this came about. nothing short of fascinating. sonali: especially because tim leistner who also pleaded guilty was one of the people testifying. a lot of the things we knew had happened. it is the details of how they happened. again, eight weeks that people were brought to light here on how these crimes were committed. jon: sonali, thanks. we appreciate that update. we will continue to watch that story. i want to very quickly mention some headlines from the president of the european commission ursula von der leyen, the eu will accelerate ukraine membership. the other headline we are seeing in the statement, again, just to reiterate, the eu will accelerate ukraine membership. this statement is published

following a visit to kyiv. we want to let you know that the stock of the hour, we talked about the beginning of this hour about sky high food prices around the world. kroger has put together a strong year and is trading at a new high after bank of america updated the stock to a buy. kriti gupta joins us with more details. kriti: you are seeing skyhigh grocery and food prices that will effect emerging markets more than folks at home. there are folks that will benefit. kroger is one of those. it is part of the bank of america upgrade. sure prices are rising and that means more cost for kroger but, they are able to pass on the cost to the consumer and given the amount of money in the system now, in the pockets or balance sheets of a lot of american households, they are actually able to eat some of those costs. you can see some adjusted eps

for kroger continuing to rise. it is forecast to continue rising until 2024. you can see bank of america saying, yes, there are higher cost for kroger but given the strong consumer this is not necessarily a deal breaker. romaine: yes they make money in the short term but there is -- is there some threshold analysts are looking at where consumers do not spend more? kriti: that is where wages come in. wages are increasing so you have a wealth affected their helping some consumption when it comes to walmart, costco. at the end of the day their bottom line is benefiting. when it comes to wages, how quickly can wages rise? how quickly are real wages rising to keep up with prices? right now you are seeing real wages rise but perhaps not as quickly as inflation. that is what the chart shows. the white line is inflation. -- the white line is wages. the blue line is food inflation. wages, people are still buying food. they are still buying it at the

higher prices but will the prices continue to rise? perhaps that will stop consumer spending. ultimately the worst-case canaria -- scenario begins -- becomes plunging into recession. romaine: breaking international news involving ukraine's bid to enter the european union. we are hearing from the european commissioner ursula von der leyen and. the eu will accelerate ukraine membership. right now they do not have any additional context. but she did visit kyiv and met with president zelenskyy. we will keep an eye on this for any additional context as to what an accelerated path to e.u. membership could mean for ukraine and potentially for of course the war in ukraine and russia. jon: obviously that is something we will continue to monitor. we have been watching markets as well on this friday. it does look like this issue

continues to be front and center for investors along with the story that kriti was alluding to. whether it is food prices or inflation in general next week we will watch for more inflation data in the u.s.. right now the s&p is basically flat with a three point gain. romaine: pretty much flat around the board. the big story in the u.s. has been the rise in yields this week. a massive run-up on the longer end of the curve, 29, 30 points on the 10 as well as the 30 year. that steepening has huge ramifications for the market as everyone tries to speculate as to how aggressive the fed and other global central banks will be. for john ehrlichman and i am romaine bostick, this is bloomberg.

>> you up-to-date with news from around the world.

incoming u.s. supreme court justice ketanji brown jackson celebrating becoming the first lap woman placed on the nation's highest court declaring we have made it in an impassioned speech at the white house. judge jackson: it is the honor of a lifetime for me to have this chance to join the courts, to promote the rule of law at the highest level and to do my part to carry our shared project of a democracy and people justice under law forward into the future. mark: president biden celebrated judge jackson's confirmation calling it a moment of real change in american history. european commission president ursula von der leyen is condemning today's attacks on a railway terminal that ukrainian officials say killed at least 50 and wounded 300. russian troops reportedly bomb civilians waiting at a train station to be evacuate