haidi: a very good morning. i'll come to daybreak australia. we are counting you down to asia's major market open. shery: the top stories this hour, the french presidency. we're live in paris. haidi: postulate takes off a six-week election campaign with scott morrison saying it is not

about him as he is seeking another come from behind win. russia u.s. futures coming online. we are seeing them muted at the open after the s&p 500 saw the biggest loss of more than 1% last week. the nasdaq 100, the worst week since mid-march. continue to see concerns about a very hawkish fed. that has been pressuring treasuries although we have to say the yield curve has steepened slightly but the long term trend has been one of inversions and flattening because of the recession concerns. we have seen a very strong dollar recently, the highest since july 2020. on the other side, very weak euro losses. although we just saw a pop given the momentum that president macron saw in the french proles -- polls and of course headed to the runoff later this month. we are seeing oil extending declines.

we have already seen two weeks of losses with the release of strategic oil reserves not to mention the covid outbreak in china. this week we will very much be focused on earnings. we are kicking off earnings season again around the middle of the week with jp morgan, goldman sachs and morgan stanley. the expectation is they'll have a tough comparison from last year. still, this will really set the tone for the rest of the month because april does turn out to be the best month of the year usually when it comes to the last 25 years or so. but it will really be this earnings season that will set that tone. haidi: earnings season and election season. when it comes to election risk we are heading into the next few weeks of a fast and furious election campaign in australia. he saw over the weekend prime minister scott morrison causing the may 21 election. at the moment he is trailing in the polls. but in 2019, this is where he

was in a similar position at that point as well. he managed to secure that come from behind election. he is hoping he can do this again. of course the inflation cost of living is a common thread across many economies prayed also major issues like australia's deteriorated relationship with china as well as the overall dissatisfaction that we see not just with the government but also with a lot of the choices we have going into this election. we have seen a lot more popularity when it comes to independent candidates. shery: and we have seen a lot more popularity than we expected when it comes to president emmanuel macron in france. of course we do have that runoff against nationalist marine le pen on april 24. in the meantime, this recent whole over the weekend -- pull over the weekend showing he was doing much better than expected. soothing some concerns the markets have had. last year we saw the french 10

year yield rising to the highest in seven years because of the long-standing sip and see for russia when it came to marine le pen. barclays had been saying a le pen victory could mean an institutional crisis in the european union. so there seems to be more optimism on where we are headed on that presidential election in france. we will discuss all of this with laura wright in paris. tell us a little about the elections. what was the voting breakdown? laura: five exit polls have been aggregated and the hour after the polls closed. they show president emmanuel macron to be 28% of the vote. far right marine le pen to have between 23% and 24% of the vote and the left-wing candidate jean-luc melenchon to have 20% of the vote. just in the last hour, another poll shows the race between second and third place is in fact tightening. so there is no guarantee it will

be micron against le pen in the second round runoff. it could be macron against the left-wing candidate. in terms of who the other candidates have endorsed so far, that is a really important part of the run-up. where do those other voters go to if that first choice was voted out? melenchon along with another center-right when candidate, they have unequivocally said they would go with macron. another far right candidate, unsurprisingly, is aligning with marine le pen. but we're already seeing a couple of runoff polls, if it is to be macron aagainst le pen, a slight divergence between two and eight percentage points in macron's favor. haidi: what should we expect to see with campaigning over the next two weeks? laura: really this election comes down to globalization versus anti-globalization. internationalism versus nationalism. for macron, his campaign has

been more of the modus operandi. he wants to increase the retirement age to 65, he wants to see some changes to inheritance tax, he wants to see more but sector workers get hired. marine le pen on the other hand is more radical. there's talk of nationalizing the highways. she wants there to be no income tax for individuals under the age of 30. but really, the central issue in this election is inflation. it is purchasing power. the phrase you are seeing across the landscape right now, forecasts of 4% inflation. shery: what are the implications for the european union as we continue to see the war in ukraine? laura: well, russia's actions, it is still unclear when this war will come to an end. emmanuel macron tried to stand an olive branch to putin but the kremlin went ahead and admitted.

it is solidarity -- went ahead and invaded. it is solidarity. that is the approach the eu is taking. the euro is bid in early trading in australia. haidi: laura wright there in paris. from the french election to australia, campaigning is underway after prime minister scott morrison called the election to be held may 21. paul allen joins us with more. this was the latest date possible for the election to be held. does the timing tell us they want as much time as possible to be able to get this election campaign and really convince the broader public? paul: that is very much it. the timing of this date, may 21, tells you the government is fighting this from a position of weakness. it wants all the advantages of incumbency it can get. it is trailing in the balls. the gap -- trailing ht -- in the polls. but polls have been wrong before

we only have to look back to 2091, a -- to 2019, a result scott morrison hailed as a miracle. so, leaders already flying off to marginal seats to get this campaign underway. shery: with rising inflationary pressures, how much of this election is to do with economic management? paul: the government certainly framing it that way saying we got you through the pandemic, the unemployment numbers are due out this week, they are expected to have a three in front of it, best number since the 1970's. the government framing itself as a responsible economic manager. there was cost of living relief in the budget we just saw. while at the same time framing the opposition labour party as an unknown party, and granting fear to voters. labour tried to minimize the attack, taking a small agenda to the selection, and trying to

make it about trust, focusing on a couple things scott morrison said in the past, during the great bushfires of 2019, he went on holiday to hawaii and foam -- and famously said, mate, i don't hold a hose. and in the vaccine rollout he said, is not a race. so compositions don -- the government has given the opposition plenty of ammunition. shery: let's now turn to ukraine, because bloomberg has learned russia is turning to a new commander with experience in syria to leads its troops in ukraine. the general will take charge as moscow refocuses efforts in the eastern part of the country after failing to secure kyiv. for more, let's bring in tony triska. what does this mean that we are seeing a new commander, new person in charge? where does the signal where russia will go? tony: we should state at the

start that his appointment has not been announced, if in fact it has been true. it has been announced by the kremlin, but of course it has been in the news and talked about by u.s. and british officials. it fits very well with the narrative you have heard in recent days including from ukraine's government that russia is turning its attention to the eastern part of the country after being pushed back in the north and in the kyiv area, alleged atrocities not withstanding. with the ultimate objective according to the western analysis of the situation on the ground, of creating a land corridor in eastern ukraine that will connect that part two crimea which russia seized from ukraine, and which of course is officially part of ukraine, in

2014. haidi: bloomberg editor tony czuczka there. let's look at how the markets are shaping up. this is where we are at and it comes to trading in new zealand. watching the start of trading in sydney as we have that election day for may 21 announced over the weekend. kiwi stocks up by about .1%. sydney futures looking like we will see more positivity. perhaps an early gain of about .4%. u.s. stocks falling. the nasdaq adding to its worst weekly performance since mid-march. the ongoing geopolitical tensions and of course the conflict in europe and inflationary pressures top of mind. futures trading seeing a little upside. dollar-yen, we saw gains in april, a little less steep than we saw in march as we have the jawboning taking the effect of more stability in the yen. seeing a bit more gains when it

comes to dollar-yen at the moment, over that 124 handle. we are also watching when it comes to treating in fx in asia. won looking more vulnerable to the bank of korea, potentially slowing the pace of rate hikes as one risk traders are watching. let's get you over to vonnie quinn with the first word headlines. vonnie: thank you and good morning. china is defending its covid zero policy, saying it is based on science and is effective. this, after the u.s. allowed counselors to leave shanghai and urged americans to reconsider traveling to the country. shanghai reported a record of almost 2500 infections saturday, and the city has been in lockdown for more than a week. pakistani lawmakers are set to vote for their next prime minister after imran khan was ousted. his four-year run ended sunday when united opposition gather the votes necessary to remove him from office.

the opposition leader is the front runner to become pakistan's next prime minister. the imf will hold topsail sri lanka about a possible laon == friday, the central bank raised interest rates to cool soaring inflation. sri lanka's president has been struggling to form an interim government after his cabinet resigned. the fed -- she cites supply chain disruptions, partially due to covid restrictions in china. mester however says the u.s. will review -- will avoid a recession and fed policies -- inflation will not become embedded in the economy. they will ensure that. 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'm vonnie quinn. this is bloomberg. shery: still ahead, joe sheppard discusses some of the key themes ahead of the upcoming election. that is later this hour. next, george tells us how he is allocating assets as inflationary pressures weigh on markets. this is bloomberg. ♪ this is bloomberg. ♪

haidi: this week inflation is front and center. the war in ukraine. let's take a look at the key events we are watching. the cost-of-living is a major issue in the french presidential election, with macron set to face marine le pen. also, inflation numbers from china and the west, where we

could see a fresh -- and the u.s., where we could see a high. shery: march may prove to be the high watermark for u.s. inflation. consumer prices rose 8.4% year on year, reflecting elevated energy costs. and it will be a long road back to the fed's 2% target. economists expect inflation to settle at an average of 5.7% in the fourth quarter, which is about three times the annual rate seen in the years before the pandemic. and those of the major events in your week ahead. cleveland fed president loretta mester saying she is confident the u.s. will avoid a recession as the fed tightens policy although the inflation rate will probably remain at more than 2% in the next year. our next guest says the risk of a hard landing has increased, and he is still overweight on equities. let's bring in george boubouras,

head of research at k2 asset management. great to have you with us. is this because we are headed towards earnings season? how supportive will they be? george: a combination. a reminder that aps momentum in aggregate is about historical benchmarks. it is still slowing but it is still robust. credit conditions to reinforce corporate sydney developed market are still at highs. but credit conditions are still good for developed market corporate. and household cash conditions, wealth in the developed world is still high. increasing risks, of course, and plenty of those. but the fundamentals are still in reasonable shape. historical benchmarks and earnings, you cannot get too many. and the fed just has to engineer

this balancing act. qt will be the concern, there are many risks there. in the moment, early rate hike cycle. you are overweight equities and commodities. that is where asset managers have been since last year. shery: you mentioned eps targets, real rates being negative. how supportive will they be? although they are not rising right now, as this chart shows. george: look, there's nominal bond year rises. but the cash two year statements this year, combined with real negative real rates, the eps momentum and economic activity benchmarks. on the counter, you are going to get that flatness again from that 210 in the months ahead.

it reversed that the past 10 days. it is the degree of inversion and magnitude of inversion that is predicted for a recession. nevertheless, the fed has to engineer that soft landing. a bit more difficult this quarter than last quarter and last year. but that's it's aim. they are pivoting and they are nimble. but qt will be the concern, working through the broader economy. haidi: the lucky country going into this election has landed on its feet economically with what looks like another leg in the commodities boom. how are you investing around that? george: again, we're overweight commodities in the early cycle as you are with equities. and earnings expand. obviously there is an additional kicker. looks like a structural cycle for commodities. that overweight one we would expect would be maintained across the board. then there is a level structurally of additional

investment into australian. that investment came a couple decades ago, 15 years ago, and 10 years ago. more investment coming for australia, it's a secure environment for investing in the years ahead for rare earth, metal, energy, and commodities. the transition is there for new technology transition for energy. so we're very lucky in that sense, from structural. but active managers like ourselves, we have been overweight commodities for the early rate hike cycle, as many active managers have been throughout calendar 2021 because of the concerns we are seeing coming out of china, which are getting ready to do whatever it takes to stimulate later in 2022 and 2023, counter to the rest of the world. they have major issues, but they have no choice but to go in there and do a mario draghi. the china economy needs a lot of

stimulus because of concerns and the property market. haidi: do you think the energy transition is likely to accelerate if we do get a change in government here? you think there is a policy void regardless of which major party you are talking about. george: yeah, there's a notable policy void and that is politics. the old rule, politics is a bloodsport, as they say. the incumbent government has got some great economic numbers and f pivoted well enough in covid, and inflation in the developed world, 45 lows in unemployment rate. but there's a policy void going forward from both sides. there's a 2050 target for net zero from the current government and 2040 from the opposition. but broadly there is a policy void to reinforce this on both sides. like democracies around the world, it's about playing the individual as opposed to policy, and working that motive

narrative. it's no different. look at what is going on in france at the moment. it is very difficult to get out there and have a discussion. it is much easier in many different formats to avoid that. notwithstanding, economic conditions, low inflation rate, low unemployment, australia is looking at a pretty good space compared to the rest of the world. shery: george boubouras, always good having your thoughts. plenty more to come. this is bloomberg. ♪ . ♪

haidi: a look at the day ahead for australian and new zealand. australian will hold its national election on may 21 after a six-week campaign period, which prime ministers scott morrison hopes will bring him another come from behind victory. the number one issue is the rising cost of living. economists expect inflation to exceed 4% later this year. and australia's casino industry facing an existential crisis. allegations of brazen misconduct, and chinese gamblers threatening to up and one of the world's most lucrative gambling outfit. shery: the aussie dollar trading around $.74 u.s. level.

a little bit of strength against the u.s. dollar but not much after losing ground for a third session, given the incredible strength we have seen in the u.s. dollar. we are seeing the euro continuing to move ground to actually gaining ground against the u.s. dollar, as momentum continues to build for president emmanual macron in the presidential election. here's a quick check of the latest business flash headlines. elon musk wants twitter to offer more perks for users who pay for premium features. musk says twitter blue subscribers should get an authentication check mark, and it should be different from the check mark used for public fischer -- public figures. premium users should get zero ads. chinese property developer said it was unable to pay $20 millions of interest onto dollar bonds by saturday, and may miss payments on three others. in february they asked the bondholders for more time to repay, with about $1 billion of bonds set to mature this year.

their shares in dollar bonds have been plunging. plenty more to come on daybreak australia. this is bloomberg. ♪ ♪

vonnie: ukraine could see its crop harvest cut in half this year with russia's invasion extending into a critical time for harvesting. according to analysts, the lack of fuel and fertilizer is hindering the planting of corn and sunflowers, and a large area of wheat fields sown before the war. ukraine's output could be 30% to 55% lower. french president emmanuel macron is set to face national rival list -- nationalist rival marine

le pen ina reun of their 2017 contest. macron won around 28% of the first round. cryptocurrencies are more popular in countries seen as corrupt, according to the latest imf report which found that cryptos are being used to protect from corruption or get around capital controls. the finding -- 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'm vonnie quinn. this is bloomberg. haidi: campaigning is underway in australia for prime minister scott morrison, calling and election to be held may 21. >> this election, others will seek to make it about me. it is actually about the people watching this right now.

our government is not perfect. we have never claimed to be. but we are up front. and you may see some flaws. but you can also see what we have achieved. for australia, an incredibly difficult times. haidi: let's bring in our next guest says that support for either of the major parties in australian is at an all-time low. with us now is jill sheppard. she focuses on australian government and all techs. you can see from the rise of the independents going into this election, that narrow view you put forward. our previous guest said a policy void, and that is what you expect going into a federal election. how does one side or the other really engage the voters at this point? jill: the fortunate thing for australian political parties as we have compulsory voting, so we will all turn out and vote anyway. what the parties are doing at the moment is risk aversion. they are trying to not make

mistakes, they are trying to not make us upset or angry. the labour party is trying to minimize the distance between both major parties on economic issues and national security. while the other party is really trying to talk up its covid management over the last two years in order to reduce the labour party's ability to make this an election about health care. so i think what we will get from here is a fairly policy-like election that will both hold off on making particularly large amounts meant -- announcement. i think we will see gentle attacks from either side on the on the of the opposition or the government currently run by scott morrison. haidi: over the past few years, you talk about the trump victory, or what happened in 2019 in australia. the polls have taken people by surprise. how do we treat polling as we go to this election? jill: in 2019 when we were all

surprised to the coalition government remained in power, it was a really important reminder that the polls can get things wrong and we put far too much stock in them. the thing at the moment with polling in australia is the aok seems to be ahead, but that will probably tighten between now and the election. australian voters are not necessarily lyrically extreme, but they are certainly -- politically extreme, but they are certainly wedded to their parties. so i think what we will see from here on is a fairly low-key, lackluster campaign, as voters start to return to their own party. we will see probably a fairly close to election, and polls will reflect that as we get close to election day. shery: for the undecided, how much does personal leadership and charisma matter in terms of scott morrison versus his competitors a -- competitor?

jill: it is not a battle of two particularly charismatic leaders. scott morrison saying this is not a referendum on his leadership or his personality. he's trying very hard to portray himself who is a serious thinker, grew up in a house that had experienced poverty. neither politician is really trying to make this a personality contest. so i think what we will see again is few big appearances from the leaders. we will probably see a lot of local visits, as both leaders try to win votes on the ground. shery: allegations when it comes to sexism and misogyny, especially with this administration. how much will that play into the election? jill: i think the allegations that have come out over the last two years or so, they play into the hands of people who either defend the liberal party and its

ability to govern and its right to conduct affairs privately. on the other hand, right wing sympathizers will see this as evidence and increasing amount of support for their claims that this is an incompetent government. i think if the labour party can frame a lot of these allegations, a lot of the severity on the idea that the liberal party is incompetent, and paneling its own internal complex and problems. and that reflects its ability to govern the country effectively. then it can have election consequences. but for the most part, to use an american term, this is pretty much inside the beltway kind of stuff. a lot of voters in the region of australian will not be that interested. shery: this is a thing, if the women's budget really does galvanize women to come out and vote.

i guess climate is another one. it is an interesting point you make, when you finally go to the ballot box, most people are thinking they are going to vote with the person they were probably going to this entire time, regardless of what comes out over the next six weeks. so what is really -- and is that kind of confirmation bias we see every time in these elections feed into those polls as well? jill: confidence and the ability to manage government is a huge issue in australia. we have had so much turmoil. five prime ministers over the last 10 years unable to rally the support of their own colleagues, and get dismissed as a consequence. climate change is an interesting one. it is obviously a key issue among young voters, but neither major party at the moment has a particularly strong platform on climate change, or on emission reduction. the greens are a fairly strong

third-party in australian politics. the set up of our electoral system is such that they only really get representation in the upper house, the senate. and that does allow them to hold whoever takes government to account on issues of climate change. but unless they hold the balance of power in that house, then they cannot really make instrumental use of that. so what we will see probably again is a sideline of what we might call women's issues, younger people's issues, and a focus on the issues that speak to the heart of the australian electorate, and that's a fairly old electorate. we are a relatively old population. so, issues of tax minimization, health care, education for kids and grandkids, these are issues

that tend to dominate australian politics. shery: jill, it was really good to have your insights. next, china defense its covid approach empathy u.s. asks americans to avoid places like shanghai over what it is calling the arbitrary enforcement of restrictions. more on that next. this is bloomberg. ♪ is bloomberg. ♪

haidi: take a look at bond markets trading in new zealand and australia. this is what we are want when it comes to what happens next. the rbnz at decision is later this week. they are expected to raise rates by 25 basis points, as commodity prices rise, adding further to inflationary risks as well as elevated energy prices. just really expected to cement the rbnz's conviction that further tightening is needed to prevent market pressure from morphing into a wage price spiral. also likely to see signaling of more rapid tightening. this is what we are seeing what it comes to the australian three and 10 year. the aussie dollar opening .2% softer after the may 21 election was called. shery: the 10 year yield in australian topping 3% for the first time since july, 2015. quite something when it comes to that jill -- that global bond

rout. china defending its covid zero strategy as america asks americans to avoid traveling to china after what washington because the arbitrary enforcement of rules. let's bring in stephen engle. what is the latest on the shanghai lockdown? stephen: despite the fact that of course they have been in lockdown now since march 28, we're seeing a record number of cases in shanghai. yes, they are testing more, said they will find more cases, but the numbers in shanghai on saturday, we will get sunday's numbers in a little bit, is 24,9 43. that's the majority that has been reported across china for the same day of 26,355. so, it's five times the number that we saw on the first day of the phased lockdown of the city, of just under 5000. so infections keep climbing, despite the lockdown. we did see on friday reports of

those scattered protests. we need to eat, we want our freedom, this and that. so patience is running thin as we are entering what now would be the third week of what is essentially a citywide lockdown. it was supposed to be a phased lockdown in the east then spread west, but because the numbers keep climbing it is essentially a citywide lockdown. yes, people can go out if their apartment complexes do not have any cases, but still, there's growing frustration. there's also frustration from the ministry of foreign affairs in beijing, criticizing the criticism from the u.s., that is essentially asking american citizens to reconsider travel to china in particular places like shanghai, because of what washington says is arbitrary enforcement. this is what the ministry of foreign affairs spokesperson said.

we're strongly to satisfied with and firmly opposed to the u.s. groundless accusation against china's epidemic response policies and have lodged solemn representations with the u.s. side. he goes on to say it should be pointed out that china's anti-epidemic policies are science-based and effective, and we are fully confident that shanghai and other places in china will prevail over the new wave of the epidemic. speaking of other areas of china, entering a new phase as well here. in person classrooms have been halted until at least april 17 because if you cases have shown up there. also, beijing will start imposing some of the strictest restrictions we have seen since the beginning of the pandemic, as authorities in beijing obviously concerned what is happening in shanghai could and will, is, spreading to other places. haidi: it looks like cases are falling though in hong kong. stephen: that's right. we're getting down to numbers

pre the fifth wave. about a month ago we were looking at 55,000-plus new cases a day, since omicron was spreading to the city. we are now down to on sunday, 1921 new cases, including 18 imported, 65 new deaths though unfortunately. it is down from that peak. they have had this voluntary citywide testing campaign. 70% of those rapid antigen test done at home positive work reported asymptomatic. now they have wrapped up that voluntary testing, there were 0 202 at home positive. it looks as though those kind of numbers do not indicate the virus wave is on the uptick. carrie lam alluded to the fact she is likely to be announcing a

phased detailed plan of phasing out some social distancing restrictions. we could get that early this week. haidi: stephen engle there with the latest. here's a look at china's inflation picture as we wait for the latest cpi and ppi readings in a few hours. consensus forecasts are for consumer inflation to hit 1.3% in march, yet the outlook is fairly mixed. food price rushers have eased since last year, but that is being offset by ramping energy costs. chinese inflation also lagging behind the latest readings from global peers. above 7% for the u.s., euro zone and germany. shery: former treasury secretary larry summers says consensus is building towards a u.s. recession, with a combination of factors posing a big challenge to the fed in its efforts to reign in rising prices. he spoke to david westin in the latest edition of wall street

week. >> i think the risks are going way up. 27.5% this year, because next year is riskier than this year. it translates to something getting towards two thirds for a two-year period, and i would be a bit above that in my judgment. here is the key fact. we have never had a moment in the united states when inflation was above 4% and unemployment was below 4% where we did not have a recession within the next two years. so, we may pull it off, and certainly it is hugely important that we succeed in pulling it off. but the combination of overheating, followed by policy delay, followed by supply shocks, means i think it's a very difficult set of challenges and recession in the next couple of years is clearly more likely than not.

some of the banks are starting to move in that direction. are caught a little between a rock and a hard place. inflation on the one hand reseas week talking about what happens with wage growth. you would like to think when wages grow, that helps everybody. not necessarily so. larry: here is the fact, david. if you just look at nominal wage growth, just measured wage growth, and growth worker's purchasing power, up to a point, perhaps 4%, 4.5%, they move today. past that piint -- point, because when inflation is running above 4%, you start to have inflation, serious

inflation, things move in the opposite direction and higher wage growth seems to go with lower growth than worker's purchasing power. that is why i was so anxious on this show over the last year about the possibility of overheating labor markets. and unfortunately, that's seemsh average real wages having one of their worst performances over the last year that we have see shery: former u.s. treasury secretary larry summers. it is time now for morning calls ahead of the asia trading day. goldman sachs also thinking that the fed may need to hike rates even more than they had expected to to manage that overheated u.s. economy. that is according to his chief economist. take a listen. >> i think the higher rates have to go, and especially if rates have to go significantly higher,

because you see even clearer signs of overheating, the higher the recession rest goes. if you go up to 4%, the risk is higher than if you're in the low to mid threes. shery: at least asian stocks seem to be in better shape to withstand the threat of a recession. the saying asia is more prepared to absorb inflationary pressures things to macro stability buffers, cheap valuations, and strong fundamentals. asia tends to underperform global peers when treasury yield curves i still to come, elon musk posted a series of tweets opposing changes to twitter's services. details, ahead. this is bloomberg. ♪ his is bloomberg. ♪

haidi: it has been a busy 24 hours for twitter's newbold time millionaire -- musk weighed in on everything. su keenan has more. we are continuing to hear a lot from elon musk. su: for those who expected he would be quiet, they were sorely mistaken. the billionaire tweeter put out a lot of tweets over the weekend to his 80 million followers.

again, it was just last week it was disclosed he was slowly amassing a 9.2% stake in twitter to become its largest shareholder, then surprisingly a day after that, was named to the board. that caused the stock to have its biggest two-day surge since it went public. musk tweeting over the weekend his view that twitter should author -- should offer zero ads for users who pray premium features. also they might expect dogecoina s -- dogecoin as a possible payment. he also said, is twitter dying? he cited popstar justin beater -- musk is set to join the twitter ceo in the week ahead to address employee questions. notably he is asking whether the

twitter headquarters, which now has a permanent work from home policy, should be turned into a homeless shelter, since he said, quote, no one shows up anyway. again, that was just one of the more interesting tweets that went out over the weekend. the main substantial tweet seemed to do with a monthly subscription service, which has features and add free articles, the ability to retract a tweet. it cost around $3 a month. anyone who signs up for twitter blue pays $3 a month. he believes that should entitle you to ad-free serveice. shery: we are watching the commodity space. oil extending declines after two weeks of losses after of the release of millions of barrels. not to mention china's virus outbreak which has also weighed on iron ore. palladium has shot up, given that russia produces 40% of all

freshly mind palladium. the russian -- adding to pressure on prices. we continued to watch grains prices, and global food prices are surging. once in a while we watched the u.n. food price index. it is again at a record high, jumping 132 -- jumping 13% last month. take a look at this chart on the bloomberg which shows those prices given ukraine takes up about quarter of the grains trade. haidi: we talk a lot about the energy consumptions, the commodity side of this inflation story. food is such a key piece of it. given inequalities we saw heightened by the pandemic, see these spiraling food costs adding an extra devastating element and it comes to the inequality and poverty part of the story as well.

as always we keep an eye on all the commodity moves for you. the next hour we talk about inflation. talking about how the wharton ukraine is creating the economic and political crisis in asia. also talking about japan's space ambitions. ♪ ♪

haidi: a very good morning. we are coming down to asia's major market open. shery: welcome to daybreak asia. emmanuel macron to face national is marine le pen for the french presidency. we are live in paris. russia says it has a new military commander in ukraine after what the u.s. calls

putin'