haidi: good morning. we are counting down to asia's major market open. shery: the top stories this hour, the world bank slices global growth forecast and analysis a $170 billion crisis fund -- and announces a $170 billion crisis fund. haidi: the central bank needs to move quickly to raise rates and

it should not rely increases of 75 basis points. shery: support for small businesses as the economy faces headwinds from covid lockdowns. we are saying u.s. futures rebounding as they start creating in the asian session. -- trading in the asian session. financials and energy leading the gains. financials seeing the best again in a month. we are following the philadelphia semiconductor index which gained, chinese avr's up against pressure today. double-digit losses given that they are delisting from the u.s. stock market. wti prices are under pressure. they actually close above $108 a

barrel in the new york session. we had libya shutting down the biggest oil field which said -- sent prices higher. u.s. natural gas at a 13 year high. look at the 70 plus percent gain we saw in oil prices in the past year, the gains for gas have tripled, given the supply concerns. you would think that would affect the consumer, but it is interesting to see in wall street earnings result of my credit card spending has surged in the raising rates, despite the gas prices continuing to rally. it has been interesting to see how a chart up for bad debt really is lingering as the historical lows as people in the u.s. continue to spend their money and reopening since the virus restrictions have been

lifted, they continue to spend their money. haidi: it is interesting in terms of conflicting signals. not as intuitive as you would expect it to be. there are a lot of concerns about global growth and when we start to see these slowdown conditions, we are seeing the world bank cutting the global growth outlook, a lot of that is due to the russian invasion of ukraine and the outlook when it comes to central asia and parts of europe as well. they are not expecting 2022 global gdp to come in at 3.2%. that is a lower from dayton where prediction of 4.1%. they are preparing the new 15 month crisis response package. it is an indication of how worried that they are. it is about $170 billion to cover april 2022 through june of next year. 50 billion of that is to be deployed in the next three months. that is a bigger package that they have deployed in their

covid-19 response. there is an ongoing concern considering that we are going into week eight of the russian invasion with no signs of letting up. in addition to the covid zero restrictions in china. let us get more analysis on the outlook from the world bank as well as in china. let me bring out kathleen hays, and stephen engle. the world bank cut global gdp expectations. how much of that is due to the war in ukraine. there are other factors at play as well. >> some of those other factors linked to the war in ukraine. let us go over those numbers again. back in the middle of last year, the world bank was looking for 5.7% gdp growth. it was cut to 4.1 percent before russia invaded ukraine. it has cut to three point two.

nearly a full percentage point. a very dramatic cut. it is due to the fact that they expect major contractions in russia, in ukraine, neighboring eastern countries. if you go beyond that, you can see that they are talking about this broader shock. broader shocks vacancy in asia. this rapid supplies of commodities. you cannot produce as much and there is not as much to bite. it costs more to get food and gas. financial stress on companies that fall behind and maybe they cannot get credit. if you are an exporter, that is kind of bad. they noted poverty in a's -- east asia pacific, and only because of this, there is also the lingering impact of the pandemic. that is in many asian nations. there is the federal reserve rate hikes. they see china's growth a bit

more optimistic than ever of wall street economists. back in october they saw 4.4% -- 5.4%. we can expect a lot of that is going to go into the rebuilding of ukraine, getting them back on their feet. . it will be interesting to see the chief economist at the world bank and as we hear david speaking tomorrow and the imf, how much they think that could be needed for people in countries, especially where there are a lot up or people who cannot afford to buy food. subsidizing the and getting food to people in a food crisis, many policymakers around the world are concerned about it. shery: let us talk about china, the forecasts are getting farther and farther away. they are rolling out new

measures to support the economy. >> we could see even more measures because if you look at those numbers from the first quarter, they gdp growth of 4.8 percent beating estimates, you know where he and february compensating for the drop-off that we saw in the monthly numbers in march in particular with consumer spending. unemployment was up as well. many economists are saying that april will be even worse as course -- as we have these lockdowns and no indication that the zero covid policies of china's central government is going to ease up. a total of 45 cities are now imposing either partial or total lockdowns on some 370 million people. much of that in the eastern industrial areas of china. 370 million people. they have an impact on the growth number. the pboc in conjunction with the

regulator out with a statement last night introducing and rolling out at least 23 new measures to expand lending to people in what they call the flexible employment space. at that his taxi drivers, truck drivers, online shopkeepers and the like to get them cheaper and easier loan to keep afloat as well as targeted lending to help small to medium size enterprises that are getting hit hardest by these lockdowns. in the statement that we got, they are doing a real and the program or stepping up the relenting programs to allow banks to lend more to hard-hit areas. that statement saying that could contribute around 57 billion dollars to the economy. the numbers were ok. 4.8 percent growth. some are saying that it is not passing the smell test. have to see the monthly numbers in april and go forward to see

how hard these lockdowns are truly hitting the chinese economy grade anecdotally, it is hurting. haidi: let us take a look at our asian markets. include a bit of holiday trading disruption. qe stocks trading lower by about .4%. -- kiki stocks trading lower by about 4%. combating inflation without creating an recession. -- a recession. rate rises as it seeks to contain the inflation expectation. we are watching sydney futures at the moment, we see a bit of a move to the upside. we had student trading in u.s.

stocks and a little change in terms of the pricing action there. swinging between both gains and losses as investors corporate -- absorb results. nikkei futures up, watching the yen, posting for biggest losing streak in a century. 127 is the level we are sitting at at the moment. we had 12 consecutive sessions of losses when it comes to the yen-dollar trading. >> good morning. russian president vladimir putin has decorated the army units that ukraine has blamed for crime. he has given them the name of guards assigning heroism and valor. trainings say350 bodies --

ukrainians say 350 bodies have been collected in bucha. protests have been calling for the resignation for weeks as the country economic crisis grows. movies have downgraded sri lanka's economic safety after citing foreign debt. a wave of political demonstrations and energy industry members say that libya's largest oil field was closed after protesters gathered at the site commanding that they prime minister quit. other facilities have been suspended for the same reason. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries.

shery: fear is winning over grade according to carol pepper who says growth names are being hit hard. we hear from her shortly. the world bank casts a forecast for global growth and the war in ukraine. carmen joins us. this is bloomberg. ♪

haidi: take a look at the ethics space, we continue to see -- fx space, we continue to see losses that we saw last week with the aussie declining. not to mention potential fed rate hikes. a bit of a else back, the euro holding steady after three sessions of losses against the west dollar. japanese yen the weakest since 2002. this has to do with the potential of risk off sentiment across markets as well. over russia's invasion of ukraine, bringing our policy editor kathleen hays standing by what they world bank's chief economist. >> we are pleased to have a

special guest joining us on the day that the world bank cuts its gdp forecast so dramatically. she is the world senior vice president, carmen, it is great to have you back. all of the press -- off of a full percentage point. looking for 5.7% gdp growth. when you see a growth -- cut like that, rather than the more gradual cuts that they world bank would make, does this suggest we see more cuts? is there a downside risk to this slowdown in the global economy? >> we have gone through a once in 100 year event, we are going through it. china has resurfaced. we have a major pandemic. we have a war. i think it is safe to say that the forecast has to be taken with a grain of salt. what is clear is that the risks

made on the downside. the array of disruptions from china's lockdowns, from the impact yet to be fully felt on the russia and ukraine war on food prices. on global supply chains. if brad came to worse, could there be another episode of financial -- if bad came to worse, could there be another episode of financial contagion? it would not be ruled out. the point i am making is we are living in a period of exceptional uncertainty. >> you have been talking about intensifying your warnings. the debt crisis, financial contagion, food shortages, and a

lot of concern about that leading to social unrest, political instability. do you see that this is the kind of thing that does create the debt crisis in emerging markets that becomes more systemic as it concerns growth globally in markets? >> what your asking is will this be the straw? that broke the camels back? -- will this be the straw that broke the camel's back? they have seen that rise, they have seen significant slowdown in growth. they have seen both fiscal conditions deteriorate, poverty reduction slowdown, they were not doing well and then comes covid. doing worse. now comes the war. i think that sri lanka is a

clear illustration of a country that held on for a while. the big question was will it default ultimately, it has. it is hard to predict speed but the direction for many developing countries is a troubling one and i keep harping on the term that if you look at the low income countries, they are about more than half of them are already in debt to stress. >> the package that david, the president of the world bank, created, can they arrest any of these forces? do you feed it into these countries who are facing genuine food crises where there is

concern about unrest is growing? >> food crisis, he can go back to the french revolution. the price of bread. food prices have been on the rise and we are not on the crisis mode like 2008, not yet. how does the world bank provide support? support for social safety nets. when food prices rise, very often the government panics and puts on price controls, that is very costly and also not very effective. mechanisms to help those people affected. it is through social safety nets. that is a big emphasis of what the bank does. haidi: you said we are not in

crisis mode and you look icon -- look at countries elect sri lanka, it is very close. there is a sense that the price pressures are creating lyrical pressures and they are feeding into each other. how worried are you from that aspect of being able to rein this in and what the world bank and actually do to help? >> is very troubling. look, bad times read discontent with governments. they also breed all kinds of civil unrest. if you look at the indices published by freedom house. what you see is a decline in democratic values.

the idea that especially as the low income countries are disproportionately and middle and come countries are disproportionally affected -- income countries artist personally affected by high food prices and slow growth, and governments that are overspent. you cannot do much about it. it is social unrest, it is something to be concerned about. shery: are there any regions that the world bank is more concerned about than others? how does that factor in to the allocation of resources? >> for different reasons in a nutshell, sub-saharan africa is the source of concern. africa, sub-saharan africa is hard-hit.

the middle east countries are also going to be hard-hit. it is hit by the sharp rise in wheat prices, fertilizer, they are very impacted by the war in ukraine and relatively newer entrant into the areas of concern is central asia which depends very much on russia. it depends on russia for anything from banking to transfers. in general, very close decree ties. >> one last question, china slowed down. this perfect storm of the negative forces, how is that going to affect emerging economies? >> you and i have had these

conversations. i argued that one of the things that really helped emerging markets in the aftermath of the global financial crisis of 2008 was china's vibrant double-digit growth. china's growth in commodities, they did a lot of lending to developing countries, they were big engine. the engine is stalling big time at the moment. the implications for emerging markets range from china becoming more circumspect in lending to the trade relationships and commodity effects. haidi: it has been great to speak with you. a lot more ahead, this is bloomberg. ♪

>> twitter shares posted the biggest gain in two weeks after launching a poison pill defense against elon musk's bid to take the company private at $54.20 a share. apollo global management has discussions about backing elon musk's bid. starting his own fund, darren dixon triggered a string of exits from top ranking black executives good he was at the head of global capital solutions. he is starting an infrastructure focused fund. haidi: make interviews coming up a little bit later. new zealand minister for export growth is discussing the

strategy of reopening borders. the chief executive on the road to recovery, the growth strategy moving forward. a number to come, this is bloomberg --

>> everyone is focused on headline inflation and how it has not peaked. what is really going on is the labor market has not been this tight in many decades. if the labor market is too tight we are continue to strengthen and if wages continue to strengthen we are not going to go back to 2% inflation. haidi: that is the former president of the new york fed speaking on inflation. still top of mind for inflation

-- for investors. a fear of a group of punishing growth names, carol, great to have you with us. it is something that the market is preoccupied with. as we spoke to the world bank earlier, economic expectations is so uncertain at the moment. how do you see past the uncertainty for the opportunities? >> you have to look at what we do know and what of the things that we do know is that the ukrainian or has changed the game of the west form of defense. you could defend yourself by inviting authoritarian regimes to the party by having trade with them and business with them. that strategy failed because putin became -- came across the border with tanks and started world war ii go. we see defense stocks as a great

place to hide during this uncertain period. in war and a pandemic are not things we can economically forecast. you have to forecast rather and see what can we do while these offense are happening to the best of our ability? we start looking at defense stocks. >> how do you work around prices? >> there will be a difficulty, a winter of getting enough oil and gas and the price spike and will continue. the world is awash in oil, they have a massive oil discovery, the shale in the united states and on our side of the planet there is 20 of oil to go around for the short term solution. the longer-term solution will be between the entire world off of oil and gas. that will be coming because once the war is over we go back to the fact that the planet's

temperature is rising and we have to substitute renewable energy in the next five years in order to not fry the planet. there is going to be a uniting factor that will come together and shipped how the energy market is playing out. there will be some changes in the commodity prices in the short term. haidi: your positioning long-term for renewables. how do you get the best exposure for now? >> the world is not going to pay attention to this trade in the next 2-3 years. but your money on the oil and cast off if you are looking to do that. in the long run, that is going to go the way of the dinosaur. in the short-term, you can make money on it if you want to. haidi: how do you play the supply chain shortage and find

the companies that are going to come out well? >> great example is apple. they created some silicon chips that they could control the supply. you see the regions of the world breaking into supply pods. the united states will probably take supply from mexico and latin america as opposed to asia. other countries start developing their own supply chains and they can rely on. things like war and pandemic are not controllable no matter what we do. they are going to continue to keep happening. you see a different kind of globalization, not so much on the supply chain basis. it is no longer are they just in time theory. we have to plan. haidi: what else do you like in big tech? given what we have seen in bond markets?

>> are like cybersecurity stocks, they have done extremely well, look at ets like bug. google is purchasing my jeanette -- maginec? cloud strike is doing well. in times of fear, even so, within this spherical period, there are stocks that you can look at that will do well doing -- during fear. you want to hold stocks that are the wonderful growth companies that i love so much and hold some stocks like cybersecurity, the fantastic defense companies, building on the john flynn and stinger missiles that is helping ukraine defend itself. building the patriot defense system that was sold to taiwan.

a lot of opportunities to look at areas where you can still make money as the war drags on. keep in mind that the fear can reverse very quickly. if we get some sort of settlement and the work goes away, which i hope does for the sake of all of those poor people, you can have the markets bouncing back. shery: ceo of pepper international with her outlook for the markets. it is time for the morning calls. u.s. facing a 35% chance of a recession in the next two years. the fed will have a hard time sticking a soft landing for the economy as they try to cut it monetary policy without triggering a downturn. the biggest challenge is in slowing wage growth without also driving higher unemployment. the pboc's triple cut under the strategists partners saying that the 25 basis point cuts for most

banks is more symbolic than impactful. the property sector would benefit more from policy support. demand is weak and developers are under a lot of stress and those issues can be solved by monetary policy alone -- cannot be solved by monetary policy alone. haidi: washington says to expect more sections on russia in the coming days. we hear from leon panetta on why keeping up the pressure on moscow is so crucial. this is bill burck. -- bloomberg. ♪

>> the world bank has lowered the global growth forecast to three point 2% from 4.1%. it includes russia and ukraine. the world bank president says the $170 billion funding package will be bigger than the covid-19 response. the debt prices to some countries to worsen this year. janet yellen will attend some

meetings in washington after u.s. officials threatened to boycott the meeting if russian officials attend. a senior official said she will take part in the discussions focused on the economic fallout in russia's war in ukraine. the city's -- hong kong's official is the only candidate nominated for the executive. he takes power after an uncontested election next month. 1500 people are eligible to vote for the next leader and more than half have nominated him. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. haidi: vladimir putin has shrugged off the sentience on his officials that the economy has withstood the pressure and the situation is stabilizing. >> we can say the sentience towards russia has failed.

the economic strategy did not work. the initiators could not get away with the sanctions. i am talking about inflation and unemployment growth and economic dynamics worsening in the u.s. and european countries. haidi: we spoke with the former defense secretary who says wash in and allies must continue to apply pressure through sanctions and the supply of weapons. >> the most important thing for the united states is to remain united with our inner allies to bash with our -- with our nato allies to squeeze them and enforce them and provide the weapons of are absolutely essential if the ukrainians are going to continue their brave fight against the russians. that is the most important thing that the allies can do and continue to reinforce our position in nato.

we are taking the right steps right now, the most important thing is to try and give the ukrainians what they need in order to see if we can bring this war to an end. >> president biden said most recently an $800 million installment of heavy weapons. can the president go as far as he needs to without congressional authorization? he has done this under his own discretion. >> having worked in the executive branch, the power of a commander in chief to do what is necessary to protect security is pretty broad. besides that, i think that the president has been in touch with the leadership in the congress about the steps that are being taken. i think the leadership, the bipartisan leadership is supportive of the steps he is taking in unifying our allies. i would assume that the president has some room to continue to provide what is necessary to the ukrainians.

>> you were with us about a month ago, we talked about the possibility of negotiations with the russians. you said what the russians understand is when you inflict harm. >> make no mistake, diplomacy is going nowhere. unless we have leveraged, the ukrainians have leverage. for you get leverage is by going in and killing russians. this is a power game. putin understands power. he does not understand diplomacy. he understands power. >> there has been able of power exerted in the month period by the ukrainians. quite a few russians have been killed. how far thursday or -- how far further does this need to go or is it possible at all? >> i think we have entered a very important phase of this war. i am considering it to be three phases.

the first phase was the failed effort by the russians to invade and take over ukraine and they failed at doing that and ukrainians put up a great fight to protect their country. shery: leon panetta speaking with david westin. gas above the seven dollar level after surpassing eight dollars for the first time since 2008. gas supply concerns with oil also continuing to rally on the asian sector. libya shutting down the biggest oil fields and that has sent prices higher. we have corn nearing the highest on record. not only because of the war in ukraine and needing to conserve supply, but also because fertilizer prices are rising and that is hampering production here in the u.s.. gold is under pressure but it is under a high rate it is being

factored into the market and inflation concerns rising. iron or rallying to the eight month high because we have seen data in china where we could see some stimulus measures coming out of beijing. haidi: more tightening ahead for the rbn. we heard from the governor out in -- you should expect more tensioning measures to come after the biggest rate hike in 22 years. the move by the fed was about tensioning as opposed to the level of the end rate. when it comes to the two years and 10 year bonds in new zealand, in australia, we have a new survey saying that the two

year-10 year cohort stevens by 103 -- stevens by a 103 cohort basis. as low as 80 basis points. we are watching fact given that we saw treasuries going into the overnight sessions with a yield spread exceeding 40 basis points in that trading session. let us take a look at the day ahead, the bank of new zealand expecting to raise rates further in the coming quarters. the governor says the global challenge is to combat inflation without creating a recession. there is bank of australia is releasing the april monetary policy meeting today and the northern territory racing commission is revealing whether to allow cryptocurrency to be used in online sports gathering -- gambling. when it comes to a boom in dealmaking, the numbers are

staggering. within a global slowdown when it comes to the northern hemisphere we see the bulk of the dealmaking action in acquisitions but the attention and a volumes we see is a much more focused on australia. taking a look at some of the numbers, new zealand has 56.4 billion dollars worth of deals since january 1. according to bill burck data. that is the highest volume to any start to the year since 2000 -- according to bloomberg data that is the highest volume to any start to the year since 2000. this is on the back of an incredible year last year, some very large transactions because similar conditions remained. this is the pace of monday transactions in this part of the world. shery: you are coming off at the back of wall street earnings and we saw it was a lackluster quarter when it comes to losses.

globally speaking we are talking about a total percent slowdown in global dealmaking already this year so that australia and new zealand is doing so well. it is an interesting divergence. coming up next, twitter launching a poison pill defense to stop elon musk from taking the company private. this is bloomberg. ♪

shery: bank of america joins wall street rivals for the booze in trading as market volatility searches. better-than-expected first-quarter results. gains in trading last week. china's bank president is stepping down after nine years in the position. it will be assigned to another post effective immediately. the concept china steps up efforts to root out corruption in the financial sector and keep risks in check. the indian conglomerate is set to be owing a merger between two

publicly traded software firms as it seeks to compete with local digital giants. they could consider the deal as soon as this week. they combined market value of both firms is about $22 billion -- the combined market value of both firms is about what you do million dollars -- $22 billion. an investigation against amazon will be led by the attorney general. amazon will copublished -- will publish the results once completed. elon musk made it 43 billion dollar a solicited offer to take the company private. sarah frier joins us with more on this. how would this financing work? >> we do not know yet that apollo is going to help elon musk but it is one of many firms

that is discussing the option of doing so. elon musk is the richest person in the world and he does not have a lot of cash on hand. it would look for a partner in a bid to own twitter or financing or he may have to sell tesla stock to get there. it is still early days in the process, the twitter board put in a poison pill. anyone who tries to buy twitter shares on the open market after 50%, it gets really expensive for them. that is a lengthy process and making sure that anyone who purchases twitter does it with the board in negotiation. they are saying that we would want to do it in an negotiation with somebody else. haidi: what is the timing in terms of the window that elon musk can react to all of this? >> he can do it at any time.

the poison pill is in effect for a year. this is a moment where twitter is in play. we should expect development to occur over the next few weeks, other possible bidders getting into the idea of acquiring them or partnering with elon musk as the case may be. we could see any number of scenarios play out in addition to musk losing interest and pulling his shares and twitter which is also a real possibility. shery: the latest on twitter and elon musk. we are following cathie wood's calls on tesla. she has been a big supporter with her art investment fund. she is making a call for the ev maker by 2026. with the price at around $1000 that would be more than quadruple the price.

contrasting with some skeptics think tesla falling to as low as $150. this is after tesla hit what is a $3000 by 2025. arc investment management seeing more positive sentiment around tesla's perspective. a capital efficiency. that call sending the tesla stock to can triple -- or drupal. quadruple. haidi: estimated to be worth $11,000 -- 11,000,000,000,000-4,000,000,000 ,000 dollars. the biggest component when it comes to the course. look at what people are saying

about tesla. tesla share prices could drop to as low as $150. plenty of other ev's on the road are competing successfully. we know that what cathie wood says, the market tends to listen. interesting to get those range of calls for tesla. very controversial and divided when it comes to the price target. take a look at the broader markets. little change in new york at the $43.91. a bounceback in the asian trading session for futures which are a higher rate at the moment. we saw banks and energy leading the gains. wti under pressure. $107 a barrel. haidi: we speak to oakland

airport chief executive on the road to recovery, the growth strategy moving forward as new zealand looks to reopen borders and welcome tourism back. that is a four-day break australia, daybreak asia is next. this is bloomberg. -- this is daybreak australia, daybreak asia is next. this is bloomberg. ♪

haidi: good morning. we are counting down to asia's major market open. shery: our top stories this hour. the world bank slashes the global growth forecast on the invasion on ukraine and has a response to massive crises including covid. the fed warns