lunch with russia's foreign minister sergei lavrov. a senior military officer said moscow aimed to seize control of eastern and southern ukraine, including critical black sea ports while german chancellor schultz said his top priority was to avoid a war with nuclear-armed russia. the united states again is threatening china with sanctions if it offers materiel support for russia's war in ukraine. deputy secretary of state wendy sherman said china wasn't helping the situation in ukraine by doing things like amplifying russian disinformation campaigns. treasury secretary janet yellen had this to say about china interfering with russian sanctions. janet: i'm seeing them as taking steps to undermine sanctions. we've made clear that would be an unacceptable to us and made

clear that it would be unacceptable to help russia and to conduct this war. we'd like to see them do more. mark: the new york city department of education has suspended about 70 employees for allegedly using fake vaccination cards. they were put on unpaid leave with benefits. new york city mandated ininoculation for all d.o.e. staff in september. students are required to be vaccinated in order to participate in so-called high risk extracurriculars such as choir and band. ferrari is recalling thousands of cars including the 458 and 488 vehicles. while ferrari did provide details on the total number of cars involved, globally it's recalling more than 2,000 vehicles in china alone.

bloomberg data shows that china recall of this magnitude amounts to nearly every vehicle ferrari sold in the country from 2018 through march of this year. global news 24 hours a day on air and on bloomberg quicktake powered more than 2,700 journalists and analysts in over 120 countries, i'm mark crumpton, this is bloomberg. jonathan: welcome to bloomberg markets. >> here are the top stories we're following you from around the world. the u.s. stocks are falling fast and furious. stocks down just shy of 2% as the market prices in as many as four basis points high this year. this is when chair powell underlines to have any front

rate increases. can the consumer accept it? suggestion they can. we will show you what that report is telling us. a special interview coming up. the arizona coyotes, the owner will tell us all about it. stick with us. jon. jon: let's get a check on the major averages. there has been reluctance on the part of equity investors to buy as we head into the final stretch of the week. right now we're looking at the s&p down 1.8%. yes, there have been lackluster earnings, gap. as kritti said, we've seen it reflected in the selloff of stocks, stronger u.s. dollar. leaving them shying away from some of the materials. let's get into that for what it's worth segment. as we talk about this fight against inflation, beyond the

moves we're seeing from the current head of the fed, the former head of the fed and now treasury secretary janet yellen having a good conversation in balance of power with david west in addressing some of the efforts that can be taken to fight inflation. have a listen. secretary yellen: we want to do everything that we can to lower inflation and the president has announced an unprecedented release of oil from the strategic petroleum reserve in a is serving to hold it. i think gas prices peaked and now have come down some from their peak. jon: so obviously watching what happens on the oil front as well, kritti, but at the end of the day, it's very clear that central banks, whether it's in the u.s. or even here in canada, will be moving quite aggressively in the months

ahead. kritti: you are looking at food prices climbing and inflationary preaches, things like used car prices. inflation report, a lot of the prewar inflation drivers were still climbing as well. don't forget housing, rent, and, of course, wages all part of that. it's interesting to have inflation peaked but maybe but has it peaked broadly, that's the question. jon: let's get more perspective, kriti. chief economist investor at f.s. investments where she looks at the financial markets. always great to have you with us on those efforts from both the federal reserve and the government fight inflation. do you think they'll have the desired effect? >> well, kriti brings up an important point because we may have seen a peak on the year-on year numbers in march just based on facts from where we were a year ago but i don't think that necessarily means we're going to face a strong defense throughout

2022. i'm expecting inflation to end the year around 4% to 4.5%, and we are just seeing inflation continue to really hammer households with that dual food plus energy index that together is really giving household inflation of about 15%, even higher than that. i think this is the place where households will feel the pain and it's still kind of bubbling up from broad places in the economy. as used car prices have likely peaked, of course, still elevated, you know, you're seeing the rent. you're seeing it from everywhere. that was in the beige book. it's weighing on companies as well. they are just paying higher for input costs. kriti: talk to us about the savings picture here because i think am so of the cushions frb coming from the fiscal stimulus from the government but also the savings that have been accumulated. yes, they have kind of come back down. there's still a little bit of a

cushion there. is it enough to weather some of those pressures? lara: you know, we do see the savings rate fall further when the unemployment rate is extremely low so i have built into my outlook my exception is that the savings rate will continue to decline. you do -- you are going to have this push-pull over the year because obviously those core sort of necessities, inflation hits lower income households harder. those are households that have seen wages rise a little bit more. so i think as we look ahead to the year, it's going to really be a balancing act. and at the end of the day, i think what we're seeing is all of this adding up to domestic demand, right? household consumption that's going to feel very similar to where we were before the pandemic. those really robust g.d.p. numbers of 2021 are probably in the rear-view mirror, and we'll get that data next week. jon: yeah. and speaking of households, before we let you go, real

quickly, on homes themselves, how closer really going watching the housing market reaction as rates rise? lara: you know, housing is ground zero for the connectivity between rate hikes and the economy. so it's really something that we're watching closely because in a lot -- a lot of investors are scared we'll get a repeat of the last downturn when housing prices really fell significantly. i think we see housing prices moderate only slightly. the volume of housing sales is probably going to decline. inventories remain at very low levels. construction will add to g.d.p. that will be a bonus. kriti: lara rhame, i could have this conversation for hours. f.s. investments chief u.s. economist. thank you for your time and insight. coming up, we're sticking with the economy. shares of kim berle clark strong sales outlooks. we'll discuss that in our stop of the hour ahead.

this is bloomberg.

kriti: this is "bloomberg

markets." i'm kriti gupta along with jon erlichmann. we're looking at kimberly-clark shares, the highest move in over 20 years, has everything to do with the consumer. we're going to talk about can it actually last? joining us is down is jeff and shinali. in the bloomberg newsroom. talk to us about these earnings? i think what's so striking to me, we're talking about earnings season. we're talking is this peak margins, peak growth? here we are seeing kimberly-clark talk about 10 pours organic sales. we saw the same thing from procter & gamble. what is going on? >> it's an about face. something investors wanted to hear, especially from the consumer facing companies because going in the earnings season and especially with all of the inflation data, decades high for recent months seeing that. jess: how is the consumering handling this sdm

kimberly-clark, makers of huggies, they were able to move past this volatile inflationary environment and raised their sales outlook for the rest of the year. they did note there still could be potential challenges ahead. there could be potential issues with china when the diaper demand is having the challenges there. when we look at the u.s. consumer, we saw spending pull back in february. next week we'll get those march numbers. i know a lot of analysts are eagerly awaiting those. because it will have the p.c. inflation indicator and we'll have the employee cost index which fed chair jerome powell is his preferred measure to see how inflation is unfolding. he did cite that in december why they were getting more aggressive. >> i have to say i am pleased through the huggies stage through parenthood right now. join but i'm still buying plenty of kimberly-clark products. i do wonder when we look at the outlook for earnings for other players out there, the bloomberg intelligence team has been

taking a pretty close look at what the actual inflationary effects are going to look at when it comes to the end of the quarter. kriti: you know some companies will manage inflation better than others. >> and it comes down to, do those costs rise higher than the sales do? kimberly-clark is a clear exception here. when you look at american express, for example, they're bringing on new clients. sonali: the reserves didn't decrease as much as analysts expected. remember, wall street is such a big risk management here, jon. they're a lot of reading the tea leaves for what could go wrong this year and what companies are preparing here. we expect the worst is not over with. kriti: you cover the banks. we've been covering the banks quite a bit on bloomberg television and radio. what's interesting to me also, it's not about cards but loan growth as well. these are beacons of american consumer health. obviously, the health of the global consumer as well. what are the messages that the

bank earnings are telling us that we will be watch? jess: what customers are doing well in particular? you look at american express and they're bringing on platinum gold card members. those are people with money to spend. what happens when you go to the middle and lower-middle income consumer. sonali: anyone with a student loan is still under a moratorium period here. when that ends later on in the year or falltime that's hundreds of dollars that you are going to have to spend on top of inflation. so there's a question here about how much propensity there is to borrow, to do more and to get the engine running here when the reality is still there are plenty of people who may be in a tough spot and you are not seeing the borrowing. you're seeing them hording cash. join jess, just to wrap things up on the earnings front and stock reaction part of this story. i know you have been looking at what the strategists are saying about the rest of the year and the s&p performance. obviously, we're seeing quite a decline as we're watching up

this week when it comes so the s&p 500. jess: the thing is looking at the continued margin pressure. if you look it the earnings revisions, say, from bloomberg intelligence, those estimates are going up. there are those hurdles as far as whether or not we have passed peak inflation. there are a number of firms suggesting we could potentially be there. what does that look like? does it look like a 5% inflation or inflation below 2%? companies right now are trying to grapple what exactly does that look like. and when i have spoken to analysts they suggested it could be a situation when you're looking at goods versus services type companies and those service companies most likely will be the ones that will be more beneficial and would benefit from what's happening with that whereas the good companies still struggling with those supply issues can still see a bit of a struggle there trying to come out of this. kriti: well, sonali and jess. ceo carlos gohn said the renault

neeson deal is in shambles. he's in exile after he left japan while waiting trial on misconduct charges. here's what he had to say. >> i told you two years ago this is -- the heart of the alliance is the trust. the trust between renault and neeson and mitsubishi and the trust between the japanese authorities and the french authorities which happen to be a major shareholder. this trust was broken. and when the trust is broken, there is absolutely no meaning for an alliance like this to continue. so we heard a lot of stories told by the new management of renault and neeson that everything's ok, everything's been done in a brotherly way and all of the decisions are going to be made in consensus. this was baloney because, frankly, no cooperation was

taken place. there was a ridiculous long-term plan that was announced by the press. the bottom line is the alliance is in shambles. they sold the shares. now they're dismantling the share holding which frankly makes a lot of sense if you don't want to work together. let's not forget in 1999 when the alliance was signed, the company would be sharing platforms, sharing technology, working together, buying together on all of this stuff. it worked well for 18 years. except since 2018, they stopped and there is a kind of apparatus of the collaboration that is frankly not taking place. jon: carlos ghosn, former chairman and ceo of nissan.

the arizona coyotes preparing to move to a new home arena. that's next. this is bloomberg.

jon: this is "bloomberg markets." this is jon erlichman along with kriti gupta. the arizona coyotes hockey team will play the next few seasons at arizona state multipurpose arena follows disputes with the arena in glendale. joining us is xavier gutierrez, president and c.e.o. of the arizona coyotes. obviously, we have a arizona native in our toronto maple leafs up here in canada. hands off, xavier, we like him. we'll try to keep him. obviously, in your business, though, is always about change. the arena is the one getting a lot of attention. talk to us a little bit more about this move to the arizona

state university facility. it is temporary. it is definitely a smaller arena than what most nhl plans are familiar with. xavier: absolutely, jon. it's great to take to you. good luck to the maple leafs here in the playoffs. yeah, absolutely, we're excited about this move. it allows us to be in tempe, which is really the main of main of the state. it's where you're seeing a lot of corporate relocation. a lot of innovation and growth economy companies being started. arizona state clearly has made it a point to really drive innovation. and they're building this brand new multipurpose arena. it is smaller but we are very, very excited because we, first, it's a temporary solution and, second, it's a place that's going to be intimate. it's going to be loud. it's going to be a great experience for our fans, our partners, for the entire community. so while it may be unique, it is temporary and allows us to go in

the community where we want to be for a permanent basis. kriti: we know there have been challenges across it. how are you addressing those challenges, from filling seats to the actual construction? xavier will be the construction -- xavier: there is construction. we'd like to really leave a mark. and build an iconic urban redevelopment project. we'd like to still be in this market which is driving. fifth largest city in america. we wanted to go and be on campus and really align ourselves with the 80,000 students that are at a.s.u. and almost half a million alumni in maricopa county that are a.s.u. alumni. we see this as a great steppingstone. it's, again, a great opportunity to create this intimate, loud, vibrant experience, unlike any other in the nhl. kriti: well, xavier gutierrez, thank you so much for coming to visit us here on set. we'll keep you updated.

president and chief executive officer of the arizona coyotes. you'll see quite a bit of red on screen. you'll see heavy volume. people cashing out especially when it comes to the volatility, from the war on ukraine, and also with the fed. the s&p 500 crossing over 2% decline. the nasdaq as well. the dow also 2%. once again, a very broad selloff led a little bit of the dollar strength you're seeing, jon. jon: well, there's the flavor of earnings season. i know we had that conversation earlier about the outperformance of kimberly-clark. but we had our fair share of lagers today from the game to verizon. at the end of the day, if you're not seeing a lot of momentum from those corporate stories, which by the way many of them are now influenced by the same factors that are leading to a very aggressive rate plan for -- not just the u.s., i should note. we take a look at the t.s.x.

down close to 1.8%, kriti, we saw technology stocks in canada under pressure. the next bank of canada meeting, the central bank here will move 75 basis points which will be the most aggressive action since the 1990's. you have central banks worldwide that are grappling with this higher inflation right now. kriti: you knows what's interesting is what will come up in the week ahead. very heavy from microsoft to apple. this week we had netflix. is it the beacon of the consumer? maybe that beacon, that macroeconomic signal we'll get from the big tech names. he's jon erlichman. i'm kriti gupta. this is bloomberg. ♪

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mark: now keeping you up to date with news around the world. here's the first word. i'm mark crumpton. u.s. treasury secretary janet

yellen said the u.s. is open to scaling back the trump-era tariffs on merchandise, imports from china to help provide americans relief from the fastest inflation in four decades. secretary yellen: we're re-examining carefully our trade strategy with respect to china and, you know, i think it's worth considering. we certainly want to do what we can to address inflation. and there would be some desirable effects. it's something we're looking at. mark: today, officials representing the united states, germany, japan, and other nations walked out of a world bank gathering in protest when russia's envoy started speaking. the representatives were attending a meeting of the institution's development committee. that's according to bloomberg sources. the walkout follows a similar move at a g-20 meeting earlier this week. starting next month, hong kong will show arrivals of all nonresidents fro