ukraine. antony blinken spoke with reporters today after he and defense secretary lloyd austin made the highest level visit by american officials to kyiv since russian invaded more than two months ago. >> in terms of russia's war aims, russia has already failed and ukraine has already succeeded. the principal aim that president putin in his own words, was to fully subsume ukraine back into russia and take away its opportunity to defend itself. that has not happened and clearly will not happen. mark: the u.s. authorized an ammunition sail and stepped up diplomatic presence in the coming days. chinese officials have expanded coronavirus testing and most of beijing as rising fuel -- rising cases fuel fears about unprecedented lockdown of the capital. policymakers rushing to avoid a

crisis that has wreaked havoc on the financial hub. 20 million people are being shut down. former president donald trump is in contempt of court for failing to respond to subpoenas for his records in new york state's probe into accent valuations of his real estate company. a judge ordered a fine of $10,000 a day. a lawyer for the states attorney general told the court that new york is likely to bring an enforcement action against mr. trump's company "in the near future." mr. trump's attorney says her client is "an honest person." losing a job over prayers, joseph kennedy was let go from a public high school outside seattle after taking a need to pray alongside his players after games. the conservative majority can relax the separation of church

and state. noble news 24 hours a day on air and on bloomberg dictate powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. john: i'm jon erlichman welcome to bloomberg markets. >> here are the stories we are following from around the world. stocks and commodities have investors worried about potential lockdown in beijing, and in global trade. global trade taking it on the chin, falling 5% more than $97 a barrel. and elon musk's social media world, we might just be living in it. on the cusp of securing a $43 billion deal to buy twitter.

jon: let's do a quick check on the major averages. it has been a negative session in north america. the tsx and s&p in the red at this hour. he has seen significant selloff in oil prices based on the china headlines. -- we have seen significant selloff in oil prices based on the china headlines. it might be the worst day for energy equities in 2022. we are watching the technology heavyweights over the next few days as they start to report orderly results. you made the reference to the story of twitter where we want to start with the for what it's worth segment. the bloomberg team tells us that we could get a decision on whether elon musk emerges victorious in his bid to take over this company possibly later today. it does seem like one of the key factors to change the game,

putting it back over to twitter's board of directors to come up with perhaps a better offer and if not, come to some kind of agreement. kriti: one of the big questions is what are the values of the share price? we are one dollar away from the buyout price that elon musk really wanted. let's bring in a securities managing director. thank you for joining us. i am very curious about what has changed over the weekend to have twitter consider this offer? >> thanks for having me. i think it is really just the financing that's the biggest factor that changed over the last couple of days. with elon musk getting together some debt and equity. his tesla results last week were positive which gave him a little

bit more firepower in terms of his equity offering. and there is a pretty good offer on the table for twitter. the other thing likely playing a factor is the macro right now. we saw snap reporting last week. the outlook was not favorable. there were concerns. we will get more from the digital advertising world this week. my guess is twitter stealing some of those factors as well. how is twitter doing right now is a public company? what is the appropriate valuation? it is likely more than $54.20. jon: when you talk about the digital advertising market right now as this deal comes together, what current business model will we be talking about with twitter in the months ahead?

the idea of having a subscription service. how do you think elon musk is ready to test the business of twitter? >> my guess is he is willing to test it quite materially which is why he's doing this by taking twitter off the public market. he could've done it the way he initially did it. keeping twitter public. a lot of what he wants to try to do, he targeted the advertising model, moving to subscription model. it will be a fair amount of turnaround and turmoil, that business model as he tries to put these pieces in place and try to move away from that model, that subscription model while the company is public. they generate all of their revenue from advertising right now. a lot is at stake.

i'm not sure he's willing to test a good amount there. it's one of those things that are done in a private setting than a public one. kriti: we want to bring in ed ludlow who joins us from san francisco. i'm curious about your perspective here because i think one of my favorite things you said last week is that elon musk is the richest men in the world but he is cash poor. financing from the likes of bank of america, morgan stanley, aufg. how will that look? ed: $25.5 billion in committed financing according to sources is what gave twitter's board confidence this is a real deal. we also know elon musk is still out there vetting potential co-investors for the equity portion. he is receiving calls from people interested. he only has $3 billion of cash.

there are questions like who does he do a deal with? he bring in somebody that is a kind of activist investor to make changes on the platform? or at this stage is he looking at the remainder of the cash needed? jon: let's ask that question. some people thought maybe there might be some professional investor group that would want to compete against mosque and take a run -- musk and take a run at twitter. it doesn't seem to have materialized. which investing partners make sense for elon musk? >> it does not look like it materialized, but anything could happen at the 11th hour. investment partners would be private equity, which is the most likely scenario here. the types of investors that are used to taking companies private

. it turning them around while they are outside of public view. and taking them public again. that is the kind of message that would fit perfectly here where musk had some kind of strategic vision about what would happen with twitter. you put that together and hopefully they get the best outcome. kriti: ygal and ed ludlow joining us, thank you for your time and insights. twitter shares up 5% on a fairly risk-off day. the s&p 500 down by .9%. coming up, kkr has a big announcement. and a take on the twitter deal. we speak with taylor, cohead of private equity, next. this is bloomberg. ♪

kriti: this is bloomberg markets. we were just talking about twitter gaining today after reports that is in the final stretch of negotiations for a $43 billion sale to elon musk. let's bring in shelley. this could rank as one of the biggest ever celebrity buyouts of a listed company. >> let's take a look at how big this deal is. another deal announced this year by blackstone, this is a $71

billion deal. but you have to go back to txu before the financial crisis with a more than $40 billion deal. there is a chance that with a bigger equity portion of this check that twitter could succeed txu. it would be the second-biggest deal of all time if you count atlantia. a lot of these deals happened before 2008. that was late stage behavior. the texture of private equity since then has changed. another big factor is you have major billionaires able to put in more money outside the deal. we want to talk about this more with nate taylor, head of private equity in an exclusive interview because his business raised a record fund at kkr. thank you for joining us. if you take a look at the deals that are happening in this era, 40 billion dollars, $70 billion,

is this the year that we will see the lbl return in a big way? nate: thank you for having me on. really excited to be here on a day where we announce the close of our $19 billion flagship fund. this fund is 46 years in the making. this is the 13th for jean of our flagship -- version of our flagship fund. for 46 years, we have been packing market-leading companies and taking advantage of our expertise and value creation, really delivering outside returns for our clients. as it relates to your question on size, we believe we have the ability with a fund like this to go play in different sizes. a lot of what we have done and build success in is the $1 billion to $5 billion of enterprise value does not mean we can't scale up but that is

where we have seen value in the past. shelly: we see so much volatility in equity markets here. there is a perception that when private equity takes over companies, they cut a lot of costs and turn companies around to sell at a better price. a company like twitter will need a lot of investment in private markets. how do you invest once these companies start to go public which we might see at a greater rate? nate: we are big believers in the power of value creation. asset selection is how you generate returns. but the biggest part is trade value after buying. we owned a business in our last fund called mouthful. one of the leading makers of vitamins in the country. that was a business where we did not take cost out, we added cost in to help develop new products and help advertise better and help build a channel on amazon.

we took earnings down before taking them back up meaningfully. i think what private equity can do is invest, and help build a business. and when we do that right, we will create value for our clients. and we will create value for all of those involved with investments. it's a neat example of where we brought down our ownership program. there are 4000 plus employees that are owners of that company. and when we sold the business successfully to nestle for more than three times our money, every employee at the company was a beneficiary. that is something we are doing across all investments we make here in our kkr america's platform. jon: you are looking at a lot of u.s. opportunities. i'm joining you from toronto and this is a north american focused fund. can you give us a sense of how

geography shapes your opinion on where to invest? nate: great question. we are a global firm and i look after an americas platform. we see opportunity in the u.s., canada, and other parts of the americas. if you back and think about kkr globally, we have funds across the globe that can invest in opportunities and we share those insights. one of the things that is really unique about kkr is the global and collaborative nature. i spent time in asia, we have colleagues around the world, and we collaborate on ideas. mouthful as an example, they had a china business that they were building. we could not build that business as successfully without our colleagues and china collaborating with us. shelly: you brought up china, and one of the reasons the markets are taking is because of issues in china. covid lockdown, hesitation to

invest there. what is your take? nate: i do think it is a relevant factor. and we think about particular disruption and supply chains, we are seeing some spheres of supply chains emerge. and in particular, effort to bring some supply chain back to america's market. this year, we invested in a contract manufacturer in the health and beauty space called kdc. art of that thesis was premised on the idea that ringing manufacturing capacity and supply chain capacity back to domestic markets is exactly what we need today. jon: nate, good to get your perspective. thanks for sharing with us. nate taylor, kkr posco head of americas -- kkr's head of americas private equity.

ahead, lockdowns in china and more on that conversation next. stay with us. this is bloomberg. ♪

jon: this is bloomberg markets. i'm jon erlichman along with kriti gupta. oils sinking to their weakest level in two weeks over concerns of spreading covid outbreak in china could weigh on demand. thus get more perspective from julia who covers the bloomberg -- the oil market for bloomberg. in percentage terms, it could turn out to be the worst day so far this year. with early covid concerns we saw in china and shanghai, it's almost as if we are using that as a template now that everybody is starting to focus on what is happening in beijing. it julia: that is exactly what i'm hearing. demand has gone down around 1.4

million barrels a day because of the shanghai lockdown. if beijing goes into lockdown, we have seen certain districts go into lockdown and that could really mean bad things for crews and amending outlook in the future. everyone was fight -- pricing in tight supply, driving season. china could not control that demand outlook. it is the world's biggest importer of crude and i think it imported over 13 million barrels a day in 2021. kriti: you mentioned the tight supplies in particular which is pretty stagnating. and you have this kind of offputting demand coming from china. to those cancel out? does this mean the idea that there isn't enough? can we throw that idea out the window? julia: that's what i was asking traders today.

we are still around $90 a barrel, $96 for wti, $100 for brent. it is not exactly the $120 that people were pricing in. there are still tight supplies that doesn't necessarily cancel out the other. but it is lessening the demand outlook. jon: we should probably highlight one of those factors that was leading prices higher. what happens to russian energy if europe is shying away? there is still plenty of evidence out there of asian nations tapping into the russian supply. julia: exactly. it doesn't seem that the russian barrels -- it seems that they are still getting to the market. that is why prices have come down a little bit. people have really priced in no russian barrels. that price is getting reeled back just a little bit now. but if europe does decide to do

an embargo or stop importing russian energy exports, then that will shoot prices right back up again. kriti: julia, we thank you for your time as always. always on top of the market. as we were speaking to her, we have a 101 handle and wti less than that. this is the worst day for the s&p 500 energy sector since june of 2020. on these risk-off days like today, in theory you would see energy as the only sector higher. the new defensive play, the new inflation hedge. today, certainly not the case. jon: it had a huge run and we have seen that in the canadian markets this year. energy stocks kept climbing. and we've talked about the supply picture tied to russia. we have some recombination of demand concerns and perhaps an overreaction on some of the supply stories.

before we get ahead of ourselves here, there are many people expecting oil prices to stay elevated for a period of time. when bank of america is strategizing on what markets to watch for, they are looking at canada which is commodity focused. it has been a winner for most of the year. kriti: there is the possibility of europe ending imports from russia altogether. jp morgan, $185 oil if that does happen. we are 30 minutes away from the commodities close and we will keep you updated on all of that price action. from jon erlichman in toronto, i'm kriti gupta in new york. this is bloomberg. ♪

>> keeping you up-to-date with news from around the world. here is the first swearing. i am mark crumpton.

asking to secure safe passage for civilians, fleeing ukraine, after failing to agree with russia today. ukrainians asking the u.n. and international red cross to be on hand when the convoys come through. efforts to create safe passage for civilians to leave the besieged city of mariupol have failed repeatedly with each side blaming the other. why has denied targeting civilians. russian president vladimir putin is calling on officials to help business, amid the pressure. speaking of moscow, he said the nation must give russian entrepreneurs as much support as possible. he called for prosecutors to investigate crimes he alleges have been committed by nationalists in ukraine. president biden says he feels good about the french election

and that he will spe