in a speech marking the 77th anniversary of defeating nazi germany, president putin that the russian military is defending "what our fathers, gran follows and great-grandfathers fought for." -- grandfathers and great-grandfathers fought for." u.s. sanctions targeting russians military-industrial complex and causing the russian economy to retract. >> the reality is when you think about what russia is doing in ukraine, it is a key contributor to some of what we are seeing in both energy and food. russian ships blocking the ability of food to get out of ukraine. you have seen energy prices rise

because of the geopolitical's uncertainty. mark: the united states added to sanctions on russia by banning accounting firms working there, as leaders pledged halt oil imports from the country. sweden's ruling party will announce whether it wants to join nato. neighboring finland is considering joining nato following russia's invasion of ukraine. if they are threatened in between and an eventual entry. demand for electricity in texas is expected to surge. a spring heat wave drives up temperatures and millions of people crank up air conditioners, the main -- grid generator it said it has enough supply to meet our use. temperatures will likely stay

hot brought the central u.s. were days, with the highest heat centered on west texas. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> welcome to "bloomberg markets." >> a risk off the session when you look. a lot of read on the screen. no buyers emerging and huge when you look at where the bid is. it is not in jon the stock market but in the bond market. a stronger dollar continues and

weighing on the market. crude down 5%. jon: on the weakness from the nasdaq, now down 25% on the year. looking at some of the hard-hit names, whether tesla, bloomberg -- uber, earning coming in from the likes of palantir, that stuck losing 1/5 of its value. kriti: the volatility carried over to this week. >> in my lifetime, we just had a crust equities and treasuries the biggest swing on a to date basis ever. we have an extreme amount of uncertainty. jon: let's bring in gina martin

adams, chief strategist for bloomberg and the head of mid-caps strategy. thank you both for being with us. i will start with you and the general assessment of the general selling we are seeing. >> thanks for having me. this is going to be a year marked by volatility. usually you see volatility pick up when you have leadership and regina shifts and we have gone from a period of zero interest rate with fed tightening, we have gone from globalization to deglobalization. the yield curve inverting, tending to be a reliable signal of what the vix does over the next several years. we expect rockets to remain volatile.

-- we expect markets to remain volatile. our target is 4500, but certainly it is a probability of recession and should that continue than certainly there could be more downside risk here but at this point are base is for continued growth. kriti: you have done a lot of quantitative work, but are stocks trading on the margins right now ya gina: -- right now? >> one thing that popped up that investors weren't expecting is the earnings weakness in the tech space. the greater weakness in margins than analysts had anticipated was the big surprise, in addition to the commitment on the part of the fed, and

persistent inflation. we have had weakness in the earnings stream pop up from the tech companies. this is a group that has an enormous amount of the market share of the s&p 500, vastly over owned on the part of the investor base. the set up profound downside affect on the stocks and the market at large. they tend to be the bellringers of the market. when you get downdrafts and expectations from the amazons and apples of the world, it did deplete confidence quite a bit. we are seeing operating margins come in as expected but not margins weaker than expected. income margins falling for the first time in the cycle. i do think that chipped away at an area of confidence in the stock market that the stock market was expecting a shift in policy and expecting rates to

rise, but we weren't expecting a downdraft, in particular from tech. that is what we are getting. jon: jill, let me bring you back into the question as we begin the six week of selling and if we were to see the year end target that you talked about, which obviously would suggest a year-end move in stocks above where we are now, talk about some of the bright spots in greater fashion. we are pretty familiar at this point with the negative headlines driving stocks lower. jill: avenue gina mentioned, we have seen the downside in the nasdaq earnings revisions trending down where, we have seen revisions for some of the good exposed parts of the market, autos, housing,

revisions more negative there, versus we are seeing good momentum and upward revisions to the service exposed areas. small caps are one area that has been a relative bright spot in the fundamental picture and small caps are more similar to the makeup of the u.s. economy. may have seen in figure earnings beat and much better guidance and incorporate guidance we have seen weakening progress. that is one area where i think a lot of the risks have been increasingly more so reflected in valuations. small caps are cheap versus large caps. other areas are high-quality stocks that tend to outperform in volatile markets.

we see opportunity in large cap health care, the acronyms we published for of care and yields were at a reasonable price. defense at a reasonable price and growth at a reasonable price. large cap health care is a good sector to be in this market right now. jon: some terminology to keep in your back pocket. thank you. jill carey hall of bank of america securities and gina martin hall of bloomberg monitoring what is happening in the markets. working news involving two major telecom -- breaking news involving two major telecom companies in canada, where we have seen the bureau speaking for a full block of the rogers shaw transaction. these two mega companies are looking to come together in a large deal, but concern from the competition bureau in canada has a lot to do with what would mean for pricing on people and

telecom services, there was anticipation. we will see more details and we are already seeing this in both rogers and shaw's prices in the selloff we have been seeing. coming up, we will get more perspective from an associate professor olga onuch ,, from the university of manchester on what could happen on the russian invasion on ukraine. that is next. this is bloomberg. ♪

katie: this is "bloomberg markets." vladimir putin used an annual display of military might to justify his invasion of ukraine and drew comparisons to world war ii. let's bring in our washington correspondent. this is quite the image on what is supposed to be victory day in russian street. walk us through what the washington response is to a war that has been going on for three months now. >> there was a lot of concern leading up to this moment, this holiday, if we can call it, a lot of concerns about what vladimir putin would do. there were concerns he could formally declare war against ukraine and that would allow him

to call up troops to help get more manpower into ukraine, but that never happened. president vladimir putin did speak about the war effort. he's had -- he had all the pomp and circumstance but he spent time justifying russia's action in invading ukraine, saying it was the de-not the vacation -- de-natification. president zelenskyy was also speaking yesterday and evoked the second world war and pledged to drive russian troops out of ukrainian cities that were once occupied by the nazis. the quote from zelenskyy, "this is a war of two worldviews that

is a world view that includes allies like the united states -- this is a war of two worldviews." that is a worldview that includes allies like the united states. it is said that one out of 13 workers -- a little belief in a war zone. jon: going back to the styles, put in and zelenskyy, obviously -- putin and zelenskyy, and in the case of ukraine, going back to what has been highly effective throughout all of this, on the streets, very casual and and passionate with a very effective message. joe: the first lady of ukraine met with dr. joe biden.

they sat down on mother's day with the first lady which is important. we have not seen her in public since the beginning of the war. jon: thank you very much. we want to get back to news just breaking. cannas -- canada's competition bureau is seeking to block rogers' takeover of shaw. we are getting key details from the competition bureau. many were anticipating this news but we need to know why at the competition bureau is taking the stance. >> what they are saying is shaw is a competitor in places like vancouver to the big three canadian telecom companies has helped to drive down prices and they believe if the merger goes

through the process will stop and consumers will pay more. it appears to be more or less as straightforward as that. they are complaining about other aspects at this point that rogers is also trying to acquire. this is about the wireless business. katie: does the deal get done from here? derek: it is hard to say. as the market shows you, there is more risk today than there was last week. that being said, there are possible paths they can do to get the deal done. the competition bureau has filed a suit, but they have not won yet. they have to fight it out from the tribunal which is like canada's version of a merger court. there is possibility they could settle it out-of-court by rogers finding a way to divest these particular shaw assets in a way that makes the anti-test body

satisfied -- antitrust body satisfied. it could get done but appears more in jeopardy than it ever has. jon: i will remind our global audience that rogers is just coming off quite a massive change at the top, a new coo, changes in the board room and quite the drama last year. derek: the family fought for control last year. there is a new ceo who came in several months ago. new executives, and they have dealt with internal turmoil and now they have this disruption of not being sure they can get done this deal they have been talking about and working on for a year and a half. jon: thanks very much for your perspective on that. we were just looking at the

weakness in the stock prices. obviously this has raised questions about whether this deal gets done. we noticeably saw shaw shares down on the uncertainty. katie: president biden currently in the rose garden making remarks about high-speed internet. you can watch it on the bloomberg terminal. more coming up next. this is bloomberg. ♪

jon: this is "bloomberg markets." for what it is worth, $155 is the big number this hour. we have been talking about the price of oil under pressure but holding above $100 a barrel.

for anyone filling up at the pump, this price more similar to what it feels like in terms of your overall gas bill. there was a great piece on the terminal surrounding this issue. a lot has to do with the refining realities right now. they are so busy and don't have enough capacity and that means what you pay at the pump feels higher than what they have been in wti. kriti: this is crucial because we are talking aware -- talking about where u.s. and the others can find more to make up the russian demand. but when you get it, can the refiners catch up and handle the additional supply? and that is important when we talk about what the average american feels at the pump. we caught up with the atlanta fed president and asked him about that. >> when i think about our

policy, the first thing on my mind is that the placement is too high. we need to act definitively to try to get that under control. if you look at what we have done so far is started that process. for me, 50 basis points over the last 20 years you know is already an aggressive move. i don't think we need to move more aggressively. i think we can stay at this pace and cadence and see how the markets evolve. my expectation and hope is that as we move closer to our neutral levels and away from our accommodative stance, that we will see a lot of the tightness and tension in the economy start to moderate, which can then make -- give us options for what we do after that point. >> where do you think you will be by the end of the year or the end of 2023? >> that is a good question.

we need to get somewhere into the neutral range. different people have different ideas about what that happened. for me, i am looking at somewhere between 2% and 2.5%. kriti: speaking of that inflation, president biden is going to be speaking on inflation, addressing the concerns of voters. it is interesting that you have the biden administration actively trying to reduce price pressures, whether releasing from the fpr or adding more subsidies or ramping up climate transition as much as possible, funding the ev space. at the end of the day, how much more can the white house do? jon: we are going to be hearing about that. i would imagine the transportation secretary will comment on this peerage she will be watching the data points. we talked about -- on this.

she will be watching the data points. we talked about consumers being frustrated. we look at the selloff in the markets, oil prices, while they have been higher, they are struggling today because of this global equities weakness have been talking about. kriti: and risk off move across the board and the only thing that is doing well is treasury and a little dollar strength. as we head out to the close, we are seeing the stock market on session lows. can the buyers show up. this is bloomberg. ♪

>> cranium -- ukrainian officials spoke the coming weeks will be critical for ukraine. >> you heard my present -- president when he said we need tomy president is ready for thee negotiations. we do not want president bushman to be part of these negotiations -- president putin to be part of these negotiations. mark: queen elizabeth ii will miss the opening of parliament because of ongoing mobility problems. she will miss the queen's speech in which she sets out the agenda for the upcoming parliamentary session. buckingham palace of the decision was made in consultation with doctors and that prince charles will read the speech on her behalf. president biden will give a