at least 29 people were injured. the interior ministry has been investigating alleged russian war crimes. a final stage trial showed moderna's vaccine against rsv was highly effective in preventing the lung disease in older people. paving the way for the company to seek its first approval outside covid-19. the company ceo said moderna may apply for approval using a recently acquired voucher. they can expedite the vaccine this year. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm john hyland. this is bloomberg. ♪ >> welcome to bloomberg markets.

>> let's dive right into the price action. the losses are accelerating, early snowballing. we started off the morning with green on the screen. the stock market, taking a complete turn. the s&p, down 1.1% on the day. and it's not alone. the move is historic. down 16 basis points for the 10 year. 338. you are seeing the dollar move in the opposite direction, fueled by what's going on in europe, the cable rate, pushing that move. keep an eye on the commodity space, right now not doing a whole lot to write home about. how long before we start talking about $100 will again? >> it is hard not to ask those questions. a lot of questions during earnings season as well. looking at the profit picture and market reaction, let's go through some of these stories. you've got a predictable decline for shares of schwab. you have pnc financial also

under pressure after that bottom line performance missed expectations. down about 5%. the banks have been rallying recently. was interesting about united airlines is they are providing a relatively upbeat outlook. that stock is down again. could play into the fact that he will start to see those shares rallying recently. you've got this anomaly within this group of jb which had disappointing numbers but the stock is rallying 4.5%. some would argue it's because the numbers were not worse than expected. you saw that as a vote of confidence between the shocking sector. -- the trucking sector. >> we are getting some breaking news, blackstone raising a record $22.2 billion for its secondaries fund. all above that $13.5 billion target. that is enormous when it comes to how much movement we are getting out of blackstone. fundraising like this is not

that easy. nevertheless, some good news for blackstone, really speaking to how much they are really putting some of their investments to play. its co, steve schwarzman, speaking to bloomberg earlier in doubles. he discussed how the pandemic shut down the health of the american consumer. >> the 90% who kept being employed would end up having way more money after the pandemic, because their cost structure collapsed. they didn't go to movies, they didn't leave their homes, they didn't travel. they didn't buy expensive clothes. that $2.5 trillion of extra money was in the banking system. they have been spending that money. and that's been keeping the economy performing better than people expected. >> of course we are talking

about the strength of the consumer. for that to continue, you have to make sure there are jobs that play -- at play. 5% of microsoft's workforce is going to get laid off. talk to us about the ramifications of a behemoth like microsoft. >> it is 28 thousand jobs between microsoft and amazon. i think the microsoft number was a little higher. we were told we would see a number of engineering teams cut. but 10,000 is 5% of overall workforce. on the amazon site, 18,000 jobs -- side, 18,000 jobs. it focus on the devices division. but with communication that bloomberg has seen in an internal memo, they are moving on to human resources and the retail side of the business. it is 1% of global workforce. throughout the pandemic, amazon really ramped up on its contract

workers. seasonal and contract workers, to feels that short-term demand mr. schwartzman was just talking about. if you talk about the corporate jobs, it is 6%. a part of it is unraveling, exactly what we just heard. the blow to the pandemic era. i would also say the outlook for many of those companies from an earnings recession perspective is still relatively bleak at least in the first half of this year. >> as we get ready for a lot of these companies to report their quarterly results, do you anticipate messaging that prioritizes different areas, projects getting less attention in this kind of environment? >> we go straight to eps in the bottom line. the second and third quarter of 2022, we have seem to have hit a trough. if you look at the fourth quarter eps estimates, calendar fourth-quarter, what is interesting is, in microsoft's case, they said these actions related to the severance payouts but also the unraveling of some

real estate leases will give them a one time charge in the fiscal second quarter of $1.2 billion, which translates to a $.12 hit eps. there is a near term action you are taking and then the commentary on whether that kind of financial discipline and prudence protects margin. often, investors share this kind of action because it does protect margin. there is also bearish voices that say even microsoft with its fantastic balance sheet and ever relevant portfolio of products is not recession proof necessarily. we don't yet know how deep the economic downturn will be globally but there are certainly ways now that companies are moving to protect themselves. >> ed, thanks very much as always. that certainly plays into the economic data we got today. let's bring in our own policy correspondent, mike mckee.

tracking the latest data. it is interesting to see the market initially today enthused by indications that perhaps inflation is easing. it seems like the storyline is focused on growth. based on the data we are seeing right now. >> we are going to go back and forth. that dichotomy is going to last quite a while. basically the fed's interest rate increases are starting to have an impact. we saw the retail sales numbers coming in more disappointing than anticipated, with retail sales overall down 1.1% and the control group which is what goes into gdp down .7%. ppi, coming in lower than anticipated, falling on a year-over-year basis still. that suggests the fed is beginning to have an impact on inflation. the question then becomes, does the strength of the economy last long? is it strong enough that the fed doesn't go too far?

we have had some disappointing indications that may be -- maybe people are reaching the end of that ability to spend that steve schwarzman was talking about. credit card use is significantly rising and the size of bank accounts across the country is starting to fall. maybe people are starting to get a little stretched. >> that is the focus when it comes to the federal reserve. but we also got news overnight from another major central bank. the bank of japan. overnight we are going to get some cpi data or inflation data coming out of japan. why should we care about the boj right now? >> the bank of japan was trying to keep their 10 interest rate below the 4.5% -- before the -- below the half a percent level. they thought inflation was going to push it higher in the bank

would have to respond by raising rates. the bank says no, we are not going to do that. if they had, that might've sucked money out of the u.s. and europe. repatriated to japan by investors who thought they could make more money for a change in their home country. >> mike mckee, think he was always for sharing your insight into the economic data. breaking news coming from genesis -- set to plan a bankruptcy filing. this is the crypto lending unit of cryptocurrency group led by the winklevoss twins. i want to get more context on the story and how we got here. sonali, walk us through how we got to this point. >> we are getting to the point here, genesis global capital, it is a lending unit of not only digital currency group but that big trading business that is known as genesis, part of the

crypto industry. this global capital unit had suspended withdrawals back in november. this is the counterpart business that also halted withdrawals. stood by the sec for the marketing and dissemination of these products. genesis global capital, the plans here may change, the talks are ongoing, they have been talking to creditor groups amid this liquidity crunch. the question has been for a while now, how much the plans here could start to spiral into other parts of this empire, that is digital currency group. to the point that you are making [indiscernible] to conserve cash according to that january 17th letter. an effort to go through bankruptcy proceeding will put

questions forward on the relationship again between dcg and genesis as there were intercompany loans. there are other counterparties to consider. who gets what backend and what order? and does this stave off digital currency group's broader concerns if the process comes to fruition? >> just another reminder of the ripple effects from all these headlines we have been watching unfold these last few weeks and months. the obvious one being the collapse of ftx. >> ftx, this global capital unit, a lot of these issues stemmed into the middle of last year when we saw the hiccups in the crypto industry that started to burst your bubble, the leverage bubble that was accumulating here when it comes to the crypto industry. after the three ac debacle, dcg came in and helped

stave off those concerns. when you got to the point that there was a broader liquidity crunch and industry by the end of the last year, what you had for gemini was another 340 thousand customers here where those withdrawals were halted. what happens now for those customers of genesis at gemini -- the counterpart to that business, where do those 340 customers fall in line? should a bankruptcy proceeding and sue -- ensue. plans could change. they have been in discussions with creditors. throughout the process here. >> helpful context on the many moving parts. thanks very much, sonali basak. genesis global capital, laying the groundwork for a possible bankruptcy filing as soon as this week. when we come back, we've got

more to talk about in these wednesday markets. we will get some perspective on the global trade. with evan brown, head of asset strategy at ubs asset management. this is bloomberg. ♪

>> this is "bloomberg markets." i'm kriti gupta alongside jon erlichman. the s&p 500, near session loads right now. all major groups in the red. the selloff is broad. let's get more perspective, with the head of strategy at ubs

management. we went from all bearish to almost all bullish, where do you stand on that spectrum? >> can i say neither bullish or bearish? [laughter] > you've got to pick one. [laughter] >> it's more international versus u.s.. what we are seeing internationally is that it is a big rebound from china, where you don't want to bet against president xi, was really trying to get the economy going. europe, looking much better with natural gas prices coming down. and earnings expectations pretty low, especially in emerging-market worlds. in the u.s., there's more room for earnings expectations to come down. a little bit more vulnerability, rates saying higher for longer which we still think will be the case.

you could be neutral overall equities but there's plenty to do on a regional basis. >> so, a trend like the msci emerging market index outperforming the s&p 500 so far this year, that's the kind of trend you would anticipate continuing? >> yeah, i think it is going to continue going. you got the valuation story but now you finally have the catalyst. you have a lot more of a balanced global growth picture. for a long time, it was just the u.s., just like. now you have china accelerating --. just tech. now you have china accelerating. the dollar falling because of that more rebalance to growth outlook. and a lot of money having been placed into u.s. equities for so long, such that now with the tides turning and a more balanced not just global growth picture but value versus growth stock picture as well, then that favors a move toward em and international broadly. >> i feel like the thesis rests

on the future of the dollar, when you seen this turnarounds in the u.s. equity market, it's been coming down. a lot of this simply because russia's been weakening, simply because of those terminal rate expectations stalling out. is that a trend that's going to continue? >> i don't think so. in our view, this bond rally as well overdone because we have a more positive view on the global economy generally. that includes the u.s. a a lot of bond yields coming down has been good news on the inflation side. we just coming off somewhat. inflation coming off somewhat. so market repricing the terminal rate. to get a material move down in yields from here, you are going to have to really start to see growth deteriorating, economic growth. we just don't see that. incomes are growing, real

incomes are improving because gasoline prices have come down. and with a broader global growth picture improving, that is another tailwind. the rate move is probably overdone. >> good to have you back, evan. we will be watching closely. evan brown of ubs asset management joining us with his take on the equity outlook for the year ahead. we will take a break. when we come back, we will hear from the ceo of moderna about the pandemic risks posed by china as well as how prepared we are for a future virus outbreak, speaking at the world economic forum in davos. we will go there next. this is bloomberg. ♪

>> i'm jon erlichman with kriti gupta. time today for what it's worth. our data point is 5.5 percent, that's how much goldman sachs

thanks china's economy could grow this year as the economy reopens. covid cases are a wildcard. vaccine maker moderna is watching closely. the ceo of moderna spoke with bloomberg in doubles and shared his view. >> it is how fast we track it. we are not seeing a lot coming out of china. our team believes the risk is not high. that there is a severe mutant coming out of china. it is possible, because it is such a large number of people. but we don't think the risk is high. because there is resistance to the virus infecting people. you either got an upgraded vaccine a long time ago, many don't get infected naturally. when the virus infects somebody, they don't have the resistance that they have in the west, so we think there's little reason for a virus -- for the virus to evolve, in terms of concerns. >> if there is some sort of

mutation or another potential pathogen that could create another pandemic, is there any lesson that's been drawn, in terms of creating a more efficient process? recognize it was pretty efficient, for vaccine standards, for rolling out something, getting it into the public, and preventing 2020 from happening again. >> sure, we've been working a lot on that since the pandemic, what could we do different the next time? i hope the next time does not happen, for the world and for us. >> do you think it will happen? >> i think it's possible. if you look at the change of climate, there are a lot of people in the claimant, how we travel, if you talk to experts, they say we are going to get another one. it is impossible to know if it is in three or 25 or 100 years, but we will most definitely get another one. there's a few things -- first, building a global manufacturing network. one of the reasons it took so long to get the vaccine out before they were approved is whenever saw the product before. -- we never thought about it

before. today we have $2 billion of annual capacity today. and we are building a plant as we speak in canada, one and the u.k., one in australia, one in kenya. we have more capacity. that's for any given time to do clinical studies. we can make a choice, many of those as for the vaccine. in six months, we could develop a vaccine, which i think we can do next time. we could make one billion doses. when the vaccine was approved, we shipped only 20 million doses. that is what we had. >> that was the motor and at the world economic forum in davos. looking at these markets, read on the screen across the board. a fairly broad selloff that started the day off with a broad rally. the s&p 500, down about 1% on the day. the nasdaq, not far behind. down .7%. you are seeing a little bit about performance on the nasdaq but nothing to write home about.

the real action is in the bond market. the 10 year yield, a move of 17 basis points. some of it is the economic data, some as a hangover from the boj overnight. more japanese inflation data to come. let's see what the rate is tomorrow. stick with us. more markets ahead. this is bloomberg. ♪

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>> the economic data rolls in and the market rolls back. 3949 on the s&p 500. romaine bostick alongside scarlet fu, kicking you off the close on this afternoon. scarlet: we saw a reversal of early gains and it feels like the feds prescription of higher interest rates is slowing down the economy and today, that is a bad look for the markets.