>> welcome, the one-year mark of the russian invasion of this country, ukrainian president says his people will secure victory if allies maintain their suit word. he says winning the war will bring with it a new international order. >> let me be frank -- [indiscernible] overall on the continent and the international organizations so how should we handle the different secured infrastructures?

this is what's coming with victor in this war. >> he says ukraine will have victory because truth is on their side. the u.s. and g7 nations are marking the beginning of the russia ukraine war by initializing new sanctions. there will be more pressure on third countries to choose between the u.s. and russia. toxic waste water use to put up the trained realm and east palestine, ohio has been taken to a houston suburb for disposal. the wastewater went to deer park to a company called texas molecular which injects hazardous waste into the ground for disposal. u.s. first lady dr. jill biden has given one of the clearest indication that president joe biden will run for a second term. she told the associated press there is nothing left to do but figure out a time and place for the announcement. buying has long said he plans to seek reelection, he has yet to make it official. global news, 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700

journalists and analysts in more than 120 countries. this is bloomberg. ♪ jon: welcome to bloomberg markets. romaine: let's get a check on where we stand. we got the latest read on pce that came in hot in the market is cooling off a little with the s&p 500 down a little bit on that day. now retesting the 200 day moving average. similar story for the nasdaq which is breaking below the average right now and you are seeing that selloff in the treasury market intensive by area the two year yield on the short end of the curve, we are almost near 4.8 on the day.

this is a global selloff and you see it in german treasuries. the german two year yield is at 3% and we have not seen that in a couple of decades. a huge turnaround from where we were a few weeks ago. we were talking about negative rates around the world. jon: helpful context and the rate sensitive stocks have been some of the laggards in the equity market with groups like consumer discretionary and real estate and technology are getting hit hard. and we continue to see the market reaction to earnings and outlooks. it's a challenging time in macro risk but investors feeling relatively optimistic. beyond meat had lower expectations and there are concerned at autodesk. though shares are down 12%. we are also watching boeing the worst performer within the 30

stock index, off about 5% as the market reacts to deliveries being halted. romaine: we go back to the hot pce data. it was not only spending data that came in height but so was inflation and a lot of concerns about the slower pace of income growth area that's causing a big repricing in the market with some folks betting on the potential for a 6% terminal rate for the federal reserve. earlier, we caught up with mohamed el-erian. >> five pushing six, five and six are very different. let's call it five. is it 5.25%? that remains the baselined of the balance of risk is clearly on the upside. jon: let's get more perspective. the founder of soft consulting is with us. great to see you again.

on your own expectations on where rates go, what are you thinking? >> i think it's too early to say, there is so much data between now and if we got to 6%. we are in the early stage -- staging's of an early cycle. the fed will do what has to do. it will not anchor itself to something like six. we got bad news today and if we get more of that, they will do what it takes. that's not my baseline case but i think the distant letter -- disinflationary case will pick up some speed. we shouldn't overreact to a good month of news like with consumer spending. this was a good month after to declines. we need to keep things in context but we will have to see. there will be a lot between now and the terminal rate. romaine: i want to get your

perspective on something markets have focused on in this one particular report and that is the somewhat modest diversions we see between the growth in personal income versus some of the spending rates. what is that telling you about the state of the consumer now? >> the state of the consumer right now looks pretty good. adjusted for inflation and inflation is too high but adjusted or inflation, we saw an increase in consumer spending. over the last several months, the consumer has held up. it would be such a different moment if we were in stagflation with inflation high and spending slowing. that's not what we have now. we have two high inflation and that's a problem but we really should celebrate the fact that unemployment is very low and people are still out there able to walk away from the store with

more than they went in which is the goal here. jon: maybe you could walk us through as we try to figure out the challenges on the inflation nonspecific. what are the issues in tackling supply driven inflation? >> it would be a mistake for us to look to the federal reserve and expect them to fix disinflation entirely. the fed has a role to play and we have a lot of demand in their interest rates have an effect. they are not set up to be super effective right now. balance sheets are good and in the interest rate sector, we've seen housing take a big hit. construction employment has still held up so it's really hard for the fed to get to interest rate sensitive sectors which are not that large to consumer spending. romaine: what gets us there?

i've heard the argument that the main mechanism the fed has only accounts for certain percentage of inflation. some put it around 40% but less than 50 and the rest will largely come from supply-side changes, fiscal policy changes, etc. how much can we rely on the fed in the context of how much they can get inflation down based on their own pricing mechanism? >> the fed has a role to play but the only work on demand. we know there is still a good bit of supply-side inflation. the labor shortages, it helped that we had a million more immigrants come into the country last your but that's not making up for the years inside the pandemic but it helped. there is fiscal policy that a lot of it is patient's for the supply chains to work themselves out and even in services, you have things like auto insurance,

vehicle maintenance which you can go back to the price of vehicles. there is an aspect of patience and we need these to work themselves out but it's been disappointingly slow. romaine: do you have the confidence that the fed will show that kind of patience? >> yes, they're moving away from 75 basis points to 25 and that shows a more patient fed. that's important. powell recognizes we are in the early stages of the disinflationary cycle. romaine: we have to leave it there but wonderful to get your insults -- your insights. coming up, we will talk about a potential antitrust lawsuit between adobe and the department of justice and we will have reaction coming up after the break. stick with us, this is bloomberg.

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to help advance and connect all that it takes to excel in business ... to the business i'm in. deloitte. romaine: this is bloomberg markets. time now for the sake of -- the stock of the hour with adobe shares down. this revolves around the $20 billion deal to buy design firm figma. the u.s. justice department is preparing a lawsuit to block that acquisition. we are joined by the senior litigation analyst and ed ludlow. this deal was pretty much banned by investors when it was announced last year and the eu has indicated it will challenge this deal and now we are learning that the doj plans to

block the deal as well. ed: sources say it could come as early as next month area adobe is going off because they believe what figma does will be a long-term driver of growth. adobe is the name behind photoshop and premier. this is software that every day people can use. there is concern on the figma side that getting ingested stifles the ability to improve the product. investors want it both ways. remember when the deal was announced, investors were balking at the price tag and now they're worried that the long-term picture for adobe is looking shaky if the antitrust suit goes through but the regulatory environment new this would happen. jon: jennifer, these kinds of

cases depending how things play out can be challenging, but in terms of what the doj might be able to do, do they have a reasonable shot >> >>? i think they do in this case. your right to say these kinds of cases can be challenging in court. they have two issues here and one of them is horizontal competition. this is not just a matter of saying figma could grow in the future to be a competitor. another piece of it is in the small part of adobe's business, it competes with figma today and that's a traditional antitrust theory. if they come together, there are fewer options and it could have a price raising effect and that's an easier case to win. i think they have a shot in court. romaine: when we talk about the

potential case and the idea of what the justice department forces have been targeting, not just with adobe but other companies, is there a case that adobe can win? >> there is, the doj and the ftc want to challenge mergers much more than settle them. they are bringing a lot of lawsuits on a lot of them are based on novel theories to win in court or rejected settlements. the companies have said we will sell a piece. what we are seeing is sometimes the judges are more sympathetic and they are allowing these deals to go through on the basis of remedies. it happened with united health. in this case is possible that adobe could say we will divest the adobe product and it will restore the competition and let us go forward on that basis and

the doj says that's not good enough. they are worried about potential competition. if they go to court with potential competition and a divestiture offer on the table, maybe in that case it would be harder for the doj to win and adobe might have a case. jon: we will be watching closely. we included that adobe comment. thank you so much for your insight. we will see how things play out on the adobe front. coming up, when you're after russia invaded ukraine, we will have a conversation with the former deputy prime minister of latvia which shares a border with russia. we earlier heard from the mayor of the city ofkyev. >> they will never accept ukraine as an independent country. they maintain ukraine was always part of russia.

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start a 30-day home trial today. terms apply. >> today it seems there is nothing ukraine can accept. it's up to ukraine to examine the plan but i've heard there would be no solution on the basis of this plan. jon: this is bloomberg markets. that was the latvian president speaking exclusively with bloomberg about the china cease-fire proposal. the ukrainian president expressed some all if i'd support for china's proposal saying there were points he agreed with and some he did not.

joining us now is the former vice prime minister of latvia. thank you for your time and joining us on this one year anniversary and it's a moment when many are trying to figure out what happens next, particular what russia's thinking would be, what would you say to that? >> i think we must understand what is russia's goal. the goal is to make you guys in the united states and western your feel exhausted, tired and say we cannot support ukraine anymore and we lack resources and it's taking too much money. let's find a compromise. our goal at least in this part of europe and the goal of the west should be simple where i can quote winston churchill, this is victory. romaine: give us a sense of what constitutes victory when we talk

about some of the debate we have seen about supplying additional arms and ammunition and other types of weaponry. some have thought this would drag the war out. >> my response is that this is a false debate. if our goal is to finish this war as soon as possible and not to have too many sacrifices, then we in the west must put our economic and military might behind the ukrainian army and arm them and asked celebrate -- and accelerate support. you can see the debate and the discussion about weapons and tanks and ammunition. it was taking three or four months after the beginning of

the war on still -- until it started to roll in. it was the delays which are not strategically correct. the only way we can end this war is to put the might behind ukrainians, finish the war and force russians to sit down and negotiate. russians are not ready to negotiate at this moment. sorry for being direct but you guys will not get tired and continue this debate. i would say some in the kremlin hope that u.s. policy will change and they will find a way how they can get out of this war and keep everything that they already conquered under their control. jon: i want to specifically get your perspective on germany. you criticized some of their lack of support.

we have seen some tank approvals. do you see that as an encouraging development? >> it is encouraging. some of their analysts in latvia say we will start to count tanks when they are in ukrainian territory. frequently, u.s. allies come from ram stein but time is ticking away. from our perspective, we should try not to have these delays. we must also admit some of their mistakes during the last year. a number of analysts are telling that the west was completely in capable to attack this aggression from the russian side romaine: i'm curious about the non-russian neighbors. are they in relative unison with what you were saying today?

>> fully because this war is showing who is who morally and practically. we are a small country but we already exceeded 1% of our gdp and help. the same happens in estonia and lithuania and poland and also in fresh nato member countries of sweden and finland. we are sharing the closeness with this aggressor country and we know it will not -- if it is not stopped in ukraine, the next war will start against all of us and it will be much more costly. jon: in the remaining time, we've mentioned china's relationship with russia. how do you see the new world order from that perspective going forward? >> i had a chance to speak with

some chinese officials today. i believe it china would extend friendship to moscow, it would be easier to come to negotiations and put the ukrainians dish -- and put the russians out of ukrainian territory. i think it depends on u.s. and china relationship in general. if you look toward yesterday's meeting at the united nations, russia was only by such countries as syria, north korea, nicaragua and south africa or china were abstaining. this is a current situation and we need to talk to the chinese seriously about that. romaine: we appreciate you taking time to be with us on this very grim reminder of the war that continues to go on. the former vice minister of

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>> drop it like it's hot. personal spending coming in higher. so does inflation. kicking off with the closing bell and two hours to go in the trading day. romaine bostick alongside katie greifeld. >> is been a while. i've missed you. >> we are keeping an eye on the markets. >> it's not pretty. we have the s&p 500 off by 120%. it was down much more, so we are off the session lows, but an ugly and to an ugly week at