that is the difficulty we have now with severstal. get to damian sassower for bloomberg intelligence. the steelmaker had a coupon payment to make, if i big race period, they have missed it. can you walk us through that dynamic? what is and is not sanctioned? for the banks stuck in between, what are they meant to do? damian: severstal had a loan participation note that came do. a coupon payment was supposed to be made to creditors with a five day grace period. that five day grace period has now especially -- has now officially expired. citigroup apparently wired the payment by severstal to pass on to its bondholders, but has not done so because it is requiring approval to make that transfer, the u.s. department of treasury. so where do we stand? we stand with unsecured foreign obligations of severstal amounting to roughly 16% of all of that debt outstanding. basically, if there was a default and foreign creditors had to seize the underlying assets, the offshore assets only amount to 16% of those bonds outstanding, so to creditors one t

why is severstal failing where others have succeeded?n: sam: that is a great -- damian: that is a great question. they were supposed to make a coupon payment back on the 16th. they had a five day grace period. they failed to achieve that because citigroup required approval from severstal before they were going to transmit that payment towards creditors. they have not received that yet. here's the sticking point. if there was indeed a default, severstal's off store assets -- offshore assets only met 15% of the unsecured debt outstanding, who is it really the best interest of foreign creditors to allow that company to go into depaul -- into default? probably not. so they could have agreed to give severstal more time to make that payment, but everyone is looking at this from a different perspective, and technically this is a credit event. kriti: today was kind of a moment momentous -- kind of a momentous occasion for the russian stock market. what can we expect from the russian stock market, short trading bans, etc.? damian: we are talking

but just literally uh, that means our wonderful company severstal uh, sent a payment instruction froma small amount of there $ 12 million, but the payment was sent. and the city group payment agent seized this money, because on the e, the owners of the dashov, it means sanctions have been imposed. uh, that is, the same thing can theoretically happen with gas; it has not yet been included in the sanctions, so everything related to the energy sector has been excluded from the sanctions. so far today, but who can say that tomorrow the payment was sent. uh, buyers sent us payment for gas and the money along the way arrested. here again. uh, it turns out to be a dead end, so an attempt to pay in rubles. this is the right attempt. she e will not help, by the way, i love you very much. it is only at the first stage, maybe such a take-off, some rubles will provide, but theoretically, but in the future. in the future, this will not help much, i love it, but it really creates a new situation. why because settlements with russia she systematically different buyers will be forced to carry out con

severstal, the first russian firm to run out of time to pay a coupon, this moments ago from the potentialroducer in russia , they are saying they transferred payment to edit agricole, and they are -- two credit agricole, and they are refusing to process the payment. this is part of the story. it is just out there. the other thing i want to talk about might get your attention. the metals and mining sector is cut by morgan stanley on stagflation risk. they are technically downgrading the industry group. they are in line from attractive to a stagflationary shock. they think prices remain elevated, but they see growing risk of demand destruction and a period of low global growth. that is a major issue. tom: the fed focuses on inflation, and they do focus on i, gross, of course -- on economic growth, of course. i'm going to go back to what you told me years ago, which is your year starts arch 30 were -- starts march 31 because everyone starts going into frothing and foaming for the end of the year. jonathan: futures up 0.4% on the s&p. the nasdaq up 0.5%. for our audience worldwide, on tv and