this issue is not, when i was in the central bank i was talking with the commercial bank, the central bank of afghanistan cannot do anything encourage foreign banks to be, foreign banking, it's only it's up to you. because it is a bilateral issue. if the foreign bank does not this bank on accepted rules of the bank, commercial bank, the corresponding corresponding system. the banks who are able to reach this level they had relations with the banks, some other banks, i believe it relates to the banks in afghanistan. it's not an issue that the government of united states or the government of foreign countries they can force their banks to have relations with afghan banks. you know in afghanistan, there's a lot of problems now in money, drug money terrorism, and the , relations with this many in afghanistan. many of them, not many, some of them are involved in drug money, you are involved in dirty money. so i believe that it's not an issue that the government here can encourage because the foreign banks would ask their government, ok. if anything happens and i was not responsibility and

for instance, banning a global central bank, particularly a g20 central bank like the central bank ofussia, from accessing its 615 -- from accessing its $650 billion of foreign change reserves, all of the banks have banned russia from liquidating the assets in their country. this basically will have very much unintended consequences, and that will deliver more flight to quality issues. the 1.5% to year yield we have today, we could easily see 1.2% or 1% before the week is out. dani: right now we are looking at a chart of funding stress on the u.s. dollar, oas swaps, the gap widening. you are looking at a huge flight to bonds, previously going into this year the playbook had been a tightening of central banks from europe to the u.s. you have your thesis going into this year before this crisis, before the war in ukraine. have you completely ripped up the book? martin: in a quick answer, the word is yes. simply because the shifts the g7 countries, the eu, have taken. we have to be cognizant, when you have a no-fly zone in europe, a complete freezing of all of russia's financial assets, a

when the banks are rated by central bank, then we have one. we have banks with this rating, two banks waiting too as two or three banks with rating 3. i should not take that, commercial private bank and also rating. >> thank you. anyone else? okay. we have five minutes left. more questions to the extent that we can. i want to ask a question on the medium to long-term but this is an interesting question to pose. is it a feasible possibility to create an arrangement straddling pakistan afghanistan border with preferential access to us markets for reconstruction opportunity zones to produce goods that come into the us with free access for preferential access, a case of putting the cart before the horse. would anyone like to discuss this? something that could make sense to contemplate down the road. if not, that is okay. i understand the focus is on the media right now. >> quickly on this. >> yeah. >> the whole idea of the bypass local regulations that do not favor private-sector development. but you have to ask, this harkens back to the question,

this is with the central bank governor of russia has to say about the situation calling it a nonstandard situation. that understates the difficulties of russia right now saying banks will serve liabilities. recommending the banks restructure loans. this is fairly intuitive to people in the business to understand this. the central bank has been sanctioned, basically today you don't have access to a lot of those reserves. they did conduct -- on thursday and friday. they suggested no interventions today because of sanctions and that's the visibility -- that's the situation you have and by the efforts on rates to take it from 9.5 to 20%. tom: talked about two or three days ago, the reality of margin calls and the commercial space with economic and central-bank spaces as well. the u.s. 10 year real yield, it's right down to pretty much the support we've seen over the last five days were -- i think it shows the tension we have with the bank of russia has mixed up. jonathan: by the time we went through all of this, i have no idea where it ends and i hope it ends soon for everyone's sake in ukra

yesterday's inflation shock may provide impetus for the european central bank to change guidance. see the bank of england and the fed boosting key rates five times each. even with two 10 basis point hikes, the ecb is expected to be a negative territory. joining me now is anne hutchins and jari stehn, managing director / chief european economist, goldman sachs. how difficult will the inflation print be to make christine lagarde remain dovish? jari: it was an upset surprise, the biggest in history. it does mean inflation will remain more elevated than they thought only in december. we think they will acknowledge that today, and flag upside risk to the inflation outlook, and they have optionality to respond. at the same time, we think they will stick to the message that inflation is likely to cool below 2% given subdued wage growth, and rate hikes this year are highly unlikely. it is an incremental shift since december, but we do not look for a policy pivot at today's meeting. tom: how do you trade the diversions -- divergence we see between central banks? >> the ecb is under pressure

rates to 20% after sanctions isolating moscow from the global financial system by targeting the central bank the s.w.i.f.t. payment system. >>> european stocks trade lower with banks leading losses as lenders are impacted by the russian exposure >>> and the defense sector rallies after germany boosts the defense spending to 2% of gdp in the historic military u-turn >> translator: on thursday, president putin decreated a new reality with ukraine this reality requires a clear response >>> let's take a look at how equity markets are trading sell off taking shape. the cac down 3%. german market trading at 2.6% lower. italian plunging 3% lower. the swiss market down .9%. ftse 100 is down 1.6%. we are seeing a risk off mode as some embrace and try to understand the sanctions, new sanctions imposed, announced by the west, will mean for european equities and the geopolitical picture. there is one sector taking the biggest hit of all the european banking sector. let's look at the trading. massive selling. c comercz bank down. we are dealing with the direct impact of the measures and what this means f

francine: yesterday was a big central-bank day and we had a conversation with andrew bailey of the bankf england. we tried to gauge how he thought interest rates would develop. let us look at these yields. we are seeing europe and the u.s. and even the u.k., they turned positive for the first time since 2016. let us bring in our chart because it encapsulated the concerns around the world that markets are pricing in. the yield on the side of government bonds are heading zero for the first time since 2016 where officials announced negative interest rate strategy. the question now is that the boj will follow some of these tightening policies. i do not know how much of a concern that is. drawing is now is virginie maisonneuve, global cio of equity from allianz. it moves across the board for the central banks. is there a growing concern that this will -- inflation? virginie: this could be a transitory hawkish moment. the reality is that we have new factors to prices, inflationary pressures, so that is an issue along with unemployment pictures around the world that are not much better. at the

this is why it is so much harder to gauge the tightening cycle from any central bank at the moment. whether it is the bank of england or federal reserve, they will need to be and want to be incredible he flexible. that is where you get these surprises. no surprise from the ecb right now. rates unchanged at -50 basis points. the main refinancing rate at 0%. they can from those december decisions out of the ecb this morning. lisa: we never expected to see a rate hike. the expedition is that it is going to be the press conference at 8:30 with christine lagarde that will be the most interesting. how will she address forward guidance? what will her parameters of risk be? how will she address the fact the bank of england is saying they are concerned that without tightening policy, they will not get back down to that inflation rates that they are looking for? how can she then can out and say we are not worried? jonathan: inflation may moderately exceed the goal for a transitory period. tom: there it is, that he word -- the t word. this is a separation here. in america, if you are going why

fallen by almost 30% against the us dollar after western allies announced the assets of russia's central bank will be frozen and some russian banks will also be excluded from the swift payment system. russians are already waiting in long lines, worried that their bank cards may stop working or that limits will be placed on the amount of cash they can withdraw. in other major economic developments, eu member states have banned flights by russian aircraft over the bloc�*s airspace. on thursday, the uk banned russia's national airline aeroflot from landing in britain. the british—based energy giant bp is divesting its near 20% stake in the russian oil company rosneft. bp said the attack on ukraine meant it had to fundamentally rethink its position, and its 20% stake in the russian company. and in germany, chancellor olaf scholz announced the country will now build two liquid natural gas terminals as it seeks to move away from its reliance on russian gas. we'll be looking at all of these issues over the next 30 minutes, but first here's how the markets are reacting. the price of oil has leapt. al

they expect that the czech republic central bank could -- something we haven't seen of the smaller centralanks. i want to get a check in on bitcoin, because bitcoin jumped in in the rally that we saw across the session late on thursday. we are down eight tents of a percent from where we ended use date -- u.s. thursday session. >> let's bring our next guest who has changed convictions in light of recent events. you see the hopefulness in the rebound we saw in the late stage of the u.s. trading day. do you think that there's a fundamental reason for that or are you fundamentally changing your positioning for the rest of the year? >> certainly not fundamentally changing our position for the outlook 2022. this market has been marked over the last six weeks by a lot of uncertainty around what direction the fed was going to go in mid-march. what we're thinking today as we see the nasdaq rally is that we got a bit of certainty that the likelihood for the fed to raise rates 25 basis points was priced in. that conviction of the market -- growth in technology. the reversion back to growth and techno

they have announced plans to sanction russia's central bank and block various lenders from swift. >> important russia banks will be excluded from the swift system. we will also ban the transactions of russia's central bank and freeze all its assets to prevent it from financing putin's war. >> there are a range of steps we have as options. >> president putin's decision to pursue his aggression against ukraine is a terrible strategic mistake for which russia will pay a severe price for years to come. francine: let's get the latest with our reporters. maria tadeo. christina it is in london. we begin with our reporter in moscow. the u.s. and allies brushing up sanctions over the weekend. we look at the impact we are seeing. the bank of russia response. how much has it abated that ax to the market? >> the ruble is moving within corridors at the moment. it had been falling, the central bank is preventing the currency from collapsing. you could say that that is successful. of course, that means they have abandoned exclusive video of the currency. francine: is there anything more? i don't kno

sources say the eu as approved banning all transactions with russia's central bank. move is part of an effort to isolate moscow's economy and financial system. in a worse case scenario if the bank would lose access to much of its $640 billion of reserves except its gold and chinese yuan holdings. the eu as a great to send $500 million of military aid to ukraine for lethal weapons. it will come from the bloc's peacetime facility. a chief says the package may include supplying fighter jets to the ukrainian air force. member states can abstain. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am paul allen. haidi: -- vonnie: thank you. commodities are headed for a -- week. how it will affect flows of energy, metals, and costs. details ahead. this is bloomberg. ♪ haidi: time no for morning calls ahead of the asian trading day and the chance for a crisis with russian banks has increased according to bloomberg economics. they now see risks for the deeper dive a directed economy and

and by april, central banks covering half the local gdp will raise interest rates. no doubt we are going on a trajectory but there are some notes -- the services industry in china remains dovish. the bank of japan remains in the dovish camp also. central banks are tightening an interest rates are going up but there are plenty of questions about how high they can go. dani: question marks we will try to work through in the rest of the hour. thank you for joining us. helping us work through that is kit juckes. a perfect time to have you on. over the weekend, -- your call on the euro is 116 versus the dollar. kit: i think there -- i think we started the year with the story being about the fed hiking and others not. that has changed and we are likely to get a hike from the ecb. i do think the global recovery has enough momentum that when we get through the turbulence we will see with this adjustment in equities and other assets that we will start seeing a range of currencies to better against the dollar just because everyone is playing catch-up on the policy front. betwee

transactions from russian central banks. the worst-case scenario, it is estimated the bank would lose over $640 billion in reserves, except it's gold and chinese yuan holdings. russia's plans for ukraine are growing in cost. a person familiar with russian planning says the military would have hoped for faster progress. still, u.s. officials see moscow as only having committed two-thirds of its firepower so far. the european union has agreed to spend $500 million worth of military aid to ukraine for weapons. more money will be provided for nonlethal purposes. e.u. the foreign policy chief he is sen. barrasso:'s it may include fighter jets for the ukrainian air force. members who don't want to supply lethal weapons can abstain. 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. i am vonnie quinn. this is bloomberg. ♪ rishaad: getting back to ukraine, and of course to the closing of the russian airspace many european airlines has so far

vonnie: news out of the european central bank and other banks. we are beginning to see the ripple effects of all this movement. the ecb is saying that a russian bank in europe and subsidiaries in croatia are likely to fail. sberbank subsidiaries in europe, croatia, pennsylvania are likely to fail. the central bank is limiting withdrawals from sberbank for two days and sberbank in the near future the european union -- unit is a monthly to pay its debt. we are already seeing ripple effects from the swift action. haidi: russia's attack on ukraine leaves its close ally china in an awkward situation. how to still support vladimir putin while limiting reputational damage globally. less bring -- let's bring in our chief agent corresponded stephen ingalls in hong kong. how is beijing walking this tightrope? stephen: very delicately. state media has been muted on the issue. yes there are editorials, but it remains fairly neutral in the reporting. this shows me there is not necessarily a consensus in the top leadership in beijing on how to play this endo f

the tradition of respecting the sovereign immunity of central banks. but with the details of the move still yet to be announced, it is likely to limit russia's ability to backstop the nation's banks. yeah, and that is a notable, especially as we talk about all of these measures that are being pursued. and yet, at the same time, we have the kind of keeping away from going really severely after rushes energy sector. now, given that europe relies on russia around 40 percent of their natural gas supply, how much of an impact would have on europe, specifically if they were to target rushes, energy supplies moving forward. now kicking russia out of slip that will hurt other economies, including germany. and russia, plays a very big role in the global energy trade and trace about 80000000000 euros with the e u, which is 10 times as much as the u. s. so germany, they've initially bought that the measure as it could hit them hard and caused energy supply disruptions that would in turn plunge their own country into chaos. so for now, energy is not being targeted

inflation has been one of the biggest forecasting messes by wall street economists and by central bankshroughout 2021. in europe, it was eight out of 10 inflation prints were above forecast. central bankers and economists did not really plan for the wake of the fiscal stimulus. at the end of the day, there was an ongoing demand. that was the case when it came to goods throughout that post-covid period. the supply chain constraints added to those inflationary pressures and as you said, they will abate as the year progresses but now, some of those inflationary factors have become more ingrained. with tight labor markets and wage pressure increasing, that will see ongoing pressure to underlying inflation. and the components of inflation continue to climb. they continue to increase on a year on year basis. they have not yet begun to turn lower. we see ongoing high inflation prints for the rest of the year. shery: which is why you have central banks asking and the expectation that the fed may hike rates more aggressively. what are the factors markets have to watch out for when it comes to wh

when you look from a central-bank standpoint, not just within europe, just globally come you've got tociate that's intro banks have to change. inflation is coming in much higher, and they are having to react to that. unfortunately for europe and the ecb, it is no different over there. we are now 4.5% in the markets pricing for 2022 inflation, so you've got jerome powell coming out last week saying maybe he would nudge his forecast a little bit higher. the ecb would have to do a whole load more of that. i think actually, the break they are getting at the moment is that they are not going to have to do that till march, so we might get continue will push back from the meeting on thursday, but they will have to shift their stance. although i think there is a decent chance we could be talking about a rate hike coming the end of this year. kailey: is that because the ecb can't sit out? iain: that is partly it. when you look at what is going on in europe, they've got the same kind of inflation dynamics that we've got here in the u.k., and in the u.s., maybe not to the same extent, but stilson

banks. what about moves towards russia's central _ russian banks.tral bank? . towards russia's central bank? those are the real deal. now we're about really serious economic and financial cost. sanctioning a central bank is rare and, you know, if done full throated lead could lead to a total breakdown and the ability to engage in monetary policy which means you could see the rouble simply go into freefall. ~ ., freefall. we have looked then at the central _ freefall. we have looked then at the central bank _ freefall. we have looked then at the central bank and - freefall. we have looked then | at the central bank and looked at the central bank and looked at swift and noticed that western countries in recent days are targeting a number of oligarchs, those billionaires were seen to be close to vladimir putin. i wonder if there is a paradox there. a few original to be targeted surely you are also written off to have worked out ways around sanctions. have worked out ways around sanctione— sanctions. yes. that is very true. sanctions. yes. that is very

new penalties target russian central bank. sian banks have been barred from the swift messaging system. russian markets were paralyzed. the russian currency lost a third of its value in offshore markets at one point. it hit an all-time low of 109 in moscow. and introduced some currency controls. leasing firms may have to recalled jetliners with billions of dollars per threatened the carrier's ability to function and operate rented planes. they are leased mostly from companies based abroad. pp selling its shares in a russian firm. they've been in russia for three decades. just weeks ago they were staunchly defending their presence there. td bank has agreed to purchase the first horizon in a -- with the price representing a premium. td will use excess capital on its balance sheet for the transaction. 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. i'm ritika gupta, this is bloomberg. ♪ >> european union steps up once more and support for

should permit the central bank to function. dab is cut off from the world that afghanistan needs central ranking to regulate its currency stuff the most straightforward solution would be to revive dab to keep the bank independent. u.s. has described unfreezing the central bank's assets. williams of dollars in frozen assets remain stuck in legal proceedings but the u.s. should signal an intention to return the funds to the central bank. in the meantime, the u.s. could immediately return hundreds of millions of dollars that belong to private depositors, ordinary afghans who have been deprived of their savings. the u.s. must reduce the impact of sanctions, recent humanitarian exemptions are praiseworthy but u.s. sanctions still choke the afghan economy. treasury cannot feasibly risk every permitted sector in the afghan economy. u.s. officials must forbid what is not allowed, for example arms trafficking. many of these steps require cooperation with the taliban and its hard and it's distasteful especially as the taliban continue to

this is money so the central bank can function. what that would allow to happen is it would float the value of the afghan money. the paper that they used to go to the bakery to buy bread, that paper would retain its value, but it would also mean that the baker's, when they are buying wheat flour, that the traders have u.s. dollars to buy the wheat flour that comes into the country and goes into the afghans daily bread. >> thank you. when i was in kabul, we were in armor and helmets, armored vehicles, pulling up to the meeting with the afghan women. teachers, nurses, they arrived and had no armor. they had no protection. when we finished the meeting, we put back on all of our armor to get down to the vehicles and the women just walked down back into the streets of kabul. how do we make sure that those courageous people get the funding and -- because as you can see, they would make it tough in many ways for the taliban to interfere with their ability to help their families or the the community they are trying to help. what is the for

— paralyse russia's central bank, would they? paralyse russia's central bank, would the ?m the _ would they? well, i sadly hope so but from the announcement - would they? well, i sadly hope so | but from the announcement today, would they? well, i sadly hope so - but from the announcement today, we don't yet know exactly what the language means. restrictive measures on the use of reserves, tied to sanctions, banks is what i am assuming. it is not completely clear and not a full blanket set of sanctions and we also don't know the effective date. i am hoping the effective date. i am hoping the effective date. i am hoping the effective date is today but we don't know. ~ ., ., , ., , effective date is today but we don't know. ., ., , ., know. what does it actually take to fli that know. what does it actually take to flip that switch _ know. what does it actually take to flip that switch on _ know. what does it actually take to flip that switch on a _ know. what does it actually take to flip that switch on a swift? - know. what does it actually take to flip that switch on a swi

that seems to be the central bank's worst nightmares. we are expecting a lot of earnings in the u.s. tom: that wage story is crucial. you see that at the top with the likes of starbucks pain $17 an hour now all the way up to the banking sector. amazon building on that story. in terms of the corporate stories we're talking about today, big earnings. bp on the left of the screen meaning 1% on the back of a solid set of numbers and the cash flow is coming in after a strong year for that energy provider. this story repeat itself and it seeks to return cash to shareholders for bnp paribas. but they are down almost 4%. revenues coming down on the tech sector stateside. and ocado, they missed estimates and the capacity of the demand continues for e-commerce. we will check back in with that stock shortly. we wants to get back to the yield story. the fed session -- the debt session for the first time in 10 sessions, the german to year yield does not and a higher. we have the commentary from christine lagarde softening the edges and saying that an

francine: how much pressure will there be on central banks? we heard from the ritz bank.wanted to have the reader cross affect despite inflation going to another place then either u.s. and europe, are we going to see more of that? wei: indeed, given the strong correlation between those rates, there is an initial effect and also inflation and global dynamics are important across. there's is also the transmission mechanism. this is what we have seen, the latest ecb pivot. they are ruling out 2022 rate hikes for now, not doing that anymore. what we are seeing is a collective central banks in the face of elevated inflationary pressure riven by supply constraints -- driven by supply constraints. the central banks are under pressure and it is tough. we believe we are still in a cycle where the commodities should be more muted compared with previous cycles. if they do carry out more rate hikes through the whole cycle than previously expected, there is yet to be easing. overall, they are moving forward for future rate hikes but not adding to the current rate hikes. that distincti

the tween wall street, the fed, central banks, governments, etc. but, but why it's permanent is because there is such an external amount of fabricated money that has found its way into all the cracks and crevices of the financial markets. and so many different ways that it's impossible to ever have any of that come back even if the fed, for example, were to cut its asset book by, oh, i don't know like a half a trillion or even a trillion. you know, these enormous numbers that we talked about. it wouldn't change the fact that that cat is out of the bag that, that from now on, we are in a condition that there is no returning from it. it is not temporary. and so what happens from here is really a new error, and that's why i consider the distortion to be permanent. and what happens from here to be the next phase of where we go? we're not coming back, right? i saw a report this morning, the federal reserve bank and they say is continuing to buy assets, purchase assets, all the talk about unwinding, quantitative easing and rate raises at some point. it,

and i think that could be done because central bank is a separate entity. it is run by the board. the board has the full economy in the board, the size overall based on the deb law in banking law. they have the authority to be able to take action when you got to allocation of everything and anything, and different assets, they have the authority to be able to acquire assets. they have the authority to be able to, to dispose these assets promotional. these are buses for the authorities really lies what independent body, which is that is more which of the highest policy making in decision making body at, in, in the canister. and that is why that the linking makes sense. you're a government says you're dealing with the supper. i ask you for giving me. can i ask you, can i just ask you one question briefly? what if these funds, if these afghan assets are not released, what do you fear will happen already? half the country is a need of humanitarian assistance. we've been talking about 20000000 people. on the brink of famine before the taliban take over, the financial system was very fra

and central banks. scri lampga fell 25% last month after repaying a $500 million bond and worries and the country has been scouring for funds to propose up his reserves. and since the pandemic began, the nation's leaders have south between the major powers while resisting a bailout. we have the governor of the central bank of sri lakinga. is on track to bolster its reserves and avoid a default? [indiscernible] >> those have been useful and at the same time, and many discussions going on. and at the same time, they are hopeful and that's the key here that we would like to have -- [indiscernible] >> and last two years, we haven't been able to enjoy and most probably and have 100,000 and perhaps -- [indiscernible] >> governor, you mentioned a little bit more much where you are getting these funds including china. can you give us more clarity of the size of this and the timeline. >> dhien is 1.5 billion and india there is a new line of 500 million -- [indiscernible] >> there is a new demand for imports and

that is what central banks do.try to analyze periods of cyclical weakness or cyclical strength to bring it in line with where they see the potential supply of the economy. when they see the potential supply in a world of extreme bottlenecks and some of these relate to energy, some of these relate to labor markets, is that going to be more persistent or will we, once the pandemic has eased, and maybe people have used up their financial persistr will cushion, whether that is through government handouts or bitcoin trading come if that fiscal push has come back, we will see people return to the labor market. this is the issue about the long-term supply issues might be quite different to what we face currently. the current picture is actually in the short-term demand has been stronger-than-expected, the supply constraints have been worse than expected, and monetary conditions are too loose. therefore we need slightly more aggressive tightening? we think the bank of england will be done in august, if not before in terms

beyond that, will it inform own more hawkish reaction from central banks, or the possibility of the potential step? gareth: it's a tough question. it's still sort of early in the process. given that it's a financial sanction driven war, it's obviously not on the ground, but we do think it means that the biggest risk for financial markets is commodity chaos in that one of the largest exports -- ships can't get service when they hit different ports. and getting stall with potential pipeline issues, these are some the issues resulting from commodity chaos. it will drive further markets direction when it comes to inflation. it's very bullish for the space. i think one of the biggest things is a lot of investors, economists saw inflation in one direction, so it start to moderate as soon as april or may. that will be pushed further back . moderation getting further back and central banks will get really nervous. this is why we feel the central banks are still focusing on inflation. we think it will be more focused on inflation. shery: gareth nicholson with his views on where the markets are headed.

ok, some strong messaging coming out of two european central bank's.t the first word news. >> yes, boe has raised its key interest rate in a bid to contain inflation and is on course to top 7% this year, despite nine policymakers supported a 20 five basis point increase, four members voted for a 50 basis point hike. after announcing the decision, the governor tempered expectations with more aggressive policy moves. european central bank president christine lagarde is no longer ruling out an interest rate hike this year in a pivot towards tightening. she delivered hawkish comments, citing record inflation, after keeping asset purchase plans and other measures unchanged. that has led investors to bring forward ecb action, with some analysts expecting the first rate hike in september. >> there was unanimous concern around the table of the governing council about inflation numbers. we are all driven by the same mandate, which is price stability. we are all concerned to take the right steps at the right time. >> the nominees for the federal reserve says she

all eyes will be on the tightening move on central banks. tive territory for the first few moments of trade, nifty banks index trending higher as well. rish. rishaad: asia has a new span with indian daniel. he is expanding minds and he expands his net worth by $90 billion. this is a rags to riches story, but what triggered the rise for us to this space? reporter: it has been massively boosted by the kind of shares he has in companies. the month the new stocks have grown by more than 2% since 2020, and some of them have more than a thousand percent. that kind of momentum has what have brought his fortune to the levels we see today. they are relying on his bets into crude energy and it is moving towards green emerging and lower interest around his company. this is making him growing his profit rates. haslinda: what about the underlying conglomerate? how do they perform? reporter: the past few years has been a massive diversification. the company has now bought into the airports, renewable energy, data centers, and there is a bit of these sector

that no one can do business with the central bank move money in or. busy out at the sanctions also target the direct investment fund in russia, which is the sovereign wealth fund, which many people in the financial world here in the united states. see this as what the call vladimir perkins slush funds. so they will not be able to do business with that any more as well. this is all in coordination with various allies. the white house has from the very start, said that any sanctions have to be coordinated with their european and global allies. and they have to be sustainable because they don't want countries coming after 2 or 3 weeks and saying, yeah, we don't want to do that any more. we've had a readout of that meeting. nowhere was it discussed though, according to the reading. but we're told that the u. s. is talking to allies about perhaps releasing oil from the strategic reserve that would help ease the pressure on global markets and also reduce the price of gas at the pumps at that is a growing concern for joe biden. we know as well that essential

the russian central bank had put out a message| forward. the russian central. o the russian people saying don't panic, we have gold reserves that we will sell domestically to get those roubles back in, but if anyone understands how this works they are afraid that money will not be there in their accounts so they are airing on the side of caution, going into those banks, so there was a run on the bank so to speak to get as much of their cash out now before things get worse. monica, for now, things get worse. monica, for now. thank— things get worse. monica, for now, thank you _ things get worse. monica, for now, thank you very - things get worse. monica, for now, thank you very much - now, thank you very much indeed. in round about 20 minutes we will have more analysis on those new sanctions imposed on russia being excluded by swift, some banks, how the financial markets are reacting, the freezing of the central bank reserves, all of that to come, later in the programme. many people have had to leave their homes, displaced within ukraine. sarah raynsford reports

hard to distinguish between economic development and oil markets because if we had inflation, central banksther in europe or the u.s. for example taking more aggressive stance in terms of inflation, that will have repercussions in the economy and as such in oil demand as well. >> interesting. at bank of america it was a little bit earlier, uton said i was wrong. that shell wasn't going to stop the run off. it would be iranian crude. with that in mind -- they reckon that if iran gets done, it could be a game changer and we flip to surplus of a half a million to a million barrels, do you concur with that math? >> if i look at previous example, which became effective in january 2016, you can easily see how it managed to have about several thousand dollars a day within a few months and today the expectation if i want to call the international agency they are expecting between 1.3 to 1.5 barrels a day. that would hit the market gradually especially when combined with additional supplies coming from outside such as the u.s., canada, brazil. then that is the question. actually if you look at it, w

to central banks are still to report, we get the bank of england and then we get the ecb.it will be interesting to see the two different stories there. jonathan: we've got live coverage outside the bank of england. tom: let's do the pandemic right now. we go to south africa. cape town is over 7000 miles from auckland, new zealand but we are focused on new zealand where they announced a plan to open up new zealand. how far are we from other nations saying enough, we are done, we will open up? when do they do a new zealand? >> in this region in south africa, we have lifted more restrictions in south africa. we are seeing a number of countries like botswana and zimbabwe around south africa in this post omicron, post eltel position where so many people have had the virus, vaccine coverage is low but we are coming out on the other site. in this region, you will see more restrictions lifted. this is a really young part of the world so much has an average -- so malawi has an average age of 18. >> we knew there would be a lag in the u.s. and we knew there were be a hospitalization

— would paralyse russia's central bank, would they? well, i sadly hoe bank, would they?dly hepe so but _ bank, would they? well, i sadly hope so but from _ bank, would they? well, i sadly hope so but from the _ hope so but from the announcements today we don't yet know exactly what the language means. restrictive measures and the use of reserves tied to sanctions banks is what i am assuming. it is not completely clear. it is not a full blanket effective set of sanctions. we also don't know the effective date, i am hoping the effective date is today but we don't know. what does it actually _ today but we don't know. what does it actually take _ today but we don't know. what does it actually take to - today but we don't know. what does it actually take to flip - does it actually take to flip that switch on a swift? who does it? my _ that switch on a swift? iwir,�* does it? my understanding that switch on a swift? �*w�*irr does it? my understanding is there is a vote that occurs and again, president biden and the european union have wanted with the uk to act in concert so t

also 100 billion to 100 billion around the central banks the federal reserve, the european central bank, the bank of england around 50 billion are under control of private banks but we prohibit it with sanctions. they came out with no cash three things will happen they're already happening. one thing is that there's a run on the ruble, the currency collapses. people run away from the domestic currency they want dollars, u.s the second is already we're seeing it today, tomorrow the run on banks the banks will collapse like a domino the banking system will fall, and people want to withdraw foreign exchange denomination, and the banks don't have that kind of cash so the banks will close. and the third, weeks months from now, that transactions and payments that all companies or businesses will demand dollars because the ruble is -- and so successful businesses will give dollars. unsuccessful businesses, they will close there will be huge unemployment and work stoppages and supply chains will break down >> let me restate that you're saying the first impact is a run on the ruble. second run o

right now don't trust central banks.s why i see the 10 year and 30 year part of the curve -- and that's why we anticipate a flattening of the curve. manus: i think you have summed it up beautifully. i think that is somebody coming to the front door. it is ok. [laughter] live tv. dani: the bond market is volatile, the people are literally knocking down her door the find out what is going on in this market. [laughter] manus: have we stopped panicking in your household, are we back? pooja: we are back. i am so sorry about this. dani: is it someone upset about the bond markets? pooja: yes. dani: fantastic. [laughter] we have answered the door, that is settled. manus, it is a volatile market at this moment. what do you make of the boj? we were talking earlier fx wise bnp paribas about the funding currency, the boj saying they will buy. is the pain over in the japanese market? pooja: we saw the boj will -- unlike most central banks, they have said they will keep their policy supportive. but right now it is driven mostly by tre

it overlaps on what is happening to the central banks. we heard from the fed official, one fed official suggesting 50 basis points is still in play for march. we have data going to come out thursday that will give us more details. the additional inflationary data that comes before the meeting. effective february 10 or thereabouts and you had the markets pricing and 50 basis points. that is down to 30 basis points now. the blue line is the s&p futures. the white line is the 25 basis point hike priced in. the markets are not pricing and 50 basis points at this point, but the door remains open according to a number of fed officials. we are waiting for that additional data, manus. manus: i think michelle bowman's language overnight is where the treasury market will slip to if there is any kind of progress or de-escalation in the ukraine-russia forceful action. lots of notes in my inbox. 122 trillion. a lot of headwinds in front. let's see what the sanctions are if and when they are announced by the u.s. and their allies. tom mackenzie in lond

but policy tightening by central bank throughout the world have investors concerned it might affect the bank of japan's future policy. and in india, the send faxes out by one and a quarter percent for the week, despite being up for the week for the selling of indian equities, its highest level since the last global financial crisis with 4 point $5000000000.00 in stock being sold in january is global market space, so different sell off. and as we've discussed this week, the government is projecting growth of as much as 8 percent and fiscal 2023. the government also unveiled its budget for the year with an emphasis on infrastructure projects to push growth in australia. the assets is up by 2 percent for the week. the index was able to weather the storm as equities elsewhere have been volatile and made earning season. the reserve bank of australia on friday said it sees cor inflation hitting 3.25 percent in the 2nd quarter of this year, while unemployment will fall to 5 decade low. it's now with all of those projections, the central bank said it is important to remain patient when it comes

the european central banks, the federal reserve, the u. s. the europe, so the well, the bread and the pound, that will be the last to adjust. so this to me is david beats goliath moment. they can have gained see a radical where the early you adapt and follow what else, how the door does. the more likely you also benefit until the very last person all the very last country that adopts to this, i think it's much, much bigger than just creating a single point. we already know that a lot of things happening in argentina. now brazil is stepped up, start talking about big coin. other countries in central america are now rumored to be possibly in line to make a big claim, legal tender in the very, very near future. well, anyway, saw me. it's great to see you. and i think the all the a team is in place for this volcano bond to really take the world by storm. thanks for being on the kaiser report. yeah, thanks for sharing this whole journey a call. wait. see where we go next. all righty. well, that's going to do this addition of kaiser report with may

and a central bank. those kicked off a system will have to use a telephone, or a fax machine, to send cash, internationally, helping to turn russia into a global and economic financial pariah. according to a senior white house official. for more on how washington is responding to the ukraine, i want to bring congressman john. member of the house on services committee. congressman, welcome. you and i spoke actually last weekend, when you are still in brussels, and we spoke a lot about the unity that we were saying with nato, especially surrounding their unity against any aggression coming from vladimir putin. and we talked about whether or not he would actually invade ukraine. and here we are, one week later, and the throws, it seems that a war between russia and ukraine. and i can't help but think about that how the world has been captivated by president for volodymyr zelenskyy who has been giving in and out, but has chosen to stay, armed, and fight, for his people and for his country's freedom. you actu

i want to start with the central bank. the decision by the u.s. and the eu to freeze all assets from the russian central bank either in dollar denominations, eu dom nominations or in u.s. or eu countries. any transactions with those countries as well in the -- in dollars or eus is significant. it isolated russia from the financial system. think of the russian central bank as the heart beat of the russian financial system. and this is when you talk to officials what they are pointing to most. over the last several years, president putin has built up the forth largest foreign currency reserve in the world. 630 plus billion dollars and part of the reason was to insulate from western sanctions. essentially, this would allow them to prop up their own currency. allow them to provide liquidity to their banks. this would allow them to be viewed as sanctions-proof. no longer when you go directly at the central bank and start to freeze assets across the globe. now when you want to figure out how rare this is to target a country's central bank. look at the c