juliette saly has all the reverberations from the deal. juliette: have a look at sony, we are waiting for it to close in tokyo, potentially on track for its biggest drop since 2008 as the market reacts to this 69 billion dollar deal from microsoft. really what it means is the industry is shifting away from the hardware-based model. we've been seeing a bit of weakness in some of the other game makers. some suggesting tencent can be a contender for the deal in terms of distributing some of the games but a little bit of weakness in hong kong. let's look more broadly at that impact of not only sony but the overall topix index is actually on track for its lowest close in august, down by more than 3% in the session. we've seen more pledge of support from the pboc boosting those developments in hong kong. really it continues to be a global story of rising yields, particularly coming through once again in the kiwi 10-year. manus: thank you very much, juliette saly with the latest on the asian markets. a pipeline runs from iraq to the turkish port o

let's get over to the first word news with juliette saly. juliette: the uae says two ballistic missiles were launched by human -- by yemen. the country's defense ministry says shrapnel fell on abu dhabi without causing loss of life. last week, yemeni fighters launched strikes that caused deadly fires outside abu dhabi. president biden's medical officer says the latest covid wave may soon peak. however, anthony warns the turnaround will not be uniform, with some states still seeing rising cases. >> in the northeast new england and upper midwest states, they have peaked and are starting to come down sharply. there are still some states, the southern states and western states, that continue to go up. but if the pattern follows the trend we are seeing in other places, things are looking good. we don't want to get overconfident but they look like they are going in the right direction. juliette: an italian mita -- media mogul has abandoned his bid for the presidency. this strengthens the prospect that mario draghi could be elected head of state. th

juliette saly in singapore. manus was just talking about oil and the rally had run out of steam. it's trading close to $84 a barrel following bearish sentiment of a climb in u.s. stockpiles. bloomberg's oil reporter, elizabeth. this is quite the come down here and it looks like a sentiment shift. is it? what has changed in the past few hours to see it come down from its highest levels in seven years? >> extremely bullish. we had strong forecasts. morgan stanley has been talking about how the dollar was. there is use coming up that it is considered to have not much of an impact as delta. not looking as strong as the previous quarter. incremental opec-plus supplies. there are some fundamentals. the u.s. stockpiles report is just another sector for the market to be correct on. i think just a drawback. market fundamentals are still presently quite tight. >> ok. let's see whether this pain endures on the downside in the oil market. thank you very much, elizabeth low, on this moment in the oil markets. to the diplomat

let's get to juliette saly in singapore. e biggest selloff in hong kong tech index since september. what are you looking at? juliette: absolutely. there were these lofty calls they hang seng index could rise by 50% in 2022. the start of the year means this could be bit of a mirage. down for a third day, the most since september and holding at the lowest since conception. the hang seng tech index, let's have a look specifically at tencent. it has divested out of singapore, nearly $3 billion worth of shares. actually tearing its investment in the sector for the second time in as many weeks. raising investor concerns about how much more the vesture could happen in this sector and weigh on the heavily beaten down index. bilbili coming under pressure. alibaba not falling quite as substantially as the others. that is after we saw that the daily journal, a software and newspaper business, doubled its take on the chinese internet giant in recent months. quite a bit of pressure coming through. the rising yield and not helping either t

dani: juliette saly in singapore. coming up, four rate hikes in 22 is the call from goldman sachs as well as a faster runoff. we will discuss that as well as market moves with our next best, sarah hewin from standard chartered. manus: and more on u.s. considering export controls on russia as tensions rise with ukraine. ♪ >> it is a confusing report. >> i'm not sure if it is an all clear here. >> the report suggests the economy has normalized to quite an extent. >> the signals are that the labor market is tightening. >> we are still moving along around a full employment dynamic. >> the fed cannot is gape the issue. -- cannot escape the issue. >> they are going to chase this thing and hike aggressively. >> four rate hikes are on the table. manus: our tv guests weighing in on the data and implications for the fed policy. the fed could raise rates four times in 2022 as it starts its balance sheet runoff a little earlier. a lot to absorb. sarah hewin is part of europe and americas for standard charter bank. a lot of voices

we have results from asia's most valuable company, let's get the details with juliette saly in singapore. how blockbuster were these earnings? juliette: we know we are in the middle of the crunch with strong demand, iphones, everything from tv's two cars. a 16% increase in their income for the fourth quarter, and there are another -- number of other factors as well. this is leading a lot of analyst to say they will increase in spending with the current projection of about $100 billion. you can see over one year we've seen it responsible for a huge spike in what we saw in the broader index as well. is it too expensive? this is the share price in the month of december. we got the earnings multiple remaining two standard deviations above the tenure. with got the fed in arizona expanding there globally. a lot of analyst out there very bullish on the stock. manus: thank you very much, juliette saly in singapore. coming up, we speak to eight minister inside the industry about the outlook for the country. dani: we will also look ahead to earnings season, what we can expect from some of the big

let's get to the first word news with juliette saly in singapore. juliette: france has registered more than 368,000 daily covid-19 infections, a new record, as omicron variant continues to spread across the country. the canadian province of quebec is reported to be planning a new health tag on those who are not vaccinated. 10% of unvaccinated adults represent 50% of people in intensive care beds. e.u. regulators are warning that frequent covid-19 easter shots may not be feasible. a european agency said repeat doses every performance will eventually weaken people's immune system and they want more time between booster programs tied to the onset of cold weather. israel has already given about 400,000 people a fourth dose. china may establish -- sources say the bank has been meeting with a consulting firm. the move would make standard charter the first foreign bank to fully automate a wealth manager in china. sony will continue producing playstation 4 consoles. bloomberg has learned the japanese company told partners late last year to continue making it

juliette saly in singapore. juliette: hey.d its allies sending troops to kazakhstan at the request of the probe -- country's president. the central bank says it will temporarily halt financial market operations following the biggest challenge the central asian countries leadership in decades. italy is to make jabs compulsory so people over 50 and will further reduce what unvaccinated people can do. this after covid cases rose to record levels. president macron under pressure after seven europe's highest ever daily count of infections yesterday. more than 320,000 cases. north korea says it testfired a missile on wednesday as it continues to develop strategic weapons and a challenge to the u.s. and its allies. state media saying it hit a target more than 430 miles away. the test comes days after kim jong-un indicated nuclear talks with the u.s. were a low priority. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. manus: thank you very much

juliette saly has her first word news. s johnson hasn't rebuffed a new cause for him to resign over alleged breaches of lockdown rules. at downing street just moments before the u.k. prime minister faced lawmakers for questions in parliament, one of his mps crossed the floor of the house of commons, defecting to the opposition labour party. reporting about the lockdown incident has been prepared by senior official and could be published next week. morgan stanley has raised of profitability targets and posted a surprise drop in stock trading revenue in its latest earnings. the bank now sees -- a more than 20% return on tangible common equity in the long-term, this is up from 70%. equities trading revenue jumped 13%, beating analyst estimates. fixed income revenue, meanwhile, was down 31%. 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. this is bloomberg. dani: thanks so much. juliette saly in singapore. coming up, the global ship

juliette saly is back with us in singapore. juliette: new york city's covid-19 infections may have reached a peak about a month after the first case of the omicron variant was identified. a seven-day average of emergency department visits have dipped significantly since the end of december. the european parliament president has died in hospital in italy. he was admitted last month due to a serious complication with his immune system. he was first elected to the european parliament in 2000 nine, becoming its president in 2019. 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. manus? manus: juliette saly in singapore. thank you very much. coming up, post-pandemic growth for the u.s. may look different according to fed chair jerome powell. we break down the comments with our guest, next. ts with our guest, next. >> i think they should go faster than the market. obviously it depends on how the economy evolves. my best guess

juliette saly joins us in singapore.e: after six days of chaos in italian parliament, the president was reelected this weekend after a search for an alternative candidate. mario draghi was originally seen as a top contender for the job, but in the end faced a veto rum three of the parties, leaving him to remain in the job of prime minister. he had been do to retire, but draghi asked him to stay in light of the stalemate. prime minister antonio costa has won portugal's general election and will have an absolute majority in parliament. he has been prime minister since 2015 and has pledged budget discipline as portugal looks to recover from the pandemic. the u.s. has reiterated it is ready to hold talks with north korea without preconditions. this comes as kim jong-un's regime fired a ballistic missile for the first time since 2017. it reached an altitude of more than 3000 kilometers, flying for 30 minutes. walgreens is said to have begun a talk for its international drugstore unit. it could be sold for as much as 7 billion

let's get to juliette saly with all of your news.iette: the world health organization says while the omicron variant may appear less virulent, it should not be considered mild. global cases had a record 71% from january 2, and deaths rose 10%. actual case numbers are expected to be higher due to underreporting. bank of america's scourging u.s. employers to work remotely next week as it monitors a surgeon covid cases. -- a surge in covid cases. wall street firms are rethinking the return to office plans. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thank you, juliette saly in singapore. big news from one of the meme stocks overnight. gamestop is surging. bloomberg earns of its plans to launch a marketplace for nft's by the end of the year. joining us now from singapore -- i think we may have lost her. this is classic meme stock, you are digging into that status by going into nft's. why not at this point? manus: i

juliette saly with the latest on the bullish call. my guest is the global macro strategist at -- i want to get straight to the chart we used at the start of the show. what we are trying to do, there are many superlatives about the rates market, the bear flat nurse. the scale of the velocity of the move in rates. what i have seen is that we are nowhere near the convulsions of 2013 on a relative basis. your assessment of the repricing in the bond market thus far. is there much more to go? do you think we will see a rerun of 2013? good morning. >> good morning. we are going to see much more and that is because of course the fed is so much behind the curve and they have to do more tightening in terms of targeting inflation. they might well be able to do five hikes this year, and qt, but what we are more skeptical about -- we see them becoming more dovish as financial conditions tighten. manus: do you see real rates making it to zero? >> the central banks are looking at this as the target. we do expect tightening from the fed to shock real

thank you, juliette saly in singapore. our guest is from bank of america merrill lynch. good to have you with us. we talked about the equity market under severe volatility and verlander repricing. when i look at rates, rates traders sticking to the guns. the rates market has yet to consider any response to the shakedown. how do you read the response? good morning. >> good morning. if anything varies, it's that the fed might more than what the rates market is pricing today. although equities don't like it. inflation is that 40 year high. the truth is the fed is still easy, still doing qe and as long as they are tapering. it will take a while for the fed to be able to create monetary policy. we are in a situation where the most likely scenario is the fed thinks more inflation will be persistent, and i think the markets are looking at a reality where the fed is not there to support equities. dani: we are going to dig into a lot of these and much more detail, but before the break, i want to get your thoughts. if it is going to take more for the fed to get markets to be more

let's get over to the first word news with juliette saly in singapore. akes are rising for boris johnson. he and his hat -- staff held parties that broke pandemic rules. the police process is likely to take longer than the ongoing civil service probe. reports say her investigation could be published as soon as wednesday. president biden says he has no intention of putting u.s. troops in ukraine. speaking to reporters in washington, he ruled out deploying u.s. or nato forces but said he would consider personally sanctioning vladimir putin if he orders an invasion of ukraine. atop white house advisor said that u.s. troops were ready to go at a moments notice. >> we have no intention of putting american forces or nato forces in ukraine. as i said, there will be serious economic consequences if he moves. juliette: global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. manus: thank you very much. coming up, deutsche bank and bank of america. the latest on banking bonuses. this

juliette saly in singapore. u.s.ussian talks have failed to resolve the standoff over ukraine. we dig into the geopolitical risk, next. this is bloomberg. ♪ manus: it is daybreak europe. i am manus cranny in dubai, on tenterhooks. i want to show you the personification of risk. these are some of the bond markets. russian and ukrainian dollar denominated bond yields. exploding on a 10-year above 10% . ukraine and russia. exponential explosion in yields. nobody owns russian bonds. it is an indicator of risk. the markets are pricing the worst possible case scenario. this is about worst-case scenario planning. martin malone and his tweet last night. the ruble, 15% devaluation relative to the past five-year average. it is imploding, worst-performing emerging market the start of the year. russia may false flag justifying getting into ukraine. sabotaging their own operations to fabricate maybe the opportunity to invade. what is the latest? are we stepping down or are we on the precipice of a hot button real war? >> it is lo

let's get to juliette saly in singapore. it seems the big market reaction is to u.s. yields, but what are you looking at in japan? >> a chart on japanese price pressures, not sure what is going on with our gtv data. we are focused on oil. we did have this change from the bank of japan to the inflation forecast for the first time since 2014, and what is interesting is they are saying for the first time they can see the possibility of inflation outstripping protections and not just undershooting. there is concern that price pressures which have been rising at the fastest pace since before the pandemic could be stronger than what they are when you flip out the government measures we have seen. also, gasoline prices, you have inflation pressures expected at their highest since 2008. that was a cautious time from the bank of japan, still only seeing the inflation target at 1.5% by the end of march 2024. the market has reacted as you expect. there's going to be that divergence as the fed tightens and the boj stays on hold. also the yield movement we are seeing and the japan

dani: juliette saly in singapore.coming up, we discussed the growing chorus of hawkish fed speakers with our guest. manus: plus u.s. banks begin their reporting season for q4. we bring you conversation on what to expect later. ♪ >> three hikes is still a good baseline. we will have to wait and see what inflation looks like in the second half of the year. if it continues to be high, the case could be made for four, maybe five hikes. dani: chris waller speaking to us on the u.s. rate hike path. his comments come off the back of many hawkish speakers from the fed saying we could see three, possibly four rate hikes. joining us now is a senior investment manager. you do not necessarily agree with the speakers, your thought is we will get two rate hike this year. why will the fed not be able to live up to what is priced in the market, which at this point is four rate hikes for 2022? >> good morning. i guess what we are trying to say is we can see the path to two hikes much more clearly. it is closer to us. it is the march a

manus: thank you very much, juliette saly singapore. coming up, we have more reaction from the u.s. fed chair jay powell. dani: and later, stay tuned for interview on the deutsche bank results with the cfo at 6:30 a.m. london time. this is bloomberg. ♪ >> the notion of a 50 basis point rate hike is highly unlikely. manus: the former u.s. fed -- new york fed president there. our top story, fed chair jerome powell thinking march rates may rise. he open the door for faster and more aggressive rate hikes. the markets have had quite a dramatic reaction. bond yields are climbing, the dollar is rallying this morning. the risk off narrative continues. when you look at three standard deviation moves, the curves are flattening. how hawkish a pivot was it in your mind, the fact that he has opened pandora's box to the risk of a rate hike at every meeting this year? is that a risk too far? >> yesterday definitely opened up further risk in terms of previously expecting quarterly rate hikes in march but now there is further risk. on the one hand, with the fact that they want to normalize policy, a

juliette saly is with us in singapore. >> elizabeth holmes has been found guilty of criminal fraud overollapse of her $9 billion blood testing company. a u.s. federal jury convicted holmes on four of the 11 counts she had been charged with. she faces up to 20 years in prison. she is expected to appeal her conviction and any sentence she gets. credit suisse says it is laying off 69 employees in new york according to a company filing for job cuts. the move comes in the wake of the rk goes collapse which cost -- archegos collapse which cost credit suisse. the washington post reports that today is the end of life date for the blackberry. the company is warning devices running on the blackberry operating system will not reliably function, be able to send text messages, or dial emergency services. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: coming up, the new ceos have been named at the world's biggest hedge fund. david mccormick stepping down from bridgewater. this