kailey: let's talk about the u.s.cers have by and large maintained the discipline, but with an $85 handle on wti and potentially more room for upside, are they going to be able to continue to do so, or will they be to enticed drill? amrita: ultimately, it does come down to shareholders. so far we have seen any company that talk about growing production, their share prices still continue to come off. i think shareholders are putting a lot of pressure on these companies, saying you still need to return money to us and reduce debt. that does not mean they are not going to grow. we think in the second half with these price levels, they are going to drill, but we should not forget, regardless of the overall financial backdrop, if you look at the supply chain issues, whether it be rig shortages, labor complaints, that is a big cap on u.s. production right now. guy: how much geopolitics is there any price right now? we saw the attack the other day in abu dhabi. abu dhabi never gets attacked. it is something that has happened

kailey leinz is in new york -- guy johnson. kailey leinz is in new york.is "bloomberg markets." we have a number of different evens taking place this week that will have a meaningful impact on the outcome of events in ukraine. we have a un meeting currently in session. we are all waiting to see what is going to happen next. russia's ambassador saying that what we have out of the west's megaphone diplomacy. friday, we saw president zelensky talking about the fact that there is no evidence of an imminent invasion. he described the evidence that we have thus far is insufficient. he warned of the west creating panic. let's figure out where we are, what the situation on the ground actually is, and what the response is lovely to be from the various parties involved. julianne smith is the u.s. ambassador tomato, and joins us now -- ambassador to nato, and joins us now. as i say, present siletz key -- president zelensky said there's insufficient evidence of an imminent invasion. he talked of his concern about western authorities creating panic. what is your read o

kailey: culminating in that jobs report. my question is, how close to consensus, if there is any form of consensus, are we actually going to get? i believe we are looking for 400,000, but it has been very hard to forecast whatever jobs report will look like, just as it is hard to forecast where the market is going over the last year. jonathan: it is a moving target. your median estimate is 400,000. does cooling the data help you cool the market? matt: i think if you call the data write and understand how the market values that data, it should help you predict the market outside a fixed income. if you knew what was coming in terms of inflation, and if you knew what was coming in terms of the's hawkish privet, you probably would not expect the 10 year yield to be at 1.50%. jonathan: no way, and that is exactly what we will start the conversation on and just a moment. can you tell me anything about the 10 year whatsoever. let's whip through the price action. the s&p advancing 0.5%. it won't be talking about american football ag

kaileyit is 30 minutes and the u.s. trading day. here are the top market stories we are following at this hour. to the brink and back. the dip hires come in and the nasdaq rebounds after following dangerously close to correction territory. the global bond selloff takes a breather. bank of america thinks loan growth and morgan stanley equity traders as bank earnings end on a positive note. we will take a look at the potential ripple effects of tighter financial conditions as the market races for more rate hikes. we will discuss with bruce richards, marathon asset management chairman and ceo. i'm kailey leinz, with my cohost in london, guy johnson. alix steel is off today. welcome to "bloomberg markets." the question is, does it stick? guy: that is the big question everyone is asking themselves. after yesterday, it is unsurprising that you do see something of a stabilization, particularly in equity markets. we are seeing a breather, but there's no way to go in this journey. cameron crise on th

kailey: apparently not.ll get to the options in the equity market -- the action and the equity market. there are some areas doing well when there is buying activity, and that is in luxury because consumers are splurging once again on jewelry and extensive bags. we saw that any earnings out of europe today. we will have more on that next. this is bloomberg. ♪ kailey: richemont, the owner of luxury brands, had the fastest holiday season growth in a decade. burberry seen 35% earnings growth this year. more on luxury now. what is behind the strength in the luxury sector? reporter: the strength is basically very strong fundamentals. we are seeing really strong appetite for luxury goods worldwide, especially in 2021 after the worst of the lockdowns and 2020. the vaccine take-up has allowed people to go out more, for stores to be open, for people to socialize, to eat out, and as we know, there was a lot of savings during the worst of the 2020 lockdown, so part of those savings were spent on these luxury goods. but

kailey: we have seen that.021, intel had to backtrack after it asked suppliers to avoid a product. it is difficult. for wall street, trying to capitalize on china, how do you do that? jonathan: the conversation continues. your equity market is up 32. as we kick off 2022, a lift to the equity market after a gain of 27% in 2021. heading into 2022 with a 10 year yield at 1.51. this is bloomberg. ♪ ♪ >> will not a repeat of what we had in the last few years. >> we will see less in return when it comes to developed markets. >> the buy the dip half-life has been drinking. >> the market has essentially gotten use this new normal. >> why should it be any different than 2021? >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: your equity markets flying out of the gate for 2022. good morning. this is "bloomberg surveillance, " live on tv and radio. adding to last year's monster gains. kailey: 27% gain for 2021, following big years before that. three years in a row of double

kailey: it has confounded a lot of people.hat economic data is going to matter to the bond market and to the federal reserve, because we are beating the drum towards the payrolls report on friday, but there has been a clear shift to focusing on inflation and needing to combat that. how much does the labor market data now really matter after that hawkish pivot we saw last month? jonathan: weighing in on that in just a moment will be gene tannuzzo, head of fixed income at columbia threadneedle. looking forward to that conversation. from a beautiful new york city this morning, good morning. a happy new year to you all. we've agreed that we will stop saying happy after today, given that tomorrow is january 4, and matt miller is losing patience, apparently. heard on radio, seen on tv, this is "bloomberg surveillance." ♪ ritika: with the first word news, i'm ritika gupta. president biden has reaffirmed u.s. support for ukraine's sovereignty in a call with presidents a lot of your zelensky -- president volodymyr zelensky. sanctions o

kailey: three hours to go u

kailey: thank you so much to bloomberg's david merritt.g up, one of europe's big discount airlines is counting on a big summer to help offset the misery of the past two years. we will hear from the ceo of wizz air next. this is bloomberg. ♪ ♪ guy: airline stocks higher in europe today. wizz air looking at european operations for planes and staff in terms of its plans to boost capacity here in the u.k. growing optimism certainly in the industry that test free travel, but is starting to come back in the u.k., increasingly on the continent as well, will have a significant impact on demand by summer. bloomberg spoke with wizz air's ceo and cofounder. >> more importantly, when you look at the next few months, we will be in a market that omicron and the whole covid crisis might have been behind us by that time. so we are very upbeat and optimistic, and we look at the future and what the next few months can bring to the market. we are growing capacity, looking at operating kits percent higher earnings capacity in summer 2022 compared to 2019. we

kailey: also tomorrow the u.s.f state travels to kiev to talk more about ukraine and russia. also verizon and at&t will launch their 5g service. coming up an exclusive interview with former u.s. treasury terry steven mnuchin -- treasury secretary steven mnuchin. that is on balance of power. this is bloomberg. ♪ >> from the world of politics to the world of business, this is "balance of power" with david westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." concerns overfed rate hikes and what they will mean for the economy continue this week. the reaction in the markets we welcome abigail doolittle. there is reaction continuing from last week. abigail: we have stocks down on the worst since september of last year. the dow at one point down 1.6%, the worst day since the end of november. that is important. this year is all about rotation. today we have the banks down because goldman sachs put up a disappointing report. this is everything

kailey: ira brought up pricing power. have a earnings lost their ability to be a stabilizing force in this market? kristine: i think really, it does not have the same power as it did in previous cycles. i can tell you that much because investors are very much focused on other potentially bigger things at the moment, primarily how we are looking at monetary policy changes and this new era that companies will have to deal with on an individual level as well. i think for them, they are definitely thinking about each directory -- about the trajectory of inflation we are definitely seeing as a recurring theme, whether it is in the luxury sector, lvmh displaying the amazing pricing power they have, or whether it is apple reassuring on supply chain concerns. it is part and parcel of the corporate earnings story. of course, whatever central banks do will have such a big bearing on the trajectory of inflation and all of those snowballing effect that companies will have to face this year. evidently something to keep and i out for,

kailey: thank you so much.hose supply chain issues and inflation issues aren't just limited to germany or europe. this is something business leaders around the world are grappling with. take a listen to what some ceos told us this week. >> uncertainty is the rule of the day. >> who knew that global just ask -- >> shipping and container shipping prices increased effector of three. -- increased by a factor of three. >> i foresee it being here until 2023. >> we will see price hikes from businesses to consumers. >> it is in evitable that some of that will have to be priced through towards the end markets. >> it is coming throughout the business, coming in supplies, coming in the wage inflation, etc., so of course, the key here is to maintain pricing power and to be able to share that pain with customers. >> it is not that inflation will go growing back to 1972 or 1982. it is that it will always be part of the discussion from now on. guy: joining us now to discuss the inflation area outlook on either side of the atl

kailey: here are the top market stories at this hour. stocks can't seem to get footing after a week of pricings not seen since 2008. selling pressure prevailing for now as investors question whether fundamentals or tighter policy matter more than markets. appleworks through supply chain issues to deliver a blowout quarter, but not enough to lift sentiment for tech stocks, heading for their worst january on record. and mondelez and chevron drop after earnings come up short. we will speak with the ceos of both companies this hour. from new york, i'm kailey leinz, with guy johnson in london. alix steel is off today. welcome to "bloomberg markets." it has been a week that has felt like a month and a month that has felt like a year. thank god it's friday. guy: that certainly should be the tagline for today. one more day to go for this month in terms of trading. this talk about the data breaking on the bloomberg terminal right now, the university of michigan consumer sentiment survey out. . a little fade. i'm surprised it is not more, given th

kailey: it is an excellent question.t sure i have the answer but i think the wage numbers will be important. as the vet thinks about inflation and its dual mandate coinciding with the labor market with stubbornly low participation, companies having to pay more to get people in the door. those wage numbers will have a particular importance. jonathan: michael mckee, have you got a final word? michael: we are seeing a major change in wages. benefits were up .9% during the month but not as much as the wage pressure. it is coming on the pocketbook side into the economy, although businesses have to make up those costs somehow. we expect that is one reason they're raising prices. jonathan: thank you. torsten slok joins us now. let's start with a big question. how does this fed engineer a soft landing? torsten: what the data is telling us -- omicron has probably put more pressure on wages and inflation. the big picture is as inflation continues to be elevated it is critical market is beginning to price in so many hikes. if the m

kailey: can we -- positive gdp growth. kailey: can we throw earnings out the window?ould not throw it out the window, but it is going to be two different factors here. what has been interesting about earnings is we are starting to see margin compression in a sequential basis. we are talking about eps beats, companies being able to meet expectations, but when you look at how revenues have been growing, you are starting to see that they are suffering a little bit on that profitability, and the reward is really going to be for companies that don't just beat on the top and bottom line, but also grow that profitability. kailey: as we work our way through earnings season and we wait for more reaction on that, do you expect volatility to tamp down? i am exhausted from this week. anna: we say that, but keep in mind, seeing the vix around the 30 is not 40, it is not 50. it is short-term volatility. what is important here is how the investor risk appetite has been. even last year, you saw there was a strong bid for risk aversion, and a high volatility style. think that is conti

with kailey leinz and lisa abramowicz. we are negative on the s&p 500 and very slightly negative on the nasdaq. yields are higher by four basis points, and we keep thinking about and talking about, predicting higher interest rates and the federal reserve. we'll go to five for the are, and up to 25 basis points in hike. a two-year will pick up the story. one of the winners of the year so far, the energy sector. on the s&p 500, more than 19% year to date. one name is disappointing this morning. that name is chevron. it is down 3.6%. kailey: a miss on the bottom line earnings coming in at 256. a miss on the upstream business. a miss on the downstream business. i'm talking with my sources at chevron later today. we may miss out on an oil boom that we have seen over the last several months. we are not talking about 90 dale's -- $90 a bale -- a barrel of crude. it will be interesting to see. we have a crossing, and at the top end of the three to $5 billion rate, according to ceo. we are trying to maintain this. prioritize return

kailey: could india's push to hit net zero get a financial boost in 2022?t india's green billionaires.

kailey: plus, the hydrogen revolution.ll speak with the ceo italian utility company snam about his new book and how green

kailey: could india's push to hit net zero get a financial boost in 2022?eet india's green billionaires. >> the groups have set out an extremely ambitious roadmap ahead.

kailey: plus, the hydrogen revolution.

. ♪ kailey: this week, dreaming of a green christmas.o how 3d printing could be the future of christmas presents. >> we have advanced machine technology along with ai and robotics to essentially allow us to work with fabric and a flexible and stretchy and all kinds of good stuff. and create from a roll of fabric to a finished garment. kailey: how can we lower the carbon cost of food? >> think about the quantities and sharing.

good morning, kailey. kailey: good morning. we are all busy here. some deal action for citrix, about to be bought by slightly below where it closed on friday. it is trading down about 3.25 percent. also moving to the downside is robinhood. this stock hit a record low last week. then cathie wood came in to buy a couple million shares. not a lot of people apparently joining in that before the bell. one mover higher is spotify. i am sure you have been paying attention to the saga over the last week or so. a lot of concern about joe rogan's podcast, very popular, not the most accurate when it comes to covid-19 vaccine information. joe rogan apologizing, saying he will try to do better research. that stock up about 120% after wiping $4 billion worth its market cap last week. there's also a number of stocks moving higher on analyst recommendations, one being tesla , getting upgraded with a $1025 price target at credit suisse. dan leavy saying he's hard-pressed to find another stock that checks as many boxes as tesla does. it is up 1.4 percent. netflix get

. ♪ kailey: this week how hydrogen can transform our energy usage.why the most abundant element can be a game changer. >> they are using it in other sectors and we use them in space, on our rockets and don't need the rules of physics to change to use hydrogen on our planes. kailey: from iron ore to green hydrogen, one of australia's richest men tells us about his pivot to sustainable energy. >> it's now. let's take action. kily

>> i am kailey leinz from bloomberg world headquarters in new york. tch "bloomberg green" on bloomberg tv and online. ♪ >> good morning from the asia-pacific and welcome to "daybreak: australia." i am in hong kong. >> i am in sydney. we are counting you down to asia's market open. china scraps winter olympics ticket sales to the public as the rise in covid cases causes concerns. the central bank could adjust its view of inflation risks. concern over the true scale of the hidden debt steepens. david: good morning to all our viewers joining us across the region. good evening if you are joining us out of the u.s. we will be tracking what has been happening in the credit markets. let's glance at where we are on the earliest indicators. not really a good sense. a little bit higher. i'm being extremely generous. a high close in europe. the next board will show you the real story with yields. the bank of japan comes out in a couple of hours. as far as oil, we are still trading your 2014 highs. more german 10-year bund is close to zero. we will be back in pos

similarly, looking at public spaces and making sure they are well ventilated kailey: -- well ventilatedso i think we put so much emphasis on dealing with the consequence of infection, we are not doing enough to stop infection in the first place. dani: if you could hang with me for one moment, we just got breaking lines out from italy on their covid numbers. 140 daily virus deaths versus 143 the day before. 68,000 plus new covid cases, compared to 61,046 the day before. if we are not concentrating enough on these measures we can do to prevent the spread of covid, especially here in the u.k., what needs to change so we do concentrate on that? stephen: the first thing isaac was got to do is to recognize the serious situation we are in. one of the things that has bedeviled the whole debate around covid is people are thinking in terms of binaries, either some thing works or it doesn't work. either something is good or it is bad. when we look at omicron, what is clear is it is good in the sense that it is less serious. it is bad in the sense that it is more infectious. in the short term the g

martin luther king junior king's image and philosophy of nonviolence are known the world over reporter kailey olivia's takes a look back at doctor king's work accomplishments and the obstacles he faced. >>traveling back to 1955. the n double acp chose king to lead the montgomery bus boycotts that 13 month long protest led to a supreme court decision outlawing segregation on public buses in alabama. king was now seen as the face for the civil rights movement while fighting for equal rights. he was tossed in jail over 20 times. his house was firebombed and he and his family suffered relentless personal attacks. despite the adversity, doctor king traveled over 6 million miles to deliver. 2500 speech is one of those being his famous. i have a dream speech at the foot of the lincoln memorial in 1963. gaining the attention of millions. doctor king became the youngest man ever to receive the nobel peace prize in 1964. he was also an advocate for voting rights. doctor king ultimately compelled president lyndon b johnson to sign the civil rights act of 1964. as well as the voting rights act of 1965. s

reporter kailey be sun has the story. >> more than 75 million americans now under weather alerts as snow, ice and blizzard conditions take aim across the mid atlantic and northeast. chicago under a winter weather advisory as thick, fluffy snow, cold streets and sidewalks causing headaches for many on the road. we are on our way to i don't think it's ever take- us this long to get here. but it was a pretty drive and i'd say the roads are not great. but overall, people are being pretty cautious. and i feel like i'm. >> and starting to see more plows. so hopefully, you know, hopefully pick up. there's a little smoother. the nor'easter expected to be more intense. >> it's being called a bomb cyclone, which weather experts liken to a winter hurricane. this is a powerful nor'easter heading straight up the atlantic coastline causing a lot of problems for a lot of folks. many n the area bracing for impact. governors of new york, new jersey and boston already declaring states of emergency storms could be devastating. they can be deadly. they can be is calling us to prepare the big apple could see

. >> sam kailey is -- >> i think general clark is right. are a lesser set of sanctions than an all-out invasion. gray war information operation, psychological operations. cyber operations. not unlike what they've already done. and i would see more of that. perhaps to try to solidify their grip on the donbas region and the two states that are now nominally russian controlled, although there's been a latent war there that cost 14,000 people since 2014. >> i do want to ask sam kiley who is there in ukraine right now, would the ukrainian military be ready for an invasion? >> well, dealing with -- they said they are ready. they are conducting operations as we speak. there is a -- the hot war, it's a low intensity war but there's a war going on in the donbas. a cease-fire signed in 2020, but recognized largely in cyberexchanges but as president zelensky said, when international dignitaries come, he likes to take them down there because you can hear the gunshots going on. in termed of the hybrid warfare the two generals who were speaking ahead of

. >> ian bremmer and elizabeth economy speaking with kailey leinz and matt miller.utlook on the global chip supply from felix lee. he says the market might swing to oversupply. we ask when that happens. ♪ >> 2021 was a wild year for the chip sector. as well as everything else. everything from iphones to play stations, cars and ultrasound machines need chips and they were not enough of them. automakers estimate shortages cost them $200 billion in sales. apple says it has lost $6 billion in revenue. the unprecedented severity of the chip crunch added geopolitical weight. it showcased how interconnected industries have become an pushed countries to produce domestically. our next guest says chip shortage may turn into a glut in 2024. felix lee, morningstar. where are we in the semiconductor cycle right now considering the supply chain squeeze, demand from vehicles and electric vehicles. do you see this flipping to another supply? >> what we are seeing right now is supply chain constraint up to 2024. because of lack of new capacity. going forward, we see demand from -- s

how does it impact your job on a kailey basis, joe. >> it effects everything [inaudible] officer rivera'sa police officer as she was speaking as if she was one. she was married to one. we are hearing people in the communities rise up. say that there is a problem. but now you are finally hearing the effect it's happening on the families of law enforcement. they are begging and pleading. we need change. this is not working. >> will: yeah. so i want to put that same question to you simone. when you heard those words in the eulogy, what were your thoughts. >> well, first of all, good morning, will, thank you for having me. >> will: good morning. >> my first thought was wow, this woman is so brave. she is so strong, she is so fierce to be standing up in front of all of that blue speaking her mind, speaking her heart. she was very, very strong. and you know, personally, i think that what he she said was true. i'm going to hold these people accountable. the system is failing police. we are constantly being gunned down day after day, what's this january and it's already been six officers. the peo