kailey: thank you.ine, president volodymyr zelenskyy says russian forces are said to targeting the dom bass region in the eastern part of the region along a front with more than 300 miles. mark champion joins us now. we've seen violence in the dom bass just as in other parts of ukraine over weeks and weeks. what is important about this week? has the conflict really intensifying there? >> i think the first thing is in terms of the conflict, there's a defined goal that the russians have for now. they've had about a third of it since 2014 and they've taken more of it, more than half in total now since this war began. and now trying to take the rest. really the heart of the ukrainian army is stationed here. it's been fighting here for eight years. and there are a large chunk of the army that's stuck in trenches and their loss would be very dangerous for ukraine. they're also much further away from supply lines in the west than kyiv, for example. so they'll have more difficulty with logistics with the kinds

kailey: thank you.e, defenders of mariupol have been encircled by russian forces but they have not surrendered the port city yet. we also obviously know that the devastation in mariupol has been tragic during we are talking thousands and thousands of people who have died. president zelenskyy of ukraine has invited president biden to see firsthand the devastation in his country for himself yet the white house said he is not going to make the trip. >> that would be unlikely. the secret service has a great feel about putting the commander in chief in the middle of a war zone even though the white house has said they are considering sending officials as a show of solidarity. the city to the west, we saw the first fatalities, the first casualties of the war earlier today as russia opens this new week with a barrage of missile strikes across the country. in live viva, --lviv, several of them touched down. russia has said it has hit hundreds of targets. this is an important spot. the west, major city to the we

this is bloomberg. ♪ kailey: the u.s.gain is threatening china with sanctions if it offers material support for russia's war in ukraine and the biden administration wants to increase assistance to ukrainian forces. running us now is joe mathieu. we heard the president speak. he has been drawing on u.s. stocks filed any has not had to ask congress for anything. that will have to change soon and will congress be on board? joe: i think the answer is yes. the president announcing the $800 million shipment and said while we sent the heavy artillery, he is essentially drawn down everything that congress has given him to use, so it is time to go back to the well, and there will be a supplemental budget request that we had -- that we anticipate. we do not have a number and i suspect it will be big. the department of defense is working on the number to get exactly -- to get a sense of exactly what ukraine needs. when you listen to the language the president used he said he wanted an uninterrupted flow of weapons to ukraine so this

kailey: thank you.m now president biden plans to deliver remarks on his request to congress for $33 billion in emergency funds for ukraine. let us bring in annmarie standing by outside of the white house. 33 billion dollars, where is that money going? >> that is a lot of money and this is heightened in terms of the money they are sending over to ukraine. this will go through the fiscal year calendar through september 30. a chunk will go to weapons, $20 billion worth and weaponry assistance and a little more than $8 billion going to supporting kyiv economically and 3 billion dollars being asked of congress and what president biden will announce for food security and making sure that they can try to top up that market. also, a small carveout to support a 500 million dollars u.s. crop when it comes to wheat and soy. food security as a growing issue that the white house is taking note of. guy: well congress give it the green light, will there be any issues? annmarie: there is one issue with the timing of it

kailey: these are private individuals.t kind of training did they have to undergo to be on this mission? ch. scholz: fantastic question -- ed: fantastic question. up to 1000 hours of training. what they did was replicate the training that a nasa astronaut would go through, getting in and out of the capsule, how the emergency protocols work, how to where the spacesuit properly. the biggest part of their training was their time on the iss, weightlessness, the studies that they will do, many related to health care in conjunction with the mayo clinic. they had to quarantine for the weeks running up because of covid-19, but ultimately everything is looking good. guy: as they head downrange, how long is the iss, how long is the journey to the station? ed: iss orbits at around 240 -- there you have first and second stage separation. the falcon 9 booster fell away from the second stage, which is a smaller rocket, a single engine that you see on the right-hand side. that is propelling the dragon capsule. later on, we will see that

kailey: thank you.shanghai officials are building the world's largest makeshift isolation facility. they are trying to contain a coronavirus out that is china's worst since the pandemic began. with us now, drew armstrong. china is not the only one dealing with rising cases. you are seeing cases arising in europe as well, and the pattern has been, what happens in europe and u.k., the u.s. usually follows six to eight weeks later. is there any reason to believe that pattern is changing? drew: i don't think so. at least, he no, not in a meaningful way. we are already seeing a little bit of an uptick in new york, and that is happening in a few other places around the united states right now. u.k. and europe are better-vaccinated than we are. and what they are seeing right now is probably in part the result of fading immunity protection against infections and more severe outcomes you see over time. i think it has been reported in a lot of studies. you are seeing that inevitable uptake of, after community wav

kailey? kailey? kailey: breaking news we want to mention.tly warner brothers discovery is shutting down cnn plus. this is according to reporting from variety. this is cnn's streaming project. it launched less than a month ago back in march. it has brought on hundreds of people. the goal was to establish a closer relationship with consumers. in the same way a netflix or hbo max would operate..max would op. variety reporting that cnn plus is getting shut down. interesting to contrast this with the resultstrast this we got from netflixxwith the res . theults subscriber losses there. raises a question how systemic this is among streaming platforms. that's something we'll continue to follow. we also continue to we also con follow thetinue to situation in ukraine. and the economic ramifications not just for the global economy but for the global eco russianoy but for specifically. the situation just got a lot more serious. we'll talk with the head of emerging market debt at bloomberg asset management next. this is bloomberg. ♪ . ♪ : this is bloombe

kailey, pick up on your comments. kailey: we have seen risk sentiment rolling over.ures are flat if not lower on s&p 500. in the context of everything else going on, it is earnings season. jp morgan moving to the downside after misses on investment banking, big leg up on provisions on loan losses. $1.5 billion on that. the bond market, we are dealing with an 11 handle on producer price inflation in the u.s. 11.2% in march. not a lot of action in the bond market. 2.73 on the 10-year. tom: one of the great joys of doing this, i have a team that is behind me that is not a normal entourage that we normally have. it is 1900 reporters. we can parse out the people grinding out journalism who write piercing notes and questions. shelly banjo did that for me earlier this morning. i was stunned at the acuity of your notes overnight. give me one thing that we learned. shelley: the city is on edge, this is a pivotal moment, and the mayor is trying to figure out how to respond to this. also to get people to go on the -- kailey: if in. they had been arrested. abc is correcting that

kailey: mr.s talk about oil and what it means for the growth of your economy we got the latest report out of the imf earlier today. it estimates guyana will grow 43.5% this year. that is a remarkable number. how does that track with your own estimates for growth this year and next year as well? v.p. jagdeo: we are starting from a very blow level of growth. our g.d.p. it is just about $9,000 and we have had a struggle to get it there because 20 years ago, it was close to that of 80. and this would mean -- a huge growth in g.d.p. we have to be very cautious because globally, many people think that we are stream nag windfall. but at this point in time, after two years of production, we have received about $700 million in revenue from this sector. we have not spent any years yet, though we have budgeted for this year, the first one to utilize some of those resources because we wanted to pass strong, sovereign wealth legislation, which you get late last year. but it's not a whole lot of money coming i

kailey: that was the u.n.retary general antonio guterres on the call for a cease-fire in ukraine. russia's foreign minister is warning about the risk of nuclear war. now the latest from our senior reporter for international affairs. first on the subject of peace talks, which diplomats are still pushing for. does the situation on the ground indicate we are getting closer to a peaceful resolution to this conflict? mark: not for some time. what you have on the ground is a building offensive in the east and russia making it clear it also has goals in the south, that it wants to hold territory there to expand towards an area adjacent to ukraine, another pro-russian separatists territory, but in moldova. everything points to more war. until those factors are sorted out on the ground, it seems unlikely you will see any real progress in these talks. you had president zelenskyy saying yesterday that if russia continues to kill ukrainians in mariupol, if it continues to make these moves on the ground, then there is no r

kailey: we will have to table that debate. romaine bostick, katie greifeld, thank you both very much. coming up, our next guest says look at lower volatility stocks if you want protection against a recession. we will talk with dana d'auria. this is bloomberg. ♪ kailey: earnings season is just around the corner. let's turn back to our question of the day, will earnings disappoint? joining us now is dana d'auria, co-chief investment officer at envestnet. dana: thanks for having me. we are moving into a put into a greater volatility. companies that have been able to pass on inflationary costs, absorb them with greater productivity will start to see some margin pressure. i wouldn't say i expect a dad earnings season, but i do think the market have to be prepared for more volatility, hits growth coming from these high energy prices, more supply shocks, etc. guy: the idea has been [no audio] equities are an inflation hedge. will this earnings season crew that idea? dana: equities are inflation hedge over the long-term. small caps in

kailey: absolutely and u.s. that will be messy and on the european data front we will get cpi from spain and germany and of course, yes, more earnings from tech companies with the barclays standard chartered reporting in europe and of course, also considering geopolitics, antonio guterres will be meeting with president zelenskyy after he met with putin and lavrov earlier this week, bringing us back to one of the stories we have been so closely following today, gas in europe. after two hours of us discussing it i'm still not sure if i have real clarity on what's going on. guy: yeah, i think a lot of the lawyers out there will be going through the fine print of that contract. when does it satisfy? at euros or the point at which it's converted into rubles? that could be problematic and we will have to continue to watch this one. we might get some clarity but i'm not sure we will. kailey: we will continue to look for answers. coming up, the former u.s. commerce secretary will be joining david westin on "balance of p

kailey: we will continue to look for clarity.g executives answering questions right now as an earnings call is underway after a brutal report where shares were down 11% as a result. more details, next. this is bloomberg. ♪ angel: this is bloomberg markets . morgan stanley private wealth plus private manager joins us at 3 p.m. in new york. this is bloomberg. kailey: keeping you up to -- angel: keeping you up to date with news from around the world. the european union calls it lack mail. russia stopped natural gas flow to vogue area. moscow makes good on a threat to cut off buyers if they didn't pay in rubles. bloomberg has learned that some european companies already paid rubles for gas. spacex has launched four astronauts to the international space station. it's their first crew equally made of men and women, including the first black woman making a long-term spaceflight. jessica watkins. they will arrive there 16 hours after lunch. global news 24 hours per day on air and on quicktake, powered by 2700 journalists and analysts in

kailey: let's talk about that.u look at sustainable jet fuel, it's been more expensive than that of regular jet fuel. as we see regular fossil fuel prices increasing, is that gap closing, are we seeing sustainable options becoming more cost-effective? jeremy: it's true it's more extensive than petroleum jet fuel today but that's because it contains the cost of carbon and pollution unlike jet fuel which puts the cost of pollution and carbon onto society into climate change. the gap will narrow but i don't think it will necessarily close. that's not really the aim. this is a sustainable fuel. with these high gasoline prices i don't think anyone is arguing going back to leaded gasoline or going back to burning another hole in the ozone layers in >> -- ozone play or. -- ozone layer. >> taking the last delivery of russian crude, looking to replace it with other sources. i know that's for other parts of the business to deal with but i wonder how the war in ukraine is impacting on your universe and the part of the busines

kailey: thank you.hat this is such a fascinating and kind of big deal in the crypto space, because obviously fidelity is not saying you can put your entire 401(k) into digital assets, there is a cap, but just the ability to do so would be quite a development. i wonder if the audience of this will be skewing to the younger side, considering this is still a very risky asset class. guy: potentially, though, it could be a huge amount of money. this is what the department of labor has been saying, it has made it clear that it thinks this kind of thing is a bad idea so it is interesting to see fidelity taking a different tactic. kailey: they said a month ago that they threw cold water on the idea, saying it is too risky and volatile, that employers should exercise extreme care before considering cryptocurrency, so this will be an evolving conversation. a conversation we will have today at 1:00 p.m., bloomberg crypto, talking with the ceo of ripple. so it will be a really good show. we'll talk about 401(k)s an

kailey: what about the u.k.? energy prices where you are going higher, cost of living getting worse. what is your take on that, how that will influence a bank of england that wanted to be hawkish but now has some concerns around growth? philip: absolutely right. the narrative coming from the banking committee is different from what we are hearing from the federal reserve members. the message is, yes, we have inflation risks and more rate increases may be necessary in a modest way. that bank of england is very mindful of the cost of living squeeze on households. there are also personal taxes which are rising in a weeks time also, which will slow demand down. it is much more of a balancing act in the u.k., whether we will see further interest rate increases from the bank of england, or whether we see a much more modest situation than we expect. although we see rates rising before the end of the year, we see perhaps another half a percent, rather than the 1.5% that markets are pricing in before the end of the year.

kailey: you mean fundamentals?er] alan: we are not going to be talking about pe again and not price times ebit. or price times revenues. it gets down to all to millie, this should be some return. no need to name the companies, but there are still some of our major tech companies that have started up in the last 10 years, 15 years, that still lose money, and investors are still giving them high valuations. what happens at one point or another is you have an air pocket, just like if you are on a plane and it drops 10,000 feet. it does not go down a little bit at a time. it drops. we could see that happen if people finally say where are the emperor's clothes, i am tired of supporting these companies that don't show profits and don't improve their bottom line. kailey: we have to leave it there, but great to get your perspective. that is alan petra off, primetime partners cofounder -- alan patricof, primetime partners cofounder and author of "no red lights." we will talk with joe walsh -- joe wall of goldman sachs next.

i am angel felicity on -- kailey? ♪ kailey: just a few more hours to go in this trading week.y. next week, one of big event the markets will be watching, the federal reserve meeting and decision. for more, michael mckee joins us now. we basically know that the moon next week is going to be 50 basis points. the marking uprising in basically a chance at a 75 basis point move in june. are we likely to hear anything about that? mike: i don't think so. jay powell probably will ask about it but they will at the data drive their thinking. here's an interesting thing, what i call the evans index, charlie evans, the chicago fed bank president, started april by saying we only needed to do 25 basis points at every move. april 11, he said maybe we do a 50. now he is up to 200 for -- two 50's and then we do 25. let's see where charlie goes after the fomc meeting in the latest data we get. two days after that we get the jobs numbers. guy: the markets are kind of 190 in terms of the rate hikes we have over the next year, so we're basically looking at 50, 50, 50, 50. is that you think overdoi

kailey leinz information abramowitz -- kailey leinz in for miss abramowitz. do we have the courage this morning to look at the images on the cover of the newspaper? jonathan: haunting was the word used by the european council president. deeply concerning, distressing. how does europe respond to it? will they fall short? most people conclude they will. tom: this is not a war from other centuries or even world war ii or vietnam. there is an immediacy here that not only affects the war outcome but affects the policy around it. jonathan: a moral question has dominant of the conversation for weeks. how do they back away from energy? they can talk about reducing dependency this has become much more urgent. this electorate wants to see them do something immediately and you can see the pressure building right now. if they do that, you know what the price will be, almost a guaranteed recession. tom: i want to get to kaylee and the washington response let's go to that one headline. mr. demott -- mr. dimon demands a marshall plan for the eu energy security that has a ne

kailey is looking at me like you are such a nerd. kailey: never.jp morgan and morgan stanley and goldman sachs are the book runners. one of the phone calls will be to kriti gupta to see if she wants to load the boat on amazon. right now she is looking at the inflation-adjusted yield. kriti: we have to talk about the real yield because you were just talking about the idea of amazon, are they coming to market because they're expecting borrowing costs to surge. you talk about where real yields are headed as well as nominal yields. last week you saw steep moves. the real yield is catching a lot of people's eyes. we are 11 to 12 birds -- 11 to 12 basis points away from a positive real yield. the implications are significant, not just for the stock market, does that mean stocks become less attractive, but it also has implications for financial conditions. those conditions have not tightened as much of the fed wants them to. if you see a positive real yield that is viewed as a risk off mood. does that spur a tighter financial conditions index? that is som

kailey: you were talking behind your mortgage rates.ave to move into months because my lease is up. there is little inventory. tom: there is a surveillance park bench in central park. kailey: i thought that you're going to say that i can move in with you? tom: the dogs are too much maintenance. kailey: it is a very real thing that the federal reserve has to consider. one of the most direct mechanisms that the fed can try to rein in the economy is through higher mortgage rates. maybe try to cool down the housing market first. we are talking about a potential eight handle on inflation. has the federal reserve already made up its mind? tom: they have made up their mind. that is the heart of the matter. it will be the parsing of inflation, the goods dynamic, the service dynamic. it is actually a fed that is committed and far more importantly. in washington, madame lagarde will be there. lisa: we're talking about the ecb having their meeting this thursday as well. i go back to tom kennedy's question, at what point do these higher yields actu

kailey: on paper?om: i do not agree with that claim back to the securities exchange act of 1934 and 1933 as well. if we had that attitude back then, we would still be in the depression. kailey: fairpoint. but it does raise the question of whether there would be some kind of regulatory headwind for elon musk being on the board of twitter and owning such a large stake in it. if he joins the board he was going to be capped at 14.9%. if he's not on the board, that is no longer the case, and it raises the question of whether he is thinking of more of a stake or outright acquisition. lisa: acquisition? how does that fit into -- what, you can go to space and you can also tweet? [laughter] tom: he's got his own rulebook. that is what i know for certain. we will continue. stay with us. this is bloomberg. good morning. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. ukraine's president volodymyr zelenskyy expects russia to turn to more large-scale action thi

kailey: amazon down 12%.nly down 1% after the warning of potentially an $8 billion hit to revenue because of supply-side issues in china. what do you make of that move? it was worse overnight. alex: with apple, there is some profit taking by investors after earnings whether good or bad. with apple, it is all about supply. there is not necessarily an effect on demand. when his demand going to come? they keep pushing demand out. in quarter after quarter, they have not been able to meet it all. there is a new iphone coming later this year. perhaps investors think if demand is pushed out to the next iphone at a higher price point, that is not a bad thing. apple has to be careful about refresh rates in terms of how often people buy new iphones. are they going to be pushed beyond three years? five or 10 years ago, it was every two years. kailey: thank you so much to alex webb for joining us. this is bloomberg. ♪ guy: wrapping up the week in europe, we are nearly done. a long weekend coming up for many. the stoxx 60

kailey: exactly. we are seeing the same thing with the u.s. treasury market here in the u.s., and a lot of it comes down to that china story. we just have a headline crossing the terminal that beijing is expanding covid testing up to the entire city beginning tomorrow through april 30, so that is something risk assets have to grapple with as they consider the growth story out of china. that does have stocks lower on the day, though we are off of session lows. the s&p 500 off about 1%. you saw the nasdaq 100 in positive territory earlier. it then gave back some of those gains come up at the equity market may be helping stem the losses a little bit, the fact that we are seeing guilds move lower substantially so, down 12 basis points on the 10 year just shy of 2.78%. at the same time you are seeing a stronger dollar and the demand story out of china. what does that mean for the commodity complex? you're seeing a lot of movement in oil, trading at $96 a barrel. guy: i thought first thing this morning we will be talking about the french election. i

kailey: it is not a great end to the week for u.s. assets because you have the concern around the federal reserve, jay powell solidifying the market expectations of a 50 basis point hike in may, but that is not only what the market expects. we see 50 basis points in may, june, july, and maybe september. that is taking risk assets lower. the s&p 500 down by 3%. you are seeing to year yields, the and controlled by federal reserve expectations, 2.71 at the moment. the u.s. dollar also around its strongest for a while. oil down on the day by about two percentage points. of course, this speaks to the higher prices consumers are facing at the pump, not just here in the u.s. but elsewhere. that showed up in the u.k. data today. anna: let's pick up on that data having an impact on u.k. assets, the pound moving lower as a result. retail sales fell more than expected in march, the pound hitting its lowest level since november 2020. consumer confidence plunging to as low as the 2008 recession. with us now is the bloomberg editor for emea. the u.

tom: kailey leinz and for jonathan ferro. right now -- kailey leinz in for jonathan ferro.ht now, across the landmass of ukraine and the sea of ukraine, the black sea, is maria taddeo in luxembourg. what is the body language of the ministers in luxembourg? is it like 1939 frankly of pending more? maria: well, i would say the war is already happening and they are very aware of it. they worry about this potentially spilling over from ukraine and that has been clear. there are two things happening, one is we have the austrian chancellor going to moscow to meet with vladimir putin. that is making a lot of things -- people nervous. until now the european union has been united in their message or they worry this could change. i have an official who said this is not a time for amateurs. they also worry about the battle for donbas. tom: what is so important is quietly over the weekend, and mr. stubbs, the former prime minister, and friend of the show, made clear, i am shocked at the discussion of finland, of eu, finland, of nato. could that happen? maria: it could happen and it cou

kailey: what about the u.k. where energy bills are going to be a lot higher, and that cost-of-living squeeze is getting worse? aditya: the bank of england has taken a different approach, opposite to the fed. they said we are going to hike early, and hopefully that means we do not have to hike as much. the fed said we are going to hike later and potentially more. the issue in the u.k. is they are facing a triple shock. it was not just the pandemic. it was also brexit and now the knock on effects of the russia-ukraine conflict. there is the risk the neutral rate has fallen significantly, which curtails their capacity to hike. guy: it is amazing the different approaches being taken. we will see which one works out. thank you very much. appreciate the time, aditya bhave. kailey: we are going to move the conversation from the u.s., u.k. , and europe, to china. beijing says it is prepared to make a concession in a long-running dispute over chinese companies issued in the u.s. the nasdaq gold and china dragon index up

kailey: that is here in the u.s. talk about a market you have said is key to your future growth, and that is china. can you walk us through what you anticipate demand will be like in china given the ev market there is also very crowded? joy: china has the largest luxury market in the world, and we are seeing a significant increase in electric vehicle sales in that market. we expect it to continue to grow, and we think the inflection point there is going to be in that 25, 2026 timeframe. obviously there is a lot of government support for ev adoption there as well, and that will continue to be key. anna: we have been looking as we have been talking at images of this concept car. it is still a concept car, as kailey pointed out earlier. do you have any sense that this is one that comes to market? joy: this is the global debut of our concept car that really allows us to have a new design language for the future. you can see how futuristic it is and how much beauty is in the light and the different process we are going th

kailey: what about commodities?there an entry when given the run-up we have seen and the come down recently in commodities? would you add to those? >> generally, i like real assets. the commodities research team has incorporatedthe commoditiesm has incorporated some changes with strategic oil reserves and supply and demand changes. iced -- i think they still come out with a good upside for oil over the next year or two. they feel there is more value in diversifying across real assets and what -- and that is what the research has shown instead of buying a bit of oil. we found that you should add to all of them at the same time. there are different micro drivers. i actually like gold. i think it can be an asset to help you later in the year with some of the geopolitical risks. there is also a case for oil in the commodities space with diversified exposure. kailey: to bring it back to equities, earnings risk when it comes to inflationary pressures, higher wages and all of that puts pressure on the bottom line. do you e

kailey: talk about the role of opec-plus more broadly.e got there monthly report saying supply and demand will be impacted by the russian invasion of ukraine. therefore we can stick with the plan. if opec-plus doesn't move, can the oil market really move? is it all in the cartels hands? rebecca: they play very important role in stabilizing this market in the event the eu does decide to include sanctions against russian crude. they said pretty blatantly there is no plan on moving, so i think that's part of the reason we are seeing this rebound at the end of yesterday and today. those comments are very significant. opec is saying that is going to be a huge factor the with the sanctions crossed the line. guy: what's more important to opec right now? its relationship with moscow or washington? rebecca: absolutely moscow. first of all, russia is the second largest producer in opec-plus. if they lose the cohesion in the group, they lose their effectiveness in the market. so they cannot or they really want to avoid fracturing that relationship.

kailey: thank you. to bring you pictures from capitol hill, where janet yellen is warning of what she calls the enormous economic repercussions of the war in ukraine. right now we are listening to the democratic representative, mr. scott, as well, asking janet yellen a question. let's get more on this testimony from the house financial services committee. with us now, veronica clark of citigroup global. talking about economic repercussions, talk about how large those could be in the u.s.. we have deutsche bank, the first big bank out with a warning that the u.s. economy will fall into a recession in 2023. where do you put the odds? mike: -- veronica: near-term growth is still really strong. if i had to put a number two and i would say 25% for the next year. it certainly gets higher as we are getting into late 2023 and 2024. the near-term directives are from geopolitical issues. the main issue is higher gas prices, which can weigh on growth. normally we think of the u.s. economy as hedged to higher oil.

kailey: that does not at all reflect the risk in the oil market. china has covid zero policies and at 7 a.m. eastern time, the meeting in luxembourg and we expect the finance ministers to start arriving in an hour and we will talk about the macro economic nichter for europe and the war in ukraine is front and center and has provided inflationary force and growth risk for europe especially as there is discussion of ratcheting up sanctions. also a kind of fiscal report -- policy they may warrant. at 10 a.m. eastern time, factory orders are expected to fall 6/10 of 1% and we will get the final read on durable goods. finally, we are on payment watch for russia's dollar bond. this is coupon and principal payments due today. they fought back about 3/4 so watch to see if they stay current on their obligations. they have but it's a complicated process and it could get much worse on may 25. jonathan: team coverage starts right now. let's start with the distressing images from the weekend. can you help us understand with the european response has been so far

kailey: inflation becoming a political crisis. you are seeing higher prices lead to actual unrest in some of these countries. sri lanka is not alone in it. food prices globally moving higher. we know where that led us in the arab spring. even if the u.s. economy can be more resilient in the face of these higher prices, can the rest of the world do the same? i'm not sure the answer to the question is yes. lisa: we have seen the dollar strengthened as people talk about waning growth in the rest of the world. at what point does something break? we are moving at historic pace. not only are we seeing historic numbers but historic pace. risk assets have wobbled, the nasdaq is down 14%, but resilient earnings. tom: i want to jump into the video we are seeing today, the dollar stronger. the euro breaks down from 109. green on the screen in the equity markets. in the last three days, vix out to 24.14. we showed you mr. macron earlier, mentioned european wheat prices up six standard deviations. this is marine le pen speaking of her approach

kailey: maybe we have peaked. christine, does that exclude my equities are up and buying your it's -- and bond yields are down? >> absolutely. i think there was so much momentum into the move of higher yields that a lot did to stop in its track. to the question of whether this reverses the entire inflation narrative and the potential response to it, i don't think we are even close to a peak in that sense. the fed has been very emphatic about its plan for multiple rate hikes, potentially several 50 base point rate hikes. indeed, their plan for the balance sheet as well. one number that comes today slightly underestimate probably isn't going to reverse that process. guy: mike, let's pick up on that. is that going to have any effects on the fair? michael: no effect on the main meeting. the fed has pre-much telegraphed what is going to do, a 50 point rise. some say they count 25 of that coming from balance sheet, if they announce that. but the fed will be raising interest rates probably by 50 basis points in may and m

tom: kailey leinz, what do you see out there? kailey: earnings.ve been focusing on earnings, monetary policy, the war in ukraine, it is getting more micro. all of those things are likely to show up in reports, they showed up in jp morgan this morning, but what kind of support will they provide to an equity market that has been confronting somebody macro risks for the duration of the year so far? tom: i want to go to the japanese yen. lisa, this is really important. i cannot say enough over the years about how i find global new york wall street tends to ignore japan. it is over there, it is different, it doesn't matter. i looked at trade-weighted yen, looking back 25 years. what an ugly picture of depreciation. lisa: have you ever heard someone on wall street say, japan is over there? literally every note this morning is talking about the yen and this incredible move, what this means were trying to control a yield curve, when the fundamentals are taking over. kailey is right to bring earnings. if you don't have the momentum, you cannot hike. but if

kailey: and the look forward will also matter.ess so about what happened in the first quarter. as we have seen inflationary forces pickup, what will the outlook look forward in terms of pricing power, how much can they retain margin in the face of higher input costs? all of that will be important to watch this earnings season, which kicks off less than 24 hours from now. tom: we have to get back to inflation tuesday. lisa: people are saying we don't care, this is already baked in. if it is 8.6%, 8.2%, we don't care. do you buy that? tom: based on what i have observed, i do not. 2.78% on the 10-year. what if we get 8.6%? 8.2%? what if we get 7.9%? lisa: 13.6%? why don't we just throw numbers out? i am just making it up. tom: there is no gloom in capri for jonathan ferro. tom: seth carpenter from morgan stanley, coming up. this is bloomberg. ♪ >> keeping you up-to-date with news from around the world. march may turn out to be the high water mark for inflation in the u.s.. cp expected to show prices rising 8.4% from a year ago, the f

kailey: gas storage is 18% below normal.do anticipate that would be the situation closer to the winter? tody: that is a concern and why you are seeing higher gas prices throughout the balance of this year. this is another reason why we need to increase the gas supply domestically. it is an added benefit that we can make sure it stays full. that situation can only be achieved if we unleash lng and increase our natural gas production by 50%. that will give us the ability to make sure that our storage is always full. guy: you said to bloomberg earlier that you are weighing investment opportunities in lng facilities. can i assume that you are in long-term contract talks with either asian or european buyers? toby: that is a good assumption. ett has a lot to offer to the lng community, starting with our unparalleled scale. we have a pretty amazing inventory that will allow us to provide these volumes for decades. we have an ingress meant grade balance sheet. the gas that we produce is some of the cleanest in the world. very covete

kailey: thank you, ed ludlow.mmissioner for competition will be joining balance of power with david westin. guy: here in london i'm going to be going to the cable show. top of the hour 12:00 in new york, at :00 p.m. in london. looking forward to that show. -- 5:00 p.m. in london. looking forward to that show. this is bloomberg. ♪ announcer: this is "balance of power" with david westin. ♪ david: from bloomberg world headquarters and television worldwide, a comeback. starting today with ukraine, sanctions mounting as the senate voted earlier today to remove the preferred tray status for russia, as well as to embargo oil and gas. meantime, talks seem to be going nowhere between ukraine and russia. for update, we turn to our white house and

kailey: thank you.t member of the board of twitter happens to be the richest person in the world. elon musk. yesterday, he became twitter's largest shareholder with a passive 9% stake. mi the only one who feels like this is schooling really quickly? >> this escalated really quickly for something that was a passive state. the sec filing on the original steak was march 14. march 2050 tweets the poll asking if the platform adheres to the principle of free speech. march 26 he floats the idea of his own platform. the letter that the twitter ceo sent elon musk which stated april fool's. -- april is dated april 4. investors like it. guy: how is the sec going to be feeling about this? >> this is an interesting one. elon musk has gotten into trouble in the past for tweets. in 2018 he reached a settlement which required him to run any tweets that related to tesla where he is ceo and also a board member, was chair but had to step down, in-house legal counsel for anyone who followed the twitter account you will kno

kailey: you teed me up to talk about netflix so i will do that now. you see a bit of a difference for the major averages. the s&p 500 and dow are in the green. mastec pretty deeply in the red. a lot of that can be attributed to netflix, this plunged 36% on the day after earnings last night. 200,000 subscribers lost in the first quarter. pretty brutal picture and pretty brutal price action as a result. they command higher multiples is the yield story. you have yields coming in today we are down on the 10 year. a lot higher than we were even just a month ago about 75 basis points but it was the real yield captured our attention early on for a brief moment that 10 year yield is positive. right now it's negative about six basis points or so. anna: they specked that to stay around zero by the year end, let's get over to what is happening at the european central bank, one i've referenced in the context of the euro. european central bank could raise rates by the summer according to the governing council member, rate increase in july as possible and these are

kailey: from colombia to

ferro on sabbatical but kailey leinz joins us.d finland make history talking about joining the eu and nato. is a huge deal with finland. we have weak yen. the dollar is in a churn off the inflat

kailey: and tracking tesco's recycling. what your supermarket really

kailey: we have to leave it there but great to get your thoughts. liz young, sophia head of investment strategy. -- sofi head of investment strategy. they will shrink the balance sheet at a rapid pace as soon as may. the fed is prepared to take stronger action if warranted and hikes will get policy to neutral this year. we have heard from brainerd. next, we hear from someone else. the federal reserve is releasing minutes from its latest decision. we talk inflation, interest rates, and get the take of esther george, president of the kansas city fed. that's next. this is bloomberg. ♪ guy: welcome to our bloomberg tv audience and radio listeners. joining us from kansas city , missouri is policy corresponded mike mckee. standing by with fed president esther george. over to you. mike: thank you for joining us today. nice to be able to do an interview in person. esther: nice to see you. mike: you called for the fed to be measured and cautious in its policy moves. does that mean you would be against larger moves for the time being? would you dissent agains

here's kailey leinz. kailey: inflation really is the theme that drives all of them. up about 2.5 percent after profit beat expectations. they are facing higher prices but having success in passing goes on through price increases. as a result, profit coming in ahead of what analysts expected. whirlpool is an interesting one. the company cut its forecast for the top and bottom line due to inflationary pressures, can turn around a demand hit because of the economic environment and supply chain issues. it did announce a strategic review of its emea business, so that may be what is lifting sentiment this morning. different story for general electric, down more than 3%. it beat on the top and bottom line the first quarter, but for the full year, earnings are likely to come in at the lower end of the range. you guessed it, inflation and supply chain a big headwind for that company in particular. to bring it back to the twitter story, elon musk buying the company for $54.20 a share. it is still trading below that price, $54 -- he dollars $.91 -- $51.91. how does tesla stick

kailey: what keeps you up at night? a sculptor tells us about her climate nightmare.t was a natural focus of mine to emphasize how critically precarious our planet is becoming.

kailey: bringing the heat.k to the new heat officers and their efforts to combat global warming. >> we are looking at potentially going from seven days a year with a heat index of 105 in miami-dade to close to three months a year by mid century.

kailey: what keeps you up at night? a sculptor tells us about her climate nightmare. it emphasizes how

jonathan: some single names, we can do that with kailey leinz.ley: i want to begin with the cruise lines because carnival was out after the bell yesterday saying it just had a record in weekly bookings, up double digits from the previous record. listing its guidance that cruises should be avoided, basically we are moving past the pandemic in many ways in the travel sector. carnival is up about 4% on the back of that. some of its competitors getting a lift as well. of course, i also want to check on the big mover of yesterday, twitter. it had its best day since 2013, up 27% on the news that elon musk had amassed a 9.2 percent passive stake in the company. we will see how passive that really is considering he's already advocating for an edit button on twitter. one analyst at jefferies saying he thinks the rally yesterday may have been overdone because it is over -- it is unclear exact he what elon musk means to accomplish with that stake. nevertheless, up 1.3% for that stock. gains not continuing for tesla. it reported record deliveries for the fir