lisa: unicredit down a most 40% in that time.l continue forward with an eventful friday. it is led by the comments of the president of the united states in an hour from now. our annmarie hordern, an important conversation of the day with the foreign minister of ukraine. stay with us on radio and television. this is bloomberg. ♪ >> the american drop just two in his victory. don't forget tennis channels daily live coverage hits the are daily at 1:00 eastern. at xfinity, we live and work in the same neighborhood as you. we're always working to keep you connected to what you love. and now, we're working to bring you the next generation of wifi. it's ultra-fast. faster than a gig. supersonic wifi. only from xfinity. it can power hundreds of devices with three times the bandwidth. so your growing wifi needs will be met. supersonic wifi only from us... xfinity. as a small business owner, your bottom line is always top of mind. so start saving with comcast business mobile. flexible data plans mean you can get unlimited data or pay by the

socgen and unicredit each down double-digit, some 13% in the case of unicredit.by this time. those have the largest exposure to russia. it is not just about direct exposure, it is about the ripple effects of the u.k. in crisis. what does that mean for the ecb on thursday and potentially higher interest rates. let's get more with bloomberg financing managing director michael moore. let's talk about the ecb. if we do not get a rate hike, how much of the bull case deteriorates for european banks? michael: that is a major issue for the european banks and you've seen that in the stock price. if you look at the gap between the way the stocks of been hit in the direct exposure to russia, it is clearly not just about loan losses in lhasa -- in russia. it is about a lot of the things driving the optimism around european banks, the capital market activity and potential interest rate increases. those have fallen off and that has become a major earnings story for the banks. guy: what about the liquidity situation? the ecb will have to think about what it does with tltro's. l

davide: the italian banks -- unicredit has a domestic operation.borrow 100 ruble domestically. they are insulated. it leads to mainly european carpets and russia. -- in russia. the credit risk remains european. socgen the same. they are in my view, taking care. they are more exposed with loans. francine: has it changed the way how you want to invest in european banks because of the third round effects? or are you still fully committed to some of the share prices that are below their u.s. counterparts? davide: actually, no, in my experience, particularly the 1998 russian prices and having lived through the emerging market crisis, i think this is a great time to buy in on the stocks. the opportunities are unique. and here as i said the market has priced three or four times the worst case 1998 scenario which is full integration of russia. it means you apply zero to pretty much any russian assets. if you price 2-3 times, the worst is already in the price. francine: we have the story on the bloomberg terminal -- jp morgan and goldman sachs have been pur

the ftse mib down 3.5% we are keeping a close eye on the shares of unicredit which is down heavily let's look at sectors. this risk off mood being directed by the news we have out of ukraine regarding the attack on the nuclear complex which is in control of russian troops let's look at the utilities. it's red across the board. insurance off by almost 3% you can imagine construction and material down. keeping a close eye on that with all of the headline risk from the ukraine conflict given the role that russia and ukraine play in raw materials. oil and gas has been the one sector with resilience this week based on that spiking commodities prices with oil going well above $115 a barrel $120 a barrel in thursday's trade. highest since 2012 given how exposed and sensitive it is to the latest news out of ukraine. oil and gas off 3% looking at banks this is something we are focusing on with the latest news lenders in europe exposed to russian lenders. we had to shred menany of the relationships. autos off 4.5% inflation risk and raw materials and risk and also consumer confidence playing into

>> socgen follow bid unicredit. treavor: thank you so much. our bloomberg finance editor.oming up, bank of america, merrill lynch. the interview up next. this is bloomberg. >> as the exchange of fundamental responsibility is market stability. had we allowed those trades to stand. had we allowed the price to continue to spike up as you see on the graph there, it would have been extremely difficult for some of our market participants to continue their activity. in the final analysis, i think the sign of a good market, a long-term market and a fair market is one where we do look to the long-term and we ensure that we're going to be here not just through this crisis but for many years to come. for that reason, suspending trade and cancer it will trade was i believe the right decision. >> are you concerned that might set any kind of precedent. some trade rs say why change the trade if it is going to cancel your transaction for what one trader described as your own mystery reasons. the idiosyncratic reason for this has not been explained. >> absolutely the reasons are absolutely

tom: the austrians and rife us in bank as well as unicredit.is because of big retail operations in europe so they are much harder to move. goldman sachs have really only had a handful of investment bakers -- bankers. on the u.s. side, citigroup came out saying they have got $9.8 billion of exposure to the country. dani: is there any playbook of the past that the banks will look to to execute these changes? tom: this is unprecedented, certainly on the side of the economy. we have had sanctions in the past, but the finance was much more offshore. here you have actually got people on the ground, so that is really unprecedented. the situation right now is that sanctions comes in, things have been present, and a lot of eggs are trying to work out what to do. dani: thank you for keeping us updated as we try to figure out what the outlook looks like. you can read more online or on the terminal of today's big take. that is and i big take go. coming up, we get back to the big market story where the global index walked out to $.6 trillion. we talk about

unicredit, a big pair of dividends and share buybacks this year. this mean for their plans on returning capital? francine: thank you so much, as always. nick comfort from our bloomberg team. we have more questions for nick, especially when this gets worked out, when we see the end of these possible write-offs, and whether it takes weeks, months, and how investors should look at that. "surveillance: early edition" is next. we will have plenty more on the markets and the banks and oil. if you look at a lot of these european companies and stocks in europe, they are poised to look at a bear market, falling more than 20% from highs. it is really the banks that are selling off. stoxx selling off as oil trades at 130 bothers a barrel -- $130 a barrel. ♪ as a small business owner, your bottom line is always top of mind. so start saving with comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. so boost

unicredit is down 9.5% in italy in a single day. some of these banks have lost 1/4 of their value.e bank now down 7.4%. lisa: it is not just rates that are going to remain low for longer. it is also economic uncertainty. every analyst we speak to said it is more like stagflation in europe than in the u.s. tom: i remember you and i having lunch in zurich the day this was intervened in 2015. it could be today again. jonathan: are we at parity yet on the yen? not far off it. euro-dollar near session los. -- near session lows. from new york, this is bloomberg. ♪ ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. as the u.s. and allies tighten sanctions on russia and choke off investor demand for its assets, part of wall street are jumping on the buying opportunity it is creating. goldman sachs and jp morgan have been purchasing beaten company bonds tied to russia in recent days. thanks have to blind to comment. ash have declined to comment. -- have declined to comment. some members of the paris-based financial action task force have i

look at unicredit which is under pressure we are keeping an eye on banks and exposure to russia that sector performing badly red across the board in all sectors. dax in germany has been exposed to risk of the headlines from ukraine. it is off 3.5% this morning. there is no respite. a risk off mood in the equity markets this morning and the news we had overnight. >> rosanna, the markets are feeling the pain rosanna lockwood in london thank you very much. >>> let's get more on the developing story with the fire in the nuclear power plant in the southeastern part of ukraine. this is europe's largest facility and one of the ten largest in the world a fire broke at the complex. not the complex itself it has now been extinguished and the plant secure, but it appears russian forces have taken it they had one reactor damaged and the plant was seized by the military the iaea has been told by ukraine that the fire had not impacted essential equipment all reactors are safe. there had been no change in radiation levels the agency is putting measure in full response mode jennifer granholm spoke t

citi, ing, barclays credit, unicredit, they continue to finance.es there, the russian economy. companies like citi which represent america globally, need to take the time right now and make the right decision both financially for their company and morally for all of their clients and shareholders. >> were a foreign minister after, i understand, the annexation of crimea. what -- you know, seeing putin celebrating the anniversary of the annexation, with a huge concert and so on, i mean, what did that feel like for you? >> oh, it reminds me of pictures of nazi germany. we saw the stories on tv of many of the people being bussed there forcefully. but many being there voluntarily. what it tells me, he dr. an enormous amount of support amongst his own people. the stories, the disinformation that's filled the airways in russia over the last 20 years has been extremely detrimental to anyone's understanding of what's going on in ukraine. the combination of his own disinformation and then shutting off the access to social media, kicking out the free press. t

credit suisse -- sorry, unicredit down by 28%. 28.5%. commerzbank, down by 26%.ks that have been hit hard this week. it is not all one-way traffic. we have been talking a lot about the fact that europe is going to rearm, germany particular huge shift in terms of its approach, its strategy during this is not tactics, this is strategy going forward in terms of its rearmament. i mattel -- rheinmetall, up 40% this week. ian ardo, think attack craft, it is up 10% this week. thales up 16% this week. we are seeing a huge shift higher in terms of the defense sector here in europe. europe is going to rearm be interesting to see what impact that has on growth going forward. the trajectory certainly significantly depressed. >> some real pain in the markets here. defense really seeing that bad, and it is the story in the united states as well. let's talk about another american company. meta says it has uncovered russian efforts to undermine trust in the ukrainian government. cohost of "the close" carolyn hyde joins us with insight on how the ukrainian crisis is playing out o