k2 vonnie quinn. vonnie: thank you.'s army says russian forces are attacking along the line of contact in the donbass region. lome zelenskyy says moscow has launched a new campaign. president biden has vowed to provide more artillery and allies have agreed to continue wrapping up sanctions against russia. the imf's flashing global growth forecast while projecting faster inflation on russia's invasion of ukraine and renewed virus lockdowns. it sees economic expansion slowing in 2022 down from a forecast of 4.4% in january. >> inflation has become a clear and present danger. even prior to the war, it surged on the back of commodity prices and supply demand imbalances. thanks have moved towards tightening, more disruptions amplify pressures. vonnie: police have killed one person and injured several others when they opened fire on protesters. officials say they fired live rounds in sri lanka after tear gas failed. pakistan has appointed a new finance minister. if confirmed, the economic aid will be among officials responsib

i am vonnie quinn.hery: with over $2 trillion in assets under management, and what -- bny mellon tells us why they are focusing on japan. but also, the sydney australia tells us that equities are undervalued. that is next. this is bloomberg. ♪ l it is probably above 50%. -- it is probably above 50%. but an important point to me, david, is how deep a recession. i think the odds of a really deep recession, you know, some people are raising the shades of paul volcker and the deep recession we had then. i think that is very, very unlikely. extremely unlikely. shery: the former fed vice chair alan blinder, on the possibility of the u.s. recession. , next guest sees a brighter future for fixed income. joining us is mahjabeen zaban from citi australia. good to have you with us. how big a role will fixed income late your portfolio this year? mahjabeen: received fixed income to be a next important element. the fundamentals behind that are really that market losses in fixed income we saw earlier this year. we see

let's get the vonnie quinn with headlines. vonnie: the u.s.conomy unexpectedly shrank in the first quarter. g to be declined at 1.4% following a 6.9% basis growth at the end of last year. economists had called for a 1% increase. contraction was due to a ballooning trade deficit and less robust consumer spending than anticipated. gina said the figure is not a trend for the economy. >> you look at small business starts, they are higher than ever. talk with ceos, the economy is resilient and growing. obviously, you don't want to see this. it is disappointing. but, we were not surprised. i do not think it is a trend. vonnie: president biden asked congress for $33 billion in aid for ukraine. white house officials say the funding would cover ukraine's costs through september 30, the end of the current fiscal year. the proposal would also get the u.s. new authority to seize and sell the assets of wealthy russians, allowing the government to use the proceeds to help ukraine. -- agreement with the imf within two months. in a speech to business leaders,

vonnie: u.n. treasury secretary janet yellen and other central bankers have walked out of the g20 meeting after russian officials began speaking. head trader -- head chair from powell and boe governor enter bailey and ukrainian finance minister were among those who left or turned off their cameras when russian officials joined virtually. russia is on course for its first extort all and more than a century. the country has reached the terms by a derivative pay in rubles not dollars. a potential failure happened earlier in april. russia could emerge in the polls -- dollars before the grace. ends. the you to government proposing to delay a decision on whether boris johnson could face a parliamentary investigation over the restrictions. the government says it should be delayed until police can make their inquiries and the u.k. cabinet. global news, 24 hours a day. on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloo

i'm vonnie quinn. this is bloomberg. yvonne: art, bunny. -- all right, vonnie.sure when it comes to risk assets. chinese stocks in particular. csi 300 lower by 2.5%. we are heading for the lowest close since july of 2020. commodities on the flipside of that falling as well. still prices in china down some 3%. you have some breaking news. haslinda: i do. this comes from twitter. the twitter ceo saying elon musk has decided not to join the board. as on the back of elon musk buying a 9% stake of twitter. the ceo saying on musk has decided not to join its board. will bring you details. the ceo of go to group joins us for the first interview since listing in jakarta. plans for expansion and a secondary offering in the u.s. keep it here with us. this is bloomberg. ♪ yvonne: recapping the breaking news we got from the twitter ceo. tweeting elon musk has decided not to join the twitter board after they had offered him a seat but he technically declined after a lot of drama we saw last week whether it was raising his stake. also with the twitter pole, whether we may need

i am vonnie quinn.rg. ♪ haidi: -- shery: shanghai has reported more than 13,000 covid cases on monday, the first time since the beginning of the pandemic. the sweeping two-phase lockdown in shanghai aims to test all 25 million residents, to uncover the spread of the highly infectious omicron variant. we have emma o'brien for the latest on this. what do we know, and what is the latest when it comes to these infections? emma: yes, a very lofty number today, 13,354 from just over 9000 cases yesterday, so a significant pickup. it will be said that it is because they are intensively mass testing. the lockdown initially was in two phases, lockdown one part of the city for four days, opened that back up and then lockdown the other for four days. but the reality on the ground is that most of the 25 million residents of shanghai are under some form of restrictions, as they step up the mass testing to weed out cases. haidi: what are we hearing as being the implications for the broader economy and businesses locat

let's get to vonnie quinn.e: the white house says it is preparing a financing package with more details to come. that's after u.s. officials committed an additional $322 million in foreign financing. lloyd austin told reporters the goal is to see russia weakened and the company -- country has lost a lot of military capabilities. the philippines may hike its key rate as the central bank on one's accommodations. they may choose to wait one more cycle before making any moves. they have maintained rate increases are appropriate. >> the next meeting is may 19. hopefully i will show first quarter growth. vonnie: the hong kong foreign correspondents club is suspending an awards show over concerns of the national security law. they are worried about unintentionally breaking laws. they will continue to promote press freedom and hong kong. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. sher

i'm vonnie quinn. this is bloomberg. haidi: the rba's under pressure to begin tightening monetary policy. the economy has been gathering speed. we will have a preview this hour. our next test says attempting a soft landing and it is like mciver defusing a bomb. this is bloomberg. ♪ >> the yield curve inversion. >> the inversion of the yield curve raises the >> risk of recession. that is a more challenging environment for equities. >> it's telling you the economy is strong today but may not be in the future. >> you need to dust off the checklist for a recession. >> it's telling us the fed policy reaction function right now has moved very much toward fighting inflation. >> in terms of the bond market of yield curve inversion -- >> this is where the debate is being had. >> this is the markets adjusting at a much faster pace. >> the fed needs another level -- another letter to pull on. >> expect them to be even more hawkish. shery: some of our guests on bloomberg on what the yield curve inversion could mean, including recess

here is vonnie quinn.e: emmanuel macron has defeated maybe let them in the french presidential election. he won a second term bolstering the block as he tries to deal with the war in ukraine. his win is seen as removing a key risk for markets. >> this day has to respond effectively. vonnie: south koreans president sent a group of lawmakers to japan, warning ties between tokyo and seoul would be a boon to the u.s.. pakistan is asking the imf to extend loan programs, the finance minister says the request was made during talks with washington. the world health organization is investigating an outbreak of hepatitis which has second children. the who says 169 children have been afflicted by disease with 10%. haslinda: antony blinken and lloyd austin are in keefe for talks. >> we have heard that they are meeting with president zelenskyy. this is usually symbolic. this will be a meeting, this is a top meeting. it will also raise expectations about a possible visit by president biden. they have all made visits rec

let's get to vonnie quinn. vonnie: thank you.d states is setting ukraine $800 million worth of military hardware. president biden announced it. it signals a more intense -- janet yellen has called beijing and criticize practices that unfairly downloads the national security interests of others and warned beijing to help and russia's warring ukraine or face the loss of standing in the world. >> china will be affected by chinese reaction vonnie: law enforcement officials arrested frank james admin happen after a shooting at a brooklyn subway station that injured two dozen people. earlier s&p lowered to its third lowest level. the decisions come amid widespread political and social unrest. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: we're discussing the latest on debt troubles and why beijing is bailing out the struggling nation. most economists are expecting the mlf to be slashed as soon as

on vonnie quinn. -- i am vonnie quinn. >> a country exposing structural weakness. >> and recession fears are overstated in the u.s.? but justified for europe? details ahead. this is bloomberg . ♪ >> there is a lot of uncertainty. >> global economic growth. >> growth is in a difficult place. >> tightening global liquidity. >> will they be able to retain margins? >> what is being said about current conditions? >> the market rather focusing on the hard numbers going forward will be more focused on the guidance. >> this is a time for a defensive play. >> the worry is, what is the outlook for the next quarter or the rest of this year? >> i don't think, frankly, any of us know. >> let's bring in our next guest of that says they year-end rally may not materialize. always good having you with us. the earnings outlook at least so far seems to be rather positive. are you concerned about profit margins at this point? where do you see the opportunities in this more challenging time? >> profit margins have been revised from 13% to 12%. we are still above 10% which is the historical level. we need to

let's get over to vonnie quinn with the first word headlines. vonnie: the u.s. trade chief says washington wants to realign its commercial ties with china rather than seek a divorce. she told us exclusively the biden administration's policy has been focused on realignment in the global economy. the aim is to address the lack of visibility, accountability, and diversity in supply chains. >> i would focus really on the kind of changes we are trying to bring, which are really not about stopping trade, or trade divorce. they are really about bringing reform and more strategic approach to new trade. vonnie: pakistan's supreme court deferred a decision on the legality of the prime minister's decision to resolve parliament and call early elections. its chief justice has told lawyers to conclude their arguments by wednesday to a panel can hand down its verdict, although no date has been set for a ruling to be announced. sri lanka's president has revoked emergency rule within days of imposing it. the order had given him sweeping powers to seize people and property, but h

vonnie: this is daybreak: asia.nch president emmanuel macron is set to face nationalist rival marine le pen in the final round of the french election. macron won 28% of the voting. pakistani lawmakers are said to vote in their next prime minister after him run, is ousted after a no-confidence vote. a united opposition block gather the votes necessary to remove him from office. russia will hold auctions for the remainder of 2022. much as finance ministers says moscow is halting all local sales for the remainder of the year. the coast of ensuring government debt signaling a 99% chance of default. russia's invasion extending into a critical time for harvesting. and during the planting of corn and some flowers. -- and sunflowers. ukraine's output could be 30 to 55% lower. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: chinese defending its zero covid strategy as the u.s. asks american

i'm vonnie quinn. this is bloomberg. >> still ahead, our guest is particularly focused on the apple sales figures. plus, earnings season could be raising more questions than answers. this is bloomberg. ♪ shery: we continue to see more stock market volatility. this will be the biggest move since 2011. our next guest says this is raising more questions than answers. it's good to have you with us. there seems to be a lack of conviction despite the fact that we have gotten pretty good numbers at least from the previous quarter. where is issue. >> the issue is there are so many variables that could change even the positive numbers in a short time. through the mutual fund lends, are moving short-term. there is some conviction that they could trade on sector movements and earnings, but it's not a long-term phenomenon. the real hope is some degree of stability and the only place that seems to be offering that at the moment is china. >> can you repeat that about china? what is the conviction there? >> the convi

i'm vonnie quinn. this is bloomberg. shery: still ahead, we discussed the imf's outlook as lockdowns disrupt supply chains. first, optimal capital says buying the dip in gold will continue to benefit investors as the fed tightens. we will discuss that next. this is bloomberg. ♪ bloomberg. ♪ >> inflation is much higher than what they were dealing with in 2019, now it's clearly through it. but they will bring it back down. it will come up and down if they have to. it is not like they will just wait it out. they will have to move higher than what people may feel short-term rate is what the economists believe, and i think the data shows it. shery: the bank of america ceo there. let's bring in our next guest who says there is a very low probability of a soft landing for the fed. with us now is frances stacy. good to have you with us. right now we are seeing spot contracts pricing in a 50 basis point rate hike in each of the next two fed meetings. how much of your concern has to do with the pace of the tightening right now? fr

i'm vonnie quinn. bloomberg. ♪ haidi: china has signaled it would loosen monetary policy at an appropriate time as the country ties to combat and excavating covid-19 outbreak, something that is hurting commodity prices. the pboc is planning to set up a stability fund to rescue troubled financial firms. our coanchor yvonne man joins us. what do we know about the sanctions? yvonne cold in the state council meeting came out yesterday, you mentioned an appropriate time. some are saying we could see concrete steps next week, with the mlf, can we see a cut in that front? they are also seeking ways to boost consumption. this came out hours after we saw that ugly, ugly pmi services number. in march, it came down to 42, lowest since february 2020. look at tourism revenue for the last three-day holiday and we have seen those levels go back to 40% of what it was in 2019. shanghai is still in total lockdown. so, that is putting the government's ambitious growth target of 5.5% in doubt. you mentioned the pboc comin

i'm vonnie quinn. this is bloomberg. haslinda: still ahead on bloomberg markets: asia, we are joined by the former japan vice minister of finance for international affairs to discuss whether officials should intervene in the fx markets. but first, the fed's aggressive on fighting inflation. we talked to state street about how hikes will impact emerging markets in asia. keep it here with us. this is bloomberg. ♪ bloomberg. ♪ >> the chinese element of the story. >> china is continuing to be very strict. >> a big policy ever. >> concern is intensifying across the board. >> having a risk-off moment. >> renminbi coming down. >> there could be more downside. >> china is just one of the factors. >> all the cyclical dynamics we are seeing are unprecedented. >> it's very hard to make long calls. >> a big uncertainty. yvonne: some of our guests discussing the global market risks. china, of course he hawkish commentary from the fed remain the key concerns. joining us now with more markets in sizes emily weis, joining us from boston

on vonnie quinn, this is bloomberg. haslinda: still ahead bloomberg markets: asia, with talk to cba about the global supply of grain. president biden says president putin is a war criminal must be held accountable. more on that next. this is bloomberg. ♪ >> you may remember i got criticized for calling put in war criminal. but we have to gather the information. we have to continue to provide ukraine with the weapons they need to continue the fight. and we have to get all the details to have a war crimes trial. we have to get all the details so this can be an actual war crimes trial. the sky is brutal. what is happening in mucha -- bucha is ridiculous. haslinda: that was president biden, escalating the record against vladimir putin. as russian troops stand accused of committing war crimes in ukraine. rishaad: let's bring in our bloomberg opinion columnist who says what is happening in bucha is an event when it comes to tactics in the kremlin. thank you for joining us. this is something, out of brush and you and chechnya,

vonnie: thank you and good morning. hungarian prime minister viktor orban scored a crushing election victory to clinch a fourth consecutive term despite criticism about democratic backsliding, he is a support for ukraine and close ties between him and russian president vladimir putin. he and his party are on track to maintain their two-thirds parliamentary majority. pakistani prime minister imran khan has thrown the country into chaos, calling for a first election after one of his political allies abruptly canceled a no-confidence vote. the deputy minister who is a member of the prime minister's ruling party cited foreign interference. khan then at the president to dissolve parliament, which was approved shortly afterward, a member of sri lanka's ruling party says the cabinet members have submitted resignations, following protests over soaring costs and the foreign exchange crisis. unclear yet whether the prime minister will accept the resignations. sri lankans inflation has accelerated to 19%, with daily power cuts as

over to vonnie quinn with the first word headlines. vonnie: thank you and good morning. the u.n.ecretary general enter new guterres met with russian president vladimir putin in moscow inability to revive diplomatic efforts to end the war, as officials from both russia and ukraine say that talks are at a dead-end. during the u.n. meeting, putin said he's not refusing to negotiate with kyiv. guterres will meet with president zelenskyy on wednesday. >> i am concerned about repeated reports of violations of international humanitarian and human rights law, and possible war crimes. and i require independent investigation for effective accountability. vonnie: lael brainard has been confirmed as the federal reserve vice chair in a 52-43 senate vote. she is the first of four central-bank nominees set for consideration by the chamber. president biden has a fifth nominee, awaiting the hearing by the banking committee. china is set to step up infrastructure investment, following a meeting chaired by president xi jinping. state media is reporting that financial authorities decided to advance

i am vonnie quinn. this is bloomberg. haslinda: still ahead on bloomberg markets: asia, we will gauge the effect of pakistan's political and economic crisis on women. who already face low wages and limited legal protections. human rights activist joins us later. keep it here with us. this is bloomberg. ♪ >> yesterday i returned from our city, recently liberated from russian troops. not far from kyiv, so there is not a single crime that they would not commit there. the russian military's search purposely killed anyone who served our country. >> the french president made it clear yesterday that he wants open that she was open to extensive sanctions. we will see what the position of the other number states will be. but i think that there is a possibility to have unity on these new sanctions and i hope -- the position of other states that we keep the position of the french politicians very clear. haslinda: that was ukrainian president and french finance minister on the latest attacks in ukraine. rishaad: ok. let's find out mo

get you over to vonnie quinn. vonnie: thank you and good morning. russia has barred entry to mark zuckerberg and others in retaliation for u.s. sanctions against top officials and business figures. it says the list also includes kamala harris as well as white house and state department officials. moscow band facebook and instagram last month calling them extremist. leaders from germany have asked french voters not to back marine le pen. all of schultz and others described her as a candidate who openly sides with those who attack freedom and democracy. they say the outcome would be a choice for all of europe. opposition leader's election campaign has been interrupted after he tested positive for covid-19. he will be isolating at home effectively putting him out of action less than two weeks into the campaign. the election is set for may 21. senior chinese officials have pushed back on a set of recommendations for didi global. didi has been in communication about penalties. we understand the agency had aimed to punish the results in april but the gove

let's get to vonnie quinn.akistani prime minister has thrown the country into chaos, calling for a special election after one of his political allies canceled a no-confidence vote. he was a member of the ruling party and cited foreign interference for dropping the motion brought by the opposition. he then asked the president to resolve parliament shortly afterward. and sri lanka's ruling party says the cabinet is calling for resignation. it's unclear if the prime minister will accept the resignations. inflation has accelerated at almost 19%. daily power cuts as long as 13 hours. china added more than 30,000 near covid-19 cases and nearly all of shanghai's residents are under some form of lockdown. the financial hub has emerged as the epicenter of the country's worst virus outbreak since the early days of the pandemic. state media also reported a subtype of the omicron variant, patients with mild symptoms. and a decade long rule has been removed for sharing data, opening up room for u.s. companies. according to

i'm vonnie quinn. this is bloomberg. haidi: as many as 60 people were injured at a subway station in brooklyn. -- as many as 16 people were injured at a subway station in brooklyn. what have we learned so far? reporter: there were calls made to the fire department that smoke was coming out of a train subway car here at 30 six st and sunset park -- 36th street and sunset park station. a shooter had opened a smoke canister in a train car when it was still underneath the ground. when doors opened, as many as 16 people were injured. the shooter has remained at large. and people shot, five critically injured -- 10 people shot, back critically --five critically injured. haidi: what do we know about the security situation and how that has changed? reporter: we should start off with simply the location. for the international audience, this particular station is en route to the manhattan area and wall street area where a lot of commuters from residential areas in brooklyn make their way into manhattan. and essentially the financi

vonnie quinn. >> the u.s. economy shrank in the first quarter. gdp declined at 1.4% following a 6.9% pace of growth last year. economist had seen a 1% increase. it was due to a ballooning trade deficit and less robust consumer spending. the commerce secretary said it is not a trend. >> you look at small business starts, they are higher than ever. wages are up. i talked with ceos about their businesses. the economy is resilient and growing, so obviously you don't want to see this, you know, it is disappointing and you never want to see it, but we were not surprise and i do not think it is a trend. >> janet yellen is defending the administration's $1.9 trillion budget and spending package criticized for helping fuel the highest inflation in 40 years. his 2021 rescue plan came on the heels of two major packages in 2020 totaling almost $3 trillion. janet yellen says the program played a key role in driving growth throughout last year. turkey could offer funding with a guaranteed 4% return to foreign investors want to park their money for two years. s

i am vonnie quinn. this is bloomberg. shery: still ahead, we discussed how the lockdowns in china have impacted tesla's supply chains, and the road ahead after earnings that beat estimates. but next, global investment firm aberdeen says energy and metal stocks are still attractive. this is bloomberg. ♪ is bloomberg. ♪ >> i see an expeditious march to neutral by the end of the year as the current path. >> the ideas we are going to have to move the path because the inflation is much higher than they were dealing with in 2019. but they will bring it back down. they will come up and back down if they have to. so yes, they will have to move higher than what people may feel a short-term rate is what economists believe and i think their data shows it. shery: the bank of america ceo and san francisco fed president mary daly. our next guest expects equities to outperform bonds. joining us is ray sharma-ong. ray, good to have you with us. we have seen more money managers seeing some opportunities in the bond spac

i'm vonnie quinn. this is bloomberg.ry: coming up, we take a look at what is in store for south korea's energy transition under the next stray should. this is bloomberg. ♪ haidi: take a look at commodities -- natural gas moving toward the eight dollar level which it surpassed at one point in chicago trading, the first time since 2008. supply concerns being felt across markets and sending prices to a 13 year high. same issue with oil, under a little pressure after surpassing $108 a barrel earlier in the new york session. libya closing an oil field that sent prices higher. corn also toward a record high. gold at the moment under a little pressure around a five-week high. a lot of safe haven demand for those commodity prices leading to inflation concerns, not to mention a risk of recession. iron ore surging to an eight month high because we had seen economic data out of china not being very strong and we had met -- we had bets about policy makers in beijing and we see mixed moves in the commodity space right now. haidi: sou

vonnie: thank you and good morning. china is defending its covid zero policy, saying it is based on science and is effective. this, after the u.s. allowed counselors to leave shanghai and urged americans to reconsider traveling to the country. shanghai reported a record of almost 2500 infections saturday, and the city has been in lockdown for more than a week. pakistani lawmakers are set to vote for their next prime minister after imran khan was ousted. his four-year run ended sunday when united opposition gather the votes necessary to remove him from office. the opposition leader is the front runner to become pakistan's next prime minister. the imf will hold topsail sri lanka about a possible laon == friday, the central bank raised interest rates to cool soaring inflation. sri lanka's president has been struggling to form an interim government after his cabinet resigned. the fed -- she cites supply chain disruptions, partially due to covid restrictions in china. mester however says the u.s. will review -- will avoid a

i am vonnie quinn.berg. ♪ haidi: this seven about fund is betting on health care investments to help question it from inflation that is eating into longer-term returns. its managing director told us exclusively that rising prices remains the biggest risk, along with how central banks deal with it. >> we are hugely exposed, 60% or 70%. first of all we have to see how we can actually create value, value-creation of mach 2 these companies, to see whether they can have sustainable growth going forward. you can only achieve that in this current environment, where you need more productivity, more shifting to improving the cost structures, as well as the service quality of what we have. so it is really the investments that we have been our portfolio that we will try to achieve. >> as it stands right now, china is still investable. it is a debate about whether china is or not. >> has a long-term investor, you cannot ignore china. we are exposed to china, and that is something that i truly believe will -- it is

i'm vonnie quinn. this is bloomberg.linda: the rebranded parent company of budget airline air asia is accelerated plants to become the travel platform in southeast asia. it is tied up with google cloud to advance offering on-demand services. joining us is the ceo, tony fernandez. talk to us about this collaboration. what tech talent, engineering talent are you trying to get from google cloud? what kind of data analytics are you after? >> it has been a big week for us to get this deal from google to kind of see the potential to be one of the best in southeast asia. an important milestone for us. it is all about firstly getting the necessary tech support to make our app as good as any app in terms of user experience in the data analytics is a large part. -- and of the data analytics is a large part. the map technology is a big part. games is something we are looking at. on top of the messaging services. we want much more community driven so our cost of customer acquisition is much longer. a really big day for us to get the

i'm vonnie quinn. this is bloomberg. haslinda: still ahead on bloomberg markets: asia, we discuss the escalating crisis in sri lanka where the president has defied calls to resign. plus, the treasury department on the first round of sanctions on the airlines. this is bloomberg. ♪ >> just in one year, our sanctions are lucky to wipe out the last 15 years of russia's economic gains. because we have cut rush off from importing technologies like semi conductors and encryption security and critical components and quantum technology they need to compete on what we are going to stifle russia's ability as an economy to grow for years to come. at >> this critical point in the war, we must increase the pressure on putin and the russian government. this is why we propose to tighten our sanctions further. we impose an import ban on coal from russia worth 4 billion euros a year. haslinda: that was president biden and of the president of the european commission calling for more sanctions against russia for its alleged war crimes. rish

i'm vonnie quinn. this is bloomberg. shery: still ahead, emmanuel macron wins a second term as french president. we will discuss how voters were influenced by the war in ukraine. plus the u.s. economic cycle shows signs of peaking despite talks of a possible recession. it seduction on that is just ahead. this is bloomberg. ♪ is is bloomberg. ♪ shery: it will be a mega week for earnings with hundreds of results due over the next few days. let's take a look at your week ahead. investors scrutiny on big tech will only intensify after last week's shock this appointment from netflix. we will get updates from the likes of apple, microsoft and alphabet. attention also on european banks after a mixed bag of results, with focus on how ubs and barclays are navigating the war in ukraine. big oil earnings are also set to reflect the impact from the conflict, and more than 500 chinese companies are due to report this week amid the covid lockdowns in major cities. paul: it is going to be another busy week on the data front as well. gr

let's now get to vonnie quinn with the first word headlines. vonnie: the u.s. trade chief says washington wants to realign its commercial ties with china rather than seek a divorce. katherine tai oldest exclusively the biden administration's policy has been focused on realignment in the global economy. she says the aim is to address the lack of visibility, accountability, and diversity in supply chains. >> i would focus really on the kinds of changes we are trying to bring, which are really not about stopping trade, or trade divorce. they are really about bringing reform and more strategic approach to trade. vonnie: pakistan's supreme court has deferred a decision on the legality of the prime minister's this vision to dissolve parliament and call early elections. its chief justice has told lawyers to conclude their arguments by wednesday so the panel can hand down its verdict, although no date has been set for a ruling to be announced. sri lanka's president has revoked emergency rule within days of imposing it. the order had given him sweeping powers to seize p

i am vonnie quinn. this is bloomberg. shery. shery: still ahead, we will discuss opportunities in energy tourism and trade as economies emerge from the pandemic. western australia's deputy premier joins us later this hour. first, a recession may be looming. not all downturns are equal and there could be opportunities ahead. this is bloomberg. ♪ >> we do not have a policy rule for everything. we don't have one for every industry. it's a very brute force hammer that we use on the economy. when you have to use a brute force tool, sometimes there is some collateral damage that happens. we are trying to do this in a way that there is not much of it. you cannot taylor policy. shery: christopher -- tailor policy. shery: christopher waller. we continue to see the bond space really reacting with that rout continuing. the australian 10 year yield topping 3% for the first time since 2015. we are seeing the kiwi 10 year yield continuing to rise to that teen high end of hours, the 10 year yield here in the u.s., treasuries above to 75 for th

let's get to your first word headlines with vonnie quinn. vonnie: the u.s. is sending ukraine $800 million worth of new military hardware. president biden announced this on wednesday after a phone call. the package includes heavy artillery systems and armored personnel characters. more intense military command after earlier shipment of defensive weaponry. new york city law enforcement officials arrested frank james in manhattan in connection with tuesday's shooting at a brooklyn subway station that entered more than two dozen people. james faces a federal terrorism charge and could face up to life in prison if convicted. the arrest cap a dramatic manhunt that stretched nearly 30 hours. sri lanka has been downgraded. the nation's decision to suspend payments on foreign debt has complicated the process. sri lanka's long-term currency is one step above default. earlier, they lowered the country to the third lowest level. as wide spread legal and social unrest continues. u.s. treasury secretary janet yellen has called meetings to account for the relationship wit

. ♪ haslinda: this is -- vonnie: this is "bloomberg markets: asia."'m vonnie quin with the first word headlines. -- identified the suspect in a subway attack that left at least 10 people with bullet wounds during the morning rush hour. kriti gupta has more from the scene. >> tuesday morning in brooklyn, new york, a gunman opened fire in a subway station after releasing two smoke canisters, injuring 23 people, including 10 with a gunshot wound. luckily, no fatalities. authorities found a nine millimeter handgun, two on detonated smoker needs, and a hatchet among other items. the police department identified a person of interest based on keys to a rented u-haul van. the manhunt is ongoing. kriti gupta, bloomberg, new york. haslinda: and we speak with new york city's mayor later at 845 a.m. wednesday in new york, 8:45 p.m. in hong kong. the world's top independent oil trader intends to completely stop transactions involving russian origin crude and products by the end of this year. they say volumes will diminish significantly in the second quarter before

i'm vonnie quinn. this is bloomberg. >> still ahead on bloomberg markets: asia, we discuss the impact of rising real rates and what it means for metals. traders brace for a more hawkish fed. plus, chinese officials push on a set of proposed punishments for didi. more on that scoop coming up next. this is bloomberg. ♪ yvonne: all right, take a look at your asia tech index we are following for a fourth straight session. you are seeing mostly lower for the most part. on a lot of the delisting concerns with dd after it dropped overnight quite substantially on the bloomberg scoop. the fate of the ride-hailing giant and further limbo when it comes to talking about the penalties involved. bloomberg has learned senior chinese officials have rejected the proposed penalties on the company stemming from a lengthy cybersecurity investigation. let's bring in our asia tech executive editor. peter, what is the situation surrounding it? the top watchdog still thinks the penalties do not go far enough? >> this is anoth

but vonny, is it more deep rooted than simply the failures of this government? is it also a convergence of other factors that perhaps are outside the government's control? like, let's not forget the collapse in commodity prices. the economic fall out of the pandemic locked downs, the 70 percent fall in tourism after the 2019 bombings, the rising cost of fuel because of the war and ukraine and so on, so forth. for semi i think that my combination but add beats roman. i mean we, i and christ, the board. the main reason why we have these crises is purely due to the mismanagement of the government. yes. there are there ethan. but the government had an indicator that we were heading down the direction they could advocate, can let me jump in here. i'm going to try and play devil's advocate to present the governments effective. what more could the government have done the, when they've got all those other faxes that i mentioned going on from a war in ukraine, the pandemic, the collapse in commodity prices? i mean, is there a limit to how much you can wave that magic wa

i'm vonnie quinn. this is bloomberg. haslinda: still ahead, sri lanka's main opposition party is taking steps to initiate impeachment proceedings against the president. we find out more from its leader. next, our interview with carmen reinhart about the decision to slash its global growth outlook. this is bloomberg. ♪ s is bloomberg. ♪ haslinda: markets in hong kong and china under pressure. hstech in particular down about 4% on the back of didi mulling a delisting in the u.s. now, the world bank has this 2022 global growth outlook on russia's invasion of ukraine. senior vice president and chief economist carmen reinhart spoke to bloomberg about the report and what actions the world bank could take. carmen: a rate of disruptions from china's new lockdowns, from the impacts yet to be fully felt of the russia ukraine war on food prices, on global supply chains. and is bad came to worse, could there be another episode of financial contagion? all of these are risks on the downside. what will it be cut again? you know, certai

let's get you the first word headlines with vonnie quinn. vonnie: thank you and good morning.ill hwang has been arrested a year after the collapse of the family office. prosecutors say he was behind a vast criminal scheme to manipulate banks and markets. he has pleaded not guilty to charges of fraud and will be released on bond of $100 million. european commission president ursula von der leyen is warning companies not to give in to demands to pay for gas with rubles. european banks are responding after russia cut off gas to poland and hungary a. >> our guidance here is very clear, to pay in rubles. if this is not forcing in the contract, to pay in rubles is a breach of our sanctions. companies with such contracts should not accede to russian demands. bonnie: the government's tough response has threatened economic growth. it was agreed more forceful policy measures should be taken to boost jobs according to state media. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts from more than 120 countries. shery: still ahe

i'm vonnie quinn. this is bloomberg. shery: still ahead, president biden vowed sanctions on russia will stifle its economy in that the war could continue for a long time. we will discuss with georgetown university. economic forecasts could be wishful thinking. more on that with aegon asset management. this is bloomberg. ♪ >> big slide from the bond market. >> starting to respond. >> a frothy patch. >> this is market to be adjusting to a faster pace. >> having brainerd reno rate the fact that they want to move quickly. >> they are trying hard to get a soft landing and retain inflation credibility. >> eric investment is being followed. >> moving into that phase. >> the balance sheet is going to be an important tool. >> the fed may not have to raise rates significantly above neutral. >> we are inside the uncharted waters. >> does inflation decelerate? >> this is an extra problem investors are having to grapple with. >> that is causing volatility and volatility in the bond markets means other people cannot hold one markets.

let's get to vonnie quinn. vonnie: rates will be raised to a level that neither stimulates. sheet could come as soon as may which could lead to reduction starting in june. consumer prices rose in march putting more pressure on the fed to ask. president biden is said to be seriously considering a veteran as the chief banking advisor. he was an architect and has emerged for a leading contender. this is a nominee that canopies the progressive wings. boris johnson is the first u.k. prime minister in modern times who becomes guilty of breaking the law. he said he paid a fine for breaching coronavirus lockdown rules. he apologized for the scandal and maintained he knew the gathering british rules. -- breached rules. >> it did not occur to me this might have been a breach of rules. i fully respect the outcome of their investigation. i offer a full apology. vonnie: in february, 36% of candidates said the average pass rate was about 41% and only 19,000 candidates pass the exam in february. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journa

i am vonnie quinn. this is bloomberg. haslinda: still to come, travel tech platform hotel planner joins us to discuss the outlook of southeast asia tourism and hospitality sectors, as several companies -- countries reopen their borders. first, a possible push for new sanctions from russia. reports that troops executed unarmed civilians in ukraine. this is bloomberg. ♪ this is bloomberg. ♪ >> we also made very clear that china should, if not support, at least not interfere with our sanctions. so a prolongation of the war and the disruptions it brings to the world economy is therefore in no one's interest, certainly not in china's. >> we call on china to help end the war in ukraine. china cannot turn a blind eywe -- eye to russia's war. these principles are enshrined in the charter, principles sacred to china. >> even europe has been conducting your normal business with russians. you have not stopped all your trading with russians. so, our normal trade with moscow should not be affected. haslinda: chinese and european offic

bah, vonny. well, it needs to be more than so by me because i think be brought to a situation. it's not just a family or a particular government, and this is why it's so important for the government. but opposition for all state court is to come on what we think the president will have down and resign. well that, that's up to the president, but there's a lot of pressure beauty even today, beside the curfew. people on the streets calling for his resignation for the family to leave a considerable, significant, high anger among the people for the me see not that the country be konami, the political situation by one family. and i think that needs to be very clear, please. on the government, but clearly the president and the family and by one person cannot address is the law. and that's why keep coming back to the needs to be systems in place and needs to be structured. otherwise, we're not going to be able to address these problem. all right, we'll leave it on friday. we are out of time, but it's been a great chat. let's thank con, guess how should the silver vonny fonseca and w wa

i'm vonnie quinn. this is bloomberg. rishaad: thanks. lockdowns of china threatening to disrupt global supply chains once again. we had those purchasing managers coming in with worse than anticipated across the board. let's bring in hang seng china chief economist. thank you for joining us. we had morgan stanley downgrading the 2022 china growth forecast to 4.6%. will you be changing yours as well, and indeed, what are you making of it all? >> the drop in pmi is largely expected because we have seen this ongoing ukraine war driving up prices for raw materials and commodities, even before the current round of covert control. there are many factories along china's coast that have at least partially halted production, and then the resurgence of covid in many cities has suppressed pmi, so i have not really downgraded our forecast of this year's gdp yet. it looks like most of the impact from covid control is regional. shanghai's economy is hugely disrupted. it is port is also disruptive, but a lot of that capacity can be shifted to other plac

i'm vonnie quin, this is bloomberg. recapping what we are seeing when it comes to bond markets. new zealand yields heading lower. even after we saw the 50 basis point hike. the key thing is they kept the policy rate outlook. it looks like for the most part, it can be a basis point hike -- if you are wondering if they are getting started, there's a lot of front loading on more than them adding to the total numbers it can go. it goes to show the fed can follow with the 50 basis point hike soon, as well. but yields are tumbling. haslinda: that is right. turning to sri lanka, it is warning of an unprecedented default and halted payments of foreign debt. and extraordinary debt to support a dwindling dollar stockpile for essential food and fuel imports. let's find out more from bloomberg's chief asia economics correspondent. this has been called a move of last resort. what is the significance of this move? >> it reflects the reality on the ground. the reserves are dwindling below $2 billion. they need to preserve it to pay fo

let's get to the first word news with vonnie quinn. vonnie: thank you.zy with $7 billion of assets. he was sentenced by the eu and u.k. last month. representatives did not respond to requests for comment. janet yellen is calling beijing to account for its relationship with moscow. she criticized china for practices that she says unfairly damage the national security and she's worn beijing to help end russia's worn ukraine her face a loss of standing in the world. >> the world's attitude towards china will embrace further economic integration. it will be affected by china's reaction to our call for action in russia. vonnie: chris willard says the u.s. economy can handle aggressive policy tightening. he told cnbc that he prefers to frontload future rate hikes with the aim of getting the key rate above neutral by the second half of the year. the neutral rate lines around 2.4%. china's central bank is expected to take steps to ease policy in the coming days. a survey shows the colonists expect the key policy rate on friday. it's expected to reduce the reserv

i'm vonnie quinn. this is bloomberg. shery: still ahead, our conversation with the ceo, sharing how the hot spring resort operator is coping with the country's continued closure to tourists. first, money markets are pricing in 200 basis points of fed tightening by september. we will analyze the impact on asian bonds with alliancebernstein. this is bloomberg. ♪ this is bloomberg. ♪ >> the fed is concerned about inflation. we have made clear that we will be moving accommodation to try and get it under control. but i know they will try to achieve a soft landing. and with some skill and some luck, we will have a very good year for the u.s. economy in terms of the job market this coming year. shery: u.s. treasury secretary janet yellen to bloomberg money markets pricing in 200 basis points of fed tightening by september. our next guest says asian high-yield debt historically outperforms aggressing -- investment grade. let's discuss more with jenny zeng from alliancebernstein. good to have the with us. if you want to get into

i am vonnie quinn. this as bloomberg. shery: still ahead, we discussed the bear market for bonds as a repricing of expectations creates the worst treasury selloff in more than two decades. up next, alphasimplex says equity markets are in limbo giving mixed signals about where they are headed. we discuss how to navigate that ahead. this is bloomberg. ♪this is bloomberg. ♪ >> it husband -- yields have climbed so quickly. demand for bonds is evaporating quickly. >> a huge selloff in the bond market. >> speed is a problem for equities. >> the job of orchestrating a soft landing. >> it is going to require some fancy footwork from the fed. >> growth is slowing. >> equities and fixed income are struggling. >> the fed's path to the soft landing has narrowed. >> it is unlikely we can avoid a harder landing. shery: some of our guests from bloomberg television. our next guest says equity market is in limbo and there are mixed signals about where they are heading. with us now is katy kaminski. a portfolio manager at alphasimplex grou