Caroline, Brussels, Baxter discussed on Bloomberg Daybreak Europe


This is Bloomberg daybreak Europe We will continue on a remorseless mission to squeeze Russia from the global economy peace by piece day by day and week by week We're dealing with an individual who doesn't play by the rules So I've always been very clear by the fact that although he goes so far It is indeed a very dangerous moment It is basically the rewriting of these Jordan system that we've known in Europe since the end of the Cold War Bloomberg daybreak Europe on Bloomberg radio And a very good morning And I'm Caroline had good welcome to daybreak Europe this morning so we continue to cover the war in Ukraine the NATO defense ministers are meeting today but also there are other important matters for markets including the fed rate decision 6 p.m. expecting the first rate hike for the U.S. since 2018 of course And then the big news out of China talking about adopting effective policies to handle the risk from developers promising market stability and increase in economic growth These are big pledges at a big moment of geopolitical risk so we'll discuss an unpack that in just a moment Let's go then to the markets on that note because those lines from China's State Council have meant a significant run up in stocks the hang seng jumping 8.6% this morning The MSCI Asia Pacific index are by 3.1% Futures are also soaring U.S. city futures up more than 2% now NASDAQ features gaining 1% They're also some lines of course around what China would do to support listings abroad ADRs that are traded overseas Having said that big warrior round stagflation strategists are cutting their targets for European equity markets this year as for bond markets U.S. yields at two 18 up by three and a half basis points this morning other big stories to think about in the oil markets giving up most of the gains after Russia's initial invasion of Ukraine So Brent trades at a $102 the bow this morning WTI prudent $98 this morning and just to Bloomberg dollar spot index down two tenths of 1% So those are the markets we're watching Let's get more details with our markets live editor Nor Al Ali Hi no thanks for joining us The China tech crackdown then is that over We've had a lot of different statements from the State Council in China Yeah absolutely I mean what a turnaround that we've seen today And I think this is precisely the moment that the market has been waiting for Because investor mindset when they enter China very different You don't go in and out as you would with U.S. stocks or European stocks It's more of a it's one of the position that you take in the market and you decide where you're going to park your money there So far this year or even the last year we've seen that stocks have really been struggling particularly types And properties as well And these values that we've gotten from the attorney's government are the strongest Yeah I mean there's a little bit for everyone There's something for the tech crackdown There's something for stock The property crisis overseas things in U.S. ADRs I think you know this is a really wonderful moment for the Chinese market and equities at the moment But I think it's worth also keeping in mind that perhaps some context is relevant because the maximum drawdown for instance for the Hanks tech index was at about 68% before the intervention now it's just down to 62 So we need a much much more impressive rally for us to get back to the highs that we've seen last year So we're far away from that But this is a fantastic starting point for the market Okay So then what is the market thinking about when it comes to the FOMC nor Because poised to raise interest rates but then how hard can the fed really go Given the risks to growth Yeah I mean a lot of people have been thinking about whether or not Central Bank and policymakers have been behind the curve when it comes to raising rates I mean the stock is now raising rates in the market where growth is significantly going to be special particularly with the Russia war We still don't know just how badly growth is going to be hit you also have China in the COVID situation there we really don't know to what extent all of these compounding effects are going to have an impact on this quarter or in the past And now you've got this bed raising rates potentially behind the curve You know I'm still a big believer that the fed will try as much as it can to tame inflation but what it's close to 8% now world is a bit difficult You know I think we're going to need very strong commitments just those things of China from the fed to get the market more excited but it's definitely a big day for market today Okay It is Thank you so much and all for being with us then That is our markets live editor nor Al Ali for your time market comedy and analysis Check out markets live ML IV on your Bloomberg term law Okay let's get to some of today's top stories then He's been mostly Anne Gary's good morning Good morning Caroline and thank you as the war enters its 21st day negotiations between Russia and Ukraine resume later in aid to Ukraine's president Vladimir zelensky said the situation remains difficult but there is room for compromise earlier his Russian counterpart Vladimir Putin said Ukraine is not being serious about resolving the war elsewhere China has pushed back against what it is calling disinformation about its role in the lead up to the invasion The countries U.S. ambassador is denying Beijing had prior knowledge Meanwhile U.S. president Joe Biden is traveling to Brussels next week to meet NATO and attend European Union meetings to discuss the war The trip will be Biden's first to Europe since Russia did invade Ukraine NATO's secretary general Jens Stoltenberg has arranged an extraordinary summit of member nations and also warned Russia could use chemical weapons They are making absurd claims about biological labs and chemical weapons in Ukraine This is just another lie And we are concerned that Moscow could stage a false flag operation possibly including chemical weapons Meanwhile Ukrainian president Vladimir zelensky is encouraging more European leaders to visit Kyiv after the prime ministers of Poland Slovenia and the Czech Republic did a travel to the city yesterday On the ground in Ukraine the mayor of key vitali Klitschko was an Elsa 35 hour curfew confining people to their homes That's after Russian air strikes killed 5 people Meanwhile president Joe Biden is expected to announce more than $1 billion in Ukraine military aid later today Bloomberg's Ed Baxter has more This will come from the 13.6 billion in aid that was passed by Congress and will provide anti armor and anti air systems that include javelins and stingers as well as Secretary of State Antony Blinken as saying it will complement the humanitarian aid already being sent This comes as Ukraine's president volodymyr zelensky is scheduled to address Congress today Yesterday he delineated the horror being felt in this country to Canada's parliament In San Francisco I met Baxter Bloomberg daybreak Europe And Boris Johnson has arrived in the gulf where he will have talks with leaders aimed at ending what he calls the west's addiction to Russian oil and gas Bloomberg's chose capel reports Johnson will.

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