crackdown is not over yet. they may be caught up in further scrutiny. yvonne: at the top of the hour is the un security council holding that emergency meeting this evening that we are tracking here to see what goes on. how will they try and respond to the ukraine situation right now? there are five countries that do have that veto power. china, france, u.k., the u.s., and russia. so, in terms of expectations of what is tangible, it seems unlikely, being russia is chairing the meeting this month. haslinda: that's right. those sanctions may be in question, so it will be quite difficult with those five veto countries. taking a look at markets, we have investors pretty much preoccupied with the prospects

of that war in ukraine. and that is understandable given that could disrupt the flow of trade and that could disrupt key supplies, the likes of oil, nickel, and wheater -- and wheat. don't forget asian companies rely on russia for oil. global companies are also looking at russia as a global -- as a growth market. the fallout could be greatly impacting the rest of the world. take a look at the benchmarks, not surprising ag -- asian benchmarks are negative. it's a tech story in hong kong. we will get that slightly later. weakness across the board but the yen getting bit up. a haven play.

brent crude, wti crude being bit up. $97.08, inching ever closer to the $100 mark. the bond market, yields falling. when it comes to the bond market we are keeping a close watch on the futures. treasury futures are joining the ranks off the holiday. take a look at hstech. the lowest level since its inception. concerns about a clamp down from china wanting clarity from companies about their exposure to jack ma's ant group. under a lot of pressure today. yvonne: you have tencent, alibaba, the biggest drags on the hang seng this morning. you take a look at where treasuries are. we're way past 2%, given this flight to safety when it comes to the likes of treasuries. u.s. futures deeply in the red. close to 2% lower.

the european session could look about the same according to where futures hold at the moment. and as you mentioned the likes of the havens and the swiss franc, the japanese yen, even gold catching a bid. seems like it is a very classic sort of risk off and investors still try to price this all in. haslinda: a key question for markets is how tensions over ukraine would affect fed policies. does seem like ukraine pricing out a hawkish fed. remember as well we have a sell up in the equity markets. we have confidence among is this is falling. that is already leading to a tightening financial conditions. it begs the question, does the fed really need to be hawkish. but bear in mind the inflation report is a key indicator for the fed. that is coming out later this week.

we heard from one fed official that believes 50 is still on the table if inflation remains hot. yvonne: yep. commodities is where you are seeing most of the movement when it comes to at least seeing green on the screen. oil, about $2 to 4# away from $100 oil. aluminum as well. jumping the highest since 2008 on these ukraine tensions. gas is up. nickel is also quite elevated. gold just above the 1900 level right now. let's bring you back to live pictures with the un security council meeting. after the russian president recognized the two separatist areas in the eastern part of the country in order for troops to move into these so-called peacekeeping efforts. >> i consider it necessary to take a long overdue decision to immediately recognize the

independence and sovereignty of the people's republic. i'm asking the federal assembly of the russian federation to support this decision and rectify treaties of friendship and mutual assistance with both republics. we demand for those who took over to immediately stop combat activity. otherwise the responsibility for continuing the bloodshed will lay on the shoulders of the ukrainian regime. yvonne: they also say they will be imposing sanctions. let's bring in bruce einhorn who has been tracking all the developments. can we expect much from this un security council meeting? what will be the west's response to what we have heard the last 24 hours? bruce: as you pointed out earlier, russia has a veto on the security council. so, in short, no, nothing is going to come out of this meeting. i think it is going to be

interesting to see what we hear from china at this meeting. china has a strong trade relationship with china. vladimir putin went to beijing for the opening of the olympics. met with president xi jinping. the two sides have gotten very close. what will china say at the security council meeting about what russia is doing in ukraine? i think that will be one of the most interesting things that will come out of that meeting. as far as what we should expect from the west, of course at the security council meeting there will be done on see several russia. as far as concrete

sanctions. that will happen today. the eu is looking into sanctions. the u.s. has imposed limited sanctions affecting the specific regions that russia has just recognized as independent. not yet initiated the broad sanctions that president biden and other western leaders have warned are coming if russia were to further invade ukraine. but if russia does move ahead and move what it calls peacekeeping troops into these regions, then those sanctions might be forthcoming soon. haslinda: bruce, is there still a chance of a diplomatic resolution? where is that at right now? bruce: well, it does not look like there is much room, at least this is what we are hearing from some of the leaders who are really right on the forefront of this. countries that used to be either part of the soviet union itself or were soviet satellites during the cold war. for instance the prime minister of estonia issued a statement

saying this move from russia shuts the door on diplomacy and creates an excuse for war. there was a statement, russia has contempt for international law. the czech minister says the need -- the world needs to understand ukraine is not just the russian chessboard, we are. so there's no hope at all at this point for diplomacy. haslinda: bruce. thank you. let's discuss the impact on energy market with director of asia oil. thank you for joining us. just wondering, oil inching closer to $100 a barrel. can it stay there sustainably? we have some saying yes, at least over six to nine months. >> thank you. i think the oil market will

continue to be on a knife's edge over the next few edge. if tensions escalate on the russia front, we will see prices of $100 very quickly. it even has an upside of $10 a barrel if we see more sanctions being placed on russian oil exports. yvonne: if it does get to $100 a barrel, what will the next level be? sri: currently, we think there should be an easy upside of $10 a barrel if sanctions come into place. the export close to $7 billion of oil. we do not think all that will be out, but clearly a lot of countries that are shying from buying russian barrels, especially europe, considering the fact sanctions might come into play soon.

if the situation escalates and if we continue to see less russian barrels coming out of the market, a $10 upside is a given. but it's very difficult to predict what will happen in the next two weeks. we are not really concluding that. -- that we will be going into a full-blown war situation yet. yvonne: hold that thought. we have to go to live pictures in new york. we are hearing from the u.n. undersecretary speaking right now. >> -- including 926 explosions, and 2158 cease-fire violations, including 1100 explosions in another region. we remind all involved of their responsibility under international humanitarian law and human rights law.

although the united nations is not in a position to verify the numerous claims and allegations made by various actors, we are deeply concerned about the reports of civilian casualties, targeting of civilian infrastructure, and ongoing evacuations. mr. president, we're extremely concerned about the possible implications of these latest developments for the existing negotiation frameworks. amid the current risks and uncertainty, it is even more important to pursue dialogue. negotiation is the only way to address the existing differences among the key actors regarding regional security issues, and the settlement of the conflict in eastern ukraine in accordance with security council resolution 2202. before the current already

dangerous conditions escalate further, we call on all relevant actors to focus their efforts on immediate secession of hostilities. civilians and civilian infrastructure must be protected, and actions and statements that may worsen the situation must be avoided. over the past few weeks, key actors have been engaged in intense diplomatic efforts to avert new erosion of conflict in the heart of europe. the secretary-general fully supports these efforts and has deplored even the possibility that a new conflict could break out. mr. president, we are committed to our long-term partnership with ukraine, a founding member of the united nations. as it continues to pursue the democratically formed agenda 30 years after independence. and once again, we reiterate the

full commitment of the united nations to the sovereignty, independence, and territorial independent -- integrity of ukraine within its internationally recognized borders according to general assembly resolutions. throughout the eight years of conflict in eastern ukraine, the united nations has continued to provide lifesaving humanitarian support to all in need. as well as human rights elated work. during this difficult period, we're committed to stay and deliver and remain fully operational in ukraine, including in the two regions. the safety and security of our staff must respected by all parties. mr. president, the next hours and days will be critical. the risk of major conflict israel and needs to be prevented at all costs. i can assure you of the full commitment of the

secretary-general to work towards a diplomatic resolution of the current crisis. thank you, mr. president. >> we now go to councilmembers who wish to make statements. yvonne: that was the one undersecretary general kicking off this emergency meeting happening in new york would and then the yuan security council. the headline take away is that the u.n. is calling for immediate cessation of hostilities in ukraine. negotiation she said is the only solution here to try and resolve the situation in ukraine at the moment. you see the united states speaking at this moment. and certainly there is still a lot of questions about what could come out of this meeting. but let's listen in more from the u.s. >> -- independent states, the so-called dpr and lpr regions,

the sovereign territory of ukraine, and areas controlled by russia's proxy since 2014. he has since announced he will place russian troops in these regions. he calls them peacekeepers. this is nonsense. we know what they really are. in doing so, he has put before the world a choice. we must meet the moment and we must not look away. history tells us that looking the other way in the face of such hostility will be a far more costly task. rushers clear attack on ukraine's sovereignty and territory is unprovoked. it is an attack on ukraine's status as a u.n. member states. it violates a basic principle of international law and it defies our charter. what is more, this move by president putin is clearly the

basis for russia's attempt to create a pretext for a further invasion of ukraine. the consequences of this action will be felt far beyond ukraine's borders. we do not have to guess at president putin's motives. today, president putin made a series of outrageous, false claims about ukraine aimed at creating a pretext for war. and immediately thereafter, announced russian troops are entering the donbas. he claimed that ukraine is seeking nuclear weapons from the west. this is not true. ukraine is in fact one of only four countries to have voluntarily surrendered their nuclear weapons. the united states and our allies have no intention of supplying nuclear weapons to ukraine, and ukraine does not want them. and then president putin

asserted that russia today has a rightful claim to all territories. all territories from the russian empire. the same russian empire from before the soviet union. from over 100 years ago. that includes all of ukraine. includes finland. it includes belarus and georgia and melt over. -- and maldova. kazakhstan, turkmenistan, uzbekistan, and lithuania. latvia and estonia. it includes parts of poland and turkey. in essense, putin wants the world to travel back in time, to a time before the united nations. but the rest of the world has moved forward. it is not 1919. it's 2022. the united nations was founded on the principle of decolonization, not

recolonization. and we believe the vast majority of u.n. member states and the un security council are committed to moving forward, not going back in time. the consequences of russia's actions will be dire. across ukraine, across europe, and across the globe. in our past two meetings on ukraine, i mentioned nearly 3 million ukrainians will need food, shelter, and lifesaving assistance right now. the u.n. estimates that humanitarian toll will expand significantly should russia further invade. already trucks and -- russian proxies have killed ukrainian civilians and soldiers. if russia invades ukraine even further, we will see a devastating loss of life,

unimaginable suffering, millions of displaced people will create a refugee crisis across europe. nevertheless, russia has declined repeated entries to state its intentions before the world, including by secretary blinken in the security council last thursday. colleagues, president putin is testing our international system. he is testing our resolve and seeing just how far he can push us all. he wants to demonstrate that through force, he can make a farce of the u.n. we must act together in response to this crisis. over the past few weeks, the world has heard the other 14 members of the security council speak with one voice asking russia to pursue diplomacy. other members of this council, even those who often align with russia on other matters, have been clear that the sovereignty,

independence, and territorial integrity of every u.n. member states should be respected and safeguarded, including ukraine. that this is a basic norm of international relations and that it embodies the purpose of the u.n. charter. the sequence of events that secretary blinken spelled out for this council last thursday appear to be proceeding exactly as he predicted. today, president putin has torn the minsk agreement to shreds. we have been clear that we do not believe he will stop at that. in light of president putin's latest actions, we must all stand up to the principles upon which this organization was founded. president biden issued an executive order today that will prohibit new investment, trade, and financing in the so-called

vpr and lpr regions. tomorrow, the united states will take further measures to hold russia accountable for this clear violation of international law and ukraine's sovereignty and territorial integrity. but we and our partners have been clear that there will be a swift and severe response were russia to further invade ukraine. in this moment, noone can stand on the sidelines. we must make it clear that an attack on ukraine is an attack on the sovereignty of every u.n. member states and the u.n. charter, and that it will be met with swift and severe consequences. we continue to believe that the diplomatic table is the only place where responsible nations resolve the differences. that is the only place to preserve peace. thank you, mr. president.

>> i think the representative of the united states for their statement. i give the floor to the representative of all banning. -- of albania. >> thank you. albania condemns in the strongest terms the russian decision to recognize nongovernment controlled areas. this is a breach of international -- yvonne: you just heard from the u.s. ambassador to the u.n. speaking to the rotating president of the un security council, which quite timely is the russian ambassador to the u.n. talking about this is not 1919, this is 2022. russia cannot go back in time. essentially saying to vladimir putin, he's turned the minsk agreement to shreds.

they do not believe that putin will stop at that. that's the latest lawn crossing from the u.s. side of things. we will see if the chinese ambassador, how he balances out his support for vladimir putin along with of course trying to maintain that regional stability. let's bring back our guest, sri. as you are listening to all of this i have to wonder when it comes to the market impact, it is quite remarkable what we are seeing. the moves in not just oil, commodities and the like. why do you think ukraine is different in this context? sri: it's not about ukraine, it is about russia. as i highlighted before, we're talking about 7 million barrels a day of exports from russia.

clearly for the oil market this is very important. that is why sentiment is continuing to drag prices. i think we will continue to be in this situation for a while. unless we see a diplomatic resolution coming. yvonne: we see this across oil markets right now. what could actually change this picture then? will production step up first, or is demand going to have to be destroyed, given that we could be staying at these levels for some time? sri: both will not happen overnight. we both know there will be a lag for production to increase. the one other issue which has been swept under the carpet for the last few days is the deal. this is something that can change the equation a bit.

the markets are not pricing this at all. given the intentions around russia. if that deals go through, if iranian sanctions are eased, we expect one million barrels a day of oil come to the market by april. so this can clearly take some pressure off. that said, if russian tensions continue to escalate, then we won't be getting a lot of relief, even if the iranian deal goes through. haslinda: we heard from the iea it could take two to six months for the iranian oil supplied to get back to the market. sri: we think there should be close to one million barrels around second-quarter. we do not think it will take six months. we do see a lot of iranian oil floating around which could be made available to consumers.

it kind of gets stored in china and some storage sites across the globe which can be a made -- can be made available quickly to major consumers. haslinda: where do you see oil year end? sri: it is a very tough question to answer at this point. if you had asked me where do i see oil at the end of this week, i need to think about. if we put together all the fundamentals, keeping geopolitical tensions aside, we think oil, if say the russian situation eases, and the arabian oil comes back to the market -- the iranian oil come s back to the market, could be $80 a barrel. we see some pressure building on oil by years end, given a lot of

additional supplies were made available and at higher oil prices, demand growth will dampen a bit. given these two factors, we think fourth-quarter there should be pressure on oil and prices could retreat below $80 a barrel. yvonne: what should we watch out for in the opec meeting next week? sorry, my phone is ringing. when it comes to the opec-plus meeting, what can we expect? sources are telling us they want to raise output. is that likely? sri: they want to raise output. but if you think about it, who can raise output? they are really struggling to meet the increase. given that and the background, we don't think a lot of we made immediately available to other

countries. so, we need to think about this when all these headlines come out. yvonne: sri, thank you so much for entering my question. my phone was a bit loud there. just take a look at markets. still very much risk off as we speak. a lot of moving parts as we just heard. the u.s. envoy said the u.s. will take further measures against russia on tuesday. you are seeing equities continue to fall out. dollars catching a bid amidst a haven play. oil, wti $94. brent, just about $3 away from $100 oil as sri was just talking about. just how elevated oil prices can stay as geopolitical tensions simmer. bonds a bit up. new zealand, japan, australia, treasuries are a bit up after

the u.s. holiday. so, it's very much the typical risk-off move right now. aluminum at 2008 levels. steel futures in china also looking good. you look at all of this right now, combined that with hstech that is now at the lowest since its inception, you have a lot of walls of worry. whether it is ukraine, fed rate expectations, tech crackdown in china. continuing that downside here, 18% lower. we heard the u.s. saying there could be swift and severe responses should there be an attack on ukraine. here's how it is looking. it is at the lowest since inception. we thought it was nearly over but not really the case. china maybe renewing scrutiny.

there are these biggest state owned farms and there are other links to the group. the process is being described as the most wide-ranging look into deals. there is a very rare statement coming through. let's bring in matthew to walk us through a lot that is going on with chinese tech. what you make of the latest rumors of the clampdown on tencent. there was a lot of talk about the metaverse that i know you are very much focused on. >> what we are seeing reflects how skittish investors are. the finger is on the trigger to

sell any time there is a new crackdown on the sector. this is a great example of that yesterday with tencent. there were some rumors of another crackdown, someone recirculated a post after a year. lots of things that just show up on social media and everyone just hits cell, asks questions later and that is the environment we are stuck in. we have the food delivery companies, we are seeing the news right now. it is clear that the headwinds from regulatory crackdowns are by no means clear yet. corrects when you look at tencent, the valuation has been stuck at a low since july. a lot of investors look at the start up as pretty cheap. what is your view on the possibility for multiple expansions in 2022 to help reverse some of the wipeout in 2021.

>> when it comes to tencent, we are waiting for a catalyst to drive a new valuation regime to take us back to higher multiples. what we saw in the 2018 and 2019 crackdown really focused on when there is visibility to where new game license approvals would come through. we think it is going to be the same case this time around. game approvals have been frozen since july or august since -- at this point. there have not been any new games approved in china. when we start to get a glimmer of hope that that is coming on the pipeline we think that should be the catalyst to help drive valuation higher. until then we think we are stuck in a rut. there could be several more months possible forget visibility to that just given how far-reaching regulatory agencies are going across the tech landscape. you almost get the sense that gaming is kind of off on the side with so many other big-ticket items being focused

on. >> there is a lot of these people just guessing what the next investment plan is going to be after they cut steaks as well. they have a huge portfolio of companies they invest in. what you think will be next in terms of all this and how do you think it will affect the overall investment case for the company? >> the investment portfolio over tencent is strong and broad. it does give you a backstop in terms of the valuation framework. we have this really strong core businesses. once the regulatory environment eases, there is value there. they had this huge portfolio of investments. it is just a question of timing and the catalyst to recognize that. if you look at stakes and companies like the owner of the pub g franchise listed in korea,

a lot of the shares that tencent owned were locked up, that could be something they look to throw down. they are looking to take their voting stake below 10%. that is something to watch. they reduce their stake in jd.com. if they are going to pull back their tentacles across the chinese internet landscape, that is something we think will happen. companies like that or other stakes they could look to take down. as they monetize these stakes, that proves the strategy. and then that reinvest into the next phase of growth. the metaverse is a big part of that. it enables them to reinvest into these new businesses that are going to keep growing a lot faster. >> thank you for that. let's take you to new york where the u.n. security council meeting is happening right now. we have the u.s. saying it is

dealing with allies and partners on sanctions. this is on russia on tuesday. the u.s. saying that putin has 20 minsk agreement to shreds. thomas greenfield said that much. we have other members of the un security council speaking. for now, let's get to heidi. >> the latest policymaker to slam a 50 basis point hike at the march meeting. speaking at a banking conference on california on monday, she supports raising rates in march. however she added it was too soon to tell how big of a hike there is. several of the biggest opec-plus producers are said to be pushing for another upward hike next month. they are looking to continue the

current strategy. another 400 thousand barrels of crude per day. this has been gradually increasing supply since the start of the pandemic. opec-plus meets on march 2 to make a decision and all members need to reach consensus. hong kong is inspected to unveil a budget that is headed further into the red. they believe this will leave a heavy toll on growth. paul chan is expected to drive the government budget with the fourth fiscal deficit in a row. that announcement is expected on wednesday. the japanese trimester says the benefit of growth does not belong to a limited group and should have more stakeholders. some of them said apologies are negative for stock prices. the new capitalism program talked into a shift from shareholder focus.

capitalism must be something that belongs to all. global news, 24 hours a day on air and bloomer quicktake, powered by more than 27 hundred journalists and analysts in more than 100 20 countries. i am haidi stroud-watts, this is bloomberg. >> trimester boris johnson says you can must learn to live with covid as the pandemic was in england. as well a top expert in china calls for hong kong to stick to its dynamic covid zero policy. let's bring in michelle cortez to discuss the divergent approaches to the pandemic. make sense of that. >> what is happening across the globe? is the government just deciding to live with a virus, and the virus based on their own individual populations? boris johnson and u.k. is ready to move on, pray to move past coronavirus and they will no

longer be requiring people to test regularly if you have been in contact with somebody who has been positive, you don't have to test. you don't have to isolate, you don't have to tell your employees but they are saying use caution and common sense. if you're not feeling well, stay home, take a test, isolate, don't put other people at risk but it is not coming from the government, not being mandated. in hong kong, the outbreak is growing especially and the government is looking to increase the curve to actually impose new restrictions, keeping people from going out if they are not vaccinated, limiting the number of people who can go to restaurants and other types of measures to actually reduce social interaction and get the virus under control. it is just a different way in different places. >> what are authorities talking about now?

are there dangers to dropping these restrictions at the moment given the outbreak we have seen so far? >> absolutely. anytime you reduce restrictions you will start seeing cases increasing. that is something we know will happen and they know that will happen in the u.k.. at this point, coronavirus cases are coming down in most places across the world so that will likely increase that we will continue to see this decline in cases but it will not fall as quickly as others would because of the increased social mixing that will be happening. people will transmit the virus from one person to another. especially because we know that vaccines are not stopping the infections themselves. so in the u.k. they will see an increased number of cases. hospitals are going to have to deal with these rising numbers and perhaps be overwhelmed as well. they are hoping that some common will allow people to get it under control to minimize this.

per population, they will have to live with covid. no matter what that looks like. they are ready to get that done. they'll have an increasing number of cases which that warning will happen. >> thank you so much. joining us for the latest on the covid impact. we are looking more at these features in new york and the envoy. just finishing her speech at the u.n., speaking at this emergency session on russia. day two along with the u.s. have announced they will be announcing new sanctions on russia on tuesday. that seems to be something we are hearing. you are hearing the mexican ambassador to the u.n. now speaking but we will continue to watch this meeting as it plays out. coming up, the abu dhabi sovereign wealth fund leading a new funding round offered for

princeton digital. this is bloomberg. ♪

>> take a look at the markets

here, your futures are continuing in the red. down more than 1.5%. it seems like we are falling the most here in asia on the rising tensions we have seen surrounding ukraine. not much that we are getting out of this un security council except that the u.s. and the u.k. have announced today may be imposing some new sanctions on russia on tuesday. let's switch gears and talk about data centers now. the digital group has pulled in more than $500 million in a funding round led by abu dhabi. and underscoring the investor demand for the infrastructure, that supports the internet. let's look at all of this and more with the princeton digital group chairman. thank you so much for joining us. congratulations on the funding round. where does this all go? where do you see specific growth outlook for the company? >> good morning.

with this investment, this is one of the world's largest sovereign funds. we will consolidate our position as the market leader for providing the was largest cloud and commerce companies and also help us grow organically. this gives us more room and ammunition to grow across the region. india, japan and china and we are going to deepen this market. corrects how do you think of it has changed the game to offer the business? it looks like here in hong kong we are in one of a few nations who are continuing to live with covid or not live with covid, do you think this trend of people continue to work from home, does that change in anyway way how

you look at the business? >> what the pandemic has proven is that cloud and e-commerce are irreversible trends. the last few years are showing the consumers have adopted the commerce. they have adopted cloud in more ways. we are confident that in the coming years, the need is going to continue growth. the next is the demand for data centers across asia. some of the rows largest economies here, japan, china and india are looking for further

e-commerce penetration into the market. >> maybe we could consolidate assets in your assisting markets. >> we do. we do organic growth. we started one in tokyo in the middle of last year. an existing data centers with an opportunity for growth. we acquired a data center from a telecom operator. we acquire existing businesses and we already started another project. that is one of the unique capabilities that we have brought to market. we took care of a very hard

problem. and the scale across multiple markets at the same time. what we are able to do is apply different investment approaches across different markets and we are able to scale. now we have 20 data center projects. we have 600 megawatts in our portfolio. that is a very strong position to be in. to become a market leader of customers. just thinking about our investment approach and the investment we have with our long-term investors that gives us the ability to consolidate pollution. >> the yuan is holding an emergency meeting in ukraine. might geopolitics hinder your expansion plan? >> some of these challenges

within the market, when in fact that has if potential increases in oil prices, that could drive inflation up. in terms of the situation, half $1 billion here. this gives us a very strong position. this gives us an opportunity to weather the storms. that is what our customers see. it is the long-term player now. this will be coming into what you just mentioned. >> how real are the supply chain pressures this year? have you seen any sort of let up at this point? has this delayed some of the

projects you are planning to launch as well? how do you manage the sort of supply chain risks? >> i think supply chain over the past 18 or 24 month has been a real problem. what we have been able to do just before the pandemic, we were looking at some large projects. we were able to complete this project on time. over the last two years, these were on time, under budget and we had investors that give us an opportunity to work with the vendors much better. we got -- we get much better treatment in terms of getting our product shipped. that is a very important factor. this that suppliers know that we are going to make a project happen on time and stay on time.

we are confident that over the next year or two, as the supply chain continues, you're in a much stronger position to be able to deal with that kind of issue but at the same time we see a lot more products being shipped now in a much better supply chain, a much more optimized way in the shipping industry and we saw 18 months ago. things are getting better but it will take some time. we are in a good position to deal with the situation now. this will manage the supply chain much better than they anticipated. this puts us in a much stronger position than either of the supply of partners out there. >> there are a lot of different governments that have raised concerns considering data can see already. how do you mitigate those risks

when a country like china puts that into focus here? >> they make more data centers in the market that we operate and practically every country in the world today is dealing with risks. i think it will build up the industry of data centers so that data is stored locally in the country. our customers are the commerce companies. they are the ones that will be compliant in terms of regulatory needs and dealing with data privatization but we are very well-positioned to deal with all of these issues in a larger capacity. as we have seen technology emerge like artificial intelligence, metaverse, they're going to drive a lot more data across the world by consumers,

businesses, government. that will drive the demand even more as we keep going to the next few years. >> thank you so much for your time along the preston digital group and congratulations on the latest funding round there. let's take a look at the pictures in new york here. we will continue to watch and continue to follow this yuan security council meeting on ukraine. we are hearing the canyon on speaking now. you can watch that on live go. as well as some of the events that you may have missed earlier. this is bloomberg. ♪

>> let's look at the markets here and continue to see the border when it comes to risk assets here as we continue to watch what comes out of this yuan security council meeting in new york. they are looking to impose sanctions on russia on tuesday but u.s. futures continue to be deep in the red, 1.7% lower. gold is catching quiet a bit at 1908. u.s. bonds a little bit as well. the dollar-yen is 1.14.

we have seen a little bit of consolidation when it comes to this, there is still a fragile sense out there. ♪

>> it is almost 11:00 a.m. in singapore and shanghai. welcome to bloomberg markets asia. i'm haslinda almond. >> i am rishaad salamat. here is a look at the top stories. the u.s. with an emergency security council meeting, morse actions on russia. that after president putin recognizes a separatist area of ukraine. the geophysical tensions in asia rther south.

oil prices jump. we have china -- signs that the china tech crackdown is not over yet. jack was group could face further scrutiny and the merely adding more intensifies. >> the slide to safety in full swing on geopolitics. we have the u.s. and its allies saying new sections will be imposed on russia on tuesday. this is on the asian benchmark. the hang seng index extending its decline. what about the tech clamp down by china? what about .1%? we are also seeing in terms of the fixed income space yield, a 10 year yield down by about five

basis right now. and when it comes to commodities, wti crude up by 3%. it is heading ever closer to that $100 level. >> let's take it to the un security council. it is the ambassador to the you and ghana speaking. all of this against the backdrop . this after president vladimir putin announced he is recognizing separatist republic's in the eastern ukraine. a dramatic escalation in this standoff with the west as the united states and its allies worn it could soon invade its neighbor. russia could soon invade its neighbor. the fears slightly heightened the details of the russian president including an order for the defense ministry. there are peacekeeping forces to the east central breakaway regions.

let's go to bruce einhorn for the latest. this was a bit out of the blue the other night. what is the security council discussing here in this emergency meeting? what is the likely outcome? >> regarding the likely outcome of this current meeting of the security council, it is import to keep in mind that russia has a veto on the security council. there will be no security council. i think that is pretty safe to say. it will be interesting to see what china has to say in this. the council of china has been very close with russia. president putin went to beijing for the opening of the liv-ex and met with president xi jinping. what will china say about what russia is doing in ukraine?

that is one thing to look for. >> is there a chance of diplomacy? >> a lot of countries think that there is no longer any room for diplomacy. it is worth focusing on some of the countries that were either part of the soviet union or soviet satellites during the cold war. the prime minister of estonia, one of the baltic nations that would have been taken over by stalin, she said that this shuts the door on diplomacy and creates an excuse for war. similarly, the foreign minister of lithuania, another one of the baltics said that this shows russia's contempt for international law and said it did this outside of international rules. the defense minister from the czech republic which had been a satellite nation during the cold war said that on twitter that it

is important to note that this is not just about ukraine, the defense minister said it is not just ukraine on putin's chest. we are there. from a lot of the nations that are most at risk, it seems they think diplomacy is no longer an option. >> this could all be incremental with a long-term view of crimea in 2014. the thing is do we stop here? do we start making noises about the rest of the ukraine? >> that is the concern and the concern among people in the west , leaders of the western nations although it may not even be that slow, this may be some that happens quick quickly. we know that president biden last week warned that russia was

intending on an invasion that would target not just this breakaway region in eastern ukraine but the whole country including the capital. whether the timeframe is as stretched out as you just laid out the scenario or if it is much sooner, either way, it is something that western leaders believe that is what vladimir putin has in mind. that was bruce einhorn there. here is the tactical shopping basket with an eye on chip liquor tensions. thank you for joining us, ben. how do you ready your shopping basket? is it all baked in? good morning. i think very carefully of course.

this is a very fluid situation. obvious consequences on the ground. even some further afield about inflation and therefore policy. this is extremely confusion for markets and markets are retreating somewhat. that very confusion can present opportunity. we are very carefully thinking about the weeks ahead where we can deploy some incremental risk and really try to cut through some of this confusion and get back some of our core beliefs such as a preference for normal assets, global -- global equities and so on. we are extremely respectful and mindful of the current situation but this confusion it is causing and markets could potentially create some entry points in the days and weeks ahead.

>> i'm going to interrupt you because we have these meetings taking place at the un security council and we have the ambassador to china speaking at the moment. let see what their response is to all of this. >> we are looking for a double medic solution and recall on all parties to deal with this on the basis of equality and mutual respect. the current situation in ukraine is the result of many complex factors. china always makes its own position according to the merits of the matter itself. we believe that all countries should solve international disputes by peaceful means in line with the purposes here.

>> i think the representative of china for his statement. i shall now make a statement from the russian federation. distant wish colleagues, -- distinguished colleagues, we just heard a number of highly emotional statements and far-reaching conclusions related to the signing today by russia's president of decrees recognizing the people's republic's. this will leave direct verbal assault against us unanswered. now it is important to focus on how to avoid war and force ukraine to stop the provocations. from the statement from a number of r. kelly's, one may get the impression that russia's recognition took place suddenly. for no reason at all.

of course, that is not the case. it should be remembered that they declared their independence from ukraine back in 2014. but we only recognize them now despite the high level of support for doing so both in the republics themselves and in russian society from the very beginning. at the time, the hope that the ukrainian regime might take again and would stop talking to their own citizens in the east in the language of cannons and shooting and threats. time and again we firmly asked he to listen to the people living there and the russian-speaking resident of the country, to respect their desire to use their mother tongue and teach their children in that language and to honor the memories of those who liberated the land from fascists rather than those who fought on the side of fascists and had a killing -- a hand in killing

those people. after ukraine military adventures butted up against the determination of people defending their lands, the minsk agreement were signed and the measures adopted with the aim of implementing it. there was once again hope for peace and stuff hoping that authorities would be sensible. there was a particularly great amount of hope invested in the election in 2019 of a new president of ukraine. who promised at long last to establish peace. those who hope to the ukrainian authorities would take a peaceful stance were mistaken. pf not only quickly returned to its bellicose rhetoric and continued the shelling of civilians but did everything it could to sabotage and ultimately destroy -- destroy the vince cable agreement.

most importantly is the flat fusil of key have to speak directly with the representatives despite the fact that this requirement is a central structural element of the package of measures. and n on a big u.s. confirmation of a willingness to engage in that dialogue is something we heard repeatedly in the past few days including from the rep resented of of ukraine during the security council we did to discuss the implantation of the minsk agreement. after that it became clear that ukraine did not intend to implement the minsk agreement. we would like to recall and remind my colleagues on the security council that in all other conflicts, be in libya, syria or yemen, we all demand and call for direct dialogue between the parties to the conflict and it is only in ukraine, ukraine that is an exception to this rule.

from some statements today, one may understand that a number of our colleagues are already ready to bury the minsk agreement but i would like to remind you that when they were concluded, the lpr and the dpr had already declared their independence. the fact that russia today recognizes that in no way changes the makeup of the parties to the minsk agreement because russia is not a party to the minsk agreement. we have repeatedly declared this and in so doing in this regard, nothing has changed. it is another matter that the minsk agreement were supposed to be unlimited back in 2015. they have long openly been sabotaged by ukraine with the backing of our western colleagues. today we can see that many colleagues want to sign up to the idea that the minsk agreement is dead but that is not the case. key have is still bound to

implement them. we remain open to diplomacy for a diplomatic solution however, allowing a bloodbath is something we don't intend to do. unfortunately we are forced to note the extremely negative role late in all of this by our western colleagues led by the usa. instead of forcing key have to implement, they have been openly taking ukraine on, -- egging ukraine on. repeating the main list mantra not being implement it by russia. russia is not even a party to the minsk agreement. moreover, for the last few weeks, whipping up on -- unfounded panic about ukraine, our western colleagues have been unashamedly cramming weapons into the country, sending instructors there, essentially nudging the ukrainians who have

concentrated a 120,000 strong military contingent toward done best. the joint efforts have inflated an air bubble that had to burst. the past week and has had a sharp increase in the intensity of the ukrainian shilling and residential areas and the 1600 have been killed. the territory of the republic have been penetrated by subversive groups who have carried out or try to carry out sabotage of critical infrastructure. as i already said, there are casualties from among the civilian population. it is in russia and not ukraine that refugees have flooded here. this has raised around 68,000

people and russia is hosting them and broadening conditions with them to be supported. there has also been a shilling of some towns and villages on russian territory near the border zone. it has become clear that don bass is on the brink of a new ukrainian adventure. as was the case in 2014 and 2015. we cannot allow that. that is why the russian president heated the opinion of parliamentarians and members of the russian security council. you know the rest. the reasons of this decision has been taken with -- and broadcasted in detail by the world's leading media. today, it is true that we have an open distortion of what the president was talking about in his statement about history and the genesis of this situation and the fact that he allegedly said he wants to reconstruct the

russian empire. i would like to call upon our western colleagues to think twice, set emotions to one side and not make the situation worse. no one other than you can hold back the plains of kiev and force it to stop the provocations against the people's republic's in this -- which in these new conditions could have extremely dangerous consequences in accordance with the agreements that were signed today and on the basis of their requests from their public, peace giving functions on their territories will be carried out by the armed forces of the russian federation. to stay with colleagues, in conclusion i would like to note that in today's statements, most of you did not find any place for the more than 4 million residents of that city. it is as though you have been counseling out of faith from 2014. recalling the pro-russian separatists.

at the same time, you decided that the legal coup into any 14 only wanted to discuss with the new 30's how the rights would be upheld. that is all they wanted to do. and last few days with the sharp identification in military activity from the ukrainian army and along the contact lines. the alliance of hundreds of thousands of women, children and elderly persons have ended up under real threat and the main aim of our decision was to protect and preserve those people. that is more important than all of your threats. i resume my function as president of the council. i now give the floor to the permanent resented if of ukraine. >> distinguished members of the

security council, undersecretary, it is with unease that i will now remove my mask and it is now because of the covid virus that we are all vaccinated. it is because of the virus that has so far, no vaccine, the virus that hit the united nations and the virus that has spread by the kremlin. the delegation of ukraine has requested this urgent meeting to draw the attention of the security council to the legal and legitimate decision by the

president of the russian federation to recognize the occupied parts of these regions of ukraine. today, the entire membership of the united nations is under attack. under attack by the country that occupied the membership of the security council in 1991 by passing the u.n. charter. the country that occupied parts of the territory of georgia in 2008. the country that occupied parts of ukraine in 2014.

calling the urgent meeting of the national security and defense counsel of ukraine. the internationally recognized borders of ukraine have been and will remain unchangeable. regardless of any statements and actions by the russian federation. ukraine qualifies the recent actions by the russian federation as violation of the territorial integrity of ukraine. the political leadership of the russian federation selby fully response before the outcomes of the decisions taken. this may be considered as a unilateral withdrawal with russia by the minsk agreement and while it disregards the

decisions taken in the framework of normandy fall. this speaks to efforts involving the existing negotiating frameworks. by the decisions adopted today and those that may be adopted tomorrow, russia legalizes the presence of its troops which have actually been in the occupied areas since 2014. a country that has -- is not able to maintain peace as it claims. what will happen next? we want peace and we are consistent in our actions. today, the ministry has sent a request on the basis of the

budapest memorandum to guarantee the security of ukraine. the meeting of the yuan secure to a special meeting have been initiated. we insist on the full-fledged operations to prevent further escalation. an emergency summit has been requested. we expect from our partners clear and efficient steps of support. it is critical to see now who is our true friend and partner, who is on the side of the u.n. charter and who will continue to deter russia by words only. we have the diplomatic settlement and do not succumb to provocations.

in accordance with article 51 on the charter, ukraine has the right ear. it will stay firmly on it. we are on our land. we are not afraid of anything or anyone. we will not give away anything to anyone. there should be no doubt whatsoever because it is not february of 2014. it is february of 2022. another country, another army, one goal is peace. peace in ukraine, peace in europe, global peace.

we must do all we can to make sure that the problem is resolved through an limitation of the minsk agreement. that was set here in the security council chamber just four days ago. fed by the russian deputy foreign minister in the chair of the president of the council with a reference to president putin. president putin who has making -- made a decision that we discussed today in regards to the u.n. charter. in particular, article two of the charter as well as international peace and security. the peace and security of every counsel has been a crime of responsibility to maintain under the article 24 and in accordance with the article 39, the security council shall make accommodations or decide what

measures shall be taken to maintain or restore international peace and security. the delegation of ukraine requests the security council members to exercise the above. we invite the russian federation to reread again and again carefully, today's statement where the secretary-general considered the decision of the russian federation to be a violation of territorial integrity. and inconsistent with the principles of the charter of the united nations and their paying the secretary-general's further powerful statements. in conclusion, i would like to reiterate that it remains up to russia to abandon its

long-lasting strategy on ukraine. this is based on the user force. this reengage is what we have all met -- what we have all admitted to. this will cancel this and return to the table of negotiations. we condemn the order to deploy additional occupation troops.

the united nations is sick. that is a matter of fact. this is in the hands of the membership. today, the kremlin faced this word by word. word by word, copied, pasted. no creativity whatsoever. who is next?

the question is open. thank you. >> and the president of the seeker to cancel and i am obliged to say this. >> thank you, mr. president. correct this council meets to discuss the situation in ukraine. they need to be incremented. including by the russian federation.

also, the basic principles in the u.n. charter. this is another dilbert invasion of the territory after the annexation of crimea. my government condemns russia's violation of the territory and integrity and sovereignty of ukraine. we are seeing plenty of zhou put ago consequent is. i call on all member states to join us in condemning russia's actions today.

we have seen of their up along the line of contact over the last days, and efforts that appear to create a pretext for russian attacks. russia has declared there will deploy troops to is 20 crane. . the u.n. charter is clear. it prohibits the threat of force against a territorial and political independence of states. the current russian force deployment can only be considered a further threat against ukraine's territorial integrity. mr. president, i call on russia to its obligations as a permanent member of this council, and i urge pressure to immediately revoke today's decision and recommit to the minsk agreement, in line with the normandy agreement. russia must not cross the international recognized orders of ukraine.

moreover, russia must withdraw its troops from the region bordering ukraine, russia, and belarus. i call on russia to return to the infrastructure in europe that has been built over decades. we call upon russia to instead return to the path of diplomacy. instead of shedding further blood. we are steadfastly standing by ukraine, its territory integrity, 70, and its people. thank you. >> thank you to the representative of germany for her statement. there are no more names. the meeting is adjourned. haslinda: you just heard the members of the u.n. security council, taking turns to speak on the situation in ukraine in

an emergency meeting held at you and headquarters in new york. you just heard from germany, calling for diplomacy. a diplomatic settlement. russia's envoy to the u.n. said the focus right now should be on avoiding war. rish, earlier on, we heard from the u.s. announcing new sanctions on russia come tuesday, something that the u.k. are as well. both the u.s. and the u.k. are expecting to put new sanctions on russia on tuesday. rishaad: absolutely. we did hear from the acting ambassador to the u.n. from ukraine. as well as a brief statement urging diplomacy from the chinese ambassador, and the russian federation ambassador to the u.n. a rather impassioned statement

coming through there from the ukrainian representative. we will have more on this, markets are reacting to the hang seng erased all the gains it has made this year, continuing its lurch lower by 3%. let's get the first word news headline with haidi stroud-watts haidi: china may be renewing scrutiny of jack ma's ant group. china is about to start a fresh round of checks on state owned firms and banks' financial exposure to alibaba group. it is described as a wide-ranging look into deals with ant it is unclear what triggered the inquiry or whether it will prompt any actions. several producers are said to be pushing for another output hike in oil next month. they are continuing to look at their current strategy, and want

to add another couple hundred thousand barrels a day of cruise to the market. they have been increasing supply since the start of the pandemic. opec-plus meets on march 2 to make a decision, and all members need to reach consensus. hong kong is expected to unveil -- a corporate spike has pushed authorities to recommend restrictions which economists predict will leave a heavy toll on the growth. the budget is expected to go to its fourth fiscal deficit in a row. the announcement is expected wednesday. former u.s. secretary of state mike pompeo is scheduled to travel to taiwan next month, and that would make him one of the most senior u.s. dignitaries to visit the island in recent years. he is said to have accepted an invitation from a foundation. local media is reporting he will meet with the president. during the trump administration, pompeo was a vocal advocate for a hawkish chinese policy.

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 haidi stroud-watts. this is bloomberg. ♪ rishaad: thanks. we will monitor the fallout from that emergency meeting at the u.n.. meanwhile, have a look at hsbc as it is expected to note a momentum on positive fourth-quarter results as it comes out with full-year and fourth-quarter earnings at midday hong kong time. raising interest rates and covid have impacted asia, that is meant to figure prominently in the bank's outlook for the year. let's get more with over kai: correspondent stephen engle. will there be any -- chief hr asia correspondent stephen engle. stephen: they alluded that after the third quarter results, the interest rate environment and the impending rate hikes would be very positive for its overall

business. with net interest margins and net interest income on the increase. bloomberg intelligence is expecting net interest income of 6.4 billion dollars and margins at 1.9% appearing reasonable. according to bloomberg intelligence, that was the same as what we saw in the third quarter. the cfo, we will be speaking to him on bloomberg television shortly after the results, i believe about 1:30 hong kong time. after october he telegraphed the interest rate environment. he said we believe we are close to an infection point in revenues. if we get rate rises it will be, a kicker to our performance. emphasis on the u.k. in the fourth quarter with a couple of rate increases, and now with the fed about to liftoff with its rate increases in 2022. we will get some guidance for the full year of 2022.

the wildcard could be asia. asia contributes the bulk of earnings and revenue for hsbc, despite its domicile in the u.k. here in hong kong, though, as we all know, the risk environment is a challenge with the covid situation, and also with the developers in that. issues that really bubbled up to the fore -- about 12 chinese developers defaulting on their dollar bounce since october. so the fourth quarter see those issues. will they be reflected on those results from hsbc? there will be a lot to look at. we will be looking at further buybacks. i was watching the wire and there was another announcement of hsbc, $10 million worth of buybacks. they also announced a $2 million buyback plan in the last quarter

results. we also need to look at dividends and the like to see if this company can build on the momentum that they got in the third quarter of last year. haslinda: our chief north asia correspondent stephen engle. let's get to new york where the emergency u.n. security council meeting just concluded, and let's listen in. >> over the past few weeks on russia threat to the ukraine. this is the third time you have heard from the rest of the security counsel a unified message that russia should not start war, that russia should lean towards diplomacy. that it shouldn't continue its unprovoked attacks on ukraine's sovereignty and on their territorial integrity. it should not defy the foundational principles of the u.n. charter. you also heard the u.n. secretary general make that statement as well today. today president gave a speech

that set the pretext for invasion. in doing so, he tore the minsk agreement to shreds. and as the secretary-general said earlier today, he violated the u.n. charter. just now, my russian counterparts made assertions without evidence that demonstrate their efforts to create a pretext for conflict, and it is alarming. it is alarming. and it is shameful. every u.n. member states has a stake in what comes next. and annual debate on this topic was already on the agenda for wednesday for the general assembly. we expect strong statements in support of ukraine as we did today in the u.n. charter, and a chorus of calls for russia to seize hostilities. this is the moment to stand up and defend the u.n. and our international order as we know it. tomorrow the united states will

impose sanctions on russia for this clear violation of international law and ukraine sovereignty and territorial integrity. we can, will, and must stand united in our calls for russia to withdraw its forces, return to the diplomatic table, and work towards peace. thank you. [reporters shouting questions] >> are you optimistic -- >> we will see where it goes. >> territorial integrity? rishaad: that was the u.s. representative to the u.n. there, making her report on what has been going on inside the chambers. linda thomas-greenfield, really condemning vladimir putin's actions, on top of that, saying they will be announcing sanctions on russia, without being specific. back to the market action. all of this is leading to

further declines. the msci now 2.1% to the downside. in hong kong, chinese tech stocks dropping for a third straight session. further concerns about beijing's regulatory climate for the industry group there, alibaba, the fulcrum of all of this, declining. following a report by bloomberg that authorities working at checks for the fintech. talking about ant financial. amongst all of this, the overlays also, that we will be seeing perhaps declines across the globe here, with s&p futures and euro stoxx 50 futures, all indicating a move down to the downside. what we have coming up, a conversation with trust mutual fund's ceo on the massive rally in indian dollars. the reserve bank of india is

dovish. where he sees the market going next. we will again talk about the situation on ukraine. this is bloomberg. ♪

>> i am not a spokesperson for the minister. >> they now expect that the west starts something -- that's

something. >> the entire civilized community. right. >> the west has been hit by the kremlin -- but as you heard today, my dear friend, as you heard today from africa, and i invite you to read the african statements. it is not about the west after all. if there was anything important in today's meeting, it was a very, very powerful statement by the african ambassadors when they spoke about colonialism. when they spoke about borders. one day spoke about imperialism. i invite you seriously to read the canyon statement. i invite you seriously to let your readers know about that statement from the ambassador of ghana. to share with your readers and

viewers the statement by gabon. i invite you to listen once again to what the ambassador of mexico and brazil said. even the russian ambassador, in his concluding remarks, said that the majority unfortunately says this and that, even he confirmed the factor. that the majority of the security council wasn't buying his arguments. reporter: are you unhappy with the european statement? >> who said i was not happy? don't put words in my mouth. reporter: what about the sanctions? >> go ahead. reporter: what do you think about the sanctions from the united states and the u.k.? >> i haven't seen them yet. >> reporter: diplomatic relations with russia? >> what for? to be emotional and dramatic? we are not in the theater.

it is up to my government to decide. we will take very informed decisions. if you follow the meeting of the national security and defense counsel of today in ukraine, they remained open. they left the room, but they said that the meeting of the security council in ukraine will continue to adopt necessary decisions. [reporters asking questions] >> the united states is convinced there will be further invasion. are you? >> there will not be further invasion. putin said himself he will send more troops to ukraine. there will be further invasion. reporter: going back to the normative format, you mentioned that. is there any -- about going back to the table to revise the minsk agreement between you, france, germany? >> we all want to have summits.

you can really offense from micron and former german chancellor on the issue. we are all, with the exception of russia, willing to sit down unconditionally and discuss the normandy format in the necessary steps. it is only russia who puts conditions. reporter: the u.s. says the minsk agreement is a threat to peace. >> said what? reporter: the u.s. ambassador said the minsk agreement is a threat to peace. >> they have a powerful mission with many spokespersons. reporter: do you really think you can take it up again and there is hope that diplomacy has a chance? >> i said on the minsk agreement what i said and statement, you can quote my line that is the ukrainian envoy, taking questions from the media after the emergency meeting earlier. he had said a peaceful settlement is the way forward and that there has been a unified message that russia

should avoid a war. that was the message sent by all countries, including the likes of the u.s., which also said that they will impose new sanctions on russia come tuesday. a similar vein from the u.k. as well. now to india, where bonds have been rallying after the central bank held back on her way be expected hike in the error rate. auctions and a dovish central-bank decision drove benchmark yields down in the past two weeks. but traders say that half of that will unwind just before the start of india's record borrowing plan in april. let's get more with the ceo of trust mutual fund, that invests in fixed income instruments. thank you for joining us. what do you make of the bond rally in india? is that sustainable? sandeep: the rbi took everybody but some -- by surprise but not

hiking rates. it will continue for a while as well, because short-term rates are going to be low and the rbi has simply reduced inflation expectations by projecting inflation at -- at the end of the year. whether that will actually come true or not depends on multiple factors. but most people don't believe that will come true. so i think all rallies are intermittent and countercyclical. interest rates are headed upwards, because inflation expectations are not going to come down. number two, supply of government bonds will be fairly large in the next financial year. i think one thing people are missing is that, when the fed

starts tightening -- you couldn't find a hashtag of qt, you could find key. quantitative tightening i don't think is in people's minds yet. when that happens, i think the unintended consequences of that will have an effect on all asset classes. and i think indian bonds, given the expectations that there will be inflation of at least 5%, should trade in the range of seven to 7.5 in the coming future we have seen the rbi draining rupee liquidity. how might this play out, and how will the bond market the impacted? sandeep: that is something we are unclear about, the stance on liquidity. because on one hand, one has the

-- to normalize rates. on the other hand, liquidity swings from surplus to negative. so that has more of an impact on the shorter end of the curve. the longer end of the curve is more influenced by the inflationary expectations and crude oil prices and things like that. rishaad: we have been looking at what is going on in the u.n. security council we have been looking at the flows to havens. have you seen any foreign funds that are seeing the indian market as being a haven, and if there was an impact? sandeep: my belief is that foreign funds are typically going to markets where real interest rates relatively higher . and since our real interest rates have been fairly low for a long time, i don't see an

immediate inflow of funds or indian bonds being seen as a safe haven. until yields rise some more from here, and people are used to a real rate of 2% to 2.5% on indian bonds. so there is still some way to go . rishaad: with that in mind, do you think that lift up in yields you desire is partly down to this rbi nine view of inflation? you think it is falling behind the curve as well? sandeep: sorry, i didn't hear that. rishaad: i think part of the reason you are saying you would like to see yields higher for the indian bonds become a haven, i am asking whether that is partly down to this benign view of inflation that the reserve bank is taking? sandeep: yes, certainly that would be true, because a lot of

people do believe that rbi is behind the curve. my view is also that when one sees that the repo rate is higher, -- higher than expected inflation, then i think investors will be interested in bonds. so right now overnight rates are 3.5% to 4%. inflation is anywhere between 4.5% to 5%. so there is room to go. >> how much bond buying do you think the rba needs to make in the fiscal year? >> i think the rba needs to make at least three quarters of bond buying, which will be close to $50 billion -- sorry, hundred

billion dollars. but i don't think that will coincide with the rbi's objective of keeping liquidity tight. so it is a tricky situation. it will be a very difficult to buy bonds at the same time keeping liquidity tight. rishaad: sandeep bagla, thank you very much, from trust mutual fund. having a look at the reserve bank of india and looking at the bond market in india there as well. let's get a look at the markets. horrible day for equity investors. looking at were the biggest drivers to the downside, this is a look at the hs tech index. at the moment it is providing this big fall. tech stocks on their way down for a third straight session.

fresh worries about beijing and regulatory powers for the sector. seeing it down 3.1% at one stage. at the moment alibaba is partially responsible for the declines. this is down to a bloomberg report suggesting that authorities are kicking up another round of checks on its fintech business, ant financial. just two stocks moving to the upside, all the others are down. this is weighing heavily on the hang seng as we go into the lunch break there, as well as here in hong kong. we are getting hsbc numbers as well, haslinda. haslinda: let's look at where futures are headed on the back of that followed here in asia, right across the board, we have futures pointing to a lower open. the u.s. is joining in the fray after the holiday on monday. s&p futures pointing to a lower open, down 1.8%, extending the decline for the day. here is how it is looking for havens, it is a flight to safety. all the haven plays in focus

right now -- gold, in excess of $1900 an ounce. yen a 114.61. a look at the broader markets, green across asia. keep it here. "daybreak: middle east" is next.

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♪ rishaad: this is "daybreak: middle east." having a look at our top stories. i am sure rishaad salamat that joined by haslinda amin. president putin recognizes the need separatists and sends more trips to the region.