tv Bloomberg Markets European Close Bloomberg February 23, 2022 11:00am-12:00pm EST
on russia-ukraine tensions. the close starts now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ dani: i'm dani burger, with kailey leinz, in for guy and a lix. the equity situation still deteriorating. we were rallying to start the morning, but as we head closer to the end of equity trading, that is now falling to 0.1%. headlines over cyberattacks in ukraine from russia start to deteriorate sentiment yet again. the ruble continues to weaken versus the dollar, just around $81. as we see options traders with
50% chance that that the ruble will fall to a record low versus the dollar. and concerns about a frozen nord stream 2, whether more sections will be put on the energy sector. natural gas in europe up some 9.5%. the energy crisis is one that continues to add into inflation, as we see in the u.s. the front end of the curve really push higher. kailey: that is something we continue to watch in the bond market. in the equity market, as you have seen that rolling over in europe, so have things rolled over after a technical correction, down more than 10% from its peak earlier on this year, and adding to those losses now. the s&p 500 down about 0.3% at this point. you were talking about the bond market, all of the movement we have seen in the short end of the short end of the curve as traders gauge the federal reserve is likely to do. that has led to a persistently flatter yield curve, and the twos-tens spread around 38 basis points, starting to steepen just a little bit. still, that is where retrade at
the moment. it is not just about nominal yields. it is about the breakevens as well. inflation expectations you were referring to, the to your breakeven yield, inflation expectation in the short-term up another five basis points, the highest on record going back to 2004. oil one of those. wti up more than 1% at this point, just shy of $93 a barrel as oil traders as well as traders of all asset classes are digesting each and every headline. dani: the eu will hold an emergency summit tomorrow to discuss ukraine. let's bring in maria tadeo in brussels for the latest on this. what are we hearing about what will take place at this emergency summit? maria: this summit is happening tomorrow at 8:00 p.m. this is not on the agenda. a really underscores just how
fluid the situation is. you mentioned the trading session today has really changed, particularly perhaps the mood and the sentiment around 10 chile where we go when it comes to russia. i would point to two things. european officials do say that today is a bank holiday. that is why the russian side has been incredible quiet, but that could pick up from tomorrow. they also say the situation on the ground is as complicated and difficult and fluid as it was yesterday. the country is now going into a 30 day state of emergency. so you are going to see curfews, you're going to see more military checks. ukraine is repairing for potentially more -- is preparing for potentially more aggression coming from russia. european leaders still believe the situation is far from over, but also having to anticipate what russia will do next. that could potentially mean more sanctions. very briefly, the market did seem to be relieved that this
was a mild package, but i have heard from every official today get this is just step one and it is the beginning. it will be increment o, and there could be a lot more to come. kailey: we will wait and see. thanks so much to bloomberg's maria tadeo reporting in brussels. let's bring in mark champion, or bloomberg reporter who was recently on the ground in ukraine. maria mentioning ukraine heading for a state of emergency. has there been a shift in tone and the last 48 hours, now that putin has recognized those separatist era tories as legitimate -- separatist territories as legitimate? mark: yes, there has been a change in tone. the state of emergency make that very clear. they had been trying to keep things very calm. when you spoke to the ministry of defense and the intelligence people in ukraine, they were always very cognizant that there was a high risk that this would
end up in conflict, so it was not like they were living under illusion, but they were very cognizant of the fact that the belief in war actually hurts the economy, and they always measured the possibility that that may be what putin was trying to achieve, that he was trying to create destabilization, destabilize the economy, destabilize the crane politically. but what really has happened in the last 48 hours or so is that a new path has been set out by putin which is much more disturbing and seems rather more clear. dani: thank you very much for the update. according to at least one observer, putin's own advisors aren't completely on board. the former ukraine and bassar to russia sir andrew wood says they are trembling.
thank you so much for joining us. how effective will sanctions be against the oligarchs, against the ultra-wealthy, and terms of having them influence putin to back down? andrew: i would go back to putin's conversations with his advisors. they were an extremely long way away from a czar with a single desk. i don't think you will be worried too much about the fate of his advisors in the short-term. in the longer term, we tend to suppose they themselves will begin to act against putin. i doubt whether they dare to, so we will see. kailey: excuse me for interjecting, but if vladimir putin is not listening to his advisors, if he is not influenced by the threat of sanctions, is it possible that he could be deterred? andrew: i think what he has to
fear is more the slightly longer term effect on the russian people. the russian people are not inclined to the idea of fighting against ukrainians. they are not as offended as putin is by the fact that zelensky is a small nothing, as far as he is concerned, and the mood for putin i think is very poor in general. dani: we have heard others say that perhaps he is more isolated. i do wonder what you make of what the u.k. has done. i want to bring you a quote from our bloomberg opinion colleagues who say that the sanctions that the u.k. has done serve to neither turn nor punish putin, seem largely a gesture for a domestic audience. the measures were even out of step with the sanctions announced by both the u.s. and the european union. if sanctions are to be used at all, the need to be real, not the tokenism of tuesday's you cannot. do you -- tuesday's u.k.
announcement. do you think that is a fair curtis is a? -- fair criticism? andrew: i do not think the intended to be that. had there been a slightly more obvious situation, putin is not just going for what he already possesses in eastern ukraine, but he was going for the whole of that district, which would be 2/3 bigger, he would have been fiercer. i personally would have wished for him to come in much more fierce that he did. kailey: so if sanctions aren't necessarily going to do the job, if they were not fierce enough, can diplomacy do anything further from here, or have we reached the limits of what diplomatic efforts can do? andrew: i don't know because it is guesswork as to what is in
putin's head. but i think he's not even thinking about diplomacy now. his aim is obviously to get control of ukraine and as firm a way as possible. if you do not listen to his speech on the 20th, it was pretty crazy and some of the things he said, and totally untrue. now you're going stories like the ukraine is making nuclear weapons. i don't think he's going to stop here. dani: is what you are describing a different putin then we saw in 2014 with crimea, in terms of his advisors, his intentions? do we need to reevaluate how we look at putin and his intentions? andrew: yes. it is quite, when people have been in the job for a long time for them to change. it is quite common for someone like putin, who has been very frustrated with the refusal of ukraine ever to come under his
control over the last 20 years to find this particularly exasperating. i don't think he's got a very good way of making judgment. he does not have a circle of genuine advisors. he has one or two people who he needs a lot. most of the time he is isolated from the wider audience, if you like. kailey: obviously vladimir putin has his opinions and what he wants. even if the situation does not devolve further in this particular episode, is this going to be a perpetual semi crisis so long as he is the one holding power in russia? andrew: yes. kailey: so what is the response to that? if this is a perpetual conflict, what does the west do about that? andrew: we have to be as stand up as much as we can for ukraine
to make sure they are adequately armed, that they feel supported by us. it is not just a matter of ukraine. you also have to think of poland and the baltic states because they are in the front line as well. putin thinks they are weak and the rest of us are also weakened in supporting them. he will be tempted to see if there are any other fruit to pick. but the main target is ukraine. dani: how united would you say the west is right now in response to russia? andrew: i think it is more united than putin expected, and a bit more united than i expected. there has been temptation for almost everybody of a senior-level rippers and thing a major country to come up with their own solution, and that is divisive. and that would convey the impression to putin that the alliance is not what it should be because he thinks, and
generally thinks all russians think the thing into alliance is governed by the rules of the united states because in the warsaw pact, it was governed essentially by the rules of moscow, or if they didn't obey the rules of moscow, they got themselves invaded. kailey: the u.s. has put on a more united front. i wonder how you view potentially the view from other adversaries, the likes of china. how do using this changes the cap relations for them and their perception of western strength? andrew: if you are talking about taiwan, which i assume is in your mind, it is a very different situation because you got the sea in between. it makes it more easy to bring force if the west is so
demanded. i also think the chinese are a little bit worried by the way putin is behaving because to them, it hasn't actually particularly thought through or connected. so they are giving the support, but not very enthusiastic support, i would say. dani: thank you so much for giving some of your perspective and insight. that us are andrew -- that is sir andrew wood. later we will have an interview at 3:30 p.m. new york time, 8:30 p.m. in london. we have been asking the experts whether russia is what is driving the risk rally or risk assets going the other direction today. we will talk with the chief european equity strategist at morgan stanley, graham secker,. this is bloomberg. ♪
♪ >> the way i think about it is this. we've got two-sided risks. we've got an upside sort of risk which now come from two things. one, as we were discussing a few minutes ago, second round effects and wage price. unfortunately i think we've also now got an upside risk on financial prices from worse things happening. dani: the boe's andrew bailey on
risks from ukraine. we are joined now by graham secker, chief european equity strategist at morgan stanley. thank you for joining us. you are joining us on the day when this market is getting punched around from russia headline to russia headline, now heading to losses in both u.s. and european stocks. how much is your outlook on this european equity market and punched around by the latest headlines? graham: it creates near-term uncertainty broadly around equity risk premia and valuation, but for us at this stage, we are not really thinking of changing our fundamental outlook. the economic and barman we are seeing right now is actually quite good. what we are seeing coming out of europe is very encouraging data around the pmi's, other business surveys as well, so this is definitely a period of high short-term uncertainty which can weigh on equities, but it is too
soon to say it is going to have a meaningful detrimental impact if we can about the earnings outlook for european companies as we look forward over the next two quarters. graham: the eurozone -- kailey: the euro is already experiencing a downturn. do you think europe can still reach reward even with geopolitical uncertainties hanging over its head? graham: one of the things we have observed over the last few weeks which is quite unusual is that europe is not really reacting negatively to the risk off situation within russian assets. i think in times gone by, europe would have been a lot weaker, but europe has been performing quite resilient over the last few weeks. so assuming we don't get a material escalation, i think what we are seeing at the moment
is that these near-term uncertainties perhaps are discouraging global investors from putting even more money into europe, but we don't think it is actually causing people to take money out of europe at this stage. for that to happen, i think it would have to get materially worse. one of the other observations i would make is that although european gas prices have started to go up again, they are a long way below the levels we saw at the highest in december, so things are not as bad yet on the gas and energy front as they could be. dani: i'm going to keep playing devils advocate with you, so apologies in advance for challenging you here, but i do wonder what you make of credit. i know you look at equity, but i wonder when you look at european investment grade credit spreads start to widen 33 basis points, so far this year, at what point does that negative sentiment start to seep in and become a problem for the broader equity market? graham: i think we've got some way to go from that perspective
if you thing about the valuation on credit or government bonds. equities still look really cheap versus other asset classes. it is totally logical in my mind that if central banks reduce their liquidy support, asset valuations will weaken. but we've got to take a step back and remove where we come from. if you come from credit spreads in europe or the u.s., it has never been tighter than those we have seen over the last year or so. credit was arguably the biggest beneficiary for multi-qe programs, so as that starts to get unwound, credit is going to weaken. i think the question is, is credit we getting because it needs to reset its valuation lower, or is it telling us that there's a coming default risk? i would say what we are seeing now is credit is just moving from being overvalued to a level of valuation which isn't stretched as opposed to being an
outright negative sign in terms of needing to assume lower p/e ratios for equity markets. kailey: on the subject, have you seen any in the equity market that you now view as buying opportunities? graham: we are getting quite close to that on the wider european index because although it has performed quite well this year relative to other market, we have seen equities struggle a little bit. the earnings environment has been very good. so ratios are actually coming down, so we are now looking around 14 times. if i look at the s&p, we are still at 20. 14 times in my eyes is really beginning to get quite low. you go about 30 years, i don't think we are necessarily at the level where we would pound the table and say you must add risk to european equities today. but if we fell another 5%, 6%,
7%, 8%, i would consider that an attractive entry point. dani: are you feeling more positive about equities, european companies, and their ability to navigate supply shock as we look towards another potential supply shock with russia? has the news gotten better on the front? graham: the earnings season has been quite strong. we actually had the best ever earnings season in terms of the number of european companies beating sales estimates. not earnings estimates, but sales estimates. earnings estimates were still quite good. there is a bit of margin pressure, but we think it is relatively complained -- relatively contained. i think for now it is definitely manageable. i'm actually more worried about margins in the u.s.. you have a hotter labor market, higher inflation.
in europe at this stage, low inflation is rising and higher than it has been, and it is still not particularly high relative to what we see elsewhere, so for me, this year is a story of corporate basically maintaining the margins they achieved through the recovery in 2021, but they are not giving it back. where we are concerned probably is as we go into 2023 and the growth outlook starts to slow down. but for now, i think there is enough overall demand for companies to be able to continue to perform quite well. kailey: thank you so much to graham secker, chief european equity strategist at morgan stanley. this is bloomberg.
this has to do the energy sector mostly living in the u.k. oil moving higher, energy, net gas moving higher, helping the commodities sector here. elsewhere, we are about to end the day and declines. both the dax and the cac 40 down. more exposure to russia here in the higher beta assets, and also getting some ecb speak as well. kailey: we are hearing from a member of the governing council, saying that the ecb will remain vigilant and will decide on its options, but gradualism is key. he also said the ecb cannot rule out left off conditions met earlier, so we will continue to monitor those were marks and talk more about the ecb and how it is looking at risky business from banks in russia, asking lenders to stress test them selves. this is bloomberg. ♪
kailey: what started as gains now deteriorating into losses. italy down .3%. we got headlines about ukraine and cyberattacks as well as the eu emergency summit, all of that sending equities down further. ukraine russia risk still present. you see those big green spaces, the russia equity market is closed for their equivalent of veterans day. one of the few indices to fare better is the ftse 100. it is due to oil and gas. looking at the stoxx 600 come you can see how quickly sentiment changed about an hour to go until the close, we saw sharp downdraft into the end of equity sessions. it shows how fragile any of these buy the dips are in this equity market.
when it comes to the grr screen, the worst-performing way of technology, we have banks, we have retail. a wide range of different types of sectors. most of them are higher beta. interesting to look at banks. at the top you have more of the safety type names, food, beverage, tobacco. auto and parts did well. kailey spoke with slant us. chemicals, media, those are outperforming. you get a risk off safety play to end the day. let me bring you individual stocks. one of the best gainers was the dutch owner of pete's coffee, surging 14%. not only did they beat on their earnings but they said if inflation continues to keep up they will charge more for your cup of coffee and they are convinced you will pay more. margin forecast helping them out. barclays out with earnings, a
record number from them. that help them up 3.3%, also naming a new cfo. it was all about dealmaking of the british bank. unicredit started the day higher and started to deteriorate as we went into the close. that ended lower by about .5%. the ecb announcing they will stress test european banks for their exposure to russia and there's -- and should there be any invasion unicredit along with other banks stance of the top of the list for those web the most exposure to russia and eastern europe. kailey: we want to dig more into that story because the ecb is looking to assess risks to liquidity, to trading and currency position, but also the bank's ability to keep operations running should there be any escalation in the conflict. let's get more from tom metcalf, bloomberg's reporter who leads finance conference for the u.k.. what else do we know about what the ecb is looking for banks to detail them?
tom: they are looking for that exposure, the idea that if the situation does deteriorate, how much of their loan will be on the hook. the general message we have seen so far is the spread is fairly spread out stop there is not just one bank with 90% of the exposure. bringing it into the u.k. we've seen comments from executives at the bank of england saying we do not see the u.k. banking sector exposure to ukraine as being particularly concerning. kailey: have international banks been successful and dialing back their exposure? have we seen those types of moves? not just in years past but recently as tension started to escalate? tom: we are in a lucky position and it pulls back. ukraine has never been a growth area. banks from citigroup to barclays in the u.k. are basically saying we are already quite well-positioned for this. they are not going in any harder. kailey: how do banks get ready
to position around potential sanctions and the way it can impact the flow of money transactions they can do with russia? who is likely to face the greatest challenge in that? tom: i think the big listed banks are all pretty comfortable with their position. not expecting any kind of impact on their business. household names, do not think you will see too much there. what is likely to hit in the city of london is a massive ecosystem of smaller wealth managers and maybe the property side of names, do not think you will see too much there. things if russian oligarchs start pulling out stop it is less likely to be seen in the case of massive mega caps like hsbc or barclays. dani: you also had earnings out from the british bank. banking fees rising in the fourth quarter. this the question that always comes up when you see good results, can it last? tom: that is a good question for 2022. yesterday we had hsbc saying we
are worried about q1. barclays had results pointing out the shares are up. cap and the dealmakers continue the performance where you have a strong comparative in berkeley saying nice things about digitization and keeping costs lower. on the trading side, we are not going back to 2021. it looks like a tough beat ahead. kailey: for the dealmakers to deliver you have to have the dealmakers. a big story is about goldman sachs not just giving you bonuses to keep you there, but also may be retaliate if you choose delete -- also may be retaliating if you choose to leave the bank. are those persistent costs? what kind of commentary will we get from executives? tom: is the usual stuff about we need to pay up to keep our best people. the 23% sounds massive to most folks but for many it is not even the best of the earnings season. jp morgan putting in bigger
numbers. the goldman story was fascinating. traditionally banks have moved back from restricting staff. now it seems goldman is increasingly saying if you move anywhere we will make that quite tough for you because we are trying to stop this outflow of staff. dani: the character of bonuses now the stick of you will lose out if you move. tom, thank you on barclays. let's deck -- let's check where european stocks have settled. it is the story of concerns of geopolitics reversing an already fragile rally. at one point we were up nearly 1%. now we are ending the session lower. the ftse faring better and ending higher thanks to the heavy exposure to oil and gas and now dax down .4%. kailey: let's talk more about what is moving these markets. that is geopolitics.
ritika: this is the european close. i am ritika gupta and you're looking at a live shot of the principal room. tune into bloomberg's monthly series chief future officer, this month featuring the macy's cfo. this is bloomberg. keeping you up-to-date with news from around the world, here is the first word news. in canada banks frozen $6.1 million in just over 200 accounts under emergency powers meant to end the truckers protest according to a government official. justin trudeau invoke the powers to put a funding to protest leaders. in hong kong the government is trying to offset the toll the
splitting virus outbreak has taken on the economy. authorities have also earmarked more than $2.5 billion for other antivirus needs. hong kong's economic growth is expected to slow to as little as 2% this year after growing 6.4% in 2021. 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 am ritika gupta. this is bloomberg. kailey: thank you. rio tinto group has established itself as one of the big winners in the global economic rebound. the world's second-largest miner announced another massive dividend. >> we have started the year well but i am not in the game of predicting commodity prices. they are very volatile. in the short term there is good demand from china and longer-term for a company like rio tinto, the metals and
minerals we are producing are being helped by the energy transition. kailey: let's talk more about where commodity prices are going for the metals, for the oils, the big question is what impact does the ukraine crisis have on that trajectory? joining us is mike mcglone of bloomberg intelligence. when you look at the geopolitical situation and commodities around record highs, how much fuel could be added to the fire? mike: that is the only thing that matters in commodities, what is happening with russia and ukraine and prices are very high for a good reason. the question is will it be an invasion or a takeover. we are strength realize vladimir putin has been working on this for a decade, it looks like a be more of a takeover. if that is the case than crude oil could be getting near a peak. you have to focus on the main takeaway, it will probably be a
major boom for north american commodity producers. right now because of this bid, crude oil is probably double the cost of u.s. shale production. lng, the u.s. is now the world's largest exporter and the cost of producing natural guys is about half the price. you look at agriculture, the u.s. is the world's largest agriculture producer. if you include north america, total liquid fuel production in north america will probably exceed consumption by 14% to 15% and higher prices are boosting that and russia is helping that happen. where they go it is hard to say. let's hope it is not too violent. dani: i feel for the gold bugs who continue to have their dreams dashed over rally. you see long-term outperformance. why? mike: absolutely.
the issue with gold is it sustained yet? i thought that a while ago and i still think that. to meet as a matter of time gold breaks out above $2000 in crosses that rubicon and never looks back. that is raisi the gold set up. it has -- that is where i see the gold set up. it has some competition from bitcoin. it will end up being one of the best-performing commodities. unlimited supply is priced in. if you look versus copper and crude oil, it is an upward bias. once we get back -- once we get past this period of invasion or takeover, i think gold will do well. i think this might tilt us towards a recession. spiking energy and stock market starting to head lower. that is very good for gold. look at the u.s. long bond yield. once that starts heading back down, very good for gold prices. dani: one golden lining if you
will. mike, thank you so much. mike mcglone putting up with my horrible ponds. on a more serious -- my horrible puns. i more serious doubt there is concerned ukraine rises good lead to higher gas prices in the u.k.. we welcome neil kenward. ofgem is the u.k. energy regulator. thank you for joining us. a little bit ago your boss warned the russian invasion and potential sanctions that raise fuel prices would ultimately feet through the customers. we start to see the first round of sanctions. how convinced are you we will see higher fuel prices that feed through to the customer? neil: we keep a close eye on energy markets, as you can imagine, and we recognize left few months have already seen prices rise.
our price cap suspends the impact of that for domestic consumers but nondomestic consumers are already paying higher bills. what we do not know is how energy prices will move going forward. there is a lot of uncertainty in the market you and your viewers will fully appreciate. what ofgem does is try to ensure the markets continue to function well in their prices exist companies and households to make good use of. kailey: you think the market is functioning well given the energy crisis unfolding not just in the u.k. or europe, given the number of suppliers who have gone bust. is that a well-functioning environment? neil: the number of suppliers were caught out by the rising energy prices and they went up four full in the space of a year. in an open market like we have got that will put some companies under a lot of pressure if they have not hedged fully in advance. that is what happened. what ofgem has been doing is
making sure consumers are protected. dani: you think in the long term regulations or anything you can do to help suppliers and how they function needs to change to prevent anything like this going forward? neil: there's a whole raft of things we have already started to do to improve the robustness of the sector and the resilience. i do not think anyone expected this level energy price rise, but we are going to make sure the companies are more resilient and more robust in the future. so we do not see this level of exits from the market and consumers remain protected. kailey: since you also are the director of de-carbonization, we are focused on oil and gas and potential disruption, but something else that has been a factor is the relative inability of renewables to provide an adequate backstop for when we see disruption to the oil and
gas flow. i'm wondering how you view that and how that acceleration where that transition can be accelerated? neil: you are right. we are in a transition in only part of the way through that. in the u.k. the level of renewable generation has been rocketing and it is up to half of the total. that means we are dependent on gas, for tickly when the wind is not blowing and the sun is not shining. when we have the high gas prices they start to pay back the consumer because they are sold at fixed prices. when market prices are above that they start to pay back. as we expand the level of renewables, that will make the system cheaper and that is really important. increasingly low carbon sources for when the line does not blow. dani: how far away you think we
are from that level you describe so overall the energy prices come down? neil: we are already seeing an impact. even this year there'll will be a small payback from renewable contracts. that is starting to happen. it is relatively small because either the contracts that were signed a few years ago and only just coming into production now. the country continues to build more wind power, more solar power. we will see that impact grow over the coming decade. kailey: this may be an unfair question, but how long you think it will take for prices to open vote normalized -- prices to "normalize"? neil: what we are sure making sure his we are prepared for any scenario. there are some scenarios where prices climb further, there also scenarios in which prices
normalize over the next six to 12 months, potentially. we need to be ready for that as well. while that would be hugely welcome for consumers it can also destabilize suppliers who've already hedged forward at today's high prices. we are making sure we have a good toolkit in place that can keep the market stable and resilient no matter what happens to prices. kailey: preparing for all scenarios. thanks so much to neil kenward of ofgem. appreciate your time. this is bloomberg. ♪
authorities say demand is now searching but bookings into the u.k. remain sluggish. aston martin expects demands for the sub to help balance out delays for the supercar. the british carmaker is counting on what it calls meaningful growth after the market was rolling out new variants of the dbx, including one build is the most powerful sub. -- the most powerful suv. the maker of cheap expects another -- of jeep expects another year of double-digit returns and says will get past labor shortages and supply issues. we spoke to the ceo. >> our customers are willing to pay for the additional value and the additional to love our products. you can see that on the margins. you can see the 11.8% record is related to that premium. ritika: by one measure north american business brought in almost two thirds of the company's profit.
that is your latest business flash. kailey: risk assets are lower. kriti gupta is looking at where markets are trading. the bad news is we are off the highs. the good news is we are off the lows. kriti: you're seeing this push and pull between gains and losses and a lot has to do with geopolitical risk. i think the best example will be oil. that is your classic geopolitical proxy. you can see that despite of the ukraine headlines, but you also see the unwind of that freight. a lot of traders waiting the possibility of more iranian supply on the market. a tug-of-war not unlike what you are seeing in the stock market, tech companies are your leading decliners. big tech, apple, tesla, nvidia are lower.
if you look at cybersecurity stocks, that geopolitical risk at the forefront pushing those stocks higher. not necessarily a straight play when it comes to all of the stocks in all the commodities. dani: that is bloomberg's kriti gupta. let's get everyone set up for what we are expecting next 24 hours. u.s. state department briefing at 2:00 eastern time. russia-ukraine will be the central focus. also the white house briefing at 2:30. we also have earnings on deck, we have ebay. then we have san francisco fed president mary daly who will be speaking at 3:30 p.m. eastern time the fed speak continues on. kailey: it will continue throughout the week. tomorrow the eu will be holding emergency summit on ukraine. we will get new home sales data. on the earnings front, discovery and carvana in the u.s..
deutsche telekom will be reporting in europe. alibaba also reports tomorrow before the opening valve in the u.s. -- before the opening bell in the u.s.. that is deafly going to be one to watch. dani: they are expected to have a 60% drop in quarterly profits. alibaba has been a fascinating story. a lot of concern around ant and regulation. kailey: the regulatory story in china still front and center. ukraine is front and center on the geopolitical front. peter westmacott will be joining "balance of power" with david westin to discuss. the cable is on london dab digital. this is bloomberg. ♪
it will be extraordinarily difficult to justify sending troops. >> to the world of business -- >> we have a lot of work to get the new tunnel in. this program is unprecedented. a multibillion-dollar program. >> this is "balance of power" with david westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." president biden announced a first round of sanctions against russia yesterday with the prospect of more to come depending on what vladimir putin does next in ukraine. with the view from washington we welcome joe mathieu, host of sound on on bloomberg radio every day of the week. how does it look from washington? joe: after those sections were announced this white house is feeling pressure from allies on capitol hill to our a