tv Bloomberg Markets Americas Bloomberg April 5, 2022 10:00am-11:00am EDT
>> 30 minutes into the trading day on tuesday, april 5. you're the top stories we are following. target, kohl's and credit will phase out -- the target to phase out russian coal. russia could no longer make dollar bond payments at american banks. if use that matter. more on the war in ukraine and its economic impact with explicit interviews with an advisor to president zelenskyy and esther george. twitter names elon musk to the board of directors a day after news broke of his 9.2% stake in the company. musk is looking forward to meeting improvements which might include an edit button. i am kailey leinz with guy johnson in london.
welcome to bloomberg markets. the focus is on geopolitics today with president zelenskyy set to address the un security council. guy: absolutely. we will take that live later on and hear from esther george. the data are important and we are getting one of the more important pieces right now. let's dig into the details. the headline, ism services rising. pretty decent number. the headline number is good. the employment index is 54. strong employment story coming through in terms of the prices paid. 83.8, that is a punchy number. 83.1 the prior number. the service side of the economy looks good. obviously this is going to be
something we need to factor into our thinking and debate around whether or not we should worry more about inflation or a growth slowed down is one that is being fought fairly hard of the moment. but this data points to a fairly resilient services side of the economy and that is a big part of the u.s. economy. how should investors be reading this? how should they read the debates around the fed? how should they think about portfolios? liz young joining us now to try to answer that question. talk about how investors should be looking at the world in front of them right now. should they be worried about a growth slowed down? should they be worried about inflation? should they be worried about both of those things at the same time and if so, how should they be positioning? liz: i think the question you posed about which one of those is more important is probably the best one to answer. i think the more important issue is inflation and the fed clearly agrees with me on that. if you think about where
inflation is right now, obviously at really high levels, the highest in 40 years. given the geopolitical tensions that are continuing their is likely to be lingering supply effects. that inflation issue is not going anywhere anytime soon. if we did not do anything about it, that would send us into an economic contraction. we do have to attack it and unfortunately, there's going to be collateral damage when you try to control prices. some of that collateral damage is a growth slowdown because tried to control prices will affect demand and inflation can cool off. that does not mean we have to go into a recession. i admit the landing strip for the fed is narrow, but it is possible they get the plane on the runway. kailey: that is for the broader economy which potentially does not have to go into contraction. on the earnings front given those inflationary headwinds,
you have to be able to exercise pricing power if you are a company to pass on costs and retain margins. are we getting to a point where it will be a question if companies have the ability to do that? liz: we are. we have already seen a little bit of it. we have seen companies increase prices and the ones that have done it have not necessarily affected the customer base so that is good news. the issue with increasing prices and passing it along is that becomes a permanent inflationary pressure. once a company passes that through the consumers are not good to roll it back when we see cpi come down. you will not see companies rollback subscription costs because cpi came down 1% over month over month. that becomes sticky inflation. as we get later into the economic cycle that could be something that takes a bigger bite out of consumers' money. thinking about right now, the consumer is in great shape. $2 trillion on balance sheets
waiting to be deployed, plenty of demand, we have a very tight labor market. the consumer essay from that perspective. but if we are at a bleed rate, which i have seen estimates of $50 billion a month in cash, at some point that runs out and it brings us down to pre-pandemic levels. that inflation will take a bite as companies pass through. guy: the fed is on track to tighten. the expectation is we get 50. lael brainard is speaking right now. the fed will shrink the balance sheet at a rapid pace and begin doing so as soon may. given the language we are getting from the fed, are you surprised how well equities are doing right now? liz: i mean, i am surprised at how strong the rally has been since that first hike. i did expect some bounce back after that first hike because the anticipation of an event is usually worse than the event itself.
the lead up was very volatile. we did not know what to expect. but this fed has been clear as a bell about what we should expect from them. they did what we expected that first time in march and now they are being even more clear about 50 in may. as we move toward may stocks can get expectations in line about what we might see. i actually think, and right now the market is pricing another eight hikes at 25 basis points each, i actually think if inflation cools off and they go after it with a heavy hammer in may and june, you might end up seeing a more doveish pivot from the fed which will field doveish if they do not get eight by the end of the year. and then you have more of a tailwind. kailey: we have to leave it there but great to get your thoughts. liz young, sophia head of investment strategy. -- sofi head of investment strategy.
they will shrink the balance sheet at a rapid pace as soon as may. the fed is prepared to take stronger action if warranted and hikes will get policy to neutral this year. we have heard from brainerd. next, we hear from someone else. the federal reserve is releasing minutes from its latest decision. we talk inflation, interest rates, and get the take of esther george, president of the kansas city fed. that's next. this is bloomberg. ♪
guy: welcome to our bloomberg tv audience and radio listeners. joining us from kansas city , missouri is policy corresponded mike mckee. standing by with fed president esther george. over to you. mike: thank you for joining us today. nice to be able to do an interview in person. esther: nice to see you. mike: you called for the fed to be measured and cautious in its policy moves. does that mean you would be against larger moves for the time being?
would you dissent against 50 basis points on march 4? esther: the way i think about removing accommodations is we have two instruments, short-term policy rates and a very large balance sheet affecting the amount of accommodation in the economy. it will take thinking about both of those things, i think, as we come to the main meeting to decide what is the appropriate pace, the appropriate amount of policy decision? mike: there are a lot of people on wall street who say the fed is behind the curve and you have got to go 50 because you're going to lose control of inflation if you don't. esther: we know this policy is as accommodative as at any time we have inflation this i, labor markets this type. policy has to be removed. but you have to do that in the context of having highly negative real rates, a $9 trillion balance sheet, and thinking how that combination is
going to flow through to the economy. we have to be very deliberate and intentional as we remove this accommodation. mike: let me rephrase the first question. would you support 50 if that is what the majority wants? esther: i think 50 will be an option along with other things. i am focused on thinking about how the balance sheet moves in conjunction with policy rate increases. mike: lael brainard in line to be vice chair of the fed said this morning she expects the balance sheet to shrink more rapidly than in previous recoveries with significantly larger caps and a much shorter time to phase those in. is that is where the fed is going? esther: when you compare this cycle to last time we were reducing the balance sheet and did not go far because of the need for reserves and the decision around that. when you look today at where the balance sheet is in the conditions in which we will be doing that, i think it easily
argues for going faster and moving along at a quicker pace than we did before. we have a ways to go to get this accommodation out of the economy. mike: monthly caps of $100 billion sound realistic? esther: we are talking about what the right approach would be relative to last time. again, we are doing that in the context of looking at the size of the balance sheet and the conditions in the economy which will likely warrant doing more in going faster. mike: what is your anticipated impact of reducing the balance sheet in terms of a rough equivalent to basis points in a rate move? esther: i think it is an import question. we often focus on the benefits going in in terms of how it pulls duration out of the market. i have been looking at the estimates that go all the way to 150 basis points on the longer-term rates. wherever that is i think there is clearly going to be some adjustment that takes place, both in asset markets as well as
long-term rates. when i look at the yield curve i am looking at that issue relative to that balance sheet and what effect it is having a long-term rates. less so around the conversations i whether it is predicting a recession. mike: you are looking at it in terms of the fed pushing down on the longer rate end. esther: right. i think that exists today. we have $9 trillion sitting there. it is having a downward pressure on the longer-term rates. mike: what do you think the outlook for the economy is? a lot of people are saying, given the war underway, given the possibility of covid coming back, and then the fed removing accommodation and may be becoming tight, that the economy is likely to go into recession. some people say the fed will do something until they break something. how do you respond to that? esther: right now, when we look at the outlook for the economy i think we are going to see gdp
step down because fiscal policy is waning relative to the money that went out during the pandemic. rates are going to be rising in that sense but if you look at how household balance sheets are balanced, consumer demand, it remains strong. one of the jobs will be to bring that demand and supply and better balance as we go forward. mike: to get demand down you raise interest rates and demand falls, production falls, and on the planet rises. how far you willing to let unemployment rise to bring down inflation? esther: i think that is one of the things we are going to have to watch. we talk about the neutral rate but for me watching how economic activity unfolds, so, as we raise rates and lower the balance sheet those are going to move through the economy with. . l what you want to wat -- la g and what you want to watch is how much traction are you getting with rate increases?
i think how consumption has skewed toward durable. you might say higher interest rates will get more traction. we have a lot of liquidity, households that have capacity to spend because of their excess savings. may it will take more rate increases. i think as we go through that it is going to be a function of making sure inflation comes down and accommodation comes down. mike: lael brainard said today she expects accommodation of rate moves in the balance sheet would take you to neutral by the end of the year. do you get that high by the end of the year do you think? do you need to go above neutral to bring inflation down? esther: i think if you look at where we are today you might say, we will have to go above neutral to bring inflation down. but there is a long time between now and the end of the year to see how the economy unfolds. that is why i have argued for being monitoring how the economy is unfolding so we are able to see what impact we are having as
we go through this process as opposed to racing toward some particular number that we think we need to get to. mike: in terms of the balance sheet, you are the banking person. does the leverage ratio have to change in order to make that work so banks can take on more on the balance sheets? esther: i would not argue for that because the supplemental leverage ratio is designed to be a strengthening factor. the positions these large global institutions to withstand shocks, that was the design. we went through a period in 2008 and 2009 where the economy suffered because we did not have capital strength. i would not argue for that. mike: let's talk about what ceos are telling you. we cannot find workers, we have to pay up and we have pricing power. is any of that started to change? esther: we are still hearing that. we heard as early as the march board meeting and advisory
councils we had supply chains are still a big problem for them. in some cases not getting better, may be getting worse as we have seen through the problems with the war in ukraine, some of the issues with china and their zero covid policy. that continues to be a pain point. they were able to pass along their costs at this point. i have not seen a lot of improvement yet in that. they are adjusting though and i think that is an important thing to think about. firms figure out how to adjust to the circumstances they are in. they will deploy more technology, find more innovative ways to meet the demand. mike: one thing the fed wants to do is break a cycle of ongoing price increases. our ceos telling you they think they are going to continue to raise prices? are you going to have to do some work there? esther: i think right now they
see the ability to pass on those prices. i think longer-term they are looking to see some of the same factors i have mentioned. whether the supply chain sees up, whether demand comes down in a way that allows supply disruptions to work their way through. i think we are watching carefully because we know from looking at consumer sentiment people hate high inflation and that has its own effects on the economy. mike: today i am told it is your 40th anniversary at the federal reserve which meant you come in when paul volcker was there. how would you compare that in terms of the uncertainty about monetary policy at how the economy is developing and the pressure the fed is under? esther: when i started at the kansas city fed 40 years ago we had very similar inflation rates. we were coming off a long period of expectations being high and
problems with wage price spirals. today, i view as different in this sense only that we have had a different kind of shock. it has been a year. we have a commitment to get back to an inflation target that i hope reassures the public of our result to do that. and, in that sense, i think different. the pain you feel today around high inflation not much different. mike: what about the pain fed officials feel about try to deal with it? esther: it is a big issue. i don't think anyone underestimates the task ahead of us. to try to bring inflation back to our target, that is our mandate. to do that and ensure there is a steady expansion in the economy. that is how we achieve our full employment mandate, that is how having low prices will help assure that for the economy. mike: last question, do you have a message for tom barker today?
his district includes the university of north carolina. esther: well, it was a great game. i am glad it turned the way it did. great comeback and congratulations to both teams for how hard they played. mike: does it improve the economy here to have the winning team? esther: i think it improves sentiment. people are pretty happy about the win. mike: esther george, thank you. president of the federal reserve bank of kansas city which includes the university of kansas at lawrence who won the national championship last night. back to you. guy: mike mckee with kansas city fed president, very happy fed president, esther george. thank you very much indeed to both of you. this is bloomberg. ♪
business flash. i am ritika gupta. elon musk revealed he had taken a 9.2% stake in twitter. the world's richest person will not own more than 14.9% of twitter during his time on the board and for 90 days after he leaves. the twitter ceo says musk is a passionate believer in the company and an intense critic. amazon buying dozens of rocket launchers to deploy satellites for its high-speed internet service. they will buy as many as 83 launchers from blue origin and united auto alliance. it is required to launch half of the satellites by july 2026. pressures on the supply chain have risen to a record. the logistics managers index for a third straight month found to interlink warehouses
facing inventory costs. there try to figure out if they own the board. that is your latest business flash. kailey: thank you. we are hearing from federal reserve speakers in the market is reacting. we heard michael mckee's interview with esther george. she said 50 basis points needs to be considered but we heard from lael brainard talking about may as well. she said the fed will shrink the balance sheet at a rapid pace as soon as may and went on to say we will get the policy neutral this year. that reaction showing up in the treasury market. the 10 year yield up 13 basis points trading at 2.52%. you are seeing a steepening of the yield curve. no longer inverted when it comes to the twos-tens. it is a bigger move on the long and then the short end. we are keeping an eye on
geopolitics. in a few minutes we will get a preview of the ukrainian president zelenskyy's address to the un security council. we are awaiting his remarks as well at that security council meeting. the under secretary general is speaking but we will bring you president zelenskyy's remarks as soon as they come. guy: absolutely. brilliant to hear what he has to say given with the latest pictures have shown happening in his country. how forceful will he be? we have seen additional sanctions put into place by the eu today. what comes next? we will hear about what comes next next. this is bloomberg. ♪
trading session. the market responds. >> earlier we were looking at the increase paid now are looking at a decline. kaylee referring to that exclusive interview by michael mckee with the kansas city fed president who basically indicated the fed could start draining the balance sheet as early as may. it's not a huge selloff. where we do have deeper declines , china tech of course. a little bit of coolness there down 3.4%. can't wait to look at the chart of been showing. higher yields not great. it brings into question valuation. the spread where it's been -- where it extends a little bit steeper. we are now no longer inverted. many expecting the inversion to stay. so many different moving pieces.
we've had this ahead of brainard's comments. the dow jones down 9.1%, the lowest level in quite some time. the worst five days since march of 2020. that's the degree of selling we've been seeing. showing weakness in trucking. and the comment from brainard that if liquidity comes out of the system, this is especially sensitive in the economy. this is a leading sector. but see whether or not the signals more for the broader market. strength has ever them to do with: fertilizer. we look at mosaic, we have nice gains here as the eu has banned all imports of immaterial used in fertilizer from belarus. the e.u. is considering a ban
against russian coal, coal and highest since 2008 back above $100 per ton. you can see these coal companies are really on fire. guy: absolutely. thank you very much indeed. the fed is certainly having a material impact on what's happening. first we have the brainard comments and then mike mckee's interview with mr. george in kansas city. both being watched carefully by the market. we are awaiting president zelenskyy's speech to the u.n. security council. we think it may start in the next few minutes. when it happens we will bring it to you. it will be via video link. let's talk about what could be in that speech. one of president zelenskyy's top aides joins us now with maria tadeo in brussels.
maria: we are waiting for president zelenskyy, a relevant after pictures from bucha. graphic pictures which ukraine says part of war crimes committed in the country. we are joined by one of his aides, thank you for joining me. of course the idea here was that we would get a cease fire and talks were continuing, but on saturday we saw those terrible pictures and i guess the obvious question now is where do you go from here? >> definitely after the world has seen these acts of brutality and violence against the ukrainian people. the war has changed i think. the world will never tolerate russian armed forces commanded
by russian politicians in ukraine. they want ukrainians to be devastated and wiped out. which will never happen. so currently the main task for the international community is to bring those responsible for these atrocities to immediate international justice. that's why my president has announced a special task force in ukraine which will deal with war crimes, bringing them to relevant institutions and supervising the process of bringing those responsible to justice. this done with our partners worldwide to help us with the relevant experts and experience, human rights protectors who know how to deal with this. this is not the first war in the world which has the atrocities
of their kind but it is probably the hardest and most difficult atrocities in the 21st century in europe near the capital of ukraine. those who are responsible should be brought to punishment and justice. >> russia based on what you told me. hitting ukraine and everything they stand for, i wonder at this point is there even a diplomatic way forward because i can imagine at this point it's difficult to sit at a table with russian counterparts and talk about a diplomatic solution to this. can you still have those talks? >>'s reaction wasn't really hard to speak after those atrocities with any russian official political representative. you have to understand that
examples of atrocities can be revealed later when they start to liberate other cities. we have to continue these diplomatic talks. the ukrainian delegation asked to talk with russian officials because we want to bring peace to our country. we want to establish conditions where those atrocities and barbaric acts and aggression could never happen neither against ukraine nor against any other european country. >> as you say these cannot happen again, but you mention the reality is there are places which already being see aged. is the city still in your control because there have been rumors online that russia is about to take it.
and when you look at the donbass k, how do you look at that. >> they are regrouping their forces, they are trying to insert more troops to the eastern part of ukraine. yes we absolutely understand there might be a city fight because they want to conquer all of that, not even the occupied part, but the rest and that's where they will concentrate their efforts. they probably need some symbolic victories that also can be a case. as far as the more you pull city is confirmed, just concerned, a part of the city is controlled by the armed forces of russia. atrocities are also going on there because the people are not
only killed by missiles, but they are deliberately forcefully deported to russia. children, women, civilians. >> i have to ask you, it's very clear now that ukraine will fight this until the end. it's clear when you look at the reaction of the people, but do you have the capabilities and are you ready to really find russia in the east to make sure perhaps they don't take donbass. >> definitely. we are also waging warfare, definitely there is a simple human reaction. but as far as the more you pull city is concerned -- the city is concerned, these territories are ukrainian and they will be under
can training -- ukrainian control. yes we need some time to take back the city. my president is in connection with military personnel and military commanders, so yes it is definitely ukrainian territory. no compromise. this -- >> i have to ask you also a final question before we hear from your president of the united nations. this meeting between your president and vladimir putin, many believe it will finally have to happen and is the only way to end this war. given everything you've seen, are we going to see this meeting happen ever? >> if you asked me several days ago i would say yes definitely,
currently i don't know what to answer. only the president himself knows the answer and last time i heard from him is it would be difficult for him to have such a meeting. >> thank you so much. the ukrainian president is asked for this, -- repeatedly. vladimir putin has until now refused to engage. back to you. guy: thank you very much indeed. speaking with the advisor president zelenskyy. he will shortly be speaking to the u.s. secured -- u.n. security council. when that happens we will bring it to you and provide some analysis as well. we are counting down to hearing from president zelenskyy. we will talk about the next phase of sanctions. russia will find it tougher to pay bond investors with dollars. the latest moves being made by the u.s. treasury as we await those comments from president
zelenskyy. this is bloomberg. i am not to take this break. president zelenskyy is starting. >> i think the members of the security council for this meeting. thank you for this opportunity. i am sure the representatives of the united nations member states will hear me today. yesterday i returned from our city which had been liberated from russian troops not far from kyiv. there is not a single crime that they would not commit there. the russian military surged and purposely killed anyone who served our country. they shot and killed women outside of their houses. they killed entire families, adults and children and they tried to burn the bodies. i am addressing you on behalf of the people who honor the memory of the deceased every single day
and the memory of the civilians who died who were shot and killed in the back of their head after being tortured. some of them were shot on the street and thrown into wells. so they died there and suffering. they were killed in their apartments, houses, civilians were crushed by tanks while sitting in their cars in the middle-of-the-road. they cut off limbs, cut their throats, women were raped and killed. >> the ukrainian president speaking at the united nations security council. we would like to warn the viewers that there is a chance of graphic and disturbing images. >> terrace to occupy some territories. and here it is done by a member of the united nations security council, destroying internal unity borders and taking the
right of more than a dozen countries who are self-determined and independent states. that's the consistent policy of destroying. they inflame warren deliberately lead them in such a way that killed as many regular civilians. they leave the country with a deploy their troops in ruins and filled with mass graves. and they support hatred at the level of the state and seek to export to other countries through their system of propaganda and political, -- political corruption. they promote a food crisis that could lead to famine in africa, asia and other countries and will surely end in large-scale political chaos in many countries, destroying their
domestic security. so where is the security council needs to guarantee, it's not there although there is a security council, where is the piece. where are those guarantees the united nations needs to guarantee. it is obvious the key institution which must ensure simply cannot work effectively. now the world can see what the russian military did while keeping the city under their occupation. but the world has yet to see what they've done in other occupied cities and regions of our country. geography might be variant, but cruelty is the same. crimes are the same and accountability must be inevitable. ladies and gentlemen i would
like to remind you of article one, chapter one of the u.n. charter. what is the purpose of our organization. the purpose is to maintain peace and make sure that peace is adhered to. these charges are violated literally starting with article one. if so, what is the point of all other articles? as a result of russia's actions in our country in ukraine, of the most terrible crimes of all time, they are being committed. russian troops are deliberately destroying ukrainian cities to ashes with artillery and airstrikes, they are delivering -- shooting at columns of civilians. they even deliberately blow up
shelters where civilians hide from airstrikes. they are deliberately creating conditions in the territories as many civilians as possible or kill there. they are massacring our city is only unfortunately one of many things they occupiers have been doing on our land for the port -- past 41 days and there are many more in similar cases where the world has get to learn the full truth. dozens of others, each of them is similar. i know and you know perfectly well what the representatives of russia will say in response to the accusations of these crimes. they have said it many times. the most significant was after the shooting down of the malaysian boeing by russian
forces or during the war in syria, they will blame everyone just to justify their own actions. they will say there are various versions and it's impossible to establish which one of those is true. they will even say the bodies of those kills -- killed and all videos are staged. but it is 2022 now. we have conclusive evidence paid there are satellite images and we can conduct full and transparent investigations. this is what we are interested in, maximum access and cooperation with international institutions. involvement of the international criminal court. i'm sure every member state of the u.n. should be interested in this. in order to punish once and for
all those who consider themselves privileged and believe that they can get away with anything. so to show all the other world criminals how they will be punished. if the biggest one is punished, then everybody is punished. russia's leadership feels like colonizers in ancient times they need our wealth, our people. they brought hundreds of thousands of our citizens to our country. those children, they continue to do so. russia wants to turn ukraine into silent slaves. the russian military are looting openly the city and villages there they have captured.
they are stealing everything starting with food, ending with earrings, gold earrings pulled out covered with blood. we are dealing with a state that is turning the veto in the un security council in the right to --. it allows them to go unpunished, destroying everything they can. if this continues, the countries will rely only on the power of their own arms to ensure their security and not on international law. not rely on international institutions. the united nations, are you ready to close up the u.n.? you think the time of
international law is gone. if your answer is no then you need to act immediately. the u.n. charter must be restored immediately paid the u.n. system must be reformed immediately so that this veto is not the right to die, that there is a fair representation in the security council of all regions of the world. being brought to peace immediately, determination needed. the massacre from syria to somalia, from afghanistan to yemen and libya, that should've have been stopped a long time ago. if tyranny had seen such a response to the war we had waged, it would have ceased to exist and peace would be guaranteed after it and the world would've changed for sure. and then perhaps there would not be war in my country.
our people against ukrainian people against our citizens. but the world watched and did not want to see either the occupation of crimea or the war against georgia or taking the entire -- from moldova, but the basis for other conflicts and wars at their borders. how to stop it, right away the russian military and those who gave them orders have to be brought to justice immediately for war crimes in ukraine. anyone who is given criminal orders and carried out them by killing our people will be brought before the tribunal which is similar to the nuremberg tribunals.
they have not escaped for crimes in world war ii. i would like to remind you that adolf eichmann also did not go unpunished. the main thing is today, it's time to transform the system of the united nations. therefore i propose to convene a global conference and we can do it here in kyiv in order to determine how we will reform the security system, how we will rely, how do we establish guarantee of requisition of borders and integrity, how we will assert the rule of international law. it is not clear the goals set in san francisco in 1945 for the creation of global security international organization has
not been achieved. and it's impossible to achieve them without reforms. we must do everything in our power onto the next generation and affect the u.n. with the ability to respond to security challenges and guarantee peace, prevent aggression and push aggressors to peace. have the ability to punish if the principles of peace are violated. there can be no more exceptions. everybody must be equal. all participants of international relations regardless of economic strength, a geographical area and individual ambition. the power of peace must become dominant. the power of justice and security as humanity has always dreamed of it. ukraine is ready to provide a platform for one of the newly
updated security systems and similar to the geneva office that deals with human rights. and in kyiv we can have an office that can prevent -- specialize in preventive measures to maintain peace. i would like to remind you of our peaceful mention when we ukrainian's evacuated from the country more than 1000 people at our own expense, it was a very difficult thing and ukraine came to their help, we took in people of different nationalities, ethnic groups, different faiths, u.s., canada, we did not look at who needed help, was it one of our own or somebody else, we helped all of them.
every time there was a need, everyone in the world would be confident that help would come. the world would be definitely safer. therefore ukraine has the moral right to propose a reform of the security system. we have proven we've helped others not only half -- in happy times but in dark times. now we need decisions from the security council for peace in ukraine. if you don't know how to make this decision. you can either remove russia as an aggressor and enforce a war so that they cannot block a decision about its own aggression and then do everything we can do to establish peace, the other option is show how we can reform or change to solve itself and
work for peace, or if there is no alternative and no option, then the next option would be dissolve yourself altogether. i know you can admit if there is nothing we can do besides conversation, ukraine needs peace, europe needs peace in the world needs peace. i would kindly ask you very much to watch this short video. please give us one more minute of your time. the video that we want to show that one country can violate rights and that's the result of being unpunished. if possible, please watch this video because it is impossible
to get everyone to our country and see it with their own eyes. thank you very much. [applause] >> of course we just heard from president volodymyr zelenskyy speaking to the un security council addressing the council and the addressing the power one of its councilmembers has. the victims killed in targeted
attacks and he said the world has seen with the russian military did but is yet to see what's happened in other occupied cities and regions of ukraine. that is one example the world has yet to learn of the full truth. he pushed for reform at the u.n. to guarantee peace, prevent aggression, reminding those members of article one chapter one of the u.n. charter which purpose is to maintain peace and make sure it is a key to. he said russia cannot block decisions about its own aggression or its own war. president zelenskyy was talking about a video there. it does not look like we will get those images so let's get some reaction from our washington correspondent downing d.c.. we know after what was shown, the u.s. pushed to get russia suspended from the u.n. human rights council. what conversation has there been
about its role on the security council. >> it is incredibly challenging because russia is a permanent member and they have a veto power. that's what president zelenskyy when addressing the security council was trying to get at. he said this veto right should not be a right to die. he really went into all the shortcomings that the u.n. he believes has laid out starting with article one saying you cannot ensure article one in peace than what is the entire point of the charter? he's calling for a full overhaul and how it operates. russia was recently the rotating president of the secured -- security council. it's difficult for ukraine to give this message when russia has that veto power. guy: linda thomas-greenfield, the u.s. ambassador to the united nations is speaking.
we will bring you the headlines as we hear what she has to say. what's next for the united states. a reaction from the european union. what's next in washington. >> they say they will -- we will see more sanctions. the president's national security advisor said they were consulting with european allies. so potentially it will be similar, mirror image of what we are seeing out of the european union. the big headline was coal and that's not no effect the united states, but they are tightening screws on some of the banks, right now vtb for europe was just d swift did. potentially there are more loopholes and of course overnight we had news at treasury making it much more difficult and complicated for russia. >> is there a sense at all that what the west
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