>> the countdown is on in europe. this is bloomberg markets, european close, with guy johnson and alix steel. we are heading into the end of the day here in europe. we are awaiting the fed. the price action looks like this. european equities are falling off into the end of the day. we are down by around .8%. the euro-dollar is catching a bit. keep an eye on italian yields. you want to pay attention to that, it is a key line in the sand. brent crude is definitely catching a bit. we are going to talk about this energy embargo the europeans are imposing on russia, focusing

clearly on oil. the hungarians are not quite sure. we will get the details in a minute. brent up nearly 4% today. kailey: we will get to the details on that oil story in a moment. you will wait for details until about three hours from now. interestingly, the market is not really waiting on a fat day. you are seeing selling pressure showing up in equity and bond markets. the nasdaq 100 leading the losses. you have a lot of big movers beneath the surface this morning. lyft, heading for its worst day on record. absolutely brutal given their outlook. bond yields are moving higher. a little shorter -- a little higher at the short end. still dancing around that 3% level at the short end. it will be interesting how that moves depending on what the fed does and what tone jerome powell strikes today. bloomberg dollar spot index

around 12.44 at this time. guy: a you very much. we are awaiting president biden. he's going to update us on the economy. this, along with the fed. when this happens, as he appears when he has right now, we will take a listen to what the president has to say. president biden. pres. biden: good afternoon. before i begin let me tell you, i will be around to answer questions on a lot of things, but i've got 600 olympians waiting out there for me. keep me too long they will rush the place. all kidding aside, this week my administration released new information that we are on track to cut the federal deficit by another 1.5 trillion dollars by the end of this fiscal year. the biggest decline in a single year ever in american history. the biggest decline on top of us having a 350 billion dollars

drop in the deficit last year, my first year as president. we also learned that for the first time since 2016 the treasury department is planning to pay down the national debt issued to the public this quarter. and for all the talk republicans make about deficits, it didn't happen a single quarter under my predecessor. not once. the deficit went up every year under my predecessor, before the pandemic and during the pandemic, and that has gone down both years since i have been here. period. those are the facts. why is it important? because bringing down the deficit is one way to ease inflationary pressures where the consequence of a war and gas prices and oil and food and it all is just a different world right this moment because of ukraine and russia. we reduced federal borrowing and we helped combat inflation. this process is good news, but

it did not happen by itself. the previous administration increased the deficit every year it was in office. in part because of its reckless to trillion dollars tax cut. i know you are tired of hearing me saying, but that to trillion dollars tax cut was not paid for. was not paid for. and a tax cut that largely benefited the largest corporations, 55% of which paid not a single penny in income tax in 2020. companies pay just a percent on federal taxes. the previous administration not only loaned the deficit, and undermined the watchdogs whose job it was to keep the pandemic relief funds from being wasted. at the time i kept saying, they are going to fire the inspector general's. well, they fired the inspector general. in my administration those watchdogs are back. the justice department has a chief prosecutor for pandemic

fraud he was going to go after the criminals who stole the billions in relief money meant for small businesses and american families, and i never got to them. it got in the pockets of criminals. when i came into office we took a different approach, with the american rescue plan and other actions started to grow the economy from the middle out. rescue checks and tax cuts for working families they gave them a little bit of breathing room and put food on the table and a roof over their heads. remember the first year? all of those long lines of automobiles lined up going through a parking lot just to get a boxer food -- a box of food? we got vaccination shots in arms that helped us go from 2 million americans vaccinated to more than 220 million americans fully vaccinated. made it easy for millions of americans to sign up for coverage under the affordable care act, saving them an average of $2400 a year. as a result of these and other

economic recovery plans we recover faster than projected. a record 6.7 million jobs created last year, and most in the first year of any president in american history, and the fastest economic growth in nearly four decades. and looking ahead, i have a plan to reduce the deficit even more, which will help reduce inflationary pressures and lower everyone's costs for families. look, it is a plan let's medicare negotiate prices of prescription drugs, as they do with the department of veterans affairs. licking cap the price of insulin at $35 instead of hundreds of dollars, even thousands of dollars a month for some families. my plan provides tax credits to utility companies to generate clean energy. most are required to pass those savings onto families. i met with about a dozen of those ceos here in the white house and they confirmed this plan will lower energy bills for families immediately. my plan includes tax credits for

consumers to purchase electric or fuel-cell vehicles. new or used. which will save the typical driver about $80 a month, not having to pay for gas at the pump. tax credit is to buy solar panels and heat pumps, and more efficient windows and doors for their homes. estimated savings? $500,000 a year on average. we can do these things by making sure no one earning less than $400,000 a year will pay a single more in -- single penny more in federal taxes. all we are asking is that the wealthiest americans and corporations start to pay their fair share. i'm a capitalist. i believe you should be able to make as much money as you legally can, but just pay your fair share. there is no reason why a billionaire should be paying a lower tax rate than a teacher or firefighter. that is in sharp contrast to the days the republican party is

offering. if they had not put this in print you would think i was making it up. senator rick scott of florida, added state senator, who is leading the senatorial campaign committee, released what he calls the ultra maga agenda. let me tell you about this. it is extreme, as most maga things are. it will raise taxes on 75 million american families. over 95% of whom make less than $100,000 a year. among the hardest hit? working families. imagine you are a family of four and you don't make enough money, federal taxes, you don't make enough money to pay them. under this new plan, this tax plan, while big corporations and billionaires are going to pay nothing more, the working class

folks are going to pay more. and it goes further than that. this extreme republican agenda calls for congress -- i'm not making this up either. you have to really think about this. requires a vote, if it were to pass, every five years congress would have to vote to reinstate or eliminate social security, medicare, and medicaid. social security is something seniors have paid in further whole life. and it has to be reauthorized? it has to be reauthorized every five years? look, again, it is hard to make this up. meanwhile, millionaires and billionaires and corporations skate by. imagine that. just imagine that. i think it is truly outrageous. i have offered a different plan, a plan rooted in american values

of fairness and decency. wealthy folks will pay a little more. billionaires will have to pay a minimum tax. most important light, no one making less than $400,000 will pay a penny more in federal taxes. we're going to protect and strengthen social security and medicare, not put it on the block every five years. i reduced the federal deficit. all of the talk about the deficit for my republican friends -- i love it. i reduced it $350 billion in my first year in office. we are on track to reduce it by the end of september by another $1.5 trillion. the largest drop ever. i don't want to hear republicans talk about deficits and their ultra-maga agenda. i want to hear about fairness. want to hear about decency. i want to hear about helping ordinary people. trickle-down economics has failed as income and equity grew

to historic levels under the republicans. maga republicans. i don't want to mispronounce it. this is time to grow the economy, but from the bottom up and middle out. because here's the deal. when the poor have a level -- a ladder up and the middle class grows the wealthy always do well. they do very well. that is what this is about. everybody doing better. and so i want you to understand, again, first year, $350 billion reduction in deficit. this year, $1.5 trillion. thank you. i will take a few questions. >> i have a question about sanctions. about further sanctions in europe. the european union announced a new sanctions against oil against russia. what is the next round for the u.s., and on a separate issue, what is the next step on abortion once this case gets settled? pres. biden: you want to ask me

about deficits, huh? i'm going to answer those questions then i'm going to go talk to the olympians. with regards to sanctions, we are always open to additional sanctions and i have been in consultation, i will be speaking with members of the g7 this week about what we are going to do and not do. number one. number two, what was the other one? >> the second one was on abortion. pres. biden: as i said when this hit as i was getting on a plane to go down to alabama, this is about a lot more than abortion. i had not read the whole opinion at that time, but this reminds me of the debate with robert bork. bork believe the only reason you had any inherent rights is because the government gave them to you. you look back to when i was questioning him as chairman, i said, i believe i have the

rights i have not because the government gave them to me, which you believe, but because i am just a child of god, i exist. i delegated by joining this union here, to delegate some rights i have to the government for social good. the idea that somehow there is an inherent right, that there is no right of privacy, that there is no right -- and remember the debate -- you don't remember, but we had a debate about griswold v. connecticut. there was a law saying and married couple could not purchase birth-control in the privacy of their bedroom and use it. that got struck down. griswold was thought to be a bad decision. what happens if you have states change of the law, saying that children who are lgbtq can't be in classrooms with other children?

is that legit under the way the decision is written? what are the next things that are going to be attacked? because this maga crowd is the most extreme political organization that has existed in american history. in recent american history. >> mr. president, how can you combat it? guy: president biden speaking on a range of issues, most notably on what he said about the deficit i thought was interesting. he was then asked about what is happening with european sanctions. he said he's going to speak with his g7 colleagues this week and is always open to further sanctions. let's get a take on what we are doing around all of this. ben sills joins us now to give a sense of where the european sets, the european union ramping up as we just heard in that

question, pressure on vladimir putin. a phase-in ban on russian crew. we are joined by managing editor ben sill. i heard what vonda lyon said. she laid out a plan and talked about the fact that it is going to be tapered in an terms of the impact and there are going to be carveouts for a number of countries. yet the hungarians are saying they are still not a board with this. is this a plan or is this a plan of action? are we going to see action as a result of this plan? ben: i think we are. i would be very surprised if the objections from the hungarians lasted long. the fact that the germans are on board here with their vastly greater reliance and appetite for russian oil is a real game changer here, and i think it is important not to underestimate quite what a seismic shift we

are seeing in energy markets. the hungarians are holding out. i think they will come on board soon enough. kailey: of course it is not just about whether or not anyone can buy oil. there is other can -- provisions included, including insurance. that would be huge, considering 90 5% of the worlds availability is arranged to a london-based organization that has to heed european law. can you walk us through that? ben: the sanctions include a prohibition on anyone who is governed by eu law, providing services to ships who would be transporting russian crew. that obviously includes insurance and other services. it is not clear quite how comprehensive that is going to be, if you look at the way it is drafted it does seem like european officials are trying to make it very difficult for

anybody to support russian crude anywhere around the world. kailey: bloomberg's and sales, thank you so much. obviously this is a story we will continue to watch develop, and to talk more about that with us is tyler castro, assistant professor of politics at the university of nottingham. first of all, where is your base case on whether or not hungry is going to get on board and this will actually come to fruition? tyler: you know, i have been very skeptical that viktor orban is obviously a friend of vladimir putin's. he is one of the most sympathetic european leaders to vladimir putin, that the extension to 2023 for hungry to be allowed to import may have some effect. so i'm more reticent than the bloomberg editor you just had on, but i am still somewhat hopeful we are going to get european unity on this, because the sanctions are so long in

taking effect. they are long in taking effect, but they are taking so long to take effect. this is a war that is raging day and, day out in ukraine. mark's out of 10 as an effort that has a significant impact on vladimir putin's behavior? tyler: i would give it a four out of 10, may be, up to a six out of 10 if we go and prevent any insurers from ensuring russian vessels or vessels transporting russian crude. i think that would be a tremendous benefit. kailey: as for the actual implications for russia, the kremlin was saying this is going to hurt you up way more than it hurts us. what is your view on that? tyler: it will have some cost on europe, but remember europe is also suffering here.

europe is experiencing, and the rest of the world is experiencing massively higher commodity prices. europe is having to pay for housing all of these refugees. frankly, if it does wind up increasing energy prices in europe and ending this war it could be a net in a fit for european consumers and governments. -- a net benefit for european consumers and governments. guy: we are getting a report here looking at how much european gas is now being -- how much of european gas is coming to the united states. basically indicating that u.s. lng cargoes were half of european lng imports in the first quarter. how much higher does that number need to get to, how much capability do we need to see for an oil embargo to become a gas embargo? tyler: i think we not only need to see capability, but political will, right? it is not only a question of,

how much will this hurt the european economy, but how much of the europeans able to bear to stop the worst war in europe since 1945? i would like all of that lng to be replaced, but it is time for europe to step up and say, we are willing to bear some costs in order to prevent women being raped, children being bombed. kailey: there is a line to that, right, tyler, to how much cost they are willing to bear? you expect anything on gas? tyler: not in the next little bit. i suggest what they are trying to do is, every time this war goes on another month they want to come out with a new sanctions package and do it bit by bit so they have something to announce. i'm happy this has some substantive sanctions. i believe the possibility of stopping insurance cover for russian oil cargoes is very important, what i think there going to continue to salami

slice this for another couple of months, because we just need more political will in europe in order to stop this. guy: part of sanctions are always part domestic. tyler, thank you very much, indeed. tyler kuster, a professor at the university of nottingham. greatly appreciated. for more now on the eu sanctions we welcome josie dent, center for economics and business research managing economist. can we quantify the impacts the sanctions package, the oil and energy package that has been announced today, will have on the european economy? josie: we have not crunched the numbers yet, but we know it could be significant in particular, for countries like germany, which are more dependent on russian oil than u.k. already we have been analyzing this crisis. sanctions so far are a downside risk. we think on the u.k. economy.

in a worst-case scenario it could have our rate forecast this year. -- it could half hour rate forecast this year. they are not going to be equal across european countries, so we see in germany and countries like hungry they are going to be more effective, and we will see over the course of the year how well they ease off russian gas and how that impacts their economy. kailey: you mentioned the impact on the u.k., real cost of living crisis when it comes to those inflationary forces. what is the boe to do tomorrow? stephane: i think we are pretty much expecting an increase to 1% , up from its current level of .75%. there will probably be a couple of more increases over the course of this year, to around 1.5%.

obviously the bank of england is weighing up the risks. we do have significant threats to gdp growth coming from this high inflation, which is being driven in part by the crisis in ukraine, but also other supply-side issues like lockdowns of chinese cities, and general supply chain issues which predated the war in ukraine. so, yes, inflation needs to be handled, but also it is presenting a risk to gdp growth. the bank of england has to weigh those risks against each other. guy: do you think it is possible the bank of england, which came out with a early rate hikes compared to some of its peers, will be the first major central bank to admit it needs to focus on growth, and that is a bigger challenge than the inflation risk? josie: i think most central banks acknowledge there is a balancing act there. the u.k. has been at slightly's

lower rates of inflation than the u.s.. so they might not feel the need to hike up rates at the rate we expect, perhaps, that the federal reserve to over the course of this year. i think tomorrow we will see acknowledgment from the bank of england that they need to consider growth in the economy. it is not primarily demand pushing up prices at the moment. it is coming from abroad, so we don't want to cripple the u.k. economy by raising interest rates too far when there is also a cost-of-living crisis going on. kailey: the boe is tomorrow. the federal reserve is today. what is the feasibility of a 75 basis point hike, if not today, at some point? josie: i think all central banks have got to be careful. i think most people are expecting half the percentage point tomorrow, and i would be surprised if we ever see 75 basis points increase over the course of this year.

we could see several 50 basis points increases. there are five meetings left after tomorrow in 2022, and many are anticipating increases in all of them, which would take rates to an incredibly high level compared to the rates we have seen over the past 10 years. guy: could the rest of the world, could other central banks tolerate the spread difference for the united states if that turns out to be the case? to what effect -- to what extent is the fed having a gravitational effect on everyone else? josie: it is a great question and one they will be asking themselves, because while we have been talking about the bank of england, and have been raising interest rates, the ecb has been much more careful. they will be worried as well about the difference between their interest rates and the federal reserve's, and investors fleeing from the european union and the eurozone. so there are risks there that

the ecb will be worried about as well, given they have not been quick to raise interest rates. they have not done so yet and they are being very cautious, because ukraine is right at their doorstep and they're concerned about the hits to gdp growth that might come from an interest rate rise. guy: great stuff, josie. josie dent, the center for economics and business research managing economist. european close is coming up in just a moment. european stocks are very near session lows as we speak. we are down near 1%. the european close is next. we will take you through the big picture numbers, we will show you what is happening in the bond market as well, and some individual stocks. all of that next. this is bloomberg. ♪

guy: we are wrapping up the wednesday session.

down, and down reasonably hard, selling off into the close. we are waiting for the fed later on, but things are going to turn significantly more negative as we work our way through the day. the dax is down quite hard. c thea -- the c isa down. let's break it down and show you what thec session is like. we have seen a really tight range, which is what you expect going into the fed, then this selloff into the afternoon session, which has culminated exactly at session lows as we come through the close. there are a number of assets i think are worth paying attention to. one of them is brent. we are up by 3.5 percent. obviously there is a reflection of what is happening with the european sanctions story in that.

the euro-dollar is catching as well, which is interesting. but the euro, maybe we are seeing a short-term bottom when it comes to the dollar. i think this is the other story. italian yields -- as everybody else is focusing elsewhere -- has been slowly creeping higher. pay attention to this. on a 10-year level approaching 200 basis points right now. talk about some stories and we will get into the individual stocks. energy is up, unsurprisingly. you have media and travel and leisure climbing. there is no sense of direction. retail is down, basic resources are down. i think the market is being driven as much today by single stocks from a bottom-up narrative as it is anything else. fast fashion is out of fashion. that certainly seems to be the story here. another dismal set of numbers

delivered by this group. ap moeller-maersk talking about what is happening. it may be a while before we see rates coming down. we talked to people on the inside of this business. they talk about this being the company that is going to be a huge consolidator going forward. then volkswagen, down by 1.34%. talking about where the business is going through the rest of the year, this is a company that is basically sold out of electric cars in the u.s. and europe. it is facing significant challenges in sourcing the stock they need right now, kailey, and that may pick up in the second half of the year. kailey: at least if you listen to ceo of volkswagen, that is what he has to say. he does recognize it is a challenging environment, he told bloomberg one issue stands out from the others. take a listen.

>> the war in ukraine is what i'm most concerned, because of its long-term effects. it will depend on how long it is carrying on if it has a severe impact on material prices and energy costs. and it might impact europe and especially germany's business models of severely if we are not able to stop that. kailey: joining us now is benedikt kammel, who joins us from germany. you also have a worn ukraine, but something even predating the war is the semi conductor shortage, the chip crunch. he is optimistic that gets better and the second half. is he alone? >> the view from the car industry generally is things on the chip front will improve. we heard a couple of days ago from mercedes-benz. they had something similar to say. the currency has been able to navigate that chip crunch a little better in the last couple of months.

so that is sort of the silver lining that front, but there is that great unknown out there, that is the ukraine war. nobody knows how long it might drag out and what kind of an effective might have on consumer sentiment. will people want to spend big on cars? well all materials become more expensive? will some of the supplies become more restricted? all of these things we don't know, so he gave us a somewhat muted outlook for the year. he did say things will get better in the second half, but there are a lot of if's and bots attached. not only the ukraine more, but also the coronavirus, which is it still around, particularly in china. that is another big question they will have to deal with in the second half, and that might be part of the reason why the stock did not react as positively to what seemed like a reasonably upbeat outlook for the year. guy: i was surprised.

the other factor involved in vw -- the stock is trading at $204. what track are we on in getting that done? is q4 likely and what details doing know about what valuation we will be able to ascribe to that business? benedikt: there are a lot of question marks that remain around that. there is no indication that would pull this or that it would slip into next year, so we are still on for the end of the year. they have named the banks they have minute -- mandated to help with the rpo. the superlative is such that it would be one of the biggest in the last couple of years in germany. there is a lot riding on this. this is an asset they want to monetize, and that is money they can plow back into the electric vehicle push. you mentioned in the u.s. in particular that business is doing well, and that is a market where they have huge catching up to do. at this point, no indication

that plan is all for that timeline is off. q4 remains the plan, but that is as much as we know. kailey: he mentioned the u.s. volkswagen is also looking to expand its collaboration with ford. why do that? benedikt: the u.s. has historically been a very difficult market for them, and it was interesting to hear that the u.s. is a market where they want to expand. now, obviously treacherous territory for them. people will remember the diesel-gate scandal, which almost brought the company to its knees a couple of years ago. but they do have a small footprint they are compared to their global size, so this is a market where they want to expand , particularly on the electric front, and expanding and going along with ford but probably go a long way for them. electric is really the future for volkswagen. a lot riding on that particular expansion and the u.s. is where

it is happening. guy: absolutely. fascinating that you basically cannot buy one. benedikt, thank you very much. benedikt kammel on what is happening with volkswagen. we are done for the day here in europe. these are the final numbers. session lois for europe, the ftse 100 selling through at the end of the day. so, a definite selloff in the last hour or so of trading, taking us to these session lows as we head toward the fed, the main event later on. ahead come of course, of the bank of england tomorrow. we will have coverage of both of those events on the cable this evening. we will take to the air at 5:00 p.m. london time. you can find us on digital radio in the london area and on all of your bloomberg devices. if you cannot find this of -- find us there, the podcast is available. kailey: i'm taking a look at the markets in the u.s., which are deteriorating. the nasdaq 100 down one point

5%, adding to the pain we have seen. the nasdaq still sees a healthy ipo pipeline. how many companies want to come to the public market in this kind of environment? we will teach -- we will speak to adena friedman. this is bloomberg. ♪

ritika: this is bloomberg markets. i am ritika gupta. you're looking at the live shot of the principal room. coming up, brian chesky joining bloomberg technology at 5:00 p.m. in new york. keeping you up-to-date with news from around the world, here is the first word. the european union is proposing to ban russian crude oil over the next six month. ursula von der leyen also said that refined russian fuels would be banned by the end of the year. brooke has learned that hungary and slovakia will not enforce the ban until the end of 2023.

those countries were opposed to a quick cut off. the rest of bill quan for -- the u.s. investigations into questionable trading practices are on the rise. these probes center on the same question -- are the markets rig. biden administration officials pledged to sue -- pledged to pursue white-collar criminals. securities and exchange commission is investigating didi's debut in new york. that is when the chinese ride-hailing giant raised billions of dollars days before revelations of china's probes into data security tank to the stock. before today didi had fallen 85% since last summer's ipo. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. kailey? kailey: thank you.

to say the least it has been a challenging time for tech names. so far this year the nasdaq is down 20%. we are seeing more losses today. let's take a look at how this is affecting the nasdaq's business. the ceo, adena friedman, joins us now. great to see you. clearly it has been a tough time to be invested in the stock market, each also makes it a tough time to come be in the public markets. what are you seeing in terms of activity and companies' desire to become public in this environment? adena: first of all it is great to be here. thank you very much, kailey. it has been an interesting start to 2022 in terms of the ipo market. get such an amazing market last year in terms of companies coming out into the public markets. we had over 750 ipo's last year. this year we started off much slower. we had 70 in the first quarter. when we look at how the second

quarter is evolving, i would say companies are still saying on the sidelines. you have to understand what are the ingredients driving that. i think first of all the underpinning of the u.s. economy continues to show strength, however there are a lot of uncertainties. the one thing's investors like to do is predict the future. that gives them confidence to make the decision to invest in a new company coming into the public markets. it is very difficult to predict the future when you don't quite understand how monetary policies going to evolve, really interesting political backdrop, and you have an inflationary environment as well. i think that is holding investors back from being able to make buying decisions, which then holds companies back from coming to the public markets. kailey: the pipe -- the pipeline of companies continues to be quite strong. we have over 250 filings that are looking to tap nasdaq in the coming months and quarters. but they are going to come out

when the investors are ready to be able to take those risk decisions and be investors in their companies. guy: good morning. is it going to be a 20 20's -- 20 story for them or a 2023 story? what will this year's number look like compared with last year's number? adena: i think it is difficult to know, but there are some companies hoping to tap the public markets this quarter. it is likely if the markets continue to be volatile and create uncertainty they might wait until later in the year, but i would expect that, you know, i honestly don't know the answer, but i would expect there are companies that if the environment becomes more certain, if monetary policy becomes more obvious and certain and we get into a mode of understanding the next moves by the fed, if we also see the labor markets and stabilize a bit, we see inflation tame a bit, i think you could see companies starting to come out in the second half of the year. but it is really going to be market-dependent. kailey: what companies are we

talking about? what industries do you expect to see the most activity eventually? adena: nasdaq is the home to companies from every sector, but the companies that have been eager to tap the public markets are those really leaning into the digitization of the economy. those that are leaning into providing new technologies to help get to a net zero environment. the tech innovators we see coming to nasdaq every year. those are the same kind of companies looking to tap the public markets. whether they are health-care and biotech companies, new energy companies, those are all areas we see strong interest. guy: i'm going to ask this question before kailey does. i'm going to get in there first. [laughter] nasdaq and crypto. are they going to go hand-in-hand? where you fit in? adena: nasdaq is a skilled technology company that serves the broader capital markets and the broader financial system, so we have a big role to play in

facilitating and helping crypto markets, as well as banks and brokers, manage new digital assets. we provide our technology to 130 other markets around the world, including -- actually i think we are up to 10 crypto markets leveraging our technology for trading, for surveillance, and other means they have to make sure they can grow and expand their business. we also have a very scaled anti-financial crime technology solution, where we have created a new module specific to digital markets to make it so that banks can evaluate aml risk, as well as fraud risk in their digital wallets, as well as their more traditional accounts. one third thing is we have a crypto index we have launched outside the united states. so, we have a role to play, but as a market operator i think we are still trying to understand the regulatory landscape, as well as the overall maturing of it before we make good decisions

as a market operator. kailey: the reason guy joked about stealing that question is because i host a show, number crypto, and would love to get you want to talk about that further, but something else we have been talking about on that show a lot is the security issues around it. the role cryptocurrencies may play in evading sanctions, for example. the mere standpoint i am wondering how you view some of these risks around russia and cybersecurity? where does that rank on your list of concerns? adena: cyber risk is a risk that is universal to the financial system. that is something we take extremely seriously. we worked very collaboratively with under it -- with other industry players, with other governments to make sure we understand what is happening in the space and we are protecting our markets and technology to the best of our ability. with regard to other risks, as you mentioned, sanctions at screening and other concerns they have, particularly as they are using new ways to facilitate

commerce, like crypto, it is an area where the technology continues to need to be brought into the financial system to help. that is a big reason why we bought a scaled anti-financial crime technology company. it is a cloud-first solution. it has the ability to be much more advanced in helping banks protect themselves against the sanctions violations, and we have a new sanctions screening module we are rolling out to our clients. in addition to come of course, offering more advanced solutions to digital assets and digital wallets. guy: let's talk more about regulation come at it from the sec' as point of view. the sec is putting out a bunch of proposals. he clearly wants to improve the market from an investor's point of view. what you see as the best way of making this a investor-from the market? what you think about pay to order flow? how does this market structure

need to change to make it more friendly for investors? adena: one of the great things about my job -- and i have been at nasdaq for 26 of the last 29 years -- it is actually one of my favorite topics, talking about market structure. there is a learning curve. perfection is impossible, but we all strive for perfection. as we look at today's markets and what is working well, i would start by saying i think the markets have demonstrated true million -- tremendous resiliency in a volatile. of time -- period of time. the market is working well in terms of creating an environment where every investor can express themselves and the type of orders they want to enter in. we give them instantaneous access to traits. it is a very fast market and we really try to reduce friction. but the fact of the matter is, there are always improvements we can make. nasdaq put out its own views. we have a paper that talks about how -- what needs to be done to strengthen what we call the

national best offer. that is where orders really come together and there is transparency about the buying and selling interests at any given point in the markets. more confluence of orders coming together, the better price investors are going to get when they put an order into the market. that comes with leveling the playing field between the exchanges and the dark pools. it does go into looking at the incentive structures both in terms of whether it is broker incentives, exchange incentives, as well as the tick sizes. there are a lot of companies tick-constrained. markets can only express themselves in pennies, when you look at supply and demand it is happening in sub-pennies. i think leveling the playing field on tick sizes is another key area. we have a lot of proposals and

we are excited to talk about it whenever you want. kailey: the sec is also taking a hard look at spacs. do you think companies will continue to take nontraditional ways to come to financial markets? are we going to shift back to straight up ipo's? adena: we have to look at it from the perspective of a corporate. they come at today, have three ways they can tap public markets, and i think that is great, to give companies twice. they can do a traditional ipo, they can have a direct listing, or they can go public through a spac. what the sec is trying to do is make sure investors are protected in all three of those mechanisms. the proposals they have out there are designed to make sure there is a balance between the sponsors of the spacs and the investors on the back of the combination. it is an evolution, right? this innovation came out, and now it is a matter of maturing

it and making sure there is a balance. i think that is the healthy part of a capital market. guy: it is great to see you in the studio. they give for joining us. adena freeman, nasdaq's president and ceo. while we have been speaking, airbus has put out its numbers. the line, well ahead of expectations. they have taken a 200 million dollar hit as a result of russia, however i would caution, free cash flow looks like. it is going to be interesting to see how the market takes all of this. they are ramping up production of the a320. we will have more on this later. i'm going to be talking to the ceo. that is coming up. this is bloomberg. ♪

guy: the fed, mike mckee, what are you expecting? mike: we are going to get a 50

basis point increase. will we get 75? that is the question. and what does the fed say going forward? to find out if he is going to endorse the idea or at least not shoot down the idea, 75 basis points at some point? a lot to look forward to for markets here. kailey: one of those things we will look forward to is your question at the press conference. thank you so much to michael mckee, and watch the fed decides. that coverage beginning at 1:00 p.m. here on bloomberg tv. that will wrap it up for myself and guy, but coming up will be "balance of power" with david westin. he will be talking with marsha blackburn of tennessee. guy is heading over to the cable. london digital radio is where you will find him for the next hour. nikki somewhat for joining us. this is bloomberg. ♪

>> from the world of politics to the world of business, this is "balance of power" with david

westin. david: from bloomberg world headquarters in new york to our television and radio audiences worldwide, welcome to "balance of power." the federal reserve and what it is likely to do in washington is the big story. we have sent our best and brightest to cover it. michael mckee, what are we expecting? michael: the question is how does jay powell get around the question of will the fed speed up increases? we will see 50 basis points baked in. will they go faster? they expect to be neutral. the market sees that at over 3% by the end of the year. the white line is where we would be by the end of the day.

that