Brutal sanctions

Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Antony Blinken are to speak by phone Tuesday as diplomatic efforts to persuade Russia to pull back more than 100,000 soldiers from the Ukraine border continue. On Monday, the UN Security Council held a dramatic meeting on the crisis after rejecting a bid by Moscow and Beijing to block the session. Russia was asked for an explanation regarding its aggression toward Ukraine, but the meeting ended in a standoff, with the U.S. ambassador to the United Nations saying “we didn’t hear much” and Russia’s ambassador denying any intent to attack its neighbor again. The diplomatic flurry is running alongside a push by the U.S. and European Union to complete a package of potentially brutal sanctions. The government of U.K. Prime Minister Boris Johnson (who faces a major scandal at home) said it may go further and target “any company or individual of direct interest to the Russian state” if Vladimir Putin orders the further invasion of Ukraine. Russia continued to boost troop levels around the Ukrainian border over the weekend. Here’s the latest on the crisis. —Natasha Solo-Lyons

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

U.S. equities advanced as dip buyers emerged following the pummeling markets took most of January. Some of the month’s worst performers made up some ground on Monday. Cathie Wood’s flagship Ark Innovation fund surged 9.5% while a Goldman Sachs basket of profitless tech companies rallied 10%. Tesla and Netflix each added 11% Here’s your markets wrap.

Boris Johnson pledged an overhaul of his top team in government after an interim report into rule-breaking parties during Covid-19 lockdowns found “failures of leadership and judgment” and criticized “excessive” drinking. The outcome of the London police probe will help Tory lawmakers decide whether or not to topple their leader.

Moderna’s Covid-19 vaccine received full approval from the U.S. Food and Drug Administration for people 18 and older, an important milestone that bolsters the shot’s use as a major weapon against the virus. Canadian Prime Minister Justin Trudeau said he has tested positive for Covid-19, four days after going into isolation because one of his children contracted the virus. In China, the number of Covid infections among athletes and team members in Beijing for the Winter Olympics continues to grow as the Games draw near. Here’s the latest on the pandemic.

Wall Street’s biggest banks are at odds over how fast and far the Federal Reserve will raise interest rates after Chair Jerome Powell signaled it could be more aggressive than previously anticipated. Meanwhile, Americans across income groups succeeded in recouping earnings lost to Covid-19 in 2021.

Bitcoin is closing out a rough month, with January’s dives putting the digital coin on pace for its worst start since the 2018 “crypto winter.” The largest cryptocurrency by market value has notched only 11 up days in January, meaning it’s spent 65% of the month mired in a decline.

Blue-collar Americans are seeking career shifts in the age of work-from home. Enticed by flexible hours and better benefits, thousands of workers in the U.S. have successfully moved from roles in industries like construction to office jobs in management, business or finance.

The 60/40 portfolio split between equities and high-quality bonds is set for its worst monthly slide since the pandemic crash and recession of 2020. Both equities and bond prices fell sharply in January as markets price in a faster pace of interest-rate tightening.

For the amount of work they’re expected to do, China’s regional governments aren’t paid enough, Bloomberg Businessweek reports. As the economy slows and real estate enters a bear market, a financial collapse on the order of Puerto Rico’s is a real possibility. Though the central government collects more than 8 trillion yuan ($1.3 trillion) every year, the share going to local governments has declined since a major tax reform in 1994—and regional governments have even bigger bills now.

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