The battle is joined

The artillery battle for Ukraine’s eastern Donbas region is fully underway, according to the Pentagon, which estimated that defenders have managed to push back planned Russian advances by at least two weeks. Nevertheless, the Russian offensive across eastern Ukraine has gained more territory in two provinces that have been fought over by Moscow-aligned separatists and Kyiv since 2014. Ukraine officials say Kremlin forces have targeted residential areas in the east with dozens of strikes, but have also suffered an embarrassing defeat. And for the first time since Feb. 18, US officials said Defense Secretary Lloyd Austin spoke with his Russian counterpart, Sergei Shoigu. —David E. Rovella

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

Turkey, a NATO member whose leader Recep Tayyip Erdogan has a history of poking other members in the eye (accepting weapons systems from Russia while maintaining warm relations with Vladimir Putin, for example) may now potentially block Finland and Sweden from joining. Meanwhile, the Kremlin-friendly nation in the European Union which may have already killed the bloc’s oil embargo plans isn’t leaving Putin’s orbit anytime soon, it seems: Hungary’s Viktor Orban just named two allies with ties to Russia to top posts in his next government.

Europe has suffered more than 2 million confirmed deaths from Covid-19, the World Health Organization said, though as with the US where the number is 1 million, the actual losses are likely much higher. Across America, infections are steadily rising again, as are hospitalizations. New mutations are more easily circumventing any protections from previous infections or vaccination by giving some people Covid a second, third or even a fourth time. Early studies have suggested that the newer omicron sub-lineages can actually evade not just the antibodies of previous variants like delta, but even the antibodies of previous versions of omicron. “The reality,” said Jake Lemieux, an infectious disease doctor at Massachusetts General Hospital, “is that things are really not going well.”

The market doomsayers of the week ended up on the wrong side of Friday as stocks rallied, with a little help from Federal Reserve Chair Jerome Powell’s reassurance that bigger rate hikes are off the table for now. Powell’s remarks ended up soothing frayed nerves and sparking a rebound in beaten-down risk assets. But even with the broad-based jump across indexes, the S&P 500 still posted a sixth straight week of declines. Here’s your markets wrap.

International tax officials have identified more than 50 leads to potential crypto tax crimes that may lead to official investigations in the coming weeks, including one case that could be a $1 billion Ponzi scheme. Top criminal tax and financial crimes officials from the UK, US, Canada, Australia and the Netherlands met in London this week to share intelligence and data to identify sources of cross-border illegal crypto activity. The officials specifically focused on emerging trends with decentralized finance and nonfungible tokens, or NFTs.

Repackaged auto loans seem like an unlikely place for mauled credit investors to hide, but they are indeed outperforming while their issuance is at a multi-year high. Corporations have sold more than $58 billion of asset-backed securities supported by auto loans this year, about 20% more than at this point in 2021.

Russia’s war on Ukraine is fracturing a billion-dollar global industry. In jeopardy is a diamond trade that spans the mines of Siberia, trade houses in Antwerp, polishing powerhouses in India and New York’s designer jewelry stores.

Forget about fixing that leak. People looking for a quick home renovation are increasingly finding themselves frustrated, over-budget and living in a mess. A combination of pent-up demand, overburdened contractors, shortages of materials and delays in the supply chain has turned home remodeling into an unusually costly and time-consuming affair for people across America and indeed around the globe.

Next week, an extraordinary personal cellar of old and newer vintages is going on sale at Sotheby’s in New York. The more than 4,200 bottles come from Prince Robert of Luxembourg, owner of Bordeaux first growth Château Haut-Brion, his family, and his friends. Just perusing the catalogue will stimulate the fantasies of wine collectors.

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Bloomberg New Economy Gateway Latin America: The region is fast embracing tech-based innovation. Will the emerging digital economy widen inequality or create more opportunity? Government and business leaders will gather May 18-19 in Panama to address Latin America’s prospects for inclusive growth in education, jobs, transportation infrastructure, fintech, clean energy and healthcare. Watch the livestream at bloombergneweconomy.com.