War crosses into Russia

Russia claimed two Ukrainian military helicopters crossed its border and attacked an oil-storage facility in the city of Belgorod, which if true would be a significant escalation in Ukraine’s effort to slow the Russian invasion. Ukrainian authorities did not confirm the allegations.

Despite repeated claims of de-escalation, Russia is allegedly redeploying as many of 2,000 troops from Georgia to Ukraine. Negotiators from Ukraine and Russia spoke Friday via video link, though previous talks failed to agree even a temporary cease-fire. Another 23,000 people arrived in Poland from Ukraine on Thursday, and another 3,500 early Friday, taking total refugees since Feb. 24 to 2.4 million, Polish border authorities said. More than 4 million people have fled Ukraine since the start of the Russian war. —David E. Rovella

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

The U.S. added close to half a million jobs in March and the unemployment rate fell by more than expected, highlighting a robust labor market that’s likely to support aggressive Federal Reserve tightening in the coming months. U.S. President Joe Biden hailed the data as he struggles to find ways to combat inflation, and high gas prices in particular.

U.S. government bond yields reached new levels of inversion—including the two-year rate exceeding the 30-year for first time since 2007—on fears the next Fed rate hike will be a big one.

The dollar gained while a manufacturing survey disappointed with higher-than-expected prices paid. “Although today’s job report was a little softer than expected, it still paints a picture of a steaming labor market,” said Seema Shah, chief strategist at Principal Global Investors. “The final vestiges of Covid-19 are close to being fully eradicated from U.S. economic data.” Here’s your markets wrap.
But the pandemic isn’t done with America it seems. The average infection rate has begun to tick upward as the now-dominant omicron subvariant continues to spread. In New York City, where infection rates have been rising for a week or more, authorities have renewed calls for the wearing of masks indoors. And in China, a vaunted Covid-zero strategy that worked to save lives may now serve to crush the economy.

The pitch from Wall Street sales desks to clients goes something like this: Block out the horrors of Vladimir Putin’s war on Ukraine, and focus on the money to be made. Years, even decades could go by, one hedge-fund firm recalls being told, before another trade this attractive comes along.

California’s mountain snowpack has dwindled to alarmingly low levels after a record dry start to the year, leaving the world’s fifth-largest economy mired in drought at the end of its traditionally wet season.

Russia’s economy has staggered through the first full month of its war on Ukraine, but it may yet emerge with a sparkling balance sheet. For all the hardships visited on consumers at home and the financial chokehold put on the government from abroad, Bloomberg Economics expects Russia will earn nearly $321 billion from energy exports this year, an increase of more than a third from 2021.

The odds of getting into Harvard University are worse than ever. The Ivy League school fielded a record number of applications this year, partly in light of test-optional policies during the pandemic, reducing its acceptance rate to 3.2%, an all-time low.

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