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tv   Bloomberg Markets  Bloomberg  March 29, 2016 3:00pm-4:01pm EDT

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point 5%. we are seeing utilities and telecom health care with a combination in defensive groups and utilities calming down. financials being the only group interestingly that are in the red. at commodities today, gold prices are surging in the wake of that commentary. at the same time, crude continues to languish. an earlier touch beat them up -- below $38 per barrel without gaining much traction. tomorrow we get the weekly inventories report for the week.
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definitely some reaction, we are continuing to see the dollar slumped? julie: most definitely against a basket of securities. down three quarters of 1%, moving with this perception that we are not going to see an aggressive fed by any means and of raising interest rates this year. the dollar index, if you take a look at the bloomberg and it looks at the monthly performance, it is now set for a decline of 3.4% in march. that would be the worst one of 2011.k to april we have not seen dollar performances like this in white some time. it looks like according to analysts this might continue. this is the forecast from various analysts of the euro versus the dollar. as you can see, they were not quite as bearish going back into january or february, but for
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$1.09 per euro is the current forecast for years and and they are getting more pessimistic here. the dollar decline may not be over. >> tend to get bloomberg's first word news. mark crumpton is that our news desk. mark: florida police have charged donald trump's campaign manager with misdemeanor battery after an alleged incident with a breitbart news reporter. michelle fields says corey lewandowski grabbed her as she tried to ask mr. trump question at a rally. trump said in a statement that lewandowski "is absolutely nnocent of the charge." republican presidential candidate ted cruz has picked up the endorsement of wisconsin governor scott walker. the timing is significant with the wisconsin primary week from today. governor walker, whose own presidential bid ended in september, says senator cruz is in the best position to win the republican party nomination and defeat democratic front-runner
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hillary clinton in november. a man identified by authorities as an egyptian national is in custody after hijacking a domestic egyptair flight and forcing it to land in cyprus. officials say the hijacking was not terrorism-related, and the man, who was wearing a fake explosives belt, was trying to communicate with his ex-wife, who lives on cyprus. everyone on board the plane is skipped or was released before the man surrendered. brazil's biggest political party the president's coalition. has helped government since the country's return to democracy in 1985. the world health organization says ebola no longer qualifies as an international health emergency. nearly 11,000 people died from the virus, mostly in guinea, liberia, and sierra leone since december 2013. despite flareups from each has
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declared an end to ebola virus transmission in their respective countries. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. carol: all right, mark, thank you very much. caution is the word of the day as fed chair janet yellen spoke at the economic club of new york. she cited a shaky global outlook as reasons to proceed carefully on raising interest rates. i consider it appropriate for the committee to proceed cautiously in adjusting policy. this caution is especially warranted because with the federal funds rate so low, the fomc's ability to use conventional monetary policy to respond to economic disturbances is asymmetric. carol: for a reaction to chair yellen's remarks, let's bring in jeff rosenberg blackrock.
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nice to have you here on this tuesday afternoon. we have been looking for to a janet yellen had to say. she definitely came off more dovish. was this what you were expecting from her? jeff: it was what i was expecting and what many in the market were expecting. clearly she came in above expectations, if you will, in terms of the dovishness judged by the market reaction you have talked about in terms of stocks, the bond market yields lower, the yield curve steepening, and we are pricing out expectations or reducing our probabilities of expectations for when the next interest rate hike is going to come, if it ever does come. that certainly is a reaction to a very dovish presentation that she gave today. carol: i would like to take everybody inside bloomberg and look at what fed fund futures are saying in terms of expectations of the april meeting. 27%e a 2% chance for june, , and after janet yellen for june we had 28%.
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the expectations had been rained and dramatically good she does remind us that the fed is data-dependent. if there is any consistency in the message, it is that. this could change in a month or two. jeff: certainly, and that came up as well, and the fed is data-dependent and the satellites the fact that it is data-dependent. janet yellen introduced this say it -- i can't even -- the market reactions that have been very helpful in that when the data turns, the market bases its expectations from what the site is going to do. that is why we have declining bond yields, the decline in bond yields helping to stabilize the market environment. certainly as we go forward and we look at the data, that is still very much going to be with us. the message from today, from the fed, is there read on the data is despite the firming inflation -- janet yellen continued to cast some doubt as to whether or not that firming inflation is
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really durable -- and despite a relatively unchanged outlook with regards to growth and inflation, they are going to be more patient and cautious, i think was the word today come in terms of normalcy. carol: what do you do as an investor, jeff -- i bring that up because there was a great story on bloomberg today talking about how blackrock is joining others like pimco warning investors to seek an inflation hedge. based on what janet yellen said, that would seem to not be the case. what do you do as you try to navigate what the fed may or may not do, what may or may not happen in our economy? jeff: the fed has many, many important impacts in terms of financial markets. that is an understatement. inflation expectations in the financial markets certainly got to a level in mid-february when we had oil prices at their lows aree inflation expectations pricing in virtually no possibility of stabilization and
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we certainly saw an opportunity there. we have had a big rebound there in inflation expectations. janet yellen acknowledged that could inflation expectations, market-based expectations were low, but there was a recent rebound. that has changed some of the near-term outlook for inflation. certainly if the fed is wrong in terms of this firming in inflation, and certainly if we continue to see a stabilization in oil prices, then inflation -linked bonds are an attractive way of diversifying fixed income portfolios and that is something that we look for. on of the cautionary notes inflation linked bonds for investors is we kind of put the oil story to the side here as we have stabilization recovery in oil prices. we are a little bit concerned over the longer run that the oil story may reassert itself and oil prices have had a high degree of correlation, in a bad way, for the performance. the afghani cautious there. though, do comfort,
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you have -- at blackrock you manage a ton of money. what comfort do you feel in making those decisions, because visibility can be very tough right now back up jeff: that is always the case -- carol: but don't you think it is trickier with global central banks surprising us? without the fed would raise rates a year ago and they continue to do a different course. things globally are not so great. how tough is it for you guys to make the decisions you need to ? jeff: as investors who have seen ,any, many different markets there are always decisions to be made under uncertainty. what you point out is that we have a unique environment of global policy divergence and of global policy, in monetary policy terms, experiment. we have never had an experience with negative interest rate policy, persistent zero interest
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rate policy, the size of qe programs. these create an entirely new dimension to investing that we have to navigate and we navigate ,hose as we learn the impacts and we have seen the impacts can we have seen them in europe, for example, in terms of the expansion of the corporate bond purchase program led to a significant rally in corporate bonds. the extension of accommodation in the bank of japan led to a flattening in the japanese bond curve. many of these policies have had the intended effect in the financial market and we can invest alongside that and a necklace patient of that. carol: are you frustrated a little bit that by all of these unprecedented measures that we out of seen more oomph the global economy? jeff: that is the big concern, and glenn hubbard asked that question of janet yellen today, are you out of ammunition question. when we asked the question of
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are you out of ammunition, we should be clear here. no one doubts that central bankers have the ability to change financial market prices. if we go to ben bernanke, on his blog, talking about targeting interest rates, interest-rate target is no different than quantitative easing. it is just which one are you going to focus on? are you going to focus on the cause or the effect? of effect is the lover level interest rates, and given the unlimited capacity to affect that, because, in terms of wanted to do it using, there is no -- in terms of extending quantitative easing, there is no question they can lower interest rates. the question is to what and? is it beneficial to the real economy? were go back to where we six or seven years ago, everybody would agree that we would be disappointed to think that given the global amount of accommodation for monetary policy that all we have gotten out of it is about 2% growth come in the u.s., and that certainly disappointing. carol: we are definitely living
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in interesting times. thank you for your analysis. definitely appreciated. coming up in the next 20 minutes of "bloomberg markets," all eyes on brazil as the party's biggest party abandons president rousseff. is her impeachment all but confirmed? and we go to the nasdaq. about theill tell you u.s. bull market has it run its course? we will talk to one analyst about why he is underweight stocks. ♪
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carol: you are watching "bloomberg markets" on this tuesday. i'm carol massar.
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stocks, checking my bloomberg, rp much of the highs of the session. .8%, very different tone to the markets following the comments by fed chair janet yellen. there is the dow jones industrial average, up about .5%, 96 points, bit of a rally there as well. let's check on the nasdaq you come up 1.6%. nasdaq at 4845. big story, brazil's largest party abandoning president dilma rousseff. let's check in with julie hyman on a check of results stock markets. big news. julie: and this was big for her to come just weeks before she is facing an impeachment vote, so now that this party is no longer with her, it could potentially make it more likely. as we have seen all along throughout this potential impeachment saga, on any glimmer of her being removed from power we have seen stocks rally. that has happened once again today with the brazilian stock index of about .8%, although it has come down off its highs of
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the session to some degree. itsvespa is said to have best month since 1999. you see this 20% rally we have seen in brazilian stocks. particular, petrobras, is when we have been tracking closely because rousseff is closely linked with of company, or had been in the past, and that is one of the allegations of corruption, it has to do with her relationship with that company. .7%can see that stock is up today. we have been watching the brazilian currency, the central bank there moved to weaken the currency today. this is showing the dollar gaining versus the brazilian real. you can see about .2% today so it has come off to some extent. the real has been an outperform or if you look at it for the year-to-date among currencies globally and emerging-market currencies in particular, amidst all of this political turmoil. protests in brazil calling for dilma rousseff to be removed. julie, thankjulia --
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you so much. i am now going to go to julia. let's bring in bloomberg news' são paulo bureau chief. julia, nice to have you with us. that's get an understanding of this latest news. what does it mean for the political, economic, and business environment? julia: the largest party in brazil, they have been supporting every government we have had since 1985. they today have the vice president, the president of the lower house of congress, the president of the senate from all from pmdb. we have been all waiting for pmdb to formally split with the government. they have signaled they are going to do that for a few months now. the president of the lower house actually told media he was splitting with her months ago. but this is still very important because she loses a very, very important part of her coalition base, and what the concern is is
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that many other smaller parties -- brazil has many, many parties -- will follow pmdb in splitting with the government and further eroding rousseff's situation now. carol: this is pretty much guarantee that she will be impeached -- does this primus guaranty that she will be impeached? julia: this makes it that much more likely. one has the -- chances she will be impeached at 75%. we are waiting for the votes to come in the next two or three weeks in the lower houses and it passes on to the senate. the chances are much, much higher now than they were maybe a month ago, and pmdb just confirmed -- the government is -- there is just no more support for the government to pass anything in the congress, and doubtful they will be able to stop impeachment at this point. carol: interesting to watch all of this continue to in full. são paulo bureau
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chief joining us there. in thehead, strength u.s. housing market stronger than ever, but are there any warning signs? we will hear from robert shiller up next on "bloomberg markets." ♪
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carol: this is "bloomberg markets" i'm carol massar come in for betty liu. senior markets correspondent julie hyman is standing by on how the options market is handling all of the section. julie: thank you, carol, appreciate it. joining me is kevin kelly, chief investment officer at recon capital. abouthave been talking all day, janet yellen did not say anything substantially different what she said a few ,eeks ago after the fed meeting and yet we are definitely seeing
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a rally based on the perceived dovishness of her comments. bets beingng similar placed in the options market based on what she had to say? well, the options lines were extremely low so everybody was waiting to see what she was going to say, and i thought it was pretty significant what she said today in that we got a big report out of -- on gdp last week, and it showed consumer spending was doing very well. with seen that the jobs market has been very robust, and we're seeing housing prices go up now. but what is really driving the market, and that is earnings. earnings have been down 11.5% year-over-year. that is when she is really focused on because if ratings keep going down, that is going to lead to job cuts, that is going to be the two countries not reinvesting in the future, and that is what the fed is really focused on. i thought it was in testing, her comments today saying that even though we had a strong u.s. market. julie: in the wake of her commentary did we see an uptick
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in volume within options? we were seeing that for the overall market. kevin: actually come in the options market we did not see a big uptick in one of the reasons we have seen action, people at the hedging and waiting for earnings season to come out because earnings season will be a big driver in how the dollars shaking out and how growth has impacted the markets, especially oil, because oil has driven markets all year. julie: interesting. you are focusing on one company in particular going into earnings season. that is google, which i think reports on the first day of spring, if i'm not mistaken, april 21. wait, we already have the first day of spring. kevin: yeah. any case, google coming out on april 21, that part i'm sure he got. what are you looking for going into that? is it what is interesting is still trading below where it was last earnings report. shareholders were joyous, was of over $800 a share, and now it is
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only 760, where was early in the day. we are looking for a call spread in a 800 levels are you can go out to the main weekly options, right after earnings, buy the $760 call, sell the $800 one pricing for$17 the the four dollars for it and put that into earnings because earnings have done well. if you look at the rest of the tech names -- facebook is above its pre-earnings level last time and google has not participated, really. julie: what makes you think that this time it will if it hasn't been getting earnings list? kevin: one of the reasons why it is performing in three of the hottest sectors and has done very well in the cloud site and landed big clients away from amazon and you see google over from amazon that so if they come out and show growth in the cloud computing sector, that beats expectations, it will go through the 800 -- julie: and this is timed -- kevin: directly for the earnings report because after the last
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earnings report it has been down. julie: so you are looking for the pop and maybe a fade afterwards. yeah, executive, because everyone has owned this team and nobody wants to be in the tech sector. they have been shy on that sector all your and they are going to value. julie: kevin kelly, despite the fact i don't know when the first day of spring is, currently, i appreciate your trade on google today and your perspective. carol: more importantly, when google reports earnings. still ahead on "bloomberg markets," after getting beaten up at the start of the year, nasdaq is making a comeback and we have your market check on that coming right up. ♪
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i let's get you first
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worded news. mark crumpton of the news desk. senator mark kirk became the first republican to meet with supreme court nominee merrick garland. refusalcized the gop's to hold confirmation hearings or a vote on the nomination. i understand it 16 republicans thinking about meeting with judge garland, and by leading by example, i'm showing what a rational responsible guy wouldn't do that really wants the constitutional process to go forward. of threek is one senate republicans to say that the judiciary committee should hold hearings on the nomination. detroit's school principals are among those accused in the kickback scheme said to be worth millions. office saysorney's 12 people face charges, including current and former principles, as well as an administrator and a vendor. prosecutors say the scheme
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involves school supplies that were rarely delivered. is national football league demanding that "the new york times" retract an article published last week about concussions. the newspaper called the league's research flawed and compared it to the tobacco industry's response to the dangers of cigarettes. in a letter from the nfl's law firm to the papers attorney obtained by the associated press, the league says it was defamed. oscar-winning actress patty duke has died. she won an academy award as a teenager for her role as helen keller in "the miracle worker." she's built on that success playing identical twin cousins on the popular sitcom "the patty duke show." patty duke was 69 years old. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. carol: mark, thank you very much. markets closed about 30 minutes from now. at the guilty little at the nasdaq. talk to us about the action
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because we saw a rally after janet yellen. yes, powerful reversal day for the nasdaq and u.s. stocks in general and a powerful rally. we have the nasdaq higher by more than 1.5%, led by technology, some of the top performers today, especially after janet yellen's comments including apple, amazon, microsoft, and facebook. those for stocks comprise 21% of the nasdaq, less than 10% of the s&p 500. hoping to explain the breakout performance of the nasdaq today relative to the other averages. taking a look at microsoft, the second-best boost to the nasdaq today, shares are higher on the bullish comments out of pbs. one analystould expects the cloud opportunity to expand organically and through acquisitions and he says that the company is on track to meet long-term revenue targets. the stock has been stuck in a range for some time, perhaps suggesting it can break higher. one stock trading lower, tech stock trading lower, ebay.
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those losses have been paired dramatically. barclays has downgraded the stock to an underweight. there is attractive valuation, the company has us history of stock buybacks any think it is not enough. shares are down 12% year to date. i want to go back to one of the tech names, talking about facebook. abigail: quite a winning streak. facebook is up seven days in a row, the longest winning streak since september 21 last year. yesterday the company oculus rift, the virtual reality headsets started shipping outfit today instagram started saying it will be posting longer video posts. all of this is on pace to close at a record high. carol: quite a run, that is for sure. abigail doolittle at the nasdaq. janet yellen has signaled that rates are likely to stay lower for longer and that sent stocks higher today. you heard julie breaking it down earlier. her comments sent to the
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volatility index lower. the vix remains in check after spiking at the start of the year but is it really calm waters ahead for the financial market? chad morganlander, nice to have you with us this afternoon. obviously we're focusing on janet yellen. do you think, waters are in it because chad:? because of her dovish stance, cancers of that is yes. perhaps the market can grind higher -- the answer to that is yesterday perhaps the market can greg hybrid long-term it will not be all that great, perhaps 6%. carol: it is an all in thing for global central bank's of this point, right? we've got everybody, from china to the u.s. bank, we're going to protect our markets right now. chad: that change happened when
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janet yellen decided they were going to take more dovish stance. the market what reaction is and why you started to see the vix go lower substantially. not only today's trade but over the last several weeks. carol: are they right to do that, though, in your view? chad: i think they are. carol: why? chad: the u.s. economy has not hit is the velocity yet. when we look at the unemployment rate, the percentage of people actually working in the united states, far less than it was in 2007. is mortgage credit growth still tepid at best, growing at recessionary levels. carol: doesn't get back to those levels or were those levels unrealistic? chad: no, i think you will get back to the result is over an extended period of time. three to four to five years. it is not going to happen over the next 18 months. i think the federal reserve will
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have to lower their -- i don't think we are at full employment. , she islation forecast telling everyone, she is signaling, as well as dudley and fisher, that they are comfortable with a higher rate than 2% on the inflation front. carol: it is very interesting great i feel like we are in a new world era. do you have faith that everything that janet yellen is the european central bank and mario draghi are doing, that it will ultimately have an impact and growth will get back on the normal trajectory? and inflation, for that matter? is the real story -- we don't believe that the federal reserve or any central bank intervention can create the economic activity. it can create stabilization within the financial system. that is with their mandate is right now. they don't speak about that as much. they can loosen financial conditions -- that is what they are attending to do. the credit growth by private theor credit growth, either
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consumer or corporations, is what is going to actually give that real economic impulse into the u.s. economy and the global economy. carol: it makes me think what is really important is what we get in the next corporate earnings cycle and what we hear from companies about the outlook and whether they are spending and whether they are hiring. chad: so the composition is going to go a little like this when it comes to the earnings call -- top economic activity within the emerging markets. $. we're starting to see dollar weakness. what we are forecasting now is that the headwinds over the last 12 months actually is starting to abate. you can see growth, economic earnings, earnings within the s&p come of 3% to 4% from this time on for the next four quarters out. cap and revenue growth. which is a little bit better than what everyone is expecting. you do, portfolio manager, when you hear what janet yellen had to say?
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now we know they will take it easy, or so it seems, the next data point tells us differently. what do you do as a portfolio manager to adjust where you are investing? chad: if you're global and tactical emerging markets look like opportunity, we have put a position on their. recently over the last four weeks. high-yield bonds on the fixed income side. spreads were so wide. perhaps they start to narrow with it. when it comes to the united states, we like value overgrowth. we continue to like companies that are well capitalized and growing, rising dividend companies, for example. carol: which has been a popular play this year. chad: high dividend stocks have been the popular plays. we would be more neutral and go with growing -- carol: what about the fixed income side of things? blackrock and others are saying you want inflation-adjusted part of your portfolio to maybe janet yellen and those guys have it wrong. think that trade
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-- i am going to go the other way on a trade. inflation the next 12 months will be rather tepid good with that said, we think the federal reserve will raise rates but after the election, maybe one time again at the later half of the year. and you want to start to look at high-yield credit as one of the better opportunities. carol: i like to ask individuals who have seen a lot of different market cycles if something doesn't feel different this time around. they will say that we have gone through crises before and we have had tough times before. but i don't think we have never really been in an era where we have seen such global, easy global monetary policy. we don't exactly know how the story ends. chad: so here is what is a little different this time. there is a global deceleration of growth, and that is coming from the emerging market side. the massive credit growth -- carol: largely china? chad: china, brazil, the countries of that sort. that credit growth is abating. it grew the global economy. we are looking at the global
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growth of 2.5%, far less than the imf. the federal reserve and all of these global central banks can affect this only somewhat great it is not as if they are going to have a massive impulse into solving that problem. carol: it is a reminder that the emerging markets are that much more important. great conversation. thank you. chad: thank you for having me. carol: chad morgan lander -- let's get that right -- thank you so much. coming up on "bloomberg markets ," the luxury housing market remitting white-hot in new york and london. what does that mean for the larger global economy? we will hear from robert shiller. ♪
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carol: this is "bloomberg markets." i am carol massar. let's get a check on the markets for you. we are, what committee minutes away from the closing bell. stocks, a bit of a rally falling the very dovish comments -- following the very dovish comments from the chair janet yellen. .6%, up 101 points on the dow jones industrial average. nasdaq better by 79 points. really outperform or other the percentage basis. check out the s&p 500. that index of .9% at 2054. it is time for the bloomberg business flash. are leavingaders the bank, that according to people briefed on their departure. one of them was head of the high-yield trading while the other ran the business for trading collateralized loan obligations. it is a type of debt that is
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packaged and packages those loans into bonds. ceo michael corbett plans to eliminate only a few thousand jobs this year. sonny olson may be on the verge of bankruptcy, corn to a regulatory filing that according to a revelatory filing. revelatoryg to a filing. its debt was driven to almost $12 billion at the end of the third quarter. surpassed $1as billion in advertising sales for the summer olympics in brazil. the network is on pace to set a record for the most natural advertising for any single event. -- national advertising for any single event. it reached the milestone two days before the start of the london games. flashs your business update. now to the u.s. housing market. the s&p case schiller home price index showed home prices across the united states, 20 cities heated up in the month of
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january. where are the hotspots home prices in portland and seattle are growing at twice the rate of the national average and economist for whom the index is partially named, robert shiller of yale university, was on bloomberg tv earlier today and he talked about the strength in the u.s. housing market and what it means for the overall global economy. robert: we are threatened by the world, the world economy, but here it is looking ok. house prices are going up in a number of places. i think that is a sign of our general optimism. >> professor, just in terms of what is happening more generally in the u.s. housing markets, tell us what is happening in hotbeds like new york, for instance. a lot of talk of what is happening to property prices in london as well. problem for china, too, the moment. by their financial stability risks there? robert: well, the times we live in encourage a brand home prices -- encourage upper end home
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prices in rolled centers. that people being are fleeing somewhere or other and they look to places that are capital-stable, like new york or london. the high-end housing market -- that is not what we are reporting on in the case schiller s&p data today. e: professor shiller, the cities that posted the biggest year-over-year gains were san francisco, and portland and seattle are almost commuter towns to san francisco. is there a danger that we are seeing more and more in the case schiller data that it is those hubs that are creating the ball and not exactly the rest of the country is benefiting from different? -- from the upturn? robert: it is interesting, techie cities that i would add vancouver to the list. not in our data but they are pure of boom in home prices, too. those cities are high-tech,
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glamorous. right now we are in a mood in the world economy today of trusting technology and not trusting our hands to do later. -- to do labor. on the other hand, some high-tech cities like boston did not do well. it seems to be partly regional. it is interesting to see how much home price movements correlate over hundreds of miles , communities that are hundreds of miles in diameter. this data is slightly backward looking. provides information but it is three-month rolling for the last three months. what do you anticipate we will see going forward because we had the big upturn to the case-shiller and then it is stagnant with maybe a little rise over the last few months. robert: well, if i look at the recent expectations data, they are modest. both for one-year and 10-year. 4%, 5% range. it is not overall, it is not a
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bubble. but it seems as if there is demand, especially in certain places, that is pushing up home prices at double-digit rates. it is looking like some of -- a few years before the boom in home prices that we saw that led to the financial crisis. >> can i ask a question? how important do you feel housing market is in terms of adding to growth in the way that obviously there were a lot of second order effects in the run-up to the ball, and now -- in the run-up to the bubble and now the dozens and to be very much, let's say, additional consumer spending associated with housing directly. robert: right. i have a paper with case, the same case as the case-shiller index, that argues that he will affect is stronger for housing than it is for the stock market. we think of the stock market as driving consumption but most
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people either don't own any stocks or the own them in retirement accounts. it is kind of not something that is salient as a home price. when they see their home price going up that affects consumption expenditure and it can affect it a lot. carol: that was robert shiller of yale university on bloomberg tv earlier today. coming up on "bloomberg markets ," close of trading just minutes away. let's get a quick check of the market averages for you. pretty much holding onto our highs of the session. nasdaq is better by 1.6%. and .8% gain for the s&p. for those keeping track, s&p and out positive for the year. ♪
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carol: this is "bloomberg markets." i am carol massar. julie hyman answer market check
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at this hour. holding on to our highs. julie: holding on to the gate in the week of janet yellen talking once again about being dovish here, being cautious and measured with the pace of interest rate increases. giving a big the to the market, in particular to technology. nasdaq leading gains and then some. of course in the nasdaq is still the underperformer year to date. it is the only of the three major averages that is lower this year. the s&p over the course of the clearly wentsee yellen spoke the stocks shot of and as carol said, they gained on that strength and it remained at the highs as we head to the close. technology shares, some of the large-cap tech stocks are doing particularly well today. microsoft getting after positive commentary out from ubs, apple as it wraps up the case from the government, the government now dismissing its case, discarding its case, you could say. amazon and facebook. on the downside, interestingly,
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there's still some weakness within the large-cap banks. that is the town away, although making up forain losses in financials. we are seeing the rates move lower as you might expect. there is this expectation that the fed is going to be measured in interest-rate increases. the yield on the 10-year and that you have in your off today and lower than it was even before yelling began speaking. 1.80% on the 10-year. similar movements on the dollar which has gone lower and in gold, carol, which has gone higher. carol: julie hyman, thank you so much. as we head to the close seven minutes away, one more look at your major averages. julie breaking down on what is going on in today's train. green across the board after said chair janet yellen's speech. no real surprises in her comments so why did stocks get such a big boost today? dani burger is a stocks reporter at bloomberg news. what are you hearing from
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traders and investors on why we got such a big boost? >> certainly we got something to take stocks out of neutral. they can geteason here, they had yellen giving them these dovish comments. sort of helping with the more hawkish comments we got from the fed governors speeches. investors see that and it confirms this view that they have had and it really helped to get stocks out of that neutral territory. carol: i keep wondering that if the fed has to keep rates low, it needs the economy isn't doing so great, right? typically even as the rate start to rise the markets go up for some time afterwards. i'm trying to get an understanding of the psyche of the market. dani: it is this really difficult economy between deciding what is important to trade on. looking out in the distance, is the economy heading towards a recession? i think investors have decided that is not going to happen, at
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least by the way stocks have been training you can say that -- carol: or not immediately. dani: not immediately. just in general the like the low interest rate environment. especially the dividend stocks doing well here, which is partially the reason investors have been telling me that valued stocks that pay a lot of dividends have been looking pretty good recently. carol: julie did mention the same stocks. what investors have felt this year -- who are the leaders? we ended the year with a mega caps doing well. in this your off the february 11 flows value doing better. if you look for the past 15 sessions, all but one have ended higher. the longest stretch since at least 2012. now investors imagine you are trying to figure out who is a leader. you might say that we are back to technology. carol: amazing. crazy how things turn so quickly.
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next focal point is the job market. and it will be interesting to see whether we have this mentality of good news and bad news and maybe that is will finally be good news. carol: hard to make sense of it all. dani burger component are 16 and bloomberg news. that will do it for "bloomberg markets." "what you miss" and the market close, the market closing in just about four minutes. what a different day from the beginning before janet yellen. miller trading. now we are at our highs of the session. the market close coming your way. ♪
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gabriela: we are moments away from the bell. >> alix: we are moments away from the bell today.
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alix: u.s. stocks rally into the close. the question is, "what'd you miss?" janet yellen it says it is appropriate for the fed it to receive with caution and raising of the rate. we going to look at the market reactions today. founder tompeake ward weighs in on aubrey mcclendon's dad. and what is next for natural gas. alix: plus, carnival the first u.s. cruz liner to go to cuba and more than 50 years. we will dig into the numbers. we begin with our market minutes. this is definitely the day where i should have "when the doves cry," as my theme song. tracy: no, "when the dust laugh." alix:

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