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tv   Bloomberg Markets Americas  Bloomberg  March 22, 2018 2:00pm-3:30pm EDT

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scarlet: we are live at bloomberg world headquarters in new york. here are the top stories we are covering on the bloomberg and from around the world. stock struggling, hans gaining. we will take a look at investors if in focus at the federal reserve in the escalating trade war. playing defense, wilbur ross weighing in on president trump's oldest at get to level the economic lane field with china. he joins us this hour. the ceo of goldman sachs jets done his future at the firm. closing in two hours time, we have a stall on the way here. things are really accelerated with the announcement of the new tariffs. julia: we had bigger losses earlier when the dow and nasdaq were down 2%. lower, our fleeing with a potential for a
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trade war bid the facebook fallout did the resigning of attorney as the chief around for special counsel investigation. that is one reason for the decline on the day. this is fitting of what we have seen all week and this is a four-day chart of the us of the 500 you on monday we saw declines on the facebook situation, the data crisis coming up. bookings on tuesday, nothing to write home about th . as scarlet mentioned we opened lower on the stability of a trade war -- possibility of a trade war. now we are trying to come off of come off of the lows. we are down for a second time in the week. we have some outperformance, , here is some of the
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big upside movers. take a look at these notes, up 28% after they put up better than expected. the same thing for lands end, then move up could be a short squeeze. there is a 26% shortage their have government spending bills extending the company for two years. investors really sure that news. let's take a look at the wider selloff in terms of the sector. this is the s&p 500. first of all, most sectors are lower. the only sector higher which are are reallyer, they benefiting from the fact that rates are lower and the bonds are rally di.
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the bottom is health care and financial. they are not doing well with the rates moving the worker that is moving over from the not margin interested let's take a look at some of the movers but those sectors paid we are going to look at jpmorgan and bank of america, these are the biggest rates on the bank of america. setback andwas a the lung cancer drug acquired by another company, johnson and johnson also downgrade not as he is said that government spending bill could be weighing on some of them. overall, a down day for stock. julia: let's get a first word update with mark crumpton. president trump's lead lawyer in the russian investigation has left the legal team. he has resigned. in any mail to the associated press, he said he loves the
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president and wishes him well. this come several days after the resident added a new lawyer to his team. house democrats have a wife or president trump, don't even think of firing robert mueller. >> mr. president, we are watching you. the american people are watching you. if you shut down or throttle the molar investigation, by firing jeff sessions, rosenstein, or molar, you will plunge his country in a constitutional crisis. firing mueller was a red ofe, congress stopped short protected the consequences there they said all options will be on the table. the houses passed a one $.3 trillion spending bill which would offer a government shutdown and increase funding for the military and other domestic programs.
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house at the compromise measure to the senate which is vote tomorrow. mick mulvaney told reporters president trump will sign the bill, saying if funds his priorities. when the students in florida returned from spring break, they be required to wear clear backpacks and where id badges at all times. attacked said that is or as may be installed at the florida school. the gunman who carried an assault weapon in a large bag carried 17 people last month. global news 24 hours a day powered by more than 2700 journalists and analysts, in more than 120 countries. scarlet: thank you so much, mark. let's get some perspective on the economy with bill rhodes. great to have you with us. monthlyo get to your
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outlook on the markets shortly. if you look at what is happening today, the white house announcing $50 billion of tariffs. we know the fed chief declined to comment on what a trade war would mean for inflation. clearly, investors are trying to absorb all of this information bbc stocks falling. bill: i think a trade war, the extent these chinese measures reflect that. it is not good for economic growth. not good for inflation in terms of slightly higher inflation. it is hard to know, the bond market may be reacting to the slower growth. not the potentially higher inflation. i really don't think this situation in terms of chinese trade is a reason to be leaving the market.
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julia: what do you think the reason is? bill: i think investors are the chairman yesterday. they saw him as pragmatic versus academic. they heard him say, basically, one important thing that you can glean from the statement, we raised rates 25 points. i think the market knows better. my outlook rough first two the possibility, and indeed probability, they have another 50 basis points to go. speaking of jay powell,
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your thoughts on his debut, certainly holding that press conference, how would you performance? -- grade his performance? it is pragmatic really not necessarily pedantic, he does that yellen model did. the fed have a 30 year look at the economy that does not exist. he views that is historic, as opposed to relevant, that is all for the good. julia: what you are saying about withpparent exaggeration, a 2% inflation, you'd think the race cannot get much about 2%. sorts ofreating all
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problems. just explain what you think the impact would be? bill: i think it depends on other central banks in china just raise their short-term rate yesterday. in mys down to a question view, perhaps in his view as well, up out what the neutral rate is. i think they are trying to find that out. think, we are all just thinking, historical evidence neutral rates should go back to 2%. if we have inflation at 2% going forward. i think that should be there too. fed think otherwise.
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we are just going to have to see this meeting to meeting. if unemployment goes slower but does not have that wage increase. 10 year treasuries around 3% for a long time. you agree, they cannot say anything different way than what they are sacred. they don't have the kind of script they are talking about. they could indicate that to the markets and investors at this stage, couldn't they? bill: i don't think so, but also yes. so now, it is a meeting to meeting decision, based primarily on wage growth and economic strength. with investors, volatility will have to depend on this number ice of those.
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they will be at 2.2 5%, that is not what they are suggesting. , that is ok.f 3% it is probably reflective of what i would call it a few months ago, a hibernating market. scarlet: you call that the current beast. in your monthly newsletter, your monthly outlook, you have identified leverage that will come later. leverage on whose part, on the government's part, on household part, can you explain the? bill: i think in part with the u.s., the real problem is going to be with china and elsewhere. , there is no problem with my way of thinking that leverage on the government side can always help. not household
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debt, household debt would reduce significantly since the great recession. there have all these corporations that have been kept , it may now have to roll them over. some high yield if the rates continued to go higher. scarlet: i ask because household debt was the catalyst of the last recession. how worried should we be about debt in the next recession? bill: i don't think it will cause the next recession. i will add to what i just said it in terms of short-term rates, you talk about a locked in terms of the treasury side. suggest investors in
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thessions should look at curve. that curve has led to an even more than the treasury curve. that has historically led to a showdown -- slowdown in the economy. this is the of central bank looking at this data and seeing how it will all play out to this is talking about the greater trade going forward. how should investors look at the market today and how they should be positioned? bill: i think they should position for slower growth. the atlanta fed puts up the first quarter suggests around 2% -- as opposed.5%
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to 3.5%. room to comemuch from consumers going forward if they do not get wage gains. we have had the central bank raising interest rates for some time. these are all potential symptoms of a recession that shows equities are really starting to realize this. julia: all thanks to bill gross, great to have you with us. they goldman sachs ceo breaks his silence after the secession when this month. why he is worried about life after goldman. from new york, this is bloomberg. ♪
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♪ scarlet: this is bloomberg markets. julia: the goldman sachs ceo spoked for the first time since the news of their secession plan -- succession plan hit the streets. why it may be hard for him to leave his post. i >> am not sure i want to die at my desk. i don't think i am going to leave because of something else. i think i am going to have to have the discipline to leave when i want to state. pull inor more let's our bloomberg reporter. did we get any clarity on if he is staying or leaving? >> we did not. we know it is a stepmother we have heard him talk about in the past. imminent.
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couple ofreporting a weeks ago, he would be stepping down and the timeline for his departure, maybe as soon as this year, he said that broke warning was wrong. it could become right. that is something. comments i sawhe was his wife telling him not to resign his post. [laughter] was interesting is, some of the influences for twitter, he thanked president trump. i thought this was fascinating , >> he said what was passing to be an ceo as many of his peers are not. the one thing he really admire president for was his ability to use and intermediate the press.
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an interesting comment. time, when the same he tweets, he tends to tweak things that are critical of president trump's policies. >> it is true. he did mention his lead into that matter was recognized. group thatking to a was not filled with huge trump supporters. he did, on that a little bit. scarlet: what did he say about the next downturn, the next crisis when there is one? >> he did not get into it too much. he said banks are generally and good shape. to the nexts crisis. he made the point the recent they are in such good shape. have movedose assets
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onto to the sovereign of the government. reserved up the federal balance sheet. he also called out greece, actually. this is something he is thinking about and wants to know if the next crisis is driven by a sovereign crisis. scarlet: thank you so much. he has been monitoring his comments made at the boston college event. speaking of europe, the president of the european areission and eu president holding a press conference. if you want to watch this, you can check out life go on your bloomberg. some comments on facebook, with everything going on. wilbur ross discussing
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president trump's just announced tariffs and the escalating trade war threats. from new york, this is bloomberg. ♪
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♪ this is bloomberg markets. i am julia chatterley. scarlet: i am scarlet fu, it is time now for the business flash. citigroup getting into gun control, the new policy for business partners to paris -- prohibits firearms to customers 21 or younger. their business clients that offer credit cards to citigroup as well as clients looking to raise capital. 2utsche bank could make about billion dollars in their asset division. according to two people familiar, they plan to sell shares at $20 each and have been running investors below that price risk missing out.
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about 27% ofsell uws, this is valued at about eight billion dollars. experts have reviewed video of a crash that killed a woman, the uber may be to blame for it she crossed one lane of road before being hit. the self driving sensors should have detected her despite our conditions. brought renewed scrutiny to autonomous vehicles. that is your bloomberg/update. julia: let's take a look at what is going on in the markets made we are looking at the dow. digestingen investors the administration talking about on u.s. imports. that is some confusion if
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would be quite a significant amount relative to the deficit. if it is not, it is the amount of products that could receive tariffs. terms of sectors, you have the financial sector, it is not the nasdaq it is the underperformer. health care, industrial, some concerns with steel and aluminum, they are not going to have as much light -- bite. on, that isng going what we see in the financials. have that pressure. scarlet: the president speaking rate up rate he is participating at a summit in washington, speaking to millennials. he said the president should have dealt with key issue is better. he also referenced the sanctions
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tariffs onsts -- china. he is saying that is making trade fair. from new york, this is bloomberg. ♪ mom you called?
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not the other way around. >> thank you, president trump signed in order to the painted
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away for imposing tariffs on --nese imports during imports. doing a going to the .ection that is just a fraction of what we are going to be talking about. >> house speaker paul ryan is to vladimirimself putin for his reelection victory. speaking today, has thoughts about who is clear. notladimir putin does
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respect democracy. i would not have the kind words to say if i were speaking to him. the house approved the measure 256-257. of the probe is going to allegations that muammar gaddafi help fund his campaign. released under his judicial supervision. nationwide strike causing major disruptions to trains and other todayes throughout france
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. according to airport authorities, 30% of flights have been canceled today. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> a quick check on equity markets. a leg lower on u.s. stocks. only verizon and coca-cola are higher. ,hen you look at the s&p 500 defense sectors are gaining as rates go higher as well. let's get you a check of commodities. if you look at oil prices, some increases in africa.
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equities certainly weighing on oil and well soft commodities avoiding, we are fairly confident and wanted to highlight down by almost 2.5%. 1.4%.n see copper off by certainly, a lot of talk around china not helping as well. stocks are tumbling today, among the decline as you can see u.s. stocks down. administration says it tomorrow.d allies great to have you with us.
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>> it seems to be the reaction in the market starting to get a sense of what exemptions might mean. it could mean brazil, australia and argentina, korea. these are major importers for us in the united states, when you add on top of the canada and mexico. >> russia is a big one, but obviously they were not the part of the exemptions. all of this goes into effect tonight in the market seems to be reacting to the headlines today. >> may have enormous turks in china. if i'm not mistaken, and is still part of the.
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another big one. we're still looking at about 65% out of all of our imports if they are under these rules not be subjected to these tariffs. just negotiating? an exemption is different perhaps in a pause in the position? >> you are asking a question that everyone seems to be a lot of people or buyers and they were filing exemptions. they had multiple exemption applications. you have to apply for exemptions . everyone is still's scrambling to figure out what this means.
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the people are maybe angry and probably still asking themselves what is really going on. do you think they realized andapy this crazy scramble it is better than nothing? >> it is hard to say they were not aware. they have a little bit of a blueprint when you look at the bush tariffs. ofre was an entire process exemptions that came retroactively veritable barrasso was saying we are taking this very seriously. we are going to do this as quickly as possible, but when hundreds tong
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thousands of requests, people are asking themselves how quickly can they move #is hard to imagine they did not expect to have this large garden of questions. obviously, they feel like they can handle it. you for your perspective. >> president trump ordering sweeping tariffs on chinese goods. a with china, we will do section 301 trade action. billion,be about $60 but that is really just a fraction of what we are talking about. just mentioned $60 billion.
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on these numbers final or are they still in flux? >> they are not final, but they could be lower. basically, the president can't create his own press release. theom line, this is like steel tariffs, we don't know. they will publish within 50 days to do it and put out a list of all the products and of one gets to take a shot at it. if you have a reason why it shouldn't be on the list, 90 days to find -- published a final list and you will see a lot of exemptions there. you wonder what the end game is. do they want the chinese to come to the table and negotiate? do they want a commitment to
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lower the deficit? of whereo real idea the administration is going with this. >> that will lead to more pain for them. >> we don't know all these items on the list. are reportedly in apparel good on here and if that is the case, companies are going to have to face a choice. they will need to absorb it or make less money. know exactly what, but in theory it could raise prices. was berniejulia theers was right about
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interest rate. >> you are saying about not being sure the u.s. administration was actually trying to achieve here. how they are expecting the chinese to react? >> they expect retaliation. basically, robert told the beate today that there will collateral damage casualties and they have to accept that going in. michael, thank you so much for >> coming up, the commerce presidentweighs in on
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trump's latest round of sanctions and the looming trade war between the world's two biggest economies. from new york, this is bloomberg.
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>> the white house taking aim at china, present from ordering tariffs on chinese goods in a tradehat could escalate relations between the world's two biggest economies. commerce secretary, great to speak with you again. >> can i start by asking how you arrived at the $50 billion that we talked about today and
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whether that would gradually increase. >> i think that was an illustrative figure. me clarify you. understand this is a placeholder for now until the exact number is published. only talking about on chinese goods or tariffs were $50 billion? >> it would not be tariffs. it would be the amount of goods in which the tariffs were levied. >> we are only talking about the finger of $12.5 billion at this stage. if you compare that to the u.s.-china deficit or the billions of dollars the
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president is talking about, it feels pretty small fry. this is meant to deal with the specifics, namely the intellectual property rights and that is why it is somewhat limited in scope. >> it feels like a small some. the president is talking about billions of dollars with a -- worth of theft. his message was hundreds of billions of dollars in trait that every year. why is this so small? partis is not the only that will get thought. as you will see in a matter of few days, there are other components to it that you have to look at the aggregate, not
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just this one isolated piece. are we other components likely to hear about? it is not my practice to get ahead to the president. >> china has indicated it will respond in kind. they are warning of retaliation .n everything what is the plan on how to respond or better yet, have you heard from them? >> they have not seen the details and they are being thoughtful as they always are about what their response should be, so it would be very surprising to hear anything had aic until they have chance to analyze the
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implications of what the president is doing. >> what response on -- are we expecting from the chinese? >> i expect there will be a response. these are very thoughtful and serious people. men know the president is being very thoughtful and serious. i don't think anyone is going to have a knee-jerk reaction to any of this. trade is a very complicated issue. intellectual property rights even more complicated and therefore, people will take it seriously and carefully. >> i understand people are approaching this with the time and care that it deserves. can you talk about the state of negotiation with the chinese? >> the president has made the a $100 billion
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immediate reduction in the trade deficit. that is a request being discussed and we do not have a definitive response to. >> can i ask about the world trade organization. is the u.s. administration planning to sue china as part of the negotiation? >> i think ambassador lighthizer announced that is one of the components of it. we've had a number of trade disputes with china that have already gone to the wto. >> with regards to the reduction you just mentioned, happily we presented any idea to china how they might come up with that reduction? are a number of ways they could achieve if they
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desire to do so. the simplest would be to divert to the u.s. purchases that they are already making products from other countries. for example, lng. we were over there in november and when we were back at mar-a-lago, there was discussions of tentative deals announced. jenna needs to import large amounts and from their point of view, it would be logical to reasonmorbus than for no other than to diversify their sources, but also have the side effect of reducing the deficit. similarly, they have threatened various agricultural products could be more purchased in the u.s. than they are at present. there are a number of products
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that so far are being resisted by the chinese from meaningful import. they could relax those restrictions so there are a whole variety that the chinese could do and there are ones that could be more painful for them eliminating some of the some of the other coordinatehat exports and cause disruption in international trade market, including ourselves. the whole variety is large and waysse and there are many one could go about solving this problem. you we areo remind speaking to wilbur ross at this
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moment. on, i have aove question on intellectual property rights. have you expect to enforce intellectual property rights? >> i'm wondering what kind of steps the u.s. can take. issue is tosee one put tariffs on certain products the intellectual property rights. there are other things as well potentially relating to of -- ents and all kinds
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>> what countries will be excluded tonight? >> when you say permanently excluded, the president has not announced any permanent exclusions. what he has announced so far is about canada and mexico and success ofending the negotiations with them. ist we need to accomplish not through the particular mechanism. there must be other issues that is equally beneficial. disappointment from corporate and particular, they are looking at the suspensions and exclusions here.
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this has far less by. what do you say to those disappointed? are those going to be beneficial? >> there are a whole lot of questions. theare assuming that exclusions will not come with any constraint or steel or aluminum. that is not a well-founded assumption. we are not going to sacrifice aluminum.and for purposes of the section 232, legislationenabling
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that we are in acting. for those purposes, national security is not defined as military defense. it is a component of it, but there are broader economic components because we recognize economics to come -- economic security is national security and without economic security, you cannot have national security. >> thank you for joining us. >> the president tweeted out trade wars are good and easy to win. if that is the case, how do we know when we have one at trade war? there are so many moving parts, exemptions and otherwise.
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>> they are trying to negotiate. now you're talking about the united states getting independence. that is a fascinating point for me in addition to everything else. expect to have a measured target. once again, giving you an idea of things in the last 10 minutes or so. back spend a driver, facebook is being.
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the steal we have mentioned underperforming for >> you look at the performance, rates and utilities are faring, giving the interest rates are moving as well. the 10 year yield coming down this weekend on the heels of the federal reserve, raising rates by 25 basis point and indicating it will raise rates free time this year. -- three times this year. coming up, we'll discuss how the antitrust -- in years. this is bloomberg. mom, dad, can we talk?
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seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. >> welcome to bloomberg market.
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♪ york over thenew next hour. here the top stories we are covering. focus to ahould possible escalating trade war. what it means for the future and millions of consumers nationwide. .he fox debuted the reason why it hasn't worked cut out. >> let's go to check on the market with julie hyman. we still have this selloff. we still see the equity trade today reflecting these concerns about the tariffs on china.
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the details on them at the be announced. the insurgency is an issue for the market. all about an issue for stocks going higher, preventing them from going higher. you also have what is going on on the technical side. if you look at the moving averages, you have the 100 and $200 they. was rightnt today, it at it, but the present level was right below that. moment and asthat we dig into what is moving, financials have been thisfically tonight today
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is one of the groups being effective with the most. they have the added problem of a downgrade today over william blair. it could lead to pressure on sales and gross margin. many have a spinoff. fedex down 4%. caterpillar is taking a hit. proxies, youat the have import prices which have
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been taking a pretty consistently since 2017 and then , really been -- the s&p a broad basket and then you have technology, hardware storage and yellow -- stocks in yellow. all of these have taken hits in recent days on what these tariffs are going to me. >> president trump's lead lawyer in the russian investigation has left the legal team. in email to the associated press, he said he loves the president and wishes him well. the move comes several days after the president added a new lawyer to his team. democrats on the house judiciary committee not to shut down the
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special investigation into russian meddling. such action would send the country into a constitutional crisis. >> these tantrums are more than merely the online musings of a passionately were of fox news. these statements are threats from the president against our rule of law to >> the democrats warning comes as republicans appear to vote on a final report which will say that there's no evidence of collusion between moscow and the trump campaign. inat least six more killed the czech republic. there is no word yet on what caused the explosion. the british prime minister says
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european union leaders must unite. may call the attack on a former russian spy brazen and reckless. clear it is not the fact orders -- not effect orders. >> the u.k. is seeking a condemnation for the nerve agent poisoning. russia has accused britain of shutting it out of the investigation. i'm mark crumpton, this is bloomberg. our bloombergr deal. you have ceos from att and time
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warner defending their deal. if successful, at&t will emerge as a powerhouse. joining us now from washington analysts fore antitrust litigation. she is at the courthouse where the trial is taking place. gave opening statements. tell us what you need to know. result ofaim as a this merger, the 90 million subscribers will all face an increase in costs and they claim -- it will show an increase in price over $400 million will occur if the merger goes forward.
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and ity that time warner will be a weapon to harm the incumbent and satellite distributors of programming as well as up-and-coming internet rivals. put to see this world differently in the department of justice. they believe they need this merger in order to compete with some of the large internet platforms to better target advertisers and capture some of the digital advertising back to television going to the internet. issuesso have a lot of
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and claimed the inputs are improper and is correct and puts 50% decreaseows a for cable subscribers. ago where two days the department of justice was wrestling. are they being included? better support the part we left behind a couple of days ago. it is not clear if some of the documents would be, but it is certain there are some documents that look harmful that will be included. the department of justice cited some of them today including one .rom turner's ceo documents like that will be
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admitted in this trial. >> i know we will be back to you on this. >> it is really early. what did we find out today? to come up and testify in the trial. i think the other thing interesting is the first piece of evidence is going to be an executive from cox. -- i thinkhey will we are in this would place where the idea of vertical and horizontal integration are redundant terms. the companies at&t is competing with is much more than that.
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know,ternet joins as we -- -- tellis it mean for us what you're seeing. >> miss is a great function. if you look here, you have time warner, at&t spread. belowtrading about $10 which is why this tells us now primitive chance of this not going through and it is a deales, that has early taken 17 months. whiche 21 is a point in time warner can walk away unless
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they are going to extend negotiations. it has been going on a long time. time warner believes this is a deal that should fly. they were shocked when justice came out. everything appeared to be going well. i think time warner, they are willing to try and push this one through. >> the break on this is so low. >> they thought this would be easy. >> but move on and talk about the latest. is partatest going on of an ongoing settlement. the playoff from this is
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interesting. you have a not quite controlling showing it substantially, there will be companies looking at and -- and i >> elaine wynn, she can see her stakes reduce now. >> that is right. basis sort ofe being rationalized and the issue licensing to operate a casino in massachusetts. and whether there is a real economic case. >> what is elaine wynn sayings? >> she is saying she did not have a husband who did not treat her well. >> thank you for the update.
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>> what state you a quick check on the markets. u.s. stocks heading lower once again. major indexes off by at least 1.7%. now a 511 point drop for the doubt. see, there is buying in treasuries that is pushing down the yield to 2.8%. you have now all 30 members of the dow lower. this is bloomberg.
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>> this is bloomberg markets. bloombergw for the business flash.
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a final offer to buy pfizer's health unit. according to people -- people familiar with the matter, it could buy business up to $20 billion. a south african media company is cashing in on one of the greatest venture capital investments ever. they are selling $10.6 billion of shares of china's tencent. invested001, masters the german soccer league is getting closer to allow investors to buy majority stakes in soccer clubs. unlike most professional sports,
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teens are generally controlled by an association made by members rather than outsiders. >> that is your business flash update. >> joining us with some reaction , exit strategist here chung. taking a look at one of the sectors here, the financials one of the biggest underperformance. -- under performers. >> it seems like it is a big risk off rally. strong, fundamental stocks and now what you're seeing is a new interjection of uncertainty. what we are seeing right now is a persistent rally.
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financials are not as directly related, but a lot of it might be related to the financials technology and because of that, it makes them an easier target to pick off. >> look at rt on the bloomberg and it shows different rotations on the sectors. it is now moving to the weakening phase. obviously, with the headlines around facebook, that is causing companieslook at the with a new, skeptical eye. was is something that was bound to happen given the strength of tech? a strong caset is against why you might want to be more bearish on technology. unilateral. they drove most of a we saw in
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the market value last year. again, it is an inflection of expectations. we went from technology being the jump in and now you are seeing these pressures coming down like it never has before, so really it is the inflection of expectations we've had. >> we are showing the session there.heir -- we are some 40 minutes out and we did go through a week ago. you have to make the point you are still in this phase to be talking about earlier.
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-- you have seen a lot of weakness in technology, the biggest leadership result in the market last year this is really that correction playing out. to -- what about the fundamentals because the data we have gotten is fairly mixed. a lot of people expected. the see a lot of changes? >> we saw that and now more recently, that is starting to flatten over.
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see this isrting to a big inflection. people no longer have this upside trajectory. there are these potential headwinds where it is not just an open-ended earnings growth which i think is also partly driving what we're seeing here. thee was talking about watershed moment. this shift and perhaps we are looking at things differently. only at that point and what level should we be watching here? >> definitely an inflection point in the market. i think there is a fundamental basis going through the later half of this year. corporations have this extra cash flow that they can deploy. inflections, just
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retesting that we had and for markets to muddle through this process until we can regain that process. that have been waiting for second test because typically when you have the first correction, you'll get the chart recovery and then you look at the test again. >> talk about the catalyst in the coming days. we are getting to the tail end of the earnings season. >> i think it will continue to be policy driven. i think in the interview that you guys had, there's more potential announcements for trade, so that is definitely the downside. to the upside, i think it has to relate to how to corporations are going to react going forward. i think that would help boost
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confidence and gives investors an opportunity to take advantage and get themselves back into the market. asked some of the irony is the under performers hoping for greater protections not concerned about exemptions. peter chung, thank you so much. as we mentioned, u.s. stocks taking a leg lower here as we approach the final 30 minutes of trading. you see movement in treasuries and therefore, that is pushing yields lower. a look at the most actively top -- youks, the don't have any financials until number six and you don't have any other kind of countries until november -- until the 13th, which is going. let's get you to julie hyman.
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>> as we watch the selloff theing steam, we have trading barton picking up today. it is already above average today. volatility picking up as well. i know we have a fixed curve -- showing on the bloomberg. has us how the fixed curve been changing. >> things are starting to sort themselves out. by last week, all was hunky-dory. we have a nice, sloping curve which is the green line and it seems like everything is fine. at the top is the life curve in you can see how we have gone to backwardation. when you get a surprise like we
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have gotten between facebook and trade war talk, people go running. >> scarlet and julie were talking about this. how much perception is there that something fundamental is changing? i think people are coming around to the realization. if you talk to most people, they will to you that the valuations and earnings are still ok, but i think there is a psychological change. the facebook story was one of those things. you had a stock that was largely bulletproof and then all of a all reverses. when it happened, it takes things with it. >> it is being caught up in all this today and you are talking about a spread on the spirit talking about this strategy. is one of the stocks
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that could get caught in a terrified. would be a logical place for retaliation. -- strategy was to if the stoxx break through 20, it falls in you defer your costs. >> thank you. here, the 10ground year treasury bids. more discussion
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mark: i am mark crumpton with first wrote news. president trump site in order to impose tariffs on billions of chinese imports and president says the move is to punish
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for what he says is the theft of american technology. pres. trump: we are going to be doing a section 301 trade section that could be about $60 billion. that is a fraction of what we are talking about. mark: the white house says the president but direct the office of trade representatives to publish a list of tariffs for public comment within 15 days. french prosecutors have increased the pressure on former and hent nicolas sarkozy is under investigation for illegal campaign finance and corruption at the link to allegations that the late libyan leader help sarkozy's 2007 campaign. sarkozy, who says he is innocent, was released on wednesday night but is

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