tv Bloomberg Markets Balance of Power Bloomberg March 19, 2019 11:00am-12:00pm EDT
phloem bloomberg world headquarters, i'm david westin. welcome to "balance of power." soros brief today, kevin and the white house. from brussels on that you's next andnd present -- eu's brexit. let's start with kevin at the white house. we have president bolsonaro coming. what does he want and what does president trump want? >> stylistically, they are similar to global leaders. the brazilian president crafting his image in the mold of president trump. but on substance, this is where things get interesting. president trump looking up some type of support, particularly in the region as he tries to get some support in the region for his border wall and the issue of immigration. from the standpoint of trade policy, this is where becomes a global chess game. the brazilians, they have that relationship with china and that has put the president, some
would say, at a different -- disadvantage and how you has been able to negotiate in terms of the chinese interference. just had the secretary of agriculture on the air yesterday saying he thinks the deal may double or triple the amount of imports of agricultural products -- exports to china. doesn't that have to come straight out of brazil? >> straight out of brazil. and that is really chinese shadow has cast itself over the u.s.-brazilian trade talks. i thought that was an excellent interview because it highlights the chess game going on at a bilateral way between the u.s. and china. with brazil as well. the final note i would say in particular with the china trade talks, yet agricultural exports perhaps tripling as the secretary said, but now you have the threat of china backing off on boeing purchases of the max 737 family. just the latest development in an escalating tension. kevin.thank you,
now over to maria in brussels. brexit is not finished yet. what is the next step in terms of extension? maria: it is not finished and it looks like there are many steps to go. fore are difficult powers the prime minister. she has been told no more votes until substantial changes are made to her deal. she did talk about the merits of a long maybe short extension with the cabinet and she will write that in a letter to the eu before she arrives in brussels. the eu will want to see a clear purpose for the extension and we understand they think they could still give her a little more a thirdput this deal to vote. almost this idea of a short extension with conditions just before brexit date to allow her the space to try to get the deal to the finish line. still, there are many countries who will tell you we need to know exactly what the purpose is but also the plan for the prime minister.
david: we heard from chancellor merkel and her editor asked her about you want a short extension or long extension and she would not even admit to that. she said, let's wait and see what they say. think that is because many here still think prime minister may could put it to a third vote or maybe get something new come friday, but also they want to see the content of the petition. they want to see exactly what the u.k. will request and they also think until prime minister may mix the first move, they just need to take a step back and wait to hear what she says. the negotiator of behalf of the eu will speak today at 5:30 my time and layout with a roadmap will look from now until friday when it comes to the eu. as the content of this petition, the request for more time from the u.k., they will definitely want to keep an eye on. david: thank you, maria. we want to turn to chad thomas
in berlin. what is going on with the commerzbank merger. she was also asked about the merger. this is what she said. >> absolutely a decision of private business, all of the challenges and opportunities and risks, and only the players themselves -- only the stakeholders themselves can evaluate that. david: we always take the chancellor of germany seriously, but do we take her seriously? there is been very is reporting her minister of finance has been in encouraging these two banks to get together. --these headlines are making these comments are making headlines in germany. the chancellor had not spoken out publicly until today. the fact she said this is up for the banks to decide and they have to make a decision whether this makes sense, is sort of contradicts what the finance
ministry has been at least privately saying, and to some degree, publicly as well, they're looking for a champion we know, privately that the finance ministry has been pushing this deal. interestingly enough, the chancellor's chief of staff gave an interview in german media saying this is about jobs. surely, she would not have given a interview had the chancellor not agreed with those comments she was putting out there. many are wondering where does the government really stand on this? there was another even today in frankfurt were the chief person cap the finance ministry was supposed to give a speech and we have been told before the speech that he would be talking about the deal. guess what? he canceled the event and they sent someone else. that person spoke about brexit. there are a lot of questions swirling around where the government stance. a reminder for our international audience, the government owns significant stake in commerce bank. it is not just a theoretical
approval. the government will have to sign off on any doubt that gets hammered out here. david: thank you so much. that is chad thomas some of berlin. now let's get a check on the markets. we're looking at u.s. equities in the green across the board, stocks rallying ahead of the federal reserve meeting outcome tomorrow. many market participants expecting the fed to maintain its dovish stance. seeing a bit of a turnaround with the dow jones leading the way, rising. it had been under pressure in recent days with boeing dealing with its woes. a look at the s&p 500, rising close to .3%. most every sector in the green today, being led by consumer discretion stocks. middle-income terms of the sectors, but if you look more deeply into that, the
semiconductor stocks, the chip stocks doing particularly well. here are some of the biggest movers. all up. last week, this copy said they were buying a technology company and they have invested. many analysts and the keynote from the ceo will be pivotal in terms of the outlook for the company. 5%.also rising more than liking a lot of analyst that. morgan stanley zynga provides a significant opportunity. outon rising 2.5%, earnings tomorrow. couple of analysts are out with cautious moves. there continue to be challenging conditions. we will wait to see what we learn from the earnings. let's take a look at the markets a little more broadly. a lot of people talking about the lack of volatility across
assets. this is the s&p 500 low volatility index in the white. volatility inw the blue. you can see the bigger virgins -- you can see the big divergence. finally, a few more movers for you. the packaging companies, you can paper.y're focused on clean says it is going to up the use of plastic in its packaging. coming up, the chairman of the white house council of economic advisors will step what he is forecasting a gdp growth rate of 3% a year over the next 10 years. live from new york, this is bloomberg. ♪
david: this is "balance of power." i am david westin. we turn to courtney donohoe. courtney: a fire at a petrochemical storage facility in houston is burning for a third day and covering the city and a plume of black smoke. people more than 20 miles away have been able to smell the fumes, but officials say there are no immediate health concerns. -- store on fire story liquids used to make gasoline. the fire will likely burn for two more days. there could be another blow for boeing. troubled exclude their 737 max 8 jet from a list of u.s. exports it will buy as part of a trade deal. the planes could be key turn reduces it surplus with the u.s. the 737 could be replaced by other boeing models. the leader for life of conflicts on is standing down.
ofthe leader for life context on is standing down. he has been president since the position was created in 1990. he is 78 years old and will remain head of the security council and of the ruling party. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more 120 countries. i am courtney donohoe. president bolsonaro of brazil arrives in washington today for talks with president trump on a wide range of issues. he comes at a time when brazilian stocks have shot up compared other emerging markets, especially since bolsonaro's election. eric, welcome back to the program. give us a sense of what president bolsonaro needs to get from the president from this visit. symbolicds to get a
pat on the back that he is headed in the right direction. he is clearly looking for specific things. access to the oecd, investment from the u.s., particularly in infrastructure and other areas as well. this was an important visit because of his recent trip to davos. along the same lines of trying to attract foreign investment into brazil. david: what about trade between the u.s. and brazil? we have an issue looming with the u.s.-china missions. we heard from the secretary of agriculture yesterday and he said china good as much as triple. listen to what he had to say. doublingld easily see or troubling that kind of number over a period of two years, four years, five years. david: that cannot be good news for president bolsonaro. >> the trade war between the
u.s. and china has actually been to brazil and argentina's benefit another producers in south america, particularly brazil, which is such a major globally competitive producer. if china is beginning to soak up products from the united states, they have to come from somewhere. that will be to brazil's detriment. david: the brazilian markets are of quite a bit in recent times, particularly since the bolsonaro election. are they out over the skis a little bit? the intention is there and certainly the expectation and hope is there among the investor community that the reforms president bolsonaro has spoken about will come to pass, namely pension reform -- which is so critical -- opening up the economy through trade. these are big issues. the problem is they have been big issues for a long time. there politically fraught. president has said he is going to take steps to really address those issues.
the investor community clearly hopes he is able to. my question is over the longer-term, what happens if you get reform but it may not be what everybody wants or is not as robust as everybody wants or if indeed the brazilian congress , which is not under bolsonaro's control, decides it was to go a different direction? for now there is clearly an optimism about brazil. president posner compare as the camp and -- campaigner? he said we're going to have a cleansing and wipe these red thieves off the country. they go to jail or leave the country. he said some really awful things on the campaign trail about brazilian citizens like the indigenous community, afro brazilians, women, the trail of and fortunate rhetoric is very long.
president,s been some of that has been subdued. i think the business community is looking to see what actions are taken and try to strike a balance between what can be done on the economic side and then on the political side what bolsonaro does or does not do. you have to remember he was elected last year, really, because he was perceived as being not corrupt. this is the issue i think many brazilians are looking at in the context of their own domestic affairs, trying to rid corruption from the resilient system. -- brazilian system. this something he says he wants to do. issue i have to blue president trump will talk about, that is venezuela. what is it president trump could do for president bolsonaro or vice versa? >> venezuela is top of mind a president trump, indeed, the entire administration. bolsonaro has taken a different
position than his predecessor. they are on -- they are aligned in terms of rejecting maduro wanting to see changes in buttics in venezuela, brazil has clearly said this is not the time for use of force. it does look like there will be a continued focus on sanctions a venezuelan citizens in the regime as well as humanitarian assistance. many venezuelans are crossing the border not only to columbia, but brazil. these are big issues. they need cooperation to deal with them. brazil fundamental is has realigned its approach to venezuela, and i think the white house has seen this as a cooperative partner not just on venezuela, but latin america across the board. david: eric, thank you so much. eric farnsworth. coming up, boeing facing increasing scrutiny from both regulators and prosecutors. did the company will too much later over the 737 max 8 approval process? we will ask a former faa
watching "balance of power." lost moreres have than 10% since the ethiopian airlines crash and amid increasing scrutiny. faa employs warned as early as seven years ago the company had too much sway over the approval of new aircraft, and now bloomberg has learned u.s. federal authorities were already exploring a criminal investigation and a how the was certified to fly before the fatal crash nine days ago. for more, we welcome stephen wallace. licenseds also a
pilot. thank you for joining us. for those of us were not only from lay with the faa on how it works, explain how this investigation is going forward into the certification progress -- process. how long is it going to take? hard to say how long it will take. data, ad data recorder source of final report when i's are dotted and t's crossed, i'm not sure. international law is in charge of the investigation, ethiopia, they will was invite the country of manufacture of the airplane. so the official is the national transportation safety board and the faa has gone as well and bowing. the whole community pitches in with something like this happens. david: give us a sense because we have heard about this, the
self certification, the faa certifying aircraft, now we have the manufacturer flying them, is this the case? does it pose a risk? is this because of budget constraints? >> i would say it is not because of budget constraints. i would say because the system works very well. the pilots licenses are given by designees. medical certification of pilots by designees. when you certify an airplane, there are many complex technical calculations. you meet the people who do these things, and they are purest engineers who virtually incapable of deception. i would say this, when you do something more subjective like the handling quality of an aircraft or the appropriate levels of training you need when there is a variation as compared to earlier versions of an aircraft, though subjective things probably have to take a harder look at the designee
process. david: is there a danger of regulatory capture? what is being alleged in the "seattle times" says the faa inspectors have got to close to boeing. >> i don't think so. again, most of -- i don't know. it is certainly a fair question to ask and 30 are looking very closely at that because -- and they are looking very closely at that. it appears we have lost two aircraft and so whether it is a failure that should not have happened were insufficient redundancy or crew training -- i would note none of the u.s. operators had a problem with this airplane, at least not a problem the crew could not readily deal with.
accident, interesting certainly, and that there are a combination of factors. clearly, something is wrong with the hardware, perhaps the software and perhaps the crew response. that: what is the risk this is probably competitive? boeing is a big competitor globally with airbus. -- theyally no connect are really no connect. report came out and part of it said the airspace system is changing rapidly. it affects the time and cost of bringing products to market. key drivers of history competitive's. competitiveness. new structures to continue to meet the demand for safety and most cost-effective manner. is it possible we are competing to hard against airbus? >> i don't think so. there's a high level of integrity in this whole business.
compete ones tend to the seton hall cost of fuel efficiency, not safety. cost, fueleat-mile efficiency, not safety. you don't hear one manufacturer saying my plane is safer than yours. there are some fundamental differences. airbus has made all of their airplanes fly by wire. boeing has not. there been many accidents with airbus aircraft were automation was a factor. the automation is anything wrong, but the flight crew did not understand it adequately. is a high level of integrity across the aviation community. thed: the president tweeted aircraft have got too complicated. is it possible there's something to that? boon toation is a huge aviation safety, fundamentally
because it allows the pilot to focus on what is important and not have to focus on keeping the and one on its altitude its heading. it is a huge boon to safety. in various accidents, like the777 that hit the daikon san francisco, there was nothing wrong with that airplane. it was a beautiful day. the crew did not understand the airplane was not in a mode where it was holding the proper speed. is that the crew's fault? david: thank you, steven wallace . this is "bloomberg." ♪
documents give more insight into the fbi investigation of michael cohen and they show michael cohen was being investigated for nearly a year before federal agents raided his home and office last april. michael cohen has pleaded guilty to tax evasion and making hush money payments to women who allege they had affairs with president trump. he will start serving a three-year prison sentence in may. record flooding has swamped the midwestern united states and no places been hit harder than nebraska. the missouri and other rivers have reached record heights and are still rising. a state of emergency has been declared in more than 50 counties. almost 700 nebraskans have been forced from their homes. in baseball, mike trout and the angels are finalizing the largest deal is boards history. according to espn, trout contract is more of -- is worth more than $300 million. trout is the winner of the
american league most valuable player award. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm courtney donohoe. this is bloomberg. david: 400 and $30 million, the a -- $430 million, the economy must be looking good. the white house has released a report earlier today. we welcome kevin hazzard, he is today -- kevin hazzard -- kevin hassert today's conversation in chief. kevin: is the 73rd economic report of the president and our job is to describe the state of the economy and to go through policy opportunities and policy challenges to make -- to help rational decisions. we have a 700 page book that has plenty of nerdiness for your viewers. david: i have not gone through all 700 pages but i have gone
through some of it. what are the high points for the american people and wall street to understand? the big news is how well the economy is serving people at the bottom. the most recent people who were hired, 73% came from out of the labor force. a lot of people said they were gone forever from the labor force. wage growth is starting to take off. 5 million people are off the food stamps. even veteran homelessness is down. it is not just the policies doing that. the fact is we have a recovery that is accelerating and that is the sweet spot for the american worker. the state of the economy is strong and it is serving well those who noticed -- who most need it. david: the job market has been strong in many ways. you are predicting 3% growth
over the next 10 years. the consensus of economists is we will not do that this year. kevin: right. that is what they said last year and i think you and i were talking about it about one year ago. people were saying you would have a 3.1% year, that seems high compared to blue chips. we are a lot more optimistic about the impact of our policies that a lot of folks relying on much older literature. i think the evidence last year was consistent with what we said what happened. a 9% cut in the cost of capital. we now with. it was about 9%. 3.1,id gdp growth would be we now with at 3.1. we set low income wage growth would go up. we now that one. i think our understanding of how the economy works which is grounded in a surge of peer-reviewed literature identifying the impact of policy on the economy, it is a sound
understanding and it suggests the boom will continue for a few more years. david: what about the numbers right now? we're almost a quarter of the way into the year. you have the atlanta gdp numbers coming in at .4% do you just believe numbers are think you can dig yourself out of that hole? kevin: there is residual seasonality. the first quarter keeps being weak and leaves being weak year after year, a typical first quarter is about 1%. andcond quarter is about 3% we are looking for that pattern to be in the data. withu look at was going on the equity markets and sentiment at the end of last year and compared to now, you can see the kind of stuff you would need to see in sentiment and markets to suggest he will go back to 3% is visible in markets. the data for the first quarter is looking week. david: do think slack is leaving the labor market?
20,000 jobs added. wages were up substantially. do you think that is an indicator we are running out of people to add to the labor force and we may have inflation around the corner? kevin: absolute we not because so many people are coming up the sidelines. 73% of the people came from out of the sidelines to having a job. we are drawing people backing droves because wages are going up so much because we have the capital spending boom we expected and that is driven productivity. thanoductivity is higher, wages could go higher and it is not inflationary. if we have a labor shortage and start bidding for workers and driving up the wages without any kind of enhanced productivity, that could be inflationary. what we are seeing is a sweet spot for the economy because of the capital spending surge. david: let's talk about trade. i will not try to take ambassador lighthizer's job away. you have a phd in economics.
i have less than that. one of the first things you learn is there a direct relationship between fiscal deficit and trade deficit. who gets the job of telling the president of the united states we will have a substantial trade deficit as long as we have a fiscal deficit. kevin: i think the president understands that. i was with the president talking about the economic report. he understands economics and he understands the links between these things. his focus has been to fix the asymmetry in the trade deals. the tariffs guys have on our stuff are higher than the tariffs we have on their stuff. something like 80% of product face a higher tariff from our trading partner. the president wants to level the playing field and i think you can see from all of momentum we have with the china deal and with the talks with europe and so on that he is getting the
trade reform other people but was impossible. if that is a big positive for growth. if you go back to last year's economic report, it was controversial. we used a model to show what happened growth of we got it and we are still on track to think that is what the trade impact will be in the next 10 years. david: i apologize. we had a viewer right in and ask a question i would like to hear the answer to. if the economy is doing that great, why are we borrowing $1 trillion per year? what is the answer to that? kevin: the president came into goal of ending the we are the highest corporate tax place in the world. there was a hurt in the took out fighter planes that do not have spare parts. there was military spending that had to happen. he is gone is the head of the curve on those issues and we
have more economic growth. since the president arrived and i arrived, the cbo humility of gdp forecast has gone up $7 trillion. more than that. the deficit forecast has gone up $1 trillion. that is a trade any person should be willing to take. the $7 trillion gives us lots of wherewithal to do with the deficit problem. david: on the subject of jobs, i want to give up somebody you and i both knew, alan krueger, the economist from princeton. formerly had a job the white house. on the specific subject of jobs, one of the things he wrote about was the structure of the labor market. i quote from one of the papers -- i think it is more appropriate to model the labor monopoly power-- from the buyer's point of view. is this an issue the administration is concerned about? some of the things that could be done in concentration or the
restrictive covenants that could suppress wage growth. i know president is dedicated to higher wages. kevin: absolutely. and we're all heart break and -- we all heartbroken about alan krueger's passing. he is a great economist in a great man. a generous colleague. i first met him in grad school and i watched his career take off and i was humbled by the fact that he accomplished so much. i think that paper you are talking about has a lot of food for thought. restrictive covenants have skyrocketed in the economy and it is something we are studying at the white house seriously because there is a lot of food for thought in his work that suggest these restrictive cover line are creating -- restrictive covenants are creating monopoly. it is probably much less than half of workers that have those restrictive covenants. that is one reason why the wages have gone up. we are looking into the fact that it is possible that restrictive covenant space is
where wage growth is a lot lower. we have taken that paper seriously and it is something we are digging into. david: i appreciate your time. kevin hassett. kevin: our thoughts go out to allen's family. david: kevin hassett. white house counsel of economics chairman. alan krueger died of the weekend. he was 58.
deals, and germany's role in the world. we have not the ambition to become a global power. we want to be an important obviously we have to look at those ambitions. >> on the problems of trade deals, to worry about fortress europe, fortress nafta, fortress america and also you end up with another fortress in china and this is how the world trade breaks down? fortresses will also have to trade with one another. i do not think this will be a future that will emerge. the current approach is invariably the second-best. , there is aad tpp different level playing field an agreement we make with singapore or with japan. the new nafta looks a little bit
different. it is only second-best because obviously each and everyone creates a level playing field but they are all slightly different. that gives rise to differences and somebody's going to exploit those differences, or perhaps not. be annal goal has to international -- a global economic order. for the time being that is second-best. obviously people will stand up for their interest but we in germany have discussed for such a long time the agreement with south korea that would be to the detriment of our automotive industry. the contrary was the case. openness has always reaped a reward. >> maybe we can going to fortress europe. you're a summit on thursday and that means brexit. u.k. --ker of the
>> >> brexit is independent of the summit. >> mrs. may will come in whatever manner she does. the speaker of the house of commons has told her she cannot come back with the same deal again. that naturally raises the question are you prepared to give her a new deal at the summit? i would say first that i in i'm nothat i admit familiar with the statute of the house of commons dating back to the 17th century. i was not familiar with those terms. i noted that with interest yesterday. now we shall see what theresa , what herell us wishes are, and we shall try to react to this.
this had been an agreement we had negotiated alone. was forish government , and under negotiations these past few days the wish was to have nothing legally binding with a view to the backstop. -- we willefully and what follow events the british government is going to say. i cannot say anything on how this -- >> if she comes and ask you for an extension, do you have any prejudice on your side? would you like to have a short extension or would you like to give them a year to sort out the problem? what i absolutely want to do,
i am very interested in having a very good relationship with written even after they have -- with britain even after they have left the european union. it is in the german interest and the 27 member interest. i take theresa may seriously when she says britain stays in europe. it will simply leave the european union. we have common interest because of our geopolitical situation. britain has always been a country that has been committed to the principle multilateralism . we have close cooperation and security. also internal security and defense. that is why we made provisions for the citizens to have as clear a legal situation as possible, even in the event of no deal. that will invariably be the
second-best we're working on until the very last hour of the 29th of march i will fight for , an orderlyrexit leaving of britain from the european union. david: that was part of an exclusive conversation with angela merkel. up, tesla's tough month continues. with the stock down again from elon musk's issues with the sec to issues on the factory floor. we will look into the reasons for the decline in the bounce back coming up next. this is bloomberg. ♪
more. emma: tesla does not like to follow a particular trend. we saw tesla open in the red. shares falling more than 2%. yesterday the sec said they were reiterating their call for elon musk to be held in contempt. this goes back to earlier in the when he tweeted about production targets that he had to retract. partec saying that broke of a court order deal he would get preapproval for his tweets with goes back to that secure tweet in august of last year. the sec now saying they have evidence to show elon musk got no preapproval -- not a single tweet related to the company got preapproval. there saying he needs to be found in contempt. less than an hour into trading in new york we saw tesla spike higher, trading into the green more than a percentage point in
now trading up close to .8% on headlines claussen -- crossing the bloomberg terminal that said it is postponing a planned price hike on its vehicles until wednesday. it had been due to come into effect until midnight monday. investors thinking that is good news. david: talk about the high-volume. there is a report that because of the high-volume, they're running something of a sweatshop at tesla. emma: that is right. we have other news about tesla. saying workers in its assembly plant in fremont, california last year took three times as many sick days for work-related injuries as they did in 2017. people taking that is indication of the pressure on the company that tried to ramp up production. you can see the figures -- 22,006 days in 2018. we know this is as the company in 2018. six days
we know this as the company wants to turn out cars on scale and get employees to deliver 30,000 cars before the end of the quarter. that is in 15 days. david: that sounds rough. thank you so much. republican congressman devin nunes from california has filed a lawsuit against twitter and a handful of its users. the congressman is seeking $250 million in compensatory damage. he claims the social media giant shadow bands conservatives. ,e are joined by tom giles bloomberg's executive editor for global technology. how serious is this lawsuit? criticism of the lawsuit is this is more of a publicity stunt then the idea he has an actual case. twitter has denied that it does shadow banning.
one of theemoved accounts in question and there has been very little evidence that there is such a thing as shadow banning or that exists in any systematic way on twitter. if you look at conservative voices are flourishing on who areand people criticized by the right would has plenty of followers on twitter and is able to get a following widely. think donald trump himself uses twitter to publicize his views, bashes opponents. -- bash his opponents. david: my understanding is shadow banning means you can see your tweets but other people cannot. there is also an allegation they
permitted and make money off of other people attacking mr. nunes and he is suing them for that as well. the people who did the attacking as well as twitter for tolerating it. tom: yes. some of those tweets are not very complementary of the congressman. in fact, i think what is he isant to remember is saying these are defamatory, these things have been hurtful to him. it is a question of do people recognize this as a parody account? it is clearly not coming from his mother. there is a new one, devon nunes cow, clearly not an animal tweeting. they are clearly parody accounts and this is a question of does a person have the right to put this out, to put this speech out and is twitter have the right to
let flourish on its platform? david: there is the further question of whether twitter is responsible for what somebody posted. it reminds me of the facebook situation with the slaughter in new zealand. many thanks to tom giles, bloomberg's executive editor of global technology. coming up, live coverage of the president's news conference with the president of brazil. the president is due to arrive at the white house any minute and we'll bring you any headlines as they develop. live from new york and from washington, this is bloomberg. ♪ you.
vonnie: there are 30 minutes left in the trading day in europe. from london and new york this is "the european close" on "bloomberg markets." seeing a nice bounce today. the euro stoxx 50 is up. up 33%,40 in paris is the dax in germany pushing through. in the united states, the s&p 500 is up .6%. chipmakers have a good day. micro devices with an opportunity for gaining in google, which kicks off today. that stock up 6% in the s&p 500. there is a halo effect. nvidia having its investor day today and it is the second-best stockser which makes the show nice gains of 1.4% for the group. the other stock is