these things, but it's not right here and right now. but it will happen. moody's and s&p will help with that decision on the 26th. the eu has plenty of time to delay this. thank you to our panelists. vincent, marcus, joining us. firstcheck in now on the word news. here is courtney donohoe. courtney: bloomberg has used -- learned that the u.s. will be withdrawing from an international treaty that gives chinese companies discounted shipping rates for small countries shipping to the u.s.. it's an arrangement that benefits china. the secretary of state, mike pompeo, says that the u.s. takes the disappearance of the saudi journalist seriously. thatsh officials has said he was killed inside of the pompeo said he didn't have anything to say about that. plane carrying melania trump to philadelphia had to be returned to washington to an area airbase because of a smoke inside of the cabin. everyone is five and safe -- fine and save according to a spokesperson. it is not known what caused the problem. i'm courtney donohoe, this is bloomberg. guy: thank you very much indeed, courtney. coming u

build the digital and cloud strategy. liz: sell salmon. buy moody's. >> moody's and s&p control the credit ratings market. there will be more debt in this country around the world five years from now and county on s&p and moody's rating it. liz: we'll put his picks on facebook.com/lizclaman facebook page. [closing bell rings] howard marx what to do during the wild ride. he is owner of 120 billion-dollar oak tree. david: back to the green. you lose or gain 100 points depending what minute. melissa: seriously close it, fast. done! david: i think a lot of traders are thanking goodness it is 4:00. stocks bouncing back following two days of steep declines. roller coaster session for the dow, opening strong. in the middle of the day it fell slightly into the red. that was a scary point. in the last hour of trading, just about two minutes ago it was up 380 points. melissa: right. david: coming down again but not losing it all, far from that. down to 279 points. s&p 500 closing up more than

those entities funded sovereigns. they have no rating from s&p or moody. so what we have built is a unique and new window into credit risk that did not exist before. caroline: so you are shining a light on the credit risk within the banks. what is the data telling you about where we are in the credit cycle? we have been talking about fed minutes, rates on the rise, what you starting to see in the 30,000 you look at? william: we slice and dice any different ways. risk, and geography, i do not know if you want me to jump into other retail stuff we have done. caroline: let's go with it. william: we've done a little quality,on roughly 340 large retail names in the u.s.. three years oft history in our data, you can see a pronounced downward trend in quality. in the last two to three months, it might be bottoming out, but we do not know. the u.s. department of commerce released interesting data on retail sales. is you more interesting split this data by loaded, high , and when doing that, the trend is much more pronounced. -- tell really is -- retail debtu look at the high retailers, it h

yesterday. the pris. target is $ separately s&p downgraded their credit rating a moody put it on review for psible downgrade. but shares rose to $12.32. chevron was added to the conviction bye list over at goldman sachs. the analyst says rks to the stock have been overstated. the price target is $142. the stock rose a fraction to 124.74. >> the same analystch at goldma downgraded congo to bye. the drieted the valuation at $81. the stock fell 2% to 78.28. >>> weiatters now a simply called ww was added to jp morgan's foc list. the analyst says the stock's recently pullback makes it more attractive. price target is now $120. that's atock rising 1% to 73.35. >>> still ahead, pepsi's beverage sales return to growth just as the the company's ceo exits. >>> the fda conduct add surprise inspection of juul's headquarters last we can. the agency i looking for additional information about the company's sales and marketing practices. inspectors collected more than 1,000 pages of documents. the surprise visit was part of the fda crackdown on ecigarette companies. >>> more people are drinkingps s tea

downgrade. connell: okay. >> because both moody's and s&p have them on watch essentially for a downgrade. they do have cash flow problems. they do have a lot of debt. this was a pretty easy decision for culp. the question, can he pull this company out of the muck? or do they have to go back to do radical restructuring things that have been planned, a complete break up of the company and end ge as we know it. that is still a possibility. connell: i was watching varney this morning. he had dennis gartman about the stock. i don't know whether dennis will do this today, he said, you know what? after they cut the dividend, historically look at some of these companies, that is a good time to buy the stock. he was thinking about it. >> listen the biggest bear on ge is this guy at jpmorgan, i think he has a 9-dollar price target on it. once it starts getting to nine, getting to valuations, if you broke the company up you get more than nine dollars a share. that is where people are betting this. justice department investigation now. connell: accounting issues. >> accounting. they had an

? >> 100%. that's on investors minds for sure today in particular we're expecting to hear from s&p later today around their deliberations on italy's credit rating last week moody's downgraded italy down one notch investors are watching what s&p does and as well as any further developments between the eu and italy. that is very much an unresolved situation contributing to the downward sentiment we're seeing in europe. >> julianna tatelbaum, thank you very much for that european trading update >>> coming up next, we'll bring it back to the u.s. shores we have an early morning selloff in progress. stick with us. "worldwide exchange" will be right back the dow down by 340 points at this point hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yeah, i'm afraid so. knowing what's important to you... it's okay. this is what we've been planning for. thanks, bye. that's what's important to us. it's why 7 million investors work with edward jones. a moment of joy. a source of inspiration. an act of kindness. an old friend. a new begi

of weeks by s&p and moody's. we are expecting a downgrade. debt to stay in investment grade. that is the important bit. moment,think at this the rating agencies are ready to go any further. yes, you will be on the lower rung. for at least one rating agency, bbb-. it doesn't mean italy is going to drop out. i know you cover investment grade, but are there better opportunities in investment grade or high-yield? the sub investment grade space, particularly loans. you have a floating rate asset class. much in thehad as u.s. market. in the area to look at. investors are looking at at the moment. juliette: you are talking about brexit. don't forget the irish in terms of the hard brexit. sticking point at the moment in terms of the brexit negotiations. what happens to that border. they want it to be as open as can be. opportunitieshe for the u k to stay may be bit closer to the eu. these are interesting negotiations. nejra: we are seeing lots of headlines coming through. netflix, just one example. something like five deals pulled in the last few weeks. u.s. a more opportune market at the mo

moody's did not cut italy to junk rating. we do have to look forward a little bit. s&p global ratings will issue its verdict to this friday. investors are waiting to see what they will say. . for: the chief economist moody's analytics had harsh words for italy's government, which makes sense. stable is not a word i would think of when i am pondering the future of the italian economy. >> that's correct. the chief economist at moody's analytics repeated his of you that the italian budget is a mistake and he points out that higher borrowing costs will eat into whatever economic boost there may be. anna: thank you very much. , bloomberg'soe editor in loan -- in room -- editor in rome. a six billion euros sale of fiat's corporate unit. carmberg has been -- fiat's parts unit. bloomberg has been reporting on this. we will get you stocks to watch as the sun comes up. this is bloomberg. ♪ matt: welcome back to bloomberg markets. seven minutes to go until the start of european stock trading. we go to bloomberg's dani burger looking at fiat chrysler. annmarie hordern is covering ryan there. --

friday. a risk on day. u.s. futures have turned positive. we got the news out of china. s&p futures at 0.25%. the benchmark did close be hot -- below its moving average. italian bonds trading lower. removed the immediate moody's- movies -- removed the immediate threat of a downgrade. thank you for your patience as we talked to michael o'leary. i know you love talking italy. spread is below 300 basis points. it might not say below there for long. you are saying it won't either. >> the risk has not changed. -- the fact iss they have -- the spread is down because the italian government -- theying a popular have not read broken that chain. that chain. you had a lovely twelve-month period in europe and we have problems. who cares what moody's says? is trying tont drive through an agenda that says i'm going to spend more money in a come -- a country invested.avily it has not changed that -- the dynamic. we did not get here because of moody's. -- manus: when you see these significant moves in btp's, are we going to see fools rush in to btp's? is this an opportunity to look at more truck betwe

company and need to cut dividend yet again. last year ge cut dividend to 48 cents a year, s&p has downgraded credit by two notches to bbb plus. moody's preparing to lower credit on ge. take a look at shares, less 30% this year. bugatti, super car at paris motor show and sold out, only 40 bugatti are being manufactured making most exclusive car, the sleek new ride can go 0 to 60 in 2.6 seconds, that speed will cost you a lot of cash, $5.8 million for this car, yeah, the bugatti devo to release in 2001. get out check kevin kelly. london, san francisco, san francisco, singapore, many users took to twitter to complain about it, others took it in stride, one person says, quote, instagram is down and immediately our account is hacked and life is over. people can actually socialize in real life. the app has more than 1 billion active users. those are your headlines. maria: funny, years ago that would not have been a thought. kevin: how am i supposed to know what people had for lunch? oh, my gosh, what was your breakfast like? i have no idea. did you have the huevos rancheros, i would nev