scarlet: from bloomberg world headquarters, good afternoon. here is what we're watching at this hour. china stocks rebound after a wild week. they are trying to recover to they were start of the year ever. the dow is up by 22 points. scarlet: wall street gets good news. created 292,000 jobs in december. it could mean a set time for bonds. alix: cheap business opposite robert kinsale has an emerson back of his claim. -- has the numbers to back up his claim. scarlet: a quick check on the market activity in head of the julie releasing a bit of a bounce back although it is fading. julie: it's a bounce around.

the markets after a positive reaction to the better than estimated jobs report, they can't seem to sustain gains. investors are trying to figure out what ago video -- where to go from here. if you look at the s&p 500 over the course of this session, you see a lot of bouncing around. did get negative before recovering. we talked about how this year has been this far. it is still the worst start of a year since 2008 because of today's action. we will be updating that throughout the day. in terms of groups on the move, look at my terminal. pretty evenly split between green and red. utilities doing better today. consumer discretionary and tech rebounding from yesterday's decline. energy, health care, financials for me the worst performers. alix: i was speaking -- he said

the fall in oil is more important than the jobs number we had yesterday. oil keeps making these lows. have seen this correlation we've been talking about for quite some time. indeed energy stocks of a doing very poorly. here is the first week for the s&p energy index. down by more than 6% after already being the worst-performing group last year. oil plunged. oil today made a run at going higher. for much of the session and even after the jobs report. they are still concerned about volatility in china. there is still the oversupply issue. oil is not off by that much. down by one half of 1%. it did get below $33 a barrel once again. what has been going on with the 10 year, which is been having his best week since july. right now it is unchanged. 2.14%. considering that in theory we are in a rising rate environment

it's interesting that the first week of the year has seen a falling yield. scarlet: some breaking news crossing the bloomberg terminal. the president has vetoed appeal -- a bill repeating part of the affordable care act. it would've dismantled key parts of the 2000 -- the law. this sets theys stage for a similar effort if they win the white house. alix: let's check in on the first word news. >> think you very much. we had developed a where investigators think the paris attackers built their bonds. they confirmed traces of explosions are found last month and in brussels apartment. they also discovered a man sought in a connection with the attacks that killed 130 people. members of congress want tougher sections on north korea for its latest nuclear weapons test. house democratic leader nancy pelosi says a new measure and

that the regime could be voted on next week. each of their three previous nuclear tests deadly to a tightening of international sanctions. president obama took his case for gun control to the public last night. two days after he unveiled executive actions that expanded background checks for gun sales. he answered questions at a town hall style meeting in virginia. the president settlers for the public is skeptical of gun-control. >> issues like licensing, registration, the scenario where there is not enough national consensus at this stage to even consider it. part of it is peoples can -- people are concerned that it's a privy to taking people's guns away. >> president obama also said he will not campaign for any politician who does not support what he calls common sense gun reform. officials in oregon are trying to persuade a group of armed militiamen to end a protest. they are occupying buildings and

government property to many control of federal land. sheriffs met with the protesters yesterday, telling of local residents want them to leave. global news 24 hours a day powered by our journalists around the world. back to you. scarlet: we are going to return to the markets because we are after thee calm china-driven storm. the focus being the strong u.s. jobs report with 292,000 positions added in december on top of another 50,000 in revisions to the previous two months. alix: with uncertainty lingering, is it enough to keep the fed on track? david joins us now from boston. it seems like the rhetoric and the jobs never really has to do with the wage pressures not materializing. how do you explain a better labor market and not a lot of wage pressure? david: it sounds like there is still enough slack in the labor

markets despite a 5% unemployment rate that suggests there was that was negotiating power of labor's side of the table. we keep thinking we are getting closer to that environment but it has not appeared yet. i am afraid that come january we are going to reverse some of this jump because of the base effect in the calculation. january my look quite weak for which is again. it might take us longer for that materialize. scarlet: that might take some time. we want to get your thoughts on the market we are seeing today. we started off with a strong recovery but we've seen a quick fade late this morning. europe fell into the close. what do you make on that? david: i guess a couple of things. one, relative stability in the chinese market and in the currency market there. that allowed us to kind of focus on the jobs report which is pretty darn good.

it doesn't change the fact that we still don't know what exactly is going on in china in terms of the pace of economic growth, nor do we necessarily have renewed confidence they are managing the currency well. you see europe being more highly leveraged to trade and the markets are weaker than ours. not a lot is resolved. i will take a what if stability compared to the four day a downside turmoil. scarlet: he pointed out that markets are really on tender hooks now. you take a look at the labor market versus the gdp for the u.s.. edc and divergence. tracking atfeds seven tens to 1% of the labor market keeps getting stronger. what white of reconciling with the other? david: it is difficult to say. clearly the manufacturing sector is in a slump based on the ism numbers. the energy sector declining.

the service side of the economy is still expanding. twos hard to reconcile the until you get the manufacturing side stabilized or we see in and. there was also an inventory de-stocking cycle going on in a couple little bit. it's more important what happens and theonsumer side service side of the economy because it's much larger than manufacturing. we have a little stability but we're not hitting on all cylinders. scarlet: speaking of the service sector, let's talk about the financial services. you like the banks in general. state the case for why investors should be prepared to wait to get returns. all, you havef seen financials get hit pretty hard this week. expectations of rising interest rates have begun to fade. the fed says for rate hikes this year. the market is looking for two. we come down in the middle and

say maybe three with is not quite as aggressive enough to get the financials cropped up --propped up. for the banks losing the fourth quarter was sluggish. that will take a little steam out of earnings. and you have banks and will be exposed on the lending side to weakness in energy. double hurt some of them. -- and that will hurt some of them. we think the u.s. economy is pretty solid and banks and other financials should participate in that. even though it might be a more gradual pace and we think, we think rates will rise over time. alix: if you look at the 30 year yield of a five year yield, it would steep in which implies less rate -- hikes this year. what does that differ banks that are banking on the higher rates? david: it is not helping in the short run by any means. you see that reflected in the prices of the stocks. i saw a chart yesterday and some insurance companies that have really gotten hit almost twice

what the sector has done at large. will allsurers, they be under pressure until we get a better sense of what global economic growth looks like and what it means for fed rate hikes this year. alix: thank you for your perspective. scarlet: coming up in the next 20 minutes, the jobs report may have crushed economists estimates but it is as good -- is it as good as it seems? we are weighing in on equities and on responses. alix: nerves settle in china developed in investors expect next week. scarlet: online video domination. ceo its planes why he thinks tv will be eclipsed in four years.

♪ alix: welcome back. scarlet: it's time for the bloomberg business flash, some of the biggest business stories in the news right now. employers hire to more people than inspected in december. payrolls increased by 292,000 beating the highest forecast. the jobs report was also revised upwards to 252,000. is the second-best year for american workers since 1999. the jobless rate remained at 5%. alix: the richest u.s. colleges could lose tactic of status. republican representative tom reed of new york is proposing about 100 colleges to devote one quarter of their endowment income to financial aid or loser nonprofits that is. donald ross senior in your life insurance companies passed away. he doubled the company's assets

and mutual funds in the 1980's all shining junk bonds -- shunning junk bonds. he topped $50 billion. donald ross was 90 years old. that is the bloomberg business flash. alix: julie has a check on some the company rumors today. julie: we've been talking about apple and its suppliers. a chipmaker that relies on apple coming out with third-quarter revenue and it's below what analysts estimated. its previous forecast was $720 million. the shares were down sharply. they have been improving interestingly as the day has gone on. in terms of how important apple is to them, look at the terminal. here is corvo in the middle. apple is its third-largest client. samsung is's largest single client.

more like 14% of its revenue. analysts point out that even though third quarter was week for the company, the fourth quarter will not be as weak because of demand for some of those samsung products. we will be watching that one. asper apple itself -- as for , shares are backing bounce up by about 2.5%. a couple of suppliers to watch out for. this is not have to do with apple that we are watching seagate in western digital trading lower. even though these companies have tried to intersperse of five -- diversity -- they had tried to diversify away from pcs they are having weaker volumes. you know they held the line of pricing, they are seeing unit sales fall which is not a good thing. alix: thank you so much. scarlet: more on the markets.

the initial reaction to a strong jobs report was fairly positive, the bond market was not as impressed. alix: take a look at market reaction. what was your number one takeaway? jobs i don't think the report is the main focus today. china is devouring everyone's attention. a good jobs number is good. whether it moves the needle on the federal reserve interest rates, that doesn't necessarily mean it will do that. the focus is just on china. market just and the wants to devalue the chinese currency. central-bank efforts to fight the market just always seem to and disaster. the swiss national banking the

most recent episode this year. china really showing it does not have the firepower to keep propping up the currency as it has. i think that is the focus on all markets today with the job status sort of being a secondary item. >> i would say the bond market had a substantial response initially. we saw a real spike upward in yields. because the headline number was so good, right? the revisions upward seemed awesome and in the wages. the wages they disappointed in that really points to more of what the fed is looking for an with the assets in the recovery throughout the past seven and eight years. due to the fact we're still not seeing momentum in wages make people question what kind of jobs they are. creating is it sufficient to feel a true economic recovery in the u.s.? .e saw yields fall back down saying this is not good enough

for the fed scarlet: we got more of the same in jobs growth that lack of. wage pressures he said he did not move the needle. maybe that is significant because people are looking for a jobs report that could sway the fed in one way or another. mike: a lot of the focus is going to be on -- this is a huge number. almost 300,000 jobs in one month. we can expect to be blockbuster #that going forward and the fed realizes this. that number will start getting lower and lower is the year goes on. because we are so close to full employment. scarlet: because the weather got bad. mike: there's got to be all sorts of seasonality affecting things and maybe we will see revisions in the future months. there is a risk that the market could take a much lower job number. save the superstars seeing monthly job gains of 100,000, much lower than what we saw the trend being. i don't think that will necessarily be doving to the fed -- dovish to the fed.

it is found slow down his feet closer to full employment. maybe we are there already. to me there is a risk that a disappointing job number that used to get people excited a more dovish fed could send the wrong signal to the market. they might be able to tolerate and lower monthly jobs number than what we are used to. alix: what you're talking about in the bond market that we are backing off a little bit rate hikes. the market only expects t and the fed expectswo four. what kind of volatility is that one of creating? lisa: the markets up the fed has been way too optimistic for years and guess who has been right? the bond market and not the fed. my favorite thing today on bloomberg terminal is wirp fuction.

there is a new column in addition to probability of a rate hike. now is probability of a rate cut. you can see the right now there is an 8% chance of a rate cut. this month. this is amazing. people are already predicting the reversal of course of the fed. the chances of that are pretty much nonexistent. when you talk to most people they are not a threat to get to reverse course of this point in the number would not certainly make them. but the fact that people are sh on the economy and expect a fed a slowdown almost nothing as far as rate hikes shows the amount of pessimism right now. alix: or even some kind of rate hike. i've heard a lot of that. scarlet: one think everyone is focused on in the coming week is the yuan exchange rate against the dollar. it's the blue line that shows it losing ground.

what china uses the value is some currency, which is a basket of trading partners. the u.s., europe, japan, singapore, hong kong. there are 13 in total. in that case it has devalued substantially less against the u.s. dollar. lisa: this is the biggest conundrum. the more the u.s. strengthens, the more china with the use its reserve tickets in the fall of the u.n. -- yuan. are they going to build a look at the turmoil that brings the global markets as china offloads some of its $3 trillion in foreign currency reserves? this is a big question anything unknown mike: and there is no transparency and what they are doing. it's a big blank slate. that is not good. scarlet: thank you so much guys. for more fast commentary from gdaf" on theype "d

terminal. alix: are we heading for recession? we got a note that says investors beware. ♪

♪ alix: welcome back. investors should be long on cash and volatility according to a note from bank of america merrill lynch. we could see a sharp short fullback to as low as 1850 on the s&p 500. alix: david carter this hinges on recessionary risk. the following sharp shows how haveevels under 45 coincided with u.s. recessions 11 out of the 13 times going back and's world war ii. -- going back since world war ii. we getting close to that 45 level. alix: the circles indicate we have get to the level.

scarlet: even the manufacturing is a relatively small part of the economy, there was a correlation between that never going below the 50 line and earnings-per-share growth. if you look at a chart there but heading south on the far right side. upward momentum is desperately needed to prevent the first quarter from becoming a quarter of downgrades in earnings-per-share. alix: they quantify this. they say we get into this 45 area, we can see a 5%-10% drop in profits. 1.5% on the 10 year. when you look in the new versus the old economy, and that is tech versus the transportation average, what is the effect? they moved in tandem for a while. they've urged in the last month that you can see the nasdaq rolling over. we think the old economy is now dragging the new economy down. high flyers will not be enough to hold at the s&p. scarlet: those with the bank

stocks for instance. they say they need to see at least one of the following conditions met before buying stocks. pmi's above 50 in the u.s. and china. theway risk of merging in oil. policyhe fed taking a there is enough volatility or reset and natural prices. alix: they want to go along cash now. and binding get ready for some kind of bounce but not just yet. chinat: still ahead shares may have rebounded but dangerous signs remain. we will speak about currency wars in the horizon. ♪

from bloomberg world headquarters in new york, welcome back. scarlet: let's start with the headlines on the first word news. ramy inocencio has more. we had to president obama

and as expected, he has vetoed rigid -- legislation that would have vetoed his own health care law. it has been pushed forward by republican lawmakers since 2010 but this is the first time it's made it to the president's desk. the legislation would have cut funding for planned parenthood. fight against islamic state two people have been arrested on terrorism related charges in texas and california. one of the suspects is a syrian refugees about his travels there. no indication that he planned an attack on u.s. soil. south korea marks the testing of north korea's nuclear missile and anti-north korean messages. meanwhile, north korea celebrated with a fireworks display as well as dancing as a result of the birthday of leader

kim jong-un. the state department has released 3000 pages of e-mails from former secretary of state hillary clinton's private e-mail accounts but missed a court ordered goal by a week. the department has not released 82% of the roughly 55,000 pages of e-mails mrs. clinton turned over after leaving office. el niño brought record-setting rainstorms to california this week. still, it was not enough to bust the drought. san diego hit a new record for daily rain, getting as much in one day as they usually do in the whole month of january. still, the state is still listed as abnormally dry or in some form of drop. scarlet: thank you. feast or famine. at janus capital

group management says tough times are ahead for bonds if the fed does not rely on the right data. he told mike mckee this morning what he expects in the markets in 2016. bill: i think they are stable if the fed only raises interest rates by one or two times over the next 12 months. yt is well advertised that the asgest four, maybe as much 2.5, 3% in terms of fed fund. if they continue to believe that jobs are the critical element, as opposed to demand and global bonds have a yes, sad period ahead, in terms of down prices. ultimately, the market -- and i'm reflective of that opinion -- the market only believes the

fed can go only once or twice before growth becomes effective in a negative way. mike: you are certainly the market. what is your market function, what are you looking at to determine where yields should go? bill: when you want to look at is things other than employment and the unemployment rate. you want to look at real gdp growth, which the atlanta fed is suggesting .5% in the quarter. what you want to look at is inflation, which is reflected by commodity prices and currency rates. basically, you want to look at other central banks in terms of what they are doing and monitoring their interest rates. no doubt with the ecb is doing with their markets is important and reflective of u.s. rates. u.s. rates cannot go to wide relative to german bunds. stablethem suggests a

fixed income market, but one that does not return much. alix: that was bill gross. anotherant to turn to story putting pressure on global markets, the fragile chinese economy. scarlet: our next guest says that china ultimately needs a cheaper currency. as we saw, they are stepping in to stabilize the currency and make it firmer. how long before they take another step to devalue once again? >> the pressure will be inexorable. when we saw the move in august, many thought it was done and dusted. pboc said they made a realignment that they want to make. move wason and then that we needed to see something like a 20% devaluation because inhave seen a 34% increase

unit post labor cost, and without robust external demand, which they are not getting, they need to do something about it. astill think we need to see better yuan-dollar rate. there is substantial downside there. want to be moderating the pace of the decline, but we need to see this with a good seven handle. if the market is spooked by what it has seen, frankly, they have seen nothing yet. talking about the market being spooked, if you look at one indicator in china, things are not that bad. i am looking at the seven-day repo rate, so you can see the internal bank rate stress. and has been flat for 2015

relatively so for 2016. well off the highs from last year. is the market stress kind of a ghost, does it not mean that much and the signs are stable ?> >> we need to be cautious when we talk about market variables in china. you could hardly say that the shanghai market is a functional market. the big players are state owned the banks. they can pretty much put it where they want it. they are not subject to market forces in many respects. certainly, i feel they are harboring some nonperforming loan issues. i would argue one of the reasons you are seeing stress more generally reflected in chinese stock markets, you have had financial market reform running ahead of her form of the real economy, reform of the state owned enterprises, local

,overnment, state owned banks and grading of the institutions. one of your reporters was talking about the lack of transparency from the pboc. if you look at the website, it looks like a 12-year-old science project. we all talk about the communication error from the fed and the bank of england, and we are spoiled rotten compared to china. it is a big question and policymakers are not helping us calibrate the risks which are out there. scarlet: how should policymakers be responding to the public, to the chinese people themselves who are retail investors, to international institutional investors, to the broader public? should they say it will do whatever it takes? >> the big problem, todamentally, the yuan each go lower. but how do they do that, what are their options? a realld go for

depreciation, but there is no inflation differential in order to generate that. in any case, it would take too long. do you go to reducing living standards domestically? that is the opposite of what the fed wants to achieve. politically, that is a hot potato. left, nominals depreciation is where they are going. over the longer-term term, that increases productivity. so they are really boxed in. you can say ideally this is what they should do. they should let that currency float and be more transparent on the glide path and cut interest rates, but they will not do that. a paralleled expressive program about how they will reform. the other point i will make is how compatible is any of this with a one-party system in china?

this is the overriding thing. they say they want to give the markets more control, and that implies the state has less control. alix: so the 20% devaluation, when do you see it happening? >> i would say on a 12-month you. alix: michael ingram, thank you. scarlet: coming up, the volkswagen saga continues. when the german automaker will do with all those diesel cars that do not meet environmental standards. tube'snd we speak to you chief market officer. latest star wars film became the highest grossing film in the u.s. in all time, but what are its prospects in china when it premieres this weekend? ♪

alix: welcome back. we want to get to abigail doolittle who is live at the nasdaq, where she is looking at the latest news in stocks. the big story at the nasdaq is the somewhat wild volatility. we were up 1%, down half a percent, and now we're up modestly. the big story from yesterday are again dominating. health care is the worst sector drag on the composite index after biotech closed in a bear market yesterday. we reached out to a bloomberg biotech analyst and he says the fundamentals are intact. it looks like investors are starting to take a step away from last year's high flyers. today, we have amazon, apple, facebook, microsoft all boosting

the composite index higher, led by apple, even as another tookst at pacific crest down iphone estimates for 2016, joining many out there to do that, concerns around week iphone demand. that is dragging the stock down recently. interestingly, 84% of analysts have buy ratings. so it looks like the street still likes apple. scarlet: thank you, abigail doolittle. alix: you are watching bloomberg. scarlet: this is your global business report. fix. sets a higher yuan samsung takes a hit to the shrinking's mark phone demand. let's start with the

volatility out of china. after serious market swings, the government suspended it circuit breaker system. funds also bought more equities but there is growing criticism of their constant readjustment of market rules. the turmoil is a reflection of a set of confused policies. the pboc is putting money into the system, the government is buying stocks, and then they are taking money back out of the system to prevent the yuan from falling as much as it otherwise would. alix: switzerland's national bank expects 2015 losses to reach to one me billion dollars -- $20 billion. one more sign the global smartphone market is running out of steam. samsung posting fourth-quarter profits that fell short of estimates. phone shipments are headed for their second straight annual decline.

samsung also sells displays and memory chips to other phone makers such as apple. the consumer electronics show brought all the major players of the industry to las vegas this week. vevo's ceo talked about why global viewership is crucial. are onof our viewers mobile devices, 80% are international, 20% domestic. international is super important for us. is consideringn a massive car buyback in the u.s. from the emission testing scandal. vw may buyback-- those cars which do not meet u.s. standards. scarlet: it is time to provide context and background on stories of interest. today is the virtual reality revolution.

you have a face covering display taking over your site, while sensors mimic the body's mechanisms for balance. the result is the feeling of being someplace when you are not. the latest developments in this technology are a major theme at were major names are rolling out be our products at a rapid pace. will introduce a consumer version next march. samsung is selling the gear vr, a $99 set of goggles that uses it smartphone as a screen. the question is how far back vr goes. the first project dates back to the 1960's but virtual reality enter the consciousness in 1980's through movies and sci-fi novels. around this time, a silicon valley company became the first

to sell virtual-reality goggles and gloves. the technology faded for a few decades before being resurrected by smartphones. virtual reality has become a fancy form of entertainment. now the issue is whether the technology can break out of gamers and early adopters. mark zuckerberg said it could be a new way to communicate, and even attend college together. critics call it an expensive way to suffer motion sickness in the comfort of your living room. thank you. that was your global business report. for more stories, visit bloomberg.com. secret mores no people are getting their entertainment content online. many predicted to develop digital -- radio will soon overtake television -- digital video will overtake television.

our editor at large cory johnson caught up with the youtube chief business officer robert kyncl and asked him about how the surging viewers has changed the business strategy. >> first of all, the scale of the business has changed tremendously. inhave grown tremendously terms of engagement. we are accelerating. what does that mean? >> total watch time. i am surprised the numbers are that big. >> we are as well but we are working hard to make it so. >> what is driving that? it sounds a acceleration in adoption. by the facts driven that online video is mainly the medium of choice. we offer advertising that you can skip, which is something

consumers love, you can access our content on any device, wherever you want. it is a medium of choice. youtube is a popular choice. online video is just a growing tremendously across different platforms and is becoming mainstream behavior. we are the benefactor of that. cory: what are you trying to do with original content, what is your vision of original content? on ist we are working original content with creators who have become successful on youtube. we are effectively betting on winners on our platform. investing adoing is lot more money into the programming. that has been successful. we will offer this as part of our youtube service so that they can reward their customers. scarlet: that was the chief business officer of youtube speaking the cory johnson. up, there is one

place where the blockbuster star wars movie will not be breaking any records. ♪

alix: welcome back. has slippedr wars across the u.s. becoming the highest grossing movie of all time, bringing in almost $800 million. it could hit $1 billion according to some analysts. meanwhile, star wars is a less powerful force in china. is notieres tomorrow but expected to break any box office records. let's ask jonathan papish, who is at box office.com.

why will not do well in china? actually just opened in china, the midnight screenings just started. they are looking at about $2.7 million for the midnight. why it will not do well in china, i'm thinking, the market is just not there yet. you are looking at the boom in the box offices mostly in the third and fourth tier cities. you are looking at the interior cities in china, and they have not been exposed to the franchise as much as here in the west. scarlet: a lack of brand awareness. do people know that it is linked to disney? think they are beginning to see that and disney is really pushing the marketing of the film. scarlet: disney is super successful in asia and china. >> they are, so i think they are trying to connect that with the disney brand. alix: what makes a successful

movie in china compared to here in the u.s.? spectacle set piece films, blockbuster, big-budget blockbusters, popcorn movies, i would say. the story is not all that important to chinese moviegoers yet. they are not as mature moviegoers as, say, us. that would be the big pull. you are also looking at celebrity culture. see aill go and lineup to movie if their favorite star is in it. scarlet: for the movies with a storyline, you need a sad ending. alix: then this movie is perfect. scarlet: spoiler alert. expect overo you the next year as we wait for the next movie to come out, so they can capitalize on all of that in china? culturalired a

somebody whoo is went over to south korea to study music and then came back to china. so fans will come out just to see him. he will continue to be the face of star wars in china, pulling in these younger fans, pulling in these younger fans in the third and fourth cities. what franchises, blockbusters have translated really well to the chinese market? >> the highest grossing hollywood film in china is "furious 7." factoredch of things into that, paul walker's death, cars. you are not going to see that level of tandem in china -- fandom in china with star wars. transformers is a pretty big franchise, as well as the marvel universe. the last avengers movie, a

whole scene was in asia. does the film need to be shot in asia with asian actors, for the capacity for china to be interested? >> you can do it more subtly than some other movies did, and i think star wars is doing that. they can work in chinese elements into their universe. bb8,aster, the apprentice, he is a cute droid. i think he will play with chinese moviegoers. scarlet: thank you, jonathan papish. alix: we will be right back. ♪

scarlet: it is 1:00 in new york, 6:00 in london, and 2:00 in hong kong. alix: welcome to bloomberg markets.

scarlet: good friday afternoon. alix: here is what we are watching this hour. the political system continues to operate as it is today, we will take a turn for the worst. mohamed el-erian a warning to central bankers. he says they are running out of options for global economies. investors try to protect their portfolios in a tumultuous start to the year. many are using options on exchange traded funds to do it. how etf's are becoming the center of options markets. alix: is goldbach? -- gold back?

gold has its strongest week in a year. julie hyman has been tracking the movements and equities. ove.ave a big v-shaped m you thought there would be a big reaction in the markets after the big headline from today, but that hasn't been the case. take a look at the s&p 500 on an intraday basis. right now we are higher but it's been a rocky session. if you look at the intraday chart, you can see the bouncing around we have seen and the v that really bottoms around 11:30 a.m. a couple of different reads on a jobs report, but it may be that ing on it is overwhelming anything else happening around the world. take a look at my terminal.

oil, energy is the worst-performing group today. counterbalancing that, to some extent, telecom and utilities, but more heavily weighted in the s&p is information technology. that has something to do with the gains we are seeing today with the big cap tech stocks. punctuatesf this this crazy week that we have had among all asset classes. wanted to check on a few of them to give a flavor for the week. s&p 500 down 4% for the week. it looks like it is going to be the worst first week to a year since 2008 with all of these concerns about global growth weighing on markets, even with today's game. of is also on the list assets that have had a terrible start. is six, now at $33 six

cents. -- $33.66. having its best week since july, going to 2.15%. withet: let's check in ramy on the first word news. first in belgium, a prosecutor says investigators have searched an apartment in brussels that may have served as a bomb factory for the paris attacks. it is believed the same residences were used as a hideout for saul on the salon who is wanted for the attacks that killed 131 people. the you and special envoy in syria has arrived to speak with officials. this comes ahead of peace negotiations with the assigned government as well as its opponents in geneva. the you and wants them to come to the table on january 25 in an effort to find a resolution to the conflict.

in germany, chancellor angela merkel's party wants to make it easier to expel refugees. the christian democratic union says they should lower their hurdle for refugees who commit crimes. this comes amid outrage from sexual assaults on women on new year's eve in the city of col ogne. irs is imposing more security measures designed to cut down on fraud. among them, you will have to use stronger passwords and there will be more questions to verify your identity. largest dam they have to stop making electricity. zambia's energy minister says the country may have to do that because water levels are only 14% of normal. zambia depends on hydropower for almost all of its electricity. dayal news 24 hours a

powered by our more than 2400 than 150ts in more news euros around the world. alix: the u.s. judge report was good news for investors especially after the turbulent start to the week. scarlet: is it enough to keep the u.s. economy on track? weighed inerian earlier today on bloomberg markets. >> initially they responded positively to a strong drudge report. it is not just that we created 292,000 jobs. is three-month average 284,000, so it's good news for the economy and main street. the problem is it will encourage the fed to hike rates again in the first quarter, probably in march. what the markets are telling you is the obsession right now is not with fundamentals but with liquidity and in particular the fact that the fed is no longer in the business of repressing

volatility and helping asset prices go higher. betty: so if it were up to the markets, they would want the fed to do nothing this year? >> they want the fed to continue to be there to provide liquidity , and to suppress volatility. that is what the markets want. word that you used, divergence, reality is different. we are now in a divergent world. monetary policies are going in different directions which means higher volatility, and the higher the volatility goes to lower the risk taking comes, and the greater the pressure on risk assets. >> this leads me to your book, which you are releasing soon. in your book, you say central banks could find it harder to continue to borrow growth and

financial returns in the future by relying on these experimental measures. what outcomes could we see in the next couple of years? you in britain called the t junction. this notion that the row that we are on which is relying on central banks and central banks trying to promote growth through the financial assets and all, this road will and. where we go after that is the typical t junction. we could take a turn for the better. after all, there are conference of policies that can unleash growth and validate asset prices and push them higher. but if the political system continues to operate as it is today, we are going to take a turn to the worst. growth, lesswer financial stability, and asset prices coming not just to

fundamentals but overshooting them. it is a classic t junction, and i hate to say it, but there simply is not enough data and analytics to tell you it will be this or that. i have to ask you about china because it has completely dominated the first trading week of 2016, the worst first week of the year here in europe since 2000. many are saying china is , doucting policy on the who you agree? through ae going small patch. they are doing some things that are worse for the markets. one is flip-flopping on the reaction to the stock market. you saw that with the circuit breakers. it is a good thing i exited the business of -- they exited the business, but they got themselves to begin with. markets are seeing very uncharacteristically plopping.

the second is the currency. forget about the equity market. what is really a concern for investors around the world is the currency. what china has been doing is not only weakening its daily fix but it's been losing control of the and that isket, significant. so yes, there has been uncharacteristically steps. the good news is that china has the resources and the policy flexibility to get back on track. china we are watching like maybe somebody in their 20's starting their career, learning how to deal with the global markets, knowing they are on a public stage, even more so than 10 years ago. they are learning on the job. >> they are trying to reconcile a lot of different things. one is the structural transformation, going from a teenager to an adult. they are relying less on external markets because they

have gone too big for the external markets, and they have to rely on the domestic economy. there is a second thing they have to reconcile, domestic responsibilities and global responsibilities. right now, they are finding it hard to reconcile the two. china is going through a difficult period, called the middle income transition. that is what economists call it. they are not communicating well enough, but they are learning. alix: that was mohamed el-erian. scarlet: we have breaking news from the sec regarding steve cohen. he has agreed to a settlement with regulators over allegations that he failed to supervise a former trader at sac capital advisors. he will be barred from advising client assets until 2018. alix: this austin's from the idea that sec is alleging that he failed to supervise someone

who was accused of insider trading. scarlet: the way these were,: neither denied or admits to wrongdoing. alix: we will keep you updated on the headlines as they continue to roll out. ♪

alix: welcome back. scarlet: we are following some news that broke regarding steve cohen. he and the sec have reached a settlement in which he will be barred from managing client money until 2018 over allegations he felt to supervise a former trader. he runs his own family office now and that will be subject to routine examinations by the sec.

cohenwe should note, neither admits nor denies the findings. we will keep you updated on any headlines. the meantime, julie hyman has a check on some company movers. actually, let's take a look at some stocks taking a beating. actually, we have technical problems. no, you are good. let's take a look at barracuda. down 34%, this is an i.t. services company that apparently has been slow to catch up and offer its services via the cloud. or that reason, the company says $89d quarter building was million versus $91 million in the past year, missing estimates for earnings per share.

analysts coming out with negative commentary. drop wasought this big, take a look at the container store. we are seeing a huge plunge of 43%, the biggest one-day drop ever, after the company came out with limiting earnings, $.19 to $.20 in the first quarter. $.29 is what analysts were anticipating. same-store sales could be down as much as 5%. the ceo said the weak profit was because of increased expenses and cost-cutting will be more of a priority. some anticipation a few years ago or this ipo but the stock has underperformed. look at weight watchers. they got a big bump up when oprah bought into the shares and when she started a new ad campaign, but since then it has been slumping. there is no reason for them to fall today but they have been down heavily.

there is some concern that oprah will not be enough to help the company. scarlet: is in the motto for the company not now -- if not now, then when? chinese volatility hogging the markets this week. eds are now seeing huge volume. alix: eric balchunas is with us now. it as thatok at invest in china, what are they telling us now? >> the one that people are using for mainland china, people have always used fxi for hong kong shares, but now people are using ahar. bill gross talked about this on wednesday. in looking at this, he said he thought the market would open up down 7%. in terms of etf analysis, ashr open down 7% after the circuit

breaker day. that was in response to what happened. then it closed down 6%. that tells you china may open up a little bit because it was less down at the beginning of the day. the only way that you use eds for a poor indicator is it something happened in the u.s. then ashr would go down as they anticipate the u.s. to go lower. there are also things with the government that you cannot predict but ashr is being used more. there was a good article about this going into this today. trading volumes have tripled, so that makes it a good indicator. scarlet: what about leverage to eds in china? are triple leverage shares. the ones that we're seeing more usage of is the inverse mainland china a shares. this is the opposite of ashr.

fund, $160ew million. what is fascinating is it only trades about $20 million a day. that means that people are buying and holding this. normally people go in and out of leverage like crazy. the turnover tells me that people have a bad opinion of china. i love the tea leaves that you can read with eds that way. scarlet: still ahead, a rocky start to 2016 for equities. turmoil in global markets is affecting individual investor sentiment here in the u.s.. ♪

scarlet: welcome back. alix: happy friday, by the way. the crazy week.

inual fund and etf investors the u.s. are exposed to 144 billion in chinese equities as of the end of 2015. scarlet: with this week's chaos leading to circuit breakers, what does this mean for the individual investor? carol massar is a bloomberg radio with more. carol: we want to talk more about what is happening in china. as you said, a crazy week. peggy collins has been looking at this, she is our personal finance reporter. opening up myf 401(k), but let's talk about individual exposure to what is going on in china. peggy: i was asking brian reed, .he chief economist at ici essentially, he was saying, take a breath. when you look at the data, in

terms of u.s. investors in mutual funds and etf's, their exposure to chinese equities is really small. there is about $144 billion in u.s. mutual funds and etf's in chinese equities and that is a small slice of the overall mutual fund market. carol: these are homegrown companies we are talking about. is $15right, the size trillion. that is a small slice. the bigger issue that people are talking about is the knock on effect essentially of fear -driven issues in china. saw this in terms of the market volatility this week. carol: what are individual money managers doing? what about those managing home offices and so forth, are they making any adjustments because of what they saw this week? peggy: i reached out to some private independent thinkers,

thanks, and i asked them if this film august -- different from what we had in august. that was one of the first things i thought of, does this feel different to them because back in august, many of them said to me, this is what we have been waiting for, client with cash on the sidelines, we jump in to buy some big names that had gotten expensive in terms of u.s. stocks, like apple or google, and side as a buying opportunity. across the board the reaction yesterday were, this feels different. they have not figured out whether this is again some volatility at the beginning of the year driven mostly by china, or of this is indicating something prolonged. every time i get up in the morning i'm thinking, are we missing something, is there something different than what happened in august, are we missing a puzzle of the picture? i was talking to karen lynch, a financial advisor and

one of the biggest independent financial ira's in san francisco. she said it feels different, but we have not bigger doubt if there is something underlying. they did not sell this week but they also did not buy. carol: are they worried about something more significant in china? we talk about the lack of transparency. are they worry that what is happening with china will have a much more broader reaching effect, or is or something with the u.s. situation? peggy: i spoke to bill kennedy at another independent bank in greenwich, connecticut. he says they are more worried about the slowing of the u.s. economy, so there watching the dollar index closely in terms of how the strength of the dollar is playing into u.s. growth. also, they feel the subplot of saudi arabia and what is going on in the middle east right now may be a bigger deal to markets overall than china because the chinese stock market is actually not that big yet. i thought that was an

interesting point. there are a lot of things at play. we have the fed taking its foot off the accelerator in terms of interest rates, the potential slowdown in the u.s., and then geopolitical issues not only in china but north korea, saudi arabia, isis heating up since the pairs attacks, and then in the u.s.. this: anybody saying that reminds them of 2008, 2009? we heard from george soros that we could see a crisis that is similar to what we saw in 2008 because of what we are seeing in china. anybody harkening back to that? peggy: i have not heard anything to that extreme. yesterdaya note out that changed our tactical allocation to global equities, moving it from overweight to neutral. it was not that much overweight, but it was intentional and specific in terms of the recommendations. because it was a small move, with a drop in equity markets,

some people should buy back in, if you have certain asset allocations. i have not seen big swings from people but it's certainly something that was more dramatic than people were expecting. carol: people are not running for the doors in cash yet. peggy: no, there is still opportunity. carol: peggy collins, thank you. back to you. scarlet: carol massar speaking to peggy collins. that leads us to our tees for the next segment. gold outshining commodities this week. is it looking tarnished already? we will take a closer look. back? gold ♪

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alix: welcome back to "bloomberg markets."

i'm alix steel. scarlet: good friday afternoon. let's check in with ramy inocencio. ramy: we go to philadelphia where a police officer who was ambushed overnight is expected to survive. he was shot 13 times at close range while sitting in a marked patrol car. the suspect is now in custody. the city's police commissioner says the suspect confessed to the shooting and said he did it in the name of islam. that officer is in stable condition. in the meantime, president obama is expected to veto legislation to repeal his own signature health care law. it's one of many repeal measures pushed by republican lawmakers to since 2010, it's also the first to clear both houses of congress and make it to the president's desk. the legislation would also cut funding for planned parenthood. authorities say to people with ties to the islamic state have been arrested on terrorism charges. one of the suspects as a refugee who was lying about

his travels there. no indication of whether you plan to terror attacks. arabia. in saudi it sparked regional protests, thousands of worshipers took part in friday prayers into ron joined the rally. the media reported similar protests taking place in other iranian cities and towns. newly 100 homes in western australia are in ashes, consumed by a raging summertime wildfire. the blaze scorched nearly 200 square miles, it is now threatening other towns. officials think it was sparked by a lightning storm. this season's fires have destroyed the most territory there in three decades. global news 24 hours a day, powered by 2400 journalists and more than 150 years bureaus -- news bureaus around the world. i'm ramy inocencio. scarlet: mexico casos -- chapo guzman.

after a five-day rally, gold is falling. more than $4 trillion were erased from global equities. scarlet: our next guest expect gold prices to else back. joining us is jim steele from hsbc securities. good to see you as always. is this the bounceback? was this week indicative of what the year might bring? jim: we see a number of uncertainties in the market. higher volatility as discussed by the earlier guests tends to be good for gold. muslims this uncertainty persists, we get an immediate bid into the gold market. further in many fact, we also good physical demand and the emerging markets, that's ordinary people buying gold at these prices. scarlet: if you look at a one-year chart of gold, we had

some volatility in late last summer in august that led to a bit of a rally for gold. it turned out to be a brief one. what is the different this time that allows gold to sustain the uptrend? jim: volatility is maybe more severe. the chinese stock market selloff is harder. there may be more uncertainty going forward as well. summer, unlike now, we were in a pre-fed rate rising atmosphere. now, rates already increased. although we don't know how gradual or strong the further rises are going to be, they are released in the market, and that's clear the deck. alix: what part of this had to do with adjustment of positioning? at the end of last week, the short positions in gold are at a record high. how much of this is like i'm going to rejigger here, unnecessarily buying for the longer-term? jim: that's pretty positive.

the shortest positive? jim: no, it hasn't been that short. but youill net long, are right, the record gross for the short positions are very high. we still have positions the just edge out. and so net, it's still slightly long. the market hasn't been that short since 2001. but you are right, is a very low levels and could flip. it's more like that we are to get further shortcomings. scarlet: what about the fundamental side come in terms of demand? we are heading towards chinese new year. it's the second week of february. you talk about the demand for emerging markets in jewelry is picking up. what's different this time around? physical gold the demand is in the form of jewelry. coins as well make up a substantial category. so the combination. and two thirds of physical gold

amanda split between china and india. if you keep an eye on those two countries, you'll have a good view. and although 7% of growth in china, or even maybe a bit lower isn't as strong as it has been traditionally, it's still good enough to keep incomes rising at that middle-class level that tends to look for gold. we haven't really seen any decline in the retail consumption of gold, significantly, due to the slowdown. versusf you look at oil gold, willis of the cheapest relative to gold since 1980. i was really shocked to see that kind of ratio. either that means is oil is that undervalued, or gold at these levels in comparison is overvalued. which came to fall under? our -- i am the gold analyst, our oil analyst is looking for high oil prices. -- i canve to be understand the gold silver

ratio, i can understand a gold and platinum gold spread. you have to be careful when comparing gold to other things though, because so many other factors come in. is situation with oil ostensibly negative for gold, because of the lower inflation output. growthlications of we and low jewelry demand. growth and low jewelry demand. they can offset the negative impact on gold. scarlet: a target for this year? jim: an average of 1205. that's higher than most analysts. alix: thank you. you are always so positive. analyst,cious metals good to see you. as a strange thing happening on oil and gas expiration and production companies. usually companies that sell more shares get punished for it. but the opposite is happening. scarlet: take a look at pioneer natural resources company stock is fallen 7%, and mc was held to $1.6 million in new shares.

that is still better than the spd are oil and gas expiration and production etf which dropped about 9%. joining us from san francisco is intending -- ian denning. alix: when i hear that -- liam denning. alix: when i hear that, i think while. and you are raising your budget. few: it's one of the companies that has very good assets and actually is a very good balance sheet. it's one of those instances where you know how the banks will often lend you and him relevant it isn't raining. in this case, pioneer can do the sort of deal. in some ways, doesn't need the money as badly as others. alix: it doesn't need the money as much as the other sector does. fair point. if you take a look at the rig data point they came out today, oil rigs have dropped 20 last week.

what does that say about the health of the e&p sector when that's an extreme drop? don't get me wrong, the e&p sector is in a lot of trouble. yet a look at what's happening in the high-yield debt market for the sector. i'm just saying that pioneer is relatively better provisioned. i think is the rest of the year progresses, i would say particularly around spring when a lot of the e&p companies will be going back to banks to look at their borrowing basis, we're going to see a real washout in the sector. unless you get a real meaningful bounce in oil prices, which doesn't look likely given the glut and the likely return of iranian barrels and that sort of thing, a lot of these companies are going to come under renewed pressure as we head into the spring. happens in a bank redetermination, which as you point out, will be in the spring? i've been waiting for companies to go bankrupt because they come under stress, what's going to be different this time around? liam: i think it's just a case

of another layer of pressure. to october, which would've been the last time the indie companies were talking to their banks, at that time, a lot of people thought there was going to be a bit of a squeeze. it seems like the sector was given another length of rope, if you like, by the banks. in the end, the banks would rather give these companies time to turn things around, rather than squeeze them to the point where they go bankrupt. no one really wants to deal with that situation. spring, i think by then, we are going to see bankers saying ok, there's been no recovery in oil prices. the outlook at least a second half of this year is still pretty grim. i they are coming under pressure from regulators -- i think they are coming under pressure from regulators to draw exposure to these companies. scarlet: great stuff, thank you

so much. liam denning. themore commentary, search on the web. i encourage everyone to read his post every day. alix: especially the one on the ipo. stephen acorn can manage money once again, but not until 2018. we bring you details on the settlement with the fcc. ♪

alix: julie hyman is taking a look at china.

julie: let's start with chinese equities. rocky session for the plunge. and recovery. a lot of bouncing around with on the index all comes back, where these a lot of it comes back to what's been going on with the chinese currency. and the chinese authorities allowing it to depreciate. here's the dollar versus the chinese yuan. if you look over the longer term, and the past year, if you look at the chinese currency, you've seen an appreciation of the u.s. dollar versus it. bet is the dollar going to the most important to look at? a basket ofated currencies, it wanted to downplay the dollar versus the u.n. -- the yuan. that's why have a my bloomberg terminal. if you take a look, this shows me depreciation of the yuan versus the dollar.

and here it is versus the basket of currencies. we see more of a depreciation in this case. there is some thinking here on the part of analysts -- i got that backwards. dollars the lower chart. the dollar is the aligned in the basket is the white line. because the dollar versus the u.n. has depreciated -- the yuan versus the basket. the thinking might be that the pboc is looking more at the basket unless at the dollar trade. so there's more depreciation to comment. i'm getting all tripped up by my own explanation. like there's more competitive currencies in asia that the yuan is very high. and needed to value more to make their experts even more competitive. julie: thank you for letting my chart. scarlet: as we been reporting, steve cohen may be able to manage money again, but not till after 2018, as part of a settlement with regulators over

allegations that he didn't properly supervise a former trader. president hollande: let's get more insight -- alix: let's get more with keri geiger. >> essentially good news with steve cohen. at one point during this investigation, the fcc was thinking a lifetime ban on him being able to manage outside money. of course now, i think in 2018, there's a lot of people who are going to be rushing back into steve cohen's management world. he's had a phenomenal track record, edit lists basically and allows them to move forward on his business. scarlet: right now it doesn't trade -- doesn't change anything. >> i believe that's correct. all of new firm, which is a veryy office, has done well in terms of returns for his investors. a's likely going to carry

little momentum. honestly, two years is not that long. especially considering it could have been a lifetime ban. it's also important to remember this is a failure to supervise case, where he was -- the ban comes from failing to supervise one of his former employees, matthew mark toma, who was, in fact, indicted and charged and convicted of insider trading. scarlet: when you take a look deny cohen didn't admit or the sec's findings, there were no financial penalties imposed. how does he go about doing that? how can you say i will accept some oversight, but i'm not wrong and i didn't do anything bad and you can't do any financial penalties? admit or deny is an interesting thing the fcc has. basically they've said we're going to really press on people to admit to guilt in these types of cases.

however, we feel like this, it's a very easy way to kind of resolve an issue, looks at a simple issue. if you don't have a small fine, it is look like the activity is particularly egregious. basically, it's a really good negotiation on the part of steve cohen's attorneys and the sec to come to resolution like this. scarlet: and allows him to keep his wikipedia clean of any guilty met -- guilty plea. -- you're basically getting a little bit of backlash against the sec, who has been trying to be really heavy-handed and show examples of how to prosecute -- that really prosecute, but how to go after individuals as much as the doj has been doing that. people are going to look like this, he's a billionaire and off pretty easy. as you look to the fact of the case, maybe the settlement he got was merited. scarlet: you also mention how there is demand for steve cohen

to invest further people, to invest other people's money. is there a lot of potential demand, given he hasn't been doing that much so far? >> considering the track record he's had over 2015, which you guys know very well was not that great, he did fairly well. this track record with many of his previous clients was very good. there are a lot of people who have long-term relationships with that fund in the process that he goes about. ifwouldn't be surprising they were people knocking at his sore right away, january 1, 2018. scarlet: is there nothing else? >> this is the big thing that was overhanging, this sec issue. sac capital settled with the governments a couple of years ago and paid well over $1 billion in fines. it's probablylike the last major thing. i don't know if their airplanes of lawsuits or anything like

that, don't think there are in this particular case. but in terms of the government, a kind of clears the path towards leaving most of those issues behind him. scarlet: they are trying to go after steve cohen. >> never say never. alix: thank you, keri geiger, we appreciate it on that breaking news. scarlet: coming up on "bloomberg markets," we talk about china and the move to the valley the yuan a couple of times this year and what it's meant for global markets. alix: and what happened sunday night when markets reopened. that's next. ♪

scarlet: emerging markets stock stabilizing today is chinese markets attempt to bounce back. alix: our next guest has been bullish on chinese equities in the first half of last year, and now he says the market is about six to nine months away from being a place to put money to work. joining us now -- actually we

are breaking news on yahoo!. to reconsider web operations, shifting in light of a proxy fight. noise.e making a lot of yahoo! has not concluded that has to sell, bankers have not been hires, but once again, gordon to people familiar with the matter, yahoo! is set to which isr its sale compensated by tax purposes. alix: we'll keep you updated as the headlights as they cross. in the meantime, the main market story is really about china. morocco for lou -- murat. you are bullish in china, what would you have to see the bullish again? murat: i think with going on in

china is a version of what's happened to the united states in period. gsc they have to can get through that. if you remember, the united states markets, september, october, we didn't flatten out and start to come back until june of 2009. enough to can think of it in the same way. alix: this is a continuation of the devaluation in august. people thought that everything was resolved, and that it happened again. do we know why now? why china decided to leave things alone from august until december and then decided to devalue once again? reason i ask is if we know why now, we can help figure out what comes next. murat: you are right. that was a big trigger for me. that kind of cemented my negative bias.

that morning, i told all my people that this is significant. you have to pay attention to it. the reason is because it hadn't happened since 1994. think about subbing that hasn't happened since 1994. that's got a be significant, right? for china to devalue in such a manner. the reason they did it, of course, looking back it was kind of obvious. you could see what was happening to exports performance. expert performance had been in the decline since somewhere around march of 2014. if you put up a chart and look at the expert performance on seemberg of china, you will the topping and then the decline started. july or august of 2015, it was almost like there was no choice but to devalue, to jump start exports. that has to continue. there's no other way.

they are not getting enough bank for their gdp growth elsewhere. alix: how must devaluation do you expect from the u.n. this year and what is your time frame for? a lot of people have prognosticate on this. it's hard to put numbers on stuff like this. over the years, i've seen many countries go through the same sort of momentum towards a devaluation. the chinese have to do it in small increments. they can afford to do it in large increments because it's the second largest economy in the world with the largest trade in the world. it will continue, but will it be 8%, 6%, 12%? it's hard to say these things. you just havethat to believe, it has to go down. there's no other way. brought -- murat

koprulu, thank you. julie: we are seeing a big leg up in the stock after our reporting, a scoop by bloomberg news, a reporting team shows that yahoo!'s management team is warming up to the idea of a sale of its main business, rather than a spinoff or it the shares, by the way, are down about 39% over the past year. scarlet: thank you, julie hyman. we continue to monitor those yahoo! headlines. coming up later on "bloomberg west," we have a former homeland security secretary. he's talking about how terrorists use social media and encryption. much more "bloomberg markets." next. ♪

>> it's 3:00 a.m. in hong kong, welcome to "bloomberg markets." ♪

david: from bloomberg's world headquarters in new york, good afternoon. gura.vid gora -- will concerns of china outweighs signs of strength in the u.s. economy? bill gross says it may be a tough time for bonds, it relies on job growth for a way to raise rates. bonds are looking sad ahead. steve cohen will be able to manage money until 2018. why that's good news for the billionaire investor. let's head to the markets desk with bloomberg's julie hyman with the latest. julie: not blockbuster stock activity by any means. without was bouncing around and lack of impetus. i do want check on yahoo! very quickly. we just got head