>> from bloomberg world headquarters in new york were good morning. here is what we are watching at this hour. we are about a half hour into the trading session. stocks are fluctuating after china takes steps to cushion the economic slowdown. time to look for bargains, according to mark mobius. up, including his views on chinese stocks and the chinese currency. another investor to listen to, billionaire warren buffett, reiterating his stance that america todayin are the luckiest in history. why he says -- ignore the negativity from political candidates. america is actually really great.

julie hyman has the latest on pending home sales. down, actually. of january,he month yes, down 2.5% month over month. year-over-year we have a decline of 9/10 of 1%. of ans a little bit offset there, but we are seeing a decline of 2.5% as the biggest drop in two years. this does represent a setback in residential real estate going into the spring selling season, which is a very important one for home builders. this is something we will continue to watch, taking a lateron homebuilders today as well. we have a mixed picture over in china. we saw chinese stocks fall here in the u.s., with a mixed picture, the nasdaq rarely holding on to gains as the s&p and dow are lower. for a bit of a deeper dive into the mixed picture, take a look

at the map of the various sectors on the move. materials, utilities, discretionary. the biggest drag today is financials and health-care shares. on that front, let's point out some movers. valeant is down. not on the s&p 500, but they are taking a hit. back as theson's ceo after his two-month medical apps that -- absence. the company withdrawing its guidance while the board is reviewing the company's accounting. those shares are down by 9%. down even more, this is a company that is in the s&p 500, endo health solutions, coming up with earnings that eat estimates . the company is also saying that it received formal bids for a responsibleora, for making vaginal mesh, increasing their mesh product liability by 834 million

dollars. something to keep an eye on for that company as well. month to date we are now higher on the s&p 500, breaking the losing streak we have seen. finally, quick check on oil prices, which we are actually watching the higher despite a pullback in energy stocks, interestingly enough. inflation data having an effect to in europe, right? despite the, central bank's best efforts. the euro, we are seeing other klein of 4/10 of 1%. to gold onceg again. a very frequent place for investors to go. let's take a look at gold prices, if we could. we have seen investing in gold increase, as we know, significantly. take a look again at the bloomberg.

you can see that the bullion backed assets here, we have seen them surge the highest since october of 2014 as we have seen global stocks slump. people looking to gold as a store of value, perhaps an area of safety, etc.. some people saying this julie: is the time to own gold. a lot of people taking that advice. betty: vonnie quinn has more from our news desk. trump --inn donald senators vonnie: marco rubio and ted cruz are virtually tied, with 15 and 16%, respectively. the former secretary of state now leads bernie sanders 55% to 38%. 70% of voters say that trump will get their party's nomination. counting on white

working-class voters to keep them in the race. he is far behind clinton in nine of the 11 states that host primaries or caucuses tomorrow, so he is focusing on states farther down the road that have higher proportions of white voters, like minnesota, michigan, massachusetts, and ohio. more on the race for the white house, shortly. moderates have won a majority in the iranian parliament. he needs the support of reformists to push to changes to the economy. hard-liners opposed to deal with fewer than one fourth on the scene. north korea says that a u.s. college student has confessed to what officials call a hostile act. conference at a news in pyongyang, accused of taking down a propaganda sign. the u.s. is pressing for more economic sanctions against north korea. dozens of flights have been delayed or diverted at the london gatwick airport after its one runway was closed because of a suspected oil spill.

the airport says it was suspended after a spillage after 10 a.m. london time today. it reopened about 19 minutes later. global news, 24 hours per day, powered by our news bureaus around the world. i'm vonnie quinn. betty: let's get back to the markets. the s&p could end the month with gains after stumbling earlier in the month. imagine that, we might actually end in the green. as one columnist pointed out today, the only place you will find a sign of a recession is actually in the stock markets. everything else is looking -- i wouldn't say great, but pretty ok. us that thiss negativity bubble from 2016 has finally burst. joining us now is the equity derivatives strategist for ubs, julian. when you were on did us a couple of weeks ago you said you thought this was the bottoming process, right?

julian: we thought it had been a rolling capitulation. first the public sentiment turned negative. and then institutional investors turned recently negative. you got to the point where you had a bubble where you had the s&p yielding 70 basis points higher than 10 year treasuries. betty: it was irrational. alian: there has always been good market in the 12 months preceding that kind of relationship. julie: what is it that -- betty: then what is it that stock investors are so worried about? what are they getting wrong? the data is not great, right? that it is also not a recession either. manufacturing is a little bit trickier than the rest of the economy. we have to remember, it is this residual concern that international developments could and fromto recession

that perspective we are very encouraged with what china did earlier today. you are saying: they are too worried about what's going on overseas? absolutely. what we have found is that coming out of the fourth quarter earnings season, though those expectations were subdued, there is reason for optimism on the earnings front. it takek, so what will to convince -- you mentioned china's rate cut yesterday. that helped a little bit, but not a whole lot. what will it take for these investors to see a recession coming? who is going to get them to come back in? an improving economy. essentially what we have seen in february is the start of better economic numbers. the data is still choppy. we had numbers this morning that were mixed. but what that actually does is wep the fed sidelined while wait for the economy to pick up.

to us that is a very positive backdrop. betty: what do you see going to the end of the year? julian: our year-end price target is 21 .75. we were challenge for our comfort level. we are quite some trouble with that number. negativeat about this interest rate? that will be a killer for the banks. it is definitely going to be a challenge, but at the end of the day first off we don't see that as a likelihood in the u.s.. no question about that. when you think about europe, actually, the state of the banks at this point, the state of the contingent convertibles market has been an issue. you have to go into a reasonably deep recession there to cause the kind of financial stress that bank valuations have traded down to. so, we are reasonably optimistic, going forward. betty: warren buffett released his annual letter. did you read it? did you like it?

is the look, america greatest place to be despite what the politicians would have us believe. honestly, that's part of the negativity bubble. as you go through march and the field narrows down and the candidates focus on attacking each other more than attacking the state of the u.s. economy, we think that that will be encouraging. what he said.s is i want to read a part of his letter, right? "some commentators below our growth in real gdp, but let's do some simple math using the much lamented simple figure. that rate, we will see, delivers astounding gains." astounding gains, do you think it really will? investors itatient has been arguably the secret of success in the past. again, part of the issue is a comparison to a subdued interest rate environment, which we don't

see accelerating anytime soon. so, that is a good recipe for shares. betty: julian, thank you so much. as you know, there has been a stalemate between argentina and its bondholders. seems like the country and its main holdouts have agreed in principle on a deal over four point -- on over $4.65 billion in debt. again, it looks like argentina and the main bondholders hold out and the whole stalemate has agreed in principle on a deal of $4.65 billion in bonds. so, we are going to give our eye on that developing story. much more ahead. ratemobius on the chinese cut. stay with us. ♪

betty: good morning. you are watching "bloomberg markets." i'm betty liu. aneserve ratio for banks in effort to cushion economic slowdown amid a weakening currency and plunging stock market. is an expert on the chinese economy and he spoke with francine lacqua early this morning about chinese stocks, their valuation, and also more stimulus. >> you got a situation where in the emerging markets and particularly in southeast asia there has been a slowdown, so they want to stimulate their economy. these markets are in that part of the world. i believe that they will continue their stimulus program. when theybelieve them

tell you that they will not devalue the yuan? >> they are looking at a basket of currencies rather than the u.s. dollar. i think that they were referring u.s. dollar, the not against the basket of their major trading partners. so, what you see is a pretty steady movement against the u.s. dollar downwards. but against a basket of currencies from major trading partners, it won't be very big. francine: do you believe that china has improved its communication? mark: i believe that china is relatively open now and have done a relatively good job communicating. being a command economy, sometimes it's difficult for us to understand the command from the top. those commands are clearly laid out in the 10 point program. if you read those. but the details are what is really important.

that is not revealed very transparently. given the volatility that we've seen, are you still a buyer of chinese stocks? do you think you understand the exact endgame from the chinese authorities? mark: we are a selective buyer. this is the time when you have to be very selective. we are a buyer of select stocks, yes. emerging markets are going through such a tough time. they are cheap, people say, but at the same time there is the growth coming from anywhere. mark: it depends on where you are looking. if you look at the real bombed out areas, like i just came back from brazil, people are bombed out and sad, that's a great time to be buying. brazil is not going away. they are going through a lot of reforms. i think that that's something to look at. because it'sin,

cheap, but we don't know if the president will be impeached. unless you believe that the political doldrums will be put to one side, it may not be a good time to invest in brazil. no question my mind that the political environment will change dramatically. it will take maybe another year, but you know, the markets move ahead of these kinds of developments. it something to look at. if you look at the situation in argentina, for example -- i was in point us and race a few weeks ago. the mood has changed dramatically as a result of what the government is doing and the market is doing very well. what exactly do you want to buy? you are ever the optimist. there must be a point rethink that this is going to go badly. time in thee this markets. things look so bad, it usually is the time to be looking at these bargains. the things that we are looking at are those strong, consumer-oriented companies with

a good market share, growing their market share as a result of the services in their industry. they are buying their competitors. their competitors are going out of business. those are the kinds of companies we're looking at. betty: that was again, the temple emerging markets group executive, mark mobius, speaking with francine lacqua. just one day is away. candidates are taking it into high gear. tomorrow's results could lead to the inevitable nomination for donald trump and for hillary clinton. candidates like ted cruz and bernie sanders, they have the means to fight to the bitter end. what does that mean? the money. more on that, coming up. ♪

you are watching "bloomberg markets." i'm betty liu. matt miller is joining me now.

matt: well, we made such a good team on friday, i thought we should do this again. time for the bloomberg flash. newsk at the biggest stories in business news right now. more problems for lumbar liquidators. battling allegations that they sold flooring with unhealthy levels of formaldehyde. fourth-quarter sales fell 14%. last march 60 minutes accused them of selling the tainted flooring. this month federal health officials said the risk of cancer from the flooring was three times higher than had first been estimated. buy thep has agreed to american express portfolio of credit card loans made to costco shoppers. expecting a gain of $1 billion from the sale prompted by the costco moved to switch its partnership to city and visa from amex. valiant pharmaceuticals withdrawing its financial forecast, delaying the release

of fourth-quarter results. they have been questioned about ,usiness practices, strategies and accounting. michael pearson is returning to valiant after a two-month leave for medical reasons. that is your latest bloomberg business flash. now, abigail doolittle has the latest from the nasdaq, where she is taking a look at biotech stocks in the sector. nasdaq biotechhe index is down by nearly 1%. the worst drag is on the nasdaq overall after the company said that it would be shutting its restore women's health unit to reduce potential liability after failing to find a buyer and producing full-year revenue guidance to a bit love the strings. they cracked below the support of last year's lows, suggesting they could drop even more. the company said that they

received a subpoena in november around its patient assistant program. betty? thank you so much, abigail doolittle at the nasdaq. abigail: all right -- matt: all right, super tuesday is one day away and it looks like donald trump and hillary clinton are showing their don -- dominance. trump got another high-profile endorsement from jeff sessions. clinton slipped to victory over bernie sanders. here to break down the latest is megan murphy. ok, it looks like trump is kind of racking up the republican establishment endorsement. as aig is that going to be help going into super tuesday? >> this is a party that if you could describe it in one word would be crisis. this is a very late moved by the establishment, some calling it too little too late to consolidate support behind marco

rubio. at every angle of what they are trying to do they are trying to stop the juggernaut of trump. tomorrow we expect him that she had big leads up for tomorrow but whether or not the establishment favorite can really make headway into those states remains to be seen. there is this race that has dissented a bit into gutter politics. matchrubio has tried to trump with his rhetoric. whether that will be effective or not, i'm not so sure. what about ted cruz? recently he said it could be possible for donald trump to be president of the united states if he does well tomorrow night. >> there is no question that if he runs the table as some people expect, we are looking at that is a real probability. ted cruz has everything on the line in texas. he's got to win there. he's out if he doesn't. he has been one of the republicans who has said that he will support the eventual

nominee. others, like marco rubio, have yet to say they will do that. we will see what happens tomorrow if they are put in a place where they basically have no choice left. is ted cruz willingly going to take himself out? >> he's got a lot of money, but texas is his home state. if trump wins there -- and he has had a lot of enthusiasm, huge rallies, that will be game over for ted cruz. it will come down to whether he makes a chris christie type declaration of support or if he pulls out to see how the race develops. running mates?ut anyone talking about trump running mates? there was a stunning decision on friday with chris christie and his name in the frame. no one is talking about it yet. many republicans are in sheer disbelief and bafflement that this is the situation they are in. it will be coming fast and furious tomorrow. what are you hearing about

electability versus donald trump and hillary clinton? does he have a chance, given her scandals? >> look, no one has been able to properly assess the donald trump phenomenon. call it a movement, call it when everyone, but he's built a much broader coalition than anyone expected. as he likes to say. .his is not a shoo-in matchup more because of the anybody knows how to calibrate him. so, the polling is just fictional. megan, thank you so much for joining us. megan murphy, our bureau chief in washington. quick break here, we will be back with more markets.

live frommatt: bloomberg's world headquarters in midtown, manhattan, i matt miller. -- i'm matt miller.

vonnie quinn has more from the news desk. vonnie: thank you so much. russia says the cease-fire in syria is still in effect. russian warplanes resumed attacks in northern syria after the second day of the cease-fire . meanwhile syria says that rebel forces fired artillery at government forces. u.s. forces led a coalition and resumed attacks on islamic state's, but that is not covered by the truce. angela merkel says that greece needs europe's help on refugees to prevent the country from plunging into chaos. border closings in eastern europe have refugees stuck on greek soil. greece is warning that there could be a humanitarian disaster. hastant slings and al qaeda stepped up attacks in somalia. three bombings killing over 40 people. calling for matt -- multinational force fighting the militants. president obama will award the nation's highest military honor to a navy seal.

he helped to rescue an american hostage in december 2012, the 11th living servicemember awarded the amount -- medal of honor for actions in afghanistan. time was the charm for leonardo dicaprio, who won the oscar for best actor in "the ."venant "spotlight" won best picture. news powered by the 2400 journalists around the world. i'm vonnie quinn. leo did it. matt: he finally did it, but really not for his best movie. my opinion. i mean, i liked "catch me if you can." i liked "kingdom new york." i "titanic." "the aviator" was oscar worthy role. a global asset manager who has been around since 1924 just made

a big splash at the nasdaq. celebrating the launch of the first ever nontransparent actively managed etf's. their new creation is called an exchange traded managed fund that goes under the name next shares. for more on what this means to the industry into investors we are joined by their ceo, tom faust. tom, thanks for joining us. can you just walk us through what this means and why it's called nontransparent? tom: these shares are a new way to invest in these strategies. you can think that because they are exchange traded, they offer taxntial costs and advantages that can enhance performance. because they are actively managed they have the potential to be wrench marked by applying proprietary research. we think of this as potentially combining the best features of both exchange traded products and active management.

the goal here is to enhance the experience for long-term investors. the whole idea of active investing has been challenged as of late. there, if youout were in an actively managed fund, you underperformed the index. more than 80% of large cap mutual funds underperformed the s&p. is it a little bit too late to prove this? we don't think so. today there are $10 trillion in the united states actively managed. people that think that they are there at pfizer have the ability to pick winning strategies that can outperform not only other active strategies, but also passive alternatives. if you look at the new fund, next shares, investing in the same underlying portfolio as an existing visual funds that has itself demonstrated a strong

performance against competitors and against the benchmark, the s&p 500. betty: actively managed funds have been around for about five years or so and only have about $23 billion in their assets right now in etf's. i mean, most of those funds are in passive -- basically indexed etf's. vanguard is the barn on leader in that. do you compete and get more of that share of the money? the product that you are talking about that has $23 billion in assets is an actively managed etf that discloses full names in full every day. what that means is that the investments energy of that manager is not proprietary. in other words, other people can see the holdings, can see the day-to-day changes in the portfolio. what next shares does is allow active managers to access the potential performance and tax advantages of an exchange rate

structure without being required to give up their proprietary portfolio information that potentially opens up those products to a much broader range of strategies and managers than we have seen to date in fully transparent active etf. where the phrase comes in, activating strategies that only you know about. it cannot be copied by the market. does this mean for investors as far as speed? they can get in and out of these just like they would be able to with any stock? tom: what's different is that the price at which you trade is based on a trading cost relative to that asset value. for example, you might either fund at today's value, plus one cent. out to be value turns $20, you will pay $20 on the

penny. it looks like the fund itself, trading wise on friday it was about 100 shares. i don't believe that it's trading at all right now. are you disappointed with the low volume you are seeing so far? no, we're not. friday this was only available for trading among market anchors and other in the two small investors. starting today folio investing, an online brokerage service, is making it available to customers . this morning we are just now seeing the start of availability. betty is talking about the eternal duel between index trackers and actively managed funds. do you think that there was a time when we might see one that would naturally do better than the other? are we now in a market were correlations are coming off an actively managed stock pickers will move out? there are times when

activist better and there are times when passive is better. it's not about trying to time as active versus passive, but from a long-term perspective to make active more competitive and make it available in a lower costs, better performing structure. our research has shown that if you can lower the cost of active investing, you can significantly tip the balance of the performance of active strategies versus passive alternatives. matt: tom, really appreciate your time. the fund launcher today, if you can get into it. coming up on "bloomberg markets," berkshire hathaway reported a record profit over the weekend. perhaps not surprisingly, warren buffett is bullish on america. ♪

hi ♪

all right, this is "bloomberg markets." i matt miller, here with betty liu again today. time for a look at some of the theest is the stories in news right now. carl icahn already owns 82% of federal-mogul. now he's offering seven dollars of there for the rest company. a 41% premium to the stock on friday. company says they will review the offer. media,ster, tribune exploring strategic options. they own 42 tv stations and the wgn america cable network area shares are down 50% in the last year. they spun off from the tribune publishing newspaper business in 2014. one of the chief lieutenants of warren buffett got a big pay raise this year. the ceo of berkshire hathaway energy received a pay package

valued at almost $41 million. that's a 48% increase. the big reason is a $28 million incentive plan award. that is your business flash. let's head over to mark, who has the latest from london. mark: check it out, this is the function that shows you how the main boards are faring in europe. the reserve ratio cut today by china, giving a lift to shares that were down about 1%. one third lower on the euro stoxx 50. a mixed session today, investors still disappointed that the g 20 finance ministers did not do more. thans more rhetoric action. this is the month to date performance. these are the main industries. as you can see, these three industries roads by february after three months of decline. interesting since basic lowurces fell to a 2.5 year

on the 20th of january. the industry is up by over 20%. really quickly, you know how well gold has done. a lovely chart taken from one of our bloomberg stories, gold the u.s. treasury bond index and the global high-yield corporate honda index. betty: what is cap -- matt: what is coming up on the european close? 0 we will be chatting -- mark: we will be chatting with people of the european auto show. the chief executive officer of new modern mining joins us. more on the oscars and amazon here in the u k, stepping up its incursion in the the u.k. grocery market by signing a deal to sell hundreds of products supplied by morris. busy show, sivan a minute. mark is goingway,

to have a leonardo dicaprio chart for us. it's going to hurt matt miller to look at it, because he knows he's been defeated once already today. that's right, but i believe i will be judging the battle of the charts today. over to the markets desk, julie hyman has a check on what's going on in stocks. i'm going to look at one particular stock to you guys will be talking about in a minute. berkshire hathaway reported earnings late on friday. profits were up in the fourth quarter. you can see that shares are higher by 1.5 percent. let's talk about the longer term. looking at them going back to 1996, that is when the b shares were approved created. inception it has risen by about almost 800,000%. the average gain in the book versus 9.7%int 2%

for the s&p 500. if you look at the recent big holdings, to be specific, over the past year, you have not seen as strong performance. berkshire hathaway over the past years down about 9%. the only holding in the green's coca-cola and it's very slightly in the green. ,f course, with these holdings you have to go back to how they have done since inception. since his strategy tends to be buy and hold. ibm, for example, going back to the first quarter of 2011, that's when he took hold and the stock has not done well, though he continued to praise it you can see it's down nearly 10%. those other top holdings, he has booked profits on them. overall, and thank you for these stats to peter, our producer he's put $54

billion in his top holdings. excuse me, he's put in $59 billion. he has almost doubled his profits on his top 15 holdings. ibm there is definitely one of the outliers. matt: cool. thank you ray much, jules. we are going to continue along that road with the warren buffett annual letter going beyond nuts and bolts and into the state of presidential politics. he says that the rhetoric on the campaign trail has been negative and that as a result of this negative drumbeat, many americans believe that their children will not live as well as they themselves do. wrong.ew is dead the babies born in america today are the luckiest crop in history." let's bring in no, he has been all over this weekend's annual reporting on berkshire. this crop of children will be the luckiest born in american history? that's a strong statement. noah: yeah.

i mean, it was quite forceful. we have seen this kind of language from him in the past, but he really went above and beyond in this year's letter to discuss why he thinks america is so great. it really boils down to the fact that we have a capitalist system that keeps marching towards more and more productivity. we have more gdp per capita. than whatmore today we had when he was born. justarren buffett, that's the key factor. he basically said to shareholders, also speaking to a wider audience, we should put aside what politicians are telling us about the state of the economy right now because over a much longer time america really has worked out for society. all of thisa set stuff before. he said before that people born today are extremely lucky, they will be well-positioned in the

future. but it is significant because it is a political year, right? we know that he's gone into politics before. he avoided endorsing anyone in the letter, right? yeah. i think that there was a chance that people would be mad if he did. the letter was in the place do that, but you are exactly right, he has been waiting into politics. he's been clear about supporting a hillary clinton and expects her to win the campaign. yeah.ut, but the subtext for the latter was really that he was making some political statements. i get his point that this generation of babies will have more gdp per capita. i guess you could argue about whether or not that makes them better off. what about this year? the u.s. economy right now, so many people are fearful that we are headed towards a recession

and the economic indicators don't really point that out. noah: he doesn't give short term forecast is much. he did think that railroads for berkshire hathaway would have a tough year. partially due to the fact that oil prices are low. nsf had been a big beneficiary of the onshore oil boom in the u.s., hauling materials to places like north dakota, hauling the oil out. that is one short-term prediction he gave. but he did not say much in terms of short-term gdp forecasts for the u.s.. matt: he always gives a mia culp about his previous year's investment or strategies. that he have one in his letter? noah: he did not have a big blunder that he pointed out, but he did make clear that he would probably make more in the years to come. that candor, if you want to call

it that, was still pervasive through the letter. really quickly, on ibm, let's not let him get away with one of the worst performers, ibm. is this the year where at least it was proven that this was a smart investment for him? you know, he really wasn't willing to throw in the towel. he is defended it in the past and said the jury is out. said he is not throwing in the towel, he likes the cash the business generates and thinks that over the long haul the stock price will rise. lightingks like he is up on bonds. what is the significance of that? noah: that is a long-term trend at berkshire. it's not the place he wants to put berkshire's money. he saw that continue last year.

interestingly he has been borrowing to do his acquisitions . he said he plans to issue about $10 billion in bonds to fund his purchase of precision castparts, the manufacturer that he bought earlier this year in one of his biggest deals. matt: sometimes you like to sell when you don't really like to buy. that's how the market works. thank you, noah. still ahead, economic woes in china are bleeding into the asian art market. that is next. ♪

you know by now, economic woes in china, bleeding into the art market as we head into a selling week for asian art in new york city. absent chinese buyers are expected to impact the sales. james is here with more.

so, asiaweek, right? meaning all the galleries and auction houses are selling off their art? >> it's a kind of ten-day long asian art and anza in new york and abroad where they come in and kind of offer as much art as they can in as short a. of time as possible. chinese buyers have been increasing in numbers? james: they have mainly become an increasing force in the asian art market. well,aler said to me -- if i have 10 collectors in new york city, i'm busy. and there are 10,000 collectors in mainland china. they are a huge section of the market. and they have been retreating. they have been retreating for about one year. this is the first asiaweek where dealers can take stock and look at how their sales have been and how their sales have been affected by mainland china and actually think about pivoting in

ways to bring new works or works that kind of appeal to a change market. matt: if you have 10 in the u.s. and 10000 and china, a retreat is something you can deal with. does this look like gdp where we are dropping but at least it is still 6%? definitely some dealers have been able to compensate with european and american buyers, but primarily it affected the middle markets of asian art. that is where you saw immense growth. now we are also seeing it incredible slowdown. deflated by 30, even 50%. betty: is this mostly in the high-end? what's the price point? the high-end is pretty stable.

there are probably 12 people who are fascinated by neolithic jade objects. matt: make up 13. [laughter] i can't get enough of those. james: right. exactly. who couldn't? but for the rest of the people it's pushing up the middle, where maybe it's an interesting work that is flawed and would normally sell for $50,000, but in 2009 it was selling for $150,000. now you are seeing it come back down. betty: who are the buyers that could come in? as matt was pointing in, -- pointing out, who are the buyers? james: a lot of people hope -- there has been a strong interest in collecting asian art in europe and america for the past 500 years. exists. interest still i think a lot of people are hoping that american and

european buyers priced out of going toe market for be able to step back in and kind of apply the renewed spending power. not get pushed aside by the chinese. matt: for sure. talking about the asian art market. you can read more about luxury at "bloomberg pursuits." just had to the bloomberg. we are getting some apple headlines from bruce sewall about the fbi request. iphonethat creating an back door would weaken security for all and that the fbi issue is an extraordinary one. stay with us for more. ♪

matt: if 11:00 here in new york. i am matt miller in for betty liu. mark: i am mark barton.

european matt: we are going to take you from new york to london to geneva. this is what we are watching. apple comes across with headlines saying they think this case should be decided in the congress and not in the courts. the volkswagen ceo tells us he is trying to restore trust the public after the scandal. europe's biggest carmaker. a big move inakes the u.k.. we will look at why they have the potential to challenge the industry. matt: the big upset at the oscars,