carol: from bloomberg world headquarters in new york, good afternoon. here is what we're watching this hour. oil is amassing 5% today as players prepared to discuss a production phrase but at some point, the rally also looks like last spring, and that will did not turn out well. ,he valeant ceo is back to work including making calls to select analysts. why the recent chain of events is troubling many in the markets. we will speak to one analyst. a closer look at the booming industry of etf's. concernsagency has trading products are not as safe as once thought. let's head to the markets desk where julie hyman has the latest. julie, we have been building on

the momentum we got last week. initially that wasn't happening, but then we had a shift led by commodities. if you look at the three major averages, we have a mixed market. the dow jones hanging onto its gains, one of its best performance has been to punt, on speculation that basf could make a bid for the company. if you look at what groups are doing the best at the moment, energy is getting the most, even though this picture is now looking more mixed. technology and consumer discretionary are the biggest drags even as energy holds up well. if you look at the up trend we have seen since february 11, will it remain intact after today? since that low, the bounce has been 9.4%. what is interesting, the gains have been coming.

they have been coming by the least loved groups, the most beaten-down groups in the s&p 500. we are looking at the s&p 500 since february 11. this is the financials index in blue, which had been better the most year to date, and has been coming back. finally, this is a goldman sachs most shorted index. this is also a measure of what is least to love. those have been getting the most. we talked about this with energy shares. highly shorted, and now we are seeing a squeeze. carol: you mention this is a commodity related rally. talk about what is happening in oil. julie: brent and the vti trading at their highest since december. both extending gains as the day has gone on. as carol alluded to, there is this situation where there is optimism about a potential production freeze following a

meeting with russia and opec that should be happening this month. also, the baker hughes rig count showing the number falling to the lowest number since 2009, even though supplies are at and 86-year high. there could also be a technical affect as some analysts are saying that february 11 was the bottom. i also want to mention gold. we have seen a pause in the rally we have seen in gold, but the gold etf is still rising, interestingly. a bit of a discrepancy between gold prices themselves and gdx, the gold etf, which is at its highest since may. a lot of the gold miners have also been rising, even as gold prices are falling today. carol: now let's check on our first word news. mark crumpton has more. president obama said he

once had the opportunity to meet with nancy reagan, and the armor first lady could not have been more charming and gracious. the president ordered flags to be flown at half staff to honor mrs. reagan. nancy reagan died sunday at her home in los angeles. she was 94 years old. vice president biden is bound to wipe out this evil that is daesh, also known as the islamic state. he spoke to american troops in the united arab emirates after visiting the grand mosque. we have to squeeze them out of iraq and syria so that they cannot continue to pump their poison into the region and rest of the world. and that is what we're doing with our coalition partners, fighters andaesh leaders. we are making it harder for them to a maneuver, we are cutting off their lifelines, oil

revenues and finances. mark: the vice president says the u.s. has carried out 1800 airstrikes against the islamic state since october. peyton manning has called it quits. one month after leading denver to the super bowl title, he officially ended his career in the nfl with an emotional farewell speech. >> i revere football, i love the game. you don't have to wonder if i will miss it. absolutely. absolutely i will. mark: among other things, he said he would miss the annual handshakes with quarterback tom brady. two super bowls and was named the league's most valuable player a record five times. carol: thank you. in a relatively quiet week for u.s. economic data, two said officials are stealing the

spotlight. brainerd saying that they need prudent hikes. this is what stanley fischer said at a separate event in washington. >> it is sometimes argued that the link between inflation must have been broken. i don't believe that. rather, the link has never been very precise, but it exists, and we may well at present be seen the first stories in the increase of the inflation rate, something which the fed would like to have happen. carol: recent reports suggest shaken up thes affects of financial volatility from earlier in the year, but the question now is, is the worst behind us? alan gayle is with us right now. great to have you here with us. you see the environment we are in. where are we in this market cycle, in this economic cycle?

alan: first of all, thanks for having me. i still think we have a way to go to the upside in this cycle, in this economic expansion. but i would say in managing the we areion strategies, cautiously optimistic in positioning portfolios. -- wee have seen here look at valuations, we want to see something attractive. we are also looking for macro tailwinds. we have gotten a little bit of that, but the jury is still out on whether or not the economy is truly firing on all cylinders. market momentum, the third element of the way we manage somethinghave seen that could only really be called a countertrend bounce. from my perspective, we have more upside, but the bulls still have something to prove.

we have been more neutral in our allocations to equities in our strategies, and we are looking for signs that that macro momentum is taking hold. carol: the bullish sentiment you have, is a global, is it based on expectations that global central banks will continue to do things to help out their economies? alan: i would say what we call the global fed, which is this easing by all of the major central banks, is a positive, limiting downside risk. that said, there is a point in the cycle where we need to shift from bad news is good news, too good news is good news. i think we have not done that yet. i think the central bankers in the rest of the world are doing their part to keep their economies moving forward, albeit at a moderate pace. you look at the data out of germany this morning.

again, more work to be done before this economy gets on good, solid footing. carol: you are looking at valuations, macro stories, and momentum. three, wheree should investors be focusing their efforts right now? the first thing we get in the allocations strategies was reduce our equity exposure from an overweight down to neutral. we did that mostly in the international space, which has been highly volatile. we have been pulling back on that, but within our sectors, again, we are cautiously optimistic. we are maintaining a procyclical bias. , wein our sector weights are overweight technology. we think that will be a really good story. we are staying away from utilities, which our work shows, are overvalued. carol: there's an agents and

story on the bloomberg talking about emerging market etf's surging. we have seen a lot of move into emerging markets. do you like the developing world? alan: we had been waiting for that story to develop a little more fully. i think we are going to get some positive headlines out of china with their latest moves. the actions in brazil have caused a rebound there, but by and large, the emerging markets are down for a reason. our work shows that we need to continue to watch them more. valuations are decent, but we have to look at the macro traction. carol: being patient when it comes to emerging markets. thank you, alan gayle. valeant ceo mike pearson returning to work,

bowing to set the right tone and transparent -- champion transparency. so why is he holding calls with only select analyst? 40% from backup over february. stephen schorl brings his take. ♪

carol: it is time [no audio] [no audio] it's time for the bloomberg business flash -- a look at the biggest stories in business right now. president obama is fielding criticism from the left and right. meeting with financial

regulators, he says the changes enacted in his tenure have worked. of wall street reform, our financial system is safer than before the crisis, and is much better that to sustain and any systemic woes that may occur not just within our borders, but within the international financial system. dodd-frankays the lawn named the financial system more secure and implemented consumer detections, and did not hurt the economy. speaking of wall street, the average bonus fell 9% last year, according to estimates from the new york state come troller. the average bonus was $146,000. let's go back to the markets desk. julie hyman has the check on the latest utility deal. julie: exelon and pepco. to buyhas been trying

pepco 46 point $8 million and has met resistance from the d.c. public service commission. today, exelon came out with some concessions, three proposals for the commission to make the deal happen. it is asking for a response from the commission by april 7. the crux of the concerns are over whether customers rates will go higher. we saw exelon halted for a little while pending these headlines. shares dipped after they did, and then have resumed and are pretty steady. there had been speculation that exelon might be abandoning the deal, but that is not happening. , you can see, more of an upward move on the release that the deal is still trying to get done. not a huge game. also washing -- watching shares -- the ceoceo after said that they would release

their earnings mark 15. we are seeing a bigger move higher. if you check on the bloomberg, i am looking at rate of change in the shares. they have been very volatile. this is the rate of change on a daily basis going back one year. up until september, traded in a pretty narrow 5% range. since then, the stock has had enormous daily swings. on a day like this is not unusual for the new normal of valeant. thanks so much. we want to get more on valeant. ceo mike pearson canceling a call with analysts when he returned from sick leave last week, but has been talking selectively with a few analysts who are bullish on the company. joining us now is david and salon covers valeant for piper jaffray. you did not get a call.

do this, were they selectively choose who they want to talk to? >> it is not a good practice but it is not unheard of. when you look at the chain of events, we know mike pearson had been on leave for two months. we know that they had announced a restatement and subsequently withdrew their 2016 guidance, and then he comes back and they announce a call that they had canceled. the next day, he is on the phone with a handful of analyst who all happen to have buy ratings on the stock. carol: and the day after. he talked about greater transparency for the company. so many questions about the company, relationships with other companies. why would you do something like this, especially when he says he wants to be more transparent to investors? david: if you want to come back

and set a new tone, this is not the way. even if there was no wrongdoing, the optics do not look good. matter.arket, optics perceptions matter. there is obviously a credibility gap here. you are coming back after a two-month absence, and you want to get off on the right foot. this is not going to do it, at a minimum. carol: do you feel like you got a new information that has been useful since he came back? david: personally, no. certainly, i will wait for the conference call next week. in terms of what we know about the business, talking to institutional holders, there is a view, to the extent the company reissues guidance, it will not be significantly different from the guidance they withdrew. that is the chatter. carol: would you anticipate, do

you want the sec to look into this? you think about being fair in terms of getting information out. fd isnt knows what reg about. they said they were fully compliant. do you think regulators need to look into what happened here? david: i think the answer is yes. here is why. i do not have an ax to grind with valeant. i cover a lot of companies. for the most part, companies that i have covered do play by the rules. one thing that does offend my sensibilities with valeant, there is this perception -- and it is not incorrect -- that senior management does not believe the rules apply to them. i do not know why that is. is it arrogance, hubris, a combination of both? this is the kind of thing that just does not smell right. carol: if you had been included

on the calls -- your rating is neutral. if you had been included, would you feel differently? david: no, i would think, this is odd. the reality is, there is a major news that has hit the tate. you just withdrew guidance and then you had a conference call that you canceled. the question i would have it, is this a selective disclosure, and i and possession of information that other people do not know, how do i even go out with this? carol: and there is history here, which makes you scratch your head. we have to run, thank you so much. coversnd solemn, he valeant for piper jaffray. areng up, the boom in etf's helping the average investor, but what is happening to the industry? ♪

carol: welcome back. it is a full circle for exchange traded funds. they started out as a product for the ftc but became the industry, one that is concerning for the regulators. eric balchunas has a brand-new book out on this very topic called "the institutional etf toolbox. you cover a lot of things in this book. let's just start with how etf's came to be. they were sold with the 1987 crash, investors sought there was too much of a connection and i thought they basket traded product would be good. they took the idea, elevated it

to what we know today as the etf. a little bit of the sec and the amex. carol: now regulators are looking at a three chilean dollar industry. what is it that they are really worried about? eric: liquidity. etf's that followed bonds, and derivatives. those are pretty legitimate concerns. they will end up in a decent place. now the rules are a little harsh, but those are the two things with some proposals. there is some talk about not approving products so easily. there are some products that they are looking to maybe not approved so easily. it sounds like it expected regulatory oversight based on the growth we have seen. it is not like they are looking to over regulate it. eric: right. they just want to make sure they are not cut with anything that makes it a big issue.

etf's have worked pretty well, not too many issues. you mention an etf portfolio that beats institutional investors, in your book you call of the buffet special. is one ofen buffett the celebrity indexers i talk about in the book. they love indexing for personal money. in his will, he says to his wife, 90% s&p 500 index, 10% short-term government bonds. book, i look at that formula, i look at the returns, 7.5% over the past 10 years. that beats the average endowment and pension. is average midsize pension still chasing the older yield model, but you will have more people go into more passive investments. they cannot get the best managers. carol: and you pay a ton of these on top of that.

how should people use this book? you cover a lot of stuff. it is a book about how the big guys use etf's, but it is written informally, so that people in retail can find out how the more interesting usages of institutions are happening, as well as learning about the history, the advantages. the second half is me taking you through every county of the etf world. lots to read in there. eric balchunas, thank you. you can read more in "bloomberg markets" magazine. still ahead, we are looking at the rally in oil. ♪

carol: from bloomberg rolled headquarters in new york, this is "bloomberg markets."

i'm carol massar. mark crumpton has more from the first word news desk. the: claims stemming from flint, michigan contended water have been filed against the governor. they say the governor failed to take action against dangerous levels of lead and downplay the severity of the contamination. jury trial and unspecified damages. florida governor rick scott has signed legislation requiring at least 10 of 12 jurors recommend the death penalty in order for to be carried out. florida pre-risk we required a majority of jurors recommend that senses appeared in january, the u.s. supreme court ruled on the florida law was unconstitutional. the prohibits judges from imposing the death penalty if the jury does not recommend it. a woman who survived the boston marathon bombing has been killed in a car accident in dubai. victoria mcgrath, who was injured by shrapnel in the

bombings, died in the accident. she was scheduled to graduate this spring from northeastern school of business. she was originally from weston, connecticut. the results of a new poll highlight the growing distrust many americans have for immigrants, even the ones that enter the country legally. according to the survey, 61% of americans polled agreed continued immigration into the country jeopardizes the u.s. the notion that immigration jeopardizes the country was common across age groups, although highest among baby boomers and lowest among millennials. carol: thank you. commodity markets are settling in new york. let's take a look at today's biggest movers. iron ore is the story of the day, soaring the most ever,

roughly 19% after chinese policymakers signaled they would profit the country's economic growth. oil rallying. the vti closing at prices we have not seen since december of last year, up 5.5%, brent touching $46 a barrel. as you can see, prices are closing up about 5.4%. is this oil rally something to get excited about? citigroup's global head of commodities thinks so. he said the bottom is behind us. we wrote a report a month ago that said this is a bottom, and then we gave a caveat that said, there could be another moment of weakness in april. the reason we said that, we have global refinery demand for crude , through maintenance going down. april should be the weakest month of the year for crude. it was that way last year.

year, they started to rally in february and march, and then kept him going through april and may. seasonality may not play out and we could see the real bottom behind us. carol: let's bring in stephen schork. he says the rally is driven on wall street, not on the mentalist. ted morris says there is a bottom. you do not necessarily think so. tell me why, and where do you think we could go? i know you were talking about teens for crude oil. within fivegot dollars. with regard to call in the bottom, i think it is a little premature. the rally we have seen over the past two weeks, and extremely violent rally, is only speculative driven. when you look at the cftc data, as of a week ago tomorrow, what you had was both bullish and bearish speculators liquidating their positions. the big difference is that the

bullish speculators sold their contracts back. but for every one they sold that, the bears bought back 82 contracts. contract selling one for every 82 contracts on buying, it is purely a short covering rally. we have not seen any bullish money enter the market. there in mind, there are some telltales that we are picking up in demand. that is to say, the latest weekly numbers on crude oil production are now at the lawyers number since the start of the bear market in november 2014. we also saw a definitive ango oning of the cont the back end of the forward curve. this shows the imbalance could be coming back into order. solution this a demand that provides a floor in oil prices, or is this a supply solution, that we have to gets applied to stop?

that takes a while for to go through the system. it is always supply and demand. on the supply side is what we have seem to be focused on in the past two years. north america is overproducing, saudi arabia is overproducing. no one really wanted to focus on the demand. the demand situation is a big driver. part of this bear market is driven from china exporting its deflation over the past two years, mainly to the u.s., and hence, we have seen the pullback in all industrial metal prices and oil. clearly a demand issue. it is difficult for me to say we have seen the bottom of this market complete because we have saudi arabia and iran, the sunni and shia side of opec. the shia side is certainly pursuing nuclear arsenals. the sunni side does not like that. so you will not see any

cooperation in the foreseeable future in opec as far as production. saudi arabia will continue to put up barrels of oil on the market and will continue to compete for market share with iran in asia. i know we have gotten some bullish headlines out of china today, but that is clearly a sign that something is still wrong in that part of the world. that when you have saudi arabia and he ran competing in a market , in a market that is in the doldrums, it does not spell higher prices. carol: you don't think the middle east competing, at some point, they will not see that it is hurting them to go so low? at some point, is there a breaking point? stephen: there is, but it goes beyond the economics at the standpoint. as i referenced before, we have sunni and shia chasm in opec. the stakes have never been higher.

in many respects, saudi arabia cannot and will not finance iran's growing hegemony. also, the inelasticity for oil is falling. because we are introducing substitutes to the markets. electric motors, hybrids, driverless technology. if saudi arabia does not address this today, then tomorrow, we will be driving on a lot fewer in the of oil, and market share, that is the biggest existential threat. so they have to win go these prices. 20 seconds left. crude is at $37 and change. where do you see it going? do you feel comfortable setting a six-month target, enough visibility? absolutely. at this point, you have to follow momentum. we have had a heck of a run, but there is a bullish short

squeeze. i didn't think we could get there a month ago, but certainly within distance of $40 a barrel. would expect that to trigger a lot more production on the markets. therefore, i could see oil back below $30 by the end of the year. carol: thank you, stephen schork. bigs get back to iron ore's rally today. the metal rising 19%. an analyst at barclays spoke about earlier. prices are definitely surging, as you have seen, but we have not seen any fundamental data that justifies the price levels. what i mean by that is during the month of february, the entire country of china goes on holiday. during that month, we don't get a lot of data coming out of the country. monitor china daily, and i get to see evidence that we have seen a hard turn to justify the

high prices. >> what about all of things announced at the annual meetings, that they will take ,easures to make supply go down will close factories, and will support the economy to move it more to a service economy? >> it is good you highlight that. this weekend, there was a meeting of the chinese congress where they announce their various reforms. when it comes to politics in china, you have to separate rhetoric from reality. definitely a lot of bullish sounding rhetoric out there, financing of loans, infrastructure plans announced. but when it comes to reality, that is where we are more skeptical. ultimately, these have to be consumed. we do not think the data and the announcements justify that. the npc said it would cut overcapacity in steel. you would think that would be to a curving of demand in iron ore, but today it jumped by 18.6%,

the biggest gain ever. what is going on? >> it must be me being here. no, what is going on, there has been a disconnect in the markets between the fundamentals on the ground and the trading on a day-to-day basis. with the rally we have seen, this is not an anomaly. it has followed what has been several weeks of gains in the metals markets. again, i think it is a lot of trading on rhetoric, but when it comes to reality, it has not justify the high prices yet. >> $38 in december, $63 now. $191 in 2011. give me an outlook for the price of iron ore. >> with the price of iron ore and most metals commodities, they will be trading based on what happens in china. what barclays has been saying to the clients is, when it comes to china, do not expect a miracle,

but expect to muddle through. prices will be week because the chinese economy is fundamentally slowing down. that is the ultimate message. >> talk about the difference between the demand for iron ore and steel. steel will once again begin to impact iron ore prices. demand,we look at steel steel is used all over the economy and when you are building, when you have a vehicle, that is steel. iron ore is the essential component that goes into it. this goes back to my fundamental point. the chinese real market -- real estate market is looking to plateau in the next five years. as the heart economy starts to slow down, we will see that the threw two steel and iron ore prices. carol: steel is used all that was the s analyst at barclays talking earlier today. up, another while the

weekend in primary politics. we look ahead to what is at stake tomorrow in michigan. and still to come, what it is like to be the ceo of a company when your stock dropped 40% in one day. ♪

carol: welcome back to "bloomberg markets." i'm carol massar. democrats and republicans are gearing up for tomorrow's michigan primary. a new poll shows donald trump leading in the state with 36%, ted cruz in second place with 23%, john kasich in third place with 21%. joining us to set the stage is a helical for in washington.

talk about the new bowl. how significant is this? a solidly for donald trump in the republican field. 13 points ahead of his rivals. john kasich and ted cruz battling it out for second place. marco rubio is dead last, which is a problem for him. on the democratic side, hillary clinton also has a 13-point lead over bernie sanders. michigan is an industrial midwestern state with a lot of blue-collar workers, the sort of people he needs to win, if you want to change the trajectory of the race. look at what happened in the debate over the weekend, bernie sanders and hillary clinton said that they were the ones to be at the white house. what was your take away from the latest debate between those two? bernie sanders really went after hillary clinton pretty hard on some issues. i think it was the most contentious debate so far.

he went after her heart for being supportive of free trade in the past come in principle. he went after her on her connection to wall street. hillary clinton was well prepared for this. she came storming back by pointing out that bernie sanders voted for the bill that ended of bailing out the auto industry. the export out import bank, which bernie sanders opposes, also supports jobs in michigan. her way outlawyered of those accusations. i think she neutralized that. it's been an unbelievable past week when you look at what is happening in this race for the white house, especially on the republican side. there is a fascinating story out on the bloomberg entitled "the week the republican party melted down." romney,ike with mitt they were jumping the shark a bit, trying to do anything to bring donald trump down, but it

does not seem to be working. this has been coming for the last couple of years, the fissure between the establishment, and the grassroots conservative base. this week, it finally exploded. fourweek as well as the primary contests, 18 out of 20 of them voted for donald trump or ted cruz. two thirds of republicans in every state are voting for donald trump or ted cruz. talking about deep blue states like massachusetts, red states like alabama. there is a strong message by the voters that they want to overthrow the republican party as they know it. carol: definitely some disruption going on. thank you so much. from'll kapoor joining us the nation's capital. don't miss "with" tonight.

debbie dingell will be joining them. it's time for the bloomberg business flash -- a look at the biggest stories in business right now. visio asset management is under investigation by the justice department and sec. they say a probe connected to a closed in 2013t and that the government requested information regarding valuation. visium disclosed the information in a letter. a $1.4 milliony fine in a settlement with the sec over consumer tracking. customers will how have to opt in before for resin shares customers data with third parties. let's go back to the markets desk. julie hyman has the latest. you are talking a look at retail. julie: we are looking at

burglary. there was a report in the financial times denver very is looking for help to defend itself against a potential takeover bid. the company is seeking help from financial advisors. for someoneodian who increase their stake in the company to 5.4%, that first extended 5% on february 11. burr very has been trying to find out who this client is and whether they will try to take over the company. this is a developing story. we will keep you posted and will watch the shares to see how they react. pier 1 imports is another retailer we are watching, the stock is up sharply today. it came out with holiday sales that were down .7%, but that was much smaller than the 4% at the company itself had projected. they also say earnings were 18

to $.22. this was a preliminary report. they will be coming up with a full report. nike shares are declining today, down 3.5%. they is a report that allegedly engaged in primary in kenya -- bribery in kenya, having to do with kenyan runners , and has erected into a scandal in that nation. it looks like that sentiment could be waiting on those shares. carol: thank you. it is like to be the ceo on the worst ever for your company's stock. we will hear more from the link in ceo jeff weiner. ♪

carol: welcome back to "bloomberg markets." i'm carol massar. it is not a fun time to be the head of linkedin.

shares dropped early heart, dropping 40% on the news. so what is it like to be the ceo of the company on the worst day ever? an interviewad with jeff weiner, asking whether the salon was a fair reaction. >> we were not expecting that kind of response. when you look at the core elements of our business, they remain healthy. if you look at north american for our recruiter product, same-store sales growth has remained consistent. sponsored updates, the marketing , stilln business line the fastest growing business we have to scale. post the launch of our reimagined black ship application on mobile, we have seen an acceleration in engagement on mobile and desktop. so the core elements of the business remain healthy. carol: emily chang is with us in san francisco. he sounds upbeat about the business. they: i looked at

historical's and it was more like their worst month ever. stocks have not recovered from that state drop we saw after earnings. he came into the interview knowing that we would talk about the elephant in the room. he was very willing to take a swing at my questions. if you remember, one week after the earnings report, they released video of him speaking at a meeting where he told employees, we are the same company, you are the same team, and i am the same ceo as we were before this happened. we need to say focused on growth. maybe we will be growing more slowly than in the past, but he remained confident about their long-term future potential. carol: what about where future growth comes? a lot of people looking overseas at the developing markets as the holy grail, if you will. linkedin is the only u.s. social network that has managed to break into china.

they have been upfront about the compromises they have had to make. in some instances, they have had to tell users to change their post based on what the government wants. he says those instances have been limited, far and few between, but it happens. however, he believes the opportunity is worth it. take what -- take a listen to what he said about china. .> highly competitive landscape certainly has exceeded our expectations. we are now up to 18 million members. when we started a year ago, we had roughly 4 million members in english over 10 years. so we have seen that substantially grow by virtue of localizing our core offering. i asked in this model would work for facebook or twitter, and he said we are a complete different company. the chinese government is interested in economic opportunity.

they are all about democratizing economic opportunity. fascinating interview, thank you, emily chang. you can catch more of that exclusive interview today at 6:00 eastern time. that will do it for this edition of "bloomberg markets." linked into shares are down about 4% today. as we head to a break, let's get a check on the markets. s&p 500 down .1%. fractionally higher on a percentage basis. ♪

york, 8:0000 in new in london, and 4:00 in hong kong.

vonnie: good afternoon, i am vonnie quinn. here is what we're watching. stocks are fighting to extend their rally to five days. the dow, nasdaq, and s&p are flirting with nothing their losing streak. from my perspective, we have more upside, but i think this market, the bulls have something to prove. we have been more neutral in our allocations to equities, allocation strategies. we are looking for signs that that macro momentum is truly taking hold. iron ore gains 18%, its most ever in a session, as the chinese government signals a willingness to do whatever it takes to boost growth, but is this still a realistic target for the chinese?