u.s. stocks into years. we saw the worst week in two years as well. thenasdaq is the better of indexes. a lot of the tech names have been leading the way loeber. we have just bounced off of the lows. it is going to be important. steepening we have shift.ut the overall it is interesting. we are seeing the two-year price rallying. we have seen a tightening of financial conditions. at some point the market will say how much is enough? the catalyst was a better than expected jobs report.

and some comments from the dallas fed president that sound more hawkish than people anticipated. optimismd a lot of being talked about. we have been asking why rates have not reacted. scarlet: let's go to abigail doolittle for a specific look. >> you really nailed it. s&p, deeply in the red. we also have the fear index up 26%. the highest level since the election. the complacency in the markets we have had, starting to shift in the weekly declines, significant. the worst week since january of last year. february, since june of last year, it is a different story.

majorhe least of these averages. s&p 500 since september. the worst a since the brexit. we can see this trading action. 2%.ee the dow is down the worst day going to the brexit. this thing we are seeing today only highlighted by the brexit selling. truly some true selling action. sellings -- sellers taking control. nasdaq, it has to do with the energy names. goldman sachs down 4.4%. test are more

strenuous than in the past. apple having its worst day after they did miss the december quarter. both chevron and exxon putting up sloppy quarters. back above $65 a barrel. these are the shares that are dragging the most on the dow. you both were talking about rates. the 10 year yields, we are going to see the 10 year yield at 2.84%. technically confirmed for well above 3%. this suggests we are seeing a repricing of risk. it suggests the economy could slow and make earning streams look less attractive. seeinglloff we are really does appear to be a multi-asset class pricing of risk.

julia: thank you for that. let's get a look at the bloomberg first word news with mark crumpton. mark: house republicans have released a memo that they say shows surveillance abuses in the early stages of the investigation into the trump presidential campaign and russia. was amo says there troubling breakdown of legal processes in that investigation. after the memo was released james comey tweeted that is it? . he called it misleading. the white house press secretary said the memo raises serious ofcerns about the integrity decisions made at the highest levels of the department of justice and the fbi to use the government's most intrusive surveillance tools against american citizens. michiganc moment in a sentencing hearing for larry

nassar, convicted of sexual assault. the father of three victims talk -- try to attack them on the stand. he was tackled by bailiffs. the mantle the judge he would like five minutes in a locked room with nasser. the judge says there is no way she will punish him. head of the united nations says he is encouraged by the improvement of relations between the two koreas that the goal is the peaceful denuclearization of the korean peninsula. gutierrez saysal he was pleased with the reestablishment of a military hotline between north and south korea to avoid situations that get out of control. winter olympic torch relay reached the south korean city today marking one week from the opening ceremony. -- over 7000unners

tourist barriers will travel through nine provinces and eight major cities before the torch arrives injunction for the winter olympics opening ceremony february 9. global news 24 hours a day powered by 2700 journalists and analysts in 120 countries. this is bloomberg. >> let's take a look at today's selloff. the worst week in two years. tracking down 2.3%. still off of the load. bloomberg. in great to have you with us. talk us through it. >> the bond market was a huge catalyst.

we already have this specter of inflation hanging over us. the jobs data hit. anyone who had any doubts, that removed them. people started heading for the exits. he saw yields spike. year sittingthird above 3% all day long. you are seeing a reevaluation of what the valuation should be. red-hot.as been people were looking for an opportunity to realize the gains. >> we talked to one person who said there was no reason to save. you had one of the best years on history. is not much reason to stay in figure out what is going on. it is better to move your chips in a different direction and see what happens next week.

at one point, when do we feel comfortable with this? healthy. >> are we seeing a correction now? someone i spoke to, he said is the corrections we have been waiting for. he meant in a joking way. the markets were at these healthy valuations. we are now starting to get the data, this transition with the fed and maybe what they have been up to for the rest of the year giving people a reason to say this is the top. julia: what do you mean in terms of potential downside? we have had the heat taken out of the market. >> everyone is looking at that

5% marker. when did it begin? we have had a couple of down days. tiede have the string together and that is causing the concern. let's just ride with it and we will do our best. scarlet: it is now perhaps a trend. our people giving you an indication of where they are taking their money? is it to reenter at a lower point here or go to the emerging markets? what are you hearing? >> what they are telling me is no one is giving up on equities. this is not the correction where everyone is saying we are just going to blow it up and move the cash. people do expect a bit of a breather. let's see where the valuations are going to go. we still have 200 companies.

, we jay powell coming in want to see what the fed makeup is going to be. you solve the dow, three and a half percent. when we are talking about that this is healthy. not disorderly. it is not a panic of any sort. the last time i checked, you saw 90% of the stocks -- stocks were down. something about three quarters of the stocks in the nasdaq down. every stock in the dow is down. you do have some that are up. people are looking at amazon.

they are saying this is a place where you want to put your money. it could have been up more. there is some optimism that are healthy companies out there. but there is going to be a reevaluation. julia: even the dollar is benefiting today. >> for once. julia: thought we should mention it. check of theick stock exchange. coming up, a solid jobs report this morning. we will discuss that next. julia: this is bloomberg. ♪

julia: this selloff and treasury's the top 285 for the first time since 2014. 200,000, wages rose the most since the recession. it is great to have you on the show. sounds like a reassessment in the markets. where fed pricing is concerned. they are a little bit behind the curve. >> markets want a narrative to focus on. is, they hike a lot

faster than you think. said if youte that ofk at the job growth, 45% it has been in three sectors. year,as happened last these a low wage sectors are not the source of higher inflation. gdp growth, there has been a lot of consumption. financedthat has been by a drop in the savings rate. investment, when you look at the their attempt that the markets are focused on, the underpinnings, will inflation be higher? >> no question. will the fed react to it? we don't know. how nervous is the fed about

being behind the curve? the markets are pushing anxiety levels. you can see that from the 10 year. questionis that added as well. mainly because the invested software that creates efficiency. will that result in more efficiencies? >> that is what they say. the hope and the prayer about consumption spending, it is aggregate demand.

we are increasing the inductive -- productivity. is all the gdp growth going to be inflationary? that limits the amount of pressure that is going to be out there. that pushes the corporate managers out there to be more long-term. julia: overall, has anything changed? >> the narrative has changed.

maybe fed increase the tightening? they may possibly increase. , even if rates even worse, price competitiveness has been enhanced. we have so much technology that , firmsprice comparisons are going to be reluctant to increase prices. if the talking points have changed and everybody is rethinking the framework, we are seeing asset prices yield higher. how does that add to the volatility? how does that affect the narrative going forward? a sustained pickup and volatility.

does that impacted the narrative? .> we have had 10 years premium, the spread between long and short rates is now negative. that means that we are paying the government for the privilege of parking our money with the government. why would we do that? investors around the world would the treasuriesth now but that is starting to around. there is a long way to go to normalizing these treasury markets. it will mean these spreads have widened. there is repricing to be done. markets tend to act first and

think later and they tend to overreact. to be cautious about how much overshooting will be markets be pricing in? scarlet: good perspective there. our stock of the hour is a victim of rising costs. it is clorox, declining after it said gross margins could fall. julie: it is a perfect example that in capillaries -- that encapsulates the issues in the year ahead. theox coming out with statement that it could miss estimates. gross margin could decrease modestly. it is pointing to higher input costs and tightening transportation markets.

it came out and said if we need to take pricing to protect margins and investing back in the business we will. , we have seenlook in margin recovery, closer to the 44 to 45% range. we could see further declines from here. consternation.e shares fall up more than the broader market on the back of these comments. is affected? >> sure. we have seen costs going up. seen increases they are. year.e it over the past

this is affecting companies like clorox. the other piece is hourly earnings. taking a look at the bloomberg, we have the profit margin. average hourly earnings in blue. hopefully we can see that here. earnings beat estimates. good news for people making harley wages. what effect is that going to have? they are lower than they were three years ago. lower is better. great insight. thank you for that. we have breaking news crossing the bloomberg now. the u.s. government has prepared a settlement offer to chrysler

over emissions cheating allegations. bloomberg has obtained a copy of the settlement document. any further headlines google you. it to this is bloomberg. ♪

julia: let's take another look at the worst week for u.s. stocks in two years. now, jim polson. give us some perspective. the biggest weekly move we have seen in two years. we are still talking about three and a half percent of the majors. everyone said a correction would be healthy. >> this does not feel like a panic yet. on the futures open to see what

monday morning looks like, we had such a ferocious rally to the upside, we are going to get a 3% correction. it is nothing more than that. there are some elements year that would argue perhaps that this has more legs on the yieldse, particularly if julia: continue to rise. do you expect that to happen? >> i kind of do. we have been changing the sand under investor us feet for a wild. we have seen the dollar go to a three-year low. tips goseen the 10 year to a three-year high. we have seen crude oil improve above $65. just a lot of things have changed.

the challenges they are presenting are growing. ok.let: you are going to stick with us. this is bloomberg.

♪ julia: what'd you miss?

into theks weaken closing. the worst performance for u.s. majors and two years. the crux of it, the bond market. yields continuing to track higher across the curve. i am julia chatterly. scarlet: i am scarlet fu. joe weisenthal is off. if you are tuning in live on twitter, we want to welcome you to our closing bell coverage every weekday. our marketth minutes. we'll need more than a couple minutes to tell you what happens in equities and bonds. this is what it looks like at the end of the day. this was the selloff into the close with major indexes closing at their session lows. for the week, as julia mentioned, the worst week for years,, s&p 500 in two since june 3, 2016. the big mover was higher in rates.

it really took off today. julia: the global basis, as well. we have a weaker hand over from europe. some of the strongest handoffs we have seen your today's are some of the weakest and today's sectors. . absolutely. i'm looking at the movers on the day, the best performers are utilities and discretionary stocks. they fell believed rigorous performers are energy, tech, and materials. a lot of these have momentum behind them and the gains had lastplied through the couple of weeks. let's move it to a five-day, which give you a glimpse of the week. energy, material the worst. cyclical companies leading the way down. telecom and utilities, more defensive names with higher yields doing a little better in the context of things. julia: we talk about the race curve, we have seen steepening on a dramatic basis over the past week. you would expect to see the

financials still down but the out performers overall on the week. scarlet: only down 2.9%. julia: scarlet: only. exactly. energy down 6.5%. let us get you individual names moving. fiat chrysler was a late mover .down 7% the department of justice lawsuit ifsettle a it pays major fines to settle the diesel omissions cheating scandal. of course, it cannot specify what the fines were. exxon mobil the worst performer and the dow jones off by better than 5%. bigabet and apple, two names that helped drive the nasdaq to record highs, lowered today after disappointing results. for alphabet, it had higher traffic acquisition costs for the fourth quarter. iphonese, the number of sold trailed analyst estimates. the revenue outlook raised concern about whether the iphone x can spur the kind of salespeople had grown accustomed to. julia: it is a phone company. scarlet: at the end of the day,

it is a phone company and gets more than two-thirds of its revenue from the iphone. julia: they have to prove they can do something else. here's the crux of the done we have seen in broader asset markets. you can see the two-year yield higher. i'm sitting in the one-week chart. look at the 10-year and 30-year. quite significant steepening of the curve. the analysts were saying we would have an inversion, getting a bit of a rough ride over the past week. that certainly is filtering and. we are seeing a broader -- filtering in. we are seeing a broader reinvestment of economic conditions, markets anticipating the difference between what they believe was going to happen this year and what the fed was closerng, moving together. that is having a feedback loop into what we are seeing in currency land. they have been going on all week about how the dollar had not benefited from any of the negative sentiment we have seen. the dollar index

popping higher in the session today. i'm showing you the one-year chart here, which i guess is not very helpful. you can see the broader dollar decline. do not get too excited for a pop higher. almost up 1%. we also had you wish consumer sentiment reading and the job -- in the job readings today. the major movers today, euro-dollar lower by 0.4%. to point out some of the weakness we are seen in aussie versus the u.s. dollar, as well. but we saw with the u.s. 10-year treasury rising above 2.84%, it pushed that rate differential . time since first 2000 it was having an impact in the currency. you can see it was a dramatic underperformer, at least for the

session today. a quick check on what is going on in the nafta-related currencies. r canadaeau fo saying he is willing to walk away from the nafta negotiations. if i had a canadian dollar for every time someone mentioned they might do that. as he can see we are ready have the dollar gained for now we see the dollar pushing to fresh h ighs. $124.36. the peso also, as you can see, the mexican peso their lower by 1.5%. scarlet: i like how you showed the one-year chart for the dollar because that has been the trend all year long. the move higher in the dollars temporary. purposeday but it has a when you look at commodities. there is an inverse relationship when you look at the dollar in the dollar commodities. when you look at oil prices on

the day, they extended their losses after the equal and 30 jobs report. they tried to make a bit of a comeback, but the end of the day down by better than 1%. for the week we will see it down at 1.6%. aroundd some stability $65 a barrel right now. for now, that is where it is that we look over to the metals. strong u.s. jobs report triggering the spike in the dollar. you see it across the basin presses metals. -- base and precious metals. those are today's market minutes. for more on today's market selloff, let us bring in cameron jim paulson. cameron, we spent a lot of time talking about the stocks. really, the movement here, we should be focusing on is moving rates. cameron: i think that is right.

it is the big, the macro issue of the year. have a gun to the point were good news is bad news in the economic growth in terms of wage growth? does it mean they have to hike rates faster than they have in the past? move higheret the in yields you have observed in recently-released positioning reports. noncommercial traders have never been more sure of two-year note futures. people are clearly betting on higher yields. moving forward and that has an impact on us. scarlet: it has been a while. it feels like we're getting closer to normalization. julia: dun dun dun. but some of the equity moves we have seen this week. yes, it has been a tough week for investors and equity

markets, but if you put in perspective the gains we have seen today, some balanced which is assessment, what you can provide if needed here. cameron: it is a psychological phenomenon where as soon as you make a bit of money in the market, you sort of assume it is want to hangt you onto every last drop of gains. are not used to being punished by the occasional drawdown -- and let us basic, over the last 14 months, you have not been -- and you sort of feel entitled every time the market goes up to that money because you know olga up the next day. this is a little bit of normalization. julia: the fear of missing out. fomo. scarlet: that has been driving a lot of the moves. earlier about how the narrative is changing here. people are rethinking what the federal reserve is doing, whether they are behind the curve, maybe not so much anymore.

what are you hearing from your clients? what are you hearing from customers he speak with? are a lotink they like others. they have been made more optimistic by the trend by the last year, by the economy in the markets. he markets. they're concerned with a high valuations. i think it is a move from good news to bad news. over much of the recovery, we have had sluggish growth low growth.n -- low inflation, low interest rates. now in the last year and a half, we have come to the conclusion that the u.s. is doing better and growing at more like 3% in real terms instead of 2%, 5% in nominal terms. the whole world is in a synchronized growth expansion for the first time ever. at the type of environment, run theo longer recovery with low inflation, low interest rates. if you want to get higher

earnings, we will also have that with higher inflation and higher interest rates. that means we will have to lower the valuation of stocks and bonds. this is an adjustment, and i do not think it is over. in might not continue with the straight line next week, but i think it is an adjustment of lowering the stock market's p valuation and raising the yield bonds to reflect the u.s. growing economy, 5% plus nominal terms, with wage and cpi inflation moving about 3%. we will probably get through it but it might mean a 10% to 15% stock market correction with the treasury of 3.25 to 3.5 before it is over. do not think it will be a straight line in the next week. they could be. sometimes it does it in a flash, or maybe it is the start of a i think we have a

little further to go. i think the world economy and the u.s. has upscaled its nominal growth rate in a fully-employed economy. that will mean we have higher inflation and higher interest rates and lower valuation on financial assets. julia: i was just talking about fear of missing out. would you think of that? 10% to 15% correction that jim was talking about. what drives it? cameron: it is possible. many times in the past, i wou ld say if he is right about the 10-you're going to 3.25%, three 3,5%, can we do that? you will see alligators come in and tell their portfolios more toward fixed incomes. pension funds have not had an opportunity to get a 3% 10-year in more than four years. at some point, that will become more attractive. and then your terms, th -- in the portfolios

were you by 60% in stocks and 40% in bonds, you have made money like nobody's business over the last year or so, it is having a bit of a drawdown. maybe we'll start to see people get out of that strategy a little bit. julia: jim, what is the trade then? i think that i am not sure the bowl is over. -- bull is over. in the meantime, i would do some things. i would debond my equity portfolio a little and not have in stocks inrest my portfolio. i would move away from the united states. i do not think the international markets have to correct as much of hours. i look at a little -- as ours. i would look data little

commodity -- i would look to add a little commodities. for the first time, cash has a return and it will make close to is getting to be competitive return. i would raise a little cashier until the market settles down to lower levels. julia: one mind to finish it off. cameron: i think he is right about cash. for years, cash has been trashed, and maybe now cash will be flash. [laughter] scarlet: cameron crise. paulson. julia: cryptocurrencies lighting. -- sliding. starting off the new year and red. why there are more concerned industry.the this is bloomberg. ♪

mark: i am mark crumpton with first word news. the white house says the newly- released gop memo raises serious concerns about the department of justice and the fbi's handling of the russia investigation. impressed. isn't he asked on twitter, "that's it?". he calls the memo dishonest and this -- misleading and not worth the damage it does to distrust in agencies. it was released today by house republicans the claims the fbi abused surveillance powers in the russia probe. future of nafta in doubt, secretary of state rex tillerson is in mexico at the start of a five-nation trip to latin america. it comes at a time attention of her president trump's insistence that mexico for a border wall, as well as doubts over the future of nafta, the north american free trade agreement.

secretary tillerson' and mexican officials were expected to discuss migration, the fight against crime, commercial realizations, and venezuela. the trump administration is targeting hezbollah's financial network with new sanctions in a iran'sundermine influence overseas. the treasury department says the sanctions target a network of companies and lebanon, donna, like beer -- ghana, and liberia. it says hezbollah sense them $700 million a year. s.e flu outbreak in the u. shows no signs of slowing down. the center for disease control and inventions as one out of every four visits to doctors and clinics last week or for flu symptoms. that is the biggest since the swine flu pandemic in 2009. experts thought the season might

be bad, but the intensity has surprised most health officials. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. julia: what'd you miss? deflating, bubble is falling below $8,000 for the first time since november. it drops issues in the cryptocurrency. by rob irving. look over the last week in terms of the new slow. rob: one thing i find fascinating about this is.it fast forwarded everything is moving so quickly . i cover the mortgage crisis and the housing boom followed by the bust, which was eight years. this is on the space of a few months. there are a lot of things.

the issue is lack of transparency in cryptocurrencies. there is nobody in charge by design. striking to me this is the year, of the past year has was the moment where it confronted or embraced by traditional finance. it was created to make it so you don't need a bank. you can be your own bank, was the idea. the banks started getting involved. just today, bank of america said it would not let its clients use their credit cards to buy cryptocurrencies. scarlet: over half the tide is starting to shift a little bit. it has certainly shifted for long blockchain, which used to be long island ic. we have a chart here on the bloomberg, which shows the company stock price in white. volatile.etty this is since last october.

mirrors then, it bitcoin price. what is going on with the company? it was trying to do something and now it is backpedaling. rob: there are a lot. kodak was one. they were going to have a crypto coin and they put on hold. it is the fast motion. i remember the .com boom. they would just stick .com on to their company's name and it would go up for a long time and then they would say it is not really in this business. long island iced tea was never in that business. they talked about it. they got on the bandwagon. unfortunately, the bandwagon went off the rails. julia: it could be delisting from the nasdaq. the pop higher we saw and share price. -- in share price. we have a great chart that shows some of the other prior historic bubbles we have seen.

to give you a sense of the run up we saw in bitcoin. bitcoin is white. and we can. the things -- and then we compare to things like tt his. what was that? a flat line. just again a bit of perspective here on the highs and the lows. you know? scarlet: a lot of perspective is needed here. you said you were there for the .com bubble. if you look at bitcoin, it is still very much in a bubble. rob: i was thinking today right around the time it was about this level last year in november, i was talking to asset managers, who are interested and getting into it. they called it an uncorrelated asset boom in the market. today, everything is going down. [laughter] scarlet: red across the screen. urban, thank you so much. julia: diversify from bitcoin, moral of the story. merges the etf that

world of blockchain. this is bloomberg. ♪

scarlet: what'd you miss? innovation shares lost the for -- launched the first etf that combines artificial intelligence and blockchain. andses the ticker koin utilizes natural language processing to determine sentiments and their creative portfolio of up to 60 stocks. joining us to discuss is matt markovich. great to speak with you. talk about how this idea came along. there has been a sensation to use a.i. to pick stocks in your

portfolio. matt: one of the things about this is they span sectors and borders. the traditional approach is not as useful when you are looking to construct a portfolio, pass the portfolio, using something not very apparent. using a natural linkage processing algorithm, we are able to screen for certain keywords relative to a theme and identify stocks that have relevance to the theme and apply a sentiment score to them. julia: define relevant to a theme. we were just talking about long island iced tea that tried to become part of blockchain. scarlet: it actually did. julia: temporarily. it would be very concerning for your system. would that be in the filter? matt: correct. one of the advantages of using our process is that it looks to seek companies that are treated

beyond noise. that are not the next blockchain wannabes o -- that are not the next blockchain wannabes. julia: did have to have some kind of history? do they have to have been talking about blockchain? do they have to have an understanding or business in it? houses ai help you separate -- how does a.i. separate this? matt: it is a rules-based approach. we're looking to capture the collective wisdom of the crowd. media talking about certain themes that are on top of investors' minds. our process allows them to filter through the noise. it is not looking at a short-term idea. it is looking at a longer term trend. ,hese are investable themes scarlet: not tradable themes.

i am looking at what is inside c -- not tradable themes. scarlet: i am looking at koin.le themes inside what ise when can make the argument you can buy a bunch of text etf's at ortech etf's at lower costs financial ones and get the same kind of closure and not pay up, because you are not coming up with original names not already in other etf's. matt: sure. the double is in the details. because you have purity overlap, you have to look a little deeper. is so happens that technology and financial are sectors that are more leveraged to ere wehain, and that is wh feel our process and approach will shine in the years. the industries will change. julia: we wanted to make the point this is very, very different from what is going on in crypto world. we will come back and discuss

this again with you. managing director speaking to us. from new york, this is bloomberg. ♪

mark: i am mark crumpton with first word news. the head of the united nations says he is encouraged by the improvement of relations between the two koreas, but the goal is still "the peaceful denuclearization of the korean peninsula." speaking to reporters in new york, antonio guterres said he was pleased with the reestablishment of the military hotline between north and south korea to "avoid situations that get out of control." one of the world's most notorious spammers has been expedited from spain to connecticut. facesssian probe hacker fraud, identity theft, and

conspiracy. he is accused of using malicious software to hijack computers. he sent emailed advertising fake drugs, pump and dump penny stock schemes and other frauds. prosecutors have been pursuing the skimmer for a decade. mexicans living abroad send home a record $28.8 million to their families last year, an increase of more than 6% from the year before. that amount has been rising steadily among mexico's most important source of income after auto exports. they said what they sent their loved ones is more than what they earned from exports or tourism in 2017. are replacing an old electronics box for the main and 10 on the russian side of the space station. it is the seventh-based lock in as many weeks. on january 23, two u.s.

astronauts installed a new hand on the station's robotic arm. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. what is scary cap of today's market action. the action was all downhill in risky assets. certainly, the dow off by 665 points. the low of the session. we sell into the close. the dow off by 2.5% for the week. it had its worst week in two years. i think this qualifies as a selloff. julia: it does. we have been talking all during the show about the pressure we've seen in the rates market, particularly to the steepening of the curve contributing back to the pressure we have seen. scarlet: the 10 year yield getting to its highest. two-year yield move up and now we see thw 10-year

yields get a higher. -- the 10-year yield get higher. julia: what'd you miss? snapshot of the american economy this morning adding 200,000 jobs in january. report from on that matt. always good to have you. you tell us things we did not spot in the numbers. what is contributing to the wage growth we saw this quarter? >> that was the big story today. the fastest pace we have seen from the entire expansion so far. 2.9% fromicked up to 2.7%. it is interesting to see the sectors driving that. the chart i brought you guys -- the blue line is the overall wage growth number we saw.the white line shows one of the big contributors to that , the health care industry. interesting. if you recall one week ago we got the gdp report, we were looking at the business investment data.

of businesser investment with a pick up in investment and medical equipment. this seems to bolster that story that health care is becoming a more important sector of the economy. that is where we are seeing a lot of gains right now. one interesting thing about this seet as well ais you 3% wage growth. it seems like it is maturing. there is probably a question about how much higher that can go, but that is certainly one of the things in the driver's see at the moment. julia: technology as well. scarlet: that is a really good point. especially since it has underperformed the wage growth overall for the last 12 years. it is now more than catch for -- the last couple of years. it is now more than catching up. the rebound in job growth in that sector. matt: clearly, manufacturing is kind of driving the boat lately, the last several months of last year. we have seen in a celebration -- an acceleration in this growth.

if you break down the numbers based on the industries that are hiring more, you can see that. the program blue lines here show producingses in goods implement growth. sort of split up into high-paying goods producing jobs and low-paying goods producing jobs. is on theteresting service side of the economy we are seeing a more serious slowdown, especially on the -- in the high-paying service jobs. you can see the job growth for jobsigh-paying service slowed to the slowest rate of the expansion. that is important because we are moving more toward a service ce-less economyvi were some of these sectors is what drives the growth in the country. we will want to see that turn around pretty saioon. positive outlook for growth.

julia: something discussed today was what is going onas far as black -- going on as far as black employment or black people in the u.s. economy. the president made the point in the state of the union address that the gains we have seen over eemed to year -- it s suggest the love the gains made in 2017 have been lost in the prior months. can you talk to us about what is happening overall in the sector of the economy? matt: unemployment for african-americans fell to a record low in december. the president was touting that. again, as you said in january, the unemployment for african-americans bounced back up a bit. cutting through the noise there, what that is ignoring is we had a big drop in labor force participation not just for african-americans but for the entire labor force. especially for certain groups of african-americans, this is been really pronounced.

what we are showing his labor force participation for various demographics. the yellow and blue lines show men between the ages of 25 and 34 and 35 and 44. the red and green lines show women. you can see that for the 35 to 44 age groups, we have seen a nice bounce over the last year. for those groups of african-americans between the ages of 25 and 34, labor participation is still low relative to historical levels. when you hear the statistics like black unemployment is out or near a record low, that is kind of ignoring the big story we have been talking about for several years since the crisis. it is good to keep that in mind. closer, thank you for joining us with your chart. the four pages we have all been waiting for, at least from washington dc.

promising abuses worse than watergate. devon nuñez' memo has been released. is there a smoking gun in those pages? we will go to washington next to determine that. this is bloomberg. ♪

scarlet: what'd you miss? the pages all of washington has been waiting for. releasing the memo offered by has intelligence committee chairman, devin nunes. president trump signed off on it today, against the objections of his own at the end director and justice department. for the latest, we are joined by sahil kapur in washington. tell us what the news is in the four pages. sahil: the memo lays out the

fact that the so-called dossier, it was officially written by a british operative, it talks about the role that had that the u.s. government used to surveillance a carte carter page with links to russian agents, . i guess the narrative around this for several weeks, especially from pro-trump forces and the president's allies has been this reflects bias on part of the fbi and justice department against president trump in 2016 and some sort of favoritism toward hillary clinton,, which is why it gained an enormous amount of attention. with democrats counter with is they essentially say republicans are engaging in distortions and misleading the public about what

thislly happensed, that memo is selectively edited and the information there has been chosen to paint a specific narrative. this was released by one party and one committee and one chamber of congress over the objections of the doj and fbi, who described it as saying they had grave concerns about its release. julia: sahil, haven't the democrats produced their own memos? will we see their version of events? i guess tied to the, do we know -- that, do we know if the white house had any involvement in drafting the memo released today? thel: house republicans on intelligence committee did not allow republicans to release their memo and their version of events alongside this. house speaker paul ryan has said he is supportive of the democrats releasing their minority memo once it is scrubbed to make sure no sources

will become arise. it is lightly we will see democrats released their own version of events and try to put this in context. in other words, challenge the ist the steel dossier, which controversial and includes claims that have been verified by u.s. intelligence agencies, such as the fact that russia was meddling in the election and trying to sway in a particular direction toward, trumpet also had a lot of claims that have not been verified. the democrats will argue this e only basisnot th into the investigation into trump's associates and links to russia. scarlet: i was looking at the president's twitter feed, and he has not made any public comments through twitter on either the release of the memo or the decline in stock prices today. isonder whether there anything in this memo that lays the groundwork for him or the white house to be able to start ahmmering away -- start hammering away at bob mueller's credibility.

sahil: that is a great question. is are some way the memo and the being portrayed that gives the white house ammunition to undermine the mueller investigation?we know president trump is extremely frustrated with that and has called a witchhunt. cnn reported a few days ago he has told people close to him privately he believes the release of that memo will undermine the credibility of the molar investigation. -- big question on my mind robert mueller investigation. the big question on my mind is what happens to rob rosenstein after this, the district he ? -- i if he ends up filing a report on says, rosenstein will be the decider of the justice department on what to do with this. that is theoved, position that president trump gets to nominate a successor for. you can certainly imagine the investigation the

unraveling if he is remote. that guarantees a far cry from democrats for a julia: constitutional crisis. tilde por -- for a constitutional crisis. julia: sahil kapur from washington. if anyone who read fire and fury, it underlines any credibility of the administration. scarlet: coming up next, seeing the super bowl is expensive but some fans are willing to pay a lot more for premium, individualized experiences. we will explain. this is bloomberg. ♪

scarlet: what'd you miss? it is super bowl weekend in the u.s. fans are paying a hefty price to in person.e the cheapest tickets to see the matchup between the patriots and $3230, with an average asking price of $6,330. that would be the second most expensive super bowl since ticket iq began tracking prices in 2010. entertainment benefits group is a company that offers individualized sports experiences. your client base is not concerned as much about the cost of an individual ticket, because they're looking to put together a special experience. >> exactly could the ticket is one component of what we do. what we really provided the to justin addition going to the game. the parties, if you need transportation, hotel accommodations. anything you really need to experience the super bowl in a

first-class manner, we can do that. scarlet: the patriots are in the game again and people moans and groans and they made it to the super bowl. where is it coming from from this super bowl? robert: it is coming from philadelphia and eagles fans. i would say nine of 10 calls we receive that are still being received are from philadelphia fans. patriots fans have gone to go a lot of times. people have already mortgaged their house six or seven times in super bowl's prior. the interest is coming from the philadelphia side this year. julia: what is the average price of the package that customers take from you? when you are talking about a ticket that is $5,000 to $6,000, the basic here is pretty expensive. robert: the good news -- the ticket will be the highest-priced piece of the package. you can out of the pieces. what is interesting this year is the hotel accommodations are hard to come by his minneapolis

does not have a huge amount of rooms. the hotel is expensive, as well. if you want to look at pricing for the packages i would say probably between $5,000 in $10,000 per person for an all-inclusive, luxury experience. scarlet: i want to ask you about the ticket prices more. bloomberg wrote a story about how super bowl prices are not falling as we head closer to the super bowl, a change from previous years. there is a debacle when buyers bought tickets that they did not get it. the nfl changed how it distributes tickets. what has been done, and how do you have to change your approach ias a result? robert: there was a debacle into comprising went through the roof and the nfl has done a great job coming in and they put out their own packages through one of their providers. the great news now is those packages are out a year, 7 months prior so people understand the market. if you look at the market right

markets are like any exchange. a moving market. if you look at the market now, pricing a similar to what it was a few months ago. julia: what proportion of your customers are repeat business versus ones that come for something entirely new is an experience? robert: that is a great question. for the super bowl, we get a lot of repeat customers. many people want to go to super bowl only because it is the once-in-a-lifetime experience. most of those fans come when it is their team that has gotten in the game. if you are an eagles fan and you are like, this is my chance, they will go. scarlet: stuck here at work. [laughter] scarlet: you have a partnership with the nba is a hospitality provider. compare and contrast an mba experience versus -- nba experience versus an nfl experience. robert: the together an official partnership with the nba.

we have official packages for the game this year in los angeles. los angeles in two weeks, and incredible market -- an incredible market. the difference between the super bowl and the nba all-star game, there is an incredible global demand for the nba all-star game. we are taking orders from argentina, china, europe. there is a lot of demand coming not just from the u.s. but from all over the world. julia: what about the as well fortion, what we have seen in the sport for the last 12 months in particular? has that changed people's perception saying i did not want to engage in this or invest that amount of money this time around because i am turned off by some of the behavior we have seen? robert: we are seeing a limited amount of people saying we do not want to attend the super bowl. my thought is if they put the super bowl on pluto, people would still find a way to get there.

scarlet: and elon musk would take them there. robert: you can put a package together with him. [laughter] scarlet: entertainment benefits group executive. thank you so much. julia: avocado consumption will hit 134 million pounds around super bowl. we have a chart to show you how much guacamole super bowl funds scoop up. do have guacamole with your -- scarlet: no. i usually do not with my super bowl watching. i usually do not go to a super bowl party but i know you are going to line. julia: between guacamole today and wings yesterday, very exciting. there's a serious problem here. these predictions come from haas avocado board, but we got the headline earlier about concerns in canada and they are willing to walk away. the trump administration threat to walk away from nafta may ruin avocados. to consume

a lot of the avocados being imported. that could have an impact on pricing. 2016, a great year for guacamole consumption. scarlet: it is going to be a better here if you are going to be the person bringing the chicken wings to the super bowl party. i know you are attending and you have to bring something. maybe you should consider this. julia: i am bringing cupcakes. [laughter] scarlet: because chicken wing prices has actually come down a bit from last year. supply and demand drove the price higher but they declined more than 18% in 2017, according to the u.s. department of agriculture. so many interesting pieces of data from there. julia: you can see spikes if you go back to the beginning of 2016 and back in 2014. you see the dramatic spikes higher around the season. wings, it is a good year. scarlet: speaking of the super bowl, the etf industry hasn't

been for everyone, including those tuning in or attending the big game. sports fans, we have an etf for you. with the victim upon us, the pro sports sponsor etf is looking to draw fans. itding under the ticker, tracks equities that sponsor or have broadcasting rights with football, baseball, basketball, and hockey leagues. the 70 names are based in the u.s. and range from foot locker and cbs, to papa johns and h&r block. because they are equally weighted, that means exposure to smaller consumer-driven names across industries. more than $4ered billion in assets. trading as low so limit orders are recommended when trading fans. just like the super bowl, it is a pricey ticket. julia: say sports fans again.

scarlet: sports fans. julia: you say with excitement. scarlet: sports fans! [laughter] julia: you light up. scarlet: what you need to know for next week. this is bloomberg. ♪

scarlet: what'd you miss? red across the screen for u.s. equities. 2.5% decline for the dow. s&p losing more than 2%, as well. for the week, the biggest weekly loss in two years. julia: the global yield rising. coming up, on wednesday tesla reports fourth-quarter results. julia: the boe rate announced on thursday with the governor giving a news briefing. scarlet: also coming up, do not miss this. patriots versus eagles. get ready, sports fans. julia: bloomberg technology is up next.

mark: i am mark crumpton. a newlye house says released gop memo raises serious concerns about the department of justice and the fbi' handling of

the russia investigations. a former fbi director james comey is not impressed. comey asks on twitter "that is it?". he called the memo dishonest, misleading, and not worth the damage it has done. the memo was declassified by president trump released friday by house republicans. the president says his immigration plan is necessary to protect you an u.s. borders. it offers a plan for citizenship for people brought into the country as miners. the president -- minors. with the future of nafta in doubt, rex tillerson is in mexico at the start of a five-nation trip to latin america. it comes at a time attention of a president trump's insistence that mexico pay for the border wall. the flu outbreak continues to grip the u.s.. one o