for what he says is the theft of american technology. pres. trump: we are going to be doing a section 301 trade section that could be about $60 billion. that is a fraction of what we are talking about. mark: the white house says the president but direct the office of trade representatives to publish a list of tariffs for public comment within 15 days. french prosecutors have increased the pressure on former and hent nicolas sarkozy is under investigation for illegal campaign finance and corruption at the link to allegations that the late libyan leader help sarkozy's 2007 campaign. sarkozy, who says he is innocent, was released on wednesday night but is under judicial.

he stepped down following the release of several videos appearing to show allies offering state contracts next change for a vote against his pending impeachment. some factions are promising to reject his resignation and proceed with his impeachment vote instead. belgium held ceremonies to mark two years since the deadly metro attack in brussels. 32 people were killed and another 300 wounded in the attacks at the airport and the rail metro station. that islamic state claimed responsibility for the violence. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪

julia: live from new york i am julia chatterley. scarlet: and i am scarlet fu. joe: and i am joe weisenthal. julia: u.s. stocks deep in the red with drama in bc. dc. joe: the question is, "what'd you miss?" scarlet: marshak is at the white house and this time the top lawyer -- more shakeups at the white house and a scandal involving sexist behavior, the world's biggest sports brand has not missed analyst estimates in six years. ♪ we begin with the selloff in equities and u.s. stocks are selling off into the close with major indexes making new session lows right now. abigail doolittle has a check on

markets. as you mentioned, near session lows and each major average on pace for the worst day since february 8 during the big february selloff. magic bearish action is a risk off day, the 10 year yield is down six basis parts telling us haven bonds are rallying so stocks selling off in a big way. a true risk off day. 500, thisk at the s&p is the story of the week because the s&p 500 on monday down, and on tuesday it was flat and yesterday falling on the fed sentiment and today the big selloff. sellerson lows -- the are that strong right now trade war concerns and continued concerns around facebook. president trump's former lead lawyer for the

special counsel investigation resigning. investors are dealing with so much right now. this is causing the s&p 500 to break down technically. iswe look at this chart, it a beautiful chart of the s&p 500, and you see the s&p 500 hiding the moving average until this year, we have a huge area it is called and diamond top that tells you the buyers and sellers are both very uncertain. of 50t the s&p 500 a load day moving average and below the 100 day moving average shows you sellers are starting to suddenly take control and you can see the index is truly breaking down. there is a big gap lower on today's action. taking control of all this uncertainty suggested that could be more of the same. we ofcond perspective, the financials sharply lower and yields are down.

we have industrials and materials trading lower on the trade war potential with the tariffs on china. and the facebook fallout and if there will be regulation are issues investors are dealing with. surprisingly,ot this is weighing on the sense of risk and stress. the merrill lynch global --ancial stress indicator the points to be made is back before 2008 we had lows before 2016 -- we are on those lows but rounding back up. spikeve zero we may see a higher similar to what happened in 2000 eight and 2011 with the big correction and the correction back in 2016. all signs pretty bearish. julia: another shakeup from president trump's legal team, john dowd has resigned.

this came after the president who a high-profile higher, has urged a much more confrontational approach. we are joined by former federal prosecutor and manage it record at the research group from chicago. great to have you with us and take you for joining the show. what you make of this quite high-profile exit and how do you believe it will change the dynamic between robert mueller and the white house? >> sometimes when you change a lawyer, not much changes. here, it is going to change the dynamics. whoeas before you had dowd, was trying to work out agreements for mr. trump, possibly to be interviewed by mueller. the current attorney has a different take and his outspoken against mr. mueller and the

investigation. i think we are going to see a little bit different dynamic between the mueller investigators at the white house , and i can translate into some action by the white house. scarlet: and we don't know where that is going to go. how unusual is it to have such an abrupt change think the stage of the investigation and defense? jeffrey: in a normal case, sometimes you will see a new lawyer brought on close to important dates. it could be a trial date or just the investigation itself. here, i think we have been seeing it come for a while. i would be surprised if the president's other attorney, i ty cobb, isn't living as well. unusual,s isn't highly everything with this case is-.

the new attorney is that experienced attorney as a former u.s. attorney in bc. dc. he has conspiracy theories and that is unusual and will play itself out. at some point, he may have a different view than mr. dowd or cobb, and this may go to court andhe president has to go sit down with an interview with the mueller team. what are the risks associated with having a legal thing that is more confrontational and a little more made-for-tv? for tv is the exact way to phrase it. it depends on who the client as. veryhese lawyers have a unique client because of his personality.

any chance for the white house to continue operating, and they say they have been cooperating with the mueller team. i think that left with mr. dowd. i think it will be confrontational with every step of the way and it comes at a junction, a critical moment. while the president said that with mueller's investigators to answer questions? if he does answer questions, will he limit the scope? mr. mueller can push this and get a grand jury subpoena, then the courts will decide that. i think the chances for a confrontation just escalated with dowd's departure. scarlet: what does that mean for the likelihood -- i don't want to put words in anyone's mouth, but the possibility the president could fire robert mueller as special prosecutor, or fire rod rosenstein, who is

in charge of the special prosecutor who is looking into this. jeffrey: i think the betting line went up on that, whereas before, while dowd made statements towards the general in charge of the investigation, that he should seize the thestigation -- cease investigation. the attorney general big fired increased. it has to be the deputy attorney general, and a.g. sessions has recused himself so it is up to rod rosenstein. while the president can direct them to do something, he will have to make the decision made whether mr. rosenstein will agree to fire mr. mueller or whether or not we have something similar to what we saw in the 1970's president's and. nixon.

with the arrival of the new lawyer have to think that that path because it could happen. inia: we are permanently uncharted waters. you mentioned earlier that ty cobb could be the next one out the door. what are you looking for to validate what you are talking about with a significant dynamic shift? jeffrey: one of two things. we will see if the president sits down for a interview and we have reports the parties are talking. that is not surprising but sooner or later will -- he will have to agree, and the ball is in mr. mueller's court. mueller is not what this that the wake the president decides he is not going to talk to him. something is going to happen. the second big will see is whether or not trump takes the actions that i discussed, which

is fire the attorney general or deputy attorney general. the last week has seen a heightened escalation from this president, very personal against mr. mueller. it is not a coincidence we have this new lawyer coming on board now. points, all great jeffrey cramer from chicago, we'll talk about this in the days and months to come. thank you so much. if you look at the markets right now, they have taken another leg lower and wonder if there is a connection to the president or during these chinese tariffs against chinese goods. i was around the time indexes began declining. julia: a great deal of nervousness in the markets, everyone impacted here as we had now towards 18 minutes on the close of the equity trading session. we have plenty more discussion to come. this is bloomberg. ♪

scarlet: you are looking at the with 15ession lows minutes left in trading and the doubt is losing 2.7%, a 600 -- point loss. if young i did notice, look at that year to date performance of major indexes, the nasdaq is actually higher in the russell 2000. 2%, thisq up for part is a price change and not the total return. russell 2000 has been almost 1%, so a little divergence here. the big cap names and tech names dragging everything down, but

for nasdaq, not necessarily for the year. julia: president trump announced another round of tariffs directly at beijing and the trade penalties include $50 billion and tariffs over intellectual poverty violations. that is tariffs over $50 billion worth of goods on more than 100 chinese goods. u.s. trade representative's say policyas forced transfers and whether or not the u.s. is ready for a trade war is scott kennedy, is the director on chinese business and political economy at csi and he is with us in washington. thank you for joining us. your take on what was announced and the message the administration is trying to send to china here. >> is a comprehensive answer. we thought would only hear an

announcement on tariffs and other measures announced later, sometime in the spring, but in fact with the president did his announced tariffs as well as upcoming constraints on chinese investment and the wto case. three big things all at once. it is going to take a few weeks or months for these to bite, but it is a new day in u.s.-china relations because of the basic decision by the president that the existing rules of the game are not good enough to constrain china. joe: what kind of reaction would you expect from china in terms and alsoatory measures would you expect them to go further in an attempt on these tariffs and is a big further on the ip front? scott: i don't think you will see the chinese given on these issues of intellectual property -- they are deathly going to retaliate they may wait for a

another couple of weeks to see what the actual products the rest decides to target with these 25% tariffs. the ministry of commerce has made a list and this checking it twice now. it will include soybeans and range also include a wide of products that are not only large in number up to boost and purple districts and purple states that the president barely won in 2016 and are important for the midterm elections. i don't expect the chinese to back down and i expect they will respond proportionately where it hits the u.s. economically and politically. bringt: i am glad you that up because we spoke to wilbur ross and we put that question to him and how he thought the chinese would respond. here is what he said. response,t a measured they are thoughtful and serious people and a note the president is being thoughtful and very serious. i don't think anybody is just

going to have a knee-jerk reaction to any of this. scarlet: very thoughtful and on will have a knee-jerk reaction to this. feelour standpoint it will like or appear the trump administration is moving in a rapid fashion, perhaps not as thoughtful. is that the wrong impression? scott: certainly it would be smart for them to go into this fight with a greater domestic consensus amongst members of commerce -- congress and main street to make sure the fight is worth it, and to go in this with greater cooperation with allies. those are two things they haven't been a lot of preparation for and have gone ahead. on the chinese side i think china is a paper tiger and so considerate that they would take the risk of responding in kind -- i think president xi is more willing to take risks and this administration gives him credit for. julia: where does this and if

you are right on the case and the chinese are willing to take risks? message seems to be cap and caught with your hand in the cookie jar and president said hundreds of billions of dollars of intellectual property theft. the chinese don't have the reciprocal stance. do think the chinese fight that or do they get it and have to level the playing field in some way? scott: i think the outcome of this is really unclear. has morehe u.s. just leverage against the chinese but the chinese are willing to take risks here, and the u.s. is not going to do this without the allies as tightly as they need to. this is a big fight for the chinese and this is about their economic system and the rule of the communist party. they are going to push hard, and at some point it will be solved by diplomats and we have the diplomatic smarts and right people in place, and know what

we want to make a deal. that is what is still unclear. julia: the u.s. commerce secretary confirmed to us the chinese have been asked by the u.s. administration to come up with $100 billion worth of things they can do to reduce the overall deficit with the u.s. you believe china can come up and will come up with $100 billion? that would be a hugely positive one for the president and a strong message from the chinese that they want to at least make the u.s. halfway here. plans -- aa has got plant economy in many respects. thehey want to try to move needle on the trade balance, i personally don't think it makes a whole lot of sense from an economic perspective. what this case is about is changing china's system of

governance so there's open competition, which would result in that outcome most likely. trying to force it by saying you to change thecide numbers once against the spread of what america stands for in any case. i think we are sending mixed signals to the chinese by saying that is what the outcome -- tell us how you are going to reduce the deficit, or open up your economy to be more market-based. those are conflicting messages the chinese are probably scratching their heads over right now. deputy: scott kennedy, director of chinese studies at csi s, becky for joining us. let's get back to markets as u.s. stocks continue to decline as we had to the close and we bounced off of risk bubbles for the session and you can see the .own off by 685 points there is buying and treasuries

and across the treasury curve, the 10 year yield moving down to 2.82%. join us now is cameron crise. is this about the chinese sanctions and goods or is this about something else? >> it is a confluence of many things. that is the immediate trigger point and catalyst, and futures were down overnight with the news emerged that the trump administration will be making this announcement today. what we have had from the indecision so far is some confusion if there will be tariffs on $50 billion of goods the tariffs themselves will raise $50 billion. it looks like it is the former, which is good. communication is saying the tariffs themselves will be 25%, but on what? we don't know.

what industries are going to get shellacked with these tariffs, so sell first and figure out the details later is the same response we got to the news that john dowd is resigning from the legal team. lawyers don't resign because cases are too easy to win, and clients are innocent. that suggests there is some uncertainty as to what the future holds with this political morass gripping the country. joe: it must be acknowledged. since we see the volatility picking up in february and over a month in the half now, with multiple stories. and theup of inflation, fed is going to hike more than people expected, and the anxiety about facebook and all of that. and today is tariffs and tariffs was part of it earlier this month as well. do you get the selling is its

own thing and people are taking the story? cameron: there is the risk of fitting news to price, and there is some of that going on. the sense that the environment has changed so much from last year that there must be some fundamental rationale, but the anomaly is not this year. it was one of the lowest volatility years on record. the correlation across stocks was almost zero. stocks --s individual the s&p 500 and other indices really didn't have that same degree as those correlations have increased. given move across stocks, the index moves more and looks worse and that encourages more people to sell. it feeds on itself and it is a virtuous cycle and it turns a bit vicious. and you at stories that the market ignored -- they provide a handy rationale to x way the

price action -- they provide a handy rationale to explain the price action. scarlet: there is a rethink going on here, people talk about it existential crisis for facebook. is there a new skepticism towards companies that wasn't there before? is aon: what we might see -- is a chipmaker the same as a social media company? they are both tech stocks but the business is different. perhaps we should start to think of the likes of facebook and google's more as media companies then as pure technology companies. they are media companies who happen to be over some technological media. even zuckerberg now is saying, maybe that is the way to go. about if we are talking

25% on $50 billion, we are talking about $12.5 billion, and a whopping deficit. in terms of notion of size, it is kind of peanuts. cameron: it is kind of peanuts unless your country is on the receiving end or your industry is on the receiving end of what china does, which we don't know yet. julia: ultimately no one wants a trade war. cameron: last time i checked, wilbur ross was not in charge of imposing tariffs. julia: there is a general nervousness -- if we go to the back end of last year even, i thought we would be more resilient to these headlines. cameron: that comes back to the idea that the volatility regime is fractured and it becomes easy to fit the stories to the price action.

julia: i will get to my question now. do we go below? cameron: gun to my head? yes. joe: yesterday -- it was fed day, and it seems like ages ago when powell held his press conference. cameron: i am a little cynical and i begin the news cycle or you have the talking point and then you move on to the new talking point. thisnk the tariff is wasn't going on the fed with have gotten a lot more airplay. the initialif reaction was that it was hawkish and the secondary reaction is it was hawkish -- dovish. let's put that to one side because stocks are going down. muchet: should we pay that attention to the fed because

they are saying it is pretty much what it was last year but we're going to monitor everything because we don't know what is going to happen? powell -- andof the trade lawyer that he is, he talks to the side and sites that everything and said we will see. cameron: as opposed to yellen who gave forthright answers. that is part of the job, to answer what you can and deflect what you can. say i don't know is no great crime, it is better than making up the answer as you go along. scarlet: but there is more uncertainty now and he is not getting an answer means you can't really take anything down on monetary policy now as opposed to -- cameron: i would take a slight issue with that, he did say they are upbeat economic growth and all the acknowledged is forecasts three years out are not particularly valuable. i don't think that yellen or

greenspan would argue that the that a -- with ssertment. scarlet: we are at the lows. a straight line down since 2:00. a steady decline here in the dow industrials losing 722 points. in terms of the biggest declines since -- the dow jones industrial average to .9% decline the most since february 8. the lowest level since february 8, and at one point last as much as 3.1%. all 30 stocks in that measure declining as well. even coca-cola and verizon. your consumer staples declining at the end. were talking about the financials and health care and whatever sector you look at you see weakness.

and the crowded like technology bearing this great run to the session. scarlet: they turned negative in the final 30 minutes of trade and utilities suite out a game of a half of 1%. industrials also losing ground at 3.3%. if you look at the volume has really picked up here. i checked earlier and we are looking at volumes that are at least 15% about the 20 day moving average. bloombergi go on the .i you have a pick up on the day where indexes are declining. not to: i think also, get technical, but if you look at the chart in the s&p 500 -- it is not particularly rocket science.

we work in this narrowing pennant or wedge of price action. it was interesting that the resistance and support were converging and essentially right about now. there's an argument to be made boogie,are going to which ever way we broke out of this formation and we broke into the downside. what you would expect a priority from this sort of thing, where you expect high volume selling. and that is pretty much what we have seen. scarlet: that's now we get peter borish. cameron crise is our bloomberg microstrategy is and he is sticking with us. peter, you been looking for some weakness for some time now. >> thanks for having me and it is amazing to me that everybody is looking for a single cause on a single day selloff. what we are having here is a

confluence of events where we this in ai don't say derogatory way, but we have a administration that is partially treating economic local policy like it is a videogame, and if it doesn't work out, there are experienced people here. everything that is taken is your reducing the multiples of the market because there is a lot more uncertainty and the more consistently we see out there, the lower these prices are going to be. if i can add one thing with regards to facebook that i don't think people are thinking about -- if you are a staffer in congress or a congressman and you are out there in a through yourdy, mutual funds and tensions at that something else, they are highly weight in the indices. andn the indices get hammer you wonder what is going on, you are going to take a bigger look. if i am a big technology company, they are going to be

under scrutiny and there's potential for them to be further repriced. joe: a point you made several times when you come on our show is essentially, you don't want to predict the future of the markets and you want to see what the market is telling you, even though you see risks in the past, are they consistent with other markets? lastis volatility over the six or seven weeks and a day like today telling you that we are breaking the trend to some extent? peter: there is an old saying meansis range expansion which expansion, and we see the ranges six branding and that is a indicator that the trend is going to reverse and go down. i would say somewhat further than people expect because the delta of uncertainty is getting far wider.

you add to that the fed forecast, which i did not here yesterday's gdp, not a single expectation of over 3%. nevermind the administration and congress is estimates of significant growth relative to the tax cut. again today we started the selloff when we decided we are going to have a record spending bill. it is a nice car wreck we are facing. massive revenue deficits while increasing spending. our priorities from a policy perspective, both internationally and of track and off that uncertainty is leading to a repricing of price multiples the stock market. julia: the problem with the elements we are talking about is it is tough to quantify the impact. we can talk about steel and aluminum and potential pensions with china in particular, but it

is tough to now down the financial implications. at what point do investors look at the market and see value here and opportunity as a result of the correction we are seeing, and that outweighs the uncertainty and nervous this that exist beforehand? how much lowered we have to go before that takes over? peter: i think further than most people expect. you said it very well because buyers are higher and sellers are at lower prices, and historically, post kennedy and post-bush and post-reagan, the year after tax cuts are very volatile. if i increase uncertainty and my tax rate is lower, i can sell and get cash and go to the sidelines and we think about it. if i have long gains, i have no problem selling. markets right when there is a intersection of time frames among participants.

longer-term, shorter-term, and median term it together. there is no arm saying i don't know what is going to happen and i will go to the sidelines. that is prudent risk management. julia: is that what we are seeing in financials and tech stocks? peter: you are approaching the end of the quarter and you have a holiday next week. i'm not sure people want to take long risks and i'm going to throw a total outlier out there. andave something coming on 60 minutes on sunday evening that is going to add to the uncertainty. scarlet: another point you brought up in the past is the look at certain metrics and kinds of companies, whether it is oil or copper prices or other groups of companies as a sense of confirmation of a downturn. right now you are paying attention to american express, visa, mastercard.

it was your rationale. peter: american express but then today the lowest 200 day moving average, i look at them and call them new brokers. if you are shopping undercounter going to the store, those are the cards that benefit. that gives a leading indicator based on the market price that the strength of the consumer. visa and mastercard in particular have held the bouquet. up can't get -- have held ok. and you havekdown taken away another component of underlying strength in the economy, then what would have to be more concerned. joe: cameron, what are you watching? railroads, which have done pretty well over the past month or so. it is interesting, whereas facebook has fallen off and pick has fallen off, the old school

well.hoo has done quite we have broken out in transports, and i am assuming it failed miserably -- but it would be another argument. the economy is generally doing ok. credit cards, companies is doing ok and railroads are a indicator of industrial activity. if this was 1975 would say that is all there is -- and obviously technology is another issue. argument thatthe the end of the quarter and month is coming and earning season is coming up as well. we know the macro data has been a little mixed so far this quarter. it is hard to know if that is indicative of a underlying deceleration or if there is a

lingering seasonal issue with consumer spending. it is another argument giving a sweep sometility to chips off the table. julia: i want to pick up on the point you are saying about the growth outlook and deflationary signals talk about the commodity markets in particular. agricultural the and industrial metals. there's a lot of separate signals. you tie them together there is something concerning their that i think about the potential of more deflationary impulse. what do you think we are seeing their? re? are buildingk they and spreading and if you look at u.s. deal, since the day of the announcement of deal trading -- you buy the rumor and sell the fact, it has gone significantly. copper had a significant

breakdown and has one level left below three dollars before it is 2.95. if you look at the atlanta fed gdp forecast, to have steadily declined almost every day in this quarter. those are all concerning when you look at the leading indicators. then you say there is uncertainty and what is going to happen with some of the consumer sentiment surveys you get to the middle of april. as just talked about, the virtuous cycle is now unwinding. remember, i tell everybody when it comes to trading, people saunter onto the show in different times, but when the movie is over, everybody wants out. markets go down faster than they move up so you need risk management and key levels. if this was just a international situation would have the russell 2000 down over 2% today. julia: this is quite fascinating, we show a chart

of the hiriniron ore. have you position yourself for the signals we are talking about? peter: there are periods to be offensively minded and defensively minded. at this stage i think one has to be in a defensive mode. if you have profits and need to stick to risk levels, get out. if you are uncertain don't put that cash right away. time is your ally. look at the 10 year after the big decline -- the tenure was still approaching 2.9. to significantly get to that level, get the nasdaq had a huge rally and made all-time highs. the market is telling you there is issues out there and that is why the yield curve is getting flatter.

we talked a number of times about that and that is not a good sign. and the dollar-yen is a important risk indicator. the haveat boones, declined towards 50 basis points, and the market is telling a message in a try to say, listen to the markets, because they are right, you are wrong, and i have to do that all the time. i've my own beliefs and my believes don't mean jack. what matters is what the markets are telling us from a profits tha. you.: we love cameron: i love you guys to. o. [laughter] scarlet: macron reporting results and on the face of it, very positive. pre-announced as well, 282 was

the adjusted eps. revenue also coming in higher than anticipated at 7.3 5 billion. was preliminary guidance less, and that might be because it had surged as much as 38% over the past month. 44.25 to went from just below 60 and is currently 57, so that is not a big pullback. julia: for more perspective let's bring in michael rocher. great to have you on once again, and we heard from peter borish of the concerns, and if you look at asset classes, what you make of what we are seeing in the markets? >> i thought peter had great things to say and he was on with

the risks. i think the market reaction today was on trade war fears. when your secretary comes out and says the affects what be cataclysmic, you are setting the bar low. pointthink that is the the market took a spin. no investors tried to digest the situation to see where we bottom out. scarlet: i know you have been say we are due for a pullback for a while and we got that in february. this isessed cameron if the moment we retest lows. what is your take? michael: when you think about how the year started, we start with record low volatility and financial conditions, and high earnings and multiples and we have this burst of you for your

post tax cut in january that all this money flowed into the market and push this up to 7% in a matter of weeks. and now the volatility spike in february started the unwind and these trade war fears are going to continue to fuel it. not likeem is volatility will die down in the market will settle back in. you see the policy released today that this is going to play out over the next 15 to 30 days. not going to disappear from the market mindset in the near future. i think investors -- as peter said -- they are going to take profits here. it seems the smart thing to do after a nine-year bull market. julia: the u.s. commerce secretary said today's announcement that this is just the beginning. joe: and president trump said more to come. us,ron crise is still with

and obviously investors are sitting on incredible gains. you coulder hand, have said a lot of times during corrections and periods of volatility throughout the nine years, that binds the debt has worked and is the dominant strategy. is that the reason to think that ultimately something has changed ip is notng the d the play here? cameron: when you take the proceeds of selling stocks and put them in a instrument, you know longer get a donut, we get 2.5%, if you know where to look. there is less opportunity cost of selling than there used to be. that being said, it is easy to the dip,e dip -- buy peter's point about expanding ranges is a good one.

as ranges expand and dips get bigger in terms of amplitude, you are likely to get a step back, and maybe the next one is going to be top percent and i will put my bit in the 2500 rather than 2560. julia: how concerned should investors be at this stage? michael: investors should be very defensive. when you come to a record volatility and these financial conditions, this climate is changing and that is white buying the dip is not going to work as well. with the fed normalizing policy and normalizing the bounce sheet even though it is at a small case, you're going to see more treasuries back on the market. the federal government has to sell a trillion dollars of treasuries based on tax cuts so we will see a different interest

rate environment. there's a structural shift to that environment that existed through most of the bull market to what is occurring here in 2018. that is why investors should be cautious. scarlet: michael o'rourke, becky for joining us -- thank you for joining us. we have more earnings news, nike reporting results with the quarter up and shares higher by 1.4% after trading. we can also tell you third quarter yes number has a loss because of the tax effect, and analysts were looking at $.53, will keep you posted on nike in the markets. from new york, this is bloomberg. ♪

julia: that's five into tonight's and and during us by phone is bloomberg intelligence analyst, your take and thoughts. >> thanks for having me. what we sawr to last quarter and it is to completely opposite storylines with nike. you have strong international growth and expression across all regions. that is something we are seeing across all exotic brands. at the same time u.s. markets remain challenging. they remain challenging at the has picture attention because of a change in leadership and the restructuring of different heads of departments. tucked is why this matters for investors at this stage of nike's growth. chen: the u.s. market is being

challenging for a while. we are looking at the retail market by continues to shrink and it is going on outside of the u.s. nike has taken the steps and have come out with exciting products like the react and vapor max. at the same time according to our checks, they took back some of the jordan rent they felt was too common to access the market. we see some positive signs but at the same time it is a transition. in terms of the leadership, it is never good news when you have a change the leadership. distraction,is a especially when the executives involved are so senior. but nike has a long history of developing leadership internally. they have a deep branch of talent that can come in and take some of the responsibilities.

so i think there is a positive outlook there. joe: we see nike shares after slumping a little but have fairly nice gains in the last several months, starting with q4 of last year. the big concern was there were painfully out of step with trends. other spheres dissipating into the background? chen: i think people are excited of the new products in the market and the reaction from the consumer site is good. across the believe market is the demand is still there. it has a healthy lifestyle in the u.s. and internationally. i think the demand is there and a lot of it is that we are in the face of transition. that wasn'tventory selling and bringing new inventory is much more exciting. the outlook is more positive at this point. scarlet: bloomberg intelligence analyst, chen, thank you for

joining us. nike shares are up in after hours trading. thething want to stress is rapid selling of equities as we head to the close. you sawast two hours selling accelerate and there are different catalyst for declines today. interesting, interest rates are set to rise. joe: anyone would have thought this week with have been dominated by fed discussion and we spent on the and tuesday previewing the fed and thursday and friday talk about the aftermath -- but it seems isolated and the beginning of the week was dominated by tech, and today by trade. it is so different than the volatility we saw in february which is almost entirely ascribed to macro conditions,

rising inflation, expectations of a faster fed policy. e is higherent them volatility. scarlet: and the explosion of short vix etf's accelerated everything. julia: we also talked about the shorter regime shift and a sense of nervousness. we have peter borish talking about the fact that the forecast it wasn'tand how about their percent, and the tax cuts and the spending bill that we see as well -- there are reasons to be cautious when you look across asset classes. financials are down 2.7% today and some of the more crowded trades and better performers are under a lot of pressure. you look beyond that, the commodities -- the indication beyond the headlines regarding trade, perhaps gives investors reason to be nervous. scarlet: it is interesting that

the volume pick up at the and and there was a lot going on at the end of trading in the final minutes, especially because we higherume trending 10% than the 20 day average and by the close it was easily 20% higher. julia: in terms of headlines, you can't quantify. the interesting part peter make is the secretary telling us this is just the beginning as far as tariff announcements. as: trump himself said it you was signing the document that this was the first of many actions. you try to game it out and what is going to be the response for a tit-for-tat thing. but if you don't know further moves hacking you possibly want to fight the responses? julia: and the fear of missing out trade and we need to see a retest of the lows? uy the dip.

julia: this is bloomberg. ♪

mark: i am mark crumpton with first world news. the house of representatives passed a spending bill that would avert a government shutdown increase funding for the military, or security, and other domestic programs. the problem might measure was sent to the senate which is supposed to act tomorrow and mick mulvaney told reporters that president trump will sign the bill saying it funds his priorities. rex tillerson said goodbye to washington today with a parting plate to the country's diplomats not to let anyone filing their integrity. tillerson the not mentioned president trump as he addressed several hundred state department workers. >> this can be a mean-spirited

town. [laughter] [applause] but you don't have to choose to participate in that. mark: when marjorie stoneman students return to school and spring in april there will be required by the school district to use clear backpacks and use id badges at all times. the school superintendent also said metal detectors may be installed at the parkland, florida school where a gunman who carried a assault weapon in a large back killed 17 people last month. president trump was the featured speaker during a panel discussion at the general next summit at the white house and added eight interesting response to the following question. >> what advice do you get to the

25-year-old donald trump knowing what you know today? pres. trump: don't run for president. i get the greatest publicity until i run for office. people get it. mark: global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: we need to get it we got of today's we get auction with u.s. stocks tumbling the most in six weeks. we can see a 724 points deficit in the dow industrials and the s&p losing 2.5%. the nasdaq performing -- outperforming i suppose. we are looking at the technical indicators and i have on my bloomberg the s&p 500 and different levels we can to watch. the 50 day moving average is the pink line, and the yellow line is the long-term trendline, 200

day moving average. with today's declines we are below the 100 day moving average. maybe that excluded the clients, but that is not clear. factorsa confluence of as we have discussed, and take your pick. and youons and tariffs have facebook in the lingering concerns there. yet the federal reserve and its plan to stay with three interest-rate increases this year. what am i missing? joe: facebook, yorty said that. scarlet: and president trump changing his legal team. for more on markets, chief macro strategist george. as you are doing your reporting and looking around the markets of different things that might have accelerated the selling, what did you notice? >> a couple of things jump out to me. the one-two punch of powell and

the selloff and the odds of three hikes versus four. that is something that changed abruptly today, and something else i am seeing is this of the selloffe and the idea of the high we got after the vix spike in early february -- financials are doing worse than tacech. we are worried about the s&p going down too much. what stood out to you today? >> the european data was a big catalyst that is not talk about enough. the risk of the possibility every trade war and the president's legal team member quitting -- all of that, and the synchronized local story we haven't talked about for the year or so is causing headwinds

and maybe the highest levels since 2014. the global economy is looking less sturdy than it did, even just a month or two months ago, and that is something that needs to get consideration. if earnings are not growing as in,kly as people penciled and catalyst as far as what happens going forward reason to buy the dip -- gets less compelling than it was in q3 or two for a last year. the bloomberg dollar spot -- we are not seeing a huge bed and a rush for safety in the u.s. dollar even though we think it is in the background like the libor. where is the feedback into the dollar?

it seems like all of this would be great into the usd. george: that is definitely one of the more confusing things going on. we are expecting the dollar to start trending higher a little bit over the past few months and it refused to happen. i think a lot of things could be going into that. the fx market doesn't trade in the exact same market as the equity or fixed income does. we could see a delayed reaction and people are not willing to admit it yet that the risks to risk asset are deserving of looking at the dollar. there are other things going on in terms of changes to the funding markets and repatriation flows are not necessarily good for the dollar, but are certainly forcing the global fixed income market to readjust. i think that is confusing the

market in the wake up hasn't had to deal with in the past. that may not show up in the performance of individuals, but where it goes especially with the dollar itself and how it response to other markets -- things are getting muddy their. re. julia: suddenly we are questioning global growth, and we are talking about the commodity space. yet the push back on some of those pmi's. --now they were dispiriting disappointing relative to dropping tot whatever it was, these are super ofitive above the 50 level expansion versus contraction, and we are scratching around for excuses here. george: yes and no, julia. more, this isee

all about derivatives and not a question of is the level of output or the growth rate going to turn negative? -- definitelyt not. -- is ultimately distanced it is meant to be a measure of the pace of growth as opposed to a measure off the level of growth. it is thes dropping, second derivative of growth we are getting at. the market is going to shift from, europe driving incremental europe isivity to, still doing a good job of growing and it is not looking like it did in 2012 or 2014. things are not looking positive as it once were because you can't extrapolate as you once were, and it seems like a blase

kind of negative -- but the derivative of global growth and where it is coming from is quite important. julia: there is sensitivity to these markets. thank you. scarlet: thank you both for joining us, and joe and i were looking at world index futures on the bloomberg and it looks like many futures are off by 2.7%. for anyone wondering what the setup is heading into tomorrow's trading or into asian trading, they're looking at declines right now. coming up next, why are u.s. politicians afraid of china's biggest tech companies? this is bloomberg. ♪

julia: we have breaking news crossing the bloomberg at the

moment. the chinese embassy in a statement saying they are not afraid of the trade war and it is confident and can will of defending itself. it urges the u.s. to cease and desist with trade actions and will not recoil from a trade war. is readying a plan to deal with u.s. trade tensions and that could be a good thing or bad thing. was marked the treasury secretary earlier today he believed there would be a measured response from the chinese. all part of a broader negotiation. it does feel that china is not afraid of a trade war than will have to see what response will get. meantime -- china's biggest tech company by revenue is going faster that apple and samsung and the company has the production capacity and technical know-how to rival qualcomm in the race to develop

the fifth generation of wireless equipment, 5g. that strikes great fear in u.s. politicians and here to discuss this max chafkin. i a huge fan, this is fascinating. talk to me why we need to focus on this company specifically and tied to what happened with.com and qualcomm. max: it is one of the most extent companies in the world, it is the biggest tech company in china, and of the big smartphone players, only one making progress. it is unique in the sense it is basically banned in the u.s. there was news we reported that buy is not going to sell their phones at all major carriers have done the same thing. this is basically a trade war quietly playing out over the last five years, actually going back further. joe: what is it specifically

about this company that causes so much --? position came from a house intelligence committee investigation. they are potentially a vehicle for the chinese to spy on american telik mutations. as the central allegation that we can't trust their chips and their networking equipment. the fear is that somehow the chinese would insert some -- some malicious code and they may open up and listen to all of our communication. it is ironically the fear of exactly what the u.s. was doing -- that we learned the u.s. was doing as part of the snowden. it is tied up with protectionism because obviously -- this big chinese telecom company could, if it continues

to grow, claim victory in the race for 5g. the chinese have better five g network and the americans that have implications on a wide range of industries -- automotive, a lot of things with the future of tech could be impacted if china takes the lead. the chinese point of view is, come on, this is a big tech company, and you are being action is. scarlet: it is not publicly traded, and is it a hardware company or services company? i am not clear what it does. max: they have two main businesses, smartphones and telecom equipment. they are vertically integrated and they make the chips that go into their phones. apple does it as well but it is hadual, they are a fearsome

said company and fearsome player in smartphones and dominic player in networking. they are acre the nokia and ericsson. julia: what access is the company have to the u.s.? if you look at chinese social media, they have grant access to ede u.s. -- they have bann access to the u.s. max: the u.s. government has put political pressure on any major network to keep them out. thea: a quick question, meat of your article is what happens with broadcom and qualcomm and the u.s. prevented that deal from happening and one of the key concerns is if qualcomm was in some way restricted in its rmb it would be eight immediate disadvantage. put that into perspective for us. max: it is unusual as far as , the novel interpretation of

the mandate and shows that how scared senior u.s. policymakers and senior officers are of this company. there is a bill through congress that would ban the u.s. government from buying any company that buys from huawei. there are reports from australian media that the u.s. warned australia and their prime minister if you expect. back.re -- a few weeks this could be bad for tech probably if it plays out. iowa, chuck grassley of whenever they are involved, it scares the devil out of me. scarlet: we see that play out with how the u.s. responded with bob, potentially by qualcomm. .hank you, max chafkin

lawmakers have their eye on mark zuckerberg and how the house committee has summit the facebook ceo to testify before congress. that seat when it happens. this is bloomberg. ♪

scarlet: after five days of silence mark zuckerberg again an apology yesterday towards best with the initial post on his website and a series of i interviews. today the house commerce committee called on zuckerberg to testify before congress, second mr. zuckerberg stated he will be willing to testify if use the right person. we believe he is the right

witness to provide answers the american people. frier,joined by sarah and watched and listened to what mark zuckerberg said yesterday, who was his message to the media and to facebook users? is that enough for the senate and house members who will be questioning him? >> his message was that this was a issue of trust with users and he is disappointed in how things worked out with cambridge analytica and feels a bridge facebook's trust. whenever realizing how big of an issue this was -- he outlined several steps you was going to take, like doing an audit with developers web access to a user friend data beyond users using the app, which is a cambridge analytica got this. that wasn't enough for lawmakers and they want him to testify. users feel it is too little and

too late and investors feel zuckerberg did not address the systemic issues the company with privacy and data use. this is not just about app developer access but about the checks and balances in place more probably at facebook. joe: there's another constituency that is important and that is that internal constituency of facebook employees. as you reported earlier in the week, more out at facebook is the lowest since donald trump more at facebook is at its lowest. how much work is mark zuckerberg need to do to still get people feeling better? i continued my conversations with employees and they are disappointed and feel whohough mark zuckerberg, has been historically convincing in explaining why facebook is good for the world and why all these people working at the company are doing something that is going to help society -- they

feel he is falling away from that and become more defensive and more reactionary the things that go on instead of thinking proactively about facebook's growing role in the world, and how critical their platform is and not just issues like communication with friends and family -- but democracy and politics and thinks you can take lightly. scarlet: encapsulated with facebook's response to this crisis. what we know about how facebook users are responding? facebook'sng to take attention, or help advertisers are responding to the crisis? do we get a sense if users are deleting facebook and mass and if advertisers are pushing back? sarah: advertisers go where people go, and facebook is fine as far as advertisers are

concerned but there is concern about the #delete facebook campaign we have seen cropped up on twitter and elsewhere. even brian astin, the cofounder that facebook required for 22 billion in 2014 -- he used the #earlier this week which is surprising to people watching this week. we see former facebook employees the flapping end-users are telling me they are over it and this is a company that is just spotting to crisis as it comes up. you're not sure if this was a reported by the news organizations whether they would have ever known of facebook but have proactively told them. that is a long-term concern. there are people who are not paying attention to the news and using facebook just like they have every other day. julia: what is the alternative? [laughter] sarah: the most popular

alternative is instagram. [laughter] julia: exactly. they have cornered the market. sarah frier, thank you for your perspective. scarlet: it is time for the business flash. dropbox is setting up for ipos and the filesharing company has brought in its price range and is marketing. between $18 and $20 a piece raises the potential market value by 10% to more than $7.8 billion. about sevenased hundred $20 million and the share price after the close today the stock begins trading tomorrow. opening statements began today as the doj makes its case against at&t's takeover of time warner. ceos of the companies were at weston court -- washington court

and they say the deal is the site to great a powerhouse to compete with the likes of amazon and netflix. the doj says it will lead to higher prices. that is your business flash update. joe: coming up, what you need to know. this is bloomberg. ♪

scarlet: a selloff in u.s. stocks accelerated the afternoon and this is the biggest decline in six weeks, people wondering if -- and don't miss the potential government shutdown that looms as congress tries the past the 1.3 trillion dollars spending bill for tomorrow's deadline. joe: and economic data comes out at 8:30 a.m. eastern time at 10 a.m. wille: and dropbox officially begin trading on the nasdaq tomorrow so stay tuned for that and all the details. joe: have a great evening.

ma rk mark c.: john dowd, president trump's lead lawyer in the rush investigation, has resigned -- russia investigation, has

resigned. dowd says he, quote, "loves the president and wishes him well." dowd reportedly clashed with mr. trump over legal strategy. democrats on the house judiciary warning the president to not shut down the special counsel investigation into retro meddling -- russian meddling in the 2016 election. >> so much of what the president says is simply factually incorrect. these tantrums are more than merely the online musings of a passionate viewer of fox news. these statements are threats from the president of the united states against our rule of law. : the house has passed $1.32 trillion spending bill -- $1.3 trillion spending bill. it has been sent to the senate, which is expected to act tomorrow.