never agent penniening of a former russian spy and his daughter in the u.k. he says russia has underestimated the unity of nato. >> the way we have responded, the unity we have shown, both when it comes to implementing the biggest response since the cold war, but also with higher -- of forces and with the fact that throughout the years, we're reducing defense investments, not de-- increasing them. i don't think russia expected that. >> on monday, more than countries announced they were expelling a total of more than 130 russian diplomats, including 670 kicked out by the united states. the u.s. ambassador to the united nations, nikki haley says the security council "should be ashamed that deaths and suffering have continuesed in syria despite a february 24

cease-fire resolution. ." it accused russia of using knee veto power to stop member nations from doing more. >> russia will stop at nothing to use its permanent seat on this counsel to -- council to shield assad from criticism. too many members of this council wanted to wait on the cease-fire. >> israeli media reporting that prepare benjamin netanyahu had been rushed to the hospital with a high fever and was also coughing because of the strep throat complication. netanyahu, his wife, and son were questioned monday by zreely police in a corruption case involving the country's telecom giant. it was the second time that

netanyahu has been questioned in that case. russian president vladimir putin today visited a memorial and laid flowers for the victims of a fire in a multi-story shopping city -- center in a siberian city. thousands demanded a full probe following the weekend blaze that killed at least 64 people, many of them children. protesters are disputing the official death toll, saying authorities are hiding the real scale of the disaster. eyewitness have said fire aurms were celebrity and many doors at the mall were locked. your news, 24 hours a day. powered by 2,700 journalists and analysts in over 120 countries. this is bloomberg. >> live from bloomberg world

headquarters in new york. i'm lisa. julia is on assignment. >> i'm scarlet and i'm joe. >> we are 30 minutes from the close of trading here in the u.s. weakness and tex dragging stocks into the red. the nasdaq accelerating declines past 3% whereas the s&p 500 is down by nearly -- miriam 2%. >> but the question is -- > facebook c.e.o. mark zuckerberg is said to be expected to testify on capitol hill and double trouble for tech stocks. shares falling to their lowest in almost a year on trailing expectations and regulatory scrutiny. the fallout from uber's fatal crash expanding to nvidia. the chip maker temporarily suspending its chip testing. >> a whip saw session as

investors continue to assess the threat of a trade spat with china. with us now to discuss is quad group chief strategist pete peter borish. thank you so much for being with us. >> the great thing about being a strangist is i told everybody now that they should sell this morning. >> i'm just kidding in a bear market which, until the january 26 -- highs are taken out i think you have to give the benefit of the doubt to that being the hype. there's a lot of volatility. and the biggest rallies always come in bear markets. i was saying that to everyone yesterday. yesterday was the third largest point increase in dow history. the two others were in august of 2008. those were not a great time to be buying stocks. the markets phenomenonned through in the morning. europe closed and then sold off

and now we're playing in world of roulette spinning so yao flowl we're going to go into japan. it's going to be weak so people are going to be concerned about that. we talked about the dax. relatively speaking its bounce has been weak. the dow hack week. market uncertainty, which leads to volatility. >> we've had these volatility spikes and selloffs every once in a while throughout the post-crisis period. by the dip, it's always worked. basically. is there any really -- real reason to think that this time the fundamentals are such that it wouldn't make sense, it's down so start buying? >> the short answer is absolutely. the more sophisticated answer is buying the dip works until the one time where it doesn't and then you're out of business. >> how do you know which time it

is? >> you have to maintain your risk management. the worst thing to you can have that bull market is risk management because you get punished for being disciplined. but this is a business of longevity. you have to follow your discipline. i think the whole scenario has changed because we're in an incredibly loosening monotroy situation. we've been tightening. there's been 10 tightenings since december 15 but the treasury only up six basis points. that's a sign of economic weakness, not strength. >> we were looking at each other and shaking our heads saying this is exhaustion. this will drain you, this price action where we surge and come back down and it's always the final hour of trading. who likes this? what kind of opportunity does this present for people? >> i always like to say in a bear market, even the bears loose money because there's a

lack of liquid can i. -- liquidity. you have days like yesterday where you get whipped around. just in the few minutes since we've been on the arab and the dow has moved 150 points is that nobody really makes money. there's always the outlier. someone is doing well, someone is doing poorly. ut in general, if you like the volatility, but you need two, three, four day in a row of successful.o be >> and somebody wants to reduce in tesla or facebook or anything, they sell a broad index fund that sells everything. could that be playing a part? >> everything works vir thousandsly on the way up. when they unwind it gets more dangerous and more punishing.

people enter the theater at different three times times and when the show is over, they all want to leave. the higher the price of the stock, the pigger the way. now people have to sell more of that and the lesser stocks in the e.t.f. are also going to be sold. >> we've been talking about a stories lately. facebook, tesla. uber. tesla, there was a crash and talk about mold three sales. which way does the correlation run? is it that these stories emerge and people rethink things or do we just talk more about it and the stocks are going down? >> i'm going to say this use a basketball analogy and the hot hand fallacy. if you're math mat cal and the guy's on the court making a lot

f shots, you say give me more. history says if you look at government technology markets, ou saw i.b.m. in 1969. microsoft and explorer near the top. this is an indication that the hot hand with technology stocks is getting colder. >> you can see the different sectors and how they've moved. this is over a 12-week period. technology had been in the leading category, weakened and then it's whipped back into the leading category again. i just doubled the timetable to 24. interesting. because everything is in circles. there's no real trend. you had mentioned you need a few days in a row of a trend to

really be able to make money. how long can this sustain itself, this whipping around action where you don't have a sustainable trend? >> when i was on the phone last week we said -- expansion equals price expansion. we've had volatility with no real directional change. nasdaq hit highs as recently as a few weeks ago. as we move away from that, we'll have directional movement as we had a lot of directional movement to the upside, now we think it will be more likely to the downside as we contract. >> i'm looking at the gap between two-year and 10-year treasury yields. narrowing back near the lowest since 2007 despite the rally yesterday in u.s. stock. how much of a stock investors do you care, does this dictate the performance in u.s. equities

being poor? >> again, it depends what indicators you tend to favor or not. the beauty of stock and data, there's a lot of it and we tend to look amount the shape of the -- which is a good indicator of where we think the economy is headed, which indicates a little slower group. this is an indication of the market is going to be weaker han people expect. >> how many stock do you put in yesterday's rise? >> i love, you buy the first dip, sell the second. but i didn't say everybody screaming on the air, buy it. it's at the 200-day average. it's ooh, after the fact, it bounced off the 200-day average. thanks goodness. >> going forward, what are you going to be advising your

clients at this point? >> it's going to be a bumpy ride. there's no question. i've said repeatedly since the election, you may have a -- may not have liked. i'm a democrat that believes in markets. you may not have liked president obama's policies but you knew where you stood. there's no uncertainty now. e had munchin on sunday saying one thing, somebody else saying another. someone saying something about facebook. you don't flow where you stand. hat all takes some liquidity out of marketplace. >> this whole idea that the white house uncertainty -- we had a whole year's worth of the conversations that way. >> i'm going to argue -- just as when the market bottomed in march of 2009 and it went up, nobody wanted to give president obama credit. it was just way oversold.

it had a rally so now i'm going to say after the fact, because i'm really good at that, the trump rally was that they were living off the fat of obama and fat burns out. plus you've had tremendous human capital turnover. human capital in any organization is important. >> all right, so tubs economy isn't as good as it may look. when are we going to get the next recession? >> ooh, you trying to pin me onto a date? >> yes, please. >> i'm going to say they're going to look amount the fourth quarter of this year,, first quarter of next year as the start of it. >> wow. >> because history, if you look at history -- again, after the kennedy tax cuts, the reagan tax cuts, the bush tax cuts, the markets were all extremely volatile to negative in the years following because there's a lot uncertainty associated with those policy changes. plus you could sell because tax

rates are lower. >> interesting. quad group chief analyst peter borish. thank you for joining us. coming up next, we're going to talk about one of the tech stocks that's plunging, nvidia. we've got more on what's driving it lower. this is bloomberg. ♪

>> we have u.s. stocks revisiting their session lows so once again, i believe in is what, for the fourth straight day, third straight day you have indexes moving to their highs or their lows in the last half-hour, hour of trading. things accelerate as we barrel towards a close. in this case we're revisiting the lows.

the nasdaq off by 3.3%. clearly tech is the leader to the down side. the dow industrials faring the best. lower. ut of the top 30 general electric, verizon, coca-cola and nike. you are looking at eight out of the 11 down with tech and financials and utilities the exception there. i guff that g.e. always moves exactly the opposite to everyone else. >> yeah, right. our stock of or the hour. it's one that's moving to the down side. nvidia. shares of the chip maker falling sharply, off by 9.%. the company trailer issue espned its awe tom mouse driving efforts. nvidia rolled with graphics chips.

auto thousands vehicles. yes, they really that have their hands in pretty much everything. nvidia might be this week's facebook moment, the trigger -- trigger for the selloff. this is what we have in blue. the dow for much of the day higher. in yellow, the nasdaq 100 in white, nvidia and when the headline came out about trailer suspending its autonomous driving program, we see declines, decline. the nasdaq 100 also having its worst wo day since february. >> this was a pillar of the tech rally over the last year. >> yes. >> talking about amazon and facebook but this one has been extraordinary. >> i absolutely agree. from a momentum standard and also they were beating, beat, outperforming, the data center, gaming doing so well.

that's a good point. the fact you all of a sudden have this big company that has been doing so well on fire tumble like this. >> why sit tumble? >> it's interesting. we have this headline about the company suspending that autonomous driving program. we're talking about how they have their hands in everything. this is a look at their end users. we see up -- up here, this is gaming at 57%. data centers, 20% and down in red, that's automotive. that's just a sliver of it. so it's a headline risk ready -- really. plus, always reaching and extending to be involved in everything. they're looking for the next source of growth. >> and it's almost like investors are looking for a eason to sell when something even -- >> there's a catalyst and a narrative. thank you so much.

letsa, we're complicit in that decline. >> 100%. >> stocks selling off on the heels of yesterday's rally which was for the dow third biggest on record but a lot of that is reversing but the dow -- dow off by 451 points. the losses gaining momentum. and vom is higher as well. trading in the dow up 40% from the 20-day average. trade in the sm up 12%. nasdaq up 1.5% from the 20-day average. from new york, this is bloomberg. ♪

>> we're back and sticking with the market sell off. joining us is the jones trading institutional services chief markets strategist joining us from stan ford -- stamford,

connecticut. the final 10 minutes, 30 minutes or hour kind of makes the day here. what is driving this last built of selling or in yesterday's case, buying? >> obviously yesterday it was a nice bounce after the market kind of sustained the facebook weakness early on in the day. i think people felt a little better about a dip in the technology gains and we've been key market leadership. microsoft, apple, facebook, google. amazon. today what you're seeing is, i think we're seeing people take profit and i think we're seeing quarter-end, month-end rotation and profit taking because there have been so many issues with privacy and so many of these companies rely upon privacy as part of their business model. they've had a great run the past

several years. they even had a strong quarter starting january until the last couple of month, two months and i think people are trying to clear the decks and set themselves up for q-2. >> is this the end of the tech high performance? >> that's a really tough call. obviously tech is a key part of this mark. if this is an indication, it means this market is going to have a touch, tough time going forward. again, these gauges over the last couple of years, the leadership now and this handful of names and they're going to go influence a consolidation period, it's going to be a big problem for tech so it wouldn't be surprising if this is the end of the big performance period. > are you going to recommend clients buy that or what should

they buy? >> it's more about -- i think there's a lot of risk -- asset prices are high, whether they're stocks or bond and i think with all the structural change in the environment where financial conditions are getting tighter. more treasury issuance -- >> hold on. there is more terrorry issuance and yet 10-year treasury yields are falling substantially today. how does that fall into what you're saying? >> that's obviously a risk-off move where people are concerned about the equity market so for the time being they're going to go to the treasury market to be defensive. but once the equity market stabilizes, i would fully expect the treasury market to sell off again. >> is anyone paying attention to economic data or the fed and

what it says in this kind of economic environment when the selling kind of fields off insist >> you know what, in the very short term, no. of course over the long term, yes. and the fed has been pretty steady with their message that they're going to continue the normalization process, that going forward, the economic data that we've seen, they see themselves remaining on course to tighten. that's what i'm talking about coming into this year. things are very different in 2018. there's been a structural shift in the environment as opposed to what had been going on for the previous five years and that's what the market is adjusting to. low volatility environment, people felt comfortable buying the dip, buying equities and now it's elevated and people want to have more cushion and safety net before they step in and buy.

>> michael o'rourke, thank you so much for joining us with your take on the selloff. we're four minutes away from the close. stocks are lower. this is bloomberg ♪ ♪

♪

scarlet: stocks lower, a little off session lows, but still the nasdaq down nearly 3%, whipping back from the gains we saw yesterday. a volatile day. 10 year yields declining as the risk off rally continues there. ina: i am lisa abramowicz, for julia chatterley. scarlet: i am scarlet fu. joe: i am joe weisenthal. if you are tuning in live on twitter, we want to welcome you to closing bell coverage, every weekday from 4:00 to 5:00 eastern. scarlet: yet another day where stocks accelerated moves into the close. today to the downside, yesterday was to the upside. joe: it is absolutely whiplash. i wish we had a clean direction so we could have simple stories, but everyday we have to change the narrative. scarlet: although we are getting an interesting insight into the fundamentals of the market, who the sellers might be, how much

things move in tandem, how volatile money really is. lisa: last week was a pretty clear narrative, down in equities. yesterday we had a roaring comeback, where the dow made its biggest one-day gain, third biggest one-day gain ever, and a huge advance. and today we are giving some of that back once again. the nasdaq falling the most, 2.9%. clearly this is a tech-led decline. a bunch of names really dragging the indexes lower. looking at the imap on bloomberg, which highlights the spots in red versus green. technology the worst performer, off 2.9%, a big slice of the market, the biggest component of the market here. financials off 2.1%. everyone talks about the handoff rom -- from growth to value. we have not seen that yet. joe: a little buying of the bond proxies and safety stocks, but

basically no place to hide. scarlet: a couple individual names. we want to highlight certainly nvidia, down 7.8%, our stock of the hour. involved in so many things, whether it is graphics chips for video games, for mining bitcoin, and now apparently for autonomous vehicles as well. it is suspending its self driving car testing. not involved much, but still enough to drive people out of the shares. this is a stock that had done so incredibly well over the last year. it is not surprising to see some people taking money off the table there. under pressure because it is facing its second investigation by the ntsb off of trailing expectations when it comes to the model three sedan, whether it will reach production targets. this has been a consistent theme for tesla. when the sentiment has turned on it. joe: not like any of this is that new, except the sentiment has clearly turned on the stock, and suddenly we have investigations, concerns about the pace of production getting

higher. lisa: this matters because tesla bonds are also selling automatically, and tesla has survived on borrowed time. if they are unable to do that going forward, that will be a problem. scarlet: microsoft we included, because believe it or not it is the worst performer in the dow, off 4.6%. it was a gain or through the tech rally, and microsoft getting punished a bit. general electric's, the outlier, as always. lisa laughing here because there's speculation warren buffett will buy a stake in the company. we don't know if that's the case, but good enough to lift the stock by 4%. clearly this is a value play here for some distressed investors. lisa: today was really -- joe? joe: let's take a look at the bond market. as we can see, today we finally got that intense long-end buying that has eluded us through much

of the market volatility. in early february, the theme of the market was selling stocks and treasuries. then during the come back, we saw the opposite, earlier in the week, last week we didn't get a whole lot of treasury buying. today we finally got it. no change at the short end, cut 10 year yield down to 2.78%, really falling out of the bottom of the recent range. 3% seems like a long way away right now. scarlet: today is really a stock day, a bit of a bonds day. currencies not as interesting, euro losing a little against the dollar. the pound also losing a bit against the dollar, and dollar spot gaining a bit. take a look at canadian loonie, we can see it was higher on the day. trade tensions easing, and not so much as the risk-off energy continued. lisa: finally -- joe: finally let's take a look at commodities. it is a stock story. lisa: 100%. joe: it is not really that

dramatic on the commodities front. oil down about 1%, just under $65 a barrel on west texas intermediate. and a bit of selling in gold, but not much. scarlet: our guest was reminding us, looking ahead you want to keep an eye on oil. joe: and those are today's market minutes. scarlet: for more on today's market action, let's bring in joins us now who from boston. thank you so much for joining us today. give us your read on what is happening right now. are you buying or selling? jim: i have been trimming risk, taking down equity exposure, and here is why. we saw this today again. people said this was a flight to quality, but it really wasn't. fields, the 10 year treasury yield was falling while the dow was up 200 earlier today. the bond market has been sending a signal to be cautious. the long end came down in yields and up in price pretty dramatically at the end of the day, but it was already

happening when the market was up. bond markets telling us, something is happening here. lisa: so if the bond market is right, when are we going to see a recession or a downturn or something that materially will affect the fundamentals of these companies in your perspective? think it is coming, but not in 2018. you also need to see profit share gdp decline. taking all the profits from law firms, pizza parlors, all the way to apple and google, dividing into gdp. it has been at record levels and started to come off last year, now flatlining. we will see where it is. those numbers are coming down soon. if that started going down and the fed continues to raise rates, those are two elements of recession, and it means maybe you have a year left before that occurs. joe: the data look pretty good. we have not seen anything in the numbers, the real-time indicators that are weak. the latest round of regional fed manufacturing surveys show capex

intentions. is there anything you see that says, this is something to be nervous about? james: yeah. let's take a look at smaller mid-cap companies. their earnings have not been as spectacular as the s&p. you need these companies to broaden out and links and the cycle.- lengthen the we are getting close to the longest cycle ever today. the performance of the ruffle today, compared to the s&p. compared to earnings in the fourth quarter, it was not following through. you need that, and we are not getting that. just the multinationals that are really leading us. scarlet: one thing that is interesting in your notes, you cite libor and ois and the spread there as an indicator showing stress. so many have told us that is linked to the tax overhaul, to these other external factors, structural issues that have less to do with what is actually going on in the market, that we cannot rely on it as a gauge the

way we did in the li na -- lead up to 2008. wide you see this as a stress source? james: it is a source of stress because it is raising the funding cost for these banks, and that's putting pressure on the banks. that will ripple through to the credit market. we have not seen that yet, but i think that's the next step. even if the initial cause is technical, this is pretty widespread, pretty persistent, and the rise in libor is a big percentage rise. i think it begins to symptomatically tell you that credit is slowly draining from the system, the excess liquidity we have had for the last 10 years is starting to drain out of the system, and that's what has these markets worried, particularly risk assets. lisa: what would you have to see that would make you change your view and become bullish on u.s. equities? bullish ifuld become i were convinced that labor costs and oil and intentions were all under control. i think just the opposite is

happening. i think labor costs are starting to rise. and i think the fed is dead set on two more rate increases this year, maybe three. and all the things that gave us per free cash flow margin dollar put into the market this whole cycle are now working against us. globalization of labor, high unit labor cost, all those things are starting to erode that profit margin. if those reverse, if labor costs do not go up, i would feel better about stocks. lisa: james swanson, chief strategist for mfs, thank you so much for us. scarlet: breaking news crossing the terminal. it is still earnings season, believe it or not. lululemon has reported results for the fourth quarter, adjusted eps of $1.33, beating the estimate of $1.27. total, fourth-quarter total sales, excluding fx, up 42%. i must be looking at something

different here. that probably is not the comparable number. nevertheless, looking through this results again, adjusted eps higher-than-expected, and the stock is gaining, 6.2% in after-hours trading. what it comes down to here is what it says about management. they don't even have a ceo right now. they are on the search for a new one. the former ceo steps down, and they have been on the prowl for an external candidate. lisa: lululemon sees total earnings per share for the full year of 2018 between three dollars and $3.08. the consensus was $3.02. it could still be on the lower end, so giving itself a lot of wiggle room as it sort of faces the death of the athleisure trend. joe: is it dying? scarlet: it was supposed to be dying, and then came back. fourth-quarter total comparable that was fx, of 12%, my mistake, versus the estimate

of 8.6%. beating analyst estimates. lisa: coming up, mark zuckerberg has decided he's the right person to appear before lawmakers. what we can expect from the facebook ceo's testimony. we explore that next. this is bloomberg. ♪

mark: i am mark crumpton with first word news. president trump's expected to meet next month with japanese prime minister shinzo abe. the meeting reportedly will take place on april 18, coming ahead of a potential meeting between the president and north korea's kim jong-un, who is believed to have visited beijing this week ahead of the meeting with the u.s. the unconfirmed trip is said to be can -- kim's first outside

the korean peninsula since he took power in 2011. iraq's prime minister has ordered his country's military to take full control of its borders because of escalating tensions and threat of a turkish incursion into iraq. he said that this will prevent foreign fighters from using iraq for cross borders attacks into turkey. the turkish prime minister announced operations into northern iraq to clear the area of kurdish fighters. house democrats are pressing the white house to provide results from the inquiry into more than $500 million of loans made last year by two companies to jared kushner's family firm. elijah cummings and raja letter torthi sent a the white house asking for any documents linked to the investigation.

after years of pushback, the nba is getting increasingly on board with sports betting and wants a cut when it is legalized in states across the country. nba commissioner adam silver spoke today at the bloomberg sports business summit here in new york. >> we know there's an enormous amount of underground sports betting going on, measured in the hundreds of billions of dollars in the united states alone. from an integrity standpoint and a regulatory standpoint, and also to strengthen federal jurisdiction and raise tax. it should be a regulated industry, so we are engaged in the discussion state-by-state right now. mark: global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. " --let: "what'd you miss mr. zuckerberg goes to washington. the facebook founder and ceo said he would be willing to testify, if he was the right person. >> what we tried to do is send

the person who will have the most knowledge about what congress is trying to learn. so if that is me, i am happy to go. what i think we found so far, typically there are people whose whole job is focused on an area, but i would imagine at some point there will be a topic where i am the sole authority, and it would make sense for me to do it. scarlet: after lawmakers across the isle have insisted he is the right person, mark zuckerberg is said to have come to terms with the fact he will need to face congress. he's expected to appear before the house energy and commerce committee in april. joining us with more -- sarah, let me start with you. who does mark zuckerberg think would be in a better position to answer questions about facebook and data privacy issues than him? sent in november, facebook its chief counsel to speak to congress. in this case, it is a reckoning

for the entire company over their data policies, going back years, which has really caused a lot of breach of trust broadly with facebook. so zuckerberg is of course the person everyone wants to hear from as they are trying to get these answers that really help us navigate what needs to be done with the company as a whole. scarlet: eric, facebook shares closed the day down nearly 5% on this news. i am just wondering, what do you think congress members are going to focus on with mark zuckerberg, and why is this being treated as such bad news for the company? eric: i think it is finally a moment where faced feels like -- facebook feels like it is being held accountable. the government is stepping in, asking questions. i think there's been sort of a really bad news cycle for facebook, around how open and accurate they were about their role in the election. this latest bout of news has

really pushed things over the edge, and has, you know, brought a lot of attention on them. i don't think it is any one thing about the cambridge analytica scandal necessarily, but it is this accumulation of facebook understating and sort of obfuscating about its role around the election. joe: mark zuckerberg has gotten better at speaking in public. i remember him back in 2011, wearing the hoodie and all that stuff, those nervous interviews. but no one looks good talking in front of congress, do they? he's probably going to be made to look pretty silly. sarah: congress will be asking questions that make them look like they are really hard on the company. and zuckerberg historically has not done well in those kind of interrogation situations, where he doesn't really get people to understand how he thinks about

facebook, as a platform that does good work in the world broadly, so he comes across as trying to correct them on assumptions about facebook, tries to explain that, on the whole, facebook has a good effect on society. he will end up looking really defensive. so they have to be talking at facebook headquarters now about what kind of attacking -- a tack he needs to take. does he just need to go and grovel, say we were so wrong about this? how far does he go in trying to promise how facebook will do better next time. scarlet: mark zuckerberg has many days of preparation in front of him. let's turn to nvidia, shares tumbling as much as 7.7% today. a lot of concerns now about self driving car testing. it's going to temporarily suspend self driving testing. it comes in the wake of an uber car that killed a pedestrian earlier this month.

talk to us about the connection between nvidia and hoover. -- uber. eric: lots of questions about whose parts played a role in what in this accident. we don't have a lot of visibility into that at the moment area -- the moment. uber is not saying much, cooperating with investigators. a lot of companies are trying to isolate uber and say, this would not have happened with our technology. this is an uber specific problem. there's questions right now, how uber specific it was, so we see different government agencies closing off self driving. arizona asked uber to stop operating. i think there are a lot of questions about what specific technology caused the problem in this uber pedestrian crash. scarlet: and on a day like this, questions means sell.

eric and sara, thank you to you both. coming up, for apple children are the future. the company looks to education. we discuss that next. from new york, this is bloomberg. ♪

lisa: "what'd you miss" -- apple pitched a refreshed version of its apple ipad tailored for schools in chicago. it comes as they struggled to compete in the education space against google, whose from books and google classroom software are dominant. joining us from the event is mark gurman. i am thinking of the chrome book on my desk at home that my son is tied to.

$300, do price point, you think apple is competitive with google chrome books, which have a much lower price point? mark: i mean, absolutely, they have always been competitive, or i should say for the last year or so they have been competitive with chrome books, in terms of the $300 price point. this is a price point that already existed in apple's product line up a year ago. but they did not make a big splash about it like today. they had us all come to chicago to see it in action in schools. they are taking the product from last year, updating with a faster processor, support for the apple pencil, and a bunch of new software, wrapping around his education focus. scarlet: so apple is loaded with cash. are they donating anything to any of these schools? will this be discounted for them. mark: there was no announcement today about donating ipads or anything like that. perhaps in the future, something with the chicago public school system.

this is something they tried at one point, an ipad partnership in los angeles unified school district, but that deal fell apart in regard to the software for curriculums from pearson to be preloaded on the ipads. now apple says they will do their own curriculums, announcing one today around augmented reality. joe: when it comes to making headway in the education market, i have to imagine the sales channel looks very different than what apple is used to, that there's all caps of politics, negotiation involved. how much of a challenge is for apple on the technical side get in the right product, and how much is it building relationships with school districts that would say, ok we want to use the apple suite of product? mark: there's a couple ways for apple to get ipads into schools. one is through bulk purchasing. they used to have other deals back in the day with macbooks and such to buy them in bulk, and now they are doing that with the ipad, which is a good idea. students can also buy themselves

from the apple education store. also the negotiation element to that, which comes down to if they want to do one-to-one deals with schools. they haven't really announced a widespread one since the kelly one fell apart a. -- l.a. one fell apart a few years ago. scarlet: most goals have already committed to cram books, and/or to have -- chromebooks, and arty have the inventory -- already have the inventory. you have to convince schools to drop what they have now and buy into something else. history does that without a lot of thought and debate. lisa: and realistically the technology is not that advanced. all you have to have is communication with the teacher, calendar with your homework, and access to pdfs, wordprocessing and you are done. joe: these are the things you guys know about. we are not there yet. scarlet: huawei has unveiled an iphone x challenger, which i

find interesting because no one in the u.s. can get a huawei phone. mark: this is the huawei p20 pro. it's an iphone x challenger because of the design. the camera on the back looks on most identical, and in the front the screen has the cut out, pretty much copied by this new phone. the u.s. is a premium phone market, where premium phones are mostly salt. not being in the u.s. selling a premium phone is a challenge for huawei, but they are the third-largest smartphone manufacturer globally, including the u.s. and other countries around the world, so this will help their sales hopefully for them in other regions. scarlet: in europe, africa, asia, but not the u.s.. mark gurman, thank you so much for joining us from chicago, where apple health -- held its school event today. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. mark: i am mark crumpton with first word news. the u.s. ambassador to the united nations, nikki haley, says the security council "should be ashamed that bombing deaths and suffering have continued in syria despite a february 24 cease-fire resolution." this is after haley also accused russia of preventing member nations from doing more. >> russia will stop at nothing to use its permanent seat on this counsel to shield its ally, shar al-assad, from even the faintest criticism. and we cannot take these actions, because instead of calling out how assad, russia and iran made a mockery of our calls for a cease-fire, too many

members of this counsel wanted to wait. mark: a spokesman for the israeli prime minister's office confirmed benjamin netanyahu was rushed to a hospital today with a high fever. one correspondent says netanyahu was also coughing because of a strep throat complication. netanyahu, his wife and son were questioned monday by israeli police in a corruption case involving the country's telecom giant. it was the second time netanyahu has been questioned in the case. two months after prosecutors dropped corruption charges against him, new jersey democratic senator robert menendez is seeking a third term. he will kick off his reelection bid wednesday with events in his hometown of union city, and in southern new jersey. menendez was charged in 2015 with trading political favors for gifts. his trial ended in a hung jury, and prosecutors decided against a retrial. he still faces a senate ethics

investigation. a houthi military leader in yemen says the recent barrage of ballistic missiles fired into saudi arabia was a political message to the kingdom and its allies. he denies the missiles were manufactured in iran. shiite rebels targeted saudi arabia on the third anniversary of the war in yemen, with fragments of one missile over riyadh killing one person and wounding two others. the launch was reportedly used to indicate houthi forces were far from depleted after three years of fighting. global news powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap of today's market action. in equities, to the downside. the selloff in tech shares dragging the nasdaq lower 2.9%. the dow losing 345 points, one day after placing -- posting its

third-best point gain on record. the volatility continues. joe: one thing that did not selloff was treasuries. unlike in the volatility in february, we actually saw a pretty sharp bid into treasuries, 10-year yields tumbling seven basis points. let's bring in brian chappatta. different vibe from the recent selling. brian: really different. there was a big stock selloff, then the comeback, but today felt different. critical yield level, 2.8%, broke, and that was one of the last straw for a lot of these people who are traditionally risk off investors. so we have seen up, down, and finally just like, time to go in and buy, cover shorts at the very least. recordair that with amounts of u.s. treasuries sold this week as the u.s. seeks to plug its deficit. people said supply would overwhelm things and cause

yields to rise even in risk off times. is this sort of a tipping point, showing that doesn't work? brian: it might be. you look at the auction today. by all accounts it was fair. the five-year came in right about where it was supposed to. average demand all across the board. all of a sudden, afterwards past 1:00 p.m., you start this tremendous rally. it goes to show, stocks and bonds are, they are correlated, you are not going to have -- lisa: sometimes. brian: you will not have 10 year yields stay in a range forever. trade the range, good friday early market close. joe: is that a classic thing, trading the treasury range into good friday? brian: i don't know about good friday. but early february, there was a big correction in the dow. since then, 10 year yields in the 15-20 basis point range. joe: when we saw the simultaneous selling in february, the explanation was because of the changing macro backdrop, the fact the fed, if

anything, was more concerned about inflation. so you have a situation in which the risky scenario is bad for both asset classes. people you talked to today, what did they say about why people were comfortable coming back? brian: if you look at the front end of the market, is also a ton of action today. even earlier than the selloff in the 10-year and the 30 year. you saw pricing for fed hikes go down below two for the rest of the year, where people were talking four. you look at the overnight index swaps, and you are down to maybe 45 basis points, tightening for the rest of the year, which implies fewer than two hikes. certainly raised questions about the fed, the pace of things, and inflation. who knows where it's going to be. starting to raise questions, is this deja vu from last year when yields also peaked in march? feels a little deja vu every time we say the bond bear market is over, and the not quite so fast. talk a little about positioning.

you mentioned a rush of short covering. how short are investors on treasuries? brian: in the 10 year space, the net short is close to one year highs. there are a lot of people betting yields are going up. there's always been a short position for a long time, so the question will be, are these going to start to fade back, as these technical levels are broken? lisa: when you talk to traders and investors, what is their explanation for the shift in sentiment to downgrade the potential rate hikes, the fight back into treasuries? brian: i think it is really just capitulating to the volatility we have seen, you know. headlines about trade wars, emergency powers coming into play. between that and the tech selloff, there's all this drama unfolding in markets, and treasuries are the classic risk off trade, and people are really just finally they, you know what, we don't see any reason to

expect yields over 3% anytime soon. scarlet: are equities the drivers for treasury price action? brian: it seems that way, at least for today. who knows what tomorrow will bring. but it has been soft. fangp 500 declining, stocks, driving supplement into the close. joe: thank you very much for joining us. scarlet: coming up, the saudi crown prince continues to tour across the u.s., but will it be enough to convince american companies? we have that angle covered for you next. this is bloomberg. ♪

" --let: "what'd you miss the saudi crown prince mohammad bin salman continued his time

offensive, with google signing a deal with aramco to establish a national cloud provider. the crown prince keep an eye on tech deals, in hopes of diversifying his country's economy, but will his pitch be enough? for more, we welcome th co-chief -- the co-chief investment officer at capricorn from london. what is your impression of the charm offensive we have seen so far? >> thanks for having me on again. i think that it is what saudi arabia needs, to diversify its economy. the crown prince has been assertive in a's, willing to encourage foreign capital and skills into the country. i don't think any of the promises he has made in terms of reform have proven false. saudi arabia is going into the world that none of us saudi watchers would have even imagined a few years ago. joe: when we think about a country evolving its economy, on

the tech side, we think of ground-up, organic, innovation taking root, not the leader of the country going around and making deals. is there just no other way it can be in saudi arabia? that it has to be this approach, very high-profile public announcements of companies making investments in the country? emad: saudi arabia, they always like to have the big announcements, like the big uber investment, things like that. the approach they are taking is an industrial clustering strategy. in petrochemicals, they brought in big foreign alignments, with subsidiary industries around that. things like google cloud providers, infrastructure things within the country itself, the idea is that these clusters, especially with king abdullah science and technology sydney and things like that, will have industries appearing around it. you need that critical mass to have the branching in all these countries. scarlet: and of course, core to

saudi arabia is its energy industry. the crown prince said the ipo of saudi aramco could be delayed until early 2019, pushing back one of his big initiatives. how much does that cause some u.s. companies, investors to question was really going on in saudi arabia, and how committed they are to the pace of reform he has promised? emad: i think you have seen a breakneck pace of reform in just about every single aspect, but aramco, a $130 billion ipo is a huge thing, and it has proven complicated. i think they have to do it, because if they don't, that takes all the steam out of the privatization reform agenda, and they need to have external capital in the country, making it something people can't ignore. i understand q1, q2 of next year, it gets pushed out, but i don't think they can go much beyond that and maintain the

level of doing what they said they would do. scarlet: are you focused at all on buying assets in saudi arabia right now? emad: i am. we have increased exposure to saudi arabia markedly since the end last year, buying the stock market. we think it's incredibly cheap. you get banks at 10, 12 times earnings with 7% dividend yields, in dollars. you don't get that in any other type of country. a bit of a no-brainer. lisa: where have you been reducing allocation to increase allocation to saudi arabia? emad: we have been reducing in russia, for example, some of our turkish exposure, as market volatility kind of improved, increased, sorry. deployed two countries like saudi arabia that are, actually taking over from argentina, this favored uncorrelated, reform oriented bet with more capital coming in. joe: talking uncorrelated,

looking historically, was there a point where it was a pure oil play, and that is something you see visibly breaking down? emad: correlation versus causation. the russian market is incredibly correlated to oil. in saudi arabia, when the price of oil collapsed, it impacted the market because the government could not pay bills in time. that pressure has resolved, they have paid all their bills, everything in the economy is starting to move again. so you don't see much correlation to the oil price, but if there is a shock on the way up or down, that will add feel or suck out a little juice from the markets. foreign ownership is under 1%. the msci, foreign ownership over the next two years will go to 30%, a lot of money that will enter almost regardless of oil prices. joe: you made big calls on oil in the past. what is your outlook for oil right now? emad: i mean, i came on bloomberg at the end of last

year and said average over $70 this year. i still see that. with a little jew political tension, we could go very high -- with a little geopolitical tension, we could go very high, indeed. scarlet: talk a little bit more about your exposure in saudi stocks, as everyone waits for msci, ftse to make it is asian on adding saudi indices. how much is priced in? emad: only part of the amount is priced in. from $2 billion total from foreign investors, but we are still only 1% or 2% of total foreign ownership of the market, 30% average for these markets. when you talk to investors a year ago, they are like, "eh," but now they are getting excited. i came back from a conference in dubai with 10 investors in every saudi company meeting. investors have to get

comfortable, and that's where mohammed bin some ongoing to the u.s., sitting down with people from tech leaders to religious leaders, saying saudi arabia is open for business, is so important. scarlet: it comes full circle. the cio of capricorn fund managers, joining us from london. thank you so much for staying late for us. we have breaking news crossing the bloomberg. we mentioned lululemon beating estimates. the conference call is taking place with investors, and according to the executive chairman, the board is taking their time in selecting a new ceo. lululemon had many candidates come forth for consideration, and they talked with several ceo candidates as well. remember, the former ceo resigned in february. the company said he behaved unprofessionally, did not give any details on that, and they are currently without a ceo. the stock up 6.6% in after-hours trading. coming up, an exclusive conversation with jamie dimon.

plans to make a mark in the playoffs, and his thoughts on recent volatility as well. this is bloomberg. ♪

scarlet: "what'd you miss" -- the second annual bloomberg business of sports summit, where top dealmakers discussed the state of sports business. our editor caught up with york capital founder and milwaukee bucks co-owner jamie dinan for an exclusive interview. they began by discussing what dinan has learned by investing in the bucks. >> most fun investment you can ever imagine, number one. number two, the most frustrating investment. when you are watching the game,

it is close or your team is behind, it is frustrating, in real-time. unlike the markets where i can do something, i really can't do anything, as passive as you are for two and a half hours. but the highest are amazing. the kids to play on the team are great. giannis, he is as genuine as he came across to the nation on sunday night, just a wonderful individual. >> let's talk about him. he has emerged as really a grand. the greek freak. a lot of attention on "60 minutes," a boost in the ratings, the most watched 60 minutes in 10 years. so what do you take away from that in terms of building a brand around a player? jamie: i think the reality is, today where we live in a world where everyone has a voice, itre social media is global,

allows for a milwaukee they seem, a midwestern city, to have a global icon, global brand. this guy is amazing. charismatic. his talent. what he has become is really an international star, based in milwaukee, something that probably could not have happened 15 years ago, maybe even 10 years ago. over half of our downloads on our digital website are coming from outside the united states. that's remarkable. >> if you are working with the gm, the coaches, the team, do you think about these players and their potential brands as you are thinking about building 18? jamie: i think we think much more about their specific talents, where they fit in the mosaic of building a functioning team. teams can have a couple

individuals and not have a team out there and expect to get far. the best teams are very much a team, so we are trying to recognize, these guys know a lot more than we do. sometimes you have to subdue the ego a little bit. you are almost kind of throwing in your chip shots, hoping they resonate and listen, but it is how you make the team better. much financial resources i will be willing to commit. my other two co-owners, mark and wes, we are very committed to putting in the resources for the gm and the coaches to get the best team possible. >> talk briefly about that dynamic among the three of you. now having owned this team for a few seasons, what have you learned about each other, owning a team together? >> what have i learned? ok. they are both great partners, in the sense that everybody is respectful. everybody listens. everybody has their own quirks.

wes, i call him the dreamer. he thinks big, thinks everything is possible. mark is basically the business guide. what is it going to cost? everything is a trade-off. and jamie is a little between mark and wes. i care about financials, but i also want to win. as far as i'm concerned, a really fun dynamic, and we have become closer in the process. >> well, i cannot let you go without asking about the markets, your day job. 2018, we are a few months into maybe a period of increased volatility, which might not be so bad for your business. what do you make of the opportunities out there right now? jamie: there's a lot more volatility, a lot more nervousness. a lot of it is algorithmic, quite frankly, or macro related, but this is creating a lot of opportunity. you can find winners, avoid losers. a lot of what we do is

event-driven. corporate takeovers, restructuring. companies are spending money. they feel flush with the tax benefits. rates are still attractive. new businesses are doing well. a lot of what we take away from there's a loty, of noise but the underlying fund metals are quite good. it is still too early to say this bull market is over. >> so from a bull market perspective, back to basketball, how are you feeling about the rest of the season? jamie: it's going to beat half. we are in thet, bottom half of the playoff great, but everybody is bunched together. we can beat any team in the east. we have a couple players injured from us two months. malcolm, rookie of the year last year, hopefully coming back in a week. we will be a stronger team once the playoffs start.

i think we can beat anybody in the east. scarlet: that was jamie dinan, speaking with jason kelly. lisa: time now for the business flash, a look at the biggest business stories in the news right now. general electric jumped the most in two years on speculation warren buffett could take a stake in the company. buffett recently told the press he might be interested in ge at the right price. berkshire hathaway invested in ge during the 2008 financial crisis, but has since sold most of the stock. scarlet: canada's cannabis company opened a chain of marijuana stores in oregon called talent farms, and black shower capital has signed a letter of intent to franchise the model across north america. the industry, they say, is full of untapped potential, although marijuana remains illegal across much of the u.s.. google could owe oracle $8.8

billion for using java programming code. an appeals code said google's use of java violated oracle's copyright. the case was filed in 2010, and remanded to a federal court in california to determine how much the ultimate unit could pay -- alphabet unit could pay. that is your business flash update. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

" --let: "what'd you miss another big move in stocks, this time to the downside, the dow s&p and nasdaq giving up a chunk of yesterday's gains. don't miss the u.s. fourth-quarter gdp number for tomorrow. lisa: and walgreens reporting second-quarter earnings before the bell. joe: and don't miss this. nobel prize winner paul krugman will join us tomorrow on "what'd you miss." plenty to talk about. he will be on at

mark: you are watching bloomberg technology and your safe check of first world news. u.s. ambassador to the united nations sus the security council aould be ashamed that despite

february 25 cease-fire resolution, violence and suffering continues in syria. >> out best my colleagues to consider whether we are a february 25 cease-fire wrong when we port to forces working alongside assad as being responsible for the slaughter. mark: in the meantime russia's ambassador argued they weren't the only councilmember making concrete steps to implement resolution. massachusetts can join california in a las vegas the trump administration to include a citizenship question on the 2020 census. the democratic secretary of state called the decision and attempt to suppress the account i frighten voters will have large immigrant populations. use of therump's idea of using the military budget to pay for the border wall and you brought up the idea in a meeting last week with speaker paul ryan. russian president vladimir