the discussion came as robert mueller was building cases against the top trump advisors. discussionsat such took place. the european union's transport minister says it is important to keep laws unchanged as they discuss models of aviation. as briggs it is concerned, we need to be clear that there will be no winners in this procedure. we want to make sure that the transport is as disruptive as possible. which means that all the european regulatory rules will steal be valid.

mark: eight groups need $850 million to provide relief for displaced people. the villages and towns can't deal with such tremendous quantity of people with different medical conditions. separate offenses have exacerbated the exits. staff across half russia as the country warned of victims in siberia -- more victims in a fire in siberia. that blazed went through a four-story mall. investigators identified a short circuit as a possible cause. emergency exits were locked shut. global news powered by 2700 journalists and analysts in 120 countries.

lisa: >> we are 30 minutes from the close of trading. swinging between slowed gains and losses. tech stocks are still struggling today. scarlet: president trump saber attling, and focus is on china. breaking down the economics of the trump trade war. the return of volatility brought to you by tech. to a 13 yearasdaq high.

the cat is out of the bag. hosted kimposted -- jong-un. president trump scored his first revised trade deal with south korea. the announcement comes as we await the list of chinese products the administration will impose tariffs on. , paul krugman. they key for joining us. great to have you. can you when a trade war against china? >> it is hard to have winners in trade wars. basically not. if -- whatever trump thinks he is doing, he is not going to win.

he can get something he can claim but no, it is destructive. joe: so far the announcements have been mild and responses have been mild. see istands what do you the economic impact? what kind of risk would you assign this? -- ist we have seen as almost nothing. it is a little bit of noise and saber rattling. that deals with south korea. the stock, the steel tariffs. all of that doesn't matter very much. could spin out of control. everybody likes to blame foreigners for their problems. we do but so does everybody else. scarlet: you have conceded that

china is a bad actor when it comes to global trade. dodgy on intellectual process -- anderty, it increases drives down prices. is taking a tough stance in wina a necessary step to good behavior from them? >> there is a problem. we depend on the system of international rules. we are not going to get any coordinated action on intellectual property, which is the biggest issue. this is just not well targeted. that is not how trump states his goal. i'm struggling to understand the industry president trump is trying to support the most. there is a lot of talk of manufacturing but it is big tech

that stands to benefit the most fairany changes or a playing ground. >> tech, format and hollywood. those are the big industries. , it is not -- intellectual property is not coming from trump. that is coming from people trying to make some sense. maybe there is not any sense. lisa: i'm trying to understand how this plays to his base. just generally cracking down on what people think are unfair practices. >> his message is manufacturing. the rest of us are saying they are bad actors on intellectual property. joe: you mentioned the south korean deal. in the end it is indistinguishable.

does it seem plausible that could be a model for this? whether it is nafta or china? >> that is the happy scenario. there are three ways we have a trade war. trump gets to claim something or other. it is just reality tv. massive tariffs all around. which be across the board. and there could be 30 special interest deals. there are three different possibilities. that third scenario is the least well understood. damagestrade war that the macroeconomy, that ends up .eing small things

what is that? >> people have been asking why does the president have so much authority to unilaterally declare stuff? 80 years agory is congress gave up its ability to write detailed trade legislation. it seated a lot of authority because it could not help itself. writing had congress the details of the tariffs and having to pass line by line new trade agreements, special interests were out of control. that thepresumed president was not going to do that kind of thing. that does not look like a good assumption now. having said that, if you wanted to look at the trade balance of different u.s. cities, there is something to be said.

>> i have been trying to do that. we don't have great balance of payment data. but we have some. we have huge trade imbalances. it is not the ones that you might think. if you think trade balances are a sign of success, if you have a trade deficit on the part of atlanta, atlanta is a fast-growing city. that is money coming from the rest of the united states. new orleans is a big trade surplus because it is shrinking. it is worth looking at that as a way of understanding with international trade balances are about. joe: it is important to understand that the trade balance and the investment surplus are the flipside of the coin. everyone wants to invest their money.

>> long ago i was in a said theion that savings balance were the same thing. he said what am i doing? what is my job. it is true. krugman, nobel prize-winning economist. you are sticking with us. we have more to come including a look at amazon. this is bloomberg. ♪

scarlet: paul kruger, you have written in your blog that

economics is about what people do. what is the incentive for businesses to raise wages? >> you raise wages if you have to get workers. you don't do it if you are a nice guy. you do it because that is what you have to do. usually -- also now, we have a tight labor market. wage increases are modest. we are trying to figure out economic data ain't that great. the labor markets may not be as tight as they look. theory, i havel no real evidence, people remember the great recession. companies are reluctant wages because of

that. nobody really knows. we have no idea how much lower unemployment can go. joe: what should the fed to win the conditions seem to be in place and the only thing missing is that one detail? say, wait until you see the whites of inflation's eyes. they are under pressure. so far inflation is still slightly below their target and their target is too low. be weheir argument would are going to be behind and we need to induce a recession if we wait too long. there is a timing to the rate hikes. >> they might have to slam the brakes and it could be uncomfortable but the danger of tightening too soon is greater.

if a tightened too soon and the economy does slide, then we are set up in a situation where the fed won't have ammunition to fight the next shock that comes. letting inflation go over 2% was ok. lisa: i have been called a yield curve criminal. i want to look at this. some people say not a big deal. supply and demand. but are you suggesting this signal, the federal reserve is making a policy error? >> it might. the market does not see inflation. part of this is mechanical. you have to have an upward slope as long as we are at zero. now up above zero

that goes away. there is some underlying reason because we are away from the liquidity trap you expect that to flatten. but still it does look like the market is less optimistic that normalcy is guaranteed. scarlet: wasn't that fiscal spending and the boost that was going to give us growth? >> it should be. people are saying the headwinds have turned to tailwinds. so far we are not seeing it. never mind fourth quarter last year. we are not saying investment intentions appearing to go all. the stock market is below where it was when the tax cut was passed. maybe not much stimulus out of this. scarlet: tax cut's could be

leading to tax gets cutting wages. how does that work? >> opposing of a company that is a nice guy, for her leadership does want to do nice things but now they are saying if i raise wages that cut's profits. i used to pay that connector taxes. to being ancentive nice guy has gotten stronger. joe: interesting. is there a point -- you gave us -- variousies theories. maybe the labor market is looser. maybe there are just some things residual on the part of corporate managers. does their get to a point where unemployment drops far enough where people have to start thing -- thinking about the models? >> you always have to. in some way, it doesn't matter

at all. .e have evidence if you look at the really extreme cases like the southern european countries that have soaring unemployment inflation came down. there is plenty of evidence that unemployment does in fact -- affect inflation. lisa: how closely are you watching consumer debt loans? student loans, anything dramatic? which is surprising. >> all of that is part of the savings rate being low. the expansion is based on consumers saying spend like there is no tomorrow more or less literally. it is unnerving. these numbers are not as big. it is not like the housing bubble. they are nothing like mortgage debt. but they could see a bump in the road.

nobel prize-winning economist paul krugman is sticking with us. this is bloomberg. ♪

scarlet: 10 minutes away from the close. tech stocks are down. we have been focusing on tech as a sector. , distinguished professor paul krugman. joe: there was a report on ask io's about trump being obsessed with amazon and wanted to go after it. in 2014what you wrote about amazon in relation to that dispute -- don't tell me amazon is giving consumers what they want or it has earned its

position. what matters is if it has too much power. it does and it is abusing power. is, as so often .appens, amazon is a bad actor it has been exerting market power. , he trump has against it thinks it doesn't pay taxes. what he really has against it is the washington post. jeff bezos owns the washington post. there are real issues but not the ones trump is going after. could the u.s. do? obviousrust is the point. there are reasonable antitrust issues. you have to define markets. amazon has a lot of manatt city

-- it is the opposite of monopoly. it is the sole buyer. a lot of content trade runs through amazon. amazon has too much power to push down prices against sellers. a lot of stuff, amazon is a utility. they make money off of their server farms and their cloud. you can imagine all kinds of reasonable things we could do. another gripe that the president has come he talks with real estate guys. talking about how amazon put retailers out of business which means they don't have tenants anymore. that is a factor. the retail industry is hurting as a result of amazon. >> it is. that is valid technological change. to do onlineing shopping whether or not it is amazon.

stores areortar going to play a smaller part in our economy for good reasons. that is not miss behavior. there are plenty of things that are but that is not one of them. joe: there has been a lot of talk about the extraordinary concentration of power. on the left side of the spectrum, interested in antitrust, is there a case for all of these big companies? they have extraordinary power, antitrust could be a useful tool ? quite sure. inre is more concentration tech sectors than there ever was. in amazon or facebook. they are more dominant than u.s. steel was at the worst of its power. they do more harm to the economy. we could have a well calibrated antitrust policy.

lisa: i am trying to imagine how this plays out. one of amazon's advantages and potential liabilities for the rest of us is dad that it has. we saw what happened with facebook. what do you think should be the government response if any to be seeing, to make sure there are no bad actors in the tech sector with spec to data usage, or perhaps disseminating that among others? >> we don't know. are whereink rules you come in. we live in an era where there are lots of ways in which privacy could be invaded by bad actors. ultimately you are going to have to have rules to protect people's privacy. this would be a piece of that. joe: how optimistic democrats are going to retake the house? >> what do i know?

>> you always have a gut feeling. i read nate silver. i say ok, the polling averages on the margin. that are other reasons democratic's could sweep. there does seem to be for the onst time way more energy the center left than on the right. so that means the democrats have the edge. think about virginia. huge wave in virginia. republican still controlling the legislature. >> i knew he would have something to say. this to english professor paul krugman, thank you for joining us. breaking news crossing the bloomberg. uber's executive is leaving the company. his departure coming after the fatal crash in arizona that left

a pedestrian dead. close is set to be next. the selloff did not necessarily accelerate into the close. this is bloomberg. ♪

♪

>> what you miss? red in theo the close. all major averages ended on a red note. it does not pick up steam into the close print the 10 year yields is that 2.77%. julia chatterly is on assignment. scarlet: i am scarlet fu. joe: i am joe weisenthal. want to welcome you to our closing bell coverage every day from 4:00 to 5:00 p.m. scarlet: we begin with our market minutes. technology leading the way. in this case, kind of leading or down.p kind of all over the place really here with the nasdaq off by 0.9%. a mixed bag for the most part. joe: stocks really traveled a long way, i noticed as the. flat on the major

indices. the nasdaq cleaning up a little bit against a. -- again today. scarlet: we did not see stocks fell off into the close. it meandered. in a broad range but it meandered here. let's look at a couple of individual names that moved a bit. tesla off by almost 8%. lisa has been pointing that out quite a bit. but the concerns when it comes to tesla, especially with -- looking into a car that went on fire that erected into fire or a slow burn because there is something in technology that makes it burned rather slowly. to seeless, a lot when it comes out with its update on vehicle deliveries and what it does when it has two get more. amazon off by more than 4%. a lot of concerns there as well after president trump treated about the company.

joe: rotating position of the big tech companies. logistical look at the bond market. there? you see flattening with some yields. yesterday we had some substantial buying of treasuries. 2.7ear yield unchanged at eight. let us take a really long term 10ok at that to 10 spread --2 spread. we are at the lowest level since 2007. november at the beginning of the year we saw steepening. last year we saw flattening. we really resume to this flattening trend. more and more people are going to start talking about conversion. lisa: taking a look at currencies, lo and behold the dollar did well today. the euro losing against the dollar.

i would say easing trade tensions or something like that led to a strengthened dollar. no one can really explain the dollar. there you have it. it is a credit position.this is a painful day -- crowded position. this is a painful day. joe: what is th let us take a lk at oil and gold. nothing crazy. oil down a little less than 1%. gold getting hit a little harder. hanging in there about $1300. exactly. scarlet: president trump did not tweak about amazon. there was a report. butdistinction there, nevertheless that negative sentiment weighed on amazon. for more on today's market action, let us bring in the chief macro strategist. he joins us from winston-salem, north carolina. great to see you. what do you make of tech and

leadership? without tech, can the market rally? >> thank you for having me on. i think the market can stabilize the tech sector. it has been a huge market leader and contributor to gains given its extremely high relative to historical trends. given the small earnings power in the tech sector, the cap on the downside is not 5% or 2%. it is more like 50%. it is hard to see -- 15%. it is hard to see tech falling apart. scarlet: i'm glad you bring up the global economy. you have a chart that shows the global stocks. this of the stock market is not the economy.

but it reflects on parts of the economy including manufacturing george: absolutely. if you take the isn in the united states our markets global , ite for manufacturing pmi is in the equity indices. things are probably going pretty well if you receive bigger orders from clients. the chart showing that global economy has been on a big uptake 2015-2016 from the dollar and oil shock and emerging-market shock. it does look like it is starting to peter out of it especially with new u.s. markets looking the way it is. it is hard to imagine we keep seeing year-over-year gains similar to what we saw in 2017 and 2018. that suggests a little activity

has picked as well, at least in the near term. lisa: one thing i'm struck by is that it was not just the u.s. doing well. we were things to connect global growth that became a cliche as europe was really driving the someand there seems to be sort of positive in that. i want to highlight another chart you brought to us. eurozone activity acceleration has taken a pause. the events rises to the downside with economic data. how significant is this and what you expect to be the effect on equity? george: so we do not think this is the end of the world, but this is the narrative that has gotten everyone on board with the outlook for stocks in a higher yield around the world.

even a weaker dollar as well. that narrative is really challenged. that does not necessarily mean global equities will plunge or anything like that. we just think the really strong performance in 2017 into early 2018 is unlikely to repeat. it is the similar story for the actual economic growth numbers we're likely to see. missing expectations are not growing as quickly as expected as opposed to growing very slow or sing large parts of the -- seeing large parts of the economy in recession. we suggest the dollar is relatively cheap versus other currencies, and yields a relatively high. we have seen that play pretty well in terms of yields in europe since we sort of brought this forward in early 2018. it is starting to play out a bit more here with the way yields have played in the united states. we have not really seen it play out is in the dollar and the dollar continues to be range bound, confusing a lot of

people, including us. joe: the third chart you brought up i really like. a lot of people are talking about the theme, which is for the first time in ages you may be are not losing money and maybe can make money by being an said -- in essentially cash were you have the vanguard prime money market seven-day yield. blue line is the real yield of the money market. that is not flat. what are the broader portfolio ramifications? george: it is not quite back to flat yet. you're still using 17 basis points. it is pretty close to flat. from where we stand, this is a really important thing for thinking to start about getting great cash is not something to be a poor the way it was when the real interest ere negative.

that does not mean you need to got and sell all or stocks and long-term bonds and alternative investments in just by mutual -- money market mutual funds. but it just been is -- what it means is when you are thinking about the difference between risk rewards in equities and very low risk but no longer steeply negative in real terms reward in short-term money markets, it is a much more thoughtful case to automatically joe: andy stocks long-term bonds. is there an asset that is particularly vulnerable here? the first thing people will throw overboard? george: it is really hard to say. an assetley from allocation -- just from an asset bondstion perspective, funds are looking less attractive at the front end of the curve. i do not think it is as simple as saying everyone will ditch mlp's or utilities and everyone

will take treasuries and they will pilot to the front end. it is not that simple. it is more constructive for investors to think about it from have own way and say i duration risk in these other instruments. maybe i do not need to put incremental dollars into those anymore or maybe i can get stuck out positions in those instruments and not have to worry about reaching at the risk curbor maturity curve -- or maturity curve and find yield places where there are price volatility where there are look much lessat unattractive than they did a short time ago. lisa: macro strategist. thank you so much. cash is no longer terrible, and the dollar might actually start getting more -- better. scarlet: saudi arabia will be added to the russell emerging markets list. this is confirmation of what we had expected to see her. this should be positive for the

equity markets but saudi arabia stocks had rallied in the lead up to the decision. we will be getting an msci decision later on. love anticipation -- a lot of anticipation. coming up, amazon and tesla deep in the red today while the tech premiums jump to a 13-year high. why the fear factor is rippling through the tech sector. this is bloomberg. ♪

mark: the white house as president trump and theresa may spoke today and agreed on the

importance of dismantling russian spy networks in their countries. they also discussed how to work together to prevent chemical attacks in their nations and how passage of the lawful overseas use of data act on cloud will improve law enforcement cooperation. japanese prime minister chins oh en a session -- -- shinzo ab says he worries that may not be as discussed -- be discussed at the north oh summit this spring. he says trump will focus on intercontinental ballistic missiles and forget shorter-ranged missiles that the japan but not america. this will completely abandon its nuclear programs and a pair -- in an irreversible way. the tax overhaul plan are into making some provisions permanent and will have

americans "save more and earlier for retirement." chairman brady says the gop is reaching out to democrats to reform the internal revenue service. >> we think a new tax gold reserve the new irs and so we are working to redesign the agency so it is much more focused on taxpayer service, accuracy, and protecting the taxpayer information in a major way. we look to see this movement in april. mark: chairman brady added he is considering extending this is provisions, allowing for full expensing. the officer who exchanged places with a hostage during a seizure last week at a supermarket in france has been awarded the legion of honor, france's highest award. he died after being wounded by the gunmen. day-longnored in a observance led by the french president.

two former presidents were in attendance. it's often was. in procession to the final resting place of napoleon. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. joe: what'd you miss? the fear factor ever pulled out from facebook, and now it is hitting all of those big names. those stocks have recently been --paring stocks at a searing here's of all-time highs. lucas you to explain what is happening. concentrated in early february on s&p 500 stocks. unusually come up tech stocks were less volatile trade at one point today, tech stock volatility relative to s&p 500 was that a 13-year high. what is going on? luke: it was up a little over

seven bowl points. at ninee in and it was -- above nine at one point today. that is the highest since i believe august 2004. with that speaks to is both events very different in terms of the february blowup another tech blowup. there both very equity centric blowups. micro is the new macro for markets. joe: let us give ahead because we also have a chart that speaks to this idea of equities as the new macro. equity versus rates volatility. i'll concentrated equity. -- all concentrated in equity. luke: it is very bizarre. when you look at trading action, if you told me the curve would

flatten, we have the 10 year yield going down, with two tents pressingbelow -- 10s below. stockse the tech selling off. this is how it localizes in terms of the rebranding of tech based on where we will pay so much for future earnings when there is a regulatory specter hanging over the space. just looking at the volatility futures versus the move index. that is the treasury fix basically? luke: yes. this is a chart i borrowed. you can see it really starts to your ultimately start to labor at of both the time of the facebook allegations. this shows this round approaching the february highs is really a tech centric event. joe: you do not see is very much

but i think there are vix-like measures for individual stocks like amazon and microsoft. what is that about? there are some single stock options. goldman sachs has won, france's. off has one. apple has led. amazon has been. -- therture those average for those three happen at the highest, pressing multiyear highs. when you hear stories about the vix our guys hiding over or vix calls or things like that, this will show you that maybe folks are looking to hedge more in single name in terms of playing the tail risks for markets. that is something i was speaking to dave rogers. the something he brought up that there may be kind of this

hedging activity that is reflected more in the single names in the vix. head of office tied. not really that kind of off its tide, not really screaming. joe: it seems like the score he keeps shifting a little bit. i remember in early february it was about higher inflation and a short vix. joe: now -- luke: now it is concentrated in tech and rates are going down. it feels like there's this overall plow that has picked up over the last two months but it feels like the tenor of it has changed. i was rereading some of your work from october 2014, and you are talking about we're getting the s&p 500 index right around the 200-day moving average. it flipped from optimism to pessimistic really quickly. but that is what we're doing right now. joe: asset reporter luke kawa.

tesla's bondsp, are in freefall amid growing worries of the electric carmaker's ability to deliver on its production goals. i'm so fed for this conversation. we'll have the latest. will tesla make it? ♪

lisa: i crash in a downgrade did it alsotesla's shares, to the major shoal on the car company's bonds. by benchmark issuing slumped 3.4%. that is the biggest one-day drop since the bonds were issued in august, taking a field above 7%

-- yield above 7%. here to talk about why the key data point is that is liam. lyon, i find this story fascinating. tesla is a mystery to everybody. --has its haters lovers haters, lovers, it has a passion story. you see the box plunging. this story is sustained with debt that has gone toward earning piles of cash. is this a tipping point where all of a sudden financing becomes overly expensive for tesla? liam: maybe. lisa: ok. joe: take a stand good lisa: exactly. tipping is more of a point that i've seen thus far. we have seen plunges in terms of stocks before. we have not seen them in the bond much that they have only been around since august anyway. certainly, this feels like more of a moment. lisa: i was speaking earlier. if you take a look at the yield some of the inverse of the price

is the field. you are saying that she was a decimal run of cash next year and that yields this high are in unsustainable prospect. it is unsustainable if they are their financing gaps with bonds. i think their only option this year, if they're going to deliver on the model three and whatever the next project is, they are going to have to go next. there is a mini project for you have the roadster, the truck, well so they have planned? reasonable time there is an issue. but they come up with something new. liam: when a company -- joe: when a company has business model like teslas, it can essentially become a bank in the sense that so much of it depends on confidence and when the confidence gets shot, and that

coming back in hitting the fundamentals of the company that operates. liam: i think of tesla is a muddy mechanism. and is therefore external financing. it very rarely generates any cash at the operating level. it is dependent on external funding. now, that has got to be called into question. joe: profit rising substantially. when you talk about the ability to finance itself, you are saying it is not doing it for its own operation. this is not the direction you want to see in the chart. liam: absolutely not. it's a one third of their gross profit margin in the third quarter. when it needs to do is deliver on the model three. it essentially built itself to the point that has to grow into a mass-market car company.the

problem is it is struggling to get there. haveis forcing it to external funding at an alarming rate. if it does not show any progress on getting those models are production numbers up, but next week for example, we could see another selloff. scarlet: the first announcement will be critical. elon musk has delivered in the past with these announcements, hasn't he? lisa: he somehow made the bleeding stopped. liam: i think what he is done in general is a lot of the targets he sets do not get met. they tend to show some progress that enabled him to keep going. if you look at the end of the fourth quarter, they do not be the target they put out a statement saying they are gaining momentum in production and that bought them a couple of months of grace. scarlet: thanks, liam denning. on the out his work,

bloomberg. president trump calls for continued pressure after a great after jennifer kim jong-un is willing to discuss its nuclear program. 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. push to become the

most ominous force in technology and emerging markets industries is a major driver of the possible trade war between beijing and washington. peter navarro, president trump's assistant for trade manufacturing policy, was interviewed on bloomberg television today. peter: certainly the focus of the tariffs are on what is called the china 2025 industries. china, in my view, brazenly has released the china 2025 land that tells the rest of the world we are going to dominate every single margin and district --

emerging industry of the future and your economies will not have any future. mark: washington accuses china abusing the reins of the tactics to engage in widespread half of intellectual property. the commissioner for the eu says two of the missions of decarbonization are "a poor commitment." she spoke to bloomberg television. >> where we have a very clear strategy on the. -- in that. already financing the deployment of infrastructure. for example, in november we issued a big package of decarbonization that came along with the financial tools. this is already envisioned in the next financial period. mark: the commissioner's comments came after the eu had plans to have military mobility and member states to allow heavy

machinery, like tanks, move more quickly across the continent. hundreds of wealthy russians who moved to the u.k. promising to invest millions of pounds in businesses will have their visas reviewed. the british secretary amber riley said today and is part of after the nerve agent tackle the former spy. several hundred russians were given permission to come to the u.k. before 2015 under a scheme. concerns that the system a lot of great people and illicit funds into the country. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: let us get a recap of today's market action. the dow, little change. the s&p 500 losing 0.2%. the nasdaq the loser off by 0.9%. tech once again a drive on

equities. facebook did rebound basel amazon lose ground along with tesla. lisa: what'd you miss? beijing is confirming north kim jingling met president xi jinping on a surprise visit to china. it is said to be can's first visit outside the remaking them since he took power in 2011. beijing also said kim would be willing to give up his nuclear weapons and hold a summit with the u.s. here to talk about the next move for the u.s. is korea society president tom byrne off a trip back from seoul. thank you so much for being here. tom: thank you for the invitation. lisa: what is the message you picked up? tom: all of these events were unfolding before the supreme leader of north korea visited china. however, the message i got was fairly consistent. from senior u.s. government officials are senior korean government officials,

south korean officials, we have to learn from our past mistakes. verifiableak any denuclearization of north korea. the policy and maximum pressure between the panes. at the summit. the first summit of course with between mood and kim. -- moon and kim. we will that, they said be mindful of mistakes made in .he past joe: what is the significance is of kim's appearance? tom: i think there are two things in it is hard to get information since all this is in secrecy.

one, i think kim jong-un's strategy is a counter strategy and that is to survive the sanctions. i think so for the sanctions, whether they are taken in by is one thing, but they have taken on the ball at least. when he does the calculation, i think the military benefits from further testing are probably offset in that way by the economic costs. north korea looking ahead would want to swap the sanctions. china, on the other hand, once it's out of britain mind itself. scarlet: what do think xi jinping said about president trump without a goforth about the meeting? -- go forth about the meeting? tom: that is very interesting. i wonder if they would -- scarlet: i'm sure they talked about it. tom: i am sure they did. what he did say to kim jong-un, that he by chinois, is

expects north korea to be a mini china. stable, economic development, take care of the likelihood of likelihood -- likelihood of the people. lisa: i'm. develop the attitude is that create is there toward the u.s. at this point. is there more hesitant about the u.s. given some of the pommel of the past few months? i would say no, although the u.s., the trump administration's decision to take another look at the chorus, the fda t agreement is perplexing to many people. even if south korea had no trade deficit with the u.s., the u.s. would still have a global some hundred billion dollar merchandise trade deficit.

the attitude surprisingly improves a lot toward president trump after he took his state visit there in november and had the speech of the national assembly that was well received on both sides of the aisles. do think this meeting will really happen? tom: supreme leader kim, you that is his official title. scarlet: i see you keep saying that seamlessly. tom: there are a lot of kims and south korea. in north korea, iscarlet: will it be done with a lot of circumstance? the visit was done before we knew about it and that was done after the fact.

10 operates completely differently than the united states. real quick, why is north korean leader kim jong-un putting on the charm this point? tom: he is bigger, better, and bolder than his father. i think is just looking to seize the initiative. north korea historically has operated in the cracks of the great powers. they seek opportunities to divide and take advantage. a reliablet negotiating party. we saw the six party talks that lasted for six years from 2003 to 2009. i think they are trying to maneuver ending advantage . we have china involved

here. thackeray obviously involved -- south korea involved in the meeting. what about russia? holiday make sure their voices are heard here? tom: japan has a tight security relationship with the u.s., so i is probably onan board and does not feel like it will be left out. perhaps china. it would be left out of its strain of surprising events since january 1 and they --ted cap interest in north and south korea. lisa: thank you so much. tom byrne, korea society present. coming up, some indexes are heading toward key support levels. the question is, do they bounce up our crash through them? three charts you cannot miss coming up. this is bloomberg. ♪

lisa: it is time for charts go with abigail doolittle will rebrand the top technicians to look at in-depth charts and bloomberg functions. abigail: trinity today is of technical analysis. thank you for taking the time to join us. what a time to talk technical's. it is amazing what we are seeing happening with the markets. the market -- the volatilities after the slow melt offs. the opposite this year. what is happening? richard: removed from this market over the past 18 months coming of the election in 27 -- 2016 and this year the volatilities ramped up. ebix moved into the low to mid

20's from the high single digits. you can see that with the intraday swings. ofs is digesting a number factors, importantly interest rates moving higher and inflation moving higher. volatility moving higher. all of those weighing on a bull getting up inis years and multiples as well. that has manifested itself in the charts. abigail: take us through your s&p 500 weekly chart. richard: i was think it is good to make our way through the noise in the short term. this is the s&p 500. what i like about this chart is the 50-week moving average here. this is resistance for the entirety of the bull market. in two we emerged in came out of the low 2016.

that comes in around 2560. it is really important with a a weekly closen will available could set the stage for further downside and open the door to a bigger correction. i think we bring it together here and do get an assumption of the bolt threads. abigail: we were looking at a similar chart talking about the idea that we could go below 2500. getdo think we are going to the support? richard: as tech goes to a degree, so goes the s&p. it is the largest s&p sector. 25% of the index. of course, you are really on the rocks -- ropes here. this, you'rebout

still making a higher low on to the triple qs even with this technology that we are seeing this week. here,k the 150 day holds you've seen bank stocks, they are all holding in here pretty well even though we have seen some big drops. we get a resumption of the bolt threads. abigail: bringing facebook into the conversation. i think it is turning very well right now in terms of the patterns and the trend. let's take a look at your facebook chart. , another greatok way to get through the short-term noise. we're all in an uptrend and i would consider facebook to be in that same place. the last meaningful pullback that you have in the stock is 2015. you see that successful tests in

a hold of this yellow line. that is the 100-weekly average help throughout the entirety of facebook's public training history. this is 100 weeks and. we held it ever since. pretty, preclinical -- critical area of support. in 2016, 20 4% right now. in and around the same type of correction. i think history repeats itself. we get a resumption of the bowl transferring facebook one of the bigger stocks that was in the better performing names seeing civilization. abigail: this area more recently, a little triangle top, or to confirm it would take facebook below $140 per share. it looks like a pretty convincing pattern to me. also, the candles look pretty bearish to the ones back in 2015. why you think this will hold here? this is not let the most bullish setup? richard: i agree with you this is below the levels and it is the thin line between love and hate when it comes to the

broader market and facebook and just tech stocks in general. the evidence changes, as the saying goes, in essence of that we have to look at this is a great buying opportunity. 25% off the top and a premier franchise against the back of a choppy take in technology in the markets broadly. abigail: cautiously optimistic on stocks and they tech. thank you for taking the time to join us. scarlet: thank you so much. coming up next, w republican robert mercer is moonlighting as a small-town new mexico cop. how it can help him get one thing he cannot buy in ne. in new york, this is bloomberg. ♪

scarlet: what'd you miss? robert mercer is one of the most successful and mysterious investors of this generation. the founder of renaissance technologies came a household name in 2016 when he waited into the 20 16th is a natural election is a major donor to president trump trade he found another hobby in an unlikely place. sac myer has the story. you travel -- zach myer has the story. to new mexico to find out what robert mercer does. he is a volunteer police officer? >> yes. he was until a few months ago, and volunteer policeman in new mexico. in the middle of nowhere in the southeast part of the state. it turns out this tiny town has reserve program and the people are from all over the country. many are like former navy seals or firearms instructors or

high-level professional bodyguards. for some of them, like bob mercer, the trade is like you cannot -- become an officer, qualify, get a badge, and you can carry a concealed weapon anywhere in the country. scarlet: there is the link. lisa: every one of these reserve police officers come i'm looking at those numbers, one full-time officer, 150 reserve police officers. they have to pay their own way. what is the allure here? is a basically sort of the image -- is it basically sort of the image of being a western -- zach: for some anyway, it is pretty straightforward. a state like new york, it is a most possible to get a concealed carry license. if you get when working lives, it does not even work in new york city and it does not work in most other states. if you are a law enforcement

officer, it is as if you have a license to carry a handgun in every state at the same time, including new york city. joe: how many cities are little towns are like this around the country that have these outside volunteer police departments comprised of people who want to get a permit to have a gun? i'm not sure anybody tracks that when you hear stories about her displacing kentucky does or this place in michigan, and sometimes they attracted little attention but it is a very local issue. lisa: did they use the guns? when you were there, were there a lot of reports of them going into homes and shooting at things? reserve is when they go arthur they are there for training and to work on the police force to help give them extra manpower. scarlet: did they need the manpower? lisa: that is my point. zach: this guy who is the one full-time officer there is a

that had a smart idea with how to get manpower without having to pay for it. these people are willing to come here on their own time -- dime from all over the country. they are often well skilled and well-equipped. they pay their own way and have to show up six days out of the year and help them out. really enjoy this profile. this will seem kind of random. can you do a profile of heather mercer? you have one paragraph about his daughter and she seems like one of the most interesting people i have ever heard. lisa: i talk about how mercer -- sue is as well. most of the have heard about rebekah mercer but heather sue walked onto the duke university football team, joins the team and the coaches not want to play her. scarlet: she was a kicker, right? zach: she was better than some of the guys. she sues for sex discrimination.

she begins a high-stakes poker player, but the bakery in new york city. does all these interesting things. put her on airplanes for profile. i'm wondering, the broader mercer hase is that backed a lot of pro-gun organizations and messages. what did you learn about his motivation and that of people who think similarly to him? zach: he is certainly not alone. he has said in one of his rare public statements, he specifically mentioned gun rights. it is true his interest in and get radios an -- he owns a company that manufactures guts. there is no question on what side of the gun debate he is on. compared to the nra, there is no one else in this country who has the kind of power the nra does. -- guy inmportant got the trump administration. lisa: fabulous story.

thank you for being here and i recommend everyone read it in the latest edition of bloomberg businessweek. it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. doc you sign filed for initial public offering on nasdaq under eocu. the 15-year-old private tech company allows users to add signatures electronically. gn raise nearly $560 million in venture funding since its first round in 2004. ron has said to have left uber. he was essential in the company. he cofounded the time is trucking company auto, a quiet -- -- otto, acquired by uber. the departure said to be unrelated to the collision in arizona involving an uber autonomous suv. equifax has named mark b gore managing director as its next

chief executive. the new hire comes seven months after a massive data breach that the credit bureau shares tumbling. he will take over april 16. the company has been shuffling top managers after it's disclosed personal data, . that is your business flash update. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

tomorrow will be when you're since theresa may announcement. it will also be one year

mark c.: i'm mark crumpton, and you are watching "bloomberg technology." the white house says president trump and british prime minister theresa may spoke today and agreed on the importance of dismantling russian spy networks

in the u.k. and the u.s. they also agreed to work together in preventing chemical attacks in both nations. a federal judge has ruled that anddistrict of columbia maryland may proceed with an unprecedented lawsuit against the president. that's according to, "the washington post," which reports that the business dealings 's maned the constitution on receiving improper payments from individual states and foreign governments. the president's former campaign aide rick dates -- gates communicated directly with the man he knew was a russian spy month before -- a month before the presidential election. through your -- the european union is making plans to improve mobility among its number states and allow equipment and heavy machinery to move across the continent faster. member states will look at where the bottlenecks are and how to ease customs formalities. the eu also will need to look at h