restrictions in the market settle down. xi says he believes in punching back at least when it comes to trade. emerging markets are caught in the crossfire. goldman sachs is it's time to get defensive is trade talks moved to action. welcome to "bloomberg daybreak." washington, you are down there and it turns out trade is the issue thereto. alix: this is the world gas conference. the first time in decades and d.c.. the big question becomes china the biggest lng buyer in the world, everyone wants to sell to them. u.s. companies need long-term contracts. if there's a trade dispute why would a chinese company confirming long-term contract? that's a cousin that question -- question i'm looking to get into. david: how worried are they down

there? alix: so far it seems quiet. also wind up happening the liquefied natural gas ceo saying buyers are waiting to make investments. we will talk about that with an array of guests. the former secreta of energy who will break down trade talk as well as the man who pioneered exporting lng from the united's -- united states. i'm super excited. in the markets though it's an interesting session developing. we are rolling over a little bit , s&p futures off by about 22 21 points for the dow after the dow broke below its 200 day moving average, the first one since 501 days.

in terms of the s&p as well. tech got slammed. will we make up any kind of ability today? in terms of the dollar, it is a bit of a stronger dollar story. oil pretty much call. -- much calm. david: that's the best market check of ever seen without the boards. alix: i hope i'm right. david: now it's time for the morning brief. at 9:00 eastern we will get u.s. house prices for april. at 10:00 a.m. we will watch the supreme court debate on the travel ban to labor union fees. the u.s. treasury will sell of two-year test will so two-year notes. vincewe are joined by cignarella and lisa abramowicz. if you take a look at the s&p it was a touch below that 50 day moving average. the nasdaq that drag down. we had a reversal in the s&p

when navarro said it's not just about china, it's about everybody. you're misreading whrump is saying. lisa, what does that wind up leaving in terms of market sensitivity. lisa: everybody is trying to the drug who is calling the shots. that's a big question given the fact maybe peter navarro is coming out with one tune. president trump is trying to cater to a particular populace site guys ahead of the midterm election and that's part of the issue. there's a lot of the -- a lot of things at play and conflicting debates clearly coming out of the white house and the administration. people are still nervous. it didn't calm everything. we and is not everything we are fine. alix: how does that deal with the dollar. is a lot of confusion as to the dollar is a hedge, safe haven or

because the u.s. is holding up better if you take a look at equities in sentiment? vince: the u.s. is homing up better and we saw a real nice pop in dollar-yen after the comments. look at that and people are continuing to buy again as a safe haven, japan is the fourth-largest exporter in the world. so to continue to buy again is a haven in the mitts of the trade war is a rather silly thing to do in my opinion. but we shall see if the markets keep holding on to that trade. david: is president trump data dependent? steve mnuchin also yesterday walked back some report saying they were wrong. are they getting nervous in the white house will they are doing? lisa: president trump has been notable for commenting on the stock market performance or you have to wonder whether they are watching the selloff and whether

what economists are looking at is economic confidence and business confidence numbers. they are looking at south korea because their data tends to be more expensive to trade skirmishes and are looking at exports in the tax sector. everyone is trying to parse the ofa and holdup examples signs showing we are ready seeing the effects of it. whether we are in how deep this will go is unclear. david: the white house seems to be dialing back a little bit. xi in meantime president china seems to be going the other way. he reportedly said in the western of the notion that if somebody hits you on the left cheek you have -- you turn the other cheek, in our culture we punch back. you just mentioned confidence between business. , it reallyhart here

shows pmi's dropping. lisa: this is one thing people are looking at. they are looking at manufacturing data are you going to see a decline in exports? foreases in prices consumers in the u.s. on the heels of some of these tariff concerns? a note of caution. a lot of people will say don't put too much stock into this because you have companies coming out using this as a convenient excuse for other woes in their businesses and people might say the same thing. we can blame it on trade and argue the point. people are parsing through that and suggesting trade tensions. tradersnce, our trade taking this seriously? lisa: they have to. -- vince: they have to. markets are holding onto almost anything. at the end of the day, it's a

really good trading condition. when you fade a range and it comes back towards the median, it's a great trading position. this is the time when they have stepped in to stabilize the currency. because whenfused i talk to people they say the real money -- for real money this is a difficult time to do trading. vince: i think it's a great time. is very countercyclical here? vince: if you are thinking in the long term. these are great opportunities. if you think the way profits and everybody else views the stock market only goes one way, these are great tips to buy. if you think it will be higher a year from now, it's a 200 day in the dow jones. what a great place to buy.

there you go. if you believe in it. if you don't, then you turn it. alix: what an interesting is to see the change in some of the elite at goldman sachs. lloyd blankfein saying negotiation tactics, but the global asset manager weighed in and she basically said it's for real. >> now i think investors are more cautious. there may be something pretty substantial done by the u.s. that generates reaction from china in the eu. if that reaction and potential tit-for-tat that has people nervous. alix: you can see that when it comes to emerging markets. you can see the massive amount of emerging market etf about flows we've seen, that white bar last week. etf small capsus being 1.9 billion of inflows. i'm trying to get a handle on emerging markets.

goldman wants to get cautious. pimco says it's time to buy. lisa: emerging market -- vince: emerging markets in every good place to be in a trade war. i think we stay in this tense market flows right through the midterms. we will see how it breaks out after that. if republicans do well this will embolden trump to think he and his policies are right and will give him more power to push back on china. if they do poorly in the democrat stepping he may have to step back a little bit and the trade issue becomes easier for investors that are market players. alix: what was interesting is there was a wells fargo note that said pension bond portfolios may need to pare back 19 billion in equities and 14 billion in bonds, is there going to have to be some kind of rotation in the market? lisa: the question here is there's a lot of liquidity and a

lot of money that needs to get invested. people are looking for steady income. if you look at relative value trade. particularly versus u.s. high-yield you are getting extra yields to own u.s. high-yield bonds versus emerging market debt. 2015, you'll have to think some investors might say not a terrible time to start locking in higher yields. david: what do we think the dollar will do? pimco is saying it's maxed out. vince: i don't think it is. i think we have fluctuation between -- it's not really dollars story. the dollar is more of a story when it comes to emerging markets. with trade tensions escalating, e.m. will suffer. there are so many different variables. elections,idential

results elections coming up. potential german issues. there's so many different things that it almost could really just trade sideways. vince lisa abramowicz and cignarella, thanks for being here. we will have more on the boston private wealth ceo. this is bloomberg. ♪

emma: a day after saying it was considering a takeover bid, france's -- will not make an

offer. deal would've faced several hurdles. under u.k. rules, they cannot make another offer for six months. bmw is warning of a full backing investors in the u k if a final price a deal doesn't ensure the free flow of goods to the eu. the german automaker has plans in the u.k. amidst ongoing uncertainty of negotiation is not helpful. bmw says arrangements remained a cause for concern. the ceo said it's not considering moving production out of the country. the only train platform crash and made it difficult for shareholders to trade shares as the company made its debut. they were the lead manager and but it will absolutely help

will not say when the system will recover. that's the bloomberg business flash. markets weretock down over 1% in apparent reaction to trade friction. , youeasure of the effects can see from this chart, a correlations going down. now since late 2017 at been trending up which might indicate is more vulnerable to macro changes. we welcome shannon, boston private wealth see a.l.. good to have you here. shannon: it's been interesting to see this escalation of tariffs and trade policy concerns. we are getting quite get reactions. most people believe this was posturing on the part of the chinese and trump administration. what you're seeing now is the

comments made yesterday that people are starting to think aout actually factoring in sustained trade war. that's why you see the higher correlations between different factors. something sustained would certainly impact the overall economy more rather than just these targeted company leasing reacting britain david: -- reacting. whether it's a bluff, negotiating tactic or real. how as an investor did -- decides which it is? stay out ofwant to making a binary that. i think the important thing to do is figure out the actual economic impact this could have on the overall economy and factor in what you think your portfolio will react based on the economic expectation.

if you do that at the company level and think about where we could go from now based on a trade war. i think that's where you see the differentiation and a move from the correlation the last several weeks. 43% of the selloff in the s&p actually came from tech stocks. you can see just how steve that slide was in the same stocks. where is the blue line is the s&p. looking at facebook, apple, are you selling or do you buy the debt? -- dip? shnon: the one thing we need to think about is several of these stocks are very tied to advertising. if you think about overall economic recession, i think advertising is hit hard. beenof these stocks have somewhat recession proof and i

think a pullback over the last several days indicates that investors are getting wiser as it relates to how a recession could impact the is. alix: what do you do with your portfolio? how much defensive exposure to you have, how much alpha exposure to you have? shannon: i think it's too early to get defensive. we are picking our spots as it relates to different companies. we are looking more at underlying fundamentals and valuation of companies rather than an expectation of an overall deterioration of economic conditions. if we were to expect this to occur, we would be getting more defensive. that's why you are not seeing rotation to value we've all been waiting for for the last couple of years. despite a pull back, growth and momentum rain. i think we will see that in the back half of the year. tech was sort of immune

from all the various decisions pending around the world. has it become radioactive? tech's of the core of what's reported to be possible restrictions and the u.s. government. shannon: it is too harsh to call it radioactive. i think we have to be a look to be more introspective about our feelings of technology. we also have the changes coming up. i think people will start to look at text differently. we as analysts certainly do. , seeing hardware, software, social media. and that will change portfolios as well. alix: what do you like right now? shannon: we are continuing to look at certain names in the discretionary space. we are looking to add some potential tech names we like. i think from our perspective thats issues

have beset some companies. we like oracle and think there is opportunity. we look at adding to that position. stocks thatway from have had winds over the next several months. we've moved out of some starbucks position given the fact we don't see good opportunity in that company and we think there is other opportunity with some discretionary names. david: please stay with us. on theup more downsizing way for ge. we will talk about that next. this is bloomberg. ♪

alix: ge slimmed down again and investors like it. shares are trading higher after announcing plans to spin off

health care business and sell its stake in baker hughes. joining us is the bloomberg intelligence senior analyst covering ge. also is shannon sukkot you. will ge become a power company? >> aerospace will be bigger and better. power would be a big part of ge. and: aside from power aerospace, why are they spinning off their health care business? why are they getting out of baker hughes when they bought it not even a year ago? >> they have a liquidity problem , a cash problem. selling 20% of the health care unit will generate cash. is worth $23 billion, their ownership of it at current prices. over the next two years they hope that will appreciate. this will go a long way to

solving the credit and cash flow issues and concerns people have about their financial status. david: what happens to all the debt and pension obligations? they have a lot of responsibility on their balance sheet. have a goal with what they will raise from these transactions to reduce debt by $25 billion over time. baby $30 billion pension liability. the specifics were not yet cited. they will have to do something about that. they will round up a fair amount of cash which should be able to address those issues. alix: shannon, are you bummed you sold? shannon: i still think it's a little early. i think what you will see is you will see a different investor for ge. people felt it was defensive in nature.

i think what you will see if they are transforming to retry more -- to be try for more of a gas business. if you are one of the -- that dividend is going to go down. i do think there will be a. oftransformation -- a period transformation. david: how much of the lift in unlocking the value of that health care commented higher value they didn't realize. think that investors and shareholders are happy to see them unlocking the value. the health care business is a good driver so it remains to be seen five or six years from now if they try to foray back into the space. the baker hughes divestment makes sense. focusing on power which is what

analysts have been looking for. karen, thank you very much. shannon will be sticking with us. says the natural gas boom is all about china and the u.s.. could the trade war change all that? we will talk to the nuclear threat initiative ceo and former energy secretary. the markets still calm, now on the downside. this is bloomberg. ♪ two, down, back up!

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which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. alix: this is bloomberg daybreak. i'm alix steel. a think it is going to be little bit calm her in the markets but the s&p starts to roll over just a touch.

we are now off 10 points in the premarket. also want to look at what's happening in europe, the dax getting hit. an dollar not off the highs of the session but trending weaker. dollar-yen still going to be the same haven of choice. crude up .4%. just watch potentially if we continue to roll over. get an update to on what is happening outside the business world. emma chandra has first word news. emma: london's heathrow $16 billion expansion plan has won the banking of data backing of the u.k. parliament. customers biggest called the price of expansion to state. trade tensions between the u.s. and china are put in several projects at risk. china energy investment pledged

$84 billion in shale and chemical manufacturing projects following president trump's trip to beijing last summer, but the escorting trade issues are causing problems. special counsel robert mueller is preparing to accelerate his promise into possible collusion between donald trump presidential campaign and russians interfering in the 2016 presidential elections. a source says mueller and his team has an eye toward producing conclusions and possible indictments related to collusion in the fall. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. alix: quantifying the real is first andiffs foremost on markets mind. this chart shows global trade

momentum. one area potentially immune is natural gas. said today china will make up one third of global demand over the next five years as trade rises to 500 billion cubic meters. joining us right now is ernest munis, cochairman of the nuclear threat initiative, former secretary of energy. thank you for joining us. you are speaking at the broadcast conference, which is why i'm here. will be wrapped up into the trade war between the u.s. and china? >> china has a lot of incentive to stay in the u.s. market. u.s. lng will reach 10 billion cubic feet a day by the end of the decade, third-largest in the , and certainly china has

access to others. australia, qatar, but they like diversity. , and certainly china has access to others. they may continue this exemption for liquefied gas. alix: we have seen some rumblings at the conference, ceos of companies looking to secure long-term contracts. everyone is going to china to get those long-term contracts. if there is a fallout of any capacity, can we build on our export terminals, pipelines? ernest: we are already building out for this decade. the real issue is the second wave of lng facilities, 2022, 2023. there, long-term contracts provide a lot of support for financing and the like. remainend, the dynamics that lng will grow dramatically, will be a large market. i can understand the uncertainties right now. i have a hard time seeing that these will not get worked out in time, certainly for this second

wave of exports. move to another area in the market of power and the department of energy, the third attempt by the administration to subsidize coal and nuclear plants in the southeast, asking power suppliers to buy power from plants that should be closing. if president obama came to you and said do this, what would you do? ernest: first of all, my advice notd be to basically contradict the market principles that have guided our whole approach to energy in this country. the way to look at it is -- if you are going to do public regulation to support energy, you need a public good to do it. what is the benefit to the public? for nuclear power, clearly, there is no carbon, there are national security imperatives. the case has not been made based on things like fuel supply,

resilience. the north american energy reliability council has said recently that they are increasing. i don't see the arguments and i think up to now either it has the military commission -- regulatory commission --neither has a set of bipartisan experts. i speak to express related to the industry, they say there are issues -- maybe not that the administration is pointing out -- but maybe transmission, security does has a risk. where do you see the risk? ernest: if you look at reliability resilience issues, it is mainly connected with the wires, transmission, sometimes distribution systems in big storms. include a lot more information technology, sensors, etc. in a transmission distribution system, i think,

makes a lot of sense. we have a long way to go to value things like various services, like keeping frequency and voltage stable in the system. that is where the focus is. frankly, i'm hard-pressed to see where the supply side has been the problem with resilience. in fact, if i may add, one talks about trying to advocate fuel storage as an issue, as though natural gas has been a major supply problem. it has not been. in new england, when we had a shortage of gas in february in a cold spell, it was not because of the transmission system not operating. it is because, in my view, counter to sensible planning, new england has declined to increase its import capacity from pennsylvania. then what the system did is, it used oil as a substitute fuel

for gas for a short time in power plants. we have aresilient system -- i don't want to be too pollyanna --. we need to work on it. smart systems. i just don't see the arguments being used by the administration as having any convincing basis. alix: let's move to the nuclear initiative and your role on that. i want to get your thoughts on iran, president trump away from the iran nuclear deal. european companies are stuck in the middle. they don't want to get cut off from the dollar payment system. what do you think europe and subduing? been and wase has working very hard before the president's announcement, which was a terrible strategic mistake. i think an issue will be -- and don't forget russia and china -- can they work together to

support things like oil sales from iran, which is the main generator following the agreement. i think some of the smaller shielded from sanctions.ght be the reality is, we are still waiting to understand how treasury will impose the sanctions. if it is a blunt instrument in terms of sanctions, when you implied is right. multinational companies will have no choice other than to stop operating in iran. as though the data we are getting will be harsher than under president obama. japan has been asked to stop buying iranian crude. what are you hearing? ernest: that there is a lot of resistance to that. secondly, i would add china is the biggest customer. i don't think china -- maybe not unconnected to your first iestion about trade issues --

don't think china will be too zero out oil servin exports. it will be interesting how china and russia respond. during the obama administration, the sanctions were very effective. they were very effective because we had the cooperation of countries, and not only our allies, in terms of reducing iranian oil imports, and withholding the funds. split the we have alliance, we are not on good terms with russia, we have trade issues with china right now. while these sanctions may be somewhat affected, we are not going to have the cooperation we had before. i might add one other thing we have not mentioned. in pulling out of the agreement, what the president has jeopardized is the world's

strongest verification regime. verification is the key to the iranian agreement. i will note he will be hard-pressed to talk that, and he must, in a korean agreement. alix: it was great to see you, thank you for stopping by, ernest moniz. still ahead today, we have an all-star lineup of guests from the world gas conference in d.c. we will hear from the teller in chairman. it basically invented the lng market in the u.s., as well as the qatar petroleum ceo. it always comes down to commodities, thank you. we want to turn to emerging markets. we heard from goldman sachs's international ceo and she says companies are getting nervous that trade wars are amounting into something of real consequence. >> investors are more cautious.

there might be something pretty substantial done by the u.s. that generates a reaction from the china -- from the eu, china. that has people much more nervous. david: still but this is shannon saccocia. i am putting out a chart, etf fund flows. it shows particularly this month, but even in may, really going south. money is coming out of emerging market etf's and going into russell 2000 small caps. does that surprise you? .hannon: it is not surprising it is not just the trade war but also the dollar. going back to 2013 we saw weakness in emerging markets based on the fact that we thought the dollar would strengthen rapidly as we tapered quantitative easing. policy with aade strong dollar we have seen in the first half of the year and the reversal from last year. although investors may forget

that emerging markets have underperformed in the last decade versus developed markets. we saw a great year from emerging markets last year you get trade concerns, stronger dollar, flows out of e.m. david: we also have a call from pimco out today saying the dollar has topped out and we should be going into e.m. where are you on that question? shannon: we feel similarly. although there may be a little bit of additional strengthening in the back half of the year, most of the strengthening we expected to see in 2018 has definitely happened already. i think the tailwinds are on the side of the em, rather than headwinds. from our perspective, is not a bad time, especially if you are underexposed emerging markets. david: if you are under position, what is the smartest way to do it? shannon: i think a diversified basket.

there are ways to actively managed in the emerging market space and there is some bifurcation in markets. the trade you will see in the back cap of the year will be a dollar trade. if that's the case, you want to to emergingeta market stocks in general. david: thank you. that is shannon saccocia. coming up the biggest coming-out party in two years. china's richest people are grabbing a slice of a new ipo. bloomberg surveillance can be heard all across the u.s. and sirius xm radio. live from new york, this is bloomberg. ♪

emma: mrs. bloomberg daybreak. coming up in the next hour, charif souki, the tellurian chairman. this is bloomberg. alix: we returned to wall street be. three things wall street is buzzing about this morning. chinese richest by xiaomi. millionaires are buying up stakes in the smartphone maker ipo. then claims of indian real estate fraud. two high-profile hedge funds are investora real estate of prodding investors of $1.5 billion. andreessenitalist horowitz has hired its first female venture capital partner. david: it is about time.

us now is jason kelly, our executive editor for global television. .he xiaomi ipo was a big deal over $6 million. but it is not just these three billionaires, but who they are. arguably the three most important people by many accounts in the broader chinese business world. kind of like a warren buffett of hong kong. jason: a hero inside the hong kong community. warren buffett is a good example because he is someone that has that oracle way about him. ma's who have the put china on the map economically. this, iticly endorsing feels like a big deal. david: it is a big deal in terms

of the number, but as they set this up, a good housekeeping seal of approval some -- from some pretty reputable people. going back to your buffet example, investors look to big investors like this. very few people have messed up by following the likes of these names before. if you are a banker putting an ipo out there, this feels pretty good for your book. alix: on the flip side, there is an article on the bloomberg that says because of drops in city interbank rates, demand for the ipo could be tepid. jason: just propping it up. alix: our next story has to do with hedge funds. high-profile hedge funds are accusing india's biggest real estate investors of defrauding investors by $1.5 billion. jason: i was amazed by this, too. .ou look at this

many people know the names in this. we thought we had been robbed of just a couple million dollars, but it turns out it was a lot more than that. and to your point, so brazen in a lot of ways. we were talking about it before we came on air. this is not everyday investors being snookered. these are some of the most influential pensions and endowments of the world. notre dame, stanford among them. david: and no comment coming out of them. they are accusing a billion-dollar criminal and spirits he involving shadow conspiracy, don't documents. the way they describe it, it was out and out theft. jason: cinematic in some ways. it is notable when you look in this. ae reporters at bloomberg did nice job threading the needle as

well. really captivated the private equity world. similarly, fraud in a different sense. david: didn't i see it on the bloomberg that one of the executives was caught bouncing checks that could not clear? jason: yes. this was one of the most high flying emerging market names. you had a conversation coming into the segment. there is risk and reward. people look at funds like this, trying to invest in india. in this case, more middle east, africa. david: talk about high flying in a different way. andreessen horowitz, really successful venture capital. they finally named a woman as general partner. specifically, in the cryptocurrency area. jason: that is what i found was most interesting.

of course, interesting she is a a nature the brotopi of silicon valley. notably, aypto, but former federal prosecutor. it is interesting that when you are investing in crypto the best voice you are going to put forward is someone who has actually investigated crypto and all of its adventures. you are not tapping and often unnecessarily. you need someone who can look at this with a serious eye. look into several conspiracies years back. david: thanks, jason. the new versus the older ge. has ceo john flannery finally managed to find a tension between the two?

this is bloomberg. ♪

trimming its keeps business, which is part of ceo john flannery's plan to reshape the company. joining us now for analysis is brooke sutherland, bloomberg analysis reporter. people are saying, what is taking you so long, john? is he finally getting their? ooke: this is the big one. this is the breakup announcement everyone has been waiting for. for me, this is a sign that he finally figured out how to balance the ge of old with the ge of new he wants to create. for 30-plusthere

years, was he willing to get radical, do some of these changes in the portfolio that i think need to be done for ge to be successful moving forward? this is a significant step in the right direction, i think. this is not a magic fix. shares are rising in the premarket but they are still way below before flannery took over. ge still has a long road ahead of it in terms of getting its power business back on track, improving cash flow generation, dealing with issues at ge capital. this is a significant step forward and he deserves credit for that. alix: what didn't they spent or sell? what is next? the debate was whether they would do something with the ge aviation. this was the crown jewel of the portfolio. there was speculation, could they merge with honeywell or boeing? at this point, the communication from ge is this is it, this is

the big brick of change we will see. you have to wonder down the road as the power business gets back on stable footing, does that business need to be continued to be paired with aviation? i don't think speculation about the report will you will stop with this but this is significant enough that it is good enough for the time being. alix: brooke sutherland, thank you for joining us. petroleum the qatar ceo will be joining us. qatar, australia, the u.s. those will be the big lng suppliers to the entire world. what a trade war means for them. 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. david: calling the waters.

denying reports of investor restrictions in the markets settle down. emerging markets caught in a trade crossfire. goldman says it is time to get defensive as true talk moved to treat action. breaking of ge. the company spins off its health care business and divests its stake in baker hughes as part of john flannery's turnaround efforts. bloomberg daybreak on this tuesday. alix is in washington, d.c. of course, they did not divest yet, but in the next two years. alix: baker hughes up for grabs. luckily, oil services turn and run for that company. i am here in d.c. for the world gas conference. lng trade is set to reach 500 billion cubic baker hughes up f. meters over the next five years, and enormous amount. china is at the center of all of it. if we get into a trade with

them, what does it all mean? david: there are so many times where we are not sure if the president has anticipated things. we have about soybeans, manufactured goods. that we have thought about lng. china needs it and we have it. alix: it was totally left out of any type of tariff restrictions, so we will break down what that means for investors in the u.s. and for other countries that produce lng. we will be speaking to the qatar petroleum ceo, as well as charif souki, who pretty much established the u.s. lng world. ryan lance, interesting, it will be an oil permian conversation, as well as a trade conversation. in the markets, we are softer as the trade continues. s&p futures off by two. dollar-yen off by .2%.

the yen still trying to persist, the safe haven of choice. watch tech stocks. they got hammered yesterday. 10-year, 2.87. not the kind of yields that you would expect to see based on the massive equity moves we saw yesterday. david: now it's time for the morning brief. 9:00 this morning, we get u.s. house prices for april. at 10:00, we are watching for supreme court decisions on the travel ban and labor union cases. and at 1:00, the u.s. treasury is selling $34 billion of 2-year notes. alix: company starting to detail the impacts of tariffs on their business. yesterday, harley davidson saying that they would ship their production out of the u.s.. this morning, the president on twitter, they were

just using the trade war as an excuse. unbalanced the trade war is, but we will fix it. we are opening up close to markets and expanding our foot. play there or they will pay tariffs. unbalanced the trade war is, but we will fix it. is isaace now boltansky. who is next after harley davidson? isaac: this whole episode shows that in the trump administration you can go from poster child to vrana in a new york minute depending on your reactions to his policies. in many ways what we have seen withe past 48 hours harley, daimler, these are just the canaries in the coal mine or

what ultimately will be a slew of other corporate actors following suit. alix: what did you make of all the discord over the last 24 hours? saying you arein misinterpreting what is going on with what president trump is saying. what is the reaction function we are looking at? isaac: incredibly unsettling for people in washington and wall street. we look to these individuals, treasuryy theisaac: secretary, for a degree of credibility, especially in moments where we are looking for the markets to be settled down. in reality, he set off the greatest period of uncertainty yesterday. thewere looking to b trade hot navarro to provide some treasury calm. alix: a lot of deadlines coming up when it comes to china. the end of the week they will decide on new tariffs. you have some new tariffs coming

in next week. what can we expect over the next month or so? isaac: the vast majority of arrifsthreatened t have not gone into effect yet. the biggest mile marker this week is the release of the report on friday. that will tell us a lot about where the administration is, and also who is ascendant within the administration within the inner circle. who is running the show? beyond that, we will have to see what goods are actually on our tariff list, and beyond that, how the other countries will respond. alix: before yesterday, it felt like china's response was very measured, saying yesterday that they would not target u.s. companies operating in china. yesterday we learned she is in thing sent on with european ceos and basically said, you may want to turn the other cheek.

but in our culture, we punch back. what does that look like? isaac: this is slowly shaping up to be the worst case scenario for market participants. we have uncertainty within our own policy making apparatus and you have what appears to be a united global front against our policies. china taking a more active role in the global trading regime. alix: isaac, great to see you. a really exciting month. trade tensions taking a toll on the markets yesterday. we look at the s&p, below its 50-day moving average and then inching above it as we went to the close. joining us now is lisa erickson. dochina taking a more active re in the global trading regime. on a day like yesterday, how do you hedge it? lisa: our advice is to stay path.

certainly a lot of news in the market but there is a lot of uncertainty. until we have more details, we would caution our clients not to react. at all you are looking picture where the underlying fundamentals in the market remains strong. if you look on a top-down basis or bottom-up basis, we continue to see those growth and supporting figures come in well. valuations are little bit stretched but overall we don't see overarching alarm for concern at this point. at this point, we need to run at what's happening with the trade war's while continuing to keep a close eye on what may develop over the next few weeks. david: to what extent are you concerned about pmi and soft data? it is generally thought that that is where it will first show up. lisa: we are keen on monitoring not just tmi but a number of leading indicators. our we looked yesterday at most recent economic health check on the u.s., which

monitors over 60 broad indicators, what we are seeing is two thirds of them remain in positive territory. while we want to continue to monitor pmi, we are looking at a broader array. so far we feel comfortable on that macro economic outlook. insofar that there is a vulnerability in the markets, where do you go for a safe haven? lisa: we are actually still being very positive on some of the most growth oriented sectors. while there is uncertainty overhang from what is going on with some of the tariff issues and so on, some of our favorite sectors are technology and consumer discretionary. again, while some of them may be in the crosshairs of what develops in the next few weeks, if you look at the underlying growth trends in those areas, they both have secular trends, changes in disruption of technology, ability to innovate, ability to pick up more share because of shifting consumer

taste. in addition, you have some specific companies operating very well. with that blend of top-down and bottom-up forces being able to support some of those sectors, and the fact that market is looking for growth in a very modest overall environment, we continue to feel some of those sectors our clients should stick with. alix: any benefits getting into cash? lisa: right now we are not advocating any specific allocation to cash. in fact, we are advising our clients to stay neutral on their strategic asset allocations. asset look across allocations, when you are finding is that there are pros and cons on each and there is no particular standout favoring fixed income, for example, or real assets, or equities. we believe with that neutral position, it positions you well,

as there are potential market due to extreme investor skepticism, perhaps overreaction to particular events, to allow you to then reposition. we don't think cash is necessary at this point. alix: wells fargo had an interesting note out. yesterday it was all about what caused the selloff. rebalancing,aps the pension bond portfolios may need to pare back $19 billion in equities, and add $14 billion in bonds. what do you make of that? lisa: certainly we advocate over the long-term continuing to rebalance your asset allocation to remain true to where you want to have strategically. that being said, we continue to have these kinds of rebalancing activities overall. as we look at the valuation and growth outlook, we believe it's best to stay neutral overall. while there is certainly a

a month or two, may influence where value equities are. over the long-term right now given the market scenario we are advising clients to stay more neutral across their strategic asset allocations. david: lisa, please stay with us. is set to qatar become the number one lng exporter by 2023, but the u.s. is right behind. so who will ultimately win the natural gas race? alix will be speaking to the qatar petroleum ceo. this is bloomberg. ♪

emma: this is bloomberg daybreak. one day after announcing a possible takeover bid, france's

you tell set says will not make an offer for inmarsat. some say any deal between the satellite companies would have governance hurdles, especially with brexit in the future. the u.k. rules you tell set cannot make another offer for six months, opening the way or the u.s.'s echostar to produce the satellite operator. earlier today, the mizuho trading platform crashed, making it difficult for traders to make trades as the company made its public debut. mizuho was the lead manager in the ipo and says the crash was due to a network failure. mcdonald's is looking to revise its breakfast business with muffin tops and catering. they say sales in the u.s. has weakened. trialed certain items in certain restaurants and will start testing catering in several restaurants in florida.

critics theea chinese gas demand will soar 37% between 2017 and 2023. everyone wants a piece of the action but it is the u.s., australia, and qatar who will account for 60% of the supply by 2023 with the u.s. taking lead if u.s. projects get the green light. here is someone that has some thing to say about that, saad sherida al kaabi the qatar petroleum ceo. thank you for being here. i want to start with the trade war's we are seeing. has a reaction to buying u.s. lng, what kind of opportunity does that create for you? >> it is important we leave lng and china out of the so-called trade wars. it's important that people get access to clean energy. gas is the cleanest energy available to mankind in the fossil fuel arena. alix: if it gets in?

what kind of opportunity those that create? saad: my advice would be to leave it out. it would make us more competitive in areas, make the u.s. less competitive, if that is put in. we think the demand growth in the world needs everybody to be a part of that energy mix. qatar is the largest lng supplier today. australia is also quite large and growing. we have announced we will grow our lng business from 77 million to 100 million very soon, so that is a big growth. we are also investing in the u.s. to have additional lng. alix: very aggressive growth plans. the iaea says the u.s. could become the biggest supplier of all of their products go online. if that happens, do you have to lng,ce more, discount your do you have to get more price competitive in asia?

growthf you look at the around the world, requirements for the cleanest fossil fuels around the world, whether fossil -- china, india, other countries , in addition to europe and other areas, there is the need for everybody to produce more gas to cope with the requirements of the future. i think there is enough to go around and we need everybody to , to and have a good supply cater for the demand everywhere in the world. alix: short term you are one of the largest exporters of lng to europe. in that report, they say the european nat gas market has no room to grow until the 20 20's. if they have no room to grow, where do you grow? saad: there is some slight growth that has appeared in europe. all the growth is really tied to economic growth. there is slight economic growth in europe, some slight demand. i think there is a diversity that is required by the buyers

to have different suppliers of lng and pipeline gas in energy mix. i think there is room for everybody. alix: the other part of your business is oil, you are a part of opec. we have that agreement with russia over the weekend. how much oil will you be to get on market, how quickly? saad: we are a small or euro player, one of the smallest in opec. the agreement that was agreed on was basicallyc going back to the previously agreed to targets that were not reached. there was a shortage by the suppliers. think with the availability of capacity available to torybody, you can come back -- bring in about 600 to 800 million barrels into the market.

we will produce about 30,000 barrels. alix: how quickly? saad: immediately. we try to stay within the boundaries of what we agreed to have. but we don't have a huge pacitti to grow beyond another 50, 70,000 barrels. we will increase of 30,000 barrels immediately. alix: one of the reasons you are here in the gas conference is you have partnerships with a lot of u.s. companies, a lot of companies that have partnerships in qatar as well. have any of those relations and in affected by the trade rhetoric going around? saad: not really. it's important for the audience to understand the relationship between u.s. and qatar. we have 700 billion tons that we produce annually out of 4 trillion. billion of this is in partnership with exxon mobil. one is with conoco phillips.

only one out of the 14 is with anglo dutch shell. andhe time between qatar the u.s., the partnership they have with us as companies, we are glad to have with us, is very solid. this partnership is really going 30'srvive until the mid-20 with the contract we have in place today, and we are growing. alix: so far, so good. thank you, saad sherida al kaabi , qatar petroleum ceo. we will be talking more energy with sharif suki, who basically started the u.s. lng world. g investors still liking it. we look at the businesses that are still left and what could be left to sell. this is bloomberg. ♪ ♪

david: ge shares are trading higher in the premarket after it

announced plan to spin off its help your business and sell its stake in baker hughes. joining us now is charitable heart. it has been a long time coming but i guess we have the plan now? karen: yes. phase one was very unsatisfactory. might be thought there a phase two, and it's here and ask meaningful. understand they are selling 20% and then spinning the rest to ge shareholders. how much debt will they have to unload? that may determine the success going forward. karen: that i don't know. it is a pretty stable business, they will be able to handle a reasonable amount of debt. i haven't the numbers on that. the important part is the cash they will be able to pull out of that. to help solve some of their cash and liquidity issues. businesses,are given the stability, can carry a

decent amount of debt. david: in the statement, the company said this will move us forward by focusing us -- they called it a high-tech industrial company -- and also clean up the balance sheet. i understand they are looking for $25 billion in cash. don't they have $125 billion on the balance sheet? karen: there are assets and liabilities. they are also going to try to shrink that by $25 billion as well. , a lot the book value less than $100 billion in assets. of course, the assets associated with baker hughes and health care will shrink the overall asset base as well. david: so they will clean up the balance sheet. where will the growth come from? they are in aviation, obviously.

not a brand-new business. where are they going to grow? karen: it is a very profitable business, areas to grow in digital. that will notnot a brand-new bu. where are they going to move the for them. i think they will be a slower grower. probably a 3% topline grower. they are getting rid of the growthy business, health care. everything else that ge owned was cyclical which had ups and downs. year, slowede dramatically on down years. it will not look like a growth industrial to me when they are done. david: as a practical matter, it is not just the balance sheet but they have some accounting issues, including an sec investigation. are they going to be wrapping that up soon so they know what they are working with in the near future? karen: i don't have a sense of timing on that. they have already had to make some accounting changes in their long-term contracts. that was the result of a new accounting regulation. regulation --sec

investigation, the timing is uncertain. they may give us an update on the call but i'm not sure. thank you very much, karen ubelhart. alix: breaking news concerning harley davidson again. another president tweet. harley davidson should never be built in another country. never. their employees and customers already very angry at them. if they move, watch. it will be the beginning of the end. will be gone. they will be taxed like never before. seems like a threat to me. coming up, how trade is weighing on the natural gas market with charif souki of tulare. -- tellurian. this is bloomberg. ♪ what's a gig of data?

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pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. alix: this is "bloomberg daybreak: americas." yesterday have end and it was a big selloff. today it does feel like a little bit of calm. the s&p is flat, reversing some

earlier losses. 1%, but howup 0. strong is any rally going to be? it is still a story of save haven buying when it comes to the currency market. dmorgan sees that going to -- ax going to 15 basis points by the end of the year the vix -- the year. the vix reversing its earlier rally. 3%. york crude up by 0. david: zooming up there. [laughter] let's get an update on what is happening outside of the business world. >> and the u.k., -- is warning that burke -- carmakers are warning that brexit is holding the economy back.

the prime minister theresa may's government has been at war with itself for over a year on the terms of a brexit. the car industry powers about 1% of the u.k. economy. trade tensions between the u.s. and china are putting several projects at risk. china energy investment pledged almost $84 billion in shale, gas, and chemical manufacturing products after president trump's trade mission to beijing last november. the trading giant has canceled additional meetings amid escalating trade issues. staying with trade, president trump has accused harley davidson of a surrender in his budding trade war with the you. this -- e.u. this after harley davidson is said it would relocate some manufacturing overseas. and a tweet, the president said he was surprised the motorcycle maker would be the first to wave the white flag. global news 24 hours a day, powered by more than 2700

journalists and analysts in more than 120 countries. this is bloomberg. alix: thank you so much. if you have natural gas wrapped in any trade tensions between the u.s. and china, they both have quite a lot to lose. north america will add 160 billion cubic meters per year, which is equal to almost all of latin america's annual output. the u.s. will ship a lot about to china. joining us now for the inside track is charif souki, tellurian chairman. he was the first person in the world to say that the u.s. would actually export l.n.g. thanks for joining us and good to see you. do you think that l.n.g. gets wrapped up in a trade war? charif: it does not matter. we need to sell and they need to buy it. will are turning to the commodity business. once it leaves the shores of the united states, if china wants it

it will find its way to china. alix: do you feel like we are going to see more price competition because of that? charif: the central issue is still that there is demand for the product that the infrastructure is extremely expensive. -- extensive. we have not figured out the model that is going to allow us to build the next wave. you: the old school is that go to china and secure a contract with a chinese producer, and wind up selling that l.n.g. to them. that helps build up the pipeline and export terminal. charif: in 2012 and 2015, we gned 70 million -- si million -- 20 million tons of contract. it gives you an idea of how difficult it is. alix: the ce -- ceo of liquefied natural gas says that buyers are waiting because of the trade

uncertainty. if buyers wait, how do you build terminal? charif: you have to figure out a new business model. alix: that feeds into tellurian 's business model. charif: if a longer-term contract would come, we would take it. however, in a commodity business , why would you sign a 20 year contract for anything? you no longer fear not getting the molecules. you know that you can bet every day that there are 15-and 20 cargoes for sale every day -- 15-20 cargoes for sale every day. if you want to buy it, you make a phone call and you get it. there is no incentive for the buyers. unless it is so massive that they have to work on the logistics. alix: wouldn't china be considered massive? charif: yes, but they do not know it yet. alix: does that mean you would be more apt to sign a five-year

contract? charif: not at all. we think the key to success is bring the potential buyers, china or somebody else, as partners in the project in the united states. are value added is that we know how to do business in the united states. we can offer them very cheap gas, a way to put the infrastructure together and finance that in order to get the gas from the field to the terminal. on that basis we can save them a lot of money, and they can be our partners and benefit him any kind of cost advantage that we have. in a commodity business, it is crucial. alix: it sounds like china equity investors are looking into your proposal. charif: i don't particularly care. from a china standpoint, they are afraid of the repercussions of a trade war. they are skittish, but there are plenty of other people want to take the place, so it is not a

big issue. ceo ai spoke to see -- a few months ago and she said you could count on two hands how many equity investors are needed. how many are interested now? hands. we need your there are three types of partners that are very intriguing. one is the global utility that needs the guests on a large scale -- gas on a large scale. if you need one million or 2 million tons, stay in the spot market. a few are a large utility and you want to secure cheap guest for a long period of time, you have your ability to own reserves and united states -- in the united states, which yo don't have the option and other parts of the world. we are very predictable.

we have the ability to own stuff , the records are impeccable, we know all the information, so this is a tremendous message -- advantage. you have to get it from the field and bring it to the facility. traditionally it was to new york and chicago, but never have plenty of gas, so we have to bring it to the coastline. you give this to your partners and on top of the cost of capital, they can be for three dollars, very low cost. people whose business it is, so you have an existential issue, where do you invest your money? the majors have a very interesting problem. for the first time in five years they have money. five years ago all they were worried about was how to pay dividends and do i have to borrow money to do that? alix: exxon maybe not, but the other agers -- majors. charif: in a world that is now

shortened, i used to be able to do things based on 20 year view. today the volatility that you're talking about earlier, it is so fierce, and the timeframe is so short that i need better returns for a shorter amount of time. the investment in infrastructure in the united states is comforting, from that standpoint. alix: so majors, utilities, and? charif: and global players. they also wanted. that is the nature of the business. they are in the business of being intermediate between supply and demand. alix: if anyone of those were chinese companies, would you be up to say no? because you don't want to get wrapped up in trade issues? charif: no. i don't say no. if the government says no, that is a different story. alix: are you worried about that?

if a chinese partner for an equity investor comes in and the president says you cannot do that? charif: it is not important for us, because we have a lot of demand. it is not really matter -- does not really matter. given that china is in the process of overtaken japan as the number one energy consumer bad to world, it would be exclude them. the american producers that cannot avoid doing something with discuss, if he cannot produce come produces oil -- cannot produce, produces oil. set to have some very significant oil production, it is looking very good for you for the next 5-6 years. will are you going to do, start selling? i certainly hope not. ok, charif souki of tellurian, really great to see you. thank you so much. david: let's turn to some other

commodities. industrial metals are caught in the crosshairs of the trade war between the u.s. and china. copper and aluminum are weakening. zinc has entered a bear market. joining us now is bloomberg intelligence chief equity strategist, gina martin adams. what is causing this softness in the metals market? is a trade -- is it trade? andrew: yes, you can definitely boil it down to trade, lack of liquidity. you have copper rallying to a high a couple of weeks ago on the back of strike fears. the market is just not that tight right now. same thing for zinc. it was expected to make visible theto 4000 this year, but macro fundamentals are not necessarily supportive of the current juncture right now. the micro fundamentals similarly are not supported either. david: are we looking at some

softening of global growth anyway? andrew: i would say so, yes. momentum is definitely slowing coming off of a very high base, if you look at pmi's. how much higher can the u.s. pmi index go? people were worried about it turning. people were more concerned about the second derivative. things are naturally slowing. we don't think that the world is kind of falling apart at this juncture right now though. david: we turn to gina in london. is the world falling apart? peter navarro blundered a little bit. i don't think the world is falling apart. if you think back three months ago, when all of the trade policy rhetoric began, it was deemed to be somewhat intentionally inflationary. inflation expectations were breaking a bit higher, prices and the commodity landscape were

moving higher. over the last month we have really seen that come into question and prices are moving lower. inflation expectations are breaking lower. even the 10 year treasury bond and investors interpretation of the ultimate outcome has moved from one that is inflationary to one that maybe deflationary. i would say it is more of a question out than a certainty -- question now than a certainty. growth prospects in the u.s. are better or is it because the dampening effects of trade policy rhetoric will be less profound on u.s. growth than they are on the rest of the world? it is still a big question in the early stages. ourink we are shifting ultimate interpretation with respect to the ultimate outcome of this trade policy rhetoric. david: gina martin adams and andrew cosgrove from bloomberg intelligence. coming up, more pain for emerging markets. will turn our focus on argentina. you can turn on your radio to

hear our colleagues tom keene. you can hear them in new york, boston, the bay area, washington, d.c., and all across the united states on sirius xm radio. live from new york, this is bloomberg. ♪

♪ alix: this is "bloomberg daybreak: americas." i am in the hewlett-packard enterprise greenroom. coming up later today, representative kevin cramer, republican congressman from north dakota. this is bloomberg. ♪ alix: emerging markets hurt as trade fears take up -- tick up.

he will spend the week looking at countries that in addition to the macro, have unique issues to define the problem and find opportunity. today our focus is the argentina -- is argentina. the argentinian peso continues to slide following a deal with the imf. joining us now is patrick gillespie, bloomberg reporter. how did we go from that to a bailout of the imf? argentina got hit by a perfect storm of volatility, rising interest rates, the rising dollar, and there was a growing concern about the central banks credibility. there were concerns about argentina's fiscal deficit and external financing needs. it had a lot of dollar-denominated debt. it was a mixture of a global volatility and central-bank

credibility that hit the peso and now it is the worst performer in emerging markets for this year. alix: it was all about being business friendly when the new leader to power. what happens to some of his goals like cutting inflation and lowering the poverty rate, removing subsidies, which really did not work when it came to oil, for example? patrick: he has done some reforms. he has cut some export taxes and tariffs. he has normalized the exchange rate. macri is trying to juggle all of these things are now. he is trying to cut inflation and it lower argentina's fiscal deficit to 0% of gdp by 2020. those are very difficult because when you cut fiscal spending you are lowering subsidies, making prices go up. inflation is on target for 27% this year. it will be difficult for him to

cut inflation and lower the fiscal deficit. it is a big part of this imf agreement that they just struck with the international monetary fund. fiscalna has to cut spending significantly next year, which will be difficult because it is an election year. david: patch a gillespie, bloomberg news -- patrick gillespie, bloomberg news, thank you very much. will put up a terminal showing you what the peso has done over the last 18 months. this is dollar against peso. the higher the line goes, the weaker the peso is. the vertical line is when they increased rates and the orange up. shot they announced the imf deal, this blue line, it still went up. and only recently trailed up as they got a new central bank had. joining me now is mauro roca an on the telephone from argentina is bruno binetti, inter-american

a dialogue research fellow and former congress and legislative aide. let me start with you, mauro roca, to explain what is happening. is this basically mismanagement? mauro: no. i think this is the result of a government having a very officult legacy in terms macro economic bounces -- balances. there is an important political restriction in order to apply the policies that are needed in order to correct those bounces. there is no clear way of how to get out of populism. argentina's trying -- is trying. they seem to be going as slowly as possible so as not to have any political backlash. at the end of the day they had to go to the imf. the result of going to the imf

is not only having an important financial package at a very low rate, but also to have a more as astent policy mix result of the program that needs to be implemented in order to keep getting the funds from the imf. david: there was no question that macri had it tough job in front of him. at the time they believed in the plan and everything. do they still believe in the plan or did they have a new one? mauro: the new plan is in agreement with the imf. looks for faster fiscal consolidation, looking to get back into the primary fiscal balance by 2020. the more gradual inflation acceleration. on top of that, you have a chart that there has been

an important depreciation of the currency. is undervalued today. there is a new plan more consistent and with more credible -- which gives more credibility. now the challenge will be on implementation. ishink that main restriction still on the political front. that is going to be the challenge. alix: talk to us about the political front? his change -- team has changed quite a bit. does macri have more or less credibility now? bruno: what we are experiencing in argentina is a result of excessive optimism. macri announced that the worst was over when he was elected.

that is clearly not the case. that said, he still has around 40% approval rating, which is pretty high for president in argentina. we have to remember that this is a coalition government that is in the minority in both houses of congress. it is not patrol most provinces. with the government would try to do now is a just expectations to try to accelerate as much of the economic adjustment as possible in order to be in better shape next year when there are presidential elections in october. alix: when i don't quite understand is when the energy minister at a time was all about helping oil companies trying to become more copper profitable -- more profitable. he left and it new guy would not have that kind of track record. how does macri keep a business friendly environment? bruno: that is a good question. there is a new energy minister.

the thing is, at the same time as macri has to accelerate fiscal consolidation, he has to make sure that the social front is taken care of. indid a terrific job adjusting public utility to s toal prices -- bill actual prices. in this new era that the government is entering, just keeping, adjusting publicly toady rates -- ility rates is not sustainable. you cannot also increase what people have to pay out your city while you are cutting spending. what they are trying to do is pretty difficult, but sending signals to the business sector that the reforms will continue why the same time keeping those reforms socially sustainable. alix: bruno binetti of inter-american dialogue and mauro roca of tcw group, take you very much.

this is bloomberg. ♪

♪ this is where we talk about what we are watching today normally come but i already know what you will be watching. alix: i will be watching what is happening with world gas. the industry leaders at the global gas conference in d.c., including your program at 12:00. how easy or not is it to build a natural gas pipeline? holiday, doing the david. coming up is "bloomberg markets: the open." this is bloomberg. ♪

jonathan: from new york city, i am jonathan ferro. this is the countdown to the open.

coming up, white house trade adviser peter navarro seeking to ease investor concern. stocks finding some stability. unease bleeding through chinese markets. raising questions about china's willingness to fight a trade war. xi vowing to strike back. feature set up as follows. go absolutely nowhere, positive a single point. treasuries rather stable over the last couple of days. 2.88 on the u.s. 10 year. president trump threatening countries and companies with tariffs and taxes. >> the markets are saying wait a second. a lot of the big