>> another risk off day in the markets and all about the consumer, bloomberg markets is starting now. ♪ kriti: let's dive into the price action, a risk off tone across the board carlin the s&p 500--board.

the s&p 500 cannot nasdaq -- large cap stops taking the hit but the other sectors are of no exception. you a major pullback and this is coming off of 2% gains yesterday so some of this will be a natural pullback. some of it will be conviction selling and we are seeing that. put this in the perspective of volume, volume is down compared to the five day average. it brings the question how much of this is conviction selling. here's how you know it is a risk off day. the 10 year yield down seven basis points, different than the idea of 10 or 12 basis points we have seen in the last couple of weeks yields arebu lower. t -- but yields are lower. the dollar catching up. but it is higher as yields are lower. they have usually been tied at the hip. nevertheless, we have to talk about the risk off move. if you're concerned about

growth, you are selling out of your oil contract and it is down 2.3%, brent crude trading at about $109. let's dive into the selloff, and a lot of this driven by the consumer target, dropping to the lowest since 1987. emphasizing the margins. joining us are gina and printed, the dream team you want when you want to cover a lot of these retail earnings. let's start with the big question, when it comes to margins. i want to start with you and talk about the margins you are seeing from target and walmart, both have said there is a margin squeeze due to higher food prices, higher food best fuel prices. you've done a lot of work on markets, is this what the market is trading off? gina: absolutely. it's a combination of margin pressures that were prominent in the first earnings quarter, but

also a reassessment of expectations for what we are going to see and quarters ahead. one of the most telling things is to look at the overall retail space coming into this quarter. investors and analysts were expecting about a 7% drop retailers at-large, now greater than 20%--25% drop. a lot is amazon but target and walmart are nomadic of what is happening in the water retail space, true margin crunch resulting in vicious downward estimates, for future quarters of this year. kriti: brendan, when you are live blogging you made points in terms of international sales. this is about the international consumer, if you look at walmart sales from yesterday you made the point that those international sales are declining. how much of the currency picture

we need to be aware of? brendan: what walmart really talked about was demand in china with lockdowns. that hit them in the chinese stores and kept their international results despite good numbers from their biggest markets. one thing they do not talk about in terms of china was factories being closed, transportation problems, that is something they might get into in a couple of months" pullback and affect them in the u.s.. -- months and it could come back and affect them in the u.s.. kriti: target and walmart have said there is a major inventory buildup. should we be concerned about what happens next, if the supply chain gets healed and you have this lower demand, does it

accelerate the slowdown we are seeing? gina: it pressures the earning results of retail companies specifically. we think broader slowdown, we want to be careful not to extrapolate what is happening at retail with some simple of what is happening for the consumer at large. the consumer is spending a lot on services and is just getting back to bed. but inventories are able super goods focused companies, retailers of the world. not only do they have an inventory, probably a big one to contend with and lumpy inventory as a result of supply chain constraints, but you also have interest rates rising. it is key to this point in the cycle that we need to consider at the point when interest rates are rising and consumer retail is typically one of the weakest components of the equity market. we have greater pressures than we usually do at this point in the cycle but we should be expecting a week retail environment to emerge particularly relative to the

next year, their time to shine. we are seeing an overall transition away from goods and that is adding pressure on retailers in addition to the inventory story. kriti: what is the inventory sorry to you, brendan? when you look at their inventory to sales spread, target, walmart, there was this nugget from target that said increased headcount and compensation affected this, in the distribution centers. why is it that some of the warehouses and inventories are aware of some of the margin snags? >> that's exactly right and they let inventories get too high. in a context in which they wanted to build inventories, target, walmart, costco, home depot, these companies were renting their own chips to move goods and keep the shelves stocked. if you go back about nine months, the big worry was will

there be enough stuff for people to buy. what they've ended up with is a situation where target has been having to markdown goods to move inventory. the ceo of walmart said yesterday they like inventories to be high but who grew that should but have gotten too high. salting last year's problem got them through the peak shopping season at the end of the year, but now it is coming back to bite them because they just got all of this stuff they're having to markdown. kriti: a final word here, we have to talk about some of these stocks getting punished. we have seen this with a lot of big tech stocks but with retailers, 25% drop on cutting the profit outlook seems extreme. gina: it's excellently -- absently extreme but reflects the investment universe had been

hiding in some of the consumer space as a defensive safe haven, and in the consumer staples names, not as much retail as the helpful products but it is performing abnormally well relative to the s&p 500 in this defensive flight to low beta sectors. but it happens to also be one of the weakest fundamental segments of the index. you can see this greater situation occurring as investors flee this area of great risk. kriti: gina martin adams of bloomberg intelligence and brendan case who covers big-box retailers, thank you. consumers are feeling the pain but with the oil volatility stabilizers, prices at the pub are not stabilizing at all. it's over six dollars per gallon develop the take in some parts of the country may not much duties pressure. joining us is our oil markets reporter. why are gas prices so high if

oil prices are starting to stabilize? >> that's a great question and the answer is you have had an influx of crude. you have seen this all increase but the strategic petroleum reserve do not include refined products so that needs to go to the refinery to become gasoline and diesel that people used to drive. -- use to drive. in 2020 we shut down one million barrels of refining capacity. even though producers are trying to wrap up and refining is still up, it is still difficult because you don't have the capacity you had before the pandemic to be able to churn out gasoline. that is why prices are high despite oil prices tampering down. this is also going into the summer driving season. not only did russia invade ukraine and now we are trying to

export diesel to europe, we need it in the u.s. as driving season starts. those are things making it difficult for prices at the pump to go down when crude has gotten range and gone down five dollars today. kriti: it's interesting, these show you the refining margins, a lot of these refiners are making a lot of money but way it shows there are shortages with these products, is there any way to alleviate those? >> the issue is also labor shortages. that will be a huge issue and people that see away to get out of this until you address labor shortages and products shortages . we will have to wait and see what happens. kriti: julia, one of our finest oil market reporters, thank you. time for news with mark

crumpton. matt: -- mark: large parts of the united states are at risk for summer blackouts. a report from the northern american liability corporation suggest that electricity demand is growing after two years of pandemic disruptions. finland and sweden have made it official and applied to nato membership, reshaping europe's defenses. they must overcome opposition from turkey, the president alleging that both countries support turkish militants who turkey sees as terrorists. the biden administration is set to bring russia closer to the brink of default. the u.s. treasury department will move to paul brush fully block the ability of moscow to pay bondholders. they issued a temporary waiver

to let russia pay. expires the 25th. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. [speaking foreign language] that's -- ♪

kriti: this is bloomberg markets, i'm kriti gupta. we are seeing a taste in a slowing economy, housing and building permits flipped in april as supply chain desha supply-side challenges and the steepest mortgage climate kickoff. let's talk to veronica, thank you for joining us. let's dive in with what the markets seem to be interpreting. there's a different between an outright recession, a contraction, and a slowdown in the economy. but it seems like the markets are actively pricing in a recession. are they right to do so? >> the forward-looking nature is

going to be one step ahead. in the next six months or so, we are not worried about the sessions in the near term, but markets are right to react to a more hawkish fed in a step that might have to it raises concerns. kriti: when you look at inflation, you should have to parse in two categories, the postwar inflation of commodity drive, higher food prices, and the prewar inflation of used cars or witches, is it fair to celebrate the two -- separate the two? >> yeah, and we should look at these drivers the fed initially said were transitory. there was some expectation of maybe we would reach peak inflation, but we had cpi data

last week for april and i don't think we are at peak inflation yet. there's much more driven by services now. it is becoming a thing. kriti: it's interesting we talk about inflation and a recession tied together, europe in particular it seems like recession was a foregone case. if you start to see weakness in china in europe which we have already seen, is it guaranteed that it drags down the american economy with it? >> we would say that u.s. economy is less -- but i would not suspect the rest of the world would be seeing that. we see a deeper slowdown in growth in asia. i don't expect to see this too

long. kriti: it feels like that thought process, for other market strategists, the idea that it rests with the consumer and a wonder to what extent the wealth effect plays into that as more americans see a higher wage increase at least nominally. how does that prevent some demand instruction -- disruption? >> the wealth effect is probably limited, at least for the time being while the labor market is so strong. i think that is the most important driver for the next six months or so, you have a strong labor market. you have a low unemployment rate, incomes that are still outpacing inflation, and as long as that is the case, consumers will stay healthy. kriti: let's talk about the

drivers in terms of pressure and incomes, nominal or real. food inflation and oil. six dollars of gasoline -- in california. also looking at food prices globally at a record. which is the bigger part feis issue? food or oil -- the bigger issue? food or oil? >> it is a good question, food has a higher weight in cpi but it's easier to ship away from consumption of energy, transportation and some parts of the country. the american consumer is possibly even -- more of the disposable income goes to food. have to ask about the stimulus effect. there is such big consensus

around the stimulus effect ending at summer 2021. we have seen that extent. is that in the rearview mirror? >> we did get a large boost from consumers and that is part of what is driving inflation. stimulus has ended at this point, but consumers do still have savings. they do still have credit card balances. there are some momentum there. you're probably not counting on that to drive future consumption. kriti: veronica clark, always a pleasure, we will continue the conversation on the battle to fight inflation, michael mckee spoke to the chicago fed president about the best course of action. take a listen. >> i think it is useful to frontload our policy settings.

we did it at our last meeting and it's likely that it is at the next meeting and thereafter. once we get to a good setting for the funds rate and we can after that do a more measured pace of increases, 25 basis points at each meeting after that, it would be a nice shallow path that would give us time to assess the incoming data and know exactly what we are facing. if we do a little more sooner we can get to the point where we can do the shallow path or maybe we take 50's a little longer. but i think something like neutral by the end of the year, whether or not you get there sooner or earlier is not that critical, it is being well-positioned to address the problems we expect to face in 2023 that is my first concern. >> how far above neutral do you think you may have to go to get the results you want? >> we don't have to console he increase the funds rate to be restrictive. we can sit there for a while.

maybe longer at a rather -- less restrictive setting. it takes a little more time for inflation to comes -- come down, many factors have led to the inflation rate we have faced so i'm hopeful we will be facing core pce under 3%. kriti: chicago fed president charles evans is speaking with michael mckee. a look at some of the biggest business stories in the news, tesla has lost its place on the gsp -- gsp version. tesla's environmental, social and government standards have remained stable but it has slipped down the ranks against companies that improved. also concerns about the working conditions and crashes. goldman sachs is losing its most powerful black women according to a report from the bank. they had 19 black women among executives and senior officials as of november 2021, down from

one to five, the 24 black men stayed the same. the overall percentage of employees rose to 7.4%. the u.s. is forcing wall street banks to -- the largest ever and give education -- investigation into secret messaging. they will decide who gets to preserve these messages and unapproved platforms. as your update. the great inflation debate from the director of global macro strategy at don't ask -- at stowe next. this is bloomberg. this is bloomberg. ♪ the more efficient you become. such amazingly perfect shapes run throughout the natural world.

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kriti: this is bloomberg

markets. i'm kriti gupta. something that caught my eye, inflation getting higher, costs rising around the world. here is something that caught my eye. the fed misery index, a combination of inflation and unemployment, at a 30 year high. you can see this going all the way back with this major spike up. but we haven't actually seen this low of a dutch seen this since the late 80's. the question for economists and strategists is do you have the same parallels you are seeing at the end of the 80's, the growth boom at the end of the 80's? is the picture there -- fair to compare? we are seeing this major move and a lot of that driven by inflation, not necessarily unappointed. even as we talk about extremely tight labor market, what happens if those fears about demand destruction and recession come to fruition? that is where you have to keep an eye on this metric because that is not just about rising prices but the potential of unappointed.

we will talk about this next, vincent joins us, but david solomon of goldman sachs brings his take about the message to the market. this is bloomberg. ♪ as a main street bank, pnc has helped over 7 million kids develop their passion for learning. and now we're providing 88 billion dollars to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you.

welcome to the bloomberg audience. this is first word news. the nato secretary-general said today that they military alliance stands ready to move quickly and allowing finland and sweden to join its ranks. that is after the two countries submitted their membership request. >> all of us agree on the importance of nato enlargement. we all agree that it must stand

together. we all agree that this is an historic moment which we must seize. >> applications were handed over by the sweden and finland ambassadors. it set a security clock ticking. russia, who is at war with ukraine, spurred them to enter the alliance and it warned that it wouldn't welcome such a move and would respond.

from russian oligarchs to rebuild the ukraine. the eu also proposes issuing joint that. the foreign minister told his european counterparts that the reconstruction bill could reach $1.1 trillion. inflation in the united kingdom has risen to its highest level in four years. consumer prices surged 9% in the year through april. a big chunk of the increase came from a rise in energy prices. all of that will add to presser -- pressure for the government and the bank of england. the united states soccer federation has become the first national governing body in the sport to promise its men's and women's team equal pay. that ends years of acrimonious negotiation. it will also pool international payments for the world cup, so men and women are paid equally for that competition. global news, 24 hours a day, on air, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. >> welcome to bloomberg markets. >> let's get a quick check on

price action. no matter what asset class you look at, the s&p 500 is really taking it on the chin. this is a pullback from yesterday's massive gains, but it is also selling to the tune of 3.4% in the last 30 minutes. we have seen acceleration in the u.s. equity benchmark. but look at this. you are seeing a similar message in the bond market. instead of cashing out, they are buying in. it is down almost nine basis points. keep an ion the dollar. this is where the dollar yield story to purchase. more people are hopping into treasuries. they're also hopping into the dollar, we see strengthen the bloomberg dollar index. at the end of the day, if the concern is recession and growth, it will show up in the commodity sphere, that is where it is to the tune of 2.3%. john: if you go under the hood with stocks on the hood, they are battling with retail, and they have talked about the

inflationary impact. obviously, walmart, reality check on how they are dealing with cost us, target with a similar message. we have seen a huge decline in that stock. it is down more than 25%. this news just came along with retail names along for this downward ride. cosco, dollar tree, best buy. the list goes on. we are seeing growth names under pressure, but consumer discretionary pieces are alive and well because of these inflationary effect. kriti: it is interesting to see just how much the stock market has been punished for it, but inflation is the top of the mind around the world, as well as questions as to whether the fed is doing enough it take a listen to what our bloomberg columnist had to say about it. >> stagflation is the worst for central banks. especially for the fed. it gives us to objectives in conflict with each other. that is why a lot of us want to avoid the situation.

it was avoidable. that is what upsets a lot of us. it was avoidable, had the fed not stuck to its transitory characterization. jon: the goldman sachs ceo says that clients are gearing up for eight growth slowdown as inflation takes its toll. he spoke with bloomberg, who joins us now. it was a great conversation. feeding off of what we heard, about stagflation concerns. solomon is talking about the tax on society that comes from higher prices. >> he talked about that tax being a higher toll on lower income, getting paid paycheck-to-paycheck, week to week rated he talked about that in terms of punitive inflation, and it was strong language for someone who is been talking about inflation for many months. last time he was the strong about inflation was back last year. this is been a sound very long time.

i also want to point out that january conversation that we had with a large investor in new jersey about whether the fed would move expediently enough to control the inflation, and as you rein in today, look what is happening. i have some comments coming in from goldman clients. hedge funds and the like. they are really talking about the comments here, and a more hawkish tone from the fed. the ability to control inflation at a time when recession fears are also looming. >> 60 seconds. what is the big deal for goldman. recession or inflation? sonali: david solomon told me he is not overly concerned about inflation. he reiterated that the economists have been a view of a 30% chance but inflation is extremely punitive. that is the wording here. watching forward with any cracks in the credit market moving

forward as thing starts to deteriorate more. kriti: we have seen credit spreads widening as well. we thank you. joining us for more on the inflation topic is vincent, the director of global macro strategy. we have a reporter live in our studios, visiting from washington, d.c.. we thank you for visiting. here is a simple question. is the inflation peak in the rearview mirror? vincent: i think that is a big if, given our markets. i would say yes, but it doesn't matter. whether the peak was in april, or march. at the end of the day, the story is the speed of disinflation. especially, compared to what we need to get by the fed in 2023. anyway you look at it, if you

break up the index, i don't see how we get to 4.5% by the end of the year which is what the fed would need to cut the rates. so yes, it will slow, but it will enough. jon: let me bring you into this conversation as well. the piece i'm trying to figure out is what is the timeframe for having cash in your pocket? we are having the same conversation in canada for anyone who is able to save up some money. over the last couple of years, obviously, the longer this is -- inflation story plays out, the harder hit the consumer ends up being. what are you seeing? >> when we talk about the fed goal, we are talking about core inflation, except for what americans are facing. higher prices at records, and higher food prices, which i might say that my colleague had a great story about how those food costs are set to keep rising. when you look months ahead, you

see retail sales coming in strong. it is really exciting, and on the surface, you think great americans are spending on discretionary things. that is awesome. but it was also paired with a more concerning jump in credit as well. we actually saw credit jump by the most on record in march. it is fueled by folks trying to keep up by putting on their credit cards. that implies that you will see some sort of slow down at the your moves on. if you are trying to support all of this on credit cards, it will definitely be interesting to watch is remove for. you bring up the spending picture because i have to ask you, the stimulus story is in the rearview mirror. is it done in terms of fiscal help that a lot of americans are getting? reade: yes. and we have for a couple of months now. americans have come to rely on

stimulus checks which pumped up their savings, but those child tax credits, which was a good bit of money coming in every month, and we saw it in the data, a kind of falloff in income when we got to january. but now, people are facing these really high prices, they haven't seen their wages. if you look at real wages, we have 13 straight months of folks falling behind. people are really starting to feel the pinch. when you put that on top of higher bar costs as the fed rapidly increases rates, we have seen mortgage rates skyrocket and we know that reddit card rates will rise as well. it is definitely a looming picture for the consumer. jon: one of the big questions is how much is getting priced into this market as we continue to look at the s&p 500. weakness on the day today for the markets live blog on bloomberg. simon whitehead some interesting analysis. looking at what happens to the

s&p 500, ahead of recessionary situations, knowing that what we are watching looks very similar to the. before 1973 through 1975, how do you approach the economic concerns given the market pressure we have already seen? vincent: i think you bring up the right analogy with the 70's. it is to think of this same way we thought about 2018. the fed is over tightening, and eventually, the welcome back will work its way through, and the economy will slow, and the fed will come back and save the day. i think this is a different beast. in terms of valuations, without getting that much more attractive, it is rising at the same time, so it is an equity premium it it still historically low. kriti: does the fed have to

break the back of the markets this is deal -- to steal from the great vulgar, tooth break the back of inflation. the chairman powell have to break the back of the markets to be perceived as successful in tackling inflation? vincent: absolutely. that is the problem from 2018. if you look at the causes of inflation, it is nothing the fed can do anything about the supply chain, shortage, right? what they have is the wealth effect. it is a very good tool. it is a very efficient tool. it is only loosely related to inflation, so whatever our difference to that is financing conditions. what he is telling them [indiscernible] if you want to stop inflation, you have to do a lot of it. so i really think instead of having a fed quote you have a

hope. if it does rally, you will see it come back and there'll be more hiking, but on the way down, you will not have the protection that the market expects. jon: lots to continue watching. we appreciate your insights, and you are the director of global macro strategy at stone expert we appreciate your insights. we are live in panama city where the bloomberg new economy gateway latin american conference is well underway. we will have full details coming up. this is bloomberg.

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>> this is bloomberg markets. inflation struggles are impacting just about every country on earth right now. latin america is no different. bloomberg new economy gateway is underway in panama city. it brings together government leaders to talk trade, supply chains and more. it's where we find caroline. she joins us from panama city. thank you for taking the time. what do you hear at this conference at a time where inflation really is the one and only subject? caroline: it is, as is the strength of the united states dollar. those subjects are coming asked imperious as people worry about whether latin america does turn out to be a gateway that many want to see it be. we are set at this wonderful hotel on the beach in the sea. don't cry for me. it is pretty great to be here. but i am looking at the ships

that are currently stuck out there. they are waiting to travel through the panama canal. there is one is way above average for this time of year, and this, as the supply chain are making an aggravating inflationary pressures so much more. you have to remember that latin america is our tale of the haves and have-nots. brazil and chile, for them, it is making hay. they are able to make the most of that dollar that they are getting for their exports. for importers such as panama, where you have a massive migration issue, people traveling through jungle and much distress to be able to enter your country, what are you doing when you see costs rise and it is so difficult to import at this moment? jon: even if it wasn't busy, which it is, at the panama canal, it is such a fitting backdrop we are talking about the influence it has on the global trade story of the last couple decades. watching this enter the market

moves, and they are waiting on stocks. you alluded to inflation, and there was a strength we have seen recently. it is a reminder that what is happened in the markets everyday also is that conversation around trade in latin america. >> this is why it is a global conversation. you dominate so much, and we will be sitting down with the head of foreign affairs and panama. we will be sitting down with the panama canal as well. these are the sort of people's, a economist by background to not serving their countries, and the ongoing pressures as far afield for them as russia and ukraine. what that means for the cost of their oil and for the trade flows, are we seeing the panama canal as a big move into the east coast to alleviate that pressure on the west coast? particular ships travel through the panama canal through asia. what is it looking like right

now? how many are we seeing? that is a key for the canal at the moment. the liquid financial gaps. jon: looking for those conversations. caroline hyde joining us, and we will stay on this inflationary theme, coming up. is the ecb making a policy mistake and how it is dealing with credit? we will be joined with that take, next. this is bloomberg.

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feel more refreshed in seconds with dual fans that actively deliver a clean air flow or you can wrap your back in the soothing warmth of heat therapy and access four combinations of massage for deep relief from tension. our patented dynamic variable lumbar support and scifloat infinite recline technology remain unchanged. order an x-chair with elemax today. use code tv and get $50 off plus a free foot rest. hey, change happened and we've made it a good thing with all new elemax from x-chair. now the future feels better than ever before. order x-chair with elemax today. use code tv and get $50 off plus a free foot rest. jon: this is bloomberg markets. i am with kriti cooped up for for what it's worth. i want to highlight this as we look at inflation stories across

the world, including in the united kingdom, we see inflation levels not unlike the times of margaret thatcher. through april, with a 40 year high, with a societal impact, food banks are getting busier. john sat down with francine lacqua on how the cost-of-living squeezes hitting consumers around the world. >> as we look forward, there will be a deceleration. we have two central scenarios. one is a significant slowdown, and the other is a depreciation print we are seeing a significant slowdown, although, europe has not been affected beyond prices. what we are seeing is inflation being the precursor of more inflation as biting. we see low income or lower

income families really difficult to deal with the rising cost of energy. we also see companies that had investments or that were dependent on energy or on brand to a certain extent. the whole value change has been completely destroyed. so, they need to reassess their us position, with changing their sources, redesigning their models, but at this point in time, this translates solely into a slowdown of investment. we do believe, going forward, it will be a lot more disruptive. francine: do you worry about a policy mistake from the ecb? if you have this recessionary environment and they don't raise rates, what happens to all of your italian or european clients? andrea: it is a tricky

environment for the ecb but also the united states. on one hand, you have inflation, but it is generated by a specific statement of the economy. like energy. i'm not that sure that raising rates a lot will coal them down because it is very concentrated and it is linked to dislocation big -- between our friendly map. the rest of the economy agrees that it is slowing down and tilting towards a recession. raising rates creates an issue. so it is very tricky to manage, and yes, we are concerned about finding the right balance. getting to more neutral stances, toward zero, is probably ok. the moment you go up a lot from there, it depends on the rest of the economy. kriti: you can watch the full interview with francine lacqua on your bloomberg terminal. it is fascinating what we are talking about here. quickly, the narrative is gone from higher places -- prices,

inflation, to demand destruction, and the entire economy, the global economy, into turmoil. jon: it's every country. in canada, we got a decade high for inflation figures. if you look at store-bought foods, stuff you get at the grocery store, prices are up 9.7 cents on average for the last year, and just getting back to the market story, what have we seen in the markets today? we have seen a target, and the walmart stock breakdown as these major players are reminding us of the inflationary pressures, and even in the canadian market today, a lot of these retail stocks that have been hanging in are seeing the same kind of deterioration on these concerns. kriti: were talking about developing economies, but even in emerging markets, food and commodity inflation was way before we were sticking to the vocabulary of transitory inflation. here we are, looking a persistent inflation, and that

is arguably something the market is pricing in. the s&p 500 is down 4%. the nasdaq is animals 5%. take a look at what yields are doing. down almost 11 basis points in the 10 year yield, so a lot of pain in the markets, and how to play this inflationary environment. we will stick with all of that. this is bloomberg.

>> breaking market news down under pressure. it is 2:00 p.m. in york and 7:00 p.m. in london. live from bloomberg headquarters, this is a special edition of bloomberg market the close. romaine bostick is off today. >> i am caroline hyde. at the latin american conference we are bringing together the region's visits, and we are talking about everything the market is talking about.