kriti: stocks wavering as the fred best fit is getting repriced. i am pretty group do, bloomberg markets starts now. -- kriti gupta, bloomberg markets starts now. let us dive into the price action, red across the board. the s&p 500 shrugging its shoulders, not telling us a whole lot. no real narrative. that is the story, the s&p 500 is weaker on the day by 2/10 of 1% toes you no one really knows what the trade is except maybe julian emanuel. the bond market is where is, 10

year yield getting close to 4%, hitting 4% of the data earlier today only to retreat. technicals and play for the bond market, how much are the round numbers driving the trade? in the coming weeks as we march away to the payrolls report, 399 on the 10 year yield, higher by seven basis points. the dollar not following, interest rate differentials are no longer the currency trade. weaker by 5/10 of 1%. that is coming from the equity market, but the macro versus micro as we near the end of the earnings cycle, is macro back in the driver's seat even with speculation on the fed? hawkishness does not equal equity selloff. >> good from an equity perspective would be clarity. that will take an accumulation of data over the next three to six months to get a sense of, is growth or inflation driving

rates? then equities can respond. if yields are rising because the growth outlook is improving, that is ultimately a net positive for equities. if yields are rising because inflation risks are getting away, that is the opposite outcome. that is why i think equity investors are sort of in a holding pattern, because we do not have enough information to make that call. as i mentioned over the weekend, i think people are deciding to take the negative view regardless. kriti: let us kick often market analysis. let's start with what he was talking about, the idea that yields are driving the stock market reaction, except they are not really. jess: they are not, especially when you look at gains versus declines. he saw pressure toward real estate even though discretionary is there. looking at technology, not the typical movement we normally

see. especially if the 10 year is topping 4%, you think you would see a bigger move. they are all having their investor day after the bell, so you are seeing movement and pressure in that sector. kriti: earnings and that fundamental behavior is, to some extent, driving the trade. it feels like macro is in the driver's seat and technicals as we get closer to 4000. jess:'s -- the s&p 500 broke below the two day moving average, we talked a lot about the upward trending line from the october lows put in place. it was in danger of breaking below that. it moved back above that briefly, but it will be keyed to see where the s&p 500 closes today to see if the uptrend line is intact. that brings the bulls case as far as the upturn remaining higher. kriti: a lot to digest, jess is going to stick with us. julian emanuel with evercore.

the uptrend that jess was talking about is something that has been thrown a lot of cold water on since the rally we saw in january. do you do from here? -- what do you do from here? julian: we have to acknowledge the s&p 500 has done absolutely nowhere for four months. we are stuck between 3800 and 4200 -- my apologies, i will beg to differ a little bit on the effective interest rates on stock prices. it has been a constant since the top of the market in january 2022 that if yields go higher, stocks go lower. it does not always work took for ticket, though there are times that it does. you look at the last several days, the pressure on yields in the u.s. is coming from europe. we see a lot of hot inflation data out of europe, that has caused the pressure and fed into

the selling. this is where stockpicking rules supreme. the longer you go sideways, the more companies and themes are going to differentiate themselves from each other. jess: i am glad you brought up stockpicking, something i noticed from an equity team story, the correlation between growth and value stocks has jumped to the highest level since 2005. how challenging does that make it for stock pickers to find some sort of market dislocations when you have a diversions like that? julian: i am not so sure about that data. honestly, if you look at going back to last year, value outperformed growth very substantially. if you look at the first couple months of this year, growth has outperformed value quite substantially. so i would differ with that. the question is, where do you go going forward? from our point of view, the fact

that yields have moved the way they have with seemingly no end in sight and we know the fed is likely to hike twice, three more times before it looks around and decides to pause, that says the value orientation is likely coming back, particularly since we saw it really peek at the beginning of february when the names that were the biggest losers last year went up to 20% outperformance over the biggest winners. we think there is more training to be done. kriti: context is everything. the rally came in the context of a year of carnage. when you are talking about re-acceleration in yields, how much of that is a positive sign about growth in the underlying economy, which should be kind of a tailwind for the equity market as well? why are we not seeing that? julian: we think the message of higher yields is not terribly connected at the moment to the

idea of growth. there was residual concern that inflation was seeing the data out of the u.s., let alone the data in europe, that tells us there is more work to be done. we understand that and acknowledge it, the confidence coming into january with the better inflation data that there would be an endpoint, that this would cool down. which we think is going to be the case later in the year, has been shaken for now. you're in the show me phase, we are focused on inflation. at the same time, there are signs accumulating for what it hyman -- ed hyman expects a second-half recession. jess: you think this is going to be the euro volatility. a little above 20. i was looking at the gap between the volume ratio and the other

ratio widening toward the end of february, widest since 2006. do you think that is what that is showing and we should expect to see more big swings potentially coming? julian: to say the volatility markets have been strange for the last couple months is maybe the understatement of the millennium here. if you go back to december, you saw a surge to all-time highs, 100 times out of 100 in the prior 30 years would have meant a new bull market. that has come into question. in february, you saw a surgeon call volumes that you have not seen since the meme stock in 2021, which 100 times out of 100 would have told you we are likely to retest the lows. the truth is somewhere in the middle. a lot of the reason is difficult to concern -- and discern is because of these expiration

options that are ruling the moves from moment to moment in the markets, but ultimately it is our view that when you think about the options markets, macro is going to reassert itself. we just have to see how the data develops. kriti: what is the trade, what do you buy? julian: for us, we continue to want to stick to energy, it has been shunned even though the earnings trajectory is good. but we like the stocks called val mento him -- valmentum. in an environment like this across an array of sectors, those are the kinds of stocks you want to own. kriti: you heard it here first. julian emanuel of evercore and jess menton, we thank you.

>> russian critics of president vanya putin have spent the past year pushing the u.s. and allies to push sanctions. now, they want to clear the way for those who come out. many tycoons are challenging the legal basis for including them on western sanctions lists, none have succeeded. antony blinken has no plans to meet with his russian and chinese counterparts at the g 20 in india. relations remain frayed over the war in ukraine and u.s. allegations that beijing may offer moscow weapons or aid. he told he may participate in a group session at the meeting alongside diplomats from other countries. in nigeria, there is a winner in the presidential election. they face shortages of domestic and foreign currency and widespread insecurity. nigeria will spend $13 billion on gasoline subsidies this year.

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kriti: this is bloomberg markets. let's focus on the outlook for private credit in the risks and opportunities to invest. joining us is daniel pietrzak over at kkr and sonali basak. sonali: thanks for joining us.

there is a lot of interesting concerns in the market when you think about credit. you have a broad view of the economy, what are the stresses you are worried about as we work through this complicated economic environment? daniel: what we have seem to start has been positive. we've seen corporate performance holding up quite well, probably outside of even the base case expectations. he seen the consumer performing well, we've seen stress on part of the consumer. but everything we have seen to date has been quite strong. sonali: does that make you want to take on more risk than planned? daniel: it wants to be measured with risk. a lot of the data we are seeing is backwards looking, we talked about a stat yesterday of the portfolio companies we have learned to since 2018. 15% year on year, that sounds like a good number. but that is picking up the four quarters from 2021 to 2022, the

performance has been strong. i expected to be good in the near term. i think you will see volatility in 2023. kriti: as we see yields pickup, even in europe, arguably japan if you are watching, why not hop out of private credit? daniel: i look at it the other way. the regular way direct deal, 12 months ago, was made in a little more of a frothy market these days. with were base rates are, spreads have moved, they are at least 100 basis points wider. you are able to earn 12% on the regular direct lending deal frayed good company, i think that is attractive. i think you are getting paid for

the risk in the market. sonali: there are a lot of people that would say cash is giving almost 5%, why take on the risk and credit markets? daniel: i think you are balanced, the world is a different place with where it is that where you can get cash. looking at a total return investor, if you think about my example, a better loan document. probably good company. i think the up down is good in the corporate space. we have seen the same thing there, getting collateral and downside protection. getting paid in the mid-teams is quite attractive. kriti: what do you buy or sell from a sector perspective are we in an environment or volume is on your side? i think you're in an environment where you are a credit picker.

you are protecting against the downside, in some ways these are easier environments to underwrite deals. the risks are there in front of your face. i think that is positive. we tried to stay away for a long time from the highly cyclical industry, we try to lend to larger companies. the average is north of $100 million, five years ago it would be 60. it has gone up. he would get the asset-backed side, we tried to stay away so generally we are seeing stress. try to remove the tail risk from where you're deploying money and where you are investing capital and picking the sectors you think are defensive and -- sonali: there is a lot of concerns about auto, around credit cards. where are the areas that are still frothy? daniel: unfortunately, what has

happened in terms of inflation, in terms of rent -- it was gas prices, groceries. it impacts everybody, the consumer sort of directly. i think it has been across the asset classes you mentioned. i do not think this is a 2008 type scenario in any way, it is under a lot of stress in those sectors. you need to be cautious. sonali: there is a lot of conversation about how strapped they've been since last year, how much has the overhang held up? are they still looking strapped through the middle of the year? daniel: we are referring to is probably some activity in the market. i think this indicated market was not open, not available for them to clear that risk. you are probably back to the volatility now with the rate that you talk about.

i think the appetite for a new risk will be driven by can they clear the loan in the syndicated market? that would be better for the first half of the year. sonali: is there anything that would clear up the market? daniel: i think the market is waiting to understand when do we get to a point where we feel like we are caps on inflation? i think -- in my view, you are likely to see five .5% from a short-term perspective, may be higher than four or 4.5. the market wants to know that, the market wants to see the economic data continue to flow through on corporate's in the consumer. it has a benign default environment, i think that will take time. kriti: always a pleasure to have you both onset, a lot of people talking about were to put your money. still ahead, which were

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kriti: this is bloomberg markets. just five months after bridgewater founder turned over control of the firm to management team, the world's largest hedge fund stopped -- started a new ambitious strategy. your to august 3 is erik schatzker with the story from this morning. -- here to walk us through it is erik schatzker. the highlights. erik: let us start with what people will find most surprising. bridgewater, this legendary firm

, a long track record, been around 47 years, is cutting jobs. you do not hear that often about hedge funds especially of this size cutting jobs, cutting about 100. they want to redeploy the resources into other initiatives. the other thing people in the hedge fund community are going to find a super interesting is bridgewater is capping the so-called capacity of one of its strategies, pure alpha flagship strategy. what that means is the pure alpha strategy will no longer manage as much money as it once did. at one point, pure alpha peaked around one hundred billion dollars. that is a lot, for any single strategy in any asset class. it is an unconstrained strategy that runs across asset classes, it is a lot. for many years, it ran counter to the conventional wisdom that

there are capacity limits. if you want to achieve a certain level of performance, there is a capacity limit and we have to put one in place. kriti: what does that mean for fund managers trying to access the fund or strategy, how do you get into it? erik: bridgewater clients are mostly institutional. if it is a pension fund or endowment that does not have an allocation to pure alpha right now, it is going to be difficult to get an allocation to pure alpha. they are using the term restricting access. but to those who already have an allocation to pure alpha in do not want more and do not want to give anything up, they are probably fine. kriti: they are deploying a lot of them, but this one caught my eye. they are adding products that use individual stocks to express their view on macro trends, like interest rates and commodities. is that a simple as buying

shares of caterpillar or is there more to it? erik: in its simplest form, that is the way to think about it. macro is a part of the way that many equity investors think, but most discretionary equity investors are really bottoms up. bridgewater is combining some bottoms up fundamental analysis with this top down macro driven approach, some more macro than anything else. when it comes to choosing which stock to use to express the view , that is when the fundamental analysis will creep in and they will make a value decision on which one gives the most exposure -- factor, if you will that they are trying to isolate -- or which is the better company. kriti: sounds like a fun job to me. ai in asia seems to be the new trend across a lot of companies, talk about the ai piece. when they say they are delving into ai machine learning, what does that mean? erik: therefore areas in which

they are expanding, we talked about equities. sustainability is another, technology. bridgewater has been investing aggressively and artificial intelligence and machine learning for years, but no one has captured lightning and a bottle yet. we have all awakened the potential of artificial intelligence by messing around with chat gpt, generated ai. this is what firms like bridgewater are increasingly trying to harness. what is going to happen is they are setting aside a dedicated team with senior people that will be overseen by one of the firm's three chief investment officer's to engineer tools that utilize ai and machine learning to help make investment decisions. human beings are not getting written out of the equation, but they -- let us not forget,

machine learning, pattern recognition comes up with ideas. kriti: a lot to digest, erik schatzker has all of it. this is bloomberg. ♪

>> welcome to bloomberg markets. kriti: let us dive into the price action, read on the screen when you look at the equity market. s&p 500 down on the day by 4/10 of 1%, you're getting closer and closer to 4% on the 10 year yield, higher by seven basis waits. a lot of that changed when data came out, we will have sarah watt house of wells fargo to walk us through. as yields go higher, the dollar does not follow. we go by 4/10 of 1%, but some

green on the screen when you look at trading on the 77 handbook amber: amber: -- handle. let us look at movers in detail, continues to point a disappointing story with respect to kohl's and its outlook, but abercrombie posted solid results. the margin outlook is a bit of a concern. first solar, business is going gangbusters. the stock is at a 15 year high, first horizon is lower on the possibility its acquisition by td might not happen at all. certainly, not by the deadline. first horizon is under pressure. another canadian bank we are watching that has u.s. exposure is rbc, the shares are down in today's trading despite the fact the canadian bank beat earnings expectations by a wide margin. let us dive into the results. you should see the stock moving

higher, that is not the case. where are the wrinkles? paul: it's been a big quarter for the banks, that is well and good. but it tends to be viewed by investors as a soft source of earnings growth, that is the issue the market has with these numbers. it was getting driven by strong performance in capital markets, trading weak spots including an unexpected run-up in expenses and soft net interest income numbers, as well. as well as provisions for credit loss numbers. amber: they bought city national. paul: it serves high net worth individuals, we saw a solid profit performance. we saw a solid performance in canada as well, but not to the degree the market was looking for. kriti: paul bagnell walking us through the numbers of one of the biggest banks and not just the world -- not just in canada,

in the world. you heard him talking about the loss provisions, that is where there was surprise. not as bad as 2021, but a lot of the banks are making bets on the economy. we bring in wells fargo senior economist sarah house to walk us through the call that a lot of banks are making. there is no real clarity on whether it is something that should be factor in. sarah: when we look at the overall potential for a recession, it is still very much fair. we've seen the economy be more resilient, but also seen inflation be stickier, which suggests the fed has more work to do. it is perhaps taking more time for the effective higher interest rates to be felt, where we think it is more likely than not that the u.s. enters a recession later this year. what we have seen is perhaps there is a lot more questions around the timing of that. amber: the word that i see

traders throwing around his stagflation. we have the recession era type of performance at the same time, we look at things like prices paid today going higher. are we in for a prolonged period of stagflation? can you see it play out like that with jobs so high? sarah: so i think it could be a stagflation like environment, we are dealing with comfortably high inflation at the same time growth is slowing toward something below trend or even contracting. we are not seeing the degree of inflation like we are seeing in early 2022 and the 1970's, but i think directionally it does point to a comfortably high price growth as the fed tries to wrangle inflation under control. kriti: let's follow up on exactly what is being priced in the markets, 5.5% policy rate.

in september, just 24 hours, everything changed in the bond market with the data that we got. what happened to the conversation of some sort of manufacturing slow down? how do you factor that in? sarah: i think we still are seeing the manufacturing sectors drop in terms of what sectors are in a recession. even though the prices paid component was a touch above 50 today, we saw new orders declined for six straight months. the overall index was below 50 for four consecutive months. we saw industrial production for manufacturing down about 2% since october, so i think we are seeing some giveback. in terms of what that means for the broader economy, manufacturing is still only about 11% of the overall economy, only about 8% unemployment. you have one spot that is still generally weaker, but you are

seeing pretty strong spending elsewhere. part of the weakness in manufacturing reflects the normalization of activity we are seeing as we get further passed the pandemic and to see the shift away from goods and back toward services. amber: i think about milton friedman and the log lags -- maung that lags as the market is pricing and more rate increases. this comes at a time we have not seen the full effect of the rate increases so far. where are you looking for some of the cracks to show up first? would it be commercial real estate, leverage loans? are we starting to see signs already bubbling through? sarah: in terms of the economy, we are seeing it in most interest-rate rate sectors like housing. we are seeing it in cyclically sensitive sectors like manufacturing. autos is in a pretty unique position, they are the higher financing costs. that will be weakening some of the demand we are seeing, there

are still pent up sales to be had. it is going to be tougher for manufacturers and retailers to see those higher prices. i think when we look at where ultimately the next area of the economy is looking at, i think so much of it boils at, i think so much of it boils down to the labor market. can we continue to see strong demand for workers, continued hiring? it allows them -- kriti: what about the housing market? what is the bigger bubble that needs to be popped? sarah: i think we are seeing softness in housing. existing home sales are down more than 30% over the past year, that is finally starting to transition into weakness and

prices. for a lot of homeowners, they've locked in low rates. they are in very good positions in terms of equity. for a lot of the population, what is happening in the housing market does not affect their finances, the labor market still the most important driver of what happens with income going forward and what that means for spending. yes, housing matters. in terms of the broader ebbs and flows of the spending picture, it comes down to what is happening with the jobs market. kriti: sarah house, thanks for walking us through the story. coming up, we switch to the stock market, kohl's, dollar tree and lowe's reporting. the numbers tell us about the health of the consumer and outlook for the retail industry. this is bloomberg. ♪

kriti: this is bloomberg markets. there is an array of retail earnings out today, kohl's is one of the retailers releasing a downgrade forecast, the ceo saying the results reflect sales pressure driven by the ongoing persistent inflationary environment, something we hear from a lot of retailers and companies. let's bring in brandon case for more information. it was so staggering to see kohl's and lowe's say the same thing, vocals is punished more. walk us through it. brendan: that is right. goals -- kohl's is a bit of a turnaround story. you have a broad-based effort to get things back on track after a year in which they lost half of their value from a stock market perspective, they had a lot of

trouble keeping up with inflation as consumers shift spending tomorrow the basic goods. if the old story about discretionary demand, which is hitting target and a lot of other retailers. that is what kohl's is dealing with, that helps explains the supporting -- disappointing earnings forecast. amber: they are not the only ones that issued a down forecast, they are trading lower end compared to dollar tree, which had an outlook that was weaker but is trading higher. there is forgiveness in the market, why is dollar tree getting the pass? brendan: definitely a lot of forgiveness. kohl's is only down a few percentage points, i believe, while the dollar tree which was initially down is actually rising. we are seeing is dollar tree, light kohl's -- like kohl's is a turnaround story. you have a new ceo coming in, part of an activist back effort

to improve operations. a lot of what you are going to see in terms of earning headwinds has to do with investments they are making for the long-term. it seems like investors are willing to give them a pass and say people are going more and more to the dollar store, even from higher income levels. we are willing to wait to see if your turnaround plan is going to get traction. kriti: i will let you take it. amber: no no, you go. kriti: quickly, 30 seconds. we have to compare the kohl's case and the activist investment stake you are starting to see. what could they possibly change when they are navigating macro environments? brendan: they have a lot to deal with. there is a lot of analysis out there that suggests store operations are not up to stuff -- up to snuff.

the new ceo has a great turnaround background, he will make sure you can get the stores whipped into shape. amber: thanks for joining us with that perspective, let us figure out how to put all of this into practice in your portfolio. we have joe feldman joining us. in this environment, even the names you like, is it hard to have high conviction on any of them? joe: i think that is a fair assessment, it's been a challenging year. the past six months and heading into this year, where's the consumer? the top economists are having a difficult time figuring that out. we continue to hear from dollar tree, target yesterday, walmart last week, the consumer has been treating down, seeking value. the consumer is focused on household essentials and consumables, basic things. the family fed, getting through the week.

it has put a lot of pressure on discretionary sales and creates a lot of confusion for the retail industry. where do? -- where do you go next? they want to be focused around that from an investment perspective. kriti: bring us back to the idea of discount retailers in general. i want to use kohl's as a poster child, the idea that is more and more people whether the idea of inflation do not factor a recession as the base case, no landing scenario. does that mean consumers in the near future are not going to be going to discount retailers? they will turn to the may be more expensive items they perhaps put off the past year? joe: it is possible. we are hopeful discretionary picks up as the year progresses, right now we are not seeing that. i think you have a different situation with kohl's that needs to be worked on, kohl's is

squarely discretionary. it has value in the family oriented discretionary goods, which is exactly the part of the market that is not spending on that product right now. if you look at target, family-friendly company, sells a lot of that type of apparel as well. they also have a lot of food and consumables and household essentials that get people into the stores. kohl's does not have that. they got caught in the middle. we are thinking you are going to see some discretionary sales toward the end of the year as it progresses, we are hoping the consumer will be able to spend. so far it has been ok. again, they are spending on consumables and household goods, you are seeing dining out and trips happening. it is the middle income consumer

that is getting squeezed in that is where there is a lot of pressure. amber: do you think we will see more activist interest in the sector? kohl's, also nordstrom getting activist, made with the caveat the track record of activist saving retailers is checkered at best? joe: i do think you will see more activist interest in retail, there is a lot of opportunity, high-quality brand names. we sort of have some issues as people get interested and think they can turn things around. a dollar tree situation is a little unique in the sense i think the activist approach is the right way. they brought in high-quality management, turned over some of the management team. they have guys with a proven track record. it was pretty formulaic, so to speak. i think that is why people like it. they heard today that with the

company is going to do has been replicated before at dollar general, by the same ceo that is currently at dollar tree. so you can look to them and point to there is an activist ceo with a good track record and knows how to turn things around. that does not happen with other brands. we saw with bed, bath & beyond, the activist came in, brought a new management and they did not do anything to fix the company in the right way and things got worse for them. that is where we get concerned where we get concerned were you see certain activists that want to come in, do quick things to make money for themselves. spin off real estate, buyback a lot of stock. that does not help the long-term -- the longevity of the company. kriti: we got target earnings earlier this week, it brings back the question of inventories. is the inventory problem mostly over for the sector? joe: it seems to be in a much better position.

down 3% target, 13% discretionary side. we saw it in good shape last week with walmart, those were the big guys that were pressuring all of retail. right now, we are starting 2023 on a much cleaner spot and i think that is fair to say across retail. amber: thanks for that perspective, that is joe feldman , telsey senior managing director. salesforce reports after the bell, it has got activist sniffing at its heels. a preview of what to expect when we return. ♪

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yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. ♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family or passing down the family business or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? kriti: this is bloomberg markets. salesforce reporting its latest results after the bell, the company has been under activist pressure to boost profits and we are expecting to hear a lot

about the discussion of cost-saving initiatives after the bell. this is a massive deal, because even though we do not think of it as a traditional tech company, it is a major dow component. i wanted to what extent the earnings after the bell will move the market tomorrow. walk us through the big takeaway, what is the game changer for what some people are calling the biggest earnings report and the 24 year history? >> the big deal for salesforce's they are going to get a picture of the macro, but they have a lot of issues with a lot of executives leaving. i think that will dominate some of the discussion. from our side, the focused is mostly on margins and how they can improve margins the next three years. i think growth will come back, but it will take time for it to recover. amber: there are five activist investors, is that too many for

them to have a cohesive plan for management to put in place? activist situations are messy enough when there is only one. anurag: i can assure you the bulk of them are focused more on profit than anything else. it is a bit of low hanging fruit for salesforce. if you are a cloud-based software company and just starting, you can spend 50%, 60% of revenue in sales and marketing. salesforce is been around for many years, 24 years. logically, they should not be spending 40% of revenue in sales and marketing, they should be somewhere between microsoft would spend only 10%, 11%, somewhere in that range. i think almost everybody thinks they can do more. they already are one of the

biggest cloud platforms we know. that is low hanging fruit for any activist at this point. kriti: i'm glad you mentioned the budget, 10 million dollars just on matthew mcconaughey to be the spokesperson for salesforce. but i think the real highlight is what we are seeing on the bloomberg terminal. 42 buys, 11 holds, one cell with a street high-priced target of $310. shares are nowhere near that, they are trading at 106 $25. why is the competition in the cloud space with alphabet and microsoft, oracle, not a bigger overhang for this company? anurag: that is because salesforce in the areas where it operates, it dominates. sales automation, it is four times bigger than the nearest competitor. almost each of their cloud assets are pretty much so unique by themselves, i do not think

that is a problem. i think this is an area where product is not the issue. one of the things you have to remember, it is one of the largest applications. if you are doing microsoft office, it gets hit by macro anyway. you cannot avoid that. kriti: anurag rana walking us through the nitty-gritty of salesforce reporting after the bell, we thank you as always. i am fascinated by the story. the salesforce one is going to move the markets, we are getting ahead of it. amber: and they have survived not only is the founder of the company, but the ceo for more than two decades. it is rare to see that as he becomes the personality behind this. will he ultimately survive this round of activist pressure? it will be fascinating to watch. kriti: emily chang has an exclusive interview with him tonight, tune in tonight.

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romaine: the second day of selling for stocks and bonds. this is the kickoff to the close. scarlet: your mic is not working, we are looking at a second day of losses as of the dow transports do five weekends we the equities. the 10 year yield going up to 3.99%. of course we are keeping an eye on chinese equities after the latest data coming out of china showed that manufacturing and services