pmi data the one more looked at?> 51.8 is a good number. the last time we were this high , higher than 51 point eight, so a near five-year high for the manufacturing index. it points to the moderate increase in manufacturing sentiment. in february, 51.8 now in march, 51.3 in january. it backs up the early indicators , satellite manufacturing index, 51.8. rishaad: it is strange how this non--official data tracks. it is actually backing up the state numbers. >> yes, they may be accurate. it is from the national bureau of statistics. in march, the numbers in the pmi upwards because of the distortions from the lunar new year holiday. aberration, but a positive sign for authorities trying to put some stability into this economy. were speaking to some clever people at the credit suisse conference. what is the general consensus of where the chinese economy goes from here? is it all being managed? >> again, it's not the most exciting word, but the one word i kept hearing was stability, and that is what the authorities have d

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the official manufacturing pmi is a positive ahead of the national congress kicking off. of next week. as you say, you come down on the ground, places like this. it is a diverse and divergent picture. this company makes glass products for the likes of home depot and they are really struggling for a number of reasons. .rices have picked up wages have increased about three times in the last 10 years. demand has remained flat. they are really struggling. really, the future of this business is in doubt. we were in a plastics factory yesterday. around 800mbers from 10 years ago, to about 50 now. those upstream and producing raw materials are getting a boost. in consumer prices is a concern with these wage hikes. say, there is a broader picture for china. it is more positive. haidi: pretty far from reality. we follow it very closely. chineseely are these companies on the ground following events in washington? within about five minutes of .eeting, trump came up they are watching what he says. they want more clarity of his china policy, and they are trying to factored into their

the services and composite pmis. the services pmi for february, 55.5, lower than the flash estimate of 55.6, but an improvement coming from the january final number of 53.7. this is the highest number since may of 2011. the composite pmi number for february is 56, in line with the flash. the highest since april 2011. how are markets doing? >> mostly red at the moment. trading lower, down by a half percent for most of the european equity indexes. the ftse, just bucking the trend a tad along with some of the smaller markets. seems like it's been a volatile week after we saw mr. trump's address, right? the address to congress. and that we're maybe just leveling off heading into the weekend. >> pausing for breath, but janet yellen speaks later today. >> and fisherer. >> one of the reasons the ftse 100 is trading down is wpp. the stock is trading near the bottom of the stoxx 600 after the company says it has seen a slow start to 2017 after reporting like for like revenue up 1.5% for january. the world's largest advertisin

data coming out across the globe is indicating --ther very good pmi's.indicating inflationary pressures are going to keep coming up, so it is time for the market to respond to that by saying it is time for the u.s. to begin to think of raising the interest rates and of course, the move we saw overnight is of thise massive, and i think , when digested, it is partly good because in a way, what will happen is the dollar has been calming down. it should recover. that is another form of tightening. up,er the dollar goes or it is a much more delayed and you have much more rises to come. hok, we are showing a one-year dollar chart. i have one year of the dollar, a more dramatic picture because you may not expect the dollar to be this low relative to moves over the last year. can we expect investors to really continue to pile into the dollar now if they see the fed moving forward with possibly three rate hikes this year? ashok: i think we should expect the dollar to retest its own high that we had a little while ago and maybe even begin to pull further up. i don

index climbing 51.8 from with the official pmi index climbing 51.8from 51.6 with the official pmi index a number of bad 50 is an indicator of expansion and it is an indicator of expansion and it is the strongest level since april 2012 with a report revealing production orders expanded in the key manufacturing industry. as for the official nonmanufacturing purchasing managers' index, aaron, it rebounded as well, indicating strength in the services sector. growth in the services industry is accelerating at the fastest pace in nearly three years and the services sector accounts for over half of the mainland economy and for the majority of its 6—.7% growth in 2016. so, things are looking positive for the chinese economy, hopefully. indeed, a healthy chinese economy is a healthy global economy. 0k, rico, love you, in the nonbiblical sense, of course. we will see you soon, have a great weekend. also on today's business dairy. stay with me, i didn't make a mistake. we are in the us where there's a new meaning to the phrase ‘cash cows‘. the price of butter is at an all time high — butter future

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flash pmi at 56.7.nding the week on a soft note, down for the week as a whole but less so than the u.s. markets. the ftse off a percent. the french market is flat. >> the broader markets now and a look at oil. continuing its slide. wti down more than 2% on the week. popping back up a bit. up 0.4%. brent is up as well, a quarter percentage point. looking at the dollar, the dollar is on pace for its third negative week there a row, down against the euro this morning. slightly up against the yen and up against the pound. looking at gold. gold breaking the five-day win streak. this morning it stands at 1,242.5. there has been some speculation that -- i saw it from one of the banks this morning about whether investors will be rushing towards gold with volatility in other areas, especially given the uncertainty about what's happening on capitol hill. >> they have been doing that. gold is one of the beneficiaries of this pullback from the trump reflation trade. it's up 1.4% for the week as a whole. second posi

some of the data in terms of pmi if there and looks as is strengthening and the underlying drivers foronomy. , i'm going to bring out this chart i put together to showcase what has been happening with the pmi figures and our viewers can pull it up on the bloomberg as well. this change is fascinating in terms of sentiment. this is another milestone in a remarkable turnaround story. >> that's right. we are still looking at a contraction in activity or an indication in terms of pmi showing that activity is still below 50, but a pronounced bounce from january when it was just above 43 to february, where it is now sitting at 46.7, the headline index. the end of last year really characterized by pessimism and uncertainty vis-À-vis the exchange rate, that situation being resolved with a significant devaluation, and the initial impact was one of concern, and uncertainty, but coming out of that, you are starting to see the benefits of such a bold step by way of renewed confidence and inflows into the country, and export orders looking firm as well. yousef: where does that leave us? the egyptian

pmi came in at 51.6, ahead of estimates.

chinese pmi came in ahead of expectations, 51.6. january was 51.3. that's manufacturing pmi.apan is higher in the market. 1.5% because of the dollar strength and yen weakness. european trade, which was positive for february, 2% of gains, positive for again today. germany an france up 1.4%ment we did see european pmis coming in in line with expectation. they weren't ahead of expectations, but a nice reading around the 54 or 55 level. >> oil starts the month in the green. coming off a month where it gained about 2.3% for february. wti, 54.19. we get over that 54 level. brent, 56.78. higher by a half percent. nat gas continues to fall, down nearly 1%. ten-year treasury note yield, a lot to of action in fx and fixed income. that probability of a march interest rate hike has gone up dramatically in the last 24 hours thanks to a number of fed speakers on cnbc and elsewhere hinting that march is firmly on the table for a rate hike. treasury yields higher, let's see if they spike more. they've been on the back burner. as for the u.s. dollar, seeing a rise. up a half percent this morn

pmi's. pmi. manufacturing pmi coming in at 59.8. an improvement from february.onmanufacturing pmi rose to a two-year high. came in higher than expected. 55.1. china has confirmed that the president will meet with president trump next week saying it will be a new starting point. the talks will be at the mar-a-lago resort. china has announced it is ready to advance talks. it wants washington to ease restrictions. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. a quick check right now of the markets. hang seng just entering the lunch break. 0.5% under weather. ♪ yousef: welcome to the best of bloomberg market: middle east. deriving stories headlines this week. oil producers gathered in kuwait to ss the effect of their production herbs. bring the markets back into balance. saudi aramco enjoyed a boost of their fortunes ahead of next year's much anticipated ipo. it change in the tax bill has investors valuing aramco at more than $1 trillion. the south african president and the finance minister. th

i will have a chart to showcase what is going on with of the pmi.nating, this change in terms of sentiment, isn't it? another milestone, a remarkable turnaround story in a very short time. >> that is right. we are looking at a contraction in activity or an indication iso the emi showing activity still in contraction territory, below 50. [no audio] the last two or three months characterized by pessimism and insecurity, about the exchange rate. resolved with a significant evaluation. in the initial impact was one of concern. and uncertainty. coming out of that you are starting to see the benefits of such a bold step, by way of renewed confluent -- influence. yousef: where does that leave us? one of the best currencies has been the pound. analysts say this is going way too far and needs to scale back. where do you see a relatively realistic level of a foreign exchange rate? >> i think it consolidates over the course of the year. in the first few weeks and months of such a dramatic change, flows will come back, interest rates will be higher. the downsid

in china, official manufacturing pmi 51.8. services pmi stronger than expected, 55.1.ooking at asian equities this morning. a soft end to the week, month and quarter. japan and hong kong down about 0.8%. in terms of sarah's comments of a strong quarter for global stocks, hong kong up about 10% for the quarter. up nicely for the month as well. nikkei less impressive, down slightly for the quarter. >> one of the few major markets down. >> so much of the softness in the dollar against the yen playing into that. looking at europe. german retail sales rose more than expected for february, but dropped for the year. and for the uk, q4 gdp grew at 1.9% year on year. european trade for you this morning. a little bit soft, but comes off the back of decent returns. europe is up week to date, month to date, and quarter to date. the outlyer compared to the u.s. is the month to date performance. that's because they needed to play catch up. in terms of the overall quarter to date performance for europe, similar to the picture of the u.s. looking at about 5% of gains for the quarter,

pmi's. pmi. manufacturing pmi coming in at 59.8. an improvement from february.pmi rose to a two-year high.

the nonmanufacturing pmi great

services pmi, 58 point five, ahead of the expectation of 56.1. the manufacturing pmi of 53.4 also better than the estimate of 52.4. point six.te, 57 the market was looking for 55.8. while he got some softer gdp data, we get some stronger pmi data. we were talking about the ecb watching all of that together. producers,a, those manufacturing index rising. guy: in asian trading, the euro went down. it is now beginning to spike back up. not a huge move, but we are seeing the return as we get more liquidity into the london time zone. let's figure out what else is going on. there's plenty to talk about, nejra cehic. there is indeed. i'm starting with the gilt market open. we've seen the 10-year treasury yield up one basis point. we've seen a little bit of sterling weakness. some are attributing it to those comments. as we look at the guild yield, 1.24%. we are higher by some two basis points. 1.25%.dging towards in terms of the equity market open, we're not seeing a huge move in terms of the benchmark. but it is not following the optimism that we have

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the pmi figures help that story for sure. we move through france elections without any hiccups, the euro will trend higher. alix: the story of the last year was about fed chair janet yellen. now it is about president trump. will the story for 2017 be about -- willaghi was to mark be about mario draghi? >> yes. it will be more about that. they still have a lot of issues on the domestic side. -- thereng pressures is a lot going on in the eurozone still. there is a lot of skepticism if things will end well there. but with the data doing what it is doing, a lot will depend on inflation and ultimately that is where they are looking. wage growth is the key component that is missing right now. commodities have helped the headline numbers. bank ofhi in the england are willing to look through that until they see the real inflation come through. thank you. coming up on this program, it is the story in the wilderness of the hong kong equity market. dropping 91% out of nowhere. short-sellers. later on, a new program, bloomberg real yield

these are the private gauges of pmi out of china. put them together with an official gauge to show our viewers where we are as far as votes are concerned. this chart is the single most important determinants of where we go. why? >> that's right, david. the most important thing is china, if we think of it as the world's factory, and chinese manufacturing not just as a proxy for growth and china but as a proxy for global growth, the privately compiled data out of china for manufacturing is indicatore a leading and a better proxy of chinese growth than gdp. i know you had folks talking gdp numbers. those numbers are often a bit , this manufacturing pmi which is a break even of 50, 18 of 19 months below that level. 18 of 19 months in a manufacturing session between december of 2014 and june of 2016. that is part of the reason why you have seen industrial metals like aluminum or copper, and why you have seen oil prices to a certain degree and why you see things like rubber prices catapult up great i think you will see these continue to tr

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if you're just tuning in, let's get to some uk data in the form of uk construction pmi. that picked up pace in the month of january. a print of 52.5 versus -- for february, versus a january print of 52.2. and that is slightly higher than the reuters poll of 52.2. obviously a very small component of the uk economy. only 6% or 8%. yesterday the manufacturing pmi was slightly disappointing. the big one is the services one. that's set to come in the next few days. >> there is a slowdown in new orders, which is a mixed signal. that's what to come in the future. given we have all this brexit uncertainty, new orders increasing at the slowest pace since october. yeah. we'll have to see. see what happens in the uk. >> sterling/dollar 1.2276. at a six-week low yesterday on the back of weaker than expected pmi on the manufacturing side but also the strong dollar on the back of the fed speak. that was the more important side of the equation. let's come back to u.s. futures. let's peek at how they're looking this morning. the s&p 500 off by 3 appointments. the dow jones off by 7, the

eurozone final services pmi, 55.5. basically in line with expectation.urope european sales dropping for the third consecutive month, down 0.1%. what does this mean for markets? they are in the red slightly. this comes off the back of a desent week for european trade. markets up over 2% in and around 2% with these declines for the week as a whole. >> they've been outperforming u.s. equities for the week as a whole. turning to the broader markets, let's look at the energy complex right now. we've got oil up a bit this morning. wti crude trading about 52.67. ice prebrent, 55.18 after lossen both of those yesterday. keep in mind u.s. inventories at a record level. that's according to the government data we got this week. nat gas about flat. turning now to currencies, looking at what has happened with the dollar this week. we've seen strengthening in the dollar this week. this morning we've got it weaker against the euro. however weaker against the yen an stronger against the pound. again, this is all that hawkish fed talk that we've seen playing out in curre

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it is showing up in the pmi's.it can translate into her data there will be a problem for the ecb in terms of communication. we have brexit coming up, that is the biggest risk. more than anything in america with the health care risk. the french election has a risk to upset markets. until we get through that, i think we will see a fair amount of caution and a sensitive approach from the ecb policymakers. julie: yet, whether it is the french election, policy in the , markets do not seem to care. we are not -- we have not seen much risk aversion at all. whether you're talking about europe or the united states. when you are hearing from investors, are they feeling optimistic, apathetic, what is the sentiment? paul: apathetic is probably stronger -- we have very suppressed volatility gauges. we got excited a little more than 1% in the s&p this week. just because it was the biggest move in a long time. this is not a market in a massive tailspin. event.ot a huge risk off it is delay. it is caution. like you are saying, the

pmi was worse than expected.k the first angle we are aware of the view that it's going to be hard for them to do any kind of deal which involves staying in parts of the union. the single market, you have tradeand you have negotiations with the eu. in best cases we leave both. people would call that a hard brexit. the economy has done better than expected. some would agree with that. we don't think we're going to get a recession. i think that will be interesting next week going forward is the use of fiscal policy. i think we are getting to the stage now where the deficit is at a point were you can use that if you need to. tom: what are the ramifications if we get sterling to break down where it was. bring the chart up right now. he looks at this chart all week and sings come by. we are here in january. we just rolled over. this is brexit over here. we come out of this tight little trading range right here. if i come over here and i use function, youoom can see it plunged out this week. what are the ramifications t

manufacturing pmi increased to 51 .8 in march, beating estimates. as -- evidence of momentum in the world's second-largest economy. japan has registered its first back-to-back inflation rise since 2015. pdi excluding fresh fruit rose 0.2% from a year earlier. the unemployment rate stood at 2.8 in february. toshiba shares have jumped in tokyo trading. that on expectations that the crisis hit companies 2016 loss that theand a report chip business may be sold for $17.8 billion. according to nikkei, about 10 bidders have come forward to make offers. the problem challenge. for china's biggest bank, which has worked over the first half of the decade may finally be easing. earning reports this week from china construction bank shows that provisions for losses on bad loans stabilized last year, helping them to post higher than estimated profits. lenders have been contending with loans, narrowing margins and tighter regulations. china's top three airlines have reported their biggest combined profit in five years, despite taking currency loss from the weakeni

manufacturing pmi increased to 51.8 in march beating estimates. of increasing momentum in the world's second-largest economy. japan has registered its first back-to-back inflation rise since 2015. cpi rose 0.2% in february from a year earlier. at unemployment rate stood 2.8 percent in february, lower than the 3% forecast. have's top three airlines reported their biggest combined profit in five years despite taking currency losses from the weakening yuan. bloomberg spoke exclusively to air china's cfo about the carriers plan to hedge oil prices. a goodn't think now is time for oil hedging, given the uncertainty in the market at the moment. it remains unclear whether opec will extend their production cuts. secondly, the u.s. shale gas producers are very perp -- productive. thirdly, we have seen great uncertainty surrounding the new u.s. government. spacex has flown a reused rocket to space and back again for the first time, marking its attempts to reduce costs, allowing people to live on other planets one-day. placed a, a rocket satellite into orbit

pmi falling to 53.3 from 54.5 in january.igger than economists forecasted, showing the services sector, the main driver of the , the reason the economy has fared better than expected since the brexit vote, is it showing the services sector could be faltering? it combines services, manufacturing, pointing to economic growth of .4% this quarter, the weakest growth in a year. .ascinating piece of data consequently, sterling is down for the sixth day against the dollar, the worst stretch since december 2015, at the lowest level since january 16. the lowest level is 120.40 seven, that was the close january 16, the lowest since may of 1985. the median forecast is 122 but the next couple of quarters. bank is theers most bearish with a second quarter forecast of $1.30. one of the many things you can look up on the bloomberg. julie: breaking news from the trump administration. suspending and obama administration to have transparency in airline fares. the action has been stopped by the airlines and the washington trade group. they issu

ismid have the manufacturing index, a important pmi manufacturing index.is up to 57% in february. that is a strong reading. the key fed inflation gauge seems to be stalled. looking at #28 -- this in slater is the blue line. the core is the white line. 1.9 is a hair's breath away from the target. the court is at 1.7. this is from our bloomberg intelligence team. it bears consideration. they are talking about the consumer and spending report. it includes the inflation number i just showed you. spending was below forecast, up 0.2%. they say inflation is cutting into household income. that could curb first quarter gdp. they don't see an increase until the fed knows what is happening. they are sticking to a second quarter call. that would put us closer to june. host: it is interesting. we did not get the specifics we were expecting or hoping from president trump in his address to congress. those that had the element of certainty in terms of what the fed can do? >> there is uncertainty over fiscal policy. that is no surprise after the speech of donald trump to c

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busy day, pmi data out all over the place. manufacturing growth slowing for the second month in april. the pmi is falling to 54.6 from the rise 55.7. below economist expectations. sterling's fall since brexit making goods cheaper for overseas and boosting costs for producers, a gauge of input prices slipping from a record high last month. this is new-area manufacturing. the white line, france, the blue line, german manufacturing. the yellow line, euro-area manufacturing, accelerating for .he sixth month in february maybe starting to build as factors struggle to keep up to 90 minutes into the trading day, abigail. w 21,000. what more can you talk about? abigail: pretty amazing, mark. in this sort of still new year, dow 21,000, as you mentioned. first 1% move in 56 days. we will be interested to see if he can close at those levels. really a big risk-on day for stocks after president trump did address congress yesterday. that speech was once again light on details run potential policy .hanges you could say this is a continuation

pmi came in at 51.6, ahead of estimates. be talkingsaid to its memory chip business, valley that $13 billion. it would be willing to sell the entire unit. toshiba only wanted to sell a minority stake but has to give up control because of losses in the u.s. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you are watching bloomberg. trading just getting underway in hong kong and china. the want to watch as the japanese yen as it continues to lose ground. ♪ >> i'm selina wang. this is "bloomberg technology." coming up, amazon breaks the internet. how a problem in the crowd trigger the error message sweeping across the east coast. plus, the final countdown to the snap ipo with just 24 hours to share pricing. we highlight the biggest investor concerns. and, getting his close-up. it's not a good look. how the uber ceo was caught on tape in a video had in that handed over to bloomberg. first, a massive internet destruction hit the east coast of the u.s. with amazon web serv

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meantime, you have pmi, employment. this is a healthy area. have seen growth come into the area. it is being driven by employment. it is not leveraging up. it is not financial. i am optimistic it can last going into next year. francine: are there risks with rags it? on europehe impact would be limited unless it shows some countries they are better off outside the union. don't think we will have that answer for a wild. you have the negotiations starting. there is going to be a lot of posturing. europeans are going to adopt a tough stance. they will adopt a tough stance as a way to show countries that might have -- that might be willing to exit that it is not a good strategy. worried about what is going on the other side of atlantic. can he push forward his agenda? what kind of national policy is he going to exit cute -- execute? francine: thank you. we are getting breaking news out of the boe. today, we have the results of the biggest lenders being subjected to a stress test. we seem to have some criteria of what they have been subjected to. te

that is a good sign and we see pmi across europe with momentum.he recovery is on pace and i think the european central banks or ecb would like to see the curve steepen. it is very important for the financial industry, banks and insurance companies need to be made profitable. mark: let's talk about your general thesis that you say it will be behind volatility. let's look at some of your trades. s, one of your high conviction overweight. why is that? jon: it is one of the few sectors we can see technical valuations are attractive. what we are buying -- we are buying into this from 2005. we are buying the disconnect. people are getting jobs and better wages and the ability to pay him proves. on collateral, house prices are going up and it reduces losses. we are looking forward to 4% or 5% losses on the yield with a decent upside. i took most of my corporate credit risk off in the end of february. i took it off down 20%. i have come from having over 60% of my fund dedicated to corporate credit risk one year ago to having just about 10% now. that trade

. >> pmi -- they've been on fire. multiyear highs in terms of the industrial -- >> i'm saying -- >> the question you may be trying say are. we positioned right now for a, could it get any better? is there only disruption or down side risk in. >> that's my point. i don't know if it is 1.5 or 2%. he know people are talking 2% growth. so if you get any hint there is a problem with that, the way people are positioned, you get a market dislocation. >> for more on what could it mean for the markets, merrill lynch joins us on the fast line. >> to hear from you. >> could not current with this we saw a leg lower in hyg. >> there's a lot of factors to try to isolate the specific reasons for why the market, or why high yield is selling off. we've had lower oil prices, higher rates. i think a good point brought up. you have the great growth expectations. whether or not we'll be able to meet those in the face of a fed that has, just as they're going to height. what is the answer? the energy side of the story is not the answer. you

pmi outperforms estimates, the aussie could challenge that 77 level. kathleen, yvonne. >> thanks for connecting the dots. we saw the economy, the report, and the markets. as investors and voters countdown to president trump's speech to congress, hoping to learn how he proposes to deliver on his bullish campaign promises. our chief washington correspondent kevin cirilli joins us from capitol hill. a busy man today, this evening, and it is just getting started, kevin. some of the top of head of this speech is that -- talk ahead of trump,eech is that he, wants to step up and give an optimistic, unifying speech. is this his own players or does his team just say, president trump, you have got to move in this direction? kevin: first and foremost, sources i see are hoping he will provide more detail into his policy initiatives that he would like this republican-controlled congress to execute in terms of issuesy on a host of whether it is cap form, repealing parts of the affordable care act, obamacare, health care, or defense plan, immigration plan, he has not

if you look at the flows into european equity funds, what you're seeing at the moment is pmi well above 50 signaling prolonged expansion. yet flows into equities have failed to match the pmis, and the obvious catalyst is people are concerned about the elections taking place, which they find difficult to call. we take some comfort, i think, from the fact that opinion polls last year which people felt were wrong, are more right than they were given credit for. in the case of the uk referendum, the final polls before the referendum were for a narrow lead win, that's what we got. in the u.s. election, the final polls were for trump to lose the popular vote narrowly. that's what happened. if we roll that forward and look at the dutch election, people were afraid there would be a hidden constituency, that didn't materialize. now we have the french election. people are afraid of hidden national front voters who come to the forein t in the second r, opinion polls don't suggest that at the moment. >>> what is the playbook? do you stay with cyclicaling? cyclicals? >> there's every vine that infla

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by the way pmi in europe i continue near six-year high.just say too high versus the euro. the euro is about to have a major ramp here. watch the euro. by the way, go to europe. you know, go to europe right now. maybe this weekend. >> yeah. some of these pmis 56.7 was the eurozone number. germany's number was red hot. france. >> they've got to taper, they've got to stop quantitative easing. they've got to grow up. remember, i tell you they are the ones the trade people -- they are the unfair traders right now. we're surrounded by people who we have to protect ourselves from. i shouldn't say protect, i'm saying don't take our markets. >> as we get ready for the opening bell, dow, s&p, nasdaq on pace for the worst point drop for a week of the year. dow riding a six-day loss, that's the longest since november, but we might recover some of it mere. >> micron, there can be a readthrough nvidia. remember all the companies doing semiconductor -- [ bell ringing ] >> there's the opening bell and s&p at the big board here celebrating its ipo, enterpr

you said the pmi -- >> the pmi, isms, not just in the u.s. >> we had 1.9% gdp for eight years.hy all of a sudden is this a great economy in your view? enough to spur a 15 mr% move ine stock market. >> i will give trump 5% of the 10%. >> you think 2017 the gdp will be what? >> 2.5. 2018, assuming we get legislation, we have a shot at 3. we have not been at 3% gdp for umpteen years. give the market a half point for smart reform, we go 3 instead of 2. that's a big change. >> but not from an economy that was going to do that either way. >> i totally agree. had we continued where we were, we would be stuck at two. >> the biggest question in my mind can trump and mulvaney -- mult vein mulvaney was a freedom guy. one of the founders of the freedom caucus. could those two guys whip the freedom caucus into supporting this? or will 20 guys say no? >> the problem you have is up or down vote. you will vote no? >> will the 20 guys -- you can only lose 20. how many can you lose in the senate? >> two. that's all. >> they have to come together. >> if this doesn't happen, it's a huge defeat and

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pmi's: if you look at the from leslie, we know the europe numbers are good.are the numbers, europe accelerated in terms of the pmi's. previously, the u.s. and japan went down. still growth but decelerating r ate. europe is not us for a long in a cyclical recovery as the u.s. is. the u.s. has been going now since 2009, so we are expected to be much more tepid at this point. data. pmi's are soft willu expect the hard data catch up with the soft data in europe? daniel: there is this divergence that has to converge. it is not just the pmi's pointing to better growth in the u.s., but we also have sentiment data. but without the hard data that has come through. it is a question around the u.s., whether or not you will see an increase in business investment, in terms of the hard data. in europe, we think it is more likely that the data will come through. there is still a lot of pent-up demand among consumers, so that should drive some growth. the risk is if the euro strengthens because the fed needs to be more hawkish, and there is still a lack of animal --rits in e

they beat analyst predictions and split from february's pmi. responding said it is their best employment growth in nearly a decade. more bad news for youtube. johnson & johnson and j.p. morgan chase are just the latest to pull their ads from the site of her concerns their material may be running alongside offensive or extremist videos. it comes at an awkward moment for youtube and google as they have been on a push to move advertisers from tv to online. >> the bad news keeps piling up for google. the number of companies who called out from youtube which it owns is now over 250. brands are concerned their adverts could be shown alongside extremist content. it won't help youtube's long-term strategy of trying to steal at revenue from television with the boy cut coming a month ahead of when tv networks will try to woo major advertisers with her fall lineups. online hate speech is an increasingly potent issue and big companies will be unlikely to shift their budget from television to online unless their branded safety can be guaranteed. google has

--vices and composited composite pmi, service pmi that at 56.4 andweaker the composite slightly weakerata there. onnext, snap shares soared the first day of public trading, but will those gains disappear, just like its photos? details next. this is bloomberg. ♪ ♪ guy: welcome. pops, a 40% -- 44%, gives market valuation over $28 billion. that is bigger than deutsche bank. adam joins us now. we are done with the ipo, we go from here. where does the company go from here? to prove it deserves the valuation that puts it above one of the biggest banks in the world. essentially, needs to prove this business model. people are betting on an advertising business that will grow and grow along the lines of some of the big other internet social networking companies. thus far, it is unproven. company loses lots of money and every dollar it makes in revenue, it loses about $1.20. getting more media companies to come onto the platform and bring down some of the costs it takes to generate that revenue is going to be key. otheri am looking at some -- we talk about facebook all the time being valued 10 t

the pmis look great. global surprise indices are rise riseing in a synchronized way. hard to be negative. i am talking about a counter-trend rally. you pointed out something like 30 basis points, 35 basis points. that's not exactly headline news. that's an amount of interest rate decline that wouldn't be consistent with fear, deflation, recession t is just a correction out of what was a pretty big rate rise with the rates doubling from 132 to 264 on the ten-year. it is due for a rally. i think the stock market continues to grind higher. we talked about this november 11th, judge, three days after the election. i said if the s&p goes above 2200, it's a go-with move, if it closes above that. it went up another 10% above that level. that was a good idea. i still think you are in the go-with mode for this. the problem for the stock market will be when we get the next leg up in interest rates. everybody is looking for 3% on the ten-year. i believe that is going to happen but first a rally. the pressure will come when interest rates are perceived to be rising again and creat