in the u.k., concerned about the five year maturity point to be underweight.ng? an interesting week on the political front with the transition deal, provision agreed. we had the inflation data which came in lower than expected. the strong wage data. how many rate hikes are be looking at? a lot of things can happen on both fronts, economically and politically, all things equal, how many rate hikes are be looking at in the next year or year-and-a-half? matthew: a review has been more hawkish than the consistent -- consent in the market. we think there will be a couple more rate hikes out of the bank of england. we think their focus is primarily on the labor market. the strength and the labor market data today as he suggested contrasted with the weakness in the inflation data temporarily perhaps, but none the less we think the bank of england will be more focused on the tightness of the labor market and high rates of inflation in the united kingdom. we believe that the bank of england will continue to remove policy accommodation, perhaps at a slightly pace than t

and we underweighted things that didn't do as strongly in the period. if you added that up, the positions of the portfolio added 52 basis points. manager selection which is the net of how your managers did against their benchmarks, that detracted 39 basis points. on the surface you say, gee, our managers didn't do as well, but if you look down the categories, it was private equity, one of your stellar performers, underperforming the index that was the source of most of that under-performance. remember, your private equity portfolio for the year generated 14.89%. if you got 14.89% out of your private equity portfolio every year over a long period of time, you would be delighted. but remember the u.s. equity market in 2017 was up 21% and your benchmark was to do 5% better than that. so the benchmark was up 26%. your private equity return 15. and when you multiply that by the percentage in private equity it appears to be under-performance. that is not a manager selection issue, that's a benchmark mismark. you would expect that over time to work itself out,

before today's racing got underweight, chris froome gave a speech to his manager, whose position hasn of the team back in 2010, there have been a lot of things that have changed, a lot of procedures and cheques that have been put in place since then. i mean, it is like anything. anything evolves over... the team started in 2010. what is that? eight years, nine years, the team has been going? naturally, everything will evolve. do you back the team printable completely? yes, yes i do. the paris nice race is not done as well. six stages we re nice race is not done as well. six stages were won by louis mollard. the researchers kept the lead. finally, english cricketers are taking on new zealand in the fifth and deciding one—day international in christchurch. there has went to bat. you can give today with all the latest with lime commentary on bbc live. and there are updates on the website. and that is all from sports day now. enjoy your weekend. you can follow everything here, but for now, it is goodbye. hello there. it is looking much milder as we head into wars this weekend. we have ha

jpmorgan asset allocation goes underweight bonds and are cruising -- boosting credit, 5% underweightually -- versus a mutual setting of 0%. short duration position is still extreme, in their opinion. the lines from japan, remaining fully engaged with the bond market. the adjustment rate can happen in theory before we hit the 2% target, but he is not considering adjusting the yield curve. there is a team live there -- tliv there. yield.t rise in there is a lot to deal with. there is trade, there is politics and tariffs, all on the platter for friday. don't forget the wages. juliette saly has your first word news. u.s. president donald trump has set up a race among nations and companies to win relief from his tariffs. as expected, he slapped a 25% tariff on steel imports and 10% on aluminum. mexico and canada have been excluded as nafta talks continue while trump through the door opened to further exclusions for countries and niche products. to protect our steel and aluminum industries, while showing great flexibility and cooperation toward those that botheally friends of ours, on a tr

.: it suggests you may overweight or underweight and cvs have a large composition of the index.are becoming less of a retail company and more of a health care company. i think that vision is attracting investors and i think it was a healthy test for the market, spreads have been volatile. it's good to see the deal get done, be well received, it got bumped and then it traded up in the secondary. jonathan: diana, despite all the drama that a lot of people have been obsessing over over the last week about who is in the white house and who is out and what happens with international trade, capital markets have been rock, open for business, if you want to bring debt market, having they? diana: yes they have. i think the cvs deal is a good example. for issue was and investors, -- for issuers and investors, it's and the right signal. in the u.s. ig space, we have noticed issuance is a lagging last year. it was quite refreshing to see a big new issue come through the market and trade well after. but this issue is also apparent in emerging markets good when you look at the em sovereign sp

underweighte not high-yield investment grade, but we have been moving up in credit quality and have been some time because spreads were so narrow and the premium you got for credit risk with low. i would agree to some extent. the other problem is timing. you don't really know when the cycle turns until it turns abruptly. we think it is time to dial back the risk. bob: i think when you look at bank loans, and this market today, things that we worry about our liquidity -- about are liquidity and crowding, and i can't think of a better example of double the risks than bank loans. you have a lot of people who own that class who don't understand it well. the second thing, the liquidity is not good in that market. you get crowding into liquidity, that is what we would sell. bob: i have been doing this 37 years. i don't remember a time when corporate america has had more financial flexibility. i certainly would not be a seller of credit in here. i think the horizon looks pretty good. when you look at credit spreads, high-yield in particular, you can build a model, there is only one thing to get

i am surprised we are underweight on u.k. equities.t is inevitable that the exit will happen in 2019, i think they are currently trying to test that a little bit between brussels and london. and maybe we have entered the stage of provocation on each other since there did not seem to be much moved in terms of what each side was offering or want during -- or wanting. we are trying to find out what it takes to keep britain in the eu. nejra: according to people familiar with the matter that bloomberg has spoken to, eu officials were fairly sure that the draft brexit deal would be unacceptable to theresa may, because they want the u.k. to .tay as close as possible do you buy that? and what does it mean? lothar: i do buy that. i think they are going down the wrong route. aroundnt to turn opinion , adopt eu framework. that might be a more important first step forward. what does that mean for the pound? it makes it difficult to foresee , as if we get a breakthrough or some unexpected movement suddenly, then the pound could make a strong move u

why are you seeing be underweight?is jump in facing two big headwinds by it part of the reason japanese equities had done so well is because it has been stable and allowed japanese margins to recover. i think there is some pressure coming in on japanese margins. the other is the japanese gdp recovery. if you put those two together i think you'll be set up for a big negative earnings surprise from japan. joe: one of the big anxieties has been the degree to which canng rate environments -- the degree stocks can withstand the environment. money inflating at all and the fed taking volatility out of the market expansion of the balance sheet, how do you see that tension playing out or is it overblown? ben: we think it is a tailwind for equities and the reason why we have more upside from here, i also think it means a lot for types of equities that you on. aggressive -- lisa: you are talking about the u.s.? yields are going to go down? two or three, it will be material from here, there is a ball flattening -- bull flattening.

one of them was 300 pounds underweight. all of the horses are being cared for and foster stables and are expected to survive. a neighbor who had been feeding the horses out of concern called authorities.>>> are deputy -- our deputy found a small pastor. saturated in mud and puddles of water. the horses were being forced to stand in the high water and mud. they looked unhealthy. you can see bones coming through the skin. they looked emaciated.>>> authorities have charged the owner of those horses with multiple felony animal abuse charges. he was released on $10,000 veil.>>> 92-year-old man recovering after falling more than 20 feet into a whale. he spent 30 minutes treading water before he was rescued. and ruben talk to him about how he is doing and the gratitude he has for the firefighters who pulled him to safety.>> reporter: 92-year-old ernest silva has a sore back. not to mention some bumps and bruises. this did not stop him from walking over to thank the fremont firefighters that rescued him after he fell down this 26 f

underweight wednesday afternoon. the lower foothills area of palo alto. please say a suspect armed with a handgun attacked a young girl as she was jogging.>>> she had been jogging along a path. right next to the roadway. she was pulled off the pass by an unknown man she did not know. who then stuck a gun to her head and sexually assaulted her in a green belt off the pathway.>>> she flagged down someone who call police. helicopters search from the air and on the ground heavily armed officers set up a perimeter. k-9 units help to search. by the time they got there the suspect police say ran away. >>> stranger sexual assaults with the unknown suspect an unknown victim are very rare in any city. they are particularly rare here.>> reporter: this is not too far from tesla's headquarters. it is frequently used by pedestrians joggers and cyclists.>>> pretty shocked. very saddened. that that happened.>> reporter: he considers the trail scenic and safe. he calls the news unexpected and upsetting.>>> is something you hear about often. when walking around the neighbo

one was 300 pounds underweight. a neighbor who has been secretly feeding the horses out of concern is the one who called authorities. >> to be went up there and found it's kind of a small pastor that's saturated in mud and puddles of water. these horses were being forced to stand and -- and sometimes knee-high water and mud. they looked unhealthy. you could see some bones coming through the skin and they look emaciated. >> all of the horses are now being cared for and are expected old -- to survive. the owner is charged with multiple felony animal abuse charges. >>> a young couple visiting the bay area from the midwest had their dreams dashed. these in oakland smashed the window of the rental car and stole a backpack that contained a diamond engagement ring. as ktvu's christina tells us, that ring is going to be used -- was going to be used in a wedding proposal but it was gone just an hour after they arrived at oakland airport. >> we've never been to california. >> reporter: some couples lean on each other and grow

we're more underweight in utilities and reads. >> good to see you thank you.ny mellon wealth management >> speaking of the bonds, let's go to the bond market and rick santelli tracking the action at the cme. hi, rick >> hi, tyler before we get to the charts, two-year note yields popped up to 28. they settle at 26 yesterday. so we still have this short end really sticky in terms of the rates and climbing the rest of the curve, virtually unchanged. look at one week of ten-years. yes, we spent time at the low end, we closed in the 2.80s. this would be the 15th day in the row, but we are drifting a bit. although today, most of the selling action happened early, just like most of the big buying action happened around 10:30, 11:00 eastern. now, if we consider what's going on overseas as our guest was just talking about, nothing gives you a better clue about that than putting a year to date of boons on with our ten year. obviously, they correlate, but boons are at 57, now below a key point at 60. they're up 15 basis points on the year, where 10s are still up 41 basis

.: it suggests you may overweightse names, or underweight, and cvs has a large composition of the indexink it is some of that, but it is also market reception. the market is buying into the fact that cvs is in a transitional phase. they are becoming less of a retail company and more of a health care company. i think that vision is attracting investors. and it was a healthy test for the market, spreads have been volatile of late. it's good to see the deal get done, be well received, it got bumped versus initial talk, then it traded up in the secondary issuance. jonathan: diana, despite all the drama that a lot of people have been obsessing over the last week about who is in the white house and who is out and what happens with international trade, capital markets have been rock-solid, open for business if you want to bring debt to market, haven't they? diana: yes they have. i think the cvs deal is a good example. for both issuers and investors, it sends the right signal. actually, in the u.s. ig space, we have noticed issuance is a -- is lagging what it was last year. we are still below l

julian: we are underweight in the u.k. not so much because of brexit. it's more about his relationship with sterling in the ftse. if there was catastrophe, sterling would fall and the ftse would rise. a handle more sterling is going. it's hard to predict the currency will behave. that was quite unexpected. stay neutral around sterling and in terms of the equity market, we are underweight area we think there are better opportunities elsewhere. now that we've had these three or 4% selloffs overnight across asia, having that makes emerging markets very attractive. they are already trading at around 70% of the valuation of global equity another probably even cheaper. e.m. is where the future lies. that is were the growth is now with the growth is in the long-term. anna: time back nicely to our top story with his market selloffs are overdone. thank you ray much. he stays with us on the program. if you are a customer, you can watch the show on the rig or television but you also go to the tv function on your bloomberg. there you will find the video stream

the one thing that gives me pause about being underweight or shorted, retail is very poor, and nike isding up very well relative to retail big moments coming i am a inclined to bet up but it's know going to be casual whatever happens. >> the question is would i be short this stock right now giving what i know about the space in general adidas had a massive rally after. i like the risk order. iske aring $1. i probably have a 45% probability in a week or so of being basically unchanged on this trade if you look at kind of the deltas that are in this option structure here if i get the direction right so to me i have five weeks for this thing to play out here. as long as it doesn't go the opposite way on a big gap higher i'm in the game. >> let's move on here. not just nike is reporting next week other big names including oracle, general mills, fedex, micron chart master says one of those stocks could break out >> all tech all the time let's talk about an old line tech. if we have got this analysis right it's about to break out. oracle versus its sector, one year chart, we know what it is,

he's a very underweight bird. he should be around six hundred.d underdeveloped could mean that he's been fed plastic. now, if we just gently put some water in. dr. chris: it's going straight down there. ian: filling up. here we go, okay. dr. chris: oh, wow. ian: look at that. dr. chris: so, that's actually been sitting inside his stomach. ian: yeah. dr. chris: that is an extraordinary amount of plastic. is that the top of a -- is that a juice container? ian: yeah. dr. chris: that's off an aerosol can, isn't it? ian: the seabird has picked them up, thinking they're food. dr. chris: you hear people talking about plastic being in the ocean all the time, but it's only when you actually see the living affects of it that you realize just how serious it is and the fact that this stuff, it's not going anywhere, is it? ian: that's right. this plastic is entering the ocean every day down rivers, off beaches, off ships, and it's accumulating, because the plastic that was around in the 1970's and 1980's, the '90's, is still there. it just doesn't go away. dr

the analyst maintained underweight rating and ge shares fell more than 4% today to $14.43. jeffreys meanwhile raised its price target on amazon to $1850. the firm says that amazon's market cap to swell to that magical $1 trillion mark by th ye2022. the analyst sites amazon's aggressive push to expand its advertising business. shares fell withhe rest of the marktd market today. it was down a fraction. >>> jcpenney was niche waited with an underperform rating ats credit su the analyst there says the retailer could close more stores and is facing margin pressure. the price target is $2.50. jcpenney clo up nearly 1%, though, at 3.28. >>> guggen time calls t-mobile e best idea in the telecom sector. the firm sites t-mobile's growtu ook, its conservative guidance and its shay of the handset market. thenalyst has a buy rating on the stock and a 80 price targe. shares w up a fraction to $64.98. >>> still ahead, the former ceo of aetna and t head of the cleveland clinics discuss the rapidly changing health care industry and their vision of the future. >>> cvs and aetna shareholders

the one thing that gives me pause, being underweight or shorted, is that retail is very poor and nike is holding up very well relative to retail big moment coming. i'm inclined to bet up it's not going to be casual, whatever happens. >> mel started just short, so would i be short this stock given what we know about the space in general we saw adidas had a massive rally. to me i liked the risk/reward. risking $1, i probably have a 45% probability in a week or so of being basically unchanged in this trade, if you look at the deltas in this option structure if i get the direction right to me, i have five weeks for this to play out as long as it doesn't go the opposite way on a big gap higher, i'm in the game. >> it's not just nike reporting, a slew of big names are out with earnings, oracle, fed ex, general mills, micron. one of those stocks could break out. >> all tech all the time let's talk about an old line tech if we've got this it's, it's about to break out oracle versus its sector, one-year chart oracling the laggard having basically underperformed its peers by 50% or its peers do

the industrial com eaton saw its rating lifted from neutral to underweight at jpmorgan. the analyst there says the risks andewards are more heavily balanced. therice target, $82. the stock down more than 1% to $79.59. >> and still ahead, why share buybacks have surged over the past few months. >>> a new develtoment in a that we've been following for you. georgia lawmakers overwhelmingl approved a sweeping tax bill that was stripped of a provision that would have befited delta and other airlines. that provision would have eliminated sales tax on jet fuel, saving the companies millions. this comes just days after the state's lutenant governor threatened to punish delta for cutting its ties with the nra. >>> walmart taking steps to limit its firearm sales. the world's largest retailer and biggest overall gun seller will no longer sell any gun to aone under t age of 21. it will also halt sales of items resembling sexual assauassault including toys and air guns. separately, a -okroged fred meyer will ban gun sales to anyone under 21. kroger and walma both said that the tragic

. >> morgan stanley is upgrading group onto equal weight fr underweight.hey call theer sell-off ne. the price target is raised to $4.40. the shares closed just above that at $4.49. monster beverage's rating was raised from buy to hold. they're encouraged byne they drink maker's innovation pipeline. price target is $63. the shares n were uprly 3% to $55.74. >>> and still ahead, some heavy hitters are helping kids learn the fundamentals of finance. >>> amazon is reportedly in talks to create checking account-.pe produc according to the "wall street journal," the process is the in its early stages and the proct would be aimed at younger customers and those without bunk ac. details, few, but the report states that the online retailer is not planning onecoming a bank. >> well, one account that manyo inve appear to be watching and changing is their 401(k). the volatility in the stock marketti is p quite a few of us on edge. sharon epperson joins us to cm us down. and some new numbers on how savers are reacting. it's great to seeyou, sharon, as always. >> good to

then underweight in the u.k.ly days of june of a year or two ago, coming up on an anniversary and they have got to adjust in the fixed income market. what will we see in the united kingdom full facing credit market as we leap into july of this year? andrew: the economic performance i think has been surprisingly good. we had a relatively optimistic view of economic prospects and it has been better than we expected. i think over time with each piece of incremental news that the market can price out some of this brexit risk, underweight the gilt market makes sense. andong the british pound u.s. dollar, and we have switched to that to be long british pound euro. that really hasn't moved and you have tail risk -- clearly downside risk could all come to the sudden stop in terms of the negotiations. ishink the risk of that incrementally lower. even if in the future u.k. potential growth is a bit lower than it would have been within the eurozone, i think the gilt market doesn't look quite right to us. francine: you alway

she and her five brothers and sisters are all underweight and hungry. the doctor is essentially measuring the circumference of the top of her arm, around what is her bicep, and if it hits red, then it's -- we can see here, it's just crossed over into the red, which is severely malnourished. shomokh's dad says they only have bread and tea to eat. even food's become a weapon of war here. sterling roop is an american aid worker. he blames both sides for the suffering and points a finger at washington, as well. >> our behavior in this war is a stain on america's reputation. we're not living up to our core principals as americans. >> reporter: and david, there's growing criticism of these mounting civilian casualties. much of the blame being pointed at saudi arabia. now there are calls from democrats and republicans for an end to american support and weapons for the saudi's war here in yemen. david? >> ian pannell and our team right there in yemen. ian, thank you. and much more of his reporting coming up right here on "nightline." >>> in the meantime, back h

the votes have been cast, ballot boxes sealed, and counting is underweight in sierra leone's generalports of a scuffle between police and the opposition candidatejulius maada bio, overcame of vote rigging. but reviews have been fairly positive. there have been 60 observers around the country. what they are seeing is also encouraging. this is not to say we don't expect a bump ortwo this is not to say we don't expect a bump or two here and there along the way, but thus far, things are doing well. the country is still struggling after the devastating bowler crisis and rebuilding the health system is just one of the key election issues. the economy is another, after the collapse in the price of iron ore, a key export. but expectation is high. healthcare, education, social services... clean water. these are operating.“ education, social services... clean water. these are operating. if god chooses a next leader, i expect so much from him. results are expected within a week. and if none of the 16 candidates gets 55% of the vote or more, the top two will go to a run—off in march. level wins,

the one thing that gives me pause about being underweight or short it is that retail is very poor, and holding up very well relative to retail big moment coming. i'm inclined to bet up, butit' not going to be casual, whatever happens. >> well, it's what makes the market just short it. the question is would i be short this stock given what we know about the space in general adidas had a massive rally after it i like the risk-reward risking $1 i probably have probably 45% probability in a week or so of being basically unchanged on this trade, if you look at kind of the deltas that are in this option structure here. if i get the direction right so, to me, i have five weeks for this thing to play out here. as long as it doesn't go the opposite way on a big gap higher, i'm in the game. >>> all right, let's move on it's not just nike reporting next week, a slew of big names are out with earnings, including oracle, fedex, general mills, micron chartmaster says one of those stocks could break out head over to the plasma chart. >> it's all tech all the time. talking about an old-line tech that,

your global methadone is of the the what you going to underweight the. bad is the wise hope would. be at a level that i don't and never missed in my story when they suffer because the words. a little bit not another story i'm a number two of them are you. feel you are they were high good luck neil for a long walk with tell me. you cool motivated talk up a little me on it. at last night's emmy still no one well as. you saw in their choice. on me and they were sure he. doesn't need to deal with the mess after thought we. last arsenic otoh we could feel was out there god was out there awake and we could fit any any of tamil numbers shock to your. god i was on the way. to feel. i. can read them i can do really and to come. to know. one you are funny we do work a bit open which. one mother we led to him when you want love to sleep. you know. what i will be then you have no just some more part why national will be sad that intimate. not a boss an enormous. amount of not a lot of then one of a kind of candy at yad it can it kill had the a. fee have a much more savvy. but then a lay in sev

active management or positioned the portfolio to be overweighted to the things that did well and underweighted to the things that did less well. the policy is what you would have earned -- >> my question is, base on the hypothetical, that you said, is that a trend? are we missing every year? >> no, no. it's not a trend. i'm going to show you in a minute, the under-performance versus policy is really the mechanics of one of your benchmarks being aspirational benchmark that has been different. >> for private equity? ye

. >> trading is up underweight in new zealand and the index is off about a third of 1%, and this is of saw all the major indexes in the u.s. finish weaker, particularly the nasdaq slipping 2% and facebook posting the steepest fall since 2015 and trading below its 200 day week average. we take a look at futures here byaustralia, we are weaker 6/10 of 1% and the nikkei futures out of chicago is weaker at 1.3%, we also see weakness in the aussie dollar. we wait on minutes of the reserve bank of australia's march meeting. they yen also unchanged on the greenback, and a quick look at commodities. oil is down for the first time in four sessions and iron continues to weaker with stockpiles and chinese sports. in the finance minister meeting. i am paul allen in sydney. more from "bloomberg technology" next. ♪ ♪ this is "bloomberg technology" and i am caroline hyde. our top story, facebook shares plunging, after it was reported that the political data firm got a hold of private information of millions of facebook thousand ahead of the residential election, and this selloff is a big buying oppor

the world's biggest asset manager said it is underweight while italy's bonds have outperformed germanyoned, as well as referral -- germany bund, as well as peripheral trades. 10-year in italy has been around 2%, as you can see from the chart. that hints some complacency may be among investors, so says blackrock. let's talk russia as trump and putin has spoken in the wake of the putin election victory over the weekend, maybe a one and one meeting. the index in russia has raised its march gains with the potential fallout of the poison of the next by in the u.k. -- of an next spy in the u.k. -- ex -spy in the u.k.. estimates trail 12 month eps, reaching its widest level since 2016. that is the bottom line. the top line as russian stocks remain attractive in the midterm because fundamentals always take over, so says an asset management. what is happening in the u.s.? julie: i'm not sure what the fundamentals are telling us today here. the directional's, especially as they had given up early rebounds. the dow banking on to its morning -- shanking on to its rebound this morning as we see wea

. >>> and heather bailey describes ethyl as being some 500 pounds underweight. eventually, she hopes to see all of the animals nursed back to health. and in the event of a guilty verdict put up for adoption. >>> beachgoers and wildlife officials are monitoring two whales apparently stuck in a shallow inlet. witnesses reported seeing the whales at about 11:00 a.m. officials with noah are investigating. the whales are stuck as we speak. officials are waiting for high tide to help coax them out. >>> the march for our lives. hundreds of thousands turned out across the country, but will it make a difference? and >>> instead of arming teachers with guns, we're averarming teas with the ability to communicate. >>> plus, the as want to become landowners. >> check out the land in walnut creek. their this is 680. that's heavier commute direction at this hour. the ask ask >>> the fight over stricter gun controls comes after literally millions of people marched across the country. now the question is will the ground swell make a difference in this november's midterm election

he noticed when he got the horse it was underweight and malnourished. he has been trying to put weight on it. we have evidence he had the horse longer than that. we have a statement when he got the horse it was in fine condition.>> reporter: dozen horses are all in foster care stable throughout the county thanks to an organization called change. >>> the stallions we help to pull out were shut installs and did not have access -- access to move around. >> reporter: heather took into horses. this one is 300 pounds below is normal weight. she said it is hard to know what went wrong. >>> if you get in over your head which is easy to do you need to take some responsibility and reach out for help and assistance. don't wait until you have animals starving to death.>>>>> reporter: ethel and all the horses are expected to survive.>>> police pull an suv from lake merritt. it's connection to a homicide investigation.>>> and uber driver took a wrong turn. the unusual sight outside a safeway store.>>> how thieves derailed a couples engagement plan during a quick bite

one of the horses was 3 pounds underweight. >> our deputy went up there and found it's a small pastureith saturated mud and puddles of water. these horses were being forced to stand in sometimes knee-high water and mud. and they looked unhealthy. you could see some bones coming through the skin and they look emaciated. >> all of the horses are being care ford -- cared for and are expected to survive. authorities have charged the owner of the horses with multiple felony and -- alan -- animal abuse charges. >>> a young couple visiting the bay area had their dreams dashed. thieves stole a backpack that contained a diamond engagement ring. they are supposed to be on a trip of a lifetime. but just an hour after they landed in oakland, there renter -- rental car was broken into while they were in and in-n-out burger near interstate 880. they didn't touch their luggage. but a single backpack with that engagement ring was gone. >> as i'm looking at the root window, i see someone grab a backpack out of my car because they had busted the window. he ran over to the next car and busted that one, t

rj: sure, because active management could be overweight or underweight, and cvs has a large compositionthere probably is some of that. but i think really the markets reception, the market is buying in to the fact that cvs is in a transitional phase. they are becoming more of a health care company, less of a retail company. i think that vision is attracting investors. and it was a healthy test for the market. spreads have been volatile of late. it's good to see the deal get done, to be well received, it got bumped versus initial talk, then it traded up in the secondary issuance. jonathan: diana, despite all the drama that a lot of people have been obsessing over over the the last week about who is in the white house and who is out and what happens with international trade, capital markets have been rock-solid, open for business if you want to bring debt to market, haven't they? diana: yes, they have. i think the cvs deal is a very good example. and for both issuers and investors, it sends the right signal. because actually, in the u.s. ig space, we have noted that issuance is lagging wha

people are extraordinarilily underweight overseas markets because they know the company is better existed forever. but i think it's been exacerbate ed because if you have not rebalanced, the s&p has so far outper performanced all of these country markets for going on seven of eight years now, but these other markets need a look. especially if you think that lower valuations will lead to higher return eventually because we're not cheap. even down 6% maybe there is a bit of a method to the madness so to speak maybe we do get better trade deals. >> that's what i've been saying. >> people hate that i say that but i think they see this production, which is insane. mercedes and bmw have to stop building their plants there and build them here. look, the competitive advantage is ridiculous. >> so you're a consumer. >> you say why, what part of the nafta negotiation. >> i think it is then the whole argument about defense steel is a lie >> no, defense is not a lie because you want to buy. >> so it for prices at nafta or is it because the rule they're using to do the tariff is defense related. it's

global asset allocation to emerging markets is still , even onlow neutral the underweight side of thingsg to come out of the u.s. with value rations look and -- looking pretty tested, there are emerging markets that fit the bill in those asset allocation weisions, so increasing ighting to those seems like a logical thing to do. rishaad: on top of this we have faced situation with the tariffs on the possibility of a trade spat. because of hit hard their dependency on global trade. what is the view on that? >> you are right. they could be. going on what has happened with steel and aluminum specifically, they are trying to work out whether this is more in the realm of president trump's rhetoric. we heard a lot about this in the election campaign. a lot of people dialed back their expectations for how a trade war would play out. what it has done in the last 24 hours is ratchet those concerns up again. we could end up with things getting wound back a little bit. it is not all black -- bleak for emerging-market assets. haidi: thank you for that. .alking about the outlook while most of wall str

in financials so you have yuan lever and nestle, a few big oil stocks i want to perennially be underweight europe relative to the u.s. >> come on over. as carter makes his way over here -- >> i think he's made a great point, sometimes it's not as simple as saying they're lagging and waiting if for ecb to do something. if you look at the top of the euro stocks, it's loreal, novartis, bear you have a bunch of companies that don't have the oomph within their name i think about this dynamics in europe are being held back by the ecb who meet this is week, so does the boj. i think rates have to go up across the european union. let's not forget, they're 2.3% gdp. >> there was a lot of flow last year into europe in that you were going to get this recovery but even then while it was up, it wasn't adjusted for risk. >> you don't think there's more bang in europe versus the u.s. based on valuations relative to the u.s. >> i'm long european financials. i think if you're going to own them, european financials are more geared toward a higher rate economies. i think siemens looks interesting because i do

regulatory overhang gets sorted out, it is a dragon t on the mat good news for us, we have been underweighted in favor of more value type sectors. hopefully maybe this is a catalyst that results in that rotation finally beginning to occur. but overall, i agree with sam. i think first quarter earnings will be good the economy remains very strong. there's a lot of stimulus still in the pipeline. despite weakness in technology, i think the rest of the market should do okay. >> sam, there's focus on the bond market, investors piling into treasuries. what is that signaling >> i think it is signaling that investors say maybe we overreacted, pushed the yield up too quickly. the belief is we could see a steep ening yield curve as the economy starts to show benefits of tax cuts, et cetera, but we probably got a built ahead of ourselves. and i think investors are looking for a self fulfilling concern in that gee, maybe things are rolling over. that was the word i heard frequently this morning, are things rolling over and are we worried about potential recession, if not here in the u.s. then certainly o

down today as morgan stanley says it is underweight reiterate that our traders debate that next firstler has a look at what's coming up on "power lunch. >> coming up on "power lunch", hope you'll join us. the facebook fallout is regulation ahead for the social media giant and its competitors and if so, what could it look like plus, the ceo of morning star talks to us exclusively about recent criticism regarding its rating system, the stars and the p firm's new funds and the fed back in focus. should investors make any chang changes to their portfolios? halftime report back right after this - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. at the mar

double upgrades to the shares all the way from underweight to overweight.e joined by abigail doolittle. this has been traumatic on the part of morgan stanley. what is behind this call? abigail: you are right about that, they posture change. really reflecting the fact that investors are taking this seriously. ,dam jonas and morgan stanley the biggest piece was valuation. if we look at the graphic dashboard, a good terminal to look at for this. we see the stock in a nice way. off the highs but still above average value. when i want to point to is the evaluation. 75% discount -- that is impressive. plus, adam jonas is saying that the f1 59 to be with 150% of the enterprise value. relative to conciseness -- consensus estimates, he says they appeared to be bottoming, and for 2018 we're looking at $1.75. a dollar $.21., that's $1.21. i could support stocks higher in the future. shery: this is an industry-related call? abigail: that is a great question. today we're just talking about fort, but separately morgan stanley seems to be positive on the auto sector. they

that will have a transformational impact in a market where we are already underweight.rlet: and the president talks about trade he is concerned about the trade balance and how the u.s. has a negative trade balance. as you look at non-us companies, trump has made clear tariffs will be on imports. but companies are free to build, create, and invest in the u.s. you seek momentum to do so the like that is that a valuable proposition to both operations here and invest and spend in the u.s. because of the lower tech space -- tax space? benjamin: if terrorists are going up on raw materials -- if are going up in raw materials, the auto sector already has and of good manufacturing operations here and out of the anybody wants to be strong-armed into making an investment that in four years or eight years from now might look like a bit of a white elephant. i don't think people are making significant investments on that basis of current policy. joe: global synchronized growth is a term with heard of a lot this year, is it applicable or somewhere the momentum is flagging? benjamin: i