this is a correlation. s&p versus 10-year yield. the bottom is the correlation. is ticking andn the negative territory. business literally alive heard for the last 24 hours. romaine: the significant is the patterns that people have relied on to base their traits doesn't really -- base their drades rades doesn't really apply a more. affecting 60-40 portfolios. bonds and stocks go together, that will wipe a lot of people out. will this time be different? rachel: a lot of people are waiting to see. people saying, we don't really know what's going on here. we have seen correlation breaking down in the past in an equity market correction. we have been talking about this a long time. people are waiting to see if this will precipitate that but what will be interesting is the cpi data coming up tomorrow. you would hope or my seat it reflected in the cpi. a lot of people are causing. david: you cover etf's. ec anything special? -- do you see anything special? rachel: we saw an outflow from iwb. that has a large cap product. 2.7 billion come out of that earlier this week.

you find all these ridiculous correlations. when the computer comes back with one, you think computers are smarter than us, so we have to trust the computer. >> we're giving our decisions to the computers. >> that's the danger. computers are doing really crazy stuff. you'll apply for a loan, and the computer says we checked your phone, and you answered your phone really quickly. that's a bad predictor of paying off your loans. >> i kid you not, there are ones doing that. >> i didn't make that up. >> there are industries saying we can predict things like -- you didn't make that up. i can't remember who it is, but i want to say somebody is working on something in which, okay, you have no credit history, but based on your behaviors, we can tell whether you're going to pay back a loan or not. he said it's possible they're torturing the data and going about it the wrong way. >> admiral insurance was going to price car insurance based on words you use on facebook. and they said, we don't stick to any constant set of words. the correl

backwards and it turns out to be extremely highly correlated with economic growth.that outcomes, notjust throwing money invest in your people and get that outcomes, not just throwing money at it, but it better outcomes, you're giving up all this potential economic growth and you are not going to be able to compete in the future. is this a shift in strategy for the bank was that the priorities have always remained the same investing in healthcare and education. well we saw, first we will get rich and as a consequence of getting rich, we will have enough money to invest in our people. that is not the way south korea, japan, china, singapore, hong kong... none of those countries did it that way. those countries all said simultaneously, we will invest in out simultaneously, we will invest in our people and see where that takes us. our people and see where that takes us. the focus has been on pushing donors to give more. we will continue to do that. instead of a supply driven approach, head of state, heads of government, ministers of finance, i hope, will come to me and

>> the correlation between stocks and bonds has been negative for the last decade this year on a monthly basis we're positive so that means this month, the last 40 days, bonds have lost close to $2 trillion. so 2 trillion lost in bonds before the stock pullback. most of the last 25 years bonds have been a cushion for stocks every time stocks have sold off the last 20 years, bonds have given a cushion. now we're selling off in equities, but bonds already lost $2 trillion globally now stocks are catching up so net net, this move of passive asset management, 2 trillion has gone into passive, and people will get their statements, they're losing on their bonds, they're losing on their stocks, that will force more selling it will probably be double or triple as long as the selloff was in february. >> george, as we talk about that kind of environment, if larry -- if he is right, we see a deeper pullback here, it stands to reason that safety assets like treasury bonds and notes, like the japanese yen, like swiss francs, like gold, traditionally viewed safe havens could catch a bid. we're not see

they were closely correlated with the intensity of the tremor. in almost every case they lived near the epicenter. the broken heart syndrome has also been studied in the united states. scientists at the university of arkansas identified almost 202000 patients diagnosed with cardio myopathy in 2011. .. .. rather than at the apex. now, why different emotional precipitants would result in different cardiac changes is a total mystery. but today, perhaps as an ode to our ancient philosophers, we can acknowledge that even if our emotions are not located inside our hearts, the biological heart overlaps its metaphorical counterpart in surprising and mysterious ways. apart from that, heart problems, including sudden death, have long been reported in individuals experiencing intense emotional disturbance or turmoil in their metaphorical hearts. in 1942, the harvard physiologist walter canon described cases of death from fright in people who believed they had been cursed, such as by a witch doctor or the consequence of eating taboo fruit. sometimes the vict

theerms of fx to equities, correlation was not as strong as you would imagine.munity have already put on their late psychodynamic. china slowdown trades, aussie dollar, kiwi dollar, positioning is very short. i really believe in the china slowdown story. there is always a positioning squeeze to be aware of. that is why dollar-yen really does stand out because if you want yields, the u.s. is attractive, japan is not. it's all unhedged. tom: you and daniel morris go down to francine lacqua's fancy italian coffee joint. when you do that, you say what do i need to do to buy equities? guy, can you acquire shares this morning? jordan: we can, we just a to be strong about it. what does well in late cycle is value stocks. what does poorly is growth stocks. tech has been a big part of that. this is a pain trade when things are good and everybody is talking about higher growth, that is a trade that does not do well. when it is late cycle, you go along value and short growth. fancyne: the italian coffee place is starbucks. let me show you our chart of the day. this is look

correlations have come down slightly.h s&p 500 even though they have come down a bit. on thelook at a chart story crossed assets, oil is higher on the year, the dollar is a bit higher, and other than that, a sea of red. overall, the industry is having a tough time not just this month but structural issues. an inability to safe investor's money is not going to help, is it? katherine: that is absolutely true. we are also coming on the deadline for people to pull the money at the end of the year, november 15. if conducting -- if things continue bad, we will see a lot of reduction. . don't miss this, rounded to of the presidential elections. joe: and i will be watching earnings out on tuesday. romaine: an apple reports its earnings on thursday. caroline: that is all for "what'd you miss?" romaine: "bloomberg technology" is next. joe: have a great evening. this is bloomberg. ♪ ♪ emily chang san francisco. this is "bloomberg technology." the tech wreck is sending stocks sputtering. amazon in alphabet are among the companies pum

if you look at the correlation between the individual stocks in the s&p 500, those correlations have dropped into september. that showed investors were being a little more discriminate about picking individual stocks. but you see that correlation has started to rise and that is a sign people are being very indiscriminate about what they are selling. we saw that earlier in the week where it was broad-based. pretty much every index out there you had 96, 90 7% of those indexes being sold off. that was a sign investors of a whole were much more fearful of what was going on. vonnie: plenty of companies beating on the earnings front. >> it doesn't matter. it is all about margins and margin compression. the eps beats, revenue are fine. when you look at the trajectory of gross margins and operating margins for smb companies, it has started to level off. more importantly, the forward expectations have leveled up tremendously and have started to come down. folks are not buying the idea that these companies have these costs under control as we head into 2019. we see labor costs rise, material c

. >> the thing here is that mcdonald's, and you'll see this in the first chart, is more correlated to the staples than it is to the consumer discretionary sector it's the third biggest weight in the xly, but i wanted to start with this chart. here, of course, is the consumer discretionary sector which mcdonald's is in, but you can

of a style the stock market over the over the walled stock market or with other stock market no correlation isn't that great but if we are talking about the commodity aspect or the secret weapons of or oil or anything of that nature then yes the correlation is as strong as it can be all right now i must i'm going to talk to thank you and that's our show for this week about remember you can get in touch with us via twitter use the hash tag a day see the see when you do all proper so the e-mail counting the cost of al-jazeera dot net is our address there's more for you online to around zero dot com slash c.t.c. that will take you straight to our page which has individual sports links and entire episodes to catch up on. that serve for this edition of counting the cost time sam is a ban from the whole team thanks for joining us news on al-jazeera is next. he was malaysia's prime minister the nine me until his government was drawn out of the scandals and allegations of corruption in an exclusive interview one on one east speaks with knowledge you present on al-jazeera eighty percent of the visua

correlation between stocks and interest rates?eter: right. high rates seem to be hurting stock markets recently. romaine: how many times has this happened? peter: it depends on how you one person counts four times. signal whenish people start to worry in the sense that the rate goes up, and stock prices go down. seenis because it is now -- inflation is starting to get at the fed target. if it goes above it, the fed will tighten and that will be bad for stock prices. caroline: and it is a competing investment once again. you're finally getting some yield. peter: and you should expect stocks and bonds to because the two each other for that reason. you could make a choice between stocks and bonds. a yield of 3.2% on the 10 year treasury is pretty handsome compared to the dividend you see in some stocks. it's understandable why people moved to the bond market. caroline: i'm interested in the pickup of volatility we see there. this whole moving rates higher is not new. we knew this was happening. phrasenot the turn of that jay powell s

the correlation between oil stocks and brent, at a two-year high.as this been reflected in earnings? brent is up 19% year to date. >> we have not seen the oil report yet. that is a really big sector that analysts are looking at. the oil sector is supposed to lead the earnings growth. for example, yesterday morgan stanley said they are expecting european oil earnings to be up 45% year on year. a huge number. so much higher than other european sectors. a switch backt of into valuations. analysts are saying banks could do well. what are we expecting? >> with banks we see a nice start to reporting in the u.s.. that could bode well for european banks. the situation in europe is different. the ecb is very reluctant to hike rates. we might see a rate hike next year. with of financials, it could be more of a mixed picture. analysts have been raising their outlook for european financial earnings. >> when you talk to investors, they are always like, earnings, all about the earnings. how vulnerable are european stocks to what is happening in the u.s.? >> very

it was very correlated. it was a broad market selloff.fter the february and march rout, we had various groups lead us higher and other groups lagged. that was very concerning. i think it was closely related to the trade war and a tariff situation. -- the terror situation. that could continue to happen again. this time, groups like financials and industrials are not at the same levels of technology and so forth, so they have the potential to become very bearish very quickly, and again, that is what is concerning to me. i think people have to be a little careful to just assume this is just like february and march and we are going to go right back up to highs. shery: today, we heard the u.s. budget deficit grew to $780 billion in president trump's first fiscal year, so the highest since 2012. we are now hearing from the treasury that he has to step up the pace of debt issuance. when you also have this playing and as a factor into the markets, what are the implications? quint: that is a very good question. again, we may see some inflationary

of a style the stock market over the over the walled stock market or with other stock market no correlation isn't that great but if we are talking about the commodity aspect or the secret weapons of or oil or anything of that nature then yes the correlation is as strong as it can be all right now i must i'm going to talk to thank you and that's our show for this week about remember you can get in touch with us via twitter use the hash tag eight days easy see when you do all proper so the e-mail counting the cost of al-jazeera dot net is our address there's more for you online to around zero dot com slash c.t.c. that won't take you straight to our page which has individual sports links and entire episodes to catch up on. that serve for this edition of counting the cost time sam is a than from the whole team thanks for joining us news and al-jazeera is next. carcinogen. a journey of personal discovery by a great grandfather he was a slave of the lead property al-jazeera as james gannon explores his family's legacy of slave ownership you know like my family's status and wealth has benefited fr

of a style the stock market over the over the walled stock market or with other stock market no correlation isn't that great but if we are talking about the commodity aspect or the secret weapons of or oil or anything of that nature then yes the correlation is as strong as it can be all right now i must i'm going to talk to thank you and that's our show for this week about remember you can get in touch with us via twitter use the hash tag a j c z c when you do all drop us an e-mail counting the cost of al-jazeera dot net is our address there's more for you online to around zero dot com slash c.t. see that and take you straight to our page which has individual sports links and entire episodes to catch up on. that so for this edition of counting the cost time sam is a than from the whole team thanks for joining us news and al-jazeera is next. u.s. citizens obstructed from saving their families as the crisis in yemen worsens some have fled the horror of war only to be entangled in bureaucratic limbo with their lives and dreams of a future put on. hold lines explores the old tool effects of tru

you have been looking at the correlation during the selloff. earnings season, we usually see equities break the lockstep move from the macro side of things. that is not quite playing out for some. >> it's not, and i think it tells us quite a lot about how the macro is cinematic to really driving this market at the moment. kind ofere in some way excited going into q3 earnings season. they thought finally we could get rid of talking about the trade war and some of the big geopolitical problems, and we can start talking about company fundamentals, and what's happening is companies are telling us the details of their businesses with these releases, and a lot of that is getting washed out on the bigger market moodthis chart shows it pretty . this is the relationship of stocks within the s&p 500 and how they are moving within themselves, and it shows you that correlation is holding up pretty well. the trade war, the crisis in italy, some of the global thematics around the trade war, all just being put to the side dominatingjust proceedings, and what

joe: let's talk about correlations. onot of people are focusing them.ay we have the strong rally in long interest rates. will this be something that persists that bonds will do well if stocks have a bad day or are we entering a new era here? krishna: i think bonds -- all we need for equities and bonds to -- only fore equities is bonds to remain stable, then we can say the fed will probably not tighten forever. that is all we need. we are not getting that just yet because the real data has not slowed down. caroline: let's talk about breaking news because it seems the treasury staff advises mnuchin that china is not manipulating its currency. it will not to be labeled as a currency manipulator. i want to get your take because, interestingly, we have talked of xi jinping and china meeting with president trump. do you think there might be data in terms of the trade tensions with china in the u.s. as we see the markets react in this way, trump has said it is not because of trade tensions. do you think they are backing away from tensions to ease the selloff?

positively correlated. down here, this is the correlation, corr. there is only a few periods where they're negatively correlated like what happened now. this is where an issue starts to come in. let me pull this together real quick. we went negative here in '80s and '90s saw market volatility. we went negative here in 2000. we stayed negative, came back to unchanged, went back down 2009 and here we go again, we're going negative again with the divergence between bonds and stocks >> what does that tell you bam, bam, bam -- >> i think the exception is inverse relationship between stocks and bonds we're going into the exception period this is the reason we're seeing the volatility. moreover, if we go to the next chart, just the 30-year bond by itself, regardless of how you draw a trend line, on the 30-year bond, we lost uptrend support. this is a 38-year break in uptrends and bonds. >> what does that tell you okay so that means that yields will go higher in your view >> i think if technical analysis is history is any guidance to what is happening in t

shery: when you are seeing this environment, and you see the correlation weakening, how important are earnings? >> absolutely critical, because we are increasingly losing the support. we are going from an accommodative environment to incrementally tighter environments, which is taking the wind out of the sale of the s&p 500 valuation. it makes price-performance entirely reliant on earnings trends to carry the stock market. therefore, earning seasons are of heightened focus. we seen us play out over the course of the last several earning seasons. companies get rewarded by the market, and the companies that miss truly get punished. and more so each quarter as the quarters drag on we get dependent upon earnings, making the upcoming season incredibly important for driving performance for the equity market. shery: there seems to be a high bar, we are looking at how analyst revenue forecast is up, and sales revenue is also up, which are the industries or sectors where you are seeing a breakdown? the positive side, the most aggressive elements are coming from industrials and technology. we a

of a style the stock market over the over the walled stock market or with other stock market no correlation isn't that great but if we are talking about the commodity aspect or the secret weapons of or oil or anything of that nature then yes the correlation is as strong as it can be all right now i must i'm going to talk to thank you and that's our show for this week about remember you can get in touch with us via twitter use the hash tag eight days easy see when you do all proper so the e-mail counting the cost of al-jazeera dot net is our address there's more for you online to al-jazeera dot com slash c.t.c. that will take you straight to our page which has individual sports links and entire episodes to catch up on. that search for this edition of counting the cost time sam is a than from the whole team thanks for joining us news and al-jazeera is next. november on al jazeera radicalized you a new hard hitting series comes face to face with the hatred and violence of militant groups that attract young people around the world on november fifth the u.s. will impose additional sanctions on i

it shows the correlation has been positive. they say that is not good normally. most of them move in opposite directions providing a hedge. that is not now being seen. that is concerning investors. there is no place to hide here. when you talk to analysts and they said this was not a panic. they did not have investors panicking so much as looking to deleverage and reduce gross exposure. some longs, buying ink and removing some shorts certain areas. you saw a lot of adjustments. if we go into one more bloomberg , the spike in the vix, we talked early -- the other day about the super spike. the timing is the issue but these charts are telling us the volatility is likely to continue. >> thank you so much. let's bring in wells fargo investment president. thank you for coming in today. what a day for the market. sue was telling us about the bond and equity inverse correlation area did when we see such an environment, what does it mean for earnings? >> earnings are really important because that was part of the concern that sparked the selloff today. it was a concern ab

when you look at the stock correlation.talked about how stock correlation really rising has been one of the issues and front and center when it comes to the selloff. the correlation is not what we saw back in 2016 or 2050. darrell: you want to see the correlation a little lower. that will tell you the selling is a little less indiscriminate and the buying is less indiscriminate. people are making individual decisions about stocks. when you look at the other metrics we have like the 52-week highs versus lows, this selloff was much more severe given the number of companies taken out versus what we saw earlier in the year. valuations were already low and never really recovered from that, but it was kind of a signal there is some reticence to push those valuations back up to where we were. some companies are being rewarded like microsoft because they are showing they can manage through this, but there is no reason to get back into them. that is what is going on. does that rate and opportunity? are some stocks becoming undervalu

street, a decades correlation presumptively, and negative correlation in bonds.hether you are 6040 or a risk parity fund, stocks are following because we think the earnings outlook is deteriorating and that is for growth. outlook keeping things is that is it could be. if you look at the 52-week correlation between the s&p 500 in the long bond etf, it is the most positive it has ever been. that is telling you you're no longer getting the cushion, and that is the scariest part for investors, the idea that there might not be a place to hide. the nasdaq has been the laggard of the industry in the last several sessions. is this a separate trade or is it all connected? >> we are having short-term and longer-term worries. we're's ring the companies reduce guidance below analyst expectations, heading into earnings season as it unfolds, and at the same time, rising rates, the discount rate you apply to longer-term earnings should be coming up and effectively, your earnings, obviously it has been a big winning sector and a high-growth earnings sector. i think when you look

there is a high correlation. i believe the energy sector is well positioned i think people underown. >> what's defensive in juror environment. >> going back to the rates between 2 and 10, the fact that winds out lab is why you saw the outperformance in the bank stocks but it gave up a little bit. so the spread is at 31 bips op it leads me to believe. >> you're ready to rain on the banks. >> i am. it leads me to believe -- i think it's important to remember a couple months ago we had q 3 out of sitdy group and jp morgan and they are not higher from point. we had a quick spike and now lower. the yield curve increasingly gets to that inverted point. tony is going to have at it with us on that pretty soon but i think that's the thing that keeps banks underperforming in the broad market. >> he introed the guest. it's almost worst than buy. >> they pro mowed him in the "closing bell." >> all right not just rising rates hitting the markets, our next guest two other warning signs indicate a correction tony divider is at

more worried personally about the correlation if this were driven by inflation. the fact that it is driven by real rates implies that if the selloff gets too bad, the fed's circuit breaker, is very much in effect. scarlet: i'm looking at today's worst performers. the big tech names. for the week, they are higher for the week. when you look at some of the weakness in tech, you have to wonder it is part of the let's get out of a growth stock, but the bloomberg scoop about a chip pack has to play into this. -- hack has to play into this. joe: i want to get your take on that. it feels like the anxiety over in china and concerns about the integrity of international supply chain could make people wonder about the strengths of some of these tech companies. there are things to worry about in tech. there are all those things you mentioned and the likely regulation coming out of washington for some of the social media companies. we are right up against an election so we will see what the aftermath on that looks like when it comes to the regulation of these large tech cap c

is there a direct correlation to something, or is there a presumptive correlation to something or anluential correlation to something? >> great question. most of the offenders used to be what my friends jack levin called thrill offenders. they appear to be shrinking, and they're not as violent as the smallest type of offenders called the mission offenders. they commit a tiny percentage of the hate crimes, but when they act, they are more lethal. what i think we're seeing now with the rise of white nationalism and after charlottesville these groups imploded and their leadership are in disarray. these loners in small cells represent the biggest threat, and this guy make no mistake is a nazi. i looked at his page. he's a nazi through and through. what we have to do is to have political leaders stand up. one quick thing, bear with me. election time 2016 was the worst month for hate crime in 14 years. my colleagues and i have found, and the day after election was the worst day, that's 2016, the day after the election when we had an anti-muslim bomb plot that was the worst day since 2003 a

active participation in extracurricular activities correlated with a 141% increase.'s incredible. so if kids are involved in things, it may result in greater participation in politics. >> yeah, it's the difference between sitting back and having somebody lecture you about how the system is supposed to work and going and doing it for yourself. if you had to sit in a meeting you know democracy is ineff inefficient but it's also the best system for harmonizing and compeet competing interests. until you've lived that experience, just getting out of a textbook doesn't do it. >> gives us a framework for ow disagreements. yoni applebaum, washington bureau chief at "the atlantic." >>> i'm joined by duwana thompson, a former national deputy director for community engagement and african-american engagement director of the dnc. thanks for joining us. one of the things we have seen in the last two years is where african-american and minority votes have made a difference, particularly in the election of doug jones in alabama. >> yes. >> to the point that yoni was just making, are

again, you can't really see much correlation.ere are a couple outlier dots, clinton in 1994 where he lost a lot of house seats as we know, even though consumer sentiment was reasonably high and obama in 2010 lost a lot of house seats even though consumer sentiment was also reasonable. then on the right side you can see clinton and bush in 2002 and 1998, so it's all over the place. but let's turn to the third chart which is really the most interesting one and this really -- this charts the president's approval rating against how many seats were lost. you can see here there is a very high correlation. there's actually a 70% statistical correlation the way statisticians do this math. what it implies is that at a 40% approval rating which is gallup, the same numbers that are used in all the dots on this chart, you can see it implies a lost of about 42 seats for the president. now, again, there are plenty of outliers. you have president obama all the way over on the left in 2010 who lost over 60 seats despite having a 45% approval rat

>> it tends to be through equities or correlating markets. we own it, for example, shell in terms of direct holdings. very highly correlated with oil, that is how we are playing it. futures can be a tricky gain -- game. losing money from -- even if you get the direction right. we tend to be a more correlated out rate -- asset rather than the outright. nejra: you said you are looking for price to go down next year. if we get to $100 are we likely to stay there? >> no. $100, would got to that be more harmful to the global economy? or do we need to go for $120? that would probably mean for the oil importing western economies, the economies i look at most closely, we would have to cut our forecast for next year by 0.2% if we settle their. if we briefly get there, who cares? but if we settle there, that would be a modest break on real income growth. you would have less money to spend on other things than petrol. it would probably not be a drag for the u.s.. the u.s. is a big oil producer, not just consumer. for the big net consumers it would be a

those correlations are near their highest for the year.hey are being painted with the same brush which is generally downward. what is caused for concern is that even if you perform well in terms of earnings growth, -- the big concern is that you are not willing to pay as much in earnings as people used to be. it has come down for the nasdaq 100, but the premium to the market is still at its highest point in 2017 and higher than any point in 2016. this selloff is about "we are not sure about tech's earning power" then tech can get a lot worse. emily: let's dive into specifics. if you look it out, the miss was narrow -- look at alphabet, the miss was narrow. why? tom: companies would die for some of the growth that amazon is getting and we'll get based on their forecast. remember, this is a company that has been outperforming on one level or another quarter after quarter after quarter. if it does not really outshine expectations in a big way, and that is certainly what is happening now, there will be disappointment. the other thing people ar

kate: certainly, in the barclays study, there are some marks that correlate with higher returns, decisionspms can make that will have an impact on their performance. crowded this, so stocks that are popular amongst hedge funds that we looked at, and we saw a negative correlation to performance from that exposure, or more exposure in this segment. point outd i want to we have a great story about hedge fund hotels, which are performing very poorly the past couple of days. guy? guy: europe feels like it is on a different planet compared to the u.s. markets. what does the study find? what are the people you talked to telling you about the in performance that exists across the atlantic are --going to see a switch atlantic r we going to see a switch? kate: we looked at the geographical performance, and while we saw increased or better performance on an absolute return basis from u.s. focused managers, we saw better out returns from europe, which is interesting. vonnie: kate holleran, u.s. head capital solutions, thank you. let's get to economic adviser larry kudlow. a report there is right now i

we are seeing this correlation start to break down. that is the one thing to watch.absolutely. it is usually good because it singles -- signals demand up to a certain point. it continues to hold roughly to gains. opening thessia tax, pumping an extra one million barrels a day. but the market seems to be largely ignoring the extra supply. president vladimir putin says that donald trump is at his own doing. have a listen. >> it seems to me that our american partners are making a colossal strategic mistake. they are undermining the trust in the only one universal reserve currency. they are undermining the faith in the dollar as a universal tool, cutting their own throat. it is strange. unbelievable. i think that this is a typical mistake of any empire, when people think that nothing will happen, that everything is so powerful and stable, that there can't be any negative consequences, but consequences will come sooner or later. russianearlier, the energy minister told us uncertainty over global supplies and the iran sanctions will continue to drive oil higher. >> the mar

not correlates with very desirable by like an increased risk of inflammation as in the pool. and sterility is vital in hospitals but excessive cleaning and fear of germs have become part of everyday life which is bad news for us and our bacteria. is a gastroenterologist at berlin's shyte a hospital. every day she sees increasingly young patients who suffer from chronic and to write is an inflammation of the intestine that conses swelling and bleeding in patients with enteritis the microbiota is also thrown off balance leading to a decrease in good bacteria and an increase in bad bacteria plus bacterial diversity is lower than in healthy people. it's not yet known of these dips and good bacteria cause diseases but one thing is clear in the intestine the bacteria are operating alongside the body's defense systems. so i know if you think about the surface of the intestine a quarter or half a soccer field that's a big surface. and everywhere under that surface terrorist cells of the immune system there are so many it's clear is that this is the main part of the human immune syste

the correlation is indisputable. correlation does not prove causation. but if you believe one of the most important functions of criminal law is deterrence, then an increase in crime should be followed by an increase in prosecution. reinvigorating federal drug enforcement is one important part of the department of justice strategy. in october 2001, 1 month after the deadly september 11th attacks, attorney general john ashcroft recalled a time when attorney general robert kennedy found a scourge of organized crime in america in the 1960s. as a result, ashcroft explain prosecutors are action oriented, pursuing cases rather than waiting for cases to come to them. investigators focus on function not form and focus on doing what was necessary to get the job done rather than what was dictated by the organizational chart. attorney general kennedy made no apologies for using all available resources to solve the problem. attorney general ashcroft warned the history judgment will be harsh if we fail to use every available resource to confront an imminent threat to

i think mike talks about this move that we have in rates and what is the correlation to the leverage that's in the market on the part of corporations and on the part of stek lators. you think to yourself for a second the s&p 500 tops out on september 21, how is the speculative fever, till rate was $101 square. it's $69 today it's similar to what we witnessed in december with bitcoin topping out and a month later, the market rolls over again. i focus on the fact that if you're in an environment where the market is questioning leverage levels and if the ability to have deep liquidity is there, momentum as a strategy is going to correct itself and i'm focused on that and i think 100%, that's what's going on right now >> so mike wilson, you think that this move into value over growth has some staying power? >> yeah. look, i mean the question is how long the narrative for the year is that we're in a rolling bear market many assets around the world have been hit by 20% or more >> you want to hear a stat >> sure. >> 66% of the s&p closed in correction or worse. >> there you go. the press ha

a good global incoming currency fund, pretty low correlation to anything that goes on in u.s. stks, infrastructure ten to -- to act a little differently than the stockma et -- and particularly if you think that the democrats will take control of the house might get a great infrastructure bill out of ngress. knows are ways to protect the portfolio against the volatility. butls i would be letting cash accumulate as you sell the winners. and really look for companiea franchisers in the industry that can grow free cash flow and ---en a the top line can be companies like home depot and mcdonald's, growing the divides, 22 andy 15% a annua respectively. those are companies providing protection in a declining markei . and have the opportunity to appreciate. >> and i see you say maybe global bond fund. would you go into the -- to the short end of the -- of the bond market like the 2-year or the 3-year? >> well, so -- son the u.s. i would absolutely do that. globally, these funds havant ability to troll the globe looking for t best currency, bond return. they make that disionor you. but

they both -- they don't just correlate magically. what is actually going on causally during these years. we can ask questions about what is going on there. at the end of that. or towards the end that is represented, you have this representation that the united states end of the world and above all wired. the internet opens to commercial traffic in 1996, bringing united states into the world and every household into this global network and internet -- an international work of network and wired magazine and other dedicated boosters of the internet and at the age of silicon valley punch for viewership want to assure comments hard to say, that the united states are wired together. any problems like the political polarization where the income inequality do we've been suffering will be solved by the internet. 1999, 2000, even 2001. there is a no restraint in the utopianism. it's quite interesting and in some ways unparalleled. the sense that there is a disaster that has befallen the otherwise never before attacked on the continent united s

i think there is probably a good chance that there is a correlation right there. overall to comes celebrity endorsements or celebrity activism, i think people certainly pay attention. the tougher thing to prove his whether they actually take action. whether af skeptical, celebrity that says vote for this candidate, or whether a celebrity says, take this action, actually has a huge impact. and one of the reasons is, especially for younger voters and younger activists, they are with messages these days. and i think a lot of things just get lost in the shuffle. there is so much coming at you that i question whether the impact is as great as maybe it was 10 years ago, when we saw for example oprah winfrey endorsed president obama. that seemed to have a big impact on his campaign, especially in iowa. david drucker is a reporter with the d.c. examiner. he tweeted yesterday, asking in support of celebrity entertainers is a bipartisan exercise politicians of both parties practiced for years. when can it backfire? it can backfire when a celebrity gets out there and , kind

because the closest correlation higher isollar going expectations about fed fund rate. it's all interconnected. trade played a role in boosting the dollar. market lookingmark for? war isthink the trade going to get worse, doesn't look will capitulate soon. >> the market need to see some and other central bank action that suggest they're starting to take their foot off the accelerator. it's not just the fed we have to worry about. ecb.also the they suggest they will continue to go forward with the plan to tapering at the end of the year. i would expect if the situation were these two major central banks do try to get more devilish. >> the election is coming up in a week from tomorrow. how much is that sort of what people are interested in as far as interaction and people on the terminal? >> kristina makes a great point. the uncertainty is part of the equation. the market doesn't know what to back now. which party clarity would win, if it was obvious consensus that one party will the other, ie or more they'll be comfortable. 2016,emember going into thenot only most people

and causation you know that's yet to be determined oh there's a direct correlation. remember during the campaign trail the need to revisit all these trade deals bring manufacturing back to united states and bring back jobs to the united states and barack obama at the time were you just can't do deals these are deals reshowing deals we can't redo the deal i'm an effectual into work there should be a european mill. in europe you know that was proved wrong everything. he would do he is doing so the only problem as i've identified for a while is that this will cause inflation and you are seeing that pop into the economy now so interest rates are moving higher this would mean that bonds are going to move down and would challenge markets in. so inflation is happening gas prices are moving up as long as wages are moving up faster than prices trump is ok if in fact that doesn't occur and you've got prices spiraling out of control then he's in trouble again like i've got to read their own words because these words are pretty spectacular when we're only a few weeks away from t

it's almost a one for one correlation. so whatever he's saying on any particular given day probably just reinforces where people are already, but you know, the truth of the matter is he is going to be creditor or blamed regardless of what happens on election day and regardless of whether he chooses to accept blame for that. >> let's talk about your former boss, ted cruz. he just came up a second ago. one of the highest profile races we're watching between senator cruz and beto o'rourke. the big debate was last night. this is just a sampling of the exchanges. >> senator cruz is not going to be honest with you. he's going to make up positions and votes that i've never held or have ever taken. he's dishonest. that's why the president called him lying ted, and it's why the nickname stuck. it's true. >> it's clear congressman o'rourke's pollsters have told him to come out on the attack. if he wants to insult me and call me a liar, that's fine. >> president trump gave his strong endorsement on twitter today, but, chris, i mean,

tariffs doing to those earnings so there is a correlation between the earnings reports from current from corporate america and what is going on in the in the real and in the political world. so a broader snapshot there. there for us in new york thank you. over to europe now spanish taxi drivers have claimed a victory over app based ride sharing services like in a close vote the spanish parliament set a ratio of ride sharing vehicles to traditional taxis with more favor given to the louder right here in companies see a silver lining. was celebrations erupt even a tear of joy is shed taxi drivers gathered outside spain's parliament as the vote was brought to the floor. spanish lawmakers gave the kevin what they had waited for a resolution regulating based right hailing services in four years time only one right hailing the call will be permitted thirty taxis. own separate today the first stone has been laid and from now on to get there we will begin to build the foundations of a taxi service that nobody will knock down in any court of law no i do not have any group because of the new law c

of a style the stock market over the over the walled stock market or with other stock market no correlation isn't that great but if we are talking about the commodity aspect or the secret weapons of or oil or anything of that nature then yes the correlation is as strong as it can be all right now i must i'm going to talk to thank you and that's our show for this week about remember you can get in touch with us via twitter use the hash tag eight days easy see when you do all proper so the e-mail counting the cost of al-jazeera dot net is our address there's more for you online to around zero dot com slash c.t.c. that will take you straight to our page which has individual sports links and entire episodes to catch up on. that sir for this edition of counting the cost time sam is a than from the whole team thanks for joining us news and al-jazeera is next. november on al-jazeera radicalized youth a new hard hitting series comes face to face with the hatred and violence of militant groups that attract young people around the world on november fifth the u.s. will impose additional sanctions on i