look at 160 billion that bridgewater managers.leverage to it. the exact market exposure should be much higher than $160 billion. $3 billion is not a massive debt. it is one of their bets did vonnie: italian banks hold more than just sovereign debt than the of their peers in france or germany, 10% is in italian bonds. shockappens if there is a to the entire economy -- i italian economy, or if the coalition does not impose the types of changes market participants are looking for? does that put italian banks in trouble and is that what bridgwater is betting on? >> a possibility but the market is saying something else. it is widely expected that italy will have a hung parliament. and some of the risks are factored into the market. banks are rising. there is no death we will know in a few months time. mark: how have bridgewater --rts paired over the years fared over the years? >> over the last three months when they rose the bet from $1 billion to $3 billion, the majority of the shorts have risen and so bridgewater is losing money on t

despite four trillion dollars in global losses equities could be set for an even hushes shakeout bridgewater warns this won't be over in a matter of days it says that being a lot of complacency building up in markets over a long time will gauge the mood with our correspondents in frankfurt in singapore in a moment first let's bring you up to speed after a strong start hunks hang seng index finished the day down zero point two percent in japan markets were closed due to a public holiday but last week the country's benchmark nikkei had its worst performance in two years in germany the dak shed ten percent of the last two weeks but observers here expect a recovery of sorts speaking at a conference in dubai on sunday i.m.f. managing director christine lagarde told investors not to worry about the market fluctuations those markets movements were clearly in our view necessary market corrections the markets have function well there is plenty of financing that is still available to finance the economy analysts will be keeping a close eye on u.s. consumer price data on wednesday given that it was fea

the number of shorts bridgewater has hundred last week. world's biggest hedge fund has third point what -- 13.1 billion dollars in leisure. the 3.2 billion that they disclosed on february 1. bridgewater's call against oil giants hotel is its lars -- largest disclosed shareholding in europe. india agreed to pay $600 million for a 10th of one of them are its biggest offshore assets. it has agreed to a 40 year contract for rights to pump crews -- crude. some teens and switzerland have learned that now is the ideal time to consider a leave or sabbatical. that is according to people with knowledge on the matter. they say the head of the swiss universal bank unit wants to cut 1600 jobs by the end of the year. the company said it does not actively encourage its employees to take an unpaid leave for cost reasons without commenting further. that is your bloomberg business flash. let us to get back to one of our top stories. last week was a wild one for global markets with volatility coming back for -- with a vengeance. this is despite ending the we

what prince of bridgewater, the headship as what happens in the market.er levels of volatility is quite welcome for a hedge fund. i don't have huge amounts of sympathy. we talked about this earlier in the programme. higher interest rate, tighter monetary policy, high levels of inflation. all of these things are of inflation. all of these things a re factors of inflation. all of these things are factors that investors are playing with and to mark a new era in the financial side. what this means for the average person on the street is also really important. inflation, what does that mean? it means your shopping basket gets more expensive. it means your mortgage, it becomes more expensive. if you area it becomes more expensive. if you are a safer, higher interest rates are a safer, higher interest rates are good things. volatility is not good for anybody apart from hedge funds is. there is more analysis in the guardian. renaissance is a —— suddenly fragile. what actually have happened in the past week. suddenly fragile. what actually have happened in the pas

showed bridgewater capital has $13 billion in shorts. biggest bears position of more than $1 billion is against total. angela merkel says she is determined to serve another term as a german pencil or -- chancellor rebuffing critics. she urged spd members to back the coalition deal and next month's vote, which will allow her to form a government after the deadlock. south africans rolling african national congress meets later today to transfer the power to jacob zuma. the party must result its problems, including accusations of corruption against zuma. they proposed to replace the president in december and expected to succeed him in the presidency, as well. london city airport is closed after a world war ii bomb was discovered in the river tames. putpolice and royal navy blank around the device. city jets has canceled flights. they advised all passengers not to go to the airport and instead, contact their airline for further information. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countri

today, with the help of the legislature and others, bridgewater hospital is a completely different place, and families who never expected anything to get better finally have hope. [ applause ] we began in the midst of an opioid kricrisis, and with deat overdosed and prescriptions have been growing by double digits for more than a decade. the worst case of negative momentum i have seen. today, with your help and support, we have reduced opioid prescribing by 29% and overdose deaths dropped for the first time in over a decade by 10%. [ applause ] we've made significant progress in many other vital areas that directly influence the quality of life for everyone here in massachusetts. for the first time, we're directing capital grants to vokashzal technical schools. to upgrade equipment and expand popular programs. providing students with real-world skills and experience and employers with job-ready employees. public/private partnerships with colleges, universities, researchers, and the federal government, and materials, advanced manufacturing, robotic and digital health, are incubating the n

ray dalio's bridgewater associates are strengthening his -- against italian banks.osted that to $3 million in 18 firms. this comes as the italian election looms in early march. joining us now to discuss is brandin cooks on an. thank you for being with us. investors are not too happy with the state of politics in italy? brandon: this is a three-pronged .et on bridgewater's part we know they are famous as being a rules-based approach. last year, ray dalio published his memo about the state of populism around the world. he called it "potentially the biggest moving force in global politics and global finance," bigger than finance and global policy -- fiscal policy. we also know italian banks have with stress tests in the past. they announced the latest criteria for stress test yesterday, and said it will be the most severe goodyear he a to date -- criteria to date. dalio: we know that ray has placed a $3 billion, $4 et on assets that are yet to be leverage. what does this represent for bridgewater? brandon: it is not a big part of their portfolio. show some confidence i

the floor bringing in a big fat zero all the what do you make of the world's biggest hedge fund bridgewater and its warning of an even bigger shakeout. this makes people nervous additionally of course these hedge funds are always active usually they're under the radar but in a situation like this they can serve to. worsen the turmoil and exaggerate in this case the downward trend and a technical analyst i spoke to said he doesn't know whether they're right either i don't either for that matter but they usually engage in this way and crease their bets when they see the reason that the market has veered off the property been quiet too long which has been the case now it's been quiet for a very long time and sees over valuations and you do see over valuations for example and a lot of us shares of the frankfurt stock exchange for us i hope you've got good nerves this week will be full of economic data thank you. opec says global demand for oil will grow faster than expected this year the organization of the petroleum exporting countries expects crude sales to surge by over one and a half millio

. >> ray dalio of bridgewater is targeting the dax, betting against the biggest companies, includings he wrong? >> time will tell. i feel very good what i see with my numbers. >> the other issue that is permeating the discussion is infrastructure in the u.s. spend, about the massive flooding the zone with infrastructure spending. what are you looking to see from those proposals? >> to see what the united states will be doing to improve its infrastructure and make it safer. industrial manufacturing. it sounds like a business for siemens. we have 60,000 people working for siemens in the united states. we are in 50 states with 25 manufacturing sites. we are established. we are poised to help build a solid and modern infrastructure in the united states. in a modern power infrastructure. >> a quick follow-up on bridgewater, what is the one thing people need to know about why we need to believe in the sustainability and viability of your company? >> the investors need to make their own choices, it is a free market. i am a strong promoter of sustainability investment in long-term aspects on

four trillion dollars in global losses that equities could be set for an even hostile shakeout bridgewater warns this won't be over in a matter of days it says there's been a lot of complacency building up in markets over a long time after a strong start one comes hang seng index finished the day down zero point two percent in japan markets were closed due to a public holiday but last week the country's benchmark nikkei had its worst performance in two years in germany the dax shed ten percent of the last two weeks but observers here expect a recovery of sorts speaking at a conference in dubai on sunday i.m.f. managing director christine lagarde told investors not to worry about the market fluctuations those market movements were clearly in our view necessary market corrections the markets have function well there is plenty of financing that is still available to finance the economy analysts will be keeping a close eye on u.s. consumer price data on wednesday given that it was fears of faster inflation that triggered the global rout in the first place. let's bring in all the banks and fina

the banking index is up 14%, so some of these bets might be painful for bridgewater, but it looks top-down macro call on the country. ♪ julie: welcome back to "bloomberg best." the sixth round of nafta talks wrapped up this week and a commitment to resume discussions next month, but many points of contention remain. canada's foreign affairs minister, christopher he led, discussed the situation in an interview with michael mckee. >> i think that my view, which is similar to what both of the other said on monday, is we all round,at in the montreal we made some real tangible progress with the anticorruption chapter closing, very significant, and that was good news. and we made some progress on the most difficult issues come at -- difficult issues, in the areas of the unconventional u.s. proposal where we managed to start a real conversation, and that is progress, and that is a good thing. having said that, significant differences remain. we have some hard work to do to bridge those differences. i believe it is absolutely possible. i think a win-win-win outcome can be achieved, but our a

is inarly consolidation search of votes. ,ray dalio's hedge fund bridgewater has boosted its bets againstlian banking sector to $3 billion. what is he betting against? >> mostly attain financials and trigger hishe italian elections in march, although he has been running these bats over the last three months when he wrote he had $1 billion in shorts against italian companies. >> is it time to do this when you look at how the tying banking industry fair this year? >> it seems to be a contrarian bet. the italian index is one of the best performing this year. , sobanking index is up 14% some of his bets might be painful for bridgewater, but it looks to be a top-down macro call on the country. ♪ >> welcome back to "bloomberg best." talksxth round of nafta wrapped up this week and commitment to resume discussions next month, but many points of contention remain. canada's foreign affairs minister discuss the situation in an interview with michael mckee. >> i think that my view, which is similar to what both of the other said on monday, is we all felt that we made some real tangible progress with

the ft carries a warning from the world's biggest hedge fund, bridgewater, who say markets are enteringa decade of ultra loose monetary policy. meanwhile, the guardian financial pages look at how the negative market reaction to the world's economic recovery shows how countries have become too reliant on the largesse of central banks. and finally, also in the guardian, it's official — facebook is for older people. according to a new report, teens and young adults are leaving the social networking site as popularity surges among the over—55s. so let's begin. with me is oliver cornock who's editor—in—chief at the oxford business group. welcome back. we are starting with the telegraph and the story that is engulfing oxfam at the moment it also threatens to engulf the department of international trade. it is one of these terrible sex scandal stories we have heard the like of

the world's biggest hedge fund is bridgewater.the middle of the stock market turmoil of recent weeks, its chief investment officer announced with relish, we don't think this shakeout will be over in a matter of days. we'll have a much bigger shakeout coming. that's all well for him to say. he won't suffer in a shakeout. whatever happens in the real world, the financial elites just get richer and that is not an accident. the financial sector is by far the biggest source of donation to the politicians, that people move in and out of government jobs and their friends in high places make sure they avoid punishment for their crimes, crimes that crush the lives of working americans wall street is tonight's swamp watch. ♪ the currency of the swamp is power and influence. by this measure wall street is welwealthier than most americans realize. one of the most important ways they get what they want from washington is the so-called revolving door. we just talked about it. jay clayton, chairman of the securities and exchange commission was p

so, suddenly bridgewater's tone became a lot more bearish.e weekend bridgewater's co--cia bob prince gave an interview to "the financial times" urging a more cautious tone he said, quote, there had been some complacency built up in the markets over a long thyme so we don't think this shakeout will be over in a matter of days. then this morning ray dalio wrote in a post on linkedin that recent spurts in stimulation, growth and wage numbers signals that the cycle was a bit ahead of where i thought it was ten days ago he adds the ability of central banks to get monetary policy right in this point in the cycle is difficult and that as a result, the odds of a recession in the next 18 to 24 months are rising kelly? >> leslie, stay with us. i wonder if after this he goes, i'm not giving any more media interviews for five years. he's been so out there lately between the book and everything else maybe it's doing more harm than good. >> i don't know he's helping that much. i think it's good to run that full clip of what he said there. i think he was ma

bridgewater associates turned bearish last month and started shorting japan stocks around the same timeskys there is a rising of recession in the next 18-24 months. russia is not expected to sell more than 36.5 million metric overseas.eat -- russia is 36.5ted to sell more than million metric tons of wheat overseas. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . manus: he got up extra early for this morning. let's talk about the prime minister of japan. he nominated governor kuroda to lead the bank of japan for another five-year term. he also appointed 2 deputy governors. it may mean an aggressive move, or not for stimulus. it is likely to stay in place for now. joining us from tokyo is brett. kuroda remains for another five years. good news overall from a policy stance for markets? >> that is right. it is a sign of stability for japan. we should seek monetary stimulus here and japan continue aggressively -- here in japan continue aggressively. there will be a great deal of

quick question, bridgewater. getting more and more information about radel yields positioning.ory that he looking for a domestic play still hold water? to scale of the short seems be getting bigger. dani: it does. only if we could see the underside of his book it would answer a lot of questions. he had that linkedin post where he talked about late stage economies, when you have earnings looking good, economic data coming in well, that is when you get interest-rate drive in. that is when you turn bearish. maybe it is an overall bearish position on europe, but i would have to imagine, and we talked about this, my obsessing over this, the way these shorts are positioned where they are proportional to the index. i think it is possible that this is a bearish play on europe, but it might be more focused. it could be on domestic companies in europe, because these are big international companies he is shorting that would face headwinds should the euro strengthened. -- should the euro strengthened. guy: thank you very much, indeed. derek halpenny is going to stick around. we will talk a

taylor: most of bridgewater's peers are betting european equity will rise. sign of consolidation in the semiconductor business. according to the wall street rostemmy has a market value of $7.6 billion. that is your bloomberg business flash. francine: investors are preparing for jay powell's first appearance at 10:00 a.m. eastern time. joining us now, the senior vice president and chief global strategist. thank you for joining us. it is a pretty packed day. what are you expecting from jay powell? a dovish tone, or can he afford to be little more hawkish? >> he is not janet yellen 2.0. he will be focusing not on the full implementation janet yellen was focused on. i do not expect any huge surprises, but if he talks about communication, prepping the market for potentially more than three or four rate hikes, that could cause a little bit of a shaky market here this week. francine: are you expecting a shaky market and overall, does he have a much more difficult job than janet yellen because we are at a different point in the cycle. >> he is managing a more diffic

coming up later, bridgewater founder ray dalio joins us for an exclusive interview from beijing.hly 9:30 a.m. u.k. time. this is bloomberg.. mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. ♪ markets are mixed before jerome powell's testimony in washington. brussels pushes back. the eu is set to publish a dropped brexit treaty that ignores some markets are mixed before jerome powell's of britat important demands. the sky is the limit. 12.50 pounds per share. how will fox respond? ♪ welcome to "bloomberg surveillance."

bridgewater says there is a 70% chance of a recession by 2020, prior to the next presidential election. s hes the trump administration's massive tax cuts and spending at a time wthn economy is strengthening could backfire. so are there signs that a recession i in sight? joining us, jason ware from aflion financial group. jason, welcome. tyler.nks for being me, >> do you see any signs right now, any tell tales that a recession is on the horizon somewhere, or way over the horizon? >> you know, with all due respect tr. dahlio, who is a much followed voice in the market, 70% odds of a recession are a bit high given the preponderance ofmi eco evidence we are seeing. we have had a long and protracted economic growing with little excess. typically it's the excess that results in the fed of having to overtighten, and then we get an economic downturn fromthere. we are not seeing that in the evidence. what we are seeing is a pretty wellalanced economy. we are seeing a little over 2% economic growth in g terms. as you mentioned, the labor market is doing quite well. probably getting close to full

teddy bridgewater to win the game for france, it seemed.at a moment. what a day. joe wilson, bbc news. that is it for 110w. i'll be back with the latest on bbc 0ne earlier than usual, at 9.10. now on bbc one, it's time for the news where you are. goodnight. for the news where you are. hello. this is bbc news. let's get more now on the story that the comments from the conservative mpjacob rees—mogg, in which he accused civil servants at the treasury of "fiddling the figures" in brexit forecasts. a short time ago, dave penman from the fda union, which represents senior civil servants, spoke to my colleague rebecca jones. mr penman defended the independence of the civil servants. i think we need to deal with the fact that just because jacob rees—mogg says it, doesn't make it so. he has produced no evidence of the accusations. what this is about is that people like jacob rees—mogg cannot understand how anyone can leave their own political allegiances aside and serve the public interest, because he is incapable of doing that. but that's what civ

teddy bridgewater to win the game for france, it seemed. france led by a point.op goal... watch and wait. what a moment. what a day. joe wilson, bbc news. the women's six nations got under way last night with wales narrowly beating scotland while tonight ireland faced a tough opener in toulouse. the french side were relentless, scoring four tries in total — including this from jade le pesque in the first half — her first of two — to give the hosts 211—0 victory and a bonus point. 2017 england begin their title defence tomorrow away to italy. it was an emotional day for manchester united as they commemorated the 60th anniversary of the munich air disaster with a minute's silence. the game was won by united. they beat huddersfield town 2—0 with new signing alexis sanchez scoring the second goal. sanchez‘s old club didn't seem to miss him too much. aaron ramsey scored a first hat trick in this, his tenth year at arsenal as they thrashed everton 5—1 at the emirates. new signings henrik mkhitaryan and club record signing pierre emerick aubameyang both made their debut

we can say statistically that bridgewater was set up -- his blog post would suggest they were not.here are others who were. vonnie: this will raise a lot of questions about market structure and whether regulators should look into whatever event happened yesterday. magnitude ofed and the decline and the sudden bounce back, those weren't human beings. debate does this whole bring up where you should be invested again? for, kin people relax and sleep at night and not worry about cants like this -- or, people relax and sleep at night and not worry about events like this? erik: if you weren't looking at your iphone yesterday, nothing happened. you didn't see that. were you comfortably going to sleep? no. it does make a strong case for patient, long-term investing. todayeople are saying raises questions about whether there regulating division should come in and say these are not orderly, predictable, secure markets for investors. that is definitely an open question. vonnie: that is erik schatzker. let's take a quick look at the markets now. we have indices unchanged right now. the s&p is

the floor bringing in a big fat zero all the what do you make of the world's biggest hedge fund bridgewater and its warning of an even bigger shakeout. this makes people nervous additionally of course these hedge funds are always active usually they're under the radar but in a situation like this they can serve to. worsen the turmoil and exaggerate in this case the downward trend and a technical analyst i spoke to said he doesn't know whether they're right either i don't either for that matter but they usually engage in this way and crease their bets when they see the reason that the market has veered off the property been quiet too long which has been the case now it's been quiet for a very long time and seems over valuations and you do see over valuations for example and a lot of us shares believe out of the frame. stock exchange for us i hope you've got good nerves this week will be economic data thank you. lunar new year celebrations may not be as bright this time. of the government's bad fireworks of the four hundred forty four cities a victory for mentalists but the bands are taking t

hedge fund billionaire rate dalia of bridgewater associates has amassed against the biggest companies requirements for selling stock. a strong economy and rising interest rates. airbus.e companies, nestle posted full-year sales that rose at the slowest pace in more than two decades. revenue was up 2.4%. the food company was aiming for a increase this year. l'oreal could be setting the stage for divestment. we talk to the ceo. >> we indicated last year that we are interested in portfolio adjustment, most notably with small to midsize companies. we did not rule out larger deals by the sweet spot was going to be smaller and midsize. this is exactly how it played out. we did several transactions in the second half of the year. 2018, we have announced one transaction, of a company in south america. the pattern is the same, trending toward nutrition-health, wellness strategy. lighter foods, super foods. welook at the same thing, are not ruling out larger, multibillion transactions. reporter: that is your "bloomberg business flash". francine: i love this story. nestle, one of the biggest com

. >> have bet against some of europe's largest companies has run to $18 billion at bridgewater. >> onethe rationales i have heard around this is that all the conditions are in place to start getting short. it is a countercyclical view. we have growth on all cylinders, so perhaps that is the rationale, and that makes him cents. >> the senate hitting a wall in the search for 60 votes, failing to advance any immigration plan today. >> the motion is not agreed to. >> i think president trump is the key to getting anything's signed. the sweet spot in the senate seems to be as we have seen with daca sixer proposals a combined with border security. failed is thate president trump wanted additional cuts to family-based immigration that democrats were not willing to give here a. we are stock. >> robert mueller and diving an announcement of an indictment. >> the defendants conducted what they called information warfare against the united states. with the stated goal of spreading distrust towards the candidates and the political system in general. >> i was truly expecting mueller to do something l

he is the founder of bridgewater the nature -- nation's largest fund. fast forward to today. it seems to be a change of tune. it's now saying the risks of recession are rising while bridge water said there is probably a much bigger shakeout to come. so what was last week really all about. and if you see the same issues start to line up again. will we see it. you can see the point move yesterday. what you don't see there is the minuses and the pluses. friday was a plus. monday was a minus to the floor show and in the traders of the new york stock exchange. he is the senior economist. we know it probably wasn't just one thing. i will start with john carpino. what did you identify as the culprit for last week's move. you cannot have one weight markets. it went up straight. 25 percent over 14 months. we all enjoyed on the way. we have to be strong enough to take a little bit of panic on the way down. the other thing i looked at was what you just said. there was one real not one real catalyst that caused the market turn. we've had semi- different topics come up. the closing of the

equities in other regions -- bridgewater has $18 billion against some of europe's sevillecompanies, and less than 2 billion. "bloomberg markets" reporter -- not a lot of love for european stocks. love, there iso a short bet, but i want assume to know what is going on in dalio's mind. but i will point to a linkedin post, you know he loves linkedin, saying we are at the late stage of an economic cycle like we might be in europe. central banks grow more hawkish and growth has been picking up. at this point is one stocks to an about-face and do a downturn and he ties that the rising interest rates and growing banks. tfrom central this is conjecture here, but this is the short side we are seeing and we don't know what the long pet looks like. bullishssible he is with the euro. but thisecture here, is a huge position. mark: as we indicated in the introduction, we know not many are betting to that extreme against european stocks. >> we to started just and people are bullish, even more so in the u.s.. using the u.s. as a comparison, the u.s. looks very frothy and some views. quite gotten there,

david: we have to talk about ray and bridgewater.t's puzzled people here because it's not just your bank but the italian banks and expanded to european equities and people are wondering, what's going on because people think european equities is undervalued. what's your theory to what is happening there? frederic: i don't know. i'm pretty positive on europe. we should have two years of growth. the rates will go up progressively but not probably. brutally. and we have a good level of confidence and we have this year to further build the momentum with new political initiative. so i think again that factually there are opportunities on the europe and equity side and depends on one sector to another, one end to the other. but there are opportunities. alix: where might ray dalio be rated? what are the risks? frederic: you should ask him. alix: it's easy to paint a rosie picture in the environment you're in. but what is the weaker point, where might be he with socgen and other ones. is it a political risk? frederic: to be frank, i'm not sur

his bridgewater associates has amassed a 22 billion dollars bet against the biggest companies includingue in european lenders, which will benefit greatly when the ecb starts normalizing policy. >> i think revalue is going to -- ray dalio will lose. we are one of the biggest investors in the italian npl. we see tremendous how in some of these asset classes. daimler is trying to play down a newspaper report that its own engineers questioned the legality of software used to control its diesel powered plants. the company says documents have been released "to harm daimler," and its near 300,000 employees. the firm says it is operating with u.s. authorities and has been asked to conduct an inquiry. emirates nbd is preparing to submit a bid. according to people familiar with the matter, they say emirates is evaluating an offer for the bank, but it could take several months to -- before he decides to sell. that was your bloomberg business flash. let's bring up after saudi arabia and their current approach to oil prices. a little bit of a shift to becoming more hawkish and hardliner. that could

regulatory filings revealing a bet against some of europe's largest companies has run to $18 billion at bridgewater one of the rationales i have heard around this is that all the conditions are in place to start getting short. it is a countercyclical view. raising interest rates, growth on all cylinders, so perhaps that is the rationale, and that makes sense. >> the senate hitting a wall in the search for 60 votes, failing to advance any immigration plan today. >> the motion is not agreed to. >> far from clear what happens next. i think president trump is the key to getting anything signed. he has to support a proposal that can get more than 39 votes in the senate. the sweet spot in the senate seems to be as we have seen with these other proposals, a daca six combined with border security. the reason these failed is that president trump wanted additional cuts to legal, family-based immigration that democrats were not willing to give. we are stuck. robert mueller announcing an indictment. 13 russian nationals and three russian entities accused of interfering in the 2016 election. >> the defendants c

bridgewater has been disclosing short positions.io has turned bearish against all of europe. tim graf is still with us. walk us through this. once you contrast his positions, the story becomes clearer. beginningard in the because it was like there was a huge puzzle and we were trying to figure out what it was. banks is it italian its own separate that. i want to emphasize that this is -- we are doing a little assumption here. when you break down the have these huge companies and the short bets. they are almost exactly proportional to their weight and the europe stoxx 50 index. that would say there is more here than just betting on european companies. one of the main reasons you would want to proportional back holdingndex, you are the index and you are trying to hedge out what you do not want from that index. it would be easier, if you want to short all of europe, why not short the index? it will be strange to individually take the short positions. that it wouldg seem to indicate he is holding the index, maybe it's futures and this h

ahead, lots ofng big names coming up on bloomberg tv, including bridgewater's founder ray dalio speakingnterview from beijing at 4:30 in hong kong. newly sworn in fed chairman jerome powell will present the semiannual monetary policy report on tuesday and face questions about financial stability concerns and what the market is really watching out for. david: survey, right. i'm not sure if i will stay up for that. that is about 11:00 p.m.. will that world look completely different? it will be interesting. we were speaking earlier with j.p. morgan assets. the meeting in march will be important because of the revised forecasts on growth and the economy, so jerome powell has to strike that careful balance between striking a hawkish tone, which a lot of people thinks he should come but not giving aware where the fed takes rates. the march meeting should be a better time to do that. haslinda: we are seeing calm after the route and the markets are comfortable where we are right now. the indications from the fed is that it will not raise rates rapidly this year. we will wait and see. bloomberg m

about this because if you think about who are using risk parity funds, you have behemoths like bridgewater putting that pressure into the market, they are pretty careful about their trading, but if they see correlations starting to change, they will have to start trading into the market and you get issues of liquidity because they hold so many assets. happenedink about what during the taper tantrum when these funds got low to the ground, they had to hit the bond market hard because they were bleeding assets as correlation got out of whack. as inflation spiked and ruined some of this relationship. definitely something to keep an eye on. each firm would have their own opinion whether they can impact the greater market and to what extent, but selling could occur if correlations continue on this rocky relationship. guy: traditional idus, the bond market is a hedge to my portfolio. can i do that anymore? how does it work in this next phase? steen: this is all about math. the problem of risk parity from a mathematical point of view is assuming you have a normal distribution, and you don't -- wha

. >> i think aread today that dalio is buying gold >> bridgewater allegedly.ts are that he bought a good chunk of gold in the 1200s. i like the minors, judge i'm like pete here the minors are down on the year. i like picking those up cheap. gdx, i'll point out, has traded 33 million shares today. normal is 38 million on a full day. so there's a big surge today >> we'll step away for two minutes. coming up, the trades on avis, hertz, baidu and fossil. we want to mention a cnbc exclusive interview tomorrow 9:00 a.m that man's stock has just absolutely killed it boeing ceo is going to be on "squawk on the street. it's a cnbc exclusive interview. do not miss it well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel

dalio's bridgewater associates have built up short positions, 6 billion euros.uite a et. peter: it is a bet on what? gdpa did 700 billion new last year. let's get the ratio right. 700 billion of new gdp and a custom 2.7 trillion -- and it -- 3.7 trillion of new debt. is not ay, the dax good index anyway. you could see what it is -- white itat's why is a logical bet. manus: do you think that growth will slow? peter: i do. that 60 -- is at 60. you have reached it, you are done. i don't believe a word of it. i believe we are at the end of the cycle. it is one year or two years away, at the very best when you're absolutely done. that is why they are saying it , -- good structure that good is structured bet if that is your position. we did not manage to get to the point about warren buffett. peter: we know who the better investor is. ibm has not been a good stock. [laughter] manus: thank you very much, at embarqood, cio embark group. ♪ >> good morning, welcome to bloomberg markets. i am guy johnson alongside matt miller in berlin. it is 30 minutes until the start of

scarlet: ray dalio from bridgewater associates speaks extensively with bloomberg about the economic situation and what he sees coming out from the fed. we have highlights from that, coming up next. this is bloomberg. ♪ scarlet: what you miss? ray dalio says google central banks need to figure out how to balance growth with inflation in the coming years. speaking is visibly to tom mackenzie in beijing, dalio pointed to the pickup of growth in europe even as his hedge fund has amassed more than $18 billion in bets against stocks in the region. ray dalio did not comment on the short position but did outline his concerns about monetary policy. ray: there is today and what it used to be. this is the debate about what the best process is. , the italians,ue so on. and now, look at it. we have been through the worst debt crisis. we have had a beautiful deleveraging. and we are now in a situation where growth is improving. of course it can always be better. you can have more structural reforms. situation where growth is positive, the debt crises are not as difficult as they were. and were not having a

largely what many speculated, which was that short volatility, risk parody trade coming out of bridgewaterother huge hedge funds, selling lot of stock stocks to rebalance and not a shift in market thinking because interest rates ticked hire >> what has has beened is that the velocity of the move in ten year has slowed down i agree. i would add there's tremendous amount of surprise i am very surprised about the ability of the market to come back as strongly as the it is. when you have a market that falls over 10% as quickly as it does, we've never seen in the the history, the short duration type of recovery that we're witnessing since 1945 of all the corrections we've had greater than 10%, this is the fastest. >> the average correction took 64 trading days. this one took nine so manager -- >> it's caught everyone off guard. >> something internally in the market went screwy zwl it was the short volatility strategy >> for sure. >> i swrus want to, something didn't go screwy long before there were machines trading in the stock market, we had market corrections long before risk parody, so you d

bridgewater's that it will be more than $1 billion as the largest short holding in europe.guarantee is no longer. they will impose a one-year limit on most returns. they cited abuse and fraud, which has doubled in the past five years totaling 250 million dollars. that is your business flash update. joe: what you need to know for next week. this is bloomberg. ♪ scarlet: what'd you miss? an up-and-down week that ended up for the day. president trump announces his infrastructure plan monday. joe: wednesday, so much interest in cpi. julia: wednesday, the numbers for global gdp are out. mark: i am mark crumpton and new york. you are watching "bloomberg technology." president trump at the white house today praised rob porter, the former aide who resigned in the wake of domestic abuse allegations. pres. trump: we certainly wish him well. obviously a tough time for him. he did a very good job when he was in the white house. and we hope he has a wonderful career, and hopefully he will have a great career ahead of him. mark: the president says he was surprised by the allegations but

bridgewater is calling the most weeks -- recent market drop minor corrections.s crossed over to several overseas markets and tenure treasuries. on a link than post, it went on to say that there is a lot of cash on the side and what comes next is most important. warren buffett's railroad is getting off the blockchain wagon , joining the blockchain transport alliance, saying freight and logistics companies including ups and federal express. digital technology for vehicle maintenance to focht up action t. porsche meanie mission capable of traveling 400 to 600 miles on a single charge is expected in 2019. the starting price, around $75,000, similar to the model s of tesla. baking is over the last hour, lululemon ceo has that down effectively -- breaking news over the last hour. the search continues for a successor, and lululemon says to holdect employees himself to a standard and it here the guidance. and that is your business flash update. back to the market selloff here that we saw today, extending the decline from the end of last week. let's bring in luke powell,

his bridgewater associates has a massive $22 billion bet against europe's biggest companies. banks. there is tremendous value in european lenders which will benefit greatly when the ecb starts normalizing policy. >> i think he is going to lose on this and the reason is that we are one of the largest investors in the italian npl. 50% market share. we see tremendous value in some of these asset classes. yvonne: british retail billionaire philip denies he is planning to sell his fashion empire. -- it was in talks with china. the company agreed to buy another company. they bought a controlling stake in the shoemaker. ramy: daimler is trying to play down the newspaper report that says its own engine questions the legality of software used to control its diesel powered plants. the build haveby been released to "harm dialer and it's nearly 300,000 employees." .aimler says it is cooperating yvonne: that is almost it from us on "daybreak asia." haidi, you are watching the singapore budget, and the reaction to all of this. .aidi: really dissecting we had husband a talking about the ram