, mid-caps large caps exist in the united states we can say the big caps have the international component. the international markets aren't as good. either small caps are left for dead because people are buying all the same etfs, or there is an economic story we are missing here. >> but i think that's it while the kme economy is not going in recession by the way a lot of people missed that one and said that's where we were going. we are not growing at 3% we're struggle to grow at 2% and maybe subthat. i think the small caps are ultimately emblem mattic of the real economy the small business has a lot of headwinds look at labor force, taxation, real estate, commercial real estate the small business owner right now is in a very difficult place. and i think. >> it's i think it's a prd where you started out where the etf is going. where the money is going when people invest in the marketplace they shoot for the qs, the spiders. if that dissipated they got out of the qs and out the spyders and back what they are in. >> are they whiching them because of the economic story or because everybody e

we just heard taylor talking about small-cap tech relative to large-cap tech. today, the faint -- the faang index lapping the general indices. for someep looking kind of rotation. tech to cardboard boxes or something. could we be wrong? could it keep driving and lapping everything? >> it could. but i think the underlying earnings growth will be more challenged. you never want to buy tech because it is cheap. you want to buy it because it is expensive and growing fast. if you look at last year, look at apple for example with these extraordinary gains. it is so hard for big companies to be able to expand their earnings picture as much as some of those stock prices would justify. cyclically gets stronger, i think small caps will outperform large caps for at least the first quarter to half of the year. scarlet: what happened to the rotation into small caps? sarah: we saw it die down a little bit it picked up when we saw the very large rotation take hold. we saw a rotation from growth to value, from domestic to international. we have seen rotation from defenses to c

ultimately what caps the rally is if you don't get cap ex expansion which is what i'm looking for in fourth quarter earnings call how is cap ex going. >> see, i look at the first quarter as a gimme, a throwaway. i think you've got to see ramp up in second half. to me the runway is fine for the first quarter. after the first quarter you get the election, have to start seeing cap ex. >> here is what tony dwyer is saying hold off adding exposure into recent strength before we had news out of the middle east and pullback to end last week. we have the market potential hit an air pocket as an unexpected event a risk to fundamental outlook. kind of what we're talking about. >> ie volatility have a little bit of dry powder, okay you know i sold some roku the other day. i did by northrop grumman. i have like 7% cash. if there's a little pullback on what unfortunately is inevitable that there's fog to be a tax, that's where i'll put it to work i hate saying that but there are going to be attacks. >> shannon. >> i think if we go back and look at what we saw when there was escalation of north ko

top, the small cap etf. on bottom, small cap relative to the s&p 500.t decade, small has been underperforming within this channel. frank was pointing out the areas of bottoming in 2012, 24 team, buyinghat represented a opportunity on small caps. he is pointing out the buying opportunity that seems to have appeared at the end of 2019. frank thinks we will see a stockmarket rally in 2020. he thinks small cap is the more attractive place to put money. another chart that has stood out comes to us from bank of america merrill lynch. the small cap relative -- excuse me,nd long bond relative to small cap. he is making the point we could be in an area where the long bond is going to outperform small cap. if that occurred, it would probably be risk off. we see that in the early 1990's, early 2000s, then the financial crisis where bonds were outperforming small caps. off the risk on period. it appears we have put in a bottom there as well. it will be interesting to see whether they are correct. two powerful charts to keep in mind. this is a long-term one. oppenhe

divergenceferent going on in the earnings season between big caps and small caps. romaine: our thanks to everyone on the marketing. vincent andhose is david sowerby who joined us from detroit. today.k at the market you look at the valuation and where we are, is this still a market? if you are not exposed to some of these names, is this the time to get in? david: you will always wait for the dip. the average inter-year dip is around 13.5%. you can wait an awful long time time that drop. you talked about small caps stocks. one of the catalysts is on the margin, earnings are improving. gdp is improving. the relative valuations in small-cap look compelling. is to lookting area at the bloomberg spinoff index. so many spinoff stocks are more compelling today. i think it is a great spinoff name you want to look at in the small-cap leaning value stocks. scarlet: so look at small caps and look at spinoffs. when you say the average client would be 13%, what would cause that pullback in equity market today? what event on the horizon could do that? david: most of the time, it

versus large cap better value in small. going to outperform large cap. i'm not necessarily sure you agree with that. you tell me if i'm right or wrong. >> i would say that it absolutely could happen. i just wouldn't frame it in a market cap size because what it boils down to is a sector bed. and i'm sure you'll agree with that if you think about the trend in financial stocks going into the end of the year, very powerful and it's not a coincidence that finally the russell started to catch up with the qs and the s&p 500 and the dow. it's very heavily tilted towards financials i think the second most popular sector among the russell 2000 is industrials. i could be wrong but you're betting on reflation of the economy the one caveat, credit quality among small caps is adding wide disparity to credit quality in the s&p 500. now, it always, there always is some disparity but now it's wider than it has been in a long time that speaks to the industry break down to some extent and also just the fact of life it's extraordinarily easy

we are underweight small caps. we like large caps over small caps. one way that could turn that tide, if u.s. growth accelerates and does better than the market expects relative to the international market, that is one way small caps could outperform. week we get netflix earnings and that is an example of a company that is both high tech and extraordinarily stretched balance sheet. it falls into two buckets. will that number and the reaction to it give us a hint about the market's appetite or willingness to fund some of the dicey companies out there? into later move stages of the cycle, people seek quality. companies that have weaker balance sheets and things like that, in the end, are probably going to trail. if we are in the seventh-inning and there's a couple outs, more baseball to be played, i think what the market is going to move toward are the higher-quality companies they can count on. scarlet: thank you so much. scott and katie. that does it for the closing bell. "what'd you miss?" is up next where we will bully looking at deutsche bank. ♪ r

more be longer-term position is to look at areas that have been unloved, small-cap and mid-cap stocks we think have very compelling valuation and if anything can be pulled along with some of the larger cap stocks. arehink the downside risks marginally less because of that valuation buffer we might have built-in. >> be set has come out with numbers as well, first quarter revenue beating analyst estimates. is sixrounded up it point billion dollars. net revenue beating estimates and the eps beating estimates as well. right now, good enough for a little changed or slightly higher. 9% versuster volume, the consensus estimate. >> this has tripled in the last year. you would not think of it as a tech stock because it has been around forever. >> they would argue that they are tech. >> it has been a consistent business model. i want to go to katie here because one thing we did not talk about is the ego data -- eco-data. did we see any reaction? maybe two weeks ago you would have, but the coronavirus dominated. there was some mixed data on the consumer, the overall the u.s. economy is still in

the saracens salary cap scandal, is there battle against relegation now futile 7 englands cricketer‘s south africa we hear from johanna konta on why she will play at the australian open but won't be playing for great britain in the fed cup. also coming up in the programme: can the roses get their revenge? every match against new zealand coming up this weekend. conor mcgregor is back after 15 months away from the octagon. hello and welcome to sportsday. evening, last year, after an eight—month investigation, premiership rugby found that saracens had broken the salary cap regulations over three seasons, a period in which they twice became premiership and european champions. they were fined £5 million and docked 35 points in november. the chairman and owner nigel wray accepted the punishment, eventually, and insisted that they were complying strictly with the regulations this season, but he stood down a few weeks ago and there is pressure on the club to prove that they haven't broken the cap again. it's understood that they will be relegated. we thought we had that hammer blow last novem

it's about whether saracens, we know they preached the salary cap the past three seasons.shed accordingly, but will they be under the salary cap this season and the signs are there struggling to do that and what the clubs don't want is another situation where saracens say stay up this caesar because there's a good site they could wind with a 35 point reduction. and then they start with the breach and start they start with the breach and start the next season on minus points again and in the process relegate another club. so, the clubs have basically made it clear that if saracens cannot comply and do not comply with the revocations of the season, and that they are facing relegation to the chamberjib and thatis relegation to the chamberjib and that is something saracens have to deal with very quickly and if they cannot get under the salary which at the moment was typical, the repercussions could be pretty drastic. i was going to ask about that because there are also is of legal contracts with these players. how difficult would be to make changes midseason? what is happening

small cap leader 5.3% entrepreneurial small caps are up >> i saw that.t this year, they are starting to faulter again. what is going on what does the market need to see to get them to really start that trend higher >> again, we are not seeing it in the entrepreneurial space they are up about 9% for u.s., almost 5% for u.s. small caps. there are certain pockets that haven't caught up the last three years. companies are up 50, 60, 70% the u.s. are stillcoming back. many companies are still 20% below the highs. revenues and profits are there >> is it geographically focused or more industry focused banks, biotech >> we are sitting across the areas. we are seeing swedish tech, consumer discretionary, we are seeing china china has been strong year-to-date coming out of the gate, china has been the strongest country we are seeing global growth, valuation plays. it is a duel market. >> thank you for those market thoughts that does it for "worldwide exchange" this morning "squawk box" begins right now. >>> good morning, the dow surging above 29,000 up triple digi

grenadiers lost their bearskin caps and had to wear cap hats with front peaks and visors.r headgear. on august 14th, 1776, two days after the brigade arrived at sandy hook, matthew informed his battalion companies that they would and i quote "cut their hats round immediately and sew the lace on again, one flap to stand up and the other two to be down." in other words, they converted their cocked hats, which left their faces exposed to the sun, into round hats. all guardsmen cut their coats short to light infantry length. the king george iii topographical collection of the british library houses a watercolor by lieutenant and captain bellew of the grenadier company that shows the battalion company private standing sentinel at the guard camp on staten island in 1777. as we can see, he sports a broad brimmed hat and shortened coat. here are re-enactors in a reconstruction of that uniform. something similar had happened among redcoats already in the war zone. a watercolor view of the bunker hill area executed in the summer of 1775 by captain thomas davies of the royal artiller

his reputation and the reputation of the club has been battered by the salary cap scandal. have seen wray not travel to away games because there are suggestions he won't be welcomed by opposition boardrooms and funds. this has taken its toll and even though in statement wray says twe nty20 though in statement wray says twenty20 is time to move on with a fresh start, he decided to step down as chairman so soon after one of the biggest scandals in club history. is this really a pr effort to deflect attention from the club? ever since the start of november when this came out, saracens have been trying to move on. they said they were considering a review of they were considering a review of the findings and then they decided not to do that though they copped the punishment and find —— and accepted it. the exeter director of by accepted it. the exeter director of rugby was again critical of saracens the other day and the way they had spoken up against saracens and betrayed them as the bad guys. i wonder if this is wray‘s way of saying, i don't want the players and staff being ta

but in terms of purely market cap, tesla is almost worth gm and ford combined. finally, the latest to come out with a new note today raising its price target for tesla, this target $556. >> and those numbers on market cap are staggering, but i think that you know this and i know this and our audience probably knows this, but bears repeating, the reason that exists is even though gm sales are, what, six or seven times that of tesla, so is their debt load the debt ways down the market cap. so not a pure reflection of tesla's value. you have to subtract all the debt that ford and gm has. >> and if you look at the enterprise value, ford is more valuable than gm and tesla all the way down at like 88 billion, 89 billion but that has been a point all day. nonetheless, i think that we're getting to the point where $500 a share is not only a possibility, but could happen relatively soon. and remember, remember when elon musk's contract was redone and his compensation package people said, you know, if he ever gets to a market cap of $100 billion i can't remember what his

when you think about caps, the large caps did very well i mentioned apple, facebook, all that so there, there could be value found there as well. >> are we going to see the impact of the collapse of the softbank vision thesis maybe beyond just the starters they're invested in. >> great question. i'll take it from softbank and say what we're hearing, yes, absolutely we think so we think what's happening, we tell every one of our companies we talk to, meet with their boards, is that you need to be able to show a path to profitability or at least strong underlying economics those questions have weighed on uber, lyft, obviously questions around those things. so every company now from the c suite to the board of directors needs to have that path to profitability and using those economics if you're not already profitable in 2020, we should see some of these ipos come out that are profitable you'll see that mix as well. >> exactly my next question. what does that mean for the ipo pipeline >> the ipo pipeline, if you look at the 2019 class, right, the average return of all tech ipos was some

the league below doesn't have a salary cap, but it is not clear if those players that were attractedill stay and play for their club in the lower tier. well, on the subject of what the saracens players do now, our rugby union correspondent chrisjones told me earlier that they'd be weighing up a few options, but none of them seem that appealing. that's the million—dollar question because can you really see 0wen farrell, marrow to jake, the vilna polar brothers knocking about at doncaster and bedford 7 0n polar brothers knocking about at doncaster and bedford? 0n the other hand, saracens have been so loyal to saracens. they have this band of brothers mentality, but surely, surely that has to be seriously stretched and challenged, that kind of spirit, given what has gone on. how badly do the players feel let down by those above them who told them back in november there is nothing really to see here. the way saracens met the initial punishment with indignation rather than contrition just looks so ill thought out at the moment. i'm sure agents are working overtime and other clubs are work

i think small caps and mid caps are coming back again. the consumer is going to win from this environment of lower rates. look at the way housing is trading. lennar, pute, all trading well i want exposure to that consumer, whether it is shi boat lay. >> larry mcdonald is pointing out for us on twitter the xlp is higher on the day. >> i think jim did a great job this morning talking about consumer staples clorox, yes, that works. but there is more to it. how about coca-cola? how about pepsi? i got into monster beverage. in the consumers staples space that works walmart, in the consumer staples space, i got out of that i am looking to get back into that again. >> bonds at 1.6% i don't see that going down. you get past the virus, the bond proxies are going to perform. >> were bonds falling before the coronavirus? >> they were. >> yes, they were. but that dip was because the bonds have been oversold yields had gone pretty high. i think most of the yield decline is because of the coronavirus and the implication -- which is true it is happening

are shrinking and they have to cut back on cap x or labor we don't know.hey've not done that yet. that would be the biggest switch if we saw small to midcap companies start to improve their earnings picture, that would be something that would get us structurally more bullish. >> thanks for coming in. >> you bet thanks for having me. >> appreciate the debate as always >>> here is what's coming up on the halftime report. >> another bullish tech call straight ahead number one apple analyst toni sacconaghi joins us as he ups his price on the stock plus, ten growth stocks that still look attractive right now. halftime report with scott wapner and the traders is back in two minutes >>> welcome back, everybody. i'm sue herera israeli prime minister benjamin netanyahu says president donald trump should be congratulated in connection with last thursday's attack that killed iran's top commander. he classified qassem soleimani as a dangerous terrorist at an event in jerusalem. >>> the ntsb is monitoring developments surrounding the boeing 737 crash in tehran it crash

market cap is now bigger than gm and ford combined.around 496, which is the fibonacci level. or 525. level is 500 alix: i would not of expected that six months ago. cole's coming out with earnings guidance. they did say it would be at the low end. holiday sales do not live up. bill: stocks down 9% in the premarket. it is in a trading range dating back to may. it does break back at 35. right now, 43 to 45 is your number. alix: let's rounded out with bed, bath & beyond. yesterday the stock was halted. it did not look good for the company. they are not being able to deliver their quarterly earnings. bill: stocks down 11% after last night. or support zone around 14 15. 14 is the bottom of this cap. below that you are looking at 1380. 14 or 15 you might have some support. alix: the have and the have-nots, the nots dominating our conversation. that wraps it up for me. open," amy wuthe silverman with rbc capital markets. within the market, it is about tech outperforming. nasdaq futures are the upper former. european technology stocks hitting

it's their punishment for what premiership rugby call persistent salary cap breaches.gh the details, and rhia — this is enormous for english rugby? this has been described as the most this has been described as the most remarkable scandal the domestic game has ever seen. in the past five yea rs, has ever seen. in the past five years, saracens have dominated domestically and in europe. for a premiership trophies and three champions cups and now they are down to the championship. think manchester united being relegated at their height under sir alex ferguson, that is how big it is. evenif ferguson, that is how big it is. even if saracens when the cup this season, it is still an exit for them in europe. well, today eddiejones said his 6—nation england squad and seven saracens player is a feature in it. -- seven saracens player is a feature in it. —— set his squad. seven saracens player is a feature in it. -- set his squad. it is a difficult time. they are good players. they know how to prepare well for games. they know where to put issues that are not pertinent at that pa

it's big-cap technology stocks >> apple a good part of the reason, moiismt the secondmost important, and, of course, a suite of semiconnect or stocks like nvidia. tame, re that mean reversion trade? center stocks rallied, why they were greatly beaten up. that's not been changing oil stocks are resuming their downward trend if you don't get fundamentals behind it, the price will come down guys, back to you. >> bob, thank so much for that let's focus to the banks, there's been a absolute of notes ahead of next week my main takeaway is the where. they're not quite as positive as they may seem on the surface but the former seeing only 16% up side. the latter just 10p% bar calculation upgraded, but did down yay wells fargo the most significant becoming happen rfrgts haw upgraded. >> that price target as lower, though, at 260 as rates have risen, outlook for the sector is now not bad. that is, as opposed to outright bullish. it's possible that net income year over year could be flat and from late august, the kpw index has soared up some 25% some of the titles of these notes suggested where

and you are looking at nifty mid-caps. >> absolutely.t we have seen as far as this morning, a little bit of dampen sentiment when it comes to benchmark indices. however, they have had a stellar run through the course of the year. going up as much as 14%. what has happened is the mid-cap index, the rest of these smaller names, that index has not moved up by more than 1%. which is why the next chart that should come up for you on your screen is very interesting. it is starting to see just a little bit of gains coming in. it has broken out of its worst technical trendline, which has been falling off. move andw there is up the real question is, should it sustain the gains, can we expect the mid-caps to outperform the benchmarks? that is the big question everyone is asking. there are a lot of hopes pinned on the relatively small names to do better from here on. nejra: thank you so much. anne-marie, yesterday we talked about lingering mideast tensions propping up oil prices. 24 hours later it is not just tension, it is outright fear with tensi

and shane warne‘s baggy green cap raises more than $500,000 at auction for the bushfires appeal.lo and welcome along to the programme. we'll start with football, as atletico madrid have beaten the reigning champions barcelona 3—2 to reach the final of the re—vamped spanish super cup, which is being played in saudi arabia. after a goalless first—half, koker put atletico madrid in front one minute after the re—start. barca replied with two goals in quick succession from lionel messi and antoin griezman, but that all changed in the last eight minutes. alvero morata equalised for atletico before angel correa got the winner. 3—2 the final score. they will now play neighbours real madrid in sunday's final. in italy, torino are the first team through to the quarter—finals of the coppa italia. they beat genoa on penalties following a 1—1 draw after extra—time. alex berenguer scored the crucial spot—kick as torino won the shootout 5—3. staying with football, and japanese forward yuya kubo has joined mls side fc cincinnati. he becomes the first designated player from japan to play in major

but where is the cap ex? the inventories might have been building because of double ordering because of the trade war. i take your point coming into an election year, a lot of uncertainty going out and building huge investment projects i think the one thing, again, just about the dollar is anytime the u.s. federal reserve has done q.e., the dollar has always weak end >> sean, in terms of where you perhaps could be wrong, i'm looking through your notes, your 2020 outlook, you are modestly bullish on every single country. >> we try to keep things reasonably equal. >> you're not bearish on any country? >> not -- we think -- >> every equity market >> the irony is a weaker $is incredibly reflationary for emerging markets and europe. as i said, most of the central banks in the g-7 have real interest rates negative, generally a great backdrop for equity markets whether they wentz positive it was a disaster i think we may be in a regime shift where interest rates remain negative for a lot longer now. >> do emerging m

it's doubled it's market cap over the span of 20 years.then, however, it traded at about 60 times edges right now it's roughly 30 times earnings, so it's essential double the market cap, four times the profitability today, and therefore two times the price earnings multiple. you can see the premium for the overall market is not what it was then 30 times earns for a super mega-cap company is arguably pretty aggressive, but it's really the ohm span of time that we can point to, says this looks sane and normal relative to that, about you this class of stocks have very form, dplent balance sheets, so that's where the trillion dollars comes from. it's nowhere near as nutty as $600 built onwas that said, i wonder what the comparison of just simply top flying growth rates -- it's bush but back then it could have been higher, no >> i think it was around a 20% earnings grower, so clearly rapid growth, but on the other hand in the kind of tech downfurther of 2001, 2, 3, it did suffer microsoft's fundamentals did suffer and there was a lot of premium

the caps are stuff of australian sporting legend and it's expected to fetch an awful lot of money.captain michael vaughan made a bid of $25,0000, but the current highest bid is just over $315,000. that's just over £165,000. remarkable. some news from tottenham this evening. they say they have found no evidence to support allegations of racism towards chelsea's antonio rudiger. play was stopped after the defender said he had monkey noises. spurs responded by launching a full investigation, alongside the police. the club has said that the metropolitan police have now exhausted all avenues of investigation. italian football has been plagued by racism and this weekend brescia stiker mario balotelli became the latest player to receive abuse during his sides defeat to lazio. balotelli said on social media — they should be ashamed of themselves. earlier, i asked european football writer & broadcaster nicky bandini what needs to happen to put an end to it. a big part of the issue is culture and it does speak to issues that italy has with racism outside the realm of that bill and when you l

from there, the nifty small-cap index made a bounce back.ty small-cap index makes a bit of about, ash a bit of a bounce -- makes a bit of a bounce. but it starts contracting, then that would be painful. otherwise, there is a case for the small caps to do well. tracy: thank you so much for that. to hong kong, and china has with noperson experience in hong kong as the top official in the city, signaling their intention to reinstate law and order after seven months of protests. he will take over as the liaison . he tells reporters how he plans to calm the unrest. >> we have confidence that the constitution and the basic lot will be fully enacted in hong kong. that will maintain the one partyy, two systems. our china correspondent tom mackenzie joins us from beijing. walk us through the significance of this move. reporter: it is significant, but it is not unexpected. that has been speculation the former head of chinese affairs, the head of the liaison office in hong kong, would be pushed out of his place. it is not a major surprise, but it is in

that's a lot of market cap right there. joining us now is ubs bank analyst saul martinez.ead of this big week we all know anybody who paid attention watched that big move up in the bank stocks over the last quarter in particular of the year out performing the s&p as we are in this year, how important are these earnings to justify the valuations that banks ascended to only over the last few months? >> well, thanks for having me on look, i think the quarter, itself, is important it's really about the outlook and whether the outlook can really justify what have been pretty material moves for the largest banks. our downgrades last week of jpmorgan and bank of america to neutral weren't necessarily reflective of a more negative view, fundamental view of each of the stocks. it's really that we just feel like they are pricing in a heck of a lot and that the bar has been raised quite a bit. for us you really would need to see material profitability expansion for both banks to be able to justify the kind of upside you would need to justify a buy rating so for the quarter, itself, l

the largest market cap. >> why is that bad, bill why is that wrong? >> because there's only a few things that are guaranteed in the investment business, brian, and the number one thing that's guaranteed is things will change in all of our economics classes, we learn that if something is extremely profitable from a microor macro standpoint, people will keep coming in and providing new competition to that and marginal profit gets driven to zero in the stock market, the thing that's been the most profitable has been buying revenue growth stories in an era where revenue growth is hard to come by. so our argument is this is the antithesis of 1981 it's exactly the opposite of 1981 because 4.3% of the index is in energy and back then it was 29%. so think about what that means for technology if you want to make above average returns over the next ten years >> yeah, james, what do you think? are you worried about it >> i mean, look, there's nothing magical about the trillion dollar valuations. it's just the fact that the addressable markets are larger than the

will they put that money to work in cap ex? the shares haven't done figure oil is the story oil may well be on the move no a while. does that mean the prospects are any better >> chevron is a blue chip company, great balance sheet, permian assets, so they have the better growth. i own it, it's a defensive, though, kind of energy play. i have a barbell approach to energy i have some higher beta names, and then i also have chevron i don't really floe, on a day like today will you get your head handed to you because the oil praises are down and the stocks are getting hit this is definitely on the quality side. >> it's all about the capital allocation story i think that's what he was messaging today. it's about the 3.95 different yield. if you're going to own this stock, you're basically owning this stock, because it's a replica of almost utility. the sensitivities takes you to high beta energy plays, a lot of the shale producers domestically that's where you're going to go. the large diversified names, they really don't have the s

russell has 46 caps for scotland.gised for the "ill—considered approach" to salary cap compliance, which led to saracens' relegation. wray said he took "full responsibility" for saracens being described as reckless by the panel. but said he didn't deliberately breach the cap. he made reference to property investments and image rights. premiership rugby announced saracens would be relegated at the end of the season. it comes after they were docked 35 points and fined 5.3 million pounds for breaching salary cap regulations. to cricket — as england captainjoe root has dismissed criticism from kevin pietersen about the way pace bowlerjofra archer is treated within the camp. this comes ahead of their final test against south africa, which starts tomorrow. the former england batsman, appeared to suggest that archer had been the victim of leaks in the squad, which reminded him of his own treatment in international set—up. there have been a number of learnings for him so far in this tour. we are keen on making sure we try to

arrangements, but i think what he has no knowledge as he should have disclosed those to the salary—capperhaps we would not be in this situation if he had those conversations with the very man who sort of is in charge of this issue. although i think he would still argue that these were investments, i think he's excepted now that the panel thought these were salaries and should have disclosed these arrangements. there were still a few questions lingering over the arrangement between saracens and premiership rugby. are we getting toward the end of this matter or is there still more to come? today has been a huge step in terms of improving the clarity runs this judgement. what is important to note is this is just to do with the novemberjudgement. this is this is just to do with the november judgement. this is is this is just to do with the novemberjudgement. this is how we reached the 35 point deduction and that big fine. he does not say anything about how they got relegated and so although this is a welcome development and comes off the back of immense pressure on firmer ship rugby and sa

it days like this that she appear cap to try something a little bit different.ptain. as much as he can with regard to injury, that sort of stuff, his knee and if you niggles, perhaps. we can only speculate here in the press or the media, if you like, but one thing you know about ben stokes. he will bowl as much as he can. if he can bowl the amount of over say little lake him to. who was your money on shallow definitely england. —— who is your money on? definitely england. we've had eight results in the premier league. steve bruce... the newcastle and chelsea, this has been a season defined so far by differing degrees of inconsistency. newcastle on much of inconsistency. newcastle on much of their ups of inconsistency. newcastle on much of theirups and of inconsistency. newcastle on much of their ups and downs to injuries. ten minutes into the lesson they wa nted ten minutes into the lesson they wanted happen. the latest of the injuries. with steve bruce nero was for others to stand up. the crossbar providing the insult to go with that injury. the second half, ne

niftys a chart of the small-cap. seeing the current like which is similar to what we saw in 2008. most think this means the small-cap well rally. the question i have is what if it is not the small caps that rally? that would start a lot of popular sentiment so people have to be wary of that. back to you. manus: thank you very much. let us take it to annmarie hordern. there is a constriction in the market. what is the spread telling us? rie: the spread is widening especially when you look at the march and december contrast. the premium for the price of oil about six dollars more per barrel. mcnally told you that he somethe price go higher, three dollars-$10. it all comes down to geopolitical risk. not a single barrel has been taken off of the market but the risk is there. over the weekend, the state department says there is a heightened risk of around u.s. military bases. the market is worried and that is what you are seeing this morning. nejra: thank you to juliette saly and annmarie hordern. let us get to the first

like japan, korea, there cap is around 50%. china do similar things? of course this has to go through a quite long process in our decision-making system, but in principle that's possible. >> how quickly? >> that depends on how many companies are hit. right now we only have about two or three companies that hit that limit. but we have 3800 companies listed. we will see. it is a good thing about china. our decision-making is responsive to the demands, requirements, needs. we always take their needs into account. scarlet: that was the vice chairman of china's security regulatory commission. don't miss the reports after the bell tomorrow. joe: i will be watching jobless claims, out at 8:30 a.m. eastern. scarlet: that does it for "what'd you miss?" "bloomberg technology" is up next in the u.s. ♪ riggs in fortaylor emily chang and this is "bloomberg technology." the united nations links saudi crown prince mohammed bin salman to the 2018 hacking of jeff bezos's phone. we will have details and calls for an investigation. plus, smaller

sayave heard commentators that that cap could be reduced.o indication from the government that that is something that they want to do. on the contrary, we understand that they want to keep a diverse supply chain in the u.k. and are looking to increase the number of competitors, not decrease the number of competitors. manus: what does that include -- about u.s.hat mean players in this market, on your margins and your revenue? what do you earn in the u.k. at the moment? what pressure will come to bear with increased competition? jeremy: the u.k. market represents about 4% of our total turnover, probably slightly less. it reputational he has more impact than that. view,n economic point of we don't really see a huge change. share is, 35% market bigger than tesco has in the u.k.. satisfied with a 35% market penetration for the u.k.. we are not really expecting it to have any significant impact on our business. but we do welcome the decision. we welcome the approach the u.k. has taken to including us in the 5g network here in the u.k.. have been c

saracens are facing relegation from the premiership if they are found to have breached the salary capillion fine in november, having broken the cap for the past three seasons. however, there is widespread belief they will once more struggle to get under the £7 million limit this season. here's our rugby union correspondent chris jones. the full extent of saracen breaches over the past few seasons is starting to emerge, because more and more directors and chief executives are seeing this confidential or, 103 or 104 page report that is locked away in premiership rugby headquarters and it details the fact that the breach, last season especially, is quite significant. and if saracens were suddenly to get rid of five players now, they would have to pay those players compensation and that would count towards the salary cap. so it's easier said than done. ed griffiths, the chief executive, has come out and said they might have to trim the squad. but as of the time of speaking no players have yet left saracens and it has been seven months of this salary season so far. so there are loads and l

the recent rally has been led by the mega caps. the small caps have been underperforming.he put-call ratio has been dropping. does that show that sentiment has got overextended? most pessimistic in six months. in a lot of different indicators to look at and also asking the question again that we were asking yesterday when we heard from howard marks whether this is simply a liquidity driven rally or one simply based on fundamentals. manus: we showed that chart of the fed balance sheet and the s&p 500. irked, provoked. the yuan has broken a trade trend. what you have seen is a little bit of a rally in the yuan. we have a nice eight day chart which shows that first turnaround in a number of sessions. you cannot over read the strength of the yuan as being some big global picture. we don't have it, so let's just move along and talk about the s&p 500. not a problem. the s&p 500 irked a little bit. the huawei technology story. the role back in tariffs, what do you need to deliver an upside? inventories in the oil market were higher than the market expected. nejra: in terms of the

and even small caps still haven't made a new high. it is not as though it has been going on and on and on and on. we did pay for the earnings recession of '19 throughout the course of '18. if you do get a little bit of a reacceleration of earnings you don't need a lot, i wouldn't say it would justifily further multiple expansion but it could keep the overall market where it is joe mentioned emerging markets i have been hitting that note all year relative strength for emerging moorkts right now is at the highest level we have seen since june of 2018 russian stocks, the rsx is how you can track. highest since june of '14, six years ago. then we have names we haven't been able at that talk about for a long time. freeport mcmarin is one of the most sensitive names in the market fcx, making a huge move. when was the last time anyone could say anything positive about fcx on the network transports, also economically sensitive, hanging at the higher end of the range that could be a breakout stall to come. i think we have got to look at more t

caps and small caps are more domestic and tend to have a higher proportion of u.s.ocks were hurt bied trade war where suppliers to the multinationals and they're not easy to ship their supply chains or price through and a lot of the small caps were hurt more than investors expected and just the fact we're getting resolution and the u.s. economic data continues to improve and the rotation to values should help small caps as well and we're bullish on small caps and was a change in our view as we went into the year ahead. david: as you're particular in emerging markets. vinay: catching up if i can put it that way. david: do you think their markets will be growing close to the u.s. or ahead of the u.s.? vinay: that's part of the equation. the trade war -- deescalation is the right word the one you used. the problem is not over and will be a long-term problem that we'll live with for many years. but the deescalation is positive news. the key thing for emerging markets and even the u.s. market. let's talk about the u.s. market for one second. i would explain 2/3 of the pr

that means that the small-cap technology companies are looking relatively cheap on a valuation basis.oining us, bloomberg across asset reporter sarah ponczek. really i am showing, now looking like some of these small-cap tech companies look cheap relative to some of those big things. you are looking at the forward price to earnings ratio the s&p&p 500 versus 600 for both technology sectors. 600, as you can see, trading at a discount, at the lowest level since 2001. i will say that we posed this chart to jonathan golub of credit suisse about an hour ago and he said, i would not be too quick to count out these large tech companies. , but theaw the rally earnings picture for small-cap is likely to be a bit rockier. at the same time, many are saying that it is probably time for a leadership shift. amazon, microsoft, facebook, apple, and google, those companies accounted for 29% of returns. outn from blackstone puts an annual list of surprises every year. this year, one of those was that the fangs will likely lose their leadership luster. 2020,st early on in especially today, we continue t

here is in yellow and white, both amazon and apple in that $1 trillion market cap area.lphabet climbing up there. a very elite club for the and interneth names. in the u.k., we had some movers to the upside. company,transportation up 5% as the eu overhang has been removed. it is all most like a thriller, but nmc health up. they've hired a former fbi director to look into allegations of financial wrongdoing. shareholders liking it on the day. abigail, thank you very much indeed. we are back with jeremy siegel, professor of finance at the university of pennsylvania's wharton school of business, also the author of "stocks for the long run." you've talked about the fact that potentially we could hit dow 40,000 within for five years. what is it that gets there, and is it the federal reserve? jeremy: no, it's basically the economy. selling at 20 times earnings, and my calculations that is a 5% after inflation return. we have 2% inflation. that is a 7% total return. total return is dividends, which is almost 2%, plus capital gains, so the capital gains portion is going to be ab

i wrote down notes that one of my cofounders cap.had a vision for software, we had a vision for crm. we had a vision for the 1-1-one-auto. we wrote those down in hired people into the model, and it got going from a 21 years ago, and that's all we did. david: you recently with your wife bought time magazine. do you get to pick the person of the year? marc: i have been telling you, i can't do it. i know you want to be. we shouldn't bring it up here. david, look, i realize you are a good candidate. i get it. i'm not involved in editorial. david: why did you buy time, by the way? marc: we are looking for ways to impact. and add more trust and impact in the world. one of the things i have always loved about time magazine there are four things. one is that it has always been about trust. it is an incredibly impactful business, the stories have dramatic impact on the world for good. it is a fantastic magazine, and it is all about equality. that is where -- that is why we call it t-i-m-e. it is a tough crowd. that was my better material. [la

howard: organic lightning, a-- all caps lightning -- volcanic lightning, a spectacular event. the warning means a has a srtion could occur within hours or days. today, thicklack ash billowed out of volno as scientists nfirmed it had begun to spew lava. a steady flow of local resents left aio 14-kilometer exclus zone. at a petrol station, there were scores of motorcyclists by infield hit elsewhere, -- buying elsewhere, people vnly attempted to clear ash from their properties. >> there were many dtroyed houses. it is him is like a desert because of the thickness of the mud. howard: elsewhere, manila's main international airport reopened today, but many flights are subject to cancellations and the country's second most active volcano la experience a sustained period of volcanic tivity between a kcd five and 1977,--19betwee and 1977. tonight, families taking refuge in evacuation centers are hoping that history w't repeat itself, and today'fllimited lava ow is as bad as it gets. howard johnson, bbc news. laa: turning to u.s. politics, cory booker is dropping out of the race for the

, like japan, korea, there cap is about 50%, so i shouldn't china do similar things?through a quite long process in our but ion-making system, think that is possible. >> how quickly? manyat depends on how companies in the 30% limit are hit, because right now we only have two or three companies that but we haveit, about 800 companies listed. we will see. the good thing about china, our decision making is that we are very responsive to the demands, requirements, the needs of international investors, and we take their needs into account. that was janice regulatory a third -- chinese regulatory authority vice chairman. jessica: a united nations panel is accusing the crown prince of saudi arabia of possible links to the jeff bezos hacking. to bezos belonging was infiltrated via a video file sent by the whatsapp account used by the prince, according to independent u.n. experts. the report says that hacking could influence if not silence reporting on the kingdom by bezos's newspaper, the washington post. saudi arabia says the allegation is absurd. washington embassy issued a

value, but we would say, we would remind people in 2001, small-cap value was actually up. you can get some huge disparities. i think we are getting to the point now where we have to talky overvalueded large-cap tech, and when that turns, that could be really ugly. we always want to be at the time clearly focused. the journal had an articles tod today, when it was ge and ibm, so we have real concentration in the index funds which have had so much money come into them. >>> we have breaks news on the houston astros eric has the details. >> that's right, the owner jim crain just announcing he's fired the general manager, and a.j. hunch. they were both just suspended a year for their involvement in the sign-stealing controversy that helped them win the world series two seasons ago in 2017 that's the latest. an hour ago they were suspended, and a minute ago the team said they are fired they have lost their jobs. back for you guys. >>> after the break, jpmorgan's health care conference gets under way in san francisco we'll have that live for the interview for the c eeismt of illu

they have a huge leadership cap. -ceoshad these new co step in. i am sure people are thinking that these replacement ceos are not long for the position. they have a new executive leader in the form of their executive chairman who was in solved -- who was installed from softbank. i think people feel pretty shaken up as well. employees went through very serious layoffs in the last couple of months. people probably feel their future is a little uncertain. the company seems or stable than it did in the rocky times of september and october, but the future is still probably a little unsure. taylor: thank you for joining. coming up, the food delivery business is getting crowded. grubhub may be looking to consolidate. if you like bloomberg news, check us out on the radio. you can listen on the radio app, bloomberg.com, or on sirius xm. this is bloomberg. ♪ taylor: wall street is weighing reports that grubhub is exploring strategic options in the midst of intense competition and steep discounts. gives fresh evidence that food delivery companies have no cho