jonathan: kathy jones for charles schwab. coming up on the program, the auction block, the appetite for high-yield looks strong as sprint makes a call to the bond market for the first time in three years. that conversation, next on bloomberg: real yield. ♪ ♪ jonathan: i'm jonathan ferro, this is "bloomberg: real yield." i want to head to the auction block. to break them down, what a week it was. there was 200 $50 billion of debt sales from the treasury. the auction showing this demand for treasuries, but investors requiring higher yields. over in u.s. high yields, sprint sold junk bonds for the first time in three years. the deal did put pressure on sprint's existing bonds and investors still craving african bonds this week. billion of$14 kenya's offering, proving the african dollar debt still has plenty of buyers. still with me, matt hornback from morgan stanley. kathy jones from charles schwab. i am pleased to join from london david riley. that push higher in treasury yields, at what point does that move start to compete fo

the chief investment strategist for charles schwab weighs in. we have u.s. markets closing in two hours on the week. abigail doolittle, we finished the week on a down note, but we have come off our lows. abigail: we have come off the while today,ther the major averages down less than 1%. but we had the dow down 2%, this morning, up more than 1%. lots of jitters and uncertainty on the part of investors, not knowing what way to go as this selloff that we have seen. the s&p 500 is officially in a correction. the s&p 500 and the dow on pace for their worst week since 2008, so lots of jitters and uncertainty. we see this also with the vix. the fear index spiking on today. on the week, the vix is on pace for the biggest spike higher ever in a week. , in record lows about 10 moves higher, higher on tuesday to 50, and now we see through the vix, the volatility we have seen all week is higher, not getting back as some thought would happen as we have seen in the past. down, notback happening. fear remains in the market. relative to the s&p 500, the major averages, tha

jones for charles schwab.oming up on the program, the auction block, how you look strong as sprint makes a call to the bond market for the first time in three years. that conversation, next on bloomberg: real yield. ♪ ♪ >> this is bloomberg real yield. werea week it was, there $258 billion of debt sales from the treasury, the auction showing this demand for treasuries with requesters requiring higher yields. sprint jumps on for years. the deal did put pressure on sprint's existing bonds and investors still craving everything bonds this week. there are $14 billion that king was offering. they proved african dollar debt still has plenty of buyers. still with me, met from morgan stanley. plus we can look them david riley had of credit strategy at bloomberg asset management, i want to come to you, that push higher we have seen in treasury yields. at what point does that move start to compete for capital elsewhere in high-yield? >> that is the big question. think the yields will move higher. move taking a big out s

when we come back charles schwab with liz sanders. they have trillions of dollars of your money. has the strategies to keep you from hitting that panic button. live from the floor of the new york stock exchange on foxbusiness. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp the things we do rising before dawn. sweating it out. tough to do it all. but we can always find time to listen to great thinkers and explorers whose stories take us places our hamstrings can't. all we have to do is listen. download audible to start listening. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. folks, breaking news, we just hit

charles schwab chief investment strategist, liz ann sonders and herman cain. we need the pulse from main street. that is why herman is here. how americans are coping with the dramatic swings. first go to the floors of cme and new york stock exchange. nicole, dow and and s&p out of correction territory. of course that could change on monday. >> no doubt. you hit the nail on the head, volatility feels like it is here to stay. we had more than 1000-point swing top to bottom today. we ended up 331 points. we had biggest selloff in points twice this week with over 1000 point-selloff. we had a lot of volatility for the week. dow, nasdaq, s&p, are down 5%. as you noted out of correction territory. 23,955 would have been the correction territory. we've had such an incredible run. look at the vix, the fear index. that jumped to 50 earlier in the week. that is the highest since the "flash crash" in 2015. but today it finished down but had been around 40. so we've seen a lot of volatility there. people that were betting on the downside in very calm market this year got s

> let'srap up this week on wall street and see what may be next fortos with liz saunders from charles schwab. mommy, when is this all going to be over? or is it? [ laughter ] >> i have an 18-year-d and a 21-year-old. so they are old enough not to whine like that. but young enough not to really know what's going on. i jus have to answer to our clients at this point. >> did you see anythg in today's action that tells you that this spasm may be playing out? or can you tell? >> not necessarily. i think you want to see more than just one day that has this kind of reversal. and think you would like to see maybe a string of them or at least a couplem of t that happens in conjunction with a an easing back in the volatility index. even then, i don't think anybody would be so silly as to say all the clear. but i would like the see a little bit more of a pattern develop before we t start take some breaths. >> what are you hearing from clients? are they staying invested in thisrket? how nervous are they? >> it's interesting. our investors who have what we call an advised approach, a disciplined asset al

panicking, new york stock exchange president tom far ley, says the markets indeed are working charles schwab and investment strategist on what if anything she's buying and republican senator rand paul whose now under fire for trying t fight all that spending. we begin on why with friday's gain even with it investors are still worrying aren't they? >> yes, neil my head is still spinning i'm sure yours is as well so that's right. even with friday's rebound this was the worst week, percentage wise for the market in about two years. as for points, the dow sow two of the worst drops ever. it shed 1175 points on monday, and then another 1032 points on thursday which sent the dow into correction territory. that's a decline of 10% from the high on january 26 and then on friday cayman upswing os of 330 points and many blaming the wild swings on exotic trading tools like betting on the volatility index or the vix known as wall street's fear gate jumped 67% this week but the president telling you, neil despite all this craziness the market functioned well. >> we have the inverse and leveraged instrumen

matt maley with miller tabak, kathy jones with charles schwab, and mike santoli, thank you all. >>> ahead, what long-term investors need to know about the market sell-off. ♪ ♪ >>> all 11 sectors0f the s&p traded lower today. financials, the biggest hit, off nearly 5%. >> and wells fargo contributed to that sharp decne inhe financial sector, the stock falling 9% after the federal reserve took an unusual step late friday. it basically put the big bank in regulatory purgatory. the move a response to the bank's fake accountsal sharply limits wells' ability to grow until it takes certain internal corrective actions. wilfred frost has the details. >> reporter: an unprecedented reprimand from theal fed reserve for what is described as "pervasive anderstent misconduct" at wells fargo. the fed will limit wells fargo's growth by capping total assets, something regulators have never done for now, wells fargo cannot grow any larger than it was at the end of last year. that means the bank could have a harder time offering new loans to customers at a time when interest rates are rising. the punishment

it's as simple as that and i'm not trying to be at all -- liz: would that be charles schwab who deals with retail accounts or td ameritrade? there is this belief that the retail investors getting stampeded because you guys are that first to pounds within milliseconds. >> well no that's not the case. we're market makers, we don't initiate activity by taking a position. we're reactive we place a bid and an offer. that's a whole other academic conversation. i would say this any manager, any senior manager charles schwab we've done this with t row price at virtu, with many of the large asset managers and it was part of our process to introduce the firm and its value proposition going public. we actually did technology demonstrations and quite frankly some of those very large asset managers who were once curious about the electronic market structure are now customers and use our services and use our technology so -- liz: well the perception is that you guys are doing incredibly well and you're beating everybody. we've just been cycling through virtu's stock and in one week its done the com

all this calling the website in the blocks of rogue regimes such as charles schwab and ameritrade mutualunds and it shows visors to suffer outages and slowdowns. unnerving individual investors to access their account during the market draw. meanwhile, the vix and the s&p 500 jumped 175% to 37.3 to come the largest one-day percentage gain in her come a 10 year average for the first time since november 4, 2016. the white house remains optimistic. here is what are huckabee sanders had to say about yesterday's market move. the president's focus is on a long-term economic fundamentals which remain exceptionally strong with u.s. economic growth historically low unemployment and increasing wages for american workers. the president's tax cut in regulatory reform will further enhance the us economy and could she need to increase prosperity for the american people. the dow was up almost 33% from election day and 183,321 -- a lot to digest today. lauren: as you're speaking down almost 200 points on the dow. turn into just in a couple minutes. we are flat and we are down. obviously searching for som

vonnie: thanks to jeffrey kleintop, charles schwab chief global strategist.he federal reserve just devised harsh new punishment after wells fargo landed scandal after scandal. the stock is lower in reaction, down 7.5%. why this decision could haunt every big bank next. shery: let's now take a look at a live shot of president trump leaving joint base angers. he is heading to cincinnati to give a speech on his tax reform bill. he will talk to a manufacturing company there and he will be speaking to the crowd before this, coming at a time when house and senate staff are working on another stopgap funding bill. live from new york, this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. shery: i am sherry quint. yellen's final act. they filed a cease-and-desist letter with the lender having its rating cut by three analysts and fell the most in more than three years after the fed band the bank from growing until convince his authorities it is addressing shortcomings. michael moore is bloomberg's team leader. this was a pretty harsh consent orde

the chief investment strategist for charles schwab weighs in. we have u.s.ng in two hours on the week. abigail doolittle, we finished the week on a down note, but we have come off our lows. abigail: we have come off the while today,ther the major averages down less than 1%. but we had the dow down 2%, this morning, up more than 1%. lots of jitters and uncertainty on the part of investors, not knowing what way to go as this selloff that

joining us is chief economist at charles schwab.s a get jobs tomorrow because we had a tepid december and solid november, and where moving sideways right now. >> you can't expect the growth rate of jobs to come up at this level unless we have a lot of new people coming to the job market, which might get a few more, but we are not going to see a huge jump. is a lot to or so fuel a tighter job market and more wage gains, we are hoping. vonnie: what type of wage gains are we going to see? is it going to be incremental? it to bect incremental, i don't think there's going to be this hockey stick where we jump to 4% year-over-year increases. it has been steadily gaining, and it will continue to see that as it gets lower and lower into the pool of available workers. part of what we are seeing is baby bloomberg retiring, and is skipping the aggregate down, but the wage tracker that tracks people in the workforce, we have seen a 3% plus. that is where we are headed. shery: steady gains, what does it mean for the bond market? pick up a little

charles schwab is here with us. liz ann, i guess this started on good news and the feeling that interest rates were not reflecting the good news. are you of that mindset or is there something else going on? >> so we got a big caution last year. the 2018 outlook in mid december had the theme and title it's getting late. we're referring to where we were in the economic cycle. in that stage typically in the latter stages, you see a change in the backdrop and the flavor of the types of indicators that can feed in the stock market like the pickup in inflation. it was the wage growth number last friday that was one of those kickers, the ten-year treasury yield. prior to that came up through 2.7 and 2.8 there. i don't think those were the fundamental factors. then you had the technical factors that you touched on that exacerbated the move and augmented that volatility piece of it. >> maybe i don't know what the schwab position is and how they deal with customers that are nervous. for those that want to get out, they're jus

for more on all this, we turn to liz anne sonders of charles schwab.iz anne, thank you for j.oining what happened? >> i think it was a number of things. you pointed out the the year over year increase in hourly earngs jumpe 10.9%, a en-year yield in treasure a blrough 2.8 on the up side. the last time we had a pullback in the market a week or so ago it was when ten-year yields went ove 2.7. the flavor this year is different where we're starting to see ilation, develop traction and concerned that will result in titer monetary policy, but it's a 2% drop. >> woodruff: right, we have to eep that in mind. some people have been talking about a correction, a bubble in the market. could that be what's going on here? no, i don't think it's bubble. what i think was one of the problems that may have led to a bigger decline than maybe the fundamental suggested was appropriate is sentiment got quite a bit frothy. after nine years of skepticism about this bull market, in the last couple of months we noticed a real significant retur particularly in individual investo

or what about the charles schwabs of the world or the td aher trades which have certainly seen activity going up? my tellty? >> yeah, you've got me on those, because i don't follow them. if you're looking at the morgan stanleys of the world or the goldman sachs or the jpmorganings, you know, they have an inventory cost. and as interest rates go up, the value of that inventory goes down. yeah, they get a benefit, but the fact is the cost of the inventory that they have is going down so that they're not seeing a big increase in earnings as a result of the increase in volatility in the market. in other words, bottom line if you want to make money in banks or, you know, financial companies, it's because they're selling more of something. and the something that they sell are loans. and if they don't sell more loans, they're not going to show an increase in earnings, and their stocks are not going to do well. and so far they're not selling a heck of a lot more loans. liz: we have a very long bull market. it is now in its ninth year. growing a little gray around the temples, dick, or do you th

several guests to join us here brian levit with oppenheimer funds and and evan klein top with charles schwab. is that the tradable bottom, the collection we were waiting for >> i suspect it was generally in line with what has happened over the last 30 years, the times when you've seen interest rates move up. typically, the move in rates is around 80 to 100 basis points. it usually happens around 80 to 100 days and the average correction's around 10%. usually what you see in the 12 months after that are positive returns on market, so i suspect it is the global economy looks good, inflation is, despite all the warnings, people's concerns, is not escalating significantly, so i do think that was a turning point for the market. >> yeah, doesn't seem like there was a lot of concern about the numbers that we saw out of the cpi yesterday. jeff, how long can we watch equities move higher as rates also tick higher at what point does that begin to break apart? >> you know, i don't think there's a particular point at which it breaks apart. historically, it's been 5% we're so far away from that. i think

is going to take a closer look at everybody's favorite >> all that weather brought to you by charles schwabt you. >> oh, i heart you back. >> thank you very much. it is valentine's day just a week away, okay. time to start planning. don't be a last-minute person but you know what goes with flowers, candy and a romantic movie. >> perhaps this one. the upcoming blockbuster "fifty shades freed," i like saying it that way. "fifty shades freed," jamie dornan, dakota johnson, they're back. it's their last time and telling all right here only on "gma." >> good morning, wife. >> reporter: it's the final sexy steamy chapter of anastasia steele and christian grey's love story, "fifty shades freed." >> you may call me mrs. grey. >> we caught up with the movie stars in the city of lights where they shot their character's honeymoon scenes. >> at the end of the shoot with a week in paris and week in -- it was a bit of a holiday. >> not everything in the movie was quite as easy. >> we're being followed. >> these driving scenes, for instance. >> she's a maniac driver. she's a really good driver but the fir

jeffrey kleintop with charles schwab. let's review what we have got right now.ry news flow and that interview that we did ansky television is just amazing transaction. we have china as well. what are your immediate thoughts on sky? francine: first of all, this is a fight to get sky so we do not have a transaction yet. it is likely when you speak to people in the market that they will start fighting for this asset. we need to look at regulatory concerns and we need to ask ourselves why it is such a valuable asset. it goes back to the sports rights, but it goes back to some of the great technology that sky has. tom: please stay with us. we will do first word news across the hour. brian levitt will join us from oppenheimer funds. brian levitt on global market equity melt up. 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

she's the chief fixed income strategist at charles schwab kathy, thanks for being here today.ed through 2.9% this morning back at 2.83% what's really happening with rates? was that the real froth and fury last week or do you expect to see us continue to push higher >> i think it will continue to grind higher there's a structural change taking place with the fed pulling backand the other central banks pulling back with the quantitative easing and market stimulus. the market has to absorb more supply that brings back volatility and higher rates we're rounding up a pretty hot economy relative to potential and adding stimulus at the same time we think rates will continue to move up. >> there's two stories we've been going back and forth about this over the last week or so the good news is the economies continue to push higher and that should push rates higher the bad news is you're seeing central banks go higher. which is the dominant story? what would you be telling people rates are moving higher for the right reasons or rates are moving higher for alarming reasons? >> i'm not su

charles schwab put out a report to its individual investors now might be a very good time for you tobig come ocean in the senate over this big budget bill that he says is an embarrassment to both parties. rachel: thank you, neil exciting show don't turn off the tv after fox & friends. neil: you are the wind at my back, thank you. rachel: up next giving back to our military brides these women selected to get three wedding gowns for their big day hear their stories and meet the designer who made their dreams come true. >> ♪ i think i want to marry you ♪ they appear out of nowhere. my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. what plots they unfold, but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment options that can help. my visitors should be the ones i want to see. rachel: they've given so much, military brides who have either served themselves

charles: ross, erin, peter thank you all very much really appreciate it. we'll be right back. finally. hey ron! they're finally taking down that schwab billboard. not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. charles: back with us carve id nelson and erin gibbs, i want to ask you because people are trying to assign blame and there was a headline in the new york post yellen fears bu

charles schwab will stick with us. david: the grand budget plan brought peace to congress, but at what price? what price for those concerned with the deficit? cory gardner is one of those who called for lower taxes to be matched by lower federal spending and we welcome him from capitol hill. good to have you with us. senator gardner: peggy for having me. david: i am going to put up a shows the projections for the federal deficit have gone up given the combination of tax cuts in the budget plan. how concerned are people like you and your colleagues on capitol hill about what is going on with the deficit and increased borrowing that will come with it liz ann: -- come with it? liz ann: we know that as debt --sen. gardner: we look at the debt gdp ratio in a decade or so that reaches 300 some percent and that is sort of an economic crisis collapse as the government tries to find the money it needs to finance its debt and ever increasing