david riley from blue bay asset management is still with us. one of the big potential reasons why people are nervous at the moment is trade tension between the u.s. and china steve mnuchin meeting with chinese officials this morning it does seem like the two sides are discussing differences, but do you anticipate thanks to the impact from tariffs imposed on both sides that things will essentially get worse before they get better? >> i do think we're more than likely to see escalation in the tensions between the u.s. and china, which i think are broader than trade discussions that colleagues have been having with policymakers and politicians on capitol hill is that it's broad based on both sides of the aisle support for taking on china. and that china has been abusing the global trading system, that it has been stealing technology, et cetera. though not everybody supports the way that trump has been pursuing this, we're more likely to get some escalation and steve mnuchin is one of the doves. i'm not sure he's driving -- i'm sure he's not drivin

it is a joy to have david riley with us. what do you do with your portfolio today?g to sell because of mr. erdogan or mohammad bin salman, but am i going to sell because david riley says things are ugly? >> things are pretty ugly at the moment. i think we have moved into a higher volatility regime. ist of the reason for that because we are entering the end of that quantitative easing era. u.s. rates have been moving higher. for globaldelta growth. growth isbout china what is spilling over into european growth, assets and equities at the moment. invested,o is stay but look for quality, look for where you are getting paid for the risks you are taking. do your stock selection and pick up that yield and that carry. now is not the time to try to hit the ball out of the park. stay close to home. francine: talk to me about oil. we were just hearing from president erdogan of turkey. he said that it was saudi operatives that murdered the journalist, but was not linking it to the actual leadership of saudi arabia. what does it mean for the price of oil? >> good question. we a

nejra: wonderful to get your perspective, david riley.astic to have you with chief investment strategist at bluebay asset management. he stays with us. coming up, you do not want to miss two fed president on bloomberg today. beth president of the federal reserve bank of chicago joins us for an interview just after 11 a.m. london time. minas: and another voice from the fed later on. jay powell last night. and the president of the federal reserve of philadelphia. both will speak on bloomberg. ♪ ♪ are taking a look at a live shot of washington. the latest rhetoric from washington to the king of saudi arabia, watch out. he would not be in power for more than two weeks area a warning shot from mr. trump. the press reports that the italians may, may lower the deficit. that is moving markets of this morning. speaking of which, the fed chair, jerome powell, has said he expects to stick with the central banks gradual path of interest rate hikes. calling it a reflection of economic strength of the times you are in. this historically rare pairing of

there's a domestic political issue as david riley plays out.re making alternative plans in real-time and a reduction of production and what it might do to inflation. >> for member britain is the world's original trading nation. try to so much more important to britain that it is here in the united states so frexit is a disaster. so excited they spend time making fun of their own british accents. sticking with us. i want to recap the news from ge because that stock is now popping over 10%. john flannery is out and you have lawrence culp who was ceo do not how long john flannery how the ceo job total? months as ceo, 12 month. 365 days. david: one of the things i find interesting is when he was coming onto the board he was in expert and accounting issues and he could figure out what was going on p read just had another accounting problem and they took down their estimates. goodwill wellion will follow this news throughout the morning as well. much more coming up on ge. this is bloomberg. ♪ alix: this is bloomberg a risk on rally in the u.s. as a n

mayor riley is a democrat. representative david mack. do you think those people are evil, as well? i think that kind of rhetoric is destroying our country and it is that kind of rhetoric she wants to bring to d.c. the kind of rhetoric that i would like to extinguish. ms. arrington: can i use my rebuttal? dean: yes, you may. ms. arrington: ladies and gentlemen, joe cunningham is trying to paint a picture. let me be clear. when you -- when the picture came out of the people being lynched, he did not condemn it. he didn't condemn it when the rumor went around that i was faking breast cancer. he did not come -- he did not condemn it. in fact, he wouldn't even condemn archie parnell and his wife abuse, spouse abuse. we are talking, this is a problem. not owning your mistakes. dean: time is up. diana, your question for joe cunningham? >> students are worried about wracking up college debt and not being able to play it off for decades to come. what are your plans for making education more affordable? mr. cunningham: college education should be affordable. i am happy to have my degree in o