we sold off friday, it was a derisking for the weekend. it was some china trade worries, still, some trump firing worries, still i'm surprised we didn't hear one after the bell rosenstein is the big one that's rumore rumored. >> on a derisking day, why do we have the derisking primarily taking place in the financials versus other sectors of the market, right? financials are down in the worst performing sector. >> they've also been the best coming into this what led today was energy because energy was the worst performing >> markets had their best week in a long time and i thought the rest of the industries closed fantastic. industries basically closed down 10 to 30 bits. i actually think it was a very interesting -- i'm not calling this a change of character >> it was an outside day, but i don't even know, when we talk about outside days, i don't even know the trend that's changed. is it an up trend or a down trend? we've had kind of both >> it was a down trend >> so then you have to be more bullish. but i would think the markets can move

they really didn't have the power to derisk the system, which should be their job. and what this piece of strongly bipartisan legislation does is empower fsoc with the ability to reduce risk in the financial services system by working in a collaborative manner with companies that it is considering designated and the primary regulators of those companies to develop plans to derisk those companies. and, mr. speaker, wouldn't we be better with a financial services system that has less risk in it, fewer companies that are considered systemically risky in substance as opposed to having a system that is inherently more risky or has greater risk and has more companies designated? in other words, designation doesn't in and of itself reduce risk. what reduces risk is primary regulators working with f fsoc and companies that it deems potentially worthy of designation too develop strategies and plans to derisk those companies. that is precisely what this does. the speaker pro tempore: the gentleman is recognized for 30 seconds. mr. delaney: we believe as many of our republican

at western, we do derisking. if there is another move down, that cccs will probably underperform.ow there are opportunities within that. we look at it on a case-by-case basis. jonathan: we see credit widening and high-yield, you look at the picture that equity investors give you over the last couple months it seems volatile and rough. if you look at credit alone, you would not see it, would you? >> it looks like a lot of volatility, you zoom out to three to five years, these are narrow and tightly wound up. all these things are true, and your points on cash alternatives is a great story. i think investors have a hard time moving around their portfolios quickly. you are seeing it in the divergence from underlying cash, people are looking for putrance, they just can't it all in at once. jonathan: there has not been much high-yield supply coming into the market area is that affect as well? >> there aren't supply and demand dynamics that influence where yields are spread. i would go back, we do not find a huge valuation anomalies. more toward the world.g i think that is a longer-term

cat i think that be derisked after yesterday's sort of, you know, commentary from the company.nk it was a little bit misconstrued and probably a little bit overblown by press and media. cat is still an excellent level to step in and buy stock >> derisked is a polite way to put it >> exactly >> on a day like that. pete, what about you >> i agree with david in terms of some of the commentary being taken. taking the context to the next level. in terms of boeing, though what numbers weren't great i mean, absolutely across the board, kelly this is a stock that everybody's been trying to shoot at. where it did get to highs earlier. the projections going forward and earnings projections going forward, the guidance was strong deliveries last year were a record and those numbers were even better so there's nothing about what they reported that doesn't tell you right now that boeing is still the place to be. >> no doubt. the guidance was strong. and the guidance was probably conservative i'd say there's probably upside to that. my idea is you see the stock continue to work higher here >>

business, pants 8 to ten weeks from i have an idea to i have product on the shelf number one, you can derisk your buy by having better information about what the customer wants, whether it is print, pattern, silhouette, ankle treatment or whatever it is number two, in an environment where traffic is negative overall, you are not going to buy to a positive unit number pre season and that is unit growth. >> let's talk, you put all of the real estate investment trust that are involved in retail on, there are good malls, good centers that had vac cancies. >> we have 140 stores right now. the business is 50/50 direct to consumer online and in stores. we are going to continue to build stores at a responsible rate athleta is really, it is super cool for a number of reasons most retail came from physical and went online. athleta came from online and catalog and going physical and focused that we are building the retailer of the future someday you and i will be talking years from now, and looking at this moment as the brand. values issue that our customers are super responsive to. the engagement in t

they think about derisking do you derisk by trimming ex equity exposure?you look at the short end, you see short ends investments currently yielding 2.5 to 3% while taking less of one year -- >> the price structure those investments down >> exactly >> they're short term, you hold them you don't do that back to where the rest of the curve is >> ultimately, next year you get an opportunity to re-invest. >> excellent jerome, you are always great in expaining these favors. >>> the beijing auto show is kicking into high gear trade centers are front and center phil lebeau is with us from that auto show in beijing phil. >> reporter: david a lot of discussion about what china's 25% tariff on imported autos means to the people buying vehicles look at some of these numbers. you will see the difference in price between the u.s. and china. the base model sells just under 80,000 over here it costs 50,000 more the bmx in carolina starts over 57,000 in the u.s., that same vehicle sells for almost 120,000 over here. yet there is no slow down for demand of vehicles shipped

that are fairly valuable but i look at technology i look at some of the names that have been really deriskedr taken the valuations have been reset, if you will, just given the concerns over some of the mega cap, facebook, et cetera, i think we saw that sort of purge or that derisking that occurred within some of these really crowded trades to me, that's exciting the pullback was a buying opportunity. i look at the likes of facebook going into earnings. i look at the likes of netflix going into earnings. i've been buying these stocks. i think that facebook is actually set up really well here to really beat the numbers >> they can beat on first quarter but you think they're going to come out, david, in this political context and say, q2 looks amazing and the rest of the year looks amazing that would be sort of tone deaf. >> we went get guidance. >> but talking just in general >> here's what i would say i think this is a trader mentality. the stock is trading based on 11 times -- it's inexpensive for the earnings growth trajectory they have. but here's the story engagement engagement is not goi

surprised with a more aggressive approach to raising more capital, which is more at the same time, derisk equity story. and probably negative as well. probably need more capital than what we have today and more equity versus previous expeditions. these are very serious concerns that neither management nor the board can ignore >> let me step away for a moment and find out if you have more reason to be nervous or not. on the call you've made today. phil is going to join us now with market flash on tesla and some numbers phil >> take a look at shays of tesla again and you'll see within the last half hour to 40 minutes, shares have moved u. at one point, they were trading about $244 a share now 256, 257 one reason could be that a website is out with a report saying it has obtained an internal e-mail from musk to employees at tesla in the e-mail, he says the production rate is 2,000 model 3s per week. they'll be at that rate for one week straight if they can do everything as planned today. so that would make seven straight days. again, 2,000 model 3s per week would be the rate for the last wee

the trade is to be long telephone >> is it a buy if they don't get the deal >> i think it's been deriskedthe point where it doesn't go down the risk sought of the story if the deal doesn't go through. and you get a 5.8% dividend yield right here it's only upside if the deal gets done. obviously they need the company. if the deal gets done, the stock is going to rip. >> some of the changes in accounting, that's find. eps in line. the question comes down to this. it better hold $33 because that was the low in november. i think that's a critical level. we're close to that. now and what's the right multiple for a company that really doesn't have any eps growth in this space i get the whole dividend thing i think pete would agree with me dividend is the cherry on top. >> it's the last category you look at is what the deal is. >> it's a company whose valuation might have to start to look at a little more critically >> to answer your question, ten times next year, ten times the year after that too? >> you tell me >> not that exciting on earnings growth i think $33 is your line in the sand >> got

. >> sarah huckabee sanders in a derisk action saying we will all be talking about james comey for number of days to come which i think, shep, is probably right on the money as he is beginning his book tour. a lot of people will be reading this book as well. the publisher has advanced 850,000 copies of it one thing for sure comey is going to get rich. >> shepard: he talked to george stephanopoulos about the investigation of hillary clinton's emails. >> he did. he talked about the email investigation and in particular why he in october of 2016 came out and said that he was reopening the investigation into her emails writing, quote: it's entirely possible that because i was making decisions in an environment where hillary clinton was sure to be the next -- concealing the investigation more greater weight. that quote and others brought a sharp response from robby mike -- [broken audio] >> shepard: i think we probably need to check the battery in that microphone. it's just not working anymore. we will talk to you later. we get the message "slime ball." there is the final thing. president trum

we're going to derisk this and start paying you a dividend for investors like me to look at it seriously. that's what's missing in the story. do you hear anyone else complaining like this? >> absolutely, and it's a great point. i think the company should today, but growth companies in particularly in the technology industry, always have a challenge with that transition from retaining capital to giving it back to shareholders. and google historically has never really been interested in doing that >> but microsoft is beating this it pays a dividend it understands what matters long term >> i agree with you 100% i think the good news in this is that that's not in the stock because investors that own it have been disappointed in terms of not seeing any of that return whether it's through buybacks or through dividends. so it's not in the stock it's upside to the extent it comes. and i agree with you 100% that it should come whether the company actually does it in the near term is highly debatable >> we'll see what happens. thanks, as always. >> thanks. >> last point goes to you. you own it >>

see this across asia -- savings rate, people self-insure, we can be risk the consumer position -- deriskon and get them back in the real economy. stephen: how is new business profit looking? if you are going to be getting more favorable treatment and also business? i think it more than doubled for you. mike: it did, and we are up to about one million clients, which in any market would be about 2 million policies. the profitability of a we so here is good and the value for the consumer is very good. one of the things about the consumer's expectation of how they interact with you. these are some of our best platforms and technology. stephen: i believe you applied for a -- in asia, how is that progressing? mike: beyond fine. snags, no roadblocks. we are moving on at pace. consistent with the government's comments. stephen: mike wells, prudential ceo. that is it for today -- no, i think we have more coverage of the forum. a busy day. more tomorrow. guy: it has been moving markets already. stephen, thank you. fascinating interview. stephen engle's joining us from the forum. let's get back to

corporate's to do liability tight matching for pension funds for derisking. that is heavy demand.ntil the treasury's pickup, which they will, we use a treasury-forward forecast, it will be harder at the long end. kathleen: i would like to ask you, this was your annual press function earlier today in new york. you said he could go above 4% by 2020. a very important track that could change that picture. you said your biggest risk is not the economy, it is geopolitics and politics. what is the trap that could stop this rise in the yield and maybe turn it into bonds again? dan: the trap is for the central banks. the major central banks each have their own circumstances that in some cases, like our own, go beyond their mandate, their normal written mandate. our central bank was formed by the legislature, by the congress. the banking system running. you can be looking at numbers. in fact, i have this queasy feeling today as i see the numbers come out, incremental numbers on inflation. inflation starting to pick up, that would go along with raising rates on a steady basis. arenaf the geo

hedge funds trying to derisk a little bit as volatilities ticked up. >> i love that larry said companiesulling money out to do buying things and buying shares look, i think that we have two markets. we have the -- we have the washington market, and we have the other market and when you see the tweets that the president seems to walk back syria and the president says, listen, if he wanted to fire mueller he would have done that, that is the failing, fake. i've been trying to get a job there until i went into financial services it's a shame to see the times failing, but the stock says -- >> no. we made that point since he started saying failing, the nyt has done nothing, but go up. >> i think people are worried about syria, and he did seem to take it off the table, but then again, he's so wiley, he said may or may not >> it's not entirely up to us. merkel said germany would not participate. who knows what will happen this weekend? >> you would think that we would be headed down already in advance, but so far the tone of -- well, the tone of today started about four hours ago we've had thes

also point out that in this under performance emerging markets as well, so this is not the classic deriskings one where you see people looking where they can get earnings growth. >> is there any area where you say, enough, i'm out of here any industry given what's going on in the world right now? >> well, we did it with reads and gold earlier this year. >> got out >> got out. we were concerned with general yields rising what it would do with reats >> we would underweight utilities, staples and energy and have been. they've under performed, if you look at it over the last 12 months, they've under performed 15% relative to the broad industry. >> thematically, stay in equities through this correction noga tracttive yet on fixed income to move a major allocation there all of you seem to say put some more weighting in em because it's a cheaper pe. is that a theme we can agree on? >> i'll go back to that. we're also under weight. utilities are under weight, telecon. i want to be careful when you say you're stepping away from. we're stepping back from technology we haven't moved to under weight we