eem maqbool reports from chicago. fall: it is aia humng from grace.to appearances on the red carpet, jussie smollett has en snapped for his mug shot. i best known to u.s. audiences for playing a sensitive and troubled r&b singer on the series "empire." this is exactly where jussie smollett said he was attacked in the early hours of the morning when he had gone out. he said two men punched him and subjected him to racist and homoobic attacks, at one poi saying this is "make america great again" country. suggestinghey had been trump supporters. jussie: i picked up the phone and i said, brandon, i was just jumped, and then i see there is a rope around my neck. imself the president was among the money who came outo conduct the attack. pres. trump: i think it is horrible.es 't get worse. what police say the brothers -- but police now say the smollett himself to stage the attack because he was unhappy with his salary. >> "empire" actor jussie smollett took advantage of the pain and anger of racism to promote his career. i am left hangg my head and asking wh

. >> take a look at eem, emerging markets.ike the relative valuation, potential catalyst would be a softer dollar and something positive happening on trade. eem. >> guy. >> will you make me a promise you watch the game you don't watch it with a magazine or some apple device in front of you. >> the whole entire game >> she will not. >> i know her. >> come on, you know me too. final trade. >> the guidance should have taken the stock lower and it went higher, that's a tell, mel. >> do not go awhe.nyer "options action" starts right after this to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪ but they can be welreally expensive. a puppy, so to save money i just found them a possum. dad, i think he's dead. probably just playin

eemed to fall into this cloud into fusiconfusion. heid say there was an incident that i dressed up in black face, nt e though he responded that it wasn't him, he realized that it caused a lot of pain and a lot of hurt and he wanted to bring healing. >> i think at one point he even tried to clarify and say listen, i'm apologizing for it beimy on page, but that wasn't me. >> reporter: right. >> still a developing story. david thank you very much. they talked about the close relationship they have with one another. here is a little more about what northam said about fairfax today. >> i have spoken t him in person for a good period of time yesterdayte oon, after this story broke and i believe at leasty three types b e,phon have kept him apprized of what is going on. heee has b supportive. >> also saying that lieutenant governor needs to take over as governor, he will do so. the pressure for him to resign has intensified. protesters gathered outside the governor's mansion calling for him to step down. they held signs begging for the go in

because there is a hypothetical question put out there i'll answer here with this tweet this i shake with eem who says the solution to misinformation is more information rather than no information as clampdown is only aimed at curbing free speech and dissent a hallmark of current of the current regime they're calling the government regime they are just as in his right. salon and says you are right we like him from our you know i know what i will i will i will like that i'll read to you i want to play a video comment though from someone who is of the mind that this might just be a slippery slope she works for the center for internet and society in stanford california here's her take the things you remember and the cryptic message services is that you can't just break the exception for one purpose such as trying to combat news you're going to break it for all purposes so while it might be socially beneficial for the indian government to be able to stem the tide of fake news the proposal from the indian government would also have an impact on people's ability to organize political rallies to com

our department of labor doesn't eem to care. that's part of this whole picture. second question, mass incarceration. my colleague, corey booker from new jersey, and senator durbin from illinois, pushed the first -- the first step act. it was just that. the first step act. but it's important. aclu would say that much. i would say it's a little bigger than that. i have also worked on ban the box, part of their reintegration back into society that they can't ask about prior convictions as they go into the workplace. i worked with president obama first doing it by executive order, later by statute. and voting rights, i was secretary of state and served with bill gardner who i think has been secretary of state since the spanish american war, and -- not quite. he -- i have been working on voting rights issues my whole life. when i was secretary of state election officials and even republican elected officials, those election officials in those days if they didn't really believe in expanding the franchise, they sure didn't. they didn't fight to restrict it like the repu

. >> to tim's case, the eem hits almost every single day and they have been mostly correct upside bullish activity. >> that makes sense. it's one of the most crowded trades on wall street. >> and yet it still continues to work if you go back just a couple of weeks and look at where it was and look at the options where people have been betting on this and they have been right they just continue to roll, mel. you see guys taking profits but rolling up and rolling out and still looking for that same trade. >> it's odd to me. if all that is so, and it seems to be, right, why do we have a 10-year that's here? something's amiss. i don't know what it is. >> you can't have stocks and bonds doing what they're both doing here bonds are telling you there's something very, very wrong stocks are telling you there's something skvery, very right this takes you back to times when equities have been the only game in town. >> putting all that together, i like what i own. i've got to own some puts because the vix is relatively low. maybe something is really wrong, i don't know, but i need some protection. >

patrick: we started adding emerging markets to an etf very similar to the eem in december and it feltcompletely contrarian trade. a lot of things working against emerging markets, the fed was a bit more hawkish. since then, it has become a consensus view so that is a bit of a worry. the fed has given a gift to emerging markets. the biggest risk was a hawkish fed. we don't have that anymore. we have a dovish fed. the strong dollar, we actually it will not be a headwind for emerging markets because we only expect a very strong dollar if the u.s. economy is very strong given the other political issues. trading at 12 times earnings, despite the fact you have had slows. it has not become an expensive market by any means. still trading at a discount to most traditional measures we look at. anna: crowded but not expensive. so no need for it to unwind? patrick: i don't think so. when you are getting 2.8% dividend yield in emerging markets, definitely growing, that is a nice carry. 12 times earnings is not extremely high. emerging markets can fall to nine times earnings, but 12 times earnings

>> even if i had, i wouldn't admit it >> topic for a new note from jpmorgan today, suggesting that eem use its nearly $250 billion cash hoard to acquire netflix. it's not so much that this idea is new, it's that it's coming from jpmorgan, which is really endorsing the idea that was once kind of a joke that apple should buy netflix. now all of a sudden, this seems very mainstream. >> mike, we've kind of talked in the past about the speculation of who apple is going to buy and the important thing about this note, is they do say, for the record, this is just pur speculation, so that's big >> to me, the takeaway is that the clients are asking analysts, what is apple's next act this is a response, implicitly, to the idea that, okay, fine, it's no longer an iphone growth story in terms of units. we know about the software ecosystem, but is there one big corporate strategy type move they can do with all the cash. and netflix, it seems like that horse is out of the barn in terms of the value of it >> the only -- i actually kind of love this concept, because it's clear that user growth is going

their stock markets as well one of the main etf's that tracks the shares emerging markets, the ticker eemcontinue >> yes i think basically we see strength across the markets. chinese markets and emerging markets. all of that is clearly due to the improvement of risk appear tut, and the increasing -- that the dedsline for the china u.s. trade talks or trade deal will be pushed out. i think that's benefitting all emerging markets currencies commodities, equities, and i think that should continue because it seems like the most likely scenario. >> all right cat cathy, we have rhetoric between the u.s. and china with regard to the chinese yuan, and its value. what do you think about the current valuation here does the u.s. have any kind of sway here? >> i can't imagine they won't. china came out and said they won't use their currency on trade. we heard the same sort of language with japan. i think they are truly motivated to get a deal done they're not going to allow the currency to move all that much and to weaken much further i think, you know, in some way direct or indirect, the u.s. defini

i think toning down the eem overweight -- down the eem overweight, china is interesting.nt is trying to use this trade good news to try and rebuild momentum and sentiment in the chinese sector. i think there's signs the authorities are encouraging this rally. you know this is a really momentum driven market, and we've got potential inclusion coming up that the authorities are trying to say, let's brief some life back into the private sector in china. tom: a 40,000 foot question on em, the china challenges like moving surplus to deficit, how does that diffuse to their adjacent trading nations? think these i nations are overwhelmingly dominated by this, particularly the ones plugged into the supply chains that are manufacturing a cycle out of china. they have taken a big hit -- a capex cycle out of china. they have taken a big hit, and i think this will continue short-term. there may be some positive side effects from ongoing tensions around technology and supply chains, particularly u.s. companies looking to move supply chains out of china. some of the countries in the sur

commodity stocks, i would argue they have not priced it all back in emerging markets as merkd by as the eemring this time we've reassessed global economy, reassessed global growth and that's the problem with this analysis now industrials have outperformed the s&p by 650 basis points december 24th and that's a pretty good outperformance. >> if we do get a deal, that raises the question, does the fed step back in if the fed has stemmpped to the sidelines in this period -- >> no shot. >> not right away. >> you'd have to see -- i frankly think the fed will announce they'll tolerate higher inflation. i think they'll target 3% and 4% inflation. i think it's going to be an awful long time before the fed steps back in. >> our next guest says a trade deal is not all priced in. a strong trade deal could unleash a market rally here. let's bring in the head of u.s.ic quit strategy at bank of america merrill lynch. welcome back, savita. >> thanks. >> a deal means a real deal. >> i would agree with you that kind of a partial deal, which is no new tariffs but we don't roll back any of 2018 tariffs, that's

. -- eem like good products good politics. thingsme of those are democrats are running away from, part of the recent joe biden is wary of getting into the race. he will be held accountable for some of the issues that they supported back then. but gun control is back in capitol hill. i think democrats in chuck schumer are very wary of that after the crime bill passed. now they see that as a potential issue, they can't with republicans in charge of the senate, but think you will hear more talk about it. aboutssue has come back -- around some of the other things which are now haunting the political careers. >> let's look at more video from august of 1994. >> i am joined by many of my colleagues, who are supporters of the crime bill. i will introduce them one at a time after i finished speaking, but we want to thank you. thought we would show that the american people support every portion of this crime bill. they favor the ban on assault weapons 71%. they favor three strikes and you're out 74%. they favor more funding for law enfo

they see $30050 to adjusted.on 2019 the gross margin expected in the low 40s at the moment but it eemse capital expenditure in 2019 will be roughly in line with 2018 but music to investor ears. >> not at all. ou're seeing a huge pickup in volume. average volume, this tracks the volume of mattel shares and you up. see the move the leg up, halt in trading. there is that leg up once again. average indicates the volume for the last 20 years. we've surpassed that by a wide margin here as investors this ue to react to disappointing outlook. >> certainly. a disappointing for mattel. too.ro thinks, this is bloomberg. too. this is bloomberg. . >> i'm mark crumpton with bloomberg. has signed ump legislation to avoid another government shutdown and pay for fencing along the u.s. mexican border. it gives the president 55 of board miles fencing, well short of the 200 plus miles he wanted. of measure also keeps part the government from shutting own at midnight, by providing $333 billion to finance several cabinet agencies through september. verbal sparring between president trump and the white house

stocks, certainly thank the fed for the week and my chart of the week is eem, the etf tracking emergingk everybody loves emerging markets right now. i can't tell you the strategists saying the fed is taking a breather the dollar is weak is that a crowded bet? >> i wouldn't say it's crowded you have had the valuation argument there for a long time i think what you probably need to see is dollar weakness. you did see the dollar begin to flirt with the 200 day on the downside but i think it does go back to the fed because if you don't get weak dollar you don't normally see emerging markets really outperforming in a way that's super helpful. >> a weak dollar, also weak dollar if that allows china to fully, you know, go guns blazing with stimulus, right? without risk of the worst currency affects i think that makes sense. >> the fed pause is felt all over the world. >> it is certainly but equally interesting to look at january where we saw markets, of course, take off significantly the u.s. absolutely led the charge there. yes, you saw decent returns globally and in europe it was more like m

good morning,ing day eem?many federal workers have not received back pay or have gotten a fraction of what is owed to them as government agencies, according to original reporting by the ap, they are struggling with payroll glitches, ap made calls to individual who is have not gotten paid and tried to get responses from the federal government and spokesman for the office of management and budget said an overwhelming majority of employees, remember 420,000 people had to work without pay and then another 380,000 were furloughed completely and overwhelmingly majority received pay by january 31st, clearly people that are owed money, hundreds at the census bureau, people who work for aviation administration, same story, they haven't gotten anything or are short. if you collected unemployment, you have to repay those benefits once you are paid also in terms of the pay that they are getting, the court-ordered al alimony and people are struggling how do i make the payments, here is the good news, democrats could back s

eem going to ememploy people -- i'm going to show american corporations how they need to do businesss that cares about their workers, not just about shareholders but stake holder, the workers, the community and everything else that goes along with it, the supply chain. he could be a transformative corporate figure. we want to give him the opportunity to do that. >> nick confessore of the "new york times" is with us. has a question for you. >> obviously amazon had a chance to do that in new york, say we will come in as google has, as apple has in other states and just balanced in your party, i i'm curious if you think there is a particular singular issue that is not being captured in the debate in your party and the current field, a an die that is not being pursued down the center left that is important for your voters to hear in the democratic contest. >> how we're going o get, these communities that have been left behind, the government is broke. we need to have that conversation, too. the government is not working for the american people. the department of commerce is outdated, the