it as a etf. ..e etf, so if they improve it as a etf... exchange traded... etf, so if they improve it as a etf. .. exchange traded... yes. etf, so if they improve it as a etf... exchange traded... yes. if they prove it, you know, in that category, they expect another 300 million to flow in. if they don't prove it, it will probably go down again. i wish i bought some initially. that is what i think. if it falls, you will be glad. and you know, mr branson will accept it if you want to go tour. you could be one of the space tours with bitcoin. let's turn to france. emmanuel matt —— macron, wanting to be people for everyone. i heard him say france is not reform of all, we willjust read d raft not reform of all, we willjust read draft everything, so i thought that was interesting —— reformable. his economic programme lacks specificity. it is like president trump's state of the union address when he put out the ideas and lacked specificity. is it a good idea when campaigning not to be pinned down, but to g

tell me how they are using these etf's. so this is really fascinating to me because you do not see it in the u.s., but the bank of japan has been buying up etf's for years as a way to do qe. people may not know that they have a little twist on it recently and they basically had a few companies provide to them smart beta etf's to their liking. what they wanted to do is create smart beta etf's that screened xd waited on and wages -- cap and wages. to take they mistake of the qb here that got buybacks and dividends, but didn't get which growth and reward companies. this is one of four etf's that the boj buys on a regular basis. this thing has 100 million, but 1.3 billion goes into the funds. it's an interesting evolution of the concept of qe. that is what the bank of japan is doing to achieve of monetary goal. julie: that is indeed really interesting. in terms of smart beta funds focused on, i presume anybody can buy that not just the bank of japan. are there any in the u.s. that investors can buy? eric: it is the alcorn s&p c

there are many momentum etf's that hold stocks, investors can follow momentum at the etf level.at to see you, as always. first of all, remind us what we are talking about when we talk momentum, and why it matters. there are various and it games when they talk about momentum? >> it is counterintuitive, but it works. it is a factor. it explains excess returns. all it is is things going up tend to keep going up longer than people assume is possible. it exists or does people russian to things. they like to buy things when it is up, and sell things -- rush into things p a they like to buy things when it is up, and sell things went it is down. you look at 12 month and three-month return. etf, normally we look at stocks, but you can do it at etf, and we exclude the last month which can include things going on in the headlines that could cause a short-term reversal that not take away from the long-term momentum. that is how we came up with the list. julie: at the top of the list we have a semi conductor etf showing good momentum. is thenumber one semiconductor etf, up 50% in the past ye

let's say there weren't etf's.ds were buying mutual in the 1990's active mutual funds will own the same exact stocks. top holdings are facebook, apple, bank of america, jp morgan -- it literally looks like the s&p 500. you are seeing a shift in formats. people are owning the same stocks but owning etf's because it is cheaper. etf's make up 30% of the trading volume. when you look at the size, they only own 6% of the stocks. stock market went from gingerly dollars in 2008 2 $26 trillion today. 2008 to $26ion in trillion today. what if you want to invest outside the bubble? what etf's are designed to do that? eric: a lot of the money does go into the market cap weighted s&p smart beta was invented for, to invest outside of the bubble. we have 100 value etf's. it hasn't done so hot, but there's many versions of value. val -- you have nothing in the s&p there. you would be set for when the bubble might break. you can go into gold and other things if you think the whole thing will blow up. julie: if there is not a bubbl

the entire etf. take, for example the exam of the ibb, gilead is down 20% over the past 12 months, biogen up 14% t. whole thing is down. how do you defend the etf industry when you can be held hostage to those sorts of effects? >> it's a good comment. jim was talking about the first generation of et frks market indices, you have these massive -- a single name can be as you much as 14% of the portfolio. what i'm talking about is a new generation of product that's now the fourth generation. these are actively managed, so that covenants like a 3% maximum waiting in any one name and multiple tests on the names, themself, they reject high risk nature. that's what's going on here. you can make the argument about first generation etfs that are market cap waited. the eqqs, yes, those are issues, what i'm talking about are brand-new products on the market for as little as 18 months to take away all those risks, so i don't 100% agree with jim on this. >> kevin, good to see you, thank you, kevin o'leary of o sh

are we see never etf's as well?momentum in the search of the smart beta investing value nowtegy earlier on, and looking at momentum strategies. investors using smart beta to try to understand the drivers of their portfolios and using smart beta etf's to compose their portfolio is a key trend we are seeing in the etf space. sawshares last year, we smart beta and half of that went into -- vonnie: fascinating. put that into context for us. what is the overall number and what is the most popular strategy right now? wei: if you look at the macro environment, the inflation seen as back. after the u.s.ad elections, but it had its roots before the u.s. election. that trend took a bit of consolidation because the price moved to quickly. some of the positions looked too crowded. now it is back with a vengeance. a lot of investors are looking ishares.g etf's with including that in europe has been popular as well ly investors are asking about momentum. mark: what new products are in the works and what are investors crying out f

i am looking at another etf not doing very good. the ishares rate -- reit etf.had negative performance. the one-day price change. here is nine straight days of decline. the lowest in many years. there was a lot of hype last year. everyone was so crazy about dividends and all the bond these. excitement that they would get their own category in the s&p. bigle thought it would be a boon for them. they haven't been doing that well. concern, they are on quite a losing streak and starting to catch a lot of people's attention. those bond proxies are not too popular right now. julie: and you see utilities also somewhat -- financials doing well. sort of the classic trade on these bond proxies. that's right. we have the market close coming up next. here are the major averages. we have got a little bit of a rally to end the week. we are setting up for a down week in stock there. dow, s&p, and nasdaq have a small rally in the wake of the jobs report. this is bloomberg. >> we are moments away from the closing bell. what did you miss? thiss closing higher friday. the fed is e

julie: what is in the bitcoin etf? going to expensive etf because of the labor involved in mining these things? know the feeot yet. let's just say it is 50 basis points. your question would be how much would be before a market maker can arbitrage it? premium of 1%t a or 2%, which is better than the over-the-counter market? we do not know. these of the unknowns, but the natural arbitrage that etf allow will keep the premium as close as it deserve to the. that is one of the issues the etf structure brings to this possibility. julie: we will see what happens. eric, thank you so much. vonnie: breaking news --." has joined the list of firms that make generic drug that the department of justice is now scrutinizing. .hose drug makers include acorn ♪ live from bloomberg world headquarters in new york and london, i'm vonnie quinn. mark: and i'm mark barton. this is "bloomberg markets." let's check in on first word news with emma chandra. emma: in the u.s., as president mike pence used his personal n.l. to conduct state business

i did not affect the etfs traded on the other exchanges. nasdaq. and it is unique the etf. the et stands for exchange traded. so coming with that feet sura unique set of risks and responsibilities that ultimately present a burden and a learning curve for investors who have to know how to trade safely. >> and you make the point there are a couple things people need keep in mind in materials of when to trade the etf. the beginning of the day, and toward end of the day. tell me about that. >> absolutely. so following a few simple best practices, investors can all but immunize themselves from some of these risks. so avoid trading etfs near the open. they're a basket of stocks. they take a while the wake up in the morning. they're a bit groggy when they roll out of bed. because it could account for a thousand different individual stocks that will open at different times in the first minutes of trading. also avoid closing near the close. bid and offer spreads tend to widen. pricing can be more volatile. so if you trade near the open or the close, you can avoid these risks. >> of

the utility etf up 5% over the last month, despite expectations that etfs will post lower.d yields fell in february on concerns the trump rally was losing steam, policy reforms may not materialize in the economy until next year. but that's changing. so fed speak started last week. a steady drumbeat of more hawkish commentary from central bankers, culminating in a grand finale speech from fed chair yellen last week. the fed sent the two-year note to its highest level since 2009. investors are rotating out of staples and telecom, making these the biggest laggards so far in march. brian belski noting reits should be sold. those defensive names will come under pressure not only as the if he had likely raises levels next week. a growing number of economists forecasting four hikes here rather than the two that markets had been factoring in just a few weeks ago, scott. >> morgan brennan from the new york stock exchange. >>> our next guest things many of these stocks are so bad, they could be good, carter worth breaks it down for us. >> these obviously are in a market that has not

joining us is eric for etf fridays. he is an adult etf analyst.going to in the -- we are going to get in the spirit of march madness. we always see upsets in the march madness tournament and we have etf upsets her talk about. none of these i have heard of, which is the idea. [laughter] let's start with the first one. seamen is the ticker on this 1 thiseman is the ticker on one. eric: here is why it is interesting. a lot of people have grown to love the inverse etf which is short fix futures up 56%, but this one is up 60% this year. 14% this month. a kind of evolved and gives you use. closer to the shorter end of the curve. the days to expiration on it is 23 days whether exide be is 30 days. vickse basically selling futures on that end. it gives you more juice if it spikes. it is an interesting -- etf -- every etf is a slight evolution on an existing one. is the guy that started it -- this is his latest venture. julie: i think we have time for one more. by oh shares in clinical trial funds -- trackslinical trials companies -- you get a lot of small

looking at etf funds.investment funds around the world a run by women, the rate is unchanged and a decade and and passive- investing is changing it around the edges. we cited that statistic a lot, how one in five investment funds around the world is run by women. >> the rate is 10% out of all the funds managed in the united states that are managed by women as opposed to 40% in singapore and 15% in mexico. the united states has a long way to go. improvegoing to regularly. just because of the number of women in senior positions in the passive industry. scarlet: so it will filter down eventually. along we talk about investing, there is passive investing and active investing. passive investing has been doing well, principally on the lower fees and it is easy to get in and out. it has to do more with the way and timing of the etf. it started in the late 1980's and early 90's come at a time when active investing one -- when active investing was booming. in.n jumped a lot of women who came into the industry in th

it is time for etf friday. abigail: on his etf friday, bloomberg intelligence etf analyst.k, with stocks their all-time highs, strong jobs report, many are calling for correction, including several technical analyst. i know you want to talk about hedging, the years and using some of these etf's is a matter of your poison. what i think about hedging against a long position for stocks, gold, treasuries, what are those looking like and also you're looking at inverse ones. wouldn't that be shorting? >> there are a lot of ways to hedge for stop the first when you mention i cold -- i called naturals. the ones we looked at, if you look at inverse etf's, it is a natural thing. i want to bet on a correction or hedge against a correction, i'm sh come the top when you see there, the inverse as a be 500. it does the opposite of the s&p. you can see the performance at the bottom. it pretty much gives you the opposite during bad days, bad months, and bad years. we tested every and from it. there's double level and triple level inverse. the problems you need to watch out for, because they

i'm looking at the ishares core growth etf. nice snapshot of diversified portfolios are doing. it isn't etf that has allegations to stocks and bonds. theoretically you have a diverse you shouldgations, do well. but lately we've seen stocks and bonds selling off on the same day. the big spike up was the day after president trump's speech. and now lately people forgot about the speech. in the last few days, march 2 was the first -- worst day in a long time, and down again today and yesterday. there seems to be a theme where everything has been selling off. not massive selloffs, but they are diversify -- diversified across asset classes. scarlet: it wasn't moving quite to the same degree. joe: it's just a few days, so you don't want to freak out or anything, but keep an eye on it. u.s. stocks may have piled up 1.5 trillion dollars more in market value this year, but hedge funds are bracing for tough times ahead. managers today have been selling economically sensitive bankshares and materials like copper, according to credit suisse

still, at the end of the day i'm against etfs because they create enormo enormous.an find yourself caught in the stock pushed up or down by one of leverage entities that should have never been approved. you have to accept a lot more risk if you own a stock that's hostage. my final words to the wise about how you stock can be brought down for reasons that have nothing having to do with it's own prospects, except the fact at any given time the rules can change. when the fed raises interest rates, people can payless for stocks than otherwise and become less competitive versus bonds. it been ages since they offered much competition to stocks. if the treasures come, they yield little and corporate may yield little and municipals, we have to be concerned the credit is worth it. think about the billions of dollars lost. watch the debate in states that put pensioners against bondholders. that will be a big story for multiple years and while it may not be worth it for you, others will make the switch when the fed raises interest rates and that could leave your stock in a hea

i think the etfs are a safe vehicle.n mutual funds, but look for alpha and etfs are index oriented. i have to mention, though, margin debt. it is at an all-time high, and it's built up gradually. it's piqued previously concurrent with the piques of the stock market, maybe led a little bit. so that's one of the indicators of this topping process that seems to gradually be forming now. >> all right. any time -- no? >> margin that tends to basically reflect the underlying value of the index, and, in fact, david, it rolls over before the overall market does. >> i think if we're talking about liquidity, we don't turn to etfs because most are very, very widely traded. i mean, sure, there's going to be liquidity issues if we have a quick selloff. that's always the case. what happened last week? i think is just one of those things. >> all right. tom, thanks, david, appreciate it as well. there's another potential risk to the markets looming, maybe a government shutdown. let's get to john harwood with the latest, 33 days to go, j

etf. we'll go inside that sell-off straight ahead. >>> and unplugged, new electronics ban going into effect on certain international flights. what you need to know about the big changes. a busy two hours of "power lunch" starts right now. >> all three major indexes taking a big hit. first intra-day drop of more than 1% for the s&p 500 in 64 days. that happened earlier today. that kind of call market has not gone back happening to all the way back to the 1960s. nasdaq, intra-day high at the open. it has now pulled back also more than 1%. melissa said it, financials feeling the most pain. beyond yields moving as well. small caps are have thing the russell of all. russell 2000 down the most of all the major indexes. tyler? >>> i'm tyler mathisen. second day of confirmation hearings under way for president trump's supreme court pick, neil gorsuch. preet bharara will join nyu law as a distinguished scholar in residence, he was fired as the u.s. attorney for the southern district of manhattan ea

that is how we get people to invest insiders, etfs. people are investing in vanguard etfs.s. investing in different technology stocks, apple, ogle, microsoft. that is how they learn from experice. liz: you like aaa, apple, amazon and alphabet which of course you said is google. what is number three? >> thirst one is basically do what you know. we find that our members are investing in private equity because they know private equity. that is the category they're most comfortable with. so they're investing in businesses they have grown up in. we've seen that people have invested now 21% in private equity, up from 10% only eight years ago. liz: a little tougher for the retail investor to invest in private equity though? >> but people have the ability to invest in what they know even through etfs as we've seen. liz: pe, etfs. >> that's right. liz: barbara goodstein, tiger 21. [closing bell rings] the markets definitely get an honorable mention. the dow is down eight straight days. s&p tried to claw back. nasdaq sees a positive after being down more than 50. david and melissa. m

versusail etf in white purple, the etf attracts the s&p 500.g up since the election, since the beginning of the year. this is a ratio on the bottom. tells us the retail sector is trailing the s&p 500 the biggest of 2009, the end beginning of 2010. >> thank you. >> a new report may strengthen president trump's and as he tries to secure $1 trillion for infrastructure projects. the quality of u.s. infrastructure gets a great of be plus. additional $2 trillion is needed to raise standards. now, mark writes about infrastructure, all parts of a focus on infrastructure week. this report here does seem like and mr. trump has painted the infrastructure as being .truggling what does the report at onto what we know about the country? >> this report comes out every four years, a survey of 16 different infrastructure sectors and comes up with an overall grade in this shows we have not made him -- enough progress. some improvement in some sectors, some declines in others. just shows a need to do more to invest in infrastructure. an estimate of what the need

you can see the etf itself is doing well. it's the only proxy to play the global airline industry. >> so, it's called jets. >> just jets. it's smart beta, recalibrates every quarter based on the five factors most important cash flow and investor capital. >> people writing in. the impact of the south africa events on overall gold supply? >> i think the whole world is witnessing a shrinking supply of gold. it's extremely expensive to explore now. it's difficult to get new palestimines into production but paper money continues to grow faster than you can get new supply coming in. the grades are very low. so i think that the balance for the supply/demand factor is more bullish for gold in the next ten years. you'll see a gradual increase. >> excellent. frank, thank you for coming in with us. coming straight from the airport. you look very el ganegant for airport travel. >> thank you. >> what shoes are you wearing? nike? trainers? >> no, nike bought cole han, and the bottom is for running, the top is that does go back to last for

the retail etf having a good day as well. is the worst over?erhouse of the week, a former home of a baseball legend. we'll tell you who it is, where it is, and show you around when "power lunch" returns. field of dreams. with e*trade you see things your way. ♪ ♪ you have access to the right information at the right moment. ♪ ♪ and when you filt out the noise, it's easy to turn your visn into action. ♪ ♪ it's your trade. e*trade. start trading today at etrade.com but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimi2% cash back on all of my puhasing. and th unlimited 2ca back fromompark means thousands of dollars each year going back into my busess... which ds fuel to my bottom . what's in your wallet? >>> hi, everybody. i'm sue herera. 23 people were taken to the hospital following a leak. employees were evacuated and the leak has been stopped. officials believe the building will be safe again by this afternoon. british police from scotland yard observing a moment of s

then we saw the vanguard etf up 12%.et etfs had significant in flows as well going into them. what had outflows? well, high yield had outflows. hyg we talk about that all the time, jnk had outflows all the time. we talk about that significantly. people were pulling money out of that through most of the quarter here. where do we go, what does this mean? and what's the sentiment right now? here's the summary, the awway i look at it. confidence is very, very high. that's the most important thing that's happened throughout the whole quarter. we have optimism on the economy. we have optimism on earnings. we have optimism on the trump agenda and what is going to matter now going forward for q2, 3 and 4 is the interplay between those three parts. earnings, 10% up on the first quarter and that's whole -- that's very, very important. a big factor on why the market has been moving up. yes, the economy sentiment is fantastic. consumer sentiment is through the roof but the hard economic datas are fair. 1.8% gdp. that's fair. not nec

decision to reject the etf proposal that has since the bitcoin prices down 18%. a lot of has in this amend the market about whether or not we bitcoin other etf related offerings in the works decision.this sec let's check in on the first word headlines from around the world. formerld trump's national security adviser michael flynn a knowledge to that he worked as a foreign agent representing the interests of the turkish government during the election campaign last year. this according to a report by the "new york times." a turkished by american businessman with links in and kara. the white house says president trump did not know. invitedt trump has mahmoud abbas to washington. he stressed his attempts for a peace process between israelis and palestinians. ansays he is committed to establishment of a caliphate city and state alongside israel. prime minister narendra modi has secured his place as india's most influential leader in more than three decades after his party won a majority in hr pradesh.-- uttar tos victory allows the bjp push forward its reform agenda.

etfs including e e eafe.etfs like i-shares saw significant outflows, about a billion dollars. that's about 6% of the assets under management. hyg, by the way, ten years old on april 4 th. what's going on? this is all about confidence. confidence on three levels. number one, on the economy consumer confidence at the highest level since 2000. skeptics note the higher economic numbers have not seen the big jump this quarter. sentiment indicators have seen the jump. q-1 earnings tracking up 10%, the best showing in near ly six years and confidence on the trump agenda of lower taxes, infrastructure spending and fewer regulations. the rest of the year will be between those three factors. can the flows continue? how much is due to the trump agenda? how much the surge and low cost etfs and investing in general. it's clear they can influence fund flows. the third week of march, the first negative week since the election for flows. that was the week the house failed on its obamacare repeal bill. very clear trump agenda

about the your trade today is on xlk, the technology etf.hink that one might see upside action if people were betting on economic recovery to continue, etc. kevin: what is great about the xlk is it has had an awesome year so far. of 9.2% on the year. a while the run. volatility -- wild run. volatility is completely compressed. 10.3 earlier in the morning when i saw that. up $53 right now. someone did a straddle -- they struggle that 53 level and what they did is they bought the 53 call in the monthly for april and a 53 put, hoping that even if the volatility picks up to the normal level, where the market levels are, this should make money. this is a great way -- you can make unlimited profits. you are protecting yourself all the way on the downside, all the way to the upside. the most you can lose is the premium you spend, about $1.40. as the market was hired you will completely participate. if it goes down, you are protected. cheaper than the market. julie: you make money when the stock moves. you need to take it into consideration. typical

energy, etf, great risk reward buying energy right here. i think it can go higher, much higher. >> listen, untils have lagged. the biggest reason is, people got scared that maybe the trump agenda wouldn't go as quickly. >> the yield curve. >> that will be my second point, no question about it. it all plays hand-in-hand. the yield coach starts to become flattened as it became apparent to some people that maybe president ump was not going to push his agenda through. it's all that risk reward identifying the food trade. we talked about it last night a little bit. yesterday, goldman sacks traded down to 220 t. same level in the middle of 2015. you have a very defined trade i financials using gold man sax as you pay, using 220 as the low, i got to tell you, gold pap reports april 17th, i think, benign tape, goldman rallies into earnings, potential to make new highs. >> if you believe financials pick up in the second quarter, then? >> do. >> will it be the second quarter? >> i'm not sure which factor will be rolled. wherever they roll out of. i'l

spider health care etf up around 76 bucks or so.e 72 strike in june, they are aggressively buying puts at that level. the 72 strike. you can see they have bought nearly 18,000 of those puts. a lot of them in really big blocks, swept across all of the exchanges. so we bought puts. i'll probably be in these a month or longer, judge. they're obviously looking for perhaps a little rollover in this etf. >> or are they looking for protection after this huge run on the xlv. scott, when you look at these names, and we've talked about it for the last couple days. ever since january 31st, take a look at what the xlv has done. why not protect basically where it is right now. >> yep, $3 deductible puts, more or less. >> pete, what do you have? >> i'm going to go to the financials, an etf, as well. i'm looking at the xlf, scott. earlier today, it looked promising than it does right now. i'm not worried about that. what i liked about this trade, we talked about xlf march 25 call-buying just a couple weeks ago. they're taking those off today. 22,5

interesting to watch the set ofn of etfs and tremendous -- traditional mutual funds.e: thank you to heidi richardson of blackrock. more bloomberg markets next. this is bloomberg. ♪ vonnie: a little cloudy in new york. this is midtown manhattan. we are live at bloomberg world headquarters. i am vonnie quinn. this is bloomberg markets. here is mark crumpton. president trump is in the debate over drug pricing. he promised to lower the cost of medicine for americans. esther trump said he is working on a new system where they will be competition in the drug industry. are undernies pressure to reduce prices. supportingnell is the house bill to unravel the affordable care act, arguing the law cannot be repaired and must be replaced. senator mcconnell said the legislation is backed by the one person who signed it into law, president trump. it would limit future federal funding for medicaid, which covers low income people and for medicalare insura u.s. backed syrian and kurdish targets. said turkey also discussing plans to recapture islamic state. george michael died of natura

the trading of the etf to all markets.ut it would have created a regular stock exchange proxy for this currency in the way there proxies for other currencies and gold and so on. caroline: we will see how it pans out. that was a cory johnson shedding light. the largest u.s. jobs figure delivered a surprise beard 250 5000 jobs were added last month in the united states. the unemployment rate fell to 4.7%. games that -- gains come from construction and manufacturing. many are wondering if the momentum will keep up, especially in the tech sector with growing reforms on the h-1b visa. from new york, jake shorts and my guest host, david kirkpatrick. thank you for joining me. it is hard when you go into payroll on the bloomberg, it is hard to show an illumination appeared jobs are pretty flat. jake, give us where you think technology is in terms of demand and supply. we are seeing a massive secular increase in the demand for people with tech skills. that has been going on for a while and is continuing at a very healthy pace. i th

there is only one etf being traded right now. be an international market maker as we can say, so there are intentions, many signals that they are just percent thing more products and more options for investors to come and put their money into the uae. yeah, certainly, david here in hong kong. let's take a step back. there is another product investors have access to it the moment, some argument as well on what sort of levels that we see get exacerbated. what i want to ask you is what were the highlights of the first trading session as we count down to the open up markets there? >> as you mentioned, liquidity is an issue here, especially the uae market at the moment. of trade onw day sunday. average far them of trading in dubai and abu dhabi was around 50% of its average. to see is that most of the trade was done was small and midsize caps. we don't see a a lot of trading with the blue chips recently. don't is a day when we see a lot of foreign investors in the market here. starting today we should see at pickup, but a slow start.

very large issuers, the bonds make it into these funds and etf's. are a lot more buyers, so the yield is very low. the bonds that don't make it into and etf or large mutual isd are a band, so it bifurcated. 300 extraget 200 or points of yield and some of these smaller names and that's where we see the value in this market. aware -- how rare are these names? jeff: not very rare at all. there's probably $400 billion worth of these bonds not in .hese indices or large funds there are quite a few of these. they don't trade every day. they are not in these daily liquidity funds, but for investors who can take a little less liquidity and more volatility, there is extra yield to be had. that's probably the best area we are seeing right now. vonnie: in retail, you are short some names. for retail that amazon is going to gobble up the space? jeff: basically, yes. they've shown weaker earnings. companies showing bad numbers in this environment, people are very concerned about these countries that -- these companies being able to service their debt. distrust bo

a high-yield etf. this represents price.e that high-yield over the last year has been rallying. the risk on rally supported by high yields, but the uptrend is starting to reverse in this range. just recently, starting to get down. there could be some safety sought by investors soon in the form of treasuries. too soon to say. vonnie: thank you. happening right now on capitol hill, two house committees are holding meetings on the repeal and replacement of the affordable care act. the house energy committee and the house ways and means committee. these meetings come with opposition from democrats growing and opposition from those in the republican party itself. you can follow all the debates by running the function dtv . this is bloomberg. ♪ mark: live from london and new york, i am mark barton. vonnie: i am vonnie quinn. this is the european close on "bloomberg markets." we now have the republican plan to replace obamacare and two of the biggest questions it raises, what will it do to health care, and what will it do to th

you have to use the etf to track the futures. the performance of the physical gold you can buy versus the etf. the bottom line is the difference which most people are quoting. it's important to see that difference in investment. >> gold future to crude oil future ratio as well. all the way back to 1983. the dotted line is 26. i take it that's a historical average. >> the historical averages close to the 15 year low. they could equal one ounce of gold. that is a paradigm shift. declining in 2015, janet yellen said it was transitory. it is staying lower and low versus gold. i think we can explain it more of a. i'm shift that crude oil is an example of technology. gold is the opposite. thus, the price creates higher. >> one thing that is often a , the relationship correlation of if they move together. what are the cross assets going to be. >> win oil spikes because there is an issue in the middle east, equities go down and risk is off. when oil goes down, it has issues with credit. the equity market has been going down with it. risk

bullish bets on oil fund etf i should say. uso seeing two times calls to puts.ov foolish option bets. what does the "options action" market know? >> i this i the "options action" market knows that maybe this crude mark that crude oil is back down to $40. maybe we put in a short-term bottom. maybe there is a bounce? i got to tell you something, conoco philips pete najerian flagged it earlier this week. they have be swishy, nay might have found ground. i mentioned to tesoro on "fast money" an hour or so ago, i think tso gets $80. if you think oil is on its way back to $55, you play the levered names like a petroleum apc. >> one of the things i would point out is that when you are talking about refiners. one of the big things that happened when basically we saw brent trade over west texas, is that we have a flut of crude in cushing. mid-content refiners were able to benefit from. that now we are seeing the pipeline project. it looks like that will go through. where is that delivering crude from alberta? so that's the illinois refiners, refiners around cushing, okla

watch that particular etf right after. overreaction, they get this thing down to a 4% yield. >> how come no one said visa, am ex -- >> we've been in love with these names for year. am ex and goldman are some of the about -- -- two of the top former are those two stocks. >> how about cme where the rate trade takes place? >> you want to avoid utilities, avoid the high-yielding stocks. >>> we'll be right back. >> shares of adidas, hitting aber an all-time today after giving ambitious guidance. a buy rating on the stock. upped the price target moments ago. erin, nice to talk to you today. >> thanks for having me on. >> is this your top name right now in the space or no? >> yes. this is one of our two top names. it's adidas and coach. we continue to like this brand behind the athletic space. >> speak directly to adidas. why allow like it so much? >> a couple of things underpinning growth here. you have resurging brand momentum. it's not just about the retro sneakers you're seeing right now. they've done a tremendous amount of i

we take a look at how much of an etf inflow we have seen compared to previous years.ound records, we have all of these inflows into etf. can you have a meaningful pullback with that kind of inflow? it is an interesting question. when we talk a lot about -- when we talk a lot about the lack of volatility and correlation, it does not matter with etf flows. jon: our guest joins us. oliver renick joins us as well. great to have you on the show. into utilities, what is the story there? >> most of it is flowing primarily from fixed and him come -- fixed income into utilities. you see rates rising. we are in a low interest rate environment, and you need to deliver yields somehow. jon: what is the signal. stocks and bonds rally, utilities, too. what is the signal that comes from a price action from a week like that? bruneau: with that -- markets are fairly fully priced. are trying tokets find a trend when it comes to utilities. the yield is what is winning for them. >> there is a function i love on the bloomberg to get an idea where money is going. i am looking at etf go and

keep in mind though this is still more hands-on than black rock's well-known etf business.ome say it is a middle ground between active and passive investing. one thing is clear however. black rock may be the first to try this, but others likely will follow. j.p. morgan said in a note today, quote, industry wide, these changes could cat lyse greater active equity fee competition should black rock's initiatives be successful, in an asset class that heretofore has avoided fee compression. the analysts added other larger assess managers will imitate black rock's moves, putting pressure on smaller managers. guys. >> all right, leslie. stay right there. we will talk more about this. bring in someone that knows something about using artificial intelligence for investors. dan nadler, the cofounder and ceo of kinsho which searches for correlation between world events and impact on asset parents. we should know the parent company is a minority investor and we use it all the time and our newsroom. what do you make of this new? the largest active money manager in the land starting to u

people have made tons of money on this etf. over 1000% since 2011.t it yesterday and at least for the very brief moment it was the top of the trade. scarlet: people who listen to do you yesterday when out and bought -- joe: i don't make recommendations. scarlet: that's why we don't. the u.k.'s says it will trigger article 50 on march 29. gdp is holding up. one thing that has been consistent is pressure on the pound. this is a 12-month chart of cable, pound versus the dollar. this is the average monthly rate of the pair. 142.xchange rate was about after the vote, the pound was 7.5% weaker. it stayed around those levels the next two months, and then you have this big drop in october. now in march we're looking at an average monthly weight of 120 to 70, the lowest in more than 30 years. joe: kind of amazing could after the vote, everyone knew what was going to happen, but it kept going lower with each of these developments here it is each of these development straight scarlet: we looked at it for so long and it really hasn't been that bad but if you are

>> i believe that we create etfs and very diversified baskets. they're three of the top holdings in our quality dividend growth etf. they just represent the characteristics, high profitability. theret warren buffett type factors that people look at as a factor that can grow dividends over tichlt because they're very profitable, they have that potential to grow that dividend faster over time. so there are three largest holdings that we use. >> sometimes a big juicy fat dividend can signal that the underlying stock is not healthy. how do you avoid getting trapped in a situation where the company may cut the dividend or have the stock price just collapse? >> that's absolutely why i advocate for broad diversified basket. the risk of any single stock, yes, they can cut the dividend. you look at the market as a whole, there are few times when the market's dividends have fallen more than a few percent. it's been five years in the last 60 years where it fell. the financial crisis in '08 and 'o 9. certainly that was a big part. energy last year. the energ

when it comes to the credit market, a couple of etf track debt. this looks at a high-yield etf in blue and an investment one in white. the high-yield one is in white, the investment one is in blueprint whatever the case, we have seen them take a turn downward, both of them. he says this could reflect less than a risk for credit markets. we are seeing risk aversion or least caution in equities as well. he's calling these the two canaries in the credit coal mine. keeping in mind on these in the weeks to come and the fed meeting on wednesday. we also got the latest announcement from the s&p about who is going to be in and out of the s&p 500. we have watched the fallout from that. urban outfitters is going out. the moment is unchanged, although earlier it had been trading lower. we have been seeing a negative reaction there. on the more positive side, we are seeing more of a reaction in advanced micro devices than real estate. overall, more of a detriment to than apanies exiting benefit for those entering the index. mark: scotland heading for another

standard life is to purchase aberdeen asset management as the etf industry drives fees lower and lower. howdy will because cuts have to be to make these businesses competitive? matt: we are less than 30 minutes away from the european open and take a look at futures, down across the board. you saw u.s. markets down as well, the cash trade there, asian stocks as well. european futures are following suit. i think more interesting is the bund trade right now, maybe it is a rebound. we saw such a huge spike in yields on friday, up to 0.356%. but now yields are coming back down and investors are getting back into european debt, 0.343% on the bunds. guy: let's take you to the gmm. i want to focus on the second column. i want to show you the japanese yen. it is up this morning. this is because of what is happening in north korea and there is a safe haven bid there. there is the yen, it is up. but the euro is down against the dollar by 0.2%. this follows friday and what janet yellen said and the fact that march is almost a done deal. people are focusing on the dollar. it is a recently quiet ses

that spyder bank etf also on track to hit a nine-month low. certainly, financials a big part of the focus. we'll have that and much or the market downturn here on "squawk alley." we'll be right back. ole wheelie. ole wheelie. wh do you mean? ts baby to get around the plt fl righ bowe technology ole wheelie. mo e mhine.ean? ts baby ye, it brings mae amou ofnfmat. soou doneethat. ll, makes. right into theuture. .bar. yore goikwards. future's a around us not justn yo littl tabletmyrid. medica options until you'rsiy-fe eligibity?u may thyocan t ofcher ke in mindmecay versboutng. eightycent at'sherearp meresulent insurancs su unitedhealthce rance company co in. all standardizemeca suppmenturan plans, ving youn out-of-pocketmedical . rance company co in. at's wt m tgoongg.g fferce later. e way reak a call nnd requests decisisiuide. rpicare sule planson mecarend thege of tohoose from b on your needs andget. alankeseet you oo atoor spal thaacceptdire roll along with yossexperience n pats,anthere aretwork keepg yoon coue. so cl now and d scov a aarpica

lots of people own etfs. >>> a u.s.ederal judge rejected a bid by leon cooperman to dismiss the s.e.c.'s insider trading case against him and his firm omega advisers. the judge said the s.e.c. made a claim that cooperman and omega made about $4 million from the sales of atlas. the trial date has been set for november. >>> goldman sachs is building a robo adviser aimed at given ing investment advice. this comes as goldman looks for ways to broaden customer base beyond the wealthy. >>> walmart is launching an investment arm to expand its e-commerce business the plan is led by walmart's e-commerce chief mark lorey, who joined from jet.com. the venture called store number eight will work with start-ups that specialize in robotics, virtual and augmented reality and ai. walmart says it will keep the start ups separate so they don't affected the bottom line in the short-term. >>> softbank has dropped 1$100 million investment in a smartphone startup that competes with the iphone according to the "wall street journal." softbank

etfs brought in $8.6 billion. >>> snap inc.ing a roar on the floor of the new york stock exchange for their first trading day yesterday. landon dowdy has more. >> snap opening at $17 a share and closing at 24.48 a share, a 44% rise. the offering of 200 million shares brings the firm's market cap to $34 billion, making it more valuable than twitte eter ferrari and best buy. snap's ipo is one of the largest debuts in recent years. it has a vast audience of 158 million daily users. but there are notable concerns. the firm has lost money every year since 2011 and said it may never be profitable. last year posting a net loss of more than $500 million as it spent heavily on marketing and data storage. the challenge going forward is to find ways to boost the advertising business quickly and ramp up revenue per user. shares up 1.5% in early trading. back over to you. >> thank you very much for that. >>> spotify has reached a new milestone with more than 50 million paid subscriber,s that's up 25% in less than six months, and extends the

etf. go inside that sell-off straight ahead. >>> and unplugged, new electronics ban going into effect on certain international flights. what you need to know about the big changes. a busy two hours of "power lunch" starts right now.

obviously the health care etf has done quite well but everything's done quite well year to date. i'm really struck by right now the almost complete detachment from a lot of noise, lack of transparency in washington and the markets aren't trading on it. >> maybe part of it look at it from another way when mcconnell says up or down no matter what, that that's actually a good thing, that it doesn't matter if tax reform falls -- if health care falls apart flat on its face in the house or in the senate, tax reform will still happen and that's what the markets are -- >> yeah, if you get a corporation tax cut the way people have been talking about. you're going to get the same freedom caucus, the same people in the house less than the senate who are saying we're not going to count instance any nonrevenue neutral tax reform. it's wishful thinking to go, we'll just deal with this health care thing, you know, a third of spending and then if that doesn't pass we'll deal with the other massive thing which is tax reform. i don't believe and this is where i'm more with dan, i don't believe mar

that's what i'm really trying to go target as pullback in the etf. >> when you're looking at something like xlu. it's not like this thing is going to gap down by 10% or 15% which is one of the reasons why selling the downside put makes sense and the $0.20 will decay more rapidly as a percentage of the value than the at the money put spread and i think that makes a lot of sense. the move if there is one won't be that pronounced. >> the levels that dan said are exactly right. you return to a prior intermediate high and you consolidate what it's been doing, but all of us has to think, my gosh, with the states and the sentiment and the temper and tone of the rate environment and what's coming how is it possible that banks are not exploding. the banks peaked relative to the market on december 8thth. banks have broken on an absolute basis and underperforming the market, that's three months. utilities act well and staples acts well. there's something not quite squaring off with what appears to be a lock. they will raise rates. maybe it's a -- >> maybe they are reflecting the long end of the c

i have a list called the top 10 etf's cash and center raiders. always on the number five currently. it has taken $5 billion in cash over 10 years, but only has 5 million to show for it. the reason it burns through cash is that cost can be upwards of 40%, and that's why the x x, , this thing -- vxx is down. julie: is there any way to avoid the cost? >> another product called unl which tracks all twelve-month futures of the same time, but you don't get the same sensitivity when the spot price moves. it is a tough egg to crack. julie: thank you so much. mark: the presidential candidate, the right-wing presidential candidate, the republican presidential candidate, has been charged with misuse of public funds. more on that. this is bloomberg. ♪ ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car.

rishaad: very quickly, and light of the plan's to have it coin etf's, that has been rejected.in ising the becoming more acceptable as an asset class could has that made any difference to that? >> far from it. it is much more acceptable now. bitcoin etfthat the was not approved by the sec. it's all about decentralization. announcement,t the price dropped for two days, all time up to almost record highs. -- expecte except more acceptance of bitcoin in blockchain technology. the big story, blockchain technology, and how it is disrupting industries, in particular the financial services industry. you.ad: great talking to we have a look at what's going on with cathay pacific coming up as the stock opens in hong kong with the carrier likely to purse -- posted's worst results in eight years. details on the way. ♪ rishaad: we are counting down to the start of the trading day in hong kong and china. free market, cathay pacific has not moved. the big story, heading for its biggest loss in eight years, the biggest losses the global financial crisis. the three years the chief executive has

that is the performance of the etf.eason it is interesting is this etf is a diversified sort of portfolio allocation that has a mixture of stocks and bonds. having its worst day since the beginning of the year. you have to go back to december for a worse day for a when you look at the overall measure of the equity losses, you are like, it is not really that bad. nothing compared to the gain we saw yesterday. today's characterizes everything is selling off -- stocks, treasuries, commodities, silver, gold, oil, emerging markets, corporate bonds. it is all down, and we are having a diversified portfolio, it is the worst day of the year. scarlet: contest yesterday when the etf went up. market closes next. take a look at the major averages pulling back from yesterday's record highs. this is bloomberg. ♪ scarlet: we are moments away from the closing bell. what did you miss? the day after the biggest advance of the year. i am scarlet fu. joe: i am joe weisenthal. if you are tuning in life on twitter, we want to welcome you to