and if this carries on, it will be the global economy that will suffer. author george magnus, from oxford university's china centre, said the breakdown in negotiations could simply be a case of promises being lost in translation. the americans complain, or charge that the chinese have reneged on commitments which they thought had been agreed. which the chinese of course deny. there is a bit of colour on this which i think is interesting for people to hear, which is that historically this is not an uncommon phenomenon in high—level negotiations with china. it happened over the hong kong handover as well with britain, where what you think you have agreed actually turned out at the 11th hour not to have been agreed. sometimes it isa not to have been agreed. sometimes it is a question of being lost in translation, of language, sometimes it isa translation, of language, sometimes it is a question of china actually pulling up the drawbridge at the last minute to achieve negotiating advantage. we don't know really what this is all about, but what the americans w

that has been what is supporting the global economy, and i think that will support the global economy for the next five years. bob: but that is the problem. i, too, would like to see some dispersion of yields between official policy rates. i would like to see the 10-year at 4%. i'm just not going to get it. him this is the reality we are in. what are we supposed to do, sit there and hope for something that will happen for maybe the next decade? i pulled up a chart on money market fund assets. this is the other thing that is alarming to me, not that we are dropping to 2%, but that we may go lower. money market fund assets are 3.1 trillion. they are normally about 2.5 trillion. money is piled up internationally, as james talked about, domestically. it was also simple. the fed would stop raising rates toward the back end of the year and you could invest higher. that is not happening. what do you do now? krishna: you are making the point that i've been making for the previous five years. him in looking for the dispersion, i'm not looking for tim geithner rates being meaningfully higher. i

to india and it went to africa the middle east i guess up to europe moment was aus appears the global economy was dominated by china and india as well it's an anomaly that it had a brief period where america was really the global superpower but now it's going back to the long term trend which would be china india and these countries dominating global economy so yeah like i said five thousand years ago china was the leader in world trade you saw like all these guys get in their boats and go over there and now they're restoring mathur the balun road initiative and china just had their annual belt road big meeting in contact and now a lot of european nations including italy was the first to really say forget you know whatever the u.s. says or nato or anything we're going to do a deal with china because you know our economy of course italy is suffering greatly under the euro so they need flows of capital to come in there because capital is not flowing into italy is flowing into germany and it's flowing into maybe the u.k. or in other places in europe is not flowing into their region so they're lo

and global economies could be headed for. this is what is driving the bond rally again to accelerate, to push yields down quarter. it is not just donald trump and president xi. it is also the e.u. parliamentary elections over the weekend that saw the decline in power for the legacy parties, the rise of populists and nationalists, including nigel farage,'s party is ready to go for a no-deal brexit. his victory may strengthen him to be the next prime minister after theresa may steps down. all of this is the kind of things that really concerned about where the economy is going. take a look at this particular chart, which shows you the yield in, now down to 2.26% m trading at a 19 month low. -- and trading adam 19 month -- a 19 month low. people are now changing their mind. maybe this has gone a bit far. maybe it cannot go much further. it is interesting to see it is not just the u.s. german bunds extended their rally today. worries over not the e.u. elections broadly, but italy. they have a very strong victory in those elections

if we were to have an escalation in trade, the global economy would slow down. it would be negative for the overall economy and u.s. economy. >> so do we buy on this selloff, assuming we get one. the futures could turn around but it doesn't look like it. would you be a buyer on the selloff or is this the beginning of more market to come given that many believe we are priced to perfection? everything has to go well? >> we don't think we're priced to perfect spekt iioperfection this is ugly negotiating if a deal gets done in a week, two weeks, three weeks, we are expecting the best advice today, if you like individual companies, everything is going to get marked down today use the selloffs to buy individual stocks. >> what would you be buying? >> well, look at the market what's going down. google will be down a lot with technology we like ups here cvsl down. everything will be marked down you're getting things at 5% sale if you liked stocks before, cheri pick today we like sales of stores but we don't like sales in the stock market. >> exactly. >> david kats. thank

jerk reaction and believe it's unlikely to happen but the tensions come a difficult time for the global economy and america's punitive measures are taking their toll on iran's economy the currency is at record lows inflation has quadrupled and investors are running scared other trade related pitfalls could also lie ahead china around because the world customer has threatened to ignore u.s. sanctions because terrine is a key ally in its belt and road infrastructure project. joined by helen my investment research analyst at the share center in london a welcome to the show china actually says iran is a part of our belts road initiative we don't change anything india and turkey have made similar noises how effective are the u.s. sanctions if big asian economies ignore them completely well i think you know it's all well and good but china said that they will try and ignore these sanctions but what we have to look at is what actually happened with the iranian oil exports to china and since the beginning of last year exports have fallen so to a certain extent the chinese the the turkish the japanese a

commodity prices have held up quite well of late but the global economy is looking more shaky and theet may not looking as positive as well. you mention the global economy, the outlook of commodity prices and other things, lots of concerns for australians, particularly this new government. what will they tackle first in terms of economic challenges? well, i think more than likely it is going to be steady as she goes, really. i suspect in terms of policy, the impact of policy in helping the economy, i suspect the onus is going to be on the central bank once again, in terms of providing that boost to the broader economy. i think the pressure will be on them to lower interest rates because i suppose in the near term, the government is providing that support to consumers but... and also through infrastructure spending, that is also another positive but is that enough to offset some of the headwinds? we have a housing downturn, the global head went as well. voting has ended in india's mammoth general election and regardless whether the exit post aright suggesting that narendra modi is on c

global economy, who wins?is the impact going to be on the global economy, who winfim what is the impact going to be on the global economy, who wins? it is no good. president trump has a narrative, is that tariffs are good for the united states. tariffs are not good for anybody. nobody wins in a trade war. consumers on both sides will end up paying the higher tariffs, so that's not good for them. you end up with a contraction in the volume of trade between the two countries which will spill over to the rest of asia and the global economy. we will all suffer as a consequence and trade has multiple effects on investment and on business confidence and so on. so it's not good that they should be happening. but it is the reality of a chasm that is opening up really, in the commercial and technological relationships between the two biggest powers in the world. they are going to have to talk again, what will the focus of those talks are likely to be and how difficult might they be? it is still possible. trump, being tr

blame you know i mean you could blame the rich i guess i mean you know when we talk about a a global economy in a global scale i mean it's difficult to quantify who is the rich i mean they're the rich is. you know the united states we have global economies that are so brazil and china they are now major players you know so yeah i mean when you have a number like one percent or five percent of the population consuming fifty percent of the population that that's an amazing number and then you have the rest of the population who are living far below that that standard of living and they're mainly kind of living on the land so to speak you know agricultural agrarian kind of lifestyles and this shouldn't be a surprise that you know from that report you know it talked about three fourths of all land is currently severely altered and degraded and that's because you know there's a need for small scale agricultural subsistence people just trying to grow enough food to survive and so it is there is kind of. equity is not even laying kind of spread across the earth so you can understand it runs out whe

global economy, and other health warning at this time from the imf.rms of rhetoric, both the us and china with the us secretary of state mike pompeo effectively telling us that the boss of huawei was lying about the nature of huawei was lying about the nature of his relationship with the chinese government. it is extraordinary. the uk is caught between a rock and a ha rd uk is caught between a rock and a hard place. the usa you cannot have huawei anywhere in your network or we will cut information sharing we have had since the second world war. they could be substantial loss of investment if huawei will not be involved in the 5g systems in this country. the imf saying everybody is losing from this trade war. the director—general of the world trade 0rganisation says everyone loses, every single country will lose u nless we every single country will lose unless we find a solution to this but no solution seems to be forthcoming. we have been talking forthcoming. we have been talking for such a long time about the trade war, something close to being signe

deals so you know it speaks to the fact that oil is probably going to be less of a component the global economy going forward because it's kind of running out even in saudi arabia they're kind of hitting peak oil so the governments there are diversifying so they're embracing the globalization and to do these deals around the world and so this is why you see these types of initiatives now because they're heading into a post carbon economy i mean when they talk about the fact that it's connecting asia africa and europe this is part of that road initiative but it goes back to the old silk road and there was a book that we read once about something like five thousand years of trade and it's coming full circle so global trade you know before we are. invented these terms in the last few decades of globalization and free trade deals and stuff like that there was a lot of amazing amounts of trade and it all came from china and it went to india and it went to africa the middle east i guess up to europe it was aus of years ago all economy was dominated by china and india itself it's an anomaly that you h

however, on the other side you have the global economy slowing.omic constraint on supply, there is also a constraint on demand two, which could offset the potential on oil prices. let's look at this story on apple. the verge says that apple users, a lot of people around the world, but in the united states this applies to, can actually sue apple for forcing them to pay too much for apps. this story is about has apple been using illegal, unlawful monopoly powers. the core didn't go as far to say that it did, but i think as this proceeds there will be a decision on whether or not apple has been acting ina whether or not apple has been acting in a monopoly. apple said it originally can't have done and its defence was that the uses of the apple store were not apple's customers, it argued that it was my customers, it argued that it was my customers where the developers of the apple apps. 0f customers where the developers of the apple apps. of course, that's not a watertight case, it's allowing — the case to proceed and i think this is one we have to wat

and if this carries on, it will be the global economy that will suffer. bbc news, washington. 0ur china correspondent john sudworth is in beijing. the chinese economy not firing as forcefully as it has been in recent times. just how worried are the authorities about a protracted trade war with america? well, there is no word yet, clive, on what form the threatened chinese retaliation might take. but you are right, i think policymakers here have been deeply rattled by donald trump's trade war, which they see, rightly, i think, as a seismic shift in one of the most important geopolitical relationships of our time. but china knows two things. firstly, you know is that these tariffs are likely to hurt american consumers as much as they hurt chinese producers. taxing chinese made goods like car parts and vacuum cleaners will raise costs for ordinary trump voting americans. as you heard from thejon sopel, the chinese also know that they don't have to worry about an electoral cycle. donald trump does. there is a short window because of shipping time isa short wi

threatens what it calls counter-measures what impact will this have on the global economy also coming up. through says he was tortured in a high security turkish prison. triggered a diplomatic crisis between germany and turkey. and in. refugee and foreign embassies in caracas fearing arrest by the government of president. so-called opposition leader. remains free. hello and welcome. good to have you with us the trade dispute between the u.s. and china is heating up and could have far reaching consequences for the global economy the two sides have been in intense negotiations in washington all week but u.s. treasury secretary steven says his talks with chinese vice premier league are done . today beijing says it will take what it calls necessary counter measures after washington increased tariffs on some two hundred billion dollars of imports from china this international trade war is escalating. and let's go over to our correspondent in washington all of a sonnet one of the trade talks have ended for the day not long after they began what happened. you know those who are brief talks i

really there's not much happening in the global economy as a result of the u.s. trying so called trade war just to put things as finished products of the same holds true for most things exported from the us to china so any tariffs on those products while they might affect price levels in the us or in china and they might affect the level of trade between the us and china they simply don't destroy the global supply chain so the rest of the world is hardly affected at all. it. will not obey the voice of the lord your god will be careful to do all these commandments and. then all these courses shall come upon you and overtake you. and then the people this. point must pretend to let people use they get rid of whites only problems will go away. within. the. people being tortured to death the elderly people in the. company. in the white horse will find themselves. in a. place that will give them a means and greens all sweats and a lot of. what are you going to have for dinner today we don't have a need to be asking for a. civil war in south africa never to. profit from

worth of chinese goods and says there's no rush to make a deal what impact will this have on the global economy also coming up as right hilling company cooper makes his debut on wall street we look into the company's claims that it reduces congestion on the roads of the world's biggest city is. the homeless man in paris with thirty thousand twitter call he doesn't just get lots of likes but action two from the city authorities. hello i'm terry martin good to have you with us. breaking news coming in there's been another tragedy involving refugees from africa in the mediterranean sea it's one of the deadliest incidents so far this year in which migrants were trying to reach europe as many as seventy people are believed to have drowned when their boat sank near the tunisian coast the vessel was in international waters off the town of spock's south of the capital tunis the tunisian defense ministry says the boat had set sail from the libyan port of this awara aiming to reach italy. well for more on this story we're joined now by joel millman he's with the international organization for migration i

it's a standoff that could have far reaching and negative consequences for the global economy at the stroke of midnight washington time the united states increased status on some two hundred billion dollars of imports from china the move comes as the two sides failed to resolve the dispute over trade over the last few hours investors appear to have taken some hot from the fact that the talks are due to start up again today. but this move has unsettled south the once economically does france's finance minister bruno in there says of the stakes in this dispute a high take a listen. resample there is no greater threat to world growth to your standard of living to the standard of living of everyone listening to us than a trade war between china and the united states because it means that trade tariffs will go up if you are goods will circulate around the world won't be able to circulate around french goods as easily around the world and jobs will be destroyed trade will destroy jobs in france and in europe and in this area to europe has to unite to resist it was a brutal man the french m

and china is heating up and could have far reaching into consequences for the global economy president says there's no rush to strike a deal the two sides have been locked in tense negotiations in washington this week but u.s. treasury secretary stephen a new shin says is talks with china's vice premier you they are done for today beijing says it will take what it calls necessary countermeasure after washington increased tariffs on to her. hundred billion dollars of imports from china this trade war is escalating. and let's go over to our correspondent in washington all of us saw that all over the trade talks have ended for the day not long after they began what happened. you know those were brief talks in fact but that did not come as a surprise. the negotiators said even before hand that it would be unlikely that that an agreement would be reached today in spite of that treasury secretary minutiae and talked about constructive talks he then went to the white house together with a group of negotiators to discuss the outcome with the u.s. president who by the way makes a very relaxed a

failed to resolve the differences bridging says it will retaliate what will be the impact on the global economy course coming up the first results from south africa's election showed that the ruling in c. is heading towards the last outcome in its twenty five years in government now ask what's gone wrong with the party of nelson mandela. and dr hayling company who brought the past to make its debut on wall street to speak to over drivers who are struggling to make ends meet and ask if the company's in low wage business model has come to the end of the road. blocks below what he had to rad to get polio but has been caught up in a campaign of misinformation and violence reports on the deadly attacks on vaccination teams aka stop. and does this float your boat it's one of the more unusual exhibit at the sea as the venice billion dollar show a monument to europe's refugee crisis we take a closer look at this and other works at the exhibition. i don't have a woman continue on with that shima it's a standoff that could have far reaching and negative consequences for the global economy at the stroke o

of chinese imports from beijing threatens counter measures so what impact will this hop on the global economy also on the program. some of the seas are calm and the people smugglers are. in the mediterranean some migrants were rescued today but as many as seventy. governments are increasingly restricting the work of the military and the best you can use. in football sunday will decide the champions of the english premier league . leaders manchester city with liverpool trailing by just. the last round of the seas. i'm phil gayle welcome to the program. the trade dispute between the united states and china is heating up and is likely to have far reaching consequences but global economy the two sides have ended talks for the day but they're still negotiating even though president trump has just more than doubled the tariffs on two hundred billion dollars of chinese imports beijing says it will take necessary countermeasures but mr trump says there's no rush to strike a deal. and the u.s. and chinese delegations part ways. talks in washington and that were about agreement after president trumpet

chinese goods and says there is no rush to make a deal what impact will his will this happen on the global economy also coming up south africa's ruling party the a.n.c. is heading for its worst election result in twenty five years of government we ask what's gone wrong with the party of nelson mandela. the homeless spend in paris with thirty thousand twitter followers he doesn't have likes but action from the city authorities as well. as well i'm terry martin welcome to the program we'll have more for you on those stories in just a moment but first some breaking news coming in there's been another tragedy involving refugees from africa in the mediterranean sea it's one of the deadliest incident so far this year in which migrants were trying to reach europe as many as seventy people are feared to a drowned when their boat sank near the tunisian coasts the vessel was in international waters off the town of spock's south of the capital tunis the tunisian defense ministry says the boat had set sail from the libyan port of sue wara aiming to reach italy. well for more on the story we're joined now by j

comments we heard from the director—general of the wto, the effects are being felt in terms of the global economytor sentiment and investor confidence. hasn't been held back as a result of the spread of the trade war between the us and china? very much though. directly a lot of japanese manufacturers in china and of course getting requests of price decline or possibly sell and as you suggest, if we are to see this trade war that would take place in both countries, japan will not be a simple bystander. it will be directly hit which is why one of the reasons why corporations are withholding investment and obviously, it would eventually affect the private consumption side as well, i believe. so certainly i can see a negative loop starting to appear on this. professor seijiro takeshita, thank you. let's go to the us now, where aviation regulators have defended their response to the two boeing 737 crashes in which hundreds of people were killed. the federal aviation administration has been meeting with regulators from around the world to co—ordinate efforts to ensure the 737 max is safe. much of their

a slowdown in the global economy.stent zeal from all international operators watching analyzing this is that trade protectionism, unilateral measures, or having disproportionate impact and this is bad news. , it is basically slowing down the global economy and introducing uncertainty, hence the need to sit down. manus: the unilateral action having the two is international reverberation. we talked about international trade organizations being a forum for discussion, but that does not apply to the world of donald trump. how did they move discussions along? >> they were bilateral, but they also start those discussions. way toed to find a discuss and reach an agreement on the grievances. this is not enough. the world economy is highly integrated. what happens in china has ripple effects in geneva. what happens in the u.s. has ripple effects in africa. all of this has to be inputted in a way. there is a table to input this .iscussion at the global level thes important to reopen channels of communication between the u.s. an

reverse of global trade, it can hurt a lot of economies around the world. s projecting global growth for the world to be at the slowest pace since the global financial crisis and that is with the china deal. do you think it could be as dire as that? jamie: i think the world economy is doing ok. china is that 6.5%, that is $1 trillion of growth. america will look like almost 3%, that is $500 million. it has slowed down but it is still active. the fly in the ointment would be this -- if it goes south, i think that could change global growth. stephen: do you feel like talks are getting a louder voice in the white house, especially here as the risen pushback to the comments coming from donald trump? in that sense, do you hang tough or do you haggle for a less than ideal deal? jamie: i think both sides should do what is in the post -- in their best interest. i think there are serious issues. any to be seriously resolved. i think they made a lot of progress. it is good for both the chinese and the americans. neither side has to do something. i think it is a terrib

of the ongoing negotiations with china and by the way this also has a negative impact on the global economy and so he said look if there is no negotiation if there's no agreement until midnight friday we're going to raise these already existing tariffs to twenty five percent and affecting goods worth two hundred billion dollars and at the moment this is very likely to happen it's probably going to happen what does that mean didn't for china and for the global economy well it doesn't mean anything good when the world's two biggest economies are engaged in a protracted trade conflict if one or both of these economies as he sustained slow down then what you have is a weakened a key market for the rest of the world to exports but of course china will bear the brunt of these negative effects it said it will retaliate but not how it's the problem is that its options are limited and they all have the potential to backfire now it could respond with retaliatory tariffs but china of course exports more than the us so it might not be a big enough threat to leverage alternative turned of lee or additio

blame you know i mean you could blame the rich i guess i mean you know when we talk about the global economy in a global scale i mean it's difficult to quantify who is the rich i mean there are the rich is. you know the united states we have global economies that are kind of so brazil and china they are now major players you know so yeah i mean when you have a number like one percent or five percent of the population consuming fifty percent of the population that that's an amazing number and then you have the rest of the population who are living far below that quality that standard of living and they're mainly kind of living on the land so to speak you know agricultural agrarian kind of lifestyles and this shouldn't be a surprise that you know from that report you know it talked about three fourths of all land is currently severely altered integrated and that's because you know there's a need for small scale agricultural subsistence people just trying to grow enough food to survive and so it is there is kind of. equity is not even laying kind of spread across the earth so you can understand

italy's a major global economy and a great investment destination indorsing the initiative to china's spread reproached investment and will bring no benefits to the italian people but italy disregarded u.s. concerns and went all the way in with the asian infrastructure investment bank as the clash between china and the united states gets bigger it's likely also get messier many international observers have got to be asking themselves how many other nations are going to get caught in the crossfire unfortunately most of these countries the middle part of smaller countries they have all become collateral damage in this mismanagement of overall u.s. china relations and this aggravated trade war they know that they are dependent on board markets countries like the philippines malaysia. indonesia vietnam are not going to pick sides but i'm fearful that the u.s. at this point of time is using every avenue possible to place pressure on china the u.s. is going to be hurt china is going to be hurt if they ship pacific region which is one of the most dynamic economic regions they're all going to

, not global economy sod. hike, aread of a vat we going to see a boost in last-minute purchases to provide support? absolutely, you will get some volatility. you have got to recognize the government has put a lot of fiscal measures into place basically the increased tax will raise 300 trillion -- ¥3 butlion of purchasing power the people -- that is new. from that perspective there would be volatility in the economy but for all intents and purchases, the purchasing power of mr. and mrs. watson of a continues to increase -- watanabe increases nicely. paul: what about what the boj can do? they are running out of power. jesper: you make an important point. the bank of japan is dull. they keep doing what they are doing, there are technical adjustments here and there, but for all intents and purposes, the monetary policy is beholden to fiscal policy. all eyes are on fiscal policy. the bank of japan ultimately will stay stuck until germany wins the world cup. to see theontinue side effects of the boj being so invol

since the financial crisis the gap there as the market grows concerned about a slowdown in the global economy. here is the three-month and the ten-year there keeping an eye on that today and what this means for the global outlook. we'll discuss all that on "street signs. >> thanks. our u.s. colleagues sat down with bill winters. they asked him whether the inverted yield curve signaled a recession was on the horizon >> got the late stage recovery with some totally independent trade wars and other geopolitical issues. you get a little bit of pressure but it's offset by good stuff in terms of consumer confidence it's feeling tired, this long-term recovery, then you have the volatility around the trade war. if this goes the full duration and magnitude, it would be a big impact on the global economy the market feels that. >> we are joined by george saravelos. is there any doubt in your mind this inverted yield curve does signal a recession is that based on the precedence in the past or are there other factors? >> i think the current situation is a difficult one to be expressing confidence in the u

global financial crisis. with a china deal, could be as dire as that? >> the world economy is doing ok. ofna is growing, trillions dollars. america is growing almost a 3%. -- almost at 3%. if this goes south, i think that could change global growth. >> do you feel talks are getting a little bit louder? even here, as there is a bit of a push back to the comments from donald trump. and in that sense, do you hang tough, or do you have a less than ideal deal? >> i think both sides should be do best should be doing what is in their best interest. should be doing what is in their best interest. it is good for both the chinese and the americans. just to get the proper trade deal done. it may take more time, but we should do a proper deal. i would rather not do a deal them to do a bad deal. i think it is a bad idea for america and china. and remember, japan and europe weo had invested interest are not coordinated, but they would like to see a proper deal done and then they can support it. >> can they overcome big differences? a variable timetable, as well as a reversing of the technology transfe

shery: doesn't make sense that we are seeing lower bond yields because of the concern over the global economyith chinese and u.s. data coming in weaker than expected? frank: certainly, if you look at some of the data, you look at isn's, the trend globally. it is slowing. we put uncertainty around trade and what that can mean, that creates a drag. meetingsn their spring dedicated a whole chapter to their concerns about this. we are pleading for the big countries to work things out because there will be a global impact from a growth perspective. paul: what you make of this other story we have been covering? china's treasury holdings declining by 10.4 billion? what do you make of that decline? is it retaliation? is it china trying to shore up the yuan? frank: it is hard to take the one-month, it floats around. in february, china increased their holdings. the month-to-month data can be a little volatile. i think your previous speaker mentioned this. i would agree with selling all of the u.s. treasuries being a very unlikely scenario. when you're in negotiations, you will leverage. this is somethi

the global economy faces a real challenge it confidence is taking a hit. diana, when you think about the hierarchy of vulnerabilities, it is china, then europe. europe and emerging markets. you are running an em fund at the moment. it has been a tough month. what do you do? diana: you pick your stories well, look for places where the domestic story is not exposed to china, markets that have rallied, such as local markets. when everyone talks about em, they talk about the dollar side, which has had a great run to date, but local markets are barely up 2% on the year. that is where you need to look for value, stories were you are not exposed to china. the third point, which was raised just now on the impact of oil prices, what that does to core rates. if there is a supply-side driven shock and growth does not pick up, it is hard to argue that the 10-year will react. the market will be more focused on forward-looking, beyond the supply-side shock, which means we are back to talking about inversion on the curve. henry: it is possible. we had a brief inversion e

grace period on those higher prices working their way through the american economy joining us now is lind >> here or globallyf the big deterrents to what is happening in terms of exports and imports is the world's two biggest economies, the two biggest traders imposing taxes, tariffs on each other's goods and services i think what we can't estimate at the moment is how many deals have been impacted as well investment, of course, is something we don't talk about enough if you were uncertain about whether the u.s. is going to restrict investment and china is going to do the same, that's going to put off businesses thinking about supply chains we won't get an indication of that probably for a little while yet. to me that's another big impact we should be looking at. the final one is how many m&a deals didn't go ahead this year because big multi-nationals were unsure if they would get anti-competition approval by both china and the united states remember, qualcomm steel to buy nxp $55 billion suffered because the chinese withheld permission for that big m&a to me the investment and deals, that's the bigger longe

erlying strength in the services globally, which is keeping the economy going. aware of that. francine: we will get back to tchie ofe and ben ri aberdeen investments. , jp morgan asset management chief global strategist will be joining "daybreak: america." they will also be looking at euro markets. in general, what margins due for some of the big companies coming up shortly. this is bloomberg. ♪ ♪ bloomberg "surveillance," francine lacqua in london. . am tom keene in new york let's get to your first word news. kailey: president trump says there is no sign iran is getting ready to attack america, but warns results will be met with great force. he sent an aircraft carrier and bombers to the persian gulf, and invited them to negotiate a new nuclear degree -- agreement. tariffs anddas say china would be catastrophic, signing an open letter to the president, asking him to reconsider the tariffs. if you made more than $10 million a year in the u.s., your chances of a tax audit have plunged. the audit rate for higher earners fell by half last year. the wealthiest have

cash for the end of last year as investors started to get concerned about the trajectory of the global economyactually for most of last year, was concerned about where the 10-year treasury was going. so investors have had cash. with the fed turning more dovish, with global central banks turning more dovish, they have been more comfortable putting that cash back to work. now this year's rally was very quick and aggressive compared to where we were last year. the impression we get is a lot of institutional investors did not participate. a lot of the flows we saw coming in were from the retail space. so these institutional investors still have cash they are willing to put to work. jonathan: henry. henry: while we are down on yields and spreads are tight, you need to also be cognizant of games being played. the occi deal is one to be pointed at with the financing from buffett, the governance issues. additionally, you are seeing write-downs from kraft heinz. there have been companies that have been relying on low interest cost, low labor costs , taking out cost. and if you do see inflation start to

blame you know i mean you could blame the rich i guess i mean you know when we talk about the global economy in a global scale i mean it's difficult to quantify who is the rich i mean there are the rich is. you know the united states we have global economies that are kind of so brazil and china they are now major players you know so yeah i mean when you have a number like one percent or five percent of the population consuming fifty percent of the population that that's an amazing number and then you have the rest of the population who are living far below that call that standard of living and they're mainly kind of living on the land so to speak you know agricultural agrarian kind of lifestyles and this shouldn't be a surprise that you know from that report you know it talked about three fourths of all land is currently severely altered in degraded and that's because you know there's a need for small scale agricultural subsistence people just trying to grow enough food to survive and so it is there is kind of. equity is not even laying kind of spread across the earth so you can understand i

that is a key part of knowing whether the global economy is stabilizing or not. vonnie: always a pleasure, andrew cinko. check on the markets. the s&p 500 down 2.7%. close to the 2800 mark. apple down more than 6%. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. rates reeling as they selloff strikes. the japanese yen increasingly a safe haven as the trade war between the u.s. and china hits fx. joining us is steven englander. obviously it's been a safe haven, below 1.10 now. where critical from here? steven: it depends on how far this extends. we had seen some fundamental reasons for the yen to appreciate where the end of the year. --hink this particular issue i'm more optimistic they will come to a resolution. i think what you're seeing with the yen and the swiss franc, which has really lagged, they are appreciating strongly today, which tells you the market is going back to its old habits. vonnie: it has been a while since the yen was a place to go. we see the trade into treasuries and gold today, so it is all of the traditional safe