we will talk to the man himself, jeff currie, later on this hour. i want to talk about what is happening in the u.k., take a look at sterling. marcel barnier says a brexit transition is not a given if a decent agreement -- if a disagreement persists. david: he says never mind. now let's turn to our top two stories. jeffrey gun lock is right all along, the: the 10-year -- yield.l on the 10 year and keeping the government open. lisa joining us is abramowicz of bloomberg you have the 200-day moving average with the s&p starting to flirt with that 200-day, and that goes to be correction we have not seen in a while. we bounced off the 200-day twice in 2016. luc, have we found the bottom? >> i am not sure yet. let's check out another chart. we were talking about early in january, world equity index euphoria, right now, looking at my terminal, s&p 500 members are overbought. 0.4%. the shares oversold up to about 1/3. it might be good news of a contrarian indicator, but around these time, the chinese devaluation, we actually peaked at a much higher share ov

reporter: i put that question to jeff curry, the global head of commodities research at goldman sachs your for commodities, the most bullish since the end of the super cycle in 2008. what is behind that, and how does the market in the last few days feet into that? does it change your view at all? guest: absolutely not. you saw base metals and gold trade up as the markets went down. we invented the goldman sachs commodities index, the gsci, for precisely this. you buy at a discount and role of the curve. in other words, it pays you to belong. you have no correlation across assets. we had negative correlation during the selloff in assets. the diversification argument is strong as ever. during the selloff, commodities perform just as advertised. reporter: what about inflation? if we see more rate hikes than expected, how does that play into the commodities? guest: historically when you look at commodities, they perform very well during rate hiking cycles. it is the higher commodity prices that lead to the inflation that forces the hand of the central banks, but on average the gsci is up

alix steel spoke with jeff curry, global head of commodities research at goldman sachs. would argue the fundamental picture is very much intact. what we are seeing on the books represents several different factors. an emhey are more of related asset, traded by that space. they are looking through this noise. i think more importantly, the --kets that have less of the sellers, the etf players, the sfs players are driving this. fundamentally, nothing has changed. the irony is the catalyst for the selloff in the equity market with the inflation print last friday because of strong global economic growth, which is the foundation of our upgrade on commodities last week. x: which fund will provide the best path to inflation if there is a selloff? >> global head, but you have to wait for it. risk.y works if you have 1475, a substantial upgrade. >> let's talk about the fundamentals. this is wti, 1-12 months spread. what is this telling you? we have a saying. time spreads do not lie across every commodity. when the time spreads are tight, like what we see with grant and wti right n