still with us is omar aguilar of charles schwab and bloomberg's luke kawa. omar, we know that nobody knows what will happen on trade tonight or on friday or at any point, but how big of a component was trade and the optimism of the deal to the market rally we have seen this year, which is still pretty extraordinary? let's so that things go pear-shaped, there is no deal, it all falls apart, how much would we be erasing? omar: great question. the two things that drove a lot of the market rally so far this year, one was optimism about a potential trade deal. the second one was the risk of monetary policy. those things, if you think about the last two weeks, have changed. the market seems to be in a different position, and the fed seems very clear about the math. thinkingt seems to be there will be a rate cut at some time this year. that divergence, we will see what happens in the next few weeks. at the same time, the trade deal is another component that was an issue into the end of last year, with optimism going into today. so you think about the current sellof

emily: dana hull, luke kawa for bloomberg. we will keep following. the u.s. defense department faces new pressure from congress over president trump's proposed space force. the pentagon asked for $72 million in initial funding for the program. lawmakers say they need more information about why the new service is necessary. military leaders testified to the senate about a potential space force. the hearing may have only fueled skepticism, however, among lawmakers. coming up, microsoft's cloud business is on the rise, but can it hold its own against market leader amazon? we will hear from microsoft's top clad leader next. and you can listen to bloomberg at bloomberg.com, the bloomberg app and in the u.s. on sirius xm. this is bloomberg. ♪ emily: next week, over 6000 developers will go to seattle for microsoft's veiled conference, where we get a first look at the latest development tools and cloud services. ahead of that conference, they are announcing new services to create the next generation of so-called intelligent cloud. the cloud is becoming a primary driv

phil of jpwith us, morgan asset management and bloomberg's luke kawa. phil, you are saying something about this transition mechanism from trade war to the real economy. people want to quantify. not very big. you see stockmarket vale -- stock market volatility that may be associated with trade, it could end up that it is confidence. phil: i was thinking about that as well. when you think about the pullback in may, it has to do the fact that a -- that it was priced in and you have to price it out. if you go back to the second and third quarter of last year, when trade started to flareup, we had a 4% gdp number in the second quarter, three-plus percent in the third quarter. you put up another really good gdp number and that is when it becomes a political issue again. how far as the administration going to push the political issue? is it going to leak into economics? tom at the richmond fed saying that the danger is the u.s. can talk itself into a recession. i think that aligns perfectly with what phil is talking about. caroline: how it hits margins of comp

still with us right now is yana barton of eaton vance, and bloomberg's luke kawa. , when you look at the volume, how much are you paying attention to that? , we opened was also the week essentially smack dab in the middle of the 50-day and the 200-day, and we could have gone either way. we traveled to the 200 day pretty fast, and it seems conviction is pretty low, and selling doesn't seem to be panic-driven or emotional at all. but one element that leapt out, 10-year yields down three days in a row, utilities down three days in a row. if you are ditching bond proxies to go to bonds, i suspect the motivation is similar, probably means the general view on equities is getting sour even as we rebound. talk about i want to the timeframe of investments, --ause- you said you18 because you said you encourage clients to look 12 to 18 months out. are you in this market at all? what would it take for you to get in? yana: thank you for the question. as active equity growth manager our job is not to time the market or even asset allocated. we are fully invested. but depending on

scarlet: doug ramsey joining us from minneapolis and bloomberg's luke kawa. we have results from take two. shares were halted before the release of these results. fourth-quarter earnings topped analyst estimates. the revenue trailed. analysts were looking for $508 million. the outlook for the full year is a big mess. -- miss. $4.84.s were looking for caroline: in their overall statement, they are saying on april 1, 2018, the company adopted revenue for contracts, significantly changing how the company recognizes the revenue and net income. it doesn't impact net booking. scarlet: let's see what happens when the stock resumes trading. it is halted for after hours trading. that does it for the closing bell. romaine bostick is stepping in next to continue our coverage of the selloff. this is bloomberg. ♪ caroline: this is special coverage of the u.s. market selloff. i'm caroline hyde in new york. romaine: i'm romaine bostick. joe: i'm joe weisenthal. caroline: president trump said he will speak with xi next month, while warning beijing against retaliation. time t

we are joined by gina martin adams and luke kawa. let's go to that china trade talk. i will put a chart appear of one way to look at this, stocks that are exposed to china the most, both developed and otherwise. this shows it down substantially. to what extent did the market get ahead of itself with the china trade deal? gina: predominantly it was really about monetary policy. you did see liquidity shift dramatically. china exposed stocks on the s&p 500, there is no evidence to say trade was the most powerful driver of returns so far this year. when we look across the landscape, the companies that have the most revenue exposure to china are still trading at a discount relative to their five-year averages. nonetheless, these stocks did perform in line with the markets, so it is not like we were punishing the companies that were trade exposed in the s&p 500. it hasn't been the drag it was in 2018. that leaves this group somewhat .ulnerable we saw that play out over the last couple of days. luke: i don't think it is a surprise. we have a playbook for this. yesterday was

kawa. krosby, luke that does it for the closing bell. ♪ ♪ ♪ live from bloomberg world headquarters in new york caroline hyde. romaine: i am romaine bostick. joe: i am joe weisenthal. caroline: it seems the fed didn't ease quite like the market wanted. joe: the question is, what'd you miss? caroline: does inflation tell the full story? fire up the grill. inond meet -- meat soars its debut, but can it satisfy investor appetites? and off to the races, the triple crown kicking off with the kentucky derby next weekend. this hour.ts later romaine: a quick check on some notable earnings movers after the bell. the company reporting the growth margins expanded a bit, beating on first quarter net sales and eps. caroline: is this the best stock? joe: if you look at a chart, compared to apple and netflix, they are these little straight lines. caroline: phenomenal. meanwhile, shake shack doing pretty well. clearly the demand is still there for beef. arista: they sell -- networks, they sell a lot of cloud equipment. down about 60%, the biggest mover after hours right now after what looks like a pretty big m