you had morgan stanley cut to an underweight.e lowest was down to a price target of $50 a share. this is bracing for further press the kleins. if you come into my terminal here, we have charted the major performance of these banks over the last six months. you can see wells fargo is turquoise. down here i can point with my mouth in blue. you can see a little bit of an increase here in january. we had earnings coming out with relative outperformance relative to citigroup and goldman. take a look at what is happening. today that is dragging it down. you have only an 8% gain versus some of the other banks that are dropping anywhere from 15% to 30%. vonnie: no one likes handcuffs being put on and say you can't grow, but in a way, this could be a gift for wells fargo. now i can concentrate on that site fix everything else about its operations. might it be a time to get in? taylor: some analysts were saying that the financial burden was not that bad. interestingly enough on the deregulation side because the fed acted so quickly, now yo

earnings growth morgan stanley has a bit of a differing opinion. they talk about, you're going to get good gains through the first quarter. and then all bets are off after that >> you know, the effective tax rate and whether you should be overrated u.s. domestic versus europe is really the call of the day. i say there's nothing wrong owning u.s. stocks and there's lots of opportunity in the mid-cap space to see the change in earnings but to ignore europe, the black rock call, is wrong. make the nestle, let's assume you think the u.s. dollar's bottomed out half these companies have their companies in the united states why wouldn't you want to own them when you have a currency going back up if you have growth if black rock makes a call against europe, they have to make a call. i'm putting every dollar domestic i buy europe as well i want to own nestle and american british tobacco because the earnings momentum is just as interesting as what we have going on in the united states. and their dividends are succulent. >> okay, so then, josh, how do we figu

their forecast to 130 and a high target for morgan stanley. the bond sell-off continues, $258 billion of supply coming on this week and felt in the tenure 2.9% is how we trade in crude and up modestly. david? david: for now what's making headlines, we have kayley here with the first word. kayley: president trump has set aside long-standing differences with former republican presidential candidate mitch romney. the president endorsed his run for a u.s. senate seat in utah. romney has been critical of the president but lens are trying to hold on to their majority in the senate. meanwhile, president trump is open to tightening background checks for gun buyers. the white house said the president talked with republican senator john cornyn about his bill to improve compliance with the background checks. the republicans long proposed bills but is finding a way to curb gun violence after last week's shooting. teresa may's team has a plan to halt brexit payments in the european union back slides on a trade deal. according to those familiar with the mat

last year late in the year the morgan stanley state was disclosed in shares popped higher.ck about $10,000. they have been very early on the bitcoin, crypto train. the ceo said they have an excepting bitcoin as a payment for the e-commerce business. they also have a little bit of an i-banking venture. david: given the problems bitcoin has had, it come way down. shery: 10,000 today. the volatility will be tied to bitcoin? abigail: you are right about that. on one hand and his e-commerce business that some are saying maybe they will sell that offer about $2 billion. than they have this medici ventures. if we hopped to the bloomberg and take a look at 3900, we can see just how right you are. in white we are looking at overstock.com. last year, flatlining with bitcoin. late in the year bitcoin took off. overstock.com took off. and it is almost a proxy or trading vehicle for crypto and bitcoin. bitcoin does look like it have been more upside, let's say 11,000. the technicals are pretty bearish over the longer term. it could really pull back. shery: no wonder we are getting the h

morgan stanley saying the off.ure we have seen is time to look into treasury again. three --uld end around 325 by year end. this is showing you the speculation and if you had to what you can see on the side, we have record wages against the 10 year treasury. we are seeing now is some parent shortt risk, cutting it by just over 59,000. -- could since november. mixed messages over where, but parente names over positions. a >> the president is ready to impose the stiffest tariffs on steel imports according to bloomberg reporting. of course, that would be a move that china. . wanted to take a step back this is china's steel output of the total. you could see that through the mid-90's. 2001 and youin could see that since then it has the kind and since then it has hovered around 48%. 11 president has until april and we will discuss this in other potential terms later. you know what is doing really good? .ech stocks the selloff we saw in early february erased. nyse index and includes things like baidu. they all capture this global behemoth tech stock. that is at a new high.

morgan stanley warning the biggest test of the market is yet to come. unveils newer charges in the russia probe. president trump actively defined this weekend saying friday indictment -- friday's indictment vindicates him. we are already 30 minutes into the u.s. trading session. abigail doolittle is here. an interesting few weeks of our in 2018. abigail: looking at mixed trading action for the major averages. week, the major averages having their best weekly performance in years. with, a bit of a pause investors looking for direction and consolidation here. the dow down .6% at session lows. the nasdaq ever so slightly higher. the dow being weighed on by the shares of walmart. let's look at shares of walmart and home depot. walmart down 9%. the company put up a disappointing fourth-quarter this, theirhind e-commerce efforts with jet.com not doing so well. they don't know the full effects of the tax overhaul. overall, a disappointing quarter for walmart. home depot has been higher, up 2%. they put up a solid quarter. the earnings guidance for the full yea

morgan stanley is buying the yield on the debt.in reflation and rates getting out of control is utilities and the bond proxies. they have underperformed dramatically. technology stocks have outperformed which it makes sense. if you think rates are blowing through 3% on a 10 year, at some point that is going to have a gating factor on the high multiple areas. our downgrade was predicated on semiconductors than the big cap grow stocks. -- gross stocks. francine: windy by the vix? -- when do you buy the vix? mike: we want to be patient. we are not in a rush to buy this particular debt. we said that because first, the volatility that picked up on thursday and friday was a result of the rate move reaching a point where it was having a gating factor. we saw throughout work that was going to create pressure on monday and tuesday. we saw the implications of that overnight on monday was some of those strategies liquidated or moved toward liquidation which caused selling. there is a bit of a regime shift going on p we call it reflation to in

and according to analysts at morgan stanley, companies surveyed said they would only pass 13% of the trump tax cut savings on to workers, in comparison to 43% they will spend on share buybacks. for manufacturers it's even worse. 9% to go to workers, 47% to share buybacks. corporations said they would give komptions the lion's share of the buybacks. trickle down never works and it's not happening now. corporate america is doing what's best for corporate america and working america is getting left behind. it goes to show you just who president trump and republicans were working for when they crafted their tax bill. they gave corporations and the wealthiest americans a huge tax cut and cut out everybody else. i yield the floor.

morgan stanley joins the call. is the goldilocks market really over?anus: president trump proposes budget,rillion federal favoring military spending and a mexican border wall. anna: south africa's ruling anc is said to tell the president to quit after he refuses a request to resign. ♪ welcome to the program, this is "bloomberg daybreak: europe." let's check in on the market action overnight. the msci asia-pacific is trading higher after we saw that strong session and united states. in the past two sessions, the biggest two-day increase in 18 months. 43%.s up 0. japanese markets big weighted down -- being weighed down. are also pointing down, so we need to be aware of that as we go through this morning's session. morgan stanley joining goldman sachs and jpmorgan and advising the dip.he dip -- buy the has been a substantial move, and one of the things in the mix seems to be the prime minister in japan speaking in parliament, talking about how they have a blank slate in choosing the governor of the bank of japan. reports suggested that governor kuroda wou

getting a street high price target at morgan stanley as well.there is one area where we have seen decided not strength. the bloomberg dollar index down 1.9%, setting up for its worst week since april 2016. we have seen rates climb this week. u.s. treasury yield rising to its highest since january 2014. the dollar is not moving in tandem. scarlet: thank you. let's get you to bloomberg first crumpton.with mark mark: a florida judge has ordered the suspect in wednesday's deadly shooting rampage at a high school be held without bond on 17 counts of murder. nikolas cruz is a former student at marjory stoneman douglas high school. the ar-15 was purchased legally. authorities offered no details about a possible motive except to say he had been kicked out of the high school which has 3000 students. attorney general jeff sessions says something dangerous and unhealthy is happening in our country. addressedey general wednesday's school shooting in florida and promised several federal agencies will work together to prevent similar crimes focusing on the in

and according to analysts at morgan stanley, companies surveyed said they would only pass 13% of the trump tax cut savings on to workers, in comparison to 43% they will spend on share buybacks. for manufacturers it's even worse. 9% to go to workers, 47% to share buybacks. corporations said they would give komptions the lion's share of the buybacks. trickle down never works and it's not happening now. corporate america is doing what's best for corporate america and working america is getting left behind. it goes to show you just who president trump and republicans were working for when they crafted their tax bill. they gave corporations and the wealthiest americans a huge tax cut and cut out everybody else. i yield. mr. cornyn: mr. president, today a group led by chairman of the senate judiciary committee, chairman

worker training, equipment, new hires or higher salaries.s or higher according to analysts and morgan stanley company surveyed they will pass over 30% of the trump tax cuts savings on to workers and in comparison to 43% they will spend on share buybacks. for manufacturers it's even worse and 9% to go to workers, 47% to share buybacks. republicans made a conscious decision to give corporations and the wealthiest americans the lion share of the text and promised it woulds trickle down to everyone else. unfortunately trickle-down never works and it's not what is happening now. corporate america is doing what is best for corporate america and working america is getting left behind. it goes to show you just president trump and republicans working forri when they crafted their tax bill. it gave corporations and the wealthiest americans a huge tax cut and cut out everybody else. i yield the floor. >> mr. president, this is immigration week in the united states senate and we are preparing with today's procedural moves to bring bills for for consideration as early as today and perhaps tomorrow at

let's continue the conversation with morgan stanley. have the one holding at the highest level since 2015. if you think about where we were last year, people are expecting a different level than where we are now serious how is this different? about risinghink currencies, it will have some impact in the country's immediate competitiveness. if you go back and see when asian companies were competing against the dollar, it was the strongest growth in history. what isters is happening as a global end and that is booming right now. we just got the numbers today which showed very strong foreign growth. >> when do we see corporate get and increasing rages -- wages? a stopave seen a bit of start, but now we are seeing an recoverynt and it is going on. interestingly, it is also to the extent where post recovery has been there since last quarter of 2016. countries in asia are also beginning to gain confidence. construction is not that strong. of globalte confident growth, particularly because it is backed up globally. >> it is definitely moving. w

so i worked at morgan stanley in recruitment, but i was travelling around the us and canada recruitinggine during a recession, especially when most computer scientists want to work at google or yahoo, it was an uphill battle. but the company, even though there was a recession, you can't cut back on technology and your future technology, so myjob was, i was buying tonnes of nintendo wiis to go on mit's campus to convince people to come and listen to our opportunities, so i was spending $100,000 a month on the company dime, paying it off every month and earning the points. so all of a sudden, my points for myself were just raining from above. and even though during the recession, no bonuses, and you could barely geta raise, points, i was cash poor and points rich. and then you turned that into a business? so now you spend a lot of time and your team that work with you, you spend a lot of time maybe looking at some of the loopholes, the flaws, and actually how to just maximise what the points can do. tell me about that. so i started a blog in 2010 while i was still at morgan stanley, and

with us as well -- of morgan stanley.e want to know what the internal out 5, 6, 7, 8 years does with of the wall of money that continues to change assets, do you assume irr has to come down? klaus: we have seen funds reacting to this. number one, they have set up more low return funds and you have seen this across big asset managers. secondly, it has come down, but all the funds are getting more fundstive we have seems -- where they buy us at in france today and in germany. we have seen funds trying to be nominative and find the right assets. tom: what is the effect of the wall of private money and supposedly information smarter money? what is it doing to the public markets? seen the return of public to privates. for example, if you go to last year, 6 out of 10 in europe, some of you remember starter -- we have seen net a couple of years ago taken private. much lookingpretty for bigger assets and newer opportunities and therefore, the public market is a good target. in zurichriend is today. -- is moving his platform from

i'm sure morgan stanley is going to have okay quarter.l: they pulled back. >> but they pulled back in trade. you know that. i'm sure jamie dimon at chase will have a good quarter. there is something radically wrong with the company. cheryl: din or charlie gasparino, how it should be. thank you, charlie, thank you, sir. as charlie was talking, the market came back 30 points. the power of gaspo. >>> 300-point swing of the day. it's been wild. down 331, down 335 earlier, the s&p in the red, nasdaq was green most of the session. you can't miss the last hour of trading, everything that matters happens during this hour, including the white house press briefing which finally just began a couple of moments ago. there she is, sarah huckabee sanders. we'll keep an eye what she has to say, if anything major happens with the press, we'll let you know. the hands are up and the markets are down. "countdown" is coming right back. . cheryl: a 300-point swing for the dow today. as you can see, we are much lower. at one point down 30. down 336. the dow has

a $78 price target for morgan stanley, the highest on the street. the analysts looking at the push into oncology drugs favorably. finally, bowling up as well, gaining along with airbus after the company said its profits rise on the big order backlog. boeing has a big backlog as well. $421 billion worth. vonnie: the filings are fascinating. we will get to more of them later on. thank you. let's stay on the markets now as we go to equity recovery. joining us is the head of asset allocation at boy investment management. -- boya investment management. it is a sea of green. can we trust this rise in global equities? >> that is a great question because what we are looking for is, is this rally going to be a broad-based rally or a failed rally? it is a little too early to tell, but what we are looking for is very big broad-based industry group precipitation. the reason we think about this is we go back to the selloff we had in 2015 into early 2016, markets fell, there was a big attempted rally late in the year november into december, but it was a failed ra

one analyst at morgan stanley points to a number of areas where they are doing.id the widening gap in the lending margins, that is improving. they have been a conservative around their that. that has not always been the case. and pl is around one point 5% rebate have ratios above the official rate. thesector npl's rates are red bars. that you have the white line, that is consistently below the average. it has about 63% versus the official hundred 50%. it is looking closer. about 16.5% as of september of last year with that is above the other top three banks in china. that of course you have printed you touched on this. in terms of the discount you have in hong kong. it is 22 percent compared to the rise of trade in shanghai there is that opportunity as well. stuff, thank you. we have been talking about construction bank the was ring wendy little back into the conversation. we just heard from tom, is that the best pick? been on top bye merit heexactly on the summarize. i think if there is anything to add, this tends to be a value play, when investors want to add e

morgan stanley on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. the reaction to the firing of comey. evan, what are you finding out? >> well, these are over 100 pages of internal e-mails from inside the fbi. run by a friend of jim comey, had filed a foya to be able to get access to the internal investigations and they showed people frankly stunned at the fact that james comey was fired as he was by president trump. if you remember, the white house, sarah sanders, the president himself, all said that comey was fired because he lost the confidence and support of rank and file agents inside the fbi. the picture we get from these documents is the opposite. one thing we have is a quote from one of the e-mails that was obtai

banks, wellsout fargo, morgan stanley, and crypto plunging as well. why did we see that the klein? -- decline? >> this has a lot to do with their accounting scandal last year. it triggered this, a fear of god penalty. downgrades from analysts, wall street, analyst after analyst trashing the bank and the stock taking a huge hit as you can see in the bigger picture. meanwhile morgan stanley will be are the blue- they chart, they have been outpacing goldmanggest rival -- got to, all the banks under pressure. let's talk about bitcoin, it was a very bad day for bitcoin. a big drop as all rival corns what one as well, and big coin enthusiasts says it has , it is notolic rise a fundamental thing, and it is par for the course. classic risk off as you say, people fleeing for the exits. and energy stocks, the s&p energy index down, the most in today's going back to the summer of 2015, 4.4%. it fell on friday as well, so that was one of the other groups that suffered. talk us through that. >> as you mentioned, the underlying -- you have energy active allocation that happens when they start se

centurylink is having what morgan stanley called a messy fourth quarter.organ stanley still expects that that will help shares in the near-term. looking at mortgage rates, which we are seeing go back higher as we see interest rates on the rise, that is something to watch as we see the treasury rates rise. this is a real-world effects of that on potential homebuyers. mark: thank you. let's check on the markets. the socgen fx strategist, sterling holding above 140. hikexpectations for a rate in may have risen. is it down to the transition? carest what the market about, the details of the transition? kit: to appoint you can narrow it down to say that we have been priced on terrible news for over a year. we have had a little bit of a balance in -- of a bounce. it has not weakened against the euro. we would react well to any good news on the transition where we to get any. we are still waiting. mark: the expectation form a rate hike you think is pretty solid? kit: if it was delayed by couple not make at would big difference. the bigger question is how people th

their losses since the february 9th lows now, we got this great debate between black rock or morgan stanleyhether the february sell-off was a taste for what to come or is tax cut going to help earnings in the big way. >> it was the advertiseradverti, right? >> i have been away in two weeks and my first time back a lot has happened there is sort of a rethink in terms of multiples in light of yield. today we have a situation where we got the 10-yr back approaching 3% and futures are in trouble and walmart is not hurting the situation. it is the whole debate of what you pay for stocks at a time when yield is at 3%. so we are starting to rethink that and the question is where do we come out on the other side of it? >> that's been going on for a while. you both have been gone, he's been working at a different time zone to say the least. last week things calmed down and of course, we had a strong market if you are quite happy with it. we did watch 10-yr's higher, 2.9% it continues to come up and at what point do we see more of a response in the equity markets and similar of what we saw, with thos

she is calling out morgan stanley for the lack of women in recent promotions. goldman sachs is not million trading days in had in the past. number three, italy, super wealthy with a big tax break. kelly.oining us is jason we want to kick it off with calling out morgan stanley. she basically posted a photo, posting 46 names of financial advisors and said, what is missing? jason: it was women. sallie krawcheck clearly wanted -- clearly one of the most well-respected voice is about women in wall street, one of the most senior in wall street when she was that bank of america, builts this platform around women invest in, and the other interesting thing is the forum she used was linkedin. she posted this on linkedin and it engaged huge amount of people and they started talking with some and agreements, some quibbling with her, but the numbers do not lie. there were three out of 46 were women. david: in fairness, morgan stanley said 40% of all people had more promotions. alix: this goes to our point of equal pay. european banks do that. if you have women in lower posi

morgan stanley, andrew sheets says, you know what? that latest pullback is the appetizer, not the main course, a bigger one could happen. several corrections could happen, and here's what he said is driving that action he set this on "halftime report." >> i think the market hasn't had to handle and struggle that trade-off with rising inflation and po templeally weakening growth indicators for a long time >> increases the risk. that's why it's a big debate >> thank you,dom to both of you, welcome. joe, let me begin by asking you, you know, we've had a correction depending on which index you look at we're most of the way back to where we were before the correction morgan stanley says this isn't the big one. what should i do if i think stocks already higher five years from now, should i keep doing what i've been doing, which is putting in money periodically >> you should keep doing what you've been doing if you're a typically investor, which is most of our clients right now the microstory is really good. the individual companies with the

this is according to the survey from morgan stanley. cutting the corporate rate is a gift to investors. they will buy other companies and equipment and on paying back investors. 43% earmarked for stock buy back and dividendividends. that was the criticism. worker cost benefit more as time goes on. investment could lead to more jobs and higher wages. there is no guarantee. clear that investors are the big overall winners. >> the workers need wage growth. bonuses are nice. legit. $1,000. they would rather have wage growth. >> we will see if it is a story of 2018. >>> supreme court justice ruth bader ginsburg says the me too movement will have what she calls staying power. here is what she told poppy harlow at columbia university. >> i don't think there will be a serious backlash. it's too widespread. my concern is that it shouldn't stop with prominent people. it's amazing to me that for the first time women are really listened to because sexual harassment had often been dismissed as well she made it up or she's too thin skinned. so i thin

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morgan stanley >>> tonight the white house is trying to fire rod rosenstein. right now we are joined my our former congressman served as our cnn commentator, dan, the memo has a lot of implications and the content is out there. is there a big revelation here? >> i don't think so. not what i have seen so far. unfortunately, the general culture of congress and particularly the house makes every issue one of a organic wawa gigantic war. everything they are dealing with comes to this giant conflict. unfortunately, of the day of bipartis bipartisan intelligence that people would work together is no longer here. so i am not surprised that this is becoming such a gigantic issue. it is systematic of everything that's happening in congress today. >> let me get carl to weigh in, what do you think? >> this is more than simply about bipartisanship. this is about one party putting forward a fake leaf that enables the president of the united states to exhibit a degree of authoritarian that we have never seen from a president of the united states. the only thing comparable t

hitting its highest level since 2000 on bullish commentary from morgan stanley.little has more. abigail: the stock is really on a tear. they are bullish on the family of switches. the catalyst 9000. very exciting switches. i was on the internet looking at the pictures of those boxes. very exciting stuff. he's very excited because it is helping to drive sales. they have good order volumes bringing into place a more typical product cycle. the more typical story over the years is the transition from hardware into software that has disrupted some product cycles. now we have this strong growth. and on valentine's day they put up a strong quarter with the stock popping in a huge way. this is more positive news and the turnaround is really working out well. it sounds like hardware. can they keep it up and keep going? abigail: that's a great question. they are helping the sales with software and security in the add-on. he is raised the price target to $50 from 45 to 56. the interesting point here, cisco is one of the few stocks that has still not taken out the peak. take

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still with me, met from morgan stanley.e can welcome david riley had of credit strategy at bloomberg asset management, i want to come to you, that push higher we have seen in treasury yields. at what point does that move start to compete for capital elsewhere in high-yield? >> that is the big question. we do actually think the yields will move higher. we have seen a big move taking out some of our duration but we do think we'll be getting to or above the 10 year. then the question becomes when you have cash rates of two and 2.5%, it is 5.526% -- is that enough to be invested in high-yield credit? i think there is a danger that we see from the pricing of credit to clear for that. that does make us a little wary of u.s. high-yield and u.s. credit more generally at this juncture. >> everybody talks about the flattening of the yield curve, there's been a singapore recession but there is actually a behavioral impact and that is what we're talking about, when the fed gets the fund raise up to that 2.5 or 3%, it starts to become r

billion and securities, proving african debt still has plenty of buyers, still with me now, met for morgan stanleyyy, and i am pleased to we welcome from london, head of credit strategy at bloomberg asset-management. is the move starting to compete with capital elsewhere into credit and investment growth in high-yield. that is the big question we are debating as credit investors, we do think that yields will move higher than the fed and it is underpriced. , bute a big move of late we think ultimately we're going to get to 3.5 and above for the tenure and the fed is going to byanother four or five hikes the end of next year, and in the question becomes when you have at two or 2.5%, is 5.5 or 6% enough in u.s. high-yield credit? i think there is a danger that we see some are pricing of credit to clear for that. that makes it a little wary of u.s. high-yield and u.s. credit generally at this juncture. everybody talks about the yield curve as being a signal of recession but there is a behavioral impact when the fed to 2.543%, it up becomes appealing to move into the curve and move into cash, if you ca

. >> morgan stanley, jpmorgan, blackrock issuing performance. >> just last couple of hours we saw theasdaq be just about -- just flattish, now down half a percent. the overall nasdaq was up half a percent and now drifted lower. is that bull/bear debate in the full swing let's look at the calls. you mentioned a handful of the big names, blackrock come out saying basically fiscal stimulus is super charging profit growth expectations and the market isn't fully appreciating all of those growth aspects they're very bullish they upgraded u.s. stocks overall. goldman sachs, in their february note declines note most declines don't involve a bear market and recession usually occurs 6, 12 months from a pullback and to balance things out, have you what happens with morgan stanley. andrew sheets, head of cross-strategy assets, they look at didn't assets in a portfolio construction they say the recent pullback is the appetizer, not even the main course we could see more ahead. they say one if not several 10% pullbacks in 2018 could occur. it's something he addressed. andrew sheets, the cross-asset

morgan stanley is now saying that they put out a bullish call.do you go if inflation like every other year does not materialize is this a market that now is oversold? >> that could be true. we are in an environment where we have not seen inflation for the past nine years. there are really limited signs of inflation. to a lot of investors, that means happily bonds are fairly valued at these levels. whatever happens at the u.s. treasury market is definitely going to drive global bond markets. the big problem is going to be supplied with the u.s. running the budget deficits they are running, we will see another billion.400 that is a lot of supply and the question is who is going to buy the bonds and what we are seeing in treasury options is the bid to cover for the amount of demand decreasing. that will be one thing that causes stress and bond markets over 2008 -- 2018. you are saying that would only happen in china? .> think china and russia we are in a geopolitical war. now, we are in a trade war and a currency role -- work with china. they have a

facebook, gap, google, intel, microsoft, morgan stanley, sales force, offshore drilling? what do you bet those companies don't take out full-page ads supporting offshore drilling? they do come to washington to lobby, but when facebook, google, intel, microsoft, and sales force came to lobby congress through their trade association technet, they didn't even mention climate change. they didn't even make clean energy a priority. instead, they fund the biggest, baddest opponent of climate action and clean energy. why do companies so committed to increasing their own use of renewable energy not lobby congress in favor of renewable energy? it's a battle here, folks. where is the corporate calvary? as long as pro-climate companies do nothing in congress and allow fossil fuel front groups like the chamber to be their voice here in washington, how do they expect to make progress? the chamber of commerce they fund throws around hundreds of millions of dollars on lobbying and elections to ensure that congress won't take the climate action they seek. what are facebook, gap, google, i

morgan stanley says by bonds. xi forever. the chinese party could limit term limits. david: welcome to "bloomberg daybreak." i am david westin right here with alix steele. welcome to fed week. and little italian election -- and a little italian election. alix: the market feels like pretty much by everything. a euro-dollar a little bit stronger. it underperforms most of g10 currencies. market.y the bond 10-year yields moving down by 1.8%. a little softer. david: time for the morning brief. at 8:00 this morning st. louis fed president will be speaking in washington on the u.s. economy. at 9:00, mario draghi speaks to the european parliament. at 10:00, will get the data for new home sales. alix: we will take you through the top three stories. xi forever. also we have a bond bear, bond cold situation. morgan stanley says by. david: to go over it all, we are joined by lisa abramowicz. xiant to go into thisx forever. the committee announced that it proposed -- that is limited the president to two terms. this is in vance of a parliament meeting. -- this is in advance of a pa

morgan stanley's adam schiff predicts more pain for the stock market.ime minister looks ahead to italy's elections, and frederick expects europe's economy to keep expanding, but as for the number of banks, that is a different story. >> long-term, yes. i think we will have those banks. shery: this is bloomberg. ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ >> have you ever been offered a bribe? >> no. never. i have been hinted. i have been hinted. but these are very, very thin ice things. you never know. guy: but there was even a hint. did you report that hint? ilmars: no. guy: why not? ilmars: that is a good question because usually you think, ok, maybe i misunderstood.

there has been rumblings about morgan stanley at times square and they have a couple of different buildingso definitive plans. there are a number of banks that have a big presence here, citigroup is spread out over buildings. you could see more consolidation. dying to know about the decor but that is down the line. thank you to michael moore. fang stocks through the eyes of the futures market. that is next. ♪ ♪ >> you are watching bloomberg markets. time to drive futures where we look into the futures market through the charts and today we look at the fangs, the stocks have been a driver of the volatility up and down. -- .5% ofoughly 21st the nasdaq 100 and a big driver for the markets and it is a matter of sentiments when they tried higher or fall, the broader markets tend to follow on risk on or risk off. fangs doing well today, outperforming. during the two-week stock selloff a few weeks ago, the francine lacqua drop in a big -- the fang stocks drop in a big way and now slightly down from the peak. a lot of volatility for the fang stocks. 6708, a one-year chart of the maryland index -- m

this is the morgan stanley index of cyclicals versus defenses.t is still on the rise, but jpmorgan says keep an eye on it and watch for any signs of it and watch valuations as well. and might be time to close out that trade or at least pull back on it. pulling back today in terms of some of the groups we are watching, we continue to watch the gunmakers. brands are trading lower as president trump meets with governors and the topic of gun control is obviously one that is expected to come up and one that has been much discussed in various states as well as in the capital. the shares have been under pressure on concern that there could be more regulation of guns and therefore potentially lower sales. finally we are looking at lithium stocks as well today. this is following morgan stanley downgraded esculin, which is the middle one here, as well as alamogordo, saying there will be over supplies as lithium target as sqmstart to increase is expected to ramp up mining. a chemical company exposed to lithium as well as also getting caught in that downdraf

we are seeing other big banks sayingth morgan stanley big bank stocks are on sale and a multiplayer affectlower taxes on bank profitability and that should double pe's over the next 12 months. we are watching a resumption in the increase in the bond yield. 2.81%, not a big increase today but just directionally with selling in bonds. the increase we see is not putting a dent in the stock market rally. at least today. given the recent selloff we have seen in the equity market, what is priced in for federal reserve rate increases for the march meeting, that is intact. probability priced in of the next rate hike. nothing to say further this year. probability dropped a little bit but only as low as about an 80% chance of an increase in the march meeting. much likelier than not and it is now at 86% probability. shery: -- vonnie: julie hyman, thank you. shery: major averages are building on gains from yesterday as the s&p 500 coming off its best day in 15 months as investors look past concerns of an overheating economy. they president and portfolio manager of the family of funds, michael cuggino

. >> we are joined by morgan stanley financial advisor jordan steady. we have been on this upward trajectory for a long time now. what the heck happened today? >> it's like going to santa cruz and going up the big dipper. we have been at the top all of 2017 and we hit a downturn today. 1100 points, 1,200 points. it sounds like a lot. in 1987, blackmon we were down 508 points and that was a 22% drop. that would be significant. today, 2.5 on friday, it's not even a 10% correction. >> what is driving the sell- off? it extended from what we saw on friday? >> it has to do with the federal open market committee meeting meeting janet yellen's last meeting. there is going to be three to four increases in the interest rate. that's the amount of money that banks charge each other to borrow. and also what was released is that the wage increases have averaged 2.9%. it scares the market. they are worried about inflation. ironically, today is the first day of the new fed chief, jay powell today. >> welcome to the job. we asked in our open to this broadcast, is this a

morgan stanley ceo came in second.covered by a new material called phantom black. he says the building symbolizes purity, the universe, and a sense of positive opportunity. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: there is a smaller some of that is likely to keep the company afloat. the loss was a bit of a shock, even for a company where we have come to expect all of the negative headlines. the loss was a bit of a shock and it takes the losses billion.to almost $5 a lot of these were write-downs. that is an important factor to bear in mind. having said that, what investors will be focusing on and creditors is a fourth quarter, where from the continuing operations in commodities, trades, and liquefied natural gas, they had a loss of as much as $100 million. the company has also said that it had a negative asset position in the fourth quarter. the restructuring deal that was renegotiated, that is up for grabs at the moment. haidi:

morgan stanley's adam schiff predicts more pain for the stock market.ne -- a former prime minister looks ahead to italy's elections, and frederick expects europe's economy to keep expanding, but as for the number of banks, that is a different story. >> long-term, yes. i think we will have those banks. shery: this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and now, get a $200 prepaid card when you buy an iphone. it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. ♪ >> have you ever been offered a bribe? >> no. never. i have been hinted. i have been hinted. but these are very, very thin ice things. you never know. guy: but there was even a hint. did you report that hint? ilmars: no. guy: why no

morgan stanley wi'm really grateful that usaaq. was able to take care of my family while i was overseas. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today. we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant. [fbi agent] you're a brave man, your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. >>> we're back pete najarian is looking at an entertainment stock. they're betting on it because it's beate

morgan stanley we cut the price of trades to give investors even more value.$4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> all right, we got five minutes before we get started on this trading here on this hump day. lets do a "mad dash" here. fossil 44% of the shares of fossil is so short still one more horrendous figure because these are the guys that could shot shoot stable. i got news for you, they could shoot straight one word defines fossil and that word is wearables. that's what saved the company so immediately what do you do when you think of wearables >> apple get these numbers. people think wearables mean nothing for apples the stock is higher now. get this, they are talking about right now of a $17 billion business 2020, $32 billion. apple is the leader in wearables. >> that's what fossils say about the wearables. if you want to buy apple so badly right into the teeth of this bond sell off that will do with the inventories and higher medical expenses sorry, geico, rise in insurance for cars >> fossil

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he is the chief global strategist and head of emerging markets at morgan stanley.t does listen you say we're in for volatility. what kind of volatility are we talking about here >> well, i think that this bull market is basically the process of forming a top this is the first crack of it. bull markets tend to bei a process, not an event. the trifecta which has been driving global stocks over the last 20 to 18 months, a tailwind is about to turn into a head wind what exactly do i mean >> we started the conversation by saying you're calling for more volatility? >> right. >> i could also make the argument that you're calling this market a top and for it to go down from here. >> well, as i said, not exactly from here, but the process has begun because even in 2000 if you remember we had a lot of back and forth in fact, the s&p in october of 2000 went ahead and almost made a new high then we went back down same thing in even '87 stock market crash, something similar happened yes, i do feel the next 18 to 20 months we are directionally lower. >> directionally lower >> ye