>> i don't know if we look about the postelection gains.ors have notice what's going on in washington. we're talking about tax reform, but not the tax reform a lot of people voted in. to unwind a 77,000 page tax code would take a long time. the last time we did it with the reagan administration, took four years to negotiate. now we step back from the revenue neutral plan. forgot to water it down, get a capital gains cut in the corporate tax rate. train to the feeling of raw that the market is overvalued because they are baking in tax reform and health care. what about another key factor which is a fad and reducing their position on the balance sheet. >> it's an issue. look him in the still has a lot of clout. the fact that they are unwinding are talking about unwinding the balance sheet is weighing on markets as well because we don't know what the timetable is for that. they talk about the end of the year. a lot of welfare from the fed earlier in the year will start walking it back and they already do it because yesterday fisher came up and

. >> in april of 2011, at the height of the postelection troubles, anti-french protests state, four peopleere kidnapped, including two french nationals, the hotel the ceo of the biggest agricultural industry of the country. after six years, the outcome of the trial is a relief for the families, even though some details remain a mystery. >> we will never know why they wanted to take them. why they were tortured, killed, and where the parties were discarded. that's where the bodies were discarded but we do know someone was responsible and justice has prevailed. justice has the power to appease pain. >> the investigation found that the poor captives were taken to the presidential -- four captives were taken to the president trump palace where they were beaten. the death of the other three victims were established because of witnesses. >> an update of the headlines. the united states dropped an 11 ton bomb in afghanistan, the largest nonnuclear explosive device to target a tunnel network of the islamic state group. turkey gears up for a historic referendum, voters will decide whether to replac

there was a postelection bounce where expectations got ahead of themselves. were talking to people in washington, they were telling us that we should not expect anything before august or september on taxes. people were getting all worked up on it happening in april. if you were either stupid or naive if you wanted to believe that. number two, the flattening of the yield curve have also heard the financial specifically. areas helped some other but it has heard a big chunk of the market. you were talking earlier about thegy, prices pulling back energy stocks. people were kind of layering that into the economic call. to bring inant something that larry fink had said earlier about the importance of earnings. >> bernanke season is probably the most important issue for the markets today. the marketplace had higher expectations on quick actions out of our government related to andreform, infrastructure, the regulation. those are the three things that the marketplace looks for. that will take obviously more time. if we do not have earnings validated, we could adjust

was it really about earnings or about the inflation trade postelection, sort of losing momentum when0 year yield failed to accelerate beyond 2.3%? that is a big question. i'm not sure. when you seen in earning estimates, not really a lot of caution in earnings. since march 1, the estimate hasn't moved much. what has moved is the 10 year treasury yield. this is not a trait about earnings as much as what is happening in the broad macro. oliver: to bring it all back around, when you look at the financials in the expectations game that you been outlining, you look at the contribution to the market overall which is one of the biggest sectors, can this bump that we have had from november survive without banks? >> it's a good question. in the broad scheme of things, can the market go higher when banks are falling? very unlikely. can they go higher with banks trailing the market? yes. that is an experience we've experienced throughout the cycle. financials don't happily the market higher am a but they do have to participate because they are such a big portion. on that note, watch tech. from

here we are now with what you describe, the trump effect in the u.s., postelection and what's going ton here in europe. private equity has been very good in the past at adapting to change. frankly, i think we have to step up to the plate. we have to -- i think we have to have a degree of caution and thoughtfulness relative to where we should be investing, but the opportunities will be there. but the challenges will be even greater in this environment. jason: you mentioned the trump effect, how much is that bleeding over into europe in terms of dealmaking? roberto: i think we are more focused than europe. we are more focused with what's happening with brexit. that is just beginning to sh its effect. the elections in germany and the elections in france are being watched very carefully. the focus for those of us in europe is primarily europe. we do acquire companies that are global. they may be headquartered in europe but be heavily in the u.s. one has to keep an eye on both sides. first and foremost, we are looking in our backyard. perhaps we are taking more cautious views until we see t

postelection, the fed has to incorporate some form of regulation tax reform fiscal the talk of a morefed and balance sheet reduction. we are now in a kind of air pocket here. we were hoping to hear on the reflation site has not come through yet. i think the minute we get some kind of detail, some kind of headline announcement, no matter how big or small it is, i think we just need something. i think that will give the fed the green light to get the next hike going. my point here is i think the fed knows it is a little bit behind the curve, in terms of credible policy. pre-election, it was happy to be behind the curve. postelection with fiscal policy in the offing, it is uncomfortable being behind the curve, and we will want to get at least to the curve, if not ahead. what that means for dots, i'm not entirely sure. for me, certainly, two more, possibly three more hikes this year, assuming president trump delivers something. guy: bob will stick around. bob janjuah, senior adviser at nomura. we will be doing that. up next on the european market open, we will talk to tom akzonobel.e ceo

precious metals have been bouncing, this is a postelection chart. now they are back to unchanged since the election. as we've seen more buying of things like gold on concerns or risk aversion surrounding geopolitical events. at the same time, industrial metals are coming back down to being almost unchanged since the election as there are concerns about things like an oversupply of iron, for example. and also, copper, where their supply increases as report mcnamara got the go-ahead to restart production in a factory in indonesia. all of these pressuring industrial metals. as's take a look at arconic well. the stock was up yesterday on client filled exeter, it's rented a little lower. the day now down to 40%. jpmorgan says it perhaps was good news that elliott and client filled departed. the stock is up year today, so positively test positivity from jpmorgan. oliver: julie hyman, thanks. scarlet: there seems to be more cracks appearing in the trump in wayne,rospects funds focused on muni bonds receiving a $1.6 million infusion of cash last week. the f

international monetary fund raised its global growth outlook to three point 5%, citing a postelection surge in u.s. confidence and prospect in emerging markets. needunds were that up about saudi arabia's prospects, lowering its forecast by a percentage point. frank andcio of templin. >> with the big cuts in november, that has way down on growth expectations. all we care about, we see actually is an acceleration in the growth and economy. >> let me ask you a more existential question. ofseems like we have a lot people in the market who are very positive on saudi arabia and yet we have these issues surrounding the economy slowing economic growth. people squaring that tension. a >> the approaches on the markets they have to be select if. saudi arabia is undergoing a period of gray transformation with government policy and driving the response in different sectors very differently. has become very selective and sectors that are being under looked and enforced by government policy that can unlock their potential. there are areas suffering from higher levees and those are areas that are mor

it has raised its outlook for global growth setting up a postelection surge in u.s. confidence.al trade. usll the director telling earlier on daybreak australia's that risks do still remain. >> it is a difficult environment still. the baseline which is this area know -- scenario that we think is most likely to play out is one of recovery. it is but just by strong economic data, we saw at the end of last year and beginning of this year. of course, we have seen many threats to these prospects. you just listed some of them. i would be happy to elaborate on them. no better time than now. why don't you elaborate on them now? >> clearly the are worried about increasing pressures, inward looking policies that had emerged in various parts of advanced economies. clearly brexit is one manifestation of those precious. we are not having this except brexit which actually happened. we are not having them in the baseline because at the moment we do not see them as the most likely outcome. shouldconcerned that, there be not just political pressures but also actions on that front, that would not

there amazingly kind of, a huge spike postelection for whatever you think of our current president. the small businesses stepped in and said we are enthusiastic. however, they have not stepped up and actually started doing anything terms of employment. you know really dialing out or doing any kind of investment spending. so they are optimistic but it is not with real force behind optimism. i think if we are really expecting to get this economy moving and make america great again, the president is going to have to figure out how he is going to do that. and he has to get the tax rates and bring semi into some of those businesses. >> you have to offset this with getting rid of taxpayers. that is always the hardest thing. everyone is always happy to cut tax rates but they can never figure how to pay for it. >> dos, i'm not someone who's in washington d.c. but if it occurs to me that it has to get done. and if there is a deficit i would have to, my conservative birds are not showing it at this moment. i think we have to do it and i think will have to figure out how to absorb some of that

. ♪ the international monetary fund has raised its outlook for global growth to citing a year postelection in confidence, better prospects in emerging markets, and an uptick in global trade. the deputy director there told bloomberg earlier that risks remain. >> it is a difficult environment still. baseline, which is the scenario we think is most likely to play out is one of recovery, and it is buttressed by strong economic data from the end of last year and earlier this year. of course there are many threats prospects, and you have just listed some of them, and i would be happy to elaborate on them as you see fit. than now it time why don't you elaborate on them now. aboutarly we are worried increasing pressure towards in the policies that have emerged in various parts in advanced economies that are inward looking. the realization of brexit is one manifestation of those havinges, but we are not except for brexit, we are not theng them in our baseline coast the moment we don't see them as the most likely outcome, but are concerned that should not just political pressure, but also actions on

much of the runup in the dollar occurred postelection on what was called the reflation bet.s it something that the president should be thinking about or is this a free market, let the currency go where it may as it relates to the rest of the world's economy? >> certainly you laid out all of the costs and benefits. at this stage of the game, the federal reserve would rather have a stable dollar than a rising dollar. a falling dlar would, as you noted cause more inflation and that is smk that tomething that wants to avoid. that is what could happen if you had a rapid movement. it could be really bad news in terms of rising prices. it is a tough balance. i think it is something that the fed takes into account when they're doing monetary policy. when you have elected officials talk about where something should be for where it is market or gented, many thought it belongs to them, and every time they have done it and medaled in these markets, we have seen more reflection. >> you offered it in very simple terms to us. did it surprise you that he likes low interest rates and janet y

i think the postelection, pre-inauguration moves were perhaps excessive. i mentioned the rising confidence perhaps not being matched by enough hard data, and it seems to be coming off the board a little bit. i think the equity market is the one that hasn't. anna: that's what we heard yesterday from bob dole, talking yesterday about how sentiment in the u.s. is one of the biggest threats to the u.s. story. sentiment in the u.s. economy has become so high, it leaves investors vulnerable. >> indeed. and it's not as if the markets are cheap by any measure. also seasonally, this is coming up for a tricky time. april, may, then the traditional summer slump.i wouldn't be chasing equities . manus: we were looking at the flow of money, and we have this graphic for you about the flow of money. this always beckons the question whether it's you and me that are left at the end. investors pulled $133 billion into passes, managed exchange created funds in the first quarter. that is almost double the previous record we have seen. are we just late to the party on this? wha

come on, we want to know what happened here, we have bits and pieces of what happened, this is postelectioni think it might've been after christmas. >> finally a source tells us what happened and basically it resulted in us finding out that she was really frustrated by what had happened in michigan during the primary. she was angry at her aides, she was telling them our message isn't resonating, what's happening. these are the moments that make this book what it is. it's a real book about what happened, told through the people inside the campaign. i think that kind of moment shines in this book and this is what we aimed to do. >> your turn, truth or dare. >> i want to know what you think is the hardest part of reporting up this book. >> i think getting people in clinton's orbit to talk about anything is possible, and if i was to chalk up my proudest accomplishments as a reporter, it's like breaking into the circle and getting people to tell us stuff because this is, especially in this campaign, a group that was not leaking a lot, not talking a lot and afraid of repercussions of having leaks

in answer that question, how is the ecb preparing for postelection turmoil, the answer is potentiallyt all. >> yes. the information that we are essentially getting from the ecb is that there is no specific plan at this stage on how to deal with a potential le pen victory. if you talk to people in and around the ecb you get a clear message that, in fact, anyone expecting mario draghi to dissent with a firehose that is able to put out any massive fire caused by the election of marine le pen in france, should think again. simply flipot just a switch and call markets -- calm markets after such a shake. nejra: mark, is this because the likelihood of marine le pen actually being elected after the second round is pretty low or is it simply that this is just not the sort of situation the ecb prepares for? this is a different situation to the greek state. >> i think that your second idea is the right one. the ecb is a technical institution with political backing. once you have france electing an the-eu, anti-euro president legitimacy of that action on behalf of the eurozone -- there is a funda

think the volatility will pick up and anybody that thinks they missed out on the big trump rally postelectionnk you get a better buying opportunity to buy back at similar levels. >> dan, lots of focus on europe at the beginning of this week. are we focused enough on asia? china's market zrnt a good week last week and there are rumblings this week over chinese leadership's not being happy about trump's action on steel imports. china might retaliate against u.s. financials and tech companies. could that be a problem? >> i think that's one of the things that could add a lot of -- add a lot to the short-term volatilities in the market but not a key driver. the good thing about these geopolitical risks getting through them and past them is to focus back more on the fundamentals and where right now going into the busy week of season. >> it's amazing to see the vix sort of collapse in the face of essentially a veiled threat of the north koreans to take out an aircraft carrier today. is the market just jaded? >> i just think it's really hard to price it in from a portfolio management standpoint soy t

but struggling internally to unite around a message, because one of the leading voices in their postelection repair isn't even a member of the party. it is senator bernie sanders, they self-described independent, democratic socialist who is long complained the system is rigged. >> i think what's clear to anyone who looks at where the democratic party today is, that their model of the democratic party is failing. clearly the democratic party has got to change, and in my view, what's got to become is a grassroots party, a party which makes decisions from the bottom up. stick with the new dnc chair, tom perez, has been on a road show with sanders to show the so-called establishment sympathizes with sanders' supporters. talk about a new platform this weekend was derailed by a dirty word. >> he called it a skinny budget. i call it something else that begins with s. my mama taught me you shouldn't do potty talk but i hope you don't mind because this is a [bleep] budget. >> not uncommon for parties to have internal trouble but it's unclear how a four letter word helps democrats win four more years.

at the same time companies really at this point, we saw that trump rally, that postelection rally.there was a little bit after stall when there was concern. do you agree this is more politics and things are going better for the trump administration and the markets? or do you think the fact basically companies are more optimistic about the global economy general and about t consumer in general? >> i think all of the above, actually. i think he has higher approval ratings for the president makes it more likely he can exert influence on congress and get the agenda moving forward, which right now is kind of a question mark as you indicated earlier. let's not discount the importance of china coming out with better growth results than expected. remember, much of last year we were watching china's deceleration and wondering how it would impact global growth. today we had the opposite. good news out of china. i frankly think it is short-lived because a lot is debt fueled and not particularly sustainable. at least that is a pretty big push to the global economy. i think actually a lot of th

-- maybe slash stamp duty postelection?they should cut stamp duty because the receipts are down by 40%. from that perception, i think they should. it is an unpopular thing to do at the moment, and i think it will take a while longer. but it will happen. mark: bloomberg surveillance continues. guy johnson joins here, with tom keene in new york. ♪ chieflay's says he will not judge on ward quarter of performance. the american banks outperform. ms -- its wealth anagement. republicans do not have the votes for trump care. the president has a key decision. should he golf or not golf on day 100. into the weekend and onto the french, the german and the british election. macron and le pen. i'm tom keene. guy johnson in london holding for down for francine. what is the theme, and are you looking to paris and france? guy: the last half hour has been about the u.k. the credit impulse is fading. it's going to be something that is going to be fascinating to see with the markets do and react how much is priced in. more data coming through

is this just more sour grapes in a postelection hangover? or is the goal to delegitimize the president into rail his agenda? >> donald trump, you do not stand for our values! donald trump, you did not win this election! donald trump, the friends you have input in, not going to do you any good! we will resist 's why you drink . with 9 grams of protein and 26 vitamins and minerals. 's why you drink . ! ...what you love. ensure. always be you. ♪ >> welcome back on the fly monday, president trump is now saying that the united states is prepared to attack alone with the nuclear program if china will not take a tougher stance. of the president's comments are coming ahead of the meeting with the chinese leader. trump told the financial times, china has a great influence over north korea. if they will either decide to help the u.s., or they will not. and if they do that, it will be very good for china. and if they don't, it will not be good for anyone. if china is not going to involve with north korea, we will. in that interview he said that the tra

>> postelection rates rose quite a bit and nav's felt quite a bit.holders reacted in a negative way and we saw a redemption out of the uni asset class in general postelection. a couple months after, blows really start to stabilize and they come back in a positive way over the past month. relativest the overall valuation to communities, relative to fixed income. it is compelling to anyone paying any sort of taxes. people are cognizant of the fact that the asset classes are high-quality in the sectors involved in 10,000 different issues in the market. i think there is a degree of comfort in terms of where the relative valuations are with muni's growth. >> how much of this is indications that they don't quite believe the tax cuts will be as big or as long as we thought they might be? >> as it relates to potential tax reform and personal income tax levels and corporate income tax levels, our view at goldman sachs asset management is that we would need a very significant reduction in tax rates to really move the needle from a demand perspective. where we

could this be another side that the postelection trade is losing steam? this is bloomberg.sts time now world news. the u.s. army says that one person is dead and another injured following explosions at missouri city. the plant manufactures small munitions and operates the test center for nato. say a person was wounded after a bus was carrying soccer players to a game. the scheduled game has been postponed until wednesday. the club says there is no danger in and around the stadium. eight members of extremist cells have been arrested in connection with last week's deadly bombing on the subway in st. petersburg, russia. that is according to the intelligence chief. the suicide bombing killed 13 passengers and injured dozens of others. no one has claimed responsibility by the bombing but russian trains and planes have long been targeted by islamists militants. president trump welcome more than a dozen ceos to the white house again today for further discussions on financial strategy and policy reform. speaking to members of the strategic counsel, the president outlined the admini

the postelection environment, incredible enthusiasm about fiscal stimulus and economic growth.pside. now you see a skepticism perhaps unwarranted. through it all there is a solid global picture and nothing has changed. now there is an opportunity for markets to catch back up and continue with good things all around. mark: exactly right. think the global economic picture is very strong and uptickout of asia, a big in chinese growth from where we were looking at a year ago. globally it is very good. the u.s. have this premium that was unjustified. the u.s. is not the big driver of the global reflation story. it is the u.s. reflation story you should doubt, not the global reflation story. it will not drive it on its own. i do not think the u.s. equities will roar ahead. aboutre no longer worried the downside because they will move up in line with everything else. the best opportunities in the world are still outside the u.s.. joe: that was my interview, former fx trader who writes for bloomberg. this is bloomberg. ♪ scarlet: "what'd you miss?" modest losses for u.s. stocks friday.

banks managed to capitalize on the postelection rally?pportunity to hit the bluefly. ask a question to chris wheeler about banks as earning season kicks off. ♪ ♪ guy: stock market open for 40 minutes. let's talk stocks with nejra cehic. nejra: i'm looking at one of the biggest movers on the stoxx 600. shares hitting a record high and also gaining the most since august, the most since the spinoff of the hygiene business was announced. the reason we are seeing this after reports that private equity firms have made a unit.r that hygiene that spinoff being announced a few months ago, up seven point dent -- 7.2%. elsewhere, quite a lot of readership interest and bigger moves earlier. sundeck so shares were initially shares down 0.5 -- 0.05%. first-half net did come in at a bit of a miss. it said the first half fiscal 2017 was in line with a view that the french market could improve next year. the ceo saying the company continues to look at acquisitions and finally, carrefour is one of the big stocks. the french business has under for formed so

julie there was talking about some of these postelection reflation moves that we saw fading. high in early march and they have been doing nothing since then. what will break us out of this ?ery quiet slumber us market goodink you will get very first quarter earnings. and they were really good. more back up to operating margin at the s&p 500 of 9.2%. that is with the major sector. energy very depressed. there have only been a handful of quarters that have been higher than that. i think it will be stronger in the first quarter. i think a stronger earnings, the technical position is very strong. virtually every important bellwether group and sector and index probably other than the utility stocks join the s&p 500 at the latest high. we just don't see any signs of the traditional distribution that normally accompanies an important bull market top. distribution that process has even started. >> we have a chart from goldman sachs pointing out that negative earnings revisions in 2017 are really impressive. earnings so far, they always get revised down throughout the year. is this re

you look at earnings, better than expected, american companies in a large part justifying the postelection rally that we've seen here so far. as you know the last couple weeks, people betting the market will go down, concerns about the president's economic agenda. that is getting traction again. big announcement on the tax plan, but the earnings justifying how far, how fast we've come and looks like with the dow, i'm sorry, the nasdaq at 6,000 here, we're looking at new highs. back to you. trish: you know what i like about this, mercedes schlapp, i like the fact that this is now, for a change, based on fundamentals. in other words, earnings are strong. this is not a sugar high from janet yellen and company. it's not as though the fed is printing money and we all feel good and thus the market is getting driven higher. this is about substantive economic policy that the market anticipates will come forward, and the reality that earnings are looking better. this bodes well, i would think for 100 days in office? >> absolutely. two parts to this. one, obviously, seeing small businesses as well a

the question, how does one bridge the pre-election rhetoric with the postelection reality.ald trump is bridging that rhetoric which was against china come into -- china, into a friendship. he says he has forged a friendship with the chinese president, how do you react to that and what you expect from the meeting? relationthink the between the u.s. and china is probably one of the most important bilateral relations in the world. the shape and nature of this relation will shape the trajectory of our geopolitical world in the years to come. wayway i am pleased -- in a i am pleased that it started with recognition on both sides. it is important to negotiate and understand and meet with common issues, that is good news. because the pre-election rhetoric of the trade war and this kind of thing is not helping anyone. i think it started when the president of china gave a very -- speech, an american president type speech, talking about the benefits from trade. i think it will continue and i hope it will continue in the discussions here. there are two serious topics in order to start

about those talk postelection moves, the one industry to really stands out is the banks.ings today. we have a chart you put together looking at bank return on equity, still no word of the good old days pre-crisis when they are making tons of money. what did we learn today about investorshow our reassessing them versus how we saw back in december? >> absolutely. i really want to put into do really want to jump on what they've already gone over at the net interest margin. when you look at return equity and expanded out precrisis, it's interesting to look at how these returns stack up. you had arguably a good quarter from jpmorgan, citi, and on the downside today. when you look at those in aggregate and compare where they were precrisis, it's the new normal investors need to get to. what's interesting about the analyst activity, you didn't see a lot of price target drops. i thought that was interesting. analysts reiterated their price targets. even for citi, it's up a bit in terms of return potential. julie: one of the other groups that had been in focus following the electi

i added a final chapter -- a postelection chapter have out how we talk about the project restart.a forward and focusing on innovation and entrepreneurship. one of the right ways to attract talent. because we need to continue to be a magnet for talent. aret of our companies started by immigrants. tom: do you see hope for that? do we just have a business photo shoot with the president? have not seen the president since he became president. what are the chances of -- is mark cuban your vote for president? steve: he is a friend but i rightthink he is running now. it is four years before we have another president so let's focus on what we can do right now. hopefully we can come together in a bipartisan way. what happened five years ago this month was when congress passed the jobs act. i talk about that in the book. with crowdfunding on the internet and an ipo on ramp. so jobs, economic growth, technology -- and these are issues that have gotten bipartisan support. reasons to get this book is the photos. there is a photo of steve case in a bar band. it is incredible. you did that with j

. >> i'm well we've got really great questions here, the first of all thank you for your postelection leadership and activism, many activists are calling on the left to stay outraged and angry. as a motivation or a drive to action. how do you relate to this call for outrage and anger. and how does your activism relates to this. >> and to empathy? >> i think that, anger will eat your inside-out and one of the things i know about angry people, i experience a lot during the election is that it's sort of like a machine gun. they can shift just a little and turn into friendly fire. and i can think about the people who got all ripped up and stayed that way. i think it's a really destructive force that i think outraged is a kind of indignation, a sense that this should not be so. but what i feel sure of is for most of the long-term activists i know, they love the environment more than they hate oil companies. they love just more than they hate people who carry out injustice. hate is kind of, he is a kind of sugar you get a rush off but i'm afraid i'm going to go into a protein bar metaphor.

julie: we have seen the faltering of the reflation trade postelection.udes for the s&p 500 also. it sounds like your optimism within financials would maybe spread to the entire market as well. is that correct? randy: we have also seen a little bit of a softening on tech that didn't take off as quickly as some of the other sectors did. part of it has to do with many of the tech leaders being located in california and not necessarily trumps based supporters, if you will. when the logic came to the market and we have seen a little bit of softening. i believe we have been this way since the election that whenever we get a bit of a pullback, we are only 2% off of the march 1 ties. -- highs. not only in financials but tech and others as well. julie: and let's get to the options part of it. because of compliance you can't give us a specific trade but i want to talk to you briefly about general strategies given some of the investment ideas you are talking about. what kind of strategies are you looking at right now? randy: two strategies are a bullish risk revers

a postelection review about why the republicans have lost the last two elections, it came down to, the party did not seem to be welcoming to american voters of latino heritage and also because of social conservative issues but also the way republicans vote about these issues, putting off women, and talked all about how the party did not address this, and otherwise it was dead in the water. come 2016, the shocked really -- donald trump through the rules out. really now, he nailed white working-class voters who had been having trouble economically , not under obama per se, but for the last 20 or 30 years, and talked about going back to an never time again when america was great -- mercedes: ronald reagan. time, he saidsame many things that were offensive to latino voters. he said many things offensive to women. he was caught on tape boasting about sexual assault. and all the women who may charges afterwards. he attacked muslim voters. basically everything reince priebus said don't do, and i like to think this as, you watch football with the kickoff, it tends to bounce but every once in a

given us good as the government comfortably than confident we have a tory government returning postelection went to my years already think is going to happen? what is the follow-through? >> the follow-through is to get rid of a tory government. that's always the case. that ain't not work. that's up to the british people in the election. that is their choice. the reason we are in this inevitable position is because i just want to pay a tribute, a minor tribute to mr. david cameron. i think the history of this country in the early part of this 21st century comes to be written, and he will have one of the most prominent roles. decisions that he took well over time damage this country immensely. i remember serving on the original referendum bill known a stock without to pick it up from number 10 of the wharton bill. i remember one evening but then prime minister actually came into the committee room, i think it was committee room seven or eight is not in the public gallery to the hard right wingers and the tory party who were on that no committee. i've never seen or heard of a prime minister be

francine: let's go to mark barton appeared mark: european stocks are riding the postelection wave wewhich set risk assets higher, stocks gaining. a wonderful chart showing the cat 40 breaking it 17 year trend line. 4.1%rday we saw it rise by , the highest since april 15 -- april 2015. it reached a nine-year high and today it has crossed that threshold. reaching its highest level since 2008 on optimism that macron will be the door in the election. -- victor in the election. it is above 70 since the first time in march. euro-dollar little changed after the first rise -- biggest rise since june. quarter, 108cond third. they are saying below parity in the fourth quarter, including rbc and morgan stanley. the bloomberg dollar spot index near the five-month low reached yesterday. white house officials say trump will call for cutting tax for individuals and lowering the corporate tax rate to 15%. the blue line is the 200 day moving average. let's spread the difference in yield between the german and french 10 yield, narrowed to 19 basis points yesterday. just remember where we were back in

even if it is not as parabolic as we've seen postelection. 00 inarch 1 high of 24 the s&p 500 -- we wille will see these and earnings growth. -- decent earnings growth. that is where stock prices will fall, better than the bondsative given that will come under some pressure by year end in terms of higher interest rates and percolating inflation. cash will continue to yield zero on an inflation-adjusted basis. david: what is the canary in the mine shaft? is it cap x? when will ceos open up their check books? mark: that's what we are all weting for, the moment -- see contracting business investment over the last three years. if you look at sentiment surveys , they are off the charts. confidencence, cfo motherduke measure what t small business optimism, company leaders are raising plans. -- cfo confidence by the duke measure, the small business optimism, company leaders are raising cap x plans. that confluence of factors will lead to business investment. , loadingcyclical trade up on beta, what are you most cautious about? cyclical trade as it relates to industrials and materials stocks. fo

wholesale, however, it takes one step towards what this whole rally we started, postelection in novembern terms of adding clarity. right? if you're a small business owner, a ceo, trying to make a decision with respect to whether you'll make that additional hire, buy that capital equipment, this starts, although we know there's a long way to go this summer and fall, through the legislative process and probably some give and take around what this ends up looking like, but this starts to form clarity around what benefits you get potentially from this. >> steve, worried this doesn't go through? granted details to be seen. already i'm sure fufkal hawks within the republican party rolling up their sleeves getting ready to fight and dems out there already ready to fight. what happens to stocks if the tax plan falls flat? >> look, if your investment thesis is based solely on lower corporate tax rates. >> may not be. valuations of the markets may have been achieved on part on the backs of tax reform? >> what i recommend looking for secular growth stories in companies that can grow no matter the c

jonathan: a postelection relative value trade or a real investment to hold for the longer term?european fundamental story ,s well above trend right now but it is also an area where we do not see a mortal threat or tailwinds coming from brexit and things like that. above trend, because the trend has been dire, is it going to carry on improving in a sufficient way to compare to the recovery we have seen in the united states? ben: these of the equity performance, i am not sure that is a fair comparison. economy a half percent and that has not prevented equities from doing well and potentially re-rating as you get small improvements. david: europe is not a country as britain is in the process of proving. different parts grow at different rates and they had different unemployment rates so when we talk about europe, are there places where you are seeing higher potential for growth? -- it think there is complicates things for the policymakers in the way that different u.s. states grow at different rates and it is difficult to make a policy for each of them at the same time. when you lo

all setting the table that we have cleared the decks here the sentiment was just too positive postelectionverbought, one-sided. you need to clear the decks and markets, and that is what is happening. that is why we continue to like risk-on. alix: look at the technical levels. this is the s&p and the 50-day moving average. we just breached that leveled at we briefly did late in march. but the last time we touched it was really back in november right around the election. how much downs i do you expect, and when do you want to be buying? >> ok, well, the 50-day, yes, we have undercut that. i can give other technical indicators right now that lead me to believe the market is going lower. but i am looking at 23.22, the march low, and if we undercut that, then you are looking at the market going down in trading at the 20 to 33 level, maybe on the downside, 2282 on the upside, and that is the best area of technical support we see. and there is a market that had gotten ahead of itself, and it has got to have some fear, get in the markets, and then you will have the sectors coming down. look how th

coming up next banks among biggest win, in postelection trump bump from november as well as this morningall street rally an regulatory environment snap to report for the first time since roller coaster debut on wall street when snapchat parent company will make its first public earnings call. back in a minute. ♪ ♪ usa, the usa ♪ ♪ ♪ maria: good thursday morning. welcome back. thanks so much being with us. i'm maria bartiromo, it is re members to the bored that comes in his push to split stock in two classes more on pressure coming up stock this morning up a fraction. luxury on open road we are going bond wheel of the brand-new maserati downstairs on plaza we will take you to that, first biggest u.s. bank kicks off earnings jpmorganan wells fargo before opening bell shares jpmorgan chase higher after results came in better-than-expected, as you can see, citigroup headed into after beating expectations, citigroup lower as you can see flat. really right along break even 5850 wells fargo however under pressure following release of latest numbers with revenue 22 billion dollars missing analys

change.is 16 and the 10-year note has reversed the vote 60% of the postelection run-up in yields.m for de-risking phase. i do think there is still room to run in terms of this reversal from this trump economics. jonathan: i don't see it sizzling. -- fizzling. david, we have a tips option on thursday. as we see rates falling, what you think the demand will be? david: i think this in some delay in terms of the domestic progrowth, in terms of the heightened geopolitical risks, my sense is the bidders will not show up. keep in mind, we have only reversed a very small portion of the run-up in yields from last year's lows and only reversed just over half of the run-up since the election. i do think that looking at the transformation, anybody who was looking at it could see we could trade down at 2% on the 10-year note over the course of the next couple of weeks. demand should be pretty strong. alix: aside from buying treasuries and tips, what is the best other way to play falling rates? the best way if you're in the bond market is to go long duration for the time being. zero coupon bond