i'm remy inocencio.sury yields broke through the 3% mark for the first time in four years. some think this could be a turning point for the bond market. erik schatzker spoke exclusively with charles schwab ceo charles charles schwab's ceo, and spoke about how investments might change if bonds turn bearish. >> it is a big issue. we try to do a lot of education with investors around what it could mean in a rising rate environment. here is what won't work. what won't work is the thought, well i will get out before it happens? that won't work. unfortunately, that is something we hear from some investors and that is not a strategy for success. >> so even in principle if it doesn't work, do you think we will see a stampede at fixed whether it is schwab accounts or elsewhere? >> it depends on the pace at which rates go up and how far it goes up. ups a e-gov -- if they eke as they are now, you will not see it. if you see rates jumped 200 or 300 basis points in the course of 90 days, you are going to have panic a

ramy: i'm remy inocencio in new york.t the first word news with paul allen. paul: the trump administration has indicated it is willing to negotiate with china as trade tensions escalate. china announced reciprocal tariffs on u.s. products in line with the $50 billion of duties ordered by president trump. china is targeting soybeans, automobiles, chemicals, and aviation. it will take effect when the u.s. institutes its own tariffs. >> china will not back off from its 2025 program. they are going to work hard irrespective of american tariffs to make sure they develop the economy and future technologies. we are not going to be able to slow that down. some of their practices of pursuing that 2025 are not fair, but a lot are fair. we have to start developing our technologies at a much better pace. paul: fed officials are warning the potential trade war as uncertainty to an otherwise bright economic outlook. it is too early to say what it may mean for jobs, and policy. james fuller says there are downside risks. fed governor al

remy inocencio at the wall with the bloomberg terminal chart we need to know. analysis dashboard. su was just talking about energy, consumer discretionary, as well as industrials. take a look at the earnings of rise. it just gets better and better. looking at consumer 12.57%, looking ahead to see how that changes. . want you to look at this that is the earnings surprise for information technology. sectors, you can see how well they are doing. right now we can see that only nine of 68 s&p companies have recorded. that is going to fill in with at least eight more including amazon, facebook, twitter, etc. head into my second bloomberg terminal chart. i want you to see how well the tech sector has performed against the s&p 500. if you werethat long for most of this year, you are performing better. the yellow line here is the correlation, the spread, between both of these lines. it is doing pretty well. let's hop even further into this. it is actually the fangs we want to talk about, the biggest companies here. here in yellow, netflix is stealing the spotlight. it i

remy inocencio will walk us through the successes.more positive negative, especially when you look at j.p. morgan and citibank on friday. we are looking at better equity trading, better cost cuts, and we are looking at those tax cuts and the knock on effect they are. let's look at the first chart i have here. the cost cuts are what investors are happy about. look at that number on the right-hand side of your screen, 60%. the last time the expense to revenue ratio was 60% or lower was more than five years ago, so clearly brian moynihan getting his costs under control, under that $53 billion mark. saying this is that -- ever core isi sing this is the gift that will keep giving. 2%, butd as much as bank of america is up 31% the past year or so. hop into the bloomberg. i want to show you more in terms of share price movement. the past year, 31% jump. hereof this we are seeing is in terms of equity trading and fixed income trading. i will talk about fixed income trading first, actually and negative. that is in white, falling 13% year on ye

betty: remy inocencio with the latest.se convenience store operator say employer profit will increase 6% as it looks to draw in more revenue from an expanded u.s. presence. let's get more analysis from tokyo, we are joined by a partner at managing consulting form at tyranny. before we get talking about it specifically, i want to get your quick take on some of the numbers we got out this morning on japan/we had household spending coming in about 1/10 of 1%. we knew february might be slow. labor cash earnings were a bit higher at one point. what does that tell you about the japanese consumer? japanese --betty: what do these numbers tell you about the japanese consumer? think japanese consumer sentiment is upbeat. the unemployment rate and all of these stats show the economy is in a good state. the numbers suggest people are quite happy. the wage is stagnant, but that is not going to negatively impact the feeling. betty: how are these convenience stores best positioned? the convenience stores are such an integral part of cons