we are joined by sarah mcgregor in washington, sarah ponczek in new york. ve the world indices up on bloomberg. all of them in the red. tell us where the most damage was. sarah p.: where we continue -- sarah m.: we continue to see a large selloff in energy stocks. we saw oil being killed today, down about 5%, taking energy stocks with it. within the tech space, we continue to see the damaged focused on hardware and semiconductor stocks. technically, a bright spot has been software stocks interestingly enough. because if you backtrack and look how stocks have performed since the weekend president trump put out the initial tweets tech isgher tariffs, the worst performing sector, down 7%. but look at semiconductors down closer to 15%, and tech hardware down close to 11%, and software stocks are only down 2%. it all boils down to of course exposure to china. software and hardware stocks, hardware stocks are much more exposed. so if you want to stay in tech, software might be where to go to weather the storm. emily: so sarah mcgregor, how are the trade discussion

scarlet: robert, thank you for making the case, and of course, sarah ponczek.oming up, we will discuss etf's and business. and one etf that caught our attention this week. the i-shares emerging market etf. as the trade war heats up, we are tracking equities and how it is bleeding money at the fastest pace, yanking more than $1 billion of funds on monday alone. you can find that chart and others we feature at gtv . this is bloomberg. ♪ ♪ scarlet: i am scarlet fu. this is "etf iq." it is time for this week's etf lifecycle where we cover the three main features of an etf. step one is the filing. aberdeen starts the paperwork for three etf using artificial intelligence. one fund focuses on u.s. equities, another on international development and a third on em. step two is the launch. the amplified peer-to-peer lending and crowdfunding etf creating under the ticker lend. the first one to focus on this space. unfortunately for some, the final stages liquidation. blue sky asset management will shutdown a trio of etf's after a group struggles to overcome the relativ

scarlet: robert, thank you for making the case, and of course, our reporter sarah ponczek.ing, nancy davis joins us. she began her own hedge fund. she explains why she is looking at etf's for her business and one etf that caught our attention this week. the i-shares emerging market etf. as the trade war heats up, we are tracking equities and how it is bleeding money at the fastest pace, yanking more than $1 billion of fund on monday alone. you can find that chart and others we feature at gtv . this is bloomberg. ♪ scarlet: i am scarlet fu. this is "etf iq." it is time for this week's etf lifecycle where we cover the three main stages of etf's. step one is the filing. aberdeen starts the paperwork for three etfs using artificial intelligence. one fund focuses on u.s. equities, another on international development and a third on em. step two is the launch. the amplified peer-to-peer lending and crowdfunding etf begins trading under the ticker lend. the first one to focus on this space. unfortunately for some, the the final stage is liquidation. blue sky asset management w

bloomberg's crossed s at reporter sarah ponczek joins us from new york.re was the pain -- cross asset reporter sarah ponczek joins us from new york? where was the pain? sarah: very much in tech. it was across the board, but the industries hit hardest were semiconductors and tech hardware. for one, technology stocks, technology companies are very heavily exposed to china. these are companies that get a lot of their sales from over in china. but if you also look at what the threat right now is, the t hreat is we might see the tariff rates increase from 10% to 25%. president trump also threatened we could potentially see tariffs on 300 when he $5 billion more worth of goods. -- $325 billion more worth of goods. this would include computers, smartphones. many of these consumer products were left off the list. if these get taxed, we will see that filter through the markets. emily: a chart on the bloomberg shows the worst performers of the day. technology at the bottom of the list. what is next? will we see this every day until friday, when we have some possibl

let's go to sarah ponczek. d rally has been in focus all week long but now wall street is saying maybe it is coming to an end. white line, 10 year treasury yield. blue bars showing the price action. as you can see all your long, 10 year yields moving to 2% while tlt has been getting and i slept. 14 daybottom, you see a relative index. it is now oversold for tlt and has been a good indicator this year. in march, overbought. we saw yields get a nice top. same in early january. maybell street is saying we will see a pop in interest rates. twitter coming out on saying will probably see -- vonnie: well done. fantastic charts. i think my money is going to go with sarah ponczek today. alix: i am like a three-week loser now. i am struggling. vonnie: you are always the winner in my book. you are also coming up on commodities edge. so you have another chance. alix: redeem myself, apparently. that is at 1:00 eastern, 6:00 in london. that is alix steel on "commodities edge." coming up on balance of power, rich clarida is sc

still with us is alex of jp morgan asset management and bloomberg's sarah ponczek. you had said that now is not the time for bets. if one was trying to get in, waiting for an entry point, are we going to get any kind of catalyst that will get us back to the level. >> when you look at the landscape with the kind of u.s.-china trade war. tensions rising in the middle east. emerging markets as well. there is heightened geopolitical risk at the moment. as those clear, i believe that would be the catalyst for the equity rallies. but you need those clouds to clear and you need them to go, in the minds of an investor, the right sort of way. alex wasking to what saying there, obviously you could make that argument in the short direction and long direction. how much is hedging the activity because people don't want to take real directional bets sort of masking anxiety we might not be seeing if we looked at overall index levels? seen a big pickup in hedging lately. right now, investors are worried that they are going to miss out. we get a tweet saying negotiations are going b

let's bring in sarah ponczek. when he to start with the turnaround in equities. looks like we will continue to see the selloff a six straight day of declines. sarah: it is pretty amazing when you look at the strength and breadth of the turnaround. just about the time of the bottom, just about the time we heard the comments coming out saying talks had con constructively. looking at the s&p 500, only 10 stocks, less than 10 stocks are in the red eared this is a really they get. a huge amount of participation from the index on the sector level. industrial tech, still the worse. same thing. looking since noon those are clearly the areas. joe: in the grand scheme of things come as a comeback is pretty mild versus what we had seen this week. selling exhaustion, so to speak? sara: it absolutely could be. heading into the weekend usually investors might want to do risk. we hope higher tariffs in place. yes we have heard from both sides that the talks were constructive, but we heard china has vowed to retaliate. have also been talks of putting tariffs on the extra $325 bi

we are joined by sarah ponczek and marty schenker. we have to start with theresa may and a short look back on her tenure as prime minister. pm may: her majesty the queen has asked me to form a new government, and i accepted. do we have a plan for brexit? we do. united kingdom's permanent representative to the eu handed a letter to the president of the european council on my behalf confirming the government's decision to invoke article 50 of the treaty on european union. brexit does mean brexit. there shall be no general election until 2020. we need a general election now. every vote for me as a vote for strong and stable leadership. strong and stable leadership. i am working to get a deal that parliament will support. i've reached a deal with the leaders of the other 27 eu members states. it is clear that the house does not support this deal. we are now at the moment of decision. i fear we are reaching the limits of this process in the house. we will now not leave on time with a deal on the 29th of march. it is slipping away from us.

david: thank you, sarah ponczek. coming up, more on the market selloff.d stephen englander joined the program. one final check on the markets today. down close to their lows, down over 3% on the nasdaq, over 2.5% on the dow jones and s&p. live from new york, this is bloomberg. ♪ >> let's get to first word news this afternoon. china has plans to raise duties on american import starting june 1, defying calls from president to escalate the trade wars. the new rate of 25% will apply to 2500 u.s. products, with other goods subject to duties ranging from 5% to 20%. the european union is set to retaliate against the u.s. it is finalizing a list of products to affect if president trump continues on with car imports. theresa may is trying to arrive brexit negotiations with the opposition party, promising to reopen talks with the european union. she says they will explore rerunning the agreement on customs ties. she warns lawmakers don't want a second referendum on brexit. swedish prosecutors will reopen into rape allegations with julian assange. authorities want t

romaine: i want to bring in bloomberg across asset reporter sarah ponczek. you heard what alicia said in regard to earnings. things were looking up, but is there a real risk here that the earnings expectations will be revised downward if by friday or by? monday we don't have some deal? sarah: there is a real risk. if you think about right now, executives filtering through to guidance and analysts putting in forecasts. right now, they have tariff levels at 10%. if you see those rise to 25%, or more goods being taxed, that has to be filtered through to guidance and the new forecasts. ubs estimated we could see eps estimates contract 5%. looking at growth expected this %, so looking at flat growth for the year. there is a big risk with earnings, and acutely where the risk is when we talk about trade. caroline: alician, you mentioned the fed. an interesting take from one of our opinion writers, saying this of chicken between china and the u.s., but a game of chicken between trump and the federal reserve. at what point would be fed have to move back in to support

amanda: great to have you with us, sarah ponczek. some breaking news out of a planned appearance in a vancouver courtroom, the next stage of the action edition hearings for the huawei cfo. lawyers on her behalf are asking for a stay of proceedings. the reasoning is interesting. abuse of proceedings being cited, that her constitutional rights were denied while the whole thing was undertaken in the process. she is seeking a change of residence in vancouver, so that is a signal they expect her to remain there for some time. also citing comments from president trump, claiming they amount to political interference. that caused a bit of a storm in canada some time ago when a senior-level ambassador suggested that maybe a reasonable argument to make. he lost his job over that. trade, beijing threatening the u.s. with countermeasures if we see that next tranche of tariffs. top officials in washington tomorrow and friday. yet to be seen how optimistic we should be. for his part, president trump blaming democrats for the stalled talks, includi

and thanks to bloomberg's sarah ponczek. "what'd you miss?" is next. this is bloomberg. ♪ romaine: live from bloomberg world headquarters in new york, on romaine bostick. caroline hyde is off. joe: i'm joe weisenthal. romaine: the dow jones dropped about 9/10 of a percent. the nasdaq falling about 60 points. joe: the question is, "what'd you miss?" romaine: china's threat to use its dominance of rare-earth. flight -- the pimco ceo shares the worldview in a bloomberg exclusive. retail pain continues. abercrombie, canada goose tumble on disappointing results. we will hear from the tommy hilfiger owner later this hour. joe: we begin with another risk off day for the markets. havens.s fleeing to bloomberg macro strategist, the bond market, what does it mean, the inversion, the rally in the long and. -- the long end. market traditionally has done a pre-good job of forecasting recession, but that doesn't mean that every bond -- none of the other major curves inverted. at how: when you look sustained this bond rally has been an overlay it with equities forgot

still with us, patrick from credit suisse and bloomberg's sarah ponczek. basis, a pure valuation we have seen markets overall from the bottom at the end of last year. is that cause for concern? are they stretched? patrick: we think the market is undervalued. a lot of times, people look at pe as a way to gauge the value of the market. investors are trying to understand how much cash they are generating, how much they can return to the individual shareholder. pe does not accurately capture it. if you look at an alternative metric like price per cash flow, they are under the long-term historical averages. what happens if the valuation of the dollar continues to strengthen? patrick: the dollar is a very interesting dynamic. higher dollar is a slight headwind for earnings but it is positive for multiples. money tends to flow into the united states as the dollar strengthens. it goes into large-cap companies. what we typically see is, in particular, via -- valuations move higher as the dollar strengthens. caroline: a company that, after its ipo, finally getting s

we want to say thank you and asdbye to stephen whiting well as bloomberg's sarah ponczek, our cross asset reporter. that does it for the closing bell and for me. romaine bostick is stepping in next four "what'd you miss?" -- for "what'd you miss?" this is bloomberg. ♪ caroline: live from bloomberg world headquarters in new york, i'm caroline hyde and here's a snapshot of how u.s. markets closed down on the day. it seems as though potentially and insurance rate cut is on the table. chairman powell seeing no strong case for a rate move in either direction. meanwhile, steve moore's chances of a fed seat sink as republican lawmakers voiced doubts. most valuable u.s. marijuana company is making a billion-dollar bet on cannabis oil. let's get back to our top headline. the fed leaving the main interest rate unchanged, pledging patients as it grapples with conflicting currents in the u.s. economy. let's listen to the the fed chair speaking about the fed decision earlier. >> we do think our policy stance is appropriate right now. we do not see a strong case for moving in either direction. the weak

for more market analysis, let's bring in sarah ponczek.e off these days before holidays, right? essentially like the day before memorial day but i think back to christmas eve, december 24, and it was a totally different kind of day. sarah: that was because we saw a huge lunch. you cannot -- plunge. you cannot make nothing of that. on the summer 24, you look at the volume and we sell a lot on pretty light volumes. you look at the volume trading right now, dow volume 30% lower than the average at this time of day over the past 30 days or so. so yes you can look at these days and somewhat write them off because trading is just so thin. you look at the price action today, up, down from a floating around, not much to take away from it either. joe: looking at the one-week chart, 1% is not that big of a deal. sarah: it is really not that big of a deal. if you only paid attention to the headlines and you only listened, you would think we are so much further off than where we actually are right now. s&p, how far we are off the highs, only 4% off th

we welcome our cross as reporter sarah ponczek. shortened because it has reached heavy levels, is there another reason? >> you would think so, or not. investors, it seems they are hedging their positions, especially when it comes to short positions. we have seen open interest surge in the q's, the etf that tracks the nasdaq 100. investors seem to be torn between two ways. they feel the market can keep going higher, potentially, if traders keep putting off this trade deal, thinking something will be breached eventually, that it will not doom the u.s. economy or the global economy. however, they still want to be positioned in case we see some downside moves. as we have seen over the past two weeks, it's been hard to decipher exactly where this market wants to go. yesterday, we saw steep falls. today, we are really just bouncing around on light volume, especially ahead of the long weekend. you want to really get the best you alsohigher, but want to protect yourself from any follow-up we could see. amanda: it is interesting, sarah. it