joining us with the story is sarah ponczek. great to have you with us. illustrates the landscape of what has happened since august of last year. expects wall street now steeper yield curves for 2020? sarah: this was a great story from our fx and rates team. the yield curves sending recession signal is "so last year." if you talk to different portfolio managers, what they found was many are actually putting my to work for a steeper yield curve next year. blackrock,t is mutual asset management. if you look at the short end of the yield curve, monetary policy is likely on hold. the fed has said many times including last night that policy is in a good place. very unlikely monetary policy is going to shift in any way, shape, or form, unless their outlook changes. if you look further out on the curve, look at theif you look af the yield 10-year, that is starting to be driven by growth prospects and inflation going forward. as risks falloff, whether that is trade between the u.s. and china, brexit, also some economic data starting to stabilize -- it's some say t

i went head over to new york where bloomberg cross asset reporter sarah ponczek is standing by. are we ignoring the trade headlines? sarah: i don't know if we are completely ignoring the trade headlines, at least the good ones. that the u.s. is softening its stance, that did engage in negative outlook. take a day like yesterday, a bureau chief from cnbc noted that the tone in china is pessimistic. they were unfortunately seeing that the u.s. was not going to rollback those tariffs. focused on stimulating their economy. the s&p 500 information technology index hit a new high, apple hit a new high. the bad news, as you said, does seem to be ignored, not just in tech, but in the broader market as well. taylor: i want to show a chart in my terminal, which is apple and microsoft. exceeding the entire market cap of the entire consumer staples index. fomo, fear of missing out on this massive rally. sarah: this chart is pretty unbelievable. the entire consumer staples and the s&p made up of about 30 companies or so. the other, the combined market cap. two companies have a larger market c

us is crossll with asset reporter sarah ponczek and wealth advisor jason katz. jason, this rally we are seeing in the russell 2000, is it sustainable or just thanks to a couple m&a deals? jason: i find it heartening because for the past few years, there have been people clambering over u.s. large-cap growth and people who properly diversified were not rewarded. in emerging markets, the value trade. is it sustainable? it is all predicated on whether these pmi's indicate a bottoming, whether the shrinkage 12h debt down to about trillion is indicative of a global economy that has found its footing. if it has come a growth next year's would be mid single growth next it has, year would be mid single digits. joe: on a daily today, basically everything is up. reporteading a goldman this morning, hedge funds are still overweight. the big tech names, microsoft. like facebook and amazon. to value in tech or is there life coming back into these growth names? today, it looks like the rotation is intact. over the past two weeks, we have seen a rotation faltering bid. like ou

caroline: let's return to the inside track with sarah ponczek. risks,t uber, regulatory the lockup period is expiring, but your perspective on what has been a brutal time for ipo's. we have pellet on, softbank -- peloton, softbank tomorrow. this?you stand on all of the commona lot of thread is they have been asset light companies and subscription models. if the world is going cyclical, reflationary, inflation picking up, subscription models don't work well. caroline: you think inflation will pick up? to: if you look at employee population ratio, it is telling us 50 basis points increase next year and inflation. joe: speaking of inflation, how much is some of this latest bout of investor optimism engine on those comments by powell about the high bar of rate hikes and the need to see sustained upward level of inflation. the comments from powell were definitely cited as some of the reason. i think you have to acknowledge the argument -- rlet: sorry to interrupt, but uber has come out with results. loss per share of $.68. analysts were looking for a

also joining us is sarah ponczek.ob, value investors had a good bit of a run over the last couple months. i guess the overarching question is is this sort of outperformance we are seeing in value, is this going to be a consistent theme going forward? rob: my short answer to that question is that there is absolutely no way of knowing near-term whether the turn has already happened or whether this was a head fake, a bear market rally in value stocks. but what we can know his value is trading extraordinarily cheap relative to growth as compared with all historic norms. and that when value got as cheap as it is today, it subsequently beat growth by an average of 6% to 8% per year over the next five to 10 years. so, i'd like to think if you are crossing a stream, forget the eddie's, the short-term eddie's, look where the current is, enda curran has been adverse for value, but value is so cheap now that the current in the coming five to 10 years is likely to be relentlessly beneficial. what exactly does your fundamental ind

edward campbell and sarah ponczek, thanks. that does it for the closing bell. but what did you miss is next where we will take a look at the outlook for the retail sector with nate checketts. that is next. this is bloomberg. ♪ this is bloomberg. ♪ scarlet: live from bloomberg's world headquarters in new york. here's a snapshot of how u.s. stocks closed today. another day, another record high. the mood continues unabated. the dollar strengthened and treasury yields increased. romaine: same story, different day. u.s. stocks climbed into another record as a risk on move shows few signs of abating. and the impeachment saga continues. president trump denies directing you rudy giuliani to ukraine to dig up there on his political rivals. and bursting the black friday bubble. is the hype overinflated? we will look at why some say retailers should treat the holiday season like a marathon and not a sprint. all that and more, coming up. slew of u.s. economic data it was released today showing that consumers are restraining their spending before the make or break holiday s

scarlet: still with us, sean matthews, chief investment officer and bloomberg cross assets reporter sarah ponczek. at the marketing doing just about nothing, jay powell had a meeting with steven mnuchin today. it would take a lot for the u.s. to get to negative interest rates even as the u.s. pushes for it. shawn: i would be shocked if we had negative interest rates in this country. europe is in such bad structural position that they had to move there and clearly it did not work. ,apan, 20 years of not working europe, going on a decade of not working. it is a horrible outcome because -- thenking sector interesting thing with powell, where they talking about a trade deal that is not going to happen , that it does not happen is one of the conversations. scarlet: probably a circular argument. peter coy had an argument that the president's views are shaped by his time as a real estate developer. joe: national interest rates, very different dynamic from a private entity that needs to borrow. that jumped out to be it is market is that actually having a pretty good 4%, slacklyft up over have any good da

joining us to take us through all of this is bloomberg's sarah ponczek. k has had this plan to spin off assets. it is a notional of $50 billion. sarah: right. it is exactly 51 billion dollars, all tied to em debt. like you said, this is really all a part of that massive restructuring program that is going on under ceo christian sewing. this isn't the first time deutsche bank has sold assets to goldman sachs. back in september, goldman sold the asian portion of its equity derivatives portfolio to goldman , and they sold some other portions of other portfolios as well. what deutsche bank is doing is they are looking across their portfolio, figuring out where they really can't be competitive, and trying to spin off those assets, roll down the capital buffer on their balance sheet to be able to fund other costs. david: christian sewing is doing what he said he could do, betting that they would get a good deal. sarah: goldman sachs clearly wants these assets. same thing with the equity portfolio, the asian portion of the derivative portfolio. they also sold off

bloomberg sarah ponczek is looking at what is behind the rally. traight weeks of gains for the s&p is the longest 2017. street since my nasdaq and dow included. if you look since early october, which indices have driven the rally? that is when the rally picked up steam. it is cyclical areas of the market. industrials, financials, tech, health care, materials all up 7%. on the flipside, the trade off yearstart earlier on the all underperforming. , inou mentioned the dow october we were in the 26,000 areas. three companies have accounted for 70% of those gains, that being united health, apple, and caterpillar. i also want to point out microsoft. microsoft and apple are trading at record highs. if you add the market cap together, it supersedes that if the entire russell 2000. astounding if you think of the numbers, but it is also been a calm ride higher. the vix is anchored closely to that what 12 level. straight days where the s&p 500 has gone without back to back declines. that is the longest streak since 2005. alix: good perspective. thank you very

us at the desk, michael, chairman and ceo of the market field asset management, and bloomberg's sarah ponczek. let's start with bonds selloff. where a long way from the three-plus percent at the beginning of the year. along way from where we were couple of months ago. is this prolonged selloffs or do you think rates will settle somewhere in the range of where we are now? >> i think they will move higher. a target.o is the 200 day moving average is a little bit higher. i think the short end of the curve will settle around 175. in the end, it will listen to the fed and understand that the fed will probably not move again. joe: if you had gone back to mid-summer and told people that uber would be cut like 50%, we work would not get out the door, how shocked would people be that this was a market at all-time highs? >> i think people would be fairly shocked. different levels of risk. with we work and uber, you were talking about extreme risk. up to this point, a sense of risk aversion. you look at the sector composition, although we have seen a change to the cyclicality lately, and a lot of it was