they are seeing a 15% selloff in their trading unit, the bank selloff coming.ly did plunge. quantitive easing has already started to hurt equities. it ha helpeds german bonds, but not portuguese bonds. so all the assets we thought would benefit the riskier assets, perhaps the living up to the expectations. guy: i would pour cold water on all of this, and here's why. the fed's qe policy drove the equity rally, the seven-year bull market was driven by qe out of the fed. and when the fed stops doing qe, we started to get nervous about equities. so yes, maybe qe hasn't done much for european equity, but it did a lot for global equity. the problem is that the ecb was late to the party. caroline: very late. maybe it will take years to see the sort of benefits the united states reaped. maybe we will also see the amount that needs to be injected. we are well behind japan and the united states. how much more can monetary policy do, and should it be injecting? if we take the japanese experience, it will force fiscal policy to move. maybe it will have an impact. plenty of

yesterday we went back to selloff mode. the banks were the hardest hit in february in terms of sectors. what was also interesting to watch about yesterday's session, and we'll continue to monitor it today s oil gained 3% yesterday. yet, the s&p closed lower. oil closed at the highs. stock markets closed at the lows. the question is, what is now driving the u.s. stock market? is china a bigger concern? there were some chinese concerns overnight yesterday. what's the narrative in the u.s. market heading into a jobs report, an all-important fed meeting? is it this idea central banks have lost it? >> i think that's still front and center. i think again today, the debate will focus back on banks again as barclays, a big international bank with exposure here, has suffered. >> march 10th, mark your calendar, ecb. a number of big individual stocks out of europe. barclays reporting a net loss of 394 million pounds. it slashed its future dividend payouts. the company plans to restructure its business into two core divisions, focusing

potentially why you saw the selloff on the nikkei on that stronger yen.ound under a bit of pressure, down a half percent against the u.s. dollar. >> the euro in the short-term last week managing to bounce back a little. it was down to the 108 handle, now back at 109. yes, we approached ecb and expect more easing, just a bit of movement there to take note of. gold continuing its strong start to the year, 1 t.268. oil prices, we've had a couple strong weeks. >> the question for the u.s. market is now that the s&p has had this big move higher and is barely negative for the year, the first three-week winning streak of 2016, can the data continue to point to improvement and away from the bears? this would suggest the selloff to start the year was overblown. >> but then does it play into possibility of a rate hike, which is one of the factors that spooked everybody? >> it's got to be good but not too good. >> which was too good on friday. >> that's the kinds of jobs report we got, 242 is better jobs, but wage dip dropped slower. oil has stabilized as well. that

our guest says we may be reliving 1999 where the risky asset selloff now but rally later.ing to discuss what this means for the markets and how the euro may be the best hedge. minute. with our market the janet yellen of rally definitely continued into the day. the s&p and the dow extending the 2016 highs. the s&p higher for a 30 day. i should point out that we are off the highs of the session. the dow at

your starting to selloff a little bit.olatility in that sector good hans: we have not seen any oil reaction to the news. has that surprised pullout in syria. we will look next at what russian troops leaving syria will mean for peace talks. ♪ hans: welcome back. told minutes into the session. googler going to work nevertheless. what kind of market are they looking at? a fairly mixed one. the market wedding for the fed to figure out what is going to happen next. .5%.by we are waiting to see what the fed has to say. let's get you caught up on anything you need to know. here is first word news with kumutha ramanathan. kumutha: the people's legal china has set to drop their rules on foreign exchange transactions and to curb currency speculation according to people familiar with the matter. the initial rate of the tobin to allow kept at zero authorities time to refine rules. the levy would be most extreme policy yet to prevent debt against the yuan. russian president vladimir putin orders the withdrawal of most of its forces fro

rio tinto had a heavy selloff earlier in london. in sydney, we are having a look at whether reality is setting in again for commodities stocks. it appears so. rio tinto and bhp both up about 3%, as is for to skew -- four to iron nor is weirdly stable overnight. every other commodity took -- weirdly is stable overnight. every other commodity took a hit. these are commodity lows we have not seen since november. it had an impact on bhp in london, off 8.5 percent. rio off 9.5 percent. look at green core, up 18.2 percent. anglo mining down 15 point 5%. makes what's going on here in australia look pretty tame by but it also raises questions about what we saw coming out of the chinese national people's congress over the weekend. trade figures were pretty wonderful. that seems to be underpinning much of what is going on in the commodities race today. rishaad: thanks. sydney.en in let's have a look at what we are watching. theambition to become world's biggest cinema chain. getting a bit of pushback. we have that story and some of the others

nothing dramatic, but sharp selloffs in airlines and leisure stocks. "worldwide exchange" will be back with continuing coverage of the brussels attacks. ♪ you're not gonna watch it! ♪ ♪ no, you're not gonna watch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >>> welcome back to "worldwide exchange." if you're just waking up, there have been explosions at the airport in brussels. officials say two explosions occurred, and passengers are being advised to stay away. the facility has been closed. belgian police confirm a separate explosion near the european union institution headquarters. the u.s. embassy is recommending u.s. citizens to avoid all public transportation. the blasts come four days after the capture of salah abdeslam, a suspect in last year's paris terror attacks. >> and we are seeing a global

the chinese currency weakened, perhaps fueling this risk aversion and global market selloff we're seeing overnight. >> indeed. you mentioned the move to the yen in response to negative rates. of course, the moved in the euro has been pretty similar. the net move, at least, since a further move to negative rates last week. the euro strengthened a little by friday. let's have a look at european equity markets. red across the screen. similar to the vibe in asia. we've lost a bit of steam today. we lost a bit of volume too. it's as if there's no conviction out there. and what conviction there is, it's a little soft. >> maybe it's all in anticipation of janet yellen here in the u.s. we've got a heavy data load. inflation, the consumer, and the fed taking center stage today. first up, february retail sales out at 8:30 a.m. eastern time. forecast to have slipped last month due to cheaper gas prices. core sales will be key. they are expected to rise. also at 8:30 a.m., we get february producer mi er price i wholesale prices. they're expected to dip after edging higher in january. and the federal

market selloff yesterday. the s&p 500 has 2% upside and a 20% downside, being called a bear rally. .et's bring in tim hayward he oversees more than 100 billion euros in assets. great to have you on the program. you are something of a bond guy as well. risk sentiment is what he's trying to tap into when he's talking about how this is a bear rally in the united states. into context where big been, snapping the longest with thece october fall that we saw on yesterday's session. what do you make of the return we've seen to risk appetite? the financial markets have gotten themselves into more of a financial funk than was necessary given the relatively strong economic data that's emerged during the first quarter. it's a return to that joining up economic data to financial market data that's been driving the rally for the last month. he goes on to say that he prefers g-7 bonds over the u.s., which is to say negative yields instead of positive yields, which is an interesting viewpoint. he's talking about the currency

that was causing a massive selloff.hat's completely reversed, thanks in part to the weaker dollar. the chinese have signaled they have more control over their economy. now the chinese yuan is actually at the strongest point against the dollar this year. >> a 2% gain for the quarter as a whole, which as you say compared to those losses we werer it fird about earlier, it's quite the opposite. >> euro strengthening. dollar continues to weak. the dollar is coming off a bit against the japanese yen, something worth watching. the stronger yen has been very spooky. >> 7% move up for the yen against the dollar over the course of the quarter. if you wanted an indicator of central banks outside of the fed not having the ability to react anymore, that's perhaps the best one. whereas the fed just changes its rhetoric on whether it will hike. we'll see the dollar move in the other direction. >> and we also showed gold, best quarter since the financial crisis. >> indeed. >>> crude falling today, but wti has been on aer it since early

into the big selloff, january is the big selloff. you start to get these lines blowing out a little bit. you can see the inverse correlation beginning to break down a little bit. the point here is, you have had this very strong period of risk on, risk off. which the market has weathered. are we starting to see more volatility creeping in? that is something that investors will pay attention to. the other thing to note is, if you extrapolate what the yen has done this year, and work it through to the rest of the year, you could end up with a strong yen this year which is something that mr. abe and mr. kuroda are not keen on. but taking it back to the correlation that some of those will break down even further. manus: this has been a headache for corona. -- kuroda. when we asked you last week you said, my long dollar prediction is based on the assumption that the bank of japan will do more. how does this factor in? >> it is a very interesting analysis. i think one of the things that is beginning to change is investor holdings and positi

ipo's, investment bank, maybe selloff u.s. barclaycard business.ive too much consideration for that piece of research, but said that they are going back to this transatlantic position. when you ask about the weakness in the investment bank, he points to the strength in the core franchise. he likes to put that part of the business in with the other parts of the business and say that they are keen to develop. they talked about how they have taken down risk-weighted assets. he says that some of the positives have not been factored toyet, like they made plans sell part of the business but have not been factored in. there have been calls for something extremely drastic and this is what they have delivered. this is a man who has already taken headcounts. he has already delivered a bit here. the other thing happening in terms of reorganization of the company is ring fencing in the u.k. the u.k. decided it wanted to ring fence the domestic assets. in the united states, they ring fenced the foreign assets of some businesses. as a result, have split themselv

the global rally maintained momentum on faith that the selloff was overdone. super tuesday for trump and clinton. the front runners strengthen their grip on party nominations. thethe market priced in possibility of a trump presidency? blackrock predicts a brexit would be bad for britain. we speak to one of the authors of this report. welcome to "the pulse" live from bloomberg's european headquarters in london. i'm guy johnson. let's check in on the european equity story and show you what is happening. front foot forward, risk on, tax 1% higher. ftse up 0.5%. nearly 0.8s up by percent. asia had a solid session. the nikkei roaring ahead. take a look at dollar-yen. that is up 0.3%. the nikkei up 4% overnight. go to your terminal. the nikkei, the stoxx 600 and the s&p. the non-us markets have a lot catching up to do. oil is trading lower. let's get you caught up with all the news. here's nejra cehic. donald trump has a firmer grip on the republican presidential nomination. he's taken seven states as part of a commanding super tuesday showing. ted cruz won texas as

>> we are seeing a selloff in oil today -- let's take a look at oil prices. a decrease up off the lows a little bit but a report saying iran is not ready to freeze reduction. damper ontting a things in recent weeks. now a look at the bloomberg we've got the uti in yellow in the s&p 500 and white and we've got this bounce for both over the past leaks and now a little stabilization, particularly for oil prices after that big lift. let's talk about rates and the safety trade. and these in gold today 10 year yield going down going into the fed meeting this week. towardld see rates low years and then we are not going to get many rate increases this year. maybe one by december that will keep rates low. vonnie: thank you so much. time now to get a check on the headlines with the bloomberg first word news with mark crumpton. mark: the oklahoma city police department held a news conference to discuss the release of the aubrey mcclendon accident report. he's a former ceo of chesapeake energy. police say he was going 88 miles an hour when his car slammed into a bridge e

that was reflected in a sustained selloff of the pound against the euro.n of that seems likely, at least in the near term. that said, some of the negatives are already in the price. significante a change in the polls, the pound downsized. scarlet: with geopolitical risks increasing, what was this due to the quiddity and positioning? mark b.: what will this do to positioning liquidity with geopolitical risk increasing? be eroded,lihood to as a layer of geopolitical risk and uncertainty to the overall outlook, which is inherently negative, putting on sizable bets. guess -- on the day, your previous remark about why the euro is not underperforming as much as the pound, that goes precisely to that, the lack of confidence, the lack of paid toy, being trade money. you need certain bets. happening, of this and we have a precedent, with the paris bombing, the pound could be the underperformer on the day, with the near-term. a sterlingay out as negative event because of the lack of confidence in the market. alix: you mentioned a euro negative event, but it has trad

francine: european equities rebounding strongly this morning after yesterday's post ecb selloff.et's get more with james b evan. you were going to some of the companies you would be buying. this puts more pressure on japan. japanese equities in this great financial experiment, if it is dead in the water, can it bring the world back into recession or is it isolated? james: i do not think abenomics is dead in the water. we need to see the second arrow of the plan. abe dealingee mr. with fiscal expansion, excepting the future generations to pay off debt. and we have to have structural reforms. i think there are excellent buying opportunities in japan right now. interestingly and somewhat diverted of what we were discussing, amongst banks. icing of look at the prcin the banks, there's fantastic value. francine: the i.e.a. 15 minutes ago said oil prices may have bottoms as high cost produces are out of the market. is that true? james: it is quite a tricky statement when one thinks about its bottom. do i think we have seen the low for the year. that is correct. a barrel0 bucks represen

government debt the 10 year yield falling back to the 182 level, reversing most of monday's selloff. a little research for yields, but also some p trepidation before tomorrow. >> absolutely. but what we are talking about is going to raise interest rates or not, and the interesting thing is even if they raise interest anything does not mean for the long end of the curve. today we are seeing a rally in the 10 year treasury because as investors, out to the international investors are seeking you and they're coming to the u.s. treasury market. they are also coming to the u.s. corporate market as well. we have seen that in the flows. there has been hundreds of billions of dollars that have poured into the room treasury market because of the yield differential, but it's only getting wider. our first chart shows yields. you can see where we are now, we does retrace most of the year. the short end of the curve is actually up about 20 basis points or so since the lows that we have seen. the low end of 25 basis points. we are seeing those pressures for the long end of the curve to stay well en

joe: it didn't feel dramatic at any point, but after a string of gains, we had a real selloff. alix: you could see it starting u.k..he miners in the that spread over here to the u.s. in particular, the u.s. metal and mining etf, falling the most since 2011. not sustainr could the rally. joe: japanese borrowing costs, sovereign debt, the yields continue to collapse. this is a chart of the four-year bond. rate -- 40-year government bond. it's continuing with disappointment and growth and inflation. scarlet: in currency, speaking of japan, the yen getting a safe haven bid for the second day, stronger than 15 of the 16 major currencies. the pound had the biggest decline and a most two weeks. all of that stemming from the commodities market and the continuing route. you had oil at one point breaking above the 100-day moving average, but could not sustain it, then declined over 4%. goldman sachs saying you have to short copper, saying it could fall another 20%. squeeze, a major short no notes said the rally was sustainable. you saw it play out there. blame chinesean retail investors

accelerating commodities selloff . all three major averages are trading lower now. the nasdaq losses have accelerated, down nearly 1%. same goes for the s&p and dow. energy shares are doing the worst today. energy shares as a group are down 2%, followed closely by material financials. at the same time, we have seen more selling in stocks, we're seeing more buying in bonds. rates are going lower today, 1.87%, despite the fact that we heard from the federal reserve's james bullard today that he thinks it is more likelier than not that we will see a sooner increase in rates, but that is not pushing a great in the treasury market today -- p ushing up rates in the treasury markets today. we are seeing a steep decline in oil. leg down coinciding with the leg down in stocks, breaking below $40 per barrel for wti. earlier today, we got a weekly inventories report that came in with a higher than estimated bill. gold is also moving down today. that is a split from what we've seen recently. recently, when we have seen selling in stocks, there has been some flow into gold as a

i is set cause a real selloff in treasuries. caused a real selloff in treasuries yesterday.es, big gains overnight in asia. index isee the nikkei up 4% as was the shanghai in china. let's take a look at the yen. this has been another haven where people have gone to hide. it's getting weaker and weaker the last couple of days against the dollar. john: the yen goes south and bond yields go north in europe and equity markets in europe continue their march. futures are slightly negative in new york city. equity markets in europe march on. mark barton joins us from london. a five-day winning streak, what do you make of it? mark: we are up as much as 9/10 of 1%. we have not had a five-day winning run since you are back in london on october 9. you are not even thinking of going to new york. appetite for risk increases and european equity markets. this is a special chart of the stocks 600. i am looking at the 50 day and 500 day moving average. yesterday, it crossed above the 50 day moving average and it closed above it. are is important but we below the 200 day moving average. stoxx

even he will say this type of selloff we have seen requires a bounceback. matt: let's listen to that interview. >> from here to the bottom of the cyclical bear market we expect it will be larger than that. i actually think that the load that we put in 2.5 weeks ago is pretty solid in that a bear market rally is underway. 20t could take us of to the .60 range. that would be a 12% bear market rally. so he says we did go up to 2060? >> he takes a lot of factors that go into the models that say this is why we will go back to where we are. when you look at timeframe of where that could happen it depends if there's conviction buying. it is interesting when you look at what is happening in the market. there are signs that this is not just a short rally, short stocks are up .5%. there are some signs that maybe people do want to legitimately own equities for various reasons. maintain all theses underlying the market, and we had trouble getting down to the 1600 level that he wants. asset prices have gone pretty high and we have to get a turn back into more reasonable

the big movement has been in sterling which has rebounded since the big selloff. are you feeling about the uncertainty ahead of the june 23 elections? >> it is uncertainty and you can't pretend the uncertainty does not have an economic impact and it will have an economic impact. i don't think it will be enormous, but there will be -- decide to put investment decisions on hold until they know the outcome of the referendum. it is possible that sterling will come down with pressure. under further down pressure, that could add little bit to import prices, which could put some upwards pressure on core inflation. there are economic nuances that we have to be wary of. mark: have you changed your thinking in light of the upcoming referendum? cap you change the balance of how one should weigh their part olio's or not? >> i don't think that we have overall, to be honest. when you look at the various scenarios that could come through after the referendum, depending on what the result is, you might try and jump to a conclusion, and then you step back and say, that is not nece

as we see stocks selloff, we are so-calledns in the safety areas. gold is going higher in today's session. we are seeing treasuries go higher in the session. you heard mark talk about the currencies, where the yen has been gaining strength. another area where people flock as they perceive areas as more safe. seeing declines in travel stocks, airline shares selling off today. delta, american airlines, united continental going lower. we are seeing it spread to other types of travel and leisure stocks. .oyal caribbean, marriott trip advisor. one exception, wynn resorts is trading higher after it got an upgrade from morgan stanley. it's interesting that even within travel and leisure, there is a resilient stock. you so much. thank let's check -- check in on the bloomberg first world news outside of the events in brussels. i want to bring in vonnie quinn. vonnie: in a few moments president obama will be delivering up televised speech to the cuban people. he met with raul castro and spoke with reporters afterwards. mr. obama made it clear that they did no

selloff, and slumping growth in china, a key trading partner for many african nations.t the bloomberg africa and economic summit. africa's challenges and potential solutions. talk about the africa rising narrative. is it dead? is it forced? what is going on and what can we expect? >> i always said there were 4 drivers, recycle, politics and policies, demographics. i think the super cycle is on, you now need the policies to address that and that is probably what you are not getting it some places. this is the key thing going forward, the key policies governments will put in place. i think the entrepreneurship is still there and we have everything, still a very bright future in terms of development. >> you have done a lot of research on the relationship youeen china and africa? do think the african economy has materialized in china? are they reaping the conferences are being far more did -- far too dependent on one country? it is something i have been looking at for a while has been how china has been research invested growth model. what you've seen since 2000 until now,

but the company is rising been selloff, the commodity the plunge in emerging market currencies and slumpingwth in china. a key trading partner and source of capital for many african nations. at the business and economic a panelthere was discussion on challenges and potential solutions. wheel was talk about the africa rising narrative. we need to ask the question, is this dead, is it forced? what can we expect? >> there are for drivers for africa rising, commodities, quality control issues due to modernization and promotions. you now need the politics to address it. you are notably why getting at some of the places. this is a keeping going forward, the policies that government will put an place. i think the entrepreneurship is still there, and we have everything to have a bright future in terms of development. >> you have done a lot of research with the relationship between china and africa. do you think the african economy , are they doing anything to find markets? we talk about headwinds, china in the last decade there is a gale force headwinds. something i have been looking at is how chin

stocks selloff part of it today. oliver: some stories have changed from recently and some stories are very much the same. if you look at what is losing today, you have energy, you've got materials, you got industrials. that is kind of important because those are the sectors that have actually done pretty .ell off the february 11 lows those are the ones that people are gotten into and got up over the past week or so. especially the energy-related stuff was to a good degree short covering. how long can that last? maybe we are starting to see that fate off a little bit. the short interest in those sectors was building up as they were getting covered. you have the same story on some of these very defensive sectors. staples, utilities, telecoms, those are doing well today, holding up the market. that is the way it has been since the start of the year. david: information about chinese exports fell the most in six years. what effect is that having on the market today? oliver: i think he definitely has some effect, and usual

the commodity selloff, and slumping growth in china, a key trading partner for many african nations.the bloomberg africa and economic summit. africa's challenges and potential solutions. >> we want to talk about the africa rising narrative. is it dead? is it forced? what is going on and what can we expect? >> i always said there were 4 drivers -- recycle, politics and policies, urbanization and demographics, and entrepreneurship. i think the super cycle is on, you now need the policies to address that and that is probably what you are not getting it some places. this is the key thing going forward, the key policies governments will put in place. i think the entrepreneurship is still there and we have everything, still a very bright future in terms of development. >> you have done a lot of research on the relationship between china and africa? do you think the african economy has materialized in china? are they reaping the conferences are being far more did -- far too dependent on one country? >> it is something i have been looking at for a while has been how china has been research i

challenger bank which was launched in 2010 slashed its ipo by a fifth last month after the selloff in financials. >>> some profit taking among the banks this morning. this after the stock 600 europe banks closed up by 5.6% last week as a whole. that's the best week in over a year. paul cavanaugh is director and ceo at petronas partners. so the stoxx europe 600 banking index seeing its worst streak since 2008. looking at the ecb potentially moving further into negative territory on deposit rates and more stimulus as well. what will the impact be on the banking sector? >> the two fears for the banking sector during 2016 is what the central bank will be doing with deposit rates. the expectation this week is that there's a further ten basis point cut to deposit rates. that clearly impacts on bank margins. goldman sachs sa goldman sachs highlighting for every 10 bonus patienoints, the anticipate 2%, 3% per share. are there further 10 basis points declines or is draghi doing to be a floor under rates or introduce a tier system under banks excess reserves against those he would like being he

the remains hold for earlier rate hikes in the u.s., given the economic indicators, and also the selloff in the year have been quelled somewhat, central banks are trying to move to ease the concerns, hopes for extra growth measures in china that we might get further bounces. >> and ram mein, what can you t us about that? >> the dollar/yen, interestingly, at one stage, rose to 112.45. to april as being viable for rate hikes. recently, some federal reserve officials giving out hawkkish comments on interest rate hikes. that's leading to the dollar being stronger against some of its major peers holding steady. let's look at how the other indexes are trading. seoul kospi down 1/3%. china, all markets open in an hour and a half. now, domestically, investors will also want to take in the latest monthly economic by the cabinet office. it downgraded its assessment for japan's economy for the first time in five months. today, again, finance minister and doj gov awill be grilled. some are urging caution about raising the consumption tax next year. so a lot of focus on that sector as well. back to y

the markets reacted with a little selloff in the dollar. on the other side we saw an increase on the stocks in wall street. >> we will talk in just a minute. thank you so much for this update. the u.s. government accusing folks wagon of deceiving american consumers. the german carmaker admitted to fitting it so-called clean diesel with commissions cheating -- emissions cheating software. this is on top o of the u.s.. justice department s sued for violating environmental laws and comes as a bw recalls over 5000 electric vehicles in the united states. a battery problem can cause the engine to stall. joining me now, daniel from our business desk. it seems like the dream of being successful in the u.s. for vw is going to remain a dream? daniel: what they wanted to do was compete on the same level as u.s. manufacturers in the u.s. market and it seems that is not going to happen. they are third in european carmakers in the u.s. let's look at how much volkswagen sold compared with this year. a drop of just over 13%. it's not as though americans we

that is what helps and enables the selloff that we saw over than last 18 months.notbout to face -- i am saying that concentrated equity portfolios should not be a good and consistent part of investors portfolios, they should -- however, if you look at where most of the money has gone in passquity market, it is to the s&p 500 portfolios. from a valuation standpoint, this tells me that i like the blue more than i like the white, and by the way, if i am wrong, ,ou are going to do really well so it's s&p 500 continues, let's say it is up 10% this year, i think high-yield will be up 10%. about, when wonder their default rates here? this is great as long as you have a steady default rate, but if it is i mean, that would make sense and that would also explain this climb in the yield. doug: we have seen a small increase in the default rate and we have seen a huge increase in the pricing in the future default rates. that is what happens, so if you look back in time, the correlation between the actual default rates and the written on nonexistents almost . the market realize

selloffs today in asia and plus mark's cross europe are also trading down right now.estors around the world are waiting to see what the federal reserve here in the united states has to stay about global economic growth. now, key committee meets today and tomorrow. we're back in a moment. time now is 4:57. >> we want to know why all this happened. what caused this. we all know. >> five unanswered questions following ambush of prince george county police officer and alleged gunman's family speaking out saying they, too, are in mourning.

. >> the initial reaction in new york was a little bit of a selloff as we saw there. mixed closing. but then a more measured reaction took place kind of leveling things off a little bit. let's have a look at how the nikkei. what may hold the investor's attention, pretty gains to the yen, 112, in fact, the dollar gain gained, despite the gop political risks. they tend to pile in, such as the yen, not so much, which may lend to buying incentive for investors here, especially for exporte exporters. we'll keep track of that. the nekkei is down, that may provide further incentive for investors to snap up some of the sold shares. that may come from energy and commodity, which since mid february, steadily risen on the back of higher oil and commodity prices as well. crude was up again on tuesday, and more than 50% since hitting its low back in january. that's some media reports saying they may sign a deal capping the output next month. that's without iran taking part. iran has been trying to increase its oil production output since the sanctions were lifted against it in january. so a lot

whether that's led to the selloff or not, it certainly has helped strengthen the u.s. dollar, and that's something multinationals are still dealing with, hence nike, general mills this week. >> i think the fundamental reason for these disagreements between certain fed members, and there was a great debate on "closing bell" yesterday, but i think the main reason is there's a debate between them about how much they should be taking account of the foreign situation. i think domestic data continues to still be pretty supportive, and perhaps they should have already hiked in march or perhaps they should hike in april. even yellen has decided to start to take in kind of general fears about what's happening to global growth a little more strongly than they had done last year. >> the only thing i would say is pay attention amid the cocoughny of fed statements to the three core fed members. janet yellen, stanley fischer, and new york fed president dudl dudley. that's the core of the fed. ultimately, that's who's making policy. >> more comments from bullard today as well. >> now

the playboy company is considering a selloff. it is best known for its iconic men's magazine, but is struggling to keep up with free pornography online. it made headlines last year when it decided to stop featuring naked women. the company could be worth around $500 million. that is all of your business news. phil: i have nothing to say about that at all. thank you. three days after barack obama wrapped up his cuban trip, the country is set to welcome the rolling stones. the band arrived in havana. the historic show will be free of hundreds of thousands are expected to attend. they will play at a sports complex in havana and fans started queuing hours before the gates opened. they will be the first major western rock 'n roll band to play in cuba since the 1959 revolution. from cuba to rome, let's go there live where pope francis is taking part in one of the most important ceremonies of the christian religious year. going to leave you with these live pictures from rome, maybe talk you through some of them and see you at the top of

the global rally maintained momentum on faith that the selloff was overdone.or trump and clinton. the front runners strengthen their grip on party nominations. thethe market priced in possibility of a trump presidency? blackrock predicts a brexit would be bad for britain. we speak to one of the authors of this report. welcome to "the pulse

shanghai says the worst is over for chinese stocks after panicked investors caused the world's deepest selloff. 5.3 trillion dollar market will rebound as much as 20% in the short term. they'll get has revealed it is under investigation. the company declined to say what the inquiry was about. from anseparate existing investigation into a company they'll get bought last year. it is also facing questions over its performance and its ability to cut debt. fell more than 18%. the u.s. presidential hopefuls are gearing up for super tuesday . about half of the delegates needed for the republican candidate to win the nomination are at stake and about one third for democrats. donald trump and democratic leader hillary clinton seem poised to win in landslide victories. anna: we have had a number of big u.s. voices overnight giving their thoughts in the asian session. u.s. secretary adding his thoughts to the mix. overnight.t data china assure them that there was no plans or needs for currency devaluation and gave strong commitment to reforms. can -- concluded his remarks. recent market turbulence would

this is the stoxx 600, the selloff now more pronounced. certain to drop, not by a huge magnitude, of the euro is weakening. there have been attacks on the belgian metro system. in brussels. ryan: the belgian business daily is reporting that they heard an explosion at a brussels metro station. we're also getting reports from other media that they see smoke emerging from the metro station in brussels. guy: this is very close to the center of the eu district. ryan: it is. guy: and that is quite interesting, because that brings it front and center. ryan: that's right. it's also further evidence, if you will, although it haven't seen any officials calling it a terrorist attack, we will get an update any moment -- guy: brussels metro are saying all stations are closing. ryan: this obviously follows the attack we have been following for the last hour. three bombs found at the airport, one went off. guy: let's go to brussels -- jones hayden is standing by. we're seeing this incident spreading to the center of brussels? jones: that's right. there i

the maker of cheerios attributed the lagging sales to the selloff of its green giant business and the strong dollar. the company did manage to beat its earnings targets thanks in part to cost-cutting programs. general mills reaffirmed its guidance for the year and said its focus is going to be on grows that revenue. shares up a fraction at $61.01. >>> a robust holiday shopping season lifted sales and profit at fashion retailer, francesca's. the results came in above street expectations. the company also added $100 million to its share buyback program and those shares pumped more than 6% to $18.44. >>> virgin america's shares soared today after it was reported the airline is exploring a sale. of what is not exactly clear and virgin isn't talking at all. amid the silence, the virgin america stock took off up 13%. to 3472. >>> how about pinnacle foods? they fell today after the maker of duncan hines products said the ceo is going to leave to become the ceo at coffee maker keurig green mountain. the ceo expected to switch companies by the end of april. meantime pinnacle has begun looking

january, and we'll look at that in a second and recently mcdonald's has been the beneficiary of the selloffar. the dixie here is the u.s. dollar index is down 3.5% from march 1st from its highs, look at the range that dixie has traded in over the last year, high above 100 and as low as 94 and seems to have found a little support and trading stocks off of, you know, intramonth moves in the dollar probably is not a great strategy and can provide a little volatility. this is the last month. mcdonald's versus the dixie. look what the dollar has done and look what mcdonald's has done. seems fairly correlated. this is the one-year chart of mcdonald's. we talked about it consolidated. made a new high early this year, consolidated again and higher's the move that i think has a lot to do with the dollar. here's the thing about mcdonald's. trades at 23 times forward earnings that are only going to be growing to the high single digits here. it is an expensive stock for all intents and purposes. report q-1 earnings on april 22 nd you know a lot of shifts in the menu have caused people to get bullish ab

petaluma the recent -- at hanson toyota in petaluma the reason for the empty lot isn't a massive selloff. employees have passed 150 cars, close to the rest of the inventory to, get them out of the low lying parts of the lot. >> i was out here about 10 or 12 years ago and it was over waist deep when we were trying to move some of the cars. >> reporter: employees are keeping a close eye on the petaluma river and emergency alerts like this one. >> so we watch those two points. when they start to flood their banks, we know we have a fairly short window of about an hour. >> reporter: people are playing a waiting game waiting for this flash flood warning tocks fire. andria borba, kpix5. >>> we will likely see a lot more scenes like this in the coming days. this mudslide is on summer home park road and forestville. the road runs alongside the russian river. joe vazquez tells us if this rain keeps up, it could spill its banks for the first time in years. >> reporter: right now the russian river is well within its banks, but it is rising and sonoma county official warn that they expect it to peak

that was reflected in a sustained selloff in the pound, against the euro.etition of that seems likely in the near term. that said, some of the negatives are already in the price, so if anything, unless we see a very significant swing in the polls, the pound downside from current levels did not exceed what we have seen so long ago. >> lots of people talking about the future of schengen and the political pressure that some of europe's leaders are under. how do we see the euro trade and what does this tell us about how people are perceiving the euro, a safe place to put money in the euro? >> what we saw yesterday was the euro not performing well at all. you can explain that by saying that concerns about schengen and the e.u. have been going on for a little while. they have been going on for a little while, perhaps this brings it to a head. i think positioning explains why the euro did not perform well. if we go back to about a year ago, when the euro started to perform well when we had risk off events, that confused the market at the time, but we must remember

that was reflected in a sustained selloff in the pound, the dollar, against the euro.etition of that seems likely in the near term. that stops at some of the negatives are already in the price, so if anything, unless we see a very significant swing in the polls, the pound downside from current levels did not exceed what we have seen so long ago. >> lots of people talking about the future of schengen and the political pressure that some of europe's leaders are under. how do we see the euro trade and how does this tell us about how people are perceiving the euro, a safe place to put money in the euro? >> what we saw yesterday was the euro not performing well at all. you can explain that by saying that concerns about schengen and the e.u. have been going on for a little while. they have been going on for a little while, perhaps this brings it to a head. i think positioning explains why the euro did not perform well. if we go back to about a year ago, when the u.s. started to perform well when we had risk off events, that confused the market at the time, but we must rememb

i believe recently, mcdonald's has been the benefit of the selloff of the dollar.k at the range that the dixie has traitded in the last year. it seems to have found a little support there. i think trading stocks off of entry month moves on the dollar is not a great strategy, can 3r0e6d a little volatility. this is the last month of mcdonald's versus the dixie. this is the one year trend on mcdonald's, that was that trend we talked about that consolidated, made this new high early this year, consolidated again, and here is the move i think has a lot to do with the dollar. here's the thing about mcdonald's, it trades at 23 times forward earnings, it is an expensive stock for all intents and purposes. we know a lot of shifts in their menu have caused people to get bullish about it. but if comps were to change, if the dollar were to rally, mcdonalds at 23 times could be expensive. you might want to think about low employed volatility options. here's the trade that i was looking at in june, you could buy the june 120 call for $6. i know that sounds like a lot of premium