currency made u.s. goods more expensive while weaker growth in the europe or japan for example reduced the opportunity for made in america products also going back to lots of american companies that speeded up purchases at some point during last year to avoid the repacked contributed to the widening of the trade gap so it sounds like some policies at loggerheads there with the tax credit for stimulating growth and jose there's talk about a nearing trade deal between the u.s. and china what would that do to the deaths of potentially. are disappointed stephen according to what we know so far the gene is focusing most of the attention in promises to increase the buy in of more u.s. goods and services which reduce the trade gap if they materialize it but these increases will not be immediate and probably will to be gradual over the years which also generate a lot of other questions also some critics say that the negotiations are focusing too much on reducing the trade gap and not so much in tackling the structura

u.s. president donald trump who claimed that slumping tariffs on a range of imported goods would make it go away the comments department said it almost nineteen percent jump in the deficit in december contributed to a shortfall of more than six hundred billion dollars last year the u.s. posted a record trade deficit with china mexico and the e.u. . donald trump's global trade offensive has failed to rein in his country's spiraling trade deficit last year washington impose tariffs on about half the goods imported from china to force beijing into negotiating a new trade deal but china responded with retaliatory duties on u.s. goods many american businesses and consumers are now footing the higher bill for imports while slowing global growth and the stronger dollar weigh on demand for u.s. goods and the trade imbalance remains as reflected in the latest figures last year the shortfall with china served almost twelve percent to a record four hundred nineteen billion dollars the deficit with the european union which is also in a standoff with washington also jumped almost twelve percent to one h

and china are closing in on a trade deal with beijing offering to lower tariffs on certain u.s. goods>>> basic resources leave europe higher while u.s. futures rise following gains in asia as hopes rise end to a trade war. >>> new lawyer carlos ghosn says his team will adopt a fresh legal strategy as they defend the auto executive against financial misconduct charges. >>> and china finalizes regulations for technology exchange in shanghai as ride-hailing app lyft kicks off the 2019 ipo race and files to go public ahead of rival uber. ♪ >>> good morning and welcome to "street signs. as you can see behind me, it is pretty much a sea of green for european stocks this morning following asia higher. and this comes after reports that the u.s. and china are closing in on a trade deal washington -- the washington journal reported that the two sides may agree to a formal deal in mar-a-lago as soon as later this month that could see most or all of u.s. trades lifted as i said, most stocks are trading higher we had a quick look at the sectors momentarily, but the key here is that after last week

has tariffs ready to go on a total of twenty billion euros worth of u.s. goods should trump act on his threats to impose punitive tolls on european cars that would hit jeremy the hardest by europe has been wholly focused on the brics it mess for months now these issues have fallen through the cracks. meeting he's the chief economist. and joins us now. all we hear is briggs it breaks it breaks it what are the challenges is you're facing right now and does it need to focus on. well brooks it is indeed the biggest near term challenge and if one breaks it goes wrong then the recession risk in europe would rise beyond the key issues our relations with the us especially if you think the trade conflict and then we of course as almost always have the italian problem where the government is slowly slowly but unfortunately going the wrong way with its economic and fiscal policies. it breaks it goes wrong that probably means a heartbreak that with no deal the new survey just out today shows that german businesses overwhelmingly say eighty five percent of them that the e.u.

u.s. dependence on imported goods a white house correspondent can be helped that has more. the report by the u.s. commerce department stands in stark contrast to what president donald trump said just days ago on the use or trade deficits were down last month there was trying to find out why what would take him in a lot of tariff money and it's go right to the bottom line and it has reduced the trade deficit so in reality new data shows the trade gap between the united states and china in particular has widened last year by forty three billion to four hundred and nineteen billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped. and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar high their numbers not seen since the global financial crisis of two thousand and eight that means quite simply that the united states imports far more goods and services worldwide that it sells this despite promises made by the u.s. president on the campaign trail in two thousand and sixteen th

billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped. and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar high their numbers not seen since the global financial crisis of two thousand and eight that means quite simply that the united states imports far more goods and services worldwide that it sells this despite promises made by the u.s. president on the campaign trail in two thousand and sixteen that his policies would put america first in the global marketplace the u.s. is currently embroiled in a tit for tat trade war with china posing tariffs to more than two hundred fifty billion of chinese goods china hit back with tariffs on a hundred ten billion of u.s. products as the two sides continue to negotiate trump has delayed his threat to impose tariffs on two hundred billion more of chinese imports in the u.s. and in september the white house released this video arguing the tariffs have already had a positive impact we're changing things and we're changing them fast but the comm

billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped. and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar high their numbers not seen since the global financial crisis of two thousand and eight that means quite simply that the united states imports far more goods and services worldwide that it sells this despite promises made by the u.s. president on the campaign trail in two thousand and sixteen that his policies would put america first in the global marketplace the u.s. is currently embroiled in a tit for tat trade war with china posing tariffs and more than two hundred fifty billion of chinese goods china hit back with tariffs on a hundred ten billion of us products as the two sides continue to negotiate trump has delayed his threat to impose tariffs on two hundred billion more of chinese imports in the u.s. and in september the white house released this video arguing the tariffs have already had a positive impact we're changing things and we're changing them fast but the comme

dollars worth of goods in goods that a five point six billion dollars worth of goods are going to lose that competitive edge in the u.s. basically goods from countries like mexico with which the u.s. united states has a featured agreement so that's a point that they've missed and that's considerable so i spoke to the head of the exporters body in india and mr jessup so high he told me that good textile goods a few engineering goods and moving goods are likely to be affected because of this move but he interestingly he did mention the fact that it's also the u.s. the american downstream companies which actually import a lot of semi finished goods from india who are going to suffer because of this and they're buying goods on the cheap from india and now the prices are going to go up he didn't mention that it's going to be a marginal impact with one to three percent that it's been now put on all these goods but definitely is going to have suddenly a considerable impact when you see the kind of competitive competition in indian from going to use in the u.s. will that hurt narendra modi in the upcoming election. well the o

and contribute over $35 billion in u.s. goods that are exported. there is more to that than corporate investment. there's infrastructure, p3, green fields, all part of the way global investors can participate in the u.s. economy and why the u.s. continues to be the world's destination for foreign direct investment with 33.7 trillion having been invested in the u.s., more than any nation in the world and today, want to talk about the functionality for how we can do that at a granular level at the state and local municipalities. today is different in programming and we will talk about the environment. not just nuts and bolts, but the environment and the economic environment where we talk about what the environment is from a workforce standpoint and then we talk about trade and how trade is the incentive for foreign investors in the u.s. and we have a great crowd gathered to date in order to do this with a substantive discussion and we enable future dealmaking. if there is one deal that comes out of this today, we've been hugely successful and i encour

u.s. trade deficit in goods actually measures at eight hundred ninety one billion dollars a ten percent annual increase the yearly trend seems to be building by the month in december the monthly trade deficit number just for the sixteenth was sixty billion dollars that's a nineteen percent increase from november notably the u.s. trade deficit with both china and the european union grew to roughly four hundred twenty billion and one hundred seventy billion dollars respectively. and speaking of those trade fights the organization for economic cooperation and development where the o.e.c.d. has lowered its growth forecast for twenty nineteen once again citing those trade conflicts as well as the ongoing brecht that bungle as factors the o.e.c.d. s interim outlook now forecast global regrowth for this year at three point three percent and twenty twenty growth at three point four percent analysts there shave point two percent and point one percent from both figures and their forecast from last november more dramatically germany's twenty nine thousand growth forecast was have to. have down to the poi

a has offered to buy $1.2 trillion in u.s. goods. ump has told his team he wants more. china passed a law changing foreign investment rules. the u. wants to be able to retaliate if the lawn's dot change anything. the it remove most of its tariffs. china wants them gone. disappointed him in the pa past, but the deesca good thing! the sensitivity of market decision makers to be up and down news from the trade discussions is not good for them ec >> there are still questions about how the deal will address criminal charges agast chinese telec te or cybersecurity. but u.s. intelhege in 2020 election. >>> new market trends are also nderging. majores are recovering from the rocky end to 2018, but santoli explains. >> even before wall street struggled from a five-month high, the performance of the h groups of stocks leading andany others wallowing. notes has triggered ave and debate about what it means for the long-term health of the market. the tape has shown a strong preference for big stocks over small ones,ic org companies and groups offering a reliable stream of cash flow

u.s. without tariffs in twenty seven turkey exported one point six billion dollars worth of goods. system let's speak to. professor and dean at the school of international affairs he's joining us via skype from india so of course india one of the countries targeted by the u.s. president. for exporters in india but are you surprised by this given trump's trade views on india and india's own recent protectionism. no it's not a surprise there in because of a nod from ease and isolation is kind of protectionist and believes in economic nationalism or not mocha first and he's a departure from previous u.s. presidents both democratic and republican who you'll still sure some degree of magnanimity and generosity intrigue even though they also had complaints towards developing countries like india in the past they would understand that you know we have some compunctions we have a low income country still developing country and we cannot be on an equal footing with rich countries when we do trade so the whole idea was to level the playing field by giving us some concessions through the g.s.t

u.s. dependence on imported goods are white house correspondent can really help it has. the report by the u.s. commerce department stands in stark contrast to what president donald trump said just days ago i mean you saw a trade deficits were down last month there was trying to find out why well we're taking a lot of tariff money and it's going right to the bottom line and it has reduced the trade deficit so in reality new data shows the trade gap between the united states and china in particular has widened last year by forty three billion to four hundred and nineteen billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar high their numbers not seen since the global financial crisis of two thousand and eight that means quite simply that the united states imports far more goods and services worldwide that it sells this despite promises made by the u.s. president on the campaign trail in two thousand and sixteen th

reporter: imports from china surged last year, up $34 billion rom the year before, while exports of u.s. goods plunged 10 billion. so muchraffic has been coming in from china as companies front load ahead of potential tariffs. it's been gat for the por but gummed up the works. >> trucks are waiting longer, railros are repositioning equipment. cargo owners are carrying a lot of costs with e advance of inventories. having all these imports come in and then sit,e've got thousands of containers of brake pads, k boards justwaiting. >> reporter: the institute of international finance estimates u.s. companies are losing $40 billion a yr because of the tariffs, and the ripple effects extend far beyond china.e, for exam last month at the world ag expo in california, alfalfa farmer complained his hay from utah couldn't get to saudi arabia. >> we had contracts sigd in june and the hay still hasn't moved. a lot of it has been paidor but they're still sitting in t barns because the ship movement is pretty slow a >> reporter:ther reason exports are down is because of china's new environmental policies which

u.s. needs good relations with the south asian nation as a balance to china but some exporters there are now there now stand to pay more for the change going into effect in sixty days it's a move that has observers scratching their heads. one hundred and ninety million dollars in import fees saved on five point six billion dollars in goods the trade concession known as the generalized system of preferences or d.s.p. was meant to help developing countries like india compete in a crowded u.s. market now it's drawn into present trumps anger over u.s. trade deals. i think if it is imposed which i am hopeful it would not be then we would become to that extent uncompetitive indian products will become uncompetitive in a way the move isn't surprising india has kept trade barriers high and that has encouraged foreign businesses to build there and east its weak manufacturing sector trump has long complained of indian tariffs and trade talks between the two countries fell apart last year and then this year india clamp down on e-commerce wills forcing american players like amazon and wal-mart to recons

lowering tariffs, china lowering tariffs on u.s. goodsg buying more american products including large purchase of natural gas, dispute mechanism for u.s. companies and the u.s. removing tariffs on chinese goods. new report is predicting that a deal would get done with some tariffs remaining in place going in 2020. joining me right now gary b. smith, would this be a big deal for markets? >> well, you know, i certainly think the perception of deal would be good for the markets and reality even if all the tariffs imposed or tariffs removed, you know, i think the effect on both -- we are talking about almost 30 plus trillion in gdp, the effect will be minimal but it's kind of a feel-good news, i've always discounted the effects of the tariffs, look, i will take any good headline news. maria: feels like it's one to have issues that keeps coming up assort of an uncertainty or unknown from the market, so once getting the clarity in place i imagine is a good thing. what about earnings? let's talk backdrop for a moment on stocks, earnings and the

u.s. policy decisions. nejra, good morning. nejra: good morning. about risk on, you mentioned the tripwires. for now, markets ignoring those as u.s. futures point higher. futures on a firmer footing. the big question is what kind of comprehensive trade deal does the u.s. and china come to? we might not get a further escalation, but are we going to see a rollback enough for markets to gain even more on the tariffs so far? you have president trump talking down the dollar, saying it's too strong. theaw it dip a little, right now pretty much unchanged on the index. we spoke to people on the show who talked about the fact the dollar should be weaker, but it is holding up so far in 2019. is it just there are not any options out there, particularly in the g10 with high yields of the dollar being appealing? if you are watching technicals, keep an eye because the dollar index is poised to make a bearish desk. meanwhile, cable on the front foot, up 2/10 of a percent. some of the hardline brexiteers may be considering options to support theresa may. headlines

slowing global growth and a strong dollar weighing on demand for u.s. goods last year the u.s. posted record trade deficits with china mexico and the e.u. . but police in kenya have broken a strike of ground stuff at the country's main international airport in the capital nairobi hundreds of passengers of face delays as flights were different diverted ideation units of the strike reserve the proposed take of earth can use that authority by the country's last making airline kenya airways. has opened applications for its new citizens income scheme residents who are less than seven hundred eighty euros a month old receive a prepaid debit card to pay for groceries bills and rent the initiative fulfils a kick out pain problems of the five star movement to reduce poverty and boost employment. afghanistan has been hit by a fresh wave of violence at least seventeen people were killed in a militant attack in the eastern city of jalalabad. early on wednesday with militants detonating suicide bombs before storming a construction company in the city's airport a five hour

u.s. government had said. it's right it has had good servers and storage you merril's and schooled these tragedies the u.s. government has never provided and everything is supposed to. that's why we posed these securities direct. the u.s. government is very low and for it to smell good company and it's probably. adrian brown has this update from shannon's and. well as up the ties war way has confirmed it's going to be filing a lawsuit against the u.s. government that was confirmed here at the shenzhen headquarters on thursday when they spoke to the international media they invited selected networks here including al jazeera we heard from six company executives we got legal opinions constitutional opinions and of course their views on security and technology the message that while away wanted to convey today i think was this they want to cooperate with the authorities in the united states but they're also up for a fight while way one sits day in court it's determined to get its staying call it wants to clear its name it believes it's bee

turkey exported one point seven billion dollars worth of goods under the program it represents only eighteen percent of all turkish exports in the u.s. and affects mostly turkey's auto industry yes decision to remove turkey from. preferential last fall as i'm good imposition last year i would tell you to tariffs on u.s. goods in response to american steel and alum minium tariffs. is a professor at the american university of a rock who fixes on us techie relations he says the chump administration wants to maintain the advantage it has on trade relations with taki turkey was one of the first countries that were hit with steel and aluminum and scrap mentals tariffs in the spring and summer of twenty seventeen and these have not been removed it looks like they're here to stay and much of it probably has to do with the fact that whatever advantages or whatever trade balances that the united states is maintaining with turkey and right now the numbers are pretty pretty close in the last three four years trade balance have been mostly on equal terms i believe the trumpet ministration from a purely commercial standpoint would want to maintai

range of imported goods slowing global growth and a stronger dollar are weighing on demand for u.s. goods last year the us are posted record trade deficit with china mexico and the e. . and this sounds former boss carlos ghosn has been delays from prison in japan after posting bail of nearly nine million dollars he's charged with underreporting his salary for years and passing on personal losses to noosa was to go was detained for more than one hundred days but maintains his innocence. it's a way has opened applications for its new citizens income state residents who are less than seven hundred eighty euros a month will receive a prepaid debit cards to pay for groceries bills and rent the initiative fulfills a cape town paid promise a five star movement to use poverty and boost employment. and israel's the hebrew university has unveiled more than one hundred manuscript pages written by albert einstein include handwritten mathematical notes from the one thousand forces that have never been shown before the german born physicist won the nobel prize for physics in one thousand nine hundred t

u.s. dollar is good for the economy. it is very important for that to keep going. he same front, a weaker u.s. dollar is great for the emerging market economy, giving them the much-needed relief. ramy: looking ahead to what has been happening in terms of the rally, how much further do you think we could go? we were talking with su keenan about how we have cross the 2800 mark on the s&p 500. that it has traditionally been a coming backof maybe from it. do you think we can push ahead? manager, i will tell you the market is expected to go higher. for 2019, it is pretty good. resolution war will improve the business confidence, improve investment. china is not doing too poorly. globally, the economic fundamental is reasonably strong. we do expect that to continue to drive the equity market higher. whether it will push through that level in the next two months or three months, we do expect the market to be reasonably supported without any exogenous shock. haidi: the perceived shift from financial risks to potentially, if not really leveraging, at least stability is what

u.s. duty free and twenty seventeen take the export of one point seven billion dollars worth of goods onto the program that accounts for nearly eighteen percent of all to exports to the u.s. and effects mostly to destry the u.s. decision to remove to the from the preferential list follows onco as imposition last year all vitaly churkin tabs on u.s. goods in response to american steel and add a minium tariffs. is a professor at the american university of rock the focus is on us to accumulations and he says the top administration wants to maintain the advantage it has on trade relations with to keep turkey was one of the first countries that were hit with steel and aluminum and scrap minerals terrorists in the spring and summer of twenty seventeen and these have not been removed it looks like they're here to stay and much of it probably has to do with the fact that whatever advantages or whatever trade balance is that the united states is maintaining with turkey and right now the numbers are pretty pretty close in the last three four years the trade balance have been mostly. on equal terms i

u.s. tariffs on chinese goods. bloomberg understands this would be the case if beijing follows through on pledges on intellectual property rights and buying more american products. china is reportedly offering lower tariffs on u.s. foreign --ds -- farm goods in cars. and cars. what do we know about how close we are to an actual deal? the fact we are talking about all these different trends and we are getting more and more sources telling us there are multiple fronts, it is a signal to the markets we are getting close. sources have told us we are closer to a deal. it depends, the sticking point to that is, how will beijing comply? what will be the schedule of lifting tariffs? will it be gradual to make sure beijing does comply? thent to point out, we have national people's congress spokesperson this morning come out and talk about new foreign investment. the reason i bring it up is because intellectual property has been a sticking point. what he said is that is going to be folded into that new law. the npc will be vo

billion it's a result of an increase in exports from china to the united states well exports of u.s. goods dropped. and the u.s. trade gap overall well it's swelled to a ten year six hundred twenty one billion dollar high their numbers not seen since the global financial crisis of two thousand and eight that means quite simply that the united states imports far more goods and services worldwide that it sells this despite promises made by the u.s. president on the campaign trail in two thousand and sixteen that his policies would put america first in the global marketplace the u.s. is currently embroiled in a tit for tat trade war with china posing tariffs from within two hundred fifty billion of chinese goods china hit back with tariffs on one hundred ten billion of u.s. products as the two sides continue to negotiate trump has delayed his threat to impose tariffs on two hundred billion more of chinese imports in the u.s. and in september the white house released this video arguing the tariffs have already had a positive impact we're changing things and we're changing them. but the commerc

we know a broad backdrop and there is an agreement on purchasing more goods and u.s.ompanies getting better access to china's market, but the big takeaway is right now, the trade war truce is being extended. and that is the bottom line for global markets and the world economy. as we approach the march 1 deadline, all indications, the risk has been shunted to one side. the u.s. and china, whatever way the deal pays out, they are on track to put the trade war on the back burner for now. >> is this a win for china? and to what extent does it relieve the pressure off -- xi? >> it is most heavily a win. the economy has been slowing because xi jinping and the government have been on this deleveraging push. added the trade war, the government is uncomfortable. they've had to step in and became obvious that the stimulus was coming back, so a big win for china. >> the federal reserve chair jerome powell says the u.s. economy remains strong, but dangers are brewing. in his semiannual testimony on the state of monetary policy, powell noted that the fed is watching the state of a

u.s. government is very good to come and. have . the latest u.s. commerce department figures show donald trump's trade offensive against china and others could be failing the u.s. trade deficit has blown out to its highest level in ten years and a u.s. congressional committee has been told the white house needs to do more to end the war in yemen the warning comes from members of the house of representatives who say the fighting could create long term instability and pose a future threat to the u.s. a palestinian teenager has been killed by israeli fire along the gaza border overnight and fighter jets later struck several sites belonging to her loss in southern gaza israel's army says it was in response to explosive devices being sent across the border fence almost two hundred palestinians have been killed along the gaza israel barrier since may last year thailand's constitutional court is set to rule on whether to ban one of the country's main opposition parties the thai rocks a charter party is accused of violating election laws for nominating pri

trade deficits and u.s. goods inside china. real good economic imbalances between the u.s. and china he promised to fix. if he makes progress on those, great, soy bean farmers will sell more soy beans, financial services companies will sell more financial services, both those groups will be happy with president trump. over on the other side of the ledger, there is the economic aggression and national security concerns, that's what's not really making great progress, according to my reporting. this is talking about chinese economic espionage, intellectual property, theft, forced technology, transfer. all the real national security stuff. inside the administration, there is a split between the people that care about the economic stuff and security stuff. they read those tweets by president trump. and the economic people are very, very happy. the national security people are really scared. >> so how much does president trump care about the national security stuff as you say? >> well, it's hard to tell. he talks about it all the tim

who giving testimony in congress talking about the tariffs on chinese goods still being open, that they are still an option for the u.se without a final deal, you can't take that leverage completely away. there has been so much speculation recently about potentially all these tariffs on $360 billion of goods on both sides being lifted as soon as there is an agreement. for right now, what we are hearing is that this is still on the table. caroline: great to get your perspective. daybreak asia is that 7:00 p.m. eastern. another day, another brexit vote. u.k. lawmakers vote on legislation to leave the e.u. at the end of march. joe: i will look at economic data at a: 30 a.m.. data,e: and more economic the numbers for u.s. producers press index for february also out at 8:30 a.m. eastern. joe: have a great evening. this is bloomberg. ♪ you. all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity,

good night from new york. cheryl: it is monday, marchth. the stage is set for a u.s./china trade deal, both sides agreeing to roll back tariffs, in exchange for china purchasing american goods and protecting intellectual property. nearly two dozen are dead after a massive tornado tore a path of devastation through the southeast. a desperate search for survivors underway right now. we're tracking a winter storm that has much of the east coast waking up to a total mess. and alexandria ocasio-cortez's latest push to get her own party on the green new deal train gets derailed with a "saturday night live" spoof and a poll showing voters are not on-board with the democratic socialist. >>> here's how your money is moving at 5:00 a.m. u.s. stock futures pointing up this morning, optimism over a trade deal with china. in europe, you can see green across the board as well in europe and in asia, let's take a look at those numbers in asia, the nikkei and shanghai up more than 1%. cheryl: asia moving on the big news, a report on sunday that we may have a trade deal, a huge story f

u.s. is promising, it's trying to get china to increase purchases of a bunch of types of goods to $1.2 trillionsix years, will those companies and production in the u.s. be able to ramp up. the u.s. can't promise that companies, it's own companies will sell to china. i think that's one of the bridges that needs to be crossed in these talks. gus: sarah, if other countries decide they are going to withdraw from purchasing the 737 max, do you think that the administration is going to have an issue with that? sarah: a lot of the talk since this latest accident with ethiopian airlines with the boeing plane is sort of the relationship between big companies and government. so i think we'll see a lot more discussion about that and where that's headed. vonnie: what happens next in the talks, sarah? we know there are some sticking points still and that potentially now any meeting is pushed off to june. do we know if there is any way potentially that might come back to april or may? sarah: right now officials are using videoconference rather than shuttling back and forth between the capitals. we know that

good for the whole world. must remember, after the u.s. it is europe.hat's really the big driver for the global economy at least up to now and then of course china and india catching up. but we have to look to europe to push the global economy along with the u.s >> mark, more broadly, just on equities globally and the long bull market we have had, does the length of the bull market itself make you concerned as to whether we're due a pullback or not? >> well, you know, i was worried about the u.s. until we've seen this big correction. must remember we have gone through a significant correction in the u.s. and that's very b l bullish in my view with the correction now we're back on track. so i think the u.s. economy and the u.s. market will continue to be doing very well and that's good for the rest of the world because there will be more and more people with money put in emerging markets. so i think -- generally speaking, we are in good shape now. >> as it relates to the u.s., mark, i remember i think you were in town last year and you were relatively op

u.s. factory and durable good orders for january. at noon, the president of brazil arrives to meet with president trump for a bilateral meeting, followed by a joint news conference. after the bell, fedex posting earnings. now it is time for bloomberg's first take. we are joined by our correspondenct and executive editor. this is the medium of the dots. many above, many below. the blue is the 10 year, neutral. >> it tells you the market thinks the fed is it neutral, not needing to go higher. the question is does the fed go lower. clot, you would have to noe a lot of dots down for rate increase for this year. it is not clear if they can do that. one does not matter. what will matter if jay powell says we are on hold, doesn't make missteps fervently, and gives the impression nothing will change from the fed this year and less there is a major change. alix: is the bond market leading the fed. that is the key question. have that we volatility, now a dovish message, so there is a since the market is in control on the stock market and bond

china have been able to agree upon broadly in these talks so far have been increasing purchases of u.s. goodshat it's an easy way to ease the trade deficit u.s. reporting shows that china is considering perhaps canceling plans for those purchases, but it also may just agree to buy different types of aircrafts. ♪ >> they are falling in premarket trading, losing in the first days of the trial involving its roundup weed killer, allegedly causing cancer. how bad is it? what happens next? >> it's a big blow for bayer. they are falling about 10% share price drop, a case that has gone against them in the u.s. there are 11,000 some more to go. this obviously increases the pressure on them to reach a settlement with the plaintiffs pursuing these cases, which could be costly. ♪ shares are down more than 20% in premarket after the company halted its late stage trials of an experimental alzheimer's drug. >> this is one of the last big, late stage studies in alzheimer's. it is something that biogen put as the centerpiece of its pipeline. it has fallen apart. it is something that they and a lot of investor

on his commitments. -- a biglso want time element of this deal is china increasing purchases of u.s. goods. i think he will want time for the trade deficit to start narrowing instead of expanding with china, to be able to say we have more soybeans being sold in china, perhaps more airplanes, manufacturing picking up from some of these increased purchases. vonnie: the news on boeing earlier, obviously you mentioned airlines impacting the stock. china does not rely on boeing. the chineseds, companies that have orders on, they will be fine. but it would be another twist of the knife, if china were to decide that it would not go ahead with any boeing orders. could that happen, will that be a next her move? sarah: airplanes are a sensitive topic. of valuethe top export from the u.s. to china last year. production facilities in places like south carolina, which support trump. definitely a sore point in the talks right now, i would assume, as china is now reportedly we looking at whether it would include at least the 737 max 8 airplanes that have been granted -- grounded, involved in these crashe