look at health care, biotech from a general perspective, they are underweight, very underweight biotech in particular look at m and a, some of the desperate deals announced. novartis makes an $8 million acquisition of a company, gene therapy company in april the company doesn't have approval for their product yet there's a lot of desperation with larger cap names. i look at gilead, there's a name that's going to have to make strategic. >> they did, made a deal. >> was small enough not to get juices going look at the way gene therapy drugs are -- >> so to the point -- that was not enough for investors for investors burned in the sector before because of fears about drug pricing concerns, war, whatever you want to call it, and then they are waiting for m and a, m and a happens, nothing happens to the stock for investors in there, didn't get much out of it, they are sort of like, you know what, why am i going to be there again. >> i hate to be the debbie downer in the story. >> hi, debbie, welcome to the desk. >> so the one big problem with the health care hideout from the trade war is tha

equities you're going underweight u.s.s at a time when everybody continues to buy stocks, or at least buying the same four or five stocks >> we've been overweight for the last 24 months we decided -- >> good call >> and a good call we decided to go underweight equities and overweight bonds, but on the bond side hug the yield curve. >> what does that mean go to the short end of the yield curve, buy the one to five-year bond and stay close to that duration so that if you do get in an environment where you get a rising rate environment on the long end, that you won't have a severe impact. if you're on the east coast of america, 5:34, it's a little early to talk about hugging the yield curve. sounds like you're making a safety bet >> we are just moving up the quality spectrum we want to be more safe and balanced within the portfolio. we are also advising investors to migrate more to value that doesn't mean you have to take all your chips off the table, but you want to perhaps start shifting >> but safe from what? what are you

seventeen first she started dieting then counting calories her portion strength and soon she was underweight but laney kept wanting to get thinner. i'd walk through the supermarket thinking i'll just rush through the supermarket and pick up only what i need. but sometimes i felt so happy here that i could have sat down for two hours and said to myself. i don't need anything. meanwhile leaning contrived normally and eat pretty normally to. lenny lives alone with her two cats she's a trained seamstress and a you tube post she visited pro and blogs during the early stages of her disease. it helps i don't idolize all that pro anna stuff like some girls did but i'd resist the pages now and again for motivation or inspiration especially the photos. then on one page i met a girl and we decided to lose weight together. last name they called us a twin someone with similar measurements that you lose weight with. us but what was it like having a twin are you still in touch. let the last time we broke was about two years ago. and then one day i saw a post on her facebook page. rest in peace. she just fe

underweight utilities, underweight staple.hese sectors they have their days on the big pull backs. you can see if you look at mast last week or any of these rally weeks, the cyclical sectors are leading the charge. like healthcare as well. that's performed well in the markets on the upside. we want our clients doing. it will be time to hide. it's now.ink haidi: scott thank you so much us.joining scott wren with wells fargo there with a look ahead what expecting. we're getting numbers, output coming 63.6 million tons. we're estimating a range between to 61.1 million-tons. addition to exceeding numbers reporting more output than the market expected. bloomberg is an interactive chart. tv go. with g you can also save those charts future reference. g tv go on your bloomberg. this is bloomberg. haidi: texas instruments slumped after hours. theresigned for violating company's code of conduct. issues personal behavior not the -- consistent with the company core values. related tore is not company strategy, operation or financial repor

then resting at home for another month with only water from the caves walls to drink the boys are underweight and exhausted they are being kept in quarantine because there's still a danger of infection. the relief is overwhelming parents aren't yet allowed to hug their children but they're happy to see them alive. the tiny navy seals who published these astounding images of the rescue and explained in detail how difficult and dramatic this mission really was the boys were taken out of the cave just as the oxygen levels became dangerously low they were sedated in order to prevent them panicking in the narrow underwater passages doctors monitored their condition and regular intervals along the route the tiny baby seals were jubilant that they were able to achieve what many thought was mission impossible side by side with international full and is. this unity is not only with chiang rai or thailand. it's a global unity. this incident was more than a lifesaving mission it's gone beyond that and it's the unity or all nationalities that. back home their friends eagerly wait for them and my friend d

motion clash between them and ministers like the chancellor, who are pushing for tight ties has been underweightrately hopes she can pull them together tomorrow and is already trying to sell the plan a broader. tomorrow i will be bringing my cabinet together to discuss and decide a substantial way forward. translation: it is very important what the uk decides in the next few days,. theresa may needs angela merkel as well as a cabinet. a different kind of negotiation was going on at home. whether the ta keaway going on at home. whether the takeaway was for boris johnson or not, he was tucked away with other collea g u es not, he was tucked away with other colleagues who backed leaving the eu, alarmed at the full proposals that number ten only shared this afternoon. rather than getting ready to rally around the p.m., seven brexit cabinet ministers have been gathering here at the foreign office, discussing their tactics and how they plan to push back. for true brexit believers, there is nothing to celebrate. plan that would see the uk signup to a common rulebook with the eu would hardly be leaving

there is even a device that rejects cans that are underweight.to another machine called the clincher and moving at the amazing speed of 140 cans a minute, the clincher puts the tops of the cans in place automatically. ♪ next along through of travel is the vacuum sealing machine. this receives the cans with clenched -- with clenched covers, sucks all the air out and seals the cans hermetically. without its benefits in sealing cans so no air can reach the betent, no food could preserved in this manner. rolling forward the cans pastor a washing machine. pass through a washing machine. then they are scooped up and tray. on a huge, cap like steam cookers tray ready to receive the loads of freshly-canned salmon. four one hour and a half, the salmon cook under heavy steam pressure. all day and night during the season, the canneries a beehive of activity. canning andleaning, cooking of various fridays of salmon. there are even floating canneries, ships that are equipped with canning machinery, traveling from place to place following the fish. ♪ constant

detail on the rescue underweight -- rescue operations underway. >>> we will have dramatic new video showing the moment a vta train collides with a car in san jose today. two people were killed in this accident. >>> thank you so much for watching. have a great night. >> like your suit. oh, thanks. got a couple new outfits for work. how does it feel knowing your fiancÉe's job is to go out and flirt with doctors, looking like that, while you sit here, you know... looking like this? she doesn't flirt with doctors. yeah. it's all very professional. you know when you bend over, i can see down your shirt? okay, good. speaking of new careers, how are things going with dark matter, sheldon? oh, yeah, i'd have to say it's the most exciting time in the history of the field. oh. what's going on? i started doing it. koothrappali: you know, the government funded the biggest experiment yet to detect dark matter. yeah, i've read about that-- they're sending research teams down into abandoned salt mines. you know, sheldon, if we apply to be one of those teams, we could be on the ground floor of something bi

there is even a device that rejects cans that are underweight.lled the clincher, moving often at the amazing speed of 140 cans a minute, the -- a minute. the clincher puts the tops of the cans in place automatically. ♪ next along the route of travel is the vacuum sealing machine. this receives the cans with clenched covers, sucks all the air out, and seals the cans hermetically. to this machine, developed by can manufacturers, we owe a great debt, for without its benefits in sealing cans so no air can reach the content, no food could be preserved in this manner. rolling merrily onward, the cans past through a washing machine. ♪ then, nimble rackers scooped -- scoop them up and place them on a cooking tray. ♪ huge cavern-like steam cookers stand ready to receive the tray loads of freshly-canned salmon. ♪ for an hour and a half, the salmon cook under heavy steam pressure, simmering in their own juice until done into a cream paste. ♪ all day and night during the season, the canneries are a beehive of activity. -- activity continuous cleaning, , cann

shares of ginnett were downgraded to underweight from neutral at j.p.n and that was the first sell equivalent rating in about two years. the analyst cites ongoing weakness and print advertising. the price target is $10. the stockun closed a that level at 10.28. >>> still ahead, a new type of whisy sour. >>>tu ky bourbon distillers have a 25% f tarifm china and they're bracing for a trade war hangover. i'm contesa brewer coming up on "nightly business report." ♪ ♪ >>> elon musk is sending a team of engineers to thailand to assistn the rescue ofcc that boy's er team trapped in a cave there. the thai government confirmed that musk's engineers may arrive tomorrow and they may provide services for locatio tracking, water pumping or battery power. the team and its coach were reported missing late last month and they were found earlier this week deep in a cave where the passageways are narrow and flooded with water. >>> satellite company echostar drops its bid for a european rival and that is where we begin focus.'s market echostar said it won't continue to pu

the stock rose a fraction to $169.57. 3d systems was downgraded to underweight from neutral at piper jaffray. the analyst there cites intensifying competition. the price target is 10 and the stock fell 6% to $13.17. >>> elf beauty was downgraded t. perf the analyst there cited challenging trends and increasef ta uncertainty. the firm says the small cap stock has become moreuncertain as a result. the stock, though, did rise a fraction today to $14.17. freeport mcmorran was upgraded to hold from sell at deutsche bank. the analyst cited the stock's valuation right now and the stock's price target now at $15.50 and the shares closed at $15.97. >>> still ahead, airline stocks take off, but will a renewed focus fuel prtues bring some ulence? ♪ ♪ >>> here's something we haven't seen in a while. a rally in the airline stocks. shares of american, southwest and alaska air all moved higher on better-than-expected second-quarter earnings. phil lebeau explains why from american airlines' operation center in rt worth, texas. ♪ ♪ >>> for all of the hand wringing by investors worried about airlines

with only water from the cave's walls to drink, the boys are underweight and exhausted.hey have been kept in quarantine because there's still a danger of infection. the relilief is overwhelming. parents are not yet allowed to hug their children, but they are happy to see them alive. the thai navy seals have published these astounding images of the rescue and explained in detail how difficult and dramatic this mission really was. the boys were taken out of the cave just as the oxygen levels dropped to a dangerous level. they were sedated in order to prevent them panicking in the narrow underwater passages. doctors monitor their condition at regular interviews -- intervals around the route. thai officials were jubilant that they were able to achieve whatat many thought was mission impossible, side-by-side with internrnational volunteers. >> this unity is not only with thailaland, it is a global unit. this incident was more than a lifesaving mission, it's gone beyond that. it is the unity of all nationalities. reporter: at their high school, their friends are eagerly waitin

we are underweight emerging markets.k that if we do have the worst case scenario in the trade side, it will really hit the emerging markets hard. and we have been underweight in the high-risk sectors of the portfolio. and we have been on all sides uprooting the quality of the portfolios moving from the corporates to the treasuries, rates within treasuries are more attractive than a year ago. so we have been increasing the quality in our portfolios. >> interesting strategies and thoughts ahead of this big earning season to come thank you, both, john and jay for joining us >>> meeting in as pretty of a place as there is in this country, sun valley, as bidding wars heat up who is going to get their honds on sky or fox or skyfox? we'll have the latest and here about it once in a while, an alligator on the loose courtney is averting her eyes here. >> i can't look. >> this is in a -- she's the retail reporter. it was in a walgreens parking lot in texas you'll be flying there later coming up, a professional gator wrangler it's

and tour de france as well, which of course is underweight too. will have business in a moment. hello again. yesterday's fresher weather brought an end to a run of remarkable heat, really. somewhere in the uk over the last six days has seen temperatures into the low 30s, with the exception of yesterday's maximum temperature, which was at chivenor, in devon. we only got up to 26 degrees celsius. so for most of us, yes, there was much less humidity around. it did feel a good deal fresher than recent days. and it was a beautiful end to the day. this was the scene of the setting sun there in lincolnshire. now, looking at the weather picture for the early risers today, we do have a weather front across western scotland that will threaten to bring some rain into northern ireland as well. otherwise, it's a dry start to the day, and a fresher feel to the weather, as well. mind you, the rain will be welcome for gardeners but for most of us it is a dry start to the day and a fresh feel to the weather as well. although the rain intensifies for a time across

and then resting at home for another month with only water from the caves walls to drink the boys underweight and exhausted they're being kept in quarantine because there's still a danger of infection. the relief is overwhelming parents aren't yet allowed to hug their children but they're happy to see them alife. the tiny navy seals have published these astounding images of the rescue and explained in detail how difficult and dramatic this mission really was the boys were taken out of the cave just as the oxygen levels became dangerously low they were sedated in order to prevent them panicking in the narrow underwater passages doctors monitored their condition at regular intervals along the route the tiny navy seals would you bill and that they were able to achieve what many thought was mission impossible side by side with international full and his. i'm so many this unity is not only with chiang rai or thailand. it's a global unity. this incident was more than a life saving mission it's gone beyond that and it's the unity or nationalities. that. we were taught by. back home their friends eag

also, we tend to underweight the most dangerous sectors in credit, in particular high-yield in the u.s we think is very pricey. the fed continues to tighten. volatility is likely to increase. it is within that stage of the cycle when you have so much leverage, the high-yield sector, quite rich, is dangerous. this isthe risk -- really the problem we have each year -- despite the idiosyncratic risk we have had, and the trade war is the most important -- state assets have not done well, treasuries in particular. we are at a stage where inflation is rising, the fed is tightening, therefore you can expect much of a performance in fixed income. vonnie: it doesn't sound like emerging markets are a place you are looking to either in case central banks might destabilize emerging markets potentially? the thing with emerging, they are very exposed to the trade war. they have reacted already, there he strongly. if you look at performance -- very strongly. significantly,d currencies have suffered quite a bit in the rebirth of the u.s. dollar. much more has widened than u.s. high-yield. you have qui

indicates service that investors are underweight and emerging-market currencies.e some areas in european high-yield debts, and we like emerging markets high-yield markets. mark: what is behind that? is a partthink that of the curve that is fairly removed from the data that we are seeing in other risk assets and we are here to get the yield pickup that would allow investors to hold on. mark: back to the treasury markets, 3.5 is your call? diana: yes, it is. mark: your models are flashing 4%. is that right? on the 30 year -- 10 year, excuse me. the modelsissue is and they do not properly factor in the technical on the back end, and that is coming in from externals. theou look purely at what u.s. economy is doing, 4% is non-feasible. we have to factor in that have marginal bias coming in from europe, from asia who are %, they are.25 willing to hang on to the back end bonds. if there is a point where the u.s. curve should have been overshooting, that was it. but we see the foreign buyers coming in to buy duration. vonnie: you mentioned emerging markets, we you just bu

energy, overall we're underweight, we're unabl unfavoe on commodities.py at 75. as far as the housing market goes, you're younger than i am, but it makes me laugh when i hear a lot of people say gee, these rates, these 30 year mortgage rates have popped up. the first time i bought a house in 1986 i felt good about the 12 3/4, 30 year rate that i had. i think the housing market -- the labor market is good, people's incomes are rising slowly. i think we've seen a little bit of stumble here just recently in the housing market. i don't think it's going to fall apart by any means. we still just have an inventory problem out there. now these prices have run up and so it's a lack of inventory and a little bit higher prices, less affordability. but no way, shape or form do we think the housing market's going to fall apart here. dagen: somebody tweeted as president trump was talking about the federal reserve last week in an interview and he mentioned it on twitter as well, someone tweeted me and said why can't the fed just get out of the way and let the market ru

as opposed to eurozone equities which were underweight. market in of itself is slightly more decentered then the eurozone equity markets so we like it at this point in time. uncertainty, it's impossible for anyone to call. to createntinue turmoil in sterling. thank you both for joining us. is a professor at the london school of economics. we'llrd: will -- burkhard stay with us to talk tesla. that's next. this is bloomberg. ♪ francine: economics, finance, and politics. ombergs "blo surveillance." could tesla become a real car company? the carmaker hit its 5000 a week in goal for the model three. joining us now is a new guest. plus burkhard is still with us. at the model three, why is it important to tesla? huge number people have paid deposits on these cars already. don't get a big chunk of that cash until they deliver the ensure they do not need to raise more capital, they need to sustain this number. francine: is it a milestone and if it is, how does it change the dynamics of the company? alex: it is very important. we have been giving te

those are all minor variables as part of our thesis of having an underweight rating on the stock.he areas of concern the article highlighted but really just the nuts and bolts of manufacturing as the primary issue we have. this company was supposed to be a lights out fully automated company and they have not been able to hit those types of volumes using the robot. on the model three lines it has been robotic. but when the robots break down employees have to pick up the slack. currently tesla has 10,000 workers at fremont plant and gm and toyota have less than half that. is this sustainable? >> i think it is sustainable in the near term. in general there has been a lot of overpromising and under deliver net tesla sense of has become a public company. quite frankly for the other issues that have popped up they have tended to figure it out overtime. they bought a robotics company in germany. they certainly have the talent to get this done. i imagine all those engineers want to take a typical august holiday and are working very hard in july. i think the hardest part will be to transit

consumer discretionary stocks have done well the one thing i worry about there, we're actually underweightonsumer discretionary. the key friction there or the key negative there is starting to see margin compression from the mere fact that -- from a good fact which is that people are getting paid more money. so, it's kind of surprising, but we found that consumer discretionary companies like retailers, restaurants, hotels, they're very labor intensive so they actually tend to see a margin squeeze when the cost of wages go up. so that's one risk to the sector is that it's labor intensive and it could see a bigger pressure on margins from labor inflation than other sectors of the market that said, you know, you were talking about staples earlier. consumer staples look beaten down, and relatively inexpensive. there's a sector that might actually come back to life in the second half. healthcare, tech, financials >> that's a lot of likes i was saying thank you for waking up with "wex," then i realized you're in london. i have to rescind that >> i'm in london it was easy for me >> cool stuff the

. >> you told us that you've got underweight global equity. how would you add back to your portfolio. >> we're neutral in global equities in overweight that's the right question to ask. if we don't think the cycle is over we do need to be thinking what would we like to see to add risk back first, i think, is a continuation of strong estimates in terms of profit growth for corporations and some sign that this dispute is going to be resolved hopefully, between maybe the first step the u.s. and its e.u. partners and then some sign that things get better on the china side i'd also caution that many people think that the trump administration wants to wrap this all up before the midterm election i think that you have to question that that's the case. don't expect that all of this will be resolved very quickly. maybe the market needs to price that in a little bit a move in prices here to better valuations could be a reason that you want to start reinitiate on the equity side. >> sir, president trump also made waves over the last couple of days with h

that's an area we're underweight within our por foil owes general ri -- portfolios we have seen pocketsf turmoil in terms of turkey and argentina and brazil and the trend of a rising dollar is going to put more pressure there. so although we have been cutting back more generally we maintained a skew toward markets that we see as a relative safe harbor here. no one wins a trade war. it is a negative sum game that the u.s. loses. >> so just to wrap it up, are you not concerned about the flattening yield curve and what that may or may not indicate about a recession on the horizon? it's something that some folks seem to be more worried about than others an it's hard to determine where we should fall. >> it's lower on my list of concerns at this point it's not really a flattening or a flat yield curve that gives concern. if it does get to the point where it's inverted that's typically a signal that a recession is on the horizon. there's also a very long lead time between yield curve inversion and the ultimate recession. it's typically 12 months or more and you can get very strong equity mark

some of the main problems they're finding with the contract, the constant school is being too underweight so they actually have a pretty comprehensive policy to see these kids," emma. you really put weight on them. high calorie food, working out, they are coming home pretty healthy and pretty beefed up which is his own type of recruiting point . particularly in russian culture. they have to lower their standards in some regard in terms ofpsychological readiness . it's our attention here but they have had to lower that to maintain recruiting levels. >> i'm curious when you talk about their high capability for country and rapid reaction, some of the standards that nato has four members state's defensive capabilities. the city is under a, they have to have highways where large amounts of civilians and can wait while military forces going, infrastructure, things like that for liability. other similar things in russia set up to allow these cross-country abilities? >> yes, there's actually been an acceleration of the trend of the 13. so you see them doing traditional things like purchasing more

more miners, more defensive stocks in the uk also because the uk is cheap it's one of the most underweight markets on our fund manager's survey >> you know how brexiteers say no deal is a good deal how do you view it >> no deal is the worst deal for the uk economy that is the one where you have the most disruption, potentially big hit to the uk economy. could be anywhere, 3% to 5% of gdp over a periodof time but the market would basically have to say certainly they need to go significantly lower because the uk's access to the biggest market would be significantly impaired that probably requires sterling to be 5%, 10% lower than here to provide a cushion against that for us, no deal is the worst deal the question for the markets at the moment is are we heading towards no deal, which might happen if it all breaks down today, or are we heading towards something like the jersey option, that's our central scenario but theresa may has the real problem of trying to carry her cabinet there. then getting it through parliament and then getting the eu to agree to it. it's been very hard to work out e

when we look at the question of how do you implement that pro risk view, is it overweigies underweight? how do you implement it? right now we're expressing it as an overweight in equities. we're taking a bit more insurance out in the form of a neutral view on duration we think the holding treasuries, holding bonds is your insurance policy in those growth shocks you might expect in the later part of a sicycle. so, you know, i think you're holding equities but also holding more insurance against that view. >> you mentioned we fell into the late cycle almost unexpectedly unmarked towards the end of last year and six months ago all the conversations were about inflation. has that gone away as a fear >> i think the fear of inflation has always been overwrought. inflation itself is always a part of the economy. inflation outcomes tend to move slowly that's exactly what we're seeing so we're a little concerned in 2017 where you had downside surprises on inflation a lot of talk about deflation and markets reacted in a significant manner pricing that out. now we have swung to the opposite direc

it is underweight and suffering from skin issues.in lion in a neighborhood made some people nervous. >> they seem to be coming out of the hills and specially in the summertime i think it is because of the water i am not exactly sure. but, it is pretty low for them to come down. it is a little odd that the animal is down here during the day. at least for us. >> the animal is being taken to uc santa cruz to be examined as part of the puma project. experts will take blood and hair samples and put a tracking collar on it before releasing it into the wild. >> a mother and her seven pups, coyotes, have made their home at this house and sandra fell. a video from this backyard shows four of the coyote pups and the mom out there roughhousing and playing with golf balls on his backyard putting green. he tells us that the family of coyotes are frequent visitors. >> you from a distance. >> a restaurant known around the world catches fire. we will take a look at the damage this morning at a similar incidents that happened there just four years ag

of the russell 1,000 we are underweight a couple hundred basis points underweight if you look at tech oracle which are not high flierers qualcomm which have not formed performed well within our tech holding i think we shift a little bit more to some some value. some defense. >> are oracle and equal kochl recent additions they've been underperformers especially when you look at. >> qualcomm is a very recent addition and oracle relatively recent addition last six months. >> you are retoiting into. >> we've been rotating into little bit more value. >> another sector you mentioned energy an area you like. sh lumber. >> it's a well managed good quality company. oil as a commodity is up 15% appear shlumbevya there is potential appreciation there process. after several years of very little investment outside the u.s. now with higher oil prices we are seeding cap x improve they'red leverage to outside the u.s. increases in capital spending op exploration and production. >> the the trade war is taking up the lion share of headlines how does that influence where you want to put your money. >> i

jp morgan referring they're underweight, target is 180, more discussion of cancel agency rates whichs say are going to increase competition, lower credit revenue could you build a bookcase on it if you had to? >> i always believed, we talked about this in the past, the brand associated with tesla is really extraordinary, right? it's apple but more so you meet people that own a tesla or think about getting one, they feel about that product differently than people feel about other cars in my mind if what's going on now harms that in a material way, then this thing is over if the people who like the cars like the cars as much today as last week and like it as much next week, there's going to be recovery in the stock i suspect simply because the brand is a differentiated thing i think competing with them on brand is tricky if the brand is based on the car rather than elon if he is the brand, the brand will get hurt. >> roger, i worry sometimes we get too wrapped up in these personalities, big and bold and strong as they are in the news, but there's fundamental news issues underneath it y

very good story >> this is a market where you cannot -- >> you don't have tech as an underwater -- underweight >> absolutely not. and behind that financials the key to this whole thing, mike, has been, hey, look if you deliver, especially on the tech side of things if you deliver, stocks are going to react. amd is an example of that. best quarter in seven years for them microsoft, unbelievable quarter. where it is right now, trading 110. if you miss or if your guidance is not there, then, yes, the rug pulls out and that's where you're going to go >> that's the way it should be >> that's exactly right. >> my point is that if you have the stocks that have been most rewarded where all of this money has flowed, there's going to be such pain to feel if some of -- >> if they miss or the guidance is poor. >> -- if the primo once are the ones bleeding the most >> right >> like the netflix and today facebook and who knows with amazon >> these guys are poster child for what's going on like mike said with privacy concerns in europe the privacy concerns have been been as punitive to mike's point that's wh

. >> you're underweight international substantially then because of the market cap weight and msci index just as an kpafrm international stocks are, like, 48%. are you saying 15% of the equity, or you are saying 15 % of the total portfolio >> no, 15% of the total port photo yoel for example, if a portfolio is allocated a50-50 stock-bond, it's 15% of the total. >> so you close -- >> more aggressive position. for a more aggressive client it can be as high as 30% to 35% of the total portfolio. >> what makes you make that decision to go up or down from where you are today? >> or still later in the recovery certainly we know we're getting towards the end of the cycle we don't see a recession in the next six to 12 months, but we know that it's -- this isn't going to go on forever, so we want to be positioned to buy things cheaper elsewhere because opportunities are outside. >> i think he hinted at this a little bit where do you think the yield curve is going at this point because the banks are really stalled out here as we haven't seen the rise in interest rates that so many people had anticip

does that make you rethink -- if you you would have known that would have happened would you have underweight technology and that would have been the catalyst for your call >> i'm not throwing in the towel here because we have tactical levels that we have to get through that we haven't yet. let's be honest. what we're looking for is companies to beat numbers and then the stock to sell off to me, that's a worse sign and exhaustion signals to me, they'll come back to it and sell later and by the way, this is a tactical call. this is a tact call from the beginning of the year saying that we'll have a corrective action on multiples and we have that and that's the final piece and they root them out on valuation, i think we set up for a pretty good finish, quite frankly. >> to that point, we have the luxury of being able to change and be flexible on a daily basis and sometimes an hourly basis and see the market change. that is correct. when you look back in the beginning of the year you have this tactical call, and when you started to second guess yourself or sometimes when you second guess yoursel

. >> some see rio as underweight. are you looking at doing more exploration?sebastien: we are doing lots of exploration in copper. we would like to have more copper, it is a broader question. we believe in diversification. we are not going to diversify the portfolio just for the sake of it. we are highly exposed, but we have a strong work class which has been delivering. however, we would like to have more copper, more commodities. are other important metals due to do to this -- this trade war? jean-sebastien: there are two key drivers. gdp growth is strong. .nd the other is trade if i use the u.s. as a proxy, 90% goes from one country to another. times been to china a few , and to the u.s. as well. it is something we are watching carefully. i thought the last 30 to 50 years, a lot of wealth has been created on the back of trade. everybody acknowledges it. with the u.s.this and china, some feel trade is not inclusive, and everyone needs to sit down around the table and solve these issues. we want to create wealth for everybody. ceo,: that was the jean-sebastie

let's go to underweight on the small caps, that trade is overdone and overbought. >> well, liz, over of the s&p earnings come from overseas. so the small caps do have businesses overseas or they sell to people who sell overseas, so this does affect them. i think what morgan stanley might be looking at is the big bull run might be over, small caps do better when the market is going up, and some of that might be flattening out. and you want to be with companies with better cash positions that have a solid footing if something does happen. so i think that's what they're saying more than anything else. i still think if you're a stock picker, you can find values in small cams, but that's -- caps, but that's their opinion. liz: everybody who was worried last week, we have a gain of 339 points, folks, this is a market high. matt, alan, luke, glad you could be here on this monday, thank you so much. appreciate it. what's victoria's china secret? with the closing bell ringing in 47 minutes, up next angels strutting their stuff in china, but could the trump trade war take down the catwalk alon

it is underweight at the world cup.to the second half in moscow, it is goalless as it stands, england had the best of the early chances, harry came going closer, could not quite get that end, fingers crossed, columbia looking to have this man on the pitch. and then just before the break, nearly got it in. just could not keep this effort down. live on bbc five live and of course text updates on the bbc sport website. we will keep you updated if anything happens during this bulletin and england or columbia will face switzerland in the quarterfinals. because after missing a host of good chances, it was who finally found the net for the swedes. i help from deflection there. that is the world cup, but at wimbledon, both their safety into the second round after a straight set wins today. she reached the semifinals last year, while edmund reached the same stage at this years australian open and with all the news on the britons today, here's trey savage. against the world number 103. it was never easy, against the thalia, the c

potentially, is in tech i think it will be the biggest recovery when somebody is going and and taking it underweight, going neutral, they're saying i think the market is done >> kevin o'leary, where are you on technology? >> i have added to tech, and i'll tell you, i kind of agree with steve about, you know, managing risk that you may want to take some off the table because of the high multiples there, but here's another way to look at it a new narrative that's emerging regarding tech, let's take tariff wars. let's assume everything coming from china gets a tariff slaps on it, so all that stuff on the shelves of the dollar store and the target and walmart is now going to cost you 2% more, 3% more who is it that's going to fix the problem for the economy? it's going to be tech, going to be disruptive e-tailors that find another 2% or 3% efficiency in their distribution models to offset the cost, and money is going to flow to where productivity is created. that's in tech, that's in the cloud, that's in data mining there's absolutely no reason to reduce your exposure at this point on valuation, because

tariff a tit for tatt war is truly underweight now. >> doesn't it seem that way? you say this and now i will do that. complaint ating a the world trade organization against china, europe, turkey, and others, saying that the retaliatory tariffs are not right. we also heard from larry fink, the ceo of blackrock. he spoke to bloomberg television. he says that a $200 billion tariff war will cause u.s. gdp to slow down dramatically and it will also cost a big hit to the market. here is what he said. ,> if we have a true tariff war we will see the markets down. >> you wouldn't call this a tariff war? with will see what happens the next 200 billion dollar proposal that the u.s. government has done with china. kathleen: another view from wall street. this time from citigroup analysts who say the trump has been brutal on trade but are negotiations and they think trade deals will be done by the midterm elections. we will see. donald trump has been talking about unfair trade with china for three or four decades. i would also like to get us to tokyo. thank you for joining us.