when you look at 2017 we'll have similar numbers. so when -- what country in the world where they are fighting ten to 15 different fronts every night from fighting terrorists from over 20 countries. you have to look at all of those elements within that context that's how we look at it t. as far as the general population to serve better, absolutely our plans are government is working on to make lives better, absolutely. have we achieved the level efl successful we would like to, no. part of it has been the multitude of all of these different issues that has -- in the last is the nature of the government makes it that much more difficult in getting anything moving because it requires so much effort which is not really the case in a normal election process. so i think those are some of the things. by what we see the prospects to the future looks hopeful, not as fast as we would like but at least the gaze we are making is stainable than short term. >> thank you, very much. ladies and gentlemen, i'm going to open up for questions. we do ha

then you are looking at a potentially very significant down side. ong as that trade stays in play, you will see a time of record positioning that we have in the market right now. -- in the oil market right now. let's bring in our roundtable. >> joining us is the senior manager at aberdeen management. joining me is bob michael, let's kick it off with you. how dependent is this reflation trade on the administration's agenda and is it coming off the rails to some extent? >> i think it is important to the administration. they want more growth, they want higher paying jobs. i think the world has been reflecting by itself. here is what we have been looking at. we have been looking at develop market inflation, reflation is all about the creation of inflation expectations. if you look at the white line, you see that a blend of the u.s., europe, u.k. and japan has picked up nicely after the last couple of years. the yellow line is china. look at where that is, that is over 7% year-over-year pti. ppi. you tell me where the lack of reflation is in this chart. i

secondly, when you look at the pathology of these organizations, start from al-qaeda all the way to --, how the pathologist changed the look at groups whose only interest is destruction because only interest is denial of peoples rights, and if you look at around afghanistan, and afghanistan the government is fighting over 20 globals terrorist organizations. and people from russia to china to uzbekistan to turkestan and so many other middle eastern countries are fighting in afghanistan, people who have no fight in the case of the afghan people of the area, somehow they feel that they are part of this whole pathology of this death and destruction. and the final aspect of morphology, how these organizations are moving and becoming more lethal and far faster level. if you look at, for instance, al-qaeda, took them over a decade to develop the level of lethality that they got you, but by contrast when you look at daesh it took them a year or two. so when you look at all of these combinations today, the afghan soldiers are fighting that fight not only for their own country but also supporti

maybe this is short bets getting squeezed out of the market, but if you look at what happened to the eld curve, you can see down here was the all-time low. that was the lowest level since 2008 as far as the compressed five and 30 year yield curve. it blitzed up a bit but this is not the entire market considering we are going to see some kind of major growth. jonathan: what do you make of the message that comes out of the curve which has been flat over the last couple of months? mohamed: i do not make much of it. , and imake a lot of would be interested to see what lisa thinks, the spread of the bund. i and the bond -- think there is a phenomenon going on where central banks are becoming less dovish around the world. lisa: if you go into my terminal you can see the spread he is talking about. it is the two-year u.s. yield versus the german two-year yield , the highest level since the 1990's. this basically leads to a question of, will this be borne out in the currency markets or is this where you will see the dollar strengthened potentially if people come to the u.s. to catch those yie

look at walt disney company, you want to overpromise and under deliver, but if you look at the projections for gdp growth it is something in the , do you expecte something materially better than that? >> we are already in the middle of this year. in moving the 2.3-2.4 projection higher, it is going to be cuffed to move that higher. we will like to outperform the 2.3-2.4 projection for this year. as we grow over the next year or two, we will expand on that number as we get tax reform done in the second half of this year, as we continue to get the jobs created from the companies said that committed job growth in the future. we think growing the gdp ford is going to be relatively in line with our projections. our projections are co-opted like -- cautiously optimistic. this year is starting to be where we will outperform. nracey: that was gary coh talking about u.s. plans for economic growth. withwe will be sticking politics. there is lots to talk about. we will have alastair campbell, the downing street press secretary under tony blair. talking brexit, european populism a to the goings on in

you want to look at taxpayers dollars. you got to look at the cost of a fence. so billions of dollars were talking about. the other point about where to focus -- where to focus, if that immigration reform, john, then there's ways that we can have a guest worker plan that works where people can come in, do the jobs that americans don't want to do, then they can go backs of immigrant reform has to be part of this solution. >> host: staying on cost, a report in the "washington post," the covered administration is considered la's cutting funding to the coast guard and the transportation security administration to find money for the proposed border wall and of immigration enforcement initiatives. just numbers to go with that. $2.9 billion, going towards building the proposed water 1.9 billion going towards more immigration detention beds come in 285 million towards hiring a border patrol and i.c.e. agents. you are a member of the appropriations committee. do you think those cuts will find? >> guest: no. i summon homeland appropriation but we also coast guard also. it

if you look at -- the listing product has gotten a lot of and if you look at aw expensive it can be toublic company, that is in light right now. so we're looking to the house in congress to come up with smarter ways for companies that is not quite the burden it is today. cory: you guys have an interesting business on the private side, helping investors or employees of companies get out of the stock they are in. i wonder how that interacts with your business of getting companies out the door and listed on the exchange. nelson: i guess we are on both sides. we work directly with companies, so i would not say they're actually getting out of the stock, but they have the ability to get partial liquidity prior to the debut. private companies are staying private a lot longer, 10 to 12 years. 2016 was a big disconnect between buyer and seller in terms of valuations. it was much more tilted towards the buy side. in his first quarter, we have run some of our biggest programs ever. it has flipped. side is a lot less seelll demand. that tells us how the year might develop and the confidence compan

you can buy tbt. i think that's the way to look at it here. you know if the yields break below 230 than on the ten year. that's where you will stop out of that trade. >> i think the bigger question for seems to me do i stay long on my longs? i am heavily into this market. i am staying long. i do think it's not valuation. i think it's rotation. to richard's points, if yields are moving higher, you have to have that exodus out of bonds into equities. as i started the show, as i said yesterday, i'm missing something and there is still equity strength here. >> on a percentage basis, how much of staying long is based on hope? >> i'm not basing on hope right now. i based the rally off of trump probably 80, 90% on pro growth policies, but as i said, with no new regulations, that still makes a tail wind for corporations. >> coming umm, apple hit an all time high today, if you missed the move, dan niles, got two under the radar stocks, you can still buy but catch the rally. general motors is under pressure from david einhorn. he could be able to hit a m

thank you for coming in this afternoon. let's look key decisions are made by 11am. therefore, from a practical point of view, he could just about do both jobs. it isn't completely without iahs !t isn't rama!ete!l!all!itaeala-t a aa aa aa a aa for a politician to have precedent for a politician to have a second job, lawyers and so - an second job, lawyers and so on. an editor is a big deal, and this will bea editor is a big deal, and this will be a big test. i think it will be a challenge, frankly, but he can try. if he has the support of the owner and separately of his constituents, he might do it. it is notjust doing twojobs, it is he might do it. it is notjust doing two jobs, it is the nature of the jobs. he will be the editor of this paper, and it is a newspaper and he could be putting himself potentially in opposition to the government on whose he sits. that's difficult, potentially, isn't it? there whose he sits. that's difficult, potent difficulties, ' there whose he sits. that's difficult, potent difficulties, and are whose he

let's get you a little preview of what is to come. we will look-- the bitcoin story after the massive decline we have seen over the past four weeks. some of the key calls of the world as you get ready for the final trading weekend. this is bloomberg. ♪ >> you're watching bloomberg. i'm yousef gamal el-din in dubai. david: as we count down to markets opening in the emirates in just over an hour, yousef, what are we watching? yousef: plenty to get through here. focus.ill be in remember the declines we saw on the back of lower oil prices before the announcement of the saudi government through the finance ministry. they maintain the downgrade was anticipated. some analysts have described this as a surprise. the other thing i am watching is holdings. it is a company in turkey. they offer services. the question is what don't they do? they downgraded the recommendation on the country -- the company to sell from neutral. the target is 11% below the consensus. your to date, gains of over 40%. lastfinally waiting for a batch of earnings. egypt will be comin

if you look. certain industries, if you look at certain industries, if you look at certain industriesn on boards, i think the biggest and most critical issue is the pay gap, which i think we certainly cannot use the word seismic there. the pay gap is getting wider in some cases, getting worse. we have had studies in the uk which show that women who have children are actually in a much worse off position than they were not so long ago. 9 w: w : ~~ worse off position than they were not so long ago. i actually - worse off position than they were not so long ago. i actually saw . worse off position than they were not so long ago. i actually saw a | not so long (390- iadueflé at not so long ago- ladueflé at the last davos economic statistic at the last davos economic forum that said that at the current of change, in iezc of 3 of change, in iezc of gender 3 pace of change, in terms of gender equity and business politics, it would take up until 2059 four that gap to be narrowed. the pay gap? yes. so i think we still have a long way to go. i must admit, i am not as optimistic as he is, dare i s

lisa: yes, there is some cautiousness when you look at yields, but there is not cautiousness when youat debt issuance. we talked about his earlier, mohammed was talking about the leveraging of these companies, i will go into my terminal and look at league go. this is the total amount of high-yield bond issuance in the u.s. in march. the first line is so far this march, and then going back to previous years. previous years.for a record we are on pace for a record march issuance of high-yield bonds even as we see more than $4 billion withdrawn over the past week. you have to wonder, are investors not taking into consideration these risks? jonathan: mohammed why aren't , they? you said it was rational from the investor side, but why aren't investors lapping it up so much? mohamed: because goldilocks dominates mindsets. people think we will sustain a low volatility environment that they can capture low yields. i would also point to something else. those who have lived in the high-yield and emerging-market world have seen it over and over again. we get populated by crossover investors. the

we showed you the widening gap between topics. this is one way of looking at it. elation was not as high as it was before but it depends on your settings. side-by-side, hopefully that breaks down if you are an equity investor. the yen is controlled by other things. to pin yourard hopes on something you cannot control. especially when it comes to your money. will davis, thank you. we have a breakdown of correlation in the equity space. one feature on the bloomberg we would like to bring to your attention is our interactive tv function. our version of smart tv. you cannot only watch us live but see previous interviews, dive into securities and anything we pull up on the show, the functions we talk about. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . we will speak with michael spence about the challenges facing the chinese economy. deceleration bumpy and not a meltdown. ♪ >> trump's policies on infrastructure will have impact but not to the same extent as china

you are stuck looking at equities. seems to be a more important force in terms of short-term market tactical calls. at the moment, momentum is positive and cyclical momentum says you should be stocks over bonds. we are not concerned necessarily about that and would not see violations as a definitive factor to think about at the moment. guy: interesting considered how fixed income may be talked about in europe. the european union is said to be considering formal negotiations to begin the terms of brexit. according to officials, the 27 members of the block have pinpointed a meeting of government ministers in london. that take place -- that takes place on june 20. that would start the two years that the british prime minister has to strike a deal. there are many other things they will talk about as well. let's focus on what is happening with the u.k. right now. how investable is the question, is the u.k. right now? the pound is popping around all over the place. we still don't have any visibility about what the other side

small-cap and mid-cap strategies, what are you looking for? g at infrastructure spending, the other plans that the government has at least talked about we will see in terms of lower corporate taxes, lower regulation. those will certainly be beneficial. they are more domestically focused. a lot of it has been priced into this market. we are very cautious in terms of the valuation levels and the fact that the market is depending almost entirely on washington, d.c. to come through with not just the actual details, but the timing of implementation. struck immediately after the election how much enthusiasm there was. i know how glacially things can move there. did investors begin to reevaluate when they got a sense of realism? >> it is our sense that they did not yet. if you look at valuations of 2017, the market has ignored any signs of bad news whether it is delays, if none of this gets implemented. we think -- evaluations are not cheap. and warrants a defensively oriented portfolio. .hile everything goes right david: let's gauge your optimism. wh

if you look at my bloomberg, you office, since abe took we have seen this steady increase or rise in ing figures. take a look at that. even when we are seeing this compressed lending margins across financial institutions, does this give you some cause to look at the -- pause to look at the financial opportunity? >> i think japan going forward is seeing fewer headwinds. all of the data you are pointing to really resonates with that thesis. theink as we move toward second half of this year, we could see maybe some light at the end of the tamil -- the tunnel in terms of where the economy is going. a lot of the bottom of research has shown that we can see a lot of positive things bubbling up. your example of take lending is certainly one data point for us to focus on. shery: what does it tell you about abenomics when you see bank lending increasing since abe took power? is a positive? melissa: it could be. it could mean a lot of things. it is hard to take one data point and make far-reaching assumptions. it is put in context and really looked at in terms of valuation and how when you thin

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of what they're doing, whether you are looking at amazon or netflix. don't seem like tech per se. tech is what is really propelling the story. you can drive people around with technology. can you take over retail, take over the entertainment business with technology. that's what all of these companies are doing. all of them are trying to do the land grab. jeff bezos admittedly successful. >> one of our biggest clients, carter, i own a big defense contract. what do you think that is? they're the biggest tech guys of all. there are many ways to get tech. facebook isn't tech and so forth. >> the trump master says it is time to lit the unfriend button on one popular tech. carter. what are you looking for? >> it's facebook, is it tech? a popular stock? a super cap name. and it's come a long way. let's just start with a few things. so, just to put nit perspective, i thought i'd put it in the top three waitings by sector in the s&p. we know this is a gargantuan, microsoft and google and so forth. so, one, it's reapinching, much more segment. keep that in mind

you know looks really cool with shaved head. like charlize theron. >> i'm proud of her for honoring her grandmother in a beautiful way. etes you have to marvel at the creativity of people out there. laura kemp is a very handy individual and took an old bmx bike and bought herself crummy old hand truck. she's going to start frankensteining the two together. take the wheel off the hand truck, create the axle, saw the fork saw off and extend the forks. she's handy with the welder as well. then she cuts a hole out and begins to mount things together, welding it all together. okay. she's got a bicycle with a very tiny wheel and a little skid on the front. >> from what? >> moving heavy things around. >> is she going grocery shopping? >> she's running down to the local beer distributor to pick up a case of beer. which, oh, look, it fits perfectly. this thing works so much better than she anticipated. this is a great idea. she is going to use this to take packages to the post office. there's all kinds of other things i could use. >> all

you have to look at noimd notice. now. you say, look how smart it was. russia, it pushly went there, it doesn't count because there wasn't a region? >> i just can't throw darts and say, hey, this han been. you had to hill a bull kwlees i. you recognize it's part of the global opportunity set. >> what day is this. >> you'll be adding to it. >> what basis? >> on the basis of -- >> what was your fundamental race? >> i don't have a fundamental case. >> how do you overweight rush. >> he just said overweight russia. >> here's what we're going to do. we're going to end thap name. he's going discuss the fed, global markets, met many. mane. i don't rehn ya. . you probably know be now. i told yui were done. schools in new york are already closed. if we have to resort cutting your mikes, we will. that's how we work around here, okay? jacqui jeras joins us now with what to expect. hay, jacqui. >> this is goefts to be a phone afterfrl. we authentic than's going to be the betts el seventy. that system is going to all to the east and blend in wt another low which bhasen

that is versus when you look at the u.s.r canada, the support for akp as at 14% because there -- there immigrant population is high educated. that explains a lot. having said that, there's also refugee communities here. ther the coup d'etat in 90's, there are kurds. when you look at akp support in germany and also in a few other countries, also much higher than in turkey. the votes here are cross pollinated, and the participation rate last time was 36%. a lot will depend on the mobilization of the vote here. thatsonally am just hoping more people will be mobilized, and more people will be mobilized to say no. melinda: for all the reasons you just outlined, the campaign on this referendum is in fact being waged also right here in just heard,reas we there is a very large turkish population that is entitled to vote. let us take a look at what that campaign entails. announcer: turkish prime minister was in germany last month to try to convince turkish overseas voters to support -- rendum on some referendum on expanding the power

no matter what part of the market you look at. at is important for portfolios and investors is how much incremental compensation are you getting for the incremental risk you are taking on. when you look at the market through that prism, it becomes clear that you are not getting enough compensation in anything bb and above. all of that is moving purely off of interest rate risks. which is a huge wildcard, to say the least. bb's are trading at high 200 spreads now, which is roughly 30 basis points off their all-time low. triple c's are trading at 279 basis points roughly, which is roughly 200 to 250 basis points off they are low. even if you see egregious losses, you're compensated to take the risk. but that is not necessarily how investors define safety. jonathan: at this point, we talked about if we are in a bubble, talked about credit, let's talk about treasuries. oksana said we have been dead wrong on rates time and time and agai again. we come into a new year again where the market is dead wrong on fixed income and again, we are

a misconception when you look at global equities and the reflation trade that it into fits all. this is a chart i made up for you guys. the correlation between the u.s. 10 year yield, one of the best indicators of the reflation trade, 2.61%, between that and the s&p 500, rest ofx index, and the asia. when you get yields up in the u.s., money coming out of the bond markets -- that is still relatively positive for u.s. stocks. look at go to japan to this reflation trade, you have a weaker yen that might benefit equities. a positive correlation there as well. when you take japan out of the equation in asia, this positive correlation disappears a must completely. a misconception that when you have people coming in and trading, inflation coming to the system, that does not benefit asian equities. the other thing i want to point out on this chart is that the correlation of the last two weeks has started to come down on the s&p and topix index. there is money coming back into emerging asia and about to turn positive, so has the tide turned? there is your chart there. #6753 on your bloom

not your all-time number one but one you look to -- you like to look up. an underrated data. >> i would have to say something like the weight of gdp. that would not be my favorite. >> i would say the employment report. that's measured -- measured well compared to other things namely independence and accounts. the unemployment report tells you about wages and how many people got a job and what the unemployment raise and we can agree or disagree use to use three or six for the definitions but has a wealth of information what is the state of the business civil and insight -- cycle and insightful and do we have full employment? the timed for the federal raising rates? slowing down in number of hours worked? you can get so many answers to so many questions. an advertising pitch for looking the employment report. it's outstanding. >> first friday of every month with the exception -- >> decide s on we the 12th of the month is -- in this month it's the next week rather than on this coming friday. >> so there's no question that my faith rid re -- favorite reef lice

you look like you are prioritizing the cash talents, the bond market, curtailing dividends.man is it to get investment grade? , it is important. we like to make sure we have the rating and a strong balance sheet. we are doing really long-term investments and long-term bets. that can only be done if you have financial stability. >> i'm going to dig and more to the potential partnership, because looking at some of your lower margin areas of the business, is this the time you could be working with other companies rather than a standalone basis? we will always work in partnership with companies. we have a partnership with cisco, for example. we have partnerships and new areas. so we would see in the future that it will be much more about ecosystem, partnerships, and collaborations. caroline: still ahead, we get back to our main story of the week, snaps first day of trading. just how big of a paycheck of the cofounders bringing home? we will hear from the bloomberg billionaires team next. this is bloomberg. ♪ caroline: its stock we are watching, apple hit an all-time high after r

and if you look at it now, they are 30 percent higher. so if you like to write mortality, with which groups in society are doing worse, additionally it's always been african-americans, is no longer. it's white with only less. these are not high school, the high school dropout rate is bad things happen but it's a group that's getting smaller and smaller. >> this is a more or less stable group. each group so this is really happening to them. people are changing. if you compare black non-hispanics with out, sorry. if you compare the education of people which is you take white non-hispanics at the high school or less, black eye school or less, and mortality rates are now. here's a map which shows you what is happening from 2000, these are what we call the death and despair and this is alcohol and suicide mortality for white non-hispanics . and you can see these are actually aggregates but think of them as economies, you move along the top row and it's getting darker, that's darker still and now you can see them all over the country . you have

looking at, around 2200. basically in the s&p. how much work do youd look at rate, not rates, but the ten-year and when you look over the rotation, where we've had on and off again, the correlation between money comeing out of bounds going into equities, how much attention do you put or lean on when you look at the rotation trade? because it's obviously not about valuation and it's not about, not totally about politics to your point. >> you make a great point, but i don't think you need this great rotation for stocks to continue to move higher. they've done just fine. we've seen inin flows into both stocks and bonds, so there's room for them, too, to work in harmony. that's not the call. i think interest rates move higher. i think we get through the bill 260 resistance. i think we get through there, that will give rise to the financials. >> rich, thank you. good to see you. pete? >> today, i was fairly quiet, but did grab some calls in there. there was a lot of activity out there. there was activity across the board. the one thing i could say to you i

if you look at the msci asia-pacific index excluding japan, 13.6%, a clear laggard. why? look at fund flows and asset allocations, there is a big weighting of money in developed markets, even though we saw that slight rotation into emerging markets. people are still hesitant about china. year, we could see renewed enthusiasm in china. regarding hong kong, you are seeing fund flows from southbound trade supporting the market. controls have been a big issue here, and something the chinese government has been clamping down on to we have a chart showing that. how big a problem has this been for chinese investors trying to get their money out? investingbeen elsewhere, but within their own economy. wante chinese government to change or alter the household asset allocation and shifted from so overweight property h-shares, a-shares, so investors in mainland china look at equities as a long-term asset allocation. rishaad: it is a casino. >> at the moment. it is an emerging market, so there is the evolution of the market. >> we see that with h-shares, and considerable flows, almost

if you look at the -- after the rally in 2016, you're looking at policies increasing supply. mean more --bined lower prices. joe: are you suggesting that the fed is making another mistake here hiking at a time when the market does not see the inflation that the central bankers do? >> i think the fed is in a super deep technical problem, it is called a pickle. the economy is not picking up but they were behind the curve, the should have started raising as we said repeatedly around the tapered tantrum and 11. they are almost irrelevant. they cannot tighten and they cannot really ease. the problem comes back to congress and washington. they're not doing anything. scarlet: you told us to keep an eye on wti. it would be a clear indication of what could come. and ita technical chart is flirting with the 100 day moving average which is the yellow line there. it is below the 200 day moving average. >> could matters because it is the most broad indication of aggregate demand and inflation expectations. we saw a breakdown and you come back to the moving averages, they are heading down.

to expand yourg assets from beyond the city, more than you have already? history, lookwe have been predominantly do you buy-focus, 90% of our overeries came from dubai the last 10 years since we started delivering in 2006. dubai will continue to be a core market. our land bank and assets and operating profits will continue to come from dubai. i get asked about diversification all the time, but it is difficult to find a market as attractive and rewarding as dubai on a risk-adjusted basis. some analysts have downgraded your stock on concerns that rising costs will eventually impact your profit margins. with this be a problem? margins, thist industry in its very nature, the development business, is cyclical. what you can not is wish cyclicality away. i think you can actually acquire assets at interesting prices when markets are down, and deliver and position your products in a way that would allow you to achieve financial results. themselves, they will come under pressure in a down cycle, but it is also about how you have positioned your land and develop your land. the way

if you actually look at chinese economic data you don't see much evidence of that at all. in fact there's no shift that is politically visible towards chinese loud households -- the reason is because whatever xi jinping says, the economic policymaking process and the chinese commune nist party is dominated by interest groups which have a great interest in keeping investment levels high. there are concerns chinese enterprises are leaping towards huge wastes of money as investment is increasing rather than decreasing and so there is some concern that although on paper chinese leaders -- have immense power in rate xi jinping is very powerful in comparison in the citizen in the party elite he is trying to wrangle he has fail to do that and actually leading china a more sustainable economic path. so there some real lessons that china ought to learn from the 1980s, and not lessons but authoritarianism but lessons before making sure you have the right interests in your party to make sure you have checks on the power interest group inside your political structure. >> great. thank

so if you can look at this thing, you say anything in the direction of that arrow is good, that means more riches, more material well-being and also more health, living for longer. and that arrow summarizes what's happened over the last 50 years, which is countries have moved from the bottom left to the top right, they've moved along the curve but even better the curve has moved upwards. so even countries that didn't get any income growth have actually seen quite a lot of health growth, which is a pretty amazing thing. you know, there are countries in africa that show very little growth over that 50-year period but but they're living longer and their babies are dying less than used to be the case. one of my favorite statistics is that in 2010 there is no country in the world where infant mortality is higher than it was in 1960. not even north korea. not even the really bad places everywhere, there's been improvement in children's life chances. here is global poverty. these are the world bank official figures on the number of people living on less than $1.90 a day. and you can see that

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those are the opportunities you want to look at. u want to see who gets squeezed out at these high levels. >> one comment i would like to make is the market is composed of many different elements. if you think about the year so far, we've had a rally mostly in the biggest names. the top 100 s&p and nasdaq have had the biggest move. small cap, mid cap names have not moved. anything close to the market. so there is still room there. and we see opportunities for them to catch up to the rest of the market. which is trading at 18 times, 17 times next year. but you can find places where you're in the 16 range. and i think that's reasonable. >> so richard fisher, if you are sitting on the board and you have a vote, how many times -- and investors need to consider this question. how many hikes are we going to get this year. did janet yellen open the door to maybe more than people are expecting? how are investors supposed to think about what's coming forward now? >> i think she kept a pretty steady hand. they called for a couple more this yea

few specificave a companies you are looking at. want to take on the large cap versus small cap that you have right now. i'll large cap pic is enterprise products. we have been consistent with that. epd is the most dominant franchise in the midstream space, a 6% dividend yield. when you look at how they cover that distribution, it is an 8% to 9% free cash flow yield and they will grow that at 5%. everything goes into and gets consumed there or exported, so we like that when it on the small cap side. we like dcp midstream. this is a gatherer and processor in the basin and colorado, and then a strong position down in texas, so this will benefit from increased volumes, but higher ethane prices. you go from ethane rejection to ethane recovery, it is a big swing in the amount of volumes. scarlet: what about the canadian names? oliver: keystone too. >> the canadian names are a contrarian area we like to look at. people think they are dirty and high margin, which they are also zero decline rates, which is very important when you're looking

[laughter] you raise russia and russia is looking at washington with a lot of interest. f scholars at the woodrow wilson center, what are you saying and what are they telling you about where russia is now with respect to the united states and europe because of the election of donald trump? jane: we don't know if this movie ends, and there are investigations into what ties there were between anyone who worked in a trump campaign and russia, but are scholars say that it is a complicated relationship. we have to work with russia, we should be talking to putin, but russian aggression and europe should not stand. arebalkans -- baltics enormously worried and countries of europe had kept sanctions in place. if the eu falls apart, that could be a harbinger of a resurgent russia in race that will not be helpful to the united states. david: many thanks to jane and ceo ofsident woodrow wilson center. coming up, president trump and chancellor merkel are meeting today. we will have special coverage as deniers conference starts at 1:20 pm eastern time today. this is bloomberg. ♪ emma:

caroline: when you look at the analysis, you are looking at the market capitalization in terms of thef the users that they have. they say the market cap value is significantly less than facebook or twitter was. jitendra: yes. that is one way of looking at it, but actually if you look at , the big picture and compared to all the key ipo's that happened over the last decade, snapchat is coming up at the top of most of them. and with those outsized valuations come outsized expectations. growth should not be a worry they justst because started monetizing it, but user growth if they show any weakness ,, especially given instagram's run, that would be bad news for the company. is interesting. we just had sarah frier on saying it is a bit like when apple went into music streaming. spot a fine -- spotify's business model was vindicated. do you think that facebook is doing everything they can to copy snap because they could not buy it? does that was vindicated to advertisers that this is where you want to be? jitendra: yeah, see that is why , it is a wait-and-see story. initially you have the

you again. alix: we spoke to a congressman last week of the freedom caucus. and he said lookat is your francais. jon: people they don't need worry about getting reelected. here is how the scene is set at the moment. equities opening flat in new york city. from new york you're watching bloomberg. in newt is 10:00 a.m. york, 3:00 p.m. in london, and 10:00 p.m. in hong kong. i am vonnie quinn. never: i am nejra cehic. welcome to bloomberg markets. vonnie: we are going to take you from new york to london, and dublin to doha. here are the stories around the world. bouncing around. european shares mixed, with equities hovering near records. is there value to be had? we speak with an investor who focuses on value stocks. after in europe, a day the triggering of article 50, companies are gearing up for partial moves out of the uk's we will tell you why j.p. morgan is targeting dublin, and why lloyd's of london likes brussels. in u.s. politics, president trump meets with secretary steve mnuchin as the push for tax reform heats up. where do they stand on getting a deal? vonnie:

you have depends on what numbers. i'm looking at forward. the point of it -- >> 35, 40. >> margin expansion here. they've invested heavily, but still able to grow their margins, so you get operating l leverage and the ad dollars are going to two places. facebook b and google and that's not change iing soon. if snap thinks they can get that, i think it's going to be a tough one for them to achieve. >> i think there's another thing, we know and we're not mentioning here, there's a ton of cash this this space ch it's one thing to have the cash an another thing to put it to use and you're starting to see the activity pick up. you've seen mxpi picked up. both by the way foreign company, so it gets around the repatriation of cash issue. not even going to take the -- >> like the cherry on top. >> you don't need the cherry, youf got to sundae, these companies are willing to go to work. cisco keeps picking off these acquisitions that's building up in security and internet of things business and that's percolatinging through the sector. i think seeing

faison, as you look to what is you look at the local story here in kuwait. the kuwaiti stock exchange. best-performing index in the middle east and north africa. you are up over 20% this year. a lot of investors look at the valuations and are not really sure what it is like either. is this something happening with the fundamentals of the kuwaiti economy? guest: the indices are somewhat deceptive. to 8%,ket is up closer 8.5%. it is onebeing said, of the best-performing markets worldwide. .his is back several years what happened last year was a lot of factors. .here was some big trade that created a lot of liquidity. the liquid market has taken a hit. that also creates less channels for people to put that liquidity in. there were some good results from big companies such as the banks. all of these factors came together and drove volumes and drove positive sentiments, especially on the back of saudi bond issuance. yousef: a lot of the gains we are not capital flow driven from outside the gcc. a story ofeen investors from this part of the world, are we going to s