tv Bloomberg Markets Bloomberg February 26, 2016 3:00pm-4:01pm EST
scarlet: from bloomberg world headquarters in new york, good afternoon. i am scarlet fu. here is what we are watching. 28 between gains and losses on the final trading day of the week. oil heading to its highest level on the month. economic numbers paint a brighter number on the u.s. economy. gdp for the fourth quarter coming in ahead of estimates. hisen buffett will release annual letter tomorrow morning. what will warren buffett say about investing, what will you address and how will he address the slump in berkshire shares? first, we are about an hour away from the close of trading for the day in the week. stocks are mixed right now with the dow lower by 72 points. the s&p 500 down by a quarter of
1%. the nasdaq is gaining, up by two points. let's check in with julie hyman to give us the scene. as we a very tight rein bounced around between gains and losses. that was true of a couple of other days during the week before the latest session breakout. that is not happening today, at least not yet. the s&p and the dow more deeply in the red as we head into the afternoon. we have the economic data that came in largely better than estimates, it shows signs of inflation in the fourth quarter in the month in january credit that has brought forward expectations for a potential rate increase, which has had a mixed effect on stuff. speaking of a mixed effect malaise look at the sectors on the move here. we have materials that are trading higher, energy shares trading higher, and financials are trading higher. then we have utilities, consumer staples, technology shares counterbalancing the gains that we are seeing. i should also mention, and scarlet as i have been talking about this recently, all you
remains below the 20 day moving average. here you have a sector by sector. we seey two groups are above volume is utilities and energy. all of the other groups are staying declined. scarlet: thank you for the setup. we will turn to the bond market a little bit later on to give you more context. in the meantime we want to get a check of the headlines on bloomberg first were news is afternoon. mark crumpton has that from our news desk. mark: thank you. new jersey governor chris christie is endorsing donald trump for president. governor christie says that donald trump is the only man in the race qualified to be president. the two are campaigning in texas today. that stakeholders primary on tuesday. trump also shared his views on rival marco rubio. >> if it did not work out for me, chris would understand this. i would go back into what i do. by doing this because we're going to make america great again demand politicians are not going to do that.
these politicians, they are not going to do it. in a lightweight. he does not have the talent he does not have the temperament, he can never make us great. governor christie ended his bid for the president after a poor showing earlier this month. and it appears marco rubio ted cruz are trailing donald trump. seven southern states up for grabs show that trump is by 37% of likely voters. senator marco rubio and senator ted cruz are tied at 20%. the gut infections in nine pregnant women in the united states, they all got the mosquito-borne virus overseas. the cdc says it is investigating 10 more reports of pregnant travelers with the cap. president obama is in jacksonville, florida where he talked about the benefits of the massive spending bill he signed shortly after taking office seven years ago. 700 $60 billion was
added into a slumping national economy. the president hollande a factory a the president visited factory that makes high-tech batteries. governor rick snyder is authorizing spending a four the water bills of flint, michigan. the plan will pay for 65% of the portion of the bills. that is for one that was used intermune, cooking, and bathing. the residents will still have to foot the sunni portion of their bills. global news 24 hours a day, powered by our 2400 journalists and more than more 100 and news bureaus around the world. i am mark crumpton. scarlet: thank you. we turn our focus to the phone market. treasuries heading lower. yields are higher at her date on economic growth and inflation exceeded wall street estimates. now with more is the head of fixed-income at raymond james, and our debt columnist from the gadfly.
let me set the scene. if you come into my bloomberg spread, whathe 210 you would see is we continued to find the gap is now 96 basis points. it has been a steady move. kevin, what does this tell you? it used to be a recession indicator. if that still want this is still -- is this still? at some point the market and the fed have had a disconnect, and a lot of that has to do with the drop in oil prices. as inflation falls and looking at global rate, investors flocked into the long end of the curve. the fed has remained flat, but right now we're understand dell. scarlet: that is connected something you have written about, lisa. worn traders that they have underestimated the fed. of fed is saying that markets are not always right.
>> people have been looking at the bond market, saying that they are incredibly pessimistic. look at long-term treasuries right now. it has been the best rally to start a year for 15 plus years. since 1986. is overly pessimistic, is the market wrong? me to take theor versus the economist market, or even the fed versus the market. the market will dictate the supply demand and react to it. what we are reacting to on a 35 isis point drop in yield that we do not believe there is anything more than moderate growth. we think of inflation right around the corner, all the some numbers may argue that today. there is no better place to put your money as we ride this out.
the fact that money is flowing out there on those premises, they're just not buying the music that they are singing. become on the fact that they do not want to put their money anywhere else. is $9 trillion of corporate debt coming due through 2020, including $2.3 trillion in speculative grade -- coming due in those years. you thatrned are because investors do not want to invest in these companies anymore, this can be a much more parallels -- wall?us >> there are better conditions for roads. they are a little bit wider and high-yield, and they make it even wider. that may make it more attractive for investors. certainly start to find yields in the marketplace, which was they cannot do is rush to it and give a credit quality in the process.
if youn be a problem jump out into high-yield at the end of the cycle. scarlet: there are signs that there are cracks in the corporate debt market. $3.8 billion market cap, but it had trouble generating interest for a takeover, and cannot do very well in terms of borrowing. it is now harder for these leveraged companies to borrow. ? back at most of the high-yield corporate debt, it is all energy-related it is hard to find investors when you are taking $20 or $30 a barrel off of oil, and you're not sure where the bottom is or if it will go back out. they are tentatively looking at deals, but not at these spreads. oill we get utilization in and we do why did out another hundred basis points, it will be a little bit of here and maybe i will not. >> how much are we seeing in the , due toe that markets
the difficulties of people have trading right now. scarlet: liquidity concerns. >> liquidity concerns, exactly. the people i talked to said it is incredibly difficult to get anything done. has that been your experience? >> it absolutely has. we have not participated in a regulatory market like we have right now in a fixed income space. this happened many years ago. you don't put up a lot more n you used to. provide liquidity, balance sheets have to be segregated. the margins have shrunk due to transparency. if you have to make liquidity every day, they are getting higher among them fewer players are going to remain. scarlet: on the whole, what are your clients starting to do?
appetiteave more risk after this week tomorrow they on the defensive side? >> in the institutional space in particular, they have been putting more money to work as they struggle to find better quality loans. they are getting more comfortable that they are not going to get priced out from inflation. for usst five months have been a very productive five month, trying to work with balance sheets. individuals are still talking shots at high-quality corporate. mostly, stay intermediate, stay and wait for the next move, because we have done this for eight years. scarlet: thank you so much. you can find this on the bloomberg terminal. coming up in the next 20 minutes on bloomberg markets, warren
buffett releases his annual letter to shareholders. tidbits,is investing will warren buffett say anything about their lacking performance? at the bottom of the hour, monetary policies will affected. what central bank across the globe should and should not do. break,ead to the walmart, coca-cola, and microsoft. two of the biggest holdings for mr. buffett. ♪
markets. let's check on where the markets are right now with about 45 minutes to go in the trading day. first a look at the s&p 500. little changed right now. the heaters include all the cyclical materials, financial, , you can seenergy how the investors are playing this report. as for the dow industrials it is down about a quarter of 1%, off by 46 points. has been a pretty steady recovery since that february 11 low. the nasdaq is the only index for far in the red -- so far in the red for the week. on the day it is the performer, gaining 12 points. time for the bloomberg business flash for some of the biggest business stories in the news right now. next weekend be he will replace advertising on some of its programs with content. for by american express.
on shows have spots like the voice, blends both, and late night with some buyers -- with seth meyers. more difficult quarters ahead. the auctioneer today reported a fourth-quarter loss of lauren and $11 million -- more than $11 million. y are undergoing a management shakeup. and a credit suisse, the bank has begun to sell distressed debt holdings that triggered losses last year. this is part of the overhaul by the new ceo. that is according to people with knowledge of the matter. the bank has been marketing small wha blocks. that is your business flash update. it is a must read for your weekend.
warren buffett will be releasing his annual letter to berkshire hathaway shareholders, it is not likely to bring much cheer. berkshire hathaway has lagged behind the market by the most since 2009. they have like behind the s&p 500 and the last several years. there to talk about how he will ouress this weakness is senior analyst. hearingll interested in what he has to say about his own plans are the coming year, including the prospect of m&a. but first let's get what you think he will say about the national environment. in terms of the poor environments i think warren buffett is typically upbeat on the long-term prospects of the u.s. economy. a fact that to be no different in this letter. we are interested to see if warren buffett thanks -- thinks an eventual pick up an economic activity -- how quickly that
will come, and let the benefits will be to berkshire hathaway 's operation. he is the ultimate value investor. he has a much different time horizon than most people in the market. i was thinking five years, 10 years, 20 years? to say.is fair warren buffett tends to look into generational opportunities within the u.s. economy. that is why he owns major operations like burlington, northern rail, as well as significant volatility utilities -- regulated utilities. scarlet: let's start about what the plunge in oil prices that we've seen so far this year, what that will mean for his specific businesses. shown rail operations had slower topline growth and slower earnings growth as a result of a industry, wehe
should see these in earnings in the next few years. decades, muchg more traffic will be on rails, and that is ultimately going to benefit berkshire hathaway. scarlet: we talked about how shares have lagged behind the broader market, there is a sense that berkshire shares are undervalued, a level of 1.2 times book value. what does that mean for the companies plan to buy back shares? >> warren buffett has said that berkshire will only repurchase stock if the valuation of berkshire is at or below 1.2 times. currently the stock is run three times four, which makes me think there is not a lot of downtime in the shares. we think that they could buy back billions of dollars of stock, but we're not sure it will. at the same time, berkshire is going to benefit from big,
creative acquisitions. our sense is that they are still on the hunt for other large deals. of course, you have the ongoing of major acquisitions which was justz, enclosed within the past year. scarlet: what do you think he would say about an underperformer like american express? >> stockholding, major stock holdings and american express have knowledge of dollars of gains from berkshire. warren buffett still has a positive, long-term outlook on the company. then of course, you have ibm be a laggard since it was acquired in the portfolio. the same time, the company is raising dividends. that increases the value as well. over the long term, we think american express, the other major holdings like coca-cola and wells fargo, this will be long-term holdings for berkshire hathaway. scarlet: i have to ask the
inevitable question, what will we learn about succession plans for mr. warren buffett? it is paramount, given his age. the succession planning initiative i do not excite to hear anything new in the annual letter. there was coverage to some extent in the 50th anniversary shareholder letter that came out last year. i do not ask for you to hear anything new. wasen buffett has said he to run berkshire hathaway for the next decade, and we hope that is the case. scarlet: thank you. still ahead, insight on today's options activity. a quick check on how the various sectors have performed this week. materials, consumer discretionary, industrials, and health care are the top performers. ♪
julie: you are watching bloomberg markets. let's get to today's options inside. capital is and recon joining me now. he can do some of the talking as well. we are looking at the markets where the fix has come in substantially. some strategists are looking at the volatility and saying things are: down, and maybe they will stay home for a little bit. never -- the vix has never closed below 19. it is significant higher from last year but still on the lows for this year. what is nice to know is that it never closed above 30. it never breached the 30 level. when you get there it is showing indications of the global economy. that people are very nervous.
the options market was not indicating that at all. a lot of credit people go into the vix as well as the options market to put on hedges for themselves as well. it is indicative of what credit and equities are thinking. we've seen on both the up and the downside, the leadership frequently has been andarge cap technology, large-cap banks. we are looking at large cap tech in the google or apple that to be success of -- all of it to be specific. i got even more bullish this week. one of the reasons why is we landed a big contract with spotify, the music streaming service. they took that contract away from amazon and the clouds. what is nice to know about google is they are drawn the meeting in mobile with android. they're doing well with streaming and youtube, now they're getting more aggressive in the cloud space.
operators are getting higher multiples. can gain traction throughout the rest of the permit is going to do very well for the stock. that is why i looked at a strategy that benefits from that. what you do is you sell the $640 put in january of 2016. premium to buy the 760 call on the stock to have the unlimited upside. put in a car space lower than where it was. julie: it is interesting that you're going after january of 2017, because this is the stock that has not been moving on the fundamentals. it is moving more in tandem with its peers. predict thelt to future, but how much of a risk are you taking that it is just going to move with the market and not on this fundamental strength that you are seeing? >> that has a great point,
because tech as well as financials are the sectors of the s&p 500 that is the s&p 500's going to move you need his leadership to take it with it. what you are doing here is you get a cheap way to play this brady cost less than 5% of the stock. if you do not want to go in and spent the entire amount, you are going to have the unlimited upside with it. it is a great way, if you're bullish and using proceeds to make it cheaper. julie: we will see what happens with stocks overall. thank you. we will have more bloomberg markets coming up next as we approach the closing bell on this friday. ♪
bloomberg world headquarters in midtown manhattan, i'm scarlet fu. mark crumpton has her first word news. jersey governor chris christie endorsed donald trump for president. christie's campaigning today was trump in texas. meantime, south carolina governor nikki haley said she would support donald trump if he wins the nomination. haley has endorsed for senator marco rubio, who she says can overtake trunk. and the former transportation newetary and the former jersey governor have endorsed john casey. a new poll shows that most americans back the government and its attempts to compel apple to unlock a terrorist iphone. shareholder meeting, not one person voice displeasure or -- or disagreed with tim
cook's actions. gunman entered a hotel in the capital of mogadishu. nine civilians and five islamic extremists were killed. it was located across from the presidential palace. claimedab responsibility for the attack. the nominee for the vacancy on the u.s. supreme court will not be announced before tuesday. that is what obama will meet with the republican leadership. josh earnest made the comment about air force one as the president was headed to florida. beat withent will mitch mcconnell as well as chuck grassley who was chairman of the senate judiciary committee. they will be joined by harry reid patrick leahy. patrick leahy is the singular
ranking member -- senior ranking member. scarlet: thank you. u.s. markets set to close in less than 30 minutes. a mixed session with the s&p and dow losing ground, but the nasdaq holding onto gains. let's go to abigail doolittle. tell us why the nasdaq is outperforming. >> it is because of biotech. technologybiotech index is up nearly 1%. the week has been a bit of a seesaw. it is right now on pace for a weekly close of higher than more than 1.5% for the second week we gain -- weekly gain in two weeks.
this is being driven by they contacted, including amazon, facebook, apple and intel. shares of the chinese internet technology company are down more than 10% on the week after the company actually be fourth-quarter earnings in revenue estimate by gross margins were done 18% on a .ear-over-year basis all of this has taken shares back below the two of day moving average for something that would be bearish. have typically recovered pretty quickly after the most we want to see what happens. dragged onhey shares of baidu, but this is not one of the performance of the nasdaq on the week after a great fourth quarter. up 33%ere year-over-year, and it looks like the investments in mobile are really paying off. that accounted for 56% of revenue.
investors also like the recovery they are seeing in margins and the movement possible segments. about thean talked idea that they could have commercialized self driving cars in a few years. scarlet: green arrow right there behind you. another company that will be reporting earnings is costco. that comes next week. we have seen the stock decline ahead of that. >> investors are looking for low single-digit single -- sequential growth. but when they are looking for his recovery. a pretty negative fiscal first-quarter a few years ago. it was written by slowing membership and currency headwinds. today there is a downgrade to neutral from buy. not a positive side the head of that earnings report. we will have to see what happens. scarlet: thank you. finance ministers and central bankers from 20 of the world's largest economies are gathered in shanghai right now for the g-20 conference. earlier on they spoke to goldman
sachs coo from the sidelines of the conference. the u.s. economy is back to precrisis levels. my view is the u.s. is better than people make it out. the u.s. consumer is still very strong. the fact that we have this wematic price cut in oil, have taken the price of oil from $140 to $30, which transfers to roughly to the pub in the united states, and the consumers of the inted are seeing that disposable income. the consumers are pretty good at selling their disposable income. when you look at the durable goods sales numbers, we have seen the retail can you are spending money selectively, which is strong enough to keep the economy going. great growth,t but i do not expect recession.
i think a lot of it depends upon the strength of the dollar. right now the u.s. has been one of the few countries that has been willing to have a relatively strong currency. if we continue to have a stronger and stronger currency i think that will take growth to the lower end of the spectrum. if our currency falls more and long with other currencies, we could be in the higher end of the spectrum with growth. dollar drive up last year. it is tapered off a little bit now. are these a sustainable levels? >> is going to depend on monetary policy. there is a lot going on with central-bank policy. here,k the g-20 meeting one of the topics i would be talking about, if i were a ofber, is more coordination global monetary policy. we have global problems with growth. we cannot fix these with local monetary policy. we have to talk about monetary
policy will global today than we ever have. >> does is still working, monetary policy, all guns blazing, with the exception of the fed, we want to get into the details, but we are looking at seven years of rights -- rates being at these levels. we have been five to seven years, and even longer if you look at japan in places like that, a relatively low interest rate, and almost no inflation. that leaves one to question how effective has this monetary policy again. what this monetary policy has been more effective at initially is countries trying to use their lower interest rates, i believe to lower their currency to try to grow their economy at the expense of another economy. what has happened is every other central bank has then lower their interest rates to not allow their economy to be the victim of someone else's growth
if you look at the five to seven years, that is what has happened. interest rates across the board, and we do not hire growth, and we don't have inflation. if you take the scenario, you see our historic policies are not working. why is that? it is relatively simple. if you look at what has happened in the last couple of decades of transparency we have in markets, and the amount of markets is extraordinary. almost every investor in the world, on their mobile device can real-time see the price of every asset in the world. and can real-time train every asset in the world the extent that one currency as high relative to another, they can trade that. they can arbitrarily make that move. the market has become so cris
does effective at achieving the slight differences in the world that it has taken away the effectiveness of local monetary policy, and we need much more of a global approach to monetary policy. >> want to do for the fed? we can talk to the effectiveness of monetary policy, but at the moment people have started to talk about the debt. does the need to counter this aggressive policy from all the other central banks, and maybe even reverse course? china, more or less in the two countries left the have allowed the currency to be relatively strong versus the other countries. that is a tough position to be in, where the value of your currency is being dictated by the actions of others, not by your actions. thatnk that is something the chinese are contemplating, i think it is something that the fed has said pablo -- contemplate. are they in a position where
they have a currency with the right level of economic growth and potential economic growth for the united states. that is something that they are looking at as well. scarlet: that was the chief operating officer speaking from the conference in shanghai. we have a lot more coming up from bloomberg markets. a quick look at oil and gas prices for the week. still higher for a second straight week. ♪
the day lower. -- course fore the second straight week of gains. the g-20 is taking place and we will continue to monitor for headlines out of that event. today we also got the latest reading on the fence preferred gauge for inflation. my colleague joe weisenthal joins us with three choice for tell you the story about inflation. everybody knows at this point that the fed has not been hitting his targets on inflation. it is doing pretty well on the employee side of its mandate, the on other sites not so much. these are two different measures of core inflation, stripping out volatile food and energy prices. with this core cpi right here. it isrunning about 2%, the fence preferred measure of inflation.
it is starting to shoot up here, host 1.7% and with that is the fastest rate in three years. why is there a gap? there are two different measures of inflation that are weighted differently. if you look here, you can see that an core cpe, the preferred measure, 17% is in health care. that is the highest of any single race. it turns out that health care inflation despite all the talk, is muted. look at the trends in health care inflation. if we go back to recent producer price index, this is a chart of healthcare services, you can see that for quite some time health care inflation has been trending down. but in recent months that has been shooting up, and that beginning of the trend could get into the fed's preferred measure of inflation and help the fed and get to where it wants to be that 2%. scarlet: thank you. health carempare costs, and how it has been climbing up as a joe manchin
with the core cpe, you can see orange line of health care, which lacked behind the core, has starting to turn off. that is what the fed wants to say. joe: absolutely. it is incredible that for so long we talked about how health care is spiraling higher, but inflation is one of the more muted categories. that rising starts to see it explains why in part the fed with so far away from its 2% target. because start to turn, maybe they will get to their target sooner. scarlet: the latest reading was for 1.7%. it is not that far. joe: especially we see some turnaround and other stuff. scarlet: just a stones throw away from 2%. in terms of data, we have seen inflation, especially last week's data, showing that prices are starting to rise.
inflation expectation has been pretty muted. people are still very much driven by oil prices and where they are headed. joe: if you look at market-based measures of where inflation is expected to go, it is very almost noflation -- inflation, and it is a measure largely to run by oil and by oil has had a good week, and they will see turnaround there as well. scarlet: you can catch more of joe, alex in and i on one did you miss -- what did you miss? brady won the g-20 meeting, and what to expect. scarlet: and in a conversation about ireland. stay with us. in the meantime, the close of trading just minutes away. here are the major averages. the nasdaq holding onto a gain of 12 point. ♪
scarlet: this is bloomberg markets. it is time for the lumbar business flash. the biggest business stories in the news right now. fors out of africa barclays, which is planning to exit as african business as part of an overhaul of the firm. that is according to a person with knowledge of the plans. an announcement could come next week. german beer girls are rejecting says they have found traces of herbicide in the beer. they pride themselves of using mulch, hopswater,
and east to provide their beer. the death of antonin scalia is having an impact on a case involving dow chemical. the company will pay $835 million to settle an antitrust case. disputed it had conspired with other chemical makers to fix prices. it asked the supreme court to take that case on appeal. justice scalia has voted to scale back the reach of such groups. that is your bloomberg business flash of days. we have 10 minutes to go before the market closes for the day. julie hyman gives us a last-minute check. julie: we have had a bouncing session between gains and losses as we had to the closing bell we have the nasdaq in the plus column and the dow and the s&p column..gative index looking at its
points wednesday by dave. 17 points as the range today. the fact that we have seen in incidents of that very tight range a couple of times in the last couple of weeks is another way of illustrating that the market has called to down to some extent. one of the other measures that would be the vix coming down to some extent. on the week we are looking at another game for the s&p 500. the bottom for stocks was put in at least for now. we have seen it bounce since then. today, a couple of stocks that are not going higher are coke and pepsi. both of them are being downgraded. it is aase of coke valuation call. in the case of pepsi the analyst is not optimistic there would be consigned of -- some kind of breakup of the company that would unlock value. we have banks going higher today. a rebound effect. in whichy a role
direction the indices are going on a given day, but the s&p is going opposite direction for the moment for banks are going today. all we also have to look at what is going on in the rates market. indicate inflation in the fourth quarter as a part of gdp and also left month -- last month with the numbers we got. the dollar going higher as a result versus its major trading partners. the pound resuming decline. the euro decline a inflation data in the eu as well, falling. we see the dollar strengthening against the yen. a quick check on commodities, and on today for oil, which was earlier higher. as we see this more risk on environment to some extent and the dollar strengthening. copper hanging onto gains as chinese officials talk about stimulus. scarlet: a fantastic wrapup of the day and week. thank you so much.
we are the final stretch of the trading day. equities ending up for a second straight week. its low on% since february 11. reportersbring in our for more on whether this rally will last. , oil prices.ng we have seen the return of the correlation between stock prices and oil. this is something that has puzzled investors and analysts, because typically a move in opposition. seeing this to the extent that oil has profited and shocked markets desk plummeted and shocked -- has plummeted and shocked markets. we have data coming out saying there might be some cuts in production. investors, and a lot of them are dismayed. this correlation between oil and stocks seems like it is here to stay for a wild. scarlet: when we look at industry groups for the week,
when you look inside bloomberg for an instant, materials and consumer discretionary, health care, these are cyclical groups. those that are highly leveraged to the u.s. economy. we talked about how losers has become winners, and to keep switching back and forth. like you mentioned, we saw the worst performing groups of the year take the lead, and run with it. materials respond a lot of the time to new set of china, which also filters expectations of growth. we are china doing well, materials will do well as well. that boosts stocks, and that plays into this whole idea that people are still thinking that , but is a little bit more the downside is it could be time to cut some of those profits. scarlet: short covering is one argument why this is not sustainable. the volume is another story.
julie has told us how holy was below average. >> the numbers from the beginning of the year to february 11, versus these past two weeks, we have seen it 13% lower. this is a rally that is not have e much conviction behind it. like chesapeake, which is one of the most shorted stocks in the s&p, and also the biggest gainer for the week. that is playing a significant role. figure out aave to way to chart this, if you want to compare the vix to its bond counterpart. there is a ratio there, and it is fairly low. >> joe wrote a really good piece on this earlier this week. ratio is the losses 2013. what that means is that people are paying the least since then for protection against equities compared to the bond counterpart. we see something like this,
people will ask why we see are seeing this, and that's because equity market is rebounding and little too fast. it is little too precipitous of a rally. people expect the vix to go back up because it does 80% of the time move in bursting with the stock market does. i expect to see the normalize sometime soon. thank you so much for joining me today. we are expecting a down close for the s&p and dow on this friday while the nasdaq is still holding onto its games. that doesn't for bloomberg markets. averages, still holding on. we will see you back here in just a moment. ♪
scarlet: u.s. stocks erasing earlier gains. oil wraps up is the best week three at. joe: the question is, "what'd you miss?" scarlet: are we seeing a bounce off of all of the negative sentiment, or is the start of a new global market? joe: the currency interventions actually work? our guest says monetary policy is not the same. government for ireland. will they keep the economy on track? scarlet: overall for major indexes, good, but the dow and sap could not hold onto gains. you have materials, financial, energy, and industrial. they highly leverage the economy. these are some of the biggest losers. joe: