What is happening in the u. S. Where indices are off their lowes of the day. Still a sea of red across the main boards led by greece. Italy is down by 1. 5 . Portugal 1. 9 lower. The stoxx 600 falling for the sixth day. It was down by 1. 6 and the biggest drop since september 2016. The biggest today slump since july 2016. We had the biggest weekly slot since november 2016. The dollar is in the ascendance today with all these currencies trading lower. Bond yields are declining so the haven that is bond yields, that trade is working in the bond markets favor across europe. Commodities and cds is your final two columns. Ryan air boosting its net income by 12 to 106 million in the fiscal third quarter. It launched a 750 million share buyback. On carrier valley not to add the costs of rising labor and fuel to its customers. Easyjet is forecasting summer fare increases over the demise of rivals. Ryanairf executive of morning today that he is willing to endure pilot walkouts rather than then to any demands that would threaten the lowcost carriers business model. Shares down by 2. 2 today. This was the big data in the u. K. Today. Services growth weakening more than expected. Tossing some doubts on the economy following some positive figures. 53 ins pmi for services january versus 54. 2. That is the lowest since september 2016, well below the economists estimate of 54. 1. We had reports showing a slowdown in manufacturing and near stagnation and construction. Company that releases this gauge suggests that Economic Growth has set sharply. Mark carney in the bank of england releases its quarterly Inflation Report on thursday. Inflation for commodities may not be as rosy. We have the key measure for hauling bulk materials dropping to its lowest level since last august. We are talking about the baltic dry index, the gauge of materials near a fiveyear high. That is the bottom chart. The metals index is the baltic dry index. It also does fall in january as orders slow ahead of the chinese new year. They have seen a disconnect between the index and the crisis of industrial. And julie wille know this where we talked about the baltic dry index on a regular basis. Not so much now. Hows it looking over their . Julie i guess its all bit point out. We are looking at a dramatic turn in u. S. Stocks as all major averages fell out of the gate. They have been pulled back from the abyss. The nasdaq is really what pulled them back. We have the big cap tech stocks that have now been dancing. On an look at the nasdaq intraday basis come you can really see that huge swing that we saw. Out of the gate trading sharply lower than bouncing higher as the early session progress. The catalystr what might have been here, but if you look at the largecap tech stocks, you can see the strengthen them. Week ofuncing after a concerns over the iphone x. Amazon. Com continues to trade near a record. It has been teflon to a large degree. One day last week and outperform the overall market. We have a number of proposed deals this morning. The Qualcomm Broadcom saga continues to be quite interesting as broadcom raises its bid for qualcomm to 121 billion or 82 a share. Qualcomm is down and trading below those levels. Broadcom is saying this is the last the best offer. It looks like theres not a lot of confidence this deal is going to get through. Theres reported upon deal with Archer Daniels midland said to be an advanced talks to buy b unge. The market cap today about 11 million here. Glencore had raised the idea of a merger last year and there could be some sort of bidding war that does emerge. As we watch this bounds at stocks today, there was some commentary from ubs. Ubs saying it was not the time to sell stocks after we saw the selling happened last week. Thats because according to ubs strategist the Global Growth that we would see what offset any rise in rates. Ubs also says keep an eye out for bond stabilizers. What you have here is stocks and blue and u. S. 10 year yield in white. We have seen something of a stabilization today. The yield are certainly not rising at the same pace they were last week. That might also be perhaps reassuring some investors today. Mark thanks a lot. Stocks in the u. S. Continuing their threeday selloff of myths decline. What assets are performing well . He is a contributor to bloomberg profits. Thanks for joining us today. We are off the lowes in the u. S. Lows inly off the europe. Is there further to come or are we nearing the end of the five or six day selloff . Thanks for having me on. The selloff that we had seen last week was natural, but more important a rational response to an increase in real rates. Real rates tell you everything about how assets should be priced, how risk premium levels should be set because real rates represent the cost of capital for companies. Real rates increase, it makes it increasingly more difficult for companies to generate excess profits. The key question here is what is the trajectory of real rates going forward, and more importantly, what is the speed of that trajectory . We pay a lot of special attention to how the derivative markets are pricing Downside Risk as well as upside risk for various asset classes. Currently based on the level of risk implied by options when it comes to the downside for is still there i quite moderate. The increased from very low levels to more normal levels. This is all part of the normalization. To answer your question, we dont believe we are anywhere near a point where you could see a sustained pullback in equities. Mark thats a big call. As many are saying, this is a healthy correction. Are you not concerned it might turn into an unhealthy correction . Ashwin right now, no. Rates are going to be that variable, which will dictate how painful the correction is. Governed ands are dictated by central bank activity. If Central Banks begin to raise rates, drain liquidity very quickly, you can see a sharp increase in the real rate. And that is when the economy can and theuite fragile vote is still out on whether the economy can handle higher real rates. Real rates still right now are quite low in the u. S. They are sitting at about 70 basis points. In europe they are sitting close to 100 basis points, which is why financial conditions, even though rates have backed up since december 2016 remain very accommodative. Mark youve got some interesting calls. European equities are your least attractive. K. U like the ukip theres. Theres a bit of a contrarian and you. What is going on . Ashwin this is indicated by how that market is pricing be upside and downside. Europe is likely to be the next major region that moves from a regime of highly accommodative Monetary Policy to tighter Monetary Policy. Its not clear just yet whether the european economy can handle increased real rates and whether they can even handle positive real rates. The real rates in europe has been negative for the past many, many years. So the vote is still out. This is why we are a bit nervous with europe right here. The u. K. Is quite far from entering a tightening campaign. As is japan. Mark we believe that there. Thank you for joining us today. Head of global Asset Allocation and Risk Management at janus anderson. Vonnie time to check on the bloomberg first word news. Heres courtney donohoe. Courtney President Trumps target on twitter today is adam schiff, accusing him of being one of the biggest liars and leaders in washington and says he must be stopped. Calls his tweets false smears. Two senators will introduce a plan to solve the issue of young dreamers. The bills from senators john mccain and christopher tends dreamerant the permanent legal status and increase security along the border with mexico, but it would not pay for the wall that President Trump wants. Theres a report that american troops have started to pull out of iraq. According to the associated press, the drawdown comes following baghdads declaration of victory last year. The presence says in iraq will be based on conditions in their. The only surviving member of the Islamic State attack refused to rise for a Belgian Court today or answer questions about his actions. It was his first appearance in public since his arrest nearly two years ago. S on charges in his hometown of brussels on charges of attempted murder for a Police Shootout which he fled. Global news 24 hours a day howard by 2700 journalists and analysts in more than 120 countries. Im currently don courtney dono. Mark why the head of Morgan Stanley says he deserves in a minus or in a plus for running the bank. This is bloomberg. Mark live from london, i am mark barton with the european close roughly 15 minutes away. Vonnie in new york i am vonnie quinn. James gorman has never shared frommuch about himself growing up in australia to his annual fitness test to the historic rivalry with goldman sachs. He has now. Its all in this months Bloomberg Markets cover story. Erik schatzker interviewed gorman for the piece. He is with us now. What surprised you most about these sets of interviews with gorman . Erik heres what i would say. We like to think of these wall street ceos and caricature. Masters of the universe, viciously competitive, thats what it takes to get to the top. In gormans case and i suspect o, what is elsewhere to discovered is that underneath all that is a human being. Is veryple, he competitive with himself when it comes to his annual fitness test, which you just mentioned. He is obsessed with the ergonomic. Meter. Hes only interested in competing with himself. He calls it the annual mark to market with his fitness. Back in 2012, you may remember Morgan Stanley was not on the verge of collapse, but movies had threatened to dow downgrade Morgan Stanley by three notches. If moodys had downgraded them, they wouldve been out of business because he would not have been able to fund themselves. He was in russia when he gets it was onlyt downgraded to notches. He was staring out the window this lonely person with nobody to celebrate with and he is mentally communing with a guard who he concedes standing on the banks of the canal and st. Petersburg. Something i got to do about this and goes downstairs and orders a glass of wine at the bar. Finally he subsequently tells me that the Morgan Stanley team in russia find out about this and comes to meet him at the bar and they all stay up a little bit late. Vonnie i love that story as well because 2012 is not that long ago. Now Morgan Stanley is surprising everyone on the street. If you look at fixed income, the irony is that to be the biggest winner in the next several years. Erik well, people like to think that Morgan Stanleys fixed income franchise was dead. If you go back only a couple of years, it did look like it was on life support. But he did what few other ceos on wall street were prepared to do, which is cut his way to victory. The riskweighted assets and their fixed income business by Something Like two thirds. They sold off their commodities business. In the short run, it did make them seem dramatically less competitive relative to goldman sachs, relative to jpmorgan, relative to citigroup, relative to bank of america, but look at what happened in 2017. All of a sudden Morgan Stanley was backed in fixed income trading. The firm narrowed a historic gap in market cap between Morgan Stanley and goldman sachs. If any from on wall street looks like its on a roll right now, its Morgan Stanley. Mark i love the middle manager story. Maybe you could quickly tell us that. This is a double question. Tell us the middle manager story a. Kly, but he gave himself tell us the middle manager story. Erik he grew up in a very large family in melbourne, australia. His father was an engineer and very competitive and instilled Competition Among his siblings. An iqy he gave them all test and he posted on the wall the results of the iq test. With it what his father predicted every one of his children would end up being and he predicted james gorman would be a middle manager. A few years ago, at his fathers 90th birthday coming he had one of his siblings raise a glass to his dad and somehow in the course of that, it turned to james gorman and james gorman turned to his father and says, i think i made it, dad. To answer your question about a minus versus a plus, he has done what all shareholders would agree is a tremendous job come a closing that gap with goldman sachs, restoring Morgan Stanley to 10 r. O. E. , return on equity that is, but he is critical of his own performance in areas where frankly it deserves it. He says they were too slow to sell off the commodities business. When he got to the ceo chair in 2010, he was too slow to ofemble the right team direct reports to help him run the firm. Managementt of asset only now to realize that Asset Management is a business that Morgan Stanley should be building and not shrinking. They cost themselves a few years of competitiveness there. Vonnie i love how you say to them that you didnt mentioned the stock price and he says you cant manage the outcome. You manage the input. I have the stock phone on my personal iphone or ipad look at four different ways and two seconds. We have to leave it there, but its a fantastic cover story for this bloombergs markets magazine. You can read that full interview in this month edition of Bloomberg Markets. Mark a great read. Still to come, heres a check on both the u. S. And europe stocks. Its a better sort of picture in the u. S. As you can see. The nasdaq was up and s p did a race its losses for the days. The european stocks are marginally down as well. They are off the lowes of the day. The closes nine minutes away. You can see it right there. This is bloomberg. Mark live from london, i am mark barton with the european close a matter ma of minutes away. Vonnie from new york, im vonnie quinn. Call it the silla concealing with only a quarter of positions and jobs in the sector and female lead startups just received 2 of funding from venture capitalists. , theding to the new book industry sabotaged its own highflying a female talent. Chang and is emily she joins us now and studio in new york. A fantastic book and a great it. , all 260 pages of i feel like we have caring about inequality in Silicon Valley for a long time. Why did you write a book now . Emily ive been covering Silicon Valley for eight years and men and women would often talk about the sexism, but when you got on camera, no one said what they had to say and it just struck me how this industry could have such a grave inequality. The more i started doing research, the more i realize everybody has an opinion on how we got here, but nobody has the answer. The book pulls together historical, cultural, social, economic forces that led us here. As you mentioned about the pipeline, one of the popular myths is that women dont want to do these jobs. The stereotype of an antisocial male nerd was set in the 1960s and 1970s when they hear have these filtered personality tests of people who dont like people and you will hire more men than women and there is no evidence to prove that people who dont like people are better at computers. Vonnie remember way back when when one of the first facebook employees, a woman, released her story and so this is what it was like and not what i was anticipating and that opened the floodgates. It went to show that women were being hired early on. What happened to the rest of the women . Emily as i talk about in the book, a lot of women do leave. Unfortunately women quit twice as often as men do and leave the industry 12 years into their career. They are not going to take care of their kids. Theyre going to jobs in other fields. The woman youre speaking about was very courageous because at the same time, this is an industry that is creating such Amazing Things and really is changing the world in so many ways. I fully believe that the people who change the world and are taking up tomorrow and building self driving cars can change this, too. They can hire women and pay fairly. Vonnie how optimistic argue for change and not change down the road but change in the next year or two . Emily everybody can do something today. Im an internal optimist as long as this has gone on and i believe that, first of all, bad behavior needs to stop being tolerated and enabled and normalized really. Ofs need to take control the situation and lead on this issue from the top i hiring and promoting women. We need to change our idea of who can do this job. Vonnie our thanks to emily chang, author of brotopia. Its on shelves tomorrow. This is bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Mark live from bloombergs European Headquarters in london, this is the european close. I am mark barton. Stocks finishing the session. Its a sea of red as you can see across the european landscape. With theay of declines stoxx 600 falling with the biggest drop since december 2016. The worst stretch since november last year. The biggest today slump since 2. 8 . 016 and dropping friday ended the largest weekly fall since november 2016. Barrage of statistics and volatility up as well. The european volatility gauge fear gauge up for the longest stretch since april 2016. I just want to show you some data. We had eurozone data today with economic momentum and the euroyen area surging to the fastest pace in a most 12 years, pushing firms to pile on the most additional work since the start of the millennium. To composition pmi rising 58. 8 and january from 58. 1 in december. Unexpectedly beating the previous flash estimates. The revision mainly driven by betterthanexpected momentum in the services sector. Companies continuing to accumulate orders to push them to the limits of their capacity. The market says the rapid pace of job creation is likely to help growth become less dependent on monetary support. That is the data out of the eurozone. According to julius baer and cibc, the frank is likely to reverse last month rally to weaken to 1. 20 against the europe. We are at 1. 16 today, at a level not seen since they announced the ceiling for years ago. You remember that day. Banks previously among them most positive forecasters for the franc as the s p lags its peers. We talked about currencies and the stock market. Lets talk about the bond market. This is the german tenyear yield, which is coming down. We are seeing bonds rise and yields declining across the European Space today. Yields down by three basis points. We are down to 74 basis points today. Perspective into because on friday, the yield on the german tenyear rose to its highs level since september 2015. In the last couple of weeks, the yield has risen by 20 basis points. Thats the action across the European Market space. Vonnie we are continuing on the side of the pond to see a repricing and certain asset classes. You can see with the japanese yen at 110 point away, the dollar continues to move. Thats a couple of big figures that we have moved on the yen is stronger just a little bit today yields why we are at 2. 85. We might see shift in the bond market, but we are in the safe zone for now at least. 72 plus basis points. That is 20 basis points steepening in the last two sessions alone. That is really quite striking even as we see crude oil at 65 point of five. 05. Crude oil is backing off a little bit. You can see the currencys that are attached to the commodity trade with the russian ruble for example all weaker on the session. Its a sea of red and at what he markets around the world from france to japan to australia to south africa. Really all kinds of markets, except for the u. S. Hippy. A little bit wit the market trying to figure out where it wants to go this february. Mark as i remove my market stats from my mouth, there you go. I have two words for you. Healthy correction those are the words of the day. The consensus so far among top market guests today on bloomberg. This correction is not really that much over supplied. We think we are level from where it corrected. We are not really where we expected it from. The timing was probably a week early. Risingthe bond yields and that is slowing a little bit into equities. It is all textbook stuff. It doesnt concern me at the moment. I think it is something we should be expecting. I dont think its a bear market yet. I think you will see a correction after it had gone up. They cannot go up irreparably without correcting a bit. You go market by market and sector by sector. I think a minor correction like this is pretty healthy. Mark Paul Thompson is here. Seems like a long time ago that paul posted a wonderful post. He posted a post all about the two words, healthy correction. I hope we have the chart that you can tell us about it. Paul i was looking how many times that has appeared in stories recently. It turns out a lot more than we have seen over the last five years. Everybody is saying its a healthy correction like its nothing to fear here. Markets have a habit of going down occasionally. That kind of happens. It allows us to catch our breath and get ready for another by the debts moment. Whether this is different or not, thats certainly in a lot of the commentary so far and nothing to fear. Mark i used your question is goldilocks dying . You posit the expression if goldilocks is dying, blah blah. Is goldilocks dying . Paul inflation is the bogeyman. Yesterday it was all about this goldilocks environment not too hot, not too cold. That is the meaning there with the idea being that inflation is contained and growth can carry ongoing and Central Banks dont have to put the brakes on to quickly. The problem is this year theres just a few more signs inflation is on its way back. We had the jobs growth and the growth in hourly wages in the u. S. That came out on friday. Just before that we had the ecb. Not too worried about where markets are because they see signs of inflation coming through the economy as well. The bank of england, for example , looking at the possibility of raising rates more times this year. Thats enough for markets to feel a little bit more worried and the little bit anxious of the situation we had in 2017 may be coming to a bit of an end. Vonnie is there a a lot more pain to come in the very near term . You and a lot of people are talking about a correction whether its healthier not. Thats more than a couple of Percentage Points and really over down in the u. S. To or three Percentage Points in the last few sessions. Paul textbook definition of a correction clearly is that it tends to drop. Maybe people are using the word lightly am thinking about the idea that this is just a setback or whatever. Obviously we are little changed again today and the u. S. Markets. Not really deciding which way we are going to go. Seems a bit noncommittal with people catching their breath and that kind of thing. Markets have an annoying habit, dont they . Theyre going up and nobody wants to believe that they will carry ongoing. Theyre waiting for that moment to buy and it comes to point where you think im just going to have to join in. Just as the last person joins the valley, thats the moment where it takes a step back. That is why people think it can be a healthy correction and people have joined the party too late and they are the ones that may be ruining their johnnycomelately approach. Vonnie have you seen any reaction to Janet Yellens comments that perhaps real estate prices, commercial real estate prices in particular, are maybe in a bubble . She did not say that, but she was deftly concerned about it and other asset prices, too. Paul its interesting that yellen is having to put out the idea that markets have the potential to fall. The fed is not really worried about that. A lot of the time through the earlier years of the fed exit, there was this idea that there was a fed person that had to back the markets when it started to turn down or went in the other direction. Or being completely synthetic to the outlook. I think we are feeding more and more that central makes are stepping away and letting markets turn for themselves. They are not so worried of the heat does come out at some point. Mark great job. Thanks for joining us today. Paul dobson. Wonderful compendium of information. Market slides on the bloomberg. Vonnie lets check in now on the first word news with courtney donohoe. Courtney Jerome Powell has been sworn in as chairman of the Federal Reserve. He replaces janet yellen, who was not reappointed by President Trump for a second term. Powell outlined his goals in a video message. Today unemployment is low, the economy is growing, and inflation is low. Through our decisions on Monetary Policy, we will support continued on the growth, a healthy job market, and price stability. Courtney powell also promised better communication with the public. President trump is citing protests over Health Care Funding and United Kingdom to attack democrats for pushing for universal health care. On twitter today the president said democrats want to greatly raise taxes from really bad nonpersonal medical care. Thousands of people marched in london saturday, demanding more government money for the uks overburdened National Health service. Boost oilady to production if opec decides to lift limits on output. The countrys oil minister says iraq can raise daily production by at least 100,000 barrels within five to six days. Opec and producers such as russia meet in june to decide whether oil prices are high enough to abandon their oil cut agreement. Economic momentum in the euroyen rose in january at the fastest pace in the most 12 years. Ledrding to markets, that companies to add the most workers since the turnofthecentury. Europes expansion has been helped by a pickup and global trade and ultra low borrowing costs. Global news 24 hours a day powered by 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Mark things a lot. Mario draghi is the president of the ecb. He is giving his Opening Statement to the European Parliament. He says the ecb still cant claim success in its struggle to restore inflation in the euroyen area despite bureau area despite strong Economic Growth. We will discuss in just a minute. This is bloomberg. Household incomes rise. This has helped to strengthen private consumption growth. Mark live from london, i am mark barton. Vonnie in new york, i am vonnie quinn. This is the european close on Bloomberg Markets. Time now for stock of the hour. Fargo are thes biggest loser in the s p 500. The Federal Reserve stopping the bank from growing until it addresses its shortcomings. Joining us now is taylor riggs. A real slap on the risk for wells fargo. Enough,interestingly while having its worst day since 2011, its been up a little bit. If you want to call it a little bit of a recovery, there you can. There is some Headline News and in the fundamental news. The analysts we were looking at were really looking at the fundamentals behind this what the bank coming out and saying they can shave off profits 300 million to 400 million this year. This years profit on the terminal update, we have it forecasted at 24 billion. Last year profit came at 20 billion. That can be almost a 2 cut, shaving off of that. That led to some street downgrade ts. You had Morgan Stanley cut to an underweight. One of the lowest was down to a price target of 50 a share. This is bracing for further press the kleins. If you come into my terminal here, we have charted the major performance of these banks over the last six months. You can see wells fargo is turquoise. Down here i can point with my mouth in blue. You can see a little bit of an increase here in january. We had earnings coming out with relative outperformance relative to citigroup and goldman. Take a look at what is happening. Today that is dragging it down. You have only an 8 gain versus some of the other banks that are dropping anywhere from 15 to 30 . Vonnie no one likes handcuffs being put on and say you cant grow, but in a way, this could be a gift for wells fargo. Now i can concentrate on that site fix Everything Else about its operations. Might it be a time to get in . Taylor some analysts were saying that the financial burden was not that bad. Interestingly enough on the deregulation side because the fed acted so quickly, now you can still see some Political Support for deregulation. Congress can say we can still go ahead with this is the fed was so strict on putting some of the. Anctions on wells fargo the financial burden is not that big of a deal of perspective. Vonnie taking his medicine is wells fargo. Thank you taylor riggs for the stock of the hour. Mark ecb president mario aghi is addressing people in strasburg. He has stressed data dependent decisions, supporting further fiscal integration, acknowledging the elusiveness of 2 inflation. The western Bank Team Leader is with us. Inflation andth the elusiveness of inflation with the much talked about topic. The economy is strong and inflation is weak. Speech to the European Parliament and strasburg and the indications that are any policy changes will be data dependent and time consistent. No more hints at all as to how fast the ecb will get towards signaling and unwinding its extraordinary stimulus. Mark its an interesting couple of years because theres a lot of different personnel and the main ecb position and a couple of years time. Mario draghi could be quizzed by european lawmakers, cant he . It will be fascinating to hear what hes got to say about some of those thoughts that are going to become vacant. Paul yes. Dont want to give much away. Dont forget that the ecb does not have a formal say in the decisionmaking. The next rollout is the Vice President that becomes available as of june. Its a talking point among European Parliament members and they may ask them what he has to say. Are that no women appeared to be on the shortlist and theres a battle in spain that needs to be resolved, but the ecb gets to talk to governments. He gets to give its own personal opinion behind closed doors, but it does not get a vote and mario draghi is likely to make that point. Vonnie im going to show our viewers chart 007 on the bloomberg. Its the banks and the inflation target and where they are at. The boj is obviously the worst performer there. The ecb is next worst. What is the outlook for boosting inflation . Is there any hope . Where will be see the first signs of it . Paul when you look at some they are surveys, finding that price pressures are coming through. The use of pmi put out every month and they show that happening. We are seeing wage talks underway in germany at the moment. Looking for 6 wage rises in the engineering and metal sector. Thats a pretty big hike and it would come with labor flexibility. Germany is running full employment. What works in germany should at some point work later on in other countries. Thats the key for the ecb. They are still confident they are going to get there. Vonnie when it comes to the asset purchase program, we are seeing a shift in the mix. Corporate bonds and publicsector bonds being shifted around. How is that impacting at a more micro level corporations and governments and municipalities in the various countries . Paul there is an argument that the Corporate Sector Purchase Program is a quicker way and more effective way of getting money into the real economy than going by Government Debt or assetbacked securities. The ecbs the case, then is going down a route that should be hopeful for the economy. Its cutting back on its publicsector purchases and its continuing to buy corporate sector debt after slowing the entire quantitative easing program. We have been waiting for a while to see what kind of mix would come through. This is roughly in line for what you might expect. Shortages are another issue. You will run out of Government Debt so that may be another reason. Mark he is also weighing in on banking union. He says its important to complete the architecture of the european union. What hope is there for progress on this front . Thats once we have a German Government in place. Paul you can almost sense the frustration with the ecb over recent years. The ecb has been very active in providing monetary support that allowed the economy to revive. It insists that you need to have a more resilient economy in the future with the Financial Sector and a resilient real economy as well. That requires performance and they have not been coming through. The completion of the your area with common deposit to insurance that he says is absolutely needed. That is all decided by governments and not technocrats. Those talks may go on for some while unless you get some german franco corporation really getting underway and pushing some of those through. Mark the president himself will go on for some while as well. Good to see you. Paul gordon, bloomberg western european Central Banks team leader. Once coming up next . Battle of the charts. The market selloff faces off against techno currencies and politics. This is bloomberg. Mark time for the global battle of the charts where we take a look at some of the most compelling and telling charts of the day and what they mean for investors. You can access these charts on the bloomberg by running the function featured at the bottom of your screen. Kicking things off today is christine pitino. Christina crude rally to a threeyear high in january two an advantage from petra currencies. Two are not benefiting so much and that is the peso and that is with the Politics Around the nafta trade deal. Relationship the between crude and petra currencies. You notice that the relationship between oil and the canadian and mexican currencies is slightly weaker than the other two, which means that they are not benefiting as much from oil gains as their commodity currency peers. The outlook for nafta got mark urky after Justin Trudeau said canada is willing to walk away from a deal. If you want to stay on top of this trend, look at the next nafta negotiations. Btv 363. G 23. Mark christine always good at the labeling of her charts. Vonnie let me just check the labels. My label is not the best in the world. However, the chart is very good. Im going to show you why a lot of people are calling this may be a healthy correction or maybe waiting on the sidelines. If you look back to 2014 and 2015 when we got the largeish selloffs, some metrics were a lot weaker than they are. We have global stocks with the price of the msci world index and is down no question about it. On the downturn whereas back in 2014 and 2015, it really went through its 200 day moving average. The same for the price ratio to the 200 day moving average. Back in 2014 and 2015, it was extraordinarily weak and went down below the 200 day moving average. This little gap right here still represents 7 . Still 7 above it so we may have a lot further to run and we may not even be in a proper correction. You can see that chart on the bloomberg at g btv 3604. Mark vonnie quinn tapping into the zeitgeist of our show today. A healthy correction. Drumroll s vonnie quinn. This is bloomberg. Taylor i am taylor riggs. Lets get to first word news this afternoon. President trump target on twitter today is the top democrat in the house intelligence committee. He accused adam schiff of being one of the biggest lies in leakers in washington and must be stopped. Schiff was critical of trump during the fight over the controversial republican memo. He calls the tweet false smears. Two senators will introduce a plan to solve the issue of dreamers who face deportation. John mccain and Christopher Kearns would grant permanent legal status and increase security along the border of mexico, but it would not pay for the wall that President Trump wants. There is a report that american troops have started to pull out of iraq. According to the associated press, the drawdown comes following thats declaration of victory over the Islamic State last year. The u. S. Army says the american presence in iraq will be based on conditions there. The only surviving member of the Islamic State attack in paris refused to r