Understand the need to do this and i thank them for their patients and their support. Patience and their support. This is the weight in a ortiz of the counterterrorism command behind it. There are people who saw the events today who have not yet spoken to us, i would urge them to get in touch. A crime scene will remain in place in westminster until we carry out a painstaking investigation to recover all possible evidence. Forward, throughout the rest of the day, including when people are commuting home and over the days that follow the people of london full cx or Police Officers armed on our streets. This includes our officers working longer hours and i are shifts, alongside the transport police and the city of london. We can call on the support of the military if we need to add a future point. We are in the process of opening a Casualty Bureau to help those people worried about friends and family who may have been caught up in the attack. We are reaching out to communities and leaders across london to reassure them. Our strength of the city defense in our ability to stand together in terrible times. If anyone sees anything suspicious or causes them concern, please do contact us. Dont hesitate. My thoughts are with all those affected by todays attack in as a service we lost one of our own in the attempt of protecting the public and his colleagues. This is a daily plan for but hoped would never happen. Sadly, it is now a reality. We will continue to do all he can to protect the people of london. I will take a couple of questions. We are looking at that later on. Any arrests have been made . With the operation ongoing i will not list the sensitivities. Im sure you understand. The officer attacked, was he one of the armed officers that protects parliament . Yes. [indiscernible] as you understand the situation, when you have had such an awful incident take my son was mr. Bridge the reports were confused with many varying accounts and were still working our way through that. We are satisfied at this stage look like there was only one attacker. It would be foolish to be overconfident so early on. Its a precautionary basis where we are locking of the area and do all necessary searches is so we can be confident everyone is safe. [indiscernible] what we are saying to the public is please be vigilant. No reason to be alarmed under way home. You will see more Police Officers armed out on the streets of london. As well as the Police Officer in the suspected assailant who has died, the other two people who died, did they die unless mr. Bridge or diana parliament side . Die on the Westminster Bridge or on the parliament side . I believe they died on the bridge. Our investigation is now going forward. I will not give any details on that for obvious reasons. [indiscernible] we have an awful situation. An officer has been killed. It would be wrong for us to give details now. Thank you all very much. Mark that was the head of london Antiterror Police speaking to reporters. Emma roth thomas is with us. We have more details on the casualties. Emma four dead, including a Police Officer. The assailant, a Police Officer and to people he thinks were killed on the bridge. The most important thing for me from that was he said they were satisfied it was only one attacker. The area is in lockdown and they continue to surge and all the rest of it, but that does suggest it was a lone wolf. Mark and a further number we have is at least 20 other are injured. We dont know the extent of the injuries. They we know earlier on quoted a doctor at some of the injuries were catastrophic. If i give you some indication. David he said its a daily plan for but hoped it would never happen. He gave us some insight into what will happen in two hours and the next few days in terms of what its going to look like a train stations and the like. Emma exercise security, extra police. And they could call in the army of necessary. That is something that i think in london people are not used to seeing. Mark can we bring in rob hudson at Westminster Hall. It was a point i wanted to bring up earlier. Thisworth stipulating in type of incident it is very rare in the u. K. , isnt it . Rob yes, it is. I was recalling i was caught in the middle of the last one and it was 12 years ago. And then twotacks, weeks after that we had another set of attacks. This is extremely unusual and indeed very hard to defend against. Westminster bridge is full of tourists. Its in the middle of london. It is one of the most famous views in the world. The practical ability to sort of protect that kind of space is very hard. What we have seen in the last decade or so around parliament is a protection oh priority target. Indeed, this person tried to get into parliament and did not get very far before they were shot. Tragically it looks like one of the policeman who was defending parliament was also killed. London areks in extremely unusual. Mark lets bring back from seeing best francine on the south side of the river. You are closer to st. Thomass hospital which is opposite the houses of parliament. Have we seen further movement in the area where you are stationed . Ambulances coming in, coming out . We have not for the last 40 minutes. This is a key position for st. Thomas. There are multiple injured. The suspected attacker is amongst the dead. People dead,r including the attacker but that means they are two we did not know of. The situation is under control. Ec six or seven ambulances behind me. Police coming and going. There is a sense of calm and at the moment the situation is under control. I think a lot of people here, and i know there is a sense that this want to hear from the Prime Minister, rob was saying this was an area that is very difficult to secure. Let me give you a flavor of whats around us. You have Westminster Bridge where we have heard from the met car drove through, mowing down pedestrians. We heard from the french Prime Minister that included some french students. Then it turned onto westminster. On the righthand side of where im standing is the london eye, one of the most popular attractions. Close to that is the aquarium. Day,u expect on a normal hundreds if not thousands of tourists being around here. Rob, let me ask what this means for the business of parliament. We have heard this is confined to this space. This part of london. There was concern about the business of parliament. We had a lot of Movement Towards article 50 being triggered. There was a political backdrop to all of this. As we wait for the Prime Minister to speak, what are you hearing from folks within westminster as we look at the next hours and days . Rob i can tell you the business in parliament right now. Im still in Westminster Hall, the oldest part of the building. This goes back to the norman conquests. I am surrounded by members of parliament, by staff to work here. We have been told we are being held here while the police make sure they can get any evidence that any of us have, any of us are witnesses. Several of my colleagues were witnesses. Only then will we be let out. Parliament was voting when the attack happened. The Prime Minister was voting and was evacuated. I dont know whether parliament will sit tomorrow. I think we just have to wait and see. At the moment it is just too soon to say. There was an atmosphere the others here is certainly this event is over. There was a sort of relaxation. We are just being held here. I suspect we will be held here for several more hours. Mark we are going to leave it for the moment. Rob, thank you for being with us for the last few hours. We did have Scotland YardNews Conference. Dead and 20 injured in the london terror attack. Issa Francine Lacqua on the south side of the river. And thanks to our London Bureau chief emma ross thomas. This is bloomberg. Scarlet weve been following breaking news out of london where police is held a News Conference saying in a terror attack in parliament for people that died in at least 20 people have been injured. One of the known attackers is also died. We will continue to bring you updates throughout the hour. Lets bring you to Abigail Doolittle who is on covering the markets russ. Abigail we are not seeing too much reaction in the u. S. To the london terror attack. Dow, s p 500 and nasdaq continuing to trade in next, unchanged faction. Mixed, unchanged fashion. Where we do have more of a reaction, it is worth noting the small moves are consolidation of the worst selloffs of the year, we do have more of reaction for the russell 2000. An intraday chart. At one point it was higher. Around 11 45 a. M. Eastern time the russell 2000 started to take a serious leg lower. Thats when the metropolitan police classify this as a terrorist incident. The London Attack a terrorist attack until proven otherwise. It did have a reaction. Down a 10 to 1 . Still down about half a percent after yesterdays drop of about 3 , the worst since september 9 of last year. We saw similar reaction to the vix in the fear gauge. We see it started to shoot higher water and 11 45 the terrorist incident classification came. Summary action. Some reaction. We continue to have a haven bid. The 10 year yield trading lower by three basis points. Shown in green. Bonds are rallying. We have the yen trading higher against the dollar, shown in red. The dollar is declining against the yen, the sixth they in a row. Gold higher for the fifth day in a row. Haven assets are rallying but this is not new. Overall, not a lot of reaction to the London Attack right now or the u. S. Financial markets. Scarlet thank you so much. Oliver lets turn to the environment. Looking at alternative investments, including hedge funds and private equity and how the two groups to the affected by the policies of the Trump Administration. Joining us is cain brennan at Goldman Sachs asset management. Thank you for joining. Lets talk about what you are doing as global head of portfolio solutions. What problems are you trying to start now . What our group does is we do outsourced chief investment officers. We help our clients with the full gamut of their problems. Their problems may be on strategic levels. How does a portfolio fit inside the whole corporate ecosystem or for the endowment or foundation, whatever their objectives maybe . We help clients figure out how to diversify. You touched on keystones and private equity. We help clients pick underlying managers that will implement the portfolio. We help our clients the tax allocation if there is changes in the marketplace like we are having today. We will help Risk Management portfolio. One thing you should know about us is its a customized business. The outsourced cio. They are trying to maximize returns on minimizing risk. But from there its very customizable. Scarlet lets talk about what kind of appetite you have seen from some of your smaller clients. Pension funds that are not in the tens of billions of dollars. How has it evolved since the election in the whole trade . E if you step back alternative Asset Classes still move as quickly of other Asset Classes. Im not sure there has been a huge change since the election. The alternative appetite waxes and wanes. If you think back to 2008 nobody wanted private equity. Generally, if you think about was going on, equities that he fully valued. Some say very highly valued. Rates, the 30 year trend of going down and therefore bond prices going up maybe ending. People generally are looking to diversify away from some of the big Asset Classes and alternatives is a great place to do that. All of our clients are asking about this. Oliver within the rome of diversification, for the past couple of years its been synonymous are looking for yields because its been hard to find in some of those typical Asset Classes. If they are not getting anything in bonds and getting bonds outside of the u. S. , they start to look at perhaps the pe type of stuff. Alternatives, hedge funds. How do you assess whether or not they are taking on risk levels that they are not used to . Kane good question. For most Pension Plans if you step back and say where do they miss their objectives to some the last 15 years many Pension Plans have thought solely about the asset side of the Balance Sheet and less comparatively about the liability side. Lastyou have seen over the 3, 4, 5 years is a huge move to lv i, liability german investment liability driven investment. My assets should be used to match liabilities. People are focused on Risk Management much more today than they have been for the prior decade. Oliver thats a big part of the business. We have seen it happening more and some of these endowment funds. We are looking at harvard. I want to know if youre going to expect to see more use of the outsourced cio as passive investing and Exchange Traded funds dominating more the market. Can you address that point specifically . It seems like there is yes use to have less use of 12 active managers sitting around the table. Kane if you look at what harvard did, and im not privy to anything other than what i read, they had three objectives. They wanted to focus on their core strength and having everything internal was a core strength. They wanted to outsource some pieces of it. He said some of the expenses were just too much for them to bear, to have it all internally. Thirdly, what he said was i want to break down the silos and have a way, rather than everyone being in next for in their individual classes, more expert in the overall portfolio. That third threat matches something thats exactly with cio. It helps organizations focus on the whole pool instead of small pieces. Some people are using passive, but the big picture how do you add value at a strategic level . That is consistent with what hard was doing and consistent with what our clients are doing. Scarlet for a Harvard Management company, the best utilize your services . Kane the o cio marketplace endowment foundation, others, tend out sort when they are somewhere between small numbers in comparatively, 10 million, up to 5 billion to 10 billion. I think harvard is somewhere around 36 billion. The way they have often used Asset Managers is part provider. An individual as place where we are others may be expert or more expert than they. And very interesting dynamic with some of the biggest pools of capital in the world with these people like ourselves. Is called ecio. That an external cio where they give is a vertical slice of their portfolio, multiasset class, they has this to be innovative and put in place are tactical views. And they decide, rather than outsource. Partner does not have one of these with us, but as an example. They look at what we are doing and they decide what they are going to apply to the rest of the portfolio. Oliver a portion of the picas to that. Kane, looking forward to having you talk more about this as it develops. Kane brennan at Goldman Sachs asset management. Stocks have soared since the president ial election but the fed is sticking with a 2 growth forecast for the u. S. Economy over the next years. We will have that story had. Scarlet we are covering breaking news out of london. There was a terror attack near parliament. We have more updates to come. It is londons biggest terrorist attack since a bombing of the transport network in 2005 and a symbolic site in the center of london. We will keep you posted. This is bloomberg. This is bloomberg markets. Scarlet we turn out to the fed which raised rates as much after stocks days the big rally. To what extent is the central bank swayed by the market euphoria, notwithstanding yesterdays dib . Mike dornan joins us now. Is the fed saying about growth and how does it differ from what they were forecasting the war President Trump took office. Corymike so far the are unimpressed. They are sticking with her prior forecast and expecting about 2 Economic Growth this year for the u. S. They notight, how can have the speculate or start to think about what the effects can be . For some reason every thing starts going through him get in the infrastructure land and all the sudden they are worried they are behind the curve. Mike its absolutely the case that there is a big infrastructure plan and a tax cut as President Trump wants. That would have a big effect because it risks super heating the economy. They are clearly skeptical all this is really going to happen. They want to wait to see some evidence is happening before they go ahead and raise Interest Rates. Obviously they have the option of raising them in the future and changing their course. For the time being they dont want to do it. Feds latestn the forecast with stimulative three Interest Rates increases for this year, three for next year, what is there most likely course of action further out . Mike at the moment the likely course of action is to continue this very slow incremental adjustment. To think about the Federal Reserve is they will be watching how things are unfolding. They will watch this see if trump does have some success on these stimulatory legislation. That they can adjust course if that happens. White House Team Leader from bloomberg, joining us from washington. More on the Monetary Policy at 3 00 p. M. Eastern time when alan weiner joins us. The former vice chair of the fed. We have more information coming up at a london. The terror attack in Parliament Today resulting in four debt and 20 injured. This is number. From bloomberg World Headquarters in midtown manhattan, this is bloomberg markets. I am scarlet fu. Commodity markets closing in new york. First come we want to take you to Mark Crumpton with first word news and update on the breaking news in london. As we have been reporting throughout the day, Londons Metropolitan Police say a full term or investigation is underway after attacks at Britains Parliament and wes mr. Bridge Westminster Bridge left for people that and 20 injured, some seriously. Looks like there was only one attacker. We shouldnt be overconfident so early on. As i said, cautionary basis, we are locking down the area and doing all necessary searches so we have complete confidence everyone is safe. Mark the man who allegedly stabbed the officer was shot. A vehicle plowed into people on londons Westminster Bridge overlooking the river thames. The house of commons was placed on lockdown as the situation unfolded. In the united states, the white house says President Trump has been briefed and federal officers are on alert. Stay with bloomberg for continuing coverage of this breaking news. In the u. S. , it is day three of confirmation youngs for supreme neil gorsuch. Ncker suc put on theen you row, you open your mind. Frustrated democrats suggested they may not vote to confirm him. Regardless, Senate Majority leader Mitch Mcconnell has made clear that he will see that gorsuch is confirmed one way or another. Turkeys agreement with the European Union to stem the largest flow of refugees since world war ii is inching closer to class, according to turkeys minister in charge of eu integration. The official says turkey has hosted about 3 million refugees, the most of any nation, but he described the deal is onesided and said turkey is under no obligation to continue implementing it. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Scarlet thank you so much, mark. We will check in with Francine Lacqua in london shortly. Lets get a look at the days biggest commodity movers get gold and its winning streak futures moving higher as equities retreat and concern deepens among investors that President Trump will not deliver on progress promises for the economy. Oil is slipping on a building crude inventory. Brent briefly dipping below 50 a barrel. T is now at 50. 65 rising stockpiles are getting optimism that opec and its partners volker output enough to rebalance the market. Oliver for more insight and analysis we are joined by an Energy Research analyst at city research. Lets talk about what is happening with opec and the idea that these guidelines for production might get pushed around a little bit. Should Oil Speculators be concerned that there will be more production than we expected a couple weeks ago . Well, certainly markets should be concerned about any sort of opec compliance issue. That said, that is what some the concerns have been about whether the saudis are producing more than they said they would, the rebuke of the russians for not complying. Certainly there is great interest of them. We are working on the basecase assumption that they do and their there may well be an extension going forward. Aret of the production cuts less on exuberance on one side but at the same time just before opecanuary 1 cuts, countries and the other petro state surged production and experts ahead of january 1 in order to beat the deadline. We are seeing the fruits of that now. Oliver i see a similar situation in oil when i look at the stock market. After the election it was a game of expectations. There will be policy put through by the Trump Administration and investors made bets on that. Oil since the similar situation when we Start Talking about production cuts. Is this the move we are seeing a little bit lower with oil, some sir air coming out or a structural situation they start not Investor Sentiment not Investor Sentiment but actual production . Eric i think it is the air coming out. If we look at the data released by the ctc, extremely high levels of money manager on the net long side for oil. What we have seen in the last week with the selloff, a lot of that flushed out. Back at more, one might say, reasonable levels. Eric, as we mentioned earlier, an increase in u. S. Stockpiles. We are entering spring and the weather will warm up. Talk about the demand situation and how that will leave all the next couple of death how that evolve the that will next couple weeks. Eric the crude situation has been a blow to the oil market. I think the important thing to note is on a week by week basis that is a bit of a headache head fake because last week there were foggy weather and a lot of imports that have shown up this week. The main thing to watch going forward, the season is refineries are finishing up the maintenance season and of gotten all the maintenance out of the way. Refinery crude demands increased somewhere on the order of one Million Barrels a day between now and early to mid april. Oliver i want to bring up a chart you will not be able to see but we go inside the bloomberg terminal and we walked through it. Expectations it comes from an analyst at bloomberg expectations for oil prices and the actual price of Energy Companies. What you are seeing is a divergence or analysts on the street are saying oil will move forward as a result and Energy Companies will move further. If you look at the correlation, this is exactly what happened in 2014 when there was a breakdown between what the street was saying and where oil prices are actually going. My question to you is when you look at your peers on wall street, what are people missing right now . Eric i am a quantities analysts i cannot comment on companies. Going forward, we are constructed for oil prices towards the second half of this year. We were cautious about the Third Quarter but we are really looking for the 60s in the Fourth Quarter of this year. May behat, that something that may not be baked in in every analyst. Scarlet eric lee, thank you so much for joining us. Lets return to the breaking news out of london. We got this london from the metropolitan Police Moments ago. Sadly, i can confirm that 4 people have died. That includes the Police Officer protecting parliament and one man we believe to be the attacker who was shot by an officer. Scarlet joining us from the scene in westminster is bloombergs Francine Lacqua. You have been there for a couple of hours now and the place is still in lockdown. Give us a sense of what kind of movement there has been an how much activity there is. Is this considered wrapped for now . Francine it does, scarlet, and it certainly feels different from an hour or two hours ago. Where im standing right now is this outside of Westminster Bridge. The National Head of briefed us andm he said that as far as we know there was a car that traveled through the bridge right behind me hitting pedestrians. He was trying to mow them down, and then he turned left to go to the houses of parliament. That is what you see behind me. Said, for as you people that come including the attacker. There was a little bit of speculation and mixed messages about whether there was one or two attackers. The head of counterterrorism made it clear that as far as we know, it was one attacker could we have not heard from the Prime Minister, but the situation seems to be under control. We dont think this is an ongoing situation. I will also update you on where we are, very close to st. Thomas hospital, one of the biggest hospitals in london. Many injured were taken there. There is still about 10 to 15 or even 20 casualties. Scarlet this was in westminster you the houses of parliament. Was this an ordinary day for theresa may and the members of parliament . Were they scheduled for something different, francine . Francine this happened to go and 20 p. M. Local time, foreign a half hours ago. Parliament was in session. Was runningnister as soon as this happen and we had a reporter in Westminster Hall who saw this happening. The Prime Minister was taken into a great car and whisked away. There was a covert meeting, where there is an emergency situation and the Prime Minister and her surrounding confidants, civil servants, in a boiler room, lockdown room to assess the situation. She has not emerged as far as we know. We need tothings keep in mind is that in a normal day like today, hundreds of thousands of tourists are around here. Westminster bridge on the right. You have the aquarium. It is one of the bestknown bridges that leads to the houses of parliament. It would be failed with with tourists. Ed we heard from the french Prime Minister that french schoolkids were involved in the incident. Scarlet this is being treated as a terrorist attack. In terms of timing, francine, it is one year after the belgian terror attacks went there were suicide bombings at the Brussels Airport metro station. Have there been linkages by police or anyone in the authorities to what is happening across europe . Francine not as far as i know. We know the investigation is unfolding and we know right from when this cost twitter by the metropolitan police, this was being seen as a full on terror attack. We are waiting for details and i would point out that today, the oneyear anniversary of commemorations for the people who died in the Brussels Airport attack. Theresa may is due to trigger article 50, we found out a couple days ago that it is next wednesday, the 29, that she will inform the commission that they want to get out of the union. Scarlet good perspective there could Francine Lacqua, thank you so much. Reporting live from westminster. Oliver lets get a check on where stocks are trading. The market managed to find its footing a bit as we move closer to the close. About five of 11 in the s p 500 down. Dow jones still in the red but the s p has flipped upward. Finding strength in about 10 points thanks to gains in tech stocks. This is bloomberg. Suggests there is not a fearful reaction to it as investors are consolidating yesterdays big selloff, the worst of the year. We are seeing a bit of a haven bid continuing we see the decline in verse to yield. Bonds are rallying. Interestingly we did not see your reaction to the terror attack in london for bonds. We saw the bond selloff a little bit. Overall, down on the day. Not surprisingly, that means financials are down once again. Earlier the banks have been higher but now were looking at the banks lower for a fourth day as well. Jpmorgan and keycorp are 2 of the biggest for the Financial Sector. Goldman sachs and wells fargo tracking. You mentioned technology and technology is the top sector, one of three trading higher competing helped by apple, microsoft, and facebook. Beautiful rally for technology. We are seeing a little bit of green for the s p 500 and the nasdaq. Scarlet thank you so much, advocate abigail. Breaking news, the president did speak with theresa may, Prime Minister of the u. K. We have a release he says come or his opposite he offered condolences on the terror attacks and gave praise for the Effective Response of Security Forces and First Responders and pledged full cooperation and support of the u. S. Government in responding and bringing those responsible to justice. 4 people died and at least 20 were injured in the attack in london. We will keep you posted on the developments. A the meantime, we have former white house counterterrorism official to give muchneeded perspective on this developing story. One thing i wanted to start with was the timing of this attack. It is exactly one year after the belgian terror attacks where there were suicide bombings and the Brussels Airport as well as the metro station. Do you read into that anything . Scarlet, in this business you never believe in coincidences. It is highly likely this individual sought to tie this attack to the oneyear anniversary. It is a profile of raising higher News Coverage to it, associating this attack with what isis did on the european continent a year ago, and it fits the broader pattern of how isis individuals radicalize, motivated, or enabled use the word of your choice trying to string together a tax as part of a broader picture that each country in europe is incredibly ulnerable from isis perspective. Scarlet so far we have not heard from officials about who is responsible for the attack. There have not been details on the attacker. Wide you think that is . Why do you think that is . Why hasnt anyone seemed to have claimed responsibility for . Thats part is interesting because typically we have seen isis and those affiliated with it rush to social media in the aftermath of an attack to claim that responsibility and to associate themselves. Although i did say isis, there is a remote possibility this individual had no affiliation and there may be other circumstances around why he did what he did, this act of murder. Aat we will find out and in couple of days as a Scotland Yard and the metropolitan Police Continue the investigation, they will be able to vacuum information on this individual and identify who he worked with, they will go through his computers that he has, cell phones, any type of material that can point to was he acting alone, was it a Broader Group of individuals he was associated with, and what does that mean for the potential future threats . , as thePresident Trump scarlet just read, did release a statement saying that the British Government will have the full cooperation of the united states. What does that look like . What does it support from the u. S. Look like in situations like this . Roger the u. S. British counterterrorism operation is incredible is solid, very high. Very few things we dont share between us from the Intelligence Community and Law Enforcement. Where there have been hiccups in the past, those have been smoothed over. In cases like this, the Intelligence Community will provide any information they might have that in hindsight could point to specific individuals. It is highly unlikely that will be the case. What we have seen so far in these types of attacks in europe , individuals who have done a hiding theob in planning and before they go operational, very Little Information that Law Enforcement or intelligence officials can point to and say you knew this individual was out to conduct this attack. We will provide anything the British Government needs, but in this type of scenario, political support, the type of support we give to our closest ally, i will be surprised if we have anything specific that will help in this particular investigation. , as the looking ahead members of parliament are still in lockdown right now, what do you anticipate the security to be like across london, not just west mr. , but other significant landmarks to be the next coming days and weeks . The u. K. Gets ready to trigger article 52 begin negotiations two begin brexit negotiations. Roger the individual who did this was looking for a high profile effect. He went to an iconic landmark, one that would generate a tremendous amount of media coverage, and sends a signal that the heart of london, the political process, a place where there is a tremendous amount of tourism and visitors is vulnerable. That objective is achieved whenever these types of attacks happen. What you will see London Police authorities do is expand the security perimeter around the number of highprofile profile landmarks and have a more visible deterrent. I think mark riley spoke in his press conference about reminding londoners not to be aligned by a r visible presence of armed police. We see that all the time in new york, for example, in the aftermath of attacks overseas. The visible deterrents presences i think you will see more of that. Will see if theres anything they come in from the to change their Security Posture as well. Thankt roger cressey, you for joining us by phone. Oliver coming up, tracking the trump trade. Yesterdays rout easing a little bit today. Check out what is happening in bonds. That is part of the story here, because we have been watching bond yields going down down down the past four days. Green in emerging markets and in asia. This is bloomberg. Oliver this is bloomberg markets. I am oliver renick. Scarlet i am scarlet fu. Stocks fluctuating after suffering the worst drop since october. Miss, good Joe Weisenthal has been following the action and we were talking about the 10year yield. Over a week and a half ago was 2. 6 and now it comes straight down below 2. 4 today. We dont know what the direction is. Oliver can i show you my favorite chart, joe . It is my favorite right now. Looking at the curve of the treasury that is white 5 to 30 in blue. Isnt that the story of the past week . Joe you have to wonder, if any part of the fed was inclined to tighten, exactly the opposite has happened since the fed decision. Not exactly a tightening in any meaningful sense. Scarlet really confirmation for people who are saying the bull market is intact because this is scenario. Dip joe level one is like, is this trump trade and you can feel people wanting it to change and here we are, selloff over. All right, joe, thanks so much. Scarlett will talk more with joe on went to miss whatd you miss. Coming up, alan blinder will join ahead of Janet Yellens speech tomorrow. Scarlet an attack in london has left 4 dead and 20 injured. Mps remain in lockdown in parliament could from new york, this is bloomberg. Oliver it is 3 00 p. M. In new york, 12 00 p. M. In san francisco, and 8 00 p. M. In london. Im oliver renick. Scarlet im scarlet fu. Welcome to bloomberg markets. Oliver we are live from bloomberg World Headquarters in new york for the next hour. We will cover stories in san francisco, washington, and london. Breaking news, a terror attack in london has resulted in quarter debt and 20 injured. We will watch with updates. On theeconomy, we focus Federal Reserves agenda and Janet Yellenspeech tomorrow. And we will talk policy. U. S. Stocks fluctuating after suffering the first 1 decline since october. Havens like treasuries are rising today. We will walk you through the club. Lets get an update with Abigail Doolittle. Abigail despite the attack in london and the fact that we had a massive selloff yesterday, we are looking at not a lot of action on the averages. The s pseen the dow, 500, and nasdaq flip between small gains and losses. The dow has been primarily lower, nasdaq primarily higher, the s p 500 truly right around even. We have stocks trying to approach separate highs earlier in the morning around the terror attack. Lets ring todays action into the contest of the egg selloff. This is a two day chart. Fears the healthcare bill may not be passed tomorrow and if not, that would put fiscal stimulus on hold and the whole reflation trade investors had been banking on could come to an end. We had investors consolidating that and waiting to see what is next. Waiting to see the bill voted on. Andre looking at nike shares are down 7 , at record lows. , down 1 , down 9 bearish action there. Down 14 , its worst day since november as the company filed its annual report, and also said they had substantial doubts about the future. That is something investors do not want to hear about. And across Asset Classes, we continue to see a haven bid here to basisr yield down points, gold trading higher and the yen trading higher. In a row, anddays there has been a bit of a haven bid even before the big selloff yesterday, which is why it is so important to look at all the Asset Classes when analyzing. Onrlet lets get you more the latest on the u. K. Terror attack or four people are dead including the suspect and policeman. Francine lacqua is live at the scene. A man was brandishing a knife, there was a shooting incident, and a deliberate car crash. Can you give us a sequence of events that occur today . Francine we are here on the south bank of Westminster Bridge. We understand this is where the car that you are talking about went to the bridge trying to mow down some pedestrians. He did so and then he turned left onto with westminster and the house of parliament. He continued mowing down certain pedestrians, and then the attacker we have been told by the head of the counterterrorism unit of the metropolitan police, one attacker where the attackers went out of the car and stabbed a policeman. We understand the policeman has died with two other victims, civilians, and the fourth person also died in this terror attack. The moment, we understand the situation seems under control. Armeda heavy presence of police. Security will be stepped up. Scarlet members of parliament are still in lockdown inside the building. To reason may was shuttled to a safe location. A meeting of the governments cobra committee, could you tell us about that . Francine we understand the meeting is due to start shortly. Last time, a few years ago, it is usually convened in case of emergency and the Prime Minister surround themselves several servants and trusted advisors. In terms of timing, this is wednesday,eek until the 29th of march, where to reason i said she would trigger article 50. We have not heard from the Prime Minister yet. The very important people, the members of parliament and the Prime Minister, will first be ushered or if you are a member of parliament, you are stuck at westminster to make sure your safety is of the uttermost importance. Scarlet Francine Lacqua reporting live, thank you. Stay safe. Global threate Management Company with operations in more than 40 Companies Including the u. K. , thank you, for joining us. Sparedhas been largely from the recent terror attacks across europe. We have seen paris, brussels, and berlin. The significance is in terms of the deterrence, by the fact that we have got a good history and a long letter long legacy of dealing with domestic extremism and international terrorism. The capability in terms of the ability to intercept for planning these kinds of attacks has been highly successful, as well as domestic Law Enforcement agencies as well. Oliver tell us about what has to go into prevention. There is news in the headlines about a car driving into a crowded area, and it brings back memories from less than a year ago in france, another incident. Say lets get ahead of this thing before it morphs into Something Else . Biggeste of the challenges is trying to preempt and speculate how that methodology will change and alter and adjust as preventative measures are put in place. Something we are seeing now is the action of hijacking vehicles, whether they be large passenger standard vehicles, driving them into crowded areas. Wake, varioushe installations, the same happens in westminster. Prevent a vehicle borne improvised explosive device or launched attack against the building itself or the personnel. That, we are in u. K. , specifically london, and are benefited by more per square foot than any other city in the world. Terms of detection of hostile reconnaissance attacks, it allows us to be to a degree ahead of the game. The challenges we face in that dynamic is the fact we are now dealing with more of a guerrilla style attack, the lone inertdual, using somewhat elements. They do not need special components or ingredients. Just a car and a knife. Scarlet this is an attack on a hard target, westminster, the bridge, approaching houses of parliament. On the seen attacks metro station. How significant is it the attacker was able to get to a hard target when security is already fairly intact . Will to try to restrict vehicles is going to cause massive congestion issues. Some plans are feasible and others are not. In terms of trying to protect against vehicles, perhaps gain momentum, it will be very difficult. You have got to come at it from an alternative perspective. Targetingct to westminster, i think this is quite symbolic and is also potentially directly paralleled to the Islamic State, that my positions are potentially the motivation behind this, whether it be a direct recruit or that it iss, diminishing the effectiveness of propaganda online, that they need to aim for significant targets, representative targets, paris and westminster, internationally recognized across the world. On that note, does it and bold and the executive branch where discussion and dialogue. Ill yes certainly, theresa may has cobra meeting, and generally a convergence of all agencies, with the government to assess and nowuate where we are right in terms of effectively disrupting terrorism. It will be potentially easier but for the small random guerrilla style attacks, it will be our challenge. , thank youll geddes very much. Up, alan is our guest here. Too cautious in its forecast . This is bloomberg. Scarlet this is bloomberg markets. Mark crumpton, beginning with an update on the attack in london. Mark the head of says fourrorism people have been killed in that terror incident, including an attacker and a Police Officer. Mark says some 20 people were wounded and parliament was locked down. The search is underway to mix a no other attackers are in the area. Police believe there was only one assailant. Satisfied at this stage. It looks like there was only one attacker. It is not good to be overconfident early on. Area soocking down the we can be completely confident that everyone is safe. Mark the white house says President Trump spoke on the phone to theresa may, offering condolences for the terror attack in london and pledging the full cooperation and support of the united states. The u. S. Secretary of state spokeson Rex Tillerson today in washington, where officials from 60 nations are gathered for a twoday summit to discuss new strategies for the war against the linux date. Police confirming four people dead, more than 20 wounded, including Police Officers. An man allegedly stabbed officer and was shot and killed, and the attack comes after the oneyear anniversary of the deadly suicide bombing attacks, left 30 people dead. Stick with bloomberg for continuing coverage. A vote from the house of representatives on the gop plan to repeal and replace obamacare. The white house remains cautiously optimistic that will will pass. Advisors are still trying to persuade at least 20 House Republicans who are either opposed to the plan or remain undecided. Global news 24 hour the day powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Scarlet we have got much more coming up. Still ahead, options insight p or before that, we will speak on what janetder yellen should be saying to the markets when she speaks tomorrow. From new york, this is bloomberg. Oliver this is bloomberg markets. Scarlet chair yellen taking the stage. As you go to the bloomberg and it highlights the fed speakers coming up. A long list of people who will bes begin p or question for investors is will janet yellen for theany job hints timeline . ,oining us now is alan blinder professor of economics and Public Affairs at princeton university. Thank you for joining us. Before we get to whether the fed chair will drop any hints about the timeline of rate hikes, i wonder, do you believe whether the fed was influenced by the soaring stock market in deciding to move on rates in march . Alan very little. I think what is profoundly influenced by the strength of the economy, both as it sits now and prospectively looking forward, the soaring stock market is a small piece, a piece of that story. The answer is yes. Even if the stock market is stagnant and certainly if it had gone up less but gone up, the fed would have done the same thing. Oliver i want to get your reaction because the case was made that we are ok with running inflation a little above the fed target, do you agree with his sentiment and do you think he has a point . Alan i do. Argument heat the posted online, i did look at it. Correctng is basically but the fed has been planning for some time for somewhat of an overshoot. You do not want to be a gigantic overshoot. Even with the latest hike and the next one, we still have negative funds rates in real rate, below the inflation basically what they were arguing we do have. We do and we will have that for several rate hikes to come. The fed that moves the hike but they remain pretty dovish, they do not signal anything more than three at the thatleast, you had told us given what we have seen now, is it a possibility . I think it is very much a possibility. Them of things could deter including a somewhat weaker the secondwe go into half of the year than we anticipate now. This is starting to look more realistic, frankly. The trump taxy in cut. Me at the first of the year, i would have thought we were starting to get proposals by now. We are obviously not. Those are a long way off. Thing is aners, one expansionary fiscal policy and a fully employed economy, will stop becoming a smaller worry. Scarlet speaking of an expansionary fiscal policy, have economists figure out what productivity and keeps it growing . Will it be Infrastructure Spending . Do we know . We pretty much know it is not a large tax cut and we have tried that many times. There has been no discernible effect on productivity. Even at the wildest outside, if you take the trillion over 10 years, that is 100 million year on an economy our side our size. It is not huge in general and the impact on productivity would be positive and worth having but not gigantic. The basic answer to your acceptn is we do not tautological he. We know it is technology but that means the technology feeds to gdp and frankly, i think it is not facebook, twitter, snapchat, and all that other stuff. We see an explosion of that kind of technology. How that feeds into industrial productivity very much. Scarlet janet yellen will be speaking tomorrow. What should she say to investors to really dont know what make of the last fed meeting, where she was more dovish than anticipated . Alan i think much more is a little bit beyond what you would say. I would say eight had more. More a tad more. I think she is happy as a clam with the way the last rate hike took over. The understanding in the market to come, is likely do not think she is in a position even if she wanted to make signals about timing of future rate cuts. She has got the market thinking there are probably two more coming during the year. Maybe three and maybe only one. Two more seems to be a good guess. Belief, as it is now. That means give a boring speech. Scarlet all right. Joining us from washington. Time now for options insight with Abigail Doolittle. Abigail thanks. Joining me is scott bauer, Senior Market strategist at chiding advantage or he joins me from the cboe in chicago. Thank you for taking the time. Yesterday, after all the complacency and the lack of volatility, a 1 decline. More selling to go. Scott i think people are very cautiously eyeing this and waiting to see what happens out of washington with the Health Care Issue now. ,f any sort of past performance looking at the last 36 months, tells us something, we should probably buy some of this. Certainly, there will be more external items that could derail pastarketplace here, but performances is any indicator, you should probably dip your toes back in the water. Abigail the Financial Sector is different. Down for days in a row, they led the decline yesterday. They look a little bit phone or ball. What are your thoughts . Are you worried they would continue to selloff . Scott yes. If you see financials drop 35 , that could lead to the rest of the marketplace lower here. Every time we have seen the selloff, greater than what we to dipen, it is time back in. People still on the sidelines, go ahead and wait. Abigail if we could get to your trade super quickly, you have a bullish trade. Could you take us through it in 20 seconds . Scott absolutely. V, twod to move xl dollars go out to april we have seen a bottom based on what is coming out of washington. 7576 present call spread. Percent call spread. Ove where xl the bottomed xlv bottomed out here. Abigail great. Thank you for joining us. Back to you, scarlet. Willet still ahead, we continue to cover the terror attack out of london. Four people died and 20 were injured. We will give you the latest. This is bloomberg. Show me academy of Country Music awards. Thank you so much for that down home welcome. Show me female vocalist of the year. Thank you so much. Thank you so much acms, i appreciate it. Show me acm best moments. I could never have wished for, asked for and dreamt of anything more than this. Catch your favorite moments from the acm awards and an exclusive encore performance by Kelsea Ballerini following the show on xfinity x1. The acm awards. Live on sunday, april 2nd 8 7 central on cbs. Mark as we have been reporting on bloomberg television, one Londons Metropolitan Police say a full terrorist investigation is underway. After an attack. Four people have died a Police Officer was protecting parliament and one man was shot by mark on lockdown as the situation unfolded. President trump has been braved and federal officers are on alert. Stay with bloomberg for age of the cover developing story. Rex tillerson says defeating the Islamic State is americas top goal in the middle east. A gathering of a 68 Nation Coalition to defeat the Islamic State. During the campaign, donald trump said he had a secret plan to defeat isis and later said he would give the military 30 days