Production cuts that continue to hold. Mark lets have a look at where european equities are trading with just 30 minutes until the end of the session close. Iceland is up and greece is up. Portugal is up along with portugal is up. Much of the major markets are lower. Frank, sterling, euro are all up today against the dollar which is about to give up all of it gains posed trump election. Declined ong yields the tenyear path of the curve in the core european bond market. Commodities are lower today. You some shows here. Biggest insurer is lower today. It could lead to a Capital Increase of of about 8 billion euros. Of the bankecutive says there is no plans to raise capital, but they will ask shareholders to raise the limit on new shares to 45 million from the current 10 million. The company says it is seeking flexibility, and that it has no specific projects or investments in mind. The new limit would represent some potential. Sterling is interesting. Article 50 is triggered on wednesday. Money managers are skeptical of the currencys recent gain. Some positive data could be sustained during a potentially difficult split with the eu. Blue Asset Management is targeting the pound to move towards parity with the euro at your. Next year. The uncertainty is leading goldman to target the euro gaining . 90 against the sterling. The sterling is expected to drop from 1. 25 today. That is according to analysts today from bloomberg. A great chart here. Even with the soaring cost and record low levels from last year, the nations real yield, which is the green line, is at its most level since 2012. Potentially reducing the yield for investors. The latest move lower in the after the angle of inflation rate has accelerated for the First Time Since 2013. Real yield versus the 10 year yield. 90 minutes into the trading day in the u. S. Julie, hows it looking over there . Julie investors are continuing to assess the chances of tax reform this year after the failure of the new Health Care Bill on friday. Sachs in the Strategy Team weighing in saying that we could see a boost to the s p 500 earnings may Corporate Tax cut orayed into late this year early next year as investors recalibrate their expectations. Regulatory reform in the financial is not required legislative approval necessarily. So, that has a higher chance of happening. All of these concerns and elements that investors are weighing are now weighing on stocks. Financials are the biggest drag on the averages. The trading firms are taking the worst of it. Goldman sachs, morgan stanley, which we told you earlier was downgraded a compass point. Open sachs is a long, because it is so heavily weighed in the dow. It is accounting for 38 points in that indexs decline alone. The hospitals seeing some relief year now that the Health Care Bill did not pass. Community Health Systems are higher in particular. A Psychiatric Hospital country were Hospital Company was also raised. Health care doing better overall today. Looking at what is going on with the treasuries, the dollar is selling off at it lowest moving average as there is disappointment being expressed over and perhaps pessimism over the legislative agenda. We have some buying in the treasury market sending yields lower. Mark Oil Producers over the weekend voicing that they are considering extending their production limits. Why russia wants more information by a green before agreeing to extend into the second half of the year. Inhave more on that meeting kuwait city. In order to make any decisions like this, we would need recommendations. We have asked the opec secretary to prepare more materials on the current state of the market. We want these details to them because indicated to jnc members. Byk we are joined now yousef from kuwait city. We have to wait another month before a decision . That is what it looks like they need a little more time for the data to reflect the work they have done. It is important to highlight 40 eight hours of deliberations in kuwait city, you have seen opec and on opec. Ompanies come together they have handed out report cards to member states, and ultimately they are confirming that they stand by those quotas and cuts. That will continue to push for 100 compliance. You are looking at 106 for opec and about 54 compliance from the nonopec clients. That is going to come up as of february and later on. They say there are some structural reasons specifically regarding russia as to why this cannot happen overnight. Ultimately, what they have done here is laid the groundwork for the path ahead in the terms of a possible extension. Conversations here and there with a lot of the ministers and opec members. They are quite keen to make back extension happen anywhere between four to six months. The russians are saying they want to wait for the data before making a decision. Mark are further cuts necessary . Goldman sachs says all it will do is push prices higher. Pull other producers back into the equation. Their magic number is 65 for pushing all of those big producers back into the equation. Ike the water, offshore is there a risk that could happen . Absolutely. Goldman sachs is speaking of unintended consequences when it comes to that extension. Both on the opec and on opec side. What is going to be interesting is how the numbers reflect those efforts. They are not immune to the realities of what is happening in the global oil market. They pointed out in their press release as well. And spoke about maintenance not opec supply clouding the work they are doing. Ultimately, it sets the stage or perhaps all options coming to the table to be able to react to additional supply. Ultimately, they have to take action if their efforts are not working out. If the extension happens this is interesting mark, you are looking at a second half price north of 60. The question will be as to how much of an impact that will have Going Forward. Mark yousef, great job. Thank you for joining us. Yousef in kuwait city. Vonnie while opec is considering cuts, producers are expecting production to rise. Let your more from alyx steel. You are dealing with the Shell Production in the u. S. Joining us now is the ceo of new field energy. Lee, good to see you. You just raised your fourthquarter production guides according to an oil yield at one of your wells was much better than you anticipated. What happens at 47 a barrel . We are down by 1. 5 today. At 47 a barrel, we continue to execute our plan. We expect volatility to continue in the oil market as supply and demand meet equilibrium. As we came out with a plan, there were people who were disappointed. I think the oil market today gives you some idea of what we had in our mind back in february. You are cautious in november and in february. What is the price point we have to rethink your plan . Way we have toe think about our plan today is that we have toptier assets. You can see what the results are doing where we raise our guidance for the first quarter. We have to balance our activity for cash flow and operations to ultimately be in balance. , in a 50tated that world, we can generate doubledigit growth and ultimately live inside a cash flow. That is our objective. That is what you do. This 45 you nervous . 45, if we were to settle at 45, we might slow up a little bit, but right now im not feeling any stress regarding to current prices. That is one side. The other side would you ran up more at 50 . What number makes you less cautious . Kyle you generate higher oil prices, we will generate rigs to accelerate. 55 or 60 . The community is trying to understand how flexible you guys are in shale. Lee flex ability means you step on the accelerator or break as appropriate. ,or us, what we want to do is as oil prices rise, we will add activity and keep our operations in balance. 60 . Lee you would have more activity at 60 then 55. You wanted to sell some of your pocket assets. Bachan assets. Would you expect to see that . Lee all things being equal, we do not have a need to sell any assets at this point. We entered the year with over 550 million cash on the balance sheet. At this point, we are generating business in all of our operating areas. We are considering to run a well in the basin that is generating some results. Compare that to your other answer. If you see oil settling below 45, is that where you need to sell the pocket bachan . Lee no, we do not see a need to sell today. Costs have really lowered over the last couple of years. When you start to price when do you start to price in higher cost . Lee we assume that if prices are rising, you will have an increase in service costs. Prices fall, you have a decrease on the service costs. I think a lot of the conversation we were having with people were talking about the five dollar oil if we were to receive that price environment, we would see the costs,. Ith oil trading below 50, think the pressure today is going to be pushing in the other direction. If it is 60, how much cost pressure do you see . And retain. Own there are process oriented efficiencies. The other half you would get back in a rising market. Much is that other cost going to rise . Lee you heard people talking mostt 55 or 60 costs people were thinking you would see 10 or 15 increase in costs them we saw in 2016. The whole curve right now is below 50. Right now that a month ago, that was54 a month ago that 54. What is your hedging strategy . Lee were putting 85 of our capital in cash on the balance. We do not think about hedging the same way we did previously. So, we do have some hedges in place for 2017. We are pretty open for 2018 forward. That just tells you we are constructive on the oil market on that timeline and horizon. Assets generate strong returns of about 45 to 50. The need for hedging to cap cash flows is not what it used to be. We are in a much better place today. Forow much would you hedge 2017 . Lee about 37 . We have not seen a price outcome this year that would merit additional hedges. Abouthad rbn energy talk stacks. See a massiveto dislocation in price if you cannot get the oil out of the area. Do you agree with that sort of scenario when you are working in oklahoma right now . Lee what we have said is that we have operated in oklahoma for over 15 years now. We know the markets there well. We have security capacity we need for oil and natural gas to execute our plan. Clearly, as production grows in every area, you will have bottlenecks. Friendly, we believe that under those circumstances, and the structure will be added to expand. We have what we need in place to move our oil. I spoke with you previously about in oil facility being installed that allows us to move 50,000 barrels a day of oil over to the hub in oklahoma. That has helped us drop our operating costs and insured our ability to move the product. What about 2019 or 2020 . The nextre good for three years right now with the agreements we have in place. Great. Lee, thank you for joining us. We will be talking with many more shale players in the u. S. Over the next few days. Wasbloombergs bloombergsbered alix steel. Upk we have more coming about article 50s execution on wednesday. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york. I am vonnie quinn. Mark and i am mark barton. We are two days away from Prime Minister theresa mays official start of the separation process between the u. K. And you and e. U. A testopean bank has set to see what could possibly happen. Brexit justifies an independent referendum. Bloomberg now is brexit editor simon kennedy. Did it fall on deaf ears . Big message from theresa may today was that it is an Unstoppable Force when it is together wales, scotland, england, and ireland are altogether. No one can beat us, apparently, according to theresa may. It lays the groundwork for not to much a concession but a better attempt to commit north and south of the border as Nicola Sturgeon have to take advantage of what he sees as a vote. We are going to talk about it a lot in the next two years. Let us launch it be quick will let us launch it officially on the european close. What is this index and why do we care . Daily updated a chart that takes into account serious Economic Indicators that will hopefully reflect the health of the economy in realtime as the brexit talks go on. It looks at unemployment, inflation, uncertainty. Now in the middle. Mark the closer to zero the worst . Simon the hiring goes, the stronger the economy. We were in minus territory after the referendum. The talks indicate from other data the talks indicate what we know from other data which is they are pretty solid going into negotiations which is a good thing for theresa may. Vonnie we will keep an eye on that barometer day today. When then idea of Prime Minister will come to the u. S. , but she does not really have anyone to speak with at her level yet. Simonl simon something we will question tomorrow. There has been a question of readiness for brexit. It is not as big as it once was. It has been shrinking. Exit has been put as the number one issue for the civil service. You have the creation of a Brexit Department which is siphoning off talent from the government in other departments. They are looking at all the things they need to do as far as designing a new trade newtionship right up to a immigration and customs system. Mark brexit is number one on the bank of englands riskless is it . List, notch . Brexit gone down a imon i think it reflects the bank of englands feelings that after the referendum they were worried, but now the economy has been more resilient. They have had some critics way that in their face. Think that perhaps they should dial it back a bit when they look at exit in the short term. I still think the banks are worried about the longterm risks. Bloombergn kennedy, brexit editor. Thank you. Vonnie two days left. We see that merger between dow and dupont, will it be the harbinger of more deals to come . This is bloomberg. Ornie live from Bloomberg BloombergWorld Headquarters in new york, i am vonnie quinn. Mark and i am mark barton. The European Union has approved the merger between dow chemical and dupont. The two companies overcame regulator concern with hefty concessions. Two point has agreed to get rid of part of the pesticide business. There are two other mega deals pending that would reshape the global agrochemical business industry. China National Chemical plans to buy syngenta. Lets take a look at where european equities are trading as we head to the close. Stocks are lower, down for a fifth day. The big question is after President Trumps failure to push through health care reform, will it be in impact on his progrowth policies Going Forward . That is the question everyone is mulling over today. I leave you with a look at the board as we close. This is bloomberg. Careful joe, theyve got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Something for everyone is awesome. Find your awesome with the Xfinity Stream app. More to stream to every screen. 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. Right, hang on. There we go. Now, live from london and new york, this is the european close. Im mark barton. Stocks finishing up the day in european trading, we will get the chart that i want. There you go, third time lucky. T. R. R. Is the function. Group ranked return is its name. Were down for the fifth day in six. Its all about donald trump. Its all about the ability of him to push through his progrowth agenda in the wake of fridays failure to get his healthcare reform through the house. That was pulled, as we know. What next . Tax cuts . Infrastructure spending, investors postulating today. Now, utilities up, defenses, most of the others declining, fifth day of declines in six. We were down a little earlier, which was the biggest drop since january. This shows you what happened today, flight to safety, flight to government bonds. Italy, spain, u. K. , germany, and france, the five and 10year yield, you can see there, almost all finishing the day lower on a yield basis. This is a lovely chart, showing you the differential performance of gold and copper. Gold, white line. Copper, blue line. As you can see, they are converging. Gold heading for its highest close since november. Metals sinking after the news weve already talked about. Gold rebounding 12 since falling to an 11month low in december. Copper falling to the lowest level. It dropped 6 since reaching an almost twoyear new february. Investors unwinding those trades, initiated in november, resting on the idea of the election of donald trump and a republican crornings meaning smooth passage of this agenda featuring tax cuts and regulatory changes, which would benefit industrial commodities and gold. The opposite is taking place today. And palladium, not something we talk about every day, the rally that pushed palladium to a twoyear high may be getting started. Yes, based on one technical indicator, the moving average convergence and divergence indicator, thats a gauge of momentum. Its back above the socalled signal line, thats the bottom chart right there since march 20. Pacing a bullish outlook thats helping drive palladium higher. The metal gaining on tight supplies, resilient demand from automakers in the u. S. And not every day, vonnie, we talk about palladium. Vonnie it is a treat, do have to say. Well, some of the rally youre talking about in the Asset Classes potentially funded in yen, because were seeing demand for yen, and consequently dollaryen is strengthening. We spoke about volatility today. I want to point out that were well below 14 again, so lets talk about volatility in a very practical way. The yield on the 10year, 2. 38 . Treasury buying, thats slight, or whatever you want to call it, continuing. I wanted to point out the mexican peso, its strengthening again. Talk will turn back to trade, and it will be interesting to see how the mexican pesoee involves. You can see all the major indices here in the rust lower. The british pound, as you mentioned, mark, and crude oil at 47. 79, bit of a movement, where were not seeing the statement movement. Lets go to abigail, a doer look at whats driving some of the stock market movers. Today one of the big stories is whether or not the reflation trade, the big trump trade out of the election, is reversing after the republicans did fail to put through that healthcare bill. Will donald trump be able to put through some of the other progrowth policies . Lots going on here. But this is out of the election until january 3, risk on, stocks, oil, and the dollar all higher, as bonds sold off. Then on january 3, the bloorg dollar index started to sell off. Then this reflation trade has slowly been reversing over the last two months. On march 1, bonds most recently have started to rally, so this chart suggests the reflation trade is already reversing. The question, is how much further does it go . The bloorgdelarg index, this is a great chart. It comes to us from g. T. Indicators, its a longterm chart, weekly chart of the bloorg dollar index, and the point here is that when theyve gone above 14, thats a momentum indicator. The bloorg dollar index has tended to drop in a big way. Well, it was recently above 14, suggesting that there could be a big drop. He thinks that the bloorg index dollar, the dollar could drop another 3 to 6 from here. It could continue. As for stocks, perhaps asset class most watched. Mark, its very interesting. This chart is of the transport, the dow transports in orange. The dow is transports well below the 50day moving average. The last time this happened was the brexit. It suggests that we could see the transports down already 8 from the peak, sliced right down to the 200day moving average. The s p is lagging, and it may suggest there could be more of a pumback ahead for the s p 500 as this whole reflation trade comes under pressure, mark. Mark abigail, fantastic chart. Lets goat Central Banks n. Frankfurt, the europes banking regulator held its annual press conference today. Is the Banking Industry awaits the completion of negotiations. The e. C. B. Supervision chief struck an opt my particular tone, saying the finalization of basel is close to an agreement. She also discussed regulation after brexit and bailout of italian banks. She spoke exclusively with bloorgs matt miller. Well, for example, the key actor in the negotiations has announced that he would retired n april. I guess we can work closer to get things done. We have very, very close, in my view. I am very optimistic, because we are quite close to get an agreement. Matt so once you get a u. S. Representative with whom to negotiate, you think you can get it done in one session . Thats my assessment, yes. I hope i am not too optimistic n. Any case, with such an agreement, we are moving rward, and we will make adequate level. Matt lets talk for a moment about italian banks in general. It seems like theyve gone with the taxpayer bailout solution, or theyre going to go with that. For banks that are insolvent, how do you see the situation unfolding . We would not be talking about, the question is those bank have to be solvent, to be ble to get this. Well, the difficulty is that in ertain countries, you have direct papers. So bonds, the contingent, this is not exactly in line with the bailing requirements. Most of the country is individual, so it will be this kind in insurance policies. So a lot of diversification is provided. The people i think these financial assets, they may lose part of the return or a small part of the capital, small part. Nonetheless, we see that most of the people holding, for example, bonds are wealthier investors, it looks like you have all of the tax payers in italy coming in to bail out the rich italian that is hold the paper. Well, its a bit more complicated than that, and i dont want to compensate on the senior banks, so let me say that we have a situation in taly where people, individuals are putting the savings of the whole life next door. If they are fortunate, this bank is strong. Thats the situation. What would you consider the bestcase scenario for the outcome of the negotiations . Well, its not up to me to say. I hope that the project will t be damaged through the negotiations. Its already very sad news that the u. K. Is leaving. It is being said, london, were still be an important partner. Well always be an important partner. We have a number of banks that are good in london. We may receive more londonbased banks for this issue. So we have excellent relationship, where we go into excellent relationship. Matt i suppose the most important thing for you now is to harmonize the rules in europe more than they are already. Are you concerned that some countries are going to offer sweeter deals than others in order to get business from london . Well, it could being the case, obviously, if we depart from the banking supervision, because banking supervision is in the ends of the defense, so it provides the neutrality, visavis countries and cities. What would be at issue would be if certain banks are establishing for branches, branches of third countries, national, our supervisor at the national level. Also there is an issue regarding the dinner in the u. K. Right now. It can use its judgment to decide that the system are supervised just like banks. And we need to ask the same possibility, otherwise it cannot be the case and there will be also supervisor at national level. So i think we should use the project, which is on the table right now from the commission, to companies, at the level to ake sure that there is no more assignment. Mark that was an exclusive interview. Just getting interesting headlines from the e. U. Its said to grapple with its trabs i guess approach in its brexit result, in its brexit response. The e. U. Guidelines set to focus on handling its brexit divorce. Theresa may triggers article 50 on wednesday, she sends a throrte e. U. President. What weve been discussing today on bloomberg, and if you read simon kennedys brexit bulletin, youll see that theres been great discussion on how she will word the triggering of article 50. It seems as if the e. U. Is deciding how it will word its response, and as i said, its set to grapple with its transition approach in its response, set to focus on handling its brexit divorce. We know that they will respond to may by dispatching this draft of europes guideline around capital. Were going to have lots more of this in the next 48 hours or so. Lets check in on bloomberg first word news, courtney has the latest. Courtney in the u. S. , President Trump will reverse much of former president obamas efforts to address climate change. Tomorrow hell sign a sweeping executive order aimed at promoting domestic oil, coal, and natural gas, according to details shared with bloomberg news. Some of the changes would take place immediately. Others would take years to complete. In europe, the russian Opposition Leader has been jailed for 15 days after the largest antigovernment demonstration in at least five years. Alexei was convicted of organizing an unsanctioned protest, according to an independent radio station. Demonstrators rallied in more than 80 locations against official corruption. A valuable coin has been stolen from a museum in berlin, and the thief didnt just put it in his pocket and walk away. Its called the big maple leaf and it weighs more than hundred pounds. The coins market value is estimated at more than 4 million no. Word on how the burglars kept from setting off museums alarms. Global news powered by 24 hours a day in 120 countries. This is bloomberg. Vonnie . Vonnie courtney, thank you. Coming up, after the healthcare bill went nowhere, will President Trump change course to get tax reform done . Well discuss our thoughts, next. This is bloomberg. Mark live from london and new york, im mark barton. Vonnie and im vonnie quinn. The latest fallout from the republican failure to replace and replace obamacare, up next, according to President Trump, tax reform. And Speaker Paul Ryan says the failure will not impact the republicans next battle. Yes, this does make tax reform more difficult, but it does not in any way make it impossible. We will proceed with tax reform. We will continue with tax reform. Vonnie joining us now is our reporter from capitol hill who covers taxes and policy and everything thats going on on the capitol right now. As much as healthcare was a bill failure, left, right, and for the whole administration, tax reform might be a different matter. There is potential for a middle ground here, after all, all republicans, no matter what strand of republicanism they adhere to, enjoy tax cuts. Vonnie, youre absolutely right. Tax cuts have been the organizing principle of the Republican Party for decades now. But remember, there are a lot of similarities, too, with healthcare. Firstly, republicans also agreed to a person on the concept of repealing and replacing obamacare. Its much more difficult once you get down to the details and make painful compromises in which there are winners and losers. Another similarity is that theyre trying to pass it through the same budget reconciliation process, which avoids a 60 threshold in the senate. That means they need something close to unity in both the house and senate. In the house, they can lose about 20 votes. In the senate, they can only lose two. This is going to be a very complicated task. The last time something this big was done, a comprehensive tax reform bill, was 1986. Vonnie more than 30 years ago. So the House Freedom caucus, what tone will they strike this time around . Last time, on healthcare, they were absolutely stow and i can werent budging, and they were presenting the president with really a no deal. Present the president with this time . Theyre continue to continue to drive a hard bargain. If the president is not going to change their attitude from the era of president obama when they economy demanded that legislation not annal be moved to the right, but refused to support anything, and the promises that they made to voters. We can expect the same on tax reform. How thats going to translate into policy remains to be seen. Theyve not put specific policy demands into the ground, but i suspect well hear a lot from them. Its important to know that paul ryan is dealing with another issue, which is that hes got his moderate flank, dozens of moderates are now also flexing their muscle and saying were not going to vote for these bills. That was a lesson on healthcare, and i suspect well be hearing from them as well on tax reform. Its going to be a very difficult balancing act for the speaker here. Vonnie the speaker really sort of drove a lot of the healthcare cabet in a lot of Ways Healthcare debate in a lot of ways and may drive this debate. What does the president s base want out of tax reform . The president has said he wants out of tax reform a few things. One is a big tax cut for the middle class, although his plan would also cut taxes pretty significantly for upper income folks, according to independent analysis. He also says he wants incentives for products made in the United States. In other words, to level the playing field. He says his belief is that the United States is getting killed by other countries because of zpacks trade policy, because United States policy, in his view, encourages imports and encourages products being made overseas. So he wants to fix that. Again, how thats going translate into policy remains to be seen a. Lot has to be flushed out. A month and a half ago, the president said hell send a blueprint up to capitol hill. We have not seen that yet a. Lot of unanswered questions. We know theres going to be a push here, the president and the speaker after the failure of healthcare on friday said theyre going to move to tax reform next. Vonnie our thanks. Mark a bigtime investment is coming to the u. K. From qatar, the gulf state planning to invest 5 billion in the u. K. Over the incomes three years. The deal was announced this morning in london. Speaking to Bloomberg Television at the event, the finance minister said qatar would also push for postbrexit Free Trade Agreement with the u. K. In conjunction with other gulf states. We work among the community, and i think if anything is on the f. T. A. , its going to be among the u. K. From our side, we will encourage such discussion. Mark they also plan additional investment in the u. S. They say the Sovereign Wealth Fund is pleased with its return, but will be paying close attention to the trump administrations economic policy. Its actually weve done, performing very well. The u. S. Market has done very well, especially postelection. I think that the way we look at that time is definitely more about economic policies. Mark qatar is also planning to open an office in San Francisco within the next year, as they plan to transform itself into a more knowledgebased economy. Were down to the final eighth of the battle of the chart tournament of champions. Yes, the quarterfinals facing off today, the fed versus the dollar. This is bloomberg. Mark in honor of march madness, were back for another suddendeath round. Were down to the final eight, vonnie. Vonnie its get sog exciting, mark. Its very hard to do it. All right, well, christina and kevin are battling it out. Kristine, youre in london, lets start with you. Today its dollar meet gravity. Im looking at the bloomberg dollar spot index, which is bloombergs exclusive measure of the dollar. As you can see today, the yellow line, thats pulling back today because of the defeat of the healthcare bill in the u. S. And friday. That puts to question the rest of Donald Trumps legislative agenda. Were also seeing the blue line here pulling back today, because investors are wondering what is the Federal Reserve going to do if donald trump doesnt implement all of his reforms . Take a look at the bottom panel, the correlation between these two things, and we can see thats the record level today thats never been weve never seen this before in the 14year history of the bloomberg dollar spot index, and what is the takeway for that, for the u. S. Dollar, that means that in addition to bearing the brunt of decreasing confidence in trumps policies, the dollar is also now increasingly susceptible to a pullback in fed rate hike expectations. Heck out this chart. Vonnie fantastic. Kevin kill, off to you. Kevin that one is tough to beat, but here goes nothing. U. S. Equities, we saw a pullback last week, and in fact, this mo, the s p is on track for its worst march since 2001, so an Important Note to keep note of. What im looking at is its time to head for the hills. This chart is saying it might not be. In white, im looking at the forward earnings yield, essentially the inverse of the ford p e ratio. And then in blue, ive got the 10year yield. So what we see is that equities fell off a pretty significant, but what investors also track is the spread between the two of these. And what were seeing is that its at its narrowest point to 2009. We all know what happened in 2009. The takeway is, if earnings dont live up to expectations, which are pretty lofty, this could potentially put pressure on u. S. Equities with a shift into bonds. You can find that chart at btv7170. Vonnie kevin, im going to give it to you, simplely because i was wondering earlier about the correlation between stocks ask bonds. That presents a pretty dire warning and maybe might come true. Mark, what are you going to do . Mark im going for kristine, which means it goes to the gallery. Kristine is the winner. Well done. Thats it from us. Bloomberg markets continues. The biggest week in tv is back. Wow, watchathon has netflix . Hey, drop a beat. [ beatboxing throughout ] show me orange is the new black. Wait, no bloodline. How about bojack . Luke cage. Oh, dj tanner. Maybe show me lilyhammer. Mmm, show me last chance u. On second thought, maybe pompidou. Narcos, fearless, cooked, the crown. Marco polo, lost found. Grace and frankie, hemlock grove. Season one of. Show me house of cards. Xfinity watchathon week starts april 3. Get unlimited access to all of netflix and more, free with xfinity on demand. Livestreat the airport. E sport binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream app. Xfinity. The future of awesome. Vonnie im vonnie quinn, welcome to bloomberg markets. Vonnie were going to take you from washington to boston, and San Francisco this hour. Here are the top stories on the bloomberg and around the world we are following. In markets, u. S. Stocks are taking a tumble as the trump trade shows cracks. Banks are bearing the brunt of declines, while the dollar is on the verge of erasing its rally, the rally since the election. Treasuries are rallying too as doubts grow over President Trumps ability to economic his economic agenda. In politics, following the healthcare bills failure last week, trump and Top Republicans say theyre moving on to tackle tax reform. Are it help this ambitious goal or hinder it . And one of manhattans most storied real estate developers, well hear more from his exclusive enter rue with Erik Schatzker where he discusses his outlook for the Luxury Real Estate market in the u. S. And also