Crimes that he says japanese prosecutors, government officials conspired to bring him down. The president of the European Commission is warning britain that it will not get the highest quality access to the european brexit,markets after and less make major concessions. En says negotiating a new e. U. U. K. Trade deal will be tough. She also says that what Boris Johnson has imposed makes it basically impossible to strike a new agreement. The cancer death rate in the u. S. Has fallen by the most on record. Advances in treatments prolonged patient lives. The desk death rates of cancer declined 2. 2 . Global news, 24 hours a day on air and quictake at bloomberg powered by more than 2,700 journalists and analysts in over 120 countries. This is bloomberg. Live from bloomberg World Headquarters in new york, i am vonnie quinn. Live in toronto, i am Amanda Langford we are now joined both by our bloomberg and bnm bloomberg audiences. Here are the top stories. A sigh of relief on the comments and President Trump suggesting further military force is not needed. Facing steeper declines after the Iranian Plane Crash that killed 170 six people raising new questions for boeing. Canada says it will assist in the investigation. Trouble and asset management. Dismissing between 5 and 10 of Global Workforce after assets declined last year. We bring the latest. It has been quite the ride for the major averages over the last day, and futures overnight took a huge tumble and obviously, boeing also suffered. We have had a reversal of all of those movements in the last couple of hours since the president spoke. Belowoil in the u. S. Is 60 a barrel right now. Move from its high point to its low point in the last 12 hours. The 10year yield back to 186 after being as low as 170 overnight. The s p 500 right now, a nice rally. ,lso looking at our wcrs because we have a bastion of middle east turmoil currencies. If you see the yeartodate which is only the last few days, gold is the highest form followed by silver, and even the euro and japanese yen, they have not been performing as well as the dollar and the environment. Amanda just a little more perspective on gold, when you price it in the euro, we are now seeing gold hitting 40 year highs, and this is also true of gold in the yen. Interesting measure of Risk Appetite and possibly also the reintroduction of concerned about inflation and a modest way for the United States. You can see historically speaking, all the record highs here, 40 years high for goals where the Risk Appetite is. Vonnie lets stay with our top story. President trump saying no americans were harmed by any Iranian Missile attack on u. S. Bases. He also announced a new sanctions on tehran. Statesrump the united will immediately impose additional punishing economic sanctions on the iranian regime. These powerful sanctions will remain until iran changes its behavior. Vonnie joining us now with more analysis is a Senior Research beenw, and it has not even 24 hours. What a night, everything was pot civil everything was possible and today, that has ratcheted down, so much so that markets are rallying and in release mode. Do we stay this way . Colin i hope so. Both sides are looking to deescalate. After the death of soul amani, mani, theans solei iranians are not done retaliating. The United States is going to have to gauge what the proper response will be to those. Wenda one of the things watch and events like this is Market Reaction and markets pricing an almost perfectly through the real risks. In this case, muted across the board even for oil. It is returning any gains briefly. Is the real risk in confidence, that there are some any potential unknowns that the position of asset climate in the u. S. Will only deteriorate for it in other words, is a very much behindthescenes that we run risk . Colin yeah, it is a waitandsee approach. It will not be linear, and it is likely to unfold in the coming weeks and months. Unlike yesterdays attack, the iranians are going to have an air of plausible deniability. There will be ambiguity about who is actually responsible for whatever tehran decides to unleash. What makes you say that . Iran said specifically after the death of the general that they would orchestrate and take credit for and not make any retaliatory attempts through proxies. It would all be done through the administered channels. Today, we got mixed messages before the president s speech. We had the foreign minister saying things have, down, but we had the ayatollah saying that is not the case. These nightmare scenarios will continue. What makes you think that proxies will get involved now. Colin the iranians responded and claimed response milady for the missile attack. It is onto the next phase. 2019, and ileling think it is only a matter of time before some other actors that have truly global reach are unleashed against not only the United States, but u. S. Interests and allied interests around the region. Amanda you talk about nonlinear. One thing we are aware of in this region is that stabilization is key, and what is kind of an interaction between two of the parties actually a ramification for any of the others. What are the destabilizing effects that we need to worry about now in this region . Colin i would be very concerned about iranian actions against gold patients, particularly saudi arabia. There is clear concern about israel as well. Saber rattling the ongoing for the past couple of months. The is reallys are not afraid to defend themselves and they have done so repeatedly and they have launched strikes in lebanon, iraq and syria elsewhere and will continue to do so if they feel threatened. Vonnie did the president make the right choice with the rhetoric today . It was pretty hawkish, blaming iran for standing down or taking the credit for iran standing down. Iran has not said it is standing down. Colin i think the president did the right thing by deescalating and taking the offramp. The situation, i have whiplash from tracking all the changes over the past couple of days. I think these next couple of weeks will be very telling. The president called on europeans to be more involved. Called on nato to be more involved. Whether or not they will is yet to be seen, but it will be quite telling whether or not there will be some kind of Market Centers around the iran nuclear deal, and in the meantime, whether or not the proxies launched strikes. Vonnie will leave it there. Amanda appreciate your time, colin clark, thank you. Joining us now for more Market Analysis on these headlines in, we have chief Investment Officer adiq, and i do not envy you who actually have to decide. How do you start to measure how to invest in this climate and how these events might change it . Saadiq you have to anticipate more geopolitical risks, all of these things have to wait into your 2020 and onwards outlook. What we look at is fundamentally, the u. S. Economy is good, but we will have multiple volatility coming through. We can play that for derivatives, when we get lofty and see certain things like this, it might be impacted on the short term rather than the long term and if you do have situations where there is a shortterm pullback, but the fundamentals remain strong, those are great buying opportunities for us to invest in. The u. S. Right now, iran tensions, i think this is more of a shortterm noise and longerterm situation, and i think just the reaction by iran s clues this will not get extremely escalated, and the way that trump actually reacted, a little more calm her, and that gave the markets comfort today, too. Vonnie there is a note in my inbox talking about u. S. Foreign policy being the new u. S. Trade policy. That regards markets, at least. In other words, the reason behind volatility we might see. Is that going to be the case through the first half of this year . Are we going to have market problems from u. S. Policy or lack thereof . Sadiq i think you will. If you think about what is going on on the u. S. Front, we still deal. O get the u. S. Trade anything goes wrong there, we will see issues. Secondly, tensions between iran and u. S. Will still continue on for the remainder part of this year. Or for the quarter. It will not go away overnight. Any sort of policies whether , allchina, right or europe going to be issues. One positive, the u. S. Canada mexico deal got done. I do think that things are progressing, but as we have seen in the past, they do not get done quickly, they do not go without some major tensions back and forth, so we will see the market escalated at times and higher volatility throughout the year. Amanda one of the hardest markets to predict correctly in the last few years, almost 10 years, has been the bond market and where it would go for it to im going to ask you your prediction. What do you think when you think of where yields go from here . Sadiq i think yields will be slightly higher by the end of the year than they are today. I do not think they will be a major impact to those deals, but i do think that people are still striving for those. One thing that will keep yields relatively low is that in other parts of the world, we are seeing negative yields. When you are getting negative yields in europe as example, i do think the yields will remain relatively low, but they will inch up higher than where we are today. Vonnie they have been saying it is the year for emerging markets. Is it . Sadiq yeah. This is one of the areas that we arege our forecast, and we definitely more optimistic about emerging markets, partially tied to the fact that we are seeing improvements on global trade, the phase one deal if that get signed. The fact that we are not going to see likely more additional tariffs coming through, gain will be a good positivity as well. China has held up fairly well. There are other winners, you have winners in taiwan, and you have countries outside of the normal u. S. Seven china situation that are benefiting. Vietnam is another one as well. You see supply chains get disrupted, they will go on different angles around emerging markets, so other parts of emerging markets will benefit. Last year, we saw brazil and russia benefit as well. Lots of additional elements of emerging markets will do stronger. It has probably the best potential for strongest upside, but i still think it will not be as strong as the u. S. By the end of the year. Vonnie thank you for joining us. Adatia. Sadiq thank you. Vonnie coming up, investors scrambled to determine the cause of the fatal boeing 737 crash and iran. Details next. This is bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn in new york. Amanda i am amanda lange in toronto. Jet bound for ukraine crashed in iran early wednesday that killed all 176 passengers. 63 of those were canadian. Just sort of an obviously, terrible accident, but not a business implication or something that the market is treating a little more seriously. Certainly. You saw that in the markets, boeing shares pulled out as much as 4 just to have these headlines out there, implicating another 737 boeing jet is obviously not what the company needed to have it the news today. As far as business ramifications for boeing, it is really not clear at this point, there has been conflicting reports as to what exactly caused this crash and the iranians initially said it was a technical problem, with some officials implying it may be an engine failure. Withdrawing the statement that all possibilities are still on the table, so it is not clear what may have caused the plane to crash. It is hard to say what the longterm impacts of boeing is going to be. Vonnie it is definitely a 737 max precursor, so not the same thing we have been speaking about for a year plus, but there were developments on that front with an aboutface on the part of boeing. Absolutely. They recommended Simulator Training for pilots on the 737 max, and this is a significant development. Thatg has been insisting pilots do not need to go through Simulator Training and that the computerbased training is sufficient. Some of the confusion among regulators about the actual impact of that Flight Control software on the plane. For boeing to take a step back and say, this plane is fundamentally different in the plane has specific features that pilot needs to be properly trained to handle is a huge turn in this crisis, but it will be significantly expensive for boeing to go down this path. Amanda expensive and also an admiss that could be a liability for the company and also an admission that could be a liability for the company. There will be blame somewhere. It with pilott is saying this from all along, that they needed additional training, that the manuals were complicated, etc, does this become a legal problem . It certainly as to the legal case that is building against boeing. There are a number of lawsuits still outstanding and we do not know exactly where all of those will fall out. The department of justice is investigating this, so a lot to enfold in terms of boeings legal liabilities, but as far as the max, this will delay the return to service just from a sheer logistical point of view. Theyre only 34 simulators currently certified for the 737 max, so to get all of those pilots is going to take time, it is going to take the geographical issues in terms of giving the pilots to the simulators, and for airlines, that means they will not necessarily be able to introduce these planes on schedule on the timeline they had been preparing for, which could mean more delays, more expenses, and more headaches. Vonnie boeing is down about 1. 3 right now. Our thanks to Brooke Sutherland of bloomberg opinion. A firm with assets tying almost 20 . We will tell you what kind of layoffs are on the table. This is bloomberg. This is bloomberg markets, i am Amanda Langdon toronto. Vonnie i am vonnie quinn in new york. Management is seeing the difference between five and 10 of scaling its workforce after its funds lost assets last year. Joining us with the latest is Bloomberg News finance reporter. How unusual is this . We get layoffs most places most years. We do get layoffs, but about a year ago, they had also cut jobs at this percentage. At the end of 2018, we had more than 1000 person headcount, and last year, a 900 person headcount, so another 5 to 10 on top of that, you start to see the find drop down below 1000 people. It is a unique story for certain. Amanda unique and yet, it rang a bell for me and you do a quick search. At the beginning of 2019, they headlines were, why is it doing so badly when the markets are doing so well. It really familiar. What has gone on . Sonali something that they said last year and that he would stick to his beliefs, and they were not having a strategy problem but an intuition problem. A lot of the factors they were using were not performing in this market. To be fair, it has been a test year and we are seeing assets a lot lower, but there are other types of strategies that are performing in leading the markets again like their fixed income strategy, so it is not like he is not holding on strongly to his beliefs, some of his style through the alternative funds lost 8. 2 last r at a time when even vonnie what is working . Sonali the fixed income strategy is really exciting and something that other Asset Managers are really trying to replicate. That is working as well as some of the smaller strategies. I have got to say, the other thing is they were losing some of their fee revenue, but they were also facing rising costs. Cost cutsht see the and say maybe some of them in this environment were necessary. That is what the firm has told us as well. It is a tough time, a tough decision, but a right decision for them to make right now. Amanda does it become an issue where they could lose key people because it is a fear of underperformance . Sonali right now, they are being proactive in terms of cutting the people they think are necessary to cut. This is the inherent nature of job cuts. That is always a question mark. We have seen some people in and but it has become much more of an institutional firm than what it was in the late 1990s. And when it was a house of really creating this industry, so it is to be seen, but right now, the numbers already show a decline, so where they are at the end of this year will be telling. Good insight into this. Just a quick reminder to our viewers, you can interact with all the charts you see on the network on gtv. From new york and toronto, this is bloomberg. Lets get the first word. President trump says iran appears to be standing down. That is after the Islamic Republic attacked u. S. Bases in iraq. In televised remarks to the nation today, trump defended the u. S. Strike on a top iranian general and off the attack was a would impose new sanctions on tehran and that as long as he is president , iran would never be allowed to have a nuclear weapon. Senate Majority Leader Mitch Mcconnell said he would launch president comes impeachment trial on his terms. He said there would be no haggling over procedure. Power andon abuse of obstruction of congress could begin as and as this week if nancy pelosi since the articles in richmond to the senate. Cleanup is underway in puerto rico following a series of strong earthquakes. Official site hundreds of people are stay in government shoulders. The