european trading day. from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: we are continuing to see bond yields backing up a little bit, today up another three basis points for the german ten-year in advance of the ecb thursday. ,quity markets is the big defensive bond proxy names on offer today. stocks like nestle are down. unilever, these kind of names are trading lower. value over the last few sessions has caught a bid. this is over in the united states, the value index fading a little bit. what we haven't seen over the last few days has been a continuation of the big brown proxy names content -- the big bond proxy names continuing to run on and on. whether this is a turning point, we will wait and see, but

definitely keep an eye on what is happening with the german 10 year yield. stocks back to flat. we are very much waiting for that ecb meeting come thursday. vonnie: and of course, u.s. yields following european yields. 1.67% rightis at now, so higher in tandem. a little more risk off for the equities portion. as you can see come the s&p 500 down 0.6%. a couple of stocks i wanted to point to as well. facebook down 1% in conjunction with the broader market. facebook, google, and apple all todayt so welcome news with the expanded role of digital services in europe by the antitrust regulator for europe. l brands having its investor day in columbus, ohio. the very first thing they talked about was a sick individual,

referring to jeffrey epstein. mention him by name, but did say that situation is over with now, and continued on talks. victoria's secret has a lot of work to do. the stock is down 30% plus this year, just higher by about 1% right now. guy: let's get to a bloomberg exclusive. shares under a little bit of pressure today as we come into the close, down circa 4%, after reporting earnings that missed analysts estimates at partners group. joining us is the co-ceo, david layton. reaction to your numbers today. i was going back and couldn't find a reaction like this for quite some time. any sense of why performance

seems to be the excuse? is that it? david: i think there's a lot of good coming out of this period. assets under management were up by 16%. we have real structural demand for the products and services we provide. we earned a very stable management fee, which has been consistent since our ipo into thousand six, at about 120 -- aboutour ipo in 2006 at 120 basis points. we sell investments. the market was expecting about 137 basis points of performance fees. we issued 120 basis points -- we issued 127 basis points, and the market has been chewing on that. guy: assets have continued to flooded to private markets, increasingly on par with public markets. do you see anything that is going to stop that trend? david: i wouldn't say there is

anything that is going to stop the flow of capital from public markets into private markets based on what we see today. we see real, structural demand from institutional investors around the world, looking to add more yield into their portfolio. private equity has been a relatively small allocation historically, a novelty allocation for some. 1%, 2%, 3%. but as yield becomes harder to find, private equity is becoming a bigger part of the story. vonnie: what are you finding in terms of exits? changing?ironment is it less attractive to actually exit now? calls we made a couple of in the first quarter of this year to postpone some liquidity events. we have seen transaction activity down about 30% from the first half of 2018 to the first half of 2019. at the same time, there's been a meaningful pop act in volumes.

we used to have a number of liquidity events -- we still have a number of liquidity events that our firm is pursuing at the moment, and we think it was more of a short-term blip as opposed to a long-term, structural change. vonnie: what do you make of what has been happening with the major silicon valley companies like uber, lyft, we work, which obviously hasn't gone public yet? valuations are a little bit under pressure in the sense that investors seem to be wanting more proof right now. is that also a blip? david: i'm not sure if that is a blip or not. i think the reality is there have been probably 180 ipos that have been postponed over the first part of this year, and part of that is from investors really wanting to see more proof . i think we work -- i think

wework is the latest. i think investors will require not just a story, but a consistent track record, and i think that is here to stay. guy: let's talk about what investors really want right now, and that is anything that is safe. call it what you will. bond proxies in the private markets are doing well. bond proxies in the public markets, the valuations attached some of these companies, the multiples they trade on, absolutely i watering. is just extreme, and probably more extreme in the private markets. can you stretch that elastic band? david: i think it is a great question. when we look at what is happening in private markets today, i think the search for yield that pushes them into private markets, and yet people

know it is a fragile environment at the moment, so they're looking for anything that has that sticker that says secure, that says defensive, and bidding up those prices. we see unprecedented valuations for many defensive assets today. as opposed to being the next person that jumps in after that next defensive deal, we think the premiums being paid to those businesses largely negate the defensive characteristics that the underlying businesses have, so we believe that offense is the new defense. instead of believing that a position in a defensive business is going to carry us through, we are looking for situations where we can actively build defensive characteristics and slightly smaller businesses. maybe it is not a stable global platform today, but when we believe we can help them convert their business model over from a be in transactional model. guy: you're still trying to create the same thing. they desire is not going away

anytime soon. david: not going away, but you have to be active in building it as opposed to helping you can go by it in the marketplace because it is too expensive. lulu: what do you make of -- vonnie: what do you make of ?lizabeth warren's proposal proposal.hink it is a the idea is that you would interlink liabilities between portfolio companies for fund managers. i think that is a structural change for the way people have viewed risk historically and it needs to be looked at very carefully. york new york was the invention of the limited liability corporation. the fact that people could take risk without a fear it would spill over into other parts of their portfolio. i think if you tinker with that equation and look for

liabilities to be interlinked too much, that needs to be looked at very carefully. vonnie: how has softbank messed with your area? david: i wouldn't say messed with our area. obviously they've got a tremendous amount of capital. we tend to spend a little less time focused on the types of businesses they are looking to invest in, and we spend more time, to be honest, with pretty boring businesses where we can help them to diversify, help them to expand into new geographies, and we don't have a tremendous amount of overlap, to be honest. guy: it's been great seeing you on set here in london. make sure you come back. david layton, partners group co-ceo. vonnie: indeed. let's check global markets now. here's abigail doolittle. abigail: certainly an interesting trading day on this

tuesday. a mixed picture. here in the u.s., the s&p 500 and the nasdaq lower. in germany, the dax is higher. in the asian session, the nikkei finished higher. this is true between risk assets in haven assets. haven bonds are selling off once again, so investors a little bit confused. we take a look at a five-day day chart of the 10 year yield. this is the biggest backup since the 2016 election. both stocks and bonds selling off on the day. take a look at the commodity complex, up 0.5% on the day. that is a riskier, growthier commodity. oil trading higher. that haven yen down against the dollar. we have the vix up slightly. a mixed picture, but slightly shades of risk leading the way. when we go into the imap using the s&p 500 on the bloomberg

terminal, this is a really interesting picture. at first glance, it looks risk off. on top, energy trading higher, and sympathy with oil. hier picture.wt on bottom, tech is the worst, but real estate down 1.8%. it is going to be interesting to see how all of these mixed signals play out as they go on, and of course, as the week goes on to next week's fed meeting. vonnie: all right, thank you. next up, we are going to speaking with mama saying -- with manish singh of crossbridge capital. that's next. this is bloomberg. ♪

♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on ."loomberg markets let's check in on the bloomberg first word news. here with the details, courtney donohoe. courtney: boris johnson is pledging to work on an exit deal with the european union. lawmakers have blocked johnson's brexit strategy. they've handed him his sixth legislative defeat in a row. he tried to get numbers of his own conservative party to back his strategy, a guarantee of leaving the eu on october 31, even without a deal, and they refused. north korea sending a message to the u.s. they testfired two short-range missile after saying they were willing to resume nuclear talks. u.s. officials expressed a desire for negotiations that made no mention of new concessions. president trump's approval

, according to a new poll, is 38% in august, down from 44% in june. meanwhile, six out of 10 say a recession is either very likely or somewhat likely next year. the richest american would like to see their fortunes shrink under a new wealth tax proposed by democratic presidential candidate elizabeth warninren. billionaires such as jeff bezos, could have lost billions if they had done nothing to avoid the tax. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. guy: thank you very much indeed. investors are counting down to the ecb decision day this thursday. mario draghi is facing

unprecedented pushback against restarting qe. singh, us now, manish chief investment officer at crossbridge capital. be in any wayg to successful in kickstarting the euro zone economy ? they are expected to throw the kitchen sink at this, regardless of what the hawks say. what is he going to do? manish: i don't think he will be able to get the economy kick started. he may end up helping the banks because what we have seen over years of negative or zero rates is there should be enough credit available, but from a household point of view, somebody who is looking at retirement and was counting on 5% return sees that they are going to get .1%, .2%, or negative, you are going to save more and spend less, and that hits your economy.

this has been going on for three years now. guy: mark carney was in new york a little earlier on, the governor of the bank of england. here's what he had to say. mr. carney: part of the challenge, we think, is that we are not in, but we are getting closer to a global liquidity drought. that is a question in terms of policy space, but it is also a comment on where we see global equilibrium interest rates going. monetary policy is reaching the limits of what it can achieve, how do investors react to that? we seen bund yields going more and more negative. nevertheless, how should investors -- do investors need to start thinking about how they should reposition for the point in time where europe is in the liquidity trap? japan is already there. how do we've invest in that kind of scenario -- how do we invest in that kind of scenario?

manish: i'm looking at where do i invest in don't lose money, rather than making money. if you want to make good returns, you have a cross between a capitalist economy, and you have the new economy and new business is being created, so it is not happening in europe. you haven't had the bankruptcies. unprofitable assets are still there. you are hearing now that what the ecb is doing will not be correct, so there may be a snapback. then you invest in equities. lvmh, all of these which are really a bet on global growth. what the ecb is planning to do or what is in the pipeline, maybe banks finally do better. you've seen in the last two weeks how european banks have

been rallying. so these are the pockets where i would look to invest. germany is probably in recession, with negative interest rates. bad numbers in the french economy. inflation has hardly risen by 0.1%. it just doesn't give you much hope unless you see governments really looking at structural changes, and we haven't seen that. we have germany saying they might run an unbalanced budget. we will see what happens with the euro zone. vonnie: what is your view on the euro? the amount you invest in where you invest will depend on the currency, too. does it weaken further from here? manish: my view is you have to see euro from the view of what is the currency that can take the flow if investors leave dollar. look at the size of the currencies. sterling, swiss franc, they can't take the flow.

conversely, euro will keep benefiting as the second largest currency. even when you see japanese investors coming in and hedging during the -- hedging using the euro currency, it doesn't seem you will see a meaningful correction in euro-dollar. meview has been that despite being very bearish on the euro zone economy, i do not see euro-dollar breaching and going below 1.05. i really don't see euro currency really coming under pressure from the view that people have on your zone economy. vonnie: do you like the united states, then? you've said europe is a place where your not looking to make money. you are just looking to not lose money. do you make money in the u.s.? manish: absolutely. i think the u.s. economy is the best economy to be in. what we have seen is a clear turnaround in what the fed was doing. look at what happened last year.

a lot of it is down to what fed was doing. fed is raising rates. that happens to liquidity everywhere, even in emerging market economies, and then you have a correction in equity markets. fed is completely backed up on that. if you had one rate cut, you might have another rate cut in 10 days, and that really helps the economy. consumers are still buying the big-ticket items. i also believe that president trump is backing off on trade war. there is reconciliation from the side of china as well. more buying of assets provided trump is lenient with huawei. i think reconciliation is there. consumers are not in a bad shape. services pmi is still quite strong, even though manufacturing is down. the fed rate cut just makes sense to make money in the of us market. manish, holdonnie:

those thoughts. we have much more to talk about. remember the function gtv allows you to browse all of the recent charts featured on bloomberg tv, catch up on kin analysis, and savior favorites for future reference -- on key analysis, and save your favorites for future reference. this is bloomberg. ♪

vonnie: live pictures now from capitol hill. we have a housing finance committee hearing at the moment from hud secretary ben carson. treasury secretary steve mnuchin has been speaking as well. we are looking for updates a little later on on housing finance reform. of course, fannie and freddie have been rallying off the back of expectations that they will be a resolution to the housing finance issue in the united states. don't forget, bloomberg subscribers can follow the

proceedings on a terminal. go>. use the option live < time for a look at some of the biggest business stories, news right now. i rim co. has picked six banks for top roles in its ipo -- aramco has picked six banks for top roles in its ipo. it invited more than 20 advisory firms to compete. the ipo is expected to be the biggest ever. home fitness startup peloton plans to start its ipo roadshow this week. they plan to start marketing its offering to top it into as soon as tomorrow. peloton is seeking a valuation of $8 billion to $10 billion. jack ma is ending his 20 year reign at alibaba, one of the most spectacular creations of wealth the world is ever seen. he is stepping down as chairman of the chinese company on his 55th birthday. $58fortune is valued at

billion. ma cofounded alibaba and his own apartment. that is your latest bloomberg business flash. equities are lower in the session. the s&p 500 down about 0.6%. the dow is improving, but still down about 0.3%. the nasdaq is the worst performer today, down 0.8%. guy: as we approach the end of the day here in europe, we are seeing european equity markets bid. volume is really, really big today. that is certainly what caught my eye. the other thing worth paying attention to is the defensive names, taking another knock today. nestle, novartis, roche, those kind of names. the banks are on the front foot as we come to the close here in europe. ♪

guy: european equity markets higher but not by much today. volume is good. we are getting rotation.

rotation is definitely happening . we are seeing defensive names coming under pressure, largely led by the bond market. the yields are backing up. in europe,ng that seeing it in the bund market, the ftse up around .5%. oil stocks doing well, the banks doing well. the dax is trading up a similar amount. a similar theme. the cac 40 absolutely flat. it has been dragged lower by utilities. we are hearing what has been happening with ubs earlier on. let's get into the rotation story. i do not think the action is here at a headline level. the action is one level below the surface or two levels below the surface. this is where things get interesting. let's look at the top end of what we are seeing in the market. oil and gas doing well. run. continue their solid

this is being driven by the backup we are seeing in yields. resources are doing ok, insurance doing ok. this move continuing with the cyclical names and the banking name. that trend is in place. the defensive names, which the market is so in love with, may be falling out of love with as yields backup. these are bond proxies. look at the bottom end of the market and what is happening in terms of the rotation. health care is trading down 1.2%. food and beverage trading down by 1.2%. europere huge sectors in . absolutely massive. technology is down 1.1%. it is tiny in comparison to the sectors. food and beverage, nestle, these are the kinds of names we are talking about. , these kinds of companies are being rotated out. you can see it in some of the other names. personal household goods. these are the names we are

seeing. the question is does this trend continue? let's take a look at the single stocks. you see this on your bloomberg. you go to the move screen on these individual indexes. button click the points and you will see the effect some of these heavyweights are having. nestle down 1.62%. unilever down 1.83%. , a big german cyclical exposed to the global economy, this massive a chemical giant trading up to .44%. the headline levels aren't -- trading up to .44%. the headline levels are important -- vonnie: here in the u.s., we are off our lows all the major indices are down. yields are higher off the back of european gains. 1.67 is the highest level we have seen in a while on the u.s. 10 year. gold futures around the $1500

mark. an interesting level to watch. we are talking about crude oil bauers earlier, scott says we will not breach $60 but we are making our way towards the $60 mark at $58.54. apple making moves today. we are waiting on the event. chipola lake getting hit by new york -- chipolltle getting hit, but has had a major gain. these are getting hit by carmakers. it has been a cautious day. the american express ceo talking at a market conference and mentioned how you have a cautious outlook under the global outlook. that is having an effect on the card makers. down 3%. guy: let's get back and talk to our guest, the chief investment officer at cross bridge capital.

we want to turn our focus to what is happening with brexit. i want to come back to comments earlier on by mark carney in new york, maybe he felt more able to talk about what is happening in the u.k. sterling volatility is at emerging-market levels. what you make of what is happening? >> what we are having is a tantrum. for a long time and parliament. least the -- at liberal dams do not want the u.k. to leave. and then there are people using the same anguish to achieve the same end and now you're left with the parliament that does not know what it wants and does not want an election. it is a complete straight of paralysis. the way out has to be through an election because you need to reconstitute the parliament or you will not go anywhere. from the sound of it, at least the u.k. is being held back by its parliament from not doing a

note yield. i do not know what is holding the eu back. the eu does not want to know deal either, because the economic situation in the earth and is extremely bad. it looks like we are going to go for an extension because the parliament is not having any , or maybe aion slight glimmer of hope that you come up with some sort of a deal by october 31. that is where we are. if you look at other data, he saw the u.k. data -- you are seeing weakness because it prices everything much quicker and the perception people have in general. if you look the economy, the economy is not doing as bad as people expected. germany is in a recession. we were told if the u.k. leaves the eu, the u.k. would be in recession. it is happening in germany, they have not left the eu.

we have paralysis, but talk about having no clarity. it is a terrible situation. vonnie: is there any trade you can put on to benefit the uncertainty, if not the process itself? manish: to be honest, not really. the trade has to be in sterling. sterling will rebound back to where it should be on parity and other models. what i be looking to do that trade now? no. there are a lot of things which are uncertain. if there is going to be a note yield exit on october 31, and that is a big if, then you will have a let down in sterling good if you think that will not happen, sterling will continue a trait good it is not i would be willing to do. i am not looking at doing much trade in europe in general because my belief is u.s. market is in a much better place on an opportunity cost basis and i would rather pick the u.s.

market over the european market. if you had to put money to work in the u.k., do you think if you had enough time you would make money? kenneth get more chaotic? -- can it get more chaotic? the political situation is so chaotic and people are so confused by what is going on, i'm wondering what the symmetrical story looks like. manish: one thing important watches the poll numbers. what happens after brexit and which government you have in place is far more important. if you have a majority tory government, and it is on record they will be taxcutting endless regulations, that is bullish for u.k. companies. if your view is medium to long-term, then you have to be a buyer. if you do a trait using leverage , then you cannot take the volatility. if you are not using leverage, and you have to be bullish on sterling because the poll numbers are indicating the

tories are going to be the majority party. guy: always good to see you. chief executive officer at cross bridge capital. the ftse 100 finishing your session highs. we dipped just a little during the auction process. finishing reasonably strong into the close with decent volume. do not forget to tune into bloomberg radio, the cable show. it will be on a are top of the hour. jonathan ferro is a new york, i will be joining him in london. dab digital radio in the london and around the world on all of your bloomberg devices. this is bloomberg. ♪ ♪

vonnie: live from new york, i am vonnie quinn. guy: and from london, i'm guy

johnson. this is "european close" on european -- on bloomberg markets. let's check in with first word news with courtney donohoe. the u.s. huawei says will need to hold talks with it, too. while weight is regarded as an important hardening chip in the trait or. the trump administrate -- in the trade war -- a bargaining chip in the trade war. global funds will no longer need approval to purchase quotas by chinese stocks and bonds. regulators not remove the overall cap on foreign purchases from the assets and is seen as another effort to open up china's financial system to the world. silicon valley's worst enemy has returned with even more power. -- has been picked as the executive vice president is the european union's digital affairs.

she squeezed huge penalties out of apple and google. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am courtney donohoe. this is bloomberg. vonnie: thank you. the headline from the senate housing finance committee hearing. early on steven mnuchin speaking that the u.s. wants to ensure china treats u.s. farmers fairly. that is one of your headlines coming out from the hearing. we anticipate hearing more about fannie and freddie throughout the afternoon. you can follow along on your bloomberg at live . bloomberg businessweek is continuing its study of the top mba programs. carol massar and jason kelly join us from new york. with them, the graduate business school's dean. : we are at columbia business school all day.

the 16th dean of columbia business school has been a longtime professor and also an award-winning scholar. >> we are so happy to be here with you. we have some of your students. it is sort of like college game day for business school. far inve you learned so the top job? >> thank you for taking the time to come and visit us. it is great to have you here. i look forward to having a new campus in two years when we moved there. a few things to say. i have been embraced with a lot of enthusiasm from my colleagues, and we are actually working on interesting initiatives at the school, both to improve and change education, and also to talk to business leaders that have been flocking

in to meet the new dean and see how they can be involved and help. i think it has been exciting for three months. that seems like a very long day. mba.: talk to us about the there is so much of a conversation about the cost of education. i am curious, how do you see the mba of the future? how do you justify the education with the cost? costis: a few things. first of all. we are constantly looking at the cost of education and trying to take cost out of the equation. we are also working on providing good financial aid to our students to facilitate that investment on their part. we are focusing on the value of the degree. because business is undergoing quite a bit of trade -- a bit of change, it is a great opportunity for us to innovate

in the value we offer our and i believe the mba degree now is a fantastic investment, both in terms of because return, simply you need new skills to succeed, and that is what we are striving to do here. i think the degree is robust, and i think because of the change we are undergoing, it is more valuable now than it was five or 10 years ago. leaders,se business alum will be with us later , when he and his friends are visiting you, what are they asking you for that may be different than what they were getting in the past in terms of teaching and the types of students you are turning out. costis: when you talk to business leaders, you realize that they are encountering two things. first of all, technology, data

analytics is changing the way their business is being transacted. they also understand the nature of the mba jobs, the types of jobs our graduates will do is itself changing over time. wayhey want to see in what are we going to best prepare students in order to participate in the digital future. they ask what we are doing in the curriculum, what are we doing experiential learning, how do we bring mba students with engineering students so they learn how to collaborate, because that is what they will do when they go to work. these are the types of things we talk about. carol: i am curious how much you talk about the u.s.-china trade spat in but that has done for students who come to get a degree but they are nervous about what does this mean, can i stay in the country, can i create a company? are seeings if you pushback or a decline in students from overseas that want to apply. costis: we have not experienced

that. carol: no change? costis: almost no change. we continue to have about 40% international students. two thirds of them just graduated and wanted to stay in the u.s. and found jobs in the u.s.. of the 40% that left, i think a lot of them wanted to go back in different areas of the world. our servicethat, economy in the u.s. depends on high skilled human capital. this is a problem we need to solve, not just for business education, but for training any type of high skilled labor that we would like to retain, and hopefully we will get to have the dialogue and moved to a solution. carol: are you having a dialogue with folks in washington about this issue? costis: there is some dialogue going on, yes. early steps. people understand that this is

an opportunity for the u.s. to , and people understand the value of high skilled human capital, which is how we help build companies, start companies , create new ideas, new technology. they recognize the value and hopefully we will keep talking about it and resolve it. >> 30 seconds left. if there was a single change you would foresee making in the curriculum, new class, a new area of study, what could we expect to see? costis: great. we have done a lot of work already doing technology analytics into the curriculum, and we will continue doing that. what we need to do now is introduce courses that tell our students how to better manage and lead in an environment where they have to collaborate and work with engineers.

it used to be that six mba graduates get in the room and solve a business problem. if you want to visualize what they're going to be doing next, if they're going to get in the room and they're going to be two m.p.h. strategist, two strategist, they need to understand what these people do and understand how to contribute, manage, and lead in that environment. >> thank you so much for having us. you've been a lovely host. we have loved working with your team. more from columbia business school. bonnie -- vonnie, we will send it back to you. thanks to jason kelly and carol massar. the stock of the hour is mark and heading toward a two date decline. 3% fordropping more than second day as mounting concern over congressional drug pricing action moves that stock lower. kailey leinz has more. kailey: it was down yesterday based on the goldman sachs note that said an onslaught of

pressure from capitol hill may be coming for these stocks now that congress is back from august recess. we are seeing some of that play out with nancy pelosi's drug pricing plan which is starting to circulate, and analysts are describing is quite aggressive. one of the highlights is health and human services would directly negotiator pricing for the 250 top-selling drugs in the u.s., that is for all domestic sales and not just medicare. the companies that do not negotiate would face a penalty equal to 75% of the drugs prior year growth sales. it would also create a cap on pricing based on the international index. also time drug prices to inflation, i have a chart you can see showing how pharma price inflation has far outpaced the pace of regular inflation and this proposal would have that come down to the inflation rate or you would pay the difference on the access. this is scary for drugmakers, however analysts say it is

unlikely this would past, that it could get the support of a republican senate, and it is unlikely anything on drug pricing will come to fruition before 2020. guy: that is how politics works. you come up with an extreme plan, it does not pass, but then something that looks similar but not as aggressive does. what is the risk? kailey: that is certainly a risk. congress has said they want to take action on drug prices, as has the president. one of the fears is that it seems below c and president trump seem to have a like mind about this. -- nancy pelosi and president trump seem to have a like mind about this. is kailey leinz with our stock of the hour. guy: coming up, we will head back to the columbus -- the columbia business school and be speaking with james gorman, morgan stanley ceo. that is coming up at 2:30 new york time. this is bloomberg.

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is time for our global battle of the charts. he can always see these charts on the bloomberg. run gtv . >> as palatine prepares to ride into its ipo roadshow, we try to figure out what it will do. we thought it would be a good time to look at the health of the ipo market so far. even though we have had big name ipos like uber and lyft, the market has not had a very big year. as you can see from my chart, the third quarter of this year is going to be the worst in a number of years. you have to go back to 2016, the beginning of 2016, to find a worse quarter. why is that? aboutuarter was down from $72 billion, and uber and lyft

code, while they boosted the , investors have not been inspired to come forth and invest more. that is a big issue for wework, which has already had to slash its valuation from $67 billion in this last round of investment to $20 billion. vonnie: exactly, and we just learned about pelaton as well. great chart. guy, what you have for us? guy: one of the biggest trends in equity markets has been this dispersion we have seen between value and growth. are we steamy -- are we starting to see that come to an end? this is absently pivotal moment for global equity markets. this is the ratio of value to growth. what you see, you can see the red line is value has been losing out, going down and down.

we have seen in the last 24 hours the line being broken as value finally starts to catch a bid. if this carries on, a lot of portfolios are out of position. the extreme positioning we have had in the markets between growth and value may finally, unstuck. pay attention to this one. individual equity market levels are important. the rotation below the surface is vital. you can find this chart on the bloomberg. vonnie: you both set the standard so high. they were both amazing charts. today isy the winner nabila ahmed. let's not celebrate to wildly. coming up, david mcintosh of the club for growth will join david westin. this is bloomberg. ♪

david: from bloomberg world

headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddie mac testimony. emma chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be