joined live from london as we wrap up trading and the next hour, mark, what are you watching? mark: european stocks falling for a fifth time this day. bolstering the case for more fed tightening. the european close starts right now. vonnie: we take you from london to berlin in the next hour. mark: stocks fall for the fifth consecutive day. five days of decline. we haven't had a game yet. february, the weekly decline, 14 -- 4.2%. we saw again for the stock 600 of 3.7%. every industry is down this year. we have a decline of roughly 10%. 914 billion. we are focusing on the jobs

report. the big steel company. it has supplied steel for new york's one world trade center, london's wimberley stadium. it is planning to raise $3 million from investors. it is selling a billion dollar stake in its spanish auto-parts maker to write out this slumping steel price. china pushes lots of metal onto the world market at record levels. earlier, the stock was down as much as 10.5%. we are down in her 4%. i want to show you shares. we will hear from the cfo later. shares are up by 2.5%. we were up as much as 5.6% today. bigger than estimated fourth-quarter earnings, down by 52%. investors are focusing on the investment bank. we have an overhaul and we have revenue from trading. how rare is that from an investment tank?

revenue from trading. as you know, most of it is bigger. competitors are finding that very hard to achieve. hence the gain ensure price today. vonnie: looking forward to that. but th euros gains into perspective for us. mark: we are in for the best weekly gain against the dollar since may last year. that is something. mainly, that has to do with the dollar's decline. we rose to a three-month high yesterday. option traders are the most positive on the currency since 2009. it begs the question what can ecb president mario draghi due to the base this currency? on the a couple of days ago he reiterated that they are considering looking at stimulus again in march and the only currency this week that hasn't fallen against the euro is the japanese yen and as we know, since last friday, when the instigated this

negative interest rate strategy, it is trading higher against the dollar. they are finding it difficult to push their currencies in that direction. today's jobsng at report and a particular, the participation rate. up .1%.it took it is not quite as the increase that our next guest was looking for, but it is the highest since last april. continuing to grow at about 1% a year. i am wondering if the more dynamic u.s. economy, or if it will need to be even better participation. we are 19 minutes into trading day in the u.s.. not only stephen, but broughton, as well, in terms of the number of stocks falling to rising. the nasdaq's losses have

extended to 2.2%. even as the dow and the s&p fall by more than 1% each. when i say that losses are broadening, take a look at the imap on bloomberg and you will see what i'm talking about. before, you are a handful of groups that were higher. now, only one telik munication, this -- consumer discretionary now lower. that is probably due to media stocks which i will get to in a few moments. technology, energy, and health care also declining. technology, a big part of the decline today as we see the continued selloff and large-cap stocks in that sector. example, selling off. seeing it somewhat today. linkedin now down 40% after that disappointing forecast on its sales. hess is leading the declines thereafter the company posted a big loss in the fourth quarter, $1.8 billion, and said it would be raising money through a share sale.

falling for the second day in a row after its dividend cut. speaking of energy stocks, oil is also down today. -- i stand corrected, oil has turned around. it had been declining, but we are still seeing pressure on energy stocks despite that recovery in oil prices. vonnie: rates seem to be slightly different than that of its stocks. the reason stocks are negative, the rate is actually higher, meaning there is no more of a likelihood that the fed will be raising rates this year, onerestingly enough your it my bloomberg terminal, it looks at the probability baked into interest rate futures of every increase. a couple of days ago, you are seeing at least a 50% chance of a rate increase until february of next year. now, you are seeing 55% in december of this year. the probability is all down the line that has picked up with the exception of the march meeting which is still looking unlike -- unlikely according to interest rates. the 10 year is another way to

measure this. we are seeing yard stick up. finally, the dollar, the flipside of what mark was talking about a few moments ago. the dollar strength today versus the yen and euro and pound falling versus the dollar, as well. time to check in on first work news. more from our news desk. courtney. courtney: the panel ruled that assange had been arbitrarily detained by the u.k. and sweden since 2010 and should be freed. he spoke with reporters today. >> i am being detained without charge in this country. the united kingdom, for 5.5 years. today, that detention without charge has been found by the highest organization in the united nations to be unlawful.

vonnie: he has been holed up in since 2012. he would be extradited to sweden and could end up in the u.s. being question about leaked, classified documents. a british government spokesman said the u.n. ruling changes nothing. the gains will go on the organizers of the rio de janeiro olympics that they have no intention of canceling the games because of the outbreak of the zika virus. organizers fear that the virus could scare off foreign tourists. there will be a historic meeting next week in cuba. pope francis will meet with the head of the russian orthodox church. it is the first time the heads of the two churches have met. eastern and western christianity split almost 1000 years ago over theological differences. here in new york, a man has been arrested after a small drone crashed into the empire state building. the drone hit the 40th floor of

the skyscraper last night. no one was hurt. the man was arrested when he went to the building security office and asked for his drone back. latest 24 hours a day powered by our 2400 journalists and more than 150 news bureaus around the world. courtney donohoe. mark? mark: coming up on bloomberg television, the jobless rate falls to an eight year low in the u.s.. what does it mean for investors on main street? we hear from a bloomberg columnist next.

mark: looking back to bloomberg markets. this is the european close.

vonnie: china has surpassed canada is the biggest u.s. trading partner. the u.s. took and 15% fewer goods from canada last year while china and its exports rose more than 3%. canada is still the biggest destination for u.s. exports. meanwhile, a chinese investor group has a foothold in the highly competitive u.s. equity market. the chicago stock exchange and the shanghai stock enterprise group. we normally return -- the terms of the deal. printers are now back in the market to buy. starter homes are more expensive, but financing does not cost as much. s h a loans can cheaper. mortgage is used mostly by first time buyers, 22% of all loan originations in december up from 17% a year ago. that is your bloomberg business

flash for this hour. mark: as we have been saying all day today, u.s. job growth settling into a sustainable pace in january. the unemployment rate dropped into an eight year low of 4.9%. the report showed that hourly earnings rose more than estimated by the most in almost seven years. to make it -- to make sense of it all, bloomberg columnist and chief economic advisor. thank you for joining us today. >> i read your pre-job report piece on bloomberg view. you said to reduce risk, the jobs report needs to contain three signals. did we achieve all of those signals? mohammed: this is a good job report despite a below consensus job creation number. it is good for the following reasons. as you mentioned, wages are going up and hours worked are

going up which means more money in the pocket of the consumer. secondly, the participation rate is going up which means that people are coming back into the labor force. that is good for the longer-term potential of the economy. thirdly, we have an unemployment rate now at an eight year low. but it all together, this is good for mainstream and they will be good for wall street over the longer-term., and this is important qualification, that is why yields are higher in the stock market is lower. but it means that you cannot take a fed hike plea off the table. wax that is interesting. julie just showed us fed funds futures which are now showing a december rate hike above 50%. as you know, it was below 50%. you are not ruling out a march hike? tooverall, that hike up twice this year. not before that they signaled earlier. -there is a preference to try to get a second hike out of the way quickly.

then they are just targeting the economy. they also have an eye on risk appetite. they want to balance these two elements. hikeldn't take a march would be off the table. i don't think it is likely, but the market have priced it at almost zero. i think i was an exaggeration. you put your money where your mouth was. you said you said unit three things out of this report. wages rising, we got that. you also said we needed to see participation rate take up 2/10 of a percent. one with the participation rate get even higher and what does it mean for full employment? will geti think it higher. we won't go back to where we were two years ago. i think our major demographic shift going on, major technological shift going on. we will continue to see a drop. importantly, we will see wages go up. why do i say importantly?

because that is ultimately what supports consumption which is still the main driver of u.s. gdp. i look at this report, was a great? no. was it solid too good? yes. was i disappointed we didn't create more than 151,000 jobs? sure, but it is still a good number given that december was so high. i'm good you tell you something the george magnus said on bloomberg surveillance this warning. generally, he is an optimist, but you did point out weaknesses in the economy. let's have a listen. >> there are lots of soft passes -- patches. business investment in the united states is not that great. images being built up high. sales have not kept pace. there is a correction going on with the dollar. all recessions that we have had before have been preceded by a surge in oil prices. vonnie: the point is that he

doesn't see a recession coming, but he listed a lot of weaknesses. mohammed: remember that the difference between economic liftoff and escape velocity, which we haven't had yet, and the slow growth economy am a which is what we are getting, what he is citing is the other side of the low growth equation. this is an economy in the u.s. that is growing at 2-2 .5%. it is battling to headwinds. he had one from a weak global economy and the had one from a volatile commercial market. it is still managing to grow it to point to 5%. it is not as escape velocity and that is frustrating. that is why george is right in saying there are things that we should worry about. it is still growing solidly. the jobs report, the bloomberg dollar index which tracks the dollar against 10 of its leading peers, for the week, was down by 2.6 percent. its worst week since 2009. it is now down a mere 1.9%.

since march.ek with those who were maybe rising off the dollar ahead of the jobs report, where they may be a little bit premature? mohammed: yes they were. for the simple reason that the interest rate market one too far and taking the fed out of the equation for 2016. we have had enormous sentiment about what the fed is likely to do. over the last few weeks, the market got comfortable with the notion that the fed would be on hold, most likely for the whole of 2016. i think that was too early. it was too early to make that judgment. what you are seeing now is that the interest rate market is repricing interest rate expectations. as it reprises up its interest rate expectations, the dollar strengthens. this is purely an interest rate expectations story reflecting on the currency market. >> it is not quite sure between the 10 year yield at 1.88%.

there is a little hesitation here. mohammed: there is. remember, these are the marginal changes that affect the day to day fluctuations in market value. relative to where we were higheray, we are having expectations of interest rate moves, not predominate -- not deterministically higher, but higher. that is being reflected both in the equity markets lower and in the dollar, stronger. mark: mohammed, don't move, we will carry on our chat. please stay with us. more ahead with mohammed of bloomberg. stay with us, bloomberg. the european close. 12 minutes away from the european close. stick around.

♪ ♪ vonnie: live from bloomberg

world headquarters, you're watching the european close, i am vonnie quinn. london, mom it is still with us. thank you for sticking around. out of the big four, the boj, the bank of england, the ecb, and the fed, which central bank do you envy the least? which one do you envy the least? i will not save nv the most, but envy the least and why? mohammed: japan and frankfurt. they are struggling to maintain economic growth in the context of some significant structural headwinds. in japan, you have had two decades of no growth area in europe, you are dealing with still pockets of excessive indebtedness plus you have to -- you have the refugee issue.

the ones i have the most sympathy with that are having an enormous burden that they are carrying are in tokyo and frankfurt. i think those are the ones that are doing -- are expected to do with you much with tools of that are ill-equipped for the challenges. >> this comes back to a bigger point. i know you have been talking about lately. nowentral banks, globally possess these tools which could unleash genuine earnings and genuine growth? seems they don't, which to be the answer, who possesses the tools and will they use them? mohammed: now, we should be pretty sure they don't have it. we have the analytics, we have the demonstration, they have been doing remarkable things. yet, they are not getting the growth outcomes that they themselves expected. i think we know by now that central banks cannot live to the

economy on their own. we also know that there are lots of costs, lateral damage, unintended consequences of relying just on central banks. what do we need? the four things i have talked about in my book that was out last week, progrowth structural reform, particularly on infrastructure, tax regime ,eform, labor market retraining a better allocation of aggregate demand, matching better the willingness and ability to spend. we need to deal with these difficult overhangs and we need a lot better policy coordination. this is not an engineering issue. this is a political and limitation challenge. >> speaking of politics coronation, i'm sure you have been following some of the debates this week about whether central banks are aligned covertly a little bit, and the potential for some kind of new accord, do you see this is a new reality? mohammed: i can see why it is

appealing and why there is talk about it, just as i can see why people are talking about oil producers coming together and limiting production, but in today's world, it would be very difficult for either of these things to materialize. there will be talked because it is in everyone's interest to collaborate. but, domestic priorities are such that i don't think he will get multilateral coordination. you will continue having a global system that solves a much lower level of growth and financial stability than it could otherwise if global coordination were more effective. vonnie: what if we wait a couple of years? we were talking about how the dollar is only insert the status. the foothills of this, the previous dollar increases happen going on for seven years. if it continues, do you see in two or three years time after china has moved, that there could be? >> if we continue to rely on the

currency market to reconcile the multi speed growth than amex of the global economy, and the divergent -- something will break. way tolar is not a good reconcile these things. already, we are seeing pressure in american markets. remember, a lot of market companies bollard in dollars but don't generate enough dollars. they also generate currency. the history of this is very clear. if the dollar moves too much, something breaks in the global economy. if you tell me that you are expecting the dollar to move another 10% or 20% over the next couple of years, i will come back and tell you something will break and it is going to be ugly. era which we are approaching, west central banks -- where central banks no longer suppress volatility, how do we make money? >> first, by losing money. that is the first important thing. the first thing you want -- you need the resilience to be able to navigate through the higher

volatility that is going to continue for a while. secondly, remember, volatility also means good names get crashed. at the height of volatility, investors will have many opportunities to pick up good names at over the depressed prices. thirdly, look at what i think is the most exciting potential. it is happening outside the common names. that is the ability to combine new content with existing platforms. it revolutionizes sectors. it disrupts in a major way. keep an eye on where new content is starting. mark: i have to interrupt you. thank you very much for joining us today.

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to your mobile with no interruptions. i've never felt so alive. make your business phone mobile with voice mobility. comcast business. built for business. vonnie: welcome back to bloomberg markets. i'm vonnie quinn. we just finishing the day. where our markets settling? mark: five days of the klein.

blame it on the jobs report, blame it on the increase in wages. to the believe that the fed will raise rates this year. maybe once, maybe twice. he says the march meeting is still live. consequently, stocks have fallen. there is the stock 600. it has been a week where we focus on earnings. what are the earnings that have pleased investors? today.tually felt a bigger than expected 52% in the fourth quarter. they did pledge to overhaul their investment by cutting jobs to free up capital. also, revenue from trading rose. most of its bigger competitors have not achieved that. they lost brown and i capacity. this is not a company that we focus on a lot, but is one of the big -- shares are up 6% by end of the trading. the biggest online takeaway marketplace. what it is doing is spreading its wings beyond its crowded domestic marketplace in the u.k..

95 million pounds buying online food distributors in spain and italy, brazil, and mexico, from a company called rocket internet to add to its present in those countries. one of the stocks that is rising today closing up by over 6%. vonnie: how does the share price react today? a surprise, by 5%. at one stage, we were down by 10.5%. it wasn't as bad as a credit been. -- it ishe company setting a stake in spanish. to rise up the slumping steel price for a billion. it will issue this or unveil this right issue to the tune of $3 billion. a big worry is the slumping steel price. china has been pushing this metal onto the market at record

levels. they fell by 20%. i know you continue to peru's through the jobs report, and you have been looking at the manufacturing jobs. >> so many fascinating subcomponents. i am watching one of the fascinating elements. jobs rose 29000 and construction rose 18,000. decembers numbers were -- rose in those categories, too. , maybe, but in the context of concerns over manufacturing recession, there is some truth that in the deteriorating -- this is one little encouraging find that the u.s. might still avoid that manufacturing fate today. quick check on u.s. markets. the dow jones industrial average continuing its dissent down 1.2%, 195 points. the s&p 500 is deteriorating

said, we finished with the major art -- averages in the red in london. the dollar index is higher, up .6%. crude, 3446 a barrel. mark: shares are being powered by jump. the earnings report that shows you a few seconds ago, fourth-quarter profit, dropping 52%. the lender rates -- raise dividends to the highest in eight years. they pledged to cut costs. free up capital. spoke to thewe banks cfo. she joins us now from paris. it has been a pretty positive reaction today from shareholders, hasn't it? >> it is on the stock today. at the market close, it is not as good as it was earlier today at some point during the day. the stock was gaining more than 3%. investors seem to be liking the story as the cid, the civ

revenues and bnp, other banks that have already reported. we are seeing civ revenues growing more than a percent at bnp when they actually shrunk with other banks or deutsche bank, as you can see, and this graphic. of course, bnp has this new plan as the investment blank -- banks are planning to reduce their assets by 20 billion euros. cut costs by as much as one billion euros. , why this new transformation plan was necessary? >> we have adapted in the past, but there is some headwind, particularly around regulation. it is not yet clear how they were fall, when they will fall, but we cannot wait. just like in 2012. while we basically embark saying

we today have good profitability, as i said, 18.6. --t we embark on is a plan to improve this by eight points. those relievers, we require them focus, improve, grow. >> the goal of this cost-cutting plan is to boost capital levels. they are planning to boost their income ratio by eight points. should generate 2 billion euros of extra revenue. i did ask the cfo whether the consequence of this will be cuts and cuts of the bonus pool, but he told me it is too early to tell at this stage. you look at the reasons of growth, part of that growth is stemming from market shares. because some of our other banks have retracted out of some activities and we have -- an some of their,

activities, in particular, around cash management. we were the referral bank. 900 clients stemming from the situation. thing, there has been a helping of, grabbing market shares from other european banks that have attracted from some activities such as rbs. at the moment, according to the bloomberg desk, trading at .iscount compared to european we will have to see how they deliver these new plans. bnp couldtold me that be trading at a tangible boot value equivalent to 60 euros per share. we're not quite there yet. mark: thank you for joining us. she spoke to the bnp cfo a little earlier. let's get back to the u.s. jobs report for january. plenty of moving parts in a

report. they make things tricky for the said if they figure -- while they figure out that they should hike again. of thee -- president peterson institute for economic spirit also former member of the monetary committee of the bank of england. we'll get back to them in a moment. first, adam, tell us what you made of this jobs report. among others saying you can make anything you wanted out of it. >> it is obviously extremely important. everyone has been waiting to see if the job numbers would continue to support the view that most in the official sector head, that the underlying strength of the u.s. economy is pretty good. likeroblem is an number this indicates it may not be as strong as we thought it was. month-to-month variations and revisions, this isn't enough information yet. i think the fed and others are right to be looking at this number. i think we are going to have to watch for another month or two, unfortunately, to figure out what is really going on.

you measure market participants will react and can get back to fund the metals at some point soon? >> that is the right question. i got to do bloomberg and all those. the main theme was the route, the dev virgins between official sector, particularly central bank forecast, and the sense of panic and total depression and markets. that is true about china and the u.s. as much as any place. i don't know. at some point, if he panic goes on long enough, it creates its own -- its own logic. it's on reality. you can see that an earmarks by vice chair fisher that you guys covered a couple days ago. >> we just spoke to mohammed and he said the fed would want to get the second increase out of the way. he still says march is a live meeting. we are seeing a repricing, a more bullish market after the jobs report. what are you penciling and?

are you still thinking we will see rate hikes is here or not? >> i am in a different spot to my friend mohammed. now, until the last couple weeks, i had been thinking that march, combined probability of march and april was never 100% for a hike. that the markets were underpricing it. , induce the probability part because of the jobs report. if the jobs report gets revised for 200,000 and the next month comes in a 200,000 plus, then i think march and april remain live. is thethink that there exchange rate issue which governor rayner and others have rightfully praised. there is a question, how big an issue is that for the fed right away? if the chinese are continuing to stabilize their currency and the japanese do not go beyond what governor corroded it, the talk down currency, the pressure may

ease off. again, this is production, not recommendation. as production, i think march and april are still live, but i would put a lower probability on it then mohammed does. mark: do you think kuroda is done? we look at the reaction, it has actually risen since last friday. no doubt, he will be happy with that. surely, he is not done. >> probably not. you are absently right. i think he and everybody should learn a lesson from that. he made it sound like the goal was the exchange rate and the fact that they went from announcing one week we're not going to do negative rates to consciously surprising the market next week. i think it was a tactical error. a huge factor of what they and their regime have done. it was a tactical error in the fact that the young when up anyway is good proof why you don't try to day to day pop if you are a central banker, to a manage -- to manage the exchange

rate. you have a good the fundamental's record i think they may indeed do more. it may be on the quantitative easing side and the purchase of assets. non-jgb assets. mark: good i quickly squeeze -- i'm going to be in trouble, but it is worth it. we have to hear your view on the bank of england. we have the quarterly inflation report yesterday. it is 9-0 now you will be aware. we have that's on the bank of england's possibly hiking rates this year. next year. even the year after. are you in the 2016, 2017, 2018 cap or are you in the cap saying they could actually be a cut? the camp that says 17 and not a cut, but i wouldn't rule out a cut. at this point, the bank of england, they may too many statements from the mpc.

have askedg to number of hikes. we are going to do it time-dependent. the world is an uncertain place and you don't want to create additional uncertainty. talk about the economy, know what you're doing. the odds of needing a cut from the bank of england are dependent on the combination of what happens to sterling and what happens to the u.s. and euro area. i think there is going to be biased against having a cut, partly because the labor market in the u.k. is still pretty good although i agree that i don't see any wage inflation. also, partly because in the run-up to brexit, the referendum we are having potentially as soon as june, nobody is going to want to weaken the sterling unduly. i think they are on hold for most of 2016 and they could cut, but it will be very obvious why. it will be driven by outside factors if they do. marc collin grady speak to you. thank you for telling us about the fed, the boj, and the boe. thank you so much.

mark, but get a check on markets in the u.s.. abigail doolittle has more from the nasdaq in downtown manhattan. abigail: we are looking at a big selloff. one that is leading and outpacing the others averages. this is for two reasons. we have a lot of weakness in biotech. we have big overweighting to big tex, cymer to all year, these names are down significantly. we are looking at amazon, apple, facebook, all down in sympathy with linkedin. plus, yesterday, cornerstone macro was out yesterday saying the momentum stock level -- stock bubble makeup. only look at amazon and netflix, amazon is down 25% from its record peak as is netflix. you almost have to wonder if that is a telework the comfort tech. switching to health care, another stock plunging. athena health care. care services company. shares are down after their fourth-quarter revenue missed. stock is trading at a huge premium.

243% premium. 25% short interest. all of this is bearish money and suggests the stock may drop to the bottom of its range. vonnie: thank you so much good let's check in on first word news. courtney has more from the news desk. british prime minister david cameron has overcome a key obstacle in his quest to get a new deal on membership in the eu. , her meeting with cameron says he is satisfied with the proposal put forward this week. polls make up the biggest share of eu migrant workers in the u.k.. reports from syria today say government troops are close to a victory that could tip the civil war in their favor. says reports sort test running the country's largest city. refugees are fleeing into turkey. here in manhattan, one person was killed and two others injured when a crane collapsed. it happened in the city of trebek.

the crane landed across several parked cars, smashing the roots. an explosive force of a volcano was captured on video. the rough should happen overnight in southern japan. the country has more than 100 volcanoes. the option to years ago killed 67 people. -- the a russian two years ago. -- the eruption. i'm courtney donohoe, mark? , volkswagenahead announcing earlier they are delaying earnings because they need more time to determine the full financial fallout from the emissions scandal. more on that next.

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mark: live from london and new york, this is the european close. volkswagen is delaying its financial results for 2015. the auto giant needing time to digest the financial fallout's of the diesel emissions scandal. benedict, to bloomberg's managing editor for global business. breakdown the implications of this announcement for volkswagen. >> for anyone who thought volkswagen was through with the today, the company said they would delay not only their financial results for last year, but also, the agm. one was scheduled for later this month. the signal this sends to the the company is not clear where it stands financially at this point. basically, it's financial

calendar is in disarray. there are too many things out there that they don't know at this point. related to the date -- diesel emissions scandal. they don't know what the recall will cost. what form even know the recall will take. they don't know what the fines will be. all of this is a large element of uncertainty that is still hovering over the company which is why they said today we won't have something that is rocksolid by the end of this month which is what we would need in order to have a full euro account certified. if we can do that, we also cannot do the agm. it seems you are darned if you do and don if you don't. yesterday, they got in trouble for not announcing. today

to get their has house in order financially. that is what they don't have at this point. they have taken an unusual step. it dozen only happen with a company the side. you would imagine a company with a massive accounting department would have the means to look through its account and figure out where it stands. at this point, it gives us a -- the levelhuge of uncertainty over the company at the moment. we know the u.s. is far from clear in terms of what the fallout will be. inther it will be billions fines. the recall is unsettled at this point. basically, they just pulled this one quickly today and said we just don't know at this point. obviously, the kind of sentiment that investors don't like, where they don't know what is happening, we don't have a new date for the convocation of these things. it could be days, weeks until we find out more. thank you so much.

we will keep you up-to-date. president obama in the meantime will deliver a statement on a statement on the jobs report at 12:30 eastern. we will cover it here live on bloomberg tv. i have been danced -- watching dancing with the stars and i'm still not ready. >> it is your big debut. which has fared better, european buyback stocks or dividend stocks? i will have a chart that answers that question next.

what is it that federal reserve officials are worried about? inflation. markets don't see any inflation. or do they? we are looking at corinth laois and readings for the four big areas of the world. as you can see, they all have one thing in common. the line is going up. we are seeing increases in core inflation. what we have seen over the last couple of months is big drops in energy prices. take that out, food prices are rising in most of these areas. airline fares, cars, all kinds of things. closing, too. you're seeing inflation pressures. if we see is stabilization in oil prices, you are likely to see a lot more inflation pressure going up in japan.

the euro zone, and look at where the u.s. is. not only do i have more colors on my chart, i have a real threat to the economy overall. vonnie: the only thing that chart is missing his reggae music. mark: in the u.s. corporate buybacks are pretty much in everyday thing. in europe, shareholders addition i like dividend stocks. they are safer. all that could be changing says jpmorgan. check out this stock. 2014-2016. i have normalized it at 100 as we normally do. what it does is show companies that are buying back their own stocks the white line. they are outperforming those companies with the best dividend ratio. the orange line. by the most since jpmorgan index started these indices in 2013. interestingly, the buyback moret last year was 17% than double the gain of europe's index.

indexstainable dividends rose 3%. it is down almost twice as much as that of the buybacks in 2016. among the stocks reaping the benefits, a xml, they have all outlined plans to buy back their shares in 2016. jpmorgan says these types of companies still very rare in europe, do remain a bold case regardless of what happens to global growth. i think our global audience is the winner today. vonnie: color is a very important -- mickey is the winner today, i am afraid. [applause] marquardt to do a little better next time. thank you for continuing to watch market day on bloomberg television. we live in a pick and choose world.

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alix: from bloomberg world headquarters in new york, good afternoon . scarlet: i am scarlet fu. alix: i'm alix steel. around $30 they'll could did anyone predict is volatile market? scarlet: president obama will adjust the state of hiring later this hour. alix: who do you want to win the super bowl? portfolio could depend on the outcome. scarlet: we went to head over to the market desk where julie hyman is tracking a selloff of stock. julie: it's been selling since we got the jobs report. stocks settled on a more declining tempted the nasdaq has been