london or the rest of this hour. mark, and a few hours, president obama will release is 2017 i just. $4 trillion. we will bring those headlines and a. first, let's talk about european shares. stocks sharing for a seventh straight day. that is the story. the european close starts right now. betty: we will get back to mark martin in a moment, but breaking news right now. president obama officially releasing his $4 trillion budget line for fiscal 2017. joining us now from washington, bloomberg's angela who covers the white house. i'm looking to the headlines right now. give us the big numbers first. angela: $4.1 trillion budget which is about what we expected. it is not a surprise. outwhite house as ruled

modes of its big initiative that attacked her by seeing the bunch today, we see things coming out. one of them is how focused the president is on climate change. he really wants this to be part of his legacy, of his final year in the white house. this budget really takes a crack at trying to address climate change, both on the policy side, as well as on the revenue side by imposing a $10 barrel tax on oil. there is also some surprises in terms of how rosie the economic assumptions are. the white house is assuming that the unemployment rate in the u.s. won't go below 5%. while we are at 4.9% right now, that is a pretty rosy assumption. it is a little surprising to see how much of the budget is pegged on that area finally, there is an assumption of a trillion more dollars being raised over the next decade from taxes. that is a big number, something of the president is unlikely to actually achieved. pretty much everyone is

saying the whole budget is completely dead. is there anything that could be adopted by any means? angela: certainly. it is the final budget for our president who is a lame-duck. that being said, there are things that will actually happen. for one thing, keep in mind that most of the budget is already set. most of the spending, so-called mandatory spending. its functions and the government happen no matter what. things like social security, medicare. those things happen regardless of what obama proposes. there are also things that the presidency sees potential for common ground on with republicans. he met with republican leaders of the house and senate with the white house. among other things, they discussed child are the -- child poverty, the heroin epidemic, the so-called cancer moonshot spending being led by vice president biden. those are things were the white

house hopes they will be able to work with republicans intend -- congress this year to get done. >> congress will not hold any hearings on that. they won't follow the budget director to talk about this. is that unusual? >> it is. republicans in both chambers last week announced they would not be inviting the omb director, shaun donovan, to come to capitol hill and testify about the president's budget. that is very unusual. as you can imagine, democrats are upset about it. democraticudget leader today sent a letter to the committee's chairman asking that he reconsider and they pointed out that the omb director has headed to capitol hill to testify about the budget every year since 1975. betty: thank you so much, angela. newsng us on breaking president obama revealing his 2017 fiscal budget. london, mark,n to take us through the declines we have seen led by the banks in europe.

autos, basic resources. for a seventh consecutive day, seven days of the climb to the longest losing streak since october, 2014. 2014 is below for today. at its lowest level since october 2014. this is the biggest corporate story of the day. at one stage today, this is a two day char, deutsche bank shares were up by 5% after declining on .5% yesterday. down over the two days by 13%. those gains didn't last despite deutsche bank reassuring investors. it does have cigna -- sufficient funds to pay on its riskiest that. default swaps arriving for an a day. of bothme to the junior doubled in the last three weeks. other banks are declining today. swedish mortgage lender.

look at this. down by 6.3%. the biggest the client and almost two years. its chief executive after seven years in charge, the board said it is right for a change in leadership. i will tell you one thing. since he to -- took the home in march 2009, check this out. 1000%.have soared by the european financial industry according to bloomberg in that time has risen by 30%. his shares rocket in the last six years. bankshares certainly are rocketing today. betty: neither are greek stocks. pumping 8%, any relief at all today? said, a percent decline yesterday, we fell to the lowest level since 1990 yesterday. we have on to the lowest level since 1989 today. in the last six days, the afc has fallen by 20%.

i want to show you an index within the afc. this is the aphids banks index. this is the gain of the big banks and greece. this tells you everything you need to know about the greek banking industry. since the highs and 2007, this index has fallen by 99 .97%. was worth $83 billion. right now, it is worth $5 billion. talk about destruction of value. quite incredible. betty: it is. flat lining toward the most recent moment. think so much. mark. we will be back with you in a moment. i want to get into the trade in the u.s.. 90 minutes into the session. julie hyman has marked the market desk. that little attempt at a recovery that we saw a little earlier in the session read all three major averages are now turning lower here. indeed infected in part by what

is going on in europe with the banks. look at the bloomberg for the imap here to look at what sectors are on the move and what is weighing on things are now. telecom down the most. it is not that heavily weighted. energy financials, consumer discretionary that are causing the biggest declines today. shares were lower, even when oil prices were higher. now, oil prices have given up the gains as you look at where oil is trading right now. we are seeing not a big decline, but none the less, giving up those gains that we saw earlier. we are seeing the big stick up once again. vix pick upeing the again. thes not just volatility in united states. the get bloomberg once again. we are looking at the move index. bank of america maryland market risk index. we are seeing that here the bottom chart is the msci global index. the world index. it is nearing a bear market.

nearing astocks are bear market. we continue to see volatility climb. these are a couple expressions of the jitters that we are seeing among market participants. betty: it is taking a toll on financials. mark: you mentioned the have and we got a while ago. julie: bloomberg news learning that obs is going to be suspending a salary -- freezing salaries of its investment bank until the second quarter. and it is going to revisit compensation per a lot of banks in europe have been doing a. deutsche bank, as we have been talking about, those shares declining. these are u.s. shares that are now at a record low. interestingly, not in the banks but within the financial industry, real estate investment trusts that own health care facilities are declining today after hcp came out with a forecast for its funds and operations for this year. it is dragging down some of its competitors, as well. julie hyman at the markets desk. courtney donohoe has more from our news desk.

courtney: at least 90 were killed and another 150 injured. ice in theon took state of bavaria. it is in a remote, wooded area making rescue efforts difficult. three hours after the crash, there were still people trapped in the wreckage. nato is considering a naval mission in the mediterranean to monitor refugee traffic. the alliance's minister will discuss a proposal this week. a new were -- a new government offensive in syria has driven thousands of refugees toward turkey. a new report says that more than one million syrians are trapped in areas under siege. it is a challenge to the united nations. the yuan has issued a much lower estimates and has been accused of downplaying the crisis in syria. in taiwan, police and -- arrested the builder of a high-rise apartment complex that collapsed in the earthquake over

the weekend. 38 body seven recovered from the buildings wreckage. more than 100 or missing. in hong kong, lunar new year's celebrations turned violent. police battled protesters in the crack -- clash over illegal food stalls. -- riotersew bricks threw bricks, 90 people were injured and 54 people were arrested. hour-by-hour 2400 journalists and 150 euros around world, courtney donohoe. betty: stocks are fluctuating with investors seeking state havens. we will be right back on the european close. much more.

♪ london and new

york, this is the european close. i'm mark martin with betty liu. let's get back to the markets. european stocks falling for the seventh consecutive day. we have a selloff in european bonds. hans, stocks, it is all connected. what is guest says -- ofng to end this period heightened financial market turbulence that we seem to be in the midst of in 2016? >> the answer is more policy action area all eyes will yet again be on the ecb. especially going into their next meeting on march 10. in terms of what policy actions could help us regain the confidence, market confidence in the banking sector, in particular, it will be more measures to boost the bank capital base or indeed boost investor confidence in the banking sector.

mark: meanwhile, the euro continues in winning balance. it has risen 10 of the last 12 days against the dollar. it is up roughly 4% in that time. is drahgi scratching his head right now or will we soon see a decline in the euro? we are seeing is not doing a lot of what president draghi has tried and achieved in the last three years. the latest moves in the stock make it -- market are risking the health of the lending challenge -- channel in the eurozone, quite important for the growth outlook in the eurozone. the next measure from the ecb -- i'm not sure europe features that prominently anymore. it is the health of the banks and and storing -- restoring investor confidence in the lending channels. i wouldn't be surprised if the to announce more measures directly and at boosting the capital base of

when it comes to abs purchases, but also measures to expanding corporate bonds or securities more directly linked to the capital base of those banks. euro, thed to the latest appreciation is linked to what we are dealing with at the moment for part of the story is the fact that foreign investors seeing the euro investments collapsing in value are having to buy back their short euro hedges. they were buying italy, spain. all of a sudden, investments no longer worth what they were, euro exposure is falling. they don't need to hedge as much. the more pervasive impact here thenvestors comparing current episode to what happened in 2012. dark days of the eurozone debt crisis were banks were repatriating euros from abroad. actual losses related to the crisis. investors are playing a replay

of that particular scenario. --olutely, the expectation the expectation is the weaker the dojo bank, the stronger the euro so investors donate cash to cover the losses. betty: it doesn't feel like the u.s. is hitting any crisis. if you look at how fed fund futures are trading right now, nobody, 0% expect any rate hikes in march. that is according to if you look inside right now. 0% in march, 4% in april. a gets a high balance and 11% by the end of this year for any kind of rate hike. talk about striking a delicate balance. what do you think janet yellen is going to have to say and get across when she speak to congress this week? lentin: given that the markets have been so aggressively pushing back rate hike expectations, any doggedness by the chair tomorrow

will have less of an impact overall in terms of losing their rate advantage. at the same time, potentially more dovish language in the sense that language that takes into account the latest tightening of global financial conditions could be seen overall as a supportive and dollar positive. the irony of all of that is the best outcome for the dollar going into tomorrow's testimony would be a dovish chair rather than hawkish chair. in particular, i think you mentioned the balance that yellen needs to strike. on the one hand, she has to recognize, and i think she will very much do so the back at the is leading selloff to unwarranted tightening in the u.s. financial conditions. at the same time, i don't think that yellen will want to feel market fears by sounding too cautious on the u.s. recovery in particular. in this regard, i would like to highlight that the latest labor market data certainly is supporting the view that the

u.s. recovery is becoming more resilient with her -- further headwinds from abroad. betty: i hear you, but you were saying earlier it sounds like the dollar could rise whether the fed raises rates or not. i imagine has got to be the worry for the growth prospect and worrisome for the fed. valentin: in a way, i think the starting point is that the market is excessively dovish. on the whole, i think the central banks do have the tools to support the recovery. --hink they are putting in things into perspective going into the g-20 summit. finance ministers think we are expecting a more concerted effort to be announced in the form of more monetary stimulus to boost the recovery. against this background, yellen need not sound as dovish or worried as many are hoping.

with that in mind, a balanced statement where you also take into account the unwarranted tightening of financial conditions will end up having a statement which strikes both ways. on the one hand, yes, they see the data is weaker. they are seeing financial conditions that tighten significantly, but no, they have no intention to cut rates anytime soon. rather they are assessing the data, getting ready to act. if anything, that is the message. it is interesting you say central banks of the tools to his recovery. more and more experts are coming out and saying they are running out of tools. what sort of recovery has it been since 2008? valenin: there are risks to recovery still out there. if anything, starting with the fed, the fed could sound more dovish as they will be tomorrow. that could be supportive. at the same time, i think the edb is not out of options. measures to boost the bank

capital will be paramount going into the march meeting. if anything, further measures by the boj on top of the already unsuccessful negative rates cannot be excluded. think one potential measure there would be for them to start buying stocks directly. if anything, i think banks are not out of the options yet. from that point of view, ruling out or dismissing any supports from central banks is premature. mark: banks haven't run out of ammo. still ahead on bloomberg television, lots to come. we will big into the big bang story in europe today. germany's biggish lender crashing. did it see a slight top after those exclusive comments from germany's finance minister? >> do you have any concerns? >> i don't have concerns on deutsche bank.

♪ from bloomberg's world headquarters in midtown manhattan and london, you are watching the european close. i'm betty liu with mark barton. europe, deutsche bank is grabbing the headlines today after co-ceo tried to reenter investors saying the company is "rocksolid." that is not the only bank that has been making waves. >> the sector at i whole has gone to its lowest level since 2012. italian blunders leading today's a climb. there is the stock 600 banks index or 4% lower today. she joins us now from milan. thank you for joining us. why is there so much fear surrounding the european banking industry right now? the outlook isn't improving. the outlook is worsening as the global economic slowdown appears and whatting closer

that leads to is a very tough environment for the bread-and-butter of margins on lending. quantitative easing has basically squeeze those margins and banks are all going after the same types of businesses. they are all going after management businesses. markets fall, investors move on to cash. that means there is less money to be made in management. it is basically a self the filling prophecy to some extent. profit outlook worsening for an industry that has been battling to revive profits since the financial crisis. mark: has deutsche bank alleviating concerns that it could pay off its that's. say yes,age, you can

but it is trading lower by 4% say you have to say no? >> good question. i think the company ceo, the cfo, the company itself has put out a statement. all pointing in the same direction, the situation is in hand. there is enough of a buffer to -- what the market -- what the market is concerned about is that as these capital buffers move in on the equity side, the company may have to cap investors for more funds and hence, we see in the stock market, a decline. while coupon payments may be under control, there is concern that equity buffers are still rather thin and the profit outlook, as i was saying earlier , really eating into the buffers. betty: really quickly, it seems like you are seeing a lot of belt-tightening now. ubs is said to be freezing their investor -- investment banker salaries. what else might we see of these banks? >> many have hiring these as if

they are not cutting jobs are range. -- all right. pay freezes. bonuses went down a lot. right across the board, you are looking at banks effectively figuring out again where they get a, workaday be boosting profit, which businesses should they be staying in and viewing are constantly as the markets evolve. mark, a quick last peak before the markets close. about four minutes away from the european close. check out the major equity equity index today. its seventh consecutive daily consign -- decline. i will leave you with the bond market.

♪

mark: this is the european close. i'm mark arden with eddie wrapping up the day in london. those are the figures. common have a look at the stoxx 600. just settling for the day. down by 1.6%. seventh day of decline for the longest losing streak since october 2014. the stock 600 is down to its october 2014.ince it seems as if those words that were intended to soothe investors didn't have the required affect. deutsche bank earlier tried to reassure investors it has sufficient funds to pay coupons on his riskiest debt. initially, shares rose by 5%. as you can see at the end of the day, over the two day period, they will fall by 13.5%. credit default swaps -- swaps,

insurance, this is a really important chart. money is moving into the core european bond market. it is moving out of the periphery bond market which is leading some to compare today to what happened this month, to what happened at the height of the european debt crisis in the 12. the spread is nowhere near the levels we were back in 2012. it is interesting, the spread, the difference in yield between the germans and the italian 10 year at the highest since last year. something worth keeping an eye on. keep an eye on those periphery bond markets. betty: we are definitely keeping an eye on deutsche bank. not only them, the other european banks are where you are just talking to. feeling the loss of its ceo. mark: it certainly is. look at that. that tells you everything you need to know about what investors think. it has been seven years in charge. the boards at the time were change in leadership.

the bank is looking for a permanent replacement. shares are down by 6% area the biggest fall in almost two years. this is a great step. since he took the helm in 2009, shares have soared by 1000%. compare that to the bloomberg index of european financials which is up 30%. you could say the bank has done quite an incredible job. look at the shares under mr. michael wolff. 1000% in the space of six and a half years. many banks were reclining for those gains. when you look at the selloff we have seen in the european banking industry and 2016. betty: those returns are hard to find. back in the u.s., as you know, janet yellen is going to have to proceed with caution tomorrow when the fed chair addresses lawmakers in washington. she will have to perform a delicate balancing act between sounding confident and technology and acknowledging increased risk from abroad with central banks around the world heading into negative territory.

is she going to have to light in her hand on interest rates? london, simonm kennedy, bloomberg's chief economic national correspondent. it seems like as we were talking about earlier, if you look at fed fund futures, traders don't expect any kind of move at all this year. they also don't expect a cut, either. collects once you had liftoff from the fed in december, the chance of them pulling it back are increasingly hard. the market is not quite there he appeared are challenging nephew from the fed in december. -- challenging that view from the fed this december. betty: we are going up and down and up and down so far in our equity changing session. we are all looking for what ceos are saying about the market, what they are feeling about the economy. lloyd was speaking at a form from goldman sachs. this is what he said. >> we are not standing around holding hands singing could buy out to get better.

i think the market will get better. i don't think low global growth, zero negative interest rates and the total disk population of emerging markets is the normal state. is the fed chair going to have to be careful not to be to help -- a steve the markets get better? >> she has a tight rope to work. -- to walk. in her testimony tomorrow, she has to leave a way through worries about markets and issues abroad such as china on the one hand on the other, signs that the domestic economy, if it is not superstrong, then it is finding stabilization. beginning to pick up, perhaps again. we saw the jobs numbers last week suggesting the labor market for one area of the economy is in solid straits. we were just told central

banks can still shotgun all. you have cowritten a piece just about that. you say federal banks could shock, but they are losing the ability to all. >> up slowly. if you look at the diminishing effects of central banks, bank has introduced a stimulus or said they would introduce more stimulus. banks, that had the they had in previous cycles. obviously, there is more central banks can do. they can cut rates lower, negative interest rates. that is the theme of the moment. they can make longer-term commitments to keeping monetary policy easy. there are lots of things at central banks can do. it is whether what they can do is as it once was a markets. our discussions and comparisons between now and the european debt crisis of 2012, when we showed you the spread between the german and italian yields, highest since july,

nowhere near the levels of 2012, are we premature even mentioning 2012 in the same breath as 2016 or not? simon: at the moment, memories are being stirred of that period of great banks collapsing in the stock markets. portuguese yields are rising. what i think is different from then versusonomy now is back then, you had the european debt crisis. everyone was focused on that. will your fold? will they get build out -- bailed out? what you see now is a series of landmines. is china slowing? did the fed make a mistake? what about geopolitics and the oil price? a series of issues that the market is trying to grapple with. they are for the one world problem of europe heading toward the troubled waters. now they don't know what to look at each morning. when you add those small landmines up, you get markets reason to worry.

what is the first bear market since the financial crisis. we are almost on the verge of this, as you say, this bear market in global markets. i will give you guys shock and all. what is the fed one negative on rates, is that even possible? simon: it is debatable whether they could. there was a paper written and published by the new york fed in recent days questioning whether they would have the legal ability to. certainly, it is in keeping with the no limits monetary policy that mario draghi talked about, that, rhoda talked about in japan. the fed all along the way has led in its response. awaye still right away from negative rate in the u.s.. rates have gone up. it was never at zero, it is around zero. plenty of ammunition left. the more central banks do negative rates elsewhere, the

better the chances are in the u.s. third stanley fischer talking about the other week about how some of the problems we thought might be happening in , denmark, switzerland, when they first moved into a territory having come about. transitional effects on others. no currency runs, bank runs, boarding of cash, no attack on bank profits or attempts by banks to pass on the costs to customers. longer the track record bills in europe, japan, and elsewhere, more room for the fed. we're quite a way for way from that at the moment. coming up tomorrow, big week on bloomberg markets. live coverage of the fed chair janet yellen's testimony before the house financial services committee. that is tomorrow before the senate banking committee on thursday starting both days. telik clock a.m. eastern time, right here, bloomberg television and bloomberg radio. what a couple of days ahead of us. betty: indeed. we will be all over those.

check let's get a quick on how stocks are trading in the u.s., as you have mentioned, it has been up and down, up and down all morning long. abigail doolittle has more live from the nasdaq on the tech shares. having l: we are certainly looking at that choppy trade at the nasdaq between red and green. the index open down and then it was up more than half a percent. now we are fluctuating around even. by strength is being given recovery and tacking putting microsoft, facebook, alphabet, and netflix dragging, however. we have a big biotech name down after the company missed fourth order earnings and sales estimates on a combination of rising costs and slowing growth in the company's key my drug. that's long as relative area for 2016, the company expects it to grow by 20%. compared to 54% in 2015. it is a reset of investor expectations. this shows and the stock that is down significantly over the last

six months without any big catalysts on a near-term horizon. this stock may have to drop more in order for investors to be re-attracted to the story of valuation. thank you, have a go. abigail nasdaq back to europe, the possibility of the u.k. leaving the european euro and union -- european union has emerged as a major theme in 2016. the possibility of brexit weoming a hot topic -- mark: will have to see. volatility showing concerned about referendum, strategist forecasting the currency. joining us now, bloomberg intelligence chief economist and lead author on the brexit special report recently published on the bloomberg and bloomberg.com. thank you for joining us. the beast tool. that jumped out at me when i read your 11 page brilliant report. i recommend our viewers and readers read and watch it.

tell us about this beast 20. it matters, doesn't it? model called the beast. it tells you how shocks transmitted across countries. they have the u.k., u.k., u.s., eurozone. we have run a few shocks through it. shockrrency shock, credit , a confidence shot. we run into the system advocate what sort of ethics you have on the bank of england's behavior, what you get on inflation, on gdp. mark: what are the early results of this beast model? what are the impacts on growth? we see currency move sharply. we penciled in 10%, at the lower end of some analyst estimates. we set it up and essential natural assumption. that pushes inflation up a lot. gdp growth coming off, bank growth beginning to get cut rather than raised. betty: ok, jamie, what exactly

is going to be the impact? as you gain it out, the impact on various sectors, on the currency, game that out for us. jamie: the main feeling is that in britain, at least, you will feel a bit of a hit to your income. spending will be lower, households will be worse off. because it is a global market -- model, when you look at the u.s. in the eurozone, the effect is quite a bit smaller because the u.k. is only a small share traits for the u.s. and euro zone. what it might do is add a little pressure to the ecb to stimulate further should that happen. betty: is there any chance of a deal soon? jamie: we are a fever pitch in the u.k.. negotiations are ongoing. we had a draft set of proposals which don't look set to convince the bestat that is

thing to do. the polls are bouncing all over the place. we don't know whether we can trust them because they have two bad performances in the general election and the scottish referendum. really, people -- there is an elevated sense of uncertainty in the u.k.. betty: jamie murray with bloomberg intelligence on that report. fascinating. a deep report on a possible brexit in the u.k.. let's check in on bloomberg first word news. courtney donohoe has more from the news desk. courtney: taking a back to the election in the united states, new hampshire, presidential candidates are still looking for those last few votes in the nation's first primary. democrat hillary clinton was outside a polling station in manchester looking for last-minute support. polls indicate she will probably lose to bernie sanders. meanwhile for the republicans, donald trump is inspected to win big. there may be a real fight for second place between ted cruz, marco rubio, john kasich, and jeb bush. later today on bloomberg, we

will have a two hour new hampshire primary special on with all due respect :00 p.m. eastern time. as we have in reporting president obama releasing the $4 trillion budget. it is still with items a republican majority in congress is certain to reject such as the new tax on oil and billions to give summer jobs to out of work use. still, the presence budget may influence the race between bernie sanders and hillary clinton challenge to embrace or reject mr. obama's policies. congress wants to know how the richest u.s. colleges are spending their money. two congressional committees have e-mailed 56 private schools with endowments of more than a billion dollars. lawmakers are evaluating policies that permit tax-free investment earnings for schools and tax reductions for donors. global news 24 hours of a powered by a 2100 journalists and more than 150 news bureaus from around the world. courtney donohoe. coming up next, what is

the difference between stock 600 -- europeanropean financial credit risks? i will have a chart that shows the correlation. that is coming up. stay with us. [inaudible]

♪ time for our global battle of the charts. i have missed to this. where we take a look at the most telling chart of the day and what they mean for investors. charts by of these writing the function featured at the bottom of your screen. kicking things off, joe weisenthal. of the bigw one homes for the fed is while they are doing good on the labor side they are not, doing so good on the inflation side. this morning, the and a five --

the nfib small business optimism survey. it shows the problem exactly. the number of small businesses with job openings are on the rise. people are hiring and try to fill jobs. prices, not so much. the number of small businesses raising prices, that has been plunging lately. no pricing power. there is the fed's dilemma in a nutshell from the survey this morning. labor looking fine, inflation, pricing power, not so good. betty: for those lines coming back together? one day, the fed hopes that will go up, but having going up for a wild right now, it is the opposite direction. betty: does the labor market. what do you have? let's start with the stock 600 bank index. since the beginning of 2016, this index, the white line has

sunk by 26%. an index of 47 banks. the worst industry group on the stock 600. today, it has fallen to the lowest level since august 2012. all but one of those banks has fallen. 44 of them have fallen by over 10%. greek and spanish banks are languishing at the bottom of the pond. some of the biggest lenders have lost a quarter of their value. barclays, the second index i want to show you is the cost of insuring banks and insurers debt. otherwise known as, wait for this mouthful, the financial index of credit default swaps. this is the orange line. today, interestingly, it has fallen for the first day after may, twost rise since thousand 12. a closed yesterday at the highest level since march, 2013. deutsche bank, it seems, has

dampened some of the risk right now. it has insured investors and employees. it has enough funds to serve at the risk yet. the biggest question out there is the volatility in european banks about to end? maybe not. expectations are for the swing in the stock 600 banks index over the next 13 days has risen to the highest level since august, 2012. it has been a miserable year for the banking industry in europe. misery all around and even in the u.s.. i know you touched on the same story in europe, european banks good i haven't seen joe in a while. i'm going to hand him the win today. congratulations. still ahead on the european close, we will tell you how to spend your wall street bonus, but not in cars or planes or expensive apartments.

this year, we are taking a different approach focusing on the so-called experience economy. how to spend that cash.

♪ betty: as you know, hedge funds are down, markets are uncertain. even high-end real estate seems to have the feared bloomberg puts out in annual spending guide each year. last year featured jet packs, a motorcycle. this year, they are taking a different approach, focusing on experiences rather than objects. all atbest experiences under $10,000. bonuses are shrugging on wall street. chris rouser is bloomberg's pursuit editor who joins us now to talk us through the highlights. experiences matter more this time around? >> a lot of people are thinking about spending the bonuses in

different ways. this is not the year of the splurge. for a lot of people, especially my house, experiences don't cost as much would have more value. betty: travel is high in the list? people, travel is the experience. you devote time to it which is not -- often your message since a resource. even if it doesn't cost a lot, you can make memories that last a lifetime. this year, with so much change in the world, there are places you can visit now. year, we focused on trips that challenge you, a spiritual journey in the mountains of peru, northern outdoor living school, a trip to the mounds of scandinavia, something where you challenge yourself. some of central asia's vegas. how about that? >> we included that on the list because it pushes your boundaries as a traveler and it is unlike anywhere that you have ever been. it makes you feel different as a person to even be there. it is stupendous, the architecture and geography.

we thought we would have a twist by putting it in there. >> i was quite impressed when i read this piece, whiskey, cynical traveler. all sorts of stuff. i got to the end, finally, i discovered somewhere that i have actually been to brosnan. that is for the film buff out there. i'm a huge film buff. i didn't go there because of game of thrones. it is a beautiful place, isn't it? it is amazing to see something that you watch on television that you feel attached to in real life until the real-life inspiration. that is why we included those locations. what if you are a materialistic person and you like cars and watches? >> say you are a car buff and you could spend $200,000 in a bentley or you can spend $20,000 on a bentley experience where you go and get to drive all of the cars in finland on an isolate, you on an isolate, you learn how to ice drive. luxury car brand set out these experiences for fans of the brand so you can try the other

things and you don't necessarily have to spend that money on the car. betty: how do i get an assignment like that? thank you. bloomberg editor of global luxury. you can read more about laundry a bloomberg pursuits, destination for the final things in life including travel watches, dining, and property. had to and i pursuit on the terminal. in the meantime, stocks are lower right now. we have been volatile all morning long, but we are solidly down on the dow. have a look at what happened to europe's main forces. we have on every civil they in your. the longest losing run since october, 2014. that bloomberg markets european close.

flex it is noon in new york. >> welcome to bloomberg markets. ♪

from bloomberg world headquarters in new york, good afternoon. what we ares watching at this hour. stocks struggle for election -- direction as stocks try to pull away from week markets. week oil is not helping. scarlett: in ending exclusive interview, the italian prime minister says there will be a turnaround. alix: deutsche bank says it insists it has the cash to pay off its riskiest bonds. it is not just the bank that is making investors nervous. is the bubble about to burst? we want to get to today's market activity. let's head to julie hyman who has been tracking the struggle for direction which seems to have taken a move to the downside. julie: it has. there was an attempted recovery as we got underway this morning and it has not helped. now, all three major averages are