africans migrate into europe. because we have an economic situation in africa that needs to be addressed by our leaders we talked about that is the stance of women see as dr let me that's very important to me let tell me how you feel about the possibility of people of parties gaining significant votes in the european elections because they almost exclusively campaign on the topic of migration yet because that is the thing that is affecting europe because that is a new trend all over the wall of nationalization. kountry is becoming more national counter is becoming more solve recognize doing since on their own ways and that is why you see that british ones who go out of europe you see a lot of other countless wanting to be annoyed that that has manifested also it being in the united states you can see the nationalization is spring going off and even africa you see a lot of elections have taken place under a government opposition opposition parties were taken over by governments because people need a new lease of li

for southern europe, for instance. but it's a problem that contributes to the trade deficit with the united states, which president trump so frequently points out. i would note, on this german trade surplus, the famous economist, there is no example in economic history, at least not since the beginning of trade statistics, that is since the beginning of the 19th century of a country of this size which has experienced a comparable level of trade surplus on a long-term basis. not even china or japan, which in most instances have not risen above 2 to 3% of gdp. now, the informal -- i think their informal eu rules suggest that trade surpluses are deficits of more than 3% of gdp should not be tolerated. why is it being tolerated in germany? it's a special irritant to president trump. so unfortunately, i think that the prospects for flexibility on the part of the eu is part of the trump/juncker dialogue. and i point especially to agriculture. since the president, mr. leinheiser, all noted that without some attention to agric

located in the heart of europe connected to the home. experience outstanding shopping and dining offers and try our services. biala gassed at frankfurt airport managed by from. german chancellor angela merkel has been in dublin for braggs at talks with her irish counterpart lee over a this comes nine days before britain could leave the european union with a deal which would endanger the open border between the republic of ireland and e.u. member and northern ireland which is part of the united kingdom. a proud member of the board until last month so if you want our legs russia's phone that the current employees truly want you have treated me interesting but we're not.

that is up to europe. but we might think about how we can work with our remaining providers we have in the united states and in europe to help them offer better packages. >> my name is pat malloy. i trade lawyer, former member of am a the china commission. i was interested, when secretary shriver mentioned, i was general counsel on the senate banking committee when we wrote the --cifiussif legislation. we put that in the 1998 trade bill. the assistant secretary said we need another round of reform. secondly, i never understood, is ifius at the commission level within the e.u., or other member state level? because i see that germany has done something. but it was never clear to me. it would be helpful to get an understanding of that point. >> thank you. nice to see you again. i think what i said is one round may not be sufficient. maybe i said we need a second round. >> one round of reform will not do it for us. that, as an- i hate official when your words are thrown back at you. [laughter] >> the union doe

many of them in defense of europe. two world wars and the cold war made it clear how important america is to the security of europe. and equally that peace and stainlt in europe is important -- stability in europe is important to the united states. our alliance has not lasted for 70 years out of a sense of nostalgia or sentiment. nato lasts because it is in the national interest of each and every one of our nations. one her we represent billion people. we're half of the world's economic might and half of the world's military might. when we stand together, we're stronger than any potential challenger, economically, politically, and militarily. we need this collective strength because we will face new threats and we have seen so many times before how difficult it is to predict the future. we were not able to predict the fall of the berlin wall, the 9/11 attacks, or the rise of isis, or russia's illegal annexation of crimea. since we can cannot foresee the not foresee the future we have to prepare for the unforeseen. we n

has come up with its own asia or europe connectivity package do you think that is your. board of the one belt one good initiative i would say that is. should but here we have to find channels to to combine these different plans etc because i would not agree totally with you but i would say that this rivalry understanding is just describing more than only economic rivals it is a way of how we are treating each other and that is a term from the cold war times and that means we are completing each other. to. one economically politically etc that i think is leading if you are looking into the global challenge into the wrong direction if for example one point four billion people in china want to live their way of. living or one point three million a billion in india and one more billion and other asian countries so what does it mean for resources what does it mean for the energy production what does it mean for the climate so yeah i think we have really obligation to find channels to cooperate and i would welcome that in europe participating in these different plans and we'll

europe is what we are seeing. not yet in germany. germany is quite heavily hit by automotive. 10% less growth compared to last year. 70% related to automotive, so that is still something that is out there though we are happy with our performance, which is better than the german market even. france is positive. we jumped up from -4% last italy, to growth and minus one in q4 of last year and now 1% growth. it seems to be stabilizing in europe. nejra: that sounds like good news. certainly, you saw positive growth in france and overall, you are seeing stabilization. what about the outlook? do you expect to see continuing stability or growth in these regions? jacques: let's settle for continuing stability. our revenue declining in europe somewhere in the second half of q2. may and june. we don't have any insight in those numbers yet. april looks like comparable to q1 and let's take it from there. it is a volatile market, tough to call. we are looking at it week by week now. jacques: i think i've turned this into a reli

this this goes across the pacific and now we're seeing it in europe. or in the you hang it where you are nani your head go ahead remy in new york go ahead. well i agree that you really see a shift here internationally with the with the new tribe administration used to have two options on the table you have the american option which is basically on the third equal level call democratic dearie the idea that by promoting free trade we're going to help you know population grew in terms of the economy push towards democracy and not go to war and basically that was the basic idea behind the european union the rise of the faculty the rise of free trade and therefore have moving away from nationalism and to listen and that was best embodied by the clinton administration and the obama administration that was pushing for more free trade agreements that you can actually create those in terms of the impact that he has on the quality but definitely the idea was to try to have a wall where you have absolute gain for everyone to work together and trade together with

and europe and. europe and the united states. in this case is much more the responsibility of united states i think if i can say they'd leaders you would decide in the. way that europe is becoming the worst united states. ask you one more question about values because it's very interesting to me you've been very supportive of president micron's call build a new european raney. would say that you have to kind of put your own house in order before embarking on such grandiose plans when it comes to values what do you make of. that wasn't in keeping with. the weather. in the middle class from my point of view big mistake of managing a measured decision about the taxation on them specifically asking about street action because when you have people that are breaking out destroying everything on the other hand also have the use of explosive grenades and. mains and kills people we are not seeing that even in authoritarian societies these. are not seen in the. at least ten fatalities and several thousand injured. and people losing eyes pe

for then, we have a europe which does not seclude itself, but a europe which says, made in europe is more than good industrial product. made in europe is human rights, individualfreedom, equality, democracy and a constitutional state. and that is what we want to enforce everywhere in the world. there are those who say that the existence of the european union is in danger now. you have got brexit, and although countries are not lining up to leave behind the uk, there is a strong force of nationalist, populist, euroskeptic parties here in germany, with the afd, we see it in italy, in denmark, pretty much across the european union. those parties are predicted to do very well in those european parliamentary elections now, at the end of may. does that make you worry about the future in europe? translation: it worries me because we are in a situation where we can observe that influence of different countries in the world are shifting. china is growing stronger, not only economically but also politically. the politics of the united states is changing. and if europe wants to play a future ro

is less interested in europe but in the same time as us provides a nuclear umbrella that protects europe and the us is less interested what we are going to do is that a replacement is there frankel british answer is a european answer and the sort of nuclear question is the germans because the germans participate in the nuclear deterrence was epilate planes which are too old and needs to be replaced so the new questions come in from all angles and particularly in germany it's a very easy unpleasant topic but we need to talk about it and that's going to be i'm afraid it's going to be a big mess as you ok let's talk about germany donald trump has repeatedly suggested that american allies above all germany are freeloaders and there are other nato members who believe that germany is not exactly what might be seen as a reliable partner let's just get a taste of the case for and against germany. germany is helping in mali with troops supporting the united nations mission in this west african trouble spot there training mali and security forces among other top. and in afghanistan with some twelv

have felt that their goal is to take over europe. it would appear to me that the generals seem to be holding our whole -- our positions quite well and that vladimir putin has backed off on his position. guest: i do think you're right. i don't believe russia wants to go to war with europe. i do think they want to try and extend their influence both in europe over the countries that were formally part of the soviet union. said any times that the loss of those countries was the greatest tragedy in russian history. i don't think we are at war with russia. we are in an ongoing struggle, certainly an intense competition but i don't think russia wants to have war. it is using other means, as we have seen all too starkly. they are doing that in spades in countries in central and eastern europe that are much more vulnerable than we are. ferment trying to unrest. they have been very active in extending their influence and reach by their intervention in syria which gives them an additional foothold in the middle east where they have a base in t

things will be crucial for europe's security and defense under thirty will already confront her opponents and fellow at the european council on foreign relations and believes that germany is risking its international credibility. dismal to realize well. let me begin with you nato of course styles itself is the most successful military alliance in history is it right to do so i think it is right to do so because nato is a deep the most successful military alliance and nato for the last seventy years has guaranteed peace within europe peace in the transatlantic relationship and in fact really is a big and very important part of the transatlantic relationship and it seems to me that sometimes when we talk about the military aspect we seem to forget that this is also just a corpse off the trance of the transatlantic relationship which as we all know at the moment you know has its major problems and various a seven decade success story maybe but the celebrations to mark the anniversary in washington have been described variously as restrained low key or even ugly what's the problem the problem

there are big structural issues with europe. if there is a reach for yield in europe, where do you go? you want to go into the periphery. i think the periphery spreads will continue to tighten. gershon: we tend to do with the extremes. there are idiosyncratic examples. italy, a lot of populism. the debt crisis. all of these economies are susceptible to the region in general. this will be a systematic component that loads -- that goes along with how the european economy goes. will be idiosyncratic components with how the individual countries work out there issues. victoria: you and i have spoken before when it comes to europe, how we feel there are a lot of things going on particular to the individual country. it is all about china or about global growth slowing down. you have -- it is not all about china or about global growth slowing down. you have protests in france. all of these things have to take a backseat before we see things get better. we did see services pmi get better in germany. france was solid. there are bits and p

they guard the very heart of europe. headquarters of nato's land, sea and air forces on the southern flank and base for the american sixth fleet. indomitable malta, historic british base, today headquarters for the naval forces of five nato countries. states, thenited supreme allied command atlantic, home of the u.s. navy, but also an international headquarters on u.s. soil, symbol of the new unity of the western world. and on the unconquerable island of britain, the channel command. the royal navy with its continental allies must keep open the vital supply ports of western europe. at the nato headquarters at northwood, nato forces are assisted in their task by the rural air force -- by the royal air force. the defense of western approaches to the british islands. ♪ nations joined the alliance, turkey and greece, recent storm centers of communist russian threats. ♪ and in 1955, the federal republic of germany joined nato. farewell, andd ridgeway succeeded him, and then adt, each man norst by his presence and his unif

across europe. but take. people off neo liberal economic perspective have been in power for quite some time everyone has to take responsibility in this very challenging time and of course there is a demand in our society due to the be good the normal that we are leaving and the fact that we just. economic and financial crisis yes we. are going much more coming back on the show at least six in the wood but we came out the without a measure of these two options in any case one issue when i am saying that the many of them only say no and they yes. the magic example. they can buy hold the. example. they say no for three they do not succeed. and you see that from one e r. or the. police and the. right wing parties are still despite. in power in italy in hungary in austria in poland there. in france it is expected that there are going to consolidate our presence in. the may elections. what is it in the policies of the. driving the support. i am asking you to be critical. because you are ultimately in charge of. ana

europe one straight but. this has to lead to a reciprocity that we are still struggling to achieve during in the months from now . european industries are increasingly falling under chinese control. of the. european enterprises need to get the same degree of access to the market as the chinese get in europe. china is a global player when it comes to digital infrastructure europeans have long been familiar with the dominance of chinese giants like who way. is china spying on europe. none of us is naive. china relations facing new challenges time and even a couple. you know hardball when you said you were looking for the closest possible relationship right here or should we disregard the spying of china should we disregard the human rights situation and just go for a very close partnership close partnership includes human rights as i would say but this includes also. concentrating on the question of how we can come cooperate and that means that we have to focus on the social issues on the economic issues on iss

americans have bases in europe. but there are also four countries in europe that have host based arrangement as they call it call it a nuclear sharing arrangements germany the netherlands belgium italy and possibly turkey so those countries are the ones who sort of serve a soto nuclear strike role where their aircraft would be equipped and handed over nuclear weapons in times of war. until just a few years ago all political parties in the german one is talk had been calling for the nuclear weapons to be removed. these nato fighter jets are on patrol over the baltic states their mission is to intercept any russian military aircraft that approach a nato air space without warning. a number of participants at the annual munich security conference are concerned about growing tensions between east and west. the conference chairman is professor wolfgang ischinger. india and fia yon's idea. since the ukraine crisis that is since two thousand and fourteen six years we've seen a massive increase in but say incidents. and fort

one billion of that is in europe. branches are you going to have to close in spain, and consequently, an estimate of the job cuts you might have to make at home in spain? jose: customers are changing their behavior. -- the relationship with the banks is changing and using less the branches and the more the digital channels. if you look at our numbers in the last 12 months, we grew our digital customers by 6.5 million, huge number. manus: what does that mean for the reduction, let's say, in branch space? adjusting ouren physical distribution network in all countries, especially in staying as consequence of the merger with banco popolare, we have been closing branches. we have been working with unions to look at the next phase of the restructuring. of that dialogue, out of those negotiations, we will state the figures but significantly fewer branches. manus: can i talk to you about your current capital rate earning? of full getting a hold ownership of the mexican business makes very good sense. what is -- has the respon

i think the fears in europe -- no one is going to say europe will be gangbusters in growth. countries like germany are much bigger exporters than the u.s. some of the consumer numbers are not consistent with going into recession. the idea will going to worldwide depression is overblown. jonathan: a few dynamics we will work our way through. let's start with united states and the idea that we are late cycle. victoria, i would love your insight into this. there are so many people who believe we are late cycle. when you ask them why, they will tell you it is because it has been going on for a long time. can you define late cycle by duration alone? victoria: no. it's like what you were saying a moment ago, it can go on for a much longer time. with the central banks where they are, the federal reserve on pause, you had india cut rates, you have a situation where things can continue for a longer time. there is no set timeline on how long this has to be as long as you have fiscal policy and monetary policy situated in a place where it can continue to boost that, i think you can kee

how europe can and is contributing in the us and china and has pointed out recent challenges to europe that makes europe stronger with the european union but when it comes to traditional centrist trade that has demonstrated and that we cannot be bypassed with those repercussions forever there are other issue areas they have not played such a big role of security issues of the chinese industrial policies. that are emerging to allow them to contribute in a way they have not seen before. and with that greater footprint and that division of labor has developed and european union and that is a division of labor is still seen as europe and the groupings would take action on common eu policies to have greater freedoms of those initiatives that would be followed up in practice and such efforts and with those allies to come from an independent decision with the europeans with the priorities to address multilateral institutions to link up those european initiatives with that conductivity plan adopted by a 2018. to have a more specific example of how this works and that has taken place that was m

let's start with europe. priya, you have an interesting call on the periphery i want to explore with you. it is the idea that after years of behaving like credit, the periphery can start behaving like a sovereign again. walk us through it. priya: the biggest reason the periphery traded like credit was this redenomination risk. the idea the eurozone can break up. i think draghi and the ecb have put an end to that. i think that should get priced out. that is already getting priced out. the other thing is on the ecb. they have told us they are not hiking until the end of the year. they have done the tltro programs. they are going to help the periphery. what they are trying to do is extend the cycle as much as they can in europe. european growth is weak. i think there are big structural issues with europe. if there is a reach for yield in europe, where do you go? you are at zero in bonds. you want to go into the periphery. i think the periphery spreads will continue to tighten. gershon: we tend to do with the ext

in europe spaces for talks. in brussels the chief executive of one of germany's biggest industrial names says europe needs to play ball with china don't use kate focus and caught up with him a short time ago. i'm joined by seaman c.e.o. joe kayser he's recently taken over the chairmanship of the asia pacific committee of german business that's an umbrella organization that advises the german government on economic policy in the region mr kayser thanks so much for joining me evers i'd like to begin by talking about china's belt and road and initiative many german companies are already heavily involved but the german government has stopped short of signing a memorandum of understanding with beijing in fact last month when italy did just that more than a couple of guys were raised why has a common e.u. stance in the face of china's growing economic might proven so elusive well i think first of all people to the it is that if it's a very low to the international colloquial initiative which repeated takes years. more

europe was black. -- europe was flat. north america had a slow decline. growth inwe had a 10% orders. some of these orders will only make it to revenue in the course of q2, q4. momentum will build as we go through the year. that's why i also look at it as a reasonable start. toough the year, we will get our growth target. let's take some of that conversation. it's i want to focus on europe first of all. have we passed recession risk hallmarks for you? >> i think europe is in a challenging situation. we have elections coming up. growth across europe is uneven. overall, i see a flat market growth in europe. it is not clear how that will turn out. it is a huge region. it is important, but for growth at this time, phillips has been more successful in emerging markets. what about price increases? where have you had to implement price increases? were -- were you able to make price rises sticky? rises stick? the headwinds were partly the tariffs. we can pass that to customers in the short term. it is not completely done yet. i always say to our people is through

nations was europe it was within africa and then in europe but i think that we. it's trying. this situation so far that everybody stands well they're all coming to my country we have to do something have to close the borders and stuff so i think that first of all we have to know each other and europe and europe have to know what is africa now. actually we need it why because you see in africa there is the most young people and this those people are not people that is they have their very it will be dictated and they have a lot of parts left to give and we should come to that positive part in just a second i would like to wrap up the part who's to blame actually because there's always a lot of blame game between africa and the european union with a tweet from the rwandan president paul kagame mean if somebody doesn't really mince his words very clear tweets always and he tweeted if you look at history of this migration for a long time europe was inciting inviting people to go to europe the message was your countries of africa are governed badly and you should come to us that t

we think it is an important time to stand up for europe and the eu. we have seen, the eu is may be the most important project in the world. —— most important piece project. we have driven prosperity and shared it more equally among people, in europe. where does brexit fit in on this, you do have british companies as pa rt you do have british companies as part of the roundtable? yes, when we look at the challenge in the geopolitical context, but also, as you said, in the introduction, from climate change, from digitalisation, we need to invest, we need to be upfront. we used to say in the oil industry, it would be the stone age, but we ran out of stone, we found better ways to do it. —— we used to say in the oil industry, we didn't leave the stone age because we ran out of stone, we found better ways to do things. still, we are not doing good enough for where we need to be. we need a stronger policy framework. we are pushing that. on the digital side, that is going to patch everything in our societies. we are not as good there. we seem to fall

in europe and outside of europe. is much morermany if you were to look at one of the states in the u.s. -- california, you would not discuss trade imbalances between california and the rest of the u.s. or the california and the state and new york would be one state and right at the center of the united states. this would not work. this is why my approach to european policy is we are relevant for progress and compromise and we are not a have a lot ofe citizens and economic strengths. and our ideas are always very intelligent. we should try to find out that we are relevant for compromise in the e.u. coming back to this economic question, i think it is worthwhile to follow the idea that i explained to you. there is more of a european economy than a national one and this changes the perspective of trades in balance. if you go around as a finance minister of germany and speak to different states, you will find they are talking about the german economy because it is critical for their development. you will find out that th

europe is the missing link. as we go through the second and third quarter, if we get stabilization and global growth, we have three things historically which should give us a weaker dollar. that is the key to europe competing and possibly outpacing. thank you very much indeed for coming to cs. jonathan stubbs joining us from city group. vonnie: let's check in on the bloomberg first word news. here is we need a young that here is renita young -- here is renita young. u.s. gdp grew stronger than expected. the economy got a big boost from inventories and trade. that offset a slowdown in consumer spending. president trump meets with japan's prime minister shinzo abe today, i day after trade talks began with the two countries -- resumed, actually. both sides are hoping to reach an agreement that focuses on agriculture and vehicles. the u.s. wants to reduce the trade deficit in japan. it also once rate or access to the country's agricultural antset -- it also w greater access to the country's agricultural market. -- t

located in the heart of europe you are connected to the whole world. experience outstanding shopping and dining offers triallists services. guest at frankfurt airport city managed by from. this is the deputy is coming to you live from berlin criticism sudan demand democracy now leaders of the protests when brigit the military council split of civilian rule within two years thousands gather for friday prayers outside army headquarters to keep up the pressure for change also coming up. a first of life behind bars for wiki leaks founder julian assange is arrested in a sort of freedom of speech for the capture of a dangerous hacker.

i and i and i agree with that and i think you know within within europe there's a lot of the bad about about freshness and tension. no one really knows and there is a lot of this agreement among european allies on that and yes we absolutely shouldn't be naive but i don't i don't want to make the argument that we need to nato because of russia time has moved on we're no longer in a cold war and nato has been doing many things other than you know just the fend against russia there are many other threats out there it's a scary world i made my list claudia china cyber threats terrorism hybrid warfare and migration i don't know what you have to add so that's how continued they continue to defend successfully nine hundred and thirty million people from twenty nine different countries against all verbs for its. my first my first reaction white surprised too but i think the precondition to actually think about successful defense is sticking together as a political union because only if you have all countries agreeing that you need to do something they do remains relevant and then you have to t

in europe we never work and also in some part of the of the west europe when they were because of. the prize the individual looked to the collectivity when they were working chinese working from one thousand is a concept that seems the foundation of china but. is there any middle ground i mean we are talking not a major infringements on human rights or putting people into concentration. camps or simply talking about streamlining policy on technical issues. with china is not going to sit around and. look for example to the agreement to world wide today you're. of trade agreement or why the united states. members they negotiate to. delegate to negotiate to today you are. in front of. the want to negotiate. this one example the second example europe has been through does make a. unique case in the story. and to the. security to buy many and even the chinese. just. example of enormous success. because just a few days ago your own country signed a memorandum of understanding with china to become an official. at the time. even agreed formally on its new policy. looks like your own countr

this is "bloomberg: daybreak europe." parliament rejected all options deal.lace theresa may's losing steam, the global stock rally comes to a standstill in asia, and the u.s. futures point lower. treasury yields it dipped after the biggest surge in three months. and the european commission president jean-claude also talks trade as china's top negotiator heads to washington. ♪ manus: it is daybreak europe, we are live from dubai and london. the question to put our guests, has lebron market just had a basisg moment, nine points move. this is the biggest one-day move in three months. as a marker gone too far ahead of itself, pricing in a new recession? goldmann joins sachs and others cutting their revenues for this year, saying tot yields will go down 2.05% because the fed will go easy. but there is a turnaround in those numbers with china and the united states. i want to show you a couple of commodities. iron ore on a virtual tear, the best quarter since 2016. china trade deal gets done and you have a choke off in supply,

government wants impose a shock on europe and take europe into recession, it has the power to do that. the government probably puts the u.s. economy itself at risk and risks a u.s. recession if it does that. likely to be a lot of headlines. ultimately, we don't see a real impact on this plays out in the coming months and quarters. vonnie: is it impacting any of the stocks you are recommending investors buy? i know you have several recommendations that are global and export oriented stocks. jonathan: yes. again, there are crosscurrents here. even over the last few weeks. i think most investors and ourselves have been very focused on china, what we call a china pivot. without stabilization in china this year, things look bleak for europe and maybe the global economy. what we have been seeing the last couple weeks is better china data coming through, pmi's, et cetera, and showing the action from the fed may be easier, politics improving in u.s.-china. we think that is crucial to how european growth can stabilize in the absence from imposing the shock from the u.s. have seening data we co

of the fight to defend the judeo christian basis of western civilization so that's just not just in europe but right across the world. to our viewers on p.b.s. in the united states and all around the world welcome we begin the day with the latest battle for tripoli ever since more market off he was ousted in two thousand and eleven libya has floundered as a failed state it's. poverty matched only by its wealth in oil and the armed men trying to control it or tonight the world lord khalifa have talked is leaving his troops in a campaign to take tripoli the capital of libya as you win back government france have tours close as western ally claims it knew nothing about the assault yesterday the u.s. pulled its small contingent of forces out of the country and worries are growing that fighting could lead to another wave of migrants trying to flee and get to europe have tours forces already bombing tripoli's main airport which puts them very close to their goal and to the goal perhaps of throwing libya back into a civil war. in benghazi members that have to as a militia prepare for their onslau

help these countries of europe out. so that they don't fall to the threat of political instability or communism. the truman administration responds to the challenges in europe. it really took two forms. it became the policy of the government to support countries that were having difficulties. and that started with what we called the truman doctrine. based on a speech that truman game in 1947. >> if we falter in our leadership, we may endanger the peace of the world. and we shall surely endanger the welfare of this nation. great responsibilities have been placed upon us by the swift movement of events. i am confident that the congress will face these responsibilities squarely. >> the key line of the speech is here, it says i believe that it must be the policy of the united states to support free peoples who are resisting attempted sub jew allegation by armed minorities and by outside pressures. -- resisting subjugation -- the british were pretty much bank corrupt after world war ii and they said they could no longer prov

if europe was trading at a premium and this was out of the blue, the markets we be affected, but europe has already been down in the dumps so long that i doubt incremental bad news will move the needle, especially if we are on a cusp of a deal with china. alix: a chart we are going to use throughout the program takes a look at the s&p continuing to grind around record highs. what is going to turn the sentiment? guest: the question is will we get some sort of foam a rally -- some sort of fomo rally. etf's, both and active and passive, got redeemed by about $89 billion. in the first quarter, the s&p did a perfect v, gaining 14%, anotherstors regained $66 billion. it is unusual that they keep selling after such a strong rebound. are thetion is demographics different these days? are people solving for different outcomes? are they getting their equity exposure through solutions based funds? are people still looking around the corner for when and where the next recession is going to be and thinking to themselves, why am i going to buy now if we are going to be in a recession a year from now?