Area near damascus, and more than 200 people have died there this week. Carrying three satellites roared into space today from the california coast. It up like a spanish imaging satellite and carried to smaller test satellites, one for a system that provides Internet Access to remote regions. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. It is noon in new york, and i am vonnie quinn. Shery and i am shery ahn, welcome to bloomberg markets. Vonnie from bloomberg World Headquarters in new york, here are the top stories around the world that we are following. Stocks, back, u. S. Signal growth and inflation picking up the major indices, up 1 or more now. Mixed messages, President Trump pushes for morgan control in a slew of tweets but also offers up praise for the nra, calling members of the Association Great american patriots. Is working on upgrades to wireless headphones, according to apple. Details on this group later. Abigail doolittle is with us now, and we see major indices are higher by more than 1 . Andail the bulls are out, we have the dow and s p 500 up, the nasdaq up by nearly 1 . This is strength after yesterdays bearish reversal, some we saw on tuesday too. Orl the buyers stay in place see a late day selling situation . Recently has come to rates, and we could see these gains and gone, but time will tell. Relative to the dow, all 30 dow stocks are up today, and the dow greater than 1 move, and we see the red line is 0 , and he see the selling pressure not long ago, but losses and gains on the rebound than all the 1 moves to the upside last year, so pretty amazing. This chart showing us tremendous tends toy, volatility be gets volatility, so well see more of the same whether or not will go to the upside and downside. Strengthso the dows both industrial shares higher, boeing on pace for a record close this after they offered a . 4 billion offering in the midst of buyback action, along with that m a environment, and United Technologies up more than 4 with the company weighing a potential breakup, looking to split up their three main segments of jet engines, elevators, and airconditioners. Another stock looking at today, put up aer the Company StrongFourth Quarter and beat earnings by 112 . They are helped out by the tax overhaul plan, plus their outlook is very solid. This ahead of a board seat battle. Finally,ly higher, and lets end on stocks appropriate for lunchtime. Cheesecake factory and wendys. Cheesecake factory beat fourthquarter estimates, it is in line and it looks at they are planning on raising prices and the tax plan and overhaul helping them. Wendys shares was lower, but now up near 4 , but the shares now, higher nonetheless. Shery abigail doolittle, thank you so much. U. S. Stocks near session highs at the moment as the fed signals optimism yesterday as investors feel the reality of tightening monetary policy. Our next guest says changes in the investment landscape is modest. Us, after now tell the 10 correction, what has changed and what has not . Bit like anittle earthquake, a moderate sized earthquake, which could be scary at the time and cause damage and casualties, but we look at the lets get after the dust settles, has a move much. Has happened here is longterm Interest Rates moved up, and that caused a big selloff. What is going on right now, this is where investors learned to stop worrying and learn to live with higher rates. That is where we are right now with 3 at the tate year treasury is not as scary to investors as the prospect of it was, that is why markets are rebounding. We had pimco sank treasuries are looking attractive now, and as in equities investor you may think of any money out of equities and if the treasury because you get a third less volatility this in return. David i wouldnt go that far, i i think then rates have to move up from here, and if you start with a yield of 3 on a tenyear treasury and go you lose au could years worth of return just on that move. Isgree that fixed income looking more attractive, but you need to have a portfolio in case something goes wrong. I am much less negative on fixed income than i was, but u. S. , particularly international equities. Shery how our Interest Rates doing compared to the recent rise in yields . David if you look at where we almost 3 on a tenyear treasury, it amounts to 1. 1 , and historically over the last 20 years or 25 years, that number has stayed at 2 , and if you go to the 50 years before the financial crisis, it was at 2. 6 , so were inching back to normality. I dont think we will get the whole way there, another 50 basis points, maybe 350 on the treasury sounds like an equilibrium level, but we rates are too low for a healthy economy with very low unemployment. There is no reason for rates to be the slow. Although we have come out of negative territory to a large extent around the world, these to have 12 point something trillion dollars in negative youll territory, and now that is only seven point something, and lets move the equities than. Domestically. Versus thes cyclical fences, so they are still looking relatively cheap and benefit from further increasing rates that we expect. Technology also looks very good. And there isth, international profits, and is looking good, and i also get away from these people are buying just for the dividend deals because those things like telecom stocks, which are not expensive, and utilities. They are somewhat expensive, but people are buying them for the yield. Of the yield of treasuries go up, that should hurt the stocks. The vixs bombing, staying at 20, but very high compared to the average in 2017, does that mean we move higher in volatility or could we expect it to settle down . David it is very likely to settle down, going back to my earthquake analogy, the vix spikes and slides, so whats it spiked, a few weeks ago, it takes a long time to get to normal, just like people are scared of aftershocks after an earthquake. So unless theres some other shock, i expected to come down to below 50, maybe even back to where it was last year. I think it will keep on sliding unless there is genuine shock to the economy. Vonnie where did you see the next recession happening . I think there is some riskier. Half ofbly isnt first 2019, but we are putting stimulus into the economy it is more kegs at the fraternity party, and the problem is the morning after. Off, as stimulus backs the Federal Reserve is tightening, i think the u. S. Economy will be vulnerable. I am worried that overstimulating the economy is not capable of growing in the long run, and we may see a slight in 2019, and there is a risk there. Talk about stimulus, we are expected to see more important demand which is going to widen the u. S. Trade deficit, so where does the dollar go from here . David that is exactly right, we can only regrow at percent per year in terms of supply, and we increased at an amount of 3 per year, then that is going to be more import. That trade deficit will push the dollar down, so i think the dollar can fall further against the euro. We are running a big trade deficit and it is going to run worse, u. S. Is going to grow slowly in the long run and that means the dollar should be lower. Vonnie david kelly, thank you for all of that. Coming up, the white house is sending mixed messages on gun control after campaigning as a starch the sender of the second amendment, is President Trump willing to compromise . This is bloomberg. Shery this is bloomberg markets. President trump went further than ever this morning advocating for gun control measures in rising pressures to act after School Shootings in florida, the present we did this morning saying that he will push for tougher background checks, raise the minimum purchase age to 21, and and the sale of bump stocks. This is the present called the National RifleAssociation Great patriots, so what exactly is the trump administrations message on this issue . What does reporter joins us from the north lawn, and we are awaiting the president meeting with state and local officials on School Safety playback from that meeting, and we are getting some headlines. Republicans nra and want to get something done according to the president. What exactly is that given what ceo of the nrahe at cpac . Pushback fromng gun rights groups, including the is about 30 million in helping President Trump elected. The president said he will be there for the nra during his campaign, so some of the policy is putting forward our nra improved approved policies. Background checks and copper mentalhealth Mental Health funding, and calling for the atf to ban for bob stock split. Com for legislation on bump stocks. When area he appears to be at stock is the minimum age to purchase assault rifles, raising from 18 to 21. The president said he would be in support of that but we have not seen whether other republicans will be in support of that because the nra is against it, it does seem it is an uphill climb. Whether the president puts his shoulder to the grindstone and pushes for that will be interesting to watch because for the most part he has been in lockstep with the nra. If he decides to take them on this issue and raising the minimum wage, that could be interesting battle to watch. Otherether or not republicans continue to stand with the nra or follow the president and calling for this race in a member in minimum age. Do it with his executive power or will he try to do it through a legislation, because we know if you get a senate l, the House Freedom caucus would be happy with many of those deposits . There is some areas he would have legislation to change things, including raising the federalage for purchasers of firearms from 18 to 21. As you mentioned, the House Freedom caucus may not like the idea of what some people might say is taking away gun rights people between the ages of 18 to 21, but if the president pushed for this you can call for the House Speaker to put this on the floor and get but democrats and some republican support and get it through, and he could also get that through the senate. It depends on how much the president is going to push for this and whether or not he makes a fight he takes on or decides to push back against the nra or not. Those of the nra have enough leverage that ultimately whatever happens, the nra compromises, not the president , because after all the nra will be funding the midterms and the president knows that he is vulnerable . Are the parties vulnerable . That is why you are seeing some of the things that are backed by the nra, including Mental Health funding and Arming Teachers and schools and making sure schools have enough Armed Security inside the classroom. Areas like banning assault rifles all together or pushing for universal background checks, ant,thing democrats w these are areas the president will decide with that nra and will continue to buck the nra position. Isdoes appear the president still largely on the side of the nra and it is not clear he is going to really take them on beyond this area of raising the minimum age for assault rifles. Much, thank you so joining us from washington. Now florida teachers are demanding change to their pension fund after bloomberg reported yesterday that their state pension fund is invested in gunmakers that produce the same ar15 rifle used in last weeks Parkland School shooting. The Teacher Association demanded those managing the funds to divest all of the gun stocks immediately. Joining us now is the bloomberg reporter who broke the story. Talking yesterday about whether or not the teachers knew about these funds and how invested they were. They are now asking for divestment, but how easy is that . Havent gone so far as to say they want to divest, but theyre saying they are frustrated by this and did not know about this. The president of the association said people were sickened by this, so they havent called a formal call for divestment and partly the reason is because the powerrs themselves to havhe to do so. And it ishe trustees, a difficult change. The reason people didnt know, we get our 41 k statements, and theres line items and it is hard to know what you are invested in sometimes. Vonnie some Pension Funds have it been easier, have you seen any situations like this where you need a governor to be involved . Hook, we2, after sandy did see a move to do this. Was more complicated was dealing with the hedge Fund Managing their money, because they owned a firearms company, remington. Took until 2015 to complete, so this is not something that can be done overnight, it could be a long and drawn out process. Will take movement and organization among the teachers to say we want out, and in florida, which is a purple state, that may not necessarily happen. Shery what exactly do they own and howard vstoxx reacting with President Trump coming to debate . What exactly do they own and how are they reacting . Not what manufacturers are expecting, what the company was expecting from a republican president , and when there is fear of gun control, there is not a frantic by for guns. Vonnie lets talk about bump stocks. They are a new item, but they can to attention because of the las vegas shooting. They basically make a semiautomatic firearm fire at the rate of an automatic firearm, which can cause carnage like in vegas, so the president is calling for a ban on those items, and the second that happened on secondary auction sites, we saw prices double and triple for bump stocks. Vonnie are the companies that make them . There are smaller companies, and one is out of texas, but when you compare it to a company that is billions in sales, it is not much in the firearms industry. Vonnie what are Industry Leaders saying right now . A lot of people were not expecting this from the president given his close relation with the nra in the past, so i think everyone is waiting for the next shoe to drop and want to know what comes out of his statements. Vonnie will get more after his meeting with state and local leaders. Story. Ou for the great coming up, snaps ceo is one of , this isaid executives bloomberg. Shery welcome back, it is time for Bloomberg Business flash. Snaps ceo is one of the highestpaid executives in the chief of2017, and that snapchat received six and 38 million, all of that in the form of a stock branch is company got when his company went public last march. Amazon plans to open up six more stores before the end of the year. The ecommerce giant is reported the considering locations and los angeles and hometown seattle where the forced amazon go store opened last month. And was on reinvent the way people shop. There is a huge agenda pay gap in barclays, and just under that, have of male colleagues, and the gender gap widened, with bonuses paid to employees at Barclays National unit. Barclays is the first major bank with reddish operations to disclose data. And that is your business flash update. Coming up, will the 10 year treasury hit 3 . What it will mean for the threeyear bond bull market. This is bloomberg. Live from bloomberg World Headquarters in new york bloomberg markets. Lets get a check of the major averages. Rising for the first time in three days. It is up to 1. 3 percent. All sectors in the green as well, which is being led by energy and real estate. The dow is the highest in three weeks. Focus on the on, they action aucti final sale this week of the debt. Lets go to mark crumpton. Mark President Trump asked the Justice Department to band rapid fire bump stock devices like those used in last years massacres in las vegas. The federal bureau of alcohol, tobacco and firearms is reviewing whether it has the power to regulate bump stocks. Rposing any ban is likely to draw the aft to the atf into a legal battle with gun vendors. Comments were made today at the annual cpac conference in maryland by lapierre. We share a goal of safe schools, safe neighborhoods, and a safe country. Opportunist wasted not one second to exploit tragedy for political game. President nra vice said expanding guns in american schools would make children safer. The International Red cross says it is shocked by the level of violence and the syrian capital of damascus. Says its convoys of food, medicines, and other supplies are waiting to be delivered. Government has been bombarding the city for weeks. Obama era will be obama era Net Neutrality rules will be officially pulled back in the federal register. Receiving pushback from political bodies opposing the changes to Internet Service providers. House Speaker Paul Ryan made an announcement today that billy graham is to lie in honor at the capital. He died at the age of 99 yesterday. Global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Barclays messi 2017 ended on a mixed note. We asked how things were going in 2018. The big news is that we ended restructuring of the bank. Businesses were are looking to close. We began to thousand 18 with a clean operating model, the first time in five years for barclays. The also closed with a very Strong Capital position, 13. 3 . That is the first time we have done that in a long time. To plan for as dividend of 6. 5 cents for shareholders, more than double what we paid in 20162017. Good about that. We feel good about that. Volatility came back as some of us thought it might. That is good for the markets, but it is way too early to get any cap get any indication. That market business, what are your expectations . You talked about targets for the business as a