Companies that have that exposure to huawei. There was some concern that huawei wasnt considered part of this trade deal and there was that reuters report saying that Trump Administration might double down. Scarlet nevertheless, record highs for major indices. Lets check in with our reporters to see what they have been monetary as the closing bell rang. Abigail not a huge reaction to the signing of the phase one trade deal but where we have more reaction, romaine was just talking about it, tech. Down 1. 2 . Apple is off, down for a second day in a row. One analyst says the reason the stock is up, this particular sector because the First Quarter typically is seasonally weaker. Plus, you also have the fact that valuation is sky high. Some chips off the table especially with some of those tariffs in place until perhaps after the election. Apple also lower on the day. You can say some of the china sensitive stocks are lower. Over the last decade the story for apple has been up. A beautiful uptrend for apple but there have been consolidations. The momentum indicator going skyhigh. This is possibly one of those scary charts. What we have is apple at record highs. Last years rally up 85 . An over bought rsi, the most since 2005 at 89. Technicians like it when it is rising. That stars to move down it is likely we could see apple dropdown perhaps toward the bottom of that range. Well keep an eye on it for sure. Lets kick it over to utilities. And pg e is in the middle of a battle that kept 0 in the utilityof the u. S. Bankruptcy dragging on from us to your. This is different today, because th pg e moves closer to developing an agreement for bondholders. Citigroup upgraded them to a buy from neutral. I deal would turn some of pg es biggest haters into backers of its plan to emerge from bankruptcy and move them one step closer to getting a proposal approved by the state imposed deadline of june 30. Taylor im taking a look at shares of tesla, heading lower today. We are off a 4 after the closing bell. Were in a longterm negotiating period to buy glencore cabal for their shanghai plant. It would help tesla avoid any supply squeeze in a key battery metal for their car. It could be a potential big win for glencore as well. If you take a look at the chart, perhaps the news is not trading on that but could be much more of a profittaking. 518 a share. Jumped 25 , doubled since the october low. An analyst said that is that rate of change that made him nervous. Buys, somels and 10 of this profittaking could be continued battle that we see between the bulls and bears when it comes to tesla. Joe thank you, markets team. Still with us is doug ramsey and asset reporter sarah ponczek. I want to go back out to you. You talk about lightening up in equities today, this afternoon, maybe you nailed the generational well check back in a few years. In the meantime, where do you put that money . Do you keep it in cash, do you go out the long end and get treasuries . Is there anything you like instead of equities . Doug we actually increased our equity hedge so we dont reduce our longs. Quite frankly, some of our long groups are not defensive in nature. We have been heading in the Semi Conductor equipment stocks for a long time. Were in the data processors, homebuilders. Its fairly aggressive leadership in our longs within our tactical funds. The shorts tend to be more focused on the commodity stocks, the deeper cyclicals that of had a bounce over 12 months. Thats what weve done rather than moving the cash. That is always the we manage that net equity exposure. We do have a little bit of gold. A 3 position. I can see added to that on a pullback. Its pretty clear that when we have, im saying when, some are saying if, when we do have the next recession we are to see some pretty extraordinary policy responses. As if what were doing right now at full of claimant is not extraordinary. Huge deficit is a percentage of gdp. Whether the repo activity undergoing by the fed is q. E. Or not, i dont know. It clearly had a very stimulative impact on the stock market. If we are doing that at full employment, imagine what we are going to do when we sink into a gardenvariety recession. Gold could do well on a longterm basis, on the basis of that monetary irresponsibility. Scarlet the fed is going to monitor. The fed is monitoring all the data that is coming in. They are data dependent but you have written a story about how that may not be the best indicator for what is really happening in the economy anymore. We still look at manufacturing as an outsized effect on the market. Even though it is not a big part of the economy. Sarah particularly the manufacturing side of the economy. If you look at manufacturing, it makes up a 11 of the gdp, the smallest share since 1974. There are many knock on effects. It affects other companies as well. However, to look back at different indicators over the past year. Manufacturing. If you would have you would of been freaked out the first time that indicator dropped below 50. You would have missed out on a 60 rally over five months. You think about the dow transportation index, the dow theory to get an idea of a confirmed uptrend in stocks. To put money to work, a new high in industrials has to be confirmed by a new high dow transportation average made none last year. We did not get a clear signal until yesterday which is pretty interesting. Doug, when you look at this market, big part of it, too, hase been defensive in nature. I am just wondering, when you look at the potential for any sort of shock to the market, how volvo role you think investors are in aggregate right now, based on the way they are invested, based on the way they hedge . Sarah,gain, by the way, i saw that piece. I thought it was great. We have that exact debate on a wiggly basis. Basis. Weekly what is not broken down is fed liquidity. M2 started to bottom right as the market was making a little back in december of 2018. So, with the benefit of hindsight we couldve put more weight on what the fed was doing through evaluations. That was the right call for 2019. But i do think there is a lot of credibility. About so much talk not equities but about the s p 500 in particular because it is really hammered almost every thing else in the second half of bull year bui market. There is a lot of crowding into the top 50, top 100, reminiscent of what we saw in 19992000. Tiered market as what we got been but i do not think that is a goal to which you should aspire. We ended up with a negative return decade after scaling the heights in early 2000. We are closer on a lot of valuation measures than most teche appreciate to those bowl highs we put in 20 years ago right now. Scarlet doug ramsey talking 19992000perils from and that is the second time we heard that today. Jimmy chang over rockefeller also made that observation. Thank you. Whatd you miss . Is up next we will look at the freshly ink ed phase one deal in what comes next. This is bloomberg. Caroline from bloombergs headquarters in new york. Joe here is a snapshot of how stocks close today. Utilities, health care, real estate power the s p 500 to another record high. The question is whatd you miss . The u. S. And China Signing off on the phrase one trade pac. Russias reshuffle. Sweepingroposing constitutional changes. The roaring 10s . Why the past decade may have been as good as it gets for the wealthy. Scarlet we start with one of todays top stories. The phase one deal that was three years in the making. An 86 page agreement so comprehensive and includes a vow rare earth material used for missile guidance systems that the u. S. Does not have. To importngs promise the material not mind anywhere in the u. S. Be just as likely to come true is any other part of the deal . The undersecretary of commerce for International Trade under president obama is joining us. He is the founder and managing partner at bridgeport. Maybe a little bit cynical, but as romaine asks, is this a commitment nor target . Both. Cheek the tongue and comment, the administration deserves some credit. There is Real Progress that past administrations have not made in terms of advancing our trade relationship with china. What it will fundamentally do is relax the uncertainty in the market and quell some of the fears this was going to escalate further. There are some real positive scared on the other hand we have a balanced view of what was actually accomplished on the those big issues relate to subsidies of local businesses and real market access. I think would if it in on complete an in completed there has been a lot of good bloomberg reporting that has shown a lot of ample evidence and data evidence of small to midsize businesses, far trade war. Rt by this was that worth it or some of the losses and some of pain that some of these businesses have felt is that going to be rectified . Theo, that is multibilliondollar question which is was the light worth the candle . It is not just increase prices to consumers and lower profits to businesses, that was also 28 billion of farm aid. Farmers feeling the pain, debt high, uncertainty in the markets, Foreign Direct Investment going down. That direct investment is so important to actual u. S. Employment and jobs that are traditionally very highly paid. So, there have been some real cost. The question is what did we get for these tariffs and in this three years of drama . Part, we are been talking about specific commodity targets. Some that we dont apparently have. The ways that china and the u. S. Do business with each other, the more difficult parts saved for face to. Techr phase two like transfer and cybersecurity. Is there any reason to think based on phase one, well actually solve those bigger issues . There are rtwtwo questions. Will we get there and when might we get there . Given the amount of time it took to get these modest competence accomplished, it is highly unlikely we get that during the tendency of this administration. Dont forget, the things that are left to do that would be in phase two or phase three is the heart of the chinese economy and the commonest party, which is the state control of their economy. This raises the question which is really, how is the largest market economy in the world, the united states, going to coexist over a long time with the largest nonmarket economy which is china . And there is no precedent. The timetable to figuring that out is uncertain. Scarlet a work in progress. Todays News Conference was remarkable. The president talking for 40 minutes before he gave way to the vice premier of china. In that spirit, hope the u. S. Side will treat fairly Chinese Companies and their regulatory and investment activities and give support to the collaboration between enterprises, research institutes, and schools, and colleges of the two countries as it will help neutral trust and cooperation between us. Scarlet that was a translator for the vice premier liu he. Kind of strange because there is a lot of discussion into the lead up in the signing on where it would be signed. In a neutral country, when the president s met. In the end, it was in the white house and xi jinping did not show up. Timmy chang says he was mentioning chinese websites, there is no mention of the trade deal. Is this less important to china than the u. S. . That raises the question of how much there is there. From the chinese perspective they did not get very much. They got some relaxation of tariffs, and some tariffs being threatened to be put in. And talkt go home about a victory of things they got. On the other hand, they have free access to our economy. There were not a lot of things we had to get to them. So i think they are going to naturally downplay this agreement. On the other hand, i think a lot of the majesty youre seeing in the white house is really more of a political show than a true economic and commercial show. Romaine there is a lot we can pick apart. 90 something pages, 94 i believe. There was a provision allowing Financial Companies greater access to the chinese market. Visa, mastercard in a couple companies. There were some tangible things in here that will have an immediate impact. For sure. The question is a lot of those things have been discussed for a very long time. And a lot of those things are in the best interest of china. So, my question to before was what might we have accomplished to achieved many of these goals without the cost of our economy and our workers have had to suffer over the last three years . Joe that is a really interesting point in something that gets lost when you say some of these things are in the best interest of china. Do we risk falling into a trap where we start to think all trade agreements are zerosum . The president frames the agreement that went. That way. I blame my predecessor for not having a good trade agreement. Are losing sight we losing sight of the agreement that in theory free trade can benefit both sides . Isthe definition of trade not a zerosum game. We would not trade with each other if we were not both better off. Full stop. That is one of the fallacies of this. I would also say that focusing on the chinese purchases of u. S. Goods and services is a mistaken notion, because trade deficits as you talked about on your show before are not fundamentally based on commercial policy and trade policy, but based on savings rate and consumption and exchange rates. That should not be the focus. The focus should really be on the fundamental issues of the economy and from that perspective this is a ceasefire and not a win. Scarlet very quickly, will Peter Navarro be happy with this or will this get him riled up more . I dont know him. I cant say. He is clearly the most hawkish person. What i would say if he has, and even the president has in the past, talked about dealing with these fundamental issues which phase one does that do. Ormer undersecretary of commerce under president obama, thank you very much for coming on. Coming up, we hear from blackstones leader Steve Schwarzman on his thoughts on the phase one trade between the u. S. And china. From new york, this is bloomberg. Blackstone ceos Steve Schwarzman was one of the Business Leaders that congregated at the white house for todays phase one trade deal signing between President Trump and chinas vice premier. He spoke with us after the ceremony. Well, what it does it provides the baseline of a better world economy. I think youre seeing in the markets over the last sort of whatever you want to measure, you know, the last year, certainly the last few months, as this agreements come together, it is not the only reason for strong markets. But its the Business Community globally telling you that things are better now in terms of prospects than they were before this agreement was entered into. And so, when you think about mostase two, what is the important thing for you to see as an investor and a businessperson . Steve i think phase two will cover a number of other things, which are important, you know. Things that, you know, have not been resolved. There are some issues regarding tradeand nontariffs restrictions. And also tariffs themselves have not been fully negotiated out in terms of where you go when these things all unwind, assuming you have successful phase two. And there are other issues as well. So, whats important as a businessperson is to know that t heres positive momentum. There are countries who realize that even though there may be rivals in certain areas, that in the commercial area, there is ach cooperation on as fair basis as you can do is better than countries just sort of bacon apart breaking apart, which is deleterious for world trade and for business. And so, when you think about that momentum, we are speaking on a day, steve, where just up the street from you the articles voted on of impeachment. Politics is never far from this conversation. How much do you worry that politics could get in the way of the momentum that seems to be established right now economically . Steve i think that is on a separate track. And, you know, if you look at theu. S. Since 1789, when constitution was put into place, two there have been only president ial impeachments. This would be the third. No one has ever been impeached and convicted. The fact that the vote was completely partisan in the house to thefollowon earlier russian investigations, the public will look at this and say this is basically fundamentally partisan activity, and it will probably end the way the other impeachments have. Probably there will be a better opportunity to do things in the future as a government after this is put behind us. Right. Scarlet that was blackstones ceo Steve Schwarzman speaking earlier. Coming up, russian reshuffle. His state of the nation address to call for a constitutional overhaul. The presidency bolsters putins future. We will discuss next. This is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Nancy pelosi has chosen seven lawmakers to prosecute the houses case. The seven include two committee chairs, Jerrold Nadler and adam schiff. Stake here is the constitution of the united states. This is what an impeachment is about. The president violated his oath of office. He undermined our National Security. He jeopardized the integrity of our election. To use the appropriations process as his tovate atm machine in order avenge his personal and political advantage. Chosen was a california representative who was on the Judiciary Committee during the clinton impeachment. Shakeup in thea russian government. Calls forutin sweeping constitutional changes. There is speculation the russian leader is trying to extend his grip on power beyond the end of his term in 2024. On this comingre up in a few moments. President trump and the chinese vice premier have signed what they are calling the first phase of a broader trade pact. The agreement is expected to increase sales of u. S. Goods and services. Can help Companies Operating in china by better protecting their intellectual property. During the signing ceremony, mr. Trump called the deal a momentous that. He said talks for a second part of the deal will beg