Welcome back. Scarlet the band is all back together. Julie we had stock slipped today, we had a run, now we are seeing a pause. That dollar, we talk about the , butlation between oil this year, the correlation of inverse correlation is really with the u. S. Dollar. We dont spend as much time talking about that. But that has happened this year as well. That said, we are seeing stocks pull back today in terms of the biggest drags on the s p 500. In particular, facebook is falling today. Intricately, Deutsche Bank says you should buy the stock on weakness. Deutsche bank is also saying that near term, theres an unfavorable set up in the stock knowing into earnings. It seems as though the focus is more on that part of the commentary. General electric is falling as well, pristine downgrading that stock valuation and underappreciated risk for the company, including a longer downturn in the oil and gas sector. Cisco and jpmorgan rounding out the top four drags we are seeing today. Scarlet stocks you are mentioning, falling after reaching the highs of the year. Volatility was the story of last week, with a lack of volatility we saw. Julie even the volatility fix up a little bit today, its still a pretty low level. Printleague jovially in as a good story out today, looking at volatility and what has happened and how it is formed a love investors. X, this is fix vi the threeyear chart and the threeyear average, you can see right now we are below that level. Andtility, after spiking seeing the return of volatility here, we are now once again below the threeyear average. At a time when a lot of investors are betting the volatility is going to come back. This is the vx next, an atm that vix. S the backs the it has spiked up and now has come down. These the shares outstanding. It a lot of folks who have been trading this have been buying even of the prices has been going down. The volume of trading has been going up quite a bit. This is something we talked about recently to illustrate the idea that people dont believe the advance that weve had in stocks, the drop that we had in volatility, they are against volatility coming back up. Until now, theyve not been right. Another way to look at this is the bottom chart, this is the volume in the vx next. I contrasted it with apple, one of the most heavily traded stocks. You can see it tends to trade below above even the volume of apple. Apples volume below that of the vxx. You have high volume and high shares outstanding at the moment. Volatility is nowhere to be found. Alix we love that function. Scarlet lets check in with bloomberg first word news, Ramy Inocencio has more from the news desk. Ramy a new report says world leaders, criminals, and celebrities have a used companies to hide their wealth. Thats a Greater Group investigative journalists. 2 billion in transactions include people and companies that include Vladimir Putin. They say their information comes from files from a law firm in panama. In interview on bloomberg television, the head of a major russian Stateowned Bank dismissed those allegations as nonsense. Putinody says that mr. Was involved, because is not his name registered anywhere. But some people who know mr. Putin have certain offshore business. So what . Whats wrong about this . Companies can be legal, they also can be used to hide wealth. Supreme court has agreed to weigh in on a case involving claims of racial bias. He says he did not have a fair trial because a juror made offensive comments about mexicans. He says the comments were so bad that they deprived him of his constitutional right to trial by an impartial jury. He was convicted last year of unlawful sexual contact and harassment. Amtrak says its operating trains today is scheduled, although there may be some express, northeast regional, and other services between philadelphia and wilmington, delaware. This comes after a fatal crash disrupted travel. To amtrak workers were killed when a train hit Construction Equipment south philadelphia. About 30 people on the train were injured. A new study on air travel will he says more flights are arriving on time and losing fewer bags. But travel complaints jumped 34 last year. Its now its highest level since 2000. Top reasons for those frustrations, flight cancellations, delays, and the extra fees for things like checking bags and changing reservations. Global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. Im Ramy Inocencio, back to you. 2016 has not been kind to big banks, thats putting a mildly. A regime of higher Interest Rates is still not in the offing. The group has bounced back from february lows. Again still trail a broader markets. Alix one fed official a stepping up the rhetoric to break them up. Neil cash card will be Holding Town Hall meetings on two big sales. Lets bring in barry bannister, and equity strategist who joins us from baltimore. Your call is of the banks in the s p 500 are bottoming. Can you explain why, when theres no shortage of headwind . Whether its the rates outlook or the renewed debate . I talked about banks, was speaking more as you look up to 2017, they would be the last group to turn of the market is going to continue to edge higher. They are emblematic of the ability to have reinflation. More immediately, i think its the risk assets, the global and that seem to be doing well. They have one more leg up. Alix you brought up reflation, thats making the rounds on wall street. I spoke about what the reflation trade of the 90s could look like now. This year think is going to be a reflation year. Brought about by two things. One is obviously, the fed has dialed back the rate expectation, basically, if you look at the United States and janet yellen, she basically told the world that things are going to be turning very cautious. Another change is really from china, the chinese governments is actually making a turn for the right reasons. Scarlet in the 90s we had a 40 rally in emerging markets, 20 rally and emergingmarket concert currencies. Is this the reflation trade were in for right now . Barry whats going on right now is more interesting, its kind of a flip of what happened in the 1980s. Back then, 1985, the john was pushed down by the plaza. It was pushed up. Two years later, a nascent 87, that the dollar back up. In 1987, that pushed the dollar back up. Now, they are pushing the dollar down. They need more structural reform. The Central Banks dont to be solely responsible for economies and the fall guy if things go bad. And because it really serves everybodys best interest for janet yellen tout dove the ecb and doj and give a hand to the chinese to facilitate rebalancing. Scarlet you are in the camp of there was some kind of coordination on the currency back in the shanghai g20 meeting. If thats the case, what would it take for the different powers and Central Banks to break ranks with comes to currency . Keep in mind, the ecb and the doj dont want to bear all the load. We do have to shift some of the stress to the government officials to do more Structural Reforms to deal of bad debts and to do more fiscal stimulus, as you will probably see shortly in japan. But chinake a while, has got to facilitate the rebalancing, they expressed since august and willingness to devalue their currency. That is disruptive and deflationary for a lot of folks. Alix in the meantime, you see the reflation trade on right now. But we have the lack of volatility weve seen the last month. Take a look at the start of the bloomberg which comes to us from all over running, and looks the absolute value from close to close in the s p. You can see here, this is 1 . We really not seen a lot of 1 moves over the last month, which is really different in the past six or seven months. What gives . Barry weve only had the s p target of 100. This is about a sector rotational call we made first half of 2016. If you look at the vics, typically bottoms as the s p is topping out. Theres not a whole of market upside, this is really more of a sector rotational call to more global, more cyclical, less about the growth in the mexican defensive. The deflationary overhang that we have now is due to the strong dollar deflation. 2008, it back to 2007, was due to the lag effect of the greenspan rate hikes of 2004, 2006. That was debt deflation. Currencyation and induced deflation are two different things. I think janet yellen is afraid of the deflationary risk of a slow Global Economy and a fast fed exit. Torlet looking ahead thursday one janet yellen will be speaking after the markets closed. What did you say that makes people rethink their position in could she sayhat that makes people rethink their position right now . Barry i dont think she is going to go off message. If you look at her Economics Club meeting, she reiterated the march meeting. March was under show in of this year, two days before the fed meeting, i said the fed had to really reconsider its global role and take into account the lack of growth overseas. The exit should not be a company by too strong of a dollar. Thats highly deflationary. By letting the rest of the world catch up, and some of the gerrymandering that went on in shanghai behind closed doors, i think we have this risk on trade for a little while longer. Alix when . Barry i think it will last for a couple months at least. Its also very highly seasonal. We should get this trade through about may. Alix barry bannister, equity strategist. Scarlet coming up, we speak Energy Minister about his countrys pursuit of clean energy. Alix you are watching Bloomberg Markets, and alix steel. Scarlet fu. 195 countries committed to reducing pollution in the coming decades. One country leading the charge on clean energy is chile. Alix the south American Country is aiming to get 70 of its power by renewables from 2030. When power has soared in projects for solar projected to grow in the next five years. Bet e on chiles digs big bet, i want to bring in their Energy Minister, maximo pacheco. Blow awayhow to chile the other competition and be such a leader in alternative energy . Chile has been a growing business in renewables for investors, and also local investors that have realized son,we have a lot of good and a lot of wind and water, and all of this boom in renewables has no fiscal subsidies, thats very important. Its sustainable. Conditions with sun, wind, and water to produce energy with renewable technology, thats very competitive. Arehe past 10 years, there bids, and renewables have been awarded, most of the bids because they have proved to be clean, and also very competitive. Has laidarly, chile out ambitious plans. We saw from the chart it really is ahead of the pack. The critics will say the growth was too much too soon, and that chile wasnt prepared, or as prepared as a could be. For instance, Transmission Infrastructure didnt follow the progress. How you respond . Maximo yes, we realize we have the solar radiation in the north of the country, which is the desert. And we have very good wind in the south and water in the south, but most of the consumption is in the center of the country. So we need to transmit this energy, and thats why we have been strengthening our transmission lines. Today, energy represents a big sector in the economy with the highest investments. Even more than what we used to , in the past we should be number one, now its energy the number one. Because we are building new Power Generation capacity. And also because we are building new infrastructure. We have more than 1000 kilometers under construction today, and more than 58 power plants under construction. 13 billion inan infrastructure, both generation and transmission, to enable all of this Renewable Energy to come under operation in these years. Scarlet something that has happened during this has been the fallout of Commodity Prices. Like you mentioned, mining was really the number one thing there for chile. If you have alternative energy to power the minds and mine shut down, what is that do for the demand for alternate energy . What happened with mining is that mining is a price cycle. With lived for many years the boom in the price of copper, similar to other commodities. And now, the prices are low. But we know this is a cycle. We know that todays prices for mining copper are low. But they will come up. And therefore, we need to have a longterm strategy. And thats what weve been working as a government to assure that we have a longterm view, and thats what weve called energy 2050. Mining was one third of the total demand electricity in the country. Thirds have another two that are other sectors of the economy. We need to restructure our Energy Matrix so that enables a lot of opportunities for renewables. And also, we are in a region of the world that has huge opportunities for integration and interconnection. South america is probably one of the least integrated energy systems. There are huge opportunities for chile also to export some of this Renewable Energy to other countries in the region. Scarlet the government believes the solution for a limited chilean to messick market would be to provide power for neighbors like argentina. What kind of steps would be necessary for regional integration . Maximo we have taken the steps already, as a matter of fact, weve started to export from chile to argentina in the northern part of the country. Weve also builds, in the 90s, eight pipelines, Gas Pipelines that we used to import gas from argentina, now we are exporting gas to argentina, gas that we dont have but we bring from other parts of the world through our infrastructure. And now we are exporting gas to argentina, which is a net importer of gas. Scarlet speaking of exports and imports, the minister had mentioned commodities and copper. I want to show you a function on the terminal which is ett are go, a trade flow. Im sorting by exports. This shows where chile sends its goods. Not surprising that, it sends the bulk of its goods to china. 21 billion worth of exports in 2014 copper is a big part of that. Thats more than double chiles next biggest customer, which is the United States at 9. 5 billion. Alix in order to run the country, you need to have a view on the Global Economy, in particular, china. From where you sit, how is china doing right now . For us, china is an important market. One third of our total copper experts to china. Weve seen declining prices globally, but also some are driven by with happening in china. China will not continue to grow the rate that we saw on the past. Its still a very big economy. Believe that this is a cycle in terms of Commodity Prices. And prices come back clearly will not be at todays , that but will recover will probably happen in a year or two years. Scarlet minister maximo pacheco, chiles Energy Minister joining us. Alix shares of this particular company shooting lower. They are taking aim at the entire sector, we dont know what it is. We unveil why analysts are biting the bullet and cutting their targets. Like a solarto say stock. Scarlet it could be a gun maker. We will see. Scarlet this is Bloomberg Markets, im scarlet fu. Alix steel. Julie hyman has a look at the company movers, and i said solar, said addison was on my mind. Scarlet lets consider the , shooting lower, taking aim, biting the bullet. Wesson, this is the two day chart youre looking , youown 16 today alone see the big dropoff between friday and today in the shares. The stock has been downgraded by a number of different analysts, tea, ande and cb and that has to do with the data from the National Institute criminal background check system. The kerley there were sequential designs apparently, there were sequential declines. It was the weakest of the pack out of the past decade. You can chart this on bloomberg, with chart of this National Criminal background check system. People who request background checks, thats the next chart we have. In this decline we saw in the month of march. Over the past 10 years, weve seen it go up. But look at this big dropoff that weve had thus far this year. Thats the source of these analysts concerns. Way, pulling down other gunmakers as well today. Its not just affecting smith wesson. We are seeing ruger also taking a hit in todays session as a result of this. You have this outdoor Sportsmans Warehouse also declining relating to this. Lets take with sin stocks. Looking at casinos today, and particular, the boko haram based on valuation. On friday we saw the casinos fall after the macau monthly revenue, the games of chance revenue they come out with phil by 16. 4 , melco shares down. Remaining the is topic of morgan stanley. The price there is 110. Shares are up. 3 . It has increased confidence that the companies noncombustible tobacco products, also known as ing products will help the company. Alix no solar. Coming up, and saudi arabia revamps its economy, we discussed reforms that what it means for the global market. Alix alix live from bloomberg World Headquarters in new york, i am alix steel. Scarlet this is Bloomberg Markets. President ialthe politics. All political roads lead to wisconsin with voting tomorrow and democrats. Trump is telling john kasich to get out of the race. Showe democrats, pull Bernie Sanders leading hillary clinton. The president , meantime, goes to law school posing the nomination Merrick Garland to the Supreme Court. He will go to the received chicago on thursday to argue for the nomination. Meanwhile, garland meets with two more republican senators. Passengers traveling out of are asked toort renew check in procedures. New security measures aim to minimize the