Thus far for the three major averages. For the dow, it is since midoctober. Of 109 break that streak sessions without a 1 loss in the s p 500. We have had this lackluster trading action in terms of volatility and movement in volume. It was the lowest Trading Volume of the year yesterday. Volatility taking up and stocks are ticking down. We are seeing a broadbased selloff as well. Only utilities and Consumer Staples are higher. Financials steeply declining today, down 2. 6 . Materials come industrials, tech, discretionary and Energy Falling today. I want to focus on the financials in particular. The flattening of the yield curve is starting to take its toll on the financials large and small. Heres the financials xls down 2. 7 . Down 2. 7 . Evidence of the Regional Bank downdraft. They had been out performer since the election. Re, it look at the k is down 5 . Bank of the ozarks milosevic premier bank ozarks, Pacific Premier bancorp down sharply because they dont have the diversified income the bigger banks do. They are down were steeply today. Lets check on treasuries, we are seeing yields lower. 1. 26 on the twoyear. There are different ways to measure the yield curve. You can look at shortterm bills. We are not seeing a steepening yield curve at the moment. Lets stick with equities and dig deeper into the selloff. Theve been talking about function on the bloomberg to measure the velocity of todays decline. Oliver you can see what is driving the Market Action today. Green shows a sector or company that is trading at above average volume. 27 of the total volume for the s p 500, trading at 119 percentage. You can click through and see all the companies in the green. Lets talk about whats happening today because this is a big move. The trump reflation trade unwinds a bit. It blows up, this is what you get. The bank stocks had such a high tear when he was elected. People were talking about, look, mr. Trump will bring tax policy changes, we will see health care changes, we will see these economic changes that we want and a lot of our banks benefit from. Now, they are starting to see people question the policy and and where his republican allies may or may not lie. Theres also been some commentary from the big names as well raising some concerns. Bank of america might be one of the worst down today. They are always linked more to rates. You also have Morgan Stanley down secondmost among the big weks that we watch because had the president saying at a big financials conference in london that fixed income trading may not be all that great, up slightly. Scarlet not reassuring. Not what we would like to see because of the comp over First Quarter in 2017 was not very good. Oliver a lot of people expected growth from a rebound lets talk about jeffries. What we can gleam from that smaller bank about the industry overall. Not a lot of analysts cover jeffries. We do look at them to see what the bigger banks will be doing possibly in the next month. The big banks will be reporting asked month. Trading surge in because they had such a bad quarter. Fixed income and equities both good. We will see of the other banks did well. In terms of investment banks, Capital Markets jeffries is a strong Underwriting Bank on the debt side. That is what renfrew much better than the advisory side. Thats raining that is what rang through much better than the advisory side. Oliver bank of america the worst stock on the day. Ceo is down at the ibm interconnect 2017 conference in las vegas. He is standing by with caroline hyde. Much. Ne thank you very we are talking about the between your ai product and watson. This is really the best of both worlds. Onesforce is the Number Company managing customer information for more Companies Overall than any other vendor. We found a way to work with both of our companies together. The crazy hailstorms we had last week, we have managed five of the top five insurance Companies Overall. Those Companies Want to know hail storm is going to happen. Watson will tell us the hail is going to come and we are able to notify those customers and get that car in the garage and the rest is magic. Ownline youve built your product via acquisition and internal r d. Watson was already there. Marc we have some incredible ai technology. It is tightly integrated into our Court Platform that core platform called salesforce einstein. The opportunity for watson is to bring a generalpurpose ai platform that is programmatic so our customers can extend and complement our solutions with what watson can do. Caroline you mentioned insurance companies. Wheres the low hanging fruit . Wheres the demand coming from . Marc you see it really in almost every industry. It can be much smarter. Employees are able to extend their capabilities through Artificial Intelligence. , we are seeing salespeople being much more productive than ever before. They are able to know exactly when to call, who to call in a paradise way. Prioritized way. Caroline you have such global reach. You are announcing a partnership with aws and australia. Geographically eating up the desire . Marc you see that across the whole world. Software is eating the world. Ai is really starting to percolate into that software across the world. We are seeing ai inside all of these different jobs and work strains. The advances in ai have far exceeded our industrys expectations. Now, vendors like salesforce and ibm can extend and complement our solutions with this amazing technology. Not just machine learning, but deep learning as well. Cocacola announced they will be building these coolers that have cameras in them and the cameras are able to do realtime Inventory Management to know what is happening inside the coolers. Trucks are automatically rolled to the stores knowing that they need to replenish those supplies. Caroline you mentioned disruption what does it mean for your bottom line and topline . Whether it is einstein were watson, what does ai built into that . Salesforce is already in the Top Five Software Companies in the world today in terms of growth. We just delivered a phenomenal quarter, the best quarter in tech. The for revenue hit 14. 5 billion come up 28 for the quarter. A lot of that is being driven by ai and a lot of other major trends that we assign ourselves to barry early very early come including the cloud and social networking and mobility. Our customers are moving to those trends. We need to align salesforce to get growth. That is how we create extraordinary growth. Crm is the Fastest Growing all of these Enterprise Software segments and will be the number one segment in the whole Enterprise Software industry by 2020 and we are the number one vendor in crm. We are uniquely focused and sales, services, marketing and analytic apps and comers as well. Caroline does the world realize how much this is going to make people lose jobs . Marc that is the 54,000 question. Thats why i went to washington on friday because im focused on that issue. Workforce will dramatically change over the next 12 decades and it will be grown a lot by Artificial Intelligence exchanges. Need to start retraining in new types of Job Development before this Technology Hits i called for a moonshot of 5 million apprenticeships in the United States based on the things weve learned from germany and switzerland. We can improve the quality of our workforce. I hope our u. S. Government listens and creates that moonshot. Caroline do you think everyone can be retrained . Marc absolutely. There are so many vehicles to educate people. We have phenomenal opportunities, committee colleges and universities and a lot of workforce of element programs already. Andommunity Colleges Universities and a lot of Workforce Development programs already. We are retraining them using salesforce. Salesforce will create 2 million jobs and add 400 billion to the gdp by 2020. We are really focused on creating these new jobs and getting people ready for salesforce jobs. Creating platforms for that is so important, apprenticeships are the key. We just built a phenomenal new program called trailhead. It gives you onetoone educational knowledge of how to work in our platform to get ready for these jobs. Caroline you are looking at hiring and growing does that remain the case . Are the valuations right . Marc last year, i was super clear that i thought there was a window that was really open for m a activity and we took advantage of that window and bought a phenomenal company, demandware. We delivered Commerce Solutions to so Many Companies like adidas we got amazing private companies as well. Year. Has happened this the markets are roaring. The m a windows have narrowed and because the windows have narrowed, i dont see us doing a lot of m a this year. Come back and discuss where your hiring goes and the push for more retraining. Marc thank you for coming here. It has been an exciting day. Caroline thank you very much, marc benioff. We will be checking in with you throughout the ibm conference. For now, lets check in on the first word news this afternoon. Mark Supreme Court nominee neil gorsuch said he would have no problem ruling against any party and that no one is above the law. It a gorsuch called softball question and said he goes through cases methodically and without any prejudice. From one in the process withime i was contacted expression of interest for potential interview to the time i was nominated, no one in the process asked me for any commitments or promises. This is the secondary of questions for judge gorsuch from the Senate Judiciary committee. The second day of questions. You can watch the hearings on bloomberg. Com. The u. K. Has joined the u. S. In banning laptops and other Electronic Devices on airplane on flights from middle Eastern Countries inbound direct flights from turkey, lebanon, jordan, egypt, tunisia and saudi arabia will be affected by the ban on laptops and tablets. Phones larger than normal sized mobiles or smartphones will also be for been in. An incident of vandalism against the Dakota Access oil pipeline in south dakota there have been coordinated physical attacks. The Lincoln County sheriff the province as someone burned a hole in the pipe on friday. Harrison says it is not opposed to the idea of the International Olympic committee holding an unprecedented double vote to decide which city will host the games in 2024 or 2028. As long as the french capital is awarded the 2024 games. The olympic charter currently states host cities must be picked seven years in advance. Paris and los angeles are the remaining bidders, but paris says it is either 2024 or it will not bid to host again. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Scarlet we are continuing to monitor the selloff in equities right now. 25 members in the Dow Jones Industrial average lower, four are higher. Thatould mention as well sean spicer is holding his daily news briefing, including taking questions on todays equity selloff. Reiterated Investor Confidence in President Trumps agenda. That is available on the bloomberg. From new york, this is bloomberg. Scarlet this is bloomberg markets. We need to get back to the equity markets, taking a closer look at the selloff in equities. One moving just on headlines, the maker of Aircraft Parts a democratic representative from california has asked the department of defense to investigate this company. This is a company that has been criticized by the short seller of Citroen Research who says the companys strategy is similar to leant, saying it acquires other companies and then raises the pricing. Shares taking a leg lower on that. Transportation stocks generally lower today. The dow jones transportation seeing the transport index fell below the 100 day moving average. We of these momentum signals saw it go below that and pretty decided fashion today. What is selling off in transports . Anything having to do with cars, rental cars selling off after a warning from allied Financial Airlines as well. A big downdraft in transports and industrials more broadly as well. This group is also taking a pretty bad hit today. Oliver great assessment there. Still ahead, nike is out with its latest earnings after the bell. We get a preview of how was trying to turn around cells in north america while expanding in china and emerging markets this is bloomberg. Oliver this is bloomberg markets. Time for the Bloomberg Business flash. Saudi arabia an oil Company Wants to raise 2 billion in a new bond sale. The sale the first step in the plan by the energy giant to tap markets with 10 billion. The bonds could be privately placed with investors as early as the Second Quarter. Raiseddi government 16. 5 billion in the biggest ever emerging markets sale. Chipotle shares climbing the most in six weeks after First Quarter sales were predicted to easily beat. In science made the call based on multiple data sets and proprietary models after studying same source sales during february in the first 10 days of march. Bebe could become the latest retailer to hedge its launching a turnaround as an online brand. Bebe wants to close locations without filing for bankruptcy. The computer operates 170 boutique and Outlet Stores and has no significant debt but lost 200 billion over the last four years. You guys are always having me pronounce the female fashion brands. Scarlet julie was telling us earlier about how the dow transports has fallen below a key technical level. Taking a look at the index within, if you look at the , fedex was the heaviest weighted constituent of the dow transport with a 13 weighting. It is up by. 5 . If it werent for fedex, the dow transports would be down a lot more. It is already down 5 this month. Days. Only gained five oliver still have become ibms ceo on how her companies is best company is looking to be leader. The biggest week in tv is back. Wow, watchathon has netflix . Hey, drop a beat. [ beatboxing throughout ] show me orange is the new black. Wait, no bloodline. How about bojack . Luke cage. Oh, dj tanner. Maybe show me lilyhammer. Mmm, show me last chance u. On second thought, maybe pompidou. Narcos, fearless, cooked, the crown. Marco polo, lost found. Grace and frankie, hemlock grove. Season one of. Show me house of cards. Xfinity watchathon week starts april 3. Get unlimited access to all of netflix and more, free with xfinity on demand. The dinosaurs extinction. Got you outnumbered. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Something for everyone is awesome. Find your awesome with the Xfinity Stream app. More to stream to every screen. Oliver this is bloomberg markets. Scarlet we want to turn to retail because nike will report earnings after the bell and investors will be paying close attention to what is said about future orders, especially in north america. Joining us now, the retail and apparel and analyst for bloomberg. Looking at the earnings trends for nike. Expected to report 5 Revenue Growth and you have to go all the way back to Second Quarter of 2015 to see doubledigit percentage sales growth. Is this the new normal for nike . These are the reported numbers. They take into account the fx effect. It did slow down the last three quarters. They had a lot more competition in north america. Oliver you have to look through the stronger dollar situation for them . It has been up for a while. There are fundamental issues with the company as well. Oliver investors are looking at the stock pretty favorably. Im looking at technical measures, 50, 100, 200 day moving averages. Theres something here that investors very much like. Even how investors are viewing the company and where they will see growth it looks like they are on a rally the company has grown a bit . Take a look at the last 18 months, nike for many years were the only player in this category. In the last 18 months, we had two companies, under armour and adidas taking chair from nike. Share from the key. Investors are getting more confident about my keep pushing nikeation forward pushing innovation forward. That might explain some of the optimism. Scarlet when concerned people have is inventory as well. A lot of brickandmortar apparel goods Companies LikeSports Authority struggling. What does that do to a company like nike . A company like nike which plans their inventory nine didnt have ait lot of inventory out there when the Sporting Goods retailer went bankrupt. It hurts your margin. That should be done this quarter. Investors will look more towards the next six months. Oliver when you say taking back chair from under armour and adidas, im thinking shoes and clothes. Nike has other option products here. Offshoot products here. Its very