Important. This will show less productivity and how do we get the growth that we need . It is friday. Not a whole lot in our earnings. John kerry is in kabul. He will have already met with afghanistans two president ial candidates. His plate is pretty full right now. Has that job ever been more difficult . Has anyone ever had a worse couple of months . That is a great question. Has it ever been more complex than what we are seeing . Check. A complex data it is historic and correlated. Are locked up. Equities down. Negative eight. The euro is one thing not moving. Crude oil is elevated over the last 24 hours. Near 98. The mix is at 16. 66 without question. The yen is one of the great things. 101. 78 on the japanese yen. There is the german bond yield. A 104 a 1. 04. Up six advancing dollars. The german two year went into negative territory. 0. 003 . Are paying people to take their money in germany. Brent crude was 104. Up nicely over the last few hours. Bond yield, stunning at 3. 19 . s headache, putin the weaker ruble. Data check 4, 5, six screens today, but it is friday. We will not do six screens of data. Lets do front page right now as we look at the newspapers. Lets start with the first one, the u. S. Is being pulled back into what is going on in iraq. The president authorizing limited airstrikes against the new muslim militants who control a big chunk of the country. He made president obama made the announcement last night. He said it would be to protect u. S. Personnel and religious minorities stranded on a mound. The second most important word he used was genocide. It triggers all sorts of legal obligations. We have signed a convention on genocide. When we have used that word, it means we are recognizing our obligation. That is huge. I suspect the president has. He has imaging that we do not of what is going on. The horrifying Text Messages that are running out of batteries from cell phones. Between 40 and 60,000. A lot of people. It is an incomplete picture. Dropping food and water to those affected. To our second story, the World Health Organization declares ebola and International Public health emergency. Countries outside nine nine hundredhere more than people had died. It is moving faster than we can control. It will get worse before it gets better. The company to watch is the small pharmaceutical start up. They have a serum may have been developing. Cure . It a it is not a cure, but it has shown to improve things. It has been encouraged by a couple of small government agencies. Pharma companies are not willing to go into this. Government monday has been moving into this. Government money has been moving into this. The glide path of where this could go with a gets ugly, it is a longer time frame than many of us perceive. The hysteria of so much of the newspaper does not speak to the ofhematics of the expansion the bacteria or virus, where it takes longer. Theyre trying to get out front of this. It is surprising it has not spread farther than it has. I am worried that we will hear about it in china. Once again to china, it is a different story. We talked about the economic potential of africa. The tragedy here is that we are missing this is not a problem of the disease. It is a problem of Inadequate Health care and inadequate resources to fight the disease. Regulators have ordered Deutsche Bank to clean up its act. A were told to overhaul technology and compliance procedures. Is riskrs say it management deficiencies. It is good to see someone taking on Deutsche Bank. This is a memorandum of understanding. This is according to the wall street journal. 2015 deadlinee for Deutsche Bank to fix the most urgent problems. When you talk to your children, your supposed to make it explicit area you are supposed to know what the consequences are. Those are frontpage stories. A busy friday with correlations in the market. Futures, negative seven. Our film running lane is in washington. Does the president have the with hisf congress announcement yesterday . Republicans are wishing he would do more. We heard from the hawk wing of the property. Lindsey graham saying there needs to be a comprehensive strategy that addresses syria and potentially what is going on turkey right now. They are supportive of what he is doing. I think brandon hit a key point. The word genocide is a trigger word. It has an impact on the policy side and political side of things. Democrats recognize what the president is dealing with. There has been a conversation about who has the most sway in the white house. This makes me wonder if the National Security advisor does this mean policy is being driven by her . It is tough to say. The idea of intervening when Something Like this is occurring, when tens of thousands of people are in danger of being massacred, it is along the lines of what sam power has been pushing for for the last few decades. In d. C. Right now, but she was involved yesterday throughout the discussions with the National Security council. What the president realized and what i have heard from National SecurityCouncil Officials is it was a combination of things. Humanitarian crisis. There is a massacre that could occur. The u. S. Felt they needed to step in. Another factor, there are u. S. Asset. That is why the targeted strikes were okayed. Moving so quickly and they could endanger u. S. Forces right now. The president did not have an option. He described his National Security policy as dont do dumb stuff. How does this fit into that . That is the sanitized version. What has been amazing, you secretaryhow full kerrys plate is. You remember, the president gave a speech at west point that was supposed to lay out his foreignpolicy. It was supposed to be the big speech for him on a second term side. Everything that has happened over the last three months has forced him to throw out a way. Difficult because they cannot keep a long, broad term policy. That is the long game. What will happen 12 years from now. These are crises that can be put off. They have to be addressed now. Policy goes out the door when you have people on a mountaintop. President sothe long . What was the catalyst to push them to do this . A Briefing Call last night. The thing i was taken back by was they were stunned by how quickly this latest offensive by isil has moved. Siege,s happened in the it has happened so quickly and over the last 48 hours, i think they are caught off guard and they felt like this was a tipping point. Before this, i feel like they had control. Iraq is our twitter question of the day. John mccain already has an opinion. We would like to hear from you. Should the u. S. Boots follow airstrikes in iraq . Sweet us. Tweet us. Different market this morning. Lisa is qualified to look at the and correlations. The market can go down, but everything gets locked up together. What do you do as a professional investor . They have to look at the time frame. These are the times to be opportunistic. A lot of folks are looking at what is going on in high yield and whether or not there are opportunities emerging. That was one of the markets that gave us an early signal. How bad is the bloodbath in high yield bonds . It started to get nasty. Yields were up to about 6 . Fullve moved about one percentage point over the last three or four weeks. About starting to get to 10 million cumulative outflows over the last three or four weeks. Where is that money going . The am not clear where money is going, but probably onto the sidelines. Relief for the new york yankees. Leadingrms of indicator, what is the high yield indicator for . High yield tends to be a riskier Asset Classes. When folks start abandoning Asset Classes like that, it very often is a harbinger of risk off. Very often there is a correlation with stocks and other risk oriented assets. We are starting to see emerging markets breakdown. When do you catch the dark . Someone has to pull the trigger, pick up a phone, how do you get to that Decision Point . To a combination of sentiment and valuation. Areave been talking about we going to get a correction in the market . Even here, with some of the selling that we have seen, we have only breached four or 5 off of the high. Thank you. Iraqi is more deadly and terrifying. Markets are terrified as well. We are going to see how barack obama can continue to not do stupid stuff. This is bloomberg surveillance. Good morning. Look for the cell 1 00 p. M. This afternoon. The best on technology from the greater San Francisco area. This is bloomberg surveillance. I am tom keene. To our company news this friday morning. Star with malaysia. Malaysia airlines is going private. Malaysia airlines is trying to stem losses and repair its image following the loss of two of its planes. The founder of lululemon and being a fight to buy out the yoga where retailer. He has agreed to sell half of his stake. For a buyout for a least a year. The Company Behind the fica credit store may make it easier for credit americans to get loans. Certain unpaid medical bills will be given less weight. That is this morning cost company news this mornings company news. What is driving that . Compassion . A push by banks to lend more. The credit score guys. The banks can decide what loans they want to make. This is saying the internal control saying they have to a to a they have to adhere certain credit score. Futures have improved. Dow futures 44. Works at morgan stanley. She knows crosscorrelation. It is easy to see with the turkish lira jumping up this morning. We were talking about this before, but i guess it does come back to the foundations of the market, when you see Something Like this, what do you buy . Do you buy blue chips, etf . This is a time to take a step back, not necessarily jump right in, i think you have to take the time to be doing work on individual securities. Bottomup. Doing work on individual securities. That is profound and amazing. Book folks that nobody reads. Within that, you have to do the work from the bottom up. What do you mean by work . Figures about trying to out where the baby has been thrown out with the bathwater. When you get into the selloffs, you have stuff that is cheap and stuff that got cheaper. You have stuff that is expensive and is still a little bit less expensive. It is about discriminating. Taking some time. We are not there at the broad selloff yet. We are seeing money plowing into bonds. Not just u. S. Treasuries. The two year yield, it went negative earlier this morning. 003 right now. The 10 year yield they are giving away a 1. 04. The that and ecb are only part of the story. That is right. One thing that does not get talked about enough is the demand side of the story. ,e have a global savings glut so we have foreign reserves in china, in japan, and that money has got to get it to work. Does russia change the demand side . Did they move the curve to the left, where you get europe in recession and the yields drive down nevermore . That is at play here. The question is, to what extent. It is not clear that the sanctions are at a point where there is real economic levers where someone can champ cutting my gdp forecast. I do not think we are there yet. At the point of diplomatic political theater is my personal read of it. The question is i think a market is starting to say, yeah, but, who is going to blank . One story we have been following is the flight of Institutional Investors moving into catastrophe bonds. They are not in any way correlated with the rest of the market. Is that something that you advocate . Is that something you are concerned about because theyre going into risk they do not understand . Institutional that is what distinguishes Institutional Investors from individual investors. And as additional Institutional Investors can make those choices. It is hard from folks where we sit to want to be giving that advice to individual investors. Secretary of defense hagel saying 60 of 72 aid on those made it. Know a lot more than theyre letting on. We are 9 10 of the way through burning season. We will discuss that. Trattner d, jason trenner will be joining us. Tax, couple of names for inversion. Good morning, everyone. An incredibly busy morning in the markets. Lets get to our twitter question of the morning. Iraq. The geopolitics of should u. S. Moves follow an airstrike in iraq . We need to hear your opinions on this. Futures have crawled back from their losses. When we came in, they were down, we have come back up. The 10 year yield has come off its lows. That is an amazing young. We are going to talk about the curse of too much cash at companies. They wait on capitol hill the president waves. All of america waits for news. Secretary hagel is in new delhi this morning, i believe, making clear there is new information on the number of airdrops that were sick vessel to the newered on top of a information on the number of airdrops that were successful to the beleaguered on top of a mountain in iraq. Thousands of religious minorities are stranded on a mountain in northern iraq. The militants control a large chunk of the country. In gaza, the truce has ended and hamas does not want to extend it. Rockets were fired from gaza into southern israel. Palestinian militants say they will not end the fighting unless gaza and its blockade. Player,ds number one roy mcelroy, is one shot off the lead. Those are your top headlines. Golf, a good distraction. He has served to six secretaries of state as we look at our top stories. John kerry by a truce in gaza. This morning, the is lost the Islamic State moving faster than the Economic Policy can rack. Cannot react. Can react. What is the perspective of the moment as you thought about what united ages doing . What is the needed perspective this morning . To a region that is broken and dysfunctional. We cannot leave because we have allies and enemies, but we cannot transform it either. Comprehensive, happy hollywood endings here. You cannot leave, you cannot transform. You have to find a middle ground. To me, that is transaction. Identify what you can do from what you cannot. Think, the president has tried to find a balance between too much Risk Readiness and too much risk aversion and i think, on this one, with respect to trying to check isis and to deliver a humanitarian win, he succeeded, but again, you have to keep your expectation real on this. Alone. Re Prime Minister camera saying Prime Minister camera and saying great job, u. S. Can this policy work if the u. S. Goes in and a unilateral way . Look at libya. The classic case of a coordinated multilateral intervention. Took eightikes months to get rid of ted dossey. Khadaffi. Rid of take a look at liver libya today. Is not the absence of european support. The problem is local ownership. Larry summers said nobody ever washed a rental car. You dont wash a rental car because you only care about what you own. We are not going to be able to [indiscernible] want to bring them with the president said last night. We have the capabilities to help avert a massacre, i believe the United States of america cannot turn a blind eye. We can act, carefully and responsibly, to prevent a potential act of genocide. That is what we are doing on that mountain. I have authorized targeted airstrikes, if necessary, in a fight to break the siege and predict and protect the civilians trapped there. Scope ofnges the whole this. It makes me wonder for six years we have been trying to figure out what has one policy is. This is the problem that we have been ignoring it is hard for any president to have a policy. For thebeen looking wrong thing. It seems like the best we can do is have responses to things we had not anticipated in a sane and rational way. Anaren, are you seeing that . , are you seeing that . I worked for republicans and democrats. This is not just a barack obama problem. About one thing. We have been failing in matters of war and peacemaking over the course of the last 16 years. You add in the almost eight years of an Obama Presidency and you are now talking bill clinton, george w. Bush, barack obama. The last effective Foreign Policy we had in this country was george h. W. Bush and jim baker. Dealingity is, we are with a different kind of world. Others are rising and the problems, the nature of the problems, nationbuilding, historic conflicts, all of these things do not offer have to, hollywood endings. If you ask most americans what is the most significant act in obamas Foreign Policy, killing osama bin laden. Thank you. We want to bring in our twitter question of the day. This is a good one. U. S. Moves follow airstrikes and iraq . I am terrified. It feels like those are the most terrifying and realistic words i have heard about what is going on. Not going to give my opinion on that. Im going to give my opinion on a data check. It shows tensions within the markets. Negative six. Strengthen in the last one team thats. Two point 36, that is really all you need to know. Has had come it has come off of its low. Lets do the math. Lisa holds parchment from Brown University and applied mathematics. Corporate america is stunned with a good earnings performance. You nailed this the last time you were with us. Again, everybody mention money. This is one of the least told stories at the minute. We came into the quarter with folks looking for Earnings Growth of Something Like 5 . We have 90 of the companies reporting. Were going to exit this quarter with Earnings Growth of about 11 . Was the distinction down the income statement . Is it legit Revenue Growth . Growth confirms thendp numbers are higher maybe what some of the data has shown. Was in the market, as we saw the season. Where are we in the Business Cycle . Can it be lon