"bloomberg markets." mark: top stories we are covering from the bloomberg and around the world. stocks lower in europe and the u.s. as investors react to a series of geopolitical risks from the looming trade war to a potential u.s. government shutdown. drew houston from as dropbox begins trading on the nasdaq, debuting 38% of public ipo price. and you can prime minister theresa may scores diplomatic -- u.k. prime minister theresa may scores diplomatic victory in brussels as more countries consider ousting russia's diplomats over the allegations in us by poisoning case. 30opean equities, we are

minutes away from the end of the friday session and the dax in germany down by over 2%, the euro stoxx 60, 1 .8% lower. 600 down how the stoxx for the fourth day and five, headed for the second weekly drop, the biggest drop since march 2, down by 3.4% this week and investors digest all the geopolitical headlines that have crossed the bloomberg terminal. the stoxx 600 has broken through its february and into march low and it's on track for its lowest close in 13 months. have a look at some of the other big charts. investors in european banking stocks are the most bearish since july 2016, when comparing trading trends with analyst estimates, concern in an escalating trade spat with china globalose -- curb growth. analysts have been raising their targets as the economy booms. investors are thinking donald

trump's tariffs may endanger that. in london, this is the stoxx 600 banks index, the white line is the estimated price target for stoxx 600 banks. this is glaxosmithkline from the drugmaker, withdrawing from the bidding from pfizer's consumer health division. the second potential buyer to do so. it's a developer that leaves the u.s. drugmaker with dwindling options to dispose of the business. the chief executive has been shaking of the drugmaker, making the pharmaceutical division the priority of for attention and focusing on the development of new drugs. shares up by 3.8% today, shares of reckitt benckiser surged midst of and in the the traits that between the u.s. and china, have a look at the shanghai composite, is a chart

showing the chinese benchmark that moved more than three standard deviations from its mean. this chart shows a dozen go further than the standard three moves. the shanghai composite falling the biggest defined since february 9. at one stage it fell by 4.7%, the biggest decline since february 2016. the bottom panel shows the vance --line study daily advances abigail, how is looking? abigail: looking bearish. bonds trading lower and now we are looking at declines once again for the major averages. not so long ago, the nasdaq was down 1%, solar weekly basis, we are looking at very big declines. .3% awayq was about from being the weekly decline back on february 9, but that is

what we are looking up, selling akin to what we had back in february and if we happen to the bloomberg, let's take a look at the intraday chart on the s&p 500. look at the intraday chart of the s&p 500, we can see that selling action. from a sector standpoint, this is what we are looking at. in the eleven o'clock hour, a look at the imax. all the sectors were green and now that almost all of them are red. sectors, look at the declines, 1.6% for the financial sector with tech down more than 1%. a real reversal here. good points just how tightly wound these markets are. let's take a look at this reversal with an intraday chart of the s&p 500. decent gains in the morning and then a sudden leg lower, we will be digging into whether or not there was something specific, but investors are on edge to some degree around possible trade war fallout from facebook in the possibility of regulation for big tech. and investors are nervous

on something like that, it doesn't take a lot for sellers to all of a sudden step in an overwhelming buyers. this has done a bit of technical damage to the s&p 500. 339, a long-term when you're chart of the s&p 500. the year's rally well above moving day averages and in this year's big volatility, right now we have the s&p 500 back a low the 50 day moving average and well below the 100 day moving average in such a way on a bearish gap yesterday that suggests a good drop down to the 200 day moving average mark. the 50 day moving average is starting to brown down. it tells you that near-term buyers are disappearing and sellers really kicking in. this chart may suggest that we see the s&p 500 dropped back down to the 200 day moving is low, ebola february mark, he would point to a pretty serious correction ahead as investors are dealing with all of these different macro factors. mark: abigail, thanks a lot. stabilized and

yields were falling yesterday. the 10 year moving upward today, stock market not falling as much as yesterday. tohad a 24-hour period digest yesterday's big move, which ian bremmer calls the worst day, geopolitically, since he set of eurasia in 1998. that's quite a big call from ian bremmer. where do we stand at the end of this quite troubled week? isthe most worrying saying president trump is looking to do more business in some instances, heftingwan, which is sanctions on china, that's crossing a line for china. the response has been moderate and everyone is seeing this as a bluster and a bluff and clearly the way the u.s. backed away this is a positive.

as a means to an end and i think everyone hopes is going to blow over. it's not going to quite as calamitous as it might be. bond market wise, i think markets will rally pretty sharply. is theeresting in europe peripheral risks rally with them. not as much, but this was the classic risk off move. equities, itr looks that way, but you dive a little deeper and it seems as an most things are relatively been ,ragged down by the bund yield which is driving core yields down. everyone else is coming with it. mark: on call on market yields because of this threat of a trade war? i think you're a its own little world and because of such redemptions which the european

central bank has promised to put back in, is driving the bund yield down to nearly 50 spaces points. mark: that is such a key level. marcus: it looks like it was an 80 basis points and now 50. lower bonds coming off and they reinvested in very few bonds, which is why the ecb has announced they are widening out to german agencies as well. they are realizing they have an absolutely bonds to buy here that is giving yields very low in europe and thankfully, perhaps, that benefit is also spilling out over to italy. that's good news. it seems to me that the moves we have had in the states in the last day or so actually is and bad news for stocks in the long run. fromields of backed away 3% in the 10 year is down to 2.8%, that's a safer place. once things calm down, that equities can recover.

i think this volatility is telling us we've seen the highs and the stock market for the next three months, we are in a choppy range for now. accordingly and sell the rally. fore: if people are looking safety here, to some extent, if they are not entirely looking in the treasury market, we have been seeing something of a bid for gold and gold miners. over the past two sessions. that wasn't really consistent during earlier selloffs that we saw this year. it seems to be happening now. do you think that is sustained and do you think people are going to start to look to gold more consistently>? marcus: i have absolutely no idea. any doesn't seem to follow sort of logic. if youle bitcoin thing, put that in the gold difference safety proxy and moving out of regular currencies, gold is a bit like a random thing at the moment. it's a commodity its own size and i'm sure they've got some

supply and demand that i don't really understand. why i find these interesting is going back to your treasuries, they've rallied in yields to incredibly high levels, 2.35% now down to .25%. that makes me think buffett is putting all of his money in front of the treasuries. you're getting paid to be safe a moment, which means why should you be invested in risk? why do emerging markets, and particularly high-yield doesn't look anywhere near as attractive , which is why credit spreads are widening. that, in turn may be why gold is rallying. i sort of metadata. but that is the thinking, possibly. ask marcus forwe his forecast for a sporting event. i'm going to give him one more chance. england is playing the netherlands with a friendly and football. who is going to win?

marcus: no idea. we are going to send a deliberately weak rugby team down in the summer to give them some chair. mark: -- some cheer. mark: marcus ashworth, gadfly columnist. julie: let's check in on the bloomberg first word news. i'm so glad you didn't ask me for that. mark crumpton, give us the headlines. : france's interior industry is describing the suspect in phase hostagetaking is a 23-year-old petty criminal who was considered rational -- radicalized and under police surveillance. he killed three people and wounded number of others and demanded the release of the last surviving assailant in the paris terror attack. the gunman was shot to death when police stormed the supermarket. european council president donald tusk says eu nations will take more steps against moscow over the nerve agent attack in the u.k.

he confirmed that the 28 nation group will recall its ambassador for moscow for consultations. >> in these difficult circumstances, i am personally especially pleased that despite the tough brexit negotiations, the european union has demonstrated unanimous and unequivocal unity in the face of this attack. the european union says it's highly likely the russia was behind the nerve agent attack on a former russian spy and his daughter in salisbury and could see no other plausible explanation for it. -- march 4or attack attack left the two invertible condition. president trump says he may be to the 1.3 trillion -- he may veto the $1.3 trillion spending bill. it would lead to a government shutdown. he says the bill abandoned the thousand plus -- 800,000 plus undocumented dreamers.

it doesn't fully fund his planned border wall. a business empire included blockbuster entertainment come autonation, and three professional sports franchises is dead. with a single garbage truck in 1968, he began waste byagement incorporated, and 1983, waste management was the largest waste disposal company in the united states. wayne huizinga was 80 years old. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark renton. this is bloomberg. -- i am mark crumpton. this is bloomberg. buy a qualcomm's quest to semiconductor company. they are saying it is confident it can close the deal for next game. it does the chinese situation is opaque and that revenues in china are similar to the eu. for a next being, the company has been attempting to acquire a next fever china's government is

said to ask for some remedies in that situation. this morning, qualcomm extended the cash tender offer and mxp shares a little changed, but they have been bouncing around on these headlines. up next, dropbox's debut. we speak with ceo drew houston. this is bloomberg. ♪

julie: live from new york, i'm julie hyman. mark: live from london, i am mark barton, county down to the close in roughly 40 minutes time. julie: dropbox in the u.s. has debuted in that stock started trading much higher, 45% higher on the nasdaq today. alex barinka spoke to drew

houston about how the company is going to grow the paying subscriber base. the product we make is good as it can possibly be, so give them a good reason to buy dropbox. we look at that 11 million subscriber number and by any standard that the large number. at the same time, their hundreds of millions of people using dropbox and we're solving the universal need. we certainly see a lot of opportunity. we are not going to run out of people who need dropbox anytime soon. happy with that paying percentage? mr. houston: i was want to keep growing. we have 500 million registered users and there are one million office workers in the world. we are focused on how we reach more customers, how we make dropbox more useful, but it starts with building a great product. alex: who is the ideal dropbox customer? are you selling directly to the c-suite?

i know you get a lot of paid users from the self-service platform. who is the ideal person will actually pay you for the tools and products you built? mr. houston: it's companies of all shapes and sizes. the great thing about our model is we are able to reach millions of businesses because so many people start using dropbox at home and bring it into work. large everyone for really customers and folks like the nasdaq here but we also reach many small businesses and everything in between. alex: i heard you talk a lot about teams and selling it to teams and more of a focus on the collaboration tool that are fairly new for dropbox the you have been developing. how do you think about selling it to teams versus selling to individuals as you kind of had your prowess in the past? mr. houston: people bring dropbox from home and to work and our model is pretty different from the traditional enterprise software sale. will it to say we are applying the consumer internet playbook to business software.

that means the hundreds of millions of people using dropbox bring it into their companies and we find that often, before we make a sale or before we talk to i.t., there are hundreds, sometimes thousands of people actively using dropbox and often paying for dropbox. we are able to take advantage of that scale that came from our consumer groups and our premium model to drive massive adoption of businesses. we are really excited about it. alex: when i think of facebook focusing companies like google or microsoft with its office suites, they have had to build up a salesforce and build out their marketing team to sell the newer enterprise product, whether that is cloud or other tools that you compete with. is a sales team in your future? right now, you don't depend on that for money coming in. at what point with a view to pinpoint where you say we need sales folks to sell into the sea suite? greatuston: we have a sales team, but what we are to do is a really efficient. we have had to of businesses

actually using dropbox so we are able to get a lot of leverage because our salespeople are really talking to companies and talking the cios who already have a ton of dropbox adoption. we end up spending about half as much on sales and marketing as a percentage of revenue is the typical company. alex: that's how you intend to operate. mr. houston: we have 500 million salespeople, because they bring dropbox to work and the skilled came from our consumer groups and the viral nature of how we grow. alex: talking about would market investors before you sold the shares, one concern is the fact that even though revenue growth is strong, more than 30% on $1.1 million in revenue, that did come down from the revenue growth in 2016. why did that growth pullback? what are you expecting, going forward? mr. houston: we were the fastest sas company to a $1 billion one

rate -- run rate. we are addressing in the that every team and every company in the world has. is a lot more people that need dropbox. julie: that was drew houston of dropbox with bloomberg's alex barinka. of dwshe chief executive discusses what deutsche bank asset manager will try to achieve as it starts public trading. this is bloomberg. ♪

julie: live from new york, i'm julie hyman. live from london, i'm mark barton with the european close roughly six minutes away. deutsche bank offered 26% of its asset management unit today on the front for stock exchange. the chief executive of the unit spoke to bloomberg's guy johnson. deliver on the promise we give to our investor,

they are important for management to build trust with we will workand very hard as a team to deliver on our promises. growing, we will be working with our partners, i with those who develop product with us and came with this dealer with a very significant order. talk to people i have not been able to talk to before. the want to join us and develop new product. the idea is to strengthen the on ourse and deliver cost income ratio target. and grow the business. desk, again. just try to develop the business. >> that is what i should've said, which flight are you

taking and where you going? annuale a 3% to 5% target of net new money. is it going to be hard to get to five, do you think it's want to be nearer the three? give us a sense of how difficult is going to be to make that range. >> we are still in a transition period as a new company. we went to difficult times in 2016 and 2017 was very satisfactory but we still have a lot of work to reboot was some begin inand i say we the 3% and end up in 2020 in 5%. that would be the objective. rebootk is really to some channels of clients that we are close with because there was a fear of the uncertainty -- i think now it is time to build on the

stability we are establishing right now in being listed, and that will take some time just to reboot. mark: that was the chief executive of deutsche bank's asset manager speaking to bloomberg's guy johnson a little earlier today. take a look at where european equities are headed as we look to the close. three minutes and 58 seconds away from the end of the friday session, another day of declines, the fourth day. european investors digest the repercussions of a possible trade war. three minutes from the close. this is bloomberg. ♪ retail.

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services, the five day biggest weekly drop since march. the second biggest weekly drop in a row. we are digesting what has been a heavy geopolitical week. this is sterling. an interesting charge given the boe yesterday. nothing happened, except for the split. a right height from the bank of england -- rate hike from the bank of england in may. it will not be the last this year. the bank sees another increase seesvember -- danca bank another increase in november. that is the green line. 15 out of 41 respondents in the bloomberg survey predicting at least