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00:00AMERICA. THANK YOU SO MUCH FOR STICKING AROUND. WHEN WE LOOK ACROSS THE WORLD, WE TALK ABOUT CHINA AND NEGATIVE RATES. THERE IS NOT MUCH OPTIMISM. IF YOU LOOK AT THE INVESTMENT WORLD, IS THERE SOMETHING YOU CAN LATCH ONTO AND SAY THIS IS THE RIGHT TIME FOR INVESTORS. WE WON'T FALL OFF A CLIFF. I DON'T SEE IT. JAMES: WE ARE IN A VERY LATE CYCLE. THEY ARE WORRIED ABOUT THE U.S. ECONOMY. THEY ARE WORRIED ABOUT CHINA. A LOT OF THOSE RISKS DON'T COME TO PASS. LAST WEEK'S DATA REALLY SHOWED THE U.S. ECONOMY IS NOT ON A BAD TRACK IN TERMS OF THE CHINESE. IF WE END UP WITH THE SITUATION THIS YEAR THAT THE U.S. ECONOMY GROWS OK AND CHINA DOES NOT FOLLOW THE CLIP, MARKETS WILL IN THE YEAR HIGHER. THAT IS A SITUATION IN WHICH MOST INVESTORS ARE FOR. THEY HAVE BEEN STUNG. THEY ARE VERY OFFENSIVE. TOM: LET'S BRING UP A CHART OF THE DOW. CUT ME SOME SLACK. IT'S MONDAY. THIS IS MY AVRIL LAVIGNE MOMENT. WE WERE LISTENING TO HER THIS WEEKEND. UP WE GO WITH THE RESILIENT STOCK MARKET. THAT'S THE MISSIVE. DIVIDENDS IN EUROPE ARE HIGHER. DO I WANT A HIGHER EUROPEAN DIVIDENDS OR BETTER GROWTH IN THE UNITED STATES? JAMES: YOU WANT BOTH. WHEN YOU LOOK AT THE LONG RUN OF RETURNS, THEY ARE DRIVEN BY DIVIDENDS. WE LIKE EUROPEAN EQUITIES ON A MEDIUM-TERM PERSPECTIVE. IT'S THE LEVEL OF THE DIVIDEND. YOU CAN GET A SELECTION OF STOCKS THAT ACTUALLY IF YOU 5%. IN A WORLD WHERE THERE IS NO YIELD, THAT IS VERY ENCOURAGING. IN THE U.S., YOU WANT DIVIDENDS AND GROWTH IN THE U.S.. FRANCINE: THERE IS NO YIELD. ARE WE MISPRICING THE RISK? >> THAT'S A VERY HIGH NUMBER. IT WOULD HAVE FOUND APPLICATIONS NOT SIMPLY ON THE U.K., BUT ALSO EUROPE AND GLOBALLY AS WELL. THAT 30% IS DRIVEN BY THREE FACTORS. CAMERON NEGOTIATED HIS PACKAGE. THE NUMBER OF REBELS IS INCREASING IN SICK ADVOCATE NUMBER. THIS WILL BE VERY NOISY. THAT'S LIKELY TO BE A PROBLEM. THE CONTEXT IN EUROPE IS HARD. HOW DOES ONE SELL MEMBERSHIP TO A CLUB THAT IS PERCEIVED TO BE FAILING. IT'S VERY HARD TO MAKE A POSITIVE CASE. THAT IS WHAT CAMERON WILL STRUGGLE WITH. TOM: THANK YOU SO MUCH.

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Barty: Equity Markets Cheap If No U.S. Recession

Eurasia Group Practice Head Analyst for Europe Mujtaba Rahman and Bank of America Merrill Lynch Head of European Equity Strategy James Barty discuss the markets. They speak on "Bloomberg Surveillance." (Source: Bloomberg)

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