i'm saying that blackrock sells the concept of liquidity. you pay more at blackrock. when you go in and you go into at blackrock, the h.y., you're paying more basis points than you are at vanguard. and you know what it adds up to? just on the passive stuff, where all you're using is a dumb machine that just tells you, here's a lot of money, go buy the index. it's a dumb machine. the state can do it like a goddamn highway. and they've got to use it to help the homeless people. >> i've got to get larry. >> seriously. i want to add one thing. >> larry deserves a chance to respond. >> he will. there is no liquidity. that's my point. and that's what's going to blow this up. and now i'll leave it and you answer. because i don't think there's liquidity. >> where do i begin? >> i was going to say that when you started. >> i did. let me talk about carl's characterization of the letter. >> when & you know what, larry? at the same time, why don't you talk about the genesis of the letter letter. i don't think people know what the genesis of the letter came from from a conversatio

we are joined by the head of the fixed income at blackrock. the big issue today is that the ecb will get its money. it looks like they are going to get the money and it looks like the whole bridge loan was set up just to get money. >> to some degree the current bridge loan is aimed at that day and the ecb. i think it is quite central that the ecb helps to finance the greek economy we've seen what happens if that financing is in question. so i would say from that perspective it is totally natural that that line would receive all of the focus. jon: i remember in january and qe was unveiled and they said we can only unveil so much of the debt and greece was excluded for that reason. the question will be increasingly asked -- how long before the ecb start buying greek debt? >> it is hard to put the exact number of days but draghi has eluded to the theoretical possibility and it would belong to completely excluded once the debt has fallen under that threshold as they lent money to the portuguese government to have an investment grade rating so it i

oestrich from blackrock. turbulent times. greek leaders concerned about volatility.e have a special report when we return. ♪ angie: leaders are disturbed by recent turbulence in the energy and stock market. they are winding up a summit in ufa. brics nations took a close look at what was happening around the world, from china to high volatility in prices for raw materials in a number of major countries. most keenly watched was the chinese president's reaction to the stock market in china. he says the country can handle it with distance from russia. china plans to lift restrictions and allow the country to invest in russian bonds. russia says it is ready to buy chinese securities. nations plan to use their own resources to protect against volatile market conditions. bank becoming a reality? china, australia, completed the process complete the new bank with a total volume of 200 million u.s. dollars. they will soon become equitable according to the russian president. it will start running large-scale projects in transport and infrastructure. the brics plans to come up w

peter hayes from blackrock.low-up to our police 55-year-old classic "to kill a mockingbird" is out today. there are big numbers around "go set a watchmen" and we will bring them to you next. ♪ matt: let us take a look at the top stories. the is a lot of news, but i will kick it off here in new york city. it is going to pay $5.9 million to settle the erik garner case. he was the black suspect who died after being put in a chokehold by a police officer. his family is accepting the money to settle their lawsuit. the grand jury decided not to indict the officer. i will rid the that. -- repeat that. the grand jury will not indict officer. a major deal in the air for boeing. two dozen 767 cargo jets. the planes will be priced at $5 billion. fedex is likely to get discounts. they are good customer. facebook set a record. the social network rose two point 7% yesterday and hit the 2 billion -- $250 billion market cap the fastest. it is trading almost five times the s&p 500 average. remember when it dropped below $25 and

we'll never be a pimco or a blackrock.se once you're in the fixed income markets once you get to be the size of the market, you are the market. the only way you can outperform the narkt is -- market is using derivatives because in the cash only bond market you won't be able to source enough product. we don't want to let ourselves get there. now like i said the whole market is far away from that trade. we do not use derivatives currently in the main line products at doubleline. there are some we can, which have a higher risk profile and attract a much different investor. but in terms of transacting we had no issues. >> what do you make of ken griffin doing a full page in "the wall street journal," yes, it's true that the five largest banks on wall street are less engaged in creating treasuries and bonds, however, there's a new generation that have come to the fore. this is a biased point he's making but -- >> right. right. >> but is there -- >> he -- market makers. >> there's the thing. you have had a couple of big players.

this is bank of america and blackrock get set to report tomorrow before the bell. >> i'm not sure sf you said jpmorgan. the top line was a little bit of a miss pape little bit light. expense control was very good. i thought it was a mild positive. it wasn't stellar but it was absolutely fine. some of the investment bank revenues down. i think the expense control was very good. the story is well intact. if they are a $6 earnerish give or take i don't think the stock's expensive here at all. happy to continue to own it. >> goldman sachs thursday. right? we've said it. the last quarter was ridiculous. i can't tell you what the stock's going to do post-earnings because it always does funky things. last quarter was crazy great. rallied and then sold off. and now subsequent rally. i think you're going to see another great quarter. i can't tell you what the stock is going to do but i still think it's headed to 240 at some point later this year. >> did you get any read on morgan stanley which is i think your favorite? >> morgan stanley i think is one of the better names out there. jpmorgan i

. >> reporter: current and retired federal workers lined up in the lobby of the blackrock arts center in germantown this evening to ask questions of the staff from the federal government's office of personnel management. not one, but two data breaches at that agency have made vulnerable the personal information of nearly every federal government worker. >> this may be one of the blessings that can come out of this is that we finally respond as a nation. >> reporter: inside the auditorium, maryland congressman john delaney who sponsored the event echoed the concerns of many of his constituents. >> we clearly underestimated this. we clearly underinvested in this. congress didn't take it seriously. the administration didn't take it seriously. the agencies didn't take it seriously, and the leadership didn't take it seriously, which is why we had this breach. >> reporter: maryland attorney general brian frosh told the crowd that he himself had been the victim of identity theft. >> it can happen to anybody. >> reporter: for many, it was the first chance to actually ask questions about the o

we'll get to carl icahn speaking with blackrock ceo larry fink.ng to take a quick break. stay with us. >>> welcome back. it's been a hoppy after hours session here. netflix hopping up almost 10%. intel up sharply 2 after hours. this on results. earnings results in the second quarter for both companies. netflix beating on earning and posting strong guidance. that's despite disappointing a little on revenue. intel beating on both the top and bottom line. shares are off the initial pop but they're still higher by about 4 1/2% after hours. coming up here on cnbc billionaire investor carl icahn and blackrock's larry fink debating activist investing on the delivering alpha stage. stay with us. >>> welcome back. it's been a busy day here. markets didn't quite know what to do with it. finishing roughly flat. and amazon by the way, doing its prime day to celebrate its 20th anniversary. now that we've been able to digest both the sales numbers and the social media reaction, was it a success? >> i mean, it seems sort of like a wet blanket. it just hasn't bee

jon: i had someone from blackrock on last week saying they looked into the greek debt.y thought maybe the headlines were overly negative. did you look at it in a similar fashion? guest: we haven't been active in greek debt as wall -- at all. we don't take positions. jon: would you look at spain and italy that falls into your universe. when you look at the message they have sent, reflective now in the polls, do you look at spain and italy more differently? guest: we have always thought about them differently between one another. spain has a more effective reform program and italy has been a little bit more trouble. the periphery spreads have become attractive. we have been long on some of the spreads on a short data basis. we will be the ones to benefit from that political improvement. jon: do you go long on italy over spain? guest: we prefer one or the other but it is a fine margin. jon: the liquidity premium in italy -- is there one? guest: i think the premier are very hard to detect. we have many equity investors who want to earn the liquidity premium. you have to ass

jonathan: blackrock joined you, morgan stanley, all of this was calling it a bubble.hat happened in china my point is about leadership. they're losing control and they're going to do something about it. i look at your, the only leadership that seems to be there is from the ecb. that is still a problem, is it not? bill: this is a worrying parallel. the problem europe has is who is going to step up to lead the necessary cooperative negotiations to get her healthy? there is no one that six to mind? is it merkel? it is not going to be junk or -- it is not convey juncker. -- it is not going to be juncker. it is not mariota draghi's job. that is a big issue. jonathan: a big thanks to bill blaine. the to come, we head back out to athens. we will speak to an economist who thinks if the ecb raises ela, the central bank would be a bank run. we will be back after a short break. ♪ jonathan: good morning and welcome back to bloomberg tv. at european headquarters right here in the city of london. 30 minutes past the hour. let's get you up to date to wear stocks are trading here it

erik: i quickly want to touch on blackrock only because we have not had too much time to go through the earning statement but one thing jumped out. they declined. they also fourth a quarter trillion assets under management that it does not happen very often. this is only the third time in two years -- more than two years, i think nine quarters where we have seen blackrock drop. i wonder if it is something about the appetite for etf's which has had been a huge growth or at fort investors are cashing out and stockpiling cash on the sidelines waiting to see what happens in this very unclear market? michael: i think this quarter had the most chatter about the timing of the fed and maybe that has played into investors wanting to step back and say when the fed actually moves. erik: thank you very much. michael moore covers fostered for bloomberg. coming up, fixing america's road. matt: speaking of my cynicism, u.s. infrastructure. funding is about to run out. once again and it surely was not high enough to begin with. stay with us for look at that. ♪ erik: you recognize that building? it is t

thinks it is a particularly dangerous proposition, but other people have found, blackrock argues that of different sides to this. fund managers are taking mitigate sales, arguing for example that they can go in and buy what everyone else is selling. they may be the other side. they want to be the other side area and fund managers with cash want to create liquidity down the road. you got it. you know what, right now, bank of america analyst found that ofost a record proportion managers are holding record amounts of cash now as they try to their for the next dislocation, preventing it from happening soon, ironic way. scarlet: the corporate debt market has grown so big since the federal reserve cap interest rate so low 2008. -- in 2008. to what extent will increase liquidity, only because you don't have the distortion that low interest rates create? fantastic point. liquidity cuts two ways. prices can get too high and scare people. people on the sidelines will not want to go into a market that feels overpriced. but if someone wants a bargain, they start seeing them and they will be more

bankers form companies. .ne such one is home partners they got a $500 million equity investment from blackrockn by a former goldman sachs executive who is ahead of their european mortgage business, william young. he says there seems to be a demand. people want to be in a home and eventually own a home. this is a bridge type of product for them to do that. pimm: what kind of premium to the get to charge as a result of the program versus what you would get if you had to buy the house outright? betty: it depends market to market. all property is local. they say they track the increase in home prices in that neighborhood. there were examples given of a home that was purchased for $420,000 in one area. if you waited five years to buy it, you be paying over $500,000 for that same home. you have the option to say, i don't want to buy it. to walk away. -- anotherartners company that does this as well . they say you can exercise that option and we will reread the home to someone else -- re-rent the home to someone else. pimm: the rising value of the house. if the house were to decline in value perhaps

erik: not long ago, i asked ceo of blackrock who we consider to be his biggest competitors and at thatgoing to say pimco, i was fishing for pimco and he said no, i didn't jpmorgan asset management and goldman sachs asset management are my biggest competitors. i think he is thinking more institutional than retail. what does that imply as far as the future of the relationship between a buy side firm -- an exquisite buy side firm like lackroc -- like blackrock and jpmorgan and sachs while providing massive asset management division? devin: an interesting conversation. i think jpmorgan -- all the big banks really have quite a big emphasis on expanding the asset management platforms. coming back to that aim of these are capital and very recurrent businesses that keep the lights on when trading is volatile and they are below what they need to see, so longer-term asset managers are evolving into a similar box you have the alternative asset managers like blackstone and kkr and the big institutional money managers that are more products going in the same direction. i think the big banks under s

there is a lot of confusion about the economic data, but frankly there are just as many banks, from blackrock or of america saying there's plenty of data to justify a rate hike. a rate hike in search of an economy to match, we get a couple of data points that could clarify whether we are moving towards a september lift off, and the next leg of the expansion is largely going to be driven by housing and consumer spending. we have retail sales on tuesday, consumer sentiment on friday. these are all things that are going to be very important in determining whether we have the economic momentum that will give them the confidence. it's still the jobs report. that's important because the supporting consumer spending. like she is only hoping to raise rates one time this year. if we look at the s&p and the dow, you can see that both of them rose during her speech in her q&a. the equity markets aren't worried that we are going to see too much fat action this year. i think one of her main concerns is that inflation isn't high enough yet. where not at full employment and inflation isn't high enough area

. >>> in the next half-hour, blackrock's head of municipal bonds peter hayes will join us.ll find out what's at stake for his investors and where he is looking for yield these days. >>> we're going to tell you why analysts are bullish. >>> transports rallying this week by over 4%. are we headed higher? don't go away. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? >>> welcome back to "power lunch." shares of fluor are down 8%. the second quarter profits fell due to weaker demand. the company also announced it's agreed to sell half of its spanish operations to a leading spanish construction company. at least six brokerages have cut their price targets on the stock to as low as $52 a share. shares are down 22% so far this year. >>> let's look at the transports. the dow jones transports mr. inis a that up 4% this week. what does that really tell us about the overall markets? is this a leading indicator suggesting that st

jeff rosenberg, blackrock's chief investment strategist, spoke to matt miller and olivia sterns earlierxplained why global markets may not be as effective as dramatically compared to situations we have seen from greece in the past. littleou have to take a bit longer term view and look through some of the short-term volatility as to what the lasting impact might be. thatve long had the view greece in this situation, while it captures all of our attention and the headlines today, really doesn't have the same connection to the global financial markets that it did back in 2009, 2010, and 2011, when greek issues like this could cascade into a much bigger systemic risk. it is a very fluid event, as you are reporting on, very hard to see exactly how that is going to play out. but the spillover effects, absent a very disastrous outcome, are probably more contained than we have seen in the past. olivia: i think the key spiller spillover affect everybody wants to know about is whether what is happening in greece has the potential to make janet yellen holdback the rate hike. jeffrey: exactly, and

he put cheryl mills, a hillary clinton confidant, on the board at blackrock. what she knows about investing is another story. i never thought of her as some sort of person i want watching over the management of my money. he's been going on a year, and he's a big hillary clinton supporter, and basically, she pulled this page from larry fink's speeches over the past year because i'll tell you, neil, it's easy. it's an easy park. she pisses off nowhere except a band of -- neil: i understand that, but have we seen a discernible study where you can go when you raise the cap gains rate, you put a chill on investing? the biggest example i remember from her husband, bill clinton, is even though he raised the top rate at the time, he lowered invest -- >> later. >> took that rate down to 20%. and a boom fold. >> listen, one of the good things that clinton did working with republicans in congress, the good things was they did lower capital gains taxes, and maybe i'm missing something, but when they lowered it, the economy did really well, and the markets took off. and we

for us at blackrock what that's meant is looking deeply at the market structure and fixed income. and one of our observations is that the infrastructure of the market over-the-counter market based on firms taking principal risk and keeping securities and inventory and finding the other side at a later time feels what dated. freshly in the context of the rapid growth of the fixed income market. we talked about the issuance over the past several years. so what we've then done is look at many other securities markets and ultimately we believe that better use of emerging technologies such as electronic trading, such as broadening the types of trading protocols that are used in fixed income allowing all market liquidity where buyers and sellers can create more points of potential transactions rather than the traditional client to broker dealer single attraction collectively, we believe that all of those depths can incrementally enhance liquidity. i would echo earlier what was said each of those are incremental. one of these single steps is very easy to be a little bit dismissive of it

our morning line-up, blackrock's chairman and ceo larry fink and esther dyson and christopher elman chiefofficer at the california teachers retirement system. it will be a great day of coverage tomorrow. we're a few minutes away from the european close. mostly green today. simon is here to wrap it up. >> in fact we move positive throughout the session as wall street opened in positive territory. so you had a week of gains in europe that's taken the broad market up. almost 7% during that period of time. deutsche bank putting it there's the perception that greece has been removed, as a major catalyst, a risk through the rest of the summer albeit with elections in the autumn. we'll see if that turns out to be true. the bank of england aligned with the fed in raising interest rates, the governor there, the canadian running the bank of england suggesting the point at which interest rates may begin to rise, is moving closer. once rates begin to rise we expect those adjustments to be at a gradual pace and to be of in a limited extent. but you did see it draw some of the uk home builders lower. h

so much so blackrock said the corporate bond market is broken. it decreased 77% since 2007. that's been aided by the volcker rule and other rules put in place by dodd/frank. title 7 was a derivatives rule. this, again was highly a little bit sized in congress and then when the implementation period occurred. it requires reporting of derivative transactions, clear them at clearing houses, entirely new registered entity, and margin on unclear trades. these rules were rushed, put through and forced down everybody's throat at five rules a week just because the only way that you can implement ideology is through 200 and 500-page rule makings. this also revealed attention that is there to this day. which is the chairman at the time chairman against her wanted to overlay the swaps market in the mind-set and the mold of equities. but the staff only understood futures. equities are a horizontal market with many trading platforms. futures is a vertical market. so there's a disconnect in the rules which made it very confusing, which caused over 100 no action letters to be issued. and b

blackrock beating the street on the top and bottom line.irm's diversified business model helped to overcome volatility during the quarter. and pnc results topping consensus consensus. a key component of profitability that cramer said he was going to watch for. is that what nim stands for? >> yes. it was good for wells. people didn't think wells was good. people really misjudged bank of america. this is what the company looks like without a justice department. >> i look at all your tweets. you tweet a lot. i find lots of nuggets. but you answer people you do this, you do that. to find the nuggets i g through a lot of your tweets cramer. you know what i mean? how many have you got now? you're well over 100,000. >> 900,000, yeah. it's all right. >> i see them all. your viewers even think other people do it for you because it's the middle of the night. >> who else would wake up at 3:00 a.m. and watch the merkel conference? >> it is him. >> i know it's him. i've seen it happen in realtime. >> i got up this early today to go onto this amazon thin

we'll hear from blackrock's larry fink as well and carl icahn. so you will not want to miss that.gain, this wednesday. coming up next, oil has gone up 13% in just the past month but this man here has ab undn under radar play that could get a boost or that decline. plus it's all-star week and we've got your all-star stock picks, names that could be a home run for your portfolio. stay tuned. the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? >>> welcome back to "fast money." stocks sta

we have blackrock credit and morgan stanley, all these institutions and the government is fighting thisunds. ryan: year on year, nearly 100% rise in share prices. yesterday or the day before yesterday over the weekend we saw the government step in and try to prop things up. that did well for couple of hours. ryan: what we want to watch is the greek finance ministers will meet at noon london time. that should be interesting. it will be the first appearance of greece's new finance minister. he is well-known by everyone there. and in addition were will have the leader summit. this is -- that is where mr. tsipras resurfaces. caroline: we have seen money move into german debt markets. contagion limited although we are getting some eta -- data. maybe this is taking its toll. ryan: the assumption is it would remain unchanged. caroline: the german chancellor and francois hollande have worn that greece is running out of time to save its spot in the euro. ryan: striking a deal after greeks voted against any further austerity. what is the prime minister's next leg? let's get to hans nichols. guy j

blackrock -- expect share prices to rise. stock prices not having an economic impact.hammed l on area and -- soft landing dynamics. the rocket collection is impacting the third quarter, but it is not going to derail china. shares down or present in shanghai. -- shares down 4% and shanghai. guy: 7% -- better than anticipated. talk us through how much of this was stimulus. what exactly the stimulus did. >> so there are two factors behind the 7% figure. firstly, substantial stimulus. a first-rate cast at the start of -- three more rate cuts following that. reduce the debt burden on local governments. all of that has an impact. second -- second factor, second quarter was a very good quarter for the s&p market. we saw an explosion in trading activity. that has been very positive for the financial sector. equity brokers. china's banks. that is had a positive conservation to the financial sector which we are seeing reflected in the better-than-expected gdp numbers. the issue for china's policymakers is what happens next? the equity market boom is over. the markets corrected s

that is what the chinese markets are involved in, and mark mobius among templeton, blackrock, ubs, perhapsction is not over yet. are gettinga shares close to the point where prices are so attractive, they may need to add to their longer-term positions, but right now, he says we probably haven't hit the to-dayyet, despite that rally of 10.5% last thursday and friday. there are numbers that back that sentiment from mr. mobius. that 30% selloff in shanghai -- the shanghai copper is up nearly 90% in the past year, and it is trading at 50% above its five-year average valuation. a shares are among the most expensive in the world's 10 largest markets. the shanghai comp trades at about 20 times earnings, well above the 13.5 times average of the past five years. any investors have been looking at the average evaluation -- the median valuation of the average stock in the a share market. is, because the banks, the big caps on priced so low, they kind of skewed the pe for the market as a whole. ,eople look at that median pe and it right now is trading at 57, much higher than hong kong at 13. keep in m

tom: thank you, jeffrey rosenberg with blackrock. that was a nice break from greece greece, greece. go back to greece and it's forex induced the euro at 1.10 and not weakness but a.109 .75 and the euro swiss was a little weaker in the last few minutes. in this hour, francisco blanch on oil and mohammed elirian on greece. stay with us. . . >> this is "bloomberg surveillance." tom: after the resounding no vote, there are less reasons to compromise. merkel and eu leaders will listen one last time to stsipras in brussels. the chinese government scrambled with the air back in the bubble. chinese stock markets move from correction to bear market. and oil rolls over. in this hour, a conversation with merrill lynch's francisco blanch. good morning, everyone, we are live from our world headquarters in new york. i am tom keene. joining me brendan greeley and vonnie quinn. fragility in the markets literally moving headline by headline. brendan: headlined by headline, but the big story is the lack of movement in spain, portugal, and italy. i am looking at the generic five-year and not only down

maryland congressman john delaney is hosting an event for the blackrock center for the arts in germantowntheir new hit "all night," pop rockers r5, plus your questions and comments when the co-hosts open up the inbox, all next on "live." [captioning made possible by disney-abc domestic television] [applause]

larry fink was making the case of blackrock making the case that we need more longer term responsiblet of companies and not play for the quick buck. just to set the stage, let's do a quick recap of the history of cap gains taxes. we haven't had a differential between the top income tax rate and top capital gains rate. after the tax reform in 1986 they were the same at 28%. bill clinton came in after his balanced budget deal with republicans. we had a renewed differential. capital gains of 20. when george w. bush came into office both rates came down. 35% and 15% for capital gains. under president obama's fiscal cliff deal 39.6% honored income and top rate of 23.8% on capital gains. hillary clinton is going to propose a gradation. assets held less than a year is taxes ordinary income. she is looking having a couple of levels. not less than a year but two or three years and longer-term level. is the debate going to get more attention or is donald trump? that is the political question of the week. >> he seems to be holding that ball when it comes to attention. we want to bring dr. j into

rick reeder from blackrock. and adam parker u.s. equity strategist at morgan stanley. we're having a high-level meeting here on fixed income and bond strategy. mr. fixed income. >> i think we're inching our way. they opened the door to go in september. i think you tweaked that door open a little bit. we think they're going to go and the fed's been pretty clear. and they expect to go in 2015. the statement today may changed a couple of words. people are talking about the word sum was inserted. there's a lot of diagnosis -- i think the odds are 60/40. >> up 132 points -- the dollar mixed. what is that telling us? >> i don't think i learned anything. >> i think we're still in that pocket. we're constructive on the u.s. equity market. i've got that up and bottom of earnings up too low. a likelihood the u.s. economy's a little bit better in the second half and the first half. and despite the fact we're about 1% from the all-time high in the s&p. i don't think sentiment's -- >> is any of that going to change, adam when we finally do get a rate increase by the fed. >> my view

so much so blackrock said the corporate bond market is broken. it decreased 77% since 2007. that's been aided by the volcker rule and other rules put in place by dodd frank. title 7 was a derivatives rule. this again was highly politicized in congress and when the implementation period occurred. it requires reporting of derivative transactions, clear them at clearing houses, entirely new registered entity, and margin on unclear trades. these rules were rushed, put through and forced down everybody's throat at five rules a week just because the only way that you can implement ideology is to overrun people with all of the policy that's set in forth in 200 and 500-page rule makings. this also revealed attention that is there to this day. which is the chairman at the time chairman gensler wanted to overlay the swaps market in the mind-set and the mold of equities. but the staff only understood futures. equities are a horizontal market with many trading platforms. futures is a vertical market. so there's a disconnect in the rules which made it very confusing, which caused over 10

blackrock, ubs, and templeton have said they are not ready to buy yet. >> we had a bubble in china fueledtors borrowing on margin. the government intervention is not over yet. they are trying to make sure that people are not using multiple accounts. in terms of absolute value, we think that it is interesting. however, you have no real idea of where the market is going to be. we think that probably there is another fall to come. it looks as if the government has stemmed the tide. anna: regulators at central banks have had to be very creative when it comes to dealing with the fallout of the financial crisis. quantitative easing was the product of some creative thinking. this is china's answer to a falling stock market. saker: it is unusual. all we've been hearing is if you step back from the greek crisis and what happened in china, what we are getting into is this super cycle of very low interest rates. the longer it is extended, the more unsure i am of how we are going to come out of it. this is not normal economics. one looks at the bond markets and wonders what is going to happen in the

today's fed announcement we're joined by jeff rosenberg, chief investment investment strategist at blackrocke are some expectations that maybe the fed will raise rates in september. what does that mean? >> it means the end of a very long period, unprecedented period of low interest rates and uncertainty for financial participants for what that means. september raise shouldn't be a huge surprise. markets are generally pricing that in. not exactly on september but between september and december there's well expected movement that the fed will raise interest rates. what's the bigger issue is what happens after that? and this point has been made many times that it's not about when they raise rates first but what happens after that what is the full pace of increases. importantly back earlier this month in semiannual monetary conference she made a point that was clear and articulated the sooner but slower path of interest rate increases. that's raised our expectations. we had expectations for a while that september would be first liftoff but you have a gradual or more measured approach to raise in

blackrock chairman larry fink. then york capital manager jamie dinan. and christopher allman.g to pensions and whether all the yields can hold up. all this starts at 6:00 a.m. eastern time. >>> coming up earnings alert from wells fargo. set to report the numbers and reaction in the street. plus squawk market master jeremy siegel says dow 20,000 still possible by the end of this year. he'll join us next. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business. why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress: that whether times are good or

. >> should i think of blackrock as a multi-asset manager now?re you're going with equities? >> we're all across the board. >> i was going to say. >> we've got very strong teams and equities. >> so you say. >> i think the results speak for themselves. >> you don't look too big to fail. >> i'll leave that to what other people decide. one thing we find most exciting in times of our outlook in the markets is the -- >> that was very deft on your part. look at you. >> you know looking at the trend towards building out smart cars or technology-enabled cars we've seen a huge trend among some chip makers. although they've been sold off the last couple weeks. that are levered towards building these smarter technology. >> speaking of cars we've got to go because we have uber coming up. >> excellent. >> great to see you. >>> by the way, we've got deal news at this hour. st. jude buying thoratec. about $3.4 billion. should mention it's a 35.4% premium to the closing price on july 17th. $63.50 a share in cash. thoratec mechanical circulatory -- >> many invasi

here's blackrock's larry fink at the delivering alpha conference yesterday. >> i would be surprised if september. i think this is -- they said they want to raise it. they've talked about it. they've already said if the data comes out in the zone that we're in they're going to raise rates. they want to begin that path. >> joining us now, allison deans. alex young. and of course our guest host this morning roger altman. and allison, alec welcome to both of you. alec, what do you think? we know the fed is now kind of talking a much tougher talk. do you think they will actually raise rates in september? >> we're a lot more focused on the pace rather than when liftoff comes. we've been a little more dovish. my guess is it probably pushes. the trend is the street continues to -- >> december or 2016? september, december i could understand. not a big difference between those two. >> probably december. but our focus is more on the pace. we've taken a look at how does the market do when you have a gradual pace of tightening. it does pretty well. 12 months out it averages 11% gain. when you have

so much so that blackrock has come out and said that the corporate bond market is broken. if the corporate bond market has de vriesed 77 -- decreased 77%, and that's been aided by the volcker rule and other rules put in place by dodd-frank. title vii was the derivatives rule. this again, was highly politicized in congress and then when the implementation period occurred. title vii requires reporting of derivative transactions, clearing of these transactions at derhode islandtive clearinghouses trading on swap facilities which are an entirely new registered entity and margin on unclear trades. these rules were rushed. they were put through and forced down everybody's throat at five rules a week just because the only way that you can implement an ideology is to overrun people with all of the policy that's set forth in 200 and 500-page rule makings. this also led, it also revealed a tension b that is there to this day which is that the chairman at the time, chairman gensler, wanted to overlay the swaps market in the mindset and the mold of equities. but the staff only underst