the idea that they need goldman or morgan stanley -- if blackrock and another wants to trade with each other -- this deal providing great service to make markets work, and absent that the whole capitalist system will break down? i don't find that. you are telling me that you need multi-chile dollar institutions for blackrock to find somebody at vanguard to trade with? i don't buy that at all. >> the timing of this plan is striking. you said in february you were going to do it but it comes right at this transition and it matches up with some things we have heard from president-elect trump. for example, backing off on smaller banks. have you and your colleagues have discussions -- had discussions with the transition team or people close to donald trump? neel: we have not. no contact with any of the campaign for the transition team. we have heard from members of congress on both sides the aisle who said they want to address the two big -- too big to fail issue. i'm optimistic. i think there's a possibility that could be a compromise that everybody could get behind. joe: that was minneapol

and blackrock. the company -- spatat arouse anger -- the arouse anger.oomberg business flash. take anotherd to look at european equities here and in light of, you know, the highs we hit yesterday in the on., on the dow, on the s&p, the nasdaq, the russell 2000, we are a ways away from that here in germany. the dax is far off of its 12,000 in 2014, 2015.k i believe the ftse high was also around 1999 and we have not got that back to that yet. we are also not looking at volume that we have seen recently. this is a critical function. put your sector up here. in can the average volume green. projected volume in the bloomberg is always spot on. it is just not going to make it. we are seeing lower volume and you can break it down into sectors and see where that lower volume is from. morevolume in banks and volume in basic resources and utilities. it is a very interesting function that helps you break down a lot more than the price action. in, with thatit hand that comes across? matt: just the hand? that is the adams family. [laughter] guy: that is what we

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets rallied. anthony: welcome back to "wall street week." the market's reaction has been overwhelmingly positive. but our next guest seems to think it won't last. gary: david stockman, when you joined us a month ago you warned viewers to go to cash. you warned the markets would be volatile. but you are concerned despite what mario was talking about, your main concern is what's going to happen in terms of the deficit. >> we have

. >> pnc with their blackrock, even though they have that investor larry fink.y will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets donald trump win the markets rallied. whythen get worse?nks taste chalky? introducing protein shots from 5-hour energy. protein shots from 5-hour energy are smooth and tasty, and still deliver 21 grams of protein with 100 calories. they're great for workouts, no matter how you work out... whether you're going for reps... or laps... or distance. you gotta try it... period. protein shots from 5-hour energy. great taste. 100 cal

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets donald trump win the markets rallied. ♪ ♪ donald trump win the markets rallied. it was always just a hobby. something you did for fun. until the day it became something much more. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with lib

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets rallied. you do all this research on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™. liberty mutua

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets rallied. dad and son: we just finished dinner and it was time for homework. he hates [i hate] homework. son: it makes no sense. dad: i don't know how he finds anything in his backpack. son: i can't find my backpack. dad and son: finally, we found his [my] assignment. dad: he rushed through it. i wonder if he even learned anything. son: i wasn't going to get it right so i just wanted to get back to playing my video game. at

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets donald trump win the markets rallied. i found a better deal on prescriptions. we found lower co-pays... ...and a free wellness visit. new plan...same doctor. i'm happy. it's medicare open enrollment. have you compared plans yet? it's easy at medicare.gov. or you can call 1-800-medicare. medicare open enrollment. you'll never know unless you go. i did it. you can too. ♪ this is my retirement. retiring retired tires. and i ne

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the dona trump win the markets dona trump win the markets rallied. we ship everything you atcan imagine.n, and everything we ship has something in common. whether it's expedited overnight... ...or shipped around the globe, ...it's handled by od employees who know that delivering freight... ...means delivering promises. od. helping the world keep promises. on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you shoul

i mean blackrock, i'm sorry. meaning what they want is passive money managers, and blackrock stock is a better buy. i prefer to be in -- frankly, if i want to be in a financial anyway, you've got my take. yes, i know, facebook down huge. i should just be focusing about that. i should be focusing on the election. but, you know, sometimes you take a little break, and we root for -- i'm focused on finding some winners. you've seen players like walgreens, boeing, archer daniels, key bank that rise to the championship stakes. on "mad money" tonight, with oil hitting the lowest level since september, i'm comparing the quarters of exxon and chevron, telling you how the two companies could have two vastly different results. then it's been a busy time in splitsville as of late. i've got one company that's spinning off on wall street that you've got to know more about. i'm eyeing the upcoming breakup. you probably have its products in your pantry right now, my exclusive with the ceo is just >> announcer: don't miss a secon

. >> pnc with their blackrock, even though they have that investor larry fink.hey will be able to do that. but the moneyman like waddell and reid. t. row price. i remember 1873, 1919. 1929, 1930. anthony: great opportunity to be an investor. >> capitalism gets a big tail wind and that's important in a way to allocate capital. the notion of the free market, the rule of law where anyone that can grow up in the united states and have a future for them and be blessed. anthony: we are all products of that, thank god. gary: thanks for joining us today. "wall street week" will be right back. >> announcer: right after the donald trump win the markets rallied. ♪ [vo] is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. it's how adventure begins. credit card. and with the miles you can earn, it's always taking you closer to your next unforgettable experience. become a cardmember and start enjoying benefits built to take you further... like

with that said, i'm looking to invest in blackrock capital. >> you're not going to go wrong with blackrockit's one of the best run financial companies in the world. i love those guys. how about wade in new jersey, wade? >> caller: jim, thanks so much. big fan of the show. wanted your thoughts on halliburton. >> oh, man, i don't care whether there's a deal for opec or not, that quarter was the turn quarter. i like the stock. how about alice in florida, alice. >> caller: yes, jim, this is alice. thank you for what you do for us. >> you're quite welcome. >> caller: all about freeport-mcmoran. >> if this stock goes down a dollar and a half, that's where i'd do it. i think it's got a soft basis right now. let it come down, but you're fine because i think copper has bottomed and i love what they did with the balance sheet. let's go to luis in new jersey, luis. >> caller: hey, jim, thank you for having me. >> of course. >> caller: quick question for you. patterson companies. >> there's something with the dental business. it's suddenly gotten very competitive. we're going to say right now. >> don'

at blackrock e we have been focused on dividend growth stocks.e seek to provide a competitive yield that's current but grow that dividend over time. and that makes all of the difference in the world in today's market. >> one of the sectors you like is financials. did anything change after the election? i mean, how much of this move in financials that we have seen recently is based on the fact that one, we have seen the yield curve steepen quite a bit since the elections and two this notion that regulation is going to be a pullback. >> so i think we were on a reflationnary path before the elections. unemployment was improving. that was translating through the phillips curve into better wage growth. we were also seeing inflation targets, cpi, reaching the fed -- the fed targeted level. so we were seeing reflation to begin with. the trump presidency, i think, just accelerates that. so we're going to see improving net interest margins as interest rates rise out of banks. also, the deregulatory impulse that trump has. that could also be good for banks

jeffrey rosenberg, blackrock's chief fixed income strategist. pushing policy. the u.s.sident elect says he will ditch the trend pacific partnership agreement on the first day in office. richard haass, president of the council on foreign relations joins us next. from new york, this is bloomberg. ♪ ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. alix: this is "bloomberg daybreak," i'm alix steel. here's what you need to know this hour. party like it's 1999. all four major equity benchmarks rallied all-time highs for the first time in 17 years as commodities surged. death, taxes, at a rate hike. the market is certain of the federal reserve moving next month as implied probability hits 100%. donald trump targets trade. the u.

blackrock anticipating it will grow. it could be a catalyst for a cut. australian governments have been serial under delivers. what does he mean when he says the government under delivers? the former treasurer forecast we would be in surplus now, but australia is still $37 billion in the hole. some of it is beyond the government's control. we commodity prices have had an impact on the terms of trade. the political scene is deeply divided. the call to happen election did not work out. mocon turnbull is down to a one-seat majority. it's making the process of economic reform in possible. inn though $6 billion savings did get past, it's a drop in the bucket when you consider what the government has to overcome to protect that aaa rating. rishaad: thank you for that. haidi: let's take a look at how markets around the region are faring. we are counting down to that shiny -- china open. fixing.ve the yuan we see some upside in the asian region. rishaad: stocks under pressure, but still not stopping that market. we are up at the moment. the open is next. ♪ .aidi

and otheren blackrock out with other groups heading just -- cutting the forecast for gdp 1-2% for 2017 speculation that the proposals that have been put forward will have a big effect on the trade environment for mexico. select-- vonnie: the other thing, i am looking at the bloomberg, both mexico stock index, the yield curve. this is last month. you can see the movie are when last snapshot was taken in blue. the mexican central bank will tomorrow. how much will it raise end is it of theause president-elect? >> it really is outlook for the trump administration. economist -- before the truck victory they were thinking rates.uld raise inhave seen a big adjustment expectations since then. inflation has been contained. around 3% now. there is a concern that eventually with the peso at record levels, that you could significant pass through and at some point this will start to affect the formation of prices. >> has the market been functioning well was sufficient liquidity? does the central bank need to announce other measures? >> that is something people have been looking for. bank has signal

rupert harrison of blackrock still with us.political risk, french elections which may see marking the pen coming to a second tour, are the markets pricing and more political upheaval in europe? rupert: following brexit and donald trump, there is a higher political risk premium. with the italian referendum specifically, everyone is positioning for a no vote so a yes vote would be a short-term positive surprise. there is a question about whether political risk in europe is being perhaps overestimated. it is very easy to draw a parallel from brexit and donald trump to say therefore we can make no forecast about political events, pulling is junk. -- holding is junk. -- polling is junk. these were just close elections. most people in europe look at marine le pen and france, that does not feel similar to donald trump and brexit, the kinds of margin in these polls are 20 points, 25% differences in the head-to-head which is very different. if you are looking for a place to take risks, perhaps there is a premium you will pay on european

jeff rosenberg from blackrock says this is what will be preoccupying and having a lot of the attentionnce we get past the december rate hike. >> the longer term issues however are a bigger story, trump, the election, changes to the federal reserve, many board seats and governors that will be coming up for renomination orton do seats to be filled, and that will change the tenor of the fed. of thee are 19 members committee. right now, only 17 because of two vacancies. governors of the board in washington are different. let's look why fed governors matter so much. appointed by the president and get to vote at every policy meeting. both the fed chair and the fed vice chair are appointed governors, and then they take that next step into that why trumpyou can see has the ability to put his mark on the fed quickly. back in-frank overhaul the financial crisis created a chairman of bank supervision supervising the big banks. president obama was never able to fill that seat because he was afraid of not getting his pick due to a republican-led congress. governor dan tarullo has been the de facto

now we are seeing institutions like blackrock holing up in december. rather than go ahead with the rate hike in december. goldman thinks it is going to happen. but that is 60% from 75%. they may not raise rates in december. they may soon begin picking up again -- see the yen picking up. reallythese headwinds are not getting any kind of boost from a possible trump presidency at this point. haidi: complications for the bank of japan. manus: thank you. possibility of a rate hike has to 8%.om 50% we will talk about ramifications for this region from iraq to iran, syria, geopolitical implications. we have a consultant from donna mercy be. this is bloomberg. ♪ >> from my point of view, it reinforces why i want to own america, meritocracy and the free market system. it allows capitalism to flourish again and hard-working people with small entrepreneurs are now going to be praised if they are successful and not pitted against. >> as the economy strengthens, they will rise. it is the normal course of things. as long it is it is reasonable, stock prices are valu

one blackrock strategist said she anticipates trump administration officials to try and talk the dollar down going into next year. mark: i can't match you because we have no records here the stock 600 for the record it is up but we are 18% below april 2015 record. that is the difference in performance between europe and the united states stock market. we're up today. we have alternated daily between gains and losses for 10 consecutive days. that's the longest stretch since may of 2013. like in the u.s. this is where we are similar. best performing industry groups, oil and gas and basic resorts. the performance of the euro and the italian sovereign bond this is an italian sovereign bond index. since trump won the election investor see the euro, not italian bonds, as the best way to express concern ahead of the italian referendum. traders speculating the ecb could backstopped bonds in the event of a no vote. further undermining the single currencies. the blue line is the italy sovereign bond index. the euro is down by 3.6% since trump was elected. bits have a look at another of politics w

intense competition for assets and clients including vanguard and blackrock. removed from a position after a dispute with a resident in beijing. the company apologized after the spout aroused critical commentaries and chinese estate media. anna: thank you. compass group, the largest contract caterer, expects 2017 to be positive. joining us is the ceo richard cousins. a warm welcome to daybreak. upbeat 2017en an expectations. positive. last time, you are not too worried about the brexit. wish we're staying and buy from a business point of view, it encompasses remarkably well-placed. only 10% of our business is in the u.k.. we are a very low risk business and we think we will do well in most circumstances. we do not believe there is a sign it will threaten us. >> we have the autumn statement coming up, what you expect? humble chefs. we will do well whatever the circumstance. anna: fiscal spending of any kind, do these kinds have an impact on your business? >> in the short-term, no. in the long-term, who can measure? our business is to get into the business of ou

blackrock saying australia could lose top-notch credit rating by s&p as early as next month.f the midyear budget review shows further financial deterioration. the country has been struggling with a fiscal deficit since 2008 as lower commodity prices hit revenues. australia is rated aaa by three major agencies. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . anna: thank you very much. breaking news from softbank in japan. the telecommunications internet business, fiber-optic and the like, reporting numbers that beat estimates for the second quarter. billion yen. that was nicely above the estimate, also beating at the net line. not giving any full-year guidance. talking about losses related to transactions, not there. they say they are booking an acquisition related costs on arm. this is the i.t. business in japan that has come forward to -based business, arm technologies. juliette saly is standing by. a lot of focus on this fbi investigation and the impact of that

larry fink was there from blackrock. paul volcker was there.'t all bets off with donald trump. >> no, no. liz: he is speaking to different people who had been against him. >> think about it, liberal democrat is what gary cohn is, he will go there and do some of the stuff donald wants to do. liz: a lot has changed in eight years. >> gary cohn is supply side economics? liz: this is congressman mccaul. he had a conversation with donald trump. >> everybody is going in there talking. he had the guy, what's his name from, banker, alison in there yesterday, big time supply-sider. libertarian. gary cohn is much more keynesian. liz: why is he there. >> why wouldn't he be there? why didn't brad grey or john gray from blackstone. brad grey. liz: here comes hollywood. >> if you're a bank you have to meet with the president. here's what we have. gary cohn is going in there. they will kiss the ring of the president-elect. yesterday was interesting meeting went under radar screen, paul atkins, former sec commissioner, libertarian supply-siders from donald tru

you were on conference calls with blackrock.rms of investment attitude from this election or is it just analysis? richard: i will talk about what we're seeing in terms of client flows -- we are not seeing any crisis. no panic. no people moving money dramatically. i think that is an important point. secondly, the investment attitudes, the reflationary attitude, it is becoming reaffirmed. you lookcause when forward, there has been big risks that could derail the economy -- brexit and trump -- neither seem to have derailed the economy. when you look forward, you say, what is coming? and it is increasing conviction that this trend will continue. it means that with an equity market, areas like financials do better, bonds struggle. mike mckee, we have david folkerts-landau coming up with us later. are you seeing anyone make radical adjustments? i don't see that. mike: the radical adjustments came the day after the election when people decided the economic good times would probably continue and that we would see money from the fiscal s

in london a former blackrock invest -- executive pleaded guilty to insider trading.ck says his trades were carried out for his own personal gain, and he will be sentenced december 21. that is your bloomberg business flash. among the topk performers in the nasdaq 100 for this year but has the bar been set to high? we have a preview in off the charts. this is bloomberg. ♪ alix: this is "bloomberg daybreak." facebook out that the earnings. here are three charts you cannot miss. the first is examining the behemoth that is facebook. it wants to be a video company and have video mobile ads, and this is the layout now the orange bars are daily active users -- the yellow our daily active users, orange is mobile monthly active users, and the blue is total monthly active users. total monthly active users are at 1.7 billion individuals, huge numbers for facebook. the issue becomes, how do you monetize it? in theory facebook does not have a problem. it is all about mobile, video, and video ad sales. this is the marketers estimate for facebook ad sales over the next few years. 20

matt: this is another reason blackrock estimates there $50 trillion in cash.lity measures can equity investors use to protect downside? are there any? >> that is a good question. it's a specific measure. it's a very specific measure of equity,rm protection on on the s&p 500. definitely look at other things. markets,dm, imaging but that currency volatility. currency volatility is a bit lower than the days before brexit. >> other measures of volatility. are there other indices out there where you can get more value hedging against downsizing? that tend to correlate where there aren't as much protection? do clients try to find alternative cheap hedges? >> yes. people are always looking for cheap hedges. the only thing is don't get too cute. i would rather pay a little bit for protection on something that correlates to my book than try to find some esoteric hedge. twc do look a little bit cheap. scarlet: you surveyed the landscape. to what extent did the bombshell from the fbi fuel demand for protection? do you see that dissipate on monday? when the fbi gave her t

blackrock says markets resulting from the victory may call that's cost the federal reserve to hold off on a hike next month. san francisco fed president john williams said adjusting rates are policy will be a gradual process that takes a few years. >> inflation has been incredibly low. the running about 1.7% over last year. we want it to be 2%. from what is happening in the inflation'm expecting will move back to 2% in the next year or two. we are close to achieving our goal. this currently stands at 82%, up from 76% at the end of last week. our guest is still with us. anna: up from yesterday even more. how does this change how the fed operates? convinced they might move given donald trump's victory? want toink the fed will continue to convey that it is an independent organization. it will probably try to step away from the election results and focus on the economy. williew is that they proceed and they will hike rates in some way. you think it won't make , coming around very quickly is the idea that just because we had this change in emphasis at the white house, the fed is staying the

blackrock says $50 trillion in cash on the sidelines, that's a lot of money.think we're going to continue to see market declines heading into the election? >> i believe we will. and we'll probably see fluctuations because people are uncertain. right now a lot of people are standing by the sidelines, some are getting a little freaky and taking money out and not investing. now, it'll eventually work itself out because the stock market's cyclical, as we all know. but because of nine straight days going down, it lets the world know that we're in an electoral disfunction right now, and that's what's creating all this. eventually, it'll straighten out. liz: jean, i'm hoping to get your thoughts on fbi director james comey sending a letter or to members of congress saying the fbi will stick with the original conclusion from july, it's not going to recommend indictment of hillary clinton. does that change your feelings about hillary clinton at all? >> no, not at all. one of the things that i've done in my life on more than one occasion is trained the fbi on management

we are back with pablo, with blackrock's emerging-market debt team.e uncertainty generated by the u.s. election. does it throw him off course? pablo: i don't think at all. brazil is one of the most idiosyncratic stories in emergent markets. it is domestically driven turn around. you had a significant amount of issues with politics earlier this year and last year. this appears tothis appears to t resolved in the sense that congress is functioning again with its goal to tackle some problems it is happening -- it is having. is what investors were expecting. we have a bill in the senate to cap increase of spending. that starts to shape the story better. the central bank cut rates. to cut's so far this year -- 2 cups this yea -- two cuts this year. cutne is forcing them to rates. they are using this opportunity to rein in inflation. joe: what you need to see in brazil to suggest they are still on the path? the path of reform, fiscal or getting rid of corruption, or trying to reduce it, what do you need to see to know they are not stalled out? pablo: first

blackrock said the market turmoil resulting will cause the federal reserve to hold off on a hike nextonth. san francisco fed president john williams said existing rates are policy will be a gradual process . it takes a few years. currentlyon has been low. inflation today measured the way that we look at it is running about 1.7% over last year. bewanted to be -- want it to 2%. what is happening with the strong economy, i am expecting inflation will move back to that 2% in the next year or two. we are very close to achieving our goal. guy: yesterday we saw wild swings in interest-rate probabilities surrounding what the fed will do next. you can see that clearly on your work function. go to the swap contract and you will see this bouncing around. theumped initially on prospects of what the trump when will mean. we came back up again. we are back where we started. we are even a little bit higher. you can see this on the right-hand of my screen. we really bounce back. go to your work function and look at the last way for hours. the stock market is not immune to what we signed terms of vola

millionaires which we can tell you more about that network, but he was the former managing director of blackrock, and you may have seen his op-ed in "the new york times" today on transparency in corporate taxation. so we're thrilled that -- i'm thrilled that morris was able to do the forward, and he could autograph the book as well later. it might be worth more than mine. so anyway -- [laughter] so as cody said, this is -- the book is called "born on third base" which actually comes from a quote from the coach of the dallas cowboys, barry switzer, who said some people are born on third base and thought they hit a triple. as cody said, i'm the great grandson of oscar mayer. my father used to say bringing home the bacon has a different mean anything our family. [laughter] and i grew up in an affluent suburb of detroit, actually thought that i was middle class. i have a couple of my classmates here, and they would remember that there were, you know, the daughter of lee iacocca and, you know, the toddman family and people who showed up to college, to high school in chauffer-driven cars whereas my da

a number of the big fund managers including pimco and blackrock and goldman, a lot of the street predicted tree is as well-positioned as they could before this. it is a trading market. they came in and saw some value. i think yields are going to go up to 240. guy: we will leave it there. matt miller and i are going to leave you there but surveillance is up next. francine lacqua will be up next. this is bloomberg. ♪ francine: top picks. team -- trumption plus transition team top fundraiser. a transition to a capitalism that works for everyone? theresa may want -- might opt out. lee akayev --

blackrock thinks investors are holding 50 to $70 trillion in cash.ink that cash is going to be put, randy, back to work, because that would be a huge boon equity prices. randy: i think we already saw a little bit of that happening throughout almost the entirety of this calendar year. we saw people pulling money out of the bond markets in anticipation of a rate hike and that started to accelerate in the second half of the year. typically that money goes into the equity market. we did not see that. you some money coming out of the last two to three months. part of what drove the rally following the election was that even though the election was a surprise, the uncertainty of how the outcome might materialize was over and immediately, some of thatoney started to come back in the market. the more urgency there becomes for fear of missing out and some of that money will continue to come back in. right now, the market are leveled off. the initial reaction, surprise reaction is pretty much over. now we have to look back to fundamentals to drive the equity m

scarlet: that was the head of blackrock's fixed income markets.ilers as well as online retailers prepare for the battle on black friday. we speak with the international council of shopping centers ceo. this is bloomberg. ♪ ♪ amanda: this is bloomberg markets. scarlet: it is time for the bloomberg business flash pit printer he goes governor is challenging the control board to pull its territory ouof the economic crisis. he will not submit an amended fiscal plan. austerity measures will only worsen the crisis. -- for final round of negotiations. according to people familiar, the two bidders gained an edge because they have technical expertise in the system. and ups is developing apps that help customers with simple requests and may someday enable them to track packages using voice command. ups offered a chat box interactive feature on the facebook messenger app, skype, and alexa system earlier this month. artificiales intelligence to interact with its customers. amanda: the holiday shopping season kicks into high gear and the competition between onl

david: blackrock's rick rieder is staying with us.ouse advisor.conomics rick rieder call this a solid jobs report. what is your reaction? ck had it right when he talked about wage growth, the central thing in this report. 2.8% over the last year. the fastest rate since the financial crisis. we continue to create jobs. the unemployment rate is down. broader methods of underutilization are down even war. we are pleased. david: we have to look forward to next tuesday and what comes after. you're looking to the end of the obama administration. what job situation will you hand to the next president, whoever he or she may be? jason: a better job situation then president obama walked in with. we were losing 800,000 jobs a month. we are in a solid position now. wage growth is making consumers more optimistic. they are spending money. that is helping to propel the american economy forward and giving them momentum. we feel good about that we took something that was broken and are handing over some again that are shaped. alix: there's still weak

why blackrock says australia could use it -- could lose its aaa rating as early as next month.e will go live to sydney for why that is. this is bloomberg. ♪ yvonne: this is a daybreak asia. westpac ares of trading in ostrow you, up about 1.3% after the bank announced a full-year profit in line with estimates. allen in over to paul sydney. how do the numbers stack up? paul: very well. three much in line. the market was expecting 7.83, so what is $10 million between friends? headline is the return on equity, that is down 185 basis points. the ceo is saying low interest rates, higher regular three costs and increase capital requirements mean a 15% return on equity target is no longer realistic. that was set by his predecessor, gail kelly. 13% to 14% in the medium-term, there's a lot more in line with what is realistic, but the witht is responding well shares up 1.25% right now. the government is going to update the state of australia budget and lack rock says it could be the aaa credit rating. why is that? : this is the outlook the government puts out around december and is expect

in london, a former blackrock fund manager has pleaded guilty to two counts of insider trading.s were carried out for his own personal gain p he will be sentenced december 21. tom: every time the lumbar is with us from citigroup, there are many single best -- every time willem buiter is with us some citigroup, there are many single best charts. marvin good friend of carnegie mellon -- this is off of marvin goodfriend and his controversial jackson hole paper. the 10-year yield is positive, the white line. down below, under great duress, is where professor goodfriend suggests negative rates should be. this is a subscription by academics of the courage it will take to do negative rates right. you have been out front on this debate with rogue off -- with ken rogoff and others. he we have the courage to begin to approach marvin goodfriend's level? not in the u.s. or any of the advanced larger economies, but some of the smaller economies that use their own currencies -- they could go cashless and therefore remove the -- remove it. there is no technical obstacle to going cash. it is th

let's get the opening bell. ishares by blackrock.the nasdaq, ituran, provider of stolen vehicle recovery and tracking services. dollar's worth mentioning, jim. this thing is not coming in. >> it's amazing how people don't care. see, they don't care. they don't want to buy some of the packaged good stocks. some of the drug companies. but when you see numbers like i just saw on analog devices, what a quarter. this is before they even finish the merger with linear technologies, adi. take a look at that, that's a traditional analog semi conductor company putting up a fantastic number. these are incredible numbers. >> did you see the giant bull coming at us there? >> no. you like that, the graphic? >> 19,000. >> that's virtual reality. that's a machine learning, figured out that there's a bull. i urge people to go over some of these quarters, and don't take your cue from palo alto, take your cue from some of these other companies that are reporting, yes, like cracker barrel. the last time i went cracker barrel, i had a piece of apple pie

rick rieder at blackrock. good to have you here, rick. anything that could move the markets today? you in consensus like everybody else, nothing today and signal something about december. >> yes. i think that's generally right. however, there are a couple of interesting things to watch. one, do they explicitly state anything about december? that will be interesting. interesting to see whether they talk about the conditions have further strengthened, that will be interesting. one of the ones, there were three dissents in the last meeting. i think that what is the discussion and is there a compromise, a meeting going to december, going into december, and what happens with those dissents. interesting to keep an eye on those. and other markets. interesting in terms of rates of rally the last couple of days. >> is it bullish or bearish if the fed says a rate hike in december and they use explicit language? what does a market -- what do bonds do if they put that language in there? >> very surprised, i think first thing markets will be surprised because the fed tends to react, you have tw

we have jeffrey rosenberg with us from blackrock, talking about the short-term, medium-term, what it big day for commodities am a with bob michaels of jpmorgan -- for michaelses, with bob of jpmorgan. that is part of what we are going to talk about. tom: it is a new world. we just had another trump tweet. this is really cool. great meetings will take place today with trump, concerning the formation of people for the next eight years. for the next eight years. francine: tom, if you are going after that we had one of our guests, which i thought was one of the smartest things. terms, first you focus on growth and you are a little more tame in your thinking because you want to be reelected. you cannot do that much damage even in terms of trade. so maybe this is something -- tom: final thoughts of kim schoenholtz right now, with nyu. 18 things in my head -- productivity and the lack thereof. i'm sorry, but that is mr. trump's economic challenge, isn't that? kim: it is going to be a big challenge. some of the things he has proposed are not going to be hopeful. anything that reduces trade a

the head ofsk emerging markets for blackrock where opportunities might lie now.ons. we will be hearing from jeremy -- donald trump's speech. they are all on the agenda. it is proposal season according to xl group. it will be talking to us from the new york stock exchange about the $100 billion wedding business. david: i did not know there was a proposal season. alix: holidays. jon: thank you very much. coming up, in about an hour, mario draghi fleeces european parliament frustrated with lackluster economics while keeping and i on elections in france and germany. we look at key things to watch. equity market sitting near all-time high, this is bloomberg. ♪ jon: from new york city, this is bloomberg. i'm jonathan ferro. the s&p 500 and the nasdaq closed right here right now that would be in all-timeigh on a closing basis. the s&p 500 up one half of 1%. the dax up by 0.4%. driven by big gains in the a lotity market area it to discuss. a big weekend in european politics. former prime it -- former prime minister francois fillon, knocking out nicolas sarkozy in the pri

let's bring in brian jacobsen, wells fargo fund chief and jeffrey rosenberg, blackrock's chief investment for fixed income. brian, i'll start with you. the hearing is a previously scheduled one and the topic is the economic outlook for our country based on today's data, how would you say it looks? >> well, i think that the outlook is actually pretty rosy, at least if you're looking at some of the underlying trends as far as with housing starts, initial unemployment claims. i think that we do have some room to run though as far as with improvement. and that's what chair yellen is going to highlight as a classic economist. she's going to say on one hand this, on the other hand that. but i think she wants to say we're going to hike in december without actually saying december. so she's gone from saying we're going to hike soon to relatively soon. if you ask her next week, it's probably going to be imminently. >> and as we heard from her testimony already that has been released this morning the case for a rate hike continues to strengthen. jeff, do you expect the fed chair to comment on the e

coming up on "bloomberg daybreak: americas," blackrock plus chief global investment strategist.york. with francine lacqua and london. it is black friday. u.s. equity markets today close at 1:00 p.m. those who are trading have pushed up equity futures bonds a little bit lower on the day. we are watching in japan, where they have had an eighth straight month of cpi declines, but no change over here. look at the percentage change for the 10-year note yield in japan. --ncine: the dollar pairing it is now fully priced in. the irp function cannot go above 100. the hong kong shenzhen stock on december 5.ng it is huge when we look at each trump inauguration january 20. michael: it is black friday in the united states. i guess the europeans do it as well. there is macy's. nobody rushing in and out, but a few people on the sidewalk. ♪ francine: this is "bloomberg surveillance." i'm francine lacqua in london. michael mckee is in new york. taylor: italy's prime minister, told a newspaper that a technocratic government would not serve the country well. the prime minister has said the reforms