and what was your job at merrill lynch?irst job was to run marketing, and then it was to run the sales organization for the brokerage business. you were doing that, and then somebody calls you from morgan stanley and says: "you're doing great at merrill lynch, why don't you do an even better job and come over here?" is that how it happened? well, they had a business that they needed fixing, and i had some expertise in that business. actually it was a very struggling business at the time. it was the old wealth management business. and john mack called me when he got recruited back to morgan stanley in 2005, i think, and asked me to be part of the team, which i thought was a very exciting challenge. so i did that. so when you came over to run the wealth management business, did you ever think you'd be the ceo of something like morgan stanley? i did not. i told john actually when he was interviewing me for the job, i said, you know, "we can fix this business. i'm pretty confident about that." i knew a lot of people in the mark

he's co-head of global economics for bank of america/merrill lynch. you think the jobs market is in very good shape. >> as alan blinder said, this is a pretty good set of numbers. obviously the hurricane caused a very weak number and a big rebound, but averaging across two months, the job market looks great. and the unemployment rate just keeps falling, month after month. we're now down to level normally associated with a fully employed economy. there's no sign of momentum fading either. this is good news. >> you do point outhere really wasn't any wage growth. how worrisome is that? >> i think it's a matter of time. the economy has enough momentum now that we're going to see month on month further drops in the unemployment rate. economists have to be humble about their ability to forecast wage growth. this is something that pinning it down oa month to month basis is very difficult. as you keep pushing the unemployment rate down, the laws of gravity will come in and we'll start to see the wage pick up. >>ne of the of course in the piece there talked ab

and the merrill lynch employees were incarcerated.of them in solitary confinement before thee fifth circuit released them. >> sean: for a year. >> yes. for nothing. this is man who has been accused of threatening witnesses and hiding exculpatory evidence. it is unconscionable. it is inapplicable unethical. >> sean: how does he have the ability to practice law? >> because there is a syndicate going on within the department of justice. let's call it a cartel, the equivalent of the mob. andrew weissmann, robert mueller, james comey, who has now lost his job, and rod rosenstein, who is the deputy attorney general. and the fact that all four of them are involved in the trump/russia investigation, it should be a cause forga concern for every american. they have little credibility because their integrity has been compromised. >> sean: nobody, sidney, seems to know the power of a prosecutor before a grand jury. we know you can indict a ham sandwich. why did mueller pick this team? obviously he picked partisan democrats, we have highlighted th

and beyond with merrill lynch. this is bloomberg. ♪ ♪ i am haidi lun in sydney.oomberg markets: asia." haidi: i am rishaad salamat in hong kong. let's go to singapore. ,ank of america merrill lynch jerome powell probably the worst kept secret in living memory, and tax reform, 400 page document heavy on things, like on others come is that were the focus is at the moment? >> absolutely. the commonality between the fed and this tax bill will be buying on the rumor and potentially selling on the fact. there is a lot riding on this tax bill and a lot of pessimism built into this tax bill, but the dollar should get supported by buying on the rumor that something could eventually be done, so that will have to be the commonality between the two. rishaad: you are looking at the front end of the yield curve to steepen, which would necessitate some flattening. what would that tell us? >> basically when we are looking at the twos and fives, we think we flattened too much, it is difficult to disentangle everything. there is concern that taylor could lead the fed, so now that

bank of america merrill lynch had a study today that 23% of equity investors are concerned about howrate leverage that is. that is a record amount in this study. the analysts said that that is usually the level you would see during a recession. and by all accounts we are not in a recession. people are concerned. julie: a fascinating study. to go back to commodities -- commodity investors as well, the situation in china, fears of a glut. that is affecting energy to some degree but much more affecting the metals, rubber is also down today. talk to me about the china situation. >> it is a question of degree. the forecast for the year ahead, the consensus forecast is for something like 6.4% in gdp, maybe 6'1" percent the year after. most countries would be delighted but relative to the growth in china, it has an impact. do they reversed the capacity cut made this year in the people's congress, do they find this pivoting from an industrial type economy into a consumer led economy? do they need to prop up the industrial sector, which is what we have seen before. if they do not prop it up,

wall street, merrill lynch didn't say they paid their workers too little. they paid their workers too much. that's why the labor movement matters. pope francis speaking about how unions -- pope francis spoke about how unions perform in a central role for the common good. said the labor movement gives voice to those who have no voice. it unmasks the powerful who trample on the rights of the most vulnerable workers, who defend the cause of the foreigner, the least, the discarded. i just had the pleasure for the last few minutes in my office to speak with bishop murray, the youngstown, ohio. bishop murray and i were talking about the pope, about steel workers in youngstown, about the struggles of workers in wages, in layoffs and all the things that have happened to fae whims of globalization have buffetted the workers in that community. bishop murray, as does pope francis, understand what too many in this town don't, that workers feel invisible. entire communities feel invisible. they feel like they're getting used and abused and some other words that i can't

nasdaq today, we have frontier communications, after some analysts commentary from make america merrill lynch that said the company has substantial towers of debt and the equity story is the company is a new -- in new jeopardy. they are talking about their recently approved breast cancer therapy and began shipments to wholesalers at the end of july and reported third-quarter revenue from initial sales of about $6 million erie analysts are largely positive but hints that perhaps other analysts have higher estimates, shares down 13.5% and the finish line falling on analysts commentary as well, in this case calendar downgrading the stock to an and say in a note that cash burn will begin soon as margins move lower in the turn of inventory flows. we are watching gold prices as well today, there was a curious drop, a very dramatic drop in gold prices just a little while ago. we are still trying to get to the bottom of exactly what went on. we did see some movements in yield on the dollar as well, but not as dramatic as what happened in gold. we did see quite a substantial spike in volume, at the sa

. ♪ ♪ bank of america merrill lynch complying with u.k. will the nominee for fed chair handle banking regulations/ perhaps a win for wall street. we hear from

interestingly, agewave did a batch of research with merrill lynch in the past six months looking at people entering retirement. among the ways they found people stretching their dollars was just saying, hey, i own this very expensive house that i don't need to live in anymore, i'm going to sell it, i'm going to go to peoria or someplace else, buy something comfortable, affordable, and then take that actual equity and live off it. >> we've got to go. the best advice is, do the best you can. >> absolutely. a little bit, just start with a little. >> and don't get overwhelmed because that's what we're here for. thanks, jean. >> great to see you, and thanks for that important advice. >>> we're going to continue. jean was a terrific guest. and thank you to everybody who sent in the questions. coming up, bill? >> why the new retirement . >> reporter: do you think you could be saving more money? if so, how would you save more money? >> uh, i don't think so. too much things that you have to pay. the amount of money that you can save, it's not that much. >> they don't supply a 401(k) like they used

if you look at the merrill lynch surveys, it is a bigger consensus underweight.about another piece around the sector, the ipo story. away from the specifics, is this a positive sign that the company the soviet resources company can come to london and price. this is something we saw a decade or so ago. got ipo's in general, i asked this the other day -- at the small end of the space, there has been poor ipo performance in terms of share prices. one of the companies has done well, but it is early days with regards to confidence around ipo's. if you look across north america, we have seen more support for companies. a couple of them have done very well. is interesting is companies come into market with that areectations acceptable to new investors, when we are not seeing a great ,ust levels like we saw in 2007 we saw massive valuations coming through. we are in a very early part of the -- recovery. we've got a long way to go. anna: time heals. manus: if you are relatively boorish -- bullish on the court commodity content -- complex, where are you on gold? you probab

guess what, bank of america merrill lynch did a survey this summer. they asked over 300 executives at big-time corporations what they would use the money for. are you ready for what they said? exactly what wall street analysts like. pay down debt, buy back stock and spend on mergers. a, b, c, none of which help workers and none of which get people paid more. >> and we have studies that show this. that doesn't mean we're against tax cuts. i think everybody should pay less tax. >> and i think the tax code for corporations is too complicated. >> so here's where it comes down, where the rubber hits the road, sherrod brown and orrin hatch were ending up in a debate about this. >> a debate? >> let's listen. >> before we go home, let's acknowledge this tax cut is not really for the middle class, it's for the rich. the whole thing about higher wanlz, it's a good selling point, but companies don't just give away higher wages just because they have more money. corporations are sitting on a lot of money now, a lot of profits now. i don't see wages going up. >> i

what is amazing is that we 2.5%.e to 2020 to is that the merrill lynch terminal rate?a strong to idea on where potential growth is going to be at this stage. our view is potential growth in the u.s. is south of 2%. the impact ofd inflation. three-year, four-year horizon, we hope for potential growth in the u.s. resuming some acceleration. it has been weak over the last two years. we could see potential of acceleration. tom: a huge theme next year. david riley and gilles moec, thank you so much. disagrees with everything we talked about and he joins us and richard haass of the council of foreign relations. this is bloomberg. ♪ ♪ tom: yields higher. high yield bond fund is lower. the careful as the bond market also leads higher inflation and central-bank rate hikes to come. in this hour, gary shilling disagrees with what i just said. japan, china, vietnam, the president returns in this hour. richard haass on the council of foreign relations. in the united kingdom, just like a year ago, it will not go away. this is bloomberg surveillance. live from our world headquarters

the merrill lynch is, morgan stanley's and ubs all just trade-off with each other.ce, they lose a couple, gain a couple. this has everything to do with the revolving door of advisers leaving the big firms like organ family to go -- morgan stanley to go into the independent model, the fiduciary model. vonnie: what is better for the individual investor and even the institutional investor if there is more competition? does that mean more competition on fees? david: it certainly means more competition on fees but also advisers that have a more open architecture platform with which to serve them. to the extent that advisers have greater choices available in how they serve the investing public, that is a win-win. to the extent that the firms want to threaten their own advisors with lawsuits if they were to leave, i don't think that goes a long way to building a culture of freedom and sort of encouraging that advisor-client relationship. the public benefits from greater choice. merrill andkes of ubs, will they follow suit? david: i would have to think they would. obviously

with us is torsten slok of deutsche bank and james barty of bank of america merrill lynch.our survey, one of the biggest overweight globally, europe has been trading heavy for a little while. why did japan perform so strongly from september into just recently? a market where people have had positions fundamentally into next year, -- if you look at the consensus earning numbers of next year, it is just over 8% and given were global growth is, you can do comfortably double digits growth, next year. it is a market you are going to have to be patient with. alix: i keep hearing 125 -- 125 targets for 2018, whether it is morgan stanley or unicredit. can you have a higher euro and double-digit returns? james: the higher the euro goes, the more pressure it puts. issue. it is a bit of an if you are a u.s. investor, my own them and unhedged, own them in euros. at least to get the currency benefit. -- you get the currency benefit. jonathan: are we going to get that expansion? james: my point is you don't need to expand multiples if you get double-digit earnings growth. jonathan: a lot

shares of barclays are on the rise, updated over bank of america merrill lynch to buy underperformingit says 2017 should mark the trough for the wii's numbers. numbers.y's the council of economic advisers theed the cost relating to opioid epidemic in the united sayingto $504 billion, that was in 2015. that is higher than previous estimates. bloomberg intelligence has pointed out that opioid drug makers and distributors could see a flood of suits and probes that could make it like a was.co-related a quick check on the u.s. dollar, which has been trending higher, particularly against the euro and concerns against angela merkel's: us and -- coalition in germany. sherry: julie hyman, thank you. coming up, the head of the house democratic caucus, joseph crowley will sit down with us to detect -- discuss the tax overhaul. this is bloomberg. ♪ ♪ sherry: welcome back. this is "bloomberg markets: balance of power." david: i'm david westin. let's check bloomberg first word news with david crumpton. --k: president trump will during a cabinet meeting, the president said the move should have happe

if you want more in the story an interesting note out from bank of america, merrill lynch on our websiteatest pullback may be just the dress rehearsal for the other big ones to come, guys >> it's interesting to watch, though we hear it's not a barometer it is a barometer. we're right in the middle every day. we're seeing the tax bill move out of committee, and then we're seeing a senate version. the market kind of does this and that it's going to be interesting to watch as this plays out. it's near term, dom, and we're at all-time highs. it's going to be interesting >> absolutely. i would point out this has been a staggering run for stocks, right? we're still trading well above our average price over the last 200 days >> okay. thanks, dom. >>> tomorrow is veterans day joining us now david petraeus, retired four star army general, who is currently chairman of the kkr global institute he heads their vets at work program, which has hired over 50,000 veterans since its launch in 2011. general, it's great to have you. thanks for being here. >> good to be with you >> we have, unfortunately, be

bank of america merrill lynch fund managers survey, the fund managers suggested equities are looking so the valuations in aggregate are still buying. cash levels are coming down. is that because there is nothing left to buy? cash still is not a great place to hang out. or is it something else? do they believe there is a final hurrah in here? michael: he would love the sentiments. peak before the something bad happens, and actually, the university of michigan consumer sentiments had a very similar thing. it was just an all-time high. we quite often get the peaks of sentiment that look like the market is overbought. the one thing we would say in terms of what is driving it is there is always something else to buy him a something else to buy. to buy,hing else something else to buy. being caught in this virtuous circle, where we know the economic environment is the nine. earnings have been pretty supportive. price action has been supportive, and investors are continuing to get new inflows. in the investment management industry. you have no choice but to invest, no choice at all. you are

his criminalization of a business transaction between enron and merrill lynch, that sent people to jailthat was overturned by the fifth u.s. circuit court of appeals.ri critics have accused him ofti using intimidating tactics, intimidating witnesses, creating crimes that don't exist, and in one case in particular, actually withholding evidence that would have helped a defendant, really? just like mueller and so many other obama officials, he is also tied to the corrupt uranium one deal in the ensuingg cover-up. we will have a lot of news tomorrow, pay attention. he ran the doj's fraud section during the russian bribery scheme and gregg jarrett j actually picked this up, kudos to him. his name, his name at his signature are actually on the bottom of the plea agreement signed by the russian businessman involved in that case. another name and signature on a document is not the deputy attorney general rod rosenstein, another conflict. he's the one who appointed robert mueller as special o counsel. rosenstein seems also complicit in this uranium one scandal h because back then he helped over

isn't that among the top trades right now if you look at bank of america, merrill lynch and others thate shown -- >> teachers contracts? >> any positioning that have shown these trades get really crowded? >> it is a bit crowded we see other opportunities in the market that we think perhaps have more returnpotential. we're overweight energy, we like energy stocks. we think the micro is catching up with the macro and given our view of rising rates next year, we think that financials could do well over the coming 12 months so sticking with tech, again, i remember when we were talking about teflon tech, it's tough to make it go down, we think the fundamentals remain supportive, but there are other opportunities for investors to tap in the current market. >> jason, it's singles day today, but soon enough, arguably too soon, christmas lights will be going up and the wreaths and what not are there particular names, maybe in tech to start that you're looking at to have perhaps big upside potential if q4 turns out better for them than it has in the past? >> well, i think there are, obviously, go

bank of america, merrill lynch, says, the stock pullback we saw yesterday, kind of some scary moments yesterday when the tax plans were coming out. wasn't the big one t was just a rehearsal, for the big one. one fund manager has names that will provide downside protection for investors when the big one eventually hits. bring in jensen quality growth fund, eric shoensfi-n. five point on richter stay that is the not the big. when is the big one coming? can you get us a sense when the big one will come? >> it is difficult to determine when the big one from the market perspective will happen. that is the hard part. you probably won't know it is here until actually already underway. that is one of the reasons why we like the way that we think about investing from that standpoint, downside protection you mentioned is, by having companies with consistency and quality you can actually do a little protection for yourself that will allow you to be positioned well, you don't think you have to time it, be ready for a portion of what you do for your investments. liz: but you still like equities. y

employees as they need, according to john shannon, a foreign-exchange strategist at bank of america merrill lynch. he is quoted as saying companies are sitting on a large amount of cash and are not financially constrained. he conducted a survey of more than 300 companies asking their plans for a tax overhaul and they said they will all basically focus on their shareholders and engaging in buybacks. as the fed looks at this, no linkage between these tax cuts and investment, ceos will say they will do share buybacks. as the fed looks at that in your buybacks --r share our share buybacks going to increase wages? >> we will get back to this in a second and the european equity markets, our wonderful function. european stocks are rising for a second day, the highest level since november with credit suisse forecasting roughly 9% total return for global equities next year. concentrated in the first half of the year with the second half of appearing more challenging. sterling is up, one reason the ftse is down. look at the yield on the 10 year, up 10 basis points. this is the move i wanted to tell you abo

lisa: i am looking at the index for retailers, merrill lynch bank of america has it as hurt, the acronymnt to a point -- i went to compare it. julia: can we compare it to amazon? talk about the confidence that amazon has not been as you see rising e-commerce, amazon is taking a share of it so you have this multiplier effect and you want to look at where the money is going and i think it is one place. lisa: the images of people waiting in line and pushing each other does not make people want to go. jonathan: that is the last place i want to be today. [laughter] julia: a contrarian. today,n: as you commute tune into tom keene on radio on bloomberg surveillance. they can be heard across the united states on sirius xm. this is bloomberg. ♪ ♪ taylor: this is bloomberg daybreak in the hewlett-packard enterprise greenroom. coming up, macy's ceo, live from their new york city store. ♪ taylor: i am taylor riggs with your business flash. buy an is in talks to oil and gas unit controlled by a russian millionaire. the combination of winter show and leather one end or g's business could be valued at

a very subtle decision by merrill lynch. .t feels european sometimes you think there's a big gap between what the u.s. wants in europe. it can see it converging and things like that. tom: a developing story. what we know is at&t would like to merge with time warner. there's the phrase, we are going to court. , head of bloomberg intelligence. i was struck by the leadership of at&t saying we're going to court. how do you go to court against justice department? this >> might be posturing on the part of the justice department's i suspect there will be heavy negotiations over the next 30 days because i think the clock has started. at&t feels like they have a very good legal position to stand on. they're pursuing a vertical integration. the doj has not blocked any material vertical integration. when's recent precedent comcast bought nbc universal. at&t feels confident in their position. tom: within the position is the drama of the russian dynamics. ,r. sessions and the president the white house, is this being directed by a third l

kamal is with us from bank of america merrill lynch.the mercantilism of the new american president and the idea of a zero-sum society. an auto manufacturer to get up and say all the right pr moments and all the right things about what to do with trade, but the answer is president trump is of is zero-sum trade president. how does that relate to the history of our trade from world war ii? michael: i think the key thing that's going on at the moment is itrump's visit to china daresay there will be significant trade deals on the back of it. here we have the american president for the first time as the supplicant coming along to beijing to try to sort out the nuclear problem of north korea. ironically the one solution to it, which would seem to many people would be the sensible want come is a replication of the 2015 deal with iran. it's precisely the one that he has ruled out because he's trying to subvert it. will happen the next few days in beijing is that trump will try to cover all the profit ceremony -- pop and ceremony by the chinese.

and to that corporate point, over the summer, bank of america, merrill lynch, said to ceos what would you do with more cash on your balance sheet. you know what they said? dividends, buybacks, m & a. that's not pay workers more. >>> two months since hurricane maria hit puerto rico and a huge portion of the island still without power and drinking water. >>> first, some amazing video from florida, a state that's hat an influx of people from puerto rico. a small plane crashing into a busy street in pinellas county. the pilot reported engine trouble and couldn't make it to the nearest airport. the pilot and passenger walk addway without a single injury. this is stunning. us. it's what this country is made of. but right now, our bond is fraying. how do we get back to "us"? the y fills the gaps. and bridges our divides. donate to your local y today. because where there's a y, there's an us. >>> former president bill clinton's in puerto rico this morning to get a firsthand look at recovery efforts before meeting with the island's governor and mayor of san juan later today. today marks two mo

bank of america, merrill lynch reiterating this is a buy, right here, a buy rating for ge, saying thereme makeover launched by ceo john flannery will actually create value in the long term. all right, a buy at $17.94. to the best performing stock at least in the s&p 500, advanced auto parts soaring at this hour, jumping nearly 18%. the i auto parts retailer posting better than expected earnings after four quarters of having missed estimates. right now that's a near $100 share stock at 96.96. >>> let i us turn -- let us turn to capitol hill. the rules committee set for an emergency meeting to begin at 6:30 p.m. eastern tonight for a last chance to make any amendments or alterations to this tax bill. now, in all goes according to -- if all goes according to plan, the bill will be up for debate tomorrow ahead of thursday's formal debate and then vote. they say it's thursday. meanwhile, it's adam shapiro of fox business who's been reporting that senate republicans are working to see whether they have the votes to repeal the affordable care act's individual mandate as part of the tax refor

you look at the merrill lynch fund manager survey today, people well exposed to stocks thinking they going to kind of ride the last bit of upside maybe it's an adjustment of positioning and sentiment. then i think the sense that maybe there is an imminent health you can bank on, not quite there. >> now we're getting word from dow jones that the white house is considering al arian for federal reserve vice chair, a post focusing on monetary policy experience interesting dynamic. him and powell >> the report says that a broad range of candidates are under consideration, the previous conventional wisdom was perhaps you'd have a pairing of jay powell with john taylor, and that would be the vice chair position, but seems they are casting a wider net than perhaps previously reported. >> somewhat interesting if one of the kind of architects and theorists behind the new normal was somebody who came in under an administration who says that's nothing like normal we can get to 3.5% forever would be a little surface irony on that. >> we'll watch those developments mike, thanks good discussion wit

bank of america merrill lynch says investors are riding a wave of irrational exuberance, according to latest survey, fund managers view stock is overvalued but are bullish on growth. and record 60% of investors say they are assuming above normal levels of risk while reducing downtime production and holding less cash. amazon's finds regular chemicals used by its suppliers. as they increase retail sales, it's facing greater scrutiny for corporate stewardship. amazon is pushing for greater products. and that is your business flash update. abigail: still ahead, the world's top central bankers got a refrain for a particular transparency into medication. inwill hear from them their own words. this is bloomberg. ♪ abigail: the world headquarters, this is "bloomberg markets and imf for abigail doolittle. it is falling in the most in six months now as new data shows china's economic expansion slowed and -- slowed in october. expectations todd graham a commodity index. the biggy complex is piece of this. natural gas falling in a big way. while prices probably have not and agency's view for 2018

bank merrill lynch says the space industry will to pull in the next few decades to be worth three trillion dollars as for now the still a long way to go incorporation is the name of the game nasa wants to send humans back to the moon and europe's abbots group is part of the endeavor is currently busy finishing the orion service module vital to the success of the mission. these brown at least of strips may not look very impressive but they're indispensable the wafer thin thermal membrane to protect delicate components like sensors from extreme temperatures in space you know hours of painstaking work technicians apply over twenty thousand individual strips to the four metre high module. the strictly sequenced work is done under clean room conditions initial testing is due within a few days. for me. personally it's the most exciting phase of the program because we're off the drawing board and on to the hardware breathing life into the vehicle as soon as we finish the integration will transition to the respective test phase. the module is a component of the arayan spaceship seen here in a comp

what they think, and the sorry what they are actually do, so when you look at bank of america, merrill lynch, global portfolio manager positioning this week, way overweight equities globally way overweight not like for world historybut relative to recent history, and then you hear a poll where they shay, no, i'm not that bullish that's fine, but we all know what you're doing. can't lyrics and i care much more about what pupil are actually doing than what they are predicting they might do or tell their friends they are doing. nobody wants to look goofy at this stapling in the cycle, but they are long. >> let's bring in mike santoli joining us today from the new york stock exchange. he's been looking inside the market for maybe some signs of cracks some of the things that people are looking at, mike, beginning in high yield. >> yeah, absolutely, scott high yield, i would say it's high yield spreads the way junk is acting is one of your desert island indicators to know what the environment is looking like. gotten a lot of attention that the high yield market has really softened up. what that me

i do think you had interesting stuff, merrill lynch tech overweight by active fund managers is at a record high people get it. they want to own almost by default. i do think there could be a perception battle for facebook whether the business model could stay as good as it is if they have to have change in practice. i don't think that's a today story. the perception could be today. the reality of margins is not about today. >> the collision between the lawmakers rhetoric and the price action today is amazing. >> it is. >> a couple of things. you mentioned excesses last hour talked about the difference between bulls and bears and sentiment. high yield. >> yeah. >> what excesses >> sentiment on a short-term basis becomes a headwind i don't think it's about entire public is in love with stocks. it is about people engaged in the market are giving this market the benefit of the doubt. this year has worn away a lot of the conviction of the bears. i do think credit, it's one of those things, until it turns it's a net positive. are we seeing crazy stuff happening, companies getting finance? i gues

bank of america and merrill lynch surveyed 300 c.e.o.'s about what they would do with their tax give aways. what are they going to do with those tax giveaways? top three responses. pay down debt, buy back stock, fund new mergers. in other words, something for the banks, something for wealthy investors and nothing, nothing for workers. the third big lie is that the plan won't increase the national debt. that's just plain false. the nonpartisan congressional budget office says this bill will tack on $1.4 trillion to the debt in the next ten years. and we all know what comes next. the same republican senators who will vote for this $1 trillion budget buster tomorrow will turn around and vote next week and say, our national debt is just too high, and we need to cut medicare and medicaid and social security and education funding and affordable housing and you name it. in fact, the republican budget they passed last month tees up more than $1 trillion in cuts to those very programs. this bill raises taxes on millions of middle-class families an

over the summer bank of america merrill lynch asked companies if tax policy went through, what would you do. and they said dividends. share buybacks. m&a. that's not going to pay their employees more money. >> i was a businessman for 30 years. i had companies. if i got a tax break like this, i would grow. every quarter i came up saying look at this tax bill i have. i can't afford to hire any more people. so there's a difference. i'm smalltown business guy. you're talking about major corporations. >> okay. but if you were on accountant now, when you look at pass throughs, accountants are not going to get that benefit. but if you own a used car dealership, if you're in real estate, you would. so you wouldn't be getting the benefit they're offering in this bill. >> what you're looking at is what we've tried to do in the house side was make sure that individuals can't incorporate. that's why there's a bit of a difference. on the house side and i know you were talking about the senate side. the house side is permanent individual tax rate cuts. the house side also has permanent corporate t

. >> on that note, stef, bank of america, merrill lynch, global fund manager survey right here, it's frothy f.a.n.g., that's one of their headlines otherwise they say, quote, icarus is flying ever closer to the sun. should we be paying more closer attention to these things than we should? >> we should definitely pay asglena attention. >> just to the commentary before, i'm actually encouraged from a contrarian point of view. the market is always climbing a wall of worry. when everybody is really you've figure that's when i get worried especially if the fundamentals are deteriorating. the fundamentals are not perfect by any means we know what the negatives are, but i do still think that the underlying growth in the economy and the global xhips are okay and that earnings are good the problem is earnings are now over pretty much, and now we're kind of back to the macro and wondering about tax and the big pig tour and that sort of thing. >> with repriced perfectly >> i don't know, because i think the earnings are actually improving, and i don't think that -- >> you don't think that's in t

. $600 million in the seven-day period, according to bank of america meant -- merrill lynch.ur guest this still with us. michael, i want to go through the journey of the last week or so. this started with the company .tory than a sector story, on the chart, mainly telecoms in farmers over. a high-yield index, lagging the overall sector move. this is moving quickly through the asset class. story of the building up of leverage, the amount of debt that has been taking on -- taken on. these concerns haven't yet fed through to investors changing their application. asset classes continue to do well up until recently. is the talk about what's going to happen in tax interestout index -- deductibility. although growth is good for high-yield, actually, being able -- not being able to a duck -- adjust your index expenditure is going to be a problem. >> a few things happened this week. --re sprint deal collapsed and thus sprint deal collapsed, so that was country specific -- company specific. situation the wider for the credit market, what i see throughout 2017 was a selloff in the sprin

including specialized investment banks like goldman morgan stanley, merrill lynch, the old jp morgan. our institutions were doing extremely well. in my view that was a story that was told. certainly, i think if you went what -- you would have institutions more specialized, more focused, and i think they would be better at what they do. we've had more problems once you have an institution trying to do everything. when you try to do everything, you tend not to do anything that will. banking problems are universally caused by bad loans. not by securities actions. sure you areake not subsidizing this banking system, let them do everything that make loans. of robbing their powers was in terms of risk. so that you would disperse if i -- you would diversify their activities to decrease overall risk of their enterprise. that idea to me is valid. i don't think we want to go back to the world in which if the bank part goes down, the whole thing necessarily goes down. it is good we have diversification in the banking system. >> it was because if you look at the data, you see that most of the fin

economist at bank of america a merrill lynch and he gives a thumbs-up to jerome powell. fed team hereour in new york and he thinks that jerome powell will be a good choice. that he has exhibited sound judgment and will continue to do that as fed chair. the bank of tokyo mitsubishi had some doubts that a lot of people expressed as we go through the process of senate confirmation. he said, look. the fed chairs the 1980's has become the nation's chief economist. and the question is now, when it with congresst, as opposition, can they defend policy? how will jerome powell reform in a crisis? the senate confirmation will come soon. -- he has already been confirmed twice. a lot of big questions. betty: big questions. in gina smiley. kathleen just covered the monetary policy side of this. onceerome powell, he was known as being tough on banks. will he be just as tough or, maybe even the opposite, when he becomes chairman? >> people are watching this closely on the street and what they consistently say is that he to reverseming here all of these policies that we have put in plac

. >> merrill lynch fund manager survey says cash levels are lowest since 2013. >> they were still high. as a money management firm, we have clients that bring money toys and want us to get it invested people are waiting for pull backs for years, right try to get them invested, it is not the right thing to do. we have a lot of clients, retail investors are sitting on lots of cash in addition to this, if we get some tax stimulus through, specifically in the form of fiscal stimulus or if we can repatriot ate any kind of cash, even a half trillion out of 3 trillion there, we will see buy backs and special dividends come to the market. >> what do you think, what should i do? >> i echo similar comments i find the tweet from bill gross convenient right at the end of earnings season let's not forget how great apple's quarter was just two, three weeks ago, how we were talking about apple x, iphone x being off the chart. i think investors need to have self-discipline, apply that pru dentally with regards to the economy, slow growth for as far as the eyes can see, whether congress does tax cuts o

back stefan selig from bridge park advisers, a former long-time deal maker at bank of america merrill lynch. what's your reaction to this >> it's certainly a big audacious deal with far-ranging implications it will attract a lot of media interest and public interest but i think as david suggested, it's -- it seems like a long way to getting done. it is highly complicated but companies are getting bigger and we are continuing to see a shifting landscape in media and entertainment companies for a lot of the reasons you have been talking about. >> highly complicated in that -- >> these are -- >> -- talks are not proceeding >> they are multi-form companies in a number of different jurisdictions that is going to get real regulatory scrutiny and given the size of the deals, there will be certain financial constraints. i think it's a reflection of the fact there's a seismic change undergirding what is happening in these industries and as two leerd leaders they are trying to get in front of it >> they need leverage because comcast, our parent company, has the pipes. this might be a reaction to if w

our major institutions, including the specialized investment banks like goldman, morgan stanley, merrill lynch, what was then the old jpmorgan. from what i have read, our institutions were doing extremely well. that was the story that was told. you would have institutions that were more specialized or focused. they would be better at what they do. i think when you try to do everything you tend not to do anything that well. >> banking crises are almost universally caused by bad loans. not by securities activities. ok? so if you want to make sure that you're not subsidizing this banking system, let them do everything but making loans. the idea of robbing their powers, the major argument was in terms of risk. ok? so that you were diversifying their activities, you know, to decrease the over all risk of their enterprise. that idea to me is totally valid. ok? to go on't think we want back to the world in which the bank part goes down, the whole thing necessarily goes down. i think it's good we have diversification in the banking system. >> can i add to that also? hat is the reason why the -- there

bank of america, merrill lynch had highlighted the fed loan survey down just by weaker lending standards what is going to drive it higher? >> despite all that, you have another quarter of double-did you get earnings growth and project q4 given the fact that expenses are well controlled, credit quality is -- they're buying back a lot of the stock, so 3%, 4%, actually gets the the double-digit, and then evident leverage toal these other things we talked about. and valuations haven't really moved. this group traded in the low 70% area prior to the election and is still there despite the exposures that could come. >> jason, thank you. >>> mean tile drug during this timers are facing pressure about the opioid crisis from a group you might not expect the teams sisters union. we're going to explain why and speak with a top executive about it >>> plus more on the wild trading day for snap chat. many investors no doubt learning a lot of money all of that and much more on "power lunch." throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to cre

employees as they need according to john shin, who is a foreign exchange strategist at bank of america merrill lynch. in fact, i think he is quoted as saying companies are sitting on a large amount of cash. they're not financially constrained. shin, who conducted a survey of more than 300 companies asking their plans for a tax overhaul. and said they're all basically focused on their shareholders and engaging in buybacks. so as the fed looks at this, and they're saying there is not a linkage between the tax cuts in investment. in fact ceos are saying they're going to do share buybacks. as the fed is looking at that and your policies, are share buybacks generally, are they going to increase wages? >> well, i don't think share buybacks would increase wages. the usual linkage would be investment in capital and equipment would if they occur order to the extent that they occur would help raise the productivity of the labor force. and in boosting their productivity, would likely end up raising wages. but the linkage occurs through capital spending and not through share buybacks. >> yeah, share buybacks do

as many employees as they need according to the foreign exchange strategist at bank of america, merrill lynch. in fact come he's quoted as saying companies are sitting on a large amount of cash. they are not financially constrained. conducting a survey of more than 300 companies asking their plans for a tax overhaul and they were all basically focused on their shareholders and engaging and buybacks. as the fed looks at you saying there's not a linkage between tax cuts and investment, the fed is looking at that and policies, our wages? >> share buybacks would increase wages from the usual linkage would be investment in capital and equipment if they occurred or to the extent they occur would help raise the productivity of the labor force and boosting their productivity would likely end up raising wages, but the linkage occurs through capital spending and not through share buybacks. >> share buybacks don't do anything. share buybacks would increase the stock price. that's the main reason for that. if you have stock options, you will do really well. you're significant shareholder, you will do rea

the last -- went to walmart and bought a t-shirt hold the buy u.s. 1, route 66, whatever it is, merrill lynchnot kidding this was an upgrade that you do when you're like i hope i can -- i hope carl doesn't mention this on the 9:00 because it's really embarrassing the stores are a lot cleaner than i thought i'm waiting for him to say the fresh fruit, i tried the cantaloupe and they were perfect -- never mind. >> i'm here reading the at&t's response to the government's complaint which is worth hitting this morning and you have a copy as well. >> i found something i agree with, defendants admit that at&t is the world's largest telecommunications company. >> there's hope. >> this was filed late yesterday or later in the afternoon yesterday. it's a worth while read. you can see at&t shares are up and time warner also up a bit. we don't know when this is going to trial, the u.s. government versus at&t. but a couple of interesting things came from this rebuttal one of which is that at&t apparently has offered its third party distributors the same arbitration protections the government embraced in th

is the latest in a deluge of high level dismissals we're joined by sallie krawcheck and former merrill lyncheo it's good to have you back. >> good to be here. >> you've written about this and talked a lot about this phenomenon did something change this particular week because of the names involved >> matt lauer? charlie rose men we had our first cup of coffee with, they felt like your brother or your uncle. man, it's getting personal now you sort of begin to feel like geez, you know, a few months ago, a year ago i thought this was in my past when i started on wall street. the dwarf throwing parties, the strippers on the trading floors. i thought it was over. and now it's these men a frigging lock under his desk to close the door? this is creepy and weird and bad. >> our business has taken it hard recently as we pointed out. what about your business i mean, you raised this idea of years ago and strips are and the like wall street was always thought of to a certain extent as being tough place, a tough place for a woman to work. >> yes. >> did you see it. >> are you surprised there haven't been

if investors aren't demanding it and look at the merrill lynch survey, what should we do more of andrs -- they are not asking for more buybacks investment in the business and maybe debt paid out. >> you have to wonder if this is wait and see also to see if there's tax policy that will reward them for investing and allow them to expense that capital expenditures >> or if they think they are going to have a tide of repatriated money coming back you can use to pay down or something. it's interesting that the market has done just fine -- the market has plowed through, it's only qe, only zero% interest rates and buybacks and fang. it hasn't been only all of those things, a bull market feeds on whatever story is in play at any moment. >> right. >> dow is up 40, really quick. even though some retailers are working, others are not, cignet is down and footlocker and airlines on the back of the higher oil number. let's get to dominic chu on the floor. >> what else is moving right now is all of the kids around here it's family day. we'll get to that in a second. they are kind of gathering aroun