they include the largest alternative asset managers. blackstone has ambitions to attract $100 billion in capital from insurance companies managing private credit on their behalf. does that mean blackstone is going to be competing with what you do? steven: i think they do in intended to compete and there are plenty of people who compete in the business when you look at the large asset managers, particularly those with a focus asset management business. i would say this, though -- when we started metlife investment management, our focus was on investment-grade private assets. for now we compete in different realms, although we will see if they move into the investment grade. when you look at what we do with private assets -- private place in corporate debt, private infrastructure debt -- it is nearly all investment grade. erik: that said, they want to take some of the credit products originating lower down in the capital structure and package it in a way that it can appeal to insurance companies. might thatossibly --

or robotics have in asset management >> well, the asset management panel is about the future of assetith analytics and the whole changing world of technology, it is going to impact different parts of the asset management business in different ways in our case, deep insights are possible when we are looking at data, when we're about to acquire companies or frankly, when we're managing companies. we want to drive ebitda growth, and to be able to look at things differently than we normally would, that could play a very serious role for us going forward. case in point, retail. retail versus online there's many new things that have come up in the world of a.i. that can contribute -- data analysis effectively is what it is that can seriously contribute to whether or not things are shifting on you and how they're shifting on you. we're leaning very heavy into that direction >> it's not necessarily replacing people with computers as much as it is investing in the area so people can analyze data that better informs them. >> better decisions, better data analysis different kinds of data that pr

george rusnak from wells fargo, lisa hornby from schroeder and buchanan from western asset managementat doesn't for me -- that does it for me. we'll see you next week. ♪ mark: i'm mark crumpton with first word news. saysean union policy chief the block is determined to make sure the iran nuclear agreement is respected, despite president trump's decision to pull the u.s. out. speaking in florence today, he called for calm and dialogue on all sides. today,eems that screaming and shouting, insulting and bullying systematically destroying and dismantling everything that's already in place is the motive are times. mark: the out of the united states cannot undo the agreement by pulling out saying quote, this deal is not a bilateral treaty, is a un security council resolution and it belongs to the entire world. she has been reassured by iran's intentions by the declarations of president hassan rouhani and added the u.s. cannot undo the agreement by pulling out saying this deal is not a bilateral treaty, it is a un security council resolution belonging to the world. she announced she will sha

guy: you talk about your asset management business. assets -- one of the assets you hold is standard chartered. in fact, you are one of the biggest shareholders. there was talk this morning that we could see mergers and european banking, asian banking and barclays. as he walked the halls of the event you are at the moment, is there isn't that european union -- that the european financial services industry has to make chances -- changes if it is going to compete on the global stage. i suppose, looking at it from the asset management sector before we discuss the banking sector, certainly, there has been a movement of the middle ground. you either want to be small or betweence the merger aberdeen and standard life. bankingthat applies to is interesting. i've just been on a panel with bmp, andman's of bbva, yes, i think there is a feeling that the sector needs to be larger. certainly against the very large u.s. banks that dominated banking globally now. it looks like they're going to continue to do so. guy: as a hold on standard chartered,

andrew wilson, the ceo of fixed income at goldman sachs asset management international.we have been talking about trade, trade between europe and the u.s. starts to falter, china and the u.s. -- it is the emerging markets that suffer as a result. a u.s. 10, 3.1 on year, the u.s. feels like a different place. the dollar was going up again. e.m. feels like it will be a tough place to operate. all the lines seem to be converging on making this trade tougher. youew: historically, when saw those moves, you said i don't want to be in e.m. when you look across the board, it is better than it was from a valuation point of view. you had the taper tantrum of 2013, the valuations were stretched. we won't say there aren't potential issues in argentina and turkey, there are issues taking place in those countries, but we are more constructive around e.m. despite the comments you made in the backdrop because e.m. growth is still doing well and we think investors are underinvested. you have seen big flows into e.m., we haven't seen those in three or four years. if anything, money has co

that's very difficult in an asset management company one of the things you want to do in asset management is integrate the products, potentially get a little cost savings, and then distribute the collection of products more aggressively so i don't think we would have been able to have done that in the structure that we did. and so hna and the skybridge team, we worked hard over the weekend to craft a joint venture which is outside of the cfius process, something that we can put in china and then use their great brand, even though they had some difficulty in the media in the last year, we could use the great brand to grow in china, increase skybridge's growth and so forth. but the real story here, though, is if you look at troy and ray, jason wright, rob philips, maureen noble and the entire skybridge team, not like the academy awards where i can mention all of them, they have done an exemplary job with the business i'm not allowed to talk about the performance, but i encourage people to look at how well the business has performed in the last year despite the media storm. >> we only have a

after my very early days as a summer intern, the part of the business that i went into was the asset managementequity management part. and as an equity analyst, you are given responsibility for a group of stocks and you have to make recommendations as to whether the fund manager should buy, sell, or hold the stocks. and you are judged by how well you do on your recommendations. so if you tell all the fund managers to buy stocks that go down, then you don't do so well. and no one can really excuse that. ♪ david: what do you think investors mostly want? low fees, good service, or high returns? abigail: everything. they want all three of those. and you better be doing more of every single one of those every year or you will find yourself behind. ♪ ♪ david: let's talk about fidelity now. how big is it? how much money do you manage at fidelity? abigail: so we have almost $6 trillion under administration. so that includes money that we manage and money that we record keep that other people manage. we manage over $2 trillion, about $2.5 trillion in equities, fixed income, money markets, and other asse

flatt, chief bruce executive officer of brookfield asset management.e are live from beverly hills. mark: great job. do stay tuned to bloomberg for more coverage later. we will hear from the colony north star executive chairman. u.s. g we see corporation spiking up more than is based inmpany chicago and manufactures building materials. the board is authorizing talks on a potential sale. about two weeks ago the board said it would not yield to pressure. acquisitionected an offer. clearly it had a change of heart. this is bloomberg. ♪ ♪ live from new york, i'm vonnie quinn. mark: the european close, minutes away. vonnie: time for the bloomberg business flash. nissan's u.s. sales plunged 28% in april, three times the decline animist -- analysts estimated. fiat chrysler's u.s. sales rose 4.5%. the company was led by its jeep models. jeep sales soared 45%. pfizer reporting sluggish sales. revenue rose 1%. they still expect to make a decision on its consumer health unit during the year. the business has been valued at $20 billion. two potential buyers pulled

ago, asset management is one thing.we were talking about with regard to trade. the thing is, about manufacturing, it is regarded as being the be all of and all -- be all end all. since 2013, let's see how much product value was added in china. inhas gone from 20% or 25% 2008, 2009, and now we are looking at 7%. the world has changed. china has changed. tom: a lot of what we consume our services. they're not made if you will. used to manufacturing take 1000 people to make a car, now there is less than 100. over talk] if you go back to the industrial revolution, it changed when the engine came in, the buildings came in, it changed -- >> the spinning jenny. tom: exactly. electricity for that matter. rishaad: is there a bit of advice that you would like to give somebody who wants to get into the chinese market? first, you have to the series and look at it as a long-term commitment. your establishing presence in china and the region. it is very important to decide you're going to be a part of the regional area, which we are,

he is ceo and president of mahoney asset management. good to see you. >> you're inclined to buy dips like today, right? >> absolutely. the real sto is about earnings, earnings, earnings. location, location, location in real estate. the market has to be about earnings. companies guided higher for the most part. companies also have a lot of earnings because of the tax windfall they have that they can buy back stocks and pay dividends. >> the environment's changing. rates are going up. i mentioned the y tenr now above 3.07%. does that worry you at all? >> a littlebit. look how we got there. it's not because of inflation, it's because of growth. two months ago people were saying we get to 3%, the market is going to roll over. 1% down isn't rolling over. if it stays up here and goes higher, we'll have to watch that. bonds are competition into stocks but the same token if yo, think about a couple of months ago we hit 3%. the algorithms are going to make the markee. casc >> geopolitical, trade, none of this we were talking about last year. it

joining us is trevor greetham from royal london asset management. eye in the markets at the moment? you have seen a lot of stock market volatility so far this year and what we are beginning to see are signs that global growth is coming off the boil. 2017 was a strong, synchronise your with europe catching up with america and now europe is slowing down a bit and the uk had the worst gdp quarter in five or six years and the markets are very sensitive to that. the us is doing well. yes, retail sales were very strong and they had tax cuts lately. as a result, people expect the federal reserve to press on with interest rate rises this year, where is elsewhere they are getting cold feet. we missed it in this country. the chinese bank has a quantitive easing policy which means the dollar strengthening again. we are going into a period where the stock market are usually pretty volatile and we seek trading markets for equities and some dollar strength as well. there seems to be a decoupling between the speed of growth in the usa and the rest of the world. be

alternativee is asset managers, including oaktree, are fairly difficult to model.hree general forms of income, management fees, investment andme, performance fees, the latter two are difficult to model and are cyclical by nature. they are based on trends in the market, opportunities to come and go. one thing we know as we know is we're generating good economic returns over time. we have a view that over the long term, oaktree and the competitor companies will deliver stronger returns to investors. >> great. thank you for being with us here in new york during your travels. i will throw it back to you, vonnie. vonnie: wonderful inner -- interview there, jason. thank you. breaking news. caroline: regarding a french bank set to name four nude deputies for a ceo. let's bring in bank reports. no question of issues with him, but we have four new people being promoted to the role of ceo. interesting names are coming. >> absolutely. left when he was let go about a month ago because he was seen as longestsor one of the in europe since 2015. this is a reflection of the new ge

bank operates across all levels of the operation so retail banking investment banking asset man asset management at its subsidiary post the bank it's also it's already working on cutting its activities on u.s. equities but it's also started to reduce operations elsewhere like in central europe africa and the middle east so the supervisory board is apparently getting together tonight in order to consult on these plans and these targets are the results being presented tomorrow at that shareholders meeting where i will also be monitoring the developments as they unfold. on the stick with banks u.s. president donald trump shocked america with plans to roll back banking regulations and now congress has approved a bill to dismantle parts of the post financial crisis legislation but large lenders will have to continue as before. the u.s. congress vote to roll back dog frank rules is a big win for small and mid-sized banks who have more freedom and less bureaucracy big banks with more than two hundred fifty billion dollars in assets will still be subject to the post financial crisis regulation. until no

gartside, is nick asset manager for fixed income at jpmorgan asset management.e bank of turning quite bullish on guilt yield..k. 10 year from 1.4% to 1%, that is a big fall. are you changing your view of the market in the wake of the boe? nick: i think the reality is it is likely to be closer than 2% than 1% because the market has ever done it. anyone who listen to mark carney yesterday would have heard him say it was the weather that didn't. that gdp number in the u.k. was very depressed. we know the weather is terrible. it is likely to the revised upwards. the bank should have hike rates yesterday. mark: we are still pushing out the forecast for rate hikes. i think february is fully priced in before november was. the probabilities have moved into the distance. is august on? nick: august is definitely game on. it is unlikely the market will push that rate hike much further out. all we need is a little bit of data to surprise to the upside and that is the risk. mark carney said the same himself. the market should be pricing in august rate hike. vonnie: how much

bank operates across all levels of the operation so retail banking investment banking assets asset management at its subsidiary post a bank it's also it's already working on cutting its activities than us equities but it's also started to reduce operations elsewhere like in. central europe africa and the middle east so the supervisory board is apparently getting together tonight in order to consult on these plans and these targets with the results being presented tomorrow at that shareholders meeting where i will also be monitoring the developments as they unfold ok and we'll be going over to you live thank you very much. there on those cross the board cuts at. the soaring trade in illegal animal trophies is thanks to the internet forget any progress conservationists thought they were making the global demand is there and your purchase of an exotic parrot or some rhino horn is just a click away. around one hundred fifty years ago africa was home to millions of rhinos and allison's since then their populations have been devastated and now due to a surge in poaching they're facing extinction in

they could be other asset managers.ally think about all the markets outside the largest asset management market, china really does have to be at the top of your list. where is your main competition coming from? is it local players or international players? if you are trying to serve institutions in mainland china, you can do that offshore. that is a whole different set of competitors than we would generally think about. i think china is going to be the same. you want to serve people who are in the local market. you really have to have an approach of a local company. if you are going to win over time, you are not going to win at the expense of other global offshore firms. you have to compete against local companies who have local capabilities. behink it is more likely to competition with local people in the marketplace versus being a foreign asset manager trying to go it alone. francine: what kind of products to investors want in asia? etf's, orx funds, more active products? is, whatchallenge investors want and what they

jay: we have a multipoint strategy and asset management.umber one strategy is to invest franchises and we have seen progress over the last couple of years. the passive etf's get used interchangeably. etf's were initially a way for institutions and individuals to get cloture. exposure to japanese banks, exposure to this and that, exposure to technology, but they have transformed the investing world and are now being used as whening or components combined together to produce certain outcomes, often called solutions. the point of mentioning that, scarlet, is i think the etf industry as a long way to run because of the way that these component parts are being utilized, d engineered, and then recompiled to produce different outcomes. in the institutional world and in the retail world. we are investing in product innovation, distribution. we think that they will continue to be a winning hand. ultimately, doesn't it come down to cost? a lot of people are saying that it became a race to the bottom with cost and that is what retail investors look at

dollars on the assets under management and there are plans to expand that to four hundred billion by by twenty twenty through local and international investments but but a come back to admit it is this all too risky can the kingdom do it. i think that it in itself would be a bit ambitious in terms of timing if we are talking about two thousand and twenty five that might be realistic but who are almost midway through two thousand and eighteen and be the nature of this and many other plans of this government and others in the region is that it's important to have targets and ambitions but also accountability but i think they also with the exception of the introduction of the eighty underestimated how difficult it would be to launch fiscal tightening reduction of subsidies and introduction structure reforms from a standing start when in many cases they didn't even have the computer systems in place and that in itself can take a long time a lot of testing is required i wouldn't necessarily say that they are taking on too much risk but i would say that they are maybe biting off more than

although their assets under management have not really grown all that much, look at the eps growth topoint, the last four quarters have been exceptional and i do think this stock should trade mere towards 190 >> two buys, one sell. are you out there buying pete's pitch? you can vote at cnbc fast money. we'll reveal the results later on in the show >>> plus, we're heading back out to the code conference in california carl quintanilla is there. he has an interview with restaurant mogul david chang coming up. >> code is all about tech and media. you mix in media, aimdimeate fod you have a recipe when we're back in a couple of minutes. ♪ california dreaming >>> welcome back to "fast money. you're looking at a live shot of the code conference in rancho palos verdes in california where some of the biggest names in tech and media are gathering carl quintanilla is there sitting down with netflix star david chang. carl, take it away. >> that's a good way to put it restaurant star and netflix mogul. or some variation of the two david change, it's great to see you. thanks for being with us today

co-opition to be a versus being a foreign asset manager trying to go it alone.: that was vanguard international managing director james noris speaking to bloomberg's francine lacqua. watch us live and catch up on our interviews on tv . you can also dive into any of the bloomberg functions, plus a join in on the conversation during the show. this is for bloomberg subscribers only. be sure to check it out at tv . this is bloomberg. ♪ haidi: i am haidi lun in sydney. yvonne: i am yvonne man in hong kong. you are watching "daybreak australia." in the us is bad loans to the country's five biggest eight-run banks are $7 billion more than the lenders assessed. for the yearts ended march 20 17 and showed discrepancies triggered large losses as the banks increased provisions. haidi: volkswagen is opening three new factories in china with its local partner sow group as it seeks to step up ownership. there will be focused on suvs and electric vehicles, the fastest-growing segments of china's auto market. yvonne: the japanese owner of chinese soy sauce maker is said

joining us from mumbai is the messenger asset management ceo - - mohinder asset management ceo.rkets will be looking forward to the outcome of the election. we are most -- more focused on consumption. rural and urban consumption are doing well. haidi: how do you expect sentiment to be played out in this. especially when it comes to indian politics? nilesh: general elections are 12 months away. we have won election result today, and for state elections in december -- one election result today, and four state elections in december. rishaad: how have use of investors been changing the and the the bjp leader? how much support is he going to bring out there? -- garnering out there? has the sheen come off him? lesh: india is not a speed point. -- not a speedboat. it is an oil tanker. acquired 280 plainenes in five years. 580.otal is in the next five years, we anticipate acquiring about 260 plaines. we have our challenges. rishaad: we're going to come back to you know. -- to come back to you. we will talk more. plenty more ahead. this is bloomberg. ♪ rishaad: let's have a look at the l

some japanese asset managers coming out and saying a higher oil price might make it -- make of concern inflation pricing in europe. does that mean we will see yields go higher? what does it mean for the euro. it's something we could ask jeremy stretch. ,et's move on and quickly look we are seeing this up to tens of 1%. we have seen volatility in the session so it jumped the most in a month earlier because there were reports the u.k. would want to extend its time in the customs union with the eu beyond december 2020. those were denied. sterling gave up its game. gilt yields have been moving higher as well. we have a look -- that's a look at european markets. vonnie: we are seeing currency moves. the mexico invoice has said there are no new dates set for more talks. at the same time we heard from the canadians earlier on saying there are talks in washington today and they are very close. we shall see if anything emanates from this. mexico is not expecting to talk about things in the future at least from the envoy a few moments ago. so let's dig in today's market moves. dollar index up a

>> on the show we're joined by sheila patel, ceo of the international group at goldman sachs asset management thank you for joining us on the program. let's first kick off with the fed factor overnight investors breathing a sigh of relief should they be or are you concerned about the fact that the fed seems willing to tolerate an inflation overshoot? >> thanks for having me. in terms of the fed, investors feel more confident than they did that there's clarity from the fed. that we know they're thinking in terms of inflation, we feel it's still a relatively benign scenario mainly because we don't see the labor markets pushing wage inflation too, too quickly. from our perspective, no, i don't think the overnight news is cause for concern we prefer some other asset classes over rates, but overall people feel more comfortable with the fed than at the beginning of the year. >> at the same time you have once again a bit of terror tantrum going on, especially looking at the auto sector globally today the latest comments from president trump about this investigation into the auto sector, does this ra

coming up on "bloomberg markets" and asset management managing greenblatt- jeff from gotham asset managementand out your bloomberg business flash. j.p. morgan chase is doubling down on china. jpmorgan is also seeking to create a securities company in china and will take a majority stake in its joint venture. ibm is invading capitol hill to lobby against the european union capital -- the european union privacy laws. they say the new eu law should not become a global standard. the measure imposes tougher rules for how data collectors gather and use personal information. there is a big medical marijuana deal in canada. aurora cannabis has agreed to buy a rival company for $2.5 million. it has led the effort to consolidate canada's marijuana industry. that is your bloomberg business flash. david: retail earnings are in focus this week as we get a starting tomorrow when home depot reports before the market opens. wednesday macy's reports and to wrap up the week we will be hearing from walmart, jcpenney, and nordstrom. we also want to be taking a closer look at different aspects of the group in ou

greene,us now is megan chief economist at manulife asset management, and max kettner, cross asset strategistcommerzbank. thank you for joining us. talk to me about these italian rates. there was market angst yesterday. what did they see yesterday that they did not see him credit? megan: there is more confirmation that it is likely to be that professor to be prime minister. who do you call in rome if you done?o do something is it going to be the prime minister? or will the characters in the five-star party and the done? league be running things? if you take that chart back further in time, they increase has not been that huge. i think that represents a lot of complacency on the behalf of investors. i think it is probably misplaced, given the things in the government programs. there is the idea that you might anance all of this with backdoor way to borrow without adding to public debt. it could be used as a parallel currency one-day. this will not blow up in the next year, i don't think. for anybody with a medium-long-term look, i think italy is really worrisome. francine: how worried are you,

the unsourced report says the aim is to develop financial services such as asset management.s early as next month. soft jet has named for --uties to he was an 18 year veteran of the french bank and seen as a potential ceo. a quick check across markets right now. we are approaching midday. the markets have been shut for a few days now. good doctor still up. haidi: not a lot of momentum we are seeing even though u.s. stocks managed to end off the lows. also looking at this conclusion of day two of the u.s. and china trade talks in beijing. stocks are coming out moderately positive. singapore anti-want looking pretty mixed. languishing a little bit into this friday. plenty more to come including the latest on china. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, th

morgan asset management is still what us. on newsl the footside the pound is going up?ny stories with brexit. we treated earnings suffer when you have a higher sterling. -- repatriated earnings suffer when you have a higher sterling. footsie, buy the 250. karen: otherwise, you will see the biggest winners and losers. also, auto prices are justifying those high-dividents. .rexit, sterling, footsie too much happening. the u.k.data out of economy is in a difficult place, putting brexit to one side -- how big an opportunity is there? is the data going to come back, turn, so i can have a better feeling when it comes to some of these retailers? karen: the opportunities in the u.k. market are massive. you have full-time employment greater than 2% in the latest data. that is not a soft patch. --ot of weakness is related it is going to come back naturally. the housing market is looking a little bit soft, but it has sustained itself well. are ambitious for more affordable housing in the u.k. is a slow process may not be a bad thing, especially for the youngest. the outlook on an

this business moved away from more towardsading, asset management and the italian market. and the three local lenders they picked up in italy. they are talking about a more difficult environment and capital markets. a strong euro weighing on performance. lots to tell you about in terms of what is going on in the market. let's have a look. down 6/10 of a percent in the asia-pacific. trade tensions in washington will be foremost. mixed tensions in china and gaza how does that fit with the geopolitics of the trump administration? 10-year gilts at 3% -- yields at 3%. interesting moves in the lira. the lira hitting an all-time low, the dollar gaining. the turkish president telling bloomberg he will take more responsibility for monetary policy if he wins the next election. coming up, we will hear more from the turkish president in the exclusive interview -- as he sits down with guy johnson. to a cfo.e speak let's get the first word update. juliette: the turkish president had said the united states need to work together with his country rather than putting up trade barriers. anma

it is a clampdown on a high-yield asset management products.from 2010-2016, as we is seen, wealth management products sales by banks barely increased in 2017 paid the other part of that, of course, is efforts to shrink the hidden interdependencies between financial institutions. that is where i want to bring up the second chart. we can see, the drop -- the drop we've seen in 2018. dave: rolling over. >> in the banks borrowing from other financial firms is another sign of success. it is a little bit of a drop. dave: if you squint. >> off peak, as we are seeing there. haslinda: steve, you talked about some of the successes. some risks still remain, correct? >> that's right. and authorities realize that as well. as i mentioned in the open, basically write later several ready shown some sort of awareness that the pain they're causing. they have delayed the full implementation. from mid 2019 to the end of 2020. and the other aspect of this as well as in many things in the chinese economy, there are ways to get around the various crac kdowns. i'll ta

chief economist, panmure gordon and antonio del favero, senior portfolio strategist, rubrics asset managementy with us. according to people briefed on close.ter, a decision is the plans would follow the move to retreat from businesses it deems less competitive. germans bank reporter is with us. , or wes this report understand from sources they may cut 20% of staff, something deutsche bank has denied. >> yes, that is right. the interesting part, if you look at the business unit globally, they go to the bank unit by unit and decide how much to cut it. those cuts could add up to 20% of the u.s. workforce in the maximum scenario. that could be a drastic cutback for the u.s. operations. what is happening at deutsche bank, and how does it change their future in the u.s.? at the looking operations they have singled out a few units to cut. for example, prime brokerage. u.s. finance. they will close the houston office which was the coverage location. that will go away. all of those businesses will be affected. it will mean they are reducing the operations. it is difficult to anticipate how many side e

vonnie: joining us with more on geopolitical risk to markets is jpmorgan asset-management portfolio manager who received over $124 billion in assets under management. you content in with a lot of turmoil in the euro. greece.ain and and there's the threat of contagion. do you do nothing as a portfolio manager? anne: i was thinking of what to say this one. i was out of town for the weekend and unplugged until monday morning when i started reading again commend this will sound boring, but no, nothing. ask a lot of questions -- this sounds clever in hindsight, but a month ago, over a month ago, we decided that the 10-year at the present was interesting again -- not necessarily because we thought it was a great deal, as a point of ballast in your portfolio, it represented a great diversified equity risks. .e started buying durations today we walked into the office and watch all of this unfolding, and rather than trying to top-tick or bottom-tick, you want to think about building in production before the fire starts. production before the fire starts. trying to catch the falling knife now is bad

the asset management administration costs were just a couple hundred thousand dollars in that august budget. one those costs were moved do unu undown to -- down to that line item it increases. >> so it's just shifting between lines? >> correct. >> director reiskin: so the bottom line is that our projections from a year ago actually were pretty good and they are holding, is that what we should take away? >> yes. >> chair nuru: i can elaborate on that. feel free to correct me though. the three item social security are e fining systeming -- of refining system. we have almost $1 million. we associated under content management for the advertisement, not for the transit operators. we didn't have that in mind at the time. so you'll see that increase because we are working with the transit operators on developing the content. that's not something that we allocated for. the other one was the marketing commission. in terms of impleme improvement showing $3 m.5 million. we have a restabilized year so we didn't have as much commission. this one is commission is high because we are leasing the re

you want to ask yourself, do you want to be a goldman sachs asset manager?ay two of the erdogan impact from our interview yesterday. another record low on the turkish lira. yes, indeed. he was in london and speaking to guy johnson. let's talk about the u.s. bond market. it is back to 2011 for the bond market and the 10 year treasury yield reached its highest in almost seven years during yesterday's session. this morning, it holds above 3%. without any clear catalyst, it has the attention of investors who will look for -- guidance in the united states. we had the san francisco fed weigh in. weighing -- eitherdistribution has three or four rate increases as appropriate for this year as a whole, and a few more increases the next few years. i view this to be the right direction for monetary policy. fed, ofaring from the course. peter fitzgerald, global head of multi-assets at aviva investors. still with us on set in london. i have this nice chart -- that is all to do with whether we see the curve invert in the united states. this is inverted by the summer. if we

tilmann galler, global market strategist at jpmorgan asset management is still with us. you think u.s. valuations look stretched here as opposed to the european and japanese valuations? european and japanese stocks are probably a bit cheaper than the u.s. admitnerally, you have to that after the correction we have seen in the last months and after the strong earnings especially in the u.s. we saw, even in the u.s. equities, they do not particularly look expensive. they are not cheap anymore, but they are not expensive either. matt: is there a concern, wemann, that the balance see, earnings in the first quarter were up 25% for the same quarter a year ago. but a lot of that could come from the tax cuts in the eight one-time item. -- a one-time item. will that momentum be able to continue throughout the year? guest: we believe strongly so. because it is not only the tax cuts. we still have a very benign growth in the u.s., phenomenal growth should be -- a nominal growth should be strong around 5%. ineurope, we still believe the continuation of the recovery with a nominal gr

ceo of us in london, the hassey him asset management. reaction to the iran nuclear deal announcement in terms of crude oil, the dollar, financial conditions in the united states. a little wobble in some assets and in asian equities this morning. no great strides downward in terms of risk appetite this morning. does that surprise you? was it all in the price? what explains the way the markets are taking this with a level head? >> markets will see what happens in this game of chess. there is an immediate impact to the action trump has taken, which is geared around what happens with inflation and oil prices. oil prices are now over $70. the last time we had this level was november 2014. we would expect oil prices to contributing to the inflation print number in the u.s., which impacts inflation rate hikes in the u.s.. the debate over three hikes forces -- versus four. it will have implications, but everyone wants to see how this plays out. anna: where does that leave your equity strategy? on an: equities are upward trajectory at the moment.

this is tied to phoenix groups holdings, the insurance business they sold and the asset manager closed deal a number of weeks ago. the phraseology, actively progressing the firm's intentions. they received -- in cash from the dealer, as well as a 20% stake in phoenix. hime speak, we are harrying on the phone to see if he will join us. standard life, down 6.5%. there you go. you are in for a little boon from the executives at standard life aberdeen. let's talk about the populist swagger in italy. the populist leaders are mobilizing for an earlier election, even as the premier puts together a cabinet that -- he will present that to the head of state. news on italian government bonds. over the past two days, a significant move higher. on monday. 40 pips the euro declined as well, down .2%, the weakest against the dollar in seven months. the markets were shaken. kevin costello is our western european economy editor in rome. this is volume at a political level. is question is, the premier going to report back to the president today. what do you think his message is going to be? kevin: he wi

yesterday, the head of morgan stanley was in washington and he said that asset managing is one of thertant vehicles we have and i am very excited. he said he wanted to reach $1 trillion in management. >> i love that number, as you know. it is a nice round number. alix: i would like to get to that. [laughter] >> it is interesting how far morgan stanley have to go together. -- to get there. look at where they are now. blackrock is the clear leader. morgan stanley, this is literally a fraction. david: there is a lot of banks in between. >> the bank of new york mellon and morgan stanley, dot, dot, dot. they need to first get back to where they were. not too long ago, they were at $600 billion, now under $500 billion. david: he knows the busins and he was brought in to do that. you look at their earnings, they are dog well. alix: do they have to buy to get it? what kind of acquisition with a have to do? >> it is a theme we have been hearing from the banks and the private equity firms that have invested in that business, that this is an area of activity, this is the place where people may b