mcdonald from allianz global investors. 6 billion. yep, that's right. $6 billion, oh, to be the man or whom that pressed that. we'll take a look at deutsche bank's costly mistake. coming up next. ♪ manus: welcome back. this is "the pulse" live on bloomberg television, radio, also streaming on your tablet, on your phone and on bloomberg.com. troubles in an apparent error. deutsche bank reportedly sent about $ billion to a u.s. hedge fund client in june. before recovering the money a day later. here is hans nichols. hans, this is a pretty significant amount of money to send to the wrong destination for anyone. hans: i think that is correct. we have $6 billion. it was trovered next day. the financial times initially broke this story. we should give them credit. i want to show you what the receipt did when they reported it. this is one way to see what foreign things are doing. take a look at this when it was published. it recovered in the same way that deutsche bank recovered some of that $6 billion payment. what this had to do with is at

you may recall that when walgreen's and boots allianz combined, when walgreen's acquired butz allianz, there was a lot of talk about walgreen's doing a tax inversion with that acquisition. they ultimately decided not to. there was obviously a big firestorm in washington about that. i mean, i think ultimately, though, the ceos of those companies are focused on how it is that they create shareholder value. and so i think the bigger question is what their charge is, and so that is their charge. if that's the charge they're focused on all the ways you'd do that including tax inversion. particularly dealing with what we're dealing with here in terms of our corporate tax rates in the u.s. >> sidney, thank you so much. appreciate your perspective. sidney dillard. >>> on wall street stocks fell on mixed earnings results and weaker than expected economic reports. more on that in a moment. by the closing bell the dow jones industrial average fell 23 points to 17,755. nasdaq ended 21 lower. and the s&p 500 was off by nearly a point. >>> to the economy, which slowed sharply in the third quarter.

it has been a fantastic part of allianz over the last ten years. since we acquired it the company has grown 20% compound both in terms of assets and earnings. it's been a spectacularly positive story for us and it will continue. actually the outflows and the performance issues started when mr. bernanke whispered the word taper. that was long before we had the personality issues and that gets often confused in markets. investors are thinking about how they invest in fixed equities and other asset classes and if you imagine a rise in interest rates and the sore of the traditional products become less effective that's just a fact we have to deal in. that's why pimco is focusing on income products and alternatives and they are doing really well so despite outflows we see from the core products, we see inflows in the future growth platforms and that's giving me a lot of confidence that at some point, sooner or later we'll turn things on flow and earnings. >> yes, please. >> if i may just follow up. >> cutting people and cutting costs, we really want to

it is between that and how allianz. and note.ake a monday, francine lacqua and myself in london.ll join you from our wonderful news bureau. a composer lived there a million years ago. "surveillance" from london, 5:00 to 7:00 a.m. in london. look forward to that. good morning. ♪ tom: we love to take credit where it is not do. glencoreines you saw, doubling off the bottom. david herro single-handedly moved the shares of glencore. of course, i am kidding. but we are thrilled to have him on the set as we talk about that mining disaster. pence, which are think it about $1.98. we are into farthings next week when i am in london. right now. chart this is a russ koesterich chart as we go to a single-digit 20 minutes for you. there is the 10-year yield coming down through the financial crisis, august of 20,007 -- of 2007. 1.50 10-year, the blue circle out there right now. russ koesterich, that is to gain -- that is game changing if we get there. --s: i go back to the fact it had to be real rates. you had this precipitous drop in inflation expectations. , there is aadmit lot of this inflat

now the bond king is suing former employer and his parent company, allianz asset management for $200 million for breach of contract. gross also claims that pimco plotted to drive him from the firm he co-founded because managing directors wanted his huge bonus for themselves. the company says the lawsuit has no merit. gross manage as bond fund at a different management group. >> this year's nobel peace prize awarded to national dialogue quartet in tunisia. this group is recognized for contribution to building democracy. after the revolution back in 2011, the nobel peace prize worth $972,000. it is being presented officially in oslo on december 10th. live pictures out of norway. not the pope. not john kerry, but still a worthy winner there, nicole. >> congratulates there. controversial bio pic of apple founder steve jobs opens today. >> you're issuing contradictory instructions, you're insubordinate, you're miserable. >> even if that is true that doesn't sound that diabolical to me. >> how screenwriter aaron sorkin addressed some controversy surrounding this film. >> houston astros kee

allianz joins us live. welcome back. >> thank you, scott. >> what's your view of where we sit and where you think we could go. >> i start from the simple notion that we are in a secular rise in volatility. we are shifting volatility regimes. when that happens, if a few things result. sflo trade up in quality on the rebound, and then look at sector that is have been completely unhinged. emerging markets have been completely unhinged. they're broken in terms of markets. energy. you know what, high yield is on the verge of getting there as you discussed yesterday. there's going to be a lot of exciting opportunities. i don't think this is a beta positioning. this is much more for nimble investors with a lot of market to market risk. >> i'm sure you probably had a chance to either look at the icahn video or hear the highlights, digest it, and perhaps even hear from mr. icahn himself yesterday on the program saying that in effect the joy ride is over and that a potential catastrophe is ahead. >> what i do think c

allianz is also a defendant in this lawsuit, and we'll be reaching out to mohammed alarian and othersed in this suit. >> thank you for that breaking news. andrew ross sorkin. >>> next up alibaba seeking to reassure investors after the slowdown in china coupled with, of course, what has been a struggling stock price for alibaba. he writes in a letter recently signals china's economic slowdown have industryingered widespread concern, and i believe overreaction around the world. i believe that for the future the advantages in the slowdown of the economic prospects far wrout weigh the disadvantages. china's economic twomt is no longer in need of increasing its numbers, but of increasing its quality. speaking of quality, this letter is a reversal from last quarter. last quarter he said because so many are disposable skuktive guys alibab ais insulated. he says they're not. they're more closely tried to the economy. western economies are good at spending the money. they believe they will earn in the future. he is saying the chinese save too much money. he wants them all to get credit cards,

expecting, the imf to say global story continues to deteriorate joining us on cell phone is el-erian allianzk you. >> what are you expecting from imf. >> we think maria one that globally economy continues to be -- second the balance of risk is now on the downside. and thirdly, they are going to urge central banks to stay as stimulative as they cannot because the best thing to do but the only feasible thing to do right now given the -- >> do you agree with that, given what you are seeing in the global economy do you agree that -- central banks should not start tight noung. >> look it is really tough, because central banks have been the only game in town. they have really used up -- and time now to transition to a comprehensive policy response it is really tough because you know, chairman bernanke we going do have on reminded us when you go on conventional about benefit costs and like understand that benefits right now pretty low cost and risk mounting. >> so in terms of of the fed not raising interest rates isn't that you know a telltale sign alone they can't raise a quarter point things are

>>> when we come backs, we'll wrap up our special conversation, and later today, the chair man of allianzon everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? (vo) wit runs on optimism.un on? it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world. . >>> we're wrapping up our conversation about the future of investing with bill miller and brian rodgers. good morning -- i don't need to say good morning again. here's the question. you said you liked netflix last time, and i wanted to talk about amazon. i think of you guys as value guys. i find it hard to connect the word amazon and value except as a prime customer, but not necessarily as a shareholder if you're going to own this for 20 years. am i crazy?