guy: -- vonnie: that is neil duane, allianz global investors global strategist. we have the dax in germany down .7%. it is just being outperformed to the downside by the cac 40, which is down more than .75%. the same for the ftse mib in germany. -- in italy. dialysis machine maker -- today we learned cvs is getting into that business. it is trying out different options. if it were to get into that otherss, it could dent business. one of the other stocks not in these indices, ericsson, it had a run of earnings beats but today ended the run. it had a warning saying the first big deployments in asia will cool down margins and that is not pleasing ericsson investors. that stock down double digits. this is how markets settle the day. now let's get back to washington, where members of the house financial services committee are questioning facebook's david marcus on the plan for the digital currency libra. >> you are certainly backed by other securities. is that not correct? believe no one will buy libra as an investment because it is designed for stability. that is num

mohammed el-erian of allianz is here on what should happen and what will happen. they could be two different things. >>> as we all wait on what could be the most important federal reserve meeting in a decade, investors also have to focus on what is one of the busiest earnings weeks this quarter. with a third of the dow jones industrials names coming in at 27% of the s&p 500 set to report, it's touch and go for the dow jones. we were up about 20 points, now s&p better by 10, we've got the nasdaq up 60. plus with millions of followers, he made more than $15 million last year with his wild personality-driven youtube video. podcasts and merch, merchandise, right? internet superstar logan paul is here in studio live to talk about the business of being a cybercelebrity and the challenges of being an online maverick. >>> plus, where does he stand, jump or punch, because that's what he does, moves all over the place or even do the splits, when it comes to the new social media battle between facebook and google's youtube? that and the gasparino report heard round the busin

from a host of existing investors and tooting chinese company 10 cent and german insurance giant allianz this fall used the fin tech at more than 3000000000 euros making it one of the most valuable companies of its kind in europe it is the most valuable german startup on a par with other european success stories such as swedish online financial services company china and transfer wise the u.k. based money transfer service all their high flyers include british pair b.g.l. and north which are both valued at around 2000000000 euros. and 26 is headquartered in berlin and recently launched in the us with plans to expand further in the coming years. so in terms of expansion we are very much focused on the one that's deep enough to predict you know 24 you are good so we're active in further what we have launched in the u.s. last week so that will be the big investment into making its way 6 a big success in the u.s. . these are heady times for the online bank but it hasn't all been good news for the company recently in march it was reported that a customer's account was hacked and emptied of 800

cio of global equities at allianz global investors.xt, we are going to talk more about the launch. an hour of change and challenge in a decade of hope and fear, in an age of knowledge and ignorance. why some say the moon? why choose this as our goal? and they may well ask, why climb the highest mountain? why 35 years ago fly the atlantic? we choose to go to the moon. andhoose to go to the moon do the other things. not because they are easy, but because they are hard. matt: president kennedy there seven years before it happened and now we are 50 years after the launch and the landing putting the man on the moon. the anniversary is tomorrow. this is bloomberg. >> it is one small step for man. one giant leap for mankind. ♪ >> 60 seconds. that is one small step for man. one giant leap for mankind. 50 years since the world was gripped by those historic images of apollo 11 landing on the moon. that summer, the world was caught by moon fever. charttoppers like david bowie and creedence clearwater revival. the space race was driven by the riva

elsewhere, the preseason friendlies continue — including the biennial audi cup at munich‘s allianz arenaed fenerbahce in the semi—finals. thomas muller scored a hat—trick as the german champions hammered the turkish side 6—1. earlier, tottenham hotspur beat real madrid in the first semi—final. a wayward back—pass from marcelo was pounced on by harry kane who scored the only goal of the game — midway through the first half. spurs will now play bayern in wednesday's final. we are looking to try to be better every single day, to try and improve in the way we play, to try to establish a strong season. i think we wa nt establish a strong season. i think we want to start the season with a good dynamic and start to win. that is why i think we are happy because i have seen our dynamic from the beginning of the season, i think is going well. american caeleb dressel was the standout swimmer of this year's world championships which finished on sunday. the 22—year—old won a record eight medals — six of them gold. he also broke one of michael phelps's world records which had stood for 10 years. but w

of around madrid in a play season game in munich pitino watched his side be trial one nil in the allianz arena thanks to this hurricane go however afterwards he seemed to betray his frustration at the talk with chairman daniel levy about the lack of control he has a transfer. i am not in charge i don't know nothing about the situation of. my players i am only go chin them today i think i am the coach if you don't change in that story as it did but every. no no but that is not a question for me going on. maybe you have some question that i can no answer you know. like really surely the money too must have some say in which players are right and which players leave them i think it's on stock question but so if it's not a day thing i think i will spew is not my. is difficult don't know this but i think it's not in my hands it's not in my hands or this player was not involved in the match kind of didn't travel with the real madrid squad it comes a few days after his proposed move to china collapsed. no no not for a carrot didn't travel with us because he didn't feel that well and i talked to

anning us from frankfurt is investment strategist at allianz global investors.for joining us. what do you take from earnings season so far? typically, we see a lot of companies beat in the u.s.. 76% is the average amount of companies. analysts bring down a lot of times their estimates in earnings season to help them out. how does this season look to you? >> i am actually not surprised wall street has under promised and overdeliver. , you were the quarter expecting negative growth for an earnings depression in the u.s.. where we stand now with one third of the companies having reported earnings of plus 7%. cyclical sectors have fared worse than defensive ones. about is theprised positive delivery across all sectors apart from the exception of energy and utilities. overall, this is a sign that u.s. recession is accelerating, but not near a recession yet. u.s. economy decelerating, but we are not near recession. i want to get your take on asset bubbles after i give you one headline. australia's benchmark index closing at a record high. add that to the u.s. s&p 500.

. >>> let's turn now to the chief economic advisor at allianz. always great to see you.u thank r joining us tonight. >> thank you, bill. >> what in your view is the message otothe u.s. market right now when you bear in mind that long-term treasury yields are close totw year lows and now following the osaka summit we still have tariffs, 25% tariff for the foreseeable future. why areige at an all-time right now? >> three reasons. one is the truce. i like calling it the cease-fire. things won't get any worse. second, the huawei news was a surprise to the market, so that suggested an easing of tension that goes beyond the headline of the cee-fire. and thirdly, it keeps the fed in play. meaning that because the uncertaintyasn't been fundamental elicited, the fed is nlikely to cut july. so the markets like the cease-fire because calms things down without taking away the fed rate cut. >> are you surprised, though, at the lack of volatility that we've had just recently anyway? i'd say about three months ago, every time we got a trade headline we were eit

allianz data systems one of the 2.5%performers, down despite the cards with logos and all that good stufft to the latest on brexit and the race for u.k. prime minister which should see clarity next week. boris johnson remaining the frontrunner but supporters of jeremy hunt are counting on a late surge of support from conservative party members. joining us from london is just check woman. it will be a big -- jess shingle men. until polls do not close monday. after that we are expecting the results on tuesday. theresa will remain prime minister until wednesday. the handover will happen on wednesday afternoon. she will do her final prime minister questions in the house of commons and then she will go to is at the queen, along with the winner, who we assume is boris johnson. he will visit the queen and then returned to number 10 with 100 days to go before the 31st of october 2 deliver brexit. vonnie: talk about first 100 days. tell us about the abstainers yesterday. could there be a surprise in store? jess: we had big the east's who abstain from voting -- from voting because they are --cerned

advisor of allianz, who spoke with jonathan ferro about u.s.and the fed. >> the one thing that economies are going back and trying to figure out is do we have such deep structural changes in the economy that we can run this economy at high growth and low and stable inflation? that is critical for the fed as well. there's a lot of work to be done in terms of understanding the new structure of the economy. jonathan: chairman powell exclusively communicating this idea that an ounce of protection is worth a pound of cure. that doesn't sound like a man who's about to cut rates. where do you see this playing out? >> i'm baffled by this notion that an insurance cut is 100 basis points. an insurance cut is not 100 basis points for two reasons. one is you don't want to usable your ammunition now. secondly if you really need to cut by 100 basis points, it is well beyond insurance, there is something wrong with the economy. the marketplace i think has gone too far, but that is the history of the market. the fed gives a little, and the market pushes it eve

forecasts continue to disappoint -- s&p 500, but plenty of forecasts continue to disappoint, including allianz. sayings well, elon musk they will eventually be profitable, but that is not the primary goal for the coming quarters. and $1.12 was, lost on every car sold. that stock is down. on dwindlingher supplies and concern that demand is going to be slacker. the other big central bank today, talking about the ecb in a moment, turkey's benchmark , in cut 425 basis points line with president erdogan's plan for the country. .he lira is stable guy: amazing. getcut 425 basis points and your currency going in exactly the opposite direction. let's talk about the ecb. this is maybe not the reaction mario draghi would have wanted. initially, yields went down. he says inflation, we are really worried about it. someone asks, why didn't you do anything this time around? he says we didn't even talk about doing anything this time. yields go exactly the opposite direction. we are -41. an amazing day in terms of bond market action in europe. let's take a look at other assets as we continue to focus on this s

rishaad: yes, also, let's have a ok at -- allianz's chief economic advisor saying an insurance cut by federal reserve is not 100 basis points, adding that he is baffled by such a thought. the opinion column first said such a need for a rate cut would indicate something is deeply wrong with the economy. >> it's a relatively number we just got and speaks to the u.s. being able to resist the downward gravity from what the happening in the rest of the world and that is good news and i think that that reflects that the u.s. is still more closed in terms of other economies. the big data is coming this coming friday. we need the household to continue to be robust. that is key for the u.s. to continue outperform the rest world. i would look at that number a lot more than the other numbers up to friday. >> what are you looking for on friday? >> i'm hoping that you're going get the trifecta of job creation above 150,000 after last month's disappointing number. that you see a wage growth saying -- staying about 3% and that you see the labor participation rate going up. that's what i hope. i susp

light of that pressure and the strong jobs report today, i am joined by the chief economic adviser at allianz so welcome to you both mohamed, when do you go to queens >> so, october next year >> next year, all right. so we've got a long lead time, you know, to get all your thoughts on this before you are in the land of academia. that's actually a good launching point for this discussion today. do you think the fed is still going to cut rates at the end of this month >> yeah. i think you're going to get 25 basis point cut this month i think putting it as an insurance rate cut is the right way. the economy is not in trouble. today's employment report actually is very good news for the economy. and it's good news long-term for the markets. >> mike at jp morgan, medicine of course ohamed basically said if you ask me why they're going to cut, i could come up with something, but basically i think they're going to cut because they've told us that they will is there an element of truth to that >> yeah. i think he's absolutely right. they cannot afford another miscommunication kelly, i think we've got

our investment committee today, joe terranova, jim leventhal allianz global investment strategist we begin with the countdown to the fed today. that's what everybody is talking about including steve liesman who is in d.c. following the money for us i guess it's pretty much a foregone conclusion on a cut >> i think that's right, scott i think there are some questions as to whether or not the federal reserve also were to end its balance sheet reduction. supposed to do so in september a lot of talk on the street that maybe they do that today along with cutting rates doesn't really make sense to be tightening up financial conditions through reducing the balance sheet along with cutting interest rates and also, i see a big question about the guidance worth taking a look one last time at where the market position -- here are some of the four keys to the fed elevate and repeat the uncertainties that were repleeth in the last statement. act as appropriate that's the guidance it's going to provide for the future. and the question about ending the balance sheet reduction. take one more look he

a european equity portfolio manager at allianz global investors. great to have you with us.s in the united states of america and the language from the federal reserve, it is going to exert at the very minimum more pressure on european central banks perhaps to do more. how important is today for the scene setter for you for european equities? guest: i think it is incredibly important and comes at an interesting time. on the one hand, we have seen global trade data treading backwards. economic data more broadly weak at the moment. that was partially upset by surprisingly drawn jobs data on friday. the market in the u.s. is pricing in one interest hike at the end of this month. investors will be watching closely are signs of any moves later in this year. the ecb has changed directive in recent months to a more dovish tone. that will provide some support to markets. nejra: we have been talking all morning about what might happen if the fed in any way disappoints. commentary on the bloomberg about a dove trap. u.s. equities might take the direction from powell this week, but what

yesterday, one of the street's most closely followed economists, allianz chief economist, mohammad el-erian told "the claman countdown" quit your guessing, it will be a 25 basis point cut and why he says the fed's earlier mistakes shouldn't dictate what they do now. >> they shouldn't have hiked four times. they did, so i can understand why people want to push for more, but i think at some point, you can have too much of a good thing. what do i mean by that. if they cut by 50, people are going to say wait a minute, what's going on, is the economy really in trouble, what are they seeing we're not seeing. if they cut by 50, we are going to have less ammunition. liz: to the floor show. okay, guys, is the fed running the risk of having less ammunition when we may need it in the future? what could happen if the fed decides on a half point cut? if you think that's going to happen, john. >> well, like he just said, if we might need that in the future. we don't know if we need that in the future, right? there's so much happening globally, the uncertainties and the unknowns, that the fed better hold

alix: tuning is now are burns mckinney, allianz global andstors portfolio manager, lisa erickson, u.sment head of traditional investments. i thought the mandate for the fed was stable employment and inflation, not global risk. what was your biggest take away yesterday? lisa: i think the biggest take away in terms of, as you point out, there mandate, is they are really trying to do what they can to support the economy. certainly while we are seeing some decent signs still from the u.s. in terms of growth, there are still on a bigger picture scale risks that could derail that. when we look at our global health indicators, we do see that while there have been some signs of stabilization in individual countries, really there is a trend of downward momentum globally. that can impact the u.s. economy. what you see is the fed reacting to that, and we think that is good for markets. alix: the fed fuel rally, how long does it last? are you buying into it? burns: we talk about windows good news become good news and bad news become bad news. i think probably, the time that reversal ist when inve

miss "squawk on the street" tomorrow we'll be joined by mohamed el erian, chief economic adviser at allianzrrow. back in a moment t not when to u. do i use aflac when the kids get slime in the plumbing? no. that's home owner's insurance. slime in my motorcycle. no. that's motorcycle insurance. slime everywhere? ughhh nooo, there's no insurance for that. do they help when i have bills health insurance doesn't cover? yeah! that's it! aflac! gross guys. get help with expenses health insurance doesn't cover. get to know us at aflac.com >>> final check on the markets, flat up about 2.5 on the dow, the s&p down a little over a point, nasdaq down 295. a big week in terms of corporate reports. we've got the big jobs number on friday and the fomc meeting on tuesday and wednesday and then as you heard cramer talk about, we have apple's earnings, which people will be watching closely. make sure you join us tomorrow thanks, michelle, for being here the whole time >> thanks, michelle. >> "squawk on the street" is next ♪ ♪ >>> good monday morning! welcome to "squawk on the street." i'm carl quintanilla w

becky is off today our guest host mohamed el-erian, chief economic adviser at allianz. end the day, 205 on the treasury on the ten year. >> let's tell you about some of the big stories investors will be talking about today capital one says personal information about 106 million credit card customers and applicants has been exposed by a hacker not just exposed but effectively stolen the alleged hacker was arrested by federal agents in seattle she is accused of breaking through a firewall to access data stored on an amazon cloud server a lot of people are going to be watching capital one we had a conversation about aws and whether, you know, most of these firewalls from what i understand from when we had the conversation in the 6:00 hour are fully maintained by the client, not the cloud storage company. >> which is what we said at the time. >> so how much people are going to focus on aws is a fundamental question, but given her history of having worked there, whether people will look there as well several quarterly result out this morning from apparel maker under armour i