so as a result, we have a little bit more of a beta than one. cash is interesting because we run the cash overlay. it is saying that the cash will go down at about -- beta is 58% or something. i'm looking at orange. it stands to lose 22%. >> what this is also saying, these two charts on the far right is the two asset classes that contribute the best in stress environments, or three, are fix th fixed income, but the returns are going to be super low, and the other two are absolute return and private credit. they resist down markets the best, those three. >> you will see the negative beta for identificationed income is two-thirds -- it's actually whatever we have right now in the portfolio, the treasury portfolio and liquid credit portfolio stand to provide diversification under this stress scenario. right? contribute a little bit to the positive. absolute return is also going to fare well under the extreme equity stress test. it will stand to lose -- stand alone about 6%, and on the contribution, i'm looking at the upper left chart, absolute retu

in, i bought the smh >> quality over high beta. that's the argument. >> exactly and the smh was enough for me. that's enough risk for me to step because i don't have the confidence yet to borrow your term yesterday, on the unpredictability of the headlines that i could see we're going to take out, let's say, the highs for the year in advance above 3,000. we do that, i'm completely wrong, pete is right, facebook's the place to be, netflix is the place to be, all the f.a.n.g. names, high momentum >> not all the f.a.n.g >> well -- >> not all >> they are going to be the moon shots. >> the chips are up 9.5% in a week, in and of itself the some of the other tech stocks that have rallied, amd up 19%, nvidia, 13%, lam, 12%, broadcom, 12%, cisco, 11%, sky works, 10% gains, doc >> and a lot of those have things that are inside of most cellular devices and/or computers, of course and that's a great place to be. i talked, scott, about the big selloff that we saw and i thought overdone and facebook, for instance, when it was out there on a sund

. >> we often talk about beta.market rolling lower and you want to be in lower beta names and this has a beta of 0.3 and you think it's lower risk and take a look at how it performed last year peak to trough, it declined 23% and that doesn't seem low beta on the down side it has to do with high expectations and when you put those two things together that could have a lot of air in it and that concerns me >> mike went into the calendar aspect of it and you were bearish and you agree with carter and it doesn't act well and this thing could be back at 75 where it was a month ago. mike's trade structure and if you're convicted on the fundamentals and you'll miss and guide down again and you don't like the whole trade situation and you don't like the chart setup then you do want to actually target a put spread, right? where you're risking what you would possibly be making if the stock were to go down toward the short strike at 77 1/2. >> that short strike might stay the same >> you're getting more bang for your puck, bu

it is really a beta play on oil. get an indication demand is increasing or geopolitical tensions are rising, it is likely that to bode well for the energy sector. romaine: i'd like to go back to this fed cut on this idea that we get the cut as the market expects it to be that that would add fuel to the fire. is the cost of capital really holding this market back right now? >> we agree. we don't believe it is the cost of capital. clients are programmed to say yield curve converts, i need to understand what the problem is. it's not that you occurred reflects a problem, but signals telling investors you should be concerned. signal, iting that removes that discussion from the table and brings confidence back. or 50 in july? >> it is out of my league to say. i don't know. caroline: great to have you with us. that is it for the closing bell. "what'd you miss?" is up next, where we will look at president trump's comments and much more. this is bloomberg. ♪ ♪ caroline: live from new york, i am caroline hyde. joe: i am joe we

you want this to be the new version of beta. you want to shove aside the dow jones and the s&p and have this be what beta is. but honestly, it has got 73% active share to the s&p and looks more like smart beta. david: it is an interesting problem. if we go back 120 years to when the dow was created, the dow was actually set in motion to sell newspapers. we started counting things that did not have a fundamental measure behind it. that is how the dow came into being. then we decided to start counting things based on their size. there is not a good or bad decision about that, but at the end of the day, we live in a world now where information, asymmetries, new pieces of data that are not just macro descriptors but get into the guts of what a company is about now actually play a role. now that we have the ability to integrate that kind of convergence of big data and other forms, we now have the ability to actually measure real quality, real performance, and we can show a different style of corporate views. scarlet: quickly, talk ab

you want this to be the new version of beta.ou want to shove aside the dow jones and the s&p and have this be what beta is. but honestly, it has got 73% active share to the s&p and looks more like smart beta. david: it is an interesting problem. if we go back 120 years to when the dow was created, the dow was actually set in motion to sell newspapers. we started counting things that did not have a fundamental measure behind it. that is how the dow came into being. then we decided to start counting things based on their size. there is not a good or bad decision about that, but at the end of the day, we live in a world now where information, asymmetries, new pieces of data that are not just macro descriptors but get into the guts of what a company is about now actually play a role. now that we have the ability to integrate that kind of convergence of big data and other forms, we now have the ability to actually measure real quality, real performance, and we can show a different style of corporate views. scarlet: quickly, talk abou

and they are one of the maybe startups right now that hard trying to hold her ownership of beta. users away for all the big albany by google and facebook and they're going to see how one of them will. so why didn't you tell us a bit more about a cool water this. so did it was a personal data marketplace it's a platform for individuals to aggregate scene sell their own data the basic premise being united individuals create mountains of increasingly valuable digital data i did it basis and for the most part we don't really partake in the economic value chain of the data in any meaningful sense of the word partake and that's kind of crazy so we sit on top of a bunch of different social platforms like facebook twitter linked in instagram tumbler meet up and so forth we sit on top of bank account information so transactional spend on debit credit card and so forth and then people are connecting these different data sources of compiling that data in one place you are encouraging me to take ownership of my beta which also means that as there are more the more ways to govern. i'm also be

this has a beta of about 0.83, think it's lower risk.med last year peak-to-trough, it declined 25%. the market overall was 23% it has to do with high expectations high valuations. when you put these things together, the down side can have a lot of air in it that concerns me. >> i would make one point about the trade structure. mike went into the calendar aspect of it if you are really bearish and let's say you agree with carter, it doesn't act well and you look at the charts and say this could be back at $75 where it was a month ago. you know, mike's trade structure, it's okay, you'll make some money, but if you're really convicted on the fundamentals, you're going to miss and guide down again and you don't like the whole trade situation and you don't like, you know, the chart setup, then you do want to actually target maybe a put spread, right, where you're risking what you would basically be, you know, possibly making if the stock were to go down towards your short strike at $77.50. >> and that short strike may stay the same, so that's

. >> good beta here in clyburn country! >> this year, congress and the clapboard has 405 pounds of fish in the fridge and candidates are coming by for a tradition that started as a can queue for campaign volunteers who can't afford to pay for pricey fund-raisers. >> after that evening, you said to me that this was a place where an ordinary person like be to rub shoulders with an extraordinary person who is about to become president of the

bloomberg beta, the venture capital arm of bloomberg l. spmplet an investor in slack.reaming on twitter, check us out there. follow ticktock on twitter. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. daybreak to account australia." paul: the dollar weaken, the key factory gauge fell the most on record. china cools on u.s. treasuries, its holdings fell to a two-year low

bloomberg beta, the venture capital arm of bloomberg an investor in slack.e streaming on twitter, check us out there. follow ticktock on twitter. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. >> this is bloomberg daybreak: asia least. -- this is bloomberg daybreak: middle east. >> could too much change raise alarm? wilbur ross tells bloomberg g20 is not the appropriate forum for washington and beijing to resolve differences. the trump administration will send a thousand more troops to the middle east.

we are seeing the blue line, this is the ratio between high beta and low beta stocks and we see high beta have underperformed and those include the tech industry. that is the blue line the big move downwards through may and into june. the white line is how many price , the market is pricing, you can see that coming down in that tends to weigh on high basis stocks. finally, a couple movers, our stock of the hour from yesterday, radiant and united tech -- raytheon and united technologies both falling. united technologies down close to 7% over two days. investors still concerned about what might happen with that deal. bloomberg intelligence saying it will pass and the antitrust -- will pass any antitrust concerns. the president says he has concerns and that is, as ever, a wildcard. david: quite a different story from yesterday. people having second thoughts. many thanks to emma chandra. coming up, president trump calls for rate cuts. what does he see in the economy? we asked the former director of the cbo. this is bloomberg. ♪ david: this is balance of power on bloomberg television. we

my view was they spent decades getting to an efficiency that we matched with a beta product. so i was pleased western union said we are already as good as the decades they have invested in building out the capability. with moneygram, we know out of the gates we can make their system much more efficient because today western union and moneygram pre-fund accounts throughout the world so they can make payments. moneygram and western union have negative working capital and we allow them to not pre-fund and to shoot payment in real-time which is a massive savings in terms of efficiency, not just because it affects the capital cost, the outlays, it is a dormant asset when you pre-fund, sitting there waiting for people to make payments and that is the transformational thing that xrp has, its functional digital asset allows for the industry. emily: how much equity did ripple get in this deal? >> we committed to invest up to $50 million and we will own somewhere between 6% or 7% and 10% of the company. they will decide over the course of the year, to that $50 million they want to go d

rufu beta be the new marble up and it plays an important role in dating rally for those companies and you have to understand with i'm from where they come from os the movie. it's a tracker it tracks your movement to tracks your calories it tracks your heart rate . you can sync it up with your phone via bluetooth connection. it works in it's a tool that didn't used to exist you know i just basically tracked every step i made my heart rate and i did and i did it here so this is the number of steps that have taken 6 minutes and. i have $3003.00 steps toward my $10000.00 you know it's a powerful $12.00 punch. if you think about the data that is generated by self-acting devices for apps the freeze on all phones may pass that veda can take in favor of the manufacturer of the device it can leave share of where your the 1st element is your house and tell you which why that means to you under the studies. and how do you design better the routes that is on. and on the parts but equally for people like you with your particular lifestyle options so this data has a life of its own. the tracker wil

complaints would notice of violation issued, 161, a beta complaint is 403. number of cases sent to directors, 31, and routine inspections performed was 304. code enforcement services, number of cases sent to directors hearing was 126. number of order of abatements issued, 30. number of cases under advisement was nine. number of cases was 122. code enforcement inspections performed 290. number of cases referred to b.i.c., none this month, we do it every month -- every other month. this month, the numbers were a bit down because of the code enforcement outreach because of the lean cycle was down a bit code enforcement outreach programs, total people that reached out to was almost 48,000 , counciling cases was 1561, community program purchase attendance was 1148 and cases were resolved were 219. >> thank you, mr. sweeney. just before you go, maybe you could on the next commission meeting get back to us on the 655 alvarado and the 49 hopkins avenue, and go through that and make sure to address the public comment here today. i believe that will be that will be yo

apple also beta. well to one of its signature products the i choose music download service. the future of music are i can see is not one out but 3 the music apple podcast and apple t.v. . the end of i choose which started in 2001 was long expected updates to privacy measures include a new sign in as an alternative to logging into apps using social media accounts hiding the user's e-mail address and data. on your debacle next time you're in a new dark mode will allow i phone apps to be viewed with a black background. and apple announced an update of its powerful $6000.00 mark pro and there were murmurs of dissent when a $1000.00 models or stand was slated sometimes even devoted followers balk at the price tag. u.s. presence donald trump us off of the u.k. what he calls a very substantial trade deal once britain has left the e.u. on the 2nd day of a state visit to trump met prime minister to resign may they have a discussion with business leaders from both sides of the atlantic significant anti trump rallies taking shape while parts of london on security lockdown donald trump

the public beta version is expected in july. >>> we continue to follow several overnight shootings in the east bay, the peninsula and in the south bay. one of those was a deadly freeway shooting and we'll have an update in just a couple of minutes. >>> the president set to launch his re-election bid tonight. in orlando, florida people have been waiting more than a day just to get a seat inside. >> and right now we want to take you above the fog of san francisco and the bay. there's sales floor tower peaking out just a little bit. you're watching mornings on 2. >>> this is mornings on 2. >> good morning, thank you for joining us. we're taking you live to the new york stock exchange. looks like a very good opening across the board for the dow. headed two-day meeting indicating possible change to rates. we'll have more business news coming up. >> summer a couple of days away i'm frank mallicoat. >> official summer day. good morning i'm pam cook. it's definitely going to feel like summer as you head into the east bay. >> if you want some relief head over to the coast because that's where

high beta versus low beta, cyclicals versus the defensive, the bond proxy is an interesting story.is look at the european close. taylor: is all about a patient market as well here. we will call -- we will call the topline equity major market average unchanged. and s&p mostly flat. a little bit of an elevated fix -- vix. it is all about the bond markets today. you're getting a lift in yields down from a 2.06 two a 2.09. up in yields, down in the price of crude after inventory came out in the last 60 minutes or so , you are seeing crude continue to fall to hold onto the key $53 a barrel. the story has all been about big tech and the outperformance yesterday. that continues to be the theme. the nasdaq unchanged, up less than .1%. adobe higher as revenue gains are topping estimates. they have an expanded portfolio. analysts looking for strength in the digital media space. getting into crypto concern -- getting into cryptocurrency, you wonder that is at the wrong time. .91% on suggestions that the red hat/ibm merger will be approved by the european commission without conditions. getting

microsoft is also getting in on the streaming market, and plans to launch a beta service in october.0:02:02,584 --> 2147483051:37:46,007 our technology reporter chris fox 2147483051:37:46,007 --> 4294966103:13:29,430 is at the event in los angeles. is it stadia? i should have checked, ido is it stadia? i should have checked, i do apologise. good evening, it has just gone 9:30pm in los angeles, and we believe it is google stadia, evocative of the stadium, an arena of gaming, that is their bright frontier. a big challenge for microsoft and sony because their cloud offerings are just in their infancy, really. sony has had one for a few years but it doesn't strea m for a few years but it doesn't stream games in ultrahigh definition. we will have a go on it hopefully at e3 and it will launch in october. there is a lot of talk about cloud gaming, of course, dave lee talking about microsoft's console yesterday. he challenged the head of xbox to say why are you bringing out a console when it is all about streaming? what are you hearing about this? well, it's a bit of both, really. with cloud

my view was they spent decades getting to an efficiency that we matched with a beta product.s pleased western union said we are already as good as the decades they have invested in building out the capability. with moneygram, we know out of the gates we can make their system much more efficient because today western union and moneygram pre-fund accounts throughout the world so they can make payments. moneygram and western union have negative working capital and we allow them to not pre-fund and to shoot payment in real-time which is a massive savings in terms of efficiency, not just because it affects the capital cost, the outlays, it is a dormant asset when you pre-fund, sitting there waiting for people to make payments and that is the transformational thing that xrp has, its functional digital asset allows for the industry. emily: how much equity did ripple get in this deal? >> we committed to invest up to $50 million and we will own somewhere between 6% or 7% and 10% of the company. they will decide over the course of the year, to that $50 million they want to go down and

. >>> como pueden ver el tercer partido de la serie final de la nba esta noche les tengo la beta y esen vivo desde la arena para que nos diga cÓmo estÁ el ambiente. >>> efectivamente, el tercer partido de esta noche esta postemporada para los barrios ha sido co complicada. tal parece que salen de una situaciÓn negativa para meterse en otra. con todo el Éxito que han disfrutado los Últimos cinco aÑos ha tr traÍdo desgaste fisico. >>> hemos jugado mÁs de 100 juegos por cinco aÑos consecutivos. no solo el equipo para la mayorÍa tenemos muchos jugadores que jugado muchas temporadas largas y difÍciles.hay un cierto nivel de suerte involucrada. hemos experimentado ambos lados. hemos sufrido lesiones como ellos. es parte del deporte hay que seguir adelante. >>> todavÍa estamos esperando para saber si jugara pero todos los indicios nos indican que clayton no jugara y perderÁ su primer partido. las apuestas de las vegas se estÁn tornando hace los toronto raptors. >>> y siento volar cuando salga del entorno jugarÉ esta podrÍa ser una serie larga por lo que no vale la pena arriesgar la lesiÓn y

-- theyrn union said have been around for decades and they said in our beta time when the product hadnched that we match the efficiency of what they were optimized. my view was they spent decades getting to an efficiency that we matched with a beta product so i was pleased western union said we are already as good as the decades they have invested in building out the capability. , we know out of the gates we can make their system much more efficient because today western union and moneygram pre-fund accounts throughout the world so they can make payments. moneygram and western union have negative working capital and we allow them to not pre-fund and to shoot payment in real-time which is a massive savings in terms of efficiency, not just because it affects but the capital cost, the outlays, it is a dormant asset when you pre-fund, sitting there waiting for people to make payments and that is the transformational thing that xrp as it functional digital asset allows for the industry. emily: how much equity did ripple get in this deal? >> we committed to invest up to $50 million and we w

alpha brainwave is a low frequency braen wave so pumping at one to five hertz something like that beta most part we are using every part of it, just some or more certainly areas so, for example, i pump a lot of -- beta frequencies, 30 hrtz, very, very high intense frequency, and uses a lot of energy makes me work hard newer one of the you youngster to win northern trust congratulations in fedex era began in 2007 you are a golfer. >> i am i was playing on saturday i realized just by calming down not choked up on club someone talking to you all of a sudden hit the ball when trying to kill it so hard how do you take this principal with a neurotransmitter really translate it to your game when you are on the course? >> yeah when i am on golf course i am able to literally step behind the shot, take a couple breaths a little bit breathing in easy sense about breathing being in right frame of mind before you hit breathing or that is what you are doing, you are getting more oxygen to the brain to allow brain to calm down relax not in-flight state, beta frequencies you are essentially, it is in

the reverse, finally especially in the last two days, we've had the more aggressive tocks, the high betathe way. you have semiconductors, the transports yesterday that were doing their part the question is can the aggressive stuff, the more cyclical ones carry the weight as treasury yields rise that maybe you're going to have to offset those defensive stocks pulling back a little bit. that's basically your fix right here you see it's not as dramatic on the comeback but the s&p, high beta stocks up 7% and obviously you're having some underperformance in the defensive stuff right here as the overall index guys, keeps bumping up against that 2900 level that we hit this morning. >> i guess a related point might be that bond yelleds have found some sort of stabilization which is why the defenses aren't working as well. is it enough of a confirmation from the bond market to get a green light for stocks all during may we talked about the big risk factor as a warning sign. >> you're still seeing a lift in bond yelleds this morning. i think there's room for yields to keep moving higher before it

hydro, up heey had a surprise beta in t first quarter -- beat in the first quarter. not terribly impressed. looks like the markets have another idea. provident financial no longer facing a hostile takeover. nonstandard finance was looking at launching that bid. some of the issues they're making the takeover difficult -- there making the takeover difficult. shares moving higher. 3%.ec jumping up nearly they are expanding their alliance. the big takeaway is that they are getting a $9 million payment with this expanded alliance. matt: thanks very much. some of your movers. you also may see big bank stocks continue to move after jumping in the u.s. yesterday. citibank and bank of america routing the most since january -- rallying the most since january. jerome powell signaled an openness to cutting interest rates. one would hope he is always open to cut rates if necessary. wells fargo analyst says if the fed were to cut rates, banks would party like it's 1995. he said it would be yet one more parallel with that year, when bank stocks were strong out performers. mike mayo

it exited beta in may. should we anticipate some more of "red dead?"u should be expecting more content for "red dead online." there will be plenty coming, that is what rockstar games has said. more content is also coming in for "grand theft auto online," which continues to be a big title five and a half years after the initial release. in terms of upcoming releases, we obviously have "nba 2k" coming, "wwe 2k." this should be a very exciting year for us. vonnie: are you interested in bidding for any other sports licenses? you mentioned nba. you also have wwe. what else are you interested in? strauss: well, the sports business is pretty well spoken for in the videogame space. the nfl property is under exclusive license. one of our biggest competitors controls the fifa title. we have brought out other sports. we have golf for example, we had boxing, we had hockey. but right now, our focus is on golf and of course basketball. vonnie: we are seeing more and more subscription models. what is your plan for subscriptions and indeed for streaming, strauss? are

our partnership with apple and the credit card that will launch at the end of the summer that's in beta and i feel good about the steps that group inside the firm is making to really build an interesting digital consumer platform for the long-term. >> how would you update investors on specifically especially those who are suspicious building a credit card is more difficult than it might seem >> it's not an easy thing to do but we're excited about the platform we have built and the partnership with apple it's in beta right now and there's some employees at goldman sachs and employees at apple using the card i'm using the card i like the way it works. i like the simplicity and the lack of friction when it comes to paying bills, looks at what you've spent,'s ease of use, i think it will be well received the early feedback indicates there will be a lot of interest in it when we finally do launch it later this summer not a lot more i can say about it at this point but we feel good about it and make sure it's a good product for apple's customer and our customers. >> finally, i hate to ask you

and they are one of the many startups right now that are trying to hold her ownership of beta. users away from big albany by google and facebook and they're going to see how one of the old. so why didn't you tell us a bit more about a cool water this. so did it was a personal data marketplace it's a platform for individuals to aggregate scene sell their own data the basic premise being united individuals create mountains of increasingly valuable digital data did it basis and for the most part we don't really partake in the economic value chain of the data in any meaningful sense of the word partakes and that's kind of crazy so we sit on top of a bunch of different social platforms like facebook twitter linked in instagram tumbler meet up and so forth we sit on top of bank account information so transactional spend. debit credit card and so forth and then people are connecting the different data sources and compiling that data in one place you are in car jamie to big quote and your book my data which also means that i've had for more than a ways to govern genuine data i'm also b

you want a little extra beta in terms of what you got in your portfolio. i would disagree with kevin on one thing, i believe stock picker's market all the way. i know etfs might be able to move along here and there but the opportunities within stock-specific names that get oversold when we get ail go rhythmic sells and let's be honest, the 5% up the other day, that was algos pushing up. i think they not only push down the markets but lift them up as well. >> i don't like the terminal value anymore. the new value is now called quality. if you focus on the balance sheet and say it will delever, you can go back into the stock and gage but if i'm going to pick a stock to go through the next two years, i want the protection of reduced leverage, advanced cash flow, even out-of-sector favorites that are considered to be quality -- exxon, intel people hate that name. chevron, pfizer, johnson & johnson, procter & gamble. >> you just named my portfolio, literally. >> oil is down look at the balance sheet on mobile look at the chevron balance sheet. look at the cash

data sources and compiling that data in one place you are encouraging me to big code and ship of my beta which also means that as there are more the more ways to govern genuinely data i'm also being in the car it's to track more and more indicators of my life so now these are the my graphics and my age but who knows perhaps a manufacturer of people would like to know what is the power well as the pole longest liver so i guess what you're getting at is i mean there is no limit to how much data collecting off myself i'm sure so i'm ok thinking about things as far as asset and leverage value and what kind of utility can i get in a marketplace that for me is a normal thought process in a normal setting that i'm comfortable with and i know it has obvious ramifications i mean it is i'm sure you're probably going to you know places we can all address it before you can get there but like if you're tracking all these different things about your life what does that mean for insurance implications right if you have a linked in account plus a credit card. plus that. you can now discern whether i'm l

we have been underweight because china is considered more of a low beta mark, actually.the end of the year last year, we found really interesting opportunities in some of the high-yield market in china. we actually had a big selloff in december, if you don't recall. u.s. high-yield markets as well as emerging-market debt market were throwing off pretty extremely. we took that opportunity to add to our exposure in china, and had good valuations and we are still invested there, but we have remained underweight. so we do think that china's growth, while it might disappoint some, we have been expecting more at six to six and have. we are remaining there -- 6.5. we are remaining there as trade discussions continue. we are not keen on the g20 meeting. we think moving towards some sort of deal i the end of the third quarter would be important. if we don't get that, we might have to revisit to the downside. amanda: still underweight china. what do you like in the yen space? latinine: we like america, which has a lot of trade languages to china. we know that we have china risk th

we've had some convergence in terms of beta compensation.oing forward, we think it will be much more challenging, and environment with lower basecase returns but higher volatility. in that type of environment, pimco should excel, given the breadth of our resources. manny: the reality is have a lot of people who help deliver performance, from 75 credit analysts to 100 core -- those people matter. what often people do not see is the need for investment inside the kitchen and the need for investment is growing one way. if you needed people 20 years people 20 years ago, you need 200 today. jonathan: up next, how people are investing in technology and their team. dan: we literally have teams at that look at senior portfolio managers, how we make decisions across markets relative to what is optimal. it reminds you how the brain plays tricks on you. jonathan: that is ahead in "a conversation with manny roman and dan ivascyn." ♪ jonathan: i hear so many people say i need a bigger team, big technologynvest in more, big data is the future -- help me u

play for macro volatility this summer >> the most impressive thing is the equities themselves are a betarade you get more of a small cap. then of course you have the risk of picking the wrong stock so that is captured by doing the gdx, the gdxj or the small stocks >> we often hear some other people on the desk talk about playing the minors as a levered way to play gold that is exactly the point. there are idiosyncratic risks there. it's a capital-intention self business there are a lot of things that play into it that could foul the trade if you're trying to make an explicit bet. we can basically take all of those other complications off the table if we do it this way >> along the terms of picking gold as a safe haven, how did carter do the charge as far as safe havens typically. >> people say it's not anything, a metal you pick up and put back in the ground. we know that classically defense ever things, the original was soap and cereal. we have biscuit companies that go back 200 and 300 years. from hershey chocolate >> mcdonald's, starbucks and dunkin' hitting all time highs, chipotle i

you are not getting paid for the beta, so to speak. that is a signal in and of itself.ndy, pimco made it clear we want to be liquidity providers, not liquidity demand errs. perhaps you want to be more defensive and step back. andy: we like investment grade a bit more. in difference from that interview on monday, the punch bowl has been returned pretty well since then. that has changed the dynamic a lot of bit since. em, less so high-yield. i like the idea there is high-quality junk out there. jonathan: relatively speaking. ?rishna, your thoughts krishna: i emailed bob. it was good writing with him but now he has gone a different way. our outlook is meaningfully different. we think there are five more years left in the expansion. as long as is the case, the likelihood that high-yield market -- it is not a market that will give you really high returns from a capital appreciation standpoint, but from an income standpoint, we think it is still a pretty good asset. jonathan: this is a good point i want to explore further. in 2009, you said that rates would stay longer. thoug

monetarily truck quantify i'm valued looseleaf beta being a new car hold up on your data your identitys a commodity and we have to understand where pumps are all going to come from us leave it's time to reclaim our cyber so should i have to put in them with something that cannot be sold we are creators we are activists we are geeks give us back our data just. examining the headline scientists are telling us that we have just 12 years to make unpressed any changes unflinching in this and i have to leave to a complete innocent absolutely sharon cosima stories with a global audience we've seen people making sacrifices this is what women want to see explore in abundance of world class programming the world is watching on al-jazeera. the british government is found to have broken the law in the ways told weapons to sound arabia in a case before the war anyone can. tell you watching al-jazeera live from doha with me for the. back to people also ahead iran shoots down an american drone saying it threw over its territory the u.s. so says a drone was in international airspace xi jinping in pyon

the fact it has taken years to get this far, essentially a beta test for drone delivery, suggests thatological and regulatory hurdles are still quite significant for this rollout. but when you think about its ability to empower one-day prime delivery, that offsets some of the inflationary pressure from fedex and ups. this is an important issue from amazon. taylor: jon, you heard tom talk about regulatory hurdles. we do know they need faa approval. any indication of what the timeline for that might be? jon: they have been working behind the scenes. we know the federal aviation administration gave them permission to do testing. they are still a ways off from coming up with the complete regulatory passage that will govern how the business will be conducted. as often happens in the high-tech industries, the regulators and policymakers let the technology evolve, then, along and set rules for the road. so far, we don't know when that is going to be done, but they are working on it. taylor: tom, talk to me about how this fits in amazon. so often, we talk about their high-growth profit margins

are the beta train and you get much more of a move out of a small cap miner than you will out of it itself of course, you have the idiosyncratic risk of picking the wrong stock and you have the jdx, or the you will sma stocll stocks or the gd >> i hear people playing the minors as a way to play gold and there are levered ways and idiosynchratic risks and they have operational challenges and it's a capital intensive business and other ways they play into it that can foul trade if you're trying to make an explicit bet on the commodity and gld is a clean way to make that bet and we can take the other complications off the table. >> in terms of picking gold as a safe haven, how carter did the charts look at some of the other stereo typical safe havens some people say gold isn't anything and it's not anything and it's just a metal, and we know that classically defensive things and the original with soap and cereal and there were no pharmaceuticals and they work well from hersheys chocolate and so forth and health care less so and the defensive areas of the markets and the utilities reits, treas

they're high beta names, they get punished relentlessly when one of them is bad news, they all go down, amd is a great example. here's a stock that hit multiyear highs. i think it hit three or four year highs on monday, it's down 12% in the 4 days since and that's in a good tape so that's like what you can expect going forward for the semis and that's why i'm not, like, racing in to buy the dip in something like broadcom >> so, liz, the ceo says we're currently seeing a broad based slowdown in the demand environment which we believe is driven by continued geopolitical uncertainties. this is a wake-up call on how destructive the trade war has been to certain industries, is it not >> absolutely. i think the real question here is are we getting to a point where we've raised tensions so high that they're hard to reverse? and i don't really know the answer to that on an individual security basis i think other people on the panel can probably answer that better than i but we are getting to that point where as an industry, as a sector, we're -- we can't reverse all of the damage that's done a

would tesla have gone up that's a high beta stock and tesla bounced because the market bounced and the reference point not withstanding and the reference point was there and at this point do you take some profit sure >> tesla is anybody's guess and one could say they have a viable product, of course, they do and i see them on the roads and i've been in one myself and you can't talk about valuation and anything other than it's a dream, and not the cars, they're real, but what will ultimately become of this company is too unknown and no one can speak on that with authority and there are bears and bulls and that's what makes it. >> >> this is a short-term call for you and is there a chance that we'll bounce off of 180 again and can we re-do this raid >> if you go back to the low that is want a positive development. you want to continue the momentum even as we revisit the low and the presumption is that you would break that low. >> first of all, great call, carter it was basically jumping in there where sentiment was as low as it's ever been and that was part of the reason he went that way

but that lucien looking like you know i put in pumps and came and gave my most elevated beta after one to 2 days of putting up with him so he gets to. put us in the envelope hondo we don't know why no lying in domes. you know in stephenville of a hopi lady in c.n.n. again you being c.e.o. money than happy. with today the same no feeling don't want to go slower while if you. need to come. by just a seek c. c. . c. c. has to go you're sick in miami arjuna for an organiser and i'm. here to see it a bit afraid to get rid of us and to get to get outta here quick i can i mean a link is here that there was. got out of it in the letter to me when i'm mad as hell and remembered that it did make it not to like going to go off then like i was there now says you know a very good stuff you are getting on though i don't believe. it which makes you feel so sick. that you know when to say your prayer nothing else on the dog that you look at these look like they need. the mobility feel like the folks. in them don't need to eat and call me a good thing it's a good idea. and going to feed the son took th

you are not getting paid for the beta, so to speak. i think that is a signal in and of itself.nathan: andy, pimco made it pretty clear we want to be liquidity providers, not liquidity demanders. when there is rallies like these, perhaps you want to be more defensive and step back. what is the approach at schroders? andy: i think we like investment grade a bit more. the difference from that interview on monday, the punch bowl has been returned pretty well since then. so i think that has changed the dynamic a little bit. kind of a mini cycle for investment grade. having backed up a little bit in the last month and a half or so. we like e.m., less so high-yield. i like the idea there is high-quality junk out there. jonathan: relatively speaking. jonathan: krishna, your thoughts? krishna: i emailed bob. i said, et tu, bob? jonathan: did you get a esponse? krishna: i did. it was a good one. it was good writing with him, but now he has gone a different way. our outlook is meaningfully different. we think there are five more years left in the expansion. as long as that is the case, th