that would spread throughout the financial system, given blackrock's size, we should point out blackrocke $4 trillion under management. pimco's a big company -- liz: market cap is 50 billion. >> it's a huge company, and it's a very good company so far. but this is what we have, we have a battle right now between the treasury. they put out a report that basically says these guys are dangerous, you know, we should regulate them like the banks versus the sec which is basically saying that is not the case. the securities and exchange commission which plays some role, obviously, in the patch work of financial regulation, all these agencies, the fed, the treasury, the securities and exchange commission, the sec is saying we shouldn't be worried about the blackrocks of the world too much, and that's where you have the battle both between the sec and the treasury. here's the one thing that i know, larry fink and asset managers are worried about the fact that we're actually talking about this. there is, right now, a debate in washington whether asset managers should be lumped in with the big bank

replacing charlie hallock who will be co-president of blackrock. fink and the current president will keep both of their roles. a spokes man says they have made it clear they will be at blackrock for years to come. >>> and sec capital begins its second life today as the embattled hedge fund is changing their name to point 72. a reference to the firm's street address in stanford, connecticut. the company will be smaller with 9 billion in assets managing solely the money founder steve cohen, family members and certain employees. in the firm's legal issues are far from over. later this week it will be sentenced for its guilty plea on securities fraud charges. >>> new york bank regulator ben laske is seeking documents from credit suisse looking into whether the bank lied about futures to u.s. customers. they have been probing the company since 2011. it is their 83rd prosecution agreement to drop an indictment in exchange for a big fine. "the new york times" is also pushing for a guilty plea from credit suisse subsidiary. this is expected to top the 780

ubs and blackrock oversee a combined $6.5 trillion in assets.t are their main concerns with the markets right now? >> the short-termism creeping into the whole world, the media, the corporate world, perhaps policy. we have been trying to engage the dialogue to try to focus on the much longer-term investment horizon, and not just share buybacks and paying dividends. actually do something productive with your earnings. productive for the economy and for the shareholders in a long-term sense. that is the emphasis we have taken the last couple of years. >> is this a concern of yours also? >> always a concern. are you a trader or an investor? we represent institutions that are investors. we are trying to think over years, over a business cycle at least. that probably drives how we look at things. >> christine michael also asks about tension with russia, and the solution to avoid negative economic repercussions. >> this is a difficult, complex problem that cannot be summarized in 30 seconds. both sides have, to some extent, legitimate grievances to ho

just a blackrock story. -- it is not just a blackrock story.pay price during the financial crisis and the whole system behaved like a bunch of traitors. the idea was that they own a company. we have seen them increase a tendency towards trading stocks rather than owning those stocks. that is probably for regulatory and other regions -- other reasons. the message we are trying to bring to our investors is focusing on the long-term and being owners. >> have you ever reconciled long-term growth and quarterly earnings? >> is difficult and it takes a strong ceo to resist the temptation to maximize quarterly earnings. make a that we can ceosibution to encourage to be courageous enough to try to do that, knowing that it is difficult. there is no panacea for this. we have a responsibility, as an this management, to drive message home. >> what can you tell us about the reshuffle of blackrock and the anticipation? >> i can be clear on this. i spent a lot of time on the road traveling. i have never seen an executive as committed, as intense, as larry. he

is aey rosenberg blackrock. he's in charge of explaining the future for the blackrock crew. .'uestion the dow up 21% a year. we're addicted to these great equity returns. that is not the real world. >> it is not. you look at the greatest equity return last year. 57%.s the nikkei up it comes from unprecedented outsized monetary policy. >> visit single digit expectation? >> absolutely. the net returns outside of these monetary experiments are pressed lower on what is the fundamental backdrop for returns, which is economic growth. in that environment, you have lower growth rates and lower returns from that. >> if i look at janet yellen's speech, must i assume i'm not going to make nine percent but seven percent? we migrate down to five percent annual returns? >> yes. you have the trajectory right in terms of lower lun returns. we are talking about nominal returns. the key in that speech was, what is the outlook for inflation? disinflation -- in europe, it's deflation. i did not hear of janet yellen begin to describe an idea of deflation. >> not an issue here. it is in europe. ,t b

blackrock with $4 trillion under management. just unbelievable. he's scheduled to report its first quarter financial results in a few weeks. i talked to people about the succession planning, and larry fink says he's not going anywhere any time fast. he's a young man. >> i cannot believe what they did with charlie hallac. >> they are probably saying, who is charlie hallac. >> you're right. >> i think everybody is in shock. honey, get in here. charlie hallac at blackstone is changing position. charlie hallac is changing position. >> this is a very big deal. >> hopefully they have a nielson box. >> this is a lot less fun than watching the changes at pimico, i'll say that. >> that was what i was saying. i thought we were going to hear -- that would complete the circle. >> yes. >> wow. >> wouldn't that be good? >> yes. >> then we would hear from him every time we had somebody from pimico on instead of hearing from him every time we had someone from blackrock on. he was a competitive guy. >> welcome to the new normal. >> well, you have to be able to gro

. >>> and blackrock is stacking up states at a record pace. are these unproven companies adding more risk to your mutual funds? we have all of that and more tonight on "nightly business report" for this monday, april 21st. >> good evening, everyone. we hope your holidays were good and good is the word for stocks today. the dow and nasdaq and s & p each ending higher for the second week in the row. it's the first time we've seen that this year. the blue stock volume with the year lightest and stocks did trade in the narrowest range of the year as well. the dow when all is said and done, up 40 points and s & p up 27. halliburton helped to push prices higher and profit reports lately have boosted stocks so far this earning season. but it's early. this week, about a third of the s & p 500 companies will report their latest quarterlies and dominic chu takes a look at what investors will be looking for. >> reporter: 11 companies will report earnings this week as well as 150 companies in the s&p 500. it's going to be the busiest week of earnings so f

but blackrock up against bill ackman. put blackrock up against carl icahn.te their size, they still seem fairly quiet. there is lots of back channeling going on. the average shareholder does not see that, does not hear that. that is what they want more of. hearinginterested in what your distinction is between a good activist shareholder versus someone that is disruptive and out to make a quick buck. >> that is a great question. i believe that all of the activists we have talked about, they all believe they are the great person, that they are doing it for the shareholders. >> carl icahn? >> is carl icahn a great person? i wanted to ruin your day here. >> he has made a lot of money. >> he has benefited other shareholders. >> periodically. >> ok. it is a big, big debate. frankly, that is the op-ed of the day. >> fewer americans are going to college. it is a lot harder to get into the most elite universities. stanford accepting 5% of applicants this year. harvard and yale accepting about 6%. rinsed in about seven percent. , about 7%.n the internet makes things e

beating consensus, blackrock compared to $4.11.r than expected, blackstone. steve schwartzman's firm, 70 cents per share. total of $814 million. that was the best first quarter for blackstone since it became a publicly traded company. so a lot of different numbers to choose from. pepsi earlier. lots and lots and lots. morgan stanley killed it. i'm surprised the markets are turned down. >> it was the strongest three-day run we have seen in quite some time. a lot of volatility. not just earnings driving things right now. you had comments by fed chair yellen. that's one of the reasons the major markets yesterday enjoyed a really strong rally. phil orlando, chief equity market strategist at federated. great to see you this morning. >> thanks for having me back. >> what do you think is driving the market? >> well, certainly the yellen lunch was a good lunch yesterday. i was there with 2,000 of my closest friends. i think she made two important points. number one, she didn't repeat the rookie mistake she made last month at her first pres

it is not a blackrock which is forging ahead with huge growth. backwater bond business. sickassume they have great -- great chicago cubs tickets. >> also, why would you buy a bond shot? >> bonds aren't going away. greg is going to very billion dollars. futures are flat. >> good morning everyone. you're on bloomberg television and radio. the to all of our digital product. bloomberg radio plus on the iphone. .loomberg tv plus i am tom keene, scarlet fu is doing her taxes in orange county. --istopher grisanti at one of only two u.s. banks unable to make the cut, by the way. bank analyst gerard cassidy of rbcs joining us on the phone. why is citi still struggling five years after crisis? >> what you have is a large, complex organization that is difficult to manage as easily as a regional bank. that is art of the challenge that this company has. last week that both jpmorgan and wells fargo have lower revenues. we are expecting today from city, revenues to be down 12%. is any reason to buy city at this point? a very we think it is attractive value play

blackrock or schwab or anybody goes to put an order in for a full new -- a few million shares .he hft's get taken out in advance stop they get to buy that ahead of that and flip it to them. liquidity.t creating they are just attacks on the transaction. trading in a zero-sum game. >> do you think the specialists are better? >> that is a whole different, -- conversation about specialists and the corrupt system there with -- and high-frequency .rading the specialists are obligated to make a market. we saw in may, 2010, we know that the option is just not playing as exists. the question is, i'm in computerized trading and allowing technology to narrows reds, and there are many technology. what i don't understand is how you allow an hft to sniff out an order from blackrock and just put a tax on it. there is a lot of crazy stuff in the book. when you pull that out, that tax complaint.et of his >> there are a lot of stories in the book about things like that. but if you know anything about high-frequency trading -- and by the way, i've never been involved with the firm that was not inv

recognize no shareholders -- i think blackrock said recently -- have a longer-term perspective. you can't do things for the short-term at the expense of what is for the good health strategically and financially for the company and the long-term. >> is it fair for blackrock to opine on what should be done? blackrock youths to have a call with any company they want and they get a call back -- >> it is fair for every shareholder from including a shareholder with two shares, to opine on what they think that company ought to do. it is also fair for the company for the paid stewards of shareholders to run the enterprise to do with a think is the right thing for the enterprise's health long-term. the main focus or debate really is around timing of certain things, generally, and how aggressive you are uncertain things. i would argue leverage as an example. we talk about leverage and buyback. the company that did a very large buyback in september 2008 -- in an example -- probably wasn't so happy to months later. you need to recognize whatever current state the environment looks like, it

things to jeff rosenberg of blackrock for wisdom on this. this is the volatility of the yield curve of bonds from two years out to 30 years. here is the quiet of last decade, and we're right back down there to the decade and a good feeling of where we were in 2006, 2007. a quiet, complacent market whether equities or bonds. day yesterdayic afternoon. here is our front page this morning with scarlet fu. >> nothing quite about apple's results yesterday. apple rewarding its shareholders , boosting share buyback by $30 billion, raising given by 8% and splitting its stock 7 from 1. >> where is the stock right now? 7%, but it is down 26% from a tie in 2012, so it has been a slow slog, and a lot of investors may have bowed out of it and look for growth. >> we will talk through this about all of "bloomberg surveillance," the blue-chip, this has been be fema for many theme on the -- been a for many guests on the show. you do that by actions, not words. >> tim cook proved that apple can still grow, so it is maturing but still growing. >> operationally

big firms such as blackrock and fidelity, t-p-g and janus-- have already closed 13 deals so far this year.that's up from 16 total in 2013. tpg just made vacation rental site air-b-n-b one of the world's most valuable startups, with 450 million dollars in funding. the site is now valued at 10 billion dollars, topping major hotel chains such as wyndham worldwide and hyatt. it's "game on" between google and apple to woo game developers. each company is fighting for each hot new game to arrive first on devices that run their repsective operating systems. the wall street journal says apple and google woo developers with promotional assistance and perks in exchange for exclusivity. neither company commented on the reported practice. workers at a chinese factory that produce shoes for nike and adidas strike for a seventh day. at issue are pay and benefits as well as workers' rights to elect union leaders. a chinese monitoring group says 10- thousand of the plant's 40- thousand workers have walked off the job. adidas and nike have both said they are encouraging dialogue between the workers a

still lag well behind fund giants like vanguard group with nearly $3 trillion under management and blackrock which reported $4 trillion last year. bertha koombs, "nightly business report". >>> google said it agreed to buy titan aerospace. that's where we gin tonight's market focus. internet search giant wants to use the high altitude solar-powered drones to collect images and get more of the world's population online. no word on how much google paid for titan. facebook did end up purchasing its own drone company so there it is called assenta. google shares rose 1.5% to $545.20. more on facebook. it's apparently no longer content with being just the largest social media site. it's preparing to provide online financial services starting in ireland. facebook just needs the approval of the irish regulatory board to offer users several types of financial transactions online. shares of facebook up slightly today. web md said it expects to report strong first quarter results at the end of the month. anticipates reaching the upper end of its annual earnings and revenue projection. the health informa

reached in geneva last week to de escalate the conflict meanwhile moscow's foreign minister sergei blackrock has warned russia will response or latent interest in ukraine are directly attacked. and turning out to the middle east the united nations secretary general on the moon has called on the security council to act in syria in order for my greater access to date for the war torn country. in its recent report to the council on said nearly three in a half million civilians were in need of final assistance including medicine and urgent medical care. the un sheep accuse all parties in the searing conflict of proto flagrant violations of international law. over one hundred fifty thousand people have died in series three year civil conflict. well millions have been displaced from their homes. and finally let's take a look at the global economy business activity in the eurozone is forecast to experience higher growth in the second quarter as they recorded in your three year high in april. german data for marquees purchasing managers compensate index also known as p in mind for the eurozone rose

the financial times says blackrock is planning for life after larry. full disclosure here. this is not about a change at the top. founder, the world's biggest money manager is reshuffling of it. they're expanding top leadership which will give 10 tier executives new roles. >> us us an important thing. caliberebrand shows the of who their hiring. ef two mentions and our finance team mentions, the backdrop is j.p. morgan and mr. cavanagh leading. blackrock is trying to get out in front. ,> you recall about a year ago polisario is running ibm said it is time to pave the way for the first new female ceo of ibm. >> let's look at the equity markets. the dow was up 12% in the past 12 months. always mindful, she has been a needed correction. .riday's job report our guest ptosis morning, a skeptic, has really been wonderful on the bull market. you are a different kind of bull, how are you different from the raging bulls that out there? >> i would say we are always a little bit on the cautious side. we focus a lot on sector strategy. as always, where the market goes >> critically,e.

institutional shareholders, like blackrock, for example, analysts like yourself, perhaps even the media see your self? have you always seen yourself that way? >> thank you for having this panel. thank attention to the comments from earlier, this is my day job. you call it activism, this is our responsibility as analyst investors. just because you have $100 billion in analyst funds, what about the $100 trillion in money under management? i got back from the annual meeting in st. louis yesterday. we have the annual meeting for suntrust. you know how many people asked questions? one person, my associate. >> why is that? people love to say that you are an antagonist. do you say that that is unfair? >> i am not crazy, the rest of the world is crazy. >> i tell myself that all the time. >> this is not the theory from harvard business school. we need to board -- we need to hold the boards more accountable. in nowhere else is that more important than the banking industry. before the crisis we said let's have the markets control themselves, but that does not work. we need to find a middle ground

blackrock spent hundreds of millions of dollars for the same purpose that everybody else did. were renters and everything else i'm a grown the market for a loop, bringing the mortgage applications down. these guys are cash buyers thanks to all the bailouts used to generate money on the other side of the house as collateral. neil: jonas, i know you are in miami. but certainly the lending his back, the building is back, real estate is back. maybe it's not. >> the lending has loosened up a lot. there's no condo hotel on the doubt. but i think that the consumer backs off when rates for loans go up and they just can't afford this. >> a lot of them are reporting that their interest did in getting a loan but the banks are not giving it a read. >> i think the lending is pretty loose. it's never going to go back to the ninja days or so that is not the benchmark for how lending is supposed to be. but today it's pretty available if you have any down payment or if you have equity in your house and if you have income. it's not what it was in 2005. but i think the rates are low and you can

the group of institutional investors includes companies affiliated with blackrock and goldman sachs. the eyethouis table tennis. e sticks tod ford sleep or dissipating in the qualifying tournament which took place in thailand cause extent is the only asian country has been located for licenses. yulia health by beatings in the final drive defeating the rival from malaysia with the score forty zero after a short break dasle will begin preparations for the youth olympic games which will be held this summer in nanjing china. no bed and table tennis junior selection is tougher then for a goal of the big selections on the thirty two athletes will dissipate in it. she missed the last hunting season in places an pple tennis takes china japan korea and hong kong. i would try to add to the top twenty best athletes racing. but since most of the destination since in the extreme marathon in morocco will be finished to produce good work in the penultimate the most difficult stage and he went to meet a wedding some rock outcrop from jordan won a bigger at this stage is time to finish was seven hour

in companies, blackrock shakes things up. what does that mean for ceo larry frank? the latest shot in the battle for content. we will tell you. the republican party plays catch-up in the race for data. we are going for a boatride. we take you a board mastercraft. captain america is only the latest studio superhero.

some big selling names like via biogen.ike blackrockers, strategists, he also weighed in on the i/o techoverall, the market looks overvalued. those were very stretched. if what we're seeing here is a modest correction and that a company into more value-oriented, that is probably healthy. >> weighing in on the selloff in sector.ech let's take a look at what is happening with oil. to aboutsing today up a five-week high, 2.5%. oil isd between changing. that is it for on the markets. ♪

blackrock's chief investment strategist is with us. what are investors thinking?> there are a couple of things going on. veryof these sectors got aggressive valuations. you look at biotech for example. nearly eight times book value as recently as the end of march, so clearly, you know, stretch valuations have played a part. i think what is exacerbating this anchor to reading -- and contributed to the seat is we're seeing a lot of liquidation by hedge funds. they have done really well with a, but at that moment them has broken down, we are seeing some aggressive liquidation by many of those players. >> what are those players doing now and what are they buying into? been a lotthere have of movement into cash, but you are also seeing something below the surface. take a look at technology. we have all spun this as technology selling off. if you look at effects on monday, at the same time as many of the highfliers, some of these use the term now old technology companies, intel, cisco are actually up. what you are seeing is a rotation out of the very aggressive growth n

or blackrock? as the big guy, you often have an advantage.nvestors,case, money managers like that, are being victimized. i think they are partly to blame in this sense. take a commercial. we will be back with more. ♪ >> welcome back, everyone. you are watching a special " withn of "market makers michael lewis, talking about his latest book "flash boys" and the controversy it has brought us. >> i was cut off, but the issue is who has the edge, who gets to exploit it? the drivers behind it do not like what is going on at hft because they are not the ones who are winning. >> i will finish the thought we were on. it is surprising that investors have not organized and sells more forcefully to take control of the stock market orders. it is a bit of a puzzle. i think it is just that , they are spread out across the country, not in the same place, not organized the way that wall street firms are. you could accuse investors -- you were saying, aren't investors to blame, why are they victims? people who manage other people's money are not as well organ

. >> it any of your other large shareholders, blackrock for example, wellington, t rowe, you would giveit to them? >> absolutely. if they want confidential information and abide by the restrictions that come with that, then we would be happy to provide it. in this class -- in this case, that is what he wanted to do. >> you know that many see carl icahn as a bully. to those folks that still feel that way, explain to them the value of letting the fox in the hen house. >> i do not think it is a fox in the penthouse. from the beginning i've had direct conversations with carl. in all those conversations he's been respectful and thoughtful in our one-on-one conversations. >> but nasty and accusatory in public? i have not negotiated with carl icahn, so i do not know if that is the way he rolls. >> all i know is in my direct conversation he's been thoughtful. what has happened in this case, and jimmy lee, the vice chairman of j.p. morgan, all the last week. he was meeting with carl on another topic. he said, i think you and carl should spend some time together. we did over the weekend and we ta

we had a chief investment officer from blackrock.stors with horizon, he is hedging a bit. we suggest emerging markets for a combination of value and growth. they are cheap and they're going faster. that is why you go to growing markets. you may also want to add another layer in dividends. emerging-market stocks that pay dividends. or emerging-market companies that pay dividends. this is what he likes, ethnic fable. dvye. vy, which is know dbvy dividends. dvye is the same thing. it is diversified across the whole world. there's that upswing he is talking about. emerging markets are reemerging. >> that is adam johnson with opportunities in the emerging markets. on also take a quick check what is going on and commodities. amid escalating violence in eastern europe, currencies are putting the dollar higher as investors seek out a safe haven. the dollar is stronger. the euro is weakening after comments from mario draghi saying that if it does appreciate further, they will merit stimulus. the euro is a bit weaker against the dollar. gold f

he is head of america's credit at blackrock. good to see you.ee a lot to like in high yield bonds and loans. why has fixed income been good? >> to separate high yields and loans, since the financial crisis, you have seen a tremendous amount of liquidity being pumped into the system from fiscal banks and governments. risk has declined dramatically. you still have good return. today's expense will be different. there's is still good opportunity to invest and own yielding assets and income, but it is not going to be the same return you saw the last couple of years. >> and a lot of talk on wall street is centering on when the fed might raise interest rates. bonds and loans, do they offer enough insulation from raising rates? >> i think right now, they do. the difference today is the last has years, corporate credit been playing it safe. balance sheets look good. the economy is improving. that is why you expect the fed to increase rates. loans are more insulated and protected through the shape of the curve. high-yield bonds tend to be around four or

we get results from blackrock, due upon the, ge, goldman sachs, morgan stanley, pepsico, union pacific, unitedhealth, blackstone, chipotle and amd. still to come, we speak to the sodexo ceo, michel landel. ♪ [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good. over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach our kids that trick? [ male announcer ] by not acting that way. ok, last quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ >>> you're watching "worldwide exchange." >>> a recap of the headlines today, vladimir putin denies the presence of russian troops in eastern ukraine. >>> google and ibm both disappoint with first quarter sales. that sent shares lower in after hours. >>> and weibo prices its ipo at the low end of the expected range and cuts the size of its u.s. software. >>> sodexo, first quarter operating profit rose by 11%, keeping the firm on track to hit full-year targets. shares also

and everything, but i came across a letter that larry fink, the sheet executive and chairman of blackrockone of the biggest fund manager and the world, he sent this to ceo's last month. in it he says it concerns us in the wake of the financial crisis that many companies have shied away from investing in the future growth of their companies. too many companies have put capital expenditure and cut capital expenditure and also increased the debt to boost dividends. he's advising them to look to the long-term. that is what he wants to see is a fund manager. >> yankee so much. our -- thank you so mcuh. uch. we were talking about the topics you like. is there an opportunity for investors to pick an m&a stock? or that too risky? >> it is a bit risky. you want to invest in a company that has strong underlying fundamentals, strong valuation upside. not just buying a car because you think it might be taking over. those kinds of companies have a premium already. it is risky doing that. m&a has turned to pick up in europe for the first time in a while. >> it looks like it is a sign that growth is her

a couple of individual movers -- the solar company backed by blackrock is dropping its solar power projectdia and those shares are down nine percent. it was canceled due to local equipment shortages and high prices. we will be "on the markets" again in 30 minutes. ♪ >> you are watching "bloomberg west." let's get to our lead story of the day -- tech companies and the fight for original content. we took you inside the microsoft santa monica studio earlier. jon erlichman is back with more from l.a. and a special interview. arrived atcy tellem microsoft, the tv team consisted of one, her. now you have people in a bunch of different offices and headquarters in redmond, washington and vancouver and london but the key team focusing on the hollywood story is in the santa monica office. i asked her about how broad the different tv originals xbox will be focusing on? >> we are dealing with serious, we are dealing with limited series or what i used to call many serious, feature-length projects, have our projects, short form projects, animation, live events, sports, news -- we cross all jobless. --ge

a top fund manager at blackrock says maybe your best bet is the unsexy names. movie blues, netflix, hot earnings report tonight, should you be betting on the stock after a 20% drop. stealth winner and energy games. hi. i'm scoin for scott sullivan to. we have jimjim. good to see you. let us get straight to the market. stocks are up. not a lot but they are up. in fact, the s&p 500, if it finishes higher today will have its first five day winning streak in 2014. we are already on the longest winning streak since october. a big parade of earnings coming out this week. will that keep this mini rally going? how are we trading it. so many questions. thankfully you have answers. are you surprised by the strength? everyone seems to be waiting for this big drop and here we are on a five-day winning streak. >> a wall of investors we like. only a small percentage have reported so far. we get 35% of s&p companies this week. what we normally do in the portfolio is raise cash ahead of earnings so we can buy the exaggerations. thursday, we saw google fall and bought more goog

. >>> and blackrock is

at the end of this $5.4 billion deal, blackrock lost just over $100 million.ver, the california public engine fund lost 500 million dollars. the california teachers retirement fund lost $100 million. hawkes because gecko -- >> because? >> because they had invested. if their private equity firm loses, they don't lose much money. if they win, they win an incredible amount of money. it is an example of the perverse incentives where private equity firms, big bangs are able to eliminate risk for themselves through these complex financial products, to be securities, but meanwhile, our own lives and communities are getting significantly less secure. turning a profit for these equity companies? buy up could rent-regulated buildings and forced the tenants to leave. by forcing them out, based on new york city tenant law, these owners now have the opportunity to raise the range romantically. the tenant laws in new york city is if you have been living in an apartment for a long time, there's a cap the amount can go up each year. as a long-term tenant leaves, then you can

rowe price, legg mason, blackrock, that's i-shares, so that's probably the number one asset manager in the united states followed by vanguard. there's janus capital. >>> private equity not quite the same thing, but most of those, with the exception of icon, also moving to the up side. long-term money, that 1% every year from the asset managers, it adds up over time. increase the assets under management. that's the game. >> thank you, bob. we're up 147 points on the dow at the moment. let's get a market flash. >> check on the life sciences, the number one gainer. this after it won a preliminary injunction limiting the sale of rival med tronnics core valve system. a jury found it infringed on edwards patents. as for medtronics, you see that it one product in fringes, back over to you. fears of a market correction, they were all the talk last week. gentlemen, welcome. we could be ripe for a 5% to 10% correction, maybe over the next couple weeks. you're not ready to buy. talk to me a bit about that and why you would buy financial technologies and industrials when the moment is right? >> fi

david is a four-star fund manager at blackrock and joins us live from princeton.hanks for coming on. >> thanks, scott. >> these gains have been remarkable really considering what many people may have thought was going to happen here. does it continue? >> yes, we do think it continues. starting a month ago you started to see the air come of the of the bubble of some of these new tech names. it's a familiar story. back in the late '90s part of my job was to look at the tech ipos and a lot of the same red flags now that we saw back then. the volume of ipos the valuation metrics we're putting on these companies. when you get to the point where you have to make up new valuation metrics because they don't have revenue or earnings to put the old valuation metrics on is usually a sign of trouble. we think it's early on in the process and that money is going to flow from new tech to old tech. >> are you suggesting there's a bubble in new tech names? >> i think there is. again, those red flags we saw back in the late '90s you see now. it's not as wide spread as back then. b

jeffrey rosenberg from blackrock about equities and bonds. what do you do when it is quiet?g weis have been exploring. we have huge pharmaceutical deals in europe so it's a little less quiet. you have to ask yourself whether the quietness is justified. blinkersrkets are in where they don't talk about russia and ukraine because they are focusing on central banks, two weeks down the line we might be in trouble. >> we will look at the pharmaceutical deals. a lot of transactions going on within the quiet. it is all linked back to the central banks. some seems to be the idea of very cheap money. explain the novartis deal. in threellion expected deals. they are streamlining and going after what they said they want to go after, which is growth -- oncology, for example. immuno oncology. what could beat cancer. and "the wall street journal" talking about the ottoman -- talking about bill ackman. he is going after something you know nothing about, francine -- botox. >> botox really works for me. >> nothing like a compliment on a tuesday morning. tom keene with the latest on botox. >>

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