jeff rosenberg of blackrock.nvestors position ahead of the fact that there is an inevitable rate hike? >> this is going to play out different than what happened last year. you talked about the end of qualitative easing, that was last year story. quantitative easing was about restraining long-term interest rates. that is what affects housing. this year and going forward, we are talking about the change in interest rates for short maturities. that is what the ending of zero interest rate policy is about. where investors hold their maturity what is the perspective of their investments, becomes more important. investors are concerned about a replay of last year. it is going to be shorter term interest rates that rise when the fed exits zero interest rates. >> so we are still safe and a five year to 10 year time frame but not shorter? the bigger increases in interest rates are going to happen and shorter maturity instruments. that is the opposite of what a lot of investors have been doing. they have been fleeing longe

blackrock is a great bond firm too.have $1.3 trillion in fixed income in beta and alpha products. we had extraordinary good performance now for five years, and we're winning market share and, you know, we've been winning market share for over a year and a half now, and that's accelerating new into the fourth quarter, and whatever happens, i think you'll see a lot of money moving around, and this is going to be a one to two year process, and if the leadership continues to do the right thing, and i think they have done a great job in stabilizing itself, look, the outflows are minimized if performance continues to have challenges, they will be outflows. but this is -- we're creating way too much drama. ere's great movements of money between firms all the time. the greatest beneficiary because of the performance in 2008. firms like blackrock and other firms were net losers in fixed income in 2009 and 2010 because of that. the ecosystem moves around. i know it's fun chatter. right now, we're a beneficiary. i hope we'll be a

is responsible for, and when the man who runs blackrock speaks, you should listen. this week it's chairman and ceo larry fink says there is a big crisis coming and it's one that not enough people are think being. >> to build the proper savings for retirement requires a process of saving continuously through life. the later he begun saving for retirement, the more difficult you're going to have that pool of money you want to live in your retirement in dignity. too many americans are too dependent on just social security. the social security program was supposed to be a backdrop to all the other private savings you have, and one of the reasons why i don't believe it's a crisis that's in the news today, our federal workers don't have this problem. they have a great retirement plan, and this is why we have to be noisier in the private sector. the other aggravating circumstances to this problem is, fortunately we're living longer. it is a blessing. americans are going to live between 78 for a male and 80 for a female. >> it used to be the corporate sector, the private se

blackrock has $89 billion in invest across that region -- in investments across that region. when we continue, we will take a look at whether the fed might expanded tapering program as inflation continues to fall short of its target. ♪ >> the european central bank bought $2.2 billion of covered annds last week in and sn - effort to stave off inflation. welcome to bottom line. thank you for your time. andral banks from the u.s. japan, they use quantitative easing to expand their balance sheets and encourage lending. the european central bank did not until last week when it settled over $2 billion worth of covered bonds are just is. -- covered bond purchases. is this going to create enough stimulus to give the eurozone economy some momentum going forward? >> i think it is a good start. a number ofre are questions that the ecb is going to have to grapple with as to whether or not some of the existing programs are going to be successful. including covered bonds, but asset-backed securities, and the tro facility , they are all on the table as stimulater the ecb to activity in the

ross is from blackrock.think asset backed securities purchase of those and covered bonds is enough for europe? >> well, it's going to be a challenge. the objective of getting their balance sheets up to neutral with the added complication they're going to see about 400 billion of repayment from ltros. that means about 1.5 trillion euros they'll need over the next several years. >> stay with us. we'll move on to earnings now. yum brands is cutting its full year profit outlook after third quarter same-store sales in china fell 14% amid the food safety scare. however, same-store sales outside of china rose in q3. yum rose 1% in after hours in frankfurt today. we're looking at the u.s. dollar index. we'll bring you up to date on that later. >>> now, earnings season in the u.s. kicks off this week for the s&p 500. analysts forecasting a 6.4% jump in profitability and a near 4% rise in sales. we heard from coastco this morning reporting a 30% jump in profits beating estimates. we'll keen an eye on monsanto. it did

stay with first up. >> blackrock kicks off right here -- blackrock's symposium kicks off here today.et a taste of what to expect asia-pacific of joining us exclusively this morning. many thanks for coming in during quite tense times. let's talk about the symposium. what do you expect from it? we have over 200 of our clients coming in to speak with our investors. experts to talk about trends, themes, what we are seeing and what our clients are supposed to be doing with their money. ask you about the shift from being in the states to hear. questions are people asking that are different and are you surprised by the questions? >> there are similarities and differences. the similarities aren't surprising. the questions of the quest for yield and return his insatiable as it is here in new york or london. -- here, in new york, or london. sometimes investment solution tends to be an overused term. why is there no longer comparing the product to customer -- to a competitor's? things those types of are -- we have the ability to bring all our resources to the firm to discuss allocation. whether

alex, you don't work for black bar -- for blackrock, but you do speak portuguese.mong wins,ors that if this everything will be magical and everything will take off. is that valid? >> first off, he's not going to win. the advantages of being an incumbent are numerous. look-alike -- the lula like team. than been less lula like we would expect. but there is an overly negative assumption about how things will .lay out either way, whoever wins will have a very weak mandate and not be able to move on some of these big structural reform issues that brazil needs to get back on track, growth wise. what -- >> if oil prices stay where they are, that will be one of brazil's biggest issues to overcome, no matter who is in office. >> i will point out we seen a massive depreciation in brazil going back to 2011. does i continue with this brazilian victory? wins,ecess -- rousseff you will see a run in the days after that. but it remains to be seen how that will work going forward. but there is this wide range of expectations that are overly negative an overly positive with the two

you'll hear from blackrock's president rob kapito. which is a better bet, stocks or fixed income? bonds and stocks, we have two people who will make the case for fixed income. we'll have a top pick. $5 trillion, folks, that's a trillion dollars every 12 minutes. 100 million about every minute. don't miss even a second of this show tonight. sue, down to you. >> sue is not there. i'll pick it up here. big market sell-off following yesterday's huge rally but one of the bright spots today as hand apple. it is up on the icahn letter, carl icahn explained his move just minutes ago to our scott wapner, right here on our network. listen in. >> every time they sell a phone, scott, they have another annuity. they have another flow that they guarantee. people don't get rid of these phones. i think this is not realized and as a result we are writing this letter. >> let's hear from an apple shareholder, michael farr from washington. welcome. you're actually here with us today. what do you think of apple? what do you think of icahn's exhortations to buy back more stock. >> i think apple is fair

now -- thatt that blackrock has a return fund. fund hasn't return just outperformed this year or one year but three years over five. here you are versus another guy with a total return fund and pimco's return fund. what kind of response has billrock had since announced his departure to janice just a week ago? >> we do not talk about daily flows and what we see day and and day out. i run thisand together and he has some pretty incredible calls. we have been very happy with what -- with how flows have been. it would be surprising if low stay consistent. said no biggie, who cares. >> it is a great firm and pimco's going to run a lot of assets going forward. you think how big the fixed income market is, it is $38 trillion. people focus on what is going to happen coming out. fixed income markets are not going to go away. is whatring assets pimco does for a living, what blackrock does for a living, what you do for a living. has there ever been an opportunity like this to grow assets in this asset class that exists right now? >> fixed in

blackrock in the process of the new managers. kansas city and san francisco, it comes down to game seven. the royals scored seven runs and eight hits in the second inning. crushed the giants. the series all tied at three games each. it makes for an exciting game seven tonight. >> tomorrow night. >> tomorrow gekko ok. there is our baseball coverage for game seven. it is a commendation of liquid fuel to make kerosene, and solid fuel on the rocket. i feel days -- like the old days, the first age, the new days in the second stage. you wonder what went wrong. it takes me back to tighten -- the shock we60, could not put a rocket in the air like the russians. "bloomberge is cold warnce" chief fo correspondent. bloomberg's international respondent hunt stickles is in berlin. there is a new cfo. will it save deutsche bank? that is a question for tom and the cold war rocket man theatrics. basically did something i will position to cover, having covered the white house, and that is they got a lot of bad news when no one was looking. on sund

like the blackrock senior portfolio manager joining me, talking about brazil. thank you.till ahead, we will go on the markets and get you the very latest on trading. julie hyman is standing by with those details. ♪ > >> tonight on our new bloomberg politics broadcast "with all due respect," josh earnest, the white house. that is tonight at 5:00 and 8:00 em new york time. check out the new bloomberg on six site with even more content, new articles, and new videos every day. bloombergpolitics.com. 5:00ng stock" is now at p.m. new york time. we're coming up on 26 minutes past the hour. that means bloomberg television is "on the markets." julie hyman is standing by. a down day. >> indeed, and that is after the imf cut global growth forecast. came inal production below what was estimated in germany which has been one of the growth engines in europe. so the idea it is slowing down is baking investors. if you look at the major averages, we are seeing declines across the board. they have been pretty steady throughout the day with industrials and health care helping lead some of t

>> i think at blackrock, it's about fink., investors look for performance and they look for the right outcome. i think what we've seen is the outcomes. how does that feet with what their moves on? so we're seeing, for example, much more blending. you wouldn't have seen it a couple of years ago. those trends, the fixed income which for us is a big shift. we think about the big changes. ultimately, that's going to change fixed income investing. it's very much on thinking about what are the funds, what are the products that investors need to build these outcomes together. >> if there is more unconstra unconstrained particularly on treasury markets, what does that mean, does it mean it could be a lot more volatile? >> potentially. what unconstrained investing does is it gives you more bandwidth as a fund manager. if you think about fixed income, just focus on fixed income for a second, it's very, very benchmark heavy. in certain environments, much of the last 20, 30 years, that has been the right fall. that's not necessarily the

when the man who runs blackrock speaks, you should listen. coming and it's one that not enough people are thinking about. >> to build a proper savings for retirement requires a process of saving continuously through life. the later you begin saving for retirement, the more difficult you're going to have that pool of money that you want to live a retirement in dignity. too many americans are too dependent on just social security. the social security program was supposed to be a backdrop to all the other private savings you have. and one of the reasons why i don't believe it's a crisis that's in the news today are federal workers don't have this problem. they have a great retirement plan, and this is why we have to be noisier on the private sector. the other acircumstances is we are living longer. >> it used to be the corporate sector, the private sector, would almost provide a very paternalistic sort of situation where they were providing pensions for people. now it has switched to a defined 401k structure. what happened? are corporations to b

she will be interviewing blackro blackrock's chairman and ceo larry fink.e's going to be discussing his company's latest results. plus, give us his take on the markets, the fed, the economy and geopolitics and much, much more. if there's one guy out there these days that you want to hear from auto on a day like today, it is mr. fink. >> in the meantime were going to get to markets. not a great way to wake up this morning. a second health care worker now in texas has tested positive for

blackrock reported numbers. they were outstanding.emember, blackrock owns i-shares, the biggs etf company out there. 30% of their business in europe, by the way. they had great numbers overall here. we saw i-shares continuing to grow its part of the business. overall, 7% growth in it the i-shares etf business. i know it's a rough day for the markets. people who own those etfs still doing very well. guys, back to you. >> all right, bob. thank you for that. the ten-year now at 1.91. let's get to the bond pits and check in with rick santelli. >> i'll tell you what, carl, what never happens down here, the east board and north board on yields are different. why? because they're moving like wildfire. you know, i never use the capitulation word. one, because it's hard to say on live tv. two, we see it so rarely. but this is starting to fit the bill. just consider this as you look at the charts, which have already changed on comps. ten minutes ago the two-year was comping at november of 2013. it was at 35 before retail sales. it's trading 26

. >> from the air the lava appeared to have hardened into blackrock but photos taken by the u.s. geological survey revealed a river of super heated lava continues to blow beneath the solid shell. >> so even if you were able to figure out how to divert the material, it would create a new pathway. there should. be any casualties. it's beautiful to watch. >>> now, hundreds of people in southeast ohio are under evacuation order this morning following an accident at an industrial site. the head of a national gas well was shirred off at a facility in jefferson county. a crew from texas is on the way to cap off the well. >>> and the white house says it's dealing with a cyber attack. a new security measure -- the new security measures have led to some outages and loss of availability for some white house employees. the white house is not commenting on a "washington post" report that the russians are behind the security breach. >>> and this morning there is increased security at u.s. government buildings. the ramped up security measures come following recent attacks in canada and continui

you have got blackrock saying the fed will hike rates sooner than you may think. >> what is sooner?ise point it? >> the question is when next year. it is ansys is they will hike rates at some next year. early would be the first quarter and late will be the fourth quarter. the pace of how quickly they hike rates is key going forward. a quick pace of rate -- rate -- s fundamentally, the fed is looking at data right now to see economic data to see how they and keep thes economy while not cooling it too much. you also have a dynamic where the potential for a rate hike has also caused the dollar to increase in value, which could stymie growth in the u.s. which could prolong the use of zero interest rates policies. these things are causing a little more volatility and more disagreement among the guests investors. >> on the question of the fed and talking to various investors on how much are they paying attention to the fed right now in calculus investing versus geopolitical events versus the dollar? it was a fascinating reaction to the jobs report on friday where we reverted back to where

what if you had blackrock style capital under management and a lot of latitude, what would you do? think the biggest opportunities right now are the hedge fund favor stocks -- favored stocks that have come withoutjust a few weeks a big change in fundamentals. >> like what? >> american airlines is a perfect example. the stock has fallen from 43 dollars to $28. art of that is on fears of ebola. -- part of that is on fears of ebola. but also because oil has fallen and it's their biggest cost. the stock is down materially, and you know why. because the stock was a hedge fund hotel. >> derailment, we thank all of you for joining us. shahraab him on --ahman, jeffrey katzenberg right here in new york city, and jerry cudzil. >> what a treat. alumni -- two are anotherlumni and basically my first client. coming up, we have not seen low prices like this in two years. we will find out why. ♪ >> coming up, a cosmic comeback. the biggest hotel that went from bust to boom, or they want us to think that. and it's not counting on gamblers to be different. plus, you don't need a fancy kitchen to be

blackrock's cio and we welcome back former fed governor mark olson. good to see you both. governor olson, you have been in this these meetings. doesn't it feel like it's counter dependent? said it's over by end of october and they were going to finish come hell or high water? >> yeah, bill. i think that's right. i think they had set a definite calendar and they met it and important to remember that what is ended is the increases in qe and the determination that they're going to leave all of that -- everything that they did with qe stays on the balance sheet now for yet to be determined period of time. >> right. >> so, rick, does this mean interest rates are going to start going up or does it mean like we have seen at the end of some quantitative easing programs they might be under pressure? >> we think what the markets are doing right now is where we think they should go. the curve should flatten. the front end of the yield curve is wrong and distorted by easy policy. that is now evolving. when you look at long rates actually improving today, we don't think that's unreason

let's bring in russ koesterich with blackrock. where do we go from here?k in the near-term, we have more volatility. the market is responding the to a couple of things. they're responding to clear evidence of slower growth, and they're responding to the fact that we're starting to exit this period of extraordinary monetary policy, at least in the u.s. that is having the predictable effect of pushing volatility back towards its long-term average. >> i mean, what people could really try to do with this is a context of where you think we're going to go. if people are sitting on the sidelines at home and thinking, at what point do i pull the trigger and buy? what would you say? are we going to go through a major re-rating, further, of energy, for example? >> well, energy, i think, is already re-rated. if you look at the energy sector, it's already down close to 20%. so while the broader market is only down 6, 7%, there are segments of it, energy, small-cap emerging markets, that are already clearly in correction territory. so i think the answer to your questio

you run fixed income over at blackrock. has the fed overstepped its bounds?tive easing and aggressive policy is appropriate and has been quite appropriate for a long period of time. we can start to evolve from the conversation we had earlier. we can start to move because we are not an unusual times. tsagree with the commen that this is dull, but the distortions are real. you can create a cost that outweigh the benefits. haassassador richard wants a stronger defensive economy. could you please explain? they raise rates once. what would be the damage? ambassador? >> there are a growing number of people worried that we are storing up in inflation problem down the road. this reluctance for the fed to begin to move. >> martin feldstein may be right or wrong. i am lost about what the worst case is. >> there is one critical dynamic. the economy pivots off of long-term interest rates. we used to pivot off the front end of the yield curve. >> this is critical. how far up the curve do you go to where the effect is? >> certainly outside of five years. 7-15 years. you th

, % a big beat here for blackrock, the world's biggest asset manager.n you look at earnings results, what we be hearing, listening for from the companies on the conference call as the markets in the macro environment look drastically different than they did in the third quarter? >> you don't get that much forward-looking guidance. you need to look at macro conditions. you need to look at what will be the drivers of future earnings and often you will not get that in the earnings results, but if the company can earn a lot of money right now, then you have to sort of challenge yourself and say why is that going to immediately change? when you look at the oil market, the future's significant drag on oil revenue and profits in a benefit for someone else. >> we thrilled to have lisa abramowicz with us as well from our bond team a bloomberg goes fromyone bond analysis to my prices down, my prices up, what is the swap factor in the bond market? some of these are down 2%, down 3%, they have rolled over a little bit. what is the swap factor right now? >> the big

thank you to the emerging markets change at blackrock for this chart. bars left. 76% in the past decade. 22% of risk. people like cfa-level three exam -- people flunk cfa level three exams. do you have this or do you go to church and pray? >> we would argue to avoid it altogether. you will struggle from both currency risk and the fact that it is still in a period of underperformance. from 2003 2 2700 he forgot about currency risk. now that the fed is less lose and maintain you may see the opposite effect. >> do you agree that strategies to limit the risk usually don't pay off? >> over 10 to 20 years, that is correct. >> level four. >> over a very long period of time those currency fluctuations smooth out. >> it also keeps wall street employed. >> job creation. --inking is a cash keynesian keynesianism. >> do we see the dollar strengthening as it takes over as a trend? >> oftentimes they are forced by technicals. emerging market growth has been disappointing. quick start -- we expect the convergence will continue to the downside. far stronger on a relati

on wednesday, we hear from blackrock as well as ebay and netflix.hursday, goldman sachs and google are set to steal the show. >> christine, thanks for joining us. ahead of a slew of earnings reports, that will give us a better indication of how some of these companies are faring on the back of better than expected economic data out of the u.s. but a lot of concern about the resilience in the greenback. the u.s. dollar, how big of a concern or headwind do you recognize the u.s. dollar being on earnings this season? >> you know, we don't think it's going to have that great of an impact in the third quarter. perhaps in the fourth quarter, we'll see more of that shake out. although the dollar has appreciated really since the spring, a lot of the appreciation has only been in, really, the last month of the third quarter. so we wouldn't expect to see too much of a negative impact in this current earnings season. i'm sooul sure he'll see mention of it. i expect to see many companies use it as an excuse this quar r quarter. i wouldn't expect to see it shake

. >> your story on bloomberg.com, you spoke to somebody a blackrock you said get used to this. >> people are saying, look, the fed is normalizing. they are backing away or preparing to anyway -- they are slowing their bond purchases. expect volatility going forward. and is what it used to be there are still a lot of people who are positioned in the same one-way that -- one-way bet. as shortiskier assets on rates. >> is this what people can expect from now till the end of the year? i think that the question is will there be some kind of more clear directionality with economic data coming out of the u.s., either being more consistently positive or some titlist setting people back to safe haven assets. >> europe's economic news has not been good. >> absolutely. the question is how much will that actually trickle into the u.s. economy? concerned withy oil prices declining that it would really affect the u.s. economy because of the increase in oil and energy companies. what the question then -- role, if any, do banks have with this? can you attribute some of this to what the banks are doing?

the fed would normally be tapping the brakes right now and blackrock says it will be happening soonery think. we will get some clues to fed think this week when they released their note and there are speeches by 12 of the 17 members of the open market committee. hopefully we can get clarity by the end of the week. you.ank pop culture, politics and tv -- that is what you can expect on bloomberg voss new broadcast "with all due respect." it makes its debut at 5:00 p.m. today. the hosts join me now for a preview. it's a very busy day for you too. -- didn't puntrt today on gay marriage or did the justices just call a timeout? >> i often object to sports metaphors, but punt is the right thing. even veteran court watchers are surprised by this. i think what happened is you had justice and the four liberal judges being happy with the direction the state courts and federal courts below them are going on gay marriage. they did not want to break in. it's possible justice roberts agreed with them. let's not have the supreme court put its thumb on the scale and let the continued flow go the one d

>> i can't understand how tony james over at blackrock, blackstone -- melissa: paul jones. >> all these limousine liberals, actually like this guy after he basically, basically cast such aspersions and turned world against them. melissa: he flew in a convoy of helicopters from being with billionaire george soros and billionaire paul tudor jones, he landed at the greenwich polo club with his helicopter. so he could attend -- >> this is politics. everyone knows growing inequality is a huge problem in america and obama trying to address that problem. but i agree he should -- >> what do you mean? melissa: trying to address the problem by taking money with billionaires? >> think about what he is doing so bad. out there in very difficult economic climate, saying almost a crime being successful. these guys, you know, i like bob a lot. i almost used the word i didn't want to use with him. but these guys actually let him get away with it. >> i know bob. he is a great guy. we coached little league together back in the day. i'm in greenwich. those polo fields are north of me. melissa: what are you

the business, though is capital light and we run a very efficient business and margins that rival blackrocknd we have a fraction of their assets. >> do you talk to people about getting taken over? >> not we, in. >> do you get approached? >> we don't talk about rumors but you're seeing some activity in etfs. janus -- >> $20 million. >> i don't know if this's the full terms. >> okay. >> it was acquired by blackrock and got into the business and not enough sponsors to satisfy the demand of the traditional firms. >> is the etf business like hollywood where you have to have the hit products and franchises and if you don't have a dxj in a given year, is that tougher? >> different because they have a recuring theme so, you know, domestical large cap dividends, a little bit, lasts forever. the s&p 500, 50 years old, doesn't go out of favor so it's more like something with a lot of sequels. >> the dollar bullish done very well for you. >> yes, absolutely. that's been a real strong recently launched fund so the dollar's been really driving a lot of money. >> do you think that etfs themselves still ha

become unliveable and abandoned just as others have when kilauea turned their lives to desert of blackrockare up slopes or tributaries that could threaten more homes. we'll see if the berms work later today, jon. they're trying to pour water to cool it down to stop it from encroaching the homes. from 2,000 degrees, it pretty much vaporizes the water almost immediately. back to you. jon: not anything you can do to stop something that hot it seems. >> reporter: you're right. jon: william la jeunesse. tell us how it goes. thanks. shannon: a new delay in the colorado movie massacre trial. why it is on hold for the fifth time. >>> amazing recovery of a young nurse infected with ebola gets ready to leave the hospital. what doctors are learning from her treatment. plus what do the feds need to do to protect americans from a deadly disease. it is all next. a party? hi. i'm new ensure active clear protein drink. clear huh? my nutritional standards are high. i'm not juice or fancy water. i've got 8 grams of protein. twist my lid! that's three times more than me. 17 vitamins and minerals. and zero fa

lava spills a million feet of new lava upstream potentially, definitely creating a new desert of blackrockn the big island. >> on mana loa, there was period where lava lasted for five centuries. if you look at the geologic record, for example, it could last another 30 years. >> reporter: for perspective, kilauea did this in 1986, almost swallowing an entire town. eight feet high, the lava burned through homes. it overtook roads and it forced most to evacuate unable to grow vegetation or build landscape as uninhabitable. today's flow could force a similar fate on residents in pohoa. >> it is a little quiet village and very rural community. many people, they farm, we fish, hunt. and if we're going to be an island on an island. people meant to stay will stay and people that have to leave, sadly will leave. >> reporter: bottom line, it's watch and wait. realistically there is such a volume of new lava feeding upstream the outlook is not good. the leading edge is only 15 feet wide but it is wide as a football field, moving like a slow unstoppable tidal wave towards town. as you said the nationa

. >> vanguard, blackrock, light years ahead of them. so that has been a problem.idelity has a giant brokerage business. they have 10,000 advisors many independent on their platform. that is an amazing business to be. gerri: it is growing. >> they're very good in that business. gerri: that is interesting. they have a legendary name at this institution at fidelity. how is he doing? isn't he getting to a point where he might want to pass the baton too? >> he is 54. he manages con interest fund with 100 billion in assets. he is an amazing fund manager. he had his ups, he had his downs. i don't think he is going anywhere. fidelity moved away from the star system. dennis is the best known manager but there is young talent out there to be watched. >> talk for a second what is going on in the fund industry generally. i think it is fascinating that reins at fido is changing hands. pimco with bill gross going. is there something in the water with fund companies or what is going on? >> we're seeing older people shifting chairs for sure. gerri, you and i been in business for

blackrock, lloyd blankfein. melissa: corporations don't create jobs.hat sy amazing. >> they support her. melissa: cosmopolitan magazine will shuttle college voters to polls in north carolina. tough listen to the story. party bus and models obviously included. they looked at 10 races. they endorsed democratic candidates in all 10. had a contest with colleges to see which college they would go to in order to shuttle women, to the polls. they chose the kay hagan race in north carolina. they're bringing buses by with models, party buses, to take women to the polls. >> male models. melissa: where they are endorsing democratic candidates. and they say they like the democrats because they're for women's rights. this is cost mow. cosmo, puts half naked women on the cover and inside talks about why it is important to be great in bed. >> "cosmo" tells all. melissa: byron, what do you think? >> this is classified as in-kind contribution to the democratic party but not at all unusual. look at magazines like "vogue," i think i saw that "vogue" is planning another h

. >> by the way, the world is flat according to larry fink at blackrock. lloyd blankfein at goldman -- >> i don't think she really believes it. i'm not -- >> i know. you just said, though -- >> to sort of mollify the left. to run back to the middle. and then all of a sudden -- no? >> my view is -- >> you don't think she's like her husband? >> no. because i think the democratic party has fundamentally changed. you used to hear about new democrats when bill clinton was in office. there was actually something that was much more moderate that had a big say in the democratic party. they don't have the big say right now. who has the big say in the democratic party? the labor unions, sieu. >> i don't think you have to worry. i don't think she'll be the democratic nominee. >> i'm telling you she will govern -- i don't care what's in her brain cells. she started out as a barry goldwater republican, went to law school, met her husband, became a committed liberal. >> sat on the watergate committee. >> she's taken money from goldman sachs. and now she's telling us the

i asked larry fink at blackrock.e asked lloyd blankfein at goldman sachs and tony james at blackstone, three major hillary boosters on wall street will raise her money what do they think? guess what they said? nothing. they won't return my calls. >> won't return your phone calls? i was on edge of my seat there. they won't return your phone calls? what are people telling you off the record? >> they think she is insane and they think democratic party -- melissa: totally insane. >> think of it. the bottom line is this. how would her husband respond to something like that? he would have threaded needle in a lot different ways. one problem hillary clinton has got, this is money show, does reflect your money, left-wing of democratic party controls party. believer in higher tax, higher minimum wage, all the lefty things. she has to say. melissa: we're down 90 points. >> when i started speaking we went down? melissa: all your fault, charlie. this is of course after the fed decision earlier today. people are having a chance t

get involvedcan't in the action and you only have pimco and blackrock and hedge fund managers who stockway too much on greek and italian debt, there is a problem when they go for the exit. >> if the prices do gap downward and there is nobody there to causes peopleling to start to see losses in their portfolios. thething did happen over past few weeks that did create some fundamental concern in high yields. particularly the energy sector. i talked to traders who are selling energy-related high-yield bonds who could not find a bid. oil prices plunged to the lowest in four years or more. some of these energy companies are dependent on oil prices and saw a dip in value in a tremendous way. revenues go down and they are forced to post more cash for their credit lines, it can become a serious, fundamental issue. >> let's talk about the ecb missing the mark. how may times can the ecb missed the mark? even this morning, it is still a bit confused. yesterday morning, they were has overdonerket its expectations. we are not going to go out and buy that much and if we do it want be until december.

. >> blackrock, pimco. we spoke with andrew who said everyone has a different diet.l of risk and pricing, it may offer an opportunity in terms of asset allocation. as we believe it does. -- >> we believe it does, manus. on a simple credit basis, default are low. leverage is relatively under control in the high-yield and loan market. profitability is robust. it is a decent environment for high-yield. >> stay tuned. another conversation after a short break on "countdown." ♪ >> welcome back to "countdown." 7:22 in london. we are back with our guest. let's look at what we have learned about where the fed is heading. i have heard people talking about qe four. i we heading in that direction? commentsestions -- the were interesting. he was pointing us back to what the fed was saying. presentsition is to inflationand 6% -- 2% and 6% unemployment. broadly, about the view is about the data. >> you wouldn't buy treasuries would you? >> we would not be buying them right now. that is correct. what we are beginning to dip into the fringes is emerging-market debt. there has been a

buttility here to stay, what is blackrock saying in terms of timing?shift back to normal. we have gotten used to and complacent with this idea of record low volatility for a couple of years. now we see it really picking up as people get more used to the idea of the fed backing away from the bond purchases next week, possibly forever. there are some questions about that. but they won't be stopping the quantitative easing justice, and he will be hiking benchmark rates next year. >> it looks like when you look at the landscape, whether or not investors are looking to dump the riskier assets hold onto them. >> there has been a huge swing and high yield bond values. some investment firms are saying now is a good time to buy, as yields are high. at the center, people are saying we're going to be entering a sustained rising rate environment, these bonds have most fromiting the the stimulus program. they might stand to lose the most win rates to rise. at the same time, rates are not rising. rise, butect them to they are falling. the 10 year has come down 3% si

blackrock's chief executive warning of a liquidity crisis. larry think saying the regulators need to focus on the future structure of the markets with alternatives to bank dealers. capital also prompted banks to charge more for liquidity. samsung saying it has developed wi-fi technology that is 10 times faster. hd videos to be streamed in real-time. the smartphone maker, we have seen a 60% drop in operating profit. up. extending.elf -- last week's selloff extending. ♪ >> the selloff continuing this morning. the economic slowdown may delay interest rate hikes. thank you for joining us. but start off with what is going on in hong kong. the protests continuing. the police making a marked appearance. how much damage has this done them in your view, to hong kong's reputation -- has done, and your view, to hong kong's reputation? >> modest. some of the complaints are symptoms of success. too much money flowing into the hong kong property market. this is not a city that has been struggling. by global standards, hong kong remains very successful. tho

. >> we caught up with the black rug ceo -- blackrock ceo.tility wasn't necessarily a bad thing. >> markets need corrections. corrections are healthy. you can just go up and up. >> except it was corrected. now we are where we were before. >> we had a 7% correction from the high to the low. correction. that a it weeded out the excesses. the markets were on more stable ground. earnings are validating stock prices. ifa long-term investor somebody is focusing on their retirement, i would be buying equities. >> for more on market volatility we are joined by the foreign exchange strategist. about thelking brazilian election. it doesn't matter who wins. the real heading lower. is that true or not? >> i tend to agree. some investors are a lot more focused on the short-term. on election focus results. of course it is a digital outcome. lot,arket seems to favor a given the economic challenges, the fiscal challenges to the economy. brazil has been trading over two years under the strict intervention framework. we are off the commodities cycle. china is

breaking up with the less popular girl to go for a new popular girl, the moment.the movement -- blackrock favor five years ago but have received a lot of momentum. , all of the infighting and the drama and the soap operas. who wants to deal with that? to go out with the girl who causes that much drama. >> you want a little drama. >> i want no drama. prudential is definitely over 40. [laughter] to me.s a lot of sense this is a fascinating saga to watch. >> pimco is surprised to way bill gross left the company. >> are they really that surprised? >> the way he left. there was a lot of damage control after. you wonder if the damage is still being felt. >> they are still writing this narrative and he is one step ahead of them. >> facebook's increased spending. we will dig deeper. the latest forecast and projections for advertising. ♪ ,> number five is facebook gearing up for a spending binge. investors do not like that. a sixtht estimates for straight time. mobile advertising is still growing, advertising rivals like twitter. it is closing the gap to the almighty google. joining me now is the

if blackrock and fidelity are long on the market and they don't want to buy more, goldman sachs and morgan buy more. >> there is a lack of liquidity in the market and it's not just corporate debt. treasuries are even seeing volatility potentially because big block trades are not happening there either. in the high-yield market, even hedge funds that might have been short, why will they come in now before the end of the year? throughout this whole fed experience, we took all the treasury traders and we made treasuries rich through qe and we took the ig traders and made them become hy traders. wanted to haven happen. he wanted us to move across the portfolio ballot and take risk and get this economy going and we are generating jobs and of a 5.9% unemployment rate and sentiment is strong and things are good. is better than it was years ago. how do you take us from this constant drip of medicine that got us to take risk to being off the drip and not making a mistake when we do it? the answer is we will make mistakes. y treasuryre and ar dots -- debts being run by grown-ups? ] >> i cannot say.

investment officer of blackrock said as long as as the fed is able to anchor the 10-year. >> that will be something interesting to see as we go through this morning. let's begin this conversation on the markets. you witnessed it yesterday and let's also try to get my bow tie straight today, olivia? >> a little wobbley. >> maybe refill the punch bowl. adam and i both have it today. it's friday. show some budget taxpayer discipline. just do something as markets gyrate and yields crater, do something. economists have seen this before in 1932 and the professor of "do something" at dartmouth is aclaimed for his classic wage curve. he does not like austerity and he joins us this morning as well. richard farley with us as well. we will talk. >> he has a practice in do something? >> yes. >> if you go back to the early 1930's the original quantitative easing was when roosevelt bought gold and it was like the assistant secretary of the treasury resigned and they brought in an unknown. >> there's a debate we see your work with the bank of england swharible. hi and >> the mood music is moving towa

a new survey from wall street powerhouse blackrock finds more than half of american investors are positivegh cost of living, state of the economy, and health care remain a big concern. they polled 27,000 people f0or their global survey. rob joins us now. good morning. >> good morning. >> what was one of the most significant finding? >> well, it's really interestings to interesting to go out and find out what investors are thinking and the public is thinking. what is interesting is people have not saved enough for retirement and they're really quite worried about that. what we found out is those trying to do something are doing the wrong thing. it was a fascinated survey for us. we found that most people, most households are sitting in cash and you report on interest rates all the time. we know that they're very low and cash is just the wrong thing to be doing when you're planning for retirement. >> what about cash is king? >> retiring people should be looking to invest today because you can't invest in the future for the future. >> i love that. that's your slogan. >> for us we think it's

he runs blackrock. keenan's boss, who was just here a few moments ago.heing to him difference between short-term-ism and long-term is in. larry considers himself a long-term kind of guy. he is openly asking some of the same questions we are asking you. >> there's a whole debate about long-term short-term, it has two -- we have to bring that back to the owners. what is your responsibilities? is the totality of it just maximizing profit, or is it trying to learn a very good return, and would you sacrifice any return if you focused more on long-term horizons? >> so if a guy that oversees $4.5 trillion, is saying, maybe we ought to think about returns, in terms other than just pure profits -- what does that mean? >> i think there is a sea change going on within the is this community. , in hasn't been the threat terms of what people have gone after. patagoniae founder of , who still is a privately held business by the family, i think he really has been a leader in doing good work is good for business, and companies and corporations have to have greater criter

rick reader from blackrock commented on that to your which of the time was trading at 51 basis points this morning. 38 this morning. institutional investors are betting on a higher rate and they are wrong. after another. >> no question about that. the idea of the yields down for white set of reasons. we can dive into this this morning. what happened at 4:17 this morning was interesting. iag. scarlet fu just laughed. there was jpmorgan's earnings. >> it is supposed to come out at 7:00 a.m. and there like clockwork every quarter. there always release it at 7:00 a.m. there he came out at 4:00 in the morning. apparently, it was an early release. >> did they put it out or did someone inadvertently release it? our finance team suggest jpmorgan put it out a little too early. >> and the headline there was a $1 billion legal expenses. and missed consensus. how much fun is banking right now? >> this doesn't stop, does it? it is entertaining. you're watching the movie too fast. this is a slow economy, a very slow recovery. everything is falling in place in terms of an clan. you have the loan cyc

the fact that dodd-frank is they the negative here is cannot absorb -- when blackrock or pimco or whomevereeds to sell -- >> you cannot have it both ways. on one hand we want the banks to be more like utilities and on the other hand we are complaining because they're not making enough money -- >> imf eu -- are we in a better situation? -- i am asking you, are we in a better situation? we need toare, figure out a better benchmark to figure at how these firms are doing. theilize the market -- street cannot stabilize the market. the federal government is the only one i came in and stabilize the market. >> i think it is interesting -- you think we are in the golden age because the economy is going to improve, but at the same time you realize that this u.s. economy is addicted to the opiate of quantitative easing -- that cannot be good. >> not the u.s. economy, the stock market, people on wall street are addicted. >> got you, good differenc tiation. michael moore, thank you so much for joining us as well, very interesting chat on goldman sachs. a problem or a lifestyle choice? we will leave it

and future 401(k) investments will be managed by blackrock through its bond index price. you very much. >>> here is a quick reminder of your headlines this morning. shares in yahoo! given a boost as the internet giant's third quarter revenue beats forecast. >>> report out of a spanish newsletter, saying 11 banks could fail the upcoming stress tests. but the ecb says everything is speculative at this point? >> glaxosmithkline is moving to rans the ebola vaccine at an unpress dentd pace. >>> marissa mayer defender hesitate role at the helm of yahoo!. full defails from that earnings report, next. how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investin

and on wednesday here, we hear from bank of america and blackrock as well as e-bay and netflix where subscriber growth will be in focus. later in the week, goldman sachs and google will steal the show. friday closes out with general electric and morgan stanley. so a really big week for markets and for the earnings season. >> absolutely, seema. all eyes will be on the earnings. could a stronger than expected q3 earning season give markets a much needed boost? head to our website to find out what the experts are saying. that's on cnbc.com. >>> a texas health worker has contracted ebola after treating a liberian man who died at a dallas hospital last week. the woman who has not been named is the first person to contract the virus in the u.s. jay gray is joining us from texas with more. >> reporter: hey, there, good morning, wilfred. the centers for disease control called the latest development, quote, deeply disturbing in the fight against the deadly virus for doctors and nurses here does shift to one of their up. as you talk about, they won't release her name but are saying this health