blackrock is the world's largest money manager by far.rik schatzker sat down for an exclusive interview with larry fink this morning to talk about a wide range of things. you asked about the likelihood of a recession on the heels of that? people have said we are going to be in recession and the u.s. economy will be in recession and in rubenstein case, he said 18 months from now. clearly a recession outlook would not justify a 25 basis point rate hike by the fed or the clyde passing the fed laid out yesterday, which would take us to something like 1.25 on the fed funds target 12 months from now. so i asked larry fink what does he think the risk of a recession in this economy really is? larry: the only chance of a real recession is if china's leaders miscalculate their needs and china slows down the more china, with their needs of reinforcing their economy, devalue their currency more rapidly than we all expect. that would cause more disinflation worldwide and cause a higher probability of some form of recession. volkswagen says it is namin

francine: blackrock is turning up the heat on glencore.wen: i will make the point that a company such as glencore, the mining industry, has to decide whether it strategy is is,ivable growth and if it then maximizing cash flow becomes a really important, and it gets proportionally more important in the mix. as an aside, it is extremely rare that we would make a public statement of that nature. francine: when is it going to get easier? these are extremely bloated companies because in the good times they probably overspent, profits are down, we do not really see an end in sight to the glut. javier: it is true for the whole natural resources sector. it is going to get better when china gets better, and the demand for commodities recovers. if that does not happen, it is going to be a very painful prices because lower prices, lower investments. a bit of an increase on demand, and that takes time. turns around very quickly, the natural resources sector needs to be prepared for a long drive. we are hunkering down, and i think that applies for the

you have fidelity and blackrock, but they are not writing public letters.sa mayer is going through. can you do your job when you have hedge fund managers in new york behind desks, pointing fingers and shouting accusations? marc: yes, that is your job. you are right -- you are running a public company and answering to public shareholders and you have to answer to customers also. if you want to be successful today as a public company ceo, being advice, move from focused on shareholders to stakeholders. activist shareholders are a key stakeholder, but let me tell you another, customers, employees, partners are stakeholder, the community you live in is a stakeholder, your k-12 schools that your employees have their kids in, women are keep stakeholders in silicon valley. you better be ready to run a multi-stakeholder dialogue. that is the key. you canan read, if manage -- if you can read, manage, run a multi-stakeholder and you have to do all that, but you have to be evolved to a new level. that is the key. andou get tunnel vision and it is all about activist st

and i am a fan of public investors, like fidelity, blackrock, these are great investors. going to make bets on private companies, that is appropriate. as i said, the mania, the unicorn mania is dangerous for our silicon valley economy. ♪ ♪ yvonne: welcome back. as we wrap up our show this week, more of stephanie ruhle's exclusive interview with marc benioff, chairman and ceo of salesforce. they turn to the accountability and responsibility of the ceo. stephanie: is it dangerous for companies, for ceos leading the companies with activists? you have a shareholders like fidelity and blackrock, but they are not writing public letters. look what marissa mayer is going through. can you run a company and do your job when you have hedge fund managers in new york behind desks, pointing fingers and shouting accusations? marc: yes, that is your job. that is what you sign up for. you are running a public company and answering to public shareholders and you have to answer to customers also. if you want to be successful today as a public company ceo, let me give you some advice. you ha

russ is chief investment strategist at blackrock. always great to see you, russ.s this sell-off over the past two days about rising rates? is it about falling oil? or is it about the effect that falling oil is having on high yield? or all three? >> well, i think it's mostly the last. and i'd put one more category in there. the market can withstand a gentle tightening by the fed, particularly if the starting point is zero. so i don't think a couple of hikes or even four hikes next year is the end of the world. what is a challenge is what's happened this year. that if the fed is hiking at a time when most of the other central banks are easing and we see another rapid appreciation in the dollar that's becoming a very big headwind for u.s. companies. it's one of the reasons earnings went nowhere. and that to me is a bigger challenge for stocks than whether the fed does two or three hikes in 2016. >> so is this going to continue, this type of sell-off into next week? it's going to be a week with thin volume because a lot of people take that week off, the next two weeks

i said it to larry and i got respect from larry that blackrock is the etfs, blackrock and these otherause there's no liquidity behind these etfs. >> those two guys were arguing in delivering our alpha thing. it was uncomfortable, larry fink and still continuing. >> still battling. >> today the "wall street journal" reports third avenue manager ceo is out. follows the collapse of the company's junk bond. joining us now is bob doll. as you watched last week, bob, did you ever, your conviction in the long term bull case did it waiver at all watching all the different things sort of converge last week to make everything a little bit scary? >> we certainly have some issues, joe. some are fundamental, some are market structure. the fundamental ones are the decline in the price of oil and what it means for credit and high yield in particular and secondary concerns are china and the fed and antitrust. the list goes on. so this neutral broad base frustrating trading range is likely to continue. the market structure issues are the absence of the uptick rule, dodd-frank prohibiting banks from ta

>> financial stock we like the most is blackrock. we think they're well positions.y have been punished by what is going on high yield market because of their exposure to etfs. we think blackrock is well-positioned, well-managed. you want to own the stock in next 12 months. liz: give a nod jpmorgan chase and are you worried about financials if we don't see a quarter of a percent hike tomorrow? >> no. fed has done a excellent job forecasting it. it is really the press conference. we believe janet yellen will bend over backwards to say the fed will be judicious. they will keep the economy moving n that environment, stocks could do very well. we're very positive next year. liz: key word would be gradual and moderated depending on what the economy is doing. john, thank you so much for joining us. we appreciate it. >> thank you. liz: john treanor, people's you nighted wealth management cio. stay calm. they will be fine. buy financials. they stand to do well. we haven't seen back-to-back gains in the s&p 500 in six weeks. we may see it today. that will do it for "countdown

we have richard fisher, james grant, blackrock's rick reeder and diane shwonk on tap for tomorrow. >>> let's now get to some breaking news on the school bomb threat in los angeles. earlier today, julia boorstin has more information for us. >> reporter: that's right. the threat that led to the shut down of the entire los angeles school district was likely a hoax. now, this assessment by those federal officials that this was a hoax here in los angeles, very much echoes what we have heard today from new york's mayor as well as new york's police commissioner about a threat that the new york school district received as well. now, of course new york did not choose to shut down its schools because new york based on its assessment decided that threat was a hoax, but here in los angeles, the los angeles mayor, school -- head of the school system here as well as the police chief here have said that they have -- that they stand by their decision out on an abundance of caution. we have to remember here in los angeles, we are so close to san bernardino where there was that terrible terrorist attac

on the other hand, blackrock manages 400 times that much.ow do you think a firm like that will make a difference in finance, and the kinds of companies you are investing in, some i have never heard of. they are doing this innovative environmental stuff. others are mainstream companies. how do you think you are going to make a difference in finance? and with the kind of companies you support ?mr. gore: first of ?- support mr. gore: first of all in markets when a new model is proven know very sufficient time, to produce better results, it attracts imitators, interest from those who want to do better, and as you said, it is a darwinian process. when a new model is successful, people pay attention to that. we hope that they will. there is some evidence that they are. you manage risk better for one thing. you unlock investment opportunities better. we have used the spectrum analogy and you explain that fairly well in the piece. it is a simple way of communicating this. the portion of the spectrum you can see with your eyes is tiny but i spent eig

and buchanan joining us now blackrock's mark wiedman is to with this. how bad are things in high-yield? >> well, if you're talking about liquidity, liquidity is pretty challenged right now. i would say that it is not really sneaking up on anyone, most investors in high yield have been aware that conditions with respect to liquidity are pretty strained right now. but the flipside is, fundamentals actually aren't that bad. energyu have a sector to and commodity related under some stress, but away from that, the fundamental environment is reasonably healthy. stephanie: are you feeling any pressure or what is your view on hyg high-yield etf? we have seen others from oaktree a night had considered -- criticize the etf segment etf has promised liquidity and a market where there simply is not much. >> well, i think to date, etfs have reason -- proven to be quite liquid. $15 billion product when you talk about hyg. .ery actively traded i think within small doses, it asked the can help improve the overall the quiddity profile of the market. the issue is, it is t

-- from a blackrock. what are we going to expect? jon: they have the asset purchase program and they can alter the size and composition and duration of it. around those three things, the composition, we know what they are buying. the duration, said two men september 2016, how much longer -- set to end september 2016, most people think it will go way beyond their. when you get the squeeze of the shorts but stay there below -- approaching 107, very interesting, the front end of the boom curve, arguably -- thehe headline itself that rate has just been cut to -.3% and no more. a five basis point move on the german two-year. it will be interesting to see what happens in the news conference. stephanie: the financial times has made a correction. they said the week that they put out four minutes before the release was incorrect and a mistake. they have made that correction. there is a full-screen correction. please ignore earlier tweet. error.s published an -- in error. we did see a market reaction to the incorre

to discuss more, portfolio manager over at blackrock.do you think the data in emerging markets is turning around? >> there is a marginal improvement, particularly in the expectations. everyone was extremely pessimistic about emerging evaluationlowing the of the chinese currency. it permeated all across the investors face, and that had repercussions on the whole year. are better.ions alix: what does that mean as we head into a possible fed hike? i was interested in a chart from credit squeeze that talked about what the emerging market index has done in relation to a rate hike in japan? they have rallied. tohas been anywhere from 15% 37% in six months. could this be a buying opportunity? there will be growth in 2016, but there will be headwinds that we have to get over. prices, theity continuation of the china slowdown, tighter fed -- i think the most important thing is there is no one emerging market. there are many different parts. there has been a high dispersion from returns. this is the third-largest dispersion number following the gl

in the last hour, we will be joined by rick rieder of blackrock.ng up on "bloomberg ." tom: david, thank you so much. it is jobs day, but we are focused here on the linkage of economics and financing in climate change. francine: that financing that we hope we will find an agreement on is basically the promise from the wealthier nations of the world, that they will give $100 billion to the poorer ones. we also spoke to the columbia university professor jeffrey sachs earlier today, and he was saying we will get an agreement but it will probably be a watered-down one. jeffrey: there is no time or taste for the really tough agreements, and when you have the president of the united states basically maneuvering so that he does not have to put the signed agreement back to the senate, you know that you cannot go as far as the rest of the world actually would like to go. on the other hand, i think there is a will not to let this whole thing crack, he does this meeting is five years in the making. this is not just the last six months. five years we have

morgan, blackrock, and others. joe: they will be equity focused managers? >> they will.it's much broader than the s&p, things that are focused on asian growth equities, so it ranges the gamut. joe: do we know the back story here? >> she has been living in bermuda. it is a pretty small island. everyone there knows each other. she knew the ceo. alix: how does this compare to her whole career? she had great calls during the crisis. talk us through where she went and where she is now. >> it's different in that she is working for an insurance company. a's only $800 million out of $15 billion portfolio, focused solely on equities, which is what she did. now she will be focused on equities around the world. joe: do we know anything about her thesis these days. that she have any big ideas? >> she joined on december 1, so a very recent job, and we will be seeing who she chooses to work with. she will be choosing a lot of money managers. alix: thank you so much. we do have breaking news concerning candor morgan. kinder morgan. it cut its full-year dividend by 74%. this is huge. ml

the managing director of emerging-market portfolios in blackrock. joe: thank you for joining us.lways this debate, is a rate hike bad for e.m.? less cheap money? or is a good because he gets the uncertainty out and people can go investing in e.m. again? did we learn anything that settle this debate? >> it is too early to tell. but the bottom line -- if you go history, it makes liquidity that much tighter and it makes our fal global funding. with time the fed hikes, one exception in 2004. way -- iarned the hard think this time will be different. i think this time we are better able to handle this hike then the market anticipates. think about it. the currency is much more flexible, the adjustment mechanism is right there. high, and that gives them a lot of cushion to absorb the shock. liabilityollar is much lower this time around. leverage is high in e.m., but currency debt is much lower. the combination of these things tell me that we are able to handle it. we have other problems, and i don't think the fed is one of them. scarlet: the tough medicine the imf administered during pre

this is an investment grade etf run by blackrock.t is concerning to people that you see these massive declines in the price and also you see ongoing withdrawals. that's usually a leading indicator suggesting declines will continue. if you look at franklin resources, one of the bigger money managers with high-yield funds, they have a lot of the distressed assets which have gotten hit much harder. their shares are down to the lowest since 2012. have beene people saying this is worrisome because we saw similar things ahead of the last financial crisis. to what extent is there much salience to those calls? a lot of escalation here. : this is incredibly different in that there's not one major counterparty on the other side of a highly leveraged bet. --re are many levered bets and here and leverage has been built into the system based on these companies that have are at hundreds of billions of dollars since 2008 at really low yields. free moneyn given and now the bill is coming due and they cannot pay. gaswhile, you have oil and prices dro

. ♪ alix: coming up on bloomberg television, the blackrock global head of shares will be joining bloombergw at 9:00 a.m. eastern time. you don't want to miss that conversation. scarlet: i'm scarlet fu. "what did you miss?" let's look at the biggest stories in the news. bowling goes it is quarterly dividend by 20% and offered a shared buyback plan that will enable investors to cash in on foreign airlines. but when you speaking with other companies to speak about the longevity of the market. cheniere energy board of directors terminated the ceo. in an interview, he said that a directors wanted him to slow growth and liquefy natural gas is, and what have carried out wishes but was not happy about it. he says he still owns 5 million shares and plans to be a vocal investor. scarlet: apple music is getting the best holiday gift from taylor swift. she is releasing her world tour concert exclusively on apple music. it is free for streaming for apple music users. it is set to release on sunday. apple music is currently the only streaming platform selling her best-selling 1989 album. that is your bl

we know in 2009 blackrock bought ishares from barclays bank.lackrock has a big inventory of junk, and that's important in this example because when somebody goes and makes a trade in the high yield hyg etf, there's a ladle of a security that has to be put in or needs to be purchased in the market, but they can use two ladles. they have a special purpose vehicle where they can use their inventory or they could actually go to the marketplace if there really was a marketplace. in a perfect world where computer trading was liquid, they could find those securities, but the issue is when things dry up because much of the high yield sector is buy and hold to get that extra return which is what the fed did by design, what we all worry about is if you're nervous about the liquidity or how many 32nds in treasury it is takes to satisfy an order, you have to go to multiple levels beyond that when you start getting in the high yield and junk. remember, when you trade futures, it's generic. it's like milk, like white paint. but in the junk market, it's kind

stephanie: blackrock once the budget returns.iament to bring it down. -- are funds: to work learning to work. especially this year. if you are searching for 12% 15% without realizing it was, this could be a difficult environment to find that return. david: i wanted to come back to what you said about the effective tax cut because of lower energy to the american people. we have heard a lot. why are we not seeing it? it has been there for a while and more is not showing up in the economy? peter: the labor market is healing slowly and janet yellen has been clear. there is a lie until you see the income and wages,, eight months to nine months. one of the statistics i have been looking up for the last decade is at the university of michigan household survey with income expectations. ask the american family what they expect their income to be next year as opposed to this year? from thousand eight until one year ago, zero growth. prior years, 2% to 4%. it is stabilizing back up around 2%. labor market is healing, income expectation is s

last week, there he think of blackrock said she nailed it. of blackrock said she nailed it.in the q&a, she nailed every answer very well. stephanie: larry says she nailed it. oksana: i would agree. she absolutely nailed it. you had exactly what you would want from that hike. the bond market did not freak out. the equity market has reacted positively. i also wanted to comment on the whole idea that the u.s. economy is not strong enough, or this was not the right time. the reality is, we have, u.s. average hourly earnings are up 2% year-over-year. u.s. real consumer spending is up 3.2% year-over-year. we saw the number come out this morning about jobless claims coming in quite strong. we are at 5% unemployment, and the fed has always telegraphed that. they are looking for the uninformed number to get better, looking for inflation to be on the right trajectory towards that number. so i think absolutely, she nailed it 100%. keri: so you are contending the data backs it up? oksana: the data backs it up. the market reaction was very positive, if that's any indication. frankly, nei

there was a great store today talking about how jpmorgan, blackrock, all the big investors are seeingisky portions of the european sovereign debt market as potentially promising next year because of the draghi put. carol: they say that play is still on. another world in terms of u.s. equities as we wait for earnings. is that the next big focal point for the equity markets? >> it does become that, if only because we have two weeks of a lag here before those results show up. looking at the latest numbers -- looking at my bloomberg terminal on the standard & poor's 500 -- carol: you were thinking of the santa claus rally. >> of course, you want things to end on an up note. that would bring the s&p 500 back to neutral for the year. in terms of earnings, people anticipating you will see a 6% decline for the fourth quarter. lower earnings in the last couple quarters as well. carol: how much of that is energy? >> pretty much all of it. that said, if you take energy out of the equation, analysts looking for a .6% decline from the rest of the s&p 500. some of the analyst commentary out there -

we are joined by a blackrock chief global investment strategist.more of the same in 2016? what do you think? >> i think some of these things will continue in. commoditiesg at under pressure. still an environment that is difficult for commodities with a weaker dollar, the climbing margins. there are opportunities, but it's going to be a tough year compared to 2013. betty: right, it certainly going uncertainch more year. given opportunities, is it going to be in equities? with caveats. we have a bull market that is going to enter its seventh year. they're a very few places outside emerging markets where stocks are cheap. overall our expectation is equity returns will be on the low side globally. betty: we have an interesting correlations, right, russ? i know we have some charts. rise, throw up these charts in outlook forruss's 2016. inflation rises, where we see the rates. do you expect to the fed is most definitely going to raise rates next week given what we have seen in the last few days, and what do you expect in the next year? russ: we think tha

i'm seeing various tweets, meltdown just beginning in the junk bond market, blackrock hitting 2009 lows. 12% of the junk market is energy. do you see any warning flags from third avenue management, is it a rerun of 2007, 2008, it was about mortgage-related debt. here we're looking down the pipe at energy and materials, are you worried? virginie: worried is not the term. it's a little crack that we must absolutely pay attention to and see if we have other situation across the financial system. at this point it's just something to watch. but clearly rising rates, commodity companies with where commodity prices are, some of them might be quite highly leveraged, this is something that is very important to watch very carefully. manus, i love your face a little bit of a crack. you're with me the next 45 minutes. sit back and have a coffee, settle in for the long haul. at the height of the financial crisis, r.b.s. is still on the road to recovery. i spoke exclusively to c.e.o. ross mcewan, he talked about asset sales in 2016. ross: because we had such a good start in the last two years and tak

erik: we're talking in the basket of asset managers, not only firms like blackrock, but , the rowe priceset managers. is there risk that those companies and businesses get displaced, not only by etf's, but the new trend in a financial technology, robo advisors? i think there is a risk and it is already happened. it has been tremendous. t rowe price is having a rough year. active management has been a rough stretch for a while. do you change course of little ?it and add resources smart data products? getting away from purely active management? it is a lower margin business. your fees are lower on active management. in the evaluation graph, you showed that is what is being played out. if active is on this long-term downtrend, or maybe it will bounce back, but there isn't a lot of confidence that it will. michael: this is like coming out of the great depression were retailers didn't want to be in the markets. the company is primarily cater to the retail side. do we see of americans wanting to get into the stock market, or are they still looking at movies like "the big short"? joyce: that pic

companies like like rock and pimco are -- like blackrock and theo are betting on writing wave.ng us, lisa abramowicz, from bloomberg's new gadfly section. been saying have don't fight the fed. now they are saying, don't fight mario draghi. they are saying we will do whatever it takes. frankly the latest statement this month was underwhelming. tot said, if you are going bet on european government debt, why not go for the risky is stuff that has some yield on it and is not negative on the yield? that is why people are going to places like greece, which is still on the brink of economic bailout.ty despite the it's bonds have gained more than 20% this year. italy and spain. why not go for bonds that have some yield? alix: the issue is it is not perfect to there. we just talked about the spanish elections. small italian banks are going belly up. talk about some of the risks. lisa: there are a lot of risks. the average yield on sovereign debt from italy, portugal, ireland, and spain is absolutely nothing. this is a potential risk should hiccups.any you are facing true economic risk.

what i find intriguing, blackrock and wisdom tree have filings for flexible currency hedging etf's.re saying i like the concept of hedging but i don't know where to do it. so these will look for signals and will change the hedging depending on signals in the market. control so you have no over that, as somebody who buys etf's. >> you are outsourcing the decision-making process, and a lot of people are happy to do that. these filings are in a race to see who could get out first. we talked about japan, but how about with insect there's, what is doing better than others? i'm sure there has to be an etf for that. wisdom tree launched a series of sectors that are hedged. they hedged health care, which is up 40% this year, which is amazing. a lot of structural reforms put into place. that one sector is now in a top 10 overall of all etf's. eric balchunas, thank you. our senior etf analyst. much more coming up in the next hour. the china beige book shows deterioration in china. we will explain. ♪ in new: it is 1:00 p.m. york, 6:00 p.m. in london, 2:00 a.m. in hong kong. welcome to bloomber

scarlet: we are joined with the managing director of blackrock america fixed income group. to ask you to put the data in perspective. last week u.s. manufacturing numbers showing that we are at a three-year low. inflation data tonight is likely to confirm the weakness. qualify for us this persistent weakness of china. amer: listen, the data this morning confirmed to us what we have known for a while. this is stabilizing at fairly mediocre levels of growth. thee are serious risks of economy falling off a cliff, the kinds of risks we thought were occurring in august don't seem to be there anymore. at the same time, as evidenced by the weaker earnings in exports and make manufacturing and the sluggish investment spending, it is selling us this is not an economy that is creating much dynamic to a global economy. it is not a danger but at the same time it is not excitement we were looking forward to in china. alix: how the other asian nations opposed to export and import to china factored in this new normally -- this new normal yet> amer: almost certainly. you are seeing it in t

mark wideman is the head of ishares blackrock. he stopped by this morning talk about it.g a pretty easy time managing our high-yield portfolios. the assumption that the high-yield market is illiquid, having more problems than usual, i don't think is founded by our own trading experience. scarlet: so let's talk about the role of exchange traded funds in junk on funds. here with us is eric balchunas on princeton. -- the wayne that that one may think of it is like this -- when the market decline, investors sell etf's. then the manager sell securities to fund redemptions. what about that is not true? >> you just described a mutual fund really. the difference between a mutual fund and an etf, when a mutual fund investor wants to get there holding back, they are forced to sell. in an etf, 87% of the people friday, got their money back via other investors. the bond isof really part of the authorized participant to the market makers. they are doing that as part of arbitrage when they see the they go below the nab, will recognize an arbitrage opportunity, and that is where redempt

if you are a retiree like so many of the blackrock customers and you are prepared to hold your high-yield to maturity, you should be fine. that's because absent a wave of , thelts, the bonds principal be repaired and you'll walk away and be able to decide what you want to do with that money. alix: in the high-yield market, they are trading at it will return basis like we are in a recession. erik: take the energy a way that does not look like that. alix: what did he say about recession? erik: he thinks we are in a below trend growth. ask them what normal looks like and he will say we know -- we will know it when we see it. of growthft period and he sees that for the next several years. if there's going to base a prize will not be from china, it's from europe. i would not say he feels as bullish for the european economy and european risk assets as he might have felt for the u.s. economy three or four years ago but i hear something similar. if there's going to be a surprise and the upside, it will come from europe. don't look for it in the u.s. economy and certainly not in emerging markets.

on friday you saw the price of the biggest jump on ats, a blackrock fund, plunge, the most since 2011. you could just see a tank right there preview can see that there was just nobody around who really wanted to make a bet on high bonds. this is a big concern when you are hearing about redemptions from an increasingly number of funds, and people are wondering, technical it may be a affair right now, but a technical event that goes on for long enough becomes fundamental. underpinning the weakness you are seeing in junk bonds is energy. i want to look at an index of energy junk bonds, and you can see that the price is completely plummeting. the value has completely plummeted, and this is fundamental. this has to do with oil prices that seem to be in absolute freefall. supply does not seem to be slowing down at all, even though demand clearly is tapering off. this is clearly underpinning some concerns, and this is fundamental. oil prices are not turning around anytime soon. what does that mean for the broader market? jimmy: i do not think that is a terrible thing. let oil go where it is

big interview next hour because you'll hear from that guy, blackrock global head of i-shares, mark wi>> headed live to the nymex ahead. but a big upbreak for kleenex and paper towels. we have street talk when we return. rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. >>> i'm sharon epperson and here is your cnbc news update at this hour. the u.s. army says the case against sergeant bowe bergdahl will move to trial by a general hart martial. he's facing charges of desertion and misbehavior before the enemy. he was captured after walking off his post and was held captive for five years. >>> in a new nbc news/"wall street journal" poll that shows hillary clinton would defeat the current gop front-runners ted cruz and donald trump in a general election. in

you have got jpmorgan and blackrock, equities. stephanie: hold on.nagers, then she is not managing any money. >> it sounds like it will be something slightly more glamorous. how much money? >> $809, which to be fair, her hedge fund was $59. stephanie: it was a little more than 50. the fact that she is investing in other managers right now, it is a whole lot here at >> it is true. i bet you it is not what she was thinking she would be doing at the end of 2015 she was probably excited about the idea of running money, running hedge funds. how much of this is running managers versus, here is a clean paper. you go. >> a good question. we have a hint of what the answer might bp we were told as of late september, before she started, the portfolio is a hundred nine dollars. that says to me it is an existing portfolio she is diving into work on. i think she only started literally last week. stephanie: we have to leave it there. we have a millennial on the set. max, thank you for joining us. everyone's dream job is to work in an environment that supports work

blackrock has also liquidated funds.ns us, thank you for joining us and welcome to bloomberg go. aaron: it has been a bit of a mixed bag, disclosures are not necessarily related to performance, they are related to the back that business has gotten complex. it takes time and energy to do things other than invest money. that causes these guys to think they should just think to -- just stick to managing their own money. that is fascinating to me that they are not getting out of the game altogether, they say they will park their own money and focus on their own wealth. what is it about the regulatory environment that makes it more difficult? think it's that, there is scrutiny on fees in the hedge fund business and classes that are redeemed to be more expensive than your traditional asset classes. i think it is the overall idea that these guys have so many other things to do than focus on managing the money and they are limited in the scope of what they can do based on what they talk to their investors about. togives people m

so they are picking up and calling goldman sachs and they are calling tcw, fidelity and blackrock, howt need goldman to do that because they don't take the risk anymore? if they are acting as a new broker broker, why get paid the big? ifan: i would be surprised we ever see a market environment where we don't need the intermediary because when happens, we, tcw, other peers of ours, competitors, we have relationships with these broker-dealers. they have an obligation to us to provide some sort of liquidity and service. we and competitors, we don't have any obligation to each other to provide that service. there are electronic trading networks and you know what? in the good times, those networks work. not in the tough times. liquidie: for example, networks here saying, the new world, everybody will be trading on these platforms and you won't need these individual broker-dealers anymore, is that not the case and in tough times, do you need them? bryan: maybe not in treasures, but anything with a hint of credit or could widen in terms of yield for spread to treasuries, in our opinion, you w

. >> let's bring in jeff rosenberg from blackrock. good of you to join us on this big day. we're all feeling it's not so much about the hike today. it's more about what the fed signals for down the path and essentially taking the sting out of any hike they do. how high is the risk for miscommunication, that the market could misread or latch onto the wrong thing. >> that's a great question, mandy. we've seen many fed meetings where communication mistakes have been made, and this is a situation where the fed has to tread a very narrow path between justifying its movement off of zero interest rates, celebrating the recovery in the economy, but still not signaling so much confidence that they threaten a faster or more hawkish signal of faster increases in interest rates than the market expects. so that's a pretty difficult communication challenge. we've certainly seems times in the past where the fed has failed in that communications challenge. so that's going to be really the key issue coming out of the meeting, really left of the statement and ep the statement of economic pro

for more, the chief investment strategist at blackrock.orning, of course, is whether we're in for more volatility and to the degree we have this conversation in the 6:00 hour. fed get it right, but maybe just for a day? >> well, the fed got it right, long past time to normalize rates, but, you know, again, keeping the market happy is not part of the fed's mandate. the problem is we've been in an environment of unusually low vehicletity for a long time, and it's not that surprising that volatility is reverting back to something closer to normal. >> and -- but in terms of how much volatility you expect, then, over the next year, it looks like what? >> it looks like this level, if not higher. there's things going on, one of which, again, you are removing this factor that had been suppressing volatility for so long. ultra loose monetary, and you see the credit cycle is further along, and the backup we've seen in spreads is something that typically happens alongside higher volatility. finally, you know, joe, this is another year of disappointin

especially, as cooling off a little bit, right down to snapchat and drop boxing evaluations by fidelity blackrockr airbnb. >> because people felt that part was overheated. jo ling: also competition, home away acquired by expedia threatened by aband b hilton saying not threatened but saying so what are they thinking. maria: good point jo this you southwest air also ceo gary kelly with us talking implications of lower prices on airlines. >> take a look at items on auction block keep it right here fox business network. anncr: when the attacks come here... ...the person behind this desk will have to protect your family. will he be impulsive and reckless, like donald trump? will he have voted to dramatically weaken counter-terrorism surveillance, like ted cruz? will he have skipped crucial national security hearings and votes just to campaign, like marco rubio? 27 generals and admirals support jeb bush. because jeb has the experience and knowledge to protect your family. right to rise usa is responsible for the content of this message. maria: welcome back, good morning. i'm maria bartiromo, happy tues