eastern time blackrock chairman larry fink will join us. parade of top executives doesn't stop there. we'll bring you exclusive interviews with the ceos of eli lily, united airlines and hasbro. >> caruso is -- >> my father. >> cabrera is my mother. >> why do you do that >> latins do that. >> i got a couple of different. on the economic agenda key inflation data due at 8:30 a.m. eastern we get the latest consumer price index numbers and that should give us some clarity on the fed's next rate hike if there ever is one. checking the markets u.s. equity futures were sort of piggybacking off of europe this morning and up 84. got nowhere. we'll see. looks like a pretty friendly session this morning. i don't think netflix is hurting with nasdaq up nearly 40 points. here's what's happening in europe. most up 1.5%. in asia, shanghai 3080 at one point. good move there too. that's not hurting. oil apparently heading down then turned around and gave some strength to the global equity markets. for more we're joined by phil orlando and jim keerny. let's

does that persist, not just a blackrock but elsewhere?the challenge for anybody who delivers value to a customer is, is the price worth what you are getting for it? you will see the deal will rule will not in fact actually surprised -- suppress active management, but it will force greater clarity on what is worth paying for. 36 basis points may be cheap if the asset manager is delivering great value. he or she is not, then we think why not a nice -- why not an i share? rocks that was black global leader of i share talking 's erik schatzker -- blackrock global leader of i share talking to erik schatzker. vonnie: still ahead, oil splurging with $50 a barrel ahead of inventories. this is bloomberg. ♪ when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. great, that's what i said. so your business can get back to business. sounds like my ride's

bonds abandoning. >> goldman sachs, blackrock due to report shortly.wk box" coming up next. arid things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit ntrelay.com. >>> good morning. netflix soaring in pre-market trading up nearly 20% on strong earnings and subscriber growth and right after that "wall street journal" piece yesterday that now seems so precious. a flood of quarterly results. we'll bring you reports from united health, blackrock, johnson & johnson and goldman sachs. plus inflation data that's due this morning could provide som

the chief strategist at blackrock. do people love european equities because you get risk on, everything seems to be flying higher except europe. exchange product flows, we have seen the beginning -- and since the beginning of the summer, 25 billion flowing into u.s. equities. european equities continue to be unlocked. nearly 6 billion in outflows. when i think about europe, there are a lot of opportunities but from looking at the market, ,here are a few fundamentals structural issues that are behind these investor trends which have been going on since the beginning of the year. it is not new. going back to earnings not coming through, growth aspects remaining lackluster, and certainly the fact that the banking sector has not managed to clean itself up as much as the u.s. has done since the financial crisis. those three big themes, they are not new but they continue to remain unsolved and unless we find a way out of it, it will be very difficult to see a different trend manifesting itself. on the flipside, from ipod per

blackrock reported earnings earlier.racted more money to the etf funds. the blackrock global head of ishares talked about the new lower management and the reasons behind the decision. >> we see a lot of money coming into motion over the next few years and we want to win, we want to be number one across the board, we are number one across the united states, and globally, over the last three years and we want to make sure we maintain that leadership position. we expect to see very rapid growth in the next five years. jonathan: that was mark wiedman speaking on october 5 on this program. that fees have pulled in $2.2 billion in cash. our bloomberg intelligence etf analyst joins us. good to have you with us. the price war, is this a market share issue? >> yes, look, everybody sees etf's as the new investment vehicle of the future. everybody is jockeying for position. what i find interesting about blackrock is that vanguard is virtually an unstoppable force. they are cheap, everybody buys them, they have taken in 70% of the n

for "nightly bu >> blackrock, the world's cisco.arg asset manager, reported a drop in revenue for the third quarter. fewer clients are investing in high revenue actively managed funds, run by portfolio managers who buy and sell securities. ceo larry fink says his industry faces a tough environment. but fink says active investing it far f >> we're a believer in active. we had $10 billion of active in-flo in fixed income. in equities, we did have outflo on the active side. work continu to invest in our active portfolios. we're using different method more big data, factor so we're looking at difft techniques to try to earn the return after fees that our clien are. >> well, blackrock's fink may be right abo active investing, but the "wall stree today quest whether picking stocks is a, quote, dying busine. new points out that in poured more than $1.3 t into passive or index funds over the past three years. while, they pulled more a quarter trillion from acti managed funds. and judging from the percentage of funds that beat their index be

this is based on blackrock saying they estimate investors are holding trillions of dollars in cash.et your head around how much cash, $50 trillion is. these bars here show you the total gdp of these countries. that doesn't even add up to the $50 trillion in cash that investors -- that blackrock says investors are holding. the market close is up next. we are down across the board. four minutes to go. stay with us for that. this is bloomberg. ♪ . . . ♪ ♪ scarlet: we are moments away from the closing bell. "what'd you miss?" --markets were broadly steady as they digested comments from marquis o-dog eight -- mario draghi. i am scarlet fu. matt: i am matt miller. welcome to all our viewers tuning in live around the world on twitter. you can watch closing bell coverage on twitter every weekday from 4:00 to 5:00 eastern. scarlet: we begin with our market minute. u.s. stocks closed lower, although it was a marginal decline. you still have eight out of 11 major groups on the decline, with telecom the biggest la ggards. matt: take a look at the imap. you can see the industry groups broken dow

make aif anybody can titanic shift it is blackrock.t how hurricane matthew can affect fuel cargoes in the east u.s. east coast. ♪ >> oil is the future in focus and this is the map that tells you the story. this is hurricane matthew and it ts projected trajectory moving up to new york and washington. you can find this trajectory on your terminal. these yellow dots are tankers scattered all over the gulf of mexico as well as in the east coast. the areas you want to pay attention to our dcn new york. those crude tankers are potentially at risk. you have a lot of storage units all over the east coast that could be disrupted as well as in the bahamas. you have fuel cargo moving in it could be disrupted as well. 33 million barrels of oil storage in the bahamas could be shut in. let's turn to that trade. joining me is been within stein chtenstein. significant amount of that, always the short-term approach towards trading bringing components like that into play. there are some key areas we are watching in addition to the key components that we

i reference blackrock of course this morning also reported numbers.oney manager in existence, passes the $5 trillion under assets under management mark. >> passive versus the t-rows. >> eps 5.14, that was above some estimates. they did have operating income that was a bit lower than some had anticipated, but stock not -- it's actually doing quite well. >> stock is doing well. i regard them as -- guys, i'm not talking about f.a.n.g. time in back energy. people like buying f.a.n.g. no, stay focused. >> what's the point? >> did you go to fab, facebook, amazon, alba bet. >> i've got a scrabble board here. i've got a double word thing. triple letter, david, jazz. you know, jazz when you start to -- >> i'd say that's a lot of points. >> two zs. >> quiz is good. >> quiz is good also. >> we haven't done chipotle. ray jay comes to an underperform. they say the sales drop could be more permanent than they thought. stocks back below 400. >> 18 months from your last incident is when they turn. and we are -- the last incident was in december, so it is too early to

when blackrock synthesize -- and i know mr.e -- when you synthesize this election, do you -- kate: one of the things i was thinking about a moment ago is that november 9, the day after the election, all of these undercurrents, the disenfranchisement of the populist fears that are very present in the rhetoric of some candidates -- they do not go away. this something we will have to see, regardless of who wins the presidency. it is going to be a real challenge in 2007 and onwards. tom: i was thinking of you when mr. trump was in the debate, and we have a 1% economy. we will talk about this later in the hour. where does your gdp number go a year out, two years out, three years out? kevin: it stays right there bank at 2%. this is the -- it stays right there at 2%. this is the challenge. the fact that we are in a very low growth environment with a very low net for rate of interest and low productivity, that affects the stock market. if businesses are looking ahead and seeing slow gdp growth, slow nominal growth, where are the gains

mark: that was the portfolio of the $18.8 billion blackrock high yield bond fund, vonnie.till ahead -- a new investigation into the foreign exchange markets. at look at who the government is investigating now. this is bloomberg. ♪ mark: live from london and new york, i'm mark barton. vonnie: and i'm vonnie quinn. there's a new investigation into the manipulation of foreign exchange rates. this time u.s. authorities are investigating currency options desks at several brokers. this comes after a number of banks were prosecuted for colluding to manipulate rates. joining us now with the latest on this bloomberg is bloomberg executive editor for global legal financial regulations and enforcement. quite a title. >> a mouthful. vonnie: is this all coming out of the same original investigation? are we now into the broker, middle man portion of it? >> it's not exactly the same investigation. we know a new investigation was begun maybe about a year ago, and this is the new york attorney general. but it's in the general area behalf we've been looking at. this time, the emphasis is on

we will talk to blackrock. he is a former s&p governor.k to the italian finance minister. that set 2:00 in new york. ♪ this is bloomberg. ♪ tom: from washington, we are at the meetings. the city is jammed. everyone is focused on london. let's look at three-day sterling. the idea of rolling over, what time was it? --as in my beautyrest rid beautyrest. there were two reports of those pricing. that was the flash crash. is thedline this morning recent rollover in sterling, down to 12281. i got a 11841 off the flash crash area that francine: this has huge repercussions. let's get to the bloomberg business flash. taylor: they will sell their chemical unit two carlyle group. they will pay $3.2 billion for the business. the company sells chemicals and equipment. it part of their plan to divest assets over time. according to people familiar with the matter, the german bank is talking to security firms about raising capital. raise $5.6 billion. the justice department is demanding the bank pay $14 billion to resolve bond claims. snapchat is preparing

the blackrock strategist rupert harrison stays with us.rise to a post-brexit high on inflation wagers. this is bloomberg. ♪ francine: we just got news in the last couple of minutes that popolare- that banco -- this is after it fell more than 4.3%. the counterpart it is merging with was halted on the upside. you have two banks combining. a lot of people saying this may be an inflection point for the italian banking sector. you can see banca popolare di milano halted on the downside. let's get to the bloomberg business flash. nejra: deutsche bank is exploring shanking its u.s. occupations as lending expenses eat into firm capital. one person familiar with the matter said germany's biggest bank supervisory board discussed the business stateside at a recent meeting and the topic has come up in talks with u.s. authorities. a spokesman for deutsche bank declined to comment. casino shares have fallen after chinese authorities detained 18 employees of australians crown resort. the head of its international highroller operations was detained. index

the head of emerging market debt at blackrock is with us. welcome. >> thank you. >> make the case for emerging market debt. we have seen a lot of money piling in. why would i continue to buy more emerging market debt? >> a lot of people will make the case because there are few alternatives out there especially in a world where the fed will raise rates, so emerging markets stand out as the place where you can still expect a positive rate return and as well eventually to grab the coupon which is around 6%. if you want, i can give you the landscape for that. we're moving from monetary stimulus to fiscal stimulus. fiscal stimulus stock, put it this way. what does that mean? for fixed income investors rates will go higher either way. either you get the duration tantrum because central banks don't control the way going up, or they manage it very well and emerging markets would have positive return there. on the duration tantrum we're concerned because there is monetary policy convergence where all central banks are pointing to the exit door. commu

blackrock bought bgi. like those blackrock deals. out $110 million of incentives. a lot behind you.roduct. >> the price war has been going. they all use the same indexes. they never had the lowest fees. it is like getting a mercedes for the price of a toyota. we think the shares will be a strong competitor. we call it a land grab. are going to give a lot of challenges to vanguard, the assets.f going down with efficiencies. there is not price and pressure everywhere. we are talking about u.s. retail. alternative manager, they have been raising their fees and some of their best products. you can charge whatever you want. they are actually raising the seas. fees.sing the jon: great to have you with us. thank you very much. speaking of asset managers and low returns, coming up on bloomberg markets, chris will weigh in. is at 10:30 eastern. up next, the final presidential debate. strategy.ok at the that is up next. florham boom -- from new york, this is bloomberg. ♪ >> we will see donald trump face hillary clinton for a third and final time. our political, reporter from lost vegas. there

blackrock.wn blackrock asset management. >> that's the problem in the financial world. >> way to hang with me. you got a final trade? >> we doing final trades now? >> what do you think we're doing? >> let's look at the refiners. these things are still going higher. it is really flying in the face of margins as well. maybe what the market is telling us is that margins are getting better and none of us know it. marathon petroleum is my top pick in that space. i think they have the best geographic coverage. i like the refiners here and marathon petroleum. >> quick on the refiners, a lot of it -- fundamentally, refiners, the story can change when you have something introduced like a hurricane. you will see a lot of shut-ins. >> by the way, oil is threatening $50 again. >> oil is threatening $50. >> how do you play that? >> pete talked yesterday, he had unusual activity in halliburton. i'm playing it through sum b schlumberger. i like the bigger type names. i don't know if you want the beta type name

. >>> blackrock announcing it's cutting fees on its etf.that could be more competitive with vanguard and state street. >> certainly investors will take advantage of lower fees. we're joined by the blackrock ceo. >> apparently sara remembers that day. it was just over a year ago that we launched our product. >> into a very competitive market. everybody has etfs now, right? >> it is a very competitive market and obviously it's evolved over the almost last 25 years. really over the last 10 years, it started to evolve with players like ourselves, goldman sachs asset management, who wanted to offer the etf wrapper, if you will, like any other product. >> your etfs are what would be called smart data, fun factors or some other weighing etiology that is trying to perform. that market is also a quarter of a trillion dollars. how do you stand out there? >> indeed, mike, in fact, that's an area we've sign leen a lot o growth in just the last year. we've seen over a billion and a half of inflows just in our products over the last year. really, i think

blackrock, it's not just low volatility, it's risk mitigation.n is you throw some diversity in there as well. it's not that much of an issue that we have some momentum looking shares, but 33% is a lot, so i mean it might be just kind of a strange dislocation that is happening at this moment. scarlet: when do they change out the numbers? dani: twice a year, may and november. we may see the wild moving stocks that they've been moving a whole lot and changing averages. the it might fall out of the risk construction and no longer be in the portfolio. oliver: great stuff. it's one of the most interesting stories in the equity market. that is dani burger. scarlet: the first word news this afternoon. mark crumpton has more from our newsroom. mark: breaking news at this hour. authorities say two firefighters and two civilians have been injured in a powerful explosion that shook a northwest portland, oregon neighborhood. you're looking at live pictures on your screen. the blast reportedly occurred as utility workers were repairing a damaged gas line. fire

. >> does blackrock bleach the federal reserve will raise interest rates in december? >> well, there's a 50% chance and what janet yellen is looking at, the jobs. >> does blackrock think it's a good idea to raise interest the process of raising rates. it's hard for people to live off of the incomes they have today with the higher tli er cost of . if you look at where short-term rates are, this changes people's lives. in a sense, it's a self-tax on the future. they need higher interest rates so that the money that they have deposited in banks or in money market funds gives them some income so that they can take that income, pay down their over to invest in the future. >> thank you, rob. >> we always like it when you come up to the table. >> a pleasure. >> thank you very much. >>> restaurants in the nation's capital are about to get some international recognition. ahead, and first on "cbs this morning," jan crawford finds out what it takes for restaurants to earn a coveted michelin star. >>> good morning to you. we are starting off with sunshine, a live picture from shaw

blackrock belies that low-cost funds will be a bigger staple within retirement accounts in the yea.se of new rules from the white hoe tha req brokers to put the interest of savers ahead of their own. >>> well, you probably know this, but you're paying a lot more in atm fees. according to bank rate, the average fee for using an out of network cash machine is now $4.57. th the highest rate in ten years. rate also found that phoenix had had the highest atm fee at $5.07. san francio the lowest at $3.90. >>> chicago city council is suspending wells o for one year. that ban includes bond underwritie and trustee servi that the bank provides to that city. wells fargo h earned about $20 million in fees from chicago, from the year 2005. but the decision comes in the wake of the fake account scandal, and it follows similar moves from the treasurers of illinois and according to "usa today," warren buffet the largest shareholde has lost roughly $3 billion on his holdings in the bank since that scandal intensifie last month. >> federal regulators issuing new rules for the fast-growing prepaid de

blackrock is making an effort to be the low cost provider right now.lot to do with the department of labor regulations about being a fiduciary. remember, these products are essentially the same. there's not a lot of difference between them. it's also a fight for the biggest slice of the pie. blackrock is the biggest provider out there, but they're in a huge fight with vanguard, state street, invesco and even charles schwab. fight of the titans now, dow up 90 points. >> bob, thank you very much. bob pisani. let's get to the bond pits as well, rick santelli at the cme in chicago. good morning, rick. >> good morning, carl. you know, when we were kids we played the game look at a picture of six things and one thing doesn't fit in. maybe that one thing right now is the relationship of sovereigns, global sovereigns, and maybe their currency. which means adjustments are afoot, and that truly is the case. look at auger 1st staugen augus, didn't driven by the very short end, it's the entire curve on the long end particularly. look at one-week of 10s moving high

blackrock owns 3.67% of outstanding shares. paramount services supreme universal.re holding vehicles for the royal family. these are the top holders of deutsche bank stock. some say would be to increase control according to people familiar with the matter. continuing over its handling of residential mortgage-backed security's according to people familiar with the matter. these shares are up by 4.8% today. the investor who became chairman of this company is increasing his stake which owns the universal music group from 15%. the billionaire investor wants to cement his control. he wants to expand his business beyond music. this is a weekly move in sterling against the dollar. you can see the last week the pound had its biggest acquiring since the brexit week. you have seen big moves in sterling. of the biggest moves since the height of the financial crisis in 2008. the concern is we are heading for a pound -- hard brexit and the pound is falling. how low does sterling go? wenie: that is a question will be speculating over for some time. bond marketu.s. the is closed.

we talked to bill gross this .orning an update on how blackrock since his financial society,n across particularly european society. >> i do think it is particularly useful to talk about financial repression. we have heightened uncertainty, not least around politics, and excess savings and high debt levels. what you have creates an environment where investment is not happening the way it should. tom: this is critical. you lived this. are you worried about capital flows in the coming years forabilizing europe and, that matter, the g7 system? >> the normalization process will be difficult, but it is a high-class problem. we all want to see normalization. will there be some volatility when that happens? undoubtedly, but the most important thing is how we get confidence back in a system where you have an enormous amount of political uncertainty, and adding to it every a in some cases, and where you have high debt levels. that is not a conducive environment for investing. we have to tackle these things at the source. >> but if you feel like we are reaching the limits of monetary policy, ho

riedertill with us, rick from blackrock. you have the banks and ecb.week on the speculation that perhaps the ecb could pare back bond buying. is that backup in yields now over? rick: no. i don't think they are tapering. i don't think that is the discussion they are having today about what the next move is. the discussion is two things. one, they are running out of bonds. what sort of flexibility can they get to continue the program and how far do you extend it? i think that is the discussion. as jonathan was alluding to before, what the bank of japan is doing, not pressing further a negative rates, letting the yield curve steep and out -- steepen out. the ecb will not press further on negative rates. realization, banks cannot build net interest margin, cannot build capital and cannot that some velocity does not increase on the backside of it. further youes, the get into negative, it does not increase velocity. it is clearly hurting the banking system and insurance industry. the discussion today is how long do you continue the purchase -- atm and i you

hildebrandt from blackrock. it was less about brexit and the united kingdom, or for that matter greece, and much more about who is the adult in the room for europe. francine: i think a lot of the chat was actually looking forward to your presidential debate. a lot of people were asking questions, even certain governors that shall remain unnamed, who were asking what a donald trump presidency would mean for stocks across the world. we also had to of course talk about deutsche bank. tom: i note mexican peso this morning over the weekend -- not just the debate, but the news flow and outrage over the weekend -- clearly, a stronger peso signals a better monday for secretary clinton than mr. trump. with that said, we will see how the poll's out in a second debate. we go to a third debate october 19, i believe. on deutsche bank, a pullback well within the range this morning. on "surveillance" on morning the news flow out of deutsche bank. it is up in the air. francine: and certainly the stock is not liking it at all. w

you will be dwarfed by blackrock and fidelity. >> the combination gives us resources and economy of scale. we're not trying to be black rock or a huge one. the additional scale of $300 billion of assets under management allows us the opportunity to capture more benefit and opportunities for shareholders and build out our business around the world. >> does management have a role to play in this combined company? >> there is no star manager or a lone wolf. they are a combination of ids being generated by people in the firm. being able to collectively grab that through a collaborative approach. that is the future of active asset management. what is held by henderson and janus capital, going forward. >> the pound has fallen to a 31-year low as their could be a hard brexit. how much lower could we go? >> it will be a bumpy ride, guy. i think you are right. investors are looking at the hard brexit scenario and being spooked. we have had decent data recently. yesterday's manufacturing pmi data was better than expected. investors are looking past that as the brexit becomes more of a reality. >> w

we are not trying to be blackrock, but the additional scale of $300 billion of assets under management allows us the opportunity to capture benefit and earnings per share holders, and to make appropriate investments to build out our business around the world. >> is their role to play in the combined company? >> there is such thing as a store manager or lone wolf. they are a combination of ids being generated by people in the firm. they will wrap that through a collaborative approach. active the future of asset management held by henderson and janus capital. and what we will see going forward. fallen to a has 31-year low as their could be a hard brexit. how much lower could we go? guy. will be a bumpy ride, investors are looking at the hard brexit scenario and being spooked. we have had decent data recently . yesterday's manufacturing pmi data was better than expected. investors are looking beyond that as the brexit becomes more of a reality. >> what about the euro-pound trade? >> that is important to note. dollar'sanding the strength, this drilling has pushed higher. the pound has stre

. >> that was blackrock's heidi richardson. >> time now over a look at some of the biggest business storiesn the news -- for a look at some of the biggest business stories in the news. deutsche bank agreed last friday on a 3% of extra yield above benchmark rate. a $3 billion private sale of unsecured bonds that nearly from augustspread of 2015. duke energy agreed to sell its brazilian assets to china. the price? $1.2 billion. duke is also negotiating to sell its remaining holdings in central and south america. the company previously said it's $4.9 billion purchase of piedmont will accelerate its shift away from holt. of an acquisition of twitter appears to have waned. google, salesforce, and disney among the big names. those suitors unlikely to make an offer now according to people familiar with the matter. that is your bloomberg business flash update. julie: i just wanted to mention in regards to that last story, according to a headline from reuters, salesforce is said to bid for twitter. a little bit of a leg down, but it still seems like there is a .ittle bit of skepticism joe: if we go

fromamsung galaxy note -- blackrock, thank you so much.alaxy note 7 getting more attention. this is bloomberg. ♪ ♪ david: you are watching "bloomberg markets." time for the bloomberg business flash. saudi arabia will meet for -- meet with investors for a potential bond sale. they will conduct meetings in london, boston, and new york starting on wednesday. they will sell benchmark bonds that mature in 5, 10, and 30 years. central europe's biggest oil and gas industry has received it by force turkish retailer. private equity firms are also month the companies that made offers. bp and ramco are also weighing bids. it is tied at about $1.2 billion. twitter shares are falling today after interest in a potential acquisition appears to have waned. google's sales force and disney were among the big names that consulted with angst whether or not to pursue a bid. the suitors are unlikely to make offers now. that is according to folks familiar with the matter. that is your business flash update. samsung is halting reduction of its note 7 smartphone.

we also have third-quarter earnings from blackrock. we'll so have inflation data out of the u.s.reet closes, we get numbers from intel and yahoo!. guy: let us talk about one of the big stock stories of the morning. ryan air. saying that the decline in sterling is to blame for weighing on their profit. easyjet is the second worst performer on the ftse 100 since the referenda down more than 4%. chris jasper is here. my sense this morning is that these could be worse. chris: there is a little bit of relief. the stock started out 3% plus down and now is in positive territory. that is no bad going. ryan air came late. took their time. they have come out with a mild.g that is there is some relief although at the same time, they did caution that there may be more to come. ryan in itself said that if sterling deteriorates further and pricing softens more, they make walk it back again. ripple effectthe through the sector. iag is the most beat up on the news coming from ryan in. there is a read across to the iag. at the same time, there may be some nervousness out there regarding iag and l

goldman sachs and blackrock and regent financial trading higher.oldman sachs earnings really stand out. a lot of the strength is driven by fixed income strength come up 49% on a year-over-year basis. on pace to close at an all-time high. one potential catalyst for alphabet trading higher today could be the new smartphone. pixel is receiving lots of praise. alphabet trading nicely higher come on record the big winner is netflix. shares are trading at levels last seen in december 2015, absolutely surging for the best day in more than three euros. netflix put up a great third quarter. subscribers growth -- numbers come i should say, beat estimates. they get better guidance for the third quarter than was expected. and big praise for david miller. he initiated on the stock two weeks ago with a buy rating, saying this is what he expected. to try yesterday that was a little bit more bearish. we want to look at it today to see what it looks like. perhaps we should have given it more fair treatment to it. we do see that this is netflix caught in his long-te

caroline: you have the likes of blackrock, another big older.e understand that investors have been approached, new ones and old ones, but they are trying to gather enough demand out there. remember, some legal 5percussions here, $ billion euros is a liquid go to the market for. so, they would have to get the backing, but we do understand there are tentative negotiations going on to make sure demand would be there. it was reported thatis lo if the u.s. fine was monumental and pushed deutsche bank into a crisis, they would be there to buy up some of its shares. so, a sign of support coming from germany for the lending banks. but will they get a number from the doj? john cryan is in washington. will he talk to the department of justice today. ? then, there are concerns in russia related to money laundering as well. anna: thank you very much, caroline. she is the in frankfurt, watching that story. geoffrey yu is still with us in teh studio. -- in the studio. when you look at the threats hanging over the european banking sector, the late rate environ

so you look at some of the bigger ones, blackrock, t row and janice, all have had a tough time.are coming in. the other thing that we have underscored on this show is that when the money comes out of the hedge funds and goes into this passive, you no longer have those short positions that hedge funds typically have to cushion the blow on the down side. they're not covering on down day. so i think that's what nick is talking about where you can get these accelerated moves, because there's no short position to be covered. >> should i be scared? i'm sitting at home, i've got my portfolio. should i be scared? >> no. no one is scared. just buy the dip, right? so, listen -- >> being sarcastic, viewers. >> my take-away about this whole conversation, goes back to the banks. there is a bigger headwind for banks that have asset management, is there a large part of the revenues. fees are going down. when you think about it, etfs, whatever the vehicles are, fees are getting compressed, so guys who charge the fattest fees -- >> wouldn't assets in that part of the world go up. if that's the o

and two hours later, we get the earnings from blackrock.anus: followed an hour later by goldman sachs numbers and we get inflation data out on the u.s. anna: after wall street closes, we have numbers from yahoo!. coming up. manus: the rba forecast reasonable growth as the mining headwinds are seen waning. anna: netflix, shares soar. crushing slow down fears. of the trade. we ask a former trade negotiator how british diplomats should negotiate new deals post-brexit. this is bloomberg. ♪ anna: a live shot of tokyo for you this afternoon. japan, and itr in is 6:19 a.m. here in london. a little movement this morning in the u.s. dollar. mark swartz, the asia-pacific chairman of goldman an advisor to the firm. he has worked for the firm for 27 years. he will become a senior director. goldman sachs will release their afternoon.is ibm has said profit margins shrank for the fourth quarter in a row missing analysts estimates. operating growth, profit margin was 40%, down 2.1 percentage points from the same timeframe earlier. is changing to more subsc

matt: last month, blackrock said it saw $15 trillion in cash sitting on the sidelines. what is leading to complacency? daybreak, theris, th question was posed. been,e of the issues have a lot of uncertainty whether it is the elections or different policy decisions. when you look at fixed income rates around the world, the cost of not buying into a 10 year german bond is not that high relative to cash. i think that is part of the reason why investors sit on cash to gett for expectations better opportunity. that being said, it is this prolonged. of time. the negative advertising relative difficult work 5-6%. you compound that year after year, and it is a risk to sit there. we think there are a lot of opportunities in the market. >> we will talk about where. earnings were just coming in at about 2.3% for the third quarter. leverage is so high. do you feel that fundamentally earnings are strong enough to support this kind of leverage that we are seeing jekyll >? >> if you look at leverage over the last 15 years, it is very different. you had riskier companies that were putt