we are very pleased to be here representing blackrock, blackrock employees and business partners in making this presentation today. >> that is great. tell me what $75,000 can do. >> this is a lot of money. our clients are counting on the food bank for their meals they want to know that we will be there for them. we know the blackrock will be there for us. employee volunteers, they are there for us year-round. >> tell me about some of that. it is not only the money but your employees volunteer. >> we do. we have a very active volunteer program. we are regular attendees at the food bank events. i think that is an important thing. the food bank turns every dollar it receives in donations into five dollars worth of food. one way of doing that is through volunteer efforts. we like to support it everywhere we can. >> i wanted to get over to you guys were quick. this is great.>> it is fantastic. we are thrilled to be here and continue our partnership with the food bank.>> thank you so much for bringing this check in. paul, it has been great. tell me about the need for the holidays real quick.>> w

had of theis institutions group at blackrock.re he in the gulf region visiting some of the most important clients. what have you learned? >> i guess the principal thing is the investors in the changes in washington. -- is investors in the region are welcoming the changes in washington. detractors are projecting their greatest fears, and there is an interplay between the fears and the hopes. surprisingly, there have been more people that are hopeful fiscal, whicht to blackrock has been calling for. the lessening of the reliance on monetary policies globally. there is broad optimism. erik: does the optimism surprise you? if you were to sample opinions in new york city or san francisco, you might not come to a similar point of view. terry: no, you would not. i find it surprising, i would say, that international investors, those looking at the united states, seem willing to be supporters or give the incoming administration the e doubt withha regard to changes. that is not what is being felt at home. heard the same thing in saudi arab

blackrock has done a great deal of work on the infrastructure public-private partnership.rastructure is one of the more attractive classes from both a global macro standpoint and an investor standpoint. reporter: you expect to see flows out of public markets and into private investments such as infrastructure or commercial real estate? >> i already have. commercial real estate is a? mark.on if you purchase a lease on a building, effectively making up 2% or 4% yields and those risk-free rates are going back to 1.5, too, that commercial real estate is overvalued. not every single asset class should be treated similarly. private equity, infrastructure -- there is more promise. reporter: again speaking of the sovereign wealth funds in this region, flows out of public markets into private equity into infrastructure. but within public markets, will those assets moved out of active vehicles and into passive? >> i think the passive/active debate is interesting and important. i think there is a clear case to be made to pay that from passive to active in the environment we're going

kate moore is with blackrock, $5 trillion in assets. so they know a thing or two about buying. good to see you again. >> >> good to be here. >> we are having this debate on the financials right here on this desk. what about this notion about them being underowned? does that hold true and by what measure? >> look, i actually tend to agree with that. i have great sympathy with the statement that financials may be overbought in the year term but are actually fundamentally underowned. i think the rotation within the equity market, particularly into banks, was happening far before the u.s. election. and we just saw the u.s. election as an accelerant for the stocks. but from a macro perspective, we were already in very good shape. we believe in the reflation and growth story from a fundamentals perspective, you can't argue with the strength of the big balance sheets. valuations, even after this rally, multiples are only up a point and a half. and i agree, as i said before, with the point that sentiment is not overly bullish on banks. there's a disconnect between what people say and w

blackrock has just published its global investment outlook for 2017.ith me is philipp hildebrand, the chairman. thank you for sticking around. we talked a little bit about monetary policy before. is the only thing we can say with certainty that we will see [indiscernible] recoverywe are in a phase coming from extreme interest rate levels. we have a lot of policy uncertainty. all of that combined sets you up for surprises. and therefore volatility. francine: are we looking at trade wars? philipp: i don't think so. that is obviously one of the big risks. that could offset some of the stimulus measures that are likely going to come into the system. but one has to hope that can be avoided, as that would in a sense neutralize any positive effects. francine: we have seen a huge rotation from bonds into equities over the last month and a half. this is largely on the expectation of donald trump being able to reflate the economy. we were looking at a trend that started a little bit before. but does that continue in 2017? philipp: i think it does. i think it is

blackrock has done a great deal of work on the infrastructure public-private partnership.ructure is one of the more attractive asset classes from both a global macro standpoint as well as an investor standpoint. erik: do you expect to see flows out of public markets and into private investments, such as, say, infrastructure or commercial real estate? >> it already has. commercial real estate is a mark.on they had long operated like long-term fixed income investments. making a 4% yield and the risk-free rates are going back 1.5, that commercial rate is overvalued. not every year -- not every single asset class in that old space should be treated similarly. erik: so more flows -- again, speaking of the sovereign funds, particularly in this region, flows at a public markets and to private equity, into infrastructure. but then within public markets. will those assets move out of active vehicles ended to passive? /passivenk the active debate is important right now. there is a clear case to pivot from passive to active in the environment we are moving into. been of sectors that

kate moore with us from blackrock.-read" and folders into finance and investment. the u.s. is a low tax nation. tom: this is an extraordinary thing. forget about the corporate tax debate for a minute. relative to other nations, we keep our investment gains pretty well. the reduction of the dividend tax was a big deal. kate: the big complaint people should have with taxes is very complicated. -- is that it is very complicated. simplifying it is something we can agree on, but it does not feel that our tax rates are onerous compared to other countries. tom: tell us about investment sentence -- tell us about investment sentence -- tell us about investment incentives with that. kate: when i'm thinking about the tax policy -- this is "surveillance." two people who do not know what they are talking about, nailing it on a tuesday morning. kate: i am focused on repatriation and the one time tax for cash held overseas. people have gotten extremely enthusiastic and set all of this money will come back and lead to investment or bu

and kate moore, chief equity strategist at blackrock. welcome to both of you.andy, let me begin by asking you, in ms. yellen's comment there, she talked about the changes that may well be coming in fiscal policy over the next year or so. take me inside the deliberations of the fed. how much will the conversation over the next year be sort of determined by what's going on on capitol hill and between congress and the white house on tax cuts and infrastructure spending? >> i think they're going to focus a lot on that. because over the last year, we really haven't had much change in policy at all. and there's a prospect for some significant tax reductions, also a more internationally competitive tax system that will bring some of that $2 trillion that happened offshore on shore. some regulatory relief, and some more spending. if you put all those pieces together, and actually can get a package together that is really pro growth, productivity-enhancing quickly, that could significantly increase demand for labor, could push up wages, and push up prices. so they're go

still with us, michael from blackrock international.e need to figure out where we will be spending our time. standing on a rooftop in athens as we watch what is going on in greece where will it be in italy? where is the flashpoint in europe? >> you need to be pretty diversified when you talk about thehpoints since we have french elections and the german elections and we have italy. while the french and german elections are huge events, i the majorityk that outcome is relatively market friendly. in germany, there is still a high probability that angela merkel will lead the next government, although it may be a different coalition. in france, i think it is likely that marine le pen loses the second round. italy is more of a wildcard because there have been different views on the banking sector. on the other side, you have talk about another referendum to potentially roll back some of the labor reform. it is still unclear when we have the next election. from my perspective, italy is the one to watch for next year. i am less certain on the

the blackrock cio of fixed income tells us what it means for the market in the fed this hour. italy's referendum approaches. on the topic of the global economy, a wide-ranging conversation with imf chief christine lagarde. all right, let's have a look where european equities are trading right now. 30 minutes to the close of equity trading. we are seeing downward pressure on european stocks. broad-based losses. you can see a lot of red in the picture. weakness,en seeing although the ftse men index -- mib indexes on track for its best performance. a little pullback out of the jobs report. the euro pretty much unchanged. in the fixed income space, you are seeing yields coming down both in the core and the periphery. germany's 10 year yield down 8 basis points. yesterday was the worst day for tenure balloons -- 10 year bunds for quite some time. we are seeing a little bit of pressure on nestlÉ in the commodity space. brent crude holding up, headed for its best week since 2009. a lot of focus on the italian referendum. i want to show you what investors have been doing to hedge. opt

blackrock said etf's are replacing futures and swaps because investment ranks are shrinking.t an interesting comment. a earthshaking. etf's are thought of as replacing mutual funds. they will take into a 50 billion dollars this year. active mutual funds will only lose 200 billion dollars, maybe $250 billion. they will trade $20 trillion this year, one third of all doesy trading or where this money and volume come from? big institutions used use features and swaps to do things to manage their portfolio, to adjust or equity ties cash. now they are using etf's. the regulations have eight banks less interested in holding risk on their balance sheets. etf's have told him a lot of when investment banks used to do. this is an open session of how pervasive etf's can go in this area. this is different from their penetration into the retail mutual fund market. julie: is this because etf's are more liquid? take the futures contract for s&p, there will be times when rolling your futures contract will be more expensive than the four or five basis points in the etf. the liquidity of etf's

he ran funds including the blackrock u.k. dynamic fund and the blackrock u.k. absolute alpha fund, once overseeing as much as $2.5 billion. in germany, manhunt is underway at this hour. authorities are said to be looking for a tunisian man who is wanted in the truck attack that killed 12 people and wounded dozens at a berlin christmas market. german media can without identifying their sources, reported the unidentified suspect documents were found inside the truck, and "the washington post" citing a senior official says he is an asylum seeker. but the german interior minister will not confirm nor deny details published in german media. authorities in mexico have not yet said what may have caused an explosion at a fireworks market that killed at least 29 people and injured another 72. the market was bustling with shoppers went the powerful chain reaction explosion ripped through its stalls. some of the injured have been burned over 90% of their bodies. syrian tv says aleppo evacuations have resumed, allowing rebels to begin final withdrawal from the war-ravaged

wisdomtree was down sharply, along with blackrock. >> when carl speaks, things happen.ere were a lot of etfs out there that are high volume, that are very liquid, that you may not worry about. when he says you don't know what you're buying, you really do know what you're buying. it's not that hard to figure out. the etf has the list of stocks incorporated. i hear what he's saying, there are now 1600 etfs out there, 20 years ago there were 30 of them. maybe there are too many. but i don't think there's an inherent danger with the majority of these instruments. >> love carl, he loves our show. but the etf dangers for investors right now are, if anything, people are probably finding overlap between etfs they own. we could do a whole show about this etf thing. the bottom line is, i actually think the etfs have worked particularly well in a bull market. that's the bigger issue. it's the passivity. i know i sound like a guy from a hedge fund. >> this is a time when correlations have been very low. >> until they're not. >> right. until they're not. is this the time -- >> i thi

richard turnill still with us from blackrock. pricing in the reflation trade, not the protectionist risk, or are they, and should they be pricing this in greater? edward talks about a cold war influence kind of world. richard: the market is pricing in the reflation trade when you look at u.s. equities, small cap domestic u.s. equities, they've rallied very strongly since the election. the markets interpret this as the best possible outcome. reflationfied the trade that was already in place before the election. where i disagree is, if you look at emerging markets, where the market is pricing in very significant risk premiums around protectionism, around trade -- guy: around protectionism or around the dollar? where does the risk lie? richard: i think they all go together. protectionism leads to capital flows back into the u.s. that all goes together. i look at the risk premium. as an investor buying into emerging-market equities, emerging-market bonds, and currencies, that risk premium, that additional premium, is now back to attr

are some of the big wealthy firms preparing for what's to come after the migration joining us now blackrockeider. we are looking for 2017 to be higher interest rates and higher growth. is that your forecast as well? >> yeah i think it is. you are starting to watch it play out where the anticipation of people talking about fiscal and infrastructure and that will come however markets are going to start to price in and attacks influences are significant. we talk about marrying corporate tax and versatile texan repatriation. we have lived in a world the last two or three years has been borrowed by factors back. you're going to change the attack shows in terms of the benefit you get from borrowing and the cost of the debt is going up so what happens companies have invested their business and grow their market share. it's pretty exciting stuff and this is quite frankly for being in the markets as opposed to two years of september and december, now you have divergence and now you have enthusiasm and quite frankly you are seeing companies surveys improved and personal confidence surveys improved so

. >> the members of the panel include the ceos of general motors, jpmorgan, blackrock, disney, walmarta former boeing ceo, ibm's chief executive, and the former ceo of general electric. but if you do notice, there is no one on the list specifically from silicon valley. the first meeting will take place in february. >>> the president-elect's deal with carrier to keep 1,000 jobs from going to mexico is drawing divided reaction. and some of the most negative responses have come from south of the border. michelle caruso cabrera reports tonight from monterey, mexico. >> reporter: there are 3,000 carrier employees in mexico already. that number was supposed to rise to 5,000, but following the deal with president-elect donald trump, that's not going to happen. instead, the number will rise to only 4,000. garcia's job is to attract as much foreign investment as possible to the region. he's worried about donald trump. >> this is -- the president-elect trump has made a lot of declarations that i think nobody believes that he serious on his actions. mr. president trump. >> there are many u.s. man

joining nous is rick rieder from blackrock.ne, but he manages so much money that i'm surprised you're not -- your shoulders aren't hunched. do you sleep at all? >> so, you know what? this is a more fun environment. i think you're point is right. i think the fed could have gone june 14 is when we think they could have started going. >> hold that thought. i'm going to introduce jason trenert as well. rick, i don't know if you agree with this. lead editorial, the center of "the wall street journal," seems to think new policies none of these things are going to work unless it's a big infrastructure. they say the current fed governors and staff are so steeped in keynesian models they don't see it. so their forecasts have been why would we care what they say. do they have this wrong? do they just want -- >> i think there are multipliers from taxes. if you take personal tax, corporate tax, repatriation, you merge them all together, we've run the numbers. if you got 100 basis increase in the mortgage rate but cut in personal tax, you e

our guest host this morning is kate moore, blackrock chief equity strategist.ying to -- the two of us together -- help andrew -- >> with his personal finances. >> thanks. >> he's young. he's got a lot of time left to try to do things. he seems to be, pushing back on mutual funds. >> i'm not pushing back. >> okay. >> i'm just wondering whether there's more, greed. >> whether or not there's opportunity in private markets. i think that was part of it. >> is there -- do you need -- i told him to keep it simple. >> keep it simple. some etfs. >> i think a well balanced portfolio needs to have active etf. probably some private stuff. we visit every quarter. our expectations for the next five years, you're going to get 3% to 5% or 4% to 6% on large cap equities. >> that including the dividend? >> that's including the dividend. >> that's horrible. we got to do better than that. >> if we have a lot of juice in the next year because we have corporate taxes and everyone can mark up the earnings. we're talking about a five-year cycle. and the chances are that we will go thr

blackrock has done work on the infrastructure of public private partnership.structure is one of the more attractive asset classes. flowsyou expect to see out of public markets and into private investment such as infrastructure? >> and already has. >> that has been happening. >> commercial real estate is a question mark. as long-termerated fixed income investments. if you purchased a lease on a building making a yield and those rates are going back to 1.5, that commercial real estate is overvalued. not every single asset class should be treated similarly. private equity infrastructure, more promises. >> speaking of these sovereign wealth funds, flows out of public markets, but then within public markets. intothose assets move passive vehicles? >> the debate is interesting and important one. there is a clear case to be made to pivot from passive to active in the environment that we are going into. curve,eping of the yield a lot of sectors that have been long despised are suddenly being loved. deutsche bank stock up 10% i heard. there is a belief not just for u.s

managing director russ koesterich, head of asset allocation for blackrock's global allocation fund. good to talk to you again. good morning. >> good morning. >> how should we be thinking about the rally and any pauses in that rally like we're seeing today? >> well, i think this is a natural pause. you don't really have anything keeping the market down. it's just worth keeping in mind stocks have moved very far very fast and moved against the background of higher rates, stronger dollar and the market is generally strong. need to pause. i think at some point in the next few days or week or so we're going to break 20,000. >> why do you think that's the case? why is this not the top just below? >> well, look, you've got still a lot of market momentum. you had people come into this rally that were very understood al -- underallocated. still a reasonable amount of cash and we're in an environment where people are getting more nervous about bonds, which has not been the case for some time, that indicates to me there's a very big rotation out of bonds, to some extent out of cash by constitu

mark: we will focus on this next blackrock manager story.dy and its fight against insider trading. we have liquidity drying up, concerns mounting it is going to fail to raise enough capital by the year end deadline. spanish banks losing the mortgage interest payments. estimateseries italian banks need an injection of around 40 billion euros. can they year and rally last with only a few days left in 2016? a busy show. we will see you in nine minutes. jon: that is coming up. on this program, the bulls are on parade. are some of wall street's top strategists getting ahead of themselves? from new york. this is bloomberg. ♪ david: this is bloomberg. for the third year in a row, every strategist surveyed by is buerg is polish -- llish. right, you can see the spread between the highest and the lowest predictions is the narrowest it has been in history. back toata we have goes 2007. it is 200 points. what you see between the furthest to the left and the orange line, this is pretty rare. everyone is in consensus here. they are accepting -- expecting

. >> blackrock and vanguard are taking in the money. it has become a two horse race.: good stuff, eric. vonnie, back to you. vonnie: abigail doolittle, thank you for that. still ahead, a former adviser to president elect donald trump tells is why the u.s. should repair ties with russia. right now, the dow is up 54 points. up a 10th of a percent. 103.ollar index above this is bloomberg. ♪ . . vonnie: live from bloomberg headquarters, i'm vonnie quinn. nejra: i'm nejra cehic, this is "bloomberg markets." has more from the newsroom in new york. orsa: european bailout out say they have significant concerns about greece. critics say the prime minister is pushing through expected social programs, that's threatening the bailout that cap -- that cap greece in the european area. merkel says greece has had her support, although she says decisions will be made by others. >> i want to say this isn't the place where decisions will be made. this is in the good hands of the three institutions of the eurogroup. certainly, it will play a role in our talks and how the greek prime minis

we'll have rick reiter from blackrock here, doug shield to talk about equities.ighlight of the show is we'll have someone named wilfred frost talking about the banks? i have not heard of him, apparently he gets high marks. >> that's right. sadly not from the nsye. >> we are looking forward to it. see you in a bit. >> "squawk box" in ten minutes time. >>> still to come on "worldwide exchange," global markets reacting to the hike. the dollar index soaring to 14-year highs. we'll discuss that and much more when "worldwide exchange" comes right back. >>> the fed surprising the markets by forecasting three interest rate hikes next year, and that number could increase once donald trump takes over. joining us now is bruce kazman. yesterday quite a sharp move in the dollar and in bond yields. was that somewhat of a surprise given how well forecasted this 25 basis point hike was? >> the 25 basis point hike was well forecasted. i think the fed did give us a surprise. it made a move towards guiding us towards three rate hikes next year. there was a broad move among members

blackrock's chief equity strategist for the americas. i would just do one or the other.th and south is too much for me to think about. she can handle both. then elarian is on. he will help us look around corners at multi speed economies in the new normal. the new normal. he's a walking mckenzie buzzword phenomenon. >> he creates them. >> he creates them. so there are four things. >> that means for at least an hour, you will stop making fun of my accent and make fun of his. >> there's some similarities there. i'll see how he says twitter. >> you did that when we were sitting next to each other on "squawk box." >> a lot of my stuff is not new. >> unlike the new normal. joe, thank you very much. >> thank you. >> looking forward to "squawk box" coming up in nine minutes time. >>> still to come, 2017 market predictions from michael purves. >>> first we've been asking all morning what is the biggest market surprise of 2016? cameron deacon responding saying the speed in which the u.s. rallied after trump was elected due to the shock factor. yes, i agree. he says i thought we we

are some of the big wealthy firms preparing for what's to come after the migration joining us now blackrockoking for 2017 to be higher interest rates and higher growth. is that your forecast as well? >> yeah i think it is. you are starting to watch it play out where the anticipation of people talking about fiscal and infrastructure and that will come however markets are going to start to price in and attacks influences are significant. we talk about marrying corporate tax and versatile texan repatriation. we have lived in a world the last two or three years has been borrowed by factors back. you're going to change the attack shows in terms of the benefit you get from borrowing and the cost of the debt is going up so what happens companies have invested their business and grow their market share. it's pretty exciting stuff and this is quite frankly for being in the markets as opposed to two years of september and december, now you have divergence and now you have enthusiasm and quite frankly you are seeing companies surveys improved and personal confidence surveys improved so that translates

thank you, blackrock and their ishares. the yellow circle is the beginning of the crisis. lehman low with price down, yield higher. then we show on the right the equivalent bond rout. we are getting to a percent change move in price, a percent change move in price that is beginning to approximate what we saw in early 2009. we have so much to talk about this morning, including francine, in italy. we are thrilled to bring you of theartin feldstein national bureau of economic research and of course at harvard university. there is a point where the markets take over and tell people like you what to do. are we at a point where the bond vigilantes can give chair yellen guidance? bond vigilantes are finally showing themselves. whenever i have been on this program for the last two years, i said those long-term interest rates are just unsustainably low. they are the result of monetary policy, but at some point it is going to turn and we are going to see a normalization of long-term rates. tom: let me begin with ec-10. it is the belly of the curve. i did that for thanksgiving and fo

among them steve schwarzman from blackstone, larry fink from blackrock, jamie dimon from jpmorgan chase disney, mary barra from gm. there were a does or so on the list, the most influential. the president-elect says when he is in the oval office he wants to meet with these folks fairy regularly. back to you. melissa: interesting. we'll see if he listens. thanks for that. connell. connell: a story about bashing billionaires. there have been a number of mainstream media headlines last few days, slamming donald trump's wealthy cabinet picks. "washington post," headline was, collective wealth defies trump's populist campaign promises. "chicago tribune," populist trump fills cabinet with billionaires and wall street tycoons. but president-elect has his own message for the media. >> put on some of the greatest business people in the world. one of the networks said, why, he put on a billionaire! at commerce. that is because this guy knows how to make money, folks. connell: here now to talk about all this, erick erickson, the resurgent editor and fox news contributor and noelle nikpour, gop fun

that is charles schwab money, about half of blackrock. itself is a fascinating story, one of the first mutual funds set up by a reporter 100 years ago. really interesting story and stephen isaacs is still with us. let me ask you, it feels to me that for the first time italian banks in weeks are actually making some progress -- actually, doing anything real, as far as moving assets. >> well, the price of the stock, we just saw monte paschi at zero. it is for pennies now. a few percentage points movement. up or down, it is neither here nor there. the market says it is effectively worth zero. banking is all about confidence and once you lose the confidence, you are in trouble. i cannot see how this equity deal could go forward. we have to have come in the short run, in front of the italian elections, some sort of government bailout. i think with the germans digging their heels in, they have their own problems on the nature of that bailout. it will have to be some sort of bail in. what do we do? i think the deal might be something like there

blackrock in with me this morning. he will see france go from 45 to 75 on political risk.ay see italy moved by a similar matter. indeed, if there is some kind of movement. i'm off to global radio. >> good morning. here areom radio and some of the stories we were focusing on. actelionan and j&j -- and j&j at the negotiating table. receipts jumped 11%. we are up 6.5% at the european open. 229, just about, swiss francs. sanofi gaining as well. we saw sanofi gain u.s. shares as well. it was in advanced talks with j&j came backe and. investors saw it was offering a little too much, not just with the $275 a share, but also with contingent value right. i wanted to see how monte dei paschi opened as well. the big question is, are we going to see that state rescue ies,italian treasur taking a 50% stake in monte dei paschi? investor has shown interest so far although people with knowledge of the matter saying the bank is probably going to fail to raise that 5 billion euros. guy. guy: actelion and johnson & the negotiating table just a week after ending earlier talks during previous

another story is a former fund manager of blackrock has been sentenced to four months in jail accusedief of investment week. let‘s talk first of all about monte dei paschi. it has been trying to raise money and it needed 5 billion euros by the end of next week. investors are euros by the end of next week. investors a re not euros by the end of next week. investors are not minded to stump up cash because they do not get what the business model is and the bank has consistently burned through any cash it had had over the last few months and it looks as if it will run out of money in the middle of next year. it looks as if the italian government will be the last hope for the bank. and there are others as well in very poor financial health. there are at least six italian banks which are in dire straits. mps, as it is known, is probably the oldest and most high profile. 0ther probably the oldest and most high profile. other banks have suffered with non—performing loans and bad debts which do not look like they will never be paid back. it is an endemic problem in the italian banking system.

ofll with us is the head allocation at blackrock.out how this affects the mix. if you look at the data, things are looking fairly good all around the world. >> this tracks how it is coming in relative to expectations, you see a market improvement. the prospect of getting more fiscal stimulus, and a fiscal stimulus at a time when the global economy is stabilizing,, maybe modestly accelerating. all the markets. look at iron ore, look at copper. all of these economically sensitive materials, they have been rally. so focusednk people on the election have missed this ego data story? >> i don't think the move would have been as dramatic except that came at a time when there was already a reflection point. no idea stimulus on top of that, maybe they could be inflation, maybe we will move to the upper and of this range which is defined by the global economy of the past five or six years. all of which became this theme. >> i wanted to what extent of the capital controls and china and out of china is coming into u.s. financial assets. to recei

scott to of blackrock is sitting next to me. we have come a long way very quickly.our sense of where the bond market is now? we have had a double bottom on yields and we have top tire, you have the elect -- president-elect talking about everything from repatriation to what companies to read. guest: expectations have changed rapidly. for 2017 andes 2018, that is a shift. the question is how much further can they go and are the going to move further and that -- the policies that trump is talking about are very critical in assessing that. first of all, repatriation of money which itself is about equal to the entire ig corporate issuance over the course of a year so it is a substantial amount of money. the corporateing tax rate at 28% to 15%. a 130 $3 billion into profits, it will have a substantial impact on the economy. we will see. have to assume some probability of it happening. you have had a market reaction that is substantially higher. i think they will continue to move higher. i believe he will begin to deliver. we have fair value of somewhere north of 2.5%. it

matt: later this morning, we will be getting the views of blackrock.king with us at 10:00 on the continent. at 11:30, ceo jean-claude trichet joins us from paris. let us bring in our guest, mark nash. he received $36 billion of assets under management. meeting, aheadd of, i guess boe meeting tomorrow, do you tend to see much less action or do people want to try to get positioned in the morning before the statement comes out? >> i think something that was very interesting that has changed in the markets is that it is no longer just about central banks. a monetary policy is no longer the key and the only driver of bond markets. it is definitely -- it has definitely moved away from this deal grab situation more towards the political side. the markets look more towards it comesl stimulus and out of the trunk camp. going into tonight's fed decision, i think they will hike rates and play pretty safe from there because they don't know extent of the exact the fiscal and supply-side policies that we are going to see coming out of the actual trump administration

names, a who's who of ceos from mary barra, chairman of general motors, larry fink, chairman of blackrocker, ceo of walt disney company. what you are looking at is a powerhouse group that will be available for the president-elect to turn to when he wants opinions and experience about these different industries and what we are seeing here is really historic. i don't think i have ever seen anything quite like this before. but i'm told that the group will meet on a regular basis, about once a month, with the president himself to discuss very big issues and on the top of that l list will be job growth and economic development. like i said before, this list really represents a bipartisan group of people so he will have some very diverse viewpoints to tap into. carol? >> all right. breaking news for us this morning. thank you. >>> so with that said, emotions are still raw 23 days after the election. that was abundantly clear at a harvard university event last night. trump's campaign manager kellyanne conway and jennifer palmieri, clinton's communications director, attended this forum meant to r

anna: marilyn watson stays with us from blackrock a little bit longer on the program.xt, glencore gives an update on the company's turnaround plan. all the details. this is bloomberg. ♪ yousef: oil boosts and stocks rally. opal -- opec cuts a deal that could lift energy shares. dumping debt. gathering economic momentum in the u.s. and trumps election season global bonds suffer their worst meltdown. left --n $1 trillion lost in november. government defends its clampdown on cash, the economy slows, and a survey suggests it will slump further. we will speak to a former deputy governor of the r.b.i. ♪ yousef: welcome to bloomberg daybreak europe. show.agship morning here with anna edwards. we have some breaking lines on glencore. anna: we have strategy date taking place at glencore. what a difference a year makes. this is a company that has been all about defending its survival to accompany that people are asking when will they pay a dividend? break fromaken a that recently. they are saying they completed for 1.4 a grail ops billion australian dollars. and proceeds coming

surprisingly, since we have arrived, there are more people who are hopeful about the pivot to fiscal, which blackrockhas been calling for. the lessening of the reliance on monetary policies globally. so there's brought optimism. does the optimism surprise you? new yorkre to sample city or san francisco, and would not come to a similar point of view. >> no, you wouldn't. i find it surprising that international investors in particular and those investors abroad looking at the united states seem willing to be supporters or give their incoming administration the benefit of the doubt with regard to new changes. that is not what is being felt at home. : i heard the same thing in saudi arabia three weeks ago. i heard the same thing in mexico city with carlos slim. is a difference between optimism and expectation. when you meet with sovereign law funds, when you meet with other sovereign institutions, what kind of expectations to they have for the performance of the global economy and financial markets? >> there is a broad expectation and realization that, in actual fact, the overreliance -- i think we have

just bring in larry from blackrock and he'll tell you he spent a lot of money on those people's wishes>> the irony is that a lot of active managers use the portfolio in order to protect parts of their portfolio, but in terms of the flip side, it's also worth watching the publicly traded asset management companies because those guys have been pummelled with their costs. their cost model really being under attack. >> that's right, so you've got guys lix waddle and reed. >> janice. >> much of their models are based upon funds that involve active management and they're trying to figure out a way to lower their costs to provide active management still. vanguard does this. they provide active management, but at much, much lower costs, so some of it is going to indexing and passive investing, but i don't think it's going away i think to find a way to do it efficiently. >> let's bring in a guy who knows about that. head of funds and managed accounts. welcome back. jump in here. mr. icahn seems concerned as he has been his historically, about the volume of money into etfs earlier this year, he

the investment manager and research government credit index and we have another 300 million in the blackrock 1-3 year treasury another 700 million in the barren investment which is very very high quality. what i am driving at is that between these, we have-we have $6 billion of very liquid investments. a little over 3 billion in public equity and a little less than 3 billion in fixed income. so i can ballpark it could i can see it that we are in good position here for a wild it's more the pacing going forward and is that called overtime? or is it just laid out a few more years. but we will teach oh this more periodically for the board. >> thank you. >> when you share this afternoon and the other times were the stock market is going and pricing is high and p/e ratios are high, today sure that you have a material concern about those values. if you don't make recommendations to us of any change are we just to assume that you take your asset allocation and go forward and you're taking on those maternal concerns as a proactive action to stay in the market or you just giving us a warning so we can

steve schwartzman of blackstone, mary barrett, ceo of general motors, jamie dimon, larry fink of blackrock, bob iger of disney. i'm looking for gasparino, no, no, no, no. >> how about scaramucci? skybridge capital? neil: daniel jurgen, jack welch our friend, pretty big crowd. we don't know others who are there. >> and people who didn't necessarily like him. remember jamie dimon? neil: three people were not big fans, the former chairman of boeing. what do these kind of things prove? >> they produce nothing, president obama had a burch of them. neil: back here, i led this segment with it, and we did a little alert thing. >> i know, but you agree with me on the break. neil: i did, okay. well. [laughter] >> you agree. you didn't just agree with me, you put it in my head. neil: yes, i'm sorry. well, so you're saying and others have done this sort of thing. >> obama did. neil: ronald reagan are in sort of stuff. there were short meetings. what do they prove? just you want to what, you want to get them in the inner circle? >> want the business community to know that you're not insane. obama, his