getting someey are flows from blackrock, at least. of course, they would do better. are flows distorting this market? andrew: the amount invested currently in smart data strategies are very low, so the flows do not play that much role today. if we look at the s&p 500, 20 trilliond dollars. currently, of that $20 trillion, less than 1% of that is in mark data strategies. dani: i think this is an important point here because you have almost a notorious clip of assets, not debating about valuations eating pumped from flows. -- getting pumped from flows. is he wrong? andrew: we do have the view that weis possible to time, and certainly do it blackrock. i think the way we should start with this is start with a diversified multifactor combination. the key here is not short in and out coming. the key here is tilting and gradually rotating around that strategic multifactor allocation. made reference to the great debate, rights -- on which side does blackrock come down? andrew: we believe it is possible to tilt moderate list -- modestly, accurately, with conviction. dani: i a

joining us now is rick rieder blackrock ceo and adam meyer.er three days enough for companies to invest even more in cybersecurity? >> i hope so. the scale and scope of this theg and the fact that patch has been around for over a month now is certainly of people need to be paying attentions >> rick n your world, does this matter? >> everything else in the world is incredible. in termswon't matter of the broad market. it started develop more of around the world. you think about the world we live in today. everything is at our fingertips terms of data. all the information flow. react when it comes significant, markets then all of a sudden reacts. is in the new world that we live in. great --ne of the >> this is where the bulk of the money being spent? >> 100% across the entire industry. is the crux what you do. >> looking at the situation, blame game here microsoft, for not providing the servicing for the older, or is it the companies themselves for take responsibilities? >> there's blood on everybody's hands when it comes to responsibility. the

scott thiel, cio at blackrock.g up on the program, we will bring you our exclusive interview with italian finance minister pier carlo padoan one after fears about the bank that took the spotlight at the g7 meeting in bari. how did he calm his fellow ministers? europe's new power couple. emmanuel macron heads to hear, to berlin, to meet angela merkel in the wake of her big win in germany's most populous state. we will discuss all of that and more. this is bloomberg. ♪ guy: 8:13 in london. 9:13 in much of europe. but us have about with this market open is taking us right now. these are the numbers to her not quite as well bid as we first thought this morning. commodity stocks are bid this morning. there are 12 stocks going ex dividend across the stoxx 600 this morning. dividend.on going ex that is acting a little bit of a drag. let us go to narrative catch -- nejra cehic. nejra: a record high for a beverage company after 3.4% -- after it said the full-year results are comfortably ahead of estimates. this is one of th

jonathan: jeff cucunato from blackrock clicking -- sticking with me.uries throughout the week and yields grinding lower, down two basis -- about points. still ahead on the final spread, it is the week ahead featuring the -- president trump going on tour. ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is "bloomberg real yield." coming up over the next week, the chinese president hosting world leaders, including the russian president as he promotes his trade and in for structure plan. president donald trump getting his first international tour. some things on the agenda coming up in the next week. i want to bring in our roundtable including greg davis, oksana aronov, and jeff cucunato from blackrock. a question coming in from a viewer via the bloomberg terminal. on a default adjusted basis, isn't em better? oksana: the answer to that question will very much depend on what part of em. as i said, it is differentiated. if you look at the indices very simply and you are getting paid $250 over em and $850 over triple rated high yields, do not con

philipp hildebrand with us from blackrock.ore to on international relations and on manchester. conversation that we are really looking forward to, this is wrapped around the national one minute of silence we will see in the united kingdom today. coming up, the backdrop of market turmoil in china wrapped around a risk on feel off the fed minutes yesterday. futures up 7. dow futures up 75. we are also watching a stronger recent resistance. stay with us. this is bloomberg. ♪ ♪ francine: bloomberg surveillance. you can see the chancellor angela merkel speaking as she is joined by the former u.s. president, barack obama. they are discussing democracy. there is very tight security in front of brandenburg gate. people have gathered in berlin to hear and listen to the former president, barack obama in his first speaking event since leaving the white house in january. they are talking about how to tackle terrorism. a little bit ironic they chose to do this today and president donald trump is on his first visit also to brussels at the h

they are behind blackrock when it comes to deutsche bank. why deutsche bank?iversifying through its many affiliates into financial services, port , even in this era of capital controls. it is still making strategic investments. california-based i.t. company last year for $6 billion. according to people familiar with its situation, increasing its stake in deutsche bank. deutsche bank has had his problems as well. john cryan the ceo trying to return to growth because those scandals, if you want to call them that, eroded capital. getting an investment from goinge like hna group towards that. people familiar with the deal saying they will raise their stake from what in february it was a 3% stake him then in march, they announced it was a 4.8% stake, so they are under 10%,it to just basically doubling its stake. as you rightly said, this larger position in deutsche bank would surpass blackrock, which was the largest shareholder which has a stake of 5.9 percent, followed by ubs of 3%. stake? about this what does it say about their ambitions outside of china? >> dive

the £650,000 a year that george osborne earns for four days a month at blackrock, the world's biggestict of interest. with limited resources and a business model under pressure, 0sborne will need to turn the standards finances around. for a former chancellor who practised austerity and is no stranger to controversy, this newjob has eerie echoes of his last one. amol rajan, bbc news. the german chancellor, angela merkel, is in russia for a meeting with vladimir putin later today. it's the first time they have held talks for two years. relations between the two countries have worsened since russia's annexation of crimea in ukraine in 2014. crimea and the war in syria are expected to be high on the agenda. 0ur moscow correspondent, steve rosenberg, joins me now. they're meeting in sochi at president putin's summer residence. how difficult could this meeting prove to be? i think it is going to be quite difficult. the talks are going on right now. we believe they are talking about the conflict in ukraine, the war in syria, some of the key issues which have driven a wedge between russia and

surpassesgs company blackrock 5.9% investment which has the largest state in georgia. -- deutsche.ted airlines apologize for hauling of passenger off a plane. the ceo told lawmakers it should never be repeated. the house transportation committee hearing comes after the doctor was dragged off a united flight in chicago having refused to give up his seat to a crew member. thisu and the public in committee need answers. 2 million people will fly today or something close to 2 million. they are tired of being treated inappropriately without courtesy. if something is broken, and the obvious to five between passengers and airlines needs to be addressed. yousef: a company is not prepared to continue funding another company. wenttalian flag carrier into bankruptcy for the second time in this decade. they have exhausted all options after it was voted against a $2 million plan which cut salary and job cuts. saudi arabia's de facto leader says half the money raised by a aramco's ipo will be spent on domestic investment. he also said the kingdom will retain full ownership of its oil and gas res

that takes them past blackrock, the largest shareholder at four 9% -- 5.9%.k, they saw the erosion of capital through some of the scandals that happened over the last year with the legal probes and misconduct charges, so ceo john cryan looking to emphasize growth because of that erosion of capital stemming from those incidents. haidi: as you know, this is one of the most exuberantly acquisitive companies in china. theiroes this say about ambitions outside of china? does this change the strategy at all? time is an interesting because the directives from be morehave been to selective than more strategic. we have seen the struggles given capital controls to stem outflows, irrational outflows, na has been, but h i aggressive, really diversifying the company, taking stakes in a swiss duty-free company, and we are expecting they are in negotiations to expand their stake in another duty-free con company, hilton worldwide, a big stake there, sky bridge portal, but also swiss international they took a stake in that come also gate group, a , and lastort caterer year th

this is a huge deal for blackrock.f your people, your younger people are working there tails off on these flights. a big deal for blackrock. you've seen productivity growth fall over recent years. part of that has been around increased regulation which is constraining growth. we have some hope to see supply-side refomr. rm. low growthare in a environment, one that we think is self sustained but very low growth. that keeps central banks very cautious. i think it is important to highlight a low growth environment is not necessarily one which is a poor one for investment. view, lowe the long growth environment, you are being paid to invest in risk assets, equities and european equities -- buyom: would you airlines? richard: the areas that we prefer is financials in the u.s. technology is where we see tremendous earnings growth. about theing more disruption around the technology sector. some of the more cyclical sectors. to see has been great you. thank you very much for seeing us at bloomberg. iag down a touch this mornin

let's get thoughts from isabel of blackrock.lore the idea that where the next black swan is coming from is something we may not even have seen before. are we reading things wrong and how do you look at data? >> by definition, if it is a black swan, if i could say just on this bernanke comment, a key lesson of the crisis was not to let the banks collapse. they did better than that in the u.s. they made sure they cleaned up their balance sheets quickly and recapitalized them so they would be fit and proper to support economic growth again. that's what didn't happen in europe. that's why we have this transmission problem right now. i don't think too many people are saying we need to roll back regulation. i'm not hearing that at all. for the reasons you're seeing, we do need a sound financial system. the question is more how long can you keep going with a chronically sick banking system like we're seeing in some european countries and what is that going to do to the economy once interest rates start going up again and you know, in e

. ♪ ♪ alix: blackrock sete --jonathan: blackrock ceo spoke saying he felt markets were fairly priced-quarter to be disappointing's in terms of earnings and growth -- disappointing in terms of earnings and growth. take a listen. >> we are training at pretty high pe relative level parts of the world and depending on the agenda,of the trump will probably determine the equity market for the remainder of the year. jonathan: still with us is brian jacobsen. the story quite nuanced because we can have an investor think -- an investor sitting here and there and tell us it is not dependent on the trump agenda. but to larry fink, it is. where do you stand? brian: i think it is partially dependent on the trump addenda so i guess i will sit uncomfortably on the middle of the fence to read i think the market rally has been driven by three forces, the central banks are still broadly accommodative. european central bank is doing asset purchases and the fed will take a low and slow event -- approach to hiking rates. also, you have the outlook for regulatory and tax reforms supporting u.s. equities i

the £650,000 a year that george osborne earns for four days a month at blackrock, the world's biggest will need to turn the standards finances around. for a former chancellor who practised austerity and is no stranger to controversy, this newjob has eerie echoes of his last one. amol rajan, bbc news. and just to show people the front page. he's picked up the main story the day, brussels twists the knife on brexit. the telegraph has been looking at the editorial of newspaper incidentally and they say in the editorial which presumably he has some control over, someone has written the prime minister and her election can amounts to no more than a slogan. this idea that it would be strong and stable leadership from theresa may. —— election campaign. and he put out another tweet, and he has been out with the newspaper vendor ‘s tonight. you could head down to oxford circus tube station, and see if you can find george osborne and i will buy you a pint if you can find him! as was the serious question is, if someone who has now become a journalist or someone who is now pursuing politics by oth

last year the investment firm blackrock with more than a trillion dollars in assets under management issued a report titled "adapting portfolios to climate change." which describes and i quote, how investors can incorporate climate factors to reduce risk and seize opportunities. the asset owners disclosure project last week reported that 60% of the world's 500 biggest asset owners with funds worth $27 trillion -- hold your breath on that -- $27 trillion now recognized the financial risks of climate change and opportunities in the low carbon transition, and our taking action. bill gates, along with more than 20 of the world's most successful business people launched a billion dollar investment fund in late 2016. breakthrough energy ventures to reduce greenhouse gas emissions by financing clean energy technology. these cleareyed assessments of the business effects of climate change are not entirely new. back in 2009, donald trump was joining business leaders to warn us about the catastrophic and irreversible effects of climate change. there will be catastrophic and irreversible consequ

blackrock, can come, and blue crest capital management are preparing litigation against banks over riggingoreign exchange markets, according to people familiar with the matter. they say the firms are looking to recover losses they blame on currency manipulation. the lawsuit targets but please, citigroup, jpmorgan, where bank of scotland, and ubs. u.s. regulars are reviewing possible payment of violations stemming back to an internal probe that started in 2015. the currency transfer company is in acquisition talks with jack ma. rivers could raise national security concerns by allowing chinese companies access to u.s. infrastructure. disney could be heading once again to the top of the summer box office. the studio hopes to capitalize on the power of proven franchises, rolling out sequels to "guardians of the galaxy, was quote "pirates of the caribbean ," and "cars." volumeans of the galaxy, two" could clear $1 billion of global ticket sales. that is your bloomberg "business flash" update. oil this is to blessing after a selloff but the vti is -- stabilizing after a selloff but did a vti is

i want to bring in our roundtable including greg davis, oksana aronov, and jeff cucunato from blackrockon coming in from a viewer via the bloomberg terminal. this one for you, oksana. on a default adjusted basis, isn't em better? oksana: the answer to that question will very much depend on what part of em. as i said, it is differentiated. if you look at the indices very simply and you are getting paid $250 over em and $850 over in triple rated high yields, do not confuse quality with safety. even if you assume 1% of default in e.m. versus 10% default in that triple category, you are better off and you have a much clearer picture of what your default -- what your recovery may be in the high-yield space than you do in em because this year we are finding rules are meant to be broken. these questions, there are no set answers to them and you have to consider all the variables. jonathan: this is the rapidfire round where i ask you one question and it is one word answers only and i begin greg davis. more complacency in the u.s. or europe for the sovereign base? greg: u.s. oksana: europe. jeff

blackrock is in advanced talks to fund and the infirm.krock and several other state run lenders will find the providerayment service $100 million. if completed, it would make the second startup with more than $1 billion from the indian's in tech industry. bill ackman is recommending howard hughes to investors. speaking in new york, he says howard hughes has "a huge start over the past six years," and that this is one of the most opportune times to invest. pershing square is the single largest shareholder of that stock. that is your "bloomberg business flash." joe: i want to bring you some headlines from the investment conference. david einhorn saying pretty negative comments about core laboratories, a company that does petroleum reservoir services to major independent oil and gas producers. he says the company has a 45 potential downside on the stock. it is not a secular growth story. the company is likely to underperform its peers. they are confused about core labs. instantly falling 2.5%. there is little job -- there was ambiguity about

the £650,000 a year that george osborne earns for four days a month at blackrock, the world‘s biggestmer chancellor who practised austerity and is no stranger to controversy, this newjob has eerie echoes of his last one. amol rajan, bbc news. in a moment a look at how the financial markets in europe closed the day, but first, the headlines on bbc news: jeremy corbyn defends his shadow home secretary after she got the figures wrong for labour‘s pledge to fund 10,000 extra police officers for england and wales. theresa may campaigns in cornwall as senior conservatives dismiss reports of tension with the european commission about how brexit talks will proceed. an inquestjury finds a teenager suffering from anorexia took her own life partly because her family was not properly supported to look after her when she was released from hospital. a fairly positive day on the markets — most european and asian markets on the up — investors back from the long weekend with a healthy appetite — now looking towards the us federal reserve meeting and the release of us jobs data later in the week. but h

--hna has overtaken blackrock is the largest shareholder.they sold shares to increase capital. and sainsbury's says it is able to cope with the brexit induced squeeze on profits. at theof profits estimates. grocers are trying to pass on higher imports. sainsbury's cfo says there is still uncertainty. >> clearly, it is helpful to us to have a stable government. it is helpful to have some clarity on where we go forward but we understand it is a complex situation and the government is managing that the best they can and our job is to focus on the business and what we can do day to day. taylor: earnings were held by those that were a discount retailer. that is your bloomberg business flash. francine: breaking news out of brussels, we see the chief exit negotiator for the european commission. from brussels, 30 minutes ago. mr. barnier saying that the hard work has paid off. he says he has worked a lot with president juncker. he wants a safe approach. i don't need to put this in context for the international audience but it is clear that there are

want to leave you with a quote from guy by the name of morris pearl, former managing director at blackrock an open letter to the ceo of mcdonald's and said, you demonstrated a real willingness to try new things and take risks and changes like all-day breakfast yielded positive short-term results but menu innovations won't sustain success over the long haul. you can't be a successful company if your workers have to be on food stamps in order to get buy because you don't pay them enough. a message from the millionaires. liz: walmart started paying their employees more. it actually didn't hurt them. i do fear, as many people do, what happens if people stop hiring because it becomes too expensive to pay employees. but certainly laid out a case, especially when you have morris pearl, billionaire -- multibillionaire, yeah. it is a really tough, it's a tough one here. reporter: a lot of people are concerned about income inequality in this country. people feeling like this is not right somehow. i don't know what the answer is. i don't have a answer. i don't blame one party or other. president obam

strategist at blackrock. >>> still coming up on the show, how will emmanuel macron handle the demands of his office. we'll speak to a former mreeg axel lemaire, freeze stick around. >>> i'm just looking at the latest note coming from bank of america merrill lynch saying that it's upgrading french gdp forecasts by 20 basis points for 2017 and 10 basis founds pour 2018 at 1.3% and 1.4% respe respective respectively. we'll take it, on the back of emmanuel macron being elected. he's known to be an economic liberal. the question for economists out there is whether he can push through all of this reform. steve. >> thank you very much indeed for that carolin. the relationship between france and the commission and france and eu, pro-european who wants more integration. and a eurozone finance minister as well. we've been speaking for the commission, president jean-luc juncker offering his congratulations. speaking to cnbc, the european commission of economic and financial affairs, echoing this sentime sentiment, saying he was optimistic about the future of the union. >> first, you got to deal

and saudi executives and there was a representative from raytheon, blackrock, the new york stock exchange as well as hewlett -- lockheed martin. the lockheed martin ceo in particular was a female ceo and was given a closed-door briefing by prominent presentation in a state where women's rights are abominable. been a very friendly meeting so far between israeli dignitaries and the president. any word on reactions to the possibility that donald trump gave israeli information to the russians? havem told the israelis backed off that accusation but president trump earlier today met privately and made public remarks with israeli president rivlin saying they hope this is a new era in sort of brokering a peace deal. this has been elusive for other administrations and a deal that president would be the deal of all deals. kushnerdjaered to broker those deals. there are senior members of the administration who have returned to the united states. reince priapus and steve bannon are among them. while the administration would like to move past the firestorm of controversy about the ongoing investigatio

blackrock at 9.4 million shares advantage guard, only 7 million shares and downlights third point 2.25illion. and the stock price went up. it's up a little bit today. >> still love that $17 level. >>> when we come back, european politics are in focus for macron's picks for prime minister. to merkel's big time win with the implications and the move in oil. >> today is the 21st anniversary of am dawn's ipo, the shares have gone from $2 to $961 on friday. what investors likely stuck it out that time, pullbacks at least 20%, including a 64% plunge during the crisis. that chart tells the whole story. amazon on a tear in recent years. we're back in a couple minutes. ♪ -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. it's travel, better connected. the shlike a bald penguin.t card frohow do i look?ica. [ laughing ] show me the b

the chinese conglomerate hna has taken over blackrock as the largest stakeholder. deutsche bank has been on a mission to increase funds after incurring losses related to misconduct charges and legal investigations. not a lot of reaction. is that a big deal? top shareholder change? >> i think it's interesting in the perspective of what was and still just about it is the top three sgloebglobal investment b having a 10% stake from a chinese company. particularly given deutsche bank's falling share price, many wonder if this will push for a bigger takeover. >>> perrigo says its offices were searched by the u.s. department of justice anti-drug division. shares down 1.9%. >> marine le pen offering a clear vision of the currentry ahe currency ahead of the election on sunday. i think there's a debate tonight? >> i'm trying to figure out where to watch it there's some french bars where i have seen soccer matches in the past. soccer is easier to watch in french than the debate. >> let's look at where european stocks are trading. soft open, and weakness across the board. noth

banning protests because of violence that are being introduced by a third they are being, paid like blackrock. these people are coming in and creating violence to create mayhem. they are not on the left or right, they are being paid. we need to figure out who is paying them. betting people but we need to make people check in if they go to these college put up cameras, and you have to be able to see her face. if you are covering up your face you are hiding your identity. host: i believe the administration at berkeley was saying some of the protesters -- caller: exactly. are startingters fires and smashing windows and burning buildings, i don't believe they are students. i don't believe they are peaceful protesters. i believe they are mercenaries. they are being paid to be there to cause mayhem. or they just don't believe in government. there are a small number of people -- but anyway, that's what i have to say. sides beingsee both able to present themselves at colleges. i think people should sit down and listen to them because if you don't know the other side 's opinion you can't say you're ri

along with the rest of the asset management industry and has seen tough competition from rivals like blackrock which offer more passive investment products. >>> european data is showing strength after a strong pmi number from italy, spain, france, germany. both the italian and french manufacturing pmis hit six-year highs, german pmis also hovering near the six-year mark. let's get back out to thomas harr from danske bank still with us from copenhagen. if we look at euro/dollar, it seems like it's fully pricing in a macron win. do you think that's justified? >> i think it's right. it seems most likely that macron will win given the lead he has in the polls against le pen. i would say that if he wins, the market reaction should be relatively muted. up to a half figure, so in euro/dollar, because it removes a bit of that uncertainty and a rally in french fixed income. but the market reaction will be muted. i think what is interesting is that we're seeing this european data turning up, we're seeing chinese and u.s. data weaker. >> does that mean more upside for the you're rov when it comes comes t

tom: help us with blackrock's thoughts on alma distraction. what it means for u.s. gdp and markets.stay focused on the fundamentals. , itof the political noise has paid to stay focused on the fundamentals. u.s. momentum and growth is pretty solid, maybe the second derivative has come off a little , as you powered the rally valuations. the u.s., in particular, looking more stretched, but there is no sign of anything serious. the opportunities are probably a little more exciting elsewhere. europe a little bit, japan a little bit of a catch up trade. you have to stay focused on the fundamentals. tom: we will continue our discussion with rupert harrison through the next hour. get ready for your weekend reading. this is a perfect friday desk. -- friday guest. the challengesn secretary tillerson has with the distractions in washington. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." bloombergto the

how do you guys at blackrock think of the probability of that and how necessary it is for this market out some of the noise and whatever happens here when its comes the new fbi director. moving on to health care and then tax reform. what does it look like to you? >> we want to separate the issues. there was a post election surge in the u.s. financial markets. a lot of expectations around what united republican governmentence might bring. you add a lot of trump trades and a lot of that has really unwound. what hasn't unwound is the stuff that has preceded or came before the trump election which was the reflation theme, the global economic recovery. a lot of that is still with us, still in the investment horizon. certainly a better outcome in terms of fundamental tax reform. fiscal policy support for the longer run growth outlook would be positive. i think the markets are discounting any significance of that happening in i -- any time soon and that's irrespective of the back drop for the reflationary outlook. for stabilizing the global growth is still supportive. if we can get something

earlier today, the blackrock cio for fixed income discussed how trump's rhetoric on protectionism hascome to pass. exports, including chinese exports into the u.s., pretty impressive. we have not seen any initiatives. others willand continue to work on bilateral agreements come in and around nafta and tpp. better tradeint of packages for the u.s. trade has been impressive to say the least. >> is the president having his cake and eating it too? he canceled tpp, but other than u.s.-china trade deal that will increase trade. >> if we followed every piece of , and hattie translate that, it is really difficult. lay out an art, you your endpoint and negotiate back for it. we have the ability to create better trade deals. i think the u.s. has been free trade oriented and the rest of .he world isn't the opportunity is there. that is the trade. the data is a different story, the weaker cpi reading on friday, factory orders light, new orders in negative territory . what is your take on the recent data we have seen? and oneweek was funny way and that ppi was solid and you had a bunch of people t

we told you earlier big names like blackrock and appaloosa, third point, which are big fund taken a stakeit was spiking. we just learned goldman sachs has taken a share stake of 1.1 million shares of snap. this according to an sec filing. so they have already done it. it didn't just happen. they did it march 31st. i do want to let you know the high since it went public earlier this year, $29.44. it is climbing closer to that at $20.63. it had been as low as 1.59 dollars. so goldman taking a big stake in snap or bigger, 1.1 million stake here. >>> united continental airlines has had hits problems as we know over the last few months. the worst which was a dragging incident where a paying passenger was pulled off of a flight even though he had a ticket. today another headline-grabber that could very well after effect anybody that flies united. a flight attendant mistakenly posted cockpit door security procedures including the access codes that you need to gain access to the cockpit! and apparently this person put it out on publicly-available website. jeff flock, live at o'hare, tell me this

blackrock now is the allocation fund general manager.se case when it comes to budget tax reform and health care? the tropics -- the trump agenda, what are you modeling? >> good morning. probably not much expected for 2017. at some point, there will be a tax cut. i expect again for there to be a .oderate tax cut if you take the trump numbers literally, it implies a pretty significant tax cut. counting on economic assumptions for the budget. at the end, more fiscally responsible. modestill probably be a one. i do not expect significant spending cuts at all. is nextnd, maybe it year, but i would not count on the budget today. ,uite the near record highs only model it -- modest 2018? >> i think it does. market record high, part of what it reflects is, as jim said, we will not necessarily get the type of fiscal stimulus the market was hoping for last fall. you have a solid economy and the expansionsee spread out and not much evidence we're seeing a significant acceleration. in december, back about 20 basis points lower. president of the unite

blackrock's larry fink says u.k. equities are at full price. willwith cpi figures, m mario draghi left feeling deflated? this is "bloomberg surveillance ." i'm francine lacqua in london. we are starting out with the pound, and that goes back to the election we have in the u.k. on june 8. we are getting data one hour from now. let's quickly get to the markets. the pound definitely, the story of the day, dropping. i would point to the latest polls by u.k. government. we have our london bureau chief joining us to look at what a hung parliament could look like, and whether we believe the p olls or not. .he vix, down from 1.8 virtually600, unchanged. let's get straight to the bloomberg first word news. reporter: in afghanistan, as many as 80 people have been killed and 350 injured in a suicide car bombing. there was a rate on the country's largest military hospital in march. the u.s. says the first ever test of the defense system against an intercontinental ballistic missile was a success. this was after a ground-based interceptor shot down a mock w

you, jeffo chat with rosenberg at blackrock. news check on first world with mark crumpton. mark: the united states says it tipped off france with regards to russian hacking. mike rogers told the senate committee, the nsa became aware of the activity and total officials about it. data from a manual macron's 'smpaign -- a manual macron campaign was leaked online. why house officials say military advisers are urging president trump to send 5000 additional butps in afghanistan, taliban militants have been gaining ground. mey apparently gave mistaken testimony about hillary clinton's emails. sources tell the associated press there were not that many emails involved. the source also said no emails wered as "classified" forwarded. ryan think he says he values -- ours -- whether the federal government is using the right way to preserve tribal lands. ke is touring utah, part of a project ordered by trump. environmental groups have about to file lawsuits if the promises.rescinds the global news 24 hours a day, powered by more than 2600 journalists and analysts across more than 120 co

blackrock's larry fink says u.k. equities are at full price.gures, m mario draghi left feeling deflated? this is "bloomberg surveillance ." i'm francine lacqua in london. we are starting out with the

blackrock and vanguard dominating that industry with combined assets of around $9 trillion. expect greater consolidation, that you need that scale to be able to keep prices low, which of course is a central mantra for vanguard. yvonne: great interview. the latest inflation data out of japan. this is bloomberg. ♪ ramy: welcome back, you're watching "daybreak asia," i am ramy inocencio in new york. yvonne: i am yvonne man in hong kong. japan inflation numbers of falling short of expectations, wee cpi -- the fastest rate have seen in japan in two years. we have the principle of global investors in japan. it is up to wait status. we areu look at 0.3%, coming in at very low expectations. what do you make of this kind of inflation story out of japan? are we too inflation-obsessed? >> yes. thank you for having me. the story in japan i think is that inflation is under several forces that are pushing it down. aging demographics, declining population, implementation of technology, which is in itself deflationary. add to that the fact japan has an expansionary monetary policy but a res

. >> we find that kelly evans -- >> you're lucky you're still at blackrock. you have met his replacement yet? is his name c 3 p 0? who is replacing you? r2-d2? >> we have plenty of humans. >> you're all being -- larry was in here. he mentioned you specifically. who is the tall one that speaks language that you can understand. the taller one. not the little one. >> we have plenty of humans left. >> you better hope you're not replaced by hal. >> you know. >> we have to keep going. in washington news, president trump will leave washington today to begin his first foreign trip as president. eamon javers joins us now from the nation's capital. how would i describe the last 12 hours, quiet. too quiet. >> no major bombshells. no tweets. too. >> quiet. watch your twitter feed. that might be the next thing. though there were some good tweets yesterday from the president. >> yesterday we had an east room press conference in which the president was asked if he ever asked former fbi director james comey to back off on the investigation into mike flynn. the president said

a lot of people are getting replaced at blackrock. that's not really true. your job is safe?t going to ask you that. >> this is the first question to someone you like. >> it's very small amount -- remember what sorkin did to poor larry fink when i was on about the replacing everybody with robots? >> i don't remember what andrew asked him. >> just asking. and it's a very small amount. so, okay. wasting time. that's the first time i ever have, i think. so you heard the -- you heard the intro. is the term trade back on in your view? >> i think the reflation trade is back on. people have priced out of a lot of the trump trade but they conflated the decline of the trump trade skepticism about how quickly tax cuts would come through with the ongoing reflation trade which started well before the u.s. election and the recent data suggesting that's still firmly in place. i think we're transitioning to a sustained period of above trend growth coming not just from the u.s. but globally which gives confidence that actually this could last for a long time. and the anal sis tells us we're

building manager greystar and building owner blackrock have not agreed to a settlement so lawsuits againstcompanies continue. (pam) at least one person is under arrest tonight... after a mob of teens attacked a man at a san francisco park. it happened last night at a park at felton and holyoke streets in the city's bayview district. according to police, the 30-year- old man was with his son. a group of about 20 teens was having a water fight nearby... and when the father went to warn them to be careful... some of them started to kick and punch him. he was taken to the hospital .. his injuries are not considered life- threatening. ( steve ) the snow pack is already disappearing in the sierra. we will show you some of the problems the runoff is causing tonight.( pam ) and a science teacher gets a little too much into his work. what he got busted for.. which may bring back memories of the popular t-v show, 'breaking bad'.( steve ) the sierra lamar trial is officially in the hands of the jury tonight. the expectations of those who have been tracking this case since the beginning. (2-shot) to t

. >>> right, it's vanguard and then you get blackrock.s more or less, yeah, that's your shareholder base. we talk about that sometimes in this vets activist environment, because they also become the very important shareholders when it comes to decisions on a board of directors and/or a proxy fight, but they also offer very slim fees, which is another part of it as well. you're not paying a lot for that, either, so you're making more moan on the return. >> i've given up the idea you should try to time it. peter lynch told you there's always going to be declines and you just have to keep the great money manager from -- i'm not saying there's a level of complacency, but a recognition what the heck else are we supposed to do? we can keep it in cash, or keep it in the checking account, or we can do and go some of it in the index fund. it's going to go up and down. it's almost like people really understand stocks? but maybe they do, because when you have 401(k) buyers and i.r.a. buyers, they put it in index funds and say, okay, i'll contribute.

and property prices analyzed by blackrock real estate. ♪ ♪ david: do you get tired of people asking you mary: it's a question asked more than it should. david: do your children treat you with more respect? mary: my son reminded me last mother's day venture most important job is mom. david: the government put some money in general motors. did the government get its money back? mary: i will tell you that at general motors we will be forever grateful for what the government did. david: do your board of directors let you go in a driverless car? [laughter] mary: if it is from general motors, i think yes. >> would you fix your tie, please? david: people wouldn't recognize e

he has hired four top aides with the title towns of including a former blackrock executive, and the senate't vote on any of them. administrations on both sides have used the tactic. u.k. police it is too early to know whether monday's attack in manchester was part of a terror plot or larger attack. they named salman abedi as the manchester arena bomber, and at times says he returned from a trip to libya three weeks ago. the islamic state group says he was linked to them. the attack comes just two weeks before the general election, and all campaigning has been suspended. global news 24 hours a day, powered by more than 2600 reporters and analysts in more than 120 countries. i am paul allen. this is bloomberg. >> we are getting breaking news right now. that is the boj governor kuroda speaking at this conference in tokyo. there is some headlines coming out right now. he is saying that monetary policy is not for fixing inequality, but they pay attention to this. but also, monetary policy, saying that many agree the industry has fallen in recent years. almost kind of stating an observation alre

we have people concerned that vanguard and blackrock are starting to own too much of stocks, and theirte there are concerns -- private companies pushing capitalism. the boj could have different issues. that is a legit concern if the bank of japan is in the top 10 of all the stocks. that is a decent concern. betty: thank you so much. good to see you. it covers the, etf market for us. you can get a roundup of this story and many more that you need to know to get your day going in today's edition of daybreak. bloomberg's if that was there to dayb on bloomberg. you can customize your settings so you only get news on industries and assets you care about. this is bloomberg. ♪ anchor: this is they break. i am betty liu in new york. yvonne: i am yvonne man in hong kong. rio tinto plans to buy back billions of dollars worth of bonds as it seeks to rain and that's. were from paul allen -- as it seeks to rein in debt. paul allen. all $1.7of all, billion worth of bonds dated 2019-2020 and $700 million dated between 2021-20 35. this is all in an effort to cut back on debt in an era of falling

group patriotic millionaires, run by that fellow morris pearl, who used to be a managing partner at blackrockve easterbrook at mcdonald's. mcdonald's is part of the problem. mcdonald's can't survive over the long term if it is workers are scraping by. the business model they pioneered in the '50s is falling flat with 21st century consumers. i would make the point that the business model seems to work pretty well over the course of the past year or so. six month return on the stock, 23% by my calculation. they're on track today, neil, for an all-time record close today if we stay where we're trading right now, the stock would be at an all-time record. maybe a good time to give people a raise when you're doing well. neil: protesters argument, jeff. a lot of them too, seem to forget, mcdonald's alwaysç comes out and say we, this is issue in the franchisee level. this is not a corporatewide statement we make because it's a little bit different in fast-food, but that argument never goes very far, does it? reporter: no. 90% of the mcdonald's restaurants are not owned by mcdonald's. they're owned b

there's fidelity, blackrock, pimco, and are you telling -- is the message that no u.s. investor should own any of this debt? >> well, i think any investor should be free to invest in whatever they want to invest in, and they should face the consequences both financial and in terms of their reputation capital that are associated with those trades. that's it. and in this case, goldman is suffering. they did not manage their reputation risk in a prudent way. they did not think it through. it was the stupid trade from that point of view. >> yeah. one second, let's get the facts about this out there according to the story. the government was under duress to raise cash because reserves were dwindling, so whoever the investors are were able to pick up the bonds fcents on the dollar, and some improves, and what they are going for, and so that's been played in a number of political outcomes from a change of regimes, so it's not ruling out. why is it taking the time they are supporting this little regime? >> well, it's not exactly clear the details of the transaction. i mean, the

. >>> one blackrock strategist says fear index is nothing to fear. he'll state his case.ned. >> welcome back. a new study showing that epipens can handle a longer shelf life than cinco de mayo mylen does. a new study says epipens still contain 84% of active medicines, four years after their printed expiration date. meg terrell is here to discuss this. this is four years after the expiration date, which means it's 14 months but they're basically usable? >> these folks looked at 41 epipens an nine of the epipen, juniors for kids. the oldest were about 50 months after the printed expiration date. they found all of them had more than 80% concentration in them after that date. they are arguing perhaps these things last longer than mylen let on. >> if these work, meg, if there is son active medicine, not 100%. maybe the one didn't work the next one did. what would that mean in practice? >> there was varably in these data, we did see curve the older the pens were, the less concentration of epineprrin was in them. they have 100 to 90% of the active ingredients, maybe in the '80s

he said he expects to return to his communications and public affairs firm blackrock group. you can read more at politico.com. it's likely we will hear about the resignation during today's white house briefing scheduled for 2:00 o'clock eastern. we will take you there live here on c-span2. the director of national intelligence, dan coats and defense intelligence director vincent stewart testified on global threats and national security last week before the senate armed services committee. here is a look. [inaudible conversations] good morning the committee meets this morning to receive testimony on worldwide threats. we are pleased to welcome our witnesses and the director of national intelligence. out of respect for the scheduling commitments of our witnesses and unanimous request from our members, we will conclude the hearing at 1130 in the interest of time and to ensure the members of the committee will be able to ask their questions, i will be very brief. i know that comes as a disappointment, especially to the senator from south carolina. i would ask our witnesses to pl