vonnie: why did blackrock conduct the study?ng into insurance asset management given that some insurers are in such a ridiculous with the low yield and firemen. there's an opportunity to shift some of the assets into different type of assets they're not used to managing. blackrock is doing this as well as a lot of other asset managers. it's also a way for them to use aladdin. insurance companies have to report every single holding they have. and rock was able to go in model every asset against aladdin and see how the assets are performing in different scenarios. perhaps one of the most compelling ideas behind this was the 2008 scenario. the important thing to remember don't actually realize as losses unless insurers are forced to liquidate their holdings. vonnie: there are some fascinating statistics about that. the next year they were down to 18 billion. i would urge everybody to read that story. it is a fantastic one. coming up tomorrow on bloomberg markets, david westin will interview warren buffett. berkshire hathaway chairm

blackrock has said they like the value trade.y have said the market is too optimistic on -- and pessimistic on you take inflation outlook in europe. they think that breakevens will move higher. vonnie: what about looking at other markets? the cbs markets, we are at practically all-time lows. guest: it is a global market and all bleeds together, but we are seeing some growth improvement in europe, and inflations continue to be higher, the economy could pick up, that will leave to global growth for everyone. 70'sne is screaming 19 inflation here, but maybe the pendulum has swung too for the other way. vonnie: thank you to liz mccormick. let's take you to first word news. reporter: another blow to the u.k.'s economy. british consumers cut back on spending for the third month in a row. 0.1% from a year ago. inflation has been running faster than wage growth. -- this korea billionaire is accused of bribing a presidential confidant. he was drawn into the scandal that led to the ouster of president auction hey -- hei. there will be secr

why blackrock and vanguard are not following the fed's dovish lead. ten-year.he u.s.his is bloomberg. ♪ who knew that phones would start doing everything? entertaining us, getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. >> that is midtown manhattan. at bloomberg world headquarters in new york. i am vonnie quinn. let's get a quick check on the major averages. there wasn't too much movement earlier today. the dow up just point 1%. -- .1%. the nasdaq is up .4%, the leader today when it comes to movers. let's get first word news with mark crumpton. mark: the trump administration is encouraging more coal mining on land owned by the federal government. the "new york times" reports it's an aggressive push t

with me in new york is marvin haggerty of blackrock and ira, u.s.trategist and coming to us from atlanta is matt c.i.o. , at fixed income. iraq, let's begin with you. the theme is fostering a dynamic global economy. it's really not the sensing for an ecb president or shouldn't be, be the setting for a e.c.b. president to intervene in the currency market and do anything spectacular along those lines. ira: i think what mario draghi wants to do is play with the themes that have been talked about this conference wants to focus on, things like regulation and are there things the central banks can do to stimulate the economy. janet yellen took a little bit of a step back though she was pretty pro regulation, she also said hey, there are tweaks that probably can be done, because of the interrelationships of all of these different regulations might actually be hampering growth and maybe we should look into that and i think mario draghi might come from the same type of approach. jonathan: martin, for investors, how have you prepared for the removal of accomm

we are talking blackrock and vanguard. inflation is coming. >> they say the market is a little too pessimistic. they are very aware of what has happened. they are saying that now, maybe the bond market has gone overboard. future, overthe the next 30 years of 1.89%. that may be a little too much. >> why hasn't inflation picked up yet? always a story about how it is coming. >> it has not yet. >>>> they realize some of these -- cell phonetors coverage has gone down. there are a lot of cars rolling off of leases. they said that has dragged down some prices. the phillips curve isn't broken, it is a little lag where the unemployment rate goes the inflation rate goes higher. eventually webut will get to the second half of the cycle and it will build and. to haveesn't make sense this out in 10 years time. vanguard suggesting inflation should be? >> a lot of lives and vanguard and they are looking at models, they are looking at the economy and all of the other voices, those tenure breaking rates about two and a quarter. they will s

. >> good to see you >> when we come back, an exclusive interview with blackrock's mark wiseman he is force behind the shift from active managers to technology driven trading and later, capital management founder jamie dinen will tell us where he's putting nearly $17 billion to wk. icarnd "squawk box" will be right back. whoooo. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews. the lowest prices. >>> the summer rally the dow notches its ninth straight record close and the s&p closes at an all-time high we're going to take a look at the drivers straight ahead >>> rise of the machine. blackrock's global head of active equities joins us to talk about the firm's move to robots to try and improve stock picking. >>> plus an exc

blackrock on friday said part of the reason was because of shale.nterest rates was inflation. what drove the volatility of inflation was energy. be discountfting rate and you were shifting the interest rate dynamic with incredible force. now you have equilibrium in the world around energy. you have other forms that you can't have an inflation spike driven by energy. -- we what about that can't have an inflation spike driven by energy? it is part of: the explanation. i think technology is driving huge deflationary forces, globally. japan earlier. as adam posen said, they have thrown the book at inflation and they haven't been able to generate it. that withtells me is technology and demographics and the fact that the oil will stay, i see the oil that i'm not expecting a huge amount of inflation. but that doesn't mean they're not reasons to hedge against it. i want to bring in the expertise of a central banker. someone who has worked for the bank of england. what do you say to the fed when you look at these expectations? have been talking down the mark

obviously i share some of blackrock ishares,sly blackrock.it a war going on, and fees are falling due to the composition of your you need to have more asset management firm going. vonnie: that was me. john: i think a lot of what is driving it is people basically, desqueeze is to maximize the asset of your management. vonnie: what does guggenheim want? john: that is more curious to me because a lot of their fixed income funds that are managed have been doing very well and attracting a lot of assets. for them, it is all about asset gathering. angenheim is predominantly institutional money manager. they managed insurance firms especially, but also a lot of pensions and endowments and high net worth individuals. they have plenty of money under -- bigeim's big on rela. umbrella, money is a cell mutual funds the media's. sell mutual funds, the etf's. they have been some tensions with a management, and just last week, an investor out of relatede, k-1 ventures, that we want to redeem our investment in guggenheim investors, the umbrella parent of this

blackrock, vanguard group, and t.e price have lowered their ober valuations -- uber valuations by as much as 15%. they have faced a persistent drumbeat of bad news, on top of an ongoing seo -- ceo search. valuationeld up its as assigned to employees, partners, and prospective competitors that it is a transformational, once in a generation company. any evidence that uber may be less valuable that in appears may scare off -- less valuable off it appears may scare employees and shareholders. .ric: 15% cooper -- uber blackrock, just 1%. it's a useful sign, especially as this big softbank deal gets done and we don't know what the valuation for the secondary shares that are going to get bought, for people selling into that deal and people doing the selling, having these professional assessments of the company's valuation could give them a guidance. emily: that was my question. you've been reporting about new investor interest. is that happening at that $69 billion valuation? is it significant that the valuation would be fla

blackrock, just 1%.s a useful sign, especially as this big softbank deal gets done and we don't know what the valuation for the secondary shares that are going to get bought, for people selling into that deal and people doing the selling, having these professional assessments of the company's valuation could give them a guidance. emily: that was my question. you've been reporting about new investor interest. is that happening at that $69 billion valuation? is it significant that the valuation would be flat, rather than increasing? eric: there certainly is strong interest from the company and insiders to see the primary valuation stay at $69 billion. emily: even if it is flat, is that a good thing? eric: it's hard to say, you note i mean? given the -- you know what i mean? given the circumstances, a flat valuation is the best they're going to get. in the secondary -- in terms of what they are actually paying, netted out, it's going to be a lower value. emily: who is selling the shares, other investors, em

we have a very special guest, mark wiseman ahead of blackrock.the man responsible for bringing machines, more machine-powered issues to blackeblac blackrock. that's a big deal. they were announcing now $30 billion in funds are going to be managed. he is the special guest of our co-host this morning, kevin o'leary, our squawk shark here with us. >> he's there. >> he's already here, by the way. see, he gets in really early >> look at that! >> this is the other watch, with the other things, we're going to be talking about some of these things, too. we're ready to go, guys. >> obviously, a great lineup ahead here on "squawk box. you'll definitely want to stay tuned for that thank you very much, becky >>> still to come on this show -- the perfect economy, why the next guest says things are right where they're supposed to be tonight, be sure to catch "the profit" marijuana millions watch it here at 10:00 p.m. eastern. you're watching "worldwide exchange." we're back in a bit. i love you, couch. you give us comfort. and we give you bare feet, backsweat,

blackrock, vanguard group, and t.ice have lowered their valuations of uber by as much as 15%. they have faced a persistent drumbeat of bad news including court battles. this on top of an ongoing ceo search after travis kalanick was ousted in june. uber has held up its $69 billion valuation. they are a transformational, once in a generation company. the evidence that uber might be less valuable than it appears may scare off future investors. we are here to talk about their latest developments. >> the mutual funds marking down uber, 15% vanguard. blackrock is 1%. it is a useful sign. especially as this big softbank deal gets done, and we do not really know what kind of -- what the valuations of the secondary shares are going to be bought. people doing the selling, having these professional assessments, the company valuation could give them a guidance. emily: you have been reporting about new investor interest. is it happening at that $69 billion valuation? is it significant that they are flat and not increasing? >> ther

the imf, the economics professor at george mason university, and the head of chinese equities at blackrock i think the respondents hit a really, really good topic, which is the geopolitical or geoeconomic tension. i absolutely agree that things like productivity and debt burdens are a threat, but these are not things that were built up overnight. they were built up over a number of years, and to some extent we may even see -- let's say artificial intelligence, technology offset some of these concerns over the medium-term. i do believe that is the biggest issue to consider, the geoeconomic issues. that really brings us back to the unpredictable nature of some of these driving forces. for example, what's happening in north korea, what's happening in the middle east. a lot of unexpected things have arisen, and even with that aside, we still have all of trump's agenda in terms of protectionism and trade wars globally, which fortunately, so far, haven't really panned out to the extent he has talked about during the election. stephen: your views on the poll results? >> i think it is a mixture of

the imf, the economics professor at george mason university, and the head of chinese equities at blackrock i think the respondents hit a really, really good topic, which is the geopolitical or geoeconomic tension. i absolutely agree that things like productivity and debt burdens are a threat, but these are not things that were built up overnight. they were built up over a number of years, and to some extent we may even see -- let's say artificial intelligence, technology offset some of these concerns over the medium-term. i do believe that is the biggest issue to consider, the geoeconomic issues. that really brings us back to the unpredictable nature of some of these driving forces. for example, what's happening in north korea, what's happening in the middle east. a lot of unexpected things have arisen, and even with that aside, we still have all of trump's agenda in terms of protectionism and trade wars globally, which fortunately, so far, haven't really panned out to the extent he has talked about during the election. stephen: your views on the poll results? >> i think it is a mixture of

blackrock and vanguard theater only a matter of months before inflation is back at 2%.s bullard address this at a conference today. james bullard: we were telling a story that inflation was gradually going to return to target. you can see the gradual return to target seemed all be going according to plan, until we got this year. and this year, this number has fallen way off, at least on the scale you got here. this number has fallen quite a ways off. scarlet: earlier today, bloomberg " daybreak america's," on if they would take the same bet. >> i think ben cardin blackrock are right, and the central bank of america sees it coming as well. we just can't tell when. we can't ignore the data we saw friday. this is incredibly positive stuff, inflation has to come orioles we've got all this one wrong. the question is is it friday? the great thing for the central bank as they have until december to make a decision because september is out of the equation. david: you said there are robust numbers coming in, many more than were thought. at the same time, which pressure only went

way that maybe vanguard can't because they are pegged to an index and the same thing with etf that blackrocks. vonnie: john, a fascinating read. thank you a much. , theg up, terry hans senior political strategist, joins bloomberg tv to discuss the latest on the robert mueller investigation. a quick reminder -- you can catch all of our interviews on the bloomberg function tv . you can even go back in time. this is bloomberg. ♪ 1:00 a.m. in hong kong from bloomberg world headquarters in new york i'm david gura. welcome to bloomberg markets and the trump economy. president donald trump taken to twitter this morning at her the strong -- after the strong jobs report. can the president take credit for the state of the u.s. economy? and the russian investigation counselrward as special robert mueller hopes a list another grand jury to collect information. whateak with one analyst the latest news means for investors. we hear from him in just a minute. >> president trump pats himself -- we back after the asked economists what kind of credit the president deserves. anything on done economic policy

blackrock and vanguard said the market is underpricing the coming inflation impulse. markets european open. i'm matt miller in berlin alongside guy johnson at european headquarters in london. hard to get excited about whether markets are going. we have upped the ante a little bit. we are positive we are not up by much, a bite 3/10 of 1%. the market perform -- the cap performed well on monday. france is working with germany and others on the polls to allow come they giants to minimize taxes. that is the message from emmanuel macron's comedy minister. he gave the first international television interview since the election. >> it's always the same strategy based on a level playing field. based on civil's for everybody. when you are doing business in france or europe, he have to pay taxes. you cannot take the benefits of doing business in france or in europe without paying the taxes that other companies, french or european companies, are paying in europe or in france. the same rules for all the companies and for all the states. >> does that mean you want to lower it the c

in june of last year. >> that came from the robots or the humans at blackrock?e all been melded into one at this point. >> the singularity has arrived. >> she has an avatar. >> absolutely. >> she's flesh and blood, but also a machine. >> the point is we have a constructive view in and out just on the u.s., we saw a turning point. we were constructive on rink assets i understand what you're saying that there have been people more constructive post-election, but positioning-wise, people were already there. >> last word. >> the outlook for the markets, even without anything significant coming out of washington, d.c. is quite good. >> you would still put your money in emerging markets? >> absolutely. they'll do much more in the next 12 to 24 months. >> give me a couple. basically emerging markets away from china in asia, in latin america, all over the world >> okay. krishna, thank you you're sticking around. >> sticking around. >>> we're going to go inside the mortgage numbers justreleased and also talk home builders after the break. >>> later, president trump defen

blackrock says we are too pessimistic., and it come a little bit more than we perhaps anticipate. would you go onside with that? there is a late buildup in inflation, and the bond markets are complacent. that is what i want to know. our job markets complacent? complacent?arkets tim: it is hard to know where it is going to come from is wage growth is still this low. skeptical.le bit there was a lot of over-pessimism put into u.s. breakevens say a month, six weeks ago. now, we're in a nice equilibrium level. ask you see inflation being that much of a problem for the fed. it will keep them being very deliberate for the next year or so. that is hard to know where pressure is going to come from when you have the influence of technology, pressure on commodity prices that we have been talking about, with opec over the last couple of months in commodity markets. so it is hard to -- for me to see where that is going to come from. manus: are you still long u.s. equities with conviction? tim: we have actually been underweight for som

we are back with richard turnill of blackrock and alberto gallo of algebris.your self -- does it have anything to do with trump trade? chart -- this is what we are looking at overall. central banks have talked hawkish. there is a chance we will try to likeinate another exit they did a couple months ago. the key is to understand which central banks can hike rates and which central banks are bluffing. the fed is ahead of other central banks, but it is still behind the curve. however, their chances of continuing to hike depend on fiscal policy. the lower trump approval gets, the tighter and lower u.s. treasury yields get. because that means less delivering on fiscal reform and less fiscal stimulus means a more dovish fed. so we are skeptical on trump to deliver tax reform and on the fed to hike. but market expectations are already low. so we are not going along u.s. 10 year treasury. steve -- seehat we is still strong growth. there is also the issue of running out of bonds. there are no more bonds the buy in germany. so at some point, they have to taper. uffer of

tickets for the annual event in blackrock desert in nevada sold out in minutes back in march. the bureau of land management issued the permit yesterday. that will allow artists to begin putting together all the giant sculptures and artwork. the theme this year is radical richual. it all begins august 27th. >>> why are you still pointing the gun at me? my hands are right here. >> a bay area police department responding to this video of one of its officers pointing his gun at a couple in a car. >> i got the heat tracked. we'll talk about how hot it's going to get in your neighborhood as we head in to tuesday. >> fine art at your fingertips. how a museum is bringing some of its work to your cell phone. ♪ what should i watch? show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. >>> a federal jury today found three police officers liable for beating a construction worker during a police stop in 2015. the jury awarded paulino $50,000 more than his attorneys asked for. th

we are back with martin lueck, chief investment strategist at blackrock.ring from junkball. how dangerous is it for these exporters? do they need to look to their politicians for relief or are they still looking at the european central bank? martin: i think it depends on where you look. if you talk to somebody from l'oreal, it is not a company where the demand is quite elastic. people in china are not buying l'oreal products because they are cheap in euro terms. chain of the product range, this is the same kind of question. you need to look at it more from a regional perspective. strong euro is much more of a problem in southern europe where you have issues with competitiveness. that it will play out that the euro in the longer term will probably move to the trajectory where it was before the old disturbance and distortion. i think we are pretty much there. the largest part of that appreciation is now in the price. having said that, it is very important for europe to get back on track. more spending on investment. that is certainly one of the contentious i

among them, blackrock ceo larry think who said he resigned following his conscience after the president'sn charlotte bill. -- charlottesville. agreed the fmoc inflation will gradually rise to the 2% target but many fear it will stay below that level for longer than expected. the decision on balance sheet reduction was deferred to a later meeting. the reserve bank of india governor pushing commercial banks to cut borrowing cost to boost investment after a final rate reduction for a while. he and his deputy voiced concern over inflationary pressures and warned that could overwhelm private borrowers. the r.b.i. closed -- cut its rate this month. the u.k. employment rate fell to 4.4%, the lowest since 1975. earnings picked up 2.1% in the second quarter, slightly ahead of estimates. that has implications for the economy and the boe, acting on a drag -- as a drag on spending. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. wery: let's get more on what should be watching is trading gets underway in

rivals fidelity, blackrock and sharl schwab cut to meet vanguard.uckley says he continues to plan lower fees, quote, across every product. buckley also says vanguard is pushing to grow outside the u.s., a move that should help decrease fees. that is your business flash update. joe: and a little bit of breaking news crossing the bloomberg. the u.s. has submitted its formal intention to withdraw from the paris climate deal. you recall earlier in the year, donald trump with that rose garden ceremony talking about how the u.s. will withdraw. now the formal communication to the u.n. has been sent. the statement does say that the u.s. theoretically is open to re-engaging in the deal if the u.s. can, quote, identify terms that are more favorable to it, its businesses, its workers, its taxpayers. but for now the word is, plan to leave. scarlet: one of the things the trump administration was up in arms over was the fact that the u.s. will be contributing to a fund to help those developing nations get more green. they saw that as a bad thing. joe: and didn't

blackrock and vanguard say the markets have this wrong., as i said before, seeing an environment where all of a sudden demand picks up and global demand except so much that that will drive inflation. as you pointed out, 2% is not exactly a big number. 10 years, 15 years ago we are being tooout 3%, 3.5% much. we are very much in the safety zone here. francine: we will be back with all of her porsche -- oliver pursche and kevin logan. coming up, a conversation with st. louis fed president, james fuller. this is bloomberg. ♪ ♪ francine: this is "bloomberg surveillance." i am francine lacqua with david gura. there haven't been any better investment this year than hong kong. -- oliver pursche and kevin logan are still with us. oliver, that me talk to you about passive investment. how much does that disrupted the markets because there are few players out there can market there is a big movement, this can get exacerbated plea. oliver: that speaks to the narrow leadership in the stock market around the world. a lot of indexing, a lot of dps with m

pablo still with us is goldberg of blackrock.of the respective parties yesterday, it felt of the united states was saying we have to have a really big change -- having around the edges. canada and mexico was saying we don't want anything fundamental. pablo: if we go back to what was said before about china, it applies to nafta as well. think about this number -- every vehicle that mexico exports to all the countries mexico has an agreement with the u.s. does not -- all of these vehicles go with a zero charge to another country has 40% in the u.s.. wages in the auto sector in mexico are five and change, where the u.s. is 23 and change. is a very goodp partnership for the u.s.. posturing, and they will go technically to the numbers. in this case, it is also going to work for the u.s.. it is about marketing -- how you present it to your base and make it work. david: but the president has taken a stern stance, saying we're going to change it fundamentally. can mexico give him whatever concessions might allow him to declare victory fo

get used to those your stocks.ing vanguard and blackrock are 13% owners.l funds are a minority owner of the stock market. there are still plenty of people buying and selling stocks based on what the ceo is doing, based on the fundamentals. vonnie: even though they are --julie: even though they are passive investors, do they ever sign-on for changes or do they just told back? >> they have groups called corporate governance groups. i did a whole study on this. they vote with activists sometimes, they annoy ceos sometimes, sometimes they are with them, they seem pretty independent. everything is long-term value. they want to create the environment so the long-term company can flourish. activists are more specific. our active managers really the best owners of stocks? they are definitely more focused on short-term quarterly owning's than they are long-term -- on long-term value, you could argue. you could argue this both ways. julie: we've got to get a paul singer debate going. it is the eighth big-name hedge fund manager to talk about passive and raise concer

still with us is jeff rosenberg of blackrock and mark to shinny -- and mark.productivity numbers that just beat last month, as opposed to last month. they are also up from 0%, so there is a little bit of daylight. alix: unit labor costs up just 0.6%, but you had the previous reading revised up a whopping 5.4%. this is the whole deal. when do labor costs squeeze the margins? this is the number. david: this is interesting. jeff, let's go back to the cpi numbers. what happened to inflation? our expectation is we are still in this poker where there is downward pressure on inflation. outlooker-run inflation -- the fed is talking about this as a transitory story. for the market, it is hard to look forward. our forward forecast, about 12 months out, you get back to 2% levels in terms of inflation. but the near-term trajectory is downward pressure. that is a bit of picture on the fed, on markets, work it expectations -- market expectations. we keep theis that line in terms of wage inflation, labor costs, the impact on productivity. what we saw on average hourly earnin

and you have the blackrock product that will go less international, but a little further out in durationtake more rate risk. and in the guggenheim product says will have the lowest duration, but we will take more risk and have a little more high-yield in their. -- in there. again, all the duration is within a range of that half a year, give or take a couple of months. so, these products are liquid and have no gates. likemoney market investors they can get in and out whenever they want. their $40 billion in assets. julie: over the past couple of days, as we have seen buying in the treasury market with rates coming down, and these are seeing is a relatively place to be, with a be taking in money from a lower stock environment perhaps? >> that has typically been when they have done well. they have just gone opposite with money market funds for their yield. but money market etfs have committed -- the money market etfs are those that people have committed to. julie: thank you very much. we will be right back talking about that. . ♪ vonnie: live from bloomberg world encoders in new york and lo

they appeal in selling stuff to consumers, jpmorgan, blackrock sells mutual funds. and those pension fund investing for average people. blackstone owns la quinta hotelshotels -- hotels where peo to vacation. the average person looks at donald trump's statement different from his fringe supporters. gerri: there is a lot of former people in the white house make their own calculations that they might decide to move on? >> gary cohn, there was some rumblings he was annoyed. he was the former number two at goldman. he was annoyed. steven mnuchin annoyed at the statements. but they are staying with it. they don't run companies that have to appeal to a lot of people. they are in the white house. the question is if the president keeps going on this track and we get another one of these and another. when do they say i'm done. here is the thing. the anti-fascist left are bad guys. they are really bad, they are violent. we know that. and we called them out on this program and others. this rally was perpetrated bid neo-nazis. they went -- they showed up with torches that emulat

. >> later this morning, blackrock's cio of fixed income, rick rieder will join us "squawk box" wille right back. ♪ cameras. introducing the newly redesigned gla suv. at a price that'll make you feel like you've gotten away with something. the 2018 gla. lease the gla250 for $359 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second. get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business. built for business. >>> stocks to watch today. twitter downgraded from hold to buy. jeffries says twitter will lag behind google and snapchat when it comes to digital video, which he calls the biggest opportunity across social media over the next few years. >>> ulta beauty. can i buy a consonan

for blackrock, having an altar chief hedge fund is paying off.he style advantage fund more $1.6doubled its assets to billion in the first half according to an investor documents in by bloomberg news. the fund charges less than 1%, making it one of the industry's cheapest. daimler, and volkswagen will fix software on more than 5 .illion diesel ours -- cars b the companies a german government reached the agreement at an emergency summit in berlin. separately the german carmaker has been sued in the u.s. for acting as a cartel. sharedges the trio technology information and stifle competition from 1996 to do at least 2015. qatar air will not invest in american airlines, claiming the move quote, no longer meets our objectives. qatar says it will continue investigating other opportunities in the u.s. and elsewhere could the american called the move, quote, puzzling at best and quote, concerning at best. still ahead, senator marco rubio pushing for a harder line on venezuelan president nicholas maduro. why he says oil sanctions could be possible. that's

earlier this year, blackrock the world's largest money manager announced it is laying off dozens of humans the financial industry, artificial intelligence its expected to replace 230,000 human workers. bring on the disruption that is automation. >> the chief information officer at goldman sachs, the company now hires as many computer engineers as financial workers. >> during the movie wall street they would have been barking, buy, buy, buy. >> now, clic, click, click, type, type, type. >> see the famous goldman sachs trading floor, a quarter of these people aren't traders, they're coders. writing soft ware to automate the routine grunt work of employees all across the company. someday could software replace the functions of these folks? >> great question. i don't think anybody knows the answer. >> all right. we get it. no job is safe. according to one recent study, 47% of a can jobs, could be lost to automation, in the next 20 years. martin ford says it is team to start thinking about what we are going to live on in the post robot economy. one of the best ideas out there is some kind of a

you're seeing firms like blackrock, vanguard that manage trillions. the way they are going to win is to build scale. i could sense that eric was pressing him on what's the catalyst going to be for things to change. if you have any indication of what could cause markets to turn. >> he talked about geopolitical events. we never know what could happen geopolitically and you could see a big drop. right now over the next six months through the end of the year he didn't see a real big in terms the markets of a big drop. peggy collins. coming up, tensions at a fever pitch with north korea. we will have the latest on that and the relationship between north korea and china, next. this is bloomberg. ♪ bloombergcome back to markets: the trump economy. focusing on a notable stock you need to watch this hour. tenet healthcare. down 11%. the biggest drop since february and the lowest level this year after that company reported earnings that missed expectations. renick joins me now. >> there's one thing you don't want to do as a company on earnings day. not only mis

he doesn't want to be blackrock. he doesn't want to be vanguard. timesld rather have 15 $10 billion that i can manage rather than $150 million. he would rather keep his clients happy and keep himself happy by not over expanding and not getting spread too thin. he is talking, at times during this interview, about hitting old. i don't know if this is like him entering late middle-age and reassessing his whole life, but it is an interesting change and it could also be fund flows have slowed and maybe it is just put a pretty picture on something that is not quite as pretty as it is." vonnie: john, very important to read the story written by your team and also our own erik schatzker. thank you for joining us. let's get a first word news update with mark crumpton. mark: u.s. secretary of state rex tillerson visited thailand today. he met with the foreign minister in an effort to shore up relations with america's southeast asian ally and urge it to maintain pressure on north korea. u.s. official to visit since the nation's military seized power from an el

regarding the charlottingville violence campbell's soup johnson & johnson, united technologies, blackrock, ge, saying they could no longer in good conscience support the president on that front. he got a statement from the forum that was drafted just moments ago that in part said we believe the debate has become a distraction from our well-intentioned and sinre desire to aid vital policy discussions on thousand improve the lives of everyday americans. as such, the president and we are disbanding the forum job creation and supporting an exclusive pro-growth agenda remain vitally important to the progress of the country. we should know in addition to the manufacturing council and the strategy & policy there was a third council assembled in june, ce american tech council, met with the american office of innovation, to figure out how the technology sector could move forward with the government. i'm told by executives invited to those meetings, it was never a formal assembly, there were no follow-up and no meetings scheduled since then for that reason there's nothing to resign from, because it

korea aerospace rising after blackrock increased its stake in the korean defense company to 6.5%. --ne of the poorest performers. i was missing some of the store earnings we are seeing in the hong kong and china space. we are waiting for the four big banks that are reporting on wednesday. you can see them all on this chart. this redline is what you see here, the hang seng china enterprises it all four of the big banks trading below that index. also trading under price to book value. we're waiting to see if they return some strong dividends to shareholders like the energy companies have done. anna: juliette saly joining us there from singapore. the latest on what has been happening in houston. this landmark event, the storm to storm to hit the united states since 2004. they are dealing with incredible levels of flooding in the united city.'s fourth-largest we have a chart that shows houston gasoline spread flying. this is the into we are seeing at the guess market. this spread into something of a story for the us economy as a whole? a big test for president trump. brzeski.ng in carste

and blackrock talking about what is happening in the economic story in the states.ne in three, fascinating. interesting new model from tesla. matt: still, that is the second day running that story has been the most-watched. recommend viewers going to watch on tv. next, we will drill down into bp earnings after a beat, but it beat at a lower bar and a concern about debt. this is bloomberg. ♪ ♪ 7:44 in london. how will bp open this morning? second-quarter numbers beat the estimates. but analysts have been sharply reducing expectations for the company over the last couple of weeks. it is a lower bar. meanwhile, bp debt continues to build is cash flow is unable to cover cap ex-dividends and payments linked to the u.s.-gulf of mexico oil spill. joining us now, will kennedy. good morning. is that a fair characterization? yes, they are a beat, but they have been managing expect nations. -- expectations. >> it is good news, they are them a condosh but payments continue to be a drag for bp and it is starting to differentiate them. we had a fairly up each .tatement from shell

blackrock's hedge fund is paying off. $1.6 billion according to an investor documents seen by bloomberg charges that less than 1% makes it look -- one of the country's cheapest. that is your business flash update. according to the new york times, the justice department may investigate and possibly sue colleges and universities over affirmative action policies it believes discriminates against whites. the college admissions expert .oins me from los angeles great to speak with you. clearly, nothing has happened yet here we are just at the early stages. the notoriously take a lot of time. what kind of timeline are we ultimately talking about? >> it could drag on for years if they do investigate and bring a lawsuit. i think the doj is neither confirming nor denying that this is taking place. we do know they are hiring that kind of expertise and interest internally. it is very likely something is coming down the pike, but it will be there a while before it goes through the system. >> what do you tell your clients who might be over the next five years. how do they prepare for this or do they

blackrock and vanguard group have all lower their evaluations by as much as 50%. struggled with lawsuits in recent months. the chief executive officer was ousted in june. the companies did not respond to requests for comment. bill gates and two more are investing in a clean, unique startup. they produced beef and chicken without water. they have raced $22 million so far. cruelty demand from free food. that is your business flash update. coming up, how have managers been faring this summer? we will show you the charts. from new york, this is bloomberg. ♪ julia: this is "bloomberg markets." the past two weeks have been next to no volatility. julie gave us a clue before the break. oliver: julie, you jumped the shark. just kidding. goode know it has been a year for active managers. it has been a rough couple of years the start of the bull market. i want to revisit a chart i love. this is based on goldman sachs mutual fund picks. blue line is looking at the top of the stocks and mutual funds that are overweight and. thee is the one they are -- ones that are underweight

we have rick rider over a blackrock. do you think that lack of inflation is a reason to be treasury heavy? >> we have had five inflation prints. so, every bond investor will it knowledge that. itn you look at structurally, inflation is likely to be lower, not higher. the key question for treasuries is we still have this emergency level of military policy. does that look suitable for an economy that is probably going 3% to 3.5%, in the cawse of the u.s.? anna: you can use that argument to argue that we do not need to pay too much attention to gold prices, where we have seen a surge. we have had paulson, and others, talking about appetite. but they have been rewarded if they have been holding gold recently because of the geopolitical tensions. moreinvestors are concerned about geopolitics, then they are that interest rates are going to change. >> i think you are right. it's just that, though. it is effectively a hedge for those environments. manus: it is a magic moment really, for tesla. in terms of dieselgate, battery par

blackrock vanguard group lowering uber valuations by as much as 15%.pany has struggled with lawsuits and boardroom battles and the ceo was ousted in june. the company did not respond to requests for comment. bill gates, richard branson investing in a startup called memphis mea-- which will producets animal cells not with slaughter. analysts say there is a possibility of sustainable cruelty food, especially from millennials. wholeld foods -- the foods deal needs approval from regulators. the $13.7 billion deal with amazon is expected to close before the year's end. and that is your bloomberg business flash. fascinating story. self generating meat. abigail: as a cruelty free person i do not know how i feel about it. time now for our stock of the hour. la-z-boy, the committee known for the recliner is falling over 20% today, the most since 2009. emma, what is going on? emma: poor earnings. full disclosure, i do not think i am the la-z-boy customer, but i did read today that some of them to have a drink cooler and a heat system. joe: absolutely. i used to

blackrock, t.there were valuations by as much as 50%. ber gyrations by as much as 15%. 50%.luations by as much as -- 15%. --r says the 69 value it billion dollars violation shows it is it was in a lifetime company. joining us is our detroit bureau chief. as we look to reduce the evaluation, are all the problems that uber is facing affecting the number of people using the service, or just a issue of reputation? >> both, investors by a management story and travis is out. he was seen as the visionary. but theydifficult guy were willing to put up with it because he was there is one must character -- elon musk character . they still do not have a permanent ceo and investors do not know who will run it. that is part of it. have pretty they big losses, negative margins of 35%. a $700 million loss or close to $800 million in lost. that is a big hit. investors expect that but do not see them having a return yet. the business is growing but you have seen cuts and how investors view this business. lyft, gener

rick, how do you think about that theme and what it means for you at blackrock?the world may be the largest issue. closest tohe shark the vote for markets but it is this dynamic that will play out for years. up -- iet rates move don't agree with the thesis of inflation -- the discounting rate is choking pensions and you created dynamic that is a problem. -- thisrward you need demand for income will be persistent, for fixed income will not go away for a long time. there is an interesting construct, when equities go up, pensions have to rebound and it forces more money into fixed income which is incredible. the demand for fixed income is not a near-term -- some say near-term, we are not going to much higher rates because of this dynamic. not just the u.s., it is much more prolific in japan and europe. jonathan: people think we need higher rates but it may not be the solution. have you think about higher rates over a goldman sachs? >> are fixed income team is expecting a rate increase in december. upthink inflation will pick and create the environment for one to rat

the money managers join several asset managers, including from blackrock, who advocate the strategy followingck market surges. craft is banking on oprah to boost sales. the food giant has tapped winfrey for a of soups without artificial flavors. position as a stakeholder at weight watchers have helped that company turnaround. securing naming rights for the stadium that houses the washington wizards and capitals. monumental sports and entertainment company, the deal takes effect immediately. that is your business flash update. julia: still ahead, the technology market close. south -- north korea sparking a flight to safety, sending gold to an eight week high. ♪ we check our phones 85 times a day. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save