where is blackrock on the debate right now? bob: tricky question. the loan market has been a good place to hide. the front and of the yield curve in general offers a margin of safety now. 2.5% to-your notes that 2.5% notes seem fair. relative to the high-yield market, i think that is a trickier trade. i would rather talk about what we are going to talk about next. relative toitch loans and/or high-yield. i don't have a strong opinion about the relative to high-yield that the structure. jonathan: i know, mark, that you do. where does it still play out, mark? mark: i think it is a function of the actual fundamentals and when you are getting paid for them. we looked at spread vs. turn of leverage. it is surprising we can even with the compression we have seen across the leveraged loans, still 73 basis points. from the fundamental standpoint, you are cheap, although it certainly tightened a lot. we have gotten the rate dynamic that has been helpful, and will continue to be helpful. you look at the expectations for the hike in september and december. our

you guys at blackrock have been ahead of the curve on this.ig push higher, and how things would rotate out of elsewhere and into the front end. have we seen the bulk of that play out yet? bob: we are in the early innings of the marginal unit of capital coming into the front end of the yield curve relative to where it has been allocated over the past several years. the bulk of capital that sits in longer-duration assets, much of it is for regulatory purposes, and it is not going to switch into the front end. the marginal dollar has started to become attractive in the front end of the yield curve. in short and businesses as well as the flow into our funds. jonathan: we were looking at charts during the commercial break and hopefully we can put one of them up. performance of various asset classes in 2018 so far. you jumped on the one chart that pointed out it has been a duration story across much of the price action we have seen year to date. can you explain what we are seeing? bob: this goes back to the point we made at the beginning of the show

where is blackrock? bob: we think the fed is moving. colleague on the clip earlier said, we think it will move up to four times this year total. we do not think they are going .uch above 2.5 the market is priced for a 2.5% terminal rate. the gap in the dots. the market is a probability weighted pricing mechanism so it includes probability of higher rates and lower rates. the long-term mutual rate in this country is under debate. there is a fiscal policy impulse that is kicking in likely to impact growth and inflation for the next several quarters. , wehe overall medium term just don't think rates are going as high. jonathan: do you agree? robert: i see them going higher. they had the scope. perceivedget to a day to be neutral, the onus of proof will rise. you are in a world where less people are thinking, two or three of these are not high interest rates but around the world, rates are low. after being as high as 65 basis points, we're down to 20. we are in a low interest rate world. i think that will slow them down. once you get to the

what is late cycle to the team at blackrock at the moment?late cycle is a really challenging debate. economically, with unemployment rates below the natural level of unemployment, that would suggest that we are later in the cycle. it as we also know based upon history, that does not change until something disrupts it and it is subject to change a lot. financial markets strike us as reasonable valuations in fixed income, likely to get a little cheaper. but not by a lot. risk assets are kind of reasonably valued, but the growth trajectory is the harder question. piling on fiscal policy at full employment is not exactly the prescription we would have suggested. it creates -- we think it creates a larger risk of kind of a boom-bust scenario where things look good for the next several quarters, then the lack of organic replacement demands could create this operation risked their we had is a tricky environment. but the fixed income market is reasonably priced for the balance of outcomes. jon: i want to wrap things up with tricky questions. the rapi

what exactly is blackrock saying here? adam: key for blackrock is that you're in a phase of u.s.tightening against the backdrop of australian central-bank neutralization and an unwillingness to want to raise rates down here. so is that gap continues to grow, with u.s. rates nudging higher and australia firmly uphold, there continues to be downside pressure on the aussie. before you getis into a situation where any time of care of starts to impact the economy. as you say, blackrock is kind of growing, joining a growing number of asset managers across the board who are kind of --ting incredibly more incrementally more short on the currency and expecting further declines. , it a look at this chart shows the extent of how much pressure there has been on those speculating shorts that are now going next. ,emember, just six months ago we were struggling around why the aussie was so resilient and why people were continuing to ont those leveraging plays further gains for the aussie. how much of a change that's been the last couple of months, as you're seeing more and more people betting o

the head of emerging markets at blackrock is with us.you ascent selloff we have seen in assets? is it technical? >> yove to see the context. in qt, some trough has to be cleaned out of the had the vix blown up at the start of the year and treasuries going hr, on top of that, paris and emerging markets nothing happened and every thing was fine. it was thanks the -- to the dollar that was weaker in the first quarter.as soon asto t coming back on monetary policy divergence, emerging markets. have to reprice as well it was a place that people invested in emerging markets to see if they would buy the picture on social media. i appear better on sociaan in re same. this is what i call the true beauty. now we get to buy emerging markets for what they are. this means you got to go to repricing, you have the tide mo out, there -- you know who ours -- who is good or bad or evil suites a constructive place to invest. mark: you say there is some ugly, problema appearing. let's talk about the ugly column. who is top of the ugly column n?esti paperst o

still with me is robert it, mary bowers, and bob miller from blackrock.get your thoughts into next week, some concerns after that stellar payrolls report, that we have to think about the fed going four or five times this year. what is the message not to fear the fed? >> one is the bond side. as bob alluded to earlier, this is a less liquid, later cycle environment. at this point of the cycle, typically the fed is moving the long-term yields have stabilized, but at the same time, your equity volatility tends to go up when the progress of the equity markets slow down. we are looking for a recession, but as get closer to the end of the cycle, the equity risks will be rising. is not the pessimism way to go in terms of long-term fixed income. we are not at 1.5 on the 10-year note. jonathan: how do we know where we are in the cycle? people talk about late cycle. what is late cycle to black rock, are we there? >> that is a challenging debate. economically, with an on a floating rate below the natural level of unemployment, that would suggest that we are later in

still with me is jim keenan from blackrock, oksana aronov from jpmorgan, and krishna memani.a, i want to begin with you and talk about what we are seeing in rates. the story with the ecb and the fed, they are worlds apart in terms of their guidance for interest rates. how do you expect that story to evolve in coming months? oksana: it seems like they are a couple years apart. it seems like the ecb is where the fed was a couple years ago in terms of guiding toward the end of its bond purchasing program. i mean, the ecb continues to guide. the end of the program is on track for the end of the year, and with over $8 trillion in negative yielding debt, it is unclear where the demand for those bonds will come from. we got a taste of that here in the u.s., and the fed is not even yet in net negative liquidity mode yet. and there is a lot of focus, i think, way too much focus and way too much noise around how many more hikes the fed will do this year, what will happen with the flatness of the yield curve, etc. i think the most important thing that is happening in the bond market, ha

i want to ask you guys when you think about blackrock as well cutting fees on the etf.atement saying price changes reflect ability to use the scale ofck's platform to create efficiencies for clients. mike, we have not talked much lately, but this continues to happen in the etf space still. >> yes >> and blackrock big enough they can afford it. >> fees going in one direction big guys like this use scale advantage and vanguard is really the unspoken kind of price leader when it comes to this, obviously, run as a non-for-profit, cutting fees -- not vanguard, but the prevailing unibond exchange traded fund, they slashed fees, and probably because vanguard wants to, so i think the lesson is, investors are getting the basic building blocks of a portfolio at app extremely cheap level to the point yoshouldn't worry about it >> it's basically free >> yeah. i mean, for all intents and purposes, the difference between 12 basis points and 7 is probably not going to be missed -- i joke, you have to have so much money for that to make a difference for you that it does not make a diff

john -- jeans, from blackrock stays with us.ack, devising measures to prevent a flood of steel imports. and we talked a little more trade from the canadian angle. and don't miss our solicitor interview with the prime minister of greece. we bring you that interview from 2 p.m. london time. this is bloomberg. ♪ francine: this is "bloomberg surveillance." let's get straight to new york with the bloomberg business flash. seller ofld's biggest liquefied natural gas is investing $20 billion in america's oil and gas field, at a time when rival u.s. exporters are also expanding. speaking to bloomberg, the ceo of qatar petroleum says the investments will be made over five years and spoke about his partnerships. >> the time between qatar and the u.s. and the partnership they have with us as companies is very solid. this whole partnership is going to survive until the mid-20 30's with the contract we have in place. and we are growing. well-known hedge fund managers have joined a growing chorus of investors, predicting an end to the rally a

hansbrough from blackrock. this is bloomberg. ♪ .e: the ministers are said to hold private talks before the opec agreement but can they find an agreement? the trump administration is split over whether to restart rade talks with china. and airbus threatens to pull its investments in the event of a no deal brexit. good morning, everyone. this is bloomberg "surveillance." tom keene in new york. we look at trade and brexit and opec as we're expecting the ministers to finish meeting shortly. our reporters to go in the scrum on the latest of what was decided. tom: like a rugby match there seems to be attention there, not the usual meeting. of course in america there's only one topic this morning and that's the nation's debate on immigration. francine: immigration we'll go through significantly and look at the split in the white house with a great bloomberg story on that. also coming up, the chief investment officer for blackrock and is an expert when it comes to commodities at 5:30 a.m. in new york in 30 minutes from now. let's get straig

blackrock was upgraded to buy from neutral at city. the analyst says that blockrock is well positioned in changing industry and far ahead of its key peers in technology. price target, $610. that stock rose a fraction to 527 .54. still ahead, is your smart phone tracking your every move even when the tracker is turned off? 50 google is investing million in jd khat com. this rampsp the rivalry with amazon while giving it a bigger footho china. for jd.com it allows ilt to start selling pducts on google shopping. speaking of which, the investment from ggle turns out to be an historic day for jd. m jd.com. the company say record sales during its mid year shopping festival. we have more tonight from beijing. >> google is placing a 550 million betr jd.com and the reason is what's going on behind me. i'm at a jd facility here i beijing that's using automation and high technology to sort 600,000 packages a day. now this is a but time, because it's a busy shopping holiday in china. this year, the company broke last year's record, clocking a 40 i

. >> back in 16 blackrock ceo larry sink sent a letter to 500 ceos urging them to stop providing quarterly earnings forecasts. so should companies provides investith short-term guidance? whore joined by william lee says, no, not always and another gentleman w says s, companies should. gentlemen, nice to have you here. a pleasu. rahan, i'm going to start with you. i think mr. buffet and mr. dimon id out the reasons why perhaps you should not provide as a ceoh t-term guidance. briefly tell me why you think most companies should? >> there are a number of reasons. firstf all, let m point out that most ceos would prefer to put out asittle information as possible. they would prefer to put out only what's required andotng more, but the reason they give earnings guidance, which is notr re, is because the investors demand the information. and investors are telli corporations that if you don't give me earnings guidance, if you don't disclose the informion, i may not pay as much forour stock. and that's the same thing as cost that the company' of capital goes higher. now this isn't a key issue for a

still with us, rupert harrison of blackrock and john norman of jpmorgan.you look at how europe can integrate after we saw the fear that italy stoked? is it that italy could turn eurosceptic? there are various angles. john: there are. what is the likelihood the italian government puts in place irresponsible fiscal policies. if you look at the campaign platform, you seem almost 100% guaranteed of that. if you look at how quickly the government seems to change its big open so there are questions about the way this goes. the near-term issue is, what is that going to look like? how do they fund this? does it have an impact on ecb? spanisha spread between and italian yields. rupert: the ecb would be happy to see market pressure on italy as long as it is not systemic. there clearly is going to be a big conflict over fiscal policy. short-term, they backed off a bit. the one thing that was really toxic for markets was this idea of somebody leaving the eurozone back on the table. that has been put back in the box. things have cooled down a little short-term. there's

first, is blackrock's larry fink the new conscience of wall street as we head to break, check out theoints. stay ted u're watching "squawk" on cnbc your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital. >>> welcome back to "squawk box" this morning take a look at some stocks to watch. tapestry, the company formerly known as coach rated buy from goldman sachs. it sees strong growth prospects for both the coach and kate spade brands also microsoft getting upgraded. saying microsoft has successfully managed its cloud transition and at&t announcing the acquisition of appnex

for us within blackrock, we look anna: managing that balance and. do you think this is something with the pboc is having to stand away from the crowd urges they want to go with the flow? reasons toots of allow the currency to cheapen. there are reasons to not do so. someone said that this is not a very deliberative mode to weaken the currency. this is just reflective of lower growth. these are all very interrelated. to suggest that the chinese government does not understand the movement of the currency would be misleading. they obviously want to be part of the cheapening that other currencies have had to the u.s. dollar. anna: but no more than that. >> exactly. they don't want to spark any outflows. in toade issues are tied emerging-market weakness. they allowing to cheapen as much as they think is possible to stimulate the economy but not trigger outflows. it is hard to say what level would be the anti-flame. nejra: i was showing a chart that was showing the emerging markets selloff inequities in that it had been much more intense in china than in

of blackrock staying with us.loomberg interviews at 7:00 p.m. london, 2:00 p.m. in new york. this is bloomberg. ♪ is is bloomberg. ♪ in: "bloomberg surveillance" london and new york. bloomberg radio here in a bit. right now, let's look at the financials. single best chart. i went for the drama. european stock index, deutsche moo doesn't talk about individual stocks. re deutsche bank down 70%. other financials are week as well, even in the u.s.. i have been constructive on financials for a while. tom: you are never coming back, right? >> of course i'm coming back. how could i not come back for you and francine. the under performance of banks feels unjustified. big day today. we are expecting more capital return out of banks. that should lend some support. massives been this disconnect for good reason between u.s. banks and european banks, and both are critically important to brought indexes. for european banks was one of the reasons why we downgraded european equities earlier this year, basically saying without the

we will speak to blackrock.of compliance, when it meets regulation, what wrong does the blockchain play? welcome to "bloomberg markets: rules & returns." i'm nejra cehic. we delve into the regular challenges and opportuniti

blackrock that to focus.closing 16 exchange traded funds after introducing artificial intelligence products. rah's fortune climbs to $4 billion. david: joining us now is jason kelly. talk to us about this hedge fund. it is the largest in brazil. >> your guest just before we came over here, was talking that being cautious on brazil. these guys should have been more cautious. lost almost 15% since april 30. to use a technical term, they got whacked. to your big existential question around hedge funds right now. david: hedge funds, i thought you didn't take risks, but these guys are betting. itau has aingly, hedge fund in our asset management unit. they made the opposite call, not short brazil but cautious and contrarian on a growth story. they were up 8.3%. they went the right way. julia: betting the right way. and we have this story. they went short on tech come along on value. whacked is the technical term? it is interesting because this has been a theme in 2018. can hedge funds stage a comeback? 2017 was a r

let's head to our guest host this hour richard turnill from blackrock. >> good to be here. >> if we werehe year to date chart, you'd see we're kind of stuck at this level. why are we stuck here? is it trade or is it something else >> so uncertainty is increased you have great earnings, great economic data, particularly here in the u.s but the market simply hasn't been prepared to put a value on that the reason they haven't been prepared to put a value on it is the certainty about future growth and earnings. trade one important part of that also it's about the implications of fiscal policy in the u.s. uncertainty of the higher oil price. and uncertainty about europe all of which contributing to a market that's in a range but still supported by those positive fundamentals. >> when you say uncertain about the price, are you talking about what multiple to assign to earnings >> that's exactly right. you've seen earnings pick up but they haven't put a multiple on you've seen valuations steadily improve this year particularly in the u.s. but also the rest of the world. the market is placing a h

we will hear from blackrock's head of emerging markets debt on turkey's future.l as a surprise rate in india today. this is bloomberg. ♪ caroline: live from london, i'm caroline hyde. vonnie: this is "bloomberg markets. go we are learning more -- bloomberg markets. we are learning the wilbur ros'' trip to china for trade talks. it's below the $200 billion the u.s. has been asking for. on deadline for u.s. tariffs $50 billion in chinese goods is said to kick in a week from friday. we are joined by bloomberg's trade reporter in washington, d.c. the technicals are getting confusing at this point. where do we stand. on the china fight a lot of moving pieces and a lot of differing opinions. the president make the final decision. the offer that wilbur ross came back from beijing with. theou do the math and see contract the chinese proou get 25 bifall short of the 200 billion and on the 100 billion it earlier that the u.s. was seeking. now the white house said on monday they are getting debriefed for the delegation that went to beijing and are looking for a path forward

in blackrock's instance, it is a view premised on two things. .irst, increasing tightening separatelyfact that the chinese economy was already slowing even prior to any of these latest escalations in trade. as the chart shows on the bloomberg terminal, this is about much more leverage funds stacking up the bets against the aussie. perhapsk is saying -- it could even go further than that. aussie in a very tough point. ramy: something like that was about one year ago in 2016. bloomberg's global markets editor, adam haigh. don't forget to check out our library for some of the chart you just saw adam feature on gtv on your own bloomberg terminal. says the trump administration's terror threats against beijing makes sense as a bargaining strategy and probably will not bring about a devastating trade war. he told the editor in chief what he learned from doing business in china. lloyd: the whole thing with china is a lot of frustration. sudden aggressiveness with u.s. policy. but anybody who transacted with china appreciates the potential to have good experiences and frustrating experiences.

i think commissioner bridges has some prior experience at blackrock. that's a great connection. >>> 30 seconds. >>> she's shown a lot of interest in investment issues based upon the huge number of travel requests she makes. i hope that she speaks a lot more frequently in board meetings in the future, thank you. >>> thank you. any other members of the public that would like to address the commission under general public comment? seeing none, i'll close general public comment. mr. secretary, next item. >>> action item approving the minutes of the april 11th, 2018 retirement board meeting. >>> why don't we start off by calling for public comment. any members of the public that would like to address the commission regarding the minutes from april? seeing none, we'll close public comment. is there any discussion among the board regarding the minutes? >>> from the april meeting? >>> yes, from the april meeting. >>> i know staff spent a great deal of time editing and re-editing and re-editing the minutes to reflect accurately what was said. the subject matter

is sayingf blackrock it is time to hold companies accountable.e wrote a letter to all of the big companies out there saying look you have to be over about your social purpose. here, whethers facebook let go of its social purpose in this whole data scandal. many might argue that he did not because they still brought the world closer together. that is their purpose. that is their mission. sure they were pretty poor with our data and they have apologized but were they really against their mission? still to makeis money in the shares are at their highest point ever. they have completely rebounded and then some. are they cutting off their nose despite their face? he admits it. the guy who is managing this money is saying look i realize this is financially painful but i need to walk the talk. sure, the rest of the investor that the have seen advertisers don't seem to mind too much the fact that the user base has not left them. they are sticking with them. going forward we continue to see facebook react to this regulatory impact as well. that will be a

. >> another area is from the likes of blackrock and becoming much more vocal from what they expect to you think there is a disconnect between the interests of some of the biggest money managers and the smaller retail investors that your -- your group represents question mark as i do. look. this goes back to some the earlier questioning. they were using management of assets to pursue some type of local social agenda they didn't agree with. they really care about it. >> the retail investment typically has less time and less means to actually exercise voting power. they actually enable retail investors to have more of a voice and do more when it comes to voicing concerns. >> it is a work in progress. is important for us to work together to figure out how should we move forward? is there a way to provide a greater voice to retail investors? there are some ideas, proportional voting for example has been thrown around, it is something we would consider. >> working progress rather than a silver bullet for now? >> precisely. >> thank you for joining me. back to you. for thatank you conversati

this is a chart we came up with someone something that who works on blackrock was talking about, ande said we are not seeing valuations anywhere near inflated as relative to the rest of the market as they were during the dot-com bubble. informations&p 500 technology, no more than 13% above the s&p 500 this year. you can see it has been trending below that level for much of the past decade or so. he is not concerned. , so aak premium was 166% far cry from that. finally, energy stocks the worst performers today, oil just above $65 a barrel but down by nearly 3% on can learn about a split within opec about whether they will use production or not. also, many oil and gas drilling in the united take up 3.1% month over month, and we are already at quite high production here. more drilling, more production. vonnie: not a quiet summer friday. julie, thank you. president trump moving ahead with tariffs on $50 billion worth of chinese imports. beijing says it will retaliate. if china trump says does, he will impose additional tariffs. the administration of the movies response -- administration'

. >>> meantime, blackrock is in talks to buy minority steake in eurizon. >>> and rent-a-center has decided it's no longer for sale. after wrapping up a lengthy review, they say they didn't receive adequate offers. they were pressured to sell by engaged capital which owns 17% of the company. >> nobody wanted to buy at this point? >> that's right. they didn't want the option to buy. >>> still ahead, we're expecting to hear from secretary of state mike pompeo at any minute. he's in singapore setting the stage here for reporters from around the world we'll bring his comments live when "worldwide exchange" returns. >>> good monday morning. 5:30 on the east coast and 5:30 p.m. in sing ga for where we're awaiting any moment to hear from secretary of state mike pompeo he's in singapore for the summit between president trump and king jong-un. the first time the sitting leaders of these countries ever have met we'll bring you the secretary of state's comments live as soon as they happen. >>> sounding off on trade. the president launching new attacks on canadian prime minister justin trudeau followin

for theand even exporters, with blackrock making the call we could be seeing $70 for the aussie dollar would be a boost. reporter: there's no doubt. any drop in the aussie dollar would be good, and good for australia's economy as well. yvonne: ok. we will leave it there. our asian equities reporter in sydney. let's get more on what we should be watching as trading gets underway in asia. adam haigh. outside of australia, we are talking about a lackluster set up for equities. tech is the one place finding plenty of buyers. reporter: it is. it's remarkable when you think about it. the u.s. equity market is becoming a bit of a haven with everything going on with an escalation in geopolitical tensions. the u.s. tech market is , asively outperforming em lot of it driven by tech, the outperform or, even though many people had doubts a few months the case oft in facebook, but the overarching idea of increased regulation and a tough sector to be. it is already being priced massively on a forward basis. the fact that you are still getting gains in tech, even after the run-up we have had so far t

will guide us through that getting us up to the jobs report that will be kate moore joining us, blackrock'sity strategist austan goolsbee and michael strain will join us. we'll talk about the numbers with them, and the tougher trade talks, what it could mean for the jobs picture down the road some people are looking for a 3.8% unemployment rate could be a historic morning. what you were talking about, it being a sweet day, national doughnut day nigel travis will be joining us from dunkin' donuts to talk through things, and we suspect he'll bring doughnuts. we suspect that because we kind of asked for it andrew has a habit every year -- >> i've heard. >> i've seen >> last year i think he ate 8 fwlaz e glazed doughnuts, that's 2,080 calories we hope today he will go for a new world record you have seen nathan's famous? joey chestnut will be here this morning in the guise of andrew, we hope to get double digits >> we will be watching becky quick, thank you very much for that look. there's still a lot ahead on "worldwide exchange" including the countdown to that big jobs report like becky menti

with us, richard from blackrock and larry hammond. does the pound move today or just on boe?arry: the key drive is actually political risk around brexit. we saw it and move on expectations that a deal could be done, and that political risk was declining. we have seen it falls are in recent months. the dollar has been stronger, but also concerns about brexit. the votes today is not critical. but it is increasingly the case that the base scenario is one of the uk's leaving the eu, but there is a lengthy transition deal in place. i think that will keep uncertainty on the agenda. i think that keeps the pound relatively low. francine: this is my longer-term chart that i brought. what happens to the pound on the back of the votes today and scenarios we can see from brexit? richard: picking up on -- up on that point, i think we are looking at the dollar rather than the pound. , ite look at eurosterling is exhibiting the same kind of movement and reflects uncertainty. may,raphrase theresa brexit means we will get back to what brexit means, nobody knows what it means. even today's vot

. >> blackrock is not having a problem right now. so i don't know that when we say financials it makes sense to just look at xlf given how many others there are >> if you don't even have to say xlf and just pick a bank because it's so heavily weighted >> you can also look at agree realty which is a reit that has a great business model it's walgreens, has all the drugs. >> what i'm hearing on the desk is i can buy everything but the big banks. >> no. what you're hearing is that you have to be select i have aive at look through what an etf is identified >> give me one big bank right now you would buy. >> jpmorgan. >> if i were investors, i would buy every share of citi and b of a so i could get out >> your point is well made that it's broader than sector money banks. but look at the market caps of the big money center banks and throw in goldman, morgan stanley. tallying up in my head, that's about a trillion dollars of market cap it's an important part of the market just based on that size that needs to start performing for this market

is that because it is difficult to change a company when the likes of a blackrock or vanguard have 5%t matters. >> active is it is difficult when prices are high. it is hard to criticize a company, telling them that they have had a great run and haven't done a great job. activists are going to play dual roles. he takes solid positions knowing market.is a boy at -- i think that activists have the ability to shine a light on a siton that may be out of sync and create value that way. i am not sure that -- there are companies where it is -- where the whole is worth more than the sum of its parts. >> i have one more question in regards to this. do you look back and have any regrets bearing in mind how it has performed sense? >> hindsight is 2020. we have learnings our whole careers. we created 5500% 34% compound return for 15 years. it was a great run and a great company. the learning for me was i'm going to do a deal where it takes a lot of paper, if i did another one i would have a lot of influence after taking a lot of paper. hindsight, our shareholders direa lot of the company bdidn'a

mean, i see it as a subject for the bit to look at for general sis semiystemic risk aro example, a blackrockrd big in the area, what are you measuring? no capital to hold against it. just a matter of saying, can an instrument be too unwieldy for a market to handle in a stress situation. >> what do you think, sandy? >> i like we scaled back, dodd-frank stress tests and that sort of thing. look at the 35 banks that went through it, $1.2 trillion in capital, and i think they came through okay, but i'm a big fan of capital markets and putting the burden, which is what congress wanted to do, put the burden back on the banks rather than, you know, having the government really handle it, so i'm a fan of deregulation. >> a lot is also for pr, right i mean, if the banks were to blame for the last crisis making the stress test public was an effort from the fed to show we're on top of this, and the system is healthy, and they are not bringing us down again, right? >> exa >> exactly every crisis is different each time it pops up. plug the holes from the last financial crisis, inevitably, another crisis

chubb or traveler's down, regional banks like pnc, big sectors in there, and financial services like blackrockall drifting a little bit lower. it's a little bit disconcerning at this point because it's not just interest rate concerns. it just seems to be a lot less interest in the banking sector in general i think this hopefully reverses once we get earnings, gets them in the second week of july, andand i think you find loan growth is better than people expected. that's my bet right now. >> we have, of course, the peak or second round thursday, so could tap out nervousness ahead of those as well the dollar as well, bob, because in general, of late, the dollar pulls back a little bit, but today, there's been a little bit of strength. >> 5%. dollar index up 5% in the last quarter, a notable move. you see here it's been a little sideways recently, but i expect you're going to see a lot of companies come out and talk about that dollar trend. we heard it from red hat, oracle, several companies we've only had a dozen so far reporting for the second quarter. >> there goes the bell, bob, thank you ver

capital one, blackrock, and morgan stanley just a few examples of that. of course, we have got the ongoing correlation there in we have a look at that of the bloomberg, which year measures the s&p 500 inking index in be versus the 10 year yield in white, just eyeballing it you can kind of see the moves together here, particularly lately, where initially with there was some sort of lake up in both and of a are both seeking a bit of a leg down on the day. we are also watching stocks today because china has made a change, a surprise policy shift by the government tatens to cut demand for panels. beijing has basically said they will stop approving some new plants this year and curb financial support for projects. this is the second day of trading after china made that announcement. bank of america and merrill lynch downloading first solar to neutral from buy, saying that there is margin deterioration risk because of the move in china, we are watching u.s. companies like first solar and these chinese companies that trade in the u.s. down nearly 6%. vonnie: tha

kkr,street firms like blackrock, and wells fargo are leaving the financial district and move along thet side rail yard. for more in the state of office leasing, let's bring in mary ann tighe. welcome. we love talking commercial real estate in the city. dying to know where we are standing pricewise. mary ann: as you lead with hudson yard, what we are seeing is a very dynamic market right now. last year was the second-highest level of leasing ever in new york, 28.5 million square feet. the peak was 30 million square feet. inare way ahead this year terms of leasing over last year. we may break the record. that said, everything has shifted on the island of manhattan area people are looking everywhere from the battery all the way up to what will soon be harlem. as a result of that, pricing in midtown has never recovered from its peak. whereas, the number one submarket for commercial markets in new york is midtown south. the space between 30th street and chamber street. downtown is at an all-time peak as well. what we are seeing is a shift in how people occupy space and also how they have co