of also hashe ideal ties to blackrock.e former chief of staff to blackrock's chief executive larry fink. in addition to briahna joy gray, i want to bring in kate aronoff, a staff writer at the new republic. her latest piece is headlined "the problem with putting a blackrock alum in charge of greening the economy" and follows-up on her story in june that asked "is blackrock the new vampire squid?" she is the co-author of "a planet to win: why we need a green new deal." kate, if you can talk about the ?hoice of brian deese >> sure, thank you for having me. brian deese has spent a lot of time in washington and a lot of time at blackrock. a lot of the talk about brian deese's nomination in the last couple of days is sort of rumors came out about him being appointed to nec, focused on if he is a good person, that he spent time in the obama administration working on things like the paris agreement and conservation work. i think like many of the a realsives who have put question about his record out there don't necessarily think

the final chart is a chart of blackrock and blackrock is fairly steep, uncorrect ed and too far above trend. so close around 695. today. >> thanks, carter. mike, how do you trade that downdraft? >> so it's an interesting thing. carter was alluding to the fact blackrock is the 800 pound gorilla of asset management. the biggest, arguably the best the valuation is trading a little under 21 time earnings. not hugely expensive there could be some margin pressures when you consider there has been preshsure on fees part of what has supported blackrock has been the strength of the markets generally that's good for asset managers as assets grow if the market is going to take a pause necessarily those that outperformed are going to pause as well. in general we are seeing elevated options premiums. i'm not inclined to short the stock but i believe it is probably going to hit the pause butt button i'm looking at the 710, 7 call spread, a $30 call spread. you could sell earlier today $17.50 for the 710s. net-net $9.50, $10 a third of a distance between the strikes. the break even would be up aroun

what you can see is that blackrock has outperformed the s&p. it is a beta trade on the market blackrock at this point is fairly steep, uncorrected and by our work too far above trend, too far above the 150-day moving average. we think you will get a downdraft. if you are long, take profits, and if you are in the short selling business, sell short >> mike, how do you combat that downdraft. >> blackrock is arguably the biggest and best 20 times earnings, not ujly expensive given their top line growth of 4 or 5%. there has been pressure -- of the markets generally that is good for asset managers. as assets grow, so do fees in general, we are seeing elevated options premiums. i am not really -- there is a $30 call spread. the high for the stock was around 7/18. net-net with this you will collect about $9.50. but notice the break even would be around the 7.20 level so the stock would have to break out to new highs if the stock trades sideways or falls, those are all instances where this trade would be profitable >> tony, what do you think of this tr

all the big money is going to vanguard and blackrock as usual.at is interesting about vanguard is they beat blackrock for the first time ever. what we are going to see going forward is a lot of consolidation. all the money going to them is stuff that charges less than 10 basis points. it is making the asset management industry difficult in the future, and you will see people term up -- team up and triy to buy advisors. total marketng -- etf's can we like this one. after the s&p come with think people might look to the total market funds more because it held tesla for 10 years. s&p 500 took the hint to their brand and they set the outflows as a group this year for the first time ever. big one of the other stockmarket phenomena we saw was the explosion of retail investors from individual stock trading, a lot of associated with robinhood. isn't market divergence of the mantra that had been slammed due to everyone's head for the last decade of don't try to beat the market, focus on low fees, etf's. does that freak more investors to think they can do

in november 2019, he told his master's that blackrock should be a chinese company in china. to his chinese host, it was welcome contrast to the hostility from washington. larry fink wears his china ambition on his sleeve. the chinese know it. well, it should disturb you that biden's transition team is right now scooping up blackrock senior employees. a recent bloomberg conference of irritating globalists, it was hard to tell the difference between what fink and the ccp officials were saying. >> the market is in desire of more stability. they are looking for a voice that moderates, not a voice that insights. i truly believe president-elect biden can be that voice of reason and is willing to work with the world on moving forward. >> we should build an economy that works for all. we must firmly safeguard the system under the wto and unequivocally reject unilateralism and protectionism. >> unfortunately, some marshes are acting against -- will walk away from the national commitments. >> laura: even the translators sound ominous. well, when he said multilateralism, what they all

again, we see a vanguard to kind of take on the big one here, which is blackrock, into the retail market. i think that will spill over into helping etf's. once brexit is sorted out as we look like it is going to be, it is only going to take away that uncertainty. that can only be good, specifically for u.k. exposure. outside domestic investor, you want to get exposure to the u.k. what is the quickest, easiest way to do it? logically, it is going to be etf's. people do not want to take the brexit basket risk. matt: what are the main brexit related challenges facing the services sector?is marcus: the e.u. understandably wants to take back control of its own financial services, which it has never really got its act together properly. the u.k. has massive advantages from languages, from its legal code, and indeed from the massive infrastructure. nonetheless, there is a real desire for europe to take control of its own markets. inflow, and ono a regulatory basis, europe is going to put some firmer rules in place to encourage investment have to do euro trades in europe, european stocks and bon

isabelle mateos y lago with blackrock. coming up hussein kenji. will tech -- i will check facebook on the break. this is bloomberg. good morning. ♪ tom: "bloomberg surveillance pickup we are going to deb -- ." there are 6, 7, eight tech stories right now and we are going to squeeze two of them in in the next 15 minutes. airbnb, hussein kanji joins us. i am thrilled that he is with us today because i think he is a very clear and sane voice and the hype. i think we can begin with the idea that airbnb is not in graham dodd, not in graham data and cottle, is not even something that warren buffett would understand from those iconic textbooks. when we take an ipo and we extrapolate out a value of a company, is that a legitimate valuation that we are looking at this morning of airbnb? i think that is broadly the question for almost everything in the tech industry right now. interest rates are so low, and that is kind of -- tom: i don't mean to interrupt, but this is absolutely critical. is it a constructed, manufactured, or manipulated scarcity? i don't

he was never a portfolio manager inside blackrock.lly a marketer, somebody that sort of pitched environmental investing parameters both to the company's portfolio managers as well as creating some investments for others, for clients, to invest in environmentally social conscious investments. it's interesting. they think, they question his qualifications as an economist, is essentially what i'm saying here, and they also say that if you are going to pick someone to be the nation's chief economist, it should be someone that really, that should have some background in that. brian deese's background, as i said, is in marketing, essentially, and in these environmental issues, not in investing. look at larry kudlow's record. look at gary cohn's record. larry was a long-time economist, worked at the fed, worked on wall street, had his own economics firm, was an economics writer. gary cohn essentially ran goldman sachs. was a trader before that. brian deese does not come with that type of background and it's raising eyebrows. people say this

now, that affects companies in blackrock's portfolio.y created the v-shaped recovery there. they want to expand that and we don't know what today's influences will surface in a new biden administration but china and blackrock will both be in the news. on a side note about this new administration, the president-elect has not picked any of the people who ran against him in his cabinet yet, thus not elevating any of them to a national stage over the next four years. the democratic strategist told me today that could signal the future of the party rests with vice president-elect kamala harris. we have to see who he picks today but again, tom vilsack, another safe name, also not someone who ran against biden in the primaries. back to you. neil: all right. thank you very much, edward lawrence following all of that. you've heard a lot about the vaccine, first one coming out in this country as soon as monday. people could be getting it. but who should be getting it? you hear about the vulnerable population, the elderly, those who work in the hea

global head of somatic and sector investing at blackrock, tic and sector investing at blackrock.ni strikes an optimistic tone for the second half of 2021. that exclusive conversation with matt miller. that's next. this is bloomberg. ♪ , they wereactivities reduced to a minimum. it goes by the pandemic. the presentation -- it has more of these coming up. for the second part of the year, we were much more positive for this attend part of 2021. >> that was the ceo of bugatti and lamborghini. let's get more with matt miller, who spoke exclusively to stephan winklemann. sounding pretty optimistic after lamborghini sales were under pressure this year. matt: keep in mind, he ran lamborghini for 11 years and step to 12 -- stepped away to run audi and then bugatti for the past five or six years. volkswagen put him back at lamborghini so he's just taking over again and this is a very social brand. lamborghini customers spend a lot of time together doing so covid has been tough. match 2020 sales next year at lamborghini but he's also still running bugatti, so he's running two brands and bug

of blackrock the largest asset management firm in the world they have 7 trillion dollars under management so you know larry fink is like an untouchable right like he's probably more powerful than the president and he said to mark carney this clip we look at it is something is real but it still untested it still is still has many . we have to go to many markets to see if it's really probably real or if it's going to be a variant of that sometime in the future lastly if it were any other time i would just say. how do you additional currency has real impact on the u.s. dollar because having a digital currency makes the need for the u.s. dollar to be a lesser role of that. the u.s. the and so on i'm not certain i'm not talking about 4 americans i'm talking about for international holders of dollar based assets the question i would raise and you know maybe there's a market i could talk about it doesn't change the need for dollar reserves as a reserve currency if there was a true digital currency that was there was separated from from dollar b.'s assets and other things like that so many questi

blackrock you know these are small that somebody like paul tudor jones coming out in march and april and now saying that he had bought bitcoin and then coming out again in september october and saying he likes to coin better at that time was 14000 then he liked it when he bought it at 4000 so then stan druckenmiller came out soon after and said he had started buying back wine and now black rock is also saying the same black rod. as you know is the biggest asset management firm in the world like it is this thing i mean it's not it 2020 was the year that the institution started to come 2021 if there's a flood of these institutions coming in you know this all time high that we just hit in december it's going to be blown away i mean even even citibank is is saying that they see bitcoin hitting 318005 december of 2021 you know what you're seeing of this you're right you're seeing c.t.s. get involved so nice guys are looking at church action volume in bitcoin has gone up significantly because people are starting to dip their toe in the water and that's why there's a lot of interest because

blackrock. and of course there are 7 trillion dollar asset management company able to have that because it can displace the u.s. dollar as a global trade unit of account now again this is an incredible statement where even 6 months ago nobody would suggest that larry fink utter those words and yet this very very rapid global learning curve has exploded on the upside but what do you think about this idea that they could replace the u.s. dollar as a global trade unit of account b j i think it absolutely will i i wrote an article called the bush case to be clean and i ended with a quote from charles de gaulle where he said we want to we want to reestablish the world as it used to be on the on of monetary base which is not controlled by any nation and i think across the world resent the exorbitant privilege that the us has in even controlling the world's reserve currency to last the u.s. to inflate away the savings of the rest of the world and benefit because of that and to fund the us empire. so i

sophie: yes, blackrock looking beyond the vaccine, the upswing.l rates will stay low, even in the face of rising inflation. blackrock upgraded stocks to tactical overweight with a preference for u.s. and emerging equities especially europe extra pound by going underweight europe. tech and health care care are favored by blackrock with select cyclical exposures. rishaad: thank you, sophie kamaruddin. ,he headlines coming through isdman sachs in china acquiring one hunter percent of a china joint venture. an equity markets on the mainland under pressure. we have fresh sanctions on individuals, from the u.s. taking place. we are heading for lunch in shanghai. this is bloomberg. ♪ breaking news. 100%an sachs acquiring acquisition of their joint venture with the securities firm in china. trip advisor in the crosshairs of what is going on in china in this back between beijing and washington. china cyber watchdog says they are removing the trip advisor app for legal content. we have not got any more details on that. it is a cyber watchdog mentioning this

so, you, you -- david: have two hats at blackrock. put some money to work here. given your situation, how do you view the world? what do you expect? what are the investment opportunities? where is it smart to put money right now? rick: it gets harder every day, every year. i think the equity market is going higher. listen to what the fed says, they will leave interest rates down for a long time. where the rates have gotten to, it doesn't make the treasury market interesting where the mortgage market interesting. when rates stay where they are, that's direct injection of value into equities for m&a, capex, r&d, etc.. create balance in the portfolio? hold some cash, hold some of your government rate risk, the government debt that you owe, in tips with inflation protection and then get yield on the portfolio. credit market, parts of the emerging-market and securitized market, gets a yield from a bit more cash as its harder to hedge the day and then open the equity market. i think equities are going higher. one of the stories of why equities are fully valued, people

marilyn watson from blackrock sticking with us. this is bloomberg. are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder, engaging the entire core. then it's the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. planks are the ultimate total body exercise. build your upper body with pushups. work your lower body with the aerosquat. the aerotrainer is tested to support over 500 pounds. it inflates and deflates in less than 30 seconds using the electric pump. head to aerotrainer.com now. now it's your turn to lose weight, look great, and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-t

so the flagship esg funds from blackrock and vanguard, those will look a lot like the s&p 500.hin those top holdings, you will see names like apple, amazon, facebook, google, each much those funds up about 20% this year. so we're roughly in line with the s&p 500 outperforming it a little bit but frank, the real strength this year has been in those funds that are more focused on specific areas of esg. so clean tech really an outperformer here. taking a look at the invesco solar etf shares are up more than 200%. the imomentum is behind clean tech and renewable energy specifically >> and very interesting stuff here thank you very much. interesting insight into esg funds. pippa stevens, happy new year. >>> still on deck, big tech stocks proving to be unstoppable. we layout whether tsector can keep the momentum going in 2021. >>> a live look at auckland, new you xi land. they will be the next to celebrate the new year >>> and let's get the latest from phillip mena. >> the white house says the president is returning to washington this afternoon one day earlier than previously planned

guest fromed by our blackrock. do you have any nervousness around the brexit process, what that does to etf flows? it speaks to nervousness around the brexit deadline. >> actually, in november, we saw investors slowly coming back to u.k. assets after a very long period of prolonged out floats -- outflows. almost 20% of u.k. equity strategies across actives and etf have seen assets -- a prolonged period of lack of interest starting to come back. going into this weekend, there was nervousness about potential accidents happening coming out of this weekend. it's clear that the real deadline is the end of this month and both sides are not going to walk away intentionally and that's why markets reacted more positively. manus: with the exception -- matt: with the exception of a little bit of movement on the pound, one cent in either direction, aren't investors already prepared for either outcome? are there going to be massive triggers pulled one way or another? wei: i would say probably not and the reason i say that is be

on these things, there is a lot to be desired in them in the goldman and blackrock examples and someare exhibit a of why these things aren't as great as their being touted. back to you. liz: thank you very much, things are changing, we watched the landscape change and we see what happens. up next buying fox, why today's countdown closer says the growth is in the rise of the robot. robot stocks, were talking about that when the closing bell rings in about 11 minutes. were coming back the dow increasing up 210 points, that's about session highs if my math is correct. stay tuned. ♪ in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. and sweetie can coloryou just be... gentle with the pens. okey. okey. i know. gentle..gentle new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. claim your seventy five dollar credit, when you post your first job at indeed

climate activists have condemned the picks due to blackrock's funding of fossil fuel companies, among other issues. joe biden is currently recovering from fracturing his foot while playing with his dog. president trump's efforts to overturn the election results appear to be exhausted as he faced a string of defeats over the weekend. lawsuits in pennsylvania were rejected, both by the state's supreme court and a federal appeals court. and a recount in two liberal wisconsin counties, ordered by the trump campaign, cemented biden's victory there. trump said for the first time he'll leave office if the electoral college votes for joe biden, even as trump refuses to concede the election, which biden won in both the electoral college and popular votes by wide margins. trump was questioned by reporters thursday over his refusal to concede, including by reuters white house reporter jeff mason, whom trump then attacked. >> between you people. don't talk to me that way. you are just a lightweight. i'm the president of the united states. don't ever talk to the president that way. amy: in may, tr

the recent conversation between the former bank of england governor mark carney and the ceo of blackrockis as a conversation between two bitcoin deniers, one of whom was coming to his senses, and it was larry fink who was pointing out the enormous interest that blackrock had been inkrecensing over its websites that's one demand call effect that's going on. companies are outperforming the market because they're going public with their exposure to bitcoin. at coin shares we've done research showing 4% allocation of bitcoin in the traditional balanced portfolio has interesting performance and benefits we've seen market wizards, as you mentioned, simmons, anderson all becoming interested in this asset class. so, yeah, there is definitely a narrative at the moment whereby this deceived career interest of having bitcoin in your institutional portfolio as a portfolio manager is fast migrate i migrating into a theorist of not having bitcoin in your portfolio. >> you're not going to get fired anymore if you had some bitcoin but you might get fired if you didn't that's a powerful thing. trillions

blackrock, the world's largest fund manager, came right out and said climate risk is investment risk.in: i don't think there is a choice between plan and profit. when you look at some of the esg wasti resourc part oft ethe -- it d the boom line.re y? well, th brings stight back i. >> screeng compaes for e critia has pven an fective y to antipate an avoid andals cable of wipi out sha prices.artin:so foe critia has pven an nuveen esg mutual fund hadn't hold volkswagen for a long time becae there questions around the gornanccompany.ure of the >> this allowed those esg funds to avoid the stock crash that followed vw's emissions cheating scandal. >> green companiesre also better prepared to face the growing threat of climate change. these factors are reviving the. sustainable funds are attracting new assets at a record pace so the real question, then, is not whether green investments can make profits. the question is whher th can be called green in the first place? marn: there certainly is a definition problem in regard to esg. the lack of a central standard is an issue. hauke so a company

s larry fink the chairman of blackrock the world's largest front manager came right out and said climate risk is investment risk. i don't think there is a choice between plan and profit. this in the extreme metrics that you're scoring companies on you look at anything or is this really any s.g. thing or is this just good business are you producing are you wasting resources or wasting resources back to the bottom line or that. bring it straight back into big business. screening companies for e.s.d. criteria has proven an effective way to anticipate and avoid scandals capable of wiping out share prices through for example in between mutual funds. for a long time because there were questions around the governance structure of the company. this allowed those e s g firms to avoid the stock crash that followed reasonable use emissions cheating scandal. millions of their cars with cheating software to make their. green companies are also better prepared to face the growing threat of climate change. to surviving the appeal of green investment. sustainable funds are attracting new assets at a rec

another big trend in the last year or so we've seen now big institutional money coming into becoming blackrock the biggest money manager in the world fidelity huge 1000000000 dollar operation which has found like halted or johns and you know these guys typically operate as financial mercenaries right they really consider the great moral standards. but they've got a lot of money now how is this going to impact because if at all to me institutional money coming in is is to be expected because i think they're seeing even they're seeing that the dollar is just crashing like crazy and they're basically burning money by holding it and they need another asset and this is pretty much one of the few places that you can go that that's not stocks or real estate i mean i guess you can go to gold as well but we know how fractionally reserved lended that is and so on so. the fact that they're getting in is not a surprise and it is predictable just using incentives and game theory i mean there somebody is going to have to get in 1st and once they are at their end then other people are incentivized to go in b

star general and then we're also seeing some people who had once worked at or still do work with blackrock coming on board so this is you know we'll call it business as usual for the corporate class in the corporate cronies that have been running the neo liberal democratic party for almost 40 years. living the program on the international criminal court has dropped an investigation into alleged war crimes by u.k. armed forces in iraq that's the spot the prosecutor having quote a reasonable basis to believe that offenses took place the court explained it's the sation by pointing to the fact that london had investigated the matter itself although probes into more than 3000 cases resulted in no prosecution. and that story after 6 years of what was called a preliminary examination of allegations of war crimes by the u.k. military in iraq the international criminal court says it's not going to proceed and so just before calling the british justice system one of the best in the world this is the way you case proud defense secretary reacts their statement today indicates our efforts to pursue jus

star general and then we're also seeing some people who had once worked at or still do work with blackrock coming on board so this is you know we'll call it business as usual for the corporate class in the corporate cronies that have been running the neo liberal democratic party for almost 40 years several senior democrats a voice their opposition to joe biden's pick for defense secretary the president elect name or time general lloyd austin on wednesday but as a point book explains it seems as concern often could still be too close to the army. not even his own caucus is happy with joe biden's choice as secretary of defense lloyd austin he's got. and that is great. well john you're right you very much at all since i retired 4 star general and that has raised a lot of lefty eyebrows. dozens ignore the longstanding tradition of having a civilian at the helm of the most well known clicked fighting force in the world america it's a great country we're drinking it is agreed so austin actually needs a special waiver from cloned grass to take the job because he only retired in 2016 he hasn't bee

of blackrock the largest asset management firm in the world they have 7 trillion dollars under management so you know larry fink is like an untouchable right like he's probably more powerful than the president and he said to mark carney this clip we look at it is something is real but it still untested it still is still has many . we have to go to many markets to see if it's really probably real or if it's going to be a variant of that sometime in the future lastly that we're running out of time i would just say.

morgan blackrock potter jones now stan truckin mellor you know they they've all started take a possession they've got in the case stan druckenmiller he's got a call physician now he's got a pick point possession so the institutional money same sarette the guys because it's value as a store of value and they are talking about inflation and how to cut and paul tudor jones us words because that would be the fastest horse in the race so. you know if rates are rising now that doesn't sound inflationary to me. you know what what's your take on this if interest rates are rising it doesn't sound inflationary here in the aca as it supports the dollar and then a rising dollar would be would be deflationary not inflationary well if you look what happened in the seventy's and mean you know interest rates tend to rise commensurate with inflation ok so this is this is not my is that we have been dry history of who was the who was the interest rate on zimbabwe. you know look what's happening in turkey so you know is there a sense or eyes of the it with rising inflation and real interest rates or the dea

and so i expect more of the same throughout 2021 that we saw throughout 2020 what's interesting blackrock who they biggest manage money manager the world something like 7 trillion they made the observation just studying their own flow of capital over their platform that money people are selling gold e.t.f. and buying big coin a.t.'s that this is something that the bakelite community we've talked about for years and saying that because they are valuable in gold in many ways and we kind of thought that that this would be the case but now it's actually happening you know you manage a platform and you've got all kinds of investors and many investors are also into gold and so how do you position this going forward is this an accelerating trend is bitcoin actually going to start eating gold at lunch and in terms of capital flows are going to dry up in gold is that really in the cards simon dixon no i think those would always be gold and big question will always be bitcoin to a very complimentary you say you know the wealthiest in the world who is used gold as a way of preserving their wealth of