george soros slams blackrock for pouring billions into china.ge in the world's second-largest economy as trade withstands new outbreaks and foreclosures.

george soros slams blackrock for pouring billions into china. exports surge in the world's second-largest economy as trade withstands new outbreaks and foreclosures. germany's engine stalls. the global supply crunch threatens the nation's recovery. we get the survey on economic sentiment later this morning. bitcoin faces its biggest test yet as el salvador becomes the first country to make it legal tender. welcome to the european market open. evan :00 in london. mark is with us in singapore. good morning to you. what are the markets saying to you? mark: good morning. it has been a quiet session in asia. that big question that you lead the program with. is china investable? soros says no. china trade data was good. that has led a slight positive bias to an otherwise quiet session. toward the end of our lunchtime, we did have the rv monetary policy decision and they proceeded to taper against the consensus which was the other bit of excitement here but otherwise, the follow-up is relatively quiet. anna: a few things to pick up on in just a moment.

blackrock responded to the criticism, fox business followed up and blackrock told fox they think theytirement crisis when we know the communist party wants to overtake the united states as the number one super power, how about worrying about national security issues for america, blackrock. >> we know what's happening, u.s. firms are going over there for profits, blackrock and other financial providers are being given the majority stake in these firms in china. so the question is, maria, why. why is china allowing this as you asked me. and here's the reason why. because we're going to wake up one morning, maria and the chinese government through one of their banks -- and as you know, when you look at the top 50 banks in the world, 14 are chinese, including the top five. the problem is, you don't know where the bank ends and the government begins in these chinese banks. because the communist government is so intertwined in these banks as well as every other chinese enterprise. but we're going to wake up one morning, maria, and the chinese bank you through their government is going to pe

tom: blackrock and your team say you are pro-risk. you mince no words about it. how does this affect corporate thinking with a higher yield regime? with steepening of the curve and on and on? how does progress come to corporate action? jean: the path ahead for equities and risk assets is getting narrower. you look at the chart of the s&p . you start in january 2020 and look at it. this does raise questions. i think we are going to be an environment where markets will be more primed to look at risk, but in that environment we still think the fundamentals are constructive for the time being and as a result that is where the probe risk is coming from. lisa: how concerned are you with what is going on in china with what some people are calling and increasing energy crisis, especially as the regulators try to clamp on fossil fuel usage ahead of the olympics? jean: the broader story in china is the direction of travel, the greater role of social objectives, politics over economics. we should all of knowledge that. however, we have seen a very steep decline in activity

and this after a financier called a china investment a tragic mistake and now we are seeing blackrockblic monday's ahead of schedule. people familiar with the situation say entered a close is meant to start investment and the september 10 deadline was when it was meant to be closing. shery: breaking news around lbs management. the activist hedge fund has a more than $1 billion stake in citrix systems. the what the software company to take action to boost their lagging stock price, according to people talking to the dow jones. elliott informing citrix it has a stake of more than 10% that they want to work the country -- work with the company to improve you asian. haidi: -- improve valuations. haidi: japanese stocks on a seven-day winning streak, the nikkei touching $30,000 for the first time since april. we will see if they can do that today, and perhaps at the close. it is partly an index rebound but also adding big hitters to the nikkei 225. there is also optimism a new prime minister will bring in favorable business and economic policies. our next guest says he remains overweight wh

to talk more about it let's talk with blackrock's global allegation fund portfolio manager.lways good to have you with us. when you say fiscal -- well, let me start with the top line here and that is that september is turning into as historically has been true a somewhat negative month. any surprise for you that stocks are struggling as they are >> not particularly. you know, tyler, as you said september is one of the months where seasonality does matter. it tends to be true in the u.s. and most markets outside of japan which is having an exceptionally good month i think we had a lot of crowding coming into the month. we've had two softer economic prints in a row, the cpi, the non-farm payrolls and people are taking a little risk off the table. if you back away from the day-to-day numbers, i think the reality is it's still a very strong market, very accommodative monetary policy and stellar earnings we would still be a buyer on weakness our expectation is by the end of the year stocks are 4, 5, 6% higher than they are today. >> let's talk about those three items that you cit

blackrock is leading a foray into china's asset management industry. reportedly studying and expansion of the stock program like you the mainland and hong kong exchanges along with improvable's -- along with improvements to the shanghai london. he also said china is studying whether it can accommodate spac listings and direct listings. one of the front runners to become japan's next prime minister is reportedly to step -- reportedly planning to step aside. the former defense minister will not run for the leader of the liberal democratic party. he is considering throwing his support behind a former foreign minister. the military junta that seized power in any says it plans to establish a unity government and is urging mining companies to keep operating. speaking to members of the toppled administration, the colonel reassured mining firms their agreements would be honored. he says curve feuds have been lifted in mining zones and ports remain open. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and

blackrock head of global fundamental fixed income strategy. china will deal with it.: you make a really important distinction. equities are amorphous, there is some actual transaction. possibly could be cleaner for the chinese government, by no means only experts on this. they were off to bring buildings down like dramatic videos we saw, will they have to clear out banks and merge and consolidate >>. >>do we have to assume a lower growth rate with those issues? do we rethink some of the core calls. people getting comfortable with the european long. do we need to rethink those positions? >> what they need to do these keep net exports strong and that maintains a relationship for those boats coming across the pacific. jonathan: on any given morning i hear a lot of people who want to get into europe. they take on that cyclical risk. kailey: that also was the call coming into 2021. it changed a little bit in the middle part of the year. they are turning an eye towards the other side of the atlantic. jonathan: it is fed decision day. full coverage later. tom keene, kailey l

you heard from george soros and blackrock. what do you see in fund flows into the chinese credit space, and what are clients telling you? tatjana: on the credit side, and reflecting what we are doing in china, i can tell you it has been 12 months or so that the better quality part of the chinese market, a huge credit market, was not issuing as much. the government tried to get companies to issue more within china rather than nationally. there was less opportunity to invest. you have the riskier part, that is currently in turmoil and mostly reflected in ever grande. it looks very likely that company is defaulting. probably with the help of the government, so it is not too disorderly, but it looks like there will be a haircut, and they are not paying the coupon, so that constitutes a default and has bigger implications on the broader chinese high-yield market. tom: is that an entrenched view on exposure in china, or is there an element you would have to see to change the dynamics to allow you to get exposure? or is it an area of

plus george soros criticizing blackrock's china investment this week calling them a tragic mistake.le bass will give us his take on that very debate in just a few minutes >>> here's a check on bonds. yields moving lower today. 10-year around about 1.33, 1.34. "closing bell" back in a couple. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> 32 minutes left in the trading session. all the major averages lower, although off the lows of the session. let's check in on shares of general mills jumping after updating its guidance. that company says its fiscal year 2022 earnings in organic net sales will be toward the higher end of the range. those shares higher by 4%. goldman sachs also downgrading universal health to sell from neutral cutting its price target they cite cautious guide asbesance for that stock >>> down 4%. time for a cnbc news update. rahel solomon has it >> new orleans has lifted its nightly curfe

amongst those coming on board our microsoft and blackrock. bill gates spoke to erik schatzker.t we've got founding partners at catalyst, companies that care about climate and even beyond getting rid of their own emissions, are helping to support the projects that will reduce the costs making things like aviation fuel or hydrogen. and so it's not just their missions that will be impacted here. as we take this over $1 billion in capital we already have -- and that's just the start -- and fund these projects -- we're going to bring these costs down so that all companies and all countries will be able to participate in using green products. so i saw this as a key element. i first went to satya nadella, then seeing how out in front larry has been, i went to him. the two of them encouraged me to get a group together now. we've got five other companies who are leaders in this space announcing substantial commitments. we start with over $1 billion to help fund the scale of projects that will bring the costs down. and there's a lot of leverage here because there will be government money

george saying today that blackrock's china question is a tragic mistake that poses risk to client moneysecurity. here to break it down is leo miller. let's start with maybe some of the more economic perspectives of this with the export orders. do you see that as sustainable? >> the reason people are so surprised today is there has been a narrative that china is slowing down dramatically and the economy is in trouble. that was never true. investors like to grapple on a particular narrative. the stock market is in pain. authorities are panicking. i think we see the slowdown narrative is very much oversold. manufacturing may have plateaued. services has significant weakness in certain parts because of covid. there are problems. i think the idea that the economy is weak is wrong. it is a lot more stable than the current discussions. guy: what do the import export data tell you? the rest of the world is booming. europe is looking strong. the u.s. is looking even stronger. china from that perspective is looking good. inventories need to be rebuilt. domestically, the picture looks different. c

blackrock rethinking the return to office plans for u.s. employees.argest asset manager said the spread of the delta variant calls for a different approach. blackrock telling employees haven't decided when they want to see them at their desks, at least a few days a week. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> they are rightly wanting to get back to business. they want to do so safely. they realize employees and customers want to come back and the best way to make sure happen safely and without further interruption is to require that their employees get vaccinated. now that the vaccine is approved, one formally approved, it makes it easier for businesses to make that decision. jonathan: the senior scholar from new york city. good morning. your equity market looks like this. affording losing streak into friday -- a four-day losing streak into friday here yields high by three basis points. -- into friday. yields high by three basis

billionaire weighed in with a new oped calling blackrocks's investment in china a huge mistake.f the potential crackdown. >>> we'll check out shares of cyber security firm, ironnet, surging more than 50% and this after a 23% gain, about 48% right now. a 23% gain on friday the stock has been a subject of a number of discussions on reddid and i spoke with general keith alexander after the spak merger and public market debut and asked if the company had enough cash >> we raised 137 million from a guy from the army, this is a lot and that givlgs us for the next 18-plus months we need raise it with less solution i think that's a good thing. know some of the companies regretted not coming in, especially when the stock rose i think that's an art fact of the amount of float. we have a tremendous opportunity in the future of cyber security. i'm a huge optimist in the area. i know there's a lot of work i won't kid you. we have a lot of work to do as a company. >> so, that was ironnet, sticking with the cyber space overall, quantum technology company opening for the first trade, following

we are told that blackrock said that beijing must have consistency and transparency to build confidence. a big night for streaming services at the emmys, netflix won best drama for the crown. the queens gambit got the best limited series award, and apple plus's ted lasso won best comedy. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. juliette: -- this is bloomberg. manus: thank you very much. a snapshot of u.s. equity market risk. the evergrande implosion on the equity price bearing fruit on risk of sentiments. u.s. futures down three quarters of 1%. the tail is wagging the dog. also, you got to contend with a debt ceiling as well, and rate decisions go lower this week, many closely watched. risk banking kicks off on tuesday and wednesday, the bank of japan, and then we turn to the fed which might if clues on tapering. would it be brave to taper on an evergrande? dani: thursday, attention on the bank of england. on the same day, decisions from switzerland and norway. a lot for markets to digest

you have blackrock and vanguard. state street is a distant third. invesco is fourth.ll in terms of assets under management. if you put the two companies together, you would have a larger number and perhaps more competitive in number. state street has other as pdr's, and invesco has the qqq, one of the biggest etf's behind spdr. you are talking about putting together fairly large companies in this industry. invesco has not even managed to keep up with state street over the last five years. about a year ago, you had an activist investor step in, which is now the fourth largest holder in the company. a year ago when they disclosed their investment, he was talking about how invesco needed to get bigger to compete with the likes of blackrock and putting it together with state street, you would have a bigger organization. that really shows up in terms of numbers when you look at asset managers globally. state street number five on the list. it would fall to number three when you add in invesco. alix: thank you very much. active versus passive conversation is going to be com

tom: jeffrey rosenberg from blackrock. thank you so much.berg emails with a great observation. 750,000 jobs a month -- are we just being too impatient? the fact weinberg goes out eight months, the rest of us are looking out one weaker eight hours. michael: what is driving everybody's views is the bond market because the bond market is reacting to what they think the fed is going to do in terms of tapering. does tapering matter? not that much. they will still be stimulating. the $120 billion a month is not doing anything to increase jobs. that focuses is perhaps a little misplaced. 235,000 would've been averaged during the pre-pandemic period. tom: have you ever seen a central bank so exposed, so data dependent to wait and wait and wait? michael: we have not seen it because this is a new reaction function for the fed. they change the way they look at things. they want to run the economy a little hot and pull inflation up and unemployment down. we will see how that experiment goes. without a lot of jobs comparatively, how does the fed react? l

blackrock ahead of ishares. this is bloomberg. ♪ ♪ guy: the s&p flat right now, the nasdaq down a touch. morgan stanley cutting its recommendation on u.s. equities. the reason? outside risk to growth. ritika gupta digging into the details. ritika: morgan stanley cutting u.s. equities to neutral as they shift preferences to european and japanese equities. at a time when there is a lot of concern about lofty valuations over in the u.s. this is the chart. s&p 500, orange line, trading at a premium to global equities which is your white line. this is on a year-to-date basis. they cite a number of reasons, one is the spread of the delta variant. we also had morgan stanley coming on bloomberg and saying rates are going to move higher on a hawkish bed which will weigh on the equities outlook. not alone in sounding the alarm. credit suisse, citigroup both chiming in. citigroup saying a minor correction could be exacerbated by the fact we have so many bullish trades at play. they are saying the s&p 500 is outpacing short

they funded a massive program within the party, blackrock. they had not been able to secure the deal and were denied by regulators. the big thing they are saying to foreign investors is if you want to come and make money, you can, but we will not cater to you. >> there is a real risk here that because the chinese communist party is doing it that everybody will say this is bad. i am a parent and i worry about screen time for my children. i worry about the impact of culture. is this a chinese way of doing it? >> i'm glad that you asked this question. i would like to say that this move is partially the ccp-esque about response to people's demands. there is such a saying that excessive indulgence -- this is what parents are worried about their children. sometimes they are really concerned about screen time. you have these opinions about the recent measure, that sometimes they are really heavy that the government has taken this measure to limit children screen time, while others voiced doubts and reservations. i think this is an immediate solution

maria: yeah, i'm glad that you mentioned blackrock because recently blackrock actually told their investorsse companies. they told their investors that they should increase our ship of chinese companies by 3 times, roger. you and i've had the discussion about owning chinese companies a lot and i want to talk about that because the securities and exchange commission gary gensler chairman was with me recently and he was talking about ensuring that chinese companies follow the rules of the road in terms of accounting standards here in the u.s. but it's quite selective, isn't it? i want to ask you about the scope of gensler's disclosed oriented measures and what he's doing because you and i have spoken about variable entities where an investor owns a company but it's really just a shell from the cayman islands. tell me about what you're seeing at the sec and the movement to ensure chinese companies follow the rules and why blackrock would be telling their investors to ramp up their investment in china companies by 3 times. >> well, first, on variable interest entities, i think it's the most sca

>> i want to clarify that i think you're talking about blackrock which is the largest money manager,illion in assets under management. and you know they can't tell you something nefarious going on but certainly seems stupid. but the outgrowth of central planning. you have a government made it difficult for people to engage in entrepreneurism. there are more barriers. the fed created easy money, disruption of risk, so these big asset managers are trying to figure out where to go to try to find yield. they're going as you said and buying up residential housing and competing with people for their houses and then you have blackrock coming out just like everything that we've seen based on the demographics from china, based on the known accounting fraud, based on what we're seeing with this evergrande situation today, we know that there are a lot of issues with china and they're saying come out, triple your exposure to it. now i will also mention that they got an okay from the chinese communist party to sell mutual funds in the country. so maybe correlated, may not be correlated but again

it's always thing like blackrock, those are passive managers with etfs trow is the largest holder ofome of the biggest stocks which of course drives the mark. if one thinking maybe the market has a mission, it's a good time to head to trow. first, in terms of data, when we sold off at the peak of february 20th to the march 24th, trow drops 41%. and it would be expected, look at the next slide on the way backup of course from the pandemic's low to where we are now, trow up 168 and s&p at 105. let's look at a slide or chart or two here is a comparative chart. you can see the line, t-rowe price verses the s&p 500 you see it pulls away from the market and steep this is t.rowe on its own. the trend line is ascending until it gets steeper and steeper incorrected. take some measure if you are long or trimmed. >> mike, how would you suggest we trade this taken into account the technical analysis from carter >> of course one of the reasons you will see t.rowe correlated with s&p, the reason of course their fees are asset based if bond prices rise and not just in the united states, globally we

i give blackrock credit, something i don't often do.e coming out with a new etf because there is so much demand. they are coming at it from a different angle because they are being knocked off the pedestal a bit. i think they are a bit early and i think it will pay off in a big way in the later half of 2022, 2023 and on so i think it's a good move. charles: all right. some are saying this crypto crackdown in china one of the other reasons is the need for electricity demand. we know crypto mining sucks up a ton of the power and when you think about the supply chain issues and how much they must be running the manufacturing system over there kind of makes sense, by the same token we saw nike had a bad quarter, fedex had a bad quarter so was the great risk to the supply chain >> i think-- it's like anything else, a bunch of the guest talked about all the known problems, supply chain, delta, evergrande with a litany of issues, the fed and others, i'm not as concerned because it's a known issue. it's a known problem. there is light at the en

a lot danger investing in chinese companies he got larry fink from blackrock saying they need take theirp by three times, three times and you had ray dally oh at the greenwich investment forum this week saying this is all manageable by the way all of this is not just an investing story. this is national security issues. and yet joe biden did not even address china and the general assembly this week, senator. >> is been priority in the administration that let made a lot of money investing other people's money in china. there's a lot of people and a lot of companies made a lot of money gaining a small population is very large market. they want that to continue not just ten years from now they will be here ten years now they want to know how much money can the make for their funds, their investor, their company of the next two or three years. by the time this crashes are not third terrible thing happens i'll be long gone. it's not their money they're risking but it's a risk to the country. it's a risk because it's not just a market failure. i don't exactly recall who said this is the way th

we appreciate your time. >> my pleasure stay safe and healthy. >>> coming up, when we return, blackrockpeak to some of the issues leon was just talking about. the ecb decision a deep dive into lulu lemon as that company stock soars stay tuned for all of this it on cnbc all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. retirement income is complicated. as your broker, i've solved it. that's great,

from apple to microsoft to google and look at who are the biggest holders, it's always things like blackrocknd vanguard those are passive managers with etfs trow is essentially the largest holder of some of the biggest stocks which of course drive the market if one's thinking that maybe the market has some issues, it's a good time to either hedge your trow or take some measures let's look at a table or two and then a chart or two. first, in terms of beta, when we sold off from the peak of february '20 the march 25th low, trow dropped 41%, you can see that there versus the s&p down 35 so drops more than the market, and as would be expected, look at the next slide. on the way back up, of course, from the pandemic low to where we are right now, trow is up 105, excuse me, s&p's up 105, and it trow is up 168. you get more juice on the way down and more juice on the way up so let's look at a slide or two, a chart or two here's a comparative chart it's a three-year chart. you can see the parallel lines that is simply two colors. trow price versus the s&p 500, but you see trow pulling away from the

anna: james turner, blackrock head of european leveraged finance joining us.usiness flash for the top corporate stories we are covering this morning. >> the world's number one carmaker is cutting its production outlook. toyota will make 9 million units. 300,000 fewer cars than planned. the spread of the coronavirus in southeast asia is to blame. china has made an unprecedented intervention in the global oil markets with the explicit aim of lowering prices. the announcement comes amid surging energy costs in china for coal and natural gas as well as oil. goldman sachs is dropping social distancing rules in it london office and returning to full occupancy starting next week. half of the bank's london workers are already in the office each day. free food is also going, which goldman says will support local restaurants. that is the bloomberg business flash. anna: coming up on this program, president biden speaks on the phone with xi jinping. more on that next. ♪ anna: welcome back to the european market open. 15 minutes until the start of the european equity tradi

if they work, they are going to be enterprises and ideas that may be blackrock could fund later on withorporate money -- our quiet money. at this time, it was important for us in our position as an organization to put our capital to work to start accelerating the idea of science and technology coming forward to rapidly try to find solutions to a move to green biofuels, to green cement and green steel. haidi: we do have lots more to come on daybreak asia. this is bloomberg. ♪ shery: we are counting down to the start of trade in tokyo. some stories we are watching as japan comes back from a long holiday. mitsubishi after the u.s. banking unit received a cease and desist order from regulators over its risk management processes. keeping an eye on honda after the carmakers said factories in japan were operating at 60% below their planned pace for the past two months given the ship shortages and delays in shipments. we are following the latest developments on the ldp leadership. one poll shows another candidate leading. haidi: continuing to watch that race. are going to get a quick check on t

national security and that's what this bill would do and it's sending a loud signal to the blackrock'srld that americans should not be financing the rise of communist china. maria: i understand. congressman, nice work. thank you for being here. we'll be right back talking about digital back ique. that's why they customize your car insurance, so you only pay for what you need. [ nautical horn blows ] i mean just because you look like someone else doesn't mean you eat off the floor, or yell at the vacuum, or need flea medication. oh, yeah. that's the spot. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ this is sarah. sarah tried to save money by ordering a do-it-yourself orthodontics kit. turns out she can save more money with amerisave's great rates instead. smile, sarah. things are looking up. see how much you could save at amerisave.com. maria: coining the market, bitcoin dividing america's top business leaders, j.p. morgan chase is ceo jamie diamond continues to bet against bitcoin saying only fools would borrow to buy bitcoin. elon musk is bullish on crypto curre

blackrock just closed their asset management unit, it's a $1 billion fund.ge soros is right to question whether or not now is exec with the right time to be charging in just as the chinese economy has plunged into complete turmoil with xi jinping 's injunction to create common prosperity or a more equal society. amanda: obviously, the implication there is that could be some kind of persuasion one way or another based on our economic relationship. one thing that seems clear to me is that the chinese government would like everybody to understand that their rules will be their rules. if you want to play there, whether it is on humanitarian basis, political or economic. does that make it a safe and attractive place on the terms that most of us have thought of it for the last 15 or 20 years? guest: it's not safe. foreign investors have understood for a time that doing business in china carries risk. nevertheless, they will remain in china and they will keep coming into china. from the perspective of the chinese government, of course they want the likes of ray dal

tom: joining us is wei li from blackrock institute. the markets, do they need to price in a more hawkish ecb? >> i think any discussion around the tech program, tech emergency services program, should be viewed as operational. because there will be questions around what will happen when the program expires in march next year. in our view, the asset purchase program still needs to be stepped up. even though in the near term we see the transitory spike in europe, as we have seen inflationary prints, in the medium-term, the forecast will we will see the medium-term inflation to be materially behind, materially below the target of the ecb. it would warrant greater easing over the medium-term. if that should be compared with the fed, where any kind of a near-term spike in inflation can contribute to where it is not forecast -- indicating the framework. they could let bygones be bygones, which is my medium term inflation below target should warrant greater easing, and is one of the reasons why we are overweight european assets at this junctu

looking forward to catching up with whaley -- with wei li of blackrock. jay pelosky as well.f the quietest rallies in global equities come out of one country, japan. the nikkei is up more than 10% since the back end of august. tom: i am glad you mentioned jay pelosky. i would mention a few other select ones. charles cantor was hugely optimistic on technology and what they are doing. right now the american economy we need to stagger to the fed meeting. neil dutta joins us. have you adjusted your q3 guesstimate for q3 or q4? neil: we have taken down q3 a little bit but i have bumped up q4. more momentum going into the fourth quarter. whether that is in inventory rebuilding or consumer spending to the extent that delta variant is a cause of any weakness in consumption. we know that is beginning to turn around somewhat. we are seeing things like travel bookings picked up, traffic pickup. michael: -- tom: what did you get out of retail sales? i was overwhelmed by amazon like nonretail sales. i looked at all of the good news of american nonretail store consumption. what did you see

market leader's vanguard, market leader's blackrock, that is 1 and 2, and then you potentially have 3 4. tom: i do not get it. it is just one opinion. this is an active manager, a generalization, buying a passive manager as a generalization and there are three ways this can go, i'm not going to go into it right now, but what is so important is citigroup estimates what we call the net clean is state street is .5%, five basis points. it is amazing to see invesco at 38 basis points and passive business at five basis points. jon: you see how the marketing would work. that would be quite strong. tom: it would be a synergy play, i get that. what is fascinating, including from morgan stanley, you have an active manager invesco with oppenheimer, active manager, they are going to go after passive money, which is making barely anything. why do that, will be the question. lisa: when there are no fees, what do you do? you maximize scale. what is the -- $9 trillion? there is no other game. tom: i totally agree. citigroup says they go from 38 basis points down to 15, with the five basis point acqui

tom: reaffirming today the new nominal at blackrock, and you missed it yesterday because you were on assignment, but you missed my culturally aggressively reaffirming his lower, more tepid potential gdp call. that shifts any watching and listening. jonathan: tk feels like it is friday because it is friday for him. he is off tomorrow. bond yields higher by four basis points to 1.34%. your equity market firm or by 0.5%. your dollar weaker. after the decision yesterday, we had some dollar weakness, then some dollar strength, not some dollar weakness again today. it all together i think a lot of people out there are surprised that this equity market is taking everything so well in its stride after a big gap lower on monday. we are facing down reduction in accommodation from the federal reserve. this has been communicated for a while. ok. we are facing down the prospect that this chinese company ever grant doesn't make its interest payment today. and yet, here we are. we advanced 20. tom: brian nick with nuveen, their chief investment strategist, on what it means for your allocation, what

jeff rosenberg of blackrock. good morning. here is your equity market. i am jonathan ferro. keene will be back in couple of days. the s&p market is up 2%. at the bigger move is in the bond market. yields are higher by four basis point come and yields are higher on the curb, a little bit steeper and we have a ton of job openings in the united states. they say, north of 10 million. there is a believe that they will stay open and eventually get filled maybe later this year and into next year as well. that that supply will finally meet the demand. what happens if actually the job openings just are too close and not because someone turned up? lisa: that is the point from peter cher, who is joining us shortly, but over the weekend in massachusetts there was a store that was closing early because they cannot find staff to staff the place and make enough money to turn a profit or stay afloat. it raises the issue of how much does it put a damper on economic growth, that we are not ending some of the frictions. jonathan: let's go to pete right now. is there a risk for that demand that

advantage guard, blackrock, capital state research it's unclear who they reach out to it does feel early. but this idea that engine number one was so successful at exxon, that in and of itself had every oil major on notice for something like this to take place. in the "journal" article, they had a chevron spokesperson braden riddal saying they have contingency plans to respond to events including an activist investor they regularly engage with sharmds but still chevrons shares this is what it comes down for every major activist is the how they performed recently they are up 17% this year so far. but that's trailing the broader index of 21% up slightly this more than about 0.4% right now a little bit volatile this morning. i did reach out to engine number one and chevron both this morning. i haven't heard back yet guys but will let you know when i do. >> i think the thing that has so many big companies quaking is the idea that engine number one was able to do this with only a $50 million investment with exxon. that was 0..02% of the total market company cap of the tp right now engine numb

>> we know that blackrock said that he wanted china to ensure the consistency of the longer-term governmenticy and if there is more consistency, they would help with transparency among global investors. we also know that he thinks that it is important for china to put in place a financial safety net for the aging population and that has become an issue in the chinese society because the aging population. this is according to people familiar with the meeting that shared the details with bloomberg news. >> still to come, one of the worst-performing commodities around. how that will ripple through other markets. this is bloomberg. ♪ >> the most interesting number of the week to me was the new york fed survey that really shows pretty clear evidence both one-year inflation expectations and three-year inflation expectations may be becoming unanchored. the data flow, whether it is housing, whether it is more and more anecdotes, more and more places with supply chains, whether it is direct measures of expectation looks increasingly concerning to me. >> the former u.s. treasury secretary larry summe

will quote something from a ted lasso episode -- [indiscernible] for me i do not think like mutt -- blackrocks into china endlessly, and more portly , the real yields in u.s. and europe, you got to get your yields somewhere, and china may offer some of that, so i think that is probably something like rock is looking at. lisa: george you some lightning bolt words, but there is this question of the damage of international investors going into china at a time when they are embarking on something that feels a little bit like, i don't want to say a cultural revolution but that type of overall type of control by the top. how much do you see that affecting slows into china in the next couple of years? >> i agree, but this is about diversification, diversifying portfolios. i don't think we are sitting here blindly saying invest in chinese equities. this is saying investors globally have been underweight through china and this will be one of the largest economies globally so investors need exposure there. you take what the market gives you come and when valuations decline as rapidly as they have in ch

there, bank of canada expertise, he just put out three brilliant tweets, and he talks about the blackrockiew of a muted new nominal theme. think about boe, what we have all set about the fed. are they trending towards a new nominal set of yields that is shockingly lower than our historical framework? jonathan: every cycle over the last several cycles, that is what we have witnessed. just lower, lower, and lower. so much to get through this morning. all of the central bank decisions, turkey, let's focus on the main two. the federal reserve, and the second-story for the week, china. we are taking this very well right now, up 22 on the s&p, advancing 0.1%. yesterday was a tidy session, too. lisa: that is the most interesting thing. we are talking about tightening policy and the potential risk from the chinese economy, and no one cares. i am trying to understand. jonathan: someone cares, lisa. lisa cares, tom. good to have her back. next on the program, on tighter monetary policy, an exclusive conversation with norway's central bank governor. from new york, this is bloomberg. ♪ ritika: with t

let's get to blackrock global allocations portfolio manager. let's start right here, you trimmed your equity exposure a little bit. walk me through the thinking into year end. >> good morning. so it is not that complicated. i think our view is the stock market will end higher than today but we are in a period where risk is a little heightened. one reason is people are well aware this is seasonally the toughest part of the year. second, the uncertainty around the delta variant, and finally something both you and lisa have been mentioning, supply chain disruptions. this is a big issue, it is affecting the pace of growth, the prices, and it is something we are not used to. we are always used to talking about demand but at least in the near term, this is another factor the markets will be dealing with. having said all that, we think it is a temporary issue. looking out six to nine months, stocks are higher than today. lisa: where are you trimming? russ: a little bit of our cyclical exposure. one place we have been trimming our financials. we were o

but then we heard in the opening from blackrock, they are stating the bull case. jonathan: the beauty is that we can do single names as well. i am taking about the nikes of this world. it was a miss, but a supply constrained mass. do you want buy names hit by supply constrained stories because their demand is still robust and could persist into next year? tom: there's the optimistic tone. the vix out over 20, 21 earlier. 20.60 on the vix now. jonathan: your equity market comes in 0.75% on the s&p. crude, let's sit on that for a moment. $76 on wti, $80 on brent. bank of tom: you interpolate it outcome a $3.94 a gallon of gas is one eyeball on where you go as you go to $100 a barrel. should we state the bull case right now? state the bull case where this swoon is an opportunity. >> earnings growth we think can be in the high single digits, but the concern today is whether yields are moving too far, too fast. the issue is that as monetary policy becomes contractionary instead of expansionary, how do we get to this growth rate? we are looking at a strong consumer, str

have for the most part returned to the office the transaction included the european headquarters of blackrockn sachs and others is 57% of pre-covid levels a modest jump in transactions in downtown manhattan sales are back to 1/3 of pre-pandemic levels. >>> in the face of political backlash and a taliban that is celebrating the u.s. removing itself from afghanistan, president biden defending his decision to end the 20-year war and pledging more evacuation efforts on the ground. nbc's tracie pots joins us with thereaction to that speech tracie >> reporter: seema, the war is over but it looks like the evacuation effort is not in that speech the president pledged to bring home every american who wants to come the withdrawal is complete. >> my fellow americans, the war in afghanistan is now over it was time to end this war. >> reporter: with nothing but disabled equipment left at the kabul airport, president biden defends his decision to leave. >> i was not going to extend this war and i was not extending the forever exit. >> he called the evacuation of 124,000 people an extraordinary success. >>

what is going on in china and it really just focuses on three big bond funds right now, one from blackrock, pacific investments management company, pimco and ash mere, the ashmere group. besides that you could make the argument if your fund or firm that has large exposure to asian real estate or just real estate in general, if you argue this could be a tip-off, then you're vulnerable but short of that, there didn't seem to be a lot of wide exposure here? >> no. i think that the micro exposure probably is to a handful of funds, maybe a private funds have exposure because they were attracted to high yield on paper. neil: right. >> i would look at the root cause here which is, why is a big company in china sort of getting made of its skis and is there something fundamentally wrong with the chinese economy right now? because a lot of world economies, including ours dependent on what goes on with china's economy. neil: mitch thank you very much. mitch roschelle following all of these developments. again the stock market is holding on to these gains, about 214 points. we remember we lost better

so i think whether it's blackrock or any of the other major players who have the debt but also have large equity stakes through their sector funds, they're right now sending an important message to beijing's leadership, do not treat us differently and do not create a lehman-like catastrophe. neil: to that point, jim they nose, you know, the -- che nose, the hedge fund giant, he said there are many more evergrandes out there, they're all simply, you know, looking at departments that can't be serviced. -- debts that can't be serviced. he's saying the whole chinese property market is on stilts. now, if he is right, this could go way beyond just one company, right? >> well, there's no question, neil. but again, if you're the leadership in beijing and if you're president xi, all right, recognize that you've got both a domestic problem on your hands, and you've got a global problem on your hands. and of course the long-term focus of the leadership in beijing is when do we become the world's global economic leader. that will never happen if they allow this thing to go toes up. i think they're ri