how big of a cut is this to blackrock?arts of the market, right? nice they are not going to do that anymore. >> that is corrected. we are not going to use blackrock any longer. we had an inflow and outflow into one of their liquidity funds of about one and a half a billion dollars. we haven't moved in a totally different direction. look, black rock is devasting from west virginia. what our jobs and economy are so we are devasting for them. we are not going to pay blackrock to destroy our economy. this net zero carbon emission standards they have, west virginia is an energy state. we do coal, we do gas, we help power america we are the fifth largest energy producer in the united states. this is baseload energy this is the stuff that keeps the lights on. and to sweep that out from under the people of this country if we do not have that is going to be very cold winter. maria: it's pretty incredible to me because a black out with its investor letter this week. their annual letter. in that letter there to talk about all this es

speak with philipp hildebrand vice chairman blackrock. one of the biggest cash deals over the pandemic. microsoft buys activision in a $69 billion deal. 10 year 2% so quickly. we are seeing a repricing offend expectations. tom: inflation is excessive. you need to see that hike in rates. breaking into positive territory, investors are no longer happy to lend their money, give it to the german government and pay for the german government to hold that. that dynamic has changed for the first time since between 19. bond selloff continues. you get some support in terms of the luxury space. that remains less of a picture for french equities versus what we are seeing. the german dax is down. the benchmark is down. here in the u.k., losses about 13 points. inflation print, this is a reminder of how important it is, 5.4%. wrapping up pressure on the boe, markets may be starting to price in faster rate hikes. we are also starting to see the markets price in more than 25 for the first hike the fed in march. let's see how things are playing out across

that is what blackrock is diametrically opposed to. pay blackrock to destroy our industry. secondarily, blackrock is doing tons of business in china. china is currently building 55 brand-new coal-fired power plants, so call is okay in china but not in america? i think that is absolutely wrong. we need to put america first, and i'm going to stand up and fight for it. >> laura: i applaud your efforts. to play devil's advocate here, what do you say to people who say, this is the role of the government, the federal government should have the same restrictions on business and china as they had in business in the soviet union. so business is there to make money, so you can blame them, they are there to make money, big deal. what is your answer to that? >> my answer to that is laura, i am a market participant. i'm a market participant in this and what i am doing is stating my preferences here in the state and who we want to do business with. if they are not going to comply and meet our standards in terms of our energy industry here in west vi

we're not going to pay blackrock to destroy our industry. secondarily, blackrock is doing tons of business in china. china is currently building 55 brand new coal fired powerka plants. so coal isn okay in china but not in america. i think that'sol absolutely wroe and we n need to put america now where he is and i'm not going to stand up and i'm going u to fight. i applaud your efforts to play devil's advocate here. you say to peopleof who say, well, this is this is the role of the government? the federal government shouldss have the same restrictions on business in china as they had in business in the soviet union. so business is there to make money so you can't blame them. they're there tohe make money, you know, bigou deal. a >>ns what's your answer to that? my answer to that is laura ,ti i'm a market participant. i'm a market participantin in this. g and what i am doing is stating my preferences here in the stated and who we want to do business with if they're notot going to comply and meet ournd standards in terms of our energyar industr

here are some numbers from blackrock in the last 60 minutes or so.der management, $10.01 trillion. robin wigglesworth at "the financial times," fantastic author of "trillions," tweeted this out. "the combination of rising markets and stronger flows meant that black rocks assets under management had climbed $1.33 trillion last year. that is the equivalent to adding an entire schroders, almost an invesco or t. rowe price, and three janus hendersons." tom: you look back at all of the conversations, and i did a thing with the late john vogel that was absently brilliant. as you correctly state, it is not about the moment. it is not about the year. it is the cumulative thing that john golub at vanguard did, and it accumulates up. where are we going to be in 10 years? jonathan: no idea. those numbers are just massive. lisa: the compensation expenses over at blackrock rose 16% for the quarter, almost 20% for the year, so expenses there are rising as well. jonathan: can you imagine if bob diamond was still at barclays and managed to keep hold of that passive

blackrock reports earnings today.mes up as any political risk. >> so the idea that bernie sanders is going after blackrock as the main shareholder to force somehow the end to the labor unrest at a coal mine in alabama. this is getting deep. >> reporter: yeah. i think what's interesting here, you're seeing the move by progressives to redefine what shareholder activism is, typically we think about it in terms of replacing the management of a company, get a new ceo, spin off a division but they're trying to broaden the term to include how you treat your workers as well put that on the list of items and on the agenda that shareholders will care about and try to pressure the companies they're invested in on the other dynamic i think is at play here, we're at a moment where workers have more power than they have had in decades. workers have more power because of the supply chain shortage, worker shortage, so they've been trying to ride that momentum to push for changes they've been looking for a long time. >> thank you very

let us get back with wei li, the global chief investment strategist at blackrock.t was much easier to make money in 2021. where do you want to be on the back of? wei: we continue to favor developed markets. we heard a comment that the dollar weakness yesterday could be supported with the emerging markets, but you forget about rate differentials across these counterparts. yes, it could be weaker than last year, and how much it could weaken from here is the question. given the fundamentals in the developed world supported by a few ok growth and earnings numbers that are more spread out over the last year, where it was more focused on the u.s. leading the pack. but now it is spread out across europe and japan, so we see a more robust reason, and this is where we are having a conviction at the moment. tom: not a lot of love. was a cyclical sales evaluation story here, many would argue that within the ftse 100, why do not like the u.k. at this point? wei: u.k. equities are beyond useful at the moment. we see the boe curve its policy normalization, going through rate hik

jonathan: jeff rosen of blackrock will weigh in in just a moment.ckee, to you for more details. michael: looking at the implement rate. small beta the labor force. -- a small gain in the labor force. that accounts for the number of people who got jobs. 651,000. the number of people who reported they were out of work, down 483,000. we saw a big swing in employment in the household survey once again. we will have to reconcile that. the news is still 3.9%, and that is something that will catch the fed's i. jonathan: stay close as always. 3.9% on unemployment. the previous read was 4.2%. the headline number 199,000, the previous number revised higher to 240,000. the estimate into this was 450,000. yields higher by three basis points on ten to 1.75. pushing 90 basis points on twos. up almost four basis point on 30's. joining us is jeff rosenberg, portfolio manager at blackrock. your response, your reaction? jeff: the focus is the headline, while a miss, this expected to be revised higher. we have this calendar set up that december gets revised higher. it

gloria blackrock will be mentioned today, the most powerful of these findings. blackrock controls large portions of corporate america yet itself owning very little of it. the future is that the green economy will be enormously lucrative for investors like him. he writes in his latest letter at the next 1000 unicorns will be startups that help the world to carbonized. this is an extraordinary and unlikely production. blackrock's leader claims the world's entrepreneurship and innovation will focus almost come leon reducing carbon emissions. what happened to curing disease, building cities and families, reading useful products, and aiding the pursuit of happyness. why should such a powerful voter of other people's shares have such power to realize his narrow and restrictive vision. i find it more likely that is the single-minded view of opportunity will be punished. he vanished and unrewarded by the market. the result could be not a green boom but a green bus. as voters and consumers demand affordable energy. the purpose of a market is provide competing investments

he wants blackrock ceo larry fink to step in and stop the protest at the coal mine in alabama.ost a year over pay and benefits and blackrock is the company's largest shareholder. >> we have perhaps the largest private equity firm in the country managing $10 trillion in assets making billions of dollars a year in profit paying ceo $30 million a year and say we can't intervene to make sure that kids, children of the miners don't go hungry that's the kind of pressure that has to be placed on these ceos and these large corporations >> it's a strategy sanders has used before with some mixed results. he called on warren buffett last month to intervene in a labor dispute at a steel company owned by berkshire hathaway. buffett declined to get involved and then the beef with jeff bezos over the minimum wage. amazon raised starting pay after standards introduced a bill that would bpenalize the company sanders says he counts that as a win. >> people are sick and tired of the kind of corporate greed that we are seeing. people on top right now during the pandemic are doing phenomenally well

. >>> blackrock's ceo larry fink is defending a movement to push companies to focus on issues such asofits. fink says stakeholder capitalism is not ability politics, it's not woke, it's capitalism but also defends blackrock's stands of engaging with versus completely diversing from gas and oil companies. andrew ross sorkin will have more on "squawk box. >>> and kohl's is coming under pressure to take action, including a potential sale "the washington journal" says the advisers have a roughly 5% stake in the retailer, urging kohl's to add more board members with retailers kohl's shares are down about 20% since it settled a previous proxy fight last april brian, back to you >> silvana, i don't know about you. when i fly, i don't want the words catastrophe or catastrophic anywhere near my airplane. >> that is terrifying to hear. >> talking about cell phones disrupting flights, and yet somehow there's a debate about this no thanks. turn the phone off so we can land. >> yes it's no that hard. >> thank you no, it's not that hard you know what is hard, a lot of commodities. let's talk more n

the bank has sealed a deal to take over space but it has blackrock signing -- one of the biggest property deals since the pandemic began. that is the bloomberg business flash. francine: let's get into the markets. joining us is our bloomberg markets editor and chief investment officer. a lot of the focus is on tech and the mixed bag in terms of inflation and fed hikes. >> absolutely. it is really something that is rattling markets, especially coming from the u.s. overnight and that flowing through china. not a great start, especially for investors who are bullish on the sector. it is going to be interesting, the implication for your. in a lot of ways, the european stocks are the anti-thesis on the sector. we have certainly seen the argument that in the environment were yields are rising, inflation is picking up and these high-growth sectors will be in danger. in turn, they could give a chance for these value heavy sectors or indexes that we see in europe, a potential to gain some ground. tom: how dependent is the financial sector or have they adjusted their models to be able to expand wit

tom: what is blackrock as a general statement doing with duration? is it a microanalysis? you looking at first , second derivative analysis? >> in terms of duration, we are starting to go a bit closer to home in terms of the interest rates in our portfolio. where we had been short or underweight in treasuries, for example, we are closer to neutral. given the uncertainty in the market and uncertainty around the path of growth, we expect growth to remain robust and strong but there are increasing headwinds at the moment. around issues with ukraine, the slowdowns in various areas given omicron and different aspects. i think that in terms of duration we are a little closer to home and keeping it relatively light. tom: important research out of hong kong, i thought it was a real clarification of the camp. let's look at the major note, it is simple. the conventional wisdom is changing patterns of central-bank bond buying means that yields will go up. we beg to differ. can't get clearer than that. the qt teaser is not solved by just looking at one side. jonathan: let's get into t

jean boivin joining us now, of blackrock, global head of investment. why is that important? jean: i think it is pretty crucial and important. we have seen, after stopping the economy for the virus, a restart. we have been in that process the last few quarters. it is not our usual recovery. this is not guided by the consumers, investment sentiment, and animal spirits. it is really about going back to the activity, turning on companies, turning on life. that can happen very quickly. point number two is it is a lot easier to restart demand then it is to restart supply, so that really is a mismatch. that is where inflation is coming from, and that is very indifferent from inflation we have seen. so it is pretty crucial. kailey: jon was focused in on the research line. i focused on that monetary policy cannot stabilize inflation and growth. because it is laser focused on inflation, is it at risk of hyper tightening into weakness, and therefore we are worried about a recession down the line? jean: just to be clear, is a restart and recovery. it is really about lifting constraints.

i mean, you know, look at like i said blackrock, bridgewater.ors to up their investments in chinese companies by three times. do they not understand that they are funding china's expansion and at some point if the ccp does overtake the united states there certainly will not see the same upbringing, their children will not have the same upbringing they did in a chinese empire. >> well, the case of blackrock is interesting. apparently blackrock backed new board members, pushing exxon to divest itself of certain oil fields that if they did would almost then certainly wind up in chinese hands. and if you think that the chinese who are building over 30 coal fired power plants cares about environmental degradation, i wonder if these folks are also investing in bridges between new york and long island. maria: yeah, right. well, that's the thing. i mean, you know, they want to come out and be this esg champion by telling us not to invest in fossil fuels and yet they're investing in china which the last time i checked was the biggest polluter in the worl

tom: what does larry fink at blackrock think? here it is.h management adjusted for what they are doing now has a margin of 24.4%. that is steady income, minting money. jonathan: can we just say some thing about larry fink at blackrock? i think what he did with wages at the end of summer last year was just genius. get ahead of it. everyone below director level gets an 8% pay rise, and then move on. everybody else waited. i think larry fink at ahead of this story in a different way. tom: we are going to stop the show. i am going to get in trouble. jon, that was not woke. that was listening to his employees. jonathan: are you using that word because of something that developed in the news yesterday? tom: they are trashing on mr. frank. lawrence -- mr. fink. laurence fink got out front because he was listening to somebody living in brooklyn or living in new jersey who said, you've got to be kidding me. jonathan: and at the time, it helped few -- it felt huge. it percent, while. now everybody chasing their tail trying to catch up. lisa: you made

there's a ton of blackrock people in the biden administration and we'll see if they listen to him.ereafter all. good to seeou charlie, thank you very much well a co-owner of the golden state warriors ripped for comments about the treatment of wegers in china but some want the nba to hold them accountable more on that, next. you're a one-man stitchwork master. but your staffing plan needs to go up a size. 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 tums vs. mozzarella stick matching your job description. when heartburn hits, fight back fast with tums chewy bites. fast heartburn relief in every bite. crunchy outside, chewy inside. ♪ tums, tums, tums, tums ♪ tums chewy bites municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if y

often times they act with major wall street banks, you know blackrock for instance sent out a letter to its ceos in which saying if you aren't engaged in woke policies in your company we may disinvest. it's all kind of a domestic american version of the social credit store of the chinese communist party imposing on its people, government and big banks working together to try to enforce woke social and economic policies on private businesses. maria: it's actually quite extraordinary as you mentioned blackrock and they are perfectly fine operating in china. they told their investors to up their investments in chinese companies by three times and yet they are attacking american companies for fossil fuels and last time i checked china was the biggest polluter in the world. i have to get your take on china. moments ago you said what will the ukraine situation mean for xi jinping as he eyes taiwan. when do you expect china to invade taiwan? >> well, i think xi jinping believes today that his military is capable of invading taiwan. they can execute that operates and if he gives the order. i

visit indeed.com/hire >>> blackrock's larry fink is doubling down on his commitment to socially responsible letter, he defended esg investing and on squawk box today, he said stakeholder capitalism is about profit >> many people believe social values or environmental issues are political and woke i don't believe that i've always said about a corporation and its purpose and those companies who have a strong purpose are going to have more durable profitability >> our next guest says sustainable investing is failing to live up to its promises let's bring in blackrock's former chief investment officer. the founder and ceo of the rooming initiative, a non-profit aiming to help education children in underserved areas. welcome back what part of his message do you most struggle with >> there's a lot of things, but i think he's almost setting up a fake fight by pretending to defend against people criticizing capitalism it's all markets and pr for the most part and it actually doesn't achieve any progressive ends beyond sort of defending the status quo for longer and preventing the kind of systemic r

since we are on the notion of carbon footprint turned to larry fink the ceo blackrock the biggest money in the world $9 trillion his annual letter to companies that he invested he does this every year he lays on his investment philosophies and what he sees in the world, what i found fascinating about this newsletter larry who is known as an environmental advocate struck a very moderate tone he was one of the more difficult c had to write blackrock is coming under pressure as progressive economic edicts for companies he made it really clear in this letter, he does not do that despite his personal use and what's going on in the investment world whether a move towards environment or esg social government investing not so much making a lot of money and how to improve the economy it's very controversial. he struck a very modern tone. a couple things to point out that was interesting here. it was a very difficult one for him to write because of all the politics surrounding this number what he said he is not pulling these from fossil fuel companies that's not what they do he makes investments

. >>> shares of blackrock under pressure after a revenue miss. leslie >> that's right.t the end of the fourth quarter the assets under management surpassed $10 trillion first time ever. new other firm has come close to that figure. passive investments represent a majority of aum. on the earnings call this morning though the first analyst question around sustainability of the growth in 2022 in the face of higher interest rate just the ceo pointed to the roots as a fixed income manager. despite some of the volatility that many expect the foirm slightly missed on the top line shares traded in the red today down more than 2%. >> thank you. >>> mike, what do you do with blackrock in rising rates? >> it's just a machine across so many asset classes and different channels it is the passive investing in equities and etfs but not dedicated to that. it is an institutional business. fixed income mostly tied to asset value the market determines the asset base of blackrock. that determines the fee level. not that complicated but strategically pretty well set up for whatever comes in

to larry fink, he's done deals for him, the chairman of blackrock for many years and larry fink has's 65 years old, there's talk about morgan stanley always wanting to expand into wealth management, maybe there's a role there, david solemon is a couple years older than flemming but he's not looking to retire and then there's jamie dimon. jamie dimon says he's got five years left. he's, i think, 69. it wouldn't surprise me if he bought flemming's firm, they merged it in there, jamie becomes chairman, flemming becomes ceo or something along that line. by the way that's how jamie became ceo of jpmorgan. he was running bank one, jpmorgan chase bought bank one and the whole thing was predicated on jamie taking bill harrisons place at some point which he did and the company has been better for it so again, flemming does not get a lot of press. he's a low key dude. just does his job, does it pretty well but the chatter among the wall street investment banking services circles is he's readying this thing for a sale at some point. can't say it's going to be tomorrow, a year from now, and he

jonathan: joining us now to discuss is jp morgan's -- and blackrock's bob miller.he expectations for this year is so wide. what's your best case now? >> so we do expect the fed is on track to start raising rates in march. we also think that they are going to use the balance sheet in a way that was different than in prior cycles. we think they feel that the balance sheet is this escape door for them. because if they hike too fast and they impart the yield curve, they start shortening the cycle. instead what they are doing as they are looking at running down the balance sheet at a fairly fast pace. we think about $50 billion per month in treasury. starting in june or july. then they use that to tighten financial conditions. get real yields higher and hopefully do it in a way that doesn't materially disrupt the recovery that's been well entrenched over the last two years. jonathan: that's the hope. you may it some very simple and easy. we know it's not going to be. bob miller, your best case on the balance sheet. that's the interesting component and all of this. how d

taylor: you are echoing comments from recruiter at black wrought -- from rick at blackrock. this is raising a lot of questions in the next couple of months. how important is this when you thinking about inflation and the impacts you talked about on real wages, which are negative? steve: the outlook on inflation is very confused. what is happening to the labor market is pretty clear. it is hot, people are getting big wage gains, particularly at the lower end of the spectrum, and lots of jobs are unfilled. the reasons for the inflation gains are a little confusing and i think that is the thing the fed is really going to look at in terms of the pace and what they do in terms of monetary policy over the next year. they want to see how much of the inflation is driven by supply disruption issues, by covid. presumably at some point covid will return to more of a normal state, more endemic than pandemic. it will be interesting how much of that improves the inflation outlook versus where they are right now. caroline: our tea leaves reader, thank you so much. meanwhile, a big part of

jonathan: we heard from blackrock on when neutral is right now. this is the conversation we had to get to, when neutral is on the policy rate. >> i think this fed needs to get to neutral. we are still putting liquidity into the system. i think the fed needs to get to neutral. now we are rushing to get to neutral. credit markets are in good shape. the economy is still operating at a good level. i still think you will see mid to high 4's in gdp, but then you have a fed who will try to break this a little bit. it is a lot a bit awkward today in how you do that when inflation is accelerating. jonathan: when i heard him say that we need to get back to neutral, we all thought, what is neutral? you talked about the earlier move from the fed, possibly more hikes than anticipated. have you got any thoughts on when neutral is? jim: here is the thing, when we think about neutral, we think about a neutral policy rate, but we also have to start thinking about with the neutral balance sheet is as well. yes, the neutral policy rate is when the real fed funds rat

quarterly earnings season ramps up today as some of the largest banks report results including blackrockp, jpmorgan chase, and wells fargo. >>> a decline in technology stocks dragged the stock down yesterday. the dow lost 176 points. the nasdaq fell 381 points, and the s&p 500 dropped 67. >>> more than 400,000 people with student loans will get some debt relief. one of the largest student loan companies, navient reached a multistate settlement for $1.8 billion. some students will get their entire debts wiped out. others will get $260 checks. the company was accused of pushing students into long-term debt instead of offering less costly payment plans. navient denied acting illegally and did not admit to any wrongdoing under the settlement. >>> the federal government is enrolling the help of teenagers to help with the supply chain backlog. it's moving forward with a program to let younger people drive big rigs from state to state. currently you must be 21 years old, but the initiative would allow 18 to 20-year-old truckers drive outside their home states. safety advocates are concerned tha

tom: as we saw from apple, how does blackrock value these tech behemoths benefiting tons of money? russ: this is part of the bold case that you have companies like apple that are cash machines. they are growing their cash flow at an unbelievable rate. this is where dislocations create opportunities. we know a lot of the names that will not have earnings for decades were hit. you have companies like apple who take any other name within that big tech large-cap universe, these are not companies where you are looking at cash flow in 10 years. it is generating tremendous cash flow in real time. lisa: when do you know it is time to deploy cash? russ: cash is not about trying to time the market. we are running with a high cash balance as well. cash along with a long dollar position has become one of your wrist commit agains -- risk mitigants. jonathan: before you go, friday a lot of people are expecting a negative one. how will we internalize that when the number drops? russ: there is still some noise in this print. numbers around the holidays have been off. i would not based too much on

blackrock's larry fink is defendsing stakeholder capitalism as not about politics and not because it's woke. he explains his comments to andrew in an exclusive interview straight ahead plus airport delays could soon get worse, several airline ceos issuing a warning over at&t and verizon's push to finally roll out those 5g networks that were delayed. it's tuesday, january 18th, 2022 and "squawk box" begins right now. >>> good morning, everybody, welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. check this out, you see at this hour dow futures down about 250 points but that's nothing compared to the nasdaq, down 286 points, much bigger on a percentage basis, s&p down as well by about 53 this is coming as you see a spike in treasury yields the 10 year up to 1.813% the higher yields, 1.04% for the two year all of that putting severe pressure especially on the high multiple stocks. that happens to be a lot of the technology stocks which is why the nasdaq is slhowing a decline the faang s

slightly below wall street forecast blackrock's ceo larry fink saying organic growth is at its highestassets under management in the firm's history. looks like they collected up about $267 billion of active what they're calling net inflows in 2021. >>> coming up we are awaiting earnings from j.p. morgan, wells fargo and citi group report the next hour. keep it here for full earnings coverage don't miss our interview with brian deese, talking inflation, supply chain cllgehaens and so much more. "squawk box" coming right back t would be the last thing on my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here...you...go. cool. thanks. no problem. voya helps me feel like i've got it all under control. because i do. oh she is good. voya. well planned. well invested. well protected. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match i

this is just behind blackrock. they are one of the top three or four u.s. securities in the world. this means they could now be looking at ipo numbers. reporter: that is an interesting part of it. they have investment along sign -- alongside paradigm. that seems to be the movement and the question is that paradigm being in there, does that mean that security is looking at the hedge fund? tom: that is around the beliefs of setting up their own hedge fund around crypto. it is technology, startups, and potentially crypto. reporter: exactly. the ipo patches move to crypto this year. francine: what is amazing is that in the past, ken griffin said he was not into bitcoin. do we know what he spends his money on? reporter: he is certainly a big spender. he bought a wonderful townhouse off in paris, and more recently he spent about $14 million for a copy of the u.s. constitution. despite all of that outgrowth, his fortune continues growing. tom: thank you very much on the growth of citadel and its ceo. let us check in on the markets. you have the gains and they are protected -- particularly

. >> blackrock's larry fink has been urging ceos for several years now to consider how they can personally contribute to society, and just this week, he wrote his annual letter, and it said, quote... what did you think when you read his letter or when you heard about that letter? >> i mean, i know larry fink well. brilliant man, and he thinks this way. and so, to put it in such elegant terms and articulate it the way he did in this letter, you know, kudos to him. i mean, there's nothing about what he said that you can fault. it's sensible capitalism. what he's talking about is capitalism with humanity, capitalism the way it was intended to be. why are we hijacking capitalism to be something it shouldn't be? why are we saying it's got to be maximizing shareholder value at the expense of everybody els somebody's going to have to pay the collateral costs of all of the damage that capitalism creates, even if it's to the exclusion of everything else. so i tnk we should parse larry fink's letter very, very carefully and really understand the spirit of it and say, "what is it going to take for us

david: great breaking news on blackrock another month staying at home for a lot of people there., becoming the first u.s. company to briefly touch $3 trillion in market value. here now to discuss is capitalis t hedge fund manager jonathan hoenig and michelle schneider, good to see you both. thanks for being here. jonathan, first of all let's talk about the iphone. it is the cash cow of apple, as everybody knows. when you have increased inflation, and people have to cut back on things basic things like meat and milk, stuff like that, they maybe less prone to trade up for a new version of the iphone. doesn't that hurt apple? >> potentially david. look a lot has hurt and impacted apple over the last what, 20-30 years, since keep in mind this company was left up for bankruptcy in 1997, it was almost bankrupt, so what they did, david, they innovated, whether it was the iphone or the whole itunes platform, apple is the world's first or america's first $3 trillion company exactly because of that innovation and you gotta take your hat off david whether you're bullish or bearish on apple

morgan, citi, wells, blackrock, and goldman sachs, all coming out and these are different areas of financial, this was supposed to be the time for financials, right we were supposed to be seeing rising rates, we're going to see better interest margins and yet here we are. so i think this is a situation where these -- the whole sector is essentially stuck but also we've gotten into a situation where a lot of the bad news has already come out. so i think this is an interesting set up potentially for something called an iron condor an iron condor is a strategy that we could use when we believe that we might be range bound for some time. now, the thing ask about getting into a situation where you're betting it's not going to go materially higher or materially lower is to be mindful of catalysts. well, we've already seen many of those come and go. and that is not to say we don't have some important ones coming up, we have the fed next week. and that is important. one of the things that is when you use an iron condor, we're going to be essentially, getting into a short options trade, where it's a

even larry fink weight in this week saying he would allow blackrock investors to weigh in at company's annual meetings on the individual level. i think that given the announcement that microsoft made last week, that they have hired an independent law firm that they are going to do an independent investigation, look at best practices in the industry and they are going to implement that at microsoft, it certainly put some in a better position with the activision purchase. emily: are you planning to ask microsoft to added activision to this review or will it be a separate review after the deal closes? natasha: we have already been in touch with microsoft asking them to do that. art believe that that would be the intention. it will not close for another year. i will say -- it was a red flag with activision. we were caught by surprise. that this will be the kind of company that microsoft would want to bring into the fold. not because of gaining an metaverse but because of a culture of sexual harassment in male-dominated culture where there has been a history of allegations of predicting --

the bank has made a deal to take over space that houses the headquarters of blackrock. amongst the biggest deals signed in new york since the pandemic began. china mobile has surged. the largest wireless carrier was removed from the u.s. market last year. one of the targets of an investor ban -- it arose as much as 10%. 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. i'm ritika gupta. this is bloomberg. ♪ >> i think we are in the midst of an exploration chamber in the u.s.. for now it's all about rates and risk appetites. jonathan: from new york city with tom keene and lisa abramowicz, i'm jonathan ferro. down a little more than a 10th of 1%. some headlines from the u.k., dropping pcr tests to confirm a positive rapid test. the health security agency announcing changes to covid testing. people with covid symptoms should still get pcr tests. what happens after that five days in america when your isolation cuts. for many corporations that demand you get a pcr tests to come in. it

haidi: e have some really big-name backers, blackrock and samsung among them. what is next?sting in the near future? david: you are putting me on the spot here. at this point i can't comment on any public listing. if and when our shareholders approve or if they don't approve , and will definitely speak about it, but from my mouth to your ears, if we announce something, bloomberg will get the exclusive. don't worry. haidi: all right, so what are the big growth -- you are looking next to push through into the new year for the business? david: we are just really excited. generally, portfolio management, people understand it now. great channels and data providers such as yourself, bloomberg, people are thinking about how can i interest, how can i get a portfolio that will be able to ascertain the different issues that are coming to the market today, such as the api increase, such as employment numbers, different inflation numbers, all these things we talk about in the current session. places such as korea where i am right now, fintech, along with hong kong, obviously hong kong,

blackrock will move to -- in 2023.r worst start to a new year since 2019. investors took profit on some of their most successful bets from last year. for more, we are joined by sophia -- 2021 was not really a great year for chinese stocks. was there profit taking we saw at the start of this year -- or is there a deeper story? >> great question. 2021 was really a story of offshore versus onshore. stocks in hong kong and the u.s. were extremely punished by the tech crackdown. onshore, better than stocks in hong kong. yesterday, not a huge drop but a -- start to the year. pboc withdrew liquidity from the financial system. really not much of an impulse there to buy shares. these green stocks, ev stocks, anything to do with she sleeping 's push to have a cleaner energy industry did extremely well last year. that was the only thing that worked in china. it does make sense to take profit. i would say this weekend this month is key for liquidity. we are watching potential banks closely and obviously the equity market is highly

blackrock, it's still not time for them to step in and buy the dip, not at this moment.ani: let's continue in the banking conversation as we monitor these markets continue to selloff. joining us is the head of european bank research at morgan stanley. it's wonderful to speak with you. we spoke with james of deutsche bank earlier. cost continue to come up for the industry as a whole. of course the macro outlook for banks is a positive one, given what manus and i have been discussing about yields. but how much do we expect that cost in this competition or talent will weigh on the global banking sector? >> it is one of the biggest topics coming out, but i have to say there's a very uneven cost pressure in europe. we talked about it a couple of months ago, whereas you are saying the competition is very high and particularly the salaries are increasing quite significantly. but there are parts in europe when you look at universal banking in particular when those pressures are lower and they come from a different angle, much more from the investment in technology angle, but the

blackrock thinks more losses, vanguard things tend's will hit 2%. it might not just be tightening. it could be a little bit of tightening with balance sheets shrinking. what might that do to the risk appetite? let me show you what is going on. day one, ground zero equity markets are higher. asian markets -- a monster three years for the s&p 500. up over 100%. last year, 27%. do valuations matter? 90th percentile. oil is up 1% on the morning. it seems to be the market is looking through omicron and the mobility shattering airline travel over the weekend. omicron is being deeply discounted as we go into the opec-plus meeting, because libya's delivery is out. the dollar remains the alta -- alpha, up over one quarter of 1%. let's get back to the lead story. u.s. health officials are looking at adding new testing requirements after last week's move to shorten the isolation period for those who test positive. >> the cdc decided they would cut that down to five days if the person remains asymptomatic so long as when they do go out in the second five days of that 10 day period, back to wor

the blackrock vice chair said in an interview with us that it is not just a problem that can be solvedy central banks. >> monetary policy is not the only game in town. that's very important. you can raise rates more aggressively, but that's not going to ease supply constraints that are the underlying cause of the higher inflation. >> not just central banks. other people have to reach in and help out when it comes to fighting inflation. that's what we think about the governments of the u.k., canada, the u.s. in a position to do that. jon: we have looked at this through the lens of stocks, but let's talk deeper about the bond market. matt brill is the perfect person to have this conversation today. we have been having this conversation around the selloff in technology stocks. walk us through corporate debt and the reaction we have seen to the rising rate expectations. matt: it has been really challenging year for corporate credit thus far because you have investment grade credit down 3%. high-yield credit is down to 1%. it is mainly driven by interest rates. there are two components to b

tom: we know from blackrock's whaley earlier, she thinks that there are four or five hikes is too much. fran is on the ground in rome for us. fran is monitoring all of that for us. let us get the bloomberg business flash was laura wright. laura: chinese authorities are considering dismantling evergrande by reselling assets. this suggests beijing by officials call for the developer to sell off most of its assets. the exception would be for property management and its electric vehicle unit. lg has surged on its debut, south korea's largest ever. they plan to meet global demand for ev factories. it is the third plant property. intel reported earnings of 80% shares in the first quarter, less than estimates. a turnaround plan will weigh heavily on its performance. the ceo has made it clear that the company is in investment mode. that is the bloomberg business flash. tom: thank you, laura. fed chair jerome powell has signaled a march rate. the fed will act to cool inflation. here's what he had to say yesterday at the fomc conference. >> the federal markets committee kept interest rates at ze

it has sealed a deal to take over the space that houses the headquarters of blackrock. among the biggest property deals signed in new york since the pandemic began. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. coming up, the race to dominate the electric vehicle market is heating up. this is bloomberg. ♪ >> based on the demand we are seeing for our vehicles and the rest of the industry is seeing, it feels like demand is certainly there. the question will be how quickly can we all of us execute to build capacity to meet that demand? manus: the demand for electric vehicles. which could grow to 10% of the u.s. market this year. for doubling the capacity for its battery-powered f-150 lightning pickup truck. the carmaker says it is capitalizing and raising the output to 150,000 trucks this year. our global editor for autos. i could see myself in a f-150. a rebrand -- yes. dani in a miata. tell me this. how significant is doubling

one state has decided to step up and stop doing business with the investment house, blackrock, that makes a boatload of money in china. every state should follow west virginia's lead. great news. and by now you've heard about the part owner of the golden state warriors who said the quiet bar out loud in a recent interview. >> nobody cares about what is happening. of all the things that i care about, yes, it is below my line. i care about the fact that our economy could turn on a dime if china invades taiwan. i care about that. i care about climate change. i care about -- i care about america's crippling and decrepit health care infrastructure. but if you are asking me to i care about a segment of a class of people in another country, not until we can take care of ourselves library toys them. >> laura: and he cares about three quarters of looking perfect. what a sad little worships money above all else. but he is no different than some of the other business american business -- if companies have been allowed to sell technology and goes to the former soviet union back in the 70s, course the