those of you who know about blackrock's big problem the rest of you look up blackrock's big problem. and you'll know that they are the biggest. investor in climate destruction whether it be agribusiness for fossil fuel. and speaking of fossil fuel. these are the fossil fuel reserves in the amazon. you may have heard about chevron in ecuador occidental petroleum into watcher tory or northern peruvian amazon. that's in the western amazon dot in the most bio diverse part of the amazon an area that we call the sacred headwaters region. it is the most bio diverse culturally diverse part of the amazon. and it's in the western amazon and these are the fossil fuel reserves across the amazon dot these companies and governments would like to get their hands on. there are many protected areas throughout the amazon indigenous peoples territories that are protected in the amazon in ecuador for example. indigenous peoples have rights to their ancestral territories but they don't have rights to the subsurface mineral minerals so t goverent could still go in and- drill. a concession off territories.

he is the ceo of blackrock.s one company has an enormous amount of leverage to force other companies to go woke. >> want to have the highest performing stock in the industry. i think what i'm requesting is what i see from what -- where our clients' money is going. if they don't choose to do this, i think you're going to start seeing some of these companies having lower performing companies. if you are going to have high-performing stock over a long period of time, you need to be doing this and blackrock is doing it ourselves empty -- on behalf of our shoulders, our employees, and our clients. >> laura: how benevolent take larry fink will help the world that against pollution, climate change, and mean bosses. except in the place where all of that is rampant. china. blackrock is heavily invested there which means that it operates with the permission of its communist party. larry may want to check out the new documents detailing the horrifying abuses against uighur muslims going back to 2018. but i guess that is no

nowst one of the biggest promoters of esg is n a guy namd larry fink, the ceo of blackrock blackrock, the world's largest asset manager. and this means one company has an enormous amount of leverage to force other companieseso to o woke if they want to have the highest performing stock in their industry. i isnk what i'm requested is what i seeee from what where our client's money is going.. so if they don't choose to do this , i think you're going to start seeing some of these companies havinge lowerin performing companies if you're going to have a high performing stock over a long period of time, you needd to be doing this and blackrock is doing it on doing ourselves on behalf of our shareholders. we're doing this on behalf of our employees and our and our clients. how benevolent humanitarian larry fink will help the world fight against pollution and climate change, human rights abuses and mean bosses except in the place where all o of that is rampant. china blackrock is heavily invested there whichd means that operates with the permission of its communiststert party . and larry migh

what do i see a couple days later, suddenly blackrock walking itself back.ognizing harm they themselves have done. imagine what would happen if the energy sector in the u.s. today were able to produce more oil and gas rather than cutting oil and gas production especially in the context what is happening between russia and ukraine. i think they're beginning to see that they may want to walk it back to put the toothpaste back in the tune. i think they have crossed the rubicon. at the end of the day people don't want a soulless company, a company without a soul, investing assets what is politically convenient one day, walking it back the next. they want honesty, they want transparency. they want asset managers knowing their voices in market. charles: that is a beautiful thing, vivek. this thing is out of the control. honest people in the industry admit it is out of control. good luck. we'll check back with you. progress report in couple of months, okay? >> thank you. good seeing you. charles: folks the stock market often feels like a riddle wrapped inside of a

blackrock abandons its bullish call on china. softening sanctions. oil extends a slump as the eu scales back some of its planned curbs on russia. hungary sets progress over talks over an embargo. tom, good morning. bank of america says we are in a state of paralysis and not panic but honest says you need another 5% of a tanking day before the hurly-burly is done. tom: before the hurly-burly is down. goldman-s says swings will remain large into the path -- until the path of inflation as clarified. will we get that clarity on wednesday? the cpi is expected to come in softer. we checked in on the markets. $20 trillion in market cap wiped off global equities compared to last year. you are seeing that pressure. you saw it yesterday in terms of the bloodletting on wall street. the biggest drop -- down to a 13 month low on the s&p. dropping around 17% year to date. the futures point to a bit of moderation. nasdaq futures gaining 0.9%. technology was worse. you would not want to swap places with kathleen would after an almost 50% drop in terms of that etf on

this is one we're going to we're asking companies you have to force behaviors atbe blackrock.are forcing and behaviors anf you don't force behaviors, whether it's gender or race or just any way you want to say the composition of your team, you're going to be impacted. >>ed vivek, i had never heard that sound bite before we were getting ready for this segment . he wants to force behaviors.ur i'm surprised he was so open about it. but there you are. well,eas look, he was probably behind closed doors, but i'm glad somebody got it. look, everyday american citizens and ceos in thisot country need to need to see that larry fink is not our emperor. blackrock is not ourur king.e we live in a democracy and in a democracy citizens decide the questions tode fraught political controversies through free speech and open debate in the public square. and what we want out of our economy is for companies to pursue excellence for their products, for customers. that's it. and so that's a big part of our message and movement in corporate america is to tells these ceos that as a shareholder, the th

matt: how do blackrock clients deal with that? marilyn: inflation is peaked in is trying to come down. but that being said, inflation expectations have increased. over the course of this year, and also, there is a persistence of elevated inflation, even moderating a little bit. i think the key, as others have mentioned, there've been many sources of inflation. it is still yet to be seen. the full impact of those. whether it is the cost of energy, the cost of food, other supply chain issues as well. so, i think it is too early to say that inflation has really gone to moderate back down towards the target, for example, so i think, with a persistent inflation, it is the key, and it does mean that we will continue to see relatively elevated volatility as the market continues more clarity. >> we have passed the peak, but we will see inflation remaining elevated. certainly higher than the fed target. i want to talk about the dispersion, amanda, that you bring up, and the volatility, maryland that you mentioned. amanda, marilyn, and troy

blackrock say they are not seeing a liquidity crisis yet. dani: that optimism giving us that friday feeling. we're seeing a pretty strong rebound in equity markets this morning. china up more than 1%, or that is that loan prime rate cut. we will get to that in just a moment. up more than 1% on both europe and nasdaq futures. i would remind everyone this is a pattern we have seen, one step forward, two back. one point $1 trillion wiped from u.s. stocks over the past four days. the worst week since 2001 as the concern shifts from inflation. i love a little bit of triple witching. nearly $2 trillion worth of stocks expired today, adding to the wrinkles. manus: mohamed el-erian says perhaps we are moving to the next phase, which is the second drug effects. -- round effects. yields are rising again this morning, oil is down at the prospect of mohammad bin salman and president biden meeting. that puts the possibility of opec adding more oil at over 15%. mr. yen was with bloomberg today, and he said the bank of japan would only become concerned if

there's a big debate about this blackrock issue. blackrocks or american firms out of it and they're not allowed to vote their share, who then actually has the power? not individuals, because most individuals in the u.s. do not have the power the large, norway's pension fund, the folks in the middle east they they're the ones who would control the market is that a good thing >> that may not be a good thing either, but i can tell you, having people controlling billions, hundreds of not their capital, they used to vote -- listen, ten years ago, they would have voted in a way they were trying to maximum shareholdervalue that made sense. what's changed is the rise of woke capital what's changed is too much of wall street and too many of the fortune 500 ceos are more focused on politics. i got to say, after what happened to disney in florida, that may be changing there may be a few ceos looking around going, you know, maybe we ought to focus on selling a better mousetrap and not on being the most left-wing political activist, but it is da

bank of america, blackrock, jpmorgan, wells fargo, u.s. one, morgan stanley, i'm sorry to go through the list everybody has ownership, i don't mean to rub it in, losses in some cases 30 plus% from the highs. what do you think now? >> well, to me it is no surprise that financials are off as much as they are, markets are increasingly pricing in risk of recession. that's not our base case as you know yet so we're currently neutral i am tempted, seduced by goldman, sachs and wells fargo, but we own jpmorgan and black stone. i get a lot of twitter hate on jpmorgan calls i made on the show, unlike weiss who thrives on it, i have thin skin. we are not going in, not because of the twitter to wells and goldman because we don't think it is time yet we're pausing and owning what we own. >> speaking of, pete, goldman, sachs. that was the one stock that you either own or bought this year >> yeah. goldman, sachs it was around the 312, kind of close to where it is now, a little below that based on the jump it is having today, scott one thing i would add,

blackrock's holding their cash with both hands because in a normal environment you have cap stocks and bonds shipping out of stocks into bonds and cash. right now you're getting all those funds out of stocks and bonds. that is leading to that huge spike in a demand for cash as well. >> what is looking to be very rate sensitive, similar optimistic it investors they had been hoping for, just a few months ago we were looking at the potential recovery when it comes to the likes of kathy woods flagship fund, bitcoins, cryptocurrencies, high-growth, high-risk, high reward names are continuing to be pummeled. these pandemic euro darlings, -- you're a darlings are the new symbols. , these public companies that were potentially to outperform bitcoin prices falling along with the overall market sentiment. >> what a u-turn when it comes to the overall market narrative, without some of these stocks would be spared the selloff, let's get a analysis of the market moves. also our economics editor. we are seeing u.s. stocks close to bear market, down 17% since the december pretty? -- peak? bank of ame

francine: karim with an eagle eye view of the markets, and a view of flow land, from blackrock.elecom italia is seeking $21 million for its landline network. that's coming up next and this is bloomberg. ♪ francine: welcome back to the open, everyone. 23 minutes into the european trading day, seeing pressure on the european stoxx 600, inflation going up, the price of oil going up because of the embargo on russian oil, and that is putting traders on the back foot of saying if central banks move too fast to curb inflation, will they heard world growth? this is the big picture per world movers, there is quite a lot of m&a activity. dsm purchasing the swiss firm, gaining almost 10%. unilever with the story of an activist investor nelson peltz who is known for shaping up retail, named as a non-executive director, investors liking that. credit suisse with pressure, stock down 2.8%. now for the bloomberg business flash. laura: telecom italia is said to be seeking evaluation of $20 billion for the landline network it plans to sell to a state lender and international funds. it would allow

the likes of blackrock, the likes of people who like to take large amounts of risk.e people are somewhat insulated now, but what this does pose is a problem... we don't actually know who will come out of the woodwork to collect those payments, but the next two weeks can be crucial. the other thing to remember is two—thirds of the russian coffers, which currently stand at around 600 billion, are sanctioned, and we don't actually know. they spent about a0 billion propping up the rouble to good effect, but we don't actually know how much of that, around 200 million in real terms, of that, around 200 million in realterms, has of that, around 200 million in real terms, has been left in their to support the russian economy. so all of these permutations have not really come to light, but one thing i will say is george soros in davosis will say is george soros in davos is basically saying it is the end of civilisation stop i wouldn't really go that far, but one thing i would say is blackrock of this world who had invested before, they may be big, but they are not stupid. we

doing this now, a man who has been holding a fair bit of cash, the portfolio manager of the blackrock global allocation fund. you have been holding a higher cash level than normal going into this. what have you been doing with it? guest:guest: good morning. we have not been doing much. we have been holding a high cash level. a little bit of an underweight to equities relative to our benchmark, and it represents a big underweight bonds, which thankfully, that has been the right trade year to date, but we think we are getting closer to a point where you want to bring some of that back, you are probably not there yet. this question i think is the right question. when you look at the sentiment numbers, clearly there's a lot of pessimism in the market, more than we have seen in years. the flipside is we have not seen inflation like this in years. to me the big issue you have to resolve is how far is the fed going to go, how much do financial conditions tighten, and what is the right multiple in an environment that may look somewhat different than what we have been used to. tom: you have a

blackrock's gargi chaudhuri will be joining us. that is next. this is bloomberg. ♪ kriti: back to our question of the day, are we passed peak hawkishness? joining us now is gargi chaudhuri of blackrock. thank you for joining us. an historic moment when you look at whether the federal reserve or the boe this morning, two main issues, inflation versus growth. are we passed peak hawkishness? your take. gargi: thank you for having me. i would say for this week, yes, we are past peak hawkishness. the markets read a sigh of relief when we learn from the fed that at least 75 basis points was off the table now, not actively considering it. and we were given very good guidance over the next couple of meetings, 50 basis points. for now, we are, but that doesn't mean that the data that will, over the course of the month, most importantly the data on inflation, mom that lead us to price in further rate hikes. more 50 basis point rate hikes, i don't think we will get to a 75 basis point rate hike anytime soon. guy: the market reaction to the bank of england

let's get over to our chief aipac strategist at blackrock investment institute. you look at what li keqiang, and it is quite an admission, quite often they underplay these things, and if it is being underplayed, it must be the chinese economy is in a rather parler state -- parlerd. state. >> yes, interesting and unusual for a figure sitting near this to address hundreds of thousands of officials all the way down to the very local level, saying that we need to get unemployment down immediately, very fast, so that is somewhat encouraging to hear, but the market remains a little bit cautious. we have seen some false words that sounded encouraging, but so far we have not really seen the follow-up action, the concrete actions coming through cross the policy space, a little bit here, a little bit there, nothing in the shock and awe category to give markets confidence to move forward from here, so really interesting that markets are still in a weight and see -- wait and see prove it to me mindset where we need to see more concrete tangible action defined a bottom and so

citadel, blackrock, playing a big role in this.n you look at the sandwich of, the bread you have, monday where we got the trust act announced as possible stablecoin regulation coming and of course terra luna, or ust, the stablecoin for terra luna, dropping dramatically losing its peg in the middle. and the other bread, janet yellen talking about regulation. they set it up, this happens in the middle, all of sudden janet yellen is calling for regulation. from all appearances it looks 100% deliberate. i will say regardless whether it is distribute or not the fact too many times in crypto we focus on the outcomes. we focus on 18% returns, how exciting that is. people forget the process is more important. the process and fundamentals laid out in exploitable opportunity for this to happen that was built into you know, to the tokennomics of terra luna. charles: who patch this is up? federal government wants to exploit this, who knows, my been part of the implosion? who patches this up, particularly this doesn't happen to a stablecoin? >>

rowe price very price again, high quality operating and blackrock as well.gs are in the ballpark of being correct, you might consider them to be leveraged bets on the markets finding their footing because they're going to have a magnified effect as markets do better obviously there's always a risk that doesn't happen, but this shows you that the market has already cheapened them to some degree. >> are we seeing a corresponding amount of outflows >> you're seeing the beginnings of outflows. only 3 or 4% of the money that flowed into funds in general last year have come out. the fear is that losses build up and people decide to flee or at least no inflows are not going to be likely any time soon. >> mike, thank you we will see you in the market zone. >>> up next, former treasury secretary jack lew on whether the fed's aggressive moves to fight inflation are increasing the risk of recession. (vo) this is more than glass and steel... and stone. it's awe. beauty. the measure of progress. it's where people meet people. where cultures and bonds are made between us.

. >> and they're the only manager that, i think it's blackrock, they're the only managers with such a benchmark which is the lowest possible benchmarks, meaning u.s. treasurys? >> that's correct. we have mandate which blackrock oversees and it's an implement strategy. >> that benchmark shouldn't be claimed by any other manager in the benchmark or to satisfy our needs? >> no. the treasury have a very specific role in our portfolio, so for another manager to claim that treasury at the benchmark, one, they would have to trade treasuries and that limits your risk to just duration risk. managing up and down curve, not taking any spread risk, no credit risk and credit risk exist in mortgage and corporate bonds so that manager would be no credit risk. and have to maintain a liquidity profile commissariat with treasury. bottom line, it needs to be a treasury strategy to have -- >> noun of the portfolio manager were hired to be the u.s treasury? that's not incorrect objective? >> correct. >> thank you. that concludes my questions. >> any other questions from the commissioners? hearing none. ac

is screaming at them >> it's not solely because blackrock.n the world saying the same thing, blackrock, state street and vanguard. but when they all tell you the same thing, the shareholders ultimately have power to direct the way the firm operates. that's what we're seeing today but the real problem is the people who claim to be the shareholders, the black rocks, the state streets, they are not the actual shareholders, it is their client bases that would want chevron and shell to be behaving in different ways than they are today that's the disconnect that i think we need to address, and part of what we're missing here is that there is no diversity in the market place of ideas and capitalism there is one ideology, stake stakeholder capitalism >> why do you think that that, why do you think that that's the case meaning, if all, why, why do you think that these four firms, which you said control the market effectively, all have the exact same view. isn't that a result to some degree of what they, what they must think the customer wants? you wou

blackrock said it's not their investment decision are governed by fiduciary duty to clients' financial above financial commitments or pledges. this administration is out of touch. inflation is going up. markets going down. we are all getting punished. brian: mr. mayor, you meet more people on a daily basis than most americans. what has the rising inflation rates done to the american family. >> most people who are the lower part of the income spectrum have their money in banks that are not earning interests. rents are through the roof across urban america. i was talking to the mayor of austin and new york and denver. rents are up in all our cities over 50%. this is a socialist model gone wrong where government spends more than it takes in. you have a supply chain shortage that exacerbates the problem. they think more government is the answer but it doesn't work. in some states in this country people are paying more than 50% in taxes. that means you work for the government. it's destroying cities like it destroyed the countries of venezuela and cuba. brian: the president is cutting a dea

stuart: who do you say the big three, blackrock, who else was there?rd and state street, the three largest asset managers, block rock is the biggest. >> they are your targets? >> absolutely. we will compete with them head on. one of the things that i talked a lot, stuart, there's antitrust problem. part of the problem and the arizona state attorney general is investigating this according to recent piece that he wrote, if you got the ceo's of the mayor oil companies in a room and they decide today cut gas production and gas prices spiked as a result, that would be an obvious price fixing scandal. but now the top owners of the firms are guiding them to do the same thing we celebrate the narrative under the esg. the best solution isn't state action or government action, it's competition through the market itself and so we are going -- jokingly say help them fix theabout trust problem, that's the good news for them. the bad news is by taking market share, that's certainly our business plan. stuart: thanks for being here. thanks so much, sir. >> thank you.

manus: blackrock removed its bullish call on chinese equities yesterday.hat would you need to see from chinese policymakers are on the ground with covid zero to change your view on china to become more positive? >> that is an interesting question. we get that all the time. when i come to bloomberg i get asked this and finally i think we are seeing more positivity. i wouldn't say positivity but less bearishness from our side. we have added to opposition in asia and japan recently. we see a number of factors. first, historically speaking we think this is a good indication of credit slowing in the economy and that is supportive of the market. we have started to see a decisive turn in tone from officials in terms of supporting the economy. >> tone, but not reality. >> the economy gets worse, and they will probably action more so i think that is a good sign. there is a lot of bearishness already baked in. if you asked that a few month ago we wouldn't say that but we are at the point where there is peak bearishness and we are seeing policy support. we think ther

pimco and blackrock set to start debt talks.t group, sri lanka defaulting for the first time in history the economic meltdown has led to an economic crisis. $250,000 to -- who said she was sexually harassed by elon musk on a corporate jet. he calls the accusations untrue. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create [applause] >> thank you. very generous. president, thank you for that introduction. it is great to be back in south korea. i am honored by the we

restructuring could take six months paid as a reminder of who is holding that debt as fidelity, blackrock, ubs. let's get back to the markets. the steepest route in two years for u.s. stocks and here is how investors have reacted. >> we are playing into more conservatively than aggressively, both on fixed income as well as on the equities. to your point, dialing down areas that are high-yield or areas like that. >> it is a different phase of investing and it takes different approaches. your best approach is to go back to neutral to some degree. >> today is more validation that the consumer is not as strong as we thought it was, that we are starting to see inflationary pressures affect the earnings on companies. >> the consumer is getting weaker from the bottom up, so from the lowest level up, and it remains to be seen where that stops. tom: let's get into the key market drivers with nour al ali and charlotte ryland, cohead of investments at ccla investment. are we seeing capitulation in the equity markets? nour: not yet. we are going to see more hurt. if you look at volatility in stocks a

employees and a lot of ceos would love nothing more if the actual liberated from the monarchy like blackrocki think that's what working to get hopefully if efforts like ours and those other efforts at spawn up our successful. >> absolutely love it's incredibly important, just before we go a people want to know more about it or get involved, how can they get involved? >> we've been flooded by applications after the large three asset managers with people say they're fed up with that, columbus, ohio anybody wants to work here, find it strive fund.com submit a job application that way but i hope this is the beginning of a larger movement we will hear a lot more in the coming months and years ahead. steve: absolutely. we are right behind you, well done on this. fantastic. we will be back after the short break. steve: we know that congress is wildly unpopular confidence in our lawmakers and the musical 20%, that begs the question if our so-called leaders that unpopular, why do they keep getting reelected over and over and over again. our next guest says the root of the problem as part of the prima

and so the question is, is it to take the power away from a blackrock or a state street to vote at alle them the option in some cases that's what's happening now. that option is there in a way that it perhaps wasn't before. what's the right answer in the balance? >> it's a really good question and it's a combination of both and i know you've talked to larry fix. black rock is already starting to do this themselves. and remember, they don't dig into all the details of each of these companies either they invest in the broad-base index funds. so it's not as if they're getting involved in the nitty-gritty of each of the companies they invest in, in terms of management, in terms of what they want having done for that company but i will tell you this i think it's a little condescending to say the average american doesn't vote the shares, which is true, therefore, they shouldn't even have the opportunity or power to do it. in many ways, not voting is a vote itself. so to me, it's both too much power with these index funds, who were never meant to dominate corporate governorance but to make su

scott thiel, chief fixed income strategist at blackrock stays with us. this is bloomberg. ♪ >> if inflation doesn't break soon, he's going to have to hit the brakes pretty hard. that will put us into a recession. >> people who have benefited from this extreme low rate, high liquidity environment where all manner of growth have been rewarded, that is where the greatest correction will come. >> it is unfeasible for economies, for human beings and their livelihood and well-being to shutdown down the fossil fuel industry. and i think we are seeing the slide in europe with the russia crisis. >> we are heading towards a 4% rate by the end of the year, he has a lot more room to maneuver rates in 2023. tom: ken griffin and jane fraser among the speakers at beat milliken global conference which focuses on confronting the issues that keep us apart. let's keep across the bond markets, the rba hiking more aggressively, a 20 five basis points versus expectations of 15. and looking ahead to what happens with the fed decision on wednesday and currently the sella party

pimco and blackrock are among the firms to -- the sri lanka suit.ton is also among the members of the creditor group. sri lanka is set to default for the first time this week in its history. this is amid lockdown, protests, and a political crisis. the world only has 10 weeks of wheat consumption left in reserve. that is according to agricultural analysis from grow intelligence. other estimates are not as dire. still, high crop prices are putting millions at risk while grain supplies for. -- fall. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom. tom: thank you. coming up, we will round up what has been a volatile week for markets from what we expected next week as well. that is up next. this is bloomberg. ♪ tom: happy friday and welcome back to the open. we are 52 minutes into european trading day. a solid session so far with the context of the rallies we have seen the past few weeks. whether or not this is a bear market rally is one

you also have several firms like blackrock and citadel claiming they have nothing to do with terra.nwhile, let's go to the bloomberg once again. bitcoin got crammed. you're looking at the galaxy index, bitcoin ball, he owns the galaxy, it is down 64% from its peak. a lot of confidence rattled here. though we do see bitcoin coming back in asian trading along with a lot of the other digital coins. >> su keenan there. cryptocurrency, lessee was going on with -- lets he was going on with terrausd. with that said, the position we have, cryptocurrencies, underpinned some of these key decentralized finance protocols, snapping as its plunge, but coming back here as we see a bit of stability, coming back. we have a slight away from these popular digital tokens. in tokyo 5.8%. just to the downside. we have a lot more coming up. this is bloomberg. rishaad: 11:29 a.m. at the imperial palace in tokyo. the lunch break in just under a minute. stocks falling. negative. the broader market off. some recovery for the yen overnight. it went below 1.30 level. we are seeing exporters decline in the sessi

it is time for morning calls ahead of the asian trading day, blackrock saying it is cutting its recommendationsutral. flagging concerns over slowing growth, and fed tightening, not to mention china fears. u.s., japanese, chinese talk -- stocks look less appealing. saying it is too early to turn bullish on u.s. stocks. he says the s&p 500 dropping lower than current levels. growth areas like consumer spending emerging at a lower level, stocks better reflect earnings challenges. >> coming up next, j.p. morgan investor day that the u.s. economy remains strong, potential obstacles to growth are not set in stone. we will talk more about this next. this is bloomberg. ♪ >> strong economy. storm clouds. i'm calling them strong because because they are storm calls, they made dissipate, if there was a hurricane because it was a tsunami like 07, 08, we can handle all that. >> that was j.p. morgan seo, at the banks investor day, that's bring -- coo at the banks investor day, he was optimistic about the headwinds we see at the moment may not be permanent or at least long-term. what does he have to backup th

manus: and i know people vaccine late, but blackrock saying we are in a period of maximum uncertainty vis-a-vis china. let's bring in that a vendor felt -- eddie van der walt, he is with the mliv team. there is no doubt, this is part of the bullish narrative this morning. but of course, it's got a major consequence for the oil market as well, because that has lit up on the back of may be reprieve in china. eddie: if we see demand bouncing back in china in any shape or form, that will spur demand for commodities. the commodity markets have been in total flux, if not for the last be years. so i think if we see any sort of a bounceback here, it is not just going to be oil prices, it is going to be copper, the broader commodity complex that will be seeing a significant bid. i think that probably stays because of the uncertainty we have had over the last be months . manus: paul, let me bring that back to you. eddie is excited about maybe a continuation of the commodity boom, goldman, of course have called time on the battery elements. if we are in a new reopening explosive commodity phase,

juliette: one of the things that royal markets yesterday was blackrock. we have a call through from goldman sachs and morgan stanley today. david: let me start with the goldman call. they're removing taiwan and taiwan is underweight on market rates. within the aussie market they are talking about things like metals. they are keeping the risk in china, indonesia, and singapore overweight. this is what they are saying that is behind the rationale. when he percent upside is what they are expecting on the -- 20% upside is what they are expecting on the msci asia specific. -- asia-pacific. i'm going to make this simple. they are seeing a delay in the final leg of this bear market and to see for china. this might be the final leg of the bear market. they end on the price target for june of next year. that has upside for varying degrees of tightening digits from crib -- for crypto. juliette: let's get the first word news with vonnie quinn. >> consumer prices in china climbed again. pti was up 8% from a year earlier, above the estimate. consumer prices accelerate

. >> and they're the only manager that, i think it's blackrock, they're the only managers with such a benchmark which is the lowest possible benchmarks, meaning u.s. treasurys? >> that's correct. we have mandate which blackrock oversees and it's an implement strategy. >> that benchmark shouldn't be claimed by any other manager in the benchmark or to satisfy our needs? >> no. the treasury have a very specific role in our portfolio, so for another manager to claim that treasury at the benchmark, one, they would have to trade treasuries and that limits your risk to just duration risk. managing up and down curve, not taking any spread risk, no credit risk and credit risk exist in mortgage and corporate bonds so that manager would be no credit risk. and have to maintain a liquidity profile commissariat with treasury. bottom line, it needs to be a treasury strategy to have -- >> noun of the portfolio manager were hired to be the u.s treasury? that's not incorrect objective? >> correct. >> thank you. that concludes my questions. >> any other questions from the commissioners? hearing none. ac

zach: larry fink of blackrock said the next trillion dollars of 50 unicorns will be these companies.at is going to make or break whether or not that happens? obviously the problem is real, but investors want returns. will those returns happen fast enough? zach: these companies are more capital-intensive, but there is going to be insatiable demand for high-quality public equities that are addressing the climate. our pathway is we are going to back these companies at the early stages and ultimately get them public. there will be huge demand for these stocks. not to mention they will be profitable because they are solving trillion dollar problems. emily: is the government giving these industries enough support? zach: the government can always be doing more. we don't back regulatory change. or perspective regulatory change. i want there to be regulatory change, but we don't view that as venture back about. the government could put in a -- this is very much a capitalistic endeavor. >> what more could the government do? >> the government could put in a carbon tax, which has been pernicious

alix: joining us is blackrock head of investment strategy.he recessionary impulse for europe in a base case scenario? how bad could things get in europe? >> when we look at europe, the recessionary risks are little bit higher compared to the u.s.. given the higher stagflation reports coming from the inflationary stocks we are seeing in the more supply chain shops we are seeing but also at the energy level, the base case probably still slow down. the peak in growth numbers is clear and we are seeing a slowdown of activity data but not an outright recession. although when thinking about investor positioning a lot of investors are considering how to position for more risk. guy: let's talk about that in more detail. our base case we were see a recession. it is the base case we will see the gas cut off. they are not negligible risks. as an investor, how should i think about how i hedge that risk? karim: as an investor this is something we need to be considering how to position for these risks and portfolios. we are seeing this come through at a co

funds want out and target and consumer stocks, morgan stanley will go around and borrow a bunch of blackrockurn them to black rock and receive in exchange an equal value of shares heavily weighted to walmart and target. because that is not a customer transaction -- this is morgan stanley p operating on its own and turn around and buy puts on the basket and short the futures which are expiring all of that volume is dumped at the open of the market and the stocks get crushed it has nothing to do with rational thought it is all about market structure. >> i appreciate the compliment i'm a market geek. you described the frustrating part of our job. trying to find a headline. we can't come on the air and sa i don't know i'll talk to the guys and say what is the gamut on the trade i want to know the swimmng tim, let's say i go out for dinner and they have ten nightly specials on offer. ten people in the restaurant it should be fine. there's 30 people from outside online who are going after it. maybe artificially, the same special. is that kind of what is happening with etfs where it expands access,

the country presents an opportunity for many in the industry, blackrock, too, started to own its venture sachs did similarly. it is complicated for banks that are trying to expand, navigating this very sensitive geopolitical climate. jp morgan knows this very well. that is more than others. the ceo made a quip about jp morgan outlasting the communist party, which he was forced to say he regretted. it is a very complex situation in the country. banks have to navigate this tricky path very carefully. >> we remember the strap ubs found themselves in as well back in 2019. sally bakewell there, with the latest on the story. same with china, the head of the who, with a rebuke of china's covid zero strategy, saying the efforts will not work, to completely eradicate the virus. stephen engle is in hong kong with the latest. what is the chief saying? we heard a similar warning from anthony fauci himself. >> i think these comments will carry more weight in china than dr. anthony fauci has to say -- than what dr. anthony fauci has to say. but what the who director general is essentially saying, firs

people are waking up to the asset managers, their highly powerful, blackrock has $9 trillion it is notare afraid they will not attract investors. were waking up to the fact the esg. his inflationary, if you're telling exxon not to drill a lot guess what they will not drill a lot if you say we are not when you invest in your company they will not drill as much. that's good to go one it may work when there's a non- inflationary environment. guess what's happening in inflationary environment, things go nuts and that's what the reason the market is selling off i will say blackrock he is a we said let's get a transition to esg let's not go overnight, the problem many, many consultants are working with pension funds and other funds that are saying we want to stand overnight and it causes massive changes in corporate america. now there's a backlash, andy puzder a friend of ours, let me get the name of the sea as a fund that is anti-woke i found really interesting second woke advisors do the opposite of the stuff i shouldn't say that they don't use the esg filters. >> they focus on profit whic

that's what blackrock says, they may overreach. it is beginning of davos. let's get back to the slopes. we won't ask her to sing the sound of music. francine how are you? francine: we won't sing the sound of music. but we will ask francine -- ask christine lagarde about the blog post. imagine the nightmares, you are the president of ecb and you have like six people giving interviews and the hawks are pushing to tackle inflation and the other ones have less of a voice. we will see what she says on that and the way forward. but i am delighted to talk about what chief executive think about inflation and central banks. richard, thank you as always. i love our davos catch up. this year, chief executives are worried after two and a half years of craziness they have had. >> i think the big news for the trust monitor is along with running a good business, societal issues like diversity and inclusion, sustainability, now they have geopolitics. geopolitics is rated just as highly by the public in terms of corporate responsibilities, and in fact, if you left ukraine,

rob miller of blackrock said they don't have the luxury of being data-dependent.u think they can become data dependent again? kathleen: it is a good question. i think the our data dependent, but part of the data they are looking at our broad financial conditions, so that is going to include equity prices, the dollar, so how they see financial conditions evolving is going to help them calibrate where they think the fed funds rate is going to be, but i think right now, front and center for them is taming inflation, and that is what we're going to here for now. as we progress through 2022 and if things slow a little, they may pull back a bit on that really hawkish rhetoric. lisa: what would be a restrictive fed policy rate? kathleen: in our view, anything above 2% would get you to restrictive. the federal reserve thinks it is 2.4%, so there's a little pension there. markets probably a little closer to our view, but it is an unknown. it is an estimate that is very difficult to pin down precisely, but certainly once you get above 2%, that is going to have some ripple e

thank you for coming in crude from blackrock, just getting some outlines coming through from governor adrian or who has been speaking after we saw them lift the cash rate by half a percentage point to 2%. the board agreeing that stabilizing inflation was a priority. governor or saying as i mentioned they are resolute in their commitments. they're saying labor shortages are the largest constraint on production, but they are confident that households can cope with higher rates. the neutral cash rate is in the two to 3% range. and the economic headwinds that they are seeing our strong underlying strength, remaining in the new zealand economy. the rbz talking about how they raise rates to 2%. that has certainly been seeing new zealand bonds reverse in gains in the kiwi rising. you can turn to your bloomberg for more on this. go to tliv to get commentary and analysis from bloomberg's expert editors. rishaad: yep. resolute in commitment to price stability. others of course also looking at monetary policy rather closely in this part of the world. let's get more on that as we get to the

companies like blackrock found in the asset management group, crocses in the footwear,crm in terms ofoftware, don't forget, amazon and disney these companies have been mercilessly pounded. we still think represent good buying opportunities. liz: look at sales force down 3 1/2%. over the past year you know what these stocks actually looked like. crocs as you said, disney. disney is an interesting one. can we cycle through these so we look how they have been looking past year, when you see this business is not going away. michael if these are the points that sam looks at, standard deviation there, well below that, what do you look for, what names fit into what it is telling you as a screaming buy? >> in this environment i want to focus on earnings and also companies that have valuations support. i'm not talking you know price to sales. i'm talking price to earnings. so i want to look at a couple of companies i think will grow 10, 11%, earnings growth next year. they trade right at around, i will say on average around 12 times earnings. the first one is comcast. comcast, they really do h