there is an etf for every perspective.e seeing the regulatory environment continue to change for the etf market. what are the biggest developments? reggie: around the world, it is customer first. we are seeing lawmakers in canada and the united states. where now there is fee disclosure and eds are being used in lieu of asset managers. in the united states, a fiduciary role. forcingawmakers are financial advisors to put clients first and look for the best vehicle. and they are priced competitively over other vehicles. reggie browne, thank you so much. the cohead of etf's. -- we nown to burke turn to mark crumpton with breaking news. is reportingll that donald trump has selected indiana governor mike pence as his running mate. bloomberg news has not independently confirmed this information. the new york times and cbs news are also reporting that donald trump has chosen governor pence. he has scheduled an event tomorrow at 11:00 a.m. new york time, at which he is selected -- at which he is expected to announce his running mat

to avoid taxes in the etf structure. they have gone full on into etf offerings. this is to their attempt to ride the retail waves. a lot of projection shows the etf assets are going to double and triple over the next five through 10 years, to the point where it could be 10 trillion globally. they are all coming out with etf product lines. offerings,their etf some of their efforts are paying off. at 37 billion that is less than 2%. >> even if they are not the issuer, the owner, the market makers. by the market making they make the piece of that. market making will give more revenue than offering etf's. market making the 2 billion and trade is 20 billion per year. right now the market making is profitable. the etf issuing side will be more profitable than the market making side. it going to be hard for the banks to get a bigger piece of the market? >> the market is an error talker see. --is an error talk receive aristocracy. >> thank you so much. we will have much more coverage of bloomberg markets. mark: you're watching b

coming up, the dive into the etf market. how does the earning seasons affect etf?is bloomberg. ♪ mark: you are watching "bloomberg markets." i am mark barton in london. vonnie: i am vonnie quinn in new york. time for the bloomberg's nest flash, looking at the biggest stories in the news. thirdn posted its straight loss. sales keeping pace with slowing supplies. chevron ceo responded to the market driven cash squeeze by shrinking drilling programs and firing 1/10 of the workforce. tosing five million dollars $10 million from asset sales. fo -- federal regulators putting more pressure on wall street banks. new guidelines were issued three years ago. tankers are being questioned about loans, such as acceptable's. regulators want to sue know how loans perform under adverse conditions. businessour bloomberg flash. time for the etf friday segment. let's go to julie hyman. julie: i asked if we could look at etf's affected by earning season, since we are in the thick of it. he delivered. let's talk about the vanguard total stock market etf. some are affected by earning sea

mostly fixed income investor, but also in etf's. 150 actively managed etf's.hey have failed to really gather assets. seachangeis this huge of money going from active to passive. ch is swimming upstream here going from 600 million to 2.5 billion. that is the fastest-growing etf of a midsize level and it is active, and he is slightly underperforming. julie: is it about his performance or his name and reputation? >>'s reputation. if you are a rock star, it trumps everything. we saw this with bill gross when he launched the pimco total return bond. then he left and the petered out. end, jeffrey gundlach is hot right now, and everybody knows in. but here is the thing. he is sort of the last of a dying breed. beyond him, can you name any famous fund managers? julie: certainly not with etf's. if buffett launched an etf, it would be an instant home run. just sit back and watch gundlach defined the ontario. julie: and there is a bit of caution if this has been underperforming. points.sis that is more expensive than his institutional class but cheaper than his retail cl

yesterday, we covered some of the big etf's we wanted to reach.ng us from princeton, he for bloomberg television. great to see you as always. you have fourth at some of the various events in the news and linked to various specific etf's to them. the first new etf we are looking at is the leak of those e-mails from the democratic national committee. you are looking at potentially one beneficiary, which could be cyber security stock. >> yes. this is a high profile week. every government and every company out there just does not want this to happen to them. not only will the government probably increase spending, but the company will. they see the revenue doubling in the next four or five years, and there is an etf to play it. a cyber security hack. this came out 10 days after the infamous sony hack and it went up 33% after that event. it then sold off, it is very volatile and that high-profile event was enough to send this up into triple digits and it reached $1 billion, rare for this product. these things are usually taking money based on performan

we were the third commodity etf, the first oil etf and the first single commodity etf.'s numerous commodity etf's. mlps, real estate. it's given the investor all caps of ways to play the market. low-cost and strong convenience in terms of etf structure. 12nie: you've launched specialty etf's. how do you attract smart beta money? john: are broad commodities etf's rules-based, it does the same things as smart beta products. it is rules-based, using selection methodology in terms of which commodities it allocates to. how do you manage the rebalance here to avoid hedge funds run running you -- front running you? john: that was a concern when we launched. we typically have not seen it happening. we are very transparent. etf's have to be transparent. it is not unique to us, but we have not seen a strong affect. having been in commodities the last 10 years, using a lot of ups and downs. give us your assessment of where oil prices are going. john: the oil prices are under short-term pressure. i'm not surprised to see the downturn we've seen the last couple of days. my optimism

however, a lot of etf's are profitable. come out% of etf's with the future.n you think of 7000, that is nowhere near the amount of mutual funds in the world. everybody is focused on them now, but they are nowhere near the size of the mutual market -- mutual fund market. patience do new etf's need to attract buyers? eric: you have to wait a while. only 5% of the 40% that have over $100 million or 3% old. mutual funds come with distribution fees and loads .oul, the whole system makes it easy for funds to get money. etf's do not have that. they have to make money the hard way. they have to sell their idea and hope that what they track, the stars aligned, and maybe they outperform or show value in other ways. that is why etf growth has not been faster. some people say etf's are but not sold. the trend went from passive to active and it looks like we are returning to sort of the passive trend again. is that the case? eric: yes. if you have seen this year, you can see $76 billion out. over the past seven years, we have seen virtually a $2 trillion swing from active

the etf tracks dead markets, and top investors.imists counter that interest rates are not about to rocket higher any time soon, meaning investors can breathe easy for now. more importantly the market has weathered a series of tests over the last year from china's sharp devaluation and august meltdown in stocks, to the federal reserve's first rate hike, to the european debt crisis. read more on bubbles and the quick takes on the terminal. that is your global business report. go to bloomberg.com for more stories. ♪ ♪ shery ahn: this is "bloomberg markets." i am shery ahn. vonnie: i am vonnie quinn. emerging markets etf. investors put $4 billion into them. which ones are seeing action? the analyst for bloomberg intelligence -- etf, obviously we saw a lot of turmoil. which ones? >> the brexit is over. you have a risk on attitude that hit investors. we look at which etf's took inflows. the one that caught my eye is the biggest one. it has been losing to cheaper products, mostly retail investors. em got hit hard. the average five-day vol

this is the intraday look at the turkey etf.'t know if we can get an after-hours look at this etf. it is closing down 2.5%. it closed below 41, and we are now 39. don't you blow that up and we will take your screen full? that is a fairly severe drop for the turkish etf. the currency getting crushed, turkish stocks going down across the board as people try to figure out what this means. it's not clear. you have different statements from the turkish army, the prime minister, kind of complicated. most fascinating things as we are getting headlines on the one hand from the prime minister, who is saying you cannot call this a coup. there is an uprising within the army. we are currently quelling that uprising, essentially saying the government still has control. on the other hand, a statement from the armed forces saying that we have taken control of the country and say they want to restore freedom and democracy, and and very interestingly they say that they will ensure all international deals continue to go through, ensuring all inte

as for etfs, in most cases these are for trading, not for investing. many etfs rebalance every day.y're not set up for long-term performance. there are some exceptions. the etf that i like if to play for gold, but if you're not a pro and not managing a portfolio and not day trading every single day, you probably shouldn't be fooling around with those etfs either. at the end of the day, a cheap s&p index fund is the least bad way to manage your money, better than the bulk of mutual funds. and if you do have the time i think you can beat the performance of an index fund by picking stocks yourself, which is the entire reason i do this show every night. if you don't have the time, though, then don't overthink it. just one cheap s&p index fund is indeed the best way to go. mary in maryland. mary? >> caller: boo-yah, jim. >> mm-hm. >> caller: i started listening to you a while back. then i started buying stocks on your advice. >> thank you. >> caller: now i'm looking at my portfolio here, and jim, jim, mine eyes have seen the glory. so i want to get a little fancier and perhaps buy some c

apple is the top holding in five out of six etf's.n apple went down about 70% it took $4 billion rate out of it the f. the one i'm watching, the spider tech ecf, the qs have health care, and apple is a bigger waiting at 12%. if you see something bad in the apple turning, it has lost a couple billion this year and could get worse and if that happens, look at some of the smart beta to see some action. at the a 1% weighting, that lord forher way for people who want to play cap and way less apple in the etf. >> thank you for joining us. ahn, thank you for that. still ahead, the end of an era for yahoo!. horizon intense do with the one time internet pioneer. take a look now. the dow jones industrial average aboutbout .5%, 92 points an hour after the open. the s&p 500 down almost half of 1%. the nasdaq is down .2%. the vix, above 13. mark: it is a similar story here. drifting lower. lower.following you the stoxx 600 is down for the third consecutive game. that is the worst losing stretch since july, a small gain in germany. stronger-than-ex

we can increase etf purchases.e can increase dollar loans, but the boj is already the biggest owner or investor in jgb's. its balance sheet is 80% of japanese j gp -- jgb. is monetary policy exhausted in japan? we are close to making that statement. consequently there is pressure to take fiscal action. i think it has been largely leaked and the japanese media this week that we will see this fiscal program of close to ¥30 trillion. a component of that could be the development of an infrastructure bond market, and one thing you might see is because infrastructure has a strong multiplier effect, that is quite effective to reboot the japanese economy, and the world bank estimates that infrastructure spending can have a multiplier of five times. that is powerful. the ministry of finance is issue or are going to guarantee infrastructure bonds, and the boj says that as part of our monetary policy, we will extend our purchases into the infrastructure bond market. does that qualify as helicopter money or not? if they don't

>> well, when we do dividends at pacer, at our etf fund, global dividend etf, pghd, we focus on freeflow yield and dividend. rio tinto is a great story. it is our number one holding. replaces number one holding from six months ago glen corp which was everyone thought disaster. glen c.o.r.e. came into they have free cash flow, dividend yield was high. in six months we owned glen corp. it was up 60%. rio tinto as we own it is up 10%. free cash flow yield is the driver. charlie, you and i were talking in the green room about people chasing dividends. >> right. >> that's why we start with free cash flow yield. you have to pay the dividend with something. the real danger in the dividend market there is a lot of companies and people chasing dividends where the company doesn't have the free cash flow. liz: which is what -- >> kmi, kinder morgan, very controversial stock. bob kinder is kind of a legend on wall street. you know, been around for a while. don't you -- liz: had a very high dividend. >> had a huge dividend that report came out and people poo-pooed it and now looks like he was kin

board members voted 7-2 to increase the bank's annual purchase of exchange traded funds, or etfs, to about 6 trillion yen, about $58 billion. that's almost double the amount the boj is currently purchasing. bank of japan governor haruhiko kuroda said the measure was necessary. >> translator: international markets remain unstable against a background of an increased lack of transparency in overseas economies. easing will prevent market uncertainty, leading to an aggravation of corporate and household sentiment. >> policymakers also decided to increase the size of the bank's u.s. dollar lending program to $24 billion to support japanese overseas activities of japanese firms. the bank also released a outlook report saying it will stick with that 2% inflation target for fiscal 2017, but it says there remains considerable uncertainty in overseas economies. the board says it will assess the effects of the easing program at its next policy meeting. following the boj's decision, stocks and currencies showed strong volatility, but the benchmark nikkei managed to end in positive territory. our

ats.balchunas covers -- etf's.ave gone through and see that they represent two different types of investors. donald trump just spoke last. what is his strategy reading into what he is disclosed here? >> he is all over the place. it matches his style. there are a lot of investors who have acutely stocks and funds in their portfolio. he owns dozens of mutual funds investmentsprivate and hedge funds. if you look at the stocks that he holds, it looks like a creation basket that he can easily trade in. we have seen a lot of people do that. i just did this book on institutions, and i found stories of institutions taking their holdings and finding out they only had two to three etf's. more so this cleaning up of her ofyols is the trend -- portfolios is the trend we are seeing on institutional side. that is what he is. if you dig in, he owns about a dozen of these funds. they are indicative. they charge an average of 1.05%. most of them are underperforming. julie: we are looking at a five-year chart of that versus the idea

makere seeing companies multifactor smart-bader etf -- smart-beta etf's.to an issue of transparency at the end of the day. you need to know what you are investing in. studies show that among etf's, if smart-beta you look at the difference in performance, 80% of the variability between different etf's was due to this issue of style. popular, it is very and i still think people are getting more comfortable. there are more tolls out there to see what you are holding, to see what your folio is, so if you use these wisely, you definitely should be aware of what exactly is you are holding. matt: cool. shery: basically for any investment, you should know what you're investing in. [laughter] dani, thank you so much. eric, thank you so much fear to and eric's dani burger balchunas. up, our mystery stock takes a fall after some write-offs. its long roster of celebrity endorsements may have trouble getting a cap to the airport. this is bloomberg. ♪ >matt: this is "bloomberg markets." i am matt miller. shery: i am shery ahn. matt: i will give you the hint again on our

angie: buy etf or gold? >> etf. angie: of course you would say that.ch for joining us. coming up next, careless action the fbi gives -- this is bloomberg. ♪ ♪ the storm around hillary clinton's use of her private e-mail when she was secretary of state back in the headlines. the fbi declined to recommend a criminal charges although did describe her charges -- her actions have careless. jim higgins has all the details from washington dc. given that the attorney general had ari situate except whenever the recommendations were from the fbi, it would seem that clinton and her team can put this issue behind them. that may be easier said than done. that is because fbi director james comey, while saying there is not enough evidence to say she intended to violate the law, said there was evidence that suggested she and her team were extremely careless and how they handle this information. that just gives new ammunition for republicans to attack clinton for her handling. donaldng that republican has already been making a cornerstone of his campaign. tweet saying

fred: we will make money on mutual funds than etf.he reality is our business continues to grasp assets, and go where the market and the as start -- investors are going. to $14 billion in new assets in the quarter, so what we are doing in the market is appealing. your to date, $45 billion. we are good at gathering assets. scarlet: here is the other thing to keep in mind. ,ou see how revenue per trade that is the blue line. limited. the white line daily asset trading is trading higher. where does this go? is it permanent, wide cap down, or is it stabilizing somewhere? fred: in the long-term, the wide path is true of the history of the industry. it will continue to go down. what is affecting us is two things. we make more money out of options than equities, but we make less money on futures than equities. we have seen a pickup in futures of volume, particularly in the quarter, because people were trading around the brexit vote. so that has the tendency to bring commission per trade down. we also get you are option contracts per trade. --

>> we would probably make more money on mutual funds than we do etf's.business, you have to continue to gather assets and go with -- where the market and investors are going. things tend to work out over time. assetso $14 billion in in the quarter. what were doing in the market is appealing year to date, over $45 billion. we have been pretty good at gathering out and investing into the global markets. >> here's the other thing we need to keep in mind. here which blue line continues to decline as derivatives grow. daily average is the white line, and it is trending higher. joe: is this on a permanent glide path down or do you see this stabilizing at some point? long-term the glide path has been down through the history of our industry and probably will continue to go down. what's really affecting us is two things. number one is mix. we make more money on auctions than equities. we make less money on futures and equities. we have seen a pickup in futures volume, especially in the quarter because a lot of people were trading around the brexit vote. we also

etf. >> yes, gamer gamer first etf to focus on video game technology we brought out in march and anyonintendo is one of the hold in that fund. >> owning a third of the actual pokemon company. >> will. >> right so our fund focuses on publicly traded games from around the world. nintendo is one of the largest holdings. there is exposure to this pokemon fe nonnon. this is a franchise that relates to so many people from my age and younger and their parents. this is the first breakthrough we've seen in augmented reality gaming. it shows how nintendo is spreading the wing and finding ways to monetize. this is the first game people can really point to and say you know what augmented reality is, it's the pokemon go game. that's the next phase we're beginning to see where gaming. >> i had someone in the newsroom a little bit younger than me say something i remember the initial pokemon when they first came out easier ago and it takes me back to that. do you think they've also managing to scoop up everybody regardless of age in one go, as well. >> one of the great things about the franchise is it's popu

etf is one segment of these faster flows.institutional and retail. you hear a lot of recommendations of the white papers of many big asset managers. now is the time to go to yen because rates will not rise. they could be right. at what pointnder will this set up an incentive for these countries to borrow, to plug holes without something of a fundamental problem. that could be a trap later on. eric: you want to err on the side of caution. , but tore down 10% only billion dollars flowed out in a few months. clearly the money is hot, and these things are, people are watching them for the slightest thing. they will get out quickly. we will see. scarlet: we had a chart earlier about emb, which tracks emerging-market debt with emerging-market equity. there it is. eem trialing a little down. going toeing this equity markets just as much given the latest leg in the economic cycle. eric: emerging markets are having a good year all year round. keep in mind that chart, a lot of returns are from the strength of the dollar. em has the acc

y andws flows into sp etf's, those are all stocks. 2000, s&p and nasdaq, the white line shows flows into the aggregated on etf's and minimum volatility which tracks low volume two stocks. x months, year to date, those latter two were eating the market and you saw these big jumps in the white line with people trying to get safer access. this represents a huge shift. that line is the biggest jump from flows into stock etf's since august of last summer, which is when the market was rebounding. this was a big jump and the reversal shows the sentiment there. that is really interesting because when our guests yesterday was saying when we showed him a similar chart looking at one flows which were negative on equities, her money was moving from active to passive funds. so that is really interesting. love that chart. vonnie, do your best. vonnie: thank you, mark for the conviction there. now that the winner has presented, i will present my chart. this is perhaps why the bank of england did not need to do anything today for one analyst said the

angie: like physical gold, not etf gold? norman: yes, sometimes.a scare with the gold downturn a couple years ago. i do not think the interest is as high as a couple years ago. angie: if you do believe that despite all of the froth we are --ing in the market ultimately what is going to happen? how do you play defense? what do you do with gold? how do you protect your principle here? norman: most of the time you use private equity. , those debtshand are probably lower than the public market. understandably so. and wey have a discount are relying on that as well. mostly tech. boring, consumer -- angie: isn't that dangerous? right now we are seeing even s, you know,unk bond really, really popular. if it crashes, if the bottom falls out, you are left with default. norman: loans, bank borrowing, much cheaper. return.d has a good we're still holding some of it. but if it goes away, we might going to be private that market more. ,ngie: all right, norman chan we will leave it there. oreana private wealth ceo. thank you very much. still to come on "asia edg

the bank of japan expands one of its three monetary stimulus that tohe etf. upping

there will also be an update of the etf.s was the most widely expected way they would act to get to ¥6 trillion. buying risk assets of etf's. we are taking a look at the reaction now. to 102.84.dropping after the boj announcement was made. japanese equities continue to link earlier losses that we saw before. further details coming through. the boj has doubled its usd lending program. they will continue purchasing jgb's/ . they will not be doing that. that will stay at an annual pace of $80 trillion. the risks are high for reaching the target within that timeframe. to reiterate, keeping the negative interest rate on those excess reserves. upping in thean future of the -- 7-2 two keep the negative rate unchanged. not unanimous. we have gains coming in from the japanese banks as well in light of that decision. going to be very interesting to see if the market views this as a disappointment. this has been a highly anticipated decision. we were expecting quite a lot of activity in terms of what the boj would do. we are watching h

etf's and look at the subsectors.ing said all that, when you talk about pharma, the drug spades, is it a growth play for a value play or a safety play? eric: a little bit of both good and some people go their defensive or the yields or some people think it is a growth. if you look at the fundamentals in that market going forward, again, the baby boomers are retiring. they have a lot of money and they want to live forever. that alone is a pent-up demand that is what you keep coming. you look at one of the areas of pharma the has gotten a claim is the generic drugs. now there is an etf that tracks that. gnrx has done better than the pharma this year. it is down only 5%. the other ones are all u.s.. this one goes international. you are getting 30% u.s.. but it's got india, israel and south korea. it is a much more global take on generics. shery: that was my question as well. how concerned should you be when you are so internationally exposed? eric: it's good and bad. more tricky. much but in this case, it's good. scarlet

stock etf's, there is really no comparison. u.s. year this year, so investors we have spoken to are saying they are not that surprised. --y basically have a lot lost confidence in japanese policymakers to really turn this around in japan, so they have decided to get out. angie: tom redman, thank you for that live out of tokyo. checking in on some other stories, south korea is planning a range of penalties on volkswagen over its emissions scandal. a newspaper says the punishment is to include fines, recall orders, and a withdrawal of certification. korean prosecutors made the request, accusing volkswagen of fabricating reports on noise and pollution emissions up to 150,000 vehicles since 2007. sources have told bloomberg that takata may be reaching out to 20 possible buyers. buyout firms are said to have expressed interest, along with china. working on restructuring as it faces billions of dollars of cost to do recalls. be set to airbus may win multibillion-dollar deals. aircraft makers are gathering for the u.k. airshow, hoping for

the increased purchases of etf's to 6 trillion from 3.3 trillion yen. there has been a mixed reaction in stocks. bond yields are up in the yen is appreciating, which is not good news for japan. a lot of economists said they didn't do a lot today, but they wanted to say to the government that we are with the game, on board, so they did a little. they seem to have satisfied the government for a little. anna: they seem to be resolutely sticking to their target. they say they will it the target during 2017. what policy are they going to inject next? what is the outlook, do you think? >> we had some amazing statistics is morning. %he boj is targeting a 2.2 inflation rate, but prices are declining 0.5%. that is worse than when kuroda came into office in april. this got a long way to go. bojmately, people think the will come again later this year. they've already flagged in today's announcement that they are looking at how the policies have worked together. it seems like the yen has appreciated. that is the last thing the japanese want. anna: thank you for joi

if you look at the oil etf, the symbol xop, that really got crushed today. for me, i look at the crude oil market. the last time we had a supply glut and a strong dollar, a long-term strong collar was in 1980 and you have this range in the '80s, about how down to 20. that's kind of the model i'm looking at here. you get some downdraft add some point then the counts cut out. i don't think there's a lot of money being made on the downside nor the upside in crude. >> you know, range of 40 to 20 is an extraordinary rate. >> in the 80s. and we've had that kind of volatility. today's numbers, eia numbers, they showed it was a heavy duty supply or lack of demand during peak gas season for gas and product. that pushed a loft these things down. this is a choppy series. you should care about the supply of oil and production and that's something to me is leveling out. chevron, bp. >> coming up in february, citigroup said the global economy was in a death sprirl. now, that strategist is saying to buy stocks. he'll be here to explain why the sudden change of heart and la

etf flows are not always so near.nda: and when you look at that chart and see negatives for the past seven months, it did not improve, nor did it reach a breaking point where you would say it turned a corner. we do know there's a lot of action right now. one another indication if it is people going long, this thise of those things -- risk on atmosphere which gets me to enb -- inflows into etf's. look -- we have not seen this level of activity in a couple of years and we haven't seen this kind of sustained activity. it's obvious from this chart that there is a turn here. when you see that kind of sustained pickup come in that suggest and the analyst say people are looking into emerging markets as having had a rough time. now the stimulus is coming and it may be a fundamental scarlet: shift in some of these markets. scarlet:although you wonder if the dollar continues to strengthen, if the federal reserve is likely to move sooner or later? joe: as the pool of assets that pay any yield all continue to shrink, people are l

what if you want to look at something that is in verse, you can look at the velocity short-term etf. a sickly, a group of four or five that are very popular. vonnie: are we expecting to see a lot about those or will people wait to see the politics held out in britain? joe: you may not see outflows, you may see contracts changed the money may not blowout, but once things slow down, you can expect to see some outflows as people reposition and get invested in other things based on their risk profile. vonnie: thank you for bringing us up to date on that. coming up, large-cap technology shares are carrying the day at the nasdaq. apple and netflix among the big movers. we look into why netflix got an upgrade. auto sales are on track to hit a record for the first time in six years but there are signs that the numbers are slowing. anything that automakers can do to reverse the slowdown? we are live in detroit. and a check on automakers today. ♪ vonnie: let's get a check on the nasdaq. abigail doolittle has been looking at some biotech shares. >> yet another big day for biotech. 1.5% for the

we got etf extension with no small dollar lending program. vonnie: and monetary review. >> thanks, vonnie. expecting additional bond purchases, a further step in the negative territory on the benchmark interest rate. we did not get that. with benackground bernanke and all of this helicopter money, what came out was a far cry from that. vonnie: what are companies in japan doing, thinking? toyota, for example? >> many are making vehicles outside of japan, and they are reselling them into japan. market is a declining market. the demographics are running against them. the population is shrinking. david: let me ask you about data from the u.s.. up 1.2%, seems alarming. >> feels like we need comprehensive gdp. >> forecasts have been coming down in the list 24 hours, mostly because of wider trade is it. we have so much worse than that. if you are a bull, you can cancel yourself by saying that is in the rearview mirror. yourself --ancel console yourself. inventories were a big part of that. you might have to rebuild in the second half. how much is th

. >> we should note that the turkish etf, the tur, that etf, that was lower on the back of this news. so we're watching that, just sort of a proxy to the reaction on the events to the events happening in turkey. down about 5% here. >> well, look, our u.s. equity market has discounted everything. not saying of this magnitude, but stories that resemble things of this magnitude. will this be different? probably not. probably more of the same. the one, two day effect op the market, then back to where we were. to your point, colonel jacobs was on. you can't just continue to poo poo these stories. you've got to believe their citizens will want to start to get their money out of banks. that's the first time i would do if something lake that were to happen. greece is tucked into that corner, but i can't believe this is is a positive thing for global markets. >> we talked about the dollar quickly. there was already upward pressure on the dollar. it's traded between 92.5 and 100.5. you know what it closed today? at the midpoint, about 96.5. you would make the argument or you could easily make t

we're even seeing it if you look at the etf flows. huge flows into bond etfs. >> i was going to say on the equity side it's the move in bond markets that's continues to drive this global rally if you will. so does that suggest to you that investors should be cautious. >> with respect to the bond market and parking lt of the hi yield we have been encouraging, but on top of that in terms of yield capture, diversificatiodi that's the key message as well. if you are going down the capsule structure, you risk. if there's one thing brexit has taught us, there is no certainty coming through these risks. so stay diversified. go into private markets and things like that. increasing interests. and other conversations we're having, gold. you talk about etf. >> jeffrey, people writing in on facebook, you can find us there. find us on twitter. the cable targets that you have, looking at, you say we're at the midpoint. you have a midpoint with an exceptionally wide range. huge range. >> if you look at, you know, were implied volatility was heading

. >> the etf phenomenon is really interesting. somebody else about that very thing that was driving the price of an individual stock up because the etfs had to own it. number two was equity residential property, this is a bet that older americans are moving into more urban mixed-use development kinds of properties, right? >> absolutely. we're seeing statistically a lot of the baby boomer who are now empty nesters and retiring returning to the urban setting. so this is one of the biggest companies out there that handle the high density population residential population stocks. so we like it for that purpose. not just right now but for the next couple of years moving forward. >> you say that none of these stocks will see 20% returns year over year, but they will perform well in the market because of the background that you just gave us and boston properties is another one that you favor. >> yeah. i mean, let's be honest here, these aren't amazon, like the this% return we saw with the others we picked six months ago. these are slower

look at the xlk tech etf. that's broken out to a new high. so now you've got some of these momentum players not looking at apple like they used to. they're looking at other names that jon mentioned. so i think they're both more in tandem now that the reset's taken place. >> you can only love one gorilla guy in your life and you break up and realize there's other love out there. jon and matt, with love to you both, thank you. >> to you too, brian. >> love a good metaphor. >>> the republican national convention is underway. in just a few days from now donald trump is expected to receive the party's nomination for president. not everyone at the convention is happy about that. in fact, we're going to talk to a delegate who went to court so he did not have to vote for trump on that floor of the convention center you see there. he'll join us next. images, videos, social updates. we call it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with wa

etf is popular. it is easy and quick to buy gold.culty is that you don't actually have a title to the underlying physical. when you have a title to in etf is a share and the trust. there is nothing like physical gold, which you can actually hold, touch. in the event of armageddon, economic meltdown. that is why we are still seeing very strong ethical demand from this. evil taking deliveries and goodman -- people taking deliveries and finding storage facilities. betty: tell me about that gold coin behind you. coin, it weighs over one ton. we made it a few years back. it is the biggest in the world, in the guinness world of records. the second is from canadian colleagues. they have a one kilogram coin, but this is one time. this is under 40 million u.s. dollars. it is not all that big, which , gold'ses gold portability. for not a lot of weight, you can transport an awful lot of money. that is what people have found over time. having this wealth and physical gold is a good way to ensure that it is movable, that is portable. betty: i wou

he mentioned a new index a single factor etf. low vol etf. can't remember when company issued it.sked a researcher, what the hell is this thing? the first time i saw moving away from market cap weighted indices. we all know qqq, sby, tools we use as investors. the first time i turned on to the idea to create multifactor rules that govern how you invest across a wide swath of stocks. i get to intrigued. give bob credit for this that i got in the business. today the only way i invest large amounts of capital is in multifactor indices. built by ftse russell, the largest player in the world now. you can say i want stocks that are 20% less volatile, that don't use debt to increase their dividends, that don't do any sales accruals like worldcom, for example, they built and indi indice, that ticker, i involve heavily. outperformed the s&p in the last year by 1100 basis points. this is the future. this is where we're going to be going. market cap weighted, sayonara. i'm multifactor from now on. i don't want multicap. i agree with warren buffett, owning a wide swath of america but i want t

there is a chance we could see further etf and jgb buying.iries a lot, and i would not the surprised to see a pullback. economist thinking the boj has to do something. percentage west have seen since governor kuroda made that first decision three years ago. what does the fiscal stimulus mean for investors? will we see significant change in terms of where the bond market will go? >> i don't think so personally. has been a reasonable pickup in overseas funds going into the japanese bond market to take advantage of, front running further asset purchases. you have not seen much pickup in inflation expectations. i think this to me this will be on the infrastructure side of things. toon't think it will move much in terms of japanese equities or inflation expectations. we won't need to see something big from the government. on the monetary easing side of things, well, as i said before, depending on what we hear and the devil will be in the detail, it will depend on what happens to the japanese yen. my base case is we won't get anything on deposit ra

xle energy etf falling. crude oil dropped 5% closing at its lowest level since may 10.hall we be worried about some of these integrateds, for instance, that are the big holdings in the xl sneh. >> i don't think we have to worry about the integrateds, the xle, three stocks make up 40% of the weight, slum jer bay and exxon, i'm looking at the xop which is a much evenly weighted smaller cap etf and i think that's the one that you can sell on rallies. >> we'll talk and refiners have had a horrible six months, and you have to wonder when is that going to abate? everything seems to be lining up against them. at a certain point valuations will be too compelling and i don't think we're there yet. >> let's ask him right now. >> that's a good question. >> why listen to guy. >> sitting out recent rally and let's go to paul sankey, gut the refining group a couple weeks ago, institutional investor and one of the top analysts here. paul, what is going on, and at what point do they become attract sniff. >> scary here because we're in peak demand. you know, this has been a great demand

versus and potentially -- etf purchases and add to japanese bonds. leery of the idea that they are going to do further interest rate cuts. that remains a tool for kuroda and the boj but i don't think it is at the top of the list. they wait for the fiscal plan to come together and they don't do anything at this meeting, quite frankly. that is the risk. jonathan: the debate has been about monetary policy. is it more important that we get some fiscal stimulus? because the bank of japan cannot increase without the finance ministry increasing its debt issuance. michael: i think that helps. you get a positive feedback between fiscal and monetary moving together. that is a good signaling impact. the bank of japan has been looking on things like etf then they have on bond purchases. i don't think it is critical, but they are going to signal strongly that they are going to give us can -- give us any tools they have at their disposal to get inflation back. jonathan: how has the boj debate evolved after the stronger japanese yen? for the federal reserve, i wond

they are buying etf's. we are to see a lot of unconventional policy.fairly deflationary world backdrop with the china slowdown. now we've got this hit in europe as well. although, i think one of the interesting aspects of this is that the fed in america is on hold. no interest rate rises. i said early run, the chinese economy is probably not going to be impacted too much. mark: we will come to emerging markets but europe versus u.s. when it comes to valuations, attractiveness on stocks? what is your view? more interested in the u.s. if i am buying dips. bear in mind, donald trump is in the -- it's going to be a summer of risk. we have these rallies and we have corrections and i think it is going to be a sideways summer. mark: spain, some say that brexit helped mr. rajoy. in australia, you had populism causing an out certain outcome to their election. trevor: politics is extremely hard to understand at times. the polls and the brexit vote were off the mark, although within the margin of error. the sort of times you have to keep focus on the medium-term.

table,ptions on the buying risk assets, etf's, and a deeper cut into negative rates.t half of the respondents reckon the boj will accelerate ¥100buying to as much as trillion a year, pushing the ceiling of their policy capabilities. the most radical option we are looking at is a pledge to maintain the boj balance sheet and forward guidance, throwing fiscal consolidation out the window. sheet is nowce more than 80% of japan's gdp. rishaad: right, let's turn to china's biggest offshore oil and gas producer. our china correspondent is with us today, tom mckenzie could quite a reversal for cnooc. >> they posted profits of 2.2 billion u.s. dollars, and now forecasting losses of $1.2 billion. a large part is down to the oil price, averaging around $41 for the first half of this year, 30% below the first half of last .ear for cnooc they have assets in canada and china, and is the largest oil and gas producer. this is their first first half profit forecast loss since they lifted in 2000. rishaad: oil prices have fallen from record highs, does that mean there that on the canad

utility etf up 21% this year. check out the dividend etf, the sdy, it's up 13%. can you still buy these? or is it too late? joining us is president of far, miller and washington and cnbc chief investment strategist at key private bank. gentlemen, good to have you here. i get why you wouldn't want to buy a utility this year. i get why you wouldn't want to buy a dividend stock this year, michael, because where else are you going to generate income. here's the thing, what do i do right now? should i still go into those areas, or is it too late? >> not only do i think it's probab too late, michelle, i think if you've owned those you probablyught to take a look at rebalancing and selling a little bit. look, the rule is to sell high and buy low. the thing's up 21% this year. something trading on yield means that it's going to get a lot more money just based on the yield. if the treasury yield and other yields at some point start to move higher, relatively these become less attractive and prices start to fall. in the meantime i do like some of the other dividend stocks

so he came up with the etf of all of the novel's 140 pages to finish in one night. they are paperbacks there only $4 dash cents in to get people and said to have them back in their lives again. >> so far in your career we haven't talked about the finance side. >> has an editor you have to understand the business if you are recommending books that is how you make money with every piece of financial information they could get. in by those said employee you. and to be continued to be employed as an editor. portfolio managing project than i used to harmony books and little brown and then i became ceo of the publishing division. and under those advances and then with the successful publishing organization. that is a good step of the publishing divisions. of publicly traded company controlled by the parent company, a television and radio. >> could you report to? >> the ceo. that is a brilliant strategist to lenders to lung daschle full range if his publishing what have you learned? that publishing is local i've tried ted koppel times but it doesn't work. they put their he

we see turkish etf getting crushed in after-hours trading. maas to talk about what going on. obviously, a developing story. we're not sure of all the details yet. but the financial markets started reacting right before the closing bell of the new york stock exchange and then the movement became larger and larger. dan: this is a surprise, no question, as if there's not enough international to mulch right now last few weeks. tumult right now, over the last few weeks. we have not received any word on the whereabouts of the head of turkey's central bank and finance ministry. it is true, as the military if it isnd that's -- true, as the military claims, and that is up for debate, they may have taken control of the country, but can they leave the country? that's the real challenge. tape 24ll back the hours before all this started. does kind of an annual report card on each of its members. the last article on turkey was in april. dependent ons domestic consumption. they have a large need to finance that through external things, meaning foreign inves

basically since the february love, we have had more money into etf's.se are betting against upside and then he had money going into levered long etf's. it has happened over the last six years. not only is it not a love market, it is apathy. what i get universally is this apathetic view. fund managers are in it will quandary. if you did not get on board when the market was weak, it is tough to chase it up from the february lows. over time, i think that is exactly what you should do. we are looking at another 10%-50% upside. vonnie: monzon yields are at record lows. -- bonds and yields are record lows. how long does that continue? tony: i think it is over. i was looking this morning on the 10 day rate of change. only in three other times at history have you dropped over 10 days like we recently have. since 2008, you're going to get a response rally. we are not in the financial crisis were yields are going to come down so hard. the search for yield globally has impacted treasuries. rather than look at what rates are going to do, what is the impact on stock