invesco's next big bet.bympany has agreed oppenheimer funds for 5.7 in dollars. -- $5.7 billion. this is huge confidence in active management. >> it seems that way. invesco is the fourth largest provider of etf's. oppenheimer funds is a decades old firm that is known for actively managed funds. the interesting note is those actively managed funds tend to charge higher fees. we are seeing some firms like invesco realize they need to have scale. also to make some money they need some alternative actively managed funds. brings invesco to a $1.2 trillion asset manager. >> it feels like we have seen a series of deals and the asset management business yet there is a bit of a mixed track record when it comes to the success of those deals. combine onseen firms the u.k. and u.s. fronts in order to get scale and distribute their products across the globe. there are mixed results they are in terms of how much investors have like that. invesco shares popped on the news. investors who were lukewarm on the prospect for a

jonathan: sean newman from invesco sticking with me, along with bob miller of blackrock and victoria fernandez from crossmark. coming up on the program, the auction block. comcast pulling off one of the biggest corporate debt sales ever in the u.s. this is "bloomberg real yield." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." we want to head to the auction block, where comcast has the second biggest deal of 2018 and the fourth largest u.s. debt sale on record. the company selling $27 billion of unsecured bonds in 12 parts in order to finance the $39 billion acquisition of sky. the longest portion of the offering, a 40-year security yielding 1.75 percentage points above treasuries. till rate announcing to raise $450 million through a private placement of convertible bonds. the notes for the world's largest publicly traded marijuana company will be due in 2023. and over in europe, a little nerve showing up in the market. this week, two-year bond sells reported and russia cancelled a planned auction of 10 billion rubles of short-term debt due to lack of acceptable bids.

from invesco. that is it for us from new york. we will see you next friday at 1:00 p.m. time, 6:00 p.m. in london. this was "bloomberg real yield." this is bloomberg tv. ♪ ♪ alix: milk, corn, and steel, oh my. trade crisis averted. a big sigh of relief from commodities. "it is all your fault." vladimir putin blames president trump for high oil prices. i sit down with dan stark, and -- jack stark, and discuss how the company is planning to make money. shell goes all in in canada. they have a monster lng project in canada. without securing long-term contracts. the implications for the market. ♪ alix: i am alix steel. welcome t

obviously invesco has grown so huge in the passive space.t way they are adding more of a complementary thing rather than piling it on one particular area. vonnie: why is this? why is the strategy they are taking on the passive side -- now they have a bunch of active strategies to work with? katherine: active management has been in a secular decline. why are you betting on it? they pointed us to the fact that they think we are piling too much into passive, frankly. we are investing way more in that when we should have more diversified sets of income. i think it will be an interesting time to be saying that. markets are a little more volatile and people are questioning when the end of the cycle is. for invesco, they want to be ready to have all options for investors when that time comes. vonnie: katherine chiglinsky, nceomberg news' finac reporter. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. i'm guy in london, johnson. this is bloomberg markets. time for the meeting moments, and we are focused on the latest volatility

invesco when you talk to the ceo was pretty adamant that this is a partnership. that thecahn argues shares are undervalued. give us the three-story. coming out against his plan to go public. he is saying that the price that dell is offering to buy these stake,which he holds a the prices undervaluing the true value. he is saying as well that the threat of doing an ipo as well inpart of the scaremongering order to get people to vote for the transaction. >> bill gates said that personal community -- personal computing would not have happened without paul allen. he died from complications of non-hodgkin's lymphoma. he retired in 1993 for health reasons and he turned his microsoft stake into a fortune. >> he has a diverse of interest and investment. he invested in cable tv and other technological companies. his huge success has been real estate in the seattle area. he created the second fortune creating billions of dollars buying up real estate, which he wound up stashing into a headquarters for amazon. he is involved in environmentalism and protecting the oceans, rej

it will become a shareholder in invesco, and invesco were adamant that this is a partnership and they together. they want them to be a partner with this. agitatingon is against the plan to return to the public markets, arguing the transaction undervalues shares that track at stake in the vmware. >> what he is doing is coming out against this plan to go public, saying the price that dell is offering to buy these shares, the price is undervaluing the true value of these shares. as well thataying the threat of doing an ipo as of the part scaremongering in order to get people to vote for the transaction. >> bill gates says that personal computing would not have existed without paul allen. of billionaire cofounder microsoft i'd yesterday from complications of non-hodgkin's lymphoma. he was 65. he stepped down from microsoft for health reasons. in the past three decades, he turned his microsoft stake into a fortune vita $26 billion. lost the hands of dollars investing in cable tv and other companies. his most recent huge success has been real estate in seattle. he created almost a second fo

bob miller blackrock, victoria fernandez from crossmark global investments and shauna newman from invescong up, a market check. the yields are up seven basis points on the two-year, and there is your move on 10 and 30. a wow move. still ahead, the final spread. a fresh round of data on u.s. inflation and more comments from the fed's john williams. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." time for the final spread. coming up in the next week, we have the first round of the brazilian presidential election and the first round of u.s. nash plus a fresh round of u.s. inflation data. bank earnings and the fed's john williams will be speaking. still with me is bob miller, victoria fernandez and sean newman. fast-forward to the brazilian election. here is your chance to talk em. i know you have been itching to do it. tell me what we should be looking for. sean: jon, it's a classic election. we have never seen an election like this in brazil. i know it is somewhat of a clichÉ statement, but what we , the supporters of both candidates. electi

. ♪ taylor: invesco has agreed to by oppenheimer funds.ively managed products at one of the largest managers of exchange traded funds. invesco will pay $5.7 billion in stock, most of the preferred shares. ebay is accusing amazon of infiltrating gets enough system to poach high-value sellers. in a lawsuit filed in california, ebay claims the tactics are part of a larger pattern of aggressive, unscrupulous conduct. amazon is not commenting but the company previously said it was investigating ebay's allegations. europe's biggest technology company is raising its forecast for the year. sap sees momentum for us cloud business taking off. new client bookings rose 37% in the third quarter. s.a.p.'s profits missed estimates. that is your bloomberg business flash. alix: we turn now to wall street beat. first, bankers walking the saudi tight rope. they publicly rail on the conference, but behind closed doors bankers are working away. uber hails debt investors. they bypassed the broader bond market, selling $2 billion worth of debt. it faces an onsla

stock holder, invesco managed $1.2 trillion in assets.rong earnings from unilever giving pricing power. cheryl: tracee carrasco with that story and other, good morning, tracee. >> both reported stronger quarter sales even having to raise prices. it was charging more for beauty and chemical products, nestle raised more on bottled water. procter & gamble raised prices on consumer goods, we will see how that plays out when p&g announces today. it is a little less, tesla taking orders for a 45,000-dollar mid-range battery model 3 that goes 260 miles between charges, that's compared to 54,000-dollar starting price for sedans with the long-range batteries, however, we've yet to see 35,000-dollar model 3 elon musk first unveiled and promised back in march 2016. lauren: long time ago, anybody feeling lucky, nearly a billion dollars are up for grabs? tracee: if you are not here monday, we know why. mega million jackpot has grown in largest jackpot $970 million that drawing is tonight, tomorrow night's powerball jackpot at 430 million combined tota

. ♪ >> invesco is agreeing to buy oppenheimer funds, as $246 billion in assets.mpanies that what happens here? >> they have struggled a bit. when you are trying to build scale, there can be some hiccups in terms of adding companies together. invesco thinks this is going to be different. part of that is the structure of the deal. when we of the deal, talked the ceo, they were pretty adamant that this is a partnership. and they work together still want to be a partner. ♪ >> activist investor carl ica hn argues that the proposed transaction undervalues shares of track and its stake in vmware. give us a brief. >> what he is doing is coming out against this plan to go public. he is saying that the price that was offering to buy these shares, in which he holds an 8.3% stake, the price is undervaluing the true value. and also i think he is saying that the threat of doing an ipo is part of the scaremongering, in order to get people to vote. ♪ delegates says personal computing would not have existed without paul allen. the billionaire cofounder of microsoft died yesterday

arnab das, global market strategist at invesco asset management, joins me now. good morning.g to that closely. that is a good illustration of a boss with a lot on his mind, brexit, the trade war between the us and china, or the ta riffs war between the us and china, or the tariffs on cars going to the us, and then the future, electrification, all the other issues they have to consider. yes, it is a complicated time certainly for the car industry as we have heard and in general as well, so what i would say is starting with the global trade tensions, we have had some progress, right, the us, mexico and canada have agreed, it has to be ratified in congress, but at least it has been progress, and i think this is telling. president trump himself might bea telling. president trump himself might be a trueblue protectionist, but the us probably is not and there's a lot of different crosscu rre nts. there's a lot of different crosscurrents. so oui’ there's a lot of different crosscurrents. so our take on this is that these tensions will continue but they will probably not lead to a fu

stay with us global market strategist from invesco. >>> now several e.u. officials said they are optimistic about striking a brexit deal with the u.k. jean claude juncker said they hope they can finalize it by november they thought the two sides ev ever -- are likely to reach a deal by december >>> meanwhile, the british chamber of commerce said brexit uncertainty is, quote, starting to bite. the r thethere's weaker sentimet trying to recruit workers is at the lowest level in 25 years >>> and in today's segment of check it out or check this out, thousands of dogs and their owners, willem, took to the streets of london to demand a second brexit vote the event has become known as a wooferundum. it's meant to hound the government and insist that brittain's decision to leave the e.u. is, quote, barking mad. a senior former advisor tony blaire was among the attendees who hoped to put a leash on the government's position. >>> the painting self-destructed just moments after being sold for over a million pounds. it was a remote control shredder involved in this pa

. >> some of the other names on the list include at&t, gm, invesco andouthern company. >> um-hum. >> gm, i'm interested in that beca pe gm has beenforming better than ford certainly. why do you like that auto space so much? >> we, again, they are cyclicale companies. s. kpee doing well. 5% dividend yield upon a high quality company like general mortgagors gm has a stake in lyft, the competitor to uber >> that's the tech side of. >> tech side of it. i do think that's an option that's not being fully priced in for the stock. and i think you know with the yield at the current valuation i think gm is a good stock. >> what about investors who may be retired or not comrtable putting money in stocks right now in a big wat what p of the yield curve would you like, the bontd market. >> if you go into fixed income, i don't think you have to streh too far to pick up yield. you don't have to go out, 10, 15 yearso pick income. you can go out three to five years. bonds aed r or better and you get a 3% to 4% return taking on much risk. >> on that note johnnk tou so much. we appreciate it. >>> and c

been weighing on different banks and financial companies as we see here with bank of america and invesco. it will be interesting to see how this day plays out. vonnie: absolutely. a bunch of battle in italy, the city will not exceed the deficit target. the government sent a letter to the european commission calling for constructive talks with brussels. , thisg us from rome denverc has managed to to conversation. this is not exactly what europe is taking exception to by saying we won't go beyond that. that doesn't help europe. kevin: the italians really have to put down in writing something the european commission will accept. the latest as they will adjust and shift as the year goes on. the year 2019. the commission wants to see a plan that to them make sense. vonnie: has anyone proposed a plan that would keep voters on the side of the currently to ship and appease europe? -- current leadership and appease europe? kevin: a new poll says six out of 10 italians support the budget, even though it does break rules. if the government can't get this through, there will be a lot of dissatisfact

the firm puts invesco in that camp because of its recent acquisition of oppenheimer funds.vacations worldwide and the expected synergies it could get with fellow timeshare provider ilg. to round out jeffries' suggestions, santander consumer and amjet. but broadly speaking stocks underperformance versus growth is one that's poised to flip jeffries says thanks to technicals, a rising interest rate environment and the potential for a better-than-expected earnings season. >> they've been waiting for that transition for a long time thank you, leslie. leslie picker. >>> amazon is on pace for what would be its worst day since january of 2016 and that drop is putting a nasdaq on pace for its worst month since the financial crisis by the way, it would be the fourth straight week of losses but should investors be selling into this selloff? joining us at post 9, "new york times" columnist jim stewart it's been a while since we've just talked markets. >> and this is a great time to do it because my phone has been ringing off the hook with people saying should i sell i mean, no one has

at invesco, we don't offer those lenched or inverse products.l focus is really just sentiment a lot of longer term investors focus on kind of portfolio rebalancing. i'm not aware of any kind of issues related to products that are not really exchange traded funds. but more as you know an exchange traded note fund 3w i'm not aware of difficulties. >> thank you very much for joining us today i appreciate it. >> dan draper. >> yeah. >> dan draper. you think i'm going to let that slide? >> we were just talking about it over here. >> we played the music from "mad men" coming in >> it's more -- i don't mind the frivality. it's one letter difference >> yeah. >> also, he said good-bye. st it's not a matter of involving him. >> i want you to embrace it. you can be the other mike santoli for the rest of the day, but when you're here -- >> we'll see >>> facebook shares trading height r hi higher right now joining us on how this fits into the performance of faang this quarter is kim forest. she is partner at fort pitt capital group. the stock is trading high

the widest spread with the invesco pure value etf which is the very discipline deep value strategy right etf is still ahead. and actually by a substantial degree by four percentage points. is this a long-term enduring shift of leadership? it's not clear it seems as if value stocks got beaten down so far that they were the first ones to get picked up. i think people are looking at today's rally. the nasdaq 100 leadership saying uh-uh, we're going to go back to that muscle memory again so that is to be determined. >> netflix up 9% when you say value stocks, what are the top three stocks we should watch to see if this continues? >> gm is helping this. so if you looked within this, it's got almost no tech. it's got a ton of industrials, a lot of old retail so if you look at chain retailers and 25% is financials so you're looking at regional banks and insurance companies, very cheap financials on a price-to-book basis. >> amazing that macro is really getting set aside today. china pmi no good, shanghai was up, chicago pmi no good. >> i think we used up macro anxiety over the course of the mon

invesco down. franklin resources what's going on? is not necessarily benefiting this industry flows weak fees have been compressed. that's obviously what's going on also global markets have been weak i think the market is viewing this group as a disrupted industry it's not necessarily one that has leverage to the overall market picture they look cheap now. all of these stocks look very cheap. kind of multidecade lows for some of them in terms of valuations, relative to asset levels and earnings. a question whether it's a value opportunity or not right now definitely interesting final point, an industry where two of the biggest innovators and market share players, vanguard and fidelity are in private hands. almost as if you're looking at retail and amazon and target are not available to be invested in and you have what's leftover not necessarily the greatest picture. >> what's leftover, not a winning bet. mike, thanks interesting by virgins. >>> and coming up, amazon hiking minimum wage ceo jeff bezos advocating federal changes. senat

it is called the invesco it is a 40 percentage point spread this was one of the biggest shifts in stylehe rest open up why might th might not be happening right now again is where we are in the cycle. if you look at what is inside this value index it is 25% financials which have not been able to get out of their own way. you own basically all of the auto stocks, all of the old media stocks, aulg of tll of thy very old technology stocks essentially all of those things are kind of disrupted or they are handicapping potentially the end of this cycle before very long >> and the other thing is how broad and strong the rally has been in the median term. even if the laggard portion is up 40% it sort of shows you that >> it all came kind of at once here you can see from the low here in 2016 and then you have brexit right here or in there somewhere. that's where it all came the markets have done great. they owe us nothing. i think at some point it will make sense to have the very cheapest stocks work or at least that usually when you're at this phase it's not the time when basically you have one

i think a very big deal in the asset management business invesco. an awful year for the asset managers. it is a very big company. i would point out that they have a well known etf brand flaname. look as how the ast managers have done. even your big leaders like black rock which also owns the shares have been down dramatically. investors down more than 40%. federated, franklin, legg mason and blackrock. if the problem is active management and etf providers have seen their shares decline. overall problem is just fee compression. active management has been under assault for many years. passive investment is growing. it is roughly 50% of assets under management. this is creating dramatically lower fee revenue that is not being made up. there are alternatives where you buy stock based on rules. it's quasi active management. the fee structure is much, much lower. these companies are strcramblin to find ways to keep up the fees that are the life blood of the companies. it's not just assets under management but how much you can bring in as a percentage of t

invesco buying oppenheimer funds. it is wrapped around the active-passive debate.ection over the etf? kate: i would not be sitting in my seat if i did not think that was true. this is one of the most interesting moments for people choosing securities. we were talking about margins. this is a perfect place analyzing margins and how companies are able to control costs and how stock pickers can differentiate themselves. blackrock is in a great place of having a huge suite of products. we can share information. it has been the best information hub of any firm. tom: too much optimism. go away. kate moore of blackrock with us. u.s.s stein, the securities and exchange n,mmission are -- kara steio the u.s. securities and exchange commission are with us. this is "bloomberg." ♪ [italian] francine: that is the prime minister of italy. you can hear him speaking in italian at the foreign press association, saying they need to be prepared. he talked about brexit. more important is the italian budget. italy has been softening its stance, saying the target is the upper limit. it m

ford is at 7%, at&t is almost at 7% invesco, other investment companies are up in the 6% gm is in 5%. know ford has a lot of cash. phil lebeau has been talking about that but these are impressive numbers these are what the utilities were bear that in mind. finally you want to see what a crummy market does to the ipo business big drop in prices we're waiting for yeti to open, here it is outdoor equipment. 20 million shares at 19 to 21. they're ending up with $16 million. they're raising 30 less money. that's a market condition situation. we'll see how it opens we did better at nasdaq. we are at the highs for the day up 225 points on the dow back to you. >> bob, thanks very much align technologies, one of the big winners of this era. down 27% on weak guidance. >> i did hear there was going to be competition i just didn't think the competition would be that bad and they have these dental organizations that can finally get pricing so there is -- also let's remember that group is weak. merck had a good quarter anything bought because we were supposed to go into a recession is being sold to

also keep an eye on the low volatility exchange traded funds like the invesco s&p fund, that has fluctuationstime the top holdings are stay stopl stocks it he dependent on risk sentiment for stocks like in telecom and technology so growth versus value playing out big in the etf market. back to you. >> dom, thank you very much. when we come back, larry summers is with us don't miss billionaire bond trader jeff gundlach who will talk about these critical rates he's been watching for some time dow is down 40 points, s&p down 7. we'll be right back. at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! >>> story of the day, the market larry