j.p. morgan asset management stayed bullish high-yield. the message is don't get greedy.ere something you guys are still thinking about as you look at this situation? is this just a buying opportunity for you? iain: definitely. when we look at yields a month or so ago, 5.4%. it was probably a little too low. we have seen a decent backup. rounding out around the 6% level. spreads are about 40 to 50 basis points wider. please the default rates remaining low. rates -- wedefault see default rates staying low. jonathan: i want to use sprint as an example. the deal breaks down for a merger, the debt breaks down. i have pulled it up on my bloomberg. we traded north of 110 and then with below par. a company north of $30 billion worth of debt in a competitive sector, whether you compensate for the yield north of 6.5%? iain: i think when you look at companies like that we have seen profits improving. -- profits improving. the overall state of the economy should be good for this sort of company. the things that happens to these big, large issues with the big components of indexes, w

j.p. morgan asset management, for a while, has stayed bullish high-yield.essage from bob michael is don't get greedy. is that something you guys are still thinking about as you look at this situation? it is time to fall back, go up in quality. is this just a buying opportunity for you? iain: definitely. when we look at yields a month or so ago, 5.4%. it was probably a little too low. but we have seen a decent backup. our yield is now rounding out around the 6% level. spreads are about 40 to 50 basis points wider. we see this as a great opportunity. rates remaining very low, corporate health is strong, and the u.s. economy looks great for us. talk aboutet's individual credit. you do not have to speak to the individual name, but i want to use sprint as an example. the deal breaks down for a merger, the debt breaks down. -- debt breaks down as well. andraded north of 1.10 dropped below par, but i want to ask you with a company north of $30 billion worth of debt in a -- and an uncertain future in a competitive sector, whether you compensate for the yield north

j.p. morgan asset management for a while stayed bullish high-yield.essage from bob michael is don't get greedy. is that something you guys are still thinking about as you look at this situation? is this just a buying opportunity for you? iain: definitely. when we look at yields, when we were down a month or so ago, 5.4%. it was probably a little too low. we have seen a decent backup. we are now yielding around the 6% level. spreads are about 40 to 50 basis points wider. we see this as a great opportunity. we see the full rates remaining below. we see corporate health very strong and the u.s. economy looks great to us. the time to buy high yields. jonathan: i want to use sprint as an example. the deal breaks down for a merger, the debt breaks down. i have brought it up on my bloomberg very quickly. we traded north of 110 and then we dropped below par. the question i want to ask you is, a company north of $30 billion worth of debt in a competitive sector, whether you are compensated with a yield north of 6.5%? iain: i think when you look at companies li

j.p. morgan asset management, thanks for joining us. great to have you.reveal of its new electric long-haul truck. we will look at how this could disrupt the auto industry and the oil sector. if you can't watch it on television, you can tune into where calling tom keene on the radio. "surveillance" can be heard in new york, boston, all across the country. this is bloomberg. ♪ emma: this is "bloomberg daybreak." coming up on "bloomberg markets," the harvard kennedy school dean and former cbo director. this is bloomberg. now to your bloomberg business flash. shares plunged after the struggling british production company warned it is in danger of reaching its debt agreement. it is negotiating lenders to restructure its finances. movies boosted india's sovereign rating for the first time since 2004. they say reforms being pushed thrown by narendra modi's government will help stabilize debt. it came as a surprise to some investors. questions still remain about whether a leonardo da vinci painting sold for a record $450 million is authentic. says it's in new yo

j.p. morgan asset management doesn't rollout the prospect of 125pound tumbling as low as should brexit-relatedeadlines prove to be negative for it the past. giving it a boost, stronger than expected pmi data. but the focus is very much on brexit rather than the bank of england. shery: right, mark. here in the u.s., the focus is on jobs. lucite hurricane harvey and irma were not strong enough to derail the u.s. labor market. the economy added 261,000 jobs last month. as unemployment fell to 4.1%. here to talk about the strength of the labor market and what is ahead for the economy is diane swonk. she is with us from chicago. diane, thank you for joining us. we still looking through the aftermath of the storm? how clear is the picture right now? diane: it is a little fuzzy. we did not see as big of a bounce back many expected, but i was expecting to see lowered numbers. the rebound in leisure and hospitality did not fully come back, and i think that is because we had another disaster, the fires in california, which theed many evacuations closing of the employment report. we are still getting a l

j.p. morgan asset management. beginning the session in hong kong.e are moving to the upside to above the psychologically important 30,000, looking like we are going to breach that right at the start. up .9%. ♪ haidi: singapore and indonesia are working together on common standards for tax reporting. speaking to bloomberg, the senior manager for finance said it is all about improving corporate transparency. >> our regulations have always been clear. if you put money into singapore, if you invest into business activity, you should make sure it is clean, that it abides by our government regime, and if there is anything wrong with that money, it is something you should be very careful about. as far as we are concerned, where do people put their money, why do they put their money in a particular place? usually because they want to have the best returns on the money, because they feel the place is good for economic activities. those are the kinds of moneys we want to attract. if there is out flow for wrong reasons, that's up to those companies. as far as

j.p. morgan asset management danielle di martino booth is president of money strong.cott mineard, fan of the dodgers, good to have you all here, folks. good luck to you, scott, tonight. >> thank you, michelle i want to talk about the fed decision, but can we talk about jerome powell and the expectation that he'll be named the next head of the federal reserve? he does not have a ph.d in economics. danielle, is that refreshing >> is now when i can say amen? >> yeah. >> amen. >> you like that that's a great idea. >> i absolutely like it. he has real-world experience and he understands the financial markets and he's circumspect i wouldn't mind a fed leader who had less to say. i really wouldn't. just because he's quiet doesn't mean he's unqualified. he's worked with past administrations and shadow banking, you name it i like this guy. >> did i see you nodding your head what do you think? >> it's a breath of fresh air. he's not an academic, but he is a known quantity and it's something that investors can build appropriate expectations around and perhaps extra real-world ex

j.p. morgan asset management and john bilton.of london, the unreliable boyfriends, now slightly more reliable but not what you wanted. john: you have to remember what they did, remove the emergency cut. there was a decisive view around the table to take the emergency measure off the table. the way the market is interpreting it and the way it is trading in the currency market is that this is likely to be a one and done. what is going to happen now is the focus of the market will return to the budget on the 22nd of november and what philip hammond may or may not be able to get through, and secondly and more importantly, it happens with the brexit negotiations in december. will the european union allowed the negotiation's to move forward to the trade phase? it is not clear that is a home run for the u.k. jonathan: away from being just u.k. specific thomas something happened in the middle of this year where president draghi went out and said maybe it is time to bring in the program and reduce .e, my words, not his governor carney did

j.p. morgan asset management. bob: it lives off of replacing private equity money with that funding.eductibility of the interest is the leverage that allows the equity piece to grow. alix: in theory, we get less supply. does that mean permanently lower yields for these jump on companies? -- for these junk bond companies? bob: i want to be compensated for the credit risk. it is going to make it more painful for companies to come to the debt markets. jonathon: you want to lend to someone. i wonder about that repatriation story. it will also develop a supply issue. they are being forced to bring the money home. they are going to be taxed on it anyway, regardless of what they decide to do. bob: it is a two-edged sword. has been overseas, company has issued a lot of debt to buy back shares and raise dividends. but the money overseas has been buying each other's corporate debt. if the money comes back to the out. it will be dividended shares will be bought back. and there will not be a pool of money to buy the issuance. jonathon: let us say this fund is domiciled in bermuda or dublin. it i

j.p. morgan asset management. that is not small.hether it is emerging markets are developed markets? >> the overarching theme for us has been on the synchronized growth with the tide lifting all boats. what has been good for the u.s. economy has been good for non-us markets as well. it is a shift that began last year, and we accelerated in january and february to increase our exposure in other markets, being exposed in japan and others. alix: the high-yield market rollover in the u.s., what do you make of that? what is your read through when you are looking at emerging markets? >> when we think about high-yield it is from the perspective of a multi-asset class as to what the choices are. given we are positioned for progrowth and we are assigning low probability to recession risk over the next 18 months, and we do not see a catalyst that would drive that, our perspective has been we want to be pro-risk. and given we are later in the cycle, we want to take it to equity, rather than credit. if i was a bond manager, our choice would be

j.p. morgan asset management when we talked -- when our people talked to you, you were hoping it was goingu happy? >> it duds i think it's time that we have somebody in with the broad background who is a market's practitioner as we back out the experimental policy tools from the market. >> i want it to be done cautiously i want somebody in there who is not going to be purely driven by econometric models i want someone in there who understands free market practices. i think he's a great choice. >> you think that even though inflationary pressure aren't evidence now, that's the risk and central bankers could be too aukish >> i think that is the risk. when you look at inflation it's true it's lagging, it's not add the desired target everyone would like to see it higher but we're seeing a lot of economic growth. corporate earnings are coming out great, we're looking at data that's coming through that's going back to 16, 20, 40-year highs. the ifo data that came out of europe is at a 40-year high. there are lots of pieces of data that tell us that the economy is humming along. i think a lot of

managing the largest share of asset for wealthy saudi's, some are among those caught up in the anticorruption investigation. according to people familiar with the matter, j.p. morgan and credit suisse manage billions of asset for rich saudi's and not clear how the approach will affect the banks. china's recent announcement to lift curbs on foreign investment in the financial sector has been met with muted response from -- muted response and the aig -- deals, halfwayhe done before i got there and -- the insurance financial industries saw a listening by requirements in china. which will be very good. it takes place over a time. i am pleased about that. julie: he said president trump's asia trip repaired several relationships and affected change for several chinese companies. that is a bloomberg business flash. an update on jeff sessions who is giving testimony before the house judiciary committee and says he is no reason to doubt roy moore's -- roy moore's accusers and facing questions about his knowledge of the trunk campaign knowledge with russia -- donald trump campaigns dealings with russia. ♪ >> let me say this. ♪ him ♪ mark: let's look at oil. iea sayingith th

asset managers. we speak to j.p. morgan's asia ceo. ♪ anna: a warm welcome to "bloomberg daybreak: europe."us: some cracking guests for you. we have j.p. morgan's asia ceo. opening up in china. anna: we will bring you an interview with the allianz ceo. we will talk about where you want to put your money. pimco be heart of the story. some breaking news. this is the hard luxury watchmaker, diamond maker. period, 974he million euros. that is what we have. sales came in at 5.61. couple -- look at a couple of different stories. they are trying to grab a hold of their grand again. operating margin, 20.8 billion. -- 20.8%. when it comes to changes, they went through some serious change last year. the abolition of the chief executive officer position plaster, trying to rejuvenate the board. you had the head of watches, he left. he went to breitling. coo andjerome as emmanuel to be the head of watch this division. this is trying to have a hold of this business, make sure it is fit for purpose going forward. let's talk about the steel sector. arcelormittal have numbers ahead billionates at $1.92 vers

assets for wealthy saudi. some are caught up in an anticorruption investigation. according to people familiar, j.p. morganmanage credits for saturday. it is not clear how it will affect them. approved,pill is amplified, embedded with a sensor that keeps track of whether patients take their medicine. the sensor is activated by stomach fluids, signaling a patch on the body that transmits to a smartphone app. and that is your business flash update. that is an incredible story. of all the stores we have tracked, technology wes, -- sherry: we have to give it to them. julie: that is more mind exploding, even then the a.r. stuff on the apple. sherry: coming up, the house and senate are running out of calendar days. they have a deadline to pass the tax reform. hank bloomberg says the senate version could come out on top. greenberg says the senate version could come out on top. this is bloomberg. ♪ ♪ sherry: this is bloomberg markets. julie: i am julie hyman. sherry: i am shery ahn. the house is inching closer to a vote on tax reform while they grapple with details of the bill. former aig ceo hank greenberg spoke

j.p. morgan. a very old company. with the ceo that we would not view as glamorous. their financial performance is incredible. i think they had $2.6 trillion in assets. their stock return over the last year has been incredibly strong and he is at an amazing job kind of grant guided them through the business cycle. let me ask you about last year's number one. last year mark zuckerberg. he has dropped to 13 this year. why. and the performance is still really strong. they are going through some struggles not really on the business side they are still turning out huge profits but they're trying to figure out how they managed their platform. we head over 2 billion people on facebook had a challenge to make sure that they are delivering on their responsibility. i think that came into it a little bit. a lot of it is the metrics. we just did not see them at the very top this year. i have your hands in terms of regulation. they have more power today they know everything about us. you wonder if they will see a heavy regulated player. they told us like fix it or fix it for us. a lot of the companies on your list are tech and finance companies. we back to the f

asset management, sticking with us. david merrick, thank you very much. coming up, jamie dimon speaking on pretty much everything. comments from the ceo of the jpmorgan -- of j.p. morganlub. this is bloomberg. ♪ jonathan: j.p. morgan chase ceo jamie dimon says he is betting president will not be elected to a second term. speaking at the chicago economic club, he said he would support a surcharge on his income, that taxes need to be more competitive. jamie: at this point, you are talking one million or 2 million additional small businesses. products system has been driving companies overseas for 10 years. 5000 u.s. headquartered companies are now owned by foreign companies because of the tax system. 5000. >> you are clearly in favor of tax cuts. jamie: it is not a tax cut. if you are a democrat or republican, we need a competitive tax system in a competitive world. notion that we are going to have a uncompetitive tax system and do well for our country is crazy. jonathan: jamie dimon doing and around the world tour on pretty much everything. james athey of aberdeen asset management. on the competitiveness of corporate america, is he right and does this tax overhaul bill

j.p. morgan asset management. he is joining us live from singapore.avid, more optimism when it comes to tax reform despite what joe said that some people are still on the fence on certain aspects. i have a chart that kind of shows what the market is that market is factoring in at the moment. that shows what the market is factoring in at the moment. if you look at the russell 2000 , it is slightly rising, but not nearly as high as what we saw during the election. what is the price? i think we will see tax reform. there is the issue of winners and losers with tax reform and companies that have overseas exposure. will it affect their relative behavior in different parts of the market? yes, tax reform is going to happen, and the reason is they set a limit. i am going toys issue you a $100 trillion credit you with nothing on it, can find a way to diffie that up to please most people? yes. nobody is going to throw the cake out. the senate will pass a tax reform bill. i think before the end of the year, the president will sign a big tax cut. it's nicesounds