wasn't larry fink suggesting that there was zero fiscal policy combined with monetary policy? s talking about larry summers. >> no i'm talking about larry fink. >> that's what he was suggesting. >> when he says fiscal, he mines cainsian stimulus. that's why i said about cutting back on regulations and all these other things. because just -- you know, on the front end being virtuous and expanding the safety net and free college and all these giveaway, it sounds great. but it ends up with the fed as the only game in town. >> the fed's been the only game in town because nothing else has happened. >> but it's just a vicious circle and it keeps getting worse and worse and worse. that's kevin' point. his point is you don't change the narrative and say suddenly we're in secular stagnation. you say what i've been doing has not been working. maybe try something else. >> what i've been doing by myself hasn't been working. >> it's congress' fault. >> they have a theory and the theory is -- makes good sense in the fed's models. the theory is we can just find a way to get people to spend mo

but still a guy like larry fink saying that -- >> that's new for him. begging the fed to raise. >> what stocks look like. >> sorry, jim. what did you have to say? >> the market could be higher by year end and the pe mobile lower. >> it could be higher, lower, or the same. thanks for that insight. appreciate it. he also told me it was the summer and technical analysis was different than fundamental analysis. >> gentlemen, thank you. >> i could read this right now or -- >> hurry. >> coming up, kay bailey hutchison an donald trump's pick for vice president. we'll have more on the attack in nice in just a bit. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. >>> among the stories front and center this morning, a senate panel is asking tesla for

what larry fink says today not in so many words not so fast. >> fundamentally he has a point. if you look at earnings in the s&p 500 for the last two years they've been flat. you're predicting there's going to be growth in 2017. i would have said you need to wait and see that come through before you get to these multiples but you can't ignore the psychology of the markets right now which is getting euphoric and it's going to continue higher regardless of what the fundamentals are seeing. the one thing that would worry me is a 1.57% call on the ten year. from a discounted cash flow basis that would give you a higher price on stocks but that would be indicating such low growth in the world that i don't see how you can get the profit growths to support the higher multiples. >> we want to get to this story for us today. bill ackman releasing a video today. the 18th in the last 18 business days warning investors about what he calls the evils of herbalife. today shows a pitchman giving a hard sale recruiting members. >> my check went up $10,000 because of 2%. make them pay you you'r

larry fink's comments. we basically agreed.onfirmed when the earnings particularly in the second half show so. but today you've got a ream of data out, economic data, both here and abroad that is quite positive. industrial production, better than expected. retail sales, better than expected, and china's gdp. haven't talked about china in forever. better than expected as well. that would give the impetus for earnings to go higher. we'll always say allegedly. based against the alleged benchmark of 6.5%, came in at 6.7%. all would give impetus for earnings to move higher. >> tell you this, i love the debate. you've got the head of the largest asset manager in the world saying that stocks don't deserve to be at this level, and we have others who are sitting here and believe me, others i've heard from since larry fink said that who said he's wrong. somebody's going to win out. >> the problem, on the top side, we don't know what the valuation can go to at a negative rate environment and don't know what the multiple will be or where t

larry fink was on "squawk box" earlier today.s talking about where he sees the ten-year yield going and he meant to the downside. take a listen. >> i am worried that interest rates are going lower, before they go higher. i have said internally, and to our clients, that i would not be surprised -- i'm not predicting it, but if somebody told me that ten-year treasuries at 55 basis points, i would not be surprised. >> all right. greg, so, you know, is this a binary outcome or, you know, people have been arguing, it's supply and demand. but it just feels like, you know, a world in which central banks are supporting things, fine. we go down to 75 basis points. but a world in which the inflation and growth data is doing better, seems like that should take that scenario off the table, right? >> yeah, it casts in mind back to 2013, with the taper tantrum. that's when we had yields last at around this level. and the premise in the market was qe infinity. qe forever. the fed is going to keep on buying their 10 billion in bonds every month

larry fink cut 3% of the workforce, the biggest round of job cuts ever. three u.s.enators are trying to elevate local battles with airbnb to the federal level and are asking to investigate other home rental websites. some of the companies are full-time landlords who rent out the residences year-round. judge has awarded $91 million in the dispute of fees and charged by mastercard. the judge said mastercard charges restricted competition. in a the first ruling series of rulings. monsanto has revised talks with the asf about a combination of their aggro chemical businesses. this is bloomberg. ♪ vonnie: live from london and new york, i'm vonnie quinn. mark: this is the european close on bloomberg markets. monsanto is said to have revived theirabout basf combining aggro chemical businesses. latest twist as the world's biggest suppliers of pesticides and seeds try to consolidate. the industry that keeps on giving. every time we think it is quieting down, something else happens. monsanto said they were open to talks but it has gone suspiciously quiet. then we hear that bsf

despite calls from big-name investors like larry fink and bill gross that this global equity rally has run too far too fast. japanese equities headed for their biggest weekly game since 2009. -- gain since 2009. a boost to theen aussie dollar. i will have more shortly. yvonne? yvonne: juliet, thank you. -- juliette, thank you. in these, a truck was driven into of the steel day crowd -- as steel day crowd and killed 80 -- bastille day crowd and killed 80 people. what is the latest, and what do we know? the french interior minister did say that 80 people were dead after this attack in nice. 80 of them critical. -- 18 of them critical. they also said we are at war with terrorists, and they are working to identify the attacker. you are looking at pictures of what happened at the time in nice. you see the white truck plowing down the road. promenade, the strip running along the beach. you can see people running away. the french president also spoke thater today, and he said they must show determination, and he extended the state of emergency. he said they will see 10,000 .orces diploid -- d

despite calls from big-name investors like larry fink and bill gross that this global equity rally has fast. japanese equities headed for their biggest weekly game since 2009. -- gain since 2009.

larry fink of blackrock says he thinks the rally is getting head of itself. on the flipside, laszlo birinyi saying he is not yet seeing sentiment indicators that would show that the rally has extended itself. dow and the s&p have mitigated their rally today, come down a little bit. still trading at record levels. we are now on a five-based record the s&p 500. -- five-date streak for the s&p 500. it was enough of a move that we saw again by the end of the day. even though if you look at the trajectory, we coming off of our highs considerably. i have been watching volume, which is lower today than it has been recently. this looks and volume by sector. overall for the s&p 500, down 7.5% from the 20-day average good in particular, drop environment telecom stocks, consumer staples, tech, as well as materials. also, when you're speaking of groups, it is the financials that are doing the best today . heavily weighted within the s&p 500 and also percentage-wise as well. they did fall year-over-year but writing roger estimates. wells -- beat estimates. what wells farg

look, i am struggling like everyone else, larry fink, i happen to like larry, i just love him becausee just kind of knows what he's talking about. is it justified? sometimes it isn't justified until three months from now when we realize it should have been justified. sometimes we look back and we say, do you know what, things got better. the gloom that people -- look, it's never going to get better. how many of you have never going to get better? hey, do you know what, in 1942 it was never going to look -- never going to get better. we were losing at every single theater. we won. >> we turned it around. >> we turned it around. >> that's the way it should be. >> why? because we were great and we knew how to make things. >> okay. are we still great? >> are we still great? yes, we know how to make things. look, line is coming public today. >> that has nothing to do with us making things. >> we make intellectual property. >> we do. >> it's a valuable thing. we don't know what to do with people who -- the third guy who puts that hamburger bun on the wendy's burger because they now have a m

larry fink, the ceo of black rock which also reported earnings this morning had more of a dire prediction believes a short-term recession is coming because of it and believes rates will go lower before higher. >> although if earnings season can improve on this minus 5 expectation number maybe some of these are justified. >> still to come, call it the paypal of europe. how it's making waves in the online payment space. we'll speak with the ceo next and later on the halftime report, noon eastern right after squawk alley, bill ackman from herbal life, a lot to talk about today. he'll be on the half right after squawk alley. we'll be back. >> let's take a closer look with our next guest with the customers including the likes of overstock. he's the ceo of a stockholm based payments company and number 8 on our 2016 disrupter list. good to have you, welcome. >> thank you. >> bank of england talks about the resilience of the u.k. financial system. is that how it feels to tech? >> no, it's a disaster to be honest. it's so sad to see england leave the union but being the only start up unicorn it's

had bill grossve and larry fink from blackwell all talking about the fact that the market has gottenad of itself. you are feeling that it has? michael: i think that is correct. if you look at the market yesterday, it was not a dramatic disappointment. -- because the bank of england signaled something barry likely will happen in august -- in that sense, the market has gotten ahead of itself in timing but in the medium picture, it does not matter that much if we have to wait another three weeks for the reaction. expectations -- 50 basis points cut and qe on top of it. i don't think there is a crisis reaction in the near term. guy: to wrap this discussion up. before we let you go to your day job. the focus of the last few weeks have been on brexit and how the british economy is likely to suffer. -- taking amarkets step back and looking at europe in the round to figure out what is going on. what happened in nice last night is tragic but it will have an effect more broadly. it will ripple across europe. it will change politics in central and eastern europe. marketsme about how the percept

>> hopefully. >> and larry fink.. >> yes. >> and somebody said that he would be a great fed chief. and he is -- >> and maybe treasury. >> yes. we will ask him tomorrow. that is "squawk on the street" that is coming up next. ♪ >>> good wednesday morning and welcome to "squawk on the street." i'm carl quintanilla with david faber at the new york stock exchange, and how sturdy is the rally as the futures are up again today, but mildly, and the weeks are more interesting with the earnings, and politics, and bank of england, and jostled with the helicopter money coming to tokyo, a t

we have big-time people like larry fink from blackrock coming out and saying, maybe we should be more going into earnings season where we will be seeing earnings contraction, it might be time to reconsider. that's what some people think they think because sentiment is appearing to be so overwhelmingly positive right now, that can be a negative thing. part of the thing that power the bull market for the last few years is this undercurrent of pessimism this whole not everyone is convinced, so there's always money on the sidelines to pour back in when optimism peaks straight if you look at allocations, active managers are 97% full and their equity allocation, there's not much higher to go. there's a lot of speculation that may be that number is slowing. >> quite a u-turn from that gloom and doom following brexit. >> their clients are being recommended to hold some cash. how do those two positions align if there are 97% of active managers in equities and yet there is a lot of cash out there, why wouldn't equities continue to go higher? >> that was the big theme this year, how much cash wa

here's larry fink on "squawk box." >> here we are. we're seeing investors worldwide pausing. we have seen quite a large sum of money being pulled out of equities over the last year. and yet we're at record highs. this rally in my mind is not -- i don't think we have enough levels to justify at this moment. >> reaction now. >> guys, good to have you with us. i'll start off with you. i'm guessing you agree with mr. fink. >> yes, we do. we actually think what's happening right now is the world is definitely taking a pause. but we're seeing additional stimulus. and that additional stimulus, why it may push money into equity, it's going to put a huge bid on bonds. i think that's going to continue to be there. within equity, we think earnings will come in at $118, and there's still going to be bright spots. but it is overvalued. the p.e. multiple is overvalued. >> rob, it's interesting, because you can go through a lot of the conventional and say why should we pay two times the multiple for negative equity growth. how do you justify whether or not we deserve to be here with the mar

larry fink, who is a long-time -- for a long time talked about how companies need to stop the short-termhink long term, there was actually an activist investor on the list as well, jeffrey from value gen. coca-cola gave up guidance a long time ago, being a key holding of buffet, i believe they did. >> they give forecasts. >> but i don't think they give published guidance. >> independence of board rooms and away from the ceos and as soon as you go through the bank discussions with jamie dimon or moynihan no, they can become chairman as well. secret meetings, really? >> well, i think the point was they wanted to start a conversation and a debate. >> this has been going on for decades this type of conversation hasn't it? >> yeah. i mean to a certain extent the idea of all the things, yeah, but i'm surprised they didn't focus more on adjusted numbers, which we've seen more and more of and i know buffet has had issues with. doesn't seem to be something they came out with a conclusion on. just these constant adjustments that make it very difficult to really understand what the underlying is an

larry fink among them. the notion of reinvesting for the long-term. big point number one.r two, the notion of experience and steadiness as it leads to certainty. the markets and the business community like certainty as a general map of landscape. the more we have it, the more we are established and the more i see lieaders willing to make investment in people and in assets. >> are you surprised -- it's funny sitting here given particularly when we speak to ceos of international or global companies and there's so many that we interview regularly here they seem loath to take a position or a side in materials of the candidates. are you surprised that the business community would be moot to the idea of globalization? >> what i say is this, more ceos are willing to take a stand this election than several cycles in the past. you have leaders from warren buffet to aaron schmidt to sheryl sandberg coming out. meg whitman and hank paulson. they're not allowed to publicly endorse because you are the ceo of a public company. i'm surprised that there is so much support and our u.s. com

. >> and larry fink. and kevin worsh. >> yes. >> and somebody said that he would be a great fed chief. and he is -- >> and maybe treasury. >> yes. we will ask him tomorrow. that is "squawk on the street" that is coming up next. ♪ >>> good wednesday morning and welcome to "squawk on the street." i'm carl quintanilla with david faber at the new york stock exchange, and how sturdy is the rally as the futures are up again today, but mildly, and the weeks are more interesting with the earnings, and politics, and bank of england, and jostled with the helicopter money coming to tokyo, and the 10-year yield coming off of the 1.51 level yesterday. and the day begins with record highs again, and what could cause this market rally to slow down? >> general mills shares are up, and the ceo will join us on a first on cnbc interview after he rings the opening biell. >> and the prime minister set to take over for david cameron and what the change at 10 downing may mean for the futures. >>> and stocks looking to extend th

larry fink last week said nothing justifies these stock prices trading at highs, this high. think that he was considering that the possibility -- >> i've never heard of this before. >> listen, there's a lot of people looking at this thing. >> breaking new ground on "squawk box." >> earnings don't just -- it seems very hard to explain, unless, perhaps harold could be onto something here, sorkin. just put it in the back of your quiver. >> in your column tomorrow. >> trump rally. >> trump rally. i'm going to have to sleep on that one. >> could not explain it. >> he also dependent know anybody -- colleagues. >> stock prices great on the brexit thing, before and after they were great. >> among today's stocks to watch, bank of america, just off a call with the company joining us with the highlights, kaley. >> interest rate again in focus, bank of marc reporting income interest it makes off yields, that actually went down. it went up but below what analysts expected. cfo was talking about there are real tradeoff, longer dated secures brings security risks to the country so margins

it is everybody from you, mary barra, jamie dimon, larry fink. how did this come together?, jamie initiated it. he gave me a call and gave those other people a call probably a little more than a year ago. and suggested that we get together and see if we could come together on some earlier principles for corporate governance that might help show a pathway to the future. corporate governance has evolved over the years. we've got new constituencies that have become stronger. so it was an attempt to get general agreement, not total agreement on every point. but general agreement on some principles that would be useful in corporate governance. >> one of the figures that jamie dimon often cites when talking about sort of the -- i don't know if you want to call it a broken public market. the fact in 1996 there were publicly listed companies in the united states by 2012 this according to the national bureau of economic research, it was in half. 4,101. so many companies either taken private, people delaying, going public. of course mergers an the like that may have led to that. but

fink, the was larry index is rocking at home. are we at the bubbles? the bond market has been the driver the last few weeks. yields coming down to low levels. globale for markets. the biggest question for investors is what causes this bubble to burst? fx.ock on effects. >> -- profitould be a wave of taking. investors sitting on giant profits. when do they take that profit? that could happen at any time. it could be a casual trigger. a blood in u.s. data. -- blip in u.s. data. these are the sort of trigger factors i would look at. we have seen ben bernanke in japan this week, and that has people talking about helicopter money. it has been suggested and then denied. depending on how you define it, helicopter money is already with us. guess: it is with us in japan. we have had fiscal deficits where japan buys the bonds before they get to a secondary market. skeptical about whether there is another experiment that is going to do anything for the japanese economy. againsthe backlash negative yields seems to be entrenched. the bank of japan unlikely to go de