black rock larry fink talked about valuations in the u.s.s markets >>> joining us right now to talk market valuations and more, sam stillwell, the chief investment officer. i apologize. >> go ahead, andrew. well, make up something good >> what do you want me to call you? >> chief investment strategist cfr. >> that's the way to do it >> mike lipford is here. thank you both for joining us. we were just having this conversation with larry fink earlier in terms of valuations, whether we think that they're getting stretched, whether we think it's a multi-expansion story or whether the -- especially when it comes to the comps effectively a year from now. >> i think if you remember the movie "raiders of the lost ark" why did the nazis dilg in the wrong spot because they were only looking at half of the equation, half of the medallion. if you look to where we are now in terms of inflation, we're in the lowest quintile since world war ii, and on average the pe is where we are right now yes, it is an earnings story, and i think the growth going forwar

>> we spoke before about larry fink i'll tell you one thing.ified asset management 475. black rockinc. >> philip 66, psx, distribution and refining we like the stock. it has broken out of a long-term base we think commodity prices help >> dr. jay >> i know joe loves this stock, nxpi these guys are behind what happens when you use apple pay or any of the payment devigss. nxp semiconductors big buyout in april at the 120 sfri strike >> we didn't talk about tech outside of fang. two names, i would go with babba and don't forget about microsoft. >> you would never let us. i have owned it since adela came in, $35 a share and all it does is go up, up, up he knows the right thing to do jack ma is doing the same thing with ali baba. the growth struck yur they have rig right now. i much prefer that over amazon baba over amazon >> but you love microsoft? >> yes >>> thanks here is what's on the menu trade and taxes. president trump meeting with canada's trudeau this hour to renegotiate nafta as he gears up to sell his tax plan to middle class americans la

larry fink is moving his firm's headquarters here.e a lot of buzz about the fact these big titans will be moving here the hudson yards and marking a shift at how this city does business. vonnie: i still have not been to that side of town. shery: tell me about history repeating itself. is not the first on all these big names followed kkr. jason: that is exactly right. westade its name it 9 57th street. there were a lot of firms that went that way. oft you see is an extension something that has been happening in manhattan for quite a few years. i'm standing on the high line. it is one of the most popular tourist destinations. it has changed the way manhattanites and people in the tri-state area really work and live. but hudson yards is is about a lifestyle. is largely about where his employees with, where they want to live and want to work. you have got some really interesting aspects of this, not just the commercial aspect and the usual residential pieces. it will be right here behind me, the first equinox hotel. you will have the larg

larry fink sizes up the gop tax plan.on't think we will get tax reform if there is the elimination of deductible. >> stanley fischer on what it takes to leave the fed. bob iger and mark cuban reflect on innovation and -- >> we are living in a new world reality and we have to accept that. >> just like the net and streaming created multiple great companies, i think this will as well. vladimir putin takes question on donald trump and u.s. politics. it is all straight ahead on bloomberg best. ♪ david: hello and welcome, i'm david westin and this is bloomberg best, your weekly review of the most important business news, analysis and interviews from bloomberg television all around the world. the week began in horror about the nightmare in las vegas. >> it is the deadliest mass shooting in modern u.s. history. on the strip of las vegas, at least 50 people were killed and 400 transported to aerial ,- area hospitals when a gunman perched in a high-rise hotel, opened fire on thousands attending an outdoor music festival. he has bee

delta air lines both report results before the open catch an exclusive with the blackrock ceo, larry finkthat's at 6:30 eastern time. later on "squawk box," an interview with the delta air lines ceo, ed bastian at 7:00 eastern. >>> things kick into gear this week when we hear from citi group and jpmorgan tomorrow. goldman sachs next tuesday chris whalen is here with me, chairman of whalen global advisers good morning >> good morning. >> let's talk about the banks. kick off with the juicy trading part of the banks. which always gets focus, much to the disappointment of some ceos. it's been an area of disappointment for some of them. guidance has been tough for some in the quarter >> i think they all guided down. the street estimates are relatively light some are negative for the quarter. the best is bank of america, which doesn't hang its has the on trading so much, though they have merrill, but it's not a trading shop the way goldman and morgan stanley is. expectations are dampened. >> comps are tough compared to the same quarter last year within trading, all the focus on goldman sachs wh

larry fink talking taxes.he blackrock boss says president trump's plan will not pass without changes to it. gmail is now in the spotlight. ♪ betty: good morning, yvonne. uber in the spotlight, that breaking news within the last hour. let's focus on the auto market. i want to pull up a chart for our viewers, g #btv 2623. the month ofr september, the best so far this year. you can see that right here. just within the last few weeks. the yellow line represents the moment right before the hurricane that battered texas and the caribbean. now, auto sales skyrocketing after that. i guess you could say there is a silver lining for investors with the hurricanes. that meant more people are going back in the market to buy cars to replace the ones they lost in the south. that could be up to 500,000 vehicles being purchased. yvonne: hurricane harvey really damaged more cars than any storm we have seen in history. the big question is, will this be a one off in the data when it comes to auto sales? certainly giving fuel to j

talked with larry fink about the prospect of tax reform and the future of federal reserve leadership ong other things. larry: i think it will have to be amended and it has to be amended quite importantly. i am not a big believer in the reduction or the elimination of state and local taxes. i think that is quite harmful to some of the major states today. erik: this one right here. larry: including new york and new jersey. i believe one of the greatest problems in the world we have today, especially in this country, is a lack of savings for retirement and the liabilities that some of these major states have in terms of retirement. we stretched the state economically through the automatio elimination of deducty when people move. it creates bad behaviors within our own country. getting back to the specifics, there are a lot of merits and what was being proposed, but let's be clear. what is being proposed is a pretty large expansion of our deficits. cbo, our to the deficits are going to grow to $25 trillion in next 10 years before whatever this tax reform is or tax cut is. whether this tax

david still ahead as we review : the week on bloomberg best, conversations with larry fink, vice chairthe stanley fischer and disney ceo bob iger. plus -- vladimir putin holds court on donald trump. and up next, more of the weeks top of business headlines. the former head of equifax gets grilled on capitol hill. >> what we learned this morning is a that equifax messed up. david this is bloomberg. : ♪ david: this is "bloomberg best," i am david westin. let's continue our tour with the top business stories in spain, where political crisis rages over the independence of catalonia. >> in spain catalan separatist , leaders state they might claim independence later after 85% of voters backed independence. hundreds of activists were injured when they tried to stop police from shutting down the illegal referendum. >> on the ground yesterday and it really got nasty. some nasty pictures, a pr disaster for the administration is a total double whammy. they wanted to stop the vote and the vote happened and the yes won and they wanted to contain and continue to make this a domestic issue. it is maki

we've got black rock's larry fink talking about risks in the market earlier this morning on squawk. >let's be clear, the united states deserves a premium. our companies are stronger they are better managed over across many industries so i actually believe the u.s. deserves a premium to the other markets. >> not just that, jim, says he wouldn't expect to see any major reversal in equities until sometime next year. >> i love the guy, what can i say? every time i talk to him and see him, he has a sense of what's going on there are moments when he's pessimistic and not like he's permable, i like what he had to say and liked his quarter. i wrote a piece this morning for real money saying it's events that i can't see and north korea and the possibility of saudi arabia invading qatar. that could happen. when it comes to earnings, we deserve a premium. he's absolutely right. jp morgan is going to report you like jp morgan or royal bank of scotland? do you like citi -- someone early on will's show this morning trashing citi, his name is whalen and i'm listening, are you trashing a company that

i was trying to remember who i was talking to yesterday, oh, it was larry fink that's how i roll. >> know how it goes. you cram everything froo yoin y head >> oh, it was the treasury secretary. >> one time when mark haines was here, you cram so many people in your head and forget about it, joe put a newspaper in front of mark and said tell me who is the guest host today, wouldn't let him see who it was mark was like -- oh. >> called out. >> you remembered it more importantly you remembered the key point, the fed misstep risk thank you. >>> when we come back, the federal reserve is in focus, tons of central bank speak on the docket today we'll tell you what to watch as we go to break, let's check in on treasuries 2.33 i'll talk to larry summers later in the day about all of these topicss ll awe don't go away. you're watching "worldwide exchange" on cnbc. whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free! free? yeah. could save thousands. you should probably buy me dinner. no. go to lendingtree.com for

by the developers are turning to kkr her henry kravitz and blackrock ceo larry fink to give a welcome

larry fink talking taxes.rock boss says president trump's plan will not pass without changes to it. g

. >> still ahead as we review the week on bloomberg best, conversation with larry fink, vice chair of stanley fischer and disney ceo bob iger. vladimir putin holds court on donald trump. more of the headlines. equifax gets grilled on capitol hill. >> we learned equifax messed up. >> this is bloomberg. ♪ ♪ this is bloomberg best, i am david westin. let's continue our tour with the top business stories in spain, where political crisis rages over the independence of catalonia. catalan separatist leaders state they might claim independence later after 85% of voters backed independence. hundreds of activists were injured when they tried stopping police from shutting down the referendum. >> it really got nasty. some nasty pictures, a pr disaster for the administration is a total double whammy. wonvote happened, they yes and they wanted to continue to make this a domestic issue. it is making news over the world and giving the independent movement a lot of traction. a lot of tension during madrid and ours alone. > -- barcelona. if and when they will declare independence. they reiterated an of

larry fink sizes up the

earlier on bloomberg, larry fink sounded the alarm on the matter. y: i think it will have to be amended. i think it has to be amended quite ordinarily. i'm not a big believer in the reduction or the one nation of deductibility of state and local taxes. some of the major states today. shery: senator bob corker also warning that it raises questions about the gop's "intestinal fortitude" and it could jeopardize a tax overhaul. for more, let's bring in libby cantrell. she was the former legislative aid in congress where she focused on fiscal and economic policy. great to have you with us. we are hearing summary things from different sides. we are hearing republican leaders are also considering just putting a limit on these local and state tax deductions. given that they're so much uncertainty out there, how difficult will it be for these committees to come up with an agreement? libby: despite the headlines and despite the fact that we have been talking about tax reform for many months now, we are really more in the second ending ending of this process th

we saw larry fink, the c.e.o. of blackrock, talk about how much bitcoin is used in crimes.the chairman of u.b.s. say he is skeptical. we did have a couple of executives talk about -- give more balanced views. the morgan stanley c.e.o. said this might have some future, i am not totally convinced it is nothing. goldman's c.e.o. also said i have not made a decision on it yet. he brought up an interesting point which was people once viewed paper money as this weird thing, so who is to say bitcoin is not the same. cory: lloyd blankfein comes from the trading part of the business and understands the trading nature of it more than jamie dimon. there is also the aspect of jamie dimon's business on some level is about having lots of fingers in the pie when money is moved from one account, you write a check and it takes three days, and charges happen. that is j.p. morgan's business. if you trade a stop on the j.p. morgan platform it moves from one hand to the next. recording those transactions is part of their business. if blockchain can take that away, j.p. morgan loses all that bus

larry fink is here from black rock, and i should tell you, he is wearing an ifb.you, and he can hear that, and i'm sure you say hello back >> joe, that was very nice of you. and becky. >> melissa is back in studio >> you say the number for you is 4% i think that there was sort of a momentary pause in the room when you said that. >> we have publicly stated that. we're talking about over a ten-year horizon we're making far better this year because the equity market return there will be some markets where you lose 20%, 30% of the market, and we're talking about a balanced portfolio too that composes of bonds and equities and alternatives >> if you are right, at least in the united states, the big pension funds, if you think they're underfunded today, they will be remarkably underfunded ten years from now >>. >> it's a combination of how the cost of their liability is, and that's determined by the ten-year rate, and so if the ten-year rate goes up 100 basis points from here, much of the degradation of the asset return is going to be offset by the higher -- the higher

. ♪ emily: larry fink, ceo of black rock, is weighing in on cryptocurrencies.a listen. >> it is identifying how much money laundering there is being done in the world, how much people are moving currencies from one place to another. emily: bitcoin was on the top minds of another banker, goldman sachs ceo lloyd blankfein, who tweeted "still thinking about bitcoin. no conclusion. not endorsing/rejecting. no that folks also were skeptical when paper money replaced gold." bloomberg reported monday that the bank was exploring a bitcoin trading venture. here at the vanity fair new establishment summit in l.a., i sat down with outspoken owner of the dallas mavericks and asx ceo mark cuban. i asked him about the recent uproar over the protests in the nfl. take a listen. mark i am fine with it. : the nba and nfl are considerably different. think any football team and you might recognize three players. the rest have no platform, no social media following for some part. their only chance to make a statement about what is important to them is when the cameras are rolling.

more on what larry fink had to say this morning on "squawk box. >> the important thing is mr.ink came on and said, there is a lot of money still sitting on the sidelines. he mentioned particularly in japan and germany. overall, it is good to be the biggest asset manager in the world. look at the stock, folks this is a historic high. the numbers were really good i want to show you some of the numbers a little bit below the headline numbers the situation with revenues are up 14% this is the biggest asset manager in the world asset manager up 17% that's a lot when you are the biggest guy in the world how would you like to have margins of 45% total etf. 1.6 fritrillion how much is that that is about 55% of all the etf assets in the world. they are in a big fight with vanguard over pricing. right now, let's just say black rock is doing darn well. let's show you a couple other movers mcdonald's caterpillar, boeing, visa, what do they have in common, all-time highs, all of them we are seeing multi-year highs in all the other names a quick note on banks. they are a little weak usually

wrapped up a panel in the saudi future initiative in riyadh, which included christine lagarde and larry fink they said we are witnessing a shift in politics and investment >> that order will certainly change but will be rooted in a sense of community, in a sense of culture that is badly needed for us, human beings, individuals that need to relate to a sense of belonging. to that's broadly brushed. my key message is if don't address those issues now, we may move into a darker scenario. >> populism is going to grow and grow it was interesting to see how the audience chose how technology will change the world. but technology will create more populism because technology will help many, but let's be clear what technology will mean is less human input in the manufacturing of items >> populism is so important to pause on for a minute because it really potentially challenges the formula which the global has benefited from over the last 30, 40 years if you think about populism being essentially about the system not working for a big part of the population, rewriting the rules, there's enormous implic

business cycles, it often turns from the fed hiking interest rates to the economy >> that's something larry finkned about, too. michelle, thank you. always good to check in with you. >> stocks to watch today, ryanair says it is on target to post a record annual profit despite recent flight cancellations. shares of the low-cost carrier are jumping nicely up 5%. >>> wpp cutting the full-year forecasts again. the biggest advertiser is battling a slowdown in client spending shares jumping 1%. that cut was less than expected. wpp ceo sir martin sorrell will join "squawk box" at 8:10 eastern. >>> airbus earnings matching estimates but the company cautions it may miss delivery targets for the a320 planes. airbus also announcing it's in talks with u.s. regulate bers compliance violations regarding defense related deals. share is up 3% >>> apple could reportedly drop qualcomm components from next year's iphones and ipads qualcomm is not giving apple access to software needed to test chips in device prototypes. the two companies have been locked in a long legal fight apple said to be considering building

always says ignore the correlation, but they do tend to trade together it's not just jamie dimon and larry finkh comments about it bernanke and other bankers have had thoughts about when regulation hits, countries try to protect their own currencies. >> absolutely. no one has called it for a fraud except for jamie dimon and that's considered very bullish. >> dow up 134. let get to "the half" back at hq >>> and welcome to "the halftime report." i'm scott wapner our top trade this hour, taxes or else. the big market warning from the treasury secretary on what could happen to stocks in the president's agenda comes up empty. with us for the hour today, steve weiss, dave leven,hal, michael farr, founder of farr, miller and washington. let's begin with the markets, the dow surging thanks in mart to

at 10:00, larry fink this morning eastern time.rom new york, this is bloomberg. ♪ >> this is bloomberg daybreak him i'm emma chandra with your bloomberg business flash. uber is trying to save its business in its largest european market. the new ceo is in london today to meet with regulators who want to ban the service. fight unhappy drivers and a key regional manager who announced he's leaving the company. ubs may employ 30% fewer people. ceo tells bloomberg that technological advances will change banking. jobs that are left will be the ones where human contact is crucial to the delivery of service. goldman sachs is exploring a bitcoin trading venture. in talks with cryptocurrency experts. it has yet to develop a business plan. all they will say publicly that it's exploring how clients are interested in digital currencies. everyone seems like has an opinion on bitcoin these days. everyone from christine lagarde to bank ceos. cryptocurrencies may give existing currencies a run for their money. i have special concerns about virtual c

so larry fink at black rock, will he be involved?know. >> do any of these firms have conflicts? >> the index funds now have also adopted more of their own work to a certain extent, they spent a little bit of money, at least, they'll say more, but want to keep their fees low on examining these kinds of corporate governance issues. >> do they care whether the stock goes up or down? >> i don't know. i don't know if larry fink will be involved, i doubt he would be they do have 401(k) business they solicit from the p&gs of the world. >> wait a sec. >> you wonder if that plays into it >> if they have 401(k) business from p&g, then wouldn't they vote their interest in number one according to mr. laughly who is number one. >> they don't want to antagonize them and jeopardize the relationship i don't know that happens. >> but you mentioned it. >> by the way, since we're going through vote totals, they need vanguard or state street it would seem, at least vanguard or state street and black rock and they hope to get one third of retail, retail

larry fink has an interest. david: i'm happy to see we are not on the list.: i hope stubbs is not on the top five. this invokes one of those moments where the president of the united states says, wall street is going to have to suck it up. these kind of events, they don't come along very often. the emerging markets are very hard. when you look at the puerto rico situation, playing havoc in many different directions. david: there is a whole range of issues, budgetary being one of them. you're more than $10 billion package it with seen all of the devastation in the keys. now you have the puerto rico issue which comes into an economy and a debt situation that is already extreme the fragile. this was in the macro issue before the macro desperate for the power grid was destroyed -- before the power grid was destroyed. the economist wave a magic wand and get people to pony up the money by canceling the debt and what you can do is pass the relief package to congress. i would imagine that is the more conventional route but we are not seeing a conventional president.

julia: that was an exclusive interview with larry fink, chairman and ceo of blackrock.e spent a lot of time talking about the bitcoin debate. lloyd blankfein joining in, he is still thinking about #bitcoin. no conclusions, not endorsing a rejecting. it folks were also skeptical when paper money displaced gold. they were breaking the story the goldman sachs are questioning on how to we get involved in trade this. scarlet: they want to keep their options open, as opposed to jamie dimon, who made very sure that he would fire anyone in the firm it was trading bitcoin. julia: personal views on bitcoin versus what they are trying to do. they are not saying fraud. we will discuss, no doubt. from new york, this bloomberg. ♪ scarlet: this is "bloomberg markets," i'm scarlet fu. julia: i'm julia chatterley. scarlet: richard smith is a not see today, testifying about the data breach that is only done bigger area the number of affected u.s. consumers is increased by 2.5 million to a total of 145 million. lawmakers grill smith on a timeline for the incident, including when chief leg

. >> right with a premium that we deserve, according to some like larry fink dominic chu is watchings action at hq as we settle a point below 23,000 now dom? >> carl, you talk about wealth creators in the world getting richer one of the places that has been a big, at least contributor to that, has been netflix stock you guys have been mentioning earlier, obviously, after hitting the record high we saw earlier in the session, netflix shares up 62% over the last 12 months they have doubled we wanted to look at netflix stock and the history since 2002 it's had a lot of big gains and losses it hasn't been without at least some bumps along the road here, but it has been a stock that's at least doubled five times in its public life. if you go back to calendar 2003, a year it was up nearly 400 points, but the following year it loses half of that value, in 2005 another doubling from those low levels and then fast forward to 2010, more than triples in value only to lose more than half of its value in the year after that and then up 300% in 2013, up 134 set in calendar 2015 five times in its h

they do tend to trade together it's not just jamie dimon and larry fink with comments about it bernanke and other bankers have had thoughts about when regulation hits, countries try to protect their own currencies. >> absolutely. no one has called it for a fraud except for jamie dimon and that's considered very bullish. >> dow up 134. let get to "the half" back at hq >>> and welcome to "the halftime report." i'm scott wapner our top trade this hour, taxes or else. the big market warning from the treasury secretary on what could happen to stocks in the president's agenda comes up empty. with us for the hour today, steve weiss, dave leven,hal, michael farr, founder of farr, miller and washington. let's begin with the markets, the dow surging thanks in mart to ibm's big beats but it's comments from steve mnuchin about tax reform and stocks that investors are talking about. tax reform or look out below is that what we need to start thinking about >> well, i think, number one, we don't want to pass a tax bill just to support the market markets are up 80% of the time, number two number two, i

guy: we spoke to larry fink earlier. let's get his stocks -- his thoughts.ed islieve a successful a federal reserve we do not have to talk about that often. a fed played a major role in the 2008, 2009, 2010, and 11. -- the federal reserve played a significant role in stabilizing our economy. we have a normalized economy. there is a conversation about what the fed is going to do. more informedh about how we are driving jobs in our economy. talking to erik schatzker. too three fink's we should not have a fed that we spend a lot of time thinking about. it should be a fed that it -- in some ways exists as an institution, and that an individual. are we putting too much into the individual rather than the framework that exists within the driver ofltimate policy, really looking too much at the person rather than the institution? mark: i am not so sure. what there he is describing is an ideal world. for a long time we had the cult of the fed chair in the u.s., from greenspan onward and before then. very much now we have this world where it seems to be driven by thei

larry fink told bloomberg cryptocurrencies show how much money laundering is done in the world. >> ie potential of what a cryptocurrency can do. i see huge opportunities. but what we are talking about today is much more of a speculative -- people are speculating. most importantly, when i think of most of these cryptocurrencies, it identifies how much money laundering is being done in the world. how much they are trying to move currencies from one place to another. i believe you're seeing demand for it. but if we created a true global digital currency -- i hate the word crypto, a digitized currency, then you would not have money laundering anymore. you would have everything understood, everything flowing through, everything would be identified. you would see all the application. except, i am horrified on one point. how do we preserve the system from cyber problems? is usinghe whole world this one network for financial transactions. it presents a lot of systemic risk. julia: that was larry think, ceo of blackrock. joe: we have a breaking headlines, telling the bbc they will declare ind

we talked to larry fink a number of other people. over the next decade, where do you think an average rate of return should be for the average investor who is watching now >> it depends on whether they have access to non-traditional investments and the ability to make intelligent use of them with them i think they can get up to -- i understand most people are coming out at 3, 4. i will give you 5, 6 normal nall with so nominal with some alternatives stock and bond markets are not likely to deliver that howard marks, thank you. i like the optimism amid some pessimism. guys, back to you. >> thank you very much >>> when we come back, quarterly results just in from the nasdaq. we'll talk to the ceo next on we'll talk to the ceo next on "squawk box. under our museum. we'll talk to the ceo next on "squawk box. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. you myour joints...thing for

it's not going to be what we saw 8 or 10% ago >> is larry fink right ron. does larry's forecast sound right to you, or too low >> well, if you're just in the u.s. and you're thinking a balanced portfolio which in my world, that's 60/40, i think that could be so, i think it's more because of the bonds than the stocks i just saw leon just in the hallway here, and he stole some of my thunder where bonds are the bubble, and i've been saying that with you for a while. bonds are the problem, not stocks, and global growth -- we're bullish on the world, our major thing for years and years is that we don't hear about caterpillar takings share from deer they're both adding to sales because of the global growth, as long as the world keeps growing, these companies including boeing and apple have more clients and customers who are bullish on that a rising interest rate, especially in some kind of pool bond account, we've seen the best of those days opinion. >> is ron right? address the overall issue, whether you think a 4% return is a reasonable expectation over the next

some of those people will get hired by the larry finks and the janus hendersons who will be hiring more researchers to do more internal research >> think about that. people at home may not care. there are 35 companies with the market cap of over $500 million that have zero analysts covering them we are highlighting some of them on power lunch over the next couple of weeks. if you are right, there will be hundreds, not small companies but companies with $10 billion market caps with zero or one analyst covering that. that seems scary who is minding the score >> capitalism functions on good information flow the intended consequence of this rule change is, okay, let's make it really transparent in how people pay for research and probably change who pays for it. that's the intended consequence. the unintended consequence, you are going to radically change the research on wall street and reduce the amount and reduce the coverage for companies trying to get included >> second der i have tiivative t do they need to get big or go away >> there are a host of pressures on asset managers which driv

with many of the biggest names in the world here one of whom is a long time guest here on cnbc, larry finks here from black rock. we had an interesting conversation was going on in the rally taking place in the market his answer about what's driving it may surprise you. >> i think much of the market rally has been based on this global growth effort i'm talking about -- >> not based on policy. >> no, policy -- >> or even the idea of policy and what may come. >> i think policy has proven to be disappointing so far. i think if we get tax reform, which i think we're going to get, whether it's in the fourth quarter or first quarter, i think we're going to get it. i think the market will say another leg up >> mr. fink also made headlines and almost pause in the room during the panel this morning when he said over the next ten years the average investor should expect a return of only 4% we had that and a lot of other news, clause klein field former ceo of alcoa, hired to run a $500 billion economic zone in the southwest of saudi arabia. you heard you talking about self-driving cars and share ridi

. >> we heard from larry fink earlier of blackrock on cnbc this week saying one of his biggest fearstep, the fed getting too aggressive on policy is he right to worry about that? >> i think he must be talking about too aggressive in an upward direction there's also too aggressive in a downward direction i think you can rely on this fed to be pretty measured in what it does >> so you think they should still be hiking rates despite the sort of lack of inflation at the target rate? >> i don't want to go into - >> you're supposed to share everything now that you're stepping off >> i am? well, we'll do another interview after i step down. >> we'll get the real truth. >> one other big topic of conversation here at the imf meetings, do the central bankers have the tools globally that they need in case we enter another downturn >> well, i mean, the theory that the central bankers have to do everything is not right. there's also fiscal policy, and fiscal policy really matters it's more effective when the interest rate is at zero and then the fiscal policy doesn't affect the interest rate so a

larry fink believes he is seeing accelerated slows into his etf. says theew york mellon u.s.gned to improve quality could more than triple american etf assets in five years. in japan, a scandal keeps getting bigger. bullet trains have been found with substandard parts. the parts don't cause safety risks, but failed to meet industry standards. steel still in the news. -- is theckland has administrator of the national highway safety administration. he joins us from washington, d.c. if you were at net said today, would you look into the nhsibility -- if you are at today, would you look into this? >> it is usually a proactive situation. when you get reports of possible things that would make a vehicle not compliant or defective. they should be looking into that as we speak. david: how do they do that? it is more of a data exchange. they would ask for manufacturers to make a report or give up information about issues affected by kobe steel. it may take time to figure out what the components were and to test them. what you think about is whether or not the product has presented to

jamie dimon has called it a fraud, you know, larry fink said this is an index to money laundering warrenaid he wouldn't touch this with a ten-foot pole. prince awaleed said last week on cnbc, he thinks it's like enron. why are you doing this >> well, bill, nose are all interesting comments and what i think those people are referring to is the way bitcoin is being transacted today. but when you look at what cme brings to the equation on our platform, such as the margin processes we have in place, the risk models we have in place, the distribution of our systems and the different logic that we have built into those only systems to make certain that the credibility of this product can be traded appropriately, is a lot different than i think that what some of the comments that have been made in reference that you -- that warren buffett and other people have said so, yes, we're well aware of what people have talked about on the dark web, what it's being used for, but you can't ignore the fact that this is becoming more and more of a story that won't go away by mainstream companies that want a

larry fink will be here.ing to be here it's a who's who richard branson, who was in town with us last week, he is making his way out here big questions about perhaps maybe the saudis who will be the first to do hyper-loop, and we have virgin hyper loop one we have more coming from riyadh. back to you, guys. >> just to clarify, correct me if i'm wrong, the prince thought that -- i thought what he was saying was that maybe as much as a quarter of the gains that we've seen were due to taxable >> yes, that's fair. >> if you were to give back, you wouldn't be giving back a quarter of the market. you would be giving back a quarter of the gains >> yes >> yeah, a quarter of the market, that would be a lot worse than a quarter of the gains. >> that would be a lot >> okay. >> quarter of a gains would be enough given the past two years. or year and a half >> yeah. i thought that was interesting, andrew, some of the other stuff about -- he is very frank. he is blunt. he is blunt. >> so frank. >> he is blunt >> he is blun