francisco blavrge with bank of america merril lynch global research. oil ha a long way with deciding how americans feel about the economy and decidedly more optimistic. as steve liesman reports, there's more to the upbeat mood of the public. >> reporter: americans views of the state of of the economy reached new heights in the latest cnbc home economics survey. a record 27% judge the economy as excellent or good. the highest level in 8 years. a year ago, just 16% of the public gave economy good marks and it was just 4% at the beginning of the 2008 recession. the cnbc poll of 800 americans across the nation shows how far the public's attitudes on the ec come just the economic recession ended. but also how far there is to go. the level of optimism remains about 10 points lower before the financial crisis and yet, well above the worst levels during the downturn. views on the economy were helped by an upbeat outlook on expectations for wage hikes and home values in the year ahead. on the outlook for the public econ recover. 1 point improvement from last qu

. >> you own bavg of america for merrill lynch, why not own the merrill lynch proxy or even better nowrgan stanley? >> that's why i say own morgan stanley for the wealth management turn of event. i want goldman sachs to go out and purchase an asset manager and really make a strong commitment to the wealth management division. and bank of america has not figured out what to do with the crown jewel of the franchise, merrill lynch. >> they've figured it out, but merrill is not thrilled with what bank of america wants to do. >> i think -- >> morgan stanley is a great company. gorman has done a great job. goldman has done a phenomenal job, too. frankly, i think the prudent thing is to own both companies and the only question i have for you, real quick is at the end of reporting, at the end of reporting, what's going to be the one stock here you're happy to show -- >> this is payback. >> citigroup can buy back stock 10% below tangible book when book is clean. te tell me when else in the last 20 years you've seen that? >> that's the last point. >>> coming up, joe makes a trade in the halftime

if you are working at bank of america or merrill lynch, and a make a referral, you are standing in theof bank of america, he could say that bank of america made the referral and he got ripped off, this is a sad story. charles: you work with a lot of athletes, you know, a lot of them come to you they have squandered a large part of the fortune, what do you tell them? how go they change it. >> i give them a nice road map, and a interesting apple gee. but i tell them, do not invest in any private investment until you have 3 million put away after taxes when they do invest in private, do not put more than 5% of your net worth, in that case, 150,000, in 5 or 10 different ones, then, reduce your spending, and that is how you go about it. >> don't get divorced, jamie -- >> i want to comment on the ca case. often times people are good what they do pro prog alley, not -- professional, we had ronnie, and narc us allen and others are who savvy, but the bank has a fiduciary obligation, if he signed off, it is a very tough case to win. >> the law firm, lawyer is saying that because of the represent

specifically merrill lynch.der if the merrill lynch bankers don't like having a big bank attached to their business. >> they hate it. they hate it. >> maybe some of them do. they're the most interesting part of bank of america. how can you separate the two? i don't know. you'd have to make the case to the fed. another quick aside, citi. people have talked about breaking up citi. card processing. the credit card business very valuable by themselves. if they were stand alone businesses, trade at a much higher multiple than a bank. >> i will say this, the mamerrill lynch guys, it's the firm that brought wall street to main street, those brokers, 15,000, would love to be out from under the thumb of bank of america. liz: but is bank of america too big to manage? too big to fail, too big to manage? >> we didn't have any big surprises in this season's earnings. because the banks are so large, they generate surprises. that's bad for equity investors. for bond investors, it's a matter of -- liz: sounds like it will be si

tom: thank you from the bank of america, merrill lynch looking out decades. i'm waiting for someone to come on to chat up the inflation trade. as we head to the break, our twitter question of the day what do you think? would president hillary clinton be good for wall street? we want to hear your thoughts. this is bloomberg "surveillance." tom and i will be right back. tom: good morning, everyone, bloomberg "surveillance." the yankees crushed the boston red sox. season's over. we welcome you to bloomberg "surveillance." olivia: i'm so proud of you for admitting that. tom: season is over. what is it, april 13th. season is over. need a single best chart to get me out of my depression. olivia: while on the beach, g.e. capital selling off its real estate assets to blackstone for $23 billion. it's the largest real estate transaction since the financial crisis. the chart you're looking at on screen shows that u.s. commercial property prices are now 7% higher than they were during the 2007 peak. very interesting. with us on set is dan. what do you think of this deal,

economics of bank of america merrill lynch. >> we were largely disappointed by the composition of gdp growth. energy cap excollapsed strongly due to the drop? oil price. it looked like the stronger dollar weighed on economic growth. the trade deficit widened. and those two factors are potentially going to continue to hold back activity into q 2 and perhaps further. in response to the weak data we revised down our forecast for q 2 to 2.5%. for the full year we are forecasting growth of 2.4% which matches the rate of growth we had seen last year. given the weaker tone to the data, i think all eyes will be on the next few data releases with hope that things do improve. in particular i keep an eye on next week's job's report for the month of april, the march numbers were quite sluggish. the hope is that things pick up and momentum builds again in the economy. >>> policymakers at the u.s. central bank lowered their assessment of the economy but stuck to their policy of a rate hike in a future meeting. the statement released after the meeting says economic growth slowed during the winter mo

they say the people involved have never and not work at merrill lynch. from the fox business network. giving you the power to prosper. ♪ senator elizabeth warren breaking her silence on hillary clinton to an unlikely source. she was surprised by clinton's e-mail use saying she thinks she should make it public. i do not know the details but they should be released. senator warned a making a nice cover girl for the next issue. look at that. a political strategist. elizabeth warren, why do you think she chose to go to cosmo? i thought that it was quite interesting choice. trying to think of something to the effect this. what demographic do i need to reach out to? i think all of the democrats have done a very nice job. something that for publicans can learn from. instead of criticizing her all she comes out saying is i am surprised she did not use a government e-mail. we know now that her server has been wiped clean. she was good to the people that were running away were fleeing from clinton. she should have been more transparent which is something that she

joining me mary ann bartels is here from merrill lynch.rol roth welcome one and all. also with us for more on today's markets, "fast money" trader guy adami. good to see you here too. carol, let's sart with m&a. this is your bailiwick. let's try not to use the term m and a so much but dealmaking. >> love to make the deals. >> energy deals, pharma feels. we're really starting to see it. >> we've been seeing it and we're going to continue to see it kelly. the lending environment is very very favorable. the interest rates to raise debt are very very favorable. and, frankly, companies have nothing else to do with their money. they're either returning it back to shareholders or they can try to find some way to grow since they haven't been able to do that organically. so we're not going to see this stop at any time. i do wonder though with all this m&a and with all the buybacks what that means for multiples. since we have so many dollars that are chasing so few opportunities, will we see permanent multiple expansion based on the fact that there

joining me is adam parker of morgan's family and michelle meyer of bank of america merrill lynch. potential thing comcast could do is look overseas for a potential deal. this is money going out of the u.s.. you think from where we -- from where you said that we will see more of that? >> i don't know. i am not really in a burden on this. there are businesses that trade below, and i think there is always logistical challenges, so it can be trickier than it sounds on paper. it is outside my. alix: we of seen this in europe with the antitrust case in europe as well. what about the currency? the higher dollar, the weaker euro. maybe comcast they be looking to europe? >> it is possible. i am not a next art. you have seen a dramatic move higher in the dollar. so i think that trade flows are obvious going to be adjusted. this will probably in the business decisions. >> on matters of investing, i think the area of mergers and acquisitions, it is out right of what i focus on. there is a lot of implications to it. alix: joining us for more on the time warner comcast deal is an mna attorney f

merrill lynch says to draw the line at $63 million.rveyed high wealth individuals and the consensus was that $64 million was too much for one child, $26 million was too little. estate taxes factor into this in a big way. we are looking into i/o hacking, the practice -- bio hacking. we traveled to seattle washington, to witness what one pioneer can do with the wave of his hand. >> this is megan. she is about to be one of the world's newest minders, people -- grinders, people who bio hack their body in order to have superhuman abilities. are you ready? >> i am. >> the man with a steady hand is in planting this, a chip for radiofrequency identification. rfid. >> that's it. >> it wasn't as bad as i thought. >> megan is one of a small but growing group of people embarking on high-tech upgrades. why? >> have a believe that most things in life are improvable, and that it is our responsibility in life to act on that improvement. >> this is one thing you can do keyless home entry. abel shows off scars from past experiments. today, he has two ch

i don't see merrill lynch coming out in the organization as a flower. somewhere it's in there. merrill is a peopleremier name. >> you're talking more when you say bank that implies investment bank. you're talking brokers. >> it's such a good business now. it's so good you want to be in it. it is the jewel. i just don't see the jewel being polished. >> on that note let's, we're going to get breaking economic news here. industrial production is on the way. good morning to you, rick. >> foormgood morning carl. utilization rate 78.4. that's a bit on the light side in terms of expectations and if we look at our last look, a wis whisker under 79. it moved up to 79.0. we gained a little bit on the revision but it obviously, sequentially is lower. if we look at what industrial production was this is a big miss. down six tenths. we're expecting half of that. we have the minus sign, right. we look for minus three tenths. this really finishes alight data. so we're going to continue monitor, of course and interest rates continue to hover around 186 and any of you out there that trade tens,

people laugh at john, the guy at merrill lynch about the hippies and making people eat wheatgrass andt. and there's other stuff. every one of these places has their garbage to deal with. this is bad stuff right now at morgan stanley. by the way, gary, we should point out. she's joining scaramucci on wall street week. >> that is fantastic news. he'll join us too? charlie: i should ask him about the toxic environment. he works in a brokerage environment. >> thank you so much. charlie: congrats to gary. >> closing bell 31 minutes away. another stunning breach of security in our nation's capitol. is the us equipped to deal with more serious threats than an older guy and a handmade gyrocopter? we have one former faa official on what needs to change. by the skin of their teeth, a miss is as good as a mile, the brooklyn nets beat the magics to make it to the nba playoffs. a fox business exclusive. we've got bruce ratner the majority owner of the barclay center. a stunning revelation in his life. an important cause. the museum of jewish heritage. he reveals a stunning revelation live when we

now bank of america merrill lynch is cutting it's forecast for s&p earnings expecting the first yeartive growth since 2009 due to the impact of the strong tlar. we've thrown these numbers at you now. let's talk more about how to invest in the space. he is the chief investment officer and portfolio manager. good morning to you. you say earnings season creates buying opportunities. don't tell me that every miss out this will be a buying opportunity. >> no but i think the way to participate in the earnings season is if you are looking at a stock that you think you'd like to own but it's too expensive, it can create some volatility and it's a great opportunity, for example, during the last cycle, you could buy a few company -- we bought a few companies that we particularly had our eyes on. we were able to immediately buy the stock. sell a deep in the money call and lock in a hedge to return of about 11 12 13% depending upon the security and giving ourselves 10 12% of downside protection. so in an overvalued stock market it can create an opportunity to do some interesting things in the st

merrill lynch surveyed high net worth individuals and if you have 100 million to give $53 million ish for one child, $26 million is too little. estate taxes figure into this in a big way. in this week edition of wiring the world, we are exploring the realm of bio hacking, a growing number of people are inventing -- implanting microchips under their own skin to give them beyond human abilities. we traveled to seattle washington, to witness what one pioneer can do with a wave of his hand. reporter: this is meghan. hey. she is about to be one of the world's newest grinders, people who bio hack their bodies with implants for extra human abilities. are you ready? meghan: i am ready. reporter: a bio hacking pioneer is the man with a steady hands implanting this. >> there it goes. reporter: a chip for radiofrequency identification or rfid. >> that's it. meghan: not as bad as i thought. reporter: megan is one of a small but growing group of people embarking on high tech upgrades. why? megan: i have a believe that most things in life are improvable. that it's our responsibility to act on that

the chief investment officer of portfolio strnls for merrill lynch.l names like apple. what have we learned from a noisy mish-mashing earnings season? >> essentially, analysts cut their numbers the worst since 2011 because of energy because of the strength in the dollar. it looks like they overcut. so net half of the s&p is reported. they are reporting better-than-expected earnings. so i actually think the environment looks pretty optimistic. the market is not that expensive. pockets of the market are still pretty cheap, particularly in big technology and old tech feels cheap. >> it seems like it reached melt item in the last few days. investors don't have the same kind of patience when companies are citing the weather the poor congestion, the strong dollar you name it. >> the other concern is gdp is not coming out the way serve forecasting. everybody is confused why the economy is not picking up. some of the recent data is the consumer hasn't responded to oil. we have starting to see the consumer spend kind of that middle class spend particularly on

. >> last night we told you about nfl linebacker suing bank of america after a former merrill lynch brokers what he sole maria bartiromo this morning. >> i worked really hard for my money, i did not want to be a statistic of an athlete doing the bad thing not putting their known in a safe place, bank of america recruited me, i trusted the bank, i put my money there. you know, in a few years later found out they started to steal my money, they lied they ripped me owpoff, they got a lot of good people jobs, some of the businesses i had had to let those people go. this is ridiculous, they brought me there to steal my money. gerri: wow. right. truth is. you can avoided finds yourself in is a similar situation by investigating a broke broker before you hire him or her. broker check.org. and consider hiring assert fid financial -- certified financial planner or advisor. according to the law. this is my two cents more, that is it for tonight's willis report, "making money" with charles payne is up next, have a great night. charles: i am charles payne, you are watching "making money," believe it o

they have merrill lynch which is an investment platform.you're a bank that real ea doesn't have capital markets and, you know, you kind of pull as many expense leverage you can, the environment is getting awfully tough. some of the banks like jpmorgan, citi. they have the expense lever. scale matters more now than ever. we're starting to see the advantage of it. >> looking forward in terms of investment banks, goldman sachs is coming out later in the week. i know you sounded positive about that. what are you looking for in terms of their earnings that will impress or depress you? >> pretty good in the first quarter and pretty bad in a year ago first quarter. for goldman sachs a big player. they had a really good year last year for announcements. also in trading. the way trading has gone. you want to be in the mackerel products. interest rates, currencies and maybe not so much in spreads like credit trading and mortgages. goldman is a leader in all of them. in almost any market, they have a good trading mix of revenues, but specifically now.

well a senior strategist at the bank of america, merrill lynch formerly worked for the imf.lier the challenges greece faces over the coming few days. >> indeed, they found the money to pay the imf today but they 27u)áqq key challenges ahead to avoid a default in may. first, they immediate to reach an agreement by the euro group meeting on february 24th. we need to see sufficient progress in the negotiations that we will lead to a deed. second, the greek parliament will need to vote on a new program with the rest of europe, that will include a number of reforms and measures. and we still don't know if they have the votes or not. the government has not talked to parliament yet. and third they need solutions to fund the government in the meantime, because of the large majorities ahead, including to the imf in early may. >> okay. we're going to keep across the greek is aga, but we're going to talk now about what it takes to get oil out of the ground because an oil exploration firm here in the uk has announced that there could be up to $100 billion, $100 billion barrels of oil be

this is the bank of america, merrill lynch, move index for the volatility for the u.s. red circle right there highlights october the 15th of last year. that day an unexpected flax rally went reeling. it is swung the most since 2000. jamie dimon to call that a warning shot. -- called that a warning shot. volatility that day was quite incredible. it jumped 35%, the most since december 1980. what is fascinating is where it stands, yesterday it fell to 74.9. the green circle there of 98.47, the move index has sunk by 25%. heat from asset management at merit securities says the. of calm was caused by slow inflation and a fed that said it will not raise interest rates this month. he warns that when inflation comes, it will be problematic. he says we have not seen the fire yet but the market is about to be burned. he is avoiding treasuries. the yield on the benchmark 10 year ended at 2.17% last year it is now 1.88%. that is why four basis points above the 1.64% low for 2015. keep an eye on this chart. where is it? caroline: for roche -- the u.k. has pledged tax cuts and more s

bloomberg -- bloomberg reporter and had a great strategy research at bank of america merrill lynch.ke i have to dream team here with you. you hear talk about stopped but the 10 year yield drastically dropping off a cliff around 2:00. now yields below 1.8%. why do we see that? >> i think youwe have fully yesterday. this goes back to the point about financial conditions being important. does not matter what the fed is doing but rather what financial conditions overall in the economy are doing and the fed is very finely attuned to the notion. and alix: we're looking at stocks flat on the day. this is giving up a lot of games -- gains. the nasdaq off by seven. a real reversal as we head into the close. for a look at the day's biggest equity movers let's go to scarlet fu at the breaking news desk. it was a puzzling day. scarlet: the deals that took place fedex was one that everyone fixated on. you will remember ups had tried and failed to buy them for $2.2 billion more than what fedex is offering but regulators did not approve. fedex has gotten rid of some of the air transport business i

we'll talk to a top currency strategist from bank of america merrill lynch next. later legendary tv producer tom werner going to be here. he launched unbelievable careers. >> mork and mindy. saw a comedian and said happy days we immediate a spin off. how about an alien. >> do you know who else? cosby. >> oh okay. >> you love the stuff that could make news. >> the stuff that makes news. it's a news show supposedly. >> plus our news maker of the morning, rob manfred will step up at 7:30 and you know what i'm going to ask him about. i saw pete run into ray. >>> oh hi. welcome back. if you're just waking up this morning, big news out of dow component general electric. ge is selling most of its ge capital assets. assets of ge capital sold to blackstone. also authorizing a $50 billion share buy back. 26.20, to 26.27 but by the end of the day it could be up. >> it moved up yesterday because you had the story on the black stone deal coming out. >> up 75 cents or so. how many shares are still outstanding. >> they're talking about the buy back shrinking into as little as 8

is not just discretionary but a constitutional obligation leone did i fought these battles in merrill lynch against the teachers union it is a moral issue. we cannot be surprised when resend kids to dysfunctional schools in the end up in juvenile hall. we cannot be surprised it is unconstitutional and unsafe. those kids to not get a quality education they go into the street and then make the streets of save. we own the issue we own choice we should go to every inner-city ever refer to say your kid is not getting it? common core is not a good idea. looked at were the problem is it is school systems that do not do their jobs. and we stand for and fight for and a talk about to pass remedies for those kids. we own that issue. we did it before it was cool now everybody talks about it. because democrats say we care about people. guess what it is an issue with the republican governors. a fiscal issue and common sense but most of all it is to define our party because it is all about justice for those under not voting for us that we will just be okay. those of the blue-collar votes really losing. me

brian: gorman came out of the merrill lynch r.e.m. which i did. we were together for a time. for all of us is to wrap it up. wall street, main street and in terms of ethic gathering, that's the theme. think of the cake right? the cake itself is wealth management and fees and assets. the frosting is the institutional business now. what got us in trouble in the 1990's and 2000's is we try to make the cake -- tom: we're all frosting. brian: the opposite way around. and that's a stronger case. tom: but that 22% for gobble wall street down the road on wealth management is extraordinary. we'll come back on the state of wall street and also of course, brian belski on valuations within the equity markets. thanks for julie hyman for that look at morgan stanley. let's and a data check here. equities bonds, currencies and commodity. futures up 11. churning to the two-year yield to get an economic data is to a housing set of data. and nymex is stunning. the ruble is stronger. canadian dollar is stronger as well. brendan: this is "bloomberg surveillance." we're going to go straight tour h

libor -- stephanie: is it noteworthy at all that jain's backgrounds -- he started originally at merrill lynchn. so he knows this business better than anyone else. edward: correct. you also have to balance that with the fact that we have had -- how much more appetite is there for regulators and politicians to remove another ceo? making this investigation last so much longer than ubs, barclays, and have a dozen other banks, it it may help his position. erik: is it possible the german regulators are concerned about interfering too much with deutsche bank because it is the national championship. it is all of those in one, at least in the german context? edward: the german regulators investigating libor have not reported in today's settlement. we will see what they have to say about this. erik: edward evans, great to have you on the show this morning, from our london bureau. stephanie: we are waiting for a long time for the shoe to drop. it was a shack -- it was a shaq- sized shoe. the conversations that we will have right now is going to be a good one. ♪ erik: coming up, amazon shines a light on

first time since 2009, recent merrill lynch reports talked about global nominal gdp growth was expected to be down in 2015. corporate earnings are down. it looks at we have zero growth for gdp growth in the u.s. europe is slowing down although the markets are out due to quantitative easing. jonathan: david, i am going to agree with you. this year, we will have near zero growth because of the fallen oil prices but i don't know if this is the report you are quoting, but eps should be in the high single digits, even taking currency into account. gdp in the u.s. is expected to be the percent. i don't think it will be that strong. i think it will come in weaker. again, if you are looking at a bear market, the question is are those recessionary conditions -- are we seeing an overhang of excesses that are in the process of being toppled? if not, i agree with everything you are saying. those are just not the things based on our work that caused severe pullbacks. that is a we are talking about with the 20% move. david: global growth is negative since the first time since 2009. that is huge. we a

. >> realistically having spent 20 years in the financial market a lot of it in charge of merrill lynch's foreign exchange business globally i'm skeptical about intervention. it's not my call. it's up to the reserve bank but history tells you it's not a successful strategy. it sort of works if you're at an extreme point but if you're trying to buck a trend, in my opinion it doesn't work well. so it's not just that that's strong. new zealand against the euro is very very strong qe euro. we see the u.s. economy being much stronger over the next few years. we're quite bullish about the u.s. so i think janet yellen will start raising rates. you will actually see the rate might come off on the back of different circumstances in the united states. >> that was new zealand's prime minister speaking to matt taylor. still to come on the show the world's best golfers are in augusta georgia for the first major tournament of the year. it's the masters. they're hoping to hit an ace or hole in one like jack nicholas did this week. we explore the money behind the brands of elite golfers like tiger and ro

bank of america, mink, however, -- merrill lynch however, is a substantive core and say you should buyth a target up to 124. let's pop these up here for you. up to a target of 124.59. don't forget the .9. with a target level up 128. will we have enough room on the screen? yes. 45. that's the target. bank of america. merrill, in the very, very near term. so if you want to be long, that's where you want to be long. mark: manus is just showing off today. top stories on bloomberg this hour. novartis reporting first quarter profit that beat. the company begins to benefit from excessive asset swap transactions. that make it smaller. and more profitable. core operating income climbed 9% in the quarter. chinese manufacturing gauge fell to a 12-month low in april. to just -- that efforts to cushion the slowdown are yet to revive the nation's factories. the e.c.b. doubled emergency funding for greek banks. as a deal for the country remains elusive, and the central bank raising the cap by 1.5 billion euros. this brings greek bank cash buffers to 2.9 billion euros. according to a person familiar.

metal strategist at merrill lynch global research. have you on. >> a fire that broke out left at least four workers dead and two critically injured on wednesday. a mechanical problem is believed to have caused the explosion. mexico's state run firm managed to overt any significant spill and the accident is expected to have minimal impact on production. >> a russian trawler has sunk in the western pacific ocean killing at least 54 crew members. around 15 people are still missing after 63 were rescued by emergency services. reports say drifting ice may have caused that disaster. >> california is in the midst of a historic drought and they called on them to cut their water usage by 25%. >> as we enter our fourth year of drought these conditions are symbolic all across the west. we're in the middle of the rainy season. mountains should be lush with green and instead they're bone dry. today we're at the bottom of a reservoir. we should be 30 feet under water here. instead, these are the conditions. this is why california is in a state of e

. >> let's bring in jennifer veil and savita at bank of america merrill lynch.up stan fischer's comments to me yesterday, i would say the leaning was that he is itching toward an interest rate increase. bushing off what he called poor data in the first quarter and looking forward to better inflation numbers and better numbers on the economy and higher interest rates. do you think that is spooking the markets here? >> i'm not sure what is spooking the markets today. earnings have been off to a decent start. the fed call is tough to make. we think september. with some of the data coming in softer, there are risks to the fed actually hiking this year or pushing that out a little further. i think we are in for a rocky road. we had volatility all year. i think we are going to have it the rest of the year. i do think the market hits a better place by december. we are still looking for 2200 on the s&p by year end. on a daily basis, we need to get used to volatility. >> jennifer wondering if all these factors prove temporary and an excuse to sell in what has been a soli

bank of america, merrill lynch reinstating coverage of a $66 target.t's 40% implied up side injectable facial animal fat. >> you take a look -- >> yum, yum. >> well i mean -- well wait until you hear what that drug does, brian. last month in march it got unanimous fda approval for this drug, which is an injectable treatment for? double chins. that's what it's for. double chins. sflo they're using -- they obviously do not put double chin in their press release. >> i learned two things today zoosh can you go home now, brian. >> just a minute. >> 24 minutes. >> yeah. >> melissa, thank you very much. all right. for street talk that's it. >> how many members are considering a june rate hike and looking past q1 weakness basically counting on q2 to come back. if that's true the thesis is that q2 u.s. recovery u.s. economy starts to pick up momentum. then fomc does move towards normalization, and the euro goes to parody definitely. sfroo all right. dave, let's talk about the euro weakness. whether or not we go to parody or still at $1.05, it's lower than it wa

let's bring in the head of global commodities at bank of america merrill lynch. see you again. >> good morning. >> we've got the saudis doing their move. and then we've got some lower than expected forecasts on inventories. why is the action on crude down and not up in your view? >> well look i think the market is a little bit jittery still as it relates to the specifics of the iran deal. i do think the deal is generally quite bearish for prices over the next 18 months or so. the other issue that's got the market moving is the u.s. dollar. as you know, after a few months of dollar strength the market seems to have reversed and we've seen the euro dollar breaking 110 to the upside. so i think those two factors, kind of the macro factors, the dollar weakness and the iran deal, how long it's going to take to get the iran deal done, are pushing the market up a little bit. >> you know, it was a brutal earnings quarter last quarter for the big energy firms. now we're on the brink of another one. how bad is it going to be? what are you hoping to learn from these compani

you can buy it at merrill lynch for $25,000.rivate equity funds, a diverse group, that institutions do. >> would you be in favor, though, of lowering that threshold of $25,000? i ask that because you're certainly not the only ones trying to go beyond the ultra hitch. there's carlyle, blackstone, trying to reach out to the individual investor. but even at $25,000, a lot of people would be locked out from that. >> this is the first fund that's been publicly registered. so this is historic. and it's available for regulatory reasons, to accredited investor, investors with $1 million net worth. we thought $25,000 was a reasonable minimum and we think the portfolio offers diverse access to kkr private equity. so we thought that was a good figure. >> how do i know what i'm actually investing in? when i buy your fund which goes into the various funds at kkr, who do i know about what the underlying assets of those funds are? >> you'll have the same information that any other kkr investor has with the 10ks they file. we'll disclose the ho

for more reaction to all of this fed talk let's bring in michael hanson bank of america, merrill lynch does seem to be the message of the fed right now that we're itching to raise interest rates but don't get too excited or too worried about it because it's going to be measured. it's going to be quote, shallow, and nothing very quick. is that the right take away? >> i think that at this point. i think that the fed has come to the conclusion that conditions are going to be good enough that they can do liftoff. that if give enough guidance to the market, enough forewarning, there won't be that big of a reaction. given the chad chul nature of the recovery they're going to go show. you had yellen say that as well as dudley moore recently. and so their view is start soon but take our time. >> they also said though and dudley just said this in his discussion, that it's a big uncertainty how markets will react to the first interest rate hike. is the federal reserve too worried about market reaction in order to make this move of liftoff? is that why there's so much talk leading up to it? >> i

according to bank of america/merrill lynch, 44% of active managers have outperformed their indexes thisr, so it's still not quite 50%, but it's better by multiples what we've seen in the last couple years, so be very interesting to see how that debitde debate plays out. >> etfs and some of these particular strategies may be hot but barron's touting the return of some mutual funds. when was the last time we saw the magellan fund on the cover? >> joining us is mark martiak. mark welcome back. >> thank you for having me bill. hello, kelly, good afternoon. >> we all know as jeff pointed out, actively managed has lagged in this up market. do you think that's about to change? >> i do. in a transitional market like this in an uncertain interest rate environment, i believe it makes sense to actively construct a portfolio where research-driven manager takes advantage of good stock picking and i think it's important in certain asset classes like municipal bonds, any fixed income, emerging markets -- >> mark -- >> there are a asset classes where it pays off. >> it comes down to mutual funds versus

joining us is the chief european economists at bank of america merrill lynch. good to have you here. >> good morning. >> i don't know if you've seen the wall street journal today. the lead editorial is the case for letting greece go. do you agree? >> no i don't. >> why? >> i think it's not worth it. i think that it would still be fairly complicated to control the consequences of this. it's probably not as bad as one or two years ago because we have more instruments to deal with that but it's a risk that is not worth taking. >> they acknowledge there are risks. it would be complicated and devastating to greece but the cost of keeping them in is what is too high because it could unralph unravel reforms. >> it depends on what we end up with in greece. if you look at what's the strength of both parties there, he had one chance to really get concessions from the europeans. it was so elicit so much that this has failed. fortunately for europe qe came before the greek elections. the greek government will probably accept quite a lot of where we used to be the program.