. >> in the merrill lynch cases i talked about in the book i actually represented one of the merrill lynch representatives from wall street who like all of andelieve in our system thought for sure he could tell the truth to the grand jury and everyone would understand what he had done. instead he was sent to prison for a year with the judge saying i understand you were just doing your job that day. indictment dide not state a federal defense. the government had hidden evidence that showed he was innocent. it was so that he yellow highlighted the in the -- yellow highlighted the incidents before the trial. it was only by accident through a third team of prosecutors giving me a disk they didn't you have if highlighting on it that we found the evidence after six years. >> they literally had a roadmap of the evidence they should have turned over and didn't. and by mistake they put it in sydney's very capable hands. david you have been in this movement a long time. seen we have tussles politically. have you ever seen it so bad where we have the government focusing criminally on our people?

are supposed to have partiality, but there's no evidence that in the wake of what we saw with merrill lynch, and others being the big kahuna, that the enormous conglomerates have the right side and if one were to fail my neck, like goldman sachs, that could take down the entire economy. just at jpmorgan chase, back in the day, jpmorgan was jpmorgan, chase was his, but now j.p. washingtone was the radiant, and if you open to recording of everything that is jpmorgan, by the way, donald trump keeps quoting jamie dimon and you could ask jamie, i am taking down these measures are w the. frank act, and he would save it is hard. you look at wells fargo's, it is -- it is wells fargo walkover via, you look at bank of america, merrill lynch, and there are various places and you can see how many different subsidiaries are under these things, these mega-regional banks are not affected and multinational. host: another tweet, if the economy is so great, or interest rates so low? adding maybe because she many is -- maybe because cheap money is driving the fake market. guest: we had never seen were interes

this bullieves in market strategy from merrill lynch. was giving us updates on washington. why are the equity markets immune to what i see on the cover of the newspapers? : they are immune for now. if we do not get this by may or june, we will see the markets outflows, butlow to make him it will still be a buying opportunity because of we do not do corporate tax reform now order the policy initiatives, it is not going to happen. tom: let me get out of the way here. it is 6:08 a.m. wall street time. should i shall stocks? joseph: no if you. are holding good, large-cap dr's,s, some good 8a just stay put. europe, of course, here we go again. there is another problem with italy and spain. ride that out. earnings are good. don't sell stocks, just stay put or add incrementally. francine: investors are looking for details on these economic plans when trump addresses congress next week. if the president disappoints, are we going to see a correction? joseph: not a correction, francine, not that dramatic. perhaps they pull back. investors, and man

paul: merrill lynch bank of america impressed by yesterday's production report.debt could be reduced to $4 billion by the first half and the company may be debt free in four years, big turnaround from where we were a couple of years ago. bank of america estimating that fortescue could generate $200 million per month based on an iron ore price of $60 per ton. those costs have been coming down, so bank of america merrill lynch raising fortescue to a buy. it looks like a pretty justified call. much.d: thank you very after the boj decision to stay on hold, the focus shifts to the fed and whether president donald ddow itsll over sha policy meeting. , theme about this debate initial decisions influencing the fed here. is all these decisions creating uncertainty. the federal reserve and the markets initially said if we are going to guess in a direction in terms of upside or downside risks, it's going to be upside. immigration control, this is unsettling, companies around the world, so you have to wonder if maybe there is a negative impact when it comes to business decis

positive statements have been made about it by bank of america, merrill lynch and morgan stanley. and 65% of trump voters say we should keep that rule in place. it is time we stop the greatest bait and switch in american history. it is time to make sure that trump governs like he campaigns. senator greene: thank you. i understand you are the ranking member now but he will always be madame to me. i say sincerely that she will always be madam speaker to me. friends, and a world with alternative facts, it is sometimes difficult to know the truth. the ultimate truth that can set you free. it is sometimes difficult understand that carlisle is right. it is sometimes difficult to know the that william cullen bryant is right. so please allow me to share a few truths with you. at the genesis of this crisis, several events took place. that were absolutely striking. you may recall that the stock market fell 778 points one evening. you may recall that we had to come back and we had to take another vote. you might recall that banks were not lending to each other because the crisis was so dire.

bank of america merrill lynch says what?lking about it. he is talking about the central bank as the third unofficial mandate or he is right. the other thing we were discussing earlier was the trump later that is a very powerful force in the market. if you think there will be a iset, that says stimulus coming, just get out of the way, it makes sense. you mentioned short the markets. there is a difference between price volatility and playing the inflection point. what is it saying to you right now? ton of downside support for the market heard there is a lot of money that has not gotten fully positioned into the markets here. i think there is for a much a buy and dip mentality that has worked out through the election. david: dan, why isn't it saving at this point? if you look at the tweets, you get immediate drop in stock, but then it comes right back up again, so the marketsif you loou get immediate drop in stock, but then it comes right back up again, so the markets -- what is in the market look and say, "you know what, it is

in an exclusive interview the chief investment strategist of bank of america and merrill lynch describesancial ground is shifting under our feet. michael hartnett is next on consuelo mack "wealthtrack." >>> new york life along with mainstay's family of mutual funds offers investment and retirement solutions so you can help your clients keep good going. >> additional funding provided by

they want to cross sell, one of the big problems bank of america encountered with the merrill lynch acquisition. that is frustrating. i would like to have -- thursday leave a 60-year-old a career it is likequent, but the time were up and i don't get the impression there are many banks that anymore. there have been these irresistible urges for them to sell out and marriage. host: our guest is coming out this fall. when will it be released? guest: coming out in november and we will debut at the miami book fair. host: we will carry that book fair, so we will look for that. check out our book coverage every weekend on c-span two book tv and today's "in-depth." you can get more information on www.c-span.org. david, florida, good morning. caller: good morning. i would like to say something. cavaliersent his attitude, especially his comments about the lawnmower job that he is talking about. there's lawnmower job is important to the individual american. it pays his mortgage and his family. americans are really getting paychecksending their to mexico and other countries. realized by the upper classes of

. >> some big firms like merrill lynch are already complying with this rule and sound like they're not going to reverse so why shouldn't the rest of the industry do it, too? >> we started working with our members to work towards compliance even if we have issues with it because we're a highly regulated industry and we have to comply with the rules. we think there's a better way to do it. to be honest, christine and i obviously disagree on this, but we're seeing where firms are now saying to come into compliance with this rule, we're going to limit the use of mutual funds, force you to be in a higher cost managed account because we don't want to take on the additional legal liability that's associated with it. we don't think that makes sense. we think that there's a better way to do it. >> christina, even if this doesn't go forward at the government level, this rule, are the changes you're talking about already taking place in the marketplace? >> they are already taking place, and i think that anyone who does not care to offer their clients advice in the best interests of people saving

i did go down to merrill lynch.d this woman put me in this little room to wait. about -- there were a couple of guys in there already and they got called up. three or four came in after me. these guys were all really fat. and they kept getting called in ahead of me. i finally decided merrill lynch had some minimum weight requirement so i left. if they called me in earlier i might be working for merrill lynch today. i got tired of all these fat guys. i thought i must be at a pro football tryout or something. i only weighed about 135 or 140 pounds. i decided there was some requirement at merrill they hadn't told me about. >> oh, how different you life might have been. >> different. >> you keep talking about the 10 guys, maybe, 10 people maybe you've seen that could outperform. is there anybody actively managing money today who investors can still get in with in that group of people? >> i'm sure there are. they will only be effective in all likelihood with fairly modest sums of money. >> the reason i keep coming back t

graphic is inspired by this note that came out of bank of america merrill lynch.talk about the popular trades right now. saying is that when you look at hong kong -- at how call on the markets are, it seems we are not really pricing in the sort of risk that might come to for asian at this point this year. they are saying the cheapest trades, you go along a lot of these things. that is a very telling chart that we are at historic lows when it comes to how confident the price of protection that markets don't seem to be pricing in at the moment. yvonne: in terms of specific stocks that you're watching, you are watching chinese property shares today. why's that? reporter: that's right. there is a great story on the bloomberg that comes out top one or two on your terminal. the reason i am watching this is that when you look at how pessimistic the market has become over this group of shares , this is a two-year look at this peer group from bloomberg intelligence, it seems that these stocks are too cheap. the likes of goldman and city have all come out and said there mig

in white, the merrill lynch global index which is more comprehensive. we see the uncertainty index is now at an all-time record high while the market risk indexes near the lows. at some point you have to think that there will be a re-convergence as it suggests the market risks will climb and meet that uncertainty. it's an interesting divergence between what's happening in the real world and what's happening with investors. investors are focusing the possibility the president trump's policies will be stimulative to the economy and ultimately to the corporate profit outlook. mixed trading action for stocks today. we are looking at a tad more risk off with gold trading slightly lower. x is higher. assets, thefe haven yen and the 10 year yield are retreating in the direction of a rally. the dollar is dropping against the safe haven yen and the tenure yield dropped by one basis point as bonds rally slightly. vonnie: we just cannot get out of that range, thank you. let's check in on first word news. trumpey: the administration's plans for a round of millions

he is it bank of america merrill lynch. do not miss our coverage of chair yellen's coverage of her -- testimony to congress. vonnie: it should be interesting. let's get to first word news. orkney: president trump meets with justin trudeau put a. northl renegotiate the american free trade agreement and it could disrupt half a trillion dollars in trade between the countries. the two leaders will hold a news conference at 2:00 eastern. you can watch it right here on bloomberg television. thezo abe says he thinks u.s. approach to north korea will be stricter under president trump. he spoke in an interview after returning to japan. over the weekend, north korea testfired another ballistic missile. trump will consider all options in dealing with the matter. in south korea, a prosecutor questioned the billionaire executive over corruption allegations. he is the de facto head of samsung. he is accused of taking part in payments that samsung made to a close friend of the south korean president. in romania, there is a demonstration.

at merrill lynch, we've always expressed bullishness. >> you're bullish on america. >> absolutely. >>t slogan back. >> we're bullish right now. i just got off the road meeting with about 2,000 merrill lynch financial advisers in six or seven cities. what they're hearing from their clients is very bullish right now, especially clients who are small business owners. the expansion is under way. they see deregulation in the offing. they think tax reform is coming. they're thinking about investing in their businesses. that is a stirring that is happening out there. i think at the same time, they're not exuberant about markets. so you take that and put it together and that's a bull case from our perspective. >> even your logo is a bull. you know what, it's an anatomically correct bull. have you ever noticed that? >> sure. >> that's a male cow. >> absolutely. well, you'll remember the thundering herds. >> i always thought it was kind of funny they actually -- it's a drawing. this is a bull, andrew. have you looked? it's a bull. >> i haven't paid attention to that part. >> we are proud. it's

facebook was added to bank of america merrill lynch's list of top investment ideas.hey are setting the potential for multiple expansion. twitter not getting as much of a boost. it had been up as much as 3% after it was upgraded from buy to neutral. seeing a boost from the twitter president as he called it in his note. looking at the bond market, we have a fourth straight day of lower yields. let's look at the bloomberg, shall we? we see the dollar fall. this is the fourth straight day that we have seen treasury yields fall and the united states. that is the longest stretch we have had since early june. mark: i remember that well. and yields are falling stocks are falling as well with bonds rising. we are down for the second day. earlier we were up as much as 6/10 of 1% on the stoxx 600. we have been stuck in this eight point range coul. let's talk about rio tinto. it is going to pay much higher dividends than expected. it is want to pay back $500 million of shares when the second biggest mining company reported better-than-expected earnings. prices -- irond ore price

this is merrill lynch. the index is in white, measure of the perceived risk in the market. indexobal economic policy in blue. you are saying a big divergence between these two. answerf perceived global to, but not market risk in this environment, which is interesting. another thing we have noticed, even though we have bond yields down a little bit at a -- today, they have been rising, particularly spurred by yesterday's data and bottoming around the fed meeting and going into janet yellen's testimony over the past couple of days. yields have an strengthening on the view the fed is going to raise rates two or three times this year. at the same time, the dollar am at which in theory should be rising, has not been. it has been trending lower all year. fx traders are telling bloomberg there is still some concern about global policy risk there. that is being priced into some degree to the dollar, but does not appear to be reflected with the yields in the united states. day, down for the first the longest right since july 2015, yesterday we closed at the highest level since decem

but i haven't heard from them in a couple of weeks and in that period of time we had lehman, merrill lynch, and right in that 24 hour period, aig, when the fed was going to bail them out for $80 billion which we didn't know they had or could do. but nonetheless, i looked at my watch. it was 3:00 in the afternoon and i didn't want to be rude but i said mr. secretary, i am meeting here with my leadership, i have not heard from you, could you come in tomorrow morning at 9:00 and brief the whole leadership, not just me, on how you see things because we don't want to make any statements that might lessen confidence in the market. we don't want to say the wrong thing. but what is going on? do you know what he said? madam speaker, tomorrow morning will be too late. which i said, why am i calling you, not you calling me? because the white house did not want congress to know. they were hoping they could ride this thing out until the election, which they knew would be a good chance was barack obama. the meltdown would occur. and they were relieved of their responsibility. but they were responsible i

research of bank of america merrill lynch. >> we have a theme song for him. >> you were expecting thisever since you got the ph.d. you've heard this, have you not? >> joe is going to serenade you with it. >> we don't call many ph.d.s doctor. >> in this case we'll make an excepti exception. >> unless you can remove a gallbladder, we're not calling you doctor. in your case we're making an exception. >> welcome, david. great to see you.

the merrill lynch's of the world. mother merrill will bear the biggest burden of these costs.interesting thing is as an investor you get clear winners and losers so you can place -- it is easier to place bets when you have something like this in your news flow. the outcome is binary. -- who do you think will be the winners if donald trump is able to be reverses legislation? the bigger ones had in an advantage. smallerto closure of firms. it will probably give more choice to investors which is good for consumers. have more to pick your advisor from. they will probably make more money than at this time. consumer point of view and you will have more choices. that is but i think about. guy: increasingly the speakers i speak to are telling us that effectively the fight is not is with new york. it is been interesting to hear them talk about this with berkeley. that is where the fight really lies. if the regulatory burden is going to become easier in new york, is london going to lose out? reporter: you're right because the fight is between london and new york and whoever has less bur

maria: merrill lynch takes you to -- we will continue the study on how it is that you have this masterfulcs background and sports most importantly, right back, stay with us. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™ liberty mutual insurance moglia. >>>. >>>. maria: do i love to travel hate bad airline service, points guy.com 3 1/2 million visitors per month leading resource for travel news joining me points guy off the top of your head ceo brian kelly good to see you. thank you for joining us our audience needs this advice you put out a report of the best and worst airlines give it to us. >> basically we wanted to a stake you in other airlines are often judged by shareholders investors, and we want to looks at it, strictly from th

and not to be outdone bank of america and merrill lynch are offering customers admission to all kindseekend saturday and sunday. and then finally we thought this was a really great freebie you should know about. a service called infancy offers free comprehensive eye and vision test for all infants for the first year of life no insurance needed. all these freebies on 6abc.com. have a great weekend. >> you too. that will do it for "action news" at 4:00 for sharrie williams alicia vitarelli adam joseph and little charlotte, i'm brian taff. hope you'll join me along with sharrie adam and ducis rodgers tonight and every night for a full hour of "action news" at 10:00 on phl 17. >> now here are rick williams and monica malpass with a look at what's ahead at 5:00 hi, guys. >> hi there. >> thank. >> you coming up an emotional day in delaware after that deadly prison takeover in smyrna. the big honor for the prison worker who was killed now being hailed by his colleagues as a hero. plus the act of terror foiled by police outside one of paris' busiest tourist hot spots. >> also new developments

we're not done with another round of heavy rain expected to merrill lynch in before all of this wraps up. we'll talk about the time line, get a look at what's happening in the sierra coming up in the micro climate forecast. >>> quarter to 12:00 right now, we're in a micro climate weather alert. at some point we're going to give that radar a breather. that point is not right now. >> it's in the distant future, is it not, kari? >> yeah, it won't be until this weekend when we'll be completely done with all of this rain for at least a couple of days. as we continue on our micro climate weather alert, the golden gate bridge is in there somewhere. and, of kwoecourse, sam and i w tacking about this earlier, doesn't matter what the weather will be like, there will always be tourists out there trying to take some pictures. here's a live look outside fremont. getting a chance to dry out on some of those roadways with some lighter showers moving in. here's a look at concord. look at how warm it is. and i can see the standing water right there on the side of the roadway. so, dealing with some sta

bank of america merrill lynch saying, you do not want to underestimate the dutch elections and the feds cody to tightening -- said's proclivity for tightening. fed's proclivity for tightening. the ceo joins us and he talked about global diversification and getting through. they all say that in the front. let us see what they say when the results passed through on march 15. guy. guy: manus. thank you very much indeed. in terms of the rotation we are seeing this morning, miners generally on offer today, so they had been welded over the last few sessions. you have some of the other names softening up a bit. what is interesting is that if we move to the other side of the are tradinge higher. copper is actually reasonably bid today.y -- well maybe some diversity disparity within these moves. anglo american trading down by 2.09%. matt. matt: yeah, we are just getting news about a story you brought up in the morning. toshiba is going to hold a news conference at 6:30 p.m. today. i am assuming that is local time. the company says it is incredibly sorry about extending or asking for an extension

jon: joining us now to discuss this is bank of america merrill lynch head of u.s.gies. still with us, steve rattner. mark, let's begin with you. on the program this morning, over the last week, what have you learned? >> we have learned that the fed is more optimistic on the outlook. they are pleased with some of the progress they have seen on the employment side and more recently on the inflation side. we think that is giving the fed confidence to believe it will be able to hike later this year. it seems like the fed wanted a little bit of optimality for march. the data flow continues to be strong. more than anything, they wanted to reiterate that they think it could be appropriate to raise rates later this year. jon: i could have told you that last week before she went in front of congress so i want to understand what we got out of this week. the other thing in the room is the fiscal stimulus package. what are the questions left on the table that you want answered? >> any clarity on the fiscal stimulus side would be greatly appreciated. also, for the fed. i think

in the globalring head of rates research at bank of america merrill lynch.t me ask you bluntly how much you care about this meeting. mike seemed to downplay it a little bit. is it going to move markets? .> it might i think we are still underpricing probabilities for march if we get a good deal, we will get support, and if we get a good labor market report at the end of this week, the march probabilities could be higher. a strongt will send signal. what we get is small tweaks in in theguage that -- prepared statement, and what i find interesting though, is that if you look at yellen's speeches from a couple of weeks ago, they continue to make the case for a few rate hikes, which is more than what we are currently pricing in and they make on the basis of the current outlook without taking into the account the fiscal stimulus we are waiting for. come so, if they do through on that promise with more rate hikes than your pricing in, is there a possibility they will ever move rates at a meeting when there is no press conference, because we have kind of been led to

research of bank of america merrill lynch. >> we have a theme song for him. >> you were expecting this, david. >> ever since you got the ph.d. you've heard this, have you not? >> joe is going to serenade you with it. >> we don't call many ph.d.s doctor. >> in this case we'll make an excepti exception. >> unless you can remove a gallbladder, we're not calling you doctor. in your case we're making an exception. >> welcome, david. great to see you. >>> the u.s. equity futures, markets were up again yesterday. new highs once again friday for the s&p 500, the dow, and the nass being da. the dow up by 1% last week. the nasdaq up by 1.2%. in fact, the s&p 500 has set its fifth record of the year and the benchmark index is to cross $20 trillion for the first time ever today. >> time for the don't chase the rally. today, i think. >> probably. >> i think the journal had that piece. >> we have santelli coming on. >> "the journal" has something similar. >> perfect. i like it. every november 9th it started, 10th, 11th, 12th a don't chase the rally. we'll try it again. every time we hit a new top, t

i can america/merrill lynch says this is pushing equities higher. broadening participation in u.s. stocks? when you start having more retail coming into asset classes, one can argue there are slightly higher valuations. run ins still room to certain parts of the equity market and depending on which sectors those funds play into, there can be room to run. the two big themes for u.s. equities are value over growth and financials outperforming the more defensive bond proxies. if you look at the return expectations for those sectors, we see them being strong and no alarm bells in the selective plays for u.s. equities. what kind of rotation do you see taking place as we go through 2017? it's a big week for the banking sector in europe and there is news flow around the unilever. which are the sectors that moved to the top for you? >> for the u.s., it is the energy or anything that has been counted in the past year like energy. any kind of value stocks that can provide returns in the near term and rising inflation environment, we do financials in , a highe

she is head of japan economic that merrill lynch japan securities.reacting to the japanese fourth-quarter numbers. a slowdown, down to 1%. the economists are pretty spot on with these numbers. in terms of how the futures have traded, we have moved a bit higher here. 25. at nikkei to is up now 2.5%. the yen here, the dollar strengthening and is now at 113.96 against the yen. perhaps there is no downside surprise here. we will be back. ♪ >> japan is still struggling to revive its economy, fourth-quarter gdp numbers below as to men's. >> north korea called its foristic missile test success as president trump and shinzo of a reinforcing their alliance. facing allegations on bribery. >> australia's biggest gold mine are reaping rewards on higher prices and volumes. >> this is the second hour of "daybreak: asia" live from bloomberg's u.s. and asian headquarters. is just after 7:00 p.m. in new york. i am betty liu. we just had japan fourth-quarter gdp numbers, a slowdown as expected for the fourth quarter, but in line with what economists had estimated. we

. >> karen kimbro head of strategy at merrill lynch management and commonwealth financial network cio. good to have you both with us today. karen, i begin with you. new highs for stocks. they moved even higher after we witnessed the prime minister at the news conference. how much credit do we give to donald trump we have this announcement with trump and abe. foreign trade relationship is a little bit more solidified, going in a positive direction. >> isn't it the other way around? this is a trump rally, is it t not. >> it's not a trump rally. take trump completely out of the picture. earnings starting to grow. earnings accelerating, doing better than expected. stocks are going up because baus things are getting better and you have the possibility as uncertainty recedes for people to feel more confident. we have a potential double whammy. >> the reason stocks started going up is because donald trump got elected and people like his policy. it's undeniable, is it not? >> november 9th it happened. >> in the wee hours i might add. >> i don't agree with that. just a fact there's a clear res

that is michelle meyer of bank of america merrill lynch.rder tax could affect the retail sector? this is bloomberg. ♪ >> this is bloomberg daybreak. this is the enterprise greenroom. coming up, oppenheimer funds cio joins us. jon: from new york city, i'm jonathan ferro. it is bloomberg daybreak good about 50 minutes away from the open. all the ingredients for a little bit of risk off. equities lower a quarter of 1%. switch up the board. elsewhere, treasuries well bid. it is that screaming risk signal which is dollar-yen. the yen is stronger. we did breach the 112. treasuries fared a stronger yellen. equities lower. as you cross the asset checks, let's eat you some headlines with emma chandra. there is a report for the disney ceo to increase his 10 year. tenure.crease his jeta's first only passenger will make its maiden flight in the first half of this year according to chinese state media. it was originally due to fly two years ago, but it was played by manufacturing problems. the chinese plane is designed to compete with the boeing 737. th

ask around, i think you had maybe it was on "squawk box" they had a gentleman in, manager from merrill lyncht how their clients were responding. and he said that there was not yet universal but growing belief among the clients that things are going to begin to work much better for business and much better for the economy. so people therefore are ready to buy more and do more things. so that translated into some of the numbers we're see thag are rather helpful. >> for now the bear argument that investors that this makes it less likely we'll see the pro growth reform with all this distraction and noise from flynn's resignation and more. it's not filtering through. for now, art, thank you. >> my pleasure. >> art cashin of ubs. >> when we come back, israeli prime minister netanyahu getting ready to meet with president trump at the white house. we're going to discuss what is at stake with former deputy seg te secretary of state. we've got a lot more including yellen's second day on the hill. we'll monitor that and take you there live when necessary. ♪ tarmply imss tre strie v dares les to go beyo

maria: we had a guest on earlier, keith banks from merrill lynch and u.s. to see double digit earnings growth in 2017 without tax reform, but he thinks that tax reform hits in 2018 which will increase earnings that much more. quick on this question, because i want to move on to the veteran federal attorney, alexander acosta, do you think that tax reform happens in 17 or 18? >> that's a very good question because pass you listen to the speaker and others, this is going to take a good part of a year. it's either going to happen the end of 17 or the beginning of 18 and you know, there might be some advantages one way or the other. maria: and then the question is, is it retroactive to the beginning of 17? >> if you stay at the table and get to the end you'll be a part of making decision. maria: so president trump has chosen veteran attorney alexandria acosta. and we know that puzder says i'm not going to put myself through this anymore. and acosta is expected to go more smoothly. do you think this is a better choice? >> i believe it's an easy confirmation. he's

joining us is bank of america merrill lynch g10 fx strategist. great to have you.that contract a few words in the president and is it enough? >> i think so. i think one of the reasons the dollar came off as people were less certain about the timeframe for the fiscal reform. there was more trade rhetoric, aggressive trade rhetoric, obviously talking down the u.s. dollar, so i think now that we see summary focus on fiscal reform, getting some sense that that could and would happen this year, i think markets are getting more comfortable playing those trump trades with higher rates entire u.s. dollar. paranoia,saving the there has been a paranoia around bullishness and says all of that good stuff but not come. do you bite the paranoia when we get a pullback? we do. it is tricky from a short-term to do that because you have had periods where it is persistent. we think the market is way too pessimistic with respect to growth positive aspects of trump fiscal policy and tax reform. that he has signaled a softer stance on trade tensions of mexico in china following the init

joining us is the bankamerica merrill lynch director -- of dodd-frankew is widely expected, what canbout this by the cheery rule, affecting not thanks or financial services, brokerage. >> telling people where they should be putting their pension money and the objections to that role, it would restrict the range of products available to retirees for what they can do with their money. on the face of it, you would expect financial advisors to act and their clients interest. ,his has been widely criticized we have said they -- there is flaws in the way this has been approached and clearly the overhaul trump is planning on financial regulation -- the volcker rule is the big question, whether -- talking to european banks, they are afraid of this because the u.s. banks get more freedom at the same time as regulation is increasing in europe, the level playing asld, which is are releasing on level by european banks both tilted and more favor of the u.s. banks. francine: how do you square populism measures with the egulation. -- der >> down to big business is not how trump was elected but at t

up, head ofng global commodity and research is bank of america at merrill lynch.tarlet: we're live at bloomberg headquarters in new york. plus covering stories in washington, massachusetts and london. there goes the rally. after record levels, equities are pulling back. still holding on to their advantage. gold.l look at the texan -- his contention like this a sign of things to come for health care and financial reform? -- pump thel post most crude since 1970. blanche joins us in today's commodity close. u.s. markets close in two hours. let's get a check on where things are headed. we are still up, but certainly a long way down. >> averages touching record highs today. little change, especially for the s&p 500 which is experiencing push and pull in today's section. let's talk about the push and pull. tobacco companies, philip morris, up. both companies have been making inroads in that area. variouslso watching beverage companies from none.lics -- alcohol to pastimproving over the four weeks while pepsi did not. so three are trading higher that is on the plus side.

the white line is that bank of america merrill lynch market risk index.ly, a volatility gige covering commodities, currencies, bonds. see, -.37. lower than a was few years. signs of volatility across the main market gauges. the blue line is the global economic policy uncertainty index, which is at a record high. while volatility remains low, economic policy and -- uncertainty is at record levels. a lot of political risk out there as we talk about day in, day out on bloomberg television. donald trump's new administration, european elections, big button issues. the u.s. volatility gauge has been muted. this is the white line on this chart. the blue line on this chart, rather. this goes back a year. why is it muted? stocks are essentially moving different directions under donald trump, suppressing real-life volatility and that is where the index volatility. the index is the white line, buying protection against more dramatic moves in the snp. you can see, investors seemed to be concerned about tail risks. hedge, being used as a money has been pouring into ex

it was added to the number one list on merrill lynch.y gaining today, but tech is a top sector on the year, up about 7%. the next sector is materials, up about 3%, so by a wide margin. not surprisingly -- this is the s&p 500 tech sector chart, and it has recovered to levels last seen in august of 2001. quite a recovery here over the last more than a decade. finally, this leads us to our chart of the day, and this is in the bloomberg. index'sthe s&p 500 tech p/e,elative to the s&p 500 and we see that tech is very pricey, well above the five-year average, hitting peaks last seen in play 14 and 2012. there was a bit of a correction in the spring of 2012 and a correction in october of 2014. so perhaps the fact that we are well above that five-year berage suggests there could a contraction overhead. it is a good chart to keep in mind. julie: facebook shares are trading at a record today. vonnie: interesting. thank you, abigail doolittle. twitter is trading today after an analyst upgraded the stock to buy from neutral, noting the "twitter pres

. >> you are also going to see work we have done with merrill lynch has been showing think about howra years. >> how do you pay nor if you weren't planning entire life to live beyond 100, you were 80, 90, 100 beyond out of cash. >> thank you -- we are living he longer, and when we talk about money in the abstract, much do i theyed in the bank people can't relate to it but in our study, we identified that clients want to think how they live lives what are priorities, so health priority, working maybe after retirement about priority, what kind of homes live in a priority if you talk to clients, in terms of those priorities, all of a sudden they come alive can i make course correction, so in terms of topic relatable years than how much money in bank. >> you consider you may need health care as you -- age, you may need someone to live with you so you will need more money to support your existing sxhiment. >> absolutely, and in terms of priorities, the number one concern no surprise is health, health is number one, people really think about when i plan for retirement longer life, thinking

bank of america merrill lynch head of global economics.york city, this is "bloomberg daybreak." let's get a check of the markets, 41 minutes away from the cash open. futures are higher. four-day losing streak on the dow and we are up. setting the tone is this blowout number from the adp report, coming in at 246,000, after the forecast of 168,000. a big tick higher and the most in seven months. you have to go back to june of last year for a number this solid. if you switch up the board, here is the read across the other asset classes. basis points. just getting confirmation from the treasury that we will get $62 billion in notes and bonds next week. a low supply coming next week. the fx markets. dollar stronger most across the board, with the exception of sterling, on this fed decision day. david: we are now going to turn to a very busy man, the eli lilly ceo, dave ricks. he started the day yesterday with the announcement of his company's earnings before meeting with president trump and other leaders in the pharmaceutical industry. the pres

he drew on a note from the chief investment strategist at bank of america merrill lynch who basically volatility. if you have rising gold prices and higher bond yields, that can foreshadow stock market slumps. interest in perspective as we see gold rise by 1%. and bond yields are not exactly cooperating with that scenario. yields,eeing a drop in the lowest of the session down six basis points at 2.41% today. that is helping put pressure on groups like financials. we also saw a earnings and earnings related news to contend with, tyson food came out with record earnings, but the company said the securities exchange commission is investigating price-fixing allegations in the chicken industry, and said -- sent the company a subpoena. sysco matching estimates. its acquisition of a company from bain capital will modestly heard earnings per share in the third quarter. earnings-per-share in the third quarter. also moving down, crude oil prices. we dig more in that in the commodity close about 30 minutes. chesapeake and transocean are taking a hit. this is the biggest declining group within th

>> according to bank of america merrill lynch, underweight.e viewed as pro-bank, that could result in further share gains. theher you think evaluations are stretched or any of that, there is good evidence to show people are so underweight, there still could theseey to pull back into things. >> let's talk about banks and the expectation for rates. he said he still sees rate hikes. we have got yellen. we figure out whether or not some of these inflation sensitive sectors will move based on the fed or whether they will move based on trump or some other factor like earnings. >> it is a what have you done for me lately. going off of the last data point. tonight is trump. friday, the fed. people have plenty of time to set the table for that. people will look to see if he will mention dodd-frank. that will be the big thing in banks. also you have other things that could be mentioned, the border tax, kind of seen as off the table. he may be was not going to mention it. retail stocks were up 6% after the election. when the border tax kind of became a t

lenders named by the company's's competition include bank of america's merrill lynch unit, j.p.are accused of colluding bit offer spreads for bond trades involving the u.s. dollar, dating backs -- dating to 2000 11. making it harder for government lawyers to open an investigation into corporate wrongdoing accordant people familiar with the matter. the acting chairman requested an examination of what is known internally, delegated. it gives senior attorneys across the s&p broader power to probe. that is your bloomberg "business flash" update. scarlet: discussing the business of sports and money behind the game. yesterday, i sought -- i sat down with nigel eccles, ceo of fanduel. i began by asking him for an update on the deal. nigel: things are progressing as expected. the third quarter this year. the process is going well. we expect to continue on the timeline. scarlet: the third quarter this year. give us your best read on the antitrust review process under president trump. on the one hand, you have got a who isiness president very much looking to increase gdp and get countries

economics at bank of america, merrill lynch. let me ask you two. your number is 160.at right, michelle? >> my number pre-adp is 160. we did not revise because historically we've been misled. now i'm a little nervous. i think the risks are clearly to the upside. it's not just because of adp. it was also the ism employment series increased significantly. the labor differential and the consumer confidence measures looked better. i think the risk is we get a stronger number. >> joe, how about you? >> what michelle said makes sense. we're at 160. the reality -- >> look at that. >> sorry, 150. 160 sounds reasonable. the thing, becky, with these figures is that essentially 80,000 is noise. really, 150 versus 230 doesn't make a difference. >> that's providing cover. >> nobody historically has had an ability to predict with any regularity. other things such as gdp and the broader economic trends are predictable. >> let's do that. let's talk about the broader trends. it looks like things are moving along. >> all the sentiment indicators, consumer confidence, business confidence

>> at bank of america, merrill lynch i don't think we have a 3% handle yet on gdp growth.e think it will take a while for policy changes to impact the economy. that includes tax cuts. but the markets already started to price this in. we've been through earnings. earnings are improving. the market is expensive but parts are very inexpensive. for example, financials. energy. >> okay. >> and we've seen a rotation out of the growth stocks into the value stocks. they sold towards the end of last year, technology stocks. now tech is coming back. what we're not celebrating, i think we should be celebrating like new year's eve with party hats, noise makers, confetti is the nasdaq is now above the 2,000 high, one of the big themes at the firm is innovation in the digital era. that's where those stocks are. they're housed in the nasdaq and it's beating the dow and s&p. i think we need to pay more attention to that index and those companies. >> david, when would you say okay, all these policy positives are getting dragged down. all this -- all these distractions, they could become mo

from his office in new york, the head of google -- global economic research at bank of america merrill lynchsights here. suddenly, talking about maybe we need to move raised -- rates upward more quickly. that certainly was not a topic of conversation six months ago. is this a new trajectory for the fed? keeping herhe's options open. clearly the fed is not going to be hiking just once a year going forward. they want to keep that option on the table. i think we need to keep the other part of her message in mind here. she talked a lot about uncertainty about policy in washington, whether trade policy or fiscal policy. it makes a lot of sense for the fed to wait and see what happens, at least in the initial rounds of policy proposals, before they start hiking interest rates again. i really think the fed is very much in a watch and wait mode. the next hike probably not until june. julie: and when you talk about the policy uncertainty that is out there, what do you think is the biggest looming issue here when it comes to the u.s. economy and all of the multiple policies that are out there on the t