merrill lynch recruited you.e kamensky said you were so good as a consultant, come in and actually do the job here. and what was your job at merrill lynch? james: first job was to run marketing, then it was to run the sales organization for the brokerage business. david: you were doing that, and then somebody calls you from morgan stanley and says, you are doing a great job at merrill lynch, why don't you get an even better job and come over here? is that how it happened? james: well, they had a business that needed fixing, and i had some expertise in that business. actually it was a very struggling business at the time. it was the old wealth management business. john mack called me when he got recruited back to morgan stanley in 2005, i think, and asked me to be part of the team, which i thought was a very exciting challenge, so i did that. david: so when you came over to run the wealth management business, did you ever think you would be the ceo of morgan stanley? james: i did not. i told john actually when he

equity strategist at bank of america merrill lynch.ay.ou for joining us i think the big news for markets is coming out of the u.s. with congress just agreeing on a tentative spending deal. theaw some consolidation in japanese equity markets over the past few months. will this be a game changer? this morning's news in itself would not probably change the but from here, the dollar-yen and japanese equity should arise gain based on divergence and that are economic data for the current quota. , the market is watching the north korean situation quite closely. that is one big risk for the moment. we are now seeing the dollar-yen gaining ground on the news out of the congress in the u.s. if you took it -- take a look at the bloomberg, you can see the dollar-yen is getting close to resistance of around 111 .73. that would be the moving day average. the second resistance would be 116.30 nine. that would be at the 100 day moving average. north korea is still there. how long can this dollar-yen gain be sustained in light of, not just north korea

are staying on the sidelines a bit more. >> michelle, thank you as always, with bank of america merrill lynch. to read more about the need for newly built homes, head to our website, nbr.com. >>> on wall street, the dow rose for the fourth straight day as financials lifted the overall market. investors however kept one eye on developments in manchester following that suicide bombing at the concert that killed more than 20 people. late today the british prime minister raised the terror level in england for that country. the dow when all was said and done gained 43 points to close at 20,937. nasdaq added five. the s&p was up four points. >>> in washington, the white house sent its first complete budget proposal to capitol hill. the $4 trillion blueprint is for the next fiscal year. the trump administration says the plan balances the budget in ten years while increasing spending for the military. to do that, it's calling for major cuts to some safety net programs. john harwood is covering the story for us from washington. good evening, john. what are some of the specific domestic programs that t

jonathan: michael pond of thelays, mark cabana of comerica merrill lynch.et an update on outside the business world. this is emma chandra. >> in washington republican congressional leaders who want to focus on health care and tax overhauls have given into democrats on the spending bill. house and senate negotiators have agreed on a $1.1 trillion budget measure that would keep the budget -- the government in operation through september. it rejected most of trumps ironies including money to build a wall. president trump's chief economic adviser says he thinks republicans have enough votes in the house for the obamacare replacement bill. gary told cbs news there were be a vote this week and provisions of the health care bill still are not clear. the kennedy space center in florida. spacex launched a sensitive mission for the u.s. military. the falcon nine rocket carried a satellite into orbit for the national reconnaissance office. nine minutes after launch, it's first stage returns to earth, maintaining the vision of making space travel increasingly affordabl

mark: james, good to see you. , at bank of america merrill lynch., we speak about the satellite company's tie up with spacex. this is bloomberg. ♪ mark: you are watching "bloomberg surveillance." inmarsat launching a new satellite with elon musk's spacex later this month. it is the first of four satellites for the company's high-speed broadband services, first of its kind to be owned and operated by a single company. joining us, rupert pearce, ceo of inmarsat. tell us more about this launch. a week on monday, 7:20 p.m., on one of the most storied launch pads, the launchpad that took a rocket to the moon. we will be launching with spacex, their new falcon for thrust, which is a very cutting-edge rocket for us. it is the first time we've launched with spacex. mark: why is this significant? we're talking about providing broadband globally. you talk about the mobility. it is going to upgrade the resilience of the services you already offer. rupert: we've got three satellites of this type already. provide a seamless global network. it will become 300 meg

i'm looking at bank of america merrill lynch and american markets has actually strengthened last weekdespite all of the brazilian turmoil. even on thursday when all of this came to light, the inflows have strengthened. how do you explain that? why is that? >> the thing is this political risk is not just yen-related. it's also development-market related. we see the issues in the european union, brexit, french presidency elections, everything. what's happening, we've been talking about this for several years now that the risk, underlying risk is increasing as well. the spread is contracting between em and dm from the lower side as well. that's why investors are pushing money into emerging markets. it's not only equities. we have record number of inflows into bond flows already this year higher than 2013. >> they're no longer going into brazil for the foreseeable future. we don't know how long this will last? where else would they go? >> latin america has been a darling of investors in the last several months especially brazil and argue tina. there was a huge overweight in brazil, especi

bank of america merrill lynch stress index. levels greater than zero indicate more financial market stress. less than zero, less stress than will. we are less than zero. on tuesday, last tuesday, we felt of the lowest level since 2014. a little evidence of stress in financial markets. that is the situation across europe. washington.s get to after six weeks of uncertainty and pressure from president trump and his top aides, house republicans are set to vote today on the embattled health care bill, the bill to replace and repeal obamacare. joining us, our chief washington correspondent. here in new york is up to reporter zach tracer. kevin, house majority leader used to think the votes are there. are they? kevin: they anticipate that. i put this to mark meadows earlier who told me that he does believe the votes are there to pass health care reform sometime between 12:00 p.m. and 2:00 p.m. this afternoon. it comes down to pre-existing conditions. this week byrlier upton, republican advocating there would be $8 million worth of an

let's get back to our guest from bank of america merrill lynch.nteresting listening to the finance minister, talking about how they hope to seal the deal on greece in june. they failed to reach one last night, but the danger is that greece has slipped back into recession, and all of this delays various things -- it delays greek getting on with life, it delays returning to the bond market. >> definitely the delay we have seen is already affected the economy. at .7%expecting growth this year. most likely we will get at least .1%. i think what we will have in the next euro group, alternative is much worse. but it's not easy. germany needs a deal on the debt because this will bring them back to the program. but they need to agree on the parameters of the target, and given that we are talking about the extension of maturities in the debt, and there is a disagree on -- they the growth rate in the very long-term. -- and theyhat disagree -- to have sustainable debt, you need to six the interest rate at very low levels, which would suggest losses for europ

gilles moec from bank of america merrill lynch.erg surveillance" continues in the next hour. tom crean joins me out of new york. we will be talking to norman lamont. we will talk about brexit, oil, after our interview with the saudi energy minister, and your markets. your markets are a little on the move. this is bloomberg. ♪ francine: benjamin netanyahu is -- at the u.s. president after defense deals and a scathing message on iran. extending gains. saudi arabia's energy minister gives oil an added boost after telling bloomberg everyone is on board to extend output cuts. jpmorgan's ceo, jamie dimon, says he's positive on regulatory reform under u.s. president donald trump. good morning. this is "bloomberg surveillance ." i'm francine lacqua in london. the coherent men today is time tom keene in new york. we look at oil and geopolitics and the crossover with economies. tom: two of the stories in america, the bombshell resignation we may see of mark fields at ford -- this is huge news for american industry. also the budget coming up.

bank of america-merrill lynch says that so far this for any season, many multinationals are highlightingth in overseas markets as drivers of their earnings. that was especially the case for industrials. it is something we continue to watch for. joe: arguably the strong recovery in europe right now has been the under discussed story, with the political risks out of the way, more and more people will pay attention with fundamental's looking pretty good. speaking of things that are looking good or at least people , often good, the vix called a fear gauge, although not really a measure of implied volatility, at its lowest level 1993, point today is a extraordinarily low implied volatility. this chart looks at what usually happens to the vix and the s&p close.t we get sub-10 the answer is, nothing conclusive. people are so complacent, or last time we were here in 2007 -- then the markets crashed. turns out there is really nothing you can say about the vix this low sometimes it goes higher, sometimes it goes lower. it is not -- it is not a particularly good predictive level. julia: i love that

bank of america merrill lynch saying this is unlikely to continue.merging-market currencies have been doing very well and could end up a little bit mixed. quite an interesting correlation at the moment between the yen and other currencies. anna: let's get back to our top story here in europe. in the u.k., the military will guard music and sports events and unprecedented security operation. police are looking for potential accomplices of the suicide bomber. after meeting with top security officials, prime minister theresa may announce intelligence analysts had raised the u.k. terrorism threat level rum severe to critical, the highest level, for the first time in a decade. >> the threat level should be increased for the time being from severe to critical. this means that their assessment is not only that an attack remains highly likely, but that a further attack may be imminent. talk to the european head of global markets research at mufg. some of the news is still very raw from what happened in manchester over the last 48 hours. heardg at what we've a

merrill lynch folks are saying that historically, this can't last. something has to give.ooking for three main points and expecting rates to get higher over the next few years. the first is, the price incentive to buyers are watching the market. they look to rein in the balance sheet and work toward further policy normalization. secondly, many foreign investors and foreign central banks are doing the same thing, looking to buy less of these bonds over the next few years. thirdly, pension funds are demanding high-yield on fixed income securities at the moment. something has to give here. besees most likely, that to the bond market rather than the equity market. nothing in the equity market is pointing toward correction. they keep going back to valuations. uphistorical levels come does not look too stretched. betty: the latest beige book survey -- speaking of yields and what is going on in the economy because of that, seeing a moderate growth across the u.s.. it does raise warning flags as well. steve matthews has been going through the findings in the beige book. >> there w

. >>> and the day after emmanuel macron's election win, from bank of america merrill lynch argued thatlows have the potential to increase further in coming months. european investment banks also reporting strong first quarter results despite ongoing weak innocence that theft income. according to a report from moody's the sector remains sound, and we now have lori mayers, associate manager and director of moody's around the desk. let's talk about the first quarter. i spent a lot of time talking ubs and the numbers and being very bullish. we see this, given seasonality, how much of the strength was se seasonality and how much is strength? >> well, we do expect that the markets will remain volatile. so we're not saying that one quarter necessarily makes a trend. but it was a good quarter for the european investment of funds and the market revenues with the exception of barclays. but really, what we saw was that capital markets revenues pulled the revenues for the quarter. because as revenues overall were relatively flat. and that's really reflecting, you know, weaker results in some of th

let's finish up with bank of america merrill lynch.len to its lowest levels since october of 2014. we are going to talk about that in just a second. this is a measure of future price wings supplied by options markets in global rates. equities, commodities, and currencies. the global uncertainty index has come down as well. it reached a record high in january. should we be worried? the first question i will ask sid in a few minutes. vonnie: it might be but if i get depressed -- to ask the first question it will be about volatility. the vix below 10, it was a bit of a surprise. that was a watermark. another indicator is the yen. 114.09. now the korean won -- the korean you want, with a new leader. potentially it is not as friendly as some of the other candidates. that is weakening the korean wan. crude oil's future just below 46 a barrel. is global macro movers like g-20 movers. turkey stocks are rising a little bit. the currency board has been having a difficult time in terms of yields. well, and japan moving as a little buying here in

. >>> i'm just looking at the latest note coming from bank of america merrill lynch saying that it's upgrading french gdp forecasts by 20 basis points for 2017 and 10 basis founds pour 2018 at 1.3% and 1.4% respe respective respectively. we'll take it, on the back of emmanuel macron being elected. he's known to be an economic liberal. the question for economists out there is whether he can push through all of this reform. steve. >> thank you very much indeed for that carolin. the relationship between france and the commission and france and eu, pro-european who wants more integration. and a eurozone finance minister as well. we've been speaking for the commission, president jean-luc juncker offering his congratulations. speaking to cnbc, the european commission of economic and financial affairs, echoing this sentime sentiment, saying he was optimistic about the future of the union. >> first, you got to deal with brexit and to succeed in that negotiation. second, you've got to bring the 27 members of the eu together. and unity is very important for the market, for protection and defen

this is the bank of america and merrill lynch market risk index. that line falling to its lowest levels of -- lowest level since october 2014. global economic policy uncertainty index. the blue line is also declining. the lowest level since october 2016 after reaching record highs in january. let's finish it up with commerce bank. first quarter, they beat estimates of the german ledger. the burgeoning rising from trading securities six months after it rolled out a strategy to's -- to pull back from the business. shares and commerce bank today are up by 2.7%. new insight now, discussedn ingles with matt miller. >> the strategy we had at the end of last year is the right thing to do. i think q1 was a good start into the year. it proves that the strategy is on track so far. not: the result you put out today -- matt: the result you put out today beat the highest level on the range. it convinced in -- beat convincingly beat the street. a lot of that has to do with the trading business. which you are restructuring. -- would you read that scaling back dec

david: that is jill kerry hall of bank of america, merrill lynch. for mergers. sinclair broadcasting has confirmed its deal to acquire tribune media and coach has agreed to buy handbag maker kate spade following months of talks. joining us now is bloomberg's deals reporter, alex sherman. this is not a big surprise all the 21st century fox flirted with it. sinclair to be thought they had this in the bag -- thought maybe they had this in the bag. thely late competition for -- fox and blackstone took a look at combining and potentially buying tribune. they did in the bidding, but next target -- they did not end up getting in the end, but next target and that pushed the price level higher. david: while did sinclair want this so badly -- why did sinclair want this so badly? >> they basically rolled back a old regulation. it gets complicated. david: makes it possible to buy more television. >> that is the end result. now that they can buy more tv stations, tribune was on the table and the whole game in the broadcast tv universe is bigger is better is beca

if you look at the bloomberg, we have a chart of the merrill lynch option volatility index which measures of s&p volatility as in the vix. it has been there since the election, and remained a pretty wide gap here. david: thank you very much. the julie hyman as we wait or the rest briefing on the white house. let's bring in kevin cirilli from capitol hill. just a couple of days ago, you were writing about how compressed it is, i would imagine yesterday made it even more compressed that's getting a new head of the fbi. how does that change the calendar on capitol hill? correct. this is just a log on the fire of a packed calendar. they already had a series of things up ahead that gave them little room for things like tax reform, infrastructure, they have to finish a health care bill. in less than 40 days they have in august recess. they have to extend flood insurance on the children's health insurance, they also have to raise the debt limit. but all of th together and now you have to add the confirmation of a successor of the director comey to the fbi. this is not going to be an easy thing f

the takee bond market, of america merrill lynch index, at a three year low.olitical race which could drive you up 2%, versus inflation which could take you to 3%. when you look at this repressed volatility and the bond market, where d think we break to in the first instance? three or 1.75? >> i think the temptation is that we break lower. but the trouble is these days emma and it comes back to interest rates, when money is mispriced, then every other asset class really doesn't ring true to the long-term averages, is what's making it difficult for investors and institutions these days. aboutterms of debate where the terminal rate is, where do you see that? what infected think that will have on markets? we look at long-term rates, which is where we should definitely be looking, it's going to take us a very long time to get anywhere close to those. markets are going to remain very buoyant in the short-term because money is still very cheap. if we are getting people back in employment and they have money to spend, that's going to help the companies grow. once we

>> let's pick up these points with the head of commodities research from bank of america merrill lynch. let's pick up on compliance. if oil prices do move higher on the back of this nine-month extension, at what point do you think non-opec producers, like russia for example, drop off when it comes to compliance? >> it's true what steve said. compliance has been surprisingly strong. we have never seen an opec deal with such strong commitment, real commitment. the interesting thing is the market this time around doesn't want to listen to opec anymore. opec completely lost grip on the market in terms of rhetoric. they want to see action. it is true the actions have been positive. we do believe the market will go into a steep deficit especially in the third quarter, which will be unseasonal. we do believe inventories will come down significantly during the course of the year. it should bring a shift in the structure, which by the way is what they're really targeting. they want to have higher spot prices than forward prices to penalize forward sellers. we do think the market will rally on t

joining us is savita subramanian from bank of america merrill lynch.been amazing to watch the nasdaq close at record after record. are the earnings backing up the valuations? >> you know, tech has been a surprisingly strong sector. i would say the earnings support is there. it's interesting. tech is still trading at almost the lowest valuations we've seen in 25 years. it's really -- every move in price has been matched in lock step by a move in earnings. it's so not expensive. what is interesting is we are seeing other sectors take the reins from tech. i have to say, i was surprised by this strength and robust numbers that we're seeing. we're seeing records everywhere. and the sector that's really leading the charge this earnings season is industrials. a lot of bellwether companies like caterpillar. machinery is one of the biggest contributors to earnings. it feels like this tech reign, while it is going strong, may be ced ceding leadership. >> savita, your point about tech valuations only stands because the average valuation for the sector is weighed

used to be one of the top executives at morgan stanley and merrill lynch.d he is going out to latin america and maybe even china to raise, raise the big bucks, to try to get investors want to be silent investors so to speak. you need to raise $100 million at a pop to raise 1.34 or $2 billion they need for the cash cushion and everything else. one thing to point out, and this is kind of key and shows you this bid is no somewhat jeopardy right now, from what we understand friends of jeb bush are telling him to walk away from this right now. liz: oy. >> here is the reason why. there is a lot of money to be raised. not only that the marlins are not making a lot of money. jeb, from what we understand, friends of jeb bush tell him to walk away. spokeswoman for bush he denied that they're ending this right now, but this thing is clearly in trouble and, i will tell you this. i can't understand why the marlins are worth $1.34 billion. liz: there you are. >> the finances, i'm telling you liz, the finances don't work. i would suggest that everybody read my report on f

. >> if we look at positioning, i had a recent look at bank of america, merrill lynch piece saying ten-year positioning in the u.s. is the aat a nine-year. yields have popped up to roughly 2.3%. are we going to be seeing more unwinding of this heavy positioning? >> we've seen the unwinding from the opposite side if anything over the last couple of months. speculative positioning was record shorts, just over a month ago. so, that has come off. so evaluations and positioning are less supportive along treasury trade, but we still think there is a case. also don't forget any meaningful rise in yields in the u.s. will have a pretty fast impact on the real economy in the form of higher interest costs, mortgages, things that do have an impact on the consumption patterns that we see there. >> are you worried about the recent retail numbers given that 7 0% of the economy is based on the consumer? >> not mparticularly at the moment. we are watching a few sectors in the united states that -- we'll see how these evolve. but, you know, the u.s. economy is doing relatively well. and the labor market cont

bank of america merrill lynch saying opec will extend cuts and hope demand recovers.cut more, they will likely lose additional market share to u.s. shale and prices may not move up more. it's cautious about what an extension of the price cut means. brent crude up by 1.2%. 53.10. wti at 49.92. >>> let's remind you what u.s. futures look like this morning. we are looking to extend yesterday's rebound. we saw a really positive day for u.s. markets yesterday post the big selloff on wednesday when the dow lost 372 points. the s&p 500 this morning seen up by 5 points. dow jones seen up by 31. the nasdaq could increase by 15 points. >>> let's show you what's happening with the european markets. we are broadly higher. the ftse 100 up by 0.4%. not quite at the record highs that we saw earlier this week. the xetra dax up by 0.4%. >>> that's it for today's show. i'm carolin roth. "worldwide exchange" is up next. have a wonderful weekend. the show's about to start! how do i look? like a bald penguin. [ laughing ] show me the billboard music awards. show me top artist. show me the

active money managers are doubling down on tech according to bank of america merrill lynch which showss are holding a record amount of overweight positions. big tech firms have accounted for a third of the overall gains in u.s. stacks with data showing apple, amazon, facebook, microsoft and alphabet enjoys the most significant share price jump. amazon broke above $1,000 for the first time ever in yesterday's session. with the nasdaq at an all-time high and tech stocks at 15-year peaks, we are asking wlyou what would you buy for $1,000? with more than 4,500 votes counted, 36% of you have chosen bitcoin. bitcoin. wow. i thought many of would have gone for amazon. head to traderpoll.cnbc.com to cast your vote. >>> one analyst who correctly predicted bitcoin could hit $2,000 now believes the currency could reach as much as $100,000 in ten years. head online to find out why. >>> let's change gears. janus henderson completed their merger yesterday with the listing of shares in the combined group on the new york stock exchange. they took the decision to merge amid increasing outflows. janus h

. >> merrill lynch pierce and smith. we don't talk to that. >> that's how we roll.en is under pressure. that's not good for a stock, 153 bucks, down three bucks. >> the partner stock, a company is getting hit much harder. a bigger deal for them than it is for amgen. really the issue is is that there was some increased cardiovascular stuff. they disclosed it. maybe that will have some impact on who this gets prescribed for. it's to prevent bone fakihturra. i don't think it's anything earth shattering. i continue to think this is one to have better names in the space. >> weiss, want to talk to us about blackstone? announcing plans to create a $40 billion infrastructure fund in mostly at u.s. projects. >> and clearly, blackstone is participate, but the bigger story here is steve schwartzman is the main adviser without a htitle. it will also benefit private equities. a few concerns about what they're going to do with the real estate deduction. i think this should allay some of those fears. >> sarratt, you own the stock? >> we do. it's a great company. over 300 billion o

if you look at the merrill lynch fund manager survey this weerk you have people say iing the mu is overratesically, you have to go back to the year 2000. it means that frofsal investor psychology, we're sticking in this for that last bit. whether we're going to get policy help, i don't think it's a big driver, but it's something or this final bull market flo flourish we often get. makes people say i wasn't digging in here for five years of growth and great economic times. >> the survey also talked about cash level, not suggesting you're at a top. looking for 10% earnings growth over the next 12 months. >> i think that the biggest committee fundamentally is the back half of this year, the earnings forecast have held up very well. is there anything in those forecasts significantly linked to policy? i would say probably not. i think basically, people are kind of extrapolate iing just t global growth trend and the question is is, does that trend persist or are we in another soft patch? >> can you take the other side of that urk paul? ceo confidence has been high since the election. they've had

banc of america and merrill lynch have a survey out saying the number of overweight technology is the highest on record sense they tracked this back in 2008 a. lot is being driven by a 71% overweight in fang specifically. so you go into the no fang zone, pete. >> right. >> because they theoretically. >> it's a track. >> just to add a few more of these names. >> yes. >> we talk all the ability tech names. all of a sudden you throw out a visa. look at the production out of that one. how about western digital? how about skyworks solution? any chip that's related to apple and apple is not a part of the fang, throw apple in there as well. throw in something like sales force. you look at these names, they have an incredible p.e.. that's a dangerous stock. it's trading near the 52-week shy. there are tradeable areas i think. >> are you talking ability a valuation? >> i'm not scared of it at all. i think they own a lot of the cloud space, microsoft is another one. we talk about it all the time. they took over, that stock has gone from virtually 30 to today over 70. so there are names out ther

merrill lynch where he worked, his former boss there says he exaggerated at another company worked, a former president of the company he lasted for three months. he's not clear to me how much business he actually generates in russia. he wants to. but i'm not sure -- >> i'm not sure he generates any significant business there. he seems like a gadfly. we don't really know what he does. >> the president did cite him as a senior adviser at one point in the campaign. >> thanks to everybody. >>> latest on the breaking news on capitol hill. house republican leaders say that they have enough support to pass the gop healthcare bill. will hold a vote tomorrow. breaking news ahead. is to always keep track of your employees.r micromanage them. make sure they're producing. woo! employee of the month! you really shouldn't leave their side. vita coco coconut water, hydration comes naturally. ♪someday you'll let me put my way ycomb up there♪air♪ ♪'til then you're beautiful and i just stare♪ they open on a game show set in the 70's, in my johnsonville commercial, today we have a new smoked sausage fro

don reagan was an imperial arrogance former chairman of merrill lynch. he was a guy who likes to have himself announced when he entered a room. ladies and gentlemen the chief of staff of the united states. [laughter] he was clueless when it came to being white house chief and as nancy reagan famously said later , he loved the chief part of the title but not the staff part so much. jack will tell you that the staff is the most important word in the title. but anyway reagan took over in reagan famously said that as a sterile lands on the white house lawn, i want to know about it. that's how on top of things i'm going to be. something i didn't notice this cockamamie scheme that was being hatched in the white house basement which became iran-contra selling arms to iran from hostages which nearly ended reagan's presidency and is another great story i won't tell right now of how when reagan was fired after he hung up the phone on nancy reagan howard baker came in and really helped to rescue reagan from that scandal. >> that whole attitude and you mentioned it

don regan was an imperial, arrogant, former chairman of merrill lynch, he was a guy who liked to have himself announced when he entered the room. ladies and gentlemen, the chief of staff of the united states -- he was clueless when it came to being white house chief, and as nancy reagan famously said later, he loved the chief part of the title but not the staff part so much. jack will tell you that the staff is the most important word of the title. but anyway, regan took over and regan famously said, if a spare row lands on the white house lawn, i will know about it. that's how on top of things i'm going to be and didn't notice this come scheme being hatched in the white house base. which became iran-contra, selling arms to iran for hostages, which also nearly ended reagan's president simple. when regan was fired after he hung up the phone on nancy reagan, howard baker came in and rescued -- helped to rescue regan from that scandal. >> that whole attitude of a chief -- you mentioned it in terms of john sununu, forgetting who is the president and the chief of staff. that can be the und

a chance of some sprinkles on thursday although we don't expect rainfall totals to amount to merrill lynchd we'll have gusty wind by the end of the week. really gusty. right now we're looking at a temperature range of 61 at half moon bay to 81 in concord. a pretty wide range, our usual summer spread coming in spring. here's what's coming our way this evening. forecast animation 5rk this afternoon, notice the fog from the coast surges across the bay. by 5:00 tomorrow morning at the start of the morning commute we'll see widespread fog not only at the coast, but locally inland and across the bay. that means reduced visibility for commuters. bear that in mind. you may want to give yourselves extra time if you're a morning commuter. overnight lows in those morning hours will drop into the low 50s in many locations, low 50s and upper 40s in some of the cooler spots inland. that takes us to tomorrow afternoon. under bright, mostly sunny skies tomorrow, much cooler weather than we had today. highs will range from mid to upper 50s at the coast to mid 60s a right around the bay and upper 60s in mos

it's also a lot of institutional investors like bank of america, merrill lynch, mellon, fidelity, you name it. what does that say, the fact they have a stake? we should qualify by this is 13f, it could be old. we don't know if they still hold this stake. the fact they were early investors in this company, what does that tell you? >> yeah. i think so it's really interesting because snap comes after obviously facebook and twitter ipos over the past few years. i think folks were looking for that next sort of facebook to get in on early. the problem with snapchat for me is that it has a lot more corollaries to twitter and their brand advertising model isn't as scaleable, especially with a small user base than facebook's which has enormous use. i think they have to realize what is that growth potential going to be in the long term. i'm not sure they fully probably understood that in the beginning. maybe they have more positive outlook on snapchat than i do. i still think they are in the same boat as twitter. they have to figure out maybe it's self-serve ad system which they recently rolled

merrill lynch where he worked, his former boss there says he exaggerated at another company worked, a president of the company he lasted for three months called him a wack adoodle. he's not clear to me how much business he actually generates in russia. he wants to. but i'm not sure -- >> i'm not sure he generates any significant business there. he seems like a gadfly. we don't really know what he does. >> the president did cite him as a senior adviser at one point in the campaign. >> thanks to everybody. >>> latest on the breaking news on capitol hill. house republican leaders say that they have enough support to pass the gop healthcare bill. will hold a vote tomorrow. breaking news ahead. stella artois has partnered with us at water.org to help provide access to clean water to women and their families in the developing world. we can be the generation remembered for ending the global water crisis once and for all. ♪ start your day with the number one choice of dentists. philips sonicare removes significantly more plaque versus oral-b 7000. experience this amazing feel of clean. innova

still what this is francisco blanch of bank of america merrill lynch.g towards the finance ministry's response to this, always pumps you whenever you get a downgrade. the ratings company has underestimated the capability of the government to reform. it is the commodity market underestimating china's ability to boost demand? >> china has a bit of a credit issue. everyone realizes that. china has continued to move higher and that is not helping the metals markets. i don't think it is an issue that the chinese government won't be able to control for now . the economy is ok, more or less. we are going through this leadership contest. i don't see a lot of downside risks. is that theclear metals are not going to like any orancial related issues upgrades, or increasing rates. jonathan: pick any metal and it is a proxy for chinese growth. it has been for a long time. as you look from iron ore to copper, where has there been the most capacity cuts where that market is more insulated than this conversation around chinese growth? >> we just had our global conferen

. >> he is with bank of america, merrill lynch. what are your thoughts on what is playing out here?> i think clearly the market is taking this a little more seriously than some of the events we've had recently. i think ultimately it shouldn't matter that much to the market because with the market, it should be pretty ago gnostic about who is in the oval office. it should care more about what is driving growth. the fact is does it matter who is driving -- who is in the presidency. with the market share about tax reform, and in the worst case scenario if pence becomes president, you can make arguments he is more likely to get tax reform done. >> i'm not sure if you were here when jeremy siegel was on a few minutes ago because he made the exact same argument. it is clear that people have this almost, you know, deep down desire, hey, maybe everything is going to move around. for the time being that's a pretty unlikely option, so what do you do in the meantime? >> yeah. >> the market is reacting to today is the idea it is going to distract from the overall conversations with congress and

jpmorgan indicated that if revenue is down 15%, bank of america and merrill lynch, not in the dow, saysnue for the second order is going to be down about 10-12%. that is all weighing on these things. on the upside, you have dupont, pfizer, verizon gaining at least 1%. a little bit of the chemical names and the telecom names, telecom has been a star performer over the last couple days. in terms of individual movers, i want to highlight michael kors. that stock plummeted, down 8.5% after seeing store sales drop -- 14% last quarter, worse than projected. for this quarter, things don't look much better. perrigo with an increase after first-quarter increases beat estimates. it had gained as much as 12%, but reclaiming some of that advance. joe just broke the news that it is exploring a sale. joe: a possible sale, but interest is lukewarm. on the government bond market, .et's look nothing happened in the u.s.. at one point today, 10 year yield was below 2.2%, but ended up unchanged. interesting, more action in china. lots going on, the deleveraging, the pboc moving up the human reference rate

has worked for more than three decades in finance and banking in the region and is chairman of merrill lynch, kingdom of saudi arabia. following his prepared remarks by our panelists we will have a discussion session moderated by doctor hans riemer, executive director of middle east policy council. to facilitate that discussion we have placed cards on each seat and would ask that if as the panelists are speaking you have a question, please write it on the index card and hold it up for our staff to collect. and the 12 will use these for the question and answer session. it is my pleasure to invite his excellency, abdallah al-mouallilimi, to the podium. >> excellencies, ladies and gentlemen, it is my pleasure to address this gathering on the issue of terrorism on national and international efforts in combating and countering terrorism. let me start by laying down a few principles that i believe are well-known but are sometimes ignored or overlooked. terrorism and violent extremism is not confined to any particular race, religion or national background. terrorism needs no adjectives. it is simpl

this is the merrill lynch market list index, continuing to drop, the lowest level since about late 2014auge of expected swings in the future implied by the options market across several asset classes. levels at less than zero indicates less stress than typically normal. this has been falling since the november u.s. election, and the options market seems to be encouraged by the global growth outlook, which we had seen markets also gauging when it comes to that positive tone. there is the question of whether we are seeing too much complacency. betty: thank you so much. certainly going to be watching for that. let's get to the first word news with paul allen. bloomberg has been told several big banks have been subpoenaed as part of a criminal investigation into possible manipulation of the u.s. treasury market. , bnp paribas,s rbs, and morgan stanley have received request for information on the $14 trillion market. the justice department has been examining u.s. treasuries for about two years, focusing on issues of securities. goldman sachs posted disappointing income trading results in the

they give america a merrill lynch is saying $5 billion.he market does not have a blueprint for this. neither do you. there will be a big source of demand removed from the situation because the fed has been buying so many bonds to replace the ones that are rolling off. i guess it will be predictable. i guess it will be fully committed get it. i wonder why everyone is so sanguine that this will be no big deal to the bond market. think yeah, i just do not the numbers are big enough to really have a very large impact. there will be some impact, but it will be relatively small, and to the extent that there would be months where there would be a lot of rolloff, we will put them caps on that to keep that under control, so there will be a sort of maximum that markets would face in any particular month. to thect details are up chair. we will let her make the call on that in conjunction with the markets desk in new york. anchor: jim, i want to get back to the issue of rate hikes. is it one or two this year? i know you are more on the former than the

bring out this chart that shows the measures of volatility, several different measures from the merrill lynchasury volatility index, the traditional vix we have been talking about, coming down to a 24 year low. all of them you see on the screen there, coming down. precipitously down. why is volatility so low? betty, i think ultimately, this is about in the economic recovery. it has been going on for some time to the latest job numbers from of biggest economy in the u.s. showing us last week that the unemployment rate was down to 4.4%. it is a story across the world and we are through that turtle with the french presidential election. i think that kind of adds a more -- at what positivity to the sentiment. the worry is still around what chinese regulators can get and do what they are doing to restrain lending in some parts of the economy while at the same time maintaining the levels of growth that investors are expecting over the next two or three years, but ultimately, this is a signal of near-term volatility. one of the key things to look at is the vix futures pricing out and further into th

speaking to the folks at merrill lynch, they say the trend will break.hey expected to break down later on in this year. it is around the divergence we are seeing in monetary policy. everyone is well aware the fed is starting its process of rate normalization, bringing down the balance sheet. the things they pick out our the fact the market is only pricing a slow rate of increases by the fed at this point. bank of america expects more aggressive moves by the fed. that supports one case that might lean on the yen there in terms of how the dollar is related to the end. the market ise, maybe ignoring or underpricing me sense of how the bank of japan has to keep their foot on the floor, keeping that yield target very much in focus. has is a at a time when ecb to start to talk about an exit policy. and the fed of course moves further through their rate normalization process. the key differences between japan, europe, and the u.s. for bank of america, at least, they say this divergence will break down. betty: thank you so much. now some perspective on the budge

a new report from bank of america/merrill lynch says 71% are now overweight. melissa, is that right? >> most are overweight technology. the highest on record going back to 2008. of that overweight 71% -- >> are in those stocks. >> not all active managers. >> not 71% of all fund managers. >> the overweight in technology. >> basically a lot of people in a really small elevator. >> exactly right. that's what you need to know. >> this is why they pay me tens of dollars. the state street global advisers and senior portfolio. michael, i'll ask you first, are you one of these guys in a very small elevator? are you heavily buying into any of those tech names? >> this elevator is going to the upward part of the floor so that's a good start. >> all elevators have weight limits. >> folks are equating the stocks to technology more broadly and the problem is the return, the median return for the it technology sector is about 19% and about 74 have outperformed this year. the it technology rally is more than just the faang stocks. >> rich, what about you? >> we're a little m

bank of america, merrill lynch, recently signed a paper, if there is potentially $2 trillion that willquates to three quarter point interest hikes going back to melissa's point. where they risk double tightening? quantitative tightening? >> remember, this could take a very long time. depending the starting level. >> yes. >> 10 billion. going to gradually -- the other thing, theory on this thing is buying a bond in a crisis has a much bigger effect than selling a bond in more normal times. so that the down side, the -- the reducing of the balance sheet is technically not as huge as the idea of buying it when markets are ill liquid. >> that's a good deebd. disagrees but not for today. bring you back. at least we got out of this another acronym. r.o. krnkts, roloff cap. who's down with r.o.c.? all of us. >> you rock it, brian. you're rockin' it, baby. >> i love it. ross in croatia. thank you. >> thaunnk you all very much fo that jarngsd b that. >> and bob pisani, stock market reaction. >> quiet in terms of raeeaction. i think a little more idea how they're going to deal with the balance s

we had that report from merrill lynch that professional fund managers are steeply overweighting technology you know, again, you'd want to see a little more diversity. >> i wonder if amazon is an exception of that, trading at 150 times next year's earnings. yesterday, we interviewed lee coop cooperman of omega, amazon may be hard to justify the valuation. we'll watch it. it continues to go up. >> it's been hard to justify the valuation. >> yet -- >> every single day. yet, we know the 20 year performance of that stock. if you owned it, luckily even off ipo. speaking of valuation, tesla shares up another percent after a decent day yesterday. >> it was. yeah, kind of, you know, broken out above what was kind of the top of its range. and of course if you're going to try to make the bold case for tesla the first thing out of your mouth is probably amazon. they thought it was only books back then, it was way overvalued but not endorsing that view of course. one of the differences is that tesla needs capital constantly. it burns a lot of capital and basically needs to raise equity and debt. i beli

were in pieces, do you want lee man brothers on their own or rather have lemman with barclays and merrill-lynchith us, and have 30 billion dedicated to trading businesses that people are concerned about? i want that structure, especially as a person that at the end of the day pays for the cleanup. >> if this administration separates big banks from the small and lightens burdens on smaller banks, does that disadvantage you? >> i don't think so. different business models appeal, but when i went into the business and business side 20 years plus ago, everybody said, oh k don't worry, all the banks will be five banks in 20 years. did flnot happen. there's still 5,000 banks. always a different model. >> could a small bank lend to a small business than a cheap erae than you could or make a mortgage at a better rate than you guys could? >> balance that against the scale of the economy and stuff, but the question is, how does the banks help economies grow? the discussion about regulatory movement and change and thinking about resetting regulation of the balancing is how to help the economy grow. at the

data let's go to merrill lynch and expert from capital management.e of this inflation higher and weakness? kamal: as the chart nicely highlights, there's a second order of effect, the higher inflation rate crimping disposable income and leads to the slowdown in u.k. economic growth. longer term it has negative implications not only for the pound but the u.k. economy as consumers continue to slow down. we see the vehicle registration numbers which also are weak and bringing it to egg the pound move may be on the basis you which we ng rate hike don't think is coming but the bigger squeeze is for u.k. personal consumption. francine: the inflation resumed upward march last month boosted by the airfares and clothing but also energy. kamal: the economy performs well and all the polls, the conservative party seem to be significantly ahead in terms of management of the economy. the polls have not moved over the last few weeks or so and does suggest the conservative party will be coming back with a house majority. francine: steven? stephen: teresa may is not

i thought i'd highlight this chart that came from bank of america merrill lynch this week.ht criticize it because it looks at the size of the tech companies relative to gdps of metropolitan areas. it's not quite apples to apples but it gives you a sense of the size and the scope of how ginormous the tech companies are. besides new york and los angeles which are your biggest gdps, you have apple right up there. along with google. you have amazon and facebook behind houston. you have some of these tech names bigger than the size of the chicago economy. just thought that was interesting at how big -- >> interesting comparison, yeah. i haven't seen that one before. >> yeah. the stag sort of got some brushback on twitter, comparing the valuation to the gdp number, kind of weird. right? >> of cities too. interesting to see new york is double that of los angeles. >> but i think it highlights just how big these stocks -- just how big these companies have gotten as their stocks have soared. they put out this list actually a few days ago. i had to readjust all the market caps which a