ethan harris, bank of america merrill lynch is still with us. where are the workers coming from? let's pretend the number plays out with the jobs report. where is it coming from? >> the labor market is strong. >> why are we adding so many workers? adding,of what we are that is giving a little more room for growth. we still have an unemployment rate of 4.4%. people are out there available for worth and demand -- for work and demand is strong. part of the economy that has not slowed down, it looks pretty healthy. >> we talked a lot about what them happy. what will it be? will it be a continued growth in the jobs world? >> you look at what has driven the dollar in the course of the last 12 months, the yield curve more than anything else. the dollarly see higher.

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

merrill lynch head of global economics will be with us.nd later, andrew balls will join us to explain what he thinks investors may be too complacent. live from new york, this is bloomberg. ♪ jonathan: this is bloomberg daybreak. this is your bloomberg business flash. biggest maker of farm machinery is buying a leading manufacturer of road holding equipment. point $5 million in cash for a german-based company. it plans to keep the existing brand. -- ended its unwanted pursuit of akzonobel. it has withdrawn its proposal and won't make another. it had rebuffed the latest $29.5 billion bid. elliott management wants the company to hold talks with ppg. the firm failed in illegal attempt to fire the chairman. volkswagen may make more suvs at its factory in the u.s. that could be complicated by uncertainty over president trump and possible trade barriers. that's your bloomberg business flash. chinese manufacturing maybe contracting for the first time in a year. that's according to the index released overnight. it dropped to 49.6. gormanstanley ceo

that was a representative from the bank of american merrill lynch.stories making the news. tesco, which is one of the world's biggest supermarket companies, appears to be cementing its recovery here in its home market of the uk after sales growth beat expectations. in the three months to the end of may — like for like sales rose by 2.3%. it did less well abroad. the firm will face shareholders later today, who are expected to query a pay deal awarded to the firm's chief executive. the chinese bike—sharing start up mobike says it has raised $600 million to help fund its overseas expansion. since its launch last year, the firm has rolled out its brightly coloured bikes in china and singapore. it hopes to be in 200 cities by the end of the year. us authorities are moving to seize a picasso painting, an apartment in manhattan, and rights to a film as part of a global money laundering case. the us alleges high—level malaysian officials stole more than $4.5 billion from the country's economic development fund. the japanese company behind the biggest recall

there was a view from bank of america-merrill lynch that the market is underpricing the big opportunity that could be at play here. is that true? or is there a fundamental diskeck between saudi economic reality and market reality and some of the other perceptions? >> if you look at the economic reality in saudi now, it's all related to oil, oil is around $50, you've seen reserves being depleted, that's reflecked in the market. the other story -- is a different thing. long-term we're talking about an event that can be 2019 nearest in my view. that's -- we're seeing foreigners slowly trying to chip in in stocks that are expected to have -- to be heavyweights in the potential inclues but it's still, i'd say we're still two years away from that. we're seing the market reacting aggressively. i think it's going to be difficult. so if we're asked about the market pricing in a potential inclusion, that's still a bit. >> saudi arabia is a huge market with a reputation for being a bit less agile than the rest. and now we're seing so many reforms. how has this impacted investors? >> we've seen it

bank of america-merrill lynch says that rite aid standalone value is $1.50 a share, falling , and 3%- 30% today france, a from the chain based in southeastern united states was poised to acquire as much as 1200 stores as part of this deal , so a lot of disappointment also in that share price today. as we see these tech heavyweights pullback. we have been talking about the industry of the iphone, but that is not helping -- anniversary of the iphone, but that is not apple and --hares, of letting microsoft are also lower. the 1.3 percent decline earlier, which is marginally lower than where we are now, was the biggest drop since september last year. this is the biggest weekly drop since november, the fourth consecutive weekly decline, the longest losing stretch since june 2016. in the battle of the charts, i the juneng you european stocks would be lucky if you are in the market, we have fallen in the last -- nine of the last 10. his growth stocks eventually was just talking about our overheated. the msci eu p and growth index that european growth index -- the pe rates it was making a va

thanos vamvakidis is global head of g10 foreign exchange strategy at bank of america merrill lynch.. good morning. let's start with debt relief, something that germany has been adamant that greece must repay all of its debts in full but the imf said we must have some debt relief because the act is unsustainable. it's looking like greece make its debt relief in some form. they have beenin debt relief in some form. they have been in this chicken game for the last nine months. i think the agreement is a compromise which is the best outcome given all the constraints but it isn't the final solution. the reason of broad understanding that debt relief could be acquired at its another kick off the can down the road. sir you won't think we will see an agreement for a chunk of debt to be written off, you think it is more extending repayments? this is exactly what they are discussing. depending on they are discussing. depending on the fiscal performance and economic growth, they have to agree to maturity extension to allow greece to eventually repay the debt. we are talking about an extension

bank of america merrill lynch sees the main message is that china does not want the yuan to be a source of instability. haidi: absolutely, styl stability is cheap here thank you for that. let's get first word news with rosalind chin in hong kong. will telljames comey congress that president trump asked him and february 2 end investigations into michael flynn. the testimony for his appearance before the senate intelligence committee, he was say he never agreed to end the inquiry. you are also say the president demanded loyalty when they met on january 27. iran's revolutionary guard is indirectly blaming saudi arabia for two terror attacks in terror on. meaningful that they took place so soon after president trump criticized iran during his trump to re-added. at least 12 people were killed in the two attacks. london, a controlled explosion outside the new u.s. embassy. it is not terrorism related. the operation comes a day before the general election where security and terrorism have risen to the top of the campaign agenda. u.s. of diplomats themselves have yet to move into the new embass

that's right, bank of america and merrill lynch can visit a long list of museums for free on the firstf each month. that includes the knnew seem he in d.c. >> extended warranties and travel insurance. consumer does not recommend paying for these services and they're worth taking advantage of if they're free. number three, roadside assistance, free towing, tire changes and rescue from lockouts. number four, free rides. capital one quick silver card holders who use their card for uber receive every tenth ride free. many health insurance companies offer free or discounted gym members. >> not for free but they'll do it for pretty low cost and way less expensive. >> and aaa customers can boar option when traveling with children. amazon prime members have a long list of benefits. the one you may not know about is discounted diapers. get 20% off diapers, formula and all of that good stuff. you have to sign up for automatic deliveries but you can easily turn off or change the frequency if you need it. an enthere are other places where you can find some of the free perks, like credit union and

strategist bank of america and merrill lynch argued this could become a growing threat if it would rise another 8% or 10% fairly soon and the fed felt it needed to cool off speculator speculation. investors will confront former fbi director james comey's congressional testimony, a uk election, and a european central bank meeting, all of those on thursd. if nothing else, these events should test the market's ability to keep shrugging off distractions in what has been a relentless upward march. >>> and michael farr joins us to discuss how all of these events could shape the markets this week. he's president of the money management firm farr, miller and washington. good as always to see you, michael. welcome back. >> thank you, sue. nice to be here. >> we laid out the case of what might be able to influence stocks. but you say at this point, given what's lying ahead for the market this week, investors need to be very cautious. >> well, i've been saying that for a while, sue. and geez, i listened to the list and listened to rick santoli and everything else, everything was in there except fo

merrill lynch gave customers a choice to move to a different platform or pay a fee. wells fargo offering different products. ubs is changing broker compensation. ameriprize has dropped hundreds of funds. some independent firms have frozen assets while the rule is under review. retirees are affected if their money is managed by commission-based accounts. customers may opt back into this accounts. the obama administration estimated the rule would save americans $17 billion in fees. but it will likely change again before a final january deadline. the labor department still reviewing it and the department has 38 political appointments vacant that will be important here. managers are traditionally regulated by the fcc, who will want a say in how it's written and enforced. the wild card, how congress tackles large scale financial reform and if they decide to roll back the rule completely. for "nightly business report," i'm kayla tausche, new york. >>> chris corosa joins us now to discuss what that new fiduciary rule will mean for you. he is founder and fiduciary expert at

. >> more on this from what tony and, bank of america merrill lynch managing director and frontier research>> this continued drawdown is something we have been expecting. economyxpect the saudi to be really lackluster this year. we expect 2017 to be a difficult year for the banks in saudi arabia. he expect issues to start showing themselves such as asset quality deterioration and the like. is a real headwinds that the saudi economy is facing. we strike that run on to continue. the good thing is, the saudi government is implementing a lot of new and, i think very worthwhile changes which are really going to start to stem the flow of currency out of the country. >> in terms of the reform process and what kind of returns, are coming off the back of that -- but that altogether on a chart that we can pull on the bloomberg -- fabulous representation of what's happening with capital inflows, in terms of foreign investor net. i know lines of greener inflows -- with the current price their is a reference line and white -- as much as you might see a few increases their as of may, the reality is, as a

neal soss and michelle meyer of bank of america merrill lynch.increase capital requirements for u.k. lenders by around 11.4 billion pounds. this is as they try to tackle risks posed by consumer credit growth but also prepare for the uncertain outcome of brexit talks. we did talk about what brexit means for the future of the bank of england, not for interest rates, but for banks. later today, we will have the fed chair janet yellen speaking live here from london, tom. tom: janet yellen speaking at 1:00 p.m. new york time. we will have that coverage for you. it is a beautiful new york. not if you are a pitcher for the new york yankees. this is bloomberg. ♪ ♪ jonathan: tax reform remains on the back burner as the republican health care bill runs into resistance with some of its own lawmakers. the eu slaps google with a record $2.7 billion fine, accusing the company of skewing search results in its favor. present draghi provides fuel for the euro bulls. forces have been replaced by reflationary once. good morning. this is "bloomberg daybreak." i'm jo

look a quick ,esson into david earlier today the head of currency research at bank of america merrill lynch. >> the dollar and the rates have collapsed in the last three months because the markets have come to the conclusion there is no -- the stock market has been through the roof. there is a disconnect between the stock market and the fixed income market. vonnie: agree or disagree? eric: i agree. i had lunch with him a few days ago on this topic. there is a disconnect between the stock market and bond market. vonnie: we should have had the interview together. eric: i saw that a couple days ago. there is disconnect with the equity market. there is no chance we will get any type of fiscal policy reform, tax reform. it is lower than what we had earlier, but i would not count it out. there is a chance we get something done on the regulatory side, and maybe the tax side as well. vonnie: you can bring it whoever you meet, and we will talk to you. thank you to eric stein, codirector and portfolio manager at this place. real yield will be live in new york city. the decision, jonathan ferro will s

a technical strategist at bank of america merrill lynch says oil is heading into the 30's.his level close could indicate more bearish tones for new york crude. it looks like we are on that path. are $40.65 andls $37.20. rishaad: let's join paul allen for first word news. paul: the belgian prime minister will convene the national security council after an attack at a belgium station. a man was shot after detonating a bag. the bomb squad carried out under a controlled explosion. dallas fed president robert kaplan says he is glad about the interest rate hike and is willing to be patient. however, he says he may be more skeptical about getting the neutral rate to 3% in coming years. he says inflation is sufficient enough to take the slack out of the labor market. >> inflation has been notably sluggish in the united states. that is not all bad. getting to 2% inflation has been uneven and sluggish. a survey by the pboc says bankers and executives are more positive on the economic outlook than last quarter. the gauge of confidence rose for the banking and business sectors. more ho

i can speak for merrill lynch. i know our legislature. we will try to do what is right. but they have limited resources to meet the needs that are out there. it is just not right to say that we are passing these problems onto the states when the states do not have the fiscal capacity to deal with it. who gets hurt ? that.2 million marylanders rely on the medicaid program and all marylands -- and all marylanders that do not want to see cost shift sharing. why are we doing this ? what is the reason why we have gone through this pain ? i have heard my colleagues talk about this and it is true. the republicans need to make room for the tax cuts. they are pretty clear about it. close to $1 trillion in tax cuts. who benefits from those ? the wealthy. those who have access to health the --d to will pay for and who will pay for the tax cuts ? the most vulnerable in our community. that is just wrong. my staff has put together a lot of individual letters that have been sent to us. i don't need to go through them. i can tell you experiences i have had walking on the streets of balt

merrill lynch has a new price target on the stock, one dollar -- $185 is the price target for the stockhey are looking at today. --y given a index of one. 185. one -- $180 yesterday. 260 this 1.6260. mark: and of course from westminster, and edwards. -- anna edwards. threeas been just over hours or so since we heard from prime minister theresa may. she made a statement outside number 10 downing street, having been to see the queen to ask permission to form a government . in her statement, she talks about the government she would warm would provide certainty for the u.k.. onesrvatives are the only with the means to form a government, but the conservatives have failed to get a majority in the election. the only way for them to govern is to form a coalition. she talked about an agreement reached with northern ireland's democratic unionist party. it is not clear quite yet what exactly sort of agreement that is. it looks like it might be a bit more of an informal coalition than what we have been seeing between the conservatives and the liberals back in 2000 10. theresa may also talked about

world's financial institutions, morgan stanley, hsbc, schroders, beyond standard chartered, b of a, merrill lynchcannot mention them all, but through to groups thendia, brazil, she'll in energy sector, these are leading companies who are saying this is important. this is the right way forward. and they are engaged in working with it to make it better over time because what will happen with this is it will be decided not by the g-20 in some meeting, me, butechnocrats like by the providers and users of capital around the world. anna: that was bank of england governor mark carney sticking with francine lacqua earlier today. we speak with tony fadell, creator of the iphone, why did he leave silicon valley and relocate to paris? that will be one of the questions asked. this is bloomberg. ♪ anna: this is "bloomberg markets." i am anna edwards. vonnie: and i am vonnie quinn. developing prototypes for the ipods and the iphone. bloomberg's caroline connan as with him in paris. vonnie.: hi, i'm very pleased to be joined by tony fadell, the father of the first iphone and ipad prototypes. tony: it is nice to

merrill lynch barn be-martin told cnbc he expects to stay dubish in months ahead >> we probably need a rollover moment in eurozone economy to consider things like equities which are just not there yet the problem is inflation isn't delivering at his speed, neither is recession looming he has the mandate to go to the government and say we need something drastic. we think high yield bbs continue to be upgraded quicker than people anticipate. that upgrade cycles makes those names eligible talk about bond buying, but there's a world of high yield credits. >> that was barn be-martin talking there. asked him for his take on the path to normalization. >> going to represent normalization, been through extraordinary times with negative interest rates. we haven't had that before and had them for a long time that hurts the banking business. looking for normalization of rates. ecb had great impact in stabilizing the economy, lenlder of last resort through the crisis as the economy has come out of recession, it will be time for rates to normalize. >> how much did the ecb do this? >> when? that's

in fact, bank of america, merrill lynch put out a note today, we now doubt the demand growth will acceleratementum for now so in answer to your question. i think we are going to see this for a while. economy, they say is going sideways and we are not going to see increase in demand. this maybe here for a while. two dollar gas. who knew. liz: who knew? jeff. it's hot out there. jeff: i admit it. liz: you're not sweating at all. you're cute as a cucumber. jeff: i have people with umbrellas. there's jason. [laughter] yea, jason, oh, well, you don't know him that well. back to you. liz: thank you, jeff, very much. we have the closing bell ringing in about 28 minutes, bring him back. we are going to tell you who is demanding that the just ousted uber ceo come back and silicon valley bad boy elon musk, we have more on him in just a minute but, yeah, who is demanding that uber come back, the bad boys of the silicon valley are making ways, we will tell you about it coming up. of course, we are watching the market. the dow is down 34 points. the master mind that was able to hack the grid in ukraine m

mcdonald's had been hit for about 36 hours here we go, bank of america, merrill lynch says no, have nogoes 165 to 175, and they're talking about the franchises doing better. what i thought was interesting the hiring 250 people, they are allowing to you submit it, submit applications via snapchat, and people are buying snapchat on that may i remind people there's 900 million shares that are unlocked in the month of august so steel yourself if you're buying snapchat off that mcdonald's news, be aware that there's some others who may not be as sanguin who can tell during the month of august difference between mcdonald's and cheesecake the only casual dining company that is really doing well right now is darden, but red robin had a good quarter red robin has drinks >> mcdonald's coming off a 22 win week streak. talking about ml yesterday and the00component performance since he began, ge was last number one mcdonald's >> if you took apple out, absolutely by the way, just so we know, there was only one positive comment about ge, and that was steifel saying we like what flannery will do i tho

bank of america, merrill lynch, changing the price target. look at the stocks this week.anced micro spoke at the bank of america conference. they're up, nvidia to the upside. the energy group, a new 52 week low. there's the financial spdr by the way. 52 week low on the xle, the energy etf that we saw yesterday. we also saw energy stocks at new lows. a lot of the big names, they're up fractionally today. hess, transocean, all 52 week lows yesterday. there's no bounce in oil after the tremendous drubbing that oil took the other day on the unexpected build-up in crude inventory. so three sectors, three different stories really in the markets. so slight bifurcation and the industrials up 55 points. carl, back to you. >> thank you for that. we mentioned bond yields. let's get to rick santelli in chicago. >> good morning. you know, the numbers aren't big, but they're important. especially when you're looking at the short end. the two year yields have come back to 134. when they were under 1.30 there were issues regarding the fed. we can argue why the fed will continue to raise

a new survey from merrill lynch shows 44 percent of professional investors believe the stock market is record high and it comes as the do you and the s & p 500 and the russell 2,000 all hitting new all-time highs. meanwhile the hits keep coming for retailer sears now saying it's cutting 400 full-time jobs many of the positions corporate office in illinois. if you'll recall the company recently announced its closing stores because of slumping sales. the publisher of magazines fortune, times slashing 300 positions. that's about 4 percent of its workforce. verizon finalizing its four and a half billion dollar of yahoo on tuesday. marissa meyer is stepping down. reports say she's walking away with 23 million bucks in severance pay and that doesn't include the value of her stock holdings. that's business. i'm david asman. man. stronger is rebuilding a newborn's heart... and restoring a father's faith. it's standing tall after one surgery... not six. stronger is being a typical kid... despite a rare disorder.