mike regan has been following this powershift. what was behind the goal now?t seems a bit late to be cutting fees. two and 20 is the stereotype. they've been coming down gradually over the years. the latest number i saw was 1.5% is the average for the management fee. that is the fee you have to paying a matter what. -- you have to pay no matter what. the 20 is the performance be. that has dropped down to 17.5%. obviously, the pressure is really mounting now. a lot of pension funds, endowments, insurance companies are big hedge fund investors, they are all pulling money out. the balance of power has shifted. investors have realized we can --h back on these fees david: our colleague talking about the trans-we've seen -- trends we've seen. do people think a simple reconfiguration of the fee structure will reverse the trend we've seen? it, but doesn't reverse it is something you have to do. one of the more interesting stories i saw this month was new jersey, my home state, they tend to play hardball of it. that's a bit. they are cutting in half their allocations t

utilities going telecom, ples.mer stat mike regan is covering stocks for bloomberg gadfly. change in're seeing a leadership, as julie was just explaining. people believe the market will continue? hard to say. earlier in the year when united utilities and industries such as real estate investment trust an quite wellly doing and brought the market to the precipice of another record than we had the brexit risk-off sentiment. settled, it has been the cyclical technology and commodity companies leading the way. big selloff in the defensive which is interesting, too. that is allowing us to churn higher. inch by inch we're getting there. as every day. -- new highs every day. the economy looking that good to be cyclicals for the longer-term? shery: could be an of this rotation mean we could see a breakout from your? michael: that is what people wonder. the range has been so tight market as a move more than 0.5% except for a couple days the last month. are on the edge of their seats saying higher, lower? 2200 might cause a little bit of applause in the s&p. for whatever reason, roun

matt: mike regan joins us now with wrapping up the week for us in taking a look at what happened after janet yellen didn't disrupt the market. boils down to one speech waiting on the edge of their seats four. charlotte was talking about the world interest-rate probability function. a lotascinating to me how of traders are glued to that thing, refreshing it every day. what amazes me is how swiftly that thing can move. a 43% chance of increase as of today. it is a very important signal that everyone is looking at the one of those based on a relatively small market. market on a liquid relative basis compared to the stock market. the take away for me is that it is an important snapshot that we can look at any time but it's a signal written in pencil. that is the important take away from today is that the odds look but another data point, another conflicting speech could send it the other way. i like what you are saying about the safety trade. it is interesting because you look at these groups as the safety trade, defensive industries. it used to be health care but that has kind of an dismi

we are joined by mike regan. we are erasing some gains but still very high levels. are we seeing something of a bubble forming, what are the metrics telling you? obviouslyations are much higher than normal and it is a trend that last year the valuation of the market at 19 -- cap the lid on the stock market as earnings were declining and that this late -- explains the flat market. it is surprising a lot of people on wall street that now we are seeing expansion valuations. the s&p is trading above the year-end target for the strategists that we surveyed and for this time of year that is an unusual thing. it is usually a pretty optimistic group with very optimistic year-end targets and to see the market above that at these valuations is a bit of a surprise to a lot of people. goldman sachs was calling for basically a second year in a row of flat markets because they did not believe that valuations would expand. a little bit of a surprise. the wildcard that throws a monkey wrench in the valuations is interest rates. treasury yields are down 15%. the fortitude for higher

here with insight on with -- which strategy led to the most asset withdrawals industrywide is mike reganking about hedge funds, so which has been the hardest for investors to stomach? >> it focuses on macro, making a bet on the whole country, whether it is on, currencies, and stocks. most of the redemptions have been centered around the longshore at it is strategy, kind of what we -- what we think thinkditionally when you of a hedge fund. matt: that is essentially a hedge fund. >> it is but obviously all strategies can be long and short at times. are talking only about one third of all the assets. there is about $2.3 trillion invested in hedge funds. about one third of that is in long short. say you have $1 billion, you will be 100 and 20% long and maybe your 20% sure and that is your strategy through thick or thin. you can see what a bloodbath of this has been for the longer equity areas. is this a symptom of the bull market? the essentially market neutral , overall, your hedging, is this a symptom of people essentially not wanting to hedge , underperforming around this rally? ,> a long

matt: thank you very much, mike regan. for more of our fast commentary, head to gadf on the bloomberg. scarlet: this is bloomberg. ♪ mark: -- >> we will put americans to work building and modernizing our roads, our bridges, our tunnels, our railways, our ports, our airports. we are way overdue for this, my friends. also secretary clinton promised to improve schools and water systems, expand broadband access and invest in clean energy. added one woman and seven men do is advisory committee. -- to his advisory committee. betsy mccoy, former new york lieutenant governor, and brooke rollins, president and ceo of texas public policy foundation. the international olympic committee says of the more 2000 -- more than two thousand from tests conducted so far at the rio games, none has come up so far positive for banned substances. the ioc says is planning to conduct more than 5000 doping tests during the games and says any positives will be handled by a special division of the court of arbitration for sport's. global news 24 hours

thank you, mike regan. the pimco ceo on where he thinks we are in the credit cycle.to the fed? what will it mean? we will post that to steve englander. this is bloomberg. ♪ jonathan: from new york city for viewers worldwide, this is bloomberg. a down surprise. from lastle change month. treasury yields sliding down seven basis points on a 10 year. joining us with his perspective is mark kiesel the pimco cio of global credit joining us from newport each, california. -- newport each, california. the federal reserve in action all over again? what is your initial view after looking at the numbers? mark: even going into the numbers, the market was only pricing in a 40% chance that the fed was raised this year. with the data, that will go down more. what is interesting is that 10 year treasuries are yielding less than 1.5%. the hedging costs for foreigners has gone up significantly. for foreign investors, japanese and european investors in the treasury market, when they hedge the currency risk, the yields are less than zero. the u.s. treasury market has become less attracti

for more on market expectations, jackson hole remarks plus, mike regan of bloomberg at fly joining usshort end of the curve. >> absolutely. 1.2%,increase, up about the most it gained since about may. for that muchek of the year, part of the underpinning on the equity rally. we did see some volatility on the market. the s&p 500 moved from its high to the low the day, the most we have seen it move since early july and yet the rain still -- range still holds. we have been stuck in the below. range to a little even the volatility did not test the lower end of the range. we could be in store for another quiet week. everyone waiting for friday for the jobs report to see what it means for the possibility of a september rate hike. >> in financials, we could get a movement. what is the meaning for the sector in the s&p? >> it will be an interesting anomaly on. there are two types of investors. for a passive investor, if you nothing is500 index, going to change but if you buy a very bigfunds, changes coming. despite of that tracks the it is realector, estate companies. it will be broken out fro

regan in for neil cavuto. this is "your world." we'll get the democrat's side in a moment. but first, to former governor mike huckabee. governor, good to see you. what did you think about the president using a joint press conference with the prime minister of singapore about the transpacific trade partnership deal to bash trump? >> well, it was really inappropriate, but not that surprising. if you go back four years, it was the same president who said that mitt romney was unfit to be president because he was too extreme. think about that. here we are, four years later, and it's something that the democrats have said about every republican nominee since thomas duley with the exception of eisenhower in 1952. other than that, they've said that about every republican nominee, just pick one. reagan, first bush, second bush. it's not that unusual. >> i just wondered also, governor, about the form. to be using that joint press conference, was that really the appropriate time and place, shall we say, for our president, who is talking about a policy objective, to be coming out and essentially politicking? >> no, it really wasn

regan taking us through the next hour. trish: donald trump is leaving flood ravaged louisiana after visiting franklin graham. you are looking at a live picture, his getting on a plane with mike pence. the charity leading the release efforts, met with homeowners, to escape floodwaters, 40,000 people have been displaced in louisiana. you can see donald trump quite nearly wheels up, moving on to the next location. all this happening, donald trump in louisiana, president obama played golf. and donald trump, to travel to floodwater baton rouge, louisiana. this is our president plays golf, hillary clinton takes a day off, it is friday in august, 40,000 people lost their homes and living -- let's continue to plague our region, just perhaps -- the president and mrs. clinton, could trump be getting the upper hand here as he sticks to message, scripted speeches and humbleness last night. look at this. >> sometimes the heat of debate and a multitude of issues, you don't choose the right words or you say the wrong thing. i have done that and believe it or not, i regret it. trish: new side of trump we haven't seen, he regret some of the passing, and the new management team, paul manafort

regan taking us through the next hour. trish: donald trump is leaving flood ravaged louisiana after visiting franklin graham. you are looking at a live picture, his getting on a plane with mikeleading the release efforts, met with homeowners, to escape floodwaters, 40,000 people have been displaced in louisiana. you can see donald trump quite nearly wheels up, movi