strong climate and culture which would be an enhancement. >> in the article, it mentions -- mohammed area el-erian was trying to institute a more traditional corporate structure, and bill gross was not as favorable to that view. do you know what he was trying to do? >> that actually surprises me, because when i was working there, bill thompson was the ceo. i thought pimco had done an excellent job of striking the balance between being entrepreneurial and putting in professional management systems. they were not fully del valle, but they have gone a lot further than other firms i have seen in the financial space. it sounds like mohamed el-erian was continuing the initiative that bill thompson had put together. my understanding was that bill gross had basically gone along with l thompson on this. i think what is different now, what you read about malcolm is the stress they were all under when the performance is not there. then a lot of these problems emerged, would performance is high, a lot of these things can be swept under the rug, or minimized. when things start unraveling cover you start to loo

summer a huge battle began between the heads of the world's largest bond firm, bill gross and mohammed el-erian. we look at the turmoil from the author of the article that unveiled it all. david: right on front page of "the wall street journal." a heck of a article. >>> companies making a lot more @n profits, you know that, but they're passing on less than that profit to investors in the form of dividend. that may be about to change though. we have the story where and how much certain sectors are about to up the ante big-time. liz: we want to hear from you. so billionaire carl icahn talked to us last night on this show about his growing battle with ebay among other companies. does icahn help or hurt the companies he targets as an activist? tweet us @fbnatb. do your homework first. look at the stock since he got involved and what happened afterwards. we would love to hear from you. ♪ ♪ [ bell rging, applause ] five tech ocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a mark cap... of at least 50 billion... are up on the day. 12 w-volume stocks... breaking

would you still describe mohammed el erian as a friend? >> he's always been a good friend. n, his wife and my wife joined together in terms of philanthropic activities. we see them at their home with their daughter. mohammed has been very private since his resignation. i wish he hadn't been private. but in terms of our friendship, yes. like i described about a month ago on another station, you know, mohammed was hired twice by the executive committee and by myself, so if we hadn't have been friends the first time, the second time in terms of his coming back, you know, wouldn't have been made possible. to my way of thinking, the competitive atmosphere that exists at pimco and i would admit to that, it is an atmosphere that also existed between mohammed and myself in terms of ideas. but by no means was any one of us dominant. we simply were exercising our intellect not just between ourselves but between other members of the investment committee. i would like to have greg zuckerman come out and sit on our investment committee to see exactly the atmosphere that exists at pimco a

that was the moment you heard mohammed el-erian was out. what is the real story? what is growing on behind the scenes? did we learn more about that today? >> bottom line, thanks to the journal story it doesn't make bill gross look very good. i don't think el-erian was forced out, just he couldn't take it anymore. >> anybody that works there, knows bill gross, i'm not friends with bill gross, i don't know him, might have talked to him once in my life. stories of people that work with him this guy sin credibly difficult boss. to survive, he will never retire. melissa: he literally will never retire. >> until he is dead, right. melissa: yeah. >> we should point out mohammed el-erian, didn't he manages a portfolio that did pretty lousy? his returns on that global, something, something portfolio he was managing -- melissa: i don't have the off the top of my head. >> i do. he did have no the returns. he was not doing great. i will tell you when it comes down to it, bill gross is a very difficult guy -- melissa: they were fighting. it plays out like a marriage. >> look a

looking at video. >>> tensions between california based pimco cofounder bill gross and mohammed el-erianrters got so so tense they fought in front of colleagues with several curse words flying between the two men. pimco announced el-erian would leave the firm to write a book and spend more time with his family. >>> finally the loss lo economy is getting a shot in the arm as the convention center booked 29 events. big increase in since 2013. firefighter and engineering conferences and more expected to boost visitor numbers and help economic growth. 10 new hotels are expected to open this year in l.a. that is the minute. adam: ahead of public rollout of google glass according to a new report from reuters. at least eight states are considering restrictions on using that new technology when you're driving. certain groups are concerned google glass will distract drivers and cause serious accidents. now the tech giant is reportedly trying to convince legislators in illinois, delaware and missouri that it isn't necessary to regulate the use of glass behind the wheel because the cell phone and r

mohammed el-erian didn't really feel the impact. lot came from founder bill gross who liken to apple founder steve jobs. can be a difficult person but a genius too. the results have been remarkable over the years in terms of production and invests. >> yes. >> so that didn't affect mohammed he will airy ran until past year the market came under pressure and he felt some of the heat and -- gerri: talk about what happened at pimco's biggest fund, pimco total return had a very difficult time during the bond seeloff. gross was forced to talk about a it publicly. a lot of maya cull passes. -- mea culpas. what was going on ensued the doors of the firm on the west coast? >> newport beach, california. pimco saw the outflows. some people said internally said, not a big deal, we had so much money coming into the funds. they manage almost $2 trillion. a lot of money came in. it will come out. other people felt pressure. in general they had to figure out how to deal with it. the fund underperformed relative to some of the competitors but actuall

personal clashes between pimco cofounder bill gross and his departing co-chief executive officer, mohamed el-erian. gross disputed the characterizations of the article, saying el-erian's disagreement over his business plan for pimco was a factor for el-erian's resignation and not his style of management. >> two months before he resigned he basically told the executive committee he thought it was a good plan, an excellent plan, but that he wasn't the man to carry it forward. so all of this discourse about -- from my standpoint and the conflict between mohamed and myself is overblown. >> el-erian, who will stay on with pimco's parent company, that's the german insurer alliance did not respond to requests for a comments. >>> ukraine is now in a financial crisis, its economy paralyzed by those massive protests that ended in bloodshed last week. as the nation's leadership appeals to the international community for a $35 billion bailout its citizens now are shocked to find out that the former president lived a secret life of extravagance and oppulence. >> reporter: ten miles outside the center of kiev,

new "wall street journal" article exposes the showdown at pimco between bill gross and mohammed el-erianarently got very spirited out there, jane. >> yeah. this is l.a. down in the o.c. you're supposed to be all laid back. >> you're supposed to be chill. >> this is like the wall street version of charles and diana breaking up. i'm telling you, charles is not looking good right here. i say you could take it two ways. if bill gross really is as big a jerk as this article makes him out to believe, he's always been a very nice man to me but i don't work for him, either you want to take your money away from him or you think that's exactly the guy i want fighting for my money. could go either way. >> you have two alpha males butting heads. you have a very strong founder who is not ready to leave and not ready to really share power with a very powerful call him protege but now essentially has become his rival. this is the guy who coined a number of very famous phrases including phrases we all know and love these days. bottom line is this was almost ichb ta inevitable. >> the new normal is the p

" report detailing the hostile relationship between pimco co-chief executives bill gross and mohamed el-erian which culminated in el-erian's resz egg nation. now the "new york times" are reporting pimco's parent company are concerned and they are urging the firm to act on personnel issues at pimco to make sure that there are no more executive defections. >>> delta airlines making some big changes to its frequent flyer program. beginning next january, members of delta sky miles will rack up free miles and other rewards based on how much they pay for tickets, not how many miles are traveled. this could be good news for big-spending, first-class flyers and business travelers who often book flights just days ahead of a trip when tickets are the most expensive. >>> well, we know flying's expensive. so is buying a new car. but there's a growing trend in the automotive industry with people buying their cars through third parties at a preset, for haggle price. and it's the reason that auto sales are climbing at costco. yes, costco. phil lebeau explains why the warehouse retailer is where more shopper

. >> perhaps this jobs report plays -- that one of your colleagues, mohamed el-erian, the ceo of pimcoin an op-ed the other day, when he talked about the jobs report, let me refer you a portion of that "financial times" op-ed. he said -- >> would you agree with your ceo on this? >> yes, we would agree. he thinks that what matters most is slack in the labor market and product markets and specifically wages and inflation. the fed wants to see higher inflation. there are some parts of the economy that are doing well and some that are not doing well but overall the economy wants to see more jobs, the fed wants more jobs, and we want inflation higher, so that allows the fed to be on hold, which means the employment report is probably less important as inflation going forward. >> as you say, companies want to see more inflation, right, they want to have more pricing power here and be able to raise their prices and improve their margins, so until that happens, where do earnings go? >> well, that is a great point because you're right -- overall, the buddies broadly do not have pricing power, b

mohamed el-erian left of reported disagreements.n you were there, what was their relationship like? >> it was very constructive. they worked well together and i work closely with both of them and i have respect for both of them. pimco is a great firm with a great bench. >> why did you leave? >> to explore running for governor of california? i had a great experience there. >> according to reports, they disagreed over everything i'm a trading, personnel, new products. >> i don't think that's true. i think this is overblown. did anyone go back and say steve jobs was too demanding a boss? bill gross has a 40 year investment track record and no one should question that. >> how much freedom did fund managers have to make decisions that differed from his new? >> a ton, the equity managers that work for me had complete control over their portfolios. pimco is worried about greece, then equity manager would not start buying greek stocks. short of extreme positions, the equity managers have full discretion. >> does he mind of people make i can

i don't on -- at this point -- >> and they struggle with equities. >> and mohamed el-erian gave analyst grief about calling the market three years ago as being the wedge and it shouldn't be here. also i gave him a lot of grief about gross got out of the all the bonds and they moved another -- i don't know how much and they were they said we were in bonds somewhere else where we participated in that move. but it hasn't gone as smoothly with partnershipco in the last couple of years with this weird bond environment that it has the previous 36 years or whatever it was. so there's probably some carpeting and grousing. we like them both. we're friends with both of them. they're both great guys. >> and great investors, too. >> bill is a great vet, a golfer. >> mohamed, too. >> and he has lousy teams that he loves. >> okay. we will continue this conversation, but when we come back, the identity of the person mind the twitter account gselevator. once thought to be a rogue goldman sachs employee turns out, well, he wasn't really in the building. we'll talk about that when we come back. and jon f

. >> tell us how this jobs report your into something that coworker mohamed el-erian wrote in an op-ed remain one of the most widely followed data releases. unless analyst get there report expect aong, we will report as a standalone to have a diminishing role as a notable mover of asset prices and policies. are you agree? >> we do agree. worries us most is slack in the labor market and product market. specifically wages and inflation. the fed wants to see higher inflation. there are some parts of the economy that are doing well, and some that are not, but overall the economy wants to see more jobs, the fed wants more jobs, and we want inflation higher. that allows the fed to be on hold, which means that the employment report is probably less than -- less important than inflation going forward. >> companies want to have more pricing power here, and be able to raise your prices and improve their margins. until that happens, where do earnings go? >> that is a great point, because you're right about overall companies broadly do not have pricing power. but in fact, some do. airlines are rai

mohamed el-erian is the son editable map and more analytical. -- is the son of a diplomat and more analyticalplayed baseball through school. gis seem very angry. they want to kill other people. larry ellison, he is like a meditating yogi as well. steve jobs. , yogi.ad dan loebs' >> all of these super competitive alpha males are also yogis. >> they need to calm down somehow. >> if they did not meditate, we pain.be in a world of >> facebook has gotten rid of its e-mail service. they have notified users that any mail that was sent to their wasess, which you remember automatically set up. none of us actually subscribed to have our new accounts, that will be redirected to the e-mail associated. another sign that facebook just could not win the messaging wars what's app.bought > >> it is surprising that this did not catch on, right? you did not have to do different apps. is like using dvds. who uses e-mail? maybe we occasionally do. we are of a different age than the kids. the kids don't use e-mail. >> i use e-mail. i think i use it more than you. alluded, when they first introduced that thing, eve

you will also get his revelation this week that a rift between bill gross and mohamed el-erian may have> it is 56 minutes past the hour, and that means bloomer television is on the market. i'm scarlet fu. exchange traded funds are tracking developing markets that led outflows into etf's yesterday with almost $200 million of capital exiting the funds. investors have withdrawn $11.5 billion from emerging market etf's so far this year. about oneout -- plus, billion of that coming in the last five days alone. cristina alesci spoke with guests about frontier markets earlier this week. take a listen. >> emerging markets, that is a misleading phrase, really. right now, 85% of the people on the globe live in the emerging markets. i did not say> minority markets. gdpll right, but 55% of the of the world is in the emerging markets. you cannot just ignore them. -- ignore them because they are small countries. these are emerging as economic powerhouses, like china. there will still be a sin downs and the fluctuations might be greater in some emerging markets, but in the end, the greatest growth wil

some revelations about what cause the departure of pimco ceo mohamed el-erian. according to the wall street journal, his relationship with cofounder bill gross deteriorated in the last year. at one point, the two squared off in front of two dozen colleagues because of a disagreement over bill gross's management style. gross has admitted he can be difficult to work with. maybe he is a little bit like me, eric. will cut, jpmorgan about 8000 jobs later this year. what is the main problem? falling demand for refinancing. since the start of the year, jpmorgan has announced more than 24,000 cuts in those two units. that is a serious number. and all those holiday discounts did not do much for macy's. the department store chain in the u.s. reported fourth-quarter sales that missed estimates. macy's earnings to do better than expected, thanks to lower costs associated with job cuts. and about this, if macy's did not get it done over christmas, what does that mean for jcpenney? >> good question. in the meantime, another top story this morning, one of the world biggest it

the jobs report that comes out friday, mohamed el-erian writing that it is becoming less and less importantll become a widely followed releases, but unless analyst at the forecast really wrong, we should expect it to a diminishing role as a mover of prices and policies. >> i think the markets pay attention to it. the unemployment rate has a diminished importance. it has been falling much faster than expected. in terms of gauging the economy in real time, i think looking at non-foreign payrolls is one of the best indicators. us.ichelle meyer's with i will talk to her about housing in the next hour. >> speaking of the fed, they threw a going away party for been burning goal -- ben bernanke. the theme was baseball. they made up these ben bernanke baseball cards. dressed in a nationals uniform. on the back are his stats. chaired 86 fomc meetings. " 60 minutes"n twice. >> that is cool. i love that. actually kind of fitting because today is the first day of spring training. >> i wrote my first article today on baseball for 2014. i am pleased to report the yankees infield looks shaky. >> after hea

former pimco ceo mohammed el-erian left the firm in january leaving the financial word to speculate asy. and today "the wall street journal" reporting that personal clashes with founder bill gross drove el-erian away. the article painted an unflattering picture of the culture and bill pimco himself. earlier gross said the story was overblown and down played the report. it's not the first time someone who is mega successful has been accused of being a jerk. steve jobs, in fact, comes to mind in in case. here to weigh in with more, jeff cox, finance eder to of cnbc.com. he want to get thoughts from our financial, but, jeff, first your take. is this the flip side of the success coin? >> well, kelly, i think it was harry truman who said if you want a friend, get a dog. i think that that's very true in politics. it's also very true in business. when you get into the high finance world, a lot of ceos have a reputation for being tough managers. to me managing is always about three words. it's about setting the tone. and how you act as a manager is going to set the tone. now, the other part of

grossd el-erian and will s, "the wall street journal" reporting, saying it came to a head last summer. what is your response to that? >> mohamedand said good luck. last three months i was a rotating member on the investment committee. i was in the room. there was tremendous deference to each other, each relying on each other to make decisions. that is how it has been at pimco , relying on each other to make decisions in the interest of the client. >> what does it mean that mohamed is still there? >> it is a wind down. hodge, already got doug including a lot of the duties that mohamed would be doing. >> he is in wind-down? >> i cannot tell you technically what that means, but it involves the new members you have heard about. i'm also on the investment committee. i have the great honor of serving clients on the committee to help making decisions. all of us nerds on the trade floor trying to find the best trade ideas. >> tony crescenzi, thanks. ♪ >> if you missed everything that happened, we will get you caught up right now. top 10 stocks. number 10, monster beverage. that beatrter sales analysts's to mitts. results seem to valid