yeah well this ship's going to make it to port said pimco in pimco co-captains willing mr gross roe adding have a cocktail tell the band to stop playing dirge is because you're going to be just fine with him go at home and the band is laid on did you. grab yourself a lifeboat get get out of that sinking ship. well of course he's writing that now and june fourth he sent out a tweet and he wrote then keep smiling and thirty years of bon bull markets have raised returns and spirits now there are doubts we're sticking with bonds as long as the fed does what's wrong with this guy he seems well you know he wrote six months ago in a moment of clarity he was buying gold and then i think he wishes you know inside every bond ball there's a gold bug striving to get out bill and go if he were really on top of things see what immediately liquidate everything and move into a hundred percent going well he also did back in april remember he did say that was the end of the bond bull market so suddenly he's changed his tune i guess he's the one playing on the titanic and he's trying to make everybody feel b

yeah well this ship's going to make it to port said pimco and pimco co-captains willing mr gross wrote adding have a cocktail tell the band to stop playing dirge is because you're going to be just fine with him go at home and the band is laid on did you. grab yourself a lifeboat get get out of that sinking ship. well of course he's writing that now and june fourth he sent out a tweet and he wrote then keep smile and thirty years of bon bull markets have raised returns and spirits now there are doubts we're sticking with bonds as long as the fed does what's wrong with this guy he seems well you know he wrote six months ago in a moment of clarity he was buying gold and then i think he wishes you know inside every bond ball there's a gold bug striving to get out bill and go if he were really on top of things see what immediately liquidate everything and move into a hundred percent well he also did back in april remember he did say that was the end of the bond bull market so suddenly he's changed his tune i guess he's the one playing on the titanic and he's trying to make everybody feel be

. >> and peter from pimco. >> pimco?know you're here in. >> just keep this quiet, bob. >> what are you going to do this in. >> go ahead, let's try it. >> okay, guy, let's see what we're doing here. wait. don't go so far. whew! >> good catch. >> and a better throw. a better throw. >> thank you. >> this girl threw in yankees stadium. remember that. >> all right, some guns. thank you, bob. we'll come back and talk more about the best athlete on wall street. bill. meanwhile, we're watching this market as we approach the close. >> my vote for best athlete on wall street is you. you know how many miles this girl rides her bike in central park? it's a lot. anyway, we're down ten points heading toward the close right now, with about 13 minutes left in the trading session. and we'll take a break, right, and do -- brian bell sbellski s should be buying on 9 dip. we i says we're entering phase two of the bull market and what's it like touring with 9 rolling stones? the stones' old saxophone player joins us later. but not before tak

according to morningstar fund tracker, investors in pimco, the world's largest bond fund, pulled $14.5 billion from the fund in june. the fund fell 2.6% last month - it monthly performance since 2008. morningstar analyst eric jacobson says the fund has an excellent track record and is well managed. "my suspicion is a lot of investors were people who jumped into the fund because it was doing so well before and are now being spooked by volatility. that's not a good reason to buy or sell it, either." the bond funds in general have been hit hard since may, when 10-year treasury note yields hit a low. economic growth around the globe is slowing down. according to the imf's christine lagarde, new risks in the global economy have emerged. among them, the fed's future plans to pull back on stimulus. lagarde claims it's already having a ripple effect on the u.s., china, and brazil. she notes that europe's deepening recession also remains a concern. a new beginning for libor: nyse euronext will take over the administration of libor, the financial industry's benchmark interest rate. libor came in

i saw pimco actually added to treasuries, treasury holdings in the month of june. is that the right move? >> we think the right move is to underweight treasuries. overweight yield product because we think rates will continue to rise. we don't think it will be a blowout, don't think it will be a massacre like 1994. the fed is not trying to slow the economy down. a big difference. they're trying to moon walk out perhaps of this amazing experiment. money supply growing by 350%. not trying to slow the economy down. the rates will continue to loft. but i view it in two regimes. the first regime, we just hit, here we go, tapering, but that's not the same as raising rates. if you look at what bernanke is pointing to, we're a ways away from the number. the actual rate rise probably doesn't happen until 2015. we as a market, given the lengths of time we look at investing, probably won't worry about that for six months. you'll have a six-month plus period of stability in the bond market, maybe a 2.5 to 3% ten year. there are things you can do. >> okay. cliff, thank you very

the outflows were the first across pimco's u.s. funds since december of 2011. talk to mohammad larry about this. coming up, while watching tv may never be the same again, you're about to meet some pretty interesting people. check out some new technology that raises the bar on being interactive. meet the disrupters, a touch cast, right after the break on "squawk box." my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; w

pimco's return fund, the world's biggest, increased their biggest bond fund.o marked the fund's worst performances, down 2.6%. all according to morning star. a final thought from michael. clearly waiting for bernanke this week. after going fairly hawkish in may and reinforcing that in june, he's peddling back a little bit in the last couple of weeks. u.s. yields topped at -- hit 2.75%. is that an upper limit for now? what happens over the next few months? >> i think for next months we're in a range of 2.40 to 275 for ten-year yields. the message will be similar to last week to try to calm down the fears about the fed raising rates and to maybe temper the tapering concerns. however, i think, you know, the market is inclined to lighten up on the fixed income holdings, which built up over the last couple of years. through the summer, we'll see gradual selling interests, taking this towards the top of the range and i think into the autumn would can see yields as high as 3%. the market is inclined in that direction. >> an opportunity for investors to off load? >> t

and pimco posting the weakest month since 2008. >>> and the xbox's gaming ceo jumps ship for zynga to play retooling with friends. >> and the proposed too big to fail banking regulations are to release headlines in a moment. >>> and dunkin' brands are initiated with a buy over at lizzard. >> a kickoff with the markets as the futures are pointing to a slower open as the futures running down, and pimco, the world's largest bond fun falling in june and logging the weakest monthly performance since 2008. and the new york fed president bill dudley is to speak today at 12:30, and we are waiting for reports from ford and gm and chrysler is out. but broadly, jim, people are saying until we get over to the 50-day trading average, it could be a trader's summer. >> yes, that could be a case, carl, but i'm not expecting big things from the earnings, because we have a disputed global picture, and we is what i most worry about. these ceos will give you a forecast and if i were a ceo i would say, we had a dramatic move of interest rates in the end of the quarter, and we don't know what the effect is

liz: bill gross's pimco total return fund suffered record outflows in june. the fund so you a net outflow of $10 billion, wiping out the 3.45 billion it saw from january through april. david: the twins known for battling mark zuckerberg for the facebook ipo for the trust. this trust is exchange traded fund solely tracking bit coins with $20 million worth of shares. stay with us after the bell starts right now. liz: is it me or anybody else out there wrapping their mind around bitcoin? david: despite the queries about it is up and up they are moving forward at least today. liz: let's move forward. paul deet strict, he says, don't change youred's anticipated mov. larry shoafer in the pits of the cme. larry, we were talking with traders in the last hour. they were saying a compilation of bunch of issues from egypt to bill dudley from the new york fed starting to make comments. what did you see and why do you think it happened? >> liz, i think what you said hit the nail on the head. some of it is weak hands right now. we have a lost things coming up especially du

front tonight, bill gross, he's the manager of the world's biggest mutual fund and the founder of pimco. bill, really good to see you. the white house just came out and reacted to the news from detroit. spokesperson for the president telling cnn, i'll quote him, the president and members of the president's senior team continue to closely monitor the situation in detroit. why does this bankruptcy matter? >> well, i think it matters for the country. motown, to use a frayphrase, tot is no town. it's a city in bankruptcy because of mismanagement of local fishes, but i think in part, because of circumstances beyond their control, because of globalization and technological innovation and the vulnerability of our country, of the united states. not just detroit or michigan, to adapt to those changing circumstances. you know, the u.s. is not the industrial giant it once was. detroit was the focal point of that industrialization. it's not the same giant as it once was. the inability of the country to adapt is really the problem going forward. >> when people look at detroit, they say, all right, t

if the total return fund at pimco they say they're buying treasuries in june, would you be a buyer? >> it depends if you back up significantly. i think we're moving to a higher rate threshold. i think next year you will be in the low 3s in terms of the ten-year. if you backed up significantly. i think the fed has distorted interest rates to the tune of 125 basis points back to 3%. we start to approach fair value, that's when we would start to add significantly. i think we're probably going to be in a range for a while little. >> we both know taxable fixed income is where the opportunity is in the wake of all this stuff that we've seen since the end of may. are you seeing opportunities there, high yields, mortgage-backed securities? >> yeah. you know, the thing that's incredible is i think you've done literally 180 degree turn in terms of we were going down the road and we were pretty aggressive about creating distortion in markets, ump moving down the road of creating asset bubbles given how tight spreads are going. it literally has changed significantly so areas like high yield in

interesting story this morning in the journal about how four of the biggest bond monday managers plug pimco's bill gross had really bad quarters as the rates rose. nod good for them or the share holders in those fun. let's go up town to nasdaq where seema mody is following that. >> a lot of individual movers catching wall street. take a look at india's second largest i.t. firms. after two years of disappointing results, the company beating street expectations and the company does derive a significant amount of revenue from north america so the pickup in the u.s. economy has been a big plus for outsourcing firms. web m.d., its turnaround strategy seems to be looking, consensus shares at an 128-month high and speaking of highs, three tech stocks that are at new highs. netflix, prideline, amazon, amazon shares at a record high, up about 15 misover the last six months, and that's one of the reasons we've seen the nasdaq outperform. if you take a look at the year-to-date performance, nasdaq is outperforming the dow and the s&p 500. tyler. >> seema, thank you. >> gold on pace for its largest weekly

back with us to tell us more about it is vito from rbc, and also with us is peter from pimco and gregy're both competing. good to see you. >> good to see you. >> tell us what this is about. how does it work? >> sure. this is to raise funds for pediatric cancer research, memorial sloan-kettering cancer center. rbc became title sponsor last year, raised $1.3 million last year. we're just over $1.1 million this year. hopefully, we'll get donations. it's about 165 athletes from around wall street competing. ten events. there's some running events, 400 meters, 800 meters, 40-yard dash, which we'll have twoth of the athletes running shortly. football toss. bench press. similar events. >> well, let's check in with the athletes then. >> okay. >> let's see. so they're just going to -- just run? >> we're going to -- we're goings to count them down, three, two, one. >> okay. >> and have them sprint to the finish here. >> okay. three, two, one! >> here we go. let's see who wins. >> oh, my god. >> oh. >> whew! >> that was close. >> oh, my god. that was close. but we have a winner. >> yeah. >> by a

wisdom tree is the second largest active etf sponsor behind pimco but you might say our equities becausee own our own indexes, we're not beta. in many senses we're rules based active already. we're delivering an active like experience but i don't think -- it's not necessarily that it's passive versus active. it's that it's transparent versus nontransparent. tax efficient versus nontax efficient. that's why we're benefiting so much. >> do you think down the road the mutual fund industry will have a very hard time keeping up with the etf industry? >> obviously i'm biased. i devoted my whole life to the etf industry. i believe in its success completely. the future of asset management lies within the et f industry and if you are not -- if you as an asset manager do not have an etf platform, you probably will not be a significant player later this century. >> do you see any evidence to this point give the wide range of products and different asset classes that you have of a so-called rotation as rates have backed up and obviously a lot of talk in the last couple weeks about people getting out

it moved the whole thing, which is why people like pimco are so enamored with the bounce in fives. the point of this is, is that it's been afraid of. with all of the talk, they should embrace the fact that equities can survive the 46-basis point run. maybe there's one reason he doesn't like to talk about much -- the duration of the entire u.s. portfolio is close to that five-year maturity, which underperformed, or overperformed, depending on your point of view. so the cost to service the debt is moving higher. many believe that is one of the pillars of these programs. >> yeah, and let's talk about that, anastasia. can the stock market -- will there be a point at which yields on the treasury curve will start to provide too much competition for stocks and we start to see it crimp their style? >> there could be a point, but i don't think we're quite there yet. i think the reality is, as investors we do need to be prepared for higher rates. that period has arrived. it is upon us. so the question is, will the data cooperate? both from the fmoc standpoint, but also have the investors' st

pimco marchs on a long-term path. where are we and where do we go from here?ilosophy in general. most bond investors and institutions are judged on a long time horse son. they're saving for retirement. they're trying to resieve positive returns. the long aol time warner horizon is very important thing to keep in mind. one other thing -- lori: sorry to interrupt you guy, hi, on consumer level if you're taking out a mortgage, this is tricky time to time it out properly. if you're seeing huge swings in interest rate moves, where will it stablize? can you answer that question using the 10-year benchmark? >> we're looking the 10-year treasury to end 2013 between 2.50, 2. off which is not that much different than where it is today -- 2.60. 2014 in the mid 2.70s area. inflation remains quite depressed. eventually the fundamentals will take over what is technically driven back up. lori: are you on board with goldman saks forecast? they're extending the outlook on the 10-year-year-old to 4% by 2016? >> i think i got to be honest say our crystal ball gets pretty clouded

joining us with his thoughts, miles branchle at pimco.iles, good to see you. >> good morning. >> how much does it matter what they do with the sales tax? >> i think it's quite important. it's about the pace of fiscal tightening in japan. and what you've seen, getting a cyclical recovery. there are concerns that this -- no one wants to repeat the mistake japan made before by hiking its skuconsumption tax. that's why you see these articles of abe has a menu of options going forward. one of which is dragging out the increase in sales tax. the other, obviously, is you could have some supplementary budget that softens the economic impact of the sales tax hike in april. >> is there concern -- how much concern should investors have about the structural reform program? >> this is the key for long-term sustainability in japan. what you're seeing is a cyclical upswing. you've had a weaker yen which clearly is positive for the economy. inflation's beginning to pick up partly because of the yen is weaker. you've got better sentiment. in order to get

the pimco total return fund lost 2.64% last month, the biggest one-month drop since september of 2008ngs company nielsen hoel holdings will be the newest member of the s&p 500 replacing sprint nextel after the close on july 8th. majority of sprint's shares are being bought, as you know, by japan's softbank. >>> check ahead for what the markets will look like with the jobs report fast approaching. joining us now is tim holland, portfolio manager and partner at cameral funds. can you explain the last couple of weeks and what we have seen? last week, yesterday described some of these people, i guess richard fisher called them, i don't know, pigs. wild pigs. i think he meant -- >> feral. >> spoiled brats. did the traders try to get out ahead of short-term moves and don't want to be long or maybe want to try to benefit as it goes down a little? but, geez, just the idea that some day we don't do 85 billion, we go down a couple hundred points and the fed comes back, it says, we're sorry, guys, we didn't mean to spoil your parade, what did you make of all of that? >> it was a pretty sharp mov

skittish investments, stocks are just materializing in a big way, but for some bond managers like pimcorkets and abroad funds were caused a lot of pain. some say that the easy money is over, and to make money in the volatile markets in the coming year, they will have to act like macro traders and for example be in the market much more frequently than they want and trimming positions they like in order to save more to buy on the lows and in general the sustained volatility and the lesson from the last couple of years, they say, may mean lower long term returns. bonds are now trending higher which may be an argument to stay put. leon cooperman said he could think of lots of stocks more attractive than the 10-year at the 2.2% yield, but the 10-year is trending higher, guys, and if that continues as the year goes on, maybe it is going to mean that the people miss their moment to get into the equities. >> we were watching it earlier to watch it bounce well above 2.5, and then come back down and consolidate around 2.4. >> yes. it has been a choppy few months and right before cooperman spoke,

a pimco tweet saying inflations must be defended from the lower bond.h china destroying capacity, buy tips he says. >> the market is getting okay and not great earnings. >> bob pisani. >> let's get to rick santelli in chicago to talk more about what the future might hold for the fed. >> this is going to be friday with dan. let's ramble with everything. i love steve liesman. my hat is off to you. he said that i think the successor to ben bernanke in this process is being bungled. let me think whether it's the debt ceiling, tax reform, tax issues, labor issues, the keystone pipeline, i don't know, i think there's not enough bungle to go around. what do you think? >> well the fact they're playing this out in the public arena is totally wrong. it's something that should be done in private where they can make reasoned decisions not biased by somebody saying this is the person we should have as any policy should be. >> i think out in the public should be things like how we're going to work health care, how we're going to work taxes. we don't get that out in t