let's welcome in pimco's bill gross.ad a segment on earlier reacting to the "wall street journal" article about mohammed el-erian's departure from pimco. bill must have heard it. joining us by phone. thank you very much for joining us. i'm assuming you're calling in to react to what you heard from greg zuckerman. or maybe yell at us. >> no, i am, brian. i respect greg. we've been good friends for ten or 15 years, but like the old radio announcer paul harvey said, it's time for the rest of the story. i think he only had half of it. he suggested i think on your program that basically, you know, we were an autocratic type of company and that i needed to share power. you know, what he didn't say and perhaps didn't know was that before mohammed left and probably three months before he left, we presented a plan to the executive committee that was affirmed and about to be carried out that shared responsibility with six deputy cios which we have announced publicly and advertised in the press and the "wall street journal," by the

pimco saw the outflows.ome 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 actually beat its benchmark yet there was stress and there was pressure and they all really felt it. gerri: this is because gross was so super successful coming into that, right? interesting fellow, apparently does yoga in the mornings. doesn't want to be talked to by the hi pa loy in the mornings as you reported. wants to be left alone. idiosyncratic. is this type of a person typically you find at the top of a company? >> that is interesting question. he is a genius. let him be quirky and difficult that is not a big of a deal. i would argue he is 69. at some point he has to show where the next generation will be and handover of power. he doesn't need to necessarily do it right

what happens to pimco? this is major important to our economy.hat caused el-erian's departure, lead to problems, fundamental problems for the company? >> keep in mind they're not doing worst than the rest of the market. done better than others in the bond market. the question will they continue to outperform. i would argue, bill gross and people internally are saying thii, he needs to allow others to operate internally more. if you disagree with bill gross, he gives you a hard time. one of the cases hey you have a little too much of certain bonds in your portfolio, maybe you want to lighten up, bill says buy me more. he can't continue to do that according to people within the firm and outside. liz: pimco, with all its money and many of our viewers who are watching right now probably owned a bond fund there at some point or another, they're going into equities. are they systematically krush here? are they too big to fail. >> let's not go overboard. they're not failing. but potentially will underperform. so far they haven't. the question is about m

>> as you know, pimco is a large global firm.uting to the success, not the least of which who are the new ceo and president, who are extremely capable and who i have worked very closely with for many years. the deputy cio aussies. they all carry a lot of weight on their shoulders. at the end of the day, when there is a critical issue facing the firm, bill will weigh in in a very forceful way and those who disagree do so at their peril. >> if mohammed's the partial was unhealthy for pimco and billing knowledge this month, -- this much, he wanted mohammed's what does pimco's parent, bill gross, the cofounder and chief investment officer, and what to the people he has put in place need to do to ensure this does not happen again? >> this sets up a healthy future for pimco. >> this is unhealthy. how does it make the firm healthy? >> it is difficult for any one individual. to square off on issues. eventually, bill, through both his position and legacy, will wear the other side down. you now have a different composition where you have a

-- as pimco ceo this year, it caught everyone by surprise.t journal report auggests behind-the-scenes conflict created tension. -- they say itas was an unhealthy working atmosphere. you were quoted in this article about the work that you did at pimco. what did you find in your research? >> i was doing a number of different things, but i was coaching a number of the senior executives with the exception of bill gross. getting their 360 feedback reports that they got from their peers, superiors, and so on. i was doing one-on-one work with them. i found that the environment was a pressure cooker. i have a lot of respect for a lot of respect for what i heard and what i saw in terms of her performance, but the environment was a pressure cooker. what i concluded was that it was unhealthy with respect to a significant number of people. they are very talented people at pimco, they have excellent credentials, they are hard-working. there are first-rate professionals, but there was undercurrent theme with almost 100% of the people. they were under a lot

bill gross was the founder of pimco.s very tough when you're an employee, a hired hand, to take on that founder, isn't it? and how can a founder be smart about listening to the opposition or the dispute of an employee? >> bill gross is a genius, no question about it. but he didn't get there by himself. i think that's important to remember. the people around you is what got you there. what we want in a situation like that is for us not to be attacking and not to be hostile. that just doesn't work. the results, being poor is what usually drives that. people fleeing the market, pulling their money out, we're not selling the cars, we get irrational. >> let's turn to the sports world. there's the story out today with new details on the pervasive atmosphere of bullying. a young lineman for the miami dolphins. there's a couple questions that we're posing. as an employee, how do you manage in a tough workplace and as an employer, when it happens under your watch, basically, how do you deal with it. or do you think this is specif

we love talking to people from pimco. you have $2 trillion.iting is on the wall that the bond business isn't going to be as great as it was i don't think. you think? >> we actually feel quite good about bonds. >> thank you. >> thank you. >> doc savage. you ever read doc savage when you were a kid? >> no. >> he had five guys and they all had a special -- there was a girl, too. like fabulous four or something. >> yes, i was into that. >> that's what pimco is apparently like. >>> an avatar star finds himself in a bit of trouble in new york city. details after the break. >>> then, jim kramer, live from the new york stock exchange. we'll talk netflix and its agreement to pay comcast for faster broadband access. "squawk box" coming back right after this short break. take a closer look at your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals

the article painted an unflattering picture of the culture and bill pimco himself.er 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 that is what are your results. for a long time for a guy like bill gross the results were there, so you couldn't hear about those kind of stories. now the results aren't there is much. pimco had a tough

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 take with them? >> i looked them in the eye every day and it was not an issue. >> you wrote a note cutting entitlements, do you still believe that? >> we need to have an honest conversation about that, all the commitments we have made. in californ

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 shoppers are picking up a new car. >> reporter: from 1200 sheets of toilet paper to 50-pound bags of rice, costco has long before the place to buy in bulk at lo

the article recounted the heated tension and 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 opp

a fund manager at pimco weighed in on what the report means. >> numbers were not so strong that theyd about the fed moving too fast. they were strong enough where we have good growth. not great growth. holdse that it will be on for a while in terms of raising rates. it should be relatively good for the bond market. >> and a report by citigroup stockinvestors shifted funds into bonds this week. they take money out of emerging-market stocks. for the 15th straight week. down 7.2% over the last three months. in of the emerging markets the spotlight is turkey. the most important in the markets, the outlook was cut to negative by s&p. s&p says there is a growing risk of a quote hard economic landing. turkey raised its benchmark rates last week. 10% -- s&p is the only one of three ratings firms that does not consider the debt investment grade. speculation that the fed may not taper the bond buying program as much as expected. as far as individual stocks go, shares of linkedin fell today. isy warned that growth slowing down. they are looking to workers overseas to add more to the site . and

behind the scenes infighting at pimco that reportedly forced out mohammed el-erian. we have fox business, charlie gasparino and "barron's" editor, jack otter. charlie, jpmorgan first. >> this is, more or less, i don't know what the stock is doing today. this should be nothing on this. melissa: it is double the amount we heard before. they had said it would be 4,000. it is about 8,000. down about 1%. >> we reported in december they would do additional cuts on the mortgage-backed, in the mortgage market, in the mortgage business and for the simple reason that bond yields are going up. melissa: regulation. >> and regulations are going up and they are going to do it. we point out they're not only one. everybody will do it. these are marginal cuts. this is not a big study of the we did it in december. everybody knew it was coming. they announced -- melissa: jack, what do you think? >> when i refinanced a year ago, guys told me they were working 15, 16, 18 hours a day. they knew this party was over when rates started to go up. i don't think this is a surprise at all. >> jp

managing director at pimco.bringole -- we you a report on how the parent company innotech may be achieving me best profit margins and the industry. ♪ >> welcome back. you are watching holstein." -- you are watching the pulse. hans nichols has the next report. dotsra's storefront italy's streets. rounds flagship -- is rome's flagship store. it helps generate 850 million in sales. subsidiary book just four percent profit. fat is tiny compared to the 45% profit margin that the parent company has a attributed to the dutch subsidiary in the past five years. here in italy, the corporate tax rate is over 30%. the's parent company is world's largest fashion retailer. process -- profits to low tech units, they have saved since 2009. company says it is in full compliance with international tax law. their accountants have worked nearly 20% of the profit to a single dutch subsidiary that employs 1/10 of one percent of their global workforce. accounting keeps the italian taxman from collecting revenues from its countries fas

adam: inside pimco.e top bosses at world's biggest bond fund that drove ceo mohammed el-erian to leave. cheryl: gossip pages. the fda is working on new regulations may have you thinking twice what toppings you pick for your pizza. fox's peter doocy has details on that coming up. we'll be right back. adam: the fda is following rules set by the affordable care act. and they're set to roll out new guidelines that could affect the way you order food. fox news's peter doocy is at domino's pizza in alexander, virginia. don't mess with my pepperoni. >> i'm not going to but listen to this, if your favorite restaurant has more than 20 locations the next time you go out there is a chance on the menu right next to whatever you are deciding between you will see how many calories are in it, whether you like to, whether you care to or not. that is what restaurants are going to have to do to apcomply with the regulation in the affordable care act. and that's a problem for places like dominoes including one here in old

pimco had think that a huge track record in building sizable assets under management, 1.4 trillion eurosly short time. 2013 is more a year of consolidation. but resulting in a record profits we are making in the asset management division, 3.2 billion euros of operating profit, i think that compares very nicely with most other asset managers in the world, and is broadeningimco its profit offers, its extensions, it's product offerings, and it makes it realistic for the next year. >> i cannot mention pimco without mentioning the division of the ceo and co-cio, who will resign in january. an article in "the wall street journal" paints an interesting in light on the management style of bill gross. didn't paint a true reflection of bill gross' management style? many would call it autocratic. >> well, i think there is a lot of speculation in the article. in the end, mohammed is doing something else. he still stays within the allianz corporation, specially tasked as our global economic adviser, and pimco has a high performance culture which has created great returns for its customers and also fo

joining us is the woman instrumental in leading pimco. deputy chief investment officer and this is her first interview since joining pimco. welcome. thank you for joining us. in terms of the risk in the markets, one of the things you are concerned about? , "mind the gap." that arelobal markets up 140%. that is very nice. we are in a transition phase. that is why i call it, "mind the gap." growthe trying to lead three form and not absolute investment. the emerging markets are dealing with tapering and rising rates. do we need more quantitative easing? that is the opposite of the united states. they are trying to taper in a way that is orderly. it is difficult for investors to judge and it is a time when we see the growth getting subdued. what is important is the idea of fragmentation. the fragmentation comes from the long-term themes that you have heard me talk about and from the fact that the world is in a de-synchronization mode with tapering on one side. i think that is what is creating volatility and we guess. >> mind the gap, i love t

and why pimco is bullish on housing. in property. ♪ >> this is "lunch money" on bloomberg television. i am adam johnson. today's moving pictures where the video is the story. a military jet carrying members of the algerian air force and their families crashed. there are conflicting reports as to how many were killed. one report says there was just one survivor out of 103 believed to be on board. the defense ministry is blaming bad weather. protesters in yemen are calling for the resignation of the government following a decision to divide the country into six states. the demonstration coincides with the third anniversary of the revolution, an uprising that forced the president from power. thousands are without power in the south as a strong winter storm barrels toward the east coast. the storm is forecast to leave ice across parts of georgia. be careful out there. in property, mortgage applications in the u.s. fell two percent. refinance applications also fell. bottom line, higher rates are making borrowing more expensiv

well it is but let's look at the two assets being swapped i mean if you're pimco for instance and you're holding out a mortgage backed security yielding four and a half percent say and the fed comes in takes a billion dollars of those off your hands gives you a billion dollars well you're pimco you're not in the business of holding cash so what do you do with it well you've got to go put it to use somewhere and so you will find the next best yielding asset you can buy which might be something you'll in only four point four percent or four point three percent and so on so the more that the fed is out there removing these so-called assets which are really dead instruments from the market it's very good prices it just means that the institutions that they take those from which by the way it's not you and me these are all very big money center and the primary dealers banks in the in the like they have to do something with that money so off they go and they put it to use in the best place they can and if they're in the business of owning debt instruments they just have to buy another one and

when you are in your morning meeting at pimco, is 2014 greater volatility where pimco needs to be more call it vibrant, or is it three yards and a cloud of dust? credit is differentiation. the slowdown in emerging markets will create more economic volatility but ironically that allows policymakers to stay on hold for longer and allow the private sector to recover. that creates a great investment opportunity to find those companies with rising power, with good asset quality, and with growth, and there is many companies out there that are doing quite well. >> speaking of investment opportunities, you did pretty well timing housing market with your own home purchases. we know that you sold your newport beach home in california back in 2006 when you said housing was in a bubble. you've rented for a couple of years and then you bought again in 2012. you recently remodeled their home. looking ahead, what do you see next/ >> we actually like housing. the inventories are at 13-year lows, with equity has improved significantly. the fed came out yesterday and said one and only quarter homes -- e

you should know pimco contributes about 30% of all operating profit overall to allianz.you as soon as we learn more. if they want changes, maybe they could push them through. big story if you have been following the pimco tale. >> hopefully we will be able to talk to them. >>> in the meantime, we are closely monitoring an important battle between big business and the state of arizona. at issue is a bill that would make it legal for business owners to deny customers based on religious beliefs. many say it discriminates against gays and companies like apple are simply not going to stand for it. it is up to the governor to sign it or veto it. scott cohn, is the governor any closer to a decision? >> reporter: well, she is 24 hours closer. we know that. she has until the end of saturday officially to decide whether to sign the bill, veto it or do nothing, in which case it becomes law by default. if it makes you feel any better, here's a tweet from the governor last night. i assure you as always, i will do the right thing for the state of arizona. governor brewer is now back i

pimco 8-12 inches of snow.is what it looks like for them. -- and they picked up 8-12 inches of snow. not so far off the coast. they are dealing with the wind. up to 75 force winds miles per hour. take a close look at our futurecast through overnight into daytime tomorrow stop the wind will increase a bit. orwill stop around 7:00 eight :00 tomorrow night. and notbe quite a dry its production relation in our area. -- and not expecting accumulation in our area. i doubt we will see a problem in d.c. the high tomorrow is a 33-30 eight. your extended out to look. look at the high on tuesday. middle 50's on wednesday. lower 60's of by thursday and friday. >> all right, we will take that. looking pretty good. a robocop remake. arch campbell tells us >> after more than 25 years, -- getp" gets a rebooked a reboot. it starts a guy that is not a lawrence fishburne. gets aclassic "robocop," reboot whether it needs it or not. >> thank you for your cooperation. actor gets turned into robocop thanks to a greedy corporation hea

report playhis jobs ventas of the that one of your colleagues, the ceo of pimco, wrote in an op-ed the 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 think that what matters most labor market and product markets and specifically 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 theirnd be able to raise prices and improve their margins, so until that happens, where do earnings go? great pointt is a because you're right -- overall, the buddies broadly do not have pricing power, but in fact some do. airlines are raising prices, cable companies are rais

blackrock and pimco -- not pimco anymore, but it used to be that they were getting more money than theyat to do with. and they needed to put that work -- that money to work. in jpmorgan is the gatekeeper for the credit market. >> oh. >> so, if these funds want to put their money to work -- they are playing hardball with the guy bringing every high-heeled deal to play. >> that's right. jp morgan holds particular sway right now because there is a search for yield. people are being compelled to push deeper and deeper into the runit bactrim that do not like stocks. the infrastructure is not the same. >> what is your take? what do you think? >> what do i think? >> when you hear that. >> jpmorgan is throwing its weight around. but hey, this is capitalism, right? here is the question. this is ultimately what we're left with after the financial crisis. jpmorgan is a much bigger bank than it was in 2007. jpmorgan has bought their sterns. -- jpmorgann, bought bear stearns. with jpmorgan, i do not know if i can answer this, would jpmorgan be able to do this with impunity if it were not this big? t

we'll be talking to him about that, so much more and, of course, the pimco story.soap opera. used to work there. and forget california, facebook's mark zuckerberg wants to essentially run the world's communications, and that could potentially wipe out a competitive industry along with hundreds of billions of dollars of revenue. who should be scared about what zuckerberg wants to do? you may own stocks of the companies. you've got to stay tuned. ♪ ♪ for over a decade millions have raised their hand for the proven relief of the purple pill. and that relief couldbe in. for many, nexium helps relieve heartburn symptoms from acid reflux disease. find out how you can save at pplepill.com. there is risk of bone fracture and low magnesium levels. side effects mayinclude, abdominal pain, and diarrhea if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exi. avoid if you te clopidogrel. for many, relief is at hand. ask your doctor abouxium. liz: from wall street and frankly main street, still fussing about facebook's $19 billi

let us welcome in bill gross of pimco. bill, listen, obviously you are mostly known for bonds but you are building out pimco's equity business more and more every year. what do you think about that kind of prediction/call? >> well, i think it's much too much. my outlook this morning spoke to markets, stock markets and p.e. ratios and the reason why they go up and down. for the most part, the way i see it fundamentally is that they move based on credit creation. to see a decline like that would simply be, you know, take a mistake on the part of the federal reserve or other central banks to reduce credit. credit is being credited, yes, very slowly at 3% to 4%. we need more of that. but a p.e. ratio of 15 times or 14 times is probably appropriate with this type of credit creating world that we are seeing. >> before a couple weeks ago, i didn't hear a lot about leverage and margin debt. now it seems like that's what i'm hearing about the most. do you think that buyers, whether it's stocks, bonds, gold, whatever it is, are over

. >> and a split picture for two of the world's biggest asset managers, pimco owner allianz suffers. >>> okay, welcome to the thursday edition of "worldwide exchange," plenty to get through today. i'm looking at the russian military exercises down at the ukrainian border, 100,000 troops. >> posturing, 150,000. >> exactly. we'll talk about that. also on today's show qantas lays out plans to cut jobs and grounds some of its fleet after a disappointing set of numbers. we'll get the latest from sydney. >>> as we've been saying the russian flag is raised over the crimea regional parliament building. we'll be in moscow for the latest. >>> and some positive news from retailers stateside, jcpenney swings to a profit in the fourth quarter sending shares higher. how the firm shrugged off the winter weather headwinds. >>> fed chair janet ylen is set to testify before the senate banking committee starting at 10:00 a.m. eastern. yellen's appearance was originally scheduled for february 1th but postponed because of the snowstorm as well as her outlook for the u.s. economy and the effect the weathe

we will see how that pans out, because we want to bring in the deputy chief investment officer at pimcollion under as a fund manager. >> we have somewhat of a goldilocks scenario because the numbers were not so strong that they would cause people to be concerned about the fed moving too fast. they were strong enough that we have good growth, not great growth, but also a fad that is going to be on hold for a while in terms of raising rates. for the bondod market. >> this allows the fed to convey -- tuesday on autopilot with their monetary policy? >> basically we think that the fed is going to deemphasize the unemployment rate, the unemployment rate is coming down because people are leaving the workforce. able or not seeing higher wages, companies are issuing debt into the corporate bond market, but they are not hiring and spending. they are buying their stock back, and they are turning up their balance sheet. we do not have an economy that is taking off, that allows the fed to be patient. >> tell us how this jobs report your into something that coworker mohamed el-erian wrote in an op-ed

there has been a lot of reaction on wall street saying is this good or bad for pimco?that bill gross would be a strong leader, someone who does not brook a lot of dissent. have two people in that top spot? >> that is why el-erian was leaving. and after a while he had enough of bill gross trying to run the company. what is more surprising is that he wrote afterwards how surprised and shocked he was that mohammed left. if you are a jerk to someone for the whole time you are him running the company and you get in huge fights with him in front of the employees, he will probably leave. , i am readys said to go another 40 years. that hee last thing wants to hear. >> he would get close to his next in command. they would be the golden child for a few years and then he would push them away. that is the style of leadership. not is even supposed to speed to bill gross. >> not a morning person. two different personalities. mohamed el-erian is the son editable map and more analytical. -- is the son of a diplomat and more analytical. >> bill gross played baseball through school. gis

he is at pimco. i'm tom keene. scarlet fu is off today. cohen, director of google ideas. the author of the new digital age. out in paperback. your beach read the summer. at&t cutting rates under pressure from t-mobile. at&t is introducing cheaper rates for national calls and text messaging after t-mobile introduced free international text messaging as well. at&t also cutting the price of calls to mobile phones in mexico, canada and the caribbean's. softbank wants to expand into mobile messaging. a mobile messaging service control by south korean company -- a south korean company. .e have 143 million users ibm has pledged to keep more than 3000 jobs in its home state of new york for the next two years. the agreement with the state calls for the company to restore hundreds of positions they cut just last year. -- that's company news is today's company news. optimistic news. >> you drive up 684 and see those pyramid shapes, the headquarters up there. were weedsthere growing in the parking lot. though there is some fragility, they're using cas

broadly by economists that they are looking not just past the fourth quarter -- >> tony crescenzi of pimconing us as well. always a pleasure. were talking about the weather. >> it is freezing out. >> we are getting snow on monday. none of this is good in terms of retail sales numbers or if you are a local business that runs a pizza shop. does this really catch up with the economy, or does it not? >> some activity gets delayed or destroyed. thes thinking about president from 1970's. he grew peanuts in the 1970's. one week in the northeast, thousands of flights were ed. a lot of peanuts were not given out on those airplanes. jimmy carter and others were suffering during that week. certain sales will not be replaced. that activity gets destroyed. you will have a few extra dollars in your pocket so that you might i something else, you might buy two cups of coffee -- buy something else, you might buy two cups of coffee. >> what happens to that business that did not receive the dollars? >> money gets reallocated to different areas. certain things there are needs for. think of the average age of

pimco's the loop, told bettyf officer liu that buybacks are bad for the economy. >> cubbies these areinto the bond market, but they're not spending. they are buying their stock back, and they are turning up their balance sheet. that is not great for growth. " is up next.art ♪ . . >> live from bloomberg headquarters in new york, this is "street smart" with trish regan and adam johnson. >> i'm adam johnson. >> and i'm julie hyman. we are one hour from the close of trade here in the u.s.. opening ceremonies in sochi. sochi,ou have a shot of and elaborate opening ceremony, as has become the custom. even as that was going on, the olympics, a lot of criticism about the readiness of russia. there was also a hijacking attempts on

and why pimco is bullish on housing.ming up in property. ♪ >> let's get you caught up on the action. it is a mixed picture right now. this after the s&p posted its biggest winning streak in more than one year. the s&p is pretty much flat. is up by about 2/10 of one percent after the nasdaq erased its loss for the year yesterday. we are also watching a couple of individual stocks, home depot is planning to add 80,000 seasonal employees, that matches last year's edition no hires for the busiest season, spring is when homeowners try to fix up their homes. we are also watching shares in on the risey are this morning, which will be released tomorrow. we will be back again in 30 minutes. more "lunch money" after the break. ♪ >> this is "lunch money" on bloomberg television. i am adam johnson. today's moving pictures where the video is the story. carrying members of the mountains. there are conflicting reports as to how many were killed. one says there was just one survivor out of 103 believed to be on board. the defense minist

pimco is coming back into the black. the revamp of iberia continues.

. >> your former bosses at pimco have been in the news. they reported disagreements.t was the relationship really like? >> it was very constructive. they worked very well together. i have a lot of respect for both of them. they have a deep bench. they will do great. >> why did you leave? >> to explore running for governor. i had a great experience there. >> according to reports, they disagreed over everything. trading, personnel. overblown. does anybody go back and say steve jobless to demanding a boss? -- jobs was to demanding a boss? no. how much freedom did stock managers really have to make decisions that different russian mark >> a time. different? >> the manager would not go in and start buying greek stocks. the equity managers have full discretion. i look go gross in the eye every day. of au wrote a note tightening cutting entitlements. do you still believe that? to havenk we need an honest conversation. in california, we are on the hook for more than $500 billion of unfunded liabilities. governor brown has not acknowledged the magnitude. we need to have an hon

the cio at pimco is still with us.ey around what yellen says this afternoon is literally what she says. the first time we heard her, we can talk about forward guidance, what she says about jobs, but ultimately the real risk is how she comes over, isn't it? >> how she comes over. and i think it's possible that she is a bit more balanced than people expect. clearly the key things for us are going to be any comments on the emerging market situation as we talk about this location of this, you know, fragmentation in the world with the u.s. moving one way and emerging markets, europe and japan, you know, being in a different part of the terrain, if she wants. so any comments on emerging markets are very important, comments on jobs, clearly unemployment, 6.6% is very close to 6.5%. and clearly on the on recent weakness that we've seen with some of the members. >> i guess the point there being whether it's cyclical weakness or -- >> that's right. is it short-term -- exactly. and what we've seen so far from her is actually clea

pimco's deputy chief investment officer told bloomberg he sees opportunities in that asked market ando exploit the differences between high winter prices where demand is clearly strong and the summer contracts where demand is much lower. he also sees opportunity in gold, which is staging its longest rally since august. >> i think the emerging market demand will come back. it is there. the chinese have been buying a lot of gold. indians bought a little less gold because it is not very pensive for them -- expensive for them because the market demand has gone down. what has changed is the u.s. financial market appetite for is something as volatile as gold. >> it is not just a story of a safe haven demand, but physical demand. gold consumption and production in china has expanded to records. and there is a shifting global demand from last -- from west to east. >> stay with us. for more on gold longest rally since august, we turn now to a moye.-eed recovery is still sluggish. the data we are receiving is still mixed. the market volatility that we have been seeing overall, is that to be exp

i've been trying to get him to come on since he was tweeting about pimco.arl icahn. he claimed he was going to sleep and couldn't do it. >> if he's still awake, give us a call. >> he said half an hour ago he was going to sleep. i think he was dodging me for a while. >> where is he? >> california. >> it's probably 4:00 in the morning there. >> it's time to go to bed. those engineers, those dotcom guys are up late. >> thinking. >> thinking or drinking? >> thinking. >>> uaw appealing the loss of a volkswagen plan the in chattanoo chattanooga. they accuse republican politicians like senator bob corker of interfering in the vote. the union appeal says senator corker's conduct was shameful and undertaken with utter disregard for the rights of the citizens of tennessee. obviously i read in places like "the wall street journal" so people would say that's somehow slammed. but apparently there were a lot of things going for the uaw down here. you had a lot of things in germany for whatever reason. they have things going on over there where it was kind of in their bes

gox which i realized rimes with "squawk box" and pimco's bill gross calls tuesday's "wall street journal, though, where there's smoke there's the go to be a little fire it seems. it's tuesday, february 25th, 2014. "squawk box" begins right now. >> good morning everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. kevin o'leary will be our guest host today and ceo of first data frank bisignano and 8:00 a.m. paul ryan will be our special guest and a big morning for data and erarnings. economists expect about 401,000 homes were sold in the month down about 3% from december and more names from the retail sector are checking into earnings central in the next hour we'll hear from target and hopefully be getting more details on the data breach back in december. many analysts say the company could eliminate its $4 billion share buyback plan. 8:30 eastern hearing from abercrombie & fitch and see how the weather impacted its latest sales quarter from last quarter, we know this has been a big issue for a lot of the

props with pimco weighing on allia allianz. ahold up 4%. the dutch retailer has a big retail presence. the fourth quarter numbers came in a notch above market expectations. that's highlights of some of where we're trading, but sentiment down a little. >> thank you, ross. we'll get over to capetown now, one of my favorite cities and to bronwa nielson. she tells us about her exclusive with the president of south africa, jacob zuma and joins us now with more. >> reporter: emerging markets are out of favor and their currencies are underappreciated across the board. south africa has one of the most volatile currencies in the emerging markets space, fallen some 17% against the u.s. dollar since 2013. many economists here at home say corruption allegations against the ruling party and the mining sector are further fueling this weakness. in a cnbc africa exclusive win sat down with president jacob zuma and asked him what he thought was behind the fall. >> once the dollar is in problems, many currencies are in problems. so it's difficult to say we c

people are reassessing this, changes from pimco all the way on down where they're getting out of emerging markets, fund investors pulling 10 billion a week, five billion a week over and over. that will lead the markets to collapse far to continue. doesn't mean we have to collapse. i don't want to sort of panic n '97 we panicked. american stock market and economy doesn't have to go down with emerging markets. if we go down they have to go down that is the way it works. melissa: what do you think stems the tide? thinking back to all the investment advisors, make sure you're in emerging markets. that is where money to be made. is that turning around now. >> yes. melissa: how do we not go down with that ship. >> we don't. we didn't go down with it in '97. those economies were probably riding on all this capital over the last five to 10 years. that is where the growth was. they had so much money to build and that boosted the economy. now that it is leaving there won't be double-digit or high single growth rates in many emerging markets. money will leave. they're already cheap. they will really