from pimco. >> thank you. >> thank you. our pleasure. >> nice to be here. >> i want to know where the hair went. >> that was beautiful hair. i said that to you. >> the beard. >> i'm not just saying it now because they're probably still listening. i actually said to you earlier in the day, man, that was beautiful hair. >> two people from the shenandoah valley. paul is one. no, not me. patsy cline. >>> now it is time for a story that is too bizarre to be made up. iranian facebook fakers reportedly spying on the u.s. government. we'll have more on that in a second. >>> and later, the one thing america can do right now that could add up to 300,000 new jobs to the economy. "street signs" will be right back. x you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in elect

investors depend on pimco. as easily ast come it has in the past.n in terms of our organization. we are a better company now than we were three or four months ago. there's much more focus on the bottoms up, types of rewards that pimco has provided over the years. and little bit less in terms of the top-down allocation. it's pretty much right where we want to be. the questions were authorized because mohammed has left. those questions will be answered and have been answered in the past few months. they will be answered as we move along. >> we thank you for joining us. they call them the king of the bond market. bill gross of pimco. mba's you end up bailing on banking. -- who end up bailing on banking. what they're leaving for. you are watching "market makers" on bloomberg television. ♪ >> you're watching "market makers." i'm erik schatzker, here with olivia sterns. buy a has agreed to mobile messaging app that lets users send messages that self-destruct at a specific time. no word on how much yahoo! is paying. chat settle government claims that it di

paul mcculley returns to pimco.t. ♪ >> this is bloomberg let's get you" some company news now from the files of "bloomberg west." mosque unveiled the dragon the two spaceship at his space x headquarters near los angeles. apple has lost a last ditch effort to avoid in e-book pricing trial. a lower court judge concluded that apple violated antitrust laws in its contract with e-book publishers. the trial is set to begin in july. google is acknowledging the lack of diversity in its workforce. pressure silicon valley to increase the number of women and minorities that are hired. 91% of its staff is either white or asian. >> thanks so much, scarlet. it is been a very good 31 days for legendary bond investor bill gross. welcomes back to pimco, paul mcculley. has provided thought-provoking wisdom. he joins us now from newport beach. joining also is our chief economic correspondent michael mckee. what will you do for mr. gross? >> first, good morning tom and mike. good to see you. tom, as you know me for many years, i like t

headlines out of pimco.re retiring in 2010 is rejoining pimco as -- this time serving on the invest committee taking on a newly created role at pimco's chief economist. sort of dates back to a different time when we had pimco and paul on a lot to talk about a much different investing environment. >> he had a great reputation. clearly pimco is still doing damage control and interesting to see what role he takes on. >> let's get to "squawk on the tweet." google considering buying dropcam, a ect canned camera start-up bringing us to this morning's "squawk on the tweet." google is already keeping its eye on you. what could it pull off with the help of a cam? no more stealing cookies from the cookie jar. help wanted ads to monitor users the via dropcam. and including other privacy questions from earlier. >> hallway view they'll do with it. navigate any of your friends' hallways before going over to their house. >> this was started to keep a neighborhood dog from using the restroom on the founder's lawn. you could

pimco's andrew balls joins us after the break. ♪ has suffered its worst mining disaster.ou're looking at live pictures from the rescue effort to try to save miners still underground. joining us is executive producer of bloomberg turkey. tell us about the number of deaths. i gather they keep on rising. >> so far, 283 people have been -- have died. that number is expected to rise. according to government officials there could be around 150 miners still trapped inside. that is an agonizing wait for the friends and family of those still missing. rescue efforts are ongoing. a few hours ago the energy minister said there are around 500 rescue workers at the scene and no more is needed as it creates chaos. min, what is the reaction in turkey to this disaster? >> this has created angry protest. yesterday as prime minister avalon emerged from his car, he was booed by protesters. he had been criticized for being insensitive at a press conference yesterday. he said explosions like these happen all the time. it is not like these don't happen elsewhere in the world. then he started ra

and that is what pimco does.we have to remember it took pimco 39 years to go from zero to a trillion. it took over three years to go to 30 trillion. you have to put the stock in perspective. >> mohammed, good to see you, you look well and rested. we look forward to seeing you again. >> general electric's ceo was making the rounds today saying he is confident his deal to buy allstum will get done, offering $17 billion in cash for the energy division of this french engineering company. he met with the french president and said that the assets will fit right in at ge. >>> i think it is an acquisition that is very consistent with our execution skills, our ability to drive synergies. it is in a market we understand. i think it has relatively low execution risks for investors. it is going to increase our earnings growth rate and it is going to increase the industrial mix up to 75% of our earnings by 2016. >> now, despite that positive pitch, this is not a done deal just yet. allstom gave siemens, the german industrial

the cfa playing down the issues that they've had at pimco. how much of this do you think is to do with concern about the management of pimco itself in order of the rotation? >> what i'm hearing from allianz, they're quite comfortable with the situation they're in right now. there was a shock to the management. what happened at their top management at pimco. right now they have a new management team in place. of course, the outflows are not great. looking at the sheer numbers, only judged by asset undermanagement from third party, that 21.6 or 21. billion figure makes up 2% of those assets on the management from third parties. but perhaps take a listen as well, what the cfo of allianz had to say on that question whether it's down to management problems or whether it's general market trend that the former cash cow is having a little bit of a tough time right now. >> i think the press makes it much bigger than it really is. and our outflows, i think, there are two points to consider. one, compared to q4 where we had to really -- some real outflo

different with the new pimco strategy and new i have been in nine of these.nk the process has worked well. i want to emphasize the difference on our plates. we use robust and free flowing discussion. both robust and very free-flowing. at the end of the three days we ended up with an organic sense of this. we feel very confident about it. >> what does this mean for the central banks of the world? >> they will have to tread very carefully once they begin to hike. for example, over the next 3-5 years the fed and bank of england will start to hike rates. our view is they will do it at a very slow paced. they will not get the policy rates up to four percent that they expect. new investor pull from yesterday. neutralhan what the new would suggest. >> i want to get your take on bubbles. are they more likely to occur or less likely to occur? >> that is a great point. in essence of monetary policy is to keep the game going, to keep the global economy growing at whatever pace it is. i think policy makers in general feel the way to deal with pockets in the credit market

backly, pimco is getting -- trying to restore some of its lost glory.mccully.inging in paul le pimco is trying to bolster its management. >> this is a huge deal. this guy is influential as an economist. he has influence at jackson hole. oftenyellen quotes them and particularly his focus on crisis in shock. redemptions pimco has seen come upwards of 20% and some of the funds, that is crisis and they need him. >> this is hugely accepted by international shareholders at allianz. >> bill gross needs to grow his mustache back, that is the problem. >> coming up, toll brothers earnings are out -- higher prices lead a rise in profits, what does that say about new housing, next? this is "bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. ♪ >> i need ranger tickets. we need--canadiens, tickets. we will listen to a guest we he's the most important guy in the planet if you need tickets to madison square garden. he will be with us live at 10:00 a.m. on market makers

where do you guys at pimco see the demand coming from?well, global central banks remember there's still $12 trillion in saets and half the reserved assets are kept in dollars, their long-term liability managers that have to concern themselves about future liabilities and they have been buyers on the tick up in rates. don't forget yields did move up a lot last year, and remember also, people question the $64,000 question for 2014 are why are yields falling? a lot of that has to do with the fact that the economy just hasn't been as strong as people expected. also, power yields falling in the face of tapering? everyone thought once the fed tapered that yields would rise, but remember the treasury department, uncle sam, is says tapering. the budget deficit a few years ago is $1.4 trillion. this year about a half trillion. next year about $400 billion. that means fewer treasuries are big issued. >> the fed is buying mortgage-backed securities, it hasn't been as strong as most expected. that means americans aren't object teenaging news mortgage

still to come, pimco's new neutral.o will join us in studio still ahead right after this. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ my mom works at ge. when we arrived at our hotel in new york, the porter was so incredibly careful careless with our bags. and the room they gave us, it was beautiful. a broom closet. but the best part, / worst part, was the shower. my wife drying herself with the egyptian cotton towels, shower curtain defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. with millions of reviews, a visit to tripadvisor makes any destination better. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration in

now pimco in a newly created role of chief economist.alking exclusively to paul and also to him pimco's bill gross. >>> in order to keep down gasoline prices and valiant's $150 billion mistake, at least according to herb greenberg. all of that at the top of the hour. make sure you join us for "street signs." hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ my mom works at ge. you need to see this. show 'em the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam soun

we heard a similar thing from pimco.e data might be the fulcrum on which markets job this -- judge this job report. the wage number combines the two factors that the fed is looking at, it's dual mandate of inflation and unemployment. >> that is exactly right. n, why are we not seeing that wage pressure? >> they are running ahead of inflation. we have a lot of slack in the economy. that is keeping dollar pressure on prices and wage growth. more and more of that slack is going back to work. that should put up or pressure on -- put pressure on wages. we are seeing an increase in real wages in the last year. >> i was just going to add to n was saying. it is interesting to see the bond market reaction on the shorter and. you will not have inflation pressure. perhaps they are overreacting a little bit here. >> peter, what about what you believe? how are the republicans going to react? to something like this does this make it harder for them to criticize the white house? some veryquires careful language writing in the statement

>> i don't speak to what happened within pimco, kelly. i don't speak to what it's like to invest in emerging markets, and it's a fairly volatile after thought. >> how could we not ask mohammed, do you like u.s. stocks right here? what do you like, anything? >> so i generally think that this is a good time to take some bets off the table. i think the geopolitical situation in ukraine is much more serious than what the market realizes, that it's difficult to control things on the ground. i also think we've come a long way for an economy that's so sluggish, so you want -- it doesn't mean you exit markets completely. get some dry powder because we have volatility ahead of us. >> thanks for sure. mohammed, always good to see you. >> thank you. >> we have some breaking news, speaking of california, on the los angeles clippers. dom, what's the lateest? >> guys, what's happening here is the nba has named former citigroup chairman and former time warner chairman and ceo dick parsons tonight interim ceo of the los angeles clippers. that's effective

also today, pimco, paul mcculley has returned to pimco as chief economist. says the world is not going upside down and people shouldn't panic, though they should be conscious. we have a story summing up at renewed calls for ending the u.s. ban on exporting oil. that has captured our reader's attention. lot of comments and traffic on that. >> you need update the picture of of mucculley because he doesn't look like jerry garcia. >> all our file photos weren't right. >> allan, you're on television right now. a lot of people just heard that. >> we wonder who's naval mcculley was contemplating in those days. >> mcculley oil markets. a busy day for you guys. >>> when we come bab it is not all glitz and glam foruxury retailers as the demand for luxury goods appears to be declining. why the shine nigmight be weari off some of the luxury names like kors and nordstrom. >>> we'll soon have a huge -- and i mean huge inheritance transfer. cnbc's wealth reporter robert frank will join us with who gets what coming. up. in a world that's changing faster than ever, we believ

pimco will be on our show and explain. also retail turnaround that knocks the cover off the shorts.ropping stat that shows why the president needs to take his own advice and go get a re-fi. make sure you join us for an exciting edition of "street signs" at the top of the hour. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools a

the pimco take.@guyjohnsontv. ♪ plunge.aribas shares steve ballmer go search of long-term value as he crushes the competition, $2 billion large for the los angeles clippers. mr. undergraduate, your table manners are a disgrace. good morning, everyone, this is what bloomberg surveillance." it is friday, may 30. john amy as always is scarlet fu and adam johnson -- joining me as always is scarlet fu and adam johnson. every interview begins with the new york rangers. >> that's all you need to know. they won. >onto the stanley cup. -- kings. get the u.k. --d news in the consumer confidence rising to a 16 month high on improving economy. home prices are

pimco founder and cio bill gross will be here.ey, always interestingch don't miss it right here at 2:00 p.m. eastern time right here on estines. >> thanks very much for joining us on the show today. "closing bell" is coming up next. do not change the channel. see you same time tomorrow. >>> welcome to "closing bell." i'm kelly evans here at the new york stock exchange. >> i'm bill griffith. we are watching the markets kind of hovering at this point. we are close to all-time highs. of course, for the s&p, any gain for the s&p would be a new closing high. the dow needs roughly 40 points right now to the upside to achieve a closing high, but we're down nine right now. >> yeah. i mean, again, this would be the third day in a row that we close at a record high for the s&p. we'll see what happens. also a big day on "closing bell." a couple of excluve

shane, to you, are bonds just not the place to be, or is pimco not the place to be?eneral. you're at zero interest rates, so jumping out of a basement you can't get hurt, but sooner or later the elevator floor's going to start hiking up. gerri: great metaphor. veronica, i know a lot of people don't want to get out of bonds. as you said, people are kind of stuck in that 2007 mindset and can't get beyond it, but there's real danger there. >> there is danger because over time you're not going to beat inflation. your money, what costs, you know, $50 today is going to cost $100 ten years from now or even more, so you've got to be in the market to be making some of that money so you can pay for those goods and services later on, be able to afford it. gerri: john, what do you say about bonds? you know, this covers a huge territory, and i'm asking as if it's one product, and it's not. there are treasuries, there are corporate, there's high yield, i could go on and on, but i think people used to lead the asset class. >> i think you're absolutely right. it's an asset class, an

pimco has been looking all over for a replacement for the former right-hand man.ave found somebody. we will tell you more when we return. and a big day for nintendo. they are trying to turn their fortunes around. the latest installment of the legendary franchise. who will succeed? we'll find out. ♪ .. but the s&p begins at another record high even though futures are opening slightly lower. authorities say the french bank violated u.s. sanctions by doing business with iran. nintendo is hoping super mario can be super once more. the video game company hopes to jumpstart sales when it releases mario kart eight in the u.s. today. themed al area unexpectedly left his role as ceo. paul macauley has been rehired. he spoke on bloomberg surveillance, declaring a victory on the board against inflation. wonderful -- -- we we won the war against inflation. actually you could have a time of reasonably low volatility. >> for more on his newfound role i am joined by sheila. hashis the third time he been hired? people were anxious after mohamed el-erian in january he left a big h

pimco said executive is returning to the firm as a chief economist.s previously the head of one of their group; the -- and left. brooklyn's economy outpaced new york city. the number drops in brooklyn grew 20%. that is a look at some of the headlines. back to you. >> thank you carol massar. a new biodegradable cup is called loliware. it won a jell-o mold competition. as ants are made alternative to disposable cups. andunder chelsea briganti director of sales jennifer love join me now. great to have you both here. >> we are so excited. >> what exactly -- this is an edible cup. >> it is a collection of biodegradable and edible cups. we have for you a little drink. with a springtime lemonade mint in a citrus cup. the cup is truly biodegradable. biodegradable products are sometimes -- they do not biodegrade properly. they have bpa. , vegan, is bpa-free all-natural. it is a replacement. >> gluten-free? >> everything. >> let's start with this idea. you enter a contest. chelsea enters a contest and they use the jell-o mold concept as a material. not as a foo

and back at pimco, but his

moment, pimco shifted a few days ago. some form of old normal, good economic growth. better job growth. alan krueger teaches normal and nonnormal economics at princeton and joins us to give us perspective. announcement, this idea of a gloomy view of the economy. baby we get back to some form of normal. let's start with this idea. where is normal? >> i think normal is the on implement rate back down to five percent. >> under five? we are not there yet. >> but we are heading in that direction. washingtonough for to be patient on and let it migrate down or do we need a more -- do we need more stimulus? >> what we need are targeted efforts to most of your problems. which is long-term unemployed men. about the rapid decline in the unemployed rate. so much so that the fed has dropped it as a measure that it focuses on. are we still writing that off as an incomplete read on the labor economy? it does reflect a broader improvement. >> it is still one of our single best indicators. you look at the whole portfolio and you need to l

coming up, pimco called it the roach motel dynamic.ook at investor appetite next. ♪ >> despite being harley a liquid, investor appetite for junk bonds remains huge. checking this trend, lisa, why have investors been following junk bonds? >> investors are not only piling into the publicly traded junk ons, but also bonds that are difficult to trade, even harder than normal junk bonds. they yield more. what we have had since the crisis, with the federal reserve pummeling the market with cash, flooding it with cash, yields have come down dramatically. they are now below six percent, on average. about the same as the average 10 year treasury yields in the past 30 years. people are looking for more yield and less liquid, the harder to trade bonds are yielding more. qwest is this that the future? have we seen this movie before? >> i hope not area the question is, that does what a lot of investors have asked themselves. there has been a lot of concern past yearver the where people have said, this is debt of companies with the least margin of e

coming up today, pimco recruiting. the former money manager is returning to fill

. >> pimco does have 13 global offices. many of those sorts of inzors step into the market.they have been big buys, to invest in marks to close out their long-term viabilitys. but one of the bicker reasons for the move in yields this year relates to what we call the new neutral. which is the idea that policy rate won't go to the old four but more likely two or so in the future. in fact, bill dudley the new york fed president said seemed to suggest and said the policy rate t. fed rundz rate. the one people think will go up next year will be below four and a quarter in the next rate cycle. it's one of the biggest reasons fields have fallen this year. because it looks like the fed is signaling. it looks like the next year will do so gradually to a low level water phone as a look for two, not the usual four. >> so did he imploy it will be sooner rather than later? >> it's his view. >> we aren't shocked by that. >> what about rates falling 75 basis points since tapering started. you didn't taper nearly fast enough. you should have been more aggressive in pulling back. >> inflatio

pimco note. >> apparently bill gross -- the new normal of slower growth.na's new normal is a lot faster than ours, it is still slowing. that is the theme. analysts are forecasting china is heading for its weakest expansion since 1990. poland

we are talking through the new normal and the new neutral as pimco has now coined the modest trend growthandrew balls for sees. also digging into the eurozone numbers with david allen's. he has got some interesting views of what he anticipates the ecb to do, how mario draghi will inflationhe slowing that david sees across many a european country. and of course our standout interview will be with the head of adidas, the chief executive will be talking to david from germany, digging into the outlook for the german economy. also, the outlook ahead of the world cup. we were busy -- we will bring much more to you. >> looking forward to that. make sure mark stays upright. coming up, you could say the adidas headquarters is in the middle of nowhere but thanks to some adrenaline boosting company perks it has managed to attract extremely young workforce who continue to take a look inside adidas. that is next. ♪ >> as we focus on economic growth across europe, we continue to look inside the business of adidas. its headquarters isn't exactly in a young urban center like london or new york. it is in

top five are blackrock, van barred, state street -- a vanguard, state street, fidelity and pimco. regulators are concerned that two of them. blackrock and fidelity are so connected with the financial system they may need to be regulated more as systematically important financial institutions or sifis as part of a review by regulators in as council called the fsoc. the treasury department is holding a public conference on asset managers and their activities. >> the threshold question is, are there risks here that need more oversight? and if there are, what are the appropriate remedies and the fsoc has a whole menu of things it can do but no decisions have been made yet about whether there are risks that need broader oversight and what the steps will be. >> reporter: now the industry is fighting new regulation. it says asset managers and mutual fund companies are not banks and they did not cause the financial crisis. the investment company institute says, quote, a fund designated as a sifi will face significant additional regulatory costs, costs that will be, that will fall on share

pimco saying we are stuck in a new neutral. this. >> there are three key elements. multiseat world of countries converging to slower trend growth rates. we also have a world in which economies face overhang of leverage. we have had no deleveraging in the past five years, and the aggregate has a lot of deficits. policymakers will recognize that, and keep rates lower. >> let's bring in the managing director at equity portfolio managers for jpmorgan. i think you have a little bit more of an optimistic outlook? >> i would say compared to the new normal and the new neutral, it sounds like things are getting better. it sounds like the major economy is accelerating a little bit. we are excel rating in touch into next year -- accelerating a touch into next year. a positiveng for cycle in the united states, seeing better jobs leading to better consumer behavior. leading to the cycle building on itself. >> but we get the interest rates low for quite some time? whatthink if you listen to the fed has said, they're talking about a normaliza

they are holding an all-day conference that will include officials from pimco, fidelity, blackrock, andds. merriam alarm will be catching -- mary miller will be kicking things off. undersecretaryby miller. thank you for being here. i know you have a big day planned. explain to me how asset managers fit into the whole risk to the financial picture. >> that is the question we are trying to answer. that financiale stability oversight cancel, 15 financial regulators have a charge to surveillance the entire financial landscape. we need to look at everything and determine if there are risks that are not adequately monitored, and if there are, we need to figure out the remedies. it is the question we will explore today with asset managers, academics, and other stakeholders. say there is no way an asset manager, despite their size, pose the same kind of risk as a bank does. and asset manager could pose that and how? recognizemportant to the different business models in the financial sector. a bank and insurance company, and asset manager, they are all different. are these companies built, what

. >> pimco's flagship total return fund has suffered a 2th consecutive month of outflows. that fund run by people kosimco. since last may, the fund has seen net outflows of more than $55 billion leaving its total assets at $230 billion. i think, you know, that may account for a large part of the pr campaign and debate that's been going on and why pimco has been nervous about mohammed leaving and what that's all meant. >> also, just under two hours away from the april jobs report. consensus forecast saying that the u.s. economy added 215 thousand new nonfarm jobs last month. that's the number to beat, with unemployment rate dropping to 6.6% from 6.7%. you never know with that headline unto itself really matters. >> you know that we have this idea, this notion that there was some bad weather at the beginning of the year. we think it ended before this last -- this april jobs number. two days ago it was 35 degrees and raining where i lived. i mean, if it was 0.1%, do we know that we've recovered in this april jobs number to 215,000? >> i think we kind of have weather rebound f

. >> a familiar face is on its way back to pimco. >> that the not him. >> down from the mountain top.> the bearded version. >> long hair. >> he was going to get his haircut on our air at one point. i forget what happened with the logistics. >> he looks like a yogi. >> this is a newly created role for paul. >> stability. >> bring back familiar faces. >> bring back a guy who left, grew his hair down to his waist and went off to a mountain somewhere. >> what would happen if you were off the air for a while. >> i'd be listening to cold play. >> toll brothers says its quarterly profit more than doubled. revenue rose more than 67% as the nation's largest luxury home builder sold more homes at higher prices. toll brothers stock is up by 1.25%. >> let's get out to california this morning where the code conference is taking place. jon fortt joins us. he has a look at everything from google's driverless cars and the new brand for the pc. >> it's 3:00 a.m. here. good morning. gwyneth paltrow, i'm going to say it, she rambled. people found her message important about being more sensitive on the i

askedorning, betty liu pimco ceo why the arcade and have a bigger reaction to the jobs report.ve an impact on the fed. that is what the market is worried about. it is not a strong report of a war it is the fed support may not be there. if you thought the fed was just issuing one objective of the june mandate, unemployment, with that unemployment rate at 6.3% you get worried they would start tightening. the fed is pursuing two objectives. near there.re it is important to market to take account of the unemployment picture and the inflation picture. >> it is time for adam johnson's insight and action. he is following the money. >> that that may be tapering its qe bond buying program. not the rest of america. corporateking about qe. .ook what it is talking about it earlier this week, distribute in cash via buybacks and dividends. you can support stock and asset prices all growth is low. the same thing that the fed is doing. you're putting money into the system. in this case it is corporate america trying to inflate stock prices. there is a catch. he you are substituting investment

coming up, pimco looks for growth in china. ♪ >> good morning, everyone. good morning, worldwide.bloomberg "surveillance ." russian foreign minister si ergei lavrov will sit down with ryan chilcote. front and center will be a discussion on ukraine. this is bloomberg "surveillance ." with me is scarlet fu and adam johnson. what i am looking at his yields this morning. the 10-year yield below 2.6, 2.579. we are back to low yields before the janet yellen testimony of about a week ago. let's go to gainers and losers in a record equity market with scarlet fu. >> one loser here is elizabeth arden. they make britney spears brand perfumes. now they are hiring goldman sachs to explore options. >> you know what that means? show me a bit. >> don't you have a relative who is in the business? >> yes, my sister is a perfumer. >> in any case, elizabeth arden is looking for a potential buyer. that.ill go with maybe sears can find a potential buyer as well. >> let's go to an important conversation on china. their newut with secular forecast and suggests subpar growth for china. that is critical fo

pimco note. >> apparently bill gross -- the new normal of slower growth. while china's new normal is a lot faster than ours, it is still slowing. that is the theme. analysts are forecasting china is heading for its weakest expansion since 1990. poland will not raise its benchmark interest rate. thelive and well around world. economic data in the u.s. -- 2:00, the monthly budget statement sometime today from a friend in washington. we will do more dislike whimsies and the mortgage. monday.ts up a quiet an amazing week of economic data coming up. >> retail sales tomorrow. ppi on wednesday, cpi, consumer inflation. >> and then housing data on friday. we will know a lot more about the american economy as we go to through friday, which will be a good thing. what else do you have? the guys that give you internet when you fly around in the air will be before the bell. will be after. >> with a great fiscal chart for you. , the euroeld, 2.64% is mario draghi weaker or the press conference. crude oil has done nothing since time began. frothiness inthe the market. ru

>> pimco has gone to the new neutral. be low for longer. going to figure this out? >> rates will be low for longer. you're talking about a fad that won't get interest rates up in 2017. >> thank you so much. the 10 year yield at 2.54%. >> we have a lot of economic data coming out this morning. empire manufacturing, cpi, jobless claims and industrial production and 9:15. you have u.s. futures down just slightly ahead of that. year. on the 10 >> good morning, everyone. all of our digital products on bloomberg.com. download bloomberg radio plus. i'm tom keene. with me, scarlet fu and adam johnson. we are thrilled to bring you steven levitt. his latest book is "think like a freak." their celebrities. >> these guys are rock stars. there is a new one on the block. he is always cited in the op-ed. -- tone on incoming quality income inequality is a raging debate. steven levitt knows a thing or two about being a rockstar economist. he practically invented the category in 2005. it's atomic that we're all interested in these days. -- a topic that we ar

. >> in the 30 year bond chart, do you agree with pimco's bill gross about the new neutral?pening of growth expectations. a more dampened era. growth is trend somewhat slower. some of this is cyclical billing off the cliff. a velocity shock. only partially offset that. i do not want to sound too pessimistic because i think the growth outlook is decent. 5%will be modest, 4% to nominal gdp. that is not -- >> that is not what deutsche bank is saying. it was the newst normal. with subpar growth for a long time. now the new neutral where it is 2% globally. on whereut a number the 10 year and the long bond, the 30 year, where they go? >> my guess would be we are closer to 3% by the end of the year. if we can get to a 5% nominal growth pattern that would be a step up. i think yields probably do move back up, which would be a healthy development. going the other way and yields filing two 2% or below normal two percent -- >> that is a possibility? >> sure. but not without a big dent to growth expectations. >> in other words, with yield at 2.5%, you would be looking for bonds to fall.

goes -- pimco is tipping their hat to the previous and current fed chairman.ben bernanke and janet yellen have rescued the u.s. he is now the firm's economist. is runningberg around his fortune. the facebook ceo and his wife million tog $120 public schools in the san francisco bay area. the money will be used to support innovation and give students more choice. stevemer microsoft ceo ulmer known for his hyper emotional presentations has a whole new court primed for his antics. i cannot wait to see the pregame and halftime shows, because the biddingr won war for the l.a. clippers. his bid to set a record price for the nba team, and joining us to talk about this fascinating situation is the economist from onth college, and the author the phone with us. andrew, $2 billion, we are stunned. are you. ? >> yes. this is a vanity purchase. it is a toy, it is akin to what the gentleman worth $3 million did when he bought manchester city. thinking and be hoping is that the clippers will get a deal like the dodgers and the lakers got from time warner, but time warner is t

of bill gross at pimco was to sit in the mailroom ad literally -- there was thing off the side and youlip the coupons. how quaint. >> don't admit that you know about it. >> thank you. view on rates? do you think rates need to necessarily stay low into 2016 as goldman sachs suggested? inno, i think they will move 2015 maybe as early as the spring. i think it will be a combination of continued rapid decline in unemployment and a bit of a cup and wages and some of the key components in the core cpi. housing unfortunately will be a necessary casualty. my guess is that that's the way the fed's thinking evolves great if we see the economy strengthening brother that housing is weakening, i think they will have to live with that and stand up and say it's a price we have to pay in order to get the rest of the economy moving. i think this will make it an unusual late stage recovery. the events that led us to this point were unusual. we are unwinding those things and housing is going to lag behind. >> thank you so much for your thoughts. we thank martin for watching in hong kong. it's a surveilla

it has a subsidiary call pimco.blic falling-out between bill gross and muhammad delairean, he is suggesting the outflows are getting less each quarter and at the same time he believes that the press is making way too much of it. take a listen. >> compared to q4 where we had to really some real outflows, it's really reducing, i trust half of what we have seen in q4, which supports my story. and then, additionally, you should really look at all the large competitors in the u.s. market. >> in the meantime, operating profits are down substantially at allianz. back to you. >> pimco, a huge earnings, no small feat. thank you. >>> the cme group, and rick santelli with the "santelli exchange," where he's talking about housing. hey, rick. >> we're talking about everything. we're talking about wattage of the economy. there's been a lot of discussion about interest rates. believe me, i love interest rates. nobody's followed them more closely than i have. i've been on these floors since '79. and in '83 and '84, i have been hook

the old pimco guy, paul mcauley, always interestingch don't miss it right here at 2:00 p.m. eastern time right here on estines. >> thanks very much for joining us on the show today. "closing bell" is coming up next. do not change the channel. see you same time tomorrow. >>> welcome to "closing bell." i'm kelly evans here at the new york stock exchange. >> i'm bill griffith. we are watching the markets kind of hovering at this point. we are close to all-time highs. of course, for the s&p, any gain for the s&p would be a new closing high. the dow needs roughly 40 points right now to the upside to achieve a closing high, but we're down nine right now. >> yeah. i mean, again, this would be the third day in a row that we close at a record high for the s&p. we'll see what happens. also a big day on "closing bell." a couple of exclusive ceo interviews. toll brothers ceo doug lay yearly and blackberry ceo john chen. so much to discuss with each of these guys. toll brothers this hour and uber and blackberry after the bell. >> pulling for john chen and that blackberry. turn that thing

do you think, to steal the pimco term, this is the new normal. >> in 2008, the one thing i'm convinced on. that's scary. >> agreed. >> you're not looking for a job for whatever reason. you're no longer unemployed. they count. they matter. they have spending -- they used to have spendng. >> and looking at people who are going to be long-term unemployed. >> and people will react to their ability to pay. for example, you take homes now. think of these poor kids who can't buy a home. every two years their rent goes up. they don't have equity that's going to go up in value which gives some sense of a net worth by the home they buy. these are all things that impact the economy. so the disposable income, instead of going up because you lock your mortgage payment, and as you get raises, there's more for other purposes. not only a home now. and this is regulation. make no bones about it. what's happening is i think the banks are saying we're not going to make money to somebody who can't pay their bills. >> the last question, liz ann and real quick, the 10-year being where it is, i could see tha