pimco -- not to.oss left the firm, from what we understand, amid a major rut between the other -- rift between the other portfolio managers and himself in terms of how to run this thing. he was the chief investment officer, he basically ran the firm. he sold it to alianz back in 2000. here's the thing -- liz: sec people are inside. >> they're inside there looking at that etf issue. clearly, the disclosures in the total return fund, the biggest fund, mutual fund n america, are changing according to people who have read these documents, and i've seen the documents as well.% liz: your hair is just short of being too short. >> you like it? liz: this is just short of being too short. >> little bit i ccn push over. liz: well, you'll get a chance to look at charlie's follicles one more time, because charlie will be in the next hour. herbalife is jumping 6%, by way. their results come in after the bell. any surprises, and there is news from charlie on herbalife as well. it is jumping 6.5%. >> what's it tradin

back to pimco, have you ever sound -- he built pimco from the ground up. it is a lot of cash. to say, is that fair and are they getting value. who invest ine the total return fund you you will -- i'm investing in a fund whose manager did not do a good job and paid himself a $300 million bonus. do i want to be invested in that kind of fund? >> we are already finding out what their answer is. >> let's talk stocks. the s&p has opened unchanged. you say we will see a rate hike in late two any 15 -- late 2015. >> jobless claims already 14 year low. employment is improving. corporate america is doing quite well. saw the retail sales number this morning. consumers feeling good. oil prices are down. a lot of impetus for the u.s. economy to grow. we don't expect real robust growth, but definitely slow, steady growth which means the fed has stopped their qb program and will think about their first rate hike sometime next year. >> if we only have slow and steady growth, why not leave everything as is? if the fed waits too long and inflation starts to pick up -- it's not on the horizon ye

have pulled out of pimco funds.s been -- that is the biggest outflow i think ever. it's a marily major thing. what is the likely impact on fund investment and pimco? if you still hold a pimco fund, is there any way you can get hurt here? >> i don't think it's as bad as charlie made it out to be. that fund still has a lot of very large liquid securities, big treasuriis that it can sell at close to the market price, and while it's true that fund has -- go ahead. gerri: go right ahead. >> while it's true that fund has some exotic securities, generally your losses in the bond fund even if things go wrong are not what happened with the stock fund when things go wrong. you know, i'm not overly concerned about people getting killed. go ahead. gerri: my question is this. people are pulling their money out for whaaever reason. will that ultimately rrbound badly to current investors? because people are leaving, should you too? any reason to think that? >> i don't think with this fund. it can happen with funds that are almost

who have money in pimco. are they being hurt here? >> to be clear that 300 to 350 billion figure is across the firm, not from pimco total return. >> right. >> there are a number of reasons we believe that way. the reasons that we believe that, we think that is at what point the bonus pool and operating margins could be affected. gerri: all about the bonus pool, isn't it. >> we should point out -- gerri: make call answer this question for me. what i'm concerned about is individual investors. and they have their savings. savings for retirement in this fund. what happens to them as more and money flows out? >> thus far, analysis would suggest that there hasn't really been a performance impact from the outflows. we tracked daily performance for the fund over the month of october. arguably the heaviest period of outflows we're likely to see. and the fund's performance landed right at the category midpoint for medium term bond fund. >> i would say this. that fund was probably too big to perform very well. we're tal

ands talk about bill gross his departure from pimco.euros.ences, 50 billion beat their estimates for the third quarter in terms of their numbers, hans nicholas is standing by. i had a conversation with the cfo, this was a man at pains to tell us that everything is fine at pimco and everything is grand and we cannot sign up enough new fund managers. what did you make of it? >> i listen to your interview and they are backed up by the ambers, 50 billion euros is big number from their 225 billion euros from the total return fund that their numbers tell the story that they are a profitable company. allianz as a whole are good but it still came in at 694 million euros and the numbers were so good that they are in a position to raise their dividends. it will be 60% of net income. in largea good number part because they have these other divisions. take a look division by division what allianz did for the quarter. at 690profit management four and property and insurance that is at 1.24 billion euros. life and health insurance another 790 billion

they are trying to stem outflows from their pimco unit. pimco has suffered almost 50 withdraws. s in revenue beat estimates after broad hand helped the carrier offset shrinking phone bills. it is a sunny of recovery after overcoming a price war. time to talk politics now. french president hollande said he will not run for a second term if unemployment does not decline in the remaining 2 1/2 years of his presidency. we're joined now from paris with more. does this mean that hollande won't be running in 2 1/2 years time? is that pretty much what he just told us? >> i would gotten that far. there is 2 1/2 years to go. it is hard to imagine the unemployment rate is going to keep going up every month, if it does, we're really going to be in a crisis. i think he is there to show he has no personal ambitions. he is just there for the french. he won the last based on the promise to bring down the unemployment rate. his approval rating is 13%. in those conditions he would not be able to run again. i think it is a little bit of facing reality and little bit of gamesmanship. >> if he doesn

gerri: right. >> i can't call up pimco and say let me have total return fund. have to do it through a broker ie, get it through schwab, one source i believe it is called get it through broker at merrill lynch or morgan stanley. these are institutions, big pension funds. gerri: they take their time. they talk about. there is a vote. it doesn't happen quickly. >> only can do it certain periods. they're thinking what pimco is bracing for is massive redemptions in january. tens of, could be billions of dollars. this is $200 billion fund, this total return fund. this is the one that bill gross ran and people are going to pull out. what they're doing now is damage control. all hands on deck people are calling up, please don't pull your money out. don't bail out. gerri: 27 billion pulled out in october alone. >> that was individual investors. i think it could be double that. and they could probably withstand it. gerri: that was my next question. >> this is what we do know from sours inside pimco. they have established lines of credit. they can deal with this they're -

. >> pimco out from a splash of total reach of record $27 billion in the month of october. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and weir just getting the eurozone composite pmi data come in at 52.1 for the composite number. that's 52.0 in september. we're also looking out for the services number. >> and that is 52.3 versus the forecast of 52.4 in the month of october. so just shy of expectations, but not a huge move, obviously. and we also had a pretty big fall in the euro, didn't we, at the german services pmi. >> absolutely. so that fall you're seeing in the euro of 1.2496, it is more off the back of the german october sales pmi. the flash number had been 54.8 but it came in at 54.4. that was a 22-month low in the german number. i'm going to bring in nicholas now who is managing director at spirit sovereign strategy. nicholas, a little bit bad news from the eurozone, particularly from germany. >> well, i think it's a mixed bag in the sense that obviously spain is doing relatively well. the overall picture is a fairley

>> pimco is known for getting people paid.they were making bank. >> that is the news from mary child. onwill continue this bloomberg radio and at bloomberg television. we need to go to berlin with hans nichols. what will you look for over the weekend from g-20 besides photo ops? >> the first thing to look for is whether air force one when it leaves and flies to australia, if the president will be able to see russian warships out of his window. it is a remarkable moment. think about all of history. has air force one ever flown over russian airships. putinhere be a vladimir meeting with merkel. will she talk about individual sanctions? that she talk about sectorial sanctions? you're such a beautifully cranky skeptic about these meetings. will anything actually come out of them? do people just get together and try to deal with protesters? >> sometimes on the sidelines you do have important deals and important conversations. i won't be entirely dismissive of it. unless we want to report out what the g-20 countries are going to do

. >> so turns out that the bedbugs are the least of pimco's problems. charlie what is going on there? >> what a toss. this does not involve bedbugs. i've been taubing with financial advisors aad looking at documents at pimco post-bill gross leaving as chief investment officer. i will say this, this is the headline here. pimco is going through a major transformation, particularly in their total return fund post-gross. -@what are they doing? they are deleveraging. they are disclosing more this comes as se c-ramping up investigation into part of the total return fund, particularly this etf, whether or not they probably disclosed or marked assets at market or value assets. pimco totallreturn fund, biggest mutual fund in the country or the world, is going through a fairly significant deleveraging post-gross. this is what i don't know. maybe, anthony, you know about this. i don't know if it is sec related or reason why they had% the battte between gross and current management? >> i think there is a lot of smoke here. there is a fire someplace. one other thing

pimco's total return fund didn't dough very well in 2013.ll gross at the helm it trade 65% of its pierce. but documents obtained by bloomberg shows gross still received a $290 million bonus. how does this stook up? >> you compare this to a larry finke of blackrock, and he made about $23 million in 2013. you would think they would be in the same realm, but they are miles apart. >> was this something owed to him regardless of how it performed? >> it did sount as though there -- sound as of though there was some sort of preexisting agreement. it did represent about 20% of the overall m.d. bonus pool, and 30% total. they distribute this $1.5 billion pool of the revenue that they retain among the 60 managing directors. that is how they divvy it up. as gross' riches grow, the managing director's may get less. >> how did it do in 2013? >> it was lagging pierce this. is when the fed started that taper tantrum talk. bill gross was importantly positioned for that move. it beat only 35% of pierce and just barely beating out the aggregate index. >> was

number two, the big issue is the pimco rhenium.es like vanguard or blackrock, they pay much more -- they charge much more for their holdings. there is a little bit of pressure -- hey, why aren't you as cheap as an art or blackrock? , it is a have to ask fun story on a personal level that someone makes that much money. have you gone to the other matt miller, whothew g. was in charge of bloomberg's billionaires? >> yes. he helped me. he loves the story. this data is hard to get. so, the past couple of years, you do not want to do it irresponsibly. you have a low estimate. i do not want to over do it. what we have to do was revisit that. >> bill gross has a lot more. a few years like this, and it has to be more than that. great story. we will take a quick break, but you can check out their story on bloomberg.com. i am sure they are both tweeting. look for them there. remember when the tablet was the next best thing? we will see with the future holds for mobile devices. stay ♪ with us on bloomberg tv. ♪ >> knows what the future ultimat

coming up, no pimco, no problem. alliance beats estimates despite pimco founderof bill gross.ng next. ♪ >> welcome back to "the pulse." live from london. the tough environment for europe's luxury giant is continuing as the world's largest jewelry company shows results. it is not aswn but bad as expected. >> the stock trading up 3.5%. still was in asia, hong kong, and china. richemont is the owner of cartier, montblanc. 38% of sales come from asia-pacific. assailants remained relatively resilient and client about -- climbed about 2%. the u.s. and the middle east helping offset that. europe is slowing. not as many tourists. 2%.a, pacific off japan off by 13%> profitability was down 4%. they managed to limit the damage with falling prices in precious metals. perhaps this is knows a prize. september they warned us we are off to the worst start in the year. and burberry struggled in asia. goldman sachs cut the outlook. a sigh of relief they were not as brutal as it could have been. >> the trent that asian sales will continue falling. they said it is not getting better in the near t

he built pimco. in $2 trillion and so everything's 2 and 20 or whatever and upside and aum and he brought in serious aum over the years. >> john? >> right. superstars are superstars because they make people money. that's why they're superstars. you know? this isn't the entertainment industry. which actually is very much the same. this is an industry of people to get paid and the reason he's getting paid and got paid and still is getting paid is because he makes people money. >> interesting thing is, bill gross is already, he's already a billionaire. this bonus does not affect the lifestyle one bit and which is funny. you think it's money to motivate him or a scoreboard and leave because of culture at pimco? >> i must say i'm very worried about what i'm hearing. you're sitting in the heart -- >> john, go ahead. john? >> $290 mill, still left and these organizations, crafty board of directors need to tie down the talent in very different ways and should be criticized for anything, maybe that. because,

former pimco ceo.k you for joining us.let's take a look at how the banks are ordered to pay fines. more on that story after the break. ubs up half of 1%. hsbc also lower. let's talk about the news after the break. here's a picture of the general equity markets. it opened a touch lower with about 2/10 of 1%. the dax is down by 7/10 of a percent. you can follow me on twitter. muhamed is on there as well. i will be back in two minutes. ♪ >> welcome back to on the move. i am jonathan ferro. 30 minutes until trading day. here's a picture of the markets for you. down by a third of 1%. the dax down by 9/10 of 1%. 82 points lower. let's go to caroline hyde. >> i am going with the green this morning. three regulators, five banks, $3.3 billion. that is what is being settled in the foreign exchange probe at the moment. ubs rising on the back of it. they provisioned more than they have been asked for. million andr $800 the provisions 1.8 billion appeared o. many analysts are saying this is a relief and they have p

pimco following the departure of founder bill gross. nonetheless, shares up about 5%, the cfo providing confidence to the market. >> absolutely. i think this increase in the ratio is definitely according to the investors. but there is no reason they shouldn't be doing it already. there is no reason why they should be having a payout as low as 40%. >> third quarter outflows from the manager did help push down operating profits. here is another interesting story. bank of america has cut its profits by $400 million in the third quarter due to higher legal costs from a multi bank probe of possible foreign currency manipulation. the bank's earnings urt hurt by a $17 billion settlement with the u.s. justice department over mortgage fraud. >>> a lot of news out of that out of the uk and the fda. there was news the u.s. regulators are going to join forces on that. there are seven banks involved. they're saying other regulators are still negotiating on that topic. it seems like we can expect more charges from the bank again. >>> looking at the o

they paid enormous price as people reconsidered pimco investments letting him leave that way. tough way but this is -- >> you wonder why people, why they care -- by the way $100,000. my mistake. that 100 million is minimum investment. we'll deal with that late. i wonder why superstar managers matter that much? shouldn't performance matter? it does matter. the name -- >> three years of performance that then -- >> last two years. >> wentdown hill. at what appointment do people leave? melissa: postmaster getting first female chief. it is not me! who do i write to. patrick donahoe is retiring and ceo meagan brennan is getting top job. i was campaigning for a while. there are good businesses. it is prime turnaround. bring in private equity. whack out the bad businesses. get rid of unions. >> get rid of unions, huh. melissa: i think you have to. only way to do it. too many legacy costs. you have to go in. turn around opportunity in there. we'll have the postmaster coming up exclusively later on in the show. >> someone that works for the post office? melissa: patrick donahoe is leavi

>> october was a rough month for pimco. you guys have been watching this drama of old at pimco. >> absolutely. it's astonishing to see this thing unfold. the amount of withdrawals that have to can place in the last month after his official departure, i was shocked. >> pimco sent is a chart last night of the withdrawals. the really slowed down into the end of october. i would say this drama has unfolded. we want to keep it alive as long as we can. it is pretty much done now. i do not think you will see another double-digit billion-dollar redemption month in november. >> they want to put it in context. others have seen redemption as well. you see money flow into equity funds. the markets have gotten better. bloomberg television on the markets. we have settled slightly higher. .6%.q futures up our top story is next. ♪ >> welcome back to "in the loop ." matt miller and bob nardelli joining me. we have to get back to the big story of the morning. the elections and the aftermath .our president obam president obama waking up to the reality that both houses will be run by republicans. i

many of you have investments with pimco.to know what's going on with the mutual fund company. moving back to elections, the first polls close in an hour and a half. we will learn who will control the senate in 2013. if the g.o.p. succeeds, what can we expect? all right. peter, what, for example, would a republican senate mean for obamacare. >> it's unlikely that the republicans in charge of the senate would get obamacare repealed altogether because you really will need 60 votes to do pretty much anything in the senate and nobody is projecting a 60 vote majority for the senate republicans. however, you could see some movement, potentially some comprise with the president and senate republicans on this issue of repealing some of the mandates like the individual mandate. they might talk about doing that. senate republicans will bring these kind of measures to the floor. but what might they be able to get a deal with president obama on? maybe tweaking the mandate and repealing the medical tax. it's a tax on your grandma's new hi

andrew, pimco head of portfolio management in germany. "on the move" is up next.t show. mario draghi is just about to speak in frankfurt. we are showing you live pictures of mario draghi in frankfurt, getting ready to deliver that speech. what clues will he give us? have a good weekend, everyone, when we get there. ♪ >> welcome back to "on the move ." moments away from the start of european trading of easy friday to you all. the main street takes a beating, ukip takes a second seat in parliament. tellsader nigel farage bloomberg that next year past general election is completely uncertain. because of what you wish for, the japanese yen had a seven-year low and the finance ministers has changes are not welcome and the currency has weakened too fast. bloomberg chief and finance advisor speak and this minute -- this morning any minute now mario draghi speaks. as we wrap up the week check out the movement in the futures markets. 0.6%, 36es higher up i points higher and if you look at the week another week of gains and to manus cranny that would make it a fifth week of

what is the new normal at pimco right now?going to start pivoting more toward equities, given the fact that we're seeing all the central bank action? >> so there's tremendous talent at pimco, and that talent can be reflected in many different asset classes. in general, we're going into a world, maria, where asset managers are going to have to offer more than products. they're going to have to offer solutions to their clients. why? because correlations are changing. you mentioned oil. look at commodities. commodities have been coming down while equities have been going up. that is a very strange correlation historically. and it reflects the interference of central banks with the functioning of markets. >> so what would be your instinct, then? do you want to buy equities right now, or are things getting overheated? >> i would say given the very strong rally we've had, take some money off the table here. have some optionality. there will be bumps down the road. there will be lots of volatility. you want to have dry powder at this

lots and lots of assets flowing out of pimco. what does that tell us about the state of the mutual fund industry? >> the mutual fund industry will have to change. the mutual fund industry has a problem. that is most of the fund groups, the large fund groups and small fund groups alike are owned by private enterprise people, and they're owned by corporations, giant conglomerates. they have public shareholders. and they have got to appease or please the shareholders and management company, at the same time they're pleasing shareholders of the fund. often written, you may have seen this somewhere. no man can serve two masters. in our industry the master is being served, is the management company. we've got to make a big u-y, 180-degree u-turn and start focusing on shareholders where in vanguard a big advantage. we're owned by our own fund shareholders in this mutual structure enormously valuable to the conduct much our business. gerri: very different from other companies i might add. >> there is no, no one ever copied it. gerri: no

we will talk to pimco about it. and we will get perspective on global mom and -- monetary policy. ♪ >> mixed news on the u.s. economic front today. the conference reports that consumer confidence unexpectedly fell in november. the chief investment officer at global credit at pimco joins us beach,m newport california. welcome and thank you for joining us. let me get your take on what we saw this morning. i was more impressed by the gdp revision than i was by consumer confidence. >> hello. economy is doing quite well. there is decoupling from the rest of the world, particularly in developed markets. what the gdp report shows this morning is if you strip out the government sector, for the last several years, the u.s. economy is growing at 3%. this economy is kicking in. the consumers are benefiting. >> at least one of those things is finished, right? low energy prices going forward? interest rates at some point have to turn around? >> eventually, but here is what is happening. oblique, not a lot of growth. policymakers

that was a record for you. >> okay. >> money coming in from pimco investors?> probably, yeah, sure. >> how has that impacted you? we haven't really heard from you since the departure of bill gross in a very dramatic fashion. what are you seeing in terms of clients? >> well, what happens is, when there's a big organizational change, a lot of seasoned advisors know that they've seen this movie before and pull their money the first day. so you saw a lot of money going into money market funds and index funds, which is understandab understandable. people at first flee from the organizational change. they don't know where they're fleeing to until down the road. i think a lot of money is still in motion. not so much in the mutual fund industry because i think a lot of that happened in the first few weeks, but institutionally there's a lot of things going on that investors move more slowly than self-directed money making changes because of the organizational switch there. >> you had that meeting with bill gross about possibly joining you at doubleline. are you glad he

gerri: pimco is founded by bill gross, he left not too long ago to go to work, and we have seen a lot of outflow already. i wanted to focus on what these companies are offering and what they're doing for for their fees. starting with black rock. let's dive into what they are doing here. >> from 75 basis points down to 45, so i very aggressive cut. 40% loss of fees on that, they are definitely trying to get in under the radar to encourage gatekeepers and others to make decisions about 401(k) plan and think about black rock return product if they are deciding if they need a new total return bond product in their portfolio. gerri: and cutting fees on the core bond fund institutional shares, low duration, kind of across the board. some people may look at these lists and say institutional, it doesn't matter to me, but it does, right? >> this is how a lot get access to these managers through 401(k) plans and often if you have a good size 401(k) plan, you are already into the institutional share classes. not for somebody like that, these are mutual funds for the retail investor with enough p

since then investors have been pulling money out of pimco's flagship fund. much can this firm withstand before sustaining lasting damage? what about that damage to individual investors? "morningstar" has conduct ad top to bottom review of the company since gross left. its director of manager research active strategies, michael herbs is here with his findings. we're joined by fox business senior correspondent charlie gasparino. welcome to you growth both. michael, i will start with you. i will pose the question we asked in

think about pimco's fund lost $20 billion in a couple of days.s extended more than that now pushing more than 100 billion into a market where these bonds that he owned are all over-the-count over-the-counter. they are all story bonds. the fact is that bank's trading desks have been pretty much wittoled back. regulators don't want him to risk their own capital providing being a market maker and providing inventory. i do think we had an outflow of bonds into a market that who knows if the street found homes for this stuff. that had a trade at a substantial discount to get placed. >> thank you very much for being patient and listening through all of this. what do you think? year highs for the nasdaq. what could go wrong? >> i think the biggest thing that could go wrong would be a falloff in earnings. we may be at average valuation but bull markets don't end with averages. they end with recessions. the economic data remains quite strong. as far as i can see it could be a stronger dollar having impact on multinationals. i think generally speaking any

pimco is actively overweight the dollar.ll indicators or stochastics show the dollar might be overbought too many people too long. and it is slightly overboard. >> the dollar coming off its high and the aussie dollar m a 15 months in a row. the data coming in. almost at the lows of 2014. the governor saying the value of this currency still above its fundamental value. it will take some time. it was estimated to come in at 6.1% so the aussie dollar is getting a little bit of a flurry on the upside. those are your ethics checks. showing fee for -- fifa the red card. the airline is the first sponsor away after allegations of corruption's emerged in fifa. include sony and visa and coca-cola. the new chief of britain's electronic spying agency accused the companies of being choice for terror groups. and tech companies are in denial about the misuse of services. first groupe is the whose emirates have grown up on the internet. and insisting that the review of recent health check results was rigorous and credible. the european -- s

pimco return fund suffered its worst month of redemptions ever following the departure of bill gross. withdrew an estimated $27.5 billion on the world's largest bond fund. half of the withdrawals took in the first five trading ays of october. it now has a total of 170 .9 billion dollars in assets down from the peak of $293 billion -- billion. in a partnership, they are offering according to a person with direct knowledge of the offer. hoping theid to be portuguese government will be favoring its proposal. they are waiting for more offers before deciding what to do according to people familiar with the situation. top shop is opening the doors to its brand-new fifth avenue flagship store in new york. as of the first time the fashion retailer has opened a store in manhattan, but it's of the biggest. it coincides with a partnership deal with beyoncÉ to create a line of stylish sportswear. catching up with ceo philip green, he's optimistic about their future in the united states. >> i think that year-over-year is tilting a lot better so we are pleased with that. i think just generally, we

a bloomberg view, missed and former pimco chief executive will be joining.d al arian. us.o join it is mark barton tv. he is climbing the polls. stay with us. u.k.'s third-biggest supermarket, sainsbury's, just reported earnings. it is trading profitability to retain customers. we will look at the company's performance. ♪ in light of sainsbury's announcement today and amidst the demise of tesco, i want to compare sainsbury with tesco and these ftse 100 benchmark index. a lot of attention has been focused on tesco. today, sainsbury says it is cutting its dividend and capital expenditure. look how tesco and sainsbury have fared. as you can see, the orange line is tesco. , 14es have fallen by 47% billion pounds wiped off its market capitalization. sainsbury,ine, shares are down by 33%. not as much as tesco but still 2.4 billion wiped off its market cap. tesco is three times the size of sainsbury. to the fall inwo the ftse 100, the yellow line. the ftse is down just 1.5% in the last 12 months. tesco is the second worst performer over a year. sainsbury is the fift

janus attracted $1 billion since luring gross from pimco.mayor boris johnson could be on the hook for unpaid taxes in the u.s. he was born in new york and holds a u.s. passport. he is being pursued for capital gains tax. american citizens are required to file a tax return even on income earned abroad. johnson called the demand "absolutely outrageous." ismagine and private he saying other things. next, we get back to our big focus. we will speak to a guest who thinks ukip's victory in trigger more defections from the conservatives. we will speak to philippe legrain in a few minutes' time. ♪ >> welcome back. you are watching "the pulse." live from bloomberg's european headquarters in london. , thatdraghi has a spoken is the damage he did to euro-dollar. 1.2432. a dovish speech. yields at record lows. draghie seen mario delivering a little bit of good news for those who hoped to export the way out of the eurozone crisis. we have got jens weidmann coming up in a few minutes' time. if we are getting bird driven, draghi is a dove, jens is a hawk.

meanwhile, bill gross's departure from pimco has brought a record number of redemptions.tal return fund. half of those occurred in the first five trading days of october. those are your top headlines. >> i believe it was monday you saw full ad for pimco, i will say in the ft -- i can our member where. in the same part of the paper, a full ad for mr. gross and janice -- janis. >> i would suggest bill gross would tell you that is true, but overweighted. i think the asset size is valid, but overweighted. himhe numbers prevented from being able to actually maximize his return. >> the performance of large numbers is definitely there. but in terms of leading in and out. but i think of bill gross less as an investor and more of -- >> i think of bill gross less as an investor and more of a shakespearean character. -- if you look at , did russellxt, brand sayed? it doesn't matter about bill gross. stars running money still sells. but i think we need to -- >> i think we need to play that on surveillance. was this bill gross or russell brand? our next guest spent some of her time at

the way he left pimco. >> they sure thought it was. the day the announcement was made remember what the stock did? >> huge upds. and that was a huge opportunity for people to sell. if you are sitting with the janus right now and are him at the helm. i don't know what that is going to do for your stock price. i don't see any reason to want to own it even on this pull back. >> rack space. >> a whole process so money could not physically move to janus so quickly. in terms of rack space, the company came out and said hey no one is willing to buy us. and then they came out so we have great earnings so the future is all of a sudden bright again. i think i it's worth owning right here. >> talk about a good day. alibaba racking up more than $9 billion in sales in 24 hours. what do they have up their sleeves next? and herb greenberg actually likes a stock. >> what? >> likes a stock. >> is it a reverse etf? >> a stock he said. >> not just a stock, a biotech stock. >> he is waving the green flag is herb for a biotech company you probably haven't

here's former pimco c.e.o. -- >> i think that number yesterday, the negative 1.6, was a horrible number. now, japan is moving quite quickly. today we got news that not only will they post upon the consumption tax, but we have an election. so there will be an attempt to revamp the economics approach, so that's good news. but the message to the rest of the world is don't get stuck in this general malaise because it's very difficult to get out of. >> the japanese recession may have a big impact on u.s. companies. japan is the fourth largest trading partner of the united states. boettcher capitalist wants more bitcoin. he tells bloomberg that he plans on bidding again when the u.s. government auctions off 50,000 bitcoins that were seized. he was the winning bidder in the first auction, buying all 30,000 bitcoins. he calls it one of the most important technologies that has come along in his lifetime. to our lead. uber c.e.o. travis k departure from our values and ideals. his duties here at uber do not involve communication strategy or plans and are not tative in an us now, david kilpatrick,

whether it's coming from pimco and what his calls are for 2015. biggie for 2014, they are up 6% so far, was that treasury still had room to run. totally against the consensus. nobody on wall street expected this. turned out to be right. we'll talk to him about his call for the federal reserve and for treasury prices in the new year. he's also had other good hits including strong dollar. he also had a hit about oil, oil going down to 70 ahead of the key opec meeting this week. some misses as well, especially when it comes to stock picking. he told us that apple was a sell, that turned out to be at wrong call. he had a short on home builders, as we're seeing new highs for some home builders today. we'll cover the globe. we'll talk stocks, talk treasuries. and of course, we'll talk about that megacall on dollar/yen, he told me 200. it is quite a bold call. already that has been the most dramatic trade, i would say, of the last year. be sure a lot of currency talk as well. >> in the meantime, i believe you were spotted at american muse ache waic award

ibm, nobody ever got fired for allocating to pimco. it became automatic. people move in streaks. the best performer one year could be the worst the next year. ,hen that realization comes out an organization is forced to deal with it. andle point at each other nobody is above that in the whole world. , theing back a little bit presence of people like josh, barry, other financial professionals, is one of the huge aspects of this media revolution that deserves to get a lot of attention. on twitter, i follow people who are professional trailed -- traders, professional investors, who, in the past, would not be sharing their insights, but they are doing so all day, competing with journalists to become sources on stories. that is phenomenal. i really enjoy it. i love the fact that i can hear from people all day and see their reactions to news. but it sort of -- >> interestingly, no one picked up on that it has freed investment managers and hand fund -- and hedge fund managers to be much more open on the -- on their views on the internet and twitter. this is fantastic. journalists really

pimco invested.he world he was going to find lots and lots of oil in the deep waters of brazil. he built a port and shipping company for the oil. bottom line, he didn't find that much oil. some investors feel frauded. you can see him with the current president with brazil. >> scandal number two, moving on here as we tick them off. also coming from brazil, the tlaed earnings report. where did the money go? >> the scandal threatens the president of brazil. the leader of the opposition said how could she not know about the scandal when her previous job was the chairman. there are a lot of potential canaries. brazilian investigators arrested so many people they needed buses to take them away. take a look at the magazine cover from last month and it highlights the risk. it shows her and the former president of brazil, the headline reads "they knew everything." there is no legal proof of that yet, we should point out. stock is down nearly 40% for petrobras but today briefly went positive when it was sugges

let's bring in cio of pimco. >> i'm wondering what your general reaction is to what we are seeing globally today and how you would play it. >> scott and mandy, good to see you again. i think the u.s. economy is clearly the lead horse here. the consumer is strong. for the first time in probably three or four years we are seeing monetary policy desurgence and economic divergence. the way we play it is basically long dollars. and play cyclical. we think the u.s. economy is strong and there are many cyclical areas we like in the u.s. economy. >> it seems those are popular places to be. in this kind of setup you like housing which to me seems interesting. it's far from a booming space at the current time. >> yeah. we like housing because housing prices in america are actually very cheap on a relative basis. housing is cheap versus rents particularly with rental inflation in the major cities. the supply if you look at long term charts inventories are very low particularly as a percent of the working age population. the most important reason is the consumer is coming out strong. you have declinin

janice is betting on growth to build a pimco. -- says its market share in russia improved as the reported third-quarter profit that messed estimates -- met estimates. we will continue to talk brews with carlsberg. we will ask the ceo about the challenges it faces in russia. that is coming up later in the show. first, after the break, my exclusive interview with the burberry ceo. hear how he is planning to make this christmas one to remember. ♪ >> welcome back to "the pulse." we are live on bloomberg tv and radio. it is a big week for iconic british fashion house burberry who are set to announce third-quarter earnings on wednesday. also on the horizon, the all-important christmas shopping period. burberry has an ambitious strategy to attract customers over the next two months. i went to meet burberry's ceo, christopher bailey, to find out more. justristmas is bigger than the 25th of december. it is really the build up to christmas. it is really about celebrating and storytelling. we have created -- we have worked with romeo back in, who is a world superstar. different pieces of content acr

pimco, when co., black rock, bernstein, all sitting around the table.en proposed, hey, u.s. $10,000, we will pay you $5,000 per loan. this will still be budget gap, ok? >> what happened? >> it was a terrible idea, ok? if you walked out of the room they said, hours, ok, you guys are right. this is a terrible idea. >> one of the things we may not while investors certainly would face losses under a scenario like eminent domain, those issues are still highly localized, fairly small, not being debated on a nationwide basis. at the same time anyone involved in mortgages consistently -- >> they bought them at bar and roll them back to 60 and they are back at par. >> did anyone actually write it out that long? >> i don't know. i truly do not know. but that is the reality. but if you bought them at $.25 on the dollar and now they are $.50 on the dollar, you did very well. >> thank you. we will have so much more to talk about. >> we will return. >> coming back -- we will take you back to the los angeles auto show. our matt miller is there. >> we're not going to l

they hired will gross away from pimco. they are trying to rebuild their brand. the firm manages half the assets it did in the year 2000. just five months after raising thatbillion in a round valued it at $17 billion, uber is looking for more cash. early -- in early talks for another $1 billion. cory johnson is with us from san francisco. why so much more money? >> why not is the answer to the question? the ducks are quacking. there is a lot of money in these markets. lookingthat what we are at is a company where investors are wanting to fall into this kind of deal. they raised about $1.2 billion in june. they had a $17 billion evaluation. this will likely exceed that. huber has a lot of expansion plans, not just in the united states and europe. asia is a very expensive prospect for expansion up. they are looking at a lot of things. the echo financing as a strong part of that. that can only help them. huber is in 10 indian cities. in 10 indian cities. that is a kind of thing that can entice drivers to start driving for them or move their driving over. >> i get yo

pimco reporting a record, and the firm comentinues to see mon pulled after the surprise departure ofs. 98% of drivers say they know about the dangers of texting and driving, but try quarters of them admit to doing it anyway. findings released as part of at&t's antitexting and driving. >> use the dictation, and, in fact, you can use it where you talk into your radio, and it comes out. >> can i make a quick observation? >> yeah. >> doing that and talking on the phone while you're driving is supposed by the equivalent of driving drunk, they say. >> should you talk to people in the car if you have other people in the car? is there a line anywhere? >> you talk to other people in the car is different than talking even on the headset on the phone. it does something cogtively different. >> i believe that. >> you have to change the crazy words the phone comes up with, like, what? some of the easiest words, and that's what you come up with? find out how stocks perform following midterm elections. chu has the number, and it looks like things are strong, and that's okay, dom, whatever happens, t

bill gross had come to janus, i had known bill when i was on the board of pimco from 1980-1990. of mine and i was excited he did come. janusng the priorities at in the sense that, with his skills and reputation and his ability to manage money and the like, he is attracting a big following. it means everyone has to reorganize themselves and help him with his efforts at this juncture. >> a little more focus on fixed income. he has brought with him hundreds of billions of dollars in investment money. what are the chances he will get another $300 million bonus? >> i hope he does. that would be wonderful for he wered for bill if able to achieve that bonus in subsequent years. >> i will bet. , cbsews bloomberg broke market getting out of many single names. this comes after an onslaught of regulations in the industry. do you think it is ace -- a mistake to move away from cbs? >> i have not studied that in depth. i assume the business decision makes sense for them, regulations and rules and especially capital rules, are such that they cannot make profits in that area and maybe gravitate