i'm telling you, this is a big story within pimco. it's interesting that pimco began paying when gross left, key executives bonuses in cash. they saw this coming. clearly this thing came and it's hurting a lot of people. we're talking about a lot of money in compensation evaporating. now, are we getting a big exodus of people out of pimco? there's a few people who left. gross is at janus. a few people have left. it's not the huge departures that you would see because essentially pimco still pays pretty well. but inside the firm, what they're describing this as, a black swan event. something you never thought would happen. who ever thought bill gross the firm that he founded, would leave and the assets would evaporate. i mean, everyone thought he would retire there. liz: is there a direct correlation to the fact that their bonuses are down? direct correlation. charlie: yeah, yeah, yeah. they were tied. i mean, this is pretty simple math. the stock -- internal stock -- they were given options over the past three to five years. not last

bill gross versus pimco. this time pimco win.al return fund cut the exposure to short-term debt laden -- betting on a short-term that in june. it is paying off for pimco. 2.6 return -- 2.6% from september through march. joining me to discuss the strategy is a co-manager. also the cio of global credit of pimco. thank you for joining me. when bill gross with that pimco did you and the other managers disagree a lot cap >? >> i do not think we disagree that much. we have been incorporating the insights of the incredible team at pimco. we noticed basically around the time phil left that there were growing divergence economically as well as future monetary policy that caused us to think the economy with picking up. we wanted to get the interest rate it measured down and increase the currency positions. over the past 5.5 years, the team, which encompasses myself and scott have done a good job getting the insight into the portfolio. the portfolio has been quite well. alix: was that a big change from when you work with bill gross? it seem

managing to offload some risk year loans and get a quarter of a billion euros from pimco.imco is the buyer of real estate developer loans. that is according to the spanish press. they take 30 to 40% of the nominal value. but the real estate debt is as of yet unpaid. meanwhile, they do not like what is happening with lafarge. this is a merger on the cards to create the world's biggest cement company. we thought they managed to agree on the terms changing the management in the future and financial terms, the problem is one of lafarge 's key shareholders does not like the deal. so polson's second-biggest shareholder says they do not like the way the merger is going and they will vote against the wholesome lafarge merger. that is olson's second biggest shareholder. they don't like the way the deal is going and they will vote against it which is bringing lafarge down. back to you. anna: thank you very much, those are some of the stocks we are watching this morning. let's get to a political story this morning. nigeria hosted presidential elections over the weekend and the profes

he changed it from the pimco brand of tea but he is not quite there yet.ng for the new version of the new normal. olivia: i want another man in the mirror moment. betty: number three, goldman sachs predicts growth that will exceed 10%. us on 11% jump in revenue last year, the most since the financial crisis. $111 billion worth of new assets. the story here is has been a small and irrelevant part of goldman sachs. now that treatment is going down, this is becoming bigger for them. olivia: new regulations in a variety of things have made more money available. getting out of investment banking and dealmaking -- is very interesting they are now following suit. we will see if it impacts the evaluation at all. bob: i say slow the process. a division of goldman sachs is making money. the interesting thing in the michael moore story today is they are making about 2% on loans to very wealthy clients. that is fantastic. i want to be a what the client just to get a 2% loan. i can get a 2% on my mortgage. betty: which is like cash essentially. bob: it is. betty: numbe

gross was a cofounder of pimco, but departed suddenly in late september. but as a look at the top stories we are following on this tuesday. in about two hours pulls in israel will be closing. let's get the latest from bloomberg's middle east editor elliott. he joins me live from tel aviv. prime minister netanyahu is warning against a high arrow turnout. why, and are his comments being seen as offensive? elliott: his comments are being seen as at best politically, at worst racist. he has also been trying to shore up his struggling baseball the last few days. last night he talked about there being no palestinians date on his watch. he said he would not form a government of national unity. some have said this is just politics. if he does have the opportunity to get into a government coalition with herzog of the opposition, and i am here where he will be celebrating or commiserating later on, he may be saying otherwise. this is such a tight election we do not only not know who will win but the person who comes second. mark: one about -- what about herzog stanc

>> pimco is an easier answer than janis. i think pimco will flourish.ntlemen. and it's an amazing franchise. it has an incredible group of smart people a great track record. the firm is in position of transition now from a founder-driven partnership culture to a franchise-driven corporate ethos. and it's a natural evolution in the history of the firm. bill built the franchise. the franchise is amazingly strong. and five years from now i think the franchise will still be strong but it will be managed in a post-founder environment. so i'm bullish on pimco as an entity in some respects because of the beauty of what bill created. >> paul let's talk about the dollar. let's talk about what you think may be happening right now. because we have seen the dollar rise significantly. and there's some people who are now saying that now that the fed has spoken okay, that's the end of the massive run for right now. what do you think? >> i wouldn't disagree. it could be the end of the mass irun for right now. that's a short-term call. but by biggest call last year at p

mike amey is here from pimco. how big a move is this? it would be a bigger move if they did not. if you look at where the first rate hike is priced in i think the market is expecting patient to go. if there is a surprise, my suspicion is they leave it in. i think of the other thing, we should all remember, dropping patient is just one step along the way. it does not the moment which we get the sign off on a first rate hike. we talk about volatility around the first rate hike and whether or will be on the event itself or a point on which it becomes crystal clear, it would be surprising if we get that one today. our suspicion as they will drop patient but they will make it clear that this does not mean anything other than they are a step closer to moving. francine: what will they say about the dollar? mike: there has been veiled comments in the past on the outlook for the u.s. economy and these kind of things but so far, they have steered clear of comments on the dollar. my suspicion is they will continue to do that. they may reference a w

i am joined by the ceo of pimco. great to have you with us. we talked about the verge of monetary policy. it has been a one-way ticket. you weren't expecting this were you? >> i wasn't expecting over 20 rate cuts. i think if you want to understand the driver, there are two things. one is the ecb is willing to do a large qe driving yields further into negative territory. the second issue is the u.s. is willing to tolerate depressurization. you will end up trying to push your currency lower, and that is what we are seeing. >> you and i are going to talk about bob markets a little later. he is looking out at the world. we see assumptions. the third is tolerating a stronger dollar and eloquent liquidity. what are the most crucial ones? >> these are dictating a lot of the market positioning. most people are on the same side in terms of what they believe will occur over time, which is long equities, long euro versus the u.s. there are a series of trades, and they assume these four things. the most important thing is the illusion of liquidating, that

for pimco, that is something to tick over in your mind. there are macro challenges in asia. inflation is unlikely to reach anything higher than 1% by next year. we just said the inflation data. if used about out the sales tax this currency is of course you're looking at 0%. there is a cap at 120. that is your dollar-yen story. the ruvell has gone from 0 to hero, -- the ruble has gone from 0 to zero the best-performing currency. let's show you the year to date. dollar down. ruble rising. it has been on a tear. up for the fifth day. the best performing currency in 2015. here wea re are reasserting itself. it was overbought in those five days. it's an indicator it was overbought and oversold. you are going to see retraced back towards 59. that is the view. it will reassert its downtrend down to double nickels or 55. caroline: thank you. let's check in on our top stories this hour. google will pay a new financial officer more than $70 million after she joins the tech giant in may the pay package will put her among the highest-paid cof's in the

let's go quickly to scott mather, chief investment officer at pimco joining us. back. >> good afternoon, bill. >> which market makes more sense to you yesterday's rally or today's 280 point sell-off? a lot of volatility here. >> well yeah that's been part of our thesis for a while. we think you will see a lot more volatility in the coming months. we always do around important turning points in monetary policy. this time it's happening in the context of a record divergence in monetary policy. while we expect the fed to move to a gradual tightening in the summer we have other central banks going in completely the opposite direction. that really is a recipe for increased financial market volatility. >> scott, are u.s. rates going down for a fundamental reason or is it tied for global demand for u.s. dollar assets? >> certainly a bit of both. we've seen sort of the traditional correlations return so when risky assets equities aren't doing well bonds are doing well so bonds are having a good day today. but in addition there's very likely to be quite a bit of spillover

over the past five months, total return funds formally run by pimco intermediate as well. >>> we begin market focus with a restructuring announcement from target. retailer plans to cut thousands of positions as part of an effort to reduce costs by $2 billion over the next couple of years. it also gave full year earnings guidance. it was better than estimates and said it plans to buy back $2 billion worth of shares this year and one of those shares were us today. a fraction of $78 even. best buy reported better than expected quarterliliesy lyies on a better than expected holiday season. 51 cents a share, boosted quarterly dividend to 23 cents a share and the company will buy back a billion dollars worth of shares. first repurchase since 2012. stock higher than expected finishing at $39.18. >> lumber liquidators reversed, stock sold off after 60 minutes on cbs. reported that the company sold flooring with higher levels of formaldehyde but upgraded rating on the stock to buy from neutral saying fears generated by the program are overblown. shares popped 5% to finish $48.78. activists sold

pimco is increasing its stake in u.s. single-family rental homes.irm buying interest in haven broke homes. that company manages 4000 rental homes in florida minnesota, and alabama. pimco began investing about two years ago. just under 30 minutes until the close of trading. our chief market correspondent is looking at the big movers. in this mysterious day, what were some of the big movers? >> a couple of interesting ones that do not involve billion or from omaha, let's start with tesla. it involves an american billionaire. it was sued. you have an analyst downgrade to underperform. the analysts are saying initial lower margins could pose risks to near-term earnings at tesla. lexmark is the other notable one. it is a 47% premium to koufax's last close. the quarterly dividend is not at risk. lumber liquidators making a bit of a comeback up 12%. federal regulators are investigating the company after a 60 minutes story this month. the reason the stock is rallying is because a consumer agency says it will not use the same test. they have repeatedly pushe

the bloomberg view columnist and former pimco ceo.sterns and bob evers for joining me. we are going to get reaction to the numbers. from the white house, we are just a few moments into the session. , i want to dig deeper into the surprising jobs report. 200 95,000 jobs created last month. i want to bring in the chairman of the white house council of economic advisers for the white house take on the jobs. as mohamed el-erian was saying earlier, this is a loud report. it is a feel-good report for the public. if in that wages are still pretty stagnant they are not growing as robustly as the jobs growth would suggest, are you worried that despite this good number americans aren't really going to feel it? ; you will's desk you will let me stay on one second on the lower before the wages. -- >> i hope you will's -- you will at least a for one second on the wow. we are going through what is really an extraordinary streak. job growth average is 260,000 per month. it is something most people didn't expect. we should be happy about it. to get t

can some ways, they are going back to this place the home to oak tree and tcw and pimco.re are a lot of big, big asset managers on the west coast. mark: jefferies, it seems they want to be out in the pool with these guys. lisa: on the flipside you have other firms saying we are living in the era of technology, why can i pick up the phone and talk to somebody on the west coast? do we have to be there? mark: his present everything? -- is present everything? -- presence everything? lisa: is it better to have the year to the ground with investors or bankers? mark: does it really matter to financial markets or is this a cfo thing? lisa: i went to a panel this week and somebody asked the panelist what is your number one concern in the debt markets? they said liquidity or the ability to trade. this is the number one concern for some of the biggest people as banks and asset managers. people are wondering, what is the new landscape going to look like and how will it make a difference when the tide does turn in bond markets? the federal reserve might hike interest rate as soon as t

> well, we own european bonds. >> euro can't survive, says pimco.s of europe and seat all authority to -- >> the comments that are put in paper are inflammatory relative to what my colleague said. we're optimistic in the short run. it does have to change the way it does things. of course, as michelle knows. there's a lot they need to do. >> wait a minute. they blew it up. >> inflated it? >> we're invested in -- we're very optimistic about the convertibles. bank capital. >> something we don't have in the united states. >> i got a little sick to my stomach watching assad tell charlie rose if -- did you see him say that? if it bleeds it leads. coming from you that is a very weird statement to make. and the guy was -- i mean for the brutal dictator he is he's pretty smooth. >> he always has been. >> if it bleeds it leads. >> kevin, i want to ask you later, the beaten down bond market. going to come back with a vengeance. >> thanks tony. >> do you come back and visit staten island and remember your friends? >> i have a place in staten island. my family's

he works for pimco. good to see you. what do you think the fed will say and is anything the fed is likely to say today going to change anything you do later today? >> yeah, good morning, tyler and andy. the fed will remove "patience" but they want to keep a summer timetable for people's expectations. and we think that is really appropriate. of course there are many people that wonder if there is some sort of you know, apocalyptic armageddon scenario that unfolds if they move off zero. we don't think that is the case. we think they will indicate the costs and risks of staying at zero are greater than the costs and risks of moving. we are sticking with our view they will begin to move rates in the summer time. but they will be moving very slowly not many mechanical fashion up to a neutral policy rate of around 2%. but that's probably the best way to prolong the expansion. we are in a different phase of the monetary policy cycle. that means they are continue to be pressure for the dollar to move stronger. it probably means

. >>> pimco pulling back -- i can't see you, but i hear you -- pulling back expectations for u.s.5 to 3 this year. here's richard managing director e richard, why the move? what do you see out there that worries you a bit? >> well you know there's a modest pickup in u.s. growth and two and three quarters percent, and we see modest pickup in growth in europe. downgrading our outlook for china and some of the key emerging markets. the global economy as a whole, roughly 2.8 to 3% growth in that range. >> solve the problem, we heard from the federal reserve yesterday, they, obviously, backed off their progressive projections, dovish and i'm not going to toot the horn but for a couple months, i've been taking heat for it the u.s. economy could suffer from lower oil prices. that's not just all good news because of lower gas prices. how do you at pimco view the lower oil price scenario in the frame of reference vis-a-vis the overall economy? >> there's a couple factors, one, lower oil prices are a net positive for the u.s., more winners than losers. the real head wind for the u.s. econom

pimco's bond etf, we have two etfs that are five star etfs ttfs and fwdd both domestic managers.hen you get your ranking it's compared to the rest of that mutual fund universe. >> i know jeffrey gundlach recently did an actively managed etf. in the bond market i get it. >> do you have any currency etfs? >> we do. our most popular etf as of late is a long goal short euro etf. >> this is dennis gartman's favorite trade. >> absolutely. >> good stuff. good to see you. thanks for joining us today. >> thanks. >>> time for a cnbc news update. sue herera, what do the headlines look like this hour? >> i'm going to tell you. a new case of ebola has been diagnosed in liberia. it had been two weeks since the last case was reported in that country. officials there were hoping to soon be declared ebola-free. the new patient is reportedly female and at a treatment center center. >>> atlanta federal reserve president dennis lockhart says he expects the u.s. central bank to raise interest rates at its june, july or september policy meetings. lockhart made the remarks in a speech at the university

bill gross from janis, pimco's chief investment officer.m investors position their portfolio? we have a number of five-star money managers with their best plays from individual stocks to etfs to dividend plays. this is all leading up to the fed chair yellen's news conference at 2:30 p.m. eastern. which we will carry live for our viewers. two very big hours of power ahead. back to you on fast money halftime. >> thanks so much. we'll see you then. >>> starbucks annual shareholder meeting is set to kick off moments from now. jane wells is live in seattle where there's a lot on the plate or in the cup today. jane? >> scott, starbucks has just announced it is rolling out a delivery service along with a new mobile ordering and pay system for its app. the app function rolled out in the pacific northwest this week will be national by the end of the year starting in seattle in the second half of this year teaming up with post mates to deliver starbucks a second option will be starting in new york around the same time called green apron a service to

manus: and that is what pimco was saying but we are miles away from that.e running a suboptimal currency union because we are not on the way to political union and people do not see that happening. we need another event to push us in that direction. manus: we have a limited period of time, the dollar correction is near completion. friday evening, rates may be raised in 2015. but the cycle will be unlike anything. what does that mean? han the incentive backs: -- hans: the incentive bank wants to because shows. there is a gap between what they are telling us and what the market says the radios. you start hugging -- rate is. you start hiking the rate to what is indicated by the dots, that might be a violent adjustment. mrs. yellen is trying to make sure there is a volatility control. when the central bank is hiking interest rates in the case of the united states, bearing in mind that 63% of international loans are in dollars and therefore 63% of loans become more expensive that by itself is a volatile event and to keep the volatility control may be one of the

the fed could raise rates in june according to the former pimco c.e.o. bill gross.rediction in an interview with bloomberg. >> what has been promoted has been potential bubbles and n the stock markets and in bond markets and i think the fed is willing at this point to at least acknowledge that buy raising interest rates 25 basis points in june. >> and you're looking at live pictures of russians preparing to bury the murdered opposition leader in a funeral service. he was killed just before he was set to lead a protest against president vladimir pute. he happened to lead that protest over the weekend in the event that turned into a march. 50,000 people marched in his memory on sunday. 7:45 here in london. >> barclays just reported fourth quarter 2014 results. joining me now is the c.e.o. anthony jenkins. first interview of the morning. welcome to bloomberg. thank you for giving us the time. looking at the numbers, good news. 5.5 billion pounds. profits up. barclay card. variable compensation is down. let's goat the provisions. 750 million pounds extra for foreign exc

the former pimco ceo made his production in an interview. mr.bbles in the stock market and bond markets. i think the fed is willing to at least acknowledge that buy. raising interest rates -- a knowledge that by raising interest rates 25 basis points in june. francine: back to the geneva car show. hans nichols with another top seo. -- top ceo. hans: i'm joined by the ceo of audi. hyoyou outsold mercedes and bmw. mr. stadler: we are quite happy. we are more happy about the results of 2014 as a whole. we are keeping the number two position in global markets. let's wait and see. audi will see growth this year. hans: we have the e -tron behind us. why would i buy an r8 e-tron there are other electric vehicles? mr. stadler: drivetrain technology is moving on. you have to show up with technology. the e-tron is packed with a six-cylinder. the r8 e-tron is a pure battery electric vehicle. this technology will show what is coming next on the battery electric vehicle. hans: the r8 e-tron competes directly with tesla and the i8 f rom bmw. mr. stadler: the

i should note in the last two minutes, pimco, the largest maritime shipping organization in the worlds no indication of any yemeni -- any disruption to shipping through the strait up and down the red sea. tom: elliott gotkine, thank you so much from tel aviv. much more on this today from bloomberg television and radio. brendan: i'm looking at a press release coming straight out of the public prosecutor's office in dÜsseldorf. they are saying they have searched the home in dÜsseldorf of the copilot, andrea's lubitz. they did not find a suicide or goodbye note. what they did find is evidence of a current illness that was being handled by doctors. we are looking at our current prescription lots of evidence that this is an existing illness . i'm trying to figure this out as we go along. tom: many headlines that we will piece together. much more from dÜsseldorf and germany through the hour. also coming up, a conversation with howard lindzon on american technology. it is beautiful in new york as we come into the last friday of the first quarter, 2015. ♪ tom: breaking news here in new york.

brian: i am shocked that the headline is rosie and pimco do not agree with each other. i am shocked by that. i think we are not going to see comfort ability and until bond investors start selling. olivia: perhaps they are going into negative territory. they were triple digits today and today they are in the low 20's. brian: over the last 15 years the standard deviation of earnings growth has dropped considerably. think about the cash of these companies are throwing off and the dividends a are paying. what about price to sales ratios? they are lower and more consistent. olivia: the barricade's margins are maxed out. brian: the margin call is wrong for five years. here's the way like to think about the schiller pe if you use the schiller pe and apply it to two stocks, general motors and apple in 2000 and two -- in 2002, you would have sold apple and bought gm. how would that have worked out? olivia: the biggest field to the nasdaq rally. brian, thank you. coming up, talking about the explosion in traffic of oil on trains. raising questions about the keystone xl pipeline's

. >> we'll stick with the fed and talk about it more because former pimco chief economist was on "squawki thought the most fascinating his pushback against the idea a stronger dollar's bad for the u.s. yes. interesting you say that sara. i don'tfully think you knew what high was going to say. the former quote from mcculley when the fed might move weighing in on the debate with jim stewart. his take on the fed is they're going to let the economy run hot. >> they want to run it a little bit hot. you want to get close to five and you want to get through a period where you can see what inflation looks like after you get through the transitory effect on these oil prices. >> here's the new fed frontier, "patient" is out, in is the concept of see further improvement in the labor market with new long run unemploy minute rate of 5.1% and confidence inflation is moving back to 2%. the real x-factor in fed policy is that inflation number and when the fed will have that confidence moving back towards 2%. here's a way to think about it. here's the fed going for two, like a football game. 2% is the ta

former pimco chief economist paul mcculley will join us. "squawk box" will be right back. opinions. trust? whose analysis is accurate? how do you make sense of it all? a simple unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you pu

as we head to a break, here's what pimco founder bill gross said about hitting nasdaq 5000 yesterday.number. i think it reflects some over-valuation in terms of nasdaq types of stocks. a little bit of a bubble. not the same bubble as in 2008 or 2000. but certainly an over-valuation that might at some point be corrected. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the s60 sedan. from volvo. lease the well-equipped volvo s60 today. visit yo

and pimco still reeling from the departure of west last month.th of withdrawals. >> and we've got some breaking news right now on auto loans. and phil has got that data for us. phil, good morning. >> good morning, andrew. this data comes from experian. this is fourth-quarter data. the consumer continues to spend more and take out record loans. the record high for the amount borrowed now topping $28,000. at 28,381. where's the growth coming from when people go into the dealership? it's the six-plus years loans. six-plus i should point out because the real surge has been in seven years. according to experian you're looking at 12% to 14% of all auto loans now having a term of at least seven years. those 84-month loans have become particularly popular with certain brands. suvs and trucks because of the popularity, because of the demand. and because people are adding more content to those suvs and trucks that's pushing the up the amount of money they're borrowing. i know we're going to have mike jackson on in just a little bit. take a look at group on