it is an obsessive thing that has driven me and drove pimco. when you get to be 71 even though you can figure it out intellectually, you don't necessarily lose it. erik: surely you must get there are people that must wonder why you are the most successful bond manager ever be doing this? bill: i didn't like how i left pimco, and i didn't care how the aspersions that somehow i might have lost my touch. i don't think i have lost my touch. i am in this seven days a week and 18 hours a day, believe it or not. that speaks to interest, and hopefully, the performance numbers speak to confidence. erik: how are you going to define success for yourself at janus? bill: more by performance than by assets, although i would love the assets to grow. when i came to janus, it wasn't with the intent of creating pimco 2. i recognize pimco 1 took 20 or 30 years, and that was not a realistic goal. it didn't mean that i didn't want to double assets every year, like i did at pimco. i had a reasonable sense of organization and the future. success, for me, would be def

when i came to janus, it wasn't with the intent of creating pimco two. i recognize pimco one took 20 or 30 years and that was not a realistic goal. it did not mean that i did not want to double assets every year, like i did at pimco. i had aid mean reasonable sense of organization and the future. so success, for me, would be defined by performance for existing clients. it has always been that way. erik: if it's not going to be as big as another pimco, how big would you like to get to be? bill: i have really no idea on that. have about $2 billion right now, some of that thanks to george soros, who unbelievably called me two days after i left pimco and said "bill, would you like to manage a half a billion for me?" and i said yes, sir. erik: is there a point to which it comes too big? bill: i think so in terms of active management. this is not to diss pimco. we know they have close to $2 trillion. and that's big. other institutions are big, too. i would only say that it is , with $2 billion, to move money. the liquidity is obviously better. it is less onero

we are back with mike amey, managing director at pimco.e, for draghi, does he wake up this morning and look at the euro-dollar and get a sweat? or does he have a smile? mike: i think he would be happier that they didn't move. the argument goes on the following logic. globally, monetary policy is easier today on the back of the head unchanged than the hike. in the short-term, you have the dollar move, some weakness in european stocks, which i think is directly related to the currency moves. in the grander scheme, global monetary policy is easier today than it would have been. if i were draghi, and i wanted to keep monetary policy as easy as possible, i would be happy. jonathan: is it a different story for kuroda, someone we know is targeting the effects channel? 20 is still a nice number for the boj -- they don't want it lower, do they? mike: i think it is a trickier story for them. their policies are fewer and far between. they have run out of fiscal room. kuroda, i i were mr. would be lessened enthusiastic about the action than druggie. -

i'm joined by1, portfolio manager at pimco. -- tony crescenzi, portfolio manager pimco.ye towards of treasuries and think that will persist until we get the jobs number that should put things to rest? tony: it does look like we are in for a period of volatility. once the moment of normalization of rates draws closer, doesn't look like we are on the eve of the fed raising rates. they will more likely wait until december. the markets are going through an adjustment process. rates might normalize. ,here are other things particularly the slow global -- the isnwing today index, airport that has been out -- aver 50 years suggestion the global economy is not faring well. that helps bonds at the expense of stocks. lisa: you think the risk of raising rates is off the table? tony: pimco has field questions about rates rising and investors showing concern about it because -- they cann low only go up. we would suggest the rest of the decade, rates will stay low. this is a reason to jump back into risk assets. in the united states, rates might reach the twos. japan, 1%, europe, 1%. a

breaking news on pimco. let's get right to matt miller in the newsroom. matt: the total return fund has fallen below $100 billion in assets for the first time since 2007. the total return fund at the end of august, 98.5 billion dollars. this is after 28 months in a row of redemptions. net outflows at pimco because people were concerned about interest rates or bill gross leaving them if they have been pulling money out since april 2013. it is the first time this find, which was a $300 billion fund at its peak, the first time since 2007 before the crisis it has worked with less than $100 billion in assets under management. pimco total return fund now has lower than $100 billion in assets for the first time in eight years. investors pulling money out for the 28, the 29th month in a row of outflows. doesn't look fantastic unless they feel like working with less money. bill gross says big is beautiful. alix: he likes big better. thank you. i want to take a dive into my terminal to look at what is really going on in the economy. you are looking at the import of

gross exit, and i believe he exited pimco. the co-founder, chief investment officer, left them about a year ago, right on the date, continues to bleed assets. the total fund is down 25%. neil: pimco is a large bond. >> 1.5 trillion under management right now. neil: of all types. >> mostly bonds, that's down 25% since 2014. yearly that amount since bill gross left in september 2014. here's what we know, they're planning layoffs at the company, they're discussing it at a high level. the management at pimco, i'm not saying they're going to do it, at a very high level to make up for the loss in assets, preparing for possible layoffs. neil: did they make any baddy bets, i thought they were doing okay. >> here's the irony, don't follow the celebrity out the door. bill gross was known as the bond king. assets under management maybe down but the returns are up. pimco's total return fund is beating both the s&p over the past year and the average bond. they're doing better. doing very well. an actively managed fund. neil: marries and mi

. >>> and charlie gasparino has new details on pimco. do you own a pimco fund? a lot of people do. friction in management could mean changes at the firm. we're talking layoffs and big once. charlie is with us on the "countdown." do you want to know how hard it can be to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace ♪ cough, dry mouth and sinus infection. nothing can reverse copd. spiriva helps me breathe better. to learn about spiriva respimat slow-moving mist, ask your doctor or visit spirivarespimat.com . lori: if you understand giant, there's new details today about it. just last week they announced their if you understand had fallen below $100 billion in assets in management for the first time since 2007. what does that mean? well, anybody who looks at these things looks at a metric like that. so now we're looking at management and having some serious discussions

we begin this morning with anthony crescenzi of pimco. he is truly one of the world pot experts on short-term paper. , our broncos well expert michael mckee, who sat in the front row yesterday. i thought mr. applebaum of new york times -- of "the new york times" had a terrific question about inflation dynamics. you followed it up with the glide path. how did the glide path of the central bank change yesterday? michael: the fed decision made sense, but the explanations fell short. janet yellen, as we saw in the sound out -- in the soundbite, said we are waiting for further improvement in the labor market and for signs that inflation is coming back. show theyforecasts expect further improvements in the labor market, and no inflation. so why are they talking about raising rates at all? they are suggesting still, according to the dot plot, a raise increase -- a read increase in december. tom: brendan, we got.-plot into the show. 06:09 -- it is 0 6:06:09. do they even get there with their path of inflation? janet yellen made it clear that they

pimco. it once ran the world's largest mutual fund. total return fund. assets in the total return fund continue to dwindle. falling below $100 billion for the first time in more than eight years after almost 100 million -- one of withdrawals in august leaving pimco with about a third of the money and managed at its 2013 -- matt: $293 billion at its peak. erik: that's when bill gross ran the total returns. matt: 28 consecutive months of outflows. they have been losing money. erik: this is still the bill gross affect. pimco is an institutional money manager more than it is a retail money manager. institutional flows are slow to respond to developments like bill gross' departure. many of the reviews that money managers were forced to undertake after gross left are just now, over the past few months, resulting in the kinds of decisions to reallocate from pimco to western asset management or blackrock or j.p. morgan asset management. matt: time to take action at twitter. in the three months since the company started searching for a new ceo, the slot -- the st

we also get pimco total return for formally the world's largest fund that he managed. which we are waiting. great stuff. thank you, mary childs. coming up, who is likely to take ?he top job at twitter more details on the twitter ceo search next. ♪ alix: welcome back to the bloomberg market day. i am alix steel. time for a look at the markets. 15 minutes before the closing bell. we will head over to matt miller. right around, it seems, the highs of the session, matt. matt: the dow jones industrial average is gaining more than 200 points right now. on the s&p and the nasdaq national i will show you those in just a moment, but, look, we are 200, but down 2000 from the may highs. we had a rough last month. we are up 211, i should say right now. we are up almost 2% on the nasdaq, which was hit hardest yesterday, so it is coming back the best today. it is not on a huge amount of volume, either. let me pull up my terminal. function,the svs which someone had written in about. i will show you the volume changes. changes.see the a neat function. at the beginning, it will show yo

we will talk to former pimco ceo mohamed el-erian. thousands of refugees are locked with a standoff in hungary and others are walking to germany as leaders fight over what to do. cameron said his nations will accept thousands more refugees. with the david miliband, the president of the international rescue committee and a foreign british foreign secretary. -- and a warmer british foreign secretary. british foreign secretary. ♪ brendan: good afternoon, i am brendan greeley. betty: i am betty liu. you have all of the indexes down right now. we are bouncing along our lows of the session. the dow is down by 255 points, off by 1.5%. are10 sectors in the s&p lower. financial taking some of the biggest hits. you can see jpmorgan, goldman sachs, bank of america all down over 2%. all 10 sectors in the s&p are in the red. let's move over to oil prices where the commodities are -- you can see that we are coming off of the gains that we are seeing this week in oil. the nymex is down 1.2%. brent is down 1.4%. we are onto our gains of a may see a s

i want to go to pimco. guy: looking for to that, jon.the program with a look at how the market story has been developing. this is the german 10 year. the reaction, yields coming lower here it -- lower. european equities, this is what we're looking at. a softer open. .5%. a softer open. you in the hands of jon ferro. see you monday. ♪ jonathan: good morning and happy friday, welcome to "on the move." i am in london, moments away from the start of european trading. let's get straight to your morning brief. hikes in global risks, tighter financial conditions, and stock inflation forces the federal reserve to keep monetary policy unchanged. is it a case of one and done? the u.s. bank signals a good it could fit in a rate hike but for 2016. --rging markets strengthen draghi and kuroda need to respond. i am looking at futures markets lower --. -- lower. a big rally in the european bond market. let's wrap up all of that with caroline hyde. caroline: happy friday. but maybe if you are on these markets, not so happy. we are expecting a down day f

net outflows at pimco because people were concerned about interest rates or bill gross leaving them if they have been pulling money out since april 2013. it is the first time this find, which was a $300 billion fund at its peak, the first time since 2007 before the crisis it has worked with less than $100 billion in assets under management. fund now haseturn lower than $100 billion in assets for the first time in eight years. investors pulling money out for 28, the 29th month in a row of outflows. doesn't look fantastic unless they feel like working with wes money -- less money. bill gross says big is beautiful. better. likes big thank you. i want to take a dive into my terminal to look at what is really going on in the economy. you are looking at the import of the four major ports in the united states, savannah, long beach, new jersey, new york. long beach has had a big increase in the last few months. what does this show us? we are buying stuff, importing things and buying things. that could be interpreted as a sign of a stronger consumer dollar. are buying stuff. that is what the ch

scot mather of pimco, jeff rosenburg, former federal reserve vice chairman and then bob daul. you're watching cnbc, first in business worldwide. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. good. very good. you see something moving off the shelves and your first thought is to investigate the company. you are type e*. yes, investment opportunities can be anywhere... or not. but you know the difference. e*trade's bar code scanner. shorten the distance between intuition and action. e*trade opportunity is everywhere. hi mi'm raph. tom. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here

the guy -- pimco, bill gross, guy who founded pimco, he says the fed should get off zero interest ratesmuch too long they've been on zero interest rates and that will fuel the next bubble in the economy. why are we at zero interest rates? this is the thing when the economy was in the gutter, this is what the federal reserve did to prop up the government. now you have carl icahn and others saying, this has gone on way too ugly and something is coming around the corner. they could be wrong, talking their book trying to make money. at least in this -- i just think it's so interesting he made this video that he's releasing. >> and donald trump is touting this video. >> carl icahn for treasury secretary. >> he was joking, maybe not. thanks. >>> coming up, hear why donald trump admits he may have been a little childish. >>> plus a former aide to david petraeus will respond to trump's isis plan which calls for putin to deal with isis in syria. >>> just in from homeland security. a new report suggests the u.s. homeland is in danger because of specific security weaknesses. hear what they found.

pimco will be here. stay with us.vision and radio, bloomberg "surveillance." ♪ tom keene: this is what the professionals watch. copper. it is moving in the right direction. to 239. is up that is a huge deal for the system, financial construction of the commodity business. i am watching copper futures. michael mckee: this will give us an indication of where the economy is going. so far, things are slowing down. we have commentary this morning from the san francisco fed president. "wall street journal" interview. he says there are some significant headwinds that have developed. wo fed predicting t rate increases. -- he is doubting if they will do it once. there is a lot to think about. tom keene: we are nine days away from the annual extravaganza. what is going to happen in the next nine days to assist janet yellen westmark --? michael mckee: almost nothing. we do get retail sales. they will have to base their decision on what their forecasts are. williams is a voter. what he has to say is important. he is not as import

havelibbyrful to cantrill here from pimco. try to figure out where they are going whether democrat or republican, is there that we that wee-party, find a new calculus of party five years out -- four years out, eight years out, 12 years out? >> we actually think about things in a cyclical time frame. it's very unlikely. there is certainly an anti-incumbent, anti-d.c. attitude. you see that in who is pulling first in the gop. tom: jeb bush is not doing very well. >> that's sort of surprising. the most interesting rumor i recently heard was that bloomberg could be an interesting candidate. tom: who? michael bloomberg is founder and owner of bloomberg lp and also this radio station. >> you did that so beautifully. there is obviously an appetite for something that is not the status quo in washington. whether that means a third-party candidate is viable at this point even over the next four years or eight years seems quite unlikely. michael: we were excited about ross perot. but whatit's unlikely that means for whomever will be the

in other news, pimco has lost two thirds of the assets at its 2013 p.is overseeing $100 billion. the total return was the largest mutual fund until april 2013. investors have been playing out their money for 28 consecutive months. investors remain concerned about the impending that hike. be lookingooking to for a buyer for the ultimate aim is a management led buyout would allow the company to keep its outlet. they have lost three quarters of its value in the face of changing fashion and competition. warren buffett's chinese carmaker has announced its biggest ever overseas order, 10,000 vehicles. the deal was hybrid and gasoline powered vehicles. they have relied on domestic sales that have a presence in 30 countries across five continents. sony pictures says it will settle claims by former employees who say their personal data was stolen in what the united states believes was a north korean led hack. >> social security numbers, has numbers, credit cards, salary data. a nightmare hacking according to the employees who sued. sony pictures, the hollywood s

he's scott mather of the bond fund jind pigiant pimco. welcome back to "power lunch." they're a siren going by. a lot of dignitaries moving about town this afternoon. you think they should move. why do you say that? >> good afternoon, tyler and mandy. we do think they should move, probably less than a 50% chance they move at this meeting. we think they should move because the economy doesn't need an emergency policy rate. we should remember we're at zero rate setting for almost seven years. meanwhile, we're almost at full employment. so, you know, you can easily make a pro-growth story out of a rate hike. it's really the best chance we have of prolonging the expansion. so beginning to normalize rates now is over the medium term certainly probably good for growth and we think it's time to begin moving. the reason not to move, of course, is because of market volatility that we've experienced in the past month or two. but there's always market volatility. there's always episodes, always things going on elsewhere in the world, so that in and of itself cannot be a reason to

i spoke to pimco and they said there is a risk premium based on the outcome because people came out and openly discussed the grexit. do you see that reflected in the equity's of italy? >> i think the equities are different and in all markets you are seeing the comfort blanket of qe which is watching over everything. companies that we meet tell us that eurozone demand is improving and we see a fall in the euro and the oil price. generally the euro looks to be one of the more positive points. >> back in august, did you buy into it? >> we did not. in theects of falling chinese economy have yet to work through in terms of what it means for the global economy. some risk premium has opened up in terms of what the downside might look like. i think we are still predisposed to stay that way. >> when we talk about stocks, we talk about fundamentals. do you just reach for the u.s. playbook? look what happened in qe? >> we have been more positive on eurozone stocks. we are raising asset prices and getting the eurozone down, it's a positive for the stock markets. it will play out different way becau

left pimco, you are a very active social media maven.s that tell you the market will remain very volatile and this is why we are down over 200 points right now? >> today, absolutely. and indecisive jobs report comes a long weekend. and you will see a lot of over the paradigms. we are going from a paradigm of .ow volatility, a low growth all of this helped by the central bank to a paradigm of much higher volatility in a much higher uncertain global economy so we are shifting paradigms. betty: what would a rate hike due to the volatility? >> that is the basic issue. i have been supportive of a rate hike for a long time but i believeth there is a hike in september, it would be doing the right thing at the wrong time. the economy is ready for a slow monitor his vision of the monetary policy. the monetary policy should be normalized gradually. it would be the wrong time not because of what is happening in the u.s. but the global economy. now, you end up doing what china did with its currency change a few weeks ago and you end up fueling globa

from pimco will join us. he is an expert in the short term paper market.athan ferro said about the italian yields and the knock on effect. abby joseph cohen and will be with us on the equity ramifications. it was really something yesterday to see basically janet yellen do what mark carney did a few weeks before. francine: yeah, so should we abandon forward guidance? tom: i think that is a really important and a complex question , mathematically and economically. what i'm hearing from guest after guest is forward guidance is here to stay. a scarlet crystal ball gazing. question, the key thing yesterday was how the view out to 2017 came in. they brought the rate structure down in their forward guidance. from 12 months to 24 months. francine: thank you very much. we are looking forward to your show in 25 minutes. tom keene with "surveillance." emerging markets have a friend in janet yellen thanks to the fed cost decision. policy from asia and latin america can enjoy a reprieve to the slump in their currencies. for more on the gift to emergency markets, let's

four years ago, it was 4.25%. 2% -- pimco says 2%.ng on the topic of economic and markets, i want to bring in joe weisenthal. in 15 minutes, we're taking a look at one interesting call by david swall. telles what it is. : if stocks were doing well, bonds would typically do well. we haven't had a year where both stocks and bonds are down for the year. if you called the beginning of the year, this would be a negative year for both. he is looking pretty good on that call so far. also to your point, when you do have these assets selling off at the same time, it does do a lot. that can explain in part of the velocity of the move we have seen since august. jpmorgan has been all over it. joe: when you have a move that has not been seen in the market in decades, you have to figure in the trading strategies are going to not do very well and this is such an unusual environment. alix: especially when you have a triple digit selloff in the dow like today. but we did not see this kind of move yesterday. this was a very flat market when we ended th

pimco not quite convinced about december. it tweets no hike in december.ason to think the fed believes it will hike in december either. #fomc. we also have the council on foreign relations posting an article by a senior fellow for the international economic forum saying the fed sooner or later ll have to accept the global risks are an enduring feature of markets. rand paul tweeting if only the fed would get out of the way. -- it is es the fed not just prominent figures. people saying do away with the fed. one person replying and replace it with what? silver coins? that is a picture on social media now. back to you, rish. rish: thanks. a look at what's going on market-wise. hong kong, shanghai. rising at the moment. shanghai pretty much flat even though with have better housing data coming out with 35 out of 70 cities posting a gain there month on month. the nikkei being dragged down. 18,175. oming up, "asia edge." ♪ mark: i'm mark halperin. john: and i'm john heilemann, and with all due respect to cnn, we really appreciate all that native advertising. >> w

pimco founder bill gross wants a rate hike now. says near zero rates are hurting pension fund safvers. he says 401(k)s are on a revolving spit being cooked alive focused on models and nonexistent inflation. we will get a durable goods report and new numbers are mortgage rates. a lot that could move. >> i'm getting my popcorn and soda for the durable goods report. >>> the ceo of volkswagen is stepping down. he is out. 11 million vehicles effected here. >> i think this is outrageous. ♪ look how beautiful it is... honey, we need to talk. we do? i took the trash out. i know - and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. i

columnist-erian our and former ceo of pimco. pimm: still ahead on the bloomberg "market day."e are following markets on this friday, 9/11. betty: here is a look at some of the big gainers. ♪ pimm: this is the bloomberg "market day." i am pimm fox. betty: i am betty liu. we are making our way back from the lows of the session with julie hyman. julie: we're back from the lows in the session. we have had a drifting up and down over the past couple of sessions. a set cannot find direction. we are seeing stocks overall gain traction. energy remains a drag, and the stock story of the day. the s&p 500 biggest movers -- kroger and best buy are leaving on a percentage basis, but there are more deep declines on the negative side of the ledger. all 10 of the worst performers are energy stocks. to see oil pullback. something else interesting that caught my eye is the default swaps on investment-grade debt on energy companies. bloomberg intelligence highlighted this in this chart here this is a market index of .ll ingress meant great debt the credit default flops. the chances investors are

we will talk to former pimco ceo mohamed el-erian.f refugees are locked with a standoff in hungary and others are walking to germany as leaders fight over what to do. cameron said his nations will accept thousands more refugees. with the david miliband, the president of the international rescue committee and a foreign british foreign secretary. -- and a warmer british foreign secretary. british foreign secretary. ♪ brendan: good afternoon, i am brendan greeley. betty: i am betty liu. you have all of the indexes down right now. we are bouncing along our lows of the session. the dow is down by 2

joining us to discuss is the global economic adviser at pimco.ay it's not so much the decision that surprised everyone, but what was in the statement. why? >> yeah. i think it was a fairly dovish statement, more dovish than the market expected. i think it's clear the fed is confused, it's not surprised that markets are confused. what's going on here, the fed has one instrument to steer a two-speed itself economy. only one instrument, interest rates to achieve a dual mandate, and to play the central banker for the united states and the world as a whole. >> with all this confusion where does pimco think it will happen? >> it's a close call whether they go in december or not. i think it's basically what markets have been pricing in it's 50/50. if we see some prognosis grets towards the inflation objective, if inflation stops dropping but rather starts stabilizing and moves up, they will go in december. if not, it could be 2016. >> how do they exacerbate their problems if they wait? if you are waiting for emerging markets this is precisely the last t

the pimco founder bill gross, he says the fed should do it now. he says the fed should have moved. gross says near zero rates are hurting funds and economic growth. americans with 401(k)s are on a revolving spit tocooked alive. on a revolving spit. that is how i feel on my job. >>> donald trump on top in a new poll. launching new attacks on candidates. i mean all of the other candidates. wait until you hear what he said. we'll be right back. hey, you forgot the milk! that's lactaid. right. 100% real milk, just without the lactose. so you can drink all you want... ...with no discomfort? exactly. here, try some... mmm, it is real milk. see? delicious. hoof bump! oh. right here girl, boom. lactaid®. 100% real milk. no discomfort. and for a creamy and delicious treat, try lactaid® ice cream. you tuck here... you tuck there. if you're a toe tucker... because of toenail fungus, ask your doctor now about prescription kerydin. used daily, kerydin drops may kill the fungus at the site of infection and get to the root of your toe tucking. kerydin may cause irritation at the treated site. mos

he has been doing outlooks since the 1970's and 1980's since pimco. up interest rates asap, what is his main thesis for that? mary: he says capitalism is on the verge of breaking, pretty drastic, and this monetary place allpolicy in these years reduces the ability theseybody to save and pension funds and insurance companies, all of their business models are breaking, and he says it is dangerous and the fed policy only helps to spur asset price increases and has been discouraging any kind of investment in the economy. alix: did he give any sense of his forecast for rate increases? 25 dips is no big deal" turned the investment from the pension anytimed not returning soon, so did you talk about the case? mary: he thinks it will be slower than people anticipate. onook at what markets say what rates will be and there is a dispersion what people say they do not believe the fed and they don't think they will meet great targets. alix: meaning we will see a lower interest rate environment for longer? mary: right. it seems as if he is asking and x was retelling

much more coming up on bloomberg "market day" because a special primetime edition of "surveillance pimcon with ray dalia. ♪ scarlet: it is a 11:00 a.m. in new york and 4:00 p.m. in london. pimm: welcome to "bloomberg market day.: " the federal reserve's day of reckoning is approaching. scarlet: as prices decline, and a shift in the world oil. how the market may finally strike a balance. pimm: and if you like utility with your luxury, low, we have a bentley automobile for you and it comes with a big price tag of $260,000. ♪ scarlet: good tuesday morning. i am scarlet fu. pimm: i am pimm fox. we are 90 minutes into the trading day. let us take a look at how architect trading right now. let us take a look at stocks. scarlet: up near sessions highs and it follows as european stocks have come from losses. asia

plus pimco's richard clarita and scott from guggenheim. a lot to do. don't you go anywhere.is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. and i am a certified arborist for pg&e.ughes i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work, we work hard to protect the environment. getting the job done safely so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. the environment is there for my kids and future generations. together, we're building a better california. >>> welcome back. i'm eamon javers in washington where we are now just a week away from the deadline to fund the federal government or else we face another federal govern

bring in mark keisel from pimco. welcome back to the program. here is the obligatory fed question.the fed raise rates on thursday? >> hi, brian. we think the economic data supports a rate rise but we also think that the risk management with the global uncertainty and what's happening with china and inflation argue that they're probably going to wait. so the u.s. is doing good but globally we think the risks are such that they'll probably delay. our best case right now is that they'll wait until december to lift off. >> got that out of the way. let's find some opportunity. why are you so in love with the housing market? >> the reason why we like housing is the fundamentals. first, inventories are basically near 15-year lows. secondly, we're forming now thanks to very strong job creation, almost 3 million private sector jobs, we're forming 1.5 million housing -- household formations and we're only adding 1.2 million starts. so basically demand is soaking up supply, and importantly there's pent up demand on the sidelines. so you've basically got a third of the 18 to 34-year-olds livin

the dow has seen ten triple digit sessions in the past 11 but pimco was telling us on cnbc that this volatility in the markets should not worry us. this is normal in a rising rate environment which we're technically in given that the fed is expected to raise rates this year. yes. nasdaq, it feels like just from the people that come through our doors, it feels like there's not a sense of panic. we were talk about how the vicks jumped the other day and we were seeing these moves on a at aly basis here and there and even though it's called a fear indicator i'm wondering if it's a volatility indicator or there's more of this to come as opposed to the good old fashioned panic. >> i wonder how the wild swings will impact investor and consumer confidence because psychologically it has an impact. will it result in spending less? delaying purchases of big ticket items, autos, houses and it's something to watch to see if corporations see that they're delaying investments because of the market volatility. >> and more of them are saying we're sitting on cash. we're sitting on more than in the pa

talk about some of the biggest movers of assets like you just mentioned, these huge pension funds and pimco or janus, i guess, to me it could signal just a change about how people feel about investing in equities after such a long run. so one and done or they don't do it. i think the fed is damned if they do, damned if they don't in the very near term. and i'll just mention back to the technical damage that's been done, look at the s&p 500. 2050, which was support for most of this year, is now going to be massive resistance. i think we probably fail there. and then the nasdaq composite, 5,000. we're about 5% of the way from that. when you look at today the rally of 2 1/2% in the nasdaq, we could be there in days. so i'm with grasso that if you see u.s. equities rally back toward those resistance levels with china closed, i think you sell them. i think you use the opportunity to take some profits. >> got a news alert on bill ackman's pershing square. let's get to mary thompson in the newsroom. mary. >> reuters is reporting that ackman's pershing square hedge fund was down 9.2% in august. for

to touch on what was said about morgan stanley the other reversalmorgan stanley from what your old pimcoaid years ago, a coalesced central europe. i thought everything was clear in greece. spreads are wonderful. yields are wonderful in greece. is the crisis over? were you wrong? mohammed: unfortunately, the crisis is not over. they are not address the fundamental problem, how to generate fundamental growth in the eurozone. for now.alm people are awaiting the outcome of the elections. money has come back into the system, but it is basically paying creditors. a very little has made its way to the real economy. unfortunately, it has not been resolved. it has been more extended. the fundamental issue of generating economic growth within the eurozone for greece has not been resolved yet. you have a wonderful transatlantic perspective with your heritage at oxford and the diplomacy of your family when you were a child. in diplomacy now of migrants europe is original, something americans there may have on their radar. maybe it has been happening in the last few days. i would say this is borderli

the managing director of pimco spoke with bloomberg surveillance this morning to give us his take.ime to get zero. they have laid out that the liftoff is going to be very gradual now i can argue there is a difference between 25 basis point for the economy. obviously have yesterday she finally revealed that a week ago she had identified. she expects to hike this year. interestingly enough, stocks are up. i think that was the right move. >> did they have a communications problem? they do not seem to be able to get this straight. >> they have two issues. one, they have a challenging communication and a tough message to communicate. i think last week was not a success in terms of conveying where they were. toir yellen had a chance clarify her personal views on what they should do, she showed not to do that. should a speech yesterday where she did lay that. one could argue that if she'd given yesterday's speech at her press conference, we could have avoided the week of volatility. december,ise rates in then what happens? >> they have laid out a list off path that is consistent with goin

pimco flagship bond fund falls below $100 billion in assets.d a third of the managed -- the budget managed in 2013, shanking last year after the sudden departure of bill gross. amazon is expanding its one touch system for buying household products, they added 11 brands to its futuristic dash system, you can order goods by punching a button. they are free for amazon prime. update on the markets, we had to find somebody with an elevated opinion, tony dwyer is climbing a mountain this morning. he joins us as we look at the equity markets. i want to bring this down to the average investor, they have seen the turmoil and you are able and you say by now. sell me on why i should buy shares this morning. tony: the market correlates to the direction of earnings which remains positive. the ism while it was weaker it is above 50. even with the turmoil you are seeing positive economic activity in the u.s. that is driven by the yield -- drive thereates availability of money drive in by fed policy driven by core inflation. until you see a spike of inflation,

of pimco,ard clarida managing director's meeting with tom keene and michael mckee on bloomberg "surveillancend go -- "surveillance." still you how the ceo still manages to get an ivy league a hike. ♪ mark: welcome back to the "bloomberg market day." i am mark crumpton with pimm fox. to look at theg markets. investors came back from the liberty market with an eye to buy. the dow jumping as much as 338 points. we have a little bit of gain, the dow up about 312 points. the s&p is up by 1.9%, the nasdaq is of the most, by about 2%. all of this after a late rally in chinese stock market leading global equities higher. it is gains it brought nasdaq back in a positive territory on the year. and for the month as well. both the dow and the s&p 500 are still negative on the year, as well as for the month of september. dive into my bloomberg terminal. we can see all 10 sectors right here are in positive territory. this is the imap function if you are laying along at home. it's a broad-based rally we are seeing with all 10 sectors trading higher. industrials are the biggest gainers, up by 2.4% with ge u

. >> you first came to prominence in the emerging markets when you were running pimco's huge emergingts fund. we have seen incredible carnage in latin america due to currency and the underlying stocks getting hammered in a way that americans can't even imagine. the volatility in the u.s. has been bad, but they haven't seen nothing. are you dipping your toe anywhere in those areas of the world that have been hit so very hard? or is there -- the bank of international settlements over the weekend made it sound like there was a bigger storm to come. >> i discussed this, michelle, with you, with simon, with carl. there are two markets fundamentally unhinged. emerging markets and oil. opportunities are being created. as to whether you go in now -- it depends on your horizon. if you have no exposure, a 5 to 10-year horizon and you can live with the volatility, start now slowly. but if you already having exposure, wait a bit that will be a more attractive position. there's people stuck in those markets looking to get out. we'll look back on this. this will be a very attractive stage. one of t

you can buy the stock at 10.5 .imes pimco you -- pimm: you have been doing this for years.his remind you of? i've only been doing this for a few years. pimm: and you still have all of your hair, so you are doing well. [laughter] allergan is one, another one is mylan. the stock is down in this recent route. these are fabulous companies that organically are going to go double digit, they have very strong balance sheets. they are in a position to do transformative deals. so one of the macro pictures that we have to pay attention to , it started with china, and then spread to the emerging markets, the currencies are under pressure, they are plunging. brendan: panic selling in commodities. >> you have a divergent world. , andave emerging markets you have the u.s. economy improving. and you have us about to tighten and the rest of the world easing, it is creating turmoil. brendan: u.s. housing in particular, you said don't pay attention to housing sales, but pay attention to renovations. we have, i think housing across the board has a long way to go. housing sales are below house

likes of talk of from pimco with the fed holding off till next year.alling under 3% on 10-year note. might see biggest drop for oil price in more than a week. down 1.63, which is 3 1/2%. quick look at energy stocks while we break talking about oil because those are some. biggest losers in the s&p 500. neil coming right back. neil: so the great conservative thinker is not a fan of, well, the federal reserve. tom sowell say we don't need it. it has gone way beyond what we're needing it. randy what do you think what sowell is saying the fed went way beyond what they were supposed to do and making a real scrub of things? >> well, certainly the fed helped us to avoid a repeat of the grea i think the fed made a lot of mistakes in the 1930s. milton friedman, who was much more of a fan of the central bank had said really the depression became the great depression because the fed didn't act, didn't do what it was supposed to do. actually those things that that, you were talking about before trying to prevent thousands of banks from failing which they did in the

there's aspects that shouldn't be tied to the fact that some of the issues out of pimco. the guy's had a long career. but i agree with the basic premise. we've had central bankers wall papering for seven years now. and maybe if we allowed it to heal correctly, we could've moved on. so deal and heal. but seven years later, i don't know that anybody, including our guests would've thought we'd still be having the same conversations. and i'll be quite frank. i think four to five years from now, there's a good chance we're going to be talking about many of the same topics that we are right now. as far as interest rates, while we are on, we are getting close to 3% on a 30-year and 220 on a 10-year. curve's steepening a bit today. i continue to think in a three-week period with historic volatility to the downside in stocks, i'm amazed at lack of response. in the form of lower rates in the credit markets and i think that's very important and i totally agree with both guests you're not going to be able to handicap what's going on until we get, you know, two weeks from tomorrow wit

> all right, guys, just some breaking news from bill gross, janice capital management, formerly of pimconvestment outlook is out, we just got it looking through it here, you will forgive me for looking down, read a couple of things. well, thank you. just add -- paper appears out of nowhere. the best in the business. all right. here we go still looking down. gross talking about how the fed should raise rates in september. not saying they will, he is saying they should. but here's the big caveat, gross saying it should be more of a one and done type situation do this for normalization sake bar six months or longer, perhaps stay on hold. looking for opportunities, gross not seeing many of them. in fact, saying, i am going to read this directly, cash or better yet near cash such as one to two year corporate bonds with my best idea of appropriate risk reward investments. the reward is not much. but as will rogers once said during the great depression, i'm not so much concerned about the return on my money as the return of my money. so gross saying this zero interest rate policies have distort

he is the founder of pimco associates.argest short selling fund with over $3 billion in assets. good morning. >> good morning. >> rome is burning and you're happy about it, i assume. >> i'll take the four-day week in exchange, i think. i don't think rome is exactly burning. >> well, china's burning. >> china's not burning. >> well, here's the question though. where are we on china in terms of your call originally and where you think things stand now and where you think things will stand 12 months from now. >> people look at shanghai composite as a barometer of china. that's the wrong thing to do. i think anybody who's trying to figure out the chinese economy is looking at the wrong thing if they're looking at stock market. it's leveraged and subject to pronouncements as we know. the fact of the matter is the chinese economy since i was on "squawk" in february of 2010 was growing at 15% nominal. it's now growing at 5% nominal. it's 7% real, 2% deflation. it has been going down in terms of the economy about 2% a year. i thin

he gets fidelity, pimm: on the phone, and says that when he on thedelity, pimco phone, and says thaty also filed with an underwriter, interestingly. tom: what does that signify, somebody does not get a big fat fee? they are doing it themselves. that is the future. what he tells me is, there is an intrusion of private equity-like money into your world that was not there years ago. tom: kkr has a growth fund. vonnie: and with groupon yesterday, 1000 people laid off. amazing that groupon has 1000 people to fire. when was the last time anybody heard about groupon? the unit economics of groupon were not made clear to investors. basically selling $20 pieces to 10 -- for -- $20 pieces -- s iscally selling $20 pizza not sustainable. this is a local company that had a very good customer acquisition. it just happened to work only once. tom: henry paulson made his name at goldman sachs years ago, traveling middle america, looking at industrial companies, making legitimate deals where everybody won within the transaction. can that occur today ? rett: absolutely. tom: the transaction yesterday, s

joining us with more on this is the global strategic advisor at pimco. i said that right, correct?our last name? >> perfect. >> welcome. good to see you. also phil who is global head at fixed income strategy at jp morgan private bank. let's start talking about what they said this week. you think there's less than a 50% chance that the fed will raise rates. >> it moves up and down. they're obviously very atuned to global developments. a lot of volatility in global stocks and you heard jon williams last week san francisco hiking. >> do you think the market stabilizing a bit and coming back to some strength has been part of the reason that people -- despite that you don't think that they'll raise rates this time? >> we don't think they're going to move this time. we think it's going to move out to december or even january and much like rich said a big issue is international and especially emerging market which is is hurting china and the stronger dollar is putting a lot of pressure down there. >> are you okay with that? >> about emerging markets. >> about them not raising rates. >> i

we are hearing from medtronic this morning, earnings and revenues beat the seat and pimco's flagshipg 1.8 billion in net flout youth flows last month, still less money was pulled from the fund in the previous month. kell? >>> just a day away from the august jobs report, a biggie. we have some data breaking right now that shows august job cuts plunging more than 60% after surging to that four-year high in july. let's go inside the numbers now with john challenger, ceo of challenger, gray and christmas. john, eager for any scraps you can give us here to gauge tomorrow's jobs report. saying many fewer layoffs last month, right? >> layoffs were down certainly from july, which was a four-year high. and in fact, down from the monthly average this year of 54,000 the 41,186 we saw in august was a good number. it was up just a little bit from august a year ago by 2.9%. >> remind us what was going on in july, was that the energy space? >> it was actually big military cuts that pushed that number up above what is really going on in the economy, which is a low -- there's low pressure for layoffs

tom: speaking of lebron james with monetary theory, richard clarida will join us from pimco. "bloomberg surveillance." ♪ tom: good morning, everyone. "bloomberg surveillance" from new york city. we have coverage of the pope francis visited new york city today, and the pageantry from the white house as president xi visits president obama. what a busy morning. here are top headlines with david gura. --id: blackberry loss blackberry's loss was wider than expected in the second quarter, but they are going ahead with a new handheld device. they lost $.13 a share, four forecast.e than brooks -- volkswagen is expected to choose a new chief. bloomberg reports that the porsche chief will be named ceo today. could part of spain become a separate nation? the northeast region will start to answer that question sunday. catalonia will choose local officials come up separatist parties are expected to dominate that section. which includes barcelona, is spain's most rosters region -- most prosperous region. tom: the focus is typically on northern spain, the mining region. michael: catalonia i