what is the big picture around out kos and income -- outflows and inflows at pimco?e had about 8 billion largeflows, driven by the mandate. if you adjust for the large mandate, the outflows at pimco were more or less at zero level. what is important when you look at the six months, inflows at were about 11 billion euros. in general, we had a strong inflow. the revenue we are generating out of the inflows are positive, so that is an important kpi to look at. also, we saw positive inflows in june and july. when you look at operating performance of pinko -- pimco, it is very strong with 20% adjusted for fx compared to the level of last year. momentum ina slower the second quarter, but now, we see inflows getting back to positive and underlying performance of our pimco franchises very strong. nejra: that is asset management. i want to ask about acquisitions. are you making to look any in the near future? i generally do not make comments about acquisitions. i can tell you what we did. there was an announcement a couple of weeks ago that we are repair servicef provider and

caroline: we thank you mark kiesel, pimco cio.loomberg. ♪ caroline: we take you live to the senate floor for you have just seen the confirmation of richard to be vice chair of the federal reserve for four years. momentarily, there will be another vote to see if he is expected to confirmed as a member of the fed on february the first, 2022. this man was a prominent economist and global strategic advisor to pimco. he is unlikely to shake things up. the dollar is not reacting. there we have it. richard confirmed by the senate as the vice chair of the federal reserve for four years. "what'd you miss?" apart from that, italian assets remain under pressure. the tenure bond yield is reaching highs nonsense back in may. his italy somewhere you want to be invested? garrett -- david wade an earlier. earlier.d in >> the political situation has never been stable. it has 66 governments since post-world war ii. this is the place that tends to be politically unstable, but i would add is also a place that still functions despite the political ins

jon: i spoke to pimco and then i spoke to blackrock. income is now the important components.apital return side of the story is not there anymore. the income component is a much more dominant, is that your view? george: i agree. that is why assets are in high demand. yet the offset the losses in the principal side because we are going to see one more like of the bear market. you want as much class flow as possible. jon: talk about this, where is it? >> it is an hibernation. jon: i do not see this bear market. do you? kevin: i do not. lacking the principal legs it needs and that is inflation. primarily wage inflation. as i said before, when you throw a stronger dollar on top of it, you are going to create demand globally and that is why every auction is oversubscribed and better than the last one and will continue to be that way until we see a change in prices. where is disinflation that the tariffs is supposed to bring in where all these other things we had thought? jon: give it time is the message that comes. we are talking about this through the prism of looking at u.s. mark

i spoke to pimco. and blackrock.he totalhad said of return, income is now the important component. the capital return side of the story just is not there anymore. the income component is so much more dominant. assets are always in high demand. overall, income to offset the losses for principal side, we will still see one more leg of this bear market. which will hit the principal side. you're an loss, as much cash flow as possible. it is an hibernation. >> i don't see it. , iteration.its over the last few years. it is -- it lacks the principal legs it needs. that is inflation. primarily wage inflation. before, when you throw a stronger dollar on top of it, you are going to create demand locally. that is why every auction is oversubscribed and better than the last one. it will continue to be that way until we see a change of prices. where is the inflation the terms were supposed to bring. where are all these other things that we had thought was going to -- we are talking about this almost to the present of exclusively

jonathan: i spoke to pimco and then i spoke to blackrock.lackrock said to me quite recently that of the total return, income is now the important component. the capital return side of the story is not there anymore. the income component is so much more dominant. is that your view? george: i agree. that is why assets are in high demand. overall, you need income to offset the losses from the principal side, because we are going to see one more leg of the bear market. it will hit the principal side. you want as much cash flow as possible. jonathan: talk about this bond bear market, where is it? >> it is in hibernation. jonathan: i do not see this market. do you? kevin: i do not. it is on its fifth iteration in the last three years. it lacks the principal legs it needs, and that is inflation. primarily, wage inflation. as i said before, when you throw a stronger dollar on top of it, you are going to create demand globally, and that is why every auction is oversubscribed and better than the last one and will continue to be that way until we see a

sheila from goldman sachs and mike from pimco stay with us.his time, could fixed income be the next big thing? we talk about that. that is coming up next. this is bloomberg. ♪ francine: economics, finance, and politics. this is "bloomberg surveillance." i am francine lacqua in london. let's check in on what is trending across bloomberg. the oscars will at a new category for next year's awards, best popular movie. the ceremony will also be shortened in an effort to win back viewers. the announcement of new sanctions against russia for the nerve agent attack in the u.k.. and our most read stories, and -- new york has approved a one-year cap for licenses, and efforts to reduce congestion. in second place, the buzz is growing about the new film of singapore millionaires. and the mystery surrounding elon musk's plan for tesla enters a third day. read up on that using the bloomberg terminal. let's get to first word news. russian currency remains weaker after the u.s. says they will sanction russia for a nerve agent attack. expects the measures to ta

mahirwara is chief investment oins us at pimco and he with more on that. you're waving a yellow flag in this regard. let's go through indicators you're watching. theirst is inflation. things are picking up, aren't they? >> yeah, we're starting to see inflation pick gup. noth dramatic. inflation's going to end this year around 2.5%, up from 1.5% last year. inflation is a lagging indicator, and the key thing is where we are today, if you're wrong about the 2.5%, all the risks are to the upside. whether it's from a trade war, whether it's from the trillion-dollar deficit that we're running at a 4% unemployment rate, whether it's from oil price spiking. it is one of the things we're watching. >> which leads you to being concerned about the correlation between stocks and bonds and the inability for the average investor to perhaps diversify. >> right. bonds are a great diversifier in a plain, vanilla recession, therapy treasuries would be your best asset. however, along the way as inflation starts to rise, you may find the stock -- bonds may not be such great di

coming up, pimco. more on what i'm watching next. alix: check out tv .h us online, go right the tv on your terminal. this is bloomberg. ♪ bloomberg. ♪ david: this is what i am watching -- a little bit of fun unusual story. the status broadcasting system, and a lot of some television, theirasically something bonds, but he entered a deal, pimco have a lot of bonds, the interview where they will be seeing interest, because they have a lot of cash coming in, and they are paying pemco a lot money,- pimco a lot of and you have people in the middle, the preferred shareholders, who are saying wait a second, at the same time the ceo likes this to keep going, and the poor chair has actually sued, saying you should buy our shares. alix: the company cannot go bankrupt, the bondholders are left behind. andd: it is up to pimco, they say no, we like it, we have got cash. alix: i am sure they do. coming up, jim caron, morgan stanley investment and portfolio manager. we will speak with him about richard carrin. -- richard clarida. this is bloomberg. ♪ . this is bloo

the seller is a pimco fund. -- the biggest deal the mortgage giant has done in its single-family rental program. got a boost from the world cup. second quarter revenue beat estimates. results were driven by growth in america and asia. adidas sold a record number of sponsored jerseys. still ahead, oil escapes the trade war for now. futures will be in focus. this is bloomberg. ♪ caroline: i'm caroline hyde. vonnie: on vonnie quinn. this is bloomberg markets. china leaving u.s. crude off its latest import tariffs list. let's bring in tim mulholland. he's at the cme. hell is oil escaping oldest terrorist threat when everything else seems to be falling victim? >> it certainly shows the importance of u.s. crude producers to the world and especially china. fundamentals have a supply demand situation that favors support crude prices. china exempted u.s. crude shows the importance of u.s. crude production to the world. vonnie: inventories yesterday were down. why did oil not rally on that? >> i think there's some concern

anthony crescenzi from pimco. christian schulz from citi economics.wells fargo is going to be joining us. we are going to be joining the conversation about the outperformance we're seeing in the u.s. this is "bloomberg." ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. francine: this is bloomberg surveillance. tom keene having a day off. let's get to first word news, starting in turkey is kailey leinz. has stabilized its currency and staved off a financial crisis this week. it faces a new threat. president trump says the u.s. will pay turkey nothing for the release of the detained american pastor, andrew brunson. the administration warns more sanctions could be coming if h

pimco saying its recession indicators are flashing yellow with the market in the late stages of an economicle. are they right joining us, bill stone at stone investment partners. guys, good to see you, this is a very consistent theme. we are late in the cycle. defensive rotation going on, are you following the trend where people are rotating in the defensive sectors? >> yeah, absolutely i noticed that it's probably been better for our portfolios than maniors because we are more of a defensive organization in how we invest and so the rotations are a little more helpful over the last month and the volatility is kind of renewed that we had earlier in the year. it's flashing yellow, though, the markets in some ways, certainly when i look at -- i've become obsessed with the yield curve and how flat it is and if the fed raises rates again in september as everyone thinks they will, how much flatter does it get unless they get the 10-year and 30 year. and before every recession, you do have usually rate hikes and strong earnings. >> you're worried about a recessionment when you hear about the yield

yacov arnopolin is an emerging markets portfolio manager at the investment firm, pimco.e raft of the issues facing the turkish economy. what next? what does this new economic model mean? we are waiting for an announcement of the measures and the new plan. realistically it is difficult to envision anything that would make a difference to investors 01’ would make a difference to investors or markets. hiking rates seems unlikely. maybe making concessions to the us in this tiff it is having over us passports being detained in turkey. i was reading about turkey and interest rates and you would think, logically, you have got a currency that is plunging. you raise interest rates. and yet there is a belief among many turkish people that the turkish lira's evaluation isa that the turkish lira's evaluation is a western conspiracy? dunne there is a western conspiracy? dunne there is that. president erdogan got elected in june is that. president erdogan got elected injune of is that. president erdogan got elected in june of this is that. president erdogan got elected injune of this

the seller is a pimco fund. it was facilitated by a loan by freddie mac.ggest deal mac has done in the single-family rental program. adidas got a boost from stock. posting second-quarter revenue and profits. results were driven by growth in america and asia plus adidas sold a record number of soccer jerseys even of the national teams it sponsors lost out in the world cup by those back to bite nike. deutsche telekom is posting higher for your earnings. that underscores the importance of the deal for its u.s. units in t-mobile. bush telecom is the market leader in germany and elsewhere where growth is hard to come by. that's the latest bloomberg business flash. >> one of the biggest movers, our stock of the hour. the company reported earnings last night. you see the transaction fell by 81% but you should negate that. the key is at the key is at. ad revenue was up. strong momentum. what happened with it, yellow was contracts. stop tying them into long-term contracts. here's a look at the bloomberg here. this boosted the number of ad accounts and what we have

black rock, pimco, i've also talked to asset management.re are a few investors talking about the selloff creating value because obviously we see in emerging market affect, the selloff has made a lot of these currencies much, much cheaper. the tricky thing is timing the entry point. obviously everyone sees the decline, they see the red on the screen. when is the selloff going to stop and when is the best place going to be to jump into the markets and get the best value? it is hard to time it. jon: we will watch it closely. thank you so much. lananh nguyen, bloomberg foreign exchange reporter joining us. when we come back, amazon versus bernie sanders. wordsch giant has a few for the vermont senator when it comes to the treatment of their warehouse workers. we have the details next. this is bloomberg. ♪ g. ♪ jon: this is "bloomberg markets." i'm jon erlichman in toronto. in newi'm shery ahn york. we are seeing u.s. markets mixed at the moment. amazon is one stock that is gaining ground or six consecutive sessions. pricing close to that $1 tri

not just on the performance side but at pimco he was mr. pimco, and it's not just the case anymore at his new company that's why his ceo is able to speak so freely about him. >> he's having a tough week as well bill gross lives in southern california and yet his divorce was the front page of the new york post because it's so horrific and unbelievable to read about to be him this week must be awful. >> i didn't actually see that but to get those kplents frcomm the ceo not great either >> after trade we're getting earnings results from true car, lionsgate and dropbox. t eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any of these types of plans, they could save you in out-of-pocket medical costs. call unitedhealthcare insurance company today to request a free... ...[decision guide.] with these types of plans... you'll be able to visit any

. >> rich has been working at pimco and he was working there with paul mcauley in 2014 who is the chiefconomist. when janet yellen talked about the possibility that they could let wage growth run, they could let it move higher because labor share of income has fallen so much over the last several decades. what that meant was that wage growth could go up without inflation necessarily having to go up. maybe they should let that run. paul mcauley deemed that labor share of thing from -- income rich's ratio. the fed andng to his ratio shows that labor has not recouped that share of income in this cycle. the question is, does that end up play a role in the fed's decision-making. it seems they are entertaining that and that is the struggle in terms of the fed debate. the focuslean towards on inequality and helping alleviate issues or should we stick with the inflation centric conservative approach. some of these are actually board members yet, are they? there is a bit of a question over whether martin goodfriend will be confirmed. his confirmation in the senate did not go well. is of the main

while i'm quoting people, why not bring in dan iversen's view on pimco. he said that it could benefit the economy. where are we, economics wise with trade tensions? ian: we had a great start to the year. the first and second sector were great with gdp, generally going the right direction. but the big question becomes one of timing. if some of these issues on the state will ultimately be the u.s. economy, does that occur in the third and fourth order, or three or four years from now? that is the side of that i come down on. vonnie: so, where does that put ian: i think then? we will probably invert into the fourth quarter, in and around december, predicated on that no pause from the fed this year. one of the big concerns we have right now is when does the fed respite, ande a really assess the impact of the prior tightening. vonnie: we are out of time, but that wouldn't cause a panic? ian: it would cause a significant rally on the curve. vonnie: we will have you back shortly, thank you for your haitians, ian lyngen -- for your patience, ian lyngen. from new

clarida has worked as a managing director at pimco.d by president trump back in april. >>> aston mart season geariin ip for a public offering that would value the company at more than 6 $6 billion the sports car brand is planning to list on the london stock exchange. >>> and a late surge in summer travel is lifting u.s. airlines and their stocks airlines forecasting a record 16.5 million people will fly between today and tuesday. trying to get in the last summer trip >> you travel all the time have you been on any plane anywhere lately that's not pretty much 100% full and people are arguing over the baggage space? >> never especially during the summer people are spending money on travel >> thank goodness you're always in 1a. >> phillip mena now with the headlines. >>> the nation is celebrating the legacy of john mccain this morning on what would have been his 82nd birthday. he will lie in state at the arizona state capitol today. the week of tributes continues with a memorial service at north phoenix baptist church tomorrow, then he wi

if you adjust for this mandate, the outflows at pimco were zero level. important if you look at the six months, the inflows were about 11 billion euros. in general, a strong inflow for the six-month picture. matt: all right. i want to bring the focus to the u.s.. wilbur ross signaled more pain ahead unless china changes its economic system. this as the asian nation repeats it will never surrender to u.s. trade threats. meanwhile, the latest round of u.s. jobs the data comes out at 130 p.m. u.k. time. still with us is our guest. war, it seemsade so big, fuzzy, and cloudy. and you cannot get your hands on what is happening. a lot more noise than signal, right? well, so far, markets have been trading fear rather than fundamental damage. surveys, coming off. but still high by international standards. that tells us the real impact is still ahead. there are several layers here. one is that the nontariff barriers will be difficult to roll back, because in a deteriorating geopolitical climate, it is difficult to see how some of those escalations of tension can r

clarida has worked as a managing director at pimco.ident trump back in april. >>> aston martin is gearing up for a public offering that would value the company at more than $6 billion the sports car brand is planning to list on the london stock exchange for 1.$1.29 billion. that's james bond's favorite car. >>> and yum china its holdings have rejected a buyout offer from hill house capital. yum china is the exclusive licensee of the kfc, pizza hut and taco bell brands in china. yum china's board decided that the offer provided no extra value or strategy for the business >>> u.s. equity futures are higher the dow is indicated up by 15 points the nasdaq up by close to 12.5 points the s&p up by over a point >>> aim just glad they put -- well, we'll talk about this. the heat at the u.s. open was so intense, it was in the mid 90s you have the asphalt, everything else officials allow a ten-minute heat break between the second and third or third and fourth set. novak djokovic in his first-round match, the audience saw him spew a couple times

lananh: we have definitely seen people talking about this on the wire and we have pimco's blackrock assettalking about e.m.'s are supercheap. there is huge selloff and red across the screen. when you get back in is the tricky part. if you do see a lot of inexpensive currencies, -- caroline: who catches that falling knife? joe: is everyone looking for what will break the dollar strength or cause the fed to tap on the brakes? is that sort of the signal people are looking for? lananh: i think that is the big question going into the rest of the year. analysts say the dollar is probably going to be modestly weaker to the end of the year. the question is, is donald trump owing to ratchet up the trade war? is he going to impose new tariffs? the haven forease the dollar? caroline: what was striking to me was the domestic fire it wasath trump and as getting hotter, as we saw the ohen and news on c manafort, he started looking at south africa. we start to see tweets about their and china in focus. how much is it easier to sit on the sidelines when you have this risk coming from the united states fr

. >> how are you guys feeling at pimco about whether a 4% level is sustainable >> i think 4% is probablyle, but the u.s. is still on a very strong track, which is something like 2.5% to 3% is quite likely we're still seeing the impacts of fiscal easing, both the tax cuts and lower government spending also the fed can remain gradual despite the strong growth, because there really is no inflation, pce in inflation is still 2 po.3%. i don't think we should underestimate the situation in china. if the u.s. puts higher tariffs on chinese imports, the chinese will depreciate their currency by more and that will have a global impact because of the chinese currencurrency, that woo be good news neither for developing markets nor for emerging markets. >> do you have any thoughts on how the chinese regime would move to save face? >> they don't want the economic pressure that's been propping up their economy or protecting their leadership or they wouldnwoul wouldn't because it's propping up the united states >> i think china will want to save face, so that's why i think a quick deal is unlikely i th

the president says the outgoing pimco ceo gave him the idea to study quarterly earnings over a meal.oing head-to-head to win a piece of the come back, a look at the winners and losers. lacking clear direction on the last trading day of the week. a mixed picture with the dow of 1% to rising for the second consecutive session. backhe s&p 500 carrying some of its earlier gains. it is essentially flat. inh is leaving the declines the nasdaq is down three tenths of 1%. amanda: the volatility inside commodities. volatilityeasure of and this is at early 2017 levels. up, thatee the spike is emerging markets turmoil strength playsar into weakness for u.s. commodities, and you can see a flood out of the commodities and a swing higher. >> let's discuss all of this joe.the metals, we thought we were seeing a rebound yesterday and now it is going down, it is brutal. >> a nightmare for traders this whole week. this is a chart you were just showing and it has been across the table. zinc, copper -- you name it, it is there. if there is any solace you take from this, the research and miller at the bm

madeding about how pimco millions of dollars off its spanish-language broadcast by not forcing into bankruptcyat meant spanish broadcasting system's will pay interest for it let's have a look at to talk. . study -- at tictoc how pollution could hurt the brain and lead to cognitive decline. on bloomberg.com. we are talking to the companies who are tripling their car production in china over the next decade. check those stories out on bloomberg, online and of course also on the terminal. we just talked about toyota. the company is actually said to be planning. sources are telling us that the company aims to manufacture 3.5 million cars a year by 2003 as well as boosting imports to the world's biggest market. asia autos reporting. kevin is talking to us about the story. kevin, start things off here, what is behind the plan? say, partly it is a race to catch up. toyota has been a little slow out of the gate. china has watched as particularly volkswagen has pulled ahead. like 1.4ld something million cars in china last year and volkswagen ngm are selling 4 million cars each. there is a lot of ground

bill gross was set pimco and went to janus with much fanfare. it rose steadily in terms of assets.say, this is a trend. saw the monday, i article with him and his wife. i was like, oh, man. and then you get hit with this? he needs to start giving it away for free, like fidelity. much of bill gross' money is in that fund? jason: i do not know the exact amount, but he has a pretty substantial amount as we understand. we will see how that goes. it evokes a lot of the hedge fund guys. i do not think bill gross has the ability, like many friends in the hedge fund world, to just convert to a family office. alix: also not good headlines. a programming note, we will hear from janus henderson ceo it today, 10:00 a.m. eastern. you do not want to miss that. david: now something that really matters to those of us and new york. dude, where's my car? i saw that movie. alix: you did not. [laughs] , lyft, this is a hot issue in new york city. city council is saying, ok, let's put a freeze for 12 months on the licenses for uber and because they drive around and create a lot more traffic and a lot o

. >> joining us now is keith marker, chief strategist and managing director at pimco, keith, would thesident were impeached >> i think we have two examples of nixon and clinton both impeached and the market did price in i think some risk premium, but i think the underlying forces in the economy have shown that pretty decent acceleration such that i think those forces are more important and the president has done some good with a pretty large fiscal stimulus plan, nearly 2% of gdp and that's working its way through the economy, very supportive of the market >> it does make you wonder what would happen to the markets. a lot of people draw comparisons to 1974, but it was completely different, especially with oil prices and the dollar, what do you think would happen with the markets? >> yes, it was completely different in '74, that was a stackflation period. as larry kudlow said, it's the economy, stupid. anded a long and as long as the economy is strong, it's not that important. >> we have the fed kicking off their meeting at jackson hole. there's one thing that's been longer than this lo

>> i think the vice chair role especially with somebody with the experience that for pimco, it's a capital expertise. so i don't necessarily know he's stacking the committee in any sense. this in particular is an appointment that's more about kind of know how in the industry >> i thought he was already approved >> all right, folks when we come back the trade war hilting one energy company hard to the tune of $40 million >>> but first shares of mcdonald's trading higher after one analyst says the customer experience revamp is ping f.ayof weigh in on that call and whether the stock is a buy, that's next. >>> welcome back let's have a look how we finished the day on wall street, which was essentially flat slight gains for all four of the major indices. finished up 14 points, the sector that topped the list was tech, and at the bottom was materials after a strong performance yesterday. >> also taking a look at some of the names that have been moving on earnings after the bell, too. hpe, let's take a look at that first. that comes after they beat on both the bottom and top lines. you can see th

they are struggling to get the pimco ipo away which would be the ultimate diversification step.happen anytime soon. investing in alternative technologies is standard. scarlet: like a hedge almost. liam: bright. they have made other investments along these lines. whether that has any bearing on would you be able to use sovereign wealth money to finance and take private tesla? i don't know. taylor: interesting. thank you. that was liam denning. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only networ