david: this does not reflect what he did at pimco.ng performance of pimco for many years. you have a at the entire body of work. alix: very interesting. an exclusive conversation coming up. it is also hard with the volume and volatility. means you do not have a lot of the trading action. bill gross now joins tom keene for an exclusive interview on radio. take it away. m: we welcome all of you on bloomberg television and radio worldwide. tom keene in conversation with the gentleman retiring today but you know he will never slip away from the financial analysis of his cfa institute. bill gross joins us with janus henderson. congratulations on retirement. i want to get to the track record and the challenges you had. how did you get here? how was this decision made? did you make this unilaterally? unilaterally and in combination with my family it my partner, amy schwartz, has been almost a half a century of watching screens and waking up in the middle of the night to check asia and europe. that is a long time. i've a few super bowl rings

giulio: yeah, when you look at 2018, we had pimco outflows of about 8 billion.look at quarterly development in 2018, we had good quarters and then we had weaker quarters. the last quarter was indeed more difficult. we had about 30 billion of outflows in the fourth quarter. but as we go into the first quarter of 2019, we see that we get back to positive influence. one thing which is very important to highlight, we always look at the inflows and outflows. but i think what is really crucial is to look at the margin, which is about how much revenue you do at of the business that you bring in. and when you look at the managing for pimco and agi, you can see that it's going up. and it's going up, more or less, on a quarterly basis. so we see a lot of quality of the business. and this also explains why last year, our revenue went up. 6%.d revenue went up about and this is growth operating profit of about 7%. very good fundamentals, and yes there is some volatility, but fundamentally the business is developing really nice. nejra: ok, i fully hear your positive story and

brian: his pimco years, he was great. i think what really helped him out was he had scale and also it helps that it was a bond bull market during that period. yields were falling by and large. if you made some correct bets on andit, combined with taking appropriate amount of interest rate, it was going to pay off for you. i'm not sure i recall anyone t that was wildly successful, but i think just having the bull market of his that really helped out. with great stocking up in the u.s. lately, it has been a bit more tough going. guy: what does it mean for janus henderson? brian: for one thing, they are turning over the management of the fund to the team he was working with, but they are also renaming it. they are getting rid of the unconstrained moniker and just calling it absolute return income strategies, or something like that, which is kind of an interesting idea that maybe unconstrained has gotten such a bad name of their trying to rebrand it entirely. vonnie: we will continue this conversation. let's check in now on t

he set up his competition between himself and pimco.n it comes to performance and assets, he lost. essentially he is stepping out during a time of weakness. return antrained bond annual average of less than 1% over the past three years, compared to an annual average of nearly 4% for unconstrained bond funds, as measured by morningstar. bloomberg4% for the barclays bond index. vonnie: what was the trade that he did not get out of, that he would not let go? lisa: there were a series of problematic trades including trying to short the 10-year treasury, also believing german bonds would sell after medically with yields rising. also decompression, the gap between rates in the u.s. and german bond rates. it had why did to an presented levels. he thought it would contract. it has that only very recently. during his time it only widened out. vonnie: he is not getting out of the game completely, he'll be managing his own money. he has made tons of money for investors over the years. lisa: he grew up during one of the best bond markets for invest

obviously, that was a difficult separation on the pimco side, as well but you know, people want to sort of pile on, i think, in the short-term but the reality is that this is a guy who outtraded and outlasted and outmade for his clients and for himself, more money than 99.9% >> also is so true with so many stars, you had to be with him in the early years, to really reap the best gains that he was able to deliver you had to be with him in the early years, through the time when he got the most publicity and as all of that publicity came, it got very difficult for him. we see this pattern time and aga again. it's really hard to sustain that kind of outperformance >> i'm friendly with bill. i'm not entirely neutral here. i'll totally admit that. i've spent some time with him and he's always been super kind to me. you know when you're up here, sometimes people want to take you down to here >> sure. >> whether it's performance or personal life. you know what i mean it's just kind of the unfortunate ways that some people are but the guy built an industry. he built a fortune for himself made a

brian: he founded pimco which is now giant fund. later have is sort of maybe a bit more of a referendum on the unconstrained strategy. it says it all that they are changing the name of the unconstrained funds. the going to call it the absolute return income opportunities. the kind of telling about concern that the bond fund managers can go anywhere in up in the wrong place. explanation,reat brian. meanwhile, a quick check on the eight his business flash headlines. an investment group will buy software in a deal valued at 11 million dollars. it represents a 32% premium for the company's average stock rise during the 30 days leading up to february 1. buyers -- jpmorgan says there are number of companies that would be a strong strategic fit for apple. it's deciding to use potentially its massive pile of cash. the company could go after netflix. billions roughly $130 in cash. that's your business flash update. >> let's do a quick recap of what we're learning with help a vet. the biggest issue is fourth-quarter profit coming in up from t

economy is "in a good place," this as investors from pimco to vanguard say the fed has killed off theiate risk of a yield curve inversion. president trump's nominating senior treasury official david malpass to head the world bank. he is seen as a loyalist, a sharp it of china. the u.s. has traditionally supplied the bank leader, although member nations are encouraged to put forward their own nominations. there seems to be little appetite to challenge his choice. don't miss bloomberg's interview with david malpass at 1:30 london time. investors seem to be tossing aside concerns over italy's relapse into recession. the sale has allowed it to raise 8 billion euros, but the imf fall italy could still short on much have needed reforms, saying economic growth will remain below 1% through 2023. global news, 24 hours a day, on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. thank you so hows, much. breaking news from the reserve bank of india, a big surprise. cutting policy rates to 6.25% from 6.5%. we were asking ourselves if we would ge

pimco,tperformed like 100 basis points over and outperformed pimco.return and the been more constrained. tom: i was talking with tom in los angeles, and with the unconstrained model, the model of the phrase "unconstrained," what did you learn about the pros and cons, the difficulties of this phrase unconstrained? bill: unconstrained has basically comes to mean going anywhere. it was really to develop risk-taking. in the days of blackjack, you didn't put a lot on the table. for the past three or four years, the negative trade for unconstrained has always been germany versus the united states in terms of a spread. 10-year german bunds started out in my portfolio at 190 basis points over, and are now over 250 plus over. it's been the big decider, and probably one in which i shouldn't put too many chips on the table. ♪ nejra: coming up on "bloomberg best," more of the week's top business news. "star wars" takes a slice of a pizza chain. a remarkable inside story involving chinese tech giant huawei, a u.s. startup, and an fbi fix. david: do you believe tha

joining us now is mike amey, portfolio manager at pimco. good to talk to you.terling festival, sally said the pound has basically had a huge impact on the ftse, down nearly 196, huge impact on the ftse, down nearly 1%, a stronger pound not liked by the market but a pound that tells us what the markets are thinking what's going to happen with brexit. yes. the pound is one of the key bellwethers for political uncertainty in the uk. exit is the key source of political uncertainty. and file we see daily headlines on what the labour position is on brexit, what theresa may is dry to push through, the thing the markets are focused on is the risk of a disruptive brexit, a wto type of outcome on much the 29th, that's what the markets are nervous about because that's the most uncertain place you could put the economy. that probability looks like it's going down, as that probably goes down it means stirling can go up because there is less political uncertainty and ironically, for those of us with pensions, that means actually the ftse goes down in the short—term. it's a s

we will talk a little bit about that with pimco's head of public policy.de, the state of the union, it feels like it was 100 years ago. >> it dominates the news cycle, and then this year has already felt like years. jason: as you pull back from that and you have had time to synthesize it, what do you take know you look at infrastructure, but any hope for movement there? >> what we saw from the state of the union was really what we had seen on the campaign trail in 2016. president trump is consistent in terms of his priorities, he really reinforced his america first strategy and he talked about trade, he devoted time to immigration, and we know that issue important to the president. and then he did talk about infrastructure. of course, he did not talk about how to pay for it, and that is the premier issue, how do you pay for it without adding to the high deficit. jason: he did talk a little bit about trade. he talked about china. he when i meet with president xi ahead of the deadline, that may not be a terrible thing. what do you read into what we know so f

he alluded to his work with pimco. nejra: it was described as a conversation that you had with him.ss is a cautionary tale. that was an important interview and a great one. season,rn to earnings the european banking sector gets into full swing this week, they face revenue slippage and bad debt. analysts expect a bumpy ride. dani burger has the details. >> the focus is on italian lenders and french lenders because we have had this buildup among analysts. bnp, we could see as much as a 20% decline and we had u.s. banks come out what those numbers. analysts do not seem as sure that european counterparts are going to be able to survive that. reportingcgen thursday with 14 holds, 52% of analysts putting a hold rating on socgen. analyst do not like putting a cell on stocks. later in the week, we get the italian lenders, i mentioned investors paying close attention to these because of the italian credit story, the buildup on banks balance sheets. the word is contagion, it goes beyond the italian banks. i have a map that shows a bit of this. when we look at non-italian banks, they hold a lo

pimco up, mark easel of -- mark easel of pimco.ng like a brexit fatigue. i can understand you are tired. >> this is a disaster. francine: that was the commission, president jean claude juncker speaking in brussels. they race to break the breath -- brexit impasse as parliament prepares to vote. we thought there was evidence that the two sides were coming together. our comments like that from mr. juncker helpful? maria: they probably are not, but that is in many ways his role and he thinks he needs to publicly stick to that script. he says brexit feels like a waste of time, this is not the future, this is a deconstruction of the future. behind the scenes, both sides are working on this text. delegationw the u.k. has been flying in and out of brussels the entire week, so clearly things are moving. the attorney general be in brussels today, all eyes on him. anything he can say on the backstop to make sure the deal gets through, we will keep a close eye on. tom: what kind -- francine: what kind of a deal could they come up with? this wo

the 74-year-old founded investment firm of pimco, 1971.ne time the biggest asset manager in the world. he did leave in 2014. his retirement is official on march 1st. you're looking at a legend there. >>> shares of alphabet are up right now, this as the parent company, google will be in the earnings spotlight. they report after the close. we'll have a preview for you, what investors want to know. coming up, could apple make a play for netflix. jpmorgan says yes. someone on my panel thinks it is too risky. we'll be right back. ♪ [knocking] ♪ ♪ memories. what we deliver by delivering. shouldn't mean going back to the doctoro just for a shot. with neulasta onpro patients get their day back... to be with family, or just to sleep in. strong chemo can put you at risk of serious infection. in a key study neulasta reduced the risk of infection from 17% to 1%, a 94% decrease. neulasta onpro is designed to deliver neulasta the day after chemo and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do

like pimco announced creation of its a.i. unit that will start in austin, texas.ll give the same answer, that is because of the high-quality workforce the state of texas provides. connell: that is a good one on talent because it reminds me of the amazon story a little bit. we covered it, in depth when amazon decided it was not going to come here to new york. when it made the announcement it said it was not reopening the search. it doesn't go back to austin or dallas, two of the finalists to give them a second shot at it, at least not yet. the read on that was they could not find talent in the numbers they could say here in new york. what do you say to that? >> we have large numbers, i think same week amazon made its announcement we made announcement where apple was creating a massive headquarters in austin, texas where they would hiring 15,000 people to work. but we're making announcements like that on almost a monthly basis. it was a few months before oracle created a 20-acre campus. announced they were expanding more and just last week google announced they were

stephen and former undersecretary libby at pimco. welcome to both of you stephen, let me begin with you what's your spidey sense tell you about what's going on? >> i guess, tyler, the real question is what would a deal look like? so i think there will be something positive to announce clearly, you're seeing some smoke signals to suggest that. but as kayla said, the question is, will they get at the real heart issues the president said a real deal must include those and those are going to be tough to get done. >> just so all the viewers and yours truly understands, when you say the word structural reforms, what are we talking about? >> it's not buying more soybeans, corn, sohrgum, fundamentally, not what the real issues are as it relates to trade. it revolves around the state support of business in china, the so-called soes, the state owned enterprises and the support they get from the state to create an unlevel playing field for u.s. and other non-chinese companies and the counterfeiting and theft of intellectual property which some

this as investors from pimco to vanguard say that yield curve inversion has been killed off. slowing inflation has given room to support the rupee every this is the first decision by the r.b.i.'s new chief. global news to four hours per day on air and at tictoc on twitter. i'm just lee humphries. this is bloomberg. anna: thank you. desley humphries in dubai. we return to the scene of banking. socgen cuts back. lowering targets. fixed income commodities currencies slumped 29%. we will bring you our interview with the ceo live to paris. that is next. bloomberg radio is always available. you will find it on your mobile device or on digital radio in the london area. this is bloomberg. ♪ matt: welcome back to "bloomberg markets." breaking news on nordea. chairman willthe step down. there is a new chairman being proposed. we have a lot of banking news today from socgen to unicredit and now to nordea. will step down. back to the big banking story of the day. socgen is cutting a key profit target and shrinking markets business after trading revenue plummeted. the results at to concer

debate and trade the biggest stories of the day joe tara know, pete najarian, erin brown is back here, pimco managing director and also with us on set is the president of yardenny research. fresh evidence that the economy remains robust that, read on gdp close to 3% for 2018 better than expectations for the fourth quarter all of it confirming to the president's economic point man larry kudlow where he thinks we're heading. >> these policies are working. so i'm going to say 3%, 2018 i'm going to say 3% 2019 and 3% as far as the eye can see. i'm sure we'll revisit that at some point. >> pete, it goes to the question we've been asking, whether the rally from the december 24th lows is sustainable or now vulnerable simply because we've come so far. >> i put it in the sustainable side of things i think part of that, scott, is the fact we've gotten through all these various hurdles about the next hurdle is still the chinese agreement. we heard larry talking about that today and how much more positive he sounded than anything we've heard before. that's his style, number one but he followed that up.

coming up on bloomberg markets -- the open, the pimco cio of global credit.jonathan: from new york city for our viewers worldwide. i'm jonathan ferro. the countdown to the open starts right now. ♪ jonathan: coming up, high-level trade talks resuming. china said to propose $30 billion more in agricultural imports. the federal reserve weighting the latest economic data validating that approach and a manufacturing trump in europe feeding anxiety. the ecb using options. from new york city, good morning. futures -.2% after a three-day winning streak on the s&p 500. a little bit softer. the euro a little bit cirque -- a little bit firmer at 1.1362. treasury yields grinding higher. we speak with our -- we begin with our top story. high-level trade talks resuming in washington. >> a lot of unknowns out there. >> so much relying on what happens with the trade decision. >> the trade talks will be better over the next six months. >> there

. >>> of course, well known for founding pimco, total return fund had many, many, many good consistentrformance recently. >> really pioneered the way of investing bonds. >> now would argue is no longer the case gunlock is considered a bigger figure when it comes to bond -- >> he's not the only bond king in the world. >> but in his time, though, he was absolutely the man >> and charitable. >> all right when we come back, the brady/belichick era. two agents are here to discuss it shares of xerox. excuse me, clorox. they're surging. >> they headache bleach. >> yes, thank you. >>> and kingsford charcoal did you know they make supplements too? >> yeah, they also make some food products like soy-based soy schaus. >> we'll keep going. trying to one-up each other on all the things clorox makes. they beat expectations and revenue matched forecast the company's bottom line got a boost in profit margins. jim cramer will speak to the ceo today on "d moy,mane" benno dorer. we're back right after this. we're drowning in information. where in all of this is the stuff that matters? the stakes are so h

. >>> joining us now to discuss, libby cantrell of pimco.hat are the odds of a shutdown starting on friday >> look. i think they're quite low, actually if you're a member of congress, you're going to try to extract everything you can from the opposite party however, you realize that the political costs and the economic costs are simply just too high so i don't think that a shutdown would originate from congress and trying to find a resolution or extend the deadline beyond friday however, i think the big question mark is what does president trump do it is not clear that even if the congressional negotiators come to a deal to sign that into law and may declare this a national emergency on the southern border. >> i'm surprised you say that because i feel like the sort of reason behind not going as far as a shutdown is losing face which he decided not to push ahead with last time would he not be hurt more from declaring a national emergency >> he could declare a national emergency and even if it's contested in the courts, it would allow him to d

janice henderson about having a hedge versuske bond portfolio demonstrative success in total return at pimcoe narrow bond portfolio or do you just have to go more diversified come up more on prospectus and away from an ad hoc shop? alberto: we are very focused on credit. hedge a macro overlay to micra risks. -- macro risks. you have to have a directional bias. we believe you need to be either long or short the market. it is hard to perform if you are always long short in this environment. banks have reduced the volatility of assets across the world so there are sometimes very few moving parts. we believe in a directional approach. nejra: we have talked about volatility coming back at the start of this year and the end of last. you talked about qe infinity which seems to be how we are setting off in 2019 with the fed on policy, no prospects for the ecb to normalize, and the 10 year jgb yields in negative territory today. do you really see a pickup and volatility this year or will it stay subdued with q8 infinity? alberto: we think there is no recession this year or next year. economies tend t

then you have voices like pimco this morning saying time to derisk, sugar high is almost over david rosenbergut as, you know, tweeted earlier today, all of these things flying in the face of the market these head winds and it doesn't seem to matter the market continues to go up as you said, we go up eight straight weeks, could be broken today. there is a positive bias in the market. >> for more on this and closer look at the markets, let's bring in mona mahajan. good morning happy friday good to see you. what do you make of scott's take, the market wants to bubble up to 2800 maybe and beyond? >> i think a few things have shifted since the downturn since december 24th lows the first and foremost is the fed. we have seen a little bit of a 180 from them. not only the fed, though, it is global central banks, saw the bank of australia, the bank of india, the bank of england all in -- the australian and indian banks surprising on rate cuts. the ecb is probably on hold now. and chinese central banks are in stimulus mode. we're seeing this background now where really what is driven the markets over t

the federal reserve chairman said the economy is quote in a good place, this as investors from pimcond vanguard say the peg it has killed off the immediate risk of yield curve inversion. president trump is nominating a senior treasury official to lead the world bank. he is seen as a loyalist, a sharp critic of china, and keen on a shakeup of the global order. don't miss our interview later. says he expects to announce all of the territory once held by the islamic state has been one back. partsoup controlled large of syria and iraq but has lost the best majority of the territory due to global and international military efforts. pompeo is reassuring allies they're not being left behind by the presidents troop withdrawal plan. nott is a tactical change, a change in the mission. theoes not change structure, design, or authorities on which the campaign has been based. it simply represents a new stage in an old fight. >> the global search for sovereign bonds seems to be good for italy. investors are casting aside concerns of a recession. they have raised some 8 billion euros, but the imf w

pimco with the credit opportunities fund at the nasdaq, women and toys represented by their 2019 mentoree. i'm reminded of buffett's 13 f and the way he trimmed apple to the point about cell phones. >> trimmed apple and i don't know we had a push, but, look, cell phones, apple is having a hard time getting past this level. and i think that's because the narrative now is the 20-second narrative, this is a bad quarter for cell phones. i have not seen anything about companies making anything with cell phones that would contradict that. it is not a good time. google and amazon, web services, and, azure, which is doing very well, i know ibm -- very good piece by adam washinsky yesterday in "fortune," which i love, did ibm overpromise on watson was watson -- having played against watson, but i do think that ibm is trying very hard to -- they have to build out everybody has to build out there was a pause mentioned several times in the nvidia call, there was a pause in growth, in tech, a lot of it having to do with macro, and not -- and china china macro came in very negatively on the invidia c

with is the signal to pimco? nicola: what we are seeing in europe is a significant slowdown.h steeper than most were expecting. we have been surprised by the slow down and i think we have to recognize that there is factors in europe disturbing the data like droughts in germany and protest in france. i think there is a deeper underlying slow down which has led to global trade being weaker. in this environment with inflation still very low, i think we have to expect the ecb to remain very patient. with think in march, they will push the forward guidance out. the rate hikes will be pushed out. it's not even clear the icy -- ecb will hike at all. in this environment, bunds at 10% -- 10 basis points look pretty reasonable. francine: how distorted is the bond market right now and when this that distortion end? nicola: i don't think there a massive distortions. the cd will be on hold for a long time. the term premium on the long end of the current is quite compressed. the country is running a budget surplus. i don't see it as particularly distorted. with evaluations are fairly decen

. >> hi investors announcing that 74-year-old bill gross will retire march 1 could foubed pimco he woermds the only chance to save up to 45,000 jobs keep 133-year-old retailer in business the ask you bid is as opposed by creditors want the company shut down like dedicated. >> new england patriots taking down l.a. rams to win super bowl liii 6th super bowl win for tom brady are posted this video where rob gronkowski possibly prohibiting at "gronk"'s return next is on looks like weighing option before smiling maybe not yet ready to retire as many inspect latest but basically stitched together with duct tape at this point. >> "washington post" under fire expensive ad during last night's super bowl. >> when our nation -- >> there is someone to gather the facts. to bring you the story no matter the cost. . >> a leader at post criticized the ad tweeting post paying 5 million for 30 seconds, to out to journalistic freedom during one of the glitziest, concussions more in our country jeff bezos seen engagement in roger caddell's box. >> adam levyine half time performance gardened attention especia

he founded pimco, the giant bond fund in 1971. he moved to janus. now he has retired.%. >>> how about the price of gold? i think we're still positive 1300 bucks an ounce. down five at 1316. the price of oil, back to 54, $53 a peril. oil way down today, a 3% drop in the price of oil. >>> let's get to venezuela. a number of european countries have now recognized juan guaido as the interim president of venezuela. president trump says, he is not ruling out military intervention against the disputed president maduro. mary anastasia o'grady is back with us, "wall street journal" columnist, very knowledgeable person about venezuela. that you are. >> thank you, stuart. stuart: seems we may be at the endgame this week. tell me the latest. >> the military is still hanging on with maduro for the most part. stuart: the air force guy isn't? >> that is one out of something like 1000 flag officers. there is a few people in the mid ranks, came out and said i'm breaking, very, very publicly. but i think the reason why we should hope is that just as you point out, the world is basically