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  • LONGEST SLIDE SINCE JUNE.

  • JOE: THE QUESTION IS, "WHAT'D

  • YOU MISS?"

  • MATT: U.S. STOCKS MAKE UP THEIR

  • MIND.

  • JANET YELLEN'S RECENT COMMENTS

  • ARE GOOD FOR INVESTORS.

  • CAN THE FUNDAMENTALS IMPROVE

  • ENOUGH TO KEEP THE RALLY GOING?

  • JOE: WALL STREET IS WAITING TO

  • GET MORE ENDOWMENT CLIENTS

  • HELPING SCHOOLS MANAGE

  • INVESTMENTS HAS GROWN INTO A

  • $100 BILLION BUSINESS.

  • CHANDRA: IN BRAZIL, THE

  • IMPEACHMENT TRIAL OF THE

  • PRESIDENT IS ENTERING ITS FINAL

  • PHASE.

  • CAN SHE CONVINCE LAWMAKERS TO

  • KEEP HER IN OFFICE OR IS HER

  • REMOVAL ALREADY A FOREGONE

  • CONCLUSION?

  • MATT: WE BEGIN WITH OUR MARKET

  • MINUTE WITH THE BIGGEST GAIN ON

  • THE S&P WE HAVE SEEN SINCE

  • AUGUST 5.

  • WE POINTED OUT THE LONGEST

  • LOSING STREAK SINCE JUNE HAS

  • BEEN SNAPPED.

  • GROUPLL SEE EVERY SINGLE

  • ON THE 500 INDEX HAS GAINED

  • TODAY.

  • OSP TO SEE WHAT M

  • IS GOING ON IN STOCKS.

  • YOU CAN SEE THE GAINERS.

  • I WILL CHANGE IT OVER TO NAMES.

  • WELLS FARGO, J.P. MORGAN,

  • BERKSHIRE HATHAWAY ALL BIG

  • GAINERS TODAY.

  • FINANCIALS LEADING THE WAY.

  • AS FAR AS THE LOSERS, BIG NAMES.

  • ALLERGAN, BIOGEN, AMGEN.

  • I'M PULLING OUT PHARMACEUTICAL

  • AND HEALTH CARE NAMES ON THE

  • LOSING SIDE.

  • JOE: IN THE GOVERNMENT BOND

  • MARKET, WE SEE A SELLOFF IN

  • SOUTH AFRICAN BONDS.

  • THAT IS ONE COUNTRY -- LET'S

  • LOOK AT THE U.S. FIRST.

  • LOWER YIELDS ACROSS THE BOARD.

  • WE SEE A PARTICULARLY SHARP DROP

  • ON THE 10 YEAR YIELD.

  • THE FACT THAT THE U.S. TWO-YEAR

  • DROPPING LESS THAN THE 10 YEAR

  • INDICATING A FLATTENING.

  • FRIDAY AFTER THE FED COMMENTS,

  • WE SAW YIELDS UP.

  • TODAY A REVERSAL.

  • LET'S LOOK AT A ONE-MONTH CHART

  • OF SOUTH AFRICAN BONDS.

  • THAT IS INTERESTING.

  • GROWING ANXIETY ABOUT THE

  • FINANCE MINISTRY AND POWER

  • SITUATION HAS SEEN A SHARP JUMP

  • IN THE LAST WEEK.

  • CHANDRA: I'M LOOKING AT

  • CURRENCIES STARTING WITH THE

  • DOLLAR.

  • WE HAVE SEEN THE INDEX HIT A TWO

  • WEEK HIGH TODAY.

  • WE ARE PRETTY MUCH UNCHANGED AT

  • THE MOMENT.

  • YOU CAN SEE THE DOLLAR OVER THE

  • PAST TWO DAYS.

  • FRIDAY SEE THE SPIKE ON

  • AFTER STAN FISHER SPOKE

  • FOLLOWING JANET YELLEN'S SPEECH.

  • YOU CAN SEE IT UP .9% OVER TWO

  • DAYS.

  • I WANT TO LOOK AT THE YEN.

  • WE ARE SEEING A STRONGER DOLLAR.

  • THEYEN WEAKENING AGAINST

  • DOLLAR FOR A FOURTH DAY AFTER

  • BANK OF JAPAN GOVERNOR KURODA

  • REITERATED HIS READINESS TO EASE

  • MONETARY POLICY.

  • EYE ON THE REAL AS

  • WELL, IT IS THE BEST-PERFORMING

  • EMERGING-MARKET CURRENCY AGAINST

  • THE DOLLAR TODAY.

  • UP 1%.

  • ON THE COMMODITIES FRONT,

  • LET'S CHECK OUT GOLD WHICH HAS

  • BEEN ON A LOSING STREAK LATELY.

  • IF WE LOOK AT A CHART OVER THE

  • LAST MONTH, HERE IS A ONE-YEAR

  • CHART.

  • WE'VE HAD A BIG RALLY SINCE

  • DECEMBER.

  • BUT WE HAVE TOPPED OUT LATELY.

  • WE HAVE NOT MADE A NEW HIGH IN A

  • WHILE.

  • OVER THE LAST MONTH, A BIT OF A

  • LOSING STREAK.

  • GOLD HAVING A SEVEN-DAY LOSING

  • STREAK.

  • AFTER A TORRID START, GOLD IS

  • FADING.

  • MATT: THOSE ARE THE MARKET

  • MINUTES WE ARE LOOKING AT.

  • WE WANT TO GET INTO THE DEEP

  • DIVES AND TAKE A LOOK INTO THE

  • BLOOMBERG.

  • I WANT TO SHOW YOU THE FUNCTIONS

  • YOU CAN PULL UP BY LOOKING, FOR

  • ME IT IS THE BOTTOM RIGHT-HAND

  • CORNER.

  • FOR YOU, THE BOTTOM LEFT-HAND

  • CORNER OF YOUR SCREEN.

  • I HAVE ONE ON OIL WHICH I THINK

  • IS GREAT.

  • THE ECONOMIST AT BLOOMBERG

  • INTELLIGENCE SENT ME THIS.

  • YOU SEE THE DIFFERENT OPEC

  • COUNTRIES AND THEIR PRODUCTION

  • GOING BACK TO THE 1990'S.

  • ONLY THE WHITE LINE, WHICH IS

  • SAUDI ARABIA, THE ORANGE LINE

  • WHICH IS A ROCK -- IN IRAQ, AND

  • THE BLUE LINE WHICH IS A RUN,

  • HAVE MADE SIGNIFICANT JUMPS UP.

  • IRAN COMING BACK TO NORMAL.

  • IRAQ IS THE BEGINNER AMONG THE

  • OPEC COUNTRIES.

  • YOU CAN SEE ALL OF THE DIFFERENT

  • MARKET SHARES THERE.

  • YOU SAW IT FOR A BRIEF MOMENT.

  • IT IS INTERESTING TO LOOK AT THE

  • BREAKUP OF THE OPEC COUNTRIES.

  • JOE: DEFINITELY.

  • I'M LOOKING AT THE CORRELATION

  • BETWEEN TWO E.T.F. AND I THINK

  • IT SAYS A LOT ABOUT WHAT IS

  • GOING ON IN THE MARKET NOW.

  • THE CORRELATION BETWEEN THE SB

  • TLT.D

  • .HIS IS A 90-DAY CORRELATION

  • THEY ARE THE MOST POSITIVELY

  • CORRELATED IN FIVE YEARS.

  • WHEN EVERYTHING IS CORRELATED

  • TOGETHER LIKE THIS, IT HAS LOTS

  • OF IMPLICATIONS FOR THE MARKET.

  • IT MAKES IT HARD TO DIVERSIFY

  • WHEN BONDS AND STOCKS ARE DOING

  • THE SAME THING.

  • YOU GET NO DIVERSIFICATION IN

  • YOUR PORTFOLIO.

  • IT SHOWS THE IMPORTANCE OF THE

  • FED.

  • TODAY WE SAW BONDS AND STOCKS

  • RALLY AT THE SAME TIME.

  • FRIDAY WE SAW BONDS AND STOCKS

  • SELL OFF SIGNIFICANTLY AT THE

  • SAME TIME.

  • IN THEE ONLY VARIABLE

  • MARKET SEEMS TO BE THE TIMING OF

  • THE FED, YOU GET EVERYTHING ELSE

  • RALLYING OR DECLINING AT THE

  • SAME TIME.

  • WE ARE GOING TO KEEP AN EYE ON

  • THAT CORRELATION.

  • CHANDRA: BY CHART SHOWS A

  • DIVISION BETWEEN WALL STREET AND

  • MAIN STREET.

  • IT IS NOT THE FIRST TIME THIS

  • HAS HAPPENED.

  • I THOUGHT IT WAS INTERESTING

  • BECAUSE IT IS LOOKING AT

  • VOLATILITY.

  • WE HAVE THE CALMEST STOCK MARKET

  • IN FIVE DECADES.

  • THE ON THE SURFACE, WE ARE

  • SEEING A TO VIRGINS IN SENTIMENT

  • -- BEYOND THE SURFACE, WE ARE

  • SEEING A DIVERGENCE IN

  • SENTIMENT.

  • INDIVIDUALS ARE LOADING UP ON

  • PROTECTED OPTIONS AND EQUITY

  • FUNDS.

  • WE HAVE THE WHITE LINE RISING.

  • THIS AMOUNTS TO A STOCK MARKET

  • SHORT ON THE PART OF RETAIL

  • INVESTORS.

  • IF WE LOOK AT THE BLUE LINE,

  • THESE ARE THE FEATURES POSITIONS

  • -- FEATURES -- FUTURES

  • POSITIONS.

  • SMALLER INVESTORS ARE EMBRACING

  • THEM.

  • INTERESTING TO SEE THIS

  • DIVERGENCE OR SMART MONEY IS

  • GOING TOWARDS THE VIX STOCK

  • MARKET.

  • MATT: WE HAVE TO USE THE BUNNY

  • EARS WHEN WE SAY SMART MONEY.

  • CHANDRA: THEY GOT IT RIGHT THE

  • LAST TIME THIS HAPPENED IN 2015.

  • JOE: LET'S DIG INTO THE TRENDS

  • IN THE EQUITY MARKETS AS IN

  • INVESTORS SNAP OF

  • DIVIDENDS, STOCKS ARE PUSHING

  • HIGHER CURRENTLY ABOVE THE

  • 10-MONTH MOVING AVERAGE.

  • ARE STOCKS GETTING TOO

  • EXPENSIVE?

  • JOINING US NOW IS MEB FABER.

  • THANK YOU FOR JOINING US.

  • U.S. STOCKS ARE STILL VERY CLOSE

  • TO ALL-TIME HIGHS.

  • CAN THEY KEEP PUSHING HIGHER?

  • HAVE THE VALUATIONS GOTTEN TOO

  • MUCH?

  • >> THE WORLD LOOKS A LOT LIKE

  • THE WAY IT HAS BEEN THE LAST

  • SEAT OF TIMES I'VE BEEN ON THE

  • SHOW, SO GREAT TO BE BACK.

  • STILL EXPENSIVE.

  • THEY ARE THE SECOND BEST OF FOUR

  • ENVIRONMENTS TO BE IN WHICH IS

  • EXPENSIVE AND GOING UP.

  • THAT IS OK.

  • THE REST OF THE WORLD, WHEEZING

  • EQUITIES IN PARTICULAR, LOOKS

  • MUCH BETTER.

  • A LOT OF THE INVESTMENTS WE

  • TALKED ABOUT, EMERGING MARKETS

  • AND FOREIGN MARKETS IN GENERAL,

  • USUALLY THE REALLY CHEAP STUFF,

  • BRAZIL EQUITY MARKETS UP ABOUT

  • 60% THIS YEAR.

  • THE RUSSIAN MARKET UP ABOUT 25%.

  • WE THINK THAT IS A MUCH BETTER

  • PLACE TO BE THAN U.S. STOCKS.

  • JOE: I HAVE THIS CHART ON MY

  • BLOOMBERG.

  • THE EMERGING MARKETS

  • E.T.F. VERSUS THE SPY.

  • YOU CAN SEE IT UNDERPERFORMED

  • FOR YEARS BUT HAS BEEN PICKING

  • UP LATELY.

  • STILL IT HAS HARDLY RECOUPED ANY

  • OF THE RELATIVE LOSSES SINCE THE

  • PEAK IN 2010.

  • DO YOU SEE OVERALL EMERGING

  • MARKETS HAVING MUCH FURTHER TO

  • RUN RELATIVE TO U.S. EQUITIES?

  • >> THE END OF THE YEAR WAS THIS

  • PERFECT ONE SIDE WITH MANY YEARS

  • OF UNDERPERFORMANCE -- COINCIDE

  • WITH MANY YEARS OF

  • UNDERPERFORMANCE.

  • FINALLY GOT TO CHEAP VALUATIONS.

  • NOBODY WANTS THEM.

  • THAT SETS THE STAGE FOR FUTURE

  • BULL MARKETS.

  • THEY ONLY OUTPERFORM EACH OTHER

  • ABOUT HALF THE TIME.

  • THE U.S. HAS BEEN CRUSHING

  • EVERYONE ELSE SINCE THE GLOBAL

  • FINANCIAL CRISIS.

  • YOU ARE STARTING TO SEE THE

  • SHIFT RIGHT AROUND JANUARY.

  • FOREIGN MARKETS STARTED TO TAKE

  • LEADERSHIP, PARTICULARLY

  • EMERGING MARKETS.

  • SOME OF THE EUROPEAN COUNTRIES

  • ARE STILL LAGGARDS.

  • ITALY, GREECE, SPAIN.

  • WE THINK MANY MORE YEARS OF

  • OUTPERFORMANCE, DOUBLE-DIGIT

  • RETURNS IN EMERGING MARKETS IN

  • PARTICULAR AND LOW SIGNAL DIGITS

  • FOR THE U.S.

  • MATT: WE DO HAVE BREAKING NEWS

  • COMING ACROSS THE TERMINAL,

  • WHICH IS KIND OF A BIG DEAL.

  • IT SAID IT IS NO LONGER PURSUING

  • A COMBINATION WITH HERSHEY.

  • IT SAYS IT IS DISAPPOINTED WITH

  • THE OUTCOME BUT CITING RECENT

  • HOLDER DEVELOPMENTS AT HERSHEY.

  • IT SAYS THERE IS NO ACTIONABLE

  • PATH FORWARD.

  • IT IS GOING TO CONTINUE

  • EXECUTIVE PLANS TO BOOST

  • SHAREHOLDER VALUE, PROBABLY A

  • GOOD IDEA SINCE THAT IS THE MAIN

  • JOB.

  • THIS SAYS THEY ARE NO LONGER

  • PURSUING A COMBINATION WITH

  • HERSHEY.

  • VERY INTERESTING NEWS OUT OF

  • MONDELEZ.

  • HOURS, WE SAWFTER

  • A BIG SPIKE AND A RECOVERY.

  • NOT A LOT OF MOVEMENT IN SHARES.

  • JOE: PLUNGING OVER 8% RIGHT NOW

  • ON THE NEWS.

  • OBVIOUSLY, THE LOSS OF A

  • POTENTIAL ACQUIRER HITTING THEIR

  • SHARES.

  • MATT: EXACTLY WHAT YOU WOULD

  • EXPECT.

  • OFRE ARE NOT A TON

  • SHARES TRADED AFTER HOURS IN

  • HERSHEY.

  • YOU CAN SEE THE CONTRACTS AND

  • HOW MANY ARE TRADED RIGHT NOW.

  • VERY INTERESTING NEWS.

  • WE WILL CONTINUE TO MONITOR IT.

  • I WILL ASK YOU ABOUT THE U.S.

  • CONSUMER.

  • WE ARE TALKING ABOUT CONSUMER

  • STOCKS.

  • UT RIGHT HERE.R

  • WHAT DO YOU THINK ABOUT THE FACT

  • THE U.S. CONSUMER SEEMS TO BE

  • , KIND OFNNING ON EMPTY

  • OUT OF GAS ALMOST.

  • IN LOS ANGELES, HOUSING

  • PRICES LOOK LIKE 2008 NEVER

  • HAPPENED.

  • THIS IS THE THING YOU START TO

  • SEE IN THE BULL MARKET IN YEAR

  • SEVEN OR EIGHT WHERE RETURNS ARE

  • GETTING TO THE POINT WHERE THE

  • SENTIMENT IS STARTING TO GET

  • HIGH AGAIN.

  • PEOPLE IN GENERAL, CONSUMER

  • DISCRETIONARY STOCKS FOR

  • EXAMPLE REALLY

  • EXPENSIVE.

  • A LOT OF THE CONSUMER FOCUSED

  • BECAUSE OF THE SEARCH FOR YIELD,

  • PEOPLE PUSHING THE YIELDS DOWN.

  • A LOT OF THESE CONSUMER STOCKS

  • IS A TERRIBLE PLACE TO BE.

  • WANT TO GET AWAY FROM THOSE AND

  • RUN AS QUICK AS POSSIBLE.

  • CHANDRA: I SHOWED A CHART

  • GENCEER ON THE DIVERSE

  • WITH INSTITUTIONAL INVESTORS

  • BAILING OUT WHILE SMALLER

  • INVESTORS HAVE BEEN EMBRACING

  • THEM.

  • THEY HAVE BEEN SHORTING THE

  • STOCK MARKET.

  • WHO IS RIGHT?

  • INSTITUTIONAL

  • INVESTORS OFTEN BEHAVE AS POORLY

  • AS INDIVIDUALS.

  • THEY USE A LOT MORE RIGOROUS

  • TERMS FOR IT, BUT THEY MAKE A

  • LOT OF THE SAME MISTAKES.

  • BUILDING A GLOBAL PORTFOLIO,

  • THERE ARE A LOT OF THINGS YOU

  • WANT TO INCLUDE.

  • YOU WANT TO GET RID OF HOME

  • COUNTRY BIAS.

  • THAT HAPPENS NOT JUST IN THE

  • U.S. BUT IN EVERY COUNTRY AROUND

  • THE WORLD.

  • EVERY COUNTRY INVESTOR PUTS TOO

  • MUCH IN THEIR OWN STOCKS.

  • BUILDING A PORTFOLIO, YOU HAVE

  • TO HAVE A GLOBAL APPROACH.

  • NOT JUST WITH EQUITIES BUT BONDS

  • AS WELL.

  • WITH VOLATILITY, YOU HAVE REAL

  • ASSETS.

  • YOU NEED EXPOSURE TO INFLATION

  • IF AND WHEN IT HAPPENS AGAIN.

  • WE HAVE NOT SEEN IT FOREVER IN

  • THE U.S.

  • WE HAVE SEEN IT IN COUNTRIES

  • AROUND THE WORLD.

  • WHEN YOU HAVE THAT GLOBAL

  • PORTFOLIO, YOU CAN DO OTHER

  • THINGS.

  • YOU CAN TILT TOWARD VALUE AND

  • MOMENTUM.

  • YOU CAN ADD DIVERSIFIED IS AT A

  • LONG VOLATILITY PRODUCT WE THINK

  • IS ONE OF THE BEST THAT VERY FEW

  • GO TO.

  • JOE: YOU'RE GOING TO STICK

  • AROUND.

  • WE WILL TALK ABOUT COLLEGE

  • ENDOWMENTS AND WHAT INVESTORS

  • CAN LEARN BY MIMICKING THE

  • STRATEGIES OF HARVARD, YALE, AND

  • OTHER TOP SCHOOLS LIKE STANFORD.

  • MATT: PROBABLY YELL MORE THAN

  • HARVARD -- PROBABLY YALE MORE

  • THAN HARVARD.

  • TO RECAP THE DEVELOPING STORY.

  • MONDELEZ SAYS IT IS NO LONGER

  • PURSUING A TAKEOVER OF HERSHEY.

  • THE C.E.O. IN A STATEMENT SAYS

  • FOLLOWING DISCUSSIONS AND TAKING

  • INTO ACCOUNT RECENT SHAREHOLDER

  • DEVELOPMENTS AT HERSHEY, WE

  • DETERMINED THERE IS NO

  • ACTIONABLE PATH FORWARD.

  • AFTER HOURS SHARES IN HERSHEY

  • FALLING 10%.

  • THIS IS BLOOMBERG.

  • MARK: IT IS TIME FOR YOUR FIRST

  • WORD NEWS.

  • DONALD TRUMP IS SET TO DELIVER

  • HIS IMMIGRATION POLICY ON

  • WEDNESDAY.

  • HE PLANS TO FOCUS ON DEPORTING

  • CRIMINALS.

  • THAT IS SIMILAR TO THE STRATEGY

  • OF THE OBAMA ADMINISTRATION.

  • THE PRESIDENT HAS OFTEN BEEN

  • REFERRED TO BY IMMIGRATION

  • GROUPS AS THE TO PORTER -- DE

  • PORTER IN CHIEF.

  • HASOBAMA ADMINISTRATION

  • REMOVED MORE THAN 2.5 MILLION

  • PEOPLE THROUGH IMMIGRATION

  • ORDERS.

  • HILLARY CLINTON HAS AN EDGE IN

  • MICHIGAN AND PENNSYLVANIA BUT

  • THEY ARE DEADLOCKED IN OHIO.

  • CLINTON LEADS TRUMP 45-40% IN

  • MICHIGAN AND 46-43% IN

  • PENNSYLVANIA.

  • THEY ARE TIED AT 43% IN OHIO.

  • THE LIBERTARIAN PARTY CANDIDATE

  • HAS 10% IN OHIO AND 7% IN

  • PENNSYLVANIA AND MICHIGAN.

  • ORLANDO'S MAJOR THEME PARKS ARE

  • OFFERING FREE BUG REPELLENT AS

  • CONCERNS ABOUT THE ZIKA MELT IN

  • FLORIDA.

  • WALT DISNEY WORLD, UNIVERSAL

  • RESORT, AND SEAWORLD ORLANDO

  • BEGAN OFFERING THE MOSQUITO

  • SPRAY AND LOTION FREE OF CHARGE.

  • MOSQUITO TRANSMITTED

  • CASE HAS BEEN FOUND IN CENTRAL

  • FLORIDA.

  • THE JUSTICE DEPARTMENT WILL

  • DECIDE BY NEXT MONTH IF IT WILL

  • SEEK TO PROSECUTE THE FORMER

  • VIRGINIA GOVERNOR FOR

  • CORRUPTION.

  • IN JUNE, THE SUPREME COURT IN A

  • UNANIMOUS DECISION TOSSED HIS

  • CONVICTION.

  • THE RULING LEFT OPEN THE

  • POSSIBILITY FOR HIM TO BE

  • RETRIED.

  • GENE WILDER IS DEAD.

  • HIS NEPHEW TOLD "VARIETY"

  • MAGAZINE THE ACTOR AND WRITER

  • DIED EARLIER THIS MONTH IN

  • STAMFORD, CONNECTICUT, FROM

  • COMPLICATIONS FROM ALZHEIMER'S.

  • " THERRED IN

  • PRODUCERS" AND "STIR CRAZY."

  • HE WAS NOMINATED TWICE FOR AN

  • OSCAR.

  • GENE WILDER WAS 83 YEARS OLD.

  • GLOBAL NEWS 24 HOURS A DAY

  • POWERED BY MORE THAN 2600

  • JOURNALISTS AND ANALYSTS IN MORE

  • THAN 120 COUNTRIES.

  • I AM MARK CRUMPTON.

  • THIS IS BLOOMBERG.

  • MATT: WE HAVE BREAKING NEWS FROM

  • AMERICAN AIRLINES.

  • IT'S PRESIDENT WILL LEAVE

  • EFFECTIVE IMMEDIATELY.

  • AMERICAN AIR CONCLUDED THEY

  • WOULD NOT BE ABLE TO RETAIN

  • THEIR EXECUTIVE TEAM SO THEY

  • KIRBYA NEW PRESIDENT AND

  • WILL BE LEAVING EFFECTIVE

  • IMMEDIATELY.

  • JOE: "WHAT'D YOU MISS?"

  • MORE COLLEGES AND UNIVERSITIES

  • ARE OUTSOURCING MANAGEMENT OF

  • ENDOWMENTS AS THEY TRY TO LOWER

  • EXPENSES AND INCREASE RETURNS.

  • BACK WITH US IS MEB FABER.

  • "THEROTE AN ENTIRE BOOK,

  • IVY PORTFOLIO."

  • WHAT DO YOU MAKE OF THIS WALL

  • STREET ATTEMPTING TO GET IN ON

  • THE ENDOWMENT BUSINESS,

  • COMPANIES TRYING TO OUTSOURCE

  • THEIR ENDOWMENTS TO WALL STREET?

  • WHAT DO YOU MAKE OF THIS TREND

  • AND WHAT ARE THE TOP ENDOWMENTS

  • YOU HAVE FOLLOWED FOR SO LONG

  • DOING NOW?

  • >> TYPICALLY, WE START WITH

  • HARVARD AND YEAH.

  • ENDOWMENTS,ARGEST

  • THERE ARE THINGS THEY DO GREAT

  • AND THINGS THEY DON'T DO GREAT.

  • THEY DO A TRUE GLOBAL

  • PERSPECTIVE ON ALLOCATIONS.

  • NOT JUST U.S. ASSETS BUT FOREIGN

  • ASSETS AS WELL.

  • THEY HAVE A HEAVY ALLOCATION TO

  • EQUITY LIKE ASSETS.

  • THEY HAVE A CHUNK IN REAL ASSETS

  • LIKE COMMODITIES.

  • THEY ALSO TARGET ACTIVE

  • MANAGEMENT WHEN APPROPRIATE SO

  • IT GIVES YOU A DIVERSIFIED

  • PORTFOLIO.

  • THE THINGS THEY DON'T DO WELL IS

  • IT IS TYPICALLY AN AGGRESSIVE

  • PORTFOLIO FOR INDIVIDUALS AND

  • INSTITUTIONS.

  • THOSE ENDOWMENTS PROBABLY LOST

  • 50% IF NOT MORE IN THE 2000 A

  • PAIR MARKET.

  • -- 2008 BEAR MARKET.

  • THAT IS HOW MUCH THEY WOULD HAVE

  • DECLINED.

  • IN MY OPINION, THEY DON'T OFFER

  • TO TRENDS.SURE

  • MANY INVESTORS CAN GET ENDOWMENT

  • EXPOSURE NOW.

  • IN E.T.F. THAT GIVES

  • YOU ACCESS TO OVER 30,000

  • SECURITIES AROUND THE WORLD.

  • ANNOUNCED THAT WE NOW

  • MANAGEMENT FORT

  • INDIVIDUAL ACCOUNTS FOR A 0%

  • MANAGEMENT FEE ACROSS 13 IF YES

  • THAT LOOKS A LOT

  • LIKE THIS PORTFOLIO.

  • YOU CAN TURN THE DIAL UP OR DOWN

  • FOR PEOPLE THAT CANNOT HANDLE

  • THE LARGE ENDOWMENTS AND

  • LIQUIDITY ISSUES OF A

  • TRADITIONAL ENDOWMENT.

  • I WANTED TO POINT OUT WE

  • WHICH GREAT FUNCTION

  • ALLOWS YOU TO GET DEEP

  • INFORMATION ABOUT COLLEGE

  • ENDOWMENTS.

  • OBVIOUSLY, HARVARD IS THE

  • BIGGEST.

  • THE ONE-YOUR RETURN IS POOR AT

  • 5.8%.

  • OVER 10 YEARS, THEY ARE UP

  • 7.86%.

  • YALE STOMPS THEM OVER THE LAST

  • YEAR AND 10 YEARS.

  • WHEN I THINK ABOUT COLLEGE

  • ENDOWMENTS, I THINK ABOUT

  • ALTERNATIVE INVESTMENTS DID THEY

  • KIND OF PIONEERED DUMPING INTO

  • ALTERNATIVE INVESTMENTS.

  • DO YOU THINK THEY DID THAT WELL

  • AND HAVE NOW GONE OFF THE RAILS?

  • ALTERNATIVESOOK AT

  • AND SAY LET'S GO BACK 60 YEARS

  • AGO WHEN HARVARD WAS DOING

  • TIMBER OR PEOPLE WERE EARLY TO

  • ASSET CLASSES, ONE OF THE BEST

  • THING YALE DID WAS IT STARTED

  • ALLOCATING TWO SMALL-CAP

  • MANAGERS 30 YEARS AGO WHEN THAT

  • WAS LESS EFFICIENT.

  • THERE ARE 10,000 HEDGE FUNDS

  • TODAY SO THAT GAME IS HARDER.

  • YOU ARE SEEING MOVE INTO ASSET

  • CLASSES THAT ARE NOT TRADITIONAL

  • THAT INDIVIDUAL INVESTORS NEED

  • EXPOSURE TO.

  • HARVARD HAS BEEN STRUGGLING.

  • I THINK IT IS GOING TO BE

  • INCREDIBLY DIFFICULT FOR MANY OF

  • THESE ENDOWMENTS TO OUTPERFORM A

  • BASIC 0% FEE BENCHMARK LIKE OURS

  • GOING FORWARD.

  • THAT IS GOING TO BE TOUGH TO DO.

  • JOE: MEB FABER, THANK YOU VERY

  • MUCH AS ALWAYS FOR JOINING US.

  • CHANDRA: YOU ARE WATCHING

  • "WHAT'D YOU MISS?"

  • A CONVERSATION YOU DON'T WANT TO

  • MISS TOMORROW WITH STANLEY

  • FISCHER, VICE CHAIRMAN OF THE

  • FEDERAL RESERVE.

  • HE SITS DOWN THE TOM KEENE AT

  • 6:30 A.M. EASTERN ON TELEVISION

  • AND RADIO.

  • THIS IS BLOOMBERG.

  • CHANDRA: YOU ARE WATCHING

  • "WHAT'D YOU MISS?"

  • TIME FOR ANOTHER DEEP DIVE INTO

  • THE BLOOMBERG.

  • LET'S START WITH A CHART ON THE

  • CARRY TRADE.

  • THIS IS WHEN INVESTORS BORROW IN

  • GROUPS OF 10 CURRENCIES WITH

  • GROUP INTEREST RATES AND USE IT

  • TO BUY HIGHER YIELDS.

  • THIS IS ON PACE FOR ITS BIGGEST

  • ANNUAL GAIN SINCE 2012.

  • THIS CHART SHOWS THE DEUTSCHE

  • BANK CARRY TRADE INDEX.

  • I THOUGHT THIS WAS AN

  • INTERESTING WANT TO SHOW GIVEN

  • THE ENVIRONMENT OF LOW YIELDS WE

  • HAVE AND THE CONSTANT HUNT FOR

  • YIELD WE KEEP TALKING ABOUT.

  • THE CARRY TRADE IS ONE OF THE

  • STRATEGIES.

  • ANOTHER ONE THAT HAS BEEN

  • RALLYING IS THE EVALUATION AND

  • MOMENTUM TRADES.

  • THIS CARRY TRADE IN PARTICULAR

  • INTERESTING BECAUSE YOU HAVE

  • SOME CURRENCIES RALLYING EVEN

  • WHEN THEIR CENTRAL BANKS EASE.

  • JOE: ANOTHER STRATEGY THAT HAS

  • DONE WELL LATELY, RISK PARODY

  • FUNDS WHICH GO ALONG EQUITIES

  • AND TREASURIES AT THE SAME TIME.

  • THAT IS THE REDLINE GOING BACK

  • TO THE BEGINNING OF THE YEAR,

  • HAVING A GOOD YEAR.

  • FRIDAYTO HIGHLIGHT

  • BECAUSE YOU SEE THE DECLINE.

  • THAT WAS ONE OF THE WORST DAYS

  • ALL YEAR FOR THE STRATEGY AFTER

  • THE COMMENTS AT JACKSON HOLE.

  • IT SHOWS THE SUSCEPTIBILITY OF

  • THE STRATEGY TO PERCEPTIONS OF

  • TIGHTENING.

  • IF THE STRATEGY DOES REALLY WELL

  • AND PEOPLE THINK TIGHTENING IS A

  • LONG WAY OFF, BUT ON DAYS WHEN

  • PEOPLE HAVE TO RATCHET UP

  • EXPECTATIONS OF A FED HIKE, YOU

  • SEE SELLOFF ACROSS ASSET CLASSES

  • AND THE STRATEGY DOES NOT DO AS

  • WELL.

  • MATT: VERY INTERESTING CHART.

  • VERY COOL.

  • IAN SUSPENDED BRAZIL

  • PRESIDENT TELLS THE SENATE

  • REMOVING HER FROM OFFICE WOULD

  • BE A DEATH SENTENCE.

  • WELL HER EMOTIONAL APPEAL TO

  • LAWMAKERS SWAY ANY VOTES?

  • THIS IS BLOOMBERG.

  • MARK: I AM MARK CRUMPTON.

  • DONALD TRUMP IS PRAISING THE

  • DECISION OF HILLARY CLINTON'S

  • TOP AIDE TO SEPARATE FROM HER

  • HUSBAND, FORMER NEW YORK

  • CONGRESSMAN ANTHONY WEINER.

  • TRUMP IS BLASTING CLINTON IN THE

  • COULDS CLAIMING WEINER

  • HAVE ENDANGERED NATIONAL

  • SECURITY IN ALLOWING HIM CLOSE

  • PROXIMITY TO HIGHLY CLASSIFIED

  • INFORMATION.

  • WIENERRED NO EVIDENCE

  • HAD ACCESS TO SUCH MATERIAL.

  • SANDY HOOK REOPENED AFTER THE

  • SHOOTING RAMPAGE THAT KILLED 20

  • CHILDREN AND SIX EDUCATORS.

  • STUDENTS RETURNED TO A $50

  • MILLION REPLACEMENT OF THE

  • SCHOOL ON THE SAME PROPERTY IN

  • NEWTOWN, CONNECTICUT.

  • NORTH KOREA CALLS THE U.N.

  • SECURITY COUNCIL STATEMENT

  • STRONGLY CONDEMNING THE LATEST

  • BALLISTIC MISSILES A HOSTILE ACT

  • PERPETRATED BY THE U.S.

  • THE FOREIGN MINISTRY ACCUSED THE

  • U.S. OF INSTIGATING THE

  • STATEMENT TO DETER THE COUNTRY'S

  • LEGITIMATE RIGHT TO

  • SELF-DEFENSE.

  • MORE THAN 35,000 PEOPLE DIED IN

  • U.S. TRAFFIC CRASHES LAST YEAR.

  • THE MORE THAN 7% SPIKE WAS THE

  • LARGEST SINGLE YEAR INCREASE IN

  • 20 YEARS ACCORDING TO THE

  • NATIONAL HIGHWAY TRAFFIC SAFETY

  • ADMINISTRATION.

  • INCREASE ENDS A FIVE DECADE

  • TREND OF DECLINES IN TRAFFIC

  • FATALITIES.

  • OFFICIALS ATTRIBUTE THE RISE TO

  • MORE DRIVERS ON THE ROAD.

  • GLOBAL NEWS 24 HOURS A DAY

  • POWERED BY MORE THAN 2600

  • JOURNALISTS AND ANALYSTS IN OVER

  • 120 COUNTRIES.

  • I AM MARK CRUMPTON.

  • THIS IS BLOOMBERG.

  • >> ONE STOCK MOVING IN LATE

  • TRADING IS HERSHEY AFTER

  • MONDELEZ SAYS IT IS NO LONGER

  • PURSUING ITS COMBINATION WITH

  • HERSHEY.

  • YOU CAN SEE THE STOCK DOWN 11.5%

  • AFTER HOURS.

  • MONDELEZ SAYS IT IS DISAPPOINTED

  • WITH THE OUTCOME AND THERE IS NO

  • ACTIONABLE PATH FORWARD.

  • HAMMOND -- ED AT

  • HAMMOND WHO HAS BEEN TRACKING

  • THE DEAL.

  • WHY DID IT FALL APART?

  • >> IT NEVER REALLY GOT GOING.

  • WHEN IT BECAME PUBLIC, HERSHEY

  • WAS IMMEDIATELY REJECTING OF THE

  • OFFER.

  • THERE HAS NOT BEEN MUCH

  • ENGAGEMENT OVER THE SUMMER.

  • BEFORE THIS WENT PUBLIC COUPLE

  • OF MONTHS AGO, THEY HAD BEEN

  • TALKING BEHIND THE SCENES.

  • BELIEVED THEYELEZ

  • WERE POTENTIALLY OPEN TO A DEAL.

  • MATT: NOW THEY DON'T BELIEVE

  • THAT.

  • I WAS LOOKING BACK TO SEE WHAT

  • KIND OF SHAREHOLDER ACTIVITY

  • COULD HAVE LED TO THIS CHANGE.

  • I SAW THAT HERSHEY IS CONTROLLED

  • BY THIS TRUST THAT WAS UNDER

  • FIRE FOR LAVISH SPENDING.

  • THERE WAS AN INVESTIGATION.

  • THEY PROMISED TO DO BETTER.

  • STORY WITH

  • THE OWNERS OF HERSHEY?

  • RIP GENE WILDER INDEED.

  • FITTING THIS NEWS WOULD COME ON

  • THE SAME DAY.

  • HERSHEY HAS A NORMAL CORPORATE

  • BOARD AS EVERY COMPANY DOES.

  • BUT IT ALSO HAS A TRUST CHARGED

  • WITH LOOKING AFTER THE INTERESTS

  • OF HERSHEY THE TOWN.

  • THEY GET THE ULTIMATE CALL ON

  • WHETHER OR NOT THIS COMPANY

  • GETS.

  • SOLD EVEN IF THE BOARD APPROVED

  • THE DEAL, IT IS UP TO THE

  • TO DECIDE IF THE BOARD

  • MADE THE RIGHT DECISION.

  • IT NEVER MADE IT THAT FAR.

  • MATT: MONDELEZ WOULD HAVE TO

  • MAKE IT VERY APPEALING TO THE

  • PEOPLE TO WHOM THE TRUST REPORTS

  • FOR THE TRUST TO THINK ABOUT IT

  • BECAUSE THEY REPRESENT THE TOWN

  • IN PENNSYLVANIA.

  • AN AMORPHOUS CONCEPT ON

  • WHICH INTEREST THEY ARE SERVING.

  • THERE HAS BEEN A LOT OF

  • CRITICISM BECAUSE THE TRUST IS

  • OFTEN UNDER FIRE FOR APPARENTLY

  • SERVING THEIR OWN SELF INTEREST,

  • SPENDING LOTS OF MONEY ON THEIR

  • OWN ACTIVITIES, NOT NECESSARILY

  • BEST FOR THE BIGGER CONCEPT OF

  • WHAT IS IN THE BEST INTEREST OF

  • THE TOWN OF HERSHEY.

  • >> WHAT HAPPENS NEXT FOUR

  • MONDELEZ?

  • WILL THEY LOOK AT OTHER

  • ACQUISITIONS?

  • >> I THINK THEY WILL LOOK AT

  • OTHER ACQUISITIONS.

  • THEY ARE ALSO SEEN AS A TARGET

  • SO IT IS POSSIBLE SOMEONE BIGGER

  • AND BETTER WILL GO AFTER THEM.

  • THIS DEAL I'M SURE WAS MOTIVATED

  • FOR STRATEGIC REASONS.

  • THERE HAS BEEN WHISPERING SINCE

  • IT BECAME PUBLIC THAT THEY

  • POTENTIALLY WERE DOING A

  • DEFENSIVE MOVE.

  • >> ED HAMMOND, THANK YOU VERY

  • MUCH INDEED.

  • MATT: LET'S GET A QUICK RECAP OF

  • TODAY'S MARKET ACTION.

  • STOCKS SHOWED GAINS TODAY.

  • THE BIGGEST GAIN FOR THE S&P 500

  • SINCE AUGUST FOR.

  • JOE, THE BIGGEST GAIN IN A

  • MONTH.

  • .5%.

  • JOE: THAT IS A REMARKABLE FACT.

  • I THINK WE ARE ON 35 STRAIGHT

  • DAYS.

  • IS 36. THINK IT

  • I HAVE A CHART ABIGAIL DOOLITTLE

  • HAS BEEN SHOWN TODAY.

  • IT SHOWS YOU THIS RANGE.

  • A 1% ORHAS NOT MOVED TO

  • GREATER RANGE IN 36 DAYS.

  • THE RANGE IS BROADENING SO WE

  • ARE GETTING THERE.

  • BUT IT HAS NOT MOVED OUT.

  • DO YOU WANT TO SHOW THE CHART I

  • HAVE?

  • JOE: THERE IT IS.

  • THAT IS A GORGEOUS CHART.

  • "WHAT'D YOU MISS?"

  • THE IMPEACHMENT TRIAL OF

  • BRAZIL'S BENDED PRESIDENT IS

  • ENTERING -- SUSPENDED PRESIDENT

  • IS ENTERING ITS FINAL PHASES.

  • COMMIT ANYE DID NOT

  • CRIME CALLING HER IMPEACHMENT "A

  • POLITICAL DEATH PENALTY."

  • TWICE, I CAME CLOSE TO DEATH.

  • ONCE WHEN FOR DAYS I WAS

  • THAT MADE ME DOUBT

  • HUMANITY AND LIFE ITSELF.

  • WHEN A SERIOUS ILLNESS ALMOST

  • MADE MY LIFE SHORTER.

  • TODAY I AM CONCERNED ABOUT THE

  • DEATH OF DEMOCRACY.

  • IN JULIA LEITEG

  • FOR THE LATEST.

  • DRAMATIC STUFF.

  • DOES SHE HAVE ANY POLITICAL LIFE

  • AT ALL OR IS THIS A DONE DEAL?

  • >> THIS IS SEEN AS A DONE DEAL.

  • MOST OF THE NEWSPAPER POLLS HAVE

  • AROUND 52 SENATORS VOTING FOR

  • IMPEACHMENT AND 10 UNDECIDED.

  • THEY ONLY NEED 54 TO IMPEACH.

  • THIS IS SEEN BY HER ALLIES AS A

  • DONE DEAL.

  • SHE'S GOING TO BE IMPEACHED THIS

  • WEEK.

  • JOE: IT DOES NOT HAVE TO BE A

  • DEATH SENTENCE.

  • ONE OF THE SENATORS WHO WILL BE

  • VOTING HIMSELF WAS A BRAZILIAN

  • PRESIDENT WHO WAS IMPEACHED.

  • HER CAREER COULD GO ON.

  • >> THAT IS RIGHT.

  • 1992 AND WASHED IN

  • OUT OF THE POLITICAL SPHERE FOR

  • .IGHT YEARS

  • HE HAS BEEN BACK.

  • HE IS A SENATOR.

  • HE SPOKE ON THE FIRST

  • IMPEACHMENT VOTE AND IS VOTING

  • THIS WEEK AS WELL.

  • GAINSHAVE SEEN STUNNING

  • IN THE RUN-UP TO THIS.

  • IS THIS OPTIMISM IN THE STOCK

  • MARKET BECAUSE OF THE

  • POSSIBILITY OF HER GOING OR IS

  • ACTUAL FUTURE BETS

  • ON BRAZIL'S ECONOMY?

  • >> WE HEAR BOTH THINGS.

  • WE ALSO HEAR COMMODITIES RALLY

  • AND LOW INTEREST RATES ABROAD.

  • THERE IS A LARGE PORTION OF

  • INVESTORS THAT STILL SAY

  • WHATEVER COMES AFTER WILL BE

  • BETTER.

  • THEY WILL HAVE TROUBLE PASSING

  • REFORMS EVEN THOUGH THERE IS A

  • LOT OF OPTIMISM HE WILL MANAGE

  • TO GET SOME DONE.

  • INVESTORS KNOW IT IS DIFFICULT.

  • BRAZIL HAS A DIFFICULT POLITICAL

  • SYSTEM.

  • WE HAVE OVER 30 PARTIES SO THERE

  • IS A LOT OF NEGOTIATING THAT

  • NEEDS TO GO ON.

  • JOE: I WANT TO EXPAND ON THAT

  • QUESTION FURTHER.

  • AND ISG SHE IS IMPEACHED

  • OFFICIALLY REMOVED FROM OFFICE,

  • DOES THAT AID IN THE PROCESS OF

  • POLITICAL REFORM AT ALL?

  • IS THAT ON A TOTALLY SEPARATE

  • TRACK WITH ITS OWN DYNAMICS?

  • --THE HOPE IS IT WILL MAKE

  • GIVE HIM A MORE LEGITIMATE

  • GOVERNMENT AND MORE SWAY IN

  • NEGOTIATIONS.

  • POLITICAL REFORM PROPOSALS HAVE

  • BEEN PUT ASIDE FOR THE TIME

  • BEING.

  • WE ARE TALKING MOSTLY ABOUT

  • PENSION REFORM, SOCIAL SECURITY

  • REFORM, TAX REFORM.

  • SOME TALK ABOUT LABOR LAW

  • REFORM.

  • POLITICAL REFORM IS LIKELY TO BE

  • EVEN MORE COMPLICATED AND IS NOT

  • ON THE TABLE RIGHT NOW.

  • MATT: WHEN IS THE LAST TIME WE

  • ARE GOING TO HEAR ABOUT THIS?

  • THE LAST TIME YOU'RE GOING TO

  • HAVE TO REPORT ON HER FOR AT

  • LEAST EIGHT YEARS?

  • >> THAT IS HARD TO KNOW.

  • THIS WEEK, WE WILL BE

  • REPORTING ON HER A LOT.

  • SHE COULD APPEAL.

  • THIS COULD GO ON FOR A WHILE.

  • WE WILL SEE WHAT SHE DECIDES TO

  • DO.

  • MATT: MAYBE A BIT OF A

  • NEVER-ENDING STORY.

  • >> BUT ONE THAT WE LOVE

  • FOLLOWING.

  • THANK YOU SO MUCH.

  • MATT: STILL AHEAD IN OUR OWN

  • POLITICAL SAGA, HILLARY CLINTON

  • IS WORRYING SOME DEMOCRATS BY

  • TRYING TO SEPARATE DONALD TRUMP

  • FROM HIS PARTY.

  • ARE THEY TRULY TWO DIFFERENT

  • ENTITIES?

  • WE GOT TO WASHINGTON NEXT.

  • THIS IS BLOOMBERG.

  • JOE: "WHAT'D YOU MISS?"

  • HILLARY CLINTON IS TRYING TO GET

  • REPUBLICAN VOTERS TO DITCH

  • DONALD TRUMP ARE LINKING HIM TO

  • -- BY LINKING HIM TO OTHERS

  • OUTSIDE THE MAINSTREAM OF THE

  • REPUBLICAN PARTY.

  • OURMORE, LET'S BRING IN

  • GUEST.

  • IS SHE SAYING THIS IS NOT A

  • TYPICAL REPUBLICAN AND SOMETHING

  • MUCH WORSE?

  • >> SHE IS TRYING TO WIN OVER A

  • LOT OF INDEPENDENTS AND

  • REPUBLICANS WHO NOT SURE ABOUT

  • DONALD TRUMP BY BASICALLY

  • PAINTING HIM AS SOMEONE WAY

  • OUTSIDE THE MAINSTREAM.

  • NOT A CONSERVATIVE.

  • NOT A REPUBLICAN.

  • GIVING HIM WIGGLE ROOM TO SAY

  • THEY'RE NOT GOING TO VOTE FOR

  • THE NOMINEE BECAUSE IN HER VIEW,

  • HE IS NOT A MAINSTREAM

  • REPUBLICAN.

  • IT IS A WAY TO REACH OUT TO

  • CONSTITUENCIES THAT NORMALLY

  • WOULD NOT CONSIDER VOTING FOR

  • HER.

  • BUT BECAUSE HE IS SUCH AN

  • INCENDIARY CANDIDATE, SOME ARE

  • CONSIDERING NOT VOTING FOR HIM.

  • JOE: ONE OF THE CRITICISMS OF

  • THIS STRATEGY IS YOU GUYS HAVE

  • BEEN ACCUSING US OF BEING RACIST

  • AND SEXIST AND BIGOTS FOR YEARS.

  • SO WHY SHOULD WE LISTEN TO YOU

  • WHEN YOU SAY THIS ABOUT DONALD

  • TRUMP?

  • HAVE THE DEMOCRATS CREATED A

  • PROBLEM?

  • THERE WAS A SPECIFIC ATTACK ON

  • POP KRUGMAN -- PAUL KRUGMAN.

  • IS THE BAR HIGH FOR HILLARY

  • CLINTON TO SAY REALLY, THIS IS

  • ON A LEVEL WE HAVE NOT SEEN

  • BEFORE FROM PREVIOUS CANDIDATES?

  • >> THAT IS RIGHT.

  • NOT ONLY IS THE BAR HIGH, THE

  • DEMOCRATS ARE RUNNING FOR SEATS

  • IN CONGRESS AND ARE NOT

  • COMPLETELY ON BOARD WITH HILLARY

  • CLINTON'S STRATEGY BECAUSE THEY

  • WANT TO TIE THEIR OPPONENTS TO

  • DONALD TRUMP AND SAY HE IS VERY

  • MUCH A FIREBRAND THAT REPRESENTS

  • THE REPUBLICAN PARTY.

  • THEY WANT TO LINK THESE PEOPLE

  • IN CONGRESS WHO ARE STRUGGLING

  • IN TIGHT RACES, THEY WANT TO

  • MAKE IT VERY CLEAR THAT ALL

  • TRUMP REPRESENTS THE REPUBLICAN

  • PARTY.

  • A THORNY STRATEGY FOR

  • HILLARY CLINTON BUT SOMETHING

  • SHE THINKS SHE NEEDS TO DO TO

  • WIN THE PRESIDENCY.

  • >> SPEAKING OF TRUMP, WE HEARD

  • MORE FROM HIM ABOUT HIS

  • IMMIGRATION VIEWS TODAY.

  • TELL US MORE ABOUT THAT.

  • IT WAS JUST KIND OF ONE

  • MEANINGFUL CHANGE AND IT RELATED

  • TO THE MASS DEPORTATION ASPECT.

  • EXPECTING TO HEAR MUCH

  • MORE FROM DONALD TRUMP ON

  • WEDNESDAY WHERE HE SAYS HE WILL

  • LAY OUT A MAJOR SPEECH ABOUT

  • ILLEGAL IMMIGRATION.

  • FOR THE LAST FEW DAYS, WE HAVE

  • BEEN SEEING A LOT OF

  • BACK-AND-FORTH ABOUT DONALD

  • TRUMP'S FINAL PLAN.

  • THERE IS A LOT OF CONFUSION

  • ABOUT WHAT HE WANTS TO DO WITH

  • THE 11 MILLION OR SO

  • UNDOCUMENTED IMMIGRANTS IN THIS

  • COUNTRY.

  • HE HAS NOT BEEN VERY SPECIFIC

  • ABOUT THAT.

  • THAT IS SOMETHING THAT IS

  • BUILDING UP AS HE GETS CLOSER TO

  • THIS WEDNESDAY SPEECH.

  • HE DOES SAY HE WANTS TO DEPORT

  • MORE AND MORE PEOPLE WHO ARE

  • HERE ILLEGALLY, SPECIFICALLY

  • FOCUSING ON PEOPLE WHO HAVE

  • COMMITTED CRIMES SINCE THEY HAVE

  • GOTTEN HERE.

  • WE ARE STILL NOT SURE WHAT HE

  • WAS TO DO WITH THE VAST MAJORITY

  • OF PEOPLE HERE, MANY OF WHOM WHO

  • HAVE BEEN HERE FOR YEARS AND

  • YEARS.

  • MATT: GETTING BACK TO THE

  • CONGRESSIONAL RACES, I WONDER IF

  • THERE ARE SPECIAL NUMBERS OF

  • REPUBLICAN CANDIDATES WHO ARE

  • TRYING TO DISTANCE THEIR

  • CANDIDACIES FROM THAT OF DONALD

  • TRUMP.

  • DO YOU SEE MORE OF THAT THAN YOU

  • NORMALLY WOULD?

  • REPUBLICAN SAYING I AM A

  • REPUBLICAN THAT I DON'T SUPPORT

  • THIS GUY EITHER?

  • >> WE HAVE SEEN SOME WHO HAVE

  • COME OUT SPECIFICALLY AND SAID

  • THEY HAD NOT ENDORSED DONALD

  • TRUMP.

  • SOME LIKE SENATOR KIRK HAVE

  • ENDORSED DONALD TRUMP AND

  • RETRACTED THAT ENDORSEMENT.

  • WE ARE MORE SEEING PEOPLE

  • KEEPING THEIR MOUTH SHUT AND NOT

  • ENDORSE DONALD TRUMP OR SPEAK

  • OUT AGAINST HIM.

  • THEY WILL NEED HIS CONSTITUENCY

  • AND THAT REPUBLICAN BASE TO COME

  • OUT IF THEY WILL BE ABLE TO WIN

  • IN COMPETITIVE RACES.

  • BUT A LOT OF THEM ARE NOT

  • COMFORTABLE WITH DONALD TRUMP

  • AND DON'T BELIEVE HE HAS WHAT IT

  • TAKES TO GET OVER 50%.

  • MANY OF THEM ARE NOT SPEAKING

  • OUT AGAINST HIM BUT ALSO NOT

  • APPEARING WITH HIM WHEN HE COMES

  • TO THEIR STATES AND NOT

  • ENDORSING HIM.

  • JOE: BLOOMBERG REPORTED EARLIER

  • TRUMP IS SET TO MAKE HIS FIRST

  • SPEECH IN FRONT OF AN ALL-BLACK

  • AUDIENCE LATER THIS WEEK OR THIS

  • WEEKEND.

  • IS HE SERIOUS ABOUT TRYING TO

  • WIN SOME OF THE BLACK VOTE OR IS

  • THIS AN ATTEMPT TO POSITION

  • HIMSELF AS NOT BEING A SCARY

  • RACIST, OR SOME OF THOSE

  • MODERATE SUBURBAN WHITE VOTERS

  • WHO MIGHT OTHERWISE BE

  • SYMPATHETIC TO HIM BUT FIND HIS

  • CURRENT FOR TRAIL -- PORTRAYAL

  • TOO INTOLERABLE?

  • >> I THINK IT IS A LITTLE OF

  • BOTH.

  • HIS POLLING AT LOW SINGLE DIGITS

  • WITH BLACK VOTERS.

  • HE DOES NEED TO DO BETTER IF HE

  • WILL BE ABLE TO BE COMPETITIVE

  • AND SWING STATES.

  • HE ALSO WANTS TO REASSURE VOTERS

  • WHO ARE CONCERNED ABOUT WHETHER

  • HE IS A BIGOT, AS HILLARY

  • CLINTON HAS CALLED HIM.

  • HE WANTS TO REASSURE THEM HE CAN

  • BE THE PRESIDENT OF ALL

  • AMERICANS SO HE WILL GO INTO A

  • BLACK CHURCH IN SPEAK TO AN

  • AUDIENCE VERY DIFFERENT FROM THE

  • AUDIENCES HE HAS BEEN SPEAKING

  • TO.

  • HE WANTS TO REASSURE VOTERS WHO

  • ARE IFFY ON HIM THAT HE CAN

  • REACH OUT TO OTHER

  • CONSTITUENCIES AND THAT HE IS

  • NOT A RACIST.

  • THAT IS PART OF THE GOAL AS

  • WELL, THAT HE CAN GO INTO A

  • HOSTILE ENVIRONMENT, A COMMUNITY

  • HE IS NOT USED TO BEING IN AND

  • COME OUT STRONG AND GIVE HIS

  • MESSAGE.

  • AS PART OF HIS GOAL HERE.

  • ON SATURDAY, WE WILL SEE HOW HE

  • DOES.

  • MATT: THANKS SO MUCH FOR JOINING

  • US.

  • COMING UP, THIS YEAR MAY NOT

  • BE AS HOT AS LAST YEAR IN TERMS

  • OF MEGADEALS.

  • BUT THERE ARE IMPORTANT ONES TO

  • WATCH.

  • SUZY QUAN HAS PROTECTIONS OF

  • WHERE HEALTH CARE IS HEADING

  • NEXT.

  • THIS IS BLOOMBERG.

  • >> "WHAT'D YOU MISS?"

  • IT HAS BEEN A QUIET MONDAY FOR

  • DEALS AS WE WRAP UP THE LAST

  • WEEK OF SUMMER.

  • JEFF ASKED SUZIE WONG HOW M&A

  • IS LOOKING THIS YEAR.

  • >> WE HAD BEEN RUNNING EVEN WITH

  • 2014.

  • YEAR TO DATE, 2016 IS A LITTLE

  • BEHIND.

  • IT IS ABOUT EVEN WITH THE

  • 10-YEAR AVERAGE.

  • TOO EARLY TO DRAW A CONCLUSION

  • ABOUT THE YEAR BECAUSE A COUPLE

  • OF BIG DEALS CAN CHANGE THOSE

  • NUMBERS.

  • WHAT I WOULD SAY IS INTERESTING

  • IS THE LAST THREE OR FOUR WEEKS,

  • WE HAVE HAD AN INFLOW OF NEW

  • MANDATES THAT COULD BE

  • INTERESTING.

  • >> I KNOW YOU SPENT A LOT OF

  • TIME IN HEALTH CARE.

  • HOW DOES HEALTH CARE LOOK?

  • YOU HAVE BEEN ON A BUNCH OF

  • DEALS.

  • HOW IS HEALTH CARE LOOKING?

  • >> HEALTH CARE IS ALWAYS BUSY.

  • THAT IS WHY IT IS SUCH AN

  • INTERESTING MARKET.

  • THERE ARE ALWAYS DEALS GOING ON.

  • WHAT IS INTERESTING IS IF YOU

  • LOOK AT THE PATTERN, WE HAD

  • SEVERAL CYCLES OF CONSOLIDATION

  • WITH LARGE COMPANIES MERGING.

  • WHAT I FIND REALLY INTERESTING

  • IS WHAT YOU ARE SEEING NOW IS

  • DEALS THAT FOCUS ON SCIENCE.

  • I THINK THE REASON THAT IS

  • HAPPENING IS COMPANIES ARE

  • LOOKING FOR GROWTH SO THEY NEED

  • NEW SCIENCE.

  • YOU KNOWST IN R&D BUT

  • WHAT IT TAKES TO BRING A PRODUCT

  • TO FRUITION.

  • A LOT OF MONEY AND TIME.

  • THE SECOND REASON IS BIOTECH IS

  • BECOMING A MORE MATURE INDUSTRY.

  • YOU HAVE MANY MORE COMPANIES NOW

  • THAN 10 OR 15 YEARS AGO THAT

  • HAVE DERISKED.

  • SOME COMPANIES HAVE BECOME VERY

  • BIG.

  • ACQUIRERS CAN LOOK AT THESE

  • COMPANIES AND SAY I CAN SEE THAT

  • BECOMING BIG AND HAVING A BIG

  • IMPACT ON ME.

  • YEARS AGO, EVERYBODY WAS

  • TRYING TO BUY DRUGS IN THE

  • HEPATITIS SPACE.

  • NOW IT SEEMS WE ARE IN THE ERA

  • OF CANCER DRUGS.

  • WHAT IS THE NEXT AREA THEY ARE

  • GOING TO GO AFTER?

  • >> YOU HAVE TO LOOK AT IT IN

  • TERMS OF, THEY LOOK FOR BIG

  • MARKET PROFITS.

  • THEY FIRST WENT AFTER

  • CARDIOVASCULAR AND CHOLESTEROL.

  • THEN IT WAS HEP C.

  • AND NOW I'M COLLEGE HE.

  • BEFORE I GET TO WHAT IS NEXT, IT

  • IS KEY TO REMEMBER ONCOLOGY IS A

  • BIG MARKET.

  • I THINK WE ARE AT THE TIP OF THE

  • ICEBERG ON ONCOLOGY.

  • I THINK THAT WILL GO ON FOR A

  • WHILE.

  • I TALKED EARLIER ABOUT THERE

  • BEING A LOT MORE MATURE BIOTECH

  • COMPANIES.

  • ONE IMPORTANT POINT IS IN THE

  • SEARCH FOR GROWTH, IF YOU LOOK

  • AT THE BIOTECH MARKET FIVE YEARS

  • AGO AND ACQUISITIONS, PHARMA

  • COMPANIES USUALLY LOOKS FOR

  • COMPANIES CLOSE TO LAUNCHING A

  • DRUG.

  • IN THE LAST FIVE YEARS, A LOT OF

  • DEALS GOT DONE BEFORE

  • COMMERCIALIZATION MEANING THEY

  • WERE WILLING TO TAKE SOME RISK.

  • I THINK ONCOLOGY IS GOING TO GO

  • ON FOR A WHILE.

  • THE OTHER AREA IS ORPHAN OR RARE

  • DISEASES.

  • YOU HAVE SMALL POPULATIONS.

  • WHEN YOU BUY A DRUG OR COMPANY

  • IN THAT SPACE, YOU HAVE LESS

  • PETITION IN TERMS OF R&D BUT YOU

  • ALSO HAVE MORE PRICING

  • FLEXIBILITY AND CAN SHOW REAL

  • CLERICAL IMPACT.

  • OUT, ILOOK SEVERAL YEARS

  • THINK DEMOGRAPHICS WOULD POINT

  • ME TOWARDS THINGS LIKE

  • ALZHEIMER'S, PARKINSON'S,

  • DEGENERATIVE DISEASES.

  • >> YOU SPEND A LOT OF TIME ON

  • CROSS-BORDER DEALS.

  • COMPANIES IN THE U.S. BUYING IN

  • ASIA OR EUROPE.

  • BREXIT, HAS THAT BEEN THE IMPACT

  • WE WOULD HAVE THOUGHT?

  • HASN'T SLOWED DOWN -- HAS IT

  • SLOWED DOWN M&A?

  • >> BREXIT HAS HAD SOME IMPACT ON

  • THINKING.

  • I DON'T THINK IT WILL IMPACT A

  • COMPANY THAT HAS A STRATEGIC

  • IMPERATIVE TO INVEST IN A

  • CERTAIN MARKET OR PRODUCT OR WHO

  • REALLY NEEDS GROWTH.

  • I THINK TEMPORARILY PEOPLE ARE

  • TRYING TO ORIENT THEMSELVES

  • TOWARD WHAT WE THINK HAPPENS

  • NEXT.

  • I THINK IT IS VERY COMPANY

  • SPECIFIC.

  • YOU HAVE TO LOOK AT THE

  • INDIVIDUAL COMPANY.

  • MULTINATIONALS OFTEN HAVE

  • OPERATIONS IN DIFFERENT PLACES.

  • WHERE IS HEADQUARTERED DOES NOT

  • DETERMINE THE EXIT OF BREXIT --

  • WHERE IT IS HEADQUARTERED DOES

  • NOT DETERMINE THE IMPACT OF

  • BREXIT.

  • >> THAT WAS EARLIER TODAY.

  • TIME FOR A LOOK AT SOME OF

  • THE BIGGEST BUSINESS STORIES IN

  • THE NEWS RIGHT NOW.

  • 'S HAS OUSTEDINES

  • THE PRESIDENT.

  • AMERICAN SAYS KIRBY IS LEAVING

  • IMMEDIATELY.

  • HE WILL REPORT TO UNITED C.E.O.

  • OSCAR MUNOZ.

  • SOUTHWEST AND THE PILOTS UNION

  • HAVE AGREED ON THE BASICS OF A

  • CONTRACT.

  • RAISELD PROVIDE A 15% PAY

  • FOLLOWED BY FOUR ANNUAL

  • INCREASES OF 3% EACH.

  • FINAL WORDING IS EXPECTED TO

  • BE NEGOTIATED BY THE END OF THE

  • WEEK.

  • THEY HAVE BEEN IN TALKS FOR MORE

  • THAN FOUR YEARS.

  • THAT IS YOUR AIRLINE FOCUSED

  • BLOOMBERG BUSINESS FLASH.

  • >> COMING UP, WHAT YOU NEED TO

  • KNOW TO GEAR UP FOR TOMORROW'S

  • TRADING DAY.

  • THAT IS COMING UP NEXT.

  • THIS IS BLOOMBERG.

  • >> DON'T MISS THIS.

  • WE HAVE HAD GDP.

  • TOMORROW WE GET GERMAN CPI.

  • MATT: DON'T MISS HOME PRICES

  • COMING OUT AT 9:00 A.M. IN NEW

  • YORK.

  • JOE: AND I WILL BE LOOKING AT

  • CONSUMER CONFIDENCE AT 10:00

  • A.M.

  • MATT: THE ULTIMATE DON'T MISS.

  • AN INTERVIEW WITH STANLEY

  • FISCHER LIVE.

LONGEST SLIDE SINCE JUNE.

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