pimco? >> paul is a valued colleague and close friend. he made important contributions to this firm. we look forward to his continuing engagement. >> sounds like he is sticking around them? fair assessment? sticking around? >> each of us make our decisions but, of course, paul is an important part of pimco and he is part of our team. >> so coming up we are going to get to the second part of that interview. that was with ceo doug hodge. the next part is with the new cio is danniveson. first morning star downgrading pimco total return fund from bronze rating to gold rating. let's get their response to the pimco interview and bring in russ from morningstar. i am looking at tweets here. some people said hodge had his talking points. what did you expect? that's what they are going to do and my job is to try to get through that. is there anything that you heard that makes you go back to gold from that interview from the rating on pimco? >> no. it really doesn't move the needle for me. i think ther

dick weill left pimco because of another problem, talk about a lot of infighting at pimco. dick weill didn't get along with who the ceo of pimco used to be, bill thompson. he left the company when mohammed alarian got there. what i think has happened here is the relationship between dick weill and bill gross is the reason that we are seeing him back now at janus. let me see if i can't get this back in my ear. i apologize. i can't speak -- i should say, i can't speak to whether he was pushed or left on his own volition. i can say this. a number of people very close to pimco had no idea. this is shocking and surprising everyone, not just in the markets, but people literally in the room. that unto itself is surprising. i whether he is gone and this is a surprise to them this morning. we will continue to find out what's going on. it is really the relationship between so many people inside pimco and all the different infighting and troubles between bill thompson, dick weill. it's remarkable where things have gone in all of this. >> the largest bond shop by far at pimco. a couple

a cover story on pimco. you spoke to bill's wife. >> when he and i spoke a few months ago, it was obvious that he was deeply unhappy. he had been incredibly successful as an investor but that success brought all sorts of new management problems. his firm got so big and unwieldy he needed a lot of help to run .t he is sort of an introvert. he likes to look out bond prices. he does not like to go around making sure everyone is happy and doing hiring decisions, hr. >> he doesn't like to travel much. does not like to surround himself with a lot of people. routine.a man of he eats special k with blueberry every morning. >> stephanie raised a question -- >> he has a cat. >> how much money will follow bill gross to janus? i did some math. i know that that scares you. >> canadian math. >> until yesterday, shares of janus were trading at about one point 75% of janus' assets under management. they have a new market cap today, stock is up 35%. if you do a little math, you come to the conclusion that the market is imply

this is a negative announcement for pimco. pimco does have very deep resources. they have a lot of bench strength from a portfolio management side. but we do think this is a negative announcement. we are advising our clients that -- to be cautious and we want to see the succession plan that comes out of the pimco later this afternoon. >> have you gotten calls from clients already? >> yes of course. >> lots? i mean if your phone ringing off the hook. >> we've been proactive with our clients and reached out to them as well. and we'll be dpieding them through the decision process in terms of what their overall strategy should be going forward. in terms of this. the marketplace is very concentrated into really three firms. >> i was just going to ask. what are the alternatives? >> well there are alternatives out there. but these are significant allocations. a lot of our clients are separate accounts, which is something that requires a governance structure in terms of moving the assets. we definitely want to see this succession plan. you might wonder is this an opportu

at pimco and janus capital. >> good afternoon. the financial world is reeling and trying to figure out what was behind the departure of bill gross from pimco. one could argue that perhaps some of the warning signs or flags were there. the firm has been in tumult for the last year or so following 16 trade months of redemption to its flagship ones which is the world's largest bond fund.that was downk of 200 $33 billion and now down to $22 billion in assets. bill gross is leaving the firm he founded back in 1971. there had been some infighting as well at pimco and there was the departure of his top lieutenant, mohamed el-erian who went to the parent company alley on's as a global economic adviser. that is the background here we have seen. hass going to janus which struggled to get its fixed-income business up and running. we talked to jack vogel at vanguard earlier about the no gross legacy for the mutual fund industry. >> it's a big loss to the mutual fund industry. he has been a pioneer. he is in many respects changed the world of

and the new cio of pimco group. it is their first time ever on tv together. we will find out what happened with bill gross, what is going to happen to pimco going forward and what is happening to your money right now. we have tyler mathisen. we have bethany here and a big selloff for crude oil. the best news is that mandy is back but her visa to new jersey has been revoked. shis

is leaving pimco. i just want to read one headline for you. they are saying they had fundamental differences. the speculation will now begin what those differences exactly where. e.r here are the top 10 stories you need to know about today. number 10,tart with a bid forey have one a hepatitis c treatment. it was approved faster than usual because it addresses a major european health challenge. >> the world's biggest chipmaker is taking another shot at raking into the market that runs chips for smartphones. giant's, the tech struggles with its iphone has been linked to another problem. they have issued another a policy -- another apology. >> shares of over 200%. analyst with a neutral rating on go pro. ind out when the report at the end of next month. >> beating wall street estimates as corporate commands used in demandrices -- boost in share prices. >> alibaba short-sellers are making their first bets a week after your they price their biggest ipo. short 1.1 million shares, and we are now 3.1 percent o

step outside of pimco. maybe across the street from pimco to do it again. i think that is big part of his motivation. david: david, he really is or at least was the master of debt markets. i think you agree, nobody knew debt markets as well as he did. what do you think he got so wrong over the past year-and-a-half? i mean a lot of people, a lot of people got the interest rate thing wrong. people thought interest rates were going up. they never did. is that what he got wrong? can you put your finger on one thing that he got wrong? you. >> know, i would have to take it in the wake of the new normal, which was in my opinion, might correct me -- [inaudible]. i have to think there was a soft period in between when pimco hadn't decided what they thought the world was going to be and it was a very tumultuous period. we got buffetted by it as well. i can't put my finger on any one single bet. certainly a call on treasury rates was a material contributor. overall i think a lot is being made out of numbers weren't th

if he can bring managing $400 billion at pimco. if he can bring a quarter of that we estimate 50 cents a share to janus. right now estimated to make about 90 cents. that takes it to $1.40. at 50 billion that is 25 cents. we think impact on earnings could be huge. >> your assumption is 40 billion to be brought over? >> he is managing 400 now. so if he can bring 10% of that you get to a number like 23 cents. >> what if he brings nothing. >> it would not be a good trade. he will bring assets tomorrow. >> bill is a friend of the show and i consider him a friend of mine and a great guy. is there a number that you have to put on this where you say this doesn't make sense anymore? what if he brings 5 billion or 50 billion like that is not worth it? >> at $5 billion he is earning somewhere between 50 basis points of average fees. he is a huge name in the mutual fund world. he is a great name in retail investing. at 50 basis points average fees he is going to earn his keep even at 5 billion. he will bring a lot more than 5 billion. >> did y

stay with pimco. so this is very much an offensive. the methodology hasn't changed. our performance will still be there for you. stay with us. but of course janus hopes that they go with them. >> a huge wild card here with janus that i don't know the answer to. these firms, they hire consultants. by law they are required to have a consultant. call it a russell, they are by law required to have these firms. >> an adviser. >> to get on the approved advised okay list at russell, pca, cambridge, et cetera, you have to go through this expense extensive vetting process, et cetera. so i don't know the answer to this. is janus on the russell, pca, vetted -- because if it's not, nobody can recommend that they give the money from pimco to janus. >> and how much of that is a track record. this fund has only been around since may 27 of this year. so it's a very young fund. a shell of a fund if you will for right now. but it needs to build up a track record and show fiduciaries that it can be a viable investment o

pimco in newport beach. bill gross turned $200 into 10 grand at a table at vegas and today he decided to fold them at the company he created. >> legendary portfolio manager bill gross leaving pimco. >> reporter: a year ago who would have guessed but trouble began in january. >> resigning effective mid-march. >> reporter: the two men had a very public break-up. >> there's no clash of personalities here. we got along real well. >> drama at pimco back in the headlines tonight. >> reporter: investors didn't like it. >> pimco, you know, had a rough patch. >> reporter: former portfolio manager rehired as chief economist. >> did they beg you to come back? >> i would not use the word beg at all. >> reporter: this summer, parent company continued to express support. >> is bill gross past the sell by date? >> bill is working hard on the recovery. >> reporter: just a week ago, bill gross weighed in on our own air about the fed. >> what would i do? considerable period of time, let's stop and evaluate the evidence. >> re

does not define pimco. hodge also said there's an overwhelming sense of relief following gross' depaurture and they gave isaacson a standing ovation after being designated cio. according to the journal, pimco suffered $10 million in outflow and some product it could lose $100 million or more but the firm is confident a majority of the clients will stay. >>> the new vote of confidence from its parent company, the financial times reports allianz insists no plans to sell pimco or to interfere with the business. jay rouse says they have been prepared for gross' departure and were fully informed on the search for a successor in recent months. allianz took a big fall following gross' departure on friday but it is up a tick this morning. a lot of people are saying the move in treasury market on friday was dubbed as the bill gross departure, the big bill gross sell-off, but some say it is better than the gdp data we got on friday. the u.s. saw investors move into risk-oriented sectors. what are your thoughts on whe

how crippling is this to pimco or is it at all? >> gross has obviously had a huge impact and imprint on the investment strategy across all funds but this is far from a one man show. what he has at his disposal is virtually unparalleled in the bond industry. >> i know you were getting a lot of calls from clients today asking what should doi with my funds. >> first they have to do due diligence. it is very likely or possible that this could occur. >> you know, michael, they have got great research capabilities but you all at morning star put not just total return on watch, you put all the funds that you rate on watch. why did you do it? >> that reflects the imprint we expect further news later today on his successor but there is also going to be some unofficial or less formal repercussions, too. how the investment process might get adjusted. >> bond investors are a very conservative bunch of people. >> aren't you better off moving your money? >> pimco has returned 10% compared to the benchmark of around 1.5. they understand the durat

all of the fees higher than pimco's. is it worth buying into that fund. >> a home run for janus, let's face it. gerri: what about the individual investor? that is who i care about? >> individual investor, it is not bill gross or pimco. we have many options. that is the beauty of being individual investor. a lot of money managers, bond managers reported inflows already with more money coming in. there is a field that out there. not one or the other. gerri: who are big winners? >> big winners are all the fixed income managers across wall street. those are the big winners in this whole thing. as far as individual investors go, they need to ask them because it was bill gross and is that good for those high fees? that is question that you have to -- gerri: i think janus will be charging high fees. >> i would say till will be interesting to watch he will swing for the fences. he wants to go out good. he wants to do really well. he can move the needle with a $10 billion fund. gerri: he will be agile, fleet of foot. easy for him

pimco, lots of people are invested in pimco. a lot of people don't have a lot of choices by virtue of what their companies offer. should you be worried if you're invested in pimco right now? >> well, it's kind of too early to tell to be honest with you. whether they should worry about it. that fund is managed directly by growth. so what you're paying for first is a total bond market index fund is hopefully some of the advantage that he might have. additionally he has been able to bring additional return over the index. but that fund has been in outflows every month for a long time. >> meaning that people have been taking their money out of the fund. >> that's right. think of yourself as portfolio manager. you sign on to your terminal that day and you decide to buy some bonds that day. wait a second, i have to sell. you're selling with you would normally like to be purchasing things. that's where some of the discrepancy is. in the etf, which is new beer and smaller, they had an opportunity to buy some bonds that he might have had

pimco is not better off without him. liz: talk about performance, for month after month, there were redemptions, people were pulling money out of pimco. >> things started getting better lately. we did a story about that. liz: maybe because pimco did a bunch of new guys. we've had mark keisel here. >> he was doing that. liz: he spread it around. >> he was doing that. there's a reason why the market traded off on pimco and traded up on janus. short-term gains -- >> we're almost at the highs of the session on the markets. >> right off the bat janus went up and pimco went down. the reason why is he's considered one of the best. and i'm just saying, my guess is this is -- this was a battle and it's going to be interesting to see the reporting. i know how i'd do, it between a quirky founder of a company that sold it, and didn't get it out of his system, that it wasn't his anymore, and for that, he had massive battles with the current management and it became too much for either of them to survive. liz: the meow heard around th

>> rich, pimco has had a lot of troubles but sounds like this may go much further than pimco and reach out to other mutual fund operators, true? >> absolutely. at least as part of what we've been hearing from some analysts and attorneys this might be a broad industry practice the sec is looking into. not sure what particular funds they could look into, but again this pricing structure that pimco says is within industry best practices and number of traders according to "the wall street journal" say some of that pricing mechanism might be a popular use among these types of assets managers and could be under investigation by the sec. gerri: rich, great job reporting that. thank you so much. >> thanks, gerri. >> coming up, we answer the question, is this recovery for real? and next, the three biggest soda companies vow to help americans cut calories but is this big announcement all for show? ♪ the lightest or nothing. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest, ...harshest... ...or nothing. at mercedes-ben

to take over management and pimco. that's according to services for a dow jones report. it is unclear according to the report whether he will take over the total return fund. so dan iveson is likely to take over portfolio management at pimco. this is a man who is currently part of the executive management team and is the head of the mortgage credit portfolio team at pimco. so again dan iveson likely to take over the portfolio management dutiy ies according dow jones sources. >> interesting news there. up next shares of blackberry in rally mode. up more than 6 and a half percent after earnings beat estimates and we'll talk with an ceo john chen in a moment. and cnbc getting a the exclusive look at the apple's iphone testing lab and what we found out later this hour. one day, machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today. for that moment, where right place meets right time. and when i find it- i go for it

when you look at profit, pimco is a fraction. the asset management classes a fraction of what they do elsewhere. this is fundamentally an insurance company driving profits. visit -- when you're visiting and asset management -- if there is a teachers union in oklahoma, do you go on the private plane and try to make the case? i think you do. >> i think you probably do, but the one question i have been manking about is how can a come out on a friday afternoon, quit, and restart later. they probably have got something on their contracts, which means when they leave they can go -- they cannot go someplace else. >> you will wonder why didn't they have a noncompeting clause? he was there from the beginning. apparently they didn't have a noncompete clause, and they didn't think about it. the british prime minister -- ?hat you railed his plans ts there isaid, even some contingency you cannot plan for. i am notisclosure, going anywhere before i start getting e-mails from my manager. a big move down. the assets were already fleeing .ill gro

what does this mean for the investors in pimco funds? >> the news today, regardless of the regions behind it, it stands true that it was a huge shock. we saw treasury yields rise, we saw spreads widen -- >> a decline in the value of the shares of the parent of pimco. >> 16 months of outflows, it has been a tough time in the bond market, and he has been open about that. but it is true that that was adding to the managerial pressure and personal pressure that he was coming under it pimco. >> how investors may or may not be choosing where to allocate their capital. to they go for a specific fund, or do they look for managers that they believe in the long-term they can trust and they can rely on? >> i think the answer to that is both. it is certainly the larger firms such as blackrock, and so forth that have a great amount of stability. people are comfortable putting their money there. if you jeweled on further, you want to put your money with a very seasoned recessional -- professional who knows how to manage it all kinds of markets. bill g

>>m a pimco investors -- pimco investors are with drawing their dough. ♪ >> pimco is racing from the fallout of bill gross's departure. take forhat will it the u.s. and russia to improve relations? we have an exclusive interview with russia's former minister -- russia's foreign minister. stay with us. ♪ >> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. >> good monday morning, you are " onhing "market makers bloomberg television. bill gross leaves pimco. the firm he cofounded to run a tiny fixed income. what is pimco without the bond king and who benefits from its distress? we direct our question to michael. good morning to you. pimco better off or worse off without bill gross? is ane might think that open question. the main thing in our minds is most of the team that backed him and contributed to his success in the long-term is still in place. the firm and its main strategies are still run by very seasoned portfolio managers and each one remains backed by payment resources. >> why does it seem that investors are so spook

speaking of treasury, big news out of pimco. bill gross leaving pimco joining janus. the major action was to sell. with his departure, is the strat skri going to change? >> the knee-jerk reaction was probably wrong. treasury market is huge. bill gross has now got to go build a portfolio over at janus. there are still going to be borrowers in that sense. the high yield space, hyg, jmk. if they get redem shunptions, p will be forced to sell the bonds. that's what you watch. that covered my hyg short. i will be back to short it again. it has been a great trade. >> the pimco return fund alone is $221 billion. janus has $31 billion in assets under management as a whole. if he goes and builds a bullish portfolio. >> why are you selling at pimco? >> i am not. i am just raising the question. >> let's assume this is done in a way there is other people driving the ship. they have been driving the ship for a few weeks. there has been, as we hear, a lot of turmoil behind the scenes. i don't think he was suddenly running away from a portfolio. if there is any selling in the bond m

what does this mean for the investors in pimco funds? >> the news today, regardless of the regions behind it, it stands true that it was a huge shock. we saw treasury yields rise, we saw spreads widen -- >> a decline in the value of the shares of the parent of emco. pimco. 16 months of outflows, it has been a tough time in the bond market, and he has been open about that. but it is true that that was adding to the managerial pressure and personal pressure that he was coming under it pimco. how investors may or may not be choosing where to allocate their capital. to they go for a specific fund, or do they look for managers that they believe in the long-term they can trust and they can rely on? that isnk the answer to both. it is certainly the larger firms such as blackrock, and so forth that have a great amount of stability. comfortable putting their money there. if you jeweled on further, you want to put your money with a --y seasoned recessional professional who knows how to manage it all kinds of markets. bill gross represents that. i

gerri: lots of changes at pimco as we've seen. not only did michael gross leave or bill gross leave, other people are taking top positions there including one who won "morningstar"'s bond fund manager of the year. so back to you, michael. one of my big concerns, and you mentioned it as a big reason for your downgrade, this idea of redemptions. and my question is, how does that reverberate back to individual investors? if i'm holding this fund, pimco total return fund, how do i get hurt by institutional investors and others dumping the fund? >> i'd like to start by saying that in our analysis the fund is actually very well-situated to weather outflows in the near term. there are many sources of liquidity in the portfolio that would help the managers adjust. where the risks to investors come in if we see outflows either pick up or continue for a long period of time. in theory that could make it more difficult for the portfolio managers to execute their strategies. that would be run risk to investors in the fund. a second potential r

pimco more broadly. what should i do if i own one of those funds with which he was so closely associated? >> in chicago growing up i had a poster of peyton and jordan and in the middle was bill gross. bill is 70 years old. he is going to make a point at janis. i think bill will make a bang. >> when you are talking about a stock picker like a peter lynch leaving fidelity years ago that is a huge deal because the market has perception of a greater variance. i think people should sit on their hands here. the nature of bond trading is the more sdat thing than stock trading. i think you said it to yourself so many people own it and barely even know they own it because it is in funds. >> i think it opens up the conversation of owning bonds right now. does that mitigate risks? it illuminates a bigger question. should you own as many bonds as you used to? >> you going to jump into stock market? >> i own negative correlation. much better off than owning a bond portfolio. >> guys, we got to leave it there. i know

i was jealous of pimco back then. i think it made sense to move in the direction of less centralization. we still have leaders. you've got to talk to each other and explain what they're doing to each other. part of pulling people together. you can see what happened at pimco over the last two years with mohammed leaving. more faces coming into the pick chu. people running their own funds. >> dancing with glee over at blacksflok. >> i haven't therein there. >> an educated guess? >> i think our turnover and head count in the last ten years, you don't wish that on anyone. i think he's going to run a great leader. >> thank you so much, peter. >> my pleasure. >> with us for the whole hour. >>> when we return, a first on cnbc. interview with charlie evans. and plus we're going check in with our platinum portfolio manager. and later, nfl hall of famer warren sapp set to tackle the. another big hour of "squawk box" coming right up. you can only see it right here on cnbc. if energy could come from anything?. or if power could g

pimco's ceo and cio will be on street signs today. you're not going to want to miss it coming up at 2:00 p.m. eastern. a lot of focus still on pimco, the treasury market after that abrupt leave from bill gross. what will that do to the markets going forward? a lot of firms are expecting outflows from the pimco fund given the departure. >> absolutely. it's been a big hit. there was a big move in the treasury department on friday. and as well as the u.s. bond market, european high yield bonds at this stage, a slight rebound from the summer sell-off held by easing tensions and un conventional policy measures. where do we go from here? carolin joins us now from the goldman sachs leverage conference. >> hi. exciting to be here. it's the fourth annual leverage conference and it gathers up to 500 investors, up to 30 issuers and, of course, the experts from goldman sachs. let me get to one of them, dennis coleman. thank you so much for talking to us today. we've seen huge issuance in europe and hue yields this year. if we look at the first ha

bill gross leaving pimco for janus. janus capital stock jumping on the news. could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. >>> all right. that does it for us today. rebecca, thanks for being here. now it's time for "squawk on the street." >>> good morning and welcome to "squawk on the street." i'm david faber along with jim cramer live from the new york stock exchange. carl quintanilla is off today. let's give you a look at futures one day after a very big sell-off on wall street with the s&p and dow negative by well more than 1%. the nasdaq in particulately, as we

they have a lot of money in pimco. what we understand is that most advisors at morgan family are saying they won't put money back into pimco. >> liz: but are they putting it to janice. >> we don't know yet. i think they will. i mean, i think they will. what they are saying is they basically, a, ignore the conference call. they're going to take money out. they're looking to redeem shares until they figure out what's going on with the company. they are going to move it elsewhere. i'll tell you you this, they are worrying about a 60 billion-dollar withdrawal, not from the whole company. the company has 2 trillion in assets. that wouldn't be so bad, but from one fund the total return fund that's the fund that bill gross ran. as you know, he started yesterday at chan i say. he wanted to take his long term record with him. he has one of the best long-term records in bonds in finance. so basically what we understand is that at least this is what pimco is telling financial advisors and are telling the fox business network they

singling out pimco? >> i think they're looking across the industry and all kinds of products that are -- you know, that are marketing to retail investors. that is what the s.e.c., really, should be doing. i'm not saying it's outside of their purview, but i think, you know, these kinds of -- these kinds of leaks, you know, really detailed information about bill gross coming in and being interviewed, you know, it's just the images, it's not the way to really encourage future cooperation from firms with s.e.c. investigates. really done just to embarrass some of the parties here. these are complicated questions. they're involving difficult parts of life. if you think about it, these firms hiring outside firm toes handle pricing. the reason you do that is so that you don't get accused of just what they seem to be accuseding pimco of doing, of self-pricing these assets. you want outside pricing. it's a difficult, you know, investigation. >> tony, great point there. stay with us a little longer. >>> carolin, 14

so closely identified with pimco that it was almost unthinkable pimco could exist without bill gross and bill gross working for someone else. it would've almost been better if bill gross had been hit by a bus as opposed to going to work for another firm. david einhorn in greenlight capital, bill ackman, and berkowitz. identifiedfirms are with those individuals and investors cannot possibly ifgine what it would mean those people were not there and which of yourint holdings are subject to key person risk? if that key person were to disappear, tragically, something else might happen. what would happen to your money? if they're illiquid investments, how quickly could you get them out? they amassedw these assets in the first place, i really trust this guy and he seems really smart. but then it becomes a huge risk. much.nk you so i want to head to hong kong overseas were tens of thousands of pro-democracy protesters took demand freets to elections. the protest began on friday over china's plan to control the 2017 leadership election. andrew joins us now on the phone from hong kong. what is

people at pimco know that. thank you. appreciate your thoughts today. >> thank you. >> thank you so much. >> you bet. >>> heading toward the close, 40 minutes left in the trading session. the dow looks like it wants to turn positive. down just seven. we were up 73. down 54. so maybe we're going out here with a gain. who knows? >> indeed. wild swings today, bill. major averages racking up a month of wild swings thanks to various fed comments, events in hong kong, middle east, russia, you name it. find out what's worrying main street investors the most heading into the fourth quarter. that's coming up next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. but parallel parking isn't one you do a lof them.ings

and pimco -- >> and pimco's total return fund made it difficult for bill gross to move. i want to get the company news in the meantime. we will start with softbank. in talks to dry -- to buy dreamworks animation. the film studio, turning it into a mini walt disney. softbank senior executives have not formerly discussed the potential acquisition. air france pilots ending their two-week strike. they plan a full schedule as the -- as they try -- pilots began striking on september 15. the walkout has cost the airline about $25 million per day. apple accused of prospering from a legal tax deals in ireland. "the financial times" says the european commission has found a tech company benefited from illicit state aid. >> shocking. me?you kidding >> know, we are not. our twitter question of the day -- this is a serious one. what is the most underestimated global conflict? bsurveillance. you are watching "bloomberg surveillance." ♪ >> good morning, everyone. coming up at 11:00 a.m., "market makers." nigel travis. he is my favorite ceo on the planet. many times did you read that?

gross from pimco. we will bring you more on why his bond etf is now under sec scrutiny. -- thatrage to come story to come. a drum may be coming to a neighborhood near you. ♪ >> here's a look at tech stories. apple is a public -- is apologizing for a glitch in its new system. lost cellular service. isgle's android software apple's biggest rival in wireless. about sales on bloomberg television. >> i would say that this brutal competition between apple and google has enormous benefits for consumers worldwide. that competition, which i think is the defining fight of the computer industry today, but if it -- benefits people at the global level. boosted hisison has amount of stocks to almost $10 billion, 250 million shares that he has pledged. that he isannounced stepping down as the cio and a technology officer for oracle. and small unmanned aircraft for filmmaking. this is according to people with knowledge of the plan. that would be the first on the commercial drone flights have been approved in the con

and meanwhile pimco's total turn at $222 billion at the end of last month. van guard total bond market index fund had $121 billion. they could be poised for asset growth because investors are looking for other ways to play the bond market besides the index fund. they want active managers who might be able to profit or hedge losses. >> so agile. >> right. >> dom, thank you very much. three winners in today's market, that's coming up. first what is going on on street signs. >>> five winners because both of you. >> we love you. >> all right. protests rocking hopping congress. sending stocks down. we have your definitive time line of events and what is likely thappen next. plus big hope in the fight against breast cancer. and herb greenberg will join us. we'll ask him why he slammed this fine show on twitter. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big

i think it will happen quickly but i think pimco will be able to recover. i think they have some smart people there and a lot of people will opt to do nothing. >> the question is, guys, the impact if you do have these tremendous outflows, if pimco is selling in any great numbers and there's an impact on rates? >> it's tough because a lot of people selling are not going to go to cash. a lot of people selling are going to end up at vanguard. you will say for every seller of a given bond, there's probably an offset in that the money found a home in another fund that wants to buy it. >> coming up, alibaba options start trading today and money to be made. pete najarian takes you to trade school next. and grant hill made a hefty bid for the clippers and while that one didn't work out, he says he still wants to own an nba team some day. we'll find out where he's looking when he joins us live. that's straight ahead. whenwork with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because ther

we will be joined by pimco's joe gross -- bill gross. remember that idea that bill gross pushed years ago, he was in 2010he signees saying inflation would grow rampant. if you listen to that letter, you would have been $1 trillion poorer. is the former head of the congressional budget office and office of thef recession in the aftermath. first, i want to stipulate that i think the fed's response in the crisis was the most powerful policy response we had. they ran the central bank said land markets with liquidity and they had to do imaginative setting up a facilities. qe2, all of that, they never got the growth to take off. again and again we have seen the fed marked down the growth forecast. economic growth recovery and that is a significant cost. we have destroyed capital ,arkets in favor of treasuries and the historical record on the fed is that they move late coming out of recessions. there is a significant uptick in recessions -- inflation and they have to deal with that. date in our letter, i said this is the phenomena, and i still

you, you probably have money with pimco. this is why this matters. charlie, go. >> also matters, correct me if i'm wrong, after the fed, who controls interest rates in this country? guys like bill gross. bill gross runs one of the biggest bond funds. if you notice, announced leaving this morning, bond yields went up. prices went down. this is big from that standpoint. a fascinating story. there is lots of stuff about him being fired tomorrow. melissa: right. >> i don't believe that. >> you don't believe that. >> i think this what happened. both side hated each other. i know internally bill gross was resisting attempts, he created pimco, sold it to allianz, the big german bank. resisting attempts by allianz to have succession plan. bill gross wanted to be there as forever. he looks at himself as warren buffett, will do it 15 years. he is 70 years old. the rubber met the road. melissa: do you think the rubber met the road when he started writing investment letters about his dead cat bob, who happened to be a girl? do you have a picture? kind of like he

some within the firm predict at least $100 billion will flood out of pimco. shares of janus capital down today, the company saw a surge of about 40% on friday, following the news. but janus wouldn't only one benefiting from bill gross's departure. investment firm and major rile of pimco, double line capital, saw the biggest inflow of the year on friday. it took in hundreds of millions of dollars, according to ceo. he says they saw between 400 and 500 million of net inflows following the news of gross's departure from pimco. hey, money wanted to find a different place to invest in fixed income. ashley: it found it apparently. >>> all right, there are nearly three million heavy due trucks on the road in the country. i'm always stuck behind one of them. they used 53 billion-gallons of fuel. more companies are looking to cut fuel costs and emissions. liz: how will that be done? a houston-based company helping major corporations including ford and general motors doing just that. we have bock lukefair, nat-gas, cng solutions co-ceo. bob, look what you've been able

what's next for pimco? the company's next move, when we come back. ♪ good morning. you are watching "the pulse." we are live on bloomberg tv, streaming on your tablet, and bloomberg.com. the kiwi is being crushed. let's show you what is going on. down pretty aggressively versus the dollar. the reason for this, the central bank has been selling the currency during august. here's the kicker. the prime minister, former head of fx at merrill lynch, is indicating he sees the currency falling significantly from here. that is the move we have seen this morning. according to the prime minister, more to come. what else are we watching? we are joined by hans nichols in berlin. anna edwards in birmingham. let's start with you. what next? how big a day is it after the king leftg it -- bond friday. watching to see if there are public announcement saying they are pulling their accounts with pimco's total and bringing them elsewhere. we have analysts saying from 10% $150 billiontion, coming out of the total return fund. these are estimates. i'm looking for hard data from either pi

. >>> pimco's make chief investment officer and ceo tell investors the world's largest fixed income asset manager is moving forward without its former manager, bill gross. >>> if it isn't broke, why ford is making a big change to its best selling vehicle for the past 43 years. all that and more on tuesday september 30th. >>> good evening, everyone, they say that breaking up is hard to do. but not at ebay apparently. the on-line ebay auction says it plans to spin up its lucrative pay pal division into a separately traded company sometime last year. the announcement is a drama immigraic reversal f ebay would benefit from a split. investors lining up to take part and shares up 8%, lining up for what it means to ebay investors. >> ebay's corey e commerce payments will stand on their own, a move the company believes will make sense, ebay only accounts for 15% of the business. >> as we continue, looking forward to 3.5 years, we think the competitive position and the competitive environment of commerce and payments are going through accelerating change that creates new sets of opportunities and

pimco is trying to calm clients after the departure of bill gross. the world's biggest bond funds have started reaching out to investors across the world. pimco says it will be business as usual and there will be no major changes in investment strategy. people watch pimco versus taking money out, there is no reason to believe the script is going to change significantly. pimco has always relied on in,, , whether inn income mortgages or corporate bonds. ofthat was a look at some your company news. i am stephen engle. thise world of watches ends on hong kong this week. to hear from the industry's influential guests. let's talk to one man who runs one of the most well-known watch brands. right here for the watches and wonders exhibition. thank you for coming in. you guys have been in business for less than two decades now. the competition has been there for 200 years. how does this work out for you? >> we are a relatively young brand. by strong differentiation approach associated to exclusive categories, it is rare to have one brand. >> this is the watch

outflows, neither pimco has given a firm number on of the record. the wall street journal said days saw $10 billion leave the pimco fund. they are bracing for a $100 10%-30% ofwhere from outflows from pimco. the more recent one at cap letter put it at 15% and it got be $150 billion flowing out. the fund has been under pressure. and some ways, it may force some of the asset managers to make a decision. make a decision about what they want to do. if you look at what it happened, they are down $65 billion. andfund in 2013 lost 1.3% finish in the 62nd percentile. make sure that people do not leave their funds and people spent a lot of time flying around the world assuring investors. competitiveof the landscape, what does it look like now? is changing significantly and a bond on land. what does that mean for the competitive story? >> as there are a lot of competitors out there. you have seen the short end of the, goldman sachs, j.p. morgan. the $25 have money in billion range. pimco has an offering. be one of their offering points. you look at his record

in addition, when you think about our view at pimco, although we see a normalization of rates, we see that on a slow pace, to a place where real rates will not have to be as high as they were before given slower growth and a lot of debt around the world. that environment is very supportive of equities. might not investors have paid attention to geopolitical risk as they might have in another environment. all this said, this geopolitical risk clearly creates uncertainty the. the middle east, russia, the impact that russia may have on business confidence in europe. in my view, given the back drop of the new neutral, as well providing buying opportunity in global stocks. withe managing director deutsche bank in london, in july, told bloomberg -- are people of the tenant right now? >> i think you have a certain amount of complacency, but if you look at the long time time horizon, looking at the depth of the financial crisis, people are saying, i need exposure to stocks because the system is going on. yes, that experience is behind us. therefore, where can i find exposure? looking forward,

that is a marquee product for pimco. they're worried about $60 billion coming out total return fund. they went out last week, got lines of credit. bill gross has been building up cash. this is kind of interesting. he was leaving because built up cash. a lot of people said he built up cash because he saw the bond market cratering. they have worried about investors taking over. on friday they paid two songs on trading floor. rem, end of the world as you know it, paul simon song, 50 ways to leave our lover. melissa: nice color. gopro calling release of new hero lineup. they are impressed with a entry level camera for just 130 bucks. the thing with this stock we've been asking all along, are they one-trick pony? they have a phenomenal camera, and you jump off highest building and land on your head and take picture whole thing. fantastic. you can post it on youtube and family can to profit off it. now they're saying they have a new suite of products including a cheaper camera. will it be enough, dominic. what do you think? >>