Look at the tenyear reaction. All of this on the eve of the big fed decision. Joining us is the chief executive officer for blackrock global fixed income. I know everybody wants to blame it on the brexit,ry, but the reality is the yield on the german bouund has been falling r 30 years so what does it tell you when the bonds of one of the biggest economies in the world are now a negative yield . So, first of all, i think youre right in terms of they have been falling for a while. Some of it is aggressive Monetary Policy and theres not enough bunds relative to what the ecb has been buying and that people use them to manage their risk and use them as hedges against credit, hedges against other sovereign risk so all of a sudden when theres a flight to quality you get the extreme moves that have created this dynamic today which, about by the way, bleeds into the u. S. Treasury market and other safe assets in the world today. Lets say its only the ecb or primarily the European Central bank doing the buying, rick f. That is the case, does the yield mean anything . If i buy something for myself, its not setting a market price. Yeah. Thats 100 right. I dont think theres anybody that i talk to or many people in the marketplace say im going to buy tenyear bunds as this level because they are a good investment. I think people are buying them, a, because they have shorted them against other assets and b, because they are a flight to quality and im going to hold them and, c, because theres so many of them around and you create these unbelievable moves, similarly in a move extreme way to whats happened to japanese government bonds and less so the drag that hits the u. S. Treasury market. If, for instance, the european banks are having to hold more capital through basel iii and the impact making those yields go lower and there was a report that Commerce Bank was looking at perhaps taking their money out because they dont want to have to pay negative yield anymore from the ecb. So its a longer discussion than the nature of our segment, but listen, i think what it does what it does is it forces you think about what you have to do. People have to get yield in their portfolio and people have to get returns so they look for other places to get returns. One of them, people say you can just keep policy at zero or negative rates if theres no after effects. The after effects are real and the mal effects are real. People look at storage, how do i storage assets . Do i go into gold and take more risk into my portfolio . I think its not fair when people say policy just means you can keep policy easy if you dont hit had the inflation target. There are other effects and youre seeing them play out in the markets today. Yeah. Im surprised we havent seen strong rebellion. The reports from Commerce Bank about just wanting to take the cash and stuff it in safes because its actually cheaper i thought was a real important moment in this discussion, rick. What do you do as an american investor, we presume thats what this audience is mostly at this hour even though were a global network, when you see yields falling like that . Do you reach for high risk yield or lowgrade debt . What do you do . So it is one of the more challenging environments that weve had in a long time. I think it means you have to diversify your portfolio. Try to get into places where youre not as effective by the distortion and rates. The Municipal Bond market has been a great place where people have taken advantage of a tax benefited yield that we think makes sense. There are parts of the carry environment today where whether its high yield and we would look at some of the securitized Asset Classes that make sense and own some places that are not distorted because of this incredible move in developed markets raise so parts of emerging markets, indonesia, india, where you get investment that makes sense and its not distorted by the monetary poll. I a negative yield doesnt look so bad as long as its within the rate of inflation. Are these yields dangerous for some people . I mean, if some people are so risk averse, they are willing to do that, buy a negative yield, is that unsafe . So it creates first of all, obviously, your return paradigm. In a stable way its not great, but you think about whats happened and one of the things people dont factor in as much. When you bring rates down you extend the risk of fixed income. You extend the duration of fixed income. People are sensitive when all it will take is small moves higher that can create a dynamic similar and not nearly as profound a way when you have the taper tantrum. Doesnt take much when the rates back up and you can create loss in portfolio. Thats a yes i think. We have to go, but a he makes a good point. Bill gross mentioned if you sell a bond for. 3 , a 30year bond like in toyota and it moves by. 1 of a percent you wipe out a year of return. Youre gone. Thats fair. Thank you very much. Do appreciate it. Lets get now to sue herera for a news alert. Sue . Thank you very much, brian, and this concerns the s. E. C. And the iex exchange. Basically whats happening is the s. E. C. Staff is recommending full approval of the iex exchange application. The full commission will vote on recommendation on friday. The only issue that they have to work out apparently is the speed bump which is designed to slow down the fastest frayeders and thats been a bone of contention with some of the other exchanges like ice. Iex was started by brads katsuyama featured in the book flash boys. There are other exchanges that are pushing back on that, but right now the s. E. C. Commissioners will vote on recommendation this friday. Back to you, melissa. All right. Thank you very much, sue herera. Take a look at amgen shares and outperforming the broader ivb index and down more than 6 for the year. Lets get right to meg turrell who has more. Meg, take it away. Melissa, thank you so much, bob broadway, the ceo of amgen, thanks for joining us. Nice to be here. I want to ask you whats been driving biotech more broadly this year. A lot of fears around the election, talks about drug pricing. How would you characterize just that rhetoric and how you expect it to continue going into the u. S. Election . I might start in a little different place. I might start with the fact that theres been a profound wave of innovation emerging from our industry over the past year or two and i think a lot of excitement around that innovation and clearly Clinical Results are driving some volatility and valuations and in addition there clearly is also rhetoric around the Political Climate that exists in the United States and the affordability in particular of the new innovation thats emerging to address some of the serious illnesses that we face as a society. How much does the election matter to your business . Who actually wins . Does that make a difference . I think the most important thing in our business is the ability to generate innovative drugs that address the needs of society, and we live in an aging society, society afflicted by a number of chronic diseases for which innovation i think is the answer, and so far more important than the political cycle is our ability to innovate and address the needs of patients suffering from serious illness. And i think a lot of this rhetoric is kind of depressing valuations. Its clear the ivb is down this year so much. As a Bigger Company in this sideways with a lot of cash, how does that influence how you consider deals . Well, we historically have enjoyed a mix of internal and external innovation in our business and we continue to look externally for opportunities to acquire innovative molecules or even companies, and i think the volatile climate that exists today makes it a little more difficult on the margin. In order to pinpoint where the companies should be valued. For example, in order to pinpoint where companies ought to be valued and fundamentally i would expect that over the long haul our business will continue to be a mix of both internally generated innovation and externally sourced innovation. Well, im going to go back to a source of that innovation which is sort of your genetics driven rnd. You discovered a gene that lowers peoples risk of having a heart attack. How quickly can you translate that discovery into an actual medicine . We hope very quickly, but the big picture here is that amgen is profoundly aligned the idea that human genetics offer a revolutionary new approach to finding drug targets that matter to help address serious illness, and what youre referring to is an example of that. Potential new pathway to illuminate Heart Disease and potentially a new therapy to address the risk of Heart Disease in society so were moving very quickly and we have to have a molecule that addresses that target in the clinic over the next two years. Well, bob, well have to leave it there. Many more questions for you. Thank you for joining us. Thank you, meg. All right. Back over to you, guys. All right, meg. Thank you very much. On deck, the biggest winners and the biggestlousers among all the retail names lately. Some. Names may surprise you. Plus, a minneapolis man suing the tsa. If he wins, it could open the airport lawsuit glad gates, and would that keep you safer . That story still ahead. Trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. The first stock index musicwas createdughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Welcome back to power lunch. Im michelle carusocabrera. Pope mao renewing his ban on assault weapons in the wake of the countrys deadliest shooting in u. S. History. Lets get to Cnbcs John Harwood with more. Reporter michelle, he did renew that call for renewal or the revival of the assault weapons ban that was passed during the Clinton Administration and then was expired and was not renewed. He also updated americans on to the investigation into the orlando shooting saying that the evidence points to a shooter who was selfradicalized, not inspired not directed by any foreign terrorist group. He recounted some progress that the United States had made in reclaiming territory from isis, but the heart of his response was a denunciation, strong denunciation of donald trump, without mentioning trumps name he called it unamerican the way donald trump has reacted to terrorism with a focus on muslims broadly rather than on terrorists specifically. We now have proposals from the presumptive nominee for the president of the United States to bar all muslims from entering america. We hear language that singles out immigrants and suggests entire religious communities are complicit in violence. Where does this stop . Now, the president went on to mock the notion repeated by donald trump over the last few days that his failure to say the words radical islam somehow contributed to the problem or americas inability to stop problem. He said in fact he was careful in his language to avoid aiding muslims in recruiting disaffected people by portraying the idea that america is at war with an entire religion. This also represented the president s response to the suggestion that donald trump made publicly yesterday that president obama himself might be sympathetic or somehow complicit. Donald trump saying hes not tough or not smarter or maybe he has Something Else in mind. Powerful response to president obama today from those suggestions. I just checked Donald Trumps twitter feed before coming on air. No response from donald trump yet but ill be shocked if we dont have one in the next couple of hours. Keep us posted. Thanks. John harwood in d. C. Defense stocks did make a move to session highs as the president spoke. Lockheed martin is up by half a percent. Raytheon is seeing a slight bump. The intraday is what you need to focus on and enin terms of Northrop Grumman thats higher by a third of a percent. Lets bring in clark irvin, former Inspector General and department of Homeland Security under president george w. Bush. Good to have you here. Thank you very much. I dont know if you heard the president speak earlier and certainly heard john harwood. The president used his speech to fight back to fight back on the notion that he doesnt take the threat against america seriously enough. He absolutely does and i think the president was very, very clear on that. He pointed out that it would come as a surprise to the terrorists who have been taken off the battlefield by the United States thaurg the Bush Administration and the Obama Administration that the president and the administration does not take the threat seriously enough and i have to underscore what john said. The president was at his most impassioned on this notion that somehow using the phrase radical islam is an antidote to trip. Anything to suggest that were at war with the entire religion is exactly what isis wants. Its this tiny minority of muslims who are perverting that religion in killing in the name of islam with whom were at war the department of Homeland Security was founded in the wake of september 11. It was a very different attack we suffered in orlando. A largescale coordinated attack and now weve seen more than one case of individuals or very small groups of people, man and his wife, attacking the United States. Is the department of homeland structured in a way that can help stop terrorism, this new kind of terrorism that were facing, especially when its meant to deal with immigration. This guy was an immigrant. Its a question of less of government structure than the nature of trip. As you say, were in a different world. We have a new normal. As catastrophic as attacks like 9 11 can be, if theres any good news its because they have such a large scale they are very difficult to carry out. Now, in my judgment terrorism has become normalized and randomized meaning it can happen any time anywhere against any target. We have here for the second time a terror attack on a soft target, in this instance a nightclub, a terror attack in a city like orlando that unlike new york or washington is not considered to be in terrorist cross hays and bus this particular individual was radicalized online in the anonymity of his home its very difficult. In fact, its impossible to stop this 100 of the time as the president said. Its very, very difficult environment wherein it requires the help of every american. What about the threat of domestic terrorism . This guy said something about isis. May never have had anything to do with isis. Search of the worst ten mass killings in American History had nothing to do with islam or muslim religion or anything. People pissed off about something and they go and want to kill somebody else. We may find out this guy was pissed off and this was an antilbgt crime. How do we got domestic terrorism, really home grown stuff . Excellent point and no question all kinds of motivations, mental instability, hate crimes, prejudice on the base of race or ethnicity or Sexual Orientation and we dont give much attention to crimes motivated by those motivations as we do the kind of terror attacks that are motivated at least in part by some religion perversion so its important the consequence. More important the consequence than the motivation and weve got to understand that every american has a role to play here in unifying the country and doing our part, as i say, to help our counterterrorism and Law Enforcement. Youve said that a couple of times, and what i havent heard yet here is so what do we do . Does that mean neighbors turning in neighbors, what is this . Let me tell you. When we see signs that someone is motivated by hatred to the point that we think that person might well act on that belief, then its our obligation as american citizens to call that to the attention of Law Enforcement professionals. It is highly likely that anyone who is radicalized by any violent belief will have come into contact with someone who spots that. In fact, in the case of this particular killer, he he was interviewed twice by the fbi, right . He was interviewed tries by the fbi. So. Thats a separate issue. What can the fbi do when there are not indications that the person has moved from violent belief to violent action . Thats a very, very judgment call. I know weve got to go. Michelle brings up an excellent thing. Now all the articles about this guy have his supposed friends or former colleagues, yeah, i knew he was going to do something and i said something or i didnt Say Something or i should have said something. When do we know to Say Something and who do we Say Something to . If you come across somebody thats spewing hate and making threats that you would perceive as valid. Right. What do you do becau