美油回吐油价破百预期，科技股领涨纳指涨逾2.5%

A STRONG START TO THE FINAL FULL TRADING WEEK OF SEPTEMBER.

WE ARE KICKING YOU OFF TO THE CLOSING BELL HERE IN THE U.S.. GREEN ON THE SCREEN. THE S&P 500 IS UP. A TECH HEAVY RALLY. THE NASDAQ 100 UP MORE THAN 2.5 PERCENT. ALTHOUGH THIS IS NOT HAPPEN IN A VACUUM. BRENT CRUDE VACCINATOR 100 DOLLARS A BARREL. TRIPLE DIGITS FOR MOST CONSUMERS. ALL EYES AND EARS GLUED TO THE 10 YEAR. 4.69%. ROMAINE: THAT RISK ON FRAME OF MIND GOING BACK TO THE MARKETS. THEY HAD BEEN CONSUMED WITH WORRY ABOUT GOVERNMENT BOND YIELDS.

AND RESURGENT ENERGY PRICES. WE SHOULD POINT OUT THAT THOSE? 'S MIGHT BE DIMINISHED BUT NOT ENTIRELY GONE. STRONG CORPORATE EARNINGS ARE THE MAIN BALLAST. S&P EVALUATION STILL AT THEIR LOWEST IN MONTHS. THE LATEST RALLY STILL VULNERABLE TO ENERGY PRICES. THE CHICAGO FED PRESIDENT ALSO ADDING ANOTHER ASTERISK TO THIS RALLY. HE SAID THE CENTRAL BANK RESPONSE TO PERSISTENT SUPPLY SHOCKS WILL NOT BE PAINLESS. THIS IS WHEN AMERICANS ARE FEELING THE PAIN OF RECORD HIGH DIESEL PRICES.

UNITED NATIONS GENERAL ASSEMBLY AT THE START OF THE WEEK AND THE TRUMP-X TALKS THROUGH THE END OF THE WEEK. ISHARE OF WARNER BROS. SURGING AFTER THEY SETTLED WITH CALIFORNIA AND OTHER STATES. THE CEO JUST MOMENTS AGO TELLING STAFF HE WILL NOT CLOSE THE $100 BILLION DEAL IN JUST A COUPLE OF WEEKS, WHICH WOULD MAKE IT THE THIRD LARGEST STEEL COMPLETED IN THE LAST DECADE AND SECOND-BIGGEST OF THE YEAR. A YEAR THAT IS ALREADY DEFYING EXPECTATIONS AND SETTING RECORD AFTER RECORD.

IT IS A MASSIVE YEAR. CORPORATE DEALMAKING IS INCREDIBLY ACTIVE. ONE OF THE THINGS THIS YEAR IS THE NUMBER OF DEALS THAT WE SEE IN CAPITAL MARKETS. ROMAINE: RECORD DEALMAKING. ONE COMPANY THAT IS AT THE CENTER OF IT ALL. KICKING US OFF IS PRESIDENT AND CEO OF MIZUHO SECURITIES USA. IT LOOKS LIKE THINGS ARE HOLDING UP PRETTY WELL.

AS YOU JUST REPORTED, THE LINES ARE VERY HIGH. THERE HAVE BEEN A LOT OF BIG DEALS. STILL IN A HEALTHY ENVIRONMENT. WHAT WE ARE SEEING. IN RESPECT TO JAPAN. WE TALK ABOUT THE DEALS WE HAVE SEEN. THEY ARE SKEWING THE NUMBERS JUST A BIT. WE ARE SEEING THIS APPETITE. EMBRACING THE FINANCING ON THAT. GIVEN THE CURRENT REGULATORY ENVIRONMENT AND OTHER ISSUES GOING ON.

NO DOUBT IT IS A VERY FAVORABLE REGULATORY ENVIRONMENT. COMPANIES ARE GENERATING A LOT OF REVENUE. THE OUTLOOK FOR THE U.S. ECONOMY IS STILL PRETTY STRONG. I THINK THE INCENTIVES ARE STILL THERE TO INVEST. BAILEY: HOW DO YOU THINK ABOUT THE IMPACT OF THE MIDTERM ELECTIONS? ARE YOU SEEING COMPANIES WANT TO BE ON THE OFFENSIVE FOOTING? JERRY: I HAVE NOT HEARD THAT. BAILEY: ARE THERE AREAS YOU EXPECTED TO SEE RIEP FOR DEALS?

JERRY: I DON'T HAVE A SPECIFIC VIEW ON WHAT INDUSTRY WILL BE MOST RIGHT. WE ARE LOOKING AT THE CROSS-BORDER SIDE. MAYBE THAT IS THE MOST INTERESTING TWIST. ROMAINE: A LOT OF THAT HAS TO DO WITH THE CHANGING NATURE OF THE JAPANESE ECONOMY. WHEN YOU LOOK AT MONETARY POLICY , IS IT IN CONTEST WITH EACH OTHER? JERRY: I DON'T THINK SO. THERE IS A LOT OF REASON FOR THAT. SUPPLY HAS COUNTED QUITE A BIT. THERE HAS BEEN INTERVENTION BY THE TOKYO STOCK EXCHANGE.

CHALLENGING COMPANIES TO BE MORE SHAREHOLDER AWARE. I THINK THE CURRENT GOVERNMENT HAS IDENTIFIED 17 SECTORS THAT ARE CRITICALLY IMPORTANT TO THE JAPANESE ECONOMY. THEY HAVE TARGETED 2.5 TRILLION IN INVESTMENT BOTH PUBLIC AND PRIVATE. I THINK THAT IS CREATING A LOT OF MOMENTUM FOR THE JAPANESE ECONOMY. AND INTERESTED IN INVESTING IN JAPAN. CORPORATE'S IN JAPAN LOOKING OUTSIDE. ROMAINE: THAT IS WHAT I'M CURIOUS ABOUT.

THE NARRATIVE FOR SO MANY YEARS HAS BEEN THAT ALL OF THIS HAS LEFT JAPAN AND IS LOOKING FOR INCENTIVES ELSEWHERE. FINANCIAL INCENTIVES TO KEEP THAT MONEY AT HOME. YOU ARE SEEING U.S. CORPORATIONS GO THERE. SOME OF THESE AI COMPANIES. LOOKING TO TAKE ADVANTAGE OF SOME OF THIS YEN BORROWING. JERRY: IN TERMS OF LOOKING INTO JAPAN FOR INVESTMENT, HOUSEHOLDS IN JAPAN HAVE ABOUT HALF OF THEIR FINANCIAL ASSETS IN CASH. THINK ABOUT 16 TRILLION.

CORPORATE'S HAVE CLOSE TO 2.5 TRILLION IN CASH. BY THE SAME TOKEN U.S. CORPORATE'S ARE CLOSER TO $3 TRILLION. THERE IS LOTS OF OPPORTUNITY. GIVEN THE NEW INITIATIVES FROM THIS ADMINISTRATION. IN JAPAN AND ALSO A DIFFERENT MINDSET. YOU HAVE HAD DEFLATION FOR A LONG TIME. OF ABOUT .5%. THE ECONOMY IS ONLY GOING ABOUT 30%. ROMAINE: I'M CURIOUS ON THAT POINT. NOW THAT WE ARE SEEING JAPANESE YIELDS RISE. IT IS NOT SEEM LIKE MUCH.

IT IS PRETTY MEANINGFUL. THIS IS THE THRESHOLD WHERE WE START TO SEE MORE MONEY? OR GREATER REPATRIATION? JERRY: WE COULD SEE THAT, FOR SURE. WE HAVE NOT HAD 10 YEAR RATES AT THAT RATE IN A LONG TIME. YOU HAVE SHORT RATES. YOU CAN VERY WELL SEE SOME OF THAT. BAILEY: WITHIN JAPAN ARE YOU EXPECTING MORE CONSOLIDATION? YOU HAVE A NUMBER OF AUTOMAKERS. A NUMBER OF COMPANIES. THEY ARE WORKING TO HAVE THIS CROSS POLYMERIZATION.

THIS IS SOMETHING YOU WOULD EXPECT TO SEE RAPIDLY CHANGE OR DOES IT FEEL LIKE A SLOW BURN? JERRY: HOW RAPIDLY THINGS OCCUR? I THINK IT IS HAPPENING. IT HAS BEEN IN PROGRESS FOR A WHILE NOW. IT HAS BEEN AN INITIATIVE. I THINK MOST OF THE JAPANESE CORPORATE'S ARE TAKING IT SERIOUSLY. WE ARE STARTING TO SEE IT IN THE REPORTED EARNINGS. ROMAINE: I AM CURIOUS ABOUT SOME OF THE CURRENCY RISK OUT THERE. THE DOLLAR DEALS COMING INTO THAT SPACE.

IS THAT WORRY YOU AT ALL? JERRY: THE CURRENCY MOVES? IT WAS NOT MANY YEARS AGO. WE WERE SITTING AROUND THAT LEVEL. NOW IT IS HIGHER. I THINK IT IS A FACTOR. I THINK THE WEAKENING OF THE CURRENCY IS CERTAINLY PART OF INFLATION. I THINK THESE THINGS ALL MANIFEST OVER TIME. BAILEY: HOW DO YOU THINK ABOUT THAT? HOW QUICKLY WILL YOU SEE THIS CHANGE IF THE YEN CONTINUES TO CHANGE? HOW DOES THAT IMPACT SOME OF THE HOUSEHOLD SAVINGS THAT PEOPLE HAVE BEEN HOPING TO BE DEPLOYED?

JERRY: I THINK THE CORPORATE'S ARE MOVING FASTER THAN HOUSEHOLDS. THAT IS MY SENSE. WE HAVE A LOT OF ASSET MANAGEMENT COMPANIES LOOKING TO GO INTO JAPAN TO HARNESS SOME OF THIS. I THINK SOME OF THAT WILL CERTAINLY BE KEPT DOMESTICALLY. CERTAINLY A FAIR SHARE WILL LOOK OUT JAPAN AS WELL. ROMAINE: I HAVE TO ASK YOU ABOUT SOME OF THE INTERNATIONAL CONTROLS OUT THERE IN THE FINANCIAL SYSTEM. RIGHT BEFORE WE CAME ON HERE BLOOMBERG REPORTED THE LATEST DEVELOPMENTS IN THIS WORLD.

AND SOME OF THE EXPOSURE THAT BANKS HAVE. MIZUHO BANK NOT NECESSARILY UNDER YOUR PURVIEW. THIS TO THIS HAVING EXPOSURE TO RADIAN. I AM WONDERING WHAT YOU ADD ALL KNOW OR HAVE LEARNED FROM THIS EPISODE? JERRY: I DON'T HAVE ANYTHING TO SAY ON THAT. ROMAINE: HAVE YOU BEEN INVOLVED IN THE DISCUSSIONS? JERRY: NO. ROMAINE: ARE THERE ANY ISSUES AS YOU GROW AND EXPAND INTERNATIONALLY AND THE REST OF THE FINANCIAL WORLD IS SO THAT THE CONTROLS THAT ARE IN PLACE RIGHT NOW ARE ENOUGH TO PROTECT INVESTORS?

JERRY: I HAVE A LOT OF CONFIDENCE IN THE CONTROLS IN PLACE. BAILEY: HOW DO YOU THINK ABOUT THE DEALS THAT HAVE BEEN UNVEILED? HOW SOME OF THIS EXPOSURE HAS COME TO LIGHT? ARE THERE LEARNINGS AS WE SIT HERE? JERRY: DECADES PAST, YOU CAN LEARN A LOT. WHENEVER WE DO A DEAL THAT DOES NOT GO THE WAY WE EXPECT WE SIT BACK AND THINK ABOUT WHAT WE COULD'VE DONE DIFFERENTLY. I THINK EVERY BUSINESS DOES THE SAME THING. I DON'T THINK JAPANESE FIRMS ARE ANY DIFFERENT THAN THE U.S.

FIRMS. ROMAINE: OUT TO WRAP THIS UP WITH THE EVOLUTION OF MIZUHO. OBVIOUSLY THE GREEN HILL DEAL. THAT REALLY CEMENTED YOUR POSITION. MAY BE POTENTIALLY A BIGGER PLAYER. HELPING THE CRAFT THOSE DEALS. WHAT IS NEXT FOR YOU AND WHAT YOU WANT TO SEE WITH THIS BUSINESS? JERRY: IT WILL BE THREE YEARS IN A COUPLE OF MONTHS. THAT HAS BEEN FANTASTIC FOR US. I THINK THIS YEAR WILL BE THE HIGHEST REVENUES EVER. IN TERMS OF ADVISORY.

ONLY SURPASSING LAST YEAR. IT IS NOT JUST ABOUT M&A FOR US. WE HAVE A FULL-SERVICE FIRM. IN THE AMERICAS WE ARE IN CAPITAL MARKETS. WE ARE IN DERIVATIVES. WE ARE IN M&A. WE ARE TOP 10. IT IS NOT JUST ABOUT M&A. THAT IS AN IMPORTANT PART OF WHAT WE DO BUT IT IS ACTUALLY GOING TO BE A MODEST PART OF WHAT WE DO. ROMAINE: WE REALLY APPRECIATE YOU COMING ON. THE PRESIDENT AND CEO OF MIZUHO SECURITIES USA.