ECB Walking a Fine Line on the Economy: Miller

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June 5 (Bloomberg) -- Bill Miller, fund manager at Legg Mason, previews today’s European Central Bank decision, examines the state of his investments in Ukraine and Russia, and offers his outlook for the European market and his top investment tips. He speaks with Olivia Sterns on Bloomberg Television’s “The Pulse.”

Bill, thank you for joining us.

Let's start with what you like to see mario draghi do.

It looks like a rate cut is a foregone conclusion.

Do you want to see something more radical?

I would be surprised if he surprised people.

They are trying to walk a fine line and try to bring the economy back.

Longer-term, he would like a lower euro, stronger growth.

He can clearly get a lower euro if he wants it.

It is a question of bringing it about.

Do you think he is too late?

They are probably a little behind the curve.

I don't think that is so bad.

One of the problems is if they get too far ahead of the curve.

I think he has managed it very well.

Talk to me about the ukraine crisis.

How did your bets play out?

We have a high income fund.

They take advantage of dislocation in fixed income markets.

The ukraine bonds that were due in june collapsed to a 40% yield to maturity, even though the imf was clear that they would provide a bridge package to meet the liquidity.

It has worked out well.

How well?

They are pricing about and they will make the payment.

The gap is closed.

What is your outlook on the market in russia?

We actually bought some russian equities.

Which ones?

Right in the middle of this dislocation.

That is for the income fund.

We bought kiwi.

It is up 50% in the past month and a half.

Do expect this to be a long-term play?

We are long-term investors.

The question is all about price and value.

What is your outlook more generally?

We are not invested that much in europe.

We are mainly a u.s. equity investor.

Most of the assets are in the u.s. we are looking at targets of opportunity in europe.

We bought fiat late last fall.

That is working out well.

We have a company here in the u k that is a mobile payments company.

Solid is good to hear.

More about fiat.

It has done well since when you bought an.

-- in.

More recently, the stock slumped.

Do you still think the ceo has what it takes?

There was a lot of talk that he is a finance guy, but not necessarily a car guy and that he does not necessarily have the right mix of cars to deliver on the profit targets.

He has done a great job at fiat.

They will be transitioning to a new ceo.

I think the plans are ambitious, especially the plans for alfa romeo in the u.s.. a think the plans for maserati are solid.

The chrysler jeep sales have been continuing to surprise on the upside.

Cash will flip positive and a half or two years.

They do not really need to meet the five-year targets for the stock to do well.

One of my favorite parts of the puzzle is with fiat because they bought chrysler, that means they will be making cheap.

They have a plant in russia.

You will see an italian ceo running ita a company producing former military u.s. vehicles and russia.

That gives me a lot of humor.

The company is changing its business model.

The co-ceo came over from visa.

You can monetize it.

The subscriber base in monetizsese, they are targeting about 200 million subscribers.

The company is worth about 50% more than where it is trading.

The former head of the bundesbank said that there is a divergence where is the u.s. economy is growing.

The recovery seems to be stalling out a bit and i could create volatility.

Are you concerned about that?

Are you looking to play it?

It is really interesting that you mentioned that.

The residual he felt low volatility leads to high volatility.

That happens to be not true, as a matter of them." record.

-- as a matter of them."

This text has been automatically generated. It may not be 100% accurate.

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