. >> my top three picks for 2024 are citigroup, citigroup, and citigroup.d either consider citigroup a three ring circus or you could view it as three connecting circles like a three circle venn diagram and i choose the latter. the first circle is their simplification, delayering management from 13 years, 13 from the bottom to the top ceo dr. eight -- ceo down to eight. they are eliminating two intercompany lines of business, they are organizing along five lines of business, that said. that's kind of -- that's it. that's kind of remember one. ring number two would be there transformation where they are finally modernizing their back-office technology and some of this is regulatory driven. the third ring are these business eggs retrading for fortune and nine other u.s. businesses -- retreating from 13 and nine other u.s. businesses. i am saying it turns out well enough for this stock to double over the next three years. >> we kind of know where james frazier has been trying to. this is going to be a slimmer company than what it was here. does not automatical

. >> top three picks or 2024 are citigroup, citigroup, and citigroup. either consider it a three ring circus or view it as three connecting circles like gave in diagram. the first circle -- like a venn diagram. 13 layers from the bottom to the top, they are eliminating two intercompany lines of business. they are organizing along five lines of business and that is it. that is ring number one. ring number two would be their transformation, where they are finally modernizing their back-office technology. it is stuff that other banks are doing. the third ring, in retreating from 14 non-us markets, you take the three circles together and have the biggest restructuring at citigroup in modern history. i'm saying it will turn out well enough for the stock to double in the next three years. >> we kind of know what jean fraser has been trying to do, does it automatically translate into better profitability? >> i think the bottom line is that citigroup is to be -- becoming a much more simple and profitable firm whose earnings should double over the next three yea

. >> you might have a citigroup believer on the other end of the desk. brendawe are pleased with the hear jamie dimon's cautious comments because we've heard that over and over again. >> what did you make of jpmorgan and bank of america, our results would have been this. is that meaningful to you as an investor? >> it's part of business in the current environment. it's known. it's a function of the banking crisis. we can move on and move forward and that is our only exposure to banks is jpmorgan. >> jim, you own citigroup. a revenue miss. not dler if that's comparable to estimates. my good friend, a litany of charges. >> it's expected because the stock trades at a 60% discount -- excuse me, 40% discount. the street already understands it has to get knocked down by charges and frankly the size of the charges are minuscule so that if you actually got citigroup up to tangible book value, maybe up to 40%. joe, i hear what you're saying and i don't argue against it. i've tried to recharacterize this. i don't want to say citigroup is competing with jpmorgan. t

can citigroup catch up? >> that is one of her key hopes.interesting last week, she was really hard on that business. she acknowledged it was not where they wanted it to be. it has not produced the returns they expected. they came out with some interesting data where, when jane fraser took the reins, that business was one of their best returns. now it has really gone down. they did bring in a senior person from bank of america. he led merrill lynch for many years. that's a good hire for jane fraser, but it remains to be seen whether or not a hire is enough. does citigroup have the goods to produce what morgan stanley and bank of america have long had? kriti: their price-to-book ratio has long been suffering, so they have a long way to improve. some might argue being at the bottom means you only have up to go. we appreciate that analysis this morning. stick with us. this is bloomberg. ♪ kriti: welcome back to "daybreak: europe." it is a question yet again between the markets and the federal reserve. take a look at what markets are pricing rig

tom: 41 up to 53 on citigroup.asize their and all of the tumult and turmoil is jane fraser, the execution of this on lexington avenue. i am fascinated by the immense pressure to get going and then ken leon saying your name iteris not that easy. -- saying it is not that easy. jonathan: we have so much more to come, ppi data but 8:30 a.m. with mohammed al arian. a must watch conversation. what is the big take away from this morning? sonali: citigroup wants to shave off tens of thousands and medium-term she's thinking 180,000. this will be a much smaller bank to tom's point and if you look throughout the begich system, the margin at which jp morgan is remarkable. they brought in 10 billion the bank of america alone. tom: the shift from what ken leon said but bny mellon, i can't frame that culturally in new york. sonali: this will be a smaller bank with more defined business lines of more accountability for everyone. jonathan: an excellent take away. we will have more from sonali through the day. in your equity market

session yesterday citigroup shares fell by a significant margin.particular stock move was tied to a filing. they are setting aside $1.3 billion with risk associated with russia and argentina. >> this is what investors don't like about citigroup. it has operations in over 160 countries. citigroup has exposure to anything happening anywhere in the world. they have operations in argentina. after the country devalued the peso that month -- last month, citigroup says that will hurt their revenue on the basis of currency translations. nothing materially changed about their operations but on the currency valuation bases it will hurt operations. similarly with russia. for a long time they have said since the war broke out that they would like to wind down those operations. it has taken them longer than anticipated. some stuff they won't be able to get out of. with the ruble doing what it is doing against the dollar, that will hurt the revenues they make from that business. kriti: it is interesting they are having this divorce affect two years into the war.

the revenue, there's the problem with citigroup. stock, we'll see how it discuss, but it -- how it does, 17.4 billion on the revenue, and the street was looking for 18.4 billion. citigroup numbers cross, bank of america conference call was underway, so that's another stock to watch as the analysts get a chance to pepper the cfo with some questions there. so that's underway. again, the earnings per share a beat, but a miss for citigroup, again, on that revenue picture. if a lot of the numbers are still crossing, maria, but, you know, there's a lot of chargeoffs in this report, and at this point, and this is kind of what we saw with bofa, they've got $1.8 billion in losses because of a slew of charge-offs. it's going to be going back to that fdic replenishment story, and this is something that the analysts were kind of looking at all of the banks for to see how they were going to adjust that. those are the citi numbers right now. maria, i'm sure you can agree with me on that a one. maria: yeah. there's adjusted and then there's unadju

citigroup has had a discount almost 50% for quite some time. that has been the market's way of saying we expect write-offs coming. we know citigroup has restructured the international businesses over the last two and a half years. these were expected and the size doesn't faze me at all. i do actually find this as a buying opportunity right now in citigroup. >> brenda, you're underweight financials. you own jpmorgan and black rock. >> we do. i think in earnings season we're going to hear some hopefulness probably about capital markets starting to turn up, although i don't think they did during the fourth quarter but hopefulness what's to come. the banks that have exposure to wealth management will have a nice boost in the assets growing, so i think there will be bright spots or hopefulness in some of the earnings reports. we've maintained an underweight position. we've had a nice move in the banks. and if we look at their sweet spot, the bread and butter, it's moved on to the private market. we are propositioned weekly or more with managers, wit

number two was actually citigroup, and citigroup is dropping by tens of thousands in headcount.the divergence between jp morgan's hiring versus the rest of the banks is stark -- bank of america, citigroup and wells fargo are all dropping in headcount. compensation costs rising even with less headcount. it shows you the conundrum of these banks to compete on talents today. jon: yes, it is helpful to point out some of those differences. exist one comparison that is worth making if we are talking about the size and scale of jp morgan, is that you have the head of the largest canadian bank, rbc, speaking to bloomberg in davos, and he also indicated that there is a willingness on his behalf to expand into the wall street business, into the capital markets. so while all the big banks obviously, are doing with different realities, when you are the biggest in this case of jp morgan or canada royal bank, there is possibly an opportunity to expand. sonali: certainly is. i don't know if you saw this, royal bank of canada had made an impressive showing on the lead tables last year, getting

take citigroup. the ratio will be between 3.5 and 4%. j.p..5%, so that gives you a basis of what they are expecting to lose. as they expect to maintain their competitiveness into this market. listen, guys, it is only less than a billion dollars here. their costs are rising at a greater margin. again, they are making money on loans, making money in this market and willing to take some losses off of it. guy: allison, what is your take away, the similarities and differences here? christa: the key thing we are seeing is expectations coming in solidly across the line. net interest on a core basis, operating expenses being on with the targets. as sonali mentioned, bank of america and city will get that in a moment, but the banks are adjusting their expectations to the forward curve, which as we know is factoring in rate cuts for the year. what is key in our view is car loan growth -- card loan growth. this is benefiting j.p. morgan, citigroup, bank of america and wells fargo, but in smaller businesses for those companies. that's a business where ca

and citigroup, i think the picture on citigroup that they could make today in credit card debt is still and somehow at citigroup because half of it or 45% of it from the private wealth management unit that the current card debt is somehow safer and less charge-off and cost-cutting in summer than others. and if you can consider eight to 11% in aggregate and this is revenue this is about cost-cutting for everyplace that's not a great way to start the year. maria: really interesting, great encapsulation of what were get hear from each bank this week when we spoke with jamie dimon, we acknowledged were over earning on nii net interest income, there over earning. >> they made some really fantastic moves very different from the other banks they did not pile into billions of dollars worth of long-duration debt, bank of america they did the opposite. the thing going forward, granite j.p. morgan can keep over earning and execute that is great but if you want to look at a dog that might get better over the year, bank of america with the net interest margin start to trough out there can earn, j.p.

>> he loves citigroup.s one major individual story because they are in the middle of a big turnaround. we know they have started to put inklings out in terms of how deep the pan can go in terms of reorganization, potential job cuts, severance pay. they will get more color around the turnaround story and also potential drivers for competition. the new structure works is it is rolled up into an interim head of banking that then has a number of people focused on different investment banking lens under him. what is the strategy to bring new money in? for citigroup, they have leaned on the treasury and trade is nasa's that have been expanding beyond expectations for jane fraser but what about the core businesses? how do they perform in the new era of citigroup? guy: a lot of heavy lifting to be done. busy week coming up. thank you very much. this is what the markets look like. crude is up that fading off an earlier move. blood plasma company down pretty hard. this is the story that came out a little earlier. we

would jp morgan guiding to less than 3.5% and the charge-off rates was citigroup saying they could gos high as 4% and we have a bunch of regional banks and cards coming out. how much is credit quality weakening this year?it looks like they're going past pre-pandemic levels. stephen: yes. the so-called normalization, i think we are passed that in terms of where we were pre-pandemic. yes, it is a solid concern in the differential is angrily the book of business what were seeing the most weaknesses in credit cards and in the lower or middle income spectrum as well. people have been having paying off bills, given where inflation is, given the rising cost of living, food, fuel, so forth, so it comes down to the book of business. jp morgan has a higher income consumer and a better base of business density bank and that is why you are seeing that differential. sonali: is there peak nii given that consumers are so extended on the credit cards already? stephen: well, no, i think the good news is most banks have provided pretty generously to law's provisions in filling the reserves in the last

jpmorgan, citigroup group, bofa, wells fargo all slipping although citigroup managing to turn it around, up 1%. we're going to dig into these reports, but first, let's talk about blackrock's earnings. the biggest asset management firm in the world posting strong fourth quarter numbers and announcing a $12 billion acquisition of global infrastructure partners. it wraps up an historic week on wall street as the sec finally approved the long-awaited spot bitcoin etfs for 11 firms including brach rock. by the way, they officially began trading yesterday and on day one i saw $4.6 billion in volume pile in. remarkable. so who better to talk about this than blackrock see owe larry fink himself who is here to break it all down can be with our charlie twos prix know? charlie, take it away. >> i'm a little nervous. i'm in liz's chair, but i think we'll get through it. >> you like it? >> yes. [laughter] it's very comfortable. not too comfortable, she's back monday. great day for you guys -- >> thank you. >> big deal. >> yeah. >> you know, $10 trillion in assets, i'm going to ask you about that in

a big lineup to talk about the potential impact of the decision. >>> citigroup -- it is funny.we go right back to citi group. fourth quarter charges coming in higher than expected. we will tell you what it could mean for tomorrow's quarterly results. when you look at citi, divide it by ten. >>> plus, key inflation data on the way. we get the december cpi at 8:30 a.m. eastern. we will tell you what it could mean for the fed. it is thursday, january 11th, 2024. the first day of the rest of pampliano's life. "squawk box" begins right now. >>> good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. here we are. it's thursday morning. let's look at where the u.s. equity futures stand. things are quiet. dow futures are down by less than a point. s&p up five. the nasdaq, which has had a good run, is up 6

thursday was the busiest session in three months for the citigroup -- busy session in three months.itigroup's tyler dixon describes the hot year in sales. >> with rates where they are, with spreads where they are, and with pricing acting the way it is working right now, we are seeing primary new issues come through secondary prices, that is going to pull forward a calendar that is going to make sure that the first quarter is very busy on tcm. sonali: let's bring in the perfect panel. maureen o'connor, wells fargo head of high-grade gets in cap. maureen, set the state chair. that cap set by wells fargo, we might have broken it. how can this exuberance continue in the investment-grade market? >> i mean, at this point it feels like the floodgates are open. all of the stars have aligned in january as far as investment-grade market technicals are concerned. we have this environment to where you had really frothy returns right at the end of the year that broad and all of this new cash into the system. all of these total rate-of- return accounts have been chasing very strong performance th

we have bank earnings, citigroup, bank of america, j.p. morgan and now i'm forgetting someone.have unitedhealth and delta air lines in what they say about the last quarter but what they're saying about the rest of the year to determine where the market goes from here. >> let's talk about they're down stock downward and 5% of what soured investors. >> it was a tough start apple is in danger of losing the most valuable company of microsoft and the problem seems to be the lack of growth and innovation seem to be catching up with the apple that we highlighted in the barron's cover story barclays analyst downgraded the stock this past week and the potential weakness in iphone sales this year end the stock frankly being down this past week is not cheap trading nearly 30 times the current year earnings estimate and earnings may grow about 7% this year on about 3% growth in revenue. that is not all that great. jack: that the pd for the stock only growing 7%. >> the bull case it is a phenomenal ecosystem about a billion users and warren buffett and brookshire hathaway is the biggest hol

. >> exactly but when you go stock by stock, citigroup, which we rolled out jpmorgan to put into citigroup, that's massively outperformed. i don't think you need to own jpmorgan and bank of america in similar sizes but in a tacticful portfolio, if you own bank of america, citigroup and goldman, those should be your core in financials. oh, by the way, the numbers are going to beat. they're going to beat their numbers because they've overreserved and increase their dividends and balance sheets are strong. >> that was the point i was going to make. shift, even to a lesser extent in regional banks. i think one of the things we look at is what drives the earnings for financials? and a lot of it is driven by provisioning or lack thereof for loan bosses. and if the economy is better than we anticipated then there should be less charge-off from a loan perspective. and those provisions may be able to be unwound and could be added from an earnings perspective. on the regional bank side, i think the emphasis on commercial real estate is real and warranted. however, i think they're called regional ban

we have bank earnings, citigroup, bank of america, j.p. morgan and now i'm forgetting someone.ve unitedhealth and delta air lines in what they say about the last quarter but what they're saying about the rest of the year to determine where the market goes from here. >> let's talk about they're down stock downward and 5% of what soured investors. >> it was a tough start apple is in danger of losing the most valuable company of microsoft and the problem seems to be the lack of growth and innovation seem to be catching up with the apple that we highlighted in the barron's cover story barclays analyst downgraded the stock this past week and the potential weakness in iphone sales this year end the stock frankly being down this past week is not cheap trading nearly 30 times the current year earnings estimate and earnings may grow about 7% this year on about 3% growth in revenue. that is not all that great. jack: that the pd for the stock only growing 7%. >> the bull case it is a phenomenal ecosystem about a billion users and warren buffett and brookshire hathaway is the biggest holde

we're waiting on citigroup. they'll report at 8:00 a.m. eastern.walk us through these numbers, ken. how do you read the jp morgan quarter first? >> it's great to be here and i think for jp morgan it's all about quality. that shows in the return of capital and the underlying businesses are still very stable and poised for really growth in 2024. court quarter was a messy quarter because of one-time charges. bunch of categories but for jp morgan it's just contributing back to the fdic for the bank problems. overall, loan quality is still good. and also when we look at the investment banking it's not going to be v-shaped in the first quarter if you will this year but we're going to see healthy growth in investment banking fees and underwriting and m&a in '24. maria: i'm glad you mentioned the sloppiness or the messy quarter because when you look at the jp morgan quarter on an adjusted basis versus an unadjusted basis, this is a very different situation. are you looking at the adjusted number of $3.97 a share? or are you looking at unad justed, which is

mark, thank you very much for being here, for hosting us here at the citigroup headquarters.et right into it. you said in today's call, quote, we are not satisfied with the performance and returns in our business is. therefore we are laser focused on executing against our strategy, simplifying the organization, and right sizing expense base. how confident are you like you will be able to achieve that all? >> first of all, leslie, thank you for joining us here at headquarters today. today was a very important day. we announced earnings. to answer your question, i am very confident about achieving it all. i am confident about it because we set a new strategy and invest today to be the preeminent partner for institutional clients to be a leader in wealth. to be a valued player for u.s. personal banking and our customers here in the west. and we are making great progress on that. i was disappointed in the quarter, but i really want to talk about, we think about, the quarter in the context of a 12 year. we have made significant progress throughout 2023 and we are well positioned t

we got warnings from jefferies group and also citigroup on trading revenue.ad strokes is tomorrow going to be a positive or negative day for the banks? >> it is great to be here. there is a lot of cleanup, a lot of one-time charges we saw was citigroup pre-releasing that for the fourth quarter of 2023, but market investors are forward-looking and we think we will see validation that the u.s. economy will have a soft landing. there will be loan growth but it will moderate, and importantly on the dark side for banks that will be less of a conversation as it relates to credit risks or the risks that there will be significant loan write-offs, so putting that in the backdrop, the opportunity in 2024 is to see some upturn, although perhaps not early in 2024 four investment banking, and also the durable businesses of asset management doing fine. it is up to analysts to sort through what is important. overall, the economy looks fun. there are expectations on earnings that are low, so there is room to do better, but the real conversation which will be more subtle is t

citigroup alluding to that test one of the reasons why conceding pullback that seems to have materializedn 2024. is that the feeling or broadly among strategist? j.p.: absolutely. if you look at some trend and momentum indicators, everything was green at years end and so bullish on momentum. there was positioning and repositioning going on. there was a big portion of the field that helped markets rally in november and december. everybody was surprised. and you had the change in the right outlook. positioning has not been super stretched, but it is very long. the dip we are now seeing building up is a novel. if you look at statistics, over the past 20 years, we've only had 40 years or so when the market overbought. if you look at january itself, only one year was negative. guy: health or would you have to go to be oversold? how far could the pendulum swing the other way? j.p.: i would not be surprised if you saw minus 7% as below. it is normal given that people have taken money off the table. if you want part of the rally in november or december, no argument against that. a lot will depend

the citigroup cfo will be on closing bell tomorrow in a cnbc exclusive. earnings coming out today, jason goldberg, barclays senior equity analyst. let's talk about citi, with the news that came out. the charges will be higher than you were told december 6th. what do you think? >> it is a big company going through a pretty massive restructuring. and certainly there is going to be bumps along the way. i think this is indicative of that. i think it is also shows that typically fourth quarter earnings for banks are messy. and if you look at the top 20 banks, half have already preannounced charges that are going to be results, we could see additional ones. on top of that, the group, the top 20 banks this quarter are paying $13.5 billion to cover the losses tied to the failures of silicon valley and signature bank last year. so it is going to be messy. citi is a $2 trillion plus bank going throw restructuring and bumps along the way. >> overall, we are thinking at least if you look at the expectations from the street, that numbers will improve, we'll see some b

the next to wo hours, we hear fm blackrock and delta airlines and citigroup. new read on inflation and the ppi which is due out at 8:30 a.m. >>> and breaking overnight. the u.s. and uk launching air strikes on houthi rebels in yemen. the price of crude jumping 4%. it is friday, january 12th, 2024. "squawk box" begins right now. >>> good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew is on location this morning in new york. he has some breaking news. andrew, good morning. >>> good morning, becky. we have breaking news. breaking right now. blackrock making the biggest changes to the firm in more than a decade. it is acquiring global infrastructure in a cash deal valued at $12.5 billion. in a memo, larry fink saying the infrastructure deal is one of the fastest growing areas of our industry over the next ten years. the largest asset manager announcing a reorganization. ishares business embedded in blackrock. the changes to the str

jetblue got lucky, they should not appeal and walk away said citigroup. blue in spirit is down 14%.k. lauren: they are down 8%. they are expensive. some are $200. stuart: rural people make a lot of fun of suburbanites who come out. stuart: lauren: guilty as charged. the first earnings results since they went public in october, costs are calling the. management said to be super super honest we underestimated the inflation affects. that's amazing because you hardly ever see them on sale, they are over $100, sometimes more than $200 yet they worry about their margins. stuart: i look forward to seeing somebody dressed wearing birkenstocks. that's a contradiction in clothing styles. lauren: it's more popular in the city. i see a lot of people wearing it. stuart: the white house redesignated the houthis as a terrorist organization. there's a catch. they will be named specially designated global terrorists instead of a foreign terrorist organization. jillian turner at the state department. what's the difference? >> reporter: critics of president biden's foreign policy say there's a big dif

. >>> citigroup shares are popping, up nearly 3%.hat matt bedding mac big, and we will tell you why after the break. you know what's interesting these days? bitcoin. look for bitwise, my friends. all right, sheila, are you throwing a dress like a dad party, a birthday brunch, or a vow renewal for your dogs? yes! the right drinks delivered for any party. drizly. hi, i'm stacey, and i've lost 60 pounds on golo. the right drinks delivered for any party. (guitar music) i was surprised with the golo plan, i was not hungry. thanks to release, i don't feel the need to go for snacks or go back for seconds. give golo a try. this plan works. a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently. >>> coming up next, jpmorgan chase, on close for a record high close. all that, and much more. we will take you inside the market zone. the power goes out and we still have wifi to do our homework. and that's a good thing?

citigroup head of equity strategies. what is the biggest risk going into earnings seasons for the biggest companies ahead of us? beata: the positioning. the biggest risk is the positioning overall in particular for europe does not happen very often, it has gone very stretched. we are almost at a normalized historical highs in terms of positioning. in terms of entering into the earnings season, we think this year will be particularly important and the focus of the investors will be on the eps delivery. many sectors have gone to stretched valuations. even if they can deliver on earnings they can be justified. i think that's rational for delivery is quite high. how much sonali: pressure is there on the bottom lines. . further deceleration of inflation. we are seeing a number of companies not willing or able to meet expectations given the expense line. how much risk is there there? beata: the dynamics of inflation could definitely put pressure. we only see proper margin compression in deeper eps for sessions. the set up for

wells fargo down by 1.5% now citigroup, knee-jerk reaction. of noise in the quarter with special estimates from the fdic and other one-time charges and gains, with every one of tof th bank. get a bigger picture what to anticipate in the economy, too. programming note. speaking with slate of the big bank and financial executives next week from the world economic forum in davos, switzerland. bank of america's brian moynihan, jpmorgan's jamie dimon, blackstone's steve schwartzman, goldman's david solomon and morgan stanleys ted pick. coverage starts tuesday. today speaking later exclusively with brian moynihan coming up at 2:05 eastern time. talk to him about today's results, too. andrew? >> thanks, becky. looking forward to do that interview. >>> news that broke earlier, blackrock announcing its buying global infrastructure partners $12.5 billion in cash and stock. acquisition part of increased focus on infrastructure. saying now one of the most exciting long-term investments he says in terms of opportunities, he says, coming ahead. here's fink

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cet and the citigroup ceo mark mason. >>> do not miss cnbc coverage next week live from the world economicrum in davos, switzerland. that is kicking off on monday, january 15th. that is it for our show. i'm joumanna bercetche. >> i'm silvia amaro. "worldwide exchange" is coming up next. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. hi, i'm jason and i've lost 202 pounds on golo. i was 424 pounds and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. my name i

the tone on citigroup has changed. they are not profitable enough so jane fraser has taken a hatchet. people believe it. at the same time you will see the results from the international business right sizing she's been doing. i do like the citigroup name the black rock name, i know it came up in an earlier discussion, if you have a thesis like i do, commodities bonds and stocks are going to be strong this year. we can argue about are people going to take money out, that misses the overall point, this should be a strong year for the market i won't go into it more than that >> by trimming morgan stanley, that you took that cash and you put it elsewhere the elsewhere is home depot you bought is a new buy. why? >> yes, last week. >> i've been talking about it since december i do think the company set up to do better. which is not terrible but well below the market, because they saw negative same store sales for the last four quarters and you're getting to the end of that and i think of very easy comparisons. if rates do co

to discuss more is tyler dixon, citigroup's head of banking.here has been this big talk about a return of the m&a market in particular. what does the future look like at this point? the pipeline moving forward? is it as significant as people think? tyler: the backdrop is very favorable. we are optimistic about m&a, equity capital markets, and debt capital markets activity. it is early to declare victory. what we like the secondary market conditions. we have spreads and rates and equity prices where we want them to be to create a constructive backdrop. when we talk to corporations, the ceos and boards we are talking to want to take advantage of the market conditions. if they see that continue, we will see more activity. if we see continuation and m&a off the back of the progress in the second half, more technology, more health care more energy deals. we are more excited about clients being prepared to act. sonali: those are a lot of sectors you named. one big question has been the private equity industry. can they get deals done in this environm

and with the financials right now ahead of citigroup quarterly results we are seeing weakness in that. a host of charges the company unveiled ahead of quarterly results. plus bloomberg reporting on the possibility of an upcoming settlement of a trading probe from morgan stanley. we will continue to watch the shares of morgan stanley and citigroup through the trading day as well. sonali: we are going to talk about u.s. inflation data because it accelerated in december as americans paid more for housing and energy. that complicates the bets that the federal reserve will cut interest rates soon. here's how bloomberg top guests reacted. >> cpi coming in hotter than expected. >> already complaining about inflation. saying the cost of doing business is higher. >> that has proven to be very sticky. >> from wage increases to higher interest rates. >> the economy is rebalancing. >> it is not a spread. this is a marathon. >> it still puts us on a downward trajectory. >> we think the fed will not start cutting rates until june. >> they will have to be patient. >> push back the timing of the fed

mike from wells fargo came on and was talking about citigroup saying he expects the shares to doubleoint even cameron dawson she's looking at regionals. buying the dip in banks after a pretty brutal year. tom: i understand the major banks can buy anything. but to cameron's good point, let's go. i've been saying let's go for five or six. it's -- that's been a long time. jonathan: stocks have been going great we have regional banks up by almost 14%. tom: when are they going to merge? scale is the word. lisa: the areas in the room. this is the question around private credit, a private equity. all of these behemoths that have these money pools, tons of investors and lock up capital. how do they compete if they have to pay people big bucks to come in and lead? jonathan: january 12, early february. two names for you to put in the diary the next couple of weeks. constance hunter on this economy looking ahead to fed minutes later this afternoon. this is bloomberg. ♪ the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we jus

banks have, a few years ago, i think it was citigroup, jp morgan and bank of america, all three saidexposure and i think at least citigroup and bank of america made it so sound like ty had no indirect exposure either. hopefully it doesn't spread. hopefully we don't get any of that here. this is a complete meltdown from building too much real estate that nobody wanted. maria: we'll see. jamie dimon is worried about the potential of a recession. we're not out of the woods yet. do you think we are? real quick. >> no. we're slowing down. there's no doubt about it. the question is, how much are we slowing down and we'll get an i inkling from the report of labor about how many jobs we've he created. maria: quincy, thank you for joining. good to see you. thank you. mark, you're with us all morning. we appreciate that. we'll be right back. ♪(song in french)♪ (♪) book in the hotels.com app to find your perfect somewhere. shipstation saves us so much time it makes it really easy and seamless pick an order print everything you need slap the label on ito the box and it's ready to go our cost for

you have got jpmorgan, bank of america, wells fargo, black rock and citigroup.ne of the reports that i think will be interesting is actually b-of-a and wells fargo because b-of-a is more of a traditional bank. they might have weathered the storm in q4 better than others. wells fargo, the earnings expectations year-over-year is a 99% jump. part of that because they had so many legal and regulatory issues a year ago. looks like that might have subsided. are you bullish on any of these names? >> sure. so i do think that the q4 report will likely present a mixed bag where we have more capital markets, oriented banks like jpmorgan and potentially a citigroup doing better because the capital markets did meaningfully better in q4 but i think if we are in an environment of slower growth, slower inflation with short-term interest rates coming down by one percentage point or more that's a favorable environment for finance in general. in fact not only will these megacap banks do pretty well this year we expect but i think a lot of the secondary regional banks could actuall

are busy watching what all of the big wall street players have to say as we get quarterly results, citigroup among them, goldman sachs moving into next week. a lot of the stocks of had a nice run over the last few weeks, the most analysts had -- analysts had comments. sonali: many of those names reporting, i'm not sure how i got myself into this mess. moving into the treasury market, 37 billion auction of 10 year treasury notes. the offering held by have a basis point, stopping a 4.024%. it signals hesitation from traders to pay up ahead of tomorrow's u.s. inflation print. the rates strategist joins us now. how willing the writers to put money to work when we still has its critical economic data ahead? >> we always do, we have said there is a cadence every single month where we have treasury auctions and at the same time you have some the cpr reports and the retail sales report, kind of on the heels of that. traders have to try to determine are we going to take some risks here and buy some of these treasury securities before these data groups and how are we want to manage risk limits when th

charles: citigroup. >> citigroup, others today. we learned how much the charges for the fdic and sipc funds are for these banks. everything, what people are really looking for and what has to happen this season is to talk about and focus on the future. it is all about forward earnings. it's not about what we saw last year. charles: right. which is why guidance is so important with everything. we got a minute to go and that's a lot, little time to cram in a lot of good stuff but i want to get to your investment themes. we talked about this many times, buy quality. you think it is strong balance sheets, strong management, low debt. i think that speaks for itself. i think that really does speak for itself. i was a little surprised oil and gold you see representing opportunities here even with geopolitical risk or despite geopolitical risk. >> two things going in your favor. we have lots of geopolitical risk absolute which helps with gold. we have lots of political risk around oil and availability and supply of demand for oil on both s

citigroup, 20,000 jobs going to be gonety 2026. maybe the old stalwart, jpmorgan, survives this, but, you know, these companies are really getting punished by analysts today. >> well, i think that's right. and i think each one of them has their own unique reasons for it. it's not a macroeconomic phenomenon. the economy's doing fine. we're not seeing major increases in defaults. loan demand remains strong. i think it's kind of unique to some of the bigger banks. but what's really been hot, of course, is the small and mid-sized regional banks. they really got whacked last year during the banking crisis in march, and they've been holding back really since late october they've had a great rally, and i think they continue to do well. i don't view this as a real problem for the stock market or the overall economy. i think these banks have had tremendous runs, and there's some profit take on some disappointing news. cheryl: well, look, bank of america, all of them got a little whacked when it comes to having to reinvest into the fdic fund

morgan, wells fargo and citigroup reported on friday and many more to come of the upcoming week, joiningme said tori found funder and portfolio manager dan niles who had a great 2023, it's great to see you, happy new year end thank you for being here. >> happy new year, great to be here. i know you have pics really get to those i'm getting get your pick on the backdrop, would you expect in economically, markets for 2024. >> is a 2024 could be a challenging one and a volatile one, obviously everybody's coming into this year thinking the fed is going to cut rates starting early potentially as early as march and we're going to get a soft landing or no landing. maria: are we going to see the lag effective 11 rate hikes take effect in the negative way when i interviewed jamie dimon this week he's really skeptical, he things this is a chance of recession this year how do you want to invest around the if in fact markets are pricing in which may not play out. >> to company specific factors or have defense built-in those of the type of pics that i have come if you look at amazon they gain share d

by citigroup. to see some fireworks consider mike mayo with a double on beleaguered citigroup out x number of years. >> let's catch up with the chief global strategist. joining us right now. great to catch up. a two-part story for you. first half volatility second-half rally. it reminds me of some of the outlooks i got last year for 2023. what is it where you think that story could take place? >> i think if you think about where we were at the end of last year where you have a price of perfection. you couldn't get better news the fed would start cutting early you would have a soft landing etc.. i'm not saying that's not all going to come true but at the beginning of this year you are already seeing the market pushback on some of those original expectations. you are seeing economic resilience. i struggle to see what is going to be the catalyst to drive another leg up in the near term. we need to see a pullback as the market starts to question their rate expectations and then as you get towards the m

higher on analyst commentary, a wall street veteran of wells fargo's fields good about the prospects for citigroup. things the stock could double over the next three years. everyone continues to track the story of bitcoin and we will await more details on the etf front. as the currency is climbing, stocks have been gaining ground. that includes microstrategy up today. another 10%. moving the other direction is rivian. a lot of ev related news. fourth quarter deliveries from tesla. those came in stronger than expected. the company trailed china's byd in terms of overall deliveries i the fourth quarter. in the case of rivian, they missed estimates and wall street never likes that kind of development. shares down 10%. sonali: we are going to talk more about the commodity soil. -- 20 story. oil is paring its gains. attacks on merchant ships have led to the rerouting of everything from container ships to gas carriers. as discussed those risks. take you for joining us today. any energy we did see this spike higher and no lower once again. how are traders factoring in the grave threats we are seeing in t

morgan, wells fargo and citigroup reported on friday and many more to come of the upcoming week, joining found funder and portfolio manager dan niles who had a great 2023, it's great to see you, happy new year end thank you for being here. >> happy new year, great to be here. i know you have pics really get to those i'm getting get your pick on the backdrop, would you expect in economically, markets for 2024. >> is a 2024 could be a challenging one and a volatile one, obviously everybody's coming into this year thinking the fed is going to cut rates starting early potentially as early as march and we're going to get a soft landing or no landing. maria: are we going to see the lag effective 11 rate hikes take effect in the negative way when i interviewed jamie dimon this week he's really skeptical, he things this is a chance of recession this year how do you want to invest around the if in fact markets are pricing in which may not play out. >> to company specific factors or have defense built-in those of the type of pics that i have come if you look at amazon they gain share during a rece

i was looking at citigroup, they were riding on the s&p 500 is moving with their surprise index which how much data is beating estimates when that is going on, the s&p is to, this is a real change from last year when it really meant that the stronger economy sold off good news was bad news now good news is good news. jack: the surprise index is really cool the late great tobias created that is really interesting. if the bullishness is no longer based on what the fed is going to do but based on actual economic strength, does that mean we can get a broader rally in the market? >> we see that broadening out if you look at the top sectors, his comedic agent services to meta and alphabet but it was also energy and financials, you're getting that small caps doing well, this is great, using the broadening and it's what investors want they want strength and a lot of places not just seven stocks. >> next week what are you watching. >> next week the fed meeting, that is a big deal, payroll that's also a big deal but i think the biggest deal is going to be earnings from four of the big six are n

personal deposits are down 5% at citigroup. personal deposits are down 10% at wells-fargo and 31% in the wealth management division of wells-fargo. my point, madam president, is that these actions that are taking place in washington, d.c. have real-life consequences for average, everyday american families on fixed incomes. as a result of this inflation, which is coming down, but the high prices are permanent, people are having to borrow and people are having to raid their savings, and it is clearly a cancer on the american dream. .2, madam president -- point number two, madam president, a months or so ago the congress passed a resolution. it passed here in the senate, for us overwhelmingly, 53-43, and we passed that resolution under the congressional review act. what cdid we do? well, the consumer financial protection bureau, we call it the cfpb, it's where common sense is illegal. common sense, i think -- i know, is illegal at the cfpb. cfpb comes up with these nuggets every week. if you ever want to understand why the america

morgan, wells fargo and citigroup reported on friday and many more to come of the upcoming week, joiningori found funder and portfolio manager dan niles who had a great 2023, it's great to see you, happy new year end thank you for being here. >> happy new year, great to be here. i know you have pics really get to those i'm getting get your pick on the backdrop, would you expect in economically, markets for 2024. >> is a 2024 could be a challenging one and a volatile one, obviously everybody's coming into this year thinking the fed is going to cut rates starting early potentially as early as march and we're going to get a soft landing or no landing. maria: are we going to see the lag effective 11 rate hikes take effect in the negative way when i interviewed jamie dimon this week he's really skeptical, he things this is a chance of recession this year how do you want to invest around the if in fact markets are pricing in which may not play out. >> to company specific factors or have defense built-in those of the type of pics that i have come if you look at amazon they gain share during a r