♪ >> it is not bad news and good news anymore. it is bad news reflecting really painful couple of months ahead. >> political risk has been a persistent thing since 2021. >> all of the signs of able market at play. >> the reflation trade has legs because i think it is before the dawn. >> volatility kills confidence. >> this is bloomberg

surveillance with tom keene, jonathan ferro and lisa abramowicz. lisa: good morning. this is "bloomberg surveillance." we are getting earnings. we have jp morgan, wells fargo and now we are getting citigroup and it was a disappointment. we have a tale of 2 wall st. jp morgan and everybody else. fixed income trading revenue lighter than expected after beating on jp morgan, $3.09 billion versus the estimated $3.2 billion. they do plan to resume buybacks but that disappointment in trading clearly weighing on the stock ahead of the open. tom: it is interesting. if you don't want to talk about it, you don't show ratios. ratios are compare and contrast to the hardest security analysis, both wells fargo and jp morgan gave me clarity on their earnings release and i'm

not going to mince words, james fraser, you failed. you gave me single-digit baloney because you are the plan. the only one who knows what is going on is chanel he and she joins us right now. they did not do 24% tangible equities, they are in the land of single-digit failure. >> jp morgan is a tough act to follow and james fraser has not even start the job yet. it is a tough place to start. she has to get over this legal issue. there has been trouble with regulators because of internal controls and these numbers, getting costs under control and making sure they can get past the pandemic. she has a balancing act on her hands. tom: we saw a few days ago fraser saying we are on the edge of james gorman. do we have a fraser strategy when i look at these numbers which are mediocre?

sonali: the consumer strategy is one we are going to wash because they did announce changes to consolidate some of those units. can they compete with morgan stanley that has been growing through acquisition? you are right, that is a question mark. the returns are what they are. lisa: there is a question about whether jp morgan is consolidating its market share in trading aspects and pulling away from some of the other firms. is that what we are seeing right now in citigroup earnings or is there something else? sonali: that fixed income trading number i want to turn back to because you were turning -- talking about consolidating wealth. jp morgan has new leadership there, too. we have a strategy among jp morgan, morgan stanley. this is michael's last earnings report, laying off this transition plan among leadership , something they will be speaking to and also turning the page on some of the competition

with fixed income trading falling below estimates in a banner year where citigroup is one of the top debt underwriters in the world, is disappointing. lisa: we have michael who said, as he left, he wanted this to be a boring bank. what is the profitable model of a boring bank in 2021? sonali: it can never be so boring. if you cut some lines, it must mean had cost somewhere. how do you keep staff energized while you are fighting off some of these demons? lisa: thank you so much. do not be a stranger. right now we are seeing citigroup shares falling down about 1.5%. we will be coming back and digesting more from all of the earnings as she parses through. in the meantime, we have been getting a consensus on wall street that banks are the place to be. asset management, senior advantage for -- senior

investment strategist joining us now. do you see the reflation trade of banks being a sweet spot in 2021 is still the right call? daniel: we do think so. if you look at forward rates for 10 year treasuries, the market is looking for 1.3% over the next year. that is an upward trend, another key driver for value outperformance is and what is happening with commodity prices and oil. there is probably some upside there. it is not going to be a multiyear trend in the same way that you have girls outperforming value for years. now we think momentum is on the value side. tom: thank you so much for joining today in the middle of bank earnings. i know it is inappropriate for angelman from a french bank to talk about american taking -- inappropriate for a gentleman from a french bank to talk about american earnings. have you adjusted your view off of a democratic president, house

and senate? daniel: it is a bit of a plus and minus. everyone is reacting to stimulus and that is what we are seeing reflected in treasury yields. it will be a question of how much president-elect joe biden is able to obtain relative to his proposal but nonetheless, it should be more than what we thought would have been the case one month ago. the markets are enthused about that. we have reduced our allocation for equities from an overweight to neutral perhaps waiting for a better entry point. there is always going to be something upsetting that happens. at some point, we will have a pullback and that will be the better tanning -- the better time to go back to an overweight position. tom: i don't know how you spell that in french but we will go with it. when are you going to get a pullback? people are misogynist, fourth of

july is a holiday in america, they are going off to july in the summer. do you know when the pullback is going to occur? daniel: the most likely trigger that we are cognizant of is going to be something around the pandemic and unfortunately we have plenty of distressing news there. at some point if it accumulates to the point where people start to rethink their forecast either for earnings or for gdp, that could be something to cause things to turn around briefly. tom: too short of a visit. we will do this again. we got some interesting developments for global wall street. mr. morris. sonali has been typing up a storm in earnings. one of the quiet realities that is out there right now is what do they do. bring up a chart on citigroup back in the 1990's. for those of you on radio, it is simple. citigroup up a moonshot for

years. the absolute collapse in spaces. it is unacceptable. on a 10 to one reverse split, this is trading at seven dollars per share and is on the edge of being a penny stock. what is the urgency of crater to get this thing going or to sell the thing to the next person -- the urgency of fraser to get this thing going? sonali: there is a lot of urgency, not to mention, she has been at citigroup for a while. tom: bank of america was here. they fixed it. how does citigroup come like a bank of america with a single digit line on a reverse stocks that is $6.90 per share? sonali: let me give you a challenge for citigroup that bank of america does not have. bank of america is the bank of america. they are the economically strongest region in the world.

citigroup is wrestling with troubles across the road in this pandemic. the question is different strategy-wise because how do they maintain their global reach , compete with jp morgan and fixed income and be the bank to corporations across the globe while achieving value? lisa: citigroup shares down 1.5% ahead of the opening and you have jp morgan shares down .90% which raises the question even though jp morgan had a blowout order and beat expectations, still getting penalized. do the banks trade as a group and not on their own anymore, albeit with gradations given the fact that wells fargo is falling out of bed? sonali: you have a few headwinds plaguing all of the banks. interest income is not looking great. can they create a better picture? we know that buybacks will come back at some point. a lot of that could be priced in by now. that was the big question we are wondering.

citigroup, wells fargo did try to put that in the earnings release but we are not seeing investors bite. tom: i want to come back because i want you to explain, it is great to do this, a window into her life. she is truly multitasking. she's got me barking at her about citigroup. she's got riley in her ear saying sit up straight, and you are also listening to the cfo of jp morgan at the same time? sonali: you had me take jamie dimon out of my ear. tom: we are getting into the sausage right now. they are doing a conference call to people like you. sonali: exactly. before they get to the analysts. tom: how are those calls different? why are they talking to you instead of the analysts? sonali: what i find is that they tend to answer more social questions from the media will they answer russians about the reserve, but they also answer

questions about what does a biden administration mean for them. tom: they do the softball questions now to get them out of the way. sonali: it is the bigger picture questions, the long-term questions that will matter to society and the markets. lisa: yes, the softball ones. tom: are we going to say layoffs in wall street? the calendar is messed up. hockey starting in january, what is that about? there are february bonuses, right? sonali: there are february bonuses. there is also a question of whether they change jobs. do they stay at the sell side? the buy side is ready to hire. they have done pretty well after a banner year. it is not just the jp morgan's of the world. lisa: when you come back, we

will ask you what you are going to have for lunch. i am sure you are going to put everybody on the spot. tom: she is listening to jamie dimon and lisa, you are listening to jon ferro. lisa: it is incredible. tom: we are here. daniel tannebaum, an important interview with oliver wyman. stay with us on radio and television. ritika: president-elect joe biden will go big in his purse -- first piece of legislation. 1.9 trillion dollars for the next relief package. the measures are $400 billion for an edge may, more than $1 trillion in direct spending and money for communities in business. it is expected to attract swift republican opposition, no doubt. president trump plans to live at

his mar-a-lago resort in florida after he leaves the white house. the plan calls for him to fly there the morning of the inauguration. several minutes -- members of his staff are expected to work for him and jared kushner. the world is about to hit a terrifying benchmark. the death toll from the coronavirus is about to surpassed 2 million and there are few expectations for the numbers to start dropping soon. the u.s. leads with almost 390,000 deaths. experts say that with vaccinations, the odds are slim that the outbreak will be controlled before the summer. north korea unveiled a new submarine missile as part of a military package. they have rolled out a number of missiles in recent months. the next step may be to test fire to get president-elect joe biden's attention. many of these new systems have not been proven, that diminishes their value as a deterrent. global news 24 hours a day on

air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta, this is bloomberg.

>> we have been encouraging countries to use what we call

trusted partners. ones that are not going to put a backdoor in, ones that are not going to take advantage of frequent upgrades to infiltrate your systems. once that will not take advantage of the maintenance of your system to infiltrate. tom: i will not mince words. he has been a friend of mr. trump for decades and wilbur ross tested by the president retaken then. the commerce secretary of the united states. there have been actions in the last days of the trump administration and the screaming question will be what will happen in the first days of the biden administration to reverse possibly decisions by the trump administration on china, all of the other trouble spots of the world. expert on this is daniel tannebaum of oliver wyman. he is expert on money laundering

and sanctions. what do you presume you will see by a biden administration as they have in the inbox the last days of the trump administration? daniel: thanks for having me back. we still have five days left in the inbox is filling. the biden administration has to play with the cards left from the trump administration. they cannot start a new with the number of orders done over the last few weeks and months. you are already beginning to see the transition team work plans for how to make with some of the orders especially for the chinese security restrictions put in place since november and rolled out to a lot of confusion over the last few weeks. you will see more refinement of the language and industry outreach to manage the unintended consequences which was similar to how the obama

administration handled these sensitive matters. tom: do these rules of the trump administration have a duration, a timeline, is there a calendar date? daniel: it depends. a number of rules put in place and trying to track, just yesterday there were travel bans put in place on chinese officials from the state department, the chinese national oil producer was added to an export control list will make it difficult for u.s. companies to export equipment or software. there are other rules being rolled out where the commerce secretary ken -- secretary can ban. some of them, like the export control restrictions are immediate, even if the rules do not get written for a few weeks. the biden administration does have an opportunity to amend what has come out but it is yet to be seen how much they will do for fear of trying to look not

weak with respect to china which you would see with the trump administration. lisa: it has been a wild week on a wild year and this story is one of the more important stories that has gotten married. just -- that has gotten buried. just give a list, it includes three of china's biggest telecom firms, top chipmakers, it's biggest social media and gaming players, it's two top smartphone makers, all of their top tech has been lifted as companies that the u.s. will restrict investment into. how big of a deal is this going forward not only with business relations but in terms of trying to handle the biden administration when it comes to negotiating? daniel: it is yet to be seen. the u.s. has used targeted sanctions before with respect to securities and trying to deprive certain industries, countries of u.s. capitol and that happened with russia from 2014 onward. the linkage on the defense

department list is supporting the chinese military, the chinese intelligence regime, may get a closer examination certainly over the last few days we have seen significant companies get added to this list and a substantial amount of confusion. last week we saw one entity reverse a decision to reverse a decision that they list chinese entities which the laws did not actually mandate that they do. i think we will see more tangible guidance into how to actually operationalize this which has flagged -- plagued the global security industry in how do we actually do this without looping around businesses. lisa: meanwhile the trade deficit continues to widen between the u.s. and china and china is about to announce their gdp for 2020. they are expecting to be, by their own projections, the only major global economy that expanded last year, other ones contracted. how much do the economic

pictures of the u.s. and china complicate this? daniel: china has been really trying to counter some of these steps over the last few months. even last week they put out a law to prohibit chinese companies from complying with certain u.s. law and they could seek damages from chinese court. there is certainly hysteria in terms of the u.s.-china dynamic and looking at some of the appointees in the obama administration, you can tell some of the folks will be able to focus keenly on this. it is clear that the u.s.-china debacle is here to stay potentially without some of the knee-jerk reactions like the trump administration has put forth. i think we are going to see more dialogue in the coming years with the new administration for how to enable these two to work together as they clearly need each other. tom: daniel tannebaum, thank you so much. greatly appreciated. too short of a visit.

we see the biden administration unfold with so much. exxon mobil, it is always not good with an sec investigation comes down the pike. exxon mobil reported to be in securities and exchange commission investigation over the permian basin and this has been a really interesting, not only this year, but in the last number of years. this is off of xto energy, the acquisitions and desire of big oil to get into the permian basin. one of the headlines out over one year ago, exxon to cut permian growth by 10%, now they maybe are going to boost their growth with price up. lisa, this goes to the heart of daniel's new map, that is a great primer for this investigation. lisa: there is a question of how do you evaluate the shale, have we reached the peak or are we heading toward even more and how are some of these oil majors evaluating them?

there is a lot of uncertainty about how much more the u.s. has to run with its oil production and it comes as exxon does cut its investing in the permian oil basin. this has been an issue for a long time. how do you evaluate land? tom: part of this is the elasticity and the responsiveness of shale gas to price. it is remarkable how they can come on and come off. jeff curry was really and yesterday. his general statement was texas and the dynamics, they are extraordinary. part of the dynamics, we make jokes about it, but you set yourself up for the next decade with those two oil drums and the negative oil price. lisa: i had to offset it with health considerations for my children. exxon shares down 2.8% after announcing that. this comes after some people

were upgrading exxon on wall street because they are excited to maintain their dividend. split fortune. tom: ed morse at citigroup, jeff curry optimistic on commodities. right now 55, 67 crude. coming up, michael mckee as we look at the economy. this is bloomberg. wanna lose weight and be healthier? it's time for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com.

tom: good morning. "bloomberg surveillance." there has been a jon ferro sighting. the thing that really matters, the pulse of american retail. michael mckee? michael: we have a lot of different numbers coming out. retail sales is the headline and the one coming out most slowly. manufacturing 3.5, down from 4.9. no surprise. final demand is up .3% on the month, year-over-year at .8%. no inflation into the system. retail sales down by .7%.

the forecast was for flat, so it is much worse than forecast. plus, revisions to the prior month for november down 1.7%. originally estimated to be down 1.1%. the retail control group, which is what everybody looks at, is down 1.9%. the forecast was 4.1% gain. here is the bad news. let's see your reaction to this. november revised down from -1.1% to -1.37%. i don't know what people were doing, but not a lot of christmas shopping it appears. lisa: this is a big wow. they looked at the downside surprise and said, did people delay purchases or not buy at all? this suggests people curbed

purchases which suggests a greater deceleration in the economy than previously expected. tom: michael, you are the expert. i want to go to the control group. you will explain what it is. i want to use a dangerous word, unprecedented. i am taking the control group back before the financial crisis. we have three moments down in the lower number. that is unusual. usually it goes down and comes back. that is not happening here. michael: it reflects the fact that pandemic is not going away. experts have been saying we are going to see weak spending as long as people are afraid to go out and spend. that appears to be what is happening now. non-store retailers is the real surprise. people did not shop at home either. nonstore retailers down 5.8%, although they are up 19.2% year-over-year, so more people

did shift to buying on the internet not as many did so in december compared withli home supplies. they are also under residential investment. this is the stuff that goes into gdp as what consumers spent. a big decline in that does suggest a real problem. tom: lisa, i have the control group using the hyper secret michael mckee numbers. if you look back 41 years, this is unprecedented to see the vector of this, persistent decline we see over three months. lisa: it is important this is december.

this is the holiday season. this is when buying should pick up. i am wondering how much this challenges the assumption the services size has been lagging but now so too manufacturing. perhaps we will not be buying as much and we will not see the same strength going forward. michael: i think that is correct, lisa. this report does not take services into account. we have to wait for personal spending numbers at the end of the month. but it does suggest the goods we were buying which had propped up retail sales may be fading as the virus continues to rage. you look at what did not sell. electronics and appliance stores were down 4.9%, off 16% year-over-year. everybody was spending money earlier in the year on home office stuff. i guess now we have all the computers and zoom lights we need, and people are not spending that way anymore.

the traditional stuff in the holiday season, clothing stores were up 2.4%, off 16% on the year. sporting-goods down .8%. general merchandise up 1.2%. department stores off 3.8%. the big one we follow in terms of discretionary spending and the most affected by the pandemic, food services and drinking places down 4.5%. year-over-year, down 21%. that tells me not only was december bad but 2020 was an awful year for that industry. it is unprecedented. lisa: i love how you say people had already bought me thing for home offices. tom and i are thinking of ipods and other devices to occupy our children through the pandemic and quarantine. you are seeing yields go lower. stocks range bound ahead of the open, which raises the question, is bad news bad news? do traders just not care because

ultimately everything will be determined by physical and monetary response --fiscal and monetary response? michael: i think the third is closest. the expectation was for a downside surprise. we knew the virus had taken off. markets are not fazed by this. they know the fed will not be moving interest rates, so we do not need to see much of a change in the bond market. they can go down a little bit because the economy does not support the idea of faster inflation, when you saw the ppi numbers decline. at this point, it is all going to be about what of the biden plan can pass. if we do get a $1400 additional check and we get money for schools and vaccines, we could see a relatively quick rise in some spending. but at this point, it looks like

the virus is still in control. the thing you have to say is this is exactly what the doctors and economists following the doctors predicted. tom: does this change fed policy? michael: it does not. the fed is basically on hold for the year. there's not much more they can do. they will continue to buy. it changes the narrative they might taper. they will continue to keep interest rates at zero. but it is a fiscal situation now. it is up to congress to get something done. lisa: michael mckee, thank you figure updates on the economic data. today a busy day. not only are we getting retail sales a highly disappointing but banks have been reporting earnings. j.p. morgan the leader when it comes to topline earnings-per-share growth, as well as trading revenues. and yet, their shares down 1.4% ahead of the open. wells fargo shares tumbling after disappointing.

as you peruse all the reports, what stands out to you? >> before the reports, we said we would be looking for three things. trading, capital markets momentum, net income dropping, provision speaking. i think we got -- provisions peeking. i think the one key story developing is higher spending. j.p. morgan increased her estimate for investment spending at the december conference, they raised again. wells fargo, everybody has been watching the cost number, that is the big opportunity the next several years. their guidance for cost is higher than consensus expected. net income expectation is lower. that is a negative.

but spending more on investments. citigroup, we have seen the net income guidance, but trading revenue did come in lighter. they are spending on costs related to regulatory issues. blackrock, stellar quarter yesterday. but the fact they said they will be spending more on investments across a lot of different items was a negative take away for investors. tom: do we have too many big banks? >> it might feel like that on a day like today, but the u.s. banking system is still rather fragmented. we have big banks but we still have a number of smaller banks. we think consolidation will be a continuing trend. it is interesting when you look across the banking system. if we look past multiple

decades, in the 1990's, we saw bank branches growing until the crisis. over the past decade or so, we see those branches come in. that is the digital story. we talk about a lot of acceleration in the digital during the pandemic. will that lead to lesser branches? supply not just about the number of banks but the number of actual branches. tom: i mentioned this earlier, the fact that bank of america was on flat on its back and win a hand. what is frazier need to do? >> the number one issue with citi over the past two decades is operating leverage. that has been the focus of investors. if you take a long-term view in

terms of how citigroup was created, it was a lot of different entities brought together. after the financial crisis, they did make efforts to simplify. but it is a more complex organization in terms of the broad footprint. they definitely slimmed down their businesses. they divested the retail brokerage to morgan stanley. they have cut geography and gotten simpler. i think jane needs to continue that journey in terms of more simplification and getting the cost structure right. regulators have indicated that is their frustration with citigroup in terms of risk management and getting that overview together. tom: alison williams, and celebrating a new bloomberg function, modl. i want to bring it to your attention.

modl is a whole new financial analysis with the leadership of alison williams. coming up, barry ritholtz will join us on the state of investments given washington. on bloomberg radio come on bloomberg television, stay with us. good morning. ♪ >> president biden has unveiled a coronavirus relief plan. the question is, will the price tag be too high for republicans? the president-elect campaigned as a dealmaker and is hoping to get some republican support for his plan. president-elect biden calls the vaccination effort a dismal failure and has outlined plans for an immunization program. he is asking for more money for

testing, contact tracing, and help schools reopen. they want to distribute 100 money shots in the first 100 days. nancy pelosi and mitch mcconnell are silent about what is next in the impeachment process. pelosi has not said when she will send the article of impeachment to the senate. mcconnell is not talking. democrats will be in charge of the senate, meaning they will be handling the trial of president trump after he leaves office. in china, the central bank says they are not clear how far they need to go to make beijing happy. that was days away from the ipo in november when the government abruptly halted the process. prime minister boris johnson faces a threat to his leadership from rebels in his conservative party. they are demanding a clear path after the economically damaging lock down. steve baker said in a letter to

conservative colleagues it is a disaster if pandemic restrictions last until spring. global news 24 hours a day. i am right it could go got -- i am ritika gupta. this is bloomberg. ♪

>> a little inflation right now

would be a welcome thing. we came through a 10 year expansion where we could not get inflation up to target. i am more confident now with the new framework review we released in august and the support we are giving that we will get inflation up to 2%. i am not at all worried there is this run-up in inflation around the corner that will lead to preemptively -- that we will need to preemptively stave off. lisa: that was mary daly talking about the risk skewed to under inflating. henry mcveigh joining us to talk about what he sees going forward at a time when people are taking a pause on the rotation trade as they look at the stimulus plan proposed by biden last night and what will get past. -- passed.

team "surveillance" will wire us up to barry ritholtz. we've got a ways to go. i think i have to go to europe in a couple of minutes. 30, 41, opens at 90, gets up to 137, calms down. the specs in all of that, how do you frame the internet mania wrapped around tech? is it manufactured hype or real? >> there is a continuum. bitcoin is the poster child for pure speculation. tesla has some great fundamental underlying technologies but a lot of speculation in that. you work your way down the speculative ladder. the problem with spac's is they

follow sturgeon's law which is 90% of everything is crop. -- crap. if you can get into a martin franklin spac or a bill ackman spac, the odds are tilted slightly in your favor. but look at how many spac's came out and how poorly they performed. you have to be very selective. tom: is this the fleecing of retail because they are not codified off of securities at 33 and 34? >> there is a great backdoor around that. give us your money for a venture to be determined later reminds a little of the south sea bubble. that is why you have to go to people who have a track record who have done this before. social capital has done a number of home runs. they seem to be good at identifying things with hidden

value. on the other hand, was it like 200 spac's last year? tom: yeah. >> the genius of any of these new or revamped asset classes is they identify a market inefficiency. and the first few get to profit from that. they find alpha. but when everybody else piles into the space, that inefficiency gets arbitraged away and there is no more upside left. it is like the old days when someone would find a little bit of gold in that stream, it was great for the first two. for the 100th guy that shows up, it is all pebbles and fish poop. that is not how you make money consistently. tom: right now, maria tadeo in

brussels. the netherlands is not the netherlands you and i know. it is a dominant, prosperous economy. is it propping up because of the weaknesses of france? their government has collapsed. why? >> the government is over. to cut a complex story short, payments were given in child care subsidies that the state said they had to repay. it forced families who needed the money to repay money they should not have. this is now being portrayed as the state going after weak families at a time they needed help. it is not acceptable for a large part of the dutch society. that is why the government is down. tom: there will be a new election. he is very popular, i believe. compare and contrast italian chaos with dutch chaos. >> this is totally different.

mark ruda is doing this because he know he is seen as the poster child almost for liberal policies that work and are effective. he is saying i accept this was not right and taking responsibility. he is doing this because he wants to move from the scandal and focus on coronavirus. he knows he will be judged on the handling of coronavirus. that is where the focus is going. he looks like the person who did the right thing to focus on what matters for the election. this is about a political system that is very difficult to understand at times that has a different fundamental system in which the parties are breaking down. conte was never voted into office. tom: is the netherlands upset

they are not part of g7? are they surprised they are removed from g7? >> to some extent, they know that they are rich and work well, but they are aware they are a small country. they note to some extent, their powder comes from the alliance they are able to make with germany and other countries. they are aware they are not g7. space has been left by the u.k.. they say we are the country that is liberal and about trade and effective when it comes to the economy. tom: thank you, maria tadeo on the netherlands. i sit here wired up to the bloomberg world. this is not easy. we have a control room. most of them like to take off

friday. i think they are like two people in there or something. they wire us up, we go to barry ritholtz and wonder over -- wonder over to maria tadeo with the netherlands. that is pretty cool. dow futures -194. i don't want to oversell this. the vix is up, but it has the friday feel. maybe the nation needs a three-day weekend feel. that is where we are on a january weekend with honor to martin luther king on monday. oil gives me nothing. 55.48. gold, 1830. that is interesting as well. i have to leave you on radio and television. al from new jersey emails in and

says i have not heard enough on bitcoin. bitcoin, what can you say? 37,000 $555 on bitcoin -- $ 37,555. david westin with the gentleman from honeywell. this is bloomberg. ♪

[opening bell] lisa: i am lisa abramowicz in for jonathan ferro. we begin with the big issue. big banks unofficially kicking off earnings season and trading lower following quarterly results. financials struggling to justify outperformance in 2021 despite bottom line beats across the board. >> the market not liking any of them. shares of all three are lower in premarket trading. wells fargo taking the biggest hit, down more than 4% ahead of the opening bell. citibank and j.p. morgan down about 2% each. let's begin with j.p. morgan because it is lower despite the fact it was a record quarterly profit. generated $12.1 billion. a 37% jump in