eighth anniversary show tomorrow. there is a bull market somewhere. i promise to try to find it. i'm jim cramer, i will see you tomorrow. welcome to "worldwide exchange." a change in tone in brussels, european leaders are giving countries more room to make budget decisions. italy's parliament convenes today for its first time since its inconclusive elections. and china's parliament approves li xichan as vice president as economic growth slows. plus, the fed signs off on most but not all of the capital

banks saying some still have work to do. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. ten straight for the dow, can it be 11? it's already been a historic rally here. if you take fair value into account, we are looking for a slightly negative open. the s&p 500 just shy potentially of those record nominal highs. european markets in the session today, take a look at what's been happening. the ftse mib up fractionally in italy. otherwise, we've seen the ibex lower, the xetra dax, the ftse 100 lower, too. the pause after the rally we've seen is certainly the case in europe today. now take a look at the bond space where we've been watching, for example, what happened in spain and italy. we are generally seeing a rotation out of peripheral debt into some of the more safe haven

markets like treasury. italy and spain, 4.65% and 4.88% respectively. spain's longer term debt auction failed to reach what markets thought it might raise. here is a look at what's been happening in forex. a lot going on. mervyn king making governor last night suggesting that he thought the pound was roughly at fair value. in other words, he's not trying to talk it lower. you can see a sharp reaction in response to the 1.51 level. jack lew is treasury secretary although that's potentially seen as lip service. the dollar/yen, given up 0.1%. the euro is a little firmer on the day. given that we've seen the yen improving a little bit, what impact does that have for us? hi, sixuan. >> thank you, kelly. asian markets lost a bit of momentum in the afternoon

session to end the week on a mixed note. samsung electronics, the technology giant finally took the wraps off a much anticipated galaxy s4, but might have failed to impress markets especially after weeks of speculation over its new features. investors took profit on that stock tumbling 2.6% today. the nikkei, however, managed to close above the 12,500 level while many expect the boj now with deflation governor kuroda to roll out aggressive guidelines in the next meeting. sonny closed at an 11-month high after a ratings upgrade. the in china, the shanghai composite gave back some of its early gains over 1% ending higher by a modest 0.4% after no fresh policy catalyst to lift sentiment. banking shares outperformed on bargain hunting and boosted by

pudong development banks. the hang seng gave back all of its early gains led by industriales and it's down more than 2% on the week. meanwhile, turning negative as beijing announced more reforms over the sector. taking its queues from wall street, australia's asx 200 had its best daily showing as investors swooped in to take up a large cap on the dip. india's sensex in action at the moment showing some weakness now trading lower by 0.5%. back to you. >> okay, sixuan, interesting to see samsung down 2.6% and we will have more on that company's device launch of the galaxy s4 later in the show. first, though, european leaders have hinted they may give more leeway to countries to increase public spending while continuing to reign in budget deficits. the shift towards more pro growth measures stems towards more heightened unemployment in the region. julia, it sounds like leaders

here want it both ways. they want to give more leeway and at the same time give more budget target. is there anything coming out of this meeting? >> everyone has obviously agreed and everybody has one, whatever their viewpoint. we have to combine getting budget consolidation with pushing money into public investment. i think the view, though, is ultimately is germany going be able to sign off on some of these companies more on the deficit? right now, no. we heard that from what they did when they brought their budget forward and they said, look, we're still following the austerity policy. we spoke to them yesterday and they did acknowledge while we are seeing more in the market, the reform process is taking hold. if you want to increase borrowing in order to boost growth, you're going to have a hard time getting that past germany right now. they also highlighted where the election is concerned, it's been a really close call and it's going to come down to a decision in the last two weeks when the election takes place in

september. so these countries want more flexibility and they promise to get more flexibility then there's going be a real disagreement perhaps coming over that. but who knows. i spoke to the president of the european parliament and i asked him about germany's decision to bring forward their budget and what the message was and who in ticket was directed at. listen to what he said. >> this austerity policy alone will never lead to a relaunch. what we need is a combination between budgetary discipline, the spirit of german approach, but on the other hand, strategic investment in growth and especially in the fight against unemployment of young people. you can never regain trust without winning the confidence of citizens and what we are seeing outside the building here is that people more and more mistrust that the european union as a union not caring about their individual difficulty

situation. by the way, not only in southern european countries. all over in europe. >> the other thing, of course, of interest is what's going on in cypress, very short meeting of the eurozone leaders last night. they're going to leave it to the finance ministers who were meeting later on this evening, of course, as we have to wait and see on that. but merkel is suggesting, in fact, it could take several weeks to come to some kind of an agreement where cypress is concerned. kelly, back to you. >> how much is this complicated by the fact that italy is still without a governing coalition in place? >> well, i mean, it makes the decision oversight far more difficult, doesn't it, because we're aware of the risk perhaps in the markets out there and the consternation, perhaps. we see the big elephant in the room where cypress is concerned is whether we're going to see a bail of depositors and the obvious effects that could be seen in the likes of italy and in spain, of course. i'm going to be head to go italy next week, so i'll be able to bring you the latest from there,

ongoing negotiations from a government that looks relatively impossible right now. >> jules, i think it's time for investors to sell their debt as crisis indicator moves from brussels to rome. good to see you today, working hard at the brussels summit, as always. parliament is meeting today beginning in less than half an hour's time, in fact. and this is the first meeting since last month's inconclusive election results. the first item on the agenda, the new speaker to both the upper ask lower houses. joining us is james wolfson. hello do you both and, james, you know, fist to you, so the election of speakers here would seem to be a key blank in figuring out what if anything the governing coalition would look like. is it going to be someone ultimately aligned with beppe grillo? >> well, that is what we're all waiting to see. we are expecting and everyone is

using conclave language black smoke today and possibly white smoke tomorrow. the two big parties are almost certainly going to give in blank voting sheets today. grillo's people are going to vote for theirs and then after the third vote, they will go for a run off. so for the first three votes, there will be no conclusion. and then they're going to have to work out who's actually going to do it. it could be a grillo person in the lower house. it could be a p.d. in the upper house. but there are no certainties and no favorites. >> and i guess at this point, what do you think is the most likely outcome here? is it a minority coalition between better sanny and grillo? is there any prospect that grillo will loosen what he said his stance is when it comes to ruling with anyone, which is that they have to accept all 20 points of his plan? >> well, there is no chance

whatsoever of there being a coalition between grillo and bersani. there is a very, very slim chance that some of his people will say, we have to do something. we can't obstruct everything and that they will agree to walk out of the senate because, as we know, the problem is to get a vote of confidence in the senate and not in the came better. but if the senate -- if the grunni people walk out of the senate, bersani will have his vote of confidence. it's not likely. there is a small possibility there might be another technical government, but the most likely scenario is that we'll be going through this again in two mo months' time. >> would you agree with that? >> definitely. i would definitely agree with that. i think the clear message we got out from the three weeks ago election was that the political scene in italy remains as fragmented as ever, probably

more fragmented than it used to be a few months ago. the hung parliament was a clear result representing this message. people, italian voters voted against austerity and against the mainstream parties. that also seems that makes unlikely that the two mainstream party, the center left and the center right may end up agreeing on a government supported by them, too. this would go clearly against the voters' message that they conveyed with in the balance. >> and we're looking at ten-year high tallan debt, 4.65%. even as it's become clear there's no electorate that's forming, no clear mandate, we haven't seen much of a market reaction. why do you think that is? and the main risk is there's not a government to activate the omt

or these measures with the central bank, why aren't we seeing more concern in markets? well, i think markets have reacted to the italian elections to the extent they're still expecting some form of government eventually to be created, whether it's a minority government led by p.d., whether it's a grand coalition, political or technocrat government supported by p.d. and p.d.l. they don't really care. they do care about some sort of government being there. and i think what we are seeing in the last few days is that the chances of actually fought having government and having to go to new ballots are getting higher. i think market expectations may be disappointed. >> how much momentum does beppe grillo have? you called him an entrepreneur in that he's basically trying to use new techniques, new ways of

reaching out to a disillusioned electorate. is he likely to gain even more traction against voters the next time around? >> well, that all depends on what happens over the next few days and weeks, actually. if the pd and the pdl and bersani's people do coto some sort of agreement, that's grillo's dream. he'll be able to set himself up as the only serious opposition and he will do very well, indeed. if on the other hand he is said to be obstructing the formation to a new government, then it might be a lot of the people that voted for him three weeks ago will say, though, come on, beppe, we have to do something. we have a country to run. and they will go away from him. so it depends on his technique. he's playing for everything. monte is looking on. i think one reason why the markets may be a more stable is that monte is still prime minister and will continue to be the caretaker prime minister until a new government is formed.

>> it's a great point. last word to you? >> well, yeah, i definitely agree, grillo has the potential to actually increase the support going forward than going into the next elections. i guess this is actually conveyed by the recent opinion polls which are suggesting that grillo may be neck and neck with the other three main political forces in italy. >> gianna, thank you for joining us from citigroup and james walton, thanks very much for your time. james makes the point, there is still monte running the show and there's mario draghi who may be having some effect here, as well. italy's unicredit is set to report fourth quarter loss today hit by higher provisions in its market. dow jones analyst expect the country's largest bank assets to avert a $11149 million euro loss

compared to profit in the fourth quarter of last year. shares are adding 2%, though. they wouldn't want to see them returning capital to shareholders and they wouldn't want them to be stricter on bonuses, too. meanwhile, the ceo of italian energy giant pala scleroni told us he's not concerned about weakness in europe because he's turning his attention to china. this after the company announced a deal to sell 20% of its stake in the mozambique gas field with cnpc. i asked him why now. >> we want to give value to this huge discovery in mozambique. the best way to give value is to involved in the project in natural biogas and cnpc is the most natural biogas in that part

of world. >> that makes a certain amount of sense. a lot of people have looked at your global strategy and said you're early and aggressive when it comes to, for example, africa. so what about at home in italy, how weak is the market there and how much of a problem is that for your business? >> it is not a big problem because 90% of our -- are outside of europe, not only are we certainly our italian and european businesses have been suffering through 2012. but i'm expecting some near 2013 to see a new recovery of the euro. >> a new recovery. it's a tough road ahead for italy, but we'll look at that later. plus, is boeing close to waking up from its dream liner nightmare? an update on when the plane may be ready to takeoff.

you are watching "worldwide exchange." if you're just tuning in, these are your headlines. eu leaders pledge to fix unemployment hinting at more room to meet deficit targets. and u.s. banks largely pass the fed stress test, excludeing a few firms that have failed to make the grade. and straight ahead on the

program, the bank of japan has a new man at the top. stay tuned to find out why and just what they might buy when we come back. zap technology.

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hari kuroda is the next boj chief. the new team is expected to act quickly and roll out aggressive easing as soon as the next meeting in early april. for more on the market impact, joining us from tokyo is chukiji. is there any chance the boj might not wait for its next scheduled meeting and go ahead and call an emergency one now? >> yes. do i think there's a possibility. so the next april boj meeting is april 3rd and 4th. it is indeed possible that as governor kuroda has been saying, they would like to implement that as soon as possible. so there are certain circumstances that the boj might call an emergency meeting even before april 3rd and 4th. >> and the point, too, will be what they've seen in this meeting. we've seen stocks up so much

since shinzo abe came into power. how much do they have to deliver here in order not to disappointment markets? >> i think if they have -- so far, those incoming governors has been very -- trying to be very -- what they have in plan. of course, there are other boj bond members they have to talk to, so they can't be that specific. but i think the market has so far read into their comments that the boj will extend the duration of the jgb holding they are. so i think the market more or less expecting that the boj is going to buy after like five years duration boj. so i think the boj need to do more to positively surprise the market. and currently they're only buying up to the three-year space. but if you look at the ten-year japanese bond, it's yielding i think 0.63%. so do you expect they're going to start buying in the long run or do they shift into other assets? i've heard people say they could do anything from stock toes

japanese reits. >> right, right. first i think the boj will concentrate on lowering the yield curve. so i think boj will be a positive surprise, but i actually do expect boj to say that they will allocate certain amounts of purchase to long duration jgb, such as 10 year, 20 year. and i think that would positively surprise the market. >> okay. and the yen going above 100, that's tukuji's calling. thank you very much for your time. we'll take another look at another story unfolding in japan. boeing has brought out its experts in japan today. among the fixes to the 787.including isolating batteries in a steel case and adding spacers and insulation to avoid overheating. cnbc asked the dream liner's top

engineer why steps weren't taken sooner. >> it comes from learning from experience. we went into the design understanding where the history had been and where the history of the cells had been. we then had these events, which surprised us, actually, and now we're going back and looking at all the things that could have contributed and making sure we're addressing all of those. >> and boeing saying testing is about a third of the way done. japanese regulators said any timetable is premature. still ahead on the program, the bank of england is sounding alarm bells over private equity. find out why the central bank is urging caution over the return of the leveraged buyout when we come back. and here is a look at how futures are trading head of the open on wall street. [ kitt ] you know what's impressive?

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welcome back to "worldwide exchange." i'm kelly evans and these are your headlines from around the world. the fed signs off on most but not all of the capital plans and the biggest u.s. banks and its latest round of stress tests saying some still have their work cut out. a change of tone in brussels, european leaders are giving countries more room to make public investments challenging germany's austerity drive. and italy's parliament

convenes today for the first time since its inconclusive elections. china's parliament approves will i keqiang as the country's new premier as economic growth slows. >> announcer: you're watching "worldwide exchange," bringing us business news from around the globe. thou, of course, we wonder can the dow makes it 11 straight days? i think it's been up 11 out of 11 fridays this year or something like that. but it will be a tough one today. it is looking to shed about 13 points right now at the open. 14,453 is the level there. the nasdaq, the s&p 500 looking to post slight declines at the open this morning, at least the way things currently stand. here is a look at the cnbc global 300 for a look at the trade worldwide. it's been pretty quiet, but over here in europe, we've seen markets losing steam over the last couple of trading sessions.

and the same is true today. italy's mib trying to buck the trend. generally speaking, the major bourses are in the red. giving up 0.1 is% even as credit suisse came occupy upgrading its year-end target. the xetra dax looking to gain about 0.1%. the cac 40 in the red, the ibex 35, too, as ininvestors roll into some of the safer haven markets this morning. how do you make money in these markets? here is what guests have been telling us all morning. >> i like sterling. i think sterling has been overbatered since the beginning of the year. i think the downgrade was already in the price, the impact it's going to have is already in the price. weak selling is going to impact inflationary pressures and something which i read this morning, that the governor was coming around to that point of view.

>> i can understand the argument of why one wants to win equities over bonds in the u.s. but the flip side of that equation is, the same thing that the 401(k) can go into 2010 and will be arguing that people should be looking to get some exposure to their living costs through commodities. >> i think on a strategic basis, yes, it's a bit too early to do that. we're likely to get some good news in the next week or two in terms of the new italian government being formed. but that government will be weak and unstable. so as we get later in the spring, then you're going to get a good selling opportunity. >> now, private equity firms could be at risk of driving another financial crisis. at least according to the bank of england. the central bank warned in its quarterly bulletin thursday that leverage bloomed corporates which in turn can make those

firms more susceptible to default. what does robin dumar think about it? you know a little bit about private equity. were you surprised to see the bank of england address this issue? >> i was surprised to see the bank of england address it with such vehement. because while there is an issue in terms of debt maturities, i think we're going to be just fine, bringing all the institutional forces to investing in these securities. >> your firm is a major private equity player. it's interesting that you make this point that, in fact, what you see yourself as doing is providing liquidity, stepping up into the market and filling a void that banks themselves have left when it comes to fund approximating. >> kelly, that's absolutely right. there's no question that the banks have withdrawn very substantially from the markets. they're not lending the way they were. they're under a regulatory pressure with basul 2 and basul 3 biting. as a result, europe needs to institutionalize. >> what do you mean by that,

institutionalize? >> the majority of bank loans in europe are held by banks, about 66 ers. in the u.s., for example, it's quite the reverse. 75% of loans are held by institutional investors. >> and that's because they buy them from the banks. >> that's exactly right. the banks are in the business of underwriting the loans and selling down. >> people said that was responsible for some of the credit crisis, the banks, instead of having that old relationship, they package it up and sell it off. >> i think in europe, actually, it was the reverse. what created the problem is the banks were holding massive amounts of leverage loan exposure on balance sheet as opposed to selling it down and distributing it more broadly to the market. so for our funds, for example, we're 100% equity in terms of the way we're capitalized. >> no debt. >> no debt. we can take a lot of risk in the fund structures and those sorts of institutional investors need to begin to populate europe. >> why haven't they? >> historically, because the banks have played such an important role and when they

weren't under regulatory pressure, they would routinely hold 250 million on balance sheet. replicate that by 20 bank, that's a lot of taken hold authority. >> as regulators put so much pressure on banks and they start to exit the market or be under financial pressure, what impact is that having, for example, on company's ability to raise funds? how does private equity fit into all of this and is how is this going to shake out over the next couple of years? >> it's a great question. it's massive challenge for private equity to raise large amounts of loan capital today for a buy out in europe. the issue is with the banks reducing their take and hold, you need to find institutional investors to step in and fill that void. you can solve the problem with price and the formation of sophisticated institutional capital. that's what we need in europe to get the job done. >> it is true, though, that there will be these private equity deals refinancing coming to market in a couple of years

time. is there not reason to be concerned about, you know, the debt that's piling on to these companies and what happens if interest rates move around or just generally if the economic environment worsens? >> i think we believe that the high quality companies will have plenty of access to the capital markets to refinance the debt. the greater challenges with the companies that are overlevered, where there's no way to solve the problem with pure refinancing, they need to be delevered and restructured. we need to see an opportunity around having to unlock that problem with sophisticated capital that can come in and provide a solution to -- >> can you maybe help countries delever, too? i think we need a little bit of that right now. you're getting there, robin dumar, thank you so much for stopping by. >> thank you, kelly. chinese regulators have officially appointed li keqiang as the country's premier. giving them their final stamp of

approval to oversee the cabinet. he has an economic ph.d. as he inherits a slower growing economy, he'll face pressure to tackle china's widening wealth gap. eunice yoon joins us now with more. there were 2940 yes votes, six who abstained and three who voted no. >> yeah. an overwhelming majority of the people decided to vote him in. but at the same time, most people had expected that he would have the support of the vast majority of the people. he is really seen as a capable steward of the economy, which is really important because the premier shift is the most important job of the premier is really to manage the economy. he's been credited with helping to really navigate china through a very difficult time through the financial crisis. and also to push through much

needed reforms. a lot of people think that he is going to go down with his well with his counterparts overseas. he speaks good english. he's been described as being very informed. but he does have his critics. there are people here who have said that he's too passive, he's indecisive and he hasn't been total lly forgiven for a role h played regarding health scandal. at that point he's been accused of covering it up and cracking down on activists. >> and eunice, we were talking about the choices for vice president. some of these personnel movements still need to be approved. what happens next? >> well, the next person who most of us would be focusing on is who is going to be the central bank governor? there's been a lot of talk that, of course, the current central bank governor is going to officially get that role. there's been a bit of a -- you know, a government reshuffling

and some kind of reshuffling so that he could maintain that title. so we're going to be hearing that probably on saturday. .then on sunday, is going to be the closing ceremony and then li keqiang, the premier, is fwg to be speaking to the press. this is a rare event and something that will be very important. i anticipate, kelly, that i'm going to be really busy this weekend. >> we hope you get some rest and stay out of the smog. >> at some point. the smog actually keeps coming whenever you and i start talking. >> it's a sign. >> coincidence sthp. >> we're not so sure. inside china, by the way, a new cnbc series has just debuted. catch that monthly on cnbc. check your local listings for that. we'll stay tuned over the weekend to see what happens. this as the samsung galaxy s4 was launched in new york. will it take a bite out of

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new u.s. treasury secretary jack lew will make his first joe seas trip visiting china next tuesday and wednesday. he said ahead of that trip the u.s. has raised concerns over the years about china granting

greater access to markets. in a woid ranging interview, lew says the u.s. economy is resilient. with stocks at all-time highs, despite tepid economic growth, he says there's little sign of a bubble forming in markets. >> the analysis i've seen doesn't give me reason to be worried right now. and i think one of the lessons we learned from 2008, 2009, is that even when things are not a problem, we always have to ask those questions. we need to make sure that we have the transparency to see what's going on in firms and is markets. we need to have the regulatory tools to deal with problems as they develop. >> speaking of bubbles, i think alan greenspan will be on about 7:30 on u.s. "squawk box" in a couple of hours time. but this any case, lew says the strengthening u.s. dollar could undermine exports, it will continue to be the government's policy. senate democrats are putting off any further votes on a bill

to continue funding the u.s. government and avoid a possible shutdown at the end of the month. more than 1 is 00 proposed amendments are stalling the measure. the delay leaves the senate little time to consider the amendment, pass the bill, and work out differences for the house before they go on easter recess in a week. if you're joining us here on the show today on the ides of march, these are your headlines. eu leaders are hinting at more room to fix deficit targets. china welcomes a new premier. and the banks largely passed the u.s. stress test, except for a few that failed to make the grade. now, after weeks of anticipation, samsung finally took the wraps off its galaxy s4 in new york last night. it has larger displays. no price tag yet though. the company made a couple of

management shuffles promoting the heads of its consumer divisions as co-ceos. but investors hung up on samsung today. shares, in fact, were up 2.6%. chery kang is taking a look at this from seoul. what gives? >> some say it was a typical case of selling on the news. but others say its next big thing was not big or innovative enough. let me go through some of the standout features of galaxy s4 had and you be the judge of that. quite heavy on software this time. entertainment. one example is that you can actually record sound while taking pictures and send those still images with the voice message. and convenience, you talked about the smart pause function. the ischool function, we talk a

lot about this one, it recognizes your face and your wrist movement so you don't actually have to touch the screen when you want to scroll up and can down and you can actually just look away from the screen and it will pause for you. if you see samsung trying to rise above apple, but it's mostly the hardware part that disappointed some people. yes, it's lighter and slimmer and it has a bigger panel, the screen. but it's hard to find an obvious difference in terms of designs or any other hardware aspects compared to its predecessor, s3. so not pulling meeting expectations despite a high buzz ahead of this event and this magazine called "wired" is calling it evolution, but not revolution. kelly, back to you. >> all right. new "wired" magazine being one a lot of people would follow on that event.

straight out on the program, the fed says the majority of the country's biggest banks don't have a lot to be stressed out about. we'll discuss the implications to the u.s. banking sector thx.

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now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. welcome back pop program. italy's parliament is meeting today for the first time since last month's inconclusive election results. take a look now some of the first shots of the parliament in rome. first up on the agenda is electing speakers for both the upper and lower houses. while european growth continues to struggle, some think austerity should be off the agenda. in an exclusive interview, the rousou ceo made it clear what he

thinks the government should do. >> the issue is risk appetite. as i said, there is no chance. someone should make first step. it should be government who should commit to that. and, of course, everyone wants to degrade the british government. but we will not help. >> can peel back austerity for growth. >> yeah. growth will sell this. we can reduce everything, but still, we need to grow. >> viewers in europe and asia can grab the popcorn and can tune into full interview with oleg deripaska tonight. if you can't wait that long, head over to cnbc.com and check out what he had to say especially his comments on the future for commodities. european markets are broadly weaker this morning. the ibex in spain down 0.6%. also the xetra dax and is ftse taking a hit. here is a look at what's on the agenda today in the u.s. the february cpi data out at

8:30 a.m. eastern. important inflation gauge there. we'll get that in the capacity of utilization figures and the industrial production report. then at 9:55, the first report on march consumer sentiment. u.s. futures are pointed lower. the dow looking to give up about 15 points at the open. and it's been ten straight on the winning streak for the dow. can it be 11? that's a tough one. the fass dak and s&p 500 are pointed slightly lower this morning. all this as the fed approves the capital plans at banks without any strings attached in its latest rounds of stress tests. ally, former gmac is disputing the fed's findings. several banks say they'll increase their buybacks in share dividends. the fed approved goldman and jpmorgan's plans, but said they must fix law necessary how they determine shareholder payout, recommending them based on

qualitative concerns not on their capital ratios. both must resubmit their plans by the third quarter. the report says that jpmorgan misled investors about the nature and size of those losses and say derivatives are still a big threat to the financial system. the report singles out ina drew and former cfo doug braunstein in particular for criticism. they'll both appear at today's hearing and they'll raise questions about the behavior of several other employees, including ceo jamie dimon. for more on what this means, brandon hawkins joins us now. brennen, great to see you. look, jpm shares are under water this morning. is this more about what the fed said yesterday or more about this today's hearing? >> no, without a doubt, it's about the fed and they they came out. really, the senate report is old news at this point. it happened almost a year ago,

the oil trade, and it's been contained, put aside. really, i think this is almost more a political issue than the fed. >> but brennen, at the same time, people are looking through this report and finding lots of reasons to question jpmorgan's risk controls, its oversight, the extent to which it tried to cover up these losses at the time. is there risk that in this is going to percolate and can put pressure on the banks or on jamie dimon? >> i don't think so. jpmorgan responded to this trade really, really well. they had it wrapped up faster than any investors had expected at the time. they were completely transparent. it dinged their reputation certainly at the time. it was bruised. but it didn't cause much damage beyond that. and i think at this point more investors don't discuss the trade much except to see maybe we should not quite pay as high a price as we previously did until they can have another strain to prove that it's completely behind them.

but, really, i think it's mostly in the rear view. >> and what about the forward looking stuff, especially with regard to shareholder payout webs this qualitative determination the fed made. what's really at issue here? >> yeah. this is the one that's interesting. both goldman and jp got the capital plans approved, but it was sort of with an asterisk. it's like barry bonds hit ago home run. it's a home run, it counts, it's a score, but some folks will criticize it. the issue is that the fed highlighted is with process. so we've got some new capital rules coming into place. we've got new rules out of the fed. and it's clear that the fed is taking a more careful approach for any of the big banks that have large investment banking and capital markets operations. jpmorgan and goldman are -- have huge businesses there. so my sense is we don't know the details, right? so this is just what i would guess. is that it had a lot to do with

their calculations of the losses out of the capital markets operation. >> is this one reason, brennan why you like citigroup? >> citigroup has some unique positions that i think make it attractive to investors. it's several different legs that will help to generate capital returns and improve returns for investors over the next several years. however, one thing that is really, really interesting on citigroup, bofa had a really, really big capital return, a larger than expected buyback. $5 billion plus they're retiring a whole bunch of preferreds. to me, that's a positive read through for citi because next year, citi citi is going to be in a similar situation to bofa and probably going to be able to buy back more than most people expect right now. >> and it will be interesting to see if share price begins to reflect the divergence twenty a citi and a bofa and goldman. thank you so much for your time this morning. >> thank you.

with u.s. markets hitting fresh highs, is now the time to put money into stock? forget the equity strategist view. we've got some market tips from an a-list hollywood actress for you. cnbc call it with mila kunis last night and asked where she is putting her money. >> i guess maybe i would start educating myself a little more on internet based companies. i just started investing in stocks. i'm an advocate of, rike, put things in the bank, put it in a cd, lock it away, be safe. and i've been pushed forward to take chances and i'm learning a little bit about the stock market. >> and stock -- >> listen, what kind of stocks? no. >> i believe she also said something about investing in sapphire mine peps but nevertheless, if mila is moving from cash into stocks, maybe there's something to the retation market after all. acceler-rental.

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