>> the country's communication watch dog says a final decision has not been made. we're just getting some fresh data from germany. this is the german gdp print for 2018 it has come in at 1.5% year-on-year that's exactly in line with forecast comments were expecting that 1.5% growth.

that compares to the 2.2% growth it does mark a slowdown. now, in terms of exports, one of the most closely watched figures within the gdp extremely important for the german economy, 2018 exports grew 2.4% year-on-year that is a slowdown from 2017, which saw 4.6% growth on the imports front, 2018 imports grew 3.4% that is another slowdown from 2017 when 24e grew 4.8%. that all-important headline number, 1.5%, came bang in line with expectations. now, just to round out what we have seen over the last couple of weeks in terms of the data yesterday euro industrial production came in very weak led by germany plenty of indication that the german economy is facing headwinds, but this gdp number has come in exactly in line with expectations having a look at the euro dollar in reaction to this news, the euro is trading down right now about .2 -- .12% versus the

dollar around 1.1467. putting that into context at this time last year the euro stood at 1.22 versus the dollar, but over the last couple of months to really hold in that 1.15 vicinity, and this morning we're not seeing any major moves on the back of this. let's get an update on where we stand in the german market >> thanks. it's interesting that number did come in bang in line with expectations at 1.5% year-on-year, but as you point out, it is much lower than the level that we got in 2017. 2.2% really, all eyes have been on german growth and how it's evolved over the last couple of post months, and the export number is significant there. when you think about it, a lot of the slowing and growth comes from the weakness from exports side just to break it down, we have the dax head map we have deutsche post as was mentioned in the headlines the stock up 2.7% on reports that they will be hiking some postage fees

deutsche bank also, a stock -- around 760 euros the price now 2.6% today they're actually coming out with a covered bond. it seems to be well oversubscribed in the market, and that's a bit of a left of deutsche bank. generally what we're seeing is european stocks are off to a good start that's up .5%. just to start it off and to go back and look at how some of the trading actually was in yesterday's session, u.s. equities, we have the second day of weakness for the year this is the first time in the year in 2019 that we've had two consecutive days of weakness for u.s. stocks. financials were the outperformer, though we had citi and the day up about 4% on positive results that seems to be at positively interpreted by the markets overnight, of course, a lot of the focus has been on this asia stimulus plan announced by the -- who did mention in his

speech that they would look to introduce measures to help counter slowing growth and, of course, that has given a bit of a boost to chinese stocks to shore up anything from 1.2% overnight. the nikkei back trading again up 1.1% you can see the positive effect of this china stimulus announcement is really translating into european. it is a major day for the u.k. today. all eyes on the ftse 100 and the reaction in financial markets. already we're seeing a bit of a boost up .4% that meaningful vote is not set to take place until 7:00 p.m we know at this point that on first blush it looks like it will be the question by how big a margin it's certainly what investors will be looking for, and what that means for theresa may's ability to go with a plan b.

>> despite some of the sensible nonside real estate down .2% lufthansa is an underperforming stock in europe. that is because of some cuts from analysts with respect to their price targets. up at the top, auto up a few i understando sin accuratic stories. a couple i want to flag, though. those sales numbers came out higher than expectations up 6.8%. very strong sales in europe. up 30% weakness in china. i think that's interesting because it plays into the flaretive china slowing and also demand coming out of china as well speaking of the package overnight, basic resources in europe also seeing

disappointing. industrials as well. these two sectors are very closely correlated to what has been happening in china. technology as well that is it for europe this morning. pretty much trading on a firmer -- in line with what we had in asian equities overnight. zbloog thank you very much >> the u.k. prime minister theresa may has issued a rallying cry to lawmakers urging them to give her bricks it deal a second look ahead of a vote on the plan later today she warned brexit may not happen if her deal isn't passed speaking in parliament may implore mp's to -- >> when the history books are written, people will look at the decision -- people will look -- people will look at the decision of this house tomorrow and ask did we deliver on the country's vote to leave the european union? did we safeguard the economy,

our security, and our -- or did we let the british people down i say -- i say we should deliver for the british people and get on with building a brighter future for our country >> labour mp hillary bend has pulled an amendment to the withdrawal deal that would have prevented both her blan and a no deal brexit from going ahead on twitter. then explained it was important to get a clear result on may's deal in the vote later today we're joined around the desk by valentine marinoff from credit agr agri-poll. the pound will depend on the support for may's deal it really comes down to numbers. can you outline for us what kind of moves you would be expecting if we see a heavy degreet as defined by more than 100 mp's

versus a moderate loss >> it would be defined by really those mp's, a number of mp's, again, really outnumbering those in favor by 1 00 votes i think it matters the pound may be complicated by jeremy corbin if indeed he puts his money where his mouth is and does file a vote of no confidence for the government that could create a period of time of heightened political uncertainty which could see the pound really relinquishing most of its gains i mean, 125, plus with the pound really started recovering from 9,150 was the place the sterling really saw the deal. you can see investors are really -- >> now, first, the margin of defeat, and you said that anything more than 100 would be perceived to be a big defeat for the prime minister, and then the

second one is the potential threat of a no confidence vote forward by jeremy corbin given both of those elements that you are pointing to, the expectation on the first one is that she's looking at a defeat could be as much as 200 mp's at this point in time if you just aggregate all of them and you have the dp's that would vote against. the opposition for the deal either skeptics of the employees. the numbers add up north to 150 at this time in addition, it seems pretty clear that the labour party and jeremy corbin actually will push ahead for a no confidence portion against the government this time. >> that is the case that i think the fx markets, i like to think that -- they're looking beyond political uncertainty that we may be facing in the next couple of weeks or so

in particular fact being that i would say a strong majority of the mps certainly are against a non-deal brexit. whatever comes, they may be dealing with a parliament that will still try to avoid a nondeal brexit at any cost you look at the bull market and positioning. the market is kind of a position for potential disaster in terms of -- if we, again, transition to sort of a process, it's a longer-term prospect that will keep the proverbial count down at least investors could do is profit on the pound short and cut some of the long rolls and, indeed, ultimately that will help the pound -- help keep it resilient as it is i don't think it is a sign of confidence what we're dealing with it is just a sign of how stretched market shorts in the currency have become

>> the no deal for the time being is being priced out. >> actually, we're going to have to leaf leave it right there he we will be back with more. let's get out to westminster where steve is on the ground coming to us with a guest to weigh in on what we can expect from tonight's vote, which is not about will theresa may lose, but what margin will she lose it is vote? steve. >> one of the key scenarios to start us off with on these many charts that will be great is mrs. may will almost certainly lose her vote this evening come 7:00 p.m. or whenever it is. one of the reasons is she can't command support from people who have supported her, hardline brexiteers with that in mind i would like to show sevi wilson who is dup spokesman on brexit. nice to see you. you and i have had a great chat off camera as well about the various scenarios. this is interesting. you support mrs. may you will support her in a

confidence vote. you're going to be voting against her this evening that is a very convoluntarited picture. >> we don't believe the disagreement, first of all, delivers on people that the united kingdom voted for, ie to leave. the conditions which are attached to this agreement will actually keep northern ireland within the european union separated from the kingdom laws in instead of being here in london, who romaine in brussels. we will have no say in those laws we would have to regard our own country as a third country, and would not be able to participate in any -- >> you and i were discussingof camera the bad old days. no one wants to go back to before the good friday agreement. do you not trust him to look out for noorn ireland, look out for his best interest as far as europe was concerned >> the overall -- it's been part of the problem, but leo has been

the one who has insisted that the despite the assurances given on the good friday agreement that northern ireland's position within the united kingdom would not be changed without the consent of the people of northern ireland he has been the one who has insisted that northern ireland has been different >> do you think -- >> well, they have been part of the problem, but i suspect that as some of the -- the price for britain leaving the e.u. will be northern ireland, and they have been the useful -- and the e.u.'s plan to punish britain and have played that role very, very well and have hurt relationships that were growing and were -- and proving between northern ireland and irish republic i used to know that as a minister how good relationships were they have struck -- >> how has theresa may got the backstop so wrong years ago?

she said this was going to be the key issue in any brexit situation. the backstop and northern ireland and the republic's relationship is going to be the key sticking point how is mrs. may so misjudged this actually, despite her assurances that she believes she's extracted from the e.u., from the commission as well, you think they're meaningless. they've actually height erped suspicions >> i don't know if i should go -- either because we warned her. we warned her two years ago that what the e.u. were asking for in terms of the border between northern ireland and the irish republic was, first of all, not necessary and, secondly, would be very, very damaging to the relationships and also would not deliver on brexit. we warned her on this. why has she got it so wrong? i don't know certainly it's because of lack of warning from us, and also, i mean, the evidence is already there.

there are health checks for goods crossing the border and we don't have to -- we don't need to have all of this apparatus, which is contained in the withdrawal to do that. >> there's a very big chance that the prime minister would be brought down over this vote as well she has a resounding defeat, and are you prepared for that consequence in what may ensue next general election, it possibly the government? >> i don't believe that she will be brought back. certainly, she may decide that she has to leave as a result >> she taken a lot of punishment so far, and she's still there. how much can one person take >> we're not -- all we're -- >> it makes no difference. a hard main or a hard brexiteer. >> we prefer that it be someone who believe in what the referendum and try to deliver on

that, and we are concerned all we're interested in is what -- will be following and the leader will be following and, meanwhile, perceive the leader deliver on the people in the united kingdom for the whole of the u.k. and leave the e.u. not part of it and for that term for that agreement to be such that britain will be in the advantageous relations in termsd for a no deal brexit, march 29th you would like to walk away without any deal >> i believe -- well, first of all, there's a lot of people put in place to see the normality going here

it will be the -- it has difficulty at that stage because they need a british monarch. they need -- they have 2 billion with the united kingdom. we need access to a market, and i believe that once we are in that situation, the reality will kick in and brussels, and they will come back and will negotiate a realistic trade being rallied. >> finally, a lot of mps are pro-european despite the vote was in june 2016 as well do you believe the whole brexit project is in danger on the back of tonight's vote? >> well, i believe it's only in danger if the prime minister decides to back down against the wishsz of the people in the referendum against the promise made in the manifesto and against the promises which she has made time and time again in her speeches since the referendum if she doesn't back down, then mps and the house of commons can

have whatever they want. the government policy that has not changed will see the brexit through. >> brexit spokesman for the mps, what a great place northern ireland is >> i hope so >> thank you very much, indeed back to you in the studio. >> kpleexcellent. thanks for that. we'll be back with you in ten, 15 minutes time. also coming up, china signals more stimulus on the way more after this break. stay with us - in a crossfit gym, we're really engaged with

who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com. upload your logo or start your design today i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.

welcome wack germany's regulators say they have not reached a final decision it comes after a report that a price hike is in effect, and as the world's largest cure year group awaits an upcoming decision on pricing regulation a court has denied beal to carlos ghosn he was released last week after the current executive was

indicted on financial misconduct charges. he denies thesis allegations, and ghosn of the french alliance partner renno has been in detention in japan since november >> the gain of the new emissions test has been competitors -- sales in china slumped again to 262,000 vehicles. china has signalled more stimulus measures could be on the way. the chairman of the plan said china would have resorted to flood-like stimulus, but would move faster on investment projects >> and the vice chair has reiterated the sentiment sthe

acknowledged the turmoil and said beneficials would be in particular on the data let's bring in valentine marinoff back into the conversation now, just what we heard there, what we heard in the minutes from december, what we heard from jerome powell earlier this year it sounds like the fed is paying attention to the same things the market is paying attention to. does this mean that you can be confident now that they won't make a policy mistake in 2019.

>> however, also, it means that the fed may be moving really very close to the end of its current tightening cycle, and if history is any guide, the rate hike will expect later in the year would be what we would call a dovish hike. the forward guidance will go with the hikes, and not necessarily support the dollar and it's not going to necessarily support its separated advantage across the board. as a whole really you could describe this year as a convergence even though that's not the central bank catching up with a hawkish fed it's a more cautious more dovish stance, which is in line for that convergence and that stance

i want to ask about would you think the stimulus means for the currency at a time when trade was heightened and we're heading into a period where there may be some sort of resolution with the u.s. we don't know, but it lookslik they have discussions for the first couple of weeks of the year >> i think the driver of the currency has been highlighted with conflicting drivers on the whole we believe that the path of least resistance will be higher in we expect a gradual appreciation to be gains of the dollar

>> if you think of the u.s. protectionist policy there, there's a way for it to work actually for the dollar to be stable and actually we -- >> surely what's more important is that china is keeping their growth under -- in order to achieve their decade target, they need to have to get a growth of 2.3% for this year.

>> that's also underpins the view on a stable currency, right? the fact is that the chinese will be adding more government debt on the top of already existing debt, and the fact that the reserve curb si is helping stable a stronger -- will make it easier for them to implement that strategy down the road. >> all right thank you very much for joining us our global head winds taking their toll on europe's biggest exporter we look at the german latest gdp figures. your job isn't understanding tax code... it's understanding why that... will get him a body like that... move! ...that. your job isn't doing hard work... here. ...it's making her do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. (danny) jody... ...it's time to get yours! (vo) quickbooks. backing you.

. welcome back to "street signs. i'm juliana.joanna, and these a your headlines >> the euro falls after germany suffers its weakest growth rate in five years as the economy ministry blames a global economic slowdown for the disappointing trend. >> european equities check asia into the green after beijing hints it can keep the stimulus tabs open and insure a good start in 2019. auto stocks lead the way, also boosted as the french carmaker posts record sales in 2018 westminster wakes up no

closer to a deal prime minister theresa may braces for a parliamentary defeat after her last ditch efforts to lift -- to do little to win support for her brexit plan >> members on all sides of this house, whatever you may have previously concluded, over these next 24 hours give this deal a second look. european markets have now been opened for about one and a half hours, and as you can see, beside me it is a positive day for european markets across the board. we are seeing gains. this follows some pretty decent moves higher for asian stocks. this follows the chinese government's signal that more stimulus is on the way, both in terms of monetary and fiscal support. now, of course, the big event here in europe today that everybody is watching brexit the ftse 100 is also gaining a bit this morning up about 37 basis points at the moment the big question is not whether

or not theresa may's deal gets through. it is by how much does it lose we have been bringing you coverage throughout the morning. we have more for you shortly let's get into 4x markets and see how sterling is traded at the moment we have a little bit of a dip lower for sterling it's about that 128 level. it has really been range-bound in the lead up to tonight parliament vote, and we will need to see some sort of resolution to see it break out of its current range according to experts we've been speaking to the euro has dropped 40 batsds points to 1.143. that is, of course, on the back of german gdp data that we just brought you. 2018 came in at 1 .5%. that was bang in line with expectations we'll give you a little more detail on that momentarily first let's get over to u.s. futures and see how those markets are shaping up this comes on the back of back to back losses for u.s. markets yesterday. we saw two days in a row of the major indexes closing in negative territory albetrk the moves were pretty contained in the context of what

weave seen over the last few months now, this morning it looks as if we are going to see a bit of a rebound for all three major sbeks. they are all looking to open slightly lower in just a few hours time as i said, i want to give you more detail on that german gdp print. germany's economy grew at the slowest annual rate in five years in 2018. preliminary government figures show that gdp grew by 1.5% that was bang in line with economic forecasts germany's economy ministry said the loss in momentum was due to a weaker global economy, adding that growth was mainly driven by domestic demand. now, i want to get out to aneta who joins us from frankfurt at the goldman sachs global strategy conference. what can you tell us from frankfurt? >> thank you so much here on the ground there's a lot of talk about the equity markets now chiefly valued or whether it's now the time to go back into -- there's a lot of talk about a potential recession or whether recessionary risks are a

bit overplayed there are so many topics here at that conference that really makes it interesting i'm now joined by eric, chief investment officer at dws. thank you very much for joining us we were just talking about that credit market could be quiet topic for 2019 what's your view here? >> i would think that credit and relative attractivity to equities has risen, so in particular in the european space at this very moment i think credit including euro high end is quite attractive. maybe more attractive than european equities. it's a little different because as i judge credit, the credit quality in europe generally is higher than in the u.s., and the u.s. we still face a risk of fed hikes. there's less risk from interest rates in europe.

>> there's a lot of talk that europe is a very big part in the global economic growth situation so to say. what's your view here? will we see a negative surprise for growth in the euro zone? >> i'm still skeptic about it, so you have to -- you cannot judge europe on a whole. you have to speak differences, and italy indeed has seen very weak numbers there are some question marks, the sentiment of france, but i think for europe and in particular germany is doing still very well. a recession and the core of europe is very, very unlikely, and given the reason that we see some stimulus in china i would say europe is a little bit also

a derivative of global sentiment. i think i think the recession fear in europe is a little overdone >> what are you telling your clients? what are the big topics for investing in 2019? >> the big topics, i would rank them as still the u.s. fed where are we in the tightening cycle? that's number one. second is the trade escalation china was trade conflict, and then i would judge italy and number four is brexit. >> talking about brexit, today's big day for brexit are you still exposed to the u.k. we are exposed in an underweight fashion. i see some, let's say, light at the end of the tunnel that the underweight, particularly in ermz it of currencies are underweight the british poubd that we changed this

there is so much negative scenarios that have been priced in, and i don't know what will be all these amendment votes this evening, and it's so complicated, but what i like to make is a suggestion is look at other big events for -- i make the comparison for year 2k the year 2000 was something everybody had played through all the negative scenarios, and then it worked out fine in the end the most promising scenario is a kind of either small extension of arctic 50 or rolling extension. i don't see a hardcliff brexit and that's the reason why the brexit issue is on the lower side of concerns >> talking about italy again you were raising the topic of

italy twice. what is your big concern for 2019 >> 19 years. i think we have to look into 20 and so if i look at the risk, the global risk is that we see some new amendment of downgrades italy has very, very low no buffer anymore there's potential negative downgrade scenarios. i would look at italy and -- just briefly, what are you expecting from that? >> i'm expecting -- maybe already in the 24th january meeting. it's a surprise in the summer

that they will delay -- that could delay the forward guidance the rate hike is something maybe for next year, but not this year anymore. i would expect also a kind of dovish ecb and maybe not so dovish fed -- >> okay. thank you so much. have a good day here at the conference >> i think the overall understanding here, the goldman sachs strategy conference is that 2019 will be a volatile year some people call it a messy year also one where you can make a lot of money if you are on the right side back to you. >> thanks for giving us the latest a big day in the u.k. today. let's get on with our top story. labour p hillary bend has pulled an amendment to theresa may's withdrawal deal that would have prevented both her plan and a new deal brexit from going

ahead. >> i think the potential no confidence vote is key and a big question is what labour will do once the vote is inevitably defeated at this point >> absolutely. let's get to a member of the shadow cabinet we heard from the dup. we heard from conservativetives. nice to see you, andy. look, the question from the studio from my colleague is what happens next if mrs. may loses we think she will lose tonight

we're here because of her failure to listen and persevering with a threatening of blackmail and that's going to fail when she fails in circumstances, this should automatically resign that is how we do politics in this country it's only the fixed term parliament act that keeps her there. we are going to table a vote of no confidence soon it's got to be at the optimum moment for us to succeed a few people just -- i know people want the date and the hour, and that's a reasonable request, but i think you've got to understand that we've got to make that to time it it will be very soon >> alo lot of people you have a shadow meeting, but a lot of people in the labour party want jeremy corbin to do it as soon as possible >> it will be very soon. now, how much more clear can i be than that >> perhaps not if the vote of no confidence goes against the prime minister,

we could have a general election very, very quickly is that the ultimate aim of the labour party to force a general election >> well, absolutely. it's been a failure here a failure in the key piece of legislation. the most important piece of legislation are a vote in parliament for many, many a decade this prime minister has put all her eggs in this basket. she's refused to listen, and she's tried to blackmail parliament, and it's not going to work. she and her government must go, and it's not just that they're failing because they're failing to address the issues of homelessness, des tugs, crisis in our health service, and -- >> the bedroom tax, and that's not what we want to talk about today. we'll stick to brexit. >> they're critical to leaders in this country. >> let's talk about cross-party consensus. if indeed mrs. may gets a bloody nose, if she indeed she can't renegotiate to strenuously with the e.u., do you see any scenario where cross-party mp's can get together, bang their

heads together and come up with a solution that works for all people >> i'm as frustrated as everybody else that theresa may has not come to her magesty's opposition and said, look, where is the common ground what can we negotiate? where can we compromise? jeremy made that offer to her. >> does this look like common ground >> he made that offer in september in liverpool, and she rejected it. the best she's done is last thursday and friday is make a couple of phone calls to a handful of people and to trade union leaders. as important as that is, she got short changed where. >> that's the thing. your own party, do they know whether he will remain or bricks it does he want a second referendum or stick by the -- >> he could not be clearer where the labor ier party is >> does he want a second referendum >> we said kwout any shadow of a doubt that we will respect the outcome of that referendum we want to see permanent customs union and strong signal market we want to achieve those things. let's face it. with theresa may running the

clock down, the opgs become more and more limited and pressing. the question i'm asked often, are we going to need more time that is quite a possibility, but ultimately, the option of that second referendum is a live one, and we couldn't be clearer about that i don't know why that doesn't get through to those series of faced options all the way through, including the option of the second referendum. >> off the vote of no confidence, which will come. very, very soon as well. do you think mr. corbin will get behind a second referendum >> if we're in that situation, and we haven't been able to progress that discussion, that is remains a live matter for us. i've really answered that, and it doesn't improve for mere repetition, and i'm having to do it we spoke off camera, and mr. corbin was very clear about what labour wanted to do

the e.u. said they won't renegotiate. >> this withdrawal agreement is not up for renegotiation if there's a different proposition, if something happens, be it a fresh government comes in, there's a fresh discussion to be had, or if there's a shift in position significantly, that embraces the proposition that we are making, that is a fresh discussion, and the european union have said that they would talk to us on that basis let's not get that one confused. >> one minute before your meeting before you have dog out to shadow cabinet as well. in terms of an extension to article 50 as well, i mean, you voted remain as well you want to see actually a good deal as well do you think that an article 50 extension is an inevitable conclusion now that's not political that's cross-party >> i understand the point you're making i think it's unfortunate that we're having to get into that discussion, because a lot of people will be very unhappy if we do have to pursue an extension of article 50. this prime minister has run the clock down so badly the options become fewer and fewer, and i

can readily see an extension to article 50 is going to be necessary. let's see what happens on a day to day basis this is a fast-moving discussion >> go to your meeting. thank you very much indeed. >> thanks for that from westminster and following the story. we will be tracking it as the day the big vote is at 7:00 p.m. this evening now, the italian baining index is trading at its lowest level after the ecb reportedly

urged them to put aside more money to cover nonconforming loans by 2026. according to an italian newspaper, the central bank's request is limited to the banks under its supervision. they also said thes will be able to choose not to comply with the request and will need to explain their reasons why. >> also coming up on our show, as citi kicks off u.s. banks earnings seasons, details after this stay with us unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house

needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur. talk to your doctor today, and learn how janssen can help you explore cost support options. remission can start with stelara®. explore cost support options. do i use a toothpaste that whitens my teeth, or one that's good for my teeth? now i don't have to choose. from crest 3d white, the whitening therapy collection with new spearmint and peppermint oil. it gently whitens, plus it has a fortifying formula to protect your enamel.

crest. healthy, beautiful smiles for life.

welcome back to the show citigroup has beat on the bottom line the fourth quarter earnings per share of $1.61 however, revenue missed expectations by a half billion dollars after bond trading fell during the december market turmoil. will fred frost filed this report from the new york stock exchange >> despite a revenue miss, citi traded higher because of most of its core businesses performing well it, like the rest of the banking sector, came into earnings on cheap valuations in general, the banks were

trading higher because loan and deposit growth for citi was good asset quality was solid, and the net income did not deteriorate significantly. there were no signs, therefore, of a u.s. recession in the numbers or on the earnings call. the stock and indeed the sector responded positively this was further boosted by strong cost controls with expenses down 4% year-over-year. that allowed an eps beat for the capital markets environment was tough. investment banking down 1% equity trading down 4%, and fixed income currency and commodities trading down 21% here is the ceo mike corbatt expressing the sentiment that drove that trading miss. >> people went from some cases to having reasonable years to is actually having down years we saw kind of a mindset that manifested itself in similar ways for those people that managed to get there and be up, they wanted to protect their ups and weren't willing to necessarily be that active, and those that were down

said i'm down. i don't want to risk being down further. we really saw a precipitous drop-off of client activity as a result of that >> despite that tough environment, the bank stocks traded higher today. on tuesday the focus turns to jp morgan and wells fargo will fred frost, cnbc business news, new york you can also catch our first on cnbc interview with welds fargo cfo this evening on closing bell that's also with will fred frost. i'm happy to bring in senior investment manager from aberdeen standard investments who brings us down the line john, i know that's your bond investor we saw a big reaction in equity markets yesterday. citi stock traded up 4% after those results even though there was somewhat of a miss on revenue beats on profit. what is your take-away as a bond investor >> it underscores the importance of the cost control, which is

outlined the fact that it has many different drivers as a diversified bank gives us great comfort as a bond holder an asset quality looked great. a lot of good things to take away >> in city we were speaking to a bank analyst on our show that said that this season is really mostly about the outlook and the guidance that banks are giving, and i think a lot of investors took comfort from corbatt's earnings call when he said there's no evidence of a significant slowdown does that also give you comfort as well, given that citi is the first of a major u.s. bank to release their results, and that other banks are also not picking up on any notable slowdown in activity >> i think that's an important point. probably good read-through for the rest of the banks, but, again, very, very good outlook kmet seems fundamentally in strong shape there may have been some

slightly substantial markets, but the real economic indicators remain robust. >> you mentioned citi's progress on cost cutting, and i want to try to extrapolate when we can kwha we heard yesterday to the broader sector do you think we can take any read across the way in terms of cost-cutting, but also in terms of loan growth and also net interest margin from citi to the rest of the sector >> i think jp morgan should have nice loan growth, particularly in the commercial and industrial lines of business, and i think cost control would continue to be a theme echoed from some of the other banks. bank of america and coming up tomorrow i think there will be some continued commentary on cost control and particularly with revenue drivers ahead in 19, cost controls will come into sharper focus. >> now, as -- >> to help with earnings >> there really were no signs of u.s. recession coming on any time soon.

when might we start to see delinquencies start to tick up is it still a long way away, or is that something you are monitoring throughout this results season >> so it's a good question we are actively monitoring that. i think right now we're standing at historically low level forces losses citi's guiding stable credit cost for the rest of 19 in its credit card business, and we saw stability across its results yesterday. i think we will invariably see delinquencies begin to tick up perhaps towards -- as we go through the course of the year right now tear at historically low levelled and pour tend wealth for continued asset stability. >> finally, john, i want to ask you about their capital perspective. from that angle, the bank's capital position is a lot stronger than it used to be. what does that mean for fund and potential bond issuance in your space over the nextier or so >> sure. that's a great question. we're actually at a unique juncture where bond holders and shareholders have their interest aligned.

shareholders are getting a reward for their patience over time as capital cushions get built up, and bond holders are standing with cushions of capital that are two times the level that they were coming out of a crisis. we're actually at a unique paradigm where bond holders and shareholders are uniquely aligned. there are capital levels coming slightly down over time, but they'll still be quite sufficient to support bond holders, and i think banks have built up significant buffers, so the issuance should be slightly lower than last year >> that is it for the show we'll just leave you with a screen shot of u.s. futures. it looks as though it's going to be a slightly more positive open hey, batter, batter, batter, batter.

[ crowd cheers ] like everyone, i lead a busy life. but i know the importance of having time to do what you love. at comcast we know our customers' time is valuable. that's why we have 2-hour appointment windows, including nights and weekends. so you can do more of what you love. my name is tito, and i'm a tech-house manager at comcast. we're working to make things simple, easy and awesome.

you are hours away a make or braem brexit vote. theresa may's plan to leave the e.u. or will she have to leave as prime minister? we will take you live to the u.k. the lights may be on in the kus capitol, but a large part of d.c. remains in the dark as the government shutdown enters its 25th day there are burgers. as for your money, wall street looks like solidly in the green after markets posts their first back to back losses in 2019.