the pickers, by the way?>> and here to note -- utilities, they also have consumers that are companies. think about the tech companies building these datacenters? the lowest hanging fruit for companies that want to cut emissions is green power. there is steady demand there. for utilities they still have that customer, can pass along the higher costs. for a consumer, might be more price sensitive say, i'm going to wait for rates to come down before i decide to put panels on my rooftop. >> that utilities gets tax credits and the picker family wants to do the right thing. >> right. >> if you lived in california, you would get less because now you can't sell a bunch of energy back into the grid? >> look what'seds with e.d. sales. sputters, have grown but actual growth levels are -- >> threw it under the bus. tried to put in the wrong light bulk and blew a fuse in the house. >> very confusing. >> change of life in the picker house, see you in the 11, the 1, the 2, probably last call. >>> coming up, venture capitali

leslie picker.hem now, joe, but it appears that citi was able to notch a beat both on the top and bottom line here reporting revenue of about $18.5 billion compared with estimates of $18.3 billion in terms of the bottom line, 163 compared to estimates of 142 so significant beats on top and bottom lines you can see those shares down about 1.8% in pre-market trading on these results let's get through some of the details here overall we saw revenue increase by about 6% but net increase -- net income decreasing 25% during the quarter. that's largely similar to a lot of citi's peers. operating expenses did go higher they were up to 13 billion in the quarter, an increase of 8% that largely has to do with inflation, volume-related expenses and the like. their cost of credit was $1.4 billion. saw loans tick down versus the prior year period. deposits also down both of those were kind of on a similar trajectory down 3% versus the prior year period cet 1 ratio up to 12.2% for citi so approaching the target th

ten miles a day, a usual picker.conditions, and with our robotics system, we want to improve this condition and to improve the safety as you said. so, yes, it is a trend induced market and customer are really looking for the next generation solution. that's why they come to us. >> you already have pretty good client list too. if you can tell -- carefour and gap and head count up 80%, a billion dollars of systems you recently sold on a $2 billion valuation. long-term, what kind of compound growth do you think you can -- >> we think it is near the beginning. we have reached $1 billion intake in eight years. we are quite a young company and it is incredible to reach such an install base in such a short time. our customer in different vertical, grocery, carefour, the gap, so our system is applied to many different logistics, many different verticals, which i think as explained our growth and if i take an example of the u.s., we have developed our revenue each time in the past three years. so, i think the system, the prod

right now, let's get to leslie picker in steel country.he joins us now from ohio that's called steel country. god's country, another name for ohio what can you tell us >> reporter: well, i would agree with you there, joe. we're here in the mission control center of timkensteel's newest facility. paley right behind me is m monitoring the screens to make sure the machines are doing their jobs for high-caliber steel. this facility invested about $50 million to build this is a few years ago. but in recent years they really have been struggled financially. they've had to shrink their workforce by 12% these are jobs paying about 72,000 aids yea$72,000 a year tminnesota timberwolveti tim timken was invited to the white house. and now, we've spoken with several employees here at the facility they're cautiously optimistic about the plans of it. but it's unclear at this time exactly how they will be investing or hiring, moving forward. because the plan has not yet been signed into law yet guys. >> thanks, leslie, timken, i know, little ball bearings

leslie picker joins us with more. >> reporter: good morning, andrew. bank stocks from the post election glow with the prospect sent the sector soaring and gravity has taken hold the sector, looser capital requirements and buybacks remain a question. goldman sachs estimates $185 billion in excess capital, some could be returned to shareholders. over the last year plus, banks have been hoarding capital despite the stronger economy economy. under the new administration and the turnover in the fed role, it is highly likely the new rules will be far less onus. as a result, goldman says the industry could repurchase 4.5% of the market cap in 2025. estimates are banks would have $90 billion in capital if basel had 90%. jpmorgan and pnc have the highest capacity. any buyback relations will be key as banks as jpmorgan and citigroup and wells fargo kickoff the earnings season tomorrow. guys. >> leslie, if you were to look at one of the banks s there anybody you are particularly interested in that is a bellwether for the rest at this point? >> reporter: well, i t

lesley pickers joins us fresh off the media call.were asked how they prepare for higher and longer rates and chairman and ceo jamie dimon spoke up and said rates being higher on their own isn't important. what is important is the why. if it was because of stagflation, obviously it is a negative he says. if it is because of healthy growth that's actually pretty good. he was asked about this week's inflation reports and how it reinforces his view from earlier this week in his shareholder letter that higher prices would prove to be stickier than expected. he said, one of the things i expressed in the letter was we don't pay as much attention to monthly numbers as you all do. i think he meant the media. i don't think they've that relevant. they're often diss ported by multiple factors. he reminded the media he was talking about a range of outcomes and they weren't forecasting a specific number as it relates to rates. he spoke about the consumer and saying that they still have numbers related to the covid era. he said when youlook at char

. >>> in the meantime, lee cooperman calls this a stock pickers market. we talked to him yesterday where he told us he is not interested in buying stock market benchmarks likes the s&p. he says valuations at this point are too high. he thinks the market is under estimating the risk of the fiscal crisis. he called out his least favorite part of the market right now. >> my least favorite would be long-term bonds. i don't think bonds with the long duration make sense given what is going on in the world. i think interest rates will likely go higher. when interest rates go higher, bond prices drop. i would not be a buyer of bonds until we got to over 5%. >> later this hour, we will take a closer look at the energy sector. that is a place where cooperman is finding value. andrew, he has 20% of his portfolio in energy stocks. everything that happened with exxonmobil and pioneer earlier this week makes him think consolidation is coming. >>> we have more on the auto strike. yesterday, ford's president of operations saying the company is at the limit of what it can

leslie picker joins us. >> that's right.endary stock picker jeff vinnik getting back into the game he returned $6 billion to investors. this morning he announced that he's relaunching vinik asset management the key question, why now? investors have been moving it. the average long/short equity lost nearly 7% last year under performing the s&p 500 and the broader hedge fund industry. but vinik says he sees those trends as, quote, opportunities even as they've caused other industry titans to go out of business in a statement this morning vinik says, quote, after six years of running my own money, the fire in my belly still burns. his plan is to use the same -- >> looked into >> the belly >> yeah. yeah yeah yeah that could be something serious. tums right in -- anyways, go ahead. >> he plans to use the same style of investing he has for three decades. his style is fundamental, bottom up company analysis layered with his views of the economy and markets. >> interesting i was around for the entire peter lynch era. he had a tough

i'm going with picker against the bears. >> okay. >> picker is my pick main stay.lobal investment opportunities requires experience across asset classes and markets. it demands an active, long-term approach focused on the potential for creating wealth and generating income. learn more at federatedhermesinc.com you love closing a deal. but hate managing your business from afar. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> reports say opec and its allies are considering an oil production cut of over 1 million barls a day. if so, that would be the biggest reduction since the outset of the pandemic joining us is jeff currie. i think wti is up by over 4.5% brent's up by about 4.3% on this news do you think opec actually goes ahead with a cut like this >> well, they're inseptcentivizt do it right now. they're the only producer in the world with spare capacity. i like to argue that the old oil order is back. opec is probably more powerful than it's ever b

it plans to list under the symbol h.o.o.d >> keep us updated thank you, leslie picker >>> meantime allomptses investor concerns >> this is did i i think stocks have been going down forever these roll over maybe two, three weeks ago. they're somewhat related to reddit from bottom to top, and the airlines, you know, they're more than just ge and amc, so we have to let the reddit people get their clocks cleaned -- i only say that it back i like to be heckled on twitter when you have this kind of yield, andrew, 1.22, give me 3%. do you look through the delta variant at this point? >> yes, absolutely you look through it. >> yeah, you look through it, all these athletes testing, they're obviously asymptomatic or else they wouldn't be crushing it right now. look, i think also, by the way, the j&j, dr. propyl says that's the one to be careful of -- not to disparage it, but i think the asymptomatic is not as dangerous. the deaths are not going up that much i'm not buying that this is the end of the bull market i'm saying that most of the companies that are involved with technology have been rol

leslie picker is here and she joins us with more valuations come down potentially. >> yeah. >> still pretty high. >> still pretty high definitely has been taking down over the last couple of weeks. >> when they said the number we were all whispering, that's the whisper number, that's the fake and we're going to come down, right? >> yeah. oftentimes you see bankers pitch these numbers to get -- >> you know -- >> just get interest. >> get into the deal. >> range, bring it back to it. >> you start kind of conservatively, that way you have more flexibility to price higher according to sources, uber is expected to launch its road show this morning that is the part of the ipo process where the company's executives will go around the country to meet with investors to find a specific price by which they will debut their stock. reports yesterday said uber is intending to market with a range between 40 and $55 a share that would imply a valuation as high as $90 billion and an offering up to $10 billion the amended ipo prospectus detailing the specifics of uber's marketing plan should be out an

>> we talked about alpha, this is a stock picker's marngt.ctor p performance this year has opened up big time from before. >> we hear that once a year it's a stock picker's market. >> i think when value does better than growth, when small does better than big, when cyclicals do better than defensive, that's usually -- and interest rates move up, that's usually environment for the stock picker. >> you want to tell us what you're picking? >> i got five pair of stocks here. >> and you have one minute. so let's see if you can do it. >> express scripts if you like the down and out. technology vmware mastercard, consumer, cbs, walmart. i love the airlines ual and delta. and financials got to own something, i'll give you three, citi corp., bank of america, state street if you're conservative. >> not -- >> prefer multinationals than -- >> did you tell us about mckesson and express scripts like years ago? you know they're cheap, you know what that means? >> i started by saying that's the controversy -- >> they done well or come down? >> yeah, they've

always say it's going to be a stock pickers' market.s always a stock pickers' market if you're willing to have a high concentration portfolio. what most managers do is they do not have a high concentration portfolio, but no man's land, 150 stocks or something like that, but why does it outperform? if you don't make the big bets, no risk, of course you're not going to outperform, so it shouldn't be earth shaking to say that active management is now performing. if you're going to make big concentrated bets, you're rewarded through time, whether the bets are, you know, microeconomic stock picking or ma crow economic like my firm does, make bets. if you're in the middle of the road, you're never going to be rewarded. >> looking at energy, would you buy? >> not yet. not yet. the energy sector was in a bull in the united states. i think we still have the remanents of the bubble, the hangover's there. what's frightening to me is there is a ton and a half of money rate 9 wawaiting on the s of distressed energy. >> way too much money. >> way too

i want to get over to leslie picker who has been working all weekend on this story with so many bidders fdic in the middle of course, janet yellen. tell us about it >> it is historic. it was a competitive bidding process. fast and furious this weekend. the news this morning is jpmorgan chase is acquiring first republic directly from the fdic which seized and sold the bank the transaction is a result of the competitive bidding process. it includes a majority of first republic assets. including $173 billion of loans and $30 billion of securities. specific terms for first republic underwater assets are not known yet. we will learn more about that in the next few hours the fdic and jpmorgan chase entered a loss share agreement and recoveries from the first republic single family and residential and commercial loans if purchased jpmorgan chase will assume $92 billion in deposits. that includes the uninsured deposits from the ma march agreement to contain any contagion from silicon valley bank and signature bank. jpmorgan chase will repay the deposits from the large banking peers. first repub

a stock picker's market.u will have to do work and figure out, you know, which equities are great and which are not. not frankly unlike what has happened in the last year. >> and so joining us a deputy cio of multiasset solutions at goldman sachs asset management. i don't know if you had an opportunity to hear what he said, he thinks it will be tough sledding luns you are an individual stock picker. >> and we think that it will be a more difficult environment but that there is plenty of opportunity to build long lasting good portfolios. and right now we're in the middle of our alternative summit and we're just really excited to see people saying that they will keep consistency with their private allocations. and when you 1k3eyou expect the unexpected, a great place to provide returns and in a more difficult environment. >> and so when you look at the private allocations right now, how much of that is being becoming a credit business versus an equity business? >> it really is up to the individual investor. but

. >>> coming up, we have leslie picker on reports of m&a deals.e has the update on which ones. >>> as we head to break, a look at yesterday's s&p 500 winners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. deadline in five! finished and sent. [sending swoosh] we have tight turnarounds. at&t business helps us deliver. okay! client wants his head bigger. wow, fast response. sent! okay, oop! even bigger. sent. [sending swoosh, notification alert] still bigger. okay, yeah i'm not doing that— [typing noises, sending swoosh] i think it still looks good! [notification alert] oh — even bigger. >>> good morning. welcome back to "squawk box. we are live from the nasdaq market site in times square. take a look at futures. red on the screen. nasdaq off 86 points. there is this, folks, banks set out to close a banner year. the sector supportis up 20% hea into 2025. the conversation on banking is deregulations which another word is merger, merger, merger. leslie picker joins us now with the

>> leslie picker will be with us.we will look at the s&p 500 winners and losers. >> whyidt u ller dn'yoca h? >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. but all you did was plug it in, you didn't do anything neither did you exactly exactly exactly exactly impressed? honestly, a little exactly (slurp) ♪ ♪ ♪ ♪ at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today. >>> welcome back to "squawk box" live from the nasdaq market site in times square. checking the futures this morning. they're weak. not that weak, but some trepidation, you might think, after the entire week's been weak. i keep saying weak. there is a big jobs number coming and there is a bit of anxiety about that after adp and after some of the other metrics that we've been watching the past couple weeks. we'll know by 8:3

. >>> leslie picker joins us now with some other highlights of delivering alpha it started at about 80 and went straight through. >> a lot of highlights, cautious sentiment surrounding equity evaluations. leon cooperman of omega advisers was more optimistic saying the stock market is fair, it's in line with earnings growth, and he said that we're returning to normalcy and that bonds are in a bubble but stocks are not. >> it was a little bit like somebody had a foot on the throat of the economy, that foot has been taken off the throat of the economy. people are more optimistic about business outlook i think i constructive you have to be careful we don't become too xexuberant in our valuation of the future. >> he gave some picks, first data, hess, wpx energy >> he did say he's thinking there could be a 5% to 8% pullback at any point. >> he did say earlier in the year he expected equity evaluations to be flat for about six months he talked about different risks to the geopolitical risk was a big topic of conversation we saw however as we heard about geopolitical risks and tax reform, mar

. >> stock pickers did great last year, and if you take a look at the overall markets, they did beatexes we always talk about how warren buffett has a bet about ho passive investors will always beat the hedge funds, and then generally they're right. last year if you take a look at the numbers, it's pretty compelling this is christopher harvey he and his team take a look at large cap fundamental stock pickers, the big mutual funds, like the contra funds of the world, fidelity. they took a look at the biggest 50 out there, and they figured they outperformed their benchmark large cap sbeks by 2.3%. small caps underperformed large caps, but small cap stock pickers, the manager who's get paid to outperform actually outperformed by almost 3%. pretty big move there as well. a couple of the things to watch as we approach 2018 in in the bulk of it, value versus growth. that was a big theme last year if you take a look at the russell 1,000 growth versus the russell 1,000 value indexes, you'll see a big amount of outperformance growth, 33%. value, 12%, 13%. that's massive we'll see if that cont

leslie picker, thanks. appreciate it. joe?>> andrew, thanks bets being placed on the 2020 presidential election according to predict it. president trump has a 40% chance of re-election joe biden stands at 60%. the outcome of the race will have a big impact on the market and the economy. joining us now is ed mills, senior washington policy analyst at raymond james and don snider, economist on the policy research team at cornerstone macro. both of you gentlemen have all kinds of data and historical metrics on how incumbents win and it almost always has something to do with the economy prior to the election. and it's the same as this time, ed, but we have no idea what the economy is going to look like. it's only 120 days away so it's unprecedented. how do you make any determination? >> yeah, i think it's a great question, joe. what we're looking at is since the great depression, every single time the economy has suffered in the two years running up to the election, the incumbent president has lost every single time that it's been

so, greg, you're saying this makes it more of a stock picker's market.the companies where the performance stories is in the earnings growth. multiples will be where they're at that's where you go. >> i'm sorry we have an early out today we had some other things going on probably good that we're not going to be a able to talk anymore about the party. we'll have you back. we can do that whenever we want, i think. thank you both that's it for "squawkbox" today. anewdr and becky joining us tomorrow "squawk on the street" is coming "squawk on the street" is coming up "squawk on the street" is coming up every game changer every "how'd they do that?" starts here the blank page artists and writers know the tyranny of it well but so do developers, data scientists, ctos the new creators to them, we say let's create something that changes everything ♪ ♪ ♪ ibm let's create >>> good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber. carl cramer is on assignment retail sales crush estimates after last month's drop. best core nu

. >>> plus, it is a stock picker's market. three ideas from a top money manager. first, as we head to break, take a look at yesterday's s&p 500 winners and losers. ♪ ♪ my baby drove up in a brand new cadillac. ♪ ♪ my baby drove up in a brand new cadillac. ♪ ♪ look here, daddy, i'm never coming back... ♪ discover the new spirit of cadillac and the best offers of the season. lease this 2015 standard collection ats for around $329 a month. >>> good morning. welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. today is being called giving tuesday. it's said to be the charity world's answer to black friday. small business saturday and cyber monday are all among these named date now and everything else these days. technology is playing a huge part. you've got the app that let's you track giving when you point a smartphone at a a dollar. usa today compares it to a thermometer for measuring donations. >> point it at a dollar and what? you don't get it, either? >> point it at a dollar and it -- there you're giving charity

i'm brian sullivan with leslie picker and mike santoli.re show, is off today. and tomorrow. >> we're here. >> but we are here. i'm glad to see you. how are you, leslie? >> it is fun. >> it is funnish. >> i'm glad to see you too. >> it rained last night. times square is glistening and shiny. >> ready for that ball drop. >> i am annoyed. i know they're cleaning it up for new year's eve, they're getting everybody out of here, but my guy, the lovely egyptian dude that works the coffee cart here, it chased him off. i guess for security reasons, but if you're out there i miss you, come back. >> maybe he's enjoying a well deserved break as well. >> he was here yesterday. i don't think so. but i don't know. anyway, it is amazing. times square has changed a lot in the last 24 hours. >> spiff it up, get it ready, this is the super bowl for the times square people. i know somebody who used to run the whole program, the entire year is built around -- >> the entire year. >> there was a post article about how applebies is selling seats for $760. >> what

"squawk box" coming right back >>> we bring in leslie picker for more on goldman's quarter.first blush, helping the dow out. >> yeah. the market definitely reacting positively it's a pretty large beat across the board here, just kind of digging through these numbers and comparing them with the estimates. it would be on both the top and bottom line. they had a very strong ficc income that saw v 5% gains year over year that's largely driven to all of the volatility we've seen in the fixed income markets, commodity markets. they did have some low revenue in mortgage products that's had an impact on some of the products but huge beats in terms of analysts' estimates. the street was expecting 5.6 almost a billion more revenue just in that global markets group alone, which was 32% higher year over year. equity is higher, but not as thick. consumer wealth management saw a big jump in the quarter, 25% higher here were some of the offsets. here's what we saw i-banking, investment banking, which we've seen across the board, 4% loyer. they say corporate lending was actually significant

leslie picker has more on the me meltdown >> that's the only way you can december skscribe it. after-hours trading an obscure exchange traded note used to bet against volatility came tumblingitumbling i down, crashing 85% it's called xiv and held largely by creditsuisse. its p in the after market, xiv continually traded well below that a source told me last night that credit suisse was still deciding whether to call the etn. the source also tells me that the firm's more than 33% stake is completely hedged still, concerns that credit suisse would have to write off its position sent shares of the swiss bank down 7% in ho after-hours trading. credit suisse did issue a statement saying activity is reflective of today's market volatility there is no material impact to credit suisse. the crash to xiv was mirrored by pro shares xvxy which also trays inversely to the vix >> leslie, what does any of that mean >> the best way to look at these things, they're like a bond, an obligation, a note this is not an etf they get bundled into the same structure. this thing did exactly what it was

let's get to leslie picker with the numbers.. >> reporter: andrew, shares moving a little higher on the numbers this morning. posting a beat on the top and bottom line for q3. you see shares up .7%. revenue at $25.3 billion. a slight beat on the fully taxable basis. eps beat by 8 cents per share. coming in at 90 cents per share. net interest income for loan making rose to $14.5 billion. deposits were higher at $1.9 trillion. still one-third above pandemic levels. q4 2019. expect to get attention on the updated marks of the held to maturity portfolio. thr those are $131 billion in unreal eyesed losses. this is the deposits that they accumulated during the pan democra demic. the size and scope of the portfolio has caused the stock price to lag peers. executives say the losses won't ever be realized. credit costs with bank of america taking the provision expense of $1.2 billion. up from q2 and slightly higher net charge-offs. still lower than estimates. we saw this trend last week as well with the big banks reporting. as for the in

but he was a stock picker. he would buy, sell. he was a money manager like that.you bought longest ago? because you guy things and then you sort of are a business operator. or you put management who knows how to run your businesses. you're not buying and selling stocks with the intention of taking a profit on a stock. that's why i think you are different than peter lynch. >> peter was very, very good at what he did. >> he was a money manager, stock picker. what's your oldest? you had coke for how long? i'm sure you had things longer than coke. >> we have had that for 41 years. and we have had coke since 1988 in 25 years. >> that's buying a collection of businesses and operating them. maybe not operating coke. he bought a lot in. >> i'm putting warren on the list for two reasons. >> that's where i differ with you. >> the buying hope strategy which clearly he represents. and the second piece is the corporate values. you are rolling your eyes. we can talk to warren about that too. i have a different question for warren, which is this. do you think an investor who wen

leslie picker has more on the story. >> that's right.ing firms like iss that advise shareholders how to proxy -- the gompbs reform and transparency act would require proxy advisory firms to register with s.e.c iss and the council of institutional investors say this bill would be harmful for investors. they're launching a website to urge american voters not to -- by giving companies the right to review research. investors may not their reports in time to make decisions and it could slant in favor of the companies in contested situations the u.s. chamber of commerce and business round table, those two groups representing corporate america may have been big proponents of this bill. representative sean duffy who introduced the bill told cnbc in june that proxy advisory firms need additional oversight to prevent abusive power and monitor interest >> continuing this conversation is ken birch good morning to you. >> good morning. >> so i have to admit, i'm conflicted on this issue there's one element of me that thinks these firms do have too mu

leslie picker joins us she has more on the story. leslie >> reporter: hey, becky.the lead ipo underwriter. a few hours from now pell lleyton's executives will be here with the firm's sales force with how to hone in on how to market the deal to investors this is effectively the start of the road show where the executives will travel the country over the next two weeks seeking to sell more than a billion dollars worth of stock to investors in this ipo they set a price range last night that values peloton at about $8 billion their pitch will focus on a few key areas. high retention of users. the stickiness of their product. what they call essentially addictive fitness. also they say their model is vertically integrated. they control the end-to-end supply chain whether it's the media, software, delivery of bikes to homes and so forth. also, they say for investor purposes they've got a very predictable revenue stream as well as margin expansion that should be somewhat easy for investors to model out now it's worth noting, guys, that comcast, the parent of cnbc, is an in

leslie picker joins us now with the highlights leslie, i'm writing a letter i want to get this publicity larry fink i can write with a letter. i may not talk about the same stuff. >> you could write a letter. make sure they spell your name correctly. >> right >> joe with a "j." makes sense. >> that's right. >> to your point, dimon releasing the letter to shareholders he has a number of factors that may increase the risks ahead these factors include strong u.s. economy and high inflation and the war in ukraine his view of the economy was relatively positive. he describes the consumer as in excellent financial shape on average. consumer spending is 12% above pre-covid levels that segues into the monetary policy the stronger the recovery, the higher rates that follow i believe that this could be significantly higher than the markets expect according to dimon the stronger the quantitative tightening he believes this will cause consternation in markets the war in ukraine and the sanctions on russia at minimum will slow the global economy and it could get worse more sanctions could be added al

there's two sides of the canine. >> leslie picker with the beginning i think of something that we'ref, appreciate it very, very much. joe. >> thanks, andrew. >>> opec projecting the global oil demand will rise to 110 barrels per day by 2045. that's an increase of 23%. that is staggering joining us now to talk about this and the turmoil in russia and the risks to global supply, em rita sen, energy aspects founder and director of research i saw something earlier too that fossil fuel contribution to the global energy, which is going to rise 1% energy usage this year stuck at 82% all the renewable progress that we're trying to make has not moved the needle one iota versus what fossil fuel at 82%, and now we hear this we better keep drilling, amrita. >> yeah, and i think this is the biggest challenge we have, right, just the lack of education among people who keep talking about oil demand has already peaked or is about to peak the reality is when you have emerging market nations growing just generally, oil and energy demand is synonymous with economic growth. sure, we can talk about not r

let's get to leslie picker. >> goldman coming in at 870 a share.7 billion for q3. goldman's banking and marketing division up, and that is thanks to debt underwriting and secondary offerings. the bankings backlog did increase overall as well. equities were up 18%. asset and wealth management net revenue was $3.75 billion in the third quarter, 16% higher than last year and 3% lower than last quarter. goldman generating equity, and one thing to note, there was a 62-cent hit including because of the transitioning of gm card. this morning an agreement announced to be the exclusive owner of the card in terms of the arrangement were not disclosed. a big beat for goldman sending shares up more than 2%, guys. >> good job. thanks, leslie. i like this system. "squawk box" will be right back. keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. your record label is taking off. but so

leslie picker will join us right now with more. >> hey, becky. the market liking what it sees.arly 3% on these numbers. let's get to the fourth quarter. reporting 1.43 per share gap earnings. you can see up about 2.6%, those shares. on the top line, that was a miss relative to estimates, a small miss, 24.4 billion for the fourth quarter. that was down slightly year over year. but i think what has the market excited about this report is the net interest income guidance. because they are saying, and this is new information, they expect 2025 net interest income to be 1 to 3% higher than 2024 net interest income, which came in 47.47 billion dollars for the year. that's because throughout much of 2024, we were seeing negative growth in net interest income for the firm. for example in the fourth quarter, wells reported $11.8 billion, down 7% year over year. so perhaps an upturn in net interest income here. noninterest income, as has been the case for wells, up 11% year over year. although missing estimates slightly. investment banking fees up 59% year over year. investment advisory a

leslie picker joins us. gratefully. leslie? >> good morning, joe.. both trading higher this morning. noninterest income largely up across the board. at wells fargo investment banking fees up 37% in the quarter, while gains from trading activities were up 14% compared with last year, a similar story at jpmorgan, investment banking fees were higher by 31%, while markets revenue also higher thanks largely to equities. net interest income, the profitability metric from loan-making, somewhat mixed. that was largely expected. wells fargo showed a slight miss and declines of 11%. but held pretty steady on guidance there. jpmorgan beat consensus on nii and saw year over year gains despite some deposit margin compression. as for how banks are preparing for the future, well, wells fargo set aside $1.1 billion. that was less than analysts expected. the bulk of that from net chargeoffs. and ncos declined from 2q. at jpmorgan, provisions were higher than the street expected, though ncos were lower. jpmorgan opted for a billion dollar net reserve build in the qua

hedge funds were able to put up impressive returns in the midst of all of this volatility, leslie picker some defining attributes of those funds. i know where you're going with some of this, leslie anyway tell us about it well, maybe, i know one guy who did really well, and i don't know, i have my own feelings about how that happened. but anyway, go ahead. >> well, those that did put up some of the best returns this year tended to be equities focused with a human at the helm rather than an algorithm and were often times smaller in size, interestingly. stock pickers had a come back year, according to hfr funds that focused on energy, health care, and technology stocks are on pace to actually beat the s&p 500 in 2020. funds like tiger global, light streak, pro 2, d 1 and dragoneer have been some of the standouts. smaller funds did better because on a fund waited basis, the average return for the industry is about 7%. on an asset weighted basis, it's negative 1.7%. that's thanks in part to some larger oriented funds in the red this year. think of names like renaissance and winston. still, t

we'll get a special report from leslie picker at 6:30 eastern time [ whispering ] what's this?h, are we kicking karly out? we live with at&t. it was a lapse in judgment. at&t, we called this house meeting because you advertise gig-speed internet, but we can't sign up for that here. yeah, but i'm just like warming up to those speeds. you've lived here two years. the personal attacks aren't helping, karly. don't you have like a hot pilates class to get to or something? [ muffled scream ] stop living with at&t. xfinity can deliver gig to the most homes. >>> the christmas tree in rockefeller center >>> other news to bring you -- it's not good for new york city. goldman sachs considering planning to go to florida and create a new hub there for its asset management arm according to a bloomberg story and saying that executives have been scouting locations in south florida, speaking with local officials, and exploring tax advantages goldman is also looking at dallas where it has been expanding, as well other investment firms have been increasing their presence in florida, including bla

. >>> later, ceo ted pick is going to join leslie picker on "squawk on the street" as well. >> that'se confusing. investors keeping a close eye on the chip trade, following yesterday's big market cap wipeout. u.s. chip stocks right now, you can take a look there, nvidia up, lam, applied materials, asml holdings all down, asml down close to 4%. >>> shares of luxury group lvmh under heavy pressure, that stock off 4% after the company reported a 3% drop in third quarter sales. revenue came in at $20.8 billion, but that was a 3% pullback in growth from the same quarter a year ago. we talked to bernard arnault over the summer in paris around the time of the olympics about just some of the challenges in china and how that is impacting the business and you're seeing some of the impacts out here. >> yeah. i was impressed that you went one for one with him with your wardrobe too. you weren't the slightest bit -- you didn't feel outgunned, i don't think, did you? >> no, the other thing that i missed was that i own a dior suit and i forgot to bring it with me. >> you had, like, 12 outfits over t

we have leslie picker with the latest on that leslie >> good morning, becky the voter choice programy are a year into the program and something that chairman and ceo larry fink says is part of the revolution in hair sharehol democracy. he is providing an update in a letter that we obtained. the goal was to give blackrock clients and state pension funds and endowment to vote on behalf of the stock they hold in each index. voting decisions, including matters as board composition and executive pay and disclosures ra around esg was outsourced to blackrock's stewardship team 25% of the $1.8 trillion in eligible assets are enrolled and the number of clients interested has doubled this year. this is the visible response to creiticism that they have becom too powerful and has an esg oriented agenda. republican state controlled treasurers have pulled from their state funds and efforts run counter to local politics and fiduciary duties pl blackrock is committed to choice and delivering the best outcomes becky. >> this has been so interesting. obviously this is something blackrock did a year ag

we moved from a beta play now to more of a sock picker's play. we're in that part where we're transitioning. with respect to greece the real question is game's up. is it game over? and the fixes are pretty straightforward here right? they need to cut a deal. and without a deal it's over right? they're out of cash. >> right. we'll compaq to some of those stock picks that you might like in a little bit. but let's focus on greece right now. we know the deal has to be cut. where do you think the market stands in terms of expecting a deal or anticipating things might fall apart at the last minute? >> the base case is that a deal gets done. it probably won't resolve the major issues of labor reform and pension reform. it will probably be an interim deal that buys them more time. and i think you see that reflected in the rather come place complacent equity markets in europe right now. yields are moving higher particularly in greece so it's starting to make some people nervous but we're going to find out in the next as you pointed out earlier in the next

apparently there is going to be an ipo leslie picker joins us >> that is not why i'm here, joe.e can talk about ipos if you want >> no, that's okay we're delivering a public offering of great -- >> content throughout the day, exactly. >> delivering alpha. >> no one ever said the ipo had to be a stock that's trading >> someone said pence might be here >> that's what i heard that's what the rumor says, and starting in a couple minutes actually >> v-potus, exactly. it will be a jampacked day, though, high profile important conversations with investors, politicians, economists, first up sec chairman jay clayton will join the stage with andrew they'll be partly cloudying private versus public. maybe ipos, joe. public debt. the conversation will expand yountville the u.s. to investors like j.p. morgan's mary erdos. after that there is a whole panel focused on tech investing, another with activism with nelson peltz rounding out this morning a stock picker's panel with leon cooper man and joe's much anticipated fire side chat with v-potus mike pence other notable speakers apollo co-foun

as we talk about the winning trades out there, we say active stock pickers are not doing well, passivendex managers are beating them, but if you looked at some places where these divergences are happening, it could tell you more of the story about whether or not there are reasons to want to be a stock picker, especially if the market seems like it's at a record level where it can only go higher as things maybe pull back a bit, because we know they do, then those active stock pickers get back into the fold and outperform a bit >> we have to talk about these yields, i think. don't you? >> multi-year highs. >> waited forever. got the jobs report coming tomorrow what if that's strong? >> what about earnings number. >> and oil wage gains might be starting pi day is my favorite. >> 3.14. are there any others you got ten-four, ides of march. >> 420 you said. >> what's that >> i don't know. april 20th >> for more on the markets let's bring in scott kimbell from bimo fixed income, and jeff corznik scott, this is the -- what everybody will be talking about. we'll have warsh on, kevin warsh. when

leslie picker is looking at the potential default and what would happen to bond holders >> reporter:rning, melissa. the prospect of the first default in more than a century sent yields soaring as they weigh the likelihood the country is unable to pay interest owed next week due to sanctions bond funds with russian exposure are seeing out flowing marked down as the result of the sell off in prices. the market funds with the highest percentage in russian debt are voya and pimco and american morning funds pimco with $1.5 billion of russian bonds at the end of 2021 and about $1 billion of contracts that pimco needs to pay out to other investors if russia defaults. losses on securities particularly in pimco income fund caused it to slip 5% this year under performing the benchmark where it was out performing the benchmark. i'm told that the firm had long-term exposure to russia and the strategy was not tactical in nature it represents the under management pimco managers have limited exposure to russian bonds. russia has $40 billion of dollar/euro debt. it is unclear what rights, if any, bo

>> and then i mean, it's a cliche, but then you're going to have to be an old fashioned stock pickersam which we can talk about. 60% of our debt matures in the next three years. a lot of companies are better able to deal with that that are able to manage themselves well. there have been an awful lot of companies built on the free money we've seen. >> let's do the fed and then we'll do the fiscal side. you know, joe thinks that powell will hang out a mission accomplished sign in jackson hole. >> that's what i'm worried about. >> victory. >> yeah, how'd that work? >> i'm -- if you're asking me what my view is, especially with long-term interest rates backing up, that's also going to -- that actually helps -- >> that's helpful. i would be careful about the mission accomplished idea, and the reason being is that my -- one of my partners our chief economist looked at 2,000 years of history, to the extent you could find that history of inflationary periods and what we found in all but 15% of the times, inflation tends to come in waves, and there are reasons for that, and i would say that's

leslie picker has that story next., first got to be good tennis players, then be a star, brad gilbert joins us to discuss the business of tennis and he loves talking about stocks. investing for decades. "squawk box" will be right back. >> announcer: time now for today's aflac trivia question. 53, atstarting production in 19wh is the only year the corvette wasn't produced for the public? the answer when "squawk box" returns. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪) what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. >> announcer: and now the answer t

today the delivery company pricing its shares at $102, above the revised target range and leslie pickerining us with the latest. >> that $102 level doordash is raising $3.4 billion, that is about half a billion more than the company initially sought to raise after hiking the range and then pricing $7 above that boosted range. the ipo price gives doordash a market cap of $32 billion and fully diluted valuation of $39 billion, that is nearly 2.5 times the company's valuation from a funding round just this past summer. there is no denying that food delivery has become a bigger part of americans' lives during the pandemic induced restrictions on restaurants. and doordash has disproportionately benefited reaching number one market share in online food delivery. look no further than their top line which nearly quadrupled in the third quarter, along with gyme er glimmers of profitability over the spring and early summer. but of course there are risks. doordash notes that it may not keep up with this pace of growth and that it has a history of losses additionally the food delivery industry is f

so that's really kind of the winners and losers of a stock picker market.lth care, also probably somewhat policy driven, where 14 companies have downgraded. only four have upgrade. it's a mixed market, becky. i think it's going to have to see after this quarter if we start to see earnings pick up again. from 2017, we're at $131 in earnings. we started the year at 133. investors are at $147. that's a big leap of faith for 2018. >> it does take two sides to make a market. i think we have multiple view points expressed here today. karen, you think earnings are doing pretty well and justify a lot of the gains we've seen and potentially additional gains to come, right? >> right. i saw 5% growth for the fourth quarter and 10% growth sounds pretty good to me for the first quarter. right now we're in a reflation trade, but we haven't actually seen any new policies from the administration. there's a smorgasbord of policies that could really boost earnings. any kind of tax reform, any kind of change in regulations, repatriation, any kind of immigration reform, new en

and the dplcomments from mani and buffett come after jamie dimon said yesterday he spoke to leslie picker about the fitch downgrade. >> it doesn't matter that much the markets decide not the rating agencies. number two, they point out issues which we knew about with the debt ceiling crisis. number three, most importantly, the american public. this is the most processed nation on the planet it is the most secure nation on the planet there are other countries rated higher with aaa, but they live under the american enterprise military system. that is ridiculous >> more on that dimon interview throughout the morning, becky. it is a different tone from what w we are hearing from joe manchin. >> i don't think there is much difference with buffett and jamie dimon and joe manchin. i think if the three were in a room, they would agree on the points dimon and buffett can say the market will continue to operate as normal, but buffett and dimon wants washington to address the issues buffett does an agree with everything washington is doing right now. he made the comment that congress can only screw t

leslie picker is joining us. >> reporter: gobbling up community banks at a record clip. rural america for those without access to traditional banking. throughout the last century, credit unions have operated as non-profits exempt from most taxes. recently, they scaled to the point where they are buying billions of assets of community banks representing a quarter of deals. the tax-exempt status gives them an m&a advantage and the scale no longer justifies the taxpayer subsidies. >> there's just something wrong with what are essentially non-profit organizations buying tax paying customer and profit-making organizations. i think it's time to reevaluate the tax exemption that credit unions now have because they are no longer the self serving or membership serving organizations. they're growing and expanding and essentially commercial banks. >> reporter: the credit unions say the tax-exempt status allows them to charge less for loans and pay more on deposits than traditional banks. doing away with the tax-exempt status would have impact on the gdp and jobs. the administrator

leslie picker, thank you.. >>> coming up, what should we make of president-elect trump's comments on taking control of greenland, the panama canal, canada? we will talk and get -- we're going to get axios' take. mark caputo is next. >>> as we head to break here is a look at major currencies around the world. "squawk box" will rhtac beig bk. >>> meantime, president-elect trump renewing his call to gain u.s. control of greenland, also the panama canal, maybe even canada. yesterday he declined to rule out using military and economic coercion to achieve those goals. joining us right now with more on all of this mark caputo, a senior politics reporter for axios. good morning to you. we were debating a little bit of this earlier in the broadcast, mark, and i think we're all trying to figure out how much of this we're supposed to take seriously, how much we're supposed to take as sort of trump doctrine, negotiating posture of sorts. how do you view it? >> one of the things that was said in 2016 is not to take trump o

tough, tough. >> thank you >> leslie picker. >>> coming up the triple threat in the oil market.ted in all sides. how low could prices fall? >>> later this morning do not miss top white house economic inviser larry kudlow, he will jo "squawk on the street" at 9:00 eastern that is a must-see interview we'll be right back. can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. >>> welcome back to "squawk box. take a look at futures we've had a pretty volatile morning if you will. we've paired our gains by about half in just the past 15 minutes or so. the s&p 500 looking to be up by about 8 points at this point, nasdaq looking at 33 and the dow looking to be higher by 85 points we had been as high as 170 plus on the dow jones in terms of indicated open. >> okay. >>> one of the sectors most affected by the wild currency swings we've seen to start the week is energy and brian sullivan joins us now. what to -- what we're seeing in the oil m