with goldman sachs shares under pressure, some are placing the blame on lloyd blankfein, the ceo. dick bove, an influential bank analyst who is calling for the ouster of mr. blankfein. >> in the last year or so i've been write the about the lost decade if you go back to 2007 the company was making more money than it is making today. over the last five years, revenues have flat-lined, they've not gone anywhere. not only have they flat-lined, but by 2016 if you were saying the average was around $33 billion, $36 billion a year, they couldn't even do that so far this year they're not going to do what they did in 2016 and the reason for the problem is that they made a business decision ten years ago, which is that this market is going to come back. well, it didn't. and the fact of the matter is that instead of taking moves the way morgan stanley clearly did, the way citigroup did, the way a number of other large bankers have, this company has simply gotten more and more insular it is a private company that's running under a public -- if you will -- name this stock sold at $250 back whe

sachs: coming up, goldman faces its worst performance since ceo lloyd blankfein took the helm. we take a look at today's bank earnings next. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. disappointing quarterly results from goldman sachs and bank of america. vix income trading for goldman sachs, down 40%, making it the worst first half of ceo lloyd blankfein's term as ceo. think of america's interest -- bank of america's interest in decline after failing to capitalize on a fed rate hike. i don't want to completely malign the banks. there were some bright spots. >> look overall, they are solid. they are generally beating expectations. in general, they are making progress on overall revenues and keeping costs under control. most importantly for investors, credit continues to be under control. vonnie: what is confusing for investors is that the disappointing areas where the core businesses. would it be better if the losses came in peripherals? >> it sure looks like the market was looking for loan growth and interest expansion. it seems like each bank has disappointed on

they describe a character a lot of people maybe don't associate with lloyd blankfein.ob: you think of ceo's and bankers as these austere people, that he had a very positive energy. without him smiling and laughing. it was great. oliver: and he still has the beard. we are going to talk with john about his story on brussels. tell us about the international cover. rob: it is largely about the o,ropa, the eurozone -- eur the eurozone and how they are doing well after brexit. all the stories are pretty much holding hand. it is not -- when you hear about brexit, there is a lot of negativity. but there is an upside. oliver: unison coming out of it at the end of the day. up next, brussels bureaucrats get a second wind. and how companies are using electronic dancing to reach young consumers in pakistan. this is bloomberg businessweek. ♪ ♪ oliver: welcome back to "bloomberg businessweek." you can catch is that business week.com. -- is leading to a bit of a rebirth in brussels. >> they are really two big reasons why brussels is suddenly back. one is brexit that fundamentally rath

oliver: turning lloyd blankfein into the cover model was the work of this writer.hot, we got exactly what we needed with him at the goldman offices. we had some great options. oliver: he is a busy guy but in the end, the pictures look fantastic. they show a character that a lot of people don't often associate with lloyd blankfein. >> right, he had his very positive energy, we were smiling, laughing, it was great. oliver: he still has the beard. we are about to talk with john micklethwait. >> the store is more largely about the eurozone and how they were doing well after brexit. you can see the flag but all of the stories are about holding kumbaya. some by a -- there is a degree of unison coming out of it at the end of the day. up next, the bureaucrats get a second win. how companies are using raids and electronic dancing to reach consumers and pakistan. this is bloomberg businessweek. ♪ ♪ oliver: welcome back to bloomberg businessweek, i am oliver renick. section, john micklethwait talks about how brexit and the menu macron -- emmanuel macron are leading to a new -

you can read the profile of lloyd blankfein in the latest edition of bloomberg businessweek. we want to get you to bloomberg first word news with mark crumpton. of a adam schiff, the top crowd on the house intelligence committee, says new information on donald trump jr.'s meeting last summer with a russian lawyer "ads another deeply disturbing fact about this secret meeting." congressman schiff says the shifting explanations about the ofting "paint a portrait constant -- consistent dissembling and deceit." a russian lobbyist now says he was also in attendance. of donald trump challenge the that he didllenging not receive the information he was promised. the lawyer brought a dossier of documents that detailed "what she believed was the flow of illicit funds to the democratic national committee. " president donald trump plans to put veteran lawyer ty cobb in charge of overseeing the washington's legal and media response to russian meddling in the 2016 campaign. according to people familiar with the decision, he is intended to be the enforcer of discipline, a public spoke depart

lloyd blankfein with a wonderful cover and megan murphy joins us this morning. it a different gobin or the one we've always mone? >> the same goldman sachs talks about lloyd. we can't understate how improbable it is that lloyd is still the c.e.o. of this bank when you look what's gone on since the crisis, almost personally blamed, a bank that was symbolic of the excesses of the entire industry and personally blamed for shorting the housing market and his own personal battles against lymphoma these come back from and what's interesting is he's a rejuvenated presence in the bank but tied the bank to much of the same business mod tell has in the past. we have earnings starting today obviously with jp morgan coming out and a quarter that's with a lot of volatility. tom: does he miss mr. cone? megan: i don't think there is any missingness between either of them. tom: what about the battle in washington? we talked with kevin surly about this attorney memo. what i want to know is ohio and portman, in the health care debate you've done reporting on heroin, opiods in rob

we have lloyd blankfein up there is we want you to look at that article.the tendency you talked about. everybody was down here in consensus but you weren't. where are you now on sterling? >> i think, we think the u.k. economy is going to underperform. if you talk about we wages, you have them in the u.k. the difference in the u.k. is because of the weak sterling they are seeing some inflation pressures. around 2.5% headline inflation. real wages are declining in the u.k. and that is going to weigh on consumption. we've been looking for sterling to weaken up a little bit. it has been stable against the dollar but if you look at sterling versus the euro it has come down very substantially. that is the u.k. economy underperforming. the euro zone economy, outperforming expectations a little bit. we had a big move in euro sterling and i think in general, we are seeing a weaker pound on every currency except against the dollar. tom: francine, he is making me work overtime. bring up the chart. there is euro sterling. it is a little bit of lira. it is a chart i di

from bank of america and goldman sachs, second quarter fixed income training had the half of lloyd blankfein's> overall trading coming in line was a little worse, but equity is better. there is a little of a trade-off there. there were some bright spots in the quarter. is the lowest cost ratio accrual for the first half in the public history of goldman. that shows they are doing what they can in terms of managing costs. is very tiederica to long-term rates. anytime you see the tenure not doing what we think it should be doing and picking up, that is bad for bank of america. the thing that really sticks out is net interest income for that bank, which is core revenue for something like bank of america. that is something that fell despite predictions two months into the quarter saying we would at least have 35 to $50 million increasing. ♪ after two more republican senators announced their opposition to the health bill proposed by gop leadership, not only is mitch mcconnell's effort to pass that dad, but repeal only and replace later looks like it is a no go, as that, but repeal only and replace l

plus, lloyd blankfein's roots are letting him down as goldman sachs traders deliver the worst stock performance. we are halfway into the trading day, and julie hyman is joining us with the latest. it's only tuesday, and so much has happened. julie: when you get into earnings

is personal for lloyd blankfein because this is where he began his career.they decide we cannot take this anymore, will there be criticism of him for staying in too long for the wrong reasons? >> i think you could see some of that. a lot of people at the top of the house grew up in this business so it is somewhat in their d.n.a. to be in commodities. i think it would be unlikely you would see a full-scale pullback, partly because of that reason. but you could see a lot less capital dedicated to it, depending on what they decide to do and what they see as opportunities. it could be reshaped. scarlet: talk about how this is catalyzed by goldman sachs last quarter. that was a surprise to people. when pressed on the earnings call about what drove that, they gave different reasons. >> i think it was a variety of factors. commodities were definitely a piece of that. based on our report in the second quarter, it was not outstanding either. the whole first half was rough. i think that is driving it. we will see how much is a review that could structurally change typ

. >> or he is taking cues from lloyd blankfein who is on twitter. >> maybe using social media as a waylves and have fun as well there was some talk about how this -- we have never seen jeff bezos with hair. >> i was joking with the jpmorgan team on friday about jamie dimon should join twitter after his outburst they're desperate not to allow that they think he'll get himself in more hot water i think he should get on twitter, it would be enjoyable. >>> salvador dali's remains have been exhumed to settle a court case almost 30 years after his death, a paternity test will be performed to settle a claim from a 61-year-old fortune teller who insists he's the only child. the victory would give her a chance to seek one-fourth of dali's estate. amazing what science can do. he died in 1989. >> assuming he did have a will, and gave his money a certain way what does it matter if she's a child or not you can decide to give your money to your children or not. >> do you think they look alike? >> not enough -- i need to see the dna proof to believe it. >> okay. >> i don't know the details. i'm just

'sming up, lloyd blankfein strategy looks a lot like the old strategy. more next.is bloomberg. ♪ vonnie: let's get straight to the news conference in paris. to paris this afternoon and , asrrow, tomorrow morning well as the banking delegation, it was very pleased to be able to welcome president trump. he accepted the invitation i extended a couple of weeks ago in order to invite him to join the 14th of july tomorrow. a simple and very important to the president of the united states called to be with us tomorrow. , toattend a military parade which the american troops will take part. we will be also commemorating the anniversary of the american i withjoining world war the allies in france. because beyond the daily news, we live in countries with rich -- roots that are deeper and go further beyond who we are. the presence of president trump was not only natural, but i think it's also an excellent thing for the history of our country. sharing partted by of our joint history, and the a rmy museum, -- at the army museum, then we had a working session and i'm extremely pl

trading fell 40%, making it the worst first half in that area of ceo lloyd blankfein's term.k of america's interest income declined, failing to deliver on an unexpected boost following the fed rate hike. >> overall, trading coming in line, i think it was a little worse but equity is better. there is a little bit of trade-off. banking fees are also better. investing lending income also better. there were some bright spots in the quarter. on the other side, the cost ratio is the lowest cost rate ratio in the first half for goldman. that shows that they are doing what they can in terms of managing costs in this tougher environment. >> bank of america is very tied to long-term rates. so any time that you see the 10 year not doing what we think it should be doing and picking up, that is bad for bank of america. i think the thing that really sticks out is net interest income for that bank, which is core revenue for any bank, especially for bank of america. that is something that fell despite these productions from brian moynihan two months in the quarter saying we will have at leas

analyst calls for a dramatic shakeup at the firm, including -- get this -- the ouster of ceo lloyd blankfeins begin with kbw's call of the day, a downgrade of goldman. it is to neutral analysts cutting the price target there by $30 as

commodities, forget it, was the worst for goldman sachs in lloyd blankfein's decade run, or worst since they went for an ipo many years ago. so overall the trading environment is difficult. we've seen sectors, financials, materials, infrastructure, health care coming under pressure what we're seeing in washington. how are you both feeling in the long term? are you still believing in that idea of a down payment on the trump agenda? can it happen? tax cuts, infrastructure spending, what you do you both think? gary, i again with you, how are you feeling on longer term for this one? >> the market was basically dormant for two years until the election. i really do he have blow the market is anticipating something, if they don't get something done on tax reform. earnings planning and planning from corporations and businesses go by the wayside. then you have an issue with the market. good news central banks will continue to print money. nicole: jonathan, one word, how are you feeling? >> i feel, i feel fine, nicole. how are you feeling? this is a bull market. until the market tells us otherwis

liz: not because he didn't want to wait around to be the ceo because lloyd blankfein is still there?hat's it too, but this is one of the reasons why. because he believed that the democratic party destroyed goldman sachs' business. it was something -- liz: they're making money. >> they're making money, but still morgan stanley is ahead on market cap right now. that says something. even whatever it is, we'll see at the end of the day and we'll update. liz: thank god you didn't speak spanish today. >> habla espanol. big daddy delgado said i spoke very well. liz: okay. don't speak french. 26 minutes away before the closing bell rings. dow jones industrials up 50 points. s&p, nasdaq on track for new record closes. >>> coming up the senate may be struggling with its obamacare reform plan but the house says, so what? we're plowing ahead with other items on the trump agenda the. the republican who proved he can work on a bipartisan basis, yes, with democrats on improving obamacare. can he work his magic again when it comes to tax reform or the budget? republican congressman rodney davis of i

[talking over each other] anyway, be sure to tune in wednesday morning as goldman sachs ceo lloyd blankfeinoins us live at 830 new york time. don't miss that interview. plenty more to come. from new york, this is bloomberg. ♪ shares ofscarlet: pandora are down sharply today. better than 5%. abigail doolittle joins us now for the stock of the hour. abigail: this is really a continuation of what we have been seeing over the last year. stop down more than 30% over the last year. i did reach out this afternoon to a bloomberg intelligence analyst. this is coming down to competitive pressures from amazon, alphabet, and apple. a have been pumping of music in a big way. g #btv 8548.k at this is a chart of pandora. see the stock has had a wild ride, at one point, up in a big .ay by more than 40%. and in blue, we have the revenue growth year-over-year. investors simply not investing for that. it tells the story more of a macro standpoint. what are the metrics people want to see at this point? abigail: investors are looking for a loss of $.25 on 367 million. this is a great function on the bloomberg.

i mean, if this happened in corporate america, if lloyd blankfein were at the world economic fornumb davos talking about how goldman sachs used the world and what they're going to do next and if meanwhile at home all the managing directors within his bank were doing the exact opposite, it would be off with their heads or his. we're just going to take this as, well, he didn't do his homework, they're disconnected. seems more complicated than that. >> there is the whole separation of powers issue, but this was pretty egregious from the white house's perspective, late last night, probably shortly before midnight, i was on the phone to a source and asked whether mike lee and jerry moran gave the white house a heads up and the source just started laughing. you know, this isabsurd. there was no community case and the white house was furious last night about the way this unfolded. >> i want to go through this fact check. i know some people have been talking about it today. the president playing up hi track record. he loves to do that. it really works for his base. and i want to share specif

lloyd blankfein actually joined twitter, which seemed to be -- >> on the 1st of june.irst tweet he ever sent at 2:20 in the afternoon and this is about pulling out of the climate agreement. >> today's decision is a setback for the environment and for the u.s.'s leadership position around the world. so this amazes me. it's as though the ceo of goldman joined twitter to actually troll the president. >> remember, at the beginning of this presidency, there were some ceos who told me they joined twitter, never tweeted, they joined twitter just to see if they were being tweeted about. >> their worst nightmare was to wake up to a trump tweet. >>> the department of homeland security will delay implementation of the international entrepreneurship rule which is akin to a start-up visa. this was set to go into effect on monday. it would give foreign entrepreneurs with financial backing already a chance to set up fast-growing businesses in the united states by allowing them to work in this country and build their businesses. they'd have a renewable 30-month visa if they were actua

lloyd blankfein said a mixed operating environment persisted in the second quarter as conditions continued to support underwriting of m and a while constraining certain market making activity. >> lloyd, stop paying -- let's take them apart. they are making way too much money. same time i didn't think there was anything special about -- still got 180-plus book value. they need more volatility. in the same way i thought bank of america's quarter was a great, classic, grinded out quarter. i like that stock very much. sure, that was because the long bond traded where it did i think bank of america distinguished itself as being a company that is 500 basis points of operating leverage of which i like to hear that. they are making more money per customer added a lot of mobile customers. there's nothing to dislike here. >> no. recent dividend increase, capital return plan being improved, warren buffet now, the largest shareholder. >> ibm, speaking of a buffett name actually, it's not really. you're way ahead of me way ahead of me. as for goldman what did they buy back they still bought back, what,

and then we have a special about on ouriting wonderful cover with lloyd blankfein. is the new bloomberg businessweek. must read for global wall street. this is bloomberg. ♪ ♪ johnson in london. tom keene in new york. d wimbledon of the weekend. i just had to throw some sports in their at some point just to balance out other things like game of thrones. gdp increased in the second quarter. it increased 6.9%, beating the estimate of 6.8%. economicsasia correspondent joins us from hong kong. there is a subtext surrounding china, and that is about debt. at the moment, i think this economy is moving along successfully. nothing seems to be going wrong at this point. do you think the chinese are happy? if they are happy, why are we so concerned about risk? >> good morning. i think is on track to interviewed about one third of global growth this year. we are seeing domestic demand. consumption is a big part of the story now. at the same time, authorities know the business model behind this economy. they want to rein in that risk of debt. they don't want to take the kind of