do you accept that, david banks? you accept that, david banks?on of privacy in certain circumstances. circumstances. he argues this is one of them. of them. respectfully, i think we will disagree on that. will disagree on that. think they have any choice but to report it. in your view, why was it? investigations are completed and no further action is taken. further action is taken. will be trialled by rumour, by social media. social media. person being cleared or no further action being taken by the police. action being taken by the police. do you accept that? you accept that? this week, which trumps the other —— two years of torture. two years of torture. will have on media coverage of police operations? police operations? around the word chilling effect, in these sorts of cases. what does that mean? mean? will be a restriction on press freedom. freedom. doing here is trying to decide where the public interest lies. the public interest lies. a little more guidance on how to publish in the future. publish in the future. arrested, let alone charge

david: welcome to bloomberg. halfway through the bank earnings season. were going to say halfway through the week. i was like no, no. david: it is interesting the reaction in the marketplace. a year ago we got these results, it is good news. alix: with goldman and morgan on deck it will be interesting to see how the market response to morgan stanley. how much of a bead to the have to get for the market to be happy about it? david: city and bank of america have set a fast pace. the market, it looks like taking off some of the risk off positions you had over the weekend. s&p futures up. the dollar weaker. the selloff in the bond market continues to pick up speed, yield funding higher in the u.s. by four basis points and getting -- after thethe serious strikes were not as bad. david: you can spend most of the week listening to fed speakers. we will hear from every member of the federal reserve at least once starting today. continuing bank earnings after those bank of america earnings today. it is goldman sachs turned tomorrow and morgan stanley coming up on

european banks up less than 100%. david: you are a chief market strategist. mean there is upside overall in europe? banking is very important to overall growth, particularly in europe, given the role of banks. in europe, financials are around 20% of indices. in the u.s., there -- the ban in the u.s. there is less technology in europe. we are more bullish, because we think rates will move higher. from our perspective, it provides opportunity. alix: that brings us to earnings season. jpmorgan reporting friday. keith: what is unusual about this earnings period is during the quarter, earnings have been going up. in fact, estimates for the s&p are up 10%. ast is more interesting is prices have corrected, valuations at global markets are at two-year lows. alix: tech margins are supposed other sectors except for tech have improved. what happens if a trade war affects earnings? keith: we do not know. let's try to put numbers in perspective. we are talking $100 billion, $150 billion of tariffs. if you think about fiscal stimulus and the pipeline, we think it is about $

they're ramping up risk on a lot of banks are pulling back. david: he was very careful in his interview with bloomberg saying we did not increase our risk, we are shifting our risk. we are betting to be the one european investment bank that is truly global. >> here's the irony. if a bank tries to the risk but still cater to corporate clients they cannot balance out some of the risk they incur by catering to those corporate clients as easily. this is the argument for taking on more risk in other parts. invest in things or use their own money to facilitate corporate bond trading. they need that book of risk to offset other parts of their business. there is a question with deutsche bank. this feels like a shift in strategy despite what the guest was saying. is a significant shift. it is saying our ambitions are materially reduced in the united states. deal and raises questions of how effectively they can cater to the european clients if they knock cannot -- cannot provide them the same type of -- it also raises questions about their capital position. i

bank of america later on. do you are like them? davide: we like both of them and own all u.s. e rates play -- has not materialized yet and in terms of percentage weight we have less exposure and u.s. banks have been our key the last seven or eight years and now they're up with the events in terms of the structural adjustment. logarithm ay the change. tom: good morning. mervin king writing for bloomberg view. this is an important essay and i'll give a heavy feature on this today, from the former governor of the bank of england, the european central bank in germany may continue to impose austerity on the rest of the monetary union. in the end there will be a combination of higher inflation and surreptitious fiscal transfers from germany and the netherlands to the southern members. what better way to stifle this opposition than to have as the e.c.b.'s president a highly respected german central banker. davide, this essay would be another essay but from who it big om, meryvn king is a deal. can the european central bank tricchet, he new the new dawg i had. davide: yes, is he a capa

david: a view of washington for the capital. that is where the imf and world bankome to "bloomberg markets," i'm david westin here with alix steel. alix: tom keene works 97 hours straight and comes back and get sick. david: but he enjoys it. ushy, s&pity market, m futures down three points. euro-dollar flat. dollar mixed on the day. yen weaker on the dollar. mushy on currency. 33 basis points, the spread after touching 29 yesterday. europeanbd selloff in bond market. selloff in beefy european bond markets. outperformance continues. $70, calls for $3000 aluminum, what does that mean for global growth and inflation? conversations through the next hour. today, the:30 a.m. jobless claims. it is thursday. a.m.tine lagarde at 8:45 holding a conference in washington as part of the imf-world bank meetings. we hear from various members of the federal reserve including randy quarles. let's get an update on headlines outside the business world. we turn to kailey leinz. kailey: the trump administration pulling out another argument to support mike pompeo's nomination as secreta

any such increase will be modest and banks have pretty good growth to offset that. david paid to goldman sachs because they are in a transition. what do you expect there? investment banking pipelines are going to be strong. if you look at the announced m&a at the early part of this year, that will begin to close later this year, a lot of financing associated with that. we see a lot of the initiatives laid off in the september conference. -- laid out in the september conference. david: what about forward guidance as we listen to them and their calls? always been to see some deregulation coming out of the fed? whether start to talk about how that could affect them, going forward? jason: in the early days. this regulatory rollback is occurring. there is a lot of talk about what of the house gets that through to become law or not. at the end of the day, the treasury laid out 250 recommendations, of which 200 do not meet congressional approval. we saw that the last couple of days around the stress capital buffer and the stress test. to makeus eight years the regulation a lot m

david: breaking news. deutsche bank has named a new chief operating officer who has been a member of the supervisory board. after the new ceo came in the coo left pretty abruptly. now we've got him coming in. alix: how does he feel about the u.s. equity business? david: that's a good question. alix: reports indicate they could be paring back there equity business here in the u.s. and if they do that what kind of companies does it actually want to keep? >> that's a good question because without revenue you don't have profit. when you start getting out of all of these businesses what is left over? as we saw from jpmorgan and goldman sachs earnings equities is a good business for the big wall street banks. deutsche bank can't cut it here. they are looking to cut costs. you have to wonder where are you going to get this future profit generation if not from businesses that have been wall street mainstays? alix: and who benefits if they pare back? >> exactly. you have to think that other bigwigs are able to pick up even more

it was investment banking that seem to be weaker. david: they were projecting trading to be up but not as much as it was. they really had a very robust quarter. a little bit of a miss on investment banking. alix: fees were lower and you have revenue lower as well across the board. for more, here's allison williams. at first, the stock was over over 1% and we are losing a little bit of steam. what was your biggest take away so far? allison: so far, so good. trading coming in better-than-expected. volatility explains both of those things. is good for trading and not for the underwriting business. the outlook is still constructive so we want to hear on the outlook on the call. the investment bank is a percent and that looks great. -- 8% in that looks great. that's a positive read through for the economy and we will see what wells has to say. citigroup has a different mix. this is probably the most indicative in terms of macros. also looking forward to hearing some more comments and they did map out proposals this week. that is something we're

banks. think it will get done? david: i don't know. i am just a reporter. thank you for being here.ss comments by president trump and french president macron. trade expected to be major topics. we bring that live. this is bloomberg. ♪ ♪ david: this is bloomberg markets, balance of power. i am david westin. shery: i am shery ahn. the nasdaq is that special lows. stocks have been dragged down lower by google's lower results. it is way by material land industrials but financials are up, given the 10 year yield is a touch below 3%, which it topped earlier this morning for the first time since 2014. david: we want to get headlines from mark crumpton. treasury secretary steven mnuchin will be for china within the next few days for negotiations with officials over u.s. trade disputes. president trump confirmed to visit today with the french president. mr. trump says if they cannot find common ground, then his proposal for chinese goods will go into effect. the trip for china will be secretary mnuchin's first as u.s. secretary of treasury. the northern rebels held province could become the

how is deutsche bank going to get those people? davidbanks are trying to become tech companies. that is true of auto companies and everybody else. it is really affected by benefits, maternity leave and things like that out of silicon valley. reporter: absolutely, enforceable work schedules, another one really important to millennial workers, eco-friendly buildings. it will be interesting to see how the banks adapt to become technology companies, or at least compete. david: becky for being here, bloomberg's peggy collins. coming up, ski outings and sausage platters. i can't even believe this as i read it. german companies are scrambling to find qualified workers. more on what i am watching next, german jobs. alix: bloomberg users can interact with all the charts we've checked out today. thev you can look at charts, click on it and watch what we were talking about on tv. these are the charts we think are the most important for you to know today, so check it out. this is bloomberg. ♪ david: we are focusing on jobs, but it is not just u

alix: do you like banks? david d.: we are positive on banks and in general.s ever perfect. everyone would have liked to have seen more organic loan growth but when you look at data quality and the return on capital and the underlining profitability with the backdrop of the more positive tax and regulatory environment, we are overweight in the financial sector. david: what does it tell us about the economy, generally? you can't get the economy going if you don't have the strong space. but now they have a fair amount of money and capital to deploy dave:. dave:that is one of the things that ishave -- dave: what is the things that we have strong economic strategy. the industrial economy and the industrial economy are doing well now. we seem to be in the early stages of an uptick in the bank lending i was talking about. so it supports the notion that we have a strong and sustainable economic expansion. our view is that this year will end up being better on the economic growth front even than the consensus. bloomberg consensus is 2.8% for real gdp growth. we think

it is a marginal change, but it also does make the cost ratios look higher for the banks. davidout your point of view? why isn't there more of a reaction because in the ficc area, they really did well unlike the other banks and that is what you turn to goldman sachs for. burns: ficc is exactly what people have been looking for when they look at goldman. this is a situation where if you look at the readthrough's from other banks, i would've expected that at some point, the ficc business should rebound for goldman. this is something that relies on high interest rates and even higher volatility. based on the readthrough's for jpmorgan, this is going to rebound at some point and this is not the quarter for it. that certainly speaks to goldman. their strength is the fact that this rebounded so strongly. i think it could just be a reflection of the entire market. equities across the board meeting or beating expectations and likewise, it could just be that the market -- this is the markets way of saying this is just one quarter, show me again. goldman should be well-positioned when you

what are you expecting jpm and the rest of the banks to say how tradable has this volatility been? davidically, banks have the back off volatility. keep in mind, they have two core base -- businesses. trade volatility, and a carry trade situation they tend to be long. higher yield and funding at lower cost, that net interest spread they end up with. making a deep comment on that is not my core expertise but in benefit they should from these types of volatile markets. the only thing that is lacking is true volume on the back of these and they thrive off of volume because they get paid on the volume path. matt: let me ask you what kind of assets you are interested in. what do you think is the best lace to be invested for 2018? we have been increasing our overall exposure to volatility type strategies. managers that benefit from that, global macro strategies -- we think that is an area we can benefit from this year. another one is the event driven space. you look at the dry powder the private equity community has $1 trillion in buying power times two or three, that is a $4 trillion cache of

what big bank can benefit as european banks have to pull out of the u.s.? david go investment banking in china, which is a relationship business, you have to have people with relationships. it is easier said than done. sonali: and wealth management as well. it dominates this market, but camp jpmorgan take more -- can jpmorgan take more share? alix: you end up having short-term rates -- a real rate that will help u.s. banks. the issue for european banks is regulatory rate and -- can the ecbdibly, hike if the u.s. enters a recession in 2019? the market is expecting the deposit rate gets to zero and economists are calling for the deposit rate to be zero by the time mario draghi leaves office, that kind of passes the buck. that's generally a more dovish outcome rather than a hawkish outcome. david: could the differential between the european central banks and the u.s. affected the economy in europe versus the united states? in europe companies have been dependent upon banks as opposed to capital markets. does that limit the growth potential for europe? stewart: i thi

banks it may mean less. this is a proposal that will be out for the 60 day comment period. davidank of america or jpmorgan, am i happy or sad? i am already reserved for that and it's not going to require me to reserve more. i don't have as many hoops to jump through. it's high stress test into the capital requirements. it's a mixed bag, but overall it will be good for banks. we saw a lot of smaller community banks take a hit through the dodd-frank regulation and they have been essentially saying for a while we need a little bit more help. overall, most of the financial industry has been saying we need less and more streamlined regulation and this is what they have with this. david: does this confirm his role as the deregulate or in -- thehat he was bill as deregulator in chief he was billed as? peggy: they will cry of what larger banks are able to do in terms of dividends and by banks. david: the schonfeld story, we have a hedge fund that is picking up a new operation, folder hill, particularly the asian unit is a big one that they are picking up. what is this about? peggy: it's

let's turn to david folkerts-landau at deutsche bank. ffect economics. does this affect it? david: yes. i believe it is in the equity market, widely distributed and held in the u.s., so anything with an impact on equity markets seems through into growth. caroline: futures are up. david: i think the chinese interpret that as positive. was u.s. is weak in china is strong, which we got therong, so now it is chinese pulling back and going to a normal negotiating position. i think the final outcome is -- you suggested this -- will be the u.s. will get a good deal out of this. the chinese will give in on this. tom: i have got to get you in on this breaking news. this is one of those team leaves we know can happen -- tea leaves. a ruble planned bond auction for tomorrow, that is one of those little tea leaves, where foreign-exchange says all. please -- is your team at deutsche bank shaken by the over two standard deviation weakness in the russian ruble? david: knocked at all. -- not at all. i believe the sanctions got to the heart of the russian

bank or an hna thing? feels like an hna thing. david: that is sort of what the stock market suggests. really hit -- get hit. last week,emember deutsche bank had this issue of $35 billion from one account to the other -- maybe they could hna.gotten that towards that would have helped. but this is not a bad news story for deutsche bank. it is a bad news story for hna. alix: let's go to the next story, fresenius dropping the akorn bid. tell us why this is so important in the industry. >> this is an interesting situation. fresenius has come out and said there is something really wrong in the way that akorn was reporting drug data to the fda -- saying that is reason enough for them to break up the merger. we do not know exactly what they found. they put out a very brief statement that there was something not quite right. akorn hit back and said they would fight to get this done. a fresenius can prove there is something called a material adverse change, they will be able to walk. but no current party has ever proven that material adverse change has happened. what will likely happen is akorn

unravel our export finance agency, i will be first in line saying the time has come to unravel the xm bank. davida senator heidi heitkamp who is still is a democrat. is still a democrat. she was speaking with kevin cirilli. sign up for the balance of power newsletter at bloomberg politics.com or at bloomberg.com/politics. get the latest on global policies in your inbox every day. shery: coming up, commodities edge with alix steel. , they will be ceo talking natural gas. if there are any charts that caught your eyes, d tv is your function. you can find them here, you can also save them for future reference. live from new york, this is bloomberg. ♪ ♪ alix: enter energies underperformed the prices. $3000 aluminum. big banks increase their price target as u.s. sanctions on russia continue to fight to the supply or the godfather of lng. exports are huge investment opportunity but do investors need to opt for a new unproven business model to find upside? whot down with charif souki sees a new way to woo investors. ♪ alix:

david: thanks so much. bank's central bank's -- this morning freed up capital for more loans.dp overhaul by 3.8%. economic council director larry kudlow said the united states is in the early preliminary stages of gdp talks talks and trade with china has nothing to do with it. nick, good to have you. square of two things for me. up two things for me. i thought the gdp number was pretty good. nick: they are moving on independent tracks. the central bank has been gradually cutting reserve requirements for a number of years. it will add a little bit of liquidity, but not that much. the gdp number came in a little bit stronger than most people had anticipated, at 6.8%. is other thing i would note that export growth was relatively weak compared to imports. the external sector was actually a modest drag on china's economic growth, which makes the 6.8 figure for ttp a much stronger domestic demand than you would anticipate. demand was big enough to offsent the -- offset the drag from the external sector. external consumption more than made up for some shortfall. they have said they w

david: congressional budget office prepares to release its deficit forecast. mean see what that might for the bond markets. haslinda: all change at deutsche bank. shanghai compose sits and yen.r here's your picture 17215. er.rd of one percent high seen cascade lower lighter volumes. slightly.have 279 is the pricily. we'll talk supplyout lot of the coming through this week. it's the details coming out of office andal budget sort of the trade tensions like aluminum for example. posted 2100. that come down to russia sanctions there and perhaps how when itht play out comes to supply for in metal. new york crude, with etalked this. there's been reversal of in --oning here >> investors remains. keeping eye where the chinese market is. it is the first time that china reaction after being away from the market for about two days currently. up for.gs to look xi jinping speech tomorrow in boao, it could give indication how china might react to trump's tariffs. some say that it is important china to stay on message. stability, is the sell off in the benchmark is much extended it could spill over to the foreign market. more of the markets later. allen.et ne

central bank powerful new -- he will have a permanent vote on the monetary policy committee. --davidhief european economist, jeffries international is still with us. , we knowad this story he is a three hike to for hike man, but the new york fed is entrusted with -- is trusted with briefing the president on everything to governance. any thoughts on this news, a very permanent voice that will -- at every meeting and voting. -- the newfed chair york fed president is key within the fed structure. one thing about john williams, he published some interesting papers about the equilibrium interest rates. economy for the u.s. but also here in the u k, the eurozone, and so forth. he was arguing interest rates had come down since the financial crisis. the interesting thing now, to what degree he thinks it will be inching higher in the u.s. economy particular. the other thing is about potentially switching to price level targeting. at the moment, the key thing will be his focus on interest rates and how they need to rise over the next year. how much are they watching conditions,hter being blame

banking? what is really the strategy going forward? we don't have a lot of answers. davidame time, we have had some investors saying they think it is a safe bet. they don't think he is going to go wildly in one direction or the other. , this is the turmoil not the first changeover in ceos in deutsche bank. they are ready to settle things down. peggy: it felt like a safe bet. jamie dimon brought this up last week and said he is going to try to make decisions more quickly. that is not easy for tanker ships like big banks. david: quick wrong decisions are not so good. your age department -- your hr department calls up and says hey can we talk about a buyout? david: peggy collins, thank you. coming up, an attack on our country. that is what president trump called the fbi raid on the office of his personal attorney, michael cohen. alix: check out tv . you can interact with us directly. this is bloomberg. ♪ david: late yesterday, we heard word that the u.s. attorney of the southern district along with the fbi raided the home of donald trump's personal lawyer. that is pretty

david: when you talk about credit creation, to what extent does europe continue to rely on banks for ations as opposed to capital markets? in the u.s. we have deeper capital markets. is that catching up in europe? jim: it is catching up, david, but is a bit slow. you see this in example in real estate debt. coverage, the of pricing of the debt in the u.s. is much keener, more competition among the nonbank lenders than in europe. kind of slows down the economy there is not a free flow of nonbank credit. europe is building its capital markets but brexit does not make that easier because the wholesale center is london. i think there are various impediments that are slowing down credit creation in europe, which is one of the reasons why i'm a bit on a sell for european equities whereas i am a buy the dip on the u.s. the u.s. is a bit more precarious in terms of what happened next for the economy. alix: when we talk about the fallout from 3% yields in the u.s., my question about how it river rates -- remember rates through europe. in ratesee the change of bonds. 61 basis points so far this

david: ok. ginni: so i was a systems engineer. and i worked in banking, insurance, and i had many experiences through my years. and i remember i had gone into consulting, so i had learned a lot of things, and it was time to do another job. and the story i always tell is that i worked for a gentleman, very good mentor, and he said to me, hey, i am going to get a new job, and you are going to get my job. you have got to go for an interview. you are one of the candidates. go to this interview. so i thought, hmm. i go to the interview, and they tell me all about the job and i am sitting there and i think, boy, in my mind, i'm not sure i'm ready for this yet. this is a big job. right? just a little more time, and i would be ready. i said to him, i said, well, may i go home? i would like to go home and talk it over. give me overnight to think about it. and i went home, so i get home, and my husband, he is sitting there, and as usual, i always say, i am talking, talking, and he's like mm-hmm. [laughter] ginni: and i tell him about this interview. and i said, bu

>> reporter: immediately after that engine ripped apart, david, the plane launched to a bank of 40 degrees. and it was coming in past, 190 miles an hour. took 22 minutes to get here, but they touched the ground at 190. and david, meanwhile, the faa has been working on a new rule that will require more inspections of heavily used older engines. that rule has not been finalized. >> just a terrifying description of the final moments. david, thank you. >>> and as you heard david report there, one of those pilots brought the plane down safely. chef was a navy fighter pilot before. and so many were moved by these images. the pilot immediately going back into the cabin when they landed, hugging the passengers. martha raddatz tonight on the pilot, and how passengers are now describing her. >>> reporter: as one of the first women to fly navy fighter jets, tammie jo spults had exactly the kind of training for just this kind of emergency. unflappable and deliberate, guiding her crippled jet in for a landing. >> yes, sir. we're single engine descending, have a fire. >> reporter: once safely on the gro

on sunday, hundreds in albuquerque turned out to mourn the 43-year-old wife, mother and bank executive. and david, michael riordan has avoided listening to news reports about the incident and southwest's response. for now, he is concentrating only on his children. david? >> which is so understandable. martha, our thanks to you. >>> and when we come back here tonight, we'll have more on that f-16 crash, news on the pilot and where that fighter plane went down. >>> and then, that daring scaffolding rescue, the firefighter rappelling down the building twice to save the people in need of help. people in need of help. we'll be right back. roblem for i'm also on a lot of medications that dry my mouth. i just drank tons of water all the time. it was never enough. i wasn't sure i was going to be able to continue singing. i saw my dentist. he suggested biotene. it feels refreshing. my mouth felt more lubricated. i use biotene rinse twice a day and then i use the spray throughout the day. it actually saved my career in a way. biotene really did make a difference. [heartbeat] ( ♪ ) stop dancing around the p

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hoping for better days for the bad boy bank we'll be joined by david merkel a left investments to seeif wells have an has an off ramp from the rough and rocky road what a visual on all this coming up but first let's hit some headlines. consumer confidence in the united states has come back in april from a poor march the april data beat economists forecast ratings for business in the labor market conditions were both positive including consumer optimism for their own short term increases in incomes and there is more housing data out from the can commerce department which shows that march home sales increase by four percent over february that's a greater than expected rate increase in a ten point three percent higher than a year ago and among the latest earnings reports coca-cola has beaten expectations to deliver three percent sales growth in the first quarter of twenty eight thousand however revenue decline sixteen percent from a year ago to seven point six billion dollars as the company restructures to shift away from bottling and distribution the growth of four percent in soda sales

david: this is bad news, of course, for banks. alix: i know. come on, guys.more on tech and spotify on "bloomberg tech ando and tomorrow -- tech," tomorrow emily chang will interview facebook coo sheryl sandberg. coming up, more on the top story of the day, china's counterpunch to president trump's tariffs. u.s. commerce secretary wilbur the trade dispute is not world war iii, and that they may end up negotiating on trade. also that he was surprised on market reaction. that was interesting. let's take a look at where we stand. dow jones futures still off by almost 2%, down 482 points. s&p futures on lows in the session. inflation came in at 1.4% for the eurozone. germany getting hit due to that. in other asset classes, safe haven bids all across the board. gold getting a nice pop up. this is bloomberg. ♪ alix: trade turmoil. u.s. says it could tax products in response to u.s. tariffs on chinese goods. industrial pain. companies like boeing duck in the crosshair of this emerging high war and where did you in this tit-for-tat trade war? welcome to "bloomberg da

david corn. i'm being sarcastic because i love to be that. jill wine-banks, thank you. the echos keep coming at us and it's not looking too hard to find them. david corn, thank you. your book is fabulous. russian roulette. and ken dilanian, for keeping us honest here at nbc news on this one. >>> coming up the house intelligence committee led by trump toady, devin nunes. why should anyone believe their so-called report released today that there wasn't any collusion? that was their conclusion. there's one person hailing that report. guess what, donald trump loves it. he loves what the republicans covered up. now he's calling for an end to the investigation by the democrats and mueller. >>> plus a major breakthrough today between the koreas as the leaders of north and south korea vow to end their war and denuclearize the korean peninsula. it's a big development ahead of trump's summit with kim jong-un. >>> why do so. peop many people in trump's orbit find themselves in legal, professional, and personal trouble? >>> finally let me finish tonight with trump watch. this is "ha

hoping for better days for the bad boy bank we'll be joined by david merkel a left investments to seeif wells have an has an off ramp from the rough and rocky road what a visual on all this coming up but first let's hit some headlines. consumer confidence in the united states has come back in april from a poor march they have data beat economists forecasts ratings for business and labor market conditions were both positive including consumer optimism for their own short term increases in incomes and there is more housing data out from the can commerce department which shows that march home sales increased by four percent over february that's a greater than expected rate increase in a ten point three percent higher than a year ago and among the latest earnings reports coca-cola has beaten expectations to deliver three percent sales growth in the first quarter of twenty eight team however revenue declined sixteen percent from a year ago to seven point six billion dollars as a company restructures to shift away from bottling and distribution the growth of four percent in soda sales while

among global regulators to test how banks would handle selling off big parts of their businesses that's to avoid a future financial crash at the e.c.b. request comes as david just robles to complete vital reforms it's the first eurozone bank to be asked to sketch out its own plan of crisis plans in this way forcing dodge's chief financial officer to reassure investors. turkey's economy is recovering rapidly growing by more than seven percent last year about stronger than china's growth but with the turkish currency the lira on a continuous downward spiral it seems the country is using cheap debt to keep the economy afloat yet soaring inflation is putting that strategy on shaky ground. turkey is cheaper than ever for foreign tourists the turkish lira continues to hit new lows against major currencies. it's lost nearly half its value against the euro for examples since twenty fifteen. but although that might be great for foreign visitors it's a huge problem for the country because it has to import commodities like oil and gas the country's central bank could apply the brakes by raising interest rates but president rhetoric tired out of want has hamstrung tha

hoping for better days for the bad boy bank we'll be joined by david merkel a left investments to see if wells have an has an off ramp from the rough and rocky road why have a visual on all this coming up but first let's hit some headlines. consumer confidence in the united states has come back in april from a poor march the april data beat economists forecast ratings for business in the labor market conditions were both positive including consumer optimism for their own short term increases in incomes and there is more housing data out from the can commerce department which shows that march home sales increase by four percent over february that's a greater than expected rate increase in a ten point three percent higher than a year ago and among the latest earnings reports coca-cola has beaten expert. patients deliver three percent sales growth in the first quarter of twenty eighteen however revenue declines sixteen percent from a year ago to seven point six billion dollars as a company restructures to shift away from bottling and distribution the growth of four percent in soda sales

. >> the next day david and i separated so that i could go alone into gaza. along with the west bank, gaza is one of the two areas that have been taken by israel in 1967 and has been an occupied territory ever since. >> when i was in gaza david attended an israeli right wing rally in jerusalem. a large movement of religious israelis believe that rather than returning this land, it should be annexed by the state of israel. these people, called settlers, were creating villages in the occupied territories in order to create this reality. the rally was one of many demonstrations held by the settlers to convince the israeli government not to withdraw from the occupied territory. >> you have not seen an earthquake. >> the devastation of an earthquake. all you have to do is go to -- >> the water here is salty. so the government set up desalination plabts. they cannot just get pressure water. looks like somebody's handy candy. in fact, it's their daily routine. there are hundreds of thousands of people who don't want to get out of gaza. they want to keep them in gaza. and the palestinians is

. >> joining us for more on that jpmorgan's chief global strategist, david kelly and bank of a micheles well happy fry. good to see you both michele, to scott's point about rising costs of service and record levels of corporate debt, cash flows that stabilize and then start to decline after a short-term boost from tax cuts, are you looking past all that to where he is? >> you know, i think that there's a big debate as to whether or not we're just seeing short-term stimulus, a fiscal sugar high, where near term data will look strong, versus a scenario where we have a structural change in the economy, productivity is stronger, the labor force is expanding at a stronger rate and to me the jury is still out. you are seeing some hints that long-term growth could benefit and the labor force data has been looking stronger of late. business investment is improving. you could make a case we could have a higher trend growth rate but at this point it's too early to have a strong conviction view and i think you're also hearing the same thing from the fed. look at what the fed did in the sep in the

equity strategist from deutsche bank, and david stubbs from jpmorgan private bank earnings have beening in strong ibm maybe an outlier expectations were high, too how do you sort this out >> i think it's hugely underappreciated since we focus on the market all the time how important earnings and earnings seasons have been for the rise in equity markets we've seen depending on how you count it, anywhere from 60% to 70% to 80% of the rise in most of this recovery has been about the move up in earnings we still live in an investor taking very much seeing is believing type of approach coming into this earnings season, everybody expected strong earnings. the consensus at 18%, 18.5%. our expectation was for significant beats. there's a number of reasons for that i would say basically so far i would say not only so far so good, but so far very good i would say two additional things to watch. number one, key issue is really the extent to which the huge rise in earnings that we are seeing is really coming from the cut in the corporate tax rate. this will differ by sector and company. >> meani

bank is another reason. who knows. >> total agreement with you, david. s not happening. >> okay. >> jim is right about the banks. jpm down almost a full percent and pnc down 3%. it's focussing on the ib shortfalls we'll find out. >> we got off the call the jpmorgan call. it was short and it was just with the cfo today he's with clients in boston the main headline from lake around the training. trade performance, of course, was up year over year but probably not as good as people had hoped for jpmorgan up about 7% for citi up a couple of percent. clearly volatility up sharply in january and february it it remains hopeful but hopeful it'll be up all year but in march and april it's a bit below that january and february level a few other take aways just from earnings generally we saw interest-related margins, net interest margins up, but net interest income really flat because lone was tepid we didn't see the pick up driven by the tax reform bill return on equity very impressive for jpmorgan improving for citi a little disappointing for wells fargo. another

david: that is a good question. the one area rate today that i am focused on is money center banks. lot of pieces in place, including where interest rates are going, valuations, big fat yields in case we should be hedging a little bit. all kinds of things going for them. david: over what period of time do you look at them? mike: forever. i want the company to continue to perform. i want the valuation not to get crazy to the upside. if it gets crazy, i sell it. ibm would have been in that category for me. ge would have been. great companies by their history, but they fail to complete the mission. what i am selling something, it is for a good reason. it is up to high or they are not -- up too high or they are not the company i bought. alix: the correlation has been quite high and it feels like a lot when into it passively and wanted to keep up with it. what do you do with the faang stocks that were out performers in the first quarter? mike: those are playthings. i known -- i own a number of things. i don't consider them investments, but they made a lot of money for me. alix: would you

banking system, preventing the abuse of data. this is bloomberg. ♪ ♪ haslinda: this is bloomberg markets asia, i am haslinda amin. i am davidout 40 seconds into the session in india. here is sophie with the numbers. mumbai, we are seeing stocks gaining growth for a fifth straight session, gaining about 0.2%. we have pnb on watch after being downgraded to double d minus. the ceo had for an early exit. check out in bonds, they opened lower tuesday as state run banks have been, indicating caution about market losses in the recent rout. the 10 year yield rising to 7.4%. you can check it out on the terminal. you have financials leading losses among sectors, consumer staples under pressure. i am also watching health care stock, that segment up 0.8%. morgan stanley sees a steady fourth quarter for the sector, estimating 7.7% growth in net cost. they are overweight on stocks like bio come but underweight in pharma. specifically watching health care. pulling up the board to look at that stock. mahanar gas on the reader, when the owners to sell 12.5% of its stake in the country. haslinda: thank you for that. singapore developing a gu

banks? >> i know we had jpmorgan and david kelly on.the things he mentioned was this influx of money. it's going to take a wild the play out. have -- two that we or three things we have seen in jpmorgan. investing in the retail customer. they are going to be investing in the retail customer. >> there's a big question mark also. to do more with each consumer, they can lend, they can do their asset management services. they are using the customer in many ways. >> what about credit card losses and mortgage loans? >> i'm glad you brought this up. mortgage loans are actually slower as well. bank of america stopped .eporting its business jpmorgan ceo said on friday this with seasonality, but we will see if this continues. -- this is seasonality, but we will see if this continues. fixed income trading continues to be a problem. stanley -- morgan stanley reporting on wednesday. however people are going to want clarity on where it goes from here. vonnie: chief financial reporter from bloomberg news. some breaking news crossing the bloomberg term

bank shot at amazon. this is bloomberg. ♪ david: this is "bloomberg markets: balance of power."nt trump is a task force to review practices at the united states postal service because it is losing so much money. the president was talking about just last month when he tweeted, i have stated my concern with amazon. they use our postal service as their delivery boy. they're pulling many thousands of retailers out of business. that was from last month. bloomberg white house reporter is touring us. -- joining us. the white house is denying this is a way of getting at amazon? >> yes. the president is not directly using this task force to go after it was on, they said. they said that was not the impetus behind why the president decided to do this. together,o and two really taking on amazon directly, saying the postal service needs to charge amazon more, followed by this executive order calling for the postal service to look at its pricing practices. it is not too hard to make the connection between this the animusrder and toward amazon. avid: the postal service has been losing money fo

bank. this get back to our guest in new york. ian bremmer and david sowerby. inancials for very domestic bank specific reasons. the other thing they need to deal with is volatility and normalization of monetary policy will make their job a lot easier. do you think volatility will be back this year? >> yes. much like we are seeing in the united states. when we hear from draghi today i weld like to hear him say are going to continue to embark on more of a tightening mode. rates arelation pushing on 2%. the yields are 0.6%. that's clearly negative. negative real interest rates might be good for the party in the near term but the rise in volatility later am a hangover later is what no investor wants to have. i know this is a question for longer-term but if you look at all the qe we have take that away will markets function like precrisis or will they be fundamentally different? >> markets can still function. in a perfect world draghi would say i need to make sure that a 2% event. it rarely stops at 2%. it usually goes higher and it was even better he would say i ha