jpmorgan obviously is.f you are running a securities business, you want to make sure what comes in and gets done is done right. just try to get it right. stephen: by what timeframe do you expect foreign banks to really be significant material increases in revenue and profit? jamie: that is not the way we look at it. here for 100ng years. as china grows, we will grow with their companies and some will decide to go public. doing more and more multinational. we are gearing up for that. over time, we are hiring y, itrs, traders -- one da will be like what we had in new york. multiple trading floors. desks servinghina chinese companies in brazil, germany, france. that is how we will build it. i don't worry that much about when we will see revenue benefits. stephen: your tower in china will have fewer headaches than in new york? jamie: fewer bureaucrats. stephen: people's daily was out with a commentary that this for financial sectors will basically only be available to those who do not practice protectionism and

we have the full faith of jpmorgan coming here.ing, capital, there arervices -- multinationals outside. we will get there, with regulators on both sides. we should make sure this is aligned properly. years,e after three where are you in the process? have something announced, we will tell you. >> what is your timeline? >> as soon as possible. i have regulators all over the world. >> what is the key priority? when we talked last year, you said joint ventures by nature are sloppy corporate governance. that is a% control, different thing. that works. >> how involved have you been in the consultation for the joint venture framework? there is concern by an industry body in hong kong about the practicality of performing these acurity joint ventures, with 100 billion asset value and other requirements. >> i am not worried about it. there are complex rules. some are bound to change over time and people have been in constant contact. >> the mouthpiece of the company -- >> jpmorgan is a properly capitalized company. running a security busines

how are they working with jpmorgan?s particular instance, there are a number of players in this space. i capital has been a popular one. other big financial firms have in either investors or worked with them so this seems to be something catching on not just the jpmorgan. >> thank you so much for that. at the white house, we will bring you that live on bloomberg. >> this is coming out of time when the president has pulled out of the iran nuclear deal and also when the u.s. and aluminum tariffs in europe are taking effect in the last few weeks. a lot of people are watching for the meeting. any onse, if you missed the program today, g tv is the function on bloomberg. you can access them and save for future reference. live from new york and toronto, this is bloomberg. ♪ is bloomberg. ♪ >> it is 2 p.m. in new york and 11:00 a.m. and san francisco. >> welcome to bloomberg markets. julia: we are live in bloomberg headquarters over the next hour. here are the top stories we are covering. boardroom battle. cbs and its top

jpmorgan global china summit is underway.o oversees the bank's asian operations. next -- our first guest after what was a whirlwind day on day one, is nicholas are losing, the chairman of asia-pacific for jpmorgan. thank you for having us here at your summit. what is your gauge of investor sentiment given the 2000 plus delegates and participants you have? we have financial normalization going on, but geopolitical risks and trade tension between china and the u.s. what is it you're reading -- your reading? >> people are willing to understand and learn more about what's happening. people attending today are more focused on what's happening around china and trade tensions play a key role in everything that happens from a geopolitical point of view affecting china. is an important thing investors are trying to gauge. they seem to be optimistic from an economic point of view, whether it is global, domestic, asia-pacific everybody is looking at what's coming. is there anything that may affect investment opportunities and gauging wh

jpmorgan is a properly capitalized company. running a security business, you want to make sure what comes in is right. just try to get it right. stephen: by what timeframe would these liberalization's -- do you expect foreign banks to see significant material increases in revenue and profit? jamie: that is not the way we look at it. as china grows, we will grow with their companies, with some of the state owned enterprises going public. there is more and more multinationals coming in. traderse, bankers and -- one day, if i have a tower here, it looks like the tower we have in new york the multiple trading floors. desks servinghina chinese companies in brazil, france, the u.k. i do not worry much about whether we will see revenue benefits. francine: that was an exclusive interview with jpmorgan's chairman, jamie dimon. charles myers is staying with us. withg up, a conversation mohamed el-erian. this is bloomberg. ♪ tom: good morning. "bloomberg surveillance." francine lacqua in london. i am tom keene in new york. chairman powell

earlier, stephen engle spoke to jpmorgan's head of asia-pacific -- to thes some big risk u.s.na as this continues. ware do not expect a trade to actually happen. we do expect trade friction to continue, and this is going to be one of the most important issues facing the global economy. >> she also said that the trade measures u.s. might take against china could slow exports from china to the u.s., slow down their gross domestic product, so it seems like there is definitely some incentive for both sides and china to avert the worst that could happen which is no deal at all and a full-blown trade war. does beijing actually want? is it possible? >> what they would really like is to just back off. they want the u.s. to just drop this big terror threat. the head of the pboc had an interview recently said this be dealte plus must with russia. it is a long-term structural issue. own specificir demands. they want the u.s. to stop its investigations in china's acquisitions of sensitive u.s. technology. they want them to address this on one of china's biggest telecommunications companie

stephen: good morning from beijing and the jpmorgan global all china summit.st this morning ahead of -- we are going to be speaking to jamie diamond. general raymond. you are the senior adviser to jpmorgan, retired four-star general. the 38th army chief of staff. last year at that time, you said it was probably one of the most sensitive geopolitical environment the had ever seen. would you agree today or has the tension decreased a bit on the korean peninsula? >> tensions decreased in whenever you have a discussion about having talks, people may be now are taking a little bit of a deep breath. we are not out of the woods yet. this is just the beginning. it is certainly much better than we were last year, rattling sabers at each other. this is a positive step. we have to wait and see. there is a long way to go. stephen: what do you think caused the about-face from kim jong-un? >> the north koreans have always been very strategic in thinking through these issues, and he believed this is the right time. he used the olympics as an attempt to soften the relationshi

spain as well as on the docke and then you have another note out from jpmorgan concern about quarterlys that the relatively flat so that is weigh ing on major market averages in the financials in particular. the dow right now down 445 points more countdown to the closing bell right after this break. i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes... just like that. like everything... the answer is simple. i'll do what i've always done... dream more, dream faster, and above all... now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network. anna and a little nervous. into retirement... but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up mark

charges over displacement and we know the other two join managers on this sale where citigroup and jpmorgan. it is not clear what the allegations will be detailing.

it is all good news and you are going to have to step up to the plate and buy the stock at jpmorgan more on that later u.s. companies that may be tempted to issue bonds overseas, they are going to go to u.s. banks and not foreign banks to do their business. that is great. it gets better the truth is that our banks had to recaptalize a long time ago even if we accept european weakness can be a positive, what about the bears. now, not only is that decline bullish, as we know retail benefit from perhaps lower gasoline prices. plastic is one of their biggest costs and it is made from petroleum. lower raw costs and their yields are more competitive versus treasuries some will be more pronounced if we get a weak number from unemployment how about the dollar, jim? honestly, the dollar feels like a side issue to me when it was going lower, it didn't help as much as i thought it would and the bears kind of succeeded in that narrative, can't have it both ways. the real problem has been rising raw cost i like clorox here as it is much less exposure to overseas market and don't have to worry about t

jpmorgan can comingle some fund.don't, first off, your checking account is covered by federal deposit insurance. take your checking account out. this is about, one the reasons that it was paul volcker, former legendary fed chair who believed that banks shouldn't be playing around with their cash on hand because if they do that, they can go under and that is what led to the financial crisis. now just so you know, the volcker rule, proprietary trading did not lead to the financial crisis. the financial crisis occurred because banks underwrote tens of gazillion dollars -- trish: for a whole host of reasons. >> but this is the main reason, they underwrote all this debt that became worthless during the housing crisis, okay? it was on their books. they couldn't sell it. when they marked it to market, they became insolvent. i will say one other thing, changes to the volcker rule are minuscule. this is really, i know the trump administration is trying to take, do victory laps they have rewrote this thing in major way. they r

jpmorgan's ceo has said that it's possible u.s.wth and inflation has grown fasterough to prompt raising of interest rates than anticipated. there is a possibility that growth accelerates and then inflation accelerates higher than you expect. which maye short end force the 10 up, not down. you could deal with 4% bonds and i think people should be prepared for it. juliette: china oversee estimates exceeded -- china overseas imports exceeded estimates. there's a $28.8 billion trade surplus. from continues to benefit robust demand. global news 24 hours a day on air and @tictoc on twitter. you can find more stories on the bloomberg apps top . pretty solid day in asia. the only market being heavily sold off his indonesia. is can see the nikkei looking quite good and hong kong and china's markets really powering the region higher. having a look at stocks in a rise in india despite fourth-quarter numbers. g-v alto has been -- gelly ely auto has been upgraded by credit suisse. suruga bank is dropping. roundup.eat today, president trump

jpmorgan is not one of them. i love it. jamie dimon is unbelievable i love the fact that he bought his own stock. but after that rise, i said see you later. there is other places. >> you hit it out of the park. so let's hear your next pitch, pete. >> well, i got another one of these places that i think there is a better opportunity than jpmorgan back then i'm going pitch you guys amer prize. it doesn't come up a loss, but what it like about this company, we always start with the management when you look what they have done, that's the same ceo since 2001 by the i welcome back, guy, this is a company based in minnesota. >> sure it is. what a surprise. >> yes, i know that shocks all of you guys. but the ceo has been there since 2001 he has been directing this company. in 2005 it was $35 stock when they were spun off from american express. then it went up to 180 here today it's trading around 140. had a very good day today. but i like what the management actually offers as the company i'm going to come back to them in a second

to replicate it. >> 6.5 times the actual cost according to jpmorgan.e that for what it's worth. good to see you. >> thanks. >> mike santoli. >> up next, chips, with no dip, the analyst behind my kron's upgrade joins us as chip stocks continue their surge this month. see, that's where i was going. more "squawk alley" after this ♪ micron is gigantic it can move a lot of stocks. global markets, bef the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. >>> welcome back to "squawk alley. a news alert here on fox julia boorstin has breaking news >> carl, fox announcing its leadership for the new fox, those are the assets of 21st century fox not selling to disney lachlan murdoch will serve as chairman and ceo of the company. rupert murdoch will be cochairman and the cfo will take on a broader role as fox's chief operating officer. no role for james murdoch, now expected to go it

. >> what about big banks like jpmorgan?he big credit card issue as well in terms of sinking hooks , it perspective businesses looks like an interesting angle as well. >> the $90 billion figure i gave earlier, the banks are the significant -- every time you swipe your credit card, merchants are paying banks for electronic payment. as that changes in terms of signing up for amazon pay, there is a question of are those going to go down for jpmorgan and city, but is there a world where we do not need a credit card and hook the account directly into amazon and you start running off a traditional rails? these are all things "i ability. starting to is catch on but it has not been a no-brainer necessarily or the threat that it would be when apple introduced that. >> that is true. tech companies are looking at finances, another way to expand the ecosystem. in china.aking a note enormous success. seems to be a different market in the u.s. were made we do not want social media and tech and finances in one place. >> or do we? we will s

jpmorgan is applying a vast majority stake in the chinese stake.its financial markets. stephen engle is with us. he was with us at the china summit a few days ago. there?d you get stephen: we were hoping jamie dimon would give us the scoop but he talked about a coming sooner than later. at least that is what the chairman had said. sooner rather than later. the china summit was a couple of days ago wrapping up. we had the interview with jamie dimon anyone's 100% control of a chinese venture eventually. tiny --china has just reformed its -- rishaad: the american banks is having a tougher time. stephen: i will get to that in a minute. jpmorgan, according to this chinese regulator has put in the application. has said they would review the application efficiently. they will get 51% control of this venture, that would be, if it is approved. ultimate goal, this is what jamie dimon told me on tuesday. >> we want 100% in all the licenses of what we do in the united states. i think that is better for the chinese. stephen: about a year and a half or so, jpmor

spirit airlines saw its rating raise from underweight toov weight by jpmorgan. overall e favorable cost structure amid rising fuel prices. that price target now at$46. shares of spirit rose 23 cents to $35.72. >>> that same jpmorgan airline analyst lowered tbs rating on e to neutral from overweight. the analyst cites the lack of talks from jetblue's pilot's union. the price is 22 andhares were lower at $19.19. >> colgate palmolive's rating was cut. a slowdown in the market operations. the price target was $69. the stock was off 2% to $65.23. >>> still ahead, why home buyers are not necessarily springing into action during the spring lling se >>> oil prices rose today after israel's prime ministerne benjan nyahu claims to have new information thathows iran ran a secret program to produce nuclear weapons. >> these files conclusively proof that iran is braze generally lying when it says it never had a nuclear weapons program. the files prove that. >> some say the prime minister's informatio is not new but the comments sent oil prices higher to above $68 a barrel. p

meeting the c.e.o. of jpmorgan. lemonis: so you want to meet jamie dimon at jpmorgan? cory: yeah. mm-hmm. lemonis: okay. most kids that are 13 would be like, "i want to go to the world series or win a trophy at my soccer tournament." cory's list is "i want to meet the chairman of the world's largest bank." he's got a better plan than i do. i'll see you at the commercial kitchen. i'll see you at the commercial kitchen. cory: perfect. nick: welcome. nick prastos. lemonis: nick, how are you? i'm marcus. nick: nice to meet you. lemonis: nice to meet you. is this an event space? nick: it's an event space, and then next door we have our commercial kitchen where mr. cory does his cooking. cory: hello. lemonis: is this where the magic happens? cory: yes, and i actually have a gift for you. it's a shirt. lemonis: okay. cory: oh! now, that looks nice. lemonis: so you know that i'm people, process, product guy, right? cory: mm-hmm. lemonis: so the people, we're square. cory: yeah. yep. lemonis: we got good people. i need to understand the process and how the product works. cory: okay. lisa:

jason: blk capital management is one year old, goldman and jpmorgan are behind it. a student run hedge fund. what makes it unique is it is 100% owned and operated by black students. it began around the summer of 2017, when a trio of students had the idea to start an organization that would teach black students about investing, with the goal of diversifying wall street. it has about 85 members and has collected about $92,000 in assets to invest. it includes a financial education for its members, recruiting opportunities. carol: that's what it is about. ivan: exactly. it is about investing. they will make a few ticks in the market over the coming year, but it is about teaching students who may or may not have any financial experience before, learn about fundamental analysis and meet recruiters with a goal of getting into finance. jason: who are the folks behind this? ivan: the ceo is a sophomore at harvard, other cofounders are harvard and princeton students. they have an interest in finance. the ceo, angel, noticed lack of diversity on wall street. jason: which is ea

it won't be as good as jpmorgan.y the way, they love jpmorgan. >> right. >> and it is interesting, there was a question about goldman sachs and whether goldman sachs is doing the wrong think by trading bitcoin. and warren buffett very cheerily said, they are servicing their client they're not betting on bitcoin because bitcoin calm in during a huge amount of attack. it was just infighting fire. it was their moment they didn't think bad of it. >> bitcoin got called every name in the book to a curd to a nonmore productive asset, to a useless artificial gold as munger put it this morning. >> they struggled to come up with a new negative term i thought curd was an interesting one. i don't know if you used that one lately, but it was off limits at home >> i haven't >> no? >> no. >> buffett weighed in on regulations applying specifically to facebook listen to that >> i like good news -- or bad news that isn't going to last. and i'm not saying that's one of them, but bad headlines don't bother me. i mean, i have bad headlin

let's get back to the jpmorgan global china summit.ions between china and the u.s. are likely to escalate to askas trump is likely for a surrender rather than negotiation. he is a trade professor at cornell university. dave? >> absolutely, haidi. this issue has come to the forefront of minds of investors. all day yesterday everyone was talking about the trade tensions between china and the u.s.. that is what we are going to talk about with the senior professor of cornell university, also a fellow at brookings institution. what is your assessment about how things got off last week with steve mnuchin and wilbur ross? at least publicly, not a lot of progress was revealed. washington, what the trump team put on the table was not a basis for a negotiated settlement. one can think of the u.s. starting off with a tough are getting solution, but it seemed an unreasonable set of demands. isthe other side, it promising, traveling to washington next week. that would suggest the chinese do want to move toward some conciliate -- negotiation at leas

we're seeing goldman sachs creating a trading desk and jpmorgan getting involved and ibm.logy here that is worth leveraging which is going to create a tremendous amount of demand for employees. liz: but between now and then, we've got a shakeout happening and manipulation, the old school tricks are still plundering at least some people's profits. tough to watch, certainly. good to see you, avi, thank you very much. >> thanks, liz. liz: oil not being crude to all stocks. we should let you know that. while it's hammering exxonmobil and chevron, etc., the closing bell ringing in about 39 minutes, oil is having the complete opposite effect on the airlines. look at the gains that american airlines, delta, jetblue, southwest, united continental are seeing and enjoying right now. southwest up 3%, the others anywhere from 1-2.5%. they're the biggest gainers on the s&p 500 right now because it will cost them a lot less to fill their engines and their, make them fly away with less expensive jet fuel. up next, he used to strut the red carpet walk for his hit movies like jang go uncha

you see jpmorgan biggest laggard on the dow jones industrial average down 4.2%. the financials really came under pressure. american express, goldman sachs among the losers. ge has been a constant laggard. but you can see that the financials in particular got hit, not only because of the jpmorgan outlook but also because of the 10-year bond yield. and that has been front and center. we watched it so closely. we saw it hitting the recent highs of 3.128 on may 18. and look at it now, 2.78%. so it moved below the 50-day and moving lower these yields as everybody flocks into the for safety. and with that, we saw the vix, look at the vix, it tells volatility. indication of the fear and worries. look at that. 30% to the upside, and a quick peek at the financials once again, and down arrows, morgan stanley down 5%. financial sector sold off the most in two months. back to you. melissa: nicole. thank you. phil oil is down five days in a row. longest losing streak since february 9th. what do you think about that? >> it's based on a lot of fears. obviously started with opec

who am i to argue with jpmorgan? i don't know if 3,000 is in play we have defended it on the down side to make me think we have a shot to go to the upside, maybe tomorrow. >> tesla cratering after a wild performance from elan musculoskeletal musk jim cramer will weigh in the crypto craze is captivating wall street. a top investor will tell us how big of a bitcoin boom it could lead to. and guy is stepping up for the fast pitch and says a hospital stock is about to break out. much more "fast money" after this - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. we use our phones the sa

jpmorgan, ge, they are all the biggest losers, all the s&p groups are in the red right now except fortionally defensive real estate group, which rises as yields fall on treasuries >> all righty, dominic chu has a market flash for us. >> as markets continue to sell off that you guys were speaking of, we are trading near to lows of the session, but we're keeping an eye on semiconductor stocks that are holding up relatively well. intel, nvidia, and texas instruments are outpacing the broader technology sector and the broader overall market and take a look at applied materials and micron, both are trading in positive territory as you can see there. micron up more than 2% and earlier today hit its highest levels in nearly 18 years so those shares certainly a focus finally, we want to highlight a few other names outside the chip sector industry group. you've got ralph lauren on the retail side, align technologies for dental stuff and then streaming giant netflix. netflix, guys, earlier today, hit a record high as well, this time around so those shares seemingly immune to some of this market

jpmorgan, i they will we'll see some buybacks. i like it.n i still like it. >> the management team, jamie dimond is one of the most structured and respected ceos. i would back him any day of the week. >> i know this is higher or lower, we're supposed to push back but i think it is higher too of the valuations, i -- >> he doesn't get one. he gets karen's pick >> thank you very much. >> grasso. >> higher? i think higher as well i think you'll see regionals outperform they're off 9% off up 2%. >> seeburg is up next. seeburg, nike, higher or lower >> i think nike is lower priced to perfection here. >> lower >> i think it is expensive it is trading at 2% free cash flow yield versus 3% to 4% from peers. from a price perspective, i think it is expensive at the levels >> i think it goes higher. >> it is not yours >> higher. >> come on >> i have my own button. >> their global growth, what you're seeing in the future, it is going they're recovering in the basketball -- i think the margin is good. >> you don't worry about the executives leaving, 11 top

i will bring you that exclusive interview with the jpmorgan chief executive.is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. i am markondon, barton. let's check in on first word news. the state of the iran nuclear deal is in president trump's hands. the president wil

michael bell at jpmorgan asset management. the broader context.treasury yields this week above 3.1%. brent crude above $80 per barrel. with big landmark moves, does that change anything? michael: not particularly. bonds, happy with bond yields moving higher in equities holding their ground. 10 year bond yields in the u.s. can go a little bit higher. 325 by something like the end of year for the u.s. 10 year here equities have further to go. nejra: are we in a scenario where the nervousness in markets could start to impact the global economy? michael: i think that is not likely. sawuld be concerned if you oil prices going up to something like $100 per barrel, that would be concerning for the impact. at the moment, u.s. consumer confidence has held up very well. the biases that oil prices will go south by the end of the year. nejra: i have a chart showing brent crude touching $80 per barrel since the first time since 2014, above the 200 day moving average. where this is right now, you are suggesting is not a concern. and analysts yesterday said anal

banks in the world hold bonds, and that - >> especially european >> yes jpmorgan helped in the past,ey have a -- they are tiny relative to the overall value, far from systemic for u.s. banks, but more exposure for others so they take a ride down on that thing. again, there's potentially opportunities here volatility spiked. >> sure. >> goldman sachs should be enjoying things today, but when the bank index is down 4%, hard to shrug it off. >> explaining why the dow is down 500 briefly, down 470 now, worst of the major averages, russell down a half percent. >>> we go now to the quote of the day. >> it is positive. >> let's see what your interpretation is. >> it's not framed positive, but i will amazon ceo jeff bezos gives a gloomy forecast on friday of life on earth. discussing the possibility of humans living on the moon, quote, we have to leave this planet, and it's going to make this planet better we'll come and go and the people who want to stay will stay >> bezos said what he's doing with the rocket company is, quote, the most important work he's doing point on this is these guys

jpmorgan come citigroup, and bank of america three examples of that. we have this situation heating up in italy. we have folks buying in the united states, looking for what they perceive as safety in the treasury markets. that is sending yields lower. the yield on the 10-year briefly touching below 2.8% today. here is the chart going back several weeks. of course, all the talk at one point was 3%. we were about that level for a good week of sessions, a little more. now the momentum has been very weckly to the downside as see the rotation back into the treasury market. caroline, what are you seeing? caroline: julie, it is a search for safety. crisis on the agenda in europe. i want to show you a picture of gmm, show you a picture of the contagion. portugal is having its worst day since january 2017. greece is selling off from austria is selling off, spain is selling off, all because of italy. a good the italian two-year yield, just look at the italian two-year deal -- look at the italian two-year deal. everyone is looking to new elections new political t

hired michael weinstein, who had been an analyst at jpmorgan for 26 years.at medtronic does. they are best known for their heart therapies, 18% of their revenue. urgent solutions, 17.5%. we are also looking at diabetes, surgical solutions. quite a bit of different businesses with the health care industry. what has happened over the last year or so, the stock is flat. perhaps they need to jump things up. they brought and mike weinstein as the senior vice president of strategy. he had been an analyst at jpmorgan for 26 years. is an md, well respected by analysts. he also knows the competitors. it is thought that he can help this company do their best. a $30 billion company, so bringing more of that to shareholders. david: given what he has done to the stock, lp got a good pay package. the markethat believes a single person in strategy can turn the company around? >> before i answer that, i want to go back to your point about the pay package. his compensation is mainly stock. he has a lot of skin in the game. david: looking great so far. >> best day of the year

jpmorgan chase -- or morgan stanley downgrading macy's to an underweight. this came across the inbox here. the stock had a nice run, up 60%, but they believe return on invested capital will deteriorate. real estate gains are masking the underlying deterioration in core retail. macy's getting a downgrade from morgan stanley to underweight, effectively a fancy word for sell what do you make >> they were at 27 bucks to 21 bucks. they said they'll use an 11 times multiple on macy's but not include real estate sales anymore, because they think those are winding down i don't think the real estate sales are winding down >> in other words, shrink their physical footprint or lease the stores back to themselves. >> or make the stores smaller, lease out part of it sell part of it. that's what they've been doing i think that will continue i think all the words are right. but i think -- >> i just got this how did you know about this? i put you on the spot and you seem to know more than i do. how did you know this? >> i saw it in the green room. >> so breaking news to me

. >> rest about trains from jpmorgan chase, morgan stanley.et revenue could be flat compared with a year ago and the wealth management division says activity is slowing. is this somehow a bad time to be a bank? >> it was actually a pretty good time to be a bank up until some of these latest quarterly earnings reports. particularly with a rising interest rate environment, a lot of investors expected better results than thought in that kind of situation, banks would achieve a higher level of profitability and said a lot of investors moving back into the site there. some of the flat trading profits that were with ported were not great news and that is a function of the local volatility environment as well as the other reports of declining sector activity. >> you would think it would be a good time for the bank says interest rates have gone higher. they make more money on their loans. you know, that is good news for the banks. it pretty good regulatory client. this is the site are good for individual investors alike to be. should they continue to

jpmorgan says this morning, the company raised all of its domestic fares by three dollars one way.he analyst over at jpmorgan said this price hike is the airline's first substantive plain-vanilla increase since april. it follows on the heels of a spike last week. this is according to a j.p. morgan analyst. those shares up 3%. elsewhere, in terms of who is benefiting from the trade truce talks, if the end up -- in the industrial companies, but in terms of the index point games, the s&p, a lot of that is tech. because of their size and those companies also do a lot of business with china. microsoft, an interesting story. the company will set up an open platform with four of china's most prestigious universities to share it to data and tools on artificial intelligence. may be giving it a leg up in that market. finally, as we watch these moves and watch what is going on with stocks broadly, it looks like hedge funds are cutting their bets that we will disconnect -- we won't see volatility. they turned negative for the first time since the end of january. there was this long idea that t

we actually just launched an alexa scale on jpmorgan.nsumer side translate into the wholesale side. how we can service our customers, those rich engaged experiences but how we drive operational efficiency. how can we enable our workforce? our employees, so a trader with information in realtime to ultimately incites to, you know, serve our clients even better. >> 50,000 technologists and counting. we'll let you go. you have your hands for. good to talk with you. >> thank you. >>> stocks just posted their ate straight day of gains. after-hours movers right after this. what? directv gives you more for your thing. your... quitting cable and never looking back thing. directv is rated #1 in customer satisfaction over cable. switch to directv and now get a $100 reward card. more for your thing. that's our thing. call 1.800 directv. ♪ >>> welcome back. here's a quick check on the headlines making news. shares of chinese ecommerce vipshop plunging. data center operators switch also sharply lower after its full year guidance was inline with wall s

asline is jpmorgan index. --fx we get a rise in another asset class. i thought this wasn't going to be the taper tantrum of 2013? i thought these would be more insulated from the arise -- from the rise in u.s. dollar? marty: it seems the best laid plans went awry. situationry difficult and it is very localized, but it still has an impact on markets everywhere. so you just can never count on things being normal in these days of uncertainty. alix: that leads me to how i lead in, we saw with central bankers and argentina, the only way to stem the tide is if you hike your rates enough to keep money in the country before you can get inflows. that is quite a hike. gina: and it has consequences for domestic growth. ultimately it constrains growth domestically. it's a fine line and a balance the central bankers have to make. in a lot of ways this time it is not different. every time they start hiking interest rates, every time or move, it does tend to have consequences for emerging markets. we are seeing that occur. we have been able to dismiss that thinking i

jpmorgan chairman jamie dimon spoke exclusively with bloomberg's stephen engle after -- at the jpmorgant in beijing. his outlook for the u.s. economy remains upbeat. going back to are work. houses are in short supply which is good for the company. the capital markets are wide open. there is much less leverage in the financial system than in the past. i disagree when people say it looks like 2007. banks have twice the capital, twice liquidity. consumer balance sheets are in good shape. the way to look at the recovery is look beyond the year. we had 20% growth over nine years, and the nine years is really good, the 20% is bad. it should have been 40% over a shorter time, and that's why wages did not go up and all these various things. it looks like this may have legs to go, one year, two years, maybe more. other things happened which will not happen exactly the same. remember, the rest of the world is doing better. japan 1.5%, europe 1.5% approximately. i don't know. it is 1.5%. the last 10 years it was 0%, so that is a positive. i hope it will continue. the fact is, america is in pretty

as you tend to see, clients have spread out the business but jpmorgan has been the big winner. amount of share they have gained has been pretty dramatic. >> thank you. it is time for the bloomberg business flash, look at some of the biggest business stories in the news right now. semantic dropped more than 30% after the world's number one softwarecybersecurity admitted revenue and profit will come up short. they also disclosed an internal investigation into an informeded matter and they will delay filing fair annual report. shares fell the most today since 2001. the former head of real estate at harvard university received $24 million in 2016. he was the highest paid employee during a time when they trailed its peers. bitcoin is winning above the $9,000 mark and that ended today. they declined after south korean prosecutors raided the offices of one of the largest crypto it -- crypto-exchanges. this was part of a broader selloff in the market. jeffrey katzenberg has raised $800 million in financing for his video startup. high-endny will fund tv series that have you to -- youtub

dow up 306 led by exxon, chevron, jpmorgan and merck. how about the russell? the russell 2000, another record all-time high. 15th record close for 2018 for the small cap. up about 8% this year. speaking of the banks, jpmorgan, goldman sachs, look how the banks managed to close higher as the 10-year treasury yield moved higher, but is below the crucial 3% mark. and record all-time highs for microsoft and netflix and amazon had a record close as it gained today. liz: the wife of an illegal immigrant telling individuals in the media she does support the trump administration's decision to deport her husband. coming up, we've got the sound. >>> also tonight, more roseanne barr fallout. president trump now calling out disney ceo bob iger for apologizing to former obama official valerie jarrett but not picking up the phone to call him about abc's slice against the president. we've got details on that. >>> terror attack in belgium leaving two police officers and a civilian dead. we're bringing in kayleigh mcenany on what we have yet to still learn about this, coming u

tom: you mentioned jpmorgan.is the advantage for the european multinationals? how do they adapt and adjust in what we see in share price and economic politicals in europe? john: if you go back a few years we would have been talking about m&a. we still don't believe you are going to see any big deals and the u.s. banks don't need to buy in europe to do lots of business in europe. with this turmoil as well, the one thing we will try to work out as -- is we know march was a slide months. it was supposed to be picking up. hithis risk off has trading, they will just do some hiring. good storyhere is a we covered earlier on bloomberg markets saying if you look at mp isropean banks, the probably the most like jpmorgan in europe, but they are trying to go to germany. you share to give price reaction in the last five years and you have to guess what it is. this one, deutsche bank, below 10 euros. how significant is that and how does each executive make a case for people investing in deutsche bank? john: with great difficu

and the head of jpmorgan says that, we have to listen to it. never had tv or the reverse of qe, in turn premium is still negative. central banks are eventually going to be exiting these programs and if that's true, we should be headed to more normal rates. , can we get some more normal rates? mr. buchanan: anytime the jamie dimon talks, you are smart to listen. interview, to me, he didn't seem like he was predicting 4%, what he was saying was we need to get prepared for the possibility of 4%. we don't see for present happening and we don't think roads or inflation are consistent with that. we have to make sure the client portfolios can withstand that type of shock. jonathan: why struggle with is if the fed has to go quicker, widely forecast this parallel shift in raises of the whole curve is going to lift the federal reserve. mr. rusnak: rates have already gone up 60 basis points and you see a flattening of the yield curve. as far as a 4% 10-year, we'll see that for any time over the near-term but we do think the rates are going to be going up

when you look at these names, the most important of them all, jpmorgan here, the bull market still very much intact, trend line is there, you get this above 115, looking for 135 target then you start to look at some of the smaller ones, bbt, another name that's basically been sideways all year, right back at the highs, above 55, 56, you're looking at $63 stock. i think this bull market is very much still alive in these names. >> so would you rather, chris -- >> i love this game. >> chris. >> why not, he's a member of the "fast money" family. >> why wouldn't he. >> regionals or xlf. >> regionals right here. i want to own bank stocks. you look at xlf, the largest weight is berkshire. there's a lot of insurance weight in the xlf. we want kre, krx, that's where the leadership has been. >> chris, thanks >> karen mentioned citi, tangible -- that's what i do look up things tangible, $60.02 that said even if you put relatively in my opinion .3 multiple still 9% upside or 10% upside from current levels we've seen just to button that up. >>> coming up dow looking 200 points into the close as trad

tilmann galler, global market strategist at jpmorgan asset management is still with us. you think u.s. valuations look stretched here as opposed to the european and japanese valuations? european and japanese stocks are probably a bit cheaper than the u.s. admitnerally, you have to that after the correction we have seen in the last months and after the strong earnings especially in the u.s. we saw, even in the u.s. equities, they do not particularly look expensive. they are not cheap anymore, but they are not expensive either. matt: is there a concern, wemann, that the balance see, earnings in the first quarter were up 25% for the same quarter a year ago. but a lot of that could come from the tax cuts in the eight one-time item. -- a one-time item. will that momentum be able to continue throughout the year? guest: we believe strongly so. because it is not only the tax cuts. we still have a very benign growth in the u.s., phenomenal growth should be -- a nominal growth should be strong around 5%. ineurope, we still believe the continuation of the recovery with a nominal gr

so those massive jpmorgans of world, they could hire more. and if you were a small bank that predominantly ran loans in the u.s. you couldn't possibly afford that. even if you don't care about banking if you need a loan and you run a small business in all different parts of the country, you couldn't get it, because the jpmorgans of the world, they're not interested in doing business with you. this is a great move and the fact that barney frank thinks it is i think says a lot. >> right. and it also is, the farther away from the financial crisis, the more inclined people are, legislators are able to listen to the complaints of small and medium banks, and large banks to say, okay, that's reasonable, let's make that change. as you indicated this is not a repeal of dodd-frank in any way. it's a tweak to regulations bone on large banks, medium-size bank side, with capital requirements and oversight for those banks between $50 billion and $250 billion in assets. but it also reduces reporting requirements and some of the regulations on those small ba

they don't have jpmorgan assett management or that retail investing franchise. they don't have wells fargo advisers or smith barney >> let's let leslie get in here. >> it's important to make a distinction between valueact and other activist investors valueact very rarely runs proxy contests when you look at their letter, they're not really proposing much in the way of changes they're actually very glass half full, glass full half full? on the whole supermarket model they say the scale that citigroup has been able to achieve provides them a competitive advantage relative to other banks so at this point in time, i don't know if valueact is going to be the catalyst that really makes big change at citigroup. >> touche, but they have succeeded in one way we're talking about it >> this is true. >> they got citibank on the front pages. >> i'm a frustrated shareholder. down 8%. down 11% from january highs. it's cheap, and it seems like it's always cheap. until they can consistently execute, it's going to stay cheap. no matter who is involved, anybody, really. they have

the red line is about when jpmorgan says they slept. -- flipped. a neutral to short treasury position, the 10 year yield rose for six consecutive days. they are saying look, this is more of a technical reason that treasury yields are rising versus any fundamental reason because it is quant driven. matt: andrew, what is your thought on the rate situation? is it in flux or can you get a steady trend that it? andrew: to pick up on what dani was saying, we have been in an environment where suppressed levels of volatility really force people into momentum trades and it is not a surprise we get these sharp reversals at times when the economic fundamentals suddenly don on people. monetary policy in the states, even though it has been tightening for a while, is so accommodative. the shrinking of the feds balance sheet. lowpe with incredibly interest rates. we are still in a world where you have accelerating growth, signs of inflation picking up -- may be by some of the trade and in the u.s. in particular, we are well on the way to normalization. it still s