that is morgan stanley.ply lower, underperforming the financial sector and on pace for the worst day in more than a year. abigail doolittle joining us with details. is this a specific morgan stanley story? abigail: great question. it is a little bit of both. those are on pace for the worst they since the brexit selloff. starting off at the micro, we had the head of morgan stanley wealth management present at a deutsche bank conference, and he talked about the idea that transactional revenue has been down since march. that should not be much of a surprise. all the volatility means retail investors are less likely to trade, and assets could be worth more. somecould make investors surprise. -- surprised. relative to the bigger story, we have banks down sharper on the day. underperforming, more than 5%, the bank index down 3%. david: as morgan stanley tracks down, to other banks as well? really gotnks crushed today, financials in general as well. what is causing that? abigail: it really has to do with the italy

reporting from the morgan stanley summit in beijing.iew with the morgan stanley ceo and chairman tomorrow, 8:00 a.m. sydney time. coming up, asian debt high yield sales and defaults climb. more on that. this is bloomberg. ♪ >> a quick check of the latest business flash headlines. two senior executives have been sidelined as part of a response to the tech ban in the u.s. the trump administration banned zte from using american technology on the grounds of national security. rishaad: happy to remain a minority shareholder. chairman says he does not plan to increase the holding. rose 11% this year. billion.a cap of $21 then'slong as largest shareholder, our investment won't affect operations. it is only 4.9%. we are here to receive dividends. chinese developers are calling for a second day in hong kong. listed in shanghai fell more than 2%. properties bid more than double last year's price. rishaad: let's have a look at china's biggest property developer, country garden. there was a $3.1 billion sale. you are saying the party is over for as

i heard chatter on the desk. >> i had morgan stanley, lyon, i traded morgan stanley over the last couple been a good name to trade it's broken down technically, and i will probably be out of morgan stanley at the end of today. it's clearly losing its momentum when you're looking at financials, the capital market story, wilf mentioned before that yes, the trading environment, the increased volatility is good, but josh and i were talking with steph and jon during the commercial break about it a lot of these capital market quote/unquote institutions that we knew of the past are trying to identify who they are all over again i think goldman sachs clearly fits into that category. who exactly are they >> i wanted to hit this topic again. i heard you talking about goldman sachs during the break >> i just think, like, i think it's going lower it's purely a technical call, but this is a stock that bottomed exactly a year ago at around $200. it looks hell bent on revisiting that level, which sounds like a lot, but really would be less than a 10% drop from here. you don't have a huge yield here sup

we have a chart of morgan stanley for you. biggest drop in two years in addition to concerns of everything we mentioned. one said their wealth management unit was in big decline. let's look at other batterings of the banks. 3% and 4% declines. deutsche bank down more than 6%. the concern is that said rate hikes, which had been a pillar for profits built in, is now being eaten away by this concern, and a real question mar k. david: talk to us about oil. where have the levels gone? we were talking about the 10 year, a few weeks ago closer to 3%. westech -- west texas intermediate, the lowest close in three months. take a look at the chart -- or at least the selloff -- you can see we have been running toward $72 a barrel. big drop in the past week. just close in on the one-week chart, you can really see the decline. mrs. is the fifth straight decline for texas intermediate. it had a loto do wh russia and saudi arabia talking about boostingcaps. let's go to the one-week chart if we have it for oil. that has brought oil chances dow

morgan stanley following 6%.hey are calling it the italian bond quake, wreaking havoc on the fact we have seen treasury year plunging. su: let's go back into the bloomberg on this italian bond point. it is almost unprecedented the move we have seen in the italian two-year surging. if you look at it graphically, it is pretty dramatic. the ripple effect throughout europe, as well as here, has been dramatic as well. we really saw the selloff in the u.s. pick up as the european markets closed. let's go into morgan stanley because you also have a layer on effect. morgan stanley not only falling with the rest of the banks, its charted today performance, it really had a dramatic drop. you also have the wealth management unit, seeing some slowdowns there. biggest drop in two years for morgan stanley. let's go to some of the other majors. citigroup, jpmorgan, chase. the size of the drop is significant here. these are in the middle of the interest rate play and it is a very dramatic day for all of those in the bullseye, as

morgan stanley says italy's woes are mispriced.ent bond yields ratcheting higher, volatility around markets in terms of stocks in europe, bonds in enoughare not pricing aggressive market moves. let's look at the risk radar. futures are set for a lower open. , that is a haven assets of choice. or is it swiss? do you want to have yen or swiss in your back pocket? two year government bond yields are rising, the government has gone long of a year. does that have more to do with the fed, or more to do with the risk off sentiment in the market? nymex crude is down, a little run of bad luck on the oil market. you are seeing a drop on nymex. moving average is $66 and change. that is a critical level. let's talk about the bond markets where the action is. two year government bond yields in italy are important. that is what we had been looking for. to year yield up 119 basis points. this dropping by 18 pips morning. the two-year yield a rallied 119 points. are we done there? optionality onuy the bond market. you have seen the biggest spike i

we bring you more of our exclusive interview with the ceo of morgan stanley.g. ♪ matt: welcome back to the european open. we are 43 minutes into the trading day. still looking at a fairly mixed market. it has turned positive. the backs is down, but gains on the ftse and the cac. gains in spain and italy. only among the european indexes do i see drops in stockholm and frankfurt right now. calmed and have yesterday looked calm. questions swirled over concerns over u.s.-china relations and trade. tom mackenzie, bloomberg's china correspondent spoke with james gorman. i guess i am disappointed, tom. we have achieved great trade cooperation around the globe. there are clearly infractions that need to be corrected. there are clearly in certain inntries different points time that haven't played by the rules and that needs to be fixed, but the rotter global trade is a strength for global economic growth. it is what has brought so much prosperity around the globe and i saw the u.s. is talking about tariffs and it was 50 billion on imports from china and that is 500 imp

andrew sheets, a chief strategist at morgan stanley joins us now from london. to have you on the program. going to be a predictable late psyching process with credit and then yields and then equities peaking? andrew: these things are never predictable. what wean go by is think fundamentally and what has happened in history. those actually lineup. we think the fundamentals in credit are the weakest. it makes sense for credit to have dropped in january. that is when we think the drop in credit spreads has occurred, and the equities would come after that. the equities would be the last thing to peak. some ofthat fits with the one-off factors that are currently boosting equities, including optimism around the one-time benefit from tax cuts. nejra: what sort of timing are you looking at? the market has to get through a couple of different challenges. we think that by the third quarter of this year, that is when we think the earnings revisions, the forward earnings for the s&p 500 stopped going up. as a later date, we think the third quarter is a moment where it woul

morgan stanley i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. i thought after sandy hook, where 20 six and seven year olds were slain, this would never happen again. it has happened more than 200 times in 5 years. dianne feinstein and a new generation are leading the fight to pass a new assault weapons ban. say no to the nra and yes to common-sense gun laws. california values senator dianne feinstein >>> all right. not to toot my own horn, i hope you were listening when i told you to buy zebra technologies. think bar codes, mobile printing, real time locating systems. that means zebra helps people keep track from inventory to where footb

francine: that was the chief executive of morgan stanley.r guests thank you both for joining us. andrew, let me start with you. when a look at the turmoil we saw in the markets on tuesday, was a justified? was it ends up no volatility -- pent up no volatility or are you concerned about italy? andrew: we are quite concerned about what happens in italy next and will be for a couple of years. the market action on tuesday was extremely unusual. probably not a surprise, but you have just got to step back and take a high-level view. you have a populous government. sorry, the potential for a populist government. you have a debate over whether they can have an arch eurosceptic as the finance minister. if you have concerns about the populism in europe, it is happening at a time when italy's growth is not bad. immediate risks now and in the next recession, we could see much broader pressures. tom: i want to congratulate you and pimco for moving forward on wall street. andhad stanley fischer cornell at one of years recent meetings. how do you synthesiz

we are live at the morgan stanley summit in beijing.. ♪ this is bloomberg. ♪ yvonne: we have made from bloomberg asia headquarters. welcome to "daybreak: asia." toa-pacific markets set extend. also signaling gains this judge the reaction to the political crisis in italy. i'm in new york where it is just past 8:00 p.m. on a wednesday. washington will now impose metal tariffs. cashing in on a fading star. win whateverhow to the future holds. yvonne: the political fog seems to be fading a little bit when it comes to italy. we saw a big bounce back when it comes to equities. hear whatited to james gorman is going to say in the next couple of minute about whether we have seen the worst of this italy crisis. ramy: that's right. looking at the markets and how those ended, it seems like what happened yesterday never really existed with the s&p 500 and the turning around. it will be interesting to see what happens when markets open, like they are doing right now. yvonne: let's take a look with sophie kamaruddin. quite a bounce back. sophie: quit

morgan stanley, this is literally a fraction.ere is a lot of banks in between. >> the bank of new york mellon and morgan stanley, dot, dot, dot. they need to first get back to where they were. not too long ago, they were at $600 billion, now under $500 billion. david: he knows the busins and he was brought in to do that. you look at their earnings, they are dog well. alix: do they have to buy to get it? what kind of acquisition with a have to do? >> it is a theme we have been hearing from the banks and the private equity firms that have invested in that business, that this is an area of activity, this is the place where people may be are investing organically, but you may need to buy to bolster that. david: carlisle is not having trouble raising money. head said it is easier to raise money than any other time i have been in the business. is it good news or bad news? >> great news if you are david rubenstein. money,if he can raise why can't other people raise money? >> one way to look at it is -- david: i am a glass half empty guy

there was so much negativity in the shares into this led off by the morgan stanley note two and a half weeks ago the services number is important. it's 15% of revenues, dan told you about the growth if this gets up to the high teens -- which it will be within the next couple quarters, then the valuation that apple wants it might deserve. >> i thought you were going ask me to play a game. >> just because i raised my hand -- >> game time. >> do we see a sight line to the handoff from hardware to services at this point do you see it? glimmers of it >> much like the market we need to determine the new multiple because it doesn't matter if the earnings are good. it's time to figure out what the value ascribed to an 800 million user install base and i think you have a lot of good stuff here today who cares, the home pod disappointment it's a case where i think they are showing they're getting into services and that hardware is -- >> but she's asking an important question. >> thank you, dan. >> which i clearly didn't answer. >> well, listen, their hardware-installed base has to grow and whate

morgan stanley >>> we are back, jon and pete now at the telestrator as always for unusual activity in the options market tech and energy. pete, you got it first >> you know, yesterday, we were talking about energy how i took off a big portion of those positions, scott, because it was short term today, i'm back into xop why, because they came back in today after this big drop you see here and then sort of balanced out today, very large buying, they actually were buying xop yesterday as well. they were going at a higher strike but what i like about seeing this through today, we haven't seen anything past june. now, we finally see the july calls. i bought these calls so at least i got more exposure. >> doc, you got one? >> take a look at xilinx fast buying in xilinx, they're buying june calls with stocks at 6850 here. came scrambling in here. 4,000, added very quickly to it since. like i say, i bought these calls, be in them about two weeks. >> straight ahead, management expert susie welsh after this week's bomb shell report that athena health ceo jonathan wolf attacked his wife 15 years

a morgan stanley -- the morgan stanley ceo. >> the fed has been incredibly we are now down to 3.9%.rend wages are not picking up. a slightly modest inflation of wages. getave taken this long to this far, not far at all. rates are still at historic lows. all the fed is trying to do is get back to a normal rate environment. this is if and when the next crisis occurs, but it is also right to keep the economy and balance. the fed will raise rates for time this year -- four times this year. i don't think the last 24 hours will influence that. >> where do you see the european union in 10 years? >> i am not good at predicting rates or currencies or markets. we don't know what it will be tomorrow morning. i think earlier this year, we were in the low to percent. we reached 3% a little while ago. i would be surprised if it was above four. yesterday, there doesn't see any move that could see the fed is slowing down. an earlyould be warning sign, but my gut is it is not. manus: the news and comments ahead of u.s.man expansion data. --t will be released today later today. when we look at what g

morgan stanley underperforming at a conference today. 40% of their business in that appears to be weighing on some of the other money managers and even american express, down 3.8%. a big slide for financials and that is the worst sector on the s&p 500. we can see the relationship between the 10 year yield and the financials by hopping back into the bloomberg. do have a spot here where the banks got ahead of yields. more recently, we have had the banks sliding as yields have doe banks got ahead of yields. climbs, but if they continue to slide, it will suggest the selling action for the banks could worsen. take a look at the intraday charts against the dollar against the yen. it is rallying against the , that isut for the yen its best day since may of last year. we have confirmation of the risk off, but it is interesting to note that while it is big, it is not matching the buying we are seeing and bonds. >> good comparison, a global flight to safety right now. let's get a first word news update. maryland residents and business owners are m

. >> sullivan: axel rivera was at morgan stanley when the record 2014 bond deal was done. says that as the island got closer and closer to default, g banks weting nervous. what were you told specifically by bankers that you worked with at morgan stanley about why they did the deal? >> they wanted to try to get as much as they could of their exposure out of their books. >> sullivan: your colleagues at morgan stanley... >> yes. >> sullivan: ...told you tha they had exposure to risk at that time? >> that they had much more than what they wanted, and they needed to unwind that. >> sullivan: that exposure was huge. we discovered the bas had hundreds of millions of dollarsp tied up rto rican debt and bond documents show almost a quarter of this deal went to pay them back -- nearly 900 million dollars-- to pay back loans, pay fees or eliminari othe for banks directly edvolved. >> sullivan: they the 2014 bond to get them out? >> that is correct. s livan: then who gets left paying the bill? >> the bond holders, whomever they are. the banks get out, and everybody else gets stuck wit

as well as tokyo perhaps after macron was downgraded by morgan stanley.saw a surprise contraction in april. it rose 13.5%. it was a bright spot for the economy when policymakers are warning of a potential downturn. checking on the offshore yuan postingaround 640 after the biggest monthly drop since november 2016 given the dollar's resurgent. that will be closely watched for signs china is using the currency to protest against terrorists --tariffs. oil is set for a second weekly loss to a record and opec situation, that remains in flux. they drop to 5% since last week. crude is back a little bit at 67 there. yvonne: sophie, thank you. resigned after accounting practices and corporate governance. they have suspended since last friday, when questions lead to a 20% drop in the hong kong listed . we have the very latest on this. steve, how much do we know? >> we know to mueller has resigned effective yesterday. he is citing personal reasons, but obviously, it is a response to these allegations coming from barca -- blue orca. related party transactions between

>> morgan stanley i have been in for quite a while. there was a bit of a technical breakdown yesterday, and discipline dictates when you get the technical breakdown and get to the level where you would still want to protect the gains that you have in the stock, you move out of it you take the capital, move somewhere else wynn trust financial, it's a regional in the midwest area $92 stock. that stock could trade close to $100 i'll take the capital from morgan stanley, put it there i like more of the domestic orientation. i still have bank of america, i still have interactive brokers just a little opportunity to reallocate >> lori, welcome nice to have you here with us on the set. you backed off your year end target by about 100 points, s&p points, about a month ago. but you're still very optimistic about where we can get to from today's s&p price. we're at 27.23, you're looking at 2890. let's call it 2900 what gets us there >> we still see the path higher. arguably, it's difficult to figure out what gets us there in the next couple mont

david: the second story, this is morgan stanley. a good management business and wants to make it better. he has a plan to do it involving blackrock. he has touted the fact that you can get a better deal with morgan stanley because they have allowed in. -- aladdin. brooke: it is basically to point out outliers in people's portfolios. you may not know you are over positioned in risk, but look at what you are holding. ubs also has this technology. morgan stanley thinks it is a better position because it is fully integrated into its platform. david: that is for high net worth individuals. goldman has an app for you. brooke: it is interesting, both of these trends in technology are popping up and traditional banking roles and using that to subsidize the advice they traditionally gave their clients. the asset class looks at who your investors are, how your company factors into their positions. are you outperforming their other holdings? that gauges their likeliness to act as active investor. if you are doing that well in that investor's p

morgan stanley raised its waiting on roku. the analyst cites solid user growth and says that roku is growing into its valuation now. price target $38. that stock was up slightly to $38.60. >>> still ahead, saving for college. there are some simple plans to help finance education so why aren't more people using them? >>> a private equity firm that you likely have never heard of is quietly amassing a global food empire, and it grew a bit more today. jab holdings has now agreed to buy predemonger. that has been rapidly expanding here. j.a.b.'s portfolio is full of familiar names, but its own name is virtually unknown and it isn't exactly your typical private equity firm either. >> predemonger, which is french for ready to eat, is a british sandwich and salad specialist with 500 stores in nine countries. fewer than 100 of them are here in the united states. the deal reportedly worth almost $2 billion adds to j.a.b.'s rapidly growing portfolio of fast casual restaurants, which also includes au bon pan and panera which it bought for

morgan stanley trying to entice junior bankers to come and stay by offering more perks.he changing face of wall street. there is an increasing number of people in themore workforce and shifting more to engineers and competing with silicon valley. is that what we are seeing here? is that what we are seeing here? add: it is fast -- ed: it is fascinating about how they recruit and a tract young talent . it is not just about money these days it we need to give them play rooms and more time off. what money talks. morgan stanley is recognizing that if it wants to keep its keep them from going elsewhere, they have to pay them more. that is what they are doing. they are bumping up pay to 25% increases in hopes they will stay. others did this with pay raises and they branded themselves. lisa: i will say they work hard. goldman sachs -- we should get into what we have heard. he said "equity trading 15 to 20 years ago had 500 people making markets and stocks. today we have three." is this the death as we know it r transformation? ed: we are seeing this in our own industry. it is no

. >> there's a famous picture at morgan stanley of the entire puerto rico financial teamin celebr theyd their hands up, they were smiling. you could tell from the body language. i said, "i don't kw exactly what we are celebrating here. this is not good." >> sullivan: the celebration didn't last long. just 15 months later... >> late today puerto rico, home to nearly four million americans, defaued on its largest debt payment so far. >> we're calling it erica's greece, and for very good reasons. the fact is puerto rico, yes, they have just run out of other people's money.th >> let me pu very clear: we are out of cash. >> so chapter nine... >> sullivan: within a year, congress put puerto rico on a path to bankruptcy and the financial control of an oversight board.ep but wewondering, why would the banks do a $3.5 billion deal with an island on the verge of default? the bank said they were trng to help puerto rico manage its finances. but we talked to half a dozen people who either worked on the deal or were close to it. what they said, is that this deal seemed to be more than just a bond d

that was the chief municipal strategist at morgan stanley. vonnie: still ahead, president win.'gs up a just ahead of along with david westin. meantime, the dow and the s&p down about .2%. wti just ahead of inventories at $72 per barrel. this is bloomberg. ♪ caroline: we have the conference right here in paris. could check on the markets. stocks are trading lower. it is the worst day stoxx 600 in two months. and the daxorming is trading lower with worse than expected weaker growth in germany and note we italy on the back of political ramifications of the populist government. vonnie: a surprise this week for oil inventories. at seven 7jor build million barrels. the market is looking for a drawn -- this down. maybe not quite as much as .xpected inventories also a build. and that was a build of almost 1.9 billion dollars. by pointt is falling -- .8%. we are expecting president trump to assign legislation revising the dodd frank act. by raisingease rules the threshold for oversight. >> thanks very much. we are here when it comes to things like capitol hill, mark, welcome back to the

the sack change morgan stanley's fortunes, but it's a small part in it should happen. how does the deregulation story help with lending? lending has been on the rise from the tier of banks that are below the threshold for some of these most significant regulations and the change in not the volcker rule, but the other regulation a couple of weeks ago altered the capital requirements and will further allow the smaller banks to continue on lending. the big banks, keep in mind, they have a different business model. it's not so dependent on lending. rule -- so, the volker will not have that impact on their. some, if they do cut back is a going to help the big tanks in terms of saving money on compliance? or will they change their behavior and become more speculative? catherine: i don't think we know the answer to that. one of the things at issue is whether or not the banks have sufficient room to maneuver when it comes to providing liquidity. is one of the big questions and whether or not the interaction of the regulation will alter the availability for liquidity in the mar

morgan stanley, upbeat. we will talk to them.onne: we are live from bloomberg's asian headquarters. asia.ak australia markets hate into a new week on the back of their best winning streak in two years. energy stocks have led the way. malaysia andns to elastic sister election. betty: president trump does an about turn on china, ordering the commerce department to help zte stay afloat. jamison quits as xerox does the blog. -- the plug. yvonne: we have been watching u.s.-china trade. a lot of data this week. focusing on one data point in particular that scenes -- that seems an ominous sign to global earnings. zte, south korean export growth, we saw the month of april fall for the first time since 2016. these epseighed on indexes. the 12-month estimates have started to roll over a bit despite the fact, that we have seen the u.s. and europe continue to rise. haveand em suggest that we peaked in april already. to followe tough in the region. betty: that is not good for the kospi, which is already suffering. msci news on china, if the n

morgan stanley i am an independent financial advisor. i left a traditional brokerage firm because i wanted to be free of their constraints. at my firm, i act in the best interests of my clients. i can tell them i'm supported by one of the world's strongest, most admired financial firms. fewer constraints, the freedom to do what's best for my clients. that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com here's your cnbc news update at this hour. "the new york times" reporting that president trump told french president macron the u.s. plans to withdraw from the iran nuclear deal it says the u.s. is preparing to reinstate all sanctions that it had waived as part of the nuclear accord and impose additional economic penalties as well but, macron denies "the new york times" report. >> two people were arrested for connection with the islamic state group in southern spain. the pair were part of five arrests carried out in cooper

breaking news on morgan stanley. vonnie: the stock down, tumbling shares after comments from deutsche bank global financial services conference. the cohead of morgan stanley's wealth management says the bank sees net income growth slowing causing the shares to tumble. also a headline out of the white house. be alsopeo is going to be also meeting as well this week with -- i will get that back to you in one second. onmp and a meeting on -- abe june 2. let's check in now on the first word news. >> president trump sending a hawkish message to beijing days before the latest round of trade talks. moving ahead with sanctions on $50 billion of chinese imports. the white house is the final list will be released by june 15. both the u.s. and north korea are signaling the summit is still on. kim jong-un has sent one of his top aides to the u.s. for a presummit talk. it is north korea's former spy chief. president trump tweeted the trip is a solid response to my letter. in belgium, prosecutors fear and attack the left four dead

david: in the broader span of history, goldman dated, morgan stanley did it. -- goldman did it, morgant. coors blameslson ak beerbers on we sales. this is bloomberg. ♪ ♪ this is bloomberg markets balance of power. head tos u.s. delegates china, president trump delayed the decision on whether to -- including the eu and canada. guest is president and ceo of the beer institute, joining us from washington. it is great to have you with us. i have to go back to a commerce secretary ross said when these tariffs were being considered. he said an additional import tax of 25% on steel, that is the 10th cent that would be very small when it comes to how it affects companies, especially holding a soup can last time. what has been your reaction so far in the beer industry, the rands that you represent -- the brands that you represent? >> we take issue with the way secretary ross characterize the impact to our industry and other industries. we estimate that this is a $350 million tax on beer brewers in this country in a time when there are more breweries than ever the unit states. we are in a very -

great to have adam jonas of morgan stanley.tune in next week because not just tesla but all of tech when bloomberg tech heads the boston. fromr will broadcast live a different location each evening, showing the diversity of the regional tech economy. bloomberg radio will also be live in boston. the st. louis fed president has been speaking and he sounds dovish. he says, do not raise fed rates and do not risk inverting the yield curve. sees tax reform could spur faster growth without inflation. talk about that yield curve potentially inverting. david: he is rooting for a steeper yield curve, who could blame him. coming up, we are going to talk trade next week. next on what the to expect from the meetings. this is bloomberg. ♪ kailey: this is bloomberg daybreak. coming up on bloomberg technology, an exclusive with -- president premier will visit washington, d c, to continue discussions with trump's economic team. the person we turn to when we want to understand china is deborah lehr. welcome. what do we know about this visit ? de

and financials really dragging the dow down, morgan stanley and j.p. morgan leading bank stocks tumbling. responsible for a third of the decline. all 69 of s&p financials down today. nicole is live at floor of the new york stock exchange. reporter: noted it, we saw selling across board, dow jones average, lowest level down 505. it kicked off with political concerns in italy, concerns about antiestablishment elect there. and whether or not that government would move in and pull them right out of the euro. we saw currency move. the nasdaq to the down side, and s&p down 1.1%, russell has not been affected. a small move down. and the best performer of the four year-to-date. looking at laggards, j.p. morgan, you mentioned financials that accounted for about a third of the dow jones average loss, and j.p. morgan down 4.2%, selling of broad-based, the financials got hit hard. and the 10 year bond yele that finish -- yield that finished 2.78%. we saw 10 year bond yield below 50 day moving average. looking at them one more time, morgan stanley a big laggard ther

a quick programming note, you don't want to miss our exclusive interview with morgan stanley chair andeo james gorman later in daybreak asia. that is at 10:00 a.m. sydney time and 8:00 new york time. let's get the first world news with courtney collins. to lower china is tariffs on a wide range of consumer goods on july 1, including duties on clothing and footwear, washing machines and other. goods and beauty products the decision comes after a meeting from the state council, and follows president trump's announcement that he will proceed with measures against chinese imports. the u.s. commerce secretary says washington is concerned that the wto and other international institutions are too rigid and slow to adapt change. he told the oecd in paris the trump administration would embrace multilateral funding if disputes and failed to move faster. the president is due to hit europe with new tariffs, he said. organizationsal said here's a list of 10 things we must do right away. that kind of approach, as opposed to study groups proliferating more study groups is the kind of thing that gives

will go to shareholders whereas employees will only receive five percent another such study by morgan stanley estimated that. forty three percent of tax cut savings will go to stock buybacks and dividends and just thirteen percent to employees by way of pay raises bonuses or employee benefits. and harley davidson has announced that they are shutting down their factory in kansas city which employs eight hundred workers some of the jobs will be transferred to a facility in new york pennsylvania harley davidson is also expanding operations to highland some say the move is due to u.s. markets which is contract in recent years harley davidson has their sales have dropped by eight and a half percent sales abroad have dropped by three point nine percent the announcement of the plant closure came just days after harley davidson said they too would provide shareholder dividend increases the iconic motorcycle company was touted by both president trump and speaker of the house paul ryan as examples of businesses which would be big beneficiaries from the tax cut law and this is it appears that the benefi

morgan stanley yourbut as you get older,thing. it naturally begins to change, causing a lack of sharpnessor even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. . >>> pumping the brakes futures in the red as the u.s. launches a probe into the auto import side of things. >>> luxury pulse check you'll hear from the lvmh ceo. >>>k takes on the media, what he tweeted that is creating buzz and backlash this morning it's thursday, may 24, 2018, you're watching "worldwide exchange" on cnbc. ♪ >>> welcome back to "worldwide exchange." half past the hour, i'm contessa brewerment. >> i'm dominic chu brian sullivan is on assignment today. >> let's check on what's leading on cnbc.com. the trump administration launching a national security investigation into car and truck imports, this could lead to new u.s. tariffs similar to those imposed on steel and aluminum in march.

morgan stanley is staying around times square.se are two big firms that will be in midtown, but there's going to be a lot of movement. vonnie: look at that. the moves out and the bar chart are phenomenal. just staying in midtown, that was not all about being physically there. it was also about wall street bankers just hang out together, information being passed at the bars. what happens to all that? rob: it's a bit of a historical piece. what happened in the 70's, 80's, 90's is that banks started looking at midtown is a good place to meet their clients and do that kind of thing. in a lot of cases, it sort of split the people who did the back office work and a lot of the traders stayed downtown . the banks shifted the client facing businesses to midtown. they decided they were hurting themselves by not having that communication and having everybody in one place is a helpful thing. vonnie: it's pretty ho phenomenal because it has acquired millions of net feet of spaces. what is happening? are there more employees, businesses? rob: t

morgan stanley sees the potential. 1.18 is how we print.hlight what is happening in italy. italy, bonds on offer. moving higher by nine basis points. seeing a wind up shift? and crude oil is still off. david: it worked so well the first time. i think they will do it again. time now for the first word news. >> the fate of the first word of the iranfate nuclear deal is in the president's hand. has called it the worst deal ever. he said it doesn't do enough to address iran's ballistic missile program. trying to work outside agreements that would address the concern. for the second time in less than two months, the leaders of north china have met. -- a wall street watchdog eric schneiderman resigned last night. that story was a new walker magazine. in new yorker magazine. global news, 24 hours a day. powered by our more than 2700 journalists and analysts, in more than 120 countries. alix: we know what trump thinks about the iran nuclear deal. here is what other officials have to say. on thep has called congress and european allies to create las

the london-based company is working with morgan stanley to advise on the plan.ling three packages in a highly prized permian basin worth $10 million. yvonne: shares jumped after it said it is converting from a partnership to an administration. effect structure takes pay $.50kr expects to per common share. betty: four deputies have been valeoyears after didier left the bank. he was an 18 year veteran at the bank and widely seen as a potential successor. sources told bloomberg his departure was related to a u.s. justice department investigation into alleged manipulation of benchmarks. we will be watching banks later on today. turn to your bloomberg for more on this. tv is where you will have to go to get commentary in the throughr to talk you those earnings. investors will have a close eye on the latest jobs numbers out of the u.s. friday. we look at what to watch next. eak can see a couple of w wage growth numbers. will we see a bounce back in april? this will be crucial on the back of fomc statements which said they will not respond aggressively even if inf

morgan stanley tso why binge in here, when you can do it out there.th this clever little app called audible. you can listen to the stories you love while doing the things you love, outside. everyone's doing it she's binging... they're binging... and... so is he. so put on your headphones, turn on audible and binge better. . >>> and we are back with president trump's lawyer rudy giuliani. let's talk about potential interview with the special counsel. you told my colleague kwochris chris cuomo that robert mueller has two topics sgrmpt h stopics >> it is contingent on every point being worked out. if everything can be worked out then they would probably limit it to collusion and obstruction. the collusion part we are pretty comfortable with because there has been none. the obstruction part i'm not as comfortable with. the president is fine with it. he is innocent. i am not comfortable because it is a matter of interpretation, not just hard and fast, true/not true. if you interpret his comment about firing mueller -- i'm sorry, firing cohmey -- if you see

morgan stanley sees another 4% decline by year and.hat is on rising debt concerns and declining terms of trade. sydney features a bit more positive, about .25% higher your riyadh aussie dollar at 75.1 two, and the kiwi continuing to put on some gains their. we talked about commodities, oil with brent hitting $80 a barrel since 2014, coming off let a little bit, and wti holding at $70 .45, and the broader commodities index is putting on a show, about point 25% higher. let us get the first word news now. >> european leaders are presenting a united and a determined front of against proposed u.s. tariffs and washington's threats to the run deal. the block spoke in bulgaria. the eu said it would continue to fight for a rules-based system and will not negotiate with that a permanent tariff exemption. .owever, it sees no outright >> trade war will not launch a trade and war against american companies based on what is happening in iran. >> that would not make sense, because the goal is to get this broad agreement including with the signature o

the barclay's, deutsch analysts, i believe piper jaffray, goldman sachs, morgan stanley and suddenlycedes the floor to you, and we worked with elon for years. i think i was the first journalist on television to interview him 100 years ago about spacex, but maybe he was feeling attacked and thought i'm going to get softballs from you. i would like to say that you started asking him about that very floor that elon and i are on right now. where they make the teslas in fremont and you brought up the model y which is supposedly the new upcoming car. you asked will it be made in fremont? that makes news, whatever his answer is, correct? >> there was a reuters report that it would start in late 2019 which is in direct contradiction with the previous call. i wanted to clarify that. liz: another analyst pushed him and said no, it's going to be wrong, it's going to be probably 2020, not 2019, right? >> yes, exactly. liz: what do you think of elon musk now? he was rather harsh on some of the analysts. do you feel he gets a pass because he is such a disrupter, and, you know, let's keep in mind g

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

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the previous financials that i mentioned, morgan stanley and kkr, value act did not seek a board seat in their letter they did analogize this investment to microsoft in which they did get a board seat there 2013. it's unclear if they will push for something like that. right now it seems like they're happy with citi being a boring bank >> we'll find out. i know you're going to vegas, safe travels if you hear anything about a fusionist, we know the world of food and money have he merged. do you have a deconstructed s'more i could use one right now. >> i do. >> thank you >>> the cfo of snapchat is out the company saying he's leaving to pursue other opportunities. he's being replaced by tim stone. snap shares down 44% in just 90 days. >>> tesla stockholders, elon musk is trying to help you out regulatory filings show musk bought another 33,000 shares the addition increases his stake to about 20% last week musk promised to burn those betting against tesla, which has not turned a profit in its 15-year history. >>> investors in hertz are hurting. shares likely to drop today. the car rental c

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shows bank compliance officers repeatedly trying to figure out what michael cohen was up to, morgan stanley smith barnny filed a report saying that the transactions in michael cohen's account there showed signs of, quote, bribery or gratuity. previous reports have indicated that the fbi raid on michael cohen's home and office and hotel room was -- those were in search of evidence of multiple criminal offenses, including bank fraud. when michael cohen opened a first republic bank for essential consults llc, he told the bank the llc was set up to use his experience in real estate to consult on commercial and residential deals. he told the bank his actions would be modest and based within the united states. in fact, the compliance officers wrote, a significant portion of the target account depo sirts continue to originate from entities that have no apparent connection to real estate or apparent need to engage cohen as a real estate consultant. a significant portion of the deposits continues to be derived from foreign entities. david murray, who will join our conversation, told the new yorker,

he's already dealing with a price cut from morgan stanley today, morgan stanley talking about lower profitability concerns at the automaker, and then have you this, there are reports of model s involved in a crash using autopilot feature at the time of the accident. this happened in utah on friday. there are the pictures. tell you what, musk is fighting back, taking exception of the media coverage of that crash. he says and wrote this in a tweet, what's actually amazing about the accident is the model s hit a fire truck at 60 miles per hour and the driver only broke an ankle. an impact of that speed usually results in severe injury or death. luckily that didn't. and the driver says autopilot was on. we're going to take a look at this during the hour. there's two sides to the story. folks. >>> take a look at home depot, this is a stock showing cracks in the foundation. this is the home improvement store, of course. the stock falling. they reported revenue and same-store sales that miss analyst expectations, unfortunately. they're blaming the unusually long winter for the mess. all about the spring