jp morgan behind us, goldman in front of us.longside us to break down these members in just a moment -- these numbers in just a moment. this is bloomberg. ritika: with the first word news, i'm ritika gupta. white house officials are considering a digital trade agreement as a way to counter china and asia the proposed deal could cover companies -- could cover countries such as china, japan, australia, and singapore. it includes rules of use of data and trade facilitation area the biden administration reportedly will warn american come news of the risks of operating in hong kong. according to the financial times, those risks include china's ability to gain access to data that foreign companies store there. another one of the concerns is a new law that lets beijing impose sanctions on anyone that enables foreign penalties to be implement it against chinese groups. prime minister boris johnson's decision to ease coronavirus restrictions in england has led to growing fear and calls for action. doctors warned that the fresh toll of th

what's the model dividend growth that jp morgan can deliver? you look at the excess capital that these banks have including j.p. morgan chase, dividend growth should be considered into the high single digits. i think that's reasonable anywhere. these are not double-digit dividend growers. there are period like the one we just came out of where some banks increase dividends by double-digit rates. last year they were frozen because of the pandemic. there was a catch up in the recent announcement about dividend increases. tom: are you starting with a cash on cash return? >> i think you can see that the combination of the share repurchases in the dividends could easily exceed earnings not just for jp morgan but for the industry. that would suggest we could see those types of numbers that you mentioned from jp morgan as well as some of the other banks in the large bank universe. lisa: there is a high bar and they met it with almost everything. yet the shares are lower in premarket trading. what's your response to that especially given that the only o

how does he ensure that those businesses are better off inside jp morgan than they are outside jp morganwo pieces to that question. let me take the first piece. it is interesting that jp morgan has made three acquisitions recently, i robo advisor in the u.k., a neo-bank in brazil, and something similar in the asset management space on the west coast. our recent merger with circle is all about the advantages of technology in terms of competing with the large legacy banks. blockchain has had a big impact. a lot of people don't really understand why we are talking about blockchain so much, but if you are think about a large transaction from one's institution to another, a large sum of cash, typically that has required a middleman, a credit card company, visa or mastercard , or a bank like jp morgan or b of a. with blockchain, and with the speed of the internet, what we are seeing is that these transactions can be done without the middleman. they can be done faster, far less expensively. the cost is going down. but with blockchain, it also gives us the opportunity to have real security in te

goldman sachs and jp morgan both falling today. you can see after reporting their results, there is another big slate of bank earnings coming your way tomorrow morning. we have your setupcoming kcominh show >>> michael sonnenshein from grayscale investments. we'll talk about the move. crypto specifically coming up. we end the day with gains and take a look at some of the big names in the industry. apple, alphabet. they may have ended with highs on their day but they set new records at the closing bell even as the broader markets pulled back from the all-time highs so what do we make of the big move in tech i'm going to turn right now to my right because it's karen finerman right there it was coming really full steam today. what do you make of the record highs? >> i'm not quite sure what to make of it, actually i like facebook, i like alphabet, amazon the only f-maga i don't own is netflix. i'm happy to see they were all trading higher they are kind of that mix of growth but, i think, decent value. so you can kind of pick your poiso

jp morgan and goldman shs beat estimates but results failed to impress wall street. and the white house is set to one american companies about the risk of doing business in hong kong, ramping up pressure on beijing. let's look at the trading session in wall street. you can see the s&p 500 with 39 record closes this year down today. the inflation report came in a much stronger than expected. the headline is nearly double the 0.5% people were looking for. jp morgan and trace reporting mixed results as the earnings season kicks off. a big story in bonds. that 10-year note is now up over 1.41. the 30 year bond option was the big mover today after declines. it did not go well. after a strong inflationary report, no surprise. crude hit a 2.5 year high today. there were warnings of a deepening supply crunch from iran and other major producers. what are you looking at? sophie: looking at a soft start for asian stocks. chinese tech joined the advance on tuesday. we do have the rbn policy decision. we have got to see

four of america, jp morgan, -- for bank of america, j.p. morgan, that is yes.h investments in digital and technology that has enabled them to improve that ratio. it is a simple ratio that captures their whole business. it is kind of a second derivative for analysts as we look at what is performance. tom: i see a moonshot on the chart and it is what jon is talking about. we are using digital, we are using our phones. we all move money around to our kids. ken leon, what does zelle mean for brian moynihan, jamie dimon, and the rest? ken: you definitely want to be a player and take advantage of how society is changing behavior, how they shop and how they spend. but do not get distracted. i don't think brian moynihan and management at bank of america that a fiscal presence will help them. for the delayed rebound of the consumer for banking and small business, small business loans, they come to a local branch or to a financial center. we are also seeing market share gains of the large banks and even the top 100 metropolitan markets in the u.s.. it is kind of a boring

as well as jp morgan and yet both stocks are down.uch money sloshing around because of all of the stimulus money. deposits are way up but loans are down. if loan demand rises and those deposits create a powerful earnings upside, that's not the way investors are looking at this so far. goldman shares down two-thirds of a percent, jp morgan stock is down even with the better than expected quarterly reports, ryan. ryan: yeah. the song remains the same, to quote led zeppelin for a second. you're going to see the same theme across the board with the financials. we expected earnings to be amazing. there's a reason financial stocks are up huge this year. markets will be forward looking. loan growth picking up, let's face it with the gdp growth we're talking about, over 6.6% like goldman's saying here, business activity is going to pick up. it's inevitable. it's going to happen. i go back torques again, i suspect and -- back to again, we'll see the inflationary pressures pick up which means interest rates will probably go up more and that's h

from 500 to a thousand should that is according to the head of jp morgan u.s. wealth management arm. trying to work across the retail branches as well. did globali quickly become one of the worst ipo's of this year among news china is mulling additional penalties. we know that a number of the big ticket ipo's have not performed very well this year regardless of whether there has an a link to china or not. the risk aversion when it comes to companies like didi, looking at other companies in the pipeline, ever-growing as we talk about penalties and regulation. shery: seven james companies listed here. on average, they are 9% below their ipo price. the performance has been pretty mediocre. we now have another source of anxiety given we are now hearing that we could face -- that they could face unprecedented penalty. let's bring in crystal from new york should we sa -- from new york. we saw didi fall to another record. what are the penalties they could face? >> the most extreme case, they can even get delisted. facing a class action lawsuit and exchanges in the use

analysts expected that to come in less than goldman sachs and jp morgan this quarter. y came in more than both of their peers. that miss on fixed income trading, remember, morgan stanley brought it close to $3 billion worth of fixed-income trading revenue just about a quarter ago. that was unheard of for morgan stanley just years ago. now, $1.6 billion. it is a solid print, more than what james gorman had been guiding for, but again, less than analysts expected. so what to make of this trading slowdown generally across the street? that return on equity did beat analyst expectations, but the comparative story is what analysts and investors will also be looking at. that compares to goldman sachs' return on equity of almost when he 4%. so this game -- almost 24%. so this game of efficiency continues to play out on wall street. tom: mr. gorman says this note was put together by people sitting in an office. that was a joke, folks. e*trade, eaton vance and the rest, are they a part of the earnings story? sonali: they are a germane part, a huge part of the company. we will wat

let's dive into the earnings, goldman sachs and jp morgan.bly well they do need to see a bit more lending. trading is down as expected. goldman is just a blowout. they are number one in everything with investment bank. they had an amazing quarter. trading was good took a lot of market share wealth management is incredibly strong this was an excellent quarter by goldman. it's up against very difficult comparisons about when -- people are going crazy with covid jp morgan, nothing but consistency but goldman is the big surprise and so far, so good. >> part of the question is, we've been talking about this this morning how do you beat expectations when there's already so much baked in the stocks have really run now the question is what comes next, right? >> there's critics that say there's a one-time story here, goldman tas taken private equity gains plugged into asset management private equity gains have been consistent in terms of -- everybody keeps saying they're one-off. this is the quarter where people are saying they're not one-off and the

jp morgan and goldman sachs will raise the curtain. release, or the drop in trading? which will be more important to the equity valuation? good morning. in u.s. bank stocks? >> in u.s. bank stocks, it is up to the bank how much they want to release the reserves they put away. they have a broad latitude in terms of doing that, is not like trading revenues where you make money or lose it. the load reserves has a fair degree of latitude the banks can employ. they might release a lot and they might release very little. some banks have been more aggressive like jp morgan, and then wells fargo has been more cautious. i think they are trying to catch up this quarter. it is hard to say. bear in mind, the trading revenues are very good. this time last year in q2 of 2020, we saw equities and fixed income trading go through the roof. now they will be down about 30% compared to that quarter but we are still way above pre-pandemic levels. things are still looking very good. it's known as if the trading has fallen through the floor. still good volum

jp morgan lending to the rich, not part of that club. lending to the rich was phenomenal. lending to mainstream was stagnant. on top of that, a rabid inflation number, the highest since 1991 on the core. i started trading commodities badly in 1991. with the lack of lending keeping money in the bank, inflation, it is not helping feed -- i think the bank of america said it is taper -- which one should we be more frightened of? dani: in the markets it is a period of gestation. the moves are confounding. deals were barely changed after the hot cpi data took a 30 year bond yield to get any movement. it is often contradictory trading, as marcus try to figure out what is next. manus: the dodo flies, take it away. dani: kiwi dollar, the dodo is taking off after a hawkish tilt from the rbnz. it is gaming 0.9% -- gaining zero point 9% against the dollar. the 30 year bond yield above 2%. tepid at best, but got bond yields moving higher. looking at moves in the dollar, giving up ever so slightly the gains yesterday. one of the biggest gains so far this year for the dollar. and an equi

jp morgan said that you see a pickup in car spending which does translate into loan growth. gerard cassidy looked at j.p. morgan earnings and said that was a key idea to see what consumer was doing with card lending as well. "balance of power" today, annmarie hordern and tom keene in for david westin on the linkage of economics into our policy. on fed policy, julia coronado scheduled for a macro policy perspective. the vix from a 16.00, the bloom of 16.70. stay with us on radio and on television. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for max

jp morgan sticking with their trade. they say the current market positioning is not justified, adding that what you will see with the vaccinations is a move higher in bond yield value and cyclical stocks. eight percentage points was the lag of some of the counterparts over the course of the last month. the most since 2000. let's check in on the market action in more detail. the s&p 500 mini future stories called higher. u.s. 10, 147. the hawkish shift in monetary policy. of course, it is helping the trade in the last couple of months. then you have the euro-dollar, 118:40 -- 118.47. kind of define the strategists, those who were calling for its demise and further deceleration of momentum. that has not come through. brent crude at $74 a barrel. citi saying we might get a surprise from opec-plus, that could lead up to the actual meeting in the coming hours. a big point in this program. now to our top story. robert kaplan says scaling back the central banks asset purchases should be done gradually. speaking to bloomberg, he

in the last hour reaffirms 4400 for jp morgan. i'm sorry, what they are doing in every other shop as you say, they are waiting to get the first gloss of earnings, and assuming it is a zeitgeist, it will be better than expected, they will go what you think, i don't think a 5000 but they will all come up. jon: they will come up to watch, lisa? the slow grind is pushing them higher. record high after record high. lisa: i'm not going to get my quarterly expectation of where we will end the year on the s&p. what i will give you is backing the grind higher in the equity market, we see a grind lower in corporate bond yields. if we take a look at good spreads, the extra yield you earn dropped to a new low of 80 basis points. this is shocking because it is almost near record lows. tom: translate that for me. lisa: this symbolizes two things, first, there is no concern in markets about a default cycle. number two, there is a real averaging or perhaps a doubling down on leverage in corporate america. you can see this from the net issuance, t

second quarter revenue of jp morgan shows opportunity bounce with consumers emerging from pandemic lockdowns house values are up your stock values are up. incomes are out. savings are up. the pandemic is in the rearview mirror. hopefully nothing gets worse. home prices, auto agencies, they could be much higher if supplies constraints go down. yvonne: it doesn't seem like the market, not as optimistic as jamie dimon himself. >> investors looking beyond this latest quarter which jamie dimon pointed out was the best quarter ever for jp morgan. similar to goldman, which had it second-biggest call, both benefited from these extreme flurry of deals that offset the decline in trading. both banks saw the decline in currencies, fixed income, commodities, a decline of 45% from a year ago to the big boom to the bottom line from the pandemic-inspired trading frenzy is now over. loan growth is flat. let's listen to what jamie dimon said. that is inflation is here to stay. he says it is not transitory as the fed believes and that adds more complication. bank released 3 billion in long loss reserves. doubl

tonight's episode features jp morgan members. to that, i want your take on these markets. europe, bigger than 3% drops. here on the s&p, more than 3% wiped off. not a huge amount but it has happened four times this year, and it looks like retail have boosted us back up to new records. what is going on? david: markets are obviously volatile but markets are up over all. when you consider how much they are up over the past two years, it is scattering -- staggering we can go up more. i would worry more about the markets when you see a sustained drop that goes on for several days. that is not likely to happen until you have an interest rate increase of some type or something that happened in congress that makes people worry about what congress does. i'm not worried about the market going up or down 500 points in a day. matt: it is all about rates and taxes. david: and general overall economic environment. no doubt covid is a factor, it went down yesterday because of the delta variant, but right now i don't think markets are affected b

christyan malek, jp morgan head of oil and gas research, joining us now.ttle bit about -- let's take a step back and figure out where we are, really. the breakdown in talks looks very dramatic. is it? christyan: it is a great question. a reality check is needed here. i think the precedent of last year seems to be extrapolated to future discussions. you are seeing a knock on effect in terms of volatility. the reality is that the prices surround changing baselines and changing extensions has been disregarded in this context. the uae requested a baseline ask in the meeting and surprising the rest of the group. that is different to a dispute analogous to what we saw last year. taylor: has this shifted to being a supply story versus a demand story? how are you think about supply and demand together? christyan: the reason why we are having this discussion around tapering is because demand is backing it up. they're having to understand or pull out a trajectory of volume ads, which was based around 400,000 barrels. this was about meeting that demand with additiona

to do that, joining us now is the jp morgan cio for fixed income.hank you so much for joining us, and what a perfect week to have you on given the price action. what do you make of all of it? what do you make of the change in the moves we have seen over the past couple days? >> i think this is not really something that has been happening over the past couple of days. we have been in this rally since the end of march and it definitely felt to us like it was very much a weighted money argument, just a huge amount of liquidity in the system and we have the quantitative easing programs from the federal reserve, the buying programs from the european central bank. banks are buying bonds as well and it was really driving yields down. combine that with the fed to bit that happened at the june meeting and may be flexible average inflation targeting was not quite as a breast events people had felt and the bed was not going to let inflation get out of control which brought out the long end and effectively removed all of those reflation trade and that really i

david kelly of jp morgan. jp morgan will kick things off tuesday morning i believe. we get cpi data. we will get commentary from the c suite that will be a different tone. tom: radically different and what is important is the tea leaves we have seen in the last two weeks looks forward to huge changes, a huge change in tone i should say. jon: every day to point -- data point. every single one speaks to the same thing, cost pressure, labor pressure. i wonder what the c suite has to say on that. romaine: and it gets to the idea of whether you talk about this as the growth story or more is just growing pains. this economy is healthy but does need to work through the supply issues in every aspect. jon: we talk about the pandemic next with andrew pekosz with johns hopkins school of public health. i'm told maybe a pfizer booster shot against the delta very it is in the making is that right? tom: it is in the mix and we are waiting on younger children. will there be a vaccination below 12? the numbers are fascinating.

bradshaw, jp morgan, director of aggregate fi strategy.virus search and lifting the restrictions in u.k. and the year. this is bloomberg. ♪ >> welcome back to european market open. european trading section looking very different than yesterday. we haven't -- we've been down by more than 2% made these markets this morning. and on that -- more than 1% this mowing. the u.s. has raised a travel alert to the u.k. because of the ongoing searching cases read the state department issued a do not travel statement after the cdc boosted its alert to very high. they said even fully vaccinated travelers are at risk of contracting and spreading the variant. julia is our consent -- executive editor. just a reminder -- what is it that changed. i noticed it was one of the most read stories. >> the came out and issued an advisory or alert that said do not travel to the u.k.. if you have to, you need to keep your distance from people, where mass, generally avoided it. that comes a difficult time. the u.k. and europe hoping the biden administration would move

the jp morgan survey as short as they were in 2018. end of qe, going into taper bill -- taperville. you sold the bonds, by the yields, sell the facts. 1.4% did not make sense given the growth trajectory, did it? dani: not just 1.4% but also below 2% on the 30 year yield. it is not a market that is preparing for inflation anymore. it seems like it is preparing for maybe even a policy mistake. growth at the long end there. i was talking to andrew brenner who was saying the market is concerned with the growth picture looks like six to 12 months from now. manus: the oil market from ecstasy to agony. down by 380% on brent futures. there is one word that changed the narrative. that is encouragement. the white house termed their talks with the uae, saudi, and other parties. the trifecta of dominant in this market are encouraged. global oil markets are encouraged. wti and the dollar fluctuated. the s&p 500, the narrative coming through from a number of houses we can run through these markets. equities, you still have a number of houses saying

right now you want yesterday it was where, arrival of paypal investing and jp morgan in 1851. i'm getting confused but 200 years ago, test have a great weekend, i appreciate you and i want to hand it over move it sideways,. >> i personally think they might take it for the weekend and run but maybe not. thank you so much. happy weekend to europe. record highs to red arrows, the dow accelerating losses heading into the close of final hour of trading 244-point that seven tenths of 8% so let's keep perspective, s&p and nasdaq hitting all-time highs at the beginning of the week so the question is stopped down, what can you do to wrap up investment? plus robin hood, e*trade and sulfite giving new online competition. the ceo, i started to loyalty and investing one of the biggest names in the market. we will get into that retail sales supply soon take over the retail revolution? one ceo is helping mike the founder, julie will be here to talk about that shopping dining out, hiking threatening to stop america's post- pandemic dharna and changing taxi while on just how dangerous the delt

jp morgan kicks off bank earnings on tuesday.re are warnings to brace for the end of the trading boom. details ahead. this is bloomberg. ♪ rishaad: let's have a look at what is going on now with tech as we have all of these headwinds for chinese technology companies in particular. tencent on the way up, maybe 4.6%. this talk having approval for the purchase of a search engine. that approval came through as well and they have been expending their gains thus far. up by 9%. this after a 29% decline so far within the last 30 days. yvonne: it seems like we find some kind of support now that perhaps people are buying these dips because perhaps we have priced in all the bad news when it comes to this whole crackdown. take a look at benchmarks. taiwan, fresh records. close to 18,000 for taipei here. led by these tech stocks by the likes of tsmc. semiconductors catching a huge bid and kospi with the same kind of effect. futures are still flat. we still have inflation numbers coming up in the u.s. later this week. india seems to be in the

outlook for markets but we have some investors that remain constructive on the region including the jp morgan asset management. this may to further economic scarring. we will be closely watching that. >> they were warning friday about the risk for companies doing business in hong kong. president biden spoke minutes ago about the changing situation in the city. >> the situation in hong kong is deteriorating. the chinese government is not keeping its commitment for how it may deal with hong kong. >> for more, let's bring in nick. does this entail any specific action? nick: they are not planning to take any specific action. there is not much they can do that exquisitely tells businesses they should not do business in hong kong. what we are told is this is essentially born of a feeling by the biden administration that multinational companies don't sufficiently appreciate the risks of doing business in hong kong. also, other actions that china has taken, anti-foreign sanction laws that actually enforces multinational companies -- u.s.-based sanctions and potentially facing the risk of that class f

david: jp morgan, head of asian equity strategy. vonnie: beijing is keeping an open mind on g7 talks aimed at reining in trade abuses like forced technology transfer and trade distortion. china says their scope for an agreement hopes it will be adopted by wto members. if they cooperate, it could be the most significant trading reforms since 2001. president joe biden is toughening up on federal employees requiring all workers to prove they have been vaccinated or wear masks and take frequent coronavirus tests. the plant will affect millions of people including the military and on-site contractors. biden is encouraging private sector employees to follow the same approach. this comes in response to vaccine holdouts. china has put out alternatives for a second investigation into the origins of the coronavirus. the foreign ministry says it will spend multiple countries. this counters the u.s. push into a closer look into the theory that it leaked from a lab. chinese officials say many countries are opposed to a second case study. the int

jp morgan, goldman sachs kicking off the season. h what to watch, what to expect, betsy graseck, morgan stanley global head of banks and diversified finance research. it was jp morgan's daniel pinto that said trading is back, that the trading slump is gone for good. do you agree with that? betsy: it depends on what your frame of reference is. trading will be down on a year on year basis, and a large part because last year was a banner year, and we all know what happened with spread compressions driving the bus on unusually higher earnings. we do expect trading is going to be down roughly 30% year on year, and that is what we are looking for. i think it is the forward look over the next several years. that is a different question relative to what we are looking for this quarter. guy: huge moves in the bond market this week. a flattening curve. we have obviously been watching what is happening in the impact coming through on the banks. what is the biggest driver? betsy: we expect to see some commentary around the bond market and with t

jp morgan also wants to bring the unit closer to wealth managers.street banks have been bulking up the businesses that cater to the affluent. intel says the worst of a semiconductor sales slump has passed and the ceo is sounding bullish about prospects for the rest of the world. intel's most lucrative business picked up. still analysts are worried the 9% decline in sales may signal a long road to recovery. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am laura wright. this is bloomberg. ♪ >> you lose something from connectedness by being so remote. while it worked well for the time, we are committed to getting back into our offices in getting back to the restaurants. tom: the gentleman from duke is with mcdonald's. there ceo. an interesting background. selling soap at procter & gamble and a background selling the best cheeseburgers on the planet. he is with david rubenstein. taylor riggs in for lisa abramowicz. our great honor to get some clarity on

jp morgan analysts saying it's time to buy again. apple hit a record high, $143 in january.loomberg. ♪ >> we've gotten a positive reaction so far. so we are hoping if it's another eight months, it could be longer, but things are going well. at&t teams are working hard, our team is working hard. very excited for these two companies to be together. we have a strategy that we've developed, we will see how hbo max does, how we do at discovery plus and we will see if we can come up with something, some best practice. caroline: discovery ceo david zaslow of -- zaslav giving some insight into the pending measure. stay with bloomberg for continued coverage of -- that goes on. ed ludlow is all over it. let's talk about education. with many children learning remotely, extra help for those struggling with change, there has been a huge demand. tutoring is helping every student reach their potential at no cost to the student. joining us now, phil cutler, who's been raising money for the company and out looking to wheel and deal with the actual school districts. talk to us about how your

that is very specific to jp morgan and citigroup, which we expect to hear from tomorrow.he business side of things from wells and bank of america. we hear from our global team that this is something we are seeing and a lot of the developed markets in terms of we have had a lot of the stimulus, and that has helped to bridge the gap for a lot of customers and corporations. one of the negative effects is we are not seeing the loan growth. alix: basically everyone has the money they need. corporations flush with cash, individuals flush with cash. do we have any color on what area might turn first? alison: i think if we look across the universe, one of the areas where we could see some revival is the commercial business. we will get a line of sight on that tomorrow from banks like bank of america and wells fargo. the utilization rates are extremely low again. think about year ago we saw these massive drawdowns and then we saw banks raising money and paying them back on the large corporate side. on the consumer side of things, we have $2 trillion in balances. it seems like that

taylor: we have with us jay barry, jp morgan securities, fixed income strategist.re looking at the positioning going on with the 10 year yield falling now for nine straight days. was this short-sellers caught off guard? jay: good morning. i think the catalyst was fundamental in nature, coming out of the hawkish fed meeting. and the data flow has been weaker than expected as of late, with payrolls over the last couple days, but the accelerant has been truly positioning. our weekly survey, which measures the franchise that we trade with at jp morgan, it shows even as of monday that 22% of our clients on a net basis were underway in fixed income, which is really the shortest of the survey has been since the fed was tightening in 2017. the shorter range of where it has been in the last 15 years. this is meaningful because the work we found is when the physicians are off average levels, it can bring things in the opposite direction. to the extent the dataflow and fed was a catalyst, it has been exaggerated by the shortage of scoring in the last few days. guy: take a ste

john bilton, jp morgan head of global multi-asset strategy. coming up, brexit is back as the u.k. seeks to renegotiate the northern ireland protocols. they will not leave it alone. we will break down what the implications are politically. this is bloomberg. ♪ >> we want to sort out the issues in the protocol. we think there are practical steps we can take to do that. alix: u.k. prime minister boris johnson talking shortly before his brexit ministers inform parliament he will seek to renegotiate the northern ireland protocol. the response from the eu? we are not going to negotiate. where does this leave everything? bloomberg brexit editor edward evans joins us now. this means there will be channel checks within the irish sea to make sure that nothing else is violated. what is the problem? why won't the u.k. go along with that? edward: because from the u.k. government's point of view, northern ireland is part of the u.k., and by opposing this -- by imposing this trade border in the middle of the irish see, you have put a great friction on trade moving from britain into northern irel

jonathan: michael feroli of jp morgan, always good to see you.k to what jim bullard of the st. louis fed actually said, he talked about the crisis , talked about the context of that original decision and how long that crisis would last. the crisis as far as he is concerned is over. tom: no question. we have to do a correction. the new york post article was really something. the dollar bill, the shrinking dollar bill. you can buy your new york post at your love mcdonald's. jonathan: is that where you are suggesting we were? tom: -- jonathan: i will go that story. chariman powell in about an hour. same story? lisa: how much did they press him on that story you just raised. what is the harm if you disrupt financial conditions from your all-time highs. the highest rate of highs from 1997 earlier this month. i wonder how much they will respond to that. why it is important to keep valuations where they are. jonathan: what i thought was interesting yesterday in terms of the second term was to have republican congressman say we endorse your second term,

that would be a book value trading this morning at 0.48 versus jp morgan, 1.9ish.n: can you imagine a transatlantic joining like that. tom: i do not see it, they have learned a lot of lessons 20 and 30 years ago about the train wreck. lisa: i wonder how much it affected credit suisse. let us put a name to the bank that you are randomly referring to. jonathan: we did not name a name. lisa: not only are they losing business, but also top members of their staff to other banks, and that has been coming out. you wonder how much they will be pressured by base. jonathan: they are going to do what larry fink did in the last 24 hours, just 8% across the board. that is pretty bold to say look, i am going to put my money where my mouth is and i do not think the inflation story is temporary, extend rates. tom: the terminal functions like to crockett -- calculate credit suisse is important and it is incredibly important to understand our new functions cha and go -- chan that can get you to the chanel website. jonathan: a bloomberg terminal subscriber says can you say happy

tom: jp morgan -- jonathan: jp morgan kicking things off.a headline out of haiti, the president has been assassinated. the afp citing the prime minister. tom: the prime minister with a 14 month term and there has been turmoil. the council of foreign relations have reported on the increase protests and the idea that he was working with the judiciary. there is a lot of ill will in the caribbean's poorest country. jonathan: the president was " assassinated." more on that later. coming up abby of goldman sachs on this equity market at 43 49. good morning. this is bloomberg. ♪ >> japan is comparing to declare a new state of emergency in tokyo. that would mean the summer olympics will be held without spectators. the paper says that the prime minister will make the final decision earlier today. tokyo reported the most number of new coronavirus cases since may 13. president biden will take on the threat of ransomware against companies and local institutions. over the weekend there was an attack blamed on russian hackers that affected more than 1000

jp morgan says china's crackdown brings unprecedented uncertainty.also watching dd, -- didi. volatility may continue on monday. that is when a 25 day a quiet period expires for u.s.-based analysts at the bank. didi are way below their ipo price right now, haidi. haidi: coming up next, we continue to talk about the pandemic. the politics of it all. and the blistering hate all at play at the tokyo olympics. we entered day three of competition. we get you the latest from tokyo, just ahead. this is bloomberg. ♪ vonnie: you are watching "daybreak australia." embattled prime minister in malaysia. parliaments will sit this year on monday. it will give lawmakers an opportunity to grill the prime minister over his highly criticized handling of the pandemic and the economy. an imposed state of emergency do to end. suspending parliament and ordinances without approval. south africa's president, cyril ramaphosa, unveiled a new relief package to help the economy recover from the pandemic and recent riots over the jailing of jacob zuma. the measures include reinst

jp morgan staying pat on their predictions for crude. aussie bond yields, we are seeing a push lower, seeing it basis as much as eightht points, tracking the drop we saw in treasury yields. pulling up the board to see the move in that, we have a 10 year rate notching its biggest decline since february for treasuries, capping a six day drop. in february -- zone back in february. it weighed on u.s. shares. analysts say that china's text crackdown is raising questions on sustainability of u.s. equity evaluations. haidi. haidi: take a look at that big story. didi tumbling below its ipo price following china's crackdown on the company over data security. the message from beijing goes beyond a single company it seems. some are seeing the move by regulators as trying to actively uej chinese tech companies from listing in the u.s.. for more, let's bring in bloomberg's -- who joins us from new york. is this a firm reminder of where your loyalties should lie if you are a chinese company? >> yes, that is certainly the case. there's two reasons why

the restrictions of the u.k., some news coming from the telegraph that jp morgan and goldman staff willter those restrictions get moved around in the u.k. in the next week. kailey: if you live in l.a. county, you better put your mask on inside even if you are vaccinated. the rules keep evolving and changing. the messaging isn't entirely clear, especially around this delta variant as it evolves and spreads. what we are being told we have to do is constantly changing, whether you've had your shots are not. jonathan: are we moving forward here, or moving just a little bit backwards? it's is a baby step backwards? i'm alluding to l.a. county. ed: there's a question -- lisa: there's a question also, what does this do to people gooding vaccinated if they have to continue to wear masks anyway? you get the likes of morgan stanley saying get back to the office. we will pay you more, but get back to the office. how does this, kate it when people are being ordered to wear masks? it is not very pleasant. jonathan: this is a really divisive story, and i am going to call it the most vice of story in

the ones graded on arcane line items like net interest margin, net chargeoffs then the jp morgan versus goldman sachs yesterday. wells fargo today. it's a parlor game played by big institutions that means little to regular people like you, unless you are trying to run up your portfolio with bank stock poised to run. we can play that, too. wells fargo was a star because it was the worst and now it's getting better a lot of room for improvement there. maybe goldman sachs. but what really matters aren't the individual stocks at all or their earnings they're the trees. it is the forest itself. what the banks can tell us about the rest of the economy right now. they have such a great handle on it they are nationwide and no more -- they know more than everyone my takeaway, the market is incredibly rich right now. the pandemic transformed us from chronic overspenders taking down credit card debt well beyond our means into a nation of marginal saver with the best consumer balance sheets in money. that's what happens when you get money from the government from nothing to spend it on except amazo

jp morgan also wants to bring the unit closer to wealth managers who work in retail branches. up the businesses that cater to the affluent. summer vacations in august may be a travel nightmare in the u.s.. southwest and american canceled about 3% of their flights the first six days of july, while more than 33% were delayed. that is much higher than prepend them at levels. the blame is going to capacity constraints, labor shortages, and unprecedented weather conditions. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm laura wright. this is bloomberg. ♪ >> i definitely think business travel will continue to recover. we were down about 69%. with the business travel component in the month of june, we are expecting that will continue to recover to be down may be 50% by september, and then continue improving after that. jonathan: the outlook for these guys is brighter. that is the message from gary kelly, a taste from the airlines in america, the southwest airlines ceo there. good mornin

a lot of the move i think was already baked in but we'll hear from jp morgan early next week.an they continue this run that they've had. so that's going to be the real important part when we hear from jamie dimon to start the week. maria: yeah. and that will give us a good window into what's going on broadly speaking with all of these worries about the estimates being too high for the second half. mike murphy, lindsey piegza, tom leiden, great to see you this morning. thank you so much. have a great weekend. great word on wall street. much more ahead this morning. coming up the ceo of parler is here, george farmer, discussing president trump's lawsuit against big tech and his fight for free speech. president trump with an op-ed this morning in the journal. then atlas merchant capital, the ceo bob diamond is with me, talking about his spac merger to take crypto operator circle public. in the next hour, president biden moves up the date for the u.s. troop withdrawal from afghanistan. new york congressman lee zelden will break down the risks plus monica crowley on biden's executi

. >> goldman sachs and jp morgan, the strongest growth. jay powell testifying onhi abou. mcdonald's owners are adding perks like child care or help covering tuition as restaurants are struggling to hire workers. franchisees aim to boost hourly pay. mcdonald's are making multi million dollars investments to back those efforts. and speaking of food, i-hop is bringing back its anniversary deal today african selling their events last year. customers can get a short stack of butter milk of pancake for just 58 cents. the deal available while supplies last. with your cnbc's morning business report, i am brian sullivan. >> we are going! >> much more ahead here, 4:42 right now. lawmakers in texas fleeing their state, how the democratic move blocks new voting registration. kari? >> as you are heading out the door in the tri-valley, we are nice and cool, a beautiful day so make some plans to get outside. we'll talk about the wide temperatures we have coming up in a few minutes. >> i like the look at this. the bay bridge, getting out of san francisco, clear as you are heading into th

don't want to completely abandon financials i think the big financials like the bank of america jp morgan goldman sachs, the theme atically stiff dwriven stocks of scale make sense longer term it's the regional banks. it's harder forethose companies to make money from net interest margin compression but the larger banks are better positioned. >> you can't tell me the larger banks, the ones i'm looking in the red across the board are doing anything in an environment where rates continue to go lower. it's not happening you know it too. >> well, think about -- no, scott, think about where the growth proposal is for banks, right? it's wealth management it's wealth management and capital markets. and that's where we're making our money in terms of continuing to have access to capital in the free markets but also wealth management let's talk about this. if you're going to see rates go lower then you're seeing portfolios shift into fixed income that's a transaction we're transaction oriented businesses that's why they continue to work. >> you're speaking morgan stanley business not everybody's b

jp morgan chase released its second quarter results today. >>> subway debuts a redone menu today andcelebrate its giving away a million subs. between 10:00 a.m. and noon the first 50 customers at east participating restaurant can get a free six inch sandwhich. a new menu includes 11 new and improved ingredients. six new and returning sandwhichs. >>> the next billionaire's trip to space has been approved by the government. jeff bezos received the go ahead to launch the flight. it needed to craft's hardware and software worked safely during a test flight. he is going up just nine days after richard branson. that's your cbs money watch report. for more head to cbs money watch at the new york stock exchange. >>> looking live from san francisco this morning where today supervisors could vote to make outdoor dining park lets permanent. it started during the pandemic. more than 2,000 have popped up in front of restaurants, cafes, bars and some retail outlets all over the city. >>> and a statewide pandemic era program could be made permanent. yesterday a key committee advanced a sale. >> the

krishna: i like the jp morgan, i chuckle at it.hat's how monetary policy is supposed to work, it is forcing you to do things you do not want to do. buying credit is what the fed wanted you to do and did they have been successful at it. as long as they continue down that path, it will be as easy as it is, and i think that the credit markets are in good shape. if you are a credit investor, you do not have much of a choice. you cannot buy treasuries, so the spreads are tight but they will remain tight as long as the fed continues to play ball. jonathan: i want you to know that people will be saying, everything is -- everybody is saying the same thing and that makes us nervous. what are the credit spreads, what do you need for wider spreads? krishna: you need a policy reaction from the fed that's more aggressive on the tightening side than we have seen or. we anticipate is that possible? yes. is it probable? probably not. in the early to thousands, spreads -- in the early to thousands, spreads were tight. i think it will be the same th

one wall street firm seed a certain ymt ocpaenstk could be the next jp morgan the details when we comet noodle houses and hot pot hotshots, thank you for the stir fry that gets us all stirred up. whatever you can serve, we'll proudly deliver. (lively music) delicia: this is where all our recycling is sorted -- 1.2 million pounds every day, helping to make san francisco the greenest big city in america. but that's not all you'll find here. there are hundreds of good-paying jobs, with most new workers hired from bayview-hunter's point. we don't just work at recology, we own it, creating opportunity and a better planet. now, that's making a difference. >>> shares of square getting a pop in our after hours trading after jack dorsey said in a tweet that they will focus on bitcoin. they will be focused on building an open source developer platform meanwhile mizzou hoe making a big call saying buying the stock could be like buying jp morgan back in 1871 kate has the details. >> that is right mizzou telling clients that square is not only a buy, it is like buying j.p. morgan 150 years ago. squ

in the early 1900s, president teddy roosevelt saw an economy dominated by standard oil and jp morganlroads. he took them on and he won. he gave the little guy a fighting chance. decades later, during the great depression, franklin roosevelt saw corporate mergers wipe out scores of small businesses, crushing competition and innovation, so he ramped up antitrust enforcement, saving families billions in today's dollars and helping to set the course for sustained economic growth after world war ii. he also called for an economic bill of rights including "the right of every businessman, large and small, to trade in an atmosphere of freedom, from unfair competition, and domination from monopolies." between them, the two roosevelt's established an american tradition, and antitrust tradition. it is how we ensure our economy is not about people working for capitalism but capitalism working for people. over time we have lost the idea that capitalism depends on fair and open competition. 40 years ago, we chose the wrong path, in my view, following the misguided philosophy of people like robert

thank god for them they've got two great ipo players supporting them which are jp morgan, goldman sachs. we'll see if they hold the syndicate bid or this drops down i've done hundreds of these deals literally. and my bet is this breaks deal price. and that won't be a good result >> let me me anastasia am rosa thank for being as patient as you have been >> of course >> the fact that a lot of big ipos and name brand ones have broken offer price, what does that tell you about the environment? as this one trades fractionally blee the trade price what does that tell you >> this is a red hot environment for ipos i want to compensate on the stuff about valuations and i'll talk about the broader environment too. the valuations of this particular ipo is not that out of whack with kind of the reality that we see for some of the fintech names. i know they've been compared to schwab and other ones. but the reality is the growth trajectory of a name like this is far far greater than what we see for some of the other names. i'll give you an example the average ipo last year at the time of pricing was

talking about of course are a slew of earnings from all of the big financials, goldman, citi, bank, jp morgan companies are going to begin reporting in a couple of weeks, and this does two things, but one of the more important ones is that it does tend to elevate options premiums in the near-term. so i was taking a look at citi bank and taking a look specifically at the august 6th, 75 strike call the stock was trading about 70 1/2 bucks today. you could have collected about $0.71 if you sold that when i was looking at it earlier today. that's more than 1% of the current stock price. those options expire 35 days from today again, collecting 1%, maybe that doesn't sound so great if you're collecting 1% every 35 days, that actually creates a material amount of yield, and you want to try to take advantage of situations where you have stocks that have had good runs where you think the upside might be a little bit limited. this is an investment strategy, do this again and again, sometimes it might go through that short strike, sometimes it may not. >> carter you view financials in much the same way