sonali basak we have to start -- sonali: you are having goldman sachs come in with $3 billion in equityng revenue, above all of the peers this quarter alone. investment making, they shine, also a strong beat. they also beat in the consumer business bringing in $2 billion worth of revenue. across the line, they have beat expectations. to tom's point on the return on equity, 23% just about compared with less than half of that percentage to years ago. this is shaping into not only a different bank under david solomon but turning into a firm that says they will compete in the businesses they own and that they are new at. lisa: tom said it is goldman sachs versus morgan stanley, how does that stand out? sonali: they are showing that they are going to compete with their rivals. we knew that the prime broker share was consolidating, but this is showing they are ready to pick up clients everywhere. tom: i remember in the heart of the pandemic you had the courage to get into a plane and talk with him. he said they need to enhance the scale paired what will they enhance in 2002? sonali: they are

sonali basak, what are the takeaways? what are the key takeaways here. nali: investment banking is on top. jp morgan really strong on underwriting, especially in equity underwriting that has not been deterred despite the volatile market. you get to the consumer and you see a lot of divergence. bank of america beating on the interest. stock is higher but citigroup is wavering between gains and losses. also, through the roof on investment banking and trading but people are looking through all their consumer businesses and seeing where are the weaknesses, where the gains and how far do we have to go? alix: looking forward to having you back. she is the busiest woman right now. other top stories, prices paid to u.s. producers rose last month at a more moderate pace than expected. jobless claims fell to a new pandemic low. we break it down with michael mckee. did good to take a break? mike: you learn how to do segues. are we setting off a debate on whether defense will raise interest rates? i don't like this chart and the reason is because the y axis is screwe

birds sonali basak is looking at -- bloomberg's sonali basak, abigail doolittle, and annmarie hordern. let's go to we work. you've got a failed ipo. wework is finally public through a $9 billion back deal. it is trading at $11.05 now. is this a success? sonali: i mean, this is a much smaller company. it is a success in that it is trading very smoothly and trading higher today. you have a market cap right under $1 billion -- or $9 billion. but of course, that is a far cry from the 47 billion dollars that we once saw it flying at. remember, adam neumann walks away with more than $2 million, despite stepping down from the board. he does retain some relationship with the company. however, this smaller, slimmer we work that still has a lot of losses to contend with is something that you see people buying the story for, at least for today. guy: we will dig into the details a little bit more of a little later on as we track the progress of the newly listed wework. let's turn to the earnings story we are tracking so carefully at the moment. it picks up even more in europe next week. there's p

sonali basak will break it down., jp morgan shaping up as follows, a little bit negative but a big rally off the lows of september 22. a conversation about the federal reserve them about the aspect of higher interest rates and a pickup in the kbw index. jp morgan down .2%. bank of america on the session of the free market out .3%. citigroup up .33%, too. capturing the earnings season was perfectly, and this is not the earnings of apple yet. lisa, we finally got running that maybe they got supply chain issues, too. jp morgan numbers drop, adjusted revenue, 30.44 billion dollars, the estimate, 29.6%. the estimate 13.19 billion dollars. the credit cost net benefit of $1.5 billion included. we will go to a ton of numbers here. you wrestle through a load of numbers, and you have the story. sonali basak will be going through those numbers now. she is going to tell us a story just a moment. third-quarter investment banking revenue, the estimate 2.65 billion dollars. that was expected to be strong. it is better than expected

something we have done and jonathan ferro does on "real yield," a distortion of our adjusted rates and sonali basakt has a lot to do with a company named black's bone -- blackstone. she is with jonathan gray. sonali: thank you for joining us. you are coming off what you call your best quarter in your 36 year history. records are hard to keep beating. do you tell your investors about where to go from here and how to squeeze out the next set of goals? john: it is great to be with you. i will just talk a moment -- stop a moment and talk about the quarter. we really delivered for our customers. we had nearly record appreciation in our funds. we had extraordinary fundraising for our shareholders, fee related and distributable earnings. and what's driving that is a couple of things. first off is where we focus in terms of investing, really dramatically. some areas like global logistics, software, technology, the travel recovery out of covid, all of those have done quite well in the quarter. the second thing i note is we continue to expand what our business is about, who we invest for, where we invest. we

joining us to discuss is sonali basak.t is not just anybody involved when you are talking about citibank. one of the most watched and respected analysts, mike mayo, has a problem with their structure for bonuses. >> yes. they don't like that. as was pointed out, this was disclosed a couple months ago. not a lot of people either paid attention or cared much. this is for three very renowned executives. what mike mayo has not liked about this was the lack of clarity for the targets for this transformation program. he said it is like charging up for dinner before we know if we are getting hotdogs or caviar. the question becomes, you know, are these bonuses appropriate? are they incentivizing the executives to turn around this business? it is the only bank of its peers right now trading below its value. amanda: the numbers involved are not huge, i would say. maybe wouldn't agree, but by wall street standards, it not leap off the page as a massive payout, but does it speak to a different tone because of citi's performance and wh

sonali basak has been following all of the analyst calls. what have we learned? y -- sonali: not only of the investment banking businesses doing well, but james gorman expect investment banking to keep on coming. that could be a big deal. we are still parsing through the ability of these banks to gain more share when it comes to the consumer. you are seeing so much divergence when you come to the other banks. take a look at citigroup. you have the shares fluctuating. they are finishing up their earnings call. it is a wait-and-see story for jane fraser. one quarter does not make a trend. there were major gains in investment banking. bank of america doing extraordinarily well. the ceo, everyone from james gorman to jamie dimon talking about inflation and the potential for rate hikes. still very sanguine on the economy. volatility is good for banks. weight correction, not as good for banks. we are seeing things in line with the former and not the latter. guy: as we discussed in that conversation and you've talked about many times, compensation costs are rising at a f

joining us as bloomberg's sonali basak. solid numbers. why is the stock down? nali: even with that decline in fixed income, they more than made up for it in equities. a huge boon for jp morgan. but on the other hand, you have a signal that expenses are going to rise into next year. you also have a signal that it will take some time for the consumer to really come back in a lot of different areas. analysts really pressured analysts on what they can expect for loan growth and would not give direct guidance on average lung growth. -- average loan growth. seeing morehead for jobs, higher wages, but they are still worried as we are talking about inflation. guy: the curve is flatter today. with a solid set of numbers, but the stock has come a long way. sonali basak covering jp morgan. the earnings season continues for wall street banks. let's talk more about what sonali was talking about. inflationary pressures persisting in the u.s. economy. consumers paying more for food and housing. that was a big component of the pickup we have seen in the latest cpi data. here to

sonali: i'm sonali basak. katie: and i'm katie greifeld.omaine: this is from just a few minutes earlier, president joe biden going to meet with house democrats to try and broker a deal between moderates and progressives in this party that would potentially break a stalemate over his economic agenda. the disagreement is holding up a vote on infrastructure legislation and a broader vote on proposed multi trillion -- trillion dollar spending. investors and businesses keeping a close eye specifically on how these tax plans might actually be affecting us. sonali: we will start by getting an update from capitol hill with our chief political correspondent, annmarie hordern. what are you hearing? >> the president is still in the meeting. he is likely taking questions from the group, as one representative put it, the president does not come to the capitol to conduct talks, he comes here to close a deal. they are making sure they are on the same page so they can push through the economic agenda. this all lies between the progressives of the party, wh

now let's talk to one of the correspondence behind that story, sonali basak. i am interested in all these types of trading and assets being looked at by these five individuals. what were the few key narratives you saw throughout? sonali: we spoke to people with $30 million in assets from $330 billion in assets. something a lot of them had in common were a few things. one, comfort with volatility and humbleness to know when you are about to lose money and how to deal with it. a lot of these folks we spoke to about what happened when they lost and won. the other big thing was technology. whether they were talking about crypto or what they call ats, the adapting to new ways of trading was something they also had to become double with. also a lot of them -- become comfortable with. also a lot of them started very young. they remembered being given a lot of responsibility early on. so, remember and how much young people have to do in the market is important. romaine: talk more about the adaptability. you mentioned the idea of the trading platforms have changed. some

sonali: i'm sonali basak. caroline: tech stocks leading losses. investors concerned about the persistent threat of high inflation. commodities soaring to an all-time high. today we are going to focus on the energy crisis felt around the world. romaine, we start with oil. opec maintaining its slow and steady oil production increases that many thought would be doubled. romaine: you take a look at this, it started with opec and expectations that they were going to do more. they are basically sticking to that schedule. we will talk to ed morris and this took a lot of people by surprise. nobody was factoring that in. now the question becomes, ok, if they stick by that plan, what do the other producers do? do you see a reboot of shale? and what about the demand-side? sonali: the demand side of the equation. we do not know what will be made of next year as well as some supply chain issues start to either wane or get worse. romaine: let's bring in atlantic council global energy sector senior fellow. you probably know her of a great book she wrote a few ye

haslinda: goldman sachs ceo david solomon speaking with bloomberg's sonali basak.rning calls. sophie kamaruddin is here. more data out this monday showcasing the inflation winds. sophie: in new zealand, you have the markets bracing for further. rate increases they expect the hike to come in the next two meetings. we have 10 year yield raising above 3% in --. in india, hsbc sees that higher oil prices will lead to a hawkish rbi. when it comes to the rupee trajectory against that backdrop, hsbc sees the end of the year at 35.50, lower-than-expected. but that rbi could see the rupee at 33 by late next year, as you can see here. rishaad: what about inflation and what about india? sophie: we have high input costs narrowing the margins for sectors like consumer staples keeping them under pressure there. but we have sequential recovery in that space. at nomura, they do expect the pickup in consumer demand will be going up in peace next year as mobility improves. that should help lift the markets as well as steer the. rishaad: ship toward discretionary buying sophie kamaru

for more, we want to bring in sonali basak. themes, so much as been looked at in terms of profitability. his technology driving that? >> technology is driving that only in terms of the dealmaking environment. when people are thinking about this digital landscape, goldman sachs talking about their creator economy. we were at their innovators conference. you have jp morgan, morgan stanley, each of those banks bringing in more than $1 billion worth of equity underwriting revenue in this quarter alone. that's the ipo market weight will continue to see. if it keeps going, they keep doing well despite the volatility. they will continue to hire. you have someone from morgan stanley saying they have a hundred thousand applications annually at the bank and they are absolutely hiring. for technology, they are investing. jamie dimon name checking a firm saying they are saying the competition, they are seeing firms getting into buy now pay later and other big areas that opposing real threats to the core credit business as we know it. carol

shery: morgan stanley ceo james gorman speaking to guy johnson and sonali basak.ollar holding steady at the moment after falling for two consecutive sessions. we have more risk on sentiment and that leaving pressure on the dollar. the japanese yen continues to be weak. the three year low still being felt across markets. you are seeing the offshore yuan study -- steady. we had a weaker than expected fixing. perhaps a little bit of discomfort with the recent gains we have seen on the yuan. take a look at the turkish lira. again, at a record low and continues to lose ground, past that nine per dollar level. not surprising given that we are seeing this incredible weakness after that surprise rates cut we saw back in august. paul, that weak lira is going to filter through the inflation concerns that are already at four times of the central bank's five-time target. we may see more changes in the board members at the turkish central bank. sources telling bloomberg that erdogan has fired central bank policy makers who were wary of cutting rates. he does have very unorthod

bloomberg wall street correspondent sonali basak is with us. nali: they are handing the reins over. this is in a long line of succession planning at many of the top private asset firms. you saw that move with mark rowen over at apollo, the chief at carlyle, and now joe bae and scott nuttall taking over at kkr. in 2017, these two men were named copresidents and were signaled to be the next leaders of the firm, so this is something we have known for a while, but certainly the stock has done extraordinarily well in that timeframe. this year alone, the stock has risen about 65%. so certainly, kkr on a tear. they are also moving to a one share, one vote structure. these firms are also creating a more shareholder friendly business as they change what they look like inside in terms of leadership. alix: sonali, thanks a lot. let's get to my special place. energy is looking to kick off the week on the front foot. we mentioned brent. calls coming out for $90 a barrel. abigail doolittle is digging through some of those moves. abigail: lots of green on the

dani: jon gray speaking with sonali basak. central banks will raise rates sooner than they planned and faster. policymakers sound worried that the pandemic inflation will stick around. still with us is janet mui, director of investment, brewin dolphin. we have seen the five-year break even. you were mentioning you see inflation more sticky than originally assumed, but has the market gone too far in terms of its inflationary bets? janet: i think the market is right to worry about inflation, because the signs are everywhere. it is in the supply chain, in the energy crunch, and there is no near-term sign this will be resolved anytime soon. there is a risk the inflationary pressure will be more entrenched within the underlying component. the latest consumer price index suggests the non-reopening components are driving inflation. there is a real risk this will be more entrenched than previously thought, and we are talking about a tight labor arc and high wage growth pressure that will feed through higher oil prices in the future. i

sonali basak is still with us. your early read on these figures? sonali: huge beat on the equities business, and he did beat on fixed income as well. the investment banking division also doing well. citigroup up there in terms of the top underwriters in the world in equity underwriting. i do also have to point out that when it comes to global consumer banking, their revenue has dipped quite a bit, about 14%. lower card balances was part of that. when you look at the international business, a lot of weakness in asia as well. there will be some questions about that, but the core business is doing quite well. citigroup has a much more global footprint than some of its peers , say bank of america, so how is it doing around the world also be of interest as we parse deeper through those numbers. lisa: the stock continues to go up in premarket trading, now almost 1.8%. we have seen pretty dramatic underperformance of citigroup versus the other banks coming into this earnings report. why has the bar been so much higher for citigroup to seem valuable to trad

tom: five basically think -- we will talk to sonali basak.k goldman sachs will buy the hamptons. jonathan: i'm not talking about the analyst class. i'm talking about further up. tom: joining us is adam parker. a very sharp of note here. i love how you say it's about identifying winners and losers. let's go type 2. how do you avoid the losers? adam: i think the number one issue in the market is going to be gross margin expansion. can you offset these rising input costs and pass it on to the end consumer? if you can, you will be a compounder and still a good stock. it's about growth profitability. tom: let's flip over to the winners. there seems to be two classes in tech. adam: give your high-margin company in semiconductors or software, you are a winner. i'm getting experience here. 20 years ago, the title of my note was "pure gainers or market expanders." i'm revisiting these themes and it still works. if you can expand gross margins, he will be a winner. a key controversy for investors right now. software, for low-margin company is already a

bloomberg's sonali basak setting us up. look how lucrative a trade it has been to be in bitcoin. you have seen a more than 80% rise year to date, and we are hovering right around $55,000 now, much higher than anyone at the beginning of the year thought it would be by this time. if you look at the derivative plays, look at the grayscale trust, the most highly watched measure of these derivative trades. it is up more than 30%. there's a question out there about whether you hold these derivative plays or whether you invest in bitcoin itself when you see those types of movements. if you look one level lower, you have another derivative here. for example, arc innovation's etf. cathie wood believes in cryptocurrencies, blockchain technologies as a key game changer to financial services. this is up about 3% on the year. if you invested in the physical itself, you would be up higher than the derivative plays, which leads you to wonder, what is the purpose of them? alix: that is such a good point. great stuff. you are sticking with u

sonali basak looking at this as well. we are up 1.5% in the premarket. morgan stanley breakthrough. the equities trading number was that one i was really watching for because of jp morgan's massive beat yesterday. morgan stanley maintains its lead at $2.8 billion, the biggest equity shock on wall street. let's see what goldman has to deliver us tomorrow. i will say the avenue -- the revenue came in a little lower-than-expected, so that is something analysts may ask about. but again, that solid beat in equities is really all morgan stanley had to deliver this quarter around. lisa: where, if anywhere, are we seeing the effects of the e*trade and eaton vance acquisitions? sonali: we can see it in the cost ratio because when you look at the other banks, morgan stanley had done well by guiding early on their efficiency ratio could be between 69% and 72% which is a little but higher than its rival investment banking counterparts in those businesses. but morgan stanley has eaton vance and e*trade to integrate. you see it in morgan stanley stock as their market c

let's check in with bloomberg's sonali basak. year-over-year, the comps really quite tough. just run through the numbers. sonali: it sets the bar for the rest of the banks. we know jp morgan is the leader in the fixed income business. let's move over to equities, a place where jp morgan -- where jp morgan has been nipping at morgan stanley's heels. you are seeing jp morgan pull in more equities revenue than analysts even expected at goldman sachs and morgan stanley. again, it sets the bar very high for the other two large investment thanks. lisa: what about -- investment banks. lisa: what about the real economy? consumers still are not borrowing. how big a concern is this? sonali: a huge concern. the card business is what we have been looking out for, but average loans are up 5%. on the headline, that is a great number compared to last quarter, where you saw it flat. but it is coming from the commercial businesses rather than auto loans, home loans, and cards. so people are waiting for 2020 to for that to really turn around. -- for 2022 for that to turn around. but how much d

caroline: sonali basak, thank you for your time. we continue to see celebrities flocking to #cryptotwitter to announce their participation in nfts, as we were just discussing with jill. the latest, none other than reese witherspoon, who caught my attention. she tweeted about her first purchase about and fts, adding she would like to know about the women creating nonfungible tokens. jill gunter should get over to her. meanwhile facebook shares , continue to fall as the whistleblower, frances haugen, gets ready to meet with u.k. and e.u. lawmakers. we will talk about that next. this is bloomberg. ♪ caroline: just one week after testifying to congress, facebook whistleblower frances haugen has just announced that she will now meet with a facebook oversight board, tweeting she is looking forward to sharing the truth with them. this is in addition with meeting yea and u.k. lawmakers. our correspondent has been all over the ongoing fallout that from what initially was focused upon perhaps facebook understanding the ramifications of their

this is a great story by sonali basak.nce are using online poker to help their careers. there is a poker power. it is a dozen courses and created by a long time trader. it is teaching women how to take risks, how to negotiate, how to play poker and be better at your finance job. i love this story. i think it is great and it should come to bloomberg. guy: that is true. i'm always up for a game of poker. i rarely get invited. what i think is interesting is there's a lot of research. sonali makes the point that women are just as good as negotiating, but the reaction to their negotiating is different, and that is where the problem lies. alix: also the risk-taking scenarios -- not that women do not take risks, but learning how to take them in a different way, to your point the perception may be different, that would be huge. that would be a lot of fun. what is your poker game of choice? guy: "texas hold 'em". i used to play with my brothers friends were all good at math and playing with them is a different ballgame. alix: but w

will note due bring you to day two of bloomberg invest global, where sonali basak is joined by the carlyle. >> it is about using the virtual environment the right way. if you do this the right way, you can adapt and you can be better at what you do. that is what we are pushing for. sonali: speaking of adapting, we are at such a tense point in markets today. there are risks mounting by the day when it comes from washington to china. on top of your list of worries, what concerns you most about the trajectory of the investment environment? >> the investment environment no doubt is incredibly complicated right now, and navigating it is going to be a challenge. but we have been in this for many decades, and we have a long-term perspective. i think it is important to understand that where there is volatility, where there are competitions and complexities, there is also huge opportunity. if there's one thing i have learned with respect to the challenges over the past two years, carlyle is able to bid incredible well because of our platform. if you have a global perspective , deep industry experti