explain to mortals how big these banks are in unique business of jp morgan. : you are absolutely right. our banks, the top three or even four if you include citigroup, jp morgan, bank of america, are gigantic banks and compared to the days were we had money center banks like manufacturer head over -- chase, manhattan, look at the size and they were the big base in the 1980's. these banks are multiple sizes of that. when you put out the trillions -- we sit there around billions like it was nothing down. these companies are very arched. in jp morgan and bank of america, extremely well-managed. tom: how do you do a run rate on jp morgan? seven years out -- how do you model it out? as a mid-single digit performer? high single digit? can jamie dimon and his follower, can they do a true double digit performance? gerard: it is a great question because when you think about the size of our biggest banks, banks are products of the economy, our biggest banks grow at the nominal rate of gdp's of you think united states as -- if you think u.s. has real gdp growth of a perc

if you're going to be in a bank, no doubt it's jp morgan. that's the best of class, best of breed, best management with guy my dimon by -- with jamie dimon, i would forget about bank of america and citigroup. if you're going to own a bank, it would be jp morgan. maria: dennis, we've got inflation data as well which certainly set the tone for markets, the june cpi and ppi coming in cooler than expected, clearly inflation is coming down. but futures market is still pricing in a 95% chance that the federal reserve will raise interest rates by 25 basis points at the next policy meeting. do you think the fed is almost done or does this data this week change anything? >> the data this week changes nothing. i'd say there's 105% chance that we're going to get a 25 basis point increase in the overnight fed funds rate at the july meeting. the question shall be what will happen at the september meeting and i have my doubts as to whether they'll move another 25 basis points down. there's conjecture that they shall. i have my doubts. it will be a long per

you hear caution at all the banks, including jp morgan, where they are mentioning to quarter records cket early for these banks that are of the few that are up on the year in the kbw inc. index. >> hopefully, you get to enjoy the weekend before the banking numbers. later today, the banking conversation continues. the wells fargo cfo will be joining the bloomberg markets team at 2:00 p.m. new york time. hollywood goes dark as actors join writers in a tandem strike, not seen since 1960. we will have the details, next. this is bloomberg. ♪ [laughter] [applause] >> sag-aftra -- i am completely fascinated by this story, one i will be watching in the next few weeks because it could effectively shut down the industry in new york, across the u.s. and california. kriti gupta is joining us for now. what led to this tipping moment? >> this has been in the works for a while. a lot of actors have openly supported the writers guild. they said, we understand where they are question -- they are coming from. this is a question of pay, a minimum amount of work you can charge a proper fifa for. things l

barrels per day by the equation of three and six tenths of the world supply, on the other hand bank jp morgan analysts announced in a note that although the production the gross domestic product has decreased in recent weeks, but the american economy and the global economy are not in imminent danger of falling into recession . the language is simpler than every ten people who want to work, almost one person could not find a job for himself. it also shows global statistics of more than 500 workers needed in advanced countries and job searches . it identifies and introduces institutions and centers that, if the basic trend take job seekers and of course, if they benefit from specialized knowledge and technologies , they can be very effective for the development of the economy and production. we are a knowledge-based company, we work in the field of information and communication technology. iran talent was created 20 years ago as an online job search to attract specialists , managers and engine experts, the goal is to attract specialists who are outside of iran and oil and gas projects that were

and of course, jp morgan is not just a bank. it's also in a geo political power broker and that would eventually come into the come into account the as part of the discussion. well, there's been a lot of focus on the lawyers of the.

and of course, jp morgan is not just a bank, it's also an, a geo political power broker. and that would eventually come into the come into account the as part of the discussion. well, there's been a lot of focus on the lawyers of these victims. they're going to get a large chunk of this, but the same time, it's not only about the money, it's also about the information that we actually probably had a chance of probably getting the most information yet. should these lawyers, if they were about more than just the money to that's hard to think wires, not just about the money. are you getting me here? what should they have held out? they should they should, you know, i know i went full discovery. i want those little black books, i want to know you're quiet rogers, who put money in who put money out. well, you know, from the perspective of the lawyers, they are sworn to represent their bid that their clients and get them the best possible deal. they are and if i'm representing the client and there's $200290000000.00 sitting around who's going to say no, just past that $29000000

and of course, jp morgan is not just a bank, it's also an, a geo political power broker. and that would have eventually come into the come into account the as part of the discussion. well, there's been a lot of focus on the lawyers of these victims. they're going to get a large chunk of this. but the same time, it's not only about the money, it's also about the information that we actually probably had a chance of probably getting the most information yet. said these lawyers if they were about more than just the money to that's hard to think wires, not just about the money. are you kidding me? or what should they have held out? they said they did, you know, i know i went full discovery. i want those little black books, i want to know you're quiet rogers, who put money in who put money out. well, you know, from the perspective of the lawyers, they are sworn to represent their being that to their clients and get them the best possible deal they are. and if i'm representing the client and there's $200290000000.00 sitting around who's going to say no, just half that $29000000

we have more related to banking. jp morgan.8 billion worth of mortgages to facilitate bank of california's purchase of pac west. sources say jp morgan has entered into an agreement to buy the single-family residential loans at a discount. it is not immediately clear if it plans to keep the loans or sell them to other investors. blackrock is making another attempt to enter india's asset management industry this time with the help of a billionaire conglomerate. a deal with the financial services unit will form geo blackrock. the two companies are targeting initial investments of $115 million each. blackrock exited a previous venture in 2018. evergrande new energy vehicle group had a loss for 2021 and 2022. warning of its ability to continue as a growing concern. the ev unit of evergrande reported financial results for the first time in two years. the company says it is negotiating with banks and other parties about renewing existing borrowings and corporate bonds. a striata and new zealand are warning that china's new policing a

one driver today for lucian's, it is a mixed picture but if you look at the banks of the dave jp morganer up .7%. wells fargo up .2% higher. the net income revenue higher. and citigroup lowered down 1.8%. despite all of the banks beating estimates. investors are not as happy as they had been digging into the results. on the year of the stocks are underperforming. i do not think it will hold true anymore. it actually is. what we look at in purple, the kbw bank index, the regional banks in there on the year at 17%. and the xls is slightly higher 1.3%. jp morgan probably helping out there. the s&p 500 up nearly 18%. 14%. and -- the nasdaq 100 up 14%. and he asked the question we you see this rotation into the bank? it is hard to say. finally, if we go cross asset, look at the bloomberg dollar index. we have a bid after a five-day slide. we will see if it holds any importance. the two year yield helping the dire -- dollar go higher. the vix at 20. that of course is the nasdaq 100 mix and it is a good .6 point -- good six points higher. some investors are concerned about what could be ahead

when you look at bank of america the three big banks, jp morgan, citigroup, and wells fargo have in recent morgan stanley the expectation stuck on friday. for the other banks it is negative territory for the stock because people are worried about this. and you get to goldman sachs and there is a worry they are. the expectation is about $2 million. write-downs tied to the green consumer business and commercial real estate. and then you have regional banks are out the rest of the week. u.s., li, zion, one of the worst performers in the kbw bank index, zions has a huge commercial real index. -- real estate index. wednesday i think is even more interesting than tomorrow. thursday interesting even more with capital one and the credit card companies. you get such a robust amount of data this week on the credit quality and what it looks like across the united states. guy: the banks so far are always doing too well. the market knows there are bad things coming and at some point those bad things will arrive. will it be better if they arrive earlier or later? sonali: earlier. always earlier. the dif

haidi: what are we hearing from some of the most prominent banks , jp morgan and morgan stanley. >> it is incredibly challenge to predict where the stock market will go. as many people scale back the recession calls, a lot of people say -- who said stocks would be going nowhere, have been caught flat footed. two of the big bear on wall street are the ones who have been scrutinized for missing out on the rally. marco came out today and send none of our data has changed. we still expect another selloff and renewed pressure on u.s. stocks. as consumer savings dwindle, as geopolitical tensions pressure stocks. you have mike wilson who is maintaining his bearish calls, saying he is worried about corporate profits, however he did admit for the first time that they were wrong. clients are asking them why they have not enjoyed the games of the stock market this year. there is a question of whether or not this really has staying power. shery: there is a reason we have been worried about a potential recession in the united states, especially when you look at the signals from the yield curve. eco

banks. jp morgan is acquiring more banks. the banks are getting bigger. >> the banks are getting bigger. but the ftc is run by a biden appoint eye, lydia kahn, who made her mission to keep big companies from getting bigger and that's what this all about. now, to be clear, the u.k. strangely has still actually not signed off on this. so even though the eu has said yes, now effectively the u.s. has said yes, japan has said yes which was a big deal. it would be a competitor to nintendo and microsoft is part of the deal, had to agree to put call of duty on the nintendo owned by sony platform. they agreed to do that. the u.k. is holding it up which is sort of curious. it's just the u.k. maria: do you want to buy any of these stocks as a result of this? does this change anything for you. i know you've been bullish on microsoft. >> it doesn't change anything. i already own microsoft. i'm quite happy to keep owning microsoft for any number of reasons. they took basically the guts of your computer, put it on the cloud and they've become the guts of the cloud and now they've gone the a.i. thing. r

jp morgan to shine. i want to show you what a banking analyst at wells fargo had to say of jp morgan. might be the best court of all time. he wrote jp morgan is like the lebron james of banking. they are good not only at defense, they are good at offense. this quarter showed how they are able to put a lot of points on the board, while maintaining balance sheet strength. that is the most stretched best of paul manafort you will ever get about jp morgan. which goes to show the excitement you will get. i mentioned other earnings in europe. this morning, we had novartis hitting the tape 25 minutes ago. they are planning to buy back up to $15 billion worth of shares. they have upgraded their outlook. and they will be preparing to spin off their sandoz generics unit. they think that will happen later this year. the court unanimously said they want to spin off sandoz. they now think their profit excluding some items will likely grow by low double digits this year. an upgrade and a buyback of $15 billion. we got more swedish bank earnings. seb also hit the tape about 25 minutes ago. the story

david: i think it will be the regional banks, the large banks and particularly jp morgan and bank of wells and american express and credit card banks have been popular hiding places for institutional investors and the opportunity exists in the small and regional bank group. there is probably a 30% to 40% discount for the regional banks listen to the big guys. to the extent that we can get comfort -- over the next two or three quarters and clarity with respect to revelation and credit, that is the driver for the stocks to go materially higher of current prices -- from current prices. guy: thank you for joining. david george, baird senior bank analyst on what is happening with the numbers. how big a difference will be see emerging at the stop lending scenario comes through? people are looking for paper -- places for -- to hide but we wonder outside of tech, whether this rally broadens. kailey: you are seeing the rally taking shape. bank of america up 4.3% and morgan stanley up four point 6% and these were stocks gliding in the broader market for that cash of taking place and maybe pain

we are sitting in a story where jp morgan, morgan stanley, bank of america, citigroup, not only big lendingesses but massive wealth and investment management businesses, silicon valley bank alliance, first republic alliance, it is a war for those clients. jp morgan just bought first republic, they hired a bunch of silicon valley bankers so is bank of america then still patching the share falling out of the market? jonathan: let's plan out the rest of the morning. you need more time to go through the release. morgan stanley and the next hour, conversation with james goldman later. what is the focus this morning? sonali: for morgan stanley it is about the numbers but more about the succession plan. he said a couple months ago he would be stepping down as ceo next year but they do not have a new ceo yet named. what is going to be the future of morgan stanley? we were talking about the requirements, they go after morgan stanley, the fee-based businesses and trading businesses that have the benefit of lighter regulation the last 10 years. jonathan: james, morgan stanley in conversation with cine

everything you need to be a full-fledged bank and they don't need wrenches. think about how much money jp morganank of america and all these banks are spending interest. they're doing the same with less than this. jon: thanks very much for your analysis. we're looking at the $102 billion in treasury after they boost their quarterly refunding of long-term treasuries, 202 billion dollars from 96 billion thousand according to the consensus among dealers. liz mccormick joins us now with more details. we've been waiting for this moment with lots of supply and the demand picture, given eggs the not kind of appetite or foreign investors, what we know about matching this money? >> exactly, we've been talking about this for a while. treasuries kept things down for a while. now with the trajectory of the deficit and the fed balance sheet, they will start on wednesday when they renounce the funding issues come to bunk them up to 102,000. it's at a time when many people say the kind of structural briars of dish buyers of treasuries like banks not buying and foreign accounts haven't been buying because it be

and of course, jp morgan is not just a bank. it's also in a geo political power broker, and that would eventually come into the come into account the as part of the discussion. well, there's been a lot of focus on the lawyers of these victims. they're going to get a large chunk of this. but the same time, it's not only about the money, it's also about the information that we actually probably had a chance of probably getting the most information yet. should these lawyers, if they were about more than just the money to, that's hard to think. wires, not just about the money. are you kidding me? or what should they have held out? they just said they did. you know, i know i went full discovery. i want those little black books. i want to know your quiet rogers, who put money in who put money out. well, you know, from the perspective of the lawyers, they are sworn to represent their being that to their clients and get them the best possible deal they are. and if i'm representing the client and there's 2cw2c9xw dollars sitting around w

banks. we have wells fargo, we have jp morgan, we have a number of the large banks reporting.o be an important bellwether for the market going forward. you know, we have a lot of pressure on the banks. there's a lot of concern about credit worthiness in this country. we can talk a lot about commercial real estate. that's obviously the tip of the iceberg but we have corporate debt as well. and i think any time have you a situation where someone has been borrowing at a certain rate and going forward they're refinancing at something like double the rate that's going to be problematic. commercial real estate is a problem because usage is down in these buildings. if you look at swipe card day taxer people going into an established trophy building it may be 40 or 50% of the occupancy. so guess what? if i'm a lessee in that building i'm probably going to take less space going forward when my lease rolls over. this bill a long-term problem for commercial real estate. i think it's true in the corporate world too. we've become very used to very low interest rates so basically our cost o

let's talk about the bank of england, jp morgan sees rates maybe going as high as 7% in the u.k., whatbout that? altaf: unfortunately the bank of england is in the toughest spot of any central bank. they have a tight labor market because of specific issues, for example, brexit. they have inflation which is higher and core inflation picking up a lot more than other regions around the world. the bank of england i do think is in a different place to the fed and the ecb, and is probably more justified in having to increase rates to get that inflation problem under control given how tight the labor market is. but we don't think it is a similar position for the fed in particular, and the ecb being somewhere in the middle. lizzy: despite gilt yields surpassing the heights of the truss era, you have seen a strong cable rate, does that show the u.k. can come out of all of this intact? altaf: it can definitely weathered the storm better than nine months ago. what happened nine months ago was very unusual. it was like an emerging market economy. yields went up as the currency weekend. now we have

bank of america is an outlier but jp morgan defined as well. ere will be fluctuations from one bank to another in terms of trade and activity -- trading activity and what bets they took. there will be variation from bank to bank. even overall and a quarter you will see some banks go up and that is what think america was. it is not the largest bank so there is not really a bellwether for the market in morgan stanley and workman -- goldman sachs are better indicators overall. dani: bank of america has been underperforming this year and there is a valuation gap opening up given the numbers we have seen so far. should the gap start to close? octavio: i think it should and bank of america's results were very solid. i think the overall surprise with this banking sector is how well their net interest margins have held up in the amount of money they are making on bread and butter lending business. i thought we would start to see deposits shifting out the banks looking for higher returns and basically 0% checking account. jp morgan and bank of america ha

signs of bottoming and pushing you towards an inflationary cyclical industrial trades and banks like jp morgand that's what we'd trade in the third quarter. not these big tech names. they had their run. liz: favorite fame for this coming quarter? scott? >> positioning options in boeing and i by boeing can get a deal from china and once china gets their stimulus, i think it could happen and i think boeing has a nice channel and positioning in options wait forking a catalyst in news so i think that's a spot. i'm also heavily in bank of america from a few days ago. i don't think a barn burner trade but percentage wise, it's pretty safe and the banks do outperform and then i'm playing tech and playing tech with options because it's had a huge move like playing tesla for earnings but i'm in a call spread just because we just made over 100 some odd points there. maybe there's one more move but don't want to get caught with a leg sweep. liz: okay, ahead of earnings after the bell. check tesla is flat and slightly positive and bouncing around the flat line. great to have you both. >> good to see you.

and also some exemptions were gained with the, with the us and the you even the banking deal with jp morgan to get my any going back to russia. but the problem is many countries just don't want many companies don't want to do deals with russia this time for well, you all hearing right now from the ukrainians. james, what is then the future of the grand deal, or should i perhaps ask, is that a future for the grand deal? is there an alternative, if not well, certainly the ukrainians are hoping that perhaps there is and a to meet you. collab of the ukrainian foreign minister was here earlier in the week. we know that he was talking to you and so it could be general and others about alternatives and possibilities. when i spoke to the training on boss that who was now speaking of the security council before the security council meeting, i also have about reports that maybe you crime is going to try a route very close to the trade show. what now that they have snake island back at that disputed island. russia took early on in the war and a route going to remain here, which was a nato country. tha

bank regulation. earnings season is kicking off friday with jp morgan, citibank and wells fargo. rough next week, bank of america, morgan stanley and goldman sachs on july 19. tom: what are we looking for there? they are all enemies and i get that but we look at the dynamics of jp morgan and their troubles on the balance sheet but the basic tone i get is wall street, , its a struggle. to say the least. i wonder what we will hear. lisa: i am looking at the idea that suddenly michael barr wants to raise the capital arm is on big banks and said nothing about the supervision function of the federal reserve and how to bolster that and said nothing about the regional banks which were the problem in the previous iteration. how do we get this to translate into a very delicate political dance? jp dimon has not been talking but you can imagine behind the scenes, he is probably saying this will not do anything. tom: what are we trying to accomplish here? we will get a brief on this. myra rodriguez joins us now. a real expert on basel three, dodd-frank and the rest. i am lost. we had basel th

bank of america and j.p. morgan standing joint bank of -- bank of america and morgan stanley joint jp morgan and citi on beating estimates. bank of america with the surprised beat in fixed income and equity trading. in fact, they had the best first half sales and trading revenue in more than a decade, zero days of trading losses in the quarter. morgan stanley it executives pointed to an improved outlook. the ceo james gorman says the end of the second quarter was encouraging. look what it did to the stock, rising the most in six months. also, james gorman told bloomberg that the fed's new capital requirements that have been revamped to mirror basel iii do not concern him because they are years away. let's listen. >> based upon vice chair's speech, they are going ahead with a holistic basil review that will be proposed in a couple of weeks and i expect it to be pretty challenging for the banking system at first blush. there will be a lot of discussion. my guess is none of this gets implemented before the end of 2026. several years to adjust. su: 2026. wow. he also said the kinds of things that wall street wanted

big banks leading the way. we have jp morganthers starting here we will be watching for net income expectations and see what the fed hikes mean for the biggest banks in the country. bank of america golden state -- goldman sachs, how they are faring. from new york, that does it for us. this was "bloomberg real yield." this is bloomberg. ♪ jon: welcome to "bloomberg markets." matt: looking at gains pretty decent after a miss on the jobs report. he would have expected stocks to rally a little more but we are up about two thirds of 1%. you also see yields hanging where they were over four on the 10 year and over five and back down a little bit, hanging around that level.

i put in morgan stanley is rivals, jp morgan, goldman sachs, wells fargo, bank of america, citi and morgan stanley has outperformed all of them over a five-year period. they are doing much better in the long run than any other banks so far over the last five years. i thought that was very interesting that they continue to outperform. amber: it absolutely is. they had a message five years ago going back focusing on wealth management and they delivered her this is an interesting set up for goldman sachs because have gotten disparate views of what the capital markets look like. at morgan stanley and bank of america offering very different pictures. it will be interesting what this means for goldman come tomorrow. another stock we are watching is shares of microsoft, a record high after unveiling new pricing strategy for their ai offerings. they are also nearing the finish line when it comes to the big activision deal. or on what this means for the stock when we come back -- more on what that means for the stock when we come back. this is bloomberg. ♪ the first time you connected your godaddy

based on what you have heard from jp morgan, bank of america, morgan stanley, goldman, where do these rank this quarter? >> jp morgan was the unequivocal low out in the room. they came in with the highest r.o.e., as well as a massive profit jump, even without first republic which would've been a huge jump in the income where you see the big investment banks. it takes a little bit of a dip. the goldman decline in profit is significant, and the expense bases are high for everyone of these banks. all for different reasons. so, can the comeback in investment banking, can the rise in income, can that save wall street this year is my question. >> thank you. stocks are negative by 0.7%. say will be back a little later with some of those earnings calls with goldman sachs and david solomon. slightly negative. let's get to the broader market with equities. we can take a look at the s&p 500, the nasdaq, and the russell. there we go. features are unchanged on the s&p, on the nasdaq. we are positive by 0.14%. slightly firm with the year today. absently flying past 40% on the index. as mentioned, t

suppose the market is bit mixed and nervousness ahead of that training the like of citi bank, wells fargo, jp morgan well expected to put out numbers. very important to note we're anticipating to get around an earnings drop off of around 6.4% revenue, perhaps a drop off as well, so not necessarily the best second quarter, but those banks would have done well to have taken in some proper net interest income because interest rates continue to go up, of course, so that revenue is certainly higher, but net loan losses will be the interesting one. have more consumers defaulted on their loans than before? that will be the one to look out for. >> that's going to be big, and also whole sale inflation continued its yearlong slow down last month. once again it puts us in a position of how that could impact the fed's decision on interest rates. >> yeah, that is certainly the big question mark. it's slowed down so much it's the lowest it has been or slowed down to the lowest point in three years, actually. so that 0.1% figure does point towards that steep slow down that everybody had been speaking about includi

last few years you have seen jp morgan and the return on equity that is catapulting over the rest of the pack in such a significant way, and that is because when investment bankingell, the credit-card business is doing well. what is interesting, too, his last week we saw jp morgan's price-to-book ratio slip below that of morgan stanley. jamie dimon, historic ceo. we know management changes at morgan stanley, and the consistency of leadership in watching these people become a leader over those periods of time makes it easier to stomach, especially when times are rough like they are now. dani: thank you so much. that is bloomberg's sonali basak. later today sonali will have an exclusive interview with a man who oversees trading and investment banking at citigroup. that will be 4:30 p.m. in new york. stay with bloomberg for that one. plenty to ask him about. it is just running up to the european close, a little over 30 minutes to go until we get there. i want to get a check on markets because we are continuing to react to the week pmi data. in germany, manufacturing some 40 for the first time since the pandemic. the last time we got that reading was the financial c

bank supervision. this idea of going after jamie dimon. you mentioned jp morgan as we went after earnings. after brian moynihan and that will solve the banking crisis? it is baloney. sorry. i am not focus. i am sending out tweets on my red sox special. at 9:30. jonathan: so you are done with threats? tom: i am and i learned how to delete an instagram account. they make it so hard to do, it is an conspiracy. jonathan: so you were in conversation with the dogs last night? [laughter] equities right now on the s&p positive 0.2%. yields lower. down two basis on the 10-year yield at 3.9483. lisa a: we are expecting the cpi report at 8:30 a.m. eastern. will it be enough? will it change the conversation when fed officials want to remain as hawkish as half full? the bank of canada has been a leader so far this year. it was one of the worst with a hawkish pause earlier -- one of the first with a hawkish pause this year. they are expected to race again. it is expected to be the final hike. at 10:00 a.m., curious to know what their thresholds is about achieving victory. which the british evidently do

banks. they still haven't gotten balance sheets straightened out. to the point about jp morgan, they're so big it would require waivers for them to acquire any more banks or they'll continue to become more dominant than they are right now. so i think that that is going to be something to really watch in this earnings season. the banks, the regional banks are like c students. if they come in with a c plus and they're doing a little better than what people expect there would be some relief but i'm not expecting anything other than very, very mixed results from the banks. cheryl: low bar, if you will. certainly. yeah. tim, thank you so much for being here. it's good to see you. thanks for the commentary. we'll see how the rest of the financials do and of course tesla is coming up this week as well. mike lee, stay with me. you're with me all morning. we have a lot more coming up on the show. president trump, the former president, he gives maria his take on bachs. so joe thinks it's working. i'm sure that trump disagreed. find out in that clip that we're going to be playing from mar

there is still plenty of uncertainties for the banking sector but when i look at your target prices for names like jp morgannd wells fargo, it looks like you see a little potential upside, maybe not too much but you are not thinking there is no upside for these names over the next 12 months. >> we are neutral for the group overall. we would expect some outperformance out of wells fargo going forward but what has happened recently as outperformance has been stability. some of these names have traded in a relatively narrow range which have really been outperforming b thefx overall and respect that to continue as we work through the quarter. the numbers for jp morgan and wells fargo were above my expectations and the guide was supportive so that will help as well. matt: they say citigroup is still rightsizing the investment bank. i'm sure a lot of managers across the street are looking at whose doing well in news not. what will we see in terms of headcount this year? >> going into next week with morgan stanley and goldman sachs, we will see some severance costs there as well. i think we are going to see some c

done everything it time to try and get exemptions from the european union from the us banking deals with jp morgan, for example, for russian exports. and they haven't been able to get everything russia wants because these are commercial entities and there are some commercial come companies that do not want to do business with russia. strong woods condemning russia today in the security council you had, they had the political affairs, chief of the u. n. rose me to call a, she went all the comments to say the latest developments. a pos of rushes senseless war against its neighbors with consequences around the world. we just heard from the us ambassador to the united nations, linda thomas greenfield. she said that russia was weaponized in food. she said people are hungry and people will die. well, that needs on it. and my 2nd question, james, because the u. n. has been very vocal about how all of this will affect global freed security. what sort of plans is it making? well it's, it's doing what it can, it knows the figures involved, and it knows that taking the grain from ukraine over the overland ro

bank. they are obviously not jp morgan but it is a tremendously large bank within a norma's lone booking andut the current state of the environment the ceo of pnc cut himself off and said we are having a soft landing right now, the economy has been quite strong. from my standpoint i think that will translate into actual operating results. that hasn't fully materialized of yet but i have been optimistic this will be a bigger than expected earnings season. tom: for the goalie crew, where is the greatest misjudgment? revenue? down the line? in -- the input costs debate? what is the thing the bloom crew is getting the most wrong? dan: gloom crew is a small group at this point. price action has arrived. there is concern on the top line . i mean there is a good relationship between nominal gdp and nominal earnings in the s&p 500 and as it comes down, the topline growth has slowed and is continuing to slow. i don't mean to suggest that all is well but what i'm operating on is it's more of a relative argument, more so than the negative arguments of 2022 that fully carried over into 23 and don't appe

jp morgan is making consistent new 52-week highs. bank america has been a big laggard, but it's had a big run here to be frank, i had a small put position into earnings season in just the banks and the xl, thinking if there were any hiccups there, there would be a space that people are probably keeping on a very short leaf but the fact that they were good results and they kept on going, it's kind of good to see that if you're in this broadening out camp but i think to guy's point, it's also value right now where it's probably hard to find good value in other areas and that might be one of the things why people are picking at energy here too after a difficult first six months of the year >> well, coming up, netflix with its worst day since december, but the stock still up 100% since last jy.ul carter worth set to give us his review of the charts, when "fast money" returns >>> welcome back to "fast money. netflix under pressure on the back of its q2 reports shares dropping over 8% today as wall street looks for clarity on how the streaming

banks. to lisa's brief this is not jp morgan. these guys have other headaches. some banks we have never heard of. it is like what we do march madness and everyone talks about gonzaga. i never heard of them. if you went to gonzaga, i am sorry. tom: good morning, washington state. [laughter] jonathan: good morning. you are one of those individuals looking for this market to broaden out. can you tell me about the framework? michael: people have been too negative. i think they talk themselves into looking for a recession and a lot of the cyclical sectors have not participated in this rally. there is a lot of the s&p still in the cyclical portion. where it was last december. if we get some sign from management that not only have earnings held up but they took their guidance down last quarter and feel better about things, i think that portion of the market can play catch up. jonathan: said through banks or through energy? what is it? michael: i do not think the banks will surprise people. i think we will see the big banks will of benefited from the small banks losing d

we're going to dig into the banks as they saw massive demand . morgan stanley, jporgan, and the wells fargo sale all saw their order easily outpace sales and investors also piled into the leverage loan and high-yield bond market. monday alone saw eight new loan deals and for junk bond sales, the week totaling more than $3 billion in high-yield. some say the current environment presents a buying opportunity. >> we think bonds are back so to speak. yields now across the spectrum into corporate's emerging-market to and other parts of fixed income where the total return you will see or potential is a lot higher than it has been for most of the past decade. katie: joining us now i am pleased to say we have marino connor of wells fargo and zach grifitz. zach, between bearish and pound the table bullish, where you fall on this corporate credit market? >> i would say we are bullish and really that is adjusted a bit. recently i think the move in high-yield has gone a little too far so we did recently downgrade high-yield to market perform from outperform and that is not to

bank earnings. we will get more on this peak. but we did get jp morgan last week.heir revenue sort to $1.3 billion in the second quarter. all of this as jp morgan becomes ever so much bigger. they had higher rates and they took over first republic bank. the beam is. quarterly interest in income comes in. this was all forecasts -- the u.s. economy continues to be resilient. they cautioned on the outlook and recessionary risks. this is all somewhat arrested in two. [unusable audio clip] >> also here in europe, they kicked off with nordea reporting better-than-expected profits in the second quarter supported by tailwinds from these interest rates but the biggest lender in the nordic region also raised its full-year profitability guidance with net interest income rising 40% on this. let's get to chris young said in sock,. let's get to the numbers. over the main takeaways from nordea? question morning. it will be a jampacked earnings week. the report was overall better-than-expected. this was in line with expectations. what can be said is that the full-year forecast for

preempted some of the critical aspects of it so the banking industry is restructuring but it's not going to be a crisis. cheryl: you've got jamie dimon and jp morgan ready to swoop in and save the day if you're a smaller regional bank. there's a lot of commentary out there that we are going to see small banks, there's going to be a failure or two, maybe more but we don't know the names yet. so that's t big question, i thi. brad, thank you for being here. >> thank you, cheryl. cheryl: take a look at the morning mover. amc entertainment, the stock is up in the premarket more than 50 -- almost 52% higher. shares of the movie theater chain soaring after filing a revised stock conversion proposal as the judge blocked the plan to convert a shares into common stock. amc's ceo releasing a statement on twitter over the weekend, saying quote, amc hopes to implement the plan as soon as possible if the court agrees. stock is down 53% over the last year but, again, as you can see, there's still some traders that are hanging onthat one. coming up, president biden ignoring the important questions again and he's questioned about chinese hackers hitting our govern

sam, the banks are about to report earnings. jp morgan was upgraded by jeffries, the stock is doing well going into its earnings release but we've got job cuts continuing, microsoft confirming more job cuts are on the way in addition to the 10,000 layoffs announced in january. salespeople and customer success representatives are among those getting laid off, sam. what's your take on the macro story with all of these job cuts ahead of the earnings period? i want to get your expectations for earnings for the second quarter which will begin in earnest on thursday and friday of this week. >> sure, well, good morning, maria. looks as if the earnings are expected to come down 8.6% year on year and that's actually a little bit worse than the 8.3% anticipated at the end of june. so you could look upon this and say uh oh things are getting really bad. we're looking at three sectors expected to post year on year increases, that being communication service, consumer discretionary and industrials. but actually this is expected to be the trough quarte

of talk in the regional bank space and more failures to come and we don't know who they'll be but that they're going to happen and waiting if the wings, jamie dimon of jp morgan ready to buy things up and all intents and purposes the way these large four big banks are sitting and waiting for opportunity that's going to come their way. >> yeah, i think on balance the banks are in great shape and you might get twinge for the earnings and scott pointed out it's all about the guidance and the stock market is a forward looking indicator but on balance, the economy continues to bum along. weave had some reasonably benign inflation numbers but certainly is helping the broader market but i don't thissen think we're out of the woods yet and on the one hand there's a economy, that i think it's good that they refuse to roll over. you want to continue to spend money and a fed in the middle trying to control everything and the only tool they have in there in their tool box is raising interest rates so i for one think interest rates are going to work their way higher and for longer than anybody thinks but for the moment, the good news as far as stock markets are concerned

banks will adapt and they will be embarrassed at their profits. they will eye'd how much money they are making. jonathan: it's a lot about credit quality going through jp morgany, low losses, loan-loss reserves. most people have been guiding to low expectations around that. across a number of the banks, particularly on the trading side of the business. the bar has been set low into financials tomorrow and we will see how they deliver. tom: i will just go to the real yield and stunning 1.0% on the 10-year. five-year real yield way out over the last number of days. fear of a rising inflation, tenure yield 1.0 back to 1.55, disinflation. jonathan: and that is the bond market. equities gearing up for a fourth consecutive day of gains on s&p 500, equities up by 0.4% and the fx market, six days of this now, six days of euro strength and dollar weakness. euro-dollar, 1.117 nine. the currency positive by almost 5%. tom: the hallmark of the show has been keeping score, week take careful care with those that get it wrong. we pay attention to those they get it right. no surprise to anyone over the decades but the longer timeframe, longer perspective, the gentleman from

shery: we are talking about these wall street banks now cutting the forecast for chinese growth. jp morgand citigroup among those downgrading their projections to 5%. citigroup saying beijing's official target set in march around 5% is now at risk. u.s. treasury secretary janet yellen telling us exclusively that china slowing growth could have ripple effects across the global economy. >> maybe countries depend on strong chinese growth to promote growth in their own economies. particularly countries in asia and slow growth in china. it can have negative spillover. for the united states growth is slowed but our labor market continues to be quite strong. i don't expect a recession. >> joining us from singapore, the ceo of global fixed income at blackrock. you are of the opinion the u.s. does not have to fall into recession. how does the worse than expected slowdown in china play? in previous economic cycles china has made the cyclical force of growth. >> thank you for having me on. when you try and assess your calculus for global growth, china throws a real curveball into your calculus. not o

jp morgan, same thing. the investment banking division did better than expected. goldman, they're driven by trading and investment banking. if that activity has bottomed which i think it has, because we know what's going to happen with interest rates, i think we know what's going to happen with interest rates, that could be very good for the stock. it's in the dow. the dow is having a magnificent run. it's starting to broaden out. maria: that's an important point. up until now it's been a cup can --couple technology stocks leadg things, involved in artificial intelligence of. the nasdaq's up 36% year-to-date. the dow is also up. where do you want t to allocate. >> the magnificent seven, make up 30% of the s&p, you're buying a tech fund at this point. maria: it's a big number. >> a huge number. you're not getting broad exposure. they trade at 40 times forward earnings. that's similar to where they were trading before they took a big hit last year. take the other 493 stocks in the s&p, they traded for a much more reasonable mull at this moment you want the broad exp

banks last week come out. goldman sachs, wells fargo, jp morgan and even citi have lifted their dividends. america has been conspicuous quiet on the topic. and, you know, we were expecting something on friday, but given that they are trying to understand these discrepancies, that's been delayed and the stress test, this is this is not the end of the regulatory scrutiny haidi there is more stress to come for the banks. that's exactly right. so we've got the basel three updates to come later this year. and also in in the wake of those regional lender collapses, you know, we're expected greater scrutiny from the fed as well and they will probably step up their efforts in how they supervise banks. bloomberg finance reporter novella ahmed there with the latest. and we do have plenty more to come here on daybreak. asia, as we count down to this very contested decision of course, really markets expecting this one could go either way. most of the economists that we've spoken to calling for another hike today, even as those recession risks continue to build. bloomberg intelligence is looking at the

banks. that kicks off the second quarter earnings season as you know. we'll hear from citi, jp morganrgo. all reporting their second quarter profits on friday, mike. what are you expecting there? the banks will set the tone. >> yeah, look, i would imagine the bank earnings are going to be pretty good for the simple reason that these massive money center banks are paying their depositors nothing and they're parking a lot of that cash that's being deposited at the fed and making 5% and that's going to be the big earnings driver as it was last quarter. so beyond that, what i want to do is look through these earnings, see inside of them, okay, what is their net interest margin, what are their loan loss reserves, what do capital markets look like, what does new loan origination look like as a sign for the overall economy. you're already starting to see credit card defaults pick up to 2008 levels. okay. from there, well, this is at credit card debt being at an all-time high. over a month ago wells fargo pulled out of the used car auto lending market, almost the entire auto lending market. y

getting you ready for the trading day ahead with results expected from bank of america, morgan stanley and pnc and lockheed martin and jp retail sales and home builder confidence index we will hear from fed vice chair michael barr at 10:00 a.m. futures are seeking a bit of direction with the earnings and economic data points futures are relatively flat. we have seen the dow spike up a bit now in the pre-market o despite the russell 2000 with the biggest sector off the fresh record high, investors are seeing love with sectors around the 52-week highs. some are seeing the technical signs of slowing the trend is looking to be nearing an area of possible resistance this week expect a rally up to 4,545 to 4,575. let's bring in jenny harrington at gilman hill jenny, great to see you. >> thank you, frank. >> what do you make of that? do you see that same potential when you look at the technicals? >> that's what i was looking at here we are at the s&p. i think we have a pretty rich valuation that is totally in line with the inflation and market valuations are related. right now, we are 19 or 20 times multiple which is appropria

morgan will buy $1.8 billion worth of mortgages to facilitate the bank of california's purchase of pacwest. sources say jpn has entered into agreement to buy the single-family residential loans at a discount and it is not clear if it will keep the loans or sell them on to other investors. black rock attempting to enter india's asset management industry, this time with help of a conglomerate, reliance industries financial services unit, forming geo-black rock. the two companies are targeting initial investments of $150 million each. lack rock exited a previous joint venture in 2018 with that dsp group. the china evergrande energy group announce the loss of $11.7 billion, warning of its ability to keep going as a going concern. it reported financial results for the first time in two years on the company says it is negotiating with banks and other parties about renewing existing borrowings and corporate bonds. haidi: we will head to south korea for earnings from samsung expected to read portray more than 90% decline in quarterly net income. this is bloomberg. so... i know you and george were struggling with