we will have the latest on citigroup and morgan stanley. wall street beat is coming up.loomberg. kailey: it is time for wall street beat where we look at what is buzzing on wall street and today we are looking at management shifts at morgan stanley and job cuts at citigroup. joining us is bloomberg's sonali basak who leads our coverage of wall street. let's begin with citi. they are talking about 300 senior management roles. what we need to know? sonali: this is part of jane fraser's plan to reshape the management structure across the bank. when you think about this set of job cuts, it affects two below the management team jane fraser has built up and it is just the beginning. on one hand you have the staff, where there is a lot of anxiety because they're looking at every division across the world at every level. you also have to think about the investor response to all of this. since she announced she would be taking these actions, you've seen citigroup rally another 9%. citigroup has been seen as bloated for a long time and now not just streamlining their appearance ac

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how about citigroup citigroup opened virtually unchanged but considering big job cuts is not significant could be 10% with details coming out in january. internally calling it project bora-bora. i think that's terrible i think a pleasantness of bora-bora. the ceo frazier needs to do something big and there's a good chance these cuts are more severe than anyone anticipated cities doctoring nothing today is down this year by 6%. >> what is your input. >> i was a managing director for morgan stanley through the financial crisis they bought smith varney from citigroup. you know who ran that, jamie dinan, the ceo of j.p. morgan. j.p. morgan has a great businesses even when banking is struggling. citigroup got rid of the big businesses that's why the layoffs are there they had to cell. it's a hangover effect. >> thank you david, elon musk debuted in a.i. chabad to take on chat gpt. >> i tell you it is not pc politically correct it is informed by acts. much like elon musk he has a snarky bot that works closely with the social media site that used to be twitter has access to real-time data and a

citigroup cut 7000 positions this year. financial review has reported almost 20 private wealth employees departed friday who oversaw $3 billion last this, reports said they were set to join a rival firm. we have the more ahead. this is bloomberg. ♪ yvonne: weird macro movers, not a whole lot of conviction at when you are seeing some strength when it comes to asia. the dollar erased some gains, that's helping. brent crude is recovering. we are still talking about 20% in a bear market for brent since september highs, counting down to opec-plus, what are they going to have to do? let's bring in our energy supporter. there are rumors that they might have to extend more add to cuts. what are you hearing? >> when you look at the market and prices, there is a general view that there is weakness on fundamentals. the demand isn't there, some worrying numbers out of the u.s. , you are seeing bearish signals out of china. then look at the subplot has been strong. the north sea is up, exports out of the united states are getting strong

so, this sort of tough talk has really put a lot of anxiety in a lot of citigroup employees i've spoken to. they're on edge because they don't know if they'll lose their jobs in december or january and if their bouss will lose their job and where they fit. >> thank you for that. we're watching that very closely. >>> still to come this morning, a rare double downgrade for paramount. b of a says the rally has come to an end. >>> plus, is a wait list to buy a ferrari a reason to buy the stock? we'll talk about this more when "squawk on the street" comes back. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) you want to be able to provide your child get iphone 15 pro on us. with the tools or resources they need. with reliable i

she is no stranger to citigroup coverage.alk us through the job losses. >> city has been on this path so they basically announced the second leg of cuts. they are at the top echelons of the company, only a few levels down from jane frazier and this is not over so we are expecting to see changes, cuts, rules being announced in january and through the end of the first quarter. kriti: how does this fit into the broader plan? is this the last hurdle or more to come? jane: there in the early phases. citigroup's returns have lagged so this is one piece of the puzzle and she's got a big strategy review and new strategy for the bank that is a key piece of getting returns. where jp morgan already are. kriti: hello how said they lagged. we look at the crisis and it is depressing. despite being one of the biggest dealmakers on wall street. when it comes to jane frazier do you see pushback given there is a lot at stake? jane: she knows what is at stake and talks about how she feels the street undervalues the bank a discount hard work. sh

citigroup has confirmed a fresh round of job cuts as part of the ceos a sweeping restructuring. tell us hundreds of senior manager roles will go several top traders also departing. su keenan has been following this. what have we heard? su: according to sources it is more than 300 and at high levels. we reported in september that ceos -- the ceo kicked off a major restructuring, effort taking out two core units of the firm. now we are told by people close to the matter, senior managers to levels below the ceos level are impacted and the cuts are roughly 10% of workers at that level. this is all part of a revamp at citi that is the biggest into decades. the bank has said the cuts may continue around the globe into next year. the bank issued a statement saying these moves are designed to align our structure and strategy. it's part of the goal to boost profit that the ceo has repeatedly stated. she is seeking to streamline management and has already eliminated some structures to speed up decision-making across the bank. the stock was marginally up and then down, almost flat on the d

but clearly citigroup employees aren't calm. they're very agitated. they're very anxious as this process unwinds because it's going to result in a lot of job cuts, tyler. >> this stock hasn't gone anywhere really for a long, long time. is that what's driving this process? >> it's not just that, you know, jane fraser and three of her predecessors have struggled to really get a hold of this mess that is citigroup. it's just that even in her tenure, which has been 2 1/2 years, the stock is down 37%, which is the worst performance among her peers. expenses have climbed about 20% during that time. and that really shows you the bind that she's under. i think the story here, tyler, is she's in a fix. and for her to get out of that situation she's going to need to cut expenses. and the way to do that is by getting rid of bodies. >> and where will those bodies come from? are they executive bodies? is it across the board? is it u.s.? is it foreign? what? >> i think what's interesting here is this is one of those rare culls that's actually going to hit the senio

citigroup cut 7000 positions in the first nine months of this year. financial review has reported almost 20 private wealth employers departed from morgan stanley on friday. they reportedly oversaw some $3 billion in total assets. reports said they were set to join a rival firm. u.s. lawmakers calling on elon musk to retract his backing for antisemitic comments on x. some defended him, saying while he wasn't perfect, the world is a better place because of him. efforts in taiwan's opposition hit a snag as there is haggling over who should be their nominee. we have that next. this is bloomberg. ♪ so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier

citigroup will begin laying off its employees as part of its corporate overall plan.nounced through early next week. in september, frazier announced 5 new divisions which directly to her report, resulting in the departure of a handful of senior executives. the news is not bunch better at wells fargo where the company plans to cut 40 to 50 jobs specifically in corporate and investment bank division and cutting the number of managing directors for cost cutting efforts. tech startup and darling wicks is on the rise after barclays upgraded the software company to overweight and raised its price target from $105 to 130. it is at $95.95. the investment bank means it's a i tools will help the committee grow. this is the company that was started in the middle of the lockdowns and they've grown exponentially. the point of sale system clover, turning out to be the lucky four lever as small businesses embrace the technology. frank stepped out of his shareholder event, joining us next first on fox business with the insider information on what clover sales reveal about the state o

citigroup is in discussions for a direct lending strategy by january, the latest foothold in the boomingvate credit market. the initiative could include teaming up with one or more outside partners to provide capital for loans which citigroup would originate. private credit funds are providing a record 4.5 billion euro loan to back the buyout of adevinta. the deal led by blackstone values the norwegian firm backed by ebay at about 14 billion euros, including debt. in sweden north whole has unveiled its first sodium ion product. it does not require lithium, nickel, coble or graphite. north volt says it makes the product more cost-effective and sustainable. the first models are designed for energy storage but coming generations may deliver a higher energy density for vehicles and limit their reliance on the rare earth metals. france's top diplomat is visiting china after european probe into china's ev's are raising fears for european carmakers who are exposed to rising imports of cheaper ev's from china. france is expected to unveil support for french carmakers. the iconic carmaker, ferrar

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. >>> and citigroup set to begin a round of job cuts and overhaul of management as soon as today this are part of the bank's biggest reorganization in decades. job cuts are expected to be in the thousands and could continue into the first quarter frank. >> a lot to watch. citigroup shares up fr fractionally silvana, thank you. >>> still ahead, big moves as the economy in china is continuing to struggle we will have more details when "worldwide exchange" continues power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-winin

. >>> shares of foot locker down marginally as citigroup slaps a sell rating on the stock. weaker macro, weaker comps the catalyst behind the downgrade. down around 40%, including today's move. but off the earlier lows. one of the points the citigroup analyst made in this note, mike, is the turn-around is hard for foot locker itself to control its own destiny because 64% of its sales are exposed to nike. really a lot rests on that relationship. we know nike has been cutting dependence on -- >> it was a 60-something-dollar stock a year ago. >> people are excited about mary dillon. they got disproportionately hit by the weaker consumer spending at the lower end. they have a lot of exposure through the mall. >>> the tsa saw nearly 3 million people pass chew checkpoints after the agency already saw seven of its ten busiest days in hits history as fares fall and consumers are eager to travel, can the airlines keep up the mom momentum? >> joining us is gordon bethune and savi. good morning to you both. interested in how the stocks, 30% off their highs as a group. they trade -- de

citigroup is said to be in discussions to start a new direct lending strategy by early january and itst push for a foothold in the blooming $6 trillion private credit market. the initiative could include teaming up with one or more outside partners to provide capital for loans, which citigroup would originate. bloomberg has learned said adele's founder -- citadel's founder is set to buy a stake in the miami dolphins. the owner discussed the topic with griffin along with his stake in the miami grand prix and the hard rock stadium. no deal has been finalized. it is possible that ross could sell the stake to someone else. shares rose after revenue beat expectations for baidu. the company says its chatgpt style ernie bot has started to add to its top line. morgan stanley's copresident has been diagnosed with cancer. the 56-year-old says he plans to keep working as he begins treatment. he was one of the three candidates on the running to take over from outgoing morgan stanley ceo james gorman. that job ultimately what to ted p. plus month. shery: take a look at u.s. futures at the moment, w

china right now, the economy is weak it's very weak and they need the ges, the citigroups, they need the american companies to keep investing in china i expect that american companies will come in and start investing in 2024, which is why i think numbers, gdp growth numbers will probably rise 5% next year and outperform a lot of expectations i'm hearing from a lot of multinationals from american that they want to come back to china, they're worried about the political risk, not so much from the chinese side, but they're more worried from the biden side, they're worried that the americans are going to keep putting more sanctions so, hopefully with this meeting tomorrow, american companies will feel that they are given the go ahead by the biden regime to invest in china again >> again, if you are just joining us, you are looking live at san francisco, president xi of china has just touched down in san francisco for the ape c summit shaun, it's all about r risk/reward, and for many years, u.s. companies were willing to take the risk of the uncertainties of operating china for the reward

and rates going to look at the ones that are especially undervalued, take a look at something like citigroupf the tangible book value and long rumored reorganization that everybody has been waiting for for about two decades, finally seems to be taking hold under the new cd of relatively new jane frazier, getting momentum and i think i can weather the economic come back and i like youth. also generally like bank stocks and a lot of them are treading just under tangible book in the room to run their. >> and thundering herd and i suspect they want to move on wealth management will see evidence and okay that's what you like this would you do not like c5 ones that i don't like, or jody go near there again this people and about some of these pandemic placed stocks like zoom videos of the palatines are all about, and looking at tracking them and looking to get back in but hopefully applicable he will never see it 2020 and 2021, i think stay away people bought pellets on and i do not hear them talking about the palatines is much as they used to a zoom, really low barriers to entry productiveness so

data from citigroup showed over two years on days of 30 year bond sales the s&p index has posted a movef 1% in either direction, more than the average move over the private or -- prior decade. there is increasing influence as everyone tries to see the reaction of yields. we had a bond auction and a sign that demand did not match the auction but not a big move in yields or equities. there is a 30 year sale tomorrow keeping investors on high alert. shery: we have powell speaking, what else are we watching? >> earnings. the market reaction has been lackluster because companies are signaling waning demand. going into q4 there was a perception we would have a year end rally but that has not been the case. we will be paying attention to earnings in the coming weeks. walmart and target are bellwethers for the consumer to see how the economy holds up. shery: bloomberg's equities reporter alexandra. it is day number two of the bloomberg new economy forum in singapore and we will speak to industry leaders including global chairman of bob moretz and teal capital managing director jack. singapore's

tom: robert sockin with us from citigroup. there is some form of breaking news. this is politico within the maze of speculation. the operative word is "has." the united states has brokered a deal between israel and hamas free dozens of hostages held in gaza in exchange for a four or five day pause in fighting, according to two current u.s. officials and a former u.s. official with knowledge of the talks.certainly, the wonderful g of having bob hormats with us in a moment. lisa: we are seeing other headlines from other sources that the israeli cabinet is going to meet in the next few hours to review the progress on hostages. it feels like it is live and actually happening in a more material way than it has over the last couple of days. tom: widely rumored through the day but you wonder where this goes into the weekend. they do mentioned a four or five day pause. i am not sure what you do with that besides humanitarian aid. lisa: humanitarian aid and getting a hostages out. to be honest, all of us are looking for resolution for an end to the death, for an end to th

from his family's wealth, to working for goldman sachs and citigroup. santos committed this fraud, this election fraud, to create an entire new persona that voters and donors could support. santos' treasurer, his co-conspirator, recently pled guilty to their criminal conspiracy which included faking a six-figure len to the campaign to induce more contributions. george santos didn't just lie about attending a school on full scholarship or finishing in the top half of the class like president biden did, rather, santos went much further. to defraud voters and swindle voters out of millions, george santos lied about his entire education. not that he graduated in a certain part of his class. not that he receive a specific award. those lies are reserve for other slimy politicians and worthy of different kinds of rebuke, less than expulsion. george santos lied about attending and graduating from college. meanwhile, he never attended it. he never took one class. the fabulous he made up an entire fictional story about he was a star on the school's volleyball tea

tom: your outperform at citigroup, you have to be kidding me.it, i'm looking at $3.96. when does citigroup get their act together and give us a gerard cassidy outperform? gerard: it is a great question and it has been a very frustrating stock. she has done a very admirable job turning around this large ocean liner. it is unfortunately going to take a while. but we have to think about for a moment, you and i know this company for years, and when you think about all of the ceos they have had, she is the one to make real progress in selling businesses that are not meeting their profitability hurdles. just think about mexico. that was kind of off limits, and she has now put that up for sale. they're going to take it in an ipo or spinoff in 2025. but that is real progress. it is a value trap so far, but as she makes progress, i think it is going to finally work. but it is going to take time. tom: gerard cassidy, thank you so much for the banking. he is with rbc. this is a huge story to me. i go back to bernanke 101. the strength of the banking system

. ♪ yvonne: citigroup confirmed fresh job cuts as part of the ceos restructuring.rg has been told that hundreds of roles will go. top traders are also departing. su keenan joins us with the latest, so what are we hearing from city and sources? su: city is in a new layer of restructuring that involves hundreds of bankers. what we know from our sources, it is 300 senior managers and that includes some heads of emerging-market trading ahead of trading. those are the restructuring according to our sources. the layer affects 10% of senior management which is to levels below fraser's executive management team and we know this is part of the biggest revamp at city in two decades. but cuts will continue into next year and there will be more rounds. some have estimated that these could be into that thousands when you start getting lower into back office management and lower-level staff. the banks statement reiterates their goal. they say we believe these moves will align structure with strategy. jane fraser wants to boost profitability and wall street seems to support that

citigroup cuts 7000 positions.m and said they could not be further from the truth. they claim to jewish people held a hatred of white people and it came as advertisers hold did spending on x. bill offended elon musk saying that while he was not perfect the world is in a better place because of him. shery: taking a look at stocks we are watching in hong kong and mainland china. it big day for chinese earnings. air china is in focus after resuming flights to washington and increasing services to los angeles this month rate china evergrande bank, its chairman has resigned from his position. still to come, why markets could see that rate -- fed rate cuts coming sooner than later. bloomberg markets china open is next. this is bloomberg. ♪ you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the neces

sonali basak, our reporter, and leon kalvaria from citigroup. ahead, we are going to talk about ozempic and the ceo on the blockbuster drugs and the earnings they have driven. this is bloomberg. ♪ the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com matt: this is "bloomberg markets ." novo nordisk sales surged mostly thanks to the drugs -- and it was in big -- and ozempic. the ceo says sales will increase gradually. i spoke with him alongside katie greifeld. >> right now it is not allowed to provide for -- medicines so it takes a large change to open up for that. that is being debated in washington and could have been in the future. we see we are expending the access in the commercial space. we have access to some 50 million americans having commercial insurance and also some government -- we see it gradually ope

. >> citigroup group beginning layoffs amounting to roughly 10% senior management rolls 300 managers, to announce next layers early next year complete final changes by the end of the first quarter to look at stock, down half a percent. amazon launching a program to train millions workers in artificial intelligence program named ai ready, plans to train at least two million by 2025 on basic advanced a.i. skills includes general rateive technology that powers chat apps like chatgpt, 8 online courses available for different tech levels said free to access through amazon learning site small talk lost on gznew college courses may help "the wall street journal" reporting, more young students nervous in face-to-face conversations some professors working on students communication skills while in the classes practicing their introductions, handshakes to prepare for job interviews when they get to the real world that is really disturbing. some of your headlines. cheryl: . >> lawyers for former president trump squaring off, with the department of justice attorneys in this federal election interf

citigroup, apple, free cash flow.ed up three years, pre-pandemic, $55 billion in free cash flow. they are estimating 18 months out, 180 -- $128 billion. it is a terrible billion -- it is a terrible business. sarah house does not own apple. she is a senior economist at wells fargo. what is the run rate of nonfarm payrolls between we are fully employed and it is terrible out there? is it 100,000 or could be less than that? >> roughly 100,000 is what you would need if you are seeing the participation rates stable to keep the unemployment rate where it is. the fed is projecting the unemployment rate is likely to inch up over the next year or so and if you look at its long projections, suggests it needs to inch up. in that case, we are looking at lower rates, sub 100,000 unless we are to keep seeing the rebound and participation that has been so strong over the past year. that is going to push it up a bit back to 100,000, maybe higher. tom: who are the people to get us from 100,000 rate to we are actually 170,000? what kin

citigroup expects the deal to go ahead as planned. rbc says potentially it could come out because of this conflict. we will see how that pans out over the next coming week. lizzy: level oil markets in a precarious position. bloomberg's anthony -- anthony dipaola, thank you for joining me. and election victory that has sent shock waves through the region. the far right lawmaker coming in first in the dutch elections saying that he plans to leave the country's next government. let me bring in our reporter in amsterdam, diedrich. what were your key takeaways from this election? what were the winds that led here? >> i think you can rightly call this a -- we won the election yesterday. it's extreme right populist party, anti-islam. he wants to leave the eu. he wants to limit aid to ukraine. that's a big change for dutch policy. and then also a big difference between frexit. and that's 24% of the votes. so, he needs to find other parties to form a majority government with and then those extreme policies will be watered down. lizzy: i don't

tom: grade is not good enough and citigroup came out with something. it is a range-bound by, which you rarely see. worries about china. notice after 4:00 p.m. yesterday. the world stopped at 4:20. it is worse than apple. jon: this is the darling of the stock market rally this year. tom: some of these people are saying it works. maintained buy, but how much richer can rich get? jon: justin -- just another run-of-the-mill blowout quarter for nvidia. lisa, i think this is amazing to see. nvidia's third-straight double digit percentage beat. lisa: this is exactly what i was looking at, the actual numbers. revenue will be about $20 billion. the expectation sensibly was $17.9 billion. some people had expected as much as 21 billion dollars. this was punished in the aftermath, but this came even with the declines they saw in china, which means there is enough demand to suck up what would have been purchased by china, and raises these longer-term questions about the ability to produce enough chips. at a certain point this is really bullish. but we just priced i

had to make some fairly significant cuts among the staffers as have banks like morgan stanley and citigroupo these conditions. the banks know they have to pay per talent and they want to retain their best talent. for that staff they will probably go to bat for them. we have also seen other bengs going on a -- banks going on a hiring spree to stock up on talent for when markets start to bounce back. it is difficult for banks to navigate because they have to keep a lid on costs and wonder the levers they do that is by cutting staff but they want to keep talent for when the market starts to rebound. >> i remember the days not long ago when it seemed each and every day because of the competition for talent we saw a new headline about how much junior bankers would get paid at whatever shop they decided to go to but it raises the question about base compensation. if bonuses are going down are they getting more money consistently all the weight up the pay scale? sally: for bankers the size of their bonus usually do worse there base salary. the actual bonus can boost their pay many times. what they

health sector finance bankers have left citigroup for jefferies.t's after closing to new municipal banking department. sources say 10 bakers departed from jeffries includes three managing directors. meanwhile, a u.s. judge ruled the cofounder of bytedance has -- cannot return to his home in the uae. it puts on hold a ruling ground team of billionaires earlier request following his guilty plea last week to u.s. criminal charges. this sentencing is due in february. later today we will speak with the former ceo of binance. don't miss that conversation right here at 6:00 p.m. u.k. time. i just want to come back to the u.k. we will look at the consortium data that dropped overnight that shows that inflation is at a 17 month low. the six straight month of declines accompanied by a warning that this may not last. you sign unexpected drop in retail sales last month that suggest the bank of england's policy is hitting stores, which begs the question, when are the rate cuts coming. i'm sure it's a question we will put to the deputy governor of england, the m

citigroup up 16%. jpmorgan chase up 10%. strong performance with the banks.nd the laggards here as you see. joumanna, with the strong performance with stocks and bonds is what brings on the ga gains for 2024 is what has been priced in? >> everyone was saying we will see margin compression, margin compression, margin compression. that was october. now people in november are talking about the macro. november was the month where vo started thinking about not just hi higher, but what happens when something breaks? the central bank is not ready to talk about rate cuts and the market doesn't care. they are pricing in 100 points of cuts mennext year. that is the catalyst for the strong performance in equities for the month of november. whether that continues or the central bank can continue on the rate cuts will be a big question. >> to the extent to which central banks push back against the market against the potential rate cuts because the relationship with financial conditions loosening and markets moving higher and what the fed actually does and central banks ar

citigroup considering job cuts. where the financials go from here.the dow back in siveerto 35.poti triry >>> regional banks coming off their best week since november as investors weigh an end to rate hikes in the coming year. leslie picker is here to break down that group. good morning, leslie. >> hey, carl. you can see a little weakness here among regional banks today, but really last week's gains were due to, you know, some pressure coming off of rates. that's really helped the group over the last week or so. a new note by bank of america this morning says, quote, peak interest rates have the potential to serve as a mini clearing event for bank stocks. there are four main reasons for that. number one, it was clear from q3 earnings that regional margins continue to be squeezed by higher deposit rates correlated with interest rates. the concept of peak rates if true could relieve the funding cost pressures for the banking sector. number two and three are commercial real estate reprising and the potential for credit losses. lower rates make those area

down the stock is down 1% you can see from the intraday looks well off the lows of the session, citigroupto an outright sell. adding misery to the session on what's going on year-over-year the stock is down 40%, citi research is worried that high inventory levels will force the retailer to run more promotion, that is english or fancy language for discount they don't like discount especially before the holiday it did maintain the 18-dollar price target and that's not a compliment either, footlocker is above that $23.5 footlocker having quarterly results on wednesday this could turn around who knows cell tower crown castle towering above all of the s&p 500 stocks, shares are up 3.7% after activist investor elia investment and up the pressure on crown castle by building a stake by $2 billion in demanding more from executive and board leadership changes, it was three years ago that the activist investor suggested in overhaul of the fiber cable business in response the company made changes to the board and implemented a policy barring nominations of nonemployees over 72 years old to the board,

citigroup i presume the layoffs began today. >> this is interesting it is been hush-hush but jane fraserether of cost-cutting that involves layoffs i do not see any numbers just yet of how many people are being let go, it looks like it could be ten at least 10% of workers in several businesses and up to this point reports are indicating that they will do this, now it seems that the reports are saying she's pulling the trigger on this, to speak to the larger economic picture this is what jerome powell said was going to have to happen, it is happening. stuart: check the big board, five minutes into the trading session were up 100 points shy of 35000 of the dow, show me the dow winners amongst the 30 stocks, disney reached $93 a share, 3m is up, walgreen, nike, intel, all on the list, the s&p 500 by target up 15% kimco realty's is on the list, nasdaq composite sirius xm radio jd.com, microchip, but they're not all on the upside where is the ten year treasury yield it is going up this morning 4.51% despite favorable inflation news yields on the treasury up over 4.5% the price of gold on the

calling them the computer people on the screen right there they have an upgrade to buy from neutral by citigroup has continued improvement from the ecosystem for the upgrade, you are laughing. >> i think analyst upgrading it's always interesting hewlett-packard as been dead money when we look at it they are a dividend payer i don't disagree with the thesis i think there are a lot of people buying pcs and there's an upgrade need for hardware. >> when i came to america i lived in san francisco hewlett-packard was down the road they were king of the hill at the time. tripadvisor the good upgrade for bernstein they outperform they think the key headwinds for tripadvisor have cleared is this a proxy for book travel bookings. >> that's what it does i don't know the headwinds that have cleared it doesn't make any money, i always look for a path to profitability this is an online travel company that does not make any money. >> is my favorite part of doing an interview you bring your dividend pics in your going to start with kenvue that is old johnson & johnson. >> johnson & johnson spun out the consumer

and so i describe, for example, when bank of america and citi the group both -- citigroup both put out saying they would refuse to provide banking services to retailers unless they complied with their own preferred gun control policies -- mind you, not policies adopted by congress. and i describe in the book in the chapter on big business, i describe the leadership for bank of america that came to my if office -- stuart: okay. >> and they put in place a policy -- stuart: i'm sorry -- >> yeah. stuart: i'm terribly sorry, mr. senator. i've got a hard break coming up, and i would never cut senator the ted cruz off, but i've got to say good-bye. i'm going to buy the book. thank you, sir. more "varney" after this. meet the traveling trio. the thrill seeker. the soul searcher. and - ahoy! it's the explorer! each helping to protect their money with chase. woah, a lost card isn't keeping this thrill seeker down. lost her card, not the vibe. the soul searcher, is finding his identity, and helping to protect it. hey! oh yeah, the explorer! she's looking to dive deeper... all while chase looks ou

citigroup, there is a bunch of stories, a story said they're doing something operation bora bora, whatevers that. they're looking to cut layers of bureaucracy. every place that has bureaucracy is cutting now because they're really worried about next year us going into recession in the u.s. economy. why is that? well the fed will city higher longer. they may raise rates one more time. larry fink on blackrock was on this show predicting at least one more rate cut. he actually says he believes that. if you put all of that together. liz: rate hike you mean. >> i'm sorry. not a cut, definitely not a cut, a rate hike. putting all that together there will be compression on wall street, compression of reprofessional services and recession does that again, you can do that, it is one instance, i don't write stories because of one instance. there has to be something bigger from what i understand this is bigger than just them. it is going to be others, other accounting firms are cutting as well we should point out. pricewaterhousecoopers did some cuts and a few others. again it's the economy, stupid,

jpmorgan in much better bank than citigroup or bmc.ields will have pressure and churning near highs. charles: mark, i learned a lot from you. you wrote about the s&p 80 day cycle showing weakness since september 22nd. i have a s&p chart here. with less than a minute to go. help us understand. >> 80 trading days we seen peaks and troughs. it peaked on schedule in late july and bottomed on schedule. shows a peak near latter part of november near thanksgiving could weaken near mid-december. nobody want to hear. broader market went down to new lows for the year. only because of technology we held up. that is an important point. a lot of my cycles say we could have a few more weeks of potential backing filling testing then a bull market starts next year. could start mid to late december. reasons to be intermediate term. optimistic, but i don't think we're immediately going over 4600 technically at least. charles: 4600 wall of resistance. 10-year goes back to five. which go back in our foxholes for a little while? >> a a little bit more fox

booted citigroup downgrading foot locker to sell karen finerman also hitting the sell button on the stock foot locker now down nearly 40% this year there were such high hopes for mary's return. -- sold af sold half this position today. i've noticed, being on the street a long time, you have an analyst come out right in front of the earnings with a downgrade -- >> bold. >> bold, right bold step to take. but sometimes the way it works is that they have a good sense of it, because maybe management wants to talk down earnings. they want to lower the expectations around the street, right? so, there's two parts of the way stocks react to earnings if they can lower expectations, then maybe the reaction won't be so bad i have no idea if that's what happened here or not, but in my experience, i've seen that happen a number of times i'm a little bit concerned about the consumer and i have been very, very frustrated with the first few quarters for mary dillon i want to give her more time, but i just feel like at this point, and i'm actually -- it's a tax thing, as well, i have 32 days now to buy it

what's amazing you look at research report after research report with the exception of citigroup andbullish meaning they see higher prices and keep tweaking them, right, because it's not moving. this has frustrated the saudi minister who said last week this is a paper market, meaning what we show our viewers, that's a contract that's a -- press a button, computer screen. the physical market, actual delivery of oil to make gasoline and other things, may be different. he also talked about deals and you could see that quote, i don't think exxon will merge with pioneer for charitable purposes or for that matter chevron would do that with hess without having a reason. the saudi energy minister, even u.s. companies, exxon and chevron, see probably long term strong demand. >> strong demand they see strong demand, not because they feel like they have to consolidate for a period of existential weakness. >> the eia says we'll have 1% less consumption, lowest per capita gas consumption in 20 years, growth of evs, work from home, inflation, people driving less, but even still, kelly, that's a ma

my colleague at citigroup nailed the ascendancy of gm but you haven't seen it in the stock rice.: how investable are they now even with the capital return program? this is a conversation that we will have, but a lot of it is skipping over a low bar. you see that with footlocker this morning. sales -8%, the estimate can we get footlocker up premarket? it is skyrocketing by 11%. it is beating a very low bar. lisa: there is the bar to not file for bankruptcy. at this time it is about inventory unwind and the idea not performing as badly and not losing as much market share. how long can that last? jonathan: the opening a few hours away, $26, up about 9%. the outlook for next year according to the oecd, warning of a deepening slowdown in the world's advanced economies predicting that fed rate cuts won't start until the second half of next year. the quote in their outlook is unemployment will continue to inch up through the first half of 2024 and inflation will decline allowing for monetary policy easing in the second half of next year. the outlook could worsen if the effects are stron

economist at citigroup.ore we get to the serious stuff at hand, how do you save cultural -- citigroup with your incredible latin american experience? no other bank has that experience. how do you save argentina? >> what we are seeing in argentina is what we seen a lot of places which is this antiestablishment, anti-institutionalist trend that we are seeing in policymaking. when you look at the inflation rate in argentina you can see why people are looking rate change. tom: you seem so alone now in the constructive policy out of the pandemic. how alone will american policy be in 2024? >> one thing that really strikes me when you look at u.s. policy relative to the rest of the world is the deficit in the u.s. this is a country where we are running 6%, 7%, 8% of gdp deficit. there are very few countries that can do that, the u.s. may be the only one. maybe some other examples that can just consistently run a large deficit like that and continue to provide generous fiscal support so that it is a very different s

based on what we have heard, do you agree with citigroup's assessment that it seems unlikely he woulding claims? mike: i don't think he will pushback. if he gets past, i think he would say we are not talking about that yet. he will not push for a rate increase but they should leave it on the table, which is where i think the fed wants to be. the interesting thing is nobody is arguing with the idea that the fed will cut rates in 2024. the fed said it was going to cut rates in 2024. we will see what they do, on december 13 but it's a question of how fast inflation comes down. we are not really talking about -- we are not really talking about whether somebody is predicting this or that for the fed. look at what inflation is and how fast that comes down and that will give you a better idea of what the fed will be thinking about. lisa: michael mckee, stay close as you parse the data. we will catch up to get more details. we will get into the details of a soft landing or vona. the words of neil dutta, head of economics at renaissance macro research. does this data underscore the soft landin

i am surprised to see citigroup in the top 10.fice, they are making some efforts with ai. on the other hand, those banks who have not advanced with digitization and the cloud and the cloud in getting their data together can struggle, i wonder about these midsize banks -- do they have the scale to leverage these solutions? talent is a big issue. you cannot just buy talent off the shelf. you can get solutions, but who will implement them? lisa: how much will they pay them? we were talking about openai paying $800,000 to engineers, base level. how much will banks have two pay? mike: you will see a reduction in headcount and some of those savings put back into paying other employees more money, especially ai engineers. they are in serious demand, but if you go to one of the largest banks, you can scale these solutions across tens of millions of customers, as opposed to going to a smaller bank. what is your pitch? there are smaller banks in this survey the proposal that -- performed quite well. those winning in technology can keep winn