cheryl: i think we are more positive due to the regional banks and community banks.rns the spread based lending tied -- dynamic. when we think about the large money center, there is a lot of moving pieces. there is more intense competition and a need to spend more to keep up with fintech. you have tougher year-over-year comps in capital markets, which you have from the regional and community bank space, the pure play on accelerating growth, on steepening higher rates, and projected improvement. and plus, that is where you see likely nii continuing and we work through those things, bank transactions, by year-end and we think the sweet spot will. relative to the universals. romaine: let's talk about that because we see that reflected in share prices. a lot of focus on regional names. a year ago, we talked about the banks needing to start to consolidate. the only way they complete -- could compete with jp morgan and bank of america is by joining forces. is that necessary or can some of these banks, the mid tier banks, stand on their own? cheryl: really, where we think t

banks. i want to talk about bank earnings. america and morgan stanley, results both expected today. so far they've been disappointing. goldman shares have tumbled the most in more than 18 months after the firm posted a lackluster fourth-quarter. let's bring in david scanlan. why are expenses soaring? jp morgan, city and does that mean we will see it for the rest of earnings as well? >> quite likely, there has never been a better time to be on wall street than right now. you mentioned goldman sachs, about 33% last year, an astounding number. most of that is just compensation. are they paying the people? ? they are hiring more the headcount going up at goleman and jp morgan. they are feeling under threat from hedge, from private equity, from fintech, who are threatening to steal their best people. they are blunt about it, saying we will pay more to keep our best people. the result, expenses are rising, affecting the bottom line, and the stocks are falling, as you mentioned. manus: so what are we getting from morgan stanley? ? an

banks, eurozone banks. think it became very much a sector topic as well and literally banks overall are kind of becoming a double-digit yield or on a sustainable almost three year view. manus: do you think the market is positioned deeply long? we look at the index, do you think the market is long on banks, or is there more to go? >> i think there is more to go. think in europe the positioning in banks can become much more constructive over the last year. but when i speak particularly to my global investors, europe is still a little bit of a minority sport. so i think there is more to go. manus: what a line, europe is a bit of a minority sport. you are always a good sport with that. i'm on the phone as we speak. no more crypto for me. our guest this morning on banks at morgan stanley. europe's largest tech company, sap, plans to buy a majority stake in a fintech firm. why not? we will asset very question. this is bloomberg. ♪ manus: this is "daybreak: europe." dani burger is in london. europe's largest tech

banks getting battered.t has been a good start to the year, but jp morgan flagging low growth and higher costs. wells fargo now up, but having a volatile morning. regulatory concerns continue in that institution. u.s. retail sales sliding sharply in december. was it inflation, empty shelves, omicron, or has everybody simply done their holiday shopping in october? the white house nominates sarah bloom are asking to be the fed's top banking regulator. it could be a bit of a battle to get them all confirmed. from london, i'm guy johnson. my cohost this morning, kriti gupta. alix steel has the day off. welcome everybody to "bloomberg markets." we've got some data to get through. kriti: we do. michigan consumer sentiment coming in at 68.8. the estimate was 70. we are starting to see that consumer confidence really wayne as you continue to see in elation or pressures at record highs. this is important because in december, we saw a bump up in consumer sentiment after six months of that dropping. those inflationary

oog going into herbings season banks usually weaken but we are at new highs on many banks. kbe, the bank etf very high a well a good sign for investors, indicators for bank earnings season meme stocks, gamestop getting hit hard today as well gamestop is around where it was march of 2021. it dropped noticeably in the middle of december to the 130 range but on very heavy volume there is something interesting happening here today it is down, dropping into the 120 levels but the volume is not heavy at all what does it suggest in the middle of december it suggests people wanted to sell now it is down but on very, very light volume this suggests there is not a lot of buying interest sort the opposite. soyou get normal everyday activity and it drifts lower because there is not a lot of buying this is a change in tone it seems to me based on simple technical analysis looking at gamestop we want to keep an eye on the meme stocks. >>> now we go to the other half of the law firm of pi sanny and santelli stocks are lower, and thenning a key level. rick santelli is tracking the action r

bank currencies continue.e discussed goldman-s disappointing results and what to expect from bank of america and morgan stanley. that is next. this is bloomberg. ♪ tom: welcome back. pressure across european equities space. not quite at the same degree as yesterday. benchmark is down. flatlining in france luxury. accepter is getting a boost from earnings. over and spain, the ibex is up. retail is at the top of the list. food and beverage is lower. the first time since 2019. bonds are in positive territory. francine: a big deal. tom was saying that it is thanks to us that luxury stocks are doing so well. dani: how many cartier watches are you guys buying? [laughter] francine: it worries me. love the fact that tom mackenzie thinks we are that cool. tom: i now know what hightops are. i have them pegged. i'm going to go. i don't think i will pull them off. let's get to bank earnings. francine: inflation. your pair of hightops were less than a thousand dollars. only bankers can afford them. morgan stanley results e

so crypto crypto banks, the and bank crypto already has the super fast transaction speed. and it's also very safe if people protect their private keys. so seem easy is basically just piggybacking off of all these benefits of the regular crypto currency or even bit quite but with more of the drawbacks such as the lack of privacy, the lack of security. and most of all the lack of control as you're basically handling handing all of your financial freedom away to the centralize authority. so no, all the real benefits will all end up benefiting the central authority. not the actual people. as shocking that the central bank would be in favor of it guarantee that gives it more control than we've got about 30 seconds left when it comes to some of those concerns. what we say are the biggest ones for when americans do get that digital dollar. yeah, i think the biggest concern is the fact that, you know, in the cash society government doesn't completely control you. right? because you have access to money and you can obviously keep it outside of the banking system. you still have it

community banks in my state are the backbone of banking. again, because of our very small population. so thank you so much. as you know, i have a keen interest in wyoming's special purpose depository institutions applications. and is it a fair characterization to state that the federal reserve is currently making progress on the important legal and supervisory issues surrounding the wyoming special purpose depository institution? >> yes, i think that's an accurate characterization, senator. >> thank you. tell me why you believe responsible financial innovation is important to both monetary policy and bank regulation. >> well, we're seeing quite a bit of innovation associated with technology. consumers now have access to their ability to make transactions using their mobile phones. these kind of things i think are very important. they're going to continue to evolve. the financial sector has been a very dynamic sector, i think it will continue to be. and we just want to make sure that's done within the existing guardrails so that like activit

commercial banking sector. so i think that's the major difference. that's a major innovations that economic one really not really technological. so the money's not going to be at a wells fargo or bank protection is going to be with the fed. that would be the in the u. s. such a thing, we're engineers, that's a big, big change and radical restart in terms of how the banking industry works. and i think to your question, why is this not happening in the u. s. was it commercial banks in the u. s. in general, more powerful than they are in other countries. large parts of the federal reserve are actually owned by commercial bank, certainly the regional federal reserve bank. so who then appoints members of the board governors. and so the commercial banking sector in the u. s. is probably thinking really bit about there's not a number is hostile to these initiatives and isn't a bad position to control it. so i think that's why the fed as not jumped on the bandwagon just yet. they were making some noise about about half

they're a very digitized bank.d like wells fargo and bank of america is highly sensitive to interest rates which means it is in great position for 2022 if the fed raises rates they've have $6.5 billion more and if the fed does nothing the only reason we don't own bank of america for the trust because we like wells fargo. bottom line, the banks are all over the place this earnings season which goes to show you the important of individual stock picking all banks are not created equal and we get big sell-offs where everybody says woe is me. take a look at this business tyler in california. >> caller: hi jame, thank you for the work that you do i want to ask is when do you think would be a good time to buy visa people seem to be itching to go out and spend and some will be here. >> right that is a great question now we own mastercard and for the charitable trust and jeff marks and i said that is cheaper and better and faster than visa. visa is a good company but if you want commerce and cross border commerce, the best

technology plays in a norms part in not only the traditional banking but also where banking is going., it's 40% of their total employees and jp morgan, that number has risen significantly versus where we were five or 10 years ago. lisa: what is your sense of why loans are not increasing more and when we might see a shift? >> aiko back to personal savings rate and household debt. the personal savings rate just got back to the normalized historic levels of 7% back in november. they were as high as 18%. it's interesting whether the consumer has changed. it's like a 9/11 or the financial crisis. does the pandemic make consumers more conservative, not willing to be spending on their credit cards and maybe trying to save up to buy a house which are so expensive. it's a behavior issue that we won't know maybe for another four quarters. jonathan: supply chains are part of this story. you get the commentary from the ceo jamie dimon saying we benefited from allocated capital markets that picked up in lending activity. the lack of vehicle supply is slow to originations. how does the supply chain

but rather smaller cap regional bank, community banks and mortgages and insinstitutions. three on the screen in banking opportunities. those verizon bancorp, washington trust bancorp and dandy springs bancorp nap focus on the first, horizon, a feel for the investment opportunity we see horizon has a mark cap about $1 billion. yield abouts 2.8% growing dividend over the last five, six years clip of 15% and a pe just 10.7 interest potential, growth potential to rising rate environment and low multiple we think that's attractive. >> yep detail on horizon washington trust and the other games mentioned. what would you do? results in the morning from biggest banks. what would you do with them? why might not not have quite as much up side >> larger money center banks have upside as well. additional upside potential we see with the smaller cap regional banks from the m & a perspective. see it picking up towards latter part of 2021 we think that trend around consolidation of regional bank space continues and also we know banking is basically becoming a technology game. those banks

and basically what is that the market begin to lead the central banks by the nose and the central banks got no option whatsoever. there was a difference in those days because in those days the central banks went as independent as they all know, not that dependencies in someone's imagination. but you know, the bank of england, for example, took its instructions from the u. k. treasury ministry, and it was the politicians are completely clueless and service the treasury because there was they were keynesian to a man. remember, the keynes actually worked for the treasury. so suddenly before the, the, the 2nd world war in a bit off the 2nd world war. so they were all sort of into the sort of keynesian stuff and consequently they, they just didn't understand markets and it was market basically the whole thing done. and we had 3 stocks which had 15 percent coupons, that was a 1515 percent, a 15 and quarter percent, an a 15 and a half percent treasury. just to mention, if the fed had to introduce us treasury is with coupons even half that what that would do to finance is in the government. fin

and the banks don't want that . so what they're going to try to do is car about as best they can ways to make the digital dollar fit their system rather than changing their system to, to fit a digital dollar. but the bottom line here guys is that it is, it is definitely going to happen. we are definitely headed that way because the digital system is a better system. there are a lot of problems with it. we can talk about that, but it is a better system overall. and in a quick example of that is the swift banking system. the fact the big coin has already rendered the swift banking system for international exchange and international deposits. a rendered it a relic. and so now every bank in the world is trying to move to crypto to settle deposits, as opposed to swift. it just proves its better technology and we will get there. and christy, we know what the central bank is saying. the pros are, but in your opinion, are there real pros, the u. s. forwarding their own digital currency for anyone other than the government?

the concept of then having bank-like risks managing bank-like divisions is similarly point but it should be risk adjusted and based on the type of activity, it should be what drives our policy. >> thank you. and let me just say, ms. goldstein, i'm going to submit to you a written question because we're out of time here, but i do think that the examples that you provide in the case for western union, provides a lower cost transfer, is an unusually expensive transaction and that people who were interested in such a transaction and were concerned about lowering the cost could easily construct the transaction in alternative ways that would be much lower cost, but i will submit a question for the record to clarify that. with that, mr. chairman, i yield back. >> thank you, senator toomey. senator reed is recognized, from rhode island. >> thank you very much, mr. chairman. professor allen, you i believe invited us to ask you about the monetary policy aspects of the stable coin. we all understand that a critical part of our economy is the ability as the federal reserve to control money supply. s

we own european banks. you could use the eufn, that's been on a tear we're looking at other parts of the world that are opening up, that individual stricter rules, you know, they have a ton of catch on the balance sheet we think they'll have more value lovers versus the u.s. here, especially since the valuations only more recently have popped up we've seen the u.s. benefiting pretty much all year. >> are you a buyer, renter, seller of banks? >> a buyer and a renter. here's why, tyler. i think this is a great example. if you're looking at wells fargo or jpmorgan, where is it trading versus books that's what we oftentimes use as a measuring stick. we're not necessarily looking at p.e., but what is the price versus the book? you look at something like jpmorgan, it's more than two times book that's expensive wells fargo has rips out and outperforming, and basically 1 1/2 times book, so i think you have to look at each one of these names in a different manner to see where they are, which one is a bit more expens

banks. i think they were chartered fact and 16941696 if i'm not mistaken. and interest rates in the u. k. a 300 year low. recently, but i guess they're, they're starting to take higher. what can you tell us about what's happening over at the bank of england? are they going with the crowd of the globally, are they making any kind of a stand against that? i mean, you're right there. what's, what's coming out of their office? i think the 2 things to consider. i mean i listened very closely to what andrew bailey has been saying and is clear to me. he has no clue economics, i'm sorry to say, but that is the situation. moving can no road king how to fall back. right. you can always. but bailey, basically, i think, is being put in place is a safe pair of hands and by safe as we made some that someone was part of the amorphous blog, that is all civil service. so you know, that's not looking good from, from, from the top. we've got rising interest rates in sterling and we have got rising interest rat

we are still on banks and what does that mean for the banking sector?al: on a structural side, it is true that there are not that many banks in europe, so there should be consolidation. the continual challenge with europe is that despite having a common market, it is difficult for probable m&a to happen in the banking sector. the structural story is negative but the cyclical story is positive. the euro area banks in general, not necessarily the u.k., have the upside, because i think the euro area cyclical story has more upside and valuations are more attractive as well. tom: more upside for the european banks on the back of that cyclical. bilal hafeez, ceo of macro hive. thank you. the series of diplomatic talks between russia and nato failed to make a breakthrough. we will have more about geopolitics next. credit suisse is down 1.6%. this is bloomberg. ♪ and there you have it. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet, but mine has 5g included. relax people. my wireless is crushing

banks and do not present the same risks. stable coin providers do not engage in taking the deposits and making those in the -- making loans in the way that banks do. it is not appropriate tailored to the potential risks. requiring stable quest to become issuers which stifle innovation -- stable coins to become issuers which stifle innovation. it is unlikely much of this developer can happen within the banking system because of the onerous regulations which create a difficult environment renovation. allowing entrepreneurs to innovate with digital assets like stable coins will promote greater competition and deliver better results for consumers. the regulation of payments activities should create an issue playing field -- an equal playing field. venmo, apple pay, paypal are already subject to a state by regime and federal regulation. recognizing different business models, there should be at least three options available for stable coin providers, to operate under a conventional bank charter if they two, they couldn't comply wi

our nation's largest bank. with that much money tied up, that's pretty much the definition of a systemic issue in our economy. those big numbers have come with big promises. we've been told the block chain, the technology these coins are built upon, will democratize money and build teamwork inclusive economy but none of these promises has materialized and likely never will. instead we have gotten while financial speculation. we've heard before this committee the wild price swings and high transaction fees from any cryptocurrencies make them useless for payments. the one thing they claim to be designed for. stable coins were supposed to solve this problem. unlike other cryptocurrencies, their value is not based on market enthusiasm, a stable coin is to be backed by real assets held by the company that issues the stable coin. stable coins or particular types of cargo currency whose value is managed by a single company. these include tether, circle, and abracadabra. a fast-growing scheme that makes magic internet

the bank of korea this morning and speculation on the bank of japan.u are calling for potential tightening. what are the biggest chess pieces i need to move in my portfolio to prepare me and protect me? >> it is very tricky. that is what we have been trying to do. a global bond investor cannot just go low weight cash in a couple days. it is a couple of strategies at this stage. there are places you can look in your portfolio. we think duration is a low information trade. we prefer to play the curve if you like. actually if you look at the parts the curve in the u.s. where you are getting paid to take some of that risk, it is probably the very front end of the curve. why? because we have fully priced in four hikes for the fed. it is difficult for them to do any more than that. therefore that is a good spot. the dollar, more tricky this year, but should do well versus emerging markets. perhaps looking at strategies to try to be defensive on the credit side is also an area we have been exploring. across the board, the curve and credit as well. dani: you b

banks.t we do is we take a look at that spend relative to the size of the balance sheets. what you will find is that most banks will be spending between 40 and 45 basis points of that balance sheet in tech spending. the community and local banks, they will offer basic services. they may not have the bells and whistles you remember when we were younger, and most of these functions we didn't use, we had a hard enough time turning the clock off. well, technology today, what we see is there is four basic functions that consumers want on their phones. they want to deposit a check, check balance, pay a bill and transfer money. all banks can do that. baking can be competitive but jp morgan spends an enormous amount of money on technology. tom: we didn't have you want to talk banks. the price of lobster is a scandal and it outrageous what lobster costs here. i know it is chinese imports pushing the market up here. it is outrageous. >> it is. it is interesting you bring this up because it is a topic

is the most asset sensitive bank of all the big banks.t at higher rates as you get that steepening of the yield curve, right, gerard, that's the bread and a butter of banking in essence. >> that's correct. and you're bringing up a very good point about the funding costs. our banking system, both jp morgan especially, they're flooded with deposits and so when rates start to go higher, they're not going to be required to pass on the rate increases to their depositors so their funding costs will remain flat but their yields in their portfolios that are linked to those higher rates will go higher, so the spreads will widen. dagen: what about citigroup? what's in store for that bank, you think? >> the company is moving forward with its exiting of certain businesses. last night they announced the seam of some of their -- sale of some of their asian businesses, earlier in the week they exited the consumer business in mexico, so under the leadership of jane fraser, she announced the slimming down, we call it shrinking profitability. the company n

we want bank earnings season was ugly, but bank of america did themselves proud i bought some stock today. >> steve, trinseo. a perfect value play much more ahead. >> >> new man. >> that was one second th thank for watching. >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money," welcome to kay america other people want to make friends i'm trying to make you some money my job is to entertain and put things in context, call me or tweet me at jim cramer let me tell you how that approach this market after yet still one more hideous decline, 40 points, a lot at the end. s&p seeking 4.9 and the nasdaq tumbling 1.15% i need you to understand that there is another way to look at the market other than what we're seeing on our screens. other than just throwing your hands up and feeling sorry for yourselfand the pain you're enduring because of well-known factors. well all know the litany of woe, let me toss them up a

so the banks is a sector, within the banks, it tells you something very interesting when you look at the hiring and the headcount going up in the firing and headcount going down. lisa: the footprint of those profiles are very different because the ones that are firing tend to be the big more traditional lending banks. i'm thinking of the wells fargo's of the world or bank of america trying to streamline some services, whereas the investment bankers are the ones beefing up their teams in order to capture some of the market activity. it points to this bifurcated nature and the banking world, much like the tech world. jonathan: and the show in many ways. j.p. morgan down 7%, wells fargo up almost 15% year to date so far. something to think about. you keep talking about the most important inflation print of the year, you keep putting to march but may 11 is the inflation report. is going to be very interesting. we see the peak in inflation and then a different way to kicking in 12 months ago. if it phase materially, that could set the tone for rate hikes. tom: i thought there was a bliste

the commercial banking sector. so i think that's the major difference us major innovations and economic one really not really a technological one. so the money is not going to be at a wells fargo or says, bank, or jackson, or what is going to be with the fed. that would be the idea if in the u. s. of such a thing were introduced. that's a big, big change and radical restructuring terms of how the banking industry works. and i think to your question, why has this not happening in the us? but i think the commercial banks in the u. s. are in general, more powerful now in other countries. last part of the federal reserve, russia owned by commercial bank, certainly the regional federal reserve banks are who then appoint members, the board of governors. and so the commercial banking sector in the u. s. is probably feeling really i'm been about this not example is actually hostile to these initiatives and isn't a better position to control it. so i think that's why the fed as not jumped on this bandwagon just yet. they we

other banks aren't.nt are you about that return to loan growth as we move forward through the year? walter: if we look at some of the credit statistics, people and companies are starting to borrow money. it consumer lending is starting to come back. i think the real question here is for investors and for the market in general, is the fed going to be able to walk this line of tightening rates, but not tightening too much to slow the economy down and ultimately push it into recession? i think that is the struggle you are seeing with the market today. we have seen a violent rotation between growth and value, but now the value trade, people are saying, wait a minute, we are getting softer economic data. are we slowing down too much into a fed that seems pretty bent on tightening, the market thinks three or four times by the end of the year? guy: the financials and many doubles minds are meant -- in many peoples's minds are meant to be a hedge as inflation rises. do you think they are going to be able to fulf

i think it catches the limitation of food banks, food banks, most food banks still are working on a charity model, which is, but for the, the power of those with money of donations. do those food banks work? food is an entitlement without it. we can't live and for food banks is to say these are a good thing is like to say, well, our health care system is, is doing great look at everyone can have access to an emergency room, as opposed to say, why are people hungry in the 1st place, why are people using a food bank in the 1st place, they shouldn't have to get to that point and food banks themselves in the united kingdom say we shouldn't be, shouldn't be relying on us. we're just doing our best at the, at the final point. but at the very beginning, families shouldn't have to seek charity for food is an entitlement. they should be able to feed their families by matter of course. and the right to food is enshrined in the un. well, like any right. it's an issue that people debate. i think the right to food is one of the least controversial rights out there. i have, you know, even countries that

banks in wyoming? >> i do. i don't favor asking community banks to put in place those kinds of risk management. i think to the extent that a supervisory guidance is appropriate for large banks that have a big imprint not for small banks, we don't want to burden community banks and. >> thank you very much. community banks in mice they are the backbone of ranking because of our small population so thank you so much. as you know, i have a keen interest in wyoming's special-purpose depository institutions applications. is it a fair characterization to state that the federal reserve is currently making progress on the important legal and supervisory issues surrounding the wyoming special-purpose depository institution? >> yes, i think that is an accurate characterization. >> thank you. tell me why you believe responsible financial innovation is important to both monetary policy and bank regulation? >> we are seeing quite a bit of innovation associated technology, consumers now have access to their ability t

i mean, look at banks for a moment. so while they talk about net 0 targets, that hasn't really stop them from continuing to finance, coal oil as well as gas ventures. absolutely. we have a, another piece of analysis coming out in about 2 weeks time, which really looks at what banks have disclosing to us. and while you see a significant number of banks saying they're aligning their own internal practices and if the investments and lending decisions with the power agreement with a below 2 degree world, this is not yet translated into a shift in their portfolio. we need to see that we need to see it quickly. i think not enough focus has been put on the banking community in the space. so we have the momentum. now we have the scrutiny and i think civil society and other actus that's where they need to be. focus the financing of these things, needs to stop and banks play a major role in that. ok, nikolai bartlett, thank you so much for speaking to us from london. thank you very much. now before we leave this topic, one more r

banks kind of sold off, the banks that are more levered to capital markets activity, normalizing andkind of midday after the initial weakness was investors coming into the more regional bank names that are levered to higher rates. i think that is probably going to be a trade, especially on a relative basis i'm not sure on an absolute basis, especially if the tape continues to be weak i think the relative trade of getting into regional banks that benefit from higher rates and kind of away from the -- more of the universal banks that are levered to more thick trading m&a and different types of fees they've been generating the last couple of years, i think that's going to continue. >> and i think, if what i'm hearing is -- through it, rj is this, i know we're cnbc and we love the big banks, j.p. morgan, we love talking about them but it sounds like we're going to make banking boring again these regional banks that we don't talk about, they collect deposits and they lend money, that's it. sounds like those might be the places to be. >> yeah. i think that's right i think you nailed it. it

like some banks around the country and over the years her bank was sold to a larger bank and became part of the story of increased consolidation and financial sector in the pattern has repeated itself for decades in minnesota and across the country over the last 30 years the number of banks in the country has been more than cut in half and we seen, i think, the harm industry consolidation can do broadly especially in small towns and rural places, i note the commas and questions of my colleague senator rounds with whom i've done a lot of work of congregation and agriculture. one of the important duties of the fed is to review mergers, can you tell us how we think about bank mergers today? what you see as the impact of consolidation on concentration and access to financial services? especially underserved areas. >> we operate under a statute that requires us to consider a number of factors including competition and future prospects financial and managerial resources, the needs of the communities to be served so all that goes into it and there is a bridge where harry apply those things and

bank, particularly jp morgan.morgan has expected expenses to rise to 77 billion, almost a 9% increase. there are also modernization costs. wells fargo says the expenses due to -- but there is pressure on pay across the spectrum. junior bankers got a lot of attention when they crossed the $100,000 a year mark. bloomberg had a report on friday that the top 1% of goldman sachs ranked the best 400 people and all will get special payouts on top of their base and bonus pay. that's millions of dollars of what they are earning in multimillion dollar pay packages. they are doing this to fend off poaching from other corners of wall street. shery: the competition for talent is really heating up. the issue is the loan growth was expected but that hasn't materialized. what happened? >> there's some indication loan growth was going to be picking up but it was flat on the air, especially where the consumer was concerned. loans were down 10% on year for wells fargo, up only 1% at j.p. morgan edits consumer businesses. wells fargo

and bear in mind that got into bank lending rate or prime lending rate of the people's bank are trying to a 3.8 percent. that would be unthinkably high in the us or in europe in the states that just so far beyond what we've seen the market. so the chinese have been far, far less aggressive in terms expanding the monetary supply. and so they've got maybe more wiggle room there to, to touch of that. and also having a big problem right now with the housing market and the housing bubble bursting. so the basically trying to re inflate that the time to use punish policy to drive money into the housing market with using bank reserve requirements in the hopes the banks will lend more into the housing sector. so that's the problem. the chinese are facing basically a crashing housing market and the trying to boost that and reinstate that back up. and we know our tabio, that china has battled energy and supply chain shortages, but they really have the same kind of fight with inflation that we have seen in the united states and across europe. now, obviously, as you just mentioned, they have a comp

more hawkish central banks are way ahead. they are behind other central banks.heir policy was not perhaps designed for the challenges of the pandemic. the average inflation target was a considered attempt to address the disinflation of the previous decade. what the fed did not know is that would all be solved for them in one year. they are behind other central banks. >> it is the path of least resistance for the dollar. what does it mean for inflation crucially? this is the strength of the dollar. >> hear your interesting -- hearing the role of the dollar. if china is easing, the u.s. is tightening. it seems natural that the dollar would go up all else equal. and at some point, that might start to tighten financial conditions from the perspective of the fed. i think it is important to incorporate the external position as well. i think you're acquired right. how obvious is it that the fed will continue hiking through the summer if china was easing? it seems dangerous to assume that nothing would happen. >> it has been so tumultuous. can you find shelter there? wi

so the world bank has called this a inequality pandemic. why have we seen such a stark divergence between the world's richer economies and the world's poor? yes, it is really, is a stock drivers. we're heading into a very pronounced global slowdown, as you mentioned already, before recovery is complete, an emerging market next year. after 3 years of recovery, i would support an emerging market, developing countries with 74 percent below to prevent any trend. and it cost to call me back to trend as if to make it up. so it says if the and emerging markets of developing economy as well on the law flight path from advanced economies. and a reason for that, is in good measure because of different policy support. both groups of countries implemented extraordinary policy support fiscal and monetary in 2020, a sort of identity, but emerging market to developing called me. so i've already started to withdraw it more than one 3rd of already type a policy. i didn't 60 percent of them already lost here. fiscal policy was a driving role that will only b