i heard that other banks also, well, in particular, there are other state banks , that is, they move course of formation and again well, i will present my point of view as an expert. i believe that this is a 100% correct decision. so why? look again, let's be honest . buy a dollar you you come to the bank and you buy at what rate do you buy at the market rate that is, what is there today, for example, there are 35 there or 7 conditions yes yes yes yes that is why there was an opportunity that is i did not well again banks gave the opportunity to card owners if they for example, they withdrew cash conditionally abroad for 50,000 uah, because at the national bank, at the same time, the limit used to be 100,000 uah. i read the tourism card and saw everything. he saw the restrictions to overcome it, that is, but it was still possible even for 50,000 uah to buy and withdraw cash by at a much lower exchange rate, it is clear that you can withdraw cash there in poland and sell it in ukraine, that is, it is wrong to make money on it, because in principle, in the end, it is ee . the national

hmm, and the state of m-m financial condition of banks, indeed banks are currently not reporting. yeah, uh, but we're thinking about how they should start disclosing . and as we talked about the balance of payments. you also believe that banks should be transparent to their customer depositors. e for your partners. oh, and this issue is now being actively discussed. in what format, when to start disclosing, so that banks start disclosing their financial statements. well, this is probably a qualitative assessment after all, and the banks, and it's better to have passed this crisis. period than we expected and output at the moment that the systemic capitalization of the banking sector in the systemic capitalization of the banking sector. not necessary. at the beginning, i personally thought that in february in march, because the financial shock to the financial sector was of such magnitude that, despite the previously created buffers, despite the achieved financial stability, such a systemic capitalization of the bank would be required. we do not see a need for this now, but for ind

uh, and not to mention the bank itself, so it is not the banks themselves who are solving this problem they want to earn on these transactions. it's just that these transactions have become very risky. yes? and the same applies to, e currency treasures. uh, they can be frozen. eh? and therefore, banks also reduce these risks for their customers. you say why don't uh, so don't give people the ability to withdraw cash dollars, yeah and keep them under the mattress, but the fact is that in our country, unfortunately, uh, the importation of foreign currency on a personal note into the country is also prohibited. we also have sanctions here and therefore the supply of personal currency in the country is limited. if it is a personal currency that is already in circulation, there is cash in banks. e, which is designed to enable people to withdraw cash currency within the allowed limit. i remind you that the limit was set to 10.000. and what's important? uh, this limit covers 90% of all currency deposits, that is, 90% people who have foreign exchange deposits. they can fully withdraw by invest

bank earnings, bank earnings. can make continue the momentum we saw? what are the credit provisions looking like and baking revenue for goldman? at 10:00 i'm at the national association of homebuilders housing index -- at 10:00, the national association oval way to lose -- the national association of homebuilders housing index. consumers wary about high prizing putting a damper on sales. at 4:00 p.m. eastern, flows for the month of may. there is a lag to the capital data, six-week lag, but it could help explain the movement of dollar and the treasury of buying from china could be interesting. we expect the china holding of u.s. debt could fall below $1 trillion for the first time since 2010. jonathan: the u.s. national average gasoline price has been down every single day since june 13. asked week, commodities continue to get hammered. -- and last week, commodities continued to get hammered. tom: we still have inflation and it appears to be persistent and drives the high nominal gdp. to me, the ultimate mystery to get to pelfrey, is what is the revenue

banks get the fees, but banks do not set the fees. instead, the banks let visa and mastercard set the fees on their behalf. so the same schedule of fee rates applies for all banks in the network. this means that all banks in the network are guaranteed the same interchange fee, regardless of how efficient or inefficient the bank is in running a card operation or preventing fraud. it is a gravy train. when visa and mastercard raise interchange fees, banks want to issue more cards. because they make more on each swipe. and visa and mastercard profit when there are more swipes because they take their own cut, called a network fee, from the merchant on each swipe. but merchants and their customers take it on the chin. and we are going to hear that firsthand today. what can merchants do to try to keep fee rates down? not much. visa and mastercard are negotiating agents for thousands of banks. if a merchant wants to be able to accept payments from customers, they have to agree to visa and mastercard's fees and terms. i remember at that heari

small banks to large banks and credit unions. they'll compete with one another and innovate in that complex and dynamic marketplace. autumn in the consumer winds from that competition. when the consumer is empowered to transact with products that are tailored for them, investments are made in the system to manage risks and keep that system secure with high integrity, the consumer is empowered to shop at the point of sale, it is the merchant that benefits from that flow. any notion we are not operating in a highly competitive market we fundamentally disagree with. >> do you have anything to add miss kirkpatrick? >> i would say the payment ecosystem has never been more competitive than it is today. in addition to the networks, as i discussed earlier, there is competition that comes from by now pay later providers, while it providers, digital currencies, regional debit networks. you know, the definition of market power is really an institution that can raise prices while also reducing consumption. mastercard motivations are the exac

rate of the commercial bank was five, well, first of all, no one expected that now the national bankeduce the accounting machines, there were no expectations regarding why deposits do not grow in some banks, they grow in some, they do not grow. it depends from the liquidity, is it enough or not enough privatbank bank is liquid enough good and tell me at least one commercial bank that does not have 25, but i have many banks that have 20 + 20, how much is 20% and plus there is 20 i will just go tomorrow you can go there is a high interest yunex bank and it won't collapse tomorrow, because i don't even know that, you know, they'll take it for 20 and then i'll look for five years, it won't collapse. this bank belongs to dragon capital , everything is fine with it and let's have someone to contact your family without advertising but in principle well for why can commercial banks give money to the national bank for a so-called deposit and receive this money to put it under what is 24%, that's right, it doesn't work like that well, because it doesn't work like that, again, how can banks not

i know that there are problems with plastic in banks, at least one large state bank says that it cannotssue plastic cards because there is no supply of this bank plastic, and where is the second one encountered such problems with the import of uh, this is uh, thread for embroidery, uh, strangely enough, they say that this is not a critical import and that they do not give permits for it, and buying these threads was a retreat in the direction of hoping for to remove currency restrictions completely during the war is it possible or still not worth it until we sign eh until russia capitulates yes and the restrictions will not be completely removed our victory returning to a peaceful state is of course a very important prerequisite for starting to shoot so seriously currency restrictions it is unlikely that we will be able to do this until now, but even after our victory, i think that the process of removing currency restrictions will be gradual enough, we may have passed this way in 2006 and 2020, and i think that we will use the experience that we had in order to remove restrictions as q

these are not the assets that regional banks own. these are the assets of banks. i think their dilemma, and there challenges are different, and it is also going to be quite stark because last year, it was an incredible year. the comparisons are dramatic. don't forget, jp morgan had a difficult quarter, and it turned 16 on equity. morgan stanley had a difficult quarter and earned 15 on equity. i think you have to remember the underlying basis of the companies is still pretty good. were not looking at a meltdown in the financial sector. there is a question as larry mcdowell said, and at what point do markets overtake the economy? do they overtake the narrative in a broader world? how are we looking at a difficulty of companies raising money, they speak to you as someone who is a birdseye view into banking activity through kbw? thomas: the world has changed, and every day goes more. i am personal opinion about the inevitability of the recession continues to grow, and there are actually pockets of business that feel like they are already there. if you're in the equity

we have banks to think about is well over here. how will this impact banking? the story is going to evolve next week into the ecb. there is a whole range of problems. the fed has its own problems it needs to be thinking about. it needs to be thinking about what it is going to do, if it is going to hike 100 basis points. you pile on top of that one is happening in the banking sector as well, fascinating to see the results kicking off in this way. you have jp morgan down 3% or 4%. morgan stanley is down around 3%. jp morgan, we now know, temporarily suspending share buybacks the bank did report second-quarter results that fell short of estimates. it is also turning up the heat on scrutinizing the lending books. the cfo talked about on that issue earlier. >> this morning, we're going to scrutinize even more aggressively then we always do. we do that all the time anyway, but of course, we want to turn of the heat on that a little bit. guy: that brings up to our question of the day. what is the bottom line for the banks? what is the bottom line for the economy from

of deposit at 23%. and in fact, in this system of commercial banks of the national bank, 200 billions are now closed , that is, which circulate between them in the economy, this money does not go to that banks earn billions of hryvnias in the economy with that money, the country lives now by the way, if we look at the numbers we prepared them in advance, so for which penny in general, which penny does the state budget receive we can see the visualization of the calculations and see that the most taxes are precisely the most money directed by taxes, it is customs and dividends of the state, the state of state-owned enterprises, 300 billion, on the second step are the national banks, which contributed 209 billion hryvnias to the budget, in third place are already grants and loans from western partners. well, and then again after all, the purchase of already military records of fluctuations by private banks and ukrainians well, that is, at least the figures seen, they first of all show that in the conditions of war, ukrainians still provide their country at our own expense, not what we

banks there with a cash dollar, this will give the opportunity, well, let's say so, for banks to be more specific with non-bank financial institutions it should also be said that the national bank has allowed banks to sell non-cash dollars to citizens, that is, if a citizen wants to buy dollars, he can come to the bank and buy a dollar deposited on a deposit or from a card there, well, it can be done remotely. that is, you you can buy u-u dollars and up to uah 50,000 and put it on deposit e there is a much more profitable exchange rate, i.e. much less than what is available on the market today . that there is not, unfortunately, the employees of the cash registers informed us that free cash is about the american dollar. now this cash will appear, i repeat, there is and there is a whole range of reasons. well, for example , there are objective reasons why it was often not there. cash was brought in mainly, it is air transport, well, there is no air transport in ukraine now due to the war, so it is clear that there are other reasons, objective reasons, i repeat once again, there are n

bank _ good morning to you. good morning. bank stress i good morning to you. good | morning.rning. bank stress tests, we became familiar _ morning. bank stress tests, we became familiar with _ morning. bank stress tests, we became familiar with that i morning. bank stress tests, we became familiar with that after| became familiar with that after the 2008 financial crisis but they have been delayed in the uk because of the war in ukraine, haven't they? how strong are our banks currently? they appear quite well capitalised at the moment which is important because that is the question that protects depositors from losses in the event that one gets into trouble. and they are maintaining their operations as usual. rising interest rates, a little bit of a double—edged sword for banks. because on one hand,it sword for banks. because on one hand, it approves their margins, their profits, and that actually protects them a bit but on the other hand, it increases the possibility of loan defaults and causes problems for borrowers and so forth and can create faculties forth and can create

central bank statement, and what will these banks think about this deal?hank you with regard to our operations in the foreign exchange market under the budget rule, if it is introduced this year, we are, of course, ready, if it is introduced we are ready to conduct these operations are within the budget rule. the only thing is the parameters of these operations. mm. we will announce only after this decision is made under the most budgetary rules, but certainly before these operations begin to take place. we're going to be predictable here. but what will we buy? it depends on the ministry of finance, because we will do these operations on behalf of the ministry of finance and tools. what will be determined by the government here, as regards the impact of parallel imports on inflation, we see somewhat differently. we believe that, on the contrary, parallel imports will have a disinflationary effect, because the supply of goods on the market in russia will grow, and therefore, uh, there will be a more likely disinflationary effect. uh, alexey pavlovich, you w

what is the situation and we will talk . on the national bank's decision to adjust the official exchange rate of the hryvnia to the dollar by 25%. let's talk about this decision of the national bank, we will also have e-e inclusions that will relate to the situation on the fronts of someone e-e nuclear blackmail of the russians and military experts from defense express - this traditionally at the end of the next hour well, right now we will pass the floor to our colleagues ani eva melnyk , we will return after the news thank you maria i will tell you about the most important thing with the news editor, in particular about the fact that russia is preparing to change the status of the kherson region and part of the zaporizhzhia region - this is reported by our intelligence, stay with us more about the situation in kharkiv, the number of dead as a result of the morning shelling of the city of kharkiv increased to three, and another 23 people were injured, the kharkiv regional prosecutor's office reported at 9:30 a.m. the russians had previously shelled a public transport stop near the marke

cupcake banks and so on.he morning i think we can talk about it. yes, mr. yevgeny , what do you think is the success of this decision to change the name of alpha bank to sens, uh, why exactly sens and not some other name? well, we remember we know that the russian standard e-e became a forward and for some time, but it did not help him, the story here is that the bank wants to get rid of the image of a russian bank . the application sense, it already seems to be working for two years will be successful enough and they took the easiest way, will it be possible due to this action to prevent the fact that clients? it seems to me that clients still look more at the shareholder and those who pay attention to it, and because sense bank with shareholders are putin's henchmen that alpha- bank as public shareholders and putin's, it's all the same, it seems to me that it matters for those who know about it, and for those who don't know who are still the shareholders of alpha bank, in principle, changing this name will

we are seeing banks to fit from this loan growth.n the underwriting, that is a critical part in any bank and the underwriting standards we believe are healthy or strong. we have to remember the cost of what we went through in 2008 and 2009 and what was created following that. the federal reserve has de-the banking industry balance sheets and has pushed some of the highest risk loans into the banking market and that is where issues could percolate to the economy slowdown. -- should it be economy slowdown in the next six to 12 months. tom: there is a great black bear, a giant statue renamed for gerard cassidy. does far-- var matter? gerard: in the securities area and does matter, trading in particular does matter. the banks have done a very good job following 2008, 2009 in managing the bar for those securities and we have not seen it get out of hand like we saw during the financial crisis. i would say because of the lessons learned in the past, it is much better today, the system is safer. there are still risk, i don't want to dismiss

easy bank.inciple, there are already many such brands, so the ministry of digital transformation is working on the creation of its own neobank, the bank wrote about it, citing forbes, with reference to its own sources, again, there is no yet what is the official statement of the ministry, but this news has already caused great controversy in social networks. i know that mr. yevgeny wrote something on this topic, i will not quote it, mr. yevgeny, can you repeat your opinion, what do you think about the ministry can create its own neobank, as i know now that the ministry is not talking about the creation of a classical bank, it is about creating a platform or a fintech company that will make life easier for consumers. that is, a neobank is not a bank, it is a fintech company that we have had for about 10 years of such neobanks, the most famous of them is monobank and in my opinion, the market of these neobanks is quite strong. it is quite large. there is a huge choice of consumers. the action is a

the banking system . if this spreads out, so they have a lot more leverage to express their discontent. i say diana shale over there and economists are talking to us about the various scandals at the moment hitting the chinese property market and banking sector. thank you very much for the insight. very interesting stuff. thank you, ben. and as we saw in our banking report in china, the q, our color code on a smartphone can restrict your movements. green means you're healthy, and you can go about daily life. but yellow or red, mean, you present a risk. we met a human rights lawyer who says the software is being used as a form of state control ginger helen lytle, lawyer, wong. you hasn't been able to move around freely for some time as a critic of the regime. she's often been under house arrest. but now the government has developed a new restriction on movement. the corona warning app is compulsory nationwide, but no longer works for her long. you can't even go shopping maybe even when she needs to go to c

easy bank., there are already many such brands, so the ministry of digital transformation is working on creating its own neobank, the bank wrote about it from forbes referring to own sources, again there is no official statement from the ministry yet, but this news has already caused great controversy in social networks. i know that yevgeny wrote something on this topic , i will not quote yevgeny can you repeat your opinion what do you think about the fact that the ministry can create its own neobank, as far as i know now, this is precisely about the creation of a classical bank by the ministry, it is not about creating a platform or a fintech company that will make life easier for consumers. neo-bank - this is not a bank, this is a fintech company, we already have about 10 such neo-banks, the most famous of them are monobanks and in my opinion, just now the market for these neo-banks is quite strong. it is quite large. there is a huge choice of consumers . integrated with a lot of banking appli

the stick with the banks for now . we heard earlier from goldman ceo. >> given the challenging operating environment, we are examining spending and investment plans. as a result, we are taking the number of actions to improve operating efficiency. we have made the decision to slow hiring velocity. kriti: for more on goldman and bank of america, let us bring in the sonali basak that i want to start with hiring. that seems to be something that is not talked about. sonali: this is the first thing to say, we are on watch. while wall street is worried about margins, goldman says it has operating leverage. it will not be the only company to say so. for goldman sachs, that means that when annual performance reviews come back, and they had to suspended that during the pandemic. that is a way to see who is performing the most at a tough time. goldman beat on return on equity, on efficiency. they are saying they want to be more efficient. when you look at goldman, it did not take as steep of a loss that you saw in breakdowns bas

him left two banks that have russian owners , should be state-owned - this is forward bank, alpha banke at war with russia, with the state, we are at war for ordinary russians, somehow there was such a logic, but we see that these are the banks of the great russian business is big, russian business exists because it was able to make some bridges, it was able to make some contacts with putin's regime, and that's why it is big and russian now. here are the cases that the sbu is opening there against the owners of these banks. there is no business in russia that is not related to the regime. well, if it is not a big bank, yes, relatively speaking, then alpha is systemic. as far as i know, it is important for the existence of the banking system of ukraine, so uh, maybe that's why they haven't come for alpha yet. there is such a hidden story that clients are voting with their feet, we see that people are taking money from these banks because they know who their owners are. and this is just a natural process and a system for the system as such . how much of the all-ukrainian financial system

a british guy who invented modern banking, he took jp morgan from the starchy -- st odgy bank. -- youre seeing year-over-year, moving from a 40 statistic down to 54, i think i'm somewhat close here. the value at risk is not to be ignored. mr. diamond tackles this enormous bang -- bank. it is like the sonali kim. -- cam. she's going like this on the phone. jonathan: the question this morning, i wonder if you can answer it the decision to suspend an share buyback, how much of this is a boost and the banks saying we're going to have some problems, are you ready for them? sonali: i think it -- the concern is the you are seeing its are to, but to his point, you do have a little strained when you're looking at the institutional side and for side. that is also concerning. the biggest jump was in fixed income. these were supposed to be fixed markets and jp morgan is a intermediary when liquidity is up. you have to worry about the consumer side very rapidly. lisa: i want to talk about what the fed is worried about, neal donna said on twitter, behind door number one there is enough to push the

the national bank declared.we received less than 4 billion, although we need, we know from the information, at least 5 billion dollars every month external and as a result of external financial aid, it is necessary to look for other sources about which the national bank of ukraine talks about other sources, i.e. other sources - this is external financial aid, further that when we raised the discount rates, we did it there 25 we also talked about the fact that it should be returned return taxes there to customs payments, what were the wars, uh, well , especially with regard to imports into ukraine, this is uh . the decision was made there last month, that is, and well, i understand that there gradually this channel will work receipts to the state budget well, it is clear that the national bank was talking about the need to raise the yield on the bonds of the internal state loan on the military bond, because today i will say my point of view , and as an expert, look, we have inflation there , again, the national b

banks in focus after the banking and insurance regulator urged banks to meet legitimate the man's andal estate market. haidi: we are watching shares of chinese lenders as well. the nation's banking and insurance regulator urging those banks really to potentially provide lines of credit so these eligible developers can deliver on these overdue projects and perhaps try and restore some confidence to the sector. n macau -- in macau, the government extending the citywide business shutdown. the world biggest's maker of batteries for electric vehicles is considering at least two locations in mexico for a manufacturing plant to supply the likes of tesla and ford. coming up in the next hour, we will discuss the outlook for chinese macro fixed assets. that is it for daybreak asia. markets coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. stay with us. this is bloomberg. ♪ psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $

olesya. the national bank had some kind of opportunity to do things differently, as you think.ell, to be honest, i think that the national bank can do it much earlier, well, in reality , it stabilized the situation on the financial market through the establishment of a fixed exchange rate. since february 24, but at the moment when er he raised the discount rate i think in parallel with the increase of the discount rate to release it into the exchange rate , this is clearly the first and second, well, look, you and i must understand that the existence of currencies of two exchange rates always leads to quite serious abuses and when you and i say that someone is -e let's say that he overpaid for imports for uh 29:25 and someone paid 37 hryvnias per dollar for it, so we have to understand with you that this difference clearly did not end up in the pockets of citizens, but in the pockets of, say, certain related companies, so the best the option for everyone is to derive the actual exchange rate as close as possible to the figure that is set today on the real cash market well, plea

do they want to be a responsible bank like bank of america?ey want to be wealth management, like morgan stanley? or as william cohan wrote, do they just want to be goldman sachs? ken: goldman will be goldman, it's a great franchise but the second order speaks to your question about the separation on those exposed to credit card, consumer loan and commercial, they were dinged and had to build their numbers back up. bank of america is one of them with morgan stanley having a huge increase like we saw with goldman sachs today. goldman wants to be more like morgan stanley. those businesses are bigger consumer wealth management offsets in decline asset management. that is a part of their strategy, to expand to get the millennials early in the investment stage and then they move into the private banks. the asset management business was down significantly with the earnings of beat on a lower mark to market pricing, likely to come back in the second half of the year. i like the goldman roof work today, i think it's a good one. they do want to be more

he knows front to back banking. i think he is ideally positioned. >> you need radical cost-reduction and retrenchment. will those job cuts come from the front or from back to front. where they downsizing to come from. >> whatever we do execute it will not just cut and run. i think with management still at the core and we want this to continue to improve on that one. so we will look, i think it's a major redesign because the complex and this is what we are going off. >> that risk management didn't work from credit suisse over the years. >> it seemed to be a great investment update. we made excellent progress. >> in terms of you and the chairman, what is your number one message to the board today. >> the board is complete unified behind that strategy that we announced today. it's a refocusing of the strategy, it speeding up and we will take more radical steps than will be announced for example here. >> thomas did a great job. let's not forget, he took over in one of the most challenging periods, it took -- put us back

clients of this bank, that's what the largest bank post bank is.s that we know well and where we go for that same taste of that very smile, that very. mom can have a potato goodbye, which it was once upon a time and will be remembered forever for coffee, without which you can’t wake up and the very moment when you went for coffee, but stayed for an hour, for a random stop and a phrase, the route was rebuilt for the very table where couples walked and quality, behind which are dozens of suppliers and stand as a wall name changes love remains the same 162,000 people are already waiting for millions to say tasty again and that's it incredible and reliability guaranteed bonus plus 5% to the first deposit in any bank online in fing all deposits are insured. sbermarket drops the prices of your favorite products cheaper than in the chicken loop store from 219 rubles. supermarket. order profitably in installments for 10 months halva as before, it weighs nothing to you. still zero percent on installments of 0 rubles. there is no down payment or maintenance

for example, alpha bank ukraine decided to change its name to mean bank, will this help the bank to retain clients, who have recently fled, as we have already discussed with you, e.p. mikhailov, the banking sector is very conservative, but even in it, it is a matter of brand, it works marketers who know their business, they go to the bank and on the banking market to him it seems to them to work successfully, let's take a monobank for comparison , in fact, it is imaginary. in the understanding of ukrainians, this is a separate bank, although in fact legally it is part of the universal bank, that is, in principle, nothing. no one says anything because there is a formed project in the case alphas and meaning are, of course, a slightly different situation here, since this is no longer the construction of a new brand, but simply its reformatting, e.e., the mobile name of the mobile application will now become the name of the bar. e. the change in the ownership structure of the bank, which, let's be frank, during a terrible war is, well, unlikely. i think that it will happen already after the v

and we, as an association of ukrainian banks, e-e banks, took phenomenal steps in the period startingry 24 and until today, because no one believed that the banking system could stand in such conditions. usually, it is usually 3-5-7 days and beyond everything is excluded and with reference to sorry, the war is closed. but if we are talking about saving your savings, look at the hryvnia, e-e, it will be devalued, that's for sure, because, well, now here, most of the financial circles are inclined to the point of view of maintaining a fixed exchange rate, which the national bank recorded on february 23, 2022, and the 29:25 mark no longer makes sense, because in ukraine we live now with two currency rates, that is, there are official national bank rates and the market rate, which is, for example, uah 35-36 per us dollar. that is , we are somewhere analyzed within the association of ukrainian banks, and we predict somewhere that the hryvnia will most likely fall, the spring of foreign currencies. it may stop somewhere within the range of up to 40 . account of foreign exchange reserves but

the first one i would call conventional banking. traditional banking. trying to get the highest margin possible by increasing interest rates and prices and keeping losses low. that bucket is doing extraordinarily well. regional banks will focus in that aria doing well and jp morgan itself did extremely well in that area. the second bucket is the capital markets business. capital markets would be their investment banking activities, mergers and acquisitions, mortgage banking, trading to some extent. that bucket is in trouble. it does not appear that investment banking or mortgage banking or mergers and acquisitions, they certainly did not do well in the second quarter. i don't think they will do well for the remainder of the year. the third bucket is the accounting issues that banks have to deal with. most important is where you going to put your loan loss provisions? if you think we are into a recession, you want to increase your provision and we saw jp morgan do that in this quarter. if you think we're going to good times, you are going to reduce your

banks are interesting. us in terms of the overall market, at the start of the year, the more defensive parts like health care, telecoms and utilities have outperformed particularly as investors seek safe haven but those investments do feel crowded right now. the other sectors are more interesting, the financials, industrials, technology sectors where if you can find reasonable growth in resilient businesses, the valuations are looking quite reasonable here. you have to start shifting away from that defensive mindset because you are seeing short-term rate expectations reset very quickly and actually focus on where there is growth, but where the longer-term valuations are reasonable as well. dani: pretty remarkable to see how fast markets backed off of that 1% interest rate expectations that's richard saldanha, equities fund manager at of the above. the best of aviation, the farnborough air kicks off today. planes abound. we are live at the event next. this is bloomberg. ♪ >> we do need to tackle seriously in

from the executives at the big bank is the consumer is resilient with bank of america out there talking about the highest order of consumer spending ever. jonathan: exactly, nailed it. absolutely perfect. this is the juxtaposition that we have right now. a single line like that from a major bank versus the levels of gloom that we have to consider. tom: the average number -- jonathan: the average number of the consumer, bank of america, the research division did some work on this with the lower income threshold in america's -- spending close to 10% of that monthly wallet income on gas and it might getting a bit that are in the move that we have seen over the last month, but that's the story of the last year, getting's. jonathan: letting you look at equities, oil has a lift on west texas for a second. jonathan: we have to bounce from that story at the end of the month with futures in an outperforming nasdaq with yields just a little bit higher today. the 10 year wasn't the story last week with yields lower. crude is up as well, crude commodities getting slammed over them last month or so.

serhii nikolaychuk, deputy chairman of the national bank of ukraine, was with us.ally , positive news from the united states. an exclusive coin was released in america . the white house souvenir shop issued a collector a coin dedicated to ukraine, namely the ukrainian resistance to the russian invaders on the island of the snake, the store website will inform about this, each coin will have certificates with the edition number and a case made of gold with the presidential seal, as noted in the store , delivery to ukraine and all nato countries is free, and the coin itself costs $100, in addition, 20% of the proceeds from the sale will be directed to ukrainian women and children, this was news of the economy during the war. i am andriy yanitsky, watch this program weekdays at eight o'clock with a repeat at 11 a.m. and on youtube when it's convenient for you e tv channel espresso together we will win we are looking for three-year-old danylo rubtsov and his 11-year-old brother kalvar imagine the fate of the children nothing is known for more than three months they wer

cole: citi, their commercial bank is not as big as the banks we own.about it as investment bank related like citi. that is not the most attractive part of the banking world. i would have to say citi is not a bad thing to own. we own -- look at the commercial world, traditional banking to be the most undervalued part of the banking world. what sharp is saying, do not have stress to the world shutting down. no one is exactly bullish on people taking on a mortgage in the next 60 days. it is the dichotomy between those things. investment banks are detonating quickly, it is like a flat ask about. it is going to end up on the ground. that is what we are seeing about -- in the noncommercial aspects of banking. euphoria is over. guy: how much of that journey has been completed and how much more is there still to come? cole: we would have thought it would have taken two years for that to finish. it has happened much more rapidly than i probably would have guessed. we are probably 60% of the way there. could it get worse? yes, it probably is. the public market g

we are underweight financials and banks specifically. we do own bank of america, jp morgan.general, their earnings have been better than feared from most of these banks. goldman with the big trading beat this morning. bank of america also beating. i think you have heard consistent messaging from the ceos. i think james gorman used the term complicated, jamie dimon complex. there's a lot of moving pieces. david solomon of goldman was probably the most cautious on his call today. dani: hey, walter, i do want to jump in because we do have the sound of david solomon speaking at his earnings call. i want to play that for you and our viewers and get your reaction. >> there's no question that the market environment has gotten more complicated, and a combination of macro economic conditions and geopolitics is having a material impact on asset prices, market activity, and confidence. we see inflation deeply entrenched. we expect there will be more volatility and more uncertainty. dani: for one, i am now scared you are a mind reader since he said that and i wanted to play that tape to

from banks' perspective, if you look at china big banks particularly, their mortgage exposures can be% of their total bank loans. at the same time, we have an estimate in terms of how big this impact in terms of home sales will be. so if you consider all the home sales by those developers devoted in the last five months, the total share can be as high as 4% of the mortgage outstanding in china's whole banking sectors. shery: there is a selloff expanding for developers. to some of those that we thought were pretty safe, we saw the divergence in the onshore and offshore -- market, especially with the onshore being pretty resilient despite the crisis we have seen in the offshore market in the past two years. that really -- could that divergence shrink to the downside? betty: yes. i think that is why we think that the incident actually warrants top reaction from policymakers. this could affect banks, state-owned developers, as well as local bankers and civilians. helping to push the whole process and also helping to make sure that the project will be delivered as this could be the top pri

banking on change. credit suisse ousts the ceo and announces a strategic review after a massive loss. deutsche bank describes its cost target as inflation bites. but unicredit raises guidance as profit doubles estimates. let's take a look at the futures as investors way out -- weigh up the 75 basis point hike. if you get 75, does that provide some release given that some parts of the market have previously been pricing 100 basis points? futures pointing to gains of .3% as well. nasdaq futures pointing up by more than 1% on the back of the outlook particularly from microsoft, a very strong, and the beat in terms of ad sales from alphabet. adding reassurance to the sector in terms of demand on the back of what we saw fro snap and twitter. the ftse 100 up by .4%, in the first few seconds as we wait for markets to price this stage. we saw for their gains in terms of gas prices yesterday. and that of course as well weighing on the prospects in terms of the recessionary impact. 75 basis points is the expectat

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some of the banks are still pretty sanguine.an saying we will finish the year inside 20 basis points. if that is the case, i will be looking for the franchise on the consumer side. [indiscernible] it is possible we will have a recession but it will be next year. it is about increasing reserves. tom: to offset the recessionary risks and the pressure on credit. the head of financials at federated hermes on the back of the view that trading and volatility will continue to be a benefit for the banks. coming up, the french government offers to pay to fully nationalize the utility. we got the details on that next. this is bloomberg. ♪ tom: welcome back to the open. 52 minutes into the european trading day. checking out where things stand. losses of 0.5%. the ecb officials are disgusting or considering 50 basis points as the hike on thursday. they had flagged 25 basis points but they are contending with high inflation. and the potential that russia will not restart the gas flows around toward stream one later this week. there is day is

bank of america, the retail banks, goldman sachs. and s. >> o'reilly and shock wave. >>> bear activity in one name. mike, what did you see? >> we're looking at essential lit marquee bank. jpmorgan traded 1.2 times. that wasn't as interesting as what they were trading. the june 2023, 75, we saw over 3700 of those trading. the reason that stuck out to mow because the level, the 75 strike is well out of the money. it's below the level we saw if march of 2020 if the early pandemic decline. all right. thanks, mike. for more tune in to the full show friday. coming up, it's been rough year for caterpillar shares. he will break it down. >>> today's growth stock probund a good sign? why you may want to think save. don't go anywhere. "fast money" is back in two. lemons. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels. so you can go and see all those, lovely, lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪ >>> welcome back to "f

>> we have a strong bank.de diversification of earnings as we have reported over another -- a number of years. we will miss the bank, but our banking business was a significant cost burden, caused investments, mirrored in hours or is business as well. it will allow them to keep up with competitors. that is one of the decisions that is played into our thinking , and we believe the opportunity for us is to focus more exclusively on insurance. we can continue with but move faster on. juliette: you have been opposed by bendigo. why did you not decide to go with them? >> i am not going to go through all of the details of approaches were previous activities. what i do know is this is a transaction we believe is in the best interest of shareholders and the best transaction available to us. it is a cash transaction that delivers certainty to us and we have to work through regulatory approvals. we have done a lot of analysis. we have been spending a lot of time thinking through what options are available to us outside

all of the banks reported.s fargo saying net interest income up 20% this year from mid teens. jpmorgan chase increasing by a couple of billion. that is 4% on the revenue side, it is quite positive in the near term, the danger and concern before we came into the result the fed raise rates too high and put the u.s. in recession. that would be negative >> to follow-up on that, i wasn't going ask about net interest margin, but the shape of the yield curve and how flat/inverted it is. is that a headwind for banks >> it is a watch of the potential recession coming up. banks are cautious and most increased provisions whereas last year, released reserves on the other hand, a lot of them are correlated to raising interest rates the more the fed raises rates, the more positive it is for income that is at the moment which is offsetting negative as we see with the fed being aggressive with the 75 basis point hikes. potentially talking about 100 basis point hikes at the next meeting. >> the issue is the weakness in the inve